(Yicai Global) July 21 -- The majority of China’s main express delivery firms reported better business and higher revenues last month, but the sector’s ongoing price war held down profits.

Operating revenue from the express delivery service of industry leader SF Holding rose 7.9 percent to CNY16.7 billion (USD2.3 billion) in June from a year earlier, the Shenzhen-based company said yesterday. SF handled 1 billion parcels, an increase of 10.5 percent, it added.

STO Express’s operating revenue jumped 12.7 percent to CNY3.4 billion (USD474.2 million) last month, while package deliveries surged 28 percent to 1.5 billion. YTO Express Group saw a 3.4 percent gain to CNY4.2 billion and moved 1.8 billion parcels, up 14 percent.

Business generally picked up last month, according to data from China's State Post Bureau. Parcel handling likely jumped about 16 percent from a year ago, while operating revenues rose around 11 percent, its figures showed.

But Yunda Holding's operating revenue dropped 11.5 percent to CNY3.7 billion in June, it said yesterday, adding that package deliveries fell 2 percent to 1.6 billion.

While business and revenues improved, price competition is intense and holds down profits. Per-parcel income at SF, YTO, STO, and Yunda has been shrinking since March.

“The price war is fierce, driving couriers to cut service charges on collecting and delivering parcels,” the manager of an express delivery store told Yicai Global, adding that it had to shoulder some of the increased cost. The outlet will be in the red sooner or later, if fees keep falling, he noted.

SF's revenue per package slid 2.4 percent to CNY16.42 (USD2.29) last month from a year ago, that of STO tumbled 12 percent to CNY2.21 (31 US cents), with YTO seeing a drop of 9.3 percent to CNY2.37 and Yunda a decline of 9.7 percent to CNY2.32, according to their data.

First-half deliveries in China likely exceeded 60 billion parcels, a 17 surge from a year earlier, and operating revenue from express delivery services probably jumped 11.5 percent to more than CNY550 billion (USD76.7 billion), according to the State Post Bureau.

Editors: Tang Shihua, Martin Kadiev