(Yicai  Global) April 24 -- China's leading delivery service provider SF  Holding plans to publicly issue convertible bonds of up to CNY6.5  billion (USD968 million) to buy aircraft, build smart  logistics information systems and construct warehouses.

SF will use CNY1.6 billion for purchasing planes and aviation equipment,  as well as maintenance, the Shenzhen-based firm said in a statement.  Some CNY1.5 billion will be used for systems and some CNY1.6 billion in  bank loans will be paid off.

The firm's net  profit rose by over one-quarter to CNY1.3 billion in the first quarter  while revenue grew 16.7 percent to CNY24 billion, it announced  yesterday. The gross margin increased 0.3 percent point to 18 percent in  the first quarter, boosting the firm's bottom line. 

The company ran up a non-recurring loss of CNY428 million due to changes in  the fair value of financial assets during the three months.

SF released operating data for its supply chain business for the first  time also. Revenue came to CNY393 million in March, accounting for 4.6 percent of total income, meaning that the firm is transforming from a  provider of single delivery services to a comprehensive logistics services supplier. 

Editor: William Clegg