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J&T Express Captures E-Commerce Logistics Crown in Southeast Asia

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Michael Chen

March 22, 2024 - 11:57 am

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J&T Express Triumphs in E-Commerce Logistics with Dominant Southeast Asian Market Share

Stellar Performance in 2023 Elevates Industry Presence

HONG KONG, March 22, 2024 – J&T Global Express Limited, known widely as J&T Express, and referred to colloquially as J&T, with stock code: 01519, a titan in worldwide logistics services, proudly unveiled its annual performance for the year 2023. Exhibiting remarkable growth in multiple facets of its operations—boosted business volume, enhanced operational efficiency, and superior service quality—it has indeed been a landmark year for J&T Express.

Operating in 13 countries across various continents including Southeast Asia, China, the Middle East, North Africa, and Latin America, J&T Express has achieved an impressive uptick in market share and revenue in Southeast Asia and China, in addition to its soaring performance in nascent markets. The company delightfully secured the number one spot for parcel volume in Southeast Asia for the fourth year running. This expansion has catapulted its annual revenue for 2023 to a staggering US$8.85 billion, up by roughly 22% from the US$7.27 billion reported in 2022. Handling a record-breaking 18.8 billion parcels, J&T Express has seen a 29% increase over the previous year's volume.

In 2023, J&T Express achieved a notable milestone—for the first time since inception—a positive full-year gross profit of US$473 million. Its inaugural positive adjusted Earnings Before Tax, Interest, Depreciation, and Amortization (EBITDA) surged to US$147 million. Both the gross margin and adjusted EBITDA in China recorded positive figures for the first time as well. The firm's adjusted net loss took a plunge by 71% down to US$432 million in 2023. Additionally, cash flow turned a new leaf, with operating activities generating US$342 million, a testament to the company's remarkable improvement compared to the previous year. As December 31, 2023 came to a close, J&T's cash and cash equivalents were a healthy US$1,483 million.

A Vision of Resilience and Innovation

Steven Fan, the Executive President of J&T Express, reflected on the company's journey through a period laden with macro-environmental challenges and fierce competition. With a sharp focus on rapid e-commerce development in their operating markets and powered by their extensive logistics network, continuous operational improvements, and the team's dedication, J&T reached significant landmarks in 2023. Not only did the company fortify its position in Southeast Asia, but it also forged a path to profit in its China operations and marked substantial progress in emerging markets. Closing a pivotal year, J&T Express transitioned into a publicly-listed company in Hong Kong, heralding a new era for the organization.

Looking forward to 2024, Fan proclaims the company's unwavering commitment to further advance their market share, deepen ties with e-commerce platforms, bolster their infrastructure, and prioritize operational efficiency. Investments in technological innovation and sustainable development are also a top priority. Under the rallying call of "Together For a Brighter Future," management teams are uniting with employees to drive continuous value creation for customers, shareholders, and the broader society.

Dylan Tey, J&T Express's Chief Financial Officer, further commented on the momentous strides of the company in 2023, highlighting the revenue spikes, profitability improvements, enhanced cash flows, and financial fortification. Projecting ahead, Tey anticipates a compound annual growth rate of 9% in global e-commerce retail transaction volume from 2024 to 2028. With J&T Express's performance outstripping this global average in their operative markets, the company is primed to exploit this formidable market landscape by formulating niche strategies to galvanize growth, optimize returns, and bolster shareholder value.

Heightened Influence in Southeast Asia

In Southeast Asia, J&T Express consolidated its parcel volume market share to 25.4% in 2023 from 22.5% the preceding year. This dominance translates to handling 3.24 billion parcels—a 28.9% surge over the prior year—and generating an annual revenue of US$2.63 billion, an increase of 10.56% from the previous year. With robust partnerships forged with various e-commerce platforms in Southeast Asia, J&T was able to meet the rush of delivery demands, particular during the "Double 12" event where they impressively managed more than 16 million parcels daily.

The express industry thrives on scale, and J&T’s increased parcel volume has fortified key infrastructure and resource utilization, such as transshipment centers, outlets, and vehicles. In 2023, J&T’s average cost per parcel in the region diminished from US$0.76 to US$0.67. Moreover, year-on-year parcel delivery times were shaved by 6.5%, and continuous service improvement heralded a decline in the complaint rate, bolstering its community reputation and customer base expansion.

Market Breakthrough in China

In China, J&T made significant strides by increasing its market share and enhancing its profitability and service quality. Strategic acquisitions, diversification of services offered, and streamlined operations bolstered its market presence. The market share here for parcels soared to 11.6% in 2023, a boost of 0.7 percentage points over the previous year. Total parcel volume leaped to 15.34 billion, a year-on-year growth of 27.6%, easily surpassing the industry average, with annual revenue scaling by 27.7% to a substantial US$5.23 billion.

In the cutthroat express delivery industry, J&T Express carved out a remarkable achievement—posting a positive gross profit and adjusted EBITDA for the first time. This triumph came despite the fierce price war in China. The firm's per-parcel revenue stabilized due to effective volume mix adjustments, customer acquisition, and a higher portion of return and bulk shipments. Operating efficiencies and the cost-effective benefits of scalability also drove per-parcel delivery costs from US$0.40 down to US$0.34 over the year.

Leap into New Geographies and Economies

Growth in new markets and economies presented J&T with burgeoning opportunities. By enhancing engagement with major e-commerce platforms and escalating local network infrastructure, J&T emerged as an influential player alongside local and international logistics brands. The company’s network coverage rate exceed 95% in these markets, marking a top five presence in nations like Brazil, Mexico, Saudi Arabia, and Egypt in 2023. An astounding increase in market share, from 1.6% to 6.0%, was coupled with a 369.0% growth in parcel volume reaching 230 million. Full-year revenue in these new markets jumped a wild 299.7% to US$327 million.

Forging strategic partnerships, J&T Express is dedicated to providing comprehensive logistical solutions from customs clearance to last mile delivery, meeting market-specific needs. With substantial investments in improving infrastructure, such as upgrading transshipment centers, expanding vehicle fleets, and opening new outlets, they aim to cater to the demands of an expanding market.

Harnessing the E-Commerce Surge

Amidst the burgeoning e-commerce industry, J&T commits to investing in capability enhancements to capitalize on the sector's explosive growth. The firm plans to augment its fleet, amplify line-haul routes, acquire strategic transportation hub land, and widen sorting and warehousing facilities. To boost overall network strength, they aim to provide training and technical support to network partners. Furthermore, the company will intensify network coverage, optimize sorting center footprints, and invest in automation and artificial intelligence to boost operational efficiency and elevate service quality.

J&T boldly endeavors to target high-growth markets, focusing particularly on the Middle East and Latin America, staying attuned to their customers' global expansion strategies. Technological innovation remains at the forefront, with systemic improvements planned for data management and network management to raise end-to-end proficiency. Moreover, the adoption of RFID technology reflects J&T's commitment to minimizing environmental impact and propagating sustainability goals.

About J&T Express

Founded in 2015, J&T Express is a leading name in global logistics, with a robust express delivery network spanning across Southeast Asia and China—the largest and fastest-growing market. The company's extensive footprint covers 13 countries, including economic powerhouses such as Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil, and Egypt. Steered by a "customer-oriented and efficiency-based" philosophy, J&T Express dedicates itself to providing customers with top-tier, comprehensive logistics solutions, ensuring intelligent infrastructure and a digital logistics network as part of its mission to connect the world with unrivaled efficiency and bring logistical benefits to all. To learn more about J&T Express and its services, please visit J&T Express' official website.

SOURCE: J&T Express

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