SHANGHAI, MARCH 27, 2024/NEWS/-- ON MARCH 26, RAPID TRANSIT ENTERPRISE ENERGY LOGISTICS (9956.HK) ISSUED ITS 2023 RESULTS ANNOUNCEMENT, THE FIRST FULL-YEAR RESULTS ANNOUNCEMENT SINCE ITS FIRST FULL-YEAR RESULTS ANNOUNCEMENT SINCE THE STRATEGIC TRANSFORMATION OF “QUALITY AND PROFIT” IN THE INDUSTRY. Data showed that Enge achieved year-over-year operating revenue of $99.17 billion, up 6.2% year-on-year, gross profit of $12.68 billion, up 73.6% year-on-year, adjusted pre-tax profit of $6.54 billion, a significant reversal of profit; Adjusted EBITDA of $17.30 million, up 57.8% year-on-year, operating cash flow increased to $17.06 million, zero burden Total shipments reached 1204 million tons, in line with last year's baseline, serving terminal customers of approximately 550 million, an increase of about 17% year-on-year.

Overall, under the “top five” objectives of “best cost, best quality, most stable uptime, fastest service response, and densest network coverage”, the transformation efficiency of the energy logistics transformation was highlighted. Profitability increased significantly in 2023, with gross profit increasing by more than seven percent year-on-year, reaching the best level since listing, and Leading the industry in terms of volume, profitability, network coverage, cost control, and more. “Quality Growth” was the key word of the year.

The announcement shows that in terms of cost capability, Energy Logistics continues to “refine its inner workings” to improve operational efficiency and create ultimate cost control capabilities. The company started from the offshoot, upgrading the allocation structure to improve efficiency around people, sites, and equipment to streamline operations and keep costs and costs tight. On the other hand, the power transport side continues to reduce vehicle costs by increasing transport efficiency through routing planning, dynamic structure improvements, etc., while building a robust fleet management system. In the second half of 2023, the unit allocation center cost was 156/ton, the ratio decreased by 17.1%, the unit trunk transportation cost was $310/ton, the ratio decreased by 5.1%, and the streamlined management capacity continued to improve.

In terms of the volume structure, Enenergy's precision pricing mechanism replaced low-profit and low-margin business with high-quality, high-margin business. All year tickets fell from 106 kg in 2022 to 93 kg in 2023, with higher margin mini tickets and small ticket zero-burden shipments growing 9.1% and 2.4%, respectively.

In terms of service capability, the company's new brand concept of “Safe Energy, Good Goods” continues to improve customer satisfaction in order length, on-time fulfillment rate, return on investment rate and complaint rate across multiple service metrics. In 2023, Anenergy's average order length decreased by 10.1% year-on-year, the on-time fulfillment rate increased by 12 percentage points, the loss rate for 100,000 items decreased by 83.2%, the break-even rate decreased by 33.6%, and the number of complaints for 100,000 tickets decreased by 64.4%.

IN TERMS OF ORGANIZATIONAL CHANGE, AN ENERGY IS COMMITTED TO BUILDING A FLATTENED ORGANIZATION, DEVELOPING A SERIES OF PERFORMANCE-DRIVEN OPERATIONAL INITIATIVES, TRANSFORMING MID-BACK FUNCTIONS INTO A SPECIALIZED SHARED SERVICE HUB. BY BUILDING A ROBUST BUDGET AND FINANCIAL SYSTEM, OVERLAPPING THE USE OF DIGITAL TOOLS, CONTINUES TO ENERGIZE ORGANIZATIONS. At the network building level, based on a precise pricing policy, agile services and all-round empowerment support, Anni is committed to transforming the platform ecosystem towards fairness, deep coverage, sustainable monetization, and a good atmosphere of shared wealth. By the end of 2023, the number of freight partners and freight agents in Enon Logistics exceeded 28,000, the town coverage rate was 98.2% and the main freight partner retention rate was 98.2%, up 2.5 percentage points year-on-year, and platform strength and adhesion were significantly strengthened.

Energy Logistics said that as a profound year of reform, 2023 has laid a good foundation for the company's long-term development, and the company is confident of ushering in a new era of quality growth. Next, the company will continue to implement a strategy focused on quality and profitability, to strengthen its competitive advantage in quality efficiency, operational efficiency, eco-network, digital investment, product matrix and sustainability, and strengthen its competitive advantage and promote the integration of China's zero-burden industry.

In its 2023 Zero Load Logistics Industry Insight Report, McKinsey said the $1.5 trillion domestic zero-burden market is facing a structural transformation upgrade and is well on the way to a stock market “consolidation period,” in which the most mature full-line express is the only track likely to outrun the $500 billion Dragon. Industry insiders said that Enge Logistics 2023's results undoubtedly demonstrate its absolute leading edge as the leading enterprise, demonstrating the correctness and foresight of the brand's strategic transformation with “quality and profit” at the core, which is expected to further lead China's rapid transit industry towards high-quality growth.