J& Prospectus 2023 (Another Version)

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Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for
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Application Proof of
J&T Global Express Limited

極兔速遞環球有限公司
(the “Company”)
(A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability)
WARNING
The publication of this Application Proof is required by The Stock Exchange of Hong Kong Limited (the “Stock
Exchange”) and the Securities and Futures Commission (the “Commission”) solely for the purpose of providing
information to the public in Hong Kong.
This Application Proof is in draft form. The information contained in it is incomplete and is subject to change which
can be material. By viewing this document, you acknowledge, accept and agree with the Company, its sponsors,
overall coordinators, advisers or members of the underwriting syndicate that:
(a) this document is only for the purpose of providing information about the Company to the public in Hong Kong
and not for any other purposes. No investment decision should be based on the information contained in this
document;
(b) the publication of this document or supplemental, revised or replacement pages on the Stock Exchange’s
website does not give rise to any obligation of the Company, its sponsors, overall coordinators, advisers or
members of the underwriting syndicate to proceed with an offering in Hong Kong or any other jurisdiction.
There is no assurance that the Company will proceed with any offering;
(c) the contents of this document or supplemental, revised or replacement pages may or may not be replicated in
full or in part in the actual final listing document;
(d) this document is not the final listing document and may be updated or revised by the Company from time to
time in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited;
(e) this document does not constitute a prospectus, offering circular, notice, circular, brochure or advertisement
offering to sell any securities to the public in any jurisdiction, nor is it an invitation to the public to make offers
to subscribe for or purchase any securities, nor is it calculated to invite offers by the public to subscribe for
or purchase any securities;
(f) this document must not be regarded as an inducement to subscribe for or purchase any securities, and no such
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(g) neither the Company nor any of its affiliates, sponsors, overall coordinators, advisers or members of the
underwriting syndicate is offering, or is soliciting offers to buy, any securities in any jurisdiction through the
publication of this document;
(h) no application for the securities mentioned in this document should be made by any person nor would such
application be accepted;
(i) the Company has not and will not register the securities referred to in this document under the United States
Securities Act of 1933, as amended, or any state securities laws of the United States;
(j) as there may be legal restrictions on the distribution of this document or dissemination of any information
contained in this document, you agree to inform yourself about and observe any such restrictions applicable
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the Commission may accept, return or reject the application for the subject public offering and/or listing.
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reminded to make their investment decisions solely based on the Company’s prospectus registered with the
Registrar of Companies in Hong Kong, copies of which will be made available to the public during the offer
period.
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT.
IMPORTANT
IMPORTANT: If you are in any doubt about any of the contents of this document, you should seek independent professional advice.
J&T Global Express Limited

極兔速遞環球有限公司
(A company controlled through weighted voting rights and incorporated in
the Cayman Islands with limited liability)
[REDACTED]
Number of [REDACTED] under : [REDACTED] (subject to the
the [REDACTED] [REDACTED])
Number of [REDACTED] : [REDACTED] (subject to adjustment)
Number of [REDACTED] : [REDACTED] (subject to adjustment
and the [REDACTED])
Maximum [REDACTED] : HK$[REDACTED] per [REDACTED],
plus brokerage of 1%, AFRC
transaction levy of 0.00015%, SFC
transaction levy of 0.0027% and Stock
Exchange trading fee of 0.00565%
(payable in full on [REDACTED]
dollars and subject to refund)
Nominal value : US$[0.000002] per Share
[REDACTED]
Joint Sponsors and [REDACTED]
[REDACTED]
[●]
[REDACTED] and [REDACTED]

[●]
Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this document, make
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A copy of this document, having attached thereto the documents specified in “Documents Delivered to the Registrar of Companies and on Display” in Appendix VI to this document, has been registered by the
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The [REDACTED] is expected to be determined by agreement between the [REDACTED] (for themselves and on behalf of the [REDACTED]) and our Company on or around [REDACTED] and, in any event,
on or before [REDACTED]. The [REDACTED] will not be more than HK$[REDACTED] per [REDACTED] and is expected to be not less than HK$[REDACTED] per [REDACTED], unless otherwise
announced. Applicants under the [REDACTED] are required to pay, on [REDACTED], the maximum [REDACTED] of HK$[REDACTED] per [REDACTED], plus brokerage of 1%, AFRC transaction levy
of 0.00015%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.00565%, subject to refund if the [REDACTED] as finally determined is less than HK$[REDACTED] per [REDACTED].
[REDACTED]
Prior to making an investment decision, prospective investors should consider carefully all of the information set out in this document, including the risk factors set out in “Risk Factors.”
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[REDACTED] – [REDACTED] – [REDACTED].” It is important that you refer to that section for further details.
The [REDACTED] have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States and may not be offered, sold, pledged or transferred within the United
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U.S. Securities Act or other exemption(s) from registration under the U.S. Securities Act or outside the United States in reliance on Regulation S under the U.S. Securities Act.
The Company will be controlled through weighted voting rights upon [REDACTED]. Prospective investors should be aware of the potential risks of investing in a company with a WVR structure, in particular
that the WVR Beneficiary, whose interests may not necessarily be aligned with those of our Shareholders as a whole, will be in a position to exert significant influence over the outcome of Shareholders’
resolutions, irrespective of how other Shareholders vote. For further information about the risks associated with our WVR structure, see “Risk Factors – Risks Related to the [REDACTED].” Prospective investors
should make the decision to invest in the Company only after due and careful consideration.
[REDACTED]
[REDACTED]
EXPECTED TIMETABLE(1)
[REDACTED]
–i–
[REDACTED]
– ii –
[REDACTED]
– iii –
[REDACTED]
– iv –
CONTENTS
IMPORTANT NOTICE TO PROSPECTIVE INVESTORS
This document is issued by us solely in connection with the [REDACTED] and the
[REDACTED] and does not constitute an [REDACTED] to sell or a solicitation of an
[REDACTED] to buy any security other than the [REDACTED] by this document
pursuant to the [REDACTED]. This document may not be used for the purpose of, and
does not constitute, an [REDACTED] or invitation in any other jurisdiction or in any
other circumstances. No action has been taken to permit a [REDACTED] of the
[REDACTED] in any jurisdiction other than Hong Kong and no action has been taken to
permit the distribution of this document in any jurisdiction other than Hong Kong. The
distribution of this document and the [REDACTED] of the [REDACTED] in other
jurisdictions are subject to restrictions and may not be made except as permitted under the
applicable securities laws of such jurisdictions pursuant to registration with or
authorization by the relevant securities regulatory authorities or an exemption therefrom.
You should rely only on the information contained in this document and the [REDACTED]
to make your [REDACTED] decision. We have not authorized anyone to provide you with
information that is different from what is contained in this document. Any information or
representation not made in this document must not be relied on by you as having been
authorized by us, the Joint Sponsors, the [REDACTED], the [REDACTED], the
[REDACTED], the [REDACTED] and [REDACTED], the [REDACTED], any of our or
their respective directors or any other person or party involved in the [REDACTED].
Page
IMPORTANT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [●]
EXPECTED TIMETABLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
GLOSSARY OF TECHNICAL TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
WAIVERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
INFORMATION ABOUT THIS DOCUMENT AND THE [REDACTED] . . . . . . . 91
DIRECTORS AND PARTIES INVOLVED IN THE [REDACTED] . . . . . . . . . . . . 95
CORPORATE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
–v–
CONTENTS
INDUSTRY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
HISTORY AND CORPORATE STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
CONTRACTUAL ARRANGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
CONTINUING CONNECTED TRANSACTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 230
DIRECTORS AND SENIOR MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
RELATIONSHIP WITH THE CONTROLLING SHAREHOLDERS . . . . . . . . . . . 248
SHARE CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
SUBSTANTIAL SHAREHOLDERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
FUTURE PLANS AND [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
[REDACTED]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323
STRUCTURE OF THE [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
HOW TO APPLY FOR [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
APPENDIX I ACCOUNTANT’S REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . I-1
APPENDIX II [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1
APPENDIX III REGULATORY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . III-1
APPENDIX IV SUMMARY OF THE CONSTITUTION OF

OUR COMPANY AND THE COMPANY LAWS OF
THE CAYMAN ISLANDS . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1
APPENDIX V STATUTORY AND GENERAL INFORMATION . . . . . . . . . . V-1
APPENDIX VI DOCUMENTS DELIVERED TO THE REGISTRAR OF

COMPANIES AND ON DISPLAY . . . . . . . . . . . . . . . . . . . . VI-1
– vi –
SUMMARY
This summary aims to give you an overview of the information contained in this
document. As this is a summary, it does not contain all the information that may be
important to you. You should read the entire document before you decide to invest in the
[REDACTED].
There are risks associated with any investment. Some of the particular risks in investing
in the [REDACTED] are set out in “Risk Factors.” You should read that section
carefully before you decide to invest in the [REDACTED].
BUSINESS OVERVIEW
We are a global logistics service provider with the leading express delivery business in
Southeast Asia, a competitive position in China and an expanding footprint in Latin America
and the Middle East. Our express delivery services span 13 countries, which include the largest
and fastest-growing emerging markets globally. We commenced operations in 2015 in
Indonesia, and leveraged our success there to expand into other Southeast Asian countries,
including Vietnam, Malaysia, the Philippines, Thailand, Cambodia and Singapore, and became
the number one express delivery operator in Southeast Asia, with a 22.5% market share in 2022
by parcel volume, according to Frost & Sullivan. In Southeast Asia, we handled 2,513.2 million
domestic parcels in 2022, representing a CAGR of 47.6% from 1,153.8 million in 2020. We
tapped into the express delivery market in China in 2020, and handled 12,025.6 million
domestic parcels in 2022, achieving a market share of 10.9% by parcel volume, according to
Frost & Sullivan. Today, we have full network coverage across the seven Southeast Asia
countries and a geographic coverage of over 98% by counties and districts in China. We are
also the first Asian express delivery operator of scale to have expanded into Saudi Arabia,
UAE, Mexico, Brazil and Egypt, according to Frost & Sullivan, supporting our e-commerce
partners as they expand into new markets. To better capture cross-border logistics opportunities
and enhance the connectivity among the countries we serve, we have expanded our
cross-border logistics services, which include small parcels, freight forwarding and
warehousing solutions.
China
2020
Thailand
2019 Mexico
2022
Egypt The Philippines
2022 2019
Brazil
UAE Cambodia Vietnam 2022
2022 2019 2018
Saudi Arabia Singapore

2022 2020
Indonesia Malaysia
2015 2018
We provide express delivery solutions to leading e-commerce platforms enabling the rapid
development of our partners as they expand into new markets. We have historically helped
e-commerce platforms access regions that were underserved by traditional logistics service
providers. We provide comprehensive express delivery services to merchants and consumers on
leading e-commerce platforms, such as Shopee, Lazada, Tokopedia, Pinduoduo, Taobao, Tmall,
–1–
SUMMARY
Shein and Noon, as well as short video and live streaming platforms, such as TikTok, Douyin
and Kuaishou. As e-commerce continues to evolve, we believe that we are well positioned to
enable further development of the e-commerce markets in which we operate by leveraging our
broad network, extensive know-how and strong execution capabilities. We expect to provide
integrated solutions to serve the rapid growth in cross-border logistics with our ever expanding
global footprint.
No. 1 in Southeast Asia 14.6Bn Parcels Delivered Partnering with Leading

22.5% Market Share, in 2022 E-commerce Platforms
112.3% CAGR 2020-2022 in Markets where We
> 3 Times of No.2(1)
Operate
Unique and Highly Scalable Proprietary and Innovative US$7.3Bn Revenue in 2022
JMS System to Empower
Regional Sponsor Model 117.6% CAGR 2020-2022
Global Operations
with Aligned Interests and Spanning 13 Countries
Shared Culture
Note:
1. By parcel volume in 2022, according to Frost & Sullivan
Southeast Asia, China and the New Markets where we operate present us with significant
growth opportunities:
Southeast Asia China New Markets

In US$ billion In US$ billion In US$ billion
17.9% 29.8% 29.1% 35.6% 14.6% 27.5%
E-commerce
Retail CAGR: 10.3% CAGR: 22.6%
Transaction CAGR: 18.6% 2,957.2
373.6 1,997.4 243.1
Value
188.6 107.6
2023E 2027E 2023E 2027E 2023E 2027E
In billion In billion In billion

Total
Volume of CAGR: 15.5% CAGR: 10.7% CAGR: 17.6%
Parcels
23.5 188.0 7.1
125.1
13.2 3.7
2023E 2027E 2023E 2027E 2023E 2027E
E-commerce penetration rate
Source: Frost & Sullivan
–2–
SUMMARY
Shift to e-commerce. E-commerce retail has seen significant growth in Southeast Asia in terms
of transaction value from US$38.3 billion in 2018 to US$154.8 billion in 2022, representing
a CAGR of 41.8%. Improvements in Internet infrastructure in Southeast Asia will likely further
support the transition from offline to online retail channels. According to Frost & Sullivan,
e-commerce retail transaction value in Southeast Asia is expected to grow from US$188.6
billion in 2023 to US$373.6 billion in 2027, representing a CAGR of 18.6%, with e-commerce
penetration rate increasing from 17.9% in 2023 to 29.8% in 2027. In China, e-commerce retail
transaction value increased from US$1,058.5 billion in 2018 to US$1,777.1 billion in 2022,
representing a CAGR of 13.8%, and is expected to grow from US$1,997.4 billion in 2023 to
US$2,957.2 billion in 2027, representing a CAGR of 10.3%, according to Frost & Sullivan,
with the e-commerce penetration rate increasing from 29.1% in 2023 to 35.6% in 2027. In
addition, we anticipate that the rise of social e-commerce including short video and live
streaming will drive additional e-commerce transactions and demand for cost-effective
logistics services. According to Frost & Sullivan, the social e-commerce retail market in
Southeast Asia grew rapidly from US$9.2 billion in 2018 to US$60.2 billion in 2022,
representing a CAGR of 59.9%, and is expected to reach US$179.8 billion in 2027 from
US$80.7 billion in 2023, representing a CAGR of 22.2% from 2023 to 2027. The social
e-commerce retail market in China also grew rapidly from US$98.5 billion in 2018 to
US$626.5 billion in 2022, representing a CAGR of 58.8%, and is expected to reach US$1,660.4
billion in 2027 from US$839.7 billion in 2023, representing a CAGR of 18.6%. The social
e-commerce penetration rate is expected to reach 48.1% and 56.1% in Southeast Asia and
China in 2027, respectively.
Demand for express delivery services. Benefiting from the significant e-commerce market,
Southeast Asia and China combined form the largest and fastest-growing express delivery
service market in the world, according to Frost & Sullivan. In Southeast Asia, total volume of
parcels shipped rapidly increased from 3.3 billion in 2018 to 11.1 billion in 2022, representing
a CAGR of 36.0%, and is projected to increase from 13.2 billion in 2023 to 23.5 billion in
2027, representing a CAGR of 15.5%, while in China the volume increased from 50.7 billion
in 2018 to 110.6 billion in 2022, representing a CAGR of 21.5%, and is projected to increase
from 125.1 billion in 2023 to 188.0 billion in 2027, representing a CAGR of 10.7%, according
to Frost & Sullivan.
Demand from the New Markets. In 2022, we strategically expanded into other large and
high-growth markets around the world, including Saudi Arabia, UAE, Mexico, Brazil and
Egypt, which we refer to as the New Markets. These markets have burgeoning e-commerce
industries and are undergoing a pivotal transition as consumer shift from traditional retail to
online shopping. According to Frost & Sullivan, e-commerce retail transaction value of the
New Markets in aggregate reached US$85.7 billion in 2022 at a CAGR of 27.5% from 2018
and is expected to further grow to US$243.1 billion in 2027 at a CAGR of 22.6% from 2023.
Driven by the growth of e-commerce retail markets and e-commerce penetration rate, express
delivery parcel volume in these markets in aggregate reached 3,095.8 million in 2022 and is
expected to further grow to 7,137.7 million in 2027 at a CAGR of 17.6% from 2023.
Demand for cross-border services. Capitalizing on our success in each of the markets in which
we operate, we are developing cross-border services to connect these markets to the global
e-commerce network. In Southeast Asia and China, the total cross-border e-commerce retail
markets by transaction value increased from US$213.8 billion in 2018 to US$492.2 billion in
2022, representing a CAGR of 23.2%, and are expected to increase from US$605.2 billion in
2023 to US$1,257.0 billion in 2027, representing a CAGR of 20.0%, according to Frost &
Sullivan. We believe the rise of the cross-border e-commerce market will drive the growth of
the cross-border logistics market. The global cross-border logistics market is expected to reach
US$680.7 billion in 2027 from US$456.1 billion in 2023, representing a CAGR of 10.5%,
according to Frost & Sullivan.
–3–
SUMMARY
We have built an adaptive business model by leveraging our partners whom we refer to as our
regional sponsors, and we are currently the only player in Southeast Asia and China that has
successfully adopted this model at scale. By employing this model in geographically diverse
countries with unique operational challenges in each of the countries where we provide express
delivery services, we have expanded rapidly, serving a geographically dispersed base of
merchants and consumers across multiple regions and enabling the growth of e-commerce
transactions. Regional sponsors play an important role by working with our country
headquarters to execute our strategies in various markets. Our regional sponsors typically hold
equity interest in our country headquarters and/or regional operating entities. Our country
headquarters formulate the overall operational strategy and execution plans in each market,
including density and geographic locations of sorting centers, line-haul routes and network
capacity, of which regional sponsors assume the role of managing regional daily operations.
Regional sponsors manage our network partners through the relevant regional operating
entities. Regional sponsors in certain locations also undertake the management of directly
operated pickup and delivery outlets and service stations through the relevant regional
operating entities. The management responsibilities of regional sponsors encompass the set-up
of local operations, sales and marketing, customer service, and employee and network partner
training.
Country Headquarters Strengths of Regional Sponsor Model
• Formulate the overall operational

strategy and execution plans 9 Maintain long-term cooperation with
regional sponsors to share successes
with various incentive arrangements
Aligned Interest based on performance
and Culture
Regional Sponsors 9 Able to adjust local operations

according to the optimal approach
in each market and successfully
• Entrepreneurial in nature and the culture carriers replicated this model in multiple
Highly Flexible
• Local and regional knowledge and business experience and Adaptive
jurisdictions
• Alignment of interests including holding equity interests in
headquarters and/or regional operating entities
9 Overcome multiple operational

challenges specific to each market
Strong together with our global integrated
Operational technology system and enhance
Control customization of services
Network Partners Directly Operated Outlets
and Service Stations
■ Network partners own
9 Reduce unit costs and increase
and operate pick-up and ■ Regional operating entities operating leverage without the need
delivery outlets and service own pick-up and delivery to invest a substantial amount of
Lower Cost
stations outlets and service stations capital
and Capital
Requirement
As of December 31, 2022, we had a portfolio of 104 regional sponsors and approximately 9,600
network partners. We operated 280 sorting centers and over 8,100 line-haul vehicles, including
more than 4,020 self-owned line-haul vehicles, with approximately 3,800 line-haul routes, as
well as over 21,000 pickup and delivery outlets as of December 31, 2022. Through
collaboration with international and local partners, we also provide cross-border services
across Asia, North America, South America, Europe, Africa and Oceania.
–4–
SUMMARY
We have experienced significant growth since we commenced operations in Indonesia in 2015

and over the Track Record Period. In Southeast Asia, we experienced continuous growth in
parcel volume and were able to achieve positive adjusted EBITDA growth from 2020 to 2022.
We expanded into the China market in 2020 and have been focusing on consolidating our
market position in China. The following table sets forth our revenue, adjusted loss and adjusted
EBITDA in total amount and by geographic segment for the periods indicated:
Year ended December 31,

2020 2021 2022
(in US$ thousands)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,535,425 4,851,800 7,267,428

Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . 1,046,504 2,377,544 2,381,726
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478,847 2,181,368 4,096,177
Others (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,074 292,888 789,525
Non-IFRS measures (unaudited)

Adjusted loss(1) . . . . . . . . . . . . . . . . . . . . . . . . . (475,861) (911,347) (798,649)
Adjusted EBITDA(1) . . . . . . . . . . . . . . . . . . . . . . (321,163) (528,131) (204,442)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . 266,561 427,436 331,582
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (616,227) (939,695) (334,906)
Others (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,652 (14,028) (168,789)
Unallocated(3) . . . . . . . . . . . . . . . . . . . . . . . . . 26,851 (1,844) (32,329)
Notes:
(1) A non-IFRS measure. See “Financial Information – Non-IFRS Measures” for more details.
(2) Includes our cross-border services and domestic express delivery services in the New Markets.
(3) Represents certain expenses, gains and losses, including general and administrative expenses, and exchange
gains and losses incurred at the group and holding company levels.
During the Track Record Period, the growth of our parcel volume was primarily driven by the
continued expansion of our network, an increase in the number of merchants on e-commerce
platforms that used our services and the increased demand for express delivery services in the
markets in which we operate. Our global annual parcel volume in 2022 was 14.6 billion,
representing an increase of 39.0% from 10.5 billion in 2021 and an increase of 350.6% from
3.2 billion in 2020. The table below illustrates the growth in our parcel volume in Southeast
Asia and China for the periods indicated, as well as the 2022 market share in these geographic
segments:
2022
2020–2022 Market
2020 2021 2022 CAGR Share
(in millions)
Southeast Asia . . . . . . . . . . . . 1,153.8 2,160.8 2,513.2 47.6% 22.5%

China. . . . . . . . . . . . . . . . . . 2,083.5 8,334.3(1) 12,025.6 140.2% 10.9%
Note:
(1) On December 8, 2021, we completed the acquisition of BEST Express China from BEST and consolidated the
results of BEST Express China since December 8, 2021.
–5–
SUMMARY
OUR STRENGTHS
We believe that the following competitive strengths contribute to our success and differentiate
us from our competitors:
• A global express delivery operator with the leading position in Southeast Asia, serving
largest and fastest-growing emerging markets;
• Independent e-commerce enabler, connecting marketplaces and merchants to new markets

and consumers;
• Scalable regional sponsor model that promotes rapid penetration and growth in new
markets;
• Adaptive technology system and continued focus on innovation to empower global

operations;
• High-quality services catering to regional customer and market needs; and
• Entrepreneurial and experienced management team and regional sponsors dedicated to

cultivating leaders and promoting development of our network.
OUR STRATEGIES
To achieve our vision and mission, we intend to pursue the following strategies:
• Solidify our leading position and continue to grow our market share;
• Expand our capacity while enhancing the efficiency and connectivity of our logistics
network;
• Expand into new markets and new service offerings; and
• Invest in innovation, technology and environmental sustainability.
RISK FACTORS
Our operations and the [REDACTED] involve certain risks and uncertainties, which are set out
in “Risk Factors.” You should read that section in its entirety carefully before you decide to
[REDACTED] in our Shares. Some of the major risks we face include:
• Our business and growth are highly dependent on the development of the e-commerce
industry in the markets where we operate.
• We face risks in managing global operations, entering into and expanding across a number
of countries.
• We have relied, and may continue to rely, on certain prominent e-commerce platforms.
• We face risks associated with our network partners and their employees and personnel.
–6–
SUMMARY
• We have a history of gross losses and net losses and negative cash flows from operating
activities, which may continue in the future. Our limited operating history and evolving
business model also make it difficult to evaluate our business, financial performance and
prospects.
• We face intense competition which could adversely affect our results of operations and
market share.
• Any service disruption experienced by our sorting centers or the pickup and delivery
outlets may adversely affect our operations.
• Our technology system is critical to our operations and growth prospects.
• Our long-term growth and competitiveness are highly dependent on our ability to control
costs.
• Fluctuations in exchange rates could adversely affect our financial condition, results of
operations and cash flows.
CONTRACTUAL ARRANGEMENTS
Our Group operates or may operate in certain industries that are subject to restrictions under
the current PRC and Indonesian laws and regulations. In order to comply with such laws and
regulations, while availing ourselves of international capital markets and maintaining effective
control over all of our operations, we control our Consolidated Affiliated Entities through the
PRC Contractual Arrangements entered into on January 18, 2023 and the Indonesian
Contractual Arrangements entered into on March 29, 2022. We do not directly own any equity
interest in our Consolidated Affiliated Entities. Pursuant to the Contractual Arrangements, we
have effective control over the financial and operational policies of our Consolidated Affiliated
Entities and are entitled to all the economic benefits derived from the Consolidated Affiliated
Entities’ operations. For further details, see “Contractual Arrangements.”
The following simplified diagram illustrates the flow of economic benefits from our
Consolidated Affiliated Entities to our Company stipulated under the Contractual
Arrangements:
The registered shareholders of

each of the PRC and Our Company
Indonesian Holdcos
Note 2
PRC and Indonesian
Intermediate holding companies
Holdcos
Note 2
Other PRC and Indonesian Note 1 PRC and Indonesian

subsidiaries WFOEs
legal and beneficial ownership

contractual relationship
–7–
SUMMARY
Notes:
(1) The PRC WFOE provides technical support, business support and relevant consulting services in exchange for
service fees from the PRC Holdco. See “Contractual Arrangements – Our Contractual Arrangements –
Summary of the agreements under the PRC Contractual Arrangements and other key terms thereunder –
Exclusive Business Cooperation Agreement.” The Indonesian WFOE provides comprehensive management
consulting services to the Indonesian Holdco in exchange for service fees. See “Contractual Arrangements –
Our Contractual Arrangements – Summary of the agreements under the Indonesian Contractual Arrangements
and other key terms thereunder – Exclusive Technical Service Agreement.”
(2) The Registered Shareholders of the PRC Holdco executed the exclusive option agreement in favor of the PRC
WFOE for the acquisition of all or part of the equity interests in and all or part of the assets in the PRC Holdco.
See “Contractual Arrangements – Our Contractual Arrangements – Summary of the agreements under the PRC
Contractual Arrangements and other key terms thereunder – Exclusive Option Agreement.” The Registered
Shareholders of the PRC Holdco executed Shareholders’ Rights Proxy Agreement in favor of the PRC WFOE,
for the exercise of all shareholders’ rights in the PRC Holdco. See “Contractual Arrangements – Our
Contractual Arrangements – Summary of the agreements under the PRC Contractual Arrangements and other
key terms thereunder – Shareholder Rights Proxy Agreement.” The Registered Shareholders of the PRC
Holdco granted security interests in favor of the PRC WFOE, over the entire equity interests in the PRC
Holdco. See “Contractual Arrangements – Our Contractual Arrangements – Summary of the agreements under
the PRC Contractual Arrangements and other key terms thereunder – Equity Pledge Agreement.” The
Indonesian Individual and Corporate Registered Shareholders executed a number of agreements in favor of the
Indonesian WFOE to allow the Indonesian WFOE to consolidate control over the Indonesian Holdco and
derive the full economic benefits from the Indonesian Holdco. See “Contractual Arrangements – Our
Contractual Arrangements – Summary of the agreements under the Indonesian Contractual Arrangements and
other key terms thereunder.”
WEIGHTED VOTING RIGHTS STRUCTURE AND OUR CONTROLLING

SHAREHOLDERS
We are proposing to adopt a weighted voting rights structure effective immediately upon the
completion of the [REDACTED]. Under this structure, our share capital will comprise Class
A Shares and Class B Shares. Each Class A Share shall entitle its holder to 10 votes, and each
Class B Share shall entitle its holder to one vote on each resolution subject to a vote at our
general meetings on a poll, except for resolutions with respect to the Reserved Matters, in
relation to which each Class A Share and each Class B Share shall entitle its holder to one vote
on a poll at a general meeting of the Company.
Immediately upon the completion of the [REDACTED], the WVR Beneficiary will be Mr. Li.
Assuming (i) the [REDACTED] is not exercised and (ii) the Reclassification, Redesignation
and Share Subdivision are completed, Mr. Li will be interested in and will control, through
Jumping Summit Limited, 979,333,410 Class A Shares, representing approximately
[REDACTED]% of our total issued share capital, and approximately [REDACTED]% of the
total voting rights in our Company with respect to the Reserved Matters, and approximately
[REDACTED]% of the total voting rights in our Company with respect to matters other than
the Reserved Matters.
Topping Summit Limited, Mr. Li’s wholly-owned entity, holds 5% equity interest in Jumping
Summit Limited, the remaining 95% equity interest in Jumping Summit Limited is held by
Exceeding Summit Holding Limited, the entire equity interest of which is held by Vistra Trust
(Singapore) Pte. Limited as trustee for the family trust established by Mr. Li for himself and
his family. Therefore, Mr. Li, Jumping Summit Limited, Topping Summit Limited and
Exceeding Summit Holding Limited will be our Controlling Shareholders after the
[REDACTED].
See “Share Capital – Weighted Voting Rights Structure” and “Relationship with the Controlling
Shareholders” for further details.
–8–
SUMMARY
Our WVR Structure will enable the WVR Beneficiary to exercise voting control over us
notwithstanding the WVR Beneficiary does not hold a majority economic interest in the share
capital of our Company. This will enable us to benefit from the continuing vision and
leadership of the WVR Beneficiary who will control us with a view to our long-term prospects
and strategy.
Prospective investors are advised to be aware of the potential risks of investing in companies
with weighed voting rights structures, in particular that interests of the WVR Beneficiary may
not necessarily always be aligned with those of our Shareholders as a whole, and that the WVR
Beneficiary will be in a position to exert significant influence over the affairs of our Company
and the outcome of shareholders’ resolutions, irrespective of how other shareholders vote.
Prospective investors should make the decision to invest in our Company only after due and
careful consideration. For further information about the risks associated with the WVR
Structure adopted by our Company, see “Risk Factors – Risks Related to the WVR Structure.”
PRE-[REDACTED] INVESTORS
We received multiple series of equity financing from our Pre-[REDACTED] Investors to

support our expanding business operations from 2017 to 2023. Our broad and diverse base of
Pre-[REDACTED] Investors consist of, among others, Tencent, Boyu, ATM, D1, Hillhouse,
GLP, Sequoia, SF Express, Dahlia, SAI Growth and CMBI. See “History and Corporate
Structure – Pre-[REDACTED] Investments” for more details.
OUR CUSTOMERS AND SUPPLIERS
For our express delivery and cross-border services, our customers include our network
partners, e-commerce platforms, certain enterprise and individual customers, as well as our
unconsolidated regional operating entities. For our cross-border services, our customers also
include freight forwarders who place orders on behalf of their end customers. Our direct
customers are primarily our network partners, unconsolidated regional operating entities,
e-commerce platforms and other enterprise customers and individuals which require
customized express delivery services. In 2020, 2021 and 2022, our top five customers
contributed to 44.6%, 39.4% and 25.7% of our total revenue, respectively. For details, see
“Business – Customers.”
During the Track Record Period, our suppliers primarily included service providers of
third-party transportation, human resources services and express delivery services including
our network partners and unconsolidated regional operating entities. In 2020, 2021 and 2022,
our five largest suppliers accounted for 15.6%, 12.3% and 10.0% of our total purchases,
respectively. For details, see “Business – Suppliers.”
COMPETITIVE LANDSCAPE
The express delivery industry in Southeast Asia is fragmented and we compete primarily with
express delivery service provided by national postal agencies as well as leading private
domestic express delivery companies in each of the countries in which we operate. We also
compete with international carriers that operate in Southeast Asia and China in connection with
our cross-border services. We believe that our global footprint, innovative regional sponsor
business model, superior operational capabilities and our quality service provide us with a
competitive advantage. While we maintain leading positions in our core markets, certain more
established e-commerce companies may compete with us by building their own logistics
capabilities. Furthermore, certain local players might seek to expand regionally and compete
with us in overlapping geographies. We believe that our core strengths provide us with
competitive advantages over existing and potential competitors. For further details regarding
our industry, see “Industry Overview.”
–9–
SUMMARY
SUMMARY OF HISTORICAL FINANCIAL INFORMATION
The following tables set forth summary consolidated financial data from our consolidated
financial information for the Track Record Period, extracted from the Accountant’s Report set
out in Appendix I to this document. The summary consolidated financial data set forth below
should be read together with, and is qualified in its entirety by reference to, our consolidated
financial statements in this document, including the related notes. Our consolidated financial
information was prepared in accordance with IFRS.
Consolidated Income Statements Data
The following table sets forth a summary of our consolidated income statements data for the
periods indicated:

2020 2021 2022
US$ % US$ % US$ %
(in thousands, except for percentages)
Revenue . . . . . . . . . . . . . . . . 1,535,425 100.0 4,851,800 100.0 7,267,428 100.0

Cost of revenue . . . . . . . . . . . (1,796,913) (117.0) (5,396,544) (111.2) (7,537,666) (103.7)
Gross loss. . . . . . . . . . . . . . . (261,488) (17.0) (544,744) (11.2) (270,238) (3.7)

Selling, general and
administrative expenses . . . . . (365,869) (23.8) (1,129,024) (23.3) (1,095,528) (15.1)
Research and development
expenses . . . . . . . . . . . . . . (14,129) (0.9) (41,031) (0.8) (44,483) (0.6)
Net impairment losses on
financial assets . . . . . . . . . . (9,488) (0.6) (41,320) (0.9) (37,219) (0.5)
Other income . . . . . . . . . . . . . 17,056 1.1 82,542 1.7 98,149 1.4
Other gains/(losses), net . . . . . . 27,474 1.8 26,370 0.5 (40,246) (0.6)
Operating loss . . . . . . . . . . . . (606,444) (39.5) (1,647,207) (34.0) (1,389,565) (19.1)

Finance income . . . . . . . . . . . 1,965 0.1 9,476 0.2 22,002 0.3
Finance costs . . . . . . . . . . . . . (13,831) (0.9) (99,077) (2.0) (99,499) (1.4)
Finance cost, net . . . . . . . . . . . (11,866) (0.8) (89,601) (1.8) (77,497) (1.1)

Fair value change of financial
assets and liabilities at fair
value through profit or loss . . . – – (4,383,532) (90.3) 3,050,694 42.0
Share of results of associates . . . (323) (0.0) 1,208 (0.0) (302) (0.0)
(Loss)/Profit before
income tax . . . . . . . . . . . . . (618,633) (40.3) (6,119,132) (126.1) 1,583,330 21.8
Income tax expense . . . . . . . . . (45,530) (3.0) (73,126) (1.5) (10,763) (0.1)
(Loss)/Profit for the year . . . . . (664,163) (43.3) (6,192,258) (127.6) 1,572,567 21.6
Attributable to
Owners of the Company . . . . . . (564,836) (36.8) (6,046,983) (124.6) 1,656,168 22.8
Non-controlling interests . . . . . . (99,327) (6.5) (145,275) (3.0) (83,601) (1.2)
(664,163) (43.3) (6,192,258) (127.6) 1,572,567 21.6
– 10 –
SUMMARY
NON-IFRS MEASURES
To supplement our consolidated results which are prepared and presented in accordance with
IFRS, we use adjusted (loss)/profit and adjusted EBITDA as additional financial measures,
which are not required by, or presented in accordance with, IFRS. We believe that these
non-IFRS measures facilitate comparisons of operating performance from period to period and
company to company by eliminating the potential impact of items that our management does
not consider to be indicative of our operating performance, such as certain non-cash items, the
impact of certain investment transactions, non-recurring items associated with the
[REDACTED] or our acquisition of BEST Express China, and other items not directly related
to our operating activities. The use of these non-IFRS measures has limitations as an analytical
tool, and you should not consider them in isolation from, as a substitute for, or superior to, our
results of operations or financial conditions as reported under IFRS. In addition, these
non-IFRS financial measures may be defined differently from similar terms used by other
companies, and may not be comparable to other similarly titled measures used by other
companies. Our presentation of these non-IFRS measures should not be construed as an
implication that our future results will be unaffected by unusual or non-recurring items.
The following table sets forth a reconciliation of our non-IFRS financial measures for the years
ended December 31, 2020, 2021 and 2022 to the nearest measures prepared in accordance with
IFRS:

2020 2021 2022
(in US$ thousands)
(Loss)/Profit for the year. . . . . . . . . . . . . . . . . . . . (664,163) (6,192,258) 1,572,567

Add
Share-based payments and expenses(1) . . . . . . . . . . . 188,302 619,012 281,366
Integration cost(2) . . . . . . . . . . . . . . . . . . . . . . . . – 266,319 387,752
Fair value change of financial assets and liabilities at
fair value through profit or loss . . . . . . . . . . . . . . – 4,383,532 (3,050,694)
[REDACTED] expenses . . . . . . . . . . . . . . . . . . . . – [REDACTED] [REDACTED]
Adjusted loss for the year . . . . . . . . . . . . . . . . . . (475,861) (911,347) (798,649)
Notes:
(1) Include share-based compensation expenses related to employee benefits and share-based payments related to
equity transactions.
(2) Includes (i) certain compensation packages for the employees of BEST Express China as part of the integration
plan, (ii) impairment of property, plant and equipment that are identified as redundant as integrated BEST
Express China, (iii) impairment of property, plant and equipment that we have identified as redundant, and
other impairment of goodwill, property, plant and equipment and intangible assets, (iv) accrued provision for
terminated customers and legal claims in relation to historical operation of BEST Express China, and (v) other
miscellaneous integration costs.
– 11 –
SUMMARY

2020 2021 2022
(in US$ thousands)

Add
Depreciation and amortization . . . . . . . . . . . . . . . . 97,302 220,489 505,947
[REDACTED] expense . . . . . . . . . . . . . . . . . . . . – [REDACTED] [REDACTED]
Finance income . . . . . . . . . . . . . . . . . . . . . . . . . (1,965) (9,476) (22,002)
Finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,831 99,077 99,499
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . 45,530 73,126 10,763
Adjusted EBITDA . . . . . . . . . . . . . . . . . . . . . . . (321,163) (528,131) (204,442)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . 266,561 427,436 331,582

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (616,227) (939,695) (334,906)
Others(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,652 (14,028) (168,789)
Un-allocated(4) . . . . . . . . . . . . . . . . . . . . . . . . . 26,851 (1,844) (32,329)
Notes:
(2) Include (i) certain compensation packages for the employees of BEST Express China as part of the integration
(3) Include our cross-border services and express delivery services in the New Markets.
(4) Represent certain expenses, gains and losses, including general and administrative expenses, and exchange
– 12 –
SUMMARY
Consolidated Balance Sheets Data

2020 2021 2022
(in US$ thousands)
Total non-current assets . . . . . . . . . . . . . . . . . . . . 628,286 3,028,218 3,089,262

Total current assets . . . . . . . . . . . . . . . . . . . . . . . 1,614,754 3,516,424 2,846,297
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,243,040 6,544,642 5,935,559
Total non-current liabilities . . . . . . . . . . . . . . . . . . 1,966,519 10,975,327 9,188,190

Total current liabilities . . . . . . . . . . . . . . . . . . . . . 1,147,020 2,205,739 1,731,617
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 3,113,539 13,181,066 10,919,807
Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 14 14
Share premium . . . . . . . . . . . . . . . . . . . . . . . . . . 33,184 607,734 603,829
Other reserves . . . . . . . . . . . . . . . . . . . . . . . . . . (166,468) (525,822) (434,108)
Accumulated losses . . . . . . . . . . . . . . . . . . . . . . . (625,953) (6,672,936) (5,016,768)
Equity/(deficits) attributable to owners of the
Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . (759,230) (6,591,010) (4,847,033)
Non-controlling interests . . . . . . . . . . . . . . . . . . . (111,269) (45,414) (137,215)
Total deficits . . . . . . . . . . . . . . . . . . . . . . . . . . . (870,499) (6,636,424) (4,984,248)
Consolidated Statements of Cash Flows Data

2020 2021 2022
(in US$ thousands)
Net cash used in operating activities. . . . . . . . . . . . . (154,700) (967,174) (519,817)

Net cash used in investing activities . . . . . . . . . . . . . (635,086) (1,001,006) (859,757)
Net cash from financing activities . . . . . . . . . . . . . . 1,285,166 3,469,507 881,328
Net (decrease)/increase in cash and
cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . 495,380 1,501,327 (498,246)
Cash and cash equivalents at the beginning
of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,173 600,425 2,102,448
Effects of foreign exchange rate changes
on cash and cash equivalents . . . . . . . . . . . . . . . . 7,872 696 (100,154)
Cash and cash equivalents at the end of the year . . . 600,425 2,102,448 1,504,048
In 2022, our net cash used in operating activities was US$519.8 million, which was primarily
attributable to our profit before income tax of US$1,583.3 million in 2022, adjusted by adding
back non-cash items including (i) share-based compensation of US$346.6 million, (ii)
depreciation of right-of-use assets and depreciation of property, plant and equipment of
US$257.2 million and US$227.9 million, respectively, incurred in relation to the optimization
of operation and adjustment of network, (iii) impairment losses on long-term assets of
US$219.1 million, (iv) fair value changes on convertible preferred shares of US$3,050.7
million, (v) net loss on disposal of property, plant and equipment of US$1.9 million, and (vi)
impairment losses on financial assets of US$37.2 million, partially offset by items including
finance cost of US$99.5 million and foreign exchange losses of US$17.3 million. The amount
was further adjusted by changes in working capital, which primarily comprised of (i) an
increase in trade receivables of US$191.1 million, (ii) a decrease in trade payables of US$84.7
million, (iii) a decrease in advances from customers of US$73.6 million, and (iv) an increase
in prepayments, other receivables, and other assets of US$42.2 million, offset by (i) an increase
in accruals and other payables of US$118.2 million, and (ii) return of restricted cash of
US$45.8 million.
– 13 –
SUMMARY
BUSINESS SUSTAINABILITY
According to Frost & Sullivan, we are the number one express delivery operator in Southeast
Asia by parcel volume in 2021 and 2022, with a market share of 22.5% in 2022, and we are
one of the top players in China with a 10.9% market share by parcel volume for 2022. In 2022,
we further expanded into new markets including Saudi Arabia, UAE, Mexico, Brazil and
Egypt. During the Track Record Period, we rapidly ramped up our operations across these
markets and we incurred gross loss, operating loss and net operating cash outflow. We incurred
net loss in 2020 and 2021, and we incurred net profit in 2022 mainly due to the fair value gain
of financial liabilities at fair value through profit or loss.
As we continue to develop our market leadership, Southeast Asia and China continue to present
to us significant growth opportunities brought about by several developments, including
increasing levels of per capita disposable income, rising levels of consumer spending, higher
rate of Internet and mobile penetration, and other general economic conditions that affect
consumption and business activities in the jurisdictions where we operate. In particular, we
anticipate additional growth from further adoption of online shopping in Southeast Asia, as
well as the trend toward new retail in China, which is the seamless integration of online and
offline retail. Additionally, the development of social e-commerce as a growing subset of the
broader e-commerce market in Southeast Asia and China will likely stimulate additional
demand for express delivery services. We believe we are well positioned to capture market
opportunities through our global network and unique market positions.
To pave the way for long-term success, we have been focusing on growing our market share
in the core markets where we operate, enhancing our leadership position in Southeast Asia and
China, expanding our geographic coverage and logistics network and investing in technology,
talent, customer service and environmental sustainability.
In the long term, to continue to realize our revenue potential and achieve profitability, we plan
to further (i) grow our parcel volume globally, (ii) maintain a flexible pricing strategy, (iii)
control costs and improve gross margin, and (iv) enhance operating leverage. See “Business –
Business Sustainability” for more details.
APPLICATION FOR [REDACTED] ON THE [REDACTED]
We are applying for [REDACTED] with a WVR structure under Chapter 8A of the Listing
Rules and satisfy the market capitalization requirement under Rule 8A.06(1) of the Listing
Rules which requires that a new applicant seeking a listing with a WVR structure must have
a market capitalization of at least HK$40 billion at the time of listing.
We are also applying for [REDACTED] under Rule 8.05(3) of the Listing Rules and satisfy
the market capitalization/revenue test with reference to (i) our revenue for the year ended
December 31, 2022, being approximately US$7.3 billion (equivalent to approximately
HK$57.0 billion), which is significantly over HK$500 million as required by Rule 8.05(3); and
(ii) our expected market capitalization at the time of [REDACTED], which, based on the
low-end of the indicative [REDACTED] Range, significantly exceeds HK$4 billion as
required by Rule 8.05(3).
We have applied to the [REDACTED] for the granting of the [REDACTED] of, and
permission to deal in, the Class B Shares in issue (including the Class B Shares on conversion
of the Pre-[REDACTED] Preferred Shares) and the Class B Shares to be issued pursuant to the
(i) [REDACTED], (ii) the exercise of the [REDACTED] and (iii) conversion of Class A
Shares into Class B Shares on a one to one basis and that are issuable upon conversion of the
Class A Shares.
– 14 –
SUMMARY
RECENT DEVELOPMENTS
Acquisition of Fengwang Information
On May 12, 2023, the Group entered into a share transfer agreement with Shenzhen Fengwang
Holdings Company Limited (深圳市豐網控股有限公司) (“Fengwang Holdings”), a subsidiary
of S.F. Holding Co., Ltd. (順豐控股股份有限公司) (stock code: 002352.SZ), to acquire the
entire equity interest of Fengwang Holdings’ wholly-owned subsidiary, Shenzhen Fengwang
Information Technology Company Limited (深圳市豐網信息技術有限公司) (“Fengwang
Information”), at a total consideration of RMB1,183 million. The acquisition is subject to
customary closing conditions. For more information regarding the acquisition of Fengwang
Information, see “History and Corporate Structure – Major Acquisitions, Disposals and
Mergers – Acquisition of Fengwang Information.”
No Material Adverse Change
Our Directors confirm that up to the date of this document, there has been no material adverse
change in our financial or trading position, indebtedness, mortgage, contingent liabilities,
guarantees or prospects since December 31, 2022, the end of the period reported on as set out
in the Accountants’ Report included in Appendix I to this document.
FUTURE DIVIDENDS
We are a holding company incorporated under the laws of the Cayman Islands. Any future
decision to declare and pay any dividends will be at the discretion of our Board and will depend
on, among other things, the availability of dividends received from our subsidiaries, our
earnings, capital and investment requirements, level of indebtedness, and other factors that our
Board deems relevant. As advised by our Cayman Islands counsel, under Cayman Islands law,
a Cayman Islands company may pay a dividend out of either profits or share premium account,
provided that in no circumstances may a dividend be paid if this would result in, immediately
following the date on which the distribution or dividend is proposed to be paid, the company
being unable to pay its debts as they fall due in the ordinary course of business. Investors
should not purchase our shares with the expectation of receiving cash dividends. Dividend
distribution to our shareholders is recognized as a liability in the period in which the dividends
are approved by our shareholders or Directors, where appropriate. We do not have a fixed
dividend payout ratio.
[REDACTED]
– 15 –
SUMMARY
[REDACTED]
[REDACTED] EXPENSES
Based on the mid-point [REDACTED] of HK$[REDACTED], the total estimated

[REDACTED] expenses in relation to the [REDACTED] is approximately
HK$[REDACTED] million, assuming the [REDACTED] is not exercised, the
Reclassification, Redesignation and Share Subdivision are completed. The total estimated
[REDACTED] expenses will represent approximately [REDACTED]% of the total gross
[REDACTED] from the [REDACTED] of approximately HK$[REDACTED] billion
assuming that [REDACTED] is not exercised. US$[REDACTED] million of the
[REDACTED] was charged to our consolidated income statement for the year ended
December 31, 2022. We estimate that the total [REDACTED] expenses for the year of 2023
– 16 –
SUMMARY
in the amount of US$[REDACTED] million will be charged to our consolidated income

statement for the year ending December 31, 2023. The balance of approximately
US$[REDACTED] million, which mainly includes [REDACTED] commission, is expected to
be accounted for as a deduction from equity upon the completion of the [REDACTED]. These
[REDACTED] expenses mainly comprise professional fees paid and payable to the
professional parties for their services rendered in relation to the [REDACTED] and the
[REDACTED] and the [REDACTED] commission and incentive fee payable to the
[REDACTED] in connection with the [REDACTED] of [REDACTED] under the
[REDACTED].
USE OF [REDACTED]
Assuming an [REDACTED] of HK$[REDACTED] per Share (being the mid-point of the

[REDACTED] Range of between HK$[REDACTED] and HK$[REDACTED] per Share), we
estimate that we will receive net [REDACTED] of approximately HK$[REDACTED] billion
from the [REDACTED] after deducting the [REDACTED] commissions and other estimated
expenses paid and payable by us in connection with the [REDACTED] and assuming that the
[REDACTED] is not exercised. In line with our strategies, we intend to use our
[REDACTED] from the [REDACTED] for the purposes and in the amounts set forth below:
• approximately [REDACTED]%, or HK$[REDACTED] million, will be used to expand

our logistics networks, improve our infrastructure, and strengthen our sorting and
warehouse capacity and capabilities in Southeast Asia and other existing markets;
• approximately [REDACTED]%, or HK$[REDACTED] million, will be used to expand

in new markets and diverse our service offering;
• approximately [REDACTED]%, or HK$[REDACTED] million, will be used for

research and development and technology innovations; and
• approximately [REDACTED]%, or HK$[REDACTED] million, will be used for general

corporate purposes and working capital needs.
The above allocation of the net [REDACTED] from the [REDACTED] will be adjusted on a
pro rata basis in the event that the [REDACTED] is fixed at a higher or lower level compared
to the mid-point of the indicative [REDACTED] range stated in this document.
– 17 –
DEFINITIONS
In this document, unless the context otherwise requires, the following expressions have
the following meanings.
“AFRC” the Accounting and Financial Reporting Council of Hong

Kong
“Articles” or “Articles of the seventh amended and restated articles of association

Association” of the Company adopted on [●], which will become
effective upon the [REDACTED], as amended from time
to time, a summary of which is set out in Appendix IV to
this document
“associate(s)” has the meaning ascribed to it under the Listing Rules
“Audit Committee” the audit committee of the Board
“Board” or “Board of Directors” our board of Directors
“Business Day” or “business a day on which banks in Hong Kong are generally open
day” for normal banking business and which is not a Saturday,
Sunday or public holiday in Hong Kong
“BVI” the British Virgin Islands
“CAC” Cyberspace Administration of China (中華人民共和國國

家互聯網信息辦公室)
“CAGR” compound annual growth rate
[REDACTED] the [REDACTED] as named in “Directors and Parties

Involved in the [REDACTED]”
“Cayman Companies Act” or the Companies Act, Cap. 22 (Law 3 of 1961, as

“Companies Act” consolidated and revised) of the Cayman Islands, as
amended, supplemented or otherwise modified from time
to time
[REDACTED]
– 18 –
DEFINITIONS
[REDACTED]
“Class A Shares” class A shares of the Company with a par value of

US$0.000002 each, following the Reclassification,
Redesignation and Share Subdivision, conferring
weighted voting rights in the Company such that each
Class A Share shall entitle its holder to ten votes per share
on each resolution subject to a vote at the Company’s
general meetings, save for resolutions with respect to any
Reserved Matters, in which case each Class A Share and
each Class B Share shall entitle its holder to one vote per
share on a poll at a general meeting
“Class B Shares” class B shares of the Company with a par value of

US$0.000002 each, following the Reclassification,
Redesignation and Share Subdivision, such that each
Class B Share shall entitle its holder to one vote on each
resolution subject to a vote at the Company’s general
meetings
“close associate(s)” has the meaning ascribed thereto under the Listing Rules
“Companies Ordinance” or the Companies Ordinance (Chapter 622 of the Laws of

“Hong Kong Companies Hong Kong), as amended or supplemented from time to
Ordinance” time
– 19 –
DEFINITIONS
“Companies (Winding Up and Companies (Winding Up and Miscellaneous Provisions)

Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong), as
Ordinance” amended and supplemented from time to time
“Company”, “our Company”, J&T Global Express Limited (極兔速遞環球有限公司),

“the Company” or “J&T Global” an exempted company incorporated in the Cayman
Islands with limited liability on October 24, 2019
“connected person(s)” has the meaning ascribed to it in the Listing Rules
“connected transaction(s)” has the meaning ascribed to it in the Listing Rules
“Consolidated Affiliated Entities” the entities we control through the Contractual

or “consolidated affiliated Arrangements, namely the PRC Holdco and Indonesian
entities” Holdco and their respective subsidiaries. For further
details of these entities, see “Contractual Arrangements”
“Contractual Arrangements” the series of contractual agreements entered into by the

PRC and Indonesian WFOE, the PRC Holdco, the
Indonesian Holdco, the PRC Registered Shareholders and
the Individual and Corporate Registered Shareholders of
our Indonesian Holdcos, details of which are described in
“Contractual Arrangements”
“Controlling Shareholders” has the meaning ascribed to it under the Listing Rules and
unless the context otherwise requires, refers to Mr. Jet Jie
Li, Jumping Summit Limited, Topping Summit Limited
and Exceeding Summit Holding Limited, details of whom
are set out in “Relationship with the Controlling
Shareholders”
“Corporate Governance Code” the Corporate Governance Code set out in Appendix 14 to
the Listing Rules
“Corporate Governance the corporate governance committee of the Board

Committee”
“CSRC” China Securities Regulatory Commission of the PRC (中

國證券監督管理委員會)
“Director(s)” the director(s) of our Company
“EIT rate” enterprise income tax rate
“ESG” environmental, social and governance
“ESG Committee” the environmental, social and governance committee of

the Company
– 20 –
DEFINITIONS
“Extreme Conditions” extreme conditions caused by a super typhoon as

announced by the government of Hong Kong
“GDP” gross domestic product
“GDP per capita” a country’s GDP divided by its population
[REDACTED] the [REDACTED] and the [REDACTED]
[REDACTED]
“Group”, “our Group”, “the our Company, its subsidiaries and consolidated affiliated
Group”, “we”, “us”, or “our” entities, or where the context so requires, in respect of the
period before our Company became the holding company
of our present subsidiaries and consolidated affiliated
entities, the subsidiaries and consolidated affiliated
entities as if they were the subsidiaries and consolidated
affiliated entities of our Company at the time
“Group entities” our subsidiaries and consolidated affiliated entities
“HK$” or “Hong Kong dollars” Hong Kong dollars and cents respectively, the lawful
or “HK dollars” or “cents” currency of Hong Kong
[REDACTED]
“Hong Kong” or “HK” the Hong Kong Special Administrative Region of the
PRC
[REDACTED]
– 21 –
DEFINITIONS
[REDACTED]
“Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited
or “Stock Exchange”
[REDACTED]
“IDR” Indonesian Rupiah, the lawful currency of Indonesia
“IFRS” International Financial Reporting Standards, amendments

and interpretations issued by the International
Accounting Standards Board
“independent third party(ies)” or any entity or person who is not a connected person of our
“Independent Third Party(ies)” Company or an associate of such person within the
meaning ascribed to it under the Listing Rules
“Indonesian Legal Adviser” Hutabarat Halim & Rekan, acting as legal counsel as to
Indonesian law to our Company
“Indonesian WFOE” PT. Cahaya Global Berjaya, a limited liability company

incorporated under the laws of the Republic of Indonesia
on June 11, 2021 and our wholly-owned subsidiary
[REDACTED]
– 22 –
DEFINITIONS
[REDACTED]
“J&T Express China” J&T Express China Co., Ltd. (極兔速遞有限公司), a

limited liability company incorporated under the laws of
the PRC on September 29, 2007 and a consolidated
affiliated entity of our Company
“J&T International Logistics J&T International Logistics China Co., Ltd. (極兔國際物
China” 流有限公司), a limited liability company incorporated
under the laws of the PRC on January 10, 2018 and our
subsidiary
[REDACTED]
– 23 –
DEFINITIONS
“Joint Sponsors” China International Capital Corporation Hong Kong

Securities Limited, Merrill Lynch (Asia Pacific) Limited
and Morgan Stanley Asia Limited (in alphabetical order)
“Latest Practicable Date” June 12, 2023, being the latest practicable date prior to
the printing of this document for the purpose of
ascertaining certain information contained in this
document
“Laws” all laws, statutes, legislation, ordinances, rules,

regulations, guidelines, opinions, notices, circulars,
orders, judgments, decrees, or rulings of any
Governmental Authority (including, without limitation,
the Stock Exchange and the SFC) of all relevant
jurisdictions
[REDACTED]
“Listing Committee” the Listing Committee of the Stock Exchange
[REDACTED]
“Listing Rules” the Rules Governing the Listing of Securities on The

Stock Exchange of Hong Kong Limited (as amended,
supplemented or otherwise modified from time to time)
“Main Board” the stock market (excluding the option market) operated
by the Stock Exchange which is independent from and
operated in parallel with the Growth Enterprise Market of
the Stock Exchange
“Memorandum” or the seventh amended and restated memorandum of

“Memorandum of Association” association of our Company, adopted on [●], which will
become effective upon the [REDACTED], as amended
from time to time, a summary of which is set out in
Appendix IV to this document
“MIIT” Ministry of Industry and Information Technology of the

PRC (中華人民共和國工業和信息化部)
“MOC” or “MOFCOM” Ministry of Commerce of the PRC (中華人民共和國商務

部)
“Mr. Li” Mr. Jet Jie Li (李傑), our Chairman of the Board of
Directors, executive Director and Chief Executive
Officer
– 24 –
DEFINITIONS
“MYR” Malaysian Ringgit, the lawful currency of Malaysia
“NDRC” National Development and Reform Commission of the

PRC (中華人民共和國國家發展和改革委員會)
“New Markets” Saudi Arabia, UAE, Mexico, Brazil and Egypt
“Nomination Committee” the nomination committee of the Board
[REDACTED]
“PH GJE” PH Global Jet Express Inc., doing business under the
name and style of J&T Express, a limited liability
company incorporated under the laws of the Philippines
on September 14, 2018 and our subsidiary
“PHP” Philippine Peso, the lawful currency of the Philippines
“PRC”, “Mainland China” the People’s Republic of China, but for the purposes of
or “China” this document only (unless otherwise indicated)
excluding Hong Kong, the Macau Special Administrative
Region and Taiwan
– 25 –
DEFINITIONS
“PRC Legal Adviser” DaHui Lawyers, acting as legal counsel as to PRC law to
our Company
“PRC WFOE” or “Chongqing Chongqing Yunqing Supply Chain Management Co.,

Yunqing” Ltd. (重慶紜慶供應鏈管理有限公司), a limited liability
company incorporated under the laws of the PRC on April
22, 2020 and our wholly-owned subsidiary
“Pre-[REDACTED] Share the Network Partners Equity Incentive Plan, as adopted

Incentive Plan” by our Shareholders on February 26, 2022 and amended
by way of Directors’ resolutions dated May 31, 2023
“Pre-[REDACTED] Investments” the investments made by the Pre-[REDACTED]

Investors, the principal terms of which are summarized in
“History and Corporate Structure – Pre-[REDACTED]
Investments”
“Pre-[REDACTED] Investor(s)” the investors in our Company prior to the [REDACTED]

as described in “History and Corporate Structure —
Pre-[REDACTED] Investments”
“Pre-[REDACTED] Preferred collectively, Series Pre-A1 Preferred Shares, Series

Shares” or “preferred shares” Pre-A2 Preferred Shares, Series A Preferred Shares,
Series B Preferred Shares, Series B+ Preferred Shares,
Series C1 Preferred Shares, Series C2 Preferred Shares
and Series D Preferred Shares, with a par value of
US$0.00001 each
[REDACTED]
“PT GJE” or “Indonesian Opco” PT Global Jet Express, a limited liability company
incorporated under the laws of Indonesia, which obtained
its legal entity status on May 21, 2015 and a consolidated
affiliated entity of our Company
“QIBs” qualified institutional buyers within the meaning of Rule

144A
– 26 –
DEFINITIONS
“Reclassification, Redesignation (i) the reclassification and redesignation of 195,866,682

and Share Subdivision” class B ordinary shares of a par value of US$0.00001
each held by Jumping Summit Limited into class A shares
of a par value of US$0.00001 each and the subdivision of
such each issued class A shares of a par value of
US$0.00001 each into five Class A Shares of a par value
of US$0.000002 each; (ii) the reclassification and
redesignation of all of the issued and unissued class A
ordinary shares of a par value of US$0.00001 each and
Pre-[REDACTED] Preferred Shares of a par value of
US$0.00001 each of the Company into class B shares of
a par value of US$0.00001 each and the subdivision of
such each issued and unissued class B shares of a par
value of US$0.00001 each into five Class B Shares of a
par value of US$0.000002 each
“Regulation S” Regulation S under the U.S. Securities Act
“Remuneration Committee” the remuneration committee of the Board
“Reserved Matters” those matters with respect to which each Class A Share
and each Class B Share shall entitle its holder to one vote
on a poll at general meetings of the Company pursuant to
the Articles of Association, being: (i) any amendment to
the Memorandum or Articles, including the variation of
the rights attached to any class of shares, (ii) the
appointment, election or removal of any independent
non-executive Director, (iii) the appointment or removal
of the Company’s auditors, or (iv) the voluntary
liquidation or winding-up of the Company
“RMB” or “Renminbi” the lawful currency of the PRC
“Rule 144A” Rule 144A under the U.S. Securities Act
“SAFE” State Administration of Foreign Exchange of the PRC (中

華人民共和國國家外匯管理局)
“SAIC” State Administration for Industry and Commerce of the

PRC (中華人民共和國國家工商行政管理總局)
“SAT” State Taxation Administration of the PRC (中華人民共和

國國家稅務總局)
“SEA entities” the 25 Indonesian unconsolidated regional operating

entities and the 13 Thailand unconsolidated regional
operating entities which we acquired in 2021
“SFC” the Securities and Futures Commission of Hong Kong
– 27 –
DEFINITIONS
“SFO” or “Securities and Futures the Securities and Futures Ordinance (Chapter 571 of the
Ordinance” Laws of Hong Kong), as amended or supplemented from
time to time
“Shanghai Yishangshiye” or Shanghai Yishangshiye Co., Ltd. (上海邑商實業有限公

“PRC Holdco” 司), a limited liability company incorporated under the
laws of the PRC on April 8, 2014 and a holding company
of certain PRC subsidiaries
“Share(s)” or “Ordinary Share(s)” the Class A Shares and/or Class B Shares in the share
capital of our Company, as the context so requires
“Shareholder(s)” holder(s) of our Shares
“Shareholders Agreement” the Fifth Amended and Restated Shareholders Agreement

dated May 17, 2023 entered into, amongst others, the
Company and its Shareholders
[REDACTED]
“State” the central government of the PRC, including all

governmental subdivisions (including provincial,
municipal and other regional or local government
entities) and its organs or, as the context requires, any of
them
“State Council” the State Council of the PRC (中華人民共和國國務院)
“subsidiary” or “subsidiaries” has the meaning ascribed to it under the Companies

Ordinance
“substantial shareholder” has the meaning ascribed to it in the Listing Rules
“Takeovers Code” the Hong Kong Code on Takeovers and Mergers
“THB” Thai Baht, the lawful currency of Thailand
“Track Record Period” the period comprising the three financial years ended
December 31, 2020, 2021 and 2022
“UAE” United Arab Emirates
[REDACTED]
– 28 –
DEFINITIONS
[REDACTED]
“United States” or “U.S.” the United States of America, its territories, its
possessions and all areas subject to its jurisdiction
“US$”, “USD” or “U.S. dollars” United States dollars, the lawful currency for the time
being of the United States
“U.S. Securities Act” the U.S. Securities Act of 1933, as amended and
supplemented or otherwise modified from time to time,
and the rules and regulations promulgated thereunder
“VAT” value-added tax
“VIE” or “VIEs” variable interest entity or variable interest entities
“VND” Vietnamese Dong, the lawful currency of Vietnam
“Winner Star” WINNER STAR HOLDINGS LIMITED, a limited

company incorporated in Hong Kong on April 2, 2015
with limited liability and a holding company of our
foreign subsidiaries
“WVR” or “weighted voting has the meaning ascribed to it in the Listing Rules
rights”
“WVR Beneficiary” has the meaning ascribed to it under the Listing Rules and
unless the context otherwise requires, refers to Mr. Jet Jie
Li, being the beneficial owner of the Class A Shares,
entitling him to weighted voting rights, details of which
are set out in “Share Capital”
“WVR Structure” has the meaning ascribed to it in the Listing Rules
In this document, the terms “associate”, “close associate”, “connected person”, “core
connected person”, “connected transaction”, “controlling shareholder” and “substantial
shareholder” shall have the meanings given to such terms in the Listing Rules, unless the
context otherwise requires.
Certain amounts and percentage figures included in this document have been subject to
rounding. Accordingly, figures shown as totals in certain tables may not be an arithmetic
aggregation of the figures preceding them. Any discrepancies in any table or chart between the
total shown and the sum of the amounts listed are due to rounding.
For ease of reference, the names of the PRC established companies or entities, laws or
regulations have been included in this document in both the Chinese and English languages.
In the event of any inconsistency, the Chinese versions shall prevail.
– 29 –
GLOSSARY OF TECHNICAL TERMS
This glossary of technical terms contains explanations of certain technical terms used in
this document. As such, these terms and their meanings may not correspond to standard
industry meanings or usage of these terms.
“API” application programming interface
“COD” cash on delivery, when a recipient pays for the goods at

the time of delivery
“Complaint rate” the units of parcels for which the express delivery
operators receive complaints from customers per million
units of parcels, which is one of the indicators for service
quality of express delivery operators
“Cost per parcel” total cost of revenue of an applicable period divided by

total parcel volume during the same period
“Effective complaint rate” the number of complaints in which the authorities have
attributed the major responsibility to express delivery
operators per million units of parcels
“First-mile pickup” initial collection of a package and transport to the local

pickup outlet
“GFA” gross floor area
“ISV” independent software vendor
“JMS system” J&T Information Management System
“Last-mile delivery” transportation of a package from the local pickup outlet

to the final delivery destination
“Network partners” business partners that own and operate pickup and
delivery outlets in our network within their respective
designated geographic regions
“NPS” net promoter score
“Parcel volume” the number of parcels delivered during an applicable

period
“Pickup and delivery outlets” operation sites that perform pickup and/or delivery
services
“Regional sponsors” individuals authorized by our Company to assist in

operating local delivery networks in their respective
designated geographic regions
– 30 –
GLOSSARY OF TECHNICAL TERMS
“Revenue per parcel” total revenue of an applicable period divided by total

parcel volume during the same period
“Sorting centers” transshipping and operating centers that connect

transportation resources including for centralized parcel
sorting, distribution and transshipment
“Transaction value” transaction value of all orders actually sold through

certain channels, excluding virtual products, unsettled or
returned orders
“unconsolidated regional regional operating entities that are owned and operated
operating entities” by regional sponsors under our brand, typically during
the ramp up period when we enter into new markets
– 31 –
FORWARD-LOOKING STATEMENTS
This document includes forward-looking statements. All statements other than statements of
historical facts contained in this document, including, without limitation, those regarding our
future financial position, our strategies, plans, objectives, goals, targets and future
developments in the markets where we operate or are seeking to operate, and any statements
preceded by, followed by or that include the words “believe,” “expect,” “estimate,” “predict,”
“aim,” “intend,” “will,” “may,” “plan,” “consider,” “anticipate,” “seek,” “should,” “could,”
“would,” “continue,” or similar expressions or the negative thereof, are forward-looking
statements. These forward-looking statements involve known and unknown risks, uncertainties
and other factors, some of which are beyond our control, which may cause our actual results,
performance, achievements or industry results, to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking statements.
These forward-looking statements are based on numerous assumptions regarding our present
and future business strategies and the environment in which we will operate in the future.
Important factors that could cause our actual performance or achievements to differ materially
from those in the forward-looking statements include, among other things, the following:
• our business and prospects;
• future developments, trends and conditions in the industry and markets in which we
operate;
• our strategies, plans, objectives and goals;
• general economic conditions;
• changes to regulatory environment in the industry and markets in which we operate;
• our business model;
• our ability to control or reduce costs;
• our dividend policy;
• the amount and nature of, and potential for, future development of our business;
• capital markets developments;
• the actions and developments of our competitors; and
• certain statements in “Financial Information” with respect to trends in prices, volumes,

operations, margins, overall market trends, risk management and exchange rates.
Additional factors that could cause actual performance or achievements to differ materially
include, but are not limited to, those discussed in “Risk Factors” and elsewhere in this
document. We caution you not to place undue reliance on these forward-looking statements,
which reflect our views only as of the date of this document. We undertake no obligation to
update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking
events discussed in this document might not occur. All forward-looking statements contained
in this document are qualified by reference to the cautionary statements set out in this section.
– 32 –
RISK FACTORS
An [REDACTED] in our Shares involves significant risks. You should carefully consider
all of the information in this document, including the risks and uncertainties described
below, before making an [REDACTED] in our Shares. The following is a description of
what we consider to be the material risks. Any of the following risks could have a
material adverse effect on our business, financial conditions and results of operations. In
any such case, the market price of our Shares could decline, and you may lose all or part
of your investment.
These factors are contingencies that may or may not occur, and we are not in a position
to express a view on the likelihood of any such contingency occurring. The information
given is as of the Latest Practicable Date unless otherwise stated, will not be updated
after that date, and is subject to the cautionary statements in “Forward-looking
Statements.”
Risks Related to Our Business and Industry
Our business and growth are highly dependent on the development of the e-commerce
industry in the markets where we operate.
We generate a significant portion of our parcel volume by serving e-commerce platforms and
merchants who conduct business on such e-commerce platforms, who rely on our services to
fulfill orders placed by consumers on such platforms.
Our business and growth are highly dependent on the viability and prospects of the e-commerce
industry in the markets where we operate. The development of the e-commerce industry is
affected by a number of factors, most of which are beyond our control. These factors include:
• the consumption power and disposable income of e-commerce consumers, as well as

changes in demographics and consumer tastes and preferences;
• the growth of broadband and mobile Internet penetration and usage;
• the selection, price and popularity of products offered on e-commerce platforms;
• the popularity of smartphones and other mobile devices and the cost of Internet access,
mobile data, and the trust and confidence level of e-commerce sellers and consumers in
countries where we operate, particularly in those developing countries where Internet
penetration is relatively low;
• the development of fulfillment, payment and other ancillary services associated with
e-commerce;
• changes in laws and regulations, as well as government policies that govern the
e-commerce industry;
• the emergence of alternative channels or business models that better suit the needs of
consumers; and
• changes of macroeconomic conditions, including inflation and deflation, fluctuation of

currency exchange rate, tax rates and other government policies and changes in
unemployment rate.
– 33 –
RISK FACTORS
In addition, in some regions where we operate, e-commerce is relatively new, and only recently
did certain regional e-commerce companies become sizable. Future developments of the
e-commerce industry, to a significant extent, would depend on improvements in transportation
and logistics infrastructure, developments of electronic payment system and other factors that
are beyond our control.
We face risks in managing global operations, entering into and expanding across a number
of countries.
We have made, and expect to continue to make, significant investments to expand our global
presence and international operations and compete with local competitors. Conducting our
business internationally, particularly in countries in which we have limited experience, subjects
us to a number of risks, including:
• operational challenges caused by distance, language, and cultural differences;
• investment of resources required to localize our business, such as the translation of our
operating system into foreign languages and the adaptation of our operations to local
practices, laws and regulations;
• underdeveloped logistics, delivery and digital payment landscape and lack of

infrastructure support;
• compliance with laws and regulations, including laws and regulations governing
competition, pricing, payment methods, data protection, privacy, Internet activities,
transportation services, logistics services, real estate tenancy, tax and social security,
employment and labor, foreign ownership, and other activities important to our business;
• difficulties in applying our business model into new markets, as well as difficulties in
identifying, attracting and retaining regional sponsors with entrepreneurial and industry
expertise and local knowledge;
• competition with existing players or other services providers in adjacent industries;
• different levels of Internet and e-commerce penetration across regions;
• exposure to business cultures in which improper business practices may be prevalent;
• difficulties in managing, growing, and staffing international operations;
• difficulties in cultivating and maintaining productive relationships with business partners;
• import and export restrictions and changes in trade regulations; and
• geopolitical events, including pandemic, war and terrorism.
In addition, we have introduced our regional sponsor model across different markets, and we
expect to expand our global footprint under the same or similar business model. The success
of our business is dependent on our ability to identify, attract and retain regional sponsors with
entrepreneurial and industry expertise and local knowledge. There is no assurance that we will
be able to localize our operations and business model or find capable regional sponsors
candidates in these markets.
– 34 –
RISK FACTORS
We have relied, and may continue to rely, on certain prominent e-commerce platforms.
Collaboration with major e-commerce platforms has been one of our key strategies to reach and
expand our customer base. Some of the e-commerce platforms have significant influence on
how transactions take place, including how purchase orders are fulfilled by indicating the
preferred express delivery companies for each order. To maintain and foster our cooperation
with these e-commerce platforms, we may have to accommodate their demands and
requirements, and provide customized value-added services, which may increase the cost of
our operations. We cannot assure you that we are able to maintain our relationships with these
e-commerce platforms in the future. We may not be able to successfully extend or renew our
current arrangements with these e-commerce platforms on commercially reasonable terms, or
at all, upon expiration or early termination of the current arrangements. If we are unable to
retain our status as a preferred service provider for e-commerce platforms and the merchants
on these e-commerce platforms, our business volume may decrease significantly, which could
adversely affect our business and results of operations.
In Southeast Asia, due to market practice, e-commerce platforms typically have significant
influence over the shipping method, for items sold on their platforms, and they enter into
agreements with express delivery service providers like us to procure express delivery services.
Therefore, e-commerce platforms are treated as our direct customers, and we generated a
significant portion of our revenue from a number of major e-commerce platforms during the
Track Record Period. In 2020, 2021 and 2022, revenue generated from our largest customer,
a major e-commerce platform, amounted to US$543.0 million, US$1,715.4 million and
US$1,231.3 million, respectively, representing 35.4%, 35.4% and 16.9% of our revenue,
respectively. Revenue contribution from this customer, as a percentage of our total revenue, has
been declining as we expanded our operations and diversified our customer base, and is
expected to continue to decline in the future. However, if any major e-commerce platform
customers, including our largest customer during the Track Record Period, terminates its
business relationship with us or significantly reduces the demand for our services, we may not
be able to find replacement customers in the near term and our results of operations could be
materially and adversely affected.
We face risks associated with our network partners and their employees and personnel.
As of December 31, 2022, we had approximately 9,600 network partners and over 21,000
pickup and delivery outlets. Our network partners and their employees carry out a significant
amount of direct interactions with our end customers, and their performance directly affects our
brand image.
We do not directly supervise the day-to-day operations of our network partners. We typically
manage our business relationships with network partners through contractual agreements,
which provide for performance incentives along with periodic evaluations. We may not be able
to manage the network partners, as well as their pickup and delivery outlets and service
stations, as effectively as if we had full ownership of them or operated their business directly.
Although we have established and distributed service standards across our network and provide
training to the employees and personnel of our network partners from time to time, we may not
be able to successfully monitor, maintain and improve them. Their failure to provide
satisfactory services may adversely impact our reputation and brand image. Furthermore, our
network partners may fail to implement sufficient control over the performance of pickup and
delivery personnel, such as proper collection and handling of parcels and delivery service fees,
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RISK FACTORS
adherence to customer privacy standards and timely delivery of parcels. We and our network
partners may suffer financial losses, incur liabilities and suffer reputational damages in the
event of theft or late delivery of parcels, embezzlement of delivery service fees or mishandling
of customer privacy.
Suspension or termination of the services of our network partners in a particular geographic

area may cause interruption to or suspension of our services in the corresponding geographic
area. Our network partners may suspend or terminate their services voluntarily or involuntarily
due to various reasons, including disagreement or dispute with us, failure to make a profit,
failure to maintain requisite approvals, licenses or permits or to comply with other
governmental regulations, and events beyond our or their control, such as inclement weather,
natural disasters, transportation interruptions or labor unrest or shortage. Due to the intense
competition in the express delivery industry, our existing network partners may also choose to
discontinue their cooperation with us and work with our competitors instead. We may not be
able to promptly replace our network partners or find alternative ways to provide services in
a timely, reliable and cost-effective manner, or at all. As a result of any service disruptions
associated with our regional operating entities and network partners, our customer satisfaction,
reputation, operations and financial performance may be materially and adversely affected. In
addition, we do not fully supervise the daily operations of certain regional operating entities,
as the commercial arrangements between us and our regional sponsors vary across regions. We
may not be able to manage these regional operating entities as effectively as if we had full
ownership of them. We cannot assure you that disputes will not arise between us and our
regional sponsors, or that our regional sponsors will not breach their obligations to us.
We have a history of gross losses and net losses and negative cash flows from operating
activities, which may continue in the future. Our limited operating history and evolving
business model also make it difficult to evaluate our business, financial performance and
prospects.
We recorded a gross loss of US$261.5 million, US$544.7 million and US$270.2 million in
2020, 2021 and 2022, respectively. We incurred a net loss of US$664.2 million, US$6.2 billion
and a net profit of US$1.6 billion in 2020, 2021 and 2022, respectively. We incurred net profit
in 2022 mainly due to the fair value gain of financial liabilities at fair value through profit or
loss. In addition, our net cash used in operating activities was US$154.7 million, US$967.2
million and US$519.8 million in 2020, 2021 and 2022, respectively. Our revenue is driven by
parcel volume and revenue per parcel. These components are affected by the various factors
driving the growth of e-commerce industry in countries where we operate, our ability to scale
up our network to meet increases in demand and the ability of us and our network partners to
provide high-quality services to end customers. We expect our costs and expenses to increase
in absolute amounts due to (i) the continued expansion of our network, (ii) the continued
investments in innovation and technology, (iii) our expansion into new markets and countries,
and (iv) expansion of our service offerings. Our ability to achieve and maintain profitability
depends on our ability to enhance our market position, maintain competitive pricing, replicate
our successful business model, and increase our operational efficiency. These are affected by
many factors which may be beyond our control. As a result of the foregoing and other factors,
we cannot assure you that we will not continue to incur gross losses and cash outflow from
operating activities in the future.
We commenced our operation in 2015 and thus have a limited operating history, which makes
it difficult to evaluate our future prospects and performance. We have experienced significant
growth and expansion since our inception and over the Track Record Period. Our total parcel
volume grew by 224.2% from 3.2 billion in 2020 to 10.5 billion in 2021, and further by 38.5%
to 14.6 billion in 2022. Due to our limited operating history, our past revenues and historical
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RISK FACTORS
growth rate may not be indicative of our future performance. In 2021, we acquired the SEA
entities and also BEST Express China. In May 2023, we further entered into a share transfer
agreement with Fengwang Holdings to acquire Fengwang Information. See “History and
Corporate Structure – Major Acquisitions, Disposals and Mergers – Acquisition of Fengwang
Information.” As a fast-growing company with a relatively limited operating history,
particularly in the current consolidated form, our financial statements may not be indicative of
our future performance and financial results.
Rather than relying on our historical operating and financial results to evaluate us, you should
consider our business prospects in light of the risks and difficulties we may encounter as an
early-stage company expanding globally. Our continued growth will depend on many factors
and endeavours that will require substantial management efforts and are beyond our control.
Our organizational structure is complex and will continue to grow as we involve additional
network partners, line-haul vehicles, employees, products and offerings, and technologies, and
as we continue to expand globally. All of these endeavours involve risks and difficulties. We
may not be able to successfully address risks and difficulties, which could significantly harm
our business, results of operations and financial condition.
We face intense competition which could adversely affect our results of operations and
market share.
The express delivery industry in most countries where we operate is fragmented. In these
countries, we compete primarily with express delivery service provided by national postal
agencies as well as leading domestic express delivery companies in each of the countries where
we operate. We compete with them based on a number of factors, including business model,
operational capabilities, service quality and cost control. In particular, we have historically
experienced declines in the express delivery service market prices and may face downward
pricing pressure again. If we cannot effectively control costs to remain competitive, our market
share and revenue may decline. Additionally, if we have to subsidize our network partners to
increase our competitiveness, our results of operations and financial conditions may be
adversely affected.
Certain of our current and potential competitors may have broader services or network
coverage, stronger brand recognition, greater capital resources and longer operational histories
than we do. In addition, our competitors may reduce their prices to gain business, especially
during times of slowed market demand growth, and such reductions may limit our ability to
maintain or increase our prices and operating margins or achieve growth of our business. Our
competitors may also establish collaborative relationships or strategic alliances to improve
their ability to address the needs of customers. We may not be able to successfully compete
against current or future competitors, and such competitive pressures may have a material and
adverse effect on our business, financial condition and results of operations.
In addition, major e-commerce platforms may choose to build or further develop their
respective in-house delivery capabilities to serve their logistics needs and compete with us,
which may significantly affect our market share and total parcel volume. As we diversify our
service offering and further expand our customer base, we may face competition from existing
or new players in new business that we choose to expand. In particular, we and network
partners may face competition from existing or new first-mile pick up and last-mile delivery
service providers which may expand their service offerings to include express delivery or adopt
a business model disruptive to our business and compete with our regional operating entities
and network partners for delivery personnel. Similarly, existing players in an adjacent or
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RISK FACTORS
sub-markets may choose to leverage their existing infrastructure and expand their services to
serve our customers. If these players succeed in doing so, our market share may suffer and our
business and financial performance may be significantly and adversely affected.
Any service disruption experienced by our sorting centers or the pickup and delivery outlets
may adversely affect our operations.
Our daily operations heavily rely on the orderly performance of our sorting centers and the
pickup and delivery outlets managed by our regional operating entities and network partners.
Our sorting centers or the pickup and delivery outlets may experience service disruptions due
to failure in their automated facilities, under-capacity during peak parcel volume periods, force
majeure events, third-party sabotage, dispute between us, and network partners or any third
party, employee delinquency or strike, governmental inspection of properties or governmental
orders that mandate any service halt or temporary or permanent shutdown that would adversely
impact our operations. The outbreak of a pandemic, such as the COVID-19, may also cause
disruption to our business. If we are required by governmental authorities to implement
emergency measures and temporarily close our facilities or service stations, our and our
network partners’ operating costs may increase as a result. In the event of any service
disruption, sorting, pickup and delivery of parcels at the relevant sorting centers or pickup and
delivery outlets may be delayed, suspended or stopped. Parcels will need to be redirected to
other nearby sorting centers or pickup and delivery outlets, and such rerouting of parcels will
likely increase risks of delay and mishandling during delivery. At the same time, increased
operational pressure on nearby sorting centers or pickup and delivery outlets may negatively
impact their performance and adverse effects across our network. Any of the foregoing events
may result in significant operational interruptions and slowdowns, customer complaints and
reputational damage.
Our technology system is critical to our operations and growth prospects.
The satisfactory performance, reliability and availability of our technology system are critical
to our ability to provide high-quality services. We rely on our centralized IT systems to
efficiently manage and operate our network. The maintenance and processing of various
operating and financial data are essential to the day-to-day operation of our business and
formulation of our development strategies. Any system interruptions caused by
telecommunications failures, errors encountered during system upgrades or system expansions,
computer viruses, hacking or other attempts to harm our systems that result in the
unavailability or slowdown of our technology systems, degraded order fulfillment
performance, or additional shipping and handling costs may, individually or collectively,
materially and adversely affect our business, reputation, financial condition and results of
operations.
As our business grows, we expect to continue to invest in and implement upgrades to our
information technology systems and infrastructure. However, we cannot assure you that we
will be successful in executing these system upgrades and improvement strategies. In
particular, our systems may experience interruptions during upgrades, and the new
technologies or infrastructures may not be fully integrated with the existing systems on a
timely basis, or at all. In addition, the upgrade and improvement of our information technology
systems and infrastructure may require us to commit substantial financial, operational and
technical resources, with no assurance that our business will increase. If we fail to respond to
technological change or to adequately maintain and upgrade our systems and infrastructure in
response to changing business needs in a timely, effective and cost-efficient fashion, our
business could be adversely affected.
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RISK FACTORS
Our long-term growth and competitiveness are highly dependent on our ability to control
costs.
Our results of operations are affected by our ability to control costs including labor,
transportation and lease costs, which may be subject to factors, including, among other things,
fluctuations in wage rates, fuel prices, toll fees, and leasing costs. Effective cost-control
measures have a direct impact on our financial condition and results of operations. Our fleets
use large quantities of fuel to operate vehicles and pay toll fees along their routes. The
availability and price of fuel and third-party transportation capacity are subject to political,
economic, and market factors that are beyond our control. We also incur a significant amount
of costs in relation to transportation and labor. Any unexpected increase in these costs, which
is subject to factors beyond our control, could adversely impact our profitability. We have
adopted, and expect to adopt, additional cost control measures. However, the measures we have
adopted or will adopt in the future may not be as effective as expected. If we are not able to
effectively control our costs and adjust the level of network transit fees based on operating
costs and market conditions, our profitability and cash flow may be adversely affected.
Fluctuations in exchange rates could adversely affect our financial condition, results of
operations and cash flows.
We operate in multiple jurisdictions, which exposes us to the effects of fluctuations in currency

exchange rates. Our subsidiaries and consolidated affiliated entities operate in functional
currencies other than the U.S. dollar, including Renminbi, Indonesian Rupiah, Vietnamese
Dong, Malaysian Ringgit, Philippine Pesos, Thai Baht, Singapore Dollars, Brazilian Real or
Mexican Peso among other currencies. For each Group entity, items included in its financial
statements are generally measured with the currency of the country where such Group entity
operates. Our financial information as expressed in U.S. dollars may be significantly affected
by fluctuations in foreign exchange rates, and the figures may be substantially higher or lower
than would be the case if exchange rates were to be stable. Therefore, our results of operations
as expressed in U.S. dollars may be significantly affected by fluctuations in foreign exchange
rates. There is no assurance that movements in foreign currency exchange rates will not have
a material adverse effect on our results of operations in future periods. We may enter into
derivatives transactions and incur relevant costs from time to time to manage our exposure to
exchange rate risk. Such derivatives transactions, while intended to be non-speculative, are
designed to protect us against increases or decreases in exchange rates, but not both. See
“Financial Information – Foreign Currency Fluctuations.”
We rely on third-party service providers in relation to certain aspects of our operations.
We depend on certain third-party service providers for transportation, supplies of equipment

and other services. The supplier base providing logistics equipment is relatively concentrated,
which has resulted in a limited number of suppliers for certain types of equipment and supplies,
while the market for third-party transportation services is fragmented, which have different
standards of operations and internal control procedures. There is no assurance that (i) these
service providers would operate in accordance with our instructions, policies and business
guidelines, or that their service quality will not materially deteriorate, (ii) we can maintain
good relationships with our third-party service providers, (iii) they will not unilaterally
increase their service prices, or (iv) there will not be any wrongdoing or misconduct by their
employees or by them which would materially and adversely affect their services. There is no
assurance that we can find reliable service providers who can meet our standards at scale as
we continue to expand globally. Decreased availability or increased costs of logistics,
transportation and supply chain service and equipment provided by third parties could impact
our cost of operations and our profitability.
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RISK FACTORS
In addition, we also engage third-party human resources agencies to provide labor forces to
supplement our capacity at different network facilities. The outsourcing activities and
agreements are subject to local laws and regulations. Even if we may have contractual
protection against claims from outsourced personnel, in the event that the outsourcing firms
violate any relevant labor laws and regulations or their employment agreements with the
outsourced personnel, such personnel may file a claim against us as they provide their services
at our network facilities. As a result, we may incur legal liability, and our reputation, brand
image as well as our business, financial condition and results of operations could be materially
and adversely affected.
We face challenges in diversifying our service offerings and expanding our customer base.
We intend to further diversify our service offerings and expand our customer base to add to our
revenue sources in the future. New services or new types of customers may involve risks and
challenges we do not currently face. Such new initiatives may require us to devote significant
financial and managerial resources and may not perform as well as expected. We may not be
able to successfully address customer demands and preferences, and our existing network and
facilities may not be adaptable to the new services or customers. In addition, we may not be
able to assure adequate service quality and may receive complaints or incur costly liability
claims, which would harm our overall reputation and financial performance. We may also
selectively invest in emerging business opportunities in adjacent logistics market. We may not
be able to achieve profitability or recoup our investments with respect to any new services or
new types of customers in time or at all.
Our business and results of operations may be materially and adversely affected if we are
unable to provide high-quality service.
The success of our business largely depends on our ability to maintain and further enhance our
service quality. Together with our regional operating entities and network partners, we provide
complete door-to-door express delivery services to our end customers. If we, our regional
operating entities or our network partners are unable to provide express delivery services in a
timely, reliable, safe and secure manner, our reputation and customer loyalty could be
negatively affected. If our customer service personnel fail to satisfy customer needs or respond
effectively to customer complaints, we may lose potential or existing end customers and
experience a decrease in customer orders, which could have a material adverse effect on our
business, financial condition and results of operations. See also “– We face risks associated
with our network partners and their employees and personnel.”
It is difficult to forecast customer demand accurately, and as a result we may be unable to

make planning and spending decisions to match customer demand.
We make planning and spending decisions, including capacity expansion, procurement

commitments, personnel needs and other resource requirements based on our estimates of
customer demand. The parcel volume we generate from end customers can vary significantly
and unexpectedly, reducing our ability to accurately estimate future customer demand. In
particular, we may potentially experience capacity and resource shortages in fulfilling
customer orders during peak season of e-commerce consumption or following special
promotional campaigns on any e-commerce platforms. Failure to meet customer demand in a
timely fashion or at all may adversely affect our financial condition and results of operations.
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RISK FACTORS
Our results of operations are subject to fluctuations due to seasonality and other events
beyond our control.
Our results of operations are affected by seasonal patterns and other events peculiar to the
jurisdictions where we operate. Our results of operations may vary and may not be comparable
from months to months. Our parcel volume was typically lower in the first quarter of each year
as a result of regional holidays, including the Lunar New Year, during which demand for is
typically lower. In Southeast Asia, our parcel volume is also impacted by holidays such as
Ramadan, as well as regional promotion periods such as the September 9 and October 10 sales
promotion periods, during which we typically experience an increase in parcel volume and
temporary shortage of labor. In addition, timing of certain major holidays such as Ramadan, as
well as the associated promotional events from e-commerce platforms, may vary from year to
year and is uncertain. In China, we typically experience higher parcel volume in the fourth
quarter of the year due to various holidays and promotional events offered by e-commerce
platforms, for example, the November 11 and December 12 sales promotion periods, see “– We
have relied, and may continue to rely, on certain prominent e-commerce platforms.” Our
financial condition and results of operations for future periods may continue to fluctuate. As
a result, our results of operations and the trading price of our Shares may fluctuate from time
to time due to seasonality, and comparisons of revenue and results of operations between
different periods within a single financial year, or between different periods in different
financial years, cannot be relied on as indicators of our performance.
Failure to renew our current leases or locate desirable premises for our facilities could
materially and adversely affect our business.
We lease properties for our facilities including offices and sorting centers. Some of our
regional operating entities and network partners lease properties for offices, pickup and
delivery outlets and service stations that they directly operate. We and our network partners
may not be able to successfully extend or renew such leases upon expiration of the current term
on commercially reasonable terms or at all, and may therefore be forced to relocate the affected
operations. This could disrupt our operations and result in significant relocation expenses,
which could adversely affect our business, financial condition and results of operations. As our
network scales up, we may need additional space for our sorting centers to meet our expansion
demands. We compete with other businesses for premises at certain locations or of desirable
sizes, and it can be difficult to find suitable premises to meet our standards. Even if we are able
to extend or renew our leases, rental payments may significantly increase as a result of the high
demand for the leased properties. In addition, we may not be able to locate desirable alternative
sites for our facilities as our business continues to grow and failure in relocating our affected
operations could adversely affect our business and operations.
• unanticipated issues in integrating logistics, information, communications and other

systems;
• unanticipated changes in applicable laws and regulations affecting the acquired

business;
• operating risks inherent in the acquired business;
• diversion of the attention and resources of management;
• consumers’ failure to accept product offerings by us or our licensees;
• assumption of liabilities not identified in due diligence; and
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RISK FACTORS
• other unanticipated issues, expenses and liabilities.
In addition, there is no guarantee that once such process has been completed we will operate
in a manner that is more efficient, organized, effective and competitive as a whole.
We may, however, fail to realize these anticipated synergies or they may be less significant than
expected, which could adversely affect our business, financial condition or results of
operations.
Overall tightening of the labor market, increases in labor cost or any possible labor unrest
may affect our business as we operate in a labor-intensive industry.
Our business is labor-intensive and requires a substantial number of personnel. Any failure to
retain stable and dedicated labor by us, our regional operating entities and network partners
may lead to disruption to or delay in our services provided to end customers. We usually need
to hire additional or temporary workers to handle the significant increase in parcel volume
following special promotional events or during peak seasons of e-commerce. We may be
subject to temporary labor shortage during major holiday seasons. We have observed an overall
tightening and increasingly competitive labor market. We have experienced, and expect to
continue to experience, increases in labor costs due to increases in salary, social benefits and
employee headcount and changes in regulatory environment. We and our network partners
compete with other companies in our industry and other labor-intensive industries for labor,
and we may not be able to offer competitive salaries and benefits compared to them. In
addition, some of our employees in the Philippines are unionized. Labor unions in the
Philippines that have been certified as sole and exclusive bargaining agents may request
management of companies to enter into collective bargaining agreements, negotiate
employment terms on behalf of relevant employees and demand higher salaries and benefits,
which could increase our labor costs.
We and our network partners have been subject to labor disputes initiated by our or their
employees and personnel from time to time, although none of them, individually or in the
aggregate, had a material adverse impact on us. We expect to continue to be subject to various
legal or administrative proceedings related to labor dispute in the ordinary course of our
business, due to the magnitude of labor force involved in our network. Any labor unrest
directed against us, our regional operating entities or our network partners could directly or
indirectly prevent or hinder our normal operating activities, and, if not resolved in a timely
manner, lead to delays in fulfilling our customer orders and decreases in our revenue. We, our
regional operating entities and our network partners are not able to predict or control any labor
unrest, especially those involving labor not directly employed by us. Further, labor unrest may
affect general labor market conditions or result in changes to labor laws, which in turn could
materially and adversely affect our business, financial condition and results of operations.
Our business is dependent on the transportation, telecommunication and Internet

infrastructure in countries and regions where we operate.
Our business depends on the performance and reliability of the transportation,

telecommunication and Internet infrastructure in countries and regions where we operate.
Our network covers regions that have historically been underserved by logistics service
providers and often present unique operational challenges, such as underdeveloped
infrastructure or island archipelagos. The expansion of our network in these regions is, to a
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RISK FACTORS
significant extent, dependent on the availability and proper operations of transportation

infrastructure. We face operational challenges including, among others, unanticipated closure
of airport, rail limitations due to unavailability of railcars and adverse weather condition, and
delay in barge shipments caused by high or low seawater levels.
Our business depends on the performance, reliability and security of the telecommunications
and Internet infrastructure in regions where we operate. We may not have access to alternative
networks in the event of disruptions, failures or other problems with the telecommunication
and Internet infrastructure. The failure of telecommunication and Internet network operators to
provide us with the requisite bandwidth could also interfere with the speed and availability of
our platforms. Any of such occurrences could delay or prevent our platform users from
accessing our online platforms and mobile applications, and frequent interruptions could
frustrate customers and discourage them from using our services, which could cause us to lose
customers and harm our results of operations. In addition, we have limited control over the
service fees charged by telecommunication and Internet operators. If the prices we pay for
telecommunications and Internet services rise significantly, our results of operations may be
materially and adversely affected.
The determination of the fair value changes, such as fair value change of our preferred
shares, among other things, and impairment of certain of our assets requires the use of
estimates that are based on unobservable inputs, and therefore inherently involves certain
uncertainty.
We use significant unobservable inputs, such as expected volatility, discount for lack of
marketability, risk-free interest rate, expected rate of return and discount rate, in valuing
certain of our assets and liabilities, including convertible preferred shares, financial assets at
fair value through profit or loss. In particular, fair value change of financial liabilities at fair
value through profit or loss, which is primarily influenced by the fair value change of
convertible preferred shares, may significantly affect our financial position and results of
operations. Accordingly such determination requires us to make significant estimates, which
may be subject to material changes, and therefore inherently involves a certain degree of
uncertainty. For instance, fair value change of financial assets and liabilities at fair value
through profit or loss was nil in 2020. We recorded fair value loss of financial assets and
liabilities at fair value through profit or loss of US$4,383.5 million in 2021, compared to fair
value gain of financial assets and liabilities at fair value through profit or loss of US$3,050.7
million in 2022. Factors beyond our control can significantly influence and cause adverse
changes to the estimates we use and thereby affect the fair value of such assets and liabilities.
Any of these factors, as well as others, could cause our estimates to vary from actual results,
which could materially and adversely affect our results of operation and financial condition. In
addition, the process for determining whether an impairment of financial asset is other-than-
temporary usually requires complex and subjective judgments, which could subsequently prove
to have been wrong.
Our business and the business of our network partners are subject to a broad range of laws
and regulations.
Our business is subject to governmental supervision and regulation by the relevant

governmental authorities. These governmental authorities promulgate and enforce regulations
that cover many aspects of our day-to-day operations such as providing trainings to employees
and preparing various technical and safety plans, and we may fail to fully comply with these
regulations at all times. We are subject to various restrictions in markets in which we operate,
which may limit our ability to replicate our success under the regional sponsor model. See “–
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RISK FACTORS
Any lack of requisite approvals, licenses, permits or filings applicable to the business operation
of ours or our network partners may have a material and adverse impact on our business,
financial condition and results of operations.” and “Regulatory Overview” in Appendix III to
this document.
The PRC Postal Law indicates that express delivery companies cannot engage in “posting and
mail delivery business exclusively operated by postal enterprises”, which are not defined under
the PRC law. If the term is defined in the future and the parcels delivered by us fall into the
defined category, we may be considered in violation of the PRC Postal Law. Noncompliance
with applicable laws, regulations and policies may subject us to administrative proceedings,
fines or other penalties, and materially and adversely impact our business, reputation, financial
condition and results of operations. In addition, in the PRC, each of the vehicles used for road
freight transportation must have a Road Transportation Certificate and the drivers of these
vehicles must have corresponding qualification certificates unless these vehicles are ordinary
freight vehicles with a total mass of 4.5 tons or less. Although we have established an internal
control system to help ensure our compliance with relevant laws and regulations, to renew our
permits and obtain qualification certificates as required, we cannot ensure that we can fully
comply with such requirement all the time considering the periodic renewal requirements, the
employee mobility, and the expansion of our business. If we fail to comply with these
regulations, the competent government authorities may order us to rectify such violations,
impose fines on us, revoke our permits, or suspend our business.
In addition, our value-added services, such as our COD services, are subject to various rules,
regulations and requirements, regulatory or otherwise, governing electronic funds transfers,
which could change or be reinterpreted to make it difficult, costly, or impossible for us to
comply with. If we fail to comply with these rules or requirements, we may be subject to fines
and higher transaction fees and become unable to accept credit and debit card payments from
our customers, process electronic funds transfers or facilitate other types of online payments,
and our business, financial condition and results of operations could be materially and
adversely affected.
Our network partners have broad discretion over their daily operations and make localized
decisions with respect to their facilities, vehicles and hiring and pricing strategies. Their
operations are regulated by various laws and regulations, including local administrative
rulings, orders and policies that are pertinent to their localized express delivery business. Local
regulations may specify the models or types of vehicles to be used in parcel pickup and
delivery services or require our network partners to implement heightened parcel safety
screening procedures, which could materially drive up the operating costs and delivery
efficiency of the pickup and delivery outlets.
New laws and regulations may be enforced from time to time. Uncertainties exist regarding the
interpretation and implementation of current and any future laws and regulations applicable to
our businesses. For example, in Vietnam, the Law on Competition 2018 allowed relevant
authority to prohibit anti-competition agreements. However, the applicable authority, the Viet
Nam Competition Commission, has just been formed since April 1, 2023, and the
corresponding regulations have not been formed as of the date of this document. Therefore, it
remains significant uncertainties with respect to the type of contractual provisions that may be
prohibited under the Law on Competition 2018. We cannot assure you that provisions in our
existing agreements – including our cooperation agreements with network partners – will not
be deemed as “anti-competition agreements” as prohibited under the Law on Competition
2018. See also “Regulatory Overview – Laws and Regulations in Relation to Our Business in
Vietnam” in Appendix III to this document. If relevant authorities promulgate new laws and
regulations that require additional approvals or licenses or imposes additional restrictions on
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RISK FACTORS
our business and operations, they may have the authority, among other things, to levy fines,
confiscate income, revoke business licenses, and require us to discontinue our relevant
business or impose restrictions on the affected portion of our business. Any of these actions by
governments in the jurisdictions where we operate may have a material and adverse effect on
our results of operations. If our regional operating entities or network partners are found to be
in violation of any applicable laws or regulations then in effect, such regional operating entities
or network partners may be subject to similar penalties or administrative orders and may not
be able to continue to deliver satisfactory services or at all. As a result, we may suffer
reputational damages due to negative publicity or compromised service quality.
Any lack of requisite approvals, licenses, permits or filings applicable to the business
operation of ours or our network partners may have a material and adverse impact on our
business, financial condition and results of operations.
We are required to hold a number of licenses and permits in connection with our operation. For
example, in China, a company that provides express delivery services needs to obtain a Courier
Service Operation Permit (快遞業務經營許可證) and make filings with relevant postal
authorities to expand its regions of operation under such permit. Failure to make such filings
may result in a correction order or fines. Companies are also subject to certain capacity
requirements, such as the adequacy of delivery personnel, under the Courier Service Operation
Permit. If any of our Group entities or network partners in the PRC is found to have failed to
meet these requirements, such entity may be subject to a fine up to RMB30,000, its Courier
Service Operation Permits may be revoked, and it cannot re-apply to obtain the permit for a
period of three years. A company with the Courier Service Operation Permit is also required
to maintain its express delivery operations during the validity of such permit. If the permit
holder fails to initiate its operation within six months after obtaining the permit, or if the permit
holder suspends its operations for more than six months without authorization, relevant
authority may cancel the Courier Service Operation Permit. We are currently not aware of any
such cancellation or notice of cancellation.
In Thailand, we cooperate with our network partners to provide express delivery services.
Under Thai laws, a provider of transport management service is subject to the transport
management license regime. The Department of Land Transport explicitly stated in its ruling,
confirming its position that a transport management license is not required in the absence of
any ministerial regulations. As of the date of the document, the Department of Land Transport
has not published any ministerial regulations on the criteria and procedures for obtaining a land
transport management license yet. However, we cannot assure you that we will not be deemed
a provider of transport management service and be required to obtain a transport management
license if and when the ministerial regulations are published. Failure to obtain such license in
time, or at all, may materially and adversely affect our business, financial condition and results
of operations. The interpretation and application of laws and regulations, including the Land
Transport Act and the Vehicle Act B.E. 2522 (1979), remain are still uncertain and evolving.
We may be required to make filings with respect to our cooperation with network partners in
jurisdictions where we operate. As we frequently add new network partners to expand our
network or terminate under-performed network partners, the pool of network partners is
constantly changing, and we cannot assure that such filing are always completed or update to
date. For example, in China, commercial franchising refers to the business activities where an
enterprise that possesses the registered trademarks, enterprise logos, patents, proprietary
technology or any other business resources allows such business resources to be used by
another business operator through a contract and the franchisee follows the uniform business
model to conduct business operation and pay franchising fees according to the contract. We and
our network partners in China are subject to regulations on commercial franchising, and we are
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therefore required to file the cooperation arrangements with network partners with the Ministry
of Commerce or its local counterparts. Otherwise, we may be required to file our commercial
franchising agreements with the Ministry of Commerce or its local counterparts within a
specified time limit and be subject to fines, and if we fail to make the filing within certain
prescribed period, the relevant authority may issue a public announcement. In Malaysia, an
enterprise is required to complete a registration process to allow third parties to use its name
and logos as a franchise. We are required to complete such registration with respect to our
cooperation with network partners in Malaysia. We have submitted the registration application
and expect to complete the procedure in due course.
Our network partners also need to obtain necessary licenses and permits to operate express
delivery and transportation business in jurisdictions such as Thailand, the Philippines,
Indonesia, Vietnam and the PRC. We can provide no assurance that all of our network partners
have obtained all of the licenses and permits necessary for their business. For example, certain
of our network partners carry out their express delivery services while they are still in the
process of obtaining Courier Service Operation Permits in the PRC, and we may be subject to
fines or order of rectification as a result. Failure to obtain such licenses and permits may result
in suspension of operation, and in some jurisdictions, fines or other penalties by government
authorities. Any of these actions by relevant governments may have a material and adverse
effect on our results of operations. See also “Regulatory Overview” in Appendix III to this
document.
We are also subject to a number of requirements with respect to updating our licenses and
certificates, implementing of rules and controls, as well as provisions of trainings applicable
to express delivery service as well as road freight transportation. We cannot guarantee that we
are in full compliance with all such requirements at all time. During the Track Record Period,
information contained in certain licenses, certificates and permits that we obtained has not been
updated in a timely manner, such as the basic corporate information or details of directorship.
We are still in the process of fulfilling such requirements, and failure to complete the
registration update in a timely manner may cause administrative fines and penalties.
We cannot assure you that we have obtained all the permits or licenses required for conducting
our business in all jurisdictions where we operate, or will be able to maintain our existing
licenses or obtain new ones. As we grow and expand, we continue to apply for new licenses
and certificates, as well as renew our existing ones. Some of our filings or application with
respect to applying or renewing some of the licenses are still under review. There is no
guarantee that we will be able to obtain such license. If any government of any other
jurisdictions in which we operate (i) considers that we historically operated, or are operating
without proper or adequate approvals, licenses or permits, (ii) promulgates new laws and
regulations that require additional approvals or licenses or impose additional restrictions on the
operation of any part of our business, or (iii) considers that we have not duly renewed these
licenses in a timely manner, it has the power, among other things, to levy fines, confiscate our
income, revoke our business licenses, and require us to discontinue our relevant business or
impose restrictions on the affected portion of our business. In particular, legal systems in many
jurisdictions in which we operate are not as developed as in some other jurisdictions. Statutory
laws and regulations are subject to judicial interpretation and enforcement and may not be
applied consistently due to the lack of clear guidance on statutory interpretation. As a result,
substantial uncertainties exist regarding the interpretation and implementation of current and
any future laws and regulations applicable to our businesses. Any of these actions by relevant
governments may have a material and adverse effect on our results of operations.
We are subject to risks inherent in the logistics industry, including personal injury, product
damage, and transportation-related incidents.
We handle a large volume of parcels across our network, and face challenges with respect to
the protection and examination of these parcels. Parcels in our network may be stolen, damaged
or lost for various reasons, and we, our regional operating entities and/or our network partners
may be perceived or found liable for such incidents. We may fail to screen parcels and detect
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unsafe or prohibited/restricted items. Hazardous items, such as flammables and explosives,

toxic or corrosive items and radioactive materials, may damage other parcels in our network,
injure recipients and harm the personnel and assets of our Group, regional operating entities
and/or network partners. Furthermore, if we fail to prevent prohibited or restricted items from
entering into our network and if we participate in the transport and delivery of such items, we
may be subject to administrative or even criminal penalties, and if any personal injury or
property damage is concurrently caused, we may be further liable for civil compensation.
The delivery of parcels also involves inherent risks. We constantly have a large number of
vehicles and personnel in transportation. We are subject to risks associated with transportation
safety, and the insurance maintained by us may not be sufficient to fully cover the damages
caused by transportation-related injuries or loss. From time to time, our vehicles and personnel
may be involved in transportation accidents, and the parcels carried by them may be lost or
damaged. In addition, frictions or disputes may occasionally arise from the direct interactions
between our pickup and delivery personnel with parcel senders and recipients. Personal injuries
or property damages may arise if such frictions or disputes escalate.
Any of the foregoing could disrupt our services, cause us to incur substantial expenses and
divert the time and attention of our management. We, our regional operating entities and our
network partners may face claims and incur significant liabilities if found liable or partially
liable for any of injuries, damages or losses. Claims against us may exceed the amount of our
insurance coverage, or may not be covered by insurance at all. Governmental authorities may
also impose significant fines on us or require us to adopt costly preventive measures.
Furthermore, if our services are perceived as insecure or unsafe by our end customers,
e-commerce platforms and consumers, our parcel volume may be reduced, and our business,
financial condition and results of operations may be materially and adversely affected.
Damages to brand image and corporate reputation could materially and adversely impact our
business.
We believe our brand image and corporate reputation will play an increasingly important role
in enhancing our competitiveness and maintaining business growth. Many factors, some of
which are beyond our control, may negatively impact our brand image and corporate
reputation. These factors include our ability to provide superior services to our customers,
successfully conduct marketing and promotional activities, manage relationship with and
among our regional sponsors and network partners, address complaints and events of negative
publicity, maintain positive perception of our company, our peers and the express delivery
industry in general. Any actual or perceived deterioration of our service quality, which is based
on an array of factors including customer satisfaction, rate of complaint or rate of accident,
could subject us to damages such as loss of important customers.
Negative publicity about us, including our services, management, business model and
practices, compliance with applicable rules, regulations and policies or our network partners
may materially and adversely harm our brand and reputation and have a material adverse effect
on our business. There is no assurance that we will be able to mitigate the impact of such
negative publicity within a reasonable period of time, or at all. Additionally, allegations,
directly or indirectly against us, may be posted on the Internet by anyone on a named or
anonymous basis, and can be quickly and widely disseminated. Information posted may be
inaccurate, misleading and adverse to us, and it may harm our reputation, business or
prospects. The harm may be immediate without affording us an opportunity for redress or
correction. Our reputation may be negatively affected as a result of the public dissemination
of negative and potentially inaccurate or misleading information about our business and
operations. Negative publicity against us or our peers could cause damages to our corporate
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reputation and changes to the government policies and regulatory environment. If we are
unable to promote our brand image and protect our corporate reputation, we may not be able
to maintain and grow our customer base, and our business and growth prospects may be
adversely affected.
We may not be able to maintain our corporate culture, which has been a key to our success.
Since our inception, our corporate culture has been defined by our values, and we believe that
our culture has been critical to our success. In particular, our corporate culture has helped us
serve our customers, and attract, retain and motivate employees, regional sponsors and network
partners. We face a number of challenges that may affect our ability to maintain our corporate
culture, including:
• failure to identify and promote people to leadership positions in our organization who
share our culture and values;
• the increasing number and geographic diversity of our regional sponsors and network
partners;
• competitive pressures to move in directions that may divert us from our values;
• the continued challenges of an ever-changing business environment;
• the potential pressure from the public markets to focus on short-term results instead of
long-term value creation; and
• the increasing need to develop expertise in new areas of business that affect us.
If we are not able to maintain our corporate culture or if our culture fails to deliver the
long-term results we expect to achieve, our business and prospects may be materially and
adversely affected.
We face risks related to severe weather conditions and other natural disasters, health
epidemics and other outbreaks, such as the COVID-19 pandemic, which could significantly
disrupt our operations.
Severe weather conditions and other natural or man-made disasters, including storms, floods,
fires, earthquakes, typhoons, epidemics, pandemics, conflicts, unrest, or terrorist attacks, may
disrupt our business and result in decreased revenues. Customers may reduce their demand for
logistics services or shipments, or our costs to operate our business may increase, either of
which could have a material adverse effect on us. Any such incidents could materially and
adversely affect our ability to source services and supplies from our suppliers or to distribute
packages throughout our markets.
The COVID-19 pandemic has resulted in significant disruptions in the global economy. We
temporarily closed our branch offices, sorting centers and pickup and delivery outlets in the
first quarter of 2020. Since the second quarter of 2020, the markets where we have our core
operations continue to be subject to the impact of COVID-19 pandemic. The timelines for
business resumption varied across different localities and countries. Our branch offices, sorting
centers and pickup and delivery outlets closed and opened in accordance with measures
adopted by their respective local government authorities.
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Due to the surges in the number of cases of COVID-19 in December 2022 and January 2023
in China, we experienced temporary labor shortage, which has caused delays in our express
delivery service. Our operations, results of operations and financial condition could be further
adversely affected if a wide spread of COVID-19 pandemic happens again in the locations
where we have operations.
We have made, and may need to continue to make, substantial capital expenditures, and we
will face risks that are inherent to such investment.
To carry out our strategies and expansion plan, we have incurred, and may continue to incur,
capital expenditures on acquisition of land use rights, construction of facilities and investment
in delivery infrastructure in connection with the consolidation and organic growth of our
business. We paid an aggregate of US$257.7 million, US$513.7 million and US$573.2 million
in 2020, 2021 and 2022, respectively, for purchase of property, plant and equipment. To
facilitate our future expansion, we may need to continue to make substantial capital
expenditures.
Significant capital expenditures are associated with certain inherent risks. We may not have the
resources to fund such investment. Even if we have sufficient funding, assets that best suit our
needs may not be available at reasonable prices or at all. We may also incur capital
expenditures earlier than all of the anticipated benefits, and the return on these investments
may be lower, or may be realized more slowly, than we expected. The carrying value of the
related assets may be subject to impairment, which may adversely affect our financial
condition and operating results.
We may not be able to obtain additional capital when desired, on favorable terms or at all.
We may require additional cash capital resources in order to fund future growth and the
development of our businesses, including investments in equipment, land, facilities and
technological systems to remain competitive. If our cash resources are insufficient to satisfy
our cash requirements, we may seek to issue additional equity or debt securities or obtain new
or expanded credit facilities. Our ability to obtain external financing in the future is subject to
a variety of uncertainties, including our future financial condition, results of operations, cash
flows, share price performance, liquidity of international capital and lending markets,
governmental regulations over foreign investment and the e-commerce industry. In addition,
incurring indebtedness would subject us to increased debt service obligations and could result
in operating and financing covenants that would restrict our operations. There can be no
assurance that financing will be available in a timely manner or in amounts or on terms
acceptable to us, or at all. Any failure to raise needed funds on terms favorable to us, or at all,
could severely restrict our liquidity as well as have a material adverse effect on our business,
financial condition and results of operations. Moreover, issuance of equity or equity-linked
securities could result in significant dilution to our existing shareholders.
We may fail to successfully make necessary or desirable strategic alliances, acquisitions or

investments, and we may not be able to achieve the benefits we expect from the alliances,
acquisition or investments we make.
We may pursue selected strategic alliances and potential strategic acquisitions that are
complementary to our business and operations, including opportunities that can help us further
expand our service offerings and enhance our research and development and technology
innovations.
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RISK FACTORS
Strategic alliances with third parties could subject us to a number of risks, including risks
associated with sharing proprietary information, non-performance or default by counterparties,
and increased expenses in establishing these new alliances, any of which may materially and
adversely affect our business. We may have limited ability to control or monitor the actions of
our strategic partners. To the extent a strategic partner suffers any negative publicity as a result
of its business operations, our reputation may be negatively affected by virtue of our
association with such party. To expand, consolidate and optimize our delivery capacity in key
geographic areas, we conducted certain acquisitions during the Track Record Period and in
2023. See “History and Corporate Structure.” If our investments do not subsequently generate
the anticipated financial performance, we may need to revalue or write down the value of
goodwill and other intangible assets in connection with such acquisitions, which would harm
our results of operations. See “Risks Related to Our Business and Industry – We may fail to
achieve the anticipated synergies and other benefits from the acquisition.” in this section.
In addition, we may fail to achieve the anticipated synergies and other benefits from
acquisitions, which may adversely impact our business and results of operations.
From time to time, we make acquisitions as we expand. For example, we completed the
acquisitions of the SEA entities and BEST Express China in December 2021. See “History and
Corporate Structure – Major Acquisitions, Disposals and Mergers.” Our future success,
including the anticipated benefits and cost savings, depends, in part, on our ability to integrate
the acquired business and optimize our operations. The potential difficulties of integrating the
operations of an acquired business and realizing our expectations for an acquisition, including
the benefits that may be realized, include, among other things failure to implement our business
plan for the combined business, delays or difficulties in completing the integration of acquired
companies or assets, and higher than expected costs, lower than expected cost savings or a need
to allocate resources to manage unexpected operating difficulties.
Our business depends on the continuing efforts of our management and our ability to attract,
train and retain qualified personnel.
Our business depends on the continuing efforts of our management. In particular, Mr. Li, our
executive Director, Chief Executive Officer, chairman of the Board and our Controlling
Shareholder, has been crucial to the development of our culture and strategic direction. If one
or more of our management members were unable or unwilling to continue their employment
with us, we may not be able to replace them in a timely manner, or at all. Members of our senior
management team or other key personnel may also resign and join a competitor or form a
competing company. Regional sponsors who help execute our regional strategy may also
terminate their relationships with us voluntarily or involuntarily. The loss of qualified
executives, regional sponsors and employees, or an inability to attract, retain, and motivate
high-quality executives and employees required for the planned expansion of our business, may
harm our operating results and impair our ability to grow.
We intend to hire and retain additional qualified employees to support our operations and
planned expansion. Our future success depends, to a significant extent, on our ability to attract,
train, retain and motivate qualified personnel, particularly management, operational personnel
and regional sponsors with expertise in the express delivery industry, the e-commerce industry
or markets that we plan to expand into. Our experienced mid-level managers are instrumental
in executing our business plans, implementing our business strategies and supporting our
operations and growth, and we cannot assure you that we will be able to attract or retain these
qualified personnel.
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RISK FACTORS
We have granted, and may continue to grant, share incentives, which may result in increased
share-based compensation expenses and negatively impact our results of operations.
We adopted certain share incentive schemes for the purpose of granting share based
compensation awards to employees, directors, consultants, regional sponsors and network
partners to incentivize their performance and align their interests with ours. In 2020, 2021 and
2022, we recorded share-based compensation expenses related to employee benefits of
US$161.1 million, US$367.3 million and US$244.1 million, respectively. We believe the
granting of share-based compensation is of significant importance to our ability to attract and
retain key personnel, parties and employees, and we will continue to grant share-based
compensation awards in the future. As a result, our expenses associated with share-based
compensation may increase, which may have an adverse effect on our results of operations.
Any newly granted RSUs, options, or any other share-based compensations that we may grant
from time to time may result in an increase in our issued share capital when vested, which in
turn may result in a dilution of our shareholders’shareholding interest in our Company and a
reduction in earnings per share.
We may not be able to prevent others from unauthorized use of our intellectual property,
which could harm our business and competitive position.
We regard our trademarks, domain names, trade secrets, proprietary technologies and other
intellectual property as critical to our business. We rely on a combination of intellectual
property laws and contractual arrangements to protect our proprietary rights. It is often difficult
to register, maintain and enforce intellectual property rights in some of the markets where we
operate. Statutory laws and regulations are subject to judicial interpretation and enforcement
and may not be applied consistently due to the lack of clear guidance on statutory
interpretation. Confidentiality agreements and license agreements may be breached by
counterparties, and there may not be adequate remedies available to us for any such breach.
Accordingly, we may not be able to effectively protect our intellectual property rights or to
enforce our contractual rights in all markets where we operate. Policing any unauthorized use
of our intellectual property is difficult and costly and the steps we have taken may be
inadequate to prevent the misappropriation of our intellectual property. In the event that we
resort to litigation to enforce our intellectual property rights, such litigation could result in
substantial costs and a diversion of our managerial and financial resources. We can provide no
assurance that we will prevail in such litigation. In addition, our trade secrets may be leaked
or otherwise become available to, or be independently discovered by, our competitors. Any
failure in protecting or enforcing our intellectual property rights could have a material adverse
effect on our business, financial condition and results of operations.
We may be accused of infringing the intellectual property rights of others.
From time to time, third parties may claim that we have infringed their intellectual property
rights. Although we take steps to avoid knowingly violating the intellectual property rights of
others, third parties may nonetheless claim infringement. Existing or future infringement
claims against us, regardless of their validity, may be expensive to defend and may divert the
attention of our management away from business operations. If a claim of infringement brought
against us is successful, we may be required to pay substantial penalties or other damages and
fines, enter into license agreements which may not be available on commercially reasonable
terms or at all or be subject to injunctions or court orders.
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RISK FACTORS
We have limited insurance coverage which could expose us to significant costs and business
disruption.
We maintain various insurance policies to safeguard against risks and unexpected events, such
as insurance over the equipment in our sorting centers as well as accident insurance. We have
purchased compulsory motor vehicle liability insurance and commercial insurance such as
automobile third-party liability insurance, vehicle loss insurance and driver/passenger liability
insurance. We also provide social security insurance under applicable laws, including pension
insurance, unemployment insurance, work-related injury insurance and medical insurance for
our employees. We do not maintain business interruption insurance nor do we maintain product
liability insurance or key-man insurance. Sometimes, relevant insurance policies may not be
available even if we are willing to procure additional insurance. We cannot assure you that our
insurance coverage is sufficient to prevent us from any loss or that we will be able to
successfully claim our losses under our current insurance policies on a timely basis, or at all.
If we incur any loss that is not covered by our insurance policies, or the compensated amount
is significantly less than our actual loss, our business, financial condition and results of
operations could be materially and adversely affected. Furthermore, our claim records may
affect the premiums which insurance companies may charge us in the future. We may not be
able to maintain insurance of the types or at levels which we deem necessary or adequate or
at rates which we consider reasonable, in particular in case of significant increases in premium
levels upon the renewal of our insurance policies.
We are subject to anti-corruption, anti-bribery, governmental economic sanctions and other

laws and regulations, and third party payment channels we cooperate with are subject to
anti-money laundering laws.
We are subject to anti-corruption, anti-bribery, economic and trade sanctions laws and other
relevant laws and regulations in various jurisdictions. For example, U.S. economic sanctions
prohibit the provision of products and services to countries, governments, and persons targeted
by U.S. sanctions. United Kingdom financial sanctions and European Union sanctions also
have similar regime to prohibit the provision of products and services to countries,
governments and persons on their respective target list. Although we perform compliance
processes and maintain internal control systems, we may be subject to investigations and
proceedings by governmental authorities for alleged infringements of these laws and
regulations if our processes or systems are not conducted or are not operating properly. These
proceedings may result in fines or other liabilities and could have a material and adverse effect
on our reputation, business, financial condition, results of operations and prospects. If any of
our subsidiaries, employees or other persons engage in fraudulent, corrupt or other unfair
business practices or otherwise violate applicable laws, regulations or internal controls, we
could become subject to one or more enforcement actions or otherwise be found to be in
violation of such laws and regulations, which may result in adverse media coverage,
investigations, severe administrative, civil and possibly criminal sanctions, penalties, fines and
sanctions and in turn adversely affect our reputation, business, financial condition, results of
operations and prospects.
In addition, we currently cooperate with third party payment channels to process payments for
us. These third party payment channels are subject to anti-money laundering obligations under
applicable anti-money laundering laws and regulations, which require them to comply with
certain anti-money laundering requirements, including the establishment of a customer
identification procedure, the monitoring and reporting of suspicious transactions, the
preservation of customer information and transaction records, and the provision of assistance
to the public security department and judicial authority in investigations and proceedings in
relation to anti-money laundering matters. If a third-party payment channel fails to perform its
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RISK FACTORS
anti-money laundering obligations, it may be subject to fines or other proceedings in

accordance with the relevant regulations. If any of our third-party payment channel fails to
comply with applicable anti-money laundering laws and regulations, our reputation could
suffer and we could become subject to regulatory intervention, which could have a material and
adverse effect on our business, financial condition, results of operations and prospects.
Our business and reputation may be harmed by unethical or anticompetitive business

conduct within or in connection with our network.
There has been and may continue to be unethical or anticompetitive conduct, misconduct or
unlawful behavior by our employees within, or in connection with, our network, such as with
respect to the procurement of resources and the pricing of delivery service charges. The
existing protocols and disciplinary measures governing the business conduct of our employees
and our customers may not be sufficient to prevent them or their personnel from acting
unethically or anti-competitively. Such conduct may include the mishandling of funds or
accepting unlawful kick-backs during our raw material or equipment procurement. We are also
aware of certain e-commerce merchants placing fabricated orders, such as parcels with
valueless content, to themselves or to their designated parties with the intent to generate
inflated sales records and consumer reviews and create perceived popularity among online
consumers. These fabricated orders do not directly impact our revenues as our regional
operating entities and network partners are generally able to collect service charges from these
merchants. It is extremely difficult for us, our regional operating entities and our network
partners to distinguish these orders from genuine orders through the ordinary parcel screening
procedures. We may be subject to heightened compliance costs or loss of business due to
reduced e-commerce business volume if any government cracks down on these unethical
practices. We also have little control over third parties involved in unethical or anticompetitive
business conduct targeted at or in connection with our network, such as non-compliance with
laws, third-party sabotage or allegations intended to harm us, our regional operating entities,
or our network partners. We may incur substantial monetary losses and our reputation may
suffer as a result of such conduct. We may also incur significant liabilities and penalties arising
from such unethical conduct and may be required to allocate significant resources and incur
material expenses to prevent such unethical or anticompetitive conduct in the future.
We rely on certain key operating metrics to evaluate the performance of our business. Any
real or perceived inaccuracies in such metrics may harm our reputation and negatively affect
our business.
We rely on certain operating metrics, such as parcel volume, to evaluate the performance of our
business. Our operating metrics may differ from estimates published by third parties or from
similarly titled metrics used by our competitors due to differences in methodology and
assumptions. We calculate these operating metrics using internal company data that has not
been independently verified. For example, our parcel volume data is derived based on the
number of parcels collected by our regional operating entities and network partners using our
waybills. If we discover material inaccuracies in the operating metrics we use, or if they are
perceived to be inaccurate, our reputation may be harmed and our evaluation methods and
results may be impaired, which could negatively affect our business. If investors make
investment decisions based on operating metrics we disclose that are inaccurate, we may also
face potential lawsuits or disputes.
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RISK FACTORS
We, our directors, senior management and our regional sponsors, regional operating entities
and network partners may be subject to claims, lawsuits and other legal proceedings that may
adversely affect our reputation, business and results of operations.
We may be, and in some instances have been, subject to claims, lawsuits including class actions
and individual lawsuits, government investigations, and other proceedings relating to
intellectual property, consumer protection, privacy, labor and employment, import and export
practices, competition, securities, tax, marketing and communications practices, commercial
disputes, and other matters. The number and significance of our legal disputes and inquiries
have increased as we have grown larger, as our business has expanded in scope and geographic
reach, and as our services have increased in complexity. For example, in December 2021 and
January 2022, two independent third parties claimed that they were entitled to certain equity
interest in one of our controlled affiliated entities in the PRC. While we have obtained final and
binding judgments denying their claims in June 2023, we cannot assure you we will not be
subject to claims of similar or greater significance in the future, or if we will be able to
successfully defend ourselves in those actions. In addition, there is also substantial uncertainty
regarding the scope and application of many laws and regulations that we are subject to, which
increases the risk of claims alleging violations of those laws and regulations.
Regardless of outcome, legal proceedings may have a material and adverse impact on us due
to their costs, diversion of our resources, and other factors. We may decide to settle legal
disputes on terms that are unfavorable to us. Furthermore, if any litigation to which we are a
party is resolved adversely, we may be subject to an unfavorable judgment that we may not
choose to appeal or that may not be reversed upon appeal. In addition, the terms of any
settlement or judgment in connection with any legal claims, lawsuits, or proceedings may
require us to cease some or all of our operations, or pay substantial amounts to the other party
and could materially and adversely affect our business, financial condition and results of
operations.
Our use of certain leased properties could be challenged by third parties or governmental
authorities, which may cause interruptions to our operations.
In general, we conduct customary due diligence on relevant real estate properties before
entering into the lease agreements in accordance with local market practice. Nevertheless, we
cannot assure you that our reviews, surveys or inspections would have revealed all defects or
deficiencies affecting our leased properties, including the titles thereof. Neither can we assure
you that the lessors have taken all necessary actions to perfect their titles, ensure mandatory
fire-control and explosion insurance, file fire-control registration or satisfy relevant
requirements under applicable laws and regulations. If (i) our lessors are not the owners of the
properties and they have not obtained consents from the owners or their lessors or permits from
the relevant governmental authorities, or (ii) our lessors have granted certain security or
encumbrances over the properties and they are in default, causing the lease property to be
executable by the authorities, our leases could be invalidated. In the event that our use of
properties is successfully challenged or that our leases are found invalid, we may be subject
to fines and forced to relocate from the affected properties. In addition, we may become
involved in disputes with the property owners or third parties who otherwise have rights to or
interests in our leased properties. We cannot assure you that we will be able to find suitable
replacement sites on terms acceptable to us on a timely basis, or at all, or that we will not be
subject to material liability resulting from third parties’ challenges on our use of such
properties. Also, in the event that the actual use of our leased properties is inconsistent with
the designated use specified by relevant authorities or our leased properties are on allocated
land (劃撥土地), the competent authorities may require the lessors to return the land and
impose fines on the lessors, or confiscate the proceeds from the leasing of the properties and
impose fines on the lessor if such properties are leased without their consent or require the
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RISK FACTORS
lessors to hand in such income, as applicable. Therefore, the relevant lease agreements may be
deemed to be in breach of the law and therefore be void. Certain lessors of our leased properties
in Malaysia have not provided us with certain certificates under applicable laws or leased the
properties to us in contravention of permitted category of land use for such properties. Further,
we have not obtained certain business premises licences from the relevant local councils and
authorities in accordance with the Local Government Act 1976 and the relevant by-laws and
regulations for certain material premises we rent in Malaysia. Pursuant to Malaysian laws, a
Certificate of Completion and Compliance or Certificate of Fitness for Occupation should be
obtained before a building can be occupied. Certain lessors of the leased properties that we
deem important to our operation in Malaysia have not provided us with these certificates under
applicable laws. Lack of such certificate may subject us to a fine of up to RM1.25 million
(approximately US$27,000). For certain leased properties that we plan to move out from soon,
including a leased property in Malaysia, we do not have all necessary registration, filings,
proof of underlying title or the most up-to-date premise-specific business certificate. As of the
Latest Practicable Date, no penalty or enforcement action had been imposed on the properties
we occupy or us by Malaysian authorities in relation to the outstanding certificates for certain
properties or the outstanding business premises licences. In addition, some of our leasehold
interests in leased properties have not been registered with the relevant PRC governmental
authorities as required by relevant PRC laws. The failure to register leasehold interests after
receiving notice from the relevant PRC governmental authorities may expose us to potential
fines. As of the Latest Practicable Date, some of the lessors of our leased properties had not
provided us with their property ownership certificates or other documentation proving their
right to lease those properties to us. Some of our leased properties in certain jurisdictions in
which we operate do not have title certificates or approvals and the owner or lessor of such
property may not have the right to lease such property to us.
To our knowledge, for the pickup and delivery outlets operated by our network partners, some
of the lessors of the leased pickup and delivery outlets have not provided our network partners
with their property ownership certificates or other documentation proving their right to lease
those properties. If our network partners were to find replacement premises for their outlets due
to any lease deficiencies, the daily operations of such outlets may be negatively affected.
A severe or prolonged economic downturn in any countries or regions where we operate or

globally could materially and adversely affect our business and our financial condition.
The success of our business depends, to a significant extent, on the development of

e-commerce industry and the level of consumer demand and discretionary spending in the
markets where we operate. Even before the outbreak of COVID-19 pandemic, the global
macroeconomic environment was facing numerous challenges. There is considerable
uncertainty over the long-term effects of the expansionary monetary and fiscal policies which
had been adopted by the central banks and financial authorities of some of the world’s leading
economies. Additionally, constant changes in global trade practices and foreign policies, such
as trade protectionism and ongoing trade disputes, including tariff actions announced by the
United States, the PRC and certain other countries, may further affect the PRC economy as well
as the global markets. Moreover, regional political and trade tensions could reduce levels of
investments, trades and other economic activities, which would have a material adverse effect
on global economic conditions and the stability of global financial markets. Unrest, terrorist
threats and the potential for war in the Middle East and elsewhere may increase market
volatility across the globe. Economic conditions in markets where we operate are sensitive to
global economic conditions, as well as changes in domestic economic and political policies and
the expected or perceived overall economic growth rate in Southeast Asia countries and China.
Any severe or prolonged slowdown in the economy may materially and adversely affect our
business, results of operations and financial condition.
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RISK FACTORS
We collect, process and use data, some of which contains personal information. Any privacy
or data security breach could damage our reputation and brand and substantially harm our
business and results of operations.
We have access to a large amount of confidential information in our day-to-day operations.

Each waybill contains the names, addresses, phone numbers and other contact information of
the sender and recipient of a parcel. The content of the parcel may also constitute or reveal
confidential information. The proper use and protection of confidential information are
essential to maintaining customer trust and confidence in us.
Our technology system also processes and stores a significant amount of confidential
information and data for the proper functioning of our network. Security breaches and hackings
to our system might result in a compromise to the technology that we use to protect confidential
information. We may not be able to prevent third parties, especially hackers or other
individuals or entities engaging in similar activities, from illegally obtaining the confidential
information. Such individuals or entities may further engage in various other illegal activities
using such information. On the other hand, as each parcel moves through our network from
pickup to delivery, a large number of personnel handle the parcel and have access to the
relevant confidential information. Some of them may misappropriate the confidential
information, although we have adopted security policies and measures. Most of the delivery
and pickup personnel are not our employees, which makes it more difficult for us to implement
sufficient and effective control over them.
Practices regarding the collection, use, storage, transmission and security of personal
information have recently come under increased public scrutiny. Relevant regulatory
frameworks worldwide are rapidly evolving and are likely to remain uncertain for the
foreseeable future. Government bodies and agencies in Indonesia, Thailand, the Philippines,
the PRC and Vietnam have in the past years adopted, and may in the future adopt, new laws
and regulations on data protection and data privacy, all of which may subject us to additional
compliance costs, divert management attention and adversely impact our results of operations.
For example, in Thailand, on May 27, 2019, the Personal Data Protection Act B.E. 2562 (2019)
(the “PDPA”) was published on the national gazette. After publication, there is a transition
period of one year following publication in the national gazette for key provisions under the
PDPA to become enforceable, enabling enterprises to prepare to be in compliance with the
PDPA. The transition period was extended until May 31, 2022, and the PDPA has become
effective on June 1, 2022. In Vietnam, with the recent passage of Decree No.53/2022/ND-CP
(taking effect from October 1, 2022), the Vietnamese Government requires that personal data
belonging to internet users in Vietnam, certain data generated by internet users in Vietnam and
data on such users’ relationships (such as friends and groups with whom such users interact),
of regulated entities be stored in Vietnam. The increased focus, scrutiny and enforcement,
including more frequent inspections, could increase our compliance costs and subject us to
heightened risks and challenges associated with data security and protection. In Indonesia, the
Indonesian Government promulgated Law of the Republic of Indonesia No. 27 of 2022 on the
Protection of Personal Data (“PDP Law”), which came into force on October 17, 2022. The
controller, processor and other parties related to the processing of Personal Data must comply
to the provisions of the PDP Law at the latest within 2 years of the promulgation of the PDP
Law, i.e. no later by October 17, 2024. The PDP Law also provided that additional provisions
on certain technical matters will be regulated in the implementing regulations (government
regulation) of the PDP Law, which would cover among others: (i) filing on the objection of
automatic personal data processing; (ii) violation on personal data processing as well as its
compensation procedures; (iii) rights of a personal data subject to use and circulate personal
data; (iv) implementation of personal data processing; (v) notification procedures on the
storing, transfer, deletion, or destruction of personal data; (vi) personal data protection officer;
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RISK FACTORS
(vii) transfer of personal data; and (viii) administrative sanctions. However, until the Latest
Practicable Date, the Indonesian Government has not issued any further government
regulations to serve as the implementing regulations to the PDP Law. If we fail to comply with
any of these laws, regulations, standards, or other obligations, or such public representations,
or are alleged to have done so, we may be subject to investigations, enforcement actions, civil
litigation, fines, and other penalties, all of which may generate negative publicity and have a
negative impact on our business.
Furthermore, as the interpretation and application of many laws and regulations relating to
privacy, data protection, and data security, along with industry standards, are uncertain, it is
possible that these laws and regulations may be interpreted and applied in a manner that is
inconsistent with our existing data management practices or the features of our products, and
we could face fines, lawsuits, regulatory investigations, and other claims and penalties, and we
could be required to fundamentally change our products or our business practices, which could
have an adverse effect on our business. Any inability to adequately address privacy, data
protection, and data security concerns, even if unfounded, or any actual or perceived failure to
comply with applicable privacy, data protection, and data security laws, regulations, and other
obligations, could result in additional cost and liability to us, damage our reputation, inhibit
sales, and adversely affect our business. Privacy, data protection, and data security concerns,
whether valid or not valid, may inhibit market adoption of our products. If we are not able to
adjust to changing laws, regulations, and standards related to these matters, our business may
be harmed.
Complying with evolving laws and regulations regarding cybersecurity, information security,
privacy and data protection and other related laws and requirements may be expensive and
may force us to make adverse changes to our business. Many of these laws and regulations
are subject to change and uncertain interpretation, and any failure or perceived failure to
comply with these laws and regulations could result in negative publicity, legal proceedings,
suspension or disruption of operations, increased cost of operations, or otherwise harm our
business.
Laws and regulations governing cybersecurity, information security, privacy and data
protection, the use of the Internet as a commercial medium, the use of data in artificial
intelligence and machine learning, and data sovereignty requirements are rapidly evolving,
extensive, complex, and include inconsistencies and uncertainties. When providing express
delivery services, we have access to various operational and other data of shippers, buyers on
e-commerce platforms, employees and others. If we are deemed to be a critical information
infrastructure operator, we would be required to follow applicable cybersecurity review and/or
extra mandatory protective procedures. During such procedures, we may be required to
suspend providing any existing or new services to shippers and/or experience other disruptions
of our operations, and such review could also result in negative publicity with respect to our
Company and diversion of our managerial and financial resources.
On June 10, 2021, the Standing Committee of the National People’s Congress of China
promulgated the PRC Data Security Law, which became effective in September 2021. The PRC
Data Security Law provides for data security and privacy obligations on entities and
individuals carrying out data processing activities, introduces a data classification and
hierarchical protection system based on the importance of data in economic and social
development, as well as the degree of harm it will cause to national security, public interests,
or legitimate rights and interests of individuals or organizations when such data is tampered
with, destroyed, leaked, or illegally acquired or used, provides for a national security review
procedure for those data activities which may affect national security and imposes export
restrictions on certain data and information.
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RISK FACTORS
On November 14, 2021, the CAC commenced to publicly solicit comments on the Regulations
on the Administration of Cyber Data Security (Draft for Comments) (網絡數據安全管理條例
(徵求意見稿)) (“Draft Data Security Regulations”). The Draft Data Security Regulations
differentiates “listing in Hong Kong” from “listing in a foreign country,” the latter of which
was mentioned in the Review Measures (as defined below). According to the Draft Data
Security Regulations, data processors shall, in accordance with relevant state provisions, apply
for cybersecurity review when carrying out the following activities: (i) the merger,
reorganization or separation of Internet platform operators that have acquired a large number
of data resources related to national security, economic development or public interests, which
affect or may affect national security; (ii) data processors that handle personal information of
more than one million people contemplating to list its securities on a foreign stock exchange;
(iii) data processors contemplating to list its securities on a stock exchange in Hong Kong,
which affects or may affect national security; and (iv) other data processing activities that
affect or may affect national security. According to the PRC National Security Law (中華人民
共和國國家安全法), national security refers to a status in which the regime, sovereignty, unity,
territorial integrity, welfare of the people, sustainable economic and social development, and
other vital interests of the state are relatively not in danger and not threatened internally or
externally and the ability to maintain a sustained security status. However, the criteria for
determining “affect(s) or may affect national security” as stipulated in the Draft Data Security
Regulations, are still subject to further clarification by the CAC.
On December 28, 2021, the Cyberspace Administration of China, or the CAC, the NDRC, the
MIIT, and several other administrations jointly promulgated the Cybersecurity Review
Measures (網絡安全審查辦法), or the Review Measures, which became effective on February
15, 2022. According to the Review Measures, (i) if a critical information infrastructure
operator purchases network products and services or an online platform operator conducts data
processing, either of which affects or may affect national security, a cybersecurity review shall
be carried out according to the Review Measures; (ii) an issuer who is a Internet platform
operator holding personal information of more than one million shall file for a cybersecurity
review with respect to its proposed listing on a foreign stock exchange; and (iii) the relevant
PRC governmental authorities may initiate cybersecurity review if such governmental
authorities determine that the issuer’s network products or services, or data processing
activities affect or may affect national security. These and other similar legal and regulatory
developments could lead to legal and economic uncertainty, affect how we design our IT
systems, how we operate our business, how our business partners and shippers process and
share data, how we process and use data, and how we transfer personal data from one
jurisdiction to another, which could negatively impact demand for our solutions. We may incur
substantial costs to comply with such laws and regulations, to meet the demands of our
customers relating to their own compliance with applicable laws and regulations, and to
establish and maintain internal compliance policies.
On July 7, 2022, the CAC promulgated the Data Outbound Transfer Security Assessment
Measures (數據出境安全評估辦法) (the “Security Assessment Measures”), which took effect
on September 1, 2022. The Security Assessment Measures require that any data processor that
processes or exports personal information exceeding certain volume threshold under such
measures shall apply for security assessment by the CAC before transferring any personal
information outbound. The security assessment requirement also applies to any transfer of
important data outside of China. J&T International Logistics has completed the self-assessment
and determined that we are not required to apply for security assessment under the Security
Assessment Measures. Neither our other entities engage in any cross-border transfer of
personal information or important data that would trigger CAC’s security assessment
application. As advised by our PRC Legal Adviser, the Security Assessment Measures do not
apply to us currently. On February 24, 2023, the CAC published the finalized Measures on
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RISK FACTORS
Standard Contract for the Outbound Cross-Border Transfer of Personal Information (《個人信
息出境標準合同辦法》) (the “Standard Contract Measures”), which became effective on
June 1, 2023, with a built-in six-month grace period (i.e., up to December 1, 2023). Under the
Standard Contract Measures, handlers of personal information (“PI”) that do not meet the
threshold requirements under the Security Assessment Measures and have not obtained a PI
protection certification from a qualified certification institution designated by the CAC, but
that nevertheless engage in the transfer of PI out of China based on contractual arrangements
must (1) execute standard form contracts that strictly comply with the “Standard Contract”
published by the CAC with the overseas recipients of the PI that the PI handlers transfer out
of China; (2) complete PI protection impact assessments; and (3) file the relevant standard
contracts and PI protection impact assessments to their provincial CAC branch within 10
business days of the taking effect of each standard contract. However, since the Security
Assessment Measures and the Standard Contract Measures were newly promulgated, there are
uncertainties as to their interpretations and applications. In the event if the regulatory
authorities deem certain of our activities as a cross-border data transfer, we will be subject to
the relevant requirements.
Risks Related to Our Corporate Structure
In certain jurisdictions, we are subject to restrictions on foreign ownership.
The laws and regulations in many markets place restrictions on foreign investment in, control
over, management of, ownership of and ability to obtain licenses for entities engaged in a
number of business activities.
PRC
Under the current PRC laws and regulations, foreign enterprises or individuals may not invest
in or operate domestic delivery services of letters. According to the Negative List, foreign
investment is prohibited in the establishment of any postal enterprise and in provision of any
domestic mail delivery services. Postal enterprises refer to the China Post Group and its wholly
owned enterprises or controlled enterprises that provide postal services and other services,
including but not limited to mail delivery, postal remittances, savings and issuance of stamps
and production and sale of philatelic products.
We are a Cayman Islands exempted company, and our PRC subsidiaries are considered
foreign-invested enterprises. Accordingly, none of our PRC subsidiaries is eligible to operate
domestic delivery services of letters in China. It is also practically and economically not
possible to separate the delivery of letters from the delivery of non-letter items in our
day-to-day services. To ensure strict compliance with the PRC laws and regulations, we
conduct such business activities through Shanghai Yishangshiye (the “PRC VIE”), our PRC
consolidated affiliated entity, and its subsidiaries. Chongqing Yunqing Supply Chain
Management Co., Ltd. (“PRC WFOE”), our wholly owned subsidiary in China, has entered
into a series of contractual arrangements with our PRC VIE and its shareholders, which allows
us to (i) exercise effective control over our PRC VIE, (ii) receive substantially all of the
economic benefits of our PRC VIE, and (iii) have an exclusive option to purchase all or part
of the equity interests and assets in our PRC VIE when and to the extent permitted by the PRC
laws and regulations. Because of these PRC Contractual Arrangements, we have control over
and are the primary beneficiary of our PRC VIE and hence consolidate its financial results as
our variable interest entity under IFRS. For a detailed discussion of these PRC Contractual
Arrangements, see “Contractual Arrangements.”
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RISK FACTORS
In the opinion of our PRC Legal Adviser, DaHui Lawyers, (i) the ownership structures of our
WFOE and our consolidated affiliated entities in China, currently and immediately after giving
effect to this [REDACTED] are not in violation of any explicit provisions of the PRC laws and
regulations currently in effect; and (ii) the PRC Contractual Arrangements between our PRC
WFOE, our PRC VIE and its shareholders governed by the PRC laws are valid, binding and
enforceable against each party thereto in accordance with their terms. However, we have been
further advised by our PRC counsel that there are substantial uncertainties regarding the
interpretation and application of current and future PRC laws, regulations and rules. Thus, the
PRC regulatory authorities may take a view contrary to the opinion of our PRC legal counsel.
It is uncertain whether any new PRC laws or regulations relating to variable interest entity
structure will be adopted or if adopted, what they would provide.
Indonesia
Indonesian laws and regulations impose certain restrictions on foreign investment. In

particular, under Law No. 38 of 2009 on Postal as partially amended by Law of the Republic
of Indonesia No. 6 of 2023 on the Stipulation of the Government Regulation in Lieu of the Law
No. 2 of 2022 on Job Creation into a Law (the “Job Creation Law”) (Law No. 38 of 2009 as
amended, the “Indonesian Postal Law”) and Law No. 25 of 2007 on Investment as partially
amended by the Job Creation Law (Law No. 25 of 2007 as amended, the “Indonesian
Investment Law”), a 49% foreign investment limit is imposed on companies engaged in
courier services. Furthermore, under the Indonesian Postal Law, a foreign postal company (as
defined in the Indonesian Postal Law) may subscribe for equity interest in an Indonesian Postal
Services Company, provided that such Indonesian Postal Services Company does not engage
in any operations outside provincial capitals in Indonesia. Because it is practically and
economically impossible to separate our operations among provincial capitals from operations
outside provincial capitals, we conduct our business through our Indonesian consolidated
affiliated entity, the Indonesian Holdco and its subsidiaries in Indonesia. We have entered into
a series of contractual arrangements with the Indonesian Holdco, the Indonesian Corporate
Registered Shareholders and the Indonesian Individual Registered Shareholders, which enable
us to (i) exercise effective control over our Indonesian consolidated affiliated entities; (ii)
receive substantially all of the economic benefits of the Indonesian consolidated affiliated
entities; and (iii) have an exclusive option to purchase all or part of the equity interests in the
Indonesian consolidated affiliated entities when and to the extent permitted by Indonesian
laws.
We have engaged Hutabarat Halim & Rekan as our legal counsel in Indonesia, and they are of
the opinion that the Indonesian Contractual Arrangements that we adopted in Indonesia are
legally binding and enforceable on the Indonesian Holdco, the Indonesian Corporate
Registered Shareholders and the Indonesian Individual Registered Shareholders, respectively,
and comply with all relevant laws and regulations of Indonesia.
If the authorities of PRC or Indonesia find that our Contractual Arrangements do not comply
with their prohibition or restrictions on foreign investment, or if the relevant government
authorities otherwise find that we or any of our subsidiaries are in violation of the relevant laws
or regulations or lack the necessary registrations, permits or licenses to operate our businesses
in such jurisdictions, they would have broad discretion in dealing with such violations or
failures, including, without limitation:
• revoking the business licenses and/or operating licenses of such entities;
• discontinuing or placing restrictions or onerous conditions on our operations through any

transactions between our subsidiaries and consolidated affiliated entities;
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RISK FACTORS
• imposing fines, confiscating the income from our subsidiaries or consolidated affiliated
entities, or imposing other requirements with which such entities may not be able to
comply;
• requiring us to restructure our ownership structure or operations, such as terminating the

