Core Viewpoint - Zhongtong Express is accelerating its air freight layout to address declining market share and slowing revenue growth, transitioning from an agency model to a self-operated system, which poses higher operational and cost control demands [1][2][3] Group 1: Air Freight Business Transition - Zhongtong Airlines has completed its registration with a capital of 600 million yuan, focusing on public air transport and logistics services [2] - The establishment of a domestic cargo airline is a key part of Zhongtong's full industry chain layout, with plans to invest 11 billion yuan in the cargo airline project [2][3] - The shift to a self-operated air freight model aims to enhance route planning and transportation efficiency but comes with significant operational challenges, including high costs for aircraft procurement and maintenance [3] Group 2: Market Share and Revenue Trends - In 2024, Zhongtong's single ticket revenue increased by 2.7% to 1.28 yuan, making it the only company in its sector to see an increase, despite a decline in market share [4][5] - The company's market share fell to 19.4% in 2024, a decrease of 3.5 percentage points, marking the first time it dropped below 20% since 2020 [5] - In Q1 2025, Zhongtong's single ticket revenue decreased by 8.46% to 1.19 yuan, while its business volume grew by 19.1% to 85.39 billion pieces, still lagging behind competitors [5][8] Group 3: Expansion into Parcel Market - Zhongtong is actively expanding its parcel business, reporting a 46% year-on-year increase in parcel volume, with a goal of reaching 8.4 million parcels per day by 2025 [9][10] - The parcel market offers higher profit margins compared to traditional e-commerce deliveries, but it is becoming increasingly competitive, leading to price wars [10] - Challenges in the parcel market include the presence of "scalpers" who negotiate lower prices, further squeezing profit margins for legitimate operators [10]

Core Viewpoint - Zhongtong Airlines has officially registered in Changsha, marking the establishment of Hunan's first local cargo airline, which aims to enhance regional economic development and fill a gap in the cargo aviation sector [2][4]. Group 1: Company Developments - Zhongtong Airlines has a registered capital of 600 million yuan and is wholly owned by Zhongtong Express [2]. - The company plans to invest 11 billion yuan in a project that will cover approximately 750 acres, creating an integrated ecosystem for logistics, e-commerce, and financial services [4]. - The establishment of Zhongtong Airlines is a key part of Zhongtong's full industry chain layout, aimed at improving operational efficiency and service stability [2][3]. Group 2: Market Context - The express delivery market is becoming increasingly competitive, with Zhongtong's market share expected to decline in 2024, and its net profit being surpassed by SF Express [2][5]. - In 2024, the global air cargo demand is projected to grow by approximately 11.3%, with the Asia-Pacific region leading at a growth rate of 14.5% [5]. - Other logistics companies, including SF Express and JD Logistics, have already established their own airlines, intensifying competition in the sector [6]. Group 3: Financial Performance - In 2024, Zhongtong's package volume growth slowed to 12.6%, the lowest among major express companies, reflecting a broader trend of deceleration in the industry [5][6]. - The company recorded a net profit of 8.888 billion yuan in 2024, marking a decline in profitability compared to previous years [5][6]. - In the first quarter of 2025, Zhongtong achieved a package volume of 8.5 billion, a year-on-year increase of 19.1%, indicating a potential recovery in growth [7].