(ATF) Shunfeng Holdings, the parent of delivery company SF Express, saw operating profit jump 48% in April as Chinese consumers continued to buy heavily online even after coronavirus lockdowns had been lifted.
The Shenzhen-based largest courier in China said operating income, including supply chain business, reached 12 billion yuan ($1.71 billion) in the month, up 48% year-on-year. The number of packages it carried climbed 88% to 611 million, far exceeding the industry’s 32% growth rate.
Shunfeng said in its monthly express service business briefing that revenue climbed 28% to 544 million yuan.
E-commerce, online streaming services and digital gaming saw steep increases in new users and earning in the first quarter as lockdowns that forced millions of Chinese to stay at home during the coronavirus epidemic turned to the internet for shopping and entertainment.
Tianfeng Securities said “consumption inertia” brought about during the epidemic period led to a higher-than-expected increase in online sales, potentially giving express delivery companies a longer-term boost.
The transformation comes as the government places greater emphasis on the digital economy as it seeks to rebuild business in the coronavirus fallout. Legislators this week were told that the electronic industries would receive additional stimulus in the country’s next industrial development blueprint.
Citic Construction Investment Research said competition among e-commerce platforms would speed up the expansion of express packages. The number of items shipped continues to exceed expectations, and is expected to grow in excess of 30% in the near future.