(Yicai) Jan. 15 -- Chinese express delivery firm SF Holding and its Indonesian peer J&T Global Express are investing in each other as part of an equity partnership agreement worth HKD8.3 billion (USD1 billion) that is aimed at combining their strengths and accelerating international expansion.

SF will purchase 822 million newly issued Class B shares in J&T at an issue price of HKD10.10 (USD1.30) per share for a 10 percent stake, while J&T will buy 226 million newly issued H shares in Shenzhen-based SF at a price of HKD36.74 (USD4.71) each for a 4.29 percent shareholding, the two companies said in separate statements yesterday. Both stakes will be subject to a five-year lock-up period.

SF's strengths lie in its premium express services, cold chain logistics and air transport, while J&T excels in e-commerce parcel delivery, especially on platforms like Pinduoduo and Shopee, courier logistics expert Zhao Xiaomin told Yicai. The tie-up will allow the two companies to complement each other, forming a full-range, integrated delivery service covering all price points and scenarios. The deal may also ease cutthroat competition and help the industry move toward higher-quality growth.

J&T will leverage its extensive last-mile network and local operations in 13 countries, which together with SF's cross-border first-mile and mainline logistics resources and mature operating systems, will enhance the network coverage and competitiveness of both firms’ end-to-end cross-border logistics services, the Jakarta-based company said.

SF described the share swap as a key step in furthering its global strategy. By combining SF’s strengths in cross-border trunk line logistics with J&T’s overseas last-mile network and local expertise, the two companies aim to link arms on critical logistics infrastructure to build a more efficient and resilient global smart logistics network, it said.

J&T will use SF's last-mile station network for some deliveries in the domestic market, SF said. Overseas, in markets such as the Philippines and Saudi Arabia, SF will also leverage J&T's established last-mile delivery networks when handling international supply chain and express delivery operations.

Analysts noted that while competition in the domestic courier market is fierce, international markets still offer significant growth potential.

SF logged net profit of CNY8.3 billion (USD1.2 billion) in the third quarter last year on revenue of CNY225.2 billion (USD32.3 billion). Its international express and cross-border e-commerce logistics revenue jumped 27 percent year-on-year.

J&T handled 2.4 billion parcels in Southeast Asia in the fourth quarter of 2025, surging 73.6 percent from the year before, the company reported on Jan. 7. In new markets such as Saudi Arabia, the UAE, Mexico, Brazil and Egypt, parcel volume soared 79.7 percent to 130 million.

Despite the large investment, both firms saw their share price dip today. SF’s stock [SHE:002352] dropped 0.9 percent to close at CNY38.81 (USD5.57), while J&T’s shares [HKG:1519] slumped 3.3 percent to HKD11.44 (USD1.50).

Editor: Kim Taylor