(Yicai Global) May 31 -- Chinese express delivery behemoth SF Holding will spin off its intracity arm for a listing on the Hong Kong Stock Exchange's main board to diversify its financing channels.

SF Intra-City Industrial's listing should improve its comprehensive competitiveness and meet the interests of its shareholders, the Shenzhen-based parent said in a statement on May 28.

The initial public offering is not expected to have a substantial impact on SF's capital market performance or its other businesses, it added.

The parent formed the unit in 2019 after detecting the growing demand for quick delivery within Chinese cities. SF holds nearly 66.8 percent of the subsidiary's equity, public data show. After the listing, SF Intra-City will remain a unit of SF, the firm added.

The IPO-hopeful is not profitable. In 2020, SF Intra-City made a net loss of CNY760 million (USD119.4 million) while its revenue was CNY4.8 billion (USD754.4 million). In the first quarter, its net loss was CNY210 million.

In the first quarter, the parent reported a net loss of CNY989 million, the first loss since going public in February 2010, due to the higher costs of labor and developing new business. During the 12 months of 2020, its net profit was CNY7.3 billion (USD1.1 billion).

SF's stock price [SHE:002352] was 1.7 percent down at CNY68.63 (USD10.80) in the morning.

Editor: Emmi Laine, Xiao Yi