Financial Data and Key Metrics Changes - The company's parcel volume reached 13.99 billion parcels, a year-on-year increase of 27% [7] - Revenue increased to $5.5 billion, representing a year-on-year growth of 13% [19] - Adjusted net profit rose to $156 million, a significant year-on-year increase of 147% [27] - Gross profit margin declined from 11% to 9.8% due to competitive pressures in the Chinese market [19] Business Line Data and Key Metrics Changes - In Southeast Asia, parcel volume reached 3.23 billion parcels, a year-on-year increase of 58%, with revenue growing by 29.6% to $2 billion [8][20] - In China, parcel volume increased to 10.6 billion parcels, a year-on-year growth of 20%, but revenue per parcel decreased from $0.34 to $0.30 [11][23] - New markets saw parcel volume reach 170 million parcels, a year-on-year increase of 22%, achieving positive EBITDA for the first time [14][25] Market Data and Key Metrics Changes - Southeast Asia's market share increased to 32.8%, up by 5.4 percentage points year-on-year [8] - The Chinese market's share rose slightly to 11.1%, with revenue growing by 4.6% to $3.1 billion [11][23] - New markets accounted for a significant turnaround, with revenue increasing by 24.3% year-on-year [25] Company Strategy and Development Direction - The company focuses on continuous cost reduction and developing non-ecommerce platform customers to enhance profitability [9][11] - Plans to replicate cost reduction strategies from China to Southeast Asia and new markets [15] - Emphasis on investing in network capacity and automation to improve operational efficiency [25][92] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from geopolitical conflicts and trade uncertainties but highlighted resilience and growth in Southeast Asia [6] - The company is optimistic about future growth in Latin America, expecting it to become a key growth engine [15][36] - Management noted the importance of adapting to market conditions and maintaining competitive pricing strategies [34][50] Other Important Information - The company achieved a strong cash flow, with net cash flow from operating activities amounting to $421 million [28] - Total cash and cash equivalents reached $1.7 billion as of June 30, 2025 [29] Q&A Session Summary Question: Impact of domestic policy on earnings and performance in Latin America - Management noted price recovery in certain provinces due to anti-involution policies, which may improve earnings [33] - The Latin American market is expected to grow further, supported by partnerships with key players like TikTok and MercadoLibre [36] Question: Update on non-ecommerce platform businesses and operational capacity in Southeast Asia - Non-ecommerce business is growing but at a slower rate than ecommerce parcels; it currently accounts for less than 10% of total parcels [41] - Capacity in Southeast Asia is sufficient to handle current volume growth, with plans for continued investment in capacity [45] Question: Cost reduction potential and market share expansion in Southeast Asia - The company aims to reduce costs further and improve efficiencies through various strategies [50] - Southeast Asia's e-commerce market is expected to grow significantly, and the company plans to enhance its market share [57] Question: Unit economics guidance and franchise model adoption - The company maintains stable EBIT per parcel and aims to balance growth with pricing strategies [70] - The franchise model is being implemented across Southeast Asia, with 30% of the network run by partners [74] Question: Cooperation with MercadoLibre and AI technologies - Collaboration with MercadoLibre is progressing well, with significant potential for growth [88] - The company is piloting autonomous delivery vehicles and deploying automated sorting equipment to enhance efficiency [90][92]
J&T EXPRESS(01519) - 2025 Q2 - Earnings Call Transcript