Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no

responsibility for the contents of this announcement make no representation as to its accuracy or completeness

and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the

whole or any part of the contents of this announcement.S.F. Holding Co. Ltd.順豐控股股份有限公司

(A joint stock company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 6936)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED JUNE 30 2025

The board of directors (the “Board”) of the S.F. Holding Co. Ltd. (the “Company” together

with its subsidiaries the “Group”) is pleased to announce the unaudited results of the Group

for the six months ended June 30 2025. This announcement containing the full text of the

2025 interim report of the Company is prepared with reference to the relevant requirements

of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong

Limited in relation to preliminary announcements of interim results. The Company’s 2025

interim report will be published on the HKExnews’s website ( www.hkexnews.hk) and the

Company’s website ( www.sf-express.com) in due course and will be sent to the Company’s

shareholders (if requested).By Order of the Board

S.F. Holding Co. Ltd.GAN Ling

Joint Company Secretary

Shenzhen the PRC August 28 2025

As at the date of this announcement the Board comprises Mr. Wang Wei as chairman and executive director

Mr. Ho Chit Ms. Wang Xin and Mr. Xu Bensong as executive directors; and Mr. Chan Charles Sheung Wai

Mr. Lee Carmelo Ka Sze and Dr. Ding Yi as independent non-executive directors.Annual Report 2024 S.F. Holding Co. Ltd. 001

Company Vision

001

To be the well-respected and the world’s leading

digital intelligence logistics solution providerImportant Notice

The Company’s Board of Directors Board of Supervisors Directors profit distribution plan less the Shares in repurchase securities

Supervisors and senior management hereby guarantee that the account of the Company an interim cash dividend of RMB4.6 (tax

contents of this interim report (the “Report”) are true accurate inclusive) per 10 Shares will be distributed to all Shareholders. The

and complete and that there are no misrepresentations misleading Company will not carry out bonus issue or conversion of capital

statements or material omissions and shall assume individual and reserve into share capital for the six months ended June 30 2025.joint legal liabilities. Upon preliminary calculation using the Company’s total number of

Shares as of the date of this Report and excluding the Shares in

The interim financial report is prepared in accordance with the

the repurchase securities account on the even date the amount

International Financial Reporting Standards and reviewed by

of the 2025 interim cash dividend distribution is expected to be

PricewaterhouseCoopers.RMB2.32 billion accounting for approximately 40% of the profit

The Report has been considered and approved at the 23rd meeting attributable to owners of the Company for the six months ended

of the sixth session of the Board of Directors of the Company (the June 30 2025. The Board has been authorized by the shareholders

“Board Meeting”) with all Directors present and voting in favor. at the 2024 Annual General Meeting of the Company to determine

and implement the 2025 interim profit distribution plan.Forward-looking statements such as future development plans

contained herein do not constitute any undertaking made by the The Report is prepared in both Chinese and English versions.Company to investors. Investors are advised to invest rationally and If there is any ambiguity in understanding the interim financial

to take into account possible investment risks. report the English version shall prevail. If there is any ambiguity

in understanding of other contents other than the interim financial

The profit distribution plan considered and approved at the Board report the Chinese version shall prevail.Meeting is as follows: based on the total number of Shares at

the record date in respect of the implementation of 2025 interimContents

004 Corporate Information

008 Key Accounting Data and Financial Indicators

013 Management Discussion and Analysis

046 Corporate Governance and Other Information

054 Report on Review of Interim Financial Information

055 Condensed Consolidated Statement of Profit or Loss

056 Condensed Consolidated Statement of Comprehensive Income

057 Condensed Consolidated Statement of Financial Position

060 Condensed Consolidated Statement of Changes in Equity

062 Condensed Consolidated Statement of Cash Flows

064 Notes to the Condensed Consolidated Financial Statements

105 Definitions004 S.F. Holding Co. Ltd. Interim Report 2025

Corporate Information

Board of Directors H Share Registrar

Executive Directors Tricor Investor Services Limited

Mr. Wang Wei (Chairman) 17/F Far East Finance Centre

Mr. Ho Chit 16 Harcourt Road

Ms. Wang Xin Hong Kong

Mr. Xu Bensong

Legal Advisers

Independent Non-executive Directors As to Hong Kong laws:

Mr. Chan Charles Sheung Wai Herbert Smith Freehills Kramer

Mr. Lee Carmelo Ka Sze 23rd Floor Gloucester Tower

Dr. Ding Yi 15 Queen’s Road Central

Audit Committee Hong Kong

Mr. Chan Charles Sheung Wai (Chairman) Auditor

Mr. Lee Carmelo Ka Sze

Dr. Ding Yi PricewaterhouseCoopers

Certified Public Accountants and

Nomination Committee

Registered Public Interest Entity Auditor

Mr. Lee Carmelo Ka Sze (Chairman)

22/F Prince’s Building

Dr. Ding Yi

Central Hong Kong

Mr. Wang Wei

Compliance Adviser

Remuneration and Appraisal Committee

Dr. Ding Yi (Chairlady) Caitong International Capital Co. Limited

Mr. Chan Charles Sheung Wai Unit 2401-05 24th Floor

Mr. Lee Carmelo Ka Sze Grand Millennium Plaza

Risk Management Committee 181 Queen’s Road Central

Hong Kong

Mr. Ho Chit (Chairman)

Mr. Chan Charles Sheung Wai Registered Address in the PRC

Mr. Lee Carmelo Ka Sze

3/F Complex Building

Strategy Committee SF South China Transit Center No. 1111 Hangzhan 4th Road

Mr. Chan Charles Sheung Wai (Chairman) Shenzhen Airport Caowei Community

Dr. Ding Yi Hangcheng Sub-district Bao’an District Shenzhen

Mr. Wang Wei Guangdong Province the PRCInterim Report 2025 S.F. Holding Co. Ltd. 005

Corporate Information

005

Principal Place of Business in the PRC Authorized Representatives

TK Chuangzhi Tiandi Building Mr. Ho Chit

Keji South 1st Road Ms. Gan Ling

Nanshan District Shenzhen

Joint Company Secretaries

Guangdong Province the PRC

Ms. Gan Ling

Principal Place of Business in Hong Kong Ms. So Ka Man (FCG HKFCG (PE))

9/F Asia Logistics Hub – SF Centre

Company’s Website

36 Hong Wan Road Tsing Yi

New Territories Hong Kong www.sf-express.com006 S.F. Holding Co. Ltd. Interim Report 2025“SF Holding is the largest integrated logistics service provider inCKehyin Aa cacnodu Antsiinag aDnadt at haen dfo Fuirntha nlacriagle Isntd iinc athtoer sworld

1”

Founded in 1993 SF has evolved into Asia’s largest and the world’s fourth-largest integrated logistics service provider through its 32-year

development ranking 393rd on the Fortune Global 500 list. SF offers customers comprehensive end-to-end domestic and international

logistics solutions spanning time-definite express services economy express services freight services cold chain and pharmaceutical logistics

services intra-city on-demand delivery services as well as supply chain and international services (including international express services

international cargo and freight forwarding services and supply chain services). SF boasts an extensive global service network with domestic

operations covering all 339 prefecture-level administrative divisions in China achieving 100% coverage. SF’s international express services

international cargo and freight forwarding services and supply chain services extend to 95 countries and regions globally while its international

small parcel delivery services establish the footprint in 200 countries and regions. SF is also the premium brand in the logistics industry both

in China and globally having been listed for eight consecutive years among “China’s Most Admired Companies” by Fortune China and ranks

first in Express Delivery Service Public Satisfaction in China for 16 consecutive years.The Company’s flagship time-definite express services maintain a commanding market share in China. Leveraging the resources and capabilities

of its express network SF has efficiently expanded into multiple logistics sub-segments – ranging from small parcels to bulky and heavy cargo

from standard express service to customized supply chain solutions and from the Chinese market to Asia and globally. In China SF ranks

first in five segments: express delivery freight cold chain intra-city on-demand delivery2 and supply chain services3. In Asia SF ranks first

in four segments: express delivery freight intra-city on-demand delivery2 and international services4. Leveraging its industry-leading R&D

capabilities SF harnesses technology to empower customers in building secure and efficient smart supply chains with the vision of becoming

the well-respected and the world’s leading digital intelligence logistics solution provider.Looking ahead as a global logistics leader connecting Asia with the rest of the world SF will continue to leverage its well-recognized premium

brand extensive global network coverage and comprehensive logistics service capabilities to accelerate domestic and international expansion

drive sustainable and healthy business growth and position itself as the go-to logistics partner for business customers and retail customers

– fostering growth together with customers and creating shared value.Extensive Scale Leadership 1 Premium Brand

Largest in Asia No. 1 in Asia No. 1

Express LTL Freight Intra-city On-demand Delivery 2 Customer satisfaction for express

International Business4 services in China

4th Largest Globally No. 1 in China

Integrated logistics service provider 1 Express LTL Freight Cold Chain Intra-city 16 years in a row

On-demand Delivery 2 Supply Chain3

1 According to Frost & Sullivan Report in terms of revenue in 2024 3 Among non-state-owned independent third-party supply chain solution providers

2 Among third-party intra-city on-demand delivery service providers 4 Among the integrated logistics service providers in AsiaInterim Report 2025 S.F. Holding Co. Ltd. 007

Business Segments

Key Accounting Data and Financial Indicators

007

Express Logistics

Provide time-definite and high-quality door-to-door delivery service for consumers enterprises and mid- to

high-end brand merchants

Options of half-day delivery same-day delivery next morning/next day delivery taking into account on shipping route and distance;

Time-definite Addressing time-efficient and door-to-door delivery demands such as personal pieces industrial and commercial pieces mid- to high-end brand order

Express fulfillment parcel return services for e-commerce platforms immediate response in JIT mode of production and distribution and other scenarios.Provide cost-effective and quality-guaranteed delivery services mainly for e-commerce platforms and merchants

We focus on serving e-commerce platforms and merchants with stringent requirement on user experience by virtue of our high-quality fulfillment

capabilities standing out in the market attributable to timeliness and door-to-door delivery;

Integrated warehousing and distribution service to serve warehousing needs arising from differentiated service offering and pricing level with

Economy Express nationwide sub-warehouses smart cloud-based warehouses and integrated warehousing and distribution service.Provide one-stop comprehensive logistics transportation distribution and to-door extended service of large

parcel mainly for enterprise production and commercial distribution and personal life scenarios

Provide large parcels B2C delivery B2B batch shipments less-than-truck-load freight transport and full-truck-load transport;

Large parcel warehousing and distribution moving store distribution integrated delivery and installation and other scenarios;

Freight SF Freight carried out through directly-operated network to serve mid- to high-end customers while SX Freight carried out through franchising

network to serve lower-tier markets.Mainly for customers from three sectors: seasonal and fresh frozen food and pharmaceutical

Seasonal and fresh food logistics: Deliver seasonal agricultural products across China directly from place of origin to consumers;

Cold chain food logistics: Provide high-standard B2B2C end-to-end temperature-controlled cold chain logistics services;

Cold Chain and

Pharmaceutical Pharmaceutical logistics: Serve clients throughout the entire pharmaceutical value chain capable of conducting multi-temperature zone control and

Logistics transportation (from -80°C to 25°) and GSP certified pharmaceutical cold storage service.Point-to-point instant delivery service mainly for merchants and customers within the city

Provide customized and standardized product system for business merchants service integrating features of ‘Fetch for Me Deliver for Me

Intra-City Purchase for Me Solve for Me’ for consumer-end users and city-wide on-demand delivery services within average 1 hour.On-demand Delivery

Supply Chain and International

Provide domestic and foreign manufacturers trading enterprises cross-border e-commerce merchants and

consumers with international express delivery overseas local express cross-border e-commerce parcel

delivery and overseas warehousing services

Cross-border standard express: Standard services with high timeliness that meet the needs of cross-border expedite delivery including

high-quality international standard express and cost-effective international special-offer products;

International Cross-border e-commerce delivery: Cost-effective and economical services that meet the needs of cross-border e-commerce platforms and

Express merchants including efficient international e-commerce express and economical international small parcels delivery;

Overseas local express: Offered in Southeast Asian countries such as Thailand Vietnam Malaysia Singapore Indonesia.Provide customers with air sea railway ground and multi-modal freight transport solutions

Air transport: provide air transport services such as pick-up at departure point multiple integration customs clearance delivery to end customer;

International Sea freight: provide sea freight service including all kinds of traditional freight FCL freight and LCL freight;

Cargo and Freight Ground transport: provide innovative and economical road and railway transport services across Europe and Asia.Forwarding

Provide customers in various industries with one-stop domestic and international digital supply chain solutions

Empowering customers with technology leveraging SF’s big data IoT technology and software and hardware system integration capabilities to

help customers establish a global smart supply chain system.Supply Chain008 S.F. Holding Co. Ltd. Interim Report 2025

Key Accounting Data and Financial Indicators

Financial Summary

Interim Results Overview for 2025

Revenue Total assets

RMB146.9 billion 9.3% RMB218.2 billion 2.1%

Equity attributable to owners of

Gross prot the Company

RMB19.1 billion 4.1% RMB95.4 billion 3.7%

EBITDA(1) Basic earnings per share

RMB16.6 billion 4.3% RMB1.16 per share 16%

Prot attributable to owners of

the Company Cash dividend per share

RMB5.74 billion 19.4% RMB0.46 per share 15%

Weighted average return on

net assets

Note 1: EBITDA is not an IFRS measure. 6.07% 0.8 pptsInterim Report 2025 S.F. Holding Co. Ltd. 009

Key Accounting Data and Financial Indicators

009

Total Volume Unit: billion parcels Total Revenue Unit: RMB billion

+25.7%

7.85+9.3%146.9

134.4

5.886.24124.4

2023H1 2024H1 2025H1 2023H1 2024H1 2025H1

The total volume includes the volume of express logistics business and

international express business (exclude oversea local express business).Revenue Breakdown by Segment

3.1%2.3%

23.2% Time-definite Express 23.3%

Economy Express

Freight

44.0%

2024H1 Cold Chain and

43.1%

2025H1

2.9% Pharmaceutical Logistics 3.7%

3.8% Intra-city On-demand 4.0%

Delivery

Supply Chain and

13.1% International Business 13.3%

9.9% Other Non-logistics Business 10.3%

Unit: RMB billion 2024H1 2025H1

6.8%

63.23

59.19

9.7%

34.23

31.20

11.5%

14.4%

17.5519.57

13.2515.16

15.3%38.9%20.8%

5.065.843.965.494.203.33

Time-definite Express Economy Express Freight Cold Chain and Intra-city Supply Chain and Other Non-logistics

Pharmaceutical Logistics On-demand Delivery International Business Business010 S.F. Holding Co. Ltd. Interim Report 2025

Key Accounting Data and Financial Indicators

Gross profit Unit: RMB billion EBITDA Unit: RMB billion

Gross profit Gross profit margin EBITDA EBITDA margin

13.3%13.6%13.0%

11.8%11.8%11.3%

18.319.1

16.615.916.6

14.7

2023H1 2024H1 2025H1 2023H1 2024H1 2025H1

EBITDA is not an IFRS measure.Profit attributable to Quarterly profit attributable to

owners of the Company Unit: RMB billion owners of the Company Unit: RMB billion

Profit attributable to owners of the Company of 2024

Profit attributable to owners of the Company

Profit attributable to owners of the Company of 2025

Profit margin attributable to owners of the Company Profit margin attributable to owners of the Company of 2025

3.9%

3.64.5%%

3.4%

3.2%

5.74

4.81

4.183.50

2.90

1.912.23

2023H1 2024H1 2025H1 Q1 Q2

Assets Unit: RMB billion Net cash flow Unit: RMB billion

Total assets Equity attributable to Debt/asset ratio 2024H1 2025H1

owners of the Company

53.4%52.1%51.4%

13.712.9

221.5213.8218.2-6.2-7.3

-15.4

-17.5

92.892.095.4

2023/12/31 2024/12/31 2025/06/30 Net cash flow from Net cash flow from Net cash flow from

operating activities investing activities financing activitiesInterim Report 2025 S.F. Holding Co. Ltd. 011

Key Accounting Data and Financial Indicators

011

For the six months ended June 30

Year-on-year

Income Statement Items 2025 2024 change

RMB’000 RMB’000

Revenue 146858174 134409720 9.26%

Gross profit 19060542 18313439 4.08%

EBITDA(1) 16610359 15925561 4.30%

Profit for the period 6012403 4760922 26.29%

Profit for the period attributable to owners of the Company 5737699 4806714 19.37%

Note:

(1) EBITDA = profit for the period + depreciation and amortization + finance costs net + income tax expense. EBITDA is not an IFRS measure. For

further details please refer to page 38 of the “Non-IFRS measures” section of this Report.As of As of

June 30 December 31

Period-on-period

Balance Sheet Items 2025 2024 change

RMB’000 RMB’000

Total assets 218236503 213824213 2.06%

Total liabilities 112071266 111488992 0.52%

Total equity 106165237 102335221 3.74%

Equity attributable to owners of the Company 95399730 91993286 3.70%

Asset-liability ratio 51.35% 52.14% Down by 0.79

percentage point

For the six months ended June 30

Year-on-year

Cash Flows Statement Items 2025 2024 change

RMB’000 RMB’000

Net cash generated from operating activities 12936690 13722269 -5.72%

Net cash used in investing activities -17516875 -15444553 -13.42%

Net cash used in financing activities -7280764 -6181865 -17.78%012 S.F. Holding Co. Ltd. Interim Report 2025

Key Accounting Data and Financial Indicators

For the six months ended June 30

Year-on-year

Key Financial Indicators 2025 2024 change

Basic earnings per share (RMB) 1.16 1.00 16.00%

Diluted earnings per share (RMB) 1.16 1.00 16.00%

Weighted average return on net assets 6.07% 5.23% Up by 0.84

percentage point

Differences in net profit and net assets in the financial reports disclosed in accordance with the International Accounting Standards and the

Chinese Accounting Standards are as follows:

Profit attributable to owners Equity attributable to owners

of the Company of the Company

For the As of As of

six months ended June 30 June 30 December 31

2025202420252024

RMB’000 RMB’000 RMB’000 RMB’000

In accordance with the International 5737699 4806714 95399730 91993286

Accounting Standards

In accordance with the Chinese Accounting Standards 5737699 4806714 95399730 91993286

Items and amounts adjusted in accordance

with the International Accounting Standards:

In accordance with the International – – – –

Accounting Standards

Difference description No differenceInterim Report 2025 S.F. Holding Co. Ltd. 013

Management Discussion and Analysis

Overall Review e-commerce platforms into instant retail where the integration of

online and offline near-field commerce models continues to flourish

becoming an essential driver of consumer market growth.Market Overview

The upgrading of industries and the evolution of consumption

patterns are driving accelerated development of the logistics

Domestic Market industry towards efficiency greater flexibility and intelligence.New quality productive forces have steadily advanced According to the China Federation of Logistics & Purchasing the

accelerating industrial transformation and upgrading. total social logistics expenditure reached RMB9.2 trillion in the

In the first half of 2025 value-added industrial output of enterprises first half of 2025 representing a year-on-year increase of 5.0%

above designated size grew by 6.4% year-on-year with high-tech and accounted for 14.0% of GDP down by 0.2 percentage point

manufacturing and equipment manufacturing sectors achieving compared with the same period last year demonstrating continuous

growth rates of 9.5% and 10.2% respectively marking significant improvements in cost efficiency driven by industrial structure

optimization and upgrading of industrial structures. This rapid optimization and technological innovation.growth was largely driven by the acceleration of high-end Rapid growth in high-tech manufacturing characterized by

manufacturing’s overseas expansion and the strategic shift towards dispersed production modes is increasingly steering logistics

high-end intelligent and environmentally sustainable emerging demands toward flexible and customized services. To meet

industries. Notably the production of new energy vehicles and changing customer requirements and supply chain optimization

industrial robots surged by 36.2% and 35.6% year-on-year needs logistics companies have accelerated their digital and

respectively underscoring China’s industrial transition towards intelligent transformations deploying unmanned and intelligent

a more innovation-driven high-value and efficient development technologies to build efficient supply chain capabilities. Such

model further strengthening its position within global value chains. advancements have significantly enhanced responsiveness and

Driven by supportive policies the consumer market in China adaptability helping customers achieve cost reductions efficiency

recorded steady growth with notable structural transformation. gains and shared value creation.In the first half of 2025 under continued national initiatives aimed In the express delivery market segment business volume maintained

at expanding domestic demand and promoting consumption rapid growth. According to the State Post Bureau express delivery

the consumer market remained steady growth. According to parcel volume reached 95.64 billion in the first half of 2025 up by

the National Bureau of Statistics total retail sales of consumer 19.3% year-on-year while revenue reached RMB718.78 billion

goods in China grew by 5.0% year-on-year in the first half of representing an increase of 10.1% year-on-year. Intensifying market

2025 with online retail sales of physical goods rising by 6.0% competition has propelled express delivery enterprises to enhance

slightly lower than that of the same period last year. Stimulated operational precision and technological innovation continuously

by the government’s trade-in of old consumer goods policies optimizing costs and improving efficiency to secure service quality

major product categories such as home appliances furniture and and product competitiveness thereby stabilizing market share and

consumer electronics recorded rapid growth. pursuing sustainable profitability.At the same time structural shifts in consumer preferences have Furthermore consumption patterns are transitioning from online

catalyzed diverse new business formats and consumption scenarios. “traffic-based” to a “scenario-based” integration of online and offline

Emotional and experiential consumption is rapidly emerging as a experiences. Growing demand driven by holiday economies instant

key growth driver with sectors such as immersive cultural tourism retail and emerging lower-tier markets places higher demands on

experiences popular performances and sports events the pet express delivery enterprises’ ability to provide diversified services

economy and designer toys blind box increasingly gaining traction deliver instantaneous responses and expand terminal network

and deeply reshaping the commercial landscape. penetration. Express delivery companies are therefore required to

continuously enhance network coverage expand product portfolios

In traditional e-commerce sectors consumers’ growing emphasis and comprehensive logistics services and build instant response

on value-for-money products is accompanied by heightened and efficient fulfillment capabilities to capitalize swiftly on new

expectations for timely delivery and convenient shopping experiences. trends and opportunities achieving competitive differentiation to

This trend has accelerated the strategic deployment of major stand out in the market.014 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

International Market Against the backdrop of global supply chain restructuring the

rapid rise of cross-border e-commerce and the accelerating

Increasing global trade volatility highlights Asia’s critical role international expansion of Chinese enterprises Chinese

as both a growth engine and a center for global supply chains. logistics companies are presented with a strategic opportunity

In the first half of 2025 the international environment remained to advance their global footprint.complex and volatile with global economic growth exhibiting signs Asia remains the pivotal region for network expansion where

of mild recovery. Adjustments in trade policies by major importing deepening regional connectivity is key. By reinforcing line-haul

countries increasing tariff barriers and frequent geopolitical transportation transit hubs and last-mile delivery infrastructure

conflicts amplified volatility in global trade prompting the World across Southeast Asia South Asia Japan and Korea logistics

Bank to forecast global real GDP growth to slow to 2.3% in 2025. enterprises are well-positioned to develop a highly efficient

Despite the turbulent global trading environment Asia has multi-node Pan-Asian logistics corridor – enhancing their ability to

demonstrated remarkable economic resilience and has solidified its deliver comprehensive end-to-end solutions for regional customers.pivotal role in global supply chains. The International Monetary Fund Furthermore the integrated deployment of air and ocean freight

anticipates that growth in Asian emerging markets and developing capacity alongside overseas warehousing is fundamental to building

economies will reach 4.5% in 2025 significantly surpassing global robust cross-border fulfillment capabilities. In response to the rising

average. As a manufacturing hub and emerging consumption demands of cross-border e-commerce for time definiteness and

market Asia’s role in global supply chains continues to strengthen. cost efficiency Chinese logistics service providers are leveraging

The Regional Comprehensive Economic Partnership (RCEP) has self-operated air cargo fleet block space agreements and globallyfurther accelerated regional trade and investment flows particularly distributed warehouse networks to establish “air and sea freight +in electronics textiles and automotive parts solidifying Asia overseas warehouses” integrated fulfillment models. These offerings

as a critical hub for multinational corporations’ manufacturing enable customers to achieve best-in-class cross-border fulfillment

diversification and regional procurement strategies. efficiency and cost efficiency. In an increasingly volatile global policy

environment clients are placing greater emphasis on supply chain

China’s foreign trade resilience is robust accompanied by elasticity. As a critical enabler within this ecosystem logistics service

accelerated overseas expansion and strategic shifts by Chinese providers are required not only to offer bespoke scenario-specific

enterprises. solutions but also to demonstrate strong adaptability to regulatory

Despite numerous external challenges China’s foreign trade dynamics and operational resilience at a global scale. Chinese

maintained positive growth momentum reflecting its strong logistics enterprises that combine cross-border capabilities with

resilience. According to the data from the General Administration localized services are well-positioned to differentiate themselves

of Customs of the PRC the total value of China’s goods imports in the global market – empowering Chinese companies in their

and exports grew by 2.9% year-on-year in the first half of 2025 with international expansion and serving as a vital link between global

exports rising by 7.2% year-on-year. In terms of the structure of manufacturing and consumption.trading partners export growth to regions including Southeast Asia

the Middle East and the European Union demonstrated notable Business Strategy

strength. In terms of categories exports of electromechanical

In the first half of 2025 four themes defined SF’s trajectory —

products rose to 60% of total exports with high-end equipment

resilience breakthrough cohesion and expansion.exports increasing over 20%. Meanwhile the “new trio” – new

energy vehicles photovoltaic modules and lithium batteries – Confronting a complex and volatile domestic and international

collectively achieved export growth exceeding 30% year-on-year macroeconomic environment the Company adhered to the business

becoming new engines of foreign trade growth. principle of “Sustainable and Healthy Development” underpinned

by a robust operating foundation and diversified product portfolio

Amid evolving international trade policies and overseas market

flexibly responded to market volatility. Notwithstanding the

entry requirements Chinese enterprises’ overseas expansion

increasingly competitive market trends the Company continued

is characterized by simultaneous acceleration and strategic

to strengthen the resilience of its growth pursued a differentiated

realignment. Companies are intensifying capacity expansion abroad

product strategy to stand out among the peers and delivered solid

establishing factories in Southeast Asia South Asia the Middle

results. In parallel the Company advanced its organizationally-wide

East and Latin America particularly in new energy household

upgrade centered on “Stimulate Operation Vitality” strategy

appliances construction materials and textiles sectors fostering

mobilizing enterprise-wide momentum to rapidly accelerate its

localized global supply chains. Concurrently tightening policies in

penetration of emerging industry scenarios and new overseas

Europe and the United States have prompted Chinese enterprises

markets. Leveraging its proven product capabilities premium

to prioritize brand development and enhance localized operations

and strong brand equity the Company remains committed to

capabilities. Cross-border e-commerce companies have expanded

consistently creating value for its customers as well as works

their overseas presence and local warehousing and fulfillment

closely with its customers to mitigate market risks and navigate

networks to mitigate policy risks and expand local market influence.economic cycles.Interim Report 2025 S.F. Holding Co. Ltd. 015

Management Discussion and Analysis

015

Deepening stimulate operation vitality strategy unleashing replication of standardized product portfolios to accelerate its

organizational potential to drive high-quality growth. industry-specific strategy. In the international market the Company

is investing further in cross-border transportation customsThe Company deepened the implementation of its “Stimulateclearance capabilities and overseas localization resources therebyOperation Vitality” strategy refining supporting mechanisms. In

strengthening its global network coverage and service capabilities

the first half of 2025 the Company focused on core teams such

to support the execution of its long-term “second growth curve”

as sales personnel couriers service outlets sorting centers

strategy. Step by step the Company is building a differentiated

and headquarters staff. By optimizing authorization incentive

and specialized network tailored to various business scenarios

reward punishment and evaluation mechanisms the Company

reinforcing both its product and sales infrastructure expanding

promoted organizational transformation and energized individual

business boundaries and sustaining its competitive leadership in

initiative. For frontline business units substantial marketing

the market.autonomy was granted to stimulate business expansion. For

backend operations and functional departments the Company Accelerated industry-specific transformation boosts market

streamlined organizational structures implemented flat management share across multiple sectors.approaches optimized compensation structures and introduced