Contractual Arrangements with our consolidated affiliated entities and deregistering the
equity pledges of consolidated affiliated entities, which in turn would affect our ability
to consolidate, derive economic interests from, or exert effective control over our
consolidated affiliated entities;
• restricting or prohibiting our use of the [REDACTED] of any of our financing outside
relevant jurisdiction to fund our business and operations; and/or
• taking other regulatory or enforcement actions that could be harmful to our business.
Any of these actions could cause significant disruption to our operations and severely damage
our reputation, which could in turn materially and adversely affect our business, financial
condition and results of operations. If any of these occurrences results in our inability to direct
the activities of our consolidated affiliated entities that most significantly impact its economic
performance, and/or our failure to receive the economic benefits from our consolidated
affiliated entities, we may not be able to consolidate the entity in our consolidated financial
statements in accordance with IFRS.
In addition, we have not purchased nor do we maintain any insurance policy to cover any of
the risks relating to our Contractual Arrangements. In the event that our Contractual
Arrangements are held or declared to be illegal, invalid or not legally binding, or if we fail to
enforce our rights under our Contractual Arrangements, or if we fail to seek remedies against
the relevant registered shareholders under our Contractual Arrangements, we may not be
adequately compensated for our losses, which may materially and adversely affect our
business, results of operations and financial condition.
Thailand
Thai laws and regulations impose certain prohibitions and restrictions on foreign participation
in certain businesses in Thailand. In particular, the Land Transport Act imposes foreign
ownership restrictions on companies that provide land transportation services. In addition,
under the Thai Foreign Business Act B.E. 2542 (1999) (the “FBA”), foreigners are restricted
from engaging in a number of businesses, which broadly include service businesses that J&T
entities in Thailand operate. In Thailand, direct foreign ownership in each Thai company
operating any foreign restricted business under the FBA cannot exceed 49% of the total
outstanding shares, and genuine Thai shareholder(s) should own at least more than 50% of the
total outstanding shares. Under the FBA, it is unlawful for a Thai national or entity to hold
shares in a Thai company on behalf of a foreigner to circumvent the foreign ownership
restrictions.
We primarily conduct our operations via Global Jet Express (Thailand) Co., Ltd. (“GJE
Thailand”). GJE Thailand is structured as a majority Thai-owned company with the use of
preference shares and ordinary shares with different voting rights and economic benefits at the
level of the ultimate Thai holding company, under which the Thai shareholder receives a fixed
rate of dividends, if distributed, based on its then paid-up capital contribution, and has less
voting rights than the foreign shareholder.
We have obtained confirmations from the Thai Ministry of Commerce (“MoC”), with respect
to the Foreign Business Act, that the shareholding structure adopted by GJE Thailand and its
shareholder would not cause GJE Thailand to be considered as a foreign company under the
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RISK FACTORS
FBA. According to the letters from the MoC, we believe that our current operations in Thailand
does not require approval under the FBA and the current shareholding structure of GJE
Thailand does not violate the FBA.
Based on our assessment and opinions of our Thai counsel Weerawong, Chinnavat & Partners
Ltd., we believe our shareholding structure in Thailand is in compliance with applicable local
laws and regulations. However, local or national authorities or regulatory agencies in Thailand
may conclude that our arrangements are in violation of local laws and regulations, and GJE
Thailand may be ordered to cease their businesses. Nonetheless, to date there are no cases in
which MoC or the Thai Police Department has taken any action at Thai courts against any
company adopting a similar shareholding structure and it would take approximately three to
four years before a final court judgment is rendered. Our Thai legal counsel has advised that
it would be possible to restructure our Thailand operations during the investigation or court
proceedings in order to minimize the risk of a court order being issued for the cessation of the
businesses of our Thai subsidiaries. Nonetheless, if we were not able to restructure our
shareholding in a timely manner, or at all, we may also be subject to decisions or orders that
require us to cease business operations or to dissolve. Any of the foregoing would materially
and adversely affect our business, financial condition and results of operations.
Malaysia
The Malaysian Communications and Multimedia Commission (“MCMC”) is the regulatory

body for courier services in Malaysia under the Postal Services Act 2012. The MCMC has
proposed to implement a new courier service licensing regime for Malaysia by December 2022.
Under the new framework, the MCMC proposed to introduce, among others, (i) a new licensing
structure, (ii) new licensing criteria and scope of services, (iii) a new annual license fee model,
(iv) new license conditions, and (v) mapping and migration processes. There are three new
classes of courier service license proposed, namely N-Courier (National Delivery Service),
U-Courier (Urban Delivery Service) and I-Courier (Pickup Drop Off Points (PUDO) and
Intermediary Service). In the public consultation paper issued by the MCMC, special
conditions on shareholding structure may be imposed for N-Courier license holders, being
foreign shareholding must not exceed 49%. The consultation paper provides that no
shareholding restriction is applicable for U-Courier or I-Courier licensee holders. As the
framework is still under consultation and has not been adopted, it remains unclear whether the
formal version adopted in the future will have any further material changes, and it is uncertain
how the measures will be enacted, interpreted or implemented and how they will affect us. If
the MCMC promulgates new laws and regulations that require additional approvals or licenses
or imposes additional conditions or restrictions on our daily operations and we are unable or
delay or fail to comply, the MCMC may have the authority, among other things, to levy fines,
revoke business licenses, and requires us to discontinue our relevant business or imposes
restrictions on the affected portion of our business. Any of these actions by the MCMC may
have a material and adverse effect on our results of operations.
If government authorities in any countries in which we may establish entities in the future
believe that our ownership of, or arrangements with respect to, relevant entities do not comply
with applicable laws and regulations, including requirements, prohibitions or restrictions on
foreign investment in our lines of business or with respect to necessary registrations, permits
or licenses to operate our businesses in such jurisdictions, they would have broad discretion in
dealing with such violations or failures, including imposing civil or criminal sanctions or
financial penalties against us, deeming our arrangements void by law and requiring us to
restructure our ownership structure or operations, revoking our business licenses and/or
operating licenses, prohibiting payments from and funding to our entities or ordering us to
cease our operations in the relevant jurisdictions.
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RISK FACTORS
Our Contractual Arrangements may not be as effective in providing operational control as

direct ownership.
Since PRC and Indonesian laws and regulations impose certain restrictions on foreign
investment, we operate our business in China and Indonesia through our consolidated affiliated
entity, in which we have no ownership interest and rely on a series of contractual arrangements
with our consolidated affiliated entities and their respective equity holders to control and
operate these businesses. Our revenue and cash flow from our business are attributed to our
consolidated affiliated entities. The Contractual Arrangements may not be as effective as direct
ownership in providing us with control over our consolidated affiliated entities. Direct
ownership would allow us, for example, to directly or indirectly exercise our rights as a
shareholder to effect changes in the boards of directors of our consolidated affiliated entities,
which, in turn, could effect changes, subject to any applicable fiduciary obligations at the
management level. However, under the Contractual Arrangements, we rely on the performance
by our consolidated affiliated entities and their shareholders of their obligations under the
contracts to exercise control over our consolidated affiliated entities. In the event we are unable
to enforce these Contractual Arrangements or we experience significant delays or other
obstacles in the process of enforcing these Contractual Arrangements, we may not be able to
exert effective control over our consolidated affiliated entities and may lose control over the
assets owned by our consolidated affiliated entities. As a result, we may be unable to
consolidate our consolidated affiliated entities in our consolidated financial statements, which
could materially and adversely affect our financial condition and results of operations.
Any failure by our consolidated affiliated entities in the PRC or Indonesia or their
shareholders to perform their obligations under our Contractual Arrangements with them
would have a material and adverse effect on our business.
If our consolidated affiliated entities or their shareholders fail to perform their respective
obligations under the Contractual Arrangements, we may have to incur substantial costs and
expend additional resources to enforce such arrangements. We may also have to rely on legal
remedies under laws of each jurisdiction where we operate, including seeking specific
performance or injunctive relief, and contractual remedies, which we cannot assure you will be
sufficient or effective under relevant laws. For example, if the shareholders of our consolidated
affiliated entities were to refuse to transfer their equity interests in or assets of relevant
consolidated affiliated entities to us or our designee when we exercise the purchase option
pursuant to these Contractual Arrangements, or if they were otherwise to act in bad faith toward
us, then we may have to take legal actions to compel them to perform their contractual
obligations.
All the agreements under our Contractual Arrangements are governed by local laws of the
jurisdictions where we operate, and such agreements provide for the resolution of disputes
through arbitration in relevant jurisdictions. Accordingly, these contracts would be interpreted
in accordance with local laws, and any disputes would be resolved in accordance with legal
procedures stipulated in each jurisdiction. The legal systems in many jurisdictions in which we
operate are not as developed as in some other jurisdictions. As a result, uncertainties in these
legal systems could limit our ability to enforce these Contractual Arrangements. See “– Risks
Related to Doing Business in Jurisdictions in Which We Operate – Uncertainties with respect
to the legal systems of certain markets where we operate could adversely affect us.”
Meanwhile, there are very few precedents and little formal guidance as to how Contractual
Arrangements in relation to consolidated affiliated entities structures should be interpreted or
enforced under relevant laws. In addition, all the agreements under our Contractual
Arrangements in the PRC are governed by PRC law and provide for the resolution of disputes
through arbitration in China. Under PRC law, rulings by arbitrators are final, parties generally
cannot appeal the arbitration results in courts, and if the losing parties fail to carry out the
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RISK FACTORS
arbitration awards within a prescribed time limit, the prevailing parties may only enforce the
arbitration awards in PRC courts through arbitration award recognition proceedings, which
would require additional expenses and delay. Meanwhile, the Indonesian Contractual
Arrangements are governed by the laws of the Republic of Indonesia, and provide the
resolution of disputes through arbitration in Hong Kong International Arbitration Centre.
Under the Indonesian laws, arbitration rulings are final and binding to the parties, and the
parties cannot appeal the arbitration rulings in the Indonesian courts. However, since the
agreed arbitration location is in Hong Kong (international arbitration ruling), in order for the
ruling to be executable and enforceable in Indonesia, such ruling must be recognized and
acknowledged by Central Jakarta District Court through ratification. The execution may then
be carried out by the district court of the relevant jurisdiction. In the event we are unable to
enforce these Contractual Arrangements, or if we suffer significant delay or other obstacles in
the process of enforcing these Contractual Arrangements, we may not be able to exert effective
control over our consolidated affiliated entities, and our ability to conduct our business may be
negatively affected.
The interests of the direct or indirect shareholders of our consolidated affiliated entities in
the PRC and Indonesia may have actual or potential conflicts of our interests.
The interests of the direct or indirect shareholders of our consolidated affiliated entities may
differ from interests of our company as what is in the interests of the shareholders of our
consolidated affiliated entities, including matters such as whether to distribute dividends, may
not be in the best interests of our company. The shareholders of our consolidated affiliated
entities may breach, or cause our consolidated affiliated entities to breach the existing
Contractual Arrangements with us, which would have a material and adverse effect on our
ability to effectively control our consolidated affiliated entities and receive economic benefits
from them. For example, these shareholders may be able to cause our agreements with our
consolidated affiliated entities to be performed in a manner adverse to us by, among other
things, failing to remit payments due under the Contractual Arrangements to us on a timely
basis. We cannot assure you that when conflicts of interest arise, any or all of these
shareholders will act in the best interests of our company or such conflicts will be resolved in
our favor. If we cannot resolve any conflict of interest or dispute between us and these
shareholders, we would have to rely on legal proceedings, which could result in disruption of
our business and subject us to substantial uncertainty as to the outcome of any such legal
proceedings.
There are restrictions for us to exercise our rights to transfer the shareholding in the
Indonesian Holdco under our Indonesian Contractual Arrangements.
Due to the foreign ownership restriction under the relevant laws and regulations in Indonesia
specifically in relation to the restriction in Article 11(1)d and 11(2) of the Indonesian Postal
Law, a Foreign Postal Operator is not allowed to acquire the shares of an existing Indonesian
Postal Services Company. A Foreign Postal Operator is allowed to own certain equity interest
in an Indonesian Postal Services Company only if a Foreign Postal Operator forms a new joint
venture company with an Indonesian Postal Services Company. In the event of bankruptcy of
the shareholders of the Indonesian Holdco, we have to cause all of the shares registered under
the name of the respective shareholder of the Indonesian Holdco to be transferred to a third
party designated by us and such third party must also be Indonesian citizen(s) or legal entity
fully owned by Indonesian citizen(s), and to procure such third party to take up and hold all
such shares subject to arrangements similar to that of the Contractual Arrangements. In the
event that we are unable to procure such a third party to replace the shareholders of the
Indonesian Holdco to take up the shares subject to arrangements similar to that of the
Indonesian Contractual Arrangements and in the event that we take up those shares and become
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RISK FACTORS
the registered shareholder of those shares, as advised by our Indonesian Legal Counsel, (i) we
may violate the Indonesia law which imposes the foreign ownership restriction and the
restriction of Indonesian Postal Law, (ii) business license of the Indonesian Holdco may be
revoked by the relevant government authority; (iii) the relevant government authority may not
process the application for registration of change in the company’s shareholders composition,
directors or commissioners or articles of association; and (iv) any transfer of shares of the
shareholders of the Indonesian Holdco that violates Indonesian laws and regulations may be
declared null and void by Indonesian courts in case a party applies to the relevant Indonesian
courts to nullify and void such transfers. In addition, such transfer of shares may also be
subject to substantial costs including professional fees which may be incurred in preparing the
relevant documentation and attending to the filing regarding such transfers.
We may lose the ability to use and enjoy assets held by our PRC or Indonesian consolidated
affiliated entities that are critical to the operation of our business if our consolidated
affiliated entities declare bankruptcy or become subject to a dissolution or liquidation
proceeding.
As part of our Contractual Arrangements, our consolidated affiliated entities in PRC and
Indonesia and their subsidiaries hold certain assets that are material to the operation of a
certain portion of our business, including sorting centers premises and sorting equipment. If
any of our consolidated affiliated entities goes bankrupt and all or part of their assets become
subject to liens or the rights of third-party creditors, we may not be able to continue some or
all of our business activities, which could materially and adversely affect our business,
financial condition and results of operations. Under the Contractual Arrangements, our
consolidated affiliated entities may not, in any manner, sell, transfer, mortgage or dispose of
their assets or legal or beneficial interests in the business without our prior consent. If our
consolidated affiliated entities in the PRC or Indonesia undergo a voluntary or involuntary
liquidation proceeding, the independent third-party creditors may claim rights to some or all
of these assets, thereby hindering our ability to operate our business, which could materially
and adversely affect our business, financial condition and results of operations.
Our current corporate structure and business operations in the PRC may be substantially
affected by the PRC Foreign Investment Law and Implementing Rules.
The structure based on the PRC Contractual Arrangements has been adopted by many
PRC-based companies, including us, to obtain necessary licenses and permits in the industries
that are currently subject to foreign investment restrictions in China. Pursuant to the PRC
Foreign Investment Law, “foreign investments” refer to investment activities conducted by
foreign investors (including foreign natural persons, foreign enterprises or other foreign
organizations) directly or indirectly in the PRC, which include any of the following
circumstances: (i) foreign investors setting up foreign-invested enterprises in the PRC solely
or jointly with other investors, (ii) foreign investors obtaining shares, equity interests, property
portions or other similar rights and interests of enterprises within the PRC, (iii) foreign
investors investing in new projects in the PRC solely or jointly with other investors, and (iv)
investment in other methods as specified in laws, administrative regulations, or as stipulated
by the State Council. The PRC Foreign Investment Law and the Implementing Rules do not
introduce the concept of “control” in determining whether a company would be considered as
a foreign-invested enterprise, nor do they explicitly provide whether the PRC Contractual
Arrangements structure would be deemed as a method of foreign investment. However, the
PRC Foreign Investment Law has a catch-all provision that includes the definition of “foreign
investments” made by foreign investors in China in other methods as specified in laws,
administrative regulations, or as stipulated by the State Council, and as the PRC Foreign
Investment Law and the Implementing Rules are newly adopted and relevant government
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RISK FACTORS
authorities may promulgate more laws, regulations or rules on the interpretation and
implementation of the PRC Foreign Investment Law, the possibility cannot be ruled out that the
concept of “control” may be embodied in, or the PRC Contractual Arrangements adopted by
us may be deemed as a method of foreign investment by, any of such future laws, regulations
and rules. If any of our PRC consolidated affiliated entities was deemed as a foreign-invested
enterprise under any of such future laws, regulations and rules, and any of the businesses that
we operate would be in any “negative list” for foreign investment and therefore be subject to
any foreign investment restrictions or prohibitions, further actions required to be taken by us
under such laws, regulations and rules may materially and adversely affect our business,
financial condition and results of operations. Furthermore, if future laws, administrative
regulations or provisions mandate further actions to be taken by companies with respect to
existing PRC Contractual Arrangements, we may face substantial uncertainties as to whether
we can complete such actions in a timely manner, or at all. Failure to take timely and
appropriate measures to cope with any of these or similar regulatory compliance challenges
could materially and adversely affect our current corporate structure, business, financial
condition and results of operations.
The Contractual Arrangements we have entered into with our consolidated affiliated entities
may be subject to scrutiny by the tax authorities. A finding that we owe additional taxes could
negatively affect our financial condition and the value of your investment.
The tax regimes in China and Indonesia are rapidly evolving, and there is significant
uncertainty for taxpayers in China and Indonesia as relevant tax laws may be interpreted in
significantly different ways. The PRC and Indonesian tax authorities may assert that we or our
subsidiaries or consolidated affiliated entities or their equity holders owe and/or are required
to pay additional taxes on previous or future revenue or income. In particular, under applicable
laws, rules and regulations, arrangements and transactions among related parties, such as the
Contractual Arrangements with our consolidated affiliated entities, may be subject to audit or
challenge by the tax authorities. If the tax authorities determine that any Contractual
Arrangements were not entered into on an arm’s length basis and therefore constitute a
favorable transfer pricing, tax liabilities of the relevant subsidiaries and/or consolidated
affiliated entities and/or equity holders of the consolidated affiliated entities could be
increased, which could increase our overall tax liabilities. In addition, the PRC and Indonesian
tax authorities may impose late payment fees or other penalties. Our profit may be materially
reduced if our tax liabilities increase.
Certain terms of the PRC Contractual Arrangements may not be enforceable under PRC
laws.
The PRC Contractual Arrangements provide for dispute resolution by way of arbitration at the
Shanghai Arbitration Commission, in accordance with the then effective arbitration rules. The
arbitration shall be conducted in Shanghai.
The PRC Contractual Arrangements contain provisions to the effect that the arbitral body may
award remedies over the equity interests, assets or property interest of our PRC consolidated
affiliated entities, injunctive relief or order the winding up of the PRC consolidated affiliated
entities. These agreements also contain provisions to the effect that courts of competent
jurisdictions are empowered to grant interim remedies in support of the arbitration pending the
formation of an arbitral tribunal. However, under PRC laws, these terms may not be
enforceable. Under PRC laws, an arbitral body does not have the power to grant injunctive
relief or to issue a provisional or final liquidation order for the purpose of protecting assets of
or equity interests in the PRC consolidated affiliated entities in case of disputes. In addition,
interim remedies or enforcement order granted by overseas courts such as Hong Kong and the
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RISK FACTORS
Cayman Islands may not be recognizable or enforceable in the PRC. PRC laws allow the
arbitral body to grant an award of transfer of assets of or equity interests in the PRC
consolidated affiliated entities in favor of an aggrieved party. In the event of non-compliance
with such award, enforcement measures may be sought from the court. However, the court may
or may not support the award of an arbitral body when deciding whether to take enforcement
measures.
Under PRC laws, courts of judicial authorities in the PRC generally would not grant injunctive
relief or the winding-up order against our PRC consolidated affiliated entities as interim
remedies for the purpose of protecting assets or equity interests in favor of any aggrieved party.
In case the PRC Contractual Arrangements provide that courts in competent jurisdictions may
grant and/or enforce interim remedies or in support of arbitration, such interim remedies (even
if granted by courts in competent jurisdictions in favor of an aggrieved party) may still not be
recognized, or enforced by PRC courts. As a result, in the event that our PRC consolidated
affiliated entities or the shareholders of our PRC VIE breach any of the PRC Contractual
Arrangements, we may not be able to obtain sufficient remedies in a timely manner, and our
ability to exert effective control over our PRC consolidated affiliated entities and conduct our
business could be materially and adversely affected.
Risks Related to Doing Business in Jurisdictions in Which We Operate
Changes in the economic, political or social conditions or government policies of the

geographic markets in which we operate could have a material adverse effect on our business
and operations.
We operate a significant portion of our business in a number of geographic markets across Asia
and other emerging markets. Accordingly, our business, financial condition and results of
operations may be influenced to a significant degree by political, economic and social
conditions in these markets. The economies in emerging markets generally differ from
developed markets in many respects, including the level of government involvement, level of
development, growth rate, control of foreign exchange, government policy on public order and
allocation of resources. In some of these markets, governments continue to play a significant
role in regulating industry development by imposing industrial policies. Some local
governments also exercise significant control over the economic growth and public order in
their respective jurisdictions through allocating resources, controlling payment of foreign
currency-denominated obligations, setting monetary policies, and providing preferential
treatment to particular industries or companies. Governmental actions to control inflation and
other policies and regulations have often involved, among other measures, price controls,
currency devaluations, capital controls and limits on imports.
Growth of the economy in each of our geographic markets has been uneven, both
geographically and among various sectors of the economy. An economic downturn, whether
actual or perceived, further decrease in economic growth rates or an otherwise uncertain
economic outlook in our geographic markets or any other market in which we may operate
could have a material adverse effect on our business, financial condition and results of
operations. Some of these markets have experienced, and may in the future experience,
political instability, including strikes, demonstrations, protests, marches, guerilla activity or
other types of civil disorder. These instabilities and any adverse changes in the political
environment could increase our costs, increase our exposure to legal and business risks, disrupt
our office operations or affect our ability to expand our user base.
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RISK FACTORS
Uncertainties with respect to the legal systems of certain markets where we operate could
adversely affect us.
The legal systems markets where we operate vary significantly from jurisdiction to
jurisdiction. Some jurisdictions have a civil law system based on written statutes and others are
based on common law. Unlike the common law system, prior court decisions under the civil
law system may be cited for reference but have limited precedential value.
Many of our markets have not developed a fully integrated legal system. Laws and regulations
that are recently enacted may not sufficiently cover all aspects of economic activities in such
markets. In particular, the interpretation and enforcement of these laws and regulations involve
uncertainties, and the application of some of these laws and regulations to our businesses is not
settled. Since local administrative and court authorities have significant discretion in
interpreting and implementing statutory provisions and contractual terms, it may be difficult to
evaluate the outcome of administrative and court proceedings and the level of legal protection
we have in many of the localities in which we operate. Local courts may have broad discretion
to reject enforcement of foreign awards or arbitration awards. These uncertainties may affect
our judgment on the relevance of legal requirements and our ability to enforce our contractual
rights or claims. In addition, the regulatory uncertainties may be exploited through unmerited
or frivolous legal actions, claims concerning the conduct of third parties, or threats in attempt
to extract payments or benefits from us.
Furthermore, many of the legal systems in our markets are based in part on government policies
and internal rules, some of which are not published on a timely basis or at all and may have
retroactive effect. There are other circumstances where key regulatory definitions are unclear,
imprecise or missing, or where interpretations that are adopted by regulators are inconsistent
with interpretations adopted by a court in analogous cases. As a result, we may not be aware
of our violation of certain policies and rules until sometime after the violation. In addition, any
administrative and court proceedings in our markets may be protracted, resulting in substantial
costs and diversion of resources and management attention.
It is possible that a number of laws and regulations may be adopted or construed to apply to
us in our geographic markets and elsewhere that could restrict our industries. Scrutiny and
regulation of the industries in which we operate may further increase, and we may be required
to devote additional legal and other resources to addressing this regulation. Changes in current
laws or regulations or the imposition of new laws and regulations regarding our industries in
our geographic markets may slow the growth of our industries and adversely affect our
financial condition and results of operations.
It may be difficult for the Hong Kong regulators to obtain information or call for regulatory
assistance in the Philippines and Cambodia where circumstances necessitate in the course
of overseeing us as a [REDACTED] company by the regulations in Hong Kong.
Our Directors and us, which will be regulated by the SFO and other applicable laws and
regulations in Hong Kong upon the [REDACTED], shall be required to provide the SFC with
all information relating to our business in the Philippines and Cambodia that is necessary for
its investigation of our affairs as may be required under Hong Kong laws or regulations.
However, as the Philippines and Cambodia have not signed any regulatory cooperation
agreement or memorandum of understanding with the SFC or the Hong Kong Stock Exchange,
nor is it a member of the International Organization of Securities Commissions (the “IOSCO”)
or a signatory to the IOSCO Multi-lateral Memorandum of Understanding (the “IOSCO
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RISK FACTORS
MMOU”), it may be difficult for the Hong Kong regulators to obtain information or call for
regulatory assistance in the Philippines and Cambodia where circumstances necessitate in the
course of overseeing us as a [REDACTED] company by the regulations in Hong Kong.
As we continue to grow our operations in our core markets and expand our presence into
further global jurisdictions, we do not expect the relevant contributions in revenue or assets
attributable to the Philippines and Cambodia to significantly increase in the future.
Nevertheless, we will continuously monitor our local business operations and business
expansion rate in the Philippines and Cambodia on an ongoing basis. Our management will also
report periodic information of the revenue generated by our operating entities in the
Philippines and Cambodia to our Board of Directors. In the event the contributions of our
business in the Philippines and Cambodia grow in significance in relation to our Group’s
overall operations, we will take steps to allow for the Hong Kong Stock Exchange and the SFC
to have access to our Philippine and Cambodian operating entities’ books and records and fully
cooperate with all regulatory requests in order to facilitate the Hong Kong Stock Exchange and
the SFC’s access to information of these operating entities based abroad. Our Directors believe
these measures are adequate and effective in ensuring full compliance with Rule 8.02A of the
Listing Rules.
Certain geographic markets where we operate have been subject to periods of political and
social instability, and any renewed or continuous political violence or instability could
materially and adversely affect our business, financial condition, results of operations and
prospect.
Our business, financial condition, results of operations and prospects are significantly
impacted by the political situation in countries where we operate, some of which have
historically been subject to periods of instability, including political violence, contested
elections and military coups. For example, in October and November 2020, Thailand has
experienced mass political movements and protests against the government across certain
provinces, and especially in the central business districts of Bangkok.
In recent years, there have been political protests, other protests, terrorist attacks, domestically
and internationally, and other types of instabilities which have particularly affected countries
such as Thailand and the Philippines. In May 2017, the city of Marawi in the Philippines was
assaulted by the Maute Group, terrorists. In October 2017, the city was declared liberated from
the terrorists but the state of national emergency on account of lawless violence declared in
2016 in the Mindanao region (where the city of Marawi is located) has not been lifted.
Similarly, Malaysia has also witnessed a period of political upheavals since 2018 to date.
Continued violence could lead to widespread unrest or a major terrorist incident similar to
those in other parts of Southeast Asia. An increase in the frequency, severity or geographic
reach of violent crimes, political turmoil and similar events could have a material adverse
effect on investment and confidence in, and the performance of the economy of those countries
where we operate. Any such destabilization could cause interruption to our business and
materially and adversely affect our financial conditions, results of operations and prospects.
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RISK FACTORS
You may experience difficulties in effecting service of legal process, enforcing Shareholders’
rights and foreign judgments or bringing actions in China against us or our management
named in the document based on foreign laws.
We are an exempted company incorporated under the laws of the Cayman Islands. The rights
of the Shareholders and the fiduciary duties of our Directors under the Cayman Islands laws
may differ in some respects from what they would be under statutes or judicial precedents in
Hong Kong or other jurisdictions where investors may be located. In addition, some of our
Directors and executive officers reside in the PRC. As a result, it may not be possible to effect
service of process outside of the PRC upon us, our Directors and executive officers. Even if
you obtain a judgment against us, our Directors or executive officers in a court outside of the
PRC, you may not be able to enforce such judgment against us or them in the PRC. The PRC
does not have treaties providing for the reciprocal recognition and enforcement of judgments
of courts in the U.S., the U.K., Japan or most other western countries. Therefore, recognition
and enforcement in the PRC of judgments of a court in any of these jurisdictions may be
difficult or even impossible. In addition, you may not be able to bring original actions in the
PRC based on the U.S. or other foreign laws against us, our Directors or executive officers. As
a result, shareholder claims that are common in the U.S., including class actions based on
securities law and fraud claims, are difficult or impossible to pursue as a matter of law and
practicality in the PRC.
On July 14, 2006, Hong Kong and China entered into the Arrangement on Reciprocal
Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of
the Mainland and of the Hong Kong Special Administrative Region Pursuant to Choice of
Court Agreements Between Parties Concerned (《關於內地與香港特別行政區法院相互認可和
執行當事人協議管轄的民商事案件判決的安排》), or the 2006 Arrangement, and promulgated
on July 3, 2008, pursuant to which a party with a final court judgment rendered by a Hong
Kong court requiring payment of money in a civil and commercial case pursuant to a choice
of court agreement in writing may apply for recognition and enforcement of the judgment in
China. Similarly, a party with a final judgment rendered by a PRC court requiring payment of
money in a civil and commercial case pursuant to a choice of court agreement in writing may
apply for recognition and enforcement of the judgment in Hong Kong. A choice of court
agreement in writing is defined as any agreement in writing entered into between parties after
the effective date of the 2006 Arrangement in which a Hong Kong court or a PRC court is
expressly designated as the court having sole jurisdiction for the dispute. Therefore, it is not
possible to enforce a judgment rendered by a Hong Kong court in China if the parties in dispute
have not agreed to enter into a choice of court agreement in writing. Although the 2006
Arrangement became effective on August 1, 2008, the outcome and effectiveness of any action
brought under the 2006 Arrangement may still be uncertain.
On January 18, 2019, the Supreme People’s Court of the PRC and the government of the Hong
Kong Special Administrative Region entered into the Arrangement on Reciprocal Recognition
and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland
and of the Hong Kong Special Administrative Region (《關於內地與香港特別行政區法院相互
認可和執行民商事案件判決的安排》), or the 2019 Arrangement, which seeks to establish a
bilateral legal mechanism that provides clarity and certainty for the recognition and
enforcement of judgments in a wider range of civil and commercial matters between Hong
Kong and mainland China, based on criteria other than a written choice of court agreement. The
2006 Arrangement will be superseded upon the effectiveness of the 2019 Arrangement.
Although the 2019 Arrangement has been signed, it remains unclear as to its effective date and
uncertain as to the outcome and effectiveness of any action brought under the 2019
Arrangement.
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RISK FACTORS
If we are classified as a PRC resident enterprise for PRC income tax purposes, such
classification could result in unfavorable tax consequences to us and our non-PRC
Shareholders.
Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise
established outside of the PRC with “de facto management body” within China is considered
a “resident enterprise” and will be subject to the enterprise income tax on its global income at
the rate of 25%. The implementation rules define the term “de facto management body” as the
body that exercises full and substantial control and overall management over the business,
productions, personnel, accounts and properties of an enterprise. In 2009, the State
Administration of Taxation, or SAT, issued the Circular of the State Administration of Taxation
on Issues Relating to Identification of PRC-Controlled Overseas Registered Enterprises as
Resident Enterprises in Accordance with the De Facto Standards of Organizational
Management, which provides certain specific criteria for determining whether the “de facto
management body” of a PRC-controlled enterprise that is incorporated offshore is located in
China. Although this circular only applies to offshore enterprises controlled by PRC enterprises
or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria
set forth in the circular may reflect SAT’s general position on how the “de facto management
body” text should be applied in determining the tax resident status of all offshore enterprises.
According to the above circular, an offshore incorporated enterprise controlled by a PRC
enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having
its “de facto management body” in China and will be subject to PRC enterprise income tax on
its global income only if all of the following conditions are met: (i) the primary location of the
day-to-day operational management is in China; (ii) decisions relating to the enterprise’s
financial and human resource matters are made or are subject to approval by organizations or
personnel in China; (iii) the enterprise’s primary assets, accounting books and records,
company seals, and board and shareholder resolutions, are located or maintained in China; and
(iv) at least 50% of voting board members or senior executives habitually reside in China.
We believe none of our entities outside of China is a PRC resident enterprise for PRC tax
purposes. However, the tax resident status of an enterprise is subject to determination by the
PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de
facto management body.” If the PRC tax authorities determine that we are a PRC resident
enterprise for enterprise income tax purposes, we could be subject to PRC tax at a rate of 25%
on our worldwide income, which could materially reduce our net income, and we may be
required to withhold a 10% withholding tax (unless a preferential tax treatment is available
under an applicable tax treaty) from dividends we pay to our Shareholders that are non-resident
enterprises, including the holders of our Shares. In addition, non-resident enterprise
Shareholders may be subject to PRC tax at a rate of 10% (unless a preferential tax treatment
is available under an applicable tax treaty) on gains realized on the sale or other disposition of
our Shares, if such income is treated as sourced from within China. Furthermore, if we are
deemed a PRC resident enterprise, dividends payable to our non-PRC individual Shareholders
and any gain realized on the transfer of our Shares by such Shareholders may be subject to PRC
tax at a rate of 20% unless a reduced rate is available under an applicable tax treaty. However,
it is unclear whether our non-PRC Shareholders would be able to claim the benefits of any tax
treaties between their country of tax residence and the PRC in the event that we are treated as
a PRC resident enterprise. Any such tax may reduce the returns on your investment in our
Shares.
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RISK FACTORS
We face uncertainties with respect to indirect transfer of equity interests in PRC resident
enterprises by their non-PRC holding companies.
We face uncertainties regarding the reporting on and consequences of previous private equity
financing transactions involving the transfer and exchange of shares in our company by
non-resident investors. In February 2015, the SAT issued the Bulletin on Issues of Enterprise
Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises. Pursuant to this
new regulation, an “indirect transfer” of PRC assets, including a transfer of equity interests in
an unlisted non-PRC holding company of a PRC resident enterprise, by non-PRC resident
enterprises may be re-characterized and treated as a direct transfer of the underlying PRC
assets, if such arrangement does not have a reasonable commercial purpose and was established
for the purpose of avoiding payment of PRC enterprise income tax. As a result, gains derived
from such indirect transfer may be subject to PRC enterprise income tax, and the transferee or
other person who is obligated to pay for the transfer is obligated to withhold the applicable
taxes, currently at a rate of 10% (unless a preferential tax treatment is available under an
applicable tax treaty) for the transfer of equity interests in a PRC resident enterprise. In
October 2017, the SAT issued the Announcement of the State Administration of Taxation on
Issues Concerning the Withholding of Non-resident Enterprise Income Tax at Source, which
further clarifies the practice and procedure of the withholding of nonresident enterprise income
tax.
We face uncertainties on the reporting and consequences of future private equity financing
transactions, share exchanges or other transactions involving the transfer of shares in our
company by investors that are non-PRC resident enterprises. The PRC tax authorities may
pursue such non-resident enterprises with respect to a filing or the transferees with respect to
withholding obligation, and request our PRC subsidiaries to assist in the filing. As a result, we
and non-resident enterprises in such transactions may be subject to filing obligations or be
taxed under the above mentioned two bulletins, and may be required to expend valuable
resources to comply with them or to establish that we and our non-resident enterprises should
not be taxed under these regulations.
If our preferential tax treatments and government subsidies are revoked or become
unavailable or if the calculation of our tax liability is successfully challenged by the PRC tax
authorities, we may be required to pay tax, interest and penalties in excess of our tax
provisions.
The Chinese government has provided tax incentives to our PRC subsidiaries in China,
including reduced enterprise income tax rates. We cannot assure you that we will continue to
be eligible to receive such local government tax refunds or subsidies or that amount of such
refunds or subsidies will not be reduced in the future. Our ability to continue enjoying local
government tax refunds or subsidies is subject to changes in national or local policies that
affect the validity of our agreements, and may be affected by the termination of, or amendments
to, such agreements for reasons beyond our control. We cannot assure you that we will be able
to enter into new agreements with local government authorities that provide local government
tax refunds or subsidies to us on similar terms. Any increase in the enterprise income tax rate
applicable to our PRC subsidiaries in China, or any discontinuation, retroactive or reduction or
refund of any of the preferential tax treatments, or any significant decrease in or termination
of such local government tax refunds or subsidies currently enjoyed by our PRC subsidiaries
in China, could adversely affect our financial condition.
– 72 –
RISK FACTORS
Laws and regulations in countries where we operate may make it more difficult for us to
pursue growth through acquisitions.
The Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors

(《關於外國投資者併購境內企業的規定》) jointly issued by the MOFCOM and five other
PRC regulatory authorities on August 8, 2006, and amended on June 22, 2009 (the “M&A
Rules”), the Provisions of the Ministry of Commerce on the Implementation of the Safety
Review System for Merger and Acquisition of Domestic Enterprises by Foreign Investors (《商
務部實施外國投資者併購境內企業安全審查制度的規定》) promulgated by the Ministry of
Commerce on August 25, 2011, the Measures for the Examination of the Security of Foreign
Investment (《外商投資安全審查辦法》) promulgated by the NDRC and the Ministry of
Commerce on December 19, 2020, and some other regulations and rules concerning mergers
and acquisitions established complex procedures and requirements for some acquisitions of
Chinese companies by foreign investors. These include requirements in some instances that the
Ministry of Commerce, be notified in advance of any change-of-control transaction in which
a foreign investor takes control of a PRC domestic enterprise. PRC laws and regulations also
require certain merger and acquisition transactions to be subject to merger control review or
security review. Mergers and acquisitions by foreign investors that raise “national defense and
security” concerns and mergers and acquisitions through which foreign investors may acquire
de facto control over domestic enterprises that raise “national security” concerns are subject to
strict review by the Ministry of Commerce, and the rules prohibit any activities attempting to
bypass a security review, including by structuring the transaction through a proxy or
contractual control arrangement.
Moreover, the Anti-Monopoly Law promulgated by the Standing Committee of the National
People’s Congress of China and effective in 2008, as most recently amended on June 24, 2022
and effective from August 1, 2022, requires that transactions which are deemed concentrations
and involve parties with specified turnover thresholds must be cleared by the relevant
anti-monopoly authority before they can be completed. It also requires business operators not
to abuse data, algorithms, technology, capital advantages and platform rules to exclude or limit
competition.
In Vietnam, when a foreign investor or a foreign investor equivalent entity acquires shares or
equity interest, or makes capital contribution in a Vietnamese company, such investor may be
required to obtain an approval from the competent investment authority under certain
circumstances. See “Regulatory Overview – Vietnam Investment Law – M&A Approval” in
Appendix III to this document. Similarly, in the Philippines, acquisitions of licensed entities,
including domestic and international freight forwarders and courier service providers, require
prior approvals from relevant regulatory authorities before such entity can implement the said
transaction. Republic Act No. 10667, the Philippine Competition Act (the “PCA”), prohibits
practices that restrict market competition. It also requires parties to notify and obtain clearance
from the Philippine Competition Commission (“PCC”) for mergers and acquisitions that meet
the notifiability thresholds. PCC also has the discretion to review any transaction that it
believes is likely to substantially restrict competition in the market.
Under the Republic Act No. 11659 or an Act Amending Commonwealth Act No. 146, otherwise
known as the Public Service Act (“PSA Amendment”) and its implementing rules, the
President of the Philippines also has the power to suspend or prohibit any proposed merger or
acquisition transaction, or any investment in a public service that effectively results in the grant
of control, whether direct or indirect, to a foreigner or a foreign corporation or a foreign
government where the proposed merger or acquisition transaction, or investment in a public
service has national security implications.
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RISK FACTORS
We may pursue potential strategic acquisitions that are complementary to our business and
operations. Complying with the requirements of the above-mentioned regulations and other
relevant rules to complete such transactions could be time-consuming, and any required
approval processes may delay or inhibit our ability to complete such transactions, which could
affect our ability to expand our business or maintain our market share.
We cannot predict whether we will be able to complete necessary filing with the CSRC in
connection with this [REDACTED] and our future capital raising activities, including
pursuant to the recently promulgated Overseas Listing Trial Measures.
On February 17, 2023, as approved by the State Council, the CSRC released the Trial
Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies
(《境內企業境外發行證券和上市管理試行辦法》) and five supporting guidelines, or the
Filing Rules. The Filing Rules, effective on March 31, 2023, require PRC domestic enterprises
that directly or indirectly offer or list their securities in an overseas market to file with the
CSRC within three business days after submitting their listing application documents to the
relevant regulator in the place of intended listing. Failure to complete such filing may subject
a PRC domestic enterprise to an order of rectification, a warning or a fine between RMB1
million and RMB10 million, and its controlling shareholders, actual controllers, the person
directly in charge and other directly liable persons may also be subject to administrative
penalties, such as warnings and fines. Pursuant to these regulations, a domestic enterprise
applying for listing abroad shall, among others, complete record filing procedures and report
relevant information to the securities regulatory authority as required. Furthermore, with
respect to the issuers with contractual arrangements, at a press conference held for these new
regulations, officials from the CSRC clarified that the CSRC will seek opinions from relevant
government authorities on the contractual arrangements in PRC and allow those issuers with
contractual arrangements as well as being in compliance with relevant requirements to file its
overseas offering and listing with the CSRC. For details, see “Regulatory Overview –
Regulations Relating to Overseas Listing and M&A” in Appendix III to this document.
As the Filing Rules has just recently come into effect, there remains substantial uncertainties
as to its interpretation and implementation, and the PRC government authority may have wide
discretion in the interpretation and enforcement of these laws. We cannot assure you that we
could obtain such approval, or complete such filing, from the CSRC in a timely manner or at
all. We cannot assure that any new rules or regulations promulgated in the future will not
impose additional requirements on us. If it is determined in the future that approval from or
filing with the CSRC or other regulatory authorities or other procedures are required, we may
fail to obtain such approval, perform such filing procedures or meet such other requirements
in a timely manner or at all. Any failure may restrict our ability to complete this [REDACTED]
or any future capital raising activities, which would have a material adverse effect on our
business and financial positions.
Any failure to comply with PRC regulations regarding the registration requirements for
employee share incentive plans may subject our share incentive plan participants or us to
fines and other legal or administrative sanctions.
In February 2012, SAFE promulgated the Notices on Issues Concerning the Foreign Exchange
Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas
Publicly Listed Company. Pursuant to these rules, PRC citizens and non-PRC citizens who
reside in China for a continuous period of not less than one year and participate in any stock
incentive plan of an overseas publicly listed company, subject to a few exceptions, are required
to register with SAFE through a domestic qualified agent, which could be the PRC subsidiaries
of such overseas-listed company, and complete certain other procedures. In addition, an
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RISK FACTORS
overseas-entrusted institution must be retained to handle matters in connection with the

exercise or sale of stock options and the purchase or sale of shares and interests. We and our
executive officers and other employees who are PRC citizens or who reside in China for a
continuous period of not less than one year and who have been granted options will be subject
to these regulations when our company becomes an [REDACTED] company upon the
completion of this [REDACTED]. Failure to complete SAFE registrations may subject them
to fines of up to RMB300,000 for entities and up to RMB50,000 for individuals, and legal
sanctions and may also limit our ability to contribute additional capital into our PRC
subsidiaries and limit our PRC subsidiaries’ ability to distribute dividends to us. We also face
regulatory uncertainties that could restrict our ability to adopt additional incentive plans for our
directors, executive officers and employees under PRC law.
In addition, SAT has issued certain circulars concerning employee share options and restricted
shares. Under these circulars, our employees working in China who exercise share options or
are granted restricted shares will be subject to PRC individual income tax. Our PRC
subsidiaries have obligations to file documents related to employee share options or restricted
shares with relevant tax authorities and to withhold individual income taxes of those employees
who exercise their share options. If our employees fail to pay or we fail to withhold their
income taxes according to relevant laws and regulations, we may face sanctions imposed by the
tax authorities or other PRC government authorities.
Our failure to fully comply with labor-related laws may expose us to potential penalties.
Companies operating in China are required to participate in various employee benefit plans,
including certain social insurance, housing funds, unemployment insurance, health insurance
plans and other welfare oriented payment obligations, and contribute to the plans in amounts
equal to certain percentages of salaries, including bonuses and allowances, of our employees
up a maximum amount specified by the local government from time to time at locations where
we operate our businesses. The requirement of employee benefit plans has not been
implemented consistently by the local governments in China given the different levels of
economic development in different locations. During the Track Record Period, there were
shortfalls in our contributions to social insurance and housing funds for our China-based
employees, and we have made provisions in connection with such shortfalls. As of the Latest
Practicable Date, we had not received any notice for payment of penalties of social insurance
premium and housing provident funds from the competent authorities. As advised by our PRC
Legal Adviser, the likelihood of us receiving any notice of penalties from the competent
authorities is relatively low, provided that we pay the outstanding contribution, and late fee (if
any), for social insurance and house provident funds in full amount within the prescribed
period after receiving notices to rectify such non-compliance from the competent authorities.
However, there is no assurance that the competent government authorities will not require us
to settle the outstanding amount within the specified time limit or impose late payment
penalties on us, or any of our employees would not make complaints or demand for payment
for any outstanding contribution. Pursuant to the Urgent Notice on Enforcing the
Requirement of the General Meeting of the State Council and Stabilizing the Levy of Social
Insurance Payment (《關於貫徹落實國務院常務會議精神切實做好穩定社保費徵收工作的緊
急通知》) promulgated on September 21, 2018 by the Ministry of Human Resources and Social
Security, administrative enforcement authorities are prohibited from organizing and conducting
aggregated collection of enterprises’ historical social insurance arears. As advised by our PRC
Legal Adviser, (i) the likelihood of us being conducted aggregated collection of our historical
social insurance arrears is remote; and (ii) if we receive notices from the competent authorities
requiring us to rectify such non-compliance, and we pay such outstanding amounts and late
fees (if any) within the required period, the likelihood of us being required to pay penalties is
remote. In addition, we also engage outsourcing firms to provide a large number of personnel
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RISK FACTORS
to work at our network facilities. The outsourcing activities and agreements are subject to local
laws and regulations. For example, in the Philippines, outsourcing agreements are highly
regulated and are subject to strict requirements under Philippine labor laws and regulations.
Even if we may have contractual protection against claims from outsourced personnel, in the
event that the outsourcing firms violate any relevant labor laws and regulations or their
employment agreements with the outsourced personnel, such personnel may file a claim
against us as they provide their services at our network facilities. As a result, we may incur
legal liability, and our reputation, brand image as well as our business, financial condition and
results of operations could be materially and adversely affected.
PRC regulations relating to offshore investment activities by PRC residents may limit our
PRC subsidiaries’ ability to change their registered capital or distribute profits to us or
otherwise expose us or our PRC resident beneficial owners to liability and penalties under
PRC laws.
On July 4, 2014, SAFE promulgated the Notice on Issues Relating to Foreign Exchange
Administration over the Overseas Investment and Financing and Round-trip Investment by
Domestic Residents via Special Purpose Vehicles, or the SAFE Circular 37. The SAFE Circular
37 requires PRC residents (including PRC individuals and PRC corporate entities as well as
foreign individuals that are deemed as PRC residents for foreign exchange administration
purposes) to register with SAFE or its local branches in connection with their direct or indirect
offshore investment activities. The SAFE Circular 37 further requires amendment to the SAFE
registrations in the event of any changes with respect to the basic information of the offshore
special purpose vehicle, such as change of a PRC individual shareholder, name and operation
term, or any significant changes with respect to the offshore special purpose vehicle, such as
increase or decrease of capital contribution, share transfer or exchange, or mergers or divisions.
The SAFE Circular 37 is applicable to our Shareholders or beneficial owners who are PRC
residents and may be applicable to any offshore acquisitions that we make in the future.
According to the Notice of the SAFE on Further Simplifying and Improving the Foreign
Exchange Administration Policies for Direct Investment, promulgated by the SAFE on
February 13, 2015 and effective on June 1, 2015, local banks will examine and handle foreign
exchange registration for overseas direct investment, including the initial foreign exchange
registration and amendment registration, under the SAFE Circular 37 from June 1, 2015.
If our Shareholders or beneficial owners who are PRC residents or entities do not complete
their registration with the local SAFE branches or qualified local banks, our PRC subsidiaries
may be prohibited from distributing to us its profits and proceeds from any reduction in capital,
share transfer or liquidation, and we may be restricted in our ability to contribute additional
capital to our PRC subsidiaries. Moreover, failure to comply with the SAFE registration
described above could result in liability under PRC laws for evasion of applicable foreign
exchange restrictions.
We may not be informed of the identities of all the PRC residents or entities holding direct or
indirect interest in our Company, nor can we compel our Shareholders or beneficial owners to
comply with SAFE registration requirements. We cannot assure you that all shareholders or
beneficial owners of ours who are PRC residents or entities have complied with, and will in
the future make, obtain or update any applicable registrations or approvals required by, SAFE
regulations.
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RISK FACTORS
The failure or inability of such Shareholders or beneficial owners to comply with SAFE
regulations, or failure by us to amend the foreign exchange registrations of our PRC
subsidiaries, could subject us or the non-compliant Shareholders or beneficial owners to fines
or legal sanctions, restrict our overseas or cross-border investment activities, limit our PRC
subsidiaries’ ability to make distributions or pay dividends to us or affect our ownership
structure. As a result, our operations and our ability to distribute any future profits to you could
be materially and adversely affected.
We may be materially adversely affected if our Shareholders and beneficial owners who are
PRC entities fail to comply with the relevant PRC overseas investment regulations.
In December 2017, the NDRC promulgated the Administrative Measures on Overseas

Investments, according to which non-sensitive overseas investment projects are subject to
record-filing requirements with the local branch of the NDRC. In September 2014, the Ministry
of Commerce promulgated the Administrative Measures on Overseas Investments, according to
which overseas investments of PRC enterprises that involve non-sensitive countries and
regions and non-sensitive industries are subject to record-filing requirements with a local
branch of the Ministry of Commerce. According to the Circular of the State Administration of
Foreign Exchange on Issuing the Regulations on Foreign Exchange Administration of the
Overseas Direct Investment of Domestic Institutions, PRC enterprises must register for
overseas direct investment with a local SAFE branch.
We may not be fully informed of the identities of all our Shareholders or beneficial owners who
are PRC entities, and we cannot provide any assurance that all of our Shareholders and
beneficial owners who are PRC entities will comply with our request to complete the overseas
direct investment procedures under the aforementioned regulations or other related rules in a
timely manner, or at all. If they fail to complete the filings or registrations required by the
overseas direct investment regulations, the relevant authorities may order them to suspend or
cease the implementation of such investment and make corrections within a specified time.
We may rely to a significant extent on dividends and other distributions on equity paid by our
principal operating subsidiaries to fund offshore cash and financing requirements. Any
limitation on the ability of our operating subsidiaries to make payments to us could have a
material adverse effect on our ability to conduct our business.
We are a holding company and rely on dividends and other distributions on equity paid by our
principal operating entities, for our offshore cash and financing requirements, including the
funds necessary to pay dividends and other cash distributions to our Shareholders, fund
inter-company loans, service any debt we may incur and pay our expenses. When our principal
operating entities incur additional debt, the instruments governing the debt may restrict their
ability to pay dividends or make other distributions or remittances to us. Furthermore, the laws,
rules and regulations applicable to our principal operating subsidiaries and certain other
subsidiaries permit payments of dividends only out of their retained earnings, if any,
determined in accordance with applicable accounting standards and regulations. For example,
under Thai laws, rules and regulations, each of our subsidiaries and consolidated affiliated
entities incorporated in Thailand is required to set aside, every time the dividend payment is
made, at least 5% of the profits until the reserve fund reaches 10% of the capital of the
company, and in the PRC, at least 10% of its net income each year to fund certain statutory
reserves until the cumulative amount of such reserves reaches 50% of its registered capital.
These reserves, together with the registered capital, are not distributable as cash dividends. As
a result of these laws, rules and regulations, our principal operating entities and consolidated
affiliated entities in Thailand and the PRC are restricted in their ability to transfer a portion of
– 77 –
RISK FACTORS
their respective net assets to their shareholders as dividends, loans or advances. In addition,
registered capital and capital reserve accounts are also restricted from withdrawal in the PRC,
up to the amount of net assets held in each operating subsidiary.
The distribution of dividends to us from the subsidiaries in the other geographic markets in
which we operate is subject to restrictions imposed by the applicable laws and regulations in
these markets. For example, although the current foreign exchange control regulations do not
restrict the ability of our subsidiaries in Thailand to distribute dividends to us, the relevant
regulations may be changed and the ability of these subsidiaries to distribute dividends to us
may be restricted in the future. Further, Philippine law requires that dividends may only be
declared out of unrestricted retained earnings; and there are regulations requiring registration
of the foreign investment with the Bangko Sentral ng Pilipinas (“BSP”), the Philippine Central
Bank, to be able to source from the Philippine banking system foreign currency to be used in
repatriating capital or remitting dividends outside the Philippines.
PRC regulation of loans to and direct investment in PRC entities by offshore holding
companies may delay us from using the [REDACTED] of this [REDACTED] to make loans
or additional capital contributions to our PRC subsidiaries and to make loans to our VIE,
which could materially and adversely affect our liquidity and our ability to fund and expand
our business.
In utilizing the [REDACTED] of this [REDACTED], we, as an offshore holding company, are
permitted under PRC laws and regulations to provide funding to our PRC subsidiaries, which
are treated as “foreign-invested enterprises” under PRC laws, through loans or capital
contributions. However, loans by us to our PRC subsidiaries to finance their activities cannot
exceed statutory limits and must be registered with the local counterpart of SAFE and capital
contributions to our PRC subsidiaries are subject to the requirement of making necessary
registration with competent governmental authorities in the PRC.
SAFE promulgated the Notice of the SAFE on Reforming the Administration of Foreign
Exchange Settlement of Capital of Foreign-invested Enterprises, or Circular 19, effective on
June 1, 2015. According to Circular 19, the flow and use of the RMB capital converted from
foreign currency-denominated registered capital of a foreign-invested company is regulated
such that RMB capital may not be used, whether directly or indirectly, for the issuance of RMB
entrusted loans, the repayment of inter-enterprise loans (including third party advance) or the
repayment of bank loans that have been transferred to a third party. Although Circular 19
allows RMB capital converted from foreign currency-denominated registered capital of a
foreign-invested enterprise to be used for equity investments within the PRC, it also reiterates
the principle that RMB converted from the foreign currency-denominated capital of a
foreign-invested company may not be directly or indirectly used for purposes beyond its
business scope. Thus, it is unclear whether SAFE will permit such capital to be used for equity
investments in the PRC in actual practice. SAFE promulgated the Notice of the SAFE on
Reforming and Regulating the Foreign Exchange Settlement Management Policy of Capital
Account, or Circular 16, effective on June 9, 2016, which reiterates some of the rules set forth
in Circular 19, but changes the prohibition against using RMB capital converted from foreign
currency-denominated registered capital of a foreign-invested company to issue RMB
entrusted loans to a prohibition against using such capital to issue loans to non-associated
enterprises. Violations of Circular 19 and Circular 16 could result in administrative penalties.
Circular 19 and Circular 16 may significantly limit our ability to transfer any foreign currency
we hold, including the net [REDACTED] from this [REDACTED], to our PRC subsidiaries,
which may adversely affect our liquidity and our ability to fund and expand our business in the
PRC.
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RISK FACTORS
On October 23, 2019, the SAFE promulgated the Notice of the SAFE on Further Promoting the
Convenience of Cross-border Trade and Investment, or the SAFE Circular 28, which permits
non-investment foreign-invested enterprises to use their capital funds to make equity
investments in the PRC, with genuine investment projects and in compliance with effective
foreign investment restrictions and other applicable laws. However, as the SAFE Circular 28
was issued recently, there are still substantial uncertainties as to its interpretation and
implementations in practice.
In light of the various requirements imposed by PRC regulations on loans to, and direct
investments in, PRC entities by offshore holding companies, we cannot assure you that we will
be able to complete the necessary government registrations or obtain the necessary government
approvals on a timely basis, if at all, with respect to future loans or future capital contributions
by us to our PRC subsidiaries. As a result, uncertainties exist as to our ability to provide prompt
financial support to our PRC subsidiaries when needed. If we fail to complete such
registrations or obtain such approvals, our ability to use foreign currency, including the
[REDACTED] we received from this [REDACTED], and to capitalize or otherwise fund our
PRC operations may be negatively affected, which could materially and adversely affect our
liquidity and our ability to fund and expand our business.
Governmental control of currency conversion may limit our ability to utilize our revenues
effectively and affect the value of your investment.
The PRC government imposes controls on the convertibility of the RMB into foreign
currencies and the remittance of currency out of the PRC. We expect to receive a portion of any
future revenues we earn in RMB. Under our current corporate structure, our Cayman Islands
holding company may rely on dividend payments from our PRC subsidiaries to fund any cash
and financing requirements we may have. Under existing PRC foreign exchange regulations,
payments of current account items, including profit distributions, interest payments and trade
and service-related foreign exchange transactions, can be made in foreign currencies without
prior approval of SAFE by complying with certain procedural requirements. Specifically, under
the existing exchange restrictions, without prior approval of SAFE, cash generated from the
operations of our PRC subsidiaries in the PRC may be used to pay dividends to our company.
However, approval from or registration or filing with appropriate government authorities is
required where RMB is to be converted into foreign currency and remitted out of the PRC to
pay capital expenses such as the repayment of loans denominated in foreign currencies. As a
result, we need to obtain SAFE approval to use cash generated from the operations of our PRC
subsidiaries to pay off their respective debt in a currency other than RMB owed to entities
outside the PRC, or to make other capital expenditure payments outside the PRC in a currency
other than RMB.
If any of our Shareholders regulated by such policies fails to satisfy the applicable overseas
direct investment filing or approval requirement timely or at all, it may be subject to penalties
from the relevant PRC authorities. The PRC government may at its discretion further restrict
access in the future to foreign currencies for current account transactions. If the foreign
exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our
foreign currency demands, we may not be able to pay dividends in foreign currencies to our
Shareholders.
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RISK FACTORS
The current tensions in international trade and rising global and cross-regional political
tensions.
Our operations are adversely affected by the regional and global economic markets. Rising
political tensions could reduce levels of trades, investments, technological exchanges, and
other economic activities. Such tensions and any escalation thereof, may have a negative
impact on the general, economic, political, and social conditions in China and other
jurisdictions where we operate. In case of a tightening of credit in financial markets globally,
this could also impact the markets where we operate and our ability to arrange for financing
for our capital requirements. In addition, any adverse impact on our customers or business
partners arising from such tensions, sanctions or other events beyond their control, may disrupt
our business relationships with them. Any difficulties we face in accessing financing on
acceptable terms and conditions could have a material adverse effect on our business, financial
condition, results of operations and prospects.
Additionally, Russian actions with respect to Ukraine have resulted in certain sanctions and
export controls being imposed by the United States, the European Union, the United Kingdom
and other jurisdictions. Our cross-border services may involve transportation and shipment
through the impacted areas. The conflict between Russia and Ukraine, including related
economic sanctions, could lead to disruption, instability and volatility in global markets and
industries that could negatively impact our business. We cannot predict the impact of the
Russia-Ukraine conflict and any heightened military conflict or geopolitical instability that
may follow. Any such disruptions or resulting sanctions may adversely affect our business.
Risks Related to the WVR Structure
The concentration of our Share’s voting power limited our Shareholders’ ability to influence
corporate matters.
Our proposed dual-class structure with weighted voting rights will limit your ability to
influence corporate matters and could discourage others from pursuing any change of control
transactions that holders of our Shares may view as beneficial. Our Company will be controlled
through weighted voting rights upon the completion of the [REDACTED]. On each resolution
subject to a vote at general meetings on a poll, each Class A Share shall entitle its holder to
ten votes and each Class B Share shall entitle its holder to one vote, except for resolutions with
respect to the Reserved Matters, in relation to which each Class A Share and each Class B Share
shall entitle its holder to one vote on a poll at a general meeting of our Company. We will issue
Class B Shares in the [REDACTED]. For further details about our shareholding structure, see
“Share Capital – Weighted Voting Rights Structure” of this document.
Mr. Li will beneficially own 979,333,410 Class A Shares, representing approximately
[REDACTED] of the total voting rights in our Company (assuming the [REDACTED] is not
exercised) with respect to shareholder resolutions relating to matters other than the Reserved
Matters. Mr. Li therefore has considerable influence over matters requiring shareholder
approval, including the election of Directors (excluding the appointment, election or removal
of any independent non-executive Director) and significant corporate transactions, such as such
as a merger or other sale of our Company or our assets, for the foreseeable future. This
concentrated control will limit or severely restricts our Shareholders’ ability to influence
corporate matters and, as a result, we may take actions that holders of Class B Shares do not
view as beneficial.
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RISK FACTORS
Our WVR Beneficiary has significant influence over our Company and may not act in the
best interests of our other Shareholders.
Our WVR Beneficiary has substantial influence over our business and operations, including
matters relating to management and policies, decisions in relation to acquisitions, expansion
plans, business consolidation, the sale of all or substantially all of our assets, nomination of
directors, dividends or other distributions, as well as other significant corporate actions. The
concentration of voting power and the substantial influence of our WVR Beneficiary over our
Company may discourage, delay or prevent a change in control of our Company, which could
deprive other shareholders of an opportunity to receive a premium for their Shares as part of
a sale of our Company and reduce the price of our Shares. The interests of our WVR
Beneficiary may differ from the interests of our other Shareholders. Subject to the Listing
Rules, our Articles of Association and other applicable laws and regulations, our WVR
Beneficiary will continue to have the ability to exercise substantial influence over us and to
cause us to enter into transactions or take, or fail to take, actions or make decisions which
conflict with the best interests of our other Shareholders.
Risks Related to the [REDACTED]
There has been no [REDACTED] for our Shares prior to the [REDACTED], and you may
not be able to resell our Shares at or above the price you pay, or at all.
Prior to the completion of the [REDACTED], there has been no [REDACTED] for our Shares.
There can be no assurance that an active trading market for our Shares will develop or be
sustained after completion of the [REDACTED]. The [REDACTED] is the result of
negotiations between our Company and the [REDACTED] (for themselves and on behalf of
the [REDACTED]), which may not be indicative of the price at which our Shares will be
[REDACTED] following completion of the [REDACTED]. The [REDACTED] of our Shares
may drop below the [REDACTED] at any time after completion of the [REDACTED].
The [REDACTED] of the Shares may be volatile which could result in substantial losses to
you.
In addition, the [REDACTED] of our Shares may be volatile and could fluctuate widely in
response to factors beyond our control, including general market conditions of the securities
markets in Hong Kong, China, the United States and elsewhere in the world. In particular, the
performance and fluctuation of the market prices of other companies with business operations
located in Southeast Asia and China countries that have listed their securities in Hong Kong
may affect the volatility in the price of and [REDACTED] for our Shares. A number of
companies have listed their securities, and some are in the process of preparing for listing their
securities, in Hong Kong. Some of these companies have experienced significant volatility,
including significant price declines after their [REDACTED]. The trading performances of the
securities of these companies at the time of or after their offerings may affect the overall
investor sentiment towards companies with operations in China and listed in Hong Kong,
which consequently may impact the [REDACTED] of our Shares. These broad market and
industry factors may significantly affect the [REDACTED] and volatility of our Shares,
regardless of our actual operating performance, and may result in losses on your investment in
our Shares.
– 81 –
RISK FACTORS
The actual or perceived sale or availability for sale of substantial amounts of our Shares,
especially by our directors, executive officers and substantial shareholders, could adversely
affect the market price of our Shares.
Future sales of a substantial number of our Shares, especially by our directors, executive
officers and substantial shareholders, or the perception or anticipation of such sales, could
negatively impact the [REDACTED] of our Shares in Hong Kong and our ability to raise
equity capital in the future at a time and price that we deem appropriate.
The Shares held by our substantial shareholders are subject to certain lock-up periods
beginning on the date on which [REDACTED] in our Shares commences on the Stock
Exchange. While we currently are not aware of any intention of such persons to dispose of
significant amounts of their Shares after the expiry of the lock-up periods, we cannot assure
you that they will not dispose of any Shares they may own now or in the future. In addition,
certain existing shareholders of our Shares are not subject to lock-up agreements. Market sale
of Shares by such shareholders and the availability of these Shares for future sale may have
negative impact on the [REDACTED] of our Shares. See “History and Corporate Structure –
Pre-[REDACTED] Investments” for more details of the existing shareholders not subject to
lock-up agreements.
You will incur immediate and substantial dilution and may experience further dilution in the
future.
As the [REDACTED] of Shares is higher than the net tangible book value per share of our
Shares immediately prior to the [REDACTED], purchasers of our Shares in the [REDACTED]
will experience an immediate dilution. If we issue additional Shares in the future, purchasers
of our Shares in the [REDACTED] may experience further dilution in their shareholding
percentage.
We cannot assure you that we will declare and distribute any amount of dividends in the
future and you may have to rely on price appreciation of our Shares for return on your
investment.
We currently intend to retain most, if not all, of our available funds and any future earnings to
fund the development and growth of our business. As a result, we have not yet adopted a
dividend policy with respect to future dividends. Therefore, you should not rely on an
investment in our Shares as a source for any future dividend income.
Our board of directors has discretion as to whether to distribute dividends, subject to certain
restrictions under the Cayman Islands laws, namely that our Company may only pay dividends
either out of profits or share premium account, and provided always that in no circumstances
may a dividend be paid if this would result in our Company being unable to pay its debts as
they fall due in the ordinary course of business. In addition, our shareholders may approve, in
a general meeting, any declaration of dividends, but no dividend may exceed the amount
recommended by our board of directors. Even if our board of directors decides to declare and
pay dividends, the timing, amount and form of future dividends, if any, will depend on, among
other things, our future results of operations and cash flow, our capital requirements and
surplus, the amount of distributions, if any, received by us from our subsidiary, our financial
condition, contractual restrictions and other factors deemed relevant by our board of directors.
Accordingly, the return on your investment in our Shares will likely depend entirely upon any
future price appreciation of our Shares. There is no assurance that our Shares will appreciate
in value or even maintain the price at which you purchased the Shares. You may not realize a
return on your investment in our Shares and you may even lose your entire investment in our
Shares.
– 82 –
RISK FACTORS
Investors may experience difficulties in enforcing Shareholder rights.
Our Company is an exempted company incorporated in the Cayman Islands with limited
liability and the laws of the Cayman Islands differ in some respects from those of Hong Kong
or other jurisdictions where investors may be located. The corporate affairs of our Company
are governed by the Memorandum and the Articles of Association, the Cayman Companies Act
and the common law of the Cayman Islands. The rights of Shareholders to take legal action
against our Company and/or our Directors, actions by minority Shareholders and the fiduciary
duties of our Directors to our Company under Cayman Islands laws are to a large extent
governed by the common law of the Cayman Islands. The rights of the Shareholders and the
fiduciary duties of our Directors under Cayman Islands laws may differ in some respects as
they would be under statutes or judicial precedents in Hong Kong or other jurisdictions where
investors may be located. As a result, Shareholders may have more difficulties in exercising
their rights against the management of our Company, Directors or major Shareholders than they
would as shareholders of a Hong Kong company or company incorporated in other
jurisdictions.
There can be no assurance of the accuracy or completeness of certain facts, forecasts and
other statistics obtained from various government publications, market data providers and
other independent third-party sources, including the industry expert reports, contained in
this document.
This document, particularly “Industry Overview,” contains information and statistics relating
to the express delivery market. Such information and statistics have been derived from
third-party reports, either commissioned by us or publicly accessible and other publicly
available sources. We believe that the sources of the information are appropriate sources for
such information, and we have taken reasonable care in extracting and reproducing such
information. However, we cannot assure you the quality or reliability of such source materials.
The information has not been independently verified by us, the [REDACTED], the
[REDACTED], the [REDACTED], the Joint Sponsors, the [REDACTED], the
[REDACTED], the [REDACTED] or any other party involved in the [REDACTED], and no
representation is given as to its accuracy. Collection methods of such information may be
flawed or ineffective, or there may be discrepancies between published information and market
practice, which may result in the statistics being inaccurate or not comparable to statistics
produced for other economies. You should therefore not place undue reliance on such
information. In addition, we cannot assure you that such information is stated or compiled on
the same basis or with the same degree of accuracy as similar statistics presented elsewhere.
In any event, you should consider carefully the importance placed on such information or
statistics.
Forward-looking statements contained in this document are subject to risks and

uncertainties.
This document contains forward-looking statements with respect to our business strategies,
operating efficiencies, competitive positions, and growth opportunities for existing operations,
plans and objectives of management, certain [REDACTED] information and other matters.
The words “anticipate,” “believe,” “could,” “potential,” “continue,” “expect,” “intend,” “may,”
“plan,” “seek,” “will,” “would,” “should” and the negative of these terms and other similar
expressions identify a number of these forward-looking statements. These forward-looking
statements, including, among others, those relating to our future business prospects, capital
expenditure, cash flows, working capital, liquidity and capital resources are necessary
estimates reflecting the best judgment of our Directors and management and involve a number
– 83 –
RISK FACTORS
of risks and uncertainties that could cause actual results to differ materially from those
suggested by the forward-looking statements. As a consequence, these forward-looking
statements should be considered in light of various important factors, including those set out
in “Risk Factors” in this document. Accordingly, such statements are not a guarantee of future
performance and you should not place undue reliance on any forward-looking information. All
forward-looking statements in this document are qualified by reference to this cautionary
statement.
You should read the entire document carefully and should not rely on any information
contained in press articles or other media regarding us and the [REDACTED].
We strongly caution you not to rely on any information contained in press articles or other
media regarding us and the [REDACTED]. Prior to the publication of this document, there has
been press and media coverage regarding us and the [REDACTED]. Such press and media
coverage may include references to certain information that does not appear in this document,
including certain operating and financial information and projections, valuations and other
information. We have not authorized the disclosure of any such information in the press or
media and do not accept any responsibility for any such press or media coverage or the
accuracy or completeness of any such information or publication. We make no representation
as to the appropriateness, accuracy, completeness or reliability of any such information or
publication. To the extent that any such information is inconsistent or conflicts with the
information contained in this document, we disclaim responsibility for it and you should not
rely on such information.
There will be a time gap of several business days between [REDACTED] and [REDACTED]
of our Class B Shares [REDACTED] in the [REDACTED]. Holders of our Shares are
subject to the risk that [REDACTED] of our Shares could fall during the period before
[REDACTED] of our Shares begins.
The [REDACTED] of our Shares is expected to be determined on the [REDACTED].

However, our Shares will not commence [REDACTED] on the Hong Kong Stock Exchange
until they are delivered, which is expected to be five Hong Kong business days after the
[REDACTED] date. As a result, investors may not be able to sell or deal in our Shares during
that period. Accordingly, holders of our Shares are subject to the risk that the price of our
Shares could fall before [REDACTED] begins as a result of unfavorable market conditions, or
other adverse developments, that could occur between the time of sale and the time
[REDACTED] begins.
– 84 –
WAIVERS
In preparation for the [REDACTED], our Company has applied for the following waivers from
strict compliance with the relevant provisions of the Listing Rules:
MANAGEMENT PRESENCE IN HONG KONG
Pursuant to Rule 8.12 of the Listing Rules, our Company must have sufficient management
presence in Hong Kong, which normally means that at least two executive directors must be
ordinarily resident in Hong Kong. Since most of our Company’s core business operations are
based, managed and conducted outside of Hong Kong, our Company does not have, and in the
foreseeable future will not have, a sufficient management presence in Hong Kong for the
purpose of satisfying the requirement under Rule 8.12 of the Listing Rules.
Accordingly, we have applied to the Stock Exchange for, and the Stock Exchange [has granted]
us, a waiver from strict compliance with Rule 8.12 of the Listing Rules. We will ensure that
there are adequate and efficient arrangements to achieve regular and effective communication
between us and the Stock Exchange as well as compliance with the Listing Rules by way of
the following arrangements:
1. Authorized representatives: we have appointed Mr. Li, our sole executive Director and
Ms. Yin Shan Hui (“Ms. Hui”), our company secretary, as the authorized representatives
(“Authorized Representatives”) for the purpose of Rule 3.05 of the Listing Rules. The
Authorized Representatives will act as our principal channel of communication with the
Stock Exchange and would be readily contactable by phone and email to deal promptly
with enquiries from the Stock Exchange. Ms. Hui ordinarily resides in Hong Kong
whereas Mr. Li ordinarily resides in the PRC, and Mr. Li possesses valid travel documents
and is able to renew such travel documents when they expire in order to visit Hong Kong.
Accordingly, the Authorized Representatives will be able to meet with the relevant
members of the Stock Exchange to discuss any matters in relation to our Company within
a reasonable period of time. The Company will also inform the Stock Exchange promptly
in respect of any change in the Authorized Representatives. Please see “Directors and
Senior Management” for more information about our Authorized Representatives.
2. Directors: to facilitate communication with the Stock Exchange, we have provided the
Authorized Representatives and the Stock Exchange with the contact details (such as
mobile phone numbers, office phone numbers, e-mail addresses, to the extent possible) of
each of our Directors such that the Authorized Representatives would have the means for
contacting all our Directors promptly at all times as and when the Stock Exchange wishes
to contact our Directors on any matters. In the event that any Director expects to travel
or otherwise be out of office, he or she will provide the phone number of the place of
his/her accommodation to the Authorized Representatives. To the best of our knowledge
and information, each Director who is not ordinarily resident in Hong Kong possesses or
can apply for valid travel documents to visit Hong Kong and can meet with the Stock
Exchange within a reasonable period after requested by the Stock Exchange.
3. Compliance adviser: we have appointed Somerley Capital Limited as our compliance

adviser (the “Compliance Adviser”) in compliance with Rule 3A.19 and Rule 8A.33 of
the Listing Rules. The Compliance Adviser will, among other things and in addition to the
Authorized Representatives, provide us with professional advice on continuing
obligations under the Listing Rules and act as additional channel of communication of the
Company with the Stock Exchange. The Compliance Adviser will be available to answer
enquiries from the Stock Exchange and will act as the principal channel of
communication with the Stock Exchange when the Authorized Representatives are not
available.
– 85 –
WAIVERS
4. Hong Kong legal adviser: we will retain a Hong Kong legal adviser to advise us on the
on-going compliance requirements, any amendment or supplement to and other issues
arising under the Listing Rules and other applicable laws and regulations in Hong Kong
after the Listing.
WAIVER IN RELATION TO RULE 8A.12 OF THE LISTING RULES REGARDING

MINIMUM ECONOMIC INTEREST AT [REDACTED]
Rule 8A.12 of the Listing Rules requires that the beneficiaries of weighted voting rights must
beneficially own collectively at least 10% of the underlying economic interest in the
applicant’s total issued share capital at the time of its initial listing.
The note to Rule 8A.12 further stipulates that the Stock Exchange may be prepared to accept
a lower minimum shareholding percentage, on a case by case basis, if the lower underlying
economic interest still represents a very large amount in absolute dollar terms (for example if
the applicant has an expected market capitalization of over HK$80 billion at the time of its
initial listing) taking into account such other factors about the applicant as the Stock Exchange
may in its discretion, consider appropriate.
In recognition of Mr. Li’s continuous contributions to the Company and to ensure further
alignment of Mr. Li’s interests with those of the Company and its shareholders, the existing
Shareholders of the Company unanimously agreed to issue 24,557,934 class B ordinary shares
(the “Founder Award Shares”) at par value to Jumping Summit Limited, a company
controlled by Mr. Li, on May 17, 2023. Such class B ordinary shares will be redesignated to
Class A Shares following the Reclassification, Redesignation and Share Subdivision. Mr. Li
has undertaken to proportionately relinquish the Founder Award Shares if he ceases to serve as
Chairman of the Board, or as the Chief Executive Officer, or such other position equivalent to
the Chief Executive Officer within the four year period commencing on the [REDACTED]
(the “Undertaking”). See “History and Corporate Structure – Issuance of Founder Award
Shares” for further details.
Immediately following the completion of the [REDACTED], assuming the non-exercise of the
[REDACTED], based on the [REDACTED] of HK$[REDACTED], being the mid-point of
the indicative [REDACTED] range, we expect to have a market capitalization of
HK$[REDACTED] billion (or US$[REDACTED] billion). Without taking into account the
Founder Award Shares and assuming the [REDACTED] is not exercised, Mr. Li is expected
to beneficially own approximately [REDACTED]% of the underlying economic interest in the
issued share capital of the Company upon [REDACTED].
We have applied to the Stock Exchange[, and the Stock Exchange has granted us,] a waiver
from strict compliance with the requirements of Rule 8A.12 of the Hong Kong Listing Rules
on the condition that:
i. the Company will have an expected market capitalisation which is over HK$80 billion at
the time of the [REDACTED];
ii. Mr. Li will beneficially own [REDACTED]% of the underlying economic interests that
are not subject to the Undertaking in the Company’s total issued share capital at the time
of [REDACTED];
iii. the Undertaking would not result in a breach of the requirement under Rule 8A.13 of the
Listing Rules; and
– 86 –
WAIVERS
iv. the Company will make appropriate disclosure of such lower economic interests
percentage in this document, including the details of the issuance of the Founder Award
Shares, the class and number of Shares issued, the consideration received, the benefits to
the Company and the terms of the Undertaking governing the Founder Award Shares, and
any relinquishment of shares shall be effected in a manner that is in full compliance with
the applicable Listing Rules.
WAIVER IN RELATION TO THE DISCLOSURE REQUIREMENTS WITH RESPECT

TO CHANGES IN SHARE CAPITAL
We have applied for, and the Stock Exchange [has granted], a waiver from strict compliance
with the requirements of paragraph 26 of Part A of Appendix 1 to the Listing Rules in respect
of disclosing the particulars of any alterations in the capital of any member of the Group within
two years immediately preceding the issue of this document.
We have identified 14 entities that we consider are the major subsidiaries and Consolidated
Affiliated Entities primarily responsible for the track record results of our Group (the
“Principal Entities”, and each a “Principal Entity”). For further details, see “History and
Corporate Structure – Our Major Subsidiaries and Operating Entities.” Globally, our Group has
approximately 322 subsidiaries and Consolidated Affiliated Entities, across 22 different
jurisdictions as at December 31, 2022. It would be unduly burdensome for our Company to
disclose this information, which would not be material or meaningful to investors. By way of
illustration, for the three years ended December 31, 2020, 2021 and 2022, the aggregate
revenue of the Principal Entities represented approximately 87.6%, 83.1% and 73.4% of the
Group’s total revenues, respectively. Accordingly, the remaining subsidiaries and Consolidated
Affiliated Entities in our Group are insignificant to the overall results of the Group.
Particulars of the changes in the share capital of the Company and the Principal Entities have
been disclosed in “Statutory and General Information – 1. Further Information about our Group
– 1.2 Changes in the share capital of our Company” and “Statutory and General Information
– 1. Further Information about our Group – 1.3 Changes in the share capital of our major
subsidiaries and operating entities” in Appendix V to this document.
WAIVER IN RELATION TO THE PRE-[REDACTED] SHARE INCENTIVE PLAN OF

THE COMPANY
Rule 17.02(1)(b) of the Listing Rules requires a listing applicant to, inter alia, disclose in the
document full details of all outstanding options and awards and their potential dilution effect
on the shareholdings upon listing as well as the impact on the earnings per share arising from
the issue of shares in respect of such outstanding options or awards.
As of the Latest Practicable Date, our Company had granted outstanding restricted share units
(“RSUs”) under the Pre-[REDACTED] Share Incentive Plan to a total of 674 participants (the
“Awardee(s)”) to subscribe for an aggregate of 6,368,100 class A ordinary shares (31,840,500
Class B Shares, following completion of the Reclassification, Redesignation and Share
Subdivision), representing approximately [REDACTED]% of the total number of Shares in
issue immediately after completion of the [REDACTED] (assuming the [REDACTED] is not
exercised). Among the outstanding RSUs, no connected persons of our Company were granted
RSUs. 674 other Awardees (who are not Directors or connected persons of the Company) were
granted RSUs for 6,368,100 class A ordinary shares (31,840,500 Class B Shares, following
completion of the Reclassification, Redesignation and Share Subdivision). No awards
(including options, RSUs and restricted shares) under the Pre-[REDACTED] Share Incentive
Plan will be further granted upon [REDACTED]. For more details of our Pre-[REDACTED]
Share Incentive Plan, see “Statutory and General information – 4. Pre-[REDACTED] Share
Incentive Plan” in Appendix V to this document.
– 87 –
WAIVERS
Our Company has applied to the Stock Exchange for a waiver from strict compliance with the
disclosure requirements under Rule 17.02(1)(b) of the Listing Rules, on the grounds that strict
compliance with the above requirements would be unduly burdensome for our Company for the
following reasons:
(a) since the outstanding RSUs under the Pre-[REDACTED] Share Incentive Plan were
granted to a total of 674 Awardees involved, strict compliance with the relevant disclosure
requirements in this document will require substantial number of pages of additional
disclosure that does not provide any material information to the investing public and
would significantly increase the cost and timing for information compilation and
document preparation;
(b) key information of the outstanding RSUs granted under the Pre-[REDACTED] Share
Incentive Plan to the Directors, senior management and connected persons of our
Company has already been disclosed in “Statutory and General Information – 4.
Pre-[REDACTED] Share Incentive Plan” in Appendix V to this document;
(c) the key information of the Pre-[REDACTED] Share Incentive Plan as disclosed in
“Statutory and General Information – 4. Pre-[REDACTED] Share Incentive Plan” in
Appendix V to this document is sufficient to provide potential investors with information
to make an informed assessment of the potential dilution effect and impact on earnings
per share of the RSUs granted under the Pre-[REDACTED] Share Incentive Plan in their
investment decision making process;
(d) given the nature of the business of the Company, it is extremely important for the
Company to incentivize and reward its regional sponsors, network partners and
franchisees, and the success of the Company’s long-term development plan will very
much depend on the loyalty and contribution of the grantees, whereas the information
relating to the RSUs granted to the grantees is highly sensitive and confidential, and
disclosure of such information may adversely affect the Company’s cost and ability to
recruit and retain such valuable network partners and franchisees;
(e) with respect to the other Awardees, such number of Class B Shares (in aggregate
representing approximately [REDACTED]% of the total issued share capital of our
Company immediately following the completion of the [REDACTED], assuming the
[REDACTED] is not exercised) is not material in the circumstances of our Company, and
the vesting of such RSUs will not cause any material adverse change in the financial
position of our Company; and
(f) the lack of full compliance with such disclosure requirements will not prevent potential
investors from making an informed assessment of the activities, assets and liabilities,
financial position, management and prospects of our Group and will not prejudice the
interest of the investing public.
The Stock Exchange [has granted] us a waiver from strict compliance with the disclosure
requirements under Rule 17.02(1)(b) of the Listing Rules on the condition that:
(a) full details of all the RSUs granted under the Pre-[REDACTED] Share Incentive Plan to
each of the Directors, senior management and connected persons of our Company (if any)
be disclosed in this document, such details include all the particulars required under Rule
17.02(1)(b) of the Listing Rules;
– 88 –
WAIVERS
(b) in respect of the RSUs granted by our Company to the Awardees other than those referred
to in sub-paragraph (a), the following details be disclosed in this document:
(i) the aggregate number of the Awardees and the number of Shares subject to the
RSUs; and
(ii) the vesting period for the RSUs;
(c) the particulars of the waiver granted by the Stock Exchange be disclosed in this
document.
Further details of the Pre-[REDACTED] Share Incentive Plan are set forth in “Statutory and
General Information – 4. Pre-[REDACTED] Share Incentive Plan” in Appendix V to this
document.
NON-EXEMPT CONTINUING CONNECTED TRANSACTIONS
We have entered into, and are expected to continue, certain transactions that will constitute
non-exempt continuing connected transactions of our Company under the Listing Rules upon
[REDACTED]. Accordingly, we have applied to the Stock Exchange for, and the Stock
Exchange has granted, waivers from strict compliance with (i) the announcement, circular and
independent Shareholders’ approval requirements under Rule 14A.105 of the Listing Rules; (ii)
the requirement of setting an annual cap set out in Chapter 14A of the Listing Rules for certain
continuing connected transactions; and (iii) the requirement of limiting the term of certain
continuing connected transactions to three years or less under Rule 14A.52 of the Listing
Rules. For further details in this respect, see “Continuing Connected Transactions”.
[REDACTED]
– 89 –
WAIVERS
[REDACTED]
– 90 –
INFORMATION ABOUT THIS DOCUMENT AND THE [REDACTED]
[REDACTED]
– 91 –
[REDACTED]
– 92 –
[REDACTED]
– 93 –
[REDACTED]
– 94 –
DIRECTORS AND PARTIES INVOLVED IN THE [REDACTED]
DIRECTORS
Name Address Nationality
Executive Director
Jet Jie Li Unit 301, No.16, Lane 899 Chinese

(李傑) Xinfeng Middle Road
Huaxinzhen, Qingpu District
Shanghai, PRC
Non-executive Directors
(in alphabetical order)
Alice Yu-fen Cheng 10F-2, No. 451, Section 6 Chinese

(鄭玉芬) Min-Quan East Road (Taiwan)
Neihu District, Taipei 114
Taiwan
Qinghua Liao Unit 2-2-1301 Chinese

(廖清華) Xinyi-Yicuihaoyuan
Dezheng Middle Road, Changan
Dongguan City, Guangdong Province,
PRC
Yuan Zhang Flat C, 19/F, Tower 1 Chinese

(張源) Victoria Towers (Hong Kong)
188 Canton Road
Kowloon, Hong Kong
Independent non-executive Directors

(in alphabetical order)
Charles Zhaoxuan Yang Floor 8, Block 1, Chuang’s Tower Chinese

(楊昭烜) 30-32 Connaught Road Central (Hong Kong)
Hong Kong
Erh Fei Liu 32H, Tower 2, The Avenue Phase 2 Chinese

(劉二飛) 200 Queen’s Road East (Hong Kong)
Hong Kong
Peng Shen No. 2253, Mingdu Garden Chinese

(沈鵬) Houshayu Area
Shunyi District
Beijing, PRC
For more information on our Directors, see “Directors and Senior Management”.
– 95 –
PARTIES INVOLVED IN THE [REDACTED]
Joint Sponsors Morgan Stanley Asia Limited

46/F, International Commerce Centre
1 Austin Road West
Kowloon, Hong Kong
Merrill Lynch (Asia Pacific) Limited

55/F, Cheung Kong Center
2 Queen’s Road Central
Central, Hong Kong
China International Capital Corporation

Hong Kong Securities Limited
29/F, One International Finance Centre
1 Harbour View Street
Central, Hong Kong
[REDACTED]
– 96 –
[REDACTED]
Legal Advisers to Our Company As to laws of Hong Kong and the U.S.:
Latham & Watkins LLP

18th Floor, One Exchange Square
8 Connaught Place, Central
Hong Kong
As to Indonesian laws:
Hutabarat Halim & Rekan

Jl. Kawi Raya No.46A
RT.6/RW.2, Guntur
Kecamatan Setiabudi
Kota Jakarta Selatan
Daerah Khusus Ibukota Jakarta 12980
Indonesia
As to laws of Vietnam:
Vietnam International Law Firm (VILAF)

HCO Building (Melia), 6th Floor
44B Ly Thuong Kiet Street
Hanoi, Vietnam
– 97 –
As to Malaysian laws:
Rahmat Lim & Partners

Suite 33.01, Level 33
The Gardens North Tower
Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur
Malaysia
As to laws of the Philippines:
SyCip Salazar Hernandez & Gatmaitan

SyCipLaw Center
105 Paseo de Roxas
Makati City 1226
The Philippines
As to laws of Thailand:
Weerawong, Chinnavat & Partners Ltd.

22nd Floor Mercury Tower
540 Ploenchit Road, Lumpini
Pathumwan, Bangkok 10330
Thailand
As to laws of PRC:
DaHui Lawyers
Suite 3720 China World Tower A
1 Jianguomenwai Avenue
Beijing
100040 PRC
As to laws of Cayman Islands:
Harney Westwood & Riegels

3501, The Center
Hong Kong
Legal Advisers to the [REDACTED] As to laws of Hong Kong and the U.S.:
Skadden, Arps, Slate, Meagher & Flom

and affiliates
42/F, Edinburgh Tower, The Landmark
Hong Kong
– 98 –
As to laws of PRC:
Han Kun Law Offices

9/F, Office Tower C1, Oriental Plaza
1 East Chang An Ave, Dongcheng District
Beijing 100738, PRC
Commerce & Finance Law Offices

12-14th Floor, China World Office 2
No. 1 Jianguomenwai Avenue
Beijing 100004, PRC
Reporting Accountant and Auditor PricewaterhouseCoopers

Certified Public Accountants and Registered
Public Interest Entity Auditor
22/F, Prince’s Building
Central
Hong Kong
Industry Consultant Frost & Sullivan Limited

3006, Two Exchange Square
8 Connaught Place
Central, Hong Kong
[REDACTED]
Compliance Adviser Somerley Capital Limited

20/F China Building
Hong Kong
– 99 –
CORPORATE INFORMATION
Registered office in the Cayman Islands Harneys Fiduciary (Cayman) Limited

4th floor, Harbour Place
103 South Church Street
P.O. Box 10240
Grand Cayman, KY1-1002
Cayman Islands
Principal place of business in the PRC Room 1001, Block A, Tower 5

1777 Hualong Road, Huaxinzhen
Qingpu District
Shanghai
PRC
Principal place of business in Hong Kong 5/F, Manulife Place

348 Kwun Tong Road
Kowloon, Hong Kong
Company’s website www.jtexpress.com

(The contents on this website do not form
part of this document)
Company Secretary Yin Shan Hui (許燕珊), ACG, HKACG
Authorized Representatives Jet Jie Li (李傑)

Unit 301, No. 16, Lane 899
Xinfeng Middle Road
Huaxinzhen, Qingpu District
Shanghai
PRC
Yin Shan Hui (許燕珊), ACG, HKACG

5/F, Manulife Place
348 Kwun Tong Road
Kowloon, Hong Kong
Audit Committee Charles Zhaoxuan Yang (Chairman)

Alice Yu-fen Cheng
Erh Fei Liu
Remuneration Committee Erh Fei Liu (Chairman)

Jet Jie Li
Peng Shen
Nomination Committee Erh Fei Liu (Chairman)

Jet Jie Li
Peng Shen
Corporate Governance Committee Peng Shen (Chairman)

Charles Zhaoxuan Yang
Erh Fei Liu
– 100 –
CORPORATE INFORMATION
Principal [REDACTED] Harneys Fiduciary (Cayman) Limited

and transfer office 4th floor, Harbour Place
103 South Church Street
P.O. Box 10240
Grand Cayman, KY1-1002
Cayman Islands
[REDACTED]
Principal bankers CTBC Bank Co., Ltd., Hong Kong

Branch
8 Finance Street
Central, Hong Kong
Citibank, N.A., Hong Kong Branch

Champion Tower, Three Garden Road
Central, Hong Kong
The Hong Kong and Shanghai Banking

Corporation Limited
Head Office, 1 Queen’s Road Central
Hong Kong
Shanghai Pudong Development Bank

Offshore Banking Unit
No. 12 Zhong Shan Dong Yi Road
Shanghai, PRC
– 101 –
INDUSTRY OVERVIEW
This section contains certain information, statistics and data which are derived from a
commissioned report from Frost & Sullivan, an Independent Third Party. We believe that
the sources of the information in this section are appropriate sources for such
information and have taken reasonable care in extracting and reproducing such
information. We have no reason to believe that such information is false or misleading or
that any fact has been omitted that would render such information false or misleading in
any material respect. However, neither we nor any other party involved in the
[REDACTED] (excluding Frost & Sullivan) have independently verified such
information, and neither we nor any other party involved in the [REDACTED] are giving
any representation as to the accuracy or completeness of such information. As such,
investors are cautioned not to place any undue reliance on the information, including
statistics and estimates, set forth in this section or similar information included
elsewhere in this document.
SOURCE OF INFORMATION
We engaged Frost & Sullivan to conduct market research and prepare a report concerning the
global express delivery market (the “Frost & Sullivan Report”). We believe that Frost &
Sullivan has specialized research capabilities and experience in this industry. Except as
otherwise noted, all of the data and forecasts contained in this section are derived from the
Frost & Sullivan Report.
FROST & SULLIVAN REPORT
Frost & Sullivan is an independent market intelligence provider that provides market research,
information and advice to companies in various industries, including the express delivery
industry. We have agreed to pay a commission fee of approximately US$455,000 for the Frost
& Sullivan Report. The Frost & Sullivan Report was compiled using both primary and
secondary research conducted in markets where we operate.
Frost & Sullivan’s projection on the size of each of the markets in the Frost & Sullivan Report
takes into consideration various factors, such as (i) primary research including interviews with
industry participants, competitors, downstream customers and recognized third-party industry
associations; and (ii) secondary research including reviews of corporate annual reports,
databases of relevant official authorities, as well as (iii) utilizing the exclusive database
established by Frost & Sullivan over the past decades. Frost & Sullivan has prepared the Frost
& Sullivan Report on the assumptions that (i) the social, economic and political conditions in
the major overseas countries and China markets currently discussed will remain stable during
the forecast period; (ii) government policies on express delivery industries in China and major
overseas countries discussed will remain consistent during the forecast period; and (iii) the
global and China express delivery markets will be driven by the factors which are stated in this
report. The reliability of the Frost & Sullivan Report may be affected by the accuracy of the
foregoing assumptions and factors.
Frost & Sullivan also conducted a consumer survey of the express delivery markets in the five
main country markets of Southeast Asia (Indonesia, Vietnam, Malaysia, the Philippines and
Thailand) and collected 1,500 valid replies (300 for each of the five main country markets)
from respondents including business merchants and individual consumers. The results of the
survey are included in the Frost & Sullivan Report.
– 102 –
INDUSTRY OVERVIEW
We confirm that after taking reasonable care, there has been no adverse change in the market
information since the date of the report prepared by Frost & Sullivan which may qualify,
contradict or have an impact on the information set forth in this section in any material respect.
REGIONAL MARKET DEFINITIONS
Our core operations, express delivery services, span across primarily seven Southeast Asian
countries and China. We define our region of Southeast Asia (“SEA”) as the combined markets
of Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia and Singapore. We have
also expanded globally into Saudi Arabia, UAE, Mexico, Brazil, and Egypt, all of which we
define as our New Markets.
EXPRESS DELIVERY BUSINESS MODELS
Express delivery operators are primarily divided into three main business models, namely
direct operation model, network partner model and regional sponsor model.
Direct operation model. Under a direct operation model, the express delivery operator controls
the entire process of parcel pickup, transportation and delivery, and builds its own sorting
centers, pickup and delivery outlets and delivery teams. Under this model, express delivery
operators take on all revenues and costs in the express delivery process. The direct operation
model typically allows for direct operational control and a higher price, but imposes a
significant demand on capital which may slow the growth of the operations.
Network partner model. Under the network partner model, the express delivery operator is only
responsible for the sorting and line haul transportation process, while network partners are
primarily responsible for first- and last-mile pickup and delivery. Express delivery operators
under a network partner model typically collect waybill fees from network partners and take
on all costs in sorting and transportation. Such model is more demanding upon management
and come with difficulties in controlling service quality.
Regional sponsor model. Under the regional sponsor model, which is currently employed by
J&T, the express delivery operator partners with regional sponsors that assist country
headquarters in operating local delivery networks in designated geographies. Critical parts of
the network, including sorting and line-haul, are operated by country headquarters and the
regional sponsors through regional operating entities, while local pickup and delivery outlets
and service stations are typically either managed directly by regional sponsors or by network
partners. In areas where the express delivery operator engages network partners, such network
partners function similarly to network partners under a network partner model. Advantages of
the regional sponsor model include aligned interest and culture, high flexibility and adaption,
strong operational control and low cost and capital requirement.
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INDUSTRY OVERVIEW
OVERVIEW OF SEA EXPRESS DELIVERY MARKET
SEA economy
SEA is one of the fastest-growing regions in the world, with significant growth in GDP and per
capita income in the historical period from 2018 to 2022. Nominal GDP of SEA grew from
US$2,959.7 billion in 2018 to US$3,525.7 billion in 2022, representing a CAGR of 4.5% over
the period. The SEA region is expected to maintain fast growth at a CAGR of 7.9% and reach
US$5,188.8 billion by 2027. Nominal GDP per capita of SEA is expected to increase from
US$6,216.9 in 2023 to US$8,143.1 in 2027 at a CAGR of 7.0%, which will further drive the
development of the e-commerce retail and express delivery markets in SEA. Among the SEA
countries, Indonesia, the largest country in SEA, had nominal GDP of US$1,289.4 billion in
2022, accounting for 36.6% of SEA’s nominal GDP in 2022, and will continue to be the largest
GDP contributor in the region through 2027. Compared to the 65.2% urbanization rate of China
in 2022, the urbanization rate of SEA was 54.4% in 2022 but is expected to reach 68.1% in
2027 due to continued urbanization and development of infrastructure in SEA. In terms of
demographic structure, SEA has a relatively young population, indicating future growth
potential for new technology and new retail markets including the e-commerce retail industry.
For example, the percentage of the population aged 15 to 29 in SEA was approximately 25%,
which is comparatively higher than the percentage in developed countries such as the United
States, in which approximately 20% of the population was aged 15 to 29 in 2022.
SEA e-commerce retail market
With strong economic growth and increasing Internet and smartphone penetration rates, the
e-commerce retail market in SEA experienced rapid growth from 2018 to 2022. An increasing
number and variety of companies from multiple industries have applied omni-channel retail
strategies that have boosted growth of e-commerce. In addition, social restrictions due to the
COVID-19 pandemic have also contributed to the growth of e-commerce and associated parcel
volumes in recent years. The total transaction value of the e-commerce retail market grew from
US$38.3 billion in 2018 to US$154.8 billion in 2022, representing a CAGR of 41.8% during
the period. In 2022, an estimated 11.1 billion parcels were delivered (including e-commerce
and regular commerce) across SEA, representing year-over-year growth of 15.1%.
Concurrently, demand for fast, high-quality express delivery services has increased.
Market Size of E-commerce Retail Market (by Transaction Value),

Southeast Asia, 2018-2027E
CAGR 18-22 CAGR 23E-27E

USD Billion
Market Size 41.8% 18.6%
400
373.6
350
322.5
300 274.1
250 230.2
200 188.6
154.8
150 128.2
100 88.2
55.7
50 38.3
0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
Indonesia Thailand Vietnam Malaysia Philippines Singapore Cambodia
– 104 –
INDUSTRY OVERVIEW
Indonesia has the largest e-commerce retail market in SEA. The size of Indonesia’s
e-commerce retail market, measured by transaction value, grew at a CAGR of 44.1% from
US$17.1 billion in 2018 to US$73.8 billion in 2022, which represented a 47.7% market share
in SEA in 2022. The number of active e-commerce users in Indonesia increased from 100.4
million in 2018 to 168.6 million in 2022. Other SEA countries have experienced similar
growth. The e-commerce retail market in terms of transaction value in Malaysia, Vietnam, the
Philippines and Thailand have been growing at a CAGR of 44.1%, 41.7%, 37.1%, 42.2%,
respectively, over the same period.
Leading e-commerce platforms in SEA, such as Shopee, Lazada, and Tokopedia, are expected
to maintain fast growth rates, as the improvement of Internet infrastructure and smartphone
penetration in SEA is expected to further facilitate transitions from offline retail into the
e-commerce channel. In a leading market such as Indonesia, the e-commerce penetration rate
is expected to increase from 23.6% in 2023 to 33.3% in 2027, with growth driven by increasing
numbers of online shoppers and product categories. For Thailand, the second largest
e-commerce retail market in SEA, the e-commerce penetration rate was only 14.2% in 2022,
leaving significant room for future growth, and is expecting to reach 29.0% in 2027. The
e-commerce penetration rate in SEA is expected to increase from 17.9% in 2023 to 29.8% in
2027.
As a result, the e-commerce retail market in SEA is expected to reach US$373.6 billion in 2027
from US$188.6 billion in 2023, representing a CAGR of 18.6%. Indonesia is expected to
continue its leading position, and reach US$175.2 billion by 2027 from US$90.3 billion in
2023, representing a CAGR of 18.0%. The Vietnam, Malaysia, Philippines and Cambodia are
expected to grow approximately 20% year over year to 2027.
Social e-commerce is an emerging mode of e-commerce, adopted by companies such as TikTok

and Facebook, which integrates e-commerce with social networks, leveraging on mobile
internet technology, social networking, online payments, logistics and other tools, in order to
sell merchandise online through social group sharing and interaction. Social e-commerce, as a
subset of the e-commerce retail market in SEA, in terms of transaction value, increased rapidly
from US$9.2 billion in 2018 to US$60.2 billion in 2022, representing a CAGR of 59.9%, and
is expected to reach US$179.8 billion in 2027, representing a CAGR of 22.2% from 2023 to
2027. As a percentage of the e-commerce retail market in SEA in terms of transaction value,
social e-commerce grew from 24.0% in 2018 to 38.9% in 2022, and is expected to grow to
48.1% in 2027.
Historical trends and opportunities in the SEA express delivery market
The express delivery industry in SEA is at a nascent stage and is rapidly growing. Driven by
continuous growth of per capita income, rapidly increasing internet penetration and growth of
e-commerce, the SEA express delivery market grew from 3,257.3 million in parcel volume in
2018 to 11,148.4 million in 2022, representing a CAGR of 36.0%, and is expected to reach
23,450.2 million in parcel volume by 2027 from 13,160.3 million in 2023, representing a
CAGR of 15.5%.
– 105 –
INDUSTRY OVERVIEW
Market Size of Express Delivery Market (by Parcel Volume),

Million
24,000 23,450.2
22,000
20,566.3
20,000
17,945.4
18,000
16,000 15,504.8
14,000 13,160.3
12,000 11,148.4
10,000 9,689.7
8,000 7,030.7
6,000 4,944.9
4,000 3,257.3
2,000
0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
Indonesia Thailand Vietnam Malaysia Philippines Singapore Cambodia
Drivers and opportunities for express delivery market in SEA
The following factors have historically contributed to and are expected to continue to fuel the
growth of the SEA express delivery industry:
Growing GDP Per Capita The rising level of GDP per capita in SEA has been a major
and Consumer force behind the booming retail market. The overall SEA market
Purchasing Power is expected to experience growth in GDP per capita from
US$6,216.9 in 2023 to US$8,143.1 in 2027, representing a
CAGR of 7.0%, which demonstrates growth in consumer
purchasing power and will continue to support e-commerce
development.
Improved Transportation Along with improved transportation systems and infrastructure,

and Local Infrastructure express delivery services will see significant improvement in
and Payment Systems terms of service quality, coverage and timeliness, which will
further stimulate the demand for e-commerce express logistics.
As online payments become more widely accepted by regional

banks and timely settlement can be provided, this will
encourage consumers to transact with e-commerce platforms.
Additionally, express delivery service providers have begun to
partner with local banks to offer cash on delivery (COD)
services to resolve difficulties in payment where online
payments are not available.
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INDUSTRY OVERVIEW
Growth of E-commerce The growth of major e-commerce platforms such as Shopee,

Platforms Lazada, and Tokopedia, continues to support a shift in consumer
behavior to online shopping, with more comprehensive services
such as small value goods and community purchases, which
depend heavily on express delivery services.
Growing popularity of social e-commerce will also lead to a

shift in customer behaviors. Platforms such as Facebook and Tik
Tok are typically more popular among younger consumers with
stronger purchasing power. Social e-commerce has already
grown to 38.9% as a percentage of the SEA e-commerce retail
market in 2022.
Favorable Government To promote the sustainable development of express delivery

Policies industry in SEA, governments in the region have issued policies
and guidelines to define the scope of express delivery activities
and standardize the permitting processes to aid the orderly
development of the express delivery industry.
Competitive landscape
The SEA express delivery market historically had been relatively fragmented due to poor
network coverage, underdeveloped transportation infrastructure, unavailability of settlement
options, and difficulty in accessing remote locations. Many players in the express delivery
industry have limited coverage across the region, while relatively few players offer delivery
services across multiple countries in the region. In 2022, the top five players in SEA had only
47.9% market share, compared to China where the top five players had over 70% market share.
Therefore, the SEA market presents significant potential for consolidation.
Top 5 Express Delivery Operators (by Parcel Volume), SEA, 2022
Express Delivery Parcel Volume Market

Rank Business Model Country Coverage
Operators (Millions) Share
Indonesia, Thailand,
1 J&T Regional Sponsor Model Malaysia, Singapore, 2,513.2 22.5%
(supported by network Vietnam, Cambodia,
partner model) Philippines
2 Company A Direct Operation Model Mainly Thailand 802.8 7.2%
3 Company B Direct Operation and Mainly Indonesia 697.5 6.3%

Network Partner Model
4 Company C Direct Operation Model Mainly Thailand 668.5 6.0%
5 Company D Direct Operation and Mainly Indonesia 657.6 5.9%

Network Partner Model
– 107 –
INDUSTRY OVERVIEW
The SEA express and parcel market had historically been supported by government with a
focus on domestic mail and parcel delivery. However, this dynamic is changing due to (i) the
inefficiencies of incumbent firms with higher costs and lower service quality, (ii) the impact
from COVID-19 in the past three years, resulting in a shift of customer behavior and increasing
reliance on online purchases and express delivery, (iii) government promotion of e-commerce
and encouraging the collaboration between e-commerce and parcel delivery players to ensure
that rural communities are covered, and (iv) the fact that SEA continues to serve as a major hub
for cross-border e-commerce.
SEA presents multiple challenges for the development of the express delivery sector. The
primary challenges are as follows:
• Network coverage and difficulty of access. Lack of network coverage, particularly

outside of metropolitan areas, results in certain regions being underserved by express
delivery service providers. Geographic features of certain regions such as Indonesia’s
archipelagic geography also present a challenge for inter-island connectivity that often
involves complex supply chain management.
• Infrastructure. Many regions in SEA have poorly developed transport infrastructure,

ambiguous location identification, as well as barriers caused by local languages and
dialects, which requires address digitalization across jurisdictions to improve the
accuracy and timeliness of deliveries.
• Settlement. Due to the more nascent developmental stage of the SEA e-commerce retail
market, many regions require different modes of settlement. In particular, in certain
regions such as the Philippines, many transactions are still settled in cash, which creates
challenges for online transactions.
• Data integration. E-commerce platforms require real-time data to allow them to manage
inventory and warehousing, as well as track shipments throughout the delivery process.
However, many traditional delivery service providers in SEA only provide manual
tracking.
These challenges leave great opportunities for players with coverage and standardized
customer service across different countries. Competition in the express delivery market in SEA
will continue to increase, with e-commerce platforms building their own express delivery
teams and new players entering into the market. Despite increasing competition, existing top
market players in the market are expected to maintain leadership supported by various
competitive advantages.
Frost & Sullivan conducted a customer survey of the express delivery markets in Indonesia,
Vietnam, Malaysia, the Philippines and Thailand. Based on the survey, with respect to Net
Promoter Score (NPS), J&T Global achieved an average score of 8.4 out of 10, and scored the
highest among its peers with respect to speed, timeliness and service quality satisfaction.
Approximately 93.4% of J&T Global user respondents in the surveyed countries indicated that
they would continue to use the express delivery services provided by J&T Global in the future.
– 108 –
INDUSTRY OVERVIEW
Percentage of Willingness to Continue to Use the Services, Indonesia, Thailand,

the Philippines, Vietnam, and Malaysia*
%
100 93.4 90.5 88.4 Average
90 82.8 78.5 Score of Total
80 Survey Samples
70 79.6%
60
50
0
J&T Express Company C Company A Company D Company B
Note: Consolidated results for total five countries including Indonesia, Thailand, the Philippines, Vietnam, and
Malaysia.
Barriers to entry
New entrants into the SEA express delivery market face multiple major challenges that are
increasing as the industry matures. These challenges are as follows:
• Network. SEA presents challenges in terms of the need to cover vast geographic regions
with many remote locations. Many leading express enterprises have invested in and
developed broad network coverage. It is difficult for new entrants to establish regional
coverage and compete with more established enterprises in the short term.
• Customized operations. The diversity in levels of economic development in the region

requires the adoption of customized operating modes, reducing economies of scale. For
example, the Philippines, Vietnam and Cambodia are still cash-first markets which
require express providers to offer additional services such as COD.
• Capital. New entrants require significant capital to build up adequate network coverage
in a region and contracted volume that are vital to the survival in the early stage.
Additionally, most markets in the region have underdeveloped transport infrastructure as
well as location identification. Incumbents have invested significant resources to
overcome these limitations by hiring local experts with knowledge of the region and
building in-house databases to identify addresses.
• Licensing and regulatory. Several markets in SEA have unique licensing requirements
to operate express delivery services. Within these markets the licensing structure requires
a separate permit to operate within each region, further adding complexity to entering into
and scaling in this market. Certain operators in the region are state-owned, creating
conflicts of interest.
– 109 –
INDUSTRY OVERVIEW
OVERVIEW OF CHINA EXPRESS DELIVERY MARKET
China economy
China is one of the largest and fastest-growing economies in the world. The Chinese economy
has experienced extraordinary growth over the past five years, with a nominal GDP increasing
from US$13,841.8 billion in 2018 to US$17,994.9 billion in 2022, representing a CAGR of
6.8%. China’s nominal GDP is expected to further grow at a CAGR of 5.6% over the next five
years. China’s GDP per capita increased from US$9,849.0 in 2018 to US$12,746.1 in 2022, and
is expected to increase further to US$16,961.4 by 2027.
E-commerce as the main driver of China express delivery market
China has the largest e-commerce retail market in the world in terms of e-commerce retail
value, amounting to US$1,777.1 billion in 2022, which represented over 40% of the US$3.9
trillion global market in 2022. The development of e-commerce in China has reshaped and
promoted the development of the logistics sector as well as the express delivery industry.
The number of e-commerce users in China increased from 610.1 million in 2018 to 934.3
million in 2022 at a CAGR of 11.2% while the e-commerce user coverage ratio in China
increased from 43.4% to 66.2% as a percentage of the total population during the same period
due to the improvement of internet infrastructure under government support alongside
continued development of mobile internet technology, social networking, online payment and
logistics in China. As a result, the total e-commerce retail market in China, measured by
transaction value, has grown from US$1,058.5 billion in 2018 to US$1,777.1 billion in 2022,
representing a CAGR of 13.8%. With an increasing use of the Internet, smart devices, and
associated suite of functionalities such as electronic payment and live streaming, e-commerce
penetration is expected to further increase.
The COVID-19 pandemic has also contributed to an accelerated shift from offline consumption
to online, advancing the development of the e-commerce industry, and thus supporting the
development of the express delivery industry. Consumers in China are expected to become
increasingly receptive to online shopping and generate larger demand for online shopping, and
the number of e-commerce users is expected to grow from 1,000.7 million in 2023 to 1,202.1
million in 2027, representing a CAGR of 4.7%. The e-commerce retail market of China is
expected to grow from US$1,997.4 billion in 2023 to US$2,957.2 billion in 2027, representing
a CAGR of 10.3%.
– 110 –
INDUSTRY OVERVIEW
Market Size of E-commerce Retail Market (by Transaction Value) and Penetration
Rate, Mainland China, 2018-2027E
U.S. Dollars Billion

%
4,000 CAGR 18-22 CAGR 23E-27E 40
Market Size 13.8% 10.3% 35.6%
34.1%
3,500 32.4% 35
30.8%
29.1% 2,957.2 30
3,000 27.2% 2,701.1
24.9% 24.5% 2,454.7
2,500 25
20.9% 2,221.8
18.6% 1,997.4
2,000 1,777.1 20
1,674.5
1,500 1,415.0 15
1,234.9
1,058.5
1,000 10
500 5
0 0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
E-commerce Penetration Rate E-commerce Retail Market
The dynamics of the e-commerce industry in China have been evolving rapidly in recent years
and social e-commerce has become the new growth engine. From 2018 to 2022, with the rapid
expansion of e-commerce user scale, a solid foundation has been placed for the development
of the social e-commerce retail market in China. Rapid growth of social e-commerce has been
witnessed alongside the development of social media platforms such as Kuaishou, WeChat and
Douyin. Leading e-commerce platforms such as Tmall, Taobao, JD and Pinduoduo have also
built up their social e-commerce and live-streaming businesses, which greatly expanded their
online product categories and improved the efficiency of traffic conversion. The social
e-commerce retail market in China increased from US$98.5 billion in 2018 to US$626.5 billion
in 2022 at a CAGR of 58.8% and is expected to reach US$1,660.4 billion in 2027 from
US$839.7 billion in 2023 at a CAGR of 18.6%. The number of social e-commerce users in
China increased from 486.4 million in 2018 to 794.2 million in 2022, representing a CAGR of
13.0%, and is expected to further grow to 1,178.1 million in 2027 from 879.2 million in 2023
at a CAGR of 7.6%. Additionally, social e-commerce is expected to increase from 42.0% in
2023 to 56.1% in 2027, as a percentage of the e-commerce retail market in China. Driven by
the fast growth of the social e-commerce sector, the express delivery market in China is
expected to maintain sustainable growth in the forecasted period.
Historical trends and opportunities in China express delivery market
China is the largest express delivery market in the world in terms of parcel volume in 2022.
The China express market has been growing at a CAGR of 21.5% over the past five years (from
2018 to 2022) in terms of parcel volume, and the market is expected to further grow at a CAGR
of 10.7% from 2023 to 2027. The China express market is expected to reach 188.0 billion
parcels by 2027 from 125.1 billion parcels in 2023.
– 111 –
INDUSTRY OVERVIEW
Market Size of Express Delivery Market (by Parcel Volume),

Mainland China, 2018-2027E
Billion Units
200
Market Size 21.5% 10.7% 188.0
172.0
156.0
150
140.2
125.1
108.3 110.6
100
83.4
63.5
50.7
50
0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
Source: State Post Bureau, Frost & Sullivan
Drivers and opportunities for China express delivery market
Multiple drivers are expected to create additional opportunities in the China express delivery
industry. These include:
• Robust demand from e-commerce. The rapid development of e-commerce business is

the most crucial driver of the express delivery industry, as the majority of express
delivery parcel demand comes from e-commerce.
• Favorable government policies. To promote the healthy and orderly development of

express delivery industry and create a sound business environment, the government has
issued policies and reforms to modernize the express delivery industry, encourage
innovation, enhance branding of express delivery and logistics companies, and stabilize
express delivery pricing.
• Advanced technology applications. Successful applications of innovative technologies

in the express delivery industry enable express delivery operators to further improve
operational efficiency, shorten delivery times and optimize the logistics supply chain.
• Improving infrastructure and facilities. Improvements in national transportation

infrastructure lay out a solid foundation for the express delivery industry. Additionally,
the focus on new infrastructure and new energy vehicles in the coming years will further
enable the express delivery industry to achieve technological innovation and improve
service.
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INDUSTRY OVERVIEW
• Emerging cross-border e-commerce and express delivery demand. Cross-border

e-commerce is another growth opportunity for the express delivery industry in mainland
China. As mentioned in 14th Five Year plan, the government encourages cross-border
e-commerce development, expanding China’s established successful e-commerce and
logistics experiences overseas, bridging domestic producers and suppliers directly with
overseas consumers and selling domestically manufactured goods to them. Revenue of
cross-border small parcels is anticipated to grow at a CAGR of 21.6% from 2023 to 2027,
reaching approximately US$92.0 billion by 2027.
Competitive landscape
In 2022, the express delivery industry in China was relatively concentrated, with the top five
players accounting for approximately 76.6% of the total business volume. In March 2020, J&T
Global tapped into the China express market.
Top Express Delivery Operators (by Parcel Volume), China, 2022
Parcel Volume
Rank Express Delivery Operators Business Model Market Share
(Billions)
1 Company E Network Partner Model 24.4 22.1%
2 Company F Network Partner Model 17.6 15.9%
3 Company G Network Partner Model 17.5 15.8%
4 Company H Network Partner Model 12.9 11.7%
5 Company I Direct Operation Model 12.3 11.1%
Regional Sponsor Model

6 J&T Express 12.0 10.9%
(supported by network partner model)
7 Company J Direct Operation Model 11.1 10.0%
Source: Company Reports, Frost & Sullivan
– 113 –
INDUSTRY OVERVIEW
Service Quality
Complaint rate, complaint handling composite index and 72 hours on-time rate disclosed by the
State Post Bureau of the PRC are three metrics that can represent the service quality of the
express delivery operators. Complaint rate refers to the units of parcels for which the State Post
Bureau of the PRC receive complaints from customers related to specific express delivery
operators per million units of parcels that they have delivered. The evaluation parameters of
complaint handling composite index include one-time settlement rate, overdue rate, non-
standard response rate of enterprise, false response rate of enterprise, and job satisfaction rate.
72 hours on-time rate refers to the percentage of parcels delivered within 72 hours over total
sample domestic cross-city parcels.
The two comparison graphs set below are based on the available period data in 2023. For
average complaint rate, the Company ranked as the first among major players in China in the
first quarter of 2023 per available data, significantly better than the industry average level
during the period. For complaint handling composite Index, the Company ranked as the first
among major players in China in the first quarter of 2023 per available data. In addition, the
State Post Bureau of the PRC arranged a survey regarding the on-time rates of major express
delivery operators in China in the first quarter of 2023. The industry average 72 hours on-time
rate is 75.39%, and the leading three players include Company J, Company E, and the
Company as disclosed by the State Post Bureau of the PRC.
Average Complaint Rate (1) of Top Express Delivery Operators, China, 2023Q1
18.8
Industry Average: 10.3
4.7
3.8
3.2
2.0
0.8 1.0
J&T Express Company E Company F Company H Company G Company J Company I
Note:
(1) Only first quarter statistics data is available for 2023.
Source: State Post Bureau of the PRC, Frost & Sullivan
– 114 –
INDUSTRY OVERVIEW
Complaint Handling Composite Index (1) of

Top Express Delivery Operators, China, 2023Q1
99.95 99.82
99.00
97.92
97.09 96.70 Industry Average: 96.45
86.14
vertical
axis starting
J&T Express Company E Company F Company H Company G Company J Company I from 80
Note:
(1) Only first quarter statistics data is available for 2023.
Source: State Post Bureau of the PRC, Frost & Sullivan
Barriers to entry
New entrants into the China express delivery market face multiple challenges that are
increasing as the industry matures. These challenges are as follows:
• Capital. Fixed assets such as sorting centers and transportation vehicles, the basis for
express delivery operators to achieve economies of scale, require heavy capital
expenditures at early stages of market entry and continual investment as to expand
capacity. Most new entrants lack stable operating cash flow while they face the
substantial capital demand for capacity expansion, which creates difficulties in capital
management and market penetration.
• Network. The express industry has experienced a period of rapid growth. As the industry
competition intensifies, express delivery operations become less attractive to potential
entrants, indirectly contributing to a rise in the cost of network expansion. Most leading
express enterprises have nationwide logistics networks and continually consolidate their
infrastructure in order to maintain competitiveness. New entrants are unable to compete
in terms of network coverage with more established enterprises in the short term.
• Economies of scale. Economies of scale have become the key to profitability in the
express delivery industry. Economies of scale enhance express delivery operators’ ability
to control costs. The costs of express delivery mainly consist of waybill cost,
transportation cost, sorting center cost and delivery cost. Currently the line-haul
transportation and transit costs are the main focal points in cost reduction for most
operators. Most leading express delivery operators are ahead of the industry in line-haul
transportation and transit costs due to their large volumes, number of sorting centers and
line-haul vehicles, which reduce the unit cost of a parcel and also enhance the
competitiveness of service. New entrants without adequate scale face challenges in
effectively reducing line-haul transportation and transit costs, which results in higher unit
cost.
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INDUSTRY OVERVIEW
• Technology. The design and application of technologies tailored for the challenges of
each geography are key for express delivery operators to offer competitive services to
cater to diverse and personalized customer needs while maintaining high service quality.
Going forward, intelligent automation will become the core competitiveness of express
delivery operators as it can significantly improve the parcel sorting efficiency and
customer service quality of express delivery operators, and effectively reduce the labor
and operation costs.
OVERVIEW OF NEW MARKETS
New Markets economies
Total nominal GDP of the New Markets including Saudi Arabia, UAE, Mexico, Brazil, and
Egypt was US$5,302.8 billion in 2022. Nominal GDP of the New Markets is expected to reach
US$7,217.9 billion in 2027, representing a CAGR of 6.3% from 2023 to 2027. Egypt, as a
developing country, is expected to become the fastest-growing economy among the New
Markets, growing at a CAGR of 16.0% during the same period. In addition, GDP per capita in
the New Markets is expected to reach US$13,785.1 in 2027, which is significantly higher than
expected GDP per capita of US$8,143.1 in SEA in 2027, representing a CAGR of 5.1% from
2023 to 2027.
E-commerce retail markets in New Markets
Retail markets in Saudi Arabia, UAE, Mexico, Brazil, and Egypt have been on the verge of a
pivotal transition as consumers shift to online shopping. In the past years, these countries have
all experienced significant growth in their e-commerce retail markets. The following chart sets
forth a breakdown of the e-commerce retail markets in these countries for the period indicated:
Market Size of E-commerce Retail Market (by Transaction Value),

New Markets, 2018-2027E
USD Billion
300300

250250
243.1
203.9
200200
167.5
150150
136.3
107.6
100100
85.7
66.1
38.0 47.5
5050
32.4
0 0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
Brazil Mexico Egypt UAE Saudi Arabia
– 116 –
INDUSTRY OVERVIEW
Each of Saudi Arabia, UAE, Mexico, Brazil, and Egypt is an important economy in their
respective regions. The e-commerce markets in these countries have been growing rapidly and
are expected to maintain the momentum due to fast developing internet infrastructure, growing
national economies and evolving consumer behavior. E-commerce penetration rates have been
growing in recent years. The e-commerce retail markets in Saudi Arabia, UAE, Mexico, Brazil,
and Egypt have collectively grown from US$32.4 billion in 2018 to US$85.7 billion in 2022
in terms of transaction value, representing a CAGR of 27.5%, and are expected to further grow
at a CAGR of 22.6% from 2023 to 2027 and reach US$243.1 billion in 2027. The overall
penetration rate for e-commerce of the New Markets is expected to increase from 14.6% in
2023 to 27.5% in 2027.
Strong development of express delivery markets in these countries presents significant

opportunities. From 2018 to 2022, the express delivery markets in terms of parcel volume in
Saudi Arabia, UAE, Mexico, Brazil, and Egypt grew at a CAGR of 20.2%, 18.5%, 22.3%,
18.7% and 12.7%, respectively. The express delivery markets in Saudi Arabia, UAE, Mexico,
Brazil, and Egypt are expected to grow further from 2023 to 2027 at a CAGR of 20.6%, 21.0%,
18.7%, 16.1% and 15.3%, respectively. The growth is expected to benefit from a range of key
trends including the development of the economy, infrastructure and e-commerce retail
markets, as well as the emergence of cross-border logistics with supportive government
policies, in these countries. Due to the early stage of development, express delivery service
pricing in the New Markets are relatively higher compared to more developed markets.
Market Size Express Delivery Market (by Parcel Volume),

New Markets, 2018-2027E
Million Units
8,000 CAGR 18-22 CAGR 23E-27E
Market Size 19.5% 17.6% 7,137.7
7,000
6,158.5
6,000
5,257.8
5,000
4,454.6
4,000 3,733.5
3,095.8
3,000
2,534.5
2,053.0
2,000 1,732.0
1,516.8
1,000
0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
Brazil Mexico Egypt UAE Saudi Arabia
Competitive landscape and entry barriers of New Markets
The express delivery industry in the New Markets is relatively fragmented. Competition
remains split between local players and cross-regional players such as FedEx, UPS, DHL and
Aramex Express. Revenue per parcel remains relatively high in these markets as compared to
revenue per parcel in SEA or China due to fewer competition. Top local players include
Braspress, TNT Express and RTE Rodonaves in Brazil, Estafeta Express in Mexico, Egypt
Express in Egypt, Emirates Post in UAE and Saudi Post in Saudi Arabia.
– 117 –
INDUSTRY OVERVIEW
Major barriers to entry in the New Markets include:
• Customers. Large-scale express delivery operators such as DHL and FedEx have
established strong and sustainable partnerships with leading e-commerce platforms in the
New Markets, and some e-commerce platforms have built self-operated delivery centers.
For example, the Mexico express delivery market is dominated by Estafeta and
international express delivery operators such as FedEx, UPS, and DHL. With relatively
mature logistics centers, distribution networks and other infrastructure, large-scale
express delivery operators have established strong reputations and relationships with their
customers. It is difficult for new entrants to establish close partnerships with e-commerce
platforms in a short timeframe.
• Capital. Sorting centers, logistics infrastructure, and transportation vehicles are the
foundations for express delivery operators to ensure the sustainable developments of their
business, which require significant capital investments in the early development stages.
Leading operators can continue to invest in and explore business opportunities in New
Markets at limited profit margin to establish competitive advantages.
• Technology. With the rapid development of big data, artificial intelligence and new
infrastructure such as 5G and IoT, most leading express operators are now improving their
technological strengths in providing customized services and improving efficiency, which
help meet diverse and personalized customer needs and enhance service differentiation to
improve business competitiveness. In the future, intelligence and automation will become
core competencies for express delivery operators, but the application of technology in the
business requires operators to accurately capture and understand consumer needs in
different scenarios. The leading players have acquired accurate and relevant data through
years of experience in the industry, which will be a challenge for new entrants.
• Network. The logistics and distribution networks in the New Markets are scattered.
Companies are required to build sufficient logistics infrastructure to cover the rural areas
in the market. However, as price competition intensifies, express delivery operators are
becoming less attractive to potential entrants, while the cost of network expansion is
gradually rising. Even if new entrants can successfully establish and operate their
networks, their coverage will not be able to compete with most of the established players
in the short term.
OVERVIEW OF CROSS-BORDER LOGISTICS MARKET
China’s import and export markets
China, one of the major economies in the world, plays a vital role in global trade. Taking
advantage of domestic scaled industry clusters and abundant resources, China is supplying the
world with a great amount of goods. For both export and import goods value, China accounted
for more than 10% in global trade, with CAGR of around 9.5% and 6.5% respectively from
2018 to 2022. Frequent and significant trade between China and the world create great demand
for cross-border logistics services, and in the forecast period, it will remain as the fundamental
driver for the cross-border logistics service industry.
– 118 –
INDUSTRY OVERVIEW
Cross-border e-commerce retail market
China is the world’s largest exporter in terms of merchandise trade value in 2022, and China’s
cross-border e-commerce retail business has competitive advantages in terms of policies
environment, supply chains infrastructure, sources of supply and so on. Chinese manufacturers
and merchants are shifting from OEM business models to direct sales via international
e-commerce platforms such as Amazon and Ebay, or independent cross-border e-commerce
platforms such as SHEIN and Temu. At the same time, overseas brands and retailers are
establishing direct access to the Chinese retail market through China’s e-commerce platforms,
such as Tmall Global, Kaola and JD Global.
The market size of cross-border e-commerce retail market in China increased from US$201.0
billion in 2018 to US$442.5 billion in 2022, representing a CAGR of 21.8% from 2018 to 2022.
Driven by favorable policies toward cross-border e-commerce business, partnerships between
e-commerce platforms and overseas brands, and development of international delivery express
services, the cross-border e-commerce retail market is expected to reach US$1,101.9 billion in
2027, with a CAGR of 19.5% from 2023 to 2027.
Market Size of Cross-border E-commerce Retail Market (by Transaction Value),

Mainland China, 2018-2027E
USD Billion
1,200 1,101.9
1,000 938.1
789.2
800
655.1
600 540.3
442.5
398.7
400 308.9
201.0 233.4
200
0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
The Chinese government has been ensuring the continuity and stability of supportive policies
on the cross-border e-commerce retail market, including the promotion of the building of
international warehouses serving cross-border e-commerce and streamlining the return and
refund process for cross-border e-commerce transactions. Driven by the continuous
development of cross-border e-commerce retail market in China, cross-border logistics market
is expected to develop rapidly with the increasing service demands.
– 119 –
INDUSTRY OVERVIEW
Market Size of Cross-border E-commerce Retail Market (by Transaction Value),

USD Billion
160 155.1
140
127.8
120
103.5
100
82.5
80
64.9
60 49.7
40 38.8
25.6
20.1
20 12.8
0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E
Global cross-border e-commerce retail players such as Amazon, eBay, Alibaba and JD have
been continuously investing into cross-border sector in Southeast Asia, the cross-border
e-commerce retail market is expected to reach US$155.1 billion in 2027 from US$64.9 billion
in 2023, with a CAGR of 24.3%. Driven by the rapid development of e-commerce retail
market, construction of international delivery service in Southeast Asia and continuous
development of Free Trade Area between SEA and China, the cross-border e-commerce retail
market (in terms of transaction value) has increased from US$12.8 billion in 2018 to US$49.7
billion in 2022, representing a CAGR of 40.4% during the period, and is expected to become
the future growing point of overall e-commerce retail market in the Southeast Asia.
Cross-border logistics market
The broader cross-border logistics markets in China and SEA have also seen significant growth
due to the rapid development of cross-border e-commerce and China’s central role as an
importer and exporter in the region. The business models of most market players in the
cross-border logistics market fall into four categories: (i) cross-border freight forwarding
service, (ii) cross-border standard express, (iii) cross-border small parcels, and (iv)
international warehousing solutions.
• Cross-border freight forwarding service. Cross-border freight forwarding services can

be rendered through air, sea and rail freight forwarding. In addition to transport services,
freight forwarding service providers also provide customs declaration and custom
clearance services.
• Cross-border standard express. Cross-border Standard Express is a high-quality

international express service typically provided by a single service provider to meet
customers’ needs for sending urgent items, mainly for business purposes. Compared with
cross-border small parcels, this service is typically more expensive and faster.
• Cross-border small parcels. Cross-border small parcels is currently the mainstream

logistics solution for cross-border e-commerce item deliveries and involves multiple
service providers partnering to serve consumers and business entities involved in
cross-border e-commerce transactions. Compared with cross-border standard express, this
service is more economical.
– 120 –
INDUSTRY OVERVIEW
• International warehousing solutions. Primarily serves e-commerce businesses,

especially for bulky items. After consumers make orders online, items will be sent out
from a warehouse located in the same country. Warehousing services include safekeeping
and storage, unloading and loading, inventory, packaging and disposal services.
Cross-border logistics involves complex processes with multiple parties such as local express
delivery service providers, customs declaration and clearance service providers, freight
forwarders and warehousing service providers. In order to ensure timeliness and delivery
accuracy, the industry has been trending towards integration of the cross-border logistics
supply chain. Companies with the capability to integrate the resources in the supply chain can
streamline cross-border logistics services and improve operational efficiency and service
quality.
Comparison of Different Business Models in Cross-Border Logistics Market
Domestic Shipping International Shipping Overseas Shipping

1
Line Haul
Cross-Border
Domestic Shipping Overseas
Freight
Forwarding Clearance Clearance
Service
2
Merchants Pickup, Domestic Line Haul Overseas Transportation, Last-Mile Customers
Handling and Sorting Domestic Shipping Overseas Warehousing Deliveryy
International Fill out request Clearance Clearance
Warehousing
Solution
Instruct to dispatch parcel
from overseas warehouse directly
Place orders online
3
Merchants Pickup, Domestic Line Haul Transportation, Last-Mile Customers
Cross-Border
Handling and Sorting Domestic Shipping Overseas Delivery
Small Parcels
Fill out request Clearance Clearance
4
Cross-Border
Standard
Express Place orders online
Benefiting from the robust growth in cross-border e-commerce, China’s cross-border logistics
market witnessed growth of 43.3%, from US$127.7 billion in 2018 to US$538.4 billion in
2022. In 2022, cross-border logistics demonstrated a decline. Going forward, the market is
gradually returning to normalcy, and driven by growing international trade, the cross-border
logistic market is expected to reach US$411.4 billion in 2027 from US$260.9 billion in 2023,
representing a CAGR of 12.1%.
Key growth drivers for cross-border logistics services
The rapid development of cross-border e-commerce has boosted consumer and business
demand for cross-border logistics services. The cross-border logistics industry is primarily
influenced by the factors below:
• Development of cross-border e-commerce. The rapid development of cross-border

e-commerce business is an important driver of cross-border logistics. Economic growth,
improvements in quality of life, increase in consumer spending, rapid development of
telecom services and internet quality, as well as convenience brought by emerging
e-commerce platforms have contributed to increasing demand from local residents for
goods and services in the global market. For instance, cross-border e-commerce platforms
such as Temu have accelerated their business expansion and set up their footprints in
North America, Brazil, Australia and Europe within one year, providing local residents
with more shopping options and products to choose from.
– 121 –
INDUSTRY OVERVIEW
• Favorable government policies. In addition to robust economic growth, cross-border

e-commerce business has been and is expected to further benefit from continued
government support and favorable governmental policies in SEA, China, and the New
Markets, such as the construction of Free Trade Area between SEA and China.
• Development of cross-border logistics infrastructure. With the rapid development of

local economies and increasing scale of international trade, cross-border logistics
infrastructure and facilities have also received local government attention is developing
at a fast pace. The Chinese government is committed to innovate and upgrade the global
supply chain, strengthening overseas warehouses and overseas logistics centers.
• Advanced technology driving supply chain efficiency. Cross-border logistics involves

complex procedures. The application of advanced technology has greatly improved the
service capability, timeliness and safety of cross-border logistics. Advanced technologies
such as IoT, big data, AI and cloud computing can be utilized to support the operation of
logistics systems.
Barriers to entry
New entrants in the cross-border express delivery market face significant competition from
global players and associated entry barriers. These competitive factors include:
• Supply chain coordination. The entire cross-border logistics supply chain comprises
multiple components such as parcel pickup, cross-border line-haul transportation,
customs declaration and clearance, international freight, onshore and offshore
warehousing and last-mile delivery, each of which requires certain expertise, knowledge
and business licenses. As such, typically a large number of specialized agents and
suppliers are involved in the process and complexity arises in the coordination among
various parties. The capabilities to establish and maintain sound business relationships
with business partners and to manage the complicated supply chain is crucial to ensure
stability of service and timeliness of delivery.
• Technology capability. Due to the complicated and multiple procedures involved

alongside the supply chain, it is essential for cross-border logistics players to accumulate
modern information technology and application capabilities. Companies with advanced
logistics information systems and proprietary and integrated technology platforms are
better able to provide superior services, improve customer satisfaction and build customer
trust.
• Infrastructure and facilities. Cross-border logistics is a capital intensive business that

requires investment in logistics network, facilities and manpower. Self-built and
self-owned logistics facilities enable the connection in between various business partners
along the supply chain and smooths the entire cross-border logistics process. The industry
is short of infrastructure and facilities, especially when faced with the COVID-19
pandemic. Companies that have invested in self-owned resources have greater advantages
than new participants.
• Qualification to carry out cross-border logistics. Certain qualifications are required to

conduct cross-border logistics businesses. Government authorities typically would
require cross-border logistics companies to register and obtain related license to operate.
Certain processes within the cross-border logistics supply chain require the service
provider to either be a postal enterprise or an express operator that has completed the
registration procedures with customs for cross-border items declaration.
– 122 –
HISTORY AND CORPORATE STRUCTURE
OVERVIEW
The Company was incorporated in the Cayman Islands on October 24, 2019 as an exempted
company with limited liability, and is the holding company of the Group with businesses
conducted through its subsidiaries and Consolidated Affiliated Entities controlled by the
Company via the Contractual Arrangements. The Group is a global logistics service provider.
The Group was founded by Mr. Li, the Chairman of the Board, executive Director and Chief
Executive Officer. The development history of the Group can be traced back to August 2015
when Mr. Li founded the Group in Indonesia. Under the leadership of Mr. Li, the Group has
expanded into other Southeast Asian countries, including Vietnam, Malaysia, the Philippines,
Thailand, Cambodia and Singapore, and became the number one express delivery operator in
Southeast Asia by parcel volume in 2022. We expanded into China in 2020. The Group is also
the first Asian express delivery operator of scale to have expanded into Saudi Arabia, UAE,
Mexico, Brazil and Egypt according to Frost & Sullivan. The Group also engages in
cross-border logistics services, which now include freight forwarding, small parcels and
BUSINESS MILESTONES
The following is a summary of our key business development milestones:
Year Event
2015 The Group was founded in August 2015 in Indonesia
2018 We expanded our business into Vietnam and Malaysia
2019 We expanded our business into the Philippines, Thailand and Cambodia
2020 We expanded our business into Singapore and China
2022 We expanded our business into Saudi Arabia, UAE, Mexico, Brazil and Egypt
OUR MAJOR SUBSIDIARIES AND OPERATING ENTITIES
Due to our business model, we have a large number of subsidiaries across multiple
jurisdictions. The following entities are of strategical importance to us or have made material
contributions to our results of operations during the Track Record Period:
Principal business Date and jurisdiction

Name of company activities of establishment
PT. Global Jet Express Our primary operating entity May 21, 2015, Indonesia (1)
in Indonesia operated via
contractual arrangements and
primarily engages in express
delivery services
Note: The date May 21, 2015 refers to the date when PT. Global Jet Express obtained its legal entity status from the
Ministry of Law and Human Rights of the Republic of Indonesia.
– 123 –

Thuan Phong Express Our primary operating entity January 13, 2016, Vietnam
Company Limited in Vietnam and primarily
engages in express delivery
services
J&T Express (Malaysia) Our primary operating entity January 10, 2018, Malaysia
Sdn. Bhd in Malaysia and primarily
services
PH GLOBAL JET Our primary operating entity September 14, 2018,

EXPRESS Inc., doing in the Philippines and the Philippines
business under the name and primarily engages in express
style of J&T Express delivery services
Global Jet Express Our primary operating entity August 17, 2018, Thailand
(Thailand) Co., Ltd. in Thailand and primarily
services
J&T Express China A consolidated affiliated September 29, 2007, PRC

(極兔速遞有限公司) entity of our Company and a
holding company of certain
PRC subsidiaries that
primarily engages in courier
and logistics services
J&T International Logistics A subsidiary of our January 10, 2018, PRC

China Company and a holding
(極兔國際物流有限公司) company of certain PRC
subsidiaries that primarily
engage in cross-border
delivery services
J&T Express (Guangzhou) A consolidated affiliated October 18, 2019, PRC

Supply Chain Co., Ltd. entity of our Company and
(廣州極兔供應鏈有限公司) primarily engages in courier
services
J&T Express (Jinhua) A consolidated affiliated October 28, 2019, PRC

(金華極兔供應鏈有限公司) primarily engages in courier
services
J&T Express (Shandong) A consolidated affiliated October 31, 2019, PRC

(山東極兔供應鏈有限公司) primarily engages in courier
services
– 124 –

J&T Express (Henan) Acme A consolidated affiliated November 1, 2019, PRC

(河南極兔極致供應鏈有限公 primarily engages in courier
司) services
J&T Express (Jieyang) A consolidated affiliated November 5, 2019, PRC

Supply Chain Management entity of our Company and
Co., Ltd. primarily engages in courier
(揭陽極兔供應鏈管理有限公 services
司)
J&T Express (Fujian) Supply A consolidated affiliated November 7, 2019, PRC

Chain Management Co., Ltd. entity of our Company and
(福建極兔供應鏈管理有限公 primarily engages in courier
司) services
J&T Express (Hebei) Acme A consolidated affiliated November 13, 2019, PRC
Supply Chain Management entity of our Company and
Co., Ltd. primarily engages in courier
(河北極兔極致供應鏈管理有 services
限公司)
MAJOR SHAREHOLDING CHANGES OF OUR COMPANY AND MAJOR

SUBSIDIARIES
The Company was incorporated in the Cayman Islands on October 24, 2019 as an exempted
company with limited liability. At the time of formation, it had an authorized share capital of
US$50,000 divided into 5,000,000,000 ordinary shares with a par value of US$0.00001 each.
On May 17, 2023, our Shareholders resolved, among other things that the authorized share
capital of the Company be reclassified and re-designated as follows: (i) 3,719,302,324 Class
A Ordinary Shares of a par value of USD0.00001 each; (ii) 195,866,682 Class B Ordinary
Shares of a par value of USD0.00001 each; (iii) 74,666,665 Series Pre-A1 Preferred Shares of
a par value of USD0.00001 each; (iv) 54,266,667 Series Pre-A2 Preferred Shares of a par value
of USD0.00001 each; (v) 269,921,165 Series A Preferred Shares of a par value of USD0.00001
each; (vi) 22,462,293 Series B Preferred Shares of a par value of USD0.00001 each; (vii)
255,864,131 Series B+ Preferred Shares of a par value of USD0.00001 each; (viii) 266,173,696
Series C1 Preferred Shares of a par value of USD0.00001 each; (ix) 115,332,586 Series C2
Preferred Shares of a par value of USD0.00001 each; and (x) 26,143,791 Series D Preferred
Shares of a par value of USD0.00001 each.
Between July 15, 2017 and May 17, 2023, we conducted several rounds of pre-[REDACTED]
financing. See “– Pre-[REDACTED] Investments” in this section for subsequent shareholding
changes resulting from the Pre-[REDACTED] Investments. See also “Statutory and General
Information – 1. Further Information about our Group – 1.2 Changes in share capital of our
Company” in Appendix V to this document for details of changes in the share capital of our
Company during the two years immediately preceding the date of this document.
– 125 –
For Shareholding changes of our major subsidiaries, see “Statutory and General Information –
1. Further Information about our Group – 1.3 Changes in the share capital of our major
subsidiaries and operating entities” in Appendix V to this document for details of changes in
the share capital of our major subsidiaries and operating entities during the two years
immediately preceding the date of this document.
We have entered into shareholder agreements with investors of our subsidiaries Jet Global
Express Limited (“Jet Global”), our holding company of operating entities in New Markets
and JNT Express KSA LLC (“JNT KSA”), our operating entity for Saudi operations. For
details of the shareholder agreements of Jet Global and JNT KSA, see note five to “Corporate
structure before the [REDACTED]” in this section for further details.
MAJOR ACQUISITIONS, DISPOSALS AND MERGERS
Acquisition of SEA Entities
In June 2021, we acquired majority equity interest of 13 operating entities established by our
Thai regional sponsors (the “Thai entities”), who are all independent third parties. Similarly,
in August 2021, we acquired equity interest in 25 operating entities established by our
Indonesian regional sponsors (the “Indonesian entities”, and together with the Thai entities,
the “SEA entities”). The consideration for the acquisition of the SEA entities was settled by
the Company issuing approximately 449.77 million new Shares. For more information
regarding our acquisition of the SEA entities, see Notes 36 and 37 to the Accountant’s Report
in Appendix I to this document.
The acquisition of the SEA entities has enabled the Company to achieve synergies under our
regional sponsor business model and further incentivize these regional sponsors to share the
Company’s vision of long-term growth and value proposition. The consideration for the
acquisition was determined after arm’s length negotiation among the parties, taking into
account the SEA entities’ business operations and assets. The Directors confirm that the
acquisition of the SEA entities was properly and legally completed and all applicable requisite
regulatory approvals have been obtained.
Acquisition of BEST Express China
On October 29, 2021, the Group entered into an agreement with BEST Inc., Hangzhou BEST
Network Technologies Co., Ltd. (“Hangzhou BEST”, together with its subsidiaries, “BEST
Express China”), Zhejiang BEST Technology Co., Ltd., BEST Logistics Technologies (China)
Co., Ltd. (collectively, “BEST”), who are all independent third parties, to acquire BEST
Express China at an enterprise value of approximately RMB6.8 billion with a cash
consideration of US$715.5 million paid by our Group in 2021. The acquisition was completed
on December 8, 2021. For more information regarding the acquisition of BEST Express China,
see Note 38 to the Accountant’s Report in Appendix I to this document.
The acquisition of BEST Express China has enabled our existing logistics network to expand
further in China. We believe the acquisition of BEST Express China demonstrates our
capability to successfully execute large scale acquisitions in a short timeframe. The
consideration for the acquisition was determined after arms’ length negotiations among the
parties, taking into account BEST Express China’s business operations in China, potential
significant synergies and opportunities for our Group. The Directors confirm that the
acquisition of BEST Express China has been properly and legally completed from PRC
perspective, with all applicable requisite regulatory approvals obtained.
– 126 –
Acquisition of Fengwang Information
On May 12, 2023, the Group entered into a share transfer agreement with Shenzhen Fengwang
Holdings Company Limited (深圳市豐網控股有限公司) (“Fengwang Holdings”), a subsidiary
of S.F. Holding Co., Ltd. (順豐控股股份有限公司) (stock code: 002352.SZ), to acquire the
entire equity interest of Fengwang Holdings’ wholly-owned subsidiary, Shenzhen Fengwang
Information Technology Company Limited (深圳市豐網信息技術有限公司) (“Fengwang
Information”), at a total consideration of RMB1,183 million. The acquisition is subject to
customary closing conditions.
Fengwang Information is the holding company of Shenzhen Fengwang Express Co., Ltd. (深
圳豐網速運有限公司) (“Fengwang Express”). Fengwang Information mainly provides express
delivery services to e-commerce customers. The Group believes that Fengwang Information is
complementary to its business, and that the acquisition of Fengwang Information will enhance
the integrated service capabilities of the Group, further increase the Group’s competitive
advantages in the e-commerce delivery sector and contribute to the high-quality development
of the industry in China. The consideration for the acquisition was determined after arm’s
length negotiations among the parties, taking into consideration Fengwang Information’s
business operations and the capital markets environment.
RECLASSIFICATION, RE-DESIGNATION AND SHARE SUBDIVISION OF OUR

SHARES
On [●] 2023, our Shareholders [resolved], among other things, subject to the [REDACTED]
becoming unconditional, that (i) 195,866,682 class B ordinary shares of a par value of
US$0.00001 each held by Jumping Summit Limited be reclassified and redesignated into class
A shares of a par value of US$0.00001 each and each such class A share of a par value of
US$0.00001 each be subdivided into five Class A Shares of a par value of US$0.000002 each;
(ii) all of the issued and unissued class A ordinary shares of a par value of US$0.00001 each
and Pre-[REDACTED] Preferred Shares of a par value of US$0.00001 each of the Company
be reclassified and redesignated into class B shares of a par value of US$0.00001 each and each
such issued and unissued class B shares of a par value of US$0.00001 each be subdivided into
five Class B Shares of a par value of US$0.000002 each.
As a consequence of the Reclassification, Redesignation and Share Subdivision, immediately

prior to the completion of the [REDACTED], the authorized share capital of the Company
shall be US$50,000 divided into (i) 979,333,410 Class A Shares with a par value of
US$0.000002 each and (ii) 24,020,666,590 Class B Shares with a par value of US$0.000002
each, and among which the issued share capital shall be US$16,971.23167 divided into (i)
979,333,410 Class A Shares with a par value of US$0.000002 each and (ii) 7,506,282,425 Class
B Shares with a par value of US$0.000002 each.
HISTORICAL AND CURRENT PRE-[REDACTED] SHARE INCENTIVE PLANS
Previously, the Company adopted an employee share incentive plan that was initially approved
and further amended by the Shareholders on December 30, 2020 and February 26, 2022,
respectively. All share awards under the employee share incentive plan have been granted, fully
vested and issued to the Company’s shareholding platforms, namely Confortune Holding
Limited, Colormin Holding Limited, Supertu Holding Limited, Cotron Holding Limited and
Woncher Holding Limited, and there are no outstanding shares under this plan.
In order to align the interests of the Company’s network partners and regional sponsors with
those of the Company’s shareholders, the Network Partner Equity Incentive Plan was initially
approved by the Shareholders on February 26, 2022, and further amended by the Board on May
31, 2023. No additional share awards will be granted under the Network Partner Equity
– 127 –
Incentive Plan upon [REDACTED]. For further information, a summary of the principal terms
of the Network Partner Equity Incentive Plan is set out in “Statutory and General Information
– 4. Pre-[REDACTED] Share Incentive Plan – Network Partner Equity Incentive Plan” in
Appendix V to this document.
ISSUANCE OF FOUNDER AWARD SHARES
In recognition of Mr. Li’s continuous contributions to the Company and to ensure further
alignment of Mr. Li’s interests with those of the Company and its shareholders, the
Shareholders of the Company unanimously agreed to issue 24,557,934 class B ordinary shares
at par value to Jumping Summit Limited (the “Founder Award Shares Issuance”) upon the
completion of the Series D financing. The Founder Award Shares Issuance was completed on
May 17, 2023. Such Class B shares will be redesignated to Class A Shares following the
Reclassification, Redesignation and Share Subdivision. In connection with the Founder Award
Shares Issuance, Mr. Li undertakes to serve as the Chairman of the Board, or as the Chief
Executive Officer, or such other position equivalent to the Chief Executive Officer (the
“Executive Positions”) for a consecutive period of at least four years (the “Restricted
Period”) commencing on the [REDACTED]. Mr. Li undertakes to proportionately relinquish
the Founder Award Shares if he ceases to serve in any and all of the Executive Positions within
the four years period commencing on the [REDACTED]. If Mr. Li no longer serves in any and
all Executive Positions during the Restricted Period under certain agreed circumstances
(including (i) the Founder voluntarily resigns or otherwise ceases to serve in any or all
Executive Positions at his own election; (ii) the Company terminates Mr. Li from any or all
Executive Positions for cause; (iii) the Company and Mr. Li otherwise mutually agree to
terminate the Founder’s employment or services in any or all Executive Positions; or (iv) a
combination of any of (i) to (iii)), subject to any mandatory lock-up requirements under
applicable laws and regulations, the Company shall automatically be entitled to use any lawful
means to procure or otherwise obtain a certain percentage of the Founder Award Shares at par
value based on the year when the Founder ceases to serve in any and all Executive Positions,
and Mr. Li undertakes to relinquish such percentage of Founder Award Shares at par value by
way of any lawful means.
Upon completion of the Series D financing and the Founder Award Shares Issuance, Mr. Li,
though Jumping Summit Limited, holds approximately 11.54% of the total issued and
outstanding shares of the Company and is entitled to 72.29% of the total voting power of the
Company’s issued shares.
CAPITALIZATION OF THE COMPANY
The following table sets out our shareholding structure as of the date of this document and
immediately upon the completion of the [REDACTED], assuming the [REDACTED] is not
exercised.
Aggregate number
Aggregate number Aggregate of shares of par Aggregate
of shares of par ownership value US$0.000002 ownership
value US$0.00001 percentage as of each upon the percentage upon the
each as of the date the date of this completion of the completion of the
Shareholders of this document(1) document(1) [REDACTED](2) [REDACTED](2)
Jumping Summit Limited 195,866,682 11.54% [REDACTED] [REDACTED]%

Fast Creative Zone Limited 79,993,268 4.71% [REDACTED] [REDACTED]%
– 128 –
Aggregate number
Fast Rabbit Global Limited 75,993,543 4.48% [REDACTED] [REDACTED]%

Team Spirit Group Limited 74,635,182 4.40% [REDACTED] [REDACTED]%
Jaunty Global Limited 68,282,305 4.02% [REDACTED] [REDACTED]%
Lead Sky Capital Limited 68,003,712 4.01% [REDACTED] [REDACTED]%
Joyous Sound Limited 65,939,639 3.89% [REDACTED] [REDACTED]%
Long Origin Limited 65,542,414 3.86% [REDACTED] [REDACTED]%
Starlight Hero Limited 65,542,414 3.86% [REDACTED] [REDACTED]%
Grow Profit Enterprises Limited 59,708,146 3.52% [REDACTED] [REDACTED]%
Top Valley Limited 57,702,788 3.40% [REDACTED] [REDACTED]%
Constant Power Investment
Limited 55,132,038 3.25% [REDACTED] [REDACTED]%
NP Investment Platform
Limited(3) 38,000,000 2.24% [REDACTED] [REDACTED]%
Ambitious River Limited 37,546,504 2.21% [REDACTED] [REDACTED]%
D1 SPV Master Holdco I
(Hong Kong) Limited 36,581,713 2.16% [REDACTED] [REDACTED]%
JNRY III Holdings Limited 33,986,019 2.00% [REDACTED] [REDACTED]%
Easy Innovation Limited 28,676,171 1.69% [REDACTED] [REDACTED]%
SC GGF III Holdco, Ltd 27,450,070 1.62% [REDACTED] [REDACTED]%
CELESTIAL OCEAN
INVESTMENTS LIMITED 26,143,791 1.54% [REDACTED] [REDACTED]%
Deep Red Holdings Limited 26,143,791 1.54% [REDACTED] [REDACTED]%
Rhododendron Investment
Uranus Holding Limited 25,922,105 1.53% [REDACTED] [REDACTED]%
Vast Admire Limited 23,883,258 1.41% [REDACTED] [REDACTED]%
Super Explorer Investment
Limited(4) 22,700,294 1.34% [REDACTED] [REDACTED]%
Yimeter Holding Limited 22,688,541 1.34% [REDACTED] [REDACTED]%
GCM Grosvenor JT SPV, LLC 21,568,627 1.27% [REDACTED] [REDACTED]%
Joyous Tempinis Limited 20,912,399 1.23% [REDACTED] [REDACTED]%
Strict Forward Limited 20,504,349 1.21% [REDACTED] [REDACTED]%
Eternal Earn Holding Limited 19,607,843 1.16% [REDACTED] [REDACTED]%
TB RACING
RABBITS INVESTMENT
HOLDINGS L.P. 19,607,843 1.16% [REDACTED] [REDACTED]%
China Logistic Investment
Holding (12) Limited 18,808,445 1.11% [REDACTED] [REDACTED]%
Tickking Holding Limited 16,113,553 0.95% [REDACTED] [REDACTED]%
D1 SPV Jupiter (Hong Kong)
Long Shining Limited 15,849,967 0.93% [REDACTED] [REDACTED]%
Parallel Cluster Investment
Confortune Holding Limited(4) 15,301,848 0.90% [REDACTED] [REDACTED]%
LINK Delivery Investment 14,564,703 0.86% [REDACTED] [REDACTED]%
Jallion Global Limited 14,379,085 0.85% [REDACTED] [REDACTED]%
Precision World Limited 14,171,268 0.84% [REDACTED] [REDACTED]%
– 129 –
Aggregate number
Woncher Holding Limited(4) 13,453,629 0.79% [REDACTED] [REDACTED]%

Ultra Height Fund L.P. 13,223,298 0.78% [REDACTED] [REDACTED]%
AMF-9 Holdings Limited 13,071,896 0.77% [REDACTED] [REDACTED]%
Dahlia Investments Pte. Ltd 13,071,896 0.77% [REDACTED] [REDACTED]%
Vast Elegance Limited 9,682,558 0.57% [REDACTED] [REDACTED]%
Supertu Holding Limited(4) 9,336,288 0.55% [REDACTED] [REDACTED]%
SAI Growth Fund I, LLLP 9,150,326 0.54% [REDACTED] [REDACTED]%
China Logistic Investment
Holding (11) Limited 7,022,190 0.41% [REDACTED] [REDACTED]%
Hidden Hill SPV VIII 6,535,947 0.39% [REDACTED] [REDACTED]%
Blessed Tiger Limited 6,535,663 0.39% [REDACTED] [REDACTED]%
XN Origin International
ZWC JT Investment Limited 6,535,663 0.39% [REDACTED] [REDACTED]%
Colormin Holding Limited(4) 6,184,536 0.36% [REDACTED] [REDACTED]%
Portland Street Partners Limited 4,947,773 0.29% [REDACTED] [REDACTED]%
Speedy Innovation L.P. 4,947,773 0.29% [REDACTED] [REDACTED]%
Hidden Hill Investment 123 4,575,163 0.27% [REDACTED] [REDACTED]%
Cotron Holding Limited(4) 4,542,072 0.27% [REDACTED] [REDACTED]%
Square Lord Limited 2,979,201 0.18% [REDACTED] [REDACTED]%
Tranquility Ventures Limited 1,979,110 0.12% [REDACTED] [REDACTED]%
Hidden Hill Investment 112 1,480,270 0.09% [REDACTED] [REDACTED]%
Other public shareholders Nil Nil [REDACTED] [REDACTED]%
Total 1,697,123,167 100.00% [REDACTED] 100.00%
Notes:
(1) Our Company will adopt a WVR structure comprising two classes of Shares, Class A Shares and Class B
Shares. Each Class A Share shall entitle its holder to ten votes and each Class B Share shall entitle its holder
to one vote except for the Reserved Matters.
(2) Assuming the [REDACTED] is not exercised, the Reclassification, Redesignation and Share Subdivision are
completed, and not taking into account any [REDACTED] that may be subscribed for the existing
Shareholders.
(3) Shareholding platform for the Network Partner Equity Incentive Plan.
(4) Confortune Holding Limited, Colormin Holding Limited, Supertu Holding Limited, Cotron Holding Limited,
Woncher Holding Limited and Super Explorer Investment Limited are shareholding platforms for a certain
number of the Company’s current and former employees and consultants.
– 130 –
PRE-[REDACTED] INVESTMENTS
1. Series Pre-A1 Financing
On July 15, 2017, our wholly-owned subsidiary, Onwing Global Limited entered into the
initial investment agreement with our Series Pre-A1 investors pursuant to which
74,666,665 Series Pre-A1 Preferred Shares were issued to our Series Pre-A1 investors.
The cost per Series Pre-A1 Preferred Share was approximately US$1.3849 and the total
consideration was approximately US$103.41 million. The consideration was determined
based on arm’s length negotiations between our Company and the Series Pre-A1 investors
after taking into consideration the timing of the investments and the status of our business
and operating entities. The investments in and the allotment of all the Series Pre-A1
Preferred Shares were completed on March 8, 2018. The discount to the [REDACTED]
was [REDACTED]%. The discount to the [REDACTED] is calculated based on the
assumption that (i) the [REDACTED] is HK$[REDACTED] per Share, being the
mid-point of the indicative [REDACTED] range of HK$[REDACTED] to
HK$[REDACTED], and (ii) the completion of the Reclassification, Redesignation and
Share Subdivision.
2. Series Pre-A2 Financing and Share Swap
On August 20, 2018, our wholly-owned subsidiary, Onwing Global Limited entered into
the initial investment agreement with our Series Pre-A2 investors pursuant to which
54,266,667 Series Pre-A2 Preferred Shares were issued to our Series Pre-A2 investors.
The cost per Series Pre-A2 Preferred Share was approximately US$1.4749 and the total
consideration was approximately US$80.04 million. The consideration was determined
based on arm’s length negotiations between our Company and the Series Pre-A2 investors
after taking into consideration the timing of the investments and the status of our business
and operating entities. The investments in and the allotment of all the Series Pre-A2
Preferred Shares were completed on November 1, 2018. The discount to the
[REDACTED] was [REDACTED]%. The discount to the [REDACTED] is calculated
based on the assumption that (i) the [REDACTED] is HK$[REDACTED] per Share,
being the mid-point of the indicative [REDACTED] range of HK$[REDACTED] to
Share Subdivision. On October 24, 2019, we entered into a share swap agreement with
our Pre-A1 and Pre-A2 investors among others, pursuant to which their respective
shareholdings in Onwing Global Limited were swapped for shares in our Company on a
pro-rata basis.
3. Series A Financing
On May 15, 2020, we entered into the initial investment agreement with our Series A
investors pursuant to which 269,921,165 Series A Preferred Shares were issued to our
Series A investors. The cost per Series A Preferred Share was approximately US$4.3962
and the total consideration was approximately US$1.19 billion. The consideration was
determined based on arm’s length negotiations between our Company and the Series A
investors after taking into consideration the timing of the investments and the status of
our business and operating entities. The investments in and the allotment of all the Series
A Preferred Shares were completed on May 15, 2020. The discount to the [REDACTED]
was [REDACTED]%. The discount to the [REDACTED] is calculated based on the
assumption that (i) the [REDACTED] is HK$[REDACTED] per Share, being the
mid-point of the indicative [REDACTED] range of HK$[REDACTED] to
Share Subdivision.
– 131 –
4. Series B Financing
On December 10, 2020, we entered into the initial investment agreement with our Series
B investors pursuant to which 22,462,293 Series B Preferred Shares were issued to our
Series B investors. The cost per Series B Preferred Share was approximately US$4.4519
and the total consideration was approximately US$100 million. The consideration was
determined based on arm’s length negotiations between our Company and the Series B
investors after taking into consideration the timing of the investments and the status of
our business and operating entities. The investments in and the allotment of all the Series
B Preferred Shares were completed on December 30, 2020. The discount to the
[REDACTED] was [REDACTED]%. The discount to the [REDACTED] is calculated
based on the assumption that (i) the [REDACTED] is HK$[REDACTED] per Share,
being the mid-point of the indicative [REDACTED] range of HK$[REDACTED] to
Share Subdivision.
5. Series B+ Financing
On February 5, 2021, we entered into the initial investment agreement with our Series B+
investors pursuant to which 255,864,131 Series B+ Preferred Shares were issued to our
Series B+ investors. The cost per Series B+ Preferred Share was approximately
US$7.1225 and the total consideration was approximately US$1.82 billion. The
consideration was determined based on arm’s length negotiations between our Company
and the Series B+ investors after taking into consideration the timing of the investments
and the status of our business and operating entities. The investments in and the allotment
of all the Series B+ Preferred Shares were completed on February 26, 2021. The discount
to the [REDACTED] was [REDACTED]%. The discount to the [REDACTED] is
calculated based on the assumption that (i) the [REDACTED] is HK$[REDACTED] per
Share, being the mid-point of the indicative [REDACTED] range of HK$[REDACTED]
to HK$[REDACTED], and (ii) the completion of the Reclassification, Redesignation and
Share Subdivision.
6. Series C1 Financing
Between October 19, 2021 and February 25, 2022, we entered into the initial investment
agreement with our Series C1 investors pursuant to which 147,428,024 Series C1
Preferred Shares were issued to our Series C1 investors. The cost per Series C1 Preferred
Share was approximately US$14.1000 and the total consideration was approximately
US$2.08 billion. The consideration was determined based on arm’s length negotiations
between our Company and the Series C1 investors after taking into consideration the
timing of the investments and the status of our business and operating entities. The
investments in and the allotment of all the Series C1 Preferred Shares were completed on
March 21, 2022.
On May 17, 2023, the Company issued 118,745,672 Series C1 Preferred Shares to Series
C1 investors at par value of US$0.00001 per Share, see “– Pre-[REDACTED]
Investments – 9. Issue of Series C1 Preferred Shares and Series C2 Preferred Shares” in
this section.
The average cost per Series C1 Preferred Share was approximately US$7.8097, and the
discount to the [REDACTED] was [REDACTED]%. The discount to the [REDACTED]
is calculated based on the assumption that (i) the [REDACTED] is HK$[REDACTED]
per Share, being the midpoint of the indicative [REDACTED] range of
HK$[REDACTED] to HK$[REDACTED], and (ii) the completion of the
Reclassification, Redesignation and Share Subdivision.
– 132 –
7. Share Repurchase and Concurrent Series C2 Preferred Share Issuance
Between December 31, 2021 and September 30, 2022, a number of our Shareholders
entered into a series of transaction agreements with certain shareholders of Yimeter
Holding Limited and Tickking Holding Limited (the “relevant Yimi Dida
shareholders”) in order to restructure their respective shareholdings. Yimeter Holding
Limited and Tickking Holding Limited are shareholding platforms for certain
shareholders of Yimi Dida Supply Chain Group Co., Ltd. (“Yimi Dida”). Yimi Dida is
engaged in the provision of less-than-truckload transportation services in China.
As a result of the shareholding restructure, (i) the relevant Yimi Dida shareholders would
become Shareholders of the Company and became our Series C2 Preferred Shareholders
subject to our currently effective shareholders agreement and (ii) the relevant
Shareholders of the Company would indirectly acquire equity interest in Yimi Dida.
Pursuant to these arrangements, 55,528,307 Shares held by our Shareholders were
repurchased by the Company and 55,528,307 Series C2 Preferred Shares were issued to
the relevant Yimi Dida shareholders.
8. Issue of Series C1 Preferred Shares and Series C2 Preferred Shares
Concurrently with our Series D round financing, on May 17, 2023, we entered into
agreements with our Series C1 investors and our Series C2 investors, pursuant to which
we agreed to issue an aggregate of 118,745,672 Series C1 Preferred Shares and
43,082,204 Series C2 Preferred Shares at total consideration of US$1,618.27876 at par
value of US$0.00001 per Share, in return for which our Series C1 investors and Series C2
investors agreed to the waiver of or amendments to certain of their shareholder rights
under our currently effective articles of association and shareholders agreement. Such
consideration was settled in full on May 18, 2023.
9. Series D Financing
On May 12, 2023, we entered into an investment agreement with our Series D investor,
pursuant to which 26,143,791 Series D Preferred Shares were issued to our Series D
investor. The cost per Series D Preferred Shares was approximately US$7.65 and the total
consideration was approximately US$200 million.
The consideration was determined based on arm’s length negotiations between our
Company and the Series D investor after taking into consideration the timing of the
investments and the status of our business and operating entities. The investments in and
the allotment of all the Series D Preferred Shares were completed on May 18, 2023. The
discount to the [REDACTED] was [REDACTED]%. The discount to the [REDACTED]
is calculated based on the assumption that (i) the [REDACTED] is HK$[REDACTED]
per Share, being the mid-point of the indicative [REDACTED] range of
HK$[REDACTED] to HK$[REDACTED], and (ii) the completion of the
Reclassification, Redesignation and Share Subdivision.
– 133 –
10. Subscription Commitment by Existing Shareholders
Certain of our Pre-[REDACTED] Investors (“Subscription Commitment

Shareholder(s)”) have provided undertakings to the Company to invest certain amounts
to subscribe for [REDACTED] at the [REDACTED] in the [REDACTED], to the extent
permitted under the applicable laws and Listing Rules and subject to approval from the
Stock Exchange. Unless such subscription is being made pursuant to the anti-dilution
rights of the Pre-[REDACTED] Investors, the Company has the right, but not obligation,
to allocate such number of [REDACTED] to the Subscription Commitment Shareholders
as the Company determines in its absolute discretion. Each of the Subscription
Commitment Shareholders undertakes that any [REDACTED] which it subscribes for
shall be subject to a lock-up period of six months from the date on which [REDACTED]
of the Shares of the Company commences of the Stock Exchange.
We have applied for [and the Stock Exchange has granted] a waiver from strict
compliance with Rules 9.09(b) and 10.04 of the Listing Rules and consent pursuant to
paragraph 5(2) of Appendix 6 to the Listing Rules for the proposed subscription by the
Subscription Commitment Shareholders. [REDACTED].
11. Principal Terms of the Pre-[REDACTED] Investments and Pre-[REDACTED]

Investors’ Rights
Basis of determining the The consideration for the Pre-[REDACTED]

consideration paid Investments were determined based on arm’s length
negotiations between our Company and the
Pre-[REDACTED] Investors after taking into
consideration the timing of the investments and the
status of our business and operating entities.
Use of [REDACTED] from the We utilized the [REDACTED] from the

Pre-[REDACTED] Investments Pre-[REDACTED] Investments involving the issue
of Shares to the Pre-[REDACTED] Investors for the
operations of our Company and in accordance with
the business plan or budget as approved by the Board.
As of the Latest Practicable Date, approximately
78.09% of the funds raised from the
Pre-[REDACTED] Investments had been utilized.
Lock-up requirement under Certain of our Pre-[REDACTED] Investors will

Guidance Letter retain at least an aggregate of 50% of their
HKEX-GL93-18 investments at the time of [REDACTED] for a
period of at least six months following the
[REDACTED], in accordance with the Guidance
Letter HKEX-GL93-18.
– 134 –
Strategic benefits of the At the time of the Pre-[REDACTED] Investments,

Pre-[REDACTED] Investors our Directors were of the view that our Company
brought to our Company would benefit from the additional capital provided by
the Pre-[REDACTED] Investors’ investments in our
Company and their knowledge and experience. Our
Pre-[REDACTED] Investors include renowned
companies in relevant industries, which can help us
achieve business synergies, and professional strategic
investors, which can provide us with professional
advice on our Group’s development and improve our
corporate governance, financial reporting and
internal control.
Our Company is also of the view that the

Pre-[REDACTED] Investors’ investments
demonstrated their confidence in our Group’s
operations and served as an endorsement of our
Company’s performance, strengths and prospects.
Anti-dilution Rights To the extent permitted under applicable laws and

Listing Rules, each Pre-[REDACTED] Investors
may require the Company to issue [REDACTED] to
such Pre-[REDACTED] Investors (and/or any of its
affiliates) at the [REDACTED], so that the aggregate
shareholding percentage of such Pre-[REDACTED]
Investors (together with its affiliates) in the Company
immediately after the completion of the
[REDACTED] will be the same as the aggregate
shareholding percentage of such Pre-[REDACTED]
Investors (together with its Affiliates) in the
Company immediately prior to the [REDACTED].
12. Special Rights of the Pre-[REDACTED] Investors
All of our Pre-[REDACTED] Investors are currently bound by the terms of the currently
effective articles of association of the Company, which will be replaced by our Articles
effective upon the completion of the [REDACTED]. Pursuant to our Shareholders
Agreement, the Pre-[REDACTED] Investors were granted certain special rights in
relation to the Company.
The redemption rights granted to the Pre-[REDACTED] Investors under the Shareholders
Agreement have been suspended immediately prior to the first submission of the
[REDACTED] to the Stock Exchange for the purpose of the [REDACTED], and will
only be exercisable if the [REDACTED] does not take place, otherwise such redemption
rights will terminate upon the [REDACTED]. All other special rights under the
Pre-[REDACTED] Investments shall cease to be effective and be discontinued upon the
[REDACTED] in accordance with the Guidance Letter GL43-12, and the terms of the
Shareholders Agreement.
– 135 –
All Ordinary Shares held by shareholders other than Jumping Summit Limited and all of
the Pre-[REDACTED] Preferred Shares will convert into Class B Shares on a one-to-one
basis immediately following the Reclassification, Redesignation and Share Subdivision
and completion of the [REDACTED] at which time our share capital will comprise two
classes of shares, Class A Shares and Class B Shares. For further information on the rights
attached to our Class A Shares and Class B Shares, see “Share Capital.”
13. Public Float
Upon the completion of the [REDACTED] (assuming (i) the [REDACTED] is not
exercised and (ii) Reclassification, Redesignation and Share Subdivision are completed),
the shares held by certain of our Shareholders who are, or are indirectly controlled by, our
core connected persons, will not be counted towards the public float. Details of these
Shareholders and their controllers are set out below:
• Jumping Summit Limited, controlled by Mr. Li, our executive Director, holding
[REDACTED]% of the issued share capital of the Company (on a one share, one
vote basis);
• Easy Innovation Limited, controlled by Ms. Alice Yu-fen Cheng, our non-executive
Director, holding [REDACTED]% of the issued share capital of the Company (on
a one share, one vote basis); and
• Long Origin Limited, controlled by Mr. Yuan Zhang, our non-executive Director,
holding [REDACTED]% of the issued share capital of the Company (on a one
share, one vote basis).
Save as provided above, upon the completion of the [REDACTED] (assuming the
[REDACTED] is not exercised), the other shareholders will collectively hold
[REDACTED] Class B Shares or approximately [REDACTED]% of the issued share
capital of the Company (on a one share, one vote basis).
Save as disclosed above, no other Pre-[REDACTED] Investor is a core connected person

of the Company, as defined in the Listing Rules. Therefore, Class B Shares held by the
other Pre-[REDACTED] Investors will count towards the public float.
14. Information on the Pre-[REDACTED] Investors
Set our below is a description of our principal Pre-[REDACTED] Investors, being private
equity funds and corporations, and that have made meaningful investments in our
Company.
Tencent
Rhododendron Investment Limited (“Rhododendron Investment”) and Deep Red

Holdings Limited (“Deep Red”) are companies limited by shares incorporated in the
British Virgin Islands. TB Racing Rabbits Investment Holdings L.P. (“TB Racing
Rabbits”) is an exempted limited partnership registered in the Cayman Islands.
Rhododendron Investment, Deep Red and TB Racing Rabbits are all wholly owned by
Tencent Holdings Limited, a company listed on the Main Board of the Stock Exchange
(HKEX: 00700, “Tencent”). Tencent is a leading provider of Internet value-added
services in China, including communications and social networks, games, digital content,
advertising, fintech and cloud services.
– 136 –
Eternal Earn Holding Limited is an exempted company incorporated in the Cayman

Islands with limited liability and a wholly-owned subsidiary of TPP Fund II, L.P., whose
general partner is TPP GP II, Ltd, which is ultimately controlled by Tencent.
Parallel Cluster Investment Limited is an exempted company incorporated in the Cayman

Islands with limited liability and a wholly-owned subsidiary of Parallel Cluster
Investment L.P., whose general partner is Parallel Cluster GP Limited, which is ultimately
controlled by Tencent.
Boyu
Joyous Tempinis Limited is an exempted company with limited liability incorporated

under the laws of the Cayman Islands. Jaunty Global Limited and Jallion Global Limited
are BVI business companies incorporated under the laws of the British Virgin Islands.
They are directly or indirectly controlled by Boyu Capital Fund IV, L.P., an exempted
limited partnership registered under the laws of the Cayman Islands. Boyu Capital Fund
IV, L.P. is advised by Boyu Capital Group Management Ltd. (together with its affiliates,
“Boyu”). Boyu provides investment advisory services to multiple China-focused
investment funds which aim at providing growth and transformational capital for
fast-growing businesses in Greater China.
ATM
Fast Creative Zone Limited is a BVI business company incorporated in the British Virgin
Islands and Ultra Height Fund L.P. is an exempted limited partnership registered in the
Cayman Islands (the “ATM Entities”). Fast Creative Zone Limited is majority held by
Global Express Fund L.P., a limited partnership established in Cayman Islands. Global
Express Fund L.P. and Ultra Height Fund L.P. are managed by Global Express GP Limited
and Global Freight Limited respectively, both of which are ATM Capital’s management
entities. ATM Capital is an early to growth stage venture fund rooted in Southeast Asia.
The ATM Capital team consists of Chinese and Southeast Asian professionals with
significant experience in investment, entrepreneurship, technology and operations. ATM
Capital focuses on three main sectors of high growth potential including e-commerce and
its supporting infrastructure, consumer retail, fintech, and renewable energy. ATM Capital
has approximately US$1 billion AUM.
D1
D1 Master Holdco I (Hong Kong) Limited, a company organized under the laws of Hong
Kong, is wholly owned by D1 Master Holdco I LLC, a limited liability company
organized under the laws of the State of Delaware, which is wholly owned by D1 Capital
Partners Master LP, an exempted limited partnership organized under the laws of the
Cayman Islands. D1 Capital Partners Master LP’s general partner is D1 Capital Partners
GP Sub LLC, a limited liability company organized under the laws of the State of
Delaware, and which is ultimately controlled by D1 Capital Partners GP LLC, a limited
liability company organized under the laws of the State of Delaware. D1 Capital Partners
Master LP’s limited partners are D1 Capital Partners Onshore LP, a limited partnership
organized under the laws of the State of Delaware, and D1 Capital Partners Intermediate
LP, an exempted limited partnership organized under the laws of the Cayman Islands. D1
Capital Partners Onshore LP’s general partner is D1 Capital Partners GP LLC, and it has
raised capital from limited partners that include high net worth individuals as well as
institutional investors. D1 Capital Partners Intermediate LP’s general partner is D1
Capital Partners GP LLC, and its sole limited partner is D1 Capital Partners Offshore LP,
– 137 –
an exempted limited partnership organized under the laws of the Cayman Islands. D1
Capital Partners Offshore LP’s general partner is D1 Capital Partners GP LLC and it has
raised capital from limited partners that include high net worth individuals as well as
institutional investors.
D1 SPV Jupiter (Hong Kong) Limited, a company organized under the laws of Hong
Kong, is owned by (1) D1 Capital Series LLC – Series Jupiter, a separate series of D1
Capital Series LLC, a limited liability company organized under the laws of the State of
Delaware, which is controlled by its investment manager, D1 Capital Partners L.P., a
limited partnership organized under the laws of the State of Delaware, and by its
managing member, Daniel Sundheim, and which is wholly-owned by employees of D1
Capital Partners L.P. and (2) D1 Jupiter Holdings LP, a limited partnership organized
under the laws of the State of Delaware. D1 Jupiter Holdings LP’s general partner is D1
Jupiter Holdings GP LLC, a limited liability company organized under the laws of the
State of Delaware, and which is ultimately controlled by D1 Capital Partners GP LLC. D1
Jupiter Holdings LP’s limited partners include institutional investors.
D1 Master Holdco I (Hong Kong) Limited, D1 Capital Partners Master LP, D1 Capital
Partners Onshore LP, D1 Capital Partners Intermediate LP, D1 Capital Partners Offshore
LP, D1 SPV Jupiter (Hong Kong) Limited and D1 Jupiter Holdings LP are directly or
indirectly controlled by D1 Capital Partners GP LLC, as well as their investment manager,
D1 Capital Partners L.P., both of which are ultimately controlled by Daniel Sundheim. D1
Capital Partners L.P. manages private investment vehicles and other accounts which
invest globally, in both public and private companies, primarily in the technology, media
and telecom, industrials, healthcare, consumer, real estate and financial services sectors.
Hillhouse
JNRY III HOLDINGS LIMITED is an exempted company with limited liability

incorporated under the laws of the Cayman Islands and is engaged in investment holding.
JNRY III HOLDINGS LIMITED is ultimately managed and controlled by Hillhouse
Investment Management, Ltd. (“Hillhouse Investment”), an exempted company
incorporated under the laws of the Cayman Islands. Founded in 2005, Hillhouse
Investment is a global private equity firm of investment professionals and operating
executives who are focused on building and investing in high quality business franchises
that achieve sustainable growth. Independent proprietary research and industry expertise,
in conjunction with world-class operating and management capabilities, are key to
Hillhouse’s investment approach. Hillhouse partners with exceptional entrepreneurs and
management teams to create value, often with a focus on innovation and growth.
Hillhouse invests in the fields of healthcare, business services, broad consumption and
industrials. Hillhouse manages assets on behalf of institutional clients from across the
globe.
GLP
China Logistic Investment Holding (11) Limited, China Logistic Investment Holding (12)
Limited and Hidden Hill Investment 112 are exempted companies incorporated in the
Cayman Islands with limited liability; Hidden Hill SPV VIII is a special purpose vehicle
wholly-owned by Hidden Hill Foundation Fund L.P. Hidden Hill Foundation Fund L.P. is
a private equity fund registered in the Cayman Islands. China Logistic Investment
Holding (11) Limited, China Logistic Investment Holding (12) Limited, Hidden Hill
Investment 112 and Hidden Hill SPV VIII are ultimately controlled by GLP Pte. Limited.
– 138 –
Sequoia
SC GGF III Holdco, Ltd. is an exempted company with limited liability incorporated
under the laws of the Cayman Islands. The sole shareholder of SC GGF III Holdco, Ltd.
is Sequoia Capital Global Growth Fund III – Endurance Partners, L.P., which is an
investment fund whose primary purpose is to make equity investments in private
companies.
SF Express
CELESTIAL OCEAN INVESTMENTS LIMITED is a company incorporated under the

