Group 1 - On March 19, 14 Hong Kong-listed companies conducted share buybacks, totaling 5.0381 million shares and an amount of 88.7304 million HKD [1] - The company Swire Properties A repurchased 550,000 shares for 38.3268 million HKD, with a highest price of 69.900 HKD and a lowest price of 69.000 HKD, accumulating a total buyback amount of 941 million HKD for the year [1][2] - Samsonite repurchased 1.9161 million shares for 36.3028 million HKD, with a highest price of 19.100 HKD and a lowest price of 18.820 HKD, accumulating a total buyback amount of 234 million HKD for the year [1] - J&T Express-W repurchased 640,000 shares for 3.8959 million HKD, with a highest price of 6.140 HKD and a lowest price of 6.020 HKD, accumulating a total buyback amount of 52.3266 million HKD for the year [1] Group 2 - The highest buyback amount on March 19 was from Swire Properties A at 38.3268 million HKD, followed by Samsonite at 36.3028 million HKD [1] - In terms of share quantity, Samsonite had the highest buyback volume on March 19 with 1.9161 million shares, followed by J&T Express-W with 640,000 shares and Swire Properties A with 550,000 shares [1]

Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company achieved a significant improvement in profitability in 2024, with total revenue reaching USD 10.259 billion, a year-on-year increase of 15.9%, driven by strong global parcel volume growth [8] - Adjusted EBITDA rose to USD 778 million, reflecting a substantial increase of 430.5%, indicating enhanced profitability [8] - The company turned a profit with a net income of USD 114 million in 2024, compared to a loss of USD 1.156 billion in 2023 [8] - The report highlights the continued improvement in domestic business profitability and the ongoing increase in overseas market share [5] Financial Performance Summary - The company’s revenue for 2024 was USD 10.259 billion, with a growth rate of 15.9% [7] - Adjusted EBITDA for 2024 was USD 778 million, showing a significant increase of 430.5% [8] - The net profit for 2024 was USD 114 million, a turnaround from a loss of USD 1.156 billion in 2023 [8] - The operating cash flow for 2024 reached USD 807 million, a year-on-year increase of 136.1% [8] Parcel Volume and Cost Control - The global parcel volume reached 24.65 billion pieces in 2024, a year-on-year increase of 31.0% [8] - The cost per parcel in Southeast Asia decreased from USD 0.67 to USD 0.57, and in China from USD 0.34 to USD 0.30, demonstrating effective cost control [8] - Despite a slight decline in revenue per parcel due to competitive pricing adjustments, overall profitability improved due to cost reductions [8] Regional Performance - Southeast Asia remains the core market with a parcel volume of 4.56 billion pieces and a market share of 28.6% [8] - In China, the parcel volume reached 19.8 billion pieces, with a market share of 11.3%, ranking sixth in the industry [8] - New markets, including the Middle East and South America, saw revenue growth of 76.1% to USD 576 million, indicating successful market expansion efforts [8]

Investment Rating - The report maintains a "Buy" rating for the company [1][5] Core Views - The company achieved a significant improvement in profitability in 2024, with total revenue reaching USD 10.259 billion, a year-on-year increase of 15.9%, driven by strong global parcel volume growth [8] - Adjusted EBITDA rose to USD 778 million, reflecting a substantial increase of 430.5%, indicating enhanced profitability [8] - The company turned a profit with a net income of USD 114 million in 2024, compared to a loss of USD 1.156 billion in 2023 [8] - The report highlights the continued improvement in domestic business profitability and the ongoing increase in overseas market share [5] Financial Performance Summary - The company’s revenue is projected to grow from RMB 63.056 billion in 2023 to RMB 109.376 billion by 2027, with a compound annual growth rate (CAGR) of approximately 13% [7] - The adjusted EBITDA is expected to improve significantly from a loss of RMB 4.107 billion in 2023 to a profit of RMB 11.567 billion by 2027 [7] - The net profit is forecasted to increase from a loss of RMB 7.845 billion in 2023 to RMB 6.341 billion by 2027, representing a growth rate of 240.1% in 2025 [7] - Earnings per share (EPS) are expected to rise from a loss of RMB 0.88 in 2023 to RMB 0.71 by 2027 [7] Market and Operational Insights - The company’s global parcel volume reached 24.65 billion pieces in 2024, marking a year-on-year growth of 31.0% [8] - The Southeast Asia market remains a core area, with parcel volume reaching 4.56 billion pieces and a market share increase to 28.6% [8] - In China, parcel volume reached 19.8 billion pieces, with a market share of 11.3%, ranking sixth in the industry [8] - The company has made strategic price adjustments to expand its market share in Southeast Asia, which has slightly impacted single-ticket revenue but has improved cost efficiency [8]

