FAST NEWS: J&T’s loss narrows on strong Southeast Asia business

The latest: Logistics provider J&T Global Express Ltd. (1519.HK) announced Friday its non-GAAP adjusted loss last year narrowed 71% to 432 million yuan ($60 million).

Looking up: J&T‘s revenue grew 21.8% to 8.85 billion yuan last year, mainly due to higher turnover from China, Southeast Asia and other new markets. It delivered 3.24 billion parcels in Southeast Asia last year, where it ranked first in the industry with 25.4% market share.

Take Note: The company recorded a net loss of 1.16 billion yuan last year, reversing its net profit of 1.57 billion yuan in 2022, due to changes in the fair value of its convertible preferred stock and share-based expenses related to equity transactions.

Digging Deeper: Founded in 2015, J&T became known as a disruptor in China’s express delivery industry after it touched off a price war by offering to ship packages for as little as 0.8 yuan per parcel in 2021. The company went through nine rounds of financing before its Hong Kong IPO, with Tencent (0700.HK), Boyu Capital, Hillhouse Capital, Sequoia Capital and CMB International as some of its backers. It even found a fan among its rivals, winning over SF Express (002352.SZ) as an investor. The company listed on the Hong Kong Stock Exchange in October last year, raising HK$3.53 billion ($452 million).

Market Reaction: J&T’s shares fell on Monday and closed down 1.1% at HK$11.3 by the midday break. The stock now trades 5.8% lower than its IPO price of HK$12.

Translation by A. Au

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