J&T Global Express Ltd B

Thank you, operators. Hello, everyone. Welcome to G&T Express 2026 Interview Results Conference Call.

I'm Haibin Chen, Director of Strategic Investment and Capital Market of G&T Express. The company's results and investor relations presentation were released earlier today and are now available on the company's IR website at ir.gtexpress.com. Before we start the call, we would like to remind you that the call may include forward-looking statements which are underlined by a number of leaks 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 unaudited non-IFRS financial measures that should be considered in addition to but not as substitute for the company's financials prepared in accordance with IFRS. I have with me J&T Executive President Steven Tan, Vice President Charles Ho, and CFO Stephen Kay. Our management will share strategies, operating highlights, and financial performance for the first half of 2026. This will be followed by a Q&A session. Please note that we have live slides showing through webcast this time. 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. Okay.

Welcome to today's press conference. I would like to thank the company on behalf of the company for its constant attention and support, and I am very honored to report to you the financial and financial performance of the Group in the past six months. In the first half of 2026, the company's full-scale express logistics network achieved two milestone breakthroughs. is the company's first time to achieve 100 million package volume in the second quarter. It is one of the few couriers in the world that can deal with one-level package capacity in a modern way. Second, the company's market revenue outside of China is up to 50% for the first time, marking the company's forward-looking development. became one of the world's most outstanding express companies and entered a new era of development. In the first half of 2026, the company delivered high-performance growth with high-performance growth. The company processed 175 billion packages, a total growth of 25.1%. The company's total revenue reached 76.7 billion a year, a total growth of 39.5%. We observed that in the first half of 2026, The global e-commerce and express market are still full of opportunities. In the current market of the company, Latin America has 18 people in a year. Southeast Asia has 48. Compared to China's 159, there is still considerable room for growth. In order to seize the opportunity of commercial and logistics globalization, in the first half of 2020, the company will accelerate the global market with China's advanced logistics experience. First of all, Southeast Asia. In the first half of 2026, the company handled 55.2 billion packages in Southeast Asia. The company continues to become the core logistics partner of T-Talk, LaLada, Zoom, and ShareIn, as well as many mainstream e-commerce platforms, deeply grasping e-commerce growth secrets. B B B B B B China China China China The company has increased by 0.5%. The company has increased by 0.5%. The company has increased by 0.5%. The company has increased by 0.5%. The company has increased by 0.5%. The company has invested heavily in unmanned vehicle maintenance, smart customers, and AI applications. Finally, the other markets. In the first half of 2020, the company handled 3.6 billion packages in other markets, with a growth of 119.9%. The market share rose to 8.9%, and the share rose by 2.7%. The company is cooperating with global e-commerce companies such as TikTok, Shein, Chrome, Huawei, AliExpress, and MercadoLibre. The company is promoting and expanding its network coverage on other networks. On the one hand, it is actively investing in performance production to meet the long-awaited express demand. On the other hand, through business mode output and local innovation, We will continue to strengthen global network infrastructure and deepen China's experience in global business. Hello everyone, welcome to today's results briefing.