Laws of the British Virgin Islands and is wholly owned by S.F. Holding Co., Ltd. (順豐
控股股份有限公司) (“SF Holding”). SF Holding is a joint stock company established in
the PRC, whose shares are listed on the Shenzhen Stock Exchange (stock code:
002352.SZ). According to SF Holding, it is the largest integrated logistics service
provider in China and the fourth largest in the world, providing domestic and
international end-to-end one-stop logistics services.
Temasek
Dahlia Investments Pte. Ltd (“Dahlia”) is an indirect wholly-owned subsidiary of

Temasek Holdings (Private) Limited (“Temasek”). Incorporated in 1974, Temasek is a
global investment company with a net portfolio value of S$403 billion (RMB1.89 trillion)
as at 31 March 2022. Temasek’s purpose “So Every Generation Prospers” guides it to
make a difference for today’s and future generations. Temasek’s Charter defines its three
roles as an Investor, Institution and Steward, and shapes its ethos to do well, do right and
do good. Sustainability is at the core of all that Temasek does. Temasek is committed to
catalysing solutions to global challenges and activating capital – financial, human, social
and natural – to bring about a better and more inclusive world for all.
SAI Growth
SAI Growth Fund I, LLLP (“SAI Growth”) is a Delaware limited liability limited
partnership. SIG Asia Investment, LLLP, a Delaware limited liability partnership, is the
investment manager for SAI Growth pursuant to an investment management agreement
and, as such, has discretionary authority to vote and dispose of the shares in our Company
held by SAI Growth. In addition, Heights Capital Management, Inc., a Delaware
Corporation, is the investment manager for SIG Asia Investment, LLLP pursuant to an
investment agreement and, as such, has discretionary authority to vote and dispose of the
shares in our Company held by SAI Growth.
– 139 –
CMBI
Blessed Tiger Limited is a British Virgin Islands business company incorporated under
the laws of British Virgin Islands, which is an investment holding vehicle held by funds
managed by a subsidiary of CMB International Capital Corporation Limited (“CMBI”).
CMBI and its subsidiaries provide extensive financial services which mainly include,
among others, corporate finance, asset management (over RMB100 billion in AUM as of
31 Dec, 2021), wealth management, equity and structured finance businesses. CMBI is a
subsidiary of China Merchants Bank Co., Limited, a company listed on the Stock
Exchange (HKEX: 3968).
Other Pre-[REDACTED] Investors
Fast Rabbit Global Limited is a limited company incorporated in the British Virgin
Islands, the ultimate beneficial owners of which neither control more than 30% equity
interest nor can be deemed to have majority control.
Team Spirit Group Limited, a limited company incorporated in the British Virgin Islands,
is approximately 65.9% owned by the Labor Union Committee of Guangdong OPlus
Holdings Co., Ltd; approximately 33.6% owned by GLORY HILL HOLDINGS LIMITED
(高耀集團有限公司) and approximately 0.5% owned by Mr. Jin Leqin. The Labor Union
Committee of Guangdong OPlus Holdings Co., Ltd is deemed to be controlled by Mr.
Chen Mingyong.
Lead Sky Capital Limited is a limited company incorporated in the British Virgin Islands,
which is a shareholding platform for a number of regional sponsors, the ultimate
beneficial owners of which neither control more than 30% equity interest nor can be
deemed to have majority control.
Joyous Sound Limited is a British Virgin Islands company, wholly-owned by Jin Leqin,
an independent third party. Its main business scope is investment holding.
Long Origin Limited is a British Virgin Islands company, wholly-owned by Yuan Zhang,
a non-executive Director. Its main business scope is investment holding.
Starlight Hero Limited is a British Virgin Islands company, wholly-owned by Liang

Xiaojing, an independent third party. Its main business scope is investment holding.
Grow Profit Enterprises Limited is a limited company incorporated in the British Virgin
Islands, the ultimate beneficial owners of which neither control more than 30% equity
interest nor can be deemed to have majority control.
Top Valley Limited is a limited company incorporated in the British Virgin Islands, which
is a shareholding platform for a number of regional sponsors, the ultimate beneficial
owners of which neither control more than 30% equity interest nor can be deemed to have
majority control.
Constant Power Investment Limited is a limited company incorporated in the British

Virgin Islands, which is a shareholding platform for a number of regional sponsors, the
ultimate beneficial owners of which neither control more than 30% equity interest nor can
be deemed to have majority control.
– 140 –
Ambitious River Limited is a British Virgin Islands company, wholly-owned by Jin

Zhijiang, an independent third party. Its main business scope is investment holding.
Easy Innovation Limited is a Cayman Islands company, wholly-owned by Alice Yu-fen

Cheng (1), a non-executive Director. Its main business scope is investment holding.
Uranus Holding Limited is a limited company incorporated in the British Virgin Islands.
The largest shareholder is Glistening Volition Holdings Limited. None of the remaining
shareholders hold more than 30%.
Vast Admire Limited is a limited company incorporated in the British Virgin Islands, the
ultimate beneficial owners of which neither control more than 30% equity interest nor can
be deemed to have majority control.
Yimeter Holding Limited is a limited company incorporated in the British Virgin Islands,
which is an investment platform for a number of shareholders. The largest shareholder
holding approximately 38.61% equity interest is Orient Alpha Limited, a Hong Kong
incorporated company, wholly-owned by Bank of China Group Investment Limited. None
of the remaining shareholders hold more than 30%.
GCM Grosvenor JT SPV, LLC (the “GCM Shareholder”), a Delaware limited liability
company, is managed by GCM Investments GP, LLC, a Delaware limited liability
company, which is wholly owned by Grosvenor Capital Management Holdings, LLLP, a
Delaware limited liability limited partnership. The general partner of Grosvenor Capital
Management Holdings, LLLP is GCM Grosvenor Holdings, LLC, a Delaware limited
liability company, which is wholly owned by GCM Grosvenor Inc., a Delaware
corporation whose Class A common stock is publicly traded on the Nasdaq Stock Market
(Nasdaq: GCMG). GCMG is a global alternative asset management solutions provider.
Michael J. Sacks (“Mr. Sacks”) is the Board Chairman and Chief Executive Officer of
GCMG. Mr. Sacks disclaims beneficial ownership of the shares in the Company held by
the GCM Shareholder. The GCM Shareholder purchased these shares in the ordinary
course of business on behalf of its members, which includes institutional investors and D1
Capital Partners GP LLC. An affiliate of D1 Capital Partners GP LLC, D1 Capital
Partners L.P., serves as a non-discretionary investment consultant to Grosvenor Capital
Management, L.P., a limited partnership organized under the laws of the State of Illinois,
with respect to certain investments in the Company made by GCM Grosvenor JT SPV,
LLC. In connection with such non-discretionary investment consulting relationship, D1
Capital Partners GP LLC makes certain de minimis investments in GCM Grosvenor JT
SPV, LLC.
Strict Forward Limited is a British Virgin Islands company, wholly-owned by Qiu Yanjie,
an independent third party. Its main business scope is investment holding.
Tickking Holding Limited is a limited company incorporated in the British Virgin Islands,
which is an investment platform for a number of shareholders. The largest shareholder
holding approximately 30.91% equity interest is Yang Xingyun, an independent third
party. None of the remaining shareholders hold more than 30%.
Long Shining Limited is a British Virgin Islands company, ultimately controlled by Wu

Ching Ho, an independent third party. Its main business scope is investment holding.
Note: Ms. Alice Yu-fen Cheng is currently in the process of setting up a trust for estate planning purposes.
– 141 –
COMPLIANCE WITH INTERIM GUIDANCE AND GUIDANCE LETTERS
Based on the documents provided by our Company relating to the Pre-[REDACTED]

Investments, the Joint Sponsors are of the view that the Pre-[REDACTED] Investments are in
compliance with the Guidance Letter HKEx-GL29-12 issued in January 2012 and updated in
March 2017 by the Stock Exchange, Guidance Letter HKEx-GL43-12 issued in October 2012
and updated in July 2013 and in March 2017 by the Stock Exchange and Guidance Letter
HKEx-GL44-12 issued in October 2012 and in March 2017 by the Stock Exchange.
– 142 –
Corporate structure before the [REDACTED]
The following diagram illustrates the simplified corporate and shareholding structure of our Company immediately prior to the completion of the
[REDACTED]:
Jumping Other
Hillhouse
Summit Tencent(1) Boyu(1) ATM(1) D1(1) GLP(1) Sequoia(1) SF Holding(1) Dahlia(1) SAI Growth(1) CMBI(1) Pre-[REDACTED]
Investment(1)
Limited Investors(2)
11.54% 6.32% 6.10% 5.49% 3.10% 2.00% 1.99% 1.62% 1.54% 0.77% 0.54% 0.39% 58.6%
J&T GLOBAL
EXPRESS LIMITED
(CAYMAN ISLANDS)
ONWING GLOBAL
LIMITED (BVI)
100%
100% 63.81%
WINNER STAR HOLDINGS J&T Sino Investment JET GLOBAL EXPRESS LIMITED(5)
Holdings Limited (Cayman Islands)
LIMITED (HK) (HK)
100%
49% Chongqing Yunqing Supply
Chain Management Co., Ltd.
– 143 –
INFINITY
(“PRC WFOE”)
JET 86.41%
HOLDING
Yunlu International Limited(4)
LIMITED(3) Shanghai Yishangshiye (Cayman Islands)
100% 100% 100% 98.97% 49% (Thailand) (“PRC Holdco”) 100%
100% 100% 100% 100% 100% J&T Express International Logistics China
PT THUAN J&T PH GLOBAL (PRC)
51% J&T EGY J&T KSA J&T EXPRESS J&T MX HOLDING
GLOBAL PHONG EXPRESS GLOBAL JET J&T Express China J&T BR HOLDING
HOLDINGS HOLDING PTE. MIDDLE EAST
JET EXPRESS (MALAYSIA) JET EXPRESS PTE. LTD. PTE. LTD.
LIMITED LTD. HOLDINGS LIMITED
EXPRESS COMPANY SDN. BHD. EXPRESS (THAILAND) (Singapore) (Singapore)
(RAK ICC, UAE) (Singapore) (JAFZA, UAE)
(Indonesia) LIMITED (Malaysia) INC.(6) CO., LTD.
(Vietnam) (Philippines) (Thailand) 100% J&T Express (Zhejiang) Supply
100% J&T Express (Jinhua) Supply Chain Co., Ltd.
(PRC)
(PRC)
100% J&T Express (Guangzhou) 85% J&T Express (Jieyang) Supply Chain
Supply Chain Co., Ltd. Management Co., Ltd. 11
(PRC) (PRC)
85% J&T Express (Fujian) Supply

Chain Management Co., Ltd. 7
(PRC)
J&T Express (Hebei) Acme Supply

85%
(PRC)
J&T Express (Henan) Acme Supply

85%
(PRC)
Direct and indirect equity interest
- - - - - Controlled through contractual arrangements J&T Express (Shandong) Supply Chain
85%
Co., Ltd. 10
(PRC)
Notes:
(1) For details on such Shareholders, see “– Pre-[REDACTED] Investments – 14. Information on the Pre-[REDACTED] Investors” in this section.
(2) This includes all our other Pre-[REDACTED] Investors. For additional information, see “– Pre-[REDACTED] Investments – 14. Information on the Pre-[REDACTED]
Investors” in this section.
(3) The remaining 51% equity interest is held as to 1 share by Huo Wensheng and as to approximately 51% by Suteemon Aggarwal, who are Independent Third Parties. As per
relevant investment agreements, the Company indirectly enjoys substantially 100% of the dividend interest of Global Jet Express (Thailand) Co., Ltd.
(4) The remaining equity interest is held as to approximately 0.34% by Fantasy Dreamy World Limited, an Independent Third Party; as to approximately 0.34% by Cloud Road
Limited; as to approximately 3.74% by Henry Global Limited; as to approximately 5.92% by Rocky Star Limited and as to approximately 3.25% by Triple Global Logistics
Ltd., all of which are shareholding entities of members of Yunlu International Limited’s management team.
(5) Jet Global is the holding company of the Group’s operating entities in new markets including Brazil, Egypt, Mexico, UAE and Saudi Arabia. Jet Global conducted a round of
financing in 2021 to certain financial and institutional investors, following which such investors hold 36.19% of the shareholding in Jet Global. We have entered into a
shareholders agreement in relation to Jet Global, which includes customary terms concerning corporate governance, shareholder protection and termination provisions. Each of
the Jet Global investors (“Jet Global Investor(s)”) has also been granted an exit right, under which it may request the Company to issue such number of Shares as is equal
to the result of such Jet Global Investor’s exit price (to be calculated based on the results of operations in the new regions and the Jet Global Investor’s beneficial interest in
such new region, or the Jet Global Investor’s investment amount in such new region) divided by the share price of the Company at the time of the Jet Global Investor Exit Right
– 144 –
being exercised, in exchange for such Jet Global Investor’s holding in Jet Global (“Jet Global Investor Exit Right”). The Jet Global Investor Exit Right will only be exercisable
during 30-day periods in each of 2026 and 2027. For illustration purposes only, based on results of operations in the new regions in 2022, the Jet Global Investors’ beneficial
interest in all new regions, the Jet Global Investors’ investment amount and a maximum [REDACTED] of HK$[REDACTED], the Company would issue [REDACTED] Shares
should all the Jet Global Investors fully exercise the Jet Global Investor Exit Right, representing approximately [REDACTED]% of the total number of issued and outstanding
Shares immediately upon completion of the [REDACTED] (assuming the [REDACTED] is not exercised). The actual number of shares that may be issued by the Company
will be based on the actual performance of the new regions and share price of the Company at the time of the Jet Global Investor Exit Right being exercised.
The Company holds JNT KSA, the operating entity through which the Company conducts its Saudi operations, through J&T KSA HOLDING PTE. LTD.. JNT KSA is owned
as to 50% indirectly by the Company and 50% by eWTP Arabia Technology Innovation Limited (“eWTP”), an Independent Third Party. We have entered into a shareholders
agreement in relation to the JNT KSA, which includes customary terms concerning corporate governance, shareholder protection and termination provisions. eWTP has also
been granted an exit right, under which it may to request the Company to issue such number of Shares as is equal to the results of eWTP exit price (to be calculated based on
the results of operations of the JNT KSA group and eWTP’s beneficial interest in JNT KSA, or eWTP’s investment amount in JNT KSA) divided by the share price of the
Company at the time of the eWTP Exit Right being exercised, in exchange for eWTP’s holding in JNT KSA (“eWTP Exit Right”). The eWTP Exit Right will only be exercisable
after December 31, 2026. For illustration purposes only, based on the JNT KSA group’s results of operations in 2022, eWTP’s beneficial interest in JNT KSA, eWTP’s investment
amount and a maximum [REDACTED] of HK$[REDACTED], the Company would issue [REDACTED] Shares should eWTP exercise the eWTP Exit Right, representing
approximately [REDACTED]% of the total number of issued and outstanding Shares immediately upon completion of the [REDACTED] (assuming the [REDACTED] is not
exercised). The actual number of shares that may be issued by the Company will be based on the actual performance of the JNT KSA group and share price of the Company
at the time of the eWTP Exit Right being exercised.
The Company will comply with the relevant requirements of the applicable Listing Rules, in particular those under Chapters 14 and 14A and obtain the necessary shareholders’
approval (if required) to issue new Shares of the Company for the purpose of effecting the Jet Global Investor Exit Right and the eWTP Exit Right if any Jet Global Investors
and/or eWTP choose to exercise the Jet Global Investor Exit Right or the eWTP Exit Right respectively after the Proposed [REDACTED].
(6) The remaining 1.03% equity interest is held as to 0.33% by Mr. John John Pacheco; as to 0.33% by Ms. Shiela Mae Casayuran; as to 0.33% by Ms. Christina Ma Aquino; all
three of which are directors of PH Global Jet Express Inc., doing business under the name and style of J&T Express, 0.03% by J&T PH Holdings Pte Ltd, a subsidiary of the
Company; 1 share by Mr. Lei Ding and 1 share by Mr. Yu Rong.
(7) The remaining 15% equity interest is owned by Chongqing Jiesheng Supply Chain Technology Co., Ltd., ultimately controlled by regional sponsors who are responsible for
J&T Express (Fujian) Supply Chain Management Co., Ltd.’s management team.
(8) The remaining 15% equity interest is owned by Chongqing Jiehong Supply Chain Technology Co., Ltd., ultimately controlled by regional sponsors who are responsible for Hebei
J&T Express (Hebei) Acme Supply Chain Management Co., Ltd.’s management team.
(9) The remaining 15% equity interest is owned by Chongqing Jieben Supply Chain Technology Co., Ltd., ultimately controlled by regional sponsors who are responsible for Henan
J&T Express (Henan) Acme Supply Chain Co., Ltd.’s management team.
(10) The remaining 15% equity interest is owned by Chongqing Qiyue Supply Chain Technology Co., Ltd., ultimately controlled by regional sponsors who are responsible for J&T
Express (Shandong) Supply Chain Co., Ltd.’s management team.
(11) The remaining 15% equity interest is owned by Chongqing Zhujie Supply Chain Technology Co., Ltd., ultimately controlled by regional sponsors who are responsible for Jieyang
– 145 –
J&T Express (Jieyang) Supply Chain Management Co., Ltd.’s management team.
Corporate structure immediately following the [REDACTED]
The following diagram illustrates the simplified corporate and shareholding structure of our Company immediately following the completion of the
[REDACTED] (assuming (i) the [REDACTED] is not exercised and (ii) the Share Subdivision is completed).
Jumping Other
Summit Hillhouse Other Public
Tencent(1) Boyu(1) ATM(1) D1(1) GLP(1) Sequoia(1) SF Holding(1) Dahlia(1) SAI Growth(1) CMBI(1) Pre-[REDACTED]
Limited Investment(1) Shareholders
Investors(2)
[REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]% [REDACTED]%
J&T GLOBAL
EXPRESS LIMITED
(CAYMAN ISLANDS)
ONWING GLOBAL
LIMITED (BVI)
100%
100% 63.81%
WINNER STAR HOLDINGS J&T Sino Investment JET GLOBAL EXPRESS LIMITED(5)
Holdings Limited (Cayman Islands)
LIMITED (HK) (HK)
100%
49% Chongqing Yunqing Supply
INFINITY
(“PRC WFOE”)
JET 86.41%
– 146 –
HOLDING
Yunlu International Limited(4)
LIMITED(3) Shanghai Yishangshiye (Cayman Islands)
100% 100% 100% 98.97% 49% (Thailand) (“PRC Holdco”) 100%
100% 100% 100% 100% 100% J&T Express International Logistics China
PT THUAN J&T PH GLOBAL (PRC)
51% J&T EGY J&T KSA J&T EXPRESS J&T MX HOLDING
GLOBAL PHONG EXPRESS GLOBAL JET J&T Express China J&T BR HOLDING
HOLDINGS HOLDING PTE. MIDDLE EAST
JET EXPRESS (MALAYSIA) JET EXPRESS PTE. LTD. PTE. LTD.
LIMITED LTD. HOLDINGS LIMITED
EXPRESS COMPANY SDN. BHD. EXPRESS (THAILAND) (Singapore) (Singapore)
(RAK ICC, UAE) (Singapore) (JAFZA, UAE)
(Indonesia) LIMITED (Malaysia) INC.(6) CO., LTD.
(Vietnam) (Philippines) (Thailand) 100% J&T Express (Zhejiang) Supply
100% J&T Express (Jinhua) Supply Chain Co., Ltd.
(PRC)
(PRC)
100% J&T Express (Guangzhou) 85% J&T Express (Jieyang) Supply Chain
Supply Chain Co., Ltd. Management Co., Ltd. 11
(PRC) (PRC)
85% J&T Express (Fujian) Supply

(PRC)
J&T Express (Hebei) Acme Supply

85%
(PRC)
J&T Express (Henan) Acme Supply

85%
(PRC)
Direct and indirect equity interest
J&T Express (Shandong) Supply Chain
- - - - - Controlled through contractual arrangements 85%
Co., Ltd. 10
(PRC)
Notes (1) to (11): See the details contained in the preceding pages.
PRC REGULATORY REQUIREMENTS
According to the M&A Rules jointly issued by MOFCOM, the State-owned Assets Supervision
and Administration Commission of the State Council, the SAT, the CSRC, the SAIC and the
SAFE on August 8, 2006, effective on September 8, 2006, and amended on June 22, 2009, a
foreign investor is required to obtain necessary approvals when it (i) acquires the equity of a
domestic enterprise so as to convert the domestic enterprise into a foreign-invested enterprise;
(ii) subscribes the increased capital of a domestic enterprise so as to convert the domestic
enterprise into a foreign-invested enterprise; (iii) establishes a foreign-invested enterprise
through which it purchases the assets of a domestic enterprise and operates these assets; or (iv)
purchases the assets of a domestic enterprise through relevant agreements and then invests such
assets to establish a foreign-invested enterprise. The M&A Rules, among other things, further
purport to require that an offshore special vehicle, or a special purpose vehicle, formed for
overseas listing purposes and controlled directly or indirectly by PRC companies or
individuals, to obtain the approval of the CSRC prior to the [REDACTED] and trading of such
special purpose vehicle’s securities on an overseas stock exchange, in the event that the special
purpose vehicle acquires shares of or equity interests in the PRC companies in exchange for
the shares of offshore companies.
Our PRC Legal Adviser is of the opinion that, based on their understanding of the current PRC
laws and regulations, prior CSRC approval for the [REDACTED] is not required because (i)
WFOE and its wholly-owned PRC subsidiaries were not established through a merger or
acquisition of equity interest or assets of a PRC domestic company owned by PRC companies
or individuals, as defined under the M&A Rules, that are the beneficial owners of our
Company, and (ii) no provision in the M&A Rules clearly classifies contractual arrangements
as a type of transaction subject to the M&A Rules. However, our PRC Legal Adviser further
advised that uncertainties still exist as to how the M&A Rules and other PRC laws and
regulations will be interpreted and implemented and whether the relevant authorities would
promulgate new rules or regulations or requirements in the future to impose additional
requirements on us. There can be no assurance that the relevant PRC government agencies,
including the CSRC, would reach the same conclusion as our PRC Legal Adviser. If the CSRC
or other PRC regulatory body subsequently determines that we need to obtain the CSRC’s
approval for this [REDACTED] or if the CSRC or any other PRC government authorities
promulgates any interpretation or implements rules before our [REDACTED] that would
require us to obtain CSRC or other governmental approvals for this [REDACTED], we may
face adverse actions or sanctions by the CSRC or other PRC regulatory agencies. In any such
event, these regulatory agencies may impose fines and penalties on our operations in China,
limit our operating privileges in China, delay or restrict the repatriation of the [REDACTED]
from this [REDACTED] into the PRC or take other actions that could have a material adverse
effect on our business, financial condition, results of operations, reputation and prospects, as
well as our ability to complete this [REDACTED]. The CSRC or other PRC regulatory
agencies may also take actions requiring us, or making it advisable for us, to halt this
[REDACTED] before settlement and delivery of the Shares [REDACTED] by this document.
Consequently, if you engage in market trading or other activities in anticipation of and prior
to settlement and delivery, you do so at the risk that such settlement and delivery may not
occur. In addition, if the CSRC or other regulatory authorities later promulgate new rules or
explanations requiring that we obtain their approvals or accomplish the required filing or other
regulatory procedures for this [REDACTED] or future capital raising activities, we may be
unable to obtain a waiver of such approval requirements, if and when procedures are
established to obtain such a waiver. Any uncertainties or negative publicity regarding such
approval, filing or other requirements could materially and adversely affect our business,
prospects, financial condition, reputation, and the trading price of the shares.
– 147 –
SAFE REGISTRATION IN THE PRC
Pursuant to SAFE Circular 37, promulgated by SAFE and effective on July 14, 2014, replacing
SAFE Circular 75, (i) a PRC resident must register with the local SAFE branch in connection
with their contribution of offshore or domestic assets or equity interests in an overseas SPV
that is directly established or indirectly controlled by the PRC resident for the purpose of
conducting overseas investment or financing, and (ii) following the initial registration, the PRC
resident is also required to register with the local SAFE branch for any major change in respect
of the Overseas SPV, including, among other things, a change of the Overseas SPV’s PRC
resident shareholder(s), the name of the Overseas SPV, terms of operation, or any increase or
reduction of the Overseas SPV’s capital, share transfer or swap, and merger or division.
Pursuant to SAFE Circular 37, failure to comply with these registration procedures may result
in penalties. In addition, due to such failure to comply with the registration procedures, the
PRC subsidiaries of that Overseas SPV may be prohibited from distributing their profits and
dividends to their offshore parent company or from carrying out other subsequent cross-border
foreign exchange activities, and the Overseas SPV and its offshore subsidiary may be restricted
in their ability to contribute additional capital to their PRC subsidiaries.
Pursuant to the Circular of the SAFE on Further Simplification and Improvement in Foreign
Exchange Administration on Direct Investment (《關於進一步簡化和改進直接投資外匯管理
政策的通知》), promulgated by SAFE and effective on June 1, 2015, the power to accept
foreign exchange registration was delegated from local SAFE to qualified banks.
As advised by our PRC Legal Adviser, Mr. Li, who is a PRC resident, has completed the
required registration with the SAFE on November 28, 2019.
– 148 –
BUSINESS
BUSINESS OVERVIEW
China
2020
Thailand
2019 Mexico
2022
2022 2019
Brazil
2022 2019 2018

2022 2020
Indonesia Malaysia
2015 2018
global footprint.
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No. 1 in Southeast Asia 14.6Bn Parcels Delivered Partnering with Leading

22.5% Market Share, in 2022 E-commerce Platforms
112.3% CAGR 2020-2022 in Markets where We
> 3 Times of No.2(1)
Operate
Unique and Highly Scalable Proprietary and Innovative US$7.3Bn Revenue in 2022
JMS System to Empower
Regional Sponsor Model 117.6% CAGR 2020-2022
Global Operations
with Aligned Interests and Spanning 13 Countries
Shared Culture
Notes:
1. By parcel volume in 2022, according to Frost & Sullivan
Southeast Asia, China and the New Markets where we operate present us with significant
growth opportunities:
Southeast Asia China New Markets

In US$ billion In US$ billion In US$ billion
17.9% 29.8% 29.1% 35.6% 14.6% 27.5%
E-commerce
Retail CAGR: 10.3% CAGR: 22.6%
Transaction CAGR: 18.6% 2,957.2
373.6 1,997.4 243.1
Value
188.6 107.6
2023E 2027E 2023E 2027E 2023E 2027E
In billion In billion In billion

Total
Volume of CAGR: 15.5% CAGR: 10.7% CAGR: 17.6%
Parcels
23.5 188.0 7.1
125.1
13.2 3.7
2023E 2027E 2023E 2027E 2023E 2027E
E-commerce penetration rate
Shift to e-commerce. E-commerce retail has seen significant growth in Southeast Asia in terms
of transaction value from US$38.3 billion in 2018 to US$154.8 billion in 2022, representing
a CAGR of 41.8%. Improvements in Internet infrastructure in Southeast Asia will likely further
support the transition from offline to online retail channels. According to Frost & Sullivan,
e-commerce retail transaction value in Southeast Asia is expected to grow from US$188.6
billion in 2023 to US$373.6 billion in 2027, representing a CAGR of 18.6%, with e-commerce
penetration rate increasing from 17.9% in 2023 to 29.8% in 2027. In China, e-commerce retail
transaction value increased from US$1,058.5 billion in 2018 to US$1,777.1 billion in 2022,
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representing a CAGR of 13.8%, and is expected to grow from US$1,997.4 billion in 2023 to
US$2,957.2 billion in 2027, representing a CAGR of 10.3%, according to Frost & Sullivan,
with the e-commerce penetration rate increasing from 29.1% in 2023 to 35.6% in 2027. In
addition, we anticipate that the rise of social e-commerce including short video and live
streaming will drive additional e-commerce transactions and demand for cost-effective
logistics services. According to Frost & Sullivan, the social e-commerce retail market in
Southeast Asia grew rapidly from US$9.2 billion in 2018 to US$60.2 billion in 2022,
representing a CAGR of 59.9%, and is expected to reach US$179.8 billion in 2027 from
US$80.7 billion in 2023, representing a CAGR of 22.2% from 2023 to 2027. The social
e-commerce retail market in China also grew rapidly from US$98.5 billion in 2018 to
US$626.5 billion in 2022, representing a CAGR of 58.8%, and is expected to reach US$1,660.4
billion in 2027 from US$839.7 billion in 2023, representing a CAGR of 18.6%. The social
e-commerce penetration rate is expected to reach 48.1% and 56.1% in Southeast Asia and
China in 2027, respectively.
Demand for express delivery services. Benefiting from the significant e-commerce market,
Southeast Asia and China combined form the largest and fastest-growing express delivery
service market in the world, according to Frost & Sullivan. In Southeast Asia, total volume of
parcels shipped rapidly increased from 3.3 billion in 2018 to 11.1 billion in 2022, representing
a CAGR of 36.0%, and is projected to increase from 13.2 billion in 2023 to 23.5 billion in
2027, representing a CAGR of 15.5%, while in China the volume increased from 50.7 billion
in 2018 to 110.6 billion in 2022, representing a CAGR of 21.5%, and is projected to increase
from 125.1 billion in 2023 to 188.0 billion in 2027, representing a CAGR of 10.7%, according
to Frost & Sullivan.
Demand from the New Markets. In 2022, we strategically expanded into other large and
high-growth markets around the world, including Saudi Arabia, UAE, Mexico, Brazil and
Egypt, which we refer to as the New Markets. These markets have burgeoning e-commerce
industries and are undergoing a pivotal transition as consumer shift from traditional retail to
online shopping. According to Frost & Sullivan, e-commerce retail transaction value of the
New Markets in aggregate reached US$85.7 billion in 2022 at a CAGR of 27.5% from 2018
and is expected to further grow to US$243.1 billion in 2027 at a CAGR of 22.6% from 2023.
Driven by the growth of e-commerce retail markets and e-commerce penetration rate, express
delivery volume in these markets in aggregate reached 3,095.8 million in 2022 and is expected
to further grow to 7,137.7 million in 2027 at a CAGR of 17.6% from 2023.
Demand for cross-border services. Capitalizing on our success in each of the markets in which
we operate, we are developing cross-border services to connect these markets to the global
e-commerce network. In Southeast Asia and China, the total cross-border e-commerce retail
markets by transaction value increased from US$213.8 billion in 2018 to US$492.2 billion in
2022, representing a CAGR of 23.2%, and are expected to increase from US$605.2 billion in
2023 to US$1,257.0 billion in 2027, representing a CAGR of 20.0%, according to Frost &
Sullivan. We believe the rise of the cross-border e-commerce market will drive the growth of
the cross-border logistics market. The global cross-border logistics market is expected to reach
US$680.7 billion in 2027 from US$456.1 billion in 2023, representing a CAGR of 10.5%,
according to Frost & Sullivan.
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merchants and consumers across multiple regions and enabling the growth of e-commerce
training.

and Culture

Highly Flexible
jurisdictions

Lower Cost
and Capital
Requirement
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We have experienced significant growth since we commenced operations in Indonesia in 2015

and over the Track Record Period. In Southeast Asia, we experienced continuous growth in
parcel volume and were able to achieve positive adjusted EBITDA growth from 2020 to 2022.
We expanded into the China market in 2020 and have been focusing on consolidating our
market position in China. The following table sets forth our revenue, adjusted loss and adjusted
EBITDA in total amount and by geographic segment for the periods indicated:

2020 2021 2022
(in US$ thousands)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,535,425 4,851,800 7,267,428

Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . 1,046,504 2,377,544 2,381,726
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478,847 2,181,368 4,096,177
Others (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,074 292,888 789,525
Non-IFRS measures (unaudited)

Adjusted loss(1) . . . . . . . . . . . . . . . . . . . . . . . . . (475,861) (911,347) (798,649)
Adjusted EBITDA(1) . . . . . . . . . . . . . . . . . . . . . . (321,163) (528,131) (204,442)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . 266,561 427,436 331,582
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (616,227) (939,695) (334,906)
Others (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,652 (14,028) (168,789)
Unallocated(3) . . . . . . . . . . . . . . . . . . . . . . . . . 26,851 (1,844) (32,329)
Notes:
(1) A non-IFRS measure. See “Financial Information – Non-IFRS Measures” for more details.
(2) Includes our cross-border services and domestic express delivery services in the New Markets.
(3) Represents certain expenses, gains and losses, including general and administrative expenses, and exchange
During the Track Record Period, the growth of our parcel volume was primarily driven by the
continued expansion of our network, an increase in the number of merchants on e-commerce
platforms that used our services and the increased demand for express delivery services in the
markets in which we operate. Our global annual parcel volume in 2022 was 14.6 billion,
representing an increase of 39.0% from 10.5 billion in 2021 and an increase of 350.6% from
3.2 billion in 2020. The table below illustrates the growth in our parcel volume in Southeast
Asia and China for the periods indicated, as well as the 2022 market share in these geographic
segments:
2022
2020–2022 Market
2020 2021 2022 CAGR Share
(in millions)
Southeast Asia . . . . . . . . . . . . 1,153.8 2,160.8 2,513.2 47.6% 22.5%

China. . . . . . . . . . . . . . . . . . 2,083.5 8,334.3(1) 12,025.6 140.2% 10.9%
Note:
(1) On December 8, 2021, we completed the acquisition of BEST Express China from BEST and consolidated the
results of BEST Express China since December 8, 2021.
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OUR STRENGTHS
A global express delivery operator with the leading position in Southeast Asia, serving
largest and fastest-growing emerging markets
and the Middle East. Our express delivery services span 13 countries, covering seven countries
across Southeast Asia, namely Indonesia, Vietnam, Malaysia, the Philippines, Thailand,
Cambodia and Singapore, as well as China. These seven Southeast Asian countries and China
represented combined e-commerce retail transaction value of US$1,931.9 billion in 2022,
growing at a CAGR of 15.2% from 2018 to 2022, and parcel volume of 121.7 billion in 2022,
growing at a CAGR of 22.6% from 2018 to 2022, according to Frost & Sullivan. According to
Frost & Sullivan, we are the number one express delivery operator in Southeast Asia by parcel
volume for 2022 and the fastest-growing express delivery operator in China among the major
players during the period from the fourth quarter of 2020 to the fourth quarter of 2022.
We have achieved marked success in Southeast Asia, an emerging market in which economic
development and increasing internet penetration have spurred rapid growth in the e-commerce
retail market over the last several years. There are significant barriers to entry and operational
challenges in the Southeast Asian markets, including poor network coverage, underdeveloped
transportation infrastructure, fewer settlement options and difficulty of access to remote
locations. We began in Indonesia, the largest e-commerce retail market in Southeast Asia. By
leveraging our existing resources, know-how, broad network and connections with various
stakeholders along the logistics value chain, we have created a reliable and efficient express
delivery network in Indonesia. We then further expanded into Vietnam, Malaysia, the
Philippines, Thailand, Cambodia and Singapore, grew our parcel volume at a CAGR of 47.6%
from 2020 to 2022 and achieved a market share in Southeast Asia of 22.5% by parcel volume
in 2022, according to Frost & Sullivan. Our operational excellence enabled us to achieve cost
efficiency in Southeast Asia. As we strive to innovate and scale, we have invested in
technologies such as our highly automated, modern sorting centers to increase our sorting
capacity, efficiency and scale. Benefiting from our massive parcel volume, we are able to
achieve operating leverage and economies of scale, reducing costs through continuous
technological innovation, automation of sorting centers, systematic planning of resources and
growing bargaining power in the market.
We have also grown rapidly in China since our entry in March 2020, achieving a scale of 50
million peak daily parcel volume in November 2022. According to Frost & Sullivan, we are the
fastest among our peers in China to achieve such scale. We have fully integrated BEST Express
China, which we acquired in December 2021, strengthened our network capacity, enhanced our
infrastructure, enlarged our customer base and established partnerships with key e-commerce
platforms in China. We grew at a CAGR of 140.2% by parcel volume in China from 2020 to
2022 through a combination of organic growth and acquisition. In 2022, we achieved a market
share of 10.9% with a parcel volume of 12,025.6 million in China, according to Frost &
Sullivan.
In 2022, we strategically expanded into other large and high-growth markets around the world,
including Saudi Arabia, UAE, Mexico, Brazil and Egypt, which are undergoing a pivotal
transition as consumers shift from traditional retail to online shopping. These markets are
expected to continue to experience significant growth in e-commerce retail. In addition,
capitalizing on our success in each of the markets in which we operate, we plan to develop
cross-border services to connect these markets to the global e-commerce network.
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Independent e-commerce enabler, connecting marketplaces and merchants to new

markets and consumers
We have a proven track record of enabling e-commerce growth in the key markets in which we
operate. According to Frost & Sullivan, the e-commerce penetration rate in Southeast Asia is
expected to increase from 17.9% in 2023 to 29.8% in 2027, and the e-commerce penetration
rate in the New Markets is expected to increase from 14.6% in 2023 to 27.5% in 2027, but
many regions still have limited express delivery services. We are able to provide reliable and
cost-competitive express delivery services to areas historically underserved by incumbents
with a broad network, reliable service and local know-how.
We are platform neutral and diversified. We serve many consumers and merchants on the
leading e-commerce platforms in Southeast Asia and China that are changing the landscape of
e-commerce, such as Shopee, Lazada, Tokopedia, Pinduoduo, Taobao, Tmall, Shein and Noon,
as well as short video and live streaming platforms, such as TikTok, Douyin and Kuaishou. We
empower our e-commerce partners in various ways. For example, we helped Shopee grow by
providing critical e-commerce logistics and parcel delivery infrastructure in emerging markets
such as Indonesia, Malaysia, Vietnam, the Philippines, Thailand and Brazil. We also provide
our partners with significant network capacity, particularly during peak seasons. For instance,
during the Ramadan season, we were able to process parcels at a peak daily volume of 15.1
million across SEA countries, and we were the only express operator in SEA capable of
processing such significant daily volume, according to Frost & Sullivan. We are also focused
on developing technology so that we can integrate our services with that of our partners. For
example, to facilitate data transfer, we have integrated our application programming interface
(API) with the logistics system of an e-commerce platform of a short video and live streaming
player in Indonesia.
Our global network enables us to best serve the fast-growing cross-border e-commerce retail
markets, connecting marketplaces and merchants to new markets and consumers. Our leading
positions in Southeast Asia and China, combined with our global network, position us to
capture the significant market potential from growing cross-border e-commerce activities and
intra-regional trade. The total cross-border e-commerce retail markets in Southeast Asia and
China by transaction value increased at a CAGR of 23.2% from US$213.8 billion in 2018 to
US$492.2 billion in 2022, and are expected to increase from US$605.2 billion in 2023 to
US$1,257.0 billion in 2027, representing a CAGR of 20.0%, according to Frost & Sullivan.
The rise of the cross-border e-commerce market is expected to drive the growth of the
cross-border logistics market. The global cross-border logistics market is expected to reach
US$680.7 billion in 2027 from US$456.1 billion in 2023 at a CAGR of 10.5%, according to
Frost & Sullivan.
Scalable regional sponsor model that promotes rapid penetration and growth in new
markets
We operate a highly scalable regional sponsor model based on the local networks that we lead
with the support of our regional sponsors. Under the leadership of our country headquarters,
critical parts of our network, including sorting centers, line-haul and sometimes first-mile
pickup and last-mile delivery, are operated by our regional sponsors through regional operating
entities. Through years of collaborating with regional sponsors and successfully expanding
throughout Asia, we have amassed deep institutional knowledge with respect to effective
management of regional sponsors and network partners. The regional sponsors maintain
long-term cooperation with us to grow and share successes in the local markets, and we provide
institutional support for regional sponsors as they seek to expand to new locations
internationally. We leverage our accumulated insights and experience in order to expand into
new geographic markets along with our regional sponsors.
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Our business model allows us to maintain effective management over our network. At the same
time, our regional sponsors, who are the culture carriers of our Company, can make decisions
that promote the growth and success of the business based on their local knowledge and
business experience in their respective regions without unnecessary administrative hurdles. By
collaborating with regional sponsors, we have been able to leverage regional sponsors’
resources and experience to expand our network, reach markets that historically had limited
express delivery alternatives, and establish operations rapidly and efficiently, while striving to
reduce capital expenditures. Benefiting from the local knowledge and experience of our
regional sponsors, we are able to provide consistent and superior services to our direct and end
customers. In addition, our regional sponsors help us monitor and manage the network
partners, implement our technologies and maintain service standards across the pickup and
delivery outlets operated by our network partners, ensuring sustainable growth of the network
partners. Through this adaptive business model, we have been able to reduce our unit costs,
improve operating leverage, and achieve market-leading positions in Southeast Asia. In China,
the largest express delivery market in the world in 2022, we are able to compete effectively
with long-established players. Our success in Southeast Asia and China demonstrates the
strengths of our business model, including our superior execution capabilities and resilience
against competition from established players. Capitalizing on our seamless collaboration with
regional sponsors, we have rapidly scaled our local express delivery networks in countries that
we entered into in 2022, laying a solid foundation for our future expansion and success in these
markets.
Adaptive technology system and continued focus on innovation to empower global

operations
We have a proven track record of tackling challenges unique to each market at different stages
of operations with technology and innovation. Since our inception, we have been committed to
building integrated technology infrastructure that can empower our global operations. We
designed our JMS system, a universal technology framework that encompasses a broad range
of critical functions. Through the JMS system, we are able to build and continually upgrade the
address digitalization system in each market, allocate transportation and network resources,
track and monitor the full lifecycle of parcels, ensure quality customer services, manage
complex finance processes, and provide regional sponsors and network partners with
easy-to-use, reliable tools to manage local operations. The JMS system is also highly flexible
and adaptive, allowing us to localize the operating system and launch operations in new
markets in a frictionless, expedited way. For example, we were generally able to complete the
set-up of a customized JMS system and related IT infrastructure and expedite pre-operation
preparation in the New Markets within three months of preparation.
Apart from being digital native, we also continue to innovate critical aspects of our business
and stay ahead of our local peers. For example, we pioneered the digitalization and
management of addresses in Southeast Asia with our proprietary address digitalization
platform, which differentiated us from our peers who conventionally based their address
digitalization systems primarily on third-party address databases. Our self-developed, self-
maintained address database, as well as our nine-digit code address system built upon this
database, ensures uninterrupted, consistent technology support for operations in Southeast
Asia. According to Frost & Sullivan, we were the only express delivery service provider at
scale that applied its nine-digit code technology with a proprietary address database in
Southeast Asia as of December 31, 2022. Similarly in China, we first developed our own
address digitalization system to cater to our unique, dynamic expansion activities when we first
entered into the market. After establishing our operations and network, we continued to
innovate and upgrade our address digitalization system, which now employs an advanced
address mapping algorithm to standardize, categorize and format the massive volume of
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address inputs into structured data with auto-correct, auto-fill, auto-associate, and auto-cleanse
functions. The upgraded system improves delivery efficiency and accuracy even if the delivery
addresses are partially incorrect or inconsistent in format, which we believe is instrumental to
e-commerce players targeting remote areas. According to Frost & Sullivan, the J&T
four-segment code system is one of the few advanced systems that integrate and consolidate the
major capabilities of the mainstream address digitalization algorithms in China.
Our innovation and technology capabilities are backed by a strong team of research and
development personnel. As of December 31, 2022, we had a research and development team
of 1,899 personnel across the globe, and our global R&D expenses have been growing at a
CAGR of 77% from 2020 to 2022.
High-quality services catering to regional customer and market needs
We provide high-quality services that cater to regional customer and market needs. Together
with our regional sponsors and network partners, we strive to provide consistent and superior
service to our direct and end customers. We actively manage and optimize our network density
to ensure our capacity during seasonal shopping events and holidays, and bring efficiency
improvements to our customers with reduced delivery time and higher fulfillment accuracy. We
have established and streamlined our operations, policies and processes to standardize and
control service quality throughout our network. We have standardized, unified and streamlined
our customer service protocols and criteria across Southeast Asia, aiming to provide consistent,
reliable, high-quality shipping experience to consumers and customers. For example, we have
pioneered providing express delivery services with unique features such as 365-day operation
and 24-hour customer service in Indonesia and Malaysia, according to Frost & Sullivan, which
had raised local industry standards.
We also offer ancillary services based on local market demands. For example, we provide the
broadest coverage of cash-on-delivery services in Southeast Asia, which allows our
e-commerce platform customers to reach a greater range of consumers, according to Frost &
Sullivan. This addresses challenges faced by e-commerce platforms which operate in markets
with many online shoppers who may not have access to digital payment services.
We monitor a series of key service quality indicators such as lost parcel rate and complaint rate
and have improved each of these rates over the years. According to a consumer survey
conducted by Frost & Sullivan in Southeast Asia in March 2022, we achieved an average Net
Promoter Score, or NPS, of 8.4 out of 10, which was the best among our peers with respect to
speed, timeliness and service quality satisfaction. In China, based on figures reported by the
State Post Bureau of the PRC, we achieved a lost parcel rate of 0.32 per million parcels, a
complaint rate of 0.78 per million parcels and an effective complaint rate of 0.02 per million
parcels in the first three months of 2023, compared to industry averages of 2.88, 10.29 and 3.16
per million parcels, respectively, for the first three months of 2023.
Entrepreneurial and experienced management team and regional sponsors dedicated to

cultivating leaders and promoting development of our network
Our founder, Mr. Jet Jie Li, a serial entrepreneur with over 20 years of sales and entrepreneurial
experience, is supported by a deep professional management bench and an extensive regional
sponsor group. Our regional sponsors also collectively form a pool of deep entrepreneurial and
industry experience, bringing critical local knowledge to our business and helping us execute
our regional strategies. Bringing diverse perspectives and an international outlook, our regional
sponsors work with our management team to implement key strategic initiatives in our regions
of operations and help us manage our vast delivery network.
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Our management team is dedicated to investing in our employees and promoting leaders. We
continue to invest in training and skills development to promote our culture and develop
leaders with in-depth knowledge of our Company, the industry, technology and local market
needs. We also hire highly qualified personnel into our country-level management teams, who
are responsible for day-to-day operations in each of our regions of operations. We believe our
experienced and entrepreneurial management team, our dynamic team of regional sponsors and
our vibrant entrepreneurial culture have contributed to and will continue to contribute to the
growth of our operations and our success in replicating our business model in other markets.
OUR STRATEGIES
Solidify our leading position and continue to grow our market share
We have built a global network and achieved a leading market share by parcel volume in
multiple countries where we operate. We intend to solidify our leading position in these
markets as well as establish leadership positions in the new markets which we have recently
entered into with our regional sponsors to grow our scale of operations. We will continue to
deepen our relationships with e-commerce partners locally and globally, tap into other markets
with them, explore new ways of collaboration, connect with more merchants across regions,
and grow our market share. We will also expand the coverage of our global network and
enhance cross-border connectivity by capitalizing our experience in localizing our express
delivery services, navigating different linguistic, cultural and operational environments and
managing a complex, global network. In particular, we intend to replicate our operational
excellence to the New Markets and stay ahead of the competition.
We intend to invest more deeply in our brand and improve service quality. We will continue
to offer premier services tailored to the diversified demands and requirements of our end
customers. We also will continue to upgrade our customer service, enhance our technology
system, and strengthen management of regional sponsors and training of network partners to
maintain service quality, improve brand image and earn our customers’ trust and business. We
believe our continuing quality growth at scale will drive stronger unit economics and
economies of scale in the future.
Expand our capacity while enhancing the efficiency and connectivity of our logistics
network
We will continue to expand the capacity of our logistics network in a selective, prudent and
capital-efficient manner. We plan to strategically select sites for our new sorting centers and
optimize density of our pickup and delivery outlets to deepen geographical coverage based on
end customer demands. In addition, we expect to continue upgrading sorting machinery and
investing in technology that will further improve the accuracy and efficiency of our sorting
centers. Having obtained success in Southeast Asia and China, we seek to skip the
trial-and-error process in other emerging markets and apply our industry insights, advanced
machinery and equipment, and operational know-how that are readily accessible to us.
Meanwhile, we will continue to expand our line-haul network, upgrade our fleets, and diversify
means of transportation in accordance with local demands in each market. Through our unique
business model, our regional sponsors will be incentivized to help us manage our facilities
including line-haul vehicles and sorting centers, recruit and manage network partners, and help
expand our network capacity to create a network that is resilient to peak volumes. In addition,
we will continue to help our network partners grow their business and optimize their
operations.
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As we further develop each local network, we are also well positioned to facilitate global and
local expansion of our e-commerce partners by helping them reach more customers in each
local market and offering consistent, reliable services across the globe. For example, we will
continue to capture the opportunity to collaborate with global e-commerce players and go to
the markets in which they intend to start operations, becoming their anchor express delivery
service provider and quickly growing our local networks. In addition, taking advantage of our
local network capacity, we will be able to further develop our cross-border services and offer
consumers, merchants and e-commerce partners a diversified portfolio of service offerings.
Expand into new markets and new service offerings
We seek to provide integrated logistics services to our customers globally. We believe there are
significant opportunities in emerging economies, where prospective e-commerce market
growth is expected to be high and e-commerce penetration remains low. For each future market
we intend to enter into, we will also take into consideration the local e-commerce penetration
and development stage of the economy. We will continue to seek collaboration with
e-commerce partners who intend to penetrate these markets and establish themselves in these
markets. We also intend to further diversify our service offerings and provide one-stop logistics
solutions to consumers covering storage, inventory management, parcel delivery and
warehousing. To support our key strategic partnerships, we have expanded into select growth
markets including Saudi Arabia, UAE, Mexico, Brazil and Egypt. In May 2023, we achieved
a daily peak volume of over 630,000 parcels in Brazil. According to Frost & Sullivan, we are
the fastest to achieve such level of parcel volume among our major local peers in Brazil. We
plan to continue replicating our success in Southeast Asia and China in carefully selected
markets, by partnering with our regional sponsors and network partners to quickly establish a
strong network in these new markets to serve a broad customer base.
We will leverage our existing infrastructure and network capacity to develop and expand our
services throughout the entire logistics value chain. We will continue expanding our
cross-border services by connecting with more destination logistics centers, domestic
warehouses and last-mile capacity. In addition, we have recently developed a variety of service
offerings such as reverse logistics and supply chain solutions and will continue to introduce
new service offerings to provide more comprehensive services to our customers. We also
expect to expand and diversify our customer base and acquire more non-e-commerce parcels
to enhance the mix of our parcel volume and broaden our market reach.
Invest in innovation, technology and environmental sustainability
We strive to continually apply technologies across all aspects of our business. We plan to
develop and apply our self-developed JMS system in all the markets we operate in. We seek
to develop and upgrade key functions within the JMS system to empower each stage of our
business processes. For example, we will continue our research and development in our address
digitalization system to improve accuracy and efficiency of the delivery process. We seek to
continually optimize our address digitalization algorithms and adopt the most suitable address
digitalization system in each market based on local market needs. We will also further develop
our global data management platform to centrally manage data from every aspect of our
operations and from each market, analyze and visualize the data to facilitate management
review, perform effective projections on delivery demand, resource allocation and
transportation route planning, and empower operations with functions including alerts on
anomalies such as lost parcels or missed pickups, among others. We will constantly follow the
latest technology trends in the industry and keep our technologies and systems updated. For
example, we plan to implement more AI-powered customer support to reduce waiting time and
improve end customer experience.
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We will also continue to invest in automation technologies to streamline operations, optimize

transportation and labor costs, increase operational efficiency and reduce unit cost. In
particular, we will increase the utilization of digitalized packaging identification such as RFID
to be compatible with our increasingly automated operations in an eco-friendly, sustainable
way. We also intend to invest in smart management systems to monitor and optimize our energy
and water usage. We are also committed to researching and upgrading software that is equipped
with hardware to maximize the utility of the sorting equipment, reduce human errors and labor
costs involved and ultimately increase operational efficiency. Leveraging our existing data
analysis technologies, we intend to further enhance our route planning, address digitalization
and parcel volume prediction capabilities by exploring AI-based functions.
VALUE PROPOSITIONS TO OUR PARTICIPANTS
Value Propositions to Consumers and Customers
• Connectivity. Growing alongside significant e-commerce markets, we have built an

extensive network, particularly in regions historically underserved by logistics providers.
We believe we have helped promote regional and cross-regional connectivity in the
Southeast Asian markets, allowing consumers to connect globally to a broader world of
merchandise to enjoy door-to-door shipping services through our network.
• Reliability and Superior Service Quality. We strive to deliver a reliable, high-quality

shipping experience with 365-day service. We provide high-quality customer care to end
customers globally. We monitor a series of key service quality indicators to ensure, among
other things, timely delivery and responsiveness to inquiries.
• Transparency and Cost-efficiency. We offer competitive delivery fees and price

transparency upfront so that consumers can make informed decisions about the cost of
delivery. We also provide real-time updates on delivery status to senders and receivers of
packages.
• Ease of Use. We have developed multiple ordering interfaces to cater to the diverse needs
of customers. Customers can access our services from website, mobile applications, call
center and social media applications anywhere and anytime.
Value Propositions to E-commerce Platforms and Merchants
• Consumer Reach. Our broad regional and cross-regional network gives e-commerce
platforms and their merchants greater reach to consumers beyond saturated markets in
first- and second-tier cities as well as international consumers. We offer the broadest
coverage of COD services in Southeast Asia, which allows e-commerce platforms and
merchants to serve a broader range of consumers for whom online payments may not be
an option.
• Stable and Scalable Service. Leveraging our integrated network that seamlessly
connects us with our regional sponsors and network partners, we are able to handle
periodic surges in volumes requiring significant capacity. We can scale with e-commerce
and social e-commerce platforms as they grow in different regions.
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• Resources for Operation Management. We provide a centralized technology platform to

merchants on e-commerce platforms, helping them track packages in real time, manage
inventory and better understand their business operations. Our system is easy to deploy
and integrate with existing infrastructure via APIs, reducing the need for navigating
disparate systems for order management and shipping. For certain merchants not
affiliated with any e-commerce platforms and hence lack basic technology infrastructure,
they can conveniently access our system via Independent Software Vendors (ISVs) to
place delivery orders, enabling them to grow their business. According to Frost &
Sullivan, we are one of the first express delivery operators in Southeast Asia to provide
online logistics solutions to enterprise customers.
Value Propositions to Network Partners and Local Communities
• Earnings Potential and Economic Stimulus. Network partners gain access to the sheer
volume of packages delivered through our network as well as exposure to the largest
e-commerce platforms and global opportunities. We also diversify the revenue sources of
local communities by offering positions in our sorting centers, engaging pickup and
delivery personnel and collaborating with local small enterprises, convenience stores and
grocery stores to establish service stations.
• Empowerment and Inspiration. We empower our network partners with our technology
solutions, such as our digital address libraries, data management system and proprietary
waybill system, to improve their operational efficiency. We also provide our network
partners with applications that provide digital settlement solutions and manage cash flow
for delivery personnel. We also hold trainings, conferences and seminars, and sponsor
local entrepreneurial events to help inspire business ideas.
• Support during Challenging Times. We are capable of supporting local communities

during challenging times. Throughout the COVID-19 pandemic we have donated
hundreds of thousands of medical supplies and care packages throughout our regions of
operations. In 2022, we partnered with YDSF Malang to participate in the construction of
local residences after the eruption of volcano Semeru in Indonesia.
OUR REGIONAL SPONSOR MODEL
We pioneered a highly scalable regional sponsor model, and we are currently the only player
in Southeast Asia and China that has successfully adopted this model at scale, according to
Frost & Sullivan. We started in Indonesia and have since expanded our network using this
model into several other markets in Southeast Asia and China as well as Saudi Arabia, UAE,
Mexico, Brazil and Egypt, serving a geographically dispersed base of merchants and
consumers across multiple regions and enabling the growth of e-commerce.
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The diagram below illustrates our regional sponsor model:

and Culture

Highly Flexible
jurisdictions

Lower Cost
and Capital
Requirement
In each geography, our local delivery networks comprise critical facilities including sorting
centers and line haul, as well as our pickup and delivery outlets and service stations. Local
pickup and delivery outlets are typically managed either by our network partners or directly by
regional sponsors through regional operating entities. Service stations are physical presences
such as small retail stores operated by third-party small enterprises or individuals, which
typically have more limited functions and service scope compared to outlets.
As of December 31, 2022, we adopted the regional sponsor model in each of our countries of
operations with the exception of Cambodia and Singapore (where we operate the network
directly without regional sponsors). In countries where a regional sponsor model is adopted,
the proportions of outlets and service stations that are operated by network partners and those
that are directly operated by regional sponsors via regional operating entities vary based on
local circumstances. We actively monitor and adjust the mix of directly operated outlets and
network partner outlets in accordance with local performance and expansion progress in these
countries.
Advantages of Our Business Model
Our business model is highly scalable, allowing us to leverage the resources of regional
sponsors and network partners to achieve rapid expansion and deep penetration of our network.
Compared with traditional business models for express delivery services (i.e., the network
partner model and the direct operation model), we believe our business model is able to better
overcome the operational challenges during expansion.
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Our business model provides us with the following unique features that set us apart:
• Operational efficiency. We lead a pool of regional sponsors. We draw on the expertise of

regional sponsors to manage the network, while providing them with systematic and
reliable support. Regional sponsors usually invest their own capital and resources to help
the country headquarters expand the network and develop new network partners. Our
regional sponsors help local management team in each country supervise daily
performance of their respective regions and optimize the operations consistently.
We value regional sponsors who are entrepreneurial with forward-leaning spirit and
diverse backgrounds, and we have a review system that factor in regional sponsors’
contributions and investments, while balancing the dynamic process of our expansion. We
provide operational and technological support to regional sponsors by leveraging our JMS
system and the Group’s resources. We listen to and collect feedback from regional
sponsors on local operations, and we, together with our regional sponsors, design
solutions to cope with operational challenges in each market.
• Flexibility and expansiveness. Express delivery operators under the network partner
model face difficulties in locating a sufficient number of qualified network partners to
help build their network, while direct operation companies typically must invest a
substantial amount of capital in a short time to achieve adequate coverage of their
services. Leveraging our unique business model, we are not limited by the vast
differences in local operating environments across regions, as we and our regional
sponsors can decide on the optimal approach to establish local operations, including using
a mix of network partner and full direct-operation models. In some regions, regional
sponsors may also establish unconsolidated regional operating entities supported by our
critical network infrastructure and technological capabilities. As our network expands, we
and the regional sponsors adjust local operations to adapt to the evolving market demands
to maintain our sustainable growth.
• Deep insights and strong control in local operations. Our regional sponsors form the
foundation of our local operations. Our regional sponsors are knowledgeable of local
markets and aware of acute changes in their regions. Our regional sponsors also help us
manage our network partners. Regional sponsors are able to quickly respond to needs of
network partners, as well as our end customers, handle complaints, adjust pricing based
on local circumstances, and provide rewards or penalties for network partners and outlets,
among others. Through our regional sponsors, we gather first-hand feedback, design
strategies and solutions, and maintain operational excellence when launching and scaling
our network and service offerings.
• Bonding with regional sponsors. Our interests are highly aligned with those of our
regional sponsors, which incentivizes them to take ownership in local operations, tailor
and execute the Group’s overall strategies and help achieve growth. We incentivize,
supervise and provide institutional support to regional sponsors, continually building and
strengthening our bonding with regional sponsors. We supervise regional sponsors’ work
and review their performance on a regular basis with certain KPIs set by us, and we may
choose to optimize the regional sponsor team.
As a testament to our unique, effective business model, we have achieved leading positions
across Southeast Asia and China through the regional sponsor model. In Southeast Asia and
China, where other established players have been building their network, and investing in
technology and accumulating resources in the past decade, we have established ourselves as a
major player in these highly competitive markets by partnering with regional sponsors with
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local expertise and financial strengths. We entered into the China market in March 2020 and
we are the youngest among the scaled and established players – one of the very few newcomers
that successfully took a sizable share of the market from major players, according to Frost &
Sullivan. We achieved a milestone of 50 million daily parcel volume within three years, which
was the shortest period of time needed among our peers in the China market to achieve the
same scale.
In 2022, we expanded into Saudi Arabia, UAE, Mexico, Brazil and Egypt. Each of these
countries presented unique operational challenges ranging from under-developed
infrastructure, limited connectivity in certain areas, political instability to complex regulatory
regimes. Drawing on the efforts of our regional sponsors, we quickly completed market
research, navigated local environment, and formulated our operation strategies including
transportation and route planning, construction of critical network infrastructure and setup of
pickup and delivery outlets, allowing us to reach efficient scale and achieve geographic
coverage of over 90% in these countries as of December 31, 2022. We leverage our proprietary
JMS system, the backbone of our operations, to achieve efficient growth and expansion. In the
New Markets, we were generally able to set up and launch our JMS system within three
months, which allows us to build localized operations and provides indispensable support to
regional sponsors to efficiently execute our growth strategies. In particular, in May 2023, we
achieved a daily peak volume of over 630,000 parcels in Brazil. According to Frost & Sullivan,
we are the fastest to achieve such level of parcel volume among our major local peers in Brazil.
In those countries, where the e-commerce markets are significant but the express delivery
markets are highly fragmented, we are well positioned to expand in and penetrate these markets
by leveraging our regional sponsor model.
Partnership with Regional Sponsors
The strengths and uniqueness of our business model stem from the fact that we partner with
regional sponsors that assist us in operating local delivery networks in designated geographies.
Regional sponsors are individuals authorized by the Company to assist in operating local
delivery networks in their respective designated geographic regions. Under the leadership of
our country headquarters, critical parts of our network, including sorting centers and line-haul,
are operated by regional operating entities, most of which are subsidiaries or consolidated
affiliated entities within our Group. We constantly evaluate the performance of our regional
sponsors and optimize the portfolio of our regional sponsors.
Commercial arrangements among the Company and its regional sponsors vary across regions.
We align the interests of our regional sponsors, including allowing for holdings of equity
interests in the relevant operating entities and/or the country headquarters. When we enter into
a new market, we may choose to establish our regional operating entities with regional
sponsors, who may become minority shareholders in the country headquarters or regional
operating entities while we beneficially own the majority interests. Some regional sponsors
may also own all the interests in the relevant regional operating entities if it is feasible under
local laws and regulations. We refer to such entities as unconsolidated regional operating
entities. See “– Consolidation of Certain Regional Operating Entities” in this section for more
details.
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The table below sets forth the number of jurisdictions under different models of operations as
of the dates indicated:
As of December 31,
2020 2021 2022
Countries with
regional sponsors
– without Vietnam, Malaysia, the Indonesia, Vietnam, Indonesia, Vietnam,
unconsolidated Philippines, China Malaysia, the Malaysia, the
regional operating Philippines, Thailand, Philippines, Thailand,
entities(1) China China, Saudi Arabia,
UAE, Brazil, Egypt(4)
– with unconsolidated Indonesia, Thailand N/A(5) Mexico

regional operating
entities(2)
Countries without Singapore, Cambodia Singapore, Cambodia Singapore, Cambodia

regional sponsors(3)
Notes:
(1) We did not adopt unconsolidated regional operating entities in jurisdictions where such arrangement is not
practicable or feasible under local laws and regulations when we first entered into the market. During the Track
Record Period, we acquired certain unconsolidated regional operating entities. See “– Consolidation of Certain
Regional Operating Entities” in this section. For example, in China, for an express delivery service provider
to obtain a cross-provincial courier permit, it is required to set up subsidiaries or branches capable of
performing express delivery services in each relevant region (i.e., the entity that covers operations in each
region/province must be a subsidiary or a branch of the Group, instead of an independent third party).
Therefore, when we first entered into the China market, we set up various regional operating entities with
regional sponsors, who were and still are minority shareholders in such Group entities.
(2) In Indonesia and Thailand, where it practical for each regional sponsor to obtain new express delivery licenses
under local laws and regulations, regional sponsors set up multiple unconsolidated regional operating entities,
each with its own express delivery license. In 2021, we acquired the unconsolidated regional operating entities
in Indonesia and Thailand from relevant regional sponsors. For more details, see “Financial Information –
Business Combination” and “History and Corporate Structure – Major Acquisitions, Disposals and Mergers.”
(3) As the geographic regions of Singapore and Cambodia is each relatively small, the Company operates in these
regions without involving any regional sponsors.
(4) Our regional sponsors initially planned to operate in Egypt through unconsolidated regional operating entities.
However, due to regulatory compliance concerns, we and our regional sponsors decided to change this
structure soon after we launched our operations in Egypt. As such, certain unconsolidated regional operating
entities as of December 31, 2022 had subsequently been consolidated into our Group.
(5) As of December 31, 2021, we had established operating entities in each of the New Markets in preparation for
our expansion into these markets, but had not officially launched operations in these regions.
Regional sponsors invest resources into local operations in various forms, including providing
capital to regional operating entities, leveraging personal connections to navigate local
markets, and engaging network partners, who operate their own pickup and delivery outlets
and/or service stations, to expand the network. Subject to local conditions, we and our regional
sponsors may decide to directly operate all pickup and delivery outlets, engage network
partners or adopt a hybrid model that operates through both network partners and directly
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operated outlets in certain regions. The structure of operations and commercial arrangements
between us and our regional sponsors are tailored to cater to the maturity of local express
delivery markets, operational challenges specific to such regions and local laws and
regulations.
Consolidation of Certain Regional Operating Entities
During the ramp-up period when we enter into new markets, certain of the regional operating
entities, which we refer to as our “unconsolidated regional operating entities,” are wholly
owned and operated by a regional sponsor. These unconsolidated regional operating entities
operate exclusively under our “J&T” brand. We enter into cooperation agreements to allow
these unconsolidated regional operating entities to operate under our brand in their respective
jurisdictions, under which regional sponsors are allowed to use our logo, brand names and our
JMS system. Typically, we design, invest in and direct the construction of sorting centers in
these regions, and designate regional sponsors to execute sorting and transportation processes
according to our requirements and standards. Unconsolidated regional operating entities utilize
our network infrastructure such as sorting centers and line-haul when transferring parcels, and
we charge fees for the use of our infrastructure as well as other operational and system support.
Regional sponsors in charge of such entities also benefit from incentive arrangements for
achieving certain KPIs in their respective markets.
Typically, we seek to acquire from our regional sponsors their interests in these regional
operating entities in exchange for interests in our Company once we determine that such
entities have achieved certain level of business stability in their relevant market. This allows
the regional sponsors to share the success of our Group and further align our interests toward
long-term global growth. For example, in 2021, we acquired majority interests in
unconsolidated regional operating entities in Thailand and Indonesia. We do not maintain any
fixed protocol or quantitative criteria to assess potential acquisitions of unconsolidated
regional operating entities. Instead, we consider a series of factors, including, but not limited
to, parcel volume, end customer relationship, performance of network partners, and operating
results, among others, to assess business stability in a certain market.
Role of Regional Sponsors
Regional sponsors work with our country headquarters to execute our strategies in the various
markets of operations. Regional sponsors, whether they operate through consolidated or
unconsolidated regional operating entities, play equally critical roles in our business
operations, and network expansion. In areas where network partners are engaged, regional
sponsors identify, engage and manage network partners through the relevant regional operating
entities. In certain locations, regional operating entities also manage the directly-operated
pickup and delivery outlets and service stations.
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The table below set forth a summary of the key functions of our regional sponsors:
Role of Regional Sponsors
Setup and management Regional sponsors help execute regional strategies by assisting in
of sorting centers and the setup and management of sorting centers, line-hauls and
logistics network personnel, among others.
Sales and marketing Regional sponsors conduct regional sales and marketing activities.
In applicable regions, regional sponsors provide assistance,
guidance and training in sales and marketing to network partners.
Setup of outlets Where applicable, regional sponsors are tasked with finding and
leasing space for local delivery outlet operations and hiring staff.
In applicable regions, regional sponsors designate areas of
operations for network partners.
Customer services Regional sponsors help manage customer service enquiries within
the region when needed and provide systematic trainings to
network partners and/or other staff in connection with our business
operations.
KPI and execution In applicable regions, regional sponsors set KPIs for network
partners and supervise their performance and execute rewards and
penalties.
Role of Country Headquarters
Our country headquarters implement global strategies set by our senior management. While
regional sponsors carry out granular ground work, our country headquarters, guided and
supported by our senior management and group functional departments, make operational
decisions and take actions considering market conditions, market practices and our partners in
each market. Our country headquarters also measure the progress of our development and are
able to adjust their approach based on local dynamics.
The table below set forth a summary of the key functions of our country headquarters:
Network planning Our country headquarters plan for geographic locations of sorting
centers, line-haul routes and optimal network capacity. Our
country headquarters also constantly monitor and adjust our
network density based on network performance and historical
trends of parcel volumes.
Network setup Our country headquarters are typically in charge of procuring

line-haul vehicles, and establishing and constructing major sorting
centers.
Pricing guidelines Our country headquarters set pricing guidelines based on market
demand, seasonality, operational costs, and others.
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Technology Our country headquarters operate, maintain and upgrade the

infrastructure technology system for daily operations.
Partnership and Our country headquarters leverage resources to develop and

customer relations maintain customer relationship and strategic partnerships. Our
country headquarters negotiate commercial terms with these key
stakeholders, and provide centralized, standardized customer care
to them.
KPI and supervision Our country headquarters supervise and provide guidance to
regional sponsors in key aspects of operations. Our country
headquarters set KPIs to regional sponsors and provide regional
sponsors with feedback to enhance their management of local
network partners.
Identifying Regional Sponsors
Our founder, Mr. Li, through continued success in entrepreneurship in Southeast Asia and
China, has developed relationships with an extensive network of entrepreneurs. These
entrepreneurs typically have been successful in prior business endeavors, have often had prior
experience in logistics management and are familiar with our business model. Capitalizing on
these relationships and Mr. Li’s valuable experience as a serial entrepreneur, as well as the
shared business success and mutual trust developed through previous partnerships with other
entrepreneurs, we are able to identify individuals who are willing to join hands with us and act
as regional sponsors. The selected regional sponsors are individuals with successful business
experience, entrepreneurship and oftentimes strong financial capabilities. They help address
operational challenges specific to each market with our support and are our culture carriers that
embrace our “Ben Fen” (本分) culture. Importantly, our regional sponsors typically have an
international outlook and are willing to build up our network in new geographic locations, not
limited to their country of origin.
In addition to the initial pool of regional sponsors, we may also consider individuals within our
network, such as successful network partners or employees, who demonstrate vision and
leadership, to act as our regional sponsors for our future expansion. Therefore, we have a
self-sustaining pool of potential regional sponsor candidates as we continue to grow our
network.
Our regional sponsors typically do not own express delivery businesses prior to becoming our
regional sponsors. Historically, except for our acquisitions, we built our local network
organically from scratch with our regional sponsors in relevant markets. For regional sponsors
who have demonstrated their ability in running critical operations, we also consider deploying
them to new markets.
Through years of collaborating with regional sponsors and successfully expanding our global
network, we have amassed deep know-how with respect to effective management of regional
sponsors and network partners which can only come with years of experience. Regional
sponsors maintain long-term cooperation with us to grow and share successes in local markets,
and we provide institutional support for regional sponsors as they seek to help us expand local
network and our cross-border operations.
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Incentives to and Evaluation of Regional Sponsors
Regional sponsors typically invest their resources in local operations and, as stakeholders of
local operations, they are incentivized to continually invest when needed, optimize local
operations, and provide trainings to network partners, so as to drive our overall growth. We
compensate and incentivize our regional sponsors through various incentive arrangements that
align the interests and enable efficient growth of the larger group despite complex and diverse
market dynamics across different regions. We evaluate regional sponsors’ performance on a
regular basis with certain KPIs set by our country headquarters. These KPIs include but are not
limited to indicators such as on-time delivery rate, on-time transit rate, on-time package signoff
rate, lost parcel rate, damaged parcel rate and complaint rate that measure their results of
operations and service quality, and are determined based on local market conditions, historical
performance and other factors. In recognition for committing significant capital and taking on
commercial risks associated with establishing a presence in new locations, regional sponsors
are entitled to discretionary awards or bonus upon completing these KPIs. Discretionary
awards or bonus to regional sponsors are based on (i) the maturity of the local network,
including any ramp-up period, and operational difficulties within an operating region, (ii) the
overall KPIs within an operating region, (iii) the parcel volume and profitability of network
partners in the operating region, and (iv) the contribution to the overall cost-effectiveness of
the overall network and cooperation with other regional sponsors in connection with the
optimization of cost structure of the regional operating entities. We may also, from time to
time, optimize the regional sponsor team to drive greater operational efficiency and to adjust
to market dynamics.
Role of Network Partners
Our network partners are typically local logistics companies that operate in a specified region,
operate their own facilities and perform first-mile pickup and/or last-mile delivery.
We consider network partners who signed cooperation agreements with us as part of our
customer group, as our regional operating entities provide parcel sorting and line-haul services
to them and collect fees from them for use of our network. Such network partners also act as
our suppliers when they fulfill last-mile deliveries.
Network partners enter into cooperation agreements with us or regional operating entities,
pursuant to which the network partners are authorized to carry out part of the express delivery
business under the “J&T” brand within a designated geographic region. Historically, we
collaborated with unconsolidated regional operating entities in Indonesia and Thailand to
manage network partners. Network partners in those jurisdictions typically signed
collaboration agreements with these unconsolidated regional operating entities. These
cooperation agreements contained substantially the same terms as our cooperation agreements
with other network partners. Below are some of the key terms of our cooperation agreements
with network partners:
• Fees. Pursuant to our cooperation agreements with network partners, we collect fees from
the network partners for the use of our delivery network. These fees are variable and
based on guidelines, local market conditions and government guidance, where applicable.
We also pay pickup and/or delivery fees to our network partners for the services fulfilled
through their pickup and/or delivery outlets.
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• Business operations. Our cooperation agreements with network partners assign specific
geographic regions of operations for each network partner which vary in size depending
on the capabilities of the network partner and the needs of our network, including
business volume. Our network partners also have access to our proprietary software that
is designed to be used by network partners and their delivery personnel and link them to
our system.
• Pricing. Network partners are free to determine the customer-facing price, taking into
account the service fee collected by the regional operating entity, the network partner’s
own operating costs and our guidance.
• Term. The cooperation agreements with network partners are generally for a term of one
or two years and each network partner may elect to negotiate with us for renewal of the
agreement upon expiration.
• Deposit. Network partners are required to place deposits with us as a performance

guarantee.
• Termination. The cooperation agreements can be terminated upon mutual agreement or by

either party with prior notice after the occurrence of certain events including, but not
limited to, one party’s failure to perform certain contractual obligations.
• Service quality. To ensure the performance and service quality of our network partners,
the cooperation agreements also set out terms such as operation process, service standards
and quality, maintenance and settlement. For example, our regional sponsors oversee the
performance of our network partners, set performance targets and provide them with
training. In practice, we review their key performance indicators through our systems so
that our regional sponsors can help them improve operational performance. If there is a
material violation of our operational standards by network partners, we are entitled to
request such network partners to suspend business and rectify accordingly. We also have
the right to impose monetary penalties according to the policies imposed by the relevant
regional operating entities on our network partners for failure to adhere to the terms of
the agreements.
Detailed terms of cooperation agreements with network partners – including whether an

exclusivity clause exists – vary by jurisdiction to accommodate varying laws, regulations and
market practices. For example, in Thailand and China, network partners also make advance
payments to us, which would be deducted for services we provided to them. During the Track
Record Period, we entered into cooperation agreements with exclusivity clauses with network
partners in certain jurisdictions such as Indonesia, Thailand and China. In other jurisdictions,
the cooperation agreements by and between the Group and network partners typically did not
contain an exclusivity clause.
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OUR GLOBAL FOOTPRINT
China
2020
Thailand
2019 Mexico
2022
2022 2019
Brazil
2022 2019 2018

2022 2020
Indonesia Malaysia
2015 2018
Note: Labeled according to year of entry into each market.
Our express delivery operations span 13 countries, covering seven countries across Southeast
Asia, including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia and
Singapore, and China, as well as other markets, including Saudi Arabia, UAE, Mexico, Brazil
and Egypt. We first started building our express delivery network in 2015 when we commenced
operations in Indonesia, a large archipelago whose more than 17,000 widespread and often
remote islands present significant operational challenges to logistics service providers. We
entered Vietnam and Malaysia in 2018 and further expanded to the Philippines, Thailand and
Cambodia in 2019 and Singapore in 2020. In March 2020, bringing our experience from
Southeast Asia, we entered into the China market. In 2022, we further tapped into Saudi Arabia,
UAE, Mexico, Brazil and Egypt to replicate our success. We have also quickly achieved a
geographic coverage of over 90% in the New Markets.
Today, our massive global network connects us with local communities, e-commerce platforms
and consumers we serve every day. We now have full network coverage across the seven
Southeast Asia countries and over 98% of all counties and districts in China. For example, in
Indonesia and the Philippines, our express delivery network has achieved the highest network
coverage scores among our major competitors in these two markets according to the consumer
survey conducted by Frost & Sullivan. As of December 31, 2022, our network consisted of
approximately 9,600 network partners, 280 sorting centers and over 8,100 line-haul vehicles,
including more than 4,020 self-owned line-haul vehicles with approximately 3,800 line-haul
routes.
We have achieved leading industry positions in the express delivery markets in Southeast Asia
and China through rapid growth. In addition, our market share increased from 2.5% in 2020 to
10.9% in 2022 in China by parcel volume according to Frost & Sullivan. We are also the first
Asian express delivery operator of scale to have expanded into Saudi Arabia, UAE, Mexico,
Brazil and Egypt, according to Frost & Sullivan, supporting our partners as they expand into
new markets.
We will continue to expand our global network. We believe our expansion will lower our costs
by increasing density in our pickup-and-delivery operations, thereby accelerating our growth.
Our regional hubs and facilities will serve as a gateway for local and international operations,
thereby allowing us to continue to better serve our customers.
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OUR SERVICES
Through our network and together with our regional sponsors and network partners, we provide
express delivery services and cross-border services. Our services in each geographic region are
customized based on local needs. For example, in Indonesia we offer J&T Super, our priority
service, to deliver time-sensitive parcels to even the most remote islands in the country. We
mainly provide express deliveries of parcels weighing under 20 kilograms with expected
delivery time ranging from 24 to 72 hours.
Express Delivery Process
The following diagram illustrates the process for the completion of typical domestic express
delivery orders:
Pickup Sorting and Transportation Delivery
Regional
Sponsors
Network Partners
Gross Service Fee Delivery

2 Transit 3 Fee
Through
Fee
1 Pickup Fee Network Partners Regional Operating Entities Network Partners
Delivery
2 Transit Fee 3
Fee
3 Delivery Fee
Transportation
Senders Pickup Outlets Regional Destination Delivery Outlets Recipients

Direct Operation
Sorting Centers Sorting Centers

1 Pickup Fee
Through
2 Transit Fee
3 Delivery Fee
Fund Flow
Regional
Gross Service Fee
Sponsors Parcel Flow
Regional Operating Entities Fee in red J&T’s revenue
Step 1: Parcel Pickup. Senders can request pickup services. Pickup outlets or service stations
in our network arrange for couriers to collect the parcels from the senders once they receive
a delivery order. Alternatively, senders can drop off parcels at our pickup outlets or service
stations that provide first-mile pickup services. The parcels are then collected and sent to the
regional sorting centers. Through each waybill, we assign a unique tracking number and
corresponding barcode to each parcel. The waybills, coupled with our automated systems,
allow customers to track the status of each individual parcel throughout the entire pickup,
sorting and delivery process.
Step 2: Parcel Sorting and Transportation. Upon receipt of parcels shipped from various pickup
outlets and service stations within its coverage area, the regional sorting center sorts, further
packs and dispatches the parcels to the destination sorting center through line-haul as well as
air and sea transportation services as applicable. A number of outlets in our network are also
capable of high-speed sorting and other centralized functions. Barcodes on each waybill
attached to the parcels are scanned as they go through each sorting center so that we can keep
track of the service progress.
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Step 3: Parcel Delivery. The destination sorting center unloads and sorts the parcels before
sending the parcels to local delivery outlets or service stations in preparation for last-mile
delivery to the recipients via couriers. Once the recipients sign on the waybill to confirm
receipt, a full service cycle is completed and the settlement of the delivery service fee promptly
ensues on our network payment settlement system. During the ramp-up period, we may also
engage third party service providers to fulfill delivery obligations in certain areas before our
local network reaches efficient scale.
Cross-border Service Process
In order to meet the strong demand for cross-border e-commerce transactions, we currently
provide comprehensive cross-border services to e-commerce platforms, merchants and
consumers through our own cross-border network. The following diagram illustrates the key
components and steps of our cross-border network:
Country of Origination Country of Destination
Onshore Corporates/ Custom Custom Offshore

Freight Owners Clearance Clearance Corporates/Carriers
(Onshore) (Offshore)
2 4
Pickup Cargo Space Shipment Sorting
& Booking & through Carriers &
Sorting Coordination by Air, Sea, etc. Delivery
Onshore Destination
Warehouse warehouse
Onshore E-commerce Offshore
Sellers/Senders Consumers
Based on our comprehensive cross-border network empowered by both our domestic express
delivery capabilities and partnerships with other commercial partners, we offer the cross-
border services below (each process labeled with its corresponding number in the diagram
above):
(i) Cross-border small parcels, which includes (i) a door-to-door express service typically
for e-commerce platforms and merchants covering pickup and sorting in the country of
origin (step 1), custom clearance (step 3), shipment (step 4), all the way to sorting and
delivery in the country of destination (step 5), and (ii) transshipment service for
individual consumers covering consolidating e-commerce parcel in our warehouses (step
6), transshipment (step 4) and delivery in the country of destination (step 5);
(ii) Cross-border freight forwarding, which primarily includes cargo space booking and
coordination (step 2), custom clearance (step 3), and shipment through carriers by air or
sea (step 4); and
(iii) International warehousing solutions, which are integrated warehousing services mostly
for e-commerce platforms and merchants with our self-operated warehouses (step 6).
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BUSINESS
Our cross-border services are seamlessly integrated with our local logistics network and
infrastructure. For example, in the situation of cross-border parcels, our domestic express
delivery services or our commercial partners within the country of origin will deliver parcels
to the port of origin, after which we will ship the parcels to the port of destination via aircraft
or arrange for stowage on other transport for shipping. Upon arrival at the port of destination,
our local teams will assist with the customs clearance process, after which our domestic
express delivery services or our commercial partners within the country of destination will
complete the parcel delivery to the recipient.
Service Pricing
Pricing for express delivery services is generally determined based on parcel size and weight,
shipping distance and speed of service. Pricing for cross-border services is based on similar
factors, as well as mode of transport. Such prices are determined dynamically according to
market conditions and standards for each geography, operating costs and network load.
In regions where local outlets are operated by our network partners, the regional operating
entity collects fees from the network partner for the use of our delivery network. Such fees are
based on local market conditions and standards where applicable. The network partner is free
to determine the customer-facing price under our guidance and market conditions, taking into
account their own operating costs. By giving our network partners latitude in pricing, they are
able to effectively respond to competitive dynamics in their local markets and business volume.
We believe this model leverages our network partners’ entrepreneurship and insights in local
markets, which strengthens our network.
In connection with services we provide to our e-commerce platform partners and corporate
customers, we may also provide certain volume discounts to them.
BUSINESS SUSTAINABILITY
According to Frost & Sullivan, we are the number one express delivery operator in Southeast
Asia by parcel volume in 2021 and 2022, with a market share of 22.5% in 2022, and we are
one of the top players in China with a 10.9% market share by parcel volume for 2022. In 2022,
we further expanded into new markets including Saudi Arabia, UAE, Mexico, Brazil and
Egypt. During the Track Record Period, we incurred gross loss, operating loss and net
operating cash outflow. Excluding the impact from fair value gain of financial liabilities at fair
value through profit or loss, we had adjusted loss for each period during the Track Record
Period.
The table below sets forth a breakdown of our revenue by geographic segment, in absolute
amount and as a percentage of our total revenue, for the periods indicated.

2020 2021 2022
US$ % US$ % US$ %
Southeast Asia . . . . . . . . . . . . 1,046,504 68.1 2,377,544 49.0 2,381,726 32.7

China. . . . . . . . . . . . . . . . . . 478,847 31.2 2,181,368 45.0 4,096,177 56.4
Others (1) . . . . . . . . . . . . . . . . 10,074 0.7 292,888 6.0 789,525 10.9
Total . . . . . . . . . . . . . . . . . . 1,535,425 100.0 4,851,800 100.0 7,267,428 100.0
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BUSINESS
Note:
(1) Includes revenue from our cross-border services and revenue from express delivery services in other regions.
Our total revenue grew from US$1.5 billion in 2020 to US$4.9 billion in 2021, and further to
US$7.3 billion in 2022. Our revenue from Southeast Asia grew at a CAGR of 50.9% from 2020
to 2022, and our revenue from China grew at a CAGR of 192.5% during the same period. As
we have been expanding our operations to new markets and enriching our service offerings, our
revenue from New Markets and cross-border services grew from US$10.1 million in 2020 to
US$292.9 million in 2021, and further by approximately 169.6% to US$789.5 million in 2022.
The following table sets forth our gross profit/(loss) and (negative) gross margin by geographic
segment for the periods indicated.

2020 2021 2022
(Negative) (Negative) (Negative)
Gross profit/ Gross Gross profit/ Gross Gross profit/ Gross
(loss) margin (loss) margin (loss) margin
US$ % US$ % US$ %
Southeast Asia . . . 311,953 29.8 662,131 27.8 476,002 20.0

China. . . . . . . . . (576,734) (120.4) (1,218,693) (55.9) (664,760) (16.2)
Others(1) . . . . . . . 3,293 32.7 11,818 4.0 (81,480) (10.3)
Total . . . . . . . . . (261,488) (17.0) (544,744) (11.2) (270,238) (3.7)
Note:
(1) Includes revenue from our cross-border services and revenue from domestic express delivery services in other
regions.
We had a gross loss of US$261.5 million, US$544.7 million and US$270.2 million in the years
ended December 31, 2020, 2021 and 2022, respectively. Our negative gross margin narrowed
from 17.0% in 2020 to 11.2% in 2021, and further to 3.7% in 2022, reflecting the improved
network effects of our global operation and economies of scale, and demonstrating a clear
trajectory of profitability improvement. We achieved gross profit in Southeast Asia during the
Track Record Period. Specifically, we had a gross profit in Southeast Asia of US$312.0 million
in 2020, US$662.1 million in 2021 and US$476.0 million in 2022, respectively. Our gross
margin in Southeast Asia was 29.8%, 27.8% and 20.0% in the years ended December 31, 2020,
2021 and 2022, respectively. The decline in gross margin from 2020 to 2021 was mainly due
to the change of service scope after our acquisition of unconsolidated regional operating
entities in Indonesia and Thailand in 2021, after which we started to incur line haul costs and
fulfillment costs previously borne by the then unconsolidated regional operating entities. The
decline in gross margin from 2021 to 2022 was mainly due to (i) our strategic pricing
adjustment for certain e-commerce platform customers to reinforce our relationship with them,
(ii) generally increased costs due to inflation, and (iii) increased costs in relation to new
customer relationship acquisition.
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BUSINESS
In China, we had a gross loss of US$576.7 million, US$1,218.7 million and US$664.8 million
in the years ended December 31, 2020, 2021 and 2022, respectively. Our negative gross margin
in China narrowed from 120.4% in 2020 to 55.9% in 2021, and further to 16.2% in 2022,
demonstrating a significant improvement in our margins from 2020 to 2022. Our historical
loss-making positions in China were primarily attributable to our continued investments in
technology infrastructure, scale and expansion. Capitalizing on such investments, we have
grown rapidly in China since our entry into the market in March 2020, achieving significant
growth in parcel volume and market share during the Track Record Period. In China, we
handled 12,025.6 million parcels in 2022, representing a market share of 10.9% by parcel
volume in 2022. We have built a vast network of regional sponsors, network partners and end
consumers, becoming one of the very few newcomers in the industry that successfully took a
sizable share of the market from major players. From the fourth quarter of 2020 to the fourth
quarter of 2022, we were the fastest-growing express delivery operator in China among major
players, as well as the fastest among our peers in China to achieve a scale of 50 million peak
daily parcel volume, according to Frost & Sullivan.
For others, namely, our cross-border and New Markets operations, we had a gross loss of
US$81.5 million in 2022, compared to gross profits in 2020 and 2021, as we tapped into the
New Markets and continued to expand our cross-border operation in 2022. We expect to
continue to selectively invest in our cross-border operations and ramp up our operations in New
Markets.
Despite our continuous growth in revenue and volume and our narrowing negative gross
margin from 2020 to 2022, we incurred operating losses and net operating cash outflow, mainly
due to the gross loss incurred in our operations in China during each period of the Track Record
Period and to a much lesser extent, cross-border and New Markets business in 2022.
In the long term, to continue to realize our revenue potential and achieve profitability, we plan
to further (i) grow our parcel volume, (ii) maintain a flexible pricing strategy, (iii) control costs
and narrow gross loss and margin, and (iv) enhance operating leverage.
Grow our parcel volume and market share
We focus on growing our parcel volume to solidify our market share and leading market
positions through expanding network coverage, enriching and enhancing our service offerings
and strengthening our relationships with e-commerce partners. Our global annual parcel
volume in 2022 was 14.6 billion, representing a CAGR of 112.3% from 3.2 billion in 2020.
The table below illustrates the growth in our parcel volume in our regions of operations over
the Track Record Period.

2020-2022
2020 2021 2022 CAGR
(in millions)
Southeast Asia . . . . . . . . . . . . . . . . . . 1,153.8 2,160.8 2,513.2 47.6%

China. . . . . . . . . . . . . . . . . . . . . . . . 2,083.5 8,334.3 12,025.6 140.2%
We will continue to grow our parcel volume and enlarge the scale of our platform. The
increased parcel volume will increase utilization of our critical facilities, including sorting
centers and line hauls, and improve the efficiency of our resources.
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BUSINESS
Maintain flexible pricing strategy
During the Track Record Period, we also adjusted pricing of our services based on the
competitive landscape and operations across the markets in which we operated, which has
resulted in changes in our average revenue per parcel during such period. The table below
illustrates the average revenue per parcel in Southeast Asia and China over the Track Record
Period as a result of our pricing strategy.

2020 2021 2022
(US$, per parcel)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . . 0.91 1.10 0.95

China. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.23 0.26 0.34
Our revenue per parcel in Southeast Asia during the Track Record Period was affected by a mix
of factors, including (i) the impact of foreign exchange rates, given that we operate across
markets using different currencies, (ii) our acquisition and consolidation of the SEA entities to
expand the scope of our services and, improve service quality, and (iii) our strategic pricing
adjustment in 2022 to stay competitive in Southeast Asian markets and acquire new customer
relationships. Leveraging our dominant market leading positions, extensive network and
mature infrastructure in Southeast Asia, we will be able to maintain an adaptive and flexible
pricing strategy while growing our parcel volume and increasing market share.
Our revenue per parcel in China increased during the Track Record Period due largely to our
expansion of our network in China and adjustment of pricing terms based on market conditions.
We have commenced to serve a wide range of end customers including end customers of higher
quality through additional e-commerce platform partners. As we continue to improve service
quality, attract these end customers and help network partners improve their results of
operations, we expect to maintain and improve our pricing terms.
Control costs and improve gross margin
Our negative gross margin was 17.0%, 11.2% and 3.7% in 2020, 2021 and 2022, respectively.
Our gross loss in China and, to a much lesser extent, our expansion into the New Markets and
cross-border business, contributed to our overall gross loss during each period of the Track
Record Period, as we were still in the process of ramping up our business operations in those
markets. However, our gross loss has narrowed and our negative gross margin has improved
since 2020, primarily due to optimization of our operation, manifested by a decrease in average
cost per parcel in China. Our average cost per parcel in Southeast Asia experienced certain mild
fluctuations in 2021 due to our acquisition of certain unconsolidated regional operating entities
in Southeast Asia, which changed our cost mix in Southeast Asia. However, our average cost
per parcel was otherwise generally stable despite a slight decrease in 2022. The table below
illustrates the average cost per parcel in our geographical segment during the Track Record
Period:

2020 2021 2022
(US$, per parcel)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . . 0.64 0.79 0.76

China. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.51 0.41 0.40
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BUSINESS
Utilizing our regional sponsor model, we rapidly scaled our business operations and our parcel
volume experienced significant growth during the Track Record Period. With higher utilization
rates resulted from increased parcel volume flowing through our sorting centers and
transportation network, we can achieve greater operational efficiency and lower fulfillment
costs going forward. In Southeast Asia, we expect the cost per parcel to decline as we continue
to improve our technology system and optimize our operations. In China, we will continue to
achieve better economies of scale as our parcel volume increases.
Enhance operating leverage
Our selling, general and administrative expenses primarily consist of employee benefits,
including salaries and bonus, share-based compensation expenses related to employee benefits
and share-based payments related to equity transactions. As our business scales and expands,
we expect these expenses, excluding share-based payments and expenses, as a percentage of
our revenue, to decline as the relevant headcounts and compensation may not grow
proportionally with revenue. The table below illustrates our selling, general and administrative
expenses, excluding share-based payments in relation to equity transactions, share-based
compensation expenses, and impairment of goodwill, which are not directly related to our daily
operations, as a percentage of our revenue.

2020 2021 2022
As percentage of our revenue (%)
Selling, general and administrative expenses . . . . . . . . 23.8 23.3 15.1

Selling, general and administrative expenses
(excluding share-based payments and expenses and
impairment of goodwill)(1) . . . . . . . . . . . . . . . . . 11.6 10.5 9.6
Note:
(1) Exclude the share-based payments and expenses of US$188.3 million, US$619.0 million and US$281.4 million
in 2020, 2021 and 2022, respectively.
As we further expand our global footprint and solidify our brand recognition, we expect our
selling, general and administrative expenses as a percentage of our revenue to gradually
decline in the medium to longer term.

2020 2021 2022
(in US$ thousands)

Add
Fair value change of financial assets and liabilities
at fair value through profit or loss . . . . . . . . . . . . – 4,383,532 (3,050,694)
Finance income . . . . . . . . . . . . . . . . . . . . . . . . . (1,965) (9,476) (22,002)
Finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,831 99,077 99,499
– 178 –
BUSINESS

2020 2021 2022
(in US$ thousands)
Adjusted EBITDA . . . . . . . . . . . . . . . . . . . . . . . (321,163) (528,131) (204,442)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . 266,561 427,436 331,582

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (616,227) (939,695) (334,906)
Others(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,652 (14,028) (168,789)
Un-allocated(4) . . . . . . . . . . . . . . . . . . . . . . . . . 26,851 (1,844) (32,329)
Notes:
As a result, we recorded negative adjusted EBITDA of US$321.2 million, US$528.1 million,

and US$204.4 million, for the year ended December 31, 2020, 2021 and 2022, respectively, and
adjusted loss of US$475.9 million, US$911.3 million, and US$798.6 million, for the
corresponding periods, respectively.
In summary, we had gross loss, negative adjusted EBITDA, and adjusted loss in 2020, 2021 and
2022, as we focused on long-term growth strategies such as enhancing our leading positions in
Southeast Asia and China, growing our market share in core markets, expanding our
geographic coverage and logistics network and investing in technology, talent, customer
service and environmental sustainability. Upon the successful implementation of the
aforementioned measures to achieve profitability and grow our scale, we believe that we are
able to pave the way for long-term business sustainability.
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BUSINESS
OUR INFRASTRUCTURE
Sorting centers and warehouses
Our sorting centers are connected by the line-haul transportation network that we operate. They
collect parcels from outlets and service stations within their respective coverage area, sort them
according to their destinations and dispatch them to the destination sorting centers. As of
December 31, 2022, our express delivery network had 280 sorting centers in operation. The
following map shows our network of sorting centers and warehouses in operation as of
December 31, 2022.
China
The Netherlands 81 sorting centers
United States
1 offshore warehouse
1 offshore warehouse
Egypt
1 sorting center Mexico
Southeast Asia 15 sorting centers
165 sorting centers
13 offshore warehouses
UAE Brazil
1 sorting center 14 sorting centers
Saudi Arabia
3 sorting centers
Countries where J&T has local operations as of Dec 31, 2022

Other destination countries for J&T’s cross-border business
Our centralized planning team coordinates the development of new hubs and the expansion of
existing ones in aspects including site selection, facility layout design and equipment purchase.
We consider adding new sorting centers to our network if they can optimize our routes or
increase our capacity in the surrounding areas. We select sites with convenient access to major
highways to improve efficiency and reduce cost. We design new sorting centers with their
expected growth in mind and build in extra capacity for volume growth in the foreseeable
future. We equip our hubs with sorting and loading equipment that best fits our needs.
We believe that our sorting centers are among the most efficient in the markets where we
operate. We employ automated sorting machines at certain critical high-volume sorting centers
capable of scanning up to approximately 88,000 packages per hour at peak volume, and
intelligent scanning, which feeds data into our tracking system, greatly reduces reliance on
manual labor, lowers operating cost and shortens delivery times. As a testimony of our success,
in 2020, we won the Indonesia Digital Innovation award for our sorting centers in Jakarta,
Indonesia, which allowed us to increase sorting capacity from approximately 180,000 packages
per day to approximately 460,000 packages per day. We are also in the process of building
customized integrated logistics centers, upgrading our sorting centers through a combination of
renovation and self-construction. These customized integrated logistics centers combine
functions of warehouses and sorting centers with other functions including after-sale services.
Designed to optimize storage, sorting and transportation efficiency, these customized logistic
centers are expected to further expand our network capacity and resilience. Our customized
integrated logistics centers are equipped with diverse functions including storage, parcel
– 180 –
BUSINESS
sorting, parcel transportation and other after-sale services. Our waybill tracking system
monitors the status of parcel movement and enables us to identify centers with the need for
additional investment or resource allocation to increase sorting speed. We continue to upgrade
and optimize operations of our sorting centers and further expand our network capacities.
When planning routes, we prioritize the efficiency of the entire network over the interest of any
individual regional sponsor or network partner. We dispatch each parcel to the sorting center
closest to its destination even if the sorting center and the destination are located in different
administrative regions. This greatly reduces transportation time and lowers our transportation
cost. Our seamless route planning and management benefit from our experience accumulated
through years of optimization and the support of our information technology infrastructure,
which enables dynamic tracking and monitoring of parcel movement.
Transportation network
Given that we operate in multiple countries, each with unique local transportation
environments, we have set up a large, diversified and multimodal transportation network
tailored to local market requirements. Our sorting centers were connected by over 1,100 and
over 2,500 well-planned line-haul routes in Southeast Asia and China, respectively, as of
December 31, 2022. We utilize a self-owned fleet as well as third-party transportation service
providers to form our line-haul transportation network responsible for the transportation of
parcels between sorting centers. We control the line-haul route planning and vehicle dispatch
of our entire line-haul transportation system. Leveraging our centralized transportation
management system, we plan our routes to achieve lower transportation cost and shortened
transit time. Our fleet consisted of more than 1,170 and 2,850 self-owned line-haul vehicles in
Southeast Asia and China, respectively, as of December 31, 2022.
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BUSINESS
We enhance our fleet with a suite of intelligent safety systems aided by multiple cameras which
include collision warning, lane departure, pedestrian detection and automatic reporting of
incidents through photos and video recordings. We also employ in-vehicle cameras to detect
driver fatigue and dangerous driving behaviors and prompt the driver in real time. We have a
centralized team responsible for monitoring conditions of our fleet in real time. We also offer
multiple safety-themed training activities throughout the year covering defensive driving,
weather safety, accident case studies and other topics.
We also contract for air and sea shipping for our cross-border services as well as shipping
across Indonesia and the Philippines. We strategically maintain access to third-party operators
in order to have the flexibility to expand our total fleet during demand peaks in connection with
certain seasonal shopping events.
Pickup and delivery outlets and service stations
As of December 31, 2022, we had more than 21,000 pickup and delivery outlets in our network,
of which over 15,300 pickup and delivery outlets were operated by our network partners and
over 5,600 pickup and delivery outlets were operated by our regional operating entities. We
also had multiple service stations within our network in Southeast Asia, which are typically
collection points in convenience stores, grocery stores or other local shops with more limited
functions than our pickup and delivery outlets. Each outlet and service station has its own
designated geographical scope of operation and can generally only take orders generated within
that area. We closely monitor the performance of outlets in our network and provide incentives
to our regional sponsors and network partners to optimize performance.
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BUSINESS
CUSTOMERS
For our express delivery and cross-border services, our customers include our network
partners, e-commerce platforms, certain enterprise and individual customers, as well as our
unconsolidated regional operating entities. For our cross-border services, our customers also
include freight forwarders who place orders on behalf of their end customers.
We consider our network partners as part of our direct customer group, as our regional
operating entities provide parcel sorting and line-haul services to them and collect fees from
them for use of our network.
We also directly serve e-commerce platforms, other enterprise customers and individuals. We
collect the entire amount of delivery service fees from these direct customers and pay fees to
our network partners for their first-mile pickup and/or last-mile delivery services. For certain
direct customers, we provide direct pickup and/or delivery services ourselves without the
services provided by our network partners, depending on the availability and capacity of our
directly operated outlets at the relevant locations.
In addition, we consider the unconsolidated regional operating entities, which are owned and
operated by regional sponsors during the ramp-up period, our customers until we acquire
majority interests in them.
Many end customers are not our direct customers. Instead, they are customers of our network
partners or unconsolidated regional operating entities. Such end customers primarily include
merchants or individual shoppers on e-commerce platforms.
The following chart illustrates our direct and end customers for an express delivery parcel.
E-commerce Consumers
Regional
Sponsors Recipients
Regional Operang Enes Non E-commerce Recipients

(Enterprises, Individual)
Sorng Transportaon Sorng

Centers Centers
Direct Customers
Network Partners
E-commerce
Plaorms
Other Key Accounts

(Enterprises,
Individuals)
End Customers
Non E-commerce Senders

E-commerce Merchants
(Enterprises, Individual)
Fund Flow
Parcel Flow
Note:
(1) During the ramp-up period, we also consider the unconsolidated regional operating entities, which are owned
and operated by regional sponsors, our customers. The fund flow and parcel flow mechanism, whether a
regional operating entity is consolidated or not, is the same.
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BUSINESS
During the Track Record Period, we generated a substantial portion of our revenue in Southeast
Asia from e-commerce platforms who are our direct customers. Due to market practice in
Southeast Asia, e-commerce platforms typically have significant influence over the shipping
method for items sold on their platforms and therefore enter into agreements with express
delivery service providers directly to purchase the express delivery services in bulk. For
e-commerce platforms that collaborate with us in different Southeast Asian countries, we
typically negotiate and enter into agreements separately and independently for the operations
in each country.
Our direct customers in China are primarily our network partners. Unlike in Southeast Asia,
e-commerce platforms in China are not our direct customers. As express delivery services and
the e-commerce industry are highly developed and standardized in China, e-commerce
platforms in China typically allow merchants to choose their preferred express delivery service
providers from a list of service providers connected to such platform. Therefore, express
delivery service providers establish partnerships with e-commerce platforms by becoming
permitted service providers, gaining access to merchants and orders on the platforms. In 2020,
2021 and 2022, our top five customers contributed to 44.6%, 39.4% and 25.7% of our total
revenue, respectively. For the same periods, our largest customer, an e-commerce platform,
contributed to 35.4%, 35.4% and 16.9% of our total revenue, respectively. The following tables
set forth details of our five largest customers during the Track Record Period:
For the year ended December 31, 2020
Year of
Principal starting
business and business Percentage Typical
Services background of relationship Revenue of our total credit
Customer provided by us the customer with us contributed revenue period
(in US$
thousands)
Customer A . . . Express delivery E-commerce 2017 542,963 35.4% within 30

and cross-border platform days
services
Customer B (1) . . Express delivery Express delivery 2016 74,767 4.9% 30 days
service
Customer C . . . Express delivery Express delivery 2020 27,993 1.8% upfront

service payment
Customer D(1) . . Express delivery Express delivery 2015 21,247 1.4% 30 days
service
Customer E(1) . . Express delivery Express delivery 2015 18,118 1.2% 30 days
service
Note:
(1) A SEA entity that has been acquired and consolidated into our Group in 2021. See “History and Corporate
Structure – Major Acquisitions, Disposals and Mergers” and “Financial Information.”
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BUSINESS
Year of
Principal starting
(in US$
thousands)
Customer A . . . . Express delivery E-commerce 2017 1,715,398 35.4% within 30

services
Customer C . . . . Express delivery Express delivery 2020 76,868 1.6% upfront

service payment
Customer F . . . . Express delivery Express delivery 2020 42,637 0.9% upfront

service payment
Customer G . . . . Express delivery Express delivery 2020 42,357 0.9% upfront

service payment
Customer B(1) . . Express delivery Express delivery 2016 34,621 0.7% 30 days
service
Note:
(1) A SEA entity that has been acquired and consolidated into our Group in 2021. See “History and Corporate
Structure – Major Acquisitions, Disposals and Mergers” and “Financial Information.”
Year of
Principal starting
(in US$
thousands)
Customer A . . . . Express delivery E-commerce 2017 1,231,324 16.9% within 30

services
Customer H . . . . Express delivery Social 2021 482,887 6.6% 30 days

and cross-border e-commerce
services platform
Customer I . . . . Cross-border E-commerce 2022 54,160 0.7% 90 days

services platform
Customer J . . . . Express delivery E-commerce 2021 51,505 0.7% 30 days

and cross-border platform
services
Customer C . . . . Express delivery Express delivery 2020 48,102 0.7% upfront

and cross-border service payment
services
During the Track Record Period, none of our Directors or Shareholders who, to the knowledge
of our Directors, own more than 5% of our issued share capital immediately following the
completion of the [REDACTED] (but without taking into account the exercise of the
[REDACTED]) nor any of their respective associates had any interest in any of our five largest
customers, except for a SEA entity that we acquired and consolidated into our Group in 2021.
– 185 –
BUSINESS
Key terms of agreements with our customers
Our direct customers are primarily our network partners, unconsolidated regional operating
entities, e-commerce platforms and other enterprise customers and individuals which require
customized express delivery services. For details of our agreements with our network partners
and unconsolidated regional operating entities, see “– our Regional Sponsor Model –
Partnership with Regional Sponsors” and “– Our Regional Sponsor Model – Relationship with
Network Partners” in this section. We typically sign master service agreements with
e-commerce platforms and other enterprise customers, which include various terms including
parties, tenor, scope of services, fee rate and payment terms, among others. Set forth below is
a summary of typical terms of our master service agreements with e-commerce platforms and
other enterprise customers.
Key Terms Description
Tenor Typically one year or per transaction basis
Service Type Express delivery services and cross-border services, as

the case may be
Service Scope Express delivery services: standard express delivery

services covering pickup, sorting, transportation and
delivery of parcels
Cross-border services: inbound acceptance, goods and

storage, return processing and value-added services
Pricing With reference to standardized pricing for the relevant

services or fee rates otherwise agreed between the
parties, subject to mutually agreed upon fee changes
Payment Term Settlement typically around 30 days
Termination May be terminated by one or either party upon prior

notice upon certain events
Our individual customers primarily use our express delivery services and enter into our
standard express delivery services agreement with us. Set forth below is a summary of the key
terms of a typical delivery services agreement between an individual customer and us:
Key Terms Description
Tenor Per transaction basis
Service Type Express delivery services
Pricing Fixed fee based on the distance, weight, dimension and

time sensitivity of the shipment
Payment Term Upfront payment or upon delivery
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BUSINESS
CUSTOMER SERVICE
We believe our superior customer service enhances our customer loyalty and brand image. We
have established a cohesive and responsive customer service system in close collaboration with
our regional sponsors. In addition to a dedicated customer service team at our country
headquarters, our regional sponsors are also responsible for setting up regional customer
service functions and helping us manage customer service enquiries in regional operational
entities within the applicable region. Our regional sponsors also provide ongoing training and
conduct regular performance reviews of network partners where applicable to ensure that they
provide quality customer service.
We monitor a series of key service quality indicators to monitor our customer service quality.
According to Frost & Sullivan, based on a consumer survey conducted in Southeast Asia in
March 2022, with respect to Net Promoter Score (NPS), we achieved an average score of 8.4
out of 10, which was the best among our peers with respect to speed, timeliness and service
quality satisfaction. In China, based on figures reported by the State Post Bureau of the PRC,
we achieved a lost parcel rate of 0.32 per million parcels, a complaint rate of 0.78 per million
parcels and an effective complaint rate of 0.02 per million parcels in the first three months of
2023, compared to industry averages of 2.88, 10.29 and 3.16 per million parcels, respectively,
for the first three months of 2023.
We strive to innovate in customer service. For example, we are the first to provide 365-day
operations in Malaysia and Indonesia with 24-hour customer service, according to Frost &
Sullivan. In China, we undertake to respond to customer-initiated inquiries and complaints
within one hour of a complaint being lodged within our system, which is at the forefront of the
industry. Additionally, we have implemented an industry-leading one hour refund policy,
whereby we initiate refunds to the customer within one hour of a determination of
responsibility.
We also operate a call system providing real-time assistance by our representatives during
business hours, seven days a week. Our automated system continues to respond to inquiries
outside of business hours and forwards inquiries that require attention from representatives to
our call center representatives for further handling. We have call centers in each of our
countries of operations. All branches within a country can be reached via a unified number and
use the same call system and database. Our call system automatically forwards incoming calls
to the local branch near the caller’s location. Our over 2,600 call center representatives as of
December 31, 2022 adhere to the same customer service standards throughout our network and
their local knowledge contributes to enhanced customer service effectiveness. We provide
regular trainings to our representatives and review the callers’ level of satisfaction with their
service. For each complaint, we strive to provide a response within 24 hours.
SUPPLIERS
During the Track Record Period, our suppliers primarily included service providers of
third-party transportation, human resources services and express delivery services including
our network partners and unconsolidated regional operating entities. In 2020, 2021 and 2022,
our five largest suppliers accounted for 15.6%, 12.3% and 10.0% of our total purchases,
respectively. For the same periods, our largest supplier accounted for 6.2%, 3.6% and 2.5% of
our total purchases, respectively.
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BUSINESS
Our network partners and our unconsolidated regional operating entities could be both our
customers and our suppliers. They are our customers as we provide them with express delivery
services including, but not limited to, integrated express delivery services, network
management services, parcel sorting services and transportation services, as the case may be.
They are also our suppliers as they provide us with pickup, delivery and other services with
respect to parcels from other customers in our network. During the Track Record Period, some
of them were both our top five customers and top five suppliers. Customer B, a major customer
of 2020, and Customer C, a major customer of 2021, were both suppliers of our Group. We
provided express delivery services, including pickup, sorting and delivery to them, while they
provided us with express delivery service mainly comprised of pickup and delivery services.
In 2020 and 2021, the revenue generated from such customers represented approximately 1.8%
and 1.6% of our total revenue, respectively, and the purchase amount attributable to such
customers represented 1.9% and 3.6%, respectively, of the corresponding period.
During the Track Record Period, none of our Directors or Shareholders who, to the knowledge
of our Directors, own more than 5% of our issued share capital immediately following the
completion of the [REDACTED] (but without taking into account the exercise of the
[REDACTED]) nor any of their respective associates had any interest in any of our five largest
suppliers, except for a SEA entity that we acquired and consolidated into our Group in 2021.
We maintain direct control over key routes and line-haul transportation to maintain operational
control over critical aspects of our network. We engage third-party operators for certain
components of our delivery process when such process does not significantly impact the
quality and efficiency of our overall services. For example, for our line-haul transportation
network, we directly control our sorting centers as well as line-haul route planning. However,
we engage third party transportation service providers to complete a portion of the
transportation to supplement our capacity.
We typically enter into master service agreements with our third-party service providers. Some
participants in our network such as our network partners and unconsolidated regional operating
entities are recognized both as our customers and service providers. For details of our
agreements with our network partners and unconsolidated regional operating entities, see “–
Our Regional Sponsor Model – Relationship with Network Partners” in this section.
TECHNOLOGY
We have developed a global technology platform centered around our proprietary JMS system,
along with our open platform and various applications designed for employees and network
participants. The global technology platform is supported by multiple proprietary technology
platforms that empower multiple key aspects of our operations and enhance our efficiency. We
deployed a hybrid cloud and public cloud infrastructure globally to support our global
technology platform, which is easily scalable, and built a micro-services architecture to power
its modularized functions, features and applications.
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BUSINESS
Integrated systems
We have developed a suite of integrated platforms for management of day-to-day operations,

covering data management, network management, service quality management, customer
relationship management, transportation management and device and materials management:
• Data management: we established a standardized data management framework which

unifies and integrates datapoints arising from all stages of business operations including
orders, pickup and delivery outlets, sorting centers, flow of orders and transport, among
others. Our data management platform visualizes the datapoints and generates insights for
management.
• Network management: we map our overall express delivery network and manage the key
information of each network partner such as their location, qualification, key management
personnel and employees, among others, to facilitate efficient management of the
network.
• Service quality management: we rigorously monitor each completed delivery and display
reminders on the status of the delivery to facilitate us in handling events that may lead
to complaints in advance.
• Customer relationship management: our customer relationship management platform

enables us to categorize and manage the end customer base, including merchants,
individuals and enterprise customers. We track daily incoming and delivered orders in
real time and regularly monitor the activeness and stickiness of these end customers.
• Transportation management: we have a command center monitoring and coordinating our

fleet to optimize resource allocation and advise on alternative routes. The platform also
identifies vehicles irregularities and provides early warnings, enabling us to enhance the
efficiency of transportation.
• Device and materials management: we connect and manage our PDAs across our
network. We can monitor the use of this equipment and timely report on any damage or
malfunction. We also are able to track per-person processing capacity and the usage of
sustainable materials in our operations to enhance our overall efficiency.
Global coverage and localization
Circumstances in different markets, such as Southeast Asia, China and other markets, vary
drastically in terms of parcel volumes, infrastructure, business culture and other market
characteristics. This necessitates a level of customized development in areas such as systems
displays and settlement logistics, as well as investment in technical architecture. Our system
is highly modularized with main express delivery functions across various stages of the parcel
delivery process, such as order placement, price monitoring and order tracking, among others.
This is also supported by a suite of proprietary applications designed to be utilized by
personnel across our network with different roles. Localization is achieved through
customization using modular components that can be deployed in different languages,
currencies, time zones and local infrastructure. This modular system can also be dynamically
expanded according to network volume, flexibly responds to market demands and covers a
majority of the required functions of the entire express delivery system. Due to this, we have
substantially shortened the trial and error period when entering into a new market.
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Highly automated express delivery processing
We deploy a wide array of automated machines and equipment across our network, including
sorting machines, tracking systems and PDA scanners, among others. We have developed our
proprietary parcel tracking system that is connected with the systems of our regional operating
entities and network partners to increase transparency throughout the delivery cycle. We also
employ automated sorting machines at certain critical high-volume sorting centers capable of
scanning up to approximately 88,000 packages per hour at peak volume and intelligent
scanning, which feeds data into our tracking system, greatly reduces reliance on manual labor,
lowers operating cost and shortens delivery times. The use of automated equipment at major
links of the parcel delivery process enables us to enhance our processing capacity.
Customized APIs and user interfaces
Due to our globalized business across diversified markets, we have customized portals to
connect with a variety of network participants as well as different interfaces to cater to
different customers. We link our system with those of our e-commerce platform customers via
Application Programming Interfaces (APIs), allowing the e-commerce platforms and the
merchants to access shipment data to provide analysis for business purposes. Through this
customized interface, e-commerce platforms can track packages in real time and better manage
their inventory and warehousing needs. For certain merchants not affiliated with any
e-commerce platforms and hence lacking basic technology infrastructure, they can
conveniently access our system via Independent Software Vendors (ISVs) to place delivery
orders, enabling them to grow their business and us to expand our customer reach. We have
also developed multiple ordering interfaces to cater to the diverse needs of customers.
Customers can access our services from website, mobile applications, call center and social
media applications anywhere and anytime.
Enhanced address digitalization system
We leverage address digitalization systems across the markets we operate in. In Southeast Asia,
our enhanced address digitalization platform encompasses our digitalized address coding
system, which we refer to as our “nine-digit code,” and our self-developed and self-maintained
address library. Our digitalized address coding system identifies the destination outlets and the
designated delivery personnel. We accumulate authentic address data points, use them to train
our systems through fundamental machine learning approaches and thereby address the unique
logistics issues in Southeast Asia, including the inaccuracy and insufficient coverage of
third-party address libraries and non-standard data inputs which require extended data
cleansing. We have developed our proprietary address digitalization platform in China by
leveraging our graphical learning and Bidirectional Encoder Representations from
Transformers (BERT) algorithms to enhance the accuracy of our address identification and
efficiency of delivery. Our implementation of the enhanced digitalized address coding system
has increased our level of automation and accuracy, allowing us to make better predictions,
allocate resources more efficiently, optimize our delivery routes and reduce our costs while
making it easier for us to expand into new geographies.
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INTELLECTUAL PROPERTY
Our intellectual property, including any trademarks, copyrights, trade dress, trade secrets and
proprietary technologies, is an important part of our business. Our success depends in part on
our ability to obtain and maintain intellectual property and proprietary protection for our
technology, defend and enforce our intellectual property rights, preserve the confidentiality of
our trade secrets and operate without infringing, misappropriating or otherwise violating valid
and enforceable intellectual property and proprietary rights of others. To protect our
intellectual property and proprietary information, we rely on a combination of trademark,
copyright and trade secret laws and regulations, as well as contractual restrictions. We seek to
protect our proprietary technology, in part, by requiring our employees, consultants,
contractors and other third parties to execute confidentiality agreements and invention
assignment agreements and by implementing technological measures and other methods. As of
the Latest Practicable Date, we owned 542 registered trademarks and 258 registered domain
names. We also had 234 copyright registrations, primarily covering the proprietary software we
have designed. For further details of our intellectual property rights, see “Statutory and General
Information – 2. Further Information about our Business – 2.2 Intellectual property rights of
our Group” in Appendix V to this document. During the Track Record Period and up to the
Latest Practicable Date, no material claims or disputes were brought against us in relation to
any infringement of trademarks, copyrights or other intellectual property.
COMPETITION
The express delivery industry in Southeast Asia is fragmented and we compete primarily with
express delivery service provided by national postal agencies as well as leading private
domestic express delivery companies in each of the countries in which we operate. We also
compete with international carriers that operate in Southeast Asia and China in connection with
our cross-border services. We believe that our global footprint, innovative regional sponsor
business model, superior operational capabilities and our quality service provide us with a
competitive advantage. While we maintain leading positions in our core markets, certain more
established e-commerce companies may compete with us by building their own logistics
capabilities. Furthermore, certain local players might seek to expand regionally and compete
with us in overlapping geographies. We believe that our core strengths provide us with
competitive advantages over existing and potential competitors. For further details regarding
our industry, see “Industry Overview.”
SECURITY AND SAFETY
We follow local regulations regarding security and safety in each of our jurisdictions of
operations and have obtained certification of the ISO9001 for express delivery management
services. We maintain lists of prohibited and/or regulated items based on jurisdiction, local
industry regulations and shipping method. We have established standardized parcel security
screening protocols throughout the pickup, sorting and delivery process. We require that pickup
personnel visually inspect all items sent by end customers. We also employ measures such as
X-ray screening of parcels for safety hazards or prohibited items. Penalties are imposed on the
responsible personnel for picking up or delivering prohibited items. Our safety screening
system will continue to evolve to meet changing needs.
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BUSINESS
Workplace safety and transportation safety are important to our business. We have
implemented protocols for safety of ground transportation for our fleet and operations of our
sorting centers to ensure safety and minimize accidents. We provide periodic training to our
employees to recognize hazards, mitigate risk and avoid injury to themselves and others at
work. We have already instituted safety policies in response to the COVID-19 pandemic, which
includes various policies for screening personnel prior to entry into the workplace and masking
policies. We have implemented regular disinfection schedules for all of our workplace areas
and have required pickup and delivery outlets to perform regular disinfection. We also screen
vehicles according to itinerary information prior to entry onto our premises as well as require
regular disinfection of vehicles and packages prior to delivery.
DATA SECURITY AND PRIVACY
We have implemented a data security management protocol that sets out policies for our
data-related operations, including the collection, transmission, storage, sharing, destruction,
backup and recovery of data. Our data security policies include mechanisms for customer
privacy protection, data classification, monitoring, emergency response and management of
third parties. We have a dedicated data security team that establishes and enforces procedures
regarding the management of data security. In 2023, we obtained certification of the ISO27001
for information security management system.
We have developed our internal policies and procedures with the goal of meeting industry
standards and good practice. A few examples of our measures include (i) instituting a
governance framework to ensure senior management are empowered to address any privacy
issues, (ii) subjecting internal group data transfers to procedures providing for lawful transfer
of data to protect the security of personal information, (iii) implementing international
information security and data privacy standards, (iv) updating our policies and procedures
pursuant to periodic security impact assessments, and (v) implementing a framework to ensure
the protection of personal data of customers and notification of customers if a data leakage
event were to occur.
During the Track Record Period, we did not experience any material information leakage or
loss of sensitive data.
BRANDING AND MARKETING
We seek to expand brand awareness and enhance our brand image for individual and enterprise
customers by focusing on high delivery volumes paired with high service quality. While we
seek to establish a unified brand, we carefully research the particulars of each market in which
we operate, including local competition and consumer sentiment, and develop a variety of
marketing initiatives tailored to each region to promote our brand. Our offline marketing
activities include traditional media such as billboards with slogans customized for different
local regions and public relations activities, particularly in key locations of e-commerce
businesses. We work with celebrities to provide endorsements for our platform and promote a
youthful and energetic brand image. We also offer rebates and promotions in connection with
various e-commerce shopping events and in partnership with e-commerce platforms. In
addition, we continue to seek partnerships with social media and e-commerce platforms to
increase our brand visibility as well as the number of consumer touchpoints.
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With the help of our regional sponsors, we train and guide our network partners to market their
services to our end customers and maintain customer relationships. To advance our goal of
establishing a unified brand image, we require network partners to apply our logos on
personnel uniforms, transportation vehicles and packaging materials in a consistent and unified
manner in order to further enhance our brand recognition during interactions with our end
customers. We also have a designated sales team that handles enterprise customer relationships
directly. In general, we strive to continuously improve our service quality to elevate our brand
and attract and retain more customers.
SEASONALITY
Our results of operations are affected by seasonal patterns peculiar to the jurisdictions where
we operate. Our parcel volume was typically lower in the first quarter of each year as a result
of regional holidays such as the Lunar New Year. In Southeast Asia, our parcel volume is also
impacted by holidays such as Ramadan and regional promotion periods such as September 9
and October 10 sales promotion periods. In China, we typically experience higher parcel
volume in the fourth quarter of the year due to various holidays and promotional events offered
by e-commerce platforms, such as around the November 11 and December 12 sales promotion
periods. Our financial condition and results of operations for future periods may continue to
fluctuate. As a result of such fluctuations, comparisons of revenue and results of operations
between different periods within a single financial year or between different periods in
different financial years cannot be relied on as indicators of our performance.
EMPLOYEES
We had a total of 73,927, 146,432 and 126,511 full-time employees as of December 31, 2020,
2021 and 2022, respectively. The following table sets forth the breakdown of our full-time
employees as of December 31, 2022 by function:
Function Number of Employees Percentage of Total

(%)
Operations 104,710 82.8

Sales and Marketing 1,838 1.5
Research and Development 1,899 1.5
General Administration 15,440 12.2
Customer services 2,624 2.0
Total 126,511 100.0
As of December 31, 2022, we had 112,490, 7,831 and 6,190 employees in Southeast Asia,
China and other jurisdictions, respectively. In Southeast Asia, compared with China, we
operated much larger amount of pickup and delivery outlets directly through regional operating
entities and therefore engaged a larger number of staff.
We believe we offer our employees competitive compensation packages and a merit-based

work environment that encourages initiative, and as a result, we have generally been able to
attract and retain qualified personnel and maintain a stable core management team. In addition,
as required by applicable regulations, we participate in various government statutory employee
benefit plans.
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BUSINESS
We enter into standard labor agreements with our employees and, in addition, enter into
confidentiality and non-compete agreements with our key employees. The non-compete
restricted period typically expires two years after the termination of employment, and we agree
to compensate the employee with a certain percentage of his or her pre-departure salary during
the restricted period.
We believe that we maintain a good working relationship with our employees, and we have not
experienced any major labor disputes or any difficulty in recruiting staff for our operations
during the Track Record Period.
PROPERTIES
As of December 31, 2022, the properties that we occupied or managed as sorting centers and
warehouses had a total GFA of approximately 4.5 million square meters, including self-owned
and leased properties.
Self-owned Properties
As of December 31, 2022, our self-operated sorting centers and warehouses that are located on
premises we own represented a GFA of approximately 62 thousand square meters, accounting
for approximately 1.4% of the total GFA of sorting centers and warehouses occupied or
managed by us.
Leased Properties
As of December 31, 2022, we leased approximately 4.4 million square meters of sorting centers
and warehouses, accounting for substantially all the total areas of sorting centers and
warehouses occupied or managed by us. The lease term typically ranges from one to six years.
According to Chapter 5 of the Listing Rules and section 6(2) of the Companies (Exemption of
Companies and Prospectuses from Compliance with Provisions) Notice (Cap. 32L of the Laws
of Hong Kong), this document is exempted from compliance with the requirements of section
342(1)(b) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance in relation
to paragraph 34(2) of the Third Schedule to the Companies (Winding Up and Miscellaneous
Provisions) Ordinance, which requires a valuation report with respect to all our Group’s
interests in land or buildings.
INSURANCE
We maintain various insurance policies to safeguard against risks and unexpected events, such
as insurance over the equipment in our sorting centers as well as accident insurance. We have
purchased compulsory motor vehicle liability insurance and commercial insurance such as
automobile third-party liability insurance, vehicle loss insurance and driver/passenger liability
insurance.
We do not maintain business interruption insurance nor do we maintain product liability

insurance or key-man insurance. Our management will evaluate the adequacy of our insurance
coverage from time to time and purchase additional insurance policies as needed. Our business
is, however, susceptible to risks arising from losses we sustain during the course of our
business operations and we cannot assure you that the insurance policies we have taken out are
always able to cover all losses we sustain. For further details see “Risk Factors – Risks Related
to Our Business and Industry – We have limited insurance coverage which could expose us to
significant costs and business disruption.”
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BUSINESS
We believe that the insurance coverage we currently have is in line with relevant industry
standards and is adequate for us to conduct normal business operations. During the Track
Record Period, we did not experience any material claim from a third party nor did we make
any material insurance claim in the course of our operations.
ENVIRONMENT, SOCIETY, AND CORPORATE GOVERNANCE
Environmental, Social, and Governance (ESG) considerations are an essential part of our
business strategy. We recognize that operating sustainably and social responsibly is not only
the right thing to do but is also essential to our long-term success and the well-being of our
stakeholders.
We have established a tiered, comprehensive ESG management framework. The board of

directors is responsible for steering our overall ESG strategy, setting annual ESG goals, and
reviewing budgets and policies. We have established an ESG committee, led by the our CFO,
to supervise overall ESG matters, review ESG objectives, and report to the board of directors
on our ESG progress. Our ESG committee is further supported by our risk control and audit
department, which would supervise and implement our ESG projects, identify ESG-related
risks to assist the management’s decision making process, and prepare our ESG publication and
disclosure.
We conducted a materiality assessment to identify ESG topics that are material to us, from
which we are able to prioritize ESG aspects and strategize our action plan. We identify and
assess material ESG-related issues as follow:
• We build and continue to update our own ESG issues database based on the ESG
guidelines of the Hong Kong Stock Exchange, GRI, SASB and other relevant authorities,
with reference to ESG rating indicators from MSCI, Sustainalitics and DJSI;
• We engage internal and external stakeholders to identify specific ESG questions,

determine the materiality of different issues and evaluate the impact of different ESG
issues on us;
• Based on the results of the questionnaire, we identify material ESG issues by considering
their respective impact on stakeholders and our sustainable development, and incorporate
such ESG issues into our strategies and development plans.
Environmental Sustainability
Management of Environmental and Climate Changes
We continue to improve our management system for environmental sustainability and promote
effective implementation of environmental protection measures. We have established an
Eco-Environmental Protection Committee, chaired by the CEO, as well as a project
management sub-committee focused on carbon neutrality and green packaging. In addition, we
issued and implemented the Measures of Identifying and Evaluating Environment-related
Factors, Waste Management Measures and other protocols to safeguard our environmental
protection effort at an institutional level. We actively encourage and lead network partners to
participate in environmental initiatives, adopt standardized packaging protocols, attend
trainings and educational sessions.
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Mitigation of Environmental and Climate Impact
We are actively responding to the carbon peaking and carbon neutrality goals by continuously
optimizing our energy usage structure and reducing our carbon emissions. In 2022, we
deployed over 150 LNG-powered tractors across the country, and equipped line-haul vehicles
with advanced GPS system supported by GIS technology, which allows us to monitor
anomalies in transportation process, optimize the planning of line-haul routes and improve
energy efficiency, which effectively reduces carbon dioxide emissions by 20% compared to
traditional diesel tractors.
In the process of preparing our self-constructed logistic centers, we introduced a smart

management system to monitor the energy and water usage. To further mitigate the
environmental impact, we participated in various environmental programs including the
reforestation initiative led by Jiuquan City, Gansu Province, where we planted more than 2,000
saplings of poplar trees, date palm trees and sorrel trees in 2022.
Promoting Green Express Delivery Practice
We are dedicated to advancing green practices in every step of the express delivery process by,
among others, promoting e-waybills, “slim tapes”, reusable transfer bags, and reusable parcel
boxes, throughout our network.
We began implementing reusable transit bags in April 2021. As of December 31, 2022, we had
deployed over 17 million reusable transit bags throughout our network, which use RFID chips
that carry route tracking information. Our scanning technology uses RFID to collect
information such as transit status, package flow, loss tracking and warehouse storage. Each
usage of our RFID-enabled reusable transit bags can reduce carbon emissions by 169 grams.
As of December 31, 2022, our reusable transit bags had been used over 355 million times,
reducing carbon emissions by over 59,995 tons.
In August 2021, we established a research and development unit for reusable transit box, and
started implementing our reusable transit box, the Red Box, in March 2022. As of December
31, 2022, we have purchased over 28,000 Red Boxes and are in the process of deploying them
across our network. We also launched the initiative to recycle used corrugated fiberboard
boxes. In 2022, we deployed the designated recycle bins in over 4,000 outlets.
Additionally, compared with traditional paper sheet and dual-sheet e-waybills, our single-sheet
e-waybill saves 80% and 45% of paper consumables respectively. By the end of 2022 we had
fully implemented this e-waybill system throughout our network. Based on one gram of paper
saved per single-sheet e-waybill, approximately 2,406 tons of base paper had been saved in
2022, which is equivalent to over 210,900 fewer trees and approximately 17,650 tons reduced
in carbon emissions.
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Social Responsibilities
Human Capital
We understand that our success is closely correlated to the well-being of our employees,
customers, and the communities where we operate. To that end, we have launched the
following social initiatives:
• Labor and Employee Rights. We respect and protect employees’ rights and interests, and
we strive to create a work environment of openness, fairness, impartiality and equal
recruitment. We forbid any forms of discrimination, we respect and provide equal
treatments to employees of different countries, nationalities, genders, religious beliefs
and cultural backgrounds, and we adopt a zero-tolerance policy against any form of child
labor. We also require our staff to conform to high ethical standards.
We have set up labor union and dedicated supervisory committees to hear the voice of
employees and delivery personnel through a myriad of channels ranging from telephone,
WeChat to email.
We closely monitor and strive to adhere to laws and regulations in each country where we
operate, and we implement internal management and control procedures to safeguard
rights and interests of every employee stipulated by relevant laws and regulations.
• Career Development. We have established a solid talent cultivation mechanism and

created an online-offline hybrid training platform. We continuously improve our training
framework to empower every category of participant on our value chain and develop their
careers. We offer a broad range of courses and programs covering professional training,
general development, and management skills. We design training programs tailored for
different positions at various career stages, meeting the training needs of employees,
regional sponsors, network partners and delivery personnel. In 2022, we provided
approximately 800 hours of trainings to over 290,000 participants.
We have a complete employee career development system, to evaluate employees and

provide opportunities for promotion.
• Employee care. We care about the physical and mental health of employees. We regularly
organize physical therapy lecture and provide mental counseling session. For the delivery
personnel in our network, we offer support through mental health hotlines and other
benefits.
We procure additional commercial insurance for employees who travel frequently. We

also strive to help our employees balance their work and life. We organize various
recreational and sports activities for our employees. For example, we established different
sports clubs that include basketball, table tennis and soccer. Our badminton club
cooperated with a professional badminton club for professional training. In January 2022,
we launched the second “Jitu Union Warm Bee Action” and distributed condolences to
couriers with special difficulties. In Vietnam, we also set up our J&T Care Fund with
initial commitment of up to VND3.0 billion for our employees and their families who had
been heavily impacted by the COVID-19 pandemic.
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• Occupational health and safety. We have established a series of safety guidelines, rules
and procedures for different aspects of our operations, covering fire safety, operation
safety, warehouse safety, work-related injuries and emergency and evacuation procedures
to promote occupational employee’s health, safety and compliance with applicable laws
and regulations. We put the safety and health of our employees as our priority when
designing our operations. We have established and continue to update policies and
procedures relating to occupational health managements. We have also established a
Safety Committee chaired by our CEO, which oversees the overall safe management in
our Group. In 2022, we obtained certification of the ISO14001 environmental
management system and ISO45001 occupational health and safety management system.
We are also committed to raising occupational health and safety awareness by organizing
safety education and training programs. In 2022, we have organized over 6,300
safety-related training sessions to approximately 409,000 participants.
Charitable Endeavors
• Poverty alleviation and community support. We actively explore the rural market to
promote the sales of commodities to, and sales of agricultural products by, residents in
remote regions with the aim to help stimulate consumption in rural areas and increase the
income of rural residents. We actively cooperate with local governments in Jilin, Shaanxi,
Shanxi, Guangxi and other major agricultural provinces in China to bring local products
to the broader market by using our network of sorting centers, and have a dedicated team
to lead agricultural initiatives, including the setup of front-line warehouses designed
specifically for agricultural products. We also promote digital inclusion of merchants,
users and rural communities in countries where we operate, thereby helping alleviate
poverty across the country. We have set up a special program in Vietnam to facilitate
shipment of agricultural products and promote rural residents’ participation in
e-commerce via trainings and assistance programs.
• Support in time of need. Following the COVID-19 outbreak, we have been committed to
helping people affected by the pandemic during the most difficult times. We launched
initiatives in several countries to provide transportation and logistics support to local
governments. We provided our frontline employees with masks and other protective
equipment immediately after the outbreak. We also supported local communities in
Indonesia, Vietnam, Malaysia and other jurisdictions where we operate by donating
medical and rescue supplies, food, water and other basic necessities to frontline workers.
For example, in Malaysia we donated over 60,000 face masks to the police in February
2021. This is just one example of the hundreds of thousands of care packages, meals and
supplies that have been donated through the J&T network during the pandemic.
During the Track Record Period and up to the Latest Practicable Date, we had not been subject
to any fines or other penalties due to non-compliance in relation to health, work safety, social
or environmental regulations which had materially and adversely affected our financial
condition or business operations, and have not had any accidents or claims for personal or
property damage made by our employees.
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LEGAL PROCEEDINGS AND COMPLIANCE
During the Track Record Period and up to the Latest Practicable Date, we had not been a party
to, and were not aware of any threat of, any legal, arbitral or administrative proceedings,
which, in our opinion, would likely have a material and adverse effect on our business,
financial condition or results of operation. We may from time to time become a party to various
legal, arbitral or administrative proceedings arising in the ordinary course of our business.
Compliance
During the Track Record Period and up to the Latest Practicable Date, we had not been
involved in any material noncompliance incidents that have led to fines, enforcement actions
or other penalties that could, individually or in the aggregate, have a material and adverse
effect on our business, financial condition and results of operations.
LICENCES AND REGULATORY APPROVALS
Licences, Permits and Registrations
Our Directors confirm that during the Track Record Period and up to the Latest Practicable
Date, we had obtained all the approvals, permits, consents, licences and registrations that are
material to our business and operations and all of them were in force as of the Latest
Practicable Date. We had obtained or been awarded the following licences, permits and
registrations that are, in the opinion of our Directors, material to our business, as of the Latest
Practicable Date:
Holder License, certificate or registration Date of grant Date of expiry
J&T International International Freight Forwarding April 19, 2021 Long-term

Logistics China Agencies
J&T Express China Courier Service Operation Permit November 17, 2020 November 16, 2025
for International Courier Service
J&T Express China Courier Service Operation Permit June 25, 2019 June 24, 2024
for Domestic Courier Service
Yuyi Transportation Road Transportation Operation February 13, 2020 February 13, 2024
(Chongqing) Co., Ltd. Permit
PT GJE Postal License March 18, 2019 Long term
J&T Express (Malaysia) Courier License April 1, 2021 March 31, 2024
Sdn. Bhd.
Thuan Phong Express Domestic Postal License May 27, 2016 May 27, 2026
Company Limited
Thuan Phong Express International Postal License December 30, 2021 December 30, 2031
Company Limited
– 199 –
BUSINESS
RISK MANAGEMENT AND INTERNAL CONTROL
Our senior management are responsible for formulating and overseeing the implementation of
our internal control measures and the effectiveness of our risk management system, which is
designed to provide reasonable assurance regarding the achievement of objectives relating to
operations, reporting and compliance.
Operational Risk Management
See “– Security and Safety” in this section for information about our for information about our
security and safety protocols.
Human Resources Risk Management
We have established internal control policies covering various aspects of human resources
management such as recruiting, training, work ethic and legal compliance. The demand in our
industry for skilled employees is intense and we may be adversely affected by the departure of
any key employees. See “Risk Factors – Risks Related to Our Business and Industry – Overall
tightening of the labor market, increases in labor cost or any possible labor unrest may affect
our business as we operate in a labor-intensive industry.” Each of our executive officers and
key employees has entered into an employment agreement with confidentiality, intellectual
property and non-competition provisions with us.
We distribute copies of our employee handbook to all of our employees. The employee
handbook contains, among other things, a code of conduct that each employee must comply
with.
We provide regular trainings to our staff on work ethic, working procedures, internal policies,
management, technical skills and other aspects that are relevant to their day-to-day work.
Through these trainings, we ensure their skillset is up-to-date and meets our requirements.
Information Technology Risk Management
See “– Data Security and Privacy” in this section for information about our information
security procedures and policies.
Financial Reporting and Risk Management
We have adopted comprehensive accounting policies in connection with our financial reporting
risk management. We have established strict internal reimbursement and financial activities
reporting policies. In particular, our finance department has implemented special inspection
and verification procedures on invoices, bills, notes and other financial instruments, to check
the legitimacy of the original instruments we receive and use. Our finance department also
checks whether the amount and time provided on the face of the instrument match the relevant
contracts. Our finance team has extensive experience in finance and financial reporting. We
provide ongoing training to our finance staff to ensure that our financial reporting and risk
management policies are well-observed and effectively implemented.
– 200 –
BUSINESS
AWARDS AND RECOGNITION
We have repeatedly been recognized for the quality and popularity of our products and
services. The following table sets forth a few of our major awards and recognitions during the
Track Record Period.
Award/recognition Country Award year Awarding institution/authority
Last-Mile Delivery Company of Saudi Arabia 2023 KSA Logistics & Transport Awards
the year
Top Brand Award 2022 Indonesia 2022 Marketing.co.id
Top 10 Asia Excellent Brand Vietnam 2022 Asian Economic Research Institute
2022
Vietnam Digital Awards 2022 Vietnam 2022 Vietnam Digital Communications

Association
Philippines’ Best Employers for the Philippines 2022 Philippine Daily Inquirer & Statista
2023 Award
Singapore Partner Experience of Singapore 2022 Asian Business Review

the Year – Logistics
2021 Annual Development China 2022 China Post and Express News
Award in the Express Industry Office (中國郵政快遞報社)
(2021快遞年度發展獎) & 2021
Social Responsibility Award
(2021快遞社會責任獎)
PR Newswire Corporate China 2022 PR Newswire (美通社)
Communications Awards 2022 –
Global Development Award
(2022新傳播年度大獎 – 品牌出
海拓展獎)
Reclame AQUI (客服服務獎) Brazil 2022 Reclame AQUI
Top Brand Award 2021 (2021年 Indonesia 2021 Frontier Group

度最佳品牌獎)
Most Engage Delivery Services Indonesia 2021 MIX MarComm

Brand 2021 Award (2021最傑出
快遞服務品牌)
Bronze Stevie Awards for the Philippines 2021 The Stevie Awards
Achievement in Growth and
Branded Content Campaign of
2021
Company of the Year for the Philippines 2021 Asia Leader’s Awards
Services & Fast Moving
Company of the Year
– 201 –
BUSINESS
Award/recognition Country Award year Awarding institution/authority
2021 Outstanding Caring China 2021 The Fourth Social Responsibility

Enterprise & 2021 Outstanding Conference (第四屆社會責任大會)
Public Welfare Practice Award
(2021年度傑出愛心企業獎及
2021年度傑出公益實踐獎)
Top Brand Award 2020 (2020年 Indonesia 2020 Frontier Group

度最佳品牌獎)
Digital Award Innovation Award Indonesia 2020 Warta Economic Research and
(數字創新獎) Consulting
Top 10 Asia-Pacific Outstanding Vietnam 2020 Asia-Pacific Economic Center and

Brand 2020 (Top 10亞太地區典 the Asia-Pacific Economic Review
型品牌獎) Organization
Business Newcomer of the Year the Philippines 2020 National Customers’ Choice
in the Courier Services Industry Awards
(快遞服務行業年度商業新人獎)
– 202 –
PRC CONTRACTUAL ARRANGEMENTS
Regulatory Background
Overview
Foreign investment activities in the PRC are mainly governed by the Special Administrative
Measures (Negative List) for the Access of Foreign Investment (the “Negative List”) and the
Catalog of Industries for Encouraging Foreign Investment (the “Encouraging Catalog”),
which was promulgated and is amended from time to time jointly by the MOFCOM and the
NDRC. The Negative List and the Encouraging Catalog divides industries into three categories
in terms of foreign investment, namely, “encouraged”, “restricted”, and “prohibited.”
Industries not listed in the Encouraging Catalog and the Negative List are generally deemed as
falling into a fourth category “permitted.” The currently effective Negative List is the Special
Administrative Measures (Negative List) for the Access of Foreign Investment (2021 Version)
(the “2021 Negative List”), which became effective on January 1, 2022. As advised by our
PRC Legal Adviser, a summary of our business/operation that is subject to foreign investment
restriction or prohibition in accordance with the Negative List, the Encouraging Catalog and
other applicable PRC laws and on certain interview with governmental authority is set out
below (the “Relevant Businesses”):
As advised by our PRC Legal Adviser, Article 51 of the Postal Law of the PRC (中華人民共
和國郵政法) prohibits foreign investment in a business that operates and provides domestic
express delivery of letters. Similarly, according to the 2021 Negative List, promulgated by the
NDRC and the MOFCOM, postal services and domestic express delivery of letters are
industries where foreign investment is not permitted, i.e., prohibited categories.
Pursuant to the Administrative Measures on the Courier Service Market (快遞市場管理辦法)

and the Administrative Measures on Courier Service Operation Permits (快遞業務經營許可管
理辦法), any entity operating courier services within a province, autonomous region or
municipality, including but not limited to delivery of letters, parcels and other items, must
obtain a Courier Service Operation Permit (快遞業務經營許可證) from the provincial Postal
Administrations, and any entity operating courier services across multiple provinces, including
but not limited to delivery of letters, parcels and other items, must obtain a cross-provincial
Courier Service Operation Permit (快遞業務經營許可證) from the State Post Bureau (國家郵
政局).
Given that the Company provides an integrated service with respect to its express delivery
services, we believe that it is neither legally nor commercially practicable to separate the
domestic express delivery of non-letters from the Company’s domestic express delivery of
letters which rely on the Courier Service Operation Permit and/or are subject to foreign
ownership restrictions pursuant to the 2021 Negative List (the “Prohibited Businesses”) for
the following reasons:
(a) we currently do not distinguish between letters and non-letters at our service stations and
it would be impracticable from a manpower and cost perspective for us to enforce
additional categorisations at such customer service stations as all customer service
stations currently use the same finance, accounting and logistics management technology
systems;
– 203 –
(b) our delivery facilities and personnel are currently fully integrated and it would incur
significant additional costs for us to consciously delineate the delivery of letters and
non-letters due to the need to form separate administrative systems, retrain our personnel
and revamp our current service interface; and
(c) the use of a single integrated system for both letters and non-letters would enable us to
maximise economies of scale and our data integrated platforms allows us to enhance our
network management, service quality management, customer relationship management,
transportation management and device and materials management. This enhances the
customer experience and also reduces inefficiencies and wastage across our network,
allowing us to provide better service at a lower cost to retain our competitive advantage.
Our PRC Legal Adviser conducted verbal consultations in February and June 2023 with market
regulation offices of 17 provincial Postal Administrations (the “Regulatory Consultations”),
during which the corresponding officers confirmed that (i) applicants must fulfill a number of
conditions to obtain a Courier Service Operation Permit, including whether the applicant has
its own standalone delivery stations, facilities, delivery capability and service network; and (ii)
a separate Courier Service Operation Permit will not be issued to two separate entities which
use the same delivery stations, facilities, delivery personnel and service network. As advised
by our PRC Legal Adviser, the daily duties of such provincial Postal Administrations, include,
among others: (i) the review of application for provincial Courier Service Operation Permit;
(ii) the review and verification for application of cross-provincial Courier Service Operation
Permit under the direction of the State Post Bureau; (iii) the implementation of market entry
and exit rules of courier and postal services in accordance with applicable laws; and (iv) the
enforcement of the national and provincial courier and postal services related laws and
regulations. In light of the foregoing, our PRC Legal Adviser is of the view that such consulted
officials are competent persons to give the above confirmation.
Consequently, it is unlikely that our Company can obtain or will in the foreseeable future
obtain separate cross-provincial Courier Service Operation Permits for two separate entities
which use the same delivery stations, facilities, delivery personnel and service network. In
other words, as advised by our PRC Legal Adviser, two separate entities under the Group may
obtain a cross-provincial Courier Service Operation Permits only if their delivery stations,
facilities, delivery personnel and service network do not overlap.
J&T Express China is currently holding a cross-provincial Courier Service Operation Permit.
J&T Express China is a wholly-owned subsidiary of Shanghai Yishangshiye (the “PRC
Holdco”), which is a Consolidated Affiliated Entity of the Company.
In addition, following the acquisition of BEST Express China, the Group acquired another
cross-provincial Courier Service Operation Permit by acquiring 100% of the equity interests in
Hangzhou BEST on December 8, 2021. The two cross-provincial Courier Service Operation
Permits held by each of J&T Express China and Hangzhou BEST are based on their respective
standalone delivery stations, facilities, delivery personnel and service network before the
acquisition of BEST Express China. As of the Latest Practicable Date, all of the aforesaid
delivery stations, facilities, delivery personnel and service network had been all consolidated
to have been possessed and operated by J&T Express China. After the completion of the
consolidation, Hangzhou BEST will not possess any delivery stations, facilities, delivery
personnel or service network, and will dispose of its cross-provincial Courier Service
Operation Permit in due course.
– 204 –
The Contractual Arrangements also include certain business that are not relying on the Courier
Service Operation Permit and/or not subject to foreign ownership restrictions pursuant to the
2021 Negative List, which is the short messaging service (“SMS”) business. The revenue
contribution of the SMS business under the Contractual Arrangements to our Group amounted
to approximately 0.03%, 0.03% and 0.06% for the years ended December 31, 2020, 2021 and
2022, respectively, with the remaining revenue contribution under the Contractual
Arrangements arising from Prohibited Businesses. The Company confirms that it will (and will
have measures in place to) ensure the SMS business under the Contractual Arrangements will
remain immaterial after the [REDACTED] and its annual revenue contribution relative to the
Group will be below 5%. Our audit committee will review the proportion of the revenue
generated form the SMS business on an annual basis and will make adequate disclosure on an
ongoing basis in our Company’s annual report after the [REDACTED].
For further details of the limitations on foreign ownership in PRC companies conducting the
aforementioned business under PRC laws and regulations, see “Regulatory Overview”.
Overview of Our PRC Contractual Arrangements
Because foreign investment in certain areas of the industry in which we currently operate is
subject to restrictions under current PRC laws and regulations as outlined above, and to
maintain the business operations and the effectiveness of license and permits held by J&T
Express China, J&T Express China and its relevant holding company and subsidiaries which
are engaged in the domestic express delivery of letters business must be controlled by the
Company through the Contractual Arrangements.
The PRC Holdco, Shanghai Yishangshiye is held by Wu Rongmei (吳蓉眉) as to 99% and Liu
Wei (劉偉) as to 1%. Wu Rongmei (吳蓉眉) is the office manager of J&T Express China and
the director of J&T Express (Shanghai) Acme Supply Chain Management Co., Ltd. (上海極兔
極致供應鏈管理有限公司) and J&T Express China and Liu Wei (劉偉) is the supervisor of J&T
Express (Shanghai) Acme Supply Chain Management Co., Ltd. (上海極兔極致供應鏈管理有限
公司) and J&T Express China.
The PRC Contractual Arrangements (set out in more detail below) allow for our Company
(or our wholly-owned subsidiaries) to exercise control of our Consolidated Affiliated Entities.
Further, the PRC Registered Shareholders have, in the shareholder rights proxy agreement,
given its irrevocable undertakings that address potential conflicts of interests that may arise in
connection with the PRC Contractual Arrangements.
In view of the aforementioned PRC regulatory background, after consultation with our PRC
Legal Adviser, we determined that it was not viable for our Company to hold the Consolidated
Affiliated Entities directly through equity ownership. Instead, we decided that, in line with
common practice in industries in the PRC subject to foreign investment restrictions, we would
gain effective control over, and receive all the economic benefits generated by the businesses
currently operated by the Consolidated Affiliated Entities through the PRC Contractual
Arrangements between the PRC WFOE, on the one hand, and Shanghai Yishangshiye and its
shareholders, on the other hand. The PRC Contractual Arrangements allow the results of
operations and assets and liabilities of the Consolidated Affiliated Entities to be consolidated
into our results of operations and assets and liabilities under IFRSs as if they were subsidiaries
of our Group.
– 205 –
In order to comply with PRC laws and regulations while availing ourselves of international
capital markets and maintaining effective control over all of our operations, we commenced a
series of reorganization activities. In replacement of certain of the previous contractual
arrangements and to comply with the requirements set out in HKEX-LD43-3, the PRC
Contractual Arrangements currently in effect were entered into on January 18, 2023, whereby
the PRC WFOE have acquired effective control over the financial and operational policies of
the Consolidated Affiliated Entities and have become entitled to all the economic benefits
derived from their operations. As advised by the Company’s PRC Legal Adviser, the Company
will not incur additional PRC income tax and business tax as a result of the termination and
replacement of the previous contractual arrangements on the basis that there was no material
change to the contractual arrangements.
Our Directors believe that the PRC Contractual Arrangements are fair, enforceable and
reasonable because: (i) the PRC Contractual Arrangements were freely negotiated and entered
into between the PRC WFOE and Shanghai Yishangshiye; (ii) by entering into the exclusive
business cooperation agreement with our PRC WFOE, which is our Group’s subsidiary
incorporated in the PRC, Shanghai Yishangshiye will enjoy significant control and economic
and technical support from us, as well as a better market reputation after the [REDACTED],
and (iii) a number of other companies use similar arrangements to accomplish the same
purpose.
The Company
100%
Intermediate holding companies
100%
PRC Registered
The PRC WFOE(1) Shareholders(3)
Technical support,
business support
Service Fees and relevant 100%
consultation services
The PRC Holdco(2)
Onshore subsidiaries
Notes:
(1) The PRC WFOE provides technical support, business support and relevant consultation services in exchange
for service fees from Shanghai Yishangshiye. See “Contractual Arrangements – Our Contractual Arrangements
– Summary of the agreements under the PRC Contractual Arrangements and other key terms thereunder –
Exclusive Business Cooperation Agreement”.
(2) The PRC Holdco refers to Shanghai Yishangshiye, which is owned by the PRC Registered Shareholders,
namely as to 99% by Wu Rongmei (吳蓉眉) and 1% by Liu Wei (劉偉), respectively.
(3) The PRC Registered Shareholders executed an exclusive option agreement in favor of the PRC WFOE for the
acquisition of all or part of the equity interests in and all or part of the assets of Shanghai Yishangshiye. See
“Contractual Arrangements – Our Contractual Arrangements – Summary of the agreements under the PRC
Contractual Arrangements and other key terms thereunder – Exclusive Option Agreement”. The PRC
Registered Shareholders executed shareholder rights proxy agreements in favor of the PRC WFOE, for the
exercise of all shareholders’ rights in Shanghai Yishangshiye. See “Contractual Arrangements – Our
Contractual Arrangements – Summary of the agreements under the PRC Contractual Arrangements and other
key terms thereunder – Shareholder Rights Proxy Agreement”. The PRC Registered Shareholders granted
– 206 –
security interests in favor of the PRC WFOE, over the entire equity interests in Shanghai Yishangshiye. See
“Contractual Arrangements – Our Contractual Arrangements – Summary of the agreements under the PRC
Contractual Arrangements and other key terms thereunder – Equity Pledge Agreement”.
(4) “ ” denotes beneficial ownership in the equity interest. The PRC WFOE is an indirect wholly-owned
subsidiary of the Company.
(5) “ ” denotes contractual relationship.
(6) “ ” denotes the control by the PRC WFOE over the PRC Registered Shareholders and Shanghai
Yishangshiye through (i) proxy agreement to exercise all shareholders’ rights in Shanghai Yishangshiye,
(ii) exclusive options to acquire all or part of the equity interests and assets of Shanghai Yishangshiye and
(iii) equity pledges over the equity interests in Shanghai Yishangshiye.
Circumstances under which we will unwind the PRC Contractual Arrangements
Our Group will unwind and terminate the PRC Contractual Arrangements as soon as
practicable in respect of the operation of our supply chain solutions and logistics services
business to the extent permissible and we will directly hold the maximum percentage of
ownership interests permissible under relevant PRC laws and regulations in the event that PRC
regulatory restrictions on foreign ownership of the relevant business cease to exist or allow the
relevant business to be held by sino-foreign equity joint ventures or wholly-owned foreign
investment entities.
Summary of the agreements under the PRC Contractual Arrangements and other key
terms thereunder
A description of each of the specific agreements that comprises the PRC Contractual
Arrangements is set out below.
Exclusive Business Cooperation Agreement
As part of the PRC Contractual Arrangements, Shanghai Yishangshiye entered into the
exclusive business cooperation agreement (the “Exclusive Business Cooperation
Agreement”) with the PRC WFOE, pursuant to which, in exchange for service fees, Shanghai
Yishangshiye agreed to engage the PRC WFOE as its exclusive provider of the following
technical support, business support and relevant consultation services:
• the license of relevant software and technologies to Shanghai Yishangshiye which are
legitimately owned by the PRC WFOE and required by Shanghai Yishangshiye’s
businesses;
• the development, maintenance and updates of relevant software required by Shanghai

Yishangshiye’s businesses;
• the design, installation, daily management, maintenance and updating of computer and
network systems, hardware equipment and database;
• the development and testing of new products;
• the technical support and professional trainings for Shanghai Yishangshiye’s staff;
• the assistance for Shanghai Yishangshiye in consultations, collections and surveys of

technical and market information (other than those market surveys which are prohibited
from being conducted by a wholly foreign-owned entity according to PRC laws);
– 207 –
• providing enterprise management consultation for Shanghai Yishangshiye;
• leasing of equipment and assets; and
• other relevant technical services and consultation services as required by Shanghai

