Fintech PR

J&T Express Releases 2023 Results: J&T Express Continues to Lead Southeast Asia with No. 1 Market Share for Fourth Straight Year and Secures First Profit in China

Published

8 months ago

March 22, 2024

HONG KONG, March 22, 2024 /PRNewswire/ — J&T Global Express Limited (‘J&T Express’ or ‘J&T’ or ‘the Company’, stock code: 01519), a global logistics service provider, has announced its 2023 results. In the past year, J&T Express achieved significant growth, expanded its business volume, and improved operational efficiency and service quality.

As a global logistics service provider, J&T Express operates in 13 countries across Southeast Asia, China, the Middle East, North Africa, and Latin America. In 2023, the Company experienced growth in market share and revenues in Southeast Asia, China, and New Markets compared to the previous year. J&T Express was ranked first in terms of parcel volume in Southeast Asia for the fourth consecutive year. As a result of the exponential growth in these markets, the Company’s total revenue for the full year of 2023 reached US$8.85 billion, an approximately 22% year-on-year increase from US$7.27 billion in 2022. The total number of parcels handled for the year was 18.8 billion, a 29% increase from 14.59 billion in 2022.

Furthermore, J&T Express demonstrated significant improvements in operational efficiency and profitability. For the first time since its launch, the Company achieved a positive full-year gross profit of US$473 million. Additionally, the Company achieved positive adjusted Earnings Before Tax, Interest, Depreciation, and Amortization (EBITDA) for the first time, reaching US$147 million, while both the gross margin and adjusted EBITDA in the China market also showed positive results for the first time. Moreover, the Company’s adjusted net loss narrowed by 71% to US$432 million in 2023. In the past year, the Company’s cash flow turned positive, with operating activities generating US$342 million, representing a significant improvement compared to 2022. As of December 31, 2023, the Company’s cash and cash equivalents amounted to US$1,483 million.

Steven Fan, Executive President of J&T Express, stated, “Despite facing multiple challenges from the macro-environment and increasingly fierce market competition, we capitalized on the rapid development of e-commerce across the various markets. Leveraging our extensive network of logistics outlets, continuous improvement in operational efficiency and service quality, and the unwavering dedication of our employees, we achieved significant milestones in 2023. We not only reinforced our leading position in Southeast Asia, but also achieved a breakthrough in profitability in our China business and registered rapid growth in emerging markets. Additionally, we became a public-listed company in Hong Kong, marking the beginning of a new chapter in our journey.”

“In 2024, we are committed to further improving our market share, deepening our cooperation with e-commerce platforms, strengthening our infrastructure, enhancing operational efficiency, and increasing investment in technological innovation and sustainable development. ‘Together For a Brighter Future’ remains our unwavering slogan, and the management team will work together with all employees to continuously create value for our customers, shareholders, and society.”

Dylan Tey, Chief Financial Officer of J&T Express, commented, “In 2023, the Company demonstrated exceptional performance with significant revenue growth, improved profitability, increased cash flow, and a strengthened financial position. Looking ahead, the compound annual growth rate of global e-commerce retail transaction volume is expected to reach 9% from 2024 to 2028. Notably, the growth rate of e-commerce business in each of the 13 markets where we operate has surpassed this global average. We will proactively capitalize on this significant market opportunity by developing targeted market strategies that leverage our strengths and market positions in each location, aiming to maximize growth, deliver more significant returns, and generate robust shareholder value.”

01
Increased Southeast Asia Market Share and Enhanced Profit Stability

In Southeast Asia, J&T Express maintained a market share of 25.4% in 2023 in terms of parcel volume, a 2.9% increase from 22.5% in 2022, securing the top spot for the fourth consecutive year. The Company handled a total of 3.24 billion parcels, representing a year-on-year increase of 28.9% and achieved a full-year revenue of US$2.63 billion, up 10.56% compared to the previous year.

J&T Express has fostered strong relationships with several e-commerce platforms in Southeast Asia, empowering its partners in various ways. For instance, the Company provides e-commerce partners with a vast network carrying capacity to address peak season delivery challenges by offering express services in Indonesia, Malaysia, Vietnam, the Philippines, Thailand, among others. On 2023 “Double 12”, the Company successfully handled a peak of over 16 million parcels per day in Southeast Asia.