On behalf of the company, I would like to express our sincere gratitude for your long-term attention and support, and I am honored to report on the group's operational and financial performance over the past six months. In the first half of 2016, the company achieved two milestone breakthroughs in its Global Express logistics network. Second quarter of 2016, the company achieved average daily parcel volume exceeding 100 million parcels in a single quarter for the first time, making it one of the very few express operations in the world capable of handling 100 million parcels on a normalized basis. Second, revenue contribution from non-China markets increased to 50% for the first time. making that the company's vision of becoming one of the world's best express enterprises has entered a new stage of development. In the first half of 2016, the company delivered an outstanding growth performance with sustained and high-quality growth. The company processed a total of 17.5 billion parcels, representing a year-on-year increase of 15.1%. The company's total revenue reached representing a year-on-year increase of 35.5%. The company's global consolidated profitability continued to strengthen, with the projected net profit of US$350 million, representing a year-on-year increase of 124.3%. As the proportion of parcel volumes on non-China markets increased, the company achieved achieved an adjusted profit of US$0.25. The operating cash flow reached US$640 million, representing a year-on-year increase of 15.9%. We observed that in the first half of 2016, the global e-commerce and express market continued to present abundant opportunities in a market where the company currently operates. Annual parcel volume per capita in Latin America is 18 parcels, and 48 parcels in Southeast Asia, compared with 149 parcels in China, indicating considerable growth happening. To capture the opportunities arising from the globalization of commerce and logistics, in the first half of 2006, the company had accelerated the transfer of China's advanced logistics experience to global markets through multiple dimensions, including Global Equipment Deployment Model Enablement Talent Proposition and AI-enabled cost efficiency and cost and efficiency cleaning. Continuously expanding and optimizing the efficient and stable global fulfillment networks. Now, I will present the development of each regional business by segment. First, Southeast Asia. In the first half of 2006, the company possessed a total 5.52 billion chargers in Southeast Asia representing a year-on-year increase of 21.2% achieving exciting growth performance with market share further increasing to 38.1% representing a year-on-year increase of 5.3 percentage points maintaining a leading market position The company continues to serve as a qualitative partner for multiple mainstream e-commerce platforms, including TikTok, Lazada, Timu, and Shein, fully capturing the growth dividends from the e-commerce sector. The company is further upgrading its service systems across Southeast Asia. Firstly, actively expanding its fulfillment of warehouse services to provide customers with supply chain solutions tailored to different inventory characteristics. led by enhancing stiffness between platforms and merchants. Secondly, driving brand image upgrading and rolling out a star rating system for carriers to improve the shipping experience for non-platform customers. Thirdly, simultaneously advancing automation upgrades at sorting centers and service outlets to better meet customer needs for capacity, fulfillment efficiency, and stability. Second, China. In the first half of 2086, the company possessed 11.62 billion parcels in China, representing a year-on-year increase of 9.6%, achieving growth above the industry average in a contract market environment, with market share increasing to 11.6%, representing a year-on-year increase of 0.5 percentage points. The company provides quality growth in China through refined operations, strengthening the network foundation by dispatching professional teams to deeply participate in the operational management process of blackmail networks, those to enhance the overall network service level, extending deeper into industrial chain to provide specialized solutions that better match the shifting needs of industry merchants and brand customers, increasing the proportion of technology elements in production and operations, with the number of unmanned delivery vehicles deployed across the network significantly increased and AI applications such as AI customer service comprehensively upgraded. Finally, other markets. In the first half of 2006, the company processed 360 million parcels in other markets representing a year-on-year increase of 119.9% with market share increased to 8.9%. representing a year-on-year increase of 2.7 percentage points. The company is simultaneously in deep cooperation with global e-commerce platforms such as TechClub, Shein, Camoo, Quai, and Aliexpress, as well as local e-commerce platforms such as MercadoLibre. The company is advancing in expansion of network coverage in other markets. On the other hand, actively investing to boost capacity to meet strong express demand. On the other hand, combining export of proven models with localized innovations to explore and iterate a flexible last-mile fulfillment collaboration system suitable for different markets, achieving synergistic improvement in management efficiency and regional adaptability. Today marks the company's 11th anniversary. Looking back, the company has delivered on its growth promise with sustained high-quality growth. Looking forward, we remain committed to reforming reinforcing our global network infrastructure, further leveraging China's proven experience to empower our worldwide aspirations, and continuously optimizing our end-to-end operational efficiency and customer experience. We believe that only by persisting in doing the difficult, but right things, and by taking root and cultivating deep play in every market we serve, can J&T grow into a healthy and long-lasting enterprise. and reward the continued support of our investors. Thank you. Next, I would like to invite CFO Dylan to present the financial data for this interview result.

