The price of shares in logistics giant SF Holding slumped 10 percent to 72.72 yuan (US$11.1) on Friday after the company said it expected to book a loss of at least 900 million yuan Q1. Last year in Q1, amid the worst of the coronavirus outbreak, SF managed to make a profit of 907 million yuan.

SF explained the loss as a result of new businesses and new infrastructure, as well as investment in the Internet business and the rising labor cost. The company said large number of e-commerce packages with reduced profits also dragged down the margin.

In its 2020 fiscal report, SF said the new businesses including cold chain logistics, medical transportations, courier service and international express covered nearly 30 percent of the company’s profit last year. 

SF said that if new business sectors keep growing, the loss will soon be covered.