The Company’s strategic shift towards an industry-specific model

performance-based incentives to closely link operational results

accelerated significantly in 2024 transitioning from selling standard

to individual rewards. Additionally differentiated incentives drove

products to delivering customized solutions. In the first half of

high-quality business development ensuring a healthy business

2025 dedicated industry-specific departments were established

structure while a robust risk control system established clear

to handle business planning solution development service

reward and penalty mechanisms focused on customer experience

standardization and iterative enhancements fostering capabilities

service quality and operational compliance safeguarding healthy

for industry-specific solutions and standardized product portfolio.growth amid rapid expansion.Concurrently operational infrastructures tailored to industry

Enhancing efficiency and reducing costs to fulfill market characteristics were established to support scaled logistics revenue

breakthroughs upgrading the operational networks to forge growth across various sectors.sustainable competitive edges.During the first half of 2025 the Company achieved breakthroughs

Adhering to the principles of lean management the Company in expanding upstream and downstream supply chain scenarios for

continues to optimize its operating model streamline its network customers across numerous industries empowering clients with

and flexibly integrate internal and external resources to drive digital and intelligent technologies to establish efficient flexible

structural cost reductions. Through the technological empowerment domestic and international supply chains. In consumption sectors

of intelligent and unmanned technologies across the end-to-end the Company offered comprehensive omni-channel logistics

logistics value chain the Company has significantly enhanced solutions high-efficiency national warehousing and intra-city

operational efficiency enabling highly efficient operations amid on-demand delivery for instant retail and cross-border air-sea

large-scale business expansion. As lean management initiatives freight with local overseas operations helping clients capture

progress the Company’s structural improvements in network emerging consumption trends and penetrate new markets. In

efficiency and cost optimization have begun to yield tangible results. industrial manufacturing sectors the Company provided end-to-end

The benefits from cost optimization are reinvested into front-end domestic and international logistics services covering inbound

business development enhancing product competitiveness in the logistics production sales and after-sales meeting immediate

market and increasing incentives for frontline revenue generation production needs and flexible supply chain demands in high-end

thereby expanding market share and propelling the Company manufacturing through efficient air freight and reliable logistics

toward business growth that outpaces the industry. services thus supporting industrial upgrades. In the first half of

2025 the Company’s logistics revenue in the consumer goods

At the same time the Company continues to upgrade its

automotive industrial equipment and telecommunications and

operational networks to reinforce long-term core competitiveness.high-tech sectors grew by over 20%. The successful implementation

In terms of standardized product it has maintained its premium

of the industry-specific strategy significantly increased the

services and market leadership by securing critical air transport

Company’s market share in key industries.resources investing in direct line-haul routes and transit speed

enhancements expanding coverage for large parcel and LTL Anchoring in Asia advancing sustainable development with

networks strengthening channel penetration and increasing the one in Asia strategy.customer touchpoints across key scenarios. In terms of

Focusing on its “The One in Asia globally connected” strategy the

non-standard products leveraging experience derived from

Company seized opportunities from Chinese enterprises’ overseas

solution implementation for leading customers across industries

expansion in products production capacity and cross-border

the Company has developed standardized product portfolios

consumption offering customers highly reliable standardized

tailored to specific supply chain scenarios while concurrently

logistics products and comprehensive supply chain solutions

investing resources to build logistics operating infrastructures that

aspiring to become their preferred logistics partner for global

cater to the unique needs of each industry. It has also expanded

expansion.its pool of industry-focused sales talent enabling large-scale016 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

In the first half of 2025 the Company enhanced its global 2) Supply chain and international business recorded revenue of

capabilities through intensified global air network connections RMB34.2 billion representing an increase of 9.7% year-on-year.upgraded customs clearance capabilities and expanded overseas Despite a complex and volatile global trade policy environment in

warehousing comprehensively strengthening cross-border the second quarter in 2025 which affected the growth rate for its

fulfillment capacities. Its international express services to key international freight forwarding services the Company capitalized on

Asia-Pacific countries and Europe and America achieved top-three its comprehensive global network diversified international product

global standards in terms of time definiteness. Leveraging its offerings and localized operations in key countries to seize new

competitive edges in cross-border air and sea freight and overseas opportunities arising from the international expansion of Chinese

warehouses the Company served numerous mid-to-high-end enterprises. This enabled the Company to help customers build

enterprises and cross-border e-commerce customers flexibly agile international supply chains mitigate market fluctuations and

adapting to global trade dynamics and challenges thus facilitating achieve stable business growth. 3) Other non-logistics businesses

Chinese brands’ global expansion. Specifically cross-border recorded revenue of RMB3.3 billion primarily attributable to the

e-commerce logistics revenue from China to Europe doubled trading of raw materials and equipment embedded within the

year-on-year in the first half of 2025. Company’s end-to-end supply chain service offerings.Additionally leveraging strategic resource advantages an extensive In terms of gross profit: the Company recorded a gross profit

product offering portfolio advanced digital technologies and of RMB19.1 billion in the first half of 2025 representing a year-

combining KLN’s cross-border and local service capabilities on-year increase of 4.1%. The Company’s gross profit margin

in Asia the Company effectively addressed complexities in was 13.0% in the first half of 2025 representing a year-on-year

cross-border logistics offering stable efficient international supply decrease of 0.6 percentage point. Confronted with intensifying

chain solutions. The Company further strengthened end-to-end competition in the domestic express delivery industry and the

cross-border and local operational capabilities across Southeast volatility in the international trade environment on the one hand

and South Asia via air sea and land transportation customs the Company continued to optimize its cost structure by adopting

clearance and local delivery. Services included raw material flexible business strategies to expand business scale and improve

transportation overseas warehousing of semi-finished products network capacity thus improving asset utilization efficiency and

and spare parts and finished goods export for industries such as diluting fixed costs. Meanwhile the Company leveraged scale

apparel telecommunications and high-tech industrial equipment effect to enhance direct transportation routes streamlined transit

automotive and new energy supporting production capacity nodes as well as promoted operating model innovation. These

expansion overseas. As of June 30 2025 over 95% of the Fortune efforts led to continuous structural improvements in network

China 500 companies have partnered with SF and more than 60% efficiency and cost reductions. On the other hand building on the

of the Fortune China 500 companies utilized SF’s international reinforcement of its standardized network to support its operations

logistics services. the Company increased its investment in strategic resources to

press ahead with the implementation of its strategic priorities

Financial Review — industry-specific transformation and globalization to cultivate

long-term core competitiveness. The aforementioned measures had

In the first half of 2025 leveraging multiple strategic initiatives — a short-term impact on the gross profit margin but the Company

including stimulating operation vitality accelerating penetration still maintained steady growth in gross profit while achieving growth

across key industries and focused expansion in both new domestic for market share and strategic capabilities.and international markets the Company shined out in market

competition and achieved robust growth in business scale. In the In terms of expenses: driven by the Company’s continued efforts in

first half of 2025 the Company achieved revenue of RMB146.9 strengthening lean management and enhancing efficiency through

billion representing a year-on-year increase of 9.3%. During the technological empowerment the general and administrative

same period total parcel volume of the Company amounted to 7.85 expense ratio and R&D expense ratio decreased by 0.5 and 0.2

billion representing an increase of 25.7% year-on-year outpacing percentage point respectively in the first half of 2025. During the

the overall growth rate of the express delivery industry. same period the net finance cost ratio of the Company decreased

slightly. The selling and distribution expense ratio increased slightly

In terms of revenue by business segment: 1) Express logistics by 0.1 percentage point primarily due to the Company’s enhanced

business recorded revenue of RMB109.3 billion representing efforts in building its sales team to support the expansion of its

a year-on-year increase of 10.4%. Notably the second quarter industry-specific solutions and international business.witnessed an acceleration in revenue growth rate compared to

that in the first quarter in 2025. This was primarily driven by the In summary the Company delivered steady growth in the first half

Company’s continued enhancement of its product portfolio and of 2025: profit attributable to owners of the Company was RMB5.74

service competitiveness which allowed it to deepen its penetration billion representing an increase of 19.4% year-on-year and the

into end-to-end logistics scenarios across the manufacturing and net profit margin attributable to owners of the Company was 3.9%

consumer scenarios leading to steady business scale expansion. representing an increase of 0.3 percentage point year-on-year.Interim Report 2025 S.F. Holding Co. Ltd. 017

Management Discussion and Analysis

017

In terms of capital structure as of the end of the Reporting Period significant improvements in both sales volume and repeat purchase

the Company’s total assets amounted to RMB218.2 billion and rates. In the health supplements segment the Company provided

equity attributable to owners of the Company reached RMB95.4 an integrated temperature-controlled warehousing and distribution

billion. The asset-liability ratio decreased to 51.35% from 52.14% as solution tailored to both B2B and B2C needs for a prominent

of December 31 2024 representing a decrease of 0.79 percentage traditional wellness brand. This end-to-end solution effectively

point reflecting a continued solid financial position. The Company’s addressed the challenges of multi-temperature requirements high

weighted average return on net assets in the first half of 2025 was SKU complexity and peak order volumes. It enabled direct delivery

6.07% representing an increase of 0.84 percentage point from of freshly prepared products from origin to consumer and offered

the same period last year. At the same time operating cash flow seamless fulfillment services for ambient and frozen goods thereby

remained strong with net cash inflow from operating activities enhancing delivery efficiency and product freshness across diverse

reaching RMB12.9 billion; and free cash inflow of the Company consumption scenarios.amounted to RMB8.74 billion representing a year-on-year increase

In the automotive sector the Company continued to strengthen

of 6.1%.its logistics capabilities across the full spectrum of this industry

Looking ahead the Company will continue to invest key resources covering passenger vehicles commercial vehicles and the

that align with its strategic initiatives to enhance its long-term automotive aftermarket. In the passenger vehicle segment the

core competitive edges and will continue to enhance its domestic Company offered end-to-end supply chain services encompassing

and international integrated logistics networks. In addition domestic and cross-border inbound logistics in-plant logistics

the Company will focus on return on assets adhere to lean finished vehicle distribution and after-sales parts delivery. During

management to improve resource utilization efficiency. Moreover the first half of 2025 the Company was awarded a major inbound

capital expenditures as a percentage of revenue are expected to logistics project by a leading domestic automotive manufacturer and

remain within a healthy and sustainable range. secured several spare parts allocation contracts from new energy

vehicle makers underscoring its growing role in supporting the

Business Development of the Company evolving mobility ecosystem. In the commercial vehicle segment

the Company expanded its logistics services beyond production

logistics to include full-vehicle transportation. It introduced

Accelerating Industry-Specific Transformation innovative drive-away delivery solutions for new vehicles and

to Strengthen Market Leadership Across successfully secured contracts from multiple commercial vehicle

Sectors OEMs reinforcing its leadership in new vehicle fulfillment. In the

automotive aftermarket segment the Company deepened itsThe Company deepened the implementation of its “Accelerating partnership with a top-tier domestic service provider by expandingIndustry-Specific Transformation” strategy expediting its shift from beyond warehousing and transportation to offer proximity-based

a standard-product-centric model to an industry solution-oriented last-mile logistics solutions. Together the two parties established a

approach. By refining its operating models and advancing digital network of 600 forward distribution centers. Leveraging intelligent

and intelligent capabilities the Company developed integrated order dispatch systems and intra-city instant delivery capabilities

logistics solutions and standardized product portfolios tailored to the Company enabled one-hour fulfillment of a wide range of spare

the distinct needs of different industries and application scenarios. parts and maintenance supplies to end-point retail and service

Concurrently the Company built specialized talent teams and outlets.implemented targeted empowerment and incentive mechanisms

to support deeper penetration into customers’ supply chains In the industrial equipment sector the Company achieved

across a range of sectors. These efforts contributed to sustained significant breakthroughs therein covering a broad range of verticals

growth in logistics market share. In the first half of 2025 logistics including raw materials heavy machinery intelligent manufacturing

revenue in the consumer goods automotive industrial equipment and energy and chemicals. For spare parts logistics the Company

and telecommunications and high-tech sectors grew by over 20% provided integrated digitalized solutions featuring intelligent

year-on-year. warehouse networks and full-scenario fulfillment capabilities. These

offerings enabled high-efficiency high-reliability logistics services for

In the consumer goods sector the Company provided specialized major equipment manufacturers including those in the new energy

logistics support across multiple subsegments including cosmetics and elevator manufacturing sectors. For cross-border delivery

and personal care health supplements pet food and supplies the Company offered comprehensive solutions encompassing

maternal and infant products and snack foods. By keenly attuning to door-to-port door-to-door overseas warehousing and distribution

shifting consumption trends the Company enabled its customers to services tailored to the needs of industrial equipment manufacturers

enhance operational efficiency lower logistics costs and accelerate supporting Chinese manufacturers’ global expansion. To address

access to end consumers. In the cosmetics and personal care oversized and customized delivery needs the Company delivered

segment the Company focused on delivering benchmark logistics project-based operations digital systems and green logistics

solutions to several leading brands and subsequently replicated solutions successfully assisting a global industrial leader in

these best practices across a new wave of domestic emerging upgrading its logistics digitalization.brands. Notably the Company helped a rising Chinese cosmetics

brand elevate its logistics service ratings which in turn drove018 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

In the telecommunications and high-tech sector the Time-Definite Express

Company continued to deepen its capabilities in serving key

verticals therein including optics and optoelectronics consumer In the first half of 2025 the Company’s time-definite express

electronics communications and computing equipment and business achieved a tax-exclusive revenue of RMB63.23 billion

telecommunications operators. With a particular focus on representing a year-on-year increase of 6.8% with parcel

cross-border supply chain solutions the Company accelerated volume increasing by 18.6% year-on-year.its support for the global manufacturing and distribution strategies As the driver of consumer behavior in China evolves from a

of leading technology enterprises. For the export logistics of raw traffic-based to a scenario-based model and with emerging

materials for consumer electronics the Company reinforced its industries advancing toward higher levels of sophistication and

outbound transport capacity from China to strategic manufacturing intelligence the demand for diversified efficient and seamless

hubs such as India Vietnam and Malaysia. Partnering with logistics services is rapidly increasing. In response to these

several of the world’s leading ODMs the Company delivered structural shifts the Company has reinforced its leadership in

comprehensive services encompassing raw material consolidation the time-definite express segment by continuously sharpening

and distribution cross-border multimodal transportation expedited its product competitiveness and deepening penetration across a

customs clearance and integrated overseas warehousing and broad spectrum of production and consumption scenarios. These

delivery. These services were underpinned by an end-to-end digital efforts were aimed at delivering a superior and differentiated service

logistics information management platform enabling full-process experience. Concurrently the Company has provided frontlines with

visibility and control to support customers’ global production higher level of authority and operational flexibility while deploying

deployment with high efficiency and precision. For the import of dynamic marketing strategies and incentive-driven mechanisms.large-scale electronics manufacturing equipment the Company These initiatives have collectively accelerated market expansion

continued to enhance its inbound logistics capabilities from Japan and contributed to sustained growth in the scale of its time-definite

South Korea Singapore and other key markets. Leveraging the express business.strategic advantages of the Ezhou cargo hub the Company

provided one-stop logistics solutions that included cross-border air Elevating Top-of-Mind Brand Equity Through Premium Services

freight seamless international-to-domestic air transit and last-mile and Market-Leading Experience: The Company has continued to

delivery. enhance its end-to-end service capabilities deploying an optimized

combination of air high-speed rail and ground transportation

In the e-commerce and circulation sector the Company served resources to deliver its flagship “Exclusive Same-Day” product

a wide-ranging clientele encompassing traditional comprehensive — a lighthouse product that provides minute-level high-speed

e-commerce platforms livestream and video commerce channels and premium delivery services. This industry-leading service

independent direct-to-consumer websites and offline supermarket not only strengthens brand recognition but also reinforces

chains. Leveraging its extensive logistics infrastructure the the Company’s positioning as a premium logistics provider

Company provided multi-scenario logistics services including in the minds of consumers. Leveraging advanced digital and

nationwide integrated warehousing and distribution instant retail intelligent technologies regional business units are empowered

fulfillment cross-border air freight and sea freight combined with to proactively identify customer needs and emerging demand

overseas warehousing solutions. During the first half of 2025 the enabling the execution of targeted scenario-specific marketing

Company partnered with a leading comprehensive e-commerce strategies. Through agile resource allocation the Company offers

platform to launch a high-end logistics offering — “Speedy Doorstep value-added “land-to-air” service upgrades significantly enhancingDelivery”. This service which established its presence in over 300 customers’ perceived value and continuously strengthening product

cities across China was supported by a dedicated transportation competitiveness.channel that prioritized delivery operations ensuring consumers

enjoyed significantly faster receiving and greater service stability. Accelerating Multi-Channel Expansion and Scenario-Based

This enhanced logistics experience not only improved customer Ecosystem Development: The Company has accelerated the

satisfaction but also fostered a virtuous cycle of increased build-out of a diversified channel ecosystem by leveraging flexible

operational efficiency elevated user experience and sustained business models and resource portfolios to deepen its presence

sales growth for merchants. across a wide range of high-potential scenarios including CBDs

residential communities university campuses supermarkets

cultural and tourism destinations hospitals and rural townships.These efforts have enabled the Company to unlock scenario-specific

demands and cultivate a more refined and adaptive operational

ecosystem. In CBDs and residential communities sector

the Company has increased the density of service outlets andInterim Report 2025 S.F. Holding Co. Ltd. 019

Management Discussion and Analysis

019

integrated seamlessly into commercial and residential building Strategic Development of the Ezhou Cargo Hub – Advancing

ecosystems. These service offerings extend beyond conventional a Global Logistics Gateway: The Ezhou cargo hub is being

express delivery to provide one-stop full-scenario logistics strategically developed into a world-class logistics platformsolutions thereby enhancing customer experience and fostering underpinned by an integrated “hub-and-spoke air networkstronger user engagement and loyalty. In the supermarkets multimodal transport system and intelligent logistics infrastructure”

sector the Company expanded its strategic collaboration with and is playing a critical role in accelerating industrial upgrading. As

a prominent national retail chain. What began as in-store pickup of June 30 2025 the Company had launched 59 domestic and

services has progressively evolved into a comprehensive suite 19 international air routes from the Ezhou cargo hub. Leveraging

of value-added services including daigou business on-demand the capabilities of the Ezhou cargo hub several leading global 3C

delivery and end-to-end integrated warehousing and fulfillment brands have implemented ultra-efficient warehousing and fulfillment

across online and offline channels — significantly improving solutions while premium and intelligent manufacturing companies

consumer convenience and optimizing retail logistics efficiency. have established regional centers for processing spare parts

In the cultural and tourism destinations sector the Company management repair and reverse logistics. The Ezhou cargo hub

forged a multi-year strategic alliance with Shanghai Disney Resort is also emerging as an “aerial gateway” for Chinese enterprises

to deliver a tailored comprehensive suite of end-to-end logistics pursuing global expansion supported by a growing network of

solutions. These include in-resort parcel drop-off services facilitated premium outbound routes that enable the international delivery

through QR code scanning at retail stores integrated delivery of high-value “China smart manufacturing” products. With its fast

for purchases made both online and on-site and dedicated and seamless air-to-air transshipment capabilities highly efficient

solutions addressing corporate delivery and express needs. These all-in-one international cargo terminals and the formal launch

logistics capabilities are further underpinned by the Company’s of a cross-border e-commerce pilot zone the Ezhou cargo hub

proprietary technologies which will support the theme park’s daily is delivering exceptional logistics performance that continues to

operations and enhance both the visitor experience and theme attract new trade flows and industrial clustering. As a result it is

park’s operational efficiency. Looking ahead the Company plans to increasingly recognized as a critical gateway to global markets and

replicate capabilities and experience derived from such integrated a powerful engine driving incremental growth in the Company’s air

solution across other leading theme parks in China and globally freight business.serving as a blueprint for broader business expansion among

cultural and tourism destinations. Economy Express

Efficient Air Freight Capabilities and Visionary Cargo Hub In the first half of 2025 the Company’s economy express

Layout to Empower China’s Industrial Upgrading. The Company business achieved a tax-exclusive revenue of RMB15.16 billion

has continued to elevate its air freight capabilities particularly for representing a year-on-year increase of 14.4% with a 29.6%

large-parcel delivery positioning itself as a key enabler of industrial year-on-year growth in parcel volume.upgrading for high-value manufacturing sectors. By enhancing

both time efficiency and cost competitiveness the Company Amidst a shift in consumer behavior in the e-commerce sector

is delivering increasingly differentiated services tailored to the toward greater rationality and value-for-money the intensity of

evolving needs of industrial customers. On the transportation market competition in the e-commerce express delivery industry

front the Company strategically leverages a hybrid capacity has been increased. Against this backdrop the Company

model comprising dedicated charter flights and flexible access to adhered to a differentiated strategy focusing on its competitive

commercial cargo space. In parallel it has expanded its network strengths and optimizing its operational model to enhance service

of dedicated smart sorting centers to 31 locations and established competitiveness. These efforts led to a scalable growth in economy

direct pickup and delivery links between customer sites and airports express services during the period significantly outperforming

in 174 cities. This comprehensive network significantly reduces industry averages.the fulfillment cost of large-parcel air delivery while significantly By setting service excellence as the industry benchmark

improving next-day delivery performance. To support urgent and and enhancing product value-for-money the Company has

mission-critical logistics needs the Company has upgraded its effectively expanded its business scale. The Company pursued

portfolio of customized products and value-added services — a dual approach of premium service delivery and cost-efficiency

offering dedicated vehicle dispatch nighttime pickup and delivery reinvestment to drive scale. On one hand the Company deepened

and expedited intercity transfers. For example time-sensitive its collaboration with leading e-commerce platforms by establishing

delivery can be transported from origin to production line within new industry benchmarks in service excellence and fulfillment

seven hours across cities. Additionally the Company provides reliability thereby elevating end-user satisfaction and empowering

tailored air freight solutions for complex shipment types including merchants to unlock incremental sales growth. This helped shift

bulk industrial goods oversized and overweight items and sensitive industry competition from price-driven to service-led reinforcing

cargo such as magnetized or battery-powered 3C products and the Company’s competitive advantages in e-commerce logistics.mechanical equipment — further demonstrating its commitment to On the other hand the Company continued to bolster its cost

operational excellence and industry-specific logistics innovation. competitiveness by optimizing end-to-end operational processes020 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

empowering decision-making with advanced technology and synergies and incremental revenue growth. More importantly

aligning resources precisely across operations. This enhanced the these capabilities enabled brand customers to accelerate inventory

Company’s product value-for-money while strengthening market turnover enhance product circulation efficiency and thus alleviating

competitiveness thereby increasing customer stickiness. downstream inventory pressure.Enhanced Integrated Warehousing and Distribution

Capabilities Supporting Deeper Penetration Across Industries: Freight

The Company continued to enhance its integrated warehousing In the first half of 2025 the Company’s freight business

and distribution capabilities by establishing a tiered time-definite achieved a tax-exclusive revenue of RMB19.57 billion

warehouse network advancing warehouse automation and representing a year-on-year increase of 11.5% with cargo

improving synergistic effect among warehousing and delivery volume increased by 28% compared to the same period last

networks. Collectively these enhancements empowered the year.Company to deliver efficient reliable and differentiated fulfillment

services tailored to the nuanced requirements arising from various Amid continued industrial transformation and upgrading the

industry scenarios. rapid and prosperous development of high-end manufacturing

and continuing deeper e-commerce penetration in large item

Omni-Channel Unified Logistics Solutions: Leveraging its position customer demand for freight delivery services that are time-definite

as an independent third-party logistics provider the Company high-quality and tailored to specific industry needs has grown

continued to deliver sophisticated omni-channel unified logistics significantly. In response competition among freight delivery

solutions tailored to the evolving needs of customers across diverse providers has increasingly centered on product enhancement

industries. Through deep industry insight customized solution resource integration and network strengthening. Leading

design and full-chain technological capabilities the Company enterprises have continued to expand market share by capitalizing

enabled seamless integration of online and offline fulfillment on their combined advantages in service quality and cost efficiency

channels. In the first half of 2025 the Company successfully thereby accelerating industry consolidation.completed the deployment and delivery of fully automated flagship

warehouses for leading brands in the home appliance and cosmetics SF Freight adheres to a customer-centric service philosophy and

sectors. These benchmark warehouses supported unified inventory continues to pursue operational excellence across key areas such

management across both 2B and 2C channels enabling real-time as network planning technology empowerment and operational

visibility and end-to-end supply chain integration. As a result management. By integrating external resources to optimize network

customers benefited from enhanced inventory efficiency improved coverage the Company has successfully reduced unit costs per

fulfillment precision and a significant reduction in operational costs. kilogram thereby enhancing customers’ overall cost efficiency.By offering precisely matched multi-tiered and differentiated

In the emerging proximity-based e-commerce segment the service offerings for its customers SF Freight has sustained

Company actively explores and deepens partnerships with leading industry-leading growth in volume.platforms in on-demand retail scenarios. Leveraging a tightly

coordinated network of regional distribution centers and pre- Strengthening Competitive Edges in the Mid-to-High-End

positioned forward warehouses the Company provides multi-tier Ground Large Parcel Market. The Company continued to

time-definite fulfillment — ranging from instant to same-day and enhance its time-definite delivery network for ground large parcels

next-day delivery services. emphasizing the core pillars of speed precision and stability.During the first half of 2025 the Company accelerated service

Professional Logistic Solutions for Industrial Clusters: Focusing capabilities across major trunk routes upgrading delivery speeds

on core production and sales cities and specialized industrial on over 1000 key routes. Concurrently the Company introduced

clusters in sectors such as apparel footwear and consumer more granular time-definite product offerings to reinforce serviceelectronics the Company developed industry-specific warehouses reliability including a diversified portfolio such as “Same-Day Arrivalto deliver high-efficiency professional-grade services tailored to for Bulky and Heavy Cargo” and “Next-Morning Arrival for Bulky andindustry needs. In the apparel and footwear segment the Company Heavy Cargo” to meet the sophisticated needs of mid-to-high-end

pioneered the development of multi-brand shared return and repair market segments. In addition the Company expanded its

centers setting a new benchmark for integrated value-added differentiated service capabilities across both consumer and

services. These centers extended beyond basic quality inspections industrial scenarios — offering integrated 2C services such as

to include advanced services such as label verification garment disassembly inspection installation and door-to-door delivery for

steaming and cleaning and sole separation repair catering to a furniture and home appliances as well as 2B services including

wide spectrum of post-sale logistics requirements. By integrating point-to-point deliveries between warehouses and factories. These

professional-grade repair management with high-quality express initiatives have significantly enhanced end-user experience while

fulfillment the Company achieved greater internal resource driving operational efficiency for enterprise customers.Interim Report 2025 S.F. Holding Co. Ltd. 021

Management Discussion and Analysis

021

Building a Highly Competitive LTL Network for the Industrial China’s domestic cold chain logistics market continued on a

Sector. The Company focused on addressing the logistics trajectory of stable growth as shifting consumption patterns placed

needs of the industrial sector by optimizing its LTL network increasing demands on service timeliness cost efficiency and

infrastructure refining operating models and allocating resources network sophistication. The rapid rise of fresh food e-commerce

more strategically. These efforts enabled the establishment of a and the boom in instant retail have fueled nationwide demand for

high-efficiency cost-effective LTL network specifically tailored fast fulfillment of integrated cold chain warehousing and distribution

for large-volume industrial delivery. Leveraging its partnership capabilities. At the same time the expansion of chain restaurants

with a leading service provider in the heavy cargo LTL market into lower-tier cities and the growing footprint of large-format

the Company integrated over 10000 long-haul routes across supermarket stores have created additional growth opportunities

both networks. This integration significantly straightened transit in network-based LTL cold chain logistics and store distribution

paths and reduced intermediate relay nodes resulting in notable services. In response the Company has closely aligned with

improvements in delivery speed and substantial reductions in emerging market dynamics deeply integrating internal resources

logistics costs for industrial customers. To further strengthen and enhancing its nationwide cold chain network. These efforts

its capabilities in the industrial sector the Company enhanced have significantly improved the Company’s ability to meet evolving

last-mile delivery infrastructure within key industrial zones including customer needs and have driven rapid and high-quality business

the upgrade of vehicles and delivery tools to support oversized growth across its cold chain operations.shipment handling. At the same time the Company drew on deep

industry insight to balance standardized operational procedures Fresh and Seasonal Food Logistics Services

with the flexibility required to meet diverse and evolving customer

needs. During the first half of 2025 the cargo volume for industrial SF has played a pivotal role in facilitating the direct delivery of

large item weighing above 100 kilograms recorded a year-on-year agricultural products from production sites to end consumers. As of

increase of over 50%. From a sectoral perspective cargo volume the end of the first half of 2025 the Company’s services extended

in the industrial equipment segment more than doubled year-on- across more than 2800 county-level cities in China and supported

year while the communications and high-tech sector witnessed the logistics of over 5500 categories of fresh agricultural products

a year-on-year increase of over 50% and the automotive sector nationwide. During the period SF transported over four million

achieved over 40% growth year-on-year. These results underscore tonnes of specialty agricultural products significantly contributing

the Company’s strengthened competitiveness and growing to the modernization of China’s agricultural sector and supporting

penetration within key industrial verticals. rural revitalization by helping farmers generating income exceeding

one hundred billion RMB.Strengthening the Franchise Network to Drive Sustained and

