We currently offer online education services and technology research &
development services. Our online education services currently comprises Online
Education Cloud Services and Online Training Services.

Online Education Cloud Service (“B2B2C”)

We provide online education platforms to institutions, such as universities and
training institutions, and online course development service companies. Our
teachers are well regarded and recommended by our clients, which include
universities and academic institutions. Through our product development team, we
interview and enlist teachers who we use to record teaching sessions. In return,
we provide fixed compensation to teachers. We have developed three separate
types of B2B2C platforms: a self-study examination platform, a continuing
education platform and a non-diploma training platform (which allows students to
enroll in courses for college credit). These platforms are available both online
and via mobile applications that we design for each of our clients. Currently,
we are primarily focused on providing clients with B2B2C services relating to
self-study examinations, which are a set of standard national examinations
necessary to obtain college degrees in China. We have offered such services
since September 2009. We entered into the adult education field and commenced
offering continuing education platforms in late 2016. We offer over 700 courses
to students that use this platform. We commenced offering our non-diploma
training platforms in March 2017. We currently provide services in ten provinces
in China and believe that we are the leading service provider in this market.

Online Training Service (“B2C”)

We provide online training and examination preparation services directly to
students for a fee. We have provided this service since 2000, however, due to
limited marketing efforts, the revenue generated from this service has been
limited. Beginning in early 2017, we began to increase our marketing efforts for
our B2C service and our revenue from this service increased 50% in the first
half of 2017 compared to the first half of 2016. With the increased demand for
continuing education, we plan to expand our B2C service. In connection with our
B2C service, we provide an online cloud education platform targeting end users,
which is available both online and via the mobile applications we design for
each program. We plan to license this platform to other offline education and
training institutions for them to offer online services and to manage their
online courses and online users. Students that use this service are primarily
college students and students preparing for the self-study examination. In the
last two years, we have provided on average approximately 350,000 courses to
students per year.

Technology Research & Development Services

Another major aspect of our operations is dedicated to developing and
maintaining online education platforms and online courses for our clients,
comprising universities, government agencies and private clients such as
publishers and education service companies. We also provide consulting,
maintenance and updating services relating to online education programs we have
developed for our clients. We have provided these services to our clients since
our wholly-owned subsidiary, Beijing Huaxia Dadi Distance Learning Services Co.,
Ltd. (“Beijing Distance Learning”) commenced operations in 1999. Our largest
clients for our technology services business are Shanghai World Publishing Co.
and the State Intellectual Property Bureau Training Center. Pursuant to our
agreements with Shanghai World Publishing Co., we develop and update platforms
for its Electric Backpack program, an online interactive teaching program for
elementary and middle school students in China. We have been providing online
course development services to the State Intellectual Property Bureau Training
Center since 2002. Our services to the center include training course recording,
editing and posting as well as platform maintenance and updating for a fixed fee
agreed upon by both parties.
—

Our principal executive offices in Beijing are located at Room 505, Building
No.40, No.1 Disheng North Street, Economic and Technological Development Zone,
Beijing, China 100176. Our telephone number at this address is +86 10 57925024.
We also have offices in Hunan, Shanghai, Jiangsu, Hubei and Guizhou. Our
principal website is www.edu-edu.com.

The post Prospectus/F1 Form of WAH FU EDUCATION GROUP LTD (WAFU) IPO first appeared on CRI Report.

Express delivery is the door-to-door logistics with additional post functions. It refers to the fast delivery of goods to customers through railway, road or air transport.

According to CRI, in China, both the efficiency and function of express delivery are better than that of postal services, but correspondingly, the charge is higher, too. There are three types of geographical scope of express delivery: intra-city delivery, nation-wide inter-city delivery and international delivery.

In 2016, online retail sales in China was CNY 5,155.6 billion, increasing by 26.2% YOY. Retail sales of physical goods was CNY 4,194.4 billion, increasing by 25.6% YOY and accounting for 12.6% of total retail sales of consumer goods. Among these goods, food, clothing and daily goods increased by 28.5%, 18.1% and 28.8%, respectively.

According to CRI, surging market demand brought about by the booming e-commerce in China stimulated the fast growth of express delivery. The volume of business of express delivery in China increased from 1.2 billion parcels in 2007 to 31.3 billion in 2016. In 2016, the revenue of China’s express delivery industry exceeded CNY 400 billion. Both the Chinese government and some local governments have issued policies to support the development of the express delivery industry.

