Profits Double, Core Business Recovers, New Growth Engines Emerge: Yanwen Logistics' 'New Answer Sheet' for Its Second IPO Attempt

[Ebrun Original] Recently, Yanwen Logistics Co., Ltd. officially submitted its listing application to the main board of the Hong Kong Stock Exchange, with Shenwan Hongyuan (HK) Limited as the sole sponsor. This established cross-border logistics company, founded 28 years ago, is making its second attempt to enter the capital markets after its initial bid for the Shenzhen Stock Exchange main board in 2021.

A review of its prospectus reveals that Yanwen's development journey has been closely synchronized with the growth history of China's cross-border e-commerce.

The company's predecessor was established in Beijing in 1998. Around 2009, when cross-border e-commerce was still in its infancy, Yanwen was among the first pioneers in cross-border logistics, starting with international air freight services and gradually weaving a logistics network connecting the globe.

Today, after weathering fierce industry transformations and a six-year IPO marathon, this seasoned 'cross-border veteran' remains firmly entrenched in the market's top tier.

According to Frost & Sullivan data, based on 2025 revenue from cross-border e-commerce express services, Yanwen ranks second among China's third-party B2C cross-border e-commerce logistics service providers, with a market share of 1.8%. Based on parcel volume shipped to the US during the same period, it also ranks second, with a 1.4% market share.

After three years, restarting its listing process, what kind of 're-examination answer sheet' has Yanwen, the industry's runner-up in cross-border logistics, submitted? In an industry adjustment period marked by tariff policy fluctuations and dramatic changes in major client cooperation models, has it found its new course?

1. Core Business Restructuring: Traditional Mainstay Gradually Stabilizes Amidst the Storm

In the field of cross-border e-commerce logistics, Yanwen has long been regarded as a representative player in 'direct shipping' and 'postal parcels.'

Its cross-border e-commerce express service has always been the company's fundamental pillar, consistently contributing over 80% of its revenue for many years.

The latest prospectus data indicates that the cross-border express service—Yanwen's primary business 'engine'—is revving up again after pressure:

In 2025, revenue from this business reached RMB 5.737 billion, a year-on-year increase of 22.7%; total parcel volume rose from 107 million pieces in 2024 to 120 million pieces; and the number of clients expanded from 32,700 to 35,900.

The comprehensive recovery of these three core metrics suggests that Yanwen's traditional mainstay has emerged from a brief downturn in 2024 caused by changes in major client cooperation models, regaining growth momentum. The speed of its recovery also aligns with the business's inherent high resilience—according to industry insiders close to the company, over the long term, Yanwen's cross-border direct shipping business has consistently maintained an annual growth rate of around 15%.

More notably, during this 'major recovery,' its growth model has also undergone a structural shift.

In 2025, the company strategically allocated resources towards dedicated line parcel services. Data shows that dedicated line parcel volume increased from 93.8 million pieces in 2024 to 116 million pieces in 2025. Simultaneously, as dedicated line services command higher revenue per piece, this directly boosted overall profitability—average revenue per piece rose from RMB 43.9 to RMB 47.7.

This can be described as a qualitative improvement in growth, not merely a quantitative accumulation.

Furthermore, the stabilization and upgrading of its core business have withstood the extreme stress test of sudden external environmental changes.

In 2025, US tariff policies on China continued to intensify, even directly eliminating the tax-exempt status for small cross-border parcels. The market was widely concerned that this policy would deal a crippling blow to Yanwen, which started with 'US-bound small parcels.'

However, the prospectus provides a contrasting answer: In 2025, Yanwen's revenue from parcels shipped to North America still increased from RMB 2.584 billion to RMB 3.397 billion—North America remains the company's best-performing main battlefield. Leveraging years of accumulated resources and precise strategic transformation, it has developed a powerful siphoning effect in the turbulent market environment, effectively hedging against external uncertainties.

2. Second Growth Curve Emerges: Rapid Scaling of US 'Last-Mile' Business

If cross-border e-commerce express is Yanwen's fundamental business, then its strategically launched US domestic last-mile delivery service in March 2024 is the most eye-catching second growth curve in the prospectus.

The speed of growth presented by the data is remarkable. In 2025, parcel volume for this business surged by 380.97% year-on-year, with revenue skyrocketing 322.50% in sync. Its contribution to the company's annual revenue share had already reached 5.8%. Considering this business started from scratch less than two years ago, its explosive growth potential is not to be underestimated.

