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Recently, there have been reports in the media suggesting that Zhongtong Express is in contact with investment banks, considering a secondary listing in Hong Kong. The reports also indicate that Zhongtong may achieve this listing as early a
Recently, there have been reports in the media suggesting that Zhongtong Express is in contact with investment banks, considering a secondary listing in Hong Kong. The reports also indicate that Zhongtong may achieve this listing as early as the end of this year, with a potential fundraising of $1 billion to $2 billion USD.
Following in the footsteps of e-commerce giants like Alibaba, Netease, and JD.com, more and more Chinese concept stocks are choosing to return to the Hong Kong stock market. Could it be that Zhongtong Express, which has been riding on the coattails of e-commerce platforms for years, is also planning to make a "double play" in both China and the United States?
With a market capitalization exceeding 200 billion RMB: "The Invisible King of Express Delivery"
As China's e-commerce industry has rapidly developed, the express delivery industry has become a booming sector. According to data from the State Post Bureau, the volume of express delivery business in China has grown continuously for nine years, surpassing or approaching 50% growth since 2011, making it the world's largest.
Zhongtong Express, established in May 2002, has grown significantly over the past decade. It went public on the U.S. stock market in 2016, and as early as mid-June this year, Zhongtong's market capitalization exceeded 200 billion RMB, surpassing the combined values of Yunda, YTO, STO, Best, and Deppon, ranking second only to Shunfeng in the domestic express delivery market. Currently, Zhongtong's market capitalization stands at $29.04 billion USD.
Additionally, according to the latest "Top 500 Chinese Listed Companies by Market Capitalization" released by financial data company Wind for the first half of 2020, Zhongtong Express has entered the top 100, ranking 57th.
Quietly Leading with Domain Upgrades
As a vital partner of the e-commerce industry, the express delivery sector relies heavily on online shipping and tracking, and all of this is facilitated through domain names, serving as the gateway for online traffic and website visits. Surprisingly, among the prominent express delivery companies in China, only Zhongtong seems to have given serious consideration to domain names.
YTO (Yuantong): Its official website domain is yto.net.cn, where "yt" stands for "Yuantong." However, the domain's suffix is far from ideal. Relevant .com, .cn, and double-pin domains are not owned by the company.
STO (Shentong): Its official website domain is sto.cn, similar in style to Yuantong, but relevant domain names are either not protected or have already been developed. However, the domain name is consistent with the brand name and is short and memorable, making it a passable choice.
Best (Baishihuitong): Its official website domain is 800bestex.com, composed of numbers, English words, and an abbreviation related to express delivery. Both in terms of length and meaning, it can be confusing. Fortunately, the company has protected relevant brand-related domain name suffixes, with 800best.com serving as the official website for Baishiwuliu's e-commerce site.
Yunda: Its official website domain is yundaex.com, which combines the brand's double-pin name with an abbreviation for express. While this is a creative domain, it may not be very memorable and doesn't align with the Chinese preference for pinyin. Currently, related brand domain names are not owned by Yunda, leaving the question of whether they will acquire them.
Shunfeng (SF Express): As the industry leader, Shunfeng holds 286 domain names. Its official website domain is sf-express.com, a combination of "sf" for Shunfeng and "express" for fast service. While it accurately conveys the meaning, it can be cumbersome to type. Fortunately, Shunfeng also owns the short domain sf.cn for redirecting to its official website, enhancing its overall domain name appeal.
Zhongtong: Previously using zto.cn, Zhongtong upgraded its brand domain name to zto.com in 2015, adopting a more internationalized approach. This domain name is consistent with the brand name, and it is only three characters in length, making it easy to remember and type. Additionally, they have protected zto.com.cn/.net, showcasing comprehensive brand domain name protection and making Zhongtong Express an example in the express delivery industry.
In an increasingly competitive era of online shopping in the express delivery industry, Zhongtong's move undoubtedly significantly enhances the company's brand influence and recognition. It also elevates their position in the express delivery field.
Seizing the Opportunity with Domain Names
Companies that value domain names often perform well, and Zhongtong is a prime example.
KD.com is a top-level domain name representing the express delivery industry. A two-letter domain name is concise and memorable, and it's quite rare. Industry-specific domain names hold a leadership position in the industry, making it easy to capture users' minds and carrying significant commercial value. Overall, KD.com has advantages in terms of memorability, SEO optimization, descriptive power, and brand enhancement.
If Zhongtong secures this top-level domain name, users seeing KD.com will immediately associate it with Zhongtong, creating a subconscious sense of trust and support for a platform that uses an industry-specific domain name.
Other domain names related to the express delivery industry include huoyun.com, meaning "freight," which is straightforward and conforms to Chinese users' naming conventions. There's also the single-word domain name kuai.com, meaning "fast," which directly highlights the express delivery industry's characteristics. These domain names are highly suitable for building freight and logistics websites.
In the age of the internet, domain names are a crucial presence. The development of many enterprises is closely tied to the continuous upgrading of domain names. Zhongtong's success is a testament to this, as they have quietly risen to the top and impressed everyone. We look forward to Zhongtong's second listing in Hong Kong!
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