Scalable Growth. SX Freight continued to solidify the foundation Centering on the harvest season of seasonal fruits in the first half

of its franchise network leveraging its competitive edges in product of 2025 the Company mobilized dedicated resources to support

capabilities and cost efficiency to support steady expansion. As of both domestic sales and cross-border export of fresh produce.June 30 2025 the SX Freight recorded over 22000 service outlets Taking lychees as an example the Company deployed over

achieving a township-level coverage rate of 86.3% and maintained 1100 dedicated cargo flights in Southern China covering major

a top-three market share in China’s franchised freight sector. SX cities across China. To further enhance accessibility at the origin

Freight focused on developing core offerings for the e-commerce over 4000 pickup outlets were established in production areas

large item market and by streamlining routes it has successfully providing growers with convenient and efficient shipping services.shortened average delivery time by 5.9 hours. At the same time By accelerating the entire logistics chain and ensuring full-process

it integrated internal resources and facilitated channel sharing to cold chain temperature control the Company guaranteed fresher

solidify LTL service network for large-item which further supported arrivals and elevated the consumer experience. Meanwhile the

steady and scalable growth. In addition SX Freight maintained Company orchestrated several targeted promotional campaigns

close collaboration with SF Freight to achieve complementary and partnered with more than hundreds of media outlets to

synergies. This integrated approach not only help increase parcel boost brand visibility and strengthen market linkages between

volume but also drove continual improvements in operational production and consumption. Globally the Company leveraged its

efficiency and profitability. Through reliable efficient and premium proprietary air freight network and cold chain capabilities to pioneer

logistics services SX Freight delivered multi-stakeholder value direct “air corridors” for lychees to the Middle East Europe and

creation achieving win-win outcomes for customers franchise Southeast Asia. This initiative enabled over 100 tonnes of lychees

partners and the Company. to be delivered from orchard to overseas shelves within 48 hours

marking a new milestone in global agricultural logistics. Guided byCold Chain and Pharmaceutical Logistics the principle of “quality-driven agriculture empowered by brandbuilding” the Company remains committed to enhancing the

In the first half of 2025 the Company’s cold chain and quality and efficiency of the agricultural supply chain — supporting

pharmaceutical logistics business achieved a tax-exclusive the industry’s transformation from volume-driven to value-driven

revenue of RMB5.84 billion representing a year-on-year growth and creating shared value for both business growth and

increase of 15.3%. social values.022 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Food Cold Chain Logistics Services Intra-City On-Demand Delivery

SF Cold Chain remained focused on five core logistics scenarios In the first half of 2025 the Company’s intra-city on-demand

— integrated warehousing and distribution large item B2C delivery business achieved a tax-exclusive revenue of RMB5.49

fulfillment store delivery and cross-border cold chain solutions. billion representing a year-on-year increase of 38.9%. Order

By continuously enhancing its cold chain network capabilities the volume for intra-city on-demand delivery services increased by more

Company delivered high-quality end-to-end cold chain logistics than 50% year-on-year continuously unleashing network scale

services that effectively addressed the evolving needs of both effects. Together with highly efficient digital intelligence capabilities

production-side and consumer-facing markets ensuring reliability and refined operational management the net profit of the intra-city

freshness and efficiency across the entire value chain. on-demand delivery segment continued to doubled year-on-year.To better capture the growth potential of the fresh produce High-quality services drove simultaneous growth in business

e-commerce market the Company significantly strengthened scale for both merchants and consumers fostering the

its integrated warehousing and fulfillment capabilities enabling balanced development across business structures.later order cut-off times faster fulfillment efficiency and broader

next-day delivery coverage. In collaboration with emerging In terms of merchant cooperation SF Intra-city consolidated

e-commerce platforms SF Cold Chain provided integrated and deepened its service advantages with major key customers

warehousing and distribution services with fresh next-day delivery maintaining a leading market share with multiple top-tier key

for merchants in the fresh frozen and produce categories. Through customers. At the same time the Company expanded cooperation

nationwide distributed warehouses plus integrated warehousing with small and medium-sized merchants and enhanced retention

and distribution it can realize next-day delivery in over 260 through merchant operations and smart marketing strategies.cities and the Company enabled order placement as late as Leveraging a neutral and open market positioning the Company

23:59 for some in-warehouse products. Meanwhile the Company further deepened cooperation with major traffic platforms fully

continued to enhance its LTL cold chain network by leveraging covering local lifestyle service scenarios such as food delivery

temperature-controlled container technology in conjunction on-demand retail livestream e-commerce and private domain retail

with its express delivery infrastructure expanding end-to-end to meet the continuously growing demand for on-demand delivery

large-parcel cold chain coverage to more than 300 cities. This services across diversified platform business needs. As of June

network enhancement drove a year-on-year revenue increase of 30 2025 the number of annual active merchants over the past 12

over 50% in the large-parcel cold chain segment. In addition months reached 850000 representing a year-on-year increase of

the Company accelerated its expansion into lower-tier markets. 55%. For consumer services SF Intra-city remained committed

By integrating the operational capabilities of SXH China Logistics to delivering industry-leading professional fulfillment servicesand the express delivery network resources the Company offered reinforcing the brand positioning of “SF Intra-city the first choicediversified delivery models and tailored cold chain solutions built for urgent delivery of valuable items” while continuously optimizing

robust network-based store delivery supply chain capabilities and the fulfillment experience for individual consumers to enhance user

helped to unlock new avenues of business growth. satisfaction. In the first half of 2025 the Company boosted revenue

from its high-quality one-on-one “Exclusive Delivery” and mid- to

long-distance “delivery within an hour” through product and service

Pharmaceutical Logistics Services

upgrades and accelerated penetration into lower-tier markets.The Company continued to upgrade its end-to-end precision Revenue from “Exclusive Delivery” products tripled year-on-year

temperature-controlled logistics capabilities for pharmaceutical accurately meeting consumers’ delivery needs for items with

logistics services offering integrated cold chain warehousing and high-value time-sensitive and high safety requirements. Additionally

distribution solutions tailored to both 2B and 2C use cases across by optimizing branding and channel marketing strategies revenue

specialized segments such as bio-pharmaceuticals vaccines from proprietary channels such as the SF Intra-city mini program

IVD and high-value medical consumables. Leveraging proprietary and APP achieved rapid growth and promoted user repurchase.breakthroughs in temperature-control technology and deploying As of June 30 2025 the number of active consumers over the past

more than 8000 additional temperature-controlled containers 12 months reached 24.77 million.the Company significantly expanded its service coverage in

Upgraded network competitiveness with enhanced flexibility

key cities enabling business growth that outpaced the broader

and multi-scenario delivery capabilities.industry. In parallel the Company deepened its presence in the

hospital logistics segment with a focus on enhancing ecosystem In terms of service scenarios SF Intra-city refined product and

penetration and expanding network coverage. Centered on top-tier service offerings in core competitive industries and categories. The

general hospitals and traditional Chinese medicine institutions Company provided centralized multi-channel order management

the Company formulated standardized service SOPs derived from and delivery services for chain restaurant clients to better capture

best-practice benchmarks. By strengthening its business incentive incremental opportunities brought by industry expansion. In the

mechanisms and building dedicated professional service teams the first half of 2025 delivery revenue from multiple leading chain

Company enhanced its capabilities in hospital site development and food and beverage brands saw rapid growth with revenue from

operational execution — further accelerating growth across hospital tea and beverage delivery increased by 105% year-on-year.logistics scenarios. Non-food categories maintained steady growth. Delivery revenue

from non-food delivery scenarios for merchants grew by 35%Interim Report 2025 S.F. Holding Co. Ltd. 023

Management Discussion and Analysis

023

year-on-year. SF Intra-city’s collaboration with leading and regional The Company further strengthened its cross-border fulfillment

chained supermarkets convenience stores and other key clients capabilities by intensifying its global air network enhancing

has continued to expand driving growth in both market share customs clearance capacity and expanding overseas warehousing

and revenue. Categories such as supermarkets and convenience resources.stores pharmaceuticals and maternity and baby products achieved

Building a High-Density Air Network across Asia-Pacific: The

high double-digit year-on-year growth in revenue. In terms of

Company continued to strengthen its global air cargo network.geographic expansion SF Intra-city has now covered over 2300

In the first half of 2025 the Company operated more than 6800

cities and counties nationwide. The average daily order volume in

international cargo flights representing a year-on-year increase of

county-level regions doubled in the first half of 2025. While further

84%. The density of its Asia-Pacific network remained among the

strengthening its footprint in lower-tier markets SF Intra-city

highest in the industry with peak weekly cargo flights reaching

also explored new cross-border business scenarios launching

192. This included up to 72 weekly flights from China to India and

cooperation with a top-tier tea beverage key customer in Hong

14-24 flights each from China to Singapore Malaysia Japan and

Kong. In terms of business district operations both the number

South Korea. Meanwhile the Company advanced its international

of business districts and order density increased and the proportion

air-to-air transshipment model centered on the Ezhou cargo hub

of profitable business districts continued to rise. In addition SF

further enhancing cross-border logistics connectivity.Intra-city strategically collaborated with other segments of the

Group’s to build an integrated supply chain solution encompassing Enhancing Global Customs Clearance Capabilities: In the first

“warehousing + transfer + intra-city on-demand delivery” jointly half of 2025 the Company launched its first self-operated customs

expanding the customer base and customer logistics shared with gateway in Europe at Liège Belgium and introduced simplified

the Group. declaration models for cross-border e-commerce at its Ezhou

cargo hub. As of the end of the Reporting Period the Company

Technology empowerment driving operating efficiency and

provided customs clearance services across 79 ports worldwide

quality enhancement.either through self-operation or agent partnerships. This included

SF Intra-city’s City Logistics System (CLS) enables dynamic and 10 AEO advanced certification licenses in China and 13 overseas

optimal matching between orders and riders across industries ports with self-operated clearance capabilities further enhancing

and scenarios. Through deep integration with AI large models the clearance efficiency of the Company’s parcels.self-developed smart tools have been deployed across rider

Expanding Overseas Warehouse Resources: The Company

management local delivery outlet manager services intelligent

further expanded its overseas warehousing network across

customer service and merchant operations achieving full-process

Asia and Western markets to support both production supply

upgrades in user experience and operational efficiency. In terms

chains and cross-border e-commerce. As of June 30 2025

of rider operation the system continuously optimized the logic

the Company managed warehouses with a GFA exceeding 2.5

of order dispatching and route planning by incorporating factors

million square meters globally including over 2.1 million square

such as riders’ experience adverse weather night shifts and

meters in Asia-Pacific. These facilities including self-owned

peak periods to improve delivery efficiency and riders’ income. In

and partner-operated warehouses span key countries such as

terms of unmanned delivery SF Intra-city actively explored the

Singapore Malaysia Vietnam the Philippines Indonesia Japan

commercial application of smart logistics and unmanned delivery

South Korea and Australia.technologies focusing on unmanned intra-city short-distance

transfers and deliveries between transit hubs and local delivery Backed by strong infrastructure and a comprehensive product

outlets as part of the last-mile delivery service. Through building portfolio the Company effectively orchestrated the complex logistics

and enhancing the “Rider + Unmanned Delivery” network operation chains required for global expansion addressing customers’

capability SF Intra-city promoted the efficiency improvement and growing demand for high-quality cross-border express and supply

strengthened the differentiated competitive advantages. chain services. In the first half of 2025 over 60% of the Fortune

China 500 companies had used SF’s international services.Supply Chain and International Business

International Express and Cross-Border E-commerce

In the first half of 2025 the Company’s supply chain and

international business achieved a tax-exclusive revenue of Logistics

RMB34.23 billion representing a year-on-year increase of The Company continued to optimize its international product

9.7%. offerings improve network efficiency and strengthen overseas

Leveraging its broad Asian customer base global network coverage operational capabilities. Time-sensitive fulfillment of its cross-border

outstanding operational efficiency and tailored solution capabilities service in key Asia-Pacific and Western markets ranked among the

the Company proactively adapted to evolving global trade dynamics top three industry-wide. Notably next-day delivery success rates

and helped customers build flexible and resilient global supply from China to major Asia-Pacific destinations – such as Singapore

chains. Concurrently the Company actively captured opportunities Malaysia and South Korea – increased by over 10 percentage

arising from the growing overseas expansion of Chinese enterprises points year-on-year. Capitalizing on its robust domestic customer

— both in terms of products and production capacities — as well as base the Company focused on acquiring high-end customers

increasing demand from cross-border Chinese consumers driving including mid-to-high-end enterprise customers by offering

rapid growth in its supply chain and international business. customized time-definite international express services. In parallel024 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

leveraging its premium brand and its last-mile delivery network * Automotive: The Company provided end-to-end logistics services

the Company expanded into scenarios related to cross-border for auto parts to multiple automotive customers across global

consumption by overseas Chinese such as international travel and markets. Notably it secured air freight contracts from China to

shopping global e-commerce purchasing business travel student India as well as sea and air logistics delivery between China and

relocation and daily life logistics. Revenue from international other Asia-Pacific destinations successfully competing against

express products increased over 16% year-on-year in the first half global express giants.of 2025.* New Energy: For leading lithium battery manufacturers the

In addition leveraging its self-operated cargo flights maritime Company delivered international logistics solutions for large-format

logistics resources and overseas warehousing capabilities the battery delivery via air and sea including door-to-door services. It

Company also served a diversified cross-border e-commerce also signed freight contracts covering six European countries and

customer base – including major e-commerce platforms was invited to participate in overseas factory relocation projects

independent overseas websites vertical-category sellers and for its customers.manufacturing clusters. For example in specialized product verticals

such as wedding dresses crystals and wigs the Company adopted International Cargo and Freight Forwarding Services

flexible go-to-market strategies and achieved breakthroughs in

logistics share across these niche export categories. Meanwhile In the first half of 2025 the international freight market confronted

the Company strengthened its capabilities in Europe enhancing a range of complex challenges driven by shifts in global trade

competitiveness in logistics lanes from China to the UK Germany policies heightened geopolitical tensions and volatile tariff regimes.and France. As a result cross-border e-commerce logistics revenue The abrupt changes in trade dynamics led to industry-wide

for European lanes doubled year-on-year in the first half of 2025. disruptions including cargo congestion flight cancellations and

sudden restocking surges resulting in significant fluctuations in

Supply Chain Services freight demand and pricing. Against this backdrop the Company

demonstrated strong resilience through KLN’s diversified business

Seizing the momentum of Chinese enterprises expanding overseas portfolio and broad customer base as well as its robust network

the Company delivered customized supply chain solutions for presence across Southeast Asia. This allowed the Company

customers across industries such as telecommunications and to respond with agility to evolving market conditions securing

high-tech industrial equipment automotive home appliances and stable freight capacity and ensuring timely delivery services for

furniture apparel and footwear and specialty food and beverage. customers. Capitalizing on opportunities arising from global supply

These solutions covered diverse geographic regions including chain reconfiguration and the accelerated international expansion

Southeast Asia the Middle East Europe North America and Latin of Chinese enterprises the Company achieved steady growth

America with the Company achieving continued breakthroughs in in international freight operations along Asia-Europe routes and

overseas supply chain projects. intra-Asia corridors. Meanwhile benefiting from an increase in

engineering procurement and construction projects and a recovery

* Specialty Food & Beverage: The Company supported the

in traditional industrial logistics revenue from project logistics in the

international expansion of several emerging Chinese beverage

first half of 2025 approached the full-year level in 2024. Leveraging

brands. For instance it facilitated the launch of a tea brand’s first

a well-diversified portfolio across multiple sectors and trade lanes

store in Malaysia and later its expansion to over 30 stores’ openings

the Company continued to deliver flexible and resilient freight

across several countries. It also enabled the daily operations of

solutions amid an increasingly volatile global landscape. The overall

90 coffee stores in Singapore and Malaysia for a leading Chinese

revenue for the first half of 2025 remained stable.brand.* Apparel & Footwear: For a top Chinese sportswear brand the Operational Optimization

Company provided integrated warehousing and distribution services

in Vietnam Singapore and the Philippines. It also supported Sorting Process

cross-border delivery of raw materials (via land and sea) from

China to Vietnam for a leading wedding dress seller with local land Establishing a High-Efficiency Intelligent Sorting Network: The

transportation and air delivery of finished goods for export. Company continued to drive site consolidation within the same

cities and regions to optimize network layout reduce transfer

* Telecom & High-Tech: The Company provided multimodal nodes and minimize parcel sorting times. Tailored processing

transport and warehousing services to major consumer electronics procedures and sorting tools were deployed to accommodate

customers facilitating global raw material allocation and product the unique characteristics of small parcels large parcels and

circulation. For a robotic lawn mower brand it delivered international LTL freight thereby establishing a tiered and specialized sorting

oversized air cargo overland trucking from China to Germany and capability. To enhance operational efficiency the Company

German warehouse operations – supporting rapid overseas market introduced cutting-edge technologies and equipment including

penetration. ultra-high-speed sorting equipment. In the first half of 2025 overInterim Report 2025 S.F. Holding Co. Ltd. 025

Management Discussion and Analysis

025

120 sets of automation equipment and over 380 AGV unmanned Improving Efficiency and Lowering Costs through Lean

forklifts were newly deployed. Furthermore the Company upgraded Transportation Management: The Company optimized its

its dynamic scheduling systems enabling real-time forecasting ground network by streamlining routes and maximizing direct

of downstream processing volumes based on collection and shipping. As of June 30 2025 the Company had over 6000

routing data – allowing for hour-level resource allocation and direct delivery line-haul routes between cities. Partnerships with

boosting overall utilization efficiency. As a result small parcel third-party logistics providers were further deepened to unlock

sorting productivity improved by 12.5% and per-parcel sorting costs complementary advantages. Intelligent algorithms were employedcontinued to decline in the first half of 2025. to match vehicle schedules with driver shifts promoting a “non-stoptruck” model. Coupled with smart systems for route design the

Enhancing Sorting Center Productivity: The Company advanced

share of round-trip trunk routes rose by over 16 percentage points

the transition of sorting centers from cost centers to operational

in the first half of 2025 leading to significant savings in line-haul

units with profit and accountability strengthening the team’s

transportation costs. In unmanned transportation more than 1800

awareness of independent operation. Externally standardized

autonomous delivery vehicles were deployed for short-haul routes

packaging operations were centralized at the sorting centers to

between sorting centers service outlets and last-mile delivery

free up courier time for enhanced customer engagement. Sorting

areas as well as in campuses and industrial parks — further

centers were opened to accept self-collected parcels extending

driving down short-haul transportation costs. Additionally the

cutoff times and reducing overall parcel turnaround. Internally

Company enhanced cost control through fuel discounts fleet

the Company implemented streamlined organizational structures

maintenance optimization vehicle upgrades for higher capacity

and flatter hierarchies to accelerate operational decision-making

and the adoption of new energy vehicles achieving holistic cost

and deployed technology-enabled precision-based commission

structure improvement.systems linked to individual performance while incentivizing

grassroots innovation. Meanwhile tools such as BI dashboards

and RPA bots enabled automated data analysis and reporting Last-Mile Delivery

significantly enhancing management effectiveness for sorting. Stimulating Couriers for Income Generation: The Company

Upgrading Unmanned Containerized Transit Operations: strengthened its “team leader” model by granting team leaders

Following the launch of the industry’s first unmanned containerized greater autonomy and establishing a comprehensive team honor

sorting center in 2024 with partial “lights-out operations” the system which significantly boosted couriers’ motivation for

Company introduced newly designed modular containers compatible business development. By mid-2025 approximately 16000 teams

with both line-haul and short-haul routes improving vehicle load were formed encompassing hundreds of thousands of couriers

rates and reducing unit transportation costs. These innovations leading to both business expansion and income growth. Marketing

laid a strong foundation for medium- to long-haul container-based rights were delegated to frontline staff supported by differentiated

transportation. During the first half of 2025 construction of a incentive programs that drove high-quality revenue generation.second unmanned containerized center commenced supported To ensure competitive remuneration a city-tiered compensation

by upgraded AGV systems. Once operated the center will facilitate strategy was adopted. Additional measures such as dynamic pricing

seamless containerized transfer between South and East China based on delivery difficulty incentives for new hires and flexible

substantially enhancing network-wide transit efficiency. pay adjustment in low-income regions contributed to a steady

year-on-year increase in average courier payment scale during the

first half of 2025. The Company emphasized courier satisfaction

Transportation Process

as a key driver of service quality thereby enhancing customer

Establishing a Resilient Transportation Capacity Ecosystem: satisfaction and reinforcing its long-term competitive edge.The Company adhered to a win-win philosophy in supplier

Enhancing Courier Efficiency: Work tools were continuously

collaboration by refining its tendering and procurement strategies.upgraded to enhance safety and adaptability for various delivery

Demand specifications were detailed to the origin-destination route

scenarios while reducing labor intensity. WeCom was utilized for

level including vehicle types and shipping frequency improving

batch notifications and marketing message distribution significantly

resource planning certainty for suppliers and lowering procurement

improving communication between couriers and customers. As of

costs. A broad and flexible capacity pool was established by

June 30 2025 WeCom accounts had reached 40 million retail

integrating transport resources across small parcels freight cold

customers. On the digital front the Company interactively upgraded

chain and supply chain services. Through intelligent routing and

its intelligent courier assistant integrating technologies such as

resource tagging the Company matched optimal suppliers based

retrieval-augmented generation (RAG) voice interaction and audio

on industry-specific and scenario-based needs to enhance service

playback. These tools supported a range of functions including

specialization and cost-efficiency. In addition pilot deployments

waybill inquiry and marketing message generation answering 3.5

of autonomous vehicle fleets commenced supported by

million queries in the first half of 2025. A conversational courier

multi-type driver resources for round-trip stable routes. To drive

management assistant powered by large language models was

operational excellence an incentive mechanism closely tied to

also deployed to support onboarding problem-solving and skill

fleet performance was implemented across departments including

enhancement – significantly boosting couriers’ professionalism and

vehicle procurement route planning and sorting accelerating lean

work efficiency. As a result in the first half of 2025 small-parcel

fleet management and reducing transportation costs.pickup and delivery efficiency increased by 13.7% year-on-year

while freight handling efficiency increased by 19% year-on-year.026 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Core Competitiveness

The Company has an efficient and reliable global logistics infrastructure network

rooted in China radiating to Asia and connecting the world

Note: The data below are all as of June 30 2025.Global service network coverage

Domestic

Prefecture-level divisions County-level divisions

covered in China covered in China

3392839

Prefecture-level divisions coverage County-level divisions coverage

100%99.8%

Overseas

International express delivery

freight forwarding and supply International small parcels

chain business business

95 countries and 200 countries and regions covered regions coveredInterim Report 2025 S.F. Holding Co. Ltd. 027

Management Discussion and Analysis

027

We are operating a cargo airline that is the largest in China and maintains leading position in the world

and we are also the largest shipper of air cargo in China

Note: For the data below the time points are all as of June 30 2025 and the periods are all from January 1 2025 to June 30 2025.SF’s global air cargo volume

1330000 tons

SF’s domestic cargo volume accounted for

33.8% of the national air cargo and mail traffic

All-cargo aircraft

SF’s global average daily flights

107 818 333 5700 times

all-cargo pilots in service pairs of flight rights

aircraft in operation 73 domestic destinations

91 aircraft self-operated 57 international and regional

destinations covered

185 680000 tons

routes operated worldwide of cargo

29000 flights of which more than 200000 tons

57 international routes in were shipped internationally

operation

Over 6800 flights

Belly Cargo Capacity

310010000

domestic routes international routes

1000000 650000 tons

flights in shipments of which over 200000 tons

were shipped internationally

The Ezhou cargo hub is the first dedicated air cargo hub in Asia and cargo volume of the Company at the Ezhou cargo hub witnessed over

fourth in the world which is of strategic value and scarce position. Since 100% growth as compared to the same period of 2024.officially commencing operation of its logistics complex at the Ezhou

cargo hub in September 2023 the Company had launched 59 domestic The strategic vision for the Ezhou cargo hub is to become the center

and 19 international cargo routes there by the end of the Reporting of global supply chain and a high-end processing and distribution hub.Period. In the first half of 2025 the Company recorded over 14000 flight Top-tier customers from various industries including 3C electronics

take-offs and landings at the hub representing a year-on-year increase of high-end and intelligent manufacturing and cold-chain pharmaceuticals

14%. The logistics complex features an extensive 52-kilometer intelligent have established their presence in the Ezhou cargo hub. The hub-and-

sorting line that can process up to 280000 parcels per hour at its peak spoke mode of the Ezhou cargo hub enables the Company to enhance

capacity. Additionally 14 intelligent customs inspection lines featured with its aviation network to seamlessly integrate domestic and internationala fully automated sorting system ensure efficient customs clearance and routes thus gradually achieving “overnight nationwide delivery and thedelivery of international parcels. In the first half of 2025 the international third day global connectivity.”028 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Our extensive transportation resources allow us to provide domestic

and cross-border multi-modal transportation services for our customers

Note: For the data below the time points are all as of June 30 2025 and the periods are all from January 1 2025 to June 30 2025.Ground transport Railway transport

High-speed rail express

120000 products with General railway trains

trunk and feeder trucks under 1019 flows 172 lines

management worldwide

110000 International trains 43

vehicles for termination’s collection 212 lines countries and regions covered

and distribution

Total volume of rail shipments

1100000 tons

Sea freight

11000 Sea freight shipments

maritime routes 580000 TEUInterim Report 2025 S.F. Holding Co. Ltd. 029

Management Discussion and Analysis

029

The globally-spread outlets pillaring

our international and localized operations

Note: The data below are all as of June 30 2025.Service Outlets

3800039000440000

domestic service outlets and overseas self-operated & network-wide couriers

other service stations agency outlets

370000

cooperative service points

(including city stations and rural distribution shops)

Sorting Hubs

Express Hubs Freight Hubs

236143

sorting hubs sorting hubs

in operation in operation

Warehouses

Global Warehouse Resources Number of Warehouses

12million sqm 1500

domestic operated warehouses overseas operated warehouses food cold-chain warehouses covering

8.4million sqm 2.5million sqm 0.82million sqm

franchised warehouses countries and regions covered pharmaceutical cold-chain warehouses covering

1.1million sqm 35 0.12million sqm030 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

We possess numerous key site resources such as logistics parks and logistics centers in countries

including China and Southeast Asian both through our direct ownership or via REITs

Note: The data below are all as of June 30 2025.Total land area Total building area

