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HONG KONG, March 22, 2024 /PRNewswire/ -- J&T Global Express Limited ('J&T Express' or 'J&T' or 'the Company', stock code: 01519), a global logistics service provider, has announced its 2023 results. In the past year, J&T Express achieved significant growth, expanded its business volume, and improved operational efficiency and service quality.
As a global logistics service provider, J&T Express operates in 13 countries across Southeast Asia, China, the Middle East, North Africa, and Latin America. In 2023, the Company experienced growth in market share and revenues in Southeast Asia, China, and New Markets compared to the previous year. J&T Express was ranked first in terms of parcel volume in Southeast Asia for the fourth consecutive year. As a result of the exponential growth in these markets, the Company's total revenue for the full year of 2023 reached US$8.85 billion, an approximately 22% year-on-year increase from US$7.27 billion in 2022. The total number of parcels handled for the year was 18.8 billion, a 29% increase from 14.59 billion in 2022.
Furthermore, J&T Express demonstrated significant improvements in operational efficiency and profitability. For the first time since its launch, the Company achieved a positive full-year gross profit of US$473 million. Additionally, the Company achieved positive adjusted Earnings Before Tax, Interest, Depreciation, and Amortization (EBITDA) for the first time, reaching US$147 million, while both the gross margin and adjusted EBITDA in the China market also showed positive results for the first time. Moreover, the Company's adjusted net loss narrowed by 71% to US$432 million in 2023. In the past year, the Company's cash flow turned positive, with operating activities generating US$342 million, representing a significant improvement compared to 2022. As of December 31, 2023, the Company's cash and cash equivalents amounted to US$1,483 million.
Steven Fan, Executive President of J&T Express, stated, "Despite facing multiple challenges from the macro-environment and increasingly fierce market competition, we capitalized on the rapid development of e-commerce across the various markets. Leveraging our extensive network of logistics outlets, continuous improvement in operational efficiency and service quality, and the unwavering dedication of our employees, we achieved significant milestones in 2023. We not only reinforced our leading position in Southeast Asia, but also achieved a breakthrough in profitability in our China business and registered rapid growth in emerging markets. Additionally, we became a public-listed company in Hong Kong, marking the beginning of a new chapter in our journey."
"In 2024, we are committed to further improving our market share, deepening our cooperation with e-commerce platforms, strengthening our infrastructure, enhancing operational efficiency, and increasing investment in technological innovation and sustainable development. 'Together For a Brighter Future' remains our unwavering slogan, and the management team will work together with all employees to continuously create value for our customers, shareholders, and society."
Dylan Tey, Chief Financial Officer of J&T Express, commented, "In 2023, the Company demonstrated exceptional performance with significant revenue growth, improved profitability, increased cash flow, and a strengthened financial position. Looking ahead, the compound annual growth rate of global e-commerce retail transaction volume is expected to reach 9% from 2024 to 2028. Notably, the growth rate of e-commerce business in each of the 13 markets where we operate has surpassed this global average. We will proactively capitalize on this significant market opportunity by developing targeted market strategies that leverage our strengths and market positions in each location, aiming to maximize growth, deliver more significant returns, and generate robust shareholder value."
01
Increased Southeast Asia Market Share and Enhanced Profit Stability
In Southeast Asia, J&T Express maintained a market share of 25.4% in 2023 in terms of parcel volume, a 2.9% increase from 22.5% in 2022, securing the top spot for the fourth consecutive year. The Company handled a total of 3.24 billion parcels, representing a year-on-year increase of 28.9% and achieved a full-year revenue of US$2.63 billion, up 10.56% compared to the previous year.
J&T Express has fostered strong relationships with several e-commerce platforms in Southeast Asia, empowering its partners in various ways. For instance, the Company provides e-commerce partners with a vast network carrying capacity to address peak season delivery challenges by offering express services in Indonesia, Malaysia, Vietnam, the Philippines, Thailand, among others. On 2023 "Double 12", the Company successfully handled a peak of over 16 million parcels per day in Southeast Asia.
The express industry benefits from significant economies of scale, and the substantial growth in parcel volume has further enhanced the efficiency in the utilization of key infrastructure and resources, such as transshipment centers, outlets and vehicles. In 2023, the Company's average cost per parcel in Southeast Asia has steadily declined from US$0.76 in 2022 to US$0.67 in 2023.
In 2023, our average delivery time for parcels in Southeast Asia was shortened by 6.5% year-on-year, while the complaint rate continued to decline as well. By virtue of our outstanding service quality, the Company further expanded its customer base and gained widespread recognition from the local community.
02
Breakthrough in China Market with Positive Profitability
In China, the Company successfully expanded market share and further improved its profitability and service quality through a series of initiatives including strategic acquisition, service offering diversification and streamlined operation.