However, the development of the industry is also faced with risks and challenges. For example, the overall cost has been pushed up by increasing property rental and human capital costs. Some policies are also unfavorable to the express delivery industry. For example, Provisions on the Administration of the Running of Transport Vehicles with Out-of-gauge Goods on the Road, which is known for its historical strictness, was implemented on September 21, 2016. It stipulated that the maximum of combined weight of the vehicle and goods shall be reduced from 55 tons to 49 tons. Total height of vehicle and goods combined must not exceed 4m from ground; total width of vehicle and goods combined must not exceed 2.55m; total length of vehicle and goods must not exceed 18.1m. A fine of CNY 500 would be imposed on every 1 ton in excess and the upper limit of fines is CNY 30,000. It is believed that these provisions would increase long-distance road transport costs by 20% to 30%.

As a result, part of road transport, especially commodities transport, would be transferred to railway transport, increasing the cost of express delivery.

China’s express delivery industry is characterized by extensive development mode, severe homogeneous competition, declining profitability and huge infrastructure investment. As a result, many private express delivery companies which find it hard to borrow money from banks turned to going public to raise funds so as to improve their competitive advantages. The year 2016 saw the most dynamic capital activities in China’s express delivery industry. A number of express delivery leaders were listed. For example, ZTO was listed on NYSE; YTO, S.F. Express, STO and Yunda Express were listed on A-share market through back-door listings utilizing Dalian Dayang Trands, Dingtai Rare Earth & New Materials, IDC Fluid Control and Xinhai Electric, respectively; Best Express and Deppon are also planning to go public.

According to CRI, the cost to run physical stores has been increasing with surging labor costs and rentals. As a result, the strength of online retailing has been enhanced. It is expected that China’s e-commerce industry will keep growing fast from 2017 to 2021. In addition, new e-commerce modes, such as cross-border shopping, will also promote the development of China’s express delivery industry. Government policies in the coming years will also support the development of the express delivery industry. For example, in early 2017, Premier Li Keqiang reiterated that online shopping is the “new economy” which directly drives sales of physical factories.

As a representation of the “new economy”, express delivery is driving both consumption and production. State Post Bureau issued Thirteenth Five-Year Plan for Express Delivery Industry (2016-2020) in which six development targets were raised for China’s express delivery industry from 2016 to 2020, one of which is to build flagship express delivery enterprises and to form three to four leaders by 2020. It is estimated that China’s express delivery industry will keep growing at over 20% per year. With more mergers and restructuring going on, companies with ill management will be forced to close down.

Readers can obtain the following information or more through this report:

– Economic Environment of Express Delivery Industry in China

– Policies in Express Delivery Industry in China

– Analysis of Supply and Demand in Express Delivery Industry in China, 2012-2016

– Analysis of Market Competition in Express Delivery Industry in China

– Analysis of Major Companies in Express Delivery Industry in China

– Analysis of Costs in Express Delivery Industry in China

– Price Trend of Express Delivery Services in China

– Driving Forces and Opportunities in Express Delivery Industry in China, 2017-2021

