Postal Finance
Express Mail2012-03-09

To face furious competition in EMS market in 2007, we optimized the structures of our trunk routes and carried out such measures as running our EMS operation with specialized facilities and by specialized talents and making cost/benefit accounting in some key regions. Our efforts to revitalize our operational mechanisms in this sector proved to be fruitful and our yearly EMS business volume completed recorded 330 million pieces, a growth of 20.9% compared to the previous year, with a total operating income surpassing the threshold of 10 billion yuan, 24% higher than the previous year.

The EMS of China Post is a globally known brand and broadly acknowledged by the society and enjoys good reputation. Pursuing our set service philosophy of "whole-heartedness, full speed and global reach", the EMS of China Post has developed a product portfolio composed of such service brands as "EMS Moon-cake Festival", "Next Morning Delivery", "Next Day Delivery", "EMS Linking Five Festivals" and a sub-brand of "Overnight Flight" for the line of our transportation force, forming a EMS brand family with an additional "Next Morning Delivery" star brand. The "Next Morning Delivery" has become the most competitive product of our China Post. In 2007, the renewal of our invitation of Liu Xiang, the Olympic gold medal winner, to be the Image Ambassador for EMS helped further improve our EMS reputation in the society.

Our EMS "Oversea Student Express Delivery" and series of international market promotion activities during the hot seasons of the year also helped with our international business. A series of newly started services such as E-commerce Express Mails, Domestic Economic Express Mails and Intra-City Mailbox Express Mails were also accelerators for the rapid growth of our domestic express mail business, of which the business of physical mails recorded a growth of 34% over the previous year. The completion of removal of our "Overnight Flight Hub" from Shanghai to Nanjing in 2007 resulted in a broader coverage of our overnight flight business. In the year, we also adjusted and optimized our EMS trunk routes, established and consummated the integrated EMS intra-city networks in megapolises. We tried many ways to make us more initiative in transporting international mails, including chartering postal airplanes, hiring shipping spaces and hiring cargo spaces on weight basis. In addition to 3,000 EMS production vehicles in 116 important cities, we also equipped our EMS sector with 8000 portable terminals for EMS mails receiving and delivering. The newly imported 2 airplanes further strengthened our Overnight Flight's transportation capacity.

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