STORYLINE:

China's logistics sector demonstrated growing resilience and year-high market optimism driven by improved efficiency and capital turnover in June, despite sustained high operational costs, according to a report by China's leading industry association.

In the month, the main business cost index for logistics enterprises stood at 52.5 percent, according to the latest industry index from the China Federation of Logistics and Purchasing (CFLP), released on Sunday. Throughout this year, the cost index has remained at a relatively high level of around 52 percent, reflecting persistently elevated operating costs.

On the profit front, small and micro enterprises recorded a slight month-on-month increase, while large enterprises saw a modest decline, further narrowing the profit margin gap between large, medium, and small enterprises.

Upticks were also recorded in the equipment utilization, capital turnover rate and inventory turnover frequency indices, which rose by 0.2, 0.1, and 0.2 percentage points respectively compared with the previous month.

These improvements show companies are running more efficiently and have better cash flow, demonstrating that they can handle supply chain disruptions while driving their own growth, according to the report.

He Hui, vice president of the CFLP, attributed the momentum to China's unrelenting construction of the "six networks," namely the water network, the new-type power grid, the computing power network, the next-generation communication network, the urban underground pipeline network and the logistics network.

"Looking ahead at subsequent development, the country's continued promotion of the six networks will support the quality improvement of existing equipment and facilities across various sectors, as well as the construction of new facilities. As one of the key components of the six networks, the Internet of Things will continue to be strengthened, enhancing the adaptability and supporting capacity of logistics equipment and facilities for industrial development," said He.

Industry experts also said that government efforts to improve multi-modal shipping, speed up city deliveries and fix delayed supply chain payments are streamlining business operations across the country. These policies are boosting confidence, with the June business outlook index holding steady at a year-high 55.9 percent.

DESCRIPCIÓN DE IMÁGENES

FILE: China - Exact Location and Date unknown (CCTV - No access Chinese mainland)

1. Various of warehouses, trucks

2. Various of staff sorting goods in workshop

3. Various of staff member operating forklifts, goods in warehouse

Beijing, China - Recent (CCTV - No access Chinese mainland)

4. SOUNDBITE (Chinese) He Hui, vice president, China Federation of Logistics and Purchasing (ending with shots 5-9):

"Looking ahead at subsequent development, the country's continued promotion of the six networks will support the quality improvement of existing equipment and facilities across various sectors, as well as the construction of new facilities. As one of the key components of the six networks, the Internet of Things will continue to be strengthened, enhancing the adaptability and supporting capacity of logistics equipment and facilities for industrial development."

FILE: China - Exact Location and Date unknown (CCTV - No access Chinese mainland)

5. Aerial shot of warehouses

6. Various of logistics center

7. Various of goods being transported at airport, onto cargo plane

8. Various of parcels on conveyor belt

9. Goods at warehouse, being loaded to train

10. Aerial shot of containers

11. Cargo train running

12. Various of cargo plane, goods being transported to cargo plane

13. Various of containers, cargo ships, port