At 9 a.m. on October 27, Jitu Express was officially listed on the main board of the Hong Kong Stock Exchange with the stock code 1519.HK, HK$12 per share, and a market value of over HK$100 billion. The net proceeds raised from the offering were approximately HK$3.528 billion. According to the prospectus, the net proceeds raised from this offering are approximately HK$3.53 billion, of which approximately 30% will be used to expand the logistics network, upgrade infrastructure and strengthen sorting and warehousing capabilities, approximately 30% will be used to develop new markets and expand service scope, approximately 30% will be used for research and development and technological innovation, and approximately 10% will be used for general corporate purposes and working capital needs.
Jitu Express was founded in Indonesia in 2015 and quickly captured the Southeast Asian market. According to statistics from third-party organizations, based on parcel volume in 2022, Jitu’s global annual parcel volume will reach 14.6 billion, making it the number one express delivery operator in Southeast Asia.
Jitu Express entered China in 2020. Data shows that from 2020 to 2022, the volume of Jitu Express’ express parcels in China was 2.1 billion, 8.3 billion, and 12 billion respectively. In the first half of 2023, Jitu's global parcel volume increased by 16.7% year-on-year to 7.967 billion pieces, of which China's parcel volume was 6.447 billion pieces, a year-on-year increase of 15.1%; Southeast Asia's parcel volume was 1.438 billion pieces, a year-on-year increase of 18.4%.
In terms of financial data, from 2020 to 2022, Jitu’s total revenue was US$1.535 billion, US$4.852 billion, and US$7.267 billion respectively. They generated a net loss of US$664 million, a net loss of US$6.2 billion and a net profit of US$1.6 billion respectively. In the first half of 2023, Jitu's revenue was US$4.03 billion, a year-on-year increase of 18.45%; its net loss was US$667 million, turning from profit to loss year-on-year. The adjusted loss under non-IFRS was US$264 million, a year-on-year decrease of 36.8%, and the adjusted EBITDA was US$39 million, turning a loss into a profit year-on-year. During the same period, Jitu recorded a gross profit of US$194 million, and its gross profit margin increased to 4.8%.
According to the prospectus, this time Jitu Express entered the capital market and received support from many well-known cornerstone investors including Boyu Capital, D1 Capital, GLP, Sequoia, Temasek, and Hillhouse, subscribing for approximately US$200 million in shares. From July 15, 2017 to May 17, 2023, the company conducted a total of seven rounds of financing, with a total financing amount of approximately US$5.57 billion. According to the prospectus, the equity structure includes Boyu Holdings, ATM Capital, Hillhouse, and Sequoia holding 6.1%, 5.49%, 2%, and 1.62% respectively.
As the third largest institutional shareholder of Jitu, Qu Tian, founder of ATM Capital, said: "My heartfelt congratulations to Jitu Express for its successful listing today! As the earliest institutional investors, we have witnessed Jitu's continuous growth from Southeast Asia and its growth into a super unicorn. Now, express delivery companies that adapt to the new digital economic environment have embraced global opportunities, and Jitu is currently the only logistics company with global local distribution capabilities. A new generation of global companies is emerging, and ATM Capital will continue to discover and accompany the next super unicorn in Southeast Asia."
Having been deeply involved in Southeast Asia for many years, Qu Tian observed that previously successful international companies were mainly concentrated in the birthplaces of China, the United States, Japan, South Korea and Europe, and Indonesia will be the next birthplace. For example, Jitu and Shopee both started to go global from Indonesia. "In the future, Southeast Asia will have the opportunity to give birth to the next company worth tens of billions or even hundreds of billions of dollars." Qu Tian said. (Yan Yan)