Tencent-Backed J&T Global Express Swung to Profit in First Half

Dow Jones08-19
 

By Jiahui Huang

 

Tencent-backed J&T Global Express swung to profit in the first half of the year, supported by lower share-based payments and expenses as well as strong overseas sales.

The Chinese logistics company said Monday that its net profit for the first half of the year was $27.6 million, compared with a net loss of $641.0 million a year earlier.

Revenue rose 10% to $4.86 billion during the period, J&T Global said in an earnings report.

The Shanghai-based company said its selling, general and administrative expenses dropped sharply to $381.7 million from $1.77 billion a year earlier. That came after it significantly lowered share-based payments and expenses, it said.

The company's aggressive expansion abroad has yielded some positive results. Revenue in new markets including Saudi Arabia, the United Arab Emirates, Mexico, Brazil and Egypt more than doubled to $291.6 million in the first half of 2024, thanks to rapid growth in parcel volumes, the company said.

J&T Global said its deepening cooperation with both foreign and local e-commerce platforms has supported its sales.

The company's shares finished the day up more than 6% in Hong Kong trading, but are still down 54% so far this year.

 

Write to Jiahui Huang at jiahui.huang@wsj.com

 

(END) Dow Jones Newswires

August 19, 2024 05:47 ET (09:47 GMT)

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