J&T Express released its 2023 results: Southeast Asia's market share ranked first for 4 consecutive years, and the Chinese market made a profit for the first time

HONG KONG, March 22, 2024 /PRNewswire/ -- J&T Express Global Limited ("J&T", "J&T Express", "J&T" or the "Company", stock code: 01519), a global logistics services operator, announced its 2023 annual results. In 2023, J&T Express will achieve high-quality growth, expand its business volume, and comprehensively improve its operational efficiency and service quality.

As a global logistics service provider, J&T Express's express delivery business currently spans 13 countries in Southeast Asia, China, the Middle East, North Africa and Latin America. In 2023, the company's market share and revenue in Southeast Asia, China and new markets will increase compared with the previous year, of which Southeast Asia has ranked first in market share for four consecutive years. Thanks to the rapid growth of J&T in these markets, the company's total revenue for the full year of 2023 will be US$8.849 billion, a year-on-year increase of about 22% from US$7.267 billion for the full year of 2022. A total of 18.8 billion parcels were processed for the year, an increase of 29% from 14.6 billion parcels in 2022.

At the same time, the company's operational efficiency and profitability are improving, with gross profit for the full year turning positive for the first time to $473 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also turning positive for the first time to $147 million, with both gross profit and adjusted EBITDA for the China market turning positive for the first time. At the same time, the Group's adjusted net profit loss narrowed by 71% to an adjusted net loss of US$432 million in 2023, and in 2023, the company's cash flow turned positive and cash generated from operating activities was US$342 million, a significant increase from 2022. As at 31 December 2023, the Group's cash and cash equivalents totalled US$1,483 million.

Fan Suzhou, CEO of J&T Express, said: "Despite the multiple macroeconomic challenges and increasingly fierce market competition, we have firmly grasped the market opportunities for the rapid development of e-commerce in various countries. Relying on our comprehensive logistics network covering the markets in which we operate, thanks to the company's strategy to continuously improve operational efficiency and service quality, and the hard work of all employees, we have achieved a number of milestone results in 2023. Not only have we strengthened our leading position in Southeast Asia, but we have also achieved a breakthrough in profitability in China and a rapid growth in new markets. In addition, we have successfully listed in Hong Kong, opening a new chapter in the company's development. "

"In 2024, we are committed to continuously increasing our market share, deepening cooperation with e-commerce platforms, strengthening infrastructure construction, improving operational efficiency, and increasing investment in technological innovation and sustainable development. 'Together, have a future' is our original slogan, and the management will work together with all employees to continue to create value for customers, shareholders and society. "

Zheng Shiqiang, Chief Financial Officer of J&T Express, said: "In 2023, the company's performance was positive and stable, with strong revenue growth, significant increase in profitability, continuous improvement in cash flow, and a healthier financial position. From 2024 to 2028, global e-commerce retail transaction value is expected to grow at a CAGR of 9%. In each of the 13 markets we cover, e-commerce is growing faster than this global average. We will actively grasp this huge market opportunity and develop targeted market strategies based on our strengths and market positions in various regions to maximize this growth trend, continue to achieve growth, and create more stable returns for shareholders." "

01

Southeast Asia's market share has increased again, and profitability is stable

In the Southeast Asian market, in terms of parcel volume, J&T's market share in 2023 will be 25.4%, an increase of 2.9 percentage points from 22.5% in 2022, ranking first for four consecutive years. Among them, the parcel volume was 3.24 billion pieces, a year-on-year increase of 28.9%, and the full-year revenue increased by 10.56% year-on-year to US$2.633 billion.

The company has established good cooperative relations with multiple e-commerce platforms in Southeast Asia and empowers e-commerce partners in various ways. For example, by providing express delivery services in Indonesia, Malaysia, Vietnam, the Philippines, Thailand and other countries, we provide e-commerce partners with huge network carrying capacity and solve the problem of peak season delivery. During the 2023 Double 12 period, the company handled a single-day peak of more than 16 million parcels in Southeast Asian countries.

The express delivery industry is an industry with significant economies of scale, and the significant increase in parcel volume has further improved the efficiency of the utilization of key infrastructure and resources such as transshipment centers, outlets, and vehicles, and promoted economies of scale. In 2023, the company's average cost per ticket in Southeast Asia steadily decreased, from $0.76 in 2022 to $0.67 in 2023.

In 2023, the average delivery time of the company's parcels in Southeast Asia will be reduced by 6.5% compared to 2022, and the customer complaint rate will continue to decline. With excellent service quality, the company further expands and maintains customers, and has won many recognitions from all walks of life.

02

The Chinese market is profitable for the first time, and the service quality is further improved

In China, through strategic acquisitions, diversified products and services, and refined operations, we have increased our market share while significantly improving profitability and service quality.

