SF Express Achieves Just Over 1 Billion Yuan in Q3 Net Profits, Down 43.49% YoY

SF Express (Group) Co., Ltd. reported its 2021 Q3 results on Thursday, showing that its revenue in the period totaled 47.517 billion yuan ($7.43 billion), a year-on-year increase of 23.53%. Meanwhile, net profits were 1.038 billion yuan, down 43.49% year-on-year.

SF Express earned a revenue of 135.86 billion yuan in the first three quarters of 2021, a year-on-year increase of 23.97%, while its net profits during the same period were 1.798 billion yuan, down 67.89% year-on-year.

In terms of main business, SF Express delivered 7.736 billion packages in express logistics in the first three quarters, a year-on-year increase of 36.39% on the basis of the high growth rate of 75.06% in the same period last year.

In addition, the government subsidies SF Express included in its current profits and losses in the third quarter was 248 million yuan, while that of the first three quarters was 630 million yuan. Government subsidies mainly include financial support to the logistics industry, transportation capacity subsidies, tax refunds, post stabilization subsidies and so on.

As of September 28, 2021, SF Express has successfully acquired 931,209,117 shares of Kerry Logistics Network Limited through SF’s holding subsidiary Flourish Harmony Holdings Company Limited, accounting for about 51.5% of the issued share capital of Kerry Logistics on the pay day. Kerry Logistics has thus become a holding subsidiary of SF Express and was included in the latter’s financial reports. This is the main reason for the large year-on-year changes in the consolidated balance sheet of SF Express in Q3.

For expanding the layout of overseas industries, better connecting with the resources of overseas high-quality enterprises, and further improving the core competitiveness and profitability, SF Express has invested more in Foundation Capital IX, L.P., a well-known private equity fund in Silicon Valley. The fund mainly invests in high-growth enterprises, and its scale is expected to register at $450-475 million dollars.

SEE ALSO: Chinese Logistics Giant SF Express Suffers Loss in Q1 2021

According to data released by the State Post Bureau of China, in September, the volume of express delivery service nationwide was 9.45 billion pieces, a year-on-year increase of 16.8%. Business revenue reached 92.14 billion yuan, up 11.8% year-on-year. Compared with last year, the express delivery industry has recovered as a whole, and may usher in a turning point as the “Double Eleven” shopping festival is around the corner on November 11.