Thank you, Hai-Fing. Thank you, Dylan. Thank you all for joining today's conference call. Next, I would like to present the key financial highlights of the group. As always, please note that unless otherwise specified, all the figures are in U.S. dollars. and the percentage changes represent year-on-year changes. The group's detailed financials, unit economics, cash flow, capital expenditures have all been disclosed on our investor relations website. Here I will only briefly summarize the group's core performance, highlights for the first half of 2026. Looking at this page overall, the group's revenue for the first half of 2026 increased from US$5.5 billion in the same period of 2025 to US$7.7 billion this year, representing a year-on-year increase of 39.5%. Core Express delivery revenue increased from US$5.3 billion to US$7.5 billion, representing a year-on-year increase of 39.6%. The core driver of the growth was the rapid growth in the parcel volume from non-China markets, driving the related revenue contribution of 43% in the first half of 2025 to 50% in the first half of 2026, representing a year-on-year increase of 7 percentage points. This is the first time that our non-China markets revenue has reached this historical high of 50%. In terms of region, the revenue from the China segment in the first half of 2026 increased from 3.1 billion in the same period of 2025 to 3.8 billion this year, representing a year-on-year increase of 22.4%. Revenue from Southeast Asia segments in the first half of 2026 increased from 2 billion last year to 3 billion this year. representing a year-on-year increase of 53.8%. Revenue from other market segments in the first half of 2026 increased from $0.36 billion to $0.72 billion this year, representing a year-on-year increase of 99.3%. Next, turning into our profitability, the Group continues to advance its strategic Upgrade, where we continue to empower our regional business development and centrally coordinate resource allocation and implement centralized management and resource sharing with the aim to unlock economies of scale and enhance the cross-regional synergy. So, accordingly, profitability-related metrics have been adjusted to be disclosed at a group level to objectively reflect the overall competitiveness of the group's resources. The group's profitability continued to strengthen in the first half of 2026. Gross profit was $1.01 billion, representing a year-on-year increase of 88.4%, with the gross margin rising from 9.8% to 13.2%, representing a year-on-year increase of 3.4 percentage points. Next, in adjusted EBIT, Our adjusted EBIT reaches $430 million representing a year-on-year increase of 121.7% with the adjusted EBIT margin of 5.7% which is representing a year-on-year increase of 2.1 percentage points compared to last year. Finally, our adjusted net profit. Our adjusted net profit was $350 million for the first half of this year which represents a year-on-year increase of 124.3% to the adjusted net profit margin of 4.6%, representing a year-on-year increase of 1.7 percentage points. Next, turning into our UE. In the first half of 2026, our group's revenue per parcel was $0.44. representing a year-on-year increase of 11.5%. Our adjusted in-bid task per parcel was US$2.5, representing a year-on-year increase of 1.1 cents or 77.2%. The China market saw more rational competition under the anti-involution policy while the rapid growth in the parcel volume from our non-China regions with higher profitability contributed to the continued improvement in the group's per parcel profitability in the first half of 2026. Turning into our balance sheet, in the first half of 2026, our net cash flows from operating activities was 640 million, which represented a year-on-year increase of 50.9% compared to US$420 million in the same period of 2025. This reflects our significant improvement in our cash generation capability. As of June 30, 2026, the group maintained a strong cash position with our cash and cash equivalent, restricted cash, and bank wealth management products total US$2.91 billion. This represents a year-on-year increase of 64.2% from US$1.77 billion in the same period last year, which also included US$1.25 billion in the bank wealth management products. Finally, I would like to turn our Commitment to Shareholders' Return The company has always placed great emphasis on shareholders' return. In the first half of 2026, we completed repurchase of 99.32 million shares and we cancelled 115 million shares on August 12, 2026. On June 25 of this year, we also announced that the board has approved new share buybacks increasing our repurchase amount to HK$2 billion. We continue to deliver shareholder returns at the back of our strong financial performance. So all in all, the above are some of the key financial highlights of the group for the period. Thank you for your attention. I turn my time back to Hebin.

Okay, now we can open the question to the animators.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask the questions on the phone, please press star 11 and wait for our name to be announced. One moment for our first question. Our first question comes from the line of Lu Su Jia of Chang Jiang Zhen Juan. Please ask your question.