The core support behind this rapid growth is an efficient operational model of 'self-operated core sorting centers + crowdsourced last-mile delivery.'

For the core sorting process, Yanwen insists on self-operation, supplemented by automated sorting equipment and standardized operational procedures to ensure operational control and service consistency. For the last-mile delivery segment, it relies on a platform-based model to aggregate crowdsourced delivery capacity from the public, using a self-developed mobile application for order allocation, route tracking, and delivery confirmation.

This architecture allows Yanwen to maintain high scalability while controlling costs, and also upgrades the company from a single 'cross-border transporter' to a comprehensive player serving two types of clients: cross-border direct shipping customers and US domestic e-commerce customers.

Simultaneously, its delivery network is rapidly expanding.

The prospectus reveals that Yanwen has established 10 regional sorting centers in the US, with service coverage spanning 41 states, reaching approximately 70% of the US population.

In terms of volume, daily average parcel volume soared from about 28,000 pieces in 2024 to 105,000 pieces in 2025. During the peak 'Black Friday' season at year-end, the daily average processing volume jumped from 72,000 pieces to 219,000 pieces, with a single-day peak exceeding 377,000 pieces. Since the business began, Yanwen has cumulatively processed approximately 46.8 million parcels domestically in the US.

It should be noted that this domestic network is not growing in isolation but has formed a two-way synergy with the company's traditional cross-border business: an increasing number of cross-border express parcels are now completing their last-mile delivery through Yanwen's self-operated US network. This reduces dependence on external suppliers and enhances the quality of end-to-end fulfillment.

3. Foundation and Boundaries: Infrastructure Network Intensifies, from 'Deep Cultivation in the US' to 'Global Replication'

Breakthroughs at the business level are inseparable from a solid foundation of infrastructure. Looking at Yanwen's global layout, it has woven a fulfillment network that is both extensive and deep.

As of the end of last year, Yanwen managed a total of 56 warehouses, including 35 collection warehouses and sorting centers in China, and 21 overseas warehouses, with a total floor area exceeding 51,000 square meters.

Its domestic collection network covers approximately 106 transportation routes, of which 22 are core strategic routes, each with a monthly average freight volume exceeding 50 tons. Its global air freight network consists of over 420 air routes, reaching more than 200 countries and regions.

This scale makes it one of China's B2C cross-border e-commerce logistics service providers with the widest service coverage.

In terms of regional market expansion, Yanwen adheres to a clear expansion principle of 'prioritizing high-demand, low-risk markets.'

The North American market remains the pillar of the company's revenue, contributing nearly 60%. The prospectus states that the US will remain the primary focus of the company's near-term overseas expansion, where it will continue to densify its local delivery network, improve service quality, and consolidate its competitive advantages.

Meanwhile, Europe is becoming Yanwen's second growth engine—in 2025, revenue from parcels shipped to Europe increased from RMB 1.506 billion to RMB 1.755 billion, a year-on-year growth of approximately 16.6%.

In the future, Yanwen also plans to gradually replicate the US model in mature markets like Europe and actively evaluate expansion opportunities in emerging markets like Latin America—a logistics map starting from China, deeply cultivated in the US, reaching Europe, and radiating globally is beginning to take shape.

4. Shifting to 'High-Quality Growth': Breaking the Cycle of Fierce Competition Through Self-Renewal

Looking solely at revenue scale, Yanwen's financial curve over the past three years paints a distinct 'V-shaped reversal': after climbing to a high of RMB 9.483 billion in 2023, revenue fell to RMB 5.827 billion in 2024 and rebounded to RMB 6.687 billion in 2025.

However, looking beyond the surface and focusing on actual profitability, the core indicators that better reflect the 'quality of growth'—gross profit, net profit, and cash flow—tell a completely different, continuously upward story.

From 2023 to 2025, the company's gross profit steadily increased from RMB 344 million to RMB 462 million, achieving three consecutive years of growth; cash flow climbed from RMB 558 million to RMB 935 million; and net profit more than doubled, rising from RMB 58.1 million to RMB 106 million, with a three-year compound annual growth rate of 35.3%.

More noteworthy is the improvement in marginal efficiency—in 2025, its cost of sales growth rate was 14.2%, lower than the revenue growth rate of 14.76% for the same period. This indicates an improvement in the company's marginal efficiency, with the business evolving in a healthier direction.