In terms of parcel volume, our market share in China stood at 11.6% in 2023, an increase of 0.7 percentage points compared to 2022. In 2023, our parcel volume in China increased by 27.6% year-on-year to 15.34 billion, outpacing industry average. Our full-year revenue increased by 27.7% year-on-year to US$5.23 billion in 2023.
In the China market, J&T Express achieved a significant milestone in 2023 by yielding a positive gross profit and adjusted EBITDA for the first time. Despite the fierce competition and escalating price war in China's express delivery industry in 2023, the Company's per-parcel revenue remained stable compared to the previous year, attributed to the optimization of volume mix across different e-commerce platforms, acquisition of high-quality customers and increase in the proportion of return delivery and bulk shipments. Additionally, due to the economies of scale brought by volume growth and streamlined operational management, our per-parcel delivery cost continued to decline, dropping from US$0.40 in 2022 to US$0.34 in 2023.
The Company continuously improves its service quality and maintains a high level of satisfaction in various logistics services opinion surveys. According to the data disclosed by the State Post Bureau, the Company's average complaint rate in 2023 was 0.54, the lowest among China's major express operators and much lower than the industry's average of 4.45; the Company's score for complaint handling in 2023 was 99.43, ranking J&T Express as No. 1 among China's major express operators and higher than the industry's average of 97.09.
03
Expansion into New Markets and Emerging Economies
In the New Markets, the Company has deepened its cooperation with major e-commerce platforms and continued to improve local network infrastructure. The significant growth in parcel volume handled by the Company has made J&T Express another strong competitor alongside local operators and international logistics giants.
Since setting foot in the Middle East, North Africa, and Latin America in 2022, the Company has continued to improve and strengthen local infrastructure to improve regional network coverage. Network coverage rate in these markets has exceeded 95%.
In terms of parcel volume, the Company was ranked top five in Brazil, Mexico, Saudi Arabia, and Egypt in 2023. The Company's market share in the New Markets increased from 1.6% in 2022 to 6.0% in 2023. The total parcel volume reached 230 million, representing a remarkable year-on-year growth of 369.0%. The Company's full-year revenue also witnessed a spike of 299.7% to US$327 million in 2023.
Throughout the year, the Company continued to develop and deepen its partnerships with both cross-border and local e-commerce platforms and provided one-stop logistics solutions, from customs clearance to last mile delivery, to meet the needs of specific market, capitalizing on its well-established infrastructure and extensive network coverage. Additionally, the Company has invested in upgrading transshipment centers, expanding fleet of long-haul vehicles, and establishing new outlets to further enhance its network capacity, thereby meeting the ever-increasing market demands.
04
Ride on the E-Commerce Boom
In the face of flourishing market opportunities presented by the e-commerce industry, the Company, as an independent e-commerce enabler is committed to continuously investing and enhancing its overall capabilities to seize the historic opportunities brought by the industry's rapid expansion.
In Southeast Asia, the Company strives to increase its market share and enhance its leading position by providing high-quality services at competitive prices. In China, our focus will be on further uplifting service quality and brand image to reach a broader base of high-quality customers. In New Markets, we will place greater emphasis on high-growth potential regions such as the Middle East and Latin America, as the Company aims to seize the historic opportunity of Chinese e-commerce platforms expanding internationally while deepening local capabilities.
The Company will provide customized services to cater to the diverse needs of platforms, enabling them to reduce fulfillment costs through competitive pricing. Additionally, the Company will continue the discussion with e-commerce platforms to develop new products and explore innovative partnership models.
Going forward, the Company will expand its fleet, increase line-haul routes, acquire land in key transportation hubs, and expand sorting centers and warehousing facilities. In Southeast Asia and China, the Company will offer training and technical support to network partners, bolstering the overall capabilities of the entire network. In New Markets, the Company will further enhance the depth and density of network coverage.
The Company will continue to optimize the footprint of sorting centers and route planning and increase investments in the automated equipment and artificial intelligence technology. The Company is also committed to standardizing operational processes and elevating the workforce efficiency across the entire network, to further enhance operational efficiency and service quality.
The Company will conduct a comprehensive study to identify high-growth potential markets, with a specific focus on the Middle East and Latin America. At the same time, we will closely monitor our customers' global expansion initiatives and enter new markets at the right timing to ensure that our services could respond to customers' evolving needs in a timely manner.
The Company will continue to invest in technological innovation to upgrade key system functionalities, such as data management and network management, with the aim of enhancing end-to-end efficiency. Additionally, the Company will broaden the application of RFID technology to reduce its environmental footprint and support sustainability goals.
About J&T Express
J&T Express is a global logistics service provider with leading express delivery businesses in Southeast Asia and China, the largest and fastest-growing market in the world. Founded in 2015, J&T Express' network spans thirteen countries, including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil and Egypt. Adhering to its "customer-oriented and efficiency-based" mission, J&T Express is committed to providing customers with integrated logistics solutions through intelligent infrastructure and digital logistics network, as part of its global strategy to connect the world with greater efficiency and bring logistical benefits to all.
