It’s all-out war in China’s parcel delivery sector.
Nasdaq-listed ZTO Express became the last top Chinese delivery firm to release third quarter earnings this week, posting growth in both revenue and net profit. It’s not alone — Caixin analysis shows while the fierce competition in the sector is only increasing, some companies are faring better than others.
Shenzhen-listed STO Express and Yunda Holding, which owns Yunda Express, saw net profits drop 63.23% and 32.81% respectively, while New York-listed Best Inc. saw its net losses improve by 86.9% to 6.7 million yuan.
Meanwhile ZTO, Shanghai-listed YTO Express, and Shenzhen-listed SF Holding — which operates No. 1 player SF Express — saw their revenue and net profits grow, with SF’s net profit up 54.01%.
Chinese delivery firms have opted to sacrifice margins per order to grow their business, seeking to wrench market share from competitors in a crowded sector. Analysis from Industrial Securities suggests that income per order dropped almost across the board, and the sector as a whole saw average income per order decline by 2.24% on the previous quarter.
Get all the details in the full story later today on Caixin Global.
Contact reporter Isabelle Li (firstname.lastname@example.org)
An earlier version of this story misstated the change in Best Inc.'s net losses.