12.53million sqm 11.45million sqm

Completed operational projects Projects to be completed in the second half of 2025

and beyond

Land area Land area Building area

10.14 million sqm 2.39million sqm 1.90million sqm Changchun

Building area Shenyang

9.55million sqm

Urumqi Beijing Weihai

hai Se

a

Shijiazhuang Tianjin

Bo Qingdao

Weifang a

Yellow

Se

Hebi

Nanjing

Zhengzhou Yancheng

Nantong Changzhou

Lanzhou Luoyang Huai’an

hina S

ea

C WuxiXi’an Hefei East

Maanshan Suzhou

Xiaogan Yiwu KunshanWuhu

Wuhan Shanghai

Chengdu Quzhou wei Yu

Nanchang Jiaxing

Chi

Yiyang

Lhasa JinhuaChongqing Wenzhou u Island

s Ningbo

Diaoy

Changsha Quanzhou

Ganzhou

Guiyang Xiamen Zhangjiagang

Guangzhou

aiwan Ezhou

Liuzhou TFoshan Dongguan

Mundra Zhongshan HuizhouNanning

Zhuhai Shenzhen

Hong Kong

sha Islan

ds

Dong

Haikou

Mumbai

ainan Is

land

H

d

Bay of Bengal Islan

sha Islan

ds Huang

yan

Xi

h Chin

a Sea

Yangon Region utRayong So

Da Nang City

gsha Is

lands

Zhon

Tamilnadu

l

Phnom Penh mes ShoaJa

Completed operational projects Mandalay Region

Projects to be completed in the second half of 2025 and beyond

Binh Duong Province

Tampines

Note 1: Where there are multiple legends preceding the name of a single city it

indicates that the projects in that city are being constructed in phases or there Chonburi Province Map scale

are multiple projects in that city and their completion dates fall in different

intervals. Samutprakan Province

Note 2: The above data includes industrial park projects that have been placed into the

real estate investment trusts and the warehouse logistics infrastructure securities

investment fund which are operated and managed by the Company.Yangt Yz ee l lR oi wve Rr iver

Nansha IslandsInterim Report 2025 S.F. Holding Co. Ltd. 031

Management Discussion and Analysis

031

Pioneering Logistics Technology Driving the In the area of intelligent operations the Company has completed

Evolution of Smart Supply Chains a comprehensive upgrade to “SF HyperBrain 2.0” a next-generation

decision intelligence system that enables end-to-end optimization

The Company aspires to become a globally respected leader in across the logistics network. Leveraging the power of the cognitive

digital and intelligent logistics solutions. Drawing on its deep-rooted agent the system performs scenario-based simulation and

understanding of diverse logistics scenarios proven track record decision-making in areas such as transportation mode planning

of serving industry-leading clients and continued innovation across routing optimization resource scheduling and holistic time-cost

cutting-edge intelligent technologies the Company has established modeling. For example for international small-parcel air cargo the

its industry-leading smart logistics capabilities. This proprietary AI-powered containerization module has achieved an impressive

digital intelligence infrastructure drives the efficient orchestration 98.8% plan adoption rate while boosting operational efficiency

of the Company’s complex logistics networks internally while by 75%.externally enabling customers to build best-in-class digital logistics

In the domain of market insight and intelligent marketing

and supply chain practices.the agent exhibits autonomous capabilities across perception

As of the end of the Reporting Period the Company held a total of decision-making execution and evaluation. It is able to identify

2530 software copyrights and 4134 patents (including both granted and profile high-potential customer segments in specific business

and pending applications) with invention patents accounting scenarios dynamically generate targeted marketing strategies and

for 63% of its overall patent portfolio. The Company actively continuously learn from outcomes. These intelligent capabilities have

collaborates with industry associations academic institutions and already been deployed in key verticals such as industrial clusters

other ecosystem partners to reinforce SF Technology’s visibility and residential ecosystems where they power a closed-loop

and thought leadership within the logistics and supply chain sector. marketing framework – spanning opportunity identification strategic

During the period the Company was recognized as a Finalist for deployment and value conversion – thereby enabling precise

the prestigious 2025 Franz Edelman Award was selected as one market targeting enhanced campaign ROI and accelerated

of the inaugural cases under the National Data Administration’s business development.“Digital China” initiative and was honored with the 2024 Science

SF Logistics Language and Multimodal Model (“Fengyu”):

and Technology Award by the China Federation of Logistics &

Purchasing among other industry accolades. Powered by its proprietary Logistics language and multimodal

model “Fengyu” the Company has developed a suite of digital

Deepen Integration of Intelligent Technology: assistants that significantly enhance operational efficiency across

AI-Powered Internal End-to-End Operations multiple roles:

SF Cognitive Decision Intelligence Agent: The Company has * Digital Customer Service: Enhanced virtual agents application

pioneered the development of the SF Cognitive Decision Intelligence large model for call centers and online platforms deliver more natural

Agent an advanced AI decision-making framework that integrates and accurate interactions capturing customer intent address

proprietary domain-specific foundation models with external and time information thereby enhancing customer self-operation

general-purpose large language models alongside technologies rate and experience. AI tools have also been deployed across

such as operations research optimization and spatiotemporal customer service scenarios including customer consultation

network modeling. This intelligent agent has been deployed across customer complaints and claims enabling intelligent claims

multiple mission-critical functions including logistics network processing automatic summarization and receipt verification.planning and operations market analytics and marketing strategy Customer sentiment monitoring helps drive customer service

business forecasting and dynamic resource allocation. capability improvements. Additionally the model processes and

classifies massive customer feedback from queries identifying areas

for service enhancement and experience optimization.032 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

* Digital Data Analyst: Robotic Process Automation (RPA) and SF Empowering Customers with Leading Digital Supply

logistics language models streamline data extraction and analysis Chain Solutions

across various scenarios – such as sorting center performance

tracking periodic operational reporting and packaging and site New Model for the Apparel Industry: To address the high

compliance audits – resulting in a 50% reduction in processing time. return rates caused by strong seasonality rapid SKU turnover

and the need for try-before-you-buy the Company established

* Digital Warehouse Management: Intelligent assistants handle proprietary return centers that utilize SF proprietary “Baichuan”

repetitive and time-consuming tasks such as real-time monitoring system to manage returns intelligently. Upon receipt packages

and alerting of delayed deliveries and automatically resolving are automatically matched with original order and product data.financial reconciliation issues at service outlets. After deployment Online quality checks classify items while storage location and

the workload associated with parcel monitoring has decreased by warehouse routing are optimized based on order channel product

69% significantly reducing the frequency of customer follow-ups. type and inventory status — enhancing in-warehouse efficiency

and return turnaround.Advancing Autonomous Technologies to Improve

Efficiency and Reduce Costs International Supply Chain Case Study: With SF’s global strategy

progressing rapidly the Company now operates digital intelligence

Unmanned Vehicles: The Company has established a large-scale warehouses in several countries including Spain Germany

multi-scenario presence for unmanned vehicles covering short-haul Australia Thailand Japan etc. all of which are powered by SF

transport last-mile transit intra-outlet handling and university and proprietary “Baichuan” platform. In the Company’s Spanish flagship

commercial campus delivery. In the first half of 2025 over 1800 transit hub the system enables end-to-end control of the supply

unmanned vehicles were deployed across 72 cities in 19 provinces. chain – from inbound to last-mile delivery. It supports real-time

A unified platform for multi-vendor multi-model fleet management inventory tracking intelligent replenishment planning and dynamic

has been developed to enhance performance and efficiency. wave task generation while integrating core logistics functions

Integration with handheld terminals enables seamless operations across warehousing transportation and order management. The

– including loading/unloading scheduling and repositioning – system supports multi-platform order fulfillment and full-channel

via a single entry point streamlining workflows and enhancing inventory visibility representing a best-in-class application of our

productivity. “Omnichannel inventory management” capability in an international

setting.Unmanned Warehouses: SF’s proprietary “Baichuan” WMS/

WES platform underpins intelligent warehouse systems with full Benchmark Case in the Manufacturing Sector: Partnering with

automation integration including intelligent scheduling task a leading global industrial manufacturer the Company deployed

dispatching and visual analytics. These systems support major SF proprietary supply chain platforms – SF Cloud Chain Fengzhi

warehouse deployments for customers across industries including Cloud Tower and the Vehicle Appointment Management System

pharma electronics and home appliances. In the cosmetics sector – to create a comprehensive transportation management solution

where high SKU diversity complex packaging and strict shelf-life tailored to the industrial manufacturing sector. This platform

tracking are critical SF’s automated warehouses – equipped with supports automated order ingestion intelligent task assignment and

AGVs stackers lifts and shuttle systems – enable omnichannel execution and real-time visibility of logistics operations. It improves

inventory integration (2B and 2C) significantly boosting picking supply chain digitalization optimizes transport resource allocation

efficiency and reducing labor intensity thus supporting inventory enhances operational efficiency and reduces costs while supporting

storage worth hundreds of millions of RMB and the delivery overseas expansion. This solution is now being scaled across more

demand exceeding 100000 orders per warehouse on a daily basis. factories and industry customers in the Asia-Pacific region.The Company’s platform also synchronizes with transportation

planning to ensure smooth handoffs between warehouse and

delivery. Several landmark unmanned warehouses have already

been established serving key clients in pharmaceuticals high-tech

manufacturing and home appliances.Interim Report 2025 S.F. Holding Co. Ltd. 033

Management Discussion and Analysis

033

Premium Service Establishing an Unparalleled their use of SF as a symbol of premium service and brand

Brand Value trustworthiness. By associating their products with SF’s premium

services corporate customers and e-commerce platforms are able

The Company has consistently adhered to a customer-centric to enhance consumer perception of their product quality foster

philosophy striving to deliver service offerings that are not greater trust and improve sales performance.only of compelling value but also exceed expectations. From

SF’s commitment to excellence has led to unparalleled brand value.express delivery products to comprehensive logistics services and

The Company has built a loyal and highly engaged customer base

be-spoke industry-specific supply chain solutions the Company

across various industries becoming the go-to logistics partner for

remains deeply committed to honoring the trust placed in SF

many top-tier customers. This dedication to premium service has

by every customer providing services that are both reliable and

earned SF wide recognition from customers industry peers and

value-enhancing. As of the end of the Reporting Period the

the public alike.Company served more than 2.35 million customers with active

credit accounts and over 760 million retail customers. In the ranking released by the State Post Bureau SF has been

ranked first in public satisfaction with express delivery services for

In China SF has become the household name and synonym for

16 consecutive years (2009-2024). The Company ranked 393rd in

high-timeliness express delivery service. “Let me SF this to you”

“ ” the Fortune Global 500 list for 2025 released by Fortune magazine. has been equivalent with express delivery to you . The Company

“ ” “ ” It has been on this list for four consecutive years and it is also the has built a strong brand reputation centered around fast reliable

“ ” ’ first and only Chinese private express delivery enterprise among and premium service in customers mindset setting the industry

the Fortune Global 500. Additionally according to Brand Finance’s

benchmark for superior customer experiences. As a result many

2025 Global Logistics Brand Value Ranking the Company ranked

corporate customers and e-commerce platforms actively advertise

6th globally and 1st among Chinese logistics brands.

State Post Bureau

for 16 consecutive years

No.1 No .1

in Express Delivery Service Public

Satisfaction in the first half of 2025 in Express Delivery Service Public Satisfaction in 2024

Fortune

393 selected for 4 consecutive years 2 selected for 8 consecutive years selected for 4 consecutive yearsrd nd China ESG

among “2025 Global 500 Companies” among “Most Admired Chinese Impact ListCompanies” in 2024

Brand Finance

377 selected for 6 consecutive years selected for 7 consecutive yearsth 6th 7th

among “World’s Top 500 Most Valuable Brands” among “World’s Most Valuable Logistics among “World’s Top 10in 2025 Brands” in 2025 Logistics Brands by SustainabilityPerceptions Value” in 2024034 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Financial Review

Revenue

In the first half of 2025 the total revenue of the Group reached RMB146.86 billion representing an increase of 9.26% as compared to the

same period in 2024. The breakdown of the revenue categorized by industry by operating segment and by geographical region is set out

below. For details of the development of each major business please refer to “Business Development of the Company” in this section.For the six months ended June 30

20252024

Year-on-

Percentage Percentage year amount

Amount of revenue Amount of revenue change

RMB’000 RMB’000

Total revenue 146858174 100.00% 134409720 100.00% 9.26%

Categorized by industry:

Logistics and freight forwarding 143530874 97.73% 130207965 96.87% 10.23%

Other non-logistics business(1) 3327300 2.27% 4201755 3.13% -20.81%

Categorized by operating segment:

Express and freight delivery segment 104772845 71.34% 96820175 72.03% 8.21%

Time-definite express 63233100 43.06% 59185770 44.03% 6.84%

Economy express 15160431 10.32% 13254012 9.86% 14.38%

Freight 19572650 13.33% 17554101 13.06% 11.50%

Cold chain and pharmaceutical logistics 5836978 3.97% 5062524 3.77% 15.30%

Others(2) 969686 0.66% 1763768 1.31% -45.02%

Intra-city on-demand delivery segment 5582531 3.80% 4022952 2.99% 38.77%

Intra-city on-demand delivery 5493390 3.74% 3956020 2.94% 38.86%

Others(2) 89141 0.06% 66932 0.05% 33.18%

Supply chain and international segment 35768179 24.36% 32914104 24.49% 8.67%

Supply chain and international business 34234325 23.31% 31195538 23.21% 9.74%

Others(2) 1533854 1.04% 1718566 1.28% -10.75%

Undistributed units(3) 734619 0.50% 652489 0.49% 12.59%

Categorized by region:

Mainland China 126936236 86.43% 115996449 86.30% 9.43%

Hong Kong Macao and Taiwan China 4705646 3.20% 4512024 3.36% 4.29%

Other international 15216292 10.36% 13901247 10.34% 9.46%Interim Report 2025 S.F. Holding Co. Ltd. 035

Management Discussion and Analysis

035

Notes:

(1) “Other non-logistics business” categorized by industry mainly represents the ancillary non-logistics services provided by the Company including the

purchase and sales of goods involved in the process of providing end-to-end supply chain services for customers leasing services and provision

of technical services.

(2) “Others” categorized by operating segment mainly comprise the purchase and sales of goods involved in the process of providing end-to-end supply

chain services for customers.

(3) “Undistributed units” mainly comprise leasing services and provision of technical services.

(4) Any discrepancies between totals and sums of the numbers are due to rounding.

Cost of Revenue

The cost of revenue of the Group in the first half of 2025 amounted to RMB127.80 billion representing an increase of 10.08% as compared

to the same period in 2024 which was in line with the growth trend of revenue during the Reporting Period. The breakdown of the cost

categorized by industry is set out below:

For the six months ended June 30

20252024

Percentage Percentage Year-on-

of cost of of cost of year amount

Amount revenue Amount revenue change

RMB’000 RMB’000

Total cost of revenue 127797632 100.00% 116096281 100.00% 10.08%

Categorized by industry:

Logistics and freight forwarding 125144444 97.92% 112480862 96.89% 11.26%

Other non-logistics business 2653188 2.08% 3615419 3.11% -26.61%

Gross Profit and Gross Profit Margin

The overall gross profit of the Group in the first half of 2025 amounted to RMB19.06 billion representing an increase of 4.08% as compared

to the same period in 2024. The breakdown of the gross profit categorized by industry is set out below:

For the six months ended June 30

2025 2024 Year-on-year change

Gross profit Gross profit Change in Change in gross

Amount margin Amount margin amount profit margin

RMB’000 RMB’000

Total gross profit 19060542 12.98% 18313439 13.63% 4.08% Down by 0.65

percentage point

Categorized by industry:

Logistics and freight 18386430 12.81% 17727103 13.61% 3.72% Down by 0.80

forwarding percentage point

Other non-logistics 674112 20.26% 586336 13.95% 14.97% Up by 6.31

business percentage points036 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Among which in the first half of 2025 the gross profit of logistics and freight forwarding business was RMB18.39 billion representing an

increase of 3.72% as compared to the same period in 2024 and the gross profit margin was 12.81% representing a decrease of 0.80

percentage point as compared to the same period in 2024. The change in gross profit margin was mainly affected by changes in the percentage

of the following three major cost items to revenue:

For the six months ended June 30

2025 2024 Year-on-year change

Percentage Percentage Change in Change in the

Amount of revenue Amount of revenue Amount percentage of revenue

RMB’000 RMB’000

Labor cost 61684717 42.98% 53523463 41.11% 15.25% Up by 1.87

percentage points

Transportation cost 46774772 32.59% 42765854 32.84% 9.37% Down by 0.25

percentage point

Other operating costs 16684955 11.62% 16191545 12.44% 3.05% Down by 0.82

percentage point

Labor cost-to-revenue ratio increased by 1.87 percentage points as compared to the same period in 2024. The increase primarily reflected

the Company’s continued efforts to enhance the competitiveness of compensation mechanism for couriers and increase sales incentives to

promote business development alongside higher remuneration driven by business growth. These impacts were partially offset by efficiency

gains from the application of intelligent and unmanned technologies which helped moderate labor cost increase.Transportation cost-to-revenue ratio decreased by 0.25 percentage point as compared to the same period in 2024. This performance was

primarily driven by the Company’s reinforcement of critical domestic air resources increased investment in direct ground line-haul routes

and route acceleration and the expansion of bulky-cargo and LTL network coverage thereby enhancing product competitiveness and

sector-speicific service capability. In parallel the Company launched additional international all-cargo routes increased flight frequencies

and developed premium cross-border road routes to strengthen its international network. At the same time through continuous optimization

of its operating model promoting delivery consolidation to reduce transit and by recalibrating capacity sourcing and procurement strategies

the Company effectively contained transportation costs.Other operating costs-to-revenue radio decreased by 0.82 percentage point as compared to the same period in 2024. While advancing strategic

investments in core facility establishment densifying last-mile touchpoints and strengthening overseas delivery and warehousing capacity the

Company exercised disciplined capital allocation to contain the pace of capital expenditure growth and maintain a healthy capex-to-revenue

ratio. As parcel volumes increased these initiatives translated into enhanced operating leverage and economies of scale.Selling and Marketing Expenses

The selling and marketing expenses of the Group in the first half of 2025 amounted to RMB1.76 billion representing a year-on-year increase

of 19.8% compared with RMB1.47 billion in the same period of 2024 and the ratio of selling and marketing expense to revenue was 1.20%

in the first half of 2025 representing a year-on-year increase of 0.11 percentage point compared with 1.09% in the same period of 2024. This

was primarily driven by the Company’s accelerated expansion of its sales team to bolster business development.General and Administrative Expenses

The general and administrative expenses of the Group in the first half of 2025 amounted to RMB9.12 billion representing a year-on-year

increase of 0.78% compared with RMB9.05 billion in the same period of 2024 and the ratio of general and administrative expense to revenue

was 6.21% in the first half of 2025 representing a year-on-year decrease of 0.52 percentage point compared with 6.73% in the same period of

2024. This was mainly due to the Company’s adherence to lean operations technology empowerment of digitalized and intelligent management

streamlined organizational structure and improved management efficiency.Interim Report 2025 S.F. Holding Co. Ltd. 037

Management Discussion and Analysis

037

Research and Development Expenses Finance Costs Net

The research and development expenses of the Group in the The finance costs net of the Group in the first half of 2025

first half of 2025 amounted to RMB1.15 billion representing amounted to RMB0.77 billion representing a year-on-year decrease

a year-on-year decrease of 11.38% compared with RMB1.30 of 5.21% compared with RMB0.82 billion in the same period of

billion in the same period of 2024 and the ratio of research and 2024 mainly due to a decrease in interest expenses on borrowings.development expenses to revenue was 0.79% in the first half of

2025 representing a year-on-year decrease of 0.18 percentage Income Tax Expense

point compared with 0.97% in the same period of 2024. The overall

investment in research and development of the Company remained The income tax expense of the Group in the first half of 2025

stable the Group’s total research and development investment amounted to RMB1.63 billion representing an increase of 4.4%

(including research and development expenses and development as compared with the corresponding period in 2024 which was

expenditures) in the first half of 2025 amounted to RMB1.48 mainly due to the increase in the profit for the first half of the year

billion representing a decrease of 7.42% as compared with the of the Company.same period in 2024 and its proportion to revenue was 1.01%

representing a decrease of 0.18 percentage point as compared Profit

with that of the same period in 2024. The Group achieved profit of RMB6.01 billion in the first half of

2025 representing an increase of 26.29% as compared to the

Other Gains Net same period in 2024. Of which profit attributable to owners of the

Other gains net of the Group in the first half of 2025 amounted to Company amounted to RMB5.74 billion representing an increase

RMB0.82 billion representing a year-on-year increase of RMB0.53 of 19.37% as compared to the same period in 2024. The net profit

billion compared with RMB0.29 billion in the same period of 2024 and change over the previous year for each of the Company’s

which was mainly attributable to the gain on disposal arising from operating segments are set forth below:

the transfer of three wholly owned property-holding subsidiaries to

Southern SF Logistics REIT during the Reporting Period.For the six months ended June 30

Year-on-year

2025 2024 change

RMB’000 RMB’000

Express and freight delivery segment 5384678 4795733 12.28%

Intra-city on-demand delivery segment 137049 62174 120.43%

Supply chain and international segment -295907 -574213 48.47%

Undistributed units 843113 450071 87.33%

Net profit for the express and freight delivery segment in the first The supply chain and international segment recorded a net loss

half of 2025 was approximately RMB5.38 billion representing an of approximately RMB300 million in the first half of 2025 which

increase of 12.28% as compared to the same period in 2024. Such narrowed by 48.47% compared to the same period in 2024.increase was underpinned by rapid business scale expansion Excluding the net loss of RMB430 million from the overseas

the Company’s continuous adherence to lean management and subsidiary KEX and the interest expense on financing related to

operations and stronger network scale effects resulting in a steady the Company’s M&A of KLN of RMB290 million the segment

reduction in per-parcel operating costs and major expense ratios. delivered a net profit of RMB430 million for the Reporting Period

representing a year-on-year increase of 178% from RMB150 million

Net profit for the intra-city on-demand delivery segment in the first

on a comparable basis in the first half of 2024. Benefiting from

half of 2025 was approximately RMB137 million representing an

the Company’s capturing the opportunities of global supply chain

increase of 120.43% as compared to the same period in 2024.reshaping and Chinese enterprises going overseas as well as

The doubling of net profit was primarily driven by rising market

improving the efficiency of the supply chain through lean operations

demand and a healthier business mix while lean management

the Company’s supply chain business and international freight

and technology-empowered operational improvements expanded

forwarding business witnessed increased profitability.network economies of scale and supported sustained profitability

enhancement. Net profit for undistributed units in the first half of 2025 was

approximately RMB843 million representing an increase of 87.33%

as compared to the same period in 2024 mainly included the gain

(after-tax amounted to RMB590 million) on disposal arising from

the transfer of three wholly owned property-holding subsidiaries to

Southern SF Logistics REIT during the Reporting Period.038 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Non-IFRS Measures

To supplement the consolidated financial statements which are presented by the Company in accordance with IFRS the Company also uses

certain additional non-IFRS measures namely EBITDA and EBITDA margin as additional financial metrics. These non-IFRS measures are not

required by or presented in accordance with IFRS.The Company believes that these non-IFRS measures facilitate evaluation of its operating performance by eliminating potential impacts of

certain items listed below. The Company also believes that such non-IFRS measures present useful information to investors in understanding

and evaluating its consolidated results of operations in the same manner as they presented to its management. However its presentation

of such non-IFRS measures may not be comparable to similarly titled measures presented by other companies. The use of these non-IFRS

measures has limitations as an analytical tool and you should not consider it on an isolated basis or as substitute for analysis of the results

of operations or financial condition of the Company as reported under IFRS.The following table reconciles profit for the period of the Company calculated and presented in accordance with IFRS to EBITDA (non-IFRS

measure) for the periods indicated:

For the six months ended June 30

20252024

RMB’000 RMB’000

Profit for the period 6012403 4760922

Add:

Depreciation and amortization 8197307 8789650

－Depreciation of right-of-use assets 3337161 3428916

－Depreciation and amortization (excluding right-of-use assets) 4860146 5360734

Finance costs net 773324 815854

Income tax expense 1627325 1559135

EBITDA 16610359 15925561

EBITDA margin 11.31% 11.85%

Cash Flow

For the six months ended June 30

2025 2024 Year-on-year change

RMB’000 RMB’000

Net cash generated from operating activities 12936690 13722269 -5.72%

Net cash used in investing activities -17516875 -15444553 -13.42%

Net cash used in financing activities -7280764 -6181865 -17.78%

Net cash generated from operating activities: In the first half of 2025 net cash generated from operating activities of the Group was

RMB12.94 billion representing a decrease of 5.72% as compared to the same period in 2024. Please refer to note 25 to the consolidated

financial statements for a detailed explanation of the difference between the Group’s net cash generated from operating activities and net

profit in the first half of 2025.Net cash used in investing activities: In the first half of 2025 net cash used in investing activities of the Group was RMB17.52 billion

representing an increase of 13.42% as compared to the same period in 2024 mainly attributable to the combined effect of the increase in the

Group’s net cash outflow from purchasing structured deposits the increase in net cash flow from disposal subsidiaries and the decrease in

net cash outflow from purchasing property plant and equipment.Net cash used in financing activities: In the first half of 2025 net cash used in financing activities of the Group was RMB7.28 billion

representing an increase of 17.78% as compared to the same period in 2024 mainly attributable to the combined effect of the increase in

net cash outflow from borrowings of the Group the decrease in payments for repurchase of the Company’s shares and the decrease in net

cash consideration paid to non-controlling interests without change of control.Interim Report 2025 S.F. Holding Co. Ltd. 039

Management Discussion and Analysis

039

Assets and Liabilities

Changes in Major Items of Assets and Liabilities

As of June 30 Year-on-year

change

20252024

in the

percentage

Percentage Percentage Year-on-

of total

of total of total year amount

assets

Amount assets Amount assets change

RMB’000 RMB’000

Non-current assets

Property plant and equipment 55891747 25.61% 59174305 27.67% -5.55% -2.06%

Right-of-use assets 21376908 9.80% 19625629 9.18% 8.92% 0.62%

Investment properties 7547509 3.46% 7241199 3.39% 4.23% 0.07%

Investments in associates and joint ventures 7092360 3.25% 6203642 2.90% 14.33% 0.35%

Current assets

Inventories 2326187 1.07% 2432383 1.14% -4.37% -0.07%

Contract assets 2714679 1.24% 2740820 1.28% -0.95% -0.04%

Trade and note receivables 29423230 13.48% 27981633 13.09% 5.15% 0.40%

Financial assets at fair value through

profit or loss 27026920 12.38% 11246156 5.26% 140.32% 7.12%

Cash and cash equivalents 20742661 9.50% 32646055 15.27% -36.46% -5.76%

Non-current liabilities

Borrowings 24475155 11.21% 26319260 12.31% -7.01% -1.09%

Lease liabilities 9591592 4.40% 7094483 3.32% 35.20% 1.08%

Current liabilities

Trade and note payables 29077094 13.32% 27395524 12.81% 6.14% 0.51%

Contract liabilities 2034069 0.93% 2039198 0.95% -0.25% -0.02%

Borrowings 17057921 7.82% 18365122 8.59% -7.12% -0.77%

Lease liabilities 5442703 2.49% 5501314 2.57% -1.07% -0.08%

Equity

Retained earnings 42707381 19.57% 39140246 18.30% 9.11% 1.26%

Investments in associates and joint ventures: As of June 30 2025 the Group’s investments in associates and joint ventures amounted to

RMB 7.09 billion representing an increase of 14.33% as compared with the end of 2024 primarily due to increased investments in Southern

SF Logistics REIT.Financial assets at fair value through profit or loss: As of June 30 2025 the Group’s financial assets at fair value through profit or loss

amounted to RMB27.03 billion representing an increase of 140.32% as compared with the end of 2024 mainly due to the increase in

structured deposits.Borrowings: As of June 30 2025 the Group’s borrowings under non-current liabilities amounted to RMB24.48 billion representing a decrease

of 7.01% as compared with the end of 2024; the borrowings under current liabilities amounted to RMB17.06 billion representing a decrease

of 7.12% as compared with the end of 2024 mainly due to the repayment of borrowings.Lease liabilities (non-current): As of June 30 2025 the Group’s lease liabilities amounted to RMB9.59 billion representing an increase of

35.20% from the end of 2024 primarily due to an increase in leases.040 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Liquidity and Capital Structure

Sources and Uses of Funds

In the first half of 2025 the Group primarily raised funds required for its development through cash generated from operating activities proceeds

from external debts and other financing activities. As of June 30 2025 the total amount of cash and cash equivalents and structured deposits

in the Group’s other financial assets was RMB47.67 billion. The Group has always adopted a prudent financial management policy maintaining

sufficient and appropriate funds to meet the repayment of matured debts capital expenditures and normal operations.As of June 30 As of December 31

