Breaking Down Huitongda Network Co., Ltd. Financial Health: Key Insights for Investors

Huitongda Network Co., Ltd. charts an ambitious path from its mission of "Creating a Better Life for Rural People" to a vision of a tech-enabled rural e‑commerce ecosystem, already supporting a retail network of 248,000 member stores across 21 provinces and more than 25,000 villages and towns, while reporting a 42% rise in net profit attributable to the parent in 2023 and AI-related revenue exceeding 20% in H1 2025-deployments of AI that have boosted member-store efficiency by over 30% and cut delivery times by 25%; the company pairs this scale with concrete ambitions to assist over 1,000,000 rural households, pursue a roughly 20% revenue increase toward about ¥10 billion, reduce carbon footprint by 30% within its sustainability timeline, and underpin its customer-centric, innovation-driven, integrity-focused and socially responsible core values-evidenced by a 92% customer satisfaction rate in 2023, a 15% lift in R&D investment in 2024, 100% compliance with data protection rules, and CNY 50 million committed to rural education-while expanding integrated supply-chain brands such as Zhonghuida and Huizhongtian and scaling SaaS+, logistics and omni-channel sales to deliver tech-driven efficiency and supply-chain value creation

Huitongda Network Co., Ltd. (9878.HK) - Intro

• Core business scope: e-commerce solutions, logistics systems, SaaS+ services, and partner ecosystem enablement for member stores.
• Geographic footprint: operations across 21 provinces and municipalities, covering more than 25,000 villages and towns.
• Retail network scale: over 248,000 member stores as of December 31, 2024.

• Empower rural family-owned retailers with accessible digital tools and resilient supply-chain services to improve store profitability and community access to goods.

• Build the most reliable industrial internet platform for China's rural retail ecosystem, enabling inclusive digital transformation and sustainable value creation for members, partners and shareholders.

• Customer-centered: prioritize village and town retailers' needs in product and service design.
• Innovation & technology: drive continual investment in AI, automation and SaaS to raise operational efficiency.
• Integrity & partnership: cultivate long-term, transparent relationships with suppliers, logistics partners and store members.
• Efficiency & sustainability: optimize supply chain flows to lower costs and enhance returns for stakeholders and society.

• Network scale (248,000+ member stores) enables aggregation of demand and improved bargaining power with suppliers, supporting better margins for rural retailers.
• Integration of logistics and SaaS reduces stockouts and inventory turnover times at local stores, strengthening retention within the ecosystem.
• AI adoption (AI-related revenue >20% in H1 2025) supports personalized assortment, demand forecasting and route optimization-directly supporting the company's tech-driven efficiency goal.
• Strong profitability momentum (2023 net profit attributable +42%) underpins reinvestment into technology and rural expansion.

Huitongda Network Co., Ltd. (9878.HK) - Overview

• Mission focus: improve livelihoods of rural communities by enhancing product availability, price stability and store profitability.
• One-stop supply chain: centralized procurement, warehousing, distribution and digital ordering for member stores to reduce working capital and stock-outs.
• Proprietary brands: vertical integration into production and sales with brands such as Zhonghuida (air conditioners) and Huizhongtian (fertilizers) to capture margin and assure quality.
• Omnichannel expansion: deepen reach through both online partnerships and offline chain alliances to broaden SKU access and consumer touchpoints.
• Technology leverage: deployment of AI and data tools to drive inventory/ordering optimization, pricing and store-level digital management-reported to improve operational efficiency by over 30% for member stores.
• Stakeholder alignment: pursue sustainable returns while fulfilling social responsibility commitments in rural development and employment.

• Digital management tools: store-level apps and ERP reduce manual ordering and improve cash conversion cycles for members.
• Integrated production-sales model: in-house brands lower procurement costs and enable targeted promotions tailored to rural demand profiles.
• Channel synergy: combining online marketplaces with offline distribution increases SKU availability and shortens fulfillment times.
• Sustainability & social returns: initiatives aimed at stabilizing rural incomes, expanding employment and delivering shareholder value through scalable, repeatable supply-chain economics.

Huitongda Network Co., Ltd. (9878.HK) - Mission Statement

• Enable access: expand product and service availability to underserved rural communities through member stores and digital channels.
• Empower merchants: equip township and village-level stores with logistics, payments, and marketing tools to increase their competitiveness and incomes.
• Technology first: adopt big data, AI-driven personalization, and secure transaction platforms to elevate customer experience and operational efficiency.
• Sustainable operations: implement eco-packaging, renewable energy usage, and logistics optimization to reduce carbon intensity across the value chain.

• Market leadership in rural e-commerce: scale the network of member stores and digital reach to become a leading ecosystem facilitator across China's rural areas.
• Tech-enabled personalization and security: integrate big data analytics and artificial intelligence to drive targeted marketing, inventory forecasting, fraud detection, and secure payments.
• Rural community support: target assisting over 1,000,000 rural households with reliable access to essential goods, services, and digital commerce capabilities.
• Sustainability commitment: reduce the company's carbon footprint by 30% within five years through eco-friendly packaging, renewable energy adoption in warehouses and offices, and route/logistics optimization.
• Financial trajectory: pursue approximately ¥10.0 billion in revenue (targeting a 20% year-over-year increase), while improving net profit margin and active-user engagement metrics.
• Integrated digital ecosystem: foster seamless connections among member stores, suppliers, logistics partners, and end customers to enhance fulfillment speed, reduce waste, and increase transactional transparency.

• Network expansion - recruit and digitally onboard more township and village stores, strengthening last-mile footprint.
• Platform & data - invest in analytics, AI models, and secure payment mechanisms to drive personalized offers and reduce churn.
• Logistics & sustainability - optimize routes, consolidate shipments, adopt recyclable/biodegradable packaging, and deploy renewable energy in facilities to meet the -30% carbon target.
• Supplier & partner ecosystem - deepen supplier relationships to ensure assortment, pricing competitiveness, and consistent supply for rural demand patterns.
• Community development programs - training, microcredit facilitation, and service bundles designed to raise rural digital literacy and economic participation.

Huitongda Network Co., Ltd. (9878.HK) - Vision Statement

• Customer-Centricity - Deliver superior value to retailers and partners, reflected in a 92% customer satisfaction rate in 2023 and continued investment in customer service enhancements.
• Innovation - Drive continuous improvement and competitive advantage; a 15% increase in R&D investment in 2024 enabled AI-driven supply chain optimization tools that reduced delivery times by 25%.
• Integrity - Uphold regulatory and ethical standards, evidenced by a 100% compliance rate with data protection regulations and the publication of the company's first annual sustainability report.
• Collaboration - Promote cross-functional teamwork; cross-departmental projects in 2023 produced a 40% increase in campaign engagement.
• Social Responsibility - Invest in communities and environment, including a CNY 50 million contribution to rural education programs in 2023 and a commitment to reduce carbon emissions by 30% by 2025.
• Sustainability - Integrate eco-conscious practices across operations, implementing eco-friendly packaging and renewable energy in logistics to lower environmental impact.

• Expand AI and analytics investments to further shorten delivery cycles and optimize inventory.
• Scale customer support platforms to preserve the 92% satisfaction benchmark and reduce churn.
• Embed sustainability across procurement and logistics to meet the -30% carbon target by 2025.
• Deepen community investments with multi-year rural education programs beyond the CNY 50 million initial commitment.
• Maintain rigorous compliance frameworks to protect data and ensure transparency in sustainability reporting.