China Post targets H1 revenue of 26.4 BLN Yuan, up 6.73% yr on yr
China State Post Bureau (China Post) is aiming to record 26.4 bln yuan in revenue for the first half of this year, up 6.73 pct year-on-year and representing 48 pct of the full-year revenue target, the China Economic Times reported, citing Liu Andong, a China Post director.
The newspaper said China Post plans to increase its registered logistics subsidiaries to 20 in the first half, and further strengthen its cooperation with foreign partners, including Japan’s Mitsui & Co Ltd.
China Post said earlier that it had 77,315 outlets around China as of end-2001, of which 59,935 were in rural areas.
It has a fleet of 14,446 vehicles, 10 aircraft and 15 boats.
China Post maintained its growth momentum in 2002, recording a profit of 120 mln yuan and a revenue of 51.03 bln that year. It plans to double its profit to 240 mln yuan this year.
China Post is losing lucrative express post business to foreign competitors, including FedEx Corp (NYSE FDX), TNT Holdings BV, United Parcel Service Inc (NYSE UPS) and DHL International Ltd.
But the company is making zero-risk profits from its savings deposits business, which accounts for one-third of its overall profit, due to favorable interest rate policies, local media reported.
It attracts depositors by offering higher interest rates than banks, but does not extend loans. It deposits the savings into the People’s Bank of China, as it receives higher interest rates from the central bank.
China Post has applied to the State Council to spin off and seek an overseas listing for assets in six provinces and municipalities before the end of 2003.
It recorded 14.2 bln yuan in losses in 1999, before turning around in 2001. Revenue in 2001 stood at of 47.1 bln yuan, 18.4 bln yuan more than in 1999.
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