20252024

RMB’000 RMB’000

Cash and cash equivalents 20742661 32646055

Financial assets at fair value through profit or loss

－Structured deposits 26928678 11015904

Total 47671339 43661959

The free cash inflow of the Group in the first half of 2025 was RMB8.74 billion which was derived from net cash generated from operating

activities of RMB12.94 billion less capital expenditures (excluding equity investments) of RMB4.20 billion representing a year-on-year increase

of 6.06% as compared with the free cash inflow in the same period of 2024 of RMB8.24 billion. Looking forward the Group believes that it will

be able to meet the liquidity requirements of the Company by using the existing cash and cash equivalents cash generated from operating

activities and financing activities.As of June 30 2025 the Group’s debt to asset ratio was 51.35% representing a decrease of 0.79 percentage point from 52.14% at the

end of 2024 and the overall capital structure remained stable. (Note: Debt to asset ratio is calculated by total liabilities dividing total assets

on the corresponding date)Interim Report 2025 S.F. Holding Co. Ltd. 041

Management Discussion and Analysis

041

Borrowings

As of June 30 2025 the Group’s short-term borrowings long-term borrowings corporate bonds short-term bonds and loans from non-

controlling interests amounted to RMB41.53 billion in aggregate which were mainly denominated in RMB HKD and USD with no significant

seasonal demand. Among which the aggregate amount of non-current corporate bonds with fixed interest rates amounted to approximately

RMB18.34 billion and the rest were carried at floating interest rates. Most of the bank borrowings are unsecured and the assets involved in

some of the secured borrowings are set out in “Limitation of asset rights” under “Assets and Liabilities” in “Financial Review” in this section.The Group did not have any borrowings that were past due during the Reporting Period. Please refer to note 20 to the consolidated financial

statements in the Report for details of the bank borrowings and other borrowings of the Group. The details are as follows:

As of June 30 As of December 31

20252024

RMB’000 RMB’000

Non-current: 24475155 26319260

Long-term bank borrowings 5951570 6186386

Corporate bonds 18340691 19941935

Loans from non-controlling interests 182894 190939

Current: 17057921 18365122

Current portion of long-term bank borrowings 1136014 1677715

Short-term bank borrowings 12435544 15118534

Short-term debentures 2507973 807787

Corporate bonds 620144 627779

Loans from non-controlling interests and other parties 358246 133307

Total 41533076 44684382

Limitation of Asset Rights

As of June 30 2025 the Group’s assets subject to restricted rights are mainly statutory reserve placed at the Central Bank and the bank

borrowing mortgage as set out below:

As of June 30 2025 Reasons for limitation

RMB’000

Restricted cash 940735 Mainly statutory reserves in the Central Bank

Property plant and equipment 500204 Bank borrowing mortgage

Right-of-use assets 173923 Bank borrowing mortgage

Investment properties 117759 Bank borrowing mortgage

Trade and note receivables 50259 Bank borrowing pledge

Total 1782880

External Guarantees

As of June 30 2025 the Group provided guarantees of RMB946 million to investee companies (such amount was RMB951 million as of

December 31 2024).Contingent Liabilities

As of June 30 2025 the Group did not have any material contingent liabilities.042 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Investments

Capital Expenditures

For the six months ended June 30

2025 2024 Year-on-year change

RMB’000 RMB’000

Total investment amount 5400677 6169640 -12.46%

The amounts of the Group’s capital expenditure items during the Reporting Period are set out below:

For the six months

ended June 30 2025

RMB’000

Office and buildings 174400

Land 213163

Warehouse 354293

Sorting center 1176652

Aircraft 906985

Vehicle 565177

Information technology equipment 358727

Equity investments 1200980

Others 450300

Total 5400677

Capital Commitments

As of June 30 2025 the Group’s capital commitments amounted to RMB3.81 billion which mainly represented capital commitments contracted

but not yet provided for the purchase of property plant and equipment. All such amounts will be settled along with the progress of the projects.Interim Report 2025 S.F. Holding Co. Ltd. 043

Management Discussion and Analysis

043

Investments in Financial Assets

Assets and liabilities measured at fair value

Gains and

losses from Accumulated Provision for Purchase Disposal

changes in fair fair value impairment amount amount

value during the changes during the during the during the

Opening Reporting recorded in Reporting Reporting Reporting Other Closing

Item balance Period equity Period Period Period changes(2) balance

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Financial assets 19955566 55134 168278 – 15742978 205463 -32251 35684242

Current financial assets at fair value

through profit or loss (excluding

derivative financial assets) (1) 11246156 36628 – – 15711638 123340 155838 27026920

Other non-current financial assets at

fair value through profit or loss 477416 18506 – – 31340 55040 32787 505009

Investments in other equity instruments 8231994 – 168278 – – 27083 -220876 8152313

Financial liabilities 105464 – -234 – – – -2547 102683

Notes:

(1) This item includes structured deposits that do not meet the principal-plus-interest contractual cash flow characteristics. These structured deposits

characterized by short maturities and high liquidity are presented on a net basis for the current period’s purchase and disposal amounts. Except

for structured deposits all other items are presented separately with their respective purchase and sale amounts for the current period.

(2) Other changes in current financial assets at fair value through profit or loss are mainly income realized from matured structured deposits and other

changes in investments in other equity instruments are mainly due to exchange differences on translation of foreign currency financial statements.Investments in securities

Gains and

Book value losses from

at the changes in Accumulated Disposal Book value

beginning fair value fair value Purchase amount at the end

Initial of the during the changes amount during during the of the

Security Abbreviation investment Reporting Reporting recorded the Reporting Reporting Other Reporting

type Stock code of security cost Period Period in equity Period Period changes Period

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Stocks 1519.HK J&T Express 1840276 939131 – 99020 – – -28338 1009813

Stocks 300771.SZ Zhilai Sci And Tech 7295 44803 – 9056 – 25084 – 28775

Stocks GB00BLH1QT30 Samarkand – 753 – -613 – – -140 –

Funds 180302.SZ China AMC-Shenzhen 49750 48531 – 13487 – 518 – 61500

International REIT

Total 1897321 1033218 – 120950 – 25602 -28477 1100088044 S.F. Holding Co. Ltd. Interim Report 2025

Management Discussion and Analysis

Investments in derivatives

The amounts of the Group’s derivatives investments for hedging purpose during the Reporting Period are set out below:

Percentage of

investment

amount at the

Gains and Accumulated end of the period

Amount at losses from fair value Purchase Amount of to net assets of

the beginning changes in fair changes amount during sales during Amount at the the Company

Type of derivatives Initial Investment of the Reporting value during the recorded the Reporting the Reporting end of the at the end of the

investment amount Period Reporting Period in equity Period Period Reporting Period Reporting Period

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Forward foreign exchange 7338935 5839480 17191 -70072 N/A N/A 7338935 7.69%

Total 7338935 5839480 17191 -70072 N/A N/A 7338935 7.69%

Actual gains/losses during the Reporting Period: The actual gains/losses of derivatives investments refers to the change in fair value of

derivative financial instruments and the actual losses for the Reporting Period amounted to approximately RMB17372 thousand.Hedging effects: The Company’s derivative investment business mainly consists of forward contracts with the underlying asset being the

exchange rate and interest rates and the currency involving USD and HKD. The main hedging operations for the Company’s US dollar bonds

and floating rate loans: (1) exchange losses on the US dollar bonds and gains on changes in the fair value of the forward exchange contracts

are generated simultaneously when the USD strengthens against the HKD; and (2) when market interest rates are higher than the locked-in

fixed interest rate the interest expenses will be reduced. By utilizing the derivative transactions to lock in costs the impact of exchange rate

and interest rates fluctuations on the Company’s profit was effectively reduced.Interim Report 2025 S.F. Holding Co. Ltd. 045

Management Discussion and Analysis

045

Use of Proceeds

The Company was successfully listed on the Main Board of the Hong Kong Stock Exchange on November 27 2024. A total of 170000000

ordinary Shares with a par value of RMB1 per Share were successfully placed and issued at a price of HKD34.3 per share in the global offering

with an aggregate par value of RMB170000000. After deducting the underwriting commissions and other estimated expenses related to

the global offering the net proceeds from the share issuance in the global offering for the Company were approximately HKD5662 million

equivalent to approximately RMB5299 million at the exchange rate of HKD1.00 to RMB0.9358.For the six months ended June 30 2025 the proceeds from the global offering were utilized in accordance with the planned uses and

proportions as stated in the prospectus. The details are as follows:

Planned use of proceeds As at June 30 2025

Expected timeline for the

Utilized Unutilized utilization of the unutilized

Percentage Amount amount amount amount

RMB’000 RMB’000 RMB’000

Strengthening international and 45% 2384395 62662 2321733 On or before the end of 2026

cross-border logistics capabilities

Strengthening and optimizing logistics 35% 1854529 1632370 222159 On or before the end of 2025

network and service offerings in China

Research and development of advanced 10% 529866 249015 280851 On or before the end of 2025

technologies and digital solutions

to upgrade supply chain and

logistics services and implement

ESG-related initiatives

Working capital and general corporate 10% 529866 529866 – –

purposes

Total 100% 5298656 2473913 2824743

Significant Investments Acquisitions and Disposals

The Group did not make any significant investments acquisitions and disposals of equity interests in subsidiaries or investee companies or

any significant investments and disposals of non-equity assets for the six months ended June 30 2025.Future Plans for Significant Investments and Capital Assets

As of June 30 2025 the Group did not have any significant investment and capital asset plans.046 S.F. Holding Co. Ltd. Interim Report 2025

Corporate Governance and Other Information

Corporate Governance Practices Model Code for Securities Transactions

The Board recognizes the importance of good corporate governance The Company has adopted the Model Code regarding Directors’

to the Company’s healthy growth and has devoted considerable and Supervisors’ dealings in the securities of the Company. Having

efforts to formulating and implementing corporate governance made specific enquiry of all the Directors and Supervisors all

practices appropriate to the Company’s needs. The Company has Directors and Supervisors confirmed that they have complied with

adopted the principles and code provisions of the CG Code as the the provisions of the Model Code during the Reporting Period and

basis of the Company’s corporate governance practices. up to the date of the Report.During the Reporting Period and up to the date of this Report The Company has also established written guidelines for securities

the Company has complied with all applicable principles of good transactions by employees who are likely to be in possession of

corporate governance and code provisions of the CG Code save inside information of the Company on terms no less exacting than

and except in respect of code provision C.2.1 of Part 2 of the CG the Model Code. No incident of non-compliance of the written

Code which requires that the roles of chairman and chief executive guidelines by the employees has been noted by the Company.should be separate and should not be performed by the same

In case the Company is aware of any restricted period for dealings

individual.in the Company’s securities the Company will notify its Directors

Supervisors and relevant employees in advance.Chairman and General Manager

Mr. Wang Wei is the chairman of the Board and the general Interim Dividend

manager (same nature as chief executive) of the Company. Since

Mr. Wang has been operating and managing the main operating As the 2024 Annual General Meeting has considered and approved

subsidiaries of the Company since incorporation of the Group the the authorization granted to the Board of Directors to determine

Board is of the view that it is in the best interest of the Group to the 2025 interim profit distribution plan the Board reviewed and

have Mr. Wang taking up both roles for effective management and approved the 2025 interim profit distribution plan on August 28

business development of the Group and Mr. Wang will provide a 2025 details of which are as follows:

strong and consistent leadership to the Group. This arrangement

ensures a more effective and efficient overall strategic planning Based on the total number of Shares registered on the record date

of the Group as this structure enables the Company to make (the “Record Date”) for the 2025 interim profit distribution plan the

and implement decisions promptly and effectively. Further the Company proposes to distribute cash dividends to all shareholders

Company has put in place an appropriate check-and-balance whose names appear on the register of members on the Record

mechanism through the Board including three independent non- Date with a cash dividend of RMB4.6 (tax inclusive) per 10 Shares.executive Directors. Therefore the Board considers that the balance The Company will not carry out bonus issue and conversion of

of power and authority of the present arrangement will not be capital reserve into share capital. Upon preliminary calculation

impaired because such arrangement would not result in excessive based on the Company’s total number of issued Shares as of

concentration of power in one individual which could adversely the date of this Report net of Shares in the repurchase securities

affect the interest of minority Shareholders. account as of the same date the amount of the interim cash

dividend distribution is expected to be RMB2.32 billion accounting

The Company will continue to review and monitor its corporate for 40% of the profit attributable to owners of the Company for the

governance practices to ensure compliance with the CG Code. six months ended June 30 2025. The exact amount distributedInterim Report 2025 S.F. Holding Co. Ltd. 047

Corporate Governance and Other Information

047

therefor is subject to the actual distribution by the Company. Cash dividends distributed by the Company are denominated and declared in

RMB and payable in RMB to holders of A Shares and in HKD to holders of H Shares. The exchange rate for the dividend to be paid in HKD

will be the average central parity rate of RMB against HKD as announced by the People’s Bank of China during the five Business Days prior

to the date (exclusive) of the Board’s resolution on the dividend distribution plan being RMB1.00 per HKD1.0963.The Record Date for the 2025 interim dividend is September 15 2025. To determine H Shareholders’ entitlement to the 2025 interim dividend

the Company’s H share register will close from September 12 2025 to September 15 2025 (both days inclusive) with no H share transfers

registered during this period. In order to be entitled to receive the 2025 interim dividend the H Shareholders whose transfers of Shares have

not been registered shall lodge all transfer documents together with the relevant share certificates to Tricor Investor Services Limited at 17/F

Far East Finance Centre 16 Harcourt Road Hong Kong not later than 4:30 p.m. on September 11 2025.Please refer to the section headed “Reduction and Exemption of Dividend Tax” in the 2024 annual report of the Company for detailed information

on tax applicable to the dividend declared for the Shareholders.Issued Shares

As at June 30 2025 the Company issued a total of 4992692017 ordinary Shares. Details of movements in the share capital of the Company

during the Reporting Period are as follows:

Changes in the Reporting Period

Number of Number of

Shares as at Cancellation Shares as at

January 1 of repurchased Issuance of June 30

2025 Shares new Shares Total 2025

A Shares 4816186983(1) – 6505034 6505034 4822692017(2)

H Shares 170000000 – – – 170000000

Total 4986186983 – 6505034 6505034 4992692017

Notes:

(1) Including 20771358 A Shares which are treasury shares of the Company placed in the Company’s repurchase securities account.

(2) Including 23270358 A Shares which are treasury shares of the Company placed in the Company’s repurchase securities account.

Purchase Sale and Redemption of Listed Securities of the Company

During the six months ended June 30 2025 the particulars of listed securities repurchased by the Company on the Shenzhen Stock Exchange

are as follows:

Number of Shares Highest price Lowest price Aggregate

Date of repurchase repurchased paid per Share paid per Share Consideration

(A Shares) (RMB) (RMB) (RMB)

April 7 2025 2499000 41.20 39.33 100975115.00

Save as disclosed above neither the Company nor any of its subsidiaries purchased sold or redeemed any of the Company’s securities

(including sale of treasury shares) listed on the Hong Kong Stock Exchange or the Shenzhen Stock Exchange during the Reporting Period.048 S.F. Holding Co. Ltd. Interim Report 2025

Corporate Governance and Other Information

Sufficient Public Float

The Hong Kong Stock Exchange has granted the Company a waiver from strict compliance with the Listing Rules of SEHK so that the minimum

percentage of the H Shares from time to time held by the public shall be the higher of (a) 3.41% and (b) such percentage of H Shares to be

held by the public after the exercise of the Over-allotment Option (as defined in the Prospectus) of the enlarged issued share capital of the

Company. As disclosed in the Company’s announcement dated December 23 2024 the Over-allotment Option was not exercised and lapsed

on December 22 2024 therefore the minimum percentage of the H Shares to be held by the public shall be 3.41%. Under Rule 19A.13A of

the Listing Rules of SEHK the denominator for the calculation of minimum H Shares public float percentage shall not include any treasury

shares of the Company. As at June 30 2025 the Company held 23270358 treasury A Shares (the “Treasury A Shares”) which were the A

Shares repurchased by the Company and placed in the Company’s repurchase securities account and did not hold any treasury H Shares. On

the basis of the aforementioned as at the end of the Reporting Period the number of H Shares held by the public represented 3.42% of the

total issued share capital of the Company (excluding the Treasury A Shares) and the Directors confirmed that the Company has maintained

the minimum public float as required by the Hong Kong Stock Exchange under the Listing Rules of SEHK and the waiver granted by the Hong

Kong Stock Exchange during the Reporting Period.

2022 Stock Option Incentive Plan (A Shares)

The Company has adopted the 2022 Stock Option Incentive Plan as approved by the second extraordinary general meeting of 2022 on May

17 2022. The source of shares of the 2022 Stock Option Incentive Plan shall be the A Shares repurchased by the Company and placed in the

Company’s repurchase securities account and/or the A Shares issued to participants. All the options under the 2022 Stock Option Incentive

Plan have been granted before the Company’s listing on the Hong Kong Stock Exchange and no option will be further granted.Details of the options granted and their movements during the Reporting Period are as follows:

Outstanding Exercised Cancelled Outstanding

Name or as at during the during the as at

category of January 1 Reporting Reporting June 30

participants Date of grant Exercise price 2025 Period(1) Period(2) 2025(3)

Directors (on individual named basis):

Ho Chit May 30 2022 RMB40.199 366000 0 122000 244000

Wang Xin May 30 2022 RMB40.199 305000 0 122000 183000

Xu Bensong May 30 2022 RMB40.199 204000 0 68000 136000

Other eligible participants:

In aggregate May 30 2022 and RMB40.199 26420395 6505034 2827840 17087521

October 28 2022

Total 27295395 6505034 3139840 17650521

Notes:

(1) The weighted average closing price immediately before the date of exercise of options during the Reporting Period is RMB43.59.

(2) Including (i) options that cannot be exercised as individual performance targets were not achieved (ii) options that cannot be exercised as the

holding participant is no longer an employee of the Group and (iii) options exercisable but not exercised during the respective exercise period and

therefore lapsed with exercise prices being RMB40.199.

(3) Of these the exercise period for 50% of the outstanding options shall be from the first trading day after the 36-month anniversary of the grant date

to the last trading day before the 48-month anniversary of the grant date; the exercise period for the remaining 50% shall be from the first trading

day after the 48-month anniversary of the grant date to the last trading day before the 60-month anniversary of the grant date. The vesting period

of the options is from the grant date until the commencement of the exercise period.

(4) During the Reporting Period there was no options granted. Therefore the number of shares that may be issued in respect of options granted under

the 2022 Stock Option Incentive Plan during the Reporting Period divided by the weighted average number of shares of the relevant class in issue

(excluding treasury shares) is nil.Interim Report 2025 S.F. Holding Co. Ltd. 049

Corporate Governance and Other Information

049

Interests and Short Positions of Substantial Shareholders in Shares and Underlying

Shares of the Company

As at June 30 2025 so far as is known to the Directors the following persons (not being Directors or chief executive of the Company) had

or were deemed to have interests or shorts positions in the Shares underlying Shares or debentures of the Company which would fall to be

disclosed to the Company and the Hong Kong Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO or which were

required to be recorded in the register of interests required to be kept by the Company under section 336 of the SFO:

Approximate Approximate

percentage percentage

Number of of shareholding of shareholding

Class of Shares in the relevant in the total

Name of substantial Shareholder Shares Nature of interest interested(1) class of Shares(2) issued Shares(2)

Wang Wei(3) A Shares Interest of controlled corporation 2661927139 (L) 55.20% 53.32%

Mingde Holding(3) A Shares Beneficial owner 2561927139 (L)(4) 53.12% 51.31%

A Shares Interest of controlled corporation 100000000 (L) 2.07% 2.00%

Morgan Stanley(5) H Shares Interest of controlled corporation 19156539 (L) 11.27% 0.38%

8773771 (S) 5.16% 0.18%

Kenneth Cordele Griffin(6) H Shares Interest of controlled corporation 13403055 (L) 7.88% 0.27%

JPMorgan Chase & Co.(7) H Shares Beneficial owner 7062607 (L) 4.15% 0.14%

5915463 (S) 3.48% 0.12%

Investment manager 1526638 (L) 0.90% 0.03%

500000 (S) 0.29% 0.01%

Person having a security 226400 (L) 0.13% 0.005%

interest in Shares

Trustee 5000 (L) 0.003% 0.0001%

Approved lending agent 4422802 (L) 2.60% 0.09%

Mitsubishi UFJ Financial H Shares Interest of controlled corporation 12326400 (L) 7.25% 0.25%

Group Inc.(8)

BlackRock Inc.(9) H Shares Interest of controlled corporation 12187006 (L) 7.17% 0.24%

92800 (S) 0.05% 0.002%

BNP PARIBAS SA(10) H Shares Interest of controlled corporation 12142335 (L) 7.14% 0.24%

6830270 (S) 4.02% 0.14%

Bank of America H Shares Interest of controlled corporation 8539434 (L) 5.02% 0.17%

Corporation(11) 8277571 (S) 4.87% 0.17%

Notes:

(1) The letter “L” denotes the person’s long position in the Shares and the letter “S” denotes the person’s short position in the Shares.

(2) The calculation is based on the total number of 4992692017 issued Shares as at June 30 2025 comprised of 4822692017 A Shares (including

A Shares in the Company’s repurchase securities account) and 170000000 H Shares.050 S.F. Holding Co. Ltd. Interim Report 2025

Corporate Governance and Other Information

(3) Mr. Wang held the A Shares through Mingde Holding. Mingde Holding directly held 2561927139 A Shares and indirectly held 100000000 A

Shares through Shenzhen Weishun its wholly-owned subsidiary. Mr. Wang held 99.90% of the equity interest in Mingde Holding. Accordingly Mr.Wang was deemed to be interested in the A Shares held by Mingde Holding under Part XV of the SFO.

(4) Among them an aggregate of 878600000 A Shares were subject to pledges granted under certain loan bonds and credit facilities in favor of

certain PRC financial institutions regulated by NAFR and/or CSRC.

(5) Morgan Stanley was interested in an aggregate of 19156539 H Shares (long position) and 8773771 H Shares (short position) in the Company

which were held indirectly through certain corporations controlled by it including Morgan Stanley International Holdings Inc. Morgan Stanley

International Limited Morgan Stanley Investments (UK) and Morgan Stanley & Co. International plc. Among them 923256 H Shares (long position)

and 7095570 H Shares (short position) in the Company were held through unlisted derivatives (cash settled) and 1588529 H Shares (long position)

in the Company were held through listed derivatives (convertible instruments).

(6) Mr. Kenneth Cordele Griffin was interested in an aggregate of 13403055 H Shares (long position) in the Company which were held indirectly

through certain corporations controlled by him including Citadel Advisors Holdings LP Citadel GP LLC Citadel Kensington Global Strategies Fund

Ltd. Citadel Limited Partnership GFH HFEVA LLC KGSF Offshore Holdings Ltd. and WK MS Holdings I Ltd.

(7) JPMorgan Chase & Co. was interested in an aggregate of 13243447 H Shares (long position) 6415463 H Shares (short position) and 4422802

H Shares (lending pool) in the Company which were held respectively by it and indirectly through certain corporations controlled by it. Among

them 121142 H Shares (short position) in the Company were held through certain unlisted derivatives (physically settled) 173400 H Shares (long

position) and 5400943 H Shares (short position) in the Company were held through certain unlisted derivatives (cash settled) and 3713444 H

Shares (long position) in the Company were held through certain listed derivatives (convertible instruments).

(8) Mitsubishi UFJ Financial Group Inc. was interested in an aggregate of 12326400 H Shares (long position) in the Company which were held

indirectly through certain corporations controlled by it.

(9) BlackRock Inc. was interested in an aggregate of 12187006 H Shares (long position) and 92800 H Shares (short position) in the Company which

were held indirectly through certain corporations controlled by it. Among them 4056400 H Shares (long position) and 92800 H Shares (short

position) in the Company were held through unlisted derivatives (cash settled) and 3796006 H Shares (long position) in the Company were held

through listed derivatives (convertible instruments).

(10) BNP PARIBAS SA was interested in an aggregate of 12142335 H Shares (long position) and 6830270 H Shares (short position) in the Company

which were held respectively by it and indirectly through certain corporations controlled by it. Among them 12400580 H Shares (long position) and

515756 H Shares (short position) in the Company were held through listed derivatives (convertible instruments) 1140200 H Shares (long position)

and 613700 H Shares (short position) in the Company were held through unlisted derivatives (cash settled) and 7394 H Shares (long position) in

the Company were held through unlisted derivatives (physically settled).

(11) Bank of America Corporation was interested in an aggregate of 8539434 H Shares (long position) and 8277571 H Shares (short position) in the

Company which were held indirectly through certain corporations controlled by it. Among them 288824 H Shares (long position) in the Company

were held through listed derivatives (convertible instruments) and 738800 H Shares (long position) and 2027925 H Shares (short position) were

held through unlisted derivatives (cash settled).

(12) Pursuant to Section 336 of the SFO if certain conditions are met the Shareholders are required to submit a disclosure of interest notice. In the

event of changes in the shareholding of the Shareholders in the Company the Shareholders will not be required to notify the Company and the Hong

Kong Stock Exchange unless certain conditions are met. Therefore the latest shareholding of the Shareholders in the Company may be different

from the shareholding submitted to the Hong Kong Stock Exchange.Save as disclosed above as at June 30 2025 the Directors of the Company are not aware of any other person or corporation having an

interest or short position in the Shares and underlying Shares of the Company which would require to be disclosed to the Company under the

provisions of Divisions 2 and 3 of Part XV of the SFO or which were recorded in the register required to be kept by the Company pursuant

to section 336 of the SFO.Interim Report 2025 S.F. Holding Co. Ltd. 051

Corporate Governance and Other Information

051

Interests and Short Positions of Directors and Chief Executive in Shares Underlying

Shares and Debentures of the Company and its Associated Corporations

As at June 30 2025 the interests or short positions of the Directors and chief executive of the Company in the Shares underlying Shares

and debentures of the Company or its associated corporations (within the meaning of Part XV of the SFO) which (a) were required to be

notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and

short positions which were held or deemed to have under such provisions of the SFO); or (b) were required pursuant to section 352 of the

SFO to be recorded in the register referred to therein; or (c) were required to be notified to the Company and the Hong Kong Stock Exchange

pursuant to the Model Code were as follows:

Interest in Shares or Underlying Shares of the Company

Approximate Approximate

percentage of percentage of

shareholding in shareholding

Name of Director and Class of Number of the relevant in the total

chief executive Shares Nature of interest Shares interested(1) class of Shares(2) issued Shares(2)

Wang Wei A Shares Interest of controlled 2661927139 (L)(3) 55.20% 53.32%

corporation(3)

Ho Chit A Shares Beneficial Owner 366000 (L)(4) 0.01% 0.01%

Wang Xin A Shares Beneficial Owner 355000 (L)(5) 0.01% 0.01%

Xu Bensong A Shares Beneficial Owner 190200 (L)(6) 0.004% 0.004%

Lee Carmelo Ka Sze A Shares Beneficial Owner 38000 (L) 0.001% 0.001%

Notes:

(1) The letter “L” denotes the person’s long position in the Shares.

(2) The calculation is based on the total number of 4992692017 issued Shares as at June 30 2025 comprised of 4822692017 A Shares (including

A Shares in the Company’s repurchase securities account) and 170000000 H Shares.

(3) Including (i) 2561927139 A Shares held by Mingde Holding and (ii) 100000000 A Shares held by Shenzhen Weishun a wholly-owned subsidiary

of Mingde Holding. As at June 30 2025 Mr. Wang held 99.90% of the equity interests in Mingde Holding. Therefore Mr. Wang was deemed to

be interested in the A Shares held by Mingde Holding under Part XV of the SFO.

(4) Including (i) 122000 A Shares held by Mr. Ho and (ii) 244000 options granted to Mr. Ho under the 2022 Stock Option Incentive Plan.

(5) Including (i) 172000 A Shares held by Ms. Wang and (ii) 183000 options granted to Ms. Wang under the 2022 Stock Option Incentive Plan.

(6) Including (i) 54200 A Shares held by Mr. Xu and (ii) 136000 options granted to Mr. Xu under the 2022 Stock Option Incentive Plan.052 S.F. Holding Co. Ltd. Interim Report 2025

Corporate Governance and Other Information

Interest in Shares or Underlying Shares of the Associated Corporation of the Company

Total number

of shares/

Number of registered

Name of shares/registered capital of Approximate

Name of Director associated capital the associated percentage of

and chief executive corporation Nature of interest Class of interest interested(1) corporation equity interest

Wang Wei Mingde Holding Beneficial owner Registered capital RMB113286600 RMB113400000 99.90%

Wang Wei SF Intra-city Interest in a controlled H shares 364738662 (L) 745610609 48.92%

corporation(2) Unlisted domestic shares 171764898 (L) 171764898 100.00%

Wang Wei KLN Interest in a controlled H shares 931209117 (L) 1807429342 51.52%

corporation(3)

Notes:

(1) The letter “L” denotes the person’s long position in the shares of the associated corporation.