Yishangshiye from time to time to the extent permitted by PRC laws.
The service fees shall consist of 100% of the total profit of Shanghai Yishangshiye and its
subsidiaries in any given financial year, after the deduction of any accumulated deficit of
Shanghai Yishangshiye and its subsidiaries in respect of the preceding financial year(s),
operating costs, expenses, taxes and other statutory contributions required in any given
financial year. Notwithstanding the foregoing, the PRC WFOE may adjust the scope and
amount of service fees in accordance with PRC tax law principles and tax practices, and with
reference to the working capital needs of Shanghai Yishangshiye and its subsidiaries, and
Shanghai Yishangshiye will accept any such adjustment. The PRC WFOE may adjust the
sharing ratio, payment amount, calculation of service fees and payment method with a written
notice.
The PRC WFOE and Shanghai Yishangshiye, during the term of the Exclusive Business
Cooperation Agreement and where necessary, may enter into further technical service
agreement and/or consultation service agreement between Shanghai Yishangshiye and the PRC
WFOE or its designated person, which shall provide the specific contents, methods, personnel,
and fees for the specific services.
In addition, absent the prior written consent of the PRC WFOE, during the term of the
Exclusive Business Cooperation Agreement, with respect to the services subject to the
Exclusive Business Cooperation Agreement, Shanghai Yishangshiye shall not accept the same
or any similar consultation or services provided by any third party and shall not establish
similar cooperation relationships with any third party. The PRC WFOE has the right to appoint
any third party to provide services specified under the Exclusive Business Cooperation
Agreement.
Shanghai Yishangshiye grants the PRC WFOE an irrevocable and exclusive purchase option
right to, at the sole discretion of the PRC WFOE and to the extent permitted by PRC laws,
purchase all or any part of assets of Shanghai Yishangshiye and its subsidiaries at the lowest
price permitted by PRC laws. To secure Shanghai Yishangshiye’s performance of the Exclusive
Business Cooperation Agreement, Shanghai Yishangshiye agrees to provide the PRC WFOE a
guarantee with its receivables arising from daily operation and all of its assets.
The Exclusive Business Cooperation Agreement also provides that the PRC WFOE has the
exclusive proprietary rights to and interests in any and all intellectual property rights
developed or created by Shanghai Yishangshiye and its subsidiaries during the performance of
the Exclusive Business Cooperation Agreement. Shanghai Yishangshiye may register certain
intellectual property rights designated by the PRC WFOE under the name of Shanghai
Yishangshiye and its subsidiaries as required by businesses of Shanghai Yishangshiye, but
Shanghai Yishangshiye shall, and shall procure its subsidiaries to, transfer such intellectual
property rights to the PRC WFOE upon request by the PRC WFOE for free or at the lowest
price permitted by law. The Exclusive Business Cooperation Agreement shall remain effective
unless terminated (a) in accordance with the provisions of the Exclusive Business Cooperation
Agreement or mandatory provisions of PRC laws; (b) in writing by the PRC WFOE;
(c) renewal of the expired business period of either the PRC WFOE or Shanghai Yishangshiye
is declined or rejected by relevant government authorities, at which time the Exclusive
Business Cooperation Agreement will terminate upon termination of that business period; or
– 208 –
(d) in the event that the PRC WFOE or their subsidiaries are able to conduct the Relevant
Businesses directly as a result of being permitted to do so under the then-applicable PRC laws,
and the entire equity interests of Shanghai Yishangshiye or all of Shanghai Yishangshiye and
its subsidiaries’ assets have been transferred to the PRC WFOE or its appointee(s).
Exclusive Option Agreement
As part of the PRC Contractual Arrangements, the PRC Registered Shareholders entered into
the exclusive option agreement (the “Exclusive Option Agreement”) with Shanghai
Yishangshiye and the PRC WFOE. Pursuant to the Exclusive Option Agreement, the PRC
WFOE has the exclusive, irrevocable and unconditional right to purchase, or to designate one
or more persons/entities to purchase, from the PRC Registered Shareholders all or any part of
its equity interests in Shanghai Yishangshiye and from Shanghai Yishangshiye all or any part
of the assets of Shanghai Yishangshiye and its subsidiaries at any time in the PRC WFOE’s
absolute discretion in accordance with the provisions of the Exclusive Option Agreement and
to the extent permitted by the PRC laws. The consideration in relation to purchasing shares
from the PRC Registered Shareholders of Shanghai Yishangshiye shall be the amount of
contributed registered capital made by the PRC Registered Shareholders corresponding to the
shares to be purchased, or the lowest price as permitted by the applicable PRC laws, whichever
is lower. The consideration in relation to purchasing assets from Shanghai Yishangshiye shall
be the lowest price as permitted under the applicable PRC laws. The aforesaid consideration
shall be paid within seven (7) days upon transfer.
Each of Shanghai Yishangshiye and the PRC Registered Shareholders has covenanted that, as
applicable, among other things:
• without the prior written consent of the PRC WFOE, it shall not in any manner
supplement, change or amend the constitutional documents of Shanghai Yishangshiye,
increase or decrease its registered capital, or change the structure of its shareholding in
other manner;
• it shall maintain Shanghai Yishangshiye’s corporate existence in accordance with good

financial and business standards and practices, and prudently and effectively operate its
business and handle its affairs;
• without the prior written consent of the PRC WFOE, it shall refrain from any
action/omission that may adversely affect Shanghai Yishangshiye’s assets, businesses or
liabilities; without the prior written consent of the PRC WFOE, it shall not at any time
following the signing of the Exclusive Option Agreement sell, transfer, pledge or dispose
of in any manner any legal or beneficial interest in the assets, business or revenues of
Shanghai Yishangshiye, or allow the encumbrance thereon of any security interest;
• without the prior written consent of the PRC WFOE, Shanghai Yishangshiye shall not
incur, inherit, guarantee or assume any debt, except for (i) debts incurred in the ordinary
course of business other than payables incurred by a loan, and (ii) debts already disclosed
to the PRC WFOE and for which written approval has already been obtained from the
PRC WFOE;
• Shanghai Yishangshiye shall always operate all of its businesses during the ordinary
course of business to maintain its asset value and refrain from any action/omission that
may adversely affect Shanghai Yishangshiye’s operating status and asset value;
– 209 –
execute any material contracts (for the purpose hereof, a contract with a value above
RMB10,000,000), except for contracts executed in the ordinary course of business;
provide any person with any loan or guarantee;
• it shall provide the PRC WFOE with information on Shanghai Yishangshiye’s business
operations and financial condition at the request of the PRC WFOE;
• without the prior written consent of the PRC WFOE, it shall not cause or permit Shanghai
Yishangshiye to merge, consolidate with, acquire or invest in any person;
• it shall immediately notify the PRC WFOE of the occurrence or possible occurrence of
any litigation, arbitration or administrative proceedings relating to Shanghai
Yishangshiye’s assets, businesses or revenues;
• to maintain the ownership by Shanghai Yishangshiye of all of its assets, it shall execute
all necessary or appropriate documents, take all necessary or appropriate actions and file
all necessary or appropriate claims or complaints or raise necessary and appropriate
defences against all claims;
• without the prior written consent of the PRC WFOE, Shanghai Yishangshiye shall not in
any manner distribute dividends, provided that upon the written request of the PRC
WFOE, Shanghai Yishangshiye shall immediately distribute all distributable profits to
their shareholders;
proceed with dissolution or liquidation;
• once PRC laws permits foreign invested enterprises to operate the businesses which
Shanghai Yishangshiye is engaged in, the PRC Registered Shareholders shall transfer all
of its equity interests in Shanghai Yishangshiye to the PRC WFOE or a person appointed
by the PRC WFOE, and/or Shanghai Yishangshiye shall transfer all of the assets of
Shanghai Yishangshiye and its subsidiaries to the PRC WFOE or a person appointed by
the PRC WFOE; and
• to the extent permitted by PRC laws, the PRC WFOE shall have the right to exercise the
exclusive option right against the PRC Registered Shareholders or the legitimate
successors or representatives of the PRC Registered Shareholders pursuant to the terms
and conditions of the Exclusive Option Agreement in the event of death, divorce,
incapacity, bankruptcy of the PRC Registered Shareholders or other circumstances which
causes his/her inability to exercise his/her rights as a shareholder of Shanghai
Yishangshiye.
The aforementioned covenants shall also apply to all the subsidiaries of Shanghai
Yishangshiye.
In addition, each of the PRC Registered Shareholders has covenanted that:
• upon a request by the PRC WFOE, it shall consent and appoint the persons appointed by
the PRC WFOE to act in the positions of director, general management and other senior
management, change such appointment at any time as required by the PRC WFOE, and
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proactively cooperate to proceed with such appointment and change of appointment,

including without limitation, executing necessary documents and making filings with the
corresponding administration for market regulation with respect to such appointment or
change of appointment;
• to the extent permitted by PRC laws, upon the request by the PRC WFOE, it shall transfer
all or any part of its equity interests in Shanghai Yishangshiye to the PRC WFOE or a
person appointed by the PRC WFOE immediately and unconditionally at any time, and
relinquish the right of first refusal it is entitled to in relation to any equity interests to be
transferred by any other existing shareholder of Shanghai Yishangshiye. It shall
proactively cooperate to proceed with such equity transfer, including without limitation,
executing necessary documents and filing with the corresponding administration for
market regulation with respect to such equity transfer; in addition, it shall pay to the PRC
WFOE or its designated persons all consideration received in connection such transfer in
accordance with Exclusive Option Agreement;
• it will immediately gift any profits or dividends received from Shanghai Yishangshiye in
accordance with the written consent by the PRC WFOE to the PRC WFOE or a
representative appointed by the PRC WFOE to the extent permitted by the PRC laws;
• it shall strictly abide by the provisions of the Exclusive Option Agreement and other
agreements entered into with Shanghai Yishangshiye and the PRC WFOE, perform the
obligations under these agreements in a practical manner, and refrain from any
action/omission which would affect the validity and enforceability of such agreements;
• it will gift any liquidation proceeds received from Shanghai Yishangshiye (if any) due to
any liquidation of Shanghai Yishangshiye caused by any reason (including bankruptcy) to
the PRC WFOE or a representative appointed by the PRC WFOE to the extent permitted
by the PRC laws.
The aforementioned covenants shall also apply to all the subsidiaries of Shanghai
Yishangshiye.
The Exclusive Option Agreement shall remain effective unless terminated (i) in the event that
the entire equity interests held by the PRC Registered Shareholders in Shanghai Yishangshiye
or all of Shanghai Yishangshiye and its subsidiaries’ assets have been transferred to the PRC
WFOE or its appointee(s); or (b) in writing by the PRC WFOE.
Loan Agreement
The PRC WFOE and the PRC Registered Shareholders have executed a loan agreement
(the “Loan Agreement”). Pursuant to the Loan Agreement, the PRC WFOE enjoys the right of
the creditor against the PRC Registered Shareholders in an aggregate amount of RMB10
million (the “Loans”), and such loans have been used for contribution to paid-in capital of
Shanghai Yishangshiye. Pursuant to the Loan Agreement, the PRC Registered Shareholders can
only repay the Loans by the transfer of all their equity interest in Shanghai Yishangshiye or all
of the assets of Shanghai Yishangshiye and its subsidiaries to the PRC WFOE or its designated
third party upon the exercise by the PRC WFOE of the exclusive option right pursuant to the
terms and conditions of the Exclusive Option Agreement, and the PRC Registered Shareholders
shall pay all of the proceeds from transfer of such equity interests or assets (to the extent
permitted under PRC law) to the PRC WFOE for such repayment. In the event that the PRC
Registered Shareholders transfer their equity interests or assets to the PRC WFOE or its
designated person with a price equivalent to or less than the amount of the principal, the Loans
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will be deemed as interest free. If the price is higher than the amount of the principal, the
excess amount will be paid to the PRC WFOE as the loan interest. The term of the Loans shall
terminate when the PRC WFOE exercises the exclusive option right pursuant to the terms and
conditions of the Exclusive Option Agreement. The Loans must be repaid immediately under
certain circumstances, including, among others, (i) upon the expiration of 30 days after the
PRC WFOE sends a written notice requesting repayment of the Loans; (ii) in the event of
death, divorce, incapacity, bankruptcy of the PRC Registered Shareholders or other
circumstances which causes his/her inability to exercise his/her rights as a shareholder of
Shanghai Yishangshiye; (iii) if the PRC Registered Shareholders engage in criminal acts or are
involved in criminal activities; or (iv) if a foreign investor is permitted to invest in PRC in form
of holding majority or 100% equity interest for principal business currently conducted by
Shanghai Yishangshiye and its subsidiaries and branches according to applicable PRC law,
relevant PRC authorities begin to approve such business, and the PRC WFOE elects to exercise
its exclusive purchase option pursuant to the Exclusive Option Agreement.
Shareholder Rights Proxy Agreement
Each of the PRC Registered Shareholders has executed the shareholder rights proxy agreement
(the “Proxy Agreement”). Under the Proxy Agreement, the PRC Registered Shareholders
irrevocably appointed the PRC WFOE and its designated persons (including but not limited to
the directors of the parent company of the PRC WFOE and their successors and the liquidators
replacing such directors or successors) as its exclusive agent to exercise on its behalf, any and
all rights that it has in respect of its equity interests in Shanghai Yishangshiye, including
without limitation: (i) to propose, convene and attend shareholder’s meetings of Shanghai
Yishangshiye according to its articles of association, and to exercise the rights of voting and
making decisions on behalf of the PRC Registered Shareholders on all matters required to be
resolved by shareholders;; (ii) to exercise any shareholder rights it is entitled to as shareholder
of Shanghai Yishangshiye according to its articles of association, including but not limited to
any right to dividends and right to sell, transfer, pledge or dispose of all or any part of the PRC
Registered Shareholders’ equity interests in Shanghai Yishangshiye; (iii) to transfer the equity
interest or approve to transfer the assets of Shanghai Yishangshiye, decrease registered capital
of Shanghai Yishangshiye, accept capital increases to Shanghai Yishangshiye by the PRC
WFOE or its designated person, execute relevant equity transfer agreements, asset transfer
agreements (if applicable), capital decrease agreements, capital increase agreements,
shareholder resolutions, meeting minutes and other relevant documents on behalf of the PRC
Registered Shareholders, proceed with necessary approvals, registrations, filings or
submissions with governmental authorities and companies registry for the aforesaid matters;
(iv) to bring litigation or take other legal actions against the legal representative, director(s),
supervisor(s), general manager or other members of senior management of Shanghai
Yishangshiye if any conduct of the aforesaid has damaged the interests of the PRC WFOE or
its shareholder(s); and (v) to exercise all other shareholders’ rights under Shanghai
Yishangshiye’s articles of association and other applicable PRC laws and regulations.
The Proxy Agreement is irrevocable and shall remain effective, and may only be terminated in
the event that (i) it is terminated in accordance with mandatory provisions of PRC laws; (ii) in
writing by the PRC WFOE; (iii) the business period of any party to the Proxy Agreement
expires; or (iv) the PRC Registered Shareholder has transferred all of its equity interests in
Shanghai Yishangshiye pursuant to the prior written consent by the PRC WFOE, or has
decreased the registered capital of Shanghai Yishangshiye to the extent it does not own any
equity interests in Shanghai Yishangshiye, and has completed the relevant government
procedures.
– 212 –
The Proxy Agreement also provides that, in order to avoid potential conflicts of interest where
the PRC Registered Shareholders, are officers or directors of the Group, any exercise of the
rights under the Proxy Agreement shall be in favor of our Company.
Equity Pledge Agreement
As part of the PRC Contractual Arrangements, the PRC Registered Shareholders have entered
into the equity pledge agreement (the “Equity Pledge Agreement”) with Shanghai
Yishangshiye and the PRC WFOE. Pursuant to the Equity Pledge Agreement, the PRC
Registered Shareholders agree to pledge all its equity interests in Shanghai Yishangshiye,
including any interest or dividend paid for the shares, to the PRC WFOE as a security interest
to guarantee the performance of contractual obligations under the relevant PRC Contractual
Arrangements.
The equity pledges under the Equity Pledge Agreement comes into effect upon completion of
registration with the relevant administration for market regulation and shall remain valid until
after all the contractual obligations of the PRC Registered Shareholders and Shanghai
Yishangshiye under the relevant PRC Contractual Arrangements have been fully performed.
Pursuant to the Equity Pledge Agreement, the PRC Registered Shareholders and Shanghai
Yishangshiye agree that, without prior written consent from the PRC WFOE, the PRC
Registered Shareholders shall not transfer the pledged equity interests or create or allow any
third party to create any encumbrance on the pledged equity interests.
Upon the occurrence and during the continuance of an event of default (as defined in the Equity
Pledge Agreement), the PRC WFOE shall have the right to exercise all such rights as a secured
party under the Equity Pledge Agreement and any applicable PRC laws, including without
limitations, being paid in priority with the equity interests based on the monetary valuation that
such equity interests are converted into or from the proceeds from auction or sale of the equity
interest upon written notice to the PRC Registered Shareholders.
As of the Latest Practicable Date, the registrations of the Equity Pledge Agreement in relation
to PRC Registered Shareholders had been completed.
Spouse Undertakings
The spouse of each of the relevant PRC Registered Shareholders, where applicable, has signed
undertakings to the effect that (i) he/she has no right to or control over such interests of the
respective PRC Registered Shareholder and will not have any claim on such interests, or exert
influence on the day-to-day management or voting matters of Shanghai Yishangshiye;
(ii) confirms that the respective spouse may further amend or terminate the PRC Contractual
Arrangements without the need for authorization or consent by him/her; (iii) the respective
spouse’s interests in Shanghai Yishangshiye (together with any interests therein) do not fall
within the scope of communal property; and (iv) if he/she is transferred any shares of Shanghai
Yishangshiye for any reason, he/she will be bound by the PRC Contractual Arrangements and
will observe obligations contained in such agreements, and will sign all necessary documents
and to take all necessary actions to ensure the PRC Contractual Arrangements are properly
preformed.
– 213 –
Other key terms thereunder
Dispute resolution
Each of the PRC Contractual Arrangements stipulates that the parties thereto shall negotiate in
good faith to resolve any dispute with respect to the construction and performance of the
provisions of any such PRC Contractual Arrangements. In the event the parties fail to resolve
such a dispute within 30 days after any party’s request for resolution of the dispute through
negotiations, any party may submit the relevant dispute to the Shanghai Arbitration
Commission for arbitration, in accordance with the then-effective arbitration rules. The
arbitration shall be conducted in Shanghai, and the language used during arbitration shall be
Chinese. The arbitration ruling shall be final and binding on all parties.
The PRC Contractual Arrangements also provide that (i) the arbitral tribunal may award
remedies over the equity interests, assets or property interest of Shanghai Yishangshiye and its
subsidiaries, injunctive relief (e.g. for the conduct of business or to compel the transfer of
assets) or order the winding up of Shanghai Yishangshiye and its subsidiaries; and (ii) the
courts of Hong Kong, the Cayman Islands (being the place of incorporation of our Company)
and other jurisdiction (being the place where the principal assets of Shanghai Yishangshiye and
its subsidiaries and the PRC WFOE are located) also have jurisdiction for the grant or
enforcement of the arbitral award and the interim remedies against the equity or property
interest of Shanghai Yishangshiye.
However, our PRC Legal Adviser has advised that (i) a tribunal normally would not grant such
kind of injunctive relief or winding up order of Shanghai Yishangshiye under PRC laws;
(ii) interim remedies or enforcement orders granted by overseas courts such as Hong Kong and
the Cayman Islands may not be recognizable or enforceable in the PRC; and (iii) even if the
abovementioned provisions may not be enforceable under PRC laws, the remaining provisions
of the dispute resolution clauses are legal, valid and binding on the parties to the agreement
under the PRC Contractual Arrangements.
As a result of the above, in the event that Shanghai Yishangshiye or the PRC Registered
Shareholders breaches any of the PRC Contractual Arrangements, we may not be able to obtain
sufficient remedies in a timely manner, and our ability to exert effective control over Shanghai
Yishangshiye and conduct our business could be materially and adversely affected. See Risk
Factors – Risks Related to Our Corporate Structure – We rely on Contractual Arrangements to
establish control over certain entities and government authorities may determine that these
arrangements do not comply with existing laws and regulations. for details.
Arrangements to address potential conflicts of interest
Each of the PRC Registered Shareholders has, in the Proxy Agreement, given his/her
irrevocable undertakings to address potential conflicts of interests that may arise in connection
with the PRC Contractual Arrangements. For further details, see “– Our Contractual
Arrangements – Summary of the agreements under the PRC Contractual Arrangements and
other key terms thereunder – Shareholder Rights Proxy Agreement” in this section.
– 214 –
Loss sharing
None of the agreements constituting the PRC Contractual Arrangements provides that our
Company or the PRC WFOE is obligated to share the losses of Shanghai Yishangshiye, but if
Shanghai Yishangshiye or any of its subsidiaries suffers any losses or material difficulties of
business, the PRC WFOE may adjust the amount or percentage of service fees at its discretion
under the terms of the Exclusive Business Cooperation Agreement. Further, each of Shanghai
Yishangshiye and its subsidiaries is a limited liability company and shall be solely liable for
its own debts and losses with assets and properties owned by it. Under PRC laws and
regulations, our Company or the PRC WFOE and its subsidiaries are not expressly required to
share the losses of Shanghai Yishangshiye or provide financial support to Shanghai
Yishangshiye. Despite the foregoing, given that our Consolidated Affiliated Entities conduct
the Relevant Businesses in the PRC through J&T Express China (and Hangzhou BEST until its
permit is deregistered) which hold the requisite PRC permit and approvals and that results of
operations and assets and liabilities of the Consolidated Affiliated Entities are consolidated
into our results of operations and assets and liabilities under the applicable accounting
principles, our business, financial condition and results of operations would be adversely
affected if the Consolidated Affiliated Entities suffered losses.
Liquidation
Pursuant to the Exclusive Option Agreement, in the event of a mandatory liquidation required
by PRC laws, Shanghai Yishangshiye shall sell all of its assets, to the extent permitted by PRC
laws, to the PRC WFOE or another qualifying entity designated by the PRC WFOE, at the
lowest selling price permitted by applicable PRC laws. Any obligation for the PRC WFOE to
pay Shanghai Yishangshiye as a result of such transaction shall be waived by Shanghai
Yishangshiye and any profits arising from the above transactions shall be paid to the PRC
WFOE or the qualifying entity designated by the PRC WFOE in partial satisfaction of the
service fees under the Exclusive Business Cooperation Agreement, as applicable under the
then-current PRC laws. Accordingly, in the event of winding up of Shanghai Yishangshiye, a
liquidator may seize the relevant assets of Shanghai Yishangshiye through the PRC WFOE
based on the PRC Contractual Arrangements for the benefit of our creditors/shareholders.
Termination
The PRC Contractual Arrangements shall be terminated once the PRC WFOE or its designated
person holds the entire equity interests in Shanghai Yishangshiye and/or the entire assets of
Shanghai Yishangshiye and its subsidiaries under the then-applicable PRC laws and if the PRC
WFOE or their subsidiaries are able to conduct the Relevant Businesses directly as a result of
being permitted to do so under the then-applicable PRC laws and the PRC WFOE or its
designated person are registered as the shareholder of Shanghai Yishangshiye. In addition,
pursuant to the Exclusive Business Cooperation Agreement, the Exclusive Option Agreement
and the Proxy Agreement, the PRC WFOE has the unilateral right to terminate these
agreements at any time by providing 30 days’ advance written notice to Shanghai Yishangshiye
or the PRC Registered Shareholders, as applicable.
Insurance
We do not maintain an insurance policy to cover the risks relating to the PRC Contractual
Arrangements.
– 215 –
Company’s confirmation
As of the Latest Practicable Date, we had not encountered any interference or encumbrance
from any PRC governing bodies in operating our businesses through Shanghai Yishangshiye
under the PRC Contractual Arrangements.
Legality of the PRC Contractual Arrangements
We are of the view that the PRC Contractual Arrangements are narrowly tailored to minimize
the potential conflict with relevant PRC laws and regulations. In addition, our PRC Legal
Adviser is of the opinion that:
(i) parties to each of the PRC Contractual Arrangements have obtained all necessary
approvals and authorizations to execute and perform the PRC Contractual Arrangements;
(ii) the PRC Contractual Arrangements would not be deemed as “impairing others’ legitimate
rights and interests with malicious collusion” under the PRC Civil Code, which will lead
the arrangements to be deemed an invalid act under the PRC Civil Code;
(iii) none of the agreements under the PRC Contractual Arrangements violates any provisions
of articles of association of the PRC WFOE or Shanghai Yishangshiye;
(iv) the parties to each of the PRC Contractual Arrangements are not required to obtain any
approvals or authorizations from the PRC governmental authorities, except that (a) the
pledge under the equity pledge agreement is required to be registered with the
administration for market regulation; (b) the exercise of the option by the PRC WFOE of
its rights under the Exclusive Option Agreement to acquire all or part of the equity
interests in Shanghai Yishangshiye is subject to the approvals of, consent of, filing with
and/or registration with the PRC governmental authorities; and (c) the arbitration
awards/interim remedies provided under the dispute resolution provision of the PRC
Contractual Arrangements shall be recognized by the PRC courts before compulsory
enforcement.
(v) each of the PRC Contractual Arrangements is valid and binding on the parties under the
PRC laws, except in relation to the dispute resolution clause under these agreements.
These agreements provide that any dispute shall be submitted to the Shanghai Arbitration
Commission for arbitration, in accordance with the then-effective arbitration rules. The
PRC Contractual Arrangements also provide that the arbitrator may award interim
remedies over the shares or assets of the Consolidated Affiliated Entities or injunctive
relief or order the winding-up of Shanghai Yishangshiye and its subsidiaries; and the
courts of Hong Kong, the Cayman Islands and the PRC also have jurisdiction for the grant
and/or enforcement of the arbitral award and the interim remedies. However, our PRC
Legal Adviser has advised that the tribunal normally would not grant such injunctive
relief or order the winding-up of the Consolidated Affiliated Entities pursuant to PRC
laws. In addition, interim remedies or enforcement orders granted by overseas courts such
as Hong Kong and the Cayman Islands may not be recognizable or enforceable in China.
Our PRC Legal Adviser also advised us that there are substantial uncertainties regarding the
interpretation and application of current and future PRC laws and regulations. Accordingly,
there can be no assurance that the PRC regulatory authorities will not in the future take a view
that is contrary to or otherwise different from the above opinion of our PRC Legal Adviser.
– 216 –
Based on the above analysis and advice from our PRC Legal Adviser, the Directors are of the
view that the adoption of the PRC Contractual Arrangements is unlikely to be deemed
ineffective or invalid under the applicable PRC laws and regulations. See “Risk Factors – Risks
Related to Our Corporate Structure – We rely on Contractual Arrangements to establish control
over certain entities and government authorities may determine that these arrangements do not
comply with existing laws and regulations.”
Given that the PRC Contractual Arrangements will constitute non-exempt continuing
connected transactions of our Company, a waiver has been sought from and has been granted
by the Stock Exchange, details of which are disclosed in “Continuing Connected Transactions”.
DEVELOPMENT IN THE PRC LEGISLATION ON FOREIGN INVESTMENT
Background of the Foreign Investment Law
On March 15, 2019, the National People’s Congress approved the Foreign Investment Law,
which became effective on January 1, 2020. On December 26, 2019, the State Council
promulgated the Implementation Rules to the Foreign Investment Law, which came into effect
on January 1, 2020. The Foreign Investment Law replaced the Equity Joint Venture Law, the
Wholly Foreign-owned Enterprise Law, and the Cooperative Joint Venture Law to become the
legal foundation for foreign investment in the PRC. The Foreign Investment Law stipulates
certain forms of foreign investment, but does not explicitly stipulate contractual arrangements
as a form of foreign investment. The Implementation Rules to the Foreign Investment Law are
also silent on whether foreign investment includes contractual arrangements.
Impact and consequences of the Foreign Investment Law
Conducting operations through contractual arrangements has been adopted by many

PRC-based companies, including our Group. We use the PRC Contractual Arrangements to
establish control of Shanghai Yishangshiye, by the PRC WFOE through which we operate our
business in the PRC. As advised by our PRC Legal Adviser, since contractual arrangements are
not specified as foreign investment under the Foreign Investment Law and the Implementation
Rules to the Foreign Investment Law, and if future laws, regulations and provisions prescribed
by the State Council do not incorporate contractual arrangements as a form of foreign
investment, our PRC Contractual Arrangements as a whole and each of the agreements
comprising the PRC Contractual Arrangements will not be affected and will continue to be
legal, valid and binding on the parties with an exception, for which, see “ – Our Contractual
Arrangements – Legality of the PRC Contractual Arrangements”.
Notwithstanding the above, the Foreign Investment Law stipulates that foreign investment
includes “foreign investors invest in China through any other methods under laws,
administrative regulations or provisions prescribed by the State Council” without elaboration
on the meaning of “other methods”. There are possibilities that future laws, administrative
regulations or provisions prescribed by the State Council may lead to contractual arrangements
being regarded as a form of foreign investment, at which time it will be uncertain whether the
PRC Contractual Arrangements will be deemed to be in violation of the foreign investment
access requirements and how the above-mentioned PRC Contractual Arrangements will be
handled. Therefore, there is no guarantee that the PRC Contractual Arrangements and the
business of the Consolidated Affiliated Entities will not be materially and adversely affected
in the future due to changes in PRC laws and regulations. See “Risk Factors – Risks related
to our Corporate Structure – Our current corporate structure and business operations in the PRC
may be substantially affected by the PRC Foreign Investment Law and implementing rules.”
– 217 –
COMPLIANCE WITH THE PRC CONTRACTUAL ARRANGEMENTS
Our Group has adopted the following measures to ensure the effective operation of our Group
with the implementation of the PRC Contractual Arrangements and our compliance with the
PRC Contractual Arrangements:
1. major issues arising from the implementation and compliance with the PRC Contractual
Arrangements or any regulatory enquiries from government authorities will be submitted
to our Board, if necessary, for review and discussion as and when they arise;
2. our Board will review the overall performance of and compliance with the PRC
Contractual Arrangements at least once a year;
3. our Company will disclose the overall performance of and compliance with the PRC
Contractual Arrangements in our annual reports; and
4. our Company will engage external legal advisers or other professional advisers, if
necessary, to assist the Board in reviewing the implementation of the PRC Contractual
Arrangements, in reviewing the legal compliance of the PRC WFOE and Shanghai
Yishangshiye and in dealing with specific issues or matters arising from the PRC
Contractual Arrangements.
ACCOUNTING ASPECTS OF THE PRC CONTRACTUAL ARRANGEMENTS
Consolidation of financial results of operating entities
As a result of the PRC Contractual Arrangements among the PRC WFOE, Shanghai
Yishangshiye and its shareholders, the PRC WFOE has rights to exercise power over Shanghai
Yishangshiye and its subsidiaries, receives variable returns from its involvement in Shanghai
Yishangshiye and its subsidiaries, has the ability to affect those returns through its power over
Shanghai Yishangshiye and its subsidiaries and is considered to control Shanghai Yishangshiye
and its subsidiaries. Consequently, the Company regards Shanghai Yishangshiye and its
subsidiaries as consolidated affiliated entities and consolidates the assets, liabilities, and
results of operations of Shanghai Yishangshiye and its subsidiaries in the consolidated financial
information of the Group (as set out in Note 1.2 of Appendix I to this document).
INDONESIA CONTRACTUAL ARRANGEMENTS
Regulatory Background
Foreign investment in Indonesia is primarily governed under Law of the Republic of Indonesia
No. 25 of 2007 regarding Investment, issued on April 26, 2007, as partially amended by Law
of the Republic of Indonesia No. 6 of 2023 on the Stipulation of the Government Regulation
in Lieu of Law No. 2 of 2022 on Job Creation into a Law, dated March 31, 2023 (the “Job
Creation Law,” together with Law No. 25 of 2007, the “Investment Law”), as implemented
further under the 2021 Investment List (as defined below), and Indonesia Investment
Coordinating Board (Badan Koordinasi Penanaman Modal, “BKPM”) Regulation No. 4 of
2021 and BKPM Regulation No. 5 of 2021. The Investment Law provides that all business
sectors or business lines in Indonesia are open to foreign investments, except those business
sectors or business lines that are expressly closed to, or restricted from, foreign investments or
that can only be carried out by the central government. The business sectors that are opened
to foreign investments consist of: (i) priority business sectors, (ii) business sectors allocated to
be conducted via joint cooperation with Cooperatives and Micro, Small and Medium
– 218 –
Enterprises, (iii) business sectors that are open to foreign investments subject to certain
conditions, and (iv) business sectors that are not included in the abovementioned
classifications. The Investment Law also stipulates that foreign direct investment in Indonesia
must be in the form of a limited liability company with a minimum investment value (excluding
investment amount in land and building) of more than IDR10,000,000,000 (ten billion
Indonesian Rupiah) and a paid-up capital of at least IDR10,000,000,000 (ten billion Indonesian
Rupiah), established under the laws of and domiciled in the Republic of Indonesia.
The Indonesian government maintains a list of business activities that are open to foreign
investments, that are open but subject to certain conditions, or that are closed to foreign
investments, which is known as the “Investment List.” The current Investment List is set forth
in President Regulation of the Republic of Indonesia No. 10 of 2021 regarding Investment
Business Activities, dated February 2, 2021, as amended by PR No. 49 of 2021 dated May 24,
2021 (as amended, the “2021 Investment List”). The 2021 Investment List was issued to
implement the Job Creation Law. Foreign investors who intend to invest in Indonesia are
obligated to structure their investments in accordance with the restrictions or requirements
applicable to their intended business activities under the 2021 Investment List.
In addition to the 2021 Investment List, foreign investments are also regulated under the
sectoral regulations of the relevant government institutions. Postal services in Indonesia are
generally regulated under Law of the Republic of Indonesia No. 38 of 2009 regarding Post,
dated October 14, 2009, as amended by the Job Creation Law (as amended, the “Postal Law”).
“Postal Services” are defined under Article 1 (1) of the Postal Law as services relating to
written communication and/or electronic letter, package, logistics, financial transaction, and
postal agency service for public purposes. In addition to restrictions under the Investment Law,
Postal Services are subject to other foreign ownership restrictions under the Postal Law.
Restrictions on Foreign Ownership in Postal Activities
In general, foreign investors cannot make equity investments in an Indonesian company that
engages in Postal Services (a “Postal Services Company” as defined under the Postal Law),
subject to limited exceptions for investing in certain companies that engage in certain types
postal activities.
Under Article 11 (2) of the Postal Law, a Foreign Postal Operator is allowed to own certain
equity interest in an Indonesian Postal Services Company only if: (i) a “Foreign Postal
Operator” forms a joint venture company with a Postal Services Company that is an
Indonesian domestic company, and (ii) the joint venture company’s Postal Services operations
must be limited to the areas of provincial capitals, and the joint venture company does not
engage in any inter-city courier services outside such provincial capitals (the “Partnership
Requirements”). The Postal Law defines a “Foreign Postal Operator” as a foreign company
that provides postal services outside Indonesia, which requires that such foreign company
directly engages in postal activities outside Indonesia and does not take into consideration any
operations engaged by its affiliates.
Under the Postal Law and the Investment Law, if these conditions are met, foreign ownership
in an Indonesian joint venture with a courier business classified under Indonesia Standard
Industrial Classification (Klasikasi Baku Lapangan Usaha Indonesia) (“KBLI”) 53201 may be
held up to 49% direct foreign shares.
The types of activities that are permitted under KBLI 53201 (Courier Activities) include
commercial courier services such as collection, processing, transporting and delivery of
parcels, goods, and packages, both domestic and international. For any non-compliance with
– 219 –
the foregoing conditions, BKPM, the Indonesian Minister of Communication and Informatics
(“MOCI”) or the relevant authority (e.g. provincial investment agency, municipal investment
agency) may impose tiered administrative sanctions to be given in stages, i.e. first-and-final
written warning or temporary or permanent suspensions of business activities. If the relevant
authority upon providing a warning or temporary suspension regarding a non-compliant
activity and no remedy or follow-up action is taken to address the concern, then the relevant
authority is empowered to revoke the applicable license and suspend the business activity.
OUR CONTRACTUAL ARRANGEMENTS
Due to the restrictions on foreign ownership for companies engaged in Postal Services, we
currently hold 100% of our equity interests in PT Global Jet Express (“Indonesian Opco”)
through PT Cakrawala Lintas Benua and PT Sukses Indo Investama (collectively, the
“Indonesian Corporate Registered Shareholders”). To consolidate control over and derive
the economic benefits from the Indonesian Opco to our Group, we have entered into the
following contractual arrangements with the Indonesian Individual and Indonesian Corporate
Registered Shareholders.
The following diagram illustrates the structure of the Indonesian Contractual Arrangements:
Winner Star Holdings Limited

Flying Jet Express Limited
(HK)
Offshore
99.9% 0.1%
Onshore
Indonesian Individual
Registered Shareholders(1)
100%
Indonesian Indonesian Corporate
WFOE(3) Registered Shareholders(2)
100%
Contractual Arrangements
Indonesian Opco
Notes:
• The Indonesian Opco refers to PT Global Jet Express, which is wholly-owned by the Indonesian Corporate
Registered Shareholders, which are in turn wholly-owned by our affiliates, Mr. Effendy and Mr. Robin Lo (the
“Indonesian Individual Registered Shareholders”), namely as to 50% by Mr. Effendy and 50% by Mr. Robin
Lo.
• The Indonesian Corporate Registered Shareholders executed a number of agreements in favor of the
Indonesian WFOE to allow the Indonesian WFOE to consolidate control over the Indonesian Opco and derive
the full economic benefits from the Indonesian Opco. See “– Summary of the Agreements under the Indonesian
Contractual Arrangements and other key terms thereunder” in this section.
• The Indonesian WFOE refers to PT Cahaya Global Berjaya, an indirect wholly-owned subsidiary of the
Company. It provides technical support, business support and relevant consulting services in exchange for
service fees from the Indonesian Opco. See “– Summary of the Agreements under the Indonesian Contractual
Arrangements and other key terms thereunder – Exclusive Technical Service Agreement” in this section.
– 220 –
We will continue to monitor the status and developments of relevant Indonesian laws, rules and
regulations. If there are any regulatory or policy changes that would allow the Group to
restructure or terminate the Indonesian Contractual Arrangements to directly hold equity
interest in the Indonesian Opco, we will adjust the shareholding structure or terminate the
Indonesian Contractual Arrangements in accordance with applicable laws and regulations.
Summary of the agreements under the Indonesian Contractual Arrangements and other
key terms thereunder
A description of each of the specific agreements that comprise the Indonesian Contractual
Arrangements is set out below.
Loan Agreement
Pursuant to a loan agreement entered into between the Indonesian WFOE and the Indonesian
Opco on March 29, 2022 (the “Loan Agreement”), the Indonesian WFOE extended a loan in
the principal amount of Rp. 3,000,000,000.00 (three billion Indonesian Rupiah) to the
Indonesian Opco (the “Loan”). The Loan Agreement has a term of ten years and will be
renewed automatically at the end of such terms for another ten years unless the lender delivers
a written notice of termination. The Loan bears an interest of 9.00% per annum and was
secured by the Guarantee Agreement, Share Pledge Agreements, the Power of Attorneys and
the Exclusive Call Option Agreements (collectively, the “Security Documents”).
The Loan can only be repaid or settled by Indonesian Opco by transferring or selling the shares
registered under the name of the Indonesian Individual Registered Shareholders and the
Indonesian Corporate Registered Shareholders to the Indonesian WFOE or a party designated
by the Indonesian WFOE.
If an event of default occurs under the Loan Agreements (including, among others, the
Indonesian Opco fails to perform or otherwise violates the Loan Agreement or the Security
Documents, the Pledgors (as defined below) fail to be the registered shareholders of the
Indonesian Opco or the Indonesian Corporate Registered Shareholders, occurrence of an event
of default under the Exclusive Technical Service Agreement, or the Indonesian Opco or any
parties to the Securities Documents is declared bankrupt or insolvent), the Indonesian WFOE
may (i) declare the Loan to be immediately due and payable; and (ii) immediately enforce all
of its rights under the Loan Agreements and the Security Documents (to the extent permitting
the Indonesian WFOE to (a) transfer the shares of Indonesian Opco to any qualified party, (b)
deal with the assets of Indonesian Opco, and (c) manage the business and right to revenue of
Indonesian Opco).
Guarantee Agreement
Pursuant to the guarantee agreements entered by (i) the Indonesian Corporate Registered
Shareholders and the Indonesia WFOE, and (ii) the Indonesian Individual Registered
Shareholders and the Indonesian WFOE, both on March 29, 2022 (the “Guarantee
Agreements”), the Indonesian Individual Registered Shareholders and Indonesian Corporate
Registered Shareholders (together, the “Pledgors”) unconditionally and irrevocably guaranteed
to the Indonesian WFOE the payment obligation by Indonesian Opco under the Loan
Agreement and the Exclusive Technical Service Agreement. The Guarantee Agreements remain
effective until the earlier of (i) the full repayment of amounts outstanding (including the Loans,
any outstanding service fees and any outstanding amounts from time-to-time) under the Loan
Agreement and the Exclusive Technical Service Agreement or (ii) the exercise of the call
option rights pursuant to the Exclusive Call Option Agreements.
– 221 –
In the event of defaults under the Loan Agreement or the Exclusive Technical Service
Agreement, the Indonesian WFOE shall be entitled to seek the Indonesian Individual
Registered Shareholders and Indonesian Corporate Registered Shareholders to perform their
obligations under the Security Documents. For more details, see “– Exclusive Call Option
Agreement” in this section.
Exclusive Call Option Agreement
Pursuant to the call option agreements entered into between the Indonesian WFOE, the
Indonesian Individual Registered Shareholders and the Indonesian Corporate Registered
Shareholders on March 29, 2022 (the “Exclusive Call Option Agreement”), the Indonesian
WFOE has the exclusive right to (i) require the Indonesian Corporate Registered Shareholders
to transfer all shares in Indonesian Opco, (ii) require the Indonesian Individual Registered
Shareholders to transfer all shares in the Indonesian Corporate Registered Shareholders, or (iii)
require the Indonesian Corporate Registered Shareholders to transfer all assets in Indonesian
Opco, in each case to the Indonesian WFOE or a third party designated by the Indonesian
WFOE (as the case may be and in accordance with Indonesian Laws). The transfer price will
be equal to the amount of par value of such transferred shares or such price set forth in an
equity transfer agreement to be executed among relevant parties, as applicable. The Exclusive
Call Option Agreements remain effective until the full payment of Indonesian Opco’s
obligations under the Loan Agreement. The Indonesian Individual Registered Shareholders and
the Indonesian Corporate Registered Shareholders agree to return to the Indonesian WFOE (or
the entity designated by the Indonesian WFOE) any consideration they receive in the event that
any of the options under the exclusive call option agreements is exercised.
To the extent permitted by Indonesian laws, the Indonesian WFOE shall have the right to
exercise the exclusive option right against the Indonesian Individual and Indonesian Corporate
Registered Shareholders or the legitimate successors or representatives of the Indonesian
Individual and Indonesian Corporate Registered Shareholders pursuant to the terms and
conditions of the Exclusive Call Option Agreement in the event of death, incapacity,
bankruptcy of the Indonesia Individual and Corporate Registered Shareholders or other
circumstances which causes his inability to exercise his rights as a shareholder of the Indonesia
Opco.
Share Pledge Agreements
Pursuant to the share pledge agreements entered into between the Indonesian WFOE, the
Indonesian Individual Registered Shareholders and the Indonesian Corporate Registered
Shareholders on March 29, 2022 (the “Share Pledge Agreements”), the Share Pledge
Agreements have the following terms:
• the Indonesian Individual Registered Shareholders pledged all of the shares in Indonesian
Corporate Registered Shareholders to the Indonesian WFOE, and
• the Indonesian Corporate Registered Shareholders pledged all the shares in the
Indonesian Opco to the Indonesian WFOE,
to guarantee the performance of obligations by the Indonesian Individual Registered

Shareholders and Indonesian Corporate Registered Shareholders under the Guarantee
Agreements, as well as the performance of obligations by Indonesian Opco under the Loan
Agreement.
– 222 –
Pursuant to the Share Pledge Agreements, Pledgors are required deliver to Indonesian WFOE
all share certificates and other evidence of ownership in relation to the shares in Indonesian
Individual Registered Shareholders and Indonesian Opco. Each of the Pledgors undertook that
during the term of the Shares Pledge Agreements, shall not, among others, sell, dispose of,
assign, transfer, pledge or encumber the pledged shares, or allow any other pledge or
encumbrance to be created with respect to the pledged shares.
The Share Pledge Agreements remain effective until the full payment of Indonesian Opco’s
obligations under the Loan Agreement.
Exclusive Technical Service Agreement
Pursuant to the exclusive technical service agreement entered into between the Indonesian
WFOE and the Indonesian Opco on March 29, 2022 (the “Exclusive Technical Service
Agreement”), in exchange for service fees, the Indonesian Opco agreed to engage the
Indonesian WFOE as its exclusive provider to provide advice, guidance on business operations
and other organizational and management issues, such as (i) strategic and organizational
planning; (ii) decisions related to finance; (iii) marketing objectives and policies; (iv) human
resource planning, practices and policies; (v) planning scheduling and controlling production,
advisory assistance, guidance and operation of various management functions; (vi) design of
accounting methods and procedures, cost accounting programs, budget monitoring procedures;
and (vii) advice and assistance for business and community services.
Under the Exclusive Technical Service Agreement, the service fee payable to the Indonesian
WFOE will be equal to the net profits of the Indonesian Opco (revenue deducted by turnover
taxes, total expenses and retained profits), subject to adjustments at the Indonesian WFOE’s
discretion.
Without the Indonesian WFOE’s prior written consent, during the term of the Exclusive
Technical Service Agreement, the Indonesian Opco will not, directly or indirectly, accept
services pertaining to the Exclusive Technical Service Agreement provided by any third party.
Unless terminated in accordance with the provisions of the Exclusive Technical Service
Agreement, the Exclusive Technical Service Agreement shall remain effective perpetually.
Pursuant to the Exclusive Technical Service Agreement, all invention, modification, creation,
or design created or developed by The Indonesian WFOE during its performance of the
Exclusive Technical Service Agreement, and all related copyrights, trademarks, patents and all
other intellectual property rights shall be owned by The Indonesian WFOE. Where such
ownership is precluded due to the laws of the Republic Indonesia, Indonesian Opco shall sign
any documents and take, or cause to be taken, any other action necessary, to effect the complete
and irrevocable assignment of the said ownership rights to The Indonesian WFOE.
Power of Attorney
Pursuant to the powers of attorney to vote and powers of attorney to sell by and among the
Indonesian WFOE, the Indonesian Corporate Registered Shareholders and Indonesian Opco
executed on March 29, 2022, each Indonesian Corporate Registered Shareholder irrevocably
appointed the Indonesian WFOE as its attorney to do and perform, among others, the following
actions:
• to exercise all applicable shareholders’ voting and related rights with respect to such
shareholder’s equity interest, including to exercise the voting rights,
– 223 –
• to sign meeting minutes and other relevant documents on behalf of the Indonesian
Corporate Registered Shareholders, and
• to proceed with necessary approvals, registrations, filings or submissions with

governmental authorities.
The power of attorney will be irrevocable and remain continuously effective and valid until the
full payment of Indonesian Opco’s obligations under the Loan Agreement.
Spousal Consent and Undertakings
The spouse of each of the relevant Indonesian Individual Registered Shareholders, where
applicable, has signed undertakings to the effect that (i) she consents to her spouse entering
into the Indonesian Contractual Arrangements; (ii) acknowledges that the Indonesian
Contractual Arrangements entered into by her spouse will also be binding against her, (iii) has
no right to or control over any interests in the Indonesian Corporate Registered Shareholders
and will not have any claim on such interests; and (iv) she will sign all necessary documents
and take all necessary actions to ensure the Indonesian Contractual Arrangements are properly
performed.
Other Key Terms
Dispute Resolution
Each of the Exclusive Technical Service Agreement, the Loan Agreement, the Guarantee
Agreements, the Call Option Agreements and the Share Pledge Agreements provided that all
the disputes arising from the respective agreement, which cannot be resolved amicably, shall
be arbitrated in Hong Kong and submitted to the Hong Kong International Arbitration Center
for arbitration pursuant to its rules of arbitration. The arbitral award will be final and binding
upon all parties. To the extent permitted by applicable laws, the arbitration tribunal may grant
remedies including injunctive relief, remedies concerning the equity interest or assets of
Indonesian Opco, the Indonesian Corporate Registered Shareholders and orders winding up of
Indonesian Opco and the Indonesian Corporate Registered Shareholders. Under the Indonesian
laws, arbitration awards are final and binding to the parties, and the parties cannot appeal the
arbitration award in the Indonesian courts. Additionally, since the agreed arbitration location
is in Hong Kong (international arbitration award), in order for the award to be executable and
enforceable in Indonesia, such award must be recognized and acknowledged by Central Jakarta
District Court through its ratification or exequatur. The execution may then be carried out by
the district court of the relevant jurisdiction. To the extent permitted by applicable laws, when
awaiting the formation of the arbitral tribunal or otherwise under appropriate conditions,
parties to these agreements may seek preliminary injunctive relief or other interlocutory
remedies that will support the further arbitration process from a court with competent
jurisdiction to facilitate the arbitration. Subject to limitations under applicable laws, the courts
of Hong Kong, the Cayman Islands, China and Indonesia shall be deemed to have competent
jurisdiction.
Loss sharing
None of the agreements constituting the Indonesian Contractual Arrangements provides that
our Company or the Indonesian WFOE is obligated to share the losses of Indonesian Opco, but
if Indonesian Opco or any of its subsidiaries suffers any losses or material difficulties of
business, the Indonesian WFOE may adjust the amount or percentage of service fees at its
discretion to Indonesian Opco under the terms of the Exclusive Technical Service Agreement.
– 224 –
Further, under Indonesia laws and regulations, our Company or the Indonesian WFOE and its
subsidiaries are not expressly required to share the losses of Indonesian Opco or provide
financial support to Indonesian Opco. Despite the foregoing, given the results of operations and
assets and liabilities of the Indonesian Consolidated Affiliated Entities are consolidated into
our results of operations and assets and liabilities under the applicable accounting principles,
our business, financial condition and results of operations would be adversely affected if the
Consolidated Affiliated Entities suffered losses.
Liquidation
Pursuant to the Loan Agreement, in the event of default or a mandatory liquidation/insolvency

required by the Indonesian laws, the Indonesian WFOE shall be entitled to declare the loan
immediately due and payable and enforce the securities granted by the Indonesian Individual
and Indonesian Corporate Registered Shareholders and assets of the Indonesian Opco, which
will be used to settle the loan and be for the benefit of the Indonesian WFOE. The Indonesian
Corporate Registered Shareholders shall give the proceeds they received from liquidation as a
gift to the Indonesian WFOE or its designee(s) to the extent permitted by the Indonesian laws.
A liquidator may seize the relevant assets of the Indonesian Opco through the Indonesian
WFOE based on the Indonesian Contractual Arrangements for the benefit of our
creditors/shareholders.
Conflicts of interest
To ensure our effective control over the Indonesian Opco, we have incorporated terms in the
Indonesian Contractual Arrangements to protect against the potential conflicts of interest
between the Indonesian Individual and Indonesian Corporate Registered Shareholders and the
Indonesian WFOE. Under the Power of Attorney to Sell and the Power of Attorney to Vote, the
Indonesian Individual and Indonesian Corporate Registered Shareholders have irrevocably
appointed the Indonesian WFOE to exercise its rights in connection with matters concerning
its rights as a shareholder of the Indonesian Opco, including the rights to vote in a
shareholders’ meeting, to sign minutes and to sell its shares. For further details, see “– Power
of Attorney” in this section.
Based on the above, our Directors are of the view that the measures we have adopted are
sufficient to mitigate the risks associated with the potential conflicts of interest between our
Group and the Indonesian Individual and Indonesian Corporate Registered Shareholders.
Death, bankruptcy and/or divorce of the Indonesian Individual Registered Shareholders
Pursuant to Article 3 paragraph 1 of Law Number 40 of 2007 on Limited Liability Company

as partially amended by the Job Creation Law (the “Indonesian Company Law”), unless the
company is not incorporated properly and the shareholders conduct any unlawful and bad faith
acts, the shareholders of a limited liability company are not personally liable for any contracts
entered by the company and the company’s losses extending beyond the value of their shares.
The shareholders of a limited liability company are also not personally liable for the
obligations of the company because the limited liability company is a separate legal body and
independent with its shareholders. Therefore, the shareholders are only liable for up to the
amount of capital they invest into the company.
As confirmed by our Indonesian Legal Adviser, (i) the Indonesian Opco is incorporated
properly in accordance with the Indonesian Company Law, and (ii) the Indonesian Contractual
Arrangements have complied with the requirement of Article 98 of the Indonesian Company
Law and the Indonesian Opco’s articles of association. Therefore, the Indonesian Contractual
– 225 –
Arrangements entered into remain binding against the Indonesian Opco in the occurrence of the
death, bankruptcy and/or divorce of the Indonesian Individual Registered Shareholders and/or
the Indonesian Corporate Registered Shareholders and their successors (as the case may be).
In particular, the Indonesian Contractual Arrangements shall prevail over their respective wills,
divorce agreements, debt arrangements and other legal instruments entered into by him/her.
Accordingly, there are appropriate arrangements in place to protect the interest of the
Indonesian WFOE in the event of death, bankruptcy and/or divorce of the Indonesian
Individual Registered Shareholders and/or the Indonesian Corporate Registered Shareholders
(as the case may be), and practical difficulties in enforcing the Indonesian Contractual
Arrangements have been avoided.
Insurance
We do not maintain an insurance policy to cover the risks relating to the Indonesian Contractual
Arrangements.
Legality of the Indonesian Contractual Arrangements
Our Indonesian Legal Adviser, after taking reasonable enquiries and due diligence, has
confirmed that the Indonesian Contractual Arrangements are legally binding and enforceable
on the Indonesian Individual Registered Shareholders and the Indonesian Corporate Registered
Shareholders, comply in fact and in good faith with all relevant laws and regulations of
Indonesia, and will not be deemed as “concealing illegal intentions with a lawful form” and be
voided under the laws and regulations currently prevailing in Indonesia and are only used to
the extent necessary and are narrowly tailored to minimize potential conflict under the
applicable laws and regulations to address the relevant foreign shareholding or ownership
limits or restrictions under Indonesian laws.
Pursuant to Article 33 Paragraph 1 of the Investment Law, domestic and foreign investors are
prohibited from entering into an agreement or and/or issuing a statement to confirm that their
ownership of shares in a limited liability company is held for and in the name of another
person. Where a domestic investor and a foreign investor enter into an agreement and/or make
a statement to the effect that their ownership of shares in a company is held for and in the name
of another person, such an agreement and/or statement will be declared to be void by operation
of law.
Our Indonesian Legal Adviser confirms that none of the Indonesian Contractual Arrangements
entered into by our Indonesian Individual Registered Shareholders and Indonesian Corporate
Registered Shareholders contains any statement that their direct or indirect ownership of shares
in our Indonesian Opco is for and in the name of our Indonesian WFOE. The Indonesian
Contractual Arrangements are common loan transactions whereby the Indonesian Corporate
Registered Shareholders still remain as the registered and legal owners of 100% of the shares
in the Indonesian Opco, notwithstanding that 100% of the shares in the Indonesian Opco have
been pledged to the Indonesian WFOE and all the shares in the Indonesian Corporate
Registered Shareholders have also been pledged to the Indonesian WFOE as security for the
Loan Agreements and the Indonesian Corporate Registered Shareholders have also: (i) assigned
their dividends; (ii) granted an exclusive call option; and (iii) executed powers of attorney to
sell its shares in the Indonesian Opco to the Indonesian WFOE to secure the loans.
Furthermore, the Indonesian Corporate Registered Shareholders has also executed a power of
attorney in favor of the Indonesian WFOE to allow for the Indonesian WFOE to exercise its
voting rights as shareholders of the Indonesian Opco.
– 226 –
In the occurrence of an event of default under the Indonesian Contractual Arrangements, the
Indonesian WFOE will have the right to enforce the security documents including without
limitation to cause the shares registered under the name of the Indonesian Corporate Registered
Shareholders in the Indonesian Opco to be transferred to the Indonesian WFOE or any party
it designates.
The Indonesian Contractual Arrangements have met the elements required to establish a
contract as stipulated in Article 1320 of the Indonesian Civil Code, which includes: (i) consent,
where both the Indonesian WFOE and the Indonesian Individual and Indonesian Corporate
Registered Shareholders have agreed to enter into the series of Indonesian Contractual
Arrangements; (ii) capacity, whereby both the Indonesian WFOE and the Indonesian Individual
and Indonesian Corporate Registered Shareholders possess the legal capacity to enter into the
Indonesian Contractual Arrangements; (iii) subject, whereby the subject of the Indonesian
Contractual Arrangements is loan transactions; and (iv) lawful cause, the Indonesian
Contractual Arrangements are not contrary to public order in Indonesia.
After taking reasonable actions and steps, our Indonesian Legal Adviser is of the opinion that
there are no laws and regulations in Indonesia specifically disallowing foreign investors to
provide loan facilities to Indonesian shareholders to gain contractual control of a foreign
restricted business, and neither the execution of the Indonesian Contractual Arrangements, nor
the compliance by the Indonesian WFOE and the Indonesian Individual and Indonesian
Corporate Registered Shareholders with or performance of the terms and provisions thereof
would: (a) contravene any judgment, decree or order of any court, arbitrator, administrative
agency or other governmental institution to which the Indonesian WFOE and the Indonesian
Individual Registered Shareholders and Indonesian Corporate Registered Shareholders or any
of its assets are subject; (b) violate any provisions of the Indonesian Opco’s articles of
association; and (c) violate or contravene any provisions of the laws, rules or regulations in
Indonesia by the Indonesian WFOE, the Indonesian Individual Registered Shareholders and
Indonesian Corporate Registered Shareholders and the Indonesian Opco, each being a party to
the Indonesian Contractual Arrangements.
Our Indonesian Legal Adviser has further opined that the Indonesian Contractual Arrangements
have not encountered any interference or encumbrance from any governing bodies of Indonesia
and are in compliance with the prevailing laws and regulations of Indonesia during the Track
Record Period and as of the Latest Practicable Date. Our Indonesian Legal Adviser have also
confirmed that given the Contractual Arrangements are within the domain of private law in
Indonesia which focuses on legal relationship between two parties based on the principle of
freedom of contract under Article 1338 of Indonesian Civil Code that all agreements made
legally shall apply as the law between the parties thereto, the Indonesian government will not
be involved in the use of the Indonesian Contractual Arrangements or any disputes with regards
to its legality.
In January 2022, we have also, with our Indonesian Legal Adviser, conducted a formal
interview with the relevant government authority, namely (i) the Coordinator of Commercial
Postal Services; (ii) an officer of the Directorate of Postal Affairs; (iii) an officer of the
Directorate of Postal Affairs; (iv) the Sub-coordinator of the Governance of Commercial Postal
Services; (v) the Sub-coordinator of the Tariff of Commercial Postal Services; (vi) the
Sub-coordinator of Data and Information of Commercial Postal Services; (vii) the Sub-
coordinator of the Postal Industry Development; and (viii) the Sub-coordinator of Postal
Cooperation, all of whom are from the MOCI which is the main supervising authority of our
operations in Indonesia, and obtained verbal guidance from a contact center service officer
from BKPM, which is the agency overseeing foreign investments in Indonesia.
– 227 –
During the consultation with the MOCI and BKPM, the officers confirmed that: (i) a foreign
investor who is not a Foreign Postal Operator cannot hold any equity interest in an Indonesian
Postal Services Company, (ii) in limited circumstances, a Foreign Postal Operator can hold
equity interest in a Postal Services Company by forming a joint venture company with an
Indonesian domestic company in compliance with the Partnership Requirements, (iii) the
Foreign Postal Operators can only obtain shares in a new joint venture to engage in Postal
Services, and should not subscribe or purchase shares in an existing domestic Indonesian Postal
Services Company with a nationwide coverage, and (iv) when all conditions under the
Partnership Requirements are met, the Foreign Postal Operator can hold up to 49% of equity
interest in the joint venture entity that provides KBLI 53201 courier services. Officers from
both MOCI and BKPM have further confirmed that the Indonesian Contractual Arrangements
are under the domain of private law in Indonesia, and MOCI does not regulate, supervise or
intervene in the use or any dispute over the legality or enforceability of the Contractual
Arrangements. BKPM advised that that BKPM would only supervise whether companies
conduct their business in accordance with their licenses. BKPM does not supervise, and will
not intervene in, the business arrangements adopted by private parties or any privately
executed agreements.
This effectively allows the Company, as a foreign investor, to indirectly control an Indonesian
company which engages in Postal Services. After making reasonable enquiries and due
diligence, our Indonesian Legal Adviser has opined that the adoption of the Indonesian
Contractual Arrangements by the Company is unlikely to be deemed ineffective or invalid
under the applicable laws and regulations in Indonesia. Further, our Indonesian Legal Adviser
is of the view that the Contractual Arrangements are used to the extent necessary under the
applicable laws and regulations in Indonesia to address the relevant foreign shareholding or
ownership limits or restrictions only, and have been narrowly tailored to minimize the potential
conflict with relevant Indonesian laws and regulations and enables the Group to achieve the
contractual control over Indonsian Opco which engages in postal services within Indonesia.
Our Indonesian Legal Adviser has confirmed that it has taken all possible actions and steps to
enable it to reach the above legal conclusions and opinions. In light of the above opinion from
our Indonesian Legal Adviser and as the Indonesian Contractual Arrangements have not
encountered any interference or encumbrance from any governing bodies of Indonesia during
the Track Record Period and up to the Latest Practicable Date, our Directors are of the view
that the Indonesian Contractual Arrangements are enforceable under the relevant Indonesian
laws and regulations.
ACCOUNTING ASPECTS OF THE INDONESIAN CONTRACTUAL ARRANGEMENTS
Consolidation of financial results of operating entities
According to IFRS 10 – Consolidated Financial Statements, a subsidiary is an entity that is

controlled by another entity (known as the parent). An investor controls an investee when it is
exposed, or has rights to variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee.
– 228 –
As a result of the Indonesian Contractual Arrangements among the Indonesian WFOE,

Indonesian Opco and the Indonesian Individual Registered Shareholders and Corporate
Registered Shareholders, the Indonesian WFOE has rights to exercise power over Indonesian
Opco and its subsidiaries, receives variable returns from its involvement in Indonesian Opco
and its subsidiaries, has the ability to affect those returns through its power over Indonesian
Opco and its subsidiaries and is considered to control Indonesian Opco and its subsidiaries.
Consequently, the Company regards Indonesian Opco and its subsidiaries as controlled entities
and consolidates the assets, liabilities and results of operations of Indonesian Opco and its
subsidiaries in the consolidated financial information of the Group.
COMPLIANCE WITH THE INDONESIAN CONTRACTUAL ARRANGEMENTS
Our Group has adopted the following measures to ensure the effective operation of our Group
with the implementation of the Indonesian Contractual Arrangements and our compliance with
the Indonesian Contractual Arrangements:
1. major issues arising from the implementation and compliance with the Indonesian
Contractual Arrangements or any regulatory enquiries from government authorities will
be submitted to our Board, if necessary, for review and discussion as and when they arise;
2. our Board will review the overall performance of and compliance with the Indonesian
Contractual Arrangements at least once a year;
3. our Company will disclose the overall performance of and compliance with the
Indonesian Contractual Arrangements in our annual reports; and
4. our Company will engage external legal advisers or other professional advisers, if
necessary, to assist the Board to review the implementation of the Indonesian Contractual
Arrangements, to review the legal compliance of the Indonesian WFOE and Indonesian
Opco and to deal with specific issues or matters arising from the Indonesian Contractual
Arrangements.
– 229 –
CONTINUING CONNECTED TRANSACTIONS
OVERVIEW
We have in the past conducted certain transactions with entities that will become our connected
persons upon [REDACTED]. The transactions disclosed in this section will continue after
[REDACTED] and will therefore constitute our non-exempt continuing connected transactions
under the Listing Rules.
SUMMARY OF OUR NON-EXEMPT CONTINUING CONNECTED TRANSACTIONS
We have entered into the following transactions that will constitute non-exempt continuing
connected transactions under Rule 14A.31 of the Listing Rules upon [REDACTED].
Proposed annual cap for the

years ending December 31,
Applicable
Transactions Listing Rules Waivers sought 2023 2024 2025
(RMB in millions)
Contractual 14A.34, 14A.35, Announcement, N/A N/A N/A

Arrangements 14A.36, 14A.52, independent
14A.53 to 59, shareholders’
14A.71 and approval, annual
14A.105 cap, and three
year term
requirements
Contractual Arrangements
Background
As disclosed in “Contractual Arrangements”, due to regulatory restrictions on foreign

ownership in the PRC and Indonesia, we conduct a substantial portion of our business through
our Consolidated Affiliated Entities in the PRC and Indonesia.
We do not hold any equity interests in our Consolidated Affiliated Entities. Rather, through the
Contractual Arrangements, we effectively control these Consolidated Affiliated Entities and are
able to derive substantially all of their economic benefits, and expect to continue to do so.
See “Contractual Arrangements” for further detailed terms of the Contractual Arrangements.
Listing Rules implications
For the purpose of Chapter 14A of the Listing Rules, and in particular the definition of
‘connected person’, our Consolidated Affiliated Entities will be treated as our Company’s
subsidiaries, but at the same time, the directors, chief executives or substantial shareholders of
the Consolidated Affiliated Entities and its associates will be treated as connected persons of
our Company as applicable under the Listing Rules (excluding for this purpose, the
Consolidated Affiliated Entities themselves). Therefore, the transactions contemplated under
the Contractual Arrangements constitute continuing connected transactions of our Company
under the Listing Rules upon [REDACTED].
– 230 –
The highest applicable percentage ratios (other than the profits ratio) under the Listing Rules
in respect of the transactions associated with the Contractual Arrangements are expected to be
more than 5%. As such, the transactions will be subject to the reporting, annual review,
announcement and independent shareholders’ approval requirements under Chapter 14A of the
Listing Rules.
Reasons for the transaction and the waiver application
Our Directors (including the independent non-executive Directors) are of the view that the
Contractual Arrangements and the transactions contemplated therein are fundamental to our
legal structure and business operations. Our Directors also believe that our structure, whereby
the financial results of our Consolidated Affiliated Entities are consolidated into our financial
statements as if they were our Company’s wholly-owned subsidiaries, and all the economic
benefits of their business flows to our Group, places our Group in a special position in relation
to the connected transactions rules. Accordingly, notwithstanding that the transactions
contemplated under the Contractual Arrangements and any new transactions, contracts and
agreements or renewal of existing transactions, contracts and agreements to be entered into,
among others, by our Consolidated Affiliated Entities and any member of our Group from time
to time (including Consolidated Affiliated Entities) (the “New Intergroup Agreements”)
technically constitute continuing connected transactions under Chapter 14A of the Listing
Rules, our Directors consider that it would be unduly burdensome and impracticable, and
would add unnecessary administrative costs to our Company, for all such transactions to be
subject to strict compliance with the requirements set out under Chapter 14A of the Listing
Rules, including, among other things, the announcement and independent shareholders’
approval requirements.
WAIVERS
In respect of the Contractual Arrangements and New Intergroup Agreements, we have applied
to the Stock Exchange for, and the Stock Exchange [has granted] us, a waiver from strict
compliance with (i) the announcement, circular and independent Shareholders’ approval
requirements under Rule 14A.105 of the Listing Rules, (ii) the requirement to set a term of
three years or less under Rule 14A.52 of the Listing Rules, and (iii) the requirement of setting
annual caps for the transaction under the Contractual Arrangements under Rule 14A.53 of the
Listing Rules, for so long as our Class B Shares are [REDACTED] on the Stock Exchange,
subject, however, to the following conditions:
(a) No change without independent non-executive Directors’ approval
No change to the Contractual Arrangements (including with respect to any fees payable
to the PRC and Indonesian WFOEs thereunder) will be made without the approval of our
independent non-executive Directors.
(b) No change without independent Shareholders’ approval
Save as described below, no change to the agreements governing the Contractual

Arrangements will be made without the independent Shareholders’ approval. Once
independent Shareholders’ approval of any change has been obtained, no further
announcement or approval of the independent Shareholders will be required under
Chapter 14A of the Listing Rules unless and until further changes are proposed. The
periodic reporting requirement regarding the Contractual Arrangements in the annual
reports of our Company will, however, continue to be applicable.
– 231 –
(c) Economic benefit flexibility
The Contractual Arrangements shall continue to enable our Group to receive the
economic benefits derived by the Consolidated Affiliated Entities through (i) our Group’s
option (to the extent permitted under the applicable PRC and Indonesian laws) to acquire
all or part of the entire equity interests and assets at a consideration which shall be the
higher of (a) a nominal price or (b) the lowest price as permitted under applicable PRC
and Indonesian laws, (ii) the business structure under which the profit generated by the
Consolidated Affiliated Entities is substantially retained by our Group, such that no
annual cap shall be set on the amount of service fees payable to the WFOEs by the
Consolidated Affiliated Entities under the Contractual Arrangements, and (iii) our
Group’s right to control the management and operation of, as well as the substance of, all
of the voting rights of the Consolidated Affiliated Entities.
(d) Renewal and reproduction
On the basis that the Contractual Arrangements provide an acceptable framework for the
relationship between the Company and its subsidiaries in which the Company has
shareholding, on the one hand, and the Consolidated Affiliated Entities, on the other hand,
such framework may be renewed and/or reproduced without an announcement, circular,
or obtaining the approval of the Shareholders (i) upon the expiry of the existing
arrangements, (ii) in connection with any changes to the shareholders or directors of, or
of their shareholdings in, the Consolidated Affiliated Entities, or (iii) in relation to any
existing, new or acquired wholly foreign-owned enterprise or operating company
(including branch companies) engaging in a business similar or relating to those of the
Group, on substantially the same terms and conditions as the existing Contractual
Arrangements. The directors, chief executive or substantial shareholders of any existing
or new wholly foreign-owned enterprise or operating company (including branch
companies) engaging in the same business as that of our Group which our Group may
establish will, upon renewal and/or reproduction of the Contractual Arrangements,
however, be treated as connected persons of our Company and transactions between these
connected persons and our Company other than those under similar contractual
arrangements shall comply with Chapter 14A of the Listing Rules. This condition is
subject to relevant PRC or Indonesian laws, regulations and approvals.
(e) Ongoing reporting and approvals
We will disclose details relating to the Contractual Arrangements on an on-going basis as

follows:
• The Contractual Arrangements in place during each financial period will be

disclosed in our Company’s annual reports and accounts in accordance with the
relevant provisions of the Listing Rules.
• Our independent non-executive Directors will review the Contractual Arrangements

annually and confirm in our Company’s annual reports for the relevant years that (i)
the transactions carried out during such year have been entered into in accordance
with the relevant provisions of the Contractual Arrangements, (ii) no dividends or
other distributions have been made by the Consolidated Affiliated Entities to the
holders of its equity interests which are not otherwise subsequently assigned or
transferred to our Group, and (iii) any new contracts entered into, renewed or
reproduced between our Group and the Consolidated Affiliated Entities during the
relevant financial period under paragraph (d) above are fair and reasonable, or
advantageous to our Shareholders, so far as our Group is concerned and in the
interests of our Company and our Shareholders as a whole.
– 232 –
• Our Company’s auditors will carry out review procedures annually on the
transactions, pursuant to the Contractual Arrangements, and will provide a letter to
our Directors with a copy to the Stock Exchange confirming that the transactions
have received the approval of our Directors, have been entered into in accordance
with the relevant Contractual Arrangements, and that no dividends or other
distributions have been made by our Consolidated Affiliated Entities to the holders
of its equity interests which are not otherwise subsequently assigned or transferred
to our Group.
• For the purpose of Chapter 14A of the Listing Rules, and in particular the definition
of “connected person”, our Consolidated Affiliated Entities will be treated as our
Company’s subsidiaries, and at the same time, the directors, chief executives or
substantial shareholders of the Consolidated Affiliated Entities and their respective
associates will be treated as connected persons of our Company (excluding, for this
purpose, the Consolidated Affiliated Entities), and transactions between these
connected persons and our Group (including, for this purpose, the Consolidated
Affiliated Entities), other than those under the Contractual Arrangements, will be
subject to requirements under Chapter 14A of the Listing Rules.
• Our Consolidated Affiliated Entities will undertake that, for so long as the Class B
Shares are [REDACTED] on the Stock Exchange, the Consolidated Affiliated
Entities will provide our Group’s management and our Company’s auditors full
access to its relevant records for the purpose of our Company’s auditors’ review of
the connected transactions.
In the event of any future amendments to the Listing Rules imposing more stringent
requirements than those applicable as of the Latest Practicable Date on the continuing
connected transactions referred to in this section, we will take immediate steps to ensure
compliance with such new requirements within a reasonable time.
DIRECTORS’ CONFIRMATION
Our Directors (including independent non-executive Directors) are of the view that the
Contractual Arrangements and the transactions contemplated therein are fundamental to our
Group’s legal structure and business, that such transactions have been and will be entered into
in the ordinary and usual course of business of our Group, are on normal commercial terms and
are fair and reasonable and in the interests of our Company and the Shareholders as a whole,
and it is normal business practice for the Contractual Arrangements to be of a term greater than
three years. Accordingly, notwithstanding that the transactions contemplated under the
Contractual Arrangements technically constitute continuing connected transactions under
Chapter 14A of the Listing Rules, the Directors consider that, given that our Group is placed
in a special situation in relation to the connected transactions rules under the Contractual
Arrangements, it would be unduly burdensome and impracticable, and would add unnecessary
administrative costs to our Company if such transactions are subject to strict compliance with
the requirements set out under Chapter 14A of the Listing Rules.
– 233 –
CONFIRMATION BY THE JOINT SPONSORS
The Joint Sponsors have (i) reviewed the relevant documents and information provided by the
Group, and (ii) participated in the due diligence and discussion with the management of the
Company. Based on the above, the Joint Sponsors are of the view that the continuing connected
transactions set out above have been and will continue to be carried out in the ordinary and
usual course of business of the Company and on normal commercial terms or better, and are
fair and reasonable and in the interests of the Company and its Shareholders as a whole; and
it is normal business practice for the Contractual Arrangements to be of a term greater than
three years.
– 234 –
DIRECTORS AND SENIOR MANAGEMENT
Upon [REDACTED], our Board will consist of seven Directors, including one executive
Director, three non-executive Directors and three independent non-executive Directors. The
following table provides certain information about our Directors:
Date of
appointment
Date of as a Director
joining the of the Roles and
Name Age Position(s) Group Company responsibilities
Mr. Jet Jie Li 48 Founder, Executive June 2015 May 15, 2020 Overall strategic
(李傑先生) Director, chairman planning and
of the Board and business
Chief Executive direction
Officer
Ms. Alice 61 Non-executive May 2020 May 15, 2020 Provide strategic
Yu-fen Cheng Director advice to
(鄭玉芬女士) the Board
Ms. Qinghua Liao 52 Non-executive March 2022 March 3, 2022 Provide strategic
(廖清華女士) Director advice to
the Board
Mr. Yuan Zhang 54 Non-executive May 2020 May 15, 2020 Provide strategic
(張源先生) Director advice to
the Board
Mr. Charles 39 Independent [REDACTED]* [REDACTED]* Provide

Zhaoxuan Yang non-executive independent
(楊昭烜先生) Director opinion and
judgment to the
Board
Mr. Erh Fei Liu 64 Independent [REDACTED]* [REDACTED]* Provide

(劉二飛先生) non-executive independent
Director opinion and
judgment to the
Board
Mr. Peng Shen 35 Independent [REDACTED]* [REDACTED]* Provide

(沈鵬先生) non-executive independent
Director opinion and
judgment to the
Board
* Note: The appointments of Mr. Erh Fei Liu, Mr. Peng Shen and Mr. Charles Zhaoxuan Yang as our independent
non-executive Directors will take effect on the [REDACTED].
– 235 –
Executive Director
Mr. Jet Jie Li ( 李傑先生)
Mr. Jet Jie Li (“Mr. Li”), aged 48, is our founder, executive Director, Chief Executive Officer
and chairman of the Board. Mr. Li is responsible for setting the strategic vision, direction and
goals of our Group.
Mr. Li founded the J&T brand in Indonesia in June 2015 and has since leveraged on the
Group’s success to expand globally. Mr. Li used his extensive sales and entrepreneurial
experience including his comprehensive understanding of Southeast Asian culture to drive our
Group’s rapid growth. Currently, our Group’s core operations span across China and seven
Southeast Asian countries, including Vietnam, Malaysia, the Philippines, Thailand, Cambodia
and Singapore. We have also recently made forays into other foreign markets including Saudi
Arabia, UAE, Mexico, Brazil and Egypt.
Prior to founding our Group, Mr. Li spent more than 15 years of his career with OPPO, a
Chinese consumer electronics and mobile communications company, where he was responsible
for leading its global expansion efforts into Indonesia as well as other Asian markets such as
Singapore, Malaysia and Japan. He served as the founder and Chief Executive Officer of
OPPO’s first overseas exclusive sales agent, PT. Indonesia OPPO Electronics from February
2013 to June 2015. Previously, Mr. Li also served as general manager of Nanjing Baisheng
Oppo Communication Equipment Co., Ltd. (南京百勝歐珀通訊設備有限公司) from February
2008 to February 2013, where he was responsible for the distribution of OPPO products in the
Jiangsu and Anhui provinces; and as department manager at Jiangsu Baisheng Electronic Co.,
Ltd (江蘇百勝電子有限公司) from January 1999 to February 2008, where he was responsible
for the sales of audiovisual products. In recognition of Mr. Li’s significant contribution, the
OPPO headquarters established the “Jet Lee” award in honor of Mr. Li to reward top
salespeople in the global sales agencies.
Mr. Li obtained his bachelor’s degree in marketing from the University of Science and
Technology Beijing, the PRC, in 1998.
Ms. Alice Yu-fen Cheng ( 鄭玉芬女士)
Ms. Alice Yu-fen Cheng (“Ms. Cheng”), aged 61, is our non-executive Director. She is
primarily responsible for providing strategic advice to the Board.
Previously, Ms. Cheng held various positions with Acer Inc., a Taiwanese computer
manufacturer, culminating in the position of financial controller, from August 1988 to
December 2002. From December 2002 to May 2005, Ms. Cheng served as a financial controller
of Wistron Corporation, a Taiwanese original design manufacturer of notebook computers and
other electronics. From May 2005 to July 2021, Ms. Cheng served as the chief financial officer
of Guangdong BBK Electronics Industry Co., Ltd. (廣東步步高電子工業有限公司), a PRC-
based manufacturer of audio-visual equipment, telephones and learning machines.
Ms. Cheng has been serving as an independent director of NetEase, Inc. (NASDAQ: NTES;
HKEX: 9999) since June 2007 and is currently a member of their audit committee,
compensation committee, nominating committee, and Environmental, Social and Governance
Committee.
– 236 –
Ms. Cheng received a Bachelor’s of Accounting from the Chinese Culture University in Taiwan
in June 1983 and a Master of Business Administration in International Management from
Thunderbird, the American Graduate School of International Management, the United States in
December 2003. Ms. Cheng also received her license as a certified public accountant in Taiwan
and the PRC in August 1993 and December 1994, respectively.
Ms. Qinghua Liao ( 廖清華女士)
Ms. Qinghua Liao (“Ms. Liao”), aged 52, is our non-executive Director. She is primarily
responsible for providing strategic advice to the Board.
Prior to joining our Group, Ms. Liao held various positions in Zhongshan Xiaobawang
Electronic Industry Co., Ltd. (中山小霸王電子工業有限公司), including development officer
and assistant general manager, from April 1994 to July 1995. Ms. Liao then joined Guangdong
BBK Electronics Industry Co., Ltd. (廣東步步高電子工業有限公司), where she spent more
than 10 years of her career from August 1995 to October 2005, in different roles including the
head of the human resources department, head of the adjustment and planning department,
general manager, assistant factory director for the electronic gaming branch and head of the
total quality management department for the electronic gaming branch, where she oversaw the
operations and quality control processes within the Company. She then joined BBK Education
Electronics Co., Ltd. (步步高教育電子有限公司), where she served as head of the systems
management department from November 2005 to July 2015 and chief information officer from
July 2015 to March 2020. Ms. Liao has served as the operations manager of Guangdong
Xiaotiancai Technology Co., Ltd. (廣東小天才科技有限公司) since March 2020.
Ms. Liao obtained her bachelor’s degree in Information Management from Central China
Normal University, the PRC in July 1992.
Mr. Yuan Zhang ( 張源先生)
Mr. Yuan Zhang (“Mr. Zhang”), aged 54, is our non-executive Director. He is primarily
responsible for providing strategic advice to the Board.
Mr. Zhang served as the general manager of the Nanjing Branch of Zhongshan Xiaobawang
Electronic Industry Co., Ltd. (中山市小霸王電子工業有限公司南京分公司) from December
1991 to December 1996. He has served as the founder, chairman and general manager of
Jiangsu Baisheng Electronic Co., Ltd (江蘇百勝電子有限公司) since January 1997.
Mr. Zhang obtained a bachelor’s degree in electronic engineering where he majored in radio
technology, from Shanghai Jiao Tong University, the PRC, in July 1990.
Independent Non-executive Directors
Mr. Charles Zhaoxuan Yang ( 楊昭烜先生)
Mr. Charles Zhaoxuan Yang (“Mr. Yang”), aged 39, has been appointed as an independent
non-executive Director of our Company and his appointment will take effect from the
[REDACTED]. He is primarily responsible for supervising and providing independent
judgement to the Board and serving as chairman and members of certain committees of the
Board.
– 237 –
He has served as chief financial officer of NetEase, Inc. (NASDAQ: NTES; HKEX: 9999)
since June 2017. Prior to that, Mr. Yang was an executive director in the Global Investment
Banking Department at J.P. Morgan Securities (Asia Pacific) Limited and was based in Hong
Kong for almost a decade. Mr. Yang has served as an independent director on the board of
So-Young International Inc. (NASDAQ: SY), since May 2019; and Kanzhun Limited
(NASDAQ: BZ and HKEX: 2076) since June 2021.
Mr. Yang obtained a bachelor’s degree from Wesleyan University, the United States, with
majors in economics and mathematics in May 2007 and a master’s degree in business
administration from the University of Hong Kong in November 2016. Mr. Yang is a Certified
Public Accountant licensed in the State of Michigan and Hong Kong.
Mr. Erh Fei Liu ( 劉二飛先生)
Mr. Erh Fei Liu (“Mr. Liu”), aged 64, has been appointed as an independent non-executive
Director of our Company and his appointment will take effect from the [REDACTED]. He is
primarily responsible for supervising and providing independent judgement to the Board and
serving as chairman and members of certain committees of the Board.
Mr. Liu is currently Chief Executive Officer and Founding Partner at Asia Investment Capital
Ltd. and Chief Executive Officer of Asia Investment Fund. He was previously a co-founder of
Cindat Capital Management Limited (“Cindat”), a global real estate investment platform. Prior
to founding Cindat, Mr. Liu had a successful career as an investment banker. Mr. Liu worked
as senior management in various financial institutions such as the head of investment banking
for China at Goldman Sachs Group, Inc., the Managing Director of Merrill Lynch (Asia
Pacific) Limited and the chairman of China region of Merrill Lynch Group. He was awarded
the Asian Banker Skills-based Achievements Award in investment banking in 2006 by The
Asian Banker.
Mr. Liu has been an independent non-executive director of Qingling Motors Co. Ltd (HKEX:
1122) and VNET Group, Inc. (formerly known as 21Vianet Group, Inc., NASDAQ: VNET)
since May 2015; and Frontage Holdings Corporation (HKEX: 1521) since April 2018. Mr. Erh
Fei Liu was an independent non-executive director of Fortunet e-Commerce Group Limited
(now known as Changyou Alliance Group Limited, HKEX: 1039), from March 2015 to April
2017; and Jiangxi Copper Company Limited from July 2016 to October 2022 (HKEX: 0358 and
listed on the Shanghai Stock Exchange with stock code 600362).
Mr. Liu graduated from Harvard Business School, the United States, in June 1987 with a
master’s degree in business administration.
Mr. Peng Shen (沈鵬先生)
Mr. Peng Shen (“Mr. Shen”), aged 35, has been appointed as an independent non-executive
Director of our Company and his appointment will take effect from the [REDACTED]. He is
primarily responsible for supervising and providing independent judgement to the Board and
serving as chairman and members of certain committees of the Board.
Mr. Peng Shen is the founder and currently serves as the chairman of board of directors and
chief executive officer of Waterdrop Inc. (NYSE: WDH). Prior to founding Waterdrop in 2016,
in January 2010, Mr. Shen joined Meituan (HKSE: 03690), a leading e-commerce platform in
China, at its early stage. He was also one of the founding team members of Meituan Waimai,
which provides food delivery services. Mr. Shen participated in the operations of Meituan
Waimai from September 2013 to April 2016, where he was responsible for different matters
– 238 –
including internet R&D, formulating operational rules, and establishing and managing the
business systems. In honor of his contributions to China’s insurtech industry, digital clinical
trial solutions business and other fields, as well as the establishment and operation of
Waterdrop, Mr. Shen was named to Fortune China’s list of the “2020 40 under 40 in China” and
World Economic Forum’s list of “2022 Young Global Leaders”.
Mr. Shen received a master’s degree in retail management from NEOMA Business School,
France, in October 2013, an EMBA from Tsinghua University School of Economics and
Management, PRC, in July 2019 and the degree of Doctor of Hotel and Tourism Management
from the Hong Kong Polytechnic University in September 2022.
SENIOR MANAGEMENT
The following table provides information about members of the senior management of the
Company:
Date of
joining the Roles and
Name Age Position(s) Group responsibilities
Mr. Jet Jie Li 48 Founder, Executive June 2015 Overall strategic
(李傑先生) Director, chairman planning and
of the Board and business direction
Chief Executive
Officer
Mr. Steven 37 Executive President June 2015 Overall strategic

Suzhou Fan planning,
(樊蘇洲先生) organizational
development and
overseeing
business
operations of our
Group
Mr. Charles 54 Vice President October 2019 Overall strategic

Junyi Hou planning, general
(后軍儀先生) management and
execution of
business
operations of our
Group
Mr. Dylan Say 45 Chief Financial August 2021 Responsible for

Keong Tey Officer overseeing our
(鄭世強先生) Group’s finance,
legal, investments
and capital
market activities
– 239 –
Mr. Jet Jie Li (李傑先生)
Mr. Jet Jie Li, aged 48 is our founder, executive Director, chairman of the Board and Chief
Executive Officer of our Company. For details of his biography, see “– Directors and Senior
Management – Executive Director” in this section.
Mr. Steven Suzhou Fan (樊蘇洲先生)
Mr. Steven Suzhou Fan (“Mr. Fan”), aged 37, is our Executive President and is responsible for
the overall strategic planning, organizational development and overseeing the business
operations of our Group.
Mr. Fan joined our Group and served as the regional sponsor in Bandung of West Java,
Indonesia from June 2015 to September 2019, where he was responsible for coordinating the
express delivery business in that region. Mr. Fan has served as our Executive President since
January 2019.
Prior to joining our Group, Mr. Fan was a business supervisor at Nanjing Baisheng Oppo
Communication Equipment Co., Ltd. (南京百勝歐珀通訊設備有限公司) from January 2009 to
March 2013, where he was responsible for the distribution of OPPO’s products in the Jiangsu
province. He served as general manager of West Java at PT. Indonesia OPPO Electronics from
February 2013 to June 2015.
Mr. Fan obtained a bachelor’s degree in marketing from Henan Normal University, the PRC,
in July 2008.
Mr. Charles Junyi Hou (后軍儀先生)
Mr. Charles Junyi Hou (“Mr. Hou”), aged 54, is our Vice President. Mr. Hou joined our Group
in October 2019 as Vice President and is responsible for the overall strategic planning, general
management and execution of the business operations of our Group.
Mr. Hou has extensive experience in the logistics and international and domestic express
delivery industries. He spent more than 15 years of his career with DHL – Sinotrans Ltd.
(“DHL Express”), where he held various roles across multiple business units spanning
information technology, gateway operations and ground operations before culminating in the
position of Greater China Area Senior Adviser.
Mr. Hou then joined Shunfeng Express (Group) Limited (順豐速運(集團)有限公司), where he
served as operations director from October 2010 to October 2013. He then served as senior
operations director of YTO Express (Logistics) Co., Ltd (“YTO Express”) (圓通速遞有限公
司) from April 2014 to September 2015. Mr. Hou then expanded his career experience as an
independent management consultant before serving as the co-founder and vice president of
Shanghai Baisong Internet of Things Technology Co., Ltd. (上海佰頌物聯網科技有限公司)
from April 2017 to July 2018. From July 2018 to October 2019, he served as deputy general
manager of On Time Promise (承諾達特快) business unit in the YTO Group (圓通蛟龍集團).
Mr. Hou obtained his bachelor’s degree in computer science from Shanghai Science and
Technology University (currently known as Shanghai University), the PRC, in July 1989. He
further obtained a master’s degree of business administration from the joint MBA program
between Webster University, the United States and Shanghai University of Finance and
Economics, in December 2009.
– 240 –
Mr. Dylan Say Keong Tey (鄭世強先生)
Mr. Dylan Say Keong Tey (“Mr. Tey”), aged 45, joined our Group in August 2021 as Chief
Financial Officer of the Company. He is responsible for overseeing our Group’s finance, legal,
investments and capital market activities. He has more than 20 years of financial and
industry-related experience.
Mr. Tey started his career with Ernst &Young, Malaysia in January 1999 to October 2004, and
last held the position of audit manager. He joined PricewaterhouseCoopers ZhongTian LLP
(“PwC China”) in November 2004 as audit manager, and was admitted to partnership in July
2011. From July 2011 to March 2018, Mr. Tey served as an audit partner in PwC China
focusing on the technology industry, while also managing the firm’s relationship with a number
of venture capital firms, and was a member of its private equity leadership team. He was the
Chief Financial Officer of We Doctor Holdings Limited, an online healthcare services company
in China, from April 2018 to April 2019. Mr. Tey was the co-Chief Financial Officer and Senior
Vice President of Hello Inc from May 2019 to August 2021, responsible for its finance and
legal functions.
Mr. Tey received his bachelor’s degree with a double major in accounting and finance from
University of New South Wales, Australia in December 1998. He has been a member of the
Chartered Accountants Australia & New Zealand and member of Malaysian Institute of
Accountants since June 2002 and July 2002, respectively. Mr. Tey became a Certified Public
Accountant in Hong Kong in January 2012 and he was admitted as a Fellow of Chartered
Accountants Australia & New Zealand in November 2017.
INTERESTS OF OUR DIRECTORS AND SENIOR MANAGEMENT
Save as disclosed above, none of our Directors holds any other directorships in public
companies, the securities of which are listed on any securities market in Hong Kong or
overseas during the three years immediately preceding the date of this document. See
“Statutory and General Information” in Appendix V to this document for further information
about the Directors, including the particulars of their service contracts and remuneration, and
details of the interests of the Directors in the Shares (within the meaning of Part XV of the
SFO).
None of our Directors and members of senior management are related to other Directors or
members of senior management. There is no material matter relating to our directors that needs
to be brought to the attention of our shareholders and the information of our directors disclosed
in this document comply with the requirements under Rule 13.51(2) of the Listing Rules in all
material aspects.
– 241 –
COMPANY SECRETARY
Ms. Yin Shan Hui (許燕珊女士) is a senior manager of corporate services of Tricor Services
Limited, a global professional services provider specializing in integrated business corporate
and investor services. She has over 18 years of experience in the corporate secretarial field. Ms.
Hui is currently the company secretary of OneForce Holdings (HKEX: 1933), Shanghai
MicroPort MedBot (Group) Co., Ltd. (HKEX: 2252) and MicroPort NeuroTech Limited
(HKEX: 2172) and the joint company secretary of Honliv Healthcare Management Group
Company Limited (HKEX: 9906).
Ms. Hui graduated from Hong Kong Polytechnic University in Hong Kong with a bachelor’s
degree in applied mathematics in November 1994. She received her master’s degree in finance
from Curtin University of Technology in Australia in December 2002. Ms. Hui obtained a
bachelor’s degree in law from University of London in the United Kingdom in August 2017.
Ms. Hui is an associate member of the Hong Kong Chartered Governance Institute as well as
the Chartered Governance Institute in the United Kingdom.
MANAGEMENT AND CORPORATE GOVERNANCE
Board Committees
The Company has established the audit committee, the remuneration committee, the
nomination committee and corporate governance committee in compliance with the Listing
Rules. These committees operate in accordance with their respective terms of reference
established by our Board.
Audit Committee
We have established the audit committee in compliance with Rule 3.21 of the Listing Rules
(with effect from the [REDACTED]) and with written terms of reference in compliance with
the Corporate Governance Code as set out in Appendix 14 of the Listing Rules.
The primary duties of the audit committee are to review and supervise our financial reporting
progress and the internal control system of our Group, review and approve connected
transactions, manage risk, perform internal audit, provide advice and comments to our Board
and perform other duties and responsibilities as may be assigned by our Board. The audit
committee consists of three members, namely Mr. Charles Zhaoxuan Yang, Ms. Alice Yu-fen
Cheng and Mr. Erh Fei Liu. The chairman of the audit committee is Mr. Charles Zhaoxuan
Yang, who is an independent non-executive Director with the appropriate accounting and
related financial management expertise as required under Rules 3.10(2) and 3.21 of the Listing
Rules.
Remuneration Committee
We have established the remuneration committee in compliance with Rule 3.25 of the Listing
Rules (with effect from the [REDACTED]) and with written terms of reference in compliance
with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules. The
primary duties of the remuneration committee are to establish, review and provide advice to
our Board on the structure of remuneration of our Directors and senior management and on the
establishment of a formal and transparent procedure for developing policies concerning
remuneration, make recommendation to the board the terms of the specific remuneration
package for each executive Director and senior management and review and recommend
performance-based remuneration by reference to corporate goals and objectives resolved by
our Directors from time to time. The remuneration committee comprises three members,
namely Mr. Peng Shen, Mr. Jet Jie Li and Mr. Erh Fei Liu. The chairman of the remuneration
committee is Mr. Erh Fei Liu.
– 242 –
Nomination Committee
We have established the nomination committee with written terms of reference in compliance
with the Corporate Governance Code as set out in Appendix 14 to the Listing Rules and
Chapter 8A of the Listing Rules. The primary duties of the nomination committee are to review
the structure, size and composition of our Board on a regular basis and make recommendations
to our Board regarding any proposed changes to the composition of our Board; identify, select
and make recommendations to our Board on the selection of individuals nominated for
directorship, and ensure the diversity of our Board members; assess the independence of our
independent non-executive Directors and make recommendations to our Board on relevant
matters relating to the appointment, reappointment and removal of our Directors and
succession planning for our Directors. The nomination committee comprises three members,
namely Mr. Erh Fei Liu, Mr. Jet Jie Li and Mr. Peng Shen. The chairman of the nomination
committee is Mr. Erh Fei Liu.
Corporate Governance Committee
We have established a corporate governance committee in compliance with Chapter 8A of the

Listing Rules. The primary duties of the corporate governance committee are to ensure that the
Company is operated and managed for the benefit of all shareholders and to ensure the
Company’s compliance with the Listing Rules and safeguards relating to the weighted voting
rights structures of the Company.
The corporate governance committee comprises three independent non-executive Directors,

namely Mr. Erh Fei Liu, Mr. Peng Shen and Mr. Charles Zhaoxuan Yang. Mr. Peng Shen is the
chairman of the corporate governance committee. For details of their experience in corporate
governance related matters, see the biographies of our independent non-executive Directors in
“– Directors and Senior Management – Independent Non-Executive Directors” in this section.
In accordance with Rule 8A.30 of the Listing Rules and the Corporate Governance Code set
out in Appendix 14 of the Listing Rules, the work of our corporate governance committee as
set out in its terms of reference includes:
(a) to develop and review the Company’s policies and practices on corporate governance and
make recommendations to the Board;
(b) to review and monitor the training and continuous professional development of Directors
and senior management;
(c) to review and monitor the Company’s policies and practices on compliance with legal and
regulatory requirements;
(d) to develop, review and monitor the code of conduct and compliance manual (if any)
applicable to employees and directors;
(e) to review the Company’s compliance with the Corporate Governance Code and disclosure
in the Corporate Governance Report;
(f) to review and monitor whether the Company is operated and managed for the benefit of
all of its shareholders;
– 243 –
(g) to confirm, on an annual basis, that the WVR Beneficiary has been members of the
Company’s board of Directors throughout the year and that no matters under Rule 8A.17
of the Listing Rules have occurred during the relevant financial year;
(h) to confirm, on an annual basis, whether or not the WVR Beneficiary has complied with
Rules 8A.14, 8A.15, 8A.18 and 8A.24 of the Listing Rules throughout the year;
(i) to review and monitor the management of conflicts of interests and make a
recommendation to the board of Directors on any matter where there is a potential conflict
of interest between the Company, its subsidiary or consolidated affiliated entity and/or
shareholder on one hand and the WVR Beneficiary on the other;
(j) to review and monitor all risks related to the Company’s WVR structure, including
connected transactions between the Company and/or its subsidiary or consolidated
affiliated entity on one hand and the WVR Beneficiary on the other and make a
recommendation to the board of Directors on any such transaction;
(k) to make a recommendation to the board of Directors as to the appointment or removal of

the Compliance Adviser;
(l) to seek to ensure effective and on-going communication between the Company and its
shareholders, particularly with regards to the requirements of Rule 8A.35 of the Listing
Rules;
(m) to report on the work of the corporate governance committee on at least a half- yearly and
annual basis covering all areas of its terms of reference, including disclosing, on a comply
or explain basis, its recommendations to the Board in respect of the matters in items (i)
to (k) above.
Pursuant to Rule 8A.32 of the Listing Rules, the Corporate Governance Report prepared by our
Company for inclusion in our interim and annual reports after [REDACTED] will include a
summary of the work of the corporate governance committee for the relevant period.
DISCLOSURE UNDER RULE 8.10 OF THE LISTING RULES
Save as disclosed above, each of our executive and non-executive Directors confirms that as
of the Latest Practicable Date, he/she did not have any interest in a business which competes
or is likely to compete, directly or indirectly, with our business, and requires disclosure under
Rule 8.10 of the Listing Rules.
Role of our Independent Non-executive Directors
Pursuant to Rule 8A.26 of the Listing Rules, the role of the independent non-executive
directors of a listed company with WVR structure must include, but is not limited to, the
functions described in code provisions C.1.2, C.1.6 and C.1.7 of the Corporate Governance
Code. The functions of our independent non-executive Directors include:
(a) participating in board meetings to bring an independent judgment to bear on issues of

strategy, policy, performance, accountability, resources, key appointments and standards
of conduct;
(b) taking the lead where potential conflicts of interests arise;
– 244 –
(c) serving on the audit, remuneration, nomination and corporate governance committees, if
invited;
(d) scrutinizing our Company’s performance in achieving agreed corporate goals and
objectives, and monitoring performance reporting;
(e) giving the Board and any committees on which they serve the benefit of their skills,
expertise and varied backgrounds and qualifications through regular attendance and
active participation;
(f) making a positive contribution to the development of the Company’s strategy and policies
through independent, constructive and informed comments; and
(g) attending general meetings and developing a balanced understanding of the views of our
Shareholders.
Corporate Governance Code
We aim to achieve high standards of corporate governance which are crucial to our
development and safeguard the interests of our Shareholders. In order to accomplish this, we
expect to comply with the Corporate Governance Code set out in Appendix 14 of the Listing
Rules after the [REDACTED] save for the below.
Code provision C.2.1 of Part 2 of the Corporate Governance Code as set out in Appendix 14
to the Listing Rules recommends, but does not require, that the roles of chairman and chief
executive should be separate and should not be performed by the same person. The Company
deviates from this provision because Mr. Li performs both the roles of the Chairman of the
Board and the Chief Executive Officer of the Company. Mr. Li is the founder of the Group and
has extensive experience in the business operations and management of our Group. Our Board
believes that vesting the roles of both chairman and chief executive officer to Mr. Li has the
benefit of ensuring consistent leadership within our Group and enables more effective and
efficient overall strategic planning. This structure will enable our Company to make and
implement decisions promptly and effectively. Our Board considers that the balance of power
and authority will not be impaired due to this arrangement. In addition, all major decisions are
made in consultation with members of the Board, including the relevant Board committees, and
three independent non-executive Directors. Our Board will reassess the division of the roles of
chairman and the chief executive officer from time-to-time, and may recommend dividing the
two roles between different people in the future, taking into account the circumstances of our
Group as a whole.
BOARD DIVERSITY POLICY
Our Company [has adopted] a board diversity policy which sets out the approach to achieve
diversity of the Board. Our Company recognizes and embraces the benefits of having a diverse
Board and sees increasing diversity at the Board level, including gender diversity, as an
essential element in maintaining the Company’s competitive advantage and enhancing its
ability to attract, retain and motivate employees from the widest possible pool of available
talent. Pursuant to the board diversity policy, in reviewing and assessing suitable candidates to
serve as a director of the Company, the nomination committee will consider a number of
factors, including but not limited to gender, age, cultural and educational background,
professional qualifications, skills, knowledge and industry experience. Pursuant to the board
diversity policy, the nomination committee will discuss periodically and when necessary, agree
on the measurable objectives for achieving diversity, including gender diversity, on the Board
and recommend them to the Board for formal adoption.
– 245 –
MANAGEMENT PRESENCE
Pursuant to Rule 8.12 of the Listing Rules, an issuer must have a sufficient management
presence in Hong Kong. This will normally mean that at least two of its executive directors
must be ordinarily resident in Hong Kong. We do not have sufficient management presence in
Hong Kong for the purposes of Rule 8.12 of the Listing Rules.
Accordingly, [we have applied for, and the Stock Exchange has granted], a waiver from strict
compliance with Rule 8.12 of the Listing Rules. See “Waivers” for further details.
DIRECTORS’ REMUNERATION
For details of the service contracts and appointment letters that we have entered into with our
Directors, see “Statutory and General Information – 3. Further Information about Our Directors
and Substantial Shareholders – 3.3 Directors’ service contracts and appointment letter” in
Appendix V to this document.
The remuneration of our Directors are paid in the form of salaries, allowances, benefits in kind,
pension scheme contributions and share-based compensation. The aggregate amount of
remuneration (including wages, salaries, bonuses, pension costs, other employee benefits, but
excluding share-based compensation expenses) for our Directors for the years ended December
31, 2020, 2021 and 2022 were approximately US$1.83 million, US$12.85 million and US$5.03
million, respectively. Further information on the remuneration of each Director during the
Track Record Period is set out in the Accountant’s Report in Appendix I to this document.
The five highest paid individuals of our Group include one Director for each of the years within
the Track Record Period, whose remuneration is included in the aggregate amount of salaries,
allowances, benefits in kind, pension scheme contributions and share-based compensation we
paid to the relevant Directors as set above.
For the years ended December 31, 2020, 2021 and 2022, the aggregate amount of remuneration
(including wages, salaries, bonuses, pension costs, other employee benefits, but excluding
share-based compensation expenses) for the remaining four highest paid individuals who are
neither a Director nor chief executive of the Group were US$11.85 million, US$14.19 million
and US$8.03 million, respectively.
Save as disclosed above, no other payments have been paid or are payable in respect of the
Track Record Period to our Directors by our Group.
It is estimated that remuneration and benefits-in-kind (excluding share-based compensation,

which may be paid to any Directors) equivalent to approximately US$[4.39] million in
aggregate will be paid to our Directors by us in respect of the year ending December 31, 2023
under arrangements in force.
During the Track Record Period, no remuneration was paid to any Director or any of the five
highest paid individuals of our Group as an inducement to join or upon joining our Group. No
compensation was paid to or receivable by any Director or any of the five highest paid
individuals during the Track Record Period for the loss of any office in connection with the
management of the affairs of any member of our Group. None of our Directors waived any
emoluments during the Track Record Period.
– 246 –
COMPLIANCE ADVISER
We have appointed Somerley Capital Limited as the compliance adviser (the “Compliance
Adviser”) pursuant to Rule 8A.33 of the Listing Rules. The Compliance Adviser will provide
us with guidance and advice as to compliance with the requirements under the Listing Rules
and applicable Hong Kong laws. Pursuant to Rules 3A.23 and 8A.34 of the Listing Rules, the
Compliance Adviser will advise our Company, among others, in the following circumstances:
(a) before the publication of any regulatory announcement, circular, or financial report;
(b) where a transaction, which might be a notifiable or connected transaction, is

contemplated, including share issues and share repurchases;
(c) where we propose to use the [REDACTED] of the [REDACTED] in a manner different
from that detailed in this document or where the business activities, development or
results of our Company deviate from any forecast, estimate or other information in this
document;
(d) where the Stock Exchange makes an inquiry to the Company regarding unusual
movements in the price or trading volume of its listed securities or any other matters in
accordance with Rule 13.10 of the Listing Rules;
(e) the WVR structure;
(f) transactions in which the beneficiary of weighted voting rights in the Company has an
interest; and
(g) where there is a potential conflict of interest between the Company, its subsidiary and/or
Shareholders (considered as a group) on one hand and the beneficiary of weighted voting
rights in the Company on the other.
The term of appointment of the Compliance Adviser shall commence on the [REDACTED].
Pursuant to Rule 8A.33 of the Listing Rules, the Company is required to engage a compliance
adviser on a permanent basis.
– 247 –
RELATIONSHIP WITH THE CONTROLLING SHAREHOLDERS
CONTROLLING SHAREHOLDERS
Immediately after the completion of the [REDACTED], Mr. Li, our co-founder, executive
Director, chairman of the Board and Chief Executive Officer, will be interested in and will
control the 979,333,410 Class A Shares held by Jumping Summit Limited, through Topping
Summit Limited, Mr. Li’s wholly-owned entity, which holds 5% equity interest in Jumping
Summit Limited, the remaining 95% equity interest in Jumping Summit Limited is held by
Exceeding Summit Holding Limited, the entire equity interest of which is held by Vistra Trust
(Singapore) Pte. Limited as trustee for the family trust established by Mr. Li for himself and
his family. Each Class A Share shall entitle its holder to ten votes and each Class B Share shall
entitle its holder to one vote on each resolution subject to a vote at general meetings on a poll
(except for resolution on the Reserved Matters, each Class A Share and each Class B Share
shall entitle its holder to one vote on a poll at a general meeting).
Assuming (a) the [REDACTED] is not exercised; and (b) the Reclassification, Redesignation
and Share Subdivision are completed:
(1) Mr. Li’s aggregated shareholding will be approximately [REDACTED] of our total
issued share capital and he will hold approximately [REDACTED] of the total voting
rights in the Company through shares beneficially owned by him capable of being
exercised on resolutions at general meetings (except for resolutions with respect to the
Reserved Matters, in relation to which each Class A Share and each Class B Share shall
entitle its holder to one vote on a poll at a general meeting).
(2) In relation to the Reserved Matters, each Class A Share beneficially owned by Mr. Li and
each Class B Share shall entitle its holder to one vote on a poll at a general meeting, and
the total voting rights in the Company that Mr. Li may exercise in respect of the Reserved
Matters is approximately [REDACTED].
Therefore, Mr. Li, Jumping Summit Limited, Topping Summit Limited and Exceeding Summit
Holding Limited together will constitute Controlling Shareholders of our Company after the
[REDACTED].
For further information about the weighted voting rights attached to the Class A Shares, see
“Share Capital.”
Our Group operates independently of our Controlling Shareholders. Our Controlling

Shareholders may, from time to time, make minority investments or hold non-executive board
positions in entities that operate in, or have subsidiaries that operate in, the broader industries
in which our business segments also operate. As our Controlling Shareholders and/or directors
have no executive or shareholding control over any of these entities, and these entities have
separate businesses with separate management and shareholder bases that control their entities,
our Controlling Shareholders will not inject any of their interested entities into our Group; and
to the extent our directors hold non-executive board positions or make minority investments in
these entities, we believe that this strengthens the experience and diversity of our directors, as
a group, and signifies their passion for the industries in which we operate.
DISCLOSURE UNDER RULE 8.10 OF THE HONG KONG LISTING RULES
Our Controlling Shareholders confirm that, as of the Latest Practicable Date, they did not have
any interest in a business, apart from the business of our Group, which competes or is likely
to compete, directly or indirectly, with our business that would require disclosure under Rule
8.10 of the Listing Rules.
– 248 –
INDEPENDENCE FROM CONTROLLING SHAREHOLDERS
Having considered the following factors, our Directors are satisfied that we are capable of
carrying on our business independently from our Controlling Shareholders and their close
associates after the [REDACTED].
Management Independence
Our business is managed and conducted by our Board and senior management. Upon
[REDACTED], our Board will consist of seven Directors comprising one executive Director,
three non-executive Directors and three independent non-executive Directors. For more
information, see “Directors and Senior Management”.
Our Directors consider that our Board and senior management will function independently of
our Controlling Shareholders because:
(a) each Director is aware of his fiduciary duties as a Director which require, among other
things, that he acts for the benefit and in the interest of our Company and does not allow
any conflict between his duties as a Director and his personal interests;
(b) our daily management and operations are carried out by a senior management team, all
of whom have substantial experience in the industry in which our Company is engaged,
and will therefore be able to make business decisions that are in the best interests of our
Group;
(c) we have three independent non-executive Directors and certain matters of our Company
must always be referred to the independent non-executive Directors for review;
(d) in the event that there is a potential conflict of interest arising out of any transaction to
be entered into between our Group and our Directors or their respective associates, the
interested Director(s) is required to declare the nature of such interest before voting at the
relevant Board meetings of our Company in respect of such transactions; and
(e) we have adopted a series of corporate governance measures to manage conflicts of

interest, if any, between our Group and our Controlling Shareholders which would
support our independent management. See “– Corporate Governance Measures” in this
section for further information.
Based on the above, our Directors believe that our Board as a whole and together with our
senior management team are able to perform the managerial role independently from our
Controlling Shareholders.
Operational Independence
We have full rights to make business decisions and to carry out our business independently
from our Controlling Shareholders and their respective associates. On the basis of the
following reasons, our Directors consider that our Company will continue to be operationally
independent from our Controlling Shareholders and their respective associates after the
[REDACTED]:
(a) we are not reliant on trademarks owned by our Controlling Shareholders, or by other
companies controlled by our Controlling Shareholders;
– 249 –
(b) we are the holder of all relevant licenses material to the operation of our business;
(c) we have independent access to our users, customers and suppliers;
(d) we have sufficient capital, facilities, equipment and employees to operate our business
independently from our Controlling Shareholders;
(e) we have our own administrative and corporate governance infrastructure, including our
own accounting, legal and human resources departments; and
(f) none of our Controlling Shareholders or their respective associates have any interests in
any business which competes or is likely to compete with the business of our Group.
Based on the above, our Directors believe that we are able to operate independently of our
Controlling Shareholders.
Financial Independence
We have independent internal control and accounting systems. We also have an independent
finance department responsible for discharging the treasury function. We are capable of
obtaining financing from third parties, if necessary, without reliance on our Controlling
Shareholders.
No loans or guarantees provided by, or granted to, our Controlling Shareholders or their
respective associates will be outstanding as of the [REDACTED].
Based on the above, our Directors are of the view that they and our senior management are
capable of carrying on our business independently of, and do not place undue reliance on, our
Controlling Shareholders and their respective close associates after the [REDACTED].
CORPORATE GOVERNANCE MEASURES
Our Company and Directors are committed to upholding and implementing the highest
standards of corporate governance and recognize the importance of protecting the rights and
interests of all Shareholders, including the rights and interests of our minority Shareholders. In
light of this, our Company has established a corporate governance committee pursuant to Rule
8A.30 which has adopted terms of reference consistent with Code Provision A.2.1 in Part 2 of
Appendix 14 to, and Rule 8A.30 of, the Listing Rules. The members of the corporate
governance committee are independent non-executive Directors with extensive experience in
overseeing corporate governance related functions of private and Hong Kong listed companies.
The primary duties of the corporate governance committee are to ensure that the Company is
operated and managed for the benefit of all Shareholders and to ensure the Company’s
compliance with the Listing Rules and safeguards relating to the weighted voting rights
structure of the Company.
Under the Articles of Association, extraordinary general meetings of the Company may be
convened on the written requisition of any one or more members holding, as of the date of
deposit of the requisition, in aggregate not less than one-tenth of the voting rights (on a one
vote per share basis) in the share capital of the Company. In addition, pursuant to the
Shareholder communication policy to be adopted by the Company upon [REDACTED],
Shareholders are encouraged to put governance related matters to the Directors and to the
Company directly in writing.
– 250 –
We have adopted the following measures to ensure good corporate governance standards and
to avoid potential conflicts of interest between our Group and our Controlling Shareholders:
(a) under the Articles, where a Shareholders’ meeting is to be held for considering proposed
transactions in which our Controlling Shareholders or any of their associates has a
material interest, the Controlling Shareholders or associates will not vote on the relevant
resolutions;
(b) our Company has established internal control mechanisms to identify connected
transactions. Upon the [REDACTED], if our Company enters into connected transactions
with our Controlling Shareholders or any of its associates, our Company will comply with
the applicable Listing Rules;
(c) the independent non-executive Directors will review, on an annual basis, whether there
are any conflicts of interests between the Group and our Controlling Shareholders and
provide impartial and professional advice to protect the interests of our minority
Shareholders;
(d) our Controlling Shareholders will undertake to provide all information necessary,
including all relevant financial, operational and market information and any other
necessary information as required by the independent non-executive Directors for the
purpose of their annual review;
(e) our Company will disclose decisions on matters reviewed by the independent non-
executive Directors either in its annual reports or by way of announcements as required
by the Listing Rules;
(f) where our Directors reasonably request the advice of independent professionals, such as
financial advisers, the appointment of such independent professionals will be made at our
Company’s expense;
(g) we have appointed Somerley Capital Limited as our compliance adviser to provide advice
and guidance to us in respect of compliance with the applicable laws and regulations, as
well as the Listing Rules, including various requirements relating to corporate
governance; and
(h) we have established our audit committee, remuneration committee, nomination committee
and corporate governance committee with written terms of reference in compliance with
the Listing Rules and the Code on Corporate Governance and Corporate Governance
Report in Appendix 14 to the Listing Rules.
Based on the above, our Directors are satisfied that sufficient corporate governance measures
have been put in place to manage conflicts of interest that may arise between our Group and
our Controlling Shareholders, and to protect our minority Shareholders’ interests after the
[REDACTED].
– 251 –
SHARE CAPITAL
AUTHORIZED AND ISSUED SHARE CAPITAL
The following is a description of our authorized share capital and the amount in issue and to
be issued as fully paid or credited as fully paid immediately prior to and following completion
of the [REDACTED].
1. Share capital at the date of this document
(i) Authorized share capital
Approximate
aggregate
nominal value
Number Description of Shares of shares
3,719,302,324 Class A Ordinary Shares of US$0.00001 par US$37,193.02

value each
195,866,682 Class B Ordinary Shares of US$0.00001 par US$1,958.67
value each
1,084,830,994 Pre-[REDACTED] Preferred Shares of US$10,848.31
US$0.00001 par value each
Total US$50,000.00
(ii) Issued, fully paid or credited to be fully paid
Approximate
aggregate
nominal value
463,150,842 Class A Ordinary Shares of US$0.00001 par US$4,631.50

value each
195,866,682 Class B Ordinary Shares of US$0.00001 par US$1,958.67
value each
1,038,105,643 Pre-[REDACTED] Preferred Shares of US$10,381.06
US$0.00001 par value each
Total US$16,971.23
2. Share capital immediately following the completion of the [REDACTED]
Pursuant to the resolutions of the Shareholders on [●], 2023, subject to the [REDACTED]
becoming unconditional and with effect immediately prior to the [REDACTED]: the
Reclassification, Redesignation and Share Subdivision will be effected.
The tables below assumes (i) the Reclassification, Redesignation and Share Subdivision are
completed, (ii) the [REDACTED] becomes unconditional and the [REDACTED] are issued
pursuant to the [REDACTED], (iii) the [REDACTED] is not exercised, and (iv) no Class A
Shares are converted into Class B Shares.
– 252 –
SHARE CAPITAL
(i) Authorized share capital
Approximate
aggregate
nominal value
979,333,410 Class A Shares US$1,958.67

24,020,666,590 Class B Shares US$48,041.33
Total US$50,000.00
(ii) Issued and to be issued, fully paid or credited to be fully paid
Approximate
aggregate
nominal value
979,333,410 Class A Shares in issue US$1,958.67

7,506,282,425 Class B Shares in issue US$15,012.56
[REDACTED] Class B Shares to be issued pursuant US$[REDACTED]
to the [REDACTED]
Total US$[REDACTED]
The tables above do not take into account any Class B Shares that may be issued or repurchased
by the Company under the general mandates granted to our Directors referred to below.
WEIGHTED VOTING RIGHTS STRUCTURE
The Company is proposing to adopt a WVR Structure effective immediately upon the
completion of the [REDACTED]. Under this structure, the Company’s share capital will
comprise Class A Shares and Class B Shares. Each Class A Share shall entitle its holder to ten
votes, and each Class B Share shall entitle its holder to one vote, on each resolution subject
to a vote at the Company’s general meetings on a poll, except for resolutions with respect to
the Reserved Matters, in relation to which each Class A Share and each Class B Share shall
entitle its holder to one vote on a poll at a general meeting.
The Reserved Matters are:
(i) any amendment to the Memorandum or Articles, including the variation of the rights
attached to any class of shares;
(ii) the appointment, election or removal of any independent non-executive Director;
(iii) the appointment or removal of the Company’s auditors; or
(iv) the voluntary liquidation or winding-up of the Company.
In addition, one or more Shareholders, including holders of Class B Shares, holding, as of the
date of deposit of the requisition, in aggregate not less than one-tenth of the voting rights
(on a one vote per share basis) in the share capital of the Company are entitled to make a
requisition to convene an extraordinary general meeting of the Company and/or add resolutions
to the meeting agenda.
– 253 –
SHARE CAPITAL
See “Summary of the Constitution of Our Company and the Company Laws of the Cayman
Islands – 2. Articles of Association” in Appendix IV to this document for further details.
The table below sets out the ownership and voting rights to be held by the WVR Beneficiary
upon the completion of the [REDACTED]:
Approximate Approximate
percentage of percentage
Number issued share of voting
of Shares capital (1) rights (1)(2)
Class A Shares held by the WVR

Beneficiary 979,333,410 [REDACTED]% [REDACTED]%
Class B Shares held by the WVR
Beneficiary Nil Nil Nil
Total 979,333,410 [REDACTED]% [REDACTED]%
Notes:
(1) Assuming (i) that the Reclassification, Redesignation and Share Subdivision are completed, and (ii) the
[REDACTED] is not exercised.
(2) On the basis that each Class A Share shall entitle its holder to ten votes and each Class B Share shall entitle
its holder to one vote on each resolution subject to a vote at general meetings on a poll, except for resolutions
with respect to the Reserved Matters for which each Class A Share and each Class B Share shall entitle its
holder to one vote on a poll at a general meeting.
Class A Shares may be converted into Class B Shares on a one to one ratio. Upon the
completion of the Reclassification, Redesignation and Share Subdivision, the Company will
issue 979,333,410 Class A Shares, representing approximately [REDACTED]% of the total
number of issued and outstanding Shares (assuming the [REDACTED] is not exercised.)
The weighted voting rights attached to our Class A Shares will cease when the WVR
Beneficiary ceases to have beneficial ownership of any of our Class A Shares, in accordance
with Listing Rule 8A.22. This may occur:
(i) upon the occurrence of any of the circumstances set out in Listing Rule 8A.17, in
particular where the WVR Beneficiary is: (1) deceased; (2) no longer a member of our
Board; (3) deemed by the Stock Exchange to be incapacitated for the purpose of
performing his duties as a director; or (4) deemed by the Stock Exchange to no longer
meet the requirements of a director set out in the Listing Rules;
(ii) when the holders of Class A Shares have transferred to another person the beneficial
ownership of, or economic interest in, all of the Class A Shares or the voting rights
attached to them, other than in the circumstances permitted by Listing Rule 8A.18;
(iii) where a vehicle holding Class A Shares on behalf of a WVR Beneficiary no longer
complies with Listing Rule 8A.18(2); or
(iv) when all of the Class A Shares have been converted to Class B Shares.
– 254 –
SHARE CAPITAL
WVR Beneficiary
Assuming (i) the [REDACTED] is not exercised, and (ii) Reclassification, Redesignation and
Share Subdivision are completed:
• Mr. Li will beneficially own 979,333,410 Class A Shares, representing approximately

[REDACTED]% of the total voting rights in the Company with respect to shareholder
resolutions relating to matters other than the Reserved Matters. The Class A Shares
beneficially owned by Mr. Jet Jie Li are held by Jumping Summit Limited, a company
jointly owned by Topping Summit Limited and Exceeding Summit Holding Limited. For
more information, see “Relationship with the Controlling Shareholders”.
The Company is adopting the WVR Structure to enable the WVR Beneficiary to exercise
voting control over the Company. This will enable the Company to benefit from the continuing
vision and leadership of the WVR Beneficiary who will control the Company with a view to
its long-term prospects and strategy.
Prospective investors are advised to be aware of the potential risks of investing in companies
with weighed voting rights structures, in particular that interests of the WVR Beneficiary may
not necessarily always be aligned with those of our Shareholders as a whole, and that the WVR
Beneficiary will be in a position to exert significant influence over the affairs of our Company
and the outcome of shareholders’ resolutions, irrespective of how other shareholders vote.
Prospective investors should make the decision to invest in the Company only after due and
careful consideration. For further information about the risks associated with the WVR
structure adopted by the Company, see “Risk Factors – Risks Related to the WVR Structure.”
Save for the voting rights and conversion rights attached to Class A Shares, the Class A Shares
and the Class B Shares shall rank pari passu in all other respects and shall have the same rights,
preferences, privileges and restrictions. For further information about the rights, preferences,
privileges and restrictions of the Class A Shares and Class B Shares, see “Summary of the
Constitution of Our Company and the Company Laws of the Cayman Islands – 2. Articles of
Association” in Appendix IV to this document for further details.
Undertakings by the WVR Beneficiary
Pursuant to Rule 8A.43 of the Listing Rules, the WVR Beneficiary is required to give a legally
enforceable undertaking to the Company that he will comply with the relevant requirements as
set out in Rule 8A.43, which is intended to be for the benefit of and enforceable by the
Shareholders. On [●], Mr. Li made an undertaking to the Company (the “Undertaking”), that
for so long as he is a WVR Beneficiary:
1. he shall comply with (and, if the shares to which the weighted voting rights that he is
beneficially interested in are attached are held through a limited partnership, trust, private
company or other vehicle, use his best endeavors to procure that such limited partnership,
trust, private company or other vehicle complies with) all applicable requirements under
Rules 8A.09, 8A.14, 8A.15, 8A.17, 8A.18 and 8A.24 of the Listing Rules from time to
time in force (the “Requirements”); and
2. he shall use his best endeavors to procure that the Company complies with all applicable
Requirements.
– 255 –
SHARE CAPITAL
For the avoidance of doubt, the Requirements are subject to Rule 2.04 of the Listing Rules. The
WVR Beneficiary acknowledged and agreed that the Shareholders rely on the Undertaking in
acquiring and holding their shares. The WVR Beneficiary acknowledged and agreed that the
Undertaking is intended to confer a benefit on the Company and all Shareholders and may be
enforced by the Company and/or any Shareholder against the WVR Beneficiary.
The Undertaking shall automatically terminate upon the earlier of (i) the date of
[REDACTED] of the Company from the Stock Exchange; and (ii) the date on which the WVR
Beneficiary ceases to be a beneficiary of weighted voting rights in the Company. For the
avoidance of doubt, the termination of the Undertaking shall not affect any rights, remedies,
obligations or liabilities of the Company and/or any Shareholder and/or the WVR Beneficiary
himself that have accrued up to the date of termination, including the right to claim damages
and/or apply for any injunction in respect of any breach of the Undertaking which existed at
or before the date of termination.
The Undertaking shall be governed by the laws of Hong Kong and all matters, claims or
disputes arising out of the Undertaking shall be subject to the exclusive jurisdiction of the
courts of Hong Kong.
RANKING
The [REDACTED] will rank pari passu in all respects with all Class B Shares currently in
issue or to be issued as mentioned in this document, and will qualify and rank equally for all
dividends or other distributions declared, made or paid on the Shares on a record date which
falls after the date of this document.
ALTERATIONS OF CAPITAL
Pursuant to the Cayman Companies Act and the terms of the Memorandum of Association and
Article of Association, our Company may from time to time by ordinary resolution of
Shareholders (i) increase its share capital; (ii) consolidate or divide all or any of its capital into
shares of a larger amount; (iii) divide its shares into several classes; (iv) subdivide its shares
into shares of a smaller amount; and (v) cancel any shares which have not been taken. In
addition, our Company may, subject to the provisions of the Cayman Companies Act, reduce
its share capital or undistributable reserve by its shareholders passing a special resolution. See
“Summary of the Constitution of Our Company and the Company Laws of the Cayman Islands
– 2. Articles of Association – 2.1 Shares – (d) Alteration of capital” in Appendix IV to this
document for further details.
SHARE INCENTIVE SCHEME
The Company has adopted the Pre-[REDACTED] Share Incentive Plan. See “Statutory and
General Information – 4. Pre-[REDACTED] Share Incentive Plan” in Appendix V to this
document for further details.
– 256 –
SHARE CAPITAL
GENERAL MANDATE TO ISSUE SHARES
Subject to the [REDACTED] becoming unconditional, our Directors have been granted a
general unconditional mandate, to allot, issue and deal with Class B Shares with a total nominal
value of not more than the sum of:
• 20% the aggregate nominal value of the Shares in issue immediately following
completion of the [REDACTED] (excluding (i) the additional Class B Shares which may
be issued pursuant to the exercise of the [REDACTED]; and (ii) the Class B Shares that
are issuable upon conversion of the Class A Shares into Class B Shares on a one to one
basis); and
• the aggregate nominal value of Shares repurchased by the Company under the authority
referred to in “– General Mandate to Repurchase Shares” in this section.
This general mandate to issue Class B Shares will expire at the earliest of:
• the conclusion of the next annual general meeting of our Company unless otherwise
renewed by an ordinary resolution of our Shareholders in a general meeting, either
unconditionally or subject to conditions; or
• the expiration of the period within which our Company’s next annual general meeting is
required by the Articles of Association or any other applicable laws to be held; or
• the date on which it is varied or revoked by an ordinary resolution of our Shareholders

in general meeting.
See “Statutory and General Information – 1. Further Information about our Group
– 1.5 Resolutions passed in the meeting of our Shareholders dated [●]” in Appendix V to this
document for further details of the general mandate.
GENERAL MANDATE TO REPURCHASE SHARES
Subject the [REDACTED] becoming unconditional, our Directors have been granted a general
unconditional mandate, to exercise all the powers of our Company to repurchase our own
securities with nominal value of up to 10% of the aggregate nominal value of our Shares in
issue immediately following the completion of the [REDACTED] (excluding (i) the additional
Class B Shares which may be issued pursuant to the exercise of the [REDACTED]; and (ii)
the Class B Shares that are issuable upon conversion of the Class A Shares into Class B Shares
on a one to one basis).
The repurchase mandate only relates to repurchases made on the Stock Exchange, or on any
other stock exchange on which our Shares are [REDACTED] (and which are recognized by the
SFC and the Stock Exchange for this purpose), and which are in accordance with the Listing
Rules. A summary of the relevant Listing Rules is set out in “Statutory and General Information
– 1. Further Information about our Group – 1.6 Explanatory statement on repurchase of our
own securities” in Appendix V to this document.
This general mandate to repurchase Shares will expire at the earliest of:
• the conclusion of the next annual general meeting of our Company unless otherwise
renewed by an ordinary resolution of our Shareholders in a general meeting, either
unconditionally or subject to conditions; or
– 257 –
SHARE CAPITAL
• the expiration of the period within which our Company’s next annual general meeting is
required by the Articles of Association or any other applicable laws to be held; or
• the date on which it is varied or revoked by an ordinary resolution of our Shareholders

passed in a general meeting.
See “Statutory and General Information – 1. Further Information about our Group – 1.6
Explanatory statement on repurchase of our own securities” in Appendix V to this document
for further details of the repurchase mandate.
– 258 –
SUBSTANTIAL SHAREHOLDERS
So far as our Directors are aware, immediately following the completion of the [REDACTED],
assuming (i) the [REDACTED] is not exercised, and (ii) completion of the Reclassification,
Redesignation and Share Subdivision, the following persons will have interests and/or short
positions (as applicable) in the Shares or underlying shares of our Company that (i) would fall
to be disclosed to the Company and the Stock Exchange pursuant to the provisions of Divisions
2 and 3 of Part XV of the SFO, or, (ii) will be, directly or indirectly, interested in 10% or more
of the nominal value of any class of our share capital carrying rights to vote in all
circumstances at general meetings of our Company:
Approximate
percentage of
shareholding
of each class
of shares
Name of substantial Capacity/Nature Number and class in our
shareholder of Interest of shares held (1) Company (1)
Class A Shares
Jumping Summit Limited Beneficial interest 979,333,410 [REDACTED]

Class A Shares
Mr. Jet Jie Li (2) Interest in controlled 979,333,410 [REDACTED]

corporation Class A Shares
Class B Shares
Team Spirit Group Limited (3) Beneficial interest 373,175,910 [REDACTED]

Class B Shares
Mr. Chen Mingyong (3) Interest in a 373,175,910 [REDACTED]

controlled Class B Shares
corporation
Interest of spouse 327,712,070 [REDACTED]

Class B Shares
Starlight Hero Limited (3) Beneficial interest 327,712,070 [REDACTED]

Class B Shares
Ms. Liang Xiaojing (3) Interest in a 327,712,070 [REDACTED]

controlled Class B Shares
corporation
Interest of spouse 373,175,910 [REDACTED]

Class B Shares
– 259 –
Approximate
percentage of
shareholding
of each class
of shares
Name of substantial Capacity/Nature Number and class in our
shareholder of Interest of shares held (1) Company (1)
Tencent
Deep Red Holdings Limited (4) Beneficial interest 130,718,955 [REDACTED]

Class B Shares
Rhododendron Investment Beneficial interest 130,713,270 [REDACTED]

Limited (4) Class B Shares
TB RACING RABBITS Beneficial interest 98,039,215 [REDACTED]

INVESTMENT HOLDINGS Class B Shares
L.P. (4)
Eternal Earn Holding Beneficial interest 98,039,215 [REDACTED]

Parallel Cluster Investment Beneficial interest 78,431,370 [REDACTED]

Boyu
Jaunty Global Limited (5) Beneficial interest 341,411,525 [REDACTED]

Class B Shares
Joyous Tempinis Limited (5) Beneficial interest 104,561,995 [REDACTED]

Class B Shares
Jallion Global Limited (5) Beneficial interest 71,895,425 [REDACTED]

Class B Shares
ATM Capital
Fast Creative Zone Limited (6) Beneficial interest 399,966,340 [REDACTED]

Class B Shares
Ultra Height Fund L.P. (6) Beneficial interest 66,116,490 [REDACTED]

Class B Shares
Notes:
(1) The table above assumes that (i) the [REDACTED] is not exercised, and (ii) completion of the
Reclassification, Redesignation and Share Subdivision, and not taking into account any [REDACTED] to be
subscribed for by the existing Shareholders.
(2) Topping Summit Limited, an entity wholly-owned by Mr. Li, owns 5% equity interest of Jumping Summit
Limited; Exceeding Summit Holding Limited, which is held by Vistra Trust (Singapore) Pte. Limited as a
trustee for a trust established by Mr. Li for the benefit of Mr. Li and his family members, owns the remaining
95% equity interest in Jumping Summit Limited. Accordingly, Mr. Li is deemed to be interested in the
979,333,410 Class A Shares held by Jumping Summit Limited under the SFO.
– 260 –
(3) Team Spirit Group Limited is approximately 65.9% owned by the Labor Union Committee of Guangdong
OPlus Holdings Co., Ltd; approximately 33.6% owned by GLORY HILL HOLDINGS LIMITED (高耀集團有
限公司) and approximately 0.5% owned by Jin Leqin, an independent third party. The Labor Union Committee
of Guangdong OPlus Holdings Co., Ltd is deemed to be controlled by Mr. Chen Mingyong. Accordingly, Mr.
Chen Mingyong is deemed to be interested in the 373,175,910 Class B Shares held by Team Spirit Group
Limited under the SFO.
Ms. Liang Xiaojing does not hold any legal or beneficial interest in the share capital of Team Spirit Group
Limited; however, solely pursuant to Part XV of the SFO, Ms. Liang Xiaojing is deemed to be interested in
the 373,175,910 Class B Shares interested by her spouse, Mr. Chen Mingyong, although she does not
personally hold such shares as a direct shareholder.
Starlight Hero Limited is wholly-owned by Ms. Liang Xiaojing.
Mr. Chen Mingyong does not hold any legal or beneficial interest in the share capital of Starlight Hero Limited;
however, solely pursuant to Part XV of the SFO, Mr. Chen Mingyong is deemed to be interested in the
327,712,070 Class B Shares interested by his spouse, Ms. Liang Xiaojing, although he does not personally hold
such shares as a direct shareholder.
(4) Rhododendron Investment Limited, Deep Red Holdings Limited and TB Racing Rabbits Investment Holdings
L.P. are all wholly owned by Tencent Holdings Limited, a company listed on the Main Board of the Stock
Exchange (HKEX; 00700, “Tencent”). Eternal Earn Holding Limited is a wholly-owned subsidiary of TPP
Fund II, L.P., whose general partner is TPP GP II, Ltd, which is ultimately controlled by Tencent. Parallel
Cluster Investment Limited is a wholly-owned subsidiary of Parallel Cluster Investment L.P., whose general
partner is Parallel Cluster GP Limited, which is ultimately controlled by Tencent. Accordingly, Tencent is
deemed to be interested in the 535,942,025 Class B Shares held by Deep Red Holdings Limited, Rhododendron
Investment Limited, TB Racing Rabbits Investment Holdings L.P., Eternal Earn Holding Limited and Parallel
Cluster Investment Limited under the SFO.
(5) Joyous Tempinis Limited, Jaunty Global Limited and Jallion Global Limited are directly or indirectly
controlled by Boyu Capital Fund IV, L.P., an exempted limited partnership registered under the laws of the
Cayman Islands. Boyu Capital Fund IV, L.P. is advised by Boyu Capital Group Management Ltd. (together
with its affiliates, “Boyu”). Accordingly, Boyu is deemed to be interested in the 517,868,945 Class B Shares
held by Jaunty Global Limited, Joyous Tempinis Limited and Jallion Global Limited under the SFO.
(6) Fast Creative Zone Limited is majority held by Global Express Fund L.P. Global Express Fund L.P. and Ultra
Height Fund L.P. are managed by Global Express GP Limited and Global Freight Limited, respectively, both
of which are ATM Capital’s management entities. Accordingly, ATM Capital is deemed to be interested in the
466,082,830 Class B Shares held by Fast Creative Zone Limited and Ultra Height Fund L.P. under the SFO.
Except as disclosed above, our Directors are not aware of any other person who will,
immediately following the completion of the [REDACTED] (assuming (i) the [REDACTED]
is not exercised, and (ii) completion of the Reclassification, Redesignation and Share
Subdivision) have any interest and/or short positions in the Shares or underlying shares of our
Company which would fall to be disclosed to the Company pursuant to the provisions of
Divisions 2 and 3 of Part XV of the SFO, or, who is, directly or indirectly, interested in 10%
or more of the nominal value of any class of our share capital carrying rights to vote in all
circumstances at general meetings of our Company. Our Directors are not aware of any
arrangement which may at a subsequent date result in a change of control of our Company.
– 261 –
FINANCIAL INFORMATION
You should read the following discussion and analysis in conjunction with our audited
combined financial statements included in “Appendix I – Accountant’s Report” to this
document, together with the accompanying notes. Our combined financial statements
have been prepared in accordance with International Financial Reporting Standards
(“IFRSs”), which may differ in material aspects from generally accepted accounting
principles in other jurisdictions. You should read the entire Accountant’s Report and not
merely rely on the information contained in this section.
This discussion and analysis contain forward-looking statements that reflect our current
views with respect to future events and our financial performance and involves risks and
uncertainties. These statements are based on our assumptions and analysis in light of our
experience and perception of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate under the
circumstances. However, whether actual outcomes and developments will meet our
expectations and predictions depends on a number of risks and uncertainties. Our actual
results may differ materially from those anticipated in these forward looking statements
as a result of any number of factors. In evaluating our business, you should carefully
consider the information provided in this document, including “Risk Factors” and
“Business” in this document.
For the purpose of this section, unless the context otherwise requires, references to 2020,
2021 and 2022 refer to our financial years ended December 31 of such years. Unless the
context otherwise requires, financial information described in this section is described on
a consolidated basis.
OVERVIEW
– 262 –
global footprint.
merchants and consumers across the regions and enabling the growth of e-commerce
training.
BASIS OF PRESENTATION
Our historical financial information has been prepared in accordance with IFRS and
interpretations issued by the International Accounting Standards Board (“IASB”). The
historical financial information has been prepared on a historical cost basis, except for certain
financial assets and liabilities measured at fair value through profit or loss.
The preparation of the historical financial information in conformity with IFRS requires the use
of certain critical accounting estimates. It also requires management to exercise its judgment
in the process of applying our accounting policies. The areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimates are significant to the
historical financial information, are disclosed in Note 4 to the Accountant’s Report in Appendix
I to this document. Regarding the change in accounting policy and disclosures, see Note 2 to
the Accountant’s Report in Appendix I to this document.
– 263 –
MAJOR FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Our results of operations are affected by general factors affecting the overall economic growth
and level of per capita disposable income, the growth of e-commerce, governmental policies
and initiatives affecting express and delivery companies in the regions where we operate, and
competition from various competitors globally. Unfavorable changes in any of these general
industry conditions could negatively affect demand for our services and materially and
adversely affect our results of operations. Our results of operations are affected by certain
company-specific factors.
Macroeconomic trends and demand for express delivery and other logistics services in the
regions where we operate
Our results of operations and financial condition are affected by the factors driving the
economies in the jurisdictions where we operate, particularly in Southeast Asia and China, the
e-commerce industry and the express delivery service market. These factors include levels of
per capita disposable income, levels of consumer spending, rate of Internet and smartphone
penetration, adoption of e-commerce and other general economic conditions that affect
consumption and business activities in general in the jurisdictions where we operate.
We anticipate additional growth in the express delivery industry driven by, among other things,
further adoption of e-commerce in Southeast Asia and the New Markets, new retail trends in
China, and the rise of social e-commerce, such as emerging short video and live streaming
social e-commerce platforms. According to Frost & Sullivan, the Southeast Asia express
delivery market grew from 3.3 billion in parcel volume in 2018 to 11.1 billion in 2022,
representing a CAGR of 36.0%, and is expected to reach 23.5 billion in parcel volume by 2027
from 13.2 billion in 2023, representing a CAGR of 15.5%. According to Frost & Sullivan, the
express delivery market in China has been growing at a CAGR of 21.5% over the past five
years (from 2018 to 2022) in terms of parcel volume. The China express delivery market is
expected to reach 188.0 billion parcels in 2027 from 125.1 billion parcels in 2023, representing
a CAGR of 10.7%, according to Frost & Sullivan. In addition, the express delivery market in
the New Markets is also expected to reach 7,137.7 million in parcel volume in 2027 from
3,733.5 million in 2023, at a CAGR of 17.6%, according to Frost & Sullivan.
Our results of operations are also affected by the growth and increasing demand in other
logistics services, such as cross-border services, warehousing and other logistics solutions.
These trends may affect the demand for our services and our business opportunities going
forward.
Competition, further penetration in existing markets and expansion in the New Markets
We have a proven track record of maintaining a competitive edge and driving growth in the
markets where we operate. For instance, according to Frost & Sullivan, we are the number one
express delivery operator in Southeast Asia by parcel volume from 2020 to 2022, delivering
1,153.8 million domestic parcels with a 16.4% market share in 2020 and 2,160.8 million
domestic parcels with a 22.3% market share in 2021, and further extending our leading position
to a 22.5% market share with a parcel volume of 2,513.2 million in 2022. We entered into the
China market in March 2020 and are the fastest among our peers to achieve an industry
milestone of 50 million daily parcel volume. We have become a leading express delivery
operator with a market share of 10.9% in China by total parcel volume in 2022, according to
Frost & Sullivan. We also have recently expanded operations into the New Markets including
Saudi Arabia, UAE, Mexico, Brazil, and Egypt. Our revenue and operating income are affected
by the competitive landscape, market environment and our market position. In each of our
– 264 –
regions of operations, we compete with the leading domestic express delivery companies in
those regions. We also compete with international carriers operating in the jurisdictions where
we operate in connection with our cross-border services.
Our competitive position also depends on our ability to maintain relationships with and expand
the scope of our customers and partners, which depends on our capabilities to differentiate
ourselves through our continuous innovation, operational capabilities, and service quality. For
instance, we serve merchants and consumers on leading e-commerce platforms, such as
Shopee, Lazada, Tokopedia, Pinduoduo, Taobao, Tmall, Shein and Noon, as well as short video
and live streaming platforms, such as TikTok, Douyin and Kuaishou. Our ability to compete for
and maintain a leading market position in our regions of operations, as well as to maintain
cooperation with and expand our customer base will depend on our ability to differentiate
through innovation, operational capabilities and service quality.
Effectiveness of our unique regional sponsor model
We have adopted a unique regional sponsor model which provides us with effective
management over our network, aligned incentives and a shared culture among regional
sponsors while maintaining competitiveness, flexibility and excellent operating leverage. Our
results of operations are affected by our ability to take full advantage of our regional sponsor
model to expand our operations in a cost-effective manner, leverage the resources and
operating capabilities of our regional sponsors, while maintaining effective management over
our network. Our regional sponsor model enables us to expand and capture market share
rapidly, reaching markets that have limited express delivery alternatives rapidly and efficiently,
while minimizing capital expenditures. Through this adaptive business model, we have
improved and will continue to improve our unit cost structure, and we will increase our
operating leverage to maintain market-leading positions in Southeast Asia, compete effectively
with longer-established players in China, and continue to grow in the New Markets.
Costs efficiency
Our results of operations are affected by our ability to control costs, which may be subject to
factors such as fluctuations in wage rates, fuel prices, toll fees, and leasing costs, among other
things. For example, our cost of revenue significantly increased in 2021 and 2022 primarily due
to the launch and ramping-up of our service offerings in China and the New Markets. The
continued growth of our business and expansion of our market shares in countries where we
operate will impact our ability to benefit from economies of scale, including optimization of
our delivery service network, reduction of unit costs and the strengthening of our bargaining
power with suppliers and service providers. Furthermore, as we continue to expand our
business, we apply our best practices in markets where we operate, which affects our ability
to enhance and expand our services at optimized costs and efficiency.
Effective investment in network and technology
We have made investments in developing our express delivery network, proprietary technology
and infrastructure. We believe our ability to provide quality services across multiple
geographic regions, as well as our ability to provide tailored services to meet the needs of
e-commerce partners, have been a key factor for our success. We have rapidly scaled our
network while satisfying the local needs in each of the markets we operate in through organic
growth as well as strategic acquisitions. As of December 31, 2022, we had a portfolio of 104
regional sponsors and approximately 9,600 network partners. We operated 280 sorting centers
and over 8,100 line-haul vehicles with approximately 3,800 line-haul routes, as well as over
21,000 pickup and delivery outlets as of December 31, 2022.
– 265 –
We believe continuous enhancement of our network and technology infrastructure is important

to our future performance. We expect to continue to make investments in the development and
implementation of new technologies. We believe these investments will improve our parcel
handling capacity, IT system efficiency, market penetration and customer experience, which
ultimately affect our results of operations and drive overall long-term growth.
Strategic relationships, partnerships and investment acquisitions
We have, in the past, pursued strategic acquisitions and made strategic investments to grow our
business. For example, in 2021, we completed the acquisitions of the SEA entities, which
allowed us to achieve synergies under our regional sponsor business model through these
acquisitions. In December 2021, we completed the acquisition of BEST Express China, and in
May 2023, we entered into a share transfer agreement to acquire Fengwang Information. See
“History and Corporate Structure – Major Acquisitions, Disposals and Mergers – Acquisition
of Fengwang Information.” Our financial performance was and will continue to be impacted by
our acquisitions and investments. Additionally, our ability to successfully integrate sorting
centers, supply chains and service offerings will affect the synergies we are able to achieve
through relevant acquisitions.
Going forward, we may continue to selectively pursue acquisitions, investments, and other
forms of cooperation that we believe are strategic and complementary to our operations and
technology, all of which may affect our results of operations.
Foreign exchange rate fluctuations
We operate in multiple jurisdictions, which exposes us to the effects of fluctuations in foreign

exchange rates. Our historical financial information is presented in U.S. dollars, the Company’s
presentation currency. For each Group entity, items included in its financial statements are
generally recorded in the currency of the country where such Group entity operates, which may
be, among others, Renminbi, Indonesian Rupiah, Malaysian Ringgit, Vietnamese Dong, Thai
Baht, Philippine Pesos, Singapore dollars, Brazilian Real or Mexican Peso. Our financial
information as expressed in U.S. dollars may be significantly affected by fluctuations in
foreign exchange rates, and the figures may be materially higher or lower than would be the
case if exchange rates were stable.
MAJOR BUSINESS COMBINATIONS
In June 2021, to encourage regional sponsors in Thailand to share our vision of long-term
growth and value propositions, we acquired the majority interest of 13 entities from Thai
regional sponsors (the “Thai entities”). Similarly, in August 2021, we made capital increases
in 25 entities established by Indonesian regional sponsors (the “Indonesian entities” and,
together with the Thai entities, the “SEA entities”) and acquired 70% of their equity interests
in these Indonesian entities.
On December 8, 2021, we completed our acquisition of the 100% equity interest in BEST
Express China, at an enterprise value of approximately RMB6.8 billion with a cash
consideration of US$715.5 million paid by our Group in 2021. We used cash on hand to finance
the transaction.
– 266 –
The above acquisitions were accounted for as a business combination using the acquisition
method of accounting in accordance with IFRS. For more information regarding our
acquisitions of the SEA entities and the acquisition of BEST Express China, see Notes 36 to
38 to the Accountant’s Report in Appendix I to this document, and “History and Corporate
Structure – Major Acquisitions, Disposals and Mergers – Acquisition of BEST Express China.”
IMPACT OF COVID-19 PANDEMIC ON OPERATIONS
Our results of operations and financial condition have been affected by the COVID-19
pandemic during the Track Record Period. Countries where we have our operations were
subject to the impact of the COVID-19 pandemic and various governmental measures from
time to time. Our offices, sorting centers and outlets closed and opened in accordance with
applicable measures. The timelines for business resumption varied across different localities
and countries. On a global level, our business operations started to return to normal levels in
the first quarter of 2023.
The temporary, periodic closure of our facilities, labor shortages or delay in the delivery
process did not have material adverse impact on our operational results given our vast network.
In addition, certain impacts from the COVID-19 pandemic on our financial performance might
be one-off and non-recurring. For example, after the COVID-19 pandemic ends, we may not
be able to receive benefits from the COVID-19 related government policy support, such as
one-off subsidies for social insurance or tax relief, which we believe are not material to our
results of operations.
Despite the impact of the COVID-19 pandemic, our revenue increased by 216.0% from
US$1,535.4 million in 2020 to US$4,851.8 million in 2021, and further increased by 49.8% to
US$7,267.4 million in 2022.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
We have identified the accounting policies that we believe are the most significant to the
preparation of our consolidated financial statements. Some of our critical accounting policies
involve subjective assumptions and estimates and complex judgments by our management
relating to accounting items. Our significant accounting policies are set out in detail in the
Accountant’s Report in Appendix I to this document.
The estimates and associated assumptions, which we believe are reasonable under the
circumstances, are based on our historical experience and other factors, and form the basis of
our judgments about matters that are not readily apparent from other sources. When reviewing
our financial results, you should consider (i) our selection of critical accounting policies, (ii)
the judgment and other uncertainties affecting the application of such policies, and (iii) the
sensitivity of reported results to changes in conditions and assumptions. The determination of
these items requires management judgments based on information and financial data that may
change in future periods, and as a result, actual results could differ from those estimates.
Revenue Recognition
Revenue is recognized when (or as) a performance obligation is satisfied, i.e. when control of
the goods or services underlying the particular performance obligation is transferred to the
customer.
– 267 –
Control is transferred over time and revenue is recognized over time by reference to the
progress towards complete satisfaction of the relevant performance obligation if one of the
following criteria is met:
• The customer simultaneously receives and consumes the benefits provided by our
performance as we perform;
• Our performance creates or enhances an asset that the customer controls as we perform;
or
• Our performance does not create an asset with an alternative use to us and we have an
enforceable right to payment for performance completed to date.
Otherwise, revenue is recognized at a point in time when the customer obtains control of the
distinct goods or services.
A contract asset represents our right to consideration in exchange for goods or services that we
transferred to a customer that is not yet unconditional. It is assessed for impairment in
accordance with IFRS 9. In contrast, a receivable represents our unconditional right to
consideration, i.e. only the passage of time is required before payment of that consideration is
due.
A contract liability represents our obligation to transfer goods or services to a customer for
which we have received consideration (or an amount of consideration is due) from the
customer. A contract asset and a contract liability relating to a contract are accounted for and
presented on a net basis.
(1) Express delivery services
(i) Services provided to pick-up outlets of network partners
We offer express delivery services to network partners in China and other countries,
including sorting, line-haul transportation, delivery and other relevant network
management services. We generally involve other network partners in delivery. We
act as principal in providing the entire express delivery service as we control the
dispatching services from other network partners to integrate into one complete
express delivery service and are primarily responsible for the fulfilment of the
express delivery service.
We charge pickup outlets fees based on the parcel’s weight and route to the end
recipient’s destination, and generally require prepayment of such service fees. We
satisfy the performance obligation of express delivery service and recognize revenue
over time and use an output method of progress based on time-in-transit for express
delivery service.
In addition, we also charge network partners fees for initial operating training and
other initial services to network partners, and such fees are generally recognized as
revenue when the services are completed.
(ii) Services provided to unconsolidated operating entities of regional sponsors
We provide network services to unconsolidated operating entities of regional

sponsors, which include technology system support, training, access to our logos
and brand names, and general network arrangement services. We are not responsible
or acting as principal for relevant express delivery services regarding orders made
by the operating entities of regional sponsors through the network and performed by
– 268 –
other operating entities of regional sponsors. We charge fees from operating entities
of regional sponsors based on parcel volumes. The network service is considered as
a series of network management and oversight services as they are substantially the
same and have the same pattern of transfer to the customers. The revenue from the
network service is recognized on a monthly basis according to monthly fees
chargeable to the operating entities of regional sponsors.
In some routes, the unconsolidated operating entities of regional sponsors will use
the sorting centers operated by us, and in such situations, we are responsible for the
express delivery service provided by our sorting centers, including parcel sorting,
line-haul transportation and other services contained in the service contracts, and
charge for such service based on the size, weight, route to the end recipient’s
destination and other factors of a parcel. Such express delivery service is considered
a separated performance obligation in addition to the network service. We satisfy the
performance obligation of such express delivery service and recognize revenue over
time and use an output method of progress based on time-in-transit for the express
delivery service.
We issue billings on a monthly basis and grant certain credit periods to such
operating entities of regional sponsors.
During the Track Record Period, we provided services to unconsolidated regional

operating entities in Indonesia, Thailand and other countries. As of December 31,
2022, we had acquired all of the unconsolidated regional operating entities in
Indonesia and Thailand, and after such acquisitions, we directly and substantially
provide our integrated express delivery service to our enterprise and individual
customers in these countries.
(iii) Services provided to enterprise customers/individual customers
We also provide an integrated express delivery service directly to certain enterprise

customers and directly to individual customers. We involve outlets of network
partners or operating entities of regional sponsors in pickup, dispatching and other
services. We act as principal in providing the entire express delivery service as we
control the relevant services provided by other outlets of network partners or
operating entities of regional sponsors to integrate into one complete express
delivery service, and we are primarily responsible for the fulfilment of the express
delivery service.
We charge the customers based on the size, weight, route to the end recipient’s
destination and other factors of a parcel. We generally issue billings on a regular
basis and grant certain credit periods to such customers. We satisfy the performance
obligation of such express delivery service and recognize revenue over time and use
an output method of progress based on time-in-transit for the express delivery
service.
(iv) Cash on delivery services
For cash on delivery services, we are generally engaged by customers (normally

online shopping e-commerce platforms or online merchants) to collect cash
payments for the merchandise from end users, then disburse the cash to such
customers, and charge certain proportion of the cash payments as service fees as a
value-added service on top of the express delivery services. Generally all of such
service contracts include only one performance obligation as normally the
abovementioned or other relevant promises contained in the service contracts are not
– 269 –
considered to be separately identifiable due to the fact that such promises are highly
interrelated, and generally the customer expects us to deliver services with
integration of such promises.
For cash on delivery services, we generally satisfy a performance obligation and

recognize revenue at a point in time once such services are completed.
We provide customers with certain volume-based incentives in relation to express

delivery services, which represent variable considerations and are recorded as reductions
to the related revenue. We estimate the variable considerations to the extent that it is
highly probable that a significant reversal in the amount of cumulative revenue
recognized will not occur. As the incentives are generally determined on a monthly basis,
the uncertainty in estimating the variable considerations to be recorded is very limited.
(2) Cross-border services
For our cross-border services provided to customers, we are generally acting as principal
in providing cargo or parcel collection, customs clearances, and dispatching services to
such customers as we are primarily responsible for and have control over the services. A
substantial part of such service contracts includes only one performance obligation as
normally the abovementioned or other relevant promises contained in the service
contracts are considered to be not separately identifiable due to the fact that such
promises are highly interrelated, and generally the customer expects us to deliver services
with integration of such promises.
For such service, we generally satisfy a performance obligation and recognize revenue
over time as we transfer control of such service over time, since the customers receive the
benefit of the service as the goods are transported from one location to another. Revenue
is recognized based on the extent of progress towards completion of the performance
obligation. We use an output method of progress based on time-in-transit as it best depicts
the transfer of control to the customers.
(3) Other services
Revenue also includes sales of accessories, such as J&T-branded packing supplies and
apparel. Revenue is recognized when control of the product is transferred to the customer
and in an amount we expect to earn in exchange for the product.
Contract assets and liabilities
Contract assets mainly include unbilled receivables resulting from uncompleted services and
contract liabilities mainly include deferred revenue.
Share-based compensation
We operate share incentive plans, under which we receive services from employees as
consideration for our equity instruments. The fair value of the equity instruments received in
exchange for the services is recognized as an expense on the consolidated income statement
with a corresponding increase in equity.
In terms of the equity instruments awarded to employees, the total amount to be expensed is
determined by reference to the fair value of equity instruments granted. The total amount
expensed is recognized over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied if applicable.
– 270 –
At the end of each reporting period, we revise our estimates of the number of equity
instruments that are expected to vest based on the non-marketing vesting and service
conditions. We recognize the impact of the revision to original estimates, if any, in the
consolidated income statement, with a corresponding adjustment to equity.
In some circumstances, employees may provide services in advance of the grant date and
therefore the grant date fair value is estimated for the purposes of recognizing the expense
during the period between the service commencement period and grant date.
Business combination
The acquisition method of accounting is used to account for all business combinations,
regardless of whether equity instruments or other assets are acquired. The consideration
transferred for the acquisition of a subsidiary comprises the:
• fair values of the assets transferred,
• liabilities incurred to the former owners of the acquired business,
• equity interests issued by us,
• fair value of any asset or liability resulting from a contingent consideration arrangement,
and
• fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are, with limited exceptions, measured initially at their fair values at the
acquisition date. We recognize any non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s
proportionate share of the acquired entity’s net identifiable assets.
Acquisition-related costs are expensed as incurred.
The excess of the: (i) consideration transferred, (ii) amount of any non-controlling interest in
the acquired entity, and (iii) acquisition-date fair value of any previous equity interest in the
acquired entity over the fair value of the net identifiable assets acquired is recorded as
goodwill. If those amounts are less than the fair value of the net identifiable assets of the
business acquired, the difference is recognized directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the
future are discounted to their present value as of the date of exchange. The discount rate used
is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could
be obtained from an independent financier under comparable terms and conditions. Contingent
consideration is classified either as equity or financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair value with changes in fair value
recognized in profit or loss.
If the business combination is achieved in stages, the acquisition date carrying value of the
acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the
acquisition date. Any gains or losses arising from such remeasurement are recognized in profit
or loss.
– 271 –
Property, plant and equipment
All property, plant and equipment are stated at historical cost less depreciation. Historical cost
includes expenditure that is directly attributable to the acquisition of the items. Cost may also
include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign
currency purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to our Company and the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognized when replaced. All
other repairs and maintenance are charged to profit or loss during the reporting period in which
they are incurred.
Depreciation is calculated using the straight-line method to allocate their costs to their residual
values over their estimated useful lives as follows:
Buildings and warehouses 10-20 years

Logistics equipment 3-10 years
Vehicles 3-10 years
Office equipment 2-5 years
Lands Infinite useful life
Leasehold improvements Estimated useful lives or remaining lease terms,
whichever is shorter
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in profit or loss.
Financial liabilities at fair value through profit or loss
Before and during the Track Record Period, we entered into a series of share purchase
agreements with certain investors and issued Series Pre-A1 Preferred Shares, Series Pre-A2
Preferred Shares, Series A Preferred Shares, Series B Preferred Shares. Series B+ Preferred
Shares, Series C1 Preferred Shares, Series C2 Preferred Shares and Jet Global Series A
Preferred Shares.
We designated the convertible preferred shares as financial liabilities, of which the host
contracts are financial liabilities, at fair value through profit or loss, which are initially
recognized at fair value. Any directly attributable transaction costs are recognized as finance
costs in profit or loss.
The component of fair value changes relating to our own credit risk is recognized in other
comprehensive income/(loss). Amounts recorded in other comprehensive income/(loss) related
to credit risk are not subject to recycling in profit or loss, but are transferred to retained
earnings when realized. Fair value changes relating to market risk are recognized in profit or
loss.
– 272 –
The convertible preferred shares are classified as current liabilities unless we have an
unconditional right to defer settlement of the liability for at least 12 months after the reporting
period.
Derivatives are initially recognized at fair value on the date a derivative contract is entered into
and are subsequently remeasured to their fair value at the end of each reporting period.
Impairment of investments and other financial assets
We assess on a forward-looking basis the expected credit loss associated with our debt
instruments carried at amortized cost and FVOCI. The impairment methodology applied
depends on whether there has been a significant increase in credit risk.
For trade receivables, we apply the simplified approach permitted by IFRS 9, which requires
expected lifetime losses to be recognized from initial recognition of the receivables, see Note
26 to the Accountant’s Report in Appendix I to this document.
Goodwill
Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not

amortized, but is tested for impairment annually, or more frequently if events or changes in
circumstances indicate that it might be impaired, and is carried at cost less accumulated
impairment losses. Gains and losses on the disposal of an entity include the carrying amount
of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The
allocation is made to those cash-generating units or groups of cash-generating units that are
expected to benefit from the business combination in which the goodwill arose. The units or
groups of units are identified at the lowest level at which goodwill is monitored for internal
management purposes, being the operating segments.
Fair value measurement of level 3 financial instruments
Our level 3 financial instruments mainly represent investments in Windfall T&L SPC,
convertible bonds issued by Huisen Global Limited (“Huisen Global”), and our convertible
preferred shares. As these instruments are not traded in active markets, their fair values have
been determined by using applicable valuation techniques, which involve a significant degree
of management judgment and are inherently uncertain.
We applied the discounted cash flow method to determine the underlying equity value and
adopted option pricing method and equity allocation model to determine the convertible
preferred shares. Key assumptions, such as discount rate and volatility, are disclosed in Note
24 and Note 29 to the Accountant’s Report in Appendix I to this document. Considerable
judgment is required to interpret market data used in the valuation techniques. The use of
different market assumptions and/or estimation methodologies may have a material effect on
the estimated fair value amounts.
– 273 –
RESULTS OF OPERATIONS
The following table sets forth our consolidated income statements, both in absolute amounts
and as percentages of our total revenue, for the periods indicated. This information should be
read together with our consolidated financial statements and related notes included elsewhere
in this document. The operating results in any period are not necessarily indicative of the
results that may be expected for any future period.

