Tag: ZJS Express Co Ltd

ZJS Express Co Ltd, a Beijing-based private courier service, is upgrading its operations and management prior to an initial public offering planned for the second half of 2007 in Hong Kong, said company chairman and president Chen Ping.

ZJS Express plans to raise up to 200 mln hkd via its Hong Kong listing but prior to going public is investing in new technology and doubling its branch network.

After the company completes its restructuring and listing, it will significantly narrow the gap in operational quality with major global players who have entered the Chinese market, Chen told XFN-Asia in an interview.

‘The international express firms currently have weak networks in China and operate on higher costs compared with ZJS. We should take this opportunity to further sharpen our competitive edge,’ he said.

ZJS Express’ volume is expected to increase from more than 35 mln items in 2005 to about 50 mln this year, according to Chen.

Earlier this year, the company said that it plans to invest around five mln yuan to expand its network, increasing the number of outlets to over 800 across the country from more than 400.Among measures to improve operational efficiency, the company will separate its contract logistics operations for corporate customers — 40 pct of its revenue — from services provided for individuals. It will also increase administrative staff at its Beijing headquarters by 52 pct to reinforce management, said Chen.

Chen said the firm will also implement personal digital assistants (PDA) and in coming months buy more equipment including automated picking and sorting systems, logistics vehicles and roll containers.

‘We are not short of money for these two years (2006 and 2007). In addition, we will soon obtain additional funds for future development from the Hong Kong IPO,’ said Chen.

The company had a net profit of around 60 mln yuan last year on total revenue of about 600 mln yuan.