News Summary: The globalization process accelerates, J&T EXPRESS-W's profits double

The logistics company saw an 18.5% revenue growth last year and achieved profitability for the first time in the Middle East, Africa, and Latin America markets. Eddie Wu Logistics service provider J&T Express (J&T Global Express Ltd., 1519.HK) reported in its annual report released on Monday that the company accelerated its expansion into Southeast Asia and markets outside of China last year, achieving an 18.5% revenue growth with parcel volume exceeding 30 billion pieces. The company also announced that it achieved full-year profitability for the first time in emerging markets such as the Middle East, Africa, and Latin America. J&T Express's revenue reached $12.2 billion last year, an increase from $10.3 billion in 2024. The company stated that the growth was attributed to improved economies of scale from its network covering 13 countries, advancements in automation, and strict cost control, with adjusted net profit doubling year-on-year to $425 million. During this process, the company's cost per parcel in the Chinese market dropped to a historical low of 28 cents. "2025 will be a fruitful year for J&T's globalization strategy," said Mr. Zheng Shiqiang, CFO. "Our parcel volume and revenue have grown strongly, free cash flow has significantly improved, and we have made breakthrough progress in Southeast Asia and emerging markets." After entering emerging markets such as Saudi Arabia, the UAE, Mexico, Brazil, and Egypt three years ago, the company saw parcel volume in these countries increase by 43.6% year-on-year to 404 million pieces last year. Revenue from emerging markets surged by 51% to $870 million, and adjusted earnings before interest and taxes (EBIT) turned positive for the first time for the full year, reaching approximately $4 million. The company attributed its growth to collaborations with leading e-commerce platforms such as Shein, Temu, TikTok, and AliExpress, as well as deepening cooperation with regional platforms like Mercado Libre, the largest e-commerce platform in Latin America. J&T Express's most profitable region remains its home base in Southeast Asia, where it has maintained its leading position in the express delivery sector for six consecutive years. Parcel volume in Southeast Asia surged by 67.8% year-on-year to 7.66 billion pieces, with revenue increasing nearly 40% to $4.5 billion. Adjusted EBIT in the region soared by 77.5% to $538 million, and the adjusted EBIT margin improved by 2.5 percentage points to 11.9%. J&T Express stated that its capabilities in integrating multi-platform order resources and transplanting operational experience from China to the Southeast Asian market have contributed to significant economies of scale. As of the end of last year, J&T operated 246 distribution centers globally, including a new flagship hub in Guangzhou that began operations in the fourth quarter of last year. To support business volume growth, the company added 1,880 self-owned trunk transport vehicles and expanded its automated sorting systems to 413 sets. Despite facing fierce price wars and industry pressures in its largest revenue source, the Chinese market, J&T still achieved a parcel volume growth of 11.4% to 22.1 billion pieces last year, with revenue increasing by 5% to $6.71 billion. During the year, the company deployed more automated sorting systems and over 1,000 unmanned delivery vehicles, and promoted network automation across China to enhance operational efficiency Last year, the company strengthened the connectivity of the Guangdong-Hong Kong-Macao Greater Bay Area by launching its Hong Kong consolidation business, further expanding the coverage of cross-border logistics. This service also added self-service pickup points and smart express cabinets to enhance customer experience. J&T EXPRESS was founded in Indonesia in 2015, primarily engaged in express delivery services, and has now expanded its global network to 13 countries, covering Asia, the Middle East, and Latin America. The company focuses on the express delivery and cross-border logistics sectors, serving both e-commerce enterprises and providing regular parcel delivery services. Yongzhufang focuses on reporting on Chinese companies listed in the United States and Hong Kong, including sponsored content. For more information, including inquiries about individual articles, please click here to contact us.