The express industry benefits from significant economies of scale, and the substantial growth in parcel volume has further enhanced the efficiency in the utilization of key infrastructure and resources, such as transshipment centers, outlets and vehicles. In 2023, the Company’s average cost per parcel in Southeast Asia has steadily declined from US$0.76 in 2022 to US$0.67 in 2023.

In 2023, our average delivery time for parcels in Southeast Asia was shortened by 6.5% year-on-year, while the complaint rate continued to decline as well. By virtue of our outstanding service quality, the Company further expanded its customer base and gained widespread recognition from the local community.

02
Breakthrough in China Market with Positive Profitability

In China, the Company successfully expanded market share and further improved its profitability and service quality through a series of initiatives including strategic acquisition, service offering diversification and streamlined operation.

In terms of parcel volume, our market share in China stood at 11.6% in 2023, an increase of 0.7 percentage points compared to 2022. In 2023, our parcel volume in China increased by 27.6% year-on-year to 15.34 billion, outpacing industry average. Our full-year revenue increased by 27.7% year-on-year to US$5.23 billion in 2023.

In the China market, J&T Express achieved a significant milestone in 2023 by yielding a positive gross profit and adjusted EBITDA for the first time. Despite the fierce competition and escalating price war in China’s express delivery industry in 2023, the Company’s per-parcel revenue remained stable compared to the previous year, attributed to the optimization of volume mix across different e-commerce platforms, acquisition of high-quality customers and increase in the proportion of return delivery and bulk shipments. Additionally, due to the economies of scale brought by volume growth and streamlined operational management, our per-parcel delivery cost continued to decline, dropping from US$0.40 in 2022 to US$0.34 in 2023.

The Company continuously improves its service quality and maintains a high level of satisfaction in various logistics services opinion surveys. According to the data disclosed by the State Post Bureau, the Company’s average complaint rate in 2023 was 0.54, the lowest among China’s major express operators and much lower than the industry’s average of 4.45; the Company’s score for complaint handling in 2023 was 99.43, ranking J&T Express as No. 1 among China’s major express operators and higher than the industry’s average of 97.09.

03
Expansion into New Markets and Emerging Economies

In the New Markets, the Company has deepened its cooperation with major e-commerce platforms and continued to improve local network infrastructure. The significant growth in parcel volume handled by the Company has made J&T Express another strong competitor alongside local operators and international logistics giants.

Since setting foot in the Middle East, North Africa, and Latin America in 2022, the Company has continued to improve and strengthen local infrastructure to improve regional network coverage. Network coverage rate in these markets has exceeded 95%.

In terms of parcel volume, the Company was ranked top five in Brazil, Mexico, Saudi Arabia, and Egypt in 2023. The Company’s market share in the New Markets increased from 1.6% in 2022 to 6.0% in 2023. The total parcel volume reached 230 million, representing a remarkable year-on-year growth of 369.0%. The Company’s full-year revenue also witnessed a spike of 299.7% to US$327 million in 2023.

Throughout the year, the Company continued to develop and deepen its partnerships with both cross-border and local e-commerce platforms and provided one-stop logistics solutions, from customs clearance to last mile delivery, to meet the needs of specific market, capitalizing on its well-established infrastructure and extensive network coverage. Additionally, the Company has invested in upgrading transshipment centers, expanding fleet of long-haul vehicles, and establishing new outlets to further enhance its network capacity, thereby meeting the ever-increasing market demands.

04
Ride on the E-Commerce Boom

In the face of flourishing market opportunities presented by the e-commerce industry, the Company, as an independent e-commerce enabler is committed to continuously investing and enhancing its overall capabilities to seize the historic opportunities brought by the industry’s rapid expansion.

In Southeast Asia, the Company strives to increase its market share and enhance its leading position by providing high-quality services at competitive prices. In China, our focus will be on further uplifting service quality and brand image to reach a broader base of high-quality customers. In New Markets, we will place greater emphasis on high-growth potential regions such as the Middle East and Latin America, as the Company aims to seize the historic opportunity of Chinese e-commerce platforms expanding internationally while deepening local capabilities.

