Core Insights - The global e-commerce competition and volatility are creating new variables for companies providing logistics and infrastructure services [1] - Jitu Express reported strong growth in global business volume, with daily package volume reaching 83.4 million, a year-on-year increase of 23.1% [1] - The Southeast Asian market showed exceptional performance, with package volume reaching 1.9968 billion, a staggering year-on-year increase of 78.7%, significantly exceeding the company's previous growth guidance of 55% [1][8] Southeast Asia Market Performance - Jitu's management indicated that the introduction of free shipping policies by e-commerce platforms like Shopee is driving growth in Southeast Asia, similar to trends seen in China years ago [3] - The company is expected to benefit as smaller suppliers unable to meet quality and cost requirements exit the market, enhancing Jitu's growth prospects in the region [3][8] - The Southeast Asian market's e-commerce penetration remains low, providing further growth opportunities for Jitu [8] China Market Strategy - In China, Jitu's package volume reached 5.5758 billion in Q3, a year-on-year increase of 10.4%, aligning with industry growth [4] - The company is shifting its strategy to focus on high-margin, price-insensitive mid-to-high-end customers, which may result in growth rates slightly below industry averages [6][5] - The recent collective price increase in the Chinese express delivery industry has raised Jitu's per-package revenue, but also introduced cost pressures [4][6] Operational Adjustments - Jitu is optimizing its network in China, reducing the number of partners and outlets to enhance operational efficiency [6][7] - The company aims to improve the profitability of its franchisees as a key strategy for sustainable operations in the Chinese market [5] New Market Developments - Jitu's new markets, including Saudi Arabia, UAE, Mexico, Brazil, and Egypt, saw a package volume increase of 47.9% in Q3, with a total of 10.42 million packages [9] - However, challenges in the Mexican market due to increased tariffs are expected to impact Jitu's business in the fourth quarter [9]