For the Thank you, operator. Steven, Charles, Dylan, and Haibin. Good evening. I'm from Lujia, Changjiang, China. Thank you for giving me the first opportunity to ask a question. My question is focused on Southeast Asia. Congratulations to the company for achieving a very good result in the first half of the year. Whether it's Southeast Asia, Europe, or Latin America, including China, you have achieved a very good result. In the first half of the year, we saw that Southeast Asia Let me translate myself by Charles, Dylan, and Haibin. Thank you for taking my question, and congratulations on very strong performance in the first half. My question is from Southeast Asia.

We continue to see very strong touch of volume growth in the first half, and the market is quite focused on the sustainability from this growth.

How should we think about the touch of volume growth trajectory in the Southeast Asia going forward? Thank you.

Thank you. Also based on some outside industry consultant's prediction data In 2026 Southeast Asian retail and express industry Everyone has this prediction Approximately 35% of the score In the next five years Its annual compound growth rate It is also expected to maintain high double-digit growth As a company We have confidence will be faster than the average rate of the industry. In the process of developing the business of this platform, it is constantly improving the quality, efficiency, efficiency, productivity, and stability of logistics services. Our company is using this solid B T T T T T T T We are Thank you, Shijia. The question is about Southeast Asia, the future growth potential. So Charles was saying that we continue to believe

that the e-commerce and express delivery industry in Southeast Asia will continue to remain in the very rapid growth trajectory, and with our e-commerce platforms continue to invest very actively into the region. So according to the industry consultant's data, both the social e-commerce and the express delivery industry in Southeast Asia will be expected to grow at approximately 35% in 2026. and are also projected to maintain a high double-digit CAGR over the next five years. So from the company perspective, we are very confident that we will grow faster than the average industry growth. We've also observed that alongside the booming development of the e-commerce platform, the demand of the logistics service quality, the logistics efficiency, The network stability, the capacity, all these expectations and the demand is also increasing. So leveraging from our robust network capabilities, we continue to benefit from the development of e-commerce on one hand, and on the other hand, we continue to help our e-commerce customers and platform to expand coverage and also to stimulate online consumption. Thereby achieving healthy and sustainable development for the entire Express industry in Southeast Asia. Of course, Charles also emphasized that other than e-commerce, we will continue to actively expand our non-e-commerce, or we call it the non-platform process. So the demand expression for non-e-commerce of non-platform parcels in the region is still at a very early stage and will serve as an effective supplement to our parcel volume growth over the long term into the future. So that's Charles' response. Thank you.

Questions? One moment for our next question.

Our next questions will come from the line of Fan Qianlei of Morgan Stanley. Please ask your question.

谢谢主持人 关立成 下午好 感谢给我提问的机会 也恭喜公司取得了非常强劲的业绩增长 我有一个小问题是关于 未来的资本开支的投入 今年以及未来几年的展望 可不可以帮我们按照不同的区域 So let me translate for myself. Thank you, management, for taking my question, and congratulations to the very strong profit growth. So my question is about the CapEx Outlook for this year and next few years. Specifically, can you please break down by region when guiding about Outlook? Thank you.

