By BAI Fan
SF Express, in its 2023 third-quarter report released on the evening of October 30, demonstrated a remarkable feat. Despite a slight dip in revenue, the logistics giant saw its net profit surge by over 40 percent.
During Q3, SF Express' revenue amounted to 64.6 billion yuan (US$8.83 billion), a 6.4 percent decrease. For the first three quarters of the year, the total revenue reached 189 billion yuan, down 5.1 percent. SF’s operating costs for the first three quarters fell by 5.7 percent.
Nonetheless, profit hit 6.26 billion yuan, reflecting a 40.1 percent year-on-year increase. Q3 alone saw an increase of 6.6 percent. Competitors such as YTO, Yunda, and STO, have seen revenue grow with little profit.
Looking ahead, SF Express has three key areas of anticipated growth: consumer goods like clothing, footwear, and cosmetics; small-batch production; and local-life businesses. A "same-city half-day delivery" service now covers over 200 cities—items sent in the morning are delivered in the afternoon, and items sent in the afternoon are delivered the next day.
With a resurgence in demand, there is promising potential for both revenue growth and improved profit margins.
International business is a core development strategy, with an application for a secondary listing submitted to the Hong Kong Stock Exchange. Funds raised primarily be spent on cross-border logistics.