The Company will provide customized services to cater to the diverse needs of platforms, enabling them to reduce fulfillment costs through competitive pricing. Additionally, the Company will continue the discussion with e-commerce platforms to develop new products and explore innovative partnership models.

Going forward, the Company will expand its fleet, increase line-haul routes, acquire land in key transportation hubs, and expand sorting centers and warehousing facilities. In Southeast Asia and China, the Company will offer training and technical support to network partners, bolstering the overall capabilities of the entire network. In New Markets, the Company will further enhance the depth and density of network coverage.

The Company will continue to optimize the footprint of sorting centers and route planning and increase investments in the automated equipment and artificial intelligence technology. The Company is also committed to standardizing operational processes and elevating the workforce efficiency across the entire network, to further enhance operational efficiency and service quality.

The Company will conduct a comprehensive study to identify high-growth potential markets, with a specific focus on the Middle East and Latin America. At the same time, we will closely monitor our customers’ global expansion initiatives and enter new markets at the right timing to ensure that our services could respond to customers’ evolving needs in a timely manner.

The Company will continue to invest in technological innovation to upgrade key system functionalities, such as data management and network management, with the aim of enhancing end-to-end efficiency. Additionally, the Company will broaden the application of RFID technology to reduce its environmental footprint and support sustainability goals.

About J&T Express

J&T Express is a global logistics service provider with leading express delivery businesses in Southeast Asia and China, the largest and fastest-growing market in the world. Founded in 2015, J&T Express’ network spans thirteen countries, including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil and Egypt. Adhering to its “customer-oriented and efficiency-based” mission, J&T Express is committed to providing customers with integrated logistics solutions through intelligent infrastructure and digital logistics network, as part of its global strategy to connect the world with greater efficiency and bring logistical benefits to all.

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Fintech PR

Joe Depa named as EY Global Chief Innovation Officer to lead its global innovation strategy

Published

7 hours ago

November 26, 2024

CISION (PR Newswire)

joe-depa-named-as-ey-global-chief-innovation-officer-to-lead-its-global-innovation-strategy

Depa will lead on the discovery and deployment of emerging technologies to help address business challenges and shape the future with confidence
Brings deep experience in identifying new ways that can practically help business transformation through an innovation mindset and culture shift

LONDON, Nov. 26, 2024 /PRNewswire/ — The EY organization announces today the appointment of Joe Depa as the new EY Global Chief Innovation Officer, effective immediately. Within this role, he will spearhead applied innovation to help improve service delivery and guide EY teams to address and solve business challenges.

Depa joins the EY organization at a pivotal moment, as a range of emerging technologies are reshaping businesses and industries, creating a multitude of new challenges and opportunities. To keep pace, the EY organization is continuing to make significant investments in areas such as artificial intelligence (AI), quantum computing and blockchain, and most recently formed the EY.ai Global AI Advisory Council.

In his new role, Depa will be leading the organization’s global innovation strategy. This will include overseeing efforts to successfully implement emerging technologies for tangible business applications, both internally and across work of EY member firms with clients.

Raj Sharma, EY Global Managing Partner of Growth and Innovation, says:

“At this time of constant disruption, success would require a forward-thinking approach and willingness to make bold decisions, which are at the heart of an innovative mindset. We’re thrilled to have Joe’s deep experience and knowledge around AI and data to lead on our strategic approach to innovation so that EY teams can help clients shape their future more confidently.”

Throughout the last decade, Depa has worked closely with C-suite leaders and boards to bring innovative products and services to market, improve client and employee experiences, and help enhance operational efficiencies through technology. Most recently, he served as the inaugural Chief Data and AI Officer at a leading university and health care organization. At the university, he helped to promote AI literacy, launch a responsible AI governance program and enable a secure data foundation. Prior to that, he acted as Senior Managing Director and Global Lead for Data and AI at a global multinational professional services company, where he led a team of AI strategists and data engineers in developing and implementing new products and services.

