Kerry Logistics Network is planning to enter the mainland express courier market - a rare move taken by foreign companies - after reporting double-digit growth in its profits last year.
Core net profit, excluding one-off gains or losses, grew 10 per cent to HK$976 million from 2013. Turnover rose 6 per cent to HK$21.1 billion.
Kerry, which operates mainly in the business-to-business logistics sector, including integrated logistics and freight forwarding, was among the three foreign companies that obtained express parcel delivery licences from the mainland's State Post Bureau in December.
The licence, which does not include delivery of letters, is granted on a city-by-city basis and Kerry has been approved in 19 cities.
"The entire application process for foreign logistics company is tedious. There are remaining licences in three batches to be secured by the end of this year," Edwardo Erni, China and North Asia managing director, told reporters on Thursday.
"China's courier market is very chaotic and regulated with cutthroat price wars. We have to be very cautious in making a big move. Our initial plan is to start a pilot scheme in the next three to six months in Shanghai, Beijing, Shenzhen and Guangzhou, where we have adequate volumes to support a trial run.
"Experts' views are this year will see a reshuffling of the mainland's courier market. When the market consolidates, we will be able to move on and make acquisitions."