Okay. So, I will use English to respond to your questions. So, yeah, the CapEx, we have seen an investment CapEx increase in the first half of the year in response to in tandem with our expansion and also the high volume growth across our regions. So, our CapEx, as everyone knows, is primarily allocated to Automated sorting machines equipment in our sorting centers, vehicles, sorting equipment at our outlet level, as well as in terms of IT and AI standings. All these will deliver immediate benefits for our efficiency improvement and cost optimization. So to your point about the breakdown by regions, obviously we start with Southeast Asia. We continue to see strong demand of our business there, and we have allocated capital expenditure to commensurate with the high growth in this business. So in terms of the geographies that we spend more in Southeast Asia, it will be Thailand and Vietnam, where our parcel volume has grown rapidly over the last few quarters. Next, for the other markets, we also have seen strong demand Demand, just like what Stephen mentioned, the parcel per capita in the other markets, especially LATAM, is still very low. So we continue to invest in our capacity there, and the specific market that we have done quite a bit of capex spending is Brazil, where our parcel volume has also grown rapidly in the last few quarters. So that's one area in terms of our demand. So adding on to that, just to maybe add more colors as well for Southeast Asia, other than the sorting centers and the vehicles, we also have continued to build out our last mile automation capabilities in our Southeast Asia, which we now have 38 plus market shares. So we are deploying more automated equipment across our outlets, Enhancing the efficiency of the couriers, the outlet processing, and the management personnel. So among our 10,800 outlets in Southeast Asia, right now we have only several dozens of automated equipment that we deploy. Compared to a few thousand in China, there's a significant room for us to invest in this space, and we'll continue to do so over the next few years. Next, moving on into China, which is another big area where we spend our capex. We are focusing on our investments on more advanced sorting centers to drive upgrades and also to refine the density of our network. In the first half of this year, we continue to advance the construction of our new Yiwu Zhejiang sorting centers. We have benchmarked to our in terms of efficiency and service quality and we will continue to upgrade as the critical geographies or hubs in China in building out our own swapping centres and Yiwu is one of them. So finally, I think for the new markets, I think we have mentioned before that we will use the asset-like operating model in the newly entered countries to manage our return on investment of our investment deck. At this moment, is actually quite low in proportion in terms of investment in this space. So overall, our CapEx spend, we are expecting this year we will spend about $800 to $900 million of CapEx all in all, slightly higher than what we have guided early on this year. Thank you.

Thank you very much, Dylan. Thank you.

Thank you for the questions. Our next questions will come from the line of Steve Chiu of Goldman Sachs. Please ask your question.

Good afternoon management and thanks and congrats on the very strong results. My question is on your other markets, especially Latin America. So I understand that your revenue and shape of volume will remain robust and some innovative initiatives in your business models such as the last known fulfillment networks in these markets. So can management please explain how this model differs from the approaches that we use in Southeast Asia as well as China and provide an update on our current business progress? Thank you.

Thank you. Thank you, Steve. I will answer this question. At present, we see that we are China China China China The current model is an innovative combination of experience output and localization. It adopts a green capital operation method. The company is in the early stages of the financial market, and has a local resource and operation accumulation market group to start cooperation. These cooperative partners are familiar with the market environment and regional characteristics. As our company is in a new environment, we can quickly develop financial efficiency and achieve a more stable investment production rhythm. . . . . . . . Thanks Steve.

Yeah, I'll translate for Stephen for this question. So I think, so what Stephen was saying that obviously we see very clear opportunity in the European and the American market where the global e-commerce platform they are also expanding rapidly into the regions. and they bring us very clear and also substantial demand for our services. So at the same time, Europe and America are also a region with the highest consumption levels globally. The e-commerce logistics there offers a very high profit potential for the future. So through our experience in Southeast Asia and LATAM in recent years, we have combined basically to combine our business model as well as experience with the localization and we have come up with this new asset-like operating model as we expand our footprint. So what he meant is in the early stage of entering, when we enter into this market, we will choose to cooperate with market players who possess local resources and also operational experience. These partners are familiar with the local market environment and they know the region well and they can help us and help to rapidly improve our operation efficiency in the new smart environment so that we can achieve better input and output rhythm as we expand. So we will continue to explore whether this model can help our expansion into this new country such as Europe or maybe even America. So in terms of where we are, We have already began assembling core teams and advancing preparation work or market feasibility studies for operations in Europe and America. Entering Europe will be similar to our initial entry into Latin America. In terms of the geographies, so Stephen mentioned that we will start with the countries such as UK, France, Germany, Italy and Spain. and very gradually expand the coverage from the other Europe regions. However, it's not going to be a fast process. He also added that we expect this to take probably another one to two years before we can see some results, and we will provide timely updates to all of you as we make progress. Steve, do you want to answer your question?

Thank you.

Thank you for the questions. Our next questions will come from the line of Liu Gangxian of CICC. Please cast your question.

