China's express delivery industry is shifting from scale-oriented to quality-focused development. However, this transition faces a challenge: rising volumes paired with falling prices, leading to profit instability. Using panel data from five listed companies (2016–2024), this study examines how price competition impacts profit volatility and the stabilizing role of terminal network density. The results highlight three points. First, aggressive price competition significantly intensifies profit volatility (β=2.048, p<0.01), confirming that price wars undermine financial stability. Second, terminal network density acts as a buffer. It reduces the negative shocks from price competition, helping companies absorb market fluctuations. Third, firms with direct operation models demonstrate stronger risk resistance than franchise-based ones due to better outlet control. These findings offer practical evidence for investment strategies and industry management.
Guan Yinqing (Wed,) studied this question.