J&T Express is under investigation by the State Post Bureau; it has responded urgently and is carrying out comprehensive rectification.
```
Author | Huang Yu
J&T is currently facing significant regulatory challenges after its IPO.
On June 11, the State Post Bureau released an announcement stating that, since the beginning of this year, companies operating courier businesses using the "J&T Express" trademark, brand name, and courier waybills have experienced frequent production safety incidents, and several safety hazards have been discovered during inspections. J&T Express Co., Ltd. has failed to manage safety production for related enterprises properly and has not implemented unified safety measures as required. The State Post Bureau has initiated an official investigation into J&T Express Co., Ltd. in accordance with the law.
Based on the information released by the State Post Bureau, this investigation was not triggered by a single incident, but rather is a focused accountability measure following a long-term accumulation of safety management issues within the J&T system.
After the announcement, the capital market responded quickly. During trading on June 11, the share price of J&T Express, a company listed on the Hong Kong Stock Exchange, fell by more than 10% at one point, and the midday closing decline was still more than 8%.
J&T responded immediately.
The Chinese branch of J&T told Wallstreetcn that they attach great importance to this investigation, sincerely accept it, and will fully cooperate with regulatory authorities to conduct the investigation in accordance with the law. At the same time, they acknowledged that, as the brand headquarters, there are indeed gaps and shortcomings in implementing unified safety management responsibilities for companies operating under the "J&T Express" trademark, brand name, and waybills.
To address this, J&T has established a special task force led by its safety chief to carry out inspections and rectifications of safety hazards.
The rectification measures are mainly focused on three aspects:
"First, tightening unified management responsibilities by further improving and perfecting the unified safety management system and control standards for all related companies and franchise outlets, and clarifying the four-tier safety responsibility chain from the China headquarters, agency areas, transfer centers, to outlets;
Second, focusing on closed-loop rectification of critical links, conducting comprehensive risk checks on sorting/loading, vehicle passage, equipment maintenance, and personnel operations, archiving, setting rectification deadlines, and ensuring closed-loop management;
Third, continuously strengthening safety safeguards for frontline employees, bolstering safety production education and job safety training, increasing the number of onsite safety officers, protective facilities, and emergency supplies, genuinely improving frontline personnel's safety awareness and self-rescue/mutual rescue ability, and firmly upholding the safety bottom line."
For J&T, which has been rapidly expanding and attempting to transform into a global integrated logistics platform in recent years, being investigated by regulatory authorities is not only an exposure of safety management issues, but also a significant regulatory test since its IPO. It may require greater management resources and operational costs in the future.
To quickly expand at lower cost, J&T has adopted a franchise network expansion model in the Chinese market.
The J&T management is very optimistic about this model. Since 2025, J&T has also started advancing the transition from direct operation to franchising in its home market of Southeast Asia.
In the Q1 earnings conference, J&T's management said that the proportion of franchise operations in Southeast Asia has increased to slightly more than one-third, a slight increase compared to half a year ago. Going forward, they will continue to advance franchising in an orderly manner, but not too rapidly, as suitable franchisees need to be screened and arranged individually.
"As operating entities, franchisees naturally help us reduce costs and increase efficiency at the end-point. On the other hand, franchisees also possess certain localized resources that help us continually expand our market, which aligns with our medium- and long-term profit growth," the J&T management stated.
China is currently J&T's largest single market.
In 2025, J&T's revenue from the Chinese market was about $6.71 billion, accounting for roughly 55.2% of its total revenue.
On the other hand, its growth in the Chinese market has noticeably slowed.
In 2025, J&T handled 22.07 billion parcels in China, up 11.4% year-on-year, but its market share dropped from 11.3% in 2024 to 11.1%, and its adjusted EBIT contribution from the Chinese market fell from $150 million in 2024 to $93.86 million.
In recent years, J&T quickly grabbed market share by relying on a low-cost, high-efficiency operating system. But now, in China's "anti-involution" competition for stock market share, J&T urgently needs to shift from a "price war" to a "value war."
This investigation may indeed serve as a stress test that J&T must face in its transition from "scale first" to "quality first".
Risk Warning and DisclaimerThe market is risky; investment needs caution. This article does not constitute personal investment advice, nor does it consider users' specific investment objectives, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investment based on this article is at the user's own risk. ```