Company founder Deng Jianjun explains some of his company's  customer and business models. [Photo/WeChat ID: hefeigaoxinfabu]

To many, e-commerce fast-moving consumer goods or FMCG service provider Xinniao Technology – based in the Hefei high-tech zone in Hefei city, capital of East China's Anhui province – has performed wonders.

It has turned the loss-making FMCG heavy goods delivery of e-commerce platforms – like JD, Pinduoduo and Tmall – into a profit center with its "internet+" logistics model.

Established in April 2020, Xinniao Technology created a nationwide warehouse network system to provide integrated supply chain solutions. It built 15 urban distribution warehouses, 600 front outlets, as well as a distribution team of 1,800 people in 2022.

"The impact of the 2022 epidemic saw us experience many difficulties such as the warehouse closures, but our revenue still doubled, from 38 million yuan ($5.60 million) in 2021 to 87 million yuan in 2022," said company founder Deng Jianjun.

Deng added that reducing the amount of handling and shortening the distribution distance was key for the new model to improve efficiency and reduce costs.

The company's innovative business model can achieve an average delivery time of six hours. With the optimization of the company's delivery system, it is expected that the average delivery time can be shortened to two hours.

The company has plans to promise free delivery for orders that take over two hours.