2020 2021 2022
US$ % US$ % US$ %
Revenue . . . . . . . . . . . . . . . . 1,535,425 100.0 4,851,800 100.0 7,267,428 100.0

Cost of revenue . . . . . . . . . . . (1,796,913) (117.0) (5,396,544) (111.2) (7,537,666) (103.7)
Gross loss. . . . . . . . . . . . . . . (261,488) (17.0) (544,744) (11.2) (270,238) (3.7)

Selling, general and
administrative expenses . . . . . (365,869) (23.8) (1,129,024) (23.3) (1,095,528) (15.1)
Research and development
expenses . . . . . . . . . . . . . . (14,129) (0.9) (41,031) (0.8) (44,483) (0.6)
Net impairment losses on
financial assets . . . . . . . . . . (9,488) (0.6) (41,320) (0.9) (37,219) (0.5)
Other income . . . . . . . . . . . . . 17,056 1.1 82,542 1.7 98,149 1.4
Other gains/(losses), net . . . . . . 27,474 1.8 26,370 0.5 (40,246) (0.6)
Operating loss . . . . . . . . . . . . (606,444) (39.5) (1,647,207) (34.0) (1,389,565) (19.1)

Finance income . . . . . . . . . . . 1,965 0.1 9,476 0.2 22,002 0.3
Finance costs . . . . . . . . . . . . . (13,831) (0.9) (99,077) (2.0) (99,499) (1.4)
Finance cost, net . . . . . . . . . . . (11,866) (0.8) (89,601) (1.8) (77,497) (1.1)

Fair value change of financial
assets and liabilities at fair
value through profit or loss . . . – – (4,383,532) (90.3) 3,050,694 42.0
Share of results of associates . . . (323) (0.0) 1,208 (0.0) (302) (0.0)
(Loss)/Profit before
income tax . . . . . . . . . . . . . (618,633) (40.3) (6,119,132) (126.1) 1,583,330 21.8
Income tax expense . . . . . . . . . (45,530) (3.0) (73,126) (1.5) (10,763) (0.1)
(Loss)/Profit for the year . . . . . (664,163) (43.3) (6,192,258) (127.6) 1,572,567 21.6
Attributable to
Owners of the Company . . . . . . (564,836) (36.8) (6,046,983) (124.6) 1,656,168 22.8
Non-controlling interests . . . . . . (99,327) (6.5) (145,275) (3.0) (83,601) (1.2)
(664,163) (43.3) (6,192,258) (127.6) 1,572,567 21.6
– 274 –
NON-IFRS MEASURES
To supplement our consolidated results which are prepared and presented in accordance with
IFRS, we use adjusted (loss)/profit and adjusted EBITDA as additional financial measures,
which are not required by, or presented in accordance with, IFRS. We believe that these
non-IFRS measures facilitate comparisons of operating performance from period to period and
company to company by eliminating the potential impact of items that our management does
not consider to be indicative of our operating performance, such as certain non-cash items, the
impact of certain investment transactions, non-recurring items associated with the
[REDACTED] or our acquisition of BEST Express China, and other items not directly related
to our operating activities. The use of these non-IFRS measures has limitations as an analytical
tool, and you should not consider them in isolation from, as a substitute for, or superior to, our
results of operations or financial conditions as reported under IFRS. In addition, these
non-IFRS financial measures may be defined differently from similar terms used by other
companies, and may not be comparable to other similarly titled measures used by other
companies. Our presentation of these non-IFRS measures should not be construed as an
implication that our future results will be unaffected by unusual or non-recurring items.
The following table sets forth a reconciliation of our non-IFRS financial measures for the years
ended December 31, 2020, 2021 and 2022 to the nearest measures prepared in accordance with
IFRS:

2020 2021 2022
(in US$ thousands)

Add
[REDACTED] expenses . . . . . . . . . . . . . . . . . . . . – [REDACTED] [REDACTED]
Adjusted loss for the year . . . . . . . . . . . . . . . . . . (475,861) (911,347) (798,649)
– 275 –
Notes:

2020 2021 2022
(in US$ thousands)

Add
Finance income . . . . . . . . . . . . . . . . . . . . . . . . . (1,965) (9,476) (22,002)
Finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,831 99,077 99,499
Adjusted EBITDA . . . . . . . . . . . . . . . . . . . . . . . (321,163) (528,131) (204,442)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . 266,561 427,436 331,582

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (616,227) (939,695) (334,906)
Others(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,652 (14,028) (168,789)
Un-allocated(4) . . . . . . . . . . . . . . . . . . . . . . . . . 26,851 (1,844) (32,329)
Notes:
– 276 –
MAJOR COMPONENTS OF RESULTS OF OPERATIONS
Revenue
The following table sets forth breakdown of our revenue by type in absolute amount and as a
percentage of our total revenue, for the periods indicated:
2020 2021 2022
US$ % US$ % US$ %
Express delivery services . . . . . 1,482,476 96.6 4,570,732 94.2 6,480,300 89.2

Cross-border services . . . . . . . . 9,519 0.6 234,761 4.8 710,450 9.8
Sale of accessories . . . . . . . . . 34,166 2.2 30,350 0.6 23,730 0.3
Others (1) . . . . . . . . . . . . . . . . 9,264 0.6 15,957 0.4 52,948 0.7
Total . . . . . . . . . . . . . . . . . . 1,535,425 100.0 4,851,800 100.0 7,267,428 100.0
Note:
(1) Include our rental income and other revenue.
During the Track Record Period, we generated most of our revenues from express delivery
services we provided to our customers including our network partners, e-commerce platforms,
other enterprise customers and individual customers. Our customers also include our
unconsolidated regional operating entities, such as the SEA entities before we acquired the
controlling interest in them in 2021. In general, our revenue from express delivery services is
driven by our parcel volume and revenue per parcel. For parcels from our network partners, we
collect service fees for the use of our delivery network. Our network partners generally charge
each end customer a delivery service fee directly, and they can determine the price to end
customers based on their own costs which include the service fees paid to us and their own
operating costs. For parcels from unconsolidated regional operating entities, we charge these
entities for the use of our system and network. We also directly provide express delivery
services to certain enterprise customers and e-commerce platforms. In connection with such
services to major customers, we may also provide volume discounts based on various factors
such as seasonality and mix of services they use. Pricing for express delivery services is
generally determined based on parcel size and weight, shipping distance, speed of service and
market conditions.
Our revenues also include (i) revenues from our cross-border services, which include
cross-border small parcel shipments, freight forwarding, and international warehousing
solutions, (ii) revenues from sale of accessories, such as our J&T branded packing supplies and
apparel, and (iii) other revenues, primarily comprised of rental income from the lease of
reusable materials and logistics properties.
– 277 –
Revenue by geographic segment
The table below sets forth a breakdown of our revenue by geographic segment, in absolute
amount and as a percentage of our total revenue, for the periods indicated:

2020 2021 2022
US$ % US$ % US$ %
Southeast Asia . . . . . . . . . . . . 1,046,504 68.2 2,377,544 49.0 2,381,726 32.8

China . . . . . . . . . . . . . . . . . 478,847 31.2 2,181,368 45.0 4,096,177 56.4
Others (1) . . . . . . . . . . . . . . . . 10,074 0.6 292,888 6.0 789,525 10.8
Total . . . . . . . . . . . . . . . . . . 1,535,425 100.0 4,851,800 100.0 7,267,428 100.0
Note:
(1) Include revenue from our cross-border services and revenue from express delivery services in the New
Markets.
We generate substantially all of our revenue in Southeast Asia and China from express delivery
services. The table below illustrates the growth in our parcel volume from express delivery
services in Southeast Asia and China for the periods indicated:

2020 2021 2022
(in millions)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . . 1,153.8 2,160.8 2,513.2

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,083.5 8,334.3 12,025.6
The following table sets forth our revenue per parcel for express delivery services in Southeast
Asia and China for the periods indicated:

2020 2021 2022
(US$ per parcel)
Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . . 0.91 1.10 0.95

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.23 0.26 0.34
During the Track Record Period, our revenue per parcel in Southeast Asia was influenced by
the growth of the e-commerce industry in countries where we operate, market conditions, our
ability to improve pricing terms, the mix of parcel volumes from different countries across
Southeast Asia and fluctuation of foreign exchange rate against U.S. dollars, and our
acquisition of the SEA entities. See “– Period to Period Comparison of Results of Operations
– Year ended December 31, 2021 Compared to Year ended December 31, 2020 – Revenue” in
this section.
– 278 –
During the Track Record Period, the increase in our revenue per parcel in China was primarily
driven by our expanding network and reach to customers, our ability to provide quality services
and our ability to improve pricing terms, as well as a pricing stabilization trend as a result of
the PRC government’s policy guidance of fair competition in 2021.
Cost of Revenue
Our cost of revenue primarily consists of (i) fulfillment costs, (ii) line-haul costs, (iii) staff
costs, (iv) other labor costs, (v) depreciation and amortization, (vi) impairment losses, and (vii)
other cost of revenue.
The following table sets forth the components of our cost of revenue in absolute amount and
as a percentage, for the periods indicated:

2020 2021 2022
US$ % US$ % US$ %
Fulfillment costs . . . . . . . . . . . 820,139 45.6 2,385,225 44.2 3,320,187 44.0

Line-haul costs . . . . . . . . . . . . 368,172 20.5 1,341,433 24.9 2,221,664 29.5
Staff costs . . . . . . . . . . . . . . . 306,000 17.0 701,196 13.0 645,682 8.6
Other labor costs. . . . . . . . . . . 93,149 5.2 308,451 5.7 382,250 5.1
Depreciation and amortization . . 82,554 4.6 192,207 3.6 443,466 5.9
Impairment losses . . . . . . . . . . – – 250,292 4.6 219,080 2.9
Others . . . . . . . . . . . . . . . . . 126,899 7.1 217,740 4.0 305,337 4.0
Total . . . . . . . . . . . . . . . . . . 1,796,913 100.0 5,396,544 100.0 7,537,666 100.0
Fulfillment costs mainly include delivery cost we pay to our network partners and pick-up,
transit, sorting and delivery cost we pay to unconsolidated regional operations. Line-haul costs
include costs paid to third-party transportation service providers for additional capacity
utilized during peak periods, vehicle fuel costs and tolls, and air transportation expenses. Staff
costs include salary and benefits of our employees involved in warehousing, sorting, picking
up, packaging, shipping and delivery. Other labor costs primarily include costs in relation to
external labor forces that we use to supplement our internal capacity across our business
processes. Depreciation and amortization include expenses in relation to right of use assets in
relation to the operating lease of our logistics facilities and certain equipment under IFRS 16.
Impairment losses mainly include impairment of redundant property, plant and equipment that
we identified after the acquisition of BEST Express China. Other cost of revenue mainly
includes (i) cost of packaging materials, (ii) rental costs, comprised of costs for short-term
leases of certain warehouses and vehicles that are not capitalized, (iii) utility costs such as
water and electricity charges, and (iv) other miscellaneous operating costs and maintenance
expenses.
– 279 –
Cost of revenue by geographic segment
The following table sets forth our cost of revenue by geographic segment, in absolute amount
and as a percentage of our total cost of revenue, for the periods indicated:

2020 2021 2022
US$ % US$ % US$ %
Southeast Asia. . . . . . . . . . . 734,551 40.9 1,715,413 31.8 1,905,724 25.3

China . . . . . . . . . . . . . . . . 1,055,581 58.7 3,400,061 63.0 4,760,937 63.2
Others (1) . . . . . . . . . . . . . . 6,781 0.4 281,070 5.2 871,005 11.5
Total . . . . . . . . . . . . . . . . 1,796,913 100.0 5,396,544 100.0 7,537,666 100.0
Note:
(1) Include cost of revenue for our cross-border services and express delivery services in the New Markets.
Gross Profit/(Loss)
Gross profit/(loss) represents the difference between revenue and cost of revenue. We had a
gross loss of US$261.5 million in 2020, US$544.7 million in 2021 and US$270.2 million in
2022. Our negative gross margin was 17.0% in 2020, 11.2% in 2021 and 3.7% in 2022,
respectively.
The following table sets forth our gross profit/(loss) and (negative) gross margin by geographic
segment for the periods indicated:
2020 2021 2022
(Negative) (Negative) (Negative)
Gross profit/ gross Gross profit/ gross Gross profit/ gross
(loss) margin (loss) margin (loss) margin
US$ % US$ % US$ %
Southeast Asia . . . 311,953 29.8 662,131 27.8 476,002 20.0

China. . . . . . . . . (576,734) (120.4) (1,218,693) (55.9) (664,760) (16.2)
Others (1) . . . . . . . 3,293 32.7 11,818 4.0 (81,480) (10.3)
Total . . . . . . . . . (261,488) (17.0) (544,744) (11.2) (270,238) (3.7)
Note:
– 280 –
Selling, General and Administrative Expenses
Our selling, general and administrative expenses primarily consist of (i) staff costs, including
salaries, bonus, other compensation and share-based compensation expenses to our staff, (ii)
share-based payments related to equity transactions, (iii) office related expenses,
(iv) professional service fees including auditor’s remuneration, [REDACTED]-related service
fees and fees for other consulting services, (v) promotion and marketing expenses relating to
branding initiatives and advertising activities, (vi) depreciation and amortization of our
right-of-use assets in relation to the leases of our offices, (vii) one-off impairment of goodwill
based on peers’ performance and general industry trend, and (viii) other selling, general and
administrative expenses. The following table sets forth the components of our selling, general
and administrative expenses, in absolute amount and as a percentage of our total selling,
general and administrative expenses, for the periods indicated:

2020 2021 2022
US$ % US$ % US$ %
Staff costs . . . . . . . . . . . . . . . 288,059 78.8 722,309 64.0 695,065 63.4

Share-based payments related to
equity transactions . . . . . . . . 27,229 7.4 236,418 20.9 37,262 3.4
Office related expenses . . . . . . . 12,339 3.4 24,072 2.1 42,624 3.9
Professional service fees . . . . . . 2,530 0.7 23,146 2.1 29,228 2.7
Promotion and marketing
expenses . . . . . . . . . . . . . . 15,509 4.2 18,036 1.6 24,709 2.3
Depreciation and amortization . . 14,189 3.9 27,493 2.4 59,566 5.4
Impairment of goodwill . . . . . . – – – – 117,502 10.7
Others . . . . . . . . . . . . . . . . . 6,014 1.6 77,550 6.9 89,572 8.2
Total . . . . . . . . . . . . . . . . . . 365,869 100.0 1,129,024 100.0 1,095,528 100.0
Our staff costs during the Track Record Period included share-based compensation expenses
related to employee benefits of US$161.1 million, US$367.3 million and US$244.1 million in
2020, 2021 and 2022, respectively. These share-based compensation expenses included
expenses related to share-based awards granted to employees and management under our share
incentive plan and shares granted to certain regional sponsors outside of our share incentive
plan in 2021. To determine the fair value of the shares granted, our Group appointed an external
valuer to provide assistance in the valuation of the fair value of the ordinary shares and equity
interests. The discounted cash flow method is adopted to determine the underlying equity fair
value of the Group and the equity allocation model is applied to determine the fair value of the
underlying ordinary share. See Note 26 to the Accountant’s Report in Appendix I to this
document for the key assumptions in determining the fair value of the ordinary shares and
equity interests.
– 281 –
Our share-based payments related to equity transactions were US$27.2 million, US$236.4
million and US$37.3 million in 2020, 2021 and 2022, respectively, which included expenses
related to (i) repurchases of Class A Shares and Class B Shares from certain key management
personnel and a shareholder in 2021, (ii) ordinary shares and preferred shares repurchased or
to be repurchased accompanying Series C2 Preferred Share issuances in 2021 and 2022, and
(iii) the fair value difference of certain preferred shares issued in financings and the total
consideration received due to lengthy settlement periods during the Track Record Period.
Research and Development Expenses
Our research and development expenses primarily consist of (i) staff cost, including salaries,
bonuses and share-based compensation expenses to our research and development personnel,
(ii) depreciation and amortization of intangible assets and (iii) others, primarily including
utilities, rent and other expenses necessary to support our research and development activities.
The following table sets forth the components of our research and development expenses, in
absolute amount and as a percentage of our total research and development expenses, for the
periods indicated:

2020 2021 2022
US$ % US$ % US$ %
Staff cost (1) . . . . . . . . . . . . . . 11,196 79.2 38,256 93.3 39,332 88.4

Depreciation and amortization . . 559 4.0 789 1.9 2,915 6.6
Others . . . . . . . . . . . . . . . . . 2,374 16.8 1,986 4.8 2,236 5.0
Total . . . . . . . . . . . . . . . . . . 14,129 100.0 41,031 100.0 44,483 100.0
Note:
(1) Include share-based compensation expenses related to employee benefits of nil, US$15.3 million and nil,
respectively, in 2020, 2021 and 2022.
Net Impairment Losses on Financial Assets
Our net impairment losses on financial assets primarily consist of impairment losses on trade
receivables and other receivables and impairment losses on other non-current assets. The
following table sets forth the components of our net impairment losses on financial assets, in
absolute amount and as a percentage of our total net impairment losses on financial assets, for
the periods indicated:

2020 2021 2022
US$ % US$ % US$ %
Impairment losses recognized,

net of reversal, on
– trade receivables . . . . . . . . . 3,694 38.9 39,004 94.4 34,997 94.0
– other receivables and other
non-current assets . . . . . . . . . 5,794 61.1 2,316 5.6 2,222 6.0
Total . . . . . . . . . . . . . . . . . . 9,488 100.0 41,320 100.0 37,219 100.0
– 282 –
Fair Value Change of Financial Liabilities at Fair Value Through Profit or Loss
Since our inception we have completed several rounds of financing by issuing different classes
of convertible preferred shares. We accounted the preferred shares as financial liabilities at fair
value through profit or loss. The convertible preferred shares are typically recognized at fair
value, and subsequent to the initial recognition, the preferred shares are carried at fair value,
with changes in fair value recognized in the consolidated income statements. Fair value change
of financial liabilities at fair value through profit or loss was nil in 2020. We recorded a fair
value loss of financial liabilities at fair value through profit or loss of US$4,383.5 million in
2021, compared to a fair value gain of financial liabilities at fair value through profit or loss
of US$3,050.7 million in 2022.
Prior to the [REDACTED], the preferred shares are not traded in any active market and the
fair value at respective reporting dates is determined using valuation techniques with the
assistance from an external valuer. We applied the discounted cash flow method to determine
the underlying equity value of the Group and adopted option-pricing method and equity
allocation model to determine the fair value of the preferred shares. See Note 29A to the
Accountant’s Report in Appendix I to this document for the key assumptions in determining the
fair value of the preferred shares.
Other Income
Other income primarily consists of (i) subsidy income, (ii) interest income on loans to related
parties and (iii) interest income on loans to third parties. The following table sets forth the
components of our other income, in absolute amount and as a percentage of our total other
income, for the periods indicated:

2020 2021 2022
US$ % US$ % US$ %
Subsidy income . . . . . . . . . . . 11,466 67.2 71,415 86.5 87,035 88.7

Interest income on loans to
related parties . . . . . . . . . . . 1,305 7.7 4,412 5.4 10,175 10.4
Interest income on loans to
third parties . . . . . . . . . . . . 4,285 25.1 6,715 8.1 939 0.9
Total . . . . . . . . . . . . . . . . . . 17,056 100.0 82,542 100.0 98,149 100.0
Our subsidy income was mainly related to (i) incentives in the PRC provided by local
governments based on the amounts of value-added tax paid, and (ii) subsidies provided by local
governments for economic recovery plans in Southeast Asian countries. We have received all
the subsidy income and there was no future obligation related to such subsidy income at the
end of each of the reporting period during the Track Record Period.
– 283 –
Other Gains/(Losses), Net
Our other gains/(losses), net, primarily consist of provisions for legal claims, exchange
gains/(losses), net, and net loss on disposal of property, plant and equipment during normal
course of business. The following table sets forth the components of our other gains/(losses),
net, for the periods indicated:

2020 2021 2022
(in US$ thousands)
Provisions for legal claims. . . . . . . . . . . . . . . . . . . – – (19,330)

Exchange gains/(losses), net . . . . . . . . . . . . . . . . . . 29,362 19,887 (17,338)
Net loss on disposal of property, plant and equipment . . (37) (1,424) (1,873)
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,851) 7,907 (1,705)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,474 26,370 (40,246)
Finance Costs, Net
Our finance costs, net, are primarily influenced by our finance income and finance costs. The
following table sets forth the components of our finance costs, net, for the periods indicated:

2020 2021 2022
(in US$ thousands)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . 1,965 9,476 22,002

Interest expenses on convertible preferred shares . . . . . – (81,602) –
Interest expenses on lease liabilities . . . . . . . . . . . . . (6,007) (13,860) (37,318)
Interest expenses on borrowings . . . . . . . . . . . . . . . (7,824) (3,615) (62,181)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,866) (89,601) (77,497)
Income Tax Expenses
The enacted income tax rates applicable to our entities may fluctuate because of the
preferential tax treatments and changes in income before taxes. For more details, see
“– Taxation” in this section. In 2020, 2021 and 2022, we had income tax expenses of US$45.5
million, US$73.1 million and US$10.8 million, respectively.
Taxation
We are subject to various rates of income tax under different jurisdictions. The following
summarizes major factors affecting our applicable tax rates in the Cayman Islands, the BVI,
Hong Kong, the PRC, Indonesia, Malaysia, Vietnam, Thailand, Singapore, Cambodia and the
Philippines, which we believe are significant.
Cayman Islands
We were incorporated as an exempted company with limited liability under the Cayman
Companies Act and accordingly are not subject to income tax in the Cayman Islands.
– 284 –
BVI
Our subsidiaries established under the BVI Business Companies Act 2004, as amended, are not
subject to income tax in the BVI.
Hong Kong
Our subsidiaries incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of
8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits
over HK$2,000,000 for the years ended December 31, 2020, 2021 and 2022.
PRC
Our PRC subsidiaries, as well as our consolidated affiliated entities and their subsidiaries, were
subject to a statutory tax rate of 25% on the assessable profits for the years ended December
31, 2020, 2021 and 2022 based on the existing legislation, interpretation and practices in
respect thereof and under the PRC Enterprise Income Tax Law (“EIT Law”), subject to
preferential tax treatments available to qualified enterprises in certain encouraged sectors of
the economy.
Shenzhen Yunlu Information Technology Co., Ltd., our subsidiary in China, is qualified as a
software enterprise under the relevant PRC laws and regulations. Accordingly, it is exempted
from PRC enterprise income tax for two years since the first profit-making year, followed by
a 50% reduction in the tax rate of 25% for the next three years.
In addition, certain of our subsidiaries will benefit from a preferential tax rate of 15% if they
are located in certain PRC regions, such as certain western regions and special economic zones,
as specified in the relevant catalog of encouraged industries, subject to certain general
restrictions described in applicable laws and regulations.
During the Track Record Period, several subsidiaries in PRC were qualified as small and micro
enterprises under applicable PRC tax laws and enjoyed a 12.5% to 50% reduction in certain
statutory taxable income, and a preferential income tax rate of 10% or 20%.
Indonesia
For the years ended December 31, 2020, 2021 and 2022, entities incorporated in Indonesia
were subject to the corporate income tax calculated based on the applicable tax rate of 22% on
the assessable profits of the subsidiaries in accordance with the Indonesia tax laws and
regulations.
Malaysia
Our subsidiaries in Malaysia are subject to Malaysia corporate income tax calculated based on
the applicable tax rate, the highest of which is at a rate of 24% on the assessable profits of the
subsidiaries in accordance with Malaysia tax laws and regulations.
Vietnam
Our subsidiaries in Vietnam are subject to Vietnam corporate income tax calculated based on
the applicable tax rate of 20% on the assessable profits of the subsidiaries in accordance with
Vietnam tax laws and regulations.
– 285 –
Thailand
Our subsidiaries in Thailand are subject to Thailand corporate income tax calculated based on
the applicable tax rate of 20% on the assessable profits of the subsidiaries in accordance with
Thailand tax laws and regulations.
The Philippines
For the six months period ended June 30, 2020, our subsidiaries in the Philippines were subject
to the Philippines CIT, which was calculated based on the applicable tax rate of 30% on the
assessable profits of the subsidiaries in accordance with the Philippines tax laws and
regulations. The applicable CIT tax rate has been decreased from 30% to 25% since July 1,
2020.
EFFECTS OF FOREIGN EXCHANGE RATE FLUCTUATIONS
Our financial information as expressed in U.S. dollars may be materially affected by

fluctuations in foreign exchange rates, and the figures may be higher or lower than would be
the case if exchange rates were stable.
The following table sets forth the data of revenue, cost of revenue and gross profit/(loss) by
geographic segment for the year ended December 31, 2021 if exchange rates were the same as
in the year ended December 31, 2020:
Year ended December 31, 2021

Per financial statements Excluding currency translation effect Currency translation difference(1)
Cost of Gross Cost of Gross Cost of Gross
Revenue revenue profit/(loss) Revenue revenue profit/(loss) Revenue revenue profit/(loss)
(in US$ thousands)
Southeast Asia . . . . 2,377,544 (1,715,413) 662,131 2,404,871 (1,735,969) 668,902 27,327 (20,556) 6,771
China . . . . . . . 2,181,368 (3,400,061) (1,218,693) 2,084,346 (3,248,833) (1,164,487) (97,022) 151,228 54,206
Others(2) . . . . . . 292,888 (281,070) 11,818 292,887 (281,070) 11,817 (1) – (1)
Total . . . . . . . . 4,851,800 (5,396,544) (544,744) 4,782,104 (5,265,872) (483,768) (69,696) 130,672 60,976
Notes:
(1) Represents, for each item, the difference between the amount as in our consolidated financial statements and
the amount excluding currency translation effect from 2020 to the period indicated, divided by the amount of
such item in our consolidated financial statements.
(2) Include our cross-border services and from express delivery services in the New Markets.
– 286 –
The table below illustrates the average revenue per parcel and average cost of revenue in
Southeast Asia and China for the year ended December 31, 2021 if exchange rates were the
same as the previous year:

2021
2021 (excluding
(per financial currency
statements) translation effect)
(US$, per parcel)
Southeast Asia
– revenue per parcel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.10 1.11
– cost of revenue per parcel . . . . . . . . . . . . . . . . . . . . . . . . . . 0.79 0.80
China
The following table sets forth the data of revenue, cost of revenue and gross profit/(loss) by
geographic segments for the year ended December 31, 2022 if exchange rates were the same
as in the year ended December 31, 2021:

Per financial statements Excluding currency translation effect Currency translation difference(1)
Cost of Gross Cost of Gross Cost of Gross
Revenue revenue profit/(loss) Revenue revenue profit/(loss) Revenue revenue profit/(loss)
(in US$ thousands)
Southeast Asia . . . . 2,381,726 (1,905,724) 476,002 2,518,383 (2,013,010) 505,373 136,657 (107,286) 29,371
China . . . . . . . 4,096,177 (4,760,937) (664,760) 4,235,739 (4,923,178) (687,439) 139,562 (162,241) (22,679)
Others(2) . . . . . . 789,525 (871,005) (81,480) 790,764 (872,328) (81,564) 1,240 (1,323) (83)
Total . . . . . . . . 7,267,428 (7,537,666) (270,238) 7,544,886 (7,808,516) (263,630) 277,459 (270,850) 6,609
Notes:
(1) Represents, for each item, the difference between the amount as in our consolidated financial statements and
the amount excluding currency translation effect from 2021 to the period indicated, divided by the amount of
such item in our consolidated financial statements.
(2) Include our cross-border services and from express delivery services in the New Markets.
– 287 –
The table below illustrates the average revenue and cost per parcel in Southeast Asia and China
for the year ended December 31, 2022 if exchange rates were the same as the previous year:

2022
2022 (excluding
(per financial currency
statements) translation effect)
(US$, per parcel)
Southeast Asia
China
PERIOD TO PERIOD COMPARISON OF RESULTS OF OPERATIONS
Year ended December 31, 2022 Compared to Year ended December 31, 2021
Revenue
Our revenues increased by 49.8% from US$4,851.8 million in 2021 to US$7,267.4 million in
2022. The increase was primarily attributable to the growth of our express delivery services
and cross-border delivery services.
Express delivery services. Our revenue from express delivery services increased by 41.8% from
US$4,570.7 million in 2021 to US$6,480.3 million in 2022, primarily due to an increase of
parcel volume driven by the expansion of our operations, expansion of our customer and
partner base and an increase in our market share in China.
Cross-border services. Our revenue from cross-border services increased by 202.6% from
US$234.8 million in 2021 to US$710.5 million in 2022, primarily attributable to increased
market demands and our efforts in developing the business.
Sale of accessories. Revenue from our sale of accessories decreased by 21.8% from US$30.4
million in 2021 to US$23.7 million in 2022, despite the growth in our parcel volume, as we
encouraged the use of environmentally friendly practices such as reusable materials.
Others. Our revenue from other services increased by 231.8% from US$16.0 million in 2021
to US$52.9 million in 2022 primarily due to an increase in our rental income from the lease
of reusable materials and logistics properties.
– 288 –
Southeast Asia. Our revenue from Southeast Asia was US$2,377.5 million in 2021, compared
to US$2,381.7 million in 2022. Our parcel volume in Southeast Asia increased from 2,160.8
million in 2021 to 2,513.2 million in 2022, attributable to the diversification of our customer
base and additions of e-commerce and social e-commerce platform partners. Our revenue per
parcel in Southeast Asia was US$1.10 in 2021 and US$0.95 in 2022. The change in revenue
per parcel is primarily attributable to (i) our strategic adjustment to pricing policies in light of
the market conditions, and (ii) the negative impact of currency translation on revenue from
Southeast Asia, see “– Effects of Fluctuations in Currency Exchange Rates.”
China. Our revenue from China increased from US$2,181.4 million in 2021 to US$4,096.2
million in 2022, primarily driven by our increased parcel volume in China and revenue per
parcel. Our parcel volume in China increased from 8,334.3 million in 2021 to 12,025.6 million
in 2022, and our revenue per parcel in China increased from US$0.26 to US$0.34 in the same
period, as we continued to improve service quality, expand partnerships with e-commerce
platforms, diversify our customer base, and thus enhance our bargaining power.
Others. Other revenue increased from US$292.9 million in 2021 to US$789.5 million in 2022,
primarily attributable to the growth in our cross-border services.
Cost of revenue
Our cost of revenue increased by 39.7% from US$5,396.5 million in 2021 to US$7,537.7
million in 2022, primarily attributable to increases in our fulfillment costs, line-haul costs and
staff costs in line with the increased parcel volume.
Fulfillment costs. Our fulfillment costs increased by 39.2% from US$2,385.2 million in 2021
to US$3,320.2 million in 2022, consistent with the expansion of our network and the increase
in parcel volume. Our fulfillment costs accounted for 44.2% and 44.0% of our total cost of
revenue in the corresponding periods.
Line-haul costs. Our line-haul costs increased by 65.6% from US$1,341.4 million in 2021 to
US$2,221.7 million in 2022. Our line-haul costs accounted for 27.6% and 30.6% of our
revenue in the corresponding periods. The increase is primarily due to (i) the growth of our
cross-border business, which incurred substantial air transportation expenses upfront, (ii) the
expansion of our fleets and increased usage of third-party transportation services to support the
growth of our express delivery services across markets, including the New Markets that we
entered into in 2022, and (iii) the acquisition of the SEA entities in the second half of 2021,
after which we consolidated the line-haul costs incurred by the SEA entities into our results of
operations.
Staff costs. Our staff costs decreased by 7.9% from US$701.2 million in 2021 to US$645.7
million in 2022. Our staff costs accounted for 14.5% and 8.9%, respectively, of our total
revenue in 2021 and 2022. The decrease was primarily due to a decrease in headcount and other
employee benefits as we optimized our operations globally and increased parcel volume from
regions where we cooperate with network partners, partially offset by an increase in staff costs
incurred in connection with our expansion in the New Markets in 2022.
Other labor costs. Our other labor costs increased by 23.9% from US$308.5 million in 2021
to US$382.3 million in 2022, in line with the increase in our parcel volume. Other labor costs
accounted for 6.4% and 5.3%, respectively, of our revenue in the corresponding periods.
– 289 –
Depreciation and amortization. Our depreciation and amortization increased by 130.7% from
US$192.2 million in 2021 to US$443.5 million in 2022, primarily attributable to depreciation
and amortization we recorded in relation to certain property, plant and equipment.
Impairment losses. We had impairment losses of US$250.3 million and US$219.1 million in
2021 and 2022, respectively, which we recorded primarily in connection with property, plants
and equipment that we identified as redundant and planned to dispose of in connection with our
integration of BEST Express China.
Others. Our other cost of revenue increased by 40.2% from US$217.7 million in 2021 to
US$305.3 million in 2022, which is consistent with the expansion of our network.
Our cost of revenue for Southeast Asia increased by 11.1% from US$1,715.4 million in 2021
to US$1,905.7 million in 2022, primarily driven by an increase in parcel volume in Southeast
Asia from 2,160.8 million to 2,513.2 million in the corresponding periods.
Our cost of revenue for China increased by 40.0% from US$3,400.1 million in 2021 to
US$4,760.9 million in 2022, consistent with the expansion of our business and the
corresponding increase in our parcel volume in China from 8.3 billion to 12.0 billion in the
corresponding periods.
Our other cost of revenue increased by 209.9% from US$281.1 million in 2021 to US$871.0
million in 2022, primarily attributable to the growth of our cross-border services and expansion
into the New Markets in 2022.
Gross profit/(loss)
As a result of the foregoing, our gross loss narrowed from US$544.7 million in 2021 to
US$270.2 million in 2022, and our negative gross margin narrowed from 11.2% in 2021 to
3.7% in 2022, primarily driven by the improving gross margin performance in China.
Our gross profit from Southeast Asia decreased from US$662.1 million in 2021 to US$476.0
million in 2022. Our gross margin in Southeast Asia decreased slightly from 27.8% to 20.0%
in 2022.
For China, we recorded gross losses of US$1,218.7 million and US$664.8 million in 2021 and
2022, respectively. We expect our gross margin from our express delivery services in China to
improve in the future. See “Business – Business Sustainability.”
For others, we had a gross profit of US$11.8 million in 2021 and a gross loss of US$81.5
million in 2022.
Our selling, general and administrative expenses decreased by 3.0% from US$1,129.0 million
in 2021 to US$1,095.5 million in 2022. The decrease was primarily attributable to (i) a
decrease in share-based compensation as part of our staff cost of US$123.2 million and (ii) a
decrease in share-based payments related to equity transaction of US$199.2 million, offset
mainly by (i) increased depreciation and amortization costs in relation to right-of-use assets,
driven by an expansion of our office premise during the same period, and (ii) increased
consumer advertising and marketing activities including the engagement of our global brand
ambassador.
– 290 –
Research and development expenses
Our research and development expenses were US$41.0 million in 2021 and US$44.5 million
in 2022. Our research and development expenses, excluding share-based compensation, were
US$25.8 million and US$44.5 million in 2021 and 2022, respectively, and the change was
primarily attributable to an increase in employee benefits in relation to the expansion of our
research and development headcounts to support our global expansion since late 2021.
Net impairment losses on financial assets
Our net impairment losses on financial assets were US$41.3 million in 2021 and US$37.2
million in 2022. Our impairment losses on financial assets in 2021 and 2022 mainly consisted
of impairment on trade receivables in relation to certain terminated network partners and
impairment losses that were consolidated into our balance sheets primarily in connection with
the acquisition of BEST Express China.
Other income
Our other income increased by 18.9% from US$82.5 million in 2021 to US$98.1 million in
2022, primarily due to an increase in our subsidy income from the PRC government.
Other gains/(losses), net
We had other gains, net of US$26.4 million in 2021 and other losses, net of US$40.2 million
in 2022, primarily due to (i) provisions for lawsuits in relation to the restructuring and
integration of acquired operations of BEST Express China, and (ii) a foreign exchange loss we
recognized in 2022 of US$17.3 million due to fluctuations in exchange rates of local currencies
in countries where we operate against U.S. dollars.
Operating loss
As a result of the foregoing, we had an operating loss of US$1,647.2 million in 2021 and an
operating loss of US$1,389.6 million in 2022.
Fair value change of financial assets and liabilities at fair value through profit or loss
We recorded a fair value gain of financial assets and liabilities at fair value through profit or
loss of US$3,050.7 million in 2022, compared to a fair value loss of financial liabilities at fair
value through profit or loss of US$4,383.5 million in 2021. The fair value change of financial
liabilities at fair value through profit or loss was primarily influenced by the fair value of our
convertible redeemable preferred shares, and the change in 2021 and 2022 was primarily
attributable to the changes in the valuation of our Company. See Note 29 to the Accountant’s
Report in Appendix I to this document for details regarding the changes in fair value changes
of financial liabilities at fair value.
Finance income
Our finance income increased by 132.2% from US$9.5 million in 2021 to US$22.0 million in
2022, due to increased interest income from bank deposits.
– 291 –
Finance costs
Our finance costs stayed relatively stable at US$99.1 million in 2021 and US$99.5 million in
2022, primarily due to (i) an increase in interest expense on borrowings from US$3.6 million
in 2021 to US$62.2 million in 2022, driven by the interest expense in relation to the senior
notes we issued and certain credit facility we utilized in 2022, and (ii) an increase in interest
expense on lease liabilities from US$13.9 million in 2021 to US$37.3 million in 2022, partially
offset by a decrease in interest expense on convertible preferred shares from US$81.6 million
in 2021 to nil in 2022. In 2021, we declared a special dividend and accounted for such
distribution to holders of preferred shares as interest expenses.
Income tax expenses
We had an income tax expenses of US$73.1 million and US$10.8 million, respectively, in 2021
and 2022.
(Loss)/profit for the year
As a result of the foregoing, we recorded a loss of US$6,192.3 million in 2021 and a profit of
US$1,572.6 million in 2022.
Year ended December 31, 2021 Compared to Year ended December 31, 2020
Revenue
Our revenues increased by 216.0% from US$1,535.4 million in 2020 to US$4,851.8 million in
2021. The increase was primarily attributable to the growth of our express delivery services
and cross-border services.
Express delivery services. Our revenue from express delivery services increased by 208.3%
from US$1,482.5 million in 2020 to US$4,570.7 million in 2021, primarily due to (i) the
increase in our parcel volume and market shares, and (ii) the increase in revenue per parcel,
in both Southeast Asia and China.
Cross-border services. Our revenue from cross-border services increased by 2,366.2% from
US$9.5 million in 2020 to US$234.8 million in 2021, primarily attributable to the ramping-up
of our cross-border services in 2021.
Sale of accessories. Revenue from our sale of accessories decreased by 11.2% from US$34.2
million in 2020 to US$30.4 million in 2021, despite the increase in our parcel volume, because
we encouraged the use of reusable and durable packaging materials and packaging efficiency
throughout our network.
Others. Our revenue from other services increased by 72.2% from US$9.3 million in 2020 to
US$16.0 million in 2021, primarily driven by an increase in the rental income we generated
from properties we owned in Indonesia. In 2020 and 2021, some of the SEA entities in
Indonesia were leasees of our properties in Indonesia. After we acquired the SEA entities, such
revenue became intra-group income and our Group no longer recognizes rental income in
connection with these properties rented and used by these SEA entities.
– 292 –
Southeast Asia. Our revenue from Southeast Asia increased from US$1,046.5 million in 2020
to US$2,377.5 million in 2021, primarily driven by our increased parcel volume and revenue
per parcel. Our parcel volume in Southeast Asia increased from 1,153.8 million in 2020 to
2,160.8 million in 2021, attributable to the growth in express delivery and e-commerce markets
and an increase in our market shares.
Our revenue per parcel in Southeast Asia increased from US$0.91 in 2020 to US$1.10 in 2021,
despite certain volume discount we provided to major e-commerce customers. The increase in
revenue per parcel was primarily attributable to change of the service provided by the Group
as a whole after the SEA entities were consolidated. Historically, a portion of the express
delivery orders were placed with and handled by the SEA entities directly before we acquired
the SEA entities. For such parcels, we provided the SEA entities with network services and
sorting services, while the SEA entities fulfilled the remaining portion of delivery process. In
early 2021, after the SEA entities demonstrated their abilities to carry out stable operations, we
initiated the process to acquire the SEA entities, and began to consolidate the operational
capacities of the SEA entities and enhance our abilities to provide consistent, quality customer
services. As a result, we streamlined and standardized our delivery services and other
arrangements. After the acquisitions were consummated and the SEA entities became part of
our Group, our Group as a whole became primarily responsible for the entire express delivery
service to customers and charged fees that were recognized as revenue.
China. Our revenue from China increased from US$478.8 million in 2020 to US$2,181.4
million in 2021, primarily driven by our increased parcel volume and revenue per parcel in
China. Our parcel volume in China increased from 2,083.5 million in 2020 to 8,334.3 million
in 2021, and our revenue per parcel in China increased from US$0.23 to US$0.26 in the same
period, primarily attributable to the expansion of our network in China and adjustment of our
pricing terms based on market conditions.
Others. Our other revenue increased from US$10.1 million in 2020 to US$292.9 million in
2021, primarily attributable to our preparation activities in the New Markets and our expansion
of cross-border service offerings.
Cost of revenue
Our cost of revenue increased by 200.3% from US$1,796.9 million in 2020 to US$5,396.5
million in 2021, primarily attributable to increases in our fulfillment costs, line-haul costs and
employee benefits.
Fulfillment costs. Our fulfillment costs increased by 190.8% from US$820.1 million in 2020
to US$2,385.2 million in 2021, consistent with the expansion of our network and increase in
parcel volume. Our fulfillment costs accounted for 53.4% and 49.2% of our total revenue in the
corresponding periods. The slight decrease was primarily due to our acquisition of the SEA
entities in 2021, as we no longer incur fulfillment costs but incurred line-haul costs, staff costs
and other costs for parcels picked up or delivered by such entities.
– 293 –
Line-haul costs. Our line-haul costs increased by 264.3% from US$368.2 million in 2020 to
US$1,341.4 million in 2021, as we expanded our fleets and used more transportation services
from third-party service providers to support our rapid growth. Our line-haul costs accounted
for 24.0% and 27.8% of our total revenue in the corresponding periods, respectively. The
increase was primarily because (i) we continued to expand our transportation capacity in 2021,
and (ii) we acquired the SEA entities in 2021 and accounted for costs in relation to parcels
picked up and delivered by such entities as line-haul costs, whereas we recorded fulfillment
costs for services performed by the SEA entities before the acquisition.
Staff costs. Our staff costs increased by 129.1% from US$306.0 million in 2020 to US$701.2
million in 2021, primarily due to an increase in the number of operational employees globally
as we continued to expand our business. Our staff costs accounted for 19.9% and 14.5%,
respectively, of our total revenue in 2020 and 2021. The decrease was primarily attributable to
the expansion of our operations in China, where we predominantly relied on network partners
– instead of our own staff – to pick up and deliver parcels.
Other labor costs. Our other labor costs increased by 231.1% from US$93.1 million in 2020
to US$308.5 million in 2021, consistent with the significant increase in our parcel volume and
revenue. Other labor costs accounted for 6.1% and 6.4% respectively, of our revenue in the
corresponding periods.
Depreciation and amortization. Our depreciation and amortization costs increased by 132.8%
from US$82.6 million in 2020 to US$192.2 million in 2021, primarily due to the expansion of
our network, which included the addition of new sorting centers and warehouses leading to
increased depreciation costs of right-of-use assets and plant and equipment.
Impairment. Our impairment increased from nil in 2020 to US$250.3 million in 2021, primarily
due to the impairment losses we recorded in connection with certain redundant property, plant
and equipment in connection with the process to integrate BEST Express China.
Others. Our other cost of revenue increased by 71.6% from US$126.9 million in 2020 to
US$217.7 million in 2021, consistent with the expansion of our network.
Southeast Asia. Our cost of revenue for Southeast Asia increased from US$734.6 million in
2020 to US$1,715.4 million in 2021, primarily because (i) our parcel volume in Southeast Asia
increased from 1,153.8 million to 2,160.8 million in the corresponding period, and (ii) we
accounted for all costs in relation to parcels collected and delivered by the SEA entities after
we acquired them in 2021, whereas we paid service fees, including pickup, sorting and delivery
fees, for the portion of service that the SEA entities provided to us before the acquisition.
China. Our cost of revenue for China increased from US$1,055.6 million in 2020 to
US$3,400.1 million in 2021, consistent with the expansion of our network and the increase in
our parcel volume from 2.1 billion to 8.3 billion in the corresponding period.
Others. Our cost of revenue for other operations increased by 4,045.0% from US$6.8 million
in 2020 to US$281.1 million in 2021, primarily attributable to the expansion of our
cross-border services and, to a lesser extent, our activities in the New Markets in preparation
for entering into these markets.
– 294 –
Gross profit/(loss)
As a result of the foregoing, our gross loss increased by 108.3% from US$261.5 million in
2020 to US$544.7 million in 2021, primarily attributable to the ramping-up of our service
offerings in China.
Our gross profit from Southeast Asia increased from US$312.0 million in 2020 to US$662.1
million in 2021, primarily due to the growth in the express delivery markets and the increase
in our market shares in Southeast Asian countries. Our gross margin in Southeast Asia
decreased slightly from 29.8% to 27.8% in 2021, primarily because we offered certain volume
discount to our major e-commerce customers as we delivered increased volumes of parcels for
them in 2021.
For China, we recorded gross losses of US$576.7 million and US$1,218.7 million,
respectively, in 2020 and 2021. The increase in our gross loss in China is primarily attributable
to (i) intense competition in China’s express delivery market that we faced during the
expansion of our network and (ii) expenditures in relation to our expansion, such as costs of
operating equipment and facilities, costs of leases and other operating costs. Our negative gross
margin improved from 120.4% in 2020 to 55.9% in 2021, reflecting our improved operational
efficiency with strong network effects, economies of scale and adjustments to our pricing
terms.
Our gross profit from other geographical segments increased by 258.9% from US$3.3 million
in 2020 to US$11.8 million in 2021.
Our selling, general and administrative expenses increased by 208.6% from US$365.9 million
in 2020 to US$1,129.0 million in 2021, primarily due to (i) an increase in our staff costs,
primarily attributable to increased employee benefit expenses in relation to share-based awards
granted to employees and management, shares granted to certain regional sponsors, and (ii) an
increase in share-based payments related to equity transactions, attributable to (A) repurchases
of Class A Shares and Class B Shares from certain shareholders in 2021, (B) Ordinary Shares
and preferred shares repurchased or to be repurchased accompanying Series C2 preferred share
issuances in 2021, and (C) the difference between the fair value of certain preferred shares
issued in financings and the total consideration received due to lengthy settlement periods in
2020 and 2021.
– 295 –
Research and development expenses
Our research and development expenses increased by 190.4% from US$14.1 million in 2020
to US$41.0 million in 2021, primarily due to share-based expenses of US$15.3 million in
relation to share-based awards we granted to our research and development personnel and
increased wage expense driven by an increase in research and development headcount.
Net impairment losses on financial assets
Our net impairment losses on financial assets increased by 335.5% from US$9.5 million in
2020 to US$41.3 million in 2021, primarily due to an increase of 955.9% in loss allowance for
trade receivables from US$3.7 million in 2020 to US$39.0 million in 2021, primarily in
relation to trade receivables we consolidated into our balance sheet as part of the acquisition
of BEST Express China.
Other income
Our other income increased by 383.9% from US$17.1 million in 2020 to US$82.5 million in
2021, primarily due to an increase in our subsidy income from the Chinese government and
local governments in Southeast Asian countries.
Other gains, net
Our other gains, net decreased by 4.0% from US$27.5 million in 2020 to US$26.4 million in
2021, primarily due to a decrease in our exchange gains, net, driven by the fluctuation in
exchange rates of local currencies in countries where we operate against U.S. dollars.
Operating loss
As a result of the foregoing, we had an operating loss of US$606.4 million in 2020 and an
operating loss of US$1,647.2 million in 2021.
Fair value change of financial assets and liabilities at fair value through profit or loss
We recorded fair value changes of financial assets and liabilities at fair value through profit or
loss of nil and US$4,383.5 million in 2020 and 2021, respectively, primarily due to an increase
of the fair value of our convertible preferred shares, as a result of an increase in the Company’s
equity value and adjustment of certain rights and obligations of our convertible preferred
shares.
Finance income
Our finance income increased by 382.2% from US$2.0 million in 2020 to US$9.5 million in
2021, primarily due to an increase in interest income from bank deposits.
Finance costs
Our finance costs increased by 616.3% from US$13.8 million in 2020 to US$99.1 million in
2021, primarily due to (i) an increase in interest expense on convertible preferred shares from
nil to US$81.6 million, as we declared a special dividend in 2021 and accounted for such
distribution to holders of preferred shares as interest expense, and (ii) an increase in interest
expense on lease liabilities from US$6.0 million in 2020 to US$13.9 million in 2021, partially
offset by a decrease in interest expense on borrowings from US$7.8 million in 2020 to US$3.6
million in 2021.
– 296 –
Income tax expenses
Our income tax expenses was US$45.5 million in 2020 and US$73.1 million in 2021. The
increase was primarily due to the increase in our taxable income, particularly for some of our
regional operating entities in Southeast Asia.
Loss for the year
As a result of the foregoing, our loss was US$664.2 million in 2020 and US$6,192.3 million
in 2021.
ANALYSIS OF KEY BALANCE SHEET ITEMS
The table below sets forth selected information from our consolidated statements of financial
position as of the dates indicated, which have been extracted from our audited consolidated
financial statements included in Appendix I to this document:

2020 2021 2022
(in US$ thousands)
Total non-current assets . . . . . . . . . . . . . . . . . . . . 628,286 3,028,218 3,089,262

Total current assets . . . . . . . . . . . . . . . . . . . . . . . 1,614,754 3,516,424 2,846,297
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,243,040 6,544,642 5,935,559
Total non-current liabilities . . . . . . . . . . . . . . . . . . 1,966,519 10,975,327 9,188,190

Total current liabilities . . . . . . . . . . . . . . . . . . . . . 1,147,020 2,205,739 1,731,617
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 3,113,539 13,181,066 10,919,807
Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 14 14
Share premium . . . . . . . . . . . . . . . . . . . . . . . . . . 33,184 607,734 603,829
Other reserves . . . . . . . . . . . . . . . . . . . . . . . . . . (166,468) (525,822) (434,108)
Accumulated losses . . . . . . . . . . . . . . . . . . . . . . . (625,953) (6,672,936) (5,016,768)
Equity/(deficits) attributable to owners of the
Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . (759,230) (6,591,010) (4,847,033)
Non-controlling interests . . . . . . . . . . . . . . . . . . . (111,269) (45,414) (137,215)
Total deficits . . . . . . . . . . . . . . . . . . . . . . . . . . . (870,499) (6,636,424) (4,984,248)
– 297 –
The following table sets forth our assets and liabilities as of the dates indicated:

2020 2021 2022
(in US$ thousands)
Non-current assets
Investment properties . . . . . . . . . . . . . . . . . . . . . . 53,065 718 507
Property, plant and equipment. . . . . . . . . . . . . . . . . 303,032 1,107,564 1,052,884
Right-of-use assets . . . . . . . . . . . . . . . . . . . . . . . 186,762 604,212 481,207
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . 6,014 1,129,194 963,569
Investments accounted for using the equity method . . . 319 5,552 3,590
Deferred income tax assets . . . . . . . . . . . . . . . . . . 5,001 9,848 43,107
Other non-current assets . . . . . . . . . . . . . . . . . . . . 74,093 171,130 63,348
Financial assets at fair value through profit or loss . . . – – 481,050
628,286 3,028,218 3,089,262
Current assets
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,954 29,359 29,120
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . 180,760 334,876 513,954
Prepayments, other receivables and other assets. . . . . . 745,363 882,190 703,010
Financial assets at fair value through profit or loss . . . 71,324 41,581 16,440
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . 928 125,970 79,725
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . 600,425 2,102,448 1,504,048
Total current assets . . . . . . . . . . . . . . . . . . . . . . 1,614,754 3,516,424 2,846,297
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,243,040 6,544,642 5,935,559
Non-current liabilities
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,917 29,062 1,020,897
Lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 111,378 391,232 341,471
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . 3,051 33,084 22,407
Employee benefit obligations . . . . . . . . . . . . . . . . . 2,258 9,185 7,765
Financial liabilities – redemption liabilities of shares
of JNT KSA (1) . . . . . . . . . . . . . . . . . . . . . . . . – 25,458 30,583
Financial liabilities at fair value through
profit or loss . . . . . . . . . . . . . . . . . . . . . . . . . . 1,812,915 10,487,306 7,765,067
Total non-current liabilities . . . . . . . . . . . . . . . . . 1,966,519 10,975,327 9,188,190
– 298 –

2020 2021 2022
(in US$ thousands)
Current liabilities
Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . 225,452 577,065 484,215
Advances from customers . . . . . . . . . . . . . . . . . . . 137,224 291,362 209,925
Accruals and other payables . . . . . . . . . . . . . . . . . . 304,362 915,352 776,378
Lease liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 63,639 207,490 151,195
Current income tax liabilities . . . . . . . . . . . . . . . . . 9,200 20,756 32,424
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407,143 59,965 77,480
Financial liabilities – ordinary share redemption

liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 133,749 –
Total current liabilities . . . . . . . . . . . . . . . . . . . . 1,147,020 2,205,739 1,731,617
Note:
(1) Relating to certain shares in JNT KSA, one of our regional operating entities, are held by a third-party investor
entitled to certain exit rights. See Note 26 to the Accountant’s Report in Appendix I to this document.
Assets
Trade receivables
Our trade receivables are primarily amounts due from customers for goods sold or services
performed in relation to services provided to certain e-commerce platforms customers and
cross-border customers.
The following table sets forth our trade receivables as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . 187,083 379,447 561,166

Less: provision for impairment . . . . . . . . . . . . . . . . (6,323) (44,571) (47,212)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,760 334,876 513,954
Our trade receivables increased by 85.3% from US$180.8 million as of December 31, 2020 to
US$334.9 million as of December 31, 2021, and further increased by 53.5% to US$514.0
million as of December 31, 2022, primarily due to the growth of the express delivery services
provided directly to e-commerce platforms during the Track Record Period and the growth of
our cross-border business in 2021 and 2022.
– 299 –
We generally allow a credit period of 30 to 120 days to our e-commerce and other customers.
The following table sets forth an aging analysis of our trade receivables, based on the invoice
date, as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Within 3 months . . . . . . . . . . . . . . . . . . . . . . . . . 175,892 347,768 514,895

3 to 6 months. . . . . . . . . . . . . . . . . . . . . . . . . . . 10,183 20,082 8,793
6 to 9 months. . . . . . . . . . . . . . . . . . . . . . . . . . . 705 5,302 1,702
9 to 12 months . . . . . . . . . . . . . . . . . . . . . . . . . . 105 2,425 4,917
Above 12 months . . . . . . . . . . . . . . . . . . . . . . . . 198 3,870 30,859
Less: provision for impairment . . . . . . . . . . . . . . . . (6,323) (44,571) (47,212)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,760 334,876 513,954
We apply the simplified approach under IFRS 9, which requires expected lifetime losses to be
recognized from our initial recognition of the receivables. The provision matrix is based on
historical observed default rates over the expected life of the trade receivables with similar
credit risk characteristics and forward-looking estimates. As of December 31, 2020, 2021 and
2022, we made provisions for the impairment of our trade receivables of US$6.3 million,
US$44.6 million and US$47.2 million, respectively. Our provisions as of December 31, 2021
and 2022 were primarily related to receivables from terminated network partners of BEST
Express China after the acquisition and during the subsequent integration of BEST Express
China.
The following table sets forth the turnover days of our trade receivables for the periods
indicated:

2020 2021 2022
Trade receivables turnover days(1) . . . . . . . . . . . . . . 27.6 19.4 21.3
Note:
(1) Calculated by dividing the average balance of trade receivables by revenues for the relevant period multiplied
by the number of days during the period. Average balance equals the sum of the beginning balance and ending
balance for the period divided by two.
Our trade receivables turnover days decreased from 27.6 days in 2020 to 19.4 days in 2021,
primarily due to the significant increase in our revenue from operations in China while the
beginning balance of trade receivables in 2021 was relatively small as we were still ramping
up our operations in China at that time. Our trade receivables turnover days slightly increased
from 19.4 days in 2021 to 21.3 days in 2022, due to the growth of express delivery business
provided to certain e-commerce platforms in Southeast Asia and the growth in cross-border
business.
As of April 30, 2023, we had settled approximately US$432.5 million, or 84.15%, of our trade
receivables as of December 31, 2022.
– 300 –
Prepayments, other receivables and other assets
Our prepayments, other receivables and other assets primarily consist of deposits, prepaid
taxes, receivables from our financing activity consideration, loans to related parties, prepaid
tax, deposits, prepaid expenses, interest receivables and others.
The following table sets forth our prepayments, other receivables and other assets as of the
dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Loans to related parties. . . . . . . . . . . . . . . . . . . . . 70,453 47,364 –

Loans to third parties . . . . . . . . . . . . . . . . . . . . . . 248,553 16,155 1,674
Receivable of Series A Preferred Share
consideration. . . . . . . . . . . . . . . . . . . . . . . . . . 236,862 – –
Receivable of Series C1 Preferred Share
consideration. . . . . . . . . . . . . . . . . . . . . . . . . . – 30,000 –
consideration. . . . . . . . . . . . . . . . . . . . . . . . . . – 159,922 –
Prepaid VAT and other taxes . . . . . . . . . . . . . . . . . 71,911 422,339 482,667
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,356 81,379 77,151
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . 22,431 65,333 76,255
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,211 66,298 66,302
Less: allowance for credit losses . . . . . . . . . . . . . . . (6,414) (6,600) (1,039)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745,363 882,190 703,010
Our prepayments, other receivables and other assets increased by 18.4% from US$745.4
million as of December 31, 2020 to US$882.2 million as of December 31, 2021, primarily due
to (i) an increase in deposits, which primarily represent deposits for our leased properties and
transportation services and reflected our consolidation of the financial position of BEST
Express China, (ii) an increase in prepaid VAT and other taxes from US$71.9 million as of
December 31, 2020 to US$422.3 million as of December 31, 2021, reflecting the prepaid tax
that was recorded by BEST Express China in 2021 and consolidated into our financial positions
and the prepaid tax relating our own operations in 2020 and loans we extended to SEA entities
when they were unconsolidated, and (iii) a decrease in loans to related parties from US$70.5
million to US$47.4 million.
Our prepayments, other receivables and other assets decreased from US$882.2 million as of
December 31, 2021 to US$703.0 million as of December 31, 2022, primarily due to (i) a
decrease in our loans extended to related parties from US$47.4 million to nil, (ii) a decrease
in our loans extended to third parties from US$16.2 million to US$1.7 million, and (iii)
settlement of the receivable of Series C1 Preferred Share consideration and Series C2 Preferred
Share consideration of US$30.0 million and US$159.9 million, respectively, partially offset by
an increase in prepaid VAT and other taxes from US$422.3 million to US$482.7 million.
– 301 –
Inventories
Our inventories primarily consist of the accessories such as our J&T-branded packing supplies
and apparels, as well as consumables including handheld terminals and packing materials.
Our inventories increased by 84.0% from US$16.0 million as of December 31, 2020 to
US$29.4 million as of December 31, 2021, due to our consolidation of the financial position
of BEST Express China. Our inventories stayed relatively stable at US$29.1 million as of
December 31, 2022 compared to US$29.4 million as of December 31, 2021.
Our inventories turnover days were 2.2 days in 2020, 1.5 days in 2021 and 1.4 days in 2022.
The decrease was primarily driven by the increased cost of revenue consistent with the
expansion of our business, while our average balance of inventories remained relatively stable.
The inventories turnover day is calculated by dividing the average balance of inventories by
cost of revenue for the relevant period multiplied by the number of days during the period.
Average balance equals the sum of the beginning balance and ending balance for the period
divided by two.
As of April 30, 2023, we had utilized US$29.1 million, or 100%, of our inventories as of
December 31, 2022.
Investment properties
Our investment properties primarily consist of buildings and warehouses that we hold and lease
to certain third parties including certain SEA entities before we acquired them in 2021.
Our investment properties decreased from US$53.1 million as of December 31, 2020 to US$0.7
million as of December 31, 2021. In 2021, all investment properties that were used and leased
to SEA entities properties, plant and equipment after our acquisition of the SEA entities,
pursuant to which leasees of these reclassified properties became our subsidiaries. We
continued to lease our spare building and warehouses we owned in Indonesia to certain third
parties. Our investment properties amounted to US$0.5 million as of December 31, 2022.
– 302 –
Property, plant and equipment
As of December 31,
2020 2021 2022
(in US$ thousands)
Logistics equipment . . . . . . . . . . . . . . . . . . . . . . . 60,137 425,576 471,066

Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,492 292,170 280,810
Construction in progress . . . . . . . . . . . . . . . . . . . . 36,406 208,457 88,879
Office equipment . . . . . . . . . . . . . . . . . . . . . . . . 33,158 53,672 61,385
Land, Building and warehouses . . . . . . . . . . . . . . . . 15,320 69,066 113,224
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,519 58,623 37,520
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303,032 1,107,564 1,052,884
Our property, plant and equipment further increased by 265.5% from US$303.0 million as of
December 31, 2020 to US$1,107.6 million as of December 31, 2021, primarily due to (i) an
increase in the value of logistic equipment from US$60.1 million as of December 31, 2020 to
US$425.6 million as of December 31, 2021, (ii) an increase in vehicle from US$144.5 million
as of December 31, 2020 to US$292.2 million as of December 31, 2021, and (iii) an increase
in construction in progress from US$36.4 million as of December 31, 2020 to US$208.5
million as of December 31, 2021, which were primarily due to our investment in sorting centers
to support the expansion of our network and our consolidation of the financial position of
BEST Express China since December 8, 2021.
Our property, plant and equipment was US$1,107.6 million as of December 31, 2021 and
US$1,052.9 million as of December 31, 2022, primarily attributable to an increase in logistic
equipment, as well as land, building warehouse to support our business expansion, partially
offset by a decrease in construction in progress reflecting the completion of certain
construction and renovation projects.
In 2021 and 2022, subsequent to the acquisition and integration of BEST Express China, we
identified certain sorting centers which would be closed upon the termination of relevant lease
and correspondingly recorded impairment losses of US$250.3 million and US$219.1 million in
the years ended December 31, 2021 and 2022, respectively.
Right-of-use assets
We lease various offices, warehouses, vehicles on a wide range of lease terms and conditions.
The following table sets forth our right-of-use assets as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Buildings and warehouses . . . . . . . . . . . . . . . . . . . 182,789 578,085 460,258

Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,117 10,099 11,320
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 682 3,138 2,471
Equipment and others . . . . . . . . . . . . . . . . . . . . . . 174 12,890 7,158
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,762 604,212 481,207
– 303 –
Our right-of-use assets increased by 223.5% from US$186.8 million as of December 31, 2020
to US$604.2 million as of December 31, 2021, primarily due to an increase in right-of-use
assets related to buildings and warehouses from US$182.8 million as of December 31, 2020 to
US$578.1 million as of December 31, 2021 attributable to (i) new lease agreements we entered
into in 2021 to expand our existing facilities and support our expansion, and (ii) the lease we
assumed in connection with our acquisition of BEST Express China.
Our right-of-use assets decreased by 20.4% from US$604.2 million as of December 31, 2021
to US$481.2 million as of December 31, 2022, primarily due to a decrease in our right-of-use
assets related to buildings and warehouses as we optimized our operation after we fully
integrated BEST Express China and adjusted our network density by removing certain
redundant facilities.
Intangible assets
Our intangible assets primarily consist of goodwill, customer relationship and others including
software and trademarks and licenses.
Our intangible assets increased significantly from US$6.0 million as of December 31, 2020 to
US$1,129.2 million as of December 31, 2021, primarily due to the increased goodwill we
recorded in relation to the acquisition of BEST Express China. Our intangible assets decreased
from US$1,129.2 million as of December 31, 2021 to US$963.6 million as of December 31,
2022, primarily due to (i) an one-off impairment of goodwill in 2022, and (ii) fluctuations in
foreign currency exchange rates.
Other non-current assets
Our other non-current assets primarily consist of (i) loans we extended to third parties
(ii) prepayment of construction projects and (iii) deposit receivable.
The following table sets forth our other non-current assets as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Loans to related parties – non-current portion . . . . . . . 167 146,299 –

Loans to third parties – non-current portion . . . . . . . . 58,829 2,127 37,428
Prepayments for constructions . . . . . . . . . . . . . . . . 15,713 13,918 19,778
Deposits receivable . . . . . . . . . . . . . . . . . . . . . . . – 11,370 7,363
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 39
Less: allowance for credit losses . . . . . . . . . . . . . . . (616) (2,584) (1,260)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,093 171,130 63,348
Our other non-current assets increased from US$74.1 million as of December 31, 2020 to
US$171.1 million as of December 31, 2021, primarily due to an increase in loans to related
parties from US$0.2 million as of December 31, 2020 to US$146.3 million as of December 31,
2021, partially offset by a decrease in loans to third parties from US$58.8 million as of
December 31, 2020 to US$2.1 million as of December 31, 2021 due to the repayment of the
loan by the third party and the acquisition of SEA entities in 2021.
– 304 –
Our other non-current assets decreased by 63.0% from US$171.1 million as of December 31,
2021 to US$63.3 million as of December 31, 2022, primarily due to decrease in loan to one
related party from US$146.3 million as of December 31, 2021 to nil as of December 31, 2022,
partially offset by the increased loans to third parties from US$2.1 million as of December 31,
2021 to US$37.4 million as of December 31, 2022.
Financial assets at fair value through profit or loss
We had financial assets at fair value through profit or loss of US$71.3 million, US$41.6 million
and US$497.5 million as of December 31, 2020, 2021 and 2022, respectively.
Our financial assets at fair value through profit or loss consisted of (i) investments in
convertible bonds of Huisen Global and another [REDACTED] investee, and (ii) bank wealth
management products.
The wealth management products classified as other financial assets mainly include short-term
wealth management products issued by major and reputable commercial banks without
guaranteed returns. We manage and evaluate the performance of investments on a fair value
basis in accordance with our risk management and investment strategy. The fair values of part
of the bank wealth management products are based on cash flow discounted using the expected
return based on observable market inputs and are within level 2 of the fair value hierarchy. To
enhance our liquidity position without significantly increasing our exposure to the financial
risks, we will continue to invest in such wealth management products after the [REDACTED].
Our financial assets measured at fair value through profit or loss as of December 31, 2022 also
included our investment in certain [REDACTED] equity and debt instrument, primarily
consisting of our investment in convertible bonds issued by Huisen Global, an exempted
company incorporated in the Cayman Islands with limited liability, engages in domestic freight
less-than-truckload deliveries through its PRC subsidiaries. We have dedicated personnel in
place who are responsible for identifying, reviewing and pursuing strategic investments,
including investments in [REDACTED] companies. These personnel have extensive
experience in corporate finance and M&A in the logistics industry. We make investment
decisions on a case-by-case basis based on the consideration of a number of factors, including
the investee’s operating history, the growth potential of the investee and the industries in which
it operates, the quality of the investee’s management team, as well as the investee’s potential
to generate synergies with our existing operations. We closely monitor the operational and
financial performance of our investee companies.
For more information about valuation of financial assets measured at fair value through profit
or loss, See Note 24 to the Accountant’s Report in Appendix I to this document.
Liabilities
Trade payables
Our trade payables represent payables to our suppliers such as line-haul services and labor
services providers. Our trade payables are recognized initially at fair value and subsequently
measured at amortized cost using the effective interest method.
– 305 –
Our trade payables increased from US$225.5 million as of December 31, 2020 to US$577.1
million as of December 31, 2021, primarily attributable to (i) the growth of our business and
operations, and (ii) our consolidation of the financial position of BEST Express China. Our
trade payables decreased to US$484.2 million as of December 31, 2022, as we settled certain
payables that we consolidated into our liabilities after we integrated BEST Express China.
The following table sets forth an aging analysis of our trade payables, based on invoice or
issuance date, as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Trade payables
Within 3 months . . . . . . . . . . . . . . . . . . . . . . . . . 212,619 505,960 434,660
3 to 6 months. . . . . . . . . . . . . . . . . . . . . . . . . . . 9,028 19,200 26,512
6 to 9 months. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,253 28,286 14,360
9 to 12 months . . . . . . . . . . . . . . . . . . . . . . . . . . 1,891 22,903 5,103
Above 12 months . . . . . . . . . . . . . . . . . . . . . . . . 661 716 3,580
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,452 577,065 484,215
The following table sets forth the turnover days of our trade payables for the periods indicated:

2020 2021 2022
Trade payables turnover days(1) . . . . . . . . . . . . . . . . 25.5 27.1 25.7
Note:
(1) Calculated by dividing the average balance of trade payable by cost of revenue for the relevant period
multiplied by the number of days during the period. Average balance equals the sum of the beginning balance
and ending balance for the period divided by two.
Our trade payables turnover days increased from 25.5 in 2020 to 27.1 in 2021, primarily
because our average trade payables increased significantly. This increase was primarily due to
the trade payables that we consolidated from the financial position of BEST Express China as
a result of the acquisition. For our operations in China, we generally settle our trade payables
within 30 days. Outside China, we generally settle our trade payables from 30 to 60 days. Our
trade payables turnover days decreased from 27.1 in 2021 to 25.7 in 2022, primarily due to the
decreased balance of trade payables as of December 31, 2022.
As of April 30, 2023, we had settled US$351.0 million or 72.5% of our trade payables
outstanding as of December 31, 2022.
– 306 –
Advances from customers
Advances from customers mainly represent advances from network partners in China for
express delivery services to mitigate potential credit risk. The following table sets forth our
advances from customers as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Advances from customers for express delivery

services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,224 291,362 209,925
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,224 291,362 209,925
Our advances from customers increased from US$137.2 million as of December 31, 2020 to
US$291.4 million as of December 31, 2021, primarily due to (i) the expansion of our network,
and (ii) our consolidation of the financial position of BEST Express China. Our advances from
customers further decreased to US$209.9 million as of December 31, 2022, primarily due to
(i) a decrease in the number of our network partners as we optimized our network and (ii) a
decrease in the average amount of advance per time from network partners corresponding with
an increase in the frequency of their advance payments.
Accruals and other payables
Our accruals and other payables primarily consist of (i) cash on delivery related payables, (ii)
salary and welfare payables, (iii) deposits, (iv) tax payables, (v) payables for purchase of
long-term assets, (vi) consideration payable for repurchase of ordinary shares and preferred
shares, (vii) consideration received pursuant to share incentive scheme, primarily from eligible
network partners who were granted share incentive awards and (viii) others.
The following table sets forth our accruals and other payables as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Cash on delivery related payables . . . . . . . . . . . . . . 137,017 95,047 156,666

Salary and welfare payables . . . . . . . . . . . . . . . . . . 62,336 219,607 163,637
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,928 192,734 175,229
Tax payables . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,284 48,830 40,999
Payables for purchase of long-term assets . . . . . . . . . 5,644 110,710 88,587
Consideration payable for repurchase of ordinary shares
and preferred shares . . . . . . . . . . . . . . . . . . . . . – 159,922 –
Consideration received pursuant to share incentive
schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 37,886
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,153 88,502 113,374
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,362 915,352 776,378
– 307 –
Our accruals and other payables increased by 200.7% from US$304.4 million as of December
31, 2020 to US$915.4 million as of December 31, 2021, primarily due to (i) outstanding
payables of US$159.9 million as consideration for certain ordinary shares and preferred shares
to be repurchased, (ii) an increase in deposits from US$25.9 million as of December 31, 2020
to US$192.7 million as of December 31, 2021, which represented deposits paid by network
partners, and partially offset by a decrease in cash of delivery related payables from US$137.0
million as of December 31, 2020 to US$95.0 million as of December 31, 2021 as we optimized
our settlement procedure and shortened settlement cycle with major e-commerce customers in
2021.
Our accruals and other payables decreased by 15.2% from US$915.4 million as of December
31, 2021 to US$776.4 million as of December 31, 2022, primarily due to (i) a decrease in salary
and welfare payables from US$219.6 million as of December 31, 2021 to US$163.6 million as
of December 31, 2022 driven by decreased compensations to staff, and (ii) a decrease in
consideration payable for repurchase of ordinary shares and preferred shares from US$159.9
million as of December 31, 2021 to US$0 as of December 31, 2022 as we completed the
repurchase and settled the amount, partially offset by an increase in cash on delivery related
payables from US$95.0 million as of December 31, 2021 to US$156.7 million as of December
31, 2022 driven by the growth of our (i) cash on delivery services in Southeast Asia, in line
with the increased parcel volume in Southeast Asia, and (ii) an increase in consideration
received pursuant to share incentives schemes.
As of April 30, 2023, we had settled US$343.6 million, or 44.3%, of our accruals and other
payables outstanding as of December 31, 2022.
INDEBTEDNESS
Borrowings
The following table sets forth our indebtedness as of the dates indicated:
As of December 31, As of April 30,

2020 2021 2022 2023
(in US$ thousands)
(unaudited)
Borrowings from financial

institutions . . . . . . . . . . . . . . . . . 10,808 62,739 1,095,377 1,134,730
Borrowings from related parties . . . . . 167,620 14,470 – –
Borrowings from third parties . . . . . . 265,632 11,818 3,000 7,600
Total borrowings . . . . . . . . . . . . . . 444,060 89,027 1,098,377 1,142,330
Borrowings from financial institutions
Our borrowings from financial institutions primarily include borrowing from banks and other
financial institutions. During the Track Record Period, our borrowings from financial
institutions were substantially secured, supported by guarantees and debentures including but
not limited to our equity interest in certain Group entities, certain receivables, bank accounts
and other assets. Our outstanding borrowings from financial institutions amounted to US$10.8
million, US$62.7 million, and US$1,095.4 million as of December 31, 2020, 2021 and 2022,
respectively. Our outstanding borrowings from financial institutions as of December 31, 2022
primarily comprised of (i) the 5.75% guaranteed senior notes due 2025 issued by Winner Star
in February 2022, in an aggregate principal amount of US$870 million, (ii) a loan of US$130
million on February 24, 2022 under a financing agreement with Winner Star for general
corporate and working capital purposes, and (iii) our other borrowings in relation to vehicles
and other normal operations. These borrowings were guaranteed by us and certain subsidiaries
of ours. Our borrowings from financial institutions were US$1,134.73 million as of April 30,
2023.
– 308 –
Borrowings from third parties
In 2020, we had an interest-free borrowing of US$236.9 million provided by one of our

shareholders but subsequently settled in 2021. For details, please see Note 28 to the
Accountant’s Report in Appendix I to this document. During the Track Record Period, our
borrowings from third parties represented interest-bearing borrowings provided by the
minority shareholders of certain Group entities, which had terms from one month to 5 years,
with an interest rate up to 6%. Our borrowings from third parties amounted to US$265.6
million, US$11.8 million and US$3.0 million as of December 31, 2020, 2021 and 2022,
respectively. We had borrowings from third parties of US$7.6 million as of April 30, 2023. Our
borrowings from third parties were unsecured as of December 31, 2020, 2021 and 2022 and
April 30, 2023.
Our Directors confirm that there was no delay or default in the repayment of borrowings during
the Track Record Period. Our Directors also confirm that they are not aware of any breach of
any of the covenants contained in our bank loan arrangements and other borrowing
arrangements or any event of default during the Track Record Period and up to the Latest
Practicable Date, nor are they aware of any restrictions that will limit our ability to draw down
on our unutilized facilities.
Borrowings from related parties
Our borrowings from related parties were US$167.6 million, US$14.4 million, nil and nil as
of December 31, 2020, 2021 and 2022 and April 30, 2023, respectively. Our borrowings from
related parties were unsecured.
Lease Liabilities
Our lease liabilities primarily arose from lease contracts for office premises and sorting
centers, and vehicles used in our operations. The following table sets forth our lease liabilities
as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Lease liabilities
Current lease liabilities . . . . . . . . . . . . . . . . . . . . . 63,639 207,490 151,195
Non-current lease liabilities . . . . . . . . . . . . . . . . . . 111,378 391,232 341,471
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,017 598,722 492,666
Our total lease liabilities were US$175.0 million, US$598.7 million, US$492.7 million and
US$564.2 million as of December 31, 2020, 2021, 2022 and April 30, 2023, respectively. The
increase in our lease liabilities from US$175.0 million in 2020 to US$598.7 million in 2021
was attributable to (i) new lease contracts we entered into as our business expanded and (ii) our
consolidation of the financial position of BEST Express China as a result of the acquisition.
The decrease in our lease liabilities from December 31, 2021 to December 2022 was primarily
due to a decrease in our buildings and warehouses leases as we optimized our operations after
fully integrating BEST Express China and adjusted our network sorting center density by
removing certain redundant sorting centers.
– 309 –
Financial Liabilities at Fair Value through Profit or Loss
Since our commencement, we have completed several rounds of financing by issuing different
classes of preferred shares. Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares and
Series A Preferred Shares were issued in or prior to 2020 and initially recognized as equity. In
late 2020, along with the issuance of Series B Preferred Shares, we updated our memorandum
of association, and subsequently, reclassified Series Pre-A1 Preferred Shares, Series Pre-A2
Preferred Shares and Series A Preferred Shares as financial liabilities measured at fair value
through profit or loss, with subsequent changes in fair value recognized in the consolidated
income statements. We also designated Series B Preferred Shares, Series B+ Preferred Shares,
Series C1 Preferred Shares and Series C2 Preferred Shares as financial liabilities at fair value
through profit or loss and initially recognized them at fair value, with subsequent changes in
fair value recognized in the consolidated income statements. In 2021, Jet Global, the holding
company of our operations in the New Markets, entered into agreements with third-party
investors to raise Series A financing. We also recognized the Series A Preferred Shares of Jet
Global as financial liabilities at fair value through profit or loss with subsequent changes in fair
value recognized in the consolidated income statements. On December 31, 2021,
accompanying the issuance of the Series C2 Preferred Shares, we entered into agreements with
certain existing shareholders to repurchase a total of 48,607,928 preferred shares and Ordinary
Shares. The expected excess of the repurchase price over the fair value of these preferred
shares and Ordinary Shares was also recognized as financial liabilities at fair value through
profit or loss.
With the assistance from an external valuer, we applied the discounted cash flow method to
determine the underlying equity value of the Group and adopted option-pricing method and
equity allocation model to determine the fair value of the preferred shares. See Note 29A to the
Accountant’s Report in Appendix I to this document for the detailed movements of financial
liabilities at fair value through profit or loss. As of December 31, 2020, 2021, 2022 and April
30, 2023, we had financial liabilities at fair value through profit or loss of US$1,812.9 million,
US$10,487.3 million, US$7,765.1 million and US$7,551.5 million, respectively. See Note 29A
to the Accountant’s Report in Appendix I to this document for the key assumptions in
determining the fair value of the preferred shares.
No Other Outstanding Indebtedness
Save as disclosed in this “– Indebtedness” in this section, we did not have outstanding
indebtedness or any loan capital issued and outstanding or agreed to be issued, bank overdrafts,
loans or similar indebtedness, liabilities under acceptances (other than normal trade bills),
acceptance credits, debentures, mortgages, charges, finance leases or hire purchase
commitments, guarantees or other contingent liabilities or any covenant in connection
therewith as of April 30, 2023, being the indebtedness statement date.
– 310 –
LIQUIDITY AND CAPITAL RESOURCES
Net Current Assets/(Liabilities)
The following table sets forth our current assets and current liabilities as of the dates indicated:
As of December 31, As of April 30,

2020 2021 2022 2023
(in US$ thousands)
(Unaudited)
Current assets
Inventories . . . . . . . . . . . . . . . . . . . 15,954 29,359 29,120 19,582
Trade receivables . . . . . . . . . . . . . . . 180,760 334,876 513,954 564,129
Prepayments, other receivables and
other assets. . . . . . . . . . . . . . . . . . 745,363 882,190 703,010 798,157
Financial assets at fair value through
profit or loss . . . . . . . . . . . . . . . . . 71,324 41,581 16,440 20,938
Restricted cash . . . . . . . . . . . . . . . . . 928 125,970 79,725 57,766
Cash and cash equivalents . . . . . . . . . . 600,425 2,102,448 1,504,048 1,236,334
Total current assets . . . . . . . . . . . . . 1,614,754 3,516,424 2,846,297 2,696,906
Current liabilities
Trade payables . . . . . . . . . . . . . . . . . 225,452 577,065 484,215 418,058
Advances from customers . . . . . . . . . . 137,224 291,362 209,925 209,876
Accruals and other payables . . . . . . . . . 304,362 915,352 776,378 877,058
Lease liabilities . . . . . . . . . . . . . . . . 63,639 207,490 151,195 191,675
Current income tax liabilities . . . . . . . . 9,200 20,756 32,434 27,768
Borrowings . . . . . . . . . . . . . . . . . . . 407,143 59,965 77,480 112,282
Financial liabilities – ordinary share
redemption liabilities . . . . . . . . . . . . – 133,749 – –
Total current liabilities . . . . . . . . . . . 1,147,020 2,205,739 1,731,617 1,836,717
Net current assets . . . . . . . . . . . . . . 467,734 1,310,685 1,114,680 860,189
Our net current assets decreased from US$1,114.7 million as of December 31, 2022 to
US$860.2 million as of April 30, 2023, primarily due to a decrease of US$267.7 million in cash
and cash equivalents in the four months ended April 30, 2023.
Our net current assets decreased from US$1,310.7 million as of December 31, 2021 to
US$1,114.7 million as of December 31, 2022, primarily due to (i) a decrease of US$598.4
million in cash and cash equivalents, and (ii) a decrease of US$179.2 million in prepayments,
other receivables and other assets.
Our net current assets increased from US$467.7 million as of December 31, 2020 to
US$1,310.7 million as of December 31, 2021, primarily due to (i) an increase of US$136.8
million in prepayments, other receivables and other assets, (ii) an increase of US$154.1 million
in trade receivables as our business grew and (iii) an increase of US$1,502.0 million in cash
and cash equivalents. The increases were partially offset by (i) an increase of US$611.0 million
in accruals and other payables because we increased our purchases in line with our expansion
and (ii) an increase of US$351.6 million in trade payables.
– 311 –
We have historically met our working capital and other capital requirements primarily through
capital contributions from shareholders, cash generated from the issuance of convertible
preferred shares and cash generated from our operating activities. We had cash and cash
equivalents of US$600.4 million, US$2,102.4 million, US$1,504.0 million and US$1,236.3
million as of December 31, 2020, 2021 and 2022 and April 30, 2023, respectively.
We believe that our liquidity requirements will be satisfied by a combination of cash generated
from operating activities, the net [REDACTED] received from the [REDACTED], and other
funds raised from the capital markets from time to time. We currently do not have any plans
for material additional external financing.
Cash Flow
The following table sets forth a summary of our cash flows for the periods indicated:

2020 2021 2022
(in US$ thousands)
Net cash used in operating activities. . . . . . . . . . . . . (154,700) (967,174) (519,817)

Net cash used in investing activities . . . . . . . . . . . . . (635,086) (1,001,006) (859,757)
Net cash from financing activities . . . . . . . . . . . . . . 1,285,166 3,469,507 881,328
Net (decrease)/increase in cash and
cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . 495,380 1,501,327 (498,246)
Cash and cash equivalents at the beginning
of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,173 600,425 2,102,448
on cash and cash equivalents . . . . . . . . . . . . . . . . 7,872 696 (100,154)
Cash and cash equivalents at the end of the year . . . 600,425 2,102,448 1,504,048
Working capital sufficient
Taking into account the financial resources available to us, including our cash and cash
equivalents on hand, our available financing facilities and the estimated net [REDACTED]
from the [REDACTED], our Directors are of the view that we have sufficient working capital
to meet our present requirements and for at least the next 12 months from the date of this
document.
Net cash used in operating activities
attributable to our profit before income tax of US$1,583.3 million in 2022, adjusted by adding
back non-cash items including (i) share-based compensation of US$346.6 million, (ii)
depreciation of right-of-use assets and depreciation of property, plant and equipment of
US$257.2 million and US$227.9 million, respectively, incurred in relation to the optimization
of operation and adjustment of network, (iii) impairment losses on long-term assets of
US$219.1 million, (iv) fair value change of financial assets and liabilities at fair value through
profits or loss of US$3,050.7 million, (v) net loss on disposal of property, plant and equipment
of US$1.9 million, and (vi) impairment losses on financial assets of US$37.2 million, partially
offset by items including finance cost of US$99.5 million and foreign exchange losses of
US$17.3 million. The amount was further adjusted by changes in working capital, which
primarily comprised of (i) an increase in trade receivables of US$191.1 million, (ii) a decrease
– 312 –
in trade payables of US$84.7 million, (iii) a decrease in advances from customers of US$73.6
million, and (iv) an increase in prepayments, other receivables, and other assets of US$42.2
million, offset by (i) an increase in accruals and other payables of US$118.2 million, and (ii)
return of restricted cash of US$45.8 million.
attributable to our loss before income tax of US$6,119.1 million in 2021, adjusted by adding
back non-cash items including (i) fair value changes on convertible preferred shares of
US$4,383.5 million, (ii) share-based compensation of US$619.0 million driven by the increase
in the number of employees to support the our global expansion, (iii) depreciation of
right-of-use assets of US$113.9 million, (iv) depreciation of property, plant and equipment of
US$104.4 million, and (v) impairment losses on long-term assets of US$250.3 million,
partially offset by items including other income of US$82.5 million and foreign exchange gain
of US$19.9 million. The amount was further adjusted by changes in working capital, which
primarily comprised (i) a decrease in trade payables of US$305.4 million, (ii) an increase in
prepayments, other receivables and other assets of US$105.5 million, (iii) an increase in
inventories of US$8.6 million, and (iv) an increase in trade receivables of US$4.3 million,
offset by (i) an increase in accruals and other payables of US$128.3 million, and (ii) an
increase in advances from customers of US$62.8 million.
In 2020, our net cash used in operating activities was US$117.5 million, reflecting our loss
before income tax of US$618.6 million, adjusted by non-cash items including (i) share-based
compensation of US$188.3 million driven by the increase in the number of employees to
support the our global expansion, (ii) depreciation of right-of-use assets of US$56.0 million,
and (iii) depreciation of property, plant and equipment of US$39.3 million, offset by the
foreign exchange gains of US$29.4 million. The amount was further adjusted by changes in
working capital, which primarily comprised (i) an increase in prepayments, other receivables
and other assets of US$203.9 million, (ii) an increase in trade receivables of US$128.1 million,
and (iii) an increase in inventories of US$9.9 million, offset by (i) an increase in accruals and
other payables of US$324.1 million, (ii) an increase in trade payables of US$189.5 million, and
(iii) an increase in advances from customers of US$68.8 million.
Net cash used in investing activities
In 2022, our net cash used in investing activities was US$859.8 million, which was primarily
attributable to (i) purchase of financial assets at fair value through profit or loss of US$998.4
million, (ii) loans to a related party of US$320.0 million, which was subsequently repaid within
the year, (iii) purchase of property, plant and equipment of US$573.2 million, and (iv) loans
to third parties of US$38.4 million, partially offset by (i) collection of loans to related parties
and interests received of US$516.0 million, (ii) redemption of financial assets at fair value
through profit or loss of US$507.4 million, and (iii) proceeds from disposal of property, plant
and equipment of US$32.0 million.
In 2021, our net cash used in investing activities was US$1,001.0 million, which was primarily
attributable to (i) purchase of financial assets at fair value through profit or loss of US$1,149.1
million, (ii) net payment for acquisitions including the acquisition of BEST Express China of
US$608.7 million, (iii) purchase of property, plant and equipment of US$513.7 million, (iv)
loans to third parties of US$272.4 million, and (v) loans to related parties of US$128.2 million,
partially offset by (i) redemption of financial assets at fair value through profit or loss of
US$1,184.4 million, and (ii) repayment of loans by third parties and interest received of
US$465.7 million.
– 313 –
In 2020, our net cash used in investing activities were US$635.1 million, which was primarily
attributable to (i) purchase of financial assets at fair value through profit or loss of US$306.8
million, (ii) loans to third parties of US$628.5 million, and (iii) purchase of property, plant and
equipment of US$257.7 million, partially offset by (i) the repayment of loans by third parties
of US$376.5 million, and (ii) redemption of financial assets at fair value through profit or loss
of US$243.4 million.
Net cash from financing activities
In 2022, our net cash from financing activities was US$881.3 million, which was primarily
attributable to (i) proceeds from borrowing of US$1,099.3 million, (ii) net proceeds from
issuance of preferred shares of US$219.0 million, and (iii) net proceeds from issuance of shares
to network partners of US$44.6 million, offset by (i) principal elements of lease payments of
US$262.7 million, (ii) repayment of borrowings of US$105.7 million, (iii) interest payment for
borrowings of US$38.8 million, (iv) interest payment of lease payment of US$37.3 million,
and (v) dividends payments of US$28.6 million.
In 2021, our net cash from financing activities was US$3,469.5 million, which was primarily
attributable to (i) net proceeds from the issuance of preferred shares of US$3,966.1 million,
and (ii) proceeds from borrowing of US$215.2 million, partially offset by (i) repayment of
borrowings of US$610.2 million, (ii) dividends paid of US$120.8 million, and (iii) payment of
principals of leases of US$101.7 million.
In 2020, our net cash generated from financing activities was US$1,285.2 million, primarily
attributable to (i) net proceeds from the issuance of ordinary shares and convertible preferred
shares of US$977.2 million, and (ii) proceeds from borrowings of US$400.9 million, partially
offset by repayment of borrowings of US$137.8 million.
CAPITAL EXPENDITURES
Our capital expenditures consist of our investment in (i) property and equipment, and (ii) other
intangible asset, right of use assets and, particularly for the year ended December 31, 2021,
other long-term assets acquired pursuant to the BEST China Express Acquisition. Our total
capital expenditures in 2020, 2021 and 2022 amounted to US$263.0 million, US$520.2 million
and US$580.7 million, respectively.
The following table sets forth our capital expenditures for the periods indicated:

2020 2021 2022
(in US$ thousands)
Purchase of property, plant and equipment . . . . . . . . . 257,742 513,675 573,226

Purchases of investment properties. . . . . . . . . . . . . . 1,678 513 –
Purchases of intangible assets . . . . . . . . . . . . . . . . . 3,570 6,036 7,451
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262,990 520,224 580,677
– 314 –
Other than certain expenses in relating to long-term assets we acquired pursuant to the
acquisition of BEST Express China, our capital expenditures from 2020 to 2022 are primarily
related to the expansion of our network and investment in our equipment and facilities. Our
capital expenditures were primarily funded by our cash and cash equivalents and cash flows
from our operating activities and financing activities, including the issuance of convertible
preferred shares.
We plan to fund our planned capital expenditures with (i) our existing cash and cash
equivalents; (ii) cash flow generated from our operating activities; (iii) [REDACTED] from
the [REDACTED]; and (iv) other sources of external financings. For more details, see
“Business – Our Strategies” and “Future Plans and Use of [REDACTED].” We will continue
to make capital expenditures to support the growth of our business. We may reallocate the fund
to be utilized on capital expenditure based on our ongoing business needs.
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
Our commitments primarily comprise capital commitments and operating lease commitments.
Capital Commitments
Our capital commitments during the Track Record Period were primarily relating to our
investment in equipment, facilities significant capital expenditures contracted for at the end of
the reporting period but not recognized as liabilities as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Right-of-use asset – land in the PRC . . . . . . . . . . . . – 22,052 11,659
Short-term Lease Commitments
We lease certain warehouses and vehicles under non-cancellable short-term lease agreements.
The lease terms are less than one year. We record all leases with contract terms of over one year
under lease liabilities and right-of-use assets.
The following table sets forth our future aggregate minimum lease payments under non-
cancellable operating leases as of the dates indicated:
As of December 31,
2020 2021 2022
(in US$ thousands)
Within one year . . . . . . . . . . . . . . . . . . . . . . . . . 9,675 22,575 41,733
– 315 –
RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and
operational decisions. Parties are also considered to be related if they are subjected to common
control. Members of our key management and their close family members are also considered
as related parties. During the Track Record Period, we entered into transactions with our
related parties from time to time. We expect to settle the remaining outstanding non-trade
balance with related parties prior to the [REDACTED]. For a detailed discussion of related
party transactions during the Track Record Period, see Note 39 to the Accountant’s Report in
Appendix I to this document.
Our Directors believe that the related party transactions were carried out on an arm’s length
basis and will not distort our results during the Track Record Period or make such results not
reflective of our future performance.
CONTINGENT LIABILITIES
As of December 31, 2020, 2021 and 2022, we did not have any material contingent liabilities.
OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENTS
As of the Latest Practicable Date, we had not entered into any off-balance sheet commitments
or arrangements.
KEY FINANCIAL RATIOS
The following table sets forth certain of our key financial ratios for the periods indicated:

2020 2021 2022
Revenue growth (%) . . . . . . . . . . . . . . . . . . . . . . 357.7 216.0 49.8

Gross profit/(loss) margin (%)(1) . . . . . . . . . . . . . . . (17.0) (11.2) (3.7)
Adjusted EBITDA margin (%)(2) . . . . . . . . . . . . . . . (20.9) (10.9) (2.8)
Notes:
(1) Gross margin represents gross profit/(loss) for the period divided by revenue for the period and multiplied by
100%.
(2) Adjusted EBITDA margin represents adjusted EBITDA for the period divided by total revenue of such period
and multiplied by 100%. For details of the adjusted EBITDA, see “– Non-IFRS Measures” in this section.
QUALITATIVE AND QUANTITATIVE DISCLOSURE ABOUT MARKET RISKS
We are exposed to various types of financial risks, including market risk, foreign exchange
risk, credit risk and liquidity risk.
– 316 –
Market Risk
Foreign exchange risk
Our subsidiaries and consolidated affiliated entities primarily operate in China, Indonesia,
Vietnam, Malaysia, the Philippines, Thailand and other countries. Their transactions were
generally settled in local currencies. Our foreign exchange risk primarily arises from
recognized assets and liabilities in our subsidiaries and consolidated affiliated entities from
those countries, when we receive foreign currencies from or pay foreign currencies to overseas
business partners. For a more detailed discussion of our foreign exchange risk in relation to
various countries where we operate, see Note 3 to the Accountant’s Report in Appendix I to this
document and “Risk Factors – Risks Related to Our Business and Industry – Fluctuations in
exchange rates could adversely affect our financial condition, results of operations and cash
flows.”
Interest rate risk
Interest rate risk primarily arises from borrowings, loans to third parties, and cash and cash
equivalents. Those carried at floating rates expose us to cash flow interest rate risk whereas
those carried at fixed rates expose us to fair value interest rate risk. We regularly monitor our
interest rate risk to ensure there is no undue exposure to significant interest rate movements.
We had limited cash flow interest rate risk as of December 31, 2020, 2021 and 2022, as
substantially all the borrowings and loans to third parties were carried at fixed interest rates.
Credit Risk
Credit risk arises from cash and cash equivalents, trade receivables, contract assets, restricted
cash and financial assets measured at fair value through profit or loss or included in other
receivables and other assets.
We manage risk arising from cash and cash equivalents, restricted cash and financial assets
measured at fair value through profit or loss by only conducting transacts with state-owned or
reputable financial institutions, which have no recent history of default.
We manage risk arising from trade receivables, contract assets and financial assets included in
other receivables and other assets by only conducting transactions only with recognized and
creditworthy third parties, or with other customers who passed our creditability assessment. We
require all customers who wish to trade on credit terms or carry out other transactions to be
subject to certain creditability assessments.
Liquidity Risk
We intend to maintain sufficient cash and cash equivalents. Due to the dynamic nature of our
underlying businesses, we regularly monitor our liquidity risk and maintain adequate cash and
cash equivalents, short-term and long-term time deposits and investments in wealth
management products or adjust financial arrangements to meet our liquidity requirements.
See Note 3.1(c) to the Accountant’s Report in Appendix I to this document for the liquidity risk
to which we are exposed.
– 317 –
WORKING CAPITAL CONFIRMATION
Taking into account the financial resources available to us, including our cash and cash
equivalents on hand, our available financing facilities and the estimated net [REDACTED]
from the [REDACTED], our Directors are of the view that we have sufficient working capital
to meet our present requirements and for at least the next twelve months from the date of this
document. Our Directors confirm that we had no material defaults in payment of trade and
non-trade payables during the Track Record Period.
DIVIDEND
We are a holding company incorporated under the laws of the Cayman Islands. As a result, the
payment and amount of any future dividend will also depend on the availability of dividends
received from our subsidiaries.
In August, 2021, the board of directors declared a cash dividend of US12.0 cent per share, to
be paid to shareholders, including holders of preferred shares, of record as of the close of
business on August 31, 2021. Such dividend was fully settled by cash in November 2021. For
more details, see Note 43 to the Accountant’s Report in Appendix I to this document. We do
not have any dividend policy and have no present plan to pay any dividends to our shareholders
in the foreseeable future. However, we may distribute dividends in the future by way of cash
or by other means that we consider appropriate. A decision to declare and pay any dividends
would require the approval of the Board and will be at their discretion. As advised by our legal
adviser on the laws of the Cayman Islands, Harney Westwood & Riegels, a position of
accumulated losses does not necessarily restrict us from declaring and paying dividends to our
shareholders out of either our profit or our share premium account, provided this would not
result in our Company being unable to pay its debts as they fall due in the ordinary course of
business.
[REDACTED]
Based on the mid-point [REDACTED] of HK$[REDACTED], the total estimated

[REDACTED] in relation to the [REDACTED] is approximately HK$[REDACTED] million,
assuming the [REDACTED] is not exercised and the Reclassification, Redesignation and
Share Subdivision are completed. The total estimated [REDACTED] will represent
approximately [REDACTED]% of the total [REDACTED] from the [REDACTED] of
approximately HK$[REDACTED] billion assuming that [REDACTED] is not exercised.
US$[REDACTED] million of the [REDACTED] expenses was charged to our consolidated
income statement for the year ended December 31, 2022. We estimate that the total
[REDACTED] for the year of 2023 in the amount of US$[REDACTED] million will be
charged to our consolidated income statement for the year ending December 31, 2023. The
balance of approximately US$[REDACTED] million, which mainly includes [REDACTED],
is expected to be accounted for as a deduction from equity upon the completion of the
[REDACTED]. These [REDACTED] mainly comprise professional fees paid and payable to
the professional parties for their services rendered in relation to the [REDACTED] and the
[REDACTED] and the [REDACTED] the [REDACTED].
– 318 –
[REDACTED]
DISCLOSURE UNDER RULES 13.13 TO 13.19 OF THE LISTING RULES
Our Directors have confirmed that, except as otherwise disclosed in this document, as of the
Latest Practicable Date, there were no circumstances which, had we been required to comply
with Rules 13.13 to 13.19 in Chapter 13 of the Listing Rules, would have given rise to a
disclosure requirement under Rules 13.13 to 13.19 of the Listing Rules.
NO MATERIAL ADVERSE CHANGE
After performing sufficient due diligence work which our Directors consider appropriate and
after due and careful consideration, our Directors confirm that, up to the date of this document,
there has been no material adverse change in our financial or trading position since December
31, 2022, being the end date of the periods reported in the Accountant’s Report in Appendix
I to this document, and there has been no event since December 31, 2022 that would materially
affect the information as set forth in the Accountant’s Report in Appendix I to this document.
– 319 –
FUTURE PLANS AND [REDACTED]
FUTURE PLANS
See “Business – Our Strategies” for a detailed description of our future plans.
USE OF [REDACTED]
After deducting the [REDACTED], commissions and estimated expenses payable by us in

relation to the [REDACTED], we estimate that we will receive net [REDACTED] of:
• approximately HK$[REDACTED] from the [REDACTED], assuming the

[REDACTED] is determined to be HK$[REDACTED] per [REDACTED], being the
high-end of the indicative [REDACTED] range stated in this document;
• approximately HK$[REDACTED], assuming the [REDACTED] is determined to be

HK$[REDACTED] per [REDACTED], being the low-end of the indicative
[REDACTED] range stated in this document; or
• approximately HK$[REDACTED], assuming the [REDACTED] is determined to be

HK$[REDACTED] per [REDACTED], being the mid-point of indicative
[REDACTED] range stated in this document.
Assuming an [REDACTED] at the mid-point of the indicative [REDACTED] range, we

intend to use the net [REDACTED] from the [REDACTED] for the following purposes and
in the amounts set out below, subject to changes in light of our evolving business needs and
changing market conditions:
• approximately [REDACTED]%, or HK$[REDACTED] million, will be used to

expand our logistics networks, improve our infrastructure, and strengthen our
sorting and warehouse capacity and capabilities in Southeast Asia and other existing
markets, including:
o For machinery and equipment upgrade: we plan to increase the number of our
automated sorting machines and equipment, upgrade our hardware and software
with data analytics and AI-enabled intelligent decision making capability at our
sorting centers, to optimize delivery routes and timing and deliver greater estimated
delivery accuracy with real-time visibility, reducing human error and labor costs per
parcel thereby increasing efficiency and optimizing capacity;
o For line-haul network: we plan to further strengthen our line-haul network through
acquiring additional transportation vehicles to expand self-owned fleet, adding
additional line-haul routes and peak network capacity. To enhance our line-haul
transportation efficiency, we will also enhance our line-haul capacities of engaging
select transportation service providers with efficient and premium services; and
o For sorting center and warehouse network expansion: we plan to strategically

acquire land use rights or properties in Southeast Asia and other existing markets,
and enter into lease agreements in certain areas or locations to expand our sorting
center and warehouse network, which we expect will increase our sorting capacity,
shorten distance from sorting centers to outlets and our network partners, lower cost
for us and our network partners, and improve our capabilities to serve a more
extensive network.
– 320 –
• approximately [REDACTED]%, or HK$[REDACTED] million, will be used to

expand in new markets and diverse our service offering, including:
o New Markets and geographical service coverage expansion: we plan to replicate our
success in Southeast Asia and in other carefully selected markets. We plan to further
invest in infrastructure such as sorting centers, line-haul transportation, facilities
and equipment in these markets. We intend to further invest in building pickup and
delivery outlets and capabilities. We will also explore cooperation with network
partners in these areas to acquire the capability of last-mile pickup and first-mile
delivery capacities;
o New service offerings: we plan to invest in the expansion and development of our
business primarily on an organic basis, including expanding our services offerings
in warehousing, transportation, supply chain solutions, etc. We may also consider
selective investment and acquisition opportunities strategically across the logistics
value chain. We will consider various criteria when evaluating the investment and
acquisition targets, including: infrastructure, service capability and quality,
customer base, synergy effect, and reputation of the target; and
o Investment in cross-border services: to leverage our well-developed domestic

logistics network in Southeast Asia and other existing markets and better service our
customers and e-commerce platforms, we plan to make select investment in the
cross-border industry, including but not limited to enhancing our cross-border
network and relationship with logistics service providers.

research and development and technology innovations, including:
o IT system and infrastructure: we plan to continually develop our cloud infrastructure

and system and develop our proprietary JMS/JLS system to cater to our globalized
operations, including adding more customized modules and functions tailored for
different markets and service offerings, for more effective deployment of the system
in new markets we enter into or for new service offering we launch in the future. We
also intend to further develop our integrated technology platform and enhance
functionalities across data management, network management, service quality
management, customer relationship management, transportation management, and
device and materials management, among others. We will develop more applications
and APIs to further improve customer experience and enhance our operational
efficiency;
o Automated sorting: we plan to further develop our automated sorting system and
enhance the connectivity of equipment across sorting centers. We intend to deploy
more AI technologies in our system to increase traceability of the parcels and
improve the accuracy and speed for parcel sortation, in order to further increase
capacity and reliability of our sorting centers and optimize the overall delivery
process;
– 321 –
o AI and data analytics: we plan to further unify the data scattered across our daily
operations through our data management platform and develop more advanced
machine learning and deep learning algorithms. We intend to further improve our
data analytics capabilities based on advanced machine learning in order to
coordinate logistics resources in real time, perform more accurate forecasting of
delivery demands, and optimize delivery routes and allocation of parcels across our
logistics network; we also intend to invest in cloud such as Internet of Things (IoT),
Natural Language Processing (NLP), and computer vision, among others, to employ
AI across our business operations to improve our efficiency and enhance end
customer experience; and
o R&D and IT investment: we plan to invest in our R&D team and in partnership with
other institutions globally for the enhanced technology capabilities, R&D and
technology innovations endeavors.

general corporate purposes and working capital needs.
The above allocation of the net [REDACTED] from the [REDACTED] will be adjusted on a
pro rata basis in the event that the [REDACTED] is fixed at a higher or lower level compared
to the mid-point of the indicative [REDACTED] range stated in this document.
If the [REDACTED] is exercised in full, the net [REDACTED] that we will receive will be
(i) approximately HK$[REDACTED] million, assuming an [REDACTED] of
HK$[REDACTED] per Share (being the high-end of the indicative [REDACTED] range); (ii)
approximately HK$[REDACTED] million, assuming an [REDACTED] of
HK$[REDACTED] per Share (being the low-end of the indicative [REDACTED] range); and
(iii) approximately HK$[REDACTED] million, assuming an [REDACTED] of
HK$[REDACTED] per Share (being the mid-point of the indicative [REDACTED] range). In
the event that the [REDACTED] is exercised in full, we intent to apply the additional net
[REDACTED] to the above purposes in the proportions stated above.
To the extent that the net [REDACTED] of the [REDACTED] are not immediately required
for the above purposes or if we are unable to put into effect any part of our plan as intended,
to the extent permitted by applicable law and regulations and so long as it is deemed to be in
the best interests of the Company, we will hold such funds in short-term interest-bearing
accounts at authorized licensed banks or financial institutions.
We will issue announcements, where required, if there is any material change in the use of
[REDACTED] mentioned above.
– 322 –
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APPENDIX I ACCOUNTANT’S REPORT
The following is the text of a report set out on pages I-1 to I-[2], received from the Company’s
reporting accountant, PricewaterhouseCoopers, Certified Public Accountants, Hong Kong, for
the purpose of incorporation in this document. It is prepared and addressed to the directors of
the Company and to the Joint Sponsors pursuant to the requirements of HKSIR 200,
Accountants’ Reports on Historical Financial Information in Investment Circulars issued by
the Hong Kong Institute of Certified Public Accountants.
[DRAFT]
[letterhead of PricewaterhouseCoopers]
ACCOUNTANT’S REPORT ON HISTORICAL FINANCIAL INFORMATION TO THE

DIRECTORS OF J&T GLOBAL EXPRESS LIMITED AND CHINA INTERNATIONAL
CAPITAL CORPORATION HONG KONG SECURITIES LIMITED, MERRILL LYNCH
(ASIA PACIFIC) LIMITED AND MORGAN STANLEY ASIA LIMITED
Introduction
We report on the historical financial information of J&T Global Express Limited (the
“Company”) and its subsidiaries (together, the “Group”) set out on pages I-[3] to I-[129],
which comprises the consolidated balance sheets as at December 31, 2020, 2021 and 2022, the
company balance sheets as at December 31, 2020, 2021 and 2022, and the consolidated income
statements, the consolidated statements of comprehensive loss, the consolidated statements of
changes in equity and the consolidated statements of cash flows for each of the years ended
December 31, 2020, 2021 and 2022 (the “Track Record Period”) and a summary of significant
accounting policies and other explanatory information (together, the “Historical Financial
Information”). The Historical Financial Information set out on pages I-[3] to I-[129] forms an
integral part of this report, which has been prepared for inclusion in the [REDACTED] of the
Company dated [Date] (the “[REDACTED]”) in connection with the [REDACTED] of shares
of the Company on the Main Board of The Stock Exchange of Hong Kong Limited.
Directors’ responsibility for the Historical Financial Information
The directors of the Company are responsible for the preparation of Historical Financial
Information that gives a true and fair view in accordance with the basis of presentation and
preparation set out in Notes 1.3 and 2.1 to the Historical Financial Information, and for such
internal control as the directors determine is necessary to enable the preparation of Historical
Financial Information that is free from material misstatement, whether due to fraud or error.
Reporting accountant’s responsibility
Our responsibility is to express an opinion on the Historical Financial Information and to report
our opinion to you. We conducted our work in accordance with Hong Kong Standard on
Investment Circular Reporting Engagements 200, Accountants’ Reports on Historical Financial
Information in Investment Circulars issued by the Hong Kong Institute of Certified Public
Accountants (“HKICPA”). This standard requires that we comply with ethical standards and
plan and perform our work to obtain reasonable assurance about whether the Historical
Financial Information is free from material misstatement.
Our work involved performing procedures to obtain evidence about the amounts and
disclosures in the Historical Financial Information. The procedures selected depend on the
reporting accountant’s judgement, including the assessment of risks of material misstatement
of the Historical Financial Information, whether due to fraud or error. In making those risk
– I-1 –
assessments, the reporting accountant considers internal control relevant to the entity’s
preparation of Historical Financial Information that gives a true and fair view in accordance
with the basis of presentation and preparation set out in Notes 1.3 and 2.1 to the Historical
Financial Information in order to design procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Our work also included evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by the directors, as well as evaluating the
overall presentation of the Historical Financial Information.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Opinion
In our opinion, the Historical Financial Information gives, for the purposes of the accountant’s
report, a true and fair view of the financial position of the Company as at December 31, 2020,
2021 and 2022 and the consolidated financial position of the Group as at December 31, 2020,
2021 and 2022 and of its consolidated financial performance and its consolidated cash flows
for the Track Record Period in accordance with the basis of presentation and preparation set
out in Notes 1.3 and 2.1 to the Historical Financial Information.
Report on matters under the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited (the “Listing Rules”) and the Companies (Winding Up
and Miscellaneous Provisions) Ordinance
Adjustments
In preparing the Historical Financial Information, no adjustments to the Underlying Financial

Statements as defined on page I-[3] have been made.
Dividends
We refer to note 43 to the Historical Financial Information which states that contains
information about the dividends paid by J&T Global Express Limited in respect of the Track
Record Period.
No statutory financial statements for the Company
No statutory financial statements have been prepared for the Company since its date of
incorporation.
[PricewaterhouseCoopers]
Certified Public Accountants
Hong Kong
[Date]
– I-2 –
I HISTORICAL FINANCIAL INFORMATION OF THE GROUP
Preparation of Historical Financial Information
Set out below is the Historical Financial Information which forms an integral part of this
accountant’s report.
The consolidated financial statements of the Group for the Track Record Period, on which the
Historical Financial Information is based, were audited by PricewaterhouseCoopers in
accordance with International Standards on Auditing (“ISAs”) issued by the International
Auditing and Assurance Standards Board (“Underlying Financial Statements”).
The Historical Financial Information is presented in United States Dollars (“USD”) and all
amounts are rounded to the nearest thousand (USD’000) except when otherwise stated.
– I-3 –
CONSOLIDATED INCOME STATEMENTS

Note 2020 2021 2022
USD’000 USD’000 USD’000
Revenue 5 1,535,425 4,851,800 7,267,428

Cost of revenue 9 (1,796,913) (5,396,544) (7,537,666)
Gross loss (261,488) (544,744) (270,238)

Selling, general and administrative
expenses 9 (365,869) (1,129,024) (1,095,528)
Research and development expenses 9 (14,129) (41,031) (44,483)
Net impairment losses on financial
assets 11 (9,488) (41,320) (37,219)
Other income 6 17,056 82,542 98,149
Other gains/(losses) – net 7 27,474 26,370 (40,246)
Operating loss (606,444) (1,647,207) (1,389,565)

Finance income 10 1,965 9,476 22,002
Finance costs 10 (13,831) (99,077) (99,499)
Finance costs – net (11,866) (89,601) (77,497)

Fair value change of financial assets
and liabilities at fair value through
profit or loss 24, 29 – (4,383,532) 3,050,694
Share of results of associates (323) 1,208 (302)
(Loss)/Profit before income tax (618,633) (6,119,132) 1,583,330

Income tax expense 12 (45,530) (73,126) (10,763)
(Loss)/Profit for the year (664,163) (6,192,258) 1,572,567
Attributable to:
Owners of the Company (564,836) (6,046,983) 1,656,168
Non-controlling interests (99,327) (145,275) (83,601)
(664,163) (6,192,258) 1,572,567
Earnings/(loss) per share for loss

attributable to owners of
the Company:
Basic (loss)/earnings per share
(USD cent) 13 (94.8) (1,175.6) 274.0
Diluted (loss)/earnings per share

(USD cent) 13 (94.8) (1,175.6) (117.4)
– I-4 –
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Note 2020 2021 2022
USD’000 USD’000 USD’000

Other comprehensive loss
Item that may be reclassified
subsequently to profit or loss
Currency translation differences (12,479) (15,364) (251,954)
Item that may not be reclassified
subsequently to profit or loss
Fair value changes of financial
liabilities at fair value through
profit or loss relating to the
Group’s credit risk 27 – (24,874) 9,875
Others (352) 953 1,279
Other comprehensive loss for

the year, net of tax (12,831) (39,285) (240,800)
Total comprehensive (loss)/income

for the year (676,994) (6,231,543) 1,331,767
Attributable to:
Owners of the Company (577,776) (6,084,283) 1,419,781
(676,994) (6,231,543) 1,331,767
– I-5 –
CONSOLIDATED BALANCE SHEETS
As at December 31,
Note 2020 2021 2022
USD’000 USD’000 USD’000
ASSETS
Non-current assets
Investment properties 14 53,065 718 507
Property, plant and equipment 15 303,032 1,107,564 1,052,884
Right-of-use assets 16 186,762 604,212 481,207
Intangible assets 17 6,014 1,129,194 963,569
Investments accounted for using the
equity method 319 5,552 3,590
Deferred income tax assets 30 5,001 9,848 43,107
Other non-current assets 20 74,093 171,130 63,348
profit or loss 24 – – 481,050
628,286 3,028,218 3,089,262
Current assets
Inventories 15,954 29,359 29,120
Trade receivables 21 180,760 334,876 513,954
Prepayments, other receivables, and other
assets 22 745,363 882,190 703,010
profit or loss 24 71,324 41,581 16,440
Restricted cash 23 928 125,970 79,725
Cash and cash equivalents 23 600,425 2,102,448 1,504,048
1,614,754 3,516,424 2,846,297
Total assets 2,243,040 6,544,642 5,935,559
EQUITY
Equity attributable to owners of the
Company
Share capital 25 7 14 14
Share premium 25, 27 33,184 607,734 603,829
Other reserves 27 (166,468) (525,822) (434,108)
Accumulated losses (625,953) (6,672,936) (5,016,768)
(759,230) (6,591,010) (4,847,033)

Total deficits (870,499) (6,636,424) (4,984,248)
– I-6 –
As at December 31,
Note 2020 2021 2022
USD’000 USD’000 USD’000
LIABILITIES
Non-current liabilities
Borrowings 28 36,917 29,062 1,020,897
Lease liabilities 16 111,378 391,232 341,471
Deferred tax liabilities 30 3,051 33,084 22,407
Employee benefit obligations 2,258 9,185 7,765
Financial liabilities – redemption
liabilities of shares of JNT KSA 29 – 25,458 30,583
profit or loss 29 1,812,915 10,487,306 7,765,067
1,966,519 10,975,327 9,188,190
Current liabilities
Trade payables 31 225,452 577,065 484,215
Advances from customers 33 137,224 291,362 209,925
Accruals and other payables 32 304,362 915,352 776,378
Current income tax liabilities 9,200 20,756 32,424
Borrowings 28 407,143 59,965 77,480
redemption liabilities 29 – 133,749 –
1,147,020 2,205,739 1,731,617
Total liabilities 3,113,539 13,181,066 10,919,807
Total equity and liabilities 2,243,040 6,544,642 5,935,559
– I-7 –
BALANCE SHEETS OF THE COMPANY
As at December 31,
Note 2020 2021 2022
USD’000 USD’000 USD’000
ASSETS
Non-current assets
Loans to subsidiaries 20 688,400 4,438,706 4,379,799
profit or loss – non current – – 481,050
Investments in subsidiaries 18 217,958 1,007,478 1,007,478
906,358 5,446,184 5,868,327
Current assets
Prepayments, other receivables, and other
assets 22 466,110 226,460 307
profit or loss 50,007 – –
Cash and cash equivalents 23 105,475 222,341 3,347
621,592 448,801 3,654
Total assets 1,527,950 5,894,985 5,871,981
EQUITY
Equity attributable to owners of
the Company
Share capital 25 7 14 14
Share premium 27 34,510 609,060 605,155
Other reserves 27 (154,539) (1,566) 294,508
Accumulated losses (164,943) (5,209,717) (2,246,756)
Total deficits (284,965) (4,602,209) (1,347,079)
LIABILITIES
Non-current liability
profit or loss 29 1,812,915 10,201,544 7,212,933
1,812,915 10,201,544 7,212,933
Current liabilities
Accruals and other payables 32 – 161,901 6,127
– 295,650 6,127
Total equity and liabilities 1,527,950 5,894,985 5,871,981
– I-8 –
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to owners of the Company
Non-
Share Share Other Accumulated controlling Total
Note capital premium reserves losses Total interests equity
APPENDIX I
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Balance as at January 1, 2020 4 216,628 (622) (61,117) 154,893 (31,630) 123,263

Comprehensive loss
Loss for the year – – – (564,836) (564,836) (99,327) (664,163)
Other comprehensive loss:
Items that may be reclassified subsequently to
profit or loss
Currency translation differences – – (12,806) – (12,806) 327 (12,479)
Item that will not be reclassified subsequently to
profit or loss
Others – – (134) – (134) (218) (352)
Total comprehensive loss – – (12,940) (564,836) (577,776) (99,218) (676,994)
– I-9 –
Transactions with owners in their capacity
as owner:
Issuance of Series A Preferred Shares 25 3 1,186,630 – – 1,186,633 – 1,186,633
Capital injection from non-controlling shareholders – – – – – 21,729 21,729
Reclassification of Series Pre-A1 Preferred Shares, Series
Pre-A2 Preferred Shares and Series A Preferred Shares to
liability 25, 27, 29 – (1,370,074) (315,612) – (1,685,686) – (1,685,686)
Employee benefit expenses – Share-based compensation
expenses 26 – – 161,073 – 161,073 – 161,073
Transaction with non-controlling interests 35 – – 1,633 – 1,633 (914) 719
Others – – – – – (1,236) (1,236)
Total transactions with owners in their capacity

as owner 3 (183,444) (152,906) – (336,347) 19,579 (316,768)

Balance as at December 31, 2020 7 33,184 (166,468) (625,953) (759,230) (111,269) (870,499)
ACCOUNTANT’S REPORT
Non-
APPENDIX I
Balance as at January 1, 2021 7 33,184 (166,468) (625,953) (759,230) (111,269) (870,499)

Comprehensive loss
Loss for the year – – – (6,046,983) (6,046,983) (145,275) (6,192,258)
Items that may be reclassified subsequently to profit or loss
Currency translation differences – – (12,973) – (12,973) (2,391) (15,364)
Item that will not be reclassified subsequently to profit or loss
Other comprehensive loss – resulted from change of credit risk
of financial liabilities measured at fair value 29 – – (24,874) – (24,874) – (24,874)
Others – – 547 – 547 406 953
Total comprehensive loss – – (37,300) (6,046,983) (6,084,283) (147,260) (6,231,543)

Transactions with owners in their capacity as owner:
Issuance of convertible preferred shares 25 4 – (4) – – – –
Capital injection from non-controlling shareholders – – – – – 1,141 1,141
– I-10 –
Dividends 43 – (72,244) – – (72,244) – (72,244)
Dividends of subsidiaries – – – – – (494) (494)
expenses 26 1 – 370,037 – 370,038 12,556 382,594
Issuance of Class A Shares pursuant to transactions with non-
controlling interests 35 1 332,528 (514,661) – (182,132) 172,731 (9,401)
Business acquisition of Thai and Indonesian operating entities
of regional sponsors and others 36, 37 1 332,485 – – 332,486 26,931 359,417
Disposal of subsidiaries – – (604) – (604) 250 (354)
Repurchase of ordinary shares and convertible preferred shares 26, 29 – (9,329) (95,710) – (105,039) – (105,039)
Repurchase of ordinary shares – commitment 26, 29 – (8,890) (81,190) – (90,080) – (90,080)
Others – – 78 – 78 – 78
Total transactions with owners in their capacity as owner 7 574,550 (322,054) – 252,503 213,115 465,618
Balance as at December 31, 2021 14 607,734 (525,822) (6,672,936) (6,591,010) (45,414) (6,636,424)
Non-
APPENDIX I
Balance as at January 1, 2022 14 607,734 (525,822) (6,672,936) (6,591,010) (45,414) (6,636,424)

Comprehensive income
Profit/(Loss) for the year – – – 1,656,168 1,656,168 (83,601) 1,572,567
Items that may be reclassified subsequently to profit or loss
Currency translation differences – – (247,043) – (247,043) (4,911) (251,954)
Item that will not be reclassified subsequently to profit or loss
Other comprehensive loss – resulted from change of credit risk
of financial liabilities measured at fair value 29 – – 9,875 – 9,875 – 9,875
Others – – 781 – 781 498 1,279
Total comprehensive income – – (236,387) 1,656,168 1,419,781 (88,014) 1,331,767

Transactions with owners in their capacity as owner:
Capital injection from non-controlling shareholders – – – – – 520 520
Equity interests transferred to management team of the cross-
– I-11 –
border business 35 – – 6,025 – 6,025 4,832 10,857
Dividends of subsidiaries – – – – – (15,523) (15,523)
expenses 26 – – 239,521 – 239,521 – 239,521
Repurchase of ordinary shares and convertible preferred shares 25, 26, 29 – (3,905) (25,654) – (29,559) – (29,559)
Issuance of ordinary shares pursuant to the 2022 Incentive Plan 26 – – 71,886 – 71,886 – 71,886
Issuance of ordinary shares of the Company’s subsidiary
pursuant to the acquisition of the operating entity of
Brazilian regional sponsors 17 – – 36,323 – 36,323 6,384 42,707
Total transactions with owners in their capacity as owner – (3,905) 328,101 – 324,196 (3,787) 320,409
Balance as at December 31, 2022 14 603,829 (434,108) (5,016,768) (4,847,033) (137,215) (4,984,248)
CONSOLIDATED STATEMENTS OF CASH FLOWS

Note 2020 2021 2022
USD’000 USD’000 USD’000
Cash flows used in operating activities

Cash generated used in operations 34 (117,479) (900,360) (470,809)
Interest received 3,170 9,319 25,224
Income tax paid (40,391) (76,133) (74,232)
(154,700) (967,174) (519,817)
Cash flows used in investing activities

Purchase of financial assets at fair value
through profit or loss (306,839) (1,149,051) (998,355)
Redemption of financial assets at
fair value through profit or loss 243,388 1,184,448 507,376
Investment in associates (1,389) (3,070) –
Loans to related parties 39 (57,599) (128,158) (320,000)
Loans to third parties (628,466) (272,410) (38,359)
Collection of loans to related parties and
interests received 39 1,004 6,611 516,024
Repayment of loans by third parties and
interests received 376,526 465,698 18,658
Purchase of property, plant and equipment (257,742) (513,675) (573,226)
Purchases of investment properties (1,678) (513) –
Proceeds from disposal of property,
plant and equipment 2,062 23,846 32,015
Purchases of intangible assets (3,570) (6,036) (7,451)
Acquisition of subsidiaries, net of 36,
cash acquired 37, 38 126 (608,696) 3,561
Disposals of subsidiaries and associates (909) – –
(635,086) (1,001,006) (859,757)
– I-12 –

Note 2020 2021 2022
USD’000 USD’000 USD’000
Cash flows from financing activities

Movement of restricted cash (342) (12) 415
Proceeds from borrowings 400,889 215,162 1,099,253
Repayment of borrowings (137,795) (610,209) (105,746)
Interest paid for borrowings (3,004) (8,009) (38,792)
Interest paid to holders of preferred
shares – (81,602) –
Dividends paid – (120,838) (28,558)
Net proceeds from issuance of Series B
Preferred Shares, Series B+ Preferred
Shares, Series C1 Preferred Shares of
the Company and other preferred shares 25, 29 100,000 3,966,126 219,024
Net proceeds from issuance of Series A
Preferred Shares of the Company 977,193 236,862 –
Net proceeds from issuance of financial
liabilities – redemption liabilities of
shares of JNT KSA – 20,000 –
Net proceeds from issuance of shares to
network partners – – 44,579
Principal elements of lease payments (61,405) (101,703) (262,668)
Interest elements of lease payments (6,007) (13,860) (37,318)
Capital injection from non-controlling
shareholders 15,637 1,141 520
Repurchase of ordinary shares 25, 26 – (23,948) (15,294)
[REDACTED] expenses – [REDACTED] [REDACTED]
Cash (paid)/received in transactions with
non-controlling interests 35 – (9,401) 6,274
1,285,166 3,469,507 881,328
Net increase/(decrease) in cash and cash

equivalents 495,380 1,501,327 (498,246)
Cash and cash equivalents at the
beginning of the year 97,173 600,425 2,102,448
on cash and cash equivalents 7,872 696 (100,154)
Cash and cash equivalents at the end of

the year 600,425 2,102,448 1,504,048
– I-13 –
II NOTES TO THE HISTORICAL FINANCIAL INFORMATION
1. GENERAL INFORMATION, HISTORY AND REORGANIZATION
1.1 General information
J&T Global Express Limited (the “Company”), was incorporated in the Cayman Islands on October 24, 2019
as an exempted company registered under the laws of the Cayman Islands. The address of the Company’s
registered office is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman,
KY1-1205, Cayman Islands.
The Company acts as an investment holding company and its subsidiaries and consolidated affiliated entities,
as set out in Note 18 (collectively, the “Group”), are principally engaged in express delivery services
(collectively, the “Listing Business”) in the People’s Republic of China (the “PRC”, or “China”), Indonesia,
the Philippines, Malaysia, Thailand, Vietnam, and other countries.
Mr. Li is the ultimate controlling shareholder of the Company as of the date of this report.
1.2 History and reorganization
On May 8, 2015, Mr. Li and other individual investors established a holding company (the “BVI Holdco”) in
British Virgin Islands, with 320,000,000 ordinary shares. The total share capital and share premium was
Renminbi (“RMB”) 220,000,000 (approximately USD33,187,000). Since the establishment of the BVI Holdco,
the Group started operations in Indonesia in 2015, and entered into the express delivery markets in Malaysia
and Vietnam in 2018, and then in the Philippines, Thailand and Cambodia in 2019. In 2020, the Group entered
into the express delivery market in China and Singapore. In 2022, the Group further established express
delivery operations in Mexico, Egypt, Brazil, UAE, and Saudi Arabia (together with UAE called “Middle
East”).
For China, the Group entered into the market by acquiring local operating licenses and established its own
operations, and further expanded its operations along with business acquisitions of certain local entities. For
Indonesia, the Group established local operations with business acquisitions of certain local entities, and
further expanded its operations along with acquisitions of certain operating entities of its regional sponsors.
For Singapore, the Group established local operations with business acquisitions of certain local entities. For
Thailand, the Group established local subsidiaries to commence local operations, and further expanded its
operations along with business acquisitions of certain operating entities of its regional sponsors. For Vietnam
and the Philippines, the Group entered into the market by acquiring local operating licenses and established
its own operations. For Malaysia, Cambodia, and other countries, the Group established local subsidiaries to
commence local operations.
On July 15, 2017, the BVI Holdco entered into a subscription agreement for the Series Pre-A1 Preferred Shares
financing with certain third-party investors. The total consideration was USD103,408,000.
On August 20, 2018, the BVI Holdco entered into a subscription agreement for the Series Pre A2 Preferred
Shares financing with certain third-party investors. The total consideration was USD80,037,000.
The Company was established on October 24, 2019, with an authorised share capital of USD50,000 divided
into 5,000,000,000 shares with par value of USD0.00001 each. On the incorporation date, the Company and
the BVI Holdco underwent a reorganization and entered into a share swap agreement, under which the
Company issued 448,933,332 shares to the shareholders of the BVI Holdco and in return the Company
acquired all the equity interest of the BVI Holdco (the “Reorganization”).
Since then, the Company issued certain series of preferred shares, further details of which are set out in Note
25 and Note 29.
The regulations in certain jurisdictions have certain restrictions on foreign ownership of companies that
provide express delivery services. In order to comply with relevant local regulations, the Company controls
relevant subsidiaries in the PRC and Indonesia through certain contractual arrangements.
– I-14 –
(a) Contractual agreements with the VIE in the PRC
In accordance with a series of contractual arrangements effective from January 1, 2020, entered into
among a wholly owned subsidiary of the Company (the “HK Holding”), the parent company (the “China
VIE”) of the express delivery service licence holding company in the PRC and its equity holders, the
HK Holding and the Company were able to:
• exercise equity holders’ voting rights of the China VIE;
• receive substantially all of the economic interest returns generated by the China VIE in
consideration for the business support, technical and consulting services provided by the HK
Holding;
• obtain an irrevocable and exclusive right to purchase all of the equity interests in the China VIE
from its respective equity holders at a minimum purchase price when it is permitted under laws
and regulations in the PRC, and the HK Holding may exercise such options at any time until it
has acquired all equity interests of the China VIE; and
• obtain a pledge over the entire equity interests of the China VIE from its respective equity holders
as collateral security for the due payment and timely performance by the China VIE and its equity
holders in accordance with the terms in the contractual arrangements.
The abovementioned arrangements were terminated on April 22, 2020 and in accordance with a series
of contractual arrangements effective since then, entered into among a wholly owned subsidiary of the
Company (the “China WFOE”, a wholly foreign-owned enterprise in China), the China VIE and its
equity holders, the China WFOE and the Company are able to:
• exercise equity holders’ voting rights of the China VIE;
• receive substantially all of the economic interest returns generated by the China VIE in
consideration for the business support, technical and consulting services provided by the China
WFOE;
• obtain an irrevocable and exclusive right to purchase all of the equity interests in the China VIE
from the respective equity holders at a minimum purchase price when it is permitted under laws
and regulations in the PRC and the China WFOE may exercise such options at any time until it
has acquired all equity interests of the China VIE; and
• obtain a pledge over the entire equity interests of the China VIE from its respective equity holders
as collateral security for the due payment and timely performance by the China VIE and its equity
holders in accordance with the terms in the contractual arrangements.
As a result of such contractual arrangements, the Company has the rights to exercise power over the
China VIE and its subsidiaries, the right to receive variable returns from its involvement in the China
VIE and its subsidiaries, and the ability to affect those returns through its power over the China VIE and
its subsidiaries, and is therefore considered to control the China VIE and its subsidiaries. Consequently,
the Company regards the China VIE and its subsidiaries as controlled entities and consolidated the
assets, liabilities, and results of operations of the China VIE and its subsidiaries in the consolidated
financial information of the Group.
(b) Contractual agreements with the VIE in Indonesia
In accordance with a series of contractual arrangements effective from August 15, 2016, entered into
among the HK Holding, the local holding companies of the relevant businesses in Indonesia
(collectively, the “Indonesia VIE”) and their equity holders, the HK Holding and the Company are able
to:
• exercise substantially all the powers and rights associated to the portion of contributed capital
held by equity holders of the Indonesia VIE;
– I-15 –
• receive substantially all of the economic interest returns generated by the Indonesia VIE in
consideration for the business support, technical and consulting services provided by the HK
Holding;
• obtain an irrevocable and exclusive right to purchase all or part of the equity interests in the
Indonesia VIE from its respective equity holders when it is permitted under laws and regulations
in Indonesia. The HK Holding may exercise such options at any time until it has acquired all
equity interests of the Indonesia VIE. The purchase price is set at HK Holding’s discretion,
subject to any restrictions imposed by Indonesian law; and
• obtain a pledge over the entire equity interests of the Indonesia VIE from its respective equity
holders as collateral security for the due payment and timely performance by the Indonesia VIE
and its equity holders in accordance with the terms in the contractual arrangements.
Starting from March 29, 2022, the abovementioned contractual arrangements were terminated, and as
per a new series of contractual arrangements entered into among an Indonesian subsidiary of the HK
Holding (the “Indonesia Holding”), the Indonesia VIE and their equity holders, with similar terms and
clauses, the Indonesia Holding was able to exercise similar power and to be exposed to similar returns
from the Indonesia VIE.
As a result of such arrangements, the Company has the rights to exercise power over the Indonesian VIE
and its subsidiaries, the rights to receive variable returns from its involvement in the Indonesian VIE
and its subsidiaries, and the ability to affect those returns through its power over the Indonesian VIE
and its subsidiaries, and is therefore considered to control the Indonesian VIE and its subsidiaries.
Consequently, the Company regards the Indonesian VIE and its subsidiaries as controlled entities and
consolidated the assets, liabilities and results of operations of the Indonesian VIE and its subsidiaries
in the consolidated financial information of the Group.
(c) Contractual agreements with the VIE in Vietnam (terminated since June 9, 2021)
In accordance with a series of contractual arrangements effective from January 1, 2018, entered into
among the HK Holding, a related party of the Group (Company H), and the main operating entity in
Vietnam (the “Vietnam VIE 1”) and its equity holders, the HK Holding and the Company were able to:
• exercise all the powers and rights associated to the portion of contributed capital held by equity
holders of the Vietnam VIE 1;
• receive substantially 62% of the economic interest returns generated by the Vietnam VIE 1, in
consideration for the technical services, marketing and management consulting and human
resources support provided by the HK Holding together with Company H (while Company H
receives 38%);
• obtain an irrevocable and exclusive right to purchase up to 62% of the equity interests in the
Vietnam VIE 1 from its respective equity holders when it is permitted under laws and regulations
in Vietnam. The HK Holding may exercise such options at any time until it has acquired all the
62% of equity interests of the Vietnam VIE 1. The purchase price is set at HK Holding’s
discretion, subject to any restrictions imposed by Vietnamese law and above the book value as per
Vietnam VIE 1’s accounting books (while Company H obtains similar right to purchase the
remaining 38% of the equity interests); and
• obtain a pledge over 62% of equity interests of the Vietnam VIE 1 from its respective equity
holders as collateral security for the due payment and timely performance by the Vietnam VIE 1
and its equity holders in accordance with the terms in the contractual arrangements (while
Company H obtains a pledge over the remaining 38% of the equity interests).
In December 2020, the Group underwent a reorganization, in which an intermediate holding company
of Vietnam VIE 1 (the “Vietnam VIE 2”, together with Vietnam VIE 1, the “Vietnam VIEs”) became the
shareholder of Vietnam VIE 1 through a local holding company. Effective from December 2, 2020, the
abovementioned contractual arrangements were terminated, and as per the new series of contractual
– I-16 –
arrangements entered into among the HK Holding, Company H and the Vietnam VIE 2 and its equity
holders, with similar terms and clauses, the HK Holding and the Company were able to exercise similar
power and to be exposed to similar returns from Vietnam VIEs.
On April 30, 2021, the Company completed a series of transactions for the purpose of acquiring
Company H’s power over and the returns from Vietnam VIEs, upon which relevant abovementioned
contractual arrangements were terminated and in accordance with a new series of contractual
arrangements entered into among the HK Holding, the Vietnam VIE 2 and its equity holders, the HK
Holding and the Company were able to:
• exercise substantially all the powers and rights associated to the portion of contributed capital
held by equity holders of the Vietnam VIE 2;
• receive substantially all of the economic interest returns generated by the Vietnam VIE 2, in
consideration for the technical services, marketing and management consulting and human
resources support provided by the HK Holding;
• obtain an irrevocable and exclusive right to purchase all of the equity interests in the Vietnam VIE
2 from its respective equity holders when it is permitted under laws and regulations in Vietnam.
The HK Holding may exercise such options at any time until it has acquired all the of equity
interests of the Vietnam VIE 2. The purchase price is set at the HK Holding’s discretion, subject
to any restrictions imposed by Vietnamese law and above the book value as per Vietnam VIE 2’s
accounting books; and
• obtain a pledge over all the equity interests of the Vietnam VIE 2 from its respective equity
holders as collateral security for the due payment and timely performance by the Vietnam VIE 2
and its equity holders in accordance with the terms in the contractual arrangements.
As a result of such contractual arrangements, the Company has the rights to exercise power over the
Vietnam VIE 2 and its subsidiaries, the rights to receive variable returns from its involvement in the
Vietnam VIE 2 and its subsidiaries, and the ability to affect those returns through its power over the
Vietnam VIE 2 and its subsidiaries, and is therefore considered to control the Vietnam VIE 2 and its
subsidiaries. Consequently, the Company regards the Vietnam VIE 2 and its subsidiaries as controlled
entities and consolidated the assets, liabilities, and results of operations of the Vietnam VIE 2 and its
subsidiaries in the consolidated financial information of the Group.
Starting from June 9, 2021, with a series of reorganizations, the HK Holding indirectly obtained all the
equity interests in the Vietnam VIEs, and the abovementioned contractual agreements were terminated.
Nevertheless, the contractual arrangements may not be as effective as direct legal ownership in
providing the Group with direct control over those aforementioned VIEs and its subsidiaries.
Uncertainties presented by relevant local legal systems could impede the Group’s beneficiary rights of
the results, assets, and liabilities of those aforementioned VIEs and its subsidiaries. The directors of the
Company, based on the advice of its legal counsel, consider that the contractual arrangements are in
compliance with relevant local laws and regulations, and are legally binding and enforceable.
1.3 Basis of presentation
Immediately prior to and after the Reorganization, all of the Group’s business is held by the BVI Holdco. The
Group’s Business is mainly conducted through a couple of operating entities in relevant countries, which are
all directly or indirectly controlled by the BVI Holdco. Pursuant to the Reorganization, the BVI Holdco and
all of the Group’s business are transferred to and held by the Company. The Company has not been involved
in any other business prior to the Reorganization and does not meet the definition of a business. The
Reorganization is merely a recapitalization of the Group’s business with no change in management of such
business and the ultimate owners of the Group’s business remain the same. Accordingly, the Group resulting
from the Reorganization is regarded as a continuation of the Group’s business under the BVI Holdco. and, for
the purpose of this report, the Historical Financial Information has been prepared and presented as a
continuation of the consolidated financial statements of the BVI Holdco and its subsidiaries, with the assets
and liabilities of the Group recognized and measured at the carrying amounts of the Group’s business under
the consolidated financial statements of the BVI Holdco for all periods presented.
– I-17 –
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of the Historical Financial Information are set out
below. These policies have been consistently applied during the Track Record Period, unless otherwise stated.
2.1 Basis of preparation
The Historical Financial Information of the Group has been prepared in accordance with International
Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”)
during the Track Record Period. The Historical Financial Information of the Group has been prepared under
the historical cost convention, except for financial assets and financial liabilities measured at fair value
through profit or loss.
The Group incurred net losses of USD664.2 million, USD6.2 billion and net profit of USD1.6 billion for the
years ended December 31, 2020, 2021, and 2022, respectively. The Group had net operating cash outflows of
USD117.5 million, USD900.1 million and USD470.0 million for the years ended December 31, 2020, 2021,
and 2022, respectively. As at December 31, 2022, although the Group reported a net deficit of equity of
USD5.0 billion, the Group’s cash and cash equivalents and net current assets were USD1.5 billion and USD1.1
billion. In addition, the Group’s financial liabilities as at December 31, 2022 included convertible preferred
shares, with an amount of USD7.8 billion, that would not contractually become redeemable within the next 12
months.
Management has prepared a cash flow projection covering a period of not less than 12 months from December
31, 2022, based on which the directors of the Company believe that the Group will have sufficient working
capital to fund its operations and to meet its financial obligations as and when they fall due within 12 months
from December 31, 2022. Consequently, the Historical Financial Information has been prepared on a going
concern basis.
The preparation of the Historical Financial Information in conformity with IFRSs requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process of applying
the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the Historical Financial Information are disclosed in Note
4.
All effective standards, amendments to standards and interpretations, which are mandatory for the financial
year beginning on January 1, 2022, including IFRS 9, IFRS 15 and IFRS 16, are consistently applied to the
Group for the Track Record Period.
New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for Track
Record Period and have not been early adopted by the Group. Those new standards, amendments of standards
and interpretations are as follows:
Effective for annual periods

beginning on or after
IFRS 10 (Amendment) and IAS Sale or contribution of assets To be determined

28 (Amendment) between an investor and its
associate or joint venture
IFRS 17 Insurance contracts January 1, 2023
IAS 1 (Amendment) and IFRS Disclosure of Accounting Policies January 1, 2023
Practice Statement 2
(Amendment)
IAS 12 (Amendment) Deferred Tax related to Assets and January 1, 2023
Liabilities arising from a Single
Transaction
IAS 8 (Amendment) Definition of Accounting January 1, 2023
Estimates
IFRS 16 (Amendments) Lease Liability in a Sale and January 1, 2024
Leaseback
IAS 1 (Amendments) Non-current Liabilities with January 1, 2024
Covenants
IAS 1 (Amendment) Classification of liabilities as January 1, 2024
current or non-current
– I-18 –
The directors of the Company anticipate that the application of the above new standards, amendments and
interpretations will have no material impact on the Historical Financial Information upon adoption, except for
Amendment to IAS 1 where the convertible preference shares of the Company and of the Company’s
subsidiaries, which are convertible by the holders at any time, will be reclassified to current liabilities upon
adoption of IAS 1.
2.2 Principles of consolidation and equity accounting
2.2.1 Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group
controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power to direct the activities of the
entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group (refer
to Note 2.3).
Inter-company transactions, balances, and unrealized gains on transactions between Group companies
are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an
impairment of the transferred asset. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated income statement, statement of comprehensive income, statement of changes in equity and
balance sheet respectively.
There are entities controlled by the Company under certain contractual arrangements. The Company
does not have legal ownership in equity of these entities or their subsidiaries. There are also entities
controlled by the Company where the Company is holding less than 50% of their equity interests
respectively due to certain local restrictions on foreign ownership of companies that provide express
delivery services. Nevertheless, under certain contractual arrangements or shareholder’s agreements
entered into with the registered owners or together with other local owners of these entities, the
Company and its other legally owned subsidiaries control these entities by way by controlling their
major corporate governance and decision-making processes and directing the results of such processes,
governing their major operating, investment, and financing policies and etc. In addition, the Company
and its other legally owned subsidiaries are also exposed to variable returns in such companies through
certain service contracts, which constitute substantially all the net income of such companies, dividend
income as a result of its direct shareholding and as per relevant shareholder’s agreements, and etc.
Therefore, the Group has rights to exercise power over these entities, receives variable returns from its
involvement in these entities, and has the ability to affect those returns through its power over these
entities. As a result, they are presented as controlled entities of the Group.
2.2.2 Associates
Associates are all entities over which the Group has significant influence but not control or joint control.
This is generally the case where the Group holds between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method of accounting (see Note 2.2.3
below), after initially being recognized at cost.
2.2.3 Equity method
Under the equity method of accounting, the investments are initially recognized at cost and adjusted
thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in profit
or loss, and the Group’s share of movements in other comprehensive income of the investee in other
comprehensive income. Dividends received or receivable from associates and joint ventures are
recognized as a reduction in the carrying amount of the investment.
– I-19 –
Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in
the entity, including any other unsecured long-term receivables, the Group does not recognise further
losses, unless it has incurred obligations or made payments on behalf of the other entity.
Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated
to the extent of the Group’s interest in these entities. Unrealized losses are also eliminated unless the
transaction provides evidence of an impairment of the asset transferred. Accounting policies of
equity-accounted investees have been changed where necessary to ensure consistency with the policies
adopted by the Group.
The carrying amount of equity-accounted investments is tested for impairment in accordance with the
policy described in Note 2.10.
2.2.4 Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the Group. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative
interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling
interests and any consideration paid or received is recognized in a separate reserve within equity
attributable to owners of the Company.
When the Group ceases to consolidate or equity account for an investment because of a loss of control,
joint control or significant influence, any retained interest in the entity is remeasured to its fair value
with the change in carrying amount recognized in profit or loss. This fair value becomes the initial
carrying amount for the purposes of subsequently accounting for the retained interest as an associate,
joint venture, or financial asset. In addition, any amounts previously recognized in other comprehensive
income in respect of that entity are accounted for as if the Group had directly disposed of the related
assets or liabilities. This may mean that amounts previously recognized in other comprehensive income
are reclassified to profit or loss or transferred to another category of equity as specified/permitted by
applicable IFRSs.
If the ownership interest in a joint venture or an associate is reduced but joint control or significant
influence is retained, only a proportionate share of the amounts previously recognized in other
comprehensive income are reclassified to profit or loss where appropriate.
2.3 Business combination
The acquisition method of accounting is used to account for all business combinations, regardless of whether
equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary
comprises the:
• fair values of the assets transferred
• liabilities incurred to the former owners of the acquired business
• equity interests issued by the Group
• fair value of any asset or liability resulting from a contingent consideration arrangement, and
• fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognises
any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or
at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets.
Acquisition-related costs are expensed as incurred.
– I-20 –
The excess of the:
• consideration transferred,
• amount of any non-controlling interest in the acquired entity, and
• acquisition-date fair value of any previous equity interest in the acquired entity
over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than
the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in
profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental
borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier
under comparable terms and conditions. Contingent consideration is classified either as equity or a financial
liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in
fair value recognized in profit or loss.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains
or losses arising from such remeasurement are recognized in profit or loss.
2.4 Separate financial statements
Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct attributable costs
of investment. The results of subsidiaries are accounted for by the company on the basis of dividend received
and receivable.
Impairment testing of the investments in subsidiaries is required upon receiving a dividend from these
investments if the dividend exceeds the total comprehensive income of the subsidiary in the period the
dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds
the carrying amount in the consolidated financial statements of the investee’s net assets including goodwill.
2.5 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Chief Executive Officer (the “CEO”) that
makes strategic decisions.
2.6 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the
currency of the primary economic environment in which each entity operates respectively (“the
functional currency”). The Historical Financial Information is presented in United States Dollars
(“USD”), which is the Company’s functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are generally recognized in profit or loss. They are deferred in
equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are
attributable to part of the net investment in a foreign operation.
– I-21 –
Foreign exchange gains and losses that relate to borrowings are presented in the consolidated income
statement, within finance costs. All other foreign exchange gains and losses are presented in the
consolidated income statement on a net basis within other gains/(losses).
Non-monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined. Translation differences on assets and
liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation
differences on non-monetary assets and liabilities such as equities held at fair value through profit or
loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on
non-monetary assets such as equities classified as fair value through other comprehensive income are
recognized in other comprehensive income.
(c) Group companies
The results and financial position of foreign operations (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date
of that balance sheet,
• income and expenses for each income statement and statement of comprehensive income are
translated at average exchange rates (unless this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case income and
expenses are translated at the dates of the transactions), and
• all resulting exchange differences are recognized in other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets
and liabilities of the foreign operation and translated at the closing rate.
(d) Disposal of foreign operation and partial disposal
On the disposal of a foreign operation (that is, a disposal of the Group’s entire interest in a foreign
operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, a
disposal involving loss of joint control over a joint venture that includes a foreign operation, or a
disposal involving loss of significant influence over an associate that includes a foreign operation), all
of the currency translation differences accumulated in equity in respect of that operation attributable to
the owners of the company are reclassified to profit or loss.
In the case of a partial disposal that does not result in the Group losing control over a subsidiary that
includes a foreign operation, the proportionate share of accumulated currency translation differences is
re-attributed to non-controlling interests and are not recognized in profit or loss. For all other partial
disposals (that is, reductions in the Group’s ownership interest in associates or joint ventures that do not
result in the Group losing significant influence or joint control), the proportionate share of the
accumulated exchange difference is reclassified to profit or loss.
2.7 Property, plant and equipment
All property, plant and equipment are stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from
equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant
and equipment.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the
reporting period in which they are incurred.
– I-22 –
Depreciation is calculated using the straight-line method to allocate their costs to their residual values over
their estimated useful lives as follows:
Buildings and warehouses 10-20 years

Logistic equipment 3-10 years
Vehicles 3-10 years
Office equipment 2-5 years
Freehold Land Infinite useful life
Leasehold improvements Estimated useful lives or remaining lease terms,
whichever is shorter
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount (Note 2.10).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included
in profit or loss.
2.8 Investment properties
Investment properties, principally freehold buildings, warehouses and land, are held for long-term rental yields
and are not occupied by the Group. Investment property is measured at historical cost less depreciation.
Historical cost includes related transaction costs and where applicable borrowing costs.
Depreciation is calculated using the straight-line method to allocate their costs to their residual values over
their estimated useful lives as shown in Note 2.7.
2.9 Intangible assets
(a) Goodwill
Goodwill is measured as described in Note 2.3. Goodwill on acquisitions of subsidiaries is included in

intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently
if events or changes in circumstances indicate that it might be impaired, and is carried at cost less
accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is
made to those cash-generating units or groups of cash-generating units that are expected to benefit from
the business combination in which the goodwill arose. The units or groups of units are identified at the
lowest level at which goodwill is monitored for internal management purposes, being the operating
segments (Note 5).
(b) Software
Computer softwares are initially recognized and measured at costs incurred to acquire and bring them
to use, amortised on a straight-line basis over their estimated useful lives, and recorded in amortization
within operating expenses in the consolidated income statement.
(c) Customer relationship
Customer relationships acquired in a business combination are recognised at fair value at the acquisition
date. Customer relationships have a finite useful life and are carried at cost less accumulated
amortisation. Amortisation is calculated using the straight-line method over the estimated life.
– I-23 –
(d) Trademark
Separately acquired trademarks are shown at historical cost. Trademarks acquired in a business
combination are recognised at fair value at the acquisition date. They have an infinite useful life and are
not amortised but tested for impairment annually, or more frequently if events or changes in
circumstances indicate that they might be impaired, and is carried at cost less accumulated impairment
losses.
(e) Licence and others
Separately acquired licences and other intangible assets are shown at historical cost. These intangible
assets have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is
calculated using the straight-line method to allocate the cost over their estimated useful lives.
(f) Research and development expenditures
Research expenditure is recognized as an expense as incurred. Costs incurred on development projects

(relating to the design and testing of new or improved products) are capitalized as intangible assets when
recognition criteria are fulfilled. These criteria include:
• it is technically feasible to complete the software product so that it will be available for use;
• management intends to complete the software product and use or sell it;
• there is an ability to use or sell the software product;
• it can be demonstrated how the software product will generate probable future economic benefits;
• adequate technical, financial and other resources to complete the development and to use or sell
the software product are available; and
• the expenditure attributable to the software product during its development can be reliably
measured.
Other development expenditures that do not meet these criteria are recognized as an expense as incurred.
(g) Amortisation methods and periods
The Group amortises intangible assets with a limited useful life using the straight-line method over the
following periods:
Customer relationship 10-12 years

Software 2-5 years
Trademark 10-20 years
Licence 5-7 years
2.10 Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash
inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill
that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting
period.
– I-24 –
2.11 Investments and other financial assets
2.11.1 Classification
The Group classifies its financial assets in the following measurement categories:
Those to be measured subsequently at fair value (either through OCI or through profit or loss), and those
to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For
investments in equity instruments that are not held for trading, this will depend on whether the Group
has made an irrevocable election at the time of initial recognition to account for the equity investment
at fair value through other comprehensive income (FVOCI).
The Group reclassifies debt investments when and only when its business model for managing those
assets changes.
2.11.2 Recognition and derecognition
Regular way purchases and sales of financial assets are recognized on trade-date, the date on which the
Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive
cash flows from the financial assets have expired or have been transferred and the Group has transferred
substantially all the risks and rewards of ownership.
2.11.3 Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed
in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the
asset and the cash flow characteristics of the asset. There are three measurement categories into which
the Group classifies its debt instruments:
• Amortised cost: Assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at amortised cost. Interest
income from these financial assets is included in finance income using the effective interest rate
method. Any gain or loss arising on derecognition is recognized directly in profit or loss and
presented in other gains/(losses) together with foreign exchange gains and losses. Impairment
losses are presented as separate line item in the consolidated income statement.
• FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial
assets, where the assets’ cash flows represent solely payments of principal and interest, are
measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the
recognition of impairment gains or losses, interest income and foreign exchange gains and losses
which are recognized in profit or loss. When the financial asset is derecognized, the cumulative
gain or loss previously recognized in OCI is reclassified from equity to profit or loss and
recognized in other gains/(losses). Interest income from these financial assets is included in
finance income using the effective interest rate method. Foreign exchange gains and losses are
presented in other gains/(losses) and impairment expenses are presented as separate line item in
the consolidated income statement.
– I-25 –
• FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL.
A gain or loss on a debt investment that is subsequently measured at FVPL is recognized in profit
or loss and presented net within other gains/(losses) in the period in which it arises.
Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management
has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent
reclassification of fair value gains and losses to profit or loss following the derecognition of the
investment. Dividends from such investments continue to be recognized in profit or loss as other income
when the Group’s right to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognized in other gains/(losses) in the
consolidated income statement as applicable. Impairment losses (and reversal of impairment losses) on
equity investments measured at FVOCI are not reported separately from other changes in fair value.
2.11.4 Impairment
The Group assesses on a forward-looking basis the expected credit loss associated with its debt
instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires
expected lifetime losses to be recognized from initial recognition of the receivables, see Note 21 for
further details.
2.12 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined on the weighted average
cost basis and net realisable value is based on estimated selling prices less any estimated costs to be incurred
to completion and disposal.
As at December 31, 2020, 2021, and 2022, inventories of the Group are generally consumables and accessories,
including packing supplies, apparels and etc.
2.13 Trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business.
Trade receivables are recognized initially at the amount of consideration that is unconditional unless they
contain significant financing components, when they are recognized at fair value. The Group holds the trade
receivables with the objective of collecting the contractual cash flows and therefore measures them
subsequently at amortised cost using the effective interest method. See Note 21 for further information about
the Group’s accounting for trade receivables and Note 3.1 for a description of the Group’s impairment policies.
2.14 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value.
2.15 Share capital
Ordinary shares and non-redeemable participating preferred shares are classified as equity (Note 25).
Mandatorily redeemable preferred shares are classified as liabilities (Note 29).
Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a
deduction, net of tax, from the [REDACTED].
– I-26 –
2.16 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period. Trade payables also include bank acceptance notes with trade
nature and are due within 12 months.
Trade payables are recognized initially at fair value and subsequently measured at amortised cost using the
effective interest method.
2.17 Financial liabilities at fair value through profit or loss
Before and during the Track Record Period, the Group entered into a series of share purchase agreements with
certain investors and issued Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares, Series A Preferred
Shares, Series B Preferred Shares, Series B+ Preferred Shares, Series C1 Preferred Shares, Series C2 Preferred
Shares and JET Global Series A Preferred Shares.
The Group designated the convertible preferred shares, which the host contracts are financial liabilities, as
financial liabilities at fair value through profit or loss, which are initially recognized at fair value. Any directly
attributable transaction costs are recognized as finance costs in profit or loss.
The component of fair value changes relating to the Company’s own credit risk is recognized in other
comprehensive income/(loss). Amounts recorded in other comprehensive income/(loss) related to credit risk
are not subject to recycling in profit or loss, but are transferred to retained earnings when realized. Fair value
changes relating to market risk are recognized in profit or loss.
The convertible preferred shares are classified as current liabilities unless the Group has an unconditional right
to defer settlement of the liability for at least 12 months after the reporting period.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured to their fair value at the end of each reporting period.
2.18 Financial liabilities – share redemption liabilities
A contract that contains an obligation for the Group to purchase its own equity instruments for cash or another
financial asset gives rise to a financial liability for the present value of the redemption amount.
The financial liability is recognised initially at the present value of the redemption amount, and is reclassified
from equity. Subsequently, the financial liability is measured at amortised cost. If the contract expires without
delivery, the carrying amount of the financial liability is reclassified to equity. The Group’s contractual
obligation to purchase its own equity instruments gives rise to a financial liability for the present value of the
redemption amount even if the obligation to purchase is conditional on the counterparty exercising a right to
redeem.
2.19 Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and
the redemption amount is recognized in profit or loss over the period of the borrowings using the effective
interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan
to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of
the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over
the period of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any noncash assets
transferred or liabilities assumed, is recognized in profit or loss as finance costs.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting period.
– I-27 –
2.20 Borrowing costs
Borrowing costs are expensed in the period in which they are incurred.
2.21 Current and deferred income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
(a) Current income tax
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted
at the end of the reporting period in the countries where the company and its subsidiaries and associates
operate and generate taxable income. Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is subject to interpretation and considers
whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group
measures its tax balances either based on the most likely amount or the expected value, depending on
which method provides a better prediction of the resolution of the uncertainty.
(b) Deferred income tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the Historical Financial
Information. However, deferred tax liabilities are not recognized if they arise from the initial recognition
of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantively enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realized, or the deferred income tax
liability is settled.
The deferred tax liability in relation to investment property that is measured at fair value is determined
assuming the property will be recovered entirely through sale.
Deferred tax assets are recognized only if it is probable that future taxable amounts will be available
to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognized for temporary differences between the carrying
amount and tax bases of investments in foreign operations where the company is able to control the
timing of the reversal of the temporary differences and it is probable that the differences will not reverse
in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current
tax assets and liabilities and where the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items
recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized
in other comprehensive income or directly in equity, respectively.
The Group considers the lease as a single transaction in which the assets and liabilities are integrally
linked. There is no net temporary difference at inception. Subsequently, when differences on settlement
of the liabilities and the amortisation of right-of-use assets arise, there will be a net temporary difference
on which deferred tax is recognized.
– I-28 –
2.22 Employee benefits
(a) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are
expected to be settled wholly within 12 months after the end of the period in which the employees render
the related service are recognized in respect of employees’ services up to the end of the reporting period
and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.
(b) Social security obligations
The Group’s subsidiaries have to make contribution to certain social security plans managed by relevant
local government authorities in accordance with the relevant rules and regulations. Contributions to
these plans are charged to the consolidated income statement as and when incurred. The Group has no
legal or constructive obligations to pay further contributions.
2.23 Share-based compensation
Equity-settled share-based compensation transactions
The Group operates share incentive plans, under which it receives services from employees as consideration
for equity instruments of the Company. The fair value of the equity instruments received in exchange for the
services is recognized as an expense on the consolidated income statement with a corresponding increase in
equity.
In terms of the equity instruments awarded to employees, the total amount to be expensed is determined by
reference to the fair value of equity instruments granted.
The total amount expensed is recognized over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied if applicable.
At the end of each reporting period, the Group revises its estimates of the number of equity instruments that
are expected to vest based on the non-marketing vesting and service conditions. It recognizes the impact of the
revision to original estimates, if any, in the consolidated income statement, with a corresponding adjustment
to equity.
In some circumstances, employees may provide services in advance of the grant date and therefore the grant
date fair value is estimated for the purposes of recognizing the expense during the period between service
commencement period and grant date.
2.24 Provisions
Provisions for legal claims, service warranties and make good obligations are recognized when the Group has
a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized
for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognized even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to the liability. The increase in the provision due to the passage of time is recognized as interest expense.
– I-29 –
2.25 Revenue recognition
The Group recognises revenue when (or as) a performance obligation is satisfied, i.e. when control of the
goods or services underlying the particular performance obligation is transferred to the customer.
Control is transferred over time and revenue is recognized over time by reference to the progress towards
complete satisfaction of the relevant performance obligation if one of the following criteria is met:
• The customer simultaneously receives and consumes the benefits provided by the Group’s performance
as the Group performs;
• The Group’s performance creates or enhances an asset that the customer controls as the Group performs;
or
• The Group’s performance does not create an asset with an alternative use to the Group and the Group
has an enforceable right to payment for performance completed to date.
Otherwise, revenue is recognized at a point in time when the customer obtains control of the distinct goods
or services.
A contract asset represents the Group’s right to consideration in exchange for goods or services that the Group
has transferred to a customer that is not yet unconditional. It is assessed for impairment in accordance with
IFRS 9. In contrast, a receivable represents the Group’s unconditional right to consideration, i.e. only the
passage of time is required before payment of that consideration is due.
A contract liability represents the Group’s obligation to transfer goods or services to a customer for which the
Group has received consideration (or an amount of consideration is due) from the customer.
A contract asset and a contract liability relating to a contract are accounted for and presented on a net basis.
(a) Express delivery services
(i) Services provided to pick-up outlets of network partners in China and other countries
The Group offers an integrated express delivery service to pick-up outlets of network partners in
China and other countries, such service includes parcel sorting, line-haul transportation,
dispatching and other relevant network management services. The Group generally involves other
outlets of network partners in dispatching. The Group is acting as principal in providing the entire
express delivery service as the Group controls the dispatching services from other outlets of
network partners to integrate into one complete express delivery service and is primarily
responsible for the fulfilment of the express delivery service.
The Group charges pick-up outlets fees based on the parcel’s size, weight, route to the end
recipient’s destination and other factors. The Group satisfies the performance obligation of
express delivery service and recognises revenue over time and uses an output method of progress
based on time-in-transit for express delivery service. The Group generally requires prepayment
of such service fees.
In addition, the Group also earns non-refundable fees for initial operating training and other
initial services to outlets of network partners, and such fees are generally recognized as revenue
when the services are completed.
(ii) Services provided to operating entities of regional sponsors in Indonesia, Thailand, and other
countries
The Group provides network services to operating entities of regional sponsors in Indonesia,
Thailand and other countries, which include providing system support and continuous training,
granting access to the Group’s logos and brand names, and general network arrangement and
oversight services. The Group is not responsible and not acting as principal for relevant express
delivery services regarding orders made by the operating entities of regional sponsors through the
network performed by other operating entities of regional sponsors. The Group charges fees from
– I-30 –
operating entities of regional sponsors based on parcel volumes. The network service is
considered as a series of network management and oversight services as they are substantially the
same and have same pattern of transfer to the customers. The revenue from the network service
is recognized on monthly basis according to monthly fees chargeable to the operating entities of
regional sponsors.
In some routes, the operating entities of regional sponsors will use the sorting centers operated
by the Group, and in such situation, the Group is responsible for the express delivery service
provided by its sorting centers including parcel sorting, line-haul transportation and other
services contained in the service contracts, and charges for such service based on parcel’s size,
weight, route to the end recipient’s destination and other factors. Such express delivery service
is considered a separated performance obligation in addition to the network service. The Group
satisfies the performance obligation of such express delivery service and recognises revenue over
time and uses an output method of progress based on time-in-transit for the express delivery
service.
The Group issues billings on a monthly basis and grants certain credit periods to such operating
entities of regional sponsors.
As mentioned in Note 36 and Note 37, during year 2021 substantially all the operating entities
of regional sponsors in Thailand and Indonesia were acquired by the Group, and after such
acquisitions, the Group directly and substantially provides its integrated express delivery service
to its enterprise or individual customers.
(iii) Services provided to enterprise customers/individual customers
The Group also provides an integrated express delivery service directly to certain
enterprise/individual customers in China, Indonesia, Thailand and other countries, and directly to
enterprise/individual customers in the Philippines, Malaysia, Vietnam and other countries. The
Group involves other outlets of network partners or operating entities of regional sponsors in
pick-up, dispatching and other services. The Group is acting as principal in providing the entire
express delivery service as the Group controls relevant services from other outlets of network
partners or operating entities of regional sponsors to integrate into one complete express delivery
service and is primarily responsible for the fulfilment of the express delivery service.
The Group charges the customers based on parcel’s size, weight, route to the end recipient’s
destination and other factors. The Group generally issues billings on a regular basis and grants
certain credit periods to such customers. The Group satisfies the performance obligation of such
express delivery service and recognises revenue over time and uses an output method of progress
based on time-in-transit for the express delivery service.
(iv) Cash on delivery services
For cash on delivery services, the Group is generally engaged by its customers (normally on-line
shopping platforms or on-line merchants) to collect cash payment for the merchandise from
end-users, then disburse the cash payment to such customers, and charges certain proportion of
the cash payments as service fees as a value-added service on top of the express delivery services.
Generally all of such service contracts include only one performance obligation as normally the
abovementioned or other relevant promises contained in the service contracts are considered to
be not separately identifiable due to the fact that such promises are highly interrelated, and
generally the customer expects the Group to deliver services with integration of such promises.
For cash on delivery services, the Group generally satisfies a performance obligation and
recognises revenue at a point in time once such services are completed.
The Group provides customers with certain volume-based incentives in relation to express delivery services,
which represent variable considerations and are recorded as reductions to the related revenue. The Group
estimates the variable considerations to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognized will not occur. As the incentives are generally determined on a
monthly basis, the uncertainty in estimating the variable considerations to be recorded is very limited.
– I-31 –
(b) Cross-border services
For its cross-border services provided to its customers, the Group is generally acting as principal in
providing cargo or parcel collection, transportation and warehousing, customs clearances, dispatching
and other relevant services to such customers as the Group is primarily responsible for and has control
over the services. A substantial part of such service contracts includes only one performance obligation
as normally the abovementioned or other relevant promises contained in the service contracts are
considered to be not separately identifiable due to the fact that such promises are highly interrelated,
and generally the customer expects the Group to deliver services with integration of such promises.
For such service, the Group generally satisfies a performance obligation and recognises revenue over
time as it transfers control of such service over time, since the customers receive the benefit of the
service as the goods are transported from one location to another. Revenue is recognized based on the
extent of progress towards completion of the performance obligation. The Group uses an output method
of progress based on time-in-transit as it best depicts the transfer of control to the customers.
(c) The Group’s revenue also includes sales of accessories, such as J&T-branded packing supplies and
apparels. Revenue from sales of accessories is recognized when control of the product is transferred to
the customer and in an amount the Group expects to earn in exchange for the product.
(d) Contract assets and liabilities
Contract assets mainly include unbilled receivables resulting from uncompleted services and contract
liabilities mainly include deferred revenue.
2.26 Leases
Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset
is available for use by the Group.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the
contract to the lease and non-lease components based on their relative stand-alone prices.
However, for leases of real estate for which the Group is a lessee, it has elected not to separate lease and
non-lease components and instead accounts for these as a single lease component.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants other than the security interests in the leased assets that
are held by the lessor. Leased assets may not be used as security for borrowing purposes.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index or rate
as at the commencement date
• amounts expected to be payable by the Group under residual value guarantees
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the Group exercising that
option.
Lease payments to be made under reasonably certain extension options are also included in the measurement
of the liability.
– I-32 –
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used,
being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar economic environment with similar terms, security and
conditions.
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing received by the individual lessee as a starting point,
adjusted to reflect changes in financing conditions since third-party financing was received
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held
by the Group, which does not have recent third-party financing, and
• makes adjustments specific to the lease, e.g. term, country, currency and security.
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or
market data) which has a similar payment profile to the lease, then the Group entities use that rate as a starting
point to determine the incremental borrowing rate.
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which
are not included in the lease liability until they take effect. When adjustments to lease payments based on an
index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on
a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life.
Payments associated with short-term leases of logistic equipment and vehicles and all leases of low-value
assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with
a lease term of 12 months or less without a purchase option. Low-value assets comprise IT equipment and
small items of office equipment.
Lease income from operating leases where the Group is a lessor is recognized in income on a straight-line basis
over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying
amount of the underlying asset and recognized as expense over the lease term on the same basis as lease
income. The respective leased assets are included in the balance sheet based on their nature. The Group did
not need to make any adjustments to the accounting for assets held as lessor as a result of adopting the new
leasing standard.
– I-33 –
2.27 Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit or loss attributable to owners of the company, excluding any costs of servicing equity
other than ordinary shares
• by the weighted average number of ordinary shares outstanding during the financial year, adjusted
for bonus elements in ordinary shares issued during the year and excluding treasury shares.
(b) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account:
• the after-income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares, and
• the weighted average number of additional ordinary shares that would have been outstanding
assuming the conversion of all dilutive potential ordinary shares.
2.28 Dividend distribution
Dividend distribution to the Company’s shareholders is recognized as a liability in the Group’s Historical
Financial Information in the period in which the dividends are approved by the Company’s shareholders or
directors, where appropriate.
2.29 Government grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the
grant will be received, and the Group will comply with all attached conditions.
Government grants relating to costs are deferred and recognized in the profit or loss over the period necessary
to match them with the costs that they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives
of the related assets. Note 6 provides further information on how the Group accounts for government grants.
2.30 Interest income
Interest income from financial assets at FVPL is included in the net fair value gains/(losses) on these assets.
Interest income on financial assets at amortised cost and financial assets at FVOCI calculated using the
effective interest method is recognized in profit or loss as part of other income.
Interest income is presented as finance income where it is earned from financial assets that are held for cash
management purposes. Any other interest income is included in other income.
Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial
asset except for financial assets that subsequently become credit impaired. For credit impaired financial assets
the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss
allowance).
– I-34 –
3. FINANCIAL RISK MANAGEMENT
3.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Group’s financial performance. Risk management is carried out by
the senior management of the Group.
(a) Market risk
(i) Foreign exchange risk
The Group’s subsidiaries primarily operate in the PRC, Indonesia, the Philippines, Malaysia,
Thailand, Vietnam and other countries. The transactions of those subsidiaries were generally
settled in local currencies. Therefore, foreign exchange risk primarily arises from recognized
assets and liabilities in the Group’s subsidiaries in the abovementioned countries when receiving
or to receive foreign currencies from, or paying or to pay foreign currencies to overseas business
partners.
For the Group’s subsidiaries whose functional currency is RMB, if RMB had
strengthened/weakened by 5% against USD with all other variables held constant, the loss before
income tax for the years ended December 31, 2020, 2021, and 2022 would have been
approximately USD13,321,774 lower/higher, USD351,097 lower/higher and USD28,924
lower/higher, respectively, as a result of net foreign exchange losses on translation of net
monetary liabilities denominated in USD.
For the Group’s subsidiaries whose functional currency is IDR, if IDR had
strengthened/weakened by 5% against USD with all other variables held constant, the profit
before income tax for the years ended December 31, 2020, 2021 and 2022 would have been
approximately USD6,219,027 higher/lower, USD8,639,005 higher/lower and USD613
monetary liabilities denominated in USD for year 2020 and 2021, and net foreign exchange gains
on translation of net monetary assets denominated in USD for year 2022.
For the Group’s subsidiaries whose functional currency is THB, if THB had
income tax for the years ended December 31, 2020, 2021 and 2022 would have been
approximately USD5,915,480 lower/higher, USD13,217,085 lower/higher and USD1,601
higher/lower, respectively, as a result of net foreign exchange losses on translation of net
For the Group’s subsidiaries whose functional currency is VND, if VND had
income tax for the years ended December 31, 2020 and 2021 would have been approximately
USD6,231,468 lower/higher and USD8,894,412 lower/higher respectively, as a result of net
foreign exchange losses on translation of net monetary liabilities denominated in USD. Relevant
impact for year 2022 is minimal.
For the Group’s subsidiaries whose functional currency is MYR, if MYR had
before income tax for the years ended December 31, 2020 and 2021 would have been
approximately USD2,877,329 higher/lower and USD3,160,759 respectively, as a result of net
foreign exchange losses on translation of net monetary liabilities denominated in USD. Relevant
impact for year 2022 is minimal.
For the Group’s subsidiaries whose functional currency is SGD, if SGD had
income tax for the years ended December 31, 2020, 2021 and 2022 would have been
approximately USD540,012 lower/higher, USD699,682 lower/higher and USD4,556
higher/lower, respectively, as a result of net foreign exchange losses on translation of net
– I-35 –
For the Group’s subsidiaries whose functional currency is PHP, if PHP had
before income tax for the years ended December 31, 2020, 2021, and 2022 would have been
approximately USD2,831,149 lower/higher, USD950,777 lower/higher and USD2,490,294
monetary liabilities denominated in USD.
(ii) Interest rate risk
The Group’s interest rate risk primarily arose from borrowings, loans to third parties, and cash
and cash equivalents. Those carried at floating rates expose the Group to cash flow interest rate
risk whereas those carried at fixed rates expose the Group to fair value interest rate risk.
The Group has limited cash flow interest rate risk as at December 31, 2020, 2021, and 2022, as
substantially all the borrowings and loans to third parties are carried at fixed interest rates.
The exposure of the Group’s borrowings to interest rate changes and the contractual re-pricing
dates of the borrowings at the end of the reporting period are as follows:
% of % of % of
total total total
2020 loans 2021 loans 2022 loans
USD’000 USD’000 USD’000
Variable rate
borrowings – – – – – –
Fixed rate borrowings –
repricing or maturity
dates:
Less than one year 407,143 91% 59,965 67% 77,480 7%
1-2 years 16,922 4% 23,039 26% 38,493 4%
2-5 years 19,995 5% 6,023 7% 982,404 89%
444,060 100% 89,027 100% 1,098,377 100%
The Group regularly monitors its interest rate risk to ensure there is no undue exposure to
significant interest rate movements.
(b) Credit risk
Credit risk arises from cash and cash equivalents, trade receivables, contract assets, restricted cash and
financial assets measured at fair value through profit or loss or included in other receivables and other
assets.
(i) Risk management
The Group manages risk arising from cash and cash equivalents, restricted cash and bank wealth
management products by only conducting transacts with state-owned or reputable financial
institutions, which have no recent history of default.
The Group manages risk arising from trade receivables, contract assets and financial assets
included in other receivables and other assets by only conducting transactions only with
recognized and creditworthy third parties, or with other customers who passed the Group’s
creditability assessment. It is the Group’s policy that all customers who wish to trade on credit
terms or carry out other transactions need to be subject to certain creditability assessment.
The Group manages risk arising from investments included in financial assets measured at fair
value through profit or loss by regularly monitoring of the financial performance and balance
sheet positions of relevant significant investees, and conduct independent creditability
assessment.
– I-36 –
(ii) Impairment of financial assets
The Group has the following types of financial assets that are subject to the expected credit loss
model:
• trade receivables and contract assets from the provision of express delivery services,
cross-border services, sales of accessories, rentals and others; and
• other receivables and other non-current assets
While restricted cash and cash and cash equivalents are also subject to the impairment
requirements of IFRS 9, the identified impairment loss was immaterial.
Trade receivables
The Group applies the IFRS 9 simplified approach to measure expected credit losses which uses
a lifetime expected loss allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables have been grouped based on aging and
shared credit characteristics, which typically vary across countries or regions.
The expected loss rates are based on the historical credit losses and adjusted to reflect current and
forward-looking information on macroeconomic factors affecting the ability of the customers to
settle the receivables. The Group has identified the Gross Domestic Product (“GDP”) and
Consumer Price Index (“CPI”) of the countries in which it provides its services to be the most
relevant factors, and accordingly adjusts the historical loss rates based on expected changes in
these factors.
On that basis, the loss allowance as at December 31, 2020, 2021, and 2022 was determined as
follows for trade receivables:
China
As at December 31, Within 3-6 6-9 9-12 Above

