Q & A Highlights

Q: How should we think about the future growth trajectory in Southeast Asia, given the very strong parcel volume growth in the first half? A: Charles Hou (Vice President) stated that the e-commerce and express delivery industry in Southeast Asia will continue its rapid growth trajectory, with industry consultants projecting approximately 35% growth in 2026 and a high double-digit CAGR over the next five years. The company is confident it will grow faster than the industry average, leveraging its robust network capabilities to benefit from e-commerce development. Additionally, the company is actively expanding non-platform parcels, which are still at a very early stage and will serve as an effective supplement to volume growth over the long term.

Q: Can you provide an update on the CapEx outlook for this year and the next few years, with a breakdown by region? A: CFO Say Keong Tey explained that CapEx increased in the first half, primarily allocated to automated sorting machines, vehicles, outlet equipment, and IT/AI spending. In Southeast Asia, investments are focused on Thailand and Vietnam, including deploying automated equipment across its 10,800 outlets, where there is significant room for growth compared to China. In other markets, Brazil is a key area of spending. In China, the company is investing in advanced sorting centers, including a new facility in Yiwu, Zhejiang. The company expects total CapEx for the year to be between $800 million and $900 million, slightly higher than previously guided.

Q: How does the asset-light operating model for new markets like Europe and Latin America differ from the approaches used in Southeast Asia and China, and what is the current progress? A: Executive President Steven Fan explained that in the early stages of entering new markets, the company will cooperate with local players who possess resources and operational experience to rapidly improve efficiency and achieve better input-output. The company has begun assembling core teams and advancing preparation for operations in Europe and America, starting with countries such as the UK, France, Germany, Italy, and Spain. However, this is expected to take another one to two years before seeing results, and the company will provide updates as progress is made.

Q: Can you share more about the progress of non-platform parcels in Southeast Asia, including volume scale, growth, and major customers? A: Charles Hou (Vice President) detailed four key areas of focus for the first half of 2026: 1) Expanding premium products like same-day and next-day delivery to non-platform parcels, and developing customized products such as price guarantee services. 2) Optimizing in-store parcel standing experiences by strengthening brand image and standardizing parcel standing areas. 3) Advancing door-to-door pickup through last-mile efficiency improvements and optimizing courier incentive mechanisms. 4) Improving the experience for monthly-settled key accounts, from contract signing to shortening the account receivable cycle, including faster COD remittance. This is a core strategy for the group to improve long-term profitability.

Q: Given the anti-involution policy in China, how should we think about volume growth for J&T and the overall industry in the second half and next year? A: Charles Hou (Vice President) noted that the growth pace of the China express industry has become healthier and steadier under the anti-involution policy. J&T's China team, along with regional sponsors, is deeply engaged in empowering the last-mile network and working closely with franchisees to strengthen their operational foundation. The company has also strengthened its presence in specific industries like beauty, personal care, and 3C, while continuing to work on customer diversification, including returns and individual parcels. These efforts have helped the company deliver stronger-than-industry growth, with market share increasing to 7.6%.

Q: How should we view the future trend of gross profit per parcel, given that growth has come in better than guidance? A: CFO Say Keong Tey explained that as the company replicates its China experience across regions, it has achieved refined operations and improved efficiency, enhancing group-wide resource allocation and economies of scale. In the first half of 2026, the rapid growth in Southeast Asia and other markets increased their proportion of total parcel volume, driving the group's adjusted EBIT per parcel up 77% year-on-year to 2.5 U.S. cents. As non-China parcel volume continues to increase, the overall EBIT per parcel is expected to gradually increase in the future.

Q: What were the key financial highlights for the first half of 2026? A: CFO Say Keong Tey reported that total revenue increased 39.5% year-on-year to $7.7 billion, with core express delivery revenue up 39.6% to $7.5 billion. Gross profit rose 88.4% to $1.01 billion, with gross margin expanding from 9.8% to 13.2%. Adjusted EBIT reached $430 million, up 121.7%, with a margin of 5.7%. Adjusted net profit was $350 million, up 124.3%, with a margin of 4.6%. Operating cash flow increased 50.9% to $640 million, and the company maintained a strong cash position of $2.91 billion.

Q: What were the key operational milestones achieved in the first half of 2026? A: Executive President Steven Fan highlighted two milestone breakthroughs: 1) In Q2 2026, the company achieved average daily parcel volume exceeding 100 million parcels in a single quarter for the first time, making it one of the few express operations globally capable of handling this volume. 2) Revenue contribution from non-China markets increased to 50% for the first time. Total parcel volume reached 17.5 billion, up 25.1% year-on-year, with Southeast Asia growing 71.2% to 5.52 billion parcels, China growing 9.6% to 7.62 billion parcels, and other markets growing 19.9% to 360 million parcels.

Q: What is the company's approach to shareholder returns? A: CFO Say Keong Tey stated that the company completed the repurchase of 99.32 million shares in the first half of 2026 and cancelled 115 million shares on August 12, 2026. On June 25, 2026, the Board approved a new share buyback, increasing the repurchase amount to HK$2 billion. The company continues to deliver shareholder returns backed by its strong financial performance.

Q: What is the company's strategy for expanding in other

For the complete transcript of the earnings call, please refer to the full earnings call transcript .