In short, while revenue scale has not yet returned to its historical peak, Yanwen's profitability quality has already undergone a substantial leap forward.

The core driver of this qualitative change is a strategic-level act of 'decluttering.'

Previously, Yanwen was deeply tied to large cross-border e-commerce platforms, trading thin profit margins for massive parcel volumes. 'Major client dependency' was once the most significant risk exposure in its revenue structure: in 2023, a single largest client contributed 51.9% of the company's revenue.

But the latest prospectus shows this chapter has been completely turned: the revenue share of the top five clients plummeted from 64.0% to 18.0%, with the largest client's share compressed to 8.4%. Concurrently, the total number of clients increased from 32,300 to 35,900, meaning the client base is now broader and more stable.

This is not a passive 'exit' but more akin to an active 'screening.'

According to sources close to the company, management's thinking is very clear—'revenue without quality is not needed.'

Between 2023 and 2024, on one hand, some large platforms adjusted their own logistics procurement strategies, shifting from a centralized single-supplier model to a segmented transportation approach. On the other hand, Yanwen also proactively scaled back cooperation with low-margin major clients, reallocating resources towards profitable, high-quality cross-border sellers and direct brand clients willing to pay a service premium.

Of course, platform-type clients undoubtedly remain an important, indispensable pillar in Yanwen's revenue landscape. But their role and position are now fundamentally different:

Currently, platforms are more like 'allies' for Yanwen at the ecosystem and customer acquisition level, rather than a 'single point of failure' that could jeopardize the entire operation. Through mutual exploration, Yanwen may have found a 'comfort zone' of cooperation that is most balanced and healthy for the development of both parties.

This strategic shift has left an equally profound mark on the balance sheet—money is coming back faster.

At the end of 2025, the company's trade receivables balance was significantly reduced by nearly 65% compared to 2023, to RMB 433 million. The days sales outstanding (DSO) was compressed from 53 days in 2024 to 27 days. The aging structure of receivables also became healthier—99.8% of receivables were concentrated within 180 days, and the total amount of long-term receivables over one year sharply decreased by 96.46% compared to 2023.

In stark contrast, the company's days payable outstanding (DPO) lengthened from 32 days in 2023 to 64 days in 2024. Although it fell back to 49 days in 2025, it remained significantly higher than the 2023 level.

Clients paying faster, while payments to suppliers are slower—the emergence of this 'scissors gap' is a typical footnote indicating Yanwen's enhanced bargaining power in supply chain negotiations.

5. Crafting a New Narrative: Moving Towards Logistics Intelligence

In capital markets, logistics companies are often categorized within an analytical framework of 'asset-heavy, labor-intensive.' However, with this IPO attempt, Yanwen is trying to tell a new narrative.

'In fact, Yanwen itself is entirely based on electronics to complete the entire cross-border logistics process. Doing cross-border logistics is about managing information.' Founder Zhou Wenxing stated this in an Ebrun interview back in 2016.

This assertion laid the data-driven genetic foundation for Yanwen, which continues to profoundly influence the company's strategic direction to this day.

As of the end of 2025, it had an R&D team of 111 people, accounting for 7.1% of the total workforce. It has cumulatively obtained 6 registered patents, 28 registered copyrights, and independently developed 29 logistics management systems, comprehensively covering core business processes such as order fulfillment, transportation scheduling, and delivery management.

These technologies are not just concepts on paper but permeate every specific aspect of the business.

The intelligent order fulfillment system, as the front-end entry point for the cross-border chain, supports full lifecycle order management. Intelligent scheduling and route optimization algorithms, through a 'customer-scheduler-driver' collaborative model, enable dynamic route planning and real-time visual management. The address correction module leverages intelligent parsing capabilities to improve first-attempt delivery success rates. The end-to-end visual tracking system integrates logistics node data from multiple carriers, in multiple languages and formats, completing automatic standardization processing.

Judging from the plans disclosed in the prospectus, Yanwen's technology narrative continues to unfold.

The company has already planned to introduce automated equipment and embodied AI robots in domestic and international sorting and delivery processes, aiming to fully evolve from 'informatization' to 'intelligence' and gradually build an automated operational system.

For a veteran logistics provider with a 28-year history, this shift is not only about efficiency but may also hold the potential for a reshaping of its valuation logic.

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