2020 3 months months months months 12 months Total
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Expected loss rate 1.45% 22.00% 47.12% 92.86% N/A

Gross amount 19,651 1,518 556 14 – 21,739
Loss allowance 284 334 262 13 – 893

Expected loss rate

Reputable customers
(i) 1.39% N/A N/A N/A N/A
Other customers (i) 5.53% 25.11% 59.96% 83.48% 100.00%
Terminated
customers (credit
impaired) (ii) 100.00% 100.00% N/A N/A N/A
Gross amount
Reputable customers 10,022 – – – – 10,022
Other customers 105,843 7,324 5,058 2,185 2,595 123,005
Terminated
customers (credit
impaired) 15,021 8,404 – – – 23,425
Total gross amount 130,886 15,728 5,058 2,185 2,595 156,452
– I-37 –

Loss allowance
Reputable customers 139 – – – – 139
Other customers 5,850 1,839 3,033 1,824 2,595 15,141
Terminated
customers (credit
impaired) 15,021 8,404 – – – 23,425
Total loss allowance 21,010 10,243 3,033 1,824 2,595 38,705

Expected loss rate

Reputable customers
(i) N/A N/A 1.87% 86.05% N/A
Other customers (i) 2.07% 22.81% 61.26% 87.75% 100.00%
Terminated
customers (credit
impaired) (ii) N/A N/A N/A 100.00% 100.00%
Gross amount
Reputable customers – 20 482 86 – 588
Other customers 205,787 5,889 573 2,996 493 215,738
Terminated
customers (credit
impaired) – – – 1,533 29,135 30,668
Total gross amount 205,787 5,909 1,055 4,615 29,628 246,994
Loss allowance
Reputable customers – 32 9 74 – 115
Other customers 4,257 1,343 351 2,629 493 9,073
Terminated
customers (credit
impaired) – – – 1,533 29,135 30,668
Total loss allowance 4,257 1,375 360 4,236 29,628 39,856
(i) In China, the Group categorised the customers as per the size of their capitals, transaction
volumes, as well as historical settlement and etc.
(ii) After the acquisition of Best Inc.’s express business in China in December 2021 (Note 38),
as a result of the Group’s business integration plan and further commercial negotiations,
the Group ended business relationships with certain network partners from Best Inc.’s
express business in China, consequently, the Group assessed the credit loss for such
customers separately as the credit risk profile is different from other customers.
– I-38 –
South-East Asia

Expected loss rate 1.87% 24.78% 53.02% 93.41% 100.00%

Gross amount 156,241 8,665 149 91 198 165,344
Loss allowance 2,921 2,147 79 85 198 5,430


Gross amount 216,443 4,354 244 240 1,275 222,556
Loss allowance 3,236 984 135 223 1,275 5,853


Gross amount 235,995 2,798 647 388 1,231 241,059
Loss allowance 3,776 781 372 333 1,231 6,493
Others

Expected loss rate 2.96% – – – –

Gross amount 439 – – – – 439
Loss allowance 13 – – – – 13

Expected loss rate 1.18% – – – –

Gross amount 73,113 – – – – 73,113
Loss allowance 863 – – – – 863
– I-39 –
The loss allowances for trade receivables as at December 31, reconcile to the opening loss
allowances as follows:
Trade receivables
2020 2021 2022
USD’000 USD’000 USD’000
Opening loss allowance as at

January 1, 2,695 6,323 44,571
Impairment losses recognized,
net of reversal 3,694 39,004 34,997
Bad debt write-offs – – (32,166)
Exchange difference (66) (756) (190)
Closing loss allowance as at

December 31, 6,323 44,571 47,212
The Group writes off a trade receivable when there is information indicating that the debtor is in
severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has
been placed under liquidation or has entered into bankruptcy proceedings.
Impairment losses on trade receivables are presented as net impairment losses within operating
loss. Subsequent recoveries of amounts previously written off are credited against the same line
item.
Other receivables and other non-current assets
The Group determines the credit risk of its other receivables and other non-current assets basing
on factors including historical experience, internal/external credit rating, overdue status and
nature of relevant other receivables and other non-current assets, and also other forward-looking
information including macroeconomic factors.
Impairment on other receivables and other non-current assets is measured as either 12-month
expected credit losses or lifetime expected credit loss, depending on whether there has been a
significant increase in credit risk since initial recognition. If a significant increase in credit risk
of a receivable has occurred since initial recognition, then impairment is measured as lifetime
expected credit losses.
On that basis, the loss allowance as at December 31, 2020, 2021, and 2022 was determined as
follows for other receivables and other non-current assets:
Gross Gross Gross

Expected carrying carrying carrying
Risk rating as at credit loss amount at amount at amount at
December 31, 2020 rate default default default
(stage 1) (stage 2) (stage 3)
Low risk 0.97% 714,654 N/A N/A

Moderate risk 5.46% 1,777 N/A N/A
High risk and credit
impaired N/A N/A N/A N/A
– I-40 –
Gross Gross Gross

Low risk 0.91% 537,137 N/A N/A

Moderate risk 10.89% 21,851 N/A N/A
impaired 100.00% N/A N/A 1,925
Gross Gross Gross

Low risk 1.21% 189,959 N/A N/A

Moderate risk N/A N/A N/A N/A
impaired N/A N/A N/A N/A
As at December 31, 2020, minimal credit risk was identified for the receivable of Series A
Preferred Share consideration (Note 28). As at December 31, 2021, minimal credit risk was
identified for the receivable of Series C2 Preferred Share consideration.
Based on the management’s experience and expectation, the deposits and cash on delivery related
receivables were also exposed to minimal credit risk as at December 31, 2020, 2021, and 2022.
The above receivables with minimal credit risk are classified as stage one.
The loss allowance for other receivables and other non-current assets at amortised cost as at
December 31, reconciles to the opening loss allowance as follows:
Loans to Receivables
related of Series C1
parties and Preferred
third parties Shares Others Total
USD’000 USD’000 USD’000 USD’000
Opening loss
allowance as at
January 1, 2020 1,054 – 198 1,252
Increase in the
allowance recognized
in profit or loss
during the year 5,511 – 283 5,794
Exchange difference (14) – (2) (16)
Closing loss
allowance as at
December 31, 2020 6,551 – 479 7,030
– I-41 –
Loans to Receivables
related of Series C1
parties and Preferred
third parties Shares Others Total
USD’000 USD’000 USD’000 USD’000
Increase in the
allowance recognized
in profit or loss
during the year 1,394 380 542 2,316
Exchange difference (120) – (42) (162)
Closing loss
allowance as at
December 31, 2021 7,825 380 979 9,184
(Decrease)/Increase in
the allowance
recognized in profit
or loss during the
year (6,364) (369) 8,955 2,222
Write-offs – – (8,942) (8,942)
Exchange difference (68) (11) (86) (165)
Closing loss
allowance as at
December 31, 2022 1,393 – 906 2,299
Net impairment losses on financial assets recognized in profit or loss
During the Track Record Period, the following losses were recognized in profit or loss in relation
to impaired financial assets:

2020 2021 2022
USD’000 USD’000 USD’000
Impairment losses
Movement in loss allowance for
trade receivables 3,694 39,004 34,997
Movement in loss allowance for
other receivables and other non-
current assets 5,794 2,316 2,222
Impairment losses on financial

assets at amortised cost 9,488 41,320 37,219
(iii) Financial assets at fair value through profit or loss
The entity is also exposed to credit risk in relation to debt investments that are measured at fair
value through profit or loss. The maximum exposure at the end of the reporting period is the
carrying amount of these investments.
– I-42 –
(c) Liquidity risk
The Group aims to maintain sufficient cash and cash equivalents. Due to the dynamic nature of the
underlying business, the policy of the Group is to regularly monitor the Group’s liquidity risk and to
maintain adequate cash and cash equivalents or adjust financing arrangements to meet the Group’s
liquidity requirements.
The table below analyses the Group’s non-derivative financial liabilities into relevant maturity grouping
based on the remaining period at each balance sheet date to the contractual maturity date. The amounts
disclosed in the table are the contractual undiscounted cash flows, except for financial liabilities at fair
value through profit or loss that are disclosed at fair value.
Between Between
Less than 1 and 2 2 and 5 More than
Non-derivatives 1 year years years 5 years Total
USD’000 USD’000 USD’000 USD’000 USD’000
As at December 31, 2020

Borrowings 408,375 13,219 20,610 – 442,204
Trade payables 225,452 – – – 225,452
Accruals and other
payables (excluding
salary and welfare
payables, tax payables
and other non-financial
liabilities) 217,742 – – – 217,742
Advances from customers 137,224 – – – 137,224
Lease liabilities 65,008 69,137 46,904 7,335 188,384
Financial liabilities at fair
value through profit or
loss – – – 1,812,915 1,812,915
Total 1,053,801 82,356 67,514 1,820,250 3,023,921
Between Between

Borrowings 61,185 25,594 6,293 – 93,072
Trade payables 577,065 – – – 577,065
Accrued and other
payables (excluding
salary and welfare
payables, tax payables
and other non-financial
liabilities) 646,915 – – – 646,915
loss – – 10,424,409 – 10,424,409
Financial liabilities –
ordinary shares
redemption liabilities 133,749 – – – 133,749
redemption liabilities of
shares of JNT KSA – – 60,000 – 60,000
Total 1,922,231 176,641 10,694,571 44,735 12,838,178
– I-43 –
Between Between

Borrowings 79,212 39,913 1,005,558 – 1,124,683
Trade payables 484,215 – – – 484,215
Accrued and other
payables (excluding
salary and welfare
payables and other tax
payables) 533,856 – – – 533,856
loss – – 7,765,067 – 7,765,067
redemption liabilities of
shares of JNT KSA – – 60,000 – 60,000
Total 1,461,656 180,035 8,987,917 51,405 10,681,013
In addition, as at December 31, 2021, derivative financial liabilities with an carrying amount of
USD62,897,000 represents the difference between the carrying amount (fair value) of relevant preferred
shares to be repurchased and the repurchase consideration (Note 26 (v)), with total contractual amount
of USD244,839,000, and such repurchase was completed in 2022.
Details of the description of financial liabilities at fair value through profit or loss are presented in
Note 29.
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to enhance shareholders’ value in the long-term.
The Group monitors capital (including share capital, share premium and convertible preferred shares on an
as-if-converted basis) by regularly reviewing the capital structure. As a part of this review, the Group considers
the cost of capital and the risks associated with the issued share capital. The Group may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or repurchase the Company’s
shares. In the opinion of the directors of the Company, the Group’s capital risk is relatively low, as a substantial
part of its total liabilities as at December 31, 2020, 2021, and 2022 were financial liabilities at fair value
through profit or loss, substantially representing the Company and its subsidiaries’ preferred shares, which will
not contractually become redeemable within the next 12-month period after December 31, 2020, 2021, or 2022.
The asset-liability ratios of the Group as at December 31, 2020, 2021, and 2022 are as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Total assets 2,243,040 6,544,642 5,935,559

Asset-liability ratio 138.8% 201.4% 184.0%
– I-44 –
Asset-liability ratio is calculated by dividing total liabilities by total assets and multiplying by 100%. The
increase of asset-liability ratio in 2021 is mainly due to the increase of the Company’s value, according to
which the fair value change of financial liabilities at fair value through profit or loss significantly increased.
The increase of asset-liability ratio in 2022 is mainly due to the increasing in borrowings as a result of the
Group’s financing activities.
3.3 Fair value estimation
Fair value hierarchy
The table below analyses the Group’s financial instruments carried at fair value as at each balance sheet date,
by level of the inputs to valuation techniques used to measure fair value. Such inputs are categorised into three
levels within a fair value hierarchy as follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and.
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs) (level 3).
The following table presents the Group’s assets and liabilities that are measured at fair value on December 31,
2020:
Level 1 Level 2 Level 3 Total

USD’000 USD’000 USD’000 USD’000
Assets
Short-term investments measured at
fair value through profit or loss
(Note 24) – 71,324 – 71,324
Liabilities
Financial liabilities at fair value
through profit or loss (Note 29) – – 1,812,915 1,812,915
2021:

USD’000 USD’000 USD’000 USD’000
Assets
Short-term investments measured at
fair value through profit or loss
(Note 24) – 41,581 – 41,581
Liabilities
– I-45 –
2022:

USD’000 USD’000 USD’000 USD’000
Assets
Non-current financial assets at fair
value through profit or loss (Note 24) – – 481,050 481,050
Short-term investments measured at fair
value through profit or loss (Note 24) – 16,440 – 16,440
– 16,440 481,050 497,490
Liabilities
(a) Financial instruments in level 1
The fair value of financial instruments traded in active markets is based on quoted market prices at each
of the reporting dates. A market is regarded as active if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices
represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market
price used for financial assets held by the Group is the current bid price. These instruments are included
in level 1.
(b) Financial instruments in level 2
The fair value of financial instruments that are not traded in an active market (for example,
over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as little as possible on entity
specific estimates. If all significant inputs required to fair value of an instrument are observable, the
instrument is included in level 2.
For the years ended December 31, 2020, 2021, and 2022, level 2 instruments of the Group’s assets
mainly include wealth management products offered by banks, classified as financial assets at fair value
through profit or loss.
(c) Financial instruments in level 3
If one or more of the significant inputs are not based on observable market data, the instrument is
included in level 3.
Specific valuation techniques used to value financial instruments include:
• Discounted cash flow model and unobservable inputs mainly including assumptions of expected
future cash flows and discount rate; and
• A combination of observable and unobservable inputs, including risk-free rate, expected

volatility, discount rate for lack of marketability, market multiples, etc.
For the years ended December 31, 2020 and 2021, level 3 instruments of the Group’s liabilities mainly
included convertible preferred shares (Note 29).
– I-46 –
For the years ended December 31, 2022, level 3 instruments of the Group’s assets included the Group’s
investments in Windfall T&L SPC and the convertible bonds of Huisen Global Limited (Note 24), and
liabilities mainly included convertible preferred shares (Note 29).
There were no transfers between level 1, 2 and 3 of fair value hierarchy classifications during the years
ended December 31, 2020, 2021, and 2022.
The carrying amounts of the Group’s financial assets including cash and cash equivalents, restricted
cash, trade receivables, other receivables, other assets and other non-current assets, and the Group’s
financial liabilities, including borrowing, trade payables, lease liabilities, advances from customers,
financial liabilities – ordinary share redemption liabilities, financial liabilities – redemption liabilities
of shares of JNT KSA, accruals and other payables, approximate their fair values due to their short
maturities or that the contract interest rates (if applicable) are generally close to the market interest
rates.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of Historical Financial Information requires the use of accounting estimates which, by
definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the
Group’s accounting policies.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity and that are believed to
be reasonable under the circumstances.
(a) Consolidation of affiliated entities
The Group conducts a substantial part of the business in countries including the PRC, Indonesia, Thailand, the
Philippines, and Vietnam, where there are certain regulatory restrictions on foreign ownerships in express
delivery and relevant businesses. The Group has entered into certain contractual arrangements with relevant
local entities and their respective registered shareholders, or certain agreements or constitutional documents
with non-controlling shareholders of relevant local entities where the Company is holding less than 50% of
their equity interests. The directors of the Company determine that the Group is able to control such entities
by assessing and concluding that the Group has the rights to exercise power over such entities, to receive
variable returns from its involvement in such entities, and has the ability to affect those returns through its
power over such entities. Consequently, the Company consolidates the assets, liabilities and results of
operations of such entities in the consolidated financial information of the Group.
Nevertheless, uncertainties presented by the local legal system could impede the Group’s beneficiary rights in
the results, assets and liabilities of the local entities. The directors of the Company, based on the advice of its
legal counsels, have exercised judgement and consider that the abovementioned contractual arrangements,
relevant agreements or constitutional documents are in compliance with relevant local laws and regulations,
and are legally binding and enforceable.
(b) Impairment of financial assets
The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates.
The Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation,
based on the Group’s past history, existing market conditions, as well as forward-looking estimates at the end
of each reporting period. Details of the key assumptions and inputs used are disclosed in the tables in Note 3.1.
(c) Fair value of ordinary shares, preferred shares, and financial assets at fair value through profit or loss
The ordinary shares and preferred shares issued by the Company and the Group’s financial assets at fair value
through profit or loss are not traded in an active market and the respective fair value is substantially determined
by using valuation techniques. During the Track Record Period, the Company appointed an external valuer to
provide assistance in the valuation of the fair value of relevant ordinary shares, preferred shares and financial
assets at fair value through profit or loss. The discounted cash flow method is normally adopted to determine
the underlying equity value of the Company or relevant business, and equity allocation model is adopted to
determine the fair value of the preferred shares of the Company. Key assumptions, such as discount rate, lack
of marketability discount and volatility are disclosed in Note 24, Note 29, Note 35, Note 36 and Note 37.
– I-47 –
(d) Current and deferred income taxes
The Group is subject to income taxes in different jurisdictions. Significant judgement is required in
determining the worldwide provision for income taxes. There are many transactions and calculations for which
the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues
based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact the current and deferred
income tax assets and liabilities in the period in which such determination is made.
For temporary differences which give rise to deferred tax assets, the Group assesses the likelihood that the
deferred income tax assets could be recovered. Deferred tax assets are recognized based on the Group’s
estimates and assumptions that they will be recovered from taxable income arising from continuing operations
in the foreseeable future.
(e) Impairment of goodwill and other non-financial assets
The Group tests annually, or more frequently if events or changes in circumstances indicate that they might
be impaired, whether goodwill has suffered any impairment. Other assets are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable
amount is determined as higher of fair value less costs of disposal and value in use amount. These calculations
require use of estimates.
For the purposes of determining the value in use of cash-generating unit or group of cash-generating units,
expected cash flows generated by relevant assets are discounted to their present value, which requires
significant estimates related to growth rate, gross margin, discount rate and other factors in the cash flow
projection. Fair value less costs of disposal is calculated by benchmarking against the price quotation of a
comparable model in the second-hand market, adjusting the estimated disposal costs.
The revision to the major assumptions adopted may result in recognition of impairment against goodwill, and
recognition or reversal of impairment against other non-financial assets.
(f) Recognition of identifiable net assets acquired in business combinations and useful lives of customer
relationship
During the Track Record Period, the Group completed several business combinations, details of which are set
out in Note 36, Note 37 and Note 38. In accordance with IFRS 3, the identifiable net assets acquired are to
be measured at fair value at the acquisition date to determine the difference between the cost of business
combinations and the fair value of the net assets attributable to the Group acquired, which should be
recognized as goodwill on the consolidated balance sheets.
In the absence of an active market for the above acquisition transaction undertaken by the Group, the directors
of the Company made estimates from a variety of sources, in order to determine the fair value of identifiable
net assets acquired. For the fair value of the intangible assets of customer relationships and property, plant and
equipment, the directors of the Company made their estimates with reference to valuation results assessed by
an external valuer appointed by the Company. The determination of fair value of net assets acquired requires
estimates and judgements.
The Group determines the estimated useful lives and consequently the related amortisation charges for such
acquired customer relationship. These estimates are based on the relevant industry and historical experience
if applicable of the actual useful lives of customer relationship of similar nature and functions. Management
will increase the amortisation charges where useful lives are less than previously estimated lives. Actual
economic lives may differ from estimated useful lives. Periodic review could result in a change in amortisable
lives and therefore amortisation expenses in future periods.
– I-48 –
5. REVENUE AND SEGMENT INFORMATION
(a) Description of segments and principal activities
The chief operating decision maker has been identified as the Chief Executive Officer (the “CEO”).
The CEO examines the Group’s performance from a geographic perspective and has identified three reportable
segments of its business generally basing on territories in which the Group operates.
The CEO assesses the performance of the abovementioned segments mainly based on segment revenue,
segment gross (loss)/profit, and segment adjusted EBITDA.
The abovementioned adjusted EBITDA is defined as net profit or loss to exclude the following items (the
“Adjustments”):
• Income tax expense
• Finance income/costs – net
• Depreciation and amortisation
• Share-based compensation expenses – employee benefit expenses
• Share-based compensation expenses – related to equity transactions
• Fair value change of financial assets and liabilities at fair value through profit or loss
• Other gains, expenses or losses the Group and the CEO deem to be one-off
During the Track Record Period, certain expenses, gains and losses incurred at corporate and holding
companies’ level including the Company, the BVI Holdco and the HK Holding, were defined as un-allocated
items.
The revenue from external customers is measured as segment revenue, which is the revenue derived from the
customers in each operating segment respectively.
(b) Segment information
The geographical segment information for the years ended December 31, 2020, 2021, and 2022 is as follows:

South-East
China Asia Others Total
USD’000 USD’000 USD’000 USD’000
Segment revenue 478,847 1,046,504 10,074 1,535,425

Segment cost of revenue (1,055,581) (734,551) (6,781) (1,796,913)
Segment gross profit/(loss) (576,734) 311,953 3,293 (261,488)
Adjusted segment EBITDA (616,227) 266,561 1,652 (348,014)
Unallocated 26,851
Total EBITDA (321,163)
– I-49 –

South-East
USD’000 USD’000 USD’000 USD’000
Segment revenue 2,181,368 2,377,544 292,888 4,851,800

Segment cost of revenue (3,400,061) (1,715,413) (281,070) (5,396,544)
Segment gross profit/(loss) (1,218,693) 662,131 11,818 (544,744)
Adjusted segment EBITDA (939,695) 427,436 (14,028) (526,287)
Unallocated (1,844)

South-East
USD’000 USD’000 USD’000 USD’000
Segment revenue 4,096,177 2,381,726 789,525 7,267,428

Segment cost of revenue (4,760,937) (1,905,724) (871,005) (7,537,666)
Segment gross profit/(loss) (664,760) 476,002 (81,480) (270,238)
Adjusted segment EBITDA (334,906) 331,582 (168,789) (172,113)
Unallocated (32,329)

2020 2021 2022
USD’000 USD’000 USD’000
Adjusted EBITDA
China (616,227) (939,695) (334,906)
South-East Asia 266,561 427,436 331,582
Others 1,652 (14,028) (168,789)
Un-allocated 26,851 (1,844) (32,329)
Total adjusted EBITDA (321,163) (528,131) (204,442)

Adjustments:
Depreciation and amortization (97,302) (220,489) (505,947)
Share-based compensation expenses – related
to employee benefit expenses (Note 8) (161,073) (382,594) (244,104)
Impairment of long-term assets
(Note 15, Note 17) – (250,292) (219,080)
Impairment of goodwill (Note 17) – – (117,502)
Finance costs (13,831) (99,077) (99,499)
Other Integration cost – – (45,864)
Share-based compensation expenses -related to
equity transactions (Note 9) (27,229) (236,418) (37,262)
Income tax expense (45,530) (73,126) (10,763)
– I-50 –

2020 2021 2022
USD’000 USD’000 USD’000
Other compensation expenses – in relation to

the acquisition of Best Inc.’s express
business in China (Note 8) – (16,027) (5,306)
Finance income 1,965 9,476 22,002
Fair value change of financial assets and
liabilities at fair value through profit or loss – (4,383,532) 3,050,694
The total of non-current assets other than financial instruments and deferred tax assets, broken down by
location of the assets, are shown in the following table:

2020 2021 2022
USD’000 USD’000 USD’000
China 281,236 1,941,342 1,544,461

South-East Asia 281,737 867,640 830,038
Others 1,932 52,176 145,548
564,905 2,861,158 2,520,047
During the Track Record Period, Revenues of the Group derived from single external customers which
accounts for over 10% of the Group’s revenue are shown in the following table:

2020 2021 2022
USD’000 % USD’000 % USD’000 %
Customer A 542,963 35% 1,715,398 35% 1,231,324 17%
(c) Revenue during the Track Record Period

2020 2021 2022
USD’000 USD’000 USD’000
Type of revenue:
Express delivery services 1,482,476 4,570,732 6,480,300
Cross-border services 9,519 234,761 710,450
Rental income 8,036 10,163 44,391
Sale of accessories 34,166 30,350 23,730
Others 1,228 5,794 8,557
1,535,425 4,851,800 7,267,428
– I-51 –

2020 2021 2022
USD’000 USD’000 USD’000
Timing of revenue recognition:

Overtime 1,437,525 4,732,225 7,102,996
A point in time 89,864 109,412 120,041
Rental income 8,036 10,163 44,391
1,535,425 4,851,800 7,267,428
6. OTHER INCOME

2020 2021 2022
USD’000 USD’000 USD’000
Subsidy income 11,466 71,415 87,035

Interest income on loans to related parties 1,305 4,412 10,175
Interest income on loans to third parties 4,285 6,715 939
17,056 82,542 98,149
The subsidy incomes were mainly related to incentives provided by governments in the PRC based on the
amounts of value added tax paid, and subsidies provided by local governments for economic recovery plans
in South East Asian countries. The Group has received all the subsidy incomes in full and there was no future
obligation related to these subsidy incomes.
7. OTHER GAINS/(LOSSES) – NET

2020 2021 2022
USD’000 USD’000 USD’000
Provisions for legal claims – – (19,330)

Exchange gains/(losses) – net 29,362 19,887 (17,338)
Net loss on disposal of property, plant and
equipment (37) (1,424) (1,873)
Others (1,851) 7,907 (1,705)
27,474 26,370 (40,246)
8. EMPLOYEE BENEFIT EXPENSES

2020 2021 2022
USD’000 USD’000 USD’000
Salaries and bonuses 395,642 935,834 939,117

Pension cost – defined contribution plans 12,092 37,259 39,132
Share-based compensation expenses (Notes 26 (i)
(ii), (iii)) 161,073 382,594 244,104
Other compensation expenses (i) – 16,027 5,306
Medical and other benefits 22,193 64,138 62,670
591,000 1,435,852 1,290,329
– I-52 –
(i) After the acquisition of Best Inc.’s express business in China (Note 38), as part of the Group’s
integration plan, the Group offered certain compensation packages to the staffs from Best Inc.’s express
business in China who had chosen to end the employment with the Group. As a result, relevant accruals
with an amount of USD16,027,000 were made for such purposes.
9. EXPENSES BY NATURE

2020 2021 2022
USD’000 USD’000 USD’000
Employee benefit expenses (Note 8) 591,000 1,435,852 1,290,329

Fulfillment costs 820,139 2,385,225 3,320,187
Other labour costs 96,685 310,959 402,694
Line-haul costs 368,172 1,341,433 2,221,664
Depreciation and amortization (Note 34 (a)) 97,302 220,489 505,947
Materials 59,518 97,087 107,568
Share-based compensation expenses – related to
equity transactions (Notes 26 (iv), (v), (vi),
(vii)) 27,229 236,418 37,262
Short-term leases 21,146 59,730 124,377
Auditors’ remuneration 249 1,465 2,252
Advertising and marketing expenses 18,051 18,535 25,188
Impairment of long-term assets (Note 15,
Note 17) – 250,292 219,080
Impairment of goodwill (Note 17) – – 117,502
Others 77,420 197,066 293,267
2,176,911 6,566,599 8,677,677
10. FINANCE COSTS – NET

2020 2021 2022
USD’000 USD’000 USD’000
Finance income
Interest income from bank deposits 1,965 9,476 22,002
Finance costs
Interest expenses on convertible preferred shares
(Note 43) – (81,602) –
Interest expenses on lease liabilities (Note 16) (6,007) (13,860) (37,318)
Interest expenses on borrowings
Includes: Interest expense on borrowings from
financial institutions (34) (195) (54,902)
Interest expense on borrowings from related
parties (4,843) (642) (17)
Interest expense on borrowings from third
parties (2,947) (2,778) (7,262)
Total finance costs (13,831) (99,077) (99,499)
Finance costs – net (11,866) (89,601) (77,497)
– I-53 –
11. NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS

2020 2021 2022
USD’000 USD’000 USD’000
Impairment losses recognized, net of reversal,

on:
– trade receivables 3,694 39,004 34,997
– other receivables and other non-current
assets 5,794 2,316 2,222
9,488 41,320 37,219
12. INCOME TAX EXPENSE
The amount of income tax charged to the consolidated income statements represents:

2020 2021 2022
USD’000 USD’000 USD’000
Current tax on profits for the year 46,422 66,042 56,183

Deferred income tax (Note 30) (892) 7,084 (45,420)
45,530 73,126 10,763
Taxes on profits assessable have been calculated at the rates of tax prevailing in the jurisdictions in which
relevant entities operate.
(i) Cayman Islands profits tax
The Company was incorporated in the Cayman Islands as an exempted company with limited liability under
the Companies Law (Law 3 of 1961, as consolidated and revised) of the Cayman Islands and is exempted from
payment of the Cayman Islands income tax.
(ii) British Virgin Islands (“BVI”) profits tax
The Company’s subsidiaries incorporated in the BVI are exempted from BVI income tax, as they are
incorporated under the International Business Companies Act of the BVI.
(iii) Hong Kong profits tax
The Company’s subsidiaries incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of 8.25%
on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000 for
the Track Record Period.
(iv) PRC corporate income tax (“PRC CIT”)
The Group’s subsidiaries in the PRC are subject to PRC CIT which is calculated based on the applicable tax
rate of 25% on the assessable profits of the subsidiaries in accordance with PRC tax laws and regulations for
the Track Record Period, except for disclosed below.
– I-54 –
The Group’s subsidiary, Shenzhen Yunlu Information Technology Co., Ltd. is qualified as a software enterprise
under the relevant laws and regulations in the PRC. Accordingly, it is exempted from PRC CIT for two years
since the first profit-making year, followed by a 50% reduction in the PRC CIT tax rate of 25% for the next
three years.
Besides, certain Group’s subsidiaries benefit from a preferential tax rate of 15% under the CIT Law if they are
qualified as high and new technology enterprises under relevant regulations or located in applicable PRC
regions, such as certain western regions and special economic zone, as specified in the relevant catalogue of
encouraged industries, subject to certain general restrictions described in the CIT Law and the related
regulations.
For the Track Record Period, several subsidiaries in the PRC were qualified as small and micro enterprises
under the PRC CIT regime, which enjoyed a 50%-87.5% reduction in certain statutory taxable income, with
a preferential income tax rate of 20%.
(v) Indonesia corporate income tax (“Indonesia CIT”)
The Group’s subsidiaries in Indonesia are subject to Indonesia CIT which is calculated based on the applicable
tax rate of 22% on the assessable profits of the subsidiaries in accordance with Indonesia tax laws and
regulations for the Track Record Period.
(vi) Malaysia corporate income tax (“Malaysia CIT”)
The Group’s subsidiaries in Malaysia are subject to Malaysia CIT which is calculated based on the applicable
tax rate of 24% on the assessable profits of the subsidiaries in accordance with Malaysia tax laws and
(vii) Vietnam corporate income tax (“Vietnam CIT”)
The Group’s subsidiaries in Vietnam are subject to Vietnam CIT which is calculated based on the applicable
tax rate of 20% on the assessable profits of the subsidiaries in accordance with Vietnam tax laws and
(viii) Thailand corporate income tax (“Thailand CIT”)
The Group’s subsidiaries in Thailand are subject to Thailand CIT which is calculated based on the applicable
tax rate of 20% on the assessable profits of the subsidiaries in accordance with Thailand tax laws and
(ix) The Philippines corporate income tax (“the Philippines CIT”)
For the six months period ended June 30, 2020, the Group’s subsidiaries in the Philippines are subject to the
Philippines CIT which is calculated based on the applicable tax rate of 30% on the assessable profits of the
subsidiaries in accordance with the Philippines tax laws and regulations. The applicable CIT tax rate has been
decreased from 30% to 25% since July 1, 2020.
(x) Withholding income tax
As at December 31, 2020, the Group’s business was still in a loss position except for the business in Indonesia
and the Philippines. As at December 31, 2021, the Group’s major business is still in a loss position except for
the business in Indonesia, the Philippines and Malaysia. As at December 31, 2022, the Group’s major business
is still in a loss position except for the business in Indonesia and the Philippines.
According to the Indonesia CIT Law, a 20% withholding tax will be levied on the immediate holding
companies established outside Indonesia when their Indonesian subsidiaries declare dividends out of their
profits, and the rate could be lowered to 5% when certain conditions are met in accordance with Hong Kong
– Indonesia Double Tax Treaty.
– I-55 –
During the years ended December 31, 2020, 2021, and 2022, no dividend withholding tax for Indonesia
companies was provided as the directors have confirmed that the Group does not expect those subsidiaries to
distribute the retained earnings as at December 31, 2020, 2021, and 2022 in the foreseeable future. Unremitted
earnings that deferred income tax liabilities have not been recognized totalled USD73,237,000,
USD148,332,000, and USD213,917,000 as at December 31, 2020, 2021, and 2022, respectively.
According to the Philippine CIT Law, withholding tax will be levied on the immediate holding companies
established outside the Philippines when their Philippine subsidiaries declare dividends out of their profits.
The withholding tax rates are 15% or 30% for the year ended December 31, 2020, and 15% or 25% for the
years ended December 31, 2021 and 2022.
During the years ended December 31, 2020, 2021, and 2022, no dividend withholding tax for the Philippine
companies was provided as the directors have confirmed that the Group does not expect those subsidiaries to
distribute the retained earnings as at December 31, 2020, 2021, and 2022 in the foreseeable future. Unremitted
earnings that deferred income tax liabilities have not been recognized totalled USD40,986,000,
USD84,471,000 and USD113,742,000 as at December 31, 2020, 2021, and 2022, respectively.
According to the Malaysia CIT Law, Malaysia has no withholding tax on dividends in addition to tax on the
profits out of which the dividends are declared.
The difference between the actual income tax expense charged to the consolidated income statements and the
amounts which would result from applying the enacted tax rates to (loss)/profit before income tax can be
reconciled as follows:

2020 2021 2022
USD’000 USD’000 USD’000
(Loss)/profit before income tax (618,633) (6,119,132) 1,583,330
Income tax expenses calculated at applicable tax

rates (109,943) (296,547) (254,488)
Additional deduction of research and
development expense (1,966) (4,681) (403)
Costs, expenses and losses not deductible for tax
purposes 3,288 6,649 16,019
Previously unrecognized tax losses and
deductible temporary differences utilised (5,041) (820) (63,153)
Previously unrecognized tax losses and
deductible temporary differences recognized as
deferred tax assets (3,949) – (27,404)
Deductible temporary differences for which no
deferred tax asset was recognized 901 63,602 3,907
Tax losses for which no deferred tax asset was
recognized 162,240 304,923 336,285
45,530 73,126 10,763
– I-56 –
13. EARNINGS/(LOSS) PER SHARE
(a) Basic
Basic earnings/(loss) per share is calculated by dividing the loss attributable to owners of the Company by the
weighted average number of ordinary shares and preferred shares outstanding during the financial year.

2020 2021 2022
Net (loss)/profit attributable to owners of the

Company (USD’000) (564,836) (6,046,983) 1,656,168
Weighted average number of shares (thousands):

Ordinary Shares outstanding 275,410 – –
Class A Ordinary Shares outstanding 25,862 343,606 432,651
Class B Ordinary Shares outstanding 18,859 170,754 171,811
Series Pre-A1 Preferred Shares outstanding 70,383 – –
Series Pre-A2 Preferred Shares outstanding 51,153 – –
Series A Preferred Shares outstanding 154,135 – –
Total weighted average number of shares

outstanding 595,802 514,360 604,462
Basic (loss)/earnings per share (USD cent) (94.8) (1,175.6) 274.0
As Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares and Series A Preferred Shares have the
same dividend entitlement as the Class A and Class B Ordinary Shares, these preferred shares are included in
total weighted average number of shares outstanding for the purpose of the calculation of basic loss per share,
before reclassifying from equity to financial liabilities at fair value through profit or loss on December 30,
2020 (Note 29).
(b) Diluted
The calculation of the diluted earnings/(loss) per share is based on the profit/(loss) attributable to equity
holders of the Company, adjusted to reflect the impact from any dilutive potential ordinary shares that would
have been outstanding, as appropriate. The weighted average number of ordinary shares used in calculating
diluted earnings/(loss) per share is the weighted average number of ordinary shares, as used in the basic
earnings/(loss) per share calculation, and the weighted average number of ordinary shares assumed to have
been issued at no consideration on the deemed exercise or conversion of all dilutive potential ordinary shares
into ordinary shares.
The Group has four (2021: three; 2020: one) categories of potential ordinary shares, namely convertible
preferred shares of the Company, Series A Preferred Shares of JET Global (Note 29), shares of JNT KSA (Note
26) and ordinary shares with vesting schedule granted to network partners (Note 26) (2021: convertible
preferred shares of the Company, Series A Preferred Shares of JET Global and shares of JNT KSA; 2020:
convertible preferred shares of the Company). Convertible preferred shares were dilutive for the year ended
December 31, 2022, and were anti-dilutive for the years ended December 31, 2021 and 2020. Series A
Preferred Shares of JET Global and shares of JNT KSA were anti-dilutive for the years ended December 31,
2022 and 2021. Ordinary shares with vesting schedule granted to network partners were anti-dilutive for the
year ended December 31, 2022.
– I-57 –

2020 2021 2022

Company (USD’000) (564,836) (6,046,983) 1,656,168
Adjustment for fair value change of the
Company’s convertible preferred shares
through profit or loss – – (3,352,590)
Company (USD’000) (564,836) (6,046,983) (1,696,422)
Weighted average number of shares (thousands):

Weighted average number of shares outstanding 595,802 514,360 604,462
Adjustment for convertible preferred shares of
the Company – – 840,331
Weighted average number of shares for

calculation of diluted (loss)/earnings per share 595,802 514,360 1,444,793
Diluted (loss)/earnings per share (USD cent) (94.8) (1,175.6) (117.4)
14. INVESTMENT PROPERTIES
The Group’s investment properties are initially recognized at cost and subsequently carried at cost less
accumulated depreciation and accumulated impairment losses.
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Investment properties
Opening balance 53,125 53,065 718
Addition 1,678 987 –
Transferred to PPE (Note 15) – (52,648) –
Depreciation (1,228) (266) (154)
Exchange differences (510) (420) (57)
Closing balance 53,065 718 507
Cost 55,034 966 881

Accumulated depreciation (1,969) (248) (374)
Net book amount 53,065 718 507
In 2021, as a result of the acquisition of the operating entities of Indonesian regional sponsors, who were also
the lessees of the investment properties of the Group, an amount of USD52,648,000 of investment properties
were transferred to property, plant and equipment (Note 15).
Investment properties mainly represent buildings and warehouses held by the Group in Indonesia erected on
freehold land and include the cost of land, buildings and warehouses. The fair values as at December 31, 2020,
2021, and 2022 were determined by management’s self-assessment using discounted cash flow projection
based on significant unobservable inputs.
– I-58 –
The fair values of the investment properties were set out as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Fair value 57,231 890 876
(i) Leasing arrangements
The investment properties are leased to tenants (substantially operating entities of regional sponsors) under
operating leases with rentals payable monthly, generally with fixed monthly payments and the lease term of
around one year. As at December 31, 2022, the remaining leasing arrangements have lease terms less than 7
years.
Although the Group is exposed to changes in the residual value at the end of the current leases, the Group
typically enters into new operating leases and therefore will not immediately realise any reduction in residual
value at the end of these leases. Expectations about the future residual values are reflected in the fair value
of the properties.
The minimum lease receivable on leases of investment properties is USD4,338,000, USD341,000 and
USD284,000 as at December 31, 2020, 2021, and 2022, respectively.
No major or significant contractual obligation for future repairs and maintenance is committed.
Lease income amounting to approximately USD3,169,000, USD3,458,000, and USD57,000 for the years ended
December 31, 2020, 2021, and 2022, respectively, were related to the lease of investment properties.
– I-59 –
15. PROPERTY, PLANT AND EQUIPMENT
Buildings
and Logistic Leasehold Office Construction
warehouses equipment Vehicles improvements equipment Land Others in progress Total
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
APPENDIX I
Cost
As at January 1, 2020 7,566 13,580 48,698 10,349 22,360 – 226 7,240 110,019
Acquisition of subsidiaries – – 188 11 25 – – – 224
Transfer upon completion 8,172 11,556 1,180 1,288 2,907 – 18 (25,121) –
Other additions 381 39,915 117,999 9,949 24,871 1,136 537 53,316 248,104
Other disposals – (646) (1,135) – (617) – (16) – (2,414)
Exchange differences (113) 1,260 3,959 449 817 32 12 971 7,387
As at December 31, 2020 16,006 65,665 170,889 22,046 50,363 1,168 777 36,406 363,320
Acquisition of subsidiaries
(Notes 36, 37 and 38) 2,285 407,442 19,898 53,910 13,300 1,905 244 97,245 596,229
Transfer from investment
– I-60 –
properties 25,912 – – – – 28,690 – – 54,602
Transfer upon completion 205 86,077 10,883 5,578 2,263 – – (105,006) –
Other additions 1,609 78,458 174,326 15,636 29,271 – 468 238,353 538,121
Other disposals – (17,900) (7,749) (1,418) (8,697) – (317) – (36,081)
Exchange differences (484) (742) (2,432) (462) (1,112) (307) (150) 845 (4,844)
As at December 31, 2021 45,533 619,000 365,815 95,290 85,388 31,456 1,022 267,843 1,511,347
Acquisition of subsidiaries 59 1,367 1,791 – 544 – – – 3,761
Transfer upon completion 9,302 289,106 4,872 23,101 6,594 – – (332,975) –
Transfer to Intangible assets – – – – – – – (235) (235)
Other additions 18,810 137,038 87,642 17,681 33,762 30,035 1,501 218,737 545,206
Other disposals (327) (107,535) (8,882) (34,418) (5,689) (1,051) (284) (8,434) (166,620)
Exchange differences (7,755) (95,746) (29,594) (11,801) (8,664) (1,496) 4 (13,647) (168,699)
As at December 31, 2022 65,622 843,230 421,644 89,853 111,935 58,944 2,243 131,289 1,724,760
Buildings
Depreciation
APPENDIX I
As at January 1, 2020 (152) (1,531) (7,563) (4,127) (7,051) – (18) – (20,442)

Charge for the year (1,643) (3,974) (18,564) (4,864) (10,067) – (158) – (39,270)
Disposal of subsidiaries – – 2 – – – – – 2
Other disposals – 34 188 – 90 – 1 – 313
Exchange differences (59) (57) (460) (135) (177) – (3) – (891)
As at December 31, 2020 (1,854) (5,528) (26,397) (9,126) (17,205) – (178) – (60,288)
Transferred from investment
properties (1,954) – – – – – – – (1,954)
Other disposals – 4,658 1,463 1,228 3,279 – 183 – 10,811
Exchange differences 55 422 1,118 259 459 – 71 – 2,384
– I-61 –
As at December 31, 2021 (7,157) (22,944) (73,394) (21,215) (28,616) – (165) – (153,491)
Other disposals 87 5,740 3,779 8,943 3,005 – 19 – 21,573
Exchange differences 775 17,921 7,496 6,419 3,885 – (3) – 36,493
As at December 31, 2022 (9,989) (91,616) (141,054) (34,191) (45,954) – (531) – (323,335)
Buildings
Impairment
APPENDIX I
As at January 1, 2020 and

December 31, 2020 – – – – – – – – –
Charge for the year (766) (170,480) (251) (16,309) (3,100) – – (59,386) (250,292)
As at December 31, 2021 (766) (170,480) (251) (16,309) (3,100) – – (59,386) (250,292)
Charge for the year (587) (171,466) (192) (10,128) (2,375) – – (30,748) (215,496)
Transfer upon completion – (38,975) – – – – – 38,975 –
Other disposals – 81,164 118 5,350 408 – – 5,577 92,617
Currency translation differences – 19,209 545 1,233 471 – – 3,172 24,630
As at December 31, 2022 (1,353) (280,548) 220 (19,854) (4,596) – – (42,410) (348,541)
Net book amount

As at December 31, 2020 14,152 60,137 144,492 12,920 33,158 1,168 599 36,406 303,032
– I-62 –
As at December 31, 2021 37,610 425,576 292,170 57,766 53,672 31,456 857 208,457 1,107,564
As at December 31, 2022 54,280 471,066 280,810 35,808 61,385 58,944 1,712 88,879 1,052,884
The provision for impairment during the years ended December 31, 2021 and 2022 represented the impairment
loss of the property, plant and equipment that are expected to be redundant.
Subsequent to the acquisition of Best Inc.’s express business in China in December 2021 (Note 38), the Group
planned to integrate and consolidate the express delivery network facilities acquired with its own. The Group
identified certain redundant sorting centers which would be closed within one or two years when the current
lease agreements ended, and assessed the recoverable amounts of the relevant assets based on the higher of
value in use with reference to discounted cash flow projections and fair value less costs of disposal.
Accordingly, impairment provisions amounting to USD250,292,000 were made against the relevant assets of
property, plant and equipment during the year ended December 31, 2021.
In 2022, subsequent to integration of the express delivery network acquired from Best Inc. with its own, the
Group further planned to optimize its China domestic express delivery network to achieve higher efficiency
and quality. As a result, the Group further identified certain redundant sorting centers and assessed the
recoverable amounts of the relevant assets based on the higher of value in use with reference to discounted cash
flow projections and fair value less costs of disposal. Accordingly, impairment provisions amounting to
USD167,080,000 were made against the relevant assets of property, plant and equipment during the year ended
December 31, 2022.
Considering relevant market conditions, reference to its peers’ performance and general trends of the industry,
the Group performed the impairment tests for relevant long-term assets. As a result, management has identified
that relevant carrying amounts of CGUs or groups of CGUs have exceeded their recoverable amounts.
Accordingly, additional impairment charges of USD48,416,000 and USD121,086,000 were made to property,
plant and equipment and intangible assets (Note 17) respectively as at December 31, 2022.
The recoverable amount of the abovementioned long-term assets is determined based on value-in-use
calculations. These calculations use pre-tax cash flow projections based on certain assumptions made by
management. The key assumptions used for value-in-use calculations are as follows:
As at
December 31,
2021
Pre-tax discount rate 18.24%

Recoverable amount (USD’000) 324,707
As at
December 31,
2022
Pre-tax discount rate 17.25%

Recoverable amount (USD’000) 461,115
Depreciation expenses have been charged to the consolidated income statements as follows:
2020 2021 2022

USD’000 USD’000 USD’000
Cost of revenue 30,055 87,234 208,104

Selling, general and administrative expenses 8,657 16,881 19,511
Research and development expenses 558 329 295
39,270 104,444 227,910
As at December 31, 2020, 2021, and 2022, property, plant and equipment with carrying amount of
USD17,180,000, USD69,684,000 and USD71,592,000 were pledged as securities for the Group’s borrowings
from financial institutions (Note 28), respectively.
– I-63 –
16. LEASES
(i) Amounts recognized in the consolidated balance sheets
The consolidated balance sheets show the following amounts relating to leases:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Right-of-use assets
Buildings and warehouses 182,789 578,085 460,258
Vehicles 3,117 10,099 11,320
Land 682 3,138 2,471
Equipment and others 174 12,890 7,158
186,762 604,212 481,207
Lease liabilities
Current lease liabilities 63,639 207,490 151,195
Non-current lease liabilities 111,378 391,232 341,471
175,017 598,722 492,666
Additions to the right-of-use assets during the financial years ended December 31, 2020, 2021, and 2022 were
USD169,150,000, USD530,693,000 and USD269,678,000, respectively.
(ii) Amounts recognized in the consolidated income statements
The consolidated income statements show the following amounts relating to leases:
2020 2021 2022

USD’000 USD’000 USD’000
Depreciation charge of right-of-use assets

Buildings and warehouses 55,266 104,224 245,899
Vehicles 499 6,138 5,694
Land 226 701 437
Equipment and others 9 2,815 5,146
56,000 113,878 257,176
Interest expense (Note 10) 6,007 13,860 37,318

Expense relating to short-term leases
(included in cost of revenue, selling, general
and administrative expenses, research, and
development expenses) 21,146 59,730 124,377
The total cash outflows for leases payments for the years ended December 31, 2020, 2021, and 2022 were
USD87,206,000, USD195,541,000 and USD417,516,000 respectively. For the years ended December 31, 2020,
2021, and 2022, among the cash outflow for lease payments, cash outflow for the principal elements of lease
payments were USD61,405,000, USD101,703,000, and USD262,668,000 respectively, which is presented in
cash flows from financing activities. The lease payments related to short-term leases were USD19,794,000,
USD79,978,000, and USD117,530,000 for the years ended December 31, 2020, 2021, and 2022, which are
presented in cash flows from operating activities.
– I-64 –
(iii) The group’s leasing activities and how these are accounted for
The Group leases various offices, warehouses, vehicles, land and equipment. Lease contracts are typically
made for fixed periods of 6 months to 6 years but may have extension options as described in (v) below.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
Under certain circumstances, certain amount of deposits is required to be paid to the lessors. Generally leased
assets may not be used as security for borrowing purposes.
(iv) Variable lease payments
The Group’s property leases generally do not contain material variable payment terms that are linked to sales
generated.
(v) Extension and termination options
The majority of extension and termination options held are exercisable by mutual agreement of the Group and
the respective lessors.
(vi) Residual value guarantees
The Group generally does not provide residual value guarantees in relation to equipment leases.
17. INTANGIBLE ASSETS
Customer License
Software Goodwill relationship Trademark and others Total
Cost
As at January 1, 2020 2,134 1,444 310 – – 3,888
Additions 1,303 220 – 786 1,481 3,790
Exchange differences 54 – – – 51 105
As at December 31, 2020 3,491 1,664 310 786 1,532 7,783

Acquisition of subsidiaries 956 946,365 173,531 – 332 1,121,184
Additions 5,608 – – 427 – 6,035
Exchange differences 9 (2,200) – – 35 (2,156)
As at December 31, 2021 10,064 945,829 173,841 1,213 1,899 1,132,846
Acquisition of
subsidiaries (b) 151 51,829 – – – 51,980
Other additions 7,531 – – 154 – 7,685
Other disposals (54) – – – – (54)
Exchange differences (861) (76,718) (6,564) – (180) (84,323)
As at December 31, 2022 16,831 920,940 167,277 1,367 1,719 1,108,134
Amortization
As at January 1, 2020 (936) – (16) – – (952)
Additions (477) – (31) (59) (237) (804)
Exchange differences (3) – – – (10) (13)
As at December 31, 2020 (1,416) – (47) (59) (247) (1,769)

Additions (842) – (730) (96) (233) (1,901)
Exchange differences 28 – – – (10) 18
As at December 31, 2021 (2,230) – (777) (155) (490) (3,652)

Additions (2,898) – (17,528) (180) (101) (20,707)
Other disposals 32 – – – – 32
Exchange differences 415 – 356 – 77 848
As at December 31, 2022 (4,681) – (17,949) (335) (514) (23,479)
– I-65 –
Customer License
Software Goodwill relationship Trademark and others Total
Impairment
As at January 1, 2020,
December 31, 2020 and
December 31, 2021 – – – – – –
Additions – (117,502) (3,584) – – (121,086)
Other disposals – – – – – –
Exchange differences – – – – – –
As at December 31, 2022 – (117,502) (3,584) – – (121,086)
Carrying values
As at December 31, 2020 2,075 1,664 263 727 1,285 6,014
As at December 31, 2021 7,834 945,829 173,064 1,058 1,409 1,129,194
As at December 31, 2022 12,150 803,438 145,744 1,032 1,205 963,569
The abovementioned software was all externally acquired rather than internally developed.
(a) During the Track Record Period, no development costs were capitalised as intangible assets.
Amortization expenses have been charged to the consolidated income statements as follows:
2020 2021 2022

USD’000 USD’000 USD’000
Cost of revenue 607 315 8,139

Selling, general and administrative expenses 197 1,586 12,568
804 1,901 20,707
(b) Acquisition of the operating entity of Brazilian regional sponsors
In October 2022, the Group acquired the operating entity of Brazilian regional sponsors (the “Brazilian
Acquiree”). As the consideration of this transaction, the Group swapped certain equity interests of its major
operating entity in Brazil to the corresponding Brazilian regional sponsors.
With the assistance from an external valuer appointed by the Group, the Group applied the discounted cash
flow method to determine the underlying equity value of the Brazilian Acquiree. The fair value of relevant net
identifiable assets acquired was around negative USD9,127,000.
The fair value of the swapped-out equity interests of the operating entity exceeded the fair value of relevant
net identifiable assets acquired by USD51,829,000, which was recognised as goodwill.
– I-66 –
(c) Impairment test for goodwill
A cash-generating unit (CGU) is the smallest group of assets that independently generates cash flow and whose
cash flow is largely independent of the cash flows generated by other assets. Goodwill is allocated to the
Group’s CGUs or groups of CGUs identified according to the territories in which the Group operates:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
China 220 630,676 459,428

Indonesia 1,194 216,407 199,012
Thailand – 96,293 90,937
Brazil – – 51,829
Others 250 2,453 2,232
1,664 945,829 803,438
The recoverable amount of a CGU or a group of CGUs is determined based on value-in-use calculations. These
calculations use pre-tax cash flow projections based on certain assumptions made by management covering a
ten-year period (the “Period”). The management consider the length of the forecast period is appropriate
because it generally takes longer for the Group to reach a stable growth state, especially taking into account
the fact that the e-commerce express industry in the abovementioned regions is an emerging industry with fast
growth in the coming years and the Group is still in the initial stage of rapid growth. The key assumptions used
for value-in-use calculations for the Track Record Period (if applicable) are as follows:
2021
China Indonesia Thailand
Annual growth rate within the Period 5.4%-105.0% 5.5%-29.2% 10.7%-64.2%

Growth rate to extrapolate cash flows beyond
the Period 2.5% 3.0% 2.0%
Gross margin 0.0%-13.4% 24.8%-28.9% (12.0%)-33.0%
Pre-tax discount rate 18.14% 19.87% 20.24%
Excess of recoverable amount over carrying
value (USD’000) 5,297,516 2,294,940 508,299
2022
China Indonesia Thailand Brazil
Compound annual growth rate

within the Period 2.4%-33.3% 5.3%-28.0% 10.2%-40.6% 27.6%-302.9%
Growth rate to extrapolate cash
flows beyond the Period 2.2% 3.0% 2.0% 3.0%
Gross margin 3.2%-8.2% 23.1%-28.5% 12.7%-30.3% (4.4%)-20.5%
Pre-tax discount rate 17.48% 19.17% 21.45% 24.85%
Excess of recoverable amount
over carrying value
(USD’000) – 1,987,918 580,469 129
Management determined budgeted gross margin and growth rates based on past performance and its
expectations of market development. The growth rates to extrapolate cash flows beyond the Period are
consistent with forecasts included in relevant industry reports. The discount rates used are pre-tax after
reflecting specific risks of the relevant CGUs and groups of CGUs.
– I-67 –
For the groups of CGUs in China, management has also assessed the risk of impairment of goodwill and
concluded that no impairment charge would be required as at December 31, 2021. As at December 31, 2022,
for the groups of CGUs in China, according to management’s impairment test performed with the assistance
of an independent valuer, the carrying amount exceeded relevant recoverable amount. As a result, impairment
charges of goodwill amounting to approximately USD117,502,000 were recognised.
For the groups of CGUs in Indonesia and Thailand, assuming compound annual revenue growth rate within the
budget period, growth rate to extrapolate cash flows beyond the budget period and gross margin decreased by
10% relatively, and pre-tax discount rate increased by 10% relatively, no impairment charge would be required
for the goodwill as at December 31, 2022 and 2021.
For the groups of CGUs in Brazil, management has also assessed the risk of impairment of goodwill and
concluded that no impairment charge would be required as at December 31, 2022.
18. MAJOR SUBSIDIARIES AND CONTROLLED ENTITIES
The Company’s investments in subsidiaries are as follows:
2020 2021 2022

USD’000 USD’000 USD’000
Investment in Onwing Global Limited (i) 217,958 882,972 882,972

Investment in Yunlu International Limited (ii) – 124,506 124,506
217,958 1,007,478 1,007,478
(i) In 2021, the Company issued certain ordinary shares as considerations of certain transactions (Note 35,
Note 36, Note 37), which were accounted for as its investment in Onwing Global Limited, a subsidiary
directly held by the Company.
(ii) In 2021, as part of the reorganization of the cross-border service business, the Company established
Yunlu International Limited, injected cash of USD124,506,000 and restructured the Group’s subsidiaries
in cross-border business under it.
– I-68 –
As at December 31, 2020, 2021, and 2022, and as at the date of this report, the Company had the following major subsidiaries (including controlled structured entities):
Percentage of Attributable equity
Paid-in capital interest to the Company
As at December 31, As at December 31, As at the
Country/Place and date of this Principal activities and
Name of entity Type of legal entity date of incorporation 2020 2021 2022 2020 2021 2022 report place of operation
APPENDIX I
Indirectly held:
Jitu International Logistics Co., Ltd. Limited Liability The PRC, CNY14,000,000 CNY200,020,000 CNY200,020,000 99.3% 89.3% 76.94% 76.94% Cross-border services
(Note 26 (iii))(Note 2) Company January 10, 2018
Thuan Phong Express Company Limited Limited Liability Vietnam, VND2,500,000,000 VND112,500,000,000 VND112,500,000,000 62% 100% 100% 100% Express delivery services
Company January 13, 2016
PH Global Jet Express Inc. doing business Limited Liability The Philippines PHP2,500,000 PHP2,500,000 PHP2,500,000 40% 40% 40% 40% Express delivery services
under the name and style of J&T Express Company September 14, 2018
J&T Express (Malaysia) Sdn.Bhd. Limited Liability Malaysia, MYR3,878,075 MYR3,878,075 MYR3,878,075 70.2% 100% 100% 100% Express delivery services
Company January 10, 2018
Global Jet Express (Thailand) Co., Ltd. Limited Liability Thailand, THB200,000,000 THB123,507,750 THB123,507,750 Note 1 Express delivery services
Company August 17, 2018
Controlled entities:
J&T Express China Co., Ltd.(Note 2) Limited Liability The PRC, CNY10,000,000 CNY10,000,000 CNY10,000,000 100% 100% 100% 100% Courier and warehousing
Company September 29, 2007 services
J&T Express (Jinhua) Supply Chain Limited Liability The PRC, CNY10,000,000 CNY10,000,000 CNY10,000,000 100% 100% 100% 100% Courier and warehousing
Co., Ltd.(Note 2) Company October 28, 2019 services
J&T Express (Hebei) Acme Supply Chain Limited Liability The PRC, CNY10,000,000 CNY10,000,000 CNY10,000,000 51% 85% 85% 85% Courier and warehousing
Management Co., Ltd.(Note 2) Company November 13, 2019 services
J&T Express (Shandong) Supply Chain Limited Liability The PRC, CNY5,100,000 CNY10,000,000 CNY10,000,000 51% 85% 85% 85% Courier and warehousing
– I-69 –
J&T Express (Henan) Acme Supply Chain Limited Liability The PRC, CNY10,000,000 CNY10,000,000 CNY10,000,000 51% 85% 85% 85% Courier and warehousing
Co., Ltd.(Note 2) Company November 1, 2019 services
J&T Express (Jieyang) Supply Chain Limited Liability The PRC, CNY5,600,000 CNY6,600,000 CNY6,600,000 51% 85% 85% 85% Courier and warehousing
Management Company November 5, 2019 services
Co., Ltd.(Note 2)
J&T Express (Guangzhou) Supply Chain Limited Liability The PRC, CNY10,000,000 CNY10,000,000 CNY10,000,000 100% 100% 100% 100% Courier and warehousing
J&T Express (Fujian) Supply Chain Limited Liability The PRC, CNY10,000,000 CNY10,000,000 CNY10,000,000 51% 85% 85% 85% Courier and warehousing
Management Company November 7, 2019 services
Co., Ltd.(Note 2)
Pt. Global Jet Express Limited Liability Indonesia, IDR3,000,000,000 IDR3,000,000,000 IDR3,000,000,000 100% 100% 100% 100% Express delivery services
Company December 20, 2006
Notes:
(1) As at December 31, 2020, the Company indirectly owns 48% shareholding of Global Jet Express (Thailand) Co., Ltd., while according to relevant investment agreements,
the Company indirectly enjoys around 98% of the dividend interests of Global Jet Express (Thailand) Co., Ltd. As at December 31, 2021 and 2022, the Company indirectly
owns around 74% shareholding of Global Jet Express (Thailand) Co., Ltd, and according to relevant investment agreements, the Company indirectly enjoys substantially
100% of the dividend interests of Global Jet Express (Thailand) Co., Ltd..
(2) The English names of the companies referred above represent the best effort made by the management of the Company to directly translate the Chinese names as they
have not registered any official English names.
The statutory auditors of the Group’s major subsidiaries were as follows:
Name of statutory auditor

2020 2021 2022
Indirectly held:
Jitu International Logistics Shenzhen Huashuo Certified Shenzhen Huashuo Certified Shenzhen Huashuo Certified
Co., Ltd. Public Accountants Public Accountants Public Accountants
(General Partnership)(Note 1) (General Partnership)(Note 1) (General Partnership)(Note 1)
Thuan Phong Express A&C Baker Tilly A&C Baker Tilly [RSM Vietnam Auditing &
Company Limited Consulting]
PH Global Jet Express Inc. Isla Lipana & Co. Isla Lipana & Co. Isla Lipana & Co.
doing business under the (PwC Philippines)
name and style of J&T
Express
J&T Express (Malaysia) SJ & CO PLT PricewaterhouseCoopers PLT [YH TAN & ASSOCIATES
Sdn.Bhd. PLT]
Global Jet Express Kaemakorn Vachiravarakarn Dharmniti Auditing Co., Ltd Dharmniti Auditing Co., Ltd
(Thailand) Co., Ltd.
Controlled entities:
J&T Express China Zhongzhun Certified Public Beijing Chengyu Certified Shanghai Shenya Certified
Co., Ltd. Accountants (Special Public Accountants (Special Public Accountants Co., Ltd
General Partnership) General Partnership)
Shanghai Branch(Note 1) Shanghai Branch(Note 1)
J&T Express (Jinhua) Supply Jinhua Daofeng Certified Jinhua Daofeng Certified Zhejiang Nanfang Certified
Chain Co., Ltd. Public Accountants Public Accountants (General Public Accountants Co., Ltd.
(General Partnership)(Note 1) Partnership)(Note 1)
J&T Express (Hebei) Acme Zhongshen Zhonghuan HeBei ShangCheng Public HeBei ShangCheng Public
Supply Chain Management Certified Public Accountants Accounting Firm(Note 1) Accounting Firm(Note 1)
Co., Ltd. (Special General
Partnership)
Hebei Branch(Note 1)
J&T Express (Shandong) Shandong Xinhua Co., Ltd. Jinan Suyuan Certified Public Shandong Suyuan Certified
Supply Chain Co., Ltd. Jinan Branch(Note 1) Accountants(Note 1) Public Accountants (General
Partnership)
J&T Express (Henan) Acme Grant Thornton Certified Grant Thornton Certified Grant Thornton Certified
Supply Chain Co., Ltd. Public Accountants (Special Public Accountants (Special Public Accountants (Special
General Partnership) General Partnership) General Partnership) Henan
Henan Branch(Note 1) Henan Branch(Note 1) Branch(Note 1)
J&T Express (Jieyang) Guangdong Huaqian Guangdong Huaqian Guangzhou Hengxin
Supply Chain Management Accounting Firm(Note 1) Accounting Firm(Note 1) Accountant Firm Co., Ltd.
Co., Ltd.
J&T Express (Guangzhou) Guangzhou Avalue Certified Guangzhou Jinling Certified Guangzhou Hengxin
Supply Chain Co., Ltd. Public Accountants Public Accountings(Note 1) Accountant Firm Co., Ltd.
Co., Ltd.(Note 1)
J&T Express (Fujian) Supply Xiamen Huacheng Certified Xiamen Yingjian Certified Quanzhou Yonghexing
Chain Management Co., Public Accountants Public Accountants Certified Public Accountants
Ltd. Co., Ltd.(Note 1) Co., Ltd(Note 1) Co., Ltd.
Pt. Global Jet Express ShineWing Indonesia [ShineWing Indonesia] [ShineWing Indonesia]
Note:
(1) The English names of the statutory auditors represent the best effort by the management of the Company
in translating their Chinese names as they do not have official English names.
– I-70 –
19. FINANCIAL INSTRUMENTS BY CATEGORY
Group
As at December 31,
Note 2020 2021 2022
USD’000 USD’000 USD’000
Financial Assets
Financial assets at amortised cost
Trade receivables 21 180,760 334,876 513,954
Other receivables and other assets
(excluding prepayments) 22 651,021 394,518 144,088
Other non-current assets
(excluding prepayments) 20 58,380 157,212 43,570
Restricted cash 23 928 125,970 79,725
Cash and cash equivalents 23 600,425 2,102,448 1,504,048
profit or loss 24 71,324 41,581 497,490
1,562,838 3,156,605 2,782,875
As at December 31,
Note 2020 2021 2022
USD’000 USD’000 USD’000
Financial Liabilities
Financial Liabilities at amortised cost
Trade payables 31 225,452 577,065 484,215
Accruals and other payables (excluding
salary and welfare payables, tax
payables and other non-financial
liabilities) 32 217,742 646,915 533,856
Advances from customers 33 137,224 291,362 209,925
Borrowings 28 444,060 89,027 1,098,377
Financial liabilities – redemption
liabilities of shares of JNT KSA 29 – 25,458 30,583
profit or loss 29 1,812,915 10,487,306 7,765,067
3,012,410 12,849,604 10,614,689
– I-71 –
Company
As at December 31,
Note 2020 2021 2022
USD’000 USD’000 USD’000
Financial Assets
Financial assets at amortised cost
Loans to subsidiaries 20 688,400 4,438,706 4,379,799
Other receivables and other assets
(excluding prepayments) 22 466,110 226,460 307
Cash and cash equivalents 23 105,475 222,341 3,347
profit or loss 24 50,007 – 481,050
1,309,992 4,887,507 4,864,503
As at December 31,
Note 2020 2021 2022
USD’000 USD’000 USD’000
Financial Liabilities
Financial liabilities at amortised cost
Accrued expenses and other payables 32 – 161,901 6,127
profit or loss 29 1,812,915 10,201,544 7,212,933
1,812,915 10,497,194 7,219,060
20. OTHER NON-CURRENT ASSETS
Group
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Loans to related parties – non-current portion 167 146,299 –

Loans to third parties – non-current portion 58,829 2,127 37,428
Prepayments for constructions 15,713 13,918 19,778
Deposits – 11,370 7,363
Others – – 39
Less: allowance for credit losses (616) (2,584) (1,260)
74,093 171,130 63,348
– I-72 –
Terms for loans to related parties and third parties were negotiated on a case-by-case basis. During the Track
Record Period, generally the Group entered into loan agreements with related parties and third parties with
terms ranging from 8 months to 2 years, with annual interest rates from 0.4% to 7%. At the end of each
reporting period, such loans due over 12 months were included in other non-current assets.
Company
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Loans to subsidiaries 688,400 4,438,706 4,379,799
During the Track Record Period, loans to subsidiaries were not interest bearing, and the Company classified
such loans as non-current assets as generally management did not expect to recover the loans within twelve
months as at December 31, 2021 and 2022.
21. TRADE RECEIVABLES
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Trade receivables 187,083 379,447 561,166

Less: provision for impairment (6,323) (44,571) (47,212)
180,760 334,876 513,954
The majority of the balances of trade receivables are generally due from customers of cross-border services
and enterprise or other direct customers of express delivery services in China, Indonesia, Thailand, the
Philippines, Malaysia and other countries, and customers of other services, to whom the Group generally
grants a credit period of 30 to 120 days.
For outlets of network partners in China, service fees are typically required to be prepaid.
The aging analysis of trade receivables based on invoice date is as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Within 3 months 175,892 347,768 514,895

3-6 months 10,183 20,082 8,793
6-9 months 705 5,302 1,702
9-12 months 105 2,425 4,917
Above 12 months 198 3,870 30,859
Less: provision for impairment (6,323) (44,571) (47,212)
Total 180,760 334,876 513,954
– I-73 –
The Group applies the simplified approach under IFRS 9, which requires lifetime expected losses to be
recognized from initial recognition of the assets. The provision matrix is determined based on historical
observed default rates over the expected life of the trade receivables with similar credit risk characteristics and
forward-looking estimates. At the end of each reporting period, the historical observed default rates are
updated and changes in the forward-looking estimates are analysed. Information about the impairment of trade
receivables and the Group’s exposure to credit risk is described in Note 3.1.
The carrying amounts of the Group’s trade receivables approximated their fair values as at the balance sheet
dates.
22. PREPAYMENTS, OTHER RECEIVABLES, AND OTHER ASSETS
Group
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Loans to related parties 70,453 47,364 –

Loans to third parties 248,553 16,155 1,674
consideration (Note 29) 236,862 – –
consideration (Note 25 (15)) – 30,000 –
consideration (Note 26 (v)) – 159,922 –
Prepaid VAT and other taxes 71,911 422,339 482,667
Deposits 37,356 81,379 77,151
Prepaid expenses 22,431 65,333 76,255
Others 64,211 66,298 66,302
Less: allowance for credit losses (6,414) (6,600) (1,039)
745,363 882,190 703,010
Company
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Loans to related parties – 36,600 –

Loans to third parties 233,500 – –
consideration (Note 29) 236,862 – –
consideration (Note 25 (15)) – 30,000 –
consideration (Note 26 (v)) – 159,922 –
Others – 361 307
Less: allowance for credit losses (4,252) (423) –
466,110 226,460 307
– I-74 –
As at December 31, 2020, 2021, and 2022, loans to related parties and third parties due within 1 year were
included in current assets, and those due over 1 year would be included in non-current assets (Note 20).
Terms for loans to related parties and third parties were negotiated on a case-by-case basis and during the Track
Record Period, the Group and the Company entered into loan agreements with related parties and third parties
with terms ranging from 8 months to 2 years, with annual interest rates from 0.4% to 7% per annum and
unsecured. The loans to related parties and third parties were substantially settled in 2022.
The receivable of Series C1 Preferred Share consideration settled in 2022.
In respect of the receivable of Series C2 Preferred Share consideration, as mentioned in Note 26 (v), in
December 2021, 24,440,890 Series C2 Preferred Shares with total amount of consideration of USD382,877,000
were issued, of which USD159,922,000 was pending to be received as at December 31, 2021. Accordingly, the
payable with the same amount related to the repurchase of the ordinary shares and preferred shares was also
pending to be paid according to the relevant agreements (Note 32). Considering such, minimal credit risk was
identified for the receivable of Series C2 Preferred Share consideration. The outstanding receivables and
payables were settled in 2022.
23. RESTRICTED CASH AND CASH AND CASH EQUIVALENTS
Group
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Restricted cash
Cash at banks 928 125,970 79,725
Cash and cash equivalents

Cash on hand and at banks 600,425 2,102,448 1,504,048
Total 601,353 2,228,418 1,583,773
Company
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Cash on hand and at banks 105,475 222,341 3,347
As at December 31, 2020, 2021, and 2022, restricted cash with a total amount of USD621,000, USD633,000,
and USD218,000, respectively were pledged as collaterals for the Group’s borrowings (Note 28).
As at December 31, 2020, 2021, and 2022, restricted cash with a total amount of USD307,000, USD46,179,000
and USD41,497,000, respectively, were placed as securities of the Group’s certain guarantees and
commitments.
As at December 31, 2020, 2021, and 2022, restricted cash with a total amount of nil, USD79,158,000 and
USDnil, respectively, were pledged as collateral for the Group’s bank acceptance notes.
As at December 31, 2022, restricted cash with a total amount of approximately USD38,010,000 was placed
under restriction, due to a number of on-going legal claims, for which management has made relevant
provisions (Note 32).
– I-75 –
24. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Group
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Current
Bank wealth management products (i) 71,324 41,581 16,440
Non-current
Investments in the convertible bonds of Huisen
Global Limited (ii) – – 428,678
Investments in Windfall T&L SPC (iii) – – 52,372
– – 481,050
71,324 41,581 497,490
(i) Bank wealth management products purchased by the Group were issued by major and reputable
commercial banks without guaranteed returns. The Group manages and evaluates the performance of
investments on a fair value basis in accordance with the Group’s risk management and investment
strategy. The fair values of part of the bank wealth management products are based on cash flow
discounted using the expected return based on observable market inputs and are within level 2 of the
fair value hierarchy.
(ii) In 2022, the Group invested around USD457,000,000 in the convertible bonds issued by Huisen Global
Limited, a related party, engaged in the industry of freight less-than truckload delivery business, which
was accounted for as financial assets at fair value through profit or loss.The bond matures in seven years
after its issuance and may be extended at the holder’s discretion, the interest of which is 1.5% per
annum. At the discretion of the holder, the entire principal amount may be converted into preferred
shares to be issued by the Huisen Global Limited in the event of any of its future equity financing
transaction, with the conversion price as 80% of the price at its latest equity financing immediately prior
to it.
The movements of investments in the convertible bonds of Huisen Global Limited are set out below:
2022
USD’000
Carrying amount at the beginning of the year –

Purchase the convertible bonds of Huisen Global Limited 457,000
Changes in fair value – profit or loss (28,322)
Carrying amount at the end of the year 428,678
With the assistance from an external valuer appointed by the Group, the Group applied the discounted
cash flow method to determine the underlying equity value of Huisen Global Limited, and adopted
equity allocation model (if applicable) to determine the fair value of the abovementioned convertible
bonds.
– I-76 –
In determining the fair value of the abovementioned convertible bonds, one or more of the significant
inputs are not based on observable market data, and therefore the Group included the abovementioned
investments in level 3 financial instruments. Key assumptions are set out as below:
As at
December 31,
Relationship of
2022
unobservable inputs
USD’000 to fair value
Discount rate 17.0% The higher the discount rate,

the lower the fair value
Discount of lack of marketability (“DLOM”) 26.0% The higher the DLOM, the
lower the fair value
Expected volatility 47.6% The higher the expected
volatility, the lower the
fair value
Discount rate was estimated by weighted average cost of capital as at the valuation date. The DLOM
was estimated based on the option-pricing method. Under the option pricing method, the cost of put
option, which can hedge the price change before the privately held share can be sold, was considered
as a basis to determine the lack of marketability discount. Expected volatility was estimated based on
annualized standard deviation of daily stock price return of comparable companies for the period before
respective valuation date and with similar span as time to expiration. In addition to the assumptions
adopted above, the Huisen Global Limited’s projections of future performance were also factored into
the determination of the underlying equity value of Huisen Global Limited on the valuation date.
The estimated carrying amount of relevant convertible bonds as at December 31, 2022 would have been
USD10,288,000 lower/USD12,875,000 higher, respectively, should the discount rate used in discounted
cash flow analysis be higher/lower by 100 basis points from management’s estimates.
(iii) Through January to March 2022, the Group invested around USD60,000,000 in a private equity fund
focusing on investing in industries such as logistics and its upstream and downstream industry chains,
under significant influence of a member of key management personnel. The contractual term of
investment is between 3-5 years, which may be further extended with the consent of the majority of
investors.
The movements of investments in Windfall T&L SPC are set out below:
2022
USD’000
Carrying amount at the beginning of the year –

Investment in Windfall T&L SPC 60,020
Changes in fair value – profit or loss (7,648)
Carrying amount at the end of the year 52,372
As the abovementioned fund and personnel are specialized in making investments in the
abovementioned private sectors, the Group does not seek control or significant influence over it. As per
relevant agreements and contracts, the Group does not take any board seats and is not involved in
relevant decision-making process of the abovementioned investees. As a result, the Group does not have
control or significant influence over the fund, and accounts for such investment as financial assets at fair
value through profit or loss.
– I-77 –
25. SHARE CAPITAL
Authorised
Ordinary shares Preferred shares
Nominal Nominal
Nominal Nominal Number of value of Number of value of Nominal Number Nominal Number Nominal Number Nominal Nominal
Nominal Number of value of Number of value of Series Series Series Series Number of value of of value of of value of of value of Number of value of
Number of value of Class A Class A Class B Class B Pre-A1 Pre-A1 Pre-A2 Pre-A2 Series A Series A Series B Series B Series B+ Series B+ Series C1 Series C1 Series C2 Series C2 Total
ordinary ordinary Ordinary Ordinary Ordinary Ordinary Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred number
shares shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares of shares
APPENDIX I
(’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000)
As at January 1, 2020 4,871,066 49 – – – – 74,667 1 54,267 1 – – – – – – – – – – 5,000,000

Reclassification and
redesignation upon
issuance of the
Series A Preferred
Shares (1) (276,334) (3) – – – – – – – – 276,334 3 – – – – – – – – –
redesignation upon
repurchase of the
Series A Preferred
Shares (2) 6,413 – – – – – – – – – (6,413) – – – – – – – – – –
redesignation of
Class A and B
Ordinary Shares (3) (4,601,145) (46) 4,466,745 45 134,400 1 – – – – – – – – – – – – – – –
redesignation upon
issuance of the
Series B Preferred
Shares (4) – – (22,462) – – – – – – – – – 22,462 – – – – – – – –
– I-78 –
redesignation of
Class A and B
Ordinary Shares (4) – – (50,550) (1) 50,550 1 – – – – – – – – – – – – – – –
As at December 31,
2020 – – 4,393,733 44 184,950 2 74,667 1 54,267 1 269,921 3 22,462 – – – – – – – 5,000,000
re-designation upon
issuance of the
Series B+ Preferred
Shares (5) – – (255,864) (3) – – – – – – – – – – 255,864 3 – – – – –
re-designation upon
issuance of the
Series C1 Preferred
Shares (6) – – (212,765) (2) – – – – – – – – – – – – 212,765 2 – – –
re-designation upon
issuance of the
Series C2 Preferred
Shares (6) – – (72,250) (1) – – – – – – – – – – – – – – 72,250 1 –
As at December 31,
2021 and 2022 – – 3,852,854 38 184,950 2 74,667 1 54,267 1 269,921 3 22,462 – 255,864 3 212,765 2 72,250 1 5,000,000
(1) In May 2020, the Company redesignated and reclassified 276,334,498 ordinary shares from its authorized ordinary shares into Series A Preferred Shares.
(2) In September 2020, the Company repurchased and cancelled 6,413,333 Series A Preferred Shares at substantially nil consideration, redesignated and reclassified such
Series A Preferred Shares into ordinary shares.
(3) In November 2020, the Company redesignated and reclassified 4,466,745,503 ordinary shares from its authorized ordinary shares into Class A Ordinary Shares, and
134,400,000 ordinary shares from its authorized ordinary shares into Class B Ordinary Shares.
APPENDIX I
(4) In December 2020, the Company redesignated and reclassified 22,462,293 Class A Ordinary Shares from its authorized ordinary shares into Series B Preferred Shares,
and 50,550,000 Class A Ordinary Shares from its authorized ordinary shares into Class B Ordinary Shares.
(5) In February 2021, the Company redesignated and reclassified 255,864,131 Class A Ordinary Shares from its authorized ordinary shares into Series B+ Preferred Shares.
(6) In October 2021, the Company redesignated and reclassified 212,765,236 Class A Ordinary Shares from its authorized ordinary shares into Series C1 Preferred Shares,
and 72,250,382 Class A Ordinary Shares from its authorized ordinary shares into Series C2 Ordinary Shares.
– I-79 –
Issued
The Company was incorporated in the Cayman Islands as an exempted company registered under the laws of the Cayman Islands on October 24, 2019. Upon incorporation of
the Company, one share was issued at par value of USD0.00001.
Nominal Nominal
Nominal Nominal Number of value of Number of value of Nominal Nominal
Nominal Number of value of Number of value of Series Series Series Series Number of value of Number of value of
Number of value of Class A Class A Class B Class B Pre-A1 Pre-A1 Pre-A2 Pre-A2 Series A Series A Series B Series B
APPENDIX I
ordinary ordinary Ordinary Ordinary Ordinary Ordinary Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
shares shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares
(’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000
As at January 1, 2020 320,000 3 – – – – 74,667 1 54,267 – – – – –

Issuance of Series A
Preferred Shares (1) – – – – – – – – – – 269,921 3 – –
redesignation of Class A
and B Ordinary Shares (2) (320,000) (3) 185,600 2 134,400 1 – – – – – – – –
Issuance of Series B
Preferred Shares (3) – – – – – – – – – – – – 22,462 –
Transfer of Series Pre-A1,
Pre-A2 and Series A
Preferred Shares from
equity to liability (4) – – – – – – – – – – – – – –
– I-80 –
As at December 31, 2020 – – 185,600 2 134,400 1 74,667 1 54,267 – 269,921 3 22,462 –
On incorporation of the Company on October 24, 2019, the Company underwent the Reorganization as described in Note 1.2. The movements in share capital of the Company
subsequent to its incorporation are as follows:
(1) In May 2020, the Company entered into a share purchase agreement with the Series A Preferred Shares investors pursuant to which, the Company issued 276,334,498
shares of Series A Preferred Shares and in September 2020 repurchased and cancelled 6,413,333 Series A Preferred Shares. The total consideration for the issuance of
Series A Preferred Shares amounted to USD1,186,633,000, of which USD977,193,000 was received during the year and the outstanding consideration receivable of
USD236,862,000 was recognized on the balance sheet as at December 31, 2020 (Note 22). The receivables were fully settled in 2021.
(2) In November 2020, the Company redesignated and reclassified 185,600,000 ordinary shares into Class A Ordinary Shares, and 134,400,000 ordinary shares into Class
B Ordinary Shares.
(3) In December 2020, the Company entered into a share purchase agreement with the Series B Preferred Shares investor, pursuant to which, the Company issued 22,462,293
shares of Series B Preferred Shares with the total consideration of USD100,000,000, recognized as financial liabilities at fair value through profit or loss (Note 29).
(4) In December 2020, along with the issuance of Series B Preferred Shares, the Company promulgated the Third Amended and Restated Memorandum of Association (Note
29), according to which certain shareholders are able to discretionarily trigger the drag-along sale, and in which all assets and funds of the Company legally available
for distribution to all the shareholders shall be distributed. Consequently, Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares and Series A Preferred Shares
were reclassified as financial liabilities measured at fair value through profit or loss on December 31, 2020 (Note 29).
Nominal Nominal
Nominal Nominal Number value of Number value of Nominal Nominal Nominal Nominal Nominal
Number of value of Number of value of of Series Series of Series Series Number of value of Number of value of Number of value of Number of value of Number of value of
Class A Class A Class B Class B Pre-A1 Pre-A1 Pre-A2 Pre-A2 Series A Series A Series B Series B Series B+ Series B+ Series C1 Series C1 Series C2 Series C2
Ordinary Ordinary Ordinary Ordinary Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares
(’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000
As at January 1, 2021 185,600 2 134,400 1 74,667 1 54,267 – 269,921 3 22,462 – – – – – – –

APPENDIX I
Issuance of Series B+ Preferred

Shares (5) – – – – – – – – – – – – 255,864 3 – – – –
Share-based compensation for
employees (6,11) 77,335 1 28,808 1 – – – – – – – – – – – – – –
Repurchase of Class B Ordinary
Shares (7) – – (3,143) – – – – – – – – – – – – – – –
Issuance of Class A Ordinary Shares
to acquire Cambodia NCI (8) 259 – – – – – – – – – – – – – – – – –
to acquire Malaysia NCI (8) 25,669 – – – – – – – – – – – – – – – – –
to acquire Vietnam NCI (8) 18,778 – – – – – – – – – – – – – – – – –
to acquire China NCI (8) 32,509 – – – – – – – – – – – – – – – – –
Share-based compensation to
regional sponsors (9) 32,821 – – – – – – – – – – – – – – – – –
to acquire operating entities of
Thai regional sponsor (10) 11,210 – – – – – – – – – – – – – – – – –
– I-81 –
Dividends (12) – – – – – – – – – – – – – – – – – –
Repurchase of Class A Ordinary
Shares from one shareholder (13) (111) – – – – – – – – – – – – – – – – –
to acquire operating entities of
Indonesian regional sponsors (14) 55,274 1 – – – – – – – – – – – – – – – –
Issuance of Series C1 Preferred
Shares (15) – – – – – – – – – – – – – – 134,051 1 – –
Shares (16) – – – – – – – – – – – – – – – – 24,441 –
Repurchase of ordinary shares and
preferred shares (17) (4,898) – (3,736) – (1,743) – (1,267) – (6,300) – (524) – (5,972) – – – – –
preferred shares – commitment
(17) – – – – – – – – – – – – – – – – – –
As at December 31, 2021 434,446 4 156,329 2 72,924 1 53,000 – 263,621 3 21,938 – 249,892 3 134,051 1 24,441 –
(5) In February 2021, the Company entered into a share purchase agreement with the Series B+ Preferred Shares investors, pursuant to which, the Company issued
255,864,131 shares of Series B+ Preferred Shares with the total consideration of USD1,822,382,000, recognized as financial liabilities at fair value through profit or loss.
(Note 29).
(6) On December 30, 2020 and February 26, 2021, pursuant to the Company’s share-based payment 2020 Plan (Note 26 (i)), the Company granted 48,017,110 and 5,054,433
Class A Ordinary Shares, respectively, to an entity beneficially owned by a member of key management personnel of the Company (“Company T”), at nil consideration.
The 53,071,543 shares were registered on March 1, 2021, of which 28,807,744 shares were redesignated as Class B Ordinary Shares on the same date. On January 8,
2021, March 31, 2021 and August 31, 2021, the Company further granted 51,051,691, 1,009,964 and 1,009,888 Class A Ordinary Shares respectively, to the Company’s
employees at nil consideration, and the 53,071,543 shares were registered during June 2021 and September 2021. The fair value of the shares granted were recognised
as share-based compensation for employee benefit expenses for the relevant years (Note 26 (i)).
(7) In February 2021, the Company repurchased 3,142,500 Class B Ordinary Shares from Company T, with total consideration of USD22,382,000 (Note 26 (iv)).
APPENDIX I
(8) In April 2021, with the consideration of 32,508,856, 25,669,206, 18,778,451, and 259,202 Class A Ordinary Shares, the Company completed the acquisitions of certain
non-controlling interests of the Chinese subsidiaries, Malaysian subsidiary, Vietnam subsidiary and Cambodia subsidiary, respectively. Details of the acquisitions are set
out in Note 35. These Class A Ordinary Shares were registered later in 2021.
(9) In April 2021, the Company granted 32,820,938 Class A Ordinary Shares to certain employees of the Group. These Class A Ordinary Shares were registered later in 2021
(Note 26 (ii)).
(10) As per relevant agreements, the Group issued 11,210,471 Class A Ordinary Shares of the Company to acquire certain equity interests and to obtain control of 13 operating
entities of Thai regional sponsors. These transactions were completed on June 30, 2021 (Note 36).
(11) In June 2021, Company T transferred 24,263,799 Class A Ordinary Shares of the Company to other parties to fulfil its prior commitments.
(12) In August 2021, the Company declared a cash dividend of 12.0 cents per fully paid ordinary share and preferred share, totalling USD72,244,000 out of the Company’s
share premium account. The dividend was fully paid in November 2021 (Note 43).
(13) In August 2021, the Company repurchased 111,111 Class A Ordinary Shares from one Class A Ordinary Shareholder, with total consideration of USD1,566,000 (Note
26 (iv)).
– I-82 –
(14) As per relevant agreements, the Group obtained control of 25 operating entities of certain Indonesian regional sponsors and issued 55,273,897 Class A Ordinary Shares
to relevant Indonesian regional sponsors. These transactions were completed on August 31, 2021 (Note 37).
(15) Through October to December 2021, the Company entered into share purchase agreements with the Series C1 Preferred Shares investors and pursuant to which, the
Company issued 134,050,964 shares of Series C1 Preferred Shares with the total consideration of USD1,890,125,000, recognized as financial liabilities at fair value
through profit or loss. (Note 29). As at December 31, 2021, the outstanding consideration receivable was USD30,000,000 (Note 22).
(16) In December 2021, the Company entered into share purchase agreements with the Series C2 Preferred Shares investors and pursuant to which, the Company issued
24,440,890 shares of Series C2 Preferred Shares with the total consideration of USD382,877,000, recognized as financial liabilities at fair value through profit or loss.
(Note 26 (v), Note 29). As at December 31, 2021, the outstanding consideration receivable was USD159,922,000 (Note 22).
(17) In December 2021, accompanying with issuance of Series C2 Preferred Shares, the Company entered into agreements with certain existing shareholders to repurchase
48,607,928 shares, among which 24,440,890 shares had been repurchased and deregistered as at December 31, 2021. As to the remaining 24,167,038 shares to be
repurchased, of which 4,843,603 Class A Ordinary Shares and 3,694,268 Class B Ordinary Shares are recognized as treasury shares with certain redemption liabilities
recognized, and rest were related to repurchase of preferred shares with certain derivative financial liabilities recognized. The ordinary shares to be repurchased were
included in the calculation of earnings per share for the year ended December 31, 2021 since such shares remained exposed to certain risks and rewards in relation to
the equity interests. The repurchase and de-registration of remaining shares were completed in 2022 (Notes 26 (v) and 29).
Nominal Nominal
Nominal Nominal Number value of Number value of Nominal Nominal Nominal Nominal Nominal
Number of value of Number of value of of Series Series of Series Series Number of value of Number of value of Number of value of Number of value of Number of value of
Class A Class A Class B Class B Pre-A1 Pre-A1 Pre-A2 Pre-A2 Series A Series A Series B Series B Series B+ Series B+ Series C1 Series C1 Series C2 Series C2
Ordinary Ordinary Ordinary Ordinary Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares Shares
(’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000 (’000) USD’000
As at January 1, 2022 434,446 4 156,329 2 72,924 1 53,000 – 263,621 3 21,938 – 249,892 3 134,051 1 24,441 –
APPENDIX I

Shares (18) – – – – – – – – – – – – – – 13,377 – – –
Shares (19,21) – – – – – – – – – – – – – – – – 31,087 –
preferred shares (20,21) (6,230) – (4,752) – (2,217) – (1,611) – (8,014) – (667) – (7,596) – – – – –
Share-based compensation for
employees (22,23) 1,474 – 22,288 – – – – – – – – – – – – – – –
to network partners in China (24) 38,000 – – – – – – – – – – – – – – – – –
Repurchase of Class A Ordinary
Shares from one shareholder (25) (1,450) – – – – – – – – – – – – – – – – –
As at December 31, 2022 466,240 4 173,865 2 70,707 1 51,389 – 255,607 3 21,271 – 242,296 3 147,428 1 55,528 –
(18) Through January to March 2022, the Company entered into share purchase agreements with the Series C1 Preferred Shares investors and pursuant to which, the Company
issued 13,377,060 shares of Series C1 Preferred Shares with the total consideration of USD189,024,000, recognized as financial liabilities at fair value through profit
– I-83 –
or loss. (Note 29).
(19) Through January to March 2022, pursuant to the agreements, the Company issued 24,167,038 shares of Series C2 Preferred Shares to certain third-party investors.
(20) Through January to March 2022, accompanying with issuance of Series C2 Preferred Shares, pursuant to relevant the agreements, the Company repurchased the
24,167,038 shares, including 4,843,603 Class A Ordinary Shares, 3,694,268 Class B Ordinary Shares, 1,723,288 Series Pre-A1 Preferred Shares, 1,252,460 Series Pre-A2
Preferred Shares, 6,229,713 Series A Preferred Shares, 518,425 Series B Preferred Shares and 5,905,281 Series B+ Preferred Shares (Notes 26 (v) and 29).
(21) In August 2022, the Company further entered into agreements with certain personals and third-party investors to repurchase 1,386,996 Class A Ordinary Shares, 1,057,875
Class B Ordinary Shares, 493,474 Series Pre-A1 Preferred Shares, 358,650 Series Pre-A2 Preferred Shares, 1,783,917 Series A Preferred Shares, 148,454 Series B
Preferred Shares and 1,691,013 Series B+ Preferred Shares, and issued 6,920,379 Series C2 Preferred Shares as the consideration (Note 26 (v)).
(22) In April 2022, the Company granted 1,474,280 Class A Ordinary Shares to employees of the Group at nil consideration, and the shares granted were fully vested on the
grant date (Note 26 (i)).
(23) Through October 2021 to March 2022, the Company granted 22,287,975 Class A Ordinary Shares to certain key management personnel at nil consideration and the shares
granted were fully vested on relevant grant dates. The shares were registered in March 2022 and redesignated as Class B Ordinary Shares on the same date (Note 26 (i)).
(24) In September 2022, the Company issued 38,000,000 Class A Ordinary Shares for the purpose to carry out its 2022 Incentive Plan, of which 29,502,660 Class A Ordinary
Shares are treasury shares (Note 26 (viii)).
(25) In September 2022, the Company repurchased 1,449,568 Class A Ordinary Shares at fair market value from certain Class A Ordinary Shareholders, with total consideration
of USD15,294,000, of which USD11,601,000 had been paid in the year ended December 31, 2022 (Note 26 (iv)).
26. SHARE-BASED COMPENSATION

2020 2021 2022
USD’000 USD’000 USD’000
Share-based compensation – related to employee

benefit expenses (Note 8):
Employee benefit expenses – shares granted to
employees under “J&T Global Express Limited
2020 Share Incentive Plan” (“2020 Plan”) (i) 161,073 213,314 239,521
Employee benefit expenses – shares granted to
regional sponsors as employees (ii) – 141,344 –
Equity interests transferred to management team
of the cross-border business (iii) – 27,936 4,583
161,073 382,594 244,104
Share-based compensation – related to equity

transactions (Note 9):
Repurchase of Class A and Class B Ordinary
Shares (iv) – 10,652 4,292
Ordinary shares and preferred shares repurchased
accompanying Series C2 Preferred Shares
issuance (v) – 105,910 16,480
Ordinary shares and preferred shares to be
repurchased accompanying Series C2 Preferred
Shares issuance (v) – 106,566 –
Issuance of preferred shares (vi) 27,229 9,310 16,490
Issuance of JNT KSA shares (vii) – 3,980 –
27,229 236,418 37,262
Issuance of ordinary shares to network partners

and regional sponsors under “J&T Global
Express Limited Equity Incentive Plan” (“2022
Incentive Plan”) (viii) – – 65,193
188,302 619,012 346,559
(i) Shares granted to employees under 2020 Plan
In December 2020, the board of directors of the Company approved the establishment of 2020 Plan with the
purpose of attracting, motivating, retaining, and rewarding certain members of management and employees.
The awards that may be awarded or granted under 2020 plan include options, RSUs, restricted shares, dividend
equivalents, deferred shares, share payments, share appreciation rights and other awards. Pursuant to the
Second Amended and Restated Shareholder Agreement signed on December 30, 2020, the maximum number
of shares that may be issued under 2020 Plan shall be 101,088,653 Class A Ordinary Shares, which was further
expanded in February 2021 accompanying the closing of Series B+ financing, and during October 2021 to
March 2022 accompanying the closing of Series C1 financing and certain extraordinary general meeting of the
shareholders of the Company.
On December 30, 2020 and February 26, 2021, the Company granted 48,017,110 and 5,054,433 Class A
Ordinary Shares, respectively, to a member of key management personnel at nil consideration, and the shares
granted were fully vested on the grant dates. The 53,071,543 shares were registered on March 1, 2021, of
which 28,807,744 shares were redesignated as Class B Ordinary Shares on the same date (Note 25).
– I-84 –
Through October to December 2021, the Company granted 1,340,510 Class A Ordinary Shares to the
abovementioned key management personnel at nil consideration. Through January to March 2022, the
Company further granted 20,947,465 Class A Ordinary Shares to this key management personnel at nil
consideration. These shares granted were fully vested on relevant grant dates, then registered in March 2022
and redesignated as Class B Ordinary Shares on the same date (Note 25).
On January 8, 2021, March 31, 2021, August 31, 2021 and April 8, 2022, the Company granted 51,051,691,
1,009,964, 1,009,888 and 1,474,280, respectively, totalling 54,545,823 Class A Ordinary Shares to employees
of the Group at nil consideration, and the shares granted were fully vested on the grant date. The shares were
registered in June 2021, September 2021 and April 2022 respectively (Note 25).
The fair values of the Company’s ordinary shares granted under 2020 Plan are as follows:
Employee
benefit
Weighted expenses –
Number of average fair share-based
ordinary value per compensation
shares share in USD expenses
USD’000
Granted during year 2020 48,017,110 3.35 161,073

The Company appointed an external valuer to provide assistance in the valuation of the fair value of its
ordinary shares at the grant dates. The discounted cash flow method was adopted to determine the underlying
equity fair value of the Group and the equity allocation model was applied to determine the fair value of the
underlying ordinary shares of the Company. Key assumptions, such as discount rate and projections of future
performance, are required to be determined by the Company with best estimate.
The total expenses recognized in the consolidated income statements with a corresponding increase in
share-based compensation reserve for the abovementioned share-based awards granted were USD161,073,000,
USD213,314,000 and USD239,521,000 for the years ended December 31, 2020, 2021, and 2022, respectively.
All shares were vested upon the grant date without any outstanding unvested shares as at December 31, 2020,
2021, and 2022.
(ii) Shares granted to regional sponsors as employees
On April 30, 2021, in addition to the abovementioned 2020 Plan, the Company granted 32,820,938 Class A
Ordinary Shares to certain regional sponsors, who are employees of the Group. The shares granted vested
immediately upon the grant date, with a fair value amount of USD141,344,000 and fully charged to employee
benefit expenses – share-based compensation expenses during the year ended December 31, 2021. The
abovementioned Class A Ordinary Shares were registered later in 2021 (Note 25).
(iii) Equity interests transferred to management team of the cross-border business
On September 30, 2021, through a reorganization of the cross-border service business, the relevant
management team of cross-border business of the Group was awarded a portion of equity interests of the
cross-border business of the Group at nil consideration and fully vested on the grant date. The carrying amount
of the relevant equity interests of the cross-border business of the Group was approximately USD12,556,000.
The fair value of such equity interests awarded was estimated to be approximately USD27,936,000, which was
recognized as share-based compensation expenses. An increase of USD15,380,000 in share-based
compensation reserve was recognized, representing the difference between the fair value and carrying amount
of the relevant equity interests of the cross-border business of the Group.
– I-85 –
In January 2022, the relevant management team of cross-border business of the Group invested approximately
USD6,274,000 and obtained a portion of equity interests of the cross-border business of the Group, the fair
value of which amounted to USD10,857,000. The difference between such consideration and the fair value of
such equity interests amounted to USD4,583,000, which was recognized as share-based compensation
expenses and an increase of USD6,025,000 in other reserve was recognized, representing the difference
between the fair value and carrying amount of the abovementioned equity interests.
(iv) Repurchase of Class A and Class B Ordinary Shares
On February 26, 2021, the Company repurchased 3,142,500 Class B Ordinary Shares from an entity
beneficially owned by a member of key management personnel of the Company (“Company T”), with total
consideration of USD22,382,000 (Note 25). The difference between such consideration and the fair value of
the repurchased shares amounted to USD9,651,000, which was recognized as share-based compensation
expenses during the year ended December 31, 2021.
On August 31, 2021, the Company repurchased 111,111 Class A Ordinary Shares from one shareholder of the
Company, with total consideration of USD1,566,000 (Note 25). The difference between such consideration and
the fair value of the repurchased shares amounted to USD1,001,000, which was recognized as share-based
compensation expenses during the year ended December 31, 2021.
On September 30, 2022, the Company repurchased 1,449,568 Class A Ordinary Shares from certain
shareholders of the Company, with total consideration of USD15,294,000 (Note 25). The difference between
such consideration and the fair value of the repurchased shares amounted to USD4,292,000, which was
recognized as share-based compensation expenses during the year ended December 31, 2022.
(v) Repurchase of ordinary shares and preferred shares in relation to Series C2 Preferred Shares issuance
On December 31, 2021, the Company entered into agreements with a number of third-party investors to issue
Series C2 Preferred Shares, with the total consideration of USD761,465,000 for 48,607,928 Series C2
Preferred Shares of the Company. Simultaneously, the Company entered into agreements with its certain
existing shareholders to repurchase 48,607,928 ordinary and preferred shares of the Company (see the table
below), at the same amount with the consideration as the abovementioned Series C2 Preferred Shares.
On December 31, 2021, 24,440,890 Series C2 Preferred Shares with consideration of USD382,877,000 were
issued (Note 25), and the same number of ordinary and preferred shares were repurchased by the Company at
the same consideration (Note 25) and de-registered. As at December 31, 2021, USD222,955,000 of the
abovementioned consideration was settled along with the consideration for the repurchase of relevant ordinary
shares and preferred shares. The remaining consideration of USD159,922,000 was recorded as receivable of
Series C2 Preferred Share consideration (Note 22) and consideration payable for repurchase of ordinary shares
and preferred shares (Note 32) on the Group’s consolidated balance sheet as at December 31, 2021, which were
settled on a net basis in 2022.
The remaining 24,167,038 Series C2 Preferred Shares were issued in January and March 2022.
– I-86 –
On December 31, 2021, the number of ordinary and preferred shares repurchased and to be repurchased and
their respective fair values are set out below:
Fair value as at Share-based

the repurchase Number of Repurchase compensation
date shares consideration expenses
USD’000 USD’000 USD’000
Repurchased
Class A Ordinary Shares 52,046 4,898,491 76,737 24,691
Class B Ordinary Shares 39,696 3,736,129 58,528 18,832
Series Pre-A1 Preferred Shares 18,900 1,742,815 27,302 8,402
Series A Preferred Shares 71,311 6,300,306 98,697 27,386
Series B Preferred Shares 6,125 524,299 8,213 2,088
Series B+ Preferred Shares 75,151 5,972,197 93,557 18,406
276,967 24,440,890 382,877 105,910
To be repurchased
Series B Preferred Shares 6,016 518,425 8,121 2,105
272,022 24,167,038 378,588 106,566
548,989 48,607,928 761,465 212,476
Shares repurchased in 2021
For the ordinary and preferred shares that had been repurchased as at December 31, 2021, share-based
compensation expenses of USD105,910,000 was recognized during the year ended December 31, 2021, and
such amount represented the difference between (i) the repurchase consideration of USD382,877,000 and (ii)
the fair values of the relevant ordinary and preferred shares at the repurchase date of December 31, 2021.
Shares repurchased in 2022
For the abovementioned 4,843,603 Class A ordinary shares and 3,694,268 Class B ordinary shares, totalling
8,537,871 ordinary shares, share-based compensation expenses of USD43,669,000 was recognised for the year
ended December 31, 2021. The amount represented the difference between (i) the repurchase consideration of
USD133,749,000 which was recognized as financial liabilities – ordinary share redemption liabilities (Note
29) and (ii) the fair values of such ordinary shares as at December 31, 2021. These ordinary shares were
reclassified as treasury shares as at December 31, 2021 and repurchased in January and March 2022. The
ordinary shares reclassified as treasury shares were included in the calculation of earnings per share for the
year ended December 31, 2021 since such shares remained exposed to certain risks and rewards in relation to
the equity interests.
For the abovementioned 15,629,167 preferred shares, share-based compensation expenses of USD62,897,000
for the year ended December 31, 2021, and derivative financial liabilities at fair value through profit or loss
for the same amount as at December 31, 2021 (Note 29), were recognized in the Group’s consolidated financial
statements. The amount represented the difference between (i) the repurchase consideration of
USD244,839,000 and (ii) the carrying amount of financial liabilities at fair value through profit or loss in
relation to the relevant preferred shares. These preferred shares were repurchased in January and March 2022.
– I-87 –
The abovementioned 24,167,038 Series C2 Preferred Shares were issued concurrently in January and March
2022.
In August 2022, the Company further entered into agreements with certain personals and third-party investors
to repurchase 1,386,996 Class A Ordinary Shares, 1,057,875 Class B Ordinary Shares, 493,474 Series Pre-A1
Preferred Shares, 358,650 Series Pre-A2 Preferred Shares, 1,783,917 Series A Preferred Shares, 148,454 Series
B Preferred Shares and 1,691,013 Series B+ Preferred Shares, and issued 6,920,379 Series C2 Preferred Shares
as the consideration. The difference between such consideration and the fair value of the repurchased shares
amounted to USD16,480,000, which was recognized as share-based compensation expenses during the year
ended December 31, 2022.
Fair value as at Share-based

the repurchase Number of Repurchase compensation
date shares consideration expenses
USD’000 USD’000 USD’000

Series Pre-A1 Preferred Shares 3,836 493,474 5,111 1,275
Series Pre-A2 Preferred Shares 2,788 358,650 3,715 927
Series B Preferred Shares 1,207 148,454 1,538 331
55,196 6,920,379 71,676 16,480
(vi) Issuance of preferred shares
In December 2020, after entering into an agreement with a third-party investor, the Company raised Series B
financing with the total amount of USD100,000,000 by issuance of 22,462,293 Series B Preferred Shares. The
fair value of all the Series B Preferred Shares was approximately USD127,229,000, and the difference of
USD27,229,000 between the fair value and the total consideration received was considered as a compensation
for the unidentifiable service from such investor, and recognized as share-based compensation expenses.
Through October to December 2021, the Company entered into agreements with a number of third-party
investors to raise Series C1 financing, with the total amount of USD1,890,125,000 by issuance of 134,050,964
Series C1 Preferred Shares. The fair value of all the Series C1 Preferred Shares was approximately
USD1,899,435,000, and the difference between such fair value and the total consideration received with the
amount of USD9,310,000 was considered as a compensation for the unidentifiable service from such investors,
and recognized as share-based compensation expenses.
Through January to March 2022, the Company entered into agreements with a number of third-party investors
to further raise Series C1 financing, with the total amount of USD189,024,000 by issuance of 13,377,060
Series C1 Preferred Shares. The fair value of all the Series C1 Preferred Shares was approximately
USD205,514,000, and the difference between such fair value and the total consideration received with the
amount of USD16,490,000 was considered as a compensation for the unidentifiable service from such
investors, and recognized as share-based compensation expenses.
– I-88 –
(vii) Issuance of JNT KSA shares
JNT Express KSA LLC (“JNT KSA”) is a non-wholly owned subsidiary of the Group operating in Saudi
Arabia, established in 2021. The shares of JNT KSA held by a third-party investor were entitled to an exit right
as below and were recognized as financial liabilities – redemption liabilities of shares of JNT KSA.
Exit right
After the fifth anniversary of the closing date and so long as JNT KSA maintains its business operation, the
abovementioned investor shall have an exit right for the purpose of disposing of all (but not less than all) of
its shares.
The exit price will be subject to certain agreements between the Group and the third-party investor. Upon
receiving the exit right exercise notice, the Company shall issue to the abovementioned investor a number of
shares of the Company substantially equal to the result of (i) the exit price divided by (ii) the applicable share
price of the Company. If the Company is not publicly listed as at the exit date, the satisfactory information
evidencing the Company’s share price shall be provided to the exiting shareholder.
The fair value of the abovementioned shares of JNT KSA held by the third-party investor along with the exit
right entitled was USD23,980,000, being the present value of the expected redemption amount, which
exceeded the injected capital from the investor of USD20,000,000, the difference of USD3,980,000 was
considered as a compensation for the unidentifiable service from such investor, and recognized as share-based
compensation expenses for the year ended December 31, 2021.
The Company accounted such shares and exit right as a redemption liability at the amount of USD23,980,000
at initial recognition. As at December 31, 2022, the carrying amount of such redemption liability was
USD30,583,000 (2021: USD25,458,000).
(viii) Issuance of ordinary shares to network partners under 2022 Incentive Plan
In 2022, the board of directors of the Company approved the establishment of the 2022 Incentive Plan for the
purpose of enhancing the bonding between the interests of the Group and relevant regional sponsors and
network partners.
Pursuant to the 2022 Incentive Plan, the maximum number of shares that may be issued shall be 38,000,000
Class A Ordinary Shares.
On September 28, 2022, the Company granted certain network partners 6,330,100 ordinary shares under the
abovementioned plan with the total consideration of USD44,579,000. Pursuant to relevant award agreements,
the vesting schedule is as follows, on the condition that the network partners will remain in service.
Percentage of
Vesting date shares vested
September 28, 2023 30%

Upon the termination of service, the unvested portion of ordinary shares shall be returned to the Company, and
the Company shall also refund the relevant purchase price.
Pursuant to the relevant agreements, the unvested portion of the ordinary shares are not entitled to any voting
power or dividends.
– I-89 –
A summary of activities of the shares granted under such plan is presented as follows:

Weighted average
Number of grant-date
ordinary shares fair value
USD per share
At beginning of the period – –

Granted 6,330,100 7.59
Vested – –
Forfeited or cancelled – –
At end of the period 6,330,100 7.59
In addition to the abovementioned shares granted with considerations and vesting schedule listed above, the
2022 Incentive Plan also include certain number of ordinary shares to be granted with various vesting
arrangements and with nil consideration.
Ordinary shares granted with “fast-track” vesting schedule
On September 28, 2022, the Company granted certain network partners 90,000 ordinary shares at nil
consideration, the fair value of which was USD683,000. Pursuant to the relevant award agreements, these
ordinary shares will fully vest on September 28, 2023 on the condition that the network partners will remain
in service.
Upon the termination of service, the unvested portion of ordinary shares shall be returned to the Company.
Pursuant to the relevant agreements, the unvested portion of the ordinary shares are not entitled to any voting
power or dividends.
Ordinary shares granted with no vesting schedule
On September 28, 2022, the Company granted certain network partners 8,497,340 ordinary shares at nil
consideration, the fair value of which was USD64,498,000. Pursuant to the relevant award agreements, these
shares granted immediately vest upon the grant date.
The Company appointed an external valuer to provide assistance in the valuation of the fair value of its
ordinary shares at the grant dates. The discounted cash flow method was adopted to determine the underlying
equity fair value of the Group and the equity allocation model was applied to determine the fair value of the
underlying ordinary shares of the Company. Key assumptions, such as discount rate and projections of future
performance, are required to be determined by the Company with best estimate. As the shares granted to
network partners in 2022 under the 2022 Incentive Plan were not linked to distinct goods or services, such
shares granted were considered as payments to customers. Revenue with a total amount of approximately
USD65,193,000 was reduced for the year ended December 31, 2022, representing the difference between the
total consideration received and the fair value of the abovementioned vested shares at the grant date, with a
corresponding increase in share-based compensation reserve.
– I-90 –
27. SHARE PREMIUM AND OTHER RESERVES
(a) Share premium
Group
Total
USD’000
As at January 1, 2020 216,628

Issuance of Series A Preferred Shares (Note 25) 1,186,630
Reclassification of Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares
and Series A Preferred Shares (Note 29) (1,370,074)
As at December 31, 2020 33,184
As at January 1, 2021 33,184

Issuance of Class A Ordinary Shares pursuant to transactions with non-controlling
interests (Notes 25 and 35) 332,528
Business acquisition of Thai and Indonesian operating entities of regional sponsors
and others (Notes 25, 36 and 37) 332,485
Dividend (Note 43) (72,244)
Repurchase of ordinary shares (Notes 25, 26 and 29) (9,329)
Repurchase of ordinary shares – commitment (Notes 25, 26 and 29) (8,890)
As at December 31, 2021 607,734
As at January 1, 2022 607,734

As at December 31, 2022 603,829
Company
Total
USD’000
As at January 1, 2020 217,954

Issuance of Series A Preferred Shares (Note 25) 1,186,630
Reclassification of Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares
and Series A Preferred Shares (Note 29) (1,370,074)
As at December 31, 2020 34,510
As at January 1, 2021 34,510

Issuance of Class A Ordinary Shares pursuant to transactions with non-controlling
interests (Notes 25 and 35) 332,528
Business acquisition of Thai and Indonesian operating entities of regional sponsors
and others (Notes 25, 36 and 37) 332,485
Dividend (Note 43) (72,244)
Repurchase of ordinary shares – commitment (Notes 25, 26 and 29) (8,890)
As at December 31, 2021 609,060
As at January 1, 2022 609,060

As at December 31, 2022 605,155
– I-91 –
(b) Other reserves
Group
Share-based
compensation Translation
reserve reserve Others Total
USD’000 USD’000 USD’000 USD’000
As at January 1, 2020 – (622) – (622)

Reclassification of Series Pre-A1
Preferred Shares, Series Pre-A2
Preferred Shares and Series A
Preferred Shares (Note 29) – – (315,612) (315,612)
Employee benefit expenses – Share-
based compensation (Note 26) 161,073 – – 161,073
Transaction with non-controlling
interests – – 1,633 1,633
Currency translation differences – (12,806) – (12,806)
Other – – (134) (134)
As at December 31, 2020 161,073 (13,428) (314,113) (166,468)
As at January 1, 2021 161,073 (13,428) (314,113) (166,468)

Other comprehensive loss – resulted
from change of credit risk of
financial liabilities measured at
fair value – – (24,874) (24,874)
Issuance of convertible preferred
shares (Notes 25 and 29) – – (4) (4)
Share-based compensation (Note 26) 370,037 – – 370,037
interests (Note 35) – – (514,661) (514,661)
Disposal of subsidiaries – – (604) (604)
convertible preferred shares
(Notes 25 and 26) – – (95,710) (95,710)
Repurchase of ordinary shares –
commitment (Notes 25 and 26) – – (81,190) (81,190)
Others – – 625 625
At December 31, 2021 531,110 (26,401) (1,030,531) (525,822)
– I-92 –
Share-based
compensation Translation
reserve reserve Others Total
USD’000 USD’000 USD’000 USD’000
As at January 1, 2022 531,110 (26,401) (1,030,531) (525,822)

Other comprehensive loss – resulted
from change of credit risk of
financial liabilities measured at
fair value – – 9,875 9,875
Share-based compensation (Note 26) 239,521 – – 239,521
interests (Note 35) – – 6,025 6,025
Issuance of ordinary shares pursuant
to the 2022 Incentive Plan – – 71,886 71,886
convertible preferred shares
(Notes 25 and 26) – – (25,654) (25,654)
Issuance of ordinary shares of the
Company’s subsidiary pursuant to
the acquisition of the operating
entity of Brazilian regional
sponsors (Note 17) – – 36,323 36,323
Others – – 781 781
At December 31, 2022 770,631 (273,444) (931,295) (434,108)
In February, August and December 2021, January, March, August and September 2022 (Note 26 (iv)), the
Company repurchased certain number of ordinary shares and preferred shares. For those repurchased ordinary
shares, the differences between the carrying values (historical cost) and the fair values of such repurchased
shares as at repurchase date were substantially recorded in other reserves, while the differences between the
fair values of such repurchased shares as at repurchase date and the relevant repurchase considerations of such
shares were substantially recorded as share-based compensation expenses. For those repurchased preferred
shares which were already carried at fair value and recognised as financial liabilities at fair value through
profit or loss, the difference between the carrying values (fair values) as at repurchase date and relevant
repurchase considerations of such shares were substantially recorded as share-based compensation expenses.
Company
Share-based
compensation
reserve Others Total
USD’000 USD’000 USD’000
As at January 1, 2020 – – –
Reclassification of Series Pre-A1 Preferred
Shares, Series Pre-A2 Preferred Shares and
Series A Preferred Shares (Note 29) – (315,612) (315,612)
Employee benefit expenses – Share-based
compensation (Note 26) 161,073 – 161,073
As at December 31, 2020 161,073 (315,612) (154,539)
– I-93 –
Share-based
compensation
reserve Others Total
USD’000 USD’000 USD’000
As at January 1, 2021 161,073 (315,612) (154,539)

Share-based compensation (Note 26) 354,657 – 354,657
Repurchase of ordinary shares and preferred
shares (Notes 25 and 26) – (95,710) (95,710)
Issuance of convertible preferred shares
(Notes 25 and 29) – (4) (4)
Other comprehensive loss – resulted from change
of credit risk of financial liabilities measured
at fair value – (24,780) (24,780)
Repurchase of ordinary shares – commitment
(Notes 25 and 26) – (81,190) (81,190)
As at December 31, 2021 515,730 (517,296) (1,566)
As at January 1, 2022 515,730 (517,296) (1,566)

Share-based compensation (Note 26) 239,521 – 239,521
Repurchase of ordinary shares and preferred
shares (Notes 25 and 26) – (25,654) (25,654)
Issuance of ordinary shares pursuant to the 2022
Incentive Plan (Note 26) – 71,886 71,886
Other comprehensive loss – resulted from change
of credit risk of financial liabilities measured
at fair value – 10,321 10,321
As at December 2022 755,251 (460,743) 294,508
28. BORROWINGS
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Non-current
Borrowings from financial institutions (i) 6,001 21,714 1,020,897
Borrowings from related parties (Note 39) 20,516 7,075 –
Borrowings from third parties 10,400 273 –
36,917 29,062 1,020,897
Current
Borrowings from financial institutions (i) 4,807 41,025 74,480
Borrowings from related parties (Note 39) 147,104 7,395 –
Borrowings from third parties (ii) 255,232 11,545 3,000
407,143 59,965 77,480
Total borrowings 444,060 89,027 1,098,377
– I-94 –
(i) As at December 31, 2020, 2021 and 2022, borrowings from financial institutions of USD10,808,000,
USD30,581,000 and USD1,095,377,000 respectively, were substantially secured by the pledges of bank
deposits (Note 23), and property, plant and equipment (Note 15), supported by guarantees from certain
regional sponsors, as well as debentures over the items including but not limited to the shares the
Company holds in certain subsidiaries, certain receivables, bank accounts, material intellectual property
and other assets of the Group. The Group was in compliance with the relevant borrowing covenants
In addition, as at December 31, 2021, borrowings from financial institutions with an amount of
USD32,158,000 were assumed from the acquisition of Best Inc.’s express business in China (Note 38),
and were secured by the pledge of property, plant and equipment with carrying amount of
USD14,702,000 (Note 15) and supported by guarantees from by Best Inc.. Such borrowings were settled
in year 2022.
(ii) As at December 31, 2020, the outstanding Series A Preferred Share consideration from one of the Series
A Preferred Share investors was around USD236,862,000. Considering such investor provided a series
of outstanding borrowings to the Group’s subsidiaries in the PRC through its affiliates, generally with
a repayment term of 12 months and interest free, minimal credit risk was identified for the receivable
of Series A Preferred Share consideration (Note 22). As at December 31, 2022, the abovementioned
outstanding Series A Preferred Share consideration had been received, and the corresponding
outstanding borrowings had also been repaid.
(iii) As at December 31, 2020, 2021, and 2022, the borrowings were generally due within 1 month to 5 years,
and the borrowings from related parties and third parties were not secured. The weighted average
interest rates per annum as at December 31, 2020, 2021, and 2022 were 2.94%, 3.32%, and 6.29%
respectively.
(iv) At December 31, 2020, 2021, and 2022, the Group’s borrowings were repayable as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Within 1 year 407,143 59,965 77,480

Between 1 and 2 years 16,922 23,039 38,493
Between 2 and 5 years 19,995 6,023 982,404
444,060 89,027 1,098,377
The fair values of the borrowings were not materially different from their carrying amounts since the
interest payable on those borrowings is either close to current market rates or the borrowings are of a
short-term nature.
– I-95 –
29. FINANCIAL LIABILITIES
(a) Financial liabilities at fair value through profit or loss
Group
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Convertible preferred shares of the Company

– Series Pre-A1 Preferred Shares 271,150 785,363 537,970
– Series A Preferred Shares 1,217,407 2,963,550 1,998,989
– Series B Preferred Shares 127,229 254,591 169,395
– Series B+ Preferred Shares – 3,124,776 2,045,614
– Series C1 Preferred Shares – 2,056,644 1,503,377
– Series C2 Preferred Shares – 382,877 566,576
Shares of the Company’s subsidiaries

– Series A Preferred Shares of JET Global
Express Limited (“JET Global”) – 285,762 552,134
Derivatives
– Commitment to repurchase preferred shares – 62,897 –
1,812,915 10,487,306 7,765,067
Company
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000

– Series A Preferred Shares 1,217,407 2,963,550 1,998,989
– Series B Preferred Shares 127,229 254,591 169,395
– Series B+ Preferred Shares – 3,124,776 2,045,614
– Series C1 Preferred Shares – 2,056,644 1,503,377
– Series C2 Preferred Shares – 382,877 566,576
Derivatives
– Commitment to repurchase preferred shares – 62,897 –
1,812,915 10,201,544 7,212,933
– I-96 –
(i) Series B Preferred Shares
In December 2020, after entering into an agreement with a third-party investor, the Company raised
Series B financing with total consideration of USD100,000,000 by issuance of 22,462,293 Series B
Preferred Shares. The fair value of all the Series B Preferred Shares issued was around
USD127,229,000. The difference of USD27,229,000 between such fair value and the total consideration
received was recognized as share-based compensation expenses (Note 26 (vi)).
(ii) Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares and Series A Preferred Shares
Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares and Series A Preferred Shares were
initially recognized as equity. On December 30, 2020, along with the issuance of Series B Preferred
Shares, the Company promulgated an updated memorandum of association. According to the
memorandum of association, certain shareholders are able to discretionarily trigger the drag-along sale,
and in which all assets and funds of the Company legally available for distribution to the shareholders
shall be distributed. Consequently, Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares and
Series A Preferred Shares were reclassified as financial liabilities measured at fair value through profit
or loss (Note 25).
Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred Shares and Series A Preferred Shares were
reclassified from equity as financial liabilities measured at fair value through profit or loss on December
30, 2020.
As at December 30, 2020, the effect of such reclassification is as follows:
USD’000
Carrying amount of Series Pre-A1 Preferred Shares 103,408

Carrying amount of Series Pre-A2 Preferred Shares 80,037
Carrying amount of Series A Preferred Shares 1,186,633
1,370,078
Less:
Nominal value of Series Pre-A1 Preferred Shares, Series Pre-A2 Preferred
Shares and Series A Preferred Shares remained in equity (4)
Fair value of Series Pre-A1 Preferred Shares (271,150)
Fair value of Series Pre-A2 Preferred Shares (197,129)
Fair value of Series A Preferred Shares (1,217,407)
Movement of other reserves (315,612)
(iii) Series B+ Preferred Shares
In February 2021, the Company entered into agreements with a number of third-party investors to raise
Series B+ financing, with total consideration of USD1,822,382,000 by issuance of 255,864,131 Series
B+ Preferred Shares. The fair value of Series B+ Preferred Shares at issuance was the same as the
consideration.
(iv) Series C1 and C2 Preferred Shares
Through October to December 2021, the Company entered into agreements with a number of third-party
investors to raise Series C1 financing, with total consideration of USD1,890,125,000 by issuance of
134,050,964 Series C1 Preferred Shares. The fair value of Series C1 Preferred Shares at issuance was
USD1,899,435,000. The difference of USD9,310,000 between the fair value and the total consideration
– I-97 –
Through January to March 2022, the Company entered into agreements with a number of third-party
investors to raise Series C1 financing, with total consideration of USD189,024,000 by issuance of
13,377,060 Series C1 Preferred Shares. The fair value of Series C1 Preferred Shares at issuance was
USD205,514,000. The difference of USD16,490,000 between the fair value and the total consideration
On December 31, 2021, the Company entered into agreements with a number of third-party investors
to issue Series C2 Preference Shares, with total consideration of USD761,465,000 by issuance of
48,607,928 Series C2 Preferred Shares. As at December 31, 2021, 24,440,890 Series C2 Preferred
Shares were issued at consideration of USD382,877,000 which was also the fair value of the shares at
issuance and as at December 31, 2021. The remaining 24,167,038 Series C2 Preferred Shares was issued
in January and March 2022 (Note 26 (v)).
In August 2022, the Company further entered into agreements with certain personals and third-party
investors to repurchase 1,386,996 Class A Ordinary Shares, 1,057,875 Class B Ordinary Shares, 493,474
Series Pre-A1 Preferred Shares, 358,650 Series Pre-A2 Preferred Shares, 1,783,917 Series A Preferred
Shares, 148,454 Series B Preferred Shares and 1,691,013 Series B+ Preferred Shares, and issued
6,920,379 Series C2 Preferred Shares as the consideration. The difference between such consideration
and the fair value of the repurchased shares amounted to USD16,480,000, which was recognized as
share-based compensation expenses during the year ended December 31, 2022. (Note 26 (v)).
The Group designated Series B Preferred Shares, Series B+ Preferred Shares, Series C1 Preferred Shares
and Series C2 Preferred Shares as financial liabilities at fair value through profit or loss at initial
recognition upon issuance of shares.
(v) Rights, preferences and privileges of the Group’s convertible preferred shares
The rights, preferences and privileges of the above convertible preferred shares are as follows:
Dividend rights
The directors of the Company may, upon approval by the majority of preferred shareholders, declare
dividends and distributions on shares in issue and authorise payment of funds under such dividends or
distributions out of the funds of the Company lawfully available therefor. All such payments shall be
distributed pro rata among all holders of the ordinary shares and preferred shares (on an as converted
basis).
Conversion rights
Each preferred share may, at the option of the holder thereof, be converted at any time after the date of
issuance of such preferred shares into Class A Ordinary Shares, or shall automatically be converted into
Class A Ordinary Shares upon the closing of an IPO of the Company.
The conversion ratio for the preferred shares to the Class A Ordinary Shares is 1:1 if no adjustments to
conversion price have occurred. As at December 31, 2022, each convertible preferred share is
convertible into one Class A Ordinary Share.
Voting rights
The holder of each Class A Ordinary Share issued and outstanding shall have one vote for each Class
A Ordinary Share held by such holder, the holder of each Class B Ordinary Share issued and outstanding
shall have twenty votes for each Class B Ordinary Share held by such holder, and the holder of each
preferred share shall be entitled to the number of votes equal to the whole number of Class A Ordinary
Shares into which such preferred share could be converted.
Notwithstanding the above, in the event that the voting power of the collective total amount of issued
and outstanding Class B Ordinary Shares ever falls lower than 70% of the entire voting power of the
total issued and outstanding shares of the Company, the number of votes allotted to each issued and
outstanding Class B Ordinary Share shall be automatically adjusted to the nearest whole number of votes
that would result in the issued and outstanding Class B Ordinary Shares holding at least 70% of the
entire voting power of the total issued and outstanding shares of the Company.
– I-98 –
Liquidation preferences
Each holder of preferred shares and ordinary shares shall be entitled to receive for each series of
preferred shares and ordinary shares he or it holds on the preferential basis, prior and in preference to
any distribution of any of the assets or surplus funds of the Company to the holders of other series of
preferred shares and ordinary shares or any other class or series of shares by reason of their ownership
of such shares, the amount equal to one hundred percent (100%) of the respective applicable issue price,
plus (a) all interest that would accrue on the applicable issue price during the period from the relevant
issue date to the date of receipt by the holder thereof of the full liquidation amount at a rate of 6% per
annum, plus (b) declared but unpaid dividends for holders of ordinary shares and preferred shares,
respectively.
If the assets and funds available for distribution shall be insufficient to permit the payment to such
holders of the full preferred preference amount, the liquidation preference amount will be paid to the
holders of preferred shares and ordinary shares in the following order: first to holders of Series C1
Preferred Shares, second to holders of Series C2 Preferred Shares, third to holders of Series B+
Preferred Shares, forth to holders of Series B Preferred Shares, fifth to holders of Series A Preferred
Shares, and lastly to the holders of Series Pre-A1 Preferred Share, the holders of Series Pre-A2 Preferred
Share and the holders of ordinary share (collectively, the “Early Holders”). After distributing or paying
in full the liquidation preference amount to all of the holders of preferred shares and ordinary shares,
the remaining assets of the Company available for distribution to members, if any, shall be distributed
to the holders of the preferred shares and ordinary shares on a pro rata basis, based on the number of
ordinary shares then held by each holder on an as-converted basis.
Redemption rights
The Series B Preferred Shares, Series B+ Preferred Shares, Series C1 Preferred Shares and Series C2
Preferred Shares are entitled the redemption right. These convertible preferred shares issued by the
Company are redeemable at a price equal to the applicable purchase price plus all accrued interest and
declared but unpaid dividends, payable in cash, at any time after the earliest of (i) March 1, 2026, (ii)
the occurrence of a material breach, or fraud or wilful misconduct by the Group or founder parities in
its performance of the transaction documents, which remains uncured for ninety (90) days upon written
notification from any holder of Series B Preferred Shares, Series B+ Preferred Shares, Series C1
Preferred Shares or Series C2 Preferred Shares, (iii) the occurrence of a material adverse effect, or (iv)
the request by any holder of Series B Preferred Shares, Series B+ Preferred Shares, Series C1 Preferred
Shares or Series C2 Preferred Shares exercising its redemption rights under (i), (ii) or (iii) to redeem
all or a portion of the equity securities held by it.
The redemption price payable on each of the abovementioned convertible preferred shares is the
applicable purchase price for each share, plus (a) all interest that would accrue on applicable purchase
price during the period from the relevant issue date to the date of receipt by the holder thereof of the
full redemption amount at a rate of 8% per annum, plus (b) all declared but unpaid dividends on the
abovementioned convertible preferred shares through the date of receipt by the holder of the full
redemption amount thereof.
The aforementioned redemption right is not given to the holders of Series A Preferred Share, the holders
of Series Pre-A1 Preferred Share, the holders of Series Pre-A2 Preferred Share and the holders of
ordinary share.
Certain shares of the Company’s subsidiaries
Series A Preferred Shares of JET Global
JET Global is the holding company of the Group’s business in Mexico, Egypt, Brazil and Middle East.
In July 2021, JET Global entered into agreements with third-party investors to raise Series A financing, with
total consideration of USD283,620,000 by issuance of 283,620,000 JET Global Series A Preferred Shares.
These financing proceeds were divided into four parts with certain investment allocation ratio, and allocated
among the businesses of the four regions, namely Mexico, Egypt, Brazil, and Middle East (“Allocated
Investment”). Major operations in such regions substantially started in 2022.
– I-99 –
The rights, preferences, and privileges of the JET Global Series A Preferred Shares are as follows:
Dividend rights
The directors of JET Global may from time to time declare dividends (including interim dividends) and
distributions on JET Global’s shares. No dividend will be declared and paid on JET Global’s ordinary shares
unless and until a dividend is declared and paid on JET Global Series A Preferred Shares.
Voting rights
The holder of each share issued and outstanding, including JET Global’s ordinary share and JET Global Series
A Preferred Share, shall have one vote for each share held by such holder.
Liquidation preference
In the liquidation, dissolution or winding up of substantially all regional entities of a given region, prior and
in preference to any distribution of any of the available funds and assets to any other holders of shares, each
JET Global Series A Preferred Share holder shall be entitled to receive for each issued and outstanding JET
Global Series A Preferred Share, the amount equal to one hundred percent (100%) of the Allocated Investment,
plus (a) all interest that would accrue on the Allocated Investment during the period from the relevant issue
date to the date of receipt by the holder thereof of the full liquidation amount at a rate of 6% per annum, plus
(b) declared but unpaid dividends for such portion of preferred shares, respectively.
If the available funds and assets of liquidated regions are insufficient for the full payment to all JET Global
Series A Preferred Shareholders, then these available funds and assets shall be distributed among the JET
Global Series A Preferred Shareholders in proportion. After distributing or paying in full the liquidation
preference amount to JET Global Series A Preferred Shareholders, the remaining available funds, and assets,
if any, shall be distributed shall be distributed among the holders of the JET Global’s ordinary shares and
preferred shares on a pro rata basis, based on the number of ordinary shares then held by each holder on an
as-converted basis.
Conversion rights
Each preferred share may, at the option of the holder thereof, be converted at any time after the date of issuance
of such preferred shares into ordinary shares of JET Global, or shall automatically be converted into ordinary
shares of JET Global upon the closing of an [REDACTED] of JET Global.
The conversion ratio for the preferred shares to the ordinary shares is 1:1 if no adjustments to conversion price
have occurred. As at December 31, 2022, each convertible preferred share is convertible into one ordinary
share of JET Global.
Exit right
During two thirty-day periods following receipt of the annual regional financial statements of all
abovementioned regions after the fifth and sixth anniversary of the closing date, each JET Global Series A
Preferred Shareholders will have an exit right for the purpose of disposing of all (but not less than all) of their
JET Global Series A Preferred Shares.
The exit price will be subject to certain agreements between the group and the third-party investors.
Upon receiving the exit right exercise notice, the Company shall issue to the exiting JET Global Series A
Preferred Shareholders a number of shares of the Company substantially equal to the result of (i) the sum of
all regional exit prices for each unliquidated region, divided by (ii) the applicable share price of the Company.
If the Company is not publicly listed as at the exit date, the satisfactory information evidencing the Company’s
share price shall be provided to the exiting shareholder.
Derivatives – repurchase of certain preferred shares
On December 31, 2021, accompanying with issuance of Series C2 Preferred Shares, the Company entered into
agreements with certain existing shareholders to repurchase totally 48,607,928 of the Company’s ordinary and
preferred shares (Note 26 (v)). As at December 31, 2021, there are still 1,723,288 Series Pre-A1 Preferred
Shares, 1,252,460 Series Pre-A2 Preferred Shares, 6,229,713 Series A Preferred Shares, 518,425 Series B
Preferred Shares and 5,905,281 Series B+ Preferred Shares outstanding to be repurchased. The expected excess
of the repurchase price over the fair value of these convertible preferred shares was recognized as financial
liabilities at fair value through profit or loss.
– I-100 –
Accompanying the repurchase of the abovementioned convertible preferred shares in January and March 2022,
the relevant derivatives were derecognized concurrently. The fair value of relevant repurchased shares as at
transaction date approximated the fair value as at December 31, 2021.
The movements of financial liabilities at fair value through profit or loss are set out below:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Carrying amount at the beginning of the year – 1,812,915 10,487,306

Preferred Shares from equity (Note 25 (4)) 271,150 – –
Preferred Shares from equity (Note 25 (4)) 197,129 – –
Reclassification of Series A
Preferred Shares from equity (Note 25 (4)) 1,217,407 – –
Issuance of Series B Preferred Shares 127,229 – –
Issuance of Series B+ Preferred Shares – 1,822,381 –
Issuance of Series C1 Preferred Shares – 1,899,435 205,514
Issuance of Series C2 Preferred Shares – 382,877 442,944
Repurchase of Series Pre-A1
Preferred Shares (Note 26 (v)) – (18,900) (21,685)
Repurchase of Series Pre-A2
Repurchase of Series A
Repurchase of Series B Preferred Shares
(Note 26 (v)) – (6,125) (6,981)
Repurchase of Series B+ Preferred Shares
(Note 26 (v)) – (75,151) (85,330)
Issuance of Series A Preferred Shares of JET
Global – 283,620 –
Derivative – commitment to repurchase
preferred shares (Note 26 (v)) – 62,897 (62,897)
Changes in fair value – profit or loss – 4,383,532 (3,086,653)
Changes in fair value – other comprehensive loss – 24,874 (9,875)
Carrying amount at the end of the year 1,812,915 10,487,306 7,765,067
Determination of fair value
flow method to determine the underlying equity value of the Company and adopted option-pricing method and
equity allocation model to determine the fair value of the convertible preferred shares. Key assumptions are
set out as below:
Relationship of
As at December 31,
unobservable inputs
2020 2021 2022 to fair value
Discount rate 17% 15% 14% The higher the

discount rate, the
lower the fair value
Discount of lack of 9%-17% 9%-13% 9%-13% The higher the
marketability (“DLOM”) DLOM, the lower
the fair value
Expected volatility 41.29% 42.63% 49.61% The higher the
expected volatility,
the lower the fair
value
– I-101 –
Discount rate was estimated by weighted average cost of capital as at each valuation date. The DLOM was
estimated based on the option-pricing method. Under the option pricing method, the cost of put option, which
can hedge the price change before the privately held share can be sold, was considered as a basis to determine
the lack of marketability discount. Expected volatility was estimated based on annualised standard deviation
of daily stock price return of comparable companies for the period before respective valuation date and with
similar span as time to expiration. In addition to the assumptions adopted above, the Company’s projections
of future performance were also factored into the determination of the fair value of the preferred shares on each
valuation date.
The estimated carrying amount of relevant preferred shares as at December 31, 2022 would have been
USD788,022,000 lower/USD903,958,000 higher, respectively, should the discount rate used in discounted cash
flow analysis be higher/lower by 100 basis points from management’s estimates. (2021: USD882,235,000
lower/USD1,075,386,000 higher; 2020: USD115,717,000 lower/USD132,117,000 higher).
(b) Financial liabilities – ordinary share redemption liabilities
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Financial liabilities – ordinary

share redemption liabilities – 133,749 –
Financial liabilities – redemption liabilities of

shares of JNT KSA (Note 26 (vii)) – 25,458 30,583
On December 31, 2021, accompanying with issuance of Series C2 Preferred Shares, the Company entered into
agreements with certain existing shareholders to repurchase totally 48,607,928 their shares. As at December
31, 2021, there were 4,843,603 Class A Ordinary Shares and 3,694,268 Class B Ordinary Shares to be
repurchased, and the repurchase consideration was recognized as financial liabilities – ordinary share
redemption liabilities. Details are set out in Note 26 (v).
30. DEFERRED INCOME TAX
(i) Deferred income tax assets
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
The balance comprises temporary differences

attributable to:
Deductible tax losses 4,006 23,080 58,788
Lease liabilities 45,688 140,636 129,047
Provision and other temporary difference 876 4,104 6,643
Total deferred tax assets 50,570 167,820 194,478
Net-off with deferred tax liabilities (45,569) (157,972) (151,371)
Net deferred tax assets 5,001 9,848 43,107
– I-102 –
Deferred income taxes are calculated in full on temporary differences under the liability method using the tax
rates at which are expected to be applied at the time of reversal of the temporary differences. The analysis of
deferred income tax assets is as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Deferred income tax assets

– to be recovered after 12 months 25,442 45,467 39,617
– to be recovered within 12 months 25,128 122,353 154,861
50,570 167,820 194,478
The gross movements in deferred income tax assets before offsetting during the Track Record Period are as
follows:
Provision
and other
Deductible Lease temporary
tax losses liabilities difference Total
USD’000 USD’000 USD’000 USD’000
As at January 1, 2020 – 15,777 879 16,656

Credit/(debit) to consolidated
income statement 3,948 29,778 (125) 33,601
Exchange differences 58 133 122 313
As at December 31, 2020 and

January 1, 2021 4,006 45,688 876 50,570
Acquisition of
subsidiaries (Notes 36, 37, 38) 23,080 – – 23,080
income statement (4,075) 94,248 3,102 93,275
Exchange differences 69 700 126 895

January 1, 2022 23,080 140,636 4,104 167,820
income statement 37,378 (8,479) 1,580 30,479
Exchange differences (1,670) (3,110) 959 (3,821)
As at December 31, 2022 58,788 129,047 6,643 194,478
– I-103 –
Deferred income tax assets are recognized to the extent that the realisation of the related tax benefit through
the future taxable profits is probable. Deferred income tax assets have not been recognized in respect of the
following items:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Tax losses 733,619 2,336,651 3,130,790

Deductible temporary differences 4,985 257,223 357,289
738,604 2,593,874 3,488,079
As at December 31, 2020 and December 31, 2021, the unrecognized tax losses primarily arise from the
Company’s subsidiaries in the PRC and other South-East Asia countries. As at December 31, 2022, the
unrecognized tax losses primarily arise from the Company’s subsidiaries in the PRC and other South-East Asia
countries.
The expiry dates of the unrecognized tax losses are as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
2021 25 – –
2022 15 72 –
2023 18,611 18,611 18,611
2024 84,400 84,407 84,407
2025 620,089 760,014 444,786
2026 – 1,452,090 949,673
2027 4,450 396 1,552,579
2031 – 3,358 3,358
2032 – – 5,895
no expiry date 6,029 17,703 71,481
733,619 2,336,651 3,130,790
(ii) Deferred income tax liabilities
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
The balance comprises temporary differences

attributable to:
Right-of-use assets 45,569 143,189 130,805
Depreciation and other temporary difference 3,051 47,867 42,973
Total deferred tax liabilities 48,620 191,056 173,778
Net-off of deferred tax assets (45,569) (157,972) (151,371)
Net deferred tax liabilities 3,051 33,084 22,407
– I-104 –
Deferred income taxes are calculated in full on temporary differences under the liability method using the tax
rates at which are expected to be applied at the time of reversal of the temporary differences. The analysis of
deferred income tax liabilities is as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Deferred income tax liabilities

– to be settled after 12 months 23,557 66,482 57,947
– to be settled within 12 months 25,063 124,574 115,831
48,620 191,056 173,778
The gross movements in deferred income tax liabilities before offsetting during the Track Record Period are
as follows:
Depreciation
and other
Right-of-use temporary
assets difference Total
USD’000 USD’000 USD’000
As at January 1, 2020 15,768 – 15,768

Debit to consolidated income statement 29,642 3,067 32,709
Exchange differences 159 (16) 143
As at December 31, 2020 and January 1, 2021 45,569 3,051 48,620
Acquisition of a subsidiary (Note 36, Note 37,

Note 38) – 40,631 40,631
Debit to consolidated income statement 96,867 3,492 100,359
Exchange differences 753 693 1,446
As at December 31, 2021 and January 1, 2022 143,189 47,867 191,056
Credit to consolidated income statement (9,574) (5,367) (14,941)

Exchange differences (2,810) 473 (2,337)
As at December 31, 2022 130,805 42,973 173,778
– I-105 –
31. TRADE PAYABLES
The following is an aging analysis of the Group’s trade payables presented based on the invoice issuance date:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Within 3 months 212,619 505,960 434,660

3 to 6 months 9,028 19,200 26,512
6 to 9 months 1,253 28,286 14,360
9 to 12 months 1,891 22,903 5,103
Above 12 months 661 716 3,580
225,452 577,065 484,215
The carrying amounts of trade payables approximated their fair values as at the balance sheet dates.
32. ACCRUALS AND OTHER PAYABLES
Group
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Cash on delivery related payables 137,017 95,047 156,666

Salary and welfare payables 62,336 219,607 163,637
Deposits 25,928 192,734 175,229
Tax payables (excluding Corporate Income Tax) 24,284 48,830 40,999
Payables for purchase of long-term assets 5,644 110,710 88,587
Consideration payable for repurchase of ordinary
shares and preferred shares (Note 26 (v)) – 159,922 –
Consideration received pursuant
to 2022 Incentive Plan (Note 26 (viii)) – – 37,886
Others 49,153 88,502 113,374
304,362 915,352 776,378
Company
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Consideration of repurchase of ordinary shares

and preferred shares (Note 26 (v)) – 159,922 –
Others – 1,979 6,127
– 161,901 6,127
– I-106 –
33. ADVANCES FROM CUSTOMERS
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Advances from customers for express delivery

services 137,224 291,362 209,925
Advances from customers for express delivery services were mainly the advance payments from customers
which can be refunded as per request by customers.
As at December 31, 2020, 2021, and 2022, the outstanding express delivery service orders would generally be
completed within ten days, while other types of orders generally within one month.
All contracts are for periods of one year or less. As permitted under IFRS 15, the transaction price allocated
to these unsatisfied contracts is not disclosed.
34. CASH FLOW INFORMATION
(a) Cash generated used in operations
The reconciliation from (loss)/profit for the year to cash used in operations is as follows:

2020 2021 2022
USD’000 USD’000 USD’000
(Loss)/profit for the year (664,163) (6,192,258) 1,572,567

Adjustments for:
Income tax expense 45,530 73,126 10,763
Depreciation of property, plant and equipment 39,270 104,444 227,910
Depreciation of right-of-use assets 56,000 113,878 257,176
Depreciation of investment properties 1,228 266 154
Amortization of intangible assets 804 1,901 20,707
Impairment losses on financial assets 9,488 41,320 37,219
(Reversal)/accrual of inventory provisions (4) 3 103
Impairment losses on long-term assets – 250,292 219,080
Impairment losses on goodwill – – 117,502
Finance income (1,965) (9,476) (22,002)
Finance costs 13,831 99,077 99,499
Other income (17,056) (82,542) (98,149)
Other losses – net (258) (560) (1,263)
Share-based compensation 188,302 619,012 346,559
Net loss on disposal of property, plant and
equipment 37 1,424 1,873
Fair value change of financial assets and
liabilities at fair value through profit or
loss – 4,383,532 (3,050,694)
Share of results of associates 323 (1,208) 302
Foreign exchange (gains)/losses – net (29,362) (19,887) 17,338
Movements in working capital
(Increase)/decrease in inventories (9,867) (8,622) 127
Increase in trade receivables (128,078) (4,322) (191,126)
Increase in prepayments, other receivables,
and other assets (203,926) (105,520) (42,182)
– I-107 –

2020 2021 2022
USD’000 USD’000 USD’000
Increase/(decrease) in trade payables 189,454 (305,366) (84,661)

Increase in accruals and other payables 324,141 128,302 118,202
Increase/(decrease) in advances from customers 68,792 62,774 (73,643)
(Placement)/return of restricted cash – (49,950) 45,830
Cash used in operations (117,479) (900,360) (470,809)
(b) Net debt reconciliation
Net debt
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Cash and cash equivalents 600,425 2,102,448 1,504,048

Restricted cash 928 125,970 79,725
profit or loss 71,324 41,581 497,490
Borrowings (444,060) (89,027) (1,098,377)
Lease liabilities (175,017) (598,722) (492,666)
profit or loss (1,812,915) (10,487,306) (7,765,067)
Financial liabilities – redemption liabilities of
shares of JNT KSA – (25,458) (30,583)
redemption liabilities – (133,749) –
Net debt (1,759,315) (9,064,263) (7,305,430)
Cash and financial assets at fair value

through profit or loss 672,677 2,269,999 2,081,263
Gross debt – fixed interest rates (2,431,992) (11,334,262) (9,386,693)
Net debt (1,759,315) (9,064,263) (7,305,430)
– I-108 –
This section sets out the movements in net debt for each of the years presented.
Liabilities from financing activities Other assets

Financial
Financial liabilities at
liabilities – FVTPL –
redemption ordinary
APPENDIX I
Financial liabilities of share Cash and Financial

Lease liabilities at shares of redemption cash Restricted assets at
Borrowings liabilities FVTPL JNT KSA liabilities equivalents cash FVTPL Total
As at January 1, 2020 (163,881) (61,063) – – – 97,173 586 6,752 (120,433)

Cash flows (260,090) 67,412 (100,000) – – 495,380 342 63,909 266,953
New leases entered – (169,150) – – – – – – (169,150)
Interest expenses (7,824) (6,007) – – – – – – (13,831)
Share-based compensation expense – – (27,229) – – – – – (27,229)
Transfer from equity (Note 25, 29) – – (1,685,686) – – – – – (1,685,686)
Foreign exchange adjustments (12,265) (6,209) – – – 7,872 – 663 (9,939)

January 1, 2021 (444,060) (175,017) (1,812,915) – – 600,425 928 71,324 (1,759,315)
– I-109 –
Cash flows 403,056 115,563 (3,966,126) (20,000) – 1,501,327 49,962 (30,954) (1,947,172)
Interest expenses (3,615) (13,860) – (1,478) – – – – (18,953)
Repurchase of preferred shares (Note 29) – – 185,225 – – – – – 185,225
Share-based compensation expense – – (9,310) (3,980) (43,669) – – – (56,959)
Outstanding proceeds of Series C2
Preferred Shares – – (159,922) – – – – – (159,922)
Non-cash payment for Series C2
Outstanding proceeds of Series C1
Derivative – commitment to repurchase

preferred shares – – (62,897) – – – – – (62,897)
Fair Value Change – – (4,383,532) – – – – – (4,383,532)
Fair Value Change – other
comprehensive loss – – (24,874) – – – – – (24,874)
Liabilities from financing activities Other assets
Financial
Financial liabilities at
liabilities – FVTPL –
redemption ordinary
Financial liabilities of share Cash and Financial
Lease liabilities at shares of redemption cash Restricted assets at
APPENDIX I
Borrowings liabilities FVTPL JNT KSA liabilities equivalents cash FVTPL Total
Recognition of ordinary share redemption

liabilities – – – – (90,080) – – – (90,080)
Acquisition of subsidiaries (41,067) (336,714) – – – – 75,080 488 (302,213)
Foreign exchange adjustments (3,341) 18,662 – – – 696 – 723 16,740

January 1, 2022 (89,027) (598,722) (10,487,306) (25,458) (133,749) 2,102,448 125,970 41,581 (9,064,263)
Cash flows (954,715) 299,986 (219,024) – – (498,246) (46,245) 490,979 (927,265)

Interest expenses (57,056) (37,318) – (5,125) – – – – (99,499)
Lease modification – 108,461 – – – – – – 108,461
– I-110 –
Settlement of receivable of Series C2
Preferred Share consideration – – 30,000 – – – – – 30,000
Repurchase of preferred shares (Note 29) – – 211,272 – – – – – 211,272
Share-based compensation expense – – (16,490) – – – – – (16,490)
Non-cash payment for Series C2
Fulfilment of commitment to repurchase
preferred shares – – 62,897 – – – – – 62,897
Fair Value Change – – 3,086,648 – – – – – 3,086,648
Fair Value Change – other
comprehensive loss – – 9,880 – – – – (35,970) (26,090)
Repurchase of ordinary shares (Note 29) – – – – 133,749 – – – 133,749
Acquisition of subsidiaries – (8,981) – – – – – – (8,981)

Foreign exchange adjustments 2,421 5,501 – – – (100,154) – 900 (91,332)
As at December 31, 2022 (1,098,377) (492,666) (7,765,067) (30,583) – 1,504,048 79,725 497,490 (7,305,430)
35. TRANSACTIONS WITH NON-CONTROLLING INTERESTS
The material transactions with non-controlling interests during the Track Record Period are as follows:
(a) Acquisition of non-controlling interests of Chinese subsidiaries
On April 30, 2021, the Group acquired additional 34% of the 49% non-controlling equity interests of 36 the
PRC subsidiaries with aggregated cash consideration of USD837,000, and the issuance of 32,508,856 Class A
Ordinary Shares of the Company with fair value of USD4.3065 per share.
Immediately prior to the purchase, the carrying amount of the 49% non-controlling interests in these the PRC
subsidiaries in aggregate was negative USD223,081,000. The Group recognized an increase in non-controlling
interests by USD154,791,000 and a decrease in equity attributable to owners of the Company by
USD295,627,000.
(b) Acquisition of non-controlling interests of the Malaysian subsidiary
On April 30, 2021, the Group acquired an additional 29.8% of the equity interests of the Group’s main
operating entity in Malaysia with the issuance of 25,669,206 Class A Ordinary Shares of the Company with
fair value of USD4.3065 per share.
Immediately prior to the purchase, the carrying amount of the 29.8% non-controlling interests in the Malaysian
subsidiary was USD5,444,000. The Group recognized a decrease in non-controlling interests by USD5,444,000
and a decrease in equity attributable to owners of the Company by USD105,101,000.
(c) Acquisition of non-controlling interests of the Vietnamese subsidiary
On April 30, 2021, through updating certain contractual arrangements, the Group indirectly obtained an
additional 38.0% of the equity interests of the Group’s main operating entity in Vietnam, with the issuance of
18,778,451 Class A Ordinary Shares of the Company with fair value of USD4.3065 per share.
Immediately prior to the purchase, the carrying amount of the 38.0% non-controlling interest in the Vietnamese
subsidiary was negative USD27,772,000. The Group recognized an increase in non-controlling interests by
USD27,772,000 and a decrease in equity attributable to owners of the Company by USD108,642,000.
(d) Acquisition of non-controlling interests of the Cambodia subsidiary
On April 30, 2021, the Group acquired an additional 28.0% of the equity interests of the Group’s main
operating entity in Cambodia with the issuance of 259,202 Class A Ordinary Shares of the Company with fair
value of USD4.3065 per share.
Immediately prior to the purchase, the carrying amount of the 28.0% non-controlling interest in the Cambodia
subsidiary was negative USD810,000. The Group recognized an increase in non-controlling interests by
USD810,000 and a decrease in equity attributable to owners of the Company by USD1,925,000.
The Class A Ordinary Shares issued in the abovementioned transactions were all registered in 2021.
The effect of the transactions with non-controlling interests on the equity attributable to the owners of the
Company during the Track Record Period are summarised follows:
2020 Total
USD’000
Carrying amount of non-controlling interests debited/(credited) 914
Consideration received from non-controlling interests in cash – net 719
Total consideration 719
Excess of consideration received recognized in the transactions with non-controlling

interests reserve within equity 1,633
– I-111 –
Acquisition Acquisition Acquisition Acquisition

of NCI of of NCI of of NCI of of NCI of Other
the PRC Malaysia Vietnam Cambodia immaterial
2021 subsidiaries subsidiary subsidiary subsidiary transactions Total
Carrying amount of
non-controlling
interests
debited/(credited) (154,791) 5,444 (27,772) (810) 5,198 (172,731)
Consideration paid to
non-controlling
interests in cash (837) – – – (8,564) (9,401)
Consideration paid to
non-controlling
interests in ordinary
shares (139,999) (110,545) (80,870) (1,115) – (332,529)
Total consideration (140,836) (110,545) (80,870) (1,115) (8,564) (341,930)
Excess of
consideration paid
recognized in the
transactions with
non-controlling
interests reserve
within equity (295,627) (105,101) (108,642) (1,925) (3,366) (514,661)
equity allocation model to determine the fair value of the issued ordinary shares. Key assumptions are set out
as below:
Discount rate 17%

DLOM 15%
Expected volatility 41.83%
Equity interests
transferred to
management team
of the cross-
border business
2022 (Note 26 (iii))
USD’000
Carrying amount of non-controlling interests credited (4,832)
Consideration received from non-controlling interests in cash 6,274

Share-based compensation expenses 4,583
Increase in other reserve 6,025
– I-112 –
36. BUSINESS COMBINATION OF OPERATING ENTITIES OF THAILAND REGIONAL SPONSORS
(a) Summary of acquisition
According to relevant agreements entered in 2021, the Company issued 11,210,471 Class A Ordinary Shares
for the Group to acquire 70% of the equity interests of 12 operating entities and 86.5% of one operating entity
of Thai regional sponsors (the “Thai Acquirees”) and to obtain control of each Thai Acquiree. The transactions
were completed on June 30, 2021.
Details of the companies acquired, and the purchase consideration are as follows:
Fair value of
Transaction Ordinary ordinary
Name of the acquirees Date shares issued shares issued
USD’000
Thai Acquiree 1 June 30, 2021 907,206 4,135

Subtotal 11,210,471 51,091
Settlement of pre-existing net payables

to the Group 86,578
Total consideration 137,669
The pre-existing net payables of the acquirees to the Group is USD86,578,000 as at June 30, 2021. No gain
or loss is recognised on the settlement, because the net payables were effectively settled at the recorded
amount.
The fair value of the ordinary shares of the Company issued as part of the consideration paid for the Thai
Acquirees was USD4.5574 per share.
equity allocation model to determine the fair value of the issued ordinary shares of the Company. Key
assumptions are set out as below:
Discount rate 17%

DLOM 14%
– I-113 –
The assets and liabilities recognized as a result of the acquisition, excluding the pre-existing net payables of
the acquirees to the Group are as follows:
Fair value
USD’000
Cash and cash equivalents 5,930

Inventories 1,202
Trade receivables 10,851
Prepayments, other receivables, and other assets 4,309
Right-of-use assets 5,407
Property, plant and equipment 2,406
Intangible assets: customer relationship 2,192
Intangible assets: others 55
Other non-current assets 3,999
Trade Payables and other payables (3,293)
Lease liabilities (5,407)
Current income tax liabilities (1,074)
Borrowings (4,946)
Net identifiable assets acquired 21,631
Add: non-controlling deficits 17,718
Add: goodwill 98,320
Net assets acquired 137,669
The goodwill is attributable to the workforce and the expected future high profitability of the acquired
business. It will not be deductible for tax purposes.
(i) Acquired receivables
The fair value of acquired trade receivables is USD10,851,000. The gross contractual amount for trade
receivables due is USD12,075,000, with a loss allowance of USD1,224,000 recognised on acquisition.
(ii) Accounting policy of non-controlling interests
The Group recognises non-controlling interests in an acquired entity either at fair value or at the
non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. This
decision is made on an acquisition-by-acquisition basis. For the non-controlling interests in the Thai
Acquirees, the Group elected to recognise the non-controlling interests at its proportionate share of the
acquired net identifiable assets.
(iii) Revenue and profit contribution
The acquired business contributed revenue of USD4,795,000, gross loss of USD26,357,000, loss before
tax of USD46,017,000 and net loss of USD46,017,000 to the Group for the period from June 30, 2021
to December 31, 2021.
– I-114 –
If the acquisition had occurred on January 1, 2021, consolidated [REDACTED] revenue, gross loss, loss
before tax and net loss for the year ended December 31, 2021 would have been USD4,901,284,000,
USD547,870,000, USD6,129,906,000, and USD6,203,033,000 respectively. These amounts have been
calculated using the subsidiaries’ results and adjusting them for:
• differences in the accounting policies between the Group and the subsidiaries, and
• the additional depreciation and amortisation that would have been charged assuming the fair
value adjustments to property, plant and equipment and intangible assets had applied from
January 1, 2021, together with the consequential tax effects.
(b) Purchase consideration – cash inflow
USD’000
Outflow of cash to acquire subsidiary, net of cash acquired

Cash consideration –
Add: Balances acquired – cash 5,930
Net inflow of cash – investing activities 5,930
37. BUSINESS COMBINATION OF OPERATING ENTITIES OF INDONESIAN REGIONAL SPONSORS
According to relevant agreements entered in 2021, the Group had contractual agreements with an operating
entity and its relevant shareholders (terminated in 2022, as the Group obtained relevant equity interests), and
made capital injection totalling USD19,342,000 to 24 operating entities of certain Indonesian regional
sponsors (the “Indonesian Acquirees”), and the Company issued 55,273,897 Class A Ordinary Shares to such
Indonesian regional sponsors for the Group to acquire 70% of the equity interests and to obtain control of each
Indonesian Acquiree. The transactions were completed on August 31, 2021.
Details of the companies acquired, and the purchase considerations are as follows:
Number of Fair value of

Name of the Acquisition ordinary shares ordinary Cash Total
Indonesian Acquirees date issued shares issued consideration consideration
USD’000 USD’000 USD’000
Indonesian Acquiree 1 August 31, 2021 797,261 4,059 81 4,140

Indonesian Acquiree 2 August 31, 2021 1,080,007 5,498 161 5,659
Indonesian Acquiree 14 August 31, 2021 864,006 4,399 1,693 6,092
Indonesian Acquiree 15 August 31, 2021 6,223,865 31,685 3,224 34,909
– I-115 –
Number of Fair value of

Name of the Acquisition ordinary shares ordinary Cash Total
Indonesian Acquirees date issued shares issued consideration consideration
USD’000 USD’000 USD’000

Subtotal 55,273,897 281,395 19,342 300,737

Settlement of pre-
existing net payables 11,363
Total purchase
consideration 312,100
The pre-existing net payables of the acquirees to the Group is USD11,363,000 as at August 31, 2021. No gain
or loss is recognised on the settlement, because the net payables were effectively settled at the recorded
amount.
The fair value of the ordinary shares of the Company issued as part of the consideration paid for the Indonesian
Acquirees was USD5.0909 per share.
equity allocation model to determine the fair value of the issued ordinary shares. Key assumptions are set out
as below:
Discount rate 16%

DLOM 14%
The assets and liabilities recognized as a result of the acquisition, excluding the pre-existing net payables of
the acquirees to the Group are as follows:
Fair value
USD’000

Inventories 2,752
Trade Receivables 36,492
Investment properties 468
Intangible assets: customer relationship 80,370
Intangible assets: others 134
Other non-current assets 171
Trade Payables (22,771)
Advances from customers (227)
Accrued expenses and other payables (119,026)
– I-116 –
Fair value
USD’000
Current income tax liabilities (18,729)

Borrowings (3,851)
Employee benefit obligations (349)
Long-term payables (867)
Deferred tax liability (17,477)
Net identifiable assets acquired 140,264
Less: non-controlling interests (43,651)

The goodwill is attributable to the workforce and the high profitability of the acquired business. It will not be
deductible for tax purposes.
receivables due is USD36,966,000, with a loss allowance of USD474,000 recognised on acquisition.
(ii) Accounting policy for non-controlling interests
The Group recognises non-controlling interests in an acquired entity either at fair value or at the
non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. This
decision is made on an acquisition-by-acquisition basis. For the non-controlling interests in the
Indonesian Acquirees, the Group elected to recognise the non-controlling interests at its proportionate
share of the acquired net identifiable assets.
(iii) Revenue and profit contribution
The acquired business contributed revenue of USD12,167,000, gross profit of USD81,821,000, profit
before tax of USD69,352,000 and net profit of USD52,104,000 to the Group for the period from August
31, 2021 to December 31, 2021.
USD427,372,000, USD6,035,388,000 and USD6,109,451,000 respectively. These amounts have been
calculated using the subsidiaries’ results and adjusting them for:
– I-117 –
(b) Purchase consideration – cash inflow
USD’000

Cash consideration (19,343)
Add: Balances acquired – cash 109,193
Net inflow of cash – investing activities 89,850
38. BUSINESS COMBINATION OF BEST INC.’S EXPRESS BUSINESS IN CHINA
On December 8, 2021, as to further enhance the Group’s scale and network in China, the Group acquired Best
Inc.’s express business in China with cash consideration of USD715,511,000, through obtaining 100% of the
equity interests of the main operating entity of such business and other relevant assets.
Details of the purchase consideration, the net assets acquired, and goodwill are as follows:
The assets and liabilities recognized as a result of the acquisition are as follows:
Fair value
USD’000

Restricted cash 75,080
Financial assets at fair value through profit or loss 147
Inventories 1,088
Trade receivables 109,285
Intangible assets: customer relationships 88,258
Other intangible assets 549
Other non-current assets 9,975
Trade payables and other payables (806,019)
Advances from customers (95,700)
Borrowings (34,134)
Net identifiable liabilities acquired 85,053
Less: non-controlling interests –

The goodwill is attributable to the workforce and the expected future high profitability of the acquired
business. It will not be deductible for tax purposes.
– I-118 –
receivables due is USD147,480,000, with a loss allowance of USD38,195,000 recognised on acquisition.
(ii) Revenue and profit contribution
The acquired business contributed revenue of USD196,958,000, gross loss of USD10,583,000, loss
before tax of USD39,348,000 and net loss of USD39,348,000 to the Group for the period from
December 8, 2021 to December 31, 2021.
USD732,207,000, USD6,422,307,000, and USD6,495,434,000 respectively.
In addition, if the abovementioned acquisitions of operating entities of Thailand regional sponsors (Note
36), operating entities of Indonesian regional sponsors (Note 37) and Best Inc.’s express business in
China (Note 38) had occurred on January 1, 2021, consolidated [REDACTED] revenue, gross loss, loss
USD617,961,000, USD6,375,067,000, and USD6,449,131,000 respectively.
These amounts have been calculated using the subsidiaries’ results and adjusting them for:
(b) Purchase consideration – cash outflow
USD’000

Cash consideration 715,511
Less: Balances acquired
Cash (11,042)
Net outflow of cash – investing activities 704,469
39. RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party
or exercise significant influence over the other party in making financial and operational decisions. Parties are
also considered to be related if they are subject to common control.
Members of key management and their close family members of the Group are also considered as related
parties.
The following significant transactions were carried out between the Group and its related parties during the
periods presented. In the opinion of the directors of the Company, the related party transactions were carried
out in the normal course of business and at terms negotiated between the Group and the respective related
parties.
– I-119 –
(a) Names and relationships with related parties
The following companies are significant related parties of the Group that had transactions and/or balances with
the Group during the Track Record Period.
Name of related party Relationship with the Group
Galaxy Brilliant Inc. Controlled by a member

of key management personnel
Constant Talent Limited Controlled by a member
Jet Commerce Group Controlled by a member
Jie Business Sdn Bhd Controlled by a member
Windfall T&L SPC Under significant influence of a member
J&T Courier Service Sdn Bhd Under significant influence of a member
Honour Victory Holdings Limited Under significant influence of a member
Jumbo Link Holdings Limited Under significant influence of a member
Shanghai Huisen Zhilian Express Co., Ltd Under significant influence of a member
Huisen Global Limited Under significant influence
of a member of key management personnel
BNT Express Co., Ltd Controlled by a member of key management personnel
(before acquisition) (Note 36)
Guangdong OPPO Mobile Controlled by a member of key management personnel
Telecommunications Corp.,Ltd. (before the end of appointment of the member
of key management personnel)
PT. Semut Merah Squad Controlled by a member of key management personnel
(before acquisition) (Note 37)
Suzhou BBK Investment Development Controlled by a member of key management personnel
Co., Ltd.
(b) Transactions with related parties
Save as disclosed in other notes of this report, related party transactions of the Group are listed as follows:
(i) Borrowings received from related parties

2020 2021 2022
USD’000 USD’000 USD’000
Guangdong OPPO Mobile

Telecommunications Corp., Ltd. 118,509 – –
Honour Victory Holdings Limited 6,099 3,236 –
Others – 4,756 –
124,608 7,992 –
– I-120 –
(ii) Repayment of borrowings from related parties

2020 2021 2022
USD’000 USD’000 USD’000

Telecommunications Corp., Ltd. – 124,025 –
Honour Victory Holdings Limited – 23,422 5,651
Jumbo Link Holdings Limited – 9,775 4,659
Suzhou BBK Investment Development
Co., Ltd. 7,407 – –
Others 1,057 2,444 3,843
8,464 159,666 14,153
(iii) Loans to related parties

2020 2021 2022
USD’000 USD’000 USD’000
Shanghai Huisen Zhilian Express Co., Ltd 52,292 80,430 –

Huisen Global Limited – 24,200 320,000
Galaxy Brilliant Inc. – 21,600 –
Jet Commerce Group 450 – –
Others 4,857 1,928 –
57,599 128,158 320,000
(iv) Collection of loans to related parties

2020 2021 2022
USD’000 USD’000 USD’000
Huisen Global Limited – – 344,200

Shanghai Huisen Zhilian Express Co., Ltd – – 135,424
Galaxy Brilliant Inc. – 6,200 15,400
Others 1,004 411 8,777
1,004 6,611 503,801
– I-121 –
(v) Interest expenses on borrowings from related parties

2020 2021 2022
USD’000 USD’000 USD’000

Telecommunications Corp., Ltd. 4,218 178 –
Others 625 464 17
4,843 642 17
(vi) Interest income on loans to related parties

2020 2021 2022
USD’000 USD’000 USD’000
Shanghai Huisen Zhilian Express Co., Ltd 1,198 4,009 8,552

Others 107 403 1,623
1,305 4,412 10,175
(vii) Rendering of services

2020 2021 2022
USD’000 USD’000 USD’000
Jie Business Sdn Bhd 967 2,630 2,450

Jet Commerce Group – – 1,655
PT. Semut Merah Squad 19,361 3,466 –
BNT Express Co., Ltd 3,655 2,325 –
Others 2,585 5,031 2,820
26,568 13,452 6,925
(viii) Receiving of services

2020 2021 2022
USD’000 USD’000 USD’000
J&T Courier Service Sdn Bhd – – 4,790

PT. Semut Merah Squad 12,379 57,899 –
BNT Express Co., Ltd 10,344 3,723 –
Others 2,127 2,402 188
24,850 64,024 4,978
– I-122 –
(ix) Other transactions
During 2021, a series of transactions were completed by the Group (Note 35, Note 36, Note 37), and
part of the transaction consideration was paid to a member of key management personnel, who is also
a regional sponsor, as follows:
USD’000
Acquisition of Minority interests in Subsidiaries in China and South-East Asia 16,222

Business acquisition of entities of the regional sponsor 19,255
35,477
Through January to March 2022, the Group invested around USD60,000,000 in Windfall T&L SPC, a
private equity fund focusing on investing in industries such as logistics and its upstream and
downstream industry chains, under significant influence of a member of key management personnel.
The contractual term of investment is between 3-5 years. As the Group does not have significant
influence over such fund, the Group accounted such investment as financial assets at fair value through
profit or loss. (Note 24)
(c) Balances with related parties
(i) Borrowings
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Honour Victory Holdings Limited 24,654 5,694 –

Jumbo Link Holdings Limited 9,947 4,933 –
Constant Talent Limited 3,755 3,843 –
Telecommunications Corp., Ltd. 126,777 N/A N/A
Others 2,487 – –
167,620 14,470 –
(ii) Loan receivables
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Shanghai Huisen Zhilian Express Co., Ltd 57,166 145,688 –

Jet Commerce Group 8,033 7,967 –
Huisen Global Limited – 24,200 –
Galaxy Brilliant Inc. – 15,400 –
BNT Express Co., Ltd 3,854 – –
Others 1,567 408 –
Subtotal 70,620 193,663 –

Less: allowance for credit losses (1,116) (2,974) –
69,504 190,689 –
– I-123 –
(iii) Bond receivables
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Huisen Global Limited (Note 24) – – 428,678
(iv) Receivables from related parties
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Trade receivables
PT. Semut Merah Squad 2,326 – –
Others 217 897 589
Subtotal 4,589 897 589

Less: allowance for credit losses (161) (41) (20)
4,428 856 569
Other receivables
Shanghai Huisen Zhilian Express
Co., Ltd 1,533 – –
Others 663 316 319
Subtotal 6,220 316 319

Less: allowance for credit losses (75) (4) (5)
6,145 312 314
(v) Payables to related parties
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Trade payables
Others 520 21 115
1,844 21 115
Other payables
Honour Victory Holdings Limited – – 6,605
J&T Courier Service Sdn Bhd – 2,340 2,461
Others 612 500 7
612 2,840 9,073
– I-124 –
(d) Key management compensation
Key management includes directors (executive and non-executive) and the senior management of the Group.
The compensation paid or payable to key management for employee services is shown below:

2020 2021 2022
USD’000 USD’000 USD’000
Salaries, bonuses and fees 2,721 20,031 11,040

Pension cost – defined contribution plans 8 51 45
Share-based compensation 161,073 114,085 223,773
163,802 134,167 234,858
(e) Terms and conditions
Terms for loans to related parties were negotiated on a case-by-case basis. During the Track Record Period,
generally the Group entered into loan agreements with related parties with terms substantially ranging from
8 months to 3 years, with annual interest rates ranging from 0.4% to 7%.
The loans from the related parties generally mature between 1 to 3 years are repayable in a lump sum at
maturity. The annual interest rate on these loans is generally fixed at a rate below 5%.
Services were rendered to or received from the related parties during the Track Record Period based on normal
commercial terms, conditions and market rates that would be available to third parties and further negotiations.
40. COMMITMENT
(a) Capital commitments
Capital expenditure contracted for as at December 31, 2020, 2021 and 2022 but not yet incurred is as follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Right-of-use asset – Land in the PRC – 22,052 11,659
(b) Short-term lease commitments
The Group leases certain warehouses and vehicles under non-cancellable short-term lease agreements. The
lease terms are generally within one year.
The Group’s future aggregate minimum lease payments under such non-cancellable short-term leases are as
follows:
As at December 31,
2020 2021 2022
USD’000 USD’000 USD’000
Within one year 9,675 22,575 41,733
– I-125 –
41. BENEFITS AND INTERESTS OF DIRECTORS
(a) Directors’ emoluments
The remuneration paid or payable to the directors of the Company (including emoluments for services as
employee/directors of the group entities prior to becoming the directors of the Company) during the years
ended December 31, 2020, 2021, and 2022 was as follows.

