On September 29, China Express (NYSE: ZTO, 28, closing price: 31.97 US dollars; 02057, HK) was officially listed on the Hong Kong stock exchange. On the first day of listing, China Express opened 11.93% higher, with the highest trading price reaching HK $245.2. China Express closed at HK $238, up 9.17%, with a market value of HK $2020 billion, according to wind data. Zhongtong Express has become the first express company to be listed on the NYSE and HKEx at the same time, and it is also the largest enterprise with the largest market value in the logistics sector of Hong Kong stock market. < / P > < p > since its establishment at No. 290, Pushan Road, Zhabei District, Shanghai, in 2002, from the first day of business volume of 57 tickets, to the “double 11” period in 2019, the daily order volume of the whole network exceeded 200 million pieces, and became the first express enterprise with annual business volume exceeding 10 billion pieces in the world. Zhongtong express is an epitome of the development of private express in China. < p > < p > since 2016, Shentong express (002468, SZ; yesterday’s closing price was 15.22 yuan), Yuantong Express (600233, SH; yesterday’s closing price was 13.96 yuan), Zhongtong express, Yunda shares (002120, SZ; yesterday’s closing price was 18.74 yuan) and SF Holdings (002352, SZ; yesterday’s closing price was 79.97 yuan) all landed on the capital market and opened“ In the past four years, China’s express industry has experienced many ups and downs. < / P > < p > as a late start express company in the “Tongda system”, how can Zhongtong express catch up and keep its business volume No.1 in the market for four consecutive years? In this regard, the reporter of “daily economic news” reviewed the 18 year growth history of China express, and systematically sorted out the business digital competition and capital market value changes of major domestic private express companies in the past four years, trying to solve the problem and deconstruct the capital Bureau of China Express Market: who is the real “express king”? At 9:30 a.m. on September 29, China Express was officially listed on the main board of the Hong Kong stock exchange. The Hong Kong listing ceremony was held in the lecture hall on the third floor of Zhongtong Express Group’s new No.1 building, Qingpu District, Shanghai. “Daily economic news” reporters on the scene noted that all the guests who came to the stage “cloud beating gongs” came from representatives of Zhongtong outlets and couriers, as well as employees and customer representatives of all posts. However, Lai Meisong, founder, chairman and CEO of Zhongtong express, took a low-key seat and did not appear on the stage. In his subsequent speech, Lai Meisong said that in 2016 (China Express) went abroad to be listed on the New York Stock Exchange, which opened a window for the world to understand China Express. Today, he returned home with gratitude and listed in Hong Kong, full of confidence in China’s economy and China Express. The stock code of ZTE in the Hong Kong stock exchange is 02057, 20 represents 2020, and 57 is the business volume on the first day of its establishment. This is the collision of two new starting points, which opens a new journey for China Telecom. < p > < p > behind the active capital market, according to the business data of the 2020 semi annual report, as of the second quarter of this year, the four companies of “three links and one delivery” accounted for “half of China’s express delivery market share” (63.06%). Among them, the market share of Zhongtong express exceeded 20% for the first time, reaching 21.5%, Yunda stock market accounted for 16.61%, Yuantong express market accounted for 14.57%, and Shentong express market accounted for 10.38%. We can see that the scale advantage of China Express is becoming more and more obvious, and the market gap with the second and third place is further widened. < / P > < p > it is worth mentioning that during the “double 11” period in 2019, China Express has become the first express enterprise in the world with an annual package volume of more than 10 billion pieces. In 2020, due to the special economic environment changed by the epidemic situation, the increment of China’s express delivery industry is more likely to be unprecedented. On September 1, China Express ushered in the 10th billion express delivery in 2020. Compared with 10 billion pieces in 2019, it took only 8 months and 1 day this year to set a new record again. According to Lai Meisong’s judgment, the order volume of Zhongtong alone in 2020 will exceed 15 billion, that is to say, the increment of Zhongtong this year is likely to be equivalent to the express volume of the United States. < / P > < p > obviously, the operation of tens of billions of packages carried by “three links and one delivery” every year has created a miracle of express delivery and e-commerce in China, which is a world miracle. The private express delivery in China started in 1993, especially the “Tongda system”, which created the miracle of China’s express delivery and even the world’s express, all came from the grassroots. < / P > < p > < p > < p > the founders of the four companies are not only from the same county, but also from the same Township — Gewu Township, Tonglu County, Zhejiang Province. Their hometown Tonglu County has also been awarded the title of “hometown of Chinese express” by China Express Association. In the middle of September, just before returning to Hong Kong for listing, Lai Meisong recalled the history of entrepreneurship at the customer open day activities, and said frankly that (China) express is a history of farmers’ Entrepreneurship and innovation. < / P > < p > Zhongtong express was born in 2002. Before Zhongtong, Shentong (founded in 1993), Yunda (founded in 1999) and Yuantong (founded in 2000) have started. Before deciding to set up Zhongtong, Lai Meisong also went to Wenzhou to inspect Shentong’s network. Even the inspiration of Zhongtong’s name came from Shentong: “the word” Shen “stands for Shanghai, and the word” Zhong “stands for China.” < / P > < p > why can a late start company achieve the largest scale in the industry in a short time? On the customer open day in mid September, Mr. Lai answered that question. Mr Lai divides the past 18 years into several stages. < p > < p > from 2002 to 2009, Zhongtong started its business in the first few years. Lai Meisong defined it as the “following” stage, which was also the first stage of Zhongtong’s “survival”. 