J&T Express

Highlights of draft IPO prospectus

19 June 2023
 J&T Express, a leading ecommerce logistics company in Southeast Asia & China, filed its draft IPO
prospectus to Hong Kong Stock Exchange on 16 June 2023

The Application Proof, as the substantially-complete

draft IPO prospectus is called, gives a good glimpse
into J&T’s business operations, financials,
competitive standing and shareholders.

The company subsequently needs to pass the

hearing by HKEX, and go through a period of
marketing, before the stock can start trading. This
will usually take a few months.

In this document, we highlight a few key areas of the

prospectus which we think are quite relevant to
stakeholders of Southeast Asia’s ecommerce
ecosystem.

You can also find deeper insights from Momentum

Works reports Ecommerce in Southeast Asia & Who
is J&T:

Click covers above to access the documents in EN/CN respectively

© Momentum Works
Table of contents

1. Revenue growth, 2020 - 2022

Momentum Works 2023. All rights reserved. The material

2. Revenue contribution by region, 2020 - 2022 contained in this document is the exclusive property of
Momentum Works. Any reliance on such material is made at the
users’ own risk.

3. Parcel volume delivered by region, 2020 - 2022

4. Gross profit per parcel in each region, 2020 - 2022

5. Market share in SEA vs China, 2022

6. Top customers, 2020 - 2022

7. Key shareholders

8. J&T and its root in Oppo / BBK ecosystem

3
1. J&T’s revenue grew 4.7x between 2020 and 2022

1. Adjusted EBITDA refers to profit / loss

of the year, adjusted for:
Share-based payments and expenses,
(US$ B) Revenue Adjusted EBITDA1 integration cost, fair value change of
financial assets and liabilities at
7.3 fair value through profit or loss,
depreciation and amortization, finance
income, finance costs, income tax
expenses

4.9

1.5

-0.3 -0.2
-0.5
2020 2021 2022

Adj EBITDA
-21% -11% -3%
margin (%)

4
© Momentum Works
2. China’s revenue contribution for J&T grew to 56% in 2022, surpassing Southeast Asia

Revenue contribution by region (%) Growth

2020-2022

11% Others1 78.4x

6%
56% China 8.6x

45%

1%
Southeast
31% 33% 2.3x
49% Asia
68%

2020 2021 2022

1. Includes revenue from cross-border services and revenue from domestic express delivery services in other regions
5
© Momentum Works
3. J&T delivered >14.5 billion parcels in 2022, mostly in China
J&T parcel volume 2020 - 2022 (in billions)

Southeast Asia China Others1

0.06

44.3%

12.0
300%
8.3

16.3%
2.1 87.3%

2.2 2.5
1.2

2020 2021 2022

Acquired Best Express China in Dec 2021

1. High-growth markets around the world, including Saudi Arabia, UAE, Mexico, Brazil and Egypt
6
© Momentum Works
4. On a per parcel basis, J&T is narrowing losses in China, while profit in SE Asia declined

Gross profit (loss) / parcel (US$)1

Southeast Asia China

2020 2021 2022

1. Gross profit (loss) per parcel = Revenue per parcel - cost per parcel
© Momentum Works
5. J&T leads in Southeast Asia, while market in China is a tough fight
Market share of top express delivery operators (by parcel volume) in Southeast Asia and China in 2022

Others

Company J:

Company I:
Others

Company H:

Company G:
Company D:

Company C:
Company F:
Company B:

Company A:
Company E: * For more insights about the dynamics in
Southeast Asia’s ecommerce ecosystem,
including logistics, refer to:

Ecommerce in
Southeast Asia- report
SEA China by Momentum Works

Note: J&T’s IPO prospectus did not disclose exact company names; company names are inferred by Momentum Works by referring other primary and secondary sources
8
© Momentum Works
6. Shopee remains top customer, with TikTok Shop catching up fast

J&T’s direct customers in China are

Revenue split by customer (%) primarily network partners, not
ecommerce platforms.

55% 61% 74%

Other
customers

7%
Top 5
customers
35% 35% 17%

2020 2021 2022

Note: J&T’s IPO prospectus did not disclose exact company names; company names are inferred by Momentum Works by referencing other primary and secondary sources
9
© Momentum Works
7. J&T founder Jet Lee, Tencent, Boyu and ATM Capital are top shareholders

Shareholders (% shareholding)

11.54% Other investors

58.6%

6.32%
6.10%
5.49%

3.10%
2.00% 1.99% 1.62% 1.54%
0.77%
0.54% 0.39%

Jet Li
李杰
Founder

10
© Momentum Works
8. Many shareholders have strong roots in the BBK/Oppo ecosystem

11.54%
Four senior leaders of BBK / Oppo collectively hold 11.63% of J&T

Tony Chen Zhijiang Jin Yuan Zhang Alice Yu-fen Cheng

(陈明永) (金志江) (张源) (郑玉芬)

Founder/CEO CEO Distributor, CFO

BBK Educational East China 2005-2021
Electronics (Jiangsu/Anhui)

Worked in Oppo for 15 Was recruited into

years; built & led * For more insights about how the BBK /
Oppo/BBK
Oppo distributor in Oppo ecosystem enabled J&T Express
ecosystem in Jiangsu
Indonesia before (and maybe PDD), refer to:
province by Yuan
founding J&T Zhang
Who is J&T-
report by
Momentum Works

© Momentum Works
© Momentum Works
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