Investment Rating - The report maintains a "Buy" rating for the company [10]. Core Insights - In 2024, the company's revenue is projected to reach $10.26 billion, representing a year-on-year growth of 15.9%. Adjusted net profit is expected to be $110 million, a significant turnaround from a loss of $1.16 billion in the previous year, marking the first time the company has achieved profitability [2][8]. - The company's market share in Southeast Asia is rapidly increasing, with a 40.8% year-on-year growth in business volume, reaching 4.56 billion parcels. The market share has improved by 3.2 percentage points to 28.6%, solidifying its leading position [10]. - The company is actively adjusting its operational strategies in new markets, leading to a significant increase in per-parcel profit margins [10]. Summary by Sections Southeast Asia Market - Business volume in Southeast Asia is expected to grow by 40.8% to 4.56 billion parcels in 2024, with market share increasing to 28.6%. The per-parcel gross profit remains stable at $0.14, with total gross profit rising by 34.6% to $630 million due to cost reductions in sorting and transportation [10]. China Market - In China, business volume is projected to grow by 29.1% to 19.8 billion parcels in 2024, benefiting from a faster growth rate than the industry average. The per-parcel gross profit is expected to increase by $0.02, resulting in a total gross profit of $420 million [10]. New Markets - Business volume in new markets is anticipated to grow by 22.1% to 28 million parcels, with market share slightly increasing to 6.1%. The per-parcel gross profit is expected to rise by $0.10 to $0.11, driven by a shift towards local non-e-commerce parcels [10]. Profitability and Future Outlook - The company is expected to leverage its unique agency model to capitalize on the global e-commerce trend, enhancing market share and profitability. Projections for net profit are $380 million, $616 million, and $859 million for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 17.7, 11.0, and 7.9 [10][11].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Insights - The company achieved a net profit of $110 million in 2024, marking its first profit after a loss of $1.16 billion in 2023, exceeding expectations [1] - Total revenue for 2024 reached $10.26 billion, a year-on-year increase of 15.9%, with core express service revenue growing by 23.4% to $9.98 billion [1] - The company processed 24.65 billion packages in 2024, a 31% increase year-on-year, and maintained a strong cash flow with $816 million from operating activities [2][1] Summary by Sections Financial Performance - In 2024, the company reported a gross profit of $1.08 billion, up 128% year-on-year, and an adjusted EBITDA of $780 million, a significant increase of 430.5% [1] - The adjusted EBITDA margin improved to 6.7% from 0.6% in 2023, indicating enhanced profitability [5] Market Performance - In Southeast Asia, the company maintained its leading market share at 28.6%, with revenue of $3.22 billion, a 22.3% increase year-on-year [3] - The company processed 4.56 billion packages in Southeast Asia, a 40.8% increase, solidifying its position as the top express operator in the region [3] Operational Efficiency - The company expanded its network to approximately 19,100 outlets and operated 238 transit centers by the end of 2024 [2] - In China, the company achieved an adjusted EBITDA of $430 million, marking its first profitability in this market [5] Future Projections - The company expects to achieve net profits of $398 million, $669 million, and $893 million for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 18.3, 10.9, and 8.2 [12]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.50 HKD [8][9]. Core Insights - The company has achieved a turning point in its performance, moving towards a profitable cycle, with a revenue increase of 15.9% year-on-year to 10.3 billion USD in 2024 and a net profit of 1.0 billion USD, surpassing expectations [1][5]. - The Southeast Asian business is expected to continue benefiting from the increasing penetration of e-commerce, while the Chinese operations are projected to see significant profit growth due to a low base effect [1][2][3]. - The new markets are anticipated to achieve EBITDA breakeven in 2025, following a reduction in losses in 2024 [4]. Summary by Sections Southeast Asia - In 2024, the Southeast Asian segment achieved EBIT of 300 million USD, a year-on-year increase of 48.9%, driven by a 40.8% increase in parcel volume and a market share increase of 3.2 percentage points to 28.6% [2]. - The average revenue per parcel and cost per parcel decreased by 13.2% and 15.1% respectively, leading to a slight decline in gross profit margin [2]. China - The Chinese segment turned profitable in 2024 with EBIT of 150 million USD, compared to a loss of 240 million USD in the previous year, attributed to increased scale and improved capacity utilization [3]. - Parcel volume grew by 29.1%, outpacing the industry growth rate of 21.5%, with a market share increase to 11.3% [3]. New Markets - The new markets (Saudi Arabia, UAE, Mexico, Brazil, and Egypt) reported a reduced loss of 80 million USD in 2024, with a 22.1% increase in parcel volume and a market share increase to 6.1% [4]. - The average revenue per parcel increased by 44.2%, while the cost per parcel rose by 37.5%, resulting in a significant increase in gross profit [4]. Financial Projections - The report maintains net profit forecasts of 350 million USD for 2025 and 650 million USD for 2026, with an additional forecast of 870 million USD for 2027 [5]. - The projected EPS for 2025-2026 is 0.06 USD, with a PE ratio of 16.0x, reflecting the company's higher-than-industry growth rate [5].

Financial Data and Key Metrics Changes - In 2024, the company handled 24.6 billion parcels, a year-on-year increase of 31% [7] - Revenue reached $10.3 billion, marking a year-on-year increase of 16% [7] - Adjusted EBIT was $301 million, a significant turnaround from a loss of $335 million in the previous year [7] - Net profit was $114 million, representing the first full year of profitability in the company's history [7][28] - Total revenue increased by 15.9% year-on-year from $8.8 billion in 2023 to $10.3 billion in 2024 [19] - Adjusted net profit reached $200 million in 2024, a turnaround from an adjusted net loss of $432 million in 2023 [28] Business Line Data and Key Metrics Changes - In China, the company handled 19.8 billion parcels, a year-on-year increase of 29%, with adjusted EBIT reaching $147 million [8][25] - In Southeast Asia, parcel volume increased by 41% to 4.6 billion parcels, with revenue rising by 22.3% to $3.2 billion [12][21] - New markets saw a 22% increase in parcel volume, handling 281 million parcels, with revenue growing by 76.1% to $576 million [15][25] - The cross-border business revenue decreased by 88.7% to $75 million due to a strategic shift to focus on B2B [27] Market Data and Key Metrics Changes - The company's market share in China increased to 11.3%, while in Southeast Asia, it reached 28.6%, marking a 3.2 percentage point increase from 2023 [8][12] - The cumulative parcel volume of China's express delivery industry grew by 21.5% in 2024, indicating a robust market environment [10] Company Strategy and Development Direction - The company aims to solidify its market position in Southeast Asia and China while expanding into new markets [16] - Strategies include reducing costs through refined management, leveraging expertise from China, and enhancing service quality [16] - The company plans to capture changes in business flow due to e-commerce globalization and strengthen its brand [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the express delivery industry but expressed confidence in long-term growth and profitability [17] - The company is committed to continuous self-improvement and maintaining a competitive edge in a challenging market [17] - Management expects to achieve full-year EBITDA breakeven for new markets in 2025 [55] Other Important Information - The company reported a significant improvement in cash flow, with a net cash inflow from operating activities of $807 million in 2024 [28] - Free cash flow turned positive for the first time, reaching $252 million [29] Q&A Session Summary Question: Performance of TikTok Shop in Mexico and expectations for parcel volume growth - Management indicated that TikTok Shop began operations in