(2) Including 171764898 H shares and 171764898 domestic shares held by SF Taisen 75000000 H shares held by Beijing SF Intra-city Technology

Co. Ltd. (北京順豐同城科技有限公司) 117076764 H shares held by SF Holding (HK) and 897000 H shares held by Celestial Ocean Investment

Limited. Beijing SF Intra-city Technology Co. Ltd. is a non-wholly owned subsidiary of SF Technology while Celestial Ocean Investment Limited

is a wholly-owned subsidiary of SF Holding (HK) and both SF Technology and SF Holding (HK) are wholly-owned subsidiaries of SF Taisen. SF

Taisen is a wholly-owned subsidiary of the Company and therefore a non-wholly owned subsidiary of Mingde Holding which is held by Mr. Wang

as to approximately 99.90%. As such Mr. Wang was deemed to be interested in the shares of SF Intra-city.

(3) Being 931209117 shares of KLN held through Flourish Harmony Holdings Company Limited. Flourish Harmony Holdings Company Limited is

a wholly-owned subsidiary of Advance Harmony Holdings Company Limited. Advance Harmony Holdings Company Limited is a wholly-owned

subsidiary of SF Holding (HK). SF Holding (HK) is a wholly-owned subsidiary of SF Taisen. SF Taisen is a wholly-owned subsidiary of the Company

and therefore a non-wholly owned subsidiary of Mingde Holding which is held by Mr. Wang as to approximately 99.90%. As such Mr. Wang was

deemed to be interested in the shares of KLN.

(4) The shares of SF Intra-city and KLN held by Mr. Wang are all ordinary shares.

Save as disclosed above and so far as is known to the Directors Supervisors and chief executive of the Company as at June 30 2025

none of the Directors Supervisors or chief executive of the Company had or was deemed to have any other interests or short positions in the

Shares underlying Shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO)

(a) which were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the

SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO); or (b) which were

required pursuant to section 352 of the SFO to be entered in the register referred to therein; or (c) which were required to be notified to the

Company and the Hong Kong Stock Exchange pursuant to the Model Code.Employees

People-centric culture promotes sustainable growth internally and customer bonding externally. The Company is dedicated to creating a fair

just and open environment for its employees with the aim of establishing SF’s brand as a platform for global shining talents to realize their

dreams seek excellence and achieve career pride. The Company attracts talents through a fair recruitment policy and provides employees

with training opportunities good career development prospects and growth opportunities. The Company will continue to attract cultivate and

retain highly motivated talents with diversity and build an energetic workforce by enriching the Company’s talent pool.The Group adopts a comprehensive remuneration policy that takes into account various factors including market benchmarks individual

performance and the overall financial results of the Company. This approach ensures that compensation remains competitive and aligned

with both corporate’s overall development objectives and individual contribution levels of employees.As at June 30 2025 the Group had 148200 full-time employees around the world.Interim Report 2025 S.F. Holding Co. Ltd. 053

Corporate Governance and Other Information

053

Audit Committee and Review of Interim Continuing Disclosure Obligation Pursuant

Financial Information to the Listing Rules of SEHK

The Company has established an Audit Committee in compliance As at the end of the Reporting Period the Company does not have

with Rule 3.21 of the Listing Rules of SEHK and the CG Code any disclosure obligations under Rules 13.20 13.21 and 13.22 of

to monitor the implementation of the risk management policies the Listing Rules of SEHK.across the Company on an ongoing basis thereby ensuring that

the internal control system is effective in identifying managing and Material Events after the Reporting Period

mitigating risks involved in the business operations.The Audit Committee comprises all the independent non-executive On July 4 2025 the Company completed the allotment and

Directors namely Mr. Chan Charles Sheung Wai Mr. Lee Carmelo issuance of 70000000 new H Shares at the placing price of

Ka Sze and Dr. Ding Yi. Mr. Chan Charles Sheung Wai serves as HKD42.15 per H Share pursuant to the General Mandate (the

the chairman of the Audit Committee and has the appropriate “Placing of H Shares”). The gross proceeds from the Placing of H

professional qualifications as required under Rules 3.10(2) and 3.21 Shares were HKD2950.5 million.of the Listing Rules of SEHK. The Audit Committee has reviewed On July 10 2025 the Company’s wholly-owned subsidiary SF

interim results and the interim financial information of the Group for Holding Investment 2023 Limited completed the issuance of zero

the six months ended June 30 2025 and discussed matters with coupon guaranteed convertible bonds with an aggregate principalrespect to the accounting policies and practices adopted by the amount of HKD2950 million due 2026 (the “2026 ConvertibleCompany and internal control with senior management members Bond”). The 2026 Convertible Bond is unconditionally and

and PricewaterhouseCoopers the auditor of the Company. irrevocably guaranteed by the Company and is convertible at the

option of the holder thereof into H Shares of the Company at the

Changes in Information of Directors and initial conversion price of HKD48.47 per H Share. The Company will

Supervisors issue and allot shares converted from the 2026 Convertible Bond

under the General Mandate. The gross proceeds from the issuance

During the Reporting Period there were no changes in information of the 2026 Convertible Bond were HKD2950.0 million.of Directors and Supervisors of the Company that are required to be For further details please refer to the announcements of the

disclosed pursuant to Rule 13.51(B)(1) of the Listing Rules of SEHK. Company dated June 26 2025 July 4 2025 and July 10 2025.Relevant information is also disclosed in note 30 to the interim

condensed consolidated financial statements.054 S.F. Holding Co. Ltd. Interim Report 2025

Report on Review of Interim Financial Information

To the Board of Directors of S.F. Holding Co. Ltd.(Incorporated in the People’s Republic of China with limited liability)

Introduction Scope of Review

We have reviewed the interim financial information set out on pages We conducted our review in accordance with International Standard

55 to 104 which comprises the interim condensed consolidated on Review Engagements 2410 “Review of Interim Financialstatement of financial position of S.F. Holding Co. Ltd. (the Information Performed by the Independent Auditor of the Entity”. A

“Company”) and its subsidiaries (together the “Group”) as at review of interim financial information consists of making inquiries

June 30 2025 and the interim condensed consolidated statement primarily of persons responsible for financial and accounting

of profit or loss the interim condensed consolidated statement matters and applying analytical and other review procedures.of comprehensive income the interim condensed consolidated A review is substantially less in scope than an audit conducted

statement of changes in equity and the interim condensed in accordance with International Standards on Auditing and

consolidated statement of cash flows for the six-month period consequently does not enable us to obtain assurance that we would

then ended and selected explanatory notes. The Rules Governing become aware of all significant matters that might be identified in

the Listing of Securities on The Stock Exchange of Hong Kong an audit. Accordingly we do not express an audit opinion.Limited require the preparation of a report on interim financial

information to be in compliance with the relevant provisionsthereof and International Accounting Standard 34 “Interim Financial ConclusionReporting”. The directors of the Company are responsible for the

Based on our review nothing has come to our attention that causes

preparation and presentation of this interim financial information

us to believe that the interim financial information of the Group is notin accordance with International Accounting Standard 34 “Interimprepared in all material respects in accordance with InternationalFinancial Reporting”. Our responsibility is to express a conclusion

Accounting Standard 34 “Interim Financial Reporting”.on this interim financial information based on our review and to

report our conclusion solely to you as a body in accordance with

our agreed terms of engagement and for no other purpose. We do

not assume responsibility towards or accept liability to any other

person for the contents of this report.PricewaterhouseCoopers

Certified Public Accountants

Hong Kong August 28 2025Interim Report 2025 S.F. Holding Co. Ltd. 055

Condensed Consolidated Statement of Profit or Loss

For the six months ended June 30 2025

055

Six months ended June 30

Note 2025 2024

RMB’000 RMB’000

(Unaudited)

Revenue 4 146858174 134409720

Cost of revenue 7 (127797632) (116096281)

Gross profit 19060542 18313439

Selling and marketing expenses 7 (1762136) (1470892)

General and administrative expenses 7 (9120144) (9049272)

Research and development expenses 7 (1153311) (1301455)

Net reversal/(impairment losses) of impairment losses on

financial assets and contract assets 117104 (159872)

Other income 5 485428 572750

Other gains net 6 821866 293793

Operating profit 8449349 7198491

Finance income 8 155037 415064

Finance costs 8 (928361) (1230918)

Finance costs net (773324) (815854)

Share of loss of associates and joint ventures net 16 (36297) (62580)

Profit before income tax 7639728 6320057

Income tax expense 9 (1627325) (1559135)

Profit for the period 6012403 4760922

Attributable to:

Owners of the Company 5737699 4806714

Non-controlling interests 274704 (45792)

60124034760922

Earnings per share for profit attributable to the owners of the Company:

– Basic (RMB) 1.16 1.00

– Diluted (RMB) 1.16 1.00

The above condensed consolidated statement of profit or loss should be read in conjunction with the accompanying notes.056 S.F. Holding Co. Ltd. Interim Report 2025

Condensed Consolidated Statement of Comprehensive Income

For the six months ended June 30 2025

Six months ended June 30

20252024

RMB’000 RMB’000

(Unaudited)

Profit for the period 6012403 4760922

Other comprehensive income:

Items that may be reclassified to profit or loss

– Effective portion of changes in fair value of hedging instruments arising during the year (70072) (1012)

– Share of other comprehensive income of associates and joint ventures accounted

for using the equity method (6390) (10370)

– Currency translation differences of foreign operations 274856 (88599)

Items that will not be reclassified to profit or loss

– Fair value changes of equity investments designated at fair value through other

comprehensive income 168278 (1362163)

– Income tax effect (11297) 2467

Other comprehensive income for the period net of tax 355375 (1459677)

Total comprehensive income for the period 6367778 3301245

Attributable to:

Owners of the Company 5617090 3746395

Non-controlling interests 750688 (445150)

63677783301245

The above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.Interim Report 2025 S.F. Holding Co. Ltd. 057

Condensed Consolidated Statement of Financial Position

As at June 30 2025

057

June 30 December 31

Note 2025 2024

RMB’000 RMB’000

(Unaudited)

ASSETS

Non-current assets

Property plant and equipment 11 55891747 59174305

Right-of-use assets 12 21376908 19625629

Investment properties 13 7547509 7241199

Intangible assets 14 19104072 20036193

Deferred tax assets 2213586 2291994

Prepayments other receivables and other assets 15 2228094 1855035

Investments in associates and joint ventures 16 7092360 6203642

Financial assets at fair value through other comprehensive income 17 8152313 8231994

Financial assets at fair value through profit or loss 17 505009 477416

Total non-current assets 124111598 125137407

Current assets

Inventories 2326187 2432383

Contract assets 2714679 2740820

Trade and note receivables 18 29423230 27981633

Prepayments other receivables and other assets 15 10785306 10114543

Financial assets at fair value through other comprehensive income 17 165187 170913

Financial assets at fair value through profit or loss 17 27026920 11246156

Restricted cash 19 940735 1354303

Cash and cash equivalents 19 20742661 32646055

Total current assets 94124905 88686806

Total assets 218236503 213824213058 S.F. Holding Co. Ltd. Interim Report 2025

Condensed Consolidated Statement of Financial Position (Continued)

As at June 30 2025

June 30 December 31

Note 2025 2024

RMB’000 RMB’000

(Unaudited)

LIABILITIES

Non-current liabilities

Borrowings 20 24475155 26319260

Lease liabilities 12 9591592 7094483

Deferred tax liabilities 4240885 4414485

Other payables and accruals 22 221447 201037

Deferred income 1251961 1266359

Total non-current liabilities 39781040 39295624

Current liabilities

Trade and note payables 21 29077094 27395524

Contract liabilities 2034069 2039198

Borrowings 20 17057921 18365122

Lease liabilities 12 5442703 5501314

Financial liabilities at fair value through profit or loss 102683 105464

Income tax payable 1270321 1679132

Other payables and accruals 22 17260238 17061331

Advances from customers 45197 46283

Total current liabilities 72290226 72193368

Total liabilities 112071266 111488992

Net assets 106165237 102335221Interim Report 2025 S.F. Holding Co. Ltd. 059

Condensed Consolidated Statement of Financial Position (Continued)

As at June 30 2025

059

June 30 December 31

Note 2025 2024

RMB’000 RMB’000

(Unaudited)

EQUITY

Share capital 23 4992692 4986187

Less: Treasury shares 23 (859065) (758081)

Reserves 24 48558722 48624934

Retained earnings 42707381 39140246

Equity attributable to owners of the Company 95399730 91993286

Non-controlling interests 10765507 10341935

Total equity 106165237 102335221

The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.The financial statements on pages 55 to 104 were approved by the Board of Directors on August 28 2025 and were signed on its behalf.WANG Wei HO Chit

Chairman Director060 S.F. Holding Co. Ltd. Interim Report 2025

Condensed Consolidated Statement of Changes in Equity

For the six months ended June 30 2025

Attributable to owners of the Company

Less: Non-

Share Treasury Reserves Retained controlling

capital shares (Note 24) earnings Total interests Total equity

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

(Unaudited)

As at January 1 2025 4986187 (758081) 48624934 39140246 91993286 10341935 102335221

Comprehensive income:

Profit for the period – – – 5737699 5737699 274704 6012403

Other comprehensive income – – (120609) – (120609) 475984 355375

Total comprehensive income – – (120609) 5737699 5617090 750688 6367778

Transfer of gain on disposal of equity

investments at fair value through other

comprehensive income to retained

earnings – – (19113) 19113 – – –

Transactions with owners

Net proceeds from share option exercising 6505 – 254993 – 261498 – 261498

Capital injection from non-controlling

interests – – 802 – 802 30073 30875

Repurchase of shares – (100984) – – (100984) – (100984)

Share-based payment – – 33635 – 33635 9558 43193

Transaction with non-controlling interests

and others – – (205554) – (205554) (208146) (413700)

Profit appropriations to statutory reserve – – 3253 (3253) – – –

Business combination – – – – – 2113 2113

Dividends – – – (2186424) (2186424) (160714) (2347138)

Safety reserve appropriation – – 207453 – 207453 – 207453

Safety reserve utilisation – – (207453) – (207453) – (207453)

Others – – (13619) – (13619) – (13619)

As at June 30 2025 4992692 (859065) 48558722 42707381 95399730 10765507 106165237Interim Report 2025 S.F. Holding Co. Ltd. 061

Condensed Consolidated Statement of Changes in Equity (Continued)

For the six months ended June 30 2025

061

Attributable to owners of the Company

Less: Non-

Share Treasury Reserves Retained controlling

capital shares (Note 24) earnings Total interests Total equity

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

As at January 1 2024 4895202 (2575532) 51634675 38835999 92790344 10493316 103283660

Comprehensive income:

Profit/(loss) for the period – – – 4806714 4806714 (45792) 4760922

Other comprehensive income – – (1060319) – (1060319) (399358) (1459677)

Total comprehensive income – – (1060319) 4806714 3746395 (445150) 3301245

Transfer of loss on disposal of equity

investments at fair value through other

comprehensive income to retained

earnings – – 5060 (5060) – – –

Transactions with owners

Capital contribution of non-controlling

interests – – 127 – 127 28447 28574

Repurchase of shares – (1378503) – – (1378503) – (1378503)

Cancellation of shares (79291) 3575545 (3496254) – – – –

Share-based payment – – 62186 – 62186 7754 69940

Transaction with non-controlling interests

and others – – (3760142) – (3760142) 420549 (3339593)

Business combination – – – – – 17333 17333

Dividends – – – (2889210) (2889210) (182096) (3071306)

Safety reserve appropriation – – 272081 – 272081 – 272081

Safety reserve utilisation – – (272081) – (272081) – (272081)

As at June 30 2024 4815911 (378490) 43385333 40748443 88571197 10340153 98911350

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.062 S.F. Holding Co. Ltd. Interim Report 2025

Condensed Consolidated Statement of Cash Flows

For the six months ended June 30 2025

Six months ended June 30

Note 2025 2024

RMB’000 RMB’000

(Unaudited)

Cash flows from operating activities

Cash generated from operations 25(a) 15109107 15214009

Income tax paid (2172417) (1491740)

Net cash generated from operating activities 12936690 13722269

Cash flows from investing activities

Redemption of financial assets at fair value through profit or loss 50574710 28382311

Disposal of financial assets at fair value through other comprehensive

income 25064 8440

Proceeds from sales of associates and joint ventures 4279 341706

Investment gains or dividend income from financial assets at fair value

through profit or loss 264312 230534

Dividends received from associates and joint ventures 138699 137225

Investment gains or dividend income from financial assets at fair

value through other comprehensive income 1849 19581

Proceeds from disposal of property plant and equipment and

other non-current assets 77057 179381

Disposal of subsidiaries net of cash and cash equivalents held by

subsidiaries at the disposal dates 26 1906107 153596

Repayment from former subsidiaries 1149220 316655

Purchase of property plant and equipment and other non-current assets (4138165) (5075259)

Acquisition of financial assets at fair value through other comprehensive

income – (49750)

Acquisition of financial assets at fair value through profit or loss (66352871) (39460448)

Acquisition of associates and joint ventures (1146005) (14141)

Acquisition of subsidiaries net of cash and cash equivalents held

by subsidiaries at the acquisition dates (21131) (614384)

Net cash used in investing activities (17516875) (15444553)Interim Report 2025 S.F. Holding Co. Ltd. 063

Condensed Consolidated Statement of Cash Flows (Continued)

For the six months ended June 30 2025

063

Six months ended June 30

Note 2025 2024

RMB’000 RMB’000

(Unaudited)

Cash flows from financing activities

Capital injection from non-controlling interests 31665 27968

Drawdown of bank borrowings 15546599 19578781

Drawdown of loans from non-controlling interests and other parties 248770 5542

Exercise of share options 261498 –

Proceeds from corporate bonds and short-term debentures 2499378 3297638

Deposits received from lessors after the expiry of lease contracts 10090 9978

Repayment of bank borrowings (18751194) (15680047)

Repayment of corporate bonds and short-term debentures (2048572) (957181)

Dividend paid to non-controlling interests (315310) (182096)

Dividend paid – (2889210)

Interests paid (669395) (952574)

Repayment of loans from non-controlling interests (21645) –

Net cash consideration paid to non-controlling interests

without change of control (399941) (3353487)

Payments for repurchase of shares (100984) (1378503)

Payments of lease liabilities (3553854) (3704784)

Payment of transaction costs related to financing activities (17869) (3890)

Net cash used in financing activities (7280764) (6181865)

Net decrease in cash and cash equivalents (11860949) (7904149)

Cash and cash equivalents at beginning of the period 32646055 40448308

Exchange gains on cash and cash equivalents (42445) (28170)

Cash and cash equivalents at end of the period 20742661 32515989

The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.064 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

1. General information 2. Basis of Preparation and

Accounting Policies

S.F. Holding Co. Ltd. (“S.F. Holding” or “the Company”) formerly

known as Ma’anshan Dingtai Science & Technology Co. Ltd was

incorporated in the People’s Republic of China (“PRC”) in 2003. 2.1 Basis of Preparation

The address of its registered office is 3/F Complex Building

SF South China Transit Center No. 1111 Hangzhan 4th Road These unaudited condensed consolidated interim financialShenzhen Airport Caowei Community Hangcheng Sub-district information are prepared in accordance with IAS 34 “InterimBao’an District Shenzhen. Financial Reporting” issued by the International Accounting

Standards Board (“IASB”) and the disclosure requirements to the

The Company is an investment holding company. The Company Listing Rules of HKEx. These unaudited condensed consolidated

and its subsidiaries are principally engaged in the development interim financial information should be read in conjunction with

of logistics ecosystem including express delivery freight delivery the annual financial statements for the year ended December 31

cold chain and pharmaceutical logistics intra-city on-demand 2024 which have been prepared in accordance with International

delivery international logistics service and supply chain solutions. Financial Reporting Standards (the “IFRS accounting standards”)

The Company’s shares are listed on Shenzhen Stock Exchange issued by the IASB.(“SZSE”) and The Stock Exchange of Hong Kong Limited (“HKEx”).The accounting policies used in the preparation of these condensed

As at June 30 2025 the Company had 4992692017 shares consolidated interim financial information are consistent with

issued and outstanding of which 4822692017 shares were listed those used in the annual financial statements for the year ended

on the SZSE (“A Shares”) and 170000000 shares were listed on December 31 2024 except for the adoption of new and amended

the HKEx (“H Shares”). IFRS Accounting Standards as set out below.Shenzhen Mingde Holding Development Co. Ltd. a private The condensed consolidated financial statements are presented

company incorporated in the PRC is the ultimate holding company. in Renminbi (“RMB”) and all values are rounded to the nearest

Hangzhou SF Intra-city Industrial Co. Ltd. an indirect non-wholly thousand (RMB’000) except when otherwise indicated.owned subsidiary of the Company is a listed company on the

Main Board of HKEx and primarily engaged in intra-city on-demand 2.2 New and Amended IFRS Accounting

delivery services. Standards

KLN Logistics Group Limited (“KLN” formerly Kerry Logistics

Network Limited) an indirect non-wholly-owned subsidiary of the (a) New standards and interpretations adopted by

Company is a listed company on the Main Board of HKEx and the Group

primarily engaged in the provision of logistics and freight forwarding

The following amendments to existing standards and interpretation

services.have been published that are effective for the accounting period of

KEX Express (Thailand) Public Company Limited (hereafter “KEX”) the Group beginning on January 1 2025:

an indirect non-wholly-owned subsidiary of the Company is a listed

Amendments to IFRS 1 and IAS 21 ‘Lack of Exchangeability’

company on the Main Board of the Stock Exchange of Thailand

Limited (“SET”) and primarily engaged in providing domestic and In the current interim period the Group has applied for the

international parcel delivery service. first time the above amendments to existing standards and

interpretation issued by the IASB. The adoption of the above

amendments to existing standards and interpretation had no

material impact on the Group’s accounting policies and did not

require retrospective adjustments.Interim Report 2025 S.F. Holding Co. Ltd. 065

Notes to the Condensed Consolidated Financial Statements

065

2. Basis of Preparation and Accounting Policies (Continued)

2.2 New and Amended IFRS Accounting Standards (Continued)

(b) Impact of IFRS Accounting Standards issued but not yet applied by the Group

Standards amendments to existing standards and interpretations that have been issued but not yet effective and have not been early adopted

by the Group are as follows:

Effective for annual periods

beginning on or after

Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments January 1 2026

Annual Improvements Annual Improvements to IFRS Accounting Standards – Volume 11 January 1 2026

IFRS 18 Presentation and Disclosure in Financial Statements January 1 2027

IFRS 19 Subsidiaries without Public Accountability: Disclosures January 1 2027

The Group has already commenced an assessment of the impact of these new or revised standards and amendments certain of which are

relevant to the Group’s operations. According to the preliminary assessment made by the directors no significant impact on the financial

performance and positions of the Group is expected when they become effective except for certain presentation adjustment might be raised

due to the adoption of IFRS 18.Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. The

preparation of condensed consolidated interim financial information requires management to make judgements estimates and assumptions

that affect the application of accounting policies and the reported amounts of assets and liabilities income and expense. Actual results may

differ from these estimates.In preparing these condensed consolidated interim financial information the significant judgements made by management in applying the

Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual financial

statements for the year ended December 31 2024 except for the adoption of amendments to existing standards and interpretation as set

out above.

3. Financial Risk Management

3.1 Financial Risk Factors

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk price risk and interest rate risk)

credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks

to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out by the directors and senior

management of the Group.These condensed consolidated interim financial information do not include all financial risk management information and disclosures required

in the annual financial statements; and should be read in conjunction with the Group’s annual financial statements at December 31 2024.There have been no changes in the Group’s financial risk management structure and policies since the year end.

3.2 Fair Value Estimation

The table below analyzes the Group’s financial instruments carried at fair value at June 30 2025 and December 31 2024 by level of the

inputs to valuation techniques used to measure fair value. Such inputs are categorized into three levels within a fair value hierarchy as follows:

* Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);

* Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (that is as prices)

or indirectly (that is derived from prices) (level 2); and

* Inputs for the asset or liability that are not based on observable market data (that is unobservable inputs) (level 3).066 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

3. Financial Risk Management (Continued)

3.2 Fair Value Estimation (Continued)

As at June 30 2025 and December 31 2024 the financial assets measured at fair value on a recurring basis by the above three levels were

analyzed below:

Level 1 Level 2 Level 3 Total

RMB’000 RMB’000 RMB’000 RMB’000

As at June 30 2025

Non-current:

Financial assets at fair value through profit or loss

(“FVPL”)

– Industry fund investments – – 304554 304554

– Others – – 200455 200455

Financial assets at fair value through other

comprehensive income (“FVOCI”)

Equity investment in entities at fair value 1100088 – 7052225 8152313

Current:

Financial assets at FVPL

– Structured deposits – – 26928678 26928678

– Fund investment and others 79 15461 82702 98242

Financial assets at FVOCI

– Notes held for sale – 165187 – 165187

As at December 31 2024

Non-current:

Financial assets at FVPL

– Industry fund investments – – 331815 331815

– Others – – 145601 145601

Financial assets at FVOCI

– Equity investment in entities at fair value 1033218 – 7198776 8231994

Current:

Financial assets at FVPL

– Structured deposits – – 11015904 11015904

– Fund investment and others 78 2797 227377 230252

Financial assets at FVOCI

– Notes held for sale – 170913 – 170913

The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not

traded in an active market is determined by the Group using valuation technique. The valuation models used mainly comprise discounted cash

flow model and market comparable company model. The major inputs of the valuation models include expected rate of return and discount

of lack of market liquidity.Interim Report 2025 S.F. Holding Co. Ltd. 067

Notes to the Condensed Consolidated Financial Statements

067

3. Financial Risk Management (Continued)

3.2 Fair Value Estimation (Continued)

The changes in Level 3 assets for the six months ended June 30 2025 are analyzed below:

Financial assets

Financial assets at FVPL at FVOCI

Current Non-Current Non-Current

Equity

Fund Industry investment

Structured investment fund in entities

deposits and others investments Others at fair value

Opening balance 11015904 227377 331815 145601 7198776

Additions 66319000 – – 31340 –

Transfer from Level 1 – – – – 131

Reclassification – (30000) – 30000 –

Disposals/settlements (50607362) (123340) (43751) (11289) (1481)

Changes in fair value recognized in profit or loss 201137 11882 19215 5938 –

Changes in fair value recognized in other

comprehensive income – – – – 47328

Currency translation differences (1) (3217) (2725) (1135) (192529)

Closing balance 26928678 82702 304554 200455 7052225

The Group has assessed that the fair values of cash and cash equivalents restricted bank deposits trade receivables trade and note payables

financial assets included in prepayments and other receivables financial liabilities included in other payables and accruals short-term bank

borrowings and short-term debentures approximate to their carrying amounts largely due to the short-term maturities of these instruments.For the six months ended June 30 2025 there were no significant transfers among Level 1 2 and 3 of fair value measurements.068 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

3. Financial Risk Management (Continued)

3.2 Fair Value Estimation (Continued)

The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements

and the sensitivity analysis of fair value to the inputs:

Fair value

Range of inputs

As at As at Significant (probability-

June 30 December 31 Valuation unobservable weighted

Description 2025 2024 technique(s) input(s) average) Sensitivity of fair value to the input(s)

RMB’000 RMB’000

Current:

Financial assets at FVPL

– Structured deposits 26928678 11015904 Discounted Expected rate 1.40%-4.00% 10% increase/decrease in expected rate of

cash flow 　of return 　return would result in increase/decrease

in fair value by 0.03%-0.04%

– Fund investment and others 82702 227377 Adjusted net Adjusted net N/A 10% increase/decrease in adjusted net

assets value 　assets value 　assets value would result in increase/

decrease in fair value by 10%

Non-current:

