Deutsche Post DHL Group and SF Holding conclude landmark supply chain deal

  • RMB 5.5 billion
    (~ EUR 700 million) transaction saw DPDHL Group and SF Holding
    enter a
    10-year strategic partnership to grow supply chain operations in China
  • Yin Zou named CEO
    of the co-branded business to accelerate expansion of
    customer base


SHANGHAI, CHINA Media OutReach - February 18, 2019 - Deutsche
Post DHL Group ("DPDHL Group"), the world's leading mail and logistics company,
has concluded the landmark deal to transfer its supply chain operations in
Mainland China, Hong Kong and Macau, herein after referred to as "China" to SF
Holding ("SF"), a leading premium logistics service provider in the country.
The transaction involves the supply chain business, and has no bearing on DPDHL
Group's business activities in international express, freight transport and
e-commerce logistics solutions in China.


As part of this transaction, DPDHL Group received
RMB 5.5 billion (~ EUR 700 million), and will continue to receive revenue-based
partnership fees for 10 years while DPDHL Group provides the co-branded
business with trademark license, customer referral, employee training, best
practice sharing and other areas of support. The co-branded business -- SF DHL
Supply Chain China -- was announced at the deal closing, and Yin Zou (former
CEO, Greater China of DHL Supply Chain) was appointed CEO of the organization,
and along with his existing management team, will continue leading the
business. Headquartered in Shanghai, SF DHL Supply Chain China will harness
DPDHL Group's best-in-class supply chain services, management expertise,
transportation and warehousing technology, combined with SF's extensive
domestic infrastructure, distribution network and broad base of local
customers, to drive its growth trajectory.


supply chain alliance with SF is a strategic milestone for DPDHL Group. With
our joint capabilities we will create a unique platform to meet the need for a
high quality end-to-end supply chain provider in China. SF's local market
expertise combined with DPDHL Group's global operations standards and network
support provide a solid foundation for us to continue exploring further
opportunities in China in the coming years. China is on course for sustainable
[1], and SF DHL Supply Chain China is well-placed to serve the increasing
demands for world-class supply chain services. The agreement, therefore, is the
cornerstone for DPDHL Group to gain unprecedented access to China's immense
domestic market," said Frank Appel, CEO Deutsche Post DHL Group.


"SF's vision is to become a trustworthy
logistics-based business partner with comprehensive solutions for our
customers, and our partnership with DPDHL, the leading logistics company in the
world, helps us move solidly ahead with this vision. We are expanding our
domestic footprint through SF DHL Supply Chain China to cater to our customers
across a multitude of industries. This deal with DPDHL Group, a world-class
organization, also helps us to better serve multi-national clients," said Dick
Wong, Chairman, SF Holding.


SF DHL Supply Chain China will have access to
DPDHL Group's global expertise, network, operations standards and innovations,
across industries from technology, healthcare, retail and automotive to
e-commerce. Leveraging SF's market position in China, SF DHL Supply Chain China
is setting its sights on expanding the service portfolio to SF's customers
while winning new customers with its enhanced product and service offerings.


Added Yin Zou, CEO, SF DHL Supply Chain China,
"This landmark deal gives SF DHL Supply Chain China unparalleled advantage to
transform the supply chain industry in China. My team and I are looking forward
to amalgamating the best of what DPDHL Group and SF stand for, and converting
these into tangible value for existing and new customers. The strong commitment
from DPDHL Group and SF has led to the swift and smooth completion of the
transaction, and it is full steam ahead for us to deliver top quality turnkey
supply chain solutions to enterprises in China."


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SF DHL Supply Chain China is a leading supply chain provider in Mainland
China, Hong Kong and Macau. It amalgamates world-class supply chain expertise
from Deutsche Post DHL Group and extensive domestic infrastructure from SF
Holding to positively disrupt the supply chain industry in Mainland China, Hong
Kong and Macau. Headquartered in Shanghai, SF DHL Supply Chain China employs
more than 5,000 people to deliver top quality turnkey supply chain solutions to
enterprises in Mainland China, Hong Kong and Macau.


Deutsche Post DHL Group is the world's leading mail and logistics
company. The Group connects people and markets and is an enabler of global
trade. It aspires to be the first choice for customers, employees and investors
worldwide. The Group contributes to the world through responsible business
practices, corporate citizenship and environmental activities. By the year
2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.


Post DHL Group is home to two strong brands: Deutsche Post is Europe's leading
postal service provider. DHL offers a comprehensive range of international
express, freight transport, and supply chain management services, as well as
e-commerce logistics solutions. Deutsche Post DHL Group employs approximately
520,000 people in over 220 countries and territories worldwide. The Group
generated revenues of more than 60 billion Euros in 2017.


Die Post für Deutschland. The
logistics company for the world.


is a leading integrated logistics service provider in
China. SF provides its customers with integrated logistics services from
transportation to warehousing management, from sales forecasting and data
analytics to settlement and cash management, as well as supply chain management


SF Holding is also a smart
logistics operator with network scale advantages. SF Holding has a vast
logistics network both at home and abroad, including an "aviation
network" consisting of all-cargo aircraft, commercial flight, and drones;
a "ground network" consisting of service points, transit and
distribution service points, land transportation networks, customer hotline
networks, and last mile networks; and an "information network"
consisting of various AI automation devices, AI recognition technology for
voice and machine graphics, smart decision-making, SF Maps, big data
ecosystems, digital warehouses, and smart packaging. The three networks are
integrated into one "aviation + ground + information" network. This directly
operated network has domestic and overseas coverage and is a comprehensive
logistics network system and the most unique resources in the industry

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