Joe Depa, EY Global Chief Innovation Officer, says:

“I’m truly excited to join an organization that is ‘All in’ on its commitment to the transformative potential of emerging technologies. I look forward to working with the EY teams and clients to help empower them to apply innovation in bold, new ways that help create value for clients through data, AI and emerging technologies to make the world a better place.”

A renowned thought leader in the field of AI, Depa has been recognized as one of the “Top 50 Global Leaders” by World Summit AI and has received Fast Company’s “World Changing Idea” award, among other accolades.

For more information, visit: ey.com.

About EY

EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets.

Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow.

EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.

All in to shape the future with confidence.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

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Fintech

Fintech Pulse: A Daily Dive into Industry Innovations and Developments

Published

9 hours ago

November 26, 2024

Peter Tolan

fintech-pulse:-a-daily-dive-into-industry-innovations-and-developments

The financial technology sector continues to evolve at a rapid pace, offering innovations that disrupt traditional paradigms. Today’s briefing underscores fintech’s diverse growth avenues: from substantial venture capital plays and strategic partnerships to groundbreaking implementations in lending. Here’s a closer look at recent developments shaping the landscape.

Synapse’s Comeback and Andreessen Horowitz’s Strategic Bet

Source: Axios
Synapse, a financial infrastructure company previously embattled by controversy, is staging a remarkable comeback, backed by none other than venture capital heavyweight Andreessen Horowitz (a16z). With this new infusion of funds, Synapse aims to consolidate its position as a premier platform for building financial services tools.

This resurgence demonstrates the resilience of the fintech ecosystem, where innovation often prevails over turbulence. Synapse’s renewed vigor also signals that top-tier investors remain bullish on infrastructural solutions pivotal to the future of digital finance. Andreessen Horowitz’s participation not only validates Synapse’s model but also underscores the VC giant’s enduring interest in fintech infrastructure, even amid global economic uncertainties.

Analysis:
This partnership exemplifies the dynamism within fintech, highlighting the interplay of innovation, capital, and resilience. It also raises questions about the broader implications of giving second chances to firms with turbulent histories. While Synapse’s evolution could inspire others, it also places a spotlight on governance and accountability in high-growth sectors.

Israel’s Fintech Scene Gets a Boost with Investment in Finova Capital

Source: Calcalistech
Israeli fintech startup Finova Capital has raised an impressive $20 million in a funding round led by prominent institutional investors. This marks a significant milestone for the company as it seeks to expand its suite of financial solutions aimed at underserved markets.

Israel’s fintech ecosystem has long been recognized as a hub of innovation, and this latest investment only reinforces its global standing. Finova Capital’s focus on empowering smaller businesses and fostering financial inclusivity aligns with emerging trends where tech-driven solutions bridge critical gaps in financial services.

Analysis:
With this funding, Finova is poised to enhance its technological offerings while contributing to economic inclusion. However, the broader fintech industry will watch closely to see how the company leverages this capital amid increasing competition from regional and global players.

India’s Yubi Plans a Fundraising Push

Source: Bloomberg
Yubi, a prominent Indian fintech platform backed by Insight Partners, is reportedly preparing for a new fundraising round. Having already established itself as a leader in credit infrastructure, Yubi aims to bolster its offerings and expand its market footprint.

India’s fintech landscape is witnessing explosive growth, with platforms like Yubi playing a critical role in the credit ecosystem. Yubi’s planned fundraising reflects the broader appetite for scaling solutions that streamline credit access, particularly in emerging markets where traditional lending models often fall short.

Analysis:
This development highlights two key trends: the increasing reliance on credit platforms in high-growth economies and the strategic role of international investors like Insight Partners in driving fintech innovation. Yubi’s expansion plans could set a precedent for other regional fintech players seeking to scale amid global economic headwinds.

Provenir and Hastings Financial Services Win Global Recognition

Source: Business Wire
In a testament to the transformative power of digital lending solutions, Provenir and Hastings Financial Services have been jointly recognized for the Best Digital Lending Implementation at the IBSi Global Fintech Innovation Awards. This accolade underscores the success of their collaboration in modernizing the lending process through cutting-edge technology.

