Postal system posts losses

cctv.com 02-24-2006 13:12

China's postal industry posted a loss in profit equivalent to 50 million US dollars last year. It massively trimmed losses from 2004, but still has a long way to go to get back into the black.

Last year the country's postal savings deposit had a balance of 1.35 trillion yuan, with a net profit of over 57 billion yuan. Profits from express mail services was 6.5 billion yuan. But declining margins were seen in general service sectors, including package, logistics, and newspaper delivery. China's postal service is divided into general and competitive services. But general services has always posted huge losses due to high overhead charges. The country's postal industry suffered losses running into tens of billions of yuan, when it was separated from the telecoms sector. Losses were reduced to 1.1 billion yuan in 2004.

Editor:Chen Zhuo  Source:CCTV.com