Mexico in February 2025, and the performance is still in early stages [32] - The company expects meaningful contributions to parcel volume growth in new markets as operations develop [32] Question: Expectations for domestic parcel volume growth and competition in 2025 - The company reported a 29% year-on-year increase in parcel volume in China, with expectations to maintain growth despite competition [33] Question: Specific measures for cost reduction in China and future expectations - Management highlighted improvements in operational efficiency and cost optimization measures, with expectations for further reductions [36] Question: Competitive trends in the return parcel market - Management noted that return services have higher profitability than normal delivery services, and competition is expected to increase [38] Question: Business strategy in Southeast Asia and price trends - The company aims to increase market share and expects unit prices to decrease by 5% to 10% annually over the next few years [44] Question: Cash flow position and pressures from debt repayment - The company maintains a strong cash position with sufficient cash equivalents to cover interest-bearing debt, with no near-term repayment pressures [47] Question: Updates on new markets and potential opportunities - Management is optimistic about achieving breakeven in new markets by 2025 and is exploring opportunities in Latin America and the Middle East [55] Question: Year-on-year volume growth in Southeast Asia and major volume drivers - The company expects a parcel volume growth of 20% to 30% in Southeast Asia for 2025, with strong growth observed in the first two months [59] Question: CapEx adjustments in Southeast Asia - The company plans to continue investing in Southeast Asia to solidify its market leadership and capture growth opportunities [63]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of $10,259.1 million, a 15.9% increase from $8,849.3 million in 2023[5]. - The gross profit for the same period was $1,078.2 million, representing a significant increase of 128.0% compared to $472.8 million in the previous year[5]. - The adjusted EBITDA reached $778.3 million, up 430.5% from $146.7 million in 2023[5]. - The adjusted net profit for the year was $113.7 million, a significant recovery from a loss of $1,156.4 million in the previous year[5]. - The company reported a net profit attributable to shareholders of $100.6 million for 2024, a recovery from a net loss of $1,100.99 million in 2023[185]. - Basic earnings per share for 2024 were $1.2, compared to a loss of $26.3 per share in 2023, reflecting a positive turnaround in profitability[185]. Revenue Growth - The Southeast Asia segment generated revenue of $3,220.9 million in 2024, up from $2,633.4 million in 2023, indicating strong growth in this region[104]. - The China segment's revenue increased from $5,229.3 million in 2023 to $6,388.1 million in 2024, showcasing robust performance in the Chinese market[104]. - New market revenue grew by 76.1% from $326.8 million in 2023 to $575.6 million in 2024, with parcel volume increasing by 22.1%[118]. - Express service revenue grew by 23.4% from $8,086.8 million in 2023 to $9,980.3 million in 2024, primarily due to increased service revenue from the growth in express business[111]. Package Volume and Market Share - The company processed a total of 24.65 billion packages in 2024, a 31.0% increase from 18.81 billion packages in 2023[10]. - The total package volume in Southeast Asia reached 4.5632 billion in 2024, compared to 3.2400 billion in 2023, marking a year-on-year growth of 40.8%[38]. - In China, the company processed 19.8012 billion packages in 2024, a 29.1% increase from 15.3414 billion packages in 2023[34]. - The company's market share in Southeast Asia increased to 28.6% in 2024 from 25.4% in 2023[10]. - The company's market share in China increased to 11.3% in 2024, up from 10.6% in 2023, reflecting a 0.7 percentage point gain[47]. Cost Management and Efficiency - The average cost per package in Southeast Asia decreased from $0.67 in 2023 to $0.57 in 2024, demonstrating effective cost management strategies[44]. - The single ticket cost has decreased from $0.34 in 2023 to $0.30 in 2024, reflecting ongoing operational optimization[54]. - The overall single-piece cost in China decreased from $0.34 in 2023 to $0.30 in 2024, due to ongoing operational optimization[124]. - The company achieved a gross profit margin improvement from 