The successive delistings of two major less-than-truckload (LTL) giants are introducing greater uncertainty into the competitive landscape and future direction of the express freight industry. On January 13, Deppon Logistics Co., Ltd. (SH603056) announced its intention to voluntarily withdraw the listing of its A-shares from the Shanghai Stock Exchange via a shareholders' resolution. On the same day, JD LOGISTICS (HK02618) announced a proposal to offer Deppon's shareholders a cash exit option at RMB 19 per share, representing a premium of over 35% to the closing price before the trading halt. This signifies that following JD Logistics' acquisition of a controlling stake in Deppon in 2022, the two companies are formally entering a new phase of deep business and network integration, building upon their capital consolidation. Notably, ANE (Cayman) Inc. (HK09956), listed in Hong Kong, has already announced its intention to privatize and delist on February 9. Since 2025, a trend of privatization and delisting has swept the logistics sector, indicating the industry's entry into a period of profound consolidation. An express delivery expert, Zhao Xiaomin, stated that the successive delistings of Deppon, which operates a direct-sales model, and ANE, which uses a franchise model, mark a symbolic event for China's logistics industry entering a new phase of transformation and upgrading. This signifies that the LTL industry is transitioning from a previous focus on "achieving scale first" to a new stage of "becoming both large and strong," which also heralds the beginning of a fully integrated logistics supply chain era. Going forward, improving service quality and enhancing comprehensive strength will become the primary growth path for the entire logistics industry. On January 14, Deppon's stock opened at the daily limit-up price. By the market close, Deppon's share price was RMB 15.44, giving the company a market capitalization of RMB 15.664 billion. Several veteran executives from Deppon had already departed prior to this announcement. Deppon Logistics was founded in 1996 and listed on the Shanghai Stock Exchange in 2018. It started with LTL services, which remain its traditional core business. In 2022, JD.com announced its takeover of Deppon. Deppon's announcement mentioned that a core reason for this voluntary delisting is the fulfillment of a commitment made by JD Logistics during its earlier acquisition to resolve同业竞争 (intra-industry competition). A domestic subsidiary of JD Logistics, JD Zhuo Feng, committed on September 6, 2022, that within five years of the completion of the previous tender offer, it would resolve the同业竞争 issue between JD Logistics and Deppon through operable means. From the perspective of capital market regulatory logic, a voluntary delisting is the most direct and effective path to thoroughly resolve this issue. The announcement stated that after Deppon's delisting, the company's assets, personnel, and business will not be adversely affected and it will maintain its independent brand and operations. Building on its existing business strengths, Deppon will more fully synergize with the business resources of the JD Logistics system, providing customers with a more comprehensive, integrated, and personalized logistics service experience, and playing a greater role in building a modern logistics service system and serving national strategy. Currently, the company has no plans for major asset restructuring or re-listing. On January 14, JD Logistics announced that, to protect the interests of Deppon's shareholders and as part of the proposed delisting plan, its wholly-owned subsidiary, acting as the buyer, will, upon shareholder approval, immediately offer a cash exit option to Deppon's shareholders to acquire the target Deppon shares (i.e., all remaining Deppon shares, excluding those already owned by the JD group and its concert parties, and any shares to be cancelled by Deppon) at a price of RMB 19.0 per share (a premium of over 35% compared to the pre-halt price of RMB 14 per share). Industry insiders analyzed that the practical benefits of maintaining Deppon's listed status are limited, and delisting will favor full synergy with JD's system resources and comprehensively advance the upgrade of its main business. It is worth mentioning that as early as the 2022 acquisition, JD Logistics stated its future aim was to build a comprehensive parcel delivery and logistics supply chain group. It was noted that in the second half of 2025, several veteran executives from Deppon departed, and the integration with JD deepened further. In July 2025, Deppon Director and General Manager Huang Huabo resigned, succeeded by JD-affiliated executive Wang Yanfeng; in November of the same year, Deppon Chairman Hu Wei resigned, and the board nominated Wang Zhenhui, former CEO of JD Logistics, as a director candidate. Furthermore, Deppon's performance showed fluctuations in 2025. In the first three quarters of 2025, the company achieved revenue of RMB 30.27 billion, a year-on-year increase of nearly 7%; however, its net profit attributable to shareholders was -RMB 277 million, compared to a profit of RMB 517 million in the same period of 2024. Zhao Xiaomin stated that after shedding its listed company status, JD Logistics can more efficiently coordinate Deppon's assets, personnel, and business. Simultaneously, the entire Deppon operation will function within JD Logistics' unified management system, facilitating comprehensive resource reallocation for JD Logistics and avoiding the financial pressures previously faced by Deppon as a listed entity. However, while maintaining brand independence and operational stability, a key market focus will be whether the further deep integration between JD Logistics and Deppon can truly achieve a synergistic effect where "1+1>2," thereby building a more competitive comprehensive logistics entity. The rise of the LTL "delisting wave" signals the industry's entry into an era of value reassessment and hard integration. Following Deppon's trading halt announcement, investor forums buzzed with speculation about potential asset injections or a possible A-share listing for JD Logistics. Regarding such speculation, relevant investment banking professionals were consulted. They indicated that considering regulatory requirements, business logic, and industry realities, these paths are not feasible, and voluntary delisting is currently the optimal solution for Deppon. Industry analysts believe that options like JD Logistics listing on the A-share market or injecting assets do not align with current regulatory policies. "After the full implementation of the registration-based IPO system, overseas-listed Red Chip companies seeking a mainboard A-share listing must meet stringent conditions, which JD Logistics' industry attributes and market capitalization size would struggle to satisfy." It is noteworthy that merger and acquisition activity has been frequent in the express delivery and LTL industry over the past two years, marking a stage of deep integration. Just in 2025, the industry witnessed several M&A and privatization events: JD.com completed the privatization of Dada Nexus for approximately $520 million; STO Express acquired Cainiao's Daniao Logistics for RMB 362 million; and the "first LTL stock listed in Hong Kong," ANE Logistics, announced its planned privatization, expected to delist in February 2026. Nevertheless, with the successive delistings of LTL giants ANE and Deppon, competition in the LTL industry is likely to enter a new phase. In recent years, competition in China's LTL market has intensified. In 2024, new players like Ronghui and Xingman Logistics entered the large-parcel LTL segment; in March 2025, Guangdong Shunxin Express Co., Ltd. and Shenzhen Dekun Supply Chain Co., Ltd. announced a formal strategic cooperation, with Shunxin Express making a strategic investment of RMB 550 million for a stake in Dekun. Additionally, ZTO Freight and SF Express are further competing for market share. Regarding the impact of ANE and Deppon's delistings on LTL market competition, Zhao Xiaomin believes that as some players exit, new listed companies may emerge in the future. Zhao Xiaomin analyzed that the privatizations of the two giants, ANE and Deppon, also offer a reference point for the express delivery industry. "The LTL industry has acted ahead of the curve; it is highly probable that the express delivery industry will follow a similar path in the future. While this may not necessarily mean listed companies delisting, the pace of mergers and acquisitions in the express delivery sector will also accelerate."
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