(Yicai Global) March 18 -- Chinese delivery giant SF Holding gained nearly CNY100 billion (USD15 billion) in operating revenue last year, but its profit fell 4.6 percent. 

This is the first decline in the firm's annual net profit since it went public, its 2018 financial results released on March 15 show.

The Shenzhen-based company has suffered short-term hardships from high costs and the drag of new business on its gross profit margin.

SF achieved CNY91 billion in operating revenues last year, up 28 percent from 2017, from a rise in number of delivery runs and transport charges, but its net profit attributable to shareholders dropped to CNY4.6 billion on higher transport costs.

It delivered 4 billion parcels last year, up 27 percent from 2017. The firm earned CNY90 billion from express logistics, up 27 percent which is higher than the average growth in the field. High-quality service has won it more goodwill than its peers. 

The firm's average revenue was CNY24 (USD3.60), CNY22, CNY23 and CNY23.20 per parcel from 2015 to 2018, far above the par of CNY12 to CNY14 in the sector.

SF spent more on its transport capacity for new businesses, so its transit costs rose rapidly, and it had to hire more staff. It also increased its outlays on medical treatment, food, lodging and training for employees and expended more on venues for new business, the firm cited as the reasons for its declining business performance. Its leasing cost growth was also slightly higher than the growth in its operating revenues.

The company spent CNY2.7 billion on technology last year and has more than 5,754 employees (including outsourced ones) working in technology. This investment went into Big Data, blockchain, artificial intelligence decision-making, smart logistics maps, automated sorting equipment, smart hardware, logistics drones, digital warehousing, smart packaging and information security. 

The company had filed applications for and obtained 1,645 patents, including 649 for inventions, by the end of the reporting period.

SF's stock [SHE:002352] closed 1.95 percent higher at CNY36 per share on March 15.

Editor: Ben Armour