谢谢管理层,再次恭喜公司的这个强劲的业绩增长。 我这边的话想跟进一下今天管理层提到的东南亚市场的目前凭非凭单件的一个业务进展, 就是包括电量增速以及客户的一些情况。 另外的话想 Thank you for taking my question. Again, congrats on the good results. I'd like to follow up on our progress for non-platform parcels in Southeast Asia and is volume scale growth and also major customers and if you can share with us more color about where this business stands right now how big is the already existing demand and how do we expect for future demand after more thank you

Okay, so to Southeast Asian people, Charles will answer this question.

Thank you, Mr. Kang, for your attention on the development of our black market in Southeast Asia. My name is Charles. Just now, at the first question, we mentioned that in Southeast Asia, in addition to the e-commerce business, we also want to develop the non-e-commerce platform. In fact, the non-e-commerce platform business is the most popular are all starting to pay attention to this field. Of course, in Southeast Asia, it started earlier. As you all know, there is a considerable difference between non-branded business and digital business. It is one of the most important areas in our company's business development process. It is one of the key factors B B B B B T T T T T T T B T T T T T T T T T T T We are not only concerned about the efficiency of the order. At the same time, we are starting from the order distribution, the automatic and timely education of the order, the timely delivery, including the customer experience when the order is delivered, including personal customer collection and payment process simplification, and so on. It also includes the non-payment optimization of our delivery service provider's incentive mechanism, so that our delivery service providers are willing to serve our non-commercial customers and be able to provide them with the services they want. On the fourth aspect, it is a very important part of non-traditional business. For example, it is the first class of customers, which we all usually refer to as the first class of customers. We simplify the contract process and simplify our settlement process from the establishment of cooperation relationship of these first class customers. We have done a good job of managing the sales accounts, including if there is a COD, we are promoting the return of this COD direction of 7 plus 1. We hope to assist the development of those monthly customers' business. Express service is never just an activity of a material base. We hope that through our service, we can make

So Charles was saying that as mentioned in question one we continue to develop the non-e-commerce or we call it the non-platform parcels in the region but he also added that It's not just in Southeast Asia, but also all the countries that we operate, we have also started focusing on this. Southeast Asia is just slightly more advanced in terms of the development. And I think overall, this is one of our core strategy of the group going forward to improve our long-term overall profitability into the region. So this is going to be a direction that we continue to pursue in the next few years. So in the first half of 2026, we have worked systematically to advance the improvement of the quality service of this to support our growth in the non-platform parcels. So there are four areas. So the first area is in areas of product planning. So we have further extended our time-definite product such as the same-day delivery or the next-day delivery to the non-platform parcels. And we have also developed customized products such as Kaohsiung Price Guarantee services to enhance our service offering. The second thing is we continue to optimize our in-store parcel-sending experience. In the first part of this year, we have strengthened our brand image on our street-side outlets. We have established standardized parcel-sending areas, and we continue to enhance the customer convenience to allow them to drop off their parcel more easily at our outlets. This is also to enhance the overall experience with us. Thirdly is the door-to-door pick-up. So we have advanced our last month's efficiency improvement and continue to optimize our courier incentive mechanism. So Charles said that it's very important that our couriers, they are motivated to develop this non-platform business as well as delivering this business with high quality and services because they are very essential part of our network. So last but not least, number four is We call it a Type D, or in China we call it Type D, but outside of the U.S., we can call it monthly settled or periodic settled key accounts. Those key accounts, in the first half of this year, we have also continued to improve the experience with us, starting from contract signing, the onboarding experience, and also the account receivable, how do we shorten the account receivable cycle, such as COD, So how do we have fastest remittance of COD into their hands? Because as Charles mentioned, logistics service is not just about providing logistics, but also to enhance quicker trade flows. So in the first half of this year, we have spent a lot of effort across our geography to strengthen our overall onboarding and the customer experience there, and we hope to improve the cash flow. Thank you, Charles. Thank you, Charles. Thank you.

Thank you for the questions. Our next questions will come from the line of Shi Mufan of JP Morgan. Please ask your question.