– Unfavorable Factors in Express Delivery Industry in China, 2017-2021

– Forecast on Supply and Demand in Express Delivery Industry in China, 2017-2021

Table of Contents

1 Concepts in Express Delivery Industry

1.1 Definition and Classification of Express Delivery

1.1.1 Definition of Express Delivery

1.1.2 Classification of Express Delivery

1.2 Parameters and Assumptions

1.2.1 Assumption Base

1.2.2 Data Sources

1.3 About CRI

2 Analysis of Express Delivery Industry in China, 2012-2016

2.1 Development Environment of Express Delivery Industry in China

2.1.1 Economic Environment

2.1.2 Policy Environment of Express Delivery Industry in China

2.1.3 Social Environment

2.2 Analysis of Supply in Express Delivery Industry in China, 2012-2016

2.2.1 Express Delivery Enterprise Profiles

2.2.2 Supply Capacity of Express Delivery

2.3 Analysis of Demand in Express Delivery Market in China, 2012-2016

2.3.1 Major Consumer Groups in Express Delivery Market

2.3.2 Market Size of Express Delivery in China, 2012-2016

3 Competition Status of Express Delivery Industry in China, 2012-2016

3.1 Barriers to Entry in Express Delivery Industry in China

3.1. Barriers of Economies of Scale

3.1.2 Barriers of Necessary Capital

3.1.3 Barriers of Product Differentiation

3.1.4 Barriers of Human Capital

3.2 Competition Structure of China Express Delivery Industry

3.2.1 Bargaining Power of Suppliers in Express Delivery

3.2.2 Bargaining Power of Consumers in Express Delivery

3.2.3 Internal Competition in Express Delivery Industry

3.2.4 Substitutes for Express Delivery

3. 2.5 Threats from New Entrants

4 Analysis of Major Express Delivery Companies in China, 2013-2016

4.1 S.F. Holding Co., Ltd.

4.2.1  Profile of S.F. Holding Co., Ltd.

4.2.2 Operation Status of S.F. Express

4.2 STO Express Co., Ltd.

4.2.1  Profile of STO Express Co., Ltd.

4.2.2 Operation Status of STO Express

4.3 YTO Express Group Co., Ltd.

4.3.1 Profile of YTO Express

4.3.2 Operating Revenue of YTO Express

4.4 Yunda Holding Co., Ltd.

4.4.1 Profile of Yunda Express

4.4.2 Operation Status of Yunda Express

4.5 ZTO Express (Cayman) Inc.

4.5.1 Profile of ZTO Express

4.5.2 Operation Status of ZTO Express

4.6 Sinotrans Air Transportation Development Co., Ltd.

4.6.1 Profile of Sinotrans Air Transportation Development Co., Ltd.

4.6.2 Operation Status of Sinotrans Air Transportation Development Co., Ltd.

4.7 China Postal Express & Logistics Co., Ltd.

4.7.1 Profile of China Postal Express & Logistics Co., Ltd.

4.7.2 Operation Status of China Postal Express & Logistics Co., Ltd.

4.8 Other Express Delivery Companies

5 Analysis of Costs and Prices of China Express Delivery Industry, 2014-2017

5.1 Analysis of Costs in China Express Delivery Industry

5.2 Analysis of Service Prices of China Express Delivery Industry

5.2.1 Analysis of Express Delivery Prices in China, 2013-2016

5.2.2 Price Trend of Express Delivery in China, 2017-2021

6 Forecast on Development of Express Delivery Industry in China, 2017-2021

6.1 Factors Influencing Development of China Express Delivery Industry

6.1.1 Major Driving Forces and Market Opportunities in China Express Delivery Industry, 2017-2021

6.1.2 Threats and Challenges in Future Express Delivery Industry in China

6.2 Forecast on Express Delivery Industry in China, 2017-2021

6.2.1 Forecast on Supply in Express Delivery Industry in China, 2017-2021

6.2.2 Forecast on Product Structure of Express Delivery in China

6.3 Forecast on Demand in China Express Delivery Industry, 2017-2021

6.3.1 Overall Demand

6.3.2 Forecast on Segment Demand for Express Delivery in China

Selected Charts

Chart Disposable Income of Urban Residents in China, 2011-2016

Chart Online Retail Sales in China, 2012-2016

Chart Number of Online Shoppers in China, 2012-2016

Chart Policies Relevant to Express Delivery Industry Issued by Chinese Government, 2012-2017

Chart Number of Parcels in China, 2011-2016

Chart Revenues of Express Delivery in China, 2011-2016

Chart Process of Major Chinese Express Delivery Companies Going Public by 2017

Chart Operating Revenue of Major Express Delivery Companies in China, 2016

Chart Operating Revenue of S.F. Holding Co., Ltd., 2014-2016

Chart Operation Status of STO Express, 2014-2016

Chart Operating Revenue of YTO Express, 2014-2016

Chart Operation Status of ZTO Express, 2014-2016

Chart Operating Revenue of Sinotrans Air Transportation Development Co., Ltd., 2011-2016

Chart Price Trend of Oil in China, 2014-2017

Chart Cost Trend of Human Capital in China, 2014-2017

Chart Scale of E-commerce Transaction, 2013-2016

Chart Forecast on Business Volume in Express Delivery Industry in China, 2017-2021

Chart Forecast on Operating Revenue of China Express Delivery, 2017-2021

The post Research Report on China Express Delivery Industry, 2017-2021 first appeared on CRI Report.