By BAI Fan
SF Express expects to come close to record high profits in Q3 predicting a surplus between 1.9 billion yuan (US$260 million) and 2.1 billion, second only to the 2.8 billion yuan of Q2 2020 and a remarkable recovery from a year ago when SF lost nearly a billion yuan in a single quarter.
The company attributes the strong bounceback to improved efficiency. Since last year, 50 sorting facilities have been closed. Flexible pricing and effective cost control have boosted profits. Overall profits in the first three quarters will be around 4.5 billion yuan.
Kerry Logistics, which SF Express acquired last year, contributed 400 million yuan of profits in Q3. SF Express’s international business has more than tripled in sales from last year and now accounts for 35 percent of total revenue. In August, SF announced plans to expand in Southeast Asia and set up a new entity called Kerry Express International in Thailand.
SF Express opened Ezhou Huahu Airport, its first dedicated cargo hub, in July. The company now has a cargo fleet of 75 planes. Another cargo hub in Guangzhou started operating in October.
The company said Fengwang, its e-commerce shipping business, would be given more autonomy. Fengwang opened two regional headquarters in August.
SF Express shares have lost 60 percent since the February 2021 highs. The company completed a 2-billion stock buyback in September and announced another 2-billion-yuan round the same month.
