Automation and digitization development in the two shopping festivals of 2020 is expected to help the logistics company recover in Q4 2020.
On November 29, 2020, an ad hoc conference was held by Yunda Holdings to review its performance during the Double 11 shopping festival and to prepare for the next shopping spree, Double 12, which will start on December 12, 2020. According to the conference, the company is speeding up digitization processes – especially on transfer, pick-up and delivery services, to prepare for the new, upcoming 'Double 12' shopping festival.
As one of the most popular logistics companies in China, Yunda Holdings has been focusing on applying automation and digitization to provide a better user experience. On November 11, 2020, the logistics company achieved 100 million pick-ups and deliveries during a single day and hit a historical high.
According to the Q3 financial report, impacted by COVID-19 and price wars among logistics companies, Yunda’s net profit decreased 47.8% year-on-year, to CNY 1.02 billion, and it achieved a revenue of CNY 23.09 billion, down 4.8% year-on-year. Notably, during the reporting period, the company’s operating cash flow plunged 67% to 860 million. However, owing to the two shopping festivals in November and December, the company is expected to gain a remarkable recovery in the last quarter of 2020.