J&T Express Acquires Chinese Logistics Company Fengweng Express

Indonesian logistics service provider J&T Express announced the acquisition of Fengwang Information, a subsidiary of SF Holding Co., Ltd, which operates Fengwang Express. The two companies have signed a Share Transfer Agreement and J&T Express will acquire 100% share rights worth ¥1.183 billion or more than IDR 2,5 trillion.

SF is China's largest integrated logistics service provider, providing end-to-end one-stop supply chain services for domestic and international routes. The company is committed to building a digital supply chain ecology and becoming a leader in smart supply chains globally.

Under SF Holdings, the Fengwang Express network offers services to customers E-commerce and has covered about 27 provinces, municipalities, and autonomous regions across China. Last year alone, this service managed to record revenue of more than ¥3,2 billion or around IDR 6,8 trillion.

According to the company's website, in Indonesia alone, the company already has 100 gateway center with professional equipment, more than 4 thousand operating points and 30 thousand trained human resources, and thousands of fleets to support services messenger inter-city, inter-provincial and cross-island.

Based on information from J&T Express, this is a significant step in the express delivery sector E-commerce since the company expanded into the Chinese market in 2020. Previously, the company had also succeeded in acquiring Best Inc.'s express business. in China by the end of 2021.

Adhering to its "customer-oriented and efficiency-based" mission, the company expressed its commitment to continuously optimize the service experience as part of its focus on the express delivery service industry e-commerce.

In an official statement, J&T said, "This acquisition will increase J&T Express' integrated service capabilities. This step is expected to encourage the development of a high-quality industry that will enable it to further increase its competitive advantage in the shipping sector E-commerce and contribute to the development of high-quality industry,"

J&T Express is committed to providing customers with integrated logistics solutions through intelligent infrastructure and digital logistics networks, as part of its global strategy to connect the world with greater efficiency and bring logistics benefits to all.

J&T Express plan

Founded in 2015 by Jet Lee and Tony Chen, J&T Express has expanded its business wings outside Asia. The J&T Express network now reaches thirteen countries, including Indonesia, Vietnam, Malaysia, Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, UAE, Mexico, Brazil and Egypt.

In 2021, the company reported obtained a funding round of $2,5 billion or the equivalent of 35,6 trillion Rupiah. This funding brings J&T Express's valuation to $20 billion (around IDR 285 trillion), meaning it has already held the title "decacorn". This is said to be part of J&T's plan to take the floor on the stock exchange.

Based on a number of sources, the company plans to target fresh funds of between $1 billion and $2 billion (between Rp. 15,1 trillion-Rp. 30,3 trillion). Source Reuters Those who knew about the news said that actually J&T Express planned to have an IPO last year, but it was postponed due to uncertain market conditions.

If this corporate action is carried out, it is predicted that this IPO will be the largest in Hong Kong in 2023. During 2021-2022, the selling value of IPO shares fell 74% to $7,4 billion in 2022 from $28,17 billion in 2021. The trigger factor, according to Refinitv, due to the global slowdown in capital markets as a result of rising interest rates, high inflation, and ongoing geopolitical tensions.

In Indonesia itself, J&T competes closely with a number of logistics startups, including SiFast and Ninja Xpress, both of which take advantage of the trend E-commerce to accelerate its business. According to J&T CEO Robin Lo at that time, logistics services from business E-commerce contributed 50% to the company's revenue in 2017.