In terms of parcel volume, the company's market share in the Chinese market will be 11.6% in 2023, an increase of 0.76 percentage points from 2022. In 2023, the company handled 15.34 billion parcels in China, a year-on-year increase of 27.6%, outpacing the industry growth rate, and full-year revenue increased by 27.7% year-on-year to US$5.229 billion in 2023.

The Chinese market achieved a huge breakthrough in 2023, with both gross profit and adjusted EBITDA turning positive. In 2023, under the fierce competition in China's express delivery industry and a large year-on-year decline in industry prices, the company's single-ticket revenue remained stable compared with the previous year, mainly due to the company's optimization of the parcel volume structure of different e-commerce platforms to obtain more high-quality customers, and the gradual increase in the proportion of reverse and loose single pieces, which further stabilized the company's overall single-ticket express revenue. At the same time, thanks to the scale effect and refined operation management brought about by the growth of business volume, the cost of single express delivery continued to decline, from US$0.40 in 2022 to US$0.34 in 2023.

The company continues to improve the quality of service, and in various logistics service opinion surveys, J&T Express maintains a high level of satisfaction. According to the public data disclosed by the State Post Bureau, the company's average grievance rate in 2023 is 0.54, the lowest among China's major express delivery operators, far lower than the industry average of 4.45, and the company's comprehensive grievance handling index in 2023 is 99.43, which also ranks first among China's major express delivery operators, higher than the industry average of 97.09.

03

New markets are growing at a three-fold rate, and the ability to fulfill contracts has been verified

In the new market, the company actively expands the cooperative relationship with the e-commerce platform, continuously improves and strengthens the local infrastructure construction, and the parcel volume has increased significantly, becoming a brand with strong competitiveness in addition to the local postal express and international logistics giants.

Since entering new markets in the Middle East, North Africa and Latin America in 2022, the company has continuously improved and strengthened local infrastructure construction and continuously improved the regional coverage capacity of the network, with the network coverage rate of the current market exceeding 95%.

In terms of parcel volume, the company entered the top five markets in Brazil, Mexico, Saudi Arabia and Egypt in 2023, and the company's market share in new markets increased from 1.6% in 2022 to 6.0% in 2023, with a package volume of 230 million pieces, a year-on-year increase of 369.0%, and full-year revenue increased by 299.7% year-on-year to US$327 million in 2023.

In 2023, the company will continue to develop and deepen the cooperative relationship between cross-border e-commerce and local e-commerce, and use perfect infrastructure and network coverage to help cross-border e-commerce platforms from customs clearance to final delivery. At the same time, the company has further improved the network carrying capacity by increasing the investment in equipment in the transfer center, increasing the number of trunk vehicles, and building new outlets to meet the growing market demand.

04

We will continue to improve our comprehensive strength and seize the opportunity of rapid growth of e-commerce

In the face of the booming market opportunities in the e-commerce industry, as an independent e-commerce enabler, the company will continue to invest in and comprehensively enhance its comprehensive strength, and seize the historic opportunities brought by the rapid growth of the industry.

In Southeast Asia, the company will further increase its market share and consolidate its leading position by providing high-quality services and competitive prices, in China, it will reach more high-quality customers by improving service quality and brand image, and in new markets, it will focus on high-growth potential markets such as the Middle East and Latin America, and strive to seize the historical opportunity of China's e-commerce going overseas while deepening its localization capabilities.

The company will provide customized services to meet the diversified needs of the platform, help the platform further reduce the cost of fulfillment through competitive prices, and continue to explore the development of new products and new cooperation models with the e-commerce platform.

The company will expand its own fleet of vehicles, increase trunk transportation routes, acquire land in key transportation hubs, and expand transshipment centers and warehousing facilities. In Southeast Asia and China, the company will provide training and technical support to network partners to enhance the overall strength of the entire network. In new markets, the company will further increase the depth and density of network coverage.

The company will continue to optimize the layout and routing planning of the transfer center, increase investment in automation equipment and artificial intelligence technology, standardize the operation process, improve the efficiency of the whole network, and further improve the operational efficiency and service quality.

The company will select high-potential markets through a comprehensive analysis, with a focus on the Middle East and Latin America. At the same time, we will pay close attention to the rapid expansion of our customers in the global market, carefully choose the right time to enter new markets, and ensure that our services and customer needs grow in tandem.

The company will continue to invest in scientific and technological innovation, upgrade key system functions, such as data management, network management, etc., to improve the efficiency of the whole process. In addition, the company will increase the use of digital packaging identification (RFID) to reduce its environmental footprint and support sustainability goals.

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concerning J&T J&T J&T Express

J&T Express is a global integrated logistics service operator with a leading position in the world's largest and fastest-growing markets in Southeast Asia and China. Founded in 2015, the company's express network covers 13 countries including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the United Arab Emirates, Mexico, Brazil and Egypt. Adhering to the tenet of "customer-oriented, efficiency-oriented", J&T J&T Express is committed to providing customers with full-scenario logistics solutions through intelligent infrastructure and digital logistics network, so as to efficiently connect the world and benefit the world.