5.3% in 2023 to 10.5% in 2024, with total gross profit rising from $472.8 million to $1,078.2 million[138]. Operational Improvements - The average delivery time for packages in Southeast Asia decreased by 10.5% in 2024 compared to 2023, reflecting improved operational efficiency[42]. - The company processed over 24.0 million packages in a single day during the 2024 Double Twelve shopping festival, showcasing its strong logistics network and capacity flexibility[42]. - The company aims to enhance service quality and customer satisfaction by reducing average delivery times and increasing the proportion of same-day and next-day deliveries[52]. - The company has established an intelligent route planning and resource management system, optimizing transportation routes to reduce costs and improve efficiency[81]. Market Expansion and Strategy - The company plans to continue expanding its market presence in new regions, including Saudi Arabia, UAE, Mexico, Brazil, and Egypt[8]. - The company is actively expanding its non-e-commerce customer base, including social media businesses and enterprises, which are expected to contribute higher pricing and profitability[101]. - The company is focusing on building strong partnerships with global e-commerce platforms to capitalize on the growth of cross-border e-commerce logistics[98]. - The company aims to enhance its network coverage and capacity by investing in transit center facilities and increasing the number of vehicles to meet rising market demands[95]. Technology and Innovation - The company is investing heavily in automation equipment and AI route planning technology to reduce operational costs and improve efficiency in the collection and delivery process[77]. - The "Hello Boss" application has achieved over 90% coverage in China, with plans to expand into Southeast Asia, significantly enhancing end-point digitalization and operational efficiency[76]. - The company has developed a proprietary address digitization platform, significantly improving address analysis accuracy and reducing misdelivery rates, particularly in Southeast Asia[83]. - The company is exploring the application of cutting-edge technologies such as unmanned vehicles and drones in the collection and delivery process[77]. Financial Position and Liabilities - Total liabilities increased to $4,771,958 thousand in 2024 from $4,121,815 thousand in 2023, indicating a rise in financial obligations[169]. - The group's debt-to-asset ratio as of December 31, 2024, is 65.4%, up from 62.4% in 2023[155]. - Cash generated from operating activities in 2024 is $807.4 million, compared to $342.0 million in 2023, indicating improved cash flow management[154]. - As of December 31, 2024, the group's cash and cash equivalents total $1,596.9 million, with total borrowings under current liabilities amounting to $262.6 million[154].

Company Repurchase Activity - The company has conducted share repurchases for 4 consecutive days since December 27, 2024, totaling 3.93 million shares with a cumulative repurchase amount of HKD 23.82 million [1] - On January 2, the company repurchased 1.03 million shares at a price range of HKD 5.91 to HKD 6.01 per share, amounting to HKD 6.13 million [2] Stock Performance - The stock closed at HKD 5.86 on the day of the latest repurchase, representing a 4.40% decline [1] - The stock's trading volume for the day reached HKD 68.40 million [1] - During the repurchase period, the stock experienced a cumulative decline of 6.24% [3]

Revenue and Profit Growth - Revenue for the first half of 2024 reached $4.86 billion, a 20.6% increase compared to $4.03 billion in the same period of 2023[9] - Express service revenue grew by 33.7% to $4.74 billion in H1 2024, up from $3.55 billion in H1 2023[9] - Gross profit surged by 176.8% to $535.7 million in H1 2024, compared to $193.5 million in H1 2023[9] - Adjusted EBITDA increased by 795.6% to $350.8 million in H1 2024, up from $39.2 million in H1 2023[9] - Operating profit turned positive at $115.0 million in H1 2024, compared to a loss of $1.64 billion in H1 2023[9] - Net cash from operating activities increased significantly to $345.6 million in H1 2024, up from $2.8 million in H1 2023[9] - Revenue increased to $4,861.7 million in H1 2024 from $4,030.4 million in H1 2023, with gross profit rising to $535.7 million from $193.5 million[36] - Operating profit improved to $115.0 million in H1 2024 from a loss of $1,636.2 million in H1 2023, reflecting significant