With the consumer market accelerating online and offline development, express delivery is gradually becoming the main channel for online consumption.
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Affected by the COVID-19, there was a considerable decrease in the express industry's business volumes. SF Express showed a decline of about 28.16% of its operating incomes in the first quarter, around CNY 35.53 billion. However, with better control of the COVID-19 pandemic, the express industry is gradually recovering, especially SF Express.
According to the recent data, SF Express obtained operating incomes of CNY38.46 billion for the third quarter, a growth rate of about 34%. The net profits presented an increase rate of 51.55%, about CNY 1.84 billion.
Different business sectors could explain the firm's good performance in the third quarter, and its two traditional businesses were the primary income sources. Specifically, 44.3% of its operating income came from the high-end consumption sector, and 27.9% came from customized products. Moreover, its new businesses were gradually becoming its new drivers of operating incomes, such as the express business and cold transport business.
SF Express's expansion in the air traffic network also helped to improve its efficiency and profitability. For instance, the firm has opened the fifth intercontinental airlines on 7th November, connecting Shenzhen and Los Angeles. Moreover, its airline capacity broadened Wuhan's transport channels during the epidemic period.