Provenir’s advanced decision-making platform and Hastings Financial Services’ lending expertise have delivered a solution that significantly enhances user experience, operational efficiency, and risk management. Such innovations highlight the increasing role of partnerships in advancing fintech’s digital transformation.

Analysis:
This recognition not only validates the efficacy of digital lending but also emphasizes the importance of partnerships in driving innovation. It signals to the industry that collaboration can be a powerful tool for staying ahead in a rapidly evolving marketplace.

Microf and Quantum Financial Technologies Forge New Alliances

Source: PR Newswire
Microf, a financial solutions provider, has announced a strategic partnership with Quantum Financial Technologies. This collaboration aims to expand lending solutions for contractors, providing streamlined access to capital for businesses in need of flexible financing options.

This partnership is a timely response to the growing demand for specialized financial products in niche markets. By leveraging Quantum’s technology, Microf can now offer more tailored solutions, particularly to contractors navigating complex financial requirements.

Analysis:
This development reflects a growing trend: the diversification of fintech offerings to serve specific market segments. As competition in mainstream fintech intensifies, targeting underserved niches could become a defining strategy for success.

Key Takeaways for the Fintech Ecosystem

Resilience in Fintech Funding: Despite economic uncertainties, venture capital continues to fuel innovative fintech players like Synapse and Finova Capital.
Regional Growth Stories: From Israel to India, fintech ecosystems are thriving, attracting global attention and investment.
Collaboration as a Catalyst: The success of partnerships like Provenir-Hastings and Microf-Quantum underscores the importance of strategic alliances.
The Power of Recognition: Awards like the IBSi Fintech Innovation Awards validate industry achievements, inspiring others to push the envelope.
Focus on Inclusion: Whether through credit platforms or lending solutions, fintech is playing a pivotal role in fostering financial inclusivity worldwide.

Looking Ahead: Challenges and Opportunities

The fintech sector’s journey is far from linear. Regulatory complexities, technological disruptions, and market volatility remain persistent challenges. However, as seen in today’s developments, the opportunities far outweigh the risks. By prioritizing innovation, collaboration, and inclusivity, fintech players can navigate the complexities of the global financial landscape.

This moment in fintech history is pivotal. It’s a time for bold decisions, strategic partnerships, and a commitment to bridging financial divides. As industry players rise to the occasion, the road ahead promises a future where technology and finance intertwine to empower individuals and businesses alike.

The post Fintech Pulse: A Daily Dive into Industry Innovations and Developments appeared first on News, Events, Advertising Options.

Fintech PR

BIZCLIK MEDIA LAUNCHES DECEMBER EDITION OF FINTECH MAGAZINE

Published

10 hours ago

November 26, 2024

CISION (PR Newswire)

The December edition of FinTech Magazine includes interviews with leading experts and executives from Alipay+, Marqeta & Flyfish

LONDON, Nov. 26, 2024 /PRNewswire/ — BizClik, the UK’s fastest-growing publishing company, has released the latest edition of FinTech Magazine.This publication is highly regarded by voices within the Financial Sector for its in-depth reports and interviews with prominent figures in the industry.

FinTech Magazine

This month’s edition features an exclusive lead interview with Flyfish C-Suite, Savvas Pashias, Shay Merary and Michael Zetser on how they have developed a platform for SMEs to access banking services, as traditional infrastructure struggles to meet increasing cross-border needs.

“The UniFi platform is inherently scalable, designed to growin line with a company’s expansion and service requirements” – Michael Zetser, CEO, Flyfish

The edition also contains extensive interviews with key thought leaders from Marqeta, Sidekick, PayU and more. Plus the Top 10: Decacorns

You can visit FinTech Magazine for daily news and analysis of the ever-changing financial industry.

About BizClik

BizClik is one of the fastest-growing digital media companies in the UK, host to a growing portfolio of industry-leading global brands and communities.

BizClik’s expanding portfolio includes Technology, AI, FinTech, InsurTech, Supply Chain, Procurement, Energy, Mining, Manufacturing, Healthcare, Mobile, Data Centre, Cyber, and Sustainability.

For more information, please visit our website.

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