China Post aims to double its profit in 2003

China’s State Postal Bureau (China Post) is aiming to double its profit to 240 million yuan (US$28.92 million) and increase its revenue by 7.8 percent to 55 billion yuan in 2003, the first year of the end of the government’s subsidies to China Post, Postmaster General Liu Liqing said.

The China Business Times said the target is quite a formidable one, as China Post only recorded 120 million yuan in profit in 2002, helped by one billion yuan worth of subsidies from the government.

The newspaper said China Post started to receive government subsidies in 1999, when the state post bureau spun off its telecommunications businesses.

China Post received eight billion yuan in subsidies in 1999, decreasing to five billion yuan in 2000, three billion yuan in 2001 and one billion yuan in 2002.

It said China Post recorded 14.2 billion yuan in losses in 1999. It made a turnaround in 2001 and posted revenue of 47.1 billion yuan for the year, 18.4 billion yuan more than in 1999.

China Post maintained its momentum in 2002 and recorded a profit of 120 million yuan and a revenue of 51.03 billion yuan for that year.

The newspaper added that China Post set up a logistics company in Beijing earlier in the month with registered capital of 100 million yuan.

The logistics company plans to set up a national logistics network over the next three to five years, and is targeting a revenue of three billion yuan in 2003, increasing to 10 billion yuan by 2005.

China Post currently offers logistics services in Beijing, the southern province of Guangdong and the eastern province of Shandong, for large clients including Haier Group and Beijing Guomei Electric Appliances Co Ltd.