Q&A I will translate for myself. Thank you, management, for taking my question. My question is regarding the China market. J&T's first half growth in China outperformed the overall industry. So against the backdrop of anti-involution policy, how shall we think about the volume growth for J&T as well as the overall industry? And if possible, can management share the outlook for the second half of this year and maybe next year? Thank you.

Thank you.

Thank you, Mufan. Thank you for paying attention to the impact of China's anti-epidemic. We can see that anti-epidemic is not just one or two days. Under the guidance and continuation of anti-epidemic policy, we think that China's fast food industry needs to be more stable. All the companies in the industry are trying to optimize their quality. How to improve customer experience? How to improve customer experience? How to improve customer experience? How to improve customer experience? How to improve customer experience? How to improve customer experience? We hope that our supporters and co-founders of the company can continue to promote their business brand B B B B We hope to improve our targeted solutions for different industries. Whether it is clothing, makeup, 3C, each industry has its own characteristics. We hope to provide general e-commerce and customer service while also focusing on the characteristics of different industries. B B B B B B B So under the advocacy of anti-involution policy in China,

So all the growth pace of the China Express industry has becoming more and more healthy and steady. So all the industry players, including the company, we continue to center our core development team in terms of quality optimization, cost reduction, efficiency improvement, continuity to enhance service quality. All these are centered around the theme of quality growth. So what we are doing specifically for our China headquarter, our China country team, along with the regional sponsors across our China regions, we continue to empower the last mile network build-up. And our teams deeply engage in the entire process of this management and working very closely with our franchisees to strengthen their operational foundation. As everybody knows, it's very important that we have strong franchisee base. So overall, all this stronger network quality can help us to win new customers in the first half, reduce our customer churn, and also increase our customer satisfaction. This is a collaborative effort between our China country team as well as regional sponsors as well as our franchisees in China. So other than that, Charles also mentioned that we continue to strengthen our presence in certain industry focus, providing in addition to general services, we also have targeted certain industry with unique customer needs and we have tweaked our service delivery model to cater for their needs to make sure we provide solutions which are appropriate and which are also demanded according to their business circumstances. So industries such as beauty and personal care and 3C are some of the examples of our key focus in the first half this year. All these are built on our experience in some of the other industries such as agricultural specialty products which we have experienced significant growth in the previous years as well. So last but not least, we have also, so Charles also added that on the ongoing customer, on the customer diversification point, so other than obviously working on franchisees and also working with the industry groups, industry focus, we also continue to work on higher returns as well as individual parcels. We continue to work with this group and continue to deepen our service offerings and outreach and our operating capabilities in this area, including our brand customers and individual parcels. All this combined has helped us to deliver a stronger first half against overall industry growth. As you can see, our market share continues to increase in China as well. No more time. Hopefully we have answered the questions.

Very clear. Thank you, Charles and Dylan.

Thank you for the questions. We will now take the last question from Zhu Yibo of Chai Tong Zheng Juan. Please ask your question. Please ask your question.

Okay, let me quickly translate that for you. Our growth EBIT proposal will come in better than the guidance given at the start of year. How should we view the future trend of growth EBIT proposal? Thank you.

So as we continue to replicate our experience and our capabilities of our business and our ability in China, as we replicate it across our business, we have Achieve a refined operation management and improve efficiency across all our regions. Enhancing our group's overall resources allocation, cost control and network economy of scale. So in the first half of 2026, as you can see, our parcel volume in Southeast Asia and other markets have grew rapidly. We've increased the proportion of the total parcel volume and this drives our group's EBIT parcel. to increase 77% year-on-year to 2.5 US cents. So this is really a change of the mix. As we continue to... And our non-China parcel volume increase, our overall Egypt parcel will continue to increase. As you can see from growth rate as well, our Southeast Asia growth rate versus other markets' growth rate is a lot higher compared to our China growth rate. So going forward, we expect our group's comprehensive profitability will continue to increase. And 2.5 cents will also gradually increase in the future.

Thank you.

Thank you. We have no more questions from the line. I would like to hand the call back to management for closing.

Let us conclude today's conference call. Thank you for your participation. You may now disconnect your lines.