Logistics firm Sinotrans profit up 77% to US$333.4m

This improved from RMB1.21b (US$186.77m) reported in 2020.

Logistics service provider Sinotrans Limited reported its profit rose to RMB2.16b, approximately US$333.4m, in the first half of the year, up 77.93% from RMB 1.21b (US$186.77m).

Over the same period, the group’s revenue climbed 55.38% to RMB61.67b (US$9.50b) as it recorded increases in three of its major business segments – logistics, forwarding and related business and e-commerce business.

The group’s logistics services revenue amounted to RMB11.73b (US$1.81b), reflecting a 16.49% year-on-year increase.

“The main reason for such development was that the Company deeply cultivated niche markets in contract logistics, by means of innovation in technology and solutions, developed new clients and extended service chain, and realized breakthrough in new energy automobiles and semi-conductor fields to drive the overall growth of the segment,” the Group noted.

Its forwarding and related business and e-commerce business saw 56.55% and 192.75% increases, to RMB42.26b (US$6.52b) and RMB7.67b (US$1.18b), respectively.

Sinotrans cited the growth in its forwarding and related business to the high level of freight rate as well as the fast increase in business volume.

Meanwhile, its e-commerce business grew as Sinotrans actively explored sizeable direct e-commerce clients amongst others.