Asian logistics group J&T turns first profit in China, making up bulk of its revenue, despite price war
- J&T Global Express made US$58.8 million in gross profit in China while fending off fierce competition from SF Express, STO Express and YTO Express
- Most the logistics giant’s revenue now comes from China, where it is the sixth-largest express delivery firm
Asian logistics group J&T Global Express reported its first annual profit in China after a big expansion push last year, despite an escalating industry price war in its first earnings report since going public in Hong Kong in October.
The company recorded a gross profit of US$58.8 million and adjusted earnings before interest, taxes and amortisation of US$30.7 million in China last year, the first positive results for both since it entered the market four years ago, according to the earnings report released on Friday.
Average revenue per parcel fell 4.3 per cent last year to 9.1 yuan, according to data from the State Post Bureau.
J&T said its own revenue per parcel remained stable in 2023, as it managed to decrease per-parcel delivery costs to US$0.34 from US$0.40 in 2022. It attributed the improved results to “a series of initiatives including strategic acquisition, service offering diversification and streamlined operation”, according to the earnings report.