Financial assets at FVPL

– Industry fund investments 304554 331815 Adjusted net Adjusted net N/A 10% increase/decrease in adjusted net

assets value 　assets value 　assets value would result in increase/

decrease in fair value by 10%

– Others 200455 145601 Recent transaction N/A N/A N/A

price

Financial assets at FVOCI

– Equity investment in entities at fair 7052225 7198776 Recent transaction Discount for lack 11%-17% 10% increase/decrease in discount for lack

value 　price or a 　of marketability 　of marketability would result in decrease/

combination of 　increase in fair value by 1.26%-2.11%

observable and

unobservable

inputs

Total 34568614 18919473Interim Report 2025 S.F. Holding Co. Ltd. 069

Notes to the Condensed Consolidated Financial Statements

069

4. Revenue and Segment Information The segment businesses are separately presented as the express

and freight delivery segment the intra-city on-demand delivery

Operating segments are reported in a manner consistent with the segment and supply chain and international segment. The types

internal reporting provided to the chief operating decision-maker of services from which reportable segments derive revenue are

(“CODM”). The CODM who is responsible for allocating resources listed below:

and assessing performance of the operating segments has been * Express and freight delivery segment which provides

identified as the executive management team that makes strategic time-define express economy express cold chain and

decisions. pharmaceuticals logistics service as well as freight service;

(a) CODM Reviews the Group’s Internal * Intra-city on-demand delivery segment which provides

intra-city delivery for merchants and consumers and last-

Reporting in Order to Assess mile delivery services;

Performance and Allocate Resources: * Supply chain and international segment which provides

The CODM identifies operating segments based on the internal supply chain services international express service and

organization structure management requirements and internal international freight forwarding service.reporting system and discloses segment information of reportable Except for the above business segments the other segments did

segments which is determined on the basis of operating segments. not have a material impact on the Group’s operating outcome and

An operating segment is a component of the Group that satisfies as such are not separately presented. Management monitors the

all of the following conditions: (1) the component is able to operating results of the Group’s business units separately for the

earn revenues and incur expenses from its ordinary activities; (2) purpose of making decisions regarding resource allocation and

whose operating results are regularly reviewed by the Group’s performance assessment.management to make decisions about resources to be allocated to

the segment and to assess its performance and (3) for which the Segment performance is assessed based on key performance

information on financial position operating results and cash flows indicators. Transfer prices between operating segments are based

is available to the Group. If two or more operating segments have on the amount stated in the contracts agreed by both sides.similar economic characteristics and satisfy certain conditions they

For the six months ended June 30 2025 and 2024 no revenue

are aggregated into one single operating segment.from a single customer exceeded 10% or more of the total revenue.070 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

4. Revenue and Segment Information (Continued)

(a) CODM Reviews the Group’s Internal Reporting in Order to Assess Performance and

Allocate Resources: (Continued)

The table below shows the segment information for the six months ended June 30 2025:

Intra-city

Express and Supply chain on-demand

freight delivery and international delivery Undistributed Inter-segment

segment segment segment units elimination Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Revenue from external customers 104772845 35768179 5582531 734619 – 146858174

Inter-segment revenue 4205446 961448 4653419 2427769 (12248082) –

Cost of revenue 92919243 33704619 9561887 2705907 (11094024) 127797632

Profit before income tax 6349245 114196 157843 1083888 (65444) 7639728

Income tax expenses 964567 410103 20794 240775 (8914) 1627325

Net profit/(loss) 5384678 (295907) 137049 843113 (56530) 6012403

Total assets 105853049 64227110 4952282 154729917 (111525855) 218236503

Total liabilities 75830311 57692288 1970058 69497472 (92918863) 112071266

Depreciation of right-of-use assets (Note 7) 2729313 789829 6681 143512 (332174) 3337161

Depreciation and amortization

(excluding right-of-use assets) (Note 7) 3657347 763324 25470 423947 (9942) 4860146

Net reversal/(impairment losses) of

impairment losses on financial

assets and contract assets (6400) (113195) 1699 (29879) 30671 (117104)Interim Report 2025 S.F. Holding Co. Ltd. 071

Notes to the Condensed Consolidated Financial Statements

071

4. Revenue and Segment Information (Continued)

(a) CODM Reviews the Group’s Internal Reporting in Order to Assess Performance and

Allocate Resources: (Continued)

The table below shows the segment information for the six months ended June 30 2024:

Intra-city

Express and Supply chain on-demand

freight delivery and international delivery Undistributed Inter-segment

segment segment segment units elimination Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Revenue from external customers 96820175 32914104 4022952 652489 – 134409720

Inter-segment revenue 6340531 447518 2855518 2545639 (12189206) –

Cost of revenue 87693668 30636136 6407319 2472311 (11113153) 116096281

Profit/(loss) before income tax 5842143 (236145) 80572 606498 26989 6320057

Income tax expenses 1046410 338068 18398 156427 (168) 1559135

Net profit/(loss) 4795733 (574213) 62174 450071 27157 4760922

Total assets 106075703 64294283 4117315 162056001 (116677371) 219865931

Total liabilities 71306112 56051461 1355096 91319878 (99077966) 120954581

Depreciation of right-of-use assets (Note 7) 2885910 836623 8252 141397 (443266) 3428916

Depreciation and amortization

(excluding right-of-use assets) (Note 7) 3279143 808175 24862 1250722 (2168) 5360734

Net reversal/(impairment losses) of

impairment losses on financial

assets and contract assets 41848 122046 3835 19289 (27146) 159872072 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

4. Revenue and Segment Information (Continued)

(b) Disaggregation of Revenue

In the following table revenue of the Group from contracts with customers is disaggregated by timing of satisfaction of performance obligations.The table also includes a reconciliation to the segment information in respect of revenue of the Group that is disclosed in the operating

segment Note 4(a).Six months ended June 30 2025

Logistics and

freight forwarding

services Sales of goods Others Total

RMB’000 RMB’000 RMB’000 RMB’000

Revenue from main operations

At a point in time – 2361627 259362 2620989

Over time 143530874 – 255439 143786313

Lease income – – 189652 189652

1435308742361627704453146596954

Revenue from other operations

At a point in time – – 93667 93667

Over time – – 38527 38527

Lease income – – 129026 129026

––261220261220

Total 143530874 2361627 965673 146858174Interim Report 2025 S.F. Holding Co. Ltd. 073

Notes to the Condensed Consolidated Financial Statements

073

4. Revenue and Segment Information (Continued)

(b) Disaggregation of Revenue (Continued)

Six months ended June 30 2024

Logistics and

freight forwarding

services Sales of goods Others Total

RMB’000 RMB’000 RMB’000 RMB’000

Revenue from main operations

At a point in time – 3216236 208598 3424834

Over time 130207965 – 413658 130621623

Lease income – – 174027 174027

1302079653216236796283134220484

Revenue from other operations

At a point in time – – 34616 34616

Over time – – 72947 72947

Lease income – – 81673 81673

––189236189236

Total 130207965 3216236 985519 134409720

5. Other Income

Six months ended June 30

20252024

RMB’000 RMB’000

Government grants (Note (a)) 317688 404911

Dividend income 1360 426

Others 166380 167413

Total 485428 572750

(a) The government grants were mainly incentives provided by local government authorities in the PRC including various forms of

government financial incentives and tax preferences to reward the Group’s support and contribution to the development of local

economies. As at June 30 2025 and 2024 there were no unfulfilled conditions or contingencies relating to these government grants.074 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

6. Other Gains Net

Six months ended June 30

20252024

RMB’000 RMB’000

Gains on disposal of investments in associates and joint ventures 11712 45307

Gains on disposal of investments in subsidiaries (Note 26(b)) 777717 91950

Fair value changes in financial assets at FVPL 293339 238687

(Losses)/gains on disposal of property plant and equipment right-of-use assets

and other non-current assets (55366) 39097

Impairment of inventories property plant and equipment and other non-current assets (43644) (1309)

Net exchange (losses)/gains (125935) 4703

Gains on repurchase of corporate bonds 65199 55982

Others (101156) (180624)

Total 821866 293793

7. Expenses by Nature

Expenses included in cost of revenue selling and marketing expenses general and administrative expenses and research and development

expenses are analyzed as follows:

Six months ended June 30

20252024

RMB’000 RMB’000

Labour outsourcing cost 54280302 46426202

Transportation expenses 26171863 24040343

Transportation outsourcing cost 20602909 18725511

Employee benefit expenses 16751576 16170240

Depreciation and amortization (excluding right-of-use assets) 4860146 5360734

Rent and venue usage expenses 3816529 3599946

Depreciation of right-of-use assets (Note 12(b)) 3337161 3428916

Others 10012737 10166008

Total 139833223 127917900

(a) Government grants amounting to approximately RMB612658000 and RMB511053000 had been recognized as deduction in the

cost of revenue for the six months ended June 30 2025 and 2024 respectively.Interim Report 2025 S.F. Holding Co. Ltd. 075

Notes to the Condensed Consolidated Financial Statements

075

8. Finance Income and Costs

Six months ended June 30

20252024

RMB’000 RMB’000

Finance income:

Interest income on deposits in financial institutions 155037 415064

Finance costs:

Interest expenses on borrowings 695519 997654

Interest expenses on lease liabilities (Note 12 (b)) 243551 262301

Less: Interest capitalized (10709) (29037)

9283611230918

Finance costs net 773324 815854

9. Income Tax Expense

The following table sets forth the components of income tax expense of the Group for the six months ended June 30 2025 and 2024

respectively:

Six months ended June 30

20252024

RMB’000 RMB’000

Current income tax 1659277 1421021

Deferred income tax (31952) 138114

Total 1627325 1559135076 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

9. Income Tax Expense (Continued)

Reconciliation between income tax expenses and profit before income tax at applicable tax rates for the six months ended June 30 2025

and 2024:

Six months ended June 30

20252024

RMB’000 RMB’000

Profit before income tax 7639728 6320057

Tax at the statutory tax rate of 25% (Note (a)) 1909932 1580014

Effect of different tax rates available to different jurisdictions (Note (b)) (128644) (83097)

Tax effect of non-taxable income (36382) (42290)

Adjustments of prior years (56142) (19336)

Tax effect of non-deductible expenses 78781 136854

Tax effect of preferential tax rate (Note (a)) (137085) (77079)

Tax losses and temporary differences not recognized 284032 348380

Reversal of previously recognized tax losses and temporary differences 132189 27527

Utilization of previously unrecognized tax losses and temporary differences (289923) (213421)

Recognition of tax losses and temporary differences not recognized in prior years (129433) (98417)

Total 1627325 1559135

(a) PRC Corporate Income Tax (“PRC CIT”)

The income tax rate applicable to the principal subsidiaries in PRC is 25% (2024: 25%) for the six months ended June 30 2025 except for

certain subsidiaries which enjoy a preferential income tax rate.(b) Corporate Income Tax in Hong Kong and Other Jurisdictions

(i) Hong Kong profits tax

Hong Kong profits tax has been provided for at the rate of 8.25% (2024: 8.25%) on assessable profits up to HKD2 million and 16.5% (2024:

16.5%) on any assessable profits over HKD2 million for the six months ended June 30 2025.

(ii) Corporate income tax in other jurisdictions

Income tax on the overseas profits has been calculated on the estimated assessable profit for the period at the rates of taxation prevailing in

the overseas countries in which the Group operates.(c) OECD Pillar Two Model Rules

The Group is within the scope of the Pillar Two model rules released by the Organization for Economic Co-operation and Development (“OECD”).The Pillar Two legislation had become effective in certain jurisdictions on January 1 2025. The Group applies the exception to recognizing and

disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes as provided in the amendments to IAS 12.Under the Pillar Two legislation the Group is liable to pay a top-up tax for difference between its Global Anti-Base Erosion (“GloBE”) effective

tax rate in each jurisdiction and the 15% minimum rate. The Group management’s assessment indicates that the quantitative impact of the

Pillar Two legislation is insignificant to the Group.

10. Dividends

An interim dividend for the six months ended June 30 2025 of RMB46 cents per ordinary share (tax inclusive) (for the six months ended June

30 2024: an interim dividend of RMB40 cents per share and a special dividend of RMB100 cents per share) were approved by the directors

on August 28 2025. The dividends were not recognized as liabilities as at June 30 2025.Interim Report 2025 S.F. Holding Co. Ltd. 077

Notes to the Condensed Consolidated Financial Statements

077

11. Property Plant and Equipment

Aircraft aircraft

engines rotables Computers and

Freehold land and high-value Machinery Transportation electronic Office and Leasehold Construction

and buildings maintenance and equipment vehicles equipment other equipment improvements in progress Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Cost

As at January 1 2025 31482160 17584109 16359012 7057016 5235100 10373993 8226138 2985702 99303230

Additions 4986 333405 167035 667091 318732 146340 134390 1709102 3481081

Disposals (46099) (134769) (170582) (406079) (195464) (157636) (100063) (14251) (1224943)

Disposal of subsidiaries (1847175) – (8996) (443) (2973) (2189) (28818) – (1890594)

Transfer/reclassification (52465) 679112 171009 – 13024 14699 219748 (2058232) (1013105)

Currency translation differences (16259) (607) 108206 23773 5662 (881) 44196 – 164090

As at June 30 2025 29525148 18461250 16625684 7341358 5374081 10374326 8495591 2622321 98819759

Accumulated depreciation

As at January 1 2025 3665775 7964929 5879587 4913234 4089146 7426406 6095509 – 40034586

Charge for the period (Note (b)) 402868 809120 892749 503460 249802 632968 534409 – 4025376

Disposals (42) (125790) (88339) (359145) (176362) (118881) (75077) – (943636)

Disposal of subsidiaries (182927) – (3966) (234) (2859) (1414) (16049) – (207449)

Transfer/reclassification (111471) – – – – – – – (111471)

Currency translation differences 8880 – 8878 12558 (1724) (4717) 17966 – 41841

As at June 30 2025 3783083 8648259 6688909 5069873 4158003 7934362 6556758 – 42839247

Accumulated impairment

As at January 1 2025 – – 44572 40516 7915 1209 127 – 94339

Charge for the period 34580 – – – – – (127) – 34453

Disposal of subsidiaries – – (2862) (4854) (1141) (386) – – (9243)

Transfer/reclassification (34580) – – – – – – – (34580)

Currency translation differences – – 1767 1290 618 121 – – 3796

As at June 30 2025 – – 43477 36952 7392 944 – – 88765

Net book value

As at June 30 2025 (Note (a)) 25742065 9812991 9893298 2234533 1208686 2439020 1938833 2622321 55891747

(a) Certain property plant and equipment with a net carrying amount of approximately RMB500204000 at June 30 2025 (December

31 2024: RMB490886000) were pledged as securities for bank loan facilities and bank overdrafts granted to the Group (Note 20).

(b) Depreciation amounting to approximately RMB4001493000 had been recognized in condensed consolidated statement of profit or

loss for the six months ended June 30 2025 (six months period ended June 30 2024: RMB4016667000).078 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

12. Lease

This note provides information for leases where the Group is a lessee.(a) Amounts Recognized in the Condensed Consolidated Statement of Financial Position

The Group

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Right-of-use assets

Buildings 14975445 12730196

Leasehold land and land use rights 6311905 6783528

Motor vehicles 62555 81877

Equipment and others 27003 30028

Total 21376908 19625629

Lease liabilities

Current 5442703 5501314

Non-current 9591592 7094483

Total 15034295 12595797

Additions to the right-of-use assets for the six months period ended June 30 2025 were approximately RMB6006348000 (six months period

ended June 30 2024: RMB3050180000).Leasehold land and land use rights with a net carrying amount of approximately RMB173923000 at June 30 2025 (At December 31 2024:

RMB203922000) were pledged as securities for bank loan facilities and bank overdrafts granted to the Group (Note 20).Interim Report 2025 S.F. Holding Co. Ltd. 079

Notes to the Condensed Consolidated Financial Statements

079

12. Lease (Continued)

(b) Amounts Recognized in the Condensed Consolidated Statement of Profit or Loss

The condensed consolidated statement of profit or loss show the following amounts relating to leases:

Six months ended June 30

20252024

RMB’000 RMB’000

Depreciation charge of right-of-use assets

Buildings 3197926 3238874

Leasehold land and land use rights 104903 97150

Motor vehicles 26294 79772

Equipment and others 8038 13120

Total 3337161 3428916

Interest expenses (Note 8) 243551 262301

Expense relating to short-term leases and low-value assets

(included in costs and expenses) 2108487 1885251

Total cash outflow for leases (included in operating and financing cash outflow) 5788850 5703150

The Group has various lease contracts that have not yet commenced at June 30 2025 and December 31 2024. The future lease payments

for these non-cancellable lease contracts are as below:

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Within 1 year (including 1 year) 973551 893228

Between 1 and 2 years (including 2 years) 418015 529230

Between 2 and 3 years (including 3 years) 400548 489211

Over 3 years 225919 2733760

Total 2018033 4645429080 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

13. Investment Properties

As at June 30

2025

RMB’000

Cost

At the beginning of the period 7853577

Disposals (11341)

Disposal of subsidiaries (254536)

Transfer/reclassification 731776

Exchange adjustment (1575)

At the end of the period 8317901

Accumulated depreciation

At the beginning of the period 612378

Charge for the period 72106

Disposals (367)

Disposal of subsidiaries (19466)

Transfer/reclassification 95322

Exchange adjustment 10419

At the end of the period 770392

Net book value

At the end of the period (Note (a)) 7547509

(a) Certain investment properties with a net carrying amount of approximately RMB117759000 at June 30 2025 (At December 31

2024: RMB111847000) were pledged as securities for bank loan facilities and bank overdrafts granted to the Group (Note 20).Interim Report 2025 S.F. Holding Co. Ltd. 081

Notes to the Condensed Consolidated Financial Statements

081

13. Investment Properties (Continued)

(b) Leasing arrangements

The Group leases various offices and warehouses to lessees under non-cancellable operating lease agreements with rentals receivable monthly.The lease terms are mainly between 1 year and 5 years and the majority of lease agreements are renewable at the end of the lease period

at market rates. Minimum lease payments receivable on leases of investment properties are as follows:

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Land and buildings:

Within 1 year (including 1 year) 604318 418210

Between 1 and 2 years (including 2 years) 386760 314925

Between 2 and 3 years (including 3 years) 279440 223282

Between 3 and 4 years (including 4 years) 64992 148307

Between 4 and 5 years (including 5 years) 27361 113522

Over 5 years 143792 262618

Total 1506663 1480864082 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

14. Intangible Assets

Development Customer

expenditures Goodwill relationships Software Trademarks Others Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Cost

As at January 1 2025 82489 10006800 6162481 8591189 5152893 363723 30359575

Additions 329320 2204 – 5521 4 11101 348150

Disposals (251128) – – (55017) – (646) (306791)

Transfer/reclassification – – – 251128 – – 251128

Currency translation differences – (238515) (127125) 1357 (140292) (3171) (507746)

As at June 30 2025 160681 9770489 6035356 8794178 5012605 371007 30144316

Accumulated amortization

As at January 1 2025 – – 1518028 7144358 1318229 239089 10219704

Charge for the period – – 174093 516424 114058 12530 817105

Disposals – – – (34312) – (1539) (35851)

Currency translation differences – – (21801) 1143 (36054) 1105 (55607)

As at June 30 2025 – – 1670320 7627613 1396233 251185 10945351

Impairment

As at January 1 2025 – 2435 15403 85834 – 6 103678

Charge for the period – – 8859 184 – – 9043

Disposals – – – (17445) – – (17445)

Currency translation differences – – (383) – – – (383)

As at June 30 2025 – 2435 23879 68573 – 6 94893

Net book value

As at June 30 2025 160681 9768054 4341157 1097992 3616372 119816 19104072Interim Report 2025 S.F. Holding Co. Ltd. 083

Notes to the Condensed Consolidated Financial Statements

083

14. Intangible Assets (Continued)

(a) Goodwill

The carrying amount of goodwill allocated to Cash-Generating Units (“CGU”) or the groups of CGU:

As at June 30 As at December 31

20252024

RMB’000 RMB’000

KLN CGUs 6001913 6138923

Fenghao Supply Chain CGUs 3096113 3184723

SXH China Logistics CGUs 369566 380138

SX Freight CGUs 149587 149587

KEX CGUs 62713 64508

Others 88162 86486

Total 9768054 10004365

Goodwill is allocated to the CGUs that are expected to benefit from business combination.Goodwill would be tested for impairment annually and when there is indication that they may be impaired. The recoverable amount of a CGU

is determined based on higher of its fair value less costs of disposal and value in-use calculations.Management did not identify any major adverse changes indicating any impairment in the carrying amounts of goodwill for all CGU at June

30 2025.084 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

15. Prepayments Other Receivables and Other Assets

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Non-current:

Amounts due from related parties (Note 28(d)) 44365 1181

Prepayments (Note (a)) 920081 576948

Deferred pilot recruitment costs 711037 740683

Finance lease receivables 29516 38224

Others 545720 520580

22507191877616

Less: Allowance for expected credit losses (22625) (22581)

22280941855035

Current:

Amounts due from related parties (Note 28(d)) 327135 306027

Value-added tax recoverable 3348852 3366151

Prepayments (Note (b)) 2721725 2827788

Deposits 1688948 1536726

Cash to collect on behalf of customers 724677 768814

Prepaid corporate income tax 464516 384920

Finance lease receivables 45240 88800

Loans to employees 1711 16047

Others 1801924 1154081

1112472810449354

Less: Allowance for expected credit losses (339422) (334811)

Total 10785306 10114543

(a) The balances of the Group mainly comprise prepaid construction equipment balances at June 30 2025 and December 31 2024.(b) The balances of the Group mainly comprise prepaid freight and transportation costs at June 30 2025 and December 31 2024.Interim Report 2025 S.F. Holding Co. Ltd. 085

Notes to the Condensed Consolidated Financial Statements

085

16. Investments in Associates and Joint Ventures

Movement of investments in associates and joint ventures for the six months ended June 30 2025 is analyzed as follows:

Investments in Investments in

associates joint ventures

RMB’000 RMB’000

At the beginning of the period 3610850 2592792

Additions and disposals net (Note (a)) 1142825 (5676)

Share of profit/(loss) net 17733 (54030)

Share of other comprehensive income (6392) 2

Share of other equity movement 742 –

Dividend declared during the year (140965) –

Exchange differences (64901) (620)

Less: Impairment loss provided for the period – –

At the end of the period 4559892 2532468

(a) During the reporting period the Southern SF Warehouse Logistics Closed-end Infrastructure Securities Investment Fund (Shenzhen

Stock Exchange ticker: Southern SF Logistics REIT Security Code: 180305) was officially approved and commenced trading on the

Shenzhen Stock Exchange on April 21 2025. The fund-raising scale of Southern SF Logistics REIT was RMB3290000000. As the

original sponsor of the South SF Logistics REIT the Group’s subsidiaries Shenzhen Jiafeng Industrial Park Management Co. Ltd.(“Jiafeng Industrial Park Management”) and Shenzhen Fengtai E-Commerce Industrial Park Asset Management Co. Ltd. (“ShenzhenFengtai E-Commerce Industrial Park Asset Management”) participated in the strategic placement of the South SF Logistics REIT shares

by paying a total of RMB1118600000 resulting in an interest of 34% in the South SF Logistics REIT as of the end of the reporting

period (Note 26(b)).(b) There is no associate and joint venture that is individually significant to the Group.086 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

17. Financial Assets at FVPL and FVOCI

(a) Financial Assets at FVPL

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Non-current:

– Industry fund investments 304554 331815

– Others 200455 145601

Total 505009 477416

Current:

– Structured deposits 26928678 11015904

– Fund investment and others 98242 230252

Total 27026920 11246156

(b) Financial Assets at FVOCI

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Non-current:

– Listed equity investments at fair value 1100088 1033218

– Unlisted equity investments at fair value 7052225 7198776

Total 8152313 8231994

Current:

– Notes held for sale 165187 170913

Total 165187 170913Interim Report 2025 S.F. Holding Co. Ltd. 087

Notes to the Condensed Consolidated Financial Statements

087

18. Trade and Note Receivables

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Trade and note receivables

– related parties (Note 28(d)) 437232 540956

– third parties 29904373 28554708

3034160529095664

Less: Allowance for expected credit losses (918375) (1114031)

Total 29423230 27981633

(a) The Group has various credit policies for different business operations depending on the requirements of the markets and businesses.The ageing analysis of the trade and note receivables based on invoice date is as follows:

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Within 1 year (including 1 year) 29509518 28295989

Between 1 and 2 years (including 2 years) 410218 335669

Over 2 years 421869 464006

Total 30341605 29095664

There is no concentration of credit risk with respect to trade and note receivables as the Group has a large number of customers.(b) The Group applies the simplified approach to provide for expected credit losses prescribed by IFRS 9. At June 30 2025 trade

receivables of approximately RMB918375000 (At December 31 2024: RMB1114031000) were impaired and provided for.(c) The provision and reversal of provision for impairment of receivables have been included in impairment losses on financial assets and

contract assets in the condensed consolidated statement of profit or loss. Amounts charged to the allowance account are written off

when there is no expectation of recovery.(d) Certain trade and note receivables with a net carrying amount of approximately RMB50259000 at June 30 2025 (December 31

2024: Nil) were pledged as securities for bank loan facilities and bank overdrafts granted to the Group (Note 20).

(e) The carrying amount at the reporting date approximated the fair value of each class of receivables mentioned above.088 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

19. Restricted Cash and Cash and Cash Equivalents

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Restricted cash

Statutory reserve deposits with the PBOC for banking operations 801136 1240261

Pledged bank deposits 90866 67314

Others 48733 46728

Total 940735 1354303

Cash and cash equivalents

Cash on hand and cash at banks (excluding PBOC) 20733495 32632563

Surplus reserve deposits with the PBOC 9166 13492

Total 20742661 32646055Interim Report 2025 S.F. Holding Co. Ltd. 089

Notes to the Condensed Consolidated Financial Statements

089

20. Borrowings

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Non-current:

Long-term bank borrowings (Note (a))

– secured (Note (a)(i)) 6596 8300

– unsecured (Note (a)(ii)) 5944974 6178086

Corporate bonds (Note (c)) 18340691 19941935

Loans from non-controlling interests and other parties 182894 190939

Total 24475155 26319260

Current portion of non-current:

Long-term bank borrowings (Note (a))

– secured (Note (a)(i)) 19060 30902

– unsecured (Note (a)(ii)) 1116954 1646813

Corporate bonds (Note (c)) 620144 627779

Loans from non-controlling interests and other parties – 21831

Short term:

Short-term bank borrowings (Note (b))

– secured (Note (b)(i)) 115040 117348

– unsecured (Note (b)(ii)) 12320504 15001186

Short-term debentures (Note (c)) 2507973 807787

Loans from non-controlling interests and other parties 358246 111476

Total 17057921 18365122090 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

20. Borrowings (Continued)

(a) Long-term bank borrowings

(i) Certain non-current assets had been pledged as securities for long-term bank borrowings at June 30 2025 and December

31 2024. Refer to Note 11(a) Note 12(a) Note 13(a) and Note 18(d).

(ii) The bank borrowings of approximately RMB6761118000 at June 30 2025 (At December 31 2024: RMB5546498000)

had been guaranteed by the subsidiaries within the Group.(iii) The range of interest rates of major non-current bank borrowings were 1.07% to 4.70% at June 30 2025 (At December 31

2024: 2.34% to 5.33%).

(b) Short-term bank borrowings

(i) Certain non-current assets had been pledged as securities for short-term bank borrowings at June 30 2025 and December

31 2024. Refer to Note 11(a) Note 12(a) Note 13(a) and Note 18(d).

(ii) Short-term bank borrowings of approximately RMB1038566000 at June 30 2025 (At December 31 2024: RMB753673000)

had been guaranteed by subsidiaries of the Company.(iii) The range of interest rates of major short-term bank borrowings were 0.83% to 8.70% at June 30 2025 (At December 31

2024: 2.27% to 6.77%).