Pension cost
– defined
Salaries and contribution Share-based
Name Fees bonuses plans compensation Total
Executive Director:
Mr. Jet Jie Li (i) – 1,642 5 161,073 162,720
Non-executive Directors:
Ms. Alice Yu-fen Cheng (ii) 70 – – – 70
Mr. Yuan Zhang (ii) – – – – –
Ms. Qinghua Liao (ii) – – – – –
Other directors (iv) – 113 – – 113
70 1,755 5 161,073 162,903

Pension cost
– defined
Executive Director:
Mr. Jet Jie Li (i) – 11,932 23 80,223 92,178
Ms. Alice Yu-fen Cheng (ii) 120 – – – 120
Other directors (iv) – 762 12 3,988 4,762
120 12,694 35 84,211 97,060
– I-126 –

Pension cost
– defined
Executive Director:
Mr. Jet Jie Li (i) – 4,349 11 223,773 228,133
Ms. Alice Yu-fen Cheng (ii) – – – – –
Other directors (iv) – 656 10 – 666
– 5,005 21 223,773 228,799
Notes:
(i) Mr. Jet Jie Li was appointed as executive director, Chief Executive Officer of the Company and
chairman of the Board of the Company on May 15, 2020.
(ii) Ms. Alice Yu-fen Cheng and Mr. Yuan Zhang were appointed as non-executive directors of the Company
on May 15, 2020. Ms. Qinghua Liao was appointed as non-executive director of the Company on March
3, 2022.
(iii) The appointment of Mr. Erh Fei Liu, Mr. Peng Shen and Mr. Charles Zhaoxuan Yang as our independent
non-executive Directors will take effect on the [REDACTED]. During the years ended December 31,
2020, 2021, and 2022, the independent non-executive directors have not yet been appointed and did not
receive any directors’ remuneration in the capacity of independent non-executive directors of the
Company.
(iv) Ms. Yang Lulu, Mr. Zhu He, Mr. Qiu Yanjie, Mr. Chen Mingyong, Mr. Li Leheng and Mr. Chen Zhiyi
were appointed as directors on October 24, 2019, May 15, 2020, May 15, 2020, May 15, 2020, May 15,
2020 and February 26, 2021 and resigned on May 15, 2020, March 22, 2021, March 22, 2021, September
1, 2021, September 1, 2021 and March 3, 2022, respectively.
(b) Directors’ retirement and termination benefits
No retirement benefits were paid to or receivable by any directors in respect of their other services in
connection with the management of the affairs of the Company or its subsidiaries’ undertaking during the Track
Record Period.
No payment was made to the directors as compensation for early termination of appointment during the Track
Record Period.
(c) Consideration provided to third parties for making available directors’ services
No consideration was provided to third parties for making available directors’ services at the end of each
reporting period or at any time during the Track Record Period.
– I-127 –
(d) Information about loans, quasi-loans, and other dealings in favour of directors, their controlled bodies,
and connected entities
Save as disclosed in the Note 39, there were no loans, quasi-loans, and other dealings in favour of directors,
their controlled bodies corporate and connected entities at the end of each reporting period or at any time
(e) Directors’ material interests in transactions, arrangements, or contracts
Save as disclosed in the Note 39, no significant transactions, arrangements, and contracts in relation to the
Group’s business to which the Company was a party and in which a director of the Company had a material
interest, whether directly or indirectly, subsisted at the end of each reporting period or at any time during the
Track Record Period.
42. FIVE HIGHEST PAID EMPLOYEES
The five highest paid employees include one director whose remuneration is set out in Note 41 for each of the
years ended December 31, 2020, 2021, and 2022. All of these individuals including that director have not
received any emoluments from the Group as an inducement to join or upon joining the Group or as
compensation for the loss of office during the Track Record Period. None of the directors, the CEO and
employees waived or agreed to waive any emoluments during the Track Record Period. The emoluments
payable to the remaining four individuals, who are neither a director nor chief executive of the Company,
during the Track Record Period, are as follows:
2020 2021 2022

USD’000 USD’000 USD’000
Salaries, bonuses and fees 11,817 14,127 7,958

Pension cost – defined contribution plans 32 38 43
Welfare, medical and other benefits – 28 32
Share-based compensation – 42,919 15,748
11,849 57,112 23,781
The number of the highest paid employees who are not the directors of the Company whose remuneration fell
within the following bands is as follows:
2020 2021 2022
Emolument bands (in HK dollar)

HK$17,000,001 to HK$17,500,000 – – 1
HK$18,500,001 to HK$19,000,000 1 – –
HK$20,000,001 to HK$20,500,000 1 – –
HK$21,500,001 to HK$22,000,000 – – 1
HK$22,500,001 to HK$23,000,000 1 – –
HK$30,500,001 to HK$31,000,000 1 – –
HK$59,500,001 to HK$60,000,000 – 1 –
HK$63,500,001 to HK$64,000,000 – 1 –
HK$69,500,001 to HK$70,000,000 – – 1
HK$76,000,001 to HK$76,500,000 – – 1
HK$129,000,001 to HK$129,500,000 – 1 –
HK$191,000,001 to HK$191,500,000 – 1 –
4 4 4
– I-128 –
43. DIVIDENDS
No dividend has been paid or declared by the Company since its incorporation until July 2021.
In August 2021, the Company declared a cash dividend of USD12.0 cents per share, which was accounted for
as a distribution of the share premium account of the Company with the amount of USD72,244,000 to holders
of ordinary shares of the Company as at August 31, 2021, and interest expenses of USD81,602,000 (Note 10)
payable to holders of preferred shares of the Company as at August 31, 2021. Such dividend was fully settled
by cash in November 2021. No dividend has been paid or declared by the Company since then till December
31, 2022.
44. CONTINGENT LIABILITIES
There are no significant contingent liabilities as at December 31, 2020, 2021, and 2022.
45. SUBSEQUENT EVENTS
Additional issuance of convertible preferred shares
In May 2023, the Company entered into agreements with a third-party investor to raise Series D financing, with
the total amount of USD200,000,000.
In the same month, 118,745,672 Series C1 Preferred Shares and 43,082,204 Series C2 Preferred Shares were
issued to the existing Series C1 and C2 Preferred Shareholders respectively at nil consideration, representing
both the exercise of relevant anti-dilution arrangements included in the Company’s shareholder agreement, and
an additional compensation to such shareholders as per relevant agreements entered into in May 2023.
The abovementioned issuance of Series C1 and Series C2 Preferred Shares as an additional compensation is
to be accounted for as a share-based compensation to relevant shareholders and relevant fair value of such
shares is to be included in the Group’s selling, general and administrative expenses in year 2023.
The valuation process of the abovementioned newly issued Series C1 Preferred Shares and Series C2 Preferred
Shares is still on-going.
III SUBSEQUENT FINANCIAL STATEMENTS
No audited financial statements have been prepared by the Company or any of the
companies now comprising the Group in respect of any period subsequent to December
31, 2022 and up to the date of this report.
– I-129 –
APPENDIX II [REDACTED]
[REDACTED]
– II-1 –
[REDACTED]
– II-2 –
[REDACTED]
– II-3 –
[REDACTED]
– II-4 –
[REDACTED]
– II-5 –
APPENDIX III REGULATORY OVERVIEW
LAWS AND REGULATIONS IN RELATION TO OUR BUSINESS IN INDONESIA
REGULATORY OVERVIEW
Our business operations in Indonesia are subject to various laws and regulations. Please find
below an overview of the key laws and regulations relating our business.
GENERAL INVESTMENT REQUIREMENTS
A foreign investor which intends to establish a business in Indonesia must comply with certain
regulations related to the investment sector. In general, investment activities in Indonesia are
regulated by Law No. 25 of 2007 on Investments which then was amended by the Job Creation
Law (as amended, the “Indonesian Investment Law”). Currently, investment activities in
Indonesia are coordinated and supervised by the Ministry of Investment/Indonesian Investment
Coordinating Board (Badan Koordinasi Penanaman Modal) – “BKPM” as the authorized
agency in the investment field. The followings are the requirements related to conducting
investment activities that must be complied by a business actor:
Indonesia Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha di

Indonesia – “KBLI”)
In performing and monitoring the business sectors in Indonesia, the Indonesian Government
has issued the Indonesia Standard Industrial Classification – or KBLI, which serves as a
classification for the existing and regulated business lines. Currently, the applicable KBLI is
as stipulated and regulated under Statistics Indonesia (Badan Pusat Statistik – “BPS”)
Regulation No. 2 of 2020 (“KBLI 2020”), which revoked the prior applicable KBLI that was
regulated under Head of BPS Regulation No. 19 of 2017.
KBLI is also used to determine such company’s minimum investment value, required licensing,
and also foreign shareholder restrictions. Article 12 (1) of the Indonesian Investment Law
states that all business sectors shall be opened to investment activities, except for business
sectors that are declared to be closed to investment or activities that can only be carried out by
the Indonesian central government.
After the implementation of the Indonesian Investment Law, the President of the Republic of
Indonesia has issued the President Regulation No. 77 of 2007 dated July 3, 2007 which was last
amended by the President Regulation No. 10 of 2021 regarding Investment Business Fields,
which was partially amended by the Presidential Regulation No. 49 of 2021 on May 25, 2021
(“PR 49/2021”). Furthermore, Article 2 of PR 49/2021 (1a) states that the aforementioned open
business sectors refer to the business sectors that are commercial in nature.
Capital Requirement and Certain Shares Ownership
Indonesian laws also regulate the capital requirement for companies in accordance with their
sizes, i.e., micro, small, medium, or large-scale businesses.
As a further note, Article 12 of Guidelines and Procedures for Risk-Based Business Licensing
Services and Investment Facilities (“BKPM Regulation No. 4/2021”) stipulates that (every)
business that is classified as a Foreign Direct Investment (Penanaman Modal Asing) Company
shall be categorized as a large-scale business, which therefore must comply with the minimum
investment value and capital requirement which shall be more than Indonesian Rupiah (“IDR”)
10 billion for each line of business according to the KBLI codes (5 digits) and per project
– III-1 –
location, unless specified otherwise by the laws and regulations. Every new Foreign Direct
Investment made subsequent to the enactment of BKPM Regulation No. 4/2021 are also
required to have a minimum issued and paid-up capital of at least IDR 10 billion.
In relation to the general investment requirements in Indonesia, Article 33 (1) of the Indonesian
Investment Law stipulates that both domestic and foreign investors investing in the form of a
limited liability company are prohibited from entering into an agreement and/or making a
statement asserting that the ownership of shares in a limited liability is for and on behalf of
another person. According to Article 33 (2) of the Indonesian Investment Law, violation of the
abovementioned regulation will result in such agreement being declared as null and void.
Repatriation
The Indonesian Investment Law also regulates matters regarding repatriation, in which an
investor may transfer the assets they own to any party the investors desire in accordance with
the laws and regulations. Pursuant to Article 8 (3) of the Indonesian Investment Law, the
investors shall be granted the right to perform transfer and repatriation in foreign currencies for
a number of reasons as defined within the relevant regulations.
In relation to the above, Article 8 (5) of the Indonesian Investment Law further states that the
existence of this repatriation right does not reduce the Indonesian Government’s authority to
(a) enforce the provisions of the laws and regulations which requires the reporting of such fund
transfers; (b) impose tax on investments in accordance with the provisions of the laws and
regulations; (c) enforce the laws protecting the rights of creditors; and (d) enforce the law in
order to avoid losses to the state.
GENERAL COMPANY LICENSING REQUIREMENTS
General Company Licensing
The Government Regulation No. 5 of 2021 on the Implementation of Risk-Based Business

Licensing (“GR No. 5/2021”) stipulates that businesses are required to fulfill certain general
requirements for business licensing and/or risk-based business licensing in order to conduct its
business in the territory of Indonesia. Under Article 176 of the GR No. 5/2021, businesses shall
obtain a business identification number (“NIB”) as a business identity and legality of the
business, which remains valid as long as the company still conducts its business activities.
Furthermore, Article 12-14 of the GR No. 5/2021 regulates the business licensing obligations
i.e. NIB, standard certificate, and business license depending on the level of risk of the relevant
business activity. Pursuant to Article 212 (2) of GR No. 5/2021, a NIB can be revoked and
terminated under certain circumstances.
Environmental Licenses
Article 40 (1) of Law No. 32 of 2009 on Environmental Protection and Management as

partially amended by the Job Creation Law (as amended, “Indonesian Environmental Law”),
stipulates that an environmental license is required to obtain a business license.
In general, the environmental license under the law of Indonesia is divided into three
categories: (i) Environmental Impact Assessment (analisis mengenai dampak lingkungan –
“AMDAL”); (ii) Environmental Management Efforts and Environmental Monitoring Efforts
(Upaya Pengelolaan Lingkungan – Upaya Pemantauan Lingkungan – “UKL-UPL”); or (iii)
– III-2 –
the Statement of Capability for Environmental Management and Monitoring (Surat Pernyataan
Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup – “SPPL”), depending on the
environmental risk of each activity and/or business.
Based on Article 22 of Indonesian Environmental Law, should an activity and/or business be

deemed as having significant impact on the environment, the relevant activity and/or business
is mandated to obtain AMDAL. In addition, pursuant to Article 34 of Indonesian
Environmental Law, every activity and/or business that does not have a significant impact on
the environment and is not included in the mandatory AMDAL criteria must have UKL-UPL.
Moreover, the activity and/or business that does not have a significant impact on the
environment and is not included in the mandatory UKL-UPL criteria must have an SPPL.
Based on the Minister of the Environment Regulation No. 4 of 2021 on List of Businesses
and/or Activities that Must Have Environmental Impact Assessment, Environmental
Management Efforts and Environmental Monitoring Efforts, or the Statement of Capability for
Environmental Management and Monitoring (“MOER No. 4/2021”), there are certain
obligations to obtain environmental license in conducting construction activity, depending on
the relevant built-up area.
Pursuant to Article 82A and Article 82C of Indonesian Environmental Law, if business actors
conduct business activities without obtaining the valid licenses, administrative sanctions could
be imposed in stages.
Business Licensing
Postal Service Regulation
In general, postal service activities in Indonesia could be classified into two categories: (i)
Courier Activities; and (ii) Universal Postal Services, which are further elaborated below:
Courier Activities
In order to conduct business activities under KBLI 53201 (Courier Activities), a Postal
Operator shall obtain a postal operator license issued by the Ministry of Communication and
Information Technology (“MOCI”).
Based on Article 5 of Law No. 38 of 2009 on Postal as amended by the Job Creation Law (as
amended, “Indonesian Postal Law”), Article 3 of Government Regulation No. 46 of 2021 on
Postal, Telecommunication and Broadcasting (“GR No. 46/2021”) and Article 6 of MOCI
Regulation No. 4 of 2021 on Postal Operation (“MOCIR No. 4/2021”), the services of Postal
Operators include the following: (a) delivering written communications and/or electronic mail;
(b) delivering packages; (c) logistic services; (d) facilitating financial transactions; and/or (e)
provision of services as postal agent.
After obtaining the postal operator license, under the MOCIR No. 4/2021, a Postal Operator
has to fulfil certain obligations including: (a) submitting an annual Postal Operation Report to
MOCI; (b) payment of the Universal Postal Services (Layanan Pos Universal, “LPU”)
Implementation Contribution fees on an annual basis; and (c) submission of the LPU
Implementation Contribution Payment supporting documentation.
– III-3 –
Pursuant to Article 124 (1) and (3) of MOCIR No. 4/2021, failure to comply or fulfil the
aforementioned obligations shall result in the company being subject to administrative
sanctions. The imposition of administrative sanctions can be carried out in stages or
independently for each type of administrative sanction.
Universal Postal Services
Based on Article 1.3 of MOCIR No. 4/2021, LPU includes certain types of postal services that
are guaranteed by the government to reach the entire territory of the Republic of Indonesia
which allow people to send and/or receive mail. In addition, under Article 57 of MOCIR No.
4/2021, the operator of LPU is assigned by MOCI and determined by Ministerial Decree.
The business activity of Universal Postal Activities is classified under KBLI 53100 (Postal
Activities, or previously known as the Universal Postal Activities). In order to carry out
business under KBLI 53100 (Postal Activities), the postal company would have to fulfil certain
additional criteria including: (a) be appointed by MOCI; (b) has experience in conducting
postal activities for a minimum of 25 (twenty-five) years; (c) owns and/or controls the postal
network throughout the territory of Indonesia; and (d) has the capability and resources to
deliver postal items worldwide.
Joint Venture Between Foreign Postal Operator and Indonesia Postal Operator
Article 113 of MOCIR No. 4/2021 states that Foreign Postal Operators would be allowed to
conduct postal activities within the territory of the Republic of Indonesia subject to the
following conditions: (a) the Foreign Postal Operator must enter into a joint venture with an
Indonesian Postal Operator; and (b) the operational area will be limited to only the provincial
capital.
Such Foreign Postal Operators can only conduct postal activities in Indonesia by establishing
a new joint venture entity (“new JV”) with an Indonesian Postal Operator. The new JV must
be incorporated in Indonesia and the Foreign Postal Operator is allowed to subscribe for a
certain percentage of shares during the establishment of the new JV.
Pursuant to the elucidation of Article 11 (1) (b) of Indonesian Postal Law, the Foreign Postal
Operator refers to foreign business entities that provide postal services outside of Indonesia.
According to our consultation with MOCI, the Foreign Postal Operator and any of its affiliates
are different separate entities. As such, the operation of its affiliates will not be taken into
consideration as the operations of the relevant Foreign Postal Operator (separate entities). In
conclusion, if a parent company does not conduct the business of courier activities but the
affiliates do, such parent company cannot be considered as a Postal Operator (and vice versa).
A Foreign Non-Postal Operator Cannot Subscribe for Shares in an Indonesian Postal Company
Based on Article 11 of the Indonesian Postal Law, an Indonesian Postal Operator could
cooperate with a Foreign Non-Postal Operator. However, such cooperation between Indonesian
Postal Operators and Foreign Non-Postal Operators expressly prohibits the Foreign Non-Postal
Operator (or any holding entities it may control) from directly owning shares of the Indonesian
Postal Operator. This position has been further confirmed by MOCI following a formal
consultation.
– III-4 –
Trade Activities Regulations
In Indonesia, trade activities are generally governed under the Law No. 7 of 2014 on Trade as
partially amended by the Job Creation Law (as amended, “Trade Law”). Based on Article 24
Trade Law, a business that conducts trade activities shall obtain the relevant business licensing
i.e., Trade Business License (Surat Izin Usaha Perdagangan – “SIUP”).
Pursuant to Article 24 of the Trade Law, every business owner who carries out trading business
activities but does not fulfill/obtain a business license is subject to administrative sanctions.
In addition, pursuant to Article 106 of Trade Law, business owners who carry out trading
business activities without a business license for trade activities might face imprisonment of
up to 4 (four) years and/or a maximum fine of IDR 10,000,000,000.
MANDATORY INVESTMENT REPORT (LAPORAN KEGIATAN PENANAMAN

MODAL – “LKPM”)
In relation to investment activities that are being conducted in Indonesia, BKPM has issued a
set of regulations, which stipulate the need for companies to submit LKPM to the BKPM
periodically. The obligation of submitting LKPM varies, depending on the size and
capitalization of the company.
Pursuant to Article 47 of BKPM Regulation No. 5/2021, failure to comply or fulfil the
aforementioned obligations shall result in the company being subject to administrative
sanctions which will be imposed in stages.
EMPLOYMENT LICENSES, WORK SAFETY AND HEALTH REQUIREMENTS AND

EMPLOYEE SOCIAL AND HEALTH INSURANCE
Employment Licenses
Law No. 13 of 2003 as partially amended by the Job Creation Law (as amended, the
“Employment Law”) governs employment related issues. Based on Article 42 of the
Employment Law in conjunction with Article 6 of Government Regulation No. 34 of 2021
regarding the Recruitment of Foreign Workers (“GR No. 34/2021”), the employment of foreign
workers necessitates a Foreign Workers Recruitment Plan (Rencana Penggunaan Tenaga Kerja
Asing – “RPTKA”) validated by the Ministry of Manpower. After obtaining the RPTKA,
pursuant to Article 27 of GR No. 34/2021, the employer is required to obtain stay permits for
their foreign workers residing in Indonesia, namely Limited Stay Permit (Izin Tinggal Terbatas
– “ITAS”), which is further regulated by the Minister of Law and Human Rights Regulations
No. 16 of 2018 on Visa and Stay Permit for Foreign Workers (“MOLHR Regulation No.
16/2018”). The GR No. 34/2021 further stipulates additional requirements whereby failure to
comply shall result in the company being subject to administrative sanctions.
In addition, Law No. 7 of 1981 on the Mandatory Manpower Report in a Company (the
“Manpower Report Law”) states that every company in Indonesia must submit an annual
report regarding its manpower (known as Wajib Lapor Ketenagakerjaan di Perusahaan –
“WLKP”) to the relevant authority. The consequences for not complying with the obligation
to report WLKP pursuant to Article 10 of the Manpower Report Law include: (a) fine up to the
maximum amount of IDR 1,000,000 or (b) detention for up to 3 (three) months if the employer
has failed to comply with its obligations for the second time or more.
– III-5 –
Pursuant to Article 108 of Employment Law, a company that employs at least 10 (ten)
employees must have company regulations regulating: (a) the rights and obligations of the
employees and employers; (b) working terms and conditions; (c) company procedure; and (d)
the validity period of the company regulations.
Pursuant to Article 111 of Employment Law, company regulations will remain to be effective
for the period of 2 (two) years. The company regulations will be effective after it has been
ratified by the Ministry of Manpower.
Work Safety and Health Requirements
Indonesian laws and regulations protect every employee’s right to safe working conditions,
which is governed by the Law No. 1 of 1970 on Occupational Health and Safety
(“Occupational Health and Safety Law”). The provisions set out in the Occupational Health
and Safety Law cover all working places conducted in the territory of the Republic of Indonesia
and stipulate the employers which would be required to implement Occupational Health and
Safety Management Systems. Any violation of Article 87 of the Employment Law would result
in administrative sanctions to be imposed in stages governed under Article 190 of Employment
Law.
Employee Social and Health Insurance
Pursuant to Article 14 and 15 of Law No. 24 of 2011 on Agency of Employee Social Security
(Badan Penyelenggaraan Jaminan Sosial – “BPJS”) as partially amended by the Job Creation
Law (as amended, “BPJS Law”), Indonesian employers are obliged to register themselves and
their workers for BPJS. Pursuant to Article 14 of the BPJS Law, domestic and foreign
employees who work for a minimum of 6 (six) months in Indonesian territory are obliged to
obtain BPJS, which is registered by employers.
Pursuant to Article 6 of BPJS Regulation No. 6 of 2018 on Health Insurance Program

Participation Administration as partially amended by BPJS Regulation No. 6 of 2019 on
Amendment BPJS Regulation No. 6 of 2018 on Health Insurance Program Participation
Administration (“BPJS Regulation No. 6/2018”), everyone is obliged to participate and
contribute to the health insurance program.
According to Article 19 of BPJS Law, the employer is also obliged to contribute to the BPJS
of its employees on a monthly basis. The contribution shall be collected from both the
employer and the employee. Based on Article 17 of BPJS Law in conjunction with Article 5
(2) of the Government Regulation No. 86 of 2013 on the procedures for imposing
administrative sanctions to employers other than state administrators and any persons, other
than employers, employees, and assistance recipients in the administration of social security,
the non-compliance of this obligation will be subject to administrative sanctions.
The sanctions will be given in stages in the forms of: (a) written warning; (b) fine payment;
and/or (c) rejection to obtain public services. However, if the employer has been given a
sanction in form of point (c) above, then the employer will be denied from applying any
licenses related to its employee or its business. Therefore, it is crucial for the employer to
register the BPJS.
Following the issuance of Government Regulation in Lieu of the Law No. 2 of 2022 on Job
Creation, the Government has now issued Government Regulation No. 37 of 2021 on the
Implementation of Loss of Job Security Program (“GR No. 37/2021”) which sets out further
provisions on the organization of the unemployment insurance program (jaminan kehilangan
pekerjaan – “JKP”), a program held by the Indonesian central government and BPJS
employment that guarantees workers that have been laid off to obtain certain benefits.
– III-6 –
Based on Article 2 of GR No. 37/2021, employers are required to register their workers as
members of the JKP program if they are eligible.
Further, based on Article 37 of GR No. 37/2021, an employer’s (with the exception of

micro-scale employers) failure to register their workers under the JKP program will result in
them having to provide the following benefits to workers if they are terminated: (a) cash
payments, in accordance with the provisions elaborated upon in the above table; and (b) work
training.
TRANSACTION REQUIREMENTS
Mandatory Use of Rupiah Currency
Bank of Indonesia (“BI”), as the authorized authority which supervises the monetary and the
banking system of Indonesia, issued Bank Indonesia Regulation No. 17/3/PBI/2015 on
Mandatory Use of Rupiah in the Territory of the Republic of Indonesia (“BI Regulation No.
17/2015”) and Circular Letter of Bank Indonesia No. 17/11/DKSP of 2015 on Mandatory Use
of Rupiah in the Territory of the Republic of Indonesia (“BI Circular Letter No. 17/2015”), in
order to achieve and maintain the stability of Rupiah as the official currency of Indonesia.
Under Article 2 and 3 of BI Regulation No. 17/2015, BI provides the obligation for all parties
(regardless of the nationality) to use Rupiah as the lawful currency of Indonesia in any
transactions (both cash and non-cash) conducted within the territory of the Republic of
Indonesia. The mandatory use of Rupiah is applicable to any transaction that is: (1) intended
for payment purposes; (2) intended to fulfill obligations that must be performed by money; and
(3) intended for other financial services transactions, such as the deposit of money into a bank
account – whether it is conducted by Indonesian or non-Indonesian parties. Article 4 and 5 of
BI Regulation No. 17/2015 further set out certain exemptions to the mandatory use of Rupiah.
Should a violation of BI No. 17/2015 be incurred, sanctions in the form of a maximum of a

one-year imprisonment or fine of up to IDR 200,000,000 (two hundred million Indonesian
Rupiah) could be imposed. Moreover, Articles 18 and 20 of BI No. 17/2015 also stipulate an
administrative sanction should any party refuse to use Rupiah in any non-cash transactions.
LAWS AND REGULATIONS IN RELATION TO OUR BUSINESS IN THE PHILIPPINES
REGULATORY OVERVIEW
Our business operations in Philippines are subject to various laws and regulations. Please find
below an overview of the key laws and regulations relating to our business.
REGULATION OF PUBLIC UTILITIES, LAND OWNERSHIP, AND OTHER RELATED

MATTERS
Foreign Ownership Restriction
The Philippine Constitution restricts the operation of a public utility to citizens of the
Philippines or to corporations or associations organized under the laws of the Philippines at
least 60% of whose capital is owned by such citizens. It also mandates that all the executive
and managing officers of such public utility be citizens of the Philippines. Private express
and/or messenger delivery service, as well as domestic airfreight forwarding, were previously
considered to be public utilities.
– III-7 –
The Philippine Constitution likewise restricts the ownership of land to Philippine nationals and
to corporations at least 60% the capital of which is owned by citizens of the Philippines.
Republic Act No. 7042 (as amended, the (“Foreign Investments Act”), defines a Philippine
national as, among others, a citizen of the Philippines or a corporation organized under the laws
of the Philippines of which at least sixty percent (60%) of the capital stock outstanding and
entitled to vote is owned and held by citizens of the Philippines. Under Memorandum Circular
No. 8, series of 2013 issued by the Philippine Securities and Exchange Commission (the
“PSEC”), the minimum Filipino percentage of ownership applies to both (a) the total number
of outstanding shares of stock entitled to vote in the election of directors, and (b) the total
number of outstanding shares of stock, whether or not entitled to vote in the election of
directors.
Commonwealth Act No. 108, known as the Anti-Dummy Law (“ADL”), imposes criminal
liability upon, among others, (a) any entity exercising a right or franchise that is reserved for
Philippine citizens or entities without complying with the required ownership by Philippine
citizens, (b) any person who allows his name or citizenship to be used for the purpose of
evading such ownership requirement, or (c) who falsely simulates the existence of the required
minimum percentage of Philippine ownership. The ADL also penalizes persons, corporations
or partnerships that allow foreigners to intervene in the management, control or administration
of such entity and any person who knowingly aids, assists or abets in the planning,
consummation or perpetration of such acts by imprisonment and/or fine. It also limits the
participation of foreign shareholders in the governing body of corporations covered thereunder
to the foreign shareholders’ proportionate share in the corporation’s capital, and mandates that
the corporation’s officers and employees be Filipino citizens, except for alien technical
personnel specifically authorized by the Secretary of the Philippine Department of Justice
(“DOJ Secretary”).
Commonwealth Act No. 146, as amended (the “Public Service Act”), lists common carriers
and freight service in the definition of the term “public service.” On March 21, 2022, the
President has signed into law Republic Act No. 11659 or an Act Amending Commonwealth Act
No. 146, otherwise known as the Public Service Act, (“PSA Amendment”), which shall take
effect 15 days after its publication in the Official Gazette or in a newspaper of general
circulation. It was published in the online version of the Official Gazette on March 23, 2022
and in a newspaper of general circulation on March 25, 2022. Thus, it became effective on
April 7, 2022. The implementing rules to the PSA Amendment was published on March 20,
2023 and took effect on April 4, 2023.
The PSA Amendment provides for an exclusive enumeration of what constitutes a public utility
and states that “[n]o other person shall be deemed a public utility unless otherwise
subsequently declared by law.”
Under the PSA Amendment, private express and/or messenger delivery service, as well as
domestic airfreight forwarding, are no longer considered public utilities and are therefore no
longer subject to minimum 60% Filipino ownership.
– III-8 –
REGULATIONS ON FREIGHT FORWARDING
Freight Forwarding by Air (Domestic and International)
Republic Act No. 776 or the Civil Aeronautics Act of the Philippines (“Civil Aeronautics
Act”) provides for the regulatory framework for freight forwarding by air. It defines an air
freight forwarder as an indirect air carrier which, in the ordinary and usual course of its
undertaking, assembles and consolidates or provides for assembling and consolidating such
property or performs or provides for the performance of break-bulk and distributing operations
with respect to consolidated shipments, and is responsible for the transportation of property
from the point of receipt to point of destination and utilizes for the whole or any part of such
transportation the services of a direct air carrier.
Pursuant to the provisions of the Civil Aeronautics Act, an entity may only be allowed to
operate an as airfreight forwarder if it possesses a Certificate of Authority to engage in the
business of an International and/or Domestic Freight Forwarder issued by the Civil Aeronautics
Board (“CAB”). Permits for domestic freight forwarding may only be granted to citizens of the
Philippines. For this purpose, “citizen of the Philippines” means (a) an individual who is a
citizen of the Philippines; or (b) a partnership of which each member is such an individual; or
(c) a corporation or association created or organized under the laws of the Philippines, of which
the directing head and two-thirds (2/3) or more of the Board of Directors and other managing
officers are citizens of the Philippines, and in which 60% of the voting interest is owned or
controlled by persons who are citizens of the Philippines. The PSA Amendment has repealed
this nationality restriction. No permit may be transferred without the prior approval of the
CAB. Operating without an authorization by CAB is subject to administrative and criminal
penalties.
Pursuant to its authority under the Civil Aeronautics Act, the CAB issued Economic Regulation
No. 4 (“ER-4”) or the Economic Regulation on Air Freight Forwarder and Off-line Carriers.
Among other things, ER-4 requires securing (i) a letter of authority issued by the CAB before
operating as an air freight forwarder and (ii) CAB approval before adopting a commercial or
business name. Further, no air freight forwarder shall engage in the performance of transfer,
collection or delivery services unless it files with the CAB a satisfactory certificate of
insurance evidencing a properly endorsed insurance policy or surety bond, conditioned to pay
any final judgment recovered against it on account of, among other things, loss of or damage
to property, resulting from the negligent operation, maintenance or use of motor vehicle
operation by or under its direction and control.
Freight Forwarding by Sea (Domestic and International)
Executive Order No. 514 (“EO 514”) provides for the regulatory framework for freight
forwarding by sea and grants to the Philippine Shippers’ Bureau (the “PSB”), now, the Fair
Trade Enforcement Bureau of the Department of Trade and Industry (“FTEB”) the power to,
among others, register and accredit non-vessel operating common carriers, freight forwarders,
cargo consolidators and break-bulk agents in accordance with existing agreements and charge
reasonable fees therefor.
Pursuant to the foregoing authority, the PSB issued the Revised Rules on Freight Forwarding
(the “PSB Rules”), which the FTEB has adopted. The PSB Rules, defines an international
freight forwarder as a local entity that acts as a cargo intermediary and facilitates transport of
goods on behalf of its client without assuming the role of a carrier. An international freight
forwarder can also perform other forwarding services, such as booking cargo space, negotiating
freight rates, preparing documents, advancing freight payments, providing packing/crating,
– III-9 –
trucking and warehousing, engaging as an agent/representative of a foreign Non-Vessel

Operating Common Carrier/cargo consolidator named in a master bill of lading as consignee
of a consolidated shipment, and other related undertakings.
A domestic freight forwarder, on the other hand, is defined under the PSB Rules as an entity
that facilitates and provides the transport of cargo and distribution of goods within the
Philippines on behalf of its client.
The PSB Rules require international and/or domestic freight forwarders to secure a Certificate
of Accreditation from the FTEB in order to conduct sea freight forwarding activities. The
Certificate of Accreditation has a life span of two years unless sooner cancelled or revoked
under the PSB Rules. The Certificate of Accreditation cannot be transferred, alienated, or
inherited, in any manner.
A company must obtain the necessary certificate depending on its business. Moreover, every
branch of an international and domestic freight forwarder must first be accredited before such
branch can legally engage in the freight forwarding business. Violations of the PSB Rules may
result in the imposition of fines and other administrative penalties.
Foreign Ownership Restriction in Freight Forwarding
Domestic freight forwarding was previously considered a “public utility” which is subject to
a minimum of 60% Filipino ownership requirement. However, the PSA Amendment has taken
out this activity from the definition of a “public utility” that is restricted to Filipinos and to
corporations at least 60% of the capital of which is owned by Filipino citizens.
There was a divergence of opinion with regard to whether international freight forwarding may
be foreign-owned. On the one hand, the PSEC, citing issuances of the Philippine Department
of Justice (“DOJ”), has opined that corporations engaged exclusively in international freight
forwarding are considered beyond the purview of the nationality requirement for the operation
of public utilities and therefore, may be owned up to 100% by foreigners. On the other hand,
a division of the Court of Appeals had ruled in Merit Freight International, Inc. v. Federal
Express Pacific, Inc., C.A.-G.R. SP No. 119658 and Ace Logistics Inc., v. Federal Express
Pacific, Inc., C.A.-G.R. SP. No. 121661, (consolidated) (January 23, 2013), which involved a
complaint against the grant of provision and regular permit to Federal Express to operate as an
international freight forwarder, that foreign corporations are disqualified from operating as
international airfreight forwarders in the Philippines, being violative of the nationality
restrictions under the Philippine Constitution. In this case, the Court of Appeals mentioned the
DOJ opinion which ruled that international airfreight forwarders are not covered by the
nationality requirement, but nevertheless held that, while the DOJ opinion is persuasive, the
court is not bound by the resolution of the DOJ Secretary. The case is pending appeal with the
Supreme Court. In the meantime, however, the PSEC has issued opinions reiterating its view
that international freight forwarding may be foreign-owned.
This issue is now rendered moot with the passage of the PSA Amendment as mentioned above.
Thus, international freight forwarding activity is no longer considered nationalized – i.e.,
subject to the 40% foreign ownership restriction.
– III-10 –
REGULATIONS ON PRIVATE EXPRESS AND/OR MESSENGER DELIVERY

SERVICE (“PEMEDES”)
Authority to Operate PEMEDES
Presidential Decree No. 240 issued on July 9, 1973 states that no express and/or messenger
delivery service firm shall operate in the Philippines without possessing an “Authority to
Operate and/or Messenger Delivery Service” to be issued by the Postmaster General (now the
Department of Information and Communications Technology or the “DICT”).
Under Republic Act No. 7354 or the Postal Service Act of 1992, the Department of
Transportation and Communications (“DOTC”) (whose functions relating to the operation and
maintenance of a national postal system including delivery services are transferred to the
DICT) was given the exclusive power and authority to regulate the postal delivery services
industry or those engaged in domestic postal commerce, including the registration and
prequalification of any natural or juridical person, other than freight forwarders, who engage
in the business of letter and parcel messengerial services, door-to-door delivery, or the
transporting of the property of others that are similar to mail or parcel.
“Mail” or “mail matters” refer to all matters authorized by the government to be delivered
through the postal service and shall include letters, parcels, printed materials, and money
orders. “Parcel” means a rectangular box, the dimension and weight of which is as specified
by the Philippine Postal Corporation or the Government containing goods or some form of
transportable property intended for delivery to an addressee prominently displayed on at least
one of its sides.
Under DOTC Department Circular No. 2001-01 (“DC 2001-01”), which the DICT has adopted
as stated in DICT Department Order No. 001, Series of 2017, an “Express and/or Messengerial
Delivery Service Firm” is defined as those that own, operate, manage or control in the
Philippines, for hire or compensation, with general or limited clientele, whether permanent,
occasional or accidental, and for general business purposes, any service for the personal
delivery to other persons, of written messages and any mail matter, except telegram.
The DICT has proposed revised rules in procedures for applications for issuance/grant/renewal
of authority to operate PEMEDES, including the processing, hearing, and adjudicating
applications thereof and the investigation of complaints in connection with the operation of
such services.
DC 2001-01 provides that only citizens of the Philippines or entities at least 60% of whose
capital stock is owned by citizens of the Philippines may apply to operate a PEMEDES. The
DICT has not yet amended this notwithstanding the passage and effectivity of the PSA
Amendment.
A holder of a PEMEDES license must comply with certain terms and conditions, including that:
• any change in the composition of the stockholders/stockholdings, directors and

officers must be submitted to the DICT for prior approval and/or notations;
• the grantee shall neither lease, transfer, sell or assign the authority and the rights and
privileges appurtenant thereto to any person, firm, company, corporation or other
legal entity nor merge with any other person, company or corporation organized for
the same purpose, without the approval of the DICT;
– III-11 –
• the grantee shall not allow other persons or entities to operate under its authority to
operate PEMEDES under a contract of agency, on commission basis or other
arrangements; and
• the grantee shall not open or operate a branch in authorized places without notifying
the DICT within 10 days prior to actual operations; and
• Any violation of the conditions will be subject to corresponding penalties or ground

for revocation or cancellation of such authority.
The DICT has recently issued Department Circular No. 001, Series of 2022 dated April 8, 2022
(“DC 2022-001”) which rationalizes the registration, accreditation and monitoring of
PEMEDES operators. Under DC 2022-001, the ICT Infrastructure and Services and Enabling
Division (“IISED”) (formerly the Postal Regulation Division) is created to expedite the
application process for new entrants for the PEMEDES industry. The IISED is under the
control and supervision of the DICT Office of the Undersecretary for Digital Philippines
(“OUDP”) and will handle the processing and evaluation for registration of, among others,
PEMEDES operators and their subsequent monitoring and regulation. Under the DC 2022-001,
the OUDP and IISED are tasked to ensure that all relevant processes are simplified through
process reengineering and through the use of appropriate digital technologies. They are also
authorized to impose and collect reasonable fees to cover the costs of administration and
regulation over the PEMEDES operators, among others.
Messenger’s Work License
Every operator of PEMEDES must also secure from the DICT a Messenger’s Work License for
every person it employs as a messenger. The Messenger’s Work License will be valid for two
years and may be renewed for the same period after the messenger concerned is ascertained to
have no derogatory record. However, notwithstanding the requirement under the PEMEDES
Rules obtain Messenger’s Work Licenses, the DICT is not able to process applications for
messenger’s work licenses. Consequently, the DICT issued Department Circular No. 002 dated
February 21, 2020, which requires PEMEDES operators to submit (i) a complete list of
employees functioning as messengers/couriers, and (ii) their respective Messenger’s Work
License Number, if any.
– III-12 –
REGULATIONS ON DATA PRIVACY
Republic Act No. 10173 (Data Privacy Act of 2012) (the “DPA”), its implementing rules and
regulations, and the issuances of the National Privacy Commission (“Philippine NPC”) govern
the processing of all types of personal information “Personal Information” is defined as any
information whether recorded in a material form or not, from which the identity of an
individual is apparent or can be reasonably and directly ascertained by the entity holding the
information, or when put together with other information would directly and certainly identify
an individual. The DPA applies to any natural and juridical person involved in personal
information processing including those personal information controllers and processors who,
although not found or established in the Philippines, use equipment that are located in the
Philippines, or those who maintain an office, branch or agency in the Philippines, subject to
certain exceptions.
The DPA expressly requires that before an entity can collate, process, and then use or share
personal data, the personal information controller or processor must have a lawful criterion or
basis for processing, such as consent (which is defined as any freely given, specific, informed
indication of will, whereby the data subject agrees to the collection and processing of his or
her personal data). Such entity must also register with the Philippine NPC and appoint a data
protection officer.
The DPA and its implementing rules require personal information controllers and processors to
have a data protection officer or compliance officer who shall be accountable for ensuring
compliance with applicable laws and regulations for the protection of data privacy and security.
Personal information controllers (“PICs”) and personal information processors (“PIPs”) must
also (i) conduct a privacy impact assessment as part of the organizational security measures
pursuant to Philippine NPC Advisory No. 2017-03, and (ii) register its data processing system
with the Philippine NPC if any of the following thresholds are met: (a) it employs at least 250
employees; (b) the processing it conducts is likely to pose a risk to the rights and freedoms of
the data subjects; (c) it processes the sensitive personal information of at least 1,000
individuals; or (d) the processing involves automated decision making or profiling, pursuant to
Philippine NPC Circular No. 2022-04. PICs and PIPs who do not fall under mandatory
registration and do not undertake voluntary registration are required to submit a sworn
declaration to the Philippine NPC stating, among other things, why they are not required to
register.
PICs and PIPs are also required to constitute a data breach response team and proper
documentation under Philippine NPC Circular No. 2016-03.
Data sharing arrangements (which involves the transfer of disclosure of personal information
from one personal information to another personal information controller) and data outsourcing
arrangements (which involve the transfer or disclosure of personal information from a personal
information controller to a personal information processor) are also regulated under the DPA
and its implementing rules and regulations.
Non-compliance with the DPA is subject to administrative and criminal penalties. On August
8, 2022, the Philippine NPC issued Philippine NPC Circular No. 2022-01 or the Guidelines on
Administrative Fines. Philippine NPC Circular No. 2022-01 provides for the imposition of
administrative fines for data privacy infractions committed by PICs and PIPs. Depending on
whether the violation is grave or major, the Philippine NPC will impose administrative fines
ranging from 0.5% to 3% and 0.25% to 2%, respectively, of the annual gross income of the PIC
or PIP that committed the infraction. As for other violations, the PIC or PIP shall be subject
– III-13 –
to an administrative fine of not less than Philippine Peso (“PHP”) 50,000 but not exceeding
PHP200,000 for either of the following: (1) failure to register the true identity or contact details
of the PIC, the data processing system, or information on automated decision making; or (2)
failure to provide updated information as to the identity or contact details of the PIC, the data
processing system, or information on automated decision making. The failure to comply with
any Order, Resolution, or Decision of the Philippine NPC, or of any of its duly authorized
officers, will result to an administrative fine not exceeding PHP50,000 on top of the fine
imposed for the original infraction. Philippine NPC Circular No. 2022-01 also enumerates the
circumstances that will be taken into consideration in computing the fine. PICs or PIPs that
refuse to pay the administrative fine may be subject to a Cease and Desist Order, other
processes or reliefs as the Philippine NPC may be authorized to initiate pursuant to the DPA,
and appropriate contempt proceedings under the Rules of Court. Philippine NPC Circular No.
2022-01 applies prospectively. Complaints already filed to the Philippine NPC are not affected
by the said issuance.
REGULATIONS ON COMPETITION LAW
Republic Act No. 10667 (Philippine Competition Act) (“PCA”) is the primary competition
policy of the Philippines. It came into effect on August 8, 2015 and was enacted to provide free
and fair competition in trade, industry and all commercial economic activities. The PCA
prohibits practices that restrict market competition through anti-competitive agreements and
abuse of a dominant position and requires parties to notify and obtain clearance for certain
mergers and acquisitions. The PCA prescribes administrative and criminal penalties for
violations of its provisions.
The PCA also requires compulsory notification for mergers and acquisitions which meet certain
thresholds. Starting March 1, 2023, the thresholds are PHP7 billion for the Size of Party Test
and PHP2.9 billion for the Size of Transaction Test. These thresholds are subject to annual
adjustment based on the Gross Domestic Product of the Philippines.
REGULATIONS ON EMPLOYMENT
General Labor Standards
The Labor Code of the Philippines, as amended (“Philippine Labor Code”) and various labor
laws govern the employer’s relationship with its employees and provide the minimum benefits
the employer is required to provide to its employees. These laws include minimum wage
requirements, mandatory leave benefits, mandatory health benefits, overtime compensation,
retirement pay, separation pay, and other wage and benefit requirements. The non-payment of
statutory benefits or the payment of benefits that are less than those required by law may
expose an employer to (i) monetary claims subject to a three-year prescriptive period; (ii)
issuance of compliance order or writ of execution during labor inspection audits of the
Department of Labor and Employment (“DOLE”); and (iii) potential criminal liability in case
of non-compliance with the compliance order. Further, if the employer is unconditionally and
consistently providing benefits that are greater than what the law provides, it cannot
unilaterally reduce, diminish, discontinue or withdraw such benefits without violating the
principle of non-diminution of benefits.
Labor Unions
The Philippine Labor Code and Department Order No. 40, series of 2003, as amended, issued
by the DOLE set out the guidelines for the formation of labor unions. In unionized
establishments, the collective bargaining agreement (“CBA”) entered into by the management
– III-14 –
with the labor union governs the terms and conditions of employment of the union members.
Labor unions in the Philippines that have been certified as sole and exclusive bargaining agents
may request the management to enter into a CBA and negotiate the terms of their employment,
including salaries and benefits, which may be higher than the minimum required by law. While
a CBA is effective for five years, the union may renegotiate the economic terms (or those
provisions affecting the salaries and benefits of the employees) not later than three years from
the execution of the agreements, which may further result in periodic increase of costs for the
employer.
Under the Philippine Labor Code, the management has the duty to enter into collective
bargaining negotiations with a union in good faith. The management should be cautious not to
perform any of the following unfair labor practices: (a) require as a condition of employment
that a person or an employee shall not join a labor organization or shall withdraw from one to
which he belongs; (b) contract out services or functions being performed by union members
when such will interfere with, restrain, or coerce employees in the exercise of their right to
self-organization; (c) discriminate as regards to wages, hours of work, and other terms and
conditions of employment in order to encourage or discourage membership in any labor
organization; and (d) dismiss, discharge, prejudice or discriminate against an employee for
having given or being about to give testimony under the Philippine Labor Code. Unfair labor
practices violate the constitutional right of workers and employees to self-organization, and are
inimical to the legitimate interests of both labor and management. The commission of unfair
labor practices exposes the employer to civil and criminal liabilities.
Prohibition on Engagement of Foreign Nationals in Partly Nationalized Business
Section 2-A of the ADL prohibits the participation of non-Philippine nationals in the
management, operation, administration or control of a company in wholly or partly
nationalized business, whether as an officer, employee or laborer therein with or without
remuneration, except where: (i) the Secretary of Justice specifically authorizes the employment
of alien technical personnel; and (ii) the foreign nationals are elected as members of the board
of directors or governing body of corporations or associations in proportion to their allowable
participation in the capital of such entities. In DOJ Opinion No. 239 dated November 12, 1976,
the term “technical personnel” would generally include any person who has special
extraordinary or practical knowledge, specially of a mechanical or scientific occupation.
Violations of the ADL may be punished by a penalty of imprisonment for not less than five but
not more than 15 years and by a fine of not less than the value of the right, franchise or
privilege enjoyed or acquired in violation of the ADL, but in no case less than PHP5,000
(approximately US$100). If the violator is a corporation, the penalties would be imposed on the
President, manager, and directors of the company in question and any person who knowingly
aids, assists, or abets in the planning, consummation, or perpetration of the violation.
Occupational Safety and Health Standards
Rule 1020 of the Occupational Safety and Health Standards (“OSHS”) requires every employer
to register its business with the relevant Regional Office of the DOLE on a per location basis
within 30 days before the start of operations. In addition, the OSHS and DOLE Department
Order No. 198, series of 2018 require employers to engage health personnel and safety officers
and provide health facilities depending on the number of employees per location and the
company’s risk classification. The willful failure or refusal of an employer to comply with the
OSHS requirements shall make it liable for administrative fines. The failure or refusal to
comply with OSHS shall be deemed willful when done voluntarily, deliberately and
intentionally. The penalty shall be computed on a per day basis until full compliance reckoned
from the date of the notice of violation or service of the compliance order to the employer.
– III-15 –
Registration with Social Welfare Agencies
Under the Social Security Act of 2018, social security coverage is compulsory for all
employees under 60 years of age. An employer is obligated to deduct and withhold from each
employee’s monthly salary, wage, compensation or earnings, the employee’s contribution, and
the employer, for its part, makes a counterpart contribution for the employee, and remits both
amounts to the Social Security System (“SSS”). This enables the employees to claim their
pension, death benefits, permanent disability benefits, funeral benefits, sickness benefits and
maternity-leave benefits. The failure to register employees or deduct contributions from the
employees’ compensation and remit the same to the SSS is punishable by a fine of not less than
PHP5,000 but not more than PHP20,000 (approximately US$100 to US$400) and
imprisonment for not less than six years and one day but not more than 12 years, or both, at
the discretion of the court.
The Universal Health Care Act requires every employer to report its employees to the
Philippine Health Insurance Corporation (“PhilHealth”), and deduct and withhold the
contributions from the employee’s salary, wage or earnings, make a counterpart contribution
for the employee, and remit both amounts to PhilHealth. An employer who fails or refuses to
register its employees or timely and accurately deduct contributions from the employee’s
compensation shall be punished with a fine of PHP50,000 for (approximately US$1,000) every
violation per affected employee, or imprisonment of not less than six months but not more than
one year, or both.
The Home Development Fund Law created the Home Development Mutual Fund (“HDMF”),
a national savings program as well as a fund to provide for affordable shelter financing to
Filipino workers. Coverage under the HDMF is compulsory for all SSS members and their
employers. Under the law, an employer must deduct and withhold 2% of the employee’s
monthly compensation, up to a maximum of PHP5,000 (approximately US$100), and likewise
make a counterpart contribution of 2% of the employee’s monthly compensation, and remit the
contributions to the HDMF. The non-compliance with the obligations under the HDMF Law is
punishable by a fine of not less than, but not more than, twice the amount involved or
imprisonment of not more than six years or both fine and imprisonment. When the offender is
a corporation, the penalty will be imposed upon the members of the governing board and the
President or General Manager, without prejudice to the prosecution of related offenses under
the Revised Penal Code and other laws, revocation and denial of operating rights and privileges
in the Philippines, and deportation when the offender is a foreigner.
Independent Contractor
Job contracting or outsourcing of work is allowed in the Philippines, but it is heavily regulated
by the Labor Code of the Philippines, as amended, and DOLE Department Order No. 174,
series of 2017 (“DOLE DO 174-17”). There is legitimate or permissible contracting where the
contractor (i) is engaged in a distinct and independent business and undertakes to perform the
job or work on its own responsibility, according to its own manner and method; (ii) has
substantial capital to carry out the job farmed out by the principal on his account, manner and
method, and investment in the form of tools, equipment and supervision; (iii) is free from the
control and/or direction of the principal in all matters connected with the performance of the
work except as to the result thereof; and (iv) enters into a service agreement that ensures
compliance with all the rights and benefits of all the employees of the contractor under the
labor laws. On the other hand, DOLE DO 174-17 prohibits labor-only contracting, which is an
arrangement where the contractor merely supplies workers to an employer and any of the
following arrangements exists: (i) the contractor does not have substantial capital or
investments to perform the job, and the employees recruited and placed by the contractor are
– III-16 –
performing activities which are directly related to the main business operation of the principal;
or (ii) the contractor does not exercise the right to control over the performance of the work
of the employee. In case of a finding of labor-only contracting, the contractor shall be
considered merely as an agent of the principal who shall be responsible to the workers in the
same manner and extent as if the latter were directly employed by the principal.
DOLE DO 174-17 also requires all entities acting as job contractors to register with the DOLE
Regional Office where they principally operate. Failure on the part of the contractor to register
with the DOLE gives rise to the presumption that it is engaged in the prohibited labor-only
contracting.
TAXATION
Tax on Dividends
Cash and property dividends received from a domestic corporation by individual shareholders
who are either citizens or residents of the Philippines are subject to income tax at a final
withholding tax rate of 10%, which shall be withheld by the Philippine company. Subject to the
applicable preferential tax rates under income tax treaties executed between the Philippines and
the country of residence or domicile of such non-resident alien individuals, cash and property
dividends received by (a) non-resident alien individuals engaged in trade or business in the
Philippines are subject to income tax at a 20% final withholding tax rate on the gross amount
thereof, and (b) non-resident alien individuals not engaged in trade or business in the
Philippines are subject to income tax at a final withholding tax rate of 25% of the gross amount.
Cash and property dividends received from a domestic corporation by another domestic
corporation or by resident foreign corporations are not subject to income tax, while those
received by non-resident foreign corporations are generally subject to income tax at a final
withholding tax rate 25%. The 25% income tax rate for dividends paid to a non-resident foreign
corporation may be reduced to a lower rate of 15% if tax sparing applies, which is when the
country of domicile of the non-resident foreign corporation allows a 10% (i.e., the difference
between the regular income tax rate and 15% tax on dividends) credit equivalent for taxes
deemed to have been paid in the Philippines. A non-resident foreign corporation availing of the
tax sparing rate is required under Revenue Memorandum Order (“RMO”) No. 46-20
(Guidelines and Procedures for the Availment of the Reduced Rate of 15% on Intercompany
Dividends Paid by a Domestic Corporation to a Non-resident Foreign Corporation Pursuant to
section 28 (B) (5) (b) of the National Internal Revenue Code of 1997, as Amended, dated
December 23, 2020) to file an application with the BIR for a confirmatory ruling on its
entitlement to the tax sparing rate.
The abovementioned tax rates are without prejudice to applicable preferential tax rates under
income tax treaties in force between the Philippines and the country of domicile of the
non-resident shareholder. Most tax treaties to which the Philippines is a party provide for a
reduced tax rate of 10% or 15% in cases where the dividend arises in the Philippines and is paid
to a resident of the other contracting state. Most income tax treaties also provide that reduced
withholding tax rates shall not apply if the recipient of the dividend, who is a resident of the
other contracting state, carries on business in the Philippines through a permanent
establishment and the holding of the relevant dividend-earning interest is effectively connected
with such permanent establishment. Under RMO 14-2021 (Streamlining the Procedures and
Documents for the Availment of Treaty Benefits dated March 31, 2021), as clarified by
Revenue Memorandum Circular No. 077-21, there are two ways to avail of the preferential tax
rates under tax treaties, i.e., through request for confirmation (“RFC”) or through a tax treaty
relief application (“TTRA”). Accordingly, an RFC is filed by the withholding tax agent (or its
duly authorized representative) when the preferential rate under the tax treaty is applied, while
a TTRA is filed by the non-resident income recipient (or its duly authorized representative)
when the regular income tax rate is applied. If the RFC or TTRA is approved, the Bureau of
– III-17 –
Internal Revenue will issue a Certificate of Entitlement to Treaty Benefit (“COE”). RMO
20-2022 has clarified that taxpayers who were issued with COEs containing tenor allowing the
ruling to be applied to subsequent or future payments (i.e., for recurring transactions such as
the payment of dividends) are no longer required to file an RFC or TTRA every time an income
of similar nature is paid to the same nonresident, as long as the requisites mentioned in the
COE are met.
Transfer taxes (e.g., documentary stamp tax, local transfer tax) may also be payable in addition
to income tax if the dividends declared are property dividends, depending on the type of
property distributed as dividends. Stock dividends distributed pro rata to any holder of shares
of stock outside of local stock exchange are generally not subject to Philippine income tax.
However, the subsequent sale, exchange or disposition of shares in a domestic corporation that
is not listed in the local exchange previously received as stock dividends by the shareholder is
subject to capital gains tax and documentary stamp tax.
Corporate Income Tax
Generally, the Philippine Tax Code, as amended by the Corporate Recovery and Tax Incentives
for Enterprises Act, imposes on a domestic corporation a tax of (i) 30% until June 30, 2020 and
(ii) 25% starting July 1, 2020, on its taxable income from all sources within and outside the
Philippines. If the corporation’s net taxable income does not exceed PHP5,000,000
(approximately US$100,000) and its total assets do not exceed PHP100,000,000
(approximately US$2,000,000) (excluding land on which the corporation’s office, plant and
equipment are situated) during the taxable year for which the tax is imposed, the income tax
rate will be further reduced to 20%. A minimum corporate income tax at the rate of 1% until
June 30, 2023 and 2% thereafter of the gross income of the corporation as of the end of the
taxable year, beginning on the fourth taxable year immediately following the year in which the
corporation commenced its business operations, may be imposed in lieu of the ordinary income
tax if the minimum corporate income tax is greater than the computed ordinary income tax for
the taxable year. Certain passive incomes are subject to final tax rates different from the 25%
rate imposed on ordinary income tax.
Aside from the corporate income tax, entities doing business in the Philippines are generally
liable to pay other taxes, such as value-added tax, documentary stamp tax and local taxes.
LAWS AND REGULATIONS IN RELATION TO OUR BUSINESS IN CHINA
REGULATORY OVERVIEW
Our business operations in China are subject to various laws and regulations. Please find below
an overview of the key laws and regulations relating to our business.
REGULATIONS RELATING TO FOREIGN INVESTMENT
Investment activities in the PRC by foreign investors are principally governed by the
Encouraging Catalog and the Negative List, which were promulgated and are amended from
time to time by the MOFCOM and the NDRC. The Encouraging Catalog and the Negative List
lay out the basic framework for foreign investment in the PRC, classifying businesses into
three categories with regard to foreign investment: “encouraged”, “restricted” and
“prohibited”. Industries not listed in the Encouraging Catalog and the Negative List are
generally deemed as falling into a fourth category “permitted”. The NDRC and the MOFCOM
promulgated the Catalog of Industries for Encouraging Foreign Investment (2022 Version)
(《鼓勵外商投資產業目錄(2022年版)》) (the “2022 Encouraging Catalog”), on October 26,
2022, which became effective on January 1, 2023, and the Special Management Measures
– III-18 –
(Negative List) for the Access of Foreign Investment (2021 Version) (《外商投資准入特別管
理措施(負面清單)(2021年版)》) (the “2021 Negative List”), on December 27, 2021, to replace
the previous encouraging catalog and negative list thereunder.
We are mainly engaged in express delivery services, which could not exclude the possibility
of involving domestic express delivery services of letter in practices. According to the 2021
Negative List, foreign investments in domestic express delivery services of letter are
prohibited. Therefore, we provide domestic express delivery services of letter through our
Consolidated Affiliated Entities in China.
On March 15, 2019, the National People’s Congress (the “PRC NPC”) promulgated the PRC
Foreign Investment Law (《中華人民共和國外商投資法》) (the “FIL”), which came into
effect on January 1, 2020 and replaced the trio of laws regulating foreign investment in the
PRC, namely, the PRC Equity Joint Venture Law (《中華人民共和國中外合資經營企業法》),
the PRC Wholly Foreign-owned Enterprise Law (《中華人民共和國外資企業法》) and the
PRC Cooperative Joint Venture Law (《中華人民共和國中外合作經營企業法》). Its
implementation rules promulgated by the State Council in December 2019 also came into effect
on January 1, 2020. The FIL, by means of legislation, establishes the basic framework for the
access, promotion, protection and administration of foreign investment in view of investment
protection and fair competition.
According to the FIL, foreign investment shall enjoy pre-entry national treatment, except for
those foreign invested entities that operate in industries deemed to be either “restricted” or
“prohibited” in the “negative list.” The FIL provides that foreign invested enterprises operating
in foreign “restricted” or “prohibited” industries will require entry clearance and other
approvals. The FIL does not comment on the concept of “de facto control” or contractual
arrangements with variable interest entities. However, it has a catch-all provision under
definition of “foreign investment” to include investments made by foreign investors in China
through means stipulated by laws or administrative regulations or other methods prescribed by
the State Council. Therefore, it still leaves leeway for future laws, administrative regulations
or provisions to provide for contractual arrangements as a form of foreign investment. In
addition, pursuant to the Measures for Reporting of Information on Foreign Investment (《外
商投資信息報告辦法》), which came into effect on January 1, 2020, a foreign investment
information reporting system shall be established and foreign investors or foreign invested
enterprises shall submit the investment information to competent departments for commerce
through the enterprise registration system and the enterprise credit information publicity
system.
Furthermore, the PRC FIL provides that foreign invested enterprises established according to
the previous laws regulating foreign investment may maintain their structure and corporate
governance within five years after the implementation of the PRC FIL, which means that
foreign invested enterprises may be required to adjust the structure and corporate governance
in accordance with the current PRC Company Law (《中華人民共和國公司法》) and other
laws and regulations governing the corporate governance.
On December 26, 2019, the State Council promulgated the Implementation Rules to the PRC
Foreign Investment Law (《中華人民共和國外商投資法實施條例》), which became effective
on January 1, 2020. The implementation rules further clarified that the state encourages and
promotes foreign investment, protects the lawful rights and interests of foreign investors,
regulates foreign investment administration, continues to optimize foreign investment
environment, and advances a higher-level opening.
– III-19 –
According to the Measures for the Security Review of Foreign Investment (《外商投資安全審
查辦法》) which was promulgated by the NDRC and the MOFCOM on December 19, 2020 and
became effective on January 18, 2021, any foreign investment that has or possibly has an
impact on state security shall be subject to security review in accordance with the provisions
hereof. A foreign investor or a party concerned in China shall take the initiative to make a
declaration to the working mechanism office prior to making the investment in any important
infrastructure, important transportation services and other important fields that concern state
security while obtaining the actual control over the enterprises invested in.
REGULATIONS RELATING TO EXPRESS DELIVERY SERVICES
The PRC Postal Law (《中華人民共和國郵政法》), which was promulgated on December 2,

1986 and was most recently amended on April 24, 2015, sets out the fundamental rules on the
establishment and operation of an express delivery company. Pursuant to the PRC Postal Law,
an enterprise that operates and provides express delivery services must operate its express
delivery business by obtaining a Courier Service Operation Permit. In order to apply for a
Courier Service Operation Permit, a company must meet all the requirements as a corporate
legal person and satisfy certain prerequisites with respect to its service capacity and
management system, and its registered capital must be no less than RMB500,000 to operate
within a province, autonomous region, or municipality directly under the central government,
no less than RMB1,000,000 in the case of cross-provincial operation, and no less than
RMB2,000,000 to operate international express delivery services.
Filing with the postal administrative department is required where an express delivery
company sets up branches. The requirements for the establishment of a branch of express
delivery company are specified in the Administrative Measures for Courier Service Market
(《快遞市場管理辦法》) (the “Courier Market Measures”), which was announced by the
Ministry of Transport in 2013. The Courier Market Measures stipulates that where any express
delivery company establishes its branches or business departments, it must register with the
local counterpart of the SAMR where such branches or business departments are located by
submitting its Courier Service Operation Permit and a list of its branches and, such branches
or business departments must, within 20 days after they obtain their relevant business licenses,
file with the local postal administrative department. The PRC Postal Law stipulates that if an
express delivery company fails to complete such required registration and/or filing with the
relevant governmental authority, it may be ordered to rectify and to pay general fines of no
more than RMB10,000. If the non-compliance situations are severe, a fine ranging from
RMB10,000 to RMB50,000 can be imposed, and the offender may face suspension of its
business operation before completing the rectification. State Postal Bureau and the Ministry of
Transport publicly solicited opinions on Administrative Measures for Courier Service Market
(Revised Draft For Comments) (《快遞市場管理辦法(修訂草案)》(徵求意見稿)》) in January
2022, which provides that an express delivery company must complete the registration with the
local counterpart of SAMR within 20 days for its branches after it filed with the local postal
administrative department for such branches, otherwise the filing with local postal
administrative department will be revoked, while stipulating other operation requirements with
respect to services standards, operation safety, and personal information protection, among
others.
Pursuant to (i) the PRC Postal Law, (ii) the Courier Market Measures, (iii) the Administrative
Measures on Courier Service Operation Permits(《快遞業務經營許可管理辦法》), which was
promulgated on September 1, 2009 and was most recently amended on November 28, 2019, and
(iv) the Interim Regulations on Express Delivery(《快遞暫行條例》), which was promulgated
on March 2, 2018 and was mostly recently amended on March 2, 2019, any entity engaged in
express delivery services must obtain a Courier Service Operation Permit from the State Post
Bureau or its local counterpart and is subject to their supervision and regulation. If an entity
operates express delivery services without obtaining a Courier Service Operation Permit in
accordance with the above measures and regulations, it may be compelled to make corrections,
– III-20 –
subject to the confiscation of its earnings generated from its unlicensed operating express
delivery services, imposed a fine ranging from RMB50,000 to RMB100,000 or where the
circumstances are severe, ranging from RMB100,000 to RMB200,000, and/or ordered to
suspend its business operation for rectification or even cancelation of its Courier Service
Operation Permit. If a permit-holder who ceases its business operation for over six months
within the effective period of the Courier Service Operation Permit, it will be ordered by the
postal administration departments to return the Courier Service Operation Permit, and if it
refuses or fails to do so on time, the postal administration departments shall publicly announce
the annulment of the Courier Service Operation Permit.
Enterprises engaged in express delivery services other than China Post and their wholly owned
and/or controlled enterprises that provide postal services (“Postal Enterprise”) may not
engage in post and mail delivery business which are exclusively operated by Postal Enterprise,
and may not deliver any official documents of state-owned organizations. The express delivery
business must operate within the permitted scope and under the valid terms of the Courier
Service Operation Permit. The Courier Service Operation Permit is valid for 5 years upon its
issuance and comes with an annual reporting obligation. The Circular on Implementing the
Administrative Measures for the Courier Market and Strengthening the Administration of
Courier Service Operations (《關於貫徹實施<快遞市場管理辦法>加強快遞業務經營活動管理
的通知》), which was issued by the State Post Bureau in 2013, further clarifies that the postal
administrative department must examine whether an entity operates express delivery service
within the permitted business scope and geographic scope of its Courier Service Operation
Permit, and the geographic examination must be carried out down to the level of cities that may
be divided into districts. Pursuant to the Courier Market Measures, failure to conduct express
delivery services within the permitted operation scopes would subject the express delivery
company to a correction order by the postal administrative department and a fine ranging from
RMB5,000 to RMB30,000. Moreover, in accordance with the Administrative Measures on
Courier Service Operation Permits, an enterprise engaged in express delivery services must
submit an annual report on its Courier Service Operation Permit with the postal administrative
authority which issued its Courier Service Operation Permit prior to April 30, each year. Where
an express delivery service company fails to submit its annual report to the relevant postal
administrative authority in a timely manner, it may be ordered by the postal administrative
authorities to make correction, and may be subject to a fine of up to RMB10,000. Where an
express delivery service company conceals any facts or commits fraud in its annual report, such
express delivery service company may be ordered by the postal administrative authorities to
make correction and imposed a fine ranging from RMB10,000 to RMB30,000.
Pursuant to the Risk Assessment and Reporting for Major Operation and Management Issues
of Courier Enterprise Headquarters (Trial) (《快遞企業總部重大經營管理事項風險評估和報
告制度(試行)》), which was issued by the State Post Bureau on October 20, 2020, the
headquarters of a courier enterprise must submit a report within 3 days after making a major
decision on business that may cause an impact on the nationwide postal industry, including but
not limited to nationwide price adjustment, capital reduction, dissolution and bankruptcy, to the
State Post Bureau. Where it fails to submit the report to the postal administration authorities
in a timely manner, such courier enterprise may be ordered to make correction, and it may be
subject to a fine ranging from RMB50,000 to RMB100,000 and ordered to suspend business
operation until cancelation of its Courier Service Operation Permit.
In accordance with the Decision of the State Council on Issues concerning Canceling and
Adjusting a Batch of Administrative Examination and Approval Items (《國務院關於取消和調
整一批行政審批項目等事項的決定》) in February 2015, a company operating express delivery
services must apply for and obtain the Courier Service Operation Permit prior to the
application of its business license.
– III-21 –
In accordance with the Courier Market Measures, if any express delivery service is carried out
through franchise, both the franchisees and franchisors must obtain the Courier Service
Operation Permit and any franchisee must run its franchise business within franchisors’
licensed scopes; and the franchisees and franchisors must enter into written agreements
providing the rights and obligations of both parties and the liabilities of both parties in case of
any violation of the legal rights and interests of the users of express delivery services. Any
franchisee or franchisor failing to obtain the Courier Service Operation Permit or any
franchisee failing to run its franchise business within franchisors’ licensed scopes would be
subject to a correction order by the relevant postal administrative authority and a fine ranging
from RMB5,000 to RMB30,000.
Companies engaged in express delivery service must establish and implement a system for the
examination of parcels or articles received for delivery. Pursuant to the PRC Postal Law and
Measures for the Supervision and Administration of Postal Security in the Postal Industry
(《郵政業寄遞安全監督管理辦法》) issued by the Ministry of Transport on January 2, 2020,
which became effective on February 15, 2020, express delivery companies must examine the
postal articles so as to inspect whether the postal articles are prohibited or restricted from
express delivery. Express delivery companies must also examine whether the names, nature and
quantity of the postal articles are consistent with delivery form. According to the PRC Postal
Law, any failure to establish or implement such inspection system, or any unlawful acceptance
or delivery of prohibited or restricted parcels/articles may result in the sanctions to the
in-charge persons bearing direct responsibility and other persons subject to direct liability of
the express delivery companies and the suspension of the company’s business operation for
rectification or even cancelation of its Courier Service Operation Permit, being compelled to
make corrections and being imposed a fine up to RMB5,000.
According to the Interim Regulations on Express Delivery, express delivery operators shall
obtain the Courier Service Operation Permit for express delivery. Express delivery operators
and their branches may open express delivery terminal outlets which are required to file with
the local post administrations in the places where they are located for record within 20 days
from the date of opening their express delivery terminal outlets. The delivery terminal outlets
are not required to obtain a business license. Where an express delivery service operator fails
to file with the local post administrations for opening their express delivery terminal outlets,
such express delivery service company may be compelled to make corrections, imposed a fine
up to RMB50,000 and/or ordered to suspend business for rectification. In case an express
delivery service company intends to suspend operating express delivery services, it shall (i)
make public announcement ten days in advance, (ii) submit a written notice to the postal
administrative departments, (iii) return the Courier Service Operation Permit and (iv) make
proper arrangement on undelivered express parcels. Failure to comply with such requirements
may be compelled to make corrections, imposed a fine up to RMB50,000 and/or ordered to
suspend business for rectification. According to the Interim Regulations on Express Delivery,
express delivery operators shall also verify the identity of senders and register their identity
information when receiving express parcels. Where senders refuse to furnish their identity
information or furnish false identity information, express delivery operators shall not receive
their express parcels. According to the Interim Regulations on Express Delivery, the PRC
Postal Law and the Anti-Terrorism Law (《反恐怖主義法》), if any express delivery operator
fails to verify the identity of senders and registers their identity information, or identifies that
the senders provide false identity information, but still receives the express parcels, such
express delivery operator may be subject to a fine ranging from RMB100,000 to RMB500,000
or ordered to suspend business operation until cancelation of its Courier Service Operation
Permit, and the personnel directly in charge and other persons directly liable may be subject
to a fine ranging up to RMB100,000. The Interim Regulations on Express Delivery also
indicates that two or more express delivery operator may use a unified trademark, corporate
– III-22 –
name or express waybill to conduct the express delivery business. The express delivery
operators shall enter into a written agreement to define their respective rights and obligations,
carry out unified management of service quality, safety guarantee and business process, and
provide unified express mail tracking, inquiry and complaint handling services for clients.
Where the legitimate rights and interests of any client have been jeopardized due to the delay,
missing, damage or shortage of express parcels, the client may request the express delivery
operator to which the trademark, corporate name or express waybill belongs to offer
compensation, or request the actual express delivery provider to pay compensation.
Pursuant to the E-commerce Law of the PRC (《中華人民共和國電子商務法》) promulgated

by Standing Committee of the National People’s Congress (the “SCNPC”), which took effect
on January 1, 2019, e-commerce businesses are subject to certain requirements, including but
not limited to the following: while handing over commodities, express logistics service
providers shall remind consignees to examine the commodities immediately on the spot; where
the commodities are received by others for consignees, such providers shall obtain the consent
of consignees. Express logistics service providers shall use environmental-friendly packaging
materials in accordance with the relevant provisions in an effort to reduce the consumption of
and recycle packaging materials. While offering express logistics services, the providers
thereof may agree to be entrusted by e-commerce operators to collect payments for goods. The
operation of our business is subject to E-commerce Law of the PRC. If our express delivery
services are not in compliance with the law, we may be required to make certain rectifications.
In accordance with the Measures for Administration of Packaging of Mails and Express Mails
(《郵件快件包裝管理辦法》), which was promulgated by the Ministry of Transport on
February 8, 2021 and has come into effect on March 12, 2021, express delivery companies shall
give priority to recyclable materials for packaging mails while optimizing the design of express
packaging and reducing the use of filling materials, and may not use non-degradable plastic
materials. Where an express delivery company uses packaging that is not in compliance with
the law, or uses a toxic substance as filling material, it would be subject to a correction order
by the postal administration authority; if the express delivery company fails to make
corrections within a time limit, it would be fined from RMB5,000 to RMB10,000. Express
delivery companies shall formulate and revise their own packaging operation regulations, and
make filings in accordance with the regulations of the postal administration authorities of the
State Council. If an express delivery company fails to formulate packaging operation
regulations or to file with the State Council, such express delivery company may be compelled
to make corrections with a time limit, and be imposed a fine ranging from RMB3,000 to
RMB10,000.
On August 6, 2021, nine PRC governmental and regulatory agencies, including the MOFCOM,
the NDRC and the Ministry of Transport, jointly issued the Special Action Plan for the
High-Quality Development of Commercial Courier (《商貿物流高質量發展專項行動計劃
(2021-2025年)》) (the “Plan”). The Plan proposes to, among others, support and encourage
qualified express delivery companies to optimize and expand its business scale through
mergers, reorganizations, listing and financing. It also calls for further developing courier
industry through technological innovation and business model innovation. The Plan aims to
build an efficient urban-rural distribution system and to promote the integration of regional
express delivery companies during the five-year plan period.
– III-23 –
ROAD TRANSPORTATION OPERATION PERMIT
Pursuant to the Regulations on Road Transportation of the PRC (《中華人民共和國道路運輸

條例》) promulgated by the State Council in April 2004 and most recently amended in
September 2022, and the Provisions on Administration of Road Freight Transportation and
Stations (Sites) (《道路貨物運輸及站場管理規定》) issued by the Ministry of Transport in
June 2005 and most recently amended in June 2019 (the “Road Freight Provisions”), the
business operations of road freight transportation refer to commercial road freight
transportation activities that provide public services. The road freight transportation includes
general road freight transportation, special road freight transportation, road transportation of
large articles, and road transportation of hazardous cargos. Special road freight transportation
refers to freight transportation using special vehicles with containers, refrigeration equipment,
or tank containers, etc. The Road Freight Provisions set forth detailed requirements with
respect to vehicles and drivers.
Under the Road Freight Provisions, anyone engaged in the business of operating road freight
transportation must obtain a Road Transportation Operation Permit from the local county-level
road transportation administrative bureau, and each vehicle used for road freight transportation
must have a Road Transportation Certificate from the same authority. The incorporation of a
subsidiary of road freight transportation operator that intends to engage in road transportation
business is subject to the same approval procedure. If it intends to establish a branch, it should
file with the local road transportation administrative bureau where the branch is to be
established. Pursuant to the Notice on the Cancelation of the Road Transportation Operation
Permit and the Driver Qualification Certificate for Ordinary Freight Vehicles with a Total Mass
of 4.5 Tons or Less (《交通運輸部辦公廳關於取消總質量4.5噸及以下普通貨運車輛道路運輸
證和駕駛員從業資格證的通知》) promulgated by the Ministry of Transport, which took effect
on January 1, 2019, local transportation management departments will no longer issue road
transportation operation permit for ordinary freight vehicles with a total mass of 4.5 tons or
less, and shall not impose administrative penalties on such vehicles and drivers for the reasons
of operating without permits and driving freight transportation vehicles without corresponding
qualification certificates.
Although the Road Transportation Operation Permits have no limitation with respect to
geographical scope, several provincial governments in China, including Shanghai and Beijing,
promulgated local rules on administration of road transportation, stipulating that permitted
operators of road freight transportation registered in other provinces should also make
record-filing with the local road transportation administrative bureau where they carry out its
business.
REGULATIONS RELATING TO CARGO VEHICLES
Pursuant to the Administrative Provisions concerning the Running of Cargo Vehicles with
Out-of-Gage Goods (《超限運輸車輛行駛公路管理規定》) promulgated by the PRC Ministry
of Transport, which took effect on September 21, 2016 and was most recently amended on
August 11, 2021, cargo vehicles running on public roads shall not carry cargo weighing more
than the limits prescribed by this regulation and their dimensions shall not exceed those as set
forth by the same regulation. Vehicle operators who violate this regulation may be subject to
a fine of up to RMB30,000 for each violation. In the event of repeated violations, the regulatory
authority may suspend the operating license of the vehicle operator and/or revoke the business
operation registration of the relevant vehicle. In the event more than 10% of the total vehicles
of any road transportation enterprise are not in compliance with this regulation in any year,
such road transportation enterprise shall suspend its business for rectification and its road
transportation license may be revoked.
– III-24 –
The operation of our truck fleet is subject to this regulation. If our trucks are not in compliance
with this regulation, we may be required to modify such trucks to reduce their length or
purchase new ones to replace them. Otherwise, we may be subject to penalties under this
regulation if we continue to operate those trucks that exceed the limits set forth in the
regulation. See “Risk Factors – Risks Related to Our Business and Industry – Our business and
the business of our network partners are subject to a broad range of laws and regulations.”
REGULATIONS RELATING TO INTERNATIONAL FREIGHT FORWARDING

BUSINESS
Administrative Provisions on International Freight Forwarders of the PRC (《中華人民共和國

國際貨物運輸代理業管理規定》) promulgated in 1995 and its detailed rules issued in 2004
regulate the business of international freight forwarding. According to the provisions and its
detailed rules, the minimum amount of registered capital must be RMB5 million for an
international freight forwarder by sea, RMB3 million for an international freight forwarder by
air and RMB2 million for an international freight forwarder by land or for an entity operating
international express delivery services. An international freight forwarder must, when each
time applying for setting up a branch, increase its registered capital (or the excess amount over
its minimum registered capital) by RMB500,000. Under the Measures on Filing of
International Freight Forwarders (Interim) (《國際貨運代理企業備案(暫行)辦法》) announced
in March 2005 and amended in August 2016, all international freight forwarders and their
branches registered with the SAMR must be filed with the MOFCOM or its authorized organs.
REGULATIONS RELATING TO COMMERCIAL FRANCHISING
Pursuant to the Administrative Regulations on Commercial Franchising Operations (《商業特

許經營管理條例》) promulgated by the State Council on February 6, 2007, which became
effective on May 1, 2007, and the Administrative Measures on the Record Filing of
Commercial Franchises (《商業特許經營備案管理辦法》) issued by MOFCOM on December
12, 2011, which became effective on February 1, 2012, collectively the Regulations and
Provisions on Commercial Franchising, commercial franchising refers to the business activities
where an enterprise that possesses the registered trademarks, enterprise logos, patents,
proprietary technology or any other business resources allows such business resources to be
used by another business operator through contract and the franchisee follows the uniform
business model to conduct business operations and pay franchising fees to the franchisor
according to the contract. We and our network partners are therefore subject to regulations on
commercial franchising. Under the Regulations and Provisions on Commercial Franchising,
within 15 days of the first conclusion of franchising contract, the franchisor must carry out
record-filing with MOFCOM or its local counterparts and must report the status of its
franchising contracts in the previous year in the first quarter of each year after record-filing.
The MOFCOM announces the names of franchisors who have completed filing on the
government website and makes prompt updates. If the franchisor fails to comply with these
Regulations and Provisions on Commercial Franchising, the MOFCOM or its local
counterparts have the discretion to take administrative measures against the franchisor,
including fines and public announcements. The Regulations and Provisions on Commercial
Franchising also sets forth requirements on the contents of franchising contracts. J&T Express
China has signed franchising contracts under the Regulations and Provisions on Commercial
Franchising with its direct network partners. If we are deemed as a franchisor who fails to
comply with the stipulations of filing with the competent commerce authority, a fine ranging
from RMB10,000 to RMB100,000 may be imposed.
– III-25 –
REGULATIONS RELATING TO PERSONAL INFORMATION SECURITY AND

CONSUMER PROTECTION
The Administrative Provisions on the Security of Personal Information of Express Service

Users (《寄遞服務用戶個人信息安全管理規定》), promulgated by the State Post Bureau on
March 26, 2014 and amended on February 13, 2023, provides for the protection of the personal
information of users of express or express delivery services, and the supervision on the express
operations of postal enterprises and express delivery companies. In accordance with these
provisions, the state postal administrative department and its local counterparts are the
supervising and administering authority responsible for the security of the personal
information of users of express or express delivery services, and postal enterprises and express
delivery companies must establish and refine systems and measures for the security of such
information. Specifically, express delivery companies must enter into confidentiality
agreements with its employees regarding the information of its clients or users to specify
confidentiality obligations and liabilities for violation thereof. Where express delivery
companies are entrusted by operators engaged in online shopping, TV shopping, mail-order and
other businesses to provide express delivery services, such express delivery companies must
enter into agreements with the said principals agreeing upon provisions safeguarding the
security of information of users of express delivery services. Courier companies operating
through franchise are further required to formulate provisions on the security of information of
users of express delivery services in franchising contracts and clarify the security
responsibilities between franchisor and franchisee. A courier company and its employees
causing damages to the users of express delivery services by divulging the users’ information
are expected to bear compensation liabilities. If a courier company is found to unlawfully
furnish the information of users of express delivery services, the company and its employees
are subject to administrative liabilities or even criminal penalties. A user of express delivery
services may further seek remedies by following the Measures on Settling the Complaints of
the Postal Users (《郵政業用戶申訴處理辦法》) issued by State Post Bureau, which took
effect on October 1, 2020. The Postal Users Complaints Settling Center implements the regime
of mediation to handle the complaints from users on the quality of the express delivery
services. According to the Interim Regulations on Express Delivery, an express delivery
service company shall not sell, reveal or illegally provide any information of client during the
provision of express services. In case the information of client is revealed or may be revealed,
the express delivery service company shall take remedial measures immediately and report to
the local post administrations. Failure to comply with such requirement may be subject to
penalties including a fine ranging from RMB10,000 to RMB100,000, suspension of business
for rectification or revoke of its Courier Service Operation Permit.
– III-26 –
REGULATIONS RELATING TO DATA SECURITY
On July 1, 2015, the SCNPC issued the National Security Law of the PRC (《中華人民共和
國國家安全法》), which came into effect on the same day, pursuant to which the state shall
safeguard the sovereignty, security and cybersecurity development interests of the state, and
that the state shall establish a national security review and supervision system to review, among
other things, foreign investment, key technologies, internet and information technology
products and services, and other important activities that are likely to impact the national
security of the PRC.
The Cybersecurity Law of the PRC (《中華人民共和國網絡安全法》), promulgated by the

SCNCP on November 7, 2016 and became effective on June 1, 2017, requires network
operators to abide by the principles of legality, appropriateness and necessity when collecting
or using personal data. Network operators are prohibited from leaking, tampering with or
damaging collected personal data, and they should adopt technical and other necessary
measures to ensure security of personal data, safeguard against information leakage, damage
or loss, improve information management with respect to data published by users and establish
complaint and reporting mechanisms with respect to network data security.
On June 10, 2021, the SCNPC issued the Data Security Law of the PRC (《中華人民共和國
數據安全法》) (the “Data Security Law”), which came into effect on September 1, 2021, to
regulate data processing activities and security supervision in the PRC. The Data Security Law
clarifies the scope of data to cover a wide range of information records generated from all
aspects of production, operation and management of government affairs and enterprises in the
process of the gradual transformation of digitalization, and requires that data collection shall
be conducted in a legitimate and proper manner, and theft or illegal collection of data is not
permitted. Data processors shall establish and improve the whole-process data security
management rules, organize and implement data security trainings as well as take appropriate
technical measures and other necessary measures to protect data security. In addition, data
processing activities shall be conducted on the basis of the graded protection system for
cybersecurity. Monitoring of the data processing activities shall be strengthened, and remedial
measures shall be taken immediately in case of discovery of risks regarding data security
related defects or bugs. In case of data security incidents, responding measures shall be taken
immediately, and disclosure to users and report to the competent authorities shall be made in
a timely manner.
On August 20, 2021, the SCNPC promulgated the PRC Personal Information Protection Law
(《中華人民共和國個人信息保護法》) (the “PIPL”), which came into effect on November 1,
2021. The PIPL further accentuates the importance of processors’ obligations and
responsibilities for personal information protection and sets out the basic rules for processing
personal information. It stipulates an expanded definition of personal information, providing a
long-arm jurisdiction in cross-border scenarios, emphasizing individual rights, and prohibiting
rampant infringement of personal information. The information processor may process
sensitive personal information only when the information processor has specific purpose and
sufficient necessity, and under circumstances where strict protection measures are taken.
On November 14, 2021, the CAC publicly solicited opinions on the Regulations on the
Administration of Cyber Data Security (Draft for Comments) (《網絡數據安全管理條例(徵求
意見稿)》) (the “Draft Data Security Regulations”). According to the Draft Data Security
Regulations, data processors shall, in accordance with relevant state provisions, apply for cyber
security review when carrying the following activities: (i) the merger, reorganization or
separation of Internet platform operators that have acquired a large number of data resources
related to national security, economic development or public interests, which affects or may
– III-27 –
affect national security; (ii) data processors that handle the personal information of more than
one million people intends to be listed abroad; (iii) the data processor intends to be listed in
Hong Kong, which affects or may affect national security; and (iv) other data processing
activities that affect or may affect national security. However, the Draft Data Security
Regulations provides no further explanation or interpretation for “affects or may affect national
security.” In addition, the Draft Data Security Regulations also regulate other specific
requirements in respect of the data processing activities conducted by data processors through
internet in view of personal data protection, important data safety, data cross-broader safety
management and obligations of internet platform operators.
On December 28, 2021, the CAC jointly with relevant authorities issued the Measures for
Cybersecurity Review (《網絡安全審查辦法》) (the “Cybersecurity Review Measures”),
which became effective on February 15, 2022. Pursuant to the Cybersecurity Review Measures,
the member organizations of the working mechanism for cybersecurity review can initiate
cybersecurity review if they consider national security is or may be affected by any network
products or services, or data processing activities.
On July 7, 2022, the CAC promulgated the Data Outbound Transfer Security Assessment
Measures (《數據出境安全評估辦法》) (the “Security Assessment Measures”), which
became effective on September 1, 2022. The Security Assessment Measures provides that,
among others, data processors who transfer important data abroad shall apply to competent
authorities for security assessment where (1) a critical information infrastructure operator and
personal information processor that has processed personal information of more than one
million people, transferring personal information abroad; (2) a data processor who has
provided personal information of 100,000 individuals or sensitive personal information of
10,000 individuals to overseas recipients, in each case as calculated cumulatively, since
January 1 of the last year; or (3) other circumstances where the security assessment of data
cross-border transfer is required as prescribed by the CAC.
On February 24, 2023, the CAC published the Standard Contract Measures which became
effective on June 1, 2023, with a built-in six-month grace period (i.e., up to December 1, 2023).
Under the Standard Contract Measures, handlers of PI that do not meet the threshold
requirements under the Security Assessment Measures and have not obtained a PI protection
certification from a qualified certification institution designated by the CAC, but that
nevertheless engage in the transfer of PI out of China based on contractual arrangements must
(1) execute standard form contracts that strictly comply with the “Standard Contract” published
by the CAC with the overseas recipients of the PI that the PI handlers transfer out of China;
(2) complete PI protection impact assessments; and (3) file the relevant standard contracts and
PI protection impact assessments to their provincial CAC branch within 10 business days of the
taking effect of each standard contract.
REGULATIONS RELATING TO PRICING
In China, the prices of a few numbers of products and services are set by the government.
According to Pricing Law of the PRC (《中華人民共和國價格法》) (the “Pricing Law”)
promulgated on December 29, 1997, which became effective on May 1, 1998, operators must
indicate the service items, pricing structures and other related standards clearly. Operators may
not charge any fees that are not explicitly indicated. Operators must not commit unlawful
pricing activities, such as colluding with others to manipulate the market price, using false or
misleading prices to deceive consumers, or conducting price discrimination against other
business operators. Failure to comply with the Pricing Law may subject business operators to
– III-28 –
administrative sanctions such as warning, ceasing unlawful activities, requiring compensation,

confiscating illegal gains, and fines. The business operators may be ordered to suspend
business for rectification or having their business licenses revoked if the violations are severe.
REGULATIONS RELATING TO LEASING
We lease properties for our offices, sorting centers, pickup and delivery outlets and other
facilities. Pursuant to the Law on Administration of Urban Real Estate of the PRC (《中華人
民共和國城市房地產管理法》) which took effect in January 1995 with the latest amendment
on August 26, 2019, which became effective on January 1, 2020, lessors and lessees are
required to enter into a written lease contract, containing such provisions as the term of the
lease, the use of the premises, rental price, liability for repair, and other rights and obligations
of both parties. Both lessor and lessee are also required to file for registration and record the
lease contract with the real estate administration department. Pursuant to implementing rules
stipulated by certain provinces or cities, if the lessor and lessee fail to go through the
registration procedures, both lessor and lessee may be subject to fines.
According to the PRC Civil Code (《中華人民共和國民法典》) which took effect on January
1, 2021, the lessee may sublease the leased premises to a third party, subject to the consent of
the lessor. Where the lessee subleases the premises, the lease contract between the lessee and
the lessor remains valid. The lessor is entitled to terminate the lease contract if the lessee
subleases the premises without the consent of the lessor. In addition, if the ownership of the
leased premises changes during the lessee’s possession in accordance with the terms of the
lease contract, the validity of the lease contract shall not be affected.
Pursuant to the PRC Civil Code, if the mortgaged property has been leased and transferred for
occupation prior to the establishment of the mortgage right, the original tenancy shall not be
affected by such mortgage right. According to the Interpretation of the Supreme People’s Court
on Several Issues concerning the Application of Law in the Trial of Cases about Disputes Over
Lease Contracts on Urban Buildings (2020 version) (《最高人民法院關於審理城鎮房屋租賃合
同糾紛案件具體應用法律若干問題的解釋(2020修正)》), which took effect on January 1,
2021, if the ownership of the leased premises changes during lessee’s possession in accordance
with the terms of the lease contract, and the leasee requests the assignee to continue to perform
the original lease contract, the PRC court shall support it, except that the mortgage right has
been established before the lease of the leased premises and the ownership changes due to the
mortgagee’s realization of the mortgage right.
REGULATIONS RELATING TO FIRE SECURITY
Pursuant to the Fire Protection Law of the PRC (《中華人民共和國消防法》) which was latest
revised on April 29, 2021, and the Measure for Supervision on and Inspection of Fire
Protection (《消防監督檢查規定》) amended in 2012, enterprises shall implement a fire safety
accountability system, install firefighting facilities and equipment, conduct a yearly
comprehensive inspection of firefighting facilities and keep the inspection records for future
reference, and perform other fire safety measures as well as other fire safety and protection
responsibilities. Pursuant to Interim Provisions on the Administration of Fire Protection Design
Review and Final Inspection of Construction Projects (《建設工程消防設計審查驗收管理暫行
規定》) (“Interim Provisions Regarding Fire Protection”) effective on June 1, 2020, a
special construction project as stipulated in the Interim Provisions Regarding Fire Protection
shall be subject to fire protection design review before such project commenced construction
and shall be subject to fire protection inspection before such project was put into use.
Constructions projects other than a special construction project shall be subject to fire
– III-29 –
protection inspection recordation, and the competent department of housing and urban-rural
development shall conduct a random fire protection inspection thereof. If the project fails to
pass the random fire protection inspection, such project shall cease to be used.
REGULATIONS RELATING TO TAXATION
Enterprise Income Tax
On March 16, 2007, the PRC NPC promulgated the Enterprise Income Tax Law of the PRC
(《中華人民共和國企業所得稅法》) which was latest amended on December 29, 2018, and the
State Council enacted the Regulations for the Implementation of the Law on Enterprise Income
Tax of the PRC (《中華人民共和國企業所得稅法實施條例》) which were latest amended on
April 23, 2019 (collectively, the “EIT Law”). According to the EIT Law, taxpayers consist of
resident enterprises and non-resident enterprises. Resident enterprises are defined as
enterprises that are established in China in accordance with PRC laws, or that are established
in accordance with the laws of foreign countries but whose actual or de facto control is
administered from within the PRC. Non-resident enterprises are defined as enterprises that are
set up in accordance with the laws of foreign countries and whose actual administration is
conducted outside the PRC, but have established institutions or premises in the PRC, or have
no such established institutions or premises but have income generated from inside the PRC.
Under the EIT Law and relevant implementing regulations, a uniform corporate income tax rate
of 25% is applicable. However, if non-resident enterprises have not formed permanent
establishments or premises in the PRC, or if they have formed permanent establishment
institutions or premises in the PRC but there is no actual relationship between the relevant
income derived in the PRC and the established institutions or premises set up by them, the
enterprise income tax is, in that case, set at the rate of 10% for their income sourced from
inside the PRC.
Value-Added Tax
Pursuant to the Provisional Regulations of the PRC on Value-Added Tax (《中華人民共和國

增值稅暫行條例》), which was promulgated by the State Council on December 13, 1993 and
latest amended on November 19, 2017, and the Implementation Rules for the Provisional
Regulations of the PRC on Value-Added Tax (《中華人民共和國增值稅暫行條例實施細則》),
which was promulgated by the MOFCOM on December 25, 1993 and latest as amended on
October 28, 2011, and became effective on November 1, 2011, entities or individuals engaged
in the services are required to pay a value-added tax (“VAT”).
On March 20, 2019, the MOFCOM, the SAT and the General Administration of Customs jointly
issued the Announcement on Policies for Deepening the VAT Reform (《關於深化增值稅改革
有關政策的公告》) (the “Announcement 39”), to further slash value-added tax rates.
According to the Announcement 39, (i) for general VAT payers’ sales activities or imports that
are subject to VAT at an existing applicable rate of 16% or 10%, the applicable VAT rate is
adjusted to 13% or 9% respectively; (ii) for the agricultural products purchased by taxpayers
to which an existing 10% deduction rate is applicable, the deduction rate is adjusted to 9%; (iii)
for the agricultural products purchased by taxpayers for production or commissioned
processing, which are subject to VAT at 13%, the input VAT will be calculated at a 10%
deduction rate; (iv) for the exportation of goods or labor services that are subject to VAT at
16%, with the applicable export refund at the same rate, the export refund rate is adjusted to
13%; and (v) for the exportation of goods or cross-border taxable activities that are subject to
VAT at 10%, with the export refund at the same rate, the export refund rate is adjusted to 9%.
The Announcement 39 came into effect on April 1, 2019 and shall prevail in case of any
conflict with existing provisions.
– III-30 –
Dividend Withholding Tax
Pursuant to the Enterprise Income Tax Law of the PRC and its implementation rules, if a
non-resident enterprise has not set up an organization or establishment in the PRC, or has set
up an organization or establishment but the income derived has no actual connection with such
organization or establishment, it will be subject to a withholding tax on its PRC-sourced
income at a rate of 10%. Pursuant to the Arrangement between Mainland China and the Hong
Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on
Income (《內地和香港特別行政區關於對所得避免雙重徵稅和防止偷漏稅的安排》), the
withholding tax rate in respect to the payment of dividends by a PRC enterprise to a Hong
Kong enterprise is reduced to 5% from a standard rate of 10% if the Hong Kong enterprise
directly holds at least 25% of the PRC enterprise.
Pursuant to the Notice of the State Administration of Taxation on the Issues concerning the
Application of the Dividend Clauses of Tax Agreements (《國家稅務總局關於執行稅收協定股
息條款有關問題的通知》), if the relevant PRC tax authorities determine, in their discretion,
that a company benefits from such reduced income tax rate due to a structure or arrangement
that is primarily tax-driven, such PRC tax authorities may adjust the preferential tax treatment.
Furthermore, the Administrative Measures for Non-Resident Taxpayer to Enjoy Treatments
under Tax Treaties (《非居民納稅人享受稅收協定待遇管理辦法》) (the “SAT Circular 60”),
which became effective in November 2015, requires that non-resident enterprises which satisfy
the criteria for entitlement to tax treaty benefits may, at the time of tax declaration or
withholding declaration through a withholding agent, enjoy the tax treaty benefits, and be
subject to ongoing administration by the tax authorities. In the case where the non-resident
enterprises do not apply to the withholding agent to claim the tax treaty benefits, or the
materials and the information stated in the relevant reports and statements provided to the
withholding agent do not satisfy the criteria for entitlement to tax treaty benefits, the
withholding agent should withhold tax pursuant to the provisions of the PRC tax laws. The SAT
issued the Announcement of State Taxation Administration on Promulgation of the
Administrative Measures on Non-resident Taxpayers Enjoying Treaty Benefits (國家稅務總局
關於發佈《非居民納稅人享受協定待遇管理辦法》的公告) (the “SAT Circular 35”) on
October 14, 2019, which became effective on January 1, 2020. The SAT Circular 35 further
simplified the procedures for enjoying treaty benefits and replaced the SAT Circular 60.
According to the SAT Circular 35, no approvals from the tax authorities are required for a
non-resident taxpayer to enjoy treaty benefits, where a non-resident taxpayer self-assesses and
concludes that it satisfies the criteria for claiming treaty benefits, it may enjoy treaty benefits
at the time of tax declaration or at the time of withholding through the withholding agent, but
it shall gather and retain the relevant materials as required for future inspection, and accept
follow-up administration by the tax authorities. There are also other conditions for enjoying the
reduced withholding tax rate according to other relevant tax rules and regulations. According
to the Circular of the State Administration of Taxation on Several Issues regarding the
“Beneficial Owner” in Tax Treaties (《國家稅務總局關於稅收協定中“受益所有人”有關問題的
公告》), which was issued on February 3, 2018 by the SAT, effective as of April 1, 2018, when
determining the applicant’s status of the “beneficial owner” regarding tax treatments in
connection with dividends, interests or royalties in the tax treaties, several factors, including
without limitation, whether the applicant is obligated to pay more than 50% of its income in
twelve months to residents in third country or region, whether the business operated by the
applicant constitutes the actual business activities, and whether the counterparty country or
region to the tax treaties does not levy any tax or grant tax exemption on relevant incomes or
levy tax at an extremely low rate, will be taken into account, and it will be analyzed according
to the actual circumstances of the specific cases. This circular further provides that applicants
who intend to prove his or her status of the “beneficial owner” shall submit the relevant
documents to the relevant tax bureau according to the Administrative Measures for Non-
Resident Taxpayers to Enjoy Treatments under Tax Treaties.
– III-31 –
REGULATIONS RELATING TO INTELLECTUAL PROPERTY RIGHTS
The PRC has adopted comprehensive legislation governing intellectual property rights,
including copyrights, patents, trademarks and domain names.
Copyright
Copyright in the PRC, including copyrighted computer software, is principally protected under
the Copyright Law of the PRC (《中華人民共和國著作權法》), which was most recently
amended on November 11, 2020 and became effective on June 1, 2021 (the “Copyright Law”),
and its implementation rules. According to the Copyright Law, the term of protection for
copyrighted computer software shall be 50 years. Reproducing, distributing, performing,
projecting, broadcasting or compiling a work or communicating the same to the public via an
information network without permission from the owner of the copyright therein, unless
otherwise provided in the Copyright Law, shall constitute infringements of copyrights. The
infringer shall, according to the circumstances of the case, undertake to cease the infringement,
take remedial action, and offer an apology, pay damages, etc.
Patent
The Patent Law of the PRC (《中華人民共和國專利法》) promulgated by the SCNPC on

March 12, 1984, which was most recently amended on October 17, 2020 and became effective
on June 1, 2021, provides for three types of patents, “invention”, “utility” and “design”. To be
patentable, invention or utility models must meet three criteria: novelty, inventiveness and
practicability. The National Intellectual Property Administration is responsible for examining
and approving patent applications.
Trademark
The Trademark Law of the PRC (《中華人民共和國商標法》) promulgated by the SCNPC on

August 23, 1982 with the latest amendment being effective on November 1, 2019, and its
implementation rules promulgated by the State Council on August 3, 2002 with the latest
amendment being effective on May 1, 2014, protect registered trademarks. The Trademark
Office of National Intellectual Property Administration is responsible for the registration and
administration of trademarks throughout the PRC. The Trademark Law has adopted a
“first-to-file” principle with respect to trademark registration. A registration application for a
trademark that is identical or similar to another trademark which has already been registered
or given preliminary examination may be rejected. Trademark registration is effective for a
renewable ten-year period, unless otherwise revoked.
Domain Name
Domain names are protected under the Administrative Measures on the Internet Domain Names
(《互聯網域名管理辦法》), which was promulgated by the MIIT on August 24, 2017 and
became effective on November 1, 2017. The MIIT is the major regulatory body responsible for
the administration of the PRC internet domain names, under supervision of which the China
Internet Network Information Center (the “CINIC”) is responsible for the daily administration
of.cn domain names and Chinese domain names. CNNIC adopts the “first to file” principle
with respect to the registration of domain names. In November 2017, the MIIT promulgated the
Notice of the Ministry of Industry and Information Technology on Regulating the Use of
Domain Names in Providing Internet-based Information Services (《工業和信息化部關於規範
互聯網信息服務使用域名的通知》), which became effective on January 1, 2018. Pursuant to
the notice, the domain name used by an internet-based information service provider in
– III-32 –
providing internet-based information services must be registered and owned by such provider
in accordance with the law. If the internet-based information service provider is an entity, the
domain name registrant must be the entity (or any of the entity’s shareholders), or the entity’s
principal or senior manager.
REGULATIONS RELATING TO FOREIGN EXCHANGE
The principal regulations governing foreign currency exchange in China are the Foreign
Exchange Administration Regulations of the PRC (《中華人民共和國外匯管理條例》), which
was promulgated by the State Council on January 29, 1996 and was latest amended on August
5, 2008. Pursuant to these regulations and other PRC rules and regulations on currency
conversion, Renminbi is freely convertible for payments of current account items, such as trade
and service-related foreign exchange transactions and dividend payments, but not freely
convertible for capital account items, such as direct investment, loan or investment in securities
outside China unless prior approval of the SAFE or its local counterpart is obtained.
On February 13, 2015, SAFE promulgated the Notice on Further Simplifying and Improving
the Direct Investment-related Foreign Exchange Administration Policies (《關於進一步簡化和
改進直接投資外匯管理政策的通知》), according to which, entities and individuals may apply
for such foreign exchange registrations from qualified banks. The qualified banks, under the
supervision of SAFE, may directly review the applications and conduct the registration. On
March 30, 2015, SAFE promulgated the Circular on Reforming the Management Approach
regarding the Settlement of Foreign Exchange Capital of Foreign-invested Enterprise (《關於
改革外商投資企業外匯資本金結匯管理方式的通知》) (the “Circular 19”). According to
Circular 19, the foreign exchange capital of foreign-invested enterprises shall be subject to the
Discretionary Foreign Exchange Settlement, which means that the foreign exchange capital in
the capital account of a foreign-invested enterprise for which the rights and interests of
monetary contribution have been confirmed by the local foreign exchange bureau (or the
book-entry registration of monetary contribution by the banks) can be settled at the banks
based on the actual operational needs of the foreign-invested enterprise, and if a foreign-
invested enterprise needs to make further payment from such account, it still needs to provide
supporting documents and proceed with the review process with the banks. Furthermore,
Circular 19 stipulates that the use of capital by foreign-invested enterprises shall follow the
principles of authenticity and self-use within the business scope of enterprises. The capital of
a foreign-invested enterprise and capital in Renminbi obtained by the foreign-invested
enterprise from foreign exchange settlement shall not be used for the following purposes: (i)
directly or indirectly used for payments beyond the business scope of the enterprises or
payments as prohibited by relevant laws and regulations; (ii) directly or indirectly used for
investment in securities unless otherwise provided by the relevant laws and regulations; (iii)
directly or indirectly used for granting entrust loans in Renminbi (unless permitted by the scope
of business), repaying inter- enterprise borrowings (including advances by the third-party) or
repaying the bank loans in Renminbi that have been sub-lent to third parties; or (iv) directly
or indirectly used for expenses related to the purchase of real estate that is not for self-use
(except for the foreign-invested real estate enterprises).
The Circular of Further Simplifying and Improving Foreign Exchange Administration Policies
on Foreign Direct Investment (《國家外匯管理局關於進一步簡化和改進直接投資外匯管理政
策的通知》) (the “SAFE Circular 13”) which became effective on June 1, 2015 and was
amended on December 30, 2019, cancels the administrative approvals of foreign exchange
registration of direct domestic investment and direct overseas investment and simplifies the
procedure of foreign exchange-related registration. Pursuant to SAFE Circular 13, investors
should register with banks for direct domestic investment and direct overseas investment.
– III-33 –
The Circular on Reforming and Standardizing the Foreign Exchange Settlement Management
Policy of Capital Account (《關於改革和規範資本項目結匯管理政策的通知》) (the “Circular
16”), was promulgated by SAFE on June 9, 2016. Pursuant to Circular 16, enterprises
registered in the PRC may also convert their foreign debts from foreign currency to Renminbi
on a self-discretionary basis. Circular 16 reiterates the principle that Renminbi converted from
foreign currency-denominated capital of a company may not be directly or indirectly used for
purposes beyond its business scope or prohibited by PRC laws, while such converted Renminbi
shall not be provided as loans to its non-affiliated entities.
On January 26, 2017, SAFE promulgated the Circular on Further Improving Reform of Foreign
Exchange Administration and Optimizing Genuineness and Compliance Verification (《國家外
匯管理局關於進一步推進外匯管理改革完善真實合規性審核的通知》), which stipulates
several capital control measures with respect to the outbound remittance of profit from
domestic entities to offshore entities, including: (i) banks should check board resolutions
regarding profit distribution, the original version of tax filing records, and audited financial
statements pursuant to the principle of genuine transactions; and (ii) domestic entities should
hold income to account for previous years’ losses before remitting the profits. Moreover,
pursuant to this circular, domestic entities should make detailed explanations of the sources of
capital and utilization arrangements, and provide board resolutions, contracts, and other proof
when completing the registration procedures in connection with an outbound investment.
On October 23, 2019, the SAFE promulgated the Notice for Further Advancing the Facilitation
of Cross-border Trade and Investment (《國家外匯管理局關於進一步促進跨境貿易投資便利
化的通知》), which, among other things, allows all foreign-invested enterprises to use
Renminbi converted from foreign currency-denominated capital for equity investments in
China, as long as the equity investment is genuine, does not violate applicable laws, and
complies with the negative list on foreign investment. However, since this circular is newly
promulgated, it is unclear how the SAFE and competent banks will carry it out in practice.
According to the Circular of the SAFE on Optimizing Foreign Exchange Administration to

Support the Development of Foreign-related Business (國家外匯管理局關於優化外匯管理支持
涉外業務發展的通知) (the “SAFE Circular 8”) promulgated and effective on April 10, 2020
by the SAFE, the reform of facilitating the payments of incomes under the capital accounts
shall be promoted nationwide. Under the prerequisite of ensuring true and compliant use of
funds and compliance and complying with the prevailing administrative provisions on use of
income from capital projects, enterprises which satisfy the criteria are allowed to use income
under the capital account, such as capital funds, foreign debt and overseas listing, etc., for
domestic payment, without the need to provide proof materials for veracity to the bank
beforehand for each transaction.
Foreign Exchange Registration of Overseas Investment by PRC Residents
In 2014, SAFE issued the SAFE Circular on Issues Concerning Foreign Exchange
Administration over the Overseas Investment and Financing and Round-trip Investment by
Domestic Residents via Special Purpose Vehicles (《國家外匯管理局關於境內居民通過特殊目
的公司境外投融資及返程投資外匯管理有關問題的通知》) (the “SAFE Circular 37”). The
SAFE Circular 37 regulates foreign exchange matters in relation to offshore investments and
financing or round-trip investments of residents or entities by way of special purpose vehicles
in China. Under the SAFE Circular 37, a “special purpose vehicle” refers to an offshore entity
established or controlled, directly or indirectly, by PRC residents or entities for the purpose of
seeking offshore financing or making offshore investments, using legitimate onshore or
offshore assets or interests, while “round-trip investment” refers to direct investments in China
by PRC residents or entities through special purpose vehicles, namely, establishing foreign
– III-34 –
investment enterprises to obtain ownership, control rights and management rights. The SAFE
Circular 37 provides that, before making a contribution into a special purpose vehicle, PRC
residents or entities are required to complete foreign exchange registration with SAFE or its
local branch, and in the event of a change of basic information, such as the individual
shareholder, name, operation term, etc., or if there is a capital increase, decrease, equity
transfer or swap, merger, spin-off or other amendment of material items, the PRC residents or
entities shall complete a change of foreign exchange registration formality for offshore
investments.
In 2015, SAFE promulgated the Notice on Further Simplifying and Improving the
Administration of the Foreign Exchange Concerning Direct Investment. This notice amended
the SAFE Circular 37 by requiring PRC residents or entities to register with qualified banks
rather than SAFE or its local branches in relation to their establishment or control of offshore
entities for the purpose of overseas investment or financing. PRC residents or entities who had
contributed legitimate onshore or offshore interests or assets to special purpose vehicles but
had not registered as required before the implementation of the SAFE Circular 37 must register
their ownership interests or control in the special purpose vehicles with qualified banks.
Amendments to the registration are required if there is any material change with respect to the
registered special purpose vehicle, such as any change of basic information (including change
of the PRC residents, name and operation term), increases or decreases in the investment
amount, transfers or exchanges of shares, or mergers or divisions. Failure to comply with the
registration procedures as set forth in the SAFE Circular 37 and the subsequent notice, or
making misrepresentations or failure to disclose the control of a foreign investment enterprise
which is established through round-trip investments, may result in restrictions being imposed
on the foreign exchange activities of the relevant foreign investment enterprise, including
payment of dividends and other distributions, such as proceeds from any reduction in capital,
share transfer or liquidation, to its offshore parent or affiliate, and the capital inflow from the
offshore parent, and may also subject relevant PRC residents or entities to penalties under PRC
foreign exchange administration regulations.
Stock Incentive Plans
On February 15, 2012, SAFE promulgated the Notice on Foreign Exchange Administration
of PRC Residents Participating in Share Incentive Plans of Offshore Listed Companies (《國
家外匯管理局關於境內個人參與境外上市公司股權激勵計劃外匯管理有關問題的通知》) (the
“Stock Option Rules”), replacing the previous rules issued by SAFE in March 2007. Under the
Stock Option Rules and other relevant rules and regulations, domestic individuals, which
means PRC residents and non-PRC citizens residing in China for a continuous period of not
less than one year, subject to a few exceptions, who participate in a stock incentive plan in an
overseas publicly-listed company, are required to register with SAFE or its local branches and
complete certain other procedures.
Participants of a stock incentive plan who are PRC residents must retain a qualified PRC agent,
which could be a PRC subsidiary of the overseas publicly-listed company or another qualified
institution selected by the PRC subsidiary, to conduct the SAFE registration and other
procedures with respect to the stock incentive plan on behalf of its participants. The
participants must also retain an overseas entrusted institution to handle matters in connection
with their exercise of stock options, the purchase and sale of corresponding stocks or interests
and fund transfers. In addition, the PRC agent is required to amend the SAFE registration with
respect to the stock incentive plan if there is any material change to the stock incentive plan,
the PRC agent or the overseas entrusted institution or other material changes. The PRC agents
must, on behalf of the PRC residents who have the right to exercise the employee share options,
apply to SAFE or its local branches for an annual quota for the payment of foreign currencies
– III-35 –
in connection with the PRC residents’ exercise of the employee share options. The foreign
exchange proceeds received by the PRC residents from the sale of shares under the stock
incentive plans granted and dividends distributed by the overseas listed companies must be
remitted into the bank accounts in the PRC opened by the PRC agents before distribution to
such PRC residents. In addition, the SAFE Circular 37 provides that PRC residents who
participate in a share incentive plan of an overseas unlisted special purpose company may
register with SAFE or its local branches before exercising rights.
REGULATIONS RELATING TO LABOR
According to the Labor Law of the PRC (《中華人民共和國勞動法》) (the “Labor Law”),
which was promulgated by the SCNPC in July 1994, effective on January 1, 1995, and most
recently amended in December 2018, an employer shall develop and improve its rules and
regulations to safeguard the rights of its workers. An employer shall develop and improve its
labor safety and health system, stringently implement national protocols and standards on labor
safety and health, conduct labor safety and health education for workers, guard against labor
accidents and reduce occupational hazards.
The Labor Contract Law of the PRC (《中華人民共和國勞動合同法》) (the “Labor Contract
Law”), which was promulgated by the SCNPC on June 29, 2007, effective on January 1, 2008,
and most recently amended in December 2012, and the Implementation Regulations on Labor
Contract Law of the PRC (《中華人民共和國勞動合同法實施條例》), promulgated and
became effective on September 18, 2008, regulate both parties to a labor contract, namely the
employer and the employee, and contain specific provisions involving the terms of the labor
contract. It is stipulated by the Labor Contract Law and the Implementation Regulations on
Labor Contract Law that a labor contract must be made in writing. An employer and an
employee may enter into a fixed-term labor contract, an unfixed term labor contract, or a labor
contract that concludes upon the completion of certain work assignments, after reaching an
agreement upon due negotiations. An employer may legally terminate a labor contract and
dismiss its employees after reaching an agreement upon due negotiations with the employee or
by fulfilling the statutory conditions. Labor contracts concluded prior to the enactment of the
Labor Contract Law and subsisting within the validity period thereof shall continue to be
honored. With respect to a circumstance where a labor relationship has already been
established but no formal contract has been made, a written labor contract shall be entered into
within one month from the effective date of the Labor Contract Law. In addition, the Labor
Contract Law also imposes requirements on the use of employees of temp agencies, who are
known in China as “dispatched workers”. Dispatched workers are entitled to equal pay with
fulltime employees for equal work. Employers are only allowed to use dispatched workers for
temporary, auxiliary or substitutive positions. The Interim Provisions on Labor Dispatching
(《勞務派遣暫行規定》), issued by the Ministry of Human Resources and Social Security of
the PRC on January 24, 2014 and came into effect on March 1, 2014, requires the number of
dispatched workers to not exceed 10% of the total number of employees.
Enterprises in China are required by PRC laws and regulations to participate in certain
employee benefit plans, including social insurance funds, namely a pension plan, a medical
insurance plan, an unemployment insurance plan, a work-related injury insurance plan and a
maternity insurance plan, and a housing provident fund, and contribute to the plans or funds
in amounts equal to certain percentages of salaries, including bonuses and allowances, of the
employees as specified by the local government from time to time at locations where they
operate their businesses or where they are located. According to the Social Insurance Law of
the PRC (《中華人民共和國社會保險法》), an employer that fails to make social insurance
contributions may be ordered to rectify the non-compliance and pay the required contributions
within a stipulated deadline and be subject to a late fee of up to 0.05% or 0.2% per day, as the
– III-36 –
case may be. If the employer still fails to rectify the failure to make social insurance
contributions within the stipulated deadline, it may be subject to a fine ranging from one to
three times the amount overdue. According to the Regulations on Management of Housing
Fund (《住房公積金管理條例》), an enterprise that fails to make housing fund contributions
may be ordered to rectify the non-compliance and pay the required contributions within a
stipulated deadline, otherwise, an application may be made to a local court for compulsory
enforcement.
On June 23, 2021, the State Post Bureau, the Ministry of Transport, the NDRC, the MOFCOM,
the Ministry of Human Resources and Social Security, the SAMR, and the All-China
Federation of Trade Unions jointly issued the Opinions on Protecting the Legal Rights and
Benefits of the Couriers Group (《關於做好快遞員群體合法權益保障工作的意見》), which
provides certain guidelines in respect of, among others, the Couriers’ base salary, social
security and insurance policy. See also “Risk Factors – Risks Related to Doing Business in
Jurisdictions in Which We Operate – Our failure to fully comply with labor-related laws may
expose us to potential penalties.”
REGULATIONS RELATING TO OVERSEAS LISTING AND M&A
On August 8, 2006, six PRC governmental and regulatory agencies, including the MOFCOM
and the CSRC, jointly promulgated the Regulations on Mergers and Acquisitions of Domestic
Enterprises by Foreign Investors (《關於外國投資者併購境內企業的規定》) (the “M&A
Rules”), a new regulation with respect to the mergers and acquisitions of domestic enterprises
by foreign investors that became effective on September 8, 2006 and revised on June 22, 2009.
Foreign investors shall comply with the M&A rules when they purchase equity interests of a
domestic company or subscribe for the increased capital of a domestic company, and thus
changing the nature of the domestic company into a foreign-invested enterprise; or when the
foreign investors establish a foreign-invested enterprise in the PRC for the purpose of
purchasing the assets of a domestic company and operating the asset; or when the foreign
investors purchase the asset of a domestic company, establish a foreign-invested enterprise by
injecting such assets, and operate the assets. The M&A rules, among other things, purports to
require that an offshore special vehicle, or a special purpose vehicle, formed for listing
purposes and controlled directly or indirectly by PRC companies or individuals, shall obtain
the approval of the CSRC prior to the listing and trading of such special purpose vehicle’s
securities on an overseas stock exchange.
On February 17, 2023, the CSRC released the Trial Administrative Measures of Overseas
Securities Offering and Listing by Domestic Companies (境內企業境外發行證券和上市管理試
行辦法) (the “Trial Measures”) and five supporting guidelines, which came into effect on
March 31, 2023. According to the Trial Measures, (i) domestic companies that seek to offer or
list securities overseas, both directly and indirectly, should fulfill the filing procedure and
report relevant information to the CSRC; if a domestic company fails to complete the filing
procedure or conceals any material fact or falsifies any major content in its filing documents,
such domestic company may be subject to administrative penalties, such as order to rectify,
warnings, fines, and its controlling shareholders, actual controllers, the person directly in
charge and other directly liable persons may also be subject to administrative penalties, such
as warnings and fines; (ii) if the issuer meets both of the following conditions, the overseas
offering and listing shall be determined as an indirect overseas offering and listing by a
domestic company: (a) any of the total assets, net assets, revenues or profits of the domestic
operating entities of the issuer in the most recent accounting year accounts for more than 50%
of the corresponding figure in the issuer’s audited consolidated financial statements for the
same period; (b) its major operational activities are carried out in China or its main places of
business are located in China, or the senior managers in charge of operation and management
– III-37 –
of the issuer are mostly Chinese citizens or are domiciled in China; and (iii) where a domestic
company seeks to indirectly offer and list securities in an overseas market, the issuer shall
designate a major domestic operating entity responsible for all filing procedures with the
CSRC, and where an issuer makes an application for listing in an overseas market, the issuer
shall submit filings with the CSRC within three business days after such application is
submitted.
On the same day, the CSRC also held a press conference for the release of the Trial Measures
and issued the Notice on Administration for the Filing of Overseas Offering and Listing by
Domestic Companies (關於境內企業境外發行上市備案管理安排的通知), which, among
others, clarifies that (i) the domestic companies that have already been listed overseas on or
before the effective date of the Trial Measures (i.e. March 31, 2023) shall be deemed as
existing applicants. Existing applicants are not required to complete the filling procedures
immediately, and they shall be required to file with the CSRC when subsequent matters such
as refinancing are involved; (ii) on or prior to the effective date of the Trial Measures, domestic
companies that have already submitted valid applications for overseas offering and listing but
fail to obtain an approval from overseas regulatory authorities or stock exchanges may
reasonably arrange the timing for submitting their filing applications with the CSRC, and must
complete the filing before the completion of their overseas offering and listing; (iii) a
six-month transition period will be granted to domestic companies which, prior to the effective
date of the Trial Measures, have already obtained the approval from overseas regulatory
authorities or stock exchanges, but have not completed the indirect overseas listing; if such
domestic companies complete their overseas offering and listing within such six-month period
(i.e., on or prior to September 30, 2023), they will be deemed as existing applicants. Within
such six-month transition period, however, if such domestic companies need to reapply for
offering and listing procedures to the overseas regulatory authority or securities exchanges, or
if they fail to complete their indirect overseas issuance and listing, such domestic companies
shall complete the filling procedures with the CSRC before completion of the overseas offering
and listing; and (iv) the CSRC will solicit opinions from relevant regulatory authorities and
complete the filing of the overseas listing of companies with contractual arrangements which
duly meet the compliance requirements.
Furthermore, on February 24, 2022, the CSRC released the Provisions on Strengthening the
Confidentiality and Archives Administration Related to the Overseas Securities Offering and
Listing by Domestic Enterprises (關於加強境內企業境外發行證券和上市相關保密和檔案管理
工作的規定), which became effective on March 31, 2023. It aims to expand the applicable
scope of the regulation to indirect overseas offerings and listings by PRC domestic companies
and emphasize the confidentiality and archive management duties of PRC domestic companies
during the process of overseas offerings and listings.
REGULATIONS RELATING TO ANTI-MONOPOLY
The currently effective Anti-Monopoly Law of PRC (《中華人民共和國反壟斷法》) (the

“Anti-Monopoly Law”) was promulgated by SCNPC in 2007, and its latest revision became
effective on August 1, 2022. On February 7, 2021, the Anti-Monopoly Committee of the State
Council promulgated the Anti-Monopoly Guidelines for the Internet Platform Economy Sector
(《關於平台經濟領域的反壟斷指南》), which stipulates that any concentration of
undertakings involving variable interest entities (VIE) shall fall within the scope of
anti-monopoly review. Moreover, the Anti-Monopoly Law also provides that when a foreign
investor participates in the concentration of undertakings by merging and acquiring a domestic
enterprise or by any other means, the matter may also be subject to review on national security
as is required by the relevant regulations.
– III-38 –
REGULATIONS RELATING TO DIVIDEND DISTRIBUTION
The principal regulations governing distribution of dividends of wholly foreign-owned

enterprise, or WFOE, include the PRC Company Law, the FIL and the Implementation Rules
of the PRC Foreign Investment Law. Under these regulations, wholly foreign-owned
enterprises in China may pay dividends only out of their accumulated profits, if any,
determined in accordance with the PRC accounting standards and regulations. In addition,
foreign invested enterprises in the PRC are required to allocate at least 10% of their
accumulated profits each year, if any, to fund certain reserve funds unless these reserves have
reached 50% of the registered capital of the enterprises. These reserves are not distributable as
cash dividends.
LAWS AND REGULATIONS IN RELATION TO OUR BUSINESS IN MALAYSIA
REGULATORY OVERVIEW
Our business operations in Malaysia are subject to various laws and regulations. Please find
REGULATIONS ON COURIER SERVICES OPERATORS
The primary legislation governing postal services in Malaysia is the Postal Services Act 2012
(“PS Act”), and is enforced by the Malaysian Communications and Multimedia Commission
(“MCMC”). Under the PS Act, an operator of courier services is required to hold a
non-universal service licence. There are three types of non-universal service licence under the
licensing regime regulated by the PS Act: (i) licence A to provide for international inbound and
outbound courier service and domestic courier service in Malaysia; (ii) licence B to provide for
international inbound courier service and domestic courier service in Malaysia; and (iii)
licence C to provide for intra-state domestic courier service in Malaysia. A person who
provides postal services without a valid licence granted under the PS Act commits an offence
and shall, on conviction, be liable to a fine not exceeding Malaysia Ringgit (“RM”) 500,000
or to imprisonment for a term not exceeding five years or to both.
A non-universal service licensee is required to comply with the prescribed standard conditions
of the licence stipulated under the Postal Services (Licensing) Regulations 2015 and any
additional conditions imposed by the Minister of Communications and Multimedia as he thinks
fit. Among some of the prescribed standard conditions are: (i) the licensee shall be a company
incorporated in Malaysia and maintain a registered office in Malaysia; (ii) the licensee shall
have sufficient working capital to enable it to carry out its services under the PS Act and the
non-universal service licence; (iii) the licensee shall provide courier service in accordance with
the type of the non-universal service licence and may provide for any other additional services
related to courier service; and (iv) the licensee shall pay to the MCMC an annual licence fee
as specified in the Postal Services (Licensing) Regulations 2015. A licensee who fails to
comply with any condition of a licence commits an offence and shall, on conviction, be liable
to a fine not exceeding RM300,000 or to imprisonment for a term not exceeding three years
or to both.
The board of directors and the chief executive officer of the licensee must also fulfil certain
qualifications prescribed under the Postal Services (Licensing) Regulations 2015: (i)
competent to carry out the role; (ii) is not an undischarged bankrupt; (iii) has never been issued
an order of detention, supervision, restricted residence, banishment or deportation or imposed
any form of restriction or supervision by bond or otherwise, under any written law relating to
prevention of crime; and (iv) has not held the position of a director or been directly concerned
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in the management of any company which has been convicted of an offence in relation to
dishonesty, incompetence or malpractice during the tenure of his office unless he proves to the
MCMC that such offence was committed without his knowledge or consent and he was not in
a position to prevent the offence.
REGULATIONS ON FRANCHISING BUSINESS
The primary legislation governing franchises in Malaysia is the Franchise Act 1998.
Under Section 6(1) of the Franchise Act 1998, a franchisor or a foreign person who has
obtained an approval to sell a franchise in Malaysia or to any Malaysian citizen under Section
54 shall register his franchise with the Registrar before he can operate a franchise business or
make an offer to sell the franchise to any person. Penalties applicable to body corporates that
fail to comply with Section 6 of the Franchise Act 1998 include a fine not exceeding
RM250,000, and for a second or subsequent offence, a fine not exceeding RM500,000.
For completeness, under the Franchise Act 1998, “franchise” means a contract or an agreement,
either expressed or implied, whether oral or written, between two or more persons by which
(a) the franchisor grants to the franchisee the right to operate a business according to the
franchise system as determined by the franchisor during a term to be determined by the
franchisor; (b) the franchisor grants to the franchisee the right to use a mark, or a trade secret,
or any confidential information or intellectual property, owned by the franchisor or relating to
the franchisor, and includes a situation where the franchisor, who is the registered user of, or
is licensed by another person to use, any intellectual property, grants such right that he
possesses to permit the franchisee to use the intellectual property; (c) the franchisor possesses
the right to administer continuous control during the franchise term over the franchisee’s
business operations in accordance with the franchise system; (d) (Deleted by Act A1442:s.3);
(e) in return for the grant of rights, the franchisee may be required to pay a fee or other form
of consideration; and (f)(Deleted by Act A1442:s.3).“Franchise agreement” means a contract
or an agreement made between a franchisor and a franchisee in respect of a franchise in return
for any form of consideration but does not include any contract or agreement made for the
purpose of direct selling as provided by the Direct Sales Act 1993 (Act 500).
REGULATIONS ON BUSINESS AND ADVERTISEMENT LICENCE
In general, there is a requirement to obtain business premises and advertisement licenses from
the relevant local councils and authorities in accordance with the Local Government Act 1976
and the relevant by-laws and regulations for operating business premises in Malaysia. Most
local or district councils have licensing of trades, businesses and industries by-laws which
stipulate, among others, that no person shall carry on any trade, business or industry in any
place or premises within the local or district council unless he is licensed and such licence shall
be subject to such conditions and restrictions as the local authority may prescribe. Each set of
by-laws applies within the boundaries of each local or district council.
Pursuant to the Local Government Act 1976, any person who fails to exhibit or produce his
licence on a business premises shall be liable to a fine not exceeding RM500 or imprisonment
for a term not exceeding six months or both. Further, as a general penalty, the Local
Government Act 1976 provides that a local authority may, by by-law, rule or regulation
prescribe for the breach of any by-law, rule or regulation, a fine not exceeding RM2,000 or a
term of imprisonment not exceeding 1 year or to both and in the case of a continuing offence
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a sum not exceeding RM200 for each day during which such offence is continued after
conviction. The Local Authorities (Advertisements) By-Laws 2012 provides for a fine of not
more than RM5,000 and imprisonment of not more than 6 months for not having a signboard
licence.
REGULATIONS ON PERSONAL DATA PROTECTION
The Personal Data Protection Act 2010 regulates the processing of personal data in the course
of commercial transactions in Malaysia, and is enforced by the Personal Data Protection
Commissioner (“PDP Commissioner”). A licensee under the PS Act is required to submit an
application for registration to the PDP Commissioner. If such person processes personal data
without a certificate of registration issued by the PDP Commissioner, it shall, on conviction,
be liable to a fine not exceeding RM500,000 or to imprisonment for a term not exceeding three
years or to both.
The Personal Data Protection Act 2010 also sets out seven key data protection principles which
must be adhered to by data users (i.e. a person who either alone or jointly or in common with
other persons processes any personal data or has control over or authorises the processing of
any personal data, but does not include a processor) in Malaysia. Broadly, these principles
include: (i) the requirement to obtain consent prior to processing an individual’s personal data,
the requirement to provide written notice to individuals in both English and the Malay language
stating, among others, the purposes for which the personal data will be processed, the classes
of third parties to whom personal data will be disclosed, and the individual’s rights under the
Act; and (ii) the obligation to ensure that the personal data collected will be processed in a safe
and secure manner. The Personal Data Protection Standard 2015 further prescribes the
minimum requirement for data security in processing personal data.
REGULATIONS ON ANTI-COMPETITIVE PRACTICES
The PS Act stipulates that a licensee under the PS Act shall not engage in any conduct which
has the purpose of substantially lessening competition in the postal market. It must not enter
into any understanding, agreement or arrangement, whether legally enforceable or not, which
provides for rate fixing, market sharing, or boycott of another competitor. Such licensee is also
prohibited from making it a condition for the provision or supply of a product or service in the
postal market that the person acquiring such product or service in the postal market is also
required to acquire or not to acquire any other product or service either from himself or from
another person.
If the MCMC determines that a licensee is in a dominant position in the postal market, the
MCMC may direct to cease conduct in that postal market which has, or may have, the effect
of substantially lessening competition in any postal market, and to implement appropriate
remedies. A person who commits an offence in respect of competition practices under the PS
Act shall, on conviction, be liable to a fine not exceeding RM500,000 or to imprisonment for
a term not exceeding five years or to both.
Apart from the anti-competitive practices regulated under PS Act described above, the
Competition Act 2010 applies to all commercial activities which have an effect on competition
in any market in Malaysia, whether such activities are carried out within or outside Malaysia,
save for commercial activities regulated under specific legislation (such as the
Communications and Multimedia Act 1998, the Energy Commission Act 2001 and the
Malaysian Aviation Commission Act 2015). The Competition Act 2010 is generally enforced
by the Malaysia Competition Commission. Infringements of the Competition Act 2010 may
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result in, among other things, the imposition of a financial penalty of up to 10% of the
worldwide turnover of the enterprise for the period during which the infringement occurred.
The Malaysia Competition Commission may also take other actions, including issuing cease
and desist orders.
LAWS AND REGULATIONS IN RELATION TO OUR BUSINESS IN THAILAND
REGULATORY OVERVIEW
Our business operations in Thailand are subject to various laws and regulations. Please find
The Foreign Business Act
The Foreign Business Act B.E. 2542 (1999) (the “FBA”) provides a legal framework that
regulates the carrying on of business in Thailand by a foreign person or legal entity considered
a “foreigner” under the FBA (a “Foreigner”). Under the FBA, a Thai company in which half
or more of its shares are held by a foreign person or foreign legal entity is considered a
Foreigner. The FBA contains three lists (Annex 1, Annex 2, and Annex 3) which specify certain
types of business that a Foreigner is prohibited from carrying on unless the Foreigner obtains
permission from the Minister of Commerce, requiring prior approval from the Council of
Ministers (in respect of Annex 2) or permission from the Director General of the Department
of Business Development, the Ministry of Commerce, with the approval of the Foreign
Business Commission (in respect of Annex 3). It is not possible to obtain permission to carry
on the types of business specified in Annex 1 as a Foreigner.
Domestic land transport is one of the restricted business types related to Thai national security
under Annex 2. Therefore, a Foreigner engaging in domestic land transport is required to obtain
permission from the Minister of Commerce, with prior approval from the Council of Ministers.
In addition, a service business that is not exempt under the FBA falls within the scope of Annex
3 of the FBA, where permission from the Director General of the Department of Business
Development, the Ministry of Commerce, and the approval of the Foreign Business
Commission must be obtained.
Under the FBA, it is also unlawful for a Thai national or legal entity to hold shares in a Thai
company as a nominee for or on behalf of a Foreigner in order to circumvent or violate the
foreign ownership restrictions of the FBA. In the case that there is a violation, such Thai
nominee will be liable for criminal penalties, including imprisonment and fines. The Foreigner
would be subject to the same penalties. In addition, the court is obliged to order the termination
of the business if there are any nominees in the shareholding structure which are in breach of
the provisions stipulated in the FBA. There are no clear official guidelines or criteria issued or
by the Ministry of Commerce for determining whether or not a Thai national or entity is
holding shares for or on behalf of a Foreigner.
The Land Transport Act
The Land Transport Act requires that service providers of (1) land transportation services and
(2) transportation management services obtain licenses under the Land Transport Act.
The Land Transport Act generally regulates and controls transportation operations, including
the licensing requirements for certain types of land transportation. The Land Transport Act
provides that operators of fixed-route transport, non-fixed-route transport, small vehicle
transport, and private transport are required to apply for licenses. Essentially, the Land
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Transport Act imposes, among other things, key qualifications concerning the shareholding
structure and composition of the board of directors of an applicant, being a private limited
company or public limited company, for obtaining a license to operate fixed-route transport,
non-fixed-route transport, or transport by small vehicle, as follows:
(a) for a private limited company, not less than half of the directors of the operator must be
Thai nationals, and not less than 51% of its registered capital must be held by natural
persons of Thai nationality or by a registered ordinary partnership, limited partnership,
private limited company, ministry, sub-ministry, department, local government, state
enterprise under the law on budgetary procedure, or state organization under the law on
establishment of government organizations, or other such laws; and
(b) for a public limited company, not less than half of the directors of the operator must be
Thai nationals and not less than 50% of its total shares must be held by natural persons
of Thai nationality.
In the case that a shareholder of the private company or public limited company is a registered
ordinary partnership, limited partnership, private limited company, or a public limited
company, such shareholder must also satisfy the requirements specified in (a) or (b) above, as
applicable.
The license under the Land Transport Act is valid for five years from the date of license
issuance for non-fixed-route transport, small vehicle transport, and private transport.
Under the Land Transport Act, the operator shall deposit securities with the registrar in the
form of cash, Thai government bond, or both, or an insurance contract and policy from an
insurance company approved by the registrar. In the case of an insurance contract and policy,
the operator shall be the insured party, while the third party whose damage results from the
transport operation of the licensee shall be the beneficiary for preliminary expenses in
compensation for injury to the life or body of the third party which the operator is liable to pay
on account of his transport operation, subject to the rules, procedures, and conditions
prescribed in the Ministerial Regulations. Moreover, when a vehicle of an operator causes
injury to the life or body of any person, the operator who is the owner of the vehicle causing
such injury shall be liable for preliminary expenses to the injured person or an heir of the
injured person in the case that the injured person is dead. The preliminary expenses to be paid
to the injured person shall be determined commensurate with the seriousness of the case,
subject to the rate prescribed in the Ministerial Regulations. Notwithstanding the foregoing, the
compensation of preliminary expenses shall not prejudice the right of the injured person to
claim compensation for damages resulting from tort under the Civil and Commercial Code.
The operator shall be required to comply with the conditions as described in the relevant
licenses set out by the registrar in accordance with the rules prescribed by the Central Land
Transport Control Board, e.g., the number of vehicles to be used in the transport operation, the
nature, type and size of the vehicles, the sign of the transport operator – which is to be made
apparent on every vehicle, the place for keeping, repairing, or maintaining the vehicles, etc.
Furthermore, the operator shall comply with the Land Transport Act, such as the condition
requiring the operator to have at least half of its directors be of Thai nationality as well as the
requirements with regard to transportation safety as prescribed in the Ministerial Regulations.
If the operator fails to do so, including failure to comply with the transportation liability
requirements under the preceding paragraph, the registrar shall have the power to order the
operator to rectify the matter within the period prescribed. If the operator still fails to do so,
or it is apparent that the operator is unable to comply with such conditions or requirements, or
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if action by the operator would endanger the public or have a deleterious effect on the public
welfare, the registrar, with the approval of the Central Land Transport Control Board, may
revoke the license to operate non-fixed route transportation service.
Currently, a land transportation service using motorbikes is not regulated under the Land
Transport Act.
In regard to the operation of transportation management services, Section 4(8) of the Land
Transport Act defines “transportation management” as being engaged to gather persons,
animals, or things, and organizing other persons with licenses to deliver such things from one
place to another on behalf of the delivery organizer. Section 65 of the Land Transport Act
specifies that no one is allowed to operate a transportation management service without a
license. The requirements and procedures concerning the application for and the granting of a
license are set out in the Ministerial Regulations. As of the date of this Offering Circular, no
Ministerial Regulations have been issued under section 65 to implement the transportation
management license requirements and application process.
However, if Ministerial Regulations under section 65 of the Land Transport Act are issued in
the future that impose requirements and establish a process for requesting and approving
licenses for transportation management services, we shall apply for such licenses as required,
within the specified timeframes, and shall comply with the applicable requirements of the
Department of Land Transport. We continue to regularly monitor the status of and changes in
the Ministerial Regulations under section 65 of the Land Transport Act, as well as other
relevant regulations.
The Vehicle Act
The Vehicle Act B.E. 2522 (1979), as amended, (the “Vehicle Act”) generally regulates and
controls the use of vehicles not subject to the Land Transport Act as mentioned above,
including motor-tricycles, motorcycles, public transport vehicles, and private vehicles that are
not used in transport for remuneration. The Vehicle Act imposes requirements in relation to the
use of vehicles, vehicle registration, annual tax payment, driving licenses, and other
requirements concerning road safety. The Vehicle Act provides that no person shall use a
vehicle for any purpose other than that which is specified under its registered category, subject
to some exemptions for certain categories (i.e., personal use of vehicles that are registered for
business services). Failure to comply with this requirement will result in the operator being
subject to a fine of not more than Thai Baht (“THB”) 2,000 per violation.
The Land Traffic Act
The Land Traffic Act B.E. 2522 (1979), as amended (the “Traffic Act”), allows a traffic officer
to issue notifications or regulations with respect to traffic safety and traffic flow, including
restrictions on the movements of all or some types of vehicles, the parking or stopping of
vehicles, one-way systems, and other restrictions. There are regulations issued by the
nationwide traffic officer under the Traffic Act which prohibit 4-wheel trucks and 6-wheel
trucks from being driven in all areas of Bangkok from 6 a.m. to 9 a.m. and from 4 p.m. to 8
p.m. of every day, except official holidays. However, there are some exceptions with regard to
certain principal streets where the restrictions are more stringent. For example, on certain main
roads (such as Ladprao, Ramkhamhaeng, etc.), six-wheeled trucks are prohibited from being
driven during the periods of 5 a.m. to 10 a.m. and 3 p.m. to 9 p.m. Failure to comply with a
traffic officer’s order will result in a fine of THB1,000 per violation.
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The Personal Data Protection Act
The Personal Data Protection Act B.E. 2562 (the “PDPA”) is the key regulation on personal
data protection in Thailand. The PDPA has become effective on June 1, 2022.
The PDPA governs the collection, use, and disclosure of personal data by a data controller (i.e.,
a person or legal entity with decision-making power concerning the collection, use, or
disclosure of personal data) or a data processor (i.e., a person or legal entity who operates in
relation to the collection, use, or disclosure of personal data per the instructions of or on behalf
of a data controller) dealing with personal data owners residing in Thailand, whether the
collection, use, or disclosure is done in Thailand or not.
The data controller is generally prohibited from collecting, using, or disclosing personal data,
unless consent from the owner of the personal data has been obtained or otherwise permitted
by law. Amongst other requirements under the PDPA, the request for consent must clearly
provide the purpose(s) of collection, use, or disclosure. Consent may be revoked at any time,
but such revocation does not affect the collection, use, or disclosure of personal data carried
out prior to the revocation. Consent obtained pursuant to a request that is not in compliance
with the requirements under the PDPA is not binding on a personal data owner.
The PDPA also imposes certain obligations on data controllers and data processors, such as
data security measures, maintenance of records of use and disclosure, data breach notification,
appointment of data protection officer (as applicable), etc. Furthermore, transfer of personal
data to a foreign country may be made, provided that that country or the international
organization that receives the personal data has sufficient data protection standards in
accordance with the personal data protection criteria promulgated under the PDPA or another
legal exemption is obtained.
The PDPA provides owners of personal data with various rights, including the right to access
personal data maintained by data controllers, the right to request the destruction of personal
data, and the right to suspension of use of personal data under certain circumstances.
The PDPA provides for civil liability, criminal liability, and administrative penalties in
connection with its violation. Civil liability under the PDPA includes compensation for damage
and punitive damages in an amount not exceeding twice the amount of the actual damage.
Criminal liability ranges from imprisonment of up to one year to a fine of up to THB1,000,000,
or both, depending on the nature of the violation. Administrative penalties include an
administrative fine of up to THB5,000,000, depending on the nature of the violation.
LAWS AND REGULATIONS IN RELATION TO OUR BUSINESS IN VIETNAM
REGULATORY OVERVIEW
Our business operations in Vietnam are subject to various laws and regulations. Please find
VIETNAM INVESTMENT LAW
The Law on Investment No. 61/2020/QH14 adopted by the National Assembly of Vietnam on
June 17, 2020, as amended (collectively, the “Law on Investment 2020”) sets out a legal
framework regulating, among others, the investment activities in Vietnam including foreign
investment into Vietnam.
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Foreign investment in Vietnam
Under the Law on Investment 2020 and Decree No. 31/2021/ND-CP dated March 26, 2021 of
the Government guiding a number of articles of the Law on Investment 2020 (“Decree 31”),
foreign investors are entitled to enjoy the market access conditions applicable to domestic
investors unless the business activities which are intended by the foreign investors fall into the
list of business activities that are conditional or not permitted for foreign investors’ market
access as specified under Annex 1 of Decree 31. There are a number of market access
conditions applied to foreign investors.
In addition to foreign investors, an economic organization that falls within any of the following
circumstances will be considered as a foreign investor equivalent entity (“FIEE”) and required
to fulfil conditions and carry out the relevant investment procedures applicable to foreign
investors (including the above-mentioned market access conditions) when establishing new
entity, contributing capital, purchasing shares or equity capital, and investing under a business
cooperation contract in Vietnam:
(i) foreign investors hold more than 50% of the charter capital of the economic organization
or majority of the partners of the economic organization in the form of partnerships are
foreign individuals;
(ii) economic organizations referred to in point (i) above hold more than 50% of the charter
capital of another economic organization; and
(iii) foreign investors and the economic organizations referred to in point (i) above jointly
hold more than 50% of the charter capital of another economic organization.
Investment registration certificate
In order to invest in Vietnam in a form of establishment of an economic organization, a foreign

investor or a FIEE is required at the Law on Investment 2020 to satisfy the applicable market
access conditions, have the relevant investment project and obtain an investment registration
certificate (“IRC”) for such investment project from the competent authority except in cases
of establishing small and medium sized innovative startup enterprises and innovative startup
investment funds. On the other hand, the IRC is optional for the domestic investors. Any
change to the contents of the IRC will trigger the application for amendment to the IRC.
M&A Approval
When a foreign investor or a FIEE acquires shares, capital contribution portion or makes
capital contribution in a Vietnamese company, the foreign investor or FIEE is not required to
obtain the IRC. Instead, the Law on Investment 2020 requires the foreign investor or FIEE to
obtain an approval on registration of its capital contribution, acquisition of shares or capital
contribution portion (the “M&A Approval”) from the competent investment authority
(normally the provincial Department of Planning and Investment or “DPI”) in any of following
cases:
(i) The transaction results in the increase in the foreign ownership in the Vietnamese target
company, who has registered to implement any business lines for which the market access
is conditional for foreign investors;
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(ii) The transaction results in (A) the foreign ownership in the Vietnamese target company
increasing from 50% or below 50% to more than 50%; or (B) the increase in the foreign
ownership where the existing foreign ownership in the Vietnamese target company has
already exceeded 50%; or
(iii) The Vietnamese company having land use right certificate in respect of land lots located
in border areas, coastal areas, or areas affecting national defense or security.
VIETNAM ENTERPRISES LAW
The Law on Enterprises No. 59/2020/QH14 adopted by the National Assembly of Vietnam on
June 17, 2020, as amended (collectively, the “Law on Enterprises 2020”) regulates the
establishment and operation of a company in Vietnam and, together with the Law on
Investment 2020, improves the quality and efficiency of Vietnam’s investment environment by
providing conditions that are favorable for both domestic and foreign investors in
implementation of their investment projects, establishment and operation of companies in
Vietnam.
Enterprise Registration Certificate
Under the Law on Enterprises 2020, any company incorporated in Vietnam is required to obtain
the enterprise registration certificate (the “ERC”) from the Business Registration Office of the
provincial DPI where the head office is located. The company is required to register with, or
serve notification to, the Business Registration Office of the provincial DPI about any change
to the content of the ERC within ten (10) days from occurrence of such change.
Corporate Governance Structure of a Single-member Limited Liability Company
Under the Law on Enterprises 2020, a company may be incorporated in the form of, among
others, a single-member limited liability company (the “Single-member LLC”). Unlike a joint
stock company in which its charter capital is divided into shares, charter capital of the
Single-member LLC consists of capital contribution portions contributed by the owner that can
be either an individual or an organization. The organizational structure of a Single-member
LLC with owner being an organization could be in one of the following:
(i) The president and the (general) director; or
(ii) Members’ council and the (general) director.
From January 1, 2021, the Single-member LLC is no longer required to have an inspector (or
inspection committee) in its corporate governance as so required previously under old
enterprise laws.
Under the Law on Enterprises 2020, a company must have at least one legal representative
being an individual resides in Vietnam who (A) represents the company to exercise the
company’s rights and obligations arising from its transactions, (B) represents the company in
the capacity of a party requesting settlement of civil cases, plaintiff, respondent or person with
related interests or obligation before arbitration or court, and (C) has other rights and
obligations under the Vietnamese law. A Single-member LLC must have at least one legal
representative who is the chairman of members’ council (applicable for the Single-member
LLC having three (3) authorized representatives or more from its owner), the president
(applicable for the Single-member LLC having only one (1) authorized representative from its
owner) or the (general) director.
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PROFIT DISTRIBUTIONS AND OVERSEAS REMITTANCE
Under the Law on Enterprises 2020, the owner of a Single-member LLC is not allowed to be
distributed profits by the Single-member LLC when the company has not yet paid in full its
debts and other financial obligations which become due. Pursuant to Circular No. 05/2014/TT-
NHNN dated March 12, 2014 of the State Bank of Vietnam guiding the opening and use of
indirect investment capital accounts (“IICA”) for implementation of foreign indirect
investment activities in Vietnam and Circular No. 06/2019/TT-NHNN dated June 26, 2019 of
the State Bank of Vietnam guiding the foreign exchange management for the foreign direct
investment in Vietnam (“Circular 06/2019”), remittance of profit from a company
incorporated in Vietnam to foreign investors must be made through either (A) a direct
investment capital account (“DICA”) of the company if such company is required by the
Vietnamese law to open and maintain DICA at a licensed bank in Vietnam; or (B) an IICA of
the foreign investor if the DICA is not required for the company.
At least seven (7) business days prior to the remittance of profit offshore, a foreign investor
is required to directly or authorize the company to serve a notice on offshore remittance of
profits to the competent tax authority. Circular 186/2010/TT-BTC dated November 18, 2010 of
the Ministry of Finance guiding the overseas remittance of profits earned by foreign
organizations and individuals from their direct investment in Vietnam under the investment law
provides that the annual profit to be remitted offshore is equivalent to the amount of profit
distributable to investors for that fiscal year determined based on the audited financial
statement and declaration on tax finalization of the company plus (+) other profit amount (if
any) such as undistributed profit accrued from previous year(s) minus (-) amounts used or
undertaken to use by foreign investor to reinvest in Vietnam or used for payment of
expenditures of the foreign investors in Vietnam.
POSTAL AND FREIGHT ROAD TRANSPORT SERVICES
Postal Services
Postal License
The Postal Law No. 49/2010/QH12 adopted by the National Assembly of Vietnam on June 17,
2010 (the “Vietnamese Postal Law”) provides regulations on, among others, investment in and
provision of postal services. A company providing courier services of mails and documents
having recipient address with unit weight of up to two (2) kilograms is required to obtain the
postal license with a term of no more than ten (10) years from the provincial Department of
Information and Communications (“Provincial DIC”) (if courier services are provided within
a province only) or from the Ministry of Information and Communications (“MIC”) (if courier
services are provided nationwide and/or internationally) upon satisfaction of certain
conditions.
Written Certification of Notification of Postal Service Activities
In addition, under the Vietnamese Postal Law, a postal service provider is also required to
notify the Provincial DIC or MIC (where applicable) about provision of any of the following
postal services:
(i) letter services with unattended recipient weighing up to two (2) kilograms;
(ii) letter services with unit weight of up to two kilograms;
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(iii) parcel services:
(iv) acting as an agent for a foreign postal service provider;
(v) receiving a commercial franchise in the postal sector from abroad into Vietnam;
(vi) acting as a representative for a foreign postal service provider;
(vii) acting as a branch or representative office of a postal service provider established under
the Vietnamese law; and
(viii) acting as a representative office of a foreign postal service provider.
Upon receipt of the notification application dossier of the company, either Provincial DIC or
MIC (where applicable) will issue the Written Certification of Notification of Postal Service
Activities.
Notice and reporting obligations of a postal service provider
Decree No. 47/2011/ND-CP dated June 17, 2011 of the Government guiding in details certain
articles of the Vietnamese Postal Law, as amended, further provides that the postal service
provider is required to service a written notice to the competent authorities issuing the postal
license and the written certification of notification of postal service activities within seven (7)
business days from occurrence of any of the following changes:
(i) change in the legal representative, or contacting phone number of the legal representative,
or charter capital of the postal service provider;
(ii) change in price of postal service; or
(iii) change in service quality criteria, or templates of contract on supplying or using postal
service, or complaint handling and compensation rules in relation to postal services of the
postal service provider.
Besides, the postal service provider is obliged to submit (A) bi-annual and annual reports on
the business and provision of postal services in forms as prescribed under Circular No.
35/2016/TT-BTTTT dated December 26, 2016 of the MIC regulating postal reports to the
Provincial DIC and the MIC; and (B) quarterly reports on, among others, revenue, volume of
the postal services and contribution amount made to the State budget in forms as prescribed
under Circular No. 04/2022/TTBTTTT dated June 22, 2022 of the MIC regulating statistics
reporting scheme in information and communication sector.
Freight Road Transport Services
Under the Law on Road Traffic No. 23/2008/QH12 adopted by the National Assembly of
Vietnam on November 13, 2008, as amended, the freight transportation by automobile services
comprise of (A) ordinary freight transportation, (B) freight transportation by taxi truck, (C)
transportation of oversized and overweight cargoes, and (D) transportation of dangerous
cargoes. A freight transport service provider is required to obtain the Automobile
Transportation License issued by the provincial Department of Transport.
Furthermore, a freight transport company must comply with a number of requirements

applicable to freight road transport business provided under Decree No. 10/2020/ND-CP of the
Government dated January 17, 2020 guiding transport by automobiles business and conditions
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for transport by automobiles business, as amended (“Decree 10/2020”) and Circular No.
12/2020/TT-BGTVT dated May 29, 2020 of the Ministry of Transport guiding organization and
management of auto transport operations and auxiliary services of road transport as amended
(“Circular 12/2020”) including, among others, requirements on transporting automobiles,
management of drivers and training, transport documents, road transport safety, information
storage, information system and technical equipment. The freight transport company is also
required to submit monthly reports in the form prescribed under Circular 12/2020 to the
provincial Department of Transport.
FRANCHISING ACTIVITIES
Unlike inward franchising activities into Vietnam which is subject to the registration
requirement with the Ministry of Industry and Trade under Decree 35/2006/ND-CP of the
Government dated March 31, 2006 providing detailed guidance the Law on Commerce in
franchising activities as amended (“Decree 35/2006”), parties carrying out domestic
franchising activities are required to report to the provincial Department of Industry and Trade
about their franchising activities (Article 17a.2 of Decree 35/2006).
LABOR, SOCIAL INSURANCE AND EMPLOYMENT-RELATED HYGIENE AND

