SF Express self-pickup service lockers in Hong Kong. (Paul Yeung/Bloomberg)
SF Holding Co. aims to solidify its time-definite express business by expanding airfreight operations this year to meet intensifying competition in the courier industry.
The expansion of large-item airfreight will remain a key focus area, China’s biggest express-delivery firm said in an exchange filing.
SF Express ranks No. 11 on the Transport Topics Top 50 Global Freight Carriers list.
SF Holding said net income rose 24% to 10.2 billion yuan ($1.4 billion) last year. Sales grew to 284 billion yuan from 258 billion yuan, with 43% coming from the time-definite express segment. Rising freight rates in 2024 also boosted its supply chain and international business.
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Its same-day delivery network coverage will benefit from expanded high-speed rail and same-day airfreight routes, while Chinese government subsidies should stimulate consumer demand and create more opportunities in the logistics sector, the company said.
The plans come as Chinese couriers are seeing intensifying price competition. Leading couriers might be inclined to sacrifice margin for market share to sustain scale economies, Bloomberg Intelligence analysts Lindsay Chen and Kenneth Loh said. Average per-parcel selling prices for the sector fell 18% year-on-year in February, signaling more competition into the March-April seasonal trough, they added.