(c) Corporate bonds and short-term debentures

(i) Bonds and debentures amounting to RMB16425000000 at June 30 2025 (At December 31 2024: RMB18039077000)

had been guaranteed by the Company.(ii) During the six months ended June 30 2025 the Group repurchased part of its US dollar bonds with the total face value of

the repurchased bonds amounting to RMB1322261000. The difference between the consideration paid and the carrying

amount of the bonds was RMB65199000 (six months ended June 30 2024: RMB55982000) and recognized as other

gains (Note 6).Interim Report 2025 S.F. Holding Co. Ltd. 091

Notes to the Condensed Consolidated Financial Statements

091

21. Trade and Note Payables

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Trade and note payables

– related parties (Note 28(d)) 360787 332322

– third parties 28716307 27063202

Total 29077094 27395524

An ageing analysis of the trade and note payables based on invoice date At June 30 2025 and December 31 2024 was as follows:

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Within 1 year (including 1 year) 28815308 27128233

Over 1 year 261786 267291

Total 29077094 27395524092 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

22. Other Payables and Accruals

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Non-current:

Salaries wages and benefits 67773 58725

Others 153674 142312

Total 221447 201037

Current:

Amounts due to related parties (Note 28(d)) 86394 120487

Salaries wages and benefits 4355236 6151172

Payable for purchase of property plant and equipment 2860725 3292799

Deposits 2772858 2566045

Dividend payable 2238799 187401

Payables of cash collected on delivery service 1519304 1423502

Other taxes payable 844477 847166

Consideration payable for business combinations 10531 13213

Others 2571914 2459546

Total 17260238 17061331Interim Report 2025 S.F. Holding Co. Ltd. 093

Notes to the Condensed Consolidated Financial Statements

093

23. Share Capital and Treasury Shares

Number of

fully paid

ordinary shares Share capital Treasury shares Total

RMB’000 RMB’000 RMB’000

As at January 1 2025 4986186983 4986187 (758081) 4228106

Exercise of share options (Note (a)) 6505034 6505 – 6505

Repurchase of shares (Note (b)) – – (100984) (100984)

As at June 30 2025 4992692017 4992692 (859065) 4133627

As at January 1 2024 4895202373 4895202 (2575532) 2319670

Repurchase of shares – – (1378503) (1378503)

Cancellation of shares (79291153) (79291) 3575545 3496254

As at June 30 2024 4815911220 4815911 (378490) 4437421

As of June 30 2025 the Company had a total of 4992692017 ordinary shares issued. The details of the Company’s equity changes for the

six months ended June 30 2025 and 2024 are as follows:

As at June 30 As at June 30

20252024

A Shares 4822692017 4815911220

H Shares 170000000 –

Total 4992692017 4815911220

(a) During the six months ended June 30 2025 part of the share options granted in 2022 were vested the participants who met the

performance requirements exercised the share options. Therefore a contribution of approximately RMB261498000 was received

by the Company from the participants treasury stock of approximately RMB6505000 and capital reserve of approximately

RMB254993000 were recognized.(b) For the six months ended June 30 2025 a total of 2499000 A Shares have been repurchased for future employee stock ownership

plan or share-based incentive and treasury stocks amounting to approximately RMB100984000 therefore were recognized.094 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

24. Reserves

Other General and

Capital comprehensive regulatory Special Statutory

reserve income reserve reserve reserve Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

As at January 1 2025 40924932 4529488 524376 – 2646138 48624934

Other comprehensive income – (120609) – – – (120609)

Transfer of loss on disposal of equity investments at fair

value through other comprehensive income to retained

earnings – (19113) – – – (19113)

Transactions with owners

Net proceeds from share option exercising 254993 – – – – 254993

Capital injection from non-controlling interests 802 – – – – 802

Profit appropriations to statutory reserve – – – – 3253 3253

Share-based payment 33635 – – – – 33635

Transaction with non-controlling interests and others (205554) – – – – (205554)

Safety reserve appropriation – – – 207453 – 207453

Safety reserve utilisation – – – (207453) – (207453)

Others (13619) – – – – (13619)

As at June 30 2025 40995189 4389766 524376 – 2649391 48558722Interim Report 2025 S.F. Holding Co. Ltd. 095

Notes to the Condensed Consolidated Financial Statements

095

24. Reserves (Continued)

Other General and

Capital comprehensive regulatory Special Statutory

reserve income reserve reserve reserve Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

As at January 1 2024 43164085 5532428 524376 – 2413786 51634675

Other comprehensive income – (1060319) – – – (1060319)

Transfer of gain on disposal of equity investments at fair

value through other comprehensive income to retained

earnings – 5060 – – – 5060

Transactions with owners

Capital contribution of non-controlling interests 127 – – – – 127

Cancellation of shares (3496254) – – – – (3496254)

Share-based payment 62186 – – – – 62186

Transaction with non-controlling interests and others (3760142) – – – – (3760142)

Safety reserve appropriation – – – 272081 – 272081

Safety reserve utilisation – – – (272081) – (272081)

As at June 30 2024 35970002 4477169 524376 – 2413786 43385333096 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

25. Notes to the Condensed Consolidated Statement of Cash Flows

(a) Reconciliation of Profit before Income Tax to Net Cash Generated from Operations:

Six months ended June 30

20252024

RMB’000 RMB’000

Profit before income tax for the period 7639728 6320057

Adjustments for:

Depreciation of right-of-use assets (Note 12(b)) 3337161 3428916

Depreciation and amortization (excluding right-of-use assets) (Note 7) 4860146 5360734

(Net reversal of impairment losses)/impairment losses on financial

assets and contract assets (117104) 159872

Impairment of inventories property plant and equipment and other

non-current assets (Note 6) 43644 1309

Equity settled share-based compensation expenses 43193 69940

Losses/(gains) on disposal of property plant and equipment right-of-use

assets and other non-current assets (Note 6) 55366 (39097)

Fair value changes in financial assets at FVPL (Note 6) (293339) (238687)

Gains on repurchase of corporate bonds (Note 6) (65199) (55982)

Gains on disposal of investments in subsidiaries (Note 26(b)) (777717) (91950)

Share of loss of associates and joint ventures net 36297 62580

Gains on disposal of investments in associates and joint ventures (Note 6) (11712) (45307)

Dividend income (Note 5) (1360) (426)

Amortization of deferred income (33044) (20416)

Finance costs (Note 8) 928361 1230918

Operating cash flow before working capital changes 15644421 16142461

Changes in working capital:

Increase in inventories 106309 (119277)

(Increase)/decrease in trade receivables prepayment contract assets and other

receivable (2057725) 896436

Increase/(decrease) in trade payables contract liabilities and other payables 1416102 (1705611)

Cash generated from operations 15109107 15214009Interim Report 2025 S.F. Holding Co. Ltd. 097

Notes to the Condensed Consolidated Financial Statements

097

26. Disposal of Subsidiaries

Transactions of disposal of subsidiaries for the six months ended June 30 2025 are analyzed as follows:

(a) Net Cash Received from Disposal of Subsidiaries

Six months ended June 30

20252024

RMB’000 RMB’000

Cash consideration 2084410 273345

Add: Cash and cash equivalents received from disposal of subsidiaries in the prior years 10000 –

Less: Cash and cash equivalents held by the subsidiaries at the dates of disposal (188303) (1749)

Less: Cash and cash equivalents received from disposal of subsidiaries in the future

years – (118000)

Total 1906107 153596

(b) Gains on Disposal of Investments in Subsidiaries

Six months ended

June 30

2025

RMB’000

Total disposal consideration 2084410

Carrying amount of net assets sold (1199144)

The impact of sales and leaseback (107549)

Gains on disposal of investments in subsidiaries 777717

During the reporting period the Group’s subsidiaries Jiafeng Industrial Park Management and Shenzhen Fengtai E-Commerce Industrial

Park Asset Management disposed of their entire equity interests in Shenzhen SF Aviation Industrial Real Estate Management Co. Ltd. Hefei

Fengtai E-Commerce Industrial Park Management Co. Ltd. and Wuhan Fengtai E-Commerce Industrial Park Management Co. Ltd. to the

South SF Logistics REIT. Upon completion of the transaction the Group lost control over the aforementioned three entities in Shenzhen Hefei

and Wuhan and ceased to consolidate them in its condensed consolidated financial statements.The consideration for equity transfer of the aforementioned transaction amounted to approximately RMB2083358000. After the completion

of the aforementioned transaction the investment gains of approximately RMB777266000 were recognized.098 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

27. Partly Owned Subsidiaries with Material Non-Controlling Interests

Set out below is summarized financial information for KLN and its subsidiaries since its acquisition by the Group which has non-controlling

interests that are material to the Group. The amounts disclosed for KLN and its subsidiaries are before inter-company eliminations.As at June 30 As at December 31

20252024

Current assets 20254802 21013025

Non-current assets 24053807 24476527

Total assets 44308609 45489552

Current liabilities 13952887 14653958

Non-current liabilities 9667589 9650482

Total liabilities 23620476 24304440

Six months ended June 30

20252024

RMB’000 RMB’000

Revenue 25316546 23988254

Net profit 639240 103294

Attributable to owners of the Company 283307 25482

Net cash generated from operating activities 1707819 1157855

(i) Except for KLN and its subsidiaries no other subsidiaries had non-controlling interests that are material to the Group for the six months

ended June 30 2025 and 2024.Interim Report 2025 S.F. Holding Co. Ltd. 099

Notes to the Condensed Consolidated Financial Statements

099

28. Related Party Transactions

(a) Parent Entities

Ownership interest

As at As at

June 30 December 31

Name Type Place of incorporation 2025 2024

Shenzhen Mingde Holding Development Investment Shenzhen 53.32% 53.39%

Co. Ltd. (“Mingde Holding”)

The Company’s ultimate holding company is Mingde Holding and the ultimate controlling person is Mr. Wang Wei.(b) Names and Relationships with Related Parties

Related parties are those parties that have the ability to control jointly control or exercise significant influence over the other party in holding

power over the investee; exposure or rights to variable returns from its involvement with the investee; and the ability to use its power over the

investee to affect the amount of the investor’s returns. Parties are also considered to be related if they are subject to common control or joint

control. Related parties maybe individuals or other entities.The directors of the Company are of the view that the following parties/companies were related parties that had transactions with the Group

during the six months ended June 30 2025 and 2024 and/or balances with the Group as of June 30 2025 and December 31 2024.Name of related parties Relationship with the Group

Shenzhen Hive Box Technology Co. Ltd. and its subsidiaries Entities controlled by the ultimate controlling person of the Company

Shenzhen Fengxiang Information Technology Co. Ltd. and its Entities controlled by the ultimate controlling person of the Company

subsidiaries

Hangzhou Fengtai E-Commerce Industrial Park Management Ltd. Entities controlled by the ultimate controlling person of the Company

and its subsidiaries

Guangdong Fengxing Zhitu Technology Co. Ltd. Entities controlled by the ultimate controlling person of the Company

and its subsidiaries

Shenzhen Weitai Enterprise Development Co. Ltd. Entities controlled by the ultimate controlling person of the Company

and its subsidiaries

Shenzhen Zhongwang Finance and Tax Supply Chain Co. Ltd. Associates of the Group

Sichuan Wulianyida Technology Co. Ltd. and its subsidiaries Associates of the Group

SF Real Estate Investment Trust and its subsidiaries Associates of the Group

Shenzhen Fenglian Technology Co. Ltd. Associates of the Group

Zhejiang Galaxis Technology Group Co. Ltd. and its subsidiaries Associates of the Group

GIAO HANG TIET KIEM JOINT STOCK COMPANY Associates of the Group

KENGIC Intelligent Technology Co. Ltd and its subsidiaries Associates of the Group

Dazhangfang Network Technology Co. Ltd. and its subsidiaries Associates of the Group

KINGS (HK) INTERNATIONAL LIMITED and its subsidiaries Associates of the Group100 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

28. Related Party Transactions (Continued)

(b) Names and Relationships with Related Parties (Continued)

Name of related parties Relationship with the Group

Shenzhen Fustar Smart Technology Co. Ltd. Associates of the Group

Yihai SF (Shanghai) Supply Chain Technology Co. Ltd. Associates of the Group

Hubei Shunke Aviation Aircraft Maintenance Co. Ltd. Associates of the Group

State Grid E-Commerce Yunfeng Logistics Technology (Tianjin) Associates of the Group prior to January 2025

Co. Ltd.South SF Logistics REIT Associates of the Group

Beijing Wulian Shuntong Technology Co. Ltd. and its subsidiaries A joint venture of the Group

CR-SF International Express Co. Ltd. A joint venture of the Group

Hubei International Logistics Airport Co. Ltd. A joint venture of the Group

Chinese Security Culture Co. Ltd. A joint venture of the Group

Fengsu Yitong (Suzhou) Technology Co. Ltd. A joint venture of the Group

Shenzhen Yizhan Renewal Service Technology Co. Ltd. A joint venture of the Group

and its subsidiaries

Shenzhen Shenghai Information Service Co. Ltd. A joint venture of the Group

Smarcle (Zhuhai) Limited. A joint venture of the Group

Ezhou CCCC SF Airport Industrial Park Investment and A joint venture of the Group

Development Co. Ltd.Global Connect Holding Limited A joint venture of the Group

(c) Transactions with Related Parties

The following significant transactions were carried out between the Group and its related parties for the six months ended June 30 2025 and

2024. In the opinion of the directors of the Company the related party transactions were carried out in the normal course of business and at

terms negotiated between the Group and the respective related parties.Six months ended June 30

20252024

RMB’000 RMB’000

Sales of goods and services:

Controlling shareholder 282 255

Entities controlled by the ultimate controlling person of the Company 806235 756114

Associates of controlling shareholder – 7157

Joint ventures of the Group 13668 14030

Associates of the Group 18192 50706

Total 838377 828262Interim Report 2025 S.F. Holding Co. Ltd. 101

Notes to the Condensed Consolidated Financial Statements

101

28. Related Party Transactions (Continued)

(c) Transactions with Related Parties (Continued)

Six months ended June 30

20252024

RMB’000 RMB’000

Purchases of goods and services:

Joint ventures of the Group 582638 537250

Entities controlled by the ultimate controlling person of the Company 393935 385191

Associates of the Group 261582 343809

Associates of controlling shareholder – 190

Controlling shareholder – 7

Total 1238155 1266447

Acquisition of equity:

Joint ventures of the Group – 559289

Total – 559289

Disposal of equity:

Associates of the Group 2083358 –

Total 2083358 –

Depreciation and interest expenses borne by the Group as the lessee:

Associates of the Group 167665 116707

Entities controlled by the ultimate controlling person of the Company 3781 6026

Total 171446 122733

Additions of right-of-use assets:

Associates of the Group 311283 265

Entities controlled by the ultimate controlling person of the Company 838 2058

Total 312121 2323

Other transactions:

Associates of the Group 42311 977

Entities controlled by the ultimate controlling person of the Company 3185 1545

Controlling shareholder 343 341

Joint ventures of the Group 305 408

Associates of controlling shareholder – 1391

46144 4662102 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

28. Related Party Transactions (Continued)

(d) Balances with Related Parties

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Amounts due from related parties:

Controlling shareholder 122 365

Entities controlled by the ultimate controlling person of the Company 598227 662119

Joint ventures of the Group 6538 5717

Associates of the Group 212041 188480

Total 816928 856681

Amounts due to related parties:

Controlling shareholder 131 321

Entities controlled by the ultimate controlling person of the Company 131976 113399

Joint ventures of the Group 197293 193787

Associates of the Group 153364 170522

Total 482764 478029

Lease Liabilities:

Entities controlled by the ultimate controlling person of the Company 30505 86838

Associates of the Group 617789 360194

Total 648294 447032Interim Report 2025 S.F. Holding Co. Ltd. 103

Notes to the Condensed Consolidated Financial Statements

103

28. Related Party Transactions (Continued)

(e) Guarantee to Related Parties

(i) Guarantee provided

As at June 30 2025

Guaranteed entities: Guaranteed amount Guaranteed period Whether the guarantee has been fulfilled

RMB’000

Joint ventures of the Group 782000 September 29 2021 to April 29 2055 No

As at December 31 2024

Guaranteed entities: Guaranteed amount Guaranteed period Whether the guarantee has been fulfilled

RMB’000

Joint ventures of the Group 782000 September 29 2021 to April 29 2055 No

(ii) Contracted not yet provided

As at June 30

20252024

RMB’000 RMB’000

Joint ventures of the Group 2384180 2384180

(f) Key management compensation

Six months ended June 30

20252024

RMB’000 RMB’000

Key management compensation 22579 21359104 S.F. Holding Co. Ltd. Interim Report 2025

Notes to the Condensed Consolidated Financial Statements

29. Commitments

(a) Capital Commitments

As at June 30 As at December 31

20252024

RMB’000 RMB’000

Contracted but not provided for purchase of property plant and equipment 3738668 1515674

Investment to be paid 76244 121043

Total 3814912 1636717

30. Subsequent Event

(a) Private Placement of H Shares

On July 4 2025 the Company successfully issued and allotted 70000000 new H Shares at a placement price of HKD42.15 per share. The

total proceeds from the placement amounted to approximately HKD2950500000.(b) Issuance of Convertible Bonds

On July 10 2025 the Company’s subsidiary SF Holding Investment 2023 Limited issued zero-coupon convertible bonds guaranteed by the

Company. The bonds which mature in 2026 are convertible into the Company’s H Shares at an initial conversion price of HKD48.47 per

share. The issuance raised total proceeds of HKD2950000000. The convertible bonds were listed and commenced trading on the Hong

Kong Stock Exchange on July 11 2025.(c) Cancellation of Repurchased A Shares

Pursuant to resolutions approved by the Company’s Board of Directors the Company completed the cancellation of 23270358 repurchased

A Shares on August 7 2025.Interim Report 2025 S.F. Holding Co. Ltd. 105

Definitions

105

“active consumer(s)” the number of unique consumer accounts that purchase a particular service at least once during

the prescribed period

“active merchants” the number of unique merchant accounts that purchase a particular service at least once during the

prescribed period“Announcement No. 1 [2023] Announcement of the Ministry of Finance and the State Taxation Administration on the Clarification of　of the Ministry of Finance and Value-Added Tax Reduction and Exemption for Small-Scale Value-Added Tax Taxpayers and Other　the State Taxation Administration” Policies (Announcement No. 1 [2023] of the Ministry of Finance and the State Taxation Administration)

“A Share(s)” ordinary shares issued by the Company with a nominal value of RMB1.00 each which are listed on

the Shenzhen Stock Exchange and traded in RMB

“AEO” Authorized Economic Operator qualified enterprises certified by the World Customs Organization

and provided with facilitation and preferential policies for customs clearance

“AFRC” Accounting and Financial Reporting Council of Hong Kong

“AGV” automated guided vehicle a transport vehicle with handling function that can travel automatically

along a prescribed path

“Articles of Association” the articles of association of the Company adopted on August 17 2023 with effect upon Listing (as

amended from time to time)

“associate(s)” has the meaning ascribed thereto under the Listing Rules of SEHK

“Audit Committee” the audit committee of the Board

“BI” Business Intelligence

“Board” or “Board of Directors” the board of Directors of the Company

“Board of Supervisors” the board of Supervisors of the Company

“B2B” business to business

“B2C” business to customer

“Business Day” a day on which banks in Hong Kong are generally open for normal business to the public and which

is not a Saturday Sunday or public holiday in Hong Kong

“CBD” Central Business District

“China” or “the PRC” the People’s Republic of China except where the content or context requires otherwise“China Federation of China Federation of Logistics & Purchasing　Logistics & Purchasing”

“CG Code” the Corporate Governance Code as set out in the Appendix C1 to the Listing Rules of SEHK

“Companies Ordinance” the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) as amended supplemented or

otherwise modified from time to time

“Company” or “SF” S.F. Holding Co. Ltd. (順豐控股股份有限公司) formerly registered under the name Maanshan Dingtai

Rare Earth & New Materials Co. Ltd.* (馬鞍山鼎泰稀土新材料股份有限公司) a joint stock company

with limited liability established in the PRC on May 22 2003 the A Shares of which have been listed

on the Shenzhen Stock Exchange (stock code: 002352.SZ) and the H Shares of which have been

listed on the Hong Kong Stock Exchange (stock code: 6936.HK)

“connected person(s)” has the meaning ascribed thereto under the Listing Rules of SEHK

“connected transaction(s)” has the meaning ascribed thereto under the Listing Rules of SEHK

“Controlling Shareholder(s)” has the meaning ascribed thereto under the Listing Rules of SEHK106 S.F. Holding Co. Ltd. Interim Report 2025

Definitions

“CSRC” China Securities Regulatory Commission

“Director(s)” the director(s) of the Company

“dividend payout ratio” calculated as the dividends paid in respect of a year/reporting period divided by the profit attributable

to owners of the Company for the same period expressed as a percentage

“express logistics business” includes the Company’s time-definite express economy express freight delivery cold chain and

pharmaceuticals logistics and intra-city on-demand delivery business

“Ezhou cargo hub” the air cargo hub located in Ezhou Hubei Province which mainly comprises of Ezhou Huahu

International Airport and the logistics complex

“Frost & Sullivan Report” the industry report prepared by Frost & Sullivan (Beijing) Inc. Shanghai Branch Co. on the global

logistics market

“GDP” gross domestic product

“General Mandate” the general mandate granted to the Board to allot and issue H Shares by the Shareholders pursuant

to a special resolution passed at the 2024 Annual General Meeting

“Group” the Company and its subsidiaries

“H Share(s)” overseas listed foreign ordinary share(s) in the share capital of the Company with a nominal value of

RMB1.00 each which are listed on the Hong Kong Stock Exchange and traded in HKD

“H Share Registrar” Tricor Investor Services Limited

“HKFRS(s)” Hong Kong Financial Reporting Standards amendments and interpretations issued by the Hong

Kong Institute of Certified Public Accountants

“Hong Kong” or “HK” the Hong Kong Special Administrative Region of the PRC

“Hong Kong dollars” or “HKD” Hong Kong dollars and cents respectively the lawful currency of Hong Kong

“Hong Kong Stock Exchange” or The Stock Exchange of Hong Kong Limited a wholly owned subsidiary of Hong Kong Exchanges

“SEHK” and Clearing Limited

“IASB” International Accounting Standards Board

“IFRS” the IFRS Accounting Standards which as collective term includes all applicable individual International

Financial Reporting Standards International Accounting Standards and Interpretations issued by

the IASB

“IVD” abbreviation for in vitro diagnostics products and services for obtaining clinical diagnostic information

through testing on human samples

“KA” the type of customers that are defined as key accounts in the Company’s customer management

system

“KEX” KEX Express (Thailand) Public Company Limited a company listed on the Stock Exchange of Thailand

(stock code: KEX.BK) and a holding subsidiary of the Company

“KLN” KLN Logistics Group Limited (formerly known as Kerry Logistics Network Limited) a company

listed on the Main Board of the Hong Kong Stock Exchange (stock code: 0636.HK) and a holding

subsidiary of the Company

“Listing Rules of SEHK” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (as

amended supplemented or otherwise modified from time to time)“logistics and freight forwarding includes the Company’s time-definite express economy express freight delivery cold chain and　services” pharmaceuticals logistics intra-city on-demand delivery and supply chain and international business

“lower-tier markets” generally refers to the market in third- or lower-tier cities counties towns and rural areas or the

market where customers place greater emphasis on cost-effectivenessInterim Report 2025 S.F. Holding Co. Ltd. 107

Definitions

107

“LTL” less-than-truckload the transportation of goods that do not require a full truckload

“Mingde Holding” Shenzhen Mingde Holding Development Co. Ltd.* (深圳明德控股發展有限公司) a limited liability

company established under the laws of the PRC on November 5 1997 one of the Controlling

Shareholders

“Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix C3

to the Listing Rules of SEHK

“NAFR” National Administration of Financial Regulation of the PRC (中華人民共和國國家金融監督管理總局)

(which was established on the basis of the China Banking and Insurance Regulatory Commission

(中國銀行保險監督管理委員會))

“Nomination Committee” the nomination committee of the Board

“PRC Company Law” the Company Law of the People’s Republic of China (中華人民共和國公司法) as amended

supplemented or otherwise modified from time to time

“PRC GAAP” Generally accepted accounting principles of the PRC

“Prospectus” the prospectus of the Company dated November 19 2024

“PTL” Partial Truckload the transportation of goods that are relatively large in volume but still not sufficient

for a full truckload requiring consolidated shipping

“Reporting Period” from January 1 2025 to June 30 2025

“reverse logistics” logistics services that manage the movement of goods from consumers back to manufacturers or

sellers generally for purposes including returns recycling or repairs

“Risk Management Committee” the risk management committee of the Board

“RPA” Robotic Process Automation“Remuneration and the remuneration and appraisal committee of the Board　Appraisal Committee”

“RMB” Renminbi the lawful currency of the PRC

“R&D” research and development

“Securities and Futures Commission” the Securities and Futures Commission of Hong Kong

or “SFC”

“standardized portfolio service” standardized integrated logistics service solution created by combining a wide range of products and

technological capabilities to meet the needs of customers in specific scenarios

“SF Express” S.F. Express Co. Ltd.* (順豐速運有限公司) an indirect wholly-owned subsidiary of the Company

“SF Express (Group)” SF Express (Group) Limited* (順豐速運(集團)有限公司) the predecessor of Mingde Holding

“SF Holding (Group)” SF Holding (Group) Co. Limited* (順豐控股(集團)股份有限公司) the predecessor of SF Taisen

“SF Holding (HK)” SF Holding (HK) Limited (順豐控股(香港)有限公司) an indirect wholly-owned subsidiary of the

Company formerly known as SF Holding Limited (順豐控股有限公司)

“SF Intra-city” or “Intra-city Industrial” Hangzhou SF Intra-city Industrial Co. Ltd. (杭州順豐同城實業股份有限公司) a company listed on

the Main Board of the Hong Kong Stock Exchange (stock code: 9699.HK) an indirect non-wholly

owned subsidiary of the Company

“SF REIT” SF Real Estate Investment Trust listed on the Main Board of the Hong Kong Stock Exchange (stock

code: 2191.HK) is an associate of the Company108 S.F. Holding Co. Ltd. Interim Report 2025

Definitions

“SF Taisen” Shenzhen S.F. Taisen Holding (Group) Co. Ltd.* (深圳順豐泰森控股(集團)有限公司) previously known

as SF Holding (Group) Co. Limited* (順豐控股(集團)股份有限公司) a direct wholly-owned subsidiary

of the Company

“SF Technology” SF Technology Co. Ltd.* (順豐科技有限公司) an indirect wholly-owned subsidiary of the Company

“SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) as amended

supplemented or otherwise modified from time to time

“Share(s)” ordinary share(s) in the capital of the Company with a nominal value of RMB1.00 each including

both A Shares and H Shares

“Shareholder(s)” holder(s) of the Share(s)

“Shenzhen Stock Exchange” Shenzhen Stock Exchange

“Shenzhen Weishun” Shenzhen Weishun Enterprise Management Co. Ltd.*(深圳市瑋順企業管理有限公司) a limited

liability company established under the laws of the PRC on January 31 2023 one of the Controlling

Shareholders and owned as to 100% by Mingde Holding

“SKU” stock keeping unit a unique code that identifies a commodity which represents the smallest traceable

unit in inventory management and is used to illustrate the identification and tracking of inventory

“SOP” Standard Operating Procedure

“Southern SF Logistics REIT” the Southern SF Warehouse Logistics Closed-end Infrastructure Securities Investment Fund listed

on the Shenzhen Stock Exchange (180305) is an associate of the Company

“Strategy Committee” the strategy committee of the Board

“subsidiary(ies)” has the meaning ascribed thereto under the Listing Rules of SEHK

“substantial shareholder(s)” has the meaning ascribed thereto under the Listing Rules of SEHK

“Supervisor(s)” member(s) of the Board of Supervisors“Supply chain and includes the Company’s international express international cargo and freight forwarding business　international business” and supply chain business

“SXH China Logistics” the business entities acquired by the Company from HAVI China Holding LLC that engage in cold

chain business in mainland China Hong Kong and Macau

“TEU” twenty-foot equivalent unit a standard unit of measurement of the volume of a container with a length

of 20 feet height of eight feet six inches and width of eight feet

“US dollar(s)” or “USD” United States dollars the lawful currency of the United States

“WMS” warehouse management system a comprehensive warehouse management system that can achieve

functions such as batch management material correspondence inventory counting quality inspection

management virtual warehouse management and real-time inventory management

“WES” warehouse execution system an automated warehousing business scheduling and task management

system

“2022 Stock Option Incentive Plan” the stock option incentive plan approved and adopted by the Company on April 28 2022 selected

participants including Directors and members of senior management team key management

members and key staff

“2024 Annual General Meeting” the annual general meeting of the Company held on June 13 2025

“3C electronics” computer communication and consumer electronics

“%” per cent

* For identification purpose only