Serve Country Strategy, Deepen International Layout: YTO Global Strategy and Acquisition of On Time Press Conference Held in Hong Kong
On May 16th, YTO Express Group Co., Ltd (600233.SH) and On Time Logistics Holdings Limited (6123.HK)（hereinafter referred to as “On Time Group”） held YTO Strategic Acquisition of On Time Press Conference, introducing the aim and vision of YTO’s globalization to Hong Kong media and investors.
Before the conference, YTO has announced that it acquired 61.97% of On Time Group current shares by 1,041,116,160 HKD (4.07HKD/share), in total 256 million shares. On May 5th, YTO and On Time Group signed the Strategic Acquisition Agreement officially in Shanghai.
In the newly closed " the Belt and Road Initiatives " International Cooperation Peak Forum, it was addressed that development is the core issue to carry forward " the Belt and Road " construction, thus releasing the potential of each country and realizing the integration of economies and sharing of development outcomes. As an important international financial, shipping and trade center, Hong Kong is an important node of the national" the Belt and Road " construction and an important gateway to the new Maritime Silk Road.
Since founded, YTO has kept the vision of “Customers’ Request, YTO’s Mission”, developed into a large-scale express logistics group and maintained a leading position in the market, covering express, logistics, warehousing, air transportation, information technology and financial services. YTO was listed in Shanghai Stock Exchange as the first listed express company in China. Till the end of 2016, YTO Express has established 62 self-owned transshipment centers, 2593 franchisees, 37713 terminal depots and five all-cargo airplanes. Currently, YTO’s express net coverage has covered all prefecture-level cities nationwide and launched express lines for Hong Kong, Macao, Southeast Asia, Europe, America, Australia, South Korea and Japan, realizing the reaching to major overseas markets. In 2016, the company volume reached 4.46 billions with revenue of 16.816 billions with a 39.04% growth compared with the previous year.
Currently, YTO is grasping the historical opportunity of “the Belt And Road Initiatives”to serve the country strategy and regional development, endeavouring to be a globally leading comprehensive express logistics enterprise and supply chain integrator. YTO has achieved in-depth cooperation with Beijing, Guangzhou, Chengdu, Wuhan, Xian, Nanning, Jiaxing and Yiwu to jointly create a global multi-modal transport integrated logistics hubs.
YTO has also laid solid development foundation in Hong Kong. Currently, YTO HK headquarters has 12 directly-operated depots and 5 shifts truck lines between mainland and Hong Kong. It is estimated that YTO will set up around 40 directly-operated and franchisee depots with more than 20,000 daily pick-up and delivered parcels separately.
On Time Group is a sophisticated and growing international logistics company, taking air and sea freight forwarding as its core business and providing customers with warehousing, delivery, customs clearance, contracts and other logistics service. Now On Time Group has entities in 17 countries and regions, 52 transshipment centers globally, more than 2000 lines, covering business more than 150 countries. On Time has cultivated wide-range customers group, covering various forwarders and direct clients.
The chairman of the board of directors and president of YTO Express Yu Weijiao addressed, with the acquisition of On Time Group, YTO will have globalized network, linehaul transportation capacity and customs clearance abilities, as well as experienced management and operation team, thus obtaining first move advantage to establish global network and ensure overseas competition strengths in a speedy manner.
For instance,with regards to talent acquisition,after long-term development, On Time Group localized and sophisticated management, operation and customs clearance team is with abundant experience and expertise, which greatly shorten the time for YTO to build its own team. The On Time branding will enable the company to absorb more talent and strengthen the global business team. In capital-wise, as a listed in Hong Kong Stock Exchange, On Time Group has advantages of high efficiency, low cost and diversified financing channels for overseas financing, which will support YTO to acquire diversified capitals to develop its global business.
Yu Weijiao introduced, with the power cooperation, YTO will further identify Hong Kong's position in the international strategy of YTO Express with four platforms to build: 1. the public platform of multimodal transportation; 2. the international transshipping hub for export and import business; 3. the headquarters of YTO Express International; 4. the headquarter of GPA-Global Parcel Alliance, initiated by YTO.
In the future, two parties will achieve in-depth cooperation in talent team, business network and marketing, assisting YTO express products to reach major global markets within 72 hours, launching the "most cost-effective" full link products and becoming a new landmark for global logistics services. With years efforts, the company will realize geometric growth of markets and networks.”He said.
In the HK Press Conference, YTO and On Time teams replied questions from media and investors and achieved in-depth communication in regards to next step development. Yu Weijiao also accepted interviews from Hong Kong and mainland media.YTO global strategy and the acquisition has been widely accepted by Hong Kong media and investors.
In Hong Kong, Yu Weijiao and YTO senior management visited YTO HK Branch and On Time global headquarters.