(Yicai) Aug. 5 -- China's State Post Bureau has launched an investigation into STO Express over safety issues, less than two months after it probed the Chinese unit of Indonesian logistics giant J&T Express for similar allegations.

Delivery companies under the STO Express trademark, brand name, and shipping label have frequently experienced safety incidents this year, with hidden safety hazards repeatedly discovered during inspections at their premises, the State Bureau said in a statement yesterday.

STO Express will fully cooperate and comply with the investigation, it said on its official WeChat account yesterday. The company acknowledged the importance of unified management within its franchise network and its own shortcomings, committing to implementing practical measures to enhance safety across the entire network, and reassured that production and operations are running normally.

STO Express has faced multiple safety issues in the past. In September 2024, a telescopic conveyor collapsed at its distribution center in Heilongjiang province, resulting in the death of one employee. In June this year, an STO Express vehicle caught fire in Yongji, Shanxi province, damaging about 5,300 parcels. No casualties were reported.

Between 2023 and 2025, STO Express and its key subsidiaries faced a total of 52 administrative penalties involving amounts exceeding CNY10,000 (USD1,480) each, with the total value topping CNY3 million (USD444,555). The highest fine related to workplace safety was CNY50,000, imposed on the Taizhou transfer station for "failing to completely eliminate relevant safety hazards."

STO Express’ board of directors yesterday approved the termination of a previously announced issuance of CNY3 billion (USD444.6 million) convertible bonds. The proceeds were earmarked for upgrading smart logistics equipment and enhancing the company's trunk transportation network. The Shenzhen Stock Exchange had scheduled a review meeting for Aug. 7.

Founded in 1993, STO Express is one of the earliest private express delivery firms in China. Last year, it handled 26.14 billion parcels, up 15 percent from the year before, and achieved a market share of over 13 percent. As of Dec. 31, its daily throughput had averaged 90 million parcels, with over 5,000 independent outlets and 55,000 service stations and stores.

STO Express' shares [SHE: 002468] fell 2.2 percent to CNY14.01 (USD2.07) today.

Editor: Futura Costaglione