HONG KONG, July 21, 2023 /PRNewswire/ -- Hangzhou SF Intra-city Industrial Co., Ltd. (Stock Code: 9699.HK), China's largest third-party on-demand delivery service provider, is pleased to announce that on 19 July, the Group received a filing notice from the China Securities Regulatory Commission (the "CSRC") regarding the conversion of a total of 451,403,783 unlisted domestic shares of the Group held by certain shareholders into H shares of the Group and the listing thereof. According to the filing notice, the CSRC Filing in relation to the H shares conversion and listing has been successfully completed, marking the Group as one of the first Hong Kong stocks to be approved for full circulation under the newly implemented guidance for full circulation of H Shares.
Upon completion of the conversion and listing of the shares, SF Intra-city's total number of H shares will significantly increase from 310,289,026 to 761,692,809. This surge represents a remarkable increase in the approximate percentage of issued H shares from 33.24% to 81.60% of the Company's total number of shares. While the details of the Group's implementation plan for the conversion of unlisted domestic shares and H shares listing is yet to be finalised, completion of the conversion and listing is subject to the performance of other relevant procedures required by the Stock Exchange and other relevant onshore and offshore regulatory authorities. The Group will make further announcements on the progress of the conversion and listing, in compliance with the Listing Rules, as and when appropriate.
SF Intra-city expressed that the Group remains dedicated to increasing the liquidity of its shares. SF Intra-city is also fully prepared to cooperate with relevant departments to facilitate a smooth and successful conversion and listing process in order to further promote the stock liquidity, turnover rate, and circulation market value, striving to deliver greater value returns to its shareholders and investors.
Prior to the completion of the filing for full circulation of H shares, SF Intra-city has recently issued a positive profit alert, expecting to record a profit for the first half of 2023 as compared to the first half of 2022. This turnaround from loss to profit is a result of sustained business growth and continuous improvement in the gross margin and expense ratios in the first half of 2023. SF Intra-city has maintained strong momentum in the second half of the year and continues to optimise its distribution network in its business actively through a multi-pronged approach. Since 3 July, the Group has undertaken Didi Freight's "Express Delivery" business, fortifying the advantages of national distribution services. Offering two types of instant delivery services, "Economic Help" and "Direct Delivery by Special Personnel", as well as 24-hour Intra-city Pick-up and Delivery, Run Errands, and Purchase For Me, SF Intra-city continues to contribute to the growth of China's private economy. SF Intra-city has recently integrated its delivery services into WeChat's "Store Delivery" Service to jointly construct a new local lifestyle service ecosystem. Moreover, SF Intra-city will continue to seize the opportunities in multi-channel traffic, local retail development, and third-party on-demand delivery service, and the opportunities from the recent national policy of "Quarter-hour Convenient Living Circle" and the initiative to boosting consumption and livelihood, thereby aligning with its corporate mission to "bring enjoyable lifestyle to your fingertips".