OREANDA-NEWS. August 15, 2014. Sinopec to Cooperate with S.F. Express to Achieve Synergy of Nationwide Retail Stores and Logistics Network

Sinopec Sales Co., Ltd. (the "Sales Company"), a wholly-owned subsidiary of Sinopec, signed a business cooperation framework agreement with S.F. Express. Under the terms of the agreement, Sinopec EasyJoy Sales Co., a subsidiary of Sinopec Sales Co., Ltd, will connect its nationwide retail stores with S.F. Express' logistic network to achieve greater synergy.

According to the agreement, the two parties will mutually expand network coverage and enhance branch functions, while creating a brand new customer experience. Specifically, the agreement includes the test run of "Heike Stores" within existing EasyJoy Convenient Stores in Guangdong to provide O2O services including express delivery, self-pickup of online orders and order placing via QR code scanning. The two parties will discuss further cooperation expansion in other regions based on trial results in Guangdong. In addition, Sinopec will provide S.F. Express with high quality fuel to ensure supply. Finally, the two parties will actively explore other areas for business cooperation, such as cross marketing and the potential to utilize S.F. Express' service for storage and delivery for Sinopec EasyJoy Convenient Stores and the corresponding online business.

Zhang Haichao, Vice General Manager of Sinopec Group, General Manager of the Sales Company, and Wang Wei, Chairman and President of S.F. Express attended the signing ceremony.

"The collaboration with S.F. Express is another example of the Sales Company in building strong relationships with industry-leading strategic partners. We believe this will be a profitable and beneficial relationship for both parties," said Zhang Haichao. "Not only will it enhance the competitiveness and sustainability of the Sales Company, it will transform the Sales Company into an integrated services provider that is trusted by consumers and addresses the needs of the general public."

 Wang Wei, Chairman and President of S.F. Express said, "S.F. Express will leverage its nationwide logistics network to fully realize the commercial potential of the Sales Company. Sinopec currently operates over 30,000 gas stations across the country. The partnership will utilize the complementary strengths of the two parties to create synergies in resource sharing and mutual development."

Sinopec Sales Co., Ltd. has the most comprehensive refined oil sales network and storage and transportation facilities in China. It is the largest provider of refined oil in terms of number of gas stations in China and the second largest in the world. As of the end of 2013, the Sales Company has over 30,000 self-operated gas stations and 80 million gas card holders. It took over 60% share of China's refined oil market in 2013.

S.F. Express is one of the largest private delivery services companies in China with nationwide courier network. Apart from traditional delivery business, S.F. Express also operates "Heike Stores" and e-commerce website Youxuan, and offers Fresh Product Delivery Service.