SF Intra-city is Honoured to be Included in MSCI China Small Cap Index

HONG KONG,May 15,2023 -- The results of the May 2023 Index Review on the MSCI China Small Cap Index have been released. Hangzhou SF Intra-city Industrial Co.,Ltd. (Stock Code: 9699.HK),the largest third-party on-demand delivery service provider in China,will be added to the MSCI China Small Cap Index,effective after the market closes on 31 May 2023. It demonstrates that the international capital market has recognized the Group's development prospects and industry influence. This will further enhance its popularity in the global investment community.

The MSCI China Small Cap Index is an equity index compiled by MSCI Inc.,a leading provider of critical decision support tools and services for the global investment community,for measuring the performance of the small-cap segment of the China market. The index,widely recognized by the international financial community and institutional investors,serves as a benchmark for global institutional investors to optimize their investment portfolios. SF Intra-city was included in the MSCI China Small Cap Index according to the results of the May 2023 Index Review. This will further enhance its popularity in the global investment community and generate a positive impact on the Group's transaction liquidity as well as valuation improvement.

Since its listing on the Main Board of the Hong Kong Stock Exchange in December 2021,SF Intra-city has been committed to optimizing its business structure and profitability,thereby achieving excellent performance. In 2022,the Group demonstrated robust business resilience by steadily expanding its business while continuing to improve its financial performance significantly. Last year,the Group's revenue increased significantly by 25.6% to approximately RMB10,265.2 million; gross profit recorded more than a threefold increase from approximately RMB94.8 million in 2021 to approximately RMB413.4 million; gross profit margin substantially increased from 1.2% in 2021 to 4.0%. The scale of intra-city delivery services for merchants maintained healthy growth,achieving a revenue of approximately RMB 4,649.7 million for the reporting period,increased 19.8% YoY. Revenue from intra-city delivery to consumers was approximately RMB 1,898.7 million for the reporting period,increased by 57.3% YoY. Last-mile delivery service quickly rebounded under the receding impact of pandemic. It recorded a revenue increase of 19.9% to approximately RMB 3,680.4 million.

To cooperate with digital transformation and adopt new technologies such as big data and artificial intelligence,the Group is committed to optimizing the network system,realizing efficient real-time order scheduling as well as logistics systems,and developing intelligent distribution networks. Moreover,the Group launched the "SF lntra-city Delivery Cloud" (豐配雲) SaaS real-time logistics system to provide one-stop intra-city logistics solutions for delivery service providers and brands with self-delivery business. In order to further improve the Group's delivery capability and deployment of smart delivery network,it successfully launched the on-demand drone delivery service,providing a new service experience for its customers and the merchants.