(Yicai) March 25 --J&T Global Express, an Indonesian express delivery company that collects more than half its revenue in China, made a gross profit for the first time in China last year, thanks to a series of initiatives, such as strategic acquisition, diversification of services and streamlined operations.

J&T logged a net loss of USD1.1 billion in 2023, compared with a net profit of USD1.6 billion in 2022, according to the Jakarta-based company’s latest financial report released on March 22. But adjusted net losses narrowed 71 percent to USD432 million.

China revenue soared 27.7 percent year-on-year to USD 5.2 billion, the report said. While global revenue surged 22 percent to USD8.8 billion. J&T ranked first in terms of parcel volume in Southeast Asia for the fourth consecutive year 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,” said Executive President Steven Fan.

J&T delivered over 15.3 billion parcels in China last year, a jump of 27.6 percent from a year earlier and faster than the industry average. Its share of the China market climbed 0.7 percentage point to 11.6 percent, and per-parcel delivery costs dipped to USD0.34 from USD0.40.

J&T named its first China CEO, Liu Wei, in November. Liu Wei, a member of the founding team and former director of the group's marketing department, is responsible for the domestic market and reports to Fan.

Founded in 2015, J&T operates in 13 countries across Southeast Asia, China, the Middle East, North Africa, and Latin America. It entered China in 2020 and acquired Best’s domestic parcel delivery business for CNY6.8 billion (USD947 million) the next year. In 2022, the firm bought another Chinese logistics provider called Fengwang Information Technology for CNY1.2 billion.

J&T Express’s share price [HKG: 1519] dipped 1.2 percent to close at HKD 11.28 (USD1.44) today.

Editor: Kim Taylor