On August 4, 2026, a public notice from the State Post Bureau thrust STO Express into the spotlight. The official announcement stated that since the beginning of the year, enterprises operating express delivery services under the "STO Express" trademark, brand name, and shipping labels have experienced multiple production safety incidents, with safety hazards repeatedly discovered at their facilities. The notice accused STO Express Co., Ltd. of failing to fulfill its safety management responsibilities, as it did not provide unified safety guarantees for its affiliated businesses, leading the State Post Bureau to initiate a formal investigation into the company.
The State Post Bureau's message is clear: all outlets and sorting centers operating under the STO Express brand, whether directly managed or franchised, have been plagued by safety incidents and hazards since 2026. The headquarters of STO Express has failed to implement the unified safety management obligations required of a parent company, prompting regulators to directly hold the headquarters accountable and launch an administrative investigation. This marks the second major express delivery company to be investigated by the State Post Bureau for similar reasons, following the June investigation of J&T Express. The regulatory logic is straightforward: while individual franchise outlets are responsible for safety hazards and incidents, the brand owners that collect franchise fees cannot evade accountability and must also face consequences.
In response to the investigation, STO Express stated that it fully accepts and firmly complies with the decision, acknowledging the "good intentions of strict supervision as deep care" from industry authorities. The company pledged to take immediate corrective actions and fully cooperate with all investigations. However, the investigation has immediately impacted the company's operations. In March of this year, STO Express launched a convertible bond financing plan worth up to 30 billion yuan, which was just one step away from being reviewed by the stock exchange. The latest version of the listing application materials was recently updated and submitted. The funds were originally earmarked for two major projects: 21.37 billion yuan for upgrading smart logistics equipment and 8.63 billion yuan for enhancing trunk line transportation networks. Road transport safety accidents have always been a significant risk for all express delivery companies, including STO Express. The application documents stated that improving the trunk line transportation network would "enhance transportation stability and safety." However, due to the investigation, STO Express terminated this large-scale financing plan on August 5 and withdrew all application materials.
STO Express has been fined multiple times for safety incidents. In the application documents for the convertible bond plan, the company disclosed that from 2023 to 2025, it and its major subsidiaries faced 52 administrative penalties, including safety-related fines, totaling 3.045 million yuan. Among these, 27 were safety-related administrative penalties, amounting to 493,800 yuan. These penalties were concentrated in three basic areas: "failure to take measures to eliminate accident hazards," "use of safety equipment not meeting national standards or industry standards," and "failure to provide safety education and training to employees as required." The company's financial data also hints at underlying issues. From 2023 to 2025, the company's fine expenses increased year by year, reaching 17.2512 million yuan, 18.7013 million yuan, and 21.808 million yuan, respectively. These fines represent penalties imposed by administrative regulatory authorities for corporate violations, constituting compliance costs. Litigation and accident compensation expenses showed volatility, with 13.2212 million yuan in 2023, dropping to 2.8273 million yuan in 2024, and rising to 7.838 million yuan in 2025.
Media and regulatory bodies have also disclosed related safety incidents. In the summer of 2024, a telescopic conveyor belt collapsed at STO Express's Heilongjiang Provincial Sorting Center, directly resulting in the death of one employee. Following the incident, the State Post Bureau conducted an administrative interview with STO Express, pointing out that the accident exposed serious deficiencies in the company's safety development philosophy, inadequate implementation of production safety responsibilities and headquarters' unified safety management responsibilities, improper installation and use of equipment like telescopic conveyors, lack of standardized safety management, insufficient rectification of "four no" issues in processing sites, and a lack of safety education and training for employees. STO Express again promised to learn from the incident, immediately initiate rectification and hazard investigation, and resolutely maintain safety standards. Local regulators also conducted interviews with STO Express. For example, on July 10, 2024, the Suzhou Postal Administration interviewed Suzhou STO Logistics Co., Ltd., noting that the company had experienced two consecutive traffic safety accidents, revealing serious management deficiencies in vehicle management and employee training. On January 9, 2026, the Suzhou Postal Administration directly interviewed STO Express headquarters, reporting continuous violations and regulatory evasion in the Wujiang District of Jiangsu Province. The Suzhou regulator stated: "In 2025, three violations were confirmed, including two instances of operating beyond the designated regional scope. Currently, the company's business personnel are using more covert methods to illegally collect packages in Wujiang, severely disrupting the local express delivery market order and evading the source supervision of delivery safety, posing significant risks." STO Express headquarters representatives at that time vowed to take strong measures from the headquarters level to conduct a serious rectification. Twelve days after being interviewed by the Suzhou Postal Administration, on January 21, 2026, STO Express held a company-wide production safety conference. The meeting reviewed the year's safety efforts and deployed safety tasks for 2026, awarding prizes for safety advanced units, individuals, and special projects. Company President and Safety Committee Director Wang Wenbin stated at the meeting: "Over the past year, the concept of 'safety integrated into the DNA of STO people' has taken root and sprouted." However, just seven months later, the State Post Bureau's investigation notice revealed serious gaps in the company's safety management.
