Over the years since the founding of Tianxia Logistics, its territory has expanded to a very large extent. From Hainan to the south to the northeast, to the east to the islands of the East China Sea, to Xinlian and Xiroz, there have been footprints of Tianxia Logistics. In terms of site density, it is second only to the postal system.

However, the rapid expansion of Tianxia Logistics has also been burdened with a heavy debt burden. Because logistics in many regions is not so urgent, but because of the need for expansion, the company still sets up some in those regions.

In this way, the site does not have enough orders and does not have enough profits, but the cost still needs to be spent, which often leads to losses in the site.

Moreover, it is not just a site that loses money, but a large-scale site loss, which makes Tianxia Logistics lose more than one billion yuan each year, which is entirely supported by Xia Tian’s own efforts.

After Tianxia Logistics went public, Xia Tian could take advantage of the listing opportunity to get back all his previous efforts. Moreover, Tianxia Logistics will no longer just burn its money in the future, but the money of all shareholders.

According to Xia Tian, ​​China's logistics industry ushered in a golden period of development after the rise of online shopping. Before that, although the logistics industry had business, most of them transported commodities and served large, medium and small merchants. Although each business is profitable, the total business volume is a minority after all.

In comparison, after the rise of online shopping, the whole people shop online, and this way, the order volume has increased greatly. Even at a community express delivery point, it is a pediatric department that collects thousands of express delivery a day.

Although this type of order makes little money, it makes a lot of money by gathering sand and gathering together. After gathering together, it makes much more money than buying commodities.

Therefore, after the rise of online shopping, several domestic express delivery companies ushered in a leap forward. For example, Shun was successfully listed in Hong Kong due to its outstanding performance and obtained a valuation of 320 billion Hong Kong dollars.

However, the era of online shopping has not yet arrived. According to Xia Tian, ​​it is estimated that it will take at least ten years to go online shopping for the people, which is to wait for another ten years, that is, 2008 years later.

First, people need a process of accepting online shopping. After all, online shopping cannot "see" things, so it is normal for consumers to worry about being cheated and have doubts. To dispel their doubts, it is not something that can be done in one day or two, one year or two.

Second, the popularization of the Internet also requires a process. In fact, around 2008, computers were not popularized in China. In rural areas, many families would usually not install broadband even if they would need computers to dowry when they got married.

Because many people have to go out to work and will not stay in the countryside at all, it is meaningless to install broadband. Moreover, the cost of broadband of thousands of yuan a year is also a great burden for many families.

In cities, many working people have to go online and can only go to Internet cafes, and they usually play games and chat with QQ. Online shopping is neither unfamiliar nor trustworthy for them.

It was not until the popularization of smartphones that online shopping was no longer limited to Internet cafes. Moreover, as housing prices rose, the prices of goods in physical stores became more and more expensive, and the difference between the prices of online goods became larger and larger, online shopping was truly popular.

In fact, Taobao only entered a golden period of development after 2008. Before that, Taobao's annual transaction volume was only a few hundred billion yuan, which was not as good as the current transaction volume of Double Eleven for one hour.

In this way, Tianxia Logistics will have at least ten years to achieve large-scale profits. Before that, it still needs to continue to burn money.

Calculated based on the annual loss of RMB 1.5 billion, it will take at least another RMB 15 billion in ten years, which is not a small amount.

What's more, Xia Tian is preparing to continue to strengthen the world's logistics network, so that it not only becomes a logistics company that runs across the country, but also actively advances overseas. In this way, the funding gap will be even larger, so going public to raise funds is the best choice.

...

If you want to go public and raise funds, then Tianxia Logistics' performance will naturally be better.

The first thing is to increase freight costs to increase the income of Tianxia Logistics. It cannot continue to lose money, but to make profits so that investors can be attracted.

Otherwise, a company will always lose money. Even if the company was founded in Xiatian, no investor dares to invest.

It is actually quite simple to make a profit in Tianxia Logistics. Because Tianxia Logistics’ biggest customer is Tianxia Group, which is responsible for transporting Tianxia Group’s goods to all parts of the country. As long as Tianxia Group gives more freight, Tianxia Logistics will easily achieve profits.

The second is to reduce expenses, slow down the pace of expansion, and speed up after going public. At present, there are no logistics companies that can be compared with Tianxia Logistics, except China Post.

Logistics companies such as Shun and Tongda Group, which were famous in their previous lives, are still just starting out, and their territory is limited to areas with relatively developed economic and trade such as the Yangtze River Delta and the Pearl River Delta. Provinces and regions such as North China, Northeast, Northwest, and Southwest have basically not yet entered.

Moreover, their strength, their equipment, their management, and their employees are also very different from Tianxia Logistics. Even if Tianxia Logistics no longer develops, they will have no chance to catch up with them for at least five years.

So it is reasonable to temporarily delay expansion and make the books look better. After the company goes public, it will accelerate its development.

...

With a two-pronged approach, Tianxia Logistics' performance has indeed improved a lot.

Xiatian then announced that Tianxia Logistics will be listed soon. In order to save time and energy, Tianxia Logistics will adopt the method of backdoor listing.

Xia Tian took advantage of the Hong Kong stock market crash and acquired listed companies in a large number of ways. Now he has accumulated shells of dozens of listed companies. Although he has sold some to mainland companies before, allowing them to successfully go public through backdoors and successfully raise funds in the Hong Kong stock market, he still has dozens of shells in his hands.

Now, he handed over one of Huanghai Industrial to Tianxia Logistics to go public through a backdoor listing. Huanghai Industrial's main business was textiles at that time, but with the hollowing out of Hong Kong's manufacturing industry, the textile industry, which has always been very prosperous, has gradually declined.

Huanghai Industrial's stock price has been sluggish, and over the years, the stock price has fallen to the bottom, and there are not even people who buy or sell, and it has become a dead stock.
Chapter completed!