operational improvements[36] - Adjusted EBITDA surged to $350.8 million in H1 2024 from $39.2 million in H1 2023, indicating strong financial recovery[36] - Total revenue increased by 20.6% from $4,030.4 million in the first half of 2023 to $4,861.7 million in the first half of 2024, primarily driven by growth in express delivery services across 13 countries[39] - Express delivery service revenue grew by 33.7% from $3,546.2 million in the first half of 2023 to $4,740.0 million in the first half of 2024, with parcel volume increasing by 38.3% from 7.97 billion to 11.01 billion pieces[40] - Revenue for the first half of 2024 increased to $4,861.7 million, up 20.6% compared to $4,030.4 million in the same period of 2023[108] - Gross profit surged to $535.7 million in H1 2024, a significant increase from $193.5 million in H1 2023[108] - Operating profit improved to $115.0 million in H1 2024, compared to an operating loss of $1,636.2 million in H1 2023[108] - Net profit for H1 2024 was $31.0 million, a turnaround from a net loss of $666.8 million in H1 2023[108] - Basic earnings per share for H1 2024 were $0.003, compared to a loss per share of $0.208 in H1 2023[108] - The company's comprehensive loss for H1 2024 was $40.6 million, an improvement from $676.6 million in H1 2023[109] - The company's profit attributable to owners for the six months ended June 30, 2024, was $27.589 million, a significant improvement from a loss of $1.670 billion in the same period in 2023[155] Parcel Volume and Market Share - The company handled 11.01 billion parcels in H1 2024, a 38.3% increase from 7.97 billion parcels in H1 2023[13] - Southeast Asia parcel volume grew by 42.0% to 2.04 billion parcels in H1 2024, with a market share of 27.4%[12][14] - China parcel volume increased by 37.1% to 8.84 billion parcels in H1 2024, capturing an 11.0% market share[12][14] - New markets parcel volume surged by 63.9% to 136.3 million parcels in H1 2024, with a 6.1% market share[12][14] - Company's market share in Southeast Asia increased to 27.4% in H1 2024, up 2.0 percentage points from 25.4% in 2023[15] - Company's market share in China rose to 11.0% in H1 2024, up 1.1 percentage points from 9.9% in H1 2023[15] - Company's market share in new markets reached 6.1% in H1 2024, up 0.1 percentage points from 6.0% in 2023[15] - Southeast Asia's total parcel volume is projected to reach 14.93 billion in 2024, up 17.1% from 2023[16] - Company processed 2.04 billion parcels in Southeast Asia in H1 2024, a 42.0% increase from 1.44 billion in H1 2023[20] - Southeast Asia's daily parcel volume reached 11.2 million in H1 2024, a 42.0% YoY increase[23] - China's e-commerce retail sales grew 8.8% YoY to RMB 6.0 trillion in H1 2024, with express delivery volume increasing 23.1% YoY to 80.16 billion parcels[25] - The company's market share in China increased to 11.0% in H1 2024, up 1.1 percentage points YoY, ranking 6th among express operators[26] - China's parcel volume grew 37.1% YoY to 8.84 billion in H1 2024, outperforming the industry growth rate[27] - The company's parcel volume in new markets grew 63.9% YoY to 136.3 million in H1 2024, with market share increasing from 6.0% to 6.1%[33] Operational Efficiency and Cost Management - Company's single-ticket cost in Southeast Asia decreased by 15.5% year-over-year in H1 2024[21] - Southeast Asia's average delivery time decreased by 13.8% YoY in H1 2024, with loss and damage rates also declining[22] - China's single-ticket cost decreased from $0.34 in H1 2023 to $0.32 in H1 2024[28] - Single-ticket express revenue remained stable at $0.34 in H1 2024, unchanged from H1 2023, driven by optimized e-commerce platform parcel structure and improved product categories[30] - Single-ticket express cost decreased from $0.34 in H1 2023 to $0.32 in H1 2024, a significant reduction due to scale effects and refined operational management[30] - Southeast Asia's per-parcel cost decreased from $0.71 in H1 2023 to $0.60 in H1 2024, driven by a 42.0% YoY increase in parcel volume and operational optimization leveraging China's experience[48] - The number of Southeast Asia outlets reached 10,600 as of June 30, 2024, with 2,000 network partners, and per-parcel pickup and delivery costs decreased from $0.40 to $0.37[48] - Southeast Asia's transportation fleet grew to 3,800 vehicles (1,500 self-owned) as of June 30, 2024, with per-parcel transportation costs decreasing from $0.19 to $0.16[48] - Southeast Asia's sorting centers