In 2025, STO Express completed a delivery volume of 26.139 billion parcels, a year-on-year increase of 15.00%, with a market share of 13.14%, up 0.16 percentage points. Its business scale ranks third in the industry. The 2025 financial report shows that the company achieved operating revenue of 55.586 billion yuan, a 17.84% increase over the previous year, and a net profit attributable to the parent company after deducting non-recurring gains and losses of 1.395 billion yuan, a 37.22% increase. The first half of 2026 performance forecast indicates a net profit of approximately 950 million to 1.06 billion yuan, a significant year-on-year increase of 117.74% to 142.95%. One key reason for the performance improvement is the regulatory emphasis on consistently strengthening industry governance, deeply rectifying "involution" competition, and achieving a rational recovery in industry pricing. In June 2026, the single-ticket revenue of STO Express services was 2.11 yuan, a 6.03% increase year-on-year. Single-ticket revenue refers to the average operating income a courier company receives per package collected, serving as a core indicator for measuring pricing and profitability.
Of course, the key pillar of STO Express is its business model. Founded in 1993, STO Express is one of the earliest private express delivery companies in China and pioneered the franchise model. Currently, the company operates a "direct-managed sorting centers, franchised outlets" model. Given the central hub position of sorting centers, the company has increased investment in infrastructure like sorting centers, optimizing the transportation network and increasing the proportion of directly managed centers. For end outlets, it adopts the franchise model to continuously expand regional coverage. The benefits of the franchise system are evident: the headquarters controls the brand, shipping labels, trunk transportation, and sorting centers, while end outlets are independently invested and operated by franchisees. This allows the brand to achieve asset-light expansion, low-cost network coverage, and rapid market share capture. During the explosive growth of e-commerce, the franchise system helped Chinese express delivery companies rise quickly. However, like other industries using the franchise model, express delivery companies must also bear the drawbacks. Safety, as a cost item that cannot directly generate revenue, may lead profit-and-loss-responsible franchise outlets to cut safety spending. Faced with a massive number of end outlets nationwide, achieving comprehensive management coverage from headquarters is extremely costly and challenging. As reported by Jiupai News: "The multi-layer subcontracting franchise model also transmits production safety risks. Some franchisees, to reduce operating costs, cut investments in fire protection facilities, equipment maintenance, and frontline personnel safety training. The safety standards set by headquarters, passed down through provincial, city, and county levels, weaken in execution at end outlets." J&T Express, which was also investigated, has been cited by media as a case study. Kankan News, citing public data, reported that from 2023 to 2025, J&T Express had a cumulative 57 work-related deaths, and in the first half of 2026, its local outlets were repeatedly fined for safety-related issues. The most socially impactful safety incident was the 2013 "deadly delivery" event, where a franchisee of YTO Express in Wuhan illegally collected highly toxic chemical methyl fluoroacetate. During transit, the package leaked, contaminating nearby parcels, and ultimately resulting in one death and nine poisonings. Public criticism focused on the company's disregard for human life, prompting nationwide regulatory inspections. According to STO Express's annual report, as of the end of 2025, the company had 5,075 independent franchise outlets and 98,000 service stations and stores, with approximately 248,000 regular couriers. Such a large, dispersed end network naturally increases the difficulty of safety inspections and policy implementation, making various safety hazards more likely to remain hidden.
STO Express seems to have long recognized the potential safety risks within its organizational system. On January 21, 2026, at the company-wide production safety conference, President Wang Wenbin stated: "Five years ago, we proposed a 'three-in-one' approach for headquarters, provincial regions, and outlets. This is not only a business requirement but also a safety requirement. In the new year, we must effectively manage the safety of franchise outlets!" He also mentioned: "We need to increase support for outlets—not only providing solid training but also helping them establish a practical management system, enabling every outlet to have the capability and methods to safeguard safety. This includes video inspections, regular visits, identifying hazards, filling gaps, and resolving risks in their infancy." Now, facing the regulatory investigation, STO Express has also outlined specific rectification plans: the company's safety committee has launched a special rectification effort, including a comprehensive review of the company's safety system, restructuring the safety organization, strengthening business safety responsibilities, implementing provincial-level territorial responsibilities, adding safety process assessments, and reinforcing a "one-vote veto" for safety outcomes. The company insists on integrated management of directly managed, franchise, and supplier entities to comprehensively improve the safety compliance level of the entire network.
Production safety is not a choice but a legal obligation that enterprises must fulfill. However, some companies treat safety as an additional cost, harboring the mindset that as long as there are no major casualty accidents, minor hazards can be compromised. They then trade safety costs for profits and scale advantages, reducing safety management to superficial efforts. Past accidents have repeatedly shown that all such perfunctory measures can ultimately become the trigger for safety incidents. The safety costs saved in the short term will eventually backfire on the company in the form of fines, shutdowns, business halts, brand devaluation, and criminal penalties. The investigation into STO Express serves as a wake-up call for the entire industry: no matter how fast a company grows or how large its market share, it must always adhere to the bottom line of safety.
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