J&T Global Express Ltd B

Thank you for standing by. Welcome to J&T Global Express Ltd 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 11 on your telephone. You will then hear an auto message. Please be advised that today's conference is being recorded. I would now like to hand the call over to the first speaker today, Ms. Sylvia from the company.

Thank you, operator. Hello, everyone, and welcome to J&T Express 2023 earnings conference call. I'm Sylvia from the investment department. The company's results and the investor relations presentation were released earlier today and are now available on the company's IR website at ir.jtexpress.com. Before we start the call, we would like to remind you that The call may include forward-looking statements which are underlying by a number of risks and uncertainties and may not be realized in the future for various reasons. Information about general market conditions is coming from a variety of sources outside of J&T. This presentation also contains some unaudited non-IFRS financial measures. that should be considered in addition to, but not only as a substitute for the company's financials prepared in accordance with IFRS. I have with me J&T's Executive President, Stephen Fan, Vice President, Charles Ho, and CFO, Dylan Tay. Our management will share strategies, operating highlights, and financial performance for the full year of 2023. This will be followed by a Q&A session. With that, let me turn the call over to Steven. Steven will read through his prepared remarks in Chinese before I translate for him in English. Steven.

Okay. Hello, everyone. Welcome to today's press conference. On behalf of JITUSUDY, it is an honor to share with you the company's annual performance in 2023. This is the company's In the past year, in the face of multiple challenges of the macroeconomic economy and intense market competition, our business has still gained rapid growth. In 2023, the company handled a total of 18.8 billion packages, which is 29% of the total growth. Next, I will introduce the development of each business in parts. First is China. In 2023, the express business in China made a major breakthrough. In the case of a 27.6% increase in business volume and a 0.7% increase in market share, EBITDA has been adjusted to profit and loss. After four years of accumulation, G2 has become one of the most competitive express service providers in the Chinese market. At the business end, we are deeply aware that the industry is experiencing a process from quantity change to quality change. Therefore, we are very concerned about the service quality, whether it is the quality of the service . . . . In the last two or three years, G2 has launched a high-end e-commerce product, 2UDA. This is the company's new service that was developed on the basis of standard express products, marking our product's diversification. Our network capability and strength are constantly improving. In the future, we will improve service quality, improve brand image, and improve customers' understanding of G2 brands to reach more users and accumulate more high-quality customers. Next is Southeast Asia. . . . . . . . . . . The third is to provide high-quality, high-performance services. Next, I will introduce our performance results and future development plans around these three driving factors. The first is the development of the e-commerce industry and the courier industry. In 2023, Southeast Asia e-commerce transactions amounted to $1,897 billion, which increased by 22.6%. Among them, social e-commerce transactions amounted to $819 billion. is one of the fastest-growing markets in the world, with a 36.2% growth rate. G2 has caught up with this growth, especially with the trend of social media rising rapidly in Southeast Asia. In addition, G2 has improved its network construction and operation capabilities. G2 has been growing in the Southeast Asian market for nine years, covering the widest network density in Southeast Asia, with the widest CUD service range, and the strongest express service provider with the widest processing capacity. The single-day processing value during the harvest period is up to 16 million units. This solid network has provided us with good security for our long-term growth. In 2023, we will also use the industry-advanced experience and measures accumulated in operation in China to operate in Southeast Asia, making our unit ticket costs in Southeast Asia drop by 11.8%. The efficiency of operation is significantly improved. In the future, we will continue to invest in network construction China China China The average investment time of the company in Southeast Asia has been reduced by 6.5%. The customer speed rate is also constantly decreasing. The quality of service is constantly increasing. We are concerned that the customer's demand for quality of service is increasing. In the future, we will continue to maintain close communication with customers and provide customized services to meet the needs of multiple customers. Finally, the new market. The customs data shows that In 2023, China's cross-border e-commerce import and export scale reached 2.4 trillion yuan, which increased by 15.6 percent. Among them, cross-border e-commerce exports of 1.8 trillion yuan increased by 17.6 percent. The development of cross-border e-commerce is as good as ever. More and more Chinese e-commerce platforms have participated in global competition, among which the Latin American market is called the last blue sea, becoming one of the potential markets where major cross-border e-commerce giants focus on. At the same time, as the political and economic relations between the Middle East and China entered a new historical period, it sought economic transformation by itself. The Middle East has also become a popular choice for e-commerce platforms to go out of the sea, and G2速D, after two years of deployment, has established the last public network in this market. Due to the surge in e-commerce out of the sea in China, in 2023, the company's new package volume in the new market will increase by 369%. In the future, we will continue to expand our production capacity, expand our network capacity and quality to better serve our customers and grow with our customers. In the future, we will pay close attention to the movements of other global markets. We may choose the right way to enter other markets at the right time and achieve sustainable growth at a global scale. We believe that through constant efforts and continuous innovation, we will be able to serve global customers better. Hello, everyone.