2009 is the watershed of express delivery industry. Before that, express delivery industry was in gray area. On October 1, 2009, the revised new postal law was officially promulgated and implemented, which confirmed the legal status and role of private express. From then on, the express delivery industry has ushered in the spring of development. Lai Meisong and his team predict that “rich people” will come to express delivery in the future, and investment capital will enter the express industry. “I told you that in the past, city people didn’t do express delivery, rich people didn’t do express delivery, and people who could basically find a job didn’t do express delivery. So express delivery is a history of farmers’ Entrepreneurship and innovation. ” Lai Meisong sighed. < / P > < p > smelling the historical market opportunity, Zhongtong began to implement the “joint-stock system reform”, which is different from the traditional express franchise system. In short, it is to merge the transfer centers of important node cities from multiple stakeholders into a common interest body. < p > < p > in 2010, Zhongtong express launched the “whole network integration” development strategy, and successfully completed the national network shareholding system reform in the industry, forming three unification: decision-making power, personnel power and financial power. < / P > < p > from 2010 to 2016, Zhongtong’s growth can be said to be the fastest in the industry. During this period, express “top position” experienced unprecedented fierce competition and changed owners several times. < / P > < p > in 2016, the prospectus of China Communications to the United States disclosed that in 2015, the business volume of China Express was 2.95 billion, accounting for 14.3% of China express market share, which was almost equal to that of Yuantong Express (14.7%), which was the first market share at that time. In this context, at the end of 2016, Zhongtong took the top position of China express, and has been continuing to this day. The absolute value of our business from 2016 to now is also the first. We have gone from 6% market share to 19.1% market share in 2019. ” Mr. Lai recalled. < / P > < p > it was also this year. On October 27, 2016, China express, with its rapid attack, sounded the market opening bell on the New York Stock Exchange, becoming the largest IPO of Chinese enterprises in the United States after Alibaba. < p > < p > in the past 18 years, he talked about the reasons why Zhongtong has been No.1 in the market for four consecutive years from following and catching up. Lai Meisong also mentioned the management concept of “fairness, efficiency and results” advocated by Zhongtong. This is really valuable for China’s “Tongda system” which used to be “scattered, chaotic and poor”. < / P > < p > different from other Tongda enterprises, Zhongtong proposed in 2018 that the organizational structure of franchise express is a new concept of “federalism”. According to the definition of “federalism” given by China Communications Corporation, federalism is a system fission within an organization. Member links synchronize with the establishment of an organization. It is a strong internal link. What links each other and the size of the organization are smooth and symbiotic, and are flat network distribution. When Lai Meisong talked about management, he also compared the two modes of “direct marketing” and “franchise” of Chinese express. In Lai Meisong’s view, no matter which mode, the express delivery process is the same: receiving, transferring, transporting and dispatching. “The network is to do their own things well, to send good delivery, to collect good customer service. What our center has to do is to do better than peers in terms of timeliness and routing optimization in the transshipment link. ” He said. < p > < p > Lai Meisong disclosed that in the past three or four years (from 2016 to now), Zhongtong outlets have clearly done three things: first, how to stimulate the endogenous power of the front-end couriers, so that they can earn more than their peers, the implementation path is to deal with the relationship between stock and increment; the second thing is that Zhongtong should do terminal construction, and Zhongtong has vigorously set up rookie post station and rabbit happiness in recent years Express supermarket, at present, has many end stores, greatly improving the collection efficiency of outlets, saving costs and improving efficiency. < / P > < p > “the third thing is that we think the capacity building of outlets is very important. From the past to this year (annual business volume) of Zhongtong will reach about 17 billion, which is inseparable from the capacity building of outlets.” Lai Meisong said that China Telecom has hard targets in terms of personnel, equipment and site construction. In order to deconstruct the golden rule of China Telecom, which has been the first in the market for four consecutive years, we can not only rely on the understanding of “price war”. Perhaps as Guangfa Securities summed up, the productivity chassis and management philosophy are the killer mace of Zhongtong becoming the “long-distance running champion”. < p > < p > < p > < p > < p > the reporter of daily economic news has noticed that although China Unicom has maintained its first position in domestic market share for four years since it was listed in the US stock market, its stock price performance has been poor. Returning to Hong Kong stock market is closer to operating market for enterprises in any case. Investors have a certain cognitive basis, which is conducive to improving investors’ confidence and overall liquidity. < / P > < p > according to many people in the industry, the deeper reason behind the secondary listing of China Unicom is that China Express capital bureau is more like a silent contest. In particular, the current Chinese express industry competition intensifies. It’s not just the market competition between “Tongda systems”. SF has cut into e-commerce products, Jingdong Logistics has opened up to the third party, and pinduoduo has introduced Southeast Asia Polar rabbit express. The price war brought about by the industry battle eventually evolved into the competition among the capital under the ecological blessing of giants. But the price war causes the profit of each listed company also to appear the differentiation, and has already transmitted to the cash flow. < / P > < p > from the cash level, the cash like balance of Zhongtong is still far higher than that of peers. In a research report released in September this year, GF Securities believes that the price strategy of express delivery industry is short-term, and the differentiation of operating net cash flow and cash like balance is a strong signal of leading breakthrough. Without considering the external financing, the operating net cash flow determines the expansion potential of express companies and the resilience to participate in the price war