decreased to 119 as of June 30, 2024, with 47 automated sorting systems, and per-parcel sorting costs decreased from $0.09 to $0.06[49] - China's per-parcel revenue remained stable at $0.34 in H1 2024, while per-parcel costs decreased from $0.34 to $0.32 through operational optimization[50][51] - China's transportation fleet exceeded 5,900 vehicles (4,200 self-owned) as of June 30, 2024, with per-parcel transportation costs decreasing from $0.08 to $0.07[52] - China's sorting centers totaled 83 as of June 30, 2024, with 6 new automated sorting lines added in H1 2024, reducing per-parcel sorting costs from $0.06 to $0.05[52] - New markets' per-parcel revenue increased from $1.60 in H1 2023 to $2.14 in H1 2024, while per-parcel costs remained flat at $1.88[53][54] - Total operating costs and expenses decreased by 15.9% from $5,623.6 million in the first half of 2023 to $4,731.2 million in the first half of 2024, primarily due to a significant reduction in share-based payments and expenses from $1,426.9 million to $32.2 million[56] - Fulfillment costs increased by 29.9% from $1,790.8 million in the first half of 2023 to $2,326.5 million in the first half of 2024, driven by network expansion and increased parcel volume[57] - Employee costs rose by 23.3% from $540.0 million in the first half of 2023 to $665.7 million in the first half of 2024, mainly due to increased headcount and higher average wages[57] - Other labor costs increased by 39.1% from $213.3 million in the first half of 2023 to $296.7 million in the first half of 2024, reflecting higher parcel volume[58] - Southeast Asia's costs grew by 20.2% from $1,026.0 million in the first half of 2023 to $1,232.7 million in the first half of 2024, driven by a 42.0% increase in parcel volume[59] - China's costs increased by 25.4% from $2,220.2 million in the first half of 2023 to $2,784.4 million in the first half of 2024, with parcel volume rising by 37.1%[60] - New markets' costs surged by 64.2% from $156.2 million in the first half of 2023 to $256.6 million in the first half of 2024, supported by a 63.9% increase in parcel volume[60] - Gross margin improved from 4.8% in the first half of 2023 to 11.0% in the first half of 2024, with significant improvements in China and new markets[61] - Sales, general, and administrative expenses decreased by 78.4% from $1,767.9 million in the first half of 2023 to $381.7 million in the first half of 2024, largely due to reduced share-based payments[64] - Southeast Asia: Adjusted EBITDA increased by 12.9% from $184.1 million in the first half of 2023 to $207.8 million in the first half of 2024, with adjusted EBITDA margins of 14.8% and 13.7% respectively[66] - China: Adjusted EBITDA turned from a loss of $45.0 million in the first half of 2023 to a profit of $198.9 million in the first half of 2024, with adjusted EBITDA margins improving from -2.0% to 6.6%[66] - Cross-border: Adjusted EBITDA loss narrowed from $11.3 million in the first half of 2023 to $7.2 million in the first half of 2024[67] - New markets: Adjusted EBITDA loss significantly improved from $55.2 million in the first half of 2023 to $7.8 million in the first half of 2024, with the adjusted EBITDA margin improving from -41.6% to -2.7%[67] - Financial costs: Total financial costs remained stable at $45.0 million in the first half of 2024 compared to $44.6 million in the first half of 2023, primarily due to interest expenses on borrowings[68] - Other income: Total other income decreased to $3.1 million in the first half of 2024 from $12.2 million in the first half of 2023, mainly due to changes in subsidy policies[69] - Cash flow: Operating cash flow significantly increased to $345.6 million in the first half of 2024 from $2.8 million in the first half of 2023, with cash and cash equivalents totaling $1,428.2 million as of June 30, 2024[71] - Capital expenditure: Total capital expenditure decreased to $165.2 million in the first half of 2024 from $250.6 million in the first half of 2023[73] - Capital commitments: Total capital commitments decreased to $111.8 million as of June 30, 2024, from $134.9 million as of December 31, 2023[74] - The company has 152,145 full-time employees as of June 30, 2024, with competitive compensation packages based on qualifications, expertise, and experience[76] - The company invested approximately $457.0 million in Huisen Global Limited's convertible bonds in 2022, with an additional $58.0 million investment in May 2023[76] - As of June 30, 2024, the fair value of the convertible bonds held in Huisen Global Limited is approximately $484.9 million, representing 7.3% of the company's total assets[76] - The company recognized a fair value change income of approximately $1.4 million from the Huisen Global Limited investment in the first half of 2024[76] - The company has pledged restricted deposits of $31.2 million as collateral as of June 30, 2024[77] - Huisen Global Limited, in which the company holds significant investment, is focusing on expanding overseas markets while maintaining a stable presence in China[78] - As of June 30, 2024, the company has no significant investment or capital asset plans[78] - The company has no significant contingent liabilities as of June 30, 2024[79] - Li Jie holds approximately 11.11% of the company's issued shares through controlled entities[81] - Tencent Holdings Limited holds approximately 6.81% of the company's issued shares through controlled entities[84] - Li Jie holds 979,333,410 Class A shares, representing approximately 55.56% of the total voting rights for non-reserved matters[90] - Tencent holds a total of 533,278,240 Class B shares through its subsidiaries[86] - Boyu Capital Fund IV, L.P. and related entities hold a total of 460,820,640 Class B shares[87] - The 2024 Share Incentive Plan has an authorized limit of 881,216,623 shares available for grant[89] - The company has a dual-class share structure with Class A shares having 10 votes per share and Class B shares having 1 vote per share[90] - Conversion of all Class A shares to Class B shares would result in 979,333,410 Class B shares, representing approximately 12.50% of total Class B shares[91] - The Pre-IPO Share Incentive Plan involved the issuance of 38,000,000 Class A shares to NP Investment Platform Limited[88] - Guangdong Oujia Holdings Co., Ltd. holds approximately 65.9% of Team Spirit Group Limited, which owns 373,175,910 Class B shares[85] - The company's global offering raised a net amount of HKD 3,553.50 million, with 30% (HKD 1,066.05 million) allocated to expanding logistics networks, 30% (HKD 1,066.05 million) for entering new markets, 30% (HKD 1,066.05 million) for R&D and technological innovation, and 10% (HKD 355.35 million) for general corporate purposes and working capital[96] - As of June 30, 2024, the company had utilized USD 286.5 million of the net proceeds, with USD 58.0 million spent on logistics network expansion, USD 83.0 million on service expansion, USD 129.0 million on R&D and technological innovation, and USD 16.5 million on general corporate purposes[97] - The company plans to fully utilize the remaining net proceeds by the end of 2027[97] - The company has appointed Shang Quanxi and Zheng Chengjie as joint company secretaries, with an exemption granted by the Stock Exchange for Shang Quanxi's qualification, valid for three years from her appointment date[94] - The company's board of directors has deviated from the Corporate Governance Code by having Mr. Li Jie serve as both Chairman and CEO, citing his extensive experience and the need for consistent leadership[93] - The company has established an audit committee, corporate governance committee, nomination committee, and remuneration committee to oversee governance and financial matters[101] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period and holds no treasury shares as of June 30, 2024[98] - The company has confirmed that all directors complied with the standard code for securities transactions during the reporting period, with no violations detected[95] - The company secured a financing agreement with a total facility of up to $674.0 million in USD, HKD 1,362.0 million, and RMB 2,871.4 million[103] - The financing agreement has a term of 36 months from the date of the first drawdown[103] - The company did not declare an interim dividend for the period ending June 30, 2024[103] - The company's financial costs increased to $62.2 million in H1 2024, up from $56.0 million in H1 2023[108] - Total assets increased to $6,653,998 thousand as of June 30, 2024, compared to $6,601,414 thousand at the end of 2023[110] - Non-current assets decreased to $3,277,133 thousand from $3,464,108 thousand, primarily due to a reduction in intangible assets and investment properties[110] - Current assets rose to $3,376,865 thousand, up from $3,137,306 thousand, driven by an increase in cash and cash equivalents and prepayments[110] - Total liabilities increased to $4