SAFETY REGULATIONS
Labor Code and Labor Contracts
The Labor Code No. 45/2019/QH14 adopted by the National Assembly of Vietnam on
November 20, 2019 (the “Labor Code 2019”) sets out legal framework on labor-related
matters. The Government and the Ministry of Labor, War Invalids and Social Affairs have also
issued a number of decrees and circulars to implement the Labor Code 2019.
Under the Labor Code 2019, any labor contract must be made in writing or in permitted
electronic form and signed by and between employee and the authorized representatives of the
employer, except for those with a term of less than one month. A labor contract must include
a number of mandatory provisions.
The term of a labor contract could be indefinite or a fixed term for a duration of up to thirty-six
(36) months and the wages paid to the employee shall not be lower than the minimum amount
provided by the Government based on categories of geographical regions in Vietnam.
Internal Labor Rules
Under the Labor Code 2019, a company incorporated in Vietnam with more than ten (10)
employees must prepare and approve the internal labor rules (“ILR”) which contains a number
of mandatory principle contents and, within ten (10) days from the issuance, register such ILR
with the relevant Department of Labor, Invalids and Social Affairs (“DOLISA”) of the city or
province where the company has registered for its business operations.
Foreign employees
A foreign employee working in Vietnam is required to obtain a work permit, except for certain
exemption cases under the Labor Code 2019 including, among others, foreign employees being
the owner or member/investor of a limited liability company having the charter capital of
Vietnamese Dong (“VND”) three (3) billion or more, internal transfer in sectors permitted by
the Government, foreign employees entering into Vietnam for less than three (3) months for
introduction of services or handling of complicated technical and technological incidents. In
such exemption cases, the employer must obtain confirmation on work permit exemption from
the competent labor authorities. In addition, pursuant to Decree 152/2020/ND-CP dated
– III-50 –
December 30, 2020 of the Government providing details guidance on the implementation of the
Labor Code 2019 on foreign employees working in Vietnam, as amended, the employer having
foreign employees is required to submit bi-annual reports on employment status of its foreign
employees to the provincial DOLISA.
Compulsory insurances
Under the Law on Social Insurance No. 58/2014/QH13 adopted by the National Assembly of
Vietnam on November 20, 2014, the Law on Health Insurance No. 25/2008/QH12 adopted by
the National Assembly of Vietnam on November 14, 2008 (as amended), the Law on
Employment No. 38/2013/QH13 adopted by the National Assembly of Vietnam on
November 16, 2013 and the Law on Labor Safety and Hygiene No. 84/2015/QH13 adopted by
the National Assembly of Vietnam on June 25, 2015 (as amended), employees and employers
are required to make contributions to the social insurance schemes which include social, health,
occupational accidents and diseases and unemployment insurances in Vietnam in favor of
Vietnamese employees (and certain categories of foreign employees). The contributions are
calculated based on the employee’s wage or salary specified under the labor contract and made
by both employee and employer in specific percentage set forth by laws.
Occupational training for drivers
Under Decree 10/2020 and Circular 12/2020, a freight transport company is required to
organize transportation profession and safety trainings for its drivers every three (3) years.
Upon completion of the trainings, the drivers will be issued with the training certificates by the
relevant training service provider.
ENVIRONMENT AND FIREFIGHTING AND FIRE PREVENTION
Firefighting and fire prevention
The Law on Fire Fighting and Prevention No. 27/2001/QH10 adopted by the National
Assembly of Vietnam on June 29, 2001, as amended (collectively, the “Law on Fire Fighting
and Prevention”) imposes various rules on fire-fighting and prevention that a company must
comply.
In particular, owners of construction works that are listed under Annex III of Decree No.
136/2020/ND-CP dated November 24, 2020 of the Government providing guidance on certain
articles of the Law on Fire Fighting and Prevention (“Decree 136/2020”) are required to
comply with a number of firefighting and prevention requirements.
Compulsory fire and explosive insurance
Pursuant to Decree No. 23/2018/ND-CP dated February 23, 2018 of the Government providing
compulsory fire and explosion insurance and Decree 136/2020, any facility which falls within
the list of facilities at fire and explosion risk under Annex II of Decree 130/2020 is required
to purchase compulsory insurance including warehouses for storing flammable goods or
non-flammable goods in flammable packaging with total volume of 5,000 cube meter and
above.
DATA PRIVACY
In Vietnam, there is not a single comprehensive data protection law. Instead, regulations on
data protection and privacy can be found in various legal instruments. The Civil Code No.
91/2015/QH13 adopted by the National Assembly of Vietnam on November 24, 2015 provides
– III-51 –
an individual with the fundamental right in privacy, personal and family secrecy and requires
any collection, storage, use and disclosure of an individual’s personal information must be
subject to his/her consent. Currently, the key regulations on data privacy in Vietnam are the
Law on Cyber Security No. 24/2018/QH14 (the “Law on Cyber Security”) adopted by the
National Assembly of Vietnam on June 12, 2018 and the Law on Cyber Information Security
No. 86/2015/QH13 (the “Law on Cyber Information Security”) adopted by the National
Assembly of Vietnam on November 19, 2015.
Under the Law on Cyber Information Security, any organization and individual who processes
personal information (the “Information Processing Entities”) has the following
responsibilities:
(i) Collecting personal information only after obtaining the consents from the relevant
individual regarding the scope and purpose of collection and use of such information;
(ii) Using the collected information for purposes other than the initial one only after obtaining
the consent from the relevant individual; and
(iii) Refraining from providing, sharing or spreading collected personal information to a third
party, unless otherwise agreed by the relevant individual or at request of the competent
authorities.
Upon receiving the request of the individual for updating, altering or removing his/her personal
information or stopping the information sharing with third parties, the Information Processing
Entities are required to:
(i) Perform requests of the individual and notifying him/her about the fulfillment of the
requests or granting the individual with the access right to update, alter or remove
information by his/her self; and
(ii) Take appropriate measures to protect personal information and notify the individual
owning such information in case of being unable to fulfil his/her request due to technical
or other reasons.
In addition, under the Vietnamese Postal Law, the postal service provider also has obligations
to not disclose information of the service users including personal information except for the
security reason.
Vietnam’s data and privacy protection regime continues to evolve. The recent Decree
No. 13/2023/ND-CP on Personal Data Protection dated April 17, 2023 (taking effect from July
1, 2023) (“Decree 13/2023”) is similar to other data privacy and protection laws enacted
around the globe. It codifies and tightens personal data protection regulations in Vietnam. In
particular, a data owner’s consent to disclose, process, use for advertising purposes and transfer
personal data must be in printable/copyable or verifiable form, and such consent may be
withdrawn at any time and at the discretion of the data owner. Silence or non-response is not
deemed to be consent from the data owner. In addition, any processing of personal data or
cross-border transfer of personal data out of Vietnam is subject to the assessment by the
Department of Cybersecurity and High-tech Crime Prevention and Control, the supervisory
authority of personal data protection in Vietnam. Failure to comply with personal data
protection regulations will result in administrative fines, having licenses required to process
personal data being revoked or suspended or in extreme cases, criminal liability.
– III-52 –
Vietnam has also passed laws which stipulated that individuals and companies must implement
measures to assure data security. For example, entities providing information technology
services must comply with regulations on data localization and storage, and are required to
apply blocking and handling measures upon receipt of a notice that sending such information
is illegal and implement measures to allow recipients to refuse the receipt of information.
INTELLECTUAL PROPERTY
In order to provide the legal framework for the use of intellectual properties in Vietnam, the
National Assembly of Vietnam adopted the Law on Intellectual Property No. 50/2005/QH11 on
November 29, 2005 and subsequently amended in June 19, 2009 and June 14, 2019 and June
16, 2022 (collectively, the “Law on Intellectual Property”) under which the main subject
matters of intellectual property rights are, among others, industrial property rights including,
but not limited to, industrial designs, trade secrets, trademarks and trade names.
An organization or an individual has the right to register the intellectual property right for
goods that such organization or individual produces and services that such organization or
individual provides. The trademark registration certificate takes effect from the issuance date
and expires after ten (10) years from the submission of the registration application and can be
renewed for multiple consecutive 10-year terms.
The industrial property owner (including trademark owner) may transfer the ownership of or
license the rights to use the industrial property to another organization or individual. Under the
Law on Intellectual Property, the industrial property right transfer agreement must be made in
writing and may only come into force upon completion of the registration of such transfer
agreement with the competent industrial property authority while the industrial property right
license agreement will be effective as agreed between the parties.
COMPETITION LAW
The Law on Competition No. 23/2018/QH14 adopted by the National Assembly of Vietnam on
June 12, 2018 (the “Law on Competition 2018”), together with its implementing decrees
issued by the Government, including Decree No. 75/2019/ND-CP of the Government dated
September 26, 2019 on administrative sanctions in competition sector (“Decree 75/2019”) and
Decree No. 35/2020/ND-CP of the Government dated March 24, 2020 guiding the
implementation of a number of articles of the Law on Competition 2018 (“Decree 35/2020”),
set out a legal framework for competition law of Vietnam.
Agreements on competition restraint
The Law on Competition 2018 provides the list of anti-competition agreements which are
subject to prohibition or restriction, categorized in horizontal agreements and vertical
agreements, along with regime for possible exemption for certain types of anti-competition
agreements subject to discretion of the competition authority.
Economic concentration
In addition, the Viet Nam Competition Commission supervises merger control in Vietnam. Any
transaction regarded as an economic concentration that reaches certain reportable thresholds
based on the size of transaction (applicable to onshore transactions only), total assets in
Vietnam, total sales (or total purchase volume) in Vietnam or market share in the relevant
market, is subject to a notification of economic concentration and regulatory consent before the
transaction is conducted. The Vietnam competition law provides a two-phase appraisal process
– III-53 –
of a merger filing: preliminary appraisal (taking up to 30 days) and official appraisal (taking
between 90 and 150 days). The official appraisal will only be conducted if the conclusion of
the preliminary appraisal is that it is required.
Any party committing violation of the Vietnam competition law will, depending on the nature
and seriousness of relevant violations, be subject to discipline measures, administrative
sanctions or criminal liabilities. In case of causing damages to the interests of the State,
legitimate rights and interests of organizations and individuals, the violating party will be
subject to compensation responsibility for such damages.
– III-54 –
APPENDIX IV SUMMARY OF THE CONSTITUTION OF OUR COMPANY

AND THE COMPANY LAWS OF THE CAYMAN ISLANDS
Set out below is a summary of certain provisions of the Memorandum and Articles of
Association of the Company and of certain aspects of the company laws of the Cayman Islands.
The Company was incorporated in the Cayman Islands as an exempted company with limited
liability on October 24, 2019 under the Cayman Companies Act. The Company’s constitutional
documents consist of its Memorandum and Articles of Association.
1. MEMORANDUM OF ASSOCIATION
1.1 The Memorandum provides, inter alia, that the liability of members of the Company is
limited and that the objects for which the Company is established are unrestricted
(and therefore include acting as an investment company), and that the Company shall
have and be capable of exercising any and all of the powers at any time or from time to
time exercisable by a natural person or body corporate whether as principal, agent,
contractor or otherwise and, since the Company is an exempted company, that the
Company will not trade in the Cayman Islands with any person, firm or corporation
except in furtherance of the business of the Company carried on outside the Cayman
Islands.
1.2 By special resolution the Company may alter the Memorandum with respect to any
objects, powers or other matters specified in it.
2. ARTICLES OF ASSOCIATION
The Articles were conditionally adopted on [date]. A summary of certain provisions of the
Articles is set out below.
2.1 Shares
(a) Classes of shares
The share capital of the Company consists of Class A Shares and Class B Shares.
The authorised share capital of the Company is US$50,000 divided into
[979,333,410] Class A Shares of a par value of US$[0.000002] each and
[24,020,666,590] Class B Shares of a par value of US$[0.000002] each.
(b) Rights attaching to shares
Subject to the Articles of Association, the holders of Class A Shares and Class B
Shares shall at all times vote together as one class on all resolutions submitted to a
vote by the members. Subject to this paragraph, on each resolution subject to a vote
at general meetings on a poll, each Class A Share shall entitle its holder to ten votes
and each Class B Share shall entitle its holder to one vote.
The Company shall not take any action (including the issue or repurchase of Shares
of any class) that would result in (a) the aggregate number of votes entitled to be cast
by all holders of Class B Shares (for the avoidance of doubt, excluding those who
are also holders of Class A Shares) present at a general meeting to be less than 10%
of the votes entitled to be cast by all members at a general meeting; or (b) an
increase in the proportion of Class A Shares to the total number of shares in issue.
– IV-1 –

No further Class A Shares shall be issued by the Company, except with the prior
approval of the Stock Exchange and pursuant to (i) an offer to subscribe for shares
made to all the members pro rata (apart from fractional entitlements) to their
existing holdings; (ii) a pro rata issue of shares to all the members by way of scrip
dividends; or (iii) a stock split or other capital reorganisation provided that the Stock
Exchange is satisfied that the proposed allotment or issuance will not result in an
increase in the proportion of Class A Shares in issue, so that:
(i) if, under a pro rata offer, any holder of Class A Shares does not take up any part
of the Class A Shares or the rights thereto offered to him, such untaken shares
(or rights) shall only be transferred to another person on the basis that such
transferred rights will only entitle the transferee to an equivalent number of
Class B Shares; and
(ii) to the extent that rights to Class B Shares in a pro rata offer are not taken up
in their entirety, the number of Class A Shares that shall be allotted, issued or
granted in such pro rata offer shall be reduced proportionately.
Class A Shares shall only be held by a Director or a limited partnership, trust, private
company or other vehicle wholly owned and wholly controlled by a Director
(a “Director Holding Vehicle”). Subject to the Listing Rules or other applicable
laws or regulations, each Class A Share shall be automatically converted into one
Class B Share upon the occurrence of any of the following events:
(i) the death of the holder of such Class A Share (or, where the holder is a Director
Holding Vehicle, the death of the Director holding and controlling such
Director Holding Vehicle);
(ii) the holder of such Class A Share ceasing to be a Director or a Director Holding
Vehicle for any reason;
(iii) the holder of such Class A Share (or, where the holder is a Director Holding
Vehicle, the Director holding and controlling such Director Holding Vehicle)
being deemed by the Stock Exchange to be incapacitated for the purpose of
performing his duties as a Director;
(iv) the holder of such Class A Share (or, where the holder is a Director Holding
Vehicle, the Director holding and controlling such Director Holding Vehicle)
being deemed by the Stock Exchange to no longer meet the requirements of a
director set out in the Listing Rules; or
(v) the transfer to another person of the beneficial ownership of, or economic
interest in, such Class A Share or the control over the voting rights attached to
such Class A Share (through voting proxies or otherwise), other than (i) the
grant of any encumbrance, lien or mortgage over such share which does not
result in the transfer of the legal title or beneficial ownership of, or the voting
rights attached to, such share, until the same is transferred upon the
enforcement of such encumbrance, lien or mortgage; and (ii) a transfer of the
legal title to such share by a Director to a Director Holding Vehicle held and
controlled by him, or by a Director Holding Vehicle to the Director holding and
controlling it or another Director Holding Vehicle held and controlled by such
Director.
– IV-2 –

Notwithstanding the foregoing, (i) the weighted voting rights attached to a

Director’s Class A Shares must cease upon transfer to another person of the
beneficial ownership of, or economic interest in, such Class A Shares or the control
over the voting rights attached to them (through voting proxies or otherwise); (ii) a
Director Holding Vehicle may hold Class A Shares carrying weighted voting rights
on behalf of a Director of weighted voting rights provided that such an arrangement
does not result in a circumvention of sub-paragraph (i) above; and (iii) if a Director
Holding Vehicle holding Class A Shares carrying weighted voting rights in the
Company on behalf of a Director no longer complies with sub-paragraph (ii) above,
such Director’s weighted voting rights in the Company must cease, and the
Company and the Director must notify the Stock Exchange as soon as practicable
with details of the non-compliance.
Any conversion of Class A Shares into Class B Shares pursuant to the Articles shall
be effected by the re-designation of each Class A Share into one Class B Share. Such
conversion shall become effective forthwith upon entries being made in the register
of shareholders of the Company to record the re-designation of the relevant Class A
Shares as Class B Shares.
All of the Class A Shares in the authorised share capital shall be automatically
re-designated into Class B Shares in the event all of the Class A Shares in issue are
converted into Class B Shares in accordance with this paragraph, and no further
Class A Shares shall be issued by the Company.
Notwithstanding any provisions in the Articles to the contrary, each Class A Share
and each Class B Share shall entitle its holder to one vote on a poll at a general
meeting in respect of a resolution on any of the following matters:
(i) any amendment to the Memorandum or the Articles, however framed,

including the variation of the rights attached to any class of shares;
(ii) the appointment, election or removal of any independent non-executive

Director;
(iii) the appointment or removal of the auditors; or
(iv) the voluntary liquidation or winding-up of the Company.
Notwithstanding the foregoing, where a holder of Class A Shares is permitted by the

Stock Exchange from time to time to exercise more than one vote per share when
voting on a resolution to amend the Memorandum or the Articles, any holder of
Class A Share may elect to exercise such number of votes per share as is permitted
by the Stock Exchange, up to the maximum number of votes attached to each
Class A Share.
Save and except for the rights, preferences, privileges and restrictions set out in this
Appendix, the Class A Shares and the Class B Shares shall rank pari passu in all
other respects and shall have the same rights, preferences, privileges and
restrictions.
– IV-3 –

(c) Variation of rights of existing shares or classes of shares
The Company shall not vary the rights of the Class A Shares so as to increase the
number of votes to which each Class A Share is entitled.
Subject to the Cayman Companies Act, if at any time the share capital of the
Company is divided into different classes of shares, all or any of the special rights
attached to any class of shares may (unless otherwise provided for by the terms of
issue of the shares of that class) be varied, modified or abrogated with the consent
in writing of the holders of at least three-fourths of the issued Shares of that class,
or with the approval of a resolution passed by at least three-fourths of the votes cast
by the holders of the Shares of that class present and voting in person or by proxy
at a separate meeting of such holders. The provisions of the Articles relating to
general meetings shall apply mutatis mutandis to every such separate general
meeting, provided that the necessary quorum shall be two persons together holding
(or, in the case of a shareholder being a corporation, by its duly authorised
representative), or representing by proxy at least one-third of the issued shares of
that class. Every holder of shares of the class shall be entitled on a poll to one vote
for every such share held by him, and any holder of shares of the class present in
person or by proxy may demand a poll.
For so long as any Class A Share is in issue and unless such change is otherwise
required by law or the Listing Rules, (a) any change to the composition of the Board
set out in paragraph 2.2(a) below; (b) any change in the proportion of votes required
to pass a resolution of the shareholders, whether as an ordinary resolution or a
special resolution or in respect of particular matters or generally; (c) any variation
to the number of votes attached to a share of any class, except any such variation
arising from an automatic conversion of a Class A Share into a Class B Share
pursuant to paragraph 2.1(b) above; and (d) any change to this sub-paragraph, to the
matters in respect of which each Class A Share and each Class B Share shall entitle
its holder to one vote on a poll at a general meeting as summarised in paragraph 2.1
(b) above, or any change to the quorum requirements for meetings of the directors
as summarised in paragraph 2.3 below, shall require the consent in writing of the
holders of not less than three-fourths in nominal value of the issued Class A Shares.
Any special rights conferred upon the holders of any shares or class of shares shall
not, unless otherwise expressly provided in the rights attaching to the terms of issue
of such shares, be deemed to be varied by the creation or issue of further shares
ranking pari passu therewith.
(d) Alteration of capital
The Company may, by an ordinary resolution of its members: (a) increase its share
capital by the creation of new shares of such amount as it thinks expedient;
(b) consolidate or divide all or any of its share capital into shares of a larger or
smaller amount than its existing shares; (c) divide its unissued shares into several
classes and attach to such shares any preferential, deferred, qualified or special
rights, privileges or conditions; (d) subdivide its shares or any of them into shares
of an amount smaller than that fixed by the Memorandum; (e) cancel any shares
which, at the date of the resolution, have not been taken or agreed to be taken by any
person and diminish the amount of its share capital by the amount of the shares so
cancelled; (f) make provision for the allotment and issue of shares which do not
carry any voting rights; (g) change the currency of denomination of its share capital;
and (h) reduce its share premium account in any manner authorised and subject to
any conditions prescribed by law.
– IV-4 –

(e) Transfer of shares
Subject to the Cayman Companies Act and the requirements of the Stock Exchange,
all transfers of shares shall be effected by an instrument of transfer in the usual or
common form or in such other form as the Board may approve and may be under
hand or, if the transferor or transferee is a Clearing House (as defined in the Articles)
or its nominee(s), under hand or by machine imprinted signature, or by such other
manner of execution as the Board may approve from time to time.
Execution of the instrument of transfer shall be by or on behalf of the transferor and

the transferee, provided that the Board may dispense with the execution of the
instrument of transfer by the transferor or transferee or accept mechanically
executed transfers. The transferor shall be deemed to remain the holder of a share
until the name of the transferee is entered in the register of members of the Company
in respect of that share.
The Board may, in its absolute discretion, at any time and from time to time remove
any share on the principal register to any branch register or any share on any branch
register to the principal register or any other branch register.
Unless the Board otherwise agrees, no shares on the principal register shall be
removed to any branch register nor shall shares on any branch register be removed
to the principal register or any other branch register. All removals and other
documents of title shall be lodged for registration and registered, in the case of
shares on any branch register, at the relevant registration office and, in the case of
shares on the principal register, at the place at which the principal register is located.
The Board may, in its absolute discretion, decline to register a transfer of any share
(not being a fully paid up share) to a person of whom it does not approve or on which
the Company has a lien, or if the proposed transfer does not comply with the Articles
or any requirements of the Listing Rules. It may also decline to register a transfer
of any share issued under any share option scheme upon which a restriction on
transfer subsists or a transfer of any share to more than four joint holders.
The Board may decline to recognise any instrument of transfer unless a certain fee,
up to such maximum sum as the Stock Exchange may determine to be payable, is
paid to the Company, the instrument of transfer is properly stamped (if applicable),
is in respect of only one class of share and is lodged at the relevant registration
office or the place at which the principal register is located accompanied by the
relevant share certificate(s) and such other evidence as the Board may reasonably
require is provided to show the right of the transferor to make the transfer (and if
the instrument of transfer is executed by some other person on his behalf, the
authority of that person so to do).
The register of members may, subject to the Listing Rules, be closed in accordance
with the terms equivalent to the relevant section of the Hong Kong Companies
Ordinance at such time or for such period not exceeding in the whole 30 days in each
year as the Board may determine (or such longer period as the members of the
Company may by ordinary resolution determine, provided that such period shall not
be extended beyond 60 days in any year).
Fully paid shares shall be free from any restriction on transfer (except when
permitted by the Stock Exchange) and shall also be free from all liens.
– IV-5 –

(f) Power of the Company to purchase its own shares
The Company may purchase its own shares subject to certain restrictions and the
Board may only exercise this power on behalf of the Company subject to any
applicable requirement imposed from time to time by the Articles or any code, rules
or regulations issued from time to time by the Stock Exchange and/or the Securities
and Futures Commission of Hong Kong.
Where the Company purchases for redemption a redeemable share, purchases not
made through the market or by tender shall be limited to a maximum price and, if
purchases are by tender, tenders shall be available to all members alike.
In the event the Company reduces the number of Class B Shares in issue through a
purchase of its own shares, the holders of Class A Shares shall reduce their voting
rights in the Company proportionately, whether through a conversion of a portion of
their Class A Shares or otherwise, if the reduction in the number of Class B Shares
in issue would otherwise result in an increase in the proportion of Class A Shares to
the total number of shares in issue.
(g) Power of any subsidiary of the Company to own shares in the Company
There are no provisions in the Articles relating to the ownership of shares in the
Company by a subsidiary.
(h) Calls on shares and forfeiture of shares
The Board may, from time to time, make such calls as it thinks fit upon the members
in respect of any monies unpaid on the shares held by them respectively (whether on
account of the nominal value of the shares or by way of premium) and not by the
conditions of allotment of such shares made payable at fixed times. A call may be
made payable either in one sum or by instalments. If the sum payable in respect of
any call or instalment is not paid on or before the day appointed for payment thereof,
the person or persons from whom the sum is due shall pay interest on the same at
such rate not exceeding 20 per cent per annum as the Board shall fix from the day
appointed for payment to the time of actual payment, but the Board may waive
payment of such interest wholly or in part. The Board may, if it thinks fit, receive
from any member willing to advance the same, either in money or money’s worth,
all or any part of the money uncalled and unpaid or instalments payable upon any
shares held by him, and in respect of all or any of the monies so advanced the
Company may pay interest at such rate (if any) not exceeding 20 per cent per annum
as the Board may decide.
If a member fails to pay any call or instalment of a call on the day appointed for
payment, the Board may, for so long as any part of the call or instalment remains
unpaid, serve not less than 14 days’ notice on the member requiring payment of so
much of the call or instalment as is unpaid, together with any interest which may
have accrued and which may still accrue up to the date of actual payment. The notice
shall name a further day (not earlier than the expiration of 14 days from the date of
the notice) on or before which the payment required by the notice is to be made, and
shall also name the place where payment is to be made. The notice shall also state
that, in the event of non-payment at or before the appointed time, the shares in
respect of which the call was made will be liable to be forfeited.
– IV-6 –

If the requirements of any such notice are not complied with, any share in respect
of which the notice has been given may at any time thereafter, before the payment
required by the notice has been made, be forfeited by a resolution of the Board to
that effect. Such forfeiture will include all dividends and bonuses declared in respect
of the forfeited share and not actually paid before the forfeiture.
A person whose shares have been forfeited shall cease to be a member in respect of
the forfeited shares but shall, nevertheless, remain liable to pay to the Company all
monies which, as at the date of forfeiture, were payable by him to the Company in
respect of the shares together with (if the Board shall in its discretion so require)
interest thereon from the date of forfeiture until payment at such rate not exceeding
20 per cent per annum as the Board may prescribe.
2.2 Directors
(a) Appointment, retirement and removal
At any time or from time to time, the Board shall have the power to appoint any
person as a Director either to fill a casual vacancy on the Board or as an additional
Director to the existing Board subject to any maximum number of Directors, if any,
as may be determined by the members in general meeting or the Articles. Any
Director so appointed to fill a casual vacancy or as an addition to the existing Board
shall hold office only until the first annual general meeting of the Company after his
appointment and be eligible for re-election at such meeting. Any Director so
appointed by the Board shall not be taken into account in determining the Directors
or the number of Directors who are to retire by rotation at an annual general
meeting.
At each annual general meeting, one-third of the Directors for the time being shall
retire from office by rotation. However, if the number of Directors is not a multiple
of three, then the number nearest to but not less than one-third shall be the number
of retiring Directors. Every Director (including those appointed for a specific term
and the independent non-executive Directors) shall be subject to retirement by
rotation at least once every three years. The Directors to retire in each year shall be
those who have been in office longest since their last re-election or appointment but,
as between persons who became or were last re-elected Directors on the same day,
those to retire shall (unless they otherwise agree among themselves) be determined
by lot.
No person, other than a retiring Director, shall, unless recommended by the Board
for election, be eligible for election to the office of Director at any general meeting,
unless notice in writing of the intention to propose that person for election as a
Director and notice in writing by that person of his willingness to be elected has
been lodged at the head office or at the registration office of the Company. The
Company shall include the particulars of such proposed person for election as a
Director in its announcement or supplementary circular, and shall give the
shareholders at least seven days to consider the relevant information disclosed in
such announcement or supplementary circular prior to the date of the meeting of the
election.
– IV-7 –

A Director is not required to hold any shares in the Company by way of qualification
nor is there any specified upper or lower age limit for Directors either for accession
to or retirement from the Board.
A Director may be removed by an ordinary resolution of the members of the

Company before the expiration of his term of office (but without prejudice to any
claim which such Director may have for damages for any breach of any contract
between him and the Company) and the Company may by ordinary resolution
appoint another in his place (including a managing director or other executive
director). Any Director so appointed shall be subject to the retirement by rotation
provisions. The number of Directors shall not be less than two.
The office of a Director shall be vacated if he:
(i) resigns;
(ii) dies;
(iii) is declared to be of unsound mind and the Board resolves that his office be
vacated;
(iv) becomes bankrupt or has a receiving order made against him or suspends
payment or compounds with his creditors generally;
(v) he is prohibited from being or ceases to be a director by operation of law;
(vi) without special leave, is absent from meetings of the Board for six consecutive
months, and the Board resolves that his office is vacated;
(vii) has been required by the stock exchange of the Relevant Territory (as defined
in the Articles) to cease to be a Director; or
(viii) is removed from office by no less than three-fourths in number of the Directors
pursuant to the Articles.
From time to time the Board may appoint one or more of the Directors to be
managing director, joint managing director or deputy managing director or to hold
any other employment or executive office with the Company for such period and
upon such terms as the Board may determine, and the Board may revoke or
terminate any of such appointments. The Board may also delegate any of its powers
to committees consisting of such Director(s) or other person(s) as the Board thinks
fit, and from time to time it may also revoke such delegation or revoke the
appointment of and discharge any such committees either wholly or in part, and
either as to persons or purposes, but every committee so formed shall, in the exercise
of the powers so delegated, conform to any regulations that may from time to time
be imposed upon it by the Board.
The appointment or re-appointment of Directors, including independent non-

executive Directors, must be subject to the recommendation of the nomination
committee.
– IV-8 –

(b) Power to allot and issue shares and warrants
Subject to the provisions of the Cayman Companies Act, the Memorandum and
Articles and without prejudice to any special rights conferred on the holders of any
shares or class of shares, any share may be issued with or have attached to it such
rights, or such restrictions, whether with regard to dividend, voting, return of capital
or otherwise, as the Company may by ordinary resolution determine (or, in the
absence of any such determination or so far as the same may not make specific
provision, as the Board may determine). Any share may be issued on terms that,
upon the happening of a specified event or upon a given date and either at the option
of the Company or the holder of the share, it is liable to be redeemed.
The Board may issue warrants to subscribe for any class of shares or other securities
of the Company on such terms as it may from time to time determine.
Where warrants are issued to bearer, no certificate in respect of such warrants shall
be issued to replace one that has been lost unless the Board is satisfied beyond
reasonable doubt that the original certificate has been destroyed and the Company
has received an indemnity in such form as the Board thinks fit with regard to the
issue of any such replacement certificate.
Subject to the provisions of the Cayman Companies Act, the Articles and, where
applicable, the rules of any stock exchange of the Relevant Territory and without
prejudice to any special rights or restrictions for the time being attached to any
shares or any class of shares, all unissued shares in the Company shall be at the
disposal of the Board, which may offer, allot, grant options over or otherwise
dispose of them to such persons, at such times, for such consideration and on such
terms and conditions as it in its absolute discretion thinks fit, provided that no shares
shall be issued at a discount.
Neither the Company nor the Board shall be obliged, when making or granting any
allotment of, offer of, option over or disposal of shares, to make, or make available,
any such allotment, offer, option or shares to members or others whose registered
addresses are in any particular territory or territories where, in the absence of a
registration statement or other special formalities, doing so is or may, in the opinion
of the Board, be unlawful or impracticable. However, no member affected as a result
of the foregoing shall be, or be deemed to be, a separate class of members for any
purpose whatsoever.
(c) Power to dispose of the assets of the Company or any of its subsidiaries
While there are no specific provisions in the Articles relating to the disposal of the
assets of the Company or any of its subsidiaries, the Board may exercise all powers
and do all acts and things which may be exercised or done or approved by the
Company and which are not required by the Articles or the Cayman Companies Act
to be exercised or done by the Company in general meeting, but if such power or act
is regulated by the Company in general meeting, such regulation shall not invalidate
any prior act of the Board which would have been valid if such regulation had not
been made.
– IV-9 –

(d) Borrowing powers
The Board may exercise all the powers of the Company to raise or borrow money,
to mortgage or charge all or any part of the undertaking, property and uncalled
capital of the Company and, subject to the Cayman Companies Act, to issue
debentures, debenture stock, bonds and other securities of the Company, whether
outright or as collateral security for any debt, liability or obligation of the Company
or of any third party.
(e) Remuneration
The Directors shall be entitled to receive, as ordinary remuneration for their

services, such sums as shall from time to time be determined by the Board or the
Company in general meeting, as the case may be, such sum (unless otherwise
directed by the resolution by which it is determined) to be divided among the
Directors in such proportions and in such manner as they may agree or, failing
agreement, either equally or, in the case of any Director holding office for only a
portion of the period in respect of which the remuneration is payable, pro rata. The
Directors shall also be entitled to be repaid all expenses reasonably incurred by them
in attending any Board meetings, committee meetings or general meetings or
otherwise in connection with the discharge of their duties as Directors. Such
remuneration shall be in addition to any other remuneration to which a Director who
holds any salaried employment or office in the Company may be entitled by reason
of such employment or office.
Any Director who, at the request of the Company, performs services which in the
opinion of the Board go beyond the ordinary duties of a Director may be paid such
special or extra remuneration as the Board may determine, in addition to or in
substitution for any ordinary remuneration as a Director. An executive Director
appointed to be a managing director, joint managing director, deputy managing
director or other executive officer shall receive such remuneration and such other
benefits and allowances as the Board may from time to time decide. Such
remuneration shall be in addition to his ordinary remuneration as a Director.
The Board may establish, either on its own or jointly in concurrence or agreement
with subsidiaries of the Company or companies with which the Company is
associated in business, or may make contributions out of the Company’s monies to,
any schemes or funds for providing pensions, sickness or compassionate allowances,
life assurance or other benefits for employees (which expression as used in this and
the following paragraph shall include any Director or former Director who may hold
or have held any executive office or any office of profit with the Company or any
of its subsidiaries) and former employees of the Company and their dependents or
any class or classes of such persons.
The Board may also pay, enter into agreements to pay or make grants of revocable
or irrevocable, whether or not subject to any terms or conditions, pensions or other
benefits to employees and former employees and their dependents, or to any of such
persons, including pensions or benefits additional to those, if any, to which such
employees or former employees or their dependents are or may become entitled
under any such scheme or fund as mentioned above. Such pension or benefit may,
if deemed desirable by the Board, be granted to an employee either before and in
anticipation of, or upon or at any time after, his actual retirement.
– IV-10 –

(f) Compensation or payments for loss of office
Payments to any present Director or past Director of any sum by way of

compensation for loss of office or as consideration for or in connection with his
retirement from office (not being a payment to which the Director is contractually
or statutorily entitled) must be approved by the Company in general meeting.
(g) Loans and provision of security for loans to Directors
The Company shall not directly or indirectly make a loan to a Director or a director
of any holding company of the Company or any of their respective close associates,
enter into any guarantee or provide any security in connection with a loan made by
any person to a Director or a director of any holding company of the Company or
any of their respective close associates, or, if any one or more Directors hold(s)
(jointly or severally or directly or indirectly) a controlling interest in another
company, make a loan to that other company or enter into any guarantee or provide
any security in connection with a loan made by any person to that other company.
(h) Disclosure of interest in contracts with the Company or any of its subsidiaries
With the exception of the office of auditor of the Company, a Director may hold any
other office or place of profit with the Company in conjunction with his office of
Director for such period and upon such terms as the Board may determine, and may
be paid such extra remuneration for that other office or place of profit, in whatever
form, in addition to any remuneration provided for by or pursuant to any other
Articles. A Director may be or become a director, officer or member of any other
company in which the Company may be interested, and shall not be liable to account
to the Company or the members for any remuneration or other benefits received by
him as a director, officer or member of such other company. The Board may also
cause the voting power conferred by the shares in any other company held or owned
by the Company to be exercised in such manner in all respects as it thinks fit,
including the exercise in favour of any resolution appointing the Directors or any of
them to be directors or officers of such other company.
No Director or intended Director shall be disqualified by his office from contracting

with the Company, nor shall any such contract or any other contract or arrangement
in which any Director is in any way interested be liable to be avoided, nor shall any
Director so contracting or being so interested be liable to account to the Company
for any profit realised by any such contract or arrangement by reason only of such
Director holding that office or the fiduciary relationship established by it. A Director
who is, in any way, materially interested in a contract or arrangement or proposed
contract or arrangement with the Company shall declare the nature of his interest at
the earliest meeting of the Board at which he may practically do so.
There is no power to freeze or otherwise impair any of the rights attaching to any
share by reason that the person or persons who are interested directly or indirectly
in that share have failed to disclose their interests to the Company.
– IV-11 –

A Director shall not vote or be counted in the quorum on any resolution of the Board
in respect of any contract or arrangement or proposal in which he or any of his close
associate(s) has/have a material interest, and if he shall do so his vote shall not be
counted nor shall he be counted in the quorum for that resolution. This prohibition
shall not apply to any of the following matters:
(i) the giving of any security or indemnity to the Director or his close associate(s)
in respect of money lent or obligations incurred or undertaken by him or any
of them at the request of or for the benefit of the Company or any of its
subsidiaries;
(ii) the giving of any security or indemnity to a third party in respect of a debt or
obligation of the Company or any of its subsidiaries for which the Director or
his close associate(s) has/have himself/themselves assumed responsibility in
whole or in part whether alone or jointly under a guarantee or indemnity or by
the giving of security;
(iii) any proposal concerning an offer of shares, debentures or other securities of or

by the Company or any other company which the Company may promote or be
interested in for subscription or purchase, where the Director or his close
associate(s) is/are or is/are to be interested as a participant in the underwriting
or sub-underwriting of the offer;
(iv) any proposal or arrangement concerning the benefit of employees of the

Company or any of its subsidiaries, including the adoption, modification or
operation of either: (i) any employees’ share scheme or any share incentive or
share option scheme under which the Director or his close associate(s) may
benefit; or (ii) any of a pension fund or retirement, death or disability benefits
scheme which relates to Directors, their close associates and employees of the
Company or any of its subsidiaries and does not provide in respect of any
Director or his close associate(s) any privilege or advantage not generally
accorded to the class of persons to which such scheme or fund relates; and
(v) any contract or arrangement in which the Director or his close associate(s)
is/are interested in the same manner as other holders of shares, debentures or
other securities of the Company by virtue only of his/their interest in those
shares, debentures or other securities.
(i) Independent non-executive Directors
The role of an independent non-executive Director shall include, but is not limited
to:
(i) participating in Board meetings to bring an independent judgment to bear on

issues of strategy, policy, performance, accountability, resources, key
appointments and standards of conduct;
(ii) taking the lead where potential conflicts of interests arise;
(iii) serving on the audit, remuneration, nomination and corporate governance

committees, if invited; and
– IV-12 –

(iv) scrutinising the Company’s performance in achieving agreed corporate goals

and objectives, and monitoring performance reporting.
The independent non-executive Directors shall give the Board and any committees
on which they serve the benefit of their skills, expertise and varied backgrounds and
qualifications through regular attendance and active participation. They should also
attend general meetings and develop a balanced understanding of the views of the
members.
The independent non-executive Directors shall make a positive contribution to the

development of the Company’s strategy and policies through independent,
constructive and informed comments.
2.3 Proceedings of the Board
The Board may meet anywhere in the world for the despatch of business and may adjourn
and otherwise regulate its meetings as it thinks fit. Questions arising at any meeting shall
be determined by a majority of votes. In the case of an equality of votes, the chairman of
the meeting shall have a second or casting vote.
2.4 Alterations to the constitutional documents and the Company’s name
To the extent that the same is permissible under the Cayman Islands laws and subject to
the Articles, the Memorandum and Articles of the Company may only be altered or
amended, and the name of the Company may only be changed, with the sanction of a
special resolution of the Company.
2.5 Meetings of members
(a) Special and ordinary resolutions
A special resolution of the Company must be passed by a majority of not less than
three-fourths of the voting rights held by such members as, being entitled so to do,
vote in person or by proxy or, in the case of members which are corporations, by
their duly authorised representatives or by proxy at a general meeting of which
notice specifying the intention to propose the resolution as a special resolution has
been duly given.
Under the Cayman Companies Act, a copy of any special resolution must be
forwarded to the Registrar of Companies in the Cayman Islands within 15 days of
being passed.
An ordinary resolution, by contrast, is a resolution passed by a simple majority of

the votes of such members of the Company as, being entitled to do so, vote in person
or, in the case of members which are corporations, by their duly authorised
representatives or by proxy at a general meeting of which notice has been duly
given.
A resolution in writing signed by or on behalf of all members shall be treated as an

ordinary resolution duly passed at a general meeting of the Company duly convened
and held, and where relevant as a special resolution so passed.
– IV-13 –

(b) Voting rights and right to demand a poll
Subject to any special rights, restrictions or privileges as to voting for the time being
attached to any class or classes of shares at any general meeting: (a) on a poll every
member present in person or by proxy or, in the case of a member being a
corporation, by its duly authorised representative shall have one vote for every share
which is fully paid or credited as fully paid registered in his name in the register of
members of the Company, provided that no amount paid up or credited as paid up
on a share in advance of calls or instalments is treated for this purpose as paid up
on the share; and (b) on a show of hands every member who is present in person (or,
in the case of a member being a corporation, by its duly authorised representative)
or by proxy shall have one vote. Where more than one proxy is appointed by a
member which is a Clearing House or its nominee(s), each such proxy shall have one
vote on a show of hands. On a poll, a member entitled to more than one vote need
not use all his votes or cast all the votes he does use in the same way.
At any general meeting a resolution put to the vote of the meeting is to be decided
by poll save that the chairman of the meeting may, pursuant to the Listing Rules,
allow a resolution to be voted on by a show of hands. Where a show of hands is
allowed, before or on the declaration of the result of the show of hands, a poll may
be demanded by (in each case by members present in person or by proxy or by a duly
authorised corporate representative):
(i) at least two members;
(ii) any member or members representing not less than one-tenth of the total voting
rights of all the members having the right to vote at the meeting; or
(iii) a member or members holding shares in the Company conferring a right to vote
at the meeting on which an aggregate sum has been paid equal to not less than
one-tenth of the total sum paid up on all the shares conferring that right.
Should a Clearing House or its nominee(s) be a member of the Company, it may

appoint proxies or authorise such person or persons as it thinks fit to act as its
representative(s), who enjoy rights equivalent to the rights of other members, at any
meeting of the Company (including but not limited to general meetings and creditors
meetings) or at any meeting of any class of members of the Company provided that,
if more than one person is so authorised, the authorisation shall specify the number
and class of shares in respect of which each such person is so authorised. A person
authorised in accordance with this provision shall be deemed to have been duly
authorised without further evidence of the facts and be entitled to exercise the same
rights and powers on behalf of the Clearing House or its nominee(s) as if such
person were an individual member, including the right to speak and vote
individually on a show of hands or on a poll.
– IV-14 –

All Shareholders of the Company (including a Shareholder which is a Clearing

House (or its nominee(s)) shall have the right to (a) speak at a general meeting and
(b) vote at a general meeting except where a Shareholder is required by the Listing
Rules to abstain from voting to approve the matter under consideration. Where any
member is, under the Listing Rules, required to abstain from voting on any
particular resolution or restricted to voting only for or only against any particular
resolution, in which case any votes cast by or on behalf of such member in
contravention of such requirement or restriction shall not be counted.
(c) Annual general meetings
The Company must hold an annual general meeting in each financial year. Such
meeting must be held within six months after the end of the Company’s financial
year.
(d) Notices of meetings and business to be conducted
An annual general meeting of the Company shall be called by at least 21 days’ notice
in writing, and any other general meeting of the Company shall be called by at least
14 days’ notice in writing. The notice shall be exclusive of the day on which it is
served or deemed to be served and of the day for which it is given, and must specify
the time, place and agenda of the meeting and particulars of the resolution(s) to be
considered at that meeting and, in the case of special business, the general nature of
that business.
Except where otherwise expressly stated, any notice or document (including a share
certificate) to be given or issued under the Articles shall be in writing, and may be
served by the Company on any member personally, by post to such member’s
registered address or (in the case of a notice) by advertisement in the newspapers.
Any member whose registered address is outside Hong Kong may notify the
Company in writing of an address in Hong Kong which shall be deemed to be his
registered address for this purpose. Subject to the Cayman Companies Act and the
Listing Rules, a notice or document may also be served or delivered by the Company
to any member by electronic means.
Although a meeting of the Company may be called by shorter notice than as

specified above, if permitted by the Listing Rules, such meeting may be deemed to
have been duly called if it is so agreed:
(i) in the case of an annual general meeting, by all members of the Company
entitled to attend and vote thereat; and
(ii) in the case of any other meeting, by a majority in number of the members
having a right to attend and vote at the meeting holding not less than 95 per
cent of the total voting rights in the Company.
All business transacted at an extraordinary general meeting shall be deemed special

business. All business shall also be deemed special business where it is transacted
at an annual general meeting, with the exception of certain routine matters which
shall be deemed ordinary business.
– IV-15 –

(e) Quorum for meetings and separate class meetings
No business shall be transacted at any general meeting unless a quorum is present

when the meeting proceeds to business, and continues to be present until the
conclusion of the meeting.
The quorum for a general meeting shall be two members present in person (or in the
case of a member being a corporation, by its duly authorised representative) or by
proxy and entitled to vote. In respect of a separate class meeting (other than an
adjourned meeting) convened to sanction the modification of class rights, the
necessary quorum shall be two persons holding or representing by proxy not less
than one-third in nominal value of the issued shares of that class.
(f) Proxies
Any member of the Company entitled to attend and vote at a meeting of the
Company is entitled to appoint another person as his proxy to attend and vote instead
of him. A corporation which is a member may execute a form of proxy under the
hand of a duly authorised officer. A member who is the holder of two or more shares
may appoint more than one proxy to represent him and vote on his behalf at a
general meeting of the Company or at a class meeting. A proxy need not be a
member of the Company and shall be entitled to exercise the same powers on behalf
of a member who is an individual and for whom he acts as proxy as such member
could exercise. In addition, a proxy shall be entitled to exercise the same powers on
behalf of a member which is a corporation and for which he acts as proxy as such
member could exercise as if it were an individual member present in person at any
general meeting. On a poll or on a show of hands, votes may be given either
personally (or, in the case of a member being a corporation, by its duly authorised
representative) or by proxy.
The instrument appointing a proxy shall be in writing under the hand of the
appointor or of his attorney duly authorised in writing, or if the appointor is a
corporation, either under seal or under the hand of a duly authorised officer or
attorney. Every instrument of proxy, whether for a specified meeting or otherwise,
shall be in such form as the Board may from time to time approve, provided that it
shall not preclude the use of the two-way form. Any form issued to a member for
appointing a proxy to attend and vote at an extraordinary general meeting or at an
annual general meeting at which any business is to be transacted shall be such as to
enable the member, according to his intentions, to instruct the proxy to vote in
favour of or against (or, in default of instructions, to exercise his discretion in
respect of) each resolution dealing with any such business.
(g) Members’ requisition for meetings
One or more members holding, as at the date of deposit of the requisition, in

aggregate not less than one-tenth of the voting rights (on a one vote per share basis)
in the share capital of the Company may also make a requisition to convene an
extraordinary general meeting and/or add resolutions to the agenda of a meeting.
Such requisition shall be made in writing to the Board or the secretary of the
Company for the purpose of requiring an extraordinary general meeting to be called
by the Board for the transaction of any business specified in such requisition. Such
– IV-16 –

meeting shall be held within two months after the deposit of such requisition. If
within 21 days of such deposit, the Board fails to proceed to convene such meeting,
the requisitionist(s) himself (themselves) may do so in the same manner, and all
reasonable expenses incurred by the requisitionist(s) as a result of the failure of the
Board shall be reimbursed to the requisitionist(s) by the Company.
2.6 Accounts and audit
The Board shall cause proper books of account to be kept of the sums of money received
and expended by the Company, and of the assets and liabilities of the Company and of all
other matters required by the Cayman Companies Act (which include all sales and
purchases of goods by the Company) necessary to give a true and fair view of the state
of the Company’s affairs and to show and explain its transactions.
The books of accounts of the Company shall be kept at the head office of the Company
or at such other place or places as the Board decides and shall always be open to
inspection by any Director. No member (other than a Director) shall have any right to
inspect any account, book or document of the Company except as conferred by the
Cayman Companies Act or ordered by a court of competent jurisdiction or authorised by
the Board or the Company in general meeting.
The Board shall from time to time cause to be prepared and laid before the Company at
its annual general meeting balance sheets and profit and loss accounts (including every
document required by law to be annexed thereto), together with a copy of the Directors’
report and a copy of the auditors’ report, not less than 21 days before the date of the
annual general meeting. Copies of these documents shall be sent to every person entitled
to receive notices of general meetings of the Company under the provisions of the Articles
together with the notice of annual general meeting, not less than 21 days before the date
of the meeting.
Subject to the rules of the stock exchange of the Relevant Territory, the Company may
send summarised financial statements to shareholders who have, in accordance with the
rules of the stock exchange of the Relevant Territory, consented and elected to receive
summarised financial statements instead of the full financial statements. The summarised
financial statements must be accompanied by any other documents as may be required
under the rules of the stock exchange of the Relevant Territory, and must be sent to those
shareholders that have consented and elected to receive the summarised financial
statements not less than 21 days before the general meeting.
The members shall appoint auditor(s) to hold office by an ordinary resolution of the
members until the conclusion of the next annual general meeting on such terms and with
such duties as may be agreed with the Board. The auditors’ remuneration shall be fixed
by the members in general meeting by an ordinary resolution of the members or by the
Board if authority is so delegated by the members. The members may, at any general
meeting convened and held in accordance with the Articles, remove the auditors by
ordinary resolution at any time before the expiration of the term of office and shall, by
ordinary resolution, at that meeting appoint new auditors in their place for the remainder
of the term.
– IV-17 –

The auditors shall audit the financial statements of the Company in accordance with
generally accepted accounting principles of Hong Kong, the International Accounting
Standards or such other standards as may be permitted by the Stock Exchange.
2.7 Dividends and other methods of distribution
The Company in general meeting may declare dividends in any currency to be paid to the
members but no dividend shall be declared in excess of the amount recommended by the
Board.
Except in so far as the rights attaching to, or the terms of issue of, any share may
otherwise provide:
(a) all dividends shall be declared and paid according to the amounts paid up on the
shares in respect of which the dividend is paid, although no amount paid up on a
share in advance of calls shall for this purpose be treated as paid up on the share;
(b) all dividends shall be apportioned and paid pro rata in accordance with the amount
paid up on the shares during any portion(s) of the period in respect of which the
dividend is paid; and
(c) the Board may deduct from any dividend or other monies payable to any member all
sums of money (if any) presently payable by him to the Company on account of
calls, instalments or otherwise.
Where the Board or the Company in general meeting has resolved that a dividend should
be paid or declared, the Board may resolve:
(i) that such dividend be satisfied wholly or in part in the form of an allotment of shares
credited as fully paid up, provided that the members entitled to such dividend will
be entitled to elect to receive such dividend (or part thereof) in cash in lieu of such
allotment; or
(ii) that the members entitled to such dividend will be entitled to elect to receive an
allotment of shares credited as fully paid up in lieu of the whole or such part of the
dividend as the Board may think fit.
Upon the recommendation of the Board, the Company may by ordinary resolution in
respect of any one particular dividend of the Company determine that it may be satisfied
wholly in the form of an allotment of shares credited as fully paid up without offering any
right to members to elect to receive such dividend in cash in lieu of such allotment.
Any dividend, bonus or other sum payable in cash to the holder of shares may be paid by
cheque or warrant sent through the post. Every such cheque or warrant shall be made
payable to the order of the person to whom it is sent and shall be sent at the holder’s or
joint holders’ risk and payment of the cheque or warrant by the bank on which it is drawn
shall constitute a good discharge to the Company. Any one of two or more joint holders
may give effectual receipts for any dividends or other monies payable or property
distributable in respect of the shares held by such joint holders.
– IV-18 –

Whenever the Board or the Company in general meeting has resolved that a dividend be
paid or declared, the Board may further resolve that such dividend be satisfied wholly or
in part by the distribution of specific assets of any kind.
The Board may, if it thinks fit, receive from any member willing to advance the same, and
either in money or money’s worth, all or any part of the money uncalled and unpaid or
instalments payable upon any shares held by him, and in respect of all or any of the
monies so advanced may pay interest at such rate (if any) not exceeding 20 per cent per
annum, as the Board may decide. A payment in advance of a call shall not entitle the
member to receive any dividend or to exercise any other rights or privileges as a member
in respect of the share or the due portion of the shares upon which payment has been
advanced by such member before it is called up.
All dividends, bonuses or other distributions unclaimed for one year after having been
declared may be invested or otherwise used by the Board for the benefit of the Company
until claimed and the Company shall not be constituted a trustee in respect thereof. All
dividends, bonuses or other distributions unclaimed for six years after having been
declared may be forfeited by the Board and, upon such forfeiture, shall revert to the
Company.
No dividend or other monies payable by the Company on or in respect of any share shall
bear interest against the Company.
The Company may exercise the power to cease sending cheques for dividend entitlements
or dividend warrants by post if such cheques or warrants remain uncashed on two
consecutive occasions or after the first occasion on which such a cheque or warrant is
returned undelivered.
2.8 Inspection of corporate records
For so long as any part of the share capital of the Company is listed on the Stock
Exchange, any member may inspect any register of members of the Company maintained
in Hong Kong (except when the register of members is closed in accordance with the
terms equivalent to the relevant section of the Hong Kong Companies Ordinance) without
charge and require the provision to him of copies or extracts of such register in all
respects as if the Company were incorporated under and were subject to the Hong Kong
Companies Ordinance.
2.9 Rights of minorities in relation to fraud or oppression
There are no provisions in the Articles concerning the rights of minority members in
relation to fraud or oppression. However, certain remedies may be available to members
of the Company under the Cayman Islands laws, as summarised in paragraph 3.6 of this
Appendix.
– IV-19 –

2.10 Procedures on liquidation
A resolution that the Company be wound up by the court or be wound up voluntarily shall
be a special resolution.
Subject to any special rights, privileges or restrictions as to the distribution of available

surplus assets on liquidation for the time being attached to any class or classes of shares:
(a) if the Company is wound up and the assets available for distribution among the
members of the Company are more than sufficient to repay the whole of the capital
paid up at the commencement of the winding up, then the excess shall be distributed
pari passu among such members in proportion to the amount paid up on the shares
held by them respectively; and
(b) if the Company is wound up and the assets available for distribution among the
members as such are insufficient to repay the whole of the paid-up capital, such
assets shall be distributed so that, as nearly as may be, the losses shall be borne by
the members in proportion to the capital paid up on the shares held by them,
respectively.
If the Company is wound up (whether the liquidation is voluntary or compelled by the

court), the liquidator may, with the sanction of a special resolution and any other sanction
required by the Cayman Companies Act, divide among the members in specie or kind the
whole or any part of the assets of the Company, whether the assets consist of property of
one kind or different kinds, and the liquidator may, for such purpose, set such value as
he deems fair upon any one or more class or classes of property to be so divided and may
determine how such division shall be carried out as between the members or different
classes of members and the members within each class. The liquidator may, with the like
sanction, vest any part of the assets in trustees upon such trusts for the benefit of members
as the liquidator thinks fit, provided that no member shall be compelled to accept any
shares or other property upon which there is a liability.
2.11 Subscription rights reserve
Provided that it is not prohibited by and is otherwise in compliance with the Cayman
Companies Act, if warrants to subscribe for shares have been issued by the Company and
the Company does any act or engages in any transaction which would result in the
subscription price of such warrants being reduced below the par value of the shares to be
issued on the exercise of such warrants, a subscription rights reserve shall be established
and applied in paying up the difference between the subscription price and the par value
of such shares.
3. COMPANY LAWS OF THE CAYMAN ISLANDS
The Company was incorporated in the Cayman Islands as an exempted company on

October 24, 2019 subject to the Cayman Companies Act. Certain provisions of the
company laws of the Cayman Islands are set out below but this section does not purport
to contain all applicable qualifications and exceptions or to be a complete review of all
matters of the company laws of the Cayman Islands, which may differ from equivalent
provisions in jurisdictions with which interested parties may be more familiar.
– IV-20 –

3.1 Company operations
An exempted company such as the Company must conduct its operations mainly outside
the Cayman Islands. An exempted company is also required to file an annual return each
year with the Registrar of Companies of the Cayman Islands and pay a fee which is based
on the amount of its authorised share capital.
3.2 Share capital
Under the Cayman Companies Act, a Cayman Islands company may issue ordinary,
preference or redeemable shares or any combination thereof. Where a company issues
shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount
or value of the premiums on those shares shall be transferred to an account, to be called
the share premium account. At the option of a company, these provisions may not apply
to premiums on shares of that company allotted pursuant to any arrangements in
consideration of the acquisition or cancellation of shares in any other company and issued
at a premium. The share premium account may be applied by the company subject to the
provisions, if any, of its memorandum and articles of association, in such manner as the
company may from time to time determine including, but without limitation, the
following:
(a) paying distributions or dividends to members;
(b) paying up unissued shares of the company to be issued to members as fully paid
bonus shares;
(c) any manner provided in section 37 of the Cayman Companies Act;
(d) writing-off the preliminary expenses of the company; and
(e) writing-off the expenses of, or the commission paid or discount allowed on, any
issue of shares or debentures of the company.
Notwithstanding the foregoing, no distribution or dividend may be paid to members out

of the share premium account unless, immediately following the date on which the
distribution or dividend is proposed to be paid, the company will be able to pay its debts
as they fall due in the ordinary course of business.
Subject to confirmation by the court, a company limited by shares or a company limited

by guarantee and having a share capital may, if authorised to do so by its articles of
association, by special resolution reduce its share capital in any way.
3.3 Financial assistance to purchase shares of a company or its holding company
There are no statutory prohibitions in the Cayman Islands on the granting of financial
assistance by a company to another person for the purchase of, or subscription for, its
own, its holding company’s or a subsidiary’s shares. Therefore, a company may provide
financial assistance provided the directors of the company, when proposing to grant such
financial assistance, discharge their duties of care and act in good faith, for a proper
purpose and in the interests of the company. Such assistance should be on an arm’s-length
basis.
– IV-21 –

3.4 Purchase of shares and warrants by a company and its subsidiaries
A company limited by shares or a company limited by guarantee and having a share

capital may, if so authorised by its articles of association, issue shares which are to be
redeemed or are liable to be redeemed at the option of the company or a member and, for
the avoidance of doubt, it shall be lawful for the rights attaching to any shares to be
varied, subject to the provisions of the company’s articles of association, so as to provide
that such shares are to be or are liable to be so redeemed. In addition, such a company
may, if authorised to do so by its articles of association, purchase its own shares,
including any redeemable shares; an ordinary resolution of the company approving the
manner and terms of the purchase will be required if the articles of association do not
authorise the manner and terms of such purchase. A company may not redeem or purchase
its shares unless they are fully paid. Furthermore, a company may not redeem or purchase
any of its shares if, as a result of the redemption or purchase, there would no longer be
any issued shares of the company other than shares held as treasury shares. In addition,
a payment out of capital by a company for the redemption or purchase of its own shares
is not lawful unless, immediately following the date on which the payment is proposed
to be made, the company shall be able to pay its debts as they fall due in the ordinary
course of business.
Shares that have been purchased or redeemed by a company or surrendered to the

company shall not be treated as cancelled but shall be classified as treasury shares if held
in compliance with the requirements of section 37A(1) of the Cayman Companies Act.
Any such shares shall continue to be classified as treasury shares until such shares are
either cancelled or transferred pursuant to the Cayman Companies Act.
A Cayman Islands company may be able to purchase its own warrants subject to and in
accordance with the terms and conditions of the relevant warrant instrument or certificate.
Thus there is no requirement under the laws of the Cayman Islands that a company’s
memorandum or articles of association contain a specific provision enabling such
purchases. The directors of a company may under the general power contained in its
memorandum of association be able to buy, sell and deal in personal property of all kinds.
A subsidiary may hold shares in its holding company and, in certain circumstances, may
acquire such shares.
3.5 Dividends and distributions
Subject to a solvency test, as prescribed in the Cayman Companies Act, and the
provisions, if any, of the company’s memorandum and articles of association, a company
may pay dividends and distributions out of its share premium account. In addition, based
upon English case law which is likely to be persuasive in the Cayman Islands, dividends
may be paid out of profits.
For so long as a company holds treasury shares, no dividend may be declared or paid, and
no other distribution (whether in cash or otherwise) of the company’s assets (including
any distribution of assets to members on a winding up) may be made, in respect of a
treasury share.
– IV-22 –

3.6 Protection of minorities and shareholders’ suits
It can be expected that the Cayman Islands courts will ordinarily follow English case law
precedents (particularly the rule in the case of Foss vs. Harbottle and the exceptions to
that rule) which permit a minority member to commence a representative action against
or derivative actions in the name of the company to challenge acts which are ultra vires,
illegal, fraudulent (and performed by those in control of the Company) against the
minority, or represent an irregularity in the passing of a resolution which requires a
qualified (or special) majority which has not been obtained.
Where a company (not being a bank) is one which has a share capital divided into shares,
the court may, on the application of members holding not less than one-fifth of the shares
of the company in issue, appoint an inspector to examine the affairs of the company and,
at the direction of the court, to report on such affairs. In addition, any member of a
company may petition the court, which may make a winding up order if the court is of
the opinion that it is just and equitable that the company should be wound up.
In general, claims against a company by its members must be based on the general laws
of contract or tort applicable in the Cayman Islands or be based on potential violation of
their individual rights as members as established by a company’s memorandum and
articles of association.
3.7 Disposal of assets
There are no specific restrictions on the power of directors to dispose of assets of a

company, however, the directors are expected to exercise certain duties of care, diligence
and skill to the standard that a reasonably prudent person would exercise in comparable
circumstances, in addition to fiduciary duties to act in good faith, for proper purpose and
in the best interests of the company under English common law (which the Cayman
Islands courts will ordinarily follow).
3.8 Accounting and auditing requirements
A company must cause proper records of accounts to be kept with respect to: (i) all sums
of money received and expended by it; (ii) all sales and purchases of goods by it; and (iii)
its assets and liabilities.
Proper books of account shall not be deemed to be kept if there are not kept such books
as are necessary to give a true and fair view of the state of the company’s affairs and to
explain its transactions.
If a company keeps its books of account at any place other than at its registered office or
any other place within the Cayman Islands, it shall, upon service of an order or notice by
the Tax Information Authority pursuant to the Tax Information Authority Act
(2021 Revision) of the Cayman Islands, make available, in electronic form or any other
medium, at its registered office copies of its books of account, or any part or parts thereof,
as are specified in such order or notice.
– IV-23 –

3.9 Exchange control
There are no exchange control regulations or currency restrictions in effect in the Cayman
Islands.
3.10 Taxation
The Cayman Islands currently levy no taxes on individuals or corporations based upon
profits, income, gains or appreciations and there is no taxation in the nature of inheritance
tax or estate duty. There are no other taxes likely to be material to the Company levied
by the Government of the Cayman Islands save for certain stamp duties which may be
applicable, from time to time, on certain instruments.
3.11 Stamp duty on transfers
No stamp duty is payable in the Cayman Islands on transfers of shares of Cayman Islands
companies save for those which hold interests in land in the Cayman Islands.
3.12 Loans to directors
There is no express provision prohibiting the making of loans by a company to any of its
directors. However, the company’s articles of association may provide for the prohibition
of such loans under specific circumstances.
3.13 Inspection of corporate records
The members of a company have no general right to inspect or obtain copies of the
register of members or corporate records of the company. They will, however, have such
rights as may be set out in the company’s articles of association.
3.14 Register of members
A Cayman Islands exempted company may maintain its principal register of members and
any branch registers in any country or territory, whether within or outside the Cayman
Islands, as the company may determine from time to time. There is no requirement for an
exempted company to make any returns of members to the Registrar of Companies in the
Cayman Islands. The names and addresses of the members are, accordingly, not a matter
of public record and are not available for public inspection. However, an exempted
company shall make available at its registered office, in electronic form or any other
medium, such register of members, including any branch register of member, as may be
required of it upon service of an order or notice by the Tax Information Authority
pursuant to the Tax Information Authority Act (2021 Revision) of the Cayman Islands.
3.15 Register of directors and officers
Pursuant to the Cayman Companies Act, the Company is required to maintain at its
registered office a register of directors, alternate directors and officers. The Registrar of
Companies shall make available the list of the names of the current directors of the
Company (and, where applicable, the current alternate directors of the Company) for
inspection by any person upon payment of a fee by such person. A copy of the register
– IV-24 –

of directors and officers must be filed with the Registrar of Companies in the Cayman
Islands, and any change must be notified to the Registrar of Companies within 30 days
of any change in such directors or officers, including a change of the name of such
directors or officers.
3.16 Winding up
A Cayman Islands company may be wound up by: (i) an order of the court; (ii) voluntarily
by its members; or (iii) under the supervision of the court.
The court has authority to order winding up in a number of specified circumstances

including where, in the opinion of the court, it is just and equitable that such company be
so wound up.
A voluntary winding up of a company (other than a limited duration company, for which
specific rules apply) occurs where the company resolves by special resolution that it be
wound up voluntarily or where the company in general meeting resolves that it be wound
up voluntarily because it is unable to pay its debt as they fall due. In the case of a
voluntary winding up, the company is obliged to cease to carry on its business from the
commencement of its winding up except so far as it may be beneficial for its winding up.
Upon appointment of a voluntary liquidator, all the powers of the directors cease, except
so far as the company in general meeting or the liquidator sanctions their continuance.
In the case of a members’ voluntary winding up of a company, one or more liquidators

are appointed for the purpose of winding up the affairs of the company and distributing
its assets.
As soon as the affairs of a company are fully wound up, the liquidator must make a report
and an account of the winding up, showing how the winding up has been conducted and
the property of the company disposed of, and call a general meeting of the company for
the purposes of laying before it the account and giving an explanation of that account.
When a resolution has been passed by a company to wind up voluntarily, the liquidator
or any contributory or creditor may apply to the court for an order for the continuation
of the winding up under the supervision of the court, on the grounds that: (i) the company
is or is likely to become insolvent; or (ii) the supervision of the court will facilitate a more
effective, economic or expeditious liquidation of the company in the interests of the
contributories and creditors. A supervision order takes effect for all purposes as if it was
an order that the company be wound up by the court except that a commenced voluntary
winding up and the prior actions of the voluntary liquidator shall be valid and binding
upon the company and its official liquidator.
For the purpose of conducting the proceedings in winding up a company and assisting the
court, one or more persons may be appointed to be called an official liquidator(s).The
court may appoint to such office such person or persons, either provisionally or otherwise,
as it thinks fit, and if more than one person is appointed to such office, the court shall
declare whether any act required or authorised to be done by the official liquidator is to
be done by all or any one or more of such persons. The court may also determine whether
any and what security is to be given by an official liquidator on his appointment; if no
official liquidator is appointed, or during any vacancy in such office, all the property of
the company shall be in the custody of the court.
– IV-25 –

3.17 Reconstructions
Reconstructions and amalgamations may be approved by (i) 75% in value of the members
or class of members or (ii) a majority in number representing 75% in value of the
creditors or class of creditors, in each case depending on the circumstances, as are present
at a meeting called for such purpose and thereafter sanctioned by the Grand Court of the
Cayman Islands. Whilst a dissenting member has the right to express to the court his view
that the transaction for which approval is being sought would not provide the members
with a fair value for their shares, it can be expected that the court would approve the
transaction if it is satisfied that (i) the company is not proposing to act illegally or beyond
the scope of our corporate authority and the statutory provisions as to majority vote have
been complied with, (ii) the members have been fairly represented at the meeting in
question, (iii) the transaction is such as a businessman would reasonable approve and (iv)
the transaction is not one that would more properly be sanctioned under some other
provisions of the Companies Act or that would amount to a “fraud on the minority”. If the
transaction is approved, no dissenting member would have any rights comparable to the
appraisal rights (namely the right to receive payment in cash for the judicially determined
value of his shares), which may be available to dissenting members of corporations in
other jurisdictions.
3.18 Take-overs
Where an offer is made by a company for the shares of another company and, within four
months of the offer, the holders of not less than 90 per cent of the shares which are the
subject of the offer accept, the offeror may, at any time within two months after the
expiration of that four-month period, by notice require the dissenting members to transfer
their shares on the terms of the offer. A dissenting member may apply to the Cayman
Islands courts within one month of the notice objecting to the transfer. The burden is on
the dissenting member to show that the court should exercise its discretion, which it will
be unlikely to do unless there is evidence of fraud or bad faith or collusion as between
the offeror and the holders of the shares who have accepted the offer as a means of
unfairly forcing out minority members.
3.19 Indemnification
The laws of the Cayman Islands do not limit the extent to which a company’s articles of
association may provide for indemnification of officers and directors, save to the extent
any such provision may be held by the court to be contrary to public policy, for example,
where a provision purports to provide indemnification against the consequences of
committing a crime.
3.20 Economic Substance
The Cayman Islands enacted the International Tax Co-operation (Economic Substance)
Act (2021 Revision) together with the Guidance Notes published by the Cayman Islands
Tax Information Authority from time to time. The Company is required to comply with
the economic substance requirements from July 1, 2019 and make an annual report in the
Cayman Islands as to whether or not it is carrying on any relevant activities and if it is,
it must satisfy an economic substance test.
– IV-26 –

4. GENERAL
Harney Westwood & Riegels, the Company’s legal adviser on the laws of the Cayman
Islands, have sent to the Company a letter of advice summarising certain aspects of the
Cayman Companies Act. This letter, together with a copy of the Cayman Companies Act,
is available for inspection as referred to in the paragraph headed “Documents delivered
to the registrar of companies and on display” in Appendix VI to this document. Any
person wishing to have a detailed summary of the Cayman Companies Act or advice on
the differences between it and the laws of any jurisdiction with which he is more familiar
is recommended to seek independent legal advice.
– IV-27 –
APPENDIX V STATUTORY AND GENERAL INFORMATION
1. FURTHER INFORMATION ABOUT OUR GROUP
1.1 Incorporation of our Company
We were incorporated in the Cayman Islands under the Cayman Companies Act as an exempted
company with limited liability on October 24, 2019. We have established a principal place of
business in Hong Kong at 5/F, Manulife Place, 348 Kwun Tong Road, Kowloon, Hong Kong,
and registered with the Registrar of Companies in Hong Kong as a non-Hong Kong company
under Part 16 of the Companies Ordinance on March 31, 2022 under the same address. Ms. Yin
Shan Hui has been appointed as the authorized representative of our Company for the
acceptance of service of process and notices on behalf of the Company in Hong Kong. The
address for service of process is 5/F, Manulife Place, 348 Kwun Tong Road, Kowloon, Hong
Kong.
As we were incorporated in the Cayman Islands, our operations are subject to the Cayman
Companies Act as well as the Memorandum of Association and Articles of Association. A
summary of the relevant aspects of the Cayman Companies Act and certain provisions of the
Memorandum of Association and Articles of Association is set out in “Summary of the
Constitution of Our Company and the Company Laws of the Cayman Islands” in Appendix IV
to this document.
1.2 Changes in the share capital of our Company
Our Company was incorporated with an authorized share capital of US$50,000 divided into
5,000,000,000 Ordinary Shares with a par value of US$0.00001 each.
The following sets out the changes in the share capital of our Company during the two years
immediately preceding the date of this document:
(a) On September 25, 2021, we issued 7,827,888 Class A Ordinary Shares, each with a par
value of US$0.00001, to Woncher Holding Limited.
(b) In October 2021, the Company redesignated and reclassified 212,765,236 Class A
Ordinary Shares into Series C1 Preferred Shares, and 72,250,382 Class A Ordinary Shares
into Series C2 Preferred Shares. On October 29, 2021, we issued an aggregate of
123,058,094 Series C1 Preferred Shares, each with a par value of US$0.00001, to Deep
Red Holdings Limited, TB Racing Rabbits Investment Holdings L.P., Eternal Earn
Holding Limited, D1 SPV Master Holdco I (Hong Kong) Limited, D1 SPV Jupiter (Hong
Kong) Limited, GCM Grosvenor JT SPV, LLC, AMF-9 Holdings Limited, JNRY III
HOLDINGS LIMITED, Jallion Global Limited, Ultra Height Fund L.P., Dahlia
Investments Pte. Ltd., SC GGF III Holdco, Ltd., Portland Street Partners Limited and SAI
Growth Fund I, LLLP.
(c) On November 16, 2021, we issued 2,836,870 Series C1 Preferred Shares to LINK
Delivery Investment Limited.
(d) On December 8, 2021, we issued 3,546,087 Series C1 Preferred Shares to Hidden Hill
SPV VIII.
(e) On December 31, 2021, we repurchased an aggregate of 24,440,890 Shares from Topping
Summit Limited, Strict Forward Limited, Square Lord Limited, LONG ORIGIN
LIMITED, STARLIGHT HERO LIMITED, EASY INNOVATION LIMITED, LONG
SHINING LIMITED, Super Explorer Investment Limited, Joyous Sound Limited,
– V-1 –
Ambitious River Limited, Team Spirit Group Limited, Grow Profit Enterprises Limited,
Vast Admire Limited, Fast Rabbit Global Limited, Joyous Tempinis Limited, Fast
Creative Zone Limited, Jaunty Global Limited, Rhododendron Investment Limited, JNRY
III HOLDINGS LIMITED, SC GGF III Holdco, Ltd, Vast Elegance Limited, BLESSED
TIGER LIMITED, ZWC JT Investment Limited and XN Origin International Limited.
We issued an aggregate of 29,050,803 Shares, each with a par value of US$0.00001, to

Ultra Height Fund L.P., Speedy Innovation L.P. and Yimeter Holding Limited on the same
day.
(f) On January 19, 2022, we issued 8,510,609 Series C1 Preferred Shares to Parallel Cluster
Investment Limited.
(g) On January 29, 2022, we repurchased an aggregate of 10,394,682 Shares from Topping
Ambitious River Limited, Fast Rabbit Global Limited, Team Spirit Group Limited, Grow
Profit Enterprises Limited, Vast Admire Limited, Joyous Tempinis Limited, Fast Creative
Zone Limited, Jaunty Global Limited, Rhododendron Investment Limited, JNRY III
HOLDINGS LIMITED, SC GGF III Holdco, Ltd, Vast Elegance Limited, BLESSED
TIGER LIMITED, ZWC JT Investment Limited and XN Origin International Limited.
We issued 10,394,682 Series C2 Preferred Shares, each with a par value of US$0.00001,
to Tickking Holding Limited on the same day.
(h) On February 28, 2022, we issued an aggregate of 3,900,696 Series C1 Preferred Shares,
each with a par value of US$0.00001, to Hidden Hill Investment 123 and Tranquility
Ventures Limited.
(i) On March 2, 2022, we repurchased an aggregate of 13,772,356 Shares from Jumping

Ambitious River Limited, Team Spirit Group Limited, Grow Profit Enterprises Limited,
Vast Admire Limited, Fast Rabbit Global Limited, Joyous Tempinis Limited, Fast
Creative Zone Limited, Jaunty Global Limited, Rhododendron Investment Limited, JNRY
III HOLDINGS LIMITED, SC GGF III Holdco, Ltd, Vast Elegance Limited, BLESSED
TIGER LIMITED, ZWC JT Investment Limited and XN Origin International Limited. On
the same day, 709,217 Series C1 Preferred Shares held by Jallion Global Limited were
surrendered and cancelled.
We issued 13,772,356 Series C2 Preferred Shares, each with a par value of US$0.00001,
to Yimeter Holding Limited on the same day.
(j) On March 3, 2022, we issued 1,060,915 Series C1 Preferred Shares, each with a par value
of US$0.00001, to Hidden Hill Investment 112.
(k) On March 21, 2022, we issued 614,057 Series C1 Preferred Shares to Ultra Height Fund
L.P and 22,287,975 Class A Ordinary Shares each with a par value of US$0.00001 each
to Jumping Summit Limited. The Class A Ordinary Shares issued to Jumping Summit
Limited were converted to Class B Ordinary Shares on the same day.
– V-2 –
(l) On April 8, 2022, we issued 1,474,280 Class A Ordinary Shares to Woncher Holding
Limited.
(m) On August 25, 2022, we repurchased an aggregate of 6,920,379 Shares from Uranus
Holding Limited. We completed the issuance of 6,920,379 Series C2 Preferred Shares to
Precision World Limited on the same day.
(n) On September 28, 2022, we issued 38,000,000 Class A Ordinary Shares to NP Investment
Platform Limited.
(o) On September 30, 2022, we repurchased an aggregate of 1,449,568 Shares from Super
Explorer Investment Limited, Top Valley Limited, Lead Sky Capital Limited and
Constant Power Investment Limited.
(p) On May 17, 2023, the Company’s share capital was reclassified and re-designated as
follows: i) 3,719,302,324 Class A Ordinary Shares of par value of USD0.00001 each; (ii)
195,866,682 Class B Ordinary Shares of par value of USD0.00001 each; (iii) 74,666,665
Series Pre-A1 Preferred Shares of par value of USD0.00001 each; (iv) 54,266,667 Series
Pre-A2 Preferred Shares of par value of USD0.00001 each; (v) 269,921,165 Series A
Preferred Shares of par value of USD0.00001 each; (vi) 22,462,293 Series B Preferred
Shares of par value of USD0.00001 each; (vii) 255,864,131 Series B+ Preferred Shares
of par value of USD0.00001 each; (viii) 266,173,696 Series C1 Preferred Shares of par
value of USD0.00001 each; (ix) 115,332,586 Series C2 Preferred Shares of par value of
USD0.00001 each; and (x) 26,143,791 Series D Preferred Shares of par value of
USD0.00001 each.
(q) On May 17, 2023, we issued: (i) 24,557,934 Class B Ordinary Shares to Jumping Summit
Limited; (ii) 261,438 Class A Ordinary Shares to Woncher Holding Limited; (iii) an
aggregate of 118,745,672 Series C1 Preferred Shares to Deep Red Holdings Limited, TB
RACING RABBITS INVESTMENTS HOLDINGS L.P., Eternal Earn Holding Limited,
D1 SPV Master Holdco I (Hong Kong) Limited, D1 SPV Jupiter (Hong Kong) Limited,
GCM Grosvenor JT SPV, LLC, AMF-9 Holdings Limited, JNRY III HOLDINGS
LIMITED, Jallion Global Limited, Ultra Height Fund L.P., DAHLIA INVESTMENTS
PTE. LTD., SC GGF III Holdco, Ltd., Portland Street Partners Limited, SAI Growth Fund
I, LLLP, LINK Delivery Investment Limited, Hidden Hill SPV VIII, Speedy Innovation
L.P., Parallel Cluster Investment Limited, Hidden Hill Investment 123, Tranquility
Ventures Limited and Hidden Hill Investment 112; (iv) an aggregate of 43,082,204 Series
C2 Preferred Shares to Yimeter Holding Limited, Tickking Holding Limited, LINK
Delivery Investment Limited, China Logistic Investment Holding (11) Limited, China
Logistic Investment Holding (12) Limited, Uranus Holding Limited (excluding the
redesignation and reclassification of 16,722,075 Series C2 Shares) and Precision World
Limited; and (v) 26,143,791 Series D Preferred Shares to CELESTIAL OCEAN
INVESTMENTS LIMITED.
Save as disclosed above and in this document, there has been no alteration in the authorized
or issued share capital of our Company during the two years immediately preceding the date
of this document.
– V-3 –
1.3 Changes in the share capital of our major subsidiaries and operating entities
A summary of the corporate information and the particulars of our subsidiaries are set out in
note 18b to the Accountant’s Report as set out in Appendix I to this document.
Our Company [was granted] a waiver from strict compliance with the requirements of
paragraph 26 of Part A of Appendix 1 to the Listing Rules in respect of disclosing the
particulars of any alterations in the capital of any member of our Group within two years
immediately preceding the issue of this Document. For details, see “Waivers – Waiver in
relation to the disclosure requirements with respect to changes in share capital”. There has been
no alteration in the share capital of the major subsidiaries and operating entities within the two
years immediately preceding the date of this document.
1.4 Substantial shareholders of other members of the Group
So far as is known to any Director or chief executive of the Company, as at the Latest
Practicable Date, the following persons are directly or indirectly interested in 10% or more of
the issued voting shares of the following major subsidiaries of the Company:
Approximate
Percentage of
Name of Subsidiary Name of Shareholder Ownership
Infinity Jet Holding Limited Suteemon Aggarwal 51%

J&T Express (Fujian) Supply Chain Chongqing Jiesheng Supply 15%
Management Co., Ltd. Chain Technology Co., Ltd
J&T Express (Hebei) Acme Supply Chain Chongqing Jiehong Supply 15%
J&T Express (Henan) Acme Supply Chain Chongqing Jieben Supply 15%
J&T Express (Shandong) Supply Chain Chongqing Qiyue Supply 15%
Co., Ltd. Chain Technology Co., Ltd
J&T Express (Jieyang) Supply Chain Chongqing Zhujie Supply 15%
To the best of their knowledge, our Directors are not aware of any arrangement which may at
a subsequent date result in a change of control of our Company or any other member of our
Group.
– V-4 –
1.5 Resolutions passed in the meeting of our Shareholders dated [●]
Pursuant to the written resolutions of our Shareholders passed on [●], resolutions were passed
under which, among other things:
(i) the Memorandum and the Articles of Association were conditionally approved and
adopted with effect from the [REDACTED];
(ii) conditional on: (a) the [REDACTED] granting approval of the [REDACTED] of, and
permission to deal in, the Shares in issue and to be issued as mentioned in this document;
(b) the [REDACTED] being duly determined among our Company and the
[REDACTED] (for themselves and on behalf of the [REDACTED]); and (c) the
obligations of the [REDACTED] under the [REDACTED] becoming unconditional and
not being terminated in accordance with the terms of the [REDACTED] or otherwise, in
each case on or before the dates as may be specified in the [REDACTED]:
(a) the Reclassification, Redesignation and Share Subdivision were approved;
(b) the [REDACTED] (including the [REDACTED]) was approved, and the proposed
allotment and issue of the [REDACTED] under the [REDACTED] were approved,
and the Directors were authorized to determine the [REDACTED] for, and to allot
and issue the [REDACTED];
(c) a general unconditional mandate was given to our Directors to exercise all powers
of our Company to allot, issue and deal with Class B Shares or securities convertible
into Class B Shares and to make or grant offers, agreements or options (including
any warrants, bonds, notes and debentures conferring any rights to subscribe for or
otherwise receive Class B Shares) which might require Class B Shares to be allotted
and issued or dealt with subject to the requirement that the aggregate nominal value
of the Class B Shares so allotted and issued or agreed conditionally or
unconditionally to be allotted and issued, otherwise than by way of the
[REDACTED], rights issue or pursuant to the exercise of any subscription rights
attaching to any warrants which may be allotted and issued by the Company from
time to time or, pursuant to the exercise of any options which may be granted under
the allotment and issue of Class B Shares in lieu of the whole or part of a dividend
on Class B Shares in accordance with the Articles of Association on a specific
authority granted by our Shareholders in general meeting, shall not exceed 20% of
the aggregate nominal value of the Shares in issue immediately following the
completion of the [REDACTED], excluding any Class B Shares to be issued
pursuant to the exercise of the [REDACTED] and Class B Shares to be issued upon
conversion of Class A Shares into Class B Shares on a one to one basis;
(d) a general unconditional mandate (the “Repurchase Mandate”) was given to our
Directors to exercise all powers of our Company to repurchase on the Stock
Exchange or on any other stock exchange on which the securities of our Company
may be listed and which is recognised by the SFC and the Stock Exchange for this
purpose, such number of Shares as will represent up to 10% of the total number of
Shares in issue immediately following the completion of the [REDACTED],
excluding any Class B Shares to be sold, or issued and allotted pursuant to the
exercise of the [REDACTED] and Class B Shares to be issued upon conversion of
Class A Shares into Class B Shares on a one to one basis; and
– V-5 –
(e) the Repurchase Mandate was extended by the addition to the aggregate nominal
value of the Shares which may be allotted and issued or agreed to be allotted and
issued by our Directors pursuant to such general mandate of an amount representing
the aggregate nominal value of the Shares purchased by our Company pursuant to
the mandate to purchase Shares referred to in paragraph (e) above (up to 10% of the
aggregate nominal value of the Shares in issue immediately following the
completion of the [REDACTED], excluding any Class B Shares to be sold, or
issued and allotted pursuant to the exercise of the [REDACTED] and Class B
Shares to be issued upon conversion of Class A Shares into Class B Shares on a one
to one basis.
Each of the general mandates referred to in sub-paragraphs (d), (e), and (f) above will remain
in effect until whichever is the earliest of:
• the conclusion of the next annual general meeting of our Company;
• the expiration of the period within which the next annual general meeting of our Company
is required to be held by any applicable law or the Articles of Association; and
• the time when such mandate is revoked or varied by an ordinary resolution of the
Shareholders in general meeting.
1.6 Explanatory statement on repurchase of our own securities
The following paragraphs include, among others, certain information required by the Stock
Exchange to be included in this document concerning the repurchase of our own securities.
Provision of the Listing Rules
The Listing Rules permit companies with a primary listing on the Stock Exchange to
repurchase their own securities on the Stock Exchange subject to certain restrictions, the most
important of which are summarised below:
Shareholders’ Approval
All proposed repurchases of securities (which must be fully paid up in the case of shares) by
a company with a primary [REDACTED] on the Stock Exchange must be approved in advance
by an ordinary resolution of the shareholders in a general meeting, either by way of general
mandate or by specific approval of a particular transaction.
Pursuant to a resolution passed by our Shareholders on [●], the Repurchase Mandate was given
to our Directors authorising them to exercise all the powers of our Company to repurchase
Shares on the Stock Exchange, or on any other stock exchange on which the securities of our
Company may be listed and which is recognised by the SFC and the Stock Exchange for this
purpose, such number of Shares as will represent up to 10% of the total number of Shares in
issue immediately following the completion of the [REDACTED] (excluding any Class B
Shares to be sold, or issued and allotted pursuant to the exercise of the [REDACTED] and
Class B Shares to be issued upon conversion of Class A Shares into Class B Shares on a one
to one basis), with such mandate to expire at the earliest of (i) the conclusion of the next annual
general meeting of our Company (ii) the expiration of the period within which the next annual
general meeting of our Company is required to be hold by any applicable law or the Articles
of Association, and (iii) the date when it is varied or revoked by an ordinary resolution of our
Shareholders in general meeting.
– V-6 –
Source of funds
Purchases must be funded out of funds legally available for the purpose in accordance with the
Memorandum and Articles of Association and the applicable Laws of Hong Kong and the
Cayman Islands. A listed company may not purchase its own securities on the Stock Exchange
for a consideration other than cash or for settlement otherwise than in accordance with the
trading rules of the Stock Exchange from time to time. As a matter of the laws of the Cayman
Islands, any purchases by the Company may be made out of profits or out of the proceeds of
a new issue of shares made for the purpose of the purchase or from sums standing to the credit
of our share premium account or out of capital, if so authorised by the Articles of Association
and subject to the Cayman Companies Act. Any premium payable on the purchase over the par
value of the shares to be purchased must have been provided for out of profits or from sums
standing to the credit of our share premium account or out of capital, if so authorised by the
Articles of Association and subject to the Cayman Companies Act.
Trading restrictions
The total number of shares which a listed company may repurchase on the Stock Exchange is
the number of shares representing up to a maximum of 10% of the aggregate number of shares
in issue. A company may not issue or announce a proposed issue of new securities for a period
of 30 days immediately following a repurchase (other than an issue of securities pursuant to
an exercise of warrants, share options or similar instruments requiring the company to issue
securities which were outstanding prior to such repurchase) without the prior approval of the
Stock Exchange. In addition, a listed company is prohibited from repurchasing its shares on the
Stock Exchange if the purchase price is 5% or more than the average closing market price for
the five preceding trading days on which its shares were traded on the Stock Exchange.
The Listing Rules also prohibit a listed company from repurchasing its securities if the
repurchase would result in the number of listed securities which are in the hands of the public
falling below the relevant prescribed minimum percentage as required by the Stock Exchange.
A company is required to procure that the broker appointed by it to effect a repurchase of
securities discloses to the Stock Exchange such information with respect to the repurchase as
the Stock Exchange may require.
Status of repurchased Shares
The [REDACTED] of all purchased securities (whether on the Stock Exchange or otherwise)
is automatically cancelled and the relative certificates must be cancelled and destroyed. Under
the laws of the Cayman Islands, unless, prior to the purchase the directors of the Company
resolve to hold the shares purchased by the Company as treasury shares, shares purchased by
the Company shall be treated as cancelled and the amount of the Company’s issued share
capital shall be diminished by the nominal value of those shares. However, the purchase of
shares will not be taken as reducing the amount of the authorised share capital under the laws
of the Cayman Islands.
Suspension of repurchase
A listed company may not make any repurchase of securities after a price sensitive
development has occurred or has been the subject of a decision until such time as the price
sensitive information has been made publicly available. In particular, during the period of one
month immediately preceding the earlier of (a) the date of the board meeting (as such date is
first notified to the Stock Exchange in accordance with the Listing Rules) for the approval of
a listed company’s results for any year, half-year, quarterly or any other interim period
– V-7 –
(whether or not required under the Listing Rules) and the deadline for publication of an
announcement of a listed company’s results for any year or half-year under the Listing Rules,
or quarterly or any other interim period (whether or not required under the Listing Rules), the
listed company may not repurchase its shares on the Stock Exchange other than in exceptional
circumstances. In addition, the Stock Exchange may prohibit a repurchase of securities on the
Stock Exchange if a listed company has breached the Listing Rules.
Reporting requirements
Certain information relating to repurchases of securities on the Stock Exchange or otherwise

must be reported to the Stock Exchange not later than 30 minutes before the earlier of the
commencement of the morning trading session or any pre-opening session on the following
business day. In addition, a listed company’s annual report is required to disclose details
regarding repurchases of securities made during the year, including a monthly analysis of the
number of securities repurchased, the purchase price per share or the highest and lowest price
paid for all such repurchases, where relevant, and the aggregate prices paid.
Core connected persons
The Listing Rules prohibit a company from knowingly purchasing securities on the Stock
Exchange from a “core connected person”, that is, a director, chief executive or substantial
shareholder of the company or any of its subsidiaries or a close associate of any of them (as
defined in the Listing Rules) and a core connected person shall not knowingly sell their
securities to the company.
Reasons for repurchases
Our Directors believe that it is in the best interests of our Company and Shareholders for our
Directors to have a general authority from the Shareholders to enable our Company to
repurchase Shares in the market. Such repurchases may, depending on market conditions and
funding arrangements at the time, lead to an enhancement of the net asset value per Share
and/or earnings per Share and will only be made where our Directors believe that such
repurchases will benefit our Company and Shareholders.
Funding of repurchases
Repurchase of the Shares must be funded out of funds legally available for such purpose in
accordance with the Articles of Association and the applicable laws of the Cayman Islands. Our
Directors may not repurchase the Shares on the Stock Exchange for a consideration other than
cash or for settlement otherwise than in accordance with the trading rules of the Stock
Exchange. Subject to the foregoing, our Directors may make repurchases with profits of the
Company or out of a new issuance of shares made for the purpose of the repurchase or from
sums standing to the credit of our share premium account or, if authorised by the Articles of
Association and subject to the Cayman Companies Act, out of capital and, in the case of any
premium payable on the repurchase, out of profits of the Company or from sums standing to
the credit of the share premium account of the Company or, if authorised by the Articles of
Association and subject to the Cayman Companies Act, out of capital.
However, our Directors do not propose to exercise the general mandate to such an extent as
would, in the circumstances, have a material adverse effect on the working capital requirements
of the Company or its gearing levels which, in the opinion of our Directors, are from time to
time appropriate for the Company.
– V-8 –
General
The exercise in full of the Repurchase Mandate, on the basis of [REDACTED] Shares in issue
immediately following the completion of the [REDACTED] (assuming that (i) the
[REDACTED] is not exercised and (ii) the Reclassification, Redesignation and Share
Subdivision are completed), could accordingly result in up to approximately [REDACTED]
Shares being repurchased by our Company during the period prior to the earliest of:
• the conclusion of the next annual general meeting of our Company unless renewed by an
ordinary resolution of our Shareholders in a general meeting, either unconditionally or
subject to conditions;
• the expiration of the period within which the next annual general meeting of our Company
is required to be held by any applicable law or the Articles of Association; and
• the date when it is varied or revoked by an ordinary resolution of our Shareholders in

general meeting.
None of our Directors nor, to the best of their knowledge having made all reasonable enquiries,
any of their associates currently intends to sell any Shares to our Company.
Our Directors have undertaken to the Stock Exchange that, so far as the same may be
applicable, they will exercise the Repurchase Mandate in accordance with the Listing Rules
and the applicable laws in the Cayman Islands.
If, as a result of any repurchase of Shares, a Shareholder’s proportionate interest in the voting
rights of our Company increases, such increase will be treated as an acquisition for the
purposes of the Takeovers Code. Accordingly, a Shareholder or a group of Shareholders acting
in concert could obtain or consolidate control of our Company and become obliged to make a
mandatory offer in accordance with Rule 26 of the Takeovers Code. Save as aforesaid, our
Directors are not aware of any consequences which would arise under the Takeovers Code as
a consequence of any repurchases pursuant to the Repurchase Mandate.
Any repurchase of Shares that results in the number of Shares held by the public being reduced
to less than 25% of the Shares then in issue or such other minimum percentage prescribed by
the Stock Exchange could only be implemented if the Stock Exchange agreed to waive the
Listing Rules requirements regarding the public shareholding referred to above. It is believed
that a waiver of this provision would not normally be granted other than in exceptional
circumstances.
No core connected person of our Company has notified our Company that they have a present
intention to sell Shares to our Company, or have undertaken not to do so, if the Repurchase
Mandate is exercised.
– V-9 –
2. FURTHER INFORMATION ABOUT OUR BUSINESS
2.1 Summary of material contracts
The following contracts (not being contracts entered into in the ordinary course of business)
were entered into by our Company, our subsidiaries or Consolidated Affiliated Entities within
the two years preceding the date of this document and are or may be material as well as
contracts required to be disclosed pursuant to the Stock Exchange’s Listing Decision
HKEX-LD43-3:
(1) an exclusive business cooperation agreement dated January 18, 2023 entered into among
Chongqing Yunqing and Shanghai Yishangshiye, pursuant to which Chongqing Yunqing
agreed to provide exclusive technical and business support and consultation services to
Shanghai Yishangshiye in return for service fees;
(2) an exclusive option agreement dated January 18, 2023 entered into among Chongqing
Yunqing, Mr. Liu Wei (劉偉), Ms. Wu Rongmei (吳蓉眉) and Shanghai Yishangshiye,
pursuant to which Mr. Liu Wei (劉偉) and Ms. Wu Rongmei (吳蓉眉) agreed to grant
Chongqing Yunqing or its designated person(s) an exclusive and irrevocable option to
purchase from Mr. Liu Wei (劉偉) and Ms. Wu Rongmei (吳蓉眉) all or part of their
equity interests in Shanghai Yishangshiye and from Shanghai Yishangshiye all or any part
of the assets of Shanghai Yishangshiye and its subsidiaries;
(3) a loan agreement dated January 18, 2023 entered into among Chongqing Yunqing, Mr. Liu
Wei (劉偉) and Ms. Wu Rongmei (吳蓉眉), pursuant to which Chongqing Yunqing enjoys
the right of the creditor against Mr. Liu Wei (劉偉) and Ms. Wu Rongmei (吳蓉眉) in an
aggregate amount of RMB10 million (the “Loans”), and such Loans have been used for
contribution to paid-in capital of Shanghai Yishangshiye;
(4) a shareholder rights proxy agreement dated January 18, 2023, entered into among
Chongqing Yunqing, Mr. Liu Wei (劉偉), Ms. Wu Rongmei (吳蓉眉) and Shanghai
Yishangshiye, pursuant to which Mr. Liu Wei (劉偉) and Ms. Wu Rongmei (吳蓉眉)
appoints Chongqing Yunqing or its designated persons to exercise all of the rights as
registered shareholders of Shanghai Yishangshiye;
(5) an exclusive equity pledge agreement dated January 18, 2023 entered into among
Chongqing Yunqing, Mr. Liu Wei (劉偉), Ms. Wu Rongmei (吳蓉眉) and Shanghai
Yishangshiye, pursuant to which Mr. Liu Wei (劉偉) and Ms. Wu Rongmei (吳蓉眉)
agreed to pledge all of their existing and future equity interests in Shanghai Yishangshiye
to Chongqing Yunqing;
(6) a spouse undertaking dated January 18, 2023 executed by Ms. Tong Ke (仝珂), pursuant
to which Ms. Tong Ke (仝珂) undertook, among others, that she has no right to or control
over Mr. Liu Wei (劉偉) consolidated affiliated entities which hold interests in Shanghai
Yishangshiye and will not have any claim over such interests;
(7) a spouse undertaking dated January 1, 2022 executed by Mr. Li Jiaxing (李佳興), pursuant
to which Mr. Li Jiaxing (李佳興) undertook, among others, she has no right to or control
over Ms. Wu Rongmei (吳蓉眉) consolidated affiliated entities which hold interests in
Shanghai Yishangshiye and will not have any claim on such interests;
– V-10 –
(8) a loan agreement dated March 29, 2022 entered into by and between PT Cahaya Global
Berjaya and PT Global Jet Express, pursuant to which PT Cahaya Global Berjaya agreed
to provide loans in an aggregate amount of Rp 3,000,000,000 to PT Global Jet Express
to support its business operations.
(9) a guarantee agreement dated March 29, 2022, entered into by and between Effendy, Robin
Lo and PT Cahaya Global Berjaya, pursuant to which Effendy and Robin Lo, each as 50%
shareholders of PT Cakrawala Lintas Benua, have agreed to guarantee to PT Cahaya
Global Berjaya, the payment obligation of PT Global Jet Express under the loan
agreement;
(10) a guarantee agreement dated March 29, 2022, entered into by and between Effendy, Robin
Lo and PT Cahaya Global Berjaya, pursuant to which Effendy and Robin Lo, each as 50%
shareholders of PT Sukes Indo Investama, have agreed to guarantee to PT Cahaya Global
Berjaya, the payment obligation of PT Global Jet Express under the loan agreement;
(11) a guarantee agreement dated March 29, 2022, entered into by and between PT Cakrawala
Lintas Benua, PT Sukes Indo Investama and PT Cahaya Global Berjaya, pursuant to
which PT Cakrawala Lintas Benua and PT Sukses Indo Investama have agreed to
guarantee to PT Cahaya Global Berjaya, the payment obligation of PT Global Jet Express
under the loan agreement;
(12) an exclusive option agreement dated March 29, 2022, entered into by and between
Effendy, PT Cahaya Global Berjaya and PT Cakrawala Lintas Benua, pursuant to which
both Effendy and PT Cakrawala Lintas Benua have agreed to grant the exclusive option
to PT Cahaya Global Berjaya and undertakes to sell to PT Cahaya Global Berjaya or its
designee all of Effendy’s equity interests in PT Cakrawala Lintas Benua and all the assets
of PT Cakrawala Lintas Benua to secure the payment obligation of PT Global Jet Express
to PT Cahaya Global Berjaya;
(13) an exclusive option agreement dated March 29, 2022, entered into by and between
Effendy, PT Cahaya Global Berjaya and PT Sukses Indo Investama, pursuant to which
both Effendy and PT Sukses Indo Investama have agreed to grant the exclusive option to
PT Cahaya Global Berjaya and undertakes to sell to PT Cahaya Global Berjaya or its
designee all of Effendy’s equity interests in PT Sukses Indo Investama and all the assets
of PT Sukses Indo Investama to secure the payment obligation of PT Global Jet Express
to PT Cahaya Global Berjaya.
(14) an exclusive option agreement dated March 29, 2022, entered into by and between Robin
Lo, PT Cahaya Global Berjaya and PT Cakrawala Lintas Benua, pursuant to which both
Robin Lo and PT Cakrawala Lintas Benua have agreed to grant the exclusive option to
PT Cahaya Global Berjaya and undertakes to sell to PT Cahaya Global Berjaya or its
designee all of Robin Lo’s equity interests in PT Cakrawala Lintas Benua and all the
assets of PT Cakrawala Lintas Benua to secure the payment obligation of PT Global Jet
Express to PT Cahaya Global Berjaya.
(15) an exclusive option agreement dated March 29, 2022, entered into by and between Robin
Lo, PT Cahaya Global Berjaya and PT Sukses Indo Investama, pursuant to which both
Robin Lo and PT Sukses Indo Investama have agreed to grant the exclusive option to PT
Cahaya Global Berjaya and undertakes to sell to PT Cahaya Global Berjaya or its
designee all of Robin Lo’s equity interests in PT Sukses Indo Investama and all the assets
of PT Sukses Indo Investama to secure the payment obligation of PT Global Jet Express
to PT Cahaya Global Berjaya;
– V-11 –
(16) an exclusive option agreement dated March 29, 2022, entered into by and between PT
Cakrawala Lintas Benua, PT Cahaya Global Berjaya and PT Global Jet Express, pursuant
to which both PT Cakrawala Lintas Benua and PT Global Jet Express have agreed to grant
the exclusive option to PT Cahaya Global Berjaya and undertakes to sell to PT Cahaya
Global Berjaya or its designee all of their rights to PT Cakrawala Lintas Benua’s equity
interest in PT Global Jet Express and all the assets of PT Global Jet Express to secure the
payment obligation of PT Global Jet Express to PT Cahaya Global Berjaya;
(17) an exclusive option agreement dated March 29, 2022, entered into by and between PT
Sukses Indo Investama, PT Cahaya Global Berjaya and PT Global Jet Express, pursuant
to which both PT Sukses Indo Investama and PT Global Jet Express have agreed to grant
the exclusive option to PT Cahaya Global Berjaya and undertakes to sell to PT Cahaya
Global Berjaya or its designee all of their rights to PT Sukses Indo Investama’s equity
interest in PT Global Jet Express and all the assets of PT Global Jet Express to secure the
(18) a share pledge agreement dated March 29, 2022, entered into by and between Effendy and
PT Cahaya Global Berjaya, pursuant to which Effendy agrees to pledge his entire equity
interest in PT Cakrawala Lintas Benua to PT Cahaya Global Berjaya to secure the
(19) a share pledge agreement dated March 29, 2022, entered into by and between Robin Lo
and PT Cahaya Global Berjaya, pursuant to which Robin Lo agrees to pledge his entire
equity interest in PT Cakrawala Lintas Benua to PT Cahaya Global Berjaya to secure the
(20) a share pledge agreement dated March 29, 2022, entered into by and between Effendy and
PT Cahaya Global Berjaya, pursuant to which Effendy agrees to pledge his entire equity
interest in PT Sukses Indo Investama to PT Cahaya Global Berjaya to secure the payment
obligation of PT Global Jet Express to PT Cahaya Global Berjaya;
(21) a share pledge agreement dated March 29, 2022, entered into by and between Robin Lo
and PT Cahaya Global Berjaya, pursuant to which Robin Lo agrees to pledge his entire
equity interest in PT Sukses Indo Investama to PT Cahaya Global Berjaya to secure the
(22) a share pledge agreement dated March 29, 2022, entered into by and between PT
Cakrawala Lintas Benua and PT Cahaya Global Berjaya, pursuant to which PT Cakrawala
Lintas Benua agrees to pledge its entire equity interest in PT Global Jet Express to PT
Cahaya Global Berjaya to secure the payment obligation of PT Global Jet Express to PT
Cahaya Global Berjaya;
(23) a share pledge agreement dated March 29, 2022, entered into by and between PT Sukses
Indo Investama and PT Cahaya Global Berjaya, pursuant to which PT Sukses Indo
Investama agrees to pledge its entire equity interest in PT Global Jet Express to PT
Cahaya Global Berjaya to secure the payment obligation of PT Global Jet Express to PT
Cahaya Global Berjaya;
(24) an exclusive technical service agreement dated March 29, 2022, entered into by and
between PT Cahaya Global Berjaya and PT Global Jet Express, pursuant to which PT
Global Jet Express agreed to retain PT Cahaya Global Berjaya to provide management
consultancy services to PT Global Jet Express in return for service fees;
– V-12 –
(25) an irrevocable power of attorney to sell dated March 29, 2022, entered into by and
between Effendy and PT Cahaya Global Berjaya, pursuant to which Effendy agreed to
grant power of attorney to PT Cahaya Global Berjaya to act as its proxy in respect of the
sale, transfer or otherwise disposal of its equity interest in PT Cakrawala Lintas Benua;
between Effendy and PT Cahaya Global Berjaya, pursuant to which Effendy agreed to
sale, transfer or otherwise disposal of its equity interest in PT Sukses Indo Investama;
between Robin Lo and PT Cahaya Global Berjaya, pursuant to which Robin Lo agreed to
sale, transfer or otherwise disposal of its equity interest in PT Cakrawala Lintas Benua;
between Robin Lo and PT Cahaya Global Berjaya, pursuant to which Robin Lo agreed to
sale, transfer or otherwise disposal of its equity interest in PT Sukses Indo Investama;
between PT Cakrawala Lintas Benua and PT Cahaya Global Berjaya, pursuant to which
PT Cakrawala Lintas Benua agreed to grant power of attorney to PT Cahaya Global
Berjaya to act as its proxy in respect of the sale, transfer or otherwise disposal of its
equity interest in PT Global Jet Express;
between PT Sukses Indo Investama and PT Cahaya Global Berjaya, pursuant to which PT
Sukses Indo Investama agreed to grant power of attorney to PT Cahaya Global Berjaya
to act as its proxy in respect of the sale, transfer or otherwise disposal of its equity interest
in PT Global Jet Express;
(31) an irrevocable power of attorney to exercise shareholder rights dated March 29, 2022,
entered into by and between Effendy and PT Cahaya Global Berjaya, pursuant to which
Effendy agreed to grant power of attorney to PT Cahaya Global Berjaya to act as its proxy
in respect of the exercise of its shareholder rights in PT Cakrawala Lintas Benua;
entered into by and between Effendy and PT Cahaya Global Berjaya, pursuant to which
Effendy agreed to grant power of attorney to PT Cahaya Global Berjaya to act as its proxy
in respect of the exercise of its shareholder rights in PT Sukses Indo Investama;
entered into by and between Robin Lo and PT Cahaya Global Berjaya, pursuant to which
Robin Lo agreed to grant power of attorney to PT Cahaya Global Berjaya to act as its
proxy in respect of the exercise of its shareholder rights in PT Cakrawala Lintas Benua;
entered into by and between Robin Lo and PT Cahaya Global Berjaya, pursuant to which
Robin Lo agreed to grant power of attorney to PT Cahaya Global Berjaya to act as its
proxy in respect of the exercise of its shareholder rights in PT Sukses Indo Investama;
– V-13 –
entered into by and between PT Cakrawala Lintas Benua and PT Cahaya Global Berjaya,
pursuant to which PT Cakrawala Lintas Benua agreed to grant power of attorney to PT
Cahaya Global Berjaya to act as its proxy in respect of the exercise of its shareholder
rights in PT Global Jet Express;
entered into by and between PT Sukses Indo Investama and PT Cahaya Global Berjaya,
pursuant to which PT Sukses Indo Investama agreed to grant power of attorney to PT
Cahaya Global Berjaya to act as its proxy in respect of the exercise of its shareholder
rights in PT Global Jet Express;
(37) a spousal consent and undertaking dated March 29, 2022, executed by Verawaty, pursuant
to which Verawaty undertook, among others, to refuse and not claim any of Robin Lo’s
equity interests in PT Cakrawala Lintas Benua;
(38) a spousal consent and undertaking dated March 29, 2022, executed by Verawaty, pursuant
to which Verawaty undertook, among others, to refuse and not claim any of Robin Lo’s
equity interests in PT Sukses Indo Investama; and
(39) the [REDACTED].
2.2 Intellectual property rights of our Group
As of the Latest Practicable Date, we have registered or have applied for the registration of the
following intellectual property rights which are material in relation to our business.
2.2.1 Trademarks
As of the Latest Practicable Date, we have registered the following trademarks which we
consider to be or may be material to our business:
Registration/
Place of Application Registration
No. Trademark Registered owner Class(es) registration number Date
1. J&T Express 39 PRC 38630690 2020-03-28

China
2. J&T Express 39 PRC 38630692 2020-05-14
China
3. J&T Express 39 PRC 40937194 2020-04-21
China
4. J&T Express 39 PRC 43795680 2021-06-07
China
5. J&T Express 39 PRC 53060502 2021-11-07
China
6. J&T Express 39 PRC 54076632 2021-12-28
China
7. J&T Express 39 PRC 56554230 2022-01-07
China
8. Winner Star 9, 35, 39, 42 Hong Kong 305158800 2019-12-31
– V-14 –
Registration/
9. Winner Star 9, 35, 39, 42 Singapore 40202000424R 2020-06-06
10. Winner Star 35 Malaysia TM2020114458 2020-03-04
11. Winner Star 9, 35, 39, 42 Philippines 4/2020/00000644 2020-07-26
12. Winner Star 39 Hong Kong 305215121 2020-03-11
13. Winner Star 39 United Arab 331425 2020-09-29

Emirates
14. Winner Star 39 Mexico 2119528 2020-09-04
15. Winner Star 39 Saudi Arabia 1441028960 2020-11-04
16. Winner Star 9, 16, 17, 22, 35, Singapore 40202008690T 2020-10-22
36, 37, 42
17. Winner Star 39 Singapore 40202012469U 2021-03-02
18. Winner Star 35, 36, 39 Singapore 40202027821W 2021-07-15
19. J&T Cargo Winner Star 39 Brazil, 1618834 2021-07-29

Indonesia,
Cambodia,
Mexico,
Philippines
20. J&T Cargo Winner Star 39 Egypt, 1618834 Registration
Malaysia, in progress
Thailand and
Vietnam
21. 极兔 Winner Star 39 Mexico 2318297 2021-10-27
22. J&T AIRLINES Winner Star 39 Indonesia IDM000629369 2017-12-08
(紅色)
23. J&T LOGISTIC Winner Star 39 Indonesia IDM000629368 2017-12-08
(紅色)
24. J&T EXPRESS Winner Star 39 Indonesia IDM000586998 2017-11-28
(紅色)
25. J&T Express Winner Star 39 Singapore 40201513615S 2016-01-20
26. J&T Logistic Winner Star 39 Singapore 40201513618Y 2016-01-13
27. J&T Airlines Winner Star 39 Singapore 40201513617W 2016-01-13
28. JET Express Winner Star 39 Singapore 40201513616V 2016-01-20
29. J&T Express Winner Star 39 Malaysia 2016059717 2016-05-27
30. J&T Logistic Winner Star 39 Malaysia 2016059715 2016-05-27
31. J&T Airlines Winner Star 39 Malaysia 2016059716 2016-05-27
32. JET Express Winner Star 39 Malaysia 2016059718 2016-05-27
33. J&T Express Winner Star 39 Thailand 171122442 2017-07-19
34. J&T Airlines Winner Star 39 Thailand 171122489 2017-07-19
35. J&T Logistic Winner Star 39 Thailand 171122491 2017-07-19
36. J&T Express Winner Star 39 Cambodia 63554 2017-04-21
37. J&T Logistic Winner Star 39 Cambodia 63552 2017-04-21
38. J&T Airlines Winner Star 39 Cambodia 63551 2017-04-21
39. JET Express Winner Star 39 Cambodia 63553 2017-04-21
– V-15 –
Registration/
40. J&T Express Winner Star 39 Philippines 504561 2016-06-23

41. J&T Express Winner Star 39 Vietnam 281490 2017-05-15
42. J&T Logistic Winner Star 39 Vietnam 281491 2017-05-15
43. J&T Airlines Winner Star 39 Vietnam 281492 2017-05-15
44. Winner Star 39 Egypt 1561295 2020-10-14
45. Winner Star 39 Brazil 923153942 Registration in

progress
46. 极兔 Winner Star 9, 35, 39, 42 Thailand 221108236 2020-01-22
47. J&T 極兔國際 J&T Express 39 PRC 65197229 2022-12-21
48. J&T Cargo J&T Express 39 PRC 62862145 2022-12-13
49. J&T Cargo Winner Star 39 Singapore 40202117123W 2021-07-16
50. J&T Cargo Winner Star 39 United Arab 360746 2021-09-29
Emirates
2.2.2 Patents
As of the Latest Practicable Date, we have sixteen pending patent applications in mainland
China.
2.2.3 Copyrights
As of the Latest Practicable Date, we had registered the following copyrights which we
(i) Software ( 軟件)
Place of Registration Registration

No. Copyright Version Registration Number Date
1. JMS Prepayments 1.0 PRC 2021SR1113123 2021-07-28

Management System
2. JMS Capacity Platform 1.0 PRC 2021SR1106591 2021-07-27
Route Management System
3. Customer Electronic 1.0 PRC 2021SR1106600 2021-07-27
Waybill Platform
Maintenance System
4. Driver Signature and Task 1.0 PRC 2021SR1112729 2021-07-28
Query APP
5. WeChat Casual Client 1.0 PRC 2021SR1112584 2021-07-28
Order Delivery System
6. Project Work Order 1.0 PRC 2021SR1112746 2021-07-28
Management System
7. Recycling Transfer Package 1.0 PRC 2021SR1112747 2021-07-28
APP
8. Jiexiao Recycling Transfer 1.0 PRC 2021SR1119739 2021-07-29
Package Backstage
Management System
– V-16 –

9. STO Global Official 1.0 PRC 2021SR1209297 2021-08-16

Website Tracking Display
Docking System
10. Procurement Price 1.0 PRC 2021SR1209791 2021-08-16
Management System
11. JMS Information Cockpit 1.0 PRC 2021SR1209359 2021-08-16
Monitoring Platform
12. Recycling Transfer Auto 1.0 PRC 2021SR1209360 2021-08-16
Compilation of Packages
APP
13. Platform Capacity 1.0 PRC 2021SR1209356 2021-08-16
Management System
14. Customer Claims 1.0 PRC 2021SR1281939 2021-08-30
Management System
15. Customer Complaint and 1.0 PRC 2021SR1281940 2021-08-30
Feedback System
16. Equipment Software 1.0 PRC 2021SR1281941 2021-08-30
Information Management
System
17. Driver Check-In and 1.0 PRC 2021SR1285863 2021-08-30
Reporting System
18. Web Complaints System 1.0 PRC 2021SR1285816 2021-08-30
19. Equipment Software 2.0 PRC 2021SR1981607 2021-12-02
Information Management
System
20. JTS Express Express 1.0 PRC 2021SR2019527 2021-12-08
Station Management
System
21. JTS Area Smart Planning 1.0 PRC 2021SR2019526 2021-12-08
System
22. J&T International API 1.0 PRC 2021SR2019525 2021-12-08
Platform
23. JTS Online Payments 1.0 PRC 2021SR1892275 2021-11-25
Platform
24. JTS Address Smart 1.0 PRC 2021SR1892274 2021-11-25
Analysis Platform
25. CRS Cross-Border Small 1.0 PRC 2021SR1892273 2021-11-25
Parcel Management
Platform
26. Yunlu COD Invoice 1.0 PRC 2021SR2011590 2021-12-07
Management Platform
27. JTS Nine Digit Code Smart 1.0 PRC 2021SR2012397 2021-12-07
Sorting Platform
28. CRS Cross Border Small 1.0 PRC 2021SR2012359 2021-12-07
Parcel Fee Management
System
29. JTS Electronic Contract 1.0 PRC 2021SR2037655 2021-12-10
Management System
30. JTS Airline Capacity 1.0 PRC 2021SR2037654 2021-12-10
Management System
– V-17 –

31. Yunlu Concentrated 1.0 PRC 2021SR2019528 2021-12-08

Transportation Warehouse
Management System
32. BEST Huitong Express 1.0 PRC 2012SR062628 2012-07-12
Management System
Software
33. Winner Star Express 1.0 PRC 2021SR1125898 2021-07-29
Delivery Management
System (Southeast Asia
Version)
34. Winner Star Order 1.0 PRC 2021SR1125900 2021-07-29
Management System
Delivery Personnel Smart
APP Operating System
36. Winner Star Scanning 1.0 PRC 2021SR1125899 2021-07-29
Management System
37. Winner Star Capacity 1.0 PRC 2021SR2108671 2021-12-22
Management System
(International Version)
38. Winner Star Infield 1.0 PRC 2021SR2109387 2021-12-23
Transfer APP Software
(International Version)
Delivery Management
Platform (International
Version)
2.2.4 Domain names
As of the Latest Practicable Date, we have registered the following domain names which we
No. Domain Registered owner Expiry Date
1. jtexpress.com J&T Express China 2027-12-18

2. jtexpress.group J&T Express International Logistics China 2029-06-17
3. jtexpress.com.cn J&T Express International Logistics China 2029-05-21
4. jtexpress.ae Winner Star 2025-01-14
5. jtexpress-sa.com Winner Star 2025-05-13
6. jtexpress.ph PH GLOBAL JET EXPRESS INC., doing 2029-11-26
business under the name and style of J&T
Express
7. jtexpress.my J&T Express (Malaysia) Sdn. Bhd. 2024-04-11
8. jtexpress.co.th Global Jet Express (Thailand) Co., Ltd. 2028-09-05
9. jtexpress.sg J&T Express Singapore Pte Ltd. 2023-12-04
10. jtexpress.vn Thuan Phong Express Company Limited 2028-12-04
11. jet.co.id PT. Global Jet Express 2025-5-15
12. jtexpress.mx Winner Star 2025-01-14
– V-18 –
No. Domain Registered owner Expiry Date
13. jtexpress.com.br Winner Star 2026-5-17

14. jtcargo.id PT. Global Jet Express 2024-06-29
15. jtexpress.com.eg Winner Star 2023-12-21
16. jtexpress.com.kh GLOBAL JET EXPRESS KHM CO., LTD. 2023-11-26
17. yoyistation.co.th Yoyi Station Co., Ltd. 2025-07-16
Save as disclosed above, as of the Latest Practicable Date, there were no other trade or service
marks, patents, intellectual or industrial property rights which were material in relation to our
business.
3. FURTHER INFORMATION ABOUT OUR DIRECTORS AND SUBSTANTIAL

SHAREHOLDERS
3.1 Disclosure of interests
Save as disclosed below, immediately following the completion of the [REDACTED]

(assuming that (i) the [REDACTED] is not exercised and (ii) the Reclassification,
Redesignation and Share Subdivision are completed), so far as our Directors are aware, the
interests or short positions of our Directors and the chief executives in any Shares, underlying
shares and debentures of our Company or any associated corporations (within the meaning of
Part XV of the SFO), which will have to be notified to our Company and the Stock Exchange
pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions
which have been taken or deemed to have been taken under such provisions of the SFO) or
which will be required, pursuant to section 352 of the SFO, to be entered in the register or
which will be required to be notified to our Company and the Stock Exchange pursuant to the
Model Code for Securities Transactions by Directors of Listed Issuers contained in the Listing
Rules, will be as follows:
Interest in Shares of the Company
Approximate %
shareholding
interest in each
class of Shares
immediate
following the
Capacity/Nature of Number and class completion of the
Name of Director interest (1) of securities [REDACTED](2)
Jet Jie Li (3) Interest in a controlled 979,333,410 [REDACTED]

corporation Class A Shares
Alice Yu-fen Cheng (4) Interest in a controlled 143,380,855 [REDACTED]
corporation Class B Shares
Yuan Zhang (5) Interest in a controlled 327,712,070 [REDACTED]
corporation Class B Shares
Notes:
(1) All interests stated are long position.
(2) The calculations are made assuming that (i) the [REDACTED] is not exercised and (ii) the Reclassification,
Redesignation and Share Subdivision are completed.
– V-19 –
(3) This includes the 979,333,410 Class A Shares held by Jumping Summit Limited; Topping Summit Limited, an
entity wholly-owned by Mr. Li, owns 5% equity interest of Jumping Summit Limited; Exceeding Summit
Holding Limited, which is held by Vistra Trust (Singapore) Pte. Limited as a trustee for a trust established by
Mr. Li for the benefit of Mr. Li and his family members, owns the remaining 95% equity interest in Jumping
Summit Limited. Accordingly, Mr. Li is deemed to be interested in the 979,333,410 Class A Shares held by
Jumping Summit Limited under the SFO.
(4) This includes the 143,380,855 Class B Shares held by EASY INNOVATION LIMITED, which is wholly-
owned by Ms. Alice Yu-fen Cheng. Accordingly, Ms. Alice Yu-fen Cheng is deemed to be interested in the
143,380,855 Class B Shares held by EASY INNOVATION LIMITED.
(5) This includes the 327,712,070 Class B Shares held by LONG ORIGIN LIMITED, which is wholly-owned by
Mr. Zhang Yuan. Accordingly, Mr. Zhang Yuan is deemed to be interested in the 327,712,070 Class B Shares
held by LONG ORIGIN LIMITED.
3.2 Substantial Shareholders
For information on the persons who will, immediately following the completion of the
[REDACTED] (assuming that (i) the [REDACTED] is not exercised and (ii) the
Reclassification, Redesignation and Share Subdivision are completed), have interests or short
positions in our Shares or underlying Shares which would be required to be disclosed to our
Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the
SFO, see “Substantial Shareholders”.
Save as set out above, as of the Latest Practicable Date, our Directors are not aware of any
person who will, immediately following the completion of the [REDACTED] (assuming that
(i) the [REDACTED] is not exercised and (ii) the Reclassification, Redesignation and Share
Subdivision are completed), be interested, directly or indirectly, in 10% or more of the nominal
value of any class of share capital carrying rights to vote in all circumstances at general
meetings of our Company or have an option in respect of such capital.
3.3 Directors’ service contracts and appointment letter
Executive Director
Our executive Director [has entered] into a service contract with our Company. Pursuant to this
agreement, he agrees to act as executive Director for an initial term of three years with effect
from the [REDACTED] until the third annual general meeting of our Company after the
[REDACTED] (whichever is earlier). Either party has the right to give not less than one
month’s written notice to terminate the agreement. Details of the Company’s remuneration
policy is described in “Directors and Senior Management – Directors’ Remuneration.”
No annual director’s fees are payable to the executive Director under the current arrangement.
Each of our non-executive Directors [has entered] into an appointment letter with our
Company. The initial term of their appointment shall be three years from the [REDACTED]
or until the third annual general meeting of the Company after the [REDACTED], whichever
is earlier, (subject to retirement as and when required under the Articles of Association) until
terminated in accordance with the terms and conditions of the appointment letter or by either
party giving to the other not less than one month’s prior notice in writing. Under these
appointment letters, each of the non-executive Directors will receive an annual director’s fee
of HK$500,000 per annum.
– V-20 –
Independent Non-executive Directors
Each of our independent non-executive Directors [has entered] into an appointment letter with
our Company. The initial term of their appointment shall be three years from the
[REDACTED] or until the third annual general meeting of the Company after the
[REDACTED], whichever is earlier, (subject to retirement as and when required under the
Articles of Association) until terminated in accordance with the terms and conditions of the
appointment letter or by either party giving to the other not less than one month’s prior notice
in writing. Under these appointment letters, each of the independent non-executive Directors
will receive an annual director’s fee of HK$500,000 per annum.
Save as disclosed above, none of our Directors has or will have a service contract with any
member of our Group, other than contracts expiring or determinable by the employer within
one year without the payment of compensation (other than statutory compensation).
3.4 Directors’ remuneration
The remuneration of our Directors are paid in the form of salaries, allowances, employee
benefits, discretionary bonuses, fees and retirement benefits.
For the three years ended December 31, 2020, 2021 and 2022, the aggregate amounts of
remuneration (including wages, salaries, bonuses, pension costs, other employee benefits, but
excluding share-based compensation expenses) paid by our Company to the Directors were
approximately US$1.83 million, US$12.85 million and US$5.03 million, respectively.
None of our Directors has or is proposed to have a service contract with the Company other
than contracts expiring or determinable by the employer within one year without the payment
of compensation (other than statutory compensation).
3.5 Further Information about our Directors
In September 2021, a securities class action against, among others, Waterdrop Inc.
(“Waterdrop”) was filed in the U.S. District Court for the Southern District of New York (the
“Court”), Sidney Sandoz, et al. v. Waterdrop Inc., et al., 1:21-cv-07683 (the “Waterdrop
Class Action”) alleging violations of the Securities Act of 1933 in relation to Waterdrop’s
initial public offering in May 2021 in the US (the “Waterdrop IPO”). Mr. Shen Peng in his
capacity as chief executive officer and, together with certain other executives and directors of
Waterdrop and the [REDACTED] (together with Waterdrop, the “Defendants”) of Waterdrop
IPO, was named as one of the Defendants in the case. However, Mr. Shen has not been served
any associated notice or legal documents in respect of the Waterdrop Class Action. To the best
of the Company’s knowledge and according to published court records, the plaintiffs alleged
that the Defendants, among others, failed to make adequate disclosures in connection with
Waterdrop IPO, in breach of Sections 11 and 15 of the U.S. Securities Act of 1933. Specifically,
the plaintiffs alleged that the registration statement of Waterdrop IPO failed to make adequate
disclosures regarding, among others, (i) increased scrutiny over internet-based insurance
companies by Chinese authorities and its impact on Waterdrop’s financials and business
operations; (ii) the true reasons for Waterdrop’s discontinuance of its mutual aid program; and
(iii) the rapid suffering of Waterdrop accelerating operating losses in the first quarter of 2021.
The complaint seeks damages allegedly suffered by the plaintiffs as a result of failure to make
adequate disclosures.
– V-21 –
Waterdrop filed a motion to dismiss on April 22, 2022. On February 3, 2023, the Court issued
an order granting Waterdrop’s motion to dismiss as “the Registration Statement adequately
warned investors of their risk associated with Waterdrop and its IPO, including the increase
in operating costs, the regulatory regime and the closure of Mutual Aid.” The case was
dismissed with prejudice. In addition, the order also verdicts that the claims against the
remaining defendants (including Mr. Shen) will also be dismissed and there is no basis to find
that the claims against the remaining Defendants, who have yet to be served, are
distinguishable and would survive.
On March 7, 2023, the plaintiffs filed a notice appealing the Court’s dismissal order (the
“Appeal”) in the U.S. Court of Appeals, Second Circuit (the “Circuit Court”). As of the Latest
Practicable Date, the Appeal is at a preliminary stage and no decision has been made by the
Circuit Court.
As of the Latest Practicable Date, the Company has no basis to believe that either of the
Waterdrop Class Action or the Appeal impugn the integrity and suitability of Mr. Shen to act
as the Company’s director, because the mere naming of an individual director as a defendant
in these actions does not form a basis for doubting his integrity or suitability to discharge his
duties as a director of a public company. In addition, to the best knowledge of the Company,
(i) the Court ruled in favour of Waterdrop’s motion and dismissed the Waterdrop Class Action;
(ii) as of the Latest Practical Date, the Appeal is still at a preliminary stage and the Circuit
Court has not ruled on the substance of the plaintiffs’ claims; (iii) as of the Latest Practicable
Date, no evidence showing, or dispositive court ruling on, Mr. Shen’s personal involvement in
making or directing Waterdrop to make any alleged misstatements in a manner that would raise
concerns as to his character, experience, integrity and ability to discharge his duties as a
director, including fiduciary duties and duties to exercise skill, care and diligence to a standard
that commensurate with his position as a director of a listed company in Hong Kong; and (iv)
Mr. Shen has never been served any associated notice or legal documents in respect of the
Waterdrop Class Action. Taking into account all the above, the Directors are of the view that
the Waterdrop Class Action and the Appeal would not affect the suitability of Mr. Shen as a
Director of the Company under Rules 3.08 and 3.09 of the Listing Rules.
4. [REDACTED] SHARE INCENTIVE PLAN
Network Partner Equity Incentive Plan
The following is a summary of the principal terms of the Company’s Network Partner Equity
Incentive Plan of the Company as approved by all shareholders of the Company on February
26, 2022, and amended by way of Directors’ resolutions dated May 31, 2023 (the “Network
Partners Plan”). The terms of the Network Partners Plan are not subject to the provisions of
Chapter 17 of the Listing Rules.
4.1 Purpose of the Network Partners Plan
The purpose of the Network Partners Plan is to promote the success and enhance the value of
the Company by linking the personal interests of the Company’s network partners, regional
sponsors or other eligible individuals, who are authorized to operate J&T-branded express
delivery services, including but not limited to those who used to operate express delivery
services under other brand names as acquired by the Company from time to time but joined the
J&T network following the Company’s relevant acquisitions, to those of the Company’s
shareholders and by providing such individuals with an incentive to perform outstanding and
generate superior returns for the Company’s shareholders. This Network Partners Plan is
– V-22 –
further intended to provide flexibility to the Company in its ability to motivate, attract, and
retain the services of, and cooperative relationships with, such individuals upon whose
judgment, interests, and special efforts the success of the Company is largely dependent.
4.2 Selected participants to the Network Partners Plan
Awards under the Network Partners Plan may be granted only to those persons that the
Administrator (as defined below) determines to be Eligible Individuals. An “Eligible
Individual” means any person who is the beneficial owner of an external network partner or a
regional sponsor of the Company that enters into cooperation relationship with the Company
or any Service Recipient (as defined below) and is authorized to operate J&T-branded express
delivery services, including but not limited to those who used to operate express delivery
services under other brand names as acquired by the Company from time to time but joined the
J&T network following the Company’s relevant acquisition, or another applicable legal entity
or individual, as determined by the Administrator; provided, however, that Awards shall not be
granted to Consultants, Directors or other legal entities or individuals who are resident of any
country which pursuant to Applicable Laws does not allow grants to non-employees.
“Service Recipient” means the Company, any parent or subsidiary of the Company and any
related entity to which an Eligible Individual provides services or maintains cooperative
relationships as an external network partner, a regional sponsor or as an otherwise applicable
legal entity or individual.
Subject to the provisions of the Network Partners Plan, the Administrator may, from time to
time, select from among all Eligible Individuals to whom Awards in the form of options
(“Options”), restricted share awards (“Restricted Shares”) and restricted share units (“RSU”)
(collectively “Awards”) shall be granted and shall determine the nature and amount of each
option.
4.3 Maximum number of shares
The maximum aggregate number of shares which may be issued is 38,000,000 (or 190,000,000
Class B Shares, following completion of the Reclassification, Redesignation and Share
Subdivision) subject to any adjustments for other dilutive issuances.
4.4 Administration
The Network Partners Plan is administered by and all Awards under the Network Partners Plan
are authorized by the Administrator. The “Administrator” means the Chairman, namely the
chairman of the board of directors of the Company, or any authorized person to whom the
Chairman has delegated its authority, whom is entrusted to administer all or certain aspects of
the Network Partners Plan.
The Administrator shall have the power to interpret this Plan and the Award Agreement, and
to adopt such rules for the administration, interpretation and application of this Plan, to
interpret, amend or revoke any such rules and to amend any Award Agreement provided that
the rights or obligations of the Holder of the Award that is the subject of any such Award
Agreement are not affected adversely by such amendment, unless the consent of the Holder is
obtained or such amendment is otherwise permitted under the Network Partners Plan
provisions. Subject to any specific designation of the Network Partners Plan, the Administrator
has the exclusive power, authority and sole discretion to:
(i) designate Eligible Individuals to receive Awards;
– V-23 –
(ii) determine the type or types of Awards to be granted to each Eligible Individual;
(iii) determine the Fair Market Value of the Shares, namely, as of any date, the closing sales
price for such Shares (or the closing bid, if no sales were reported) as quoted on the
principal exchange or system on which the Shares are listed (as determined by the
Administrator) on the date of determination (or, if no closing sales price or closing bid
was reported on that date, as applicable, on the last trading date such closing sales price
or closing bid was reported), as reported in The Wall Street Journal or such other source
as the Administrator deems reliable;
(iv) determine the number of Awards to be granted and the number of Shares to which an
Award will relate;
(v) determine the terms and conditions of any Award granted pursuant to the Network
Partners Plan, including, but not limited to, the exercise price, grant price, or purchase
price, any reload provision, any restrictions or limitations on the Award, any schedule for
vesting, lapse or forfeiture restrictions or restrictions on the exercisability of an Award,
and accelerations or waivers thereof, and any provisions related to non-competition, the
recapture of gains on an Award and the repurchase of Shares, based in each case on such
considerations as the Administrator in its sole discretion determines;
(vi) determine whether, to what extent, and pursuant to what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in cash, Shares, or other Awards,
or other property, or an Award may be canceled, forfeited, or surrendered;
(vii) prescribe the form of each Award Agreement, which need not be identical for each
Holder;
(viii) determine whether a given company, partnership or individual constitutes a Competitor;
(ix) determine all matters and questions with respect to whether or not, with respect to a
certain Holder, a Termination of Service with the Company or the Service Recipient has
occurred, including without limitation whether such Termination of Service resulted from
the Cause, the specific date and time of such Termination of Service, and whether a
particular leave of absence constitutes a Termination of Service;
(x) determine whether Shares held by a Holder may be sold during the Company’s financing,
together with the specific amount, price, terms, conditions and other limitations;
(xi) determine lock-up periods of the Holder during the Company’s [REDACTED], together
with the specific time, amount, terms and conditions with respect to the Holder’s sale of
the Shares following the Company’s [REDACTED];
(xii) decide all other matters that must be determined in connection with an Award;
(xiii) establish, adopt or revise any rules and regulations as it may deem necessary or advisable
to administer the Network Partners Plan;
(xiv) interpret the terms of, and any matter arising pursuant to, the Network Partners Plan or
any Award Agreement; and
– V-24 –
(xv) make all other decisions and determinations that may be required pursuant to the Network
Partners Plan or as the Administrator deems necessary or advisable to administer the
Network Partners Plan.
4.5 Grant of Awards
The Administrator may determine, at its sole discretion, whether to grant any Awards to any
Eligible Individual and the specific type, amount, limitations, terms and conditions of such
Awards, based on such Eligible Individual’s level, performance and the Company’s business
development conditions, etc.
The Administrator may, from time to time, select from among all Eligible Individuals, those to
whom an Award shall be granted and shall determine the nature and amount of each Award,
which shall not be inconsistent with the requirements of this Network Partners Plan. No
Eligible Individual shall be automatically granted any Award under this Network Partners Plan.
Each Award shall be evidenced by an Award Agreement.
Awards granted pursuant to this Network Partners Plan may, in the sole discretion of the
Administrator, be granted either alone, in addition to, or in tandem with, any other Award
granted pursuant to this Network Partners Plan. Awards granted in addition to or in tandem with
other Awards may be granted either at the same time as or at a different time from the grant
of such other Awards.
Unless be otherwise provided in the Award Agreement, the term of any Award granted under
this Network Partners Plan shall not exceed ten (10) years from the date such Award is granted.
Except as limited by any Applicable Laws, the Administrator (a) may extend the term of any
outstanding Award, (b) may extend the time period during which vested Awards may be
exercised, in connection with any Termination of Service of the Holder, and (c) may amend any
other term or condition of such Award relating to such a Termination of Service.
4.6 Restricted Stock Units (RSUs)
(i) Grant and Vesting of Restricted Share Units
The Administrator is authorized to grant Restricted Stock Units to any Eligible Individual. The
number and terms and conditions of Restricted Stock Units shall be determined by the
Administrator. The Administrator shall specify the date or dates on which the Restricted Stock
Units shall become fully vested, and may specify such conditions to vesting as it deems
appropriate, including service to the Service Recipients and fulfillment of tax duties by the
Holder under the Applicable Laws, in each case on a specified date or dates or over any period
or periods, as the Administrator determines. The Administrator shall specify the conditions and
dates upon which the Shares underlying the Restricted Stock Units that shall be issued, which
dates shall not be earlier than the date as of which the Restricted Stock Units vest and become
nonforfeitable and which conditions and dates shall be subject to compliance with any
Applicable Laws. On the distribution dates, the Company shall issue to the Holder one
unrestricted, fully transferable Share (or the Fair Market Value of one such Share in cash) for
each vested and nonforfeitable Restricted Stock Unit.
– V-25 –
(ii) Purchase Price
The Administrator may establish the purchase price of a Restricted Stock Unit; provided
however that value of the consideration shall not be less than the par value of the Shares, unless
otherwise permitted by Applicable Laws. Restricted Stock Units may be paid in cash or in any
other consideration as determined by the Administrator.
(iii) Exercise upon Termination of Service
A Restricted Stock Unit award is exercisable or distributable only after the Trading Date and
prior to the Termination of Service of the Holder with the Company or the Service Recipient
(as applicable). The Administrator, however, in its sole discretion may provide that the
Restricted Stock Unit award may be exercised or distributed subsequent to a Termination of
Service in certain events.
4.7 Restricted Shares
(i) Award of Restricted Share
The Administrator is authorized to grant Restricted Shares to Eligible Individuals, and shall
determine the amount of, and the terms and conditions, including the restrictions applicable to
each award of Restricted Shares, which terms and conditions shall not be inconsistent with the
Network Partners Plan, and may impose such conditions on the issuance of such Restricted
Shares as it deems appropriate.
The Administrator will determine the purchase price, if any, and form of payment for Restricted
Shares; provided, however, that such purchase price shall be no less than the par value of the
Shares to be purchased, unless otherwise permitted by Applicable Laws. In all cases, legal
consideration (normally the par value of the Shares) shall be required for each issuance of
Restricted Shares.
(ii) Rights as Shareholders
Subject to the provisions of the Network Partners Plan, upon issuance of Restricted Shares, the
Holder shall have, unless otherwise provided by the Administrator, all the rights of a
shareholder with respect to said Shares, subject to the restrictions in his or her Award
Agreement, including the right to receive all dividends and other distributions paid or made
with respect to the Shares; provided, however, that in the sole discretion of the Administrator,
any extraordinary distributions with respect to the Shares shall be subject to such restrictions
and vesting requirements as the Administrator shall provide.
(iii) Repurchase or Forfeiture of Restricted Shares
If no price was paid by the Holder for the Restricted Shares, upon a Termination of Service the
Holder’s rights in unvested Restricted Shares then subject to restrictions shall lapse, and such
Restricted Shares shall be surrendered to the Company and cancelled without consideration. If
a purchase price was paid by the Holder for the Restricted Shares, upon a Termination of
Service the Company shall have the right to repurchase from the Holder the unvested
Restricted Shares then subject to restrictions at a cash price per share equal to the price paid
by the Holder for such Restricted Shares or such other amount as may be specified in the Award
– V-26 –
Agreement. The Administrator in its sole discretion may provide that in the event of certain
events the Holder’s rights in unvested Restricted Shares shall not lapse, such Restricted Shares
shall vest and shall be non-forfeitable, and if applicable, the Company shall not have a right
of repurchase.
(iv) Share Certificate
Restricted Shares granted pursuant to the Network Partners Plan may be evidenced in such
manner as the Administrator shall determine. Certificates or book entries evidencing Restricted
Shares must include an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Share, and the Company may, in its sole discretion, retain
physical possession of any share certificate until such time as all applicable restrictions lapse.
4.8 Limitation on Transfer
Unless otherwise expressly provided in the Network Partners Plan, no Award and no Share
distributed from the Award may be sold, pledged, assigned or transferred in any manner other
than by will or the laws of testacy and distribution subject to the consent of the Administrator,
or as required under applicable domestic relations laws. In addition, the shares shall be subject
to the restrictions set forth in the applicable Award Agreement.
4.9 Adjustments
In the event of any distribution, share split, combination or exchange of Shares, amalgamation,
arrangement or consolidation, reorganization of the Company, including the Company
becoming a subsidiary in a transaction not involving a Corporate Transaction, spin-off,
recapitalization or other distribution (other than normal cash dividends) of Company assets to
its shareholders, or any other change affecting the Shares or the share price of a Share, the
Administrator shall make such proportionate and equitable adjustments, if any, to reflect such
change with respect to (a) the aggregate number and type of shares that may be issued under
this Plan (including, but not limited to, adjustments of the limitations and substitutions of
shares in a parent or surviving company); (b) the terms and conditions of any outstanding
Awards (including, without limitation, any applicable performance targets or criteria with
respect thereto); and (c) the grant or exercise price per share for any outstanding Awards under
this Plan. The form and manner of any such adjustments shall be determined by the
Administrator in its sole discretion.
4.10 Amendment, modification and termination
Except as otherwise provided in the Network Partners Plan, at any time and from time to time,
the Administrator may terminate, amend or modify the Network Partners Plan; provided,
however, that to the extent necessary and desirable to comply with Applicable Laws the
Company shall obtain Board approval of any Network Partners Plan amendment in such a
manner and to such a degree as required.
Outstanding RSUs granted
We have applied for, and [have been] granted a waiver from the Stock Exchange from strict
compliance with the disclosure requirements under Rule 17.02(1)(b) of the Listing Rules in
connection with the information of the RSUs granted under the [REDACTED] Share Incentive
Plan; For further details, see “Waivers – Waiver in relation to the [REDACTED] Share
Incentive Plan of the Company”.
– V-27 –
RSUs
As of the Latest Practicable Date, none of the grantees of outstanding RSUs under the
[REDACTED] Share Incentive Plan is a Director, senior management or connected person of
the Company. Details of the outstanding RSUs granted to 674 other participants under the
[REDACTED] Share Incentive Plan as of the Latest Practicable Date are set out below:
Approximate percentage of
Number of Shares shareholding immediately
subject to the Date of Vesting following completion
Name of Grantee RSUs granted Grant Period of the [REDACTED](2)
Connected Person
nil N/A N/A N/A N/A
674 other participants of the 6,368,100(1) September 1-3 years [REDACTED]%
[REDACTED] Share Incentive 28, 2022
Plan
Total 6,368,100(1) [REDACTED]%
(1)
31,840,500 Class B Shares, following completion of the Reclassification, Redesignation and Share Subdivision.
(2)
Approximate percentage of shareholding is calculated as the number of Shares subject to the RSUs granted to
a grantee and divided by the total number of Shares in issue immediately upon completion of the [REDACTED].
Dilution Effect After [REDACTED] and Impact on Earnings per Share
The maximum number of shares which may be issued under the [REDACTED] Share
Incentive Plan is 38,000,000 class A ordinary shares (190,000,000 Class B Shares, following
completion of the Reclassification, Redesignation and Share Subdivision). Prior to the
[REDACTED], our Company issued 38,000,000 class A ordinary shares of our Company on
September 28, 2022 to NP Investment Platform Limited at par value to facilitate the
administration of the [REDACTED] Share Incentive Plan. All outstanding RSUs under the
[REDACTED] Share Incentive Plan will be granted before [REDACTED]. No further Shares
will be issued by our Company under the [REDACTED] Share Incentive Plan upon
[REDACTED]. The [REDACTED] Share Incentive Plan will not have any dilutive effect on
the shareholding of our Shareholders after the [REDACTED]. The impact on the earnings per
ordinary share for the years ended December 31, 2020 and 2021 is nil. The impact on the
earnings per ordinary share for the year ended December 31, 2022 is (3.4) cents.
– V-28 –
5. OTHER INFORMATION
5.1 Estate Duty
Our Directors have been advised that no material liability for estate duty is likely to fall on our
Company or any of our subsidiaries or Consolidated Affiliated Entities.
5.2 Litigation
As of the Latest Practicable Date, save as disclosed in “Business”, no member of our Group
was engaged in any litigation, arbitration or claim of material importance, and no litigation,
arbitration or claim of material importance was known to the Directors to be pending or
threatened by or against our Group, that would have a material adverse effect on our business,
finance condition or results of operations.
5.3 Joint Sponsors
The Joint Sponsors satisfies the independence criteria applicable to sponsors set out in Rule
3A.07 of the Listing Rules. Each of the Joint Sponsors will receive a fee of US$1,000,000 for
acting as the sponsors for the [REDACTED].
The Joint Sponsors have made an [REDACTED] on our behalf to the [REDACTED]
Committee for the [REDACTED] of, and permission to deal in, the Class B Shares in issue,
the Class B Shares to be issued pursuant to the [REDACTED] (including any Class B Shares
which may fall to be issued pursuant to the exercise of the [REDACTED]) and Class B Shares
to be issued upon conversion of Class A Shares into Class B Shares on a one to one basis. Our
Class A Shares will remain unlisted upon the Company’s [REDACTED] as required under
Rule 8A.08 of the Listing Rules.
5.4 Preliminary expenses
The Company did not incur any material preliminary expenses.
5.5 No material adverse change
Save as disclosed in this document, our Directors confirm that there has been no material
adverse change in the financial or trading position or prospects of the Group since
December 31, 2022 (being the date to which the latest audited consolidated financial
statements of our Group were prepared).
5.6 Promoters
Our Company has no promoter for the purpose of the Listing Rules. No cash, securities or other
benefit has been paid, allotted or given nor are any proposed to be paid, allotted or given to
any promoters in connection with the [REDACTED] and the related transactions described in
this document within the two years immediately preceding the date of this document.
– V-29 –
5.7 Qualifications and consents of experts
The following are the qualifications of the experts who have given opinions or advice which
are contained in this document:
Name Qualifications
China International Capital Corporation A licensed corporation to conduct Type 1

Hong Kong Securities Limited (dealing in securities), Type 2 (dealing in
futures contracts), Type 4 (advising on
securities), Type 5 (advising on futures
contracts) and Type 6 (advising on corporate
finance) regulated activities under the SFO
Merrill Lynch (Asia Pacific) Limited A licensed corporation to conduct Type 1

(dealing in securities), Type 4 (advising on
contracts) and Type 6 (advising on corporate
finance) regulated activities as defined under
the SFO
Morgan Stanley Asia Limited A licensed corporation to conduct Type 1

(dealing in securities), Type 4 (advising on
contracts), Type 6 (advising on corporate
finance) and Type 9 (asset management)
regulated activities as defined under the SFO
PricewaterhouseCoopers Certified Public Accountants under the

Professional Accountants Ordinance
(Cap. 50)
Registered Public Interest Entity Auditor

under the Accounting and Financial
Reporting Council Ordinance (Cap. 588)
DaHui Lawyers Legal advisers as to PRC law to our

Company
Harney Westwood & Riegels Cayman Islands attorney-at-law
SyCip Salazar Hernandez & Gatmaitan Legal advisers as to Philippines law to our
Company
Rahmat Lim & Partners Legal advisers as to Malaysian law to our

Company
Hutabarat Halim & Rekan Legal advisers as to Indonesian law to our

Company
Weerawong, Chinnavat & Partners Ltd. Legal advisers as to the laws of Thailand to
our Company
– V-30 –
Name Qualifications
Vietnam International Law Firm (VILAF) Legal advisers as to Vietnamese law to our
Company
Frost & Sullivan Limited Industry consultant
Each of the experts named above has given and has not withdrawn its consent to the issue of
this document with the inclusion of its report, letter, summary of valuations, valuation
certificates and/or legal opinion (as the case may be) and references to its name included in the
form and context in which it respectively appears.
5.8 Binding Effect
This document shall have the effect, if an application is made pursuant to this document, of
rendering all persons concerned bound by all of the provisions (other than the penal provisions)
of sections 44A and 44B of the Companies (Winding Up and Miscellaneous Provisions)
Ordinance insofar as applicable.
5.9 Bilingual Document
The English language and Chinese language versions of this document are being published
separately, in reliance upon the exemption provided by section 4 of the Companies Ordinance
(Exemption of Companies and [REDACTED] from Compliance with Provisions) Notice
(Chapter 32L of the Laws of Hong Kong). In case of any discrepancies between the English
language version and Chinese language version of this document, the English language version
shall prevail.
5.10 Miscellaneous
5.10.1 Save as disclosed in this document, within the two years immediately preceding
the date of this document:
(i) there are no commissions (but not including commission to sub-[REDACTED]) for
subscribing or agreeing to subscribe, or procuring or agreeing to procure subscriptions
for any shares in or debentures of our Company; and
(ii) there are no commissions, discounts, brokerages or other special terms granted in
connection with the issue or sale of any capital of any member of our Group, and no
Directors, promoters or experts named in the paragraph headed “7. Other information
– Qualifications and consents of experts” above received any such payment or benefit.
5.10.2 Save as disclosed in this document:
(i) there are no founder, management or deferred shares in our Company or any member
of our Group;
(ii) we do not have any promoter and no cash, securities or other benefit has been paid,
allotted or given within the two years immediately preceding the date of this document,
or are proposed to be paid, allotted or given to any promoters;
– V-31 –
(iii) none of the Directors or the experts named in the paragraph headed “7. Other
information – Qualifications and consents of experts” above has any interest, direct or
indirect, in the promotion of, or in any assets which have been, within the two years
immediately preceding the date of this document, acquired or disposed of by or leased
to, any member of our Group, or are proposed to be acquired or disposed of by or
leased to any member of our Group;
(iv) as of the Latest Practicable Date, (a) CICC Qirong (Xiamen) Equity Investment Fund
Partnership (Limited Partnership) (中金啟融 (廈門)股權投資基金合夥企業(有限合夥))
(“CICC Qirong”) was indirectly interested in approximately 0.0104% issued share
capital of the Company and approximately 0.06% issued share capital of Jet Global
Express Limited (a subsidiary of our Company). The general partner of CICC Qirong
is CICC Capital Management Co., Ltd., one of the wholly owned subsidiaries of China
International Capital Corporation Limited and (b) Ningbo Meishan Free Trade Port
Area CICC Puyu Investment Center (Limited Partnership) (寧波梅山保稅港區中金浦
鈺投資中心(有限合夥)) (“CICC Puyu Fund”) was indirectly interested in
approximately 0.0179% of the issued share capital of the Company. CICC Puyu Fund
is managed by a wholly-owned subsidiary of China International Capital Corporation
Limited. China International Capital Corporation Hong Kong Securities Limited, one
of the Joint Sponsors and an expert, is a wholly owned subsidiary of China
International Capital Corporation Limited. Save for the foregoing, none of the experts
named in the paragraph headed “7. Other information – Qualifications and consents of
experts” above has any shareholding in our Company or any of our subsidiaries or has
the right (whether legally enforceable or not) to subscribe for or to nominate persons
to subscribe for securities in our Company or any of our subsidiaries;
(v) there are no bank overdrafts or other similar indebtedness by our Company to any
member of our Group;
(vi) there are no hire purchase commitments, guarantees or other material contingent
liabilities of our Company or any member of our Group;
(vii) there are no outstanding debentures of our Company or any member of our Group;
(viii) there is no other stock exchange on which any part of the equity or debt securities of
our Company is listed or dealt in or on which [REDACTED] or permission to deal is
being or is proposed to be sought;
(ix) no capital of any member of our Group is under option, or is agreed conditionally or
unconditionally to be put under option; and
(x) there are no contracts or arrangements subsisting at the date of this document in which
a Director is materially interested or which is significant in relation to the business of
our Group.
– V-32 –
APPENDIX VI DOCUMENTS DELIVERED TO THE REGISTRAR

OF COMPANIES AND ON DISPLAY
DOCUMENTS DELIVERED TO THE REGISTRAR OF COMPANIES
The documents attached to a copy of this document and delivered to the Registrar of
Companies in Hong Kong for registration were, among other documents:
(a) a copy of the [REDACTED];
(b) the written consents referred to in “Statutory and General Information – 5. Other
information – 5.7 Qualifications and consents of experts” in Appendix V to this
document; and
(c) copies of the material contracts referred to in the section headed “Statutory and General
Information – 2. Further information about our Business – 2.1 Summary of material
contracts” in Appendix V to this document.
DOCUMENTS ON DISPLAY
Copies of the following documents will be on display on the website of the Stock Exchange
at www.hkexnews.hk and our website at www.jtexpress.com during a period of 14 days from
the date of this document:
(a) the Memorandum and Articles of Association;
(b) the Accountant’s Report on the historical financial information of the Group for the three
years ended December 31, 2020, 2021 and 2022 from PricewaterhouseCoopers, the text
of which is set out in Appendix I to this document;
(c) [REDACTED], the text of which is set out in Appendix II to this document;
(d) the audited consolidated financial statements of our Group for the three years ended
December 31, 2020, 2021 and 2022;
(e) the report issued by Frost & Sullivan Limited, the summary of which is set forth in
“Industry Overview”;
(f) the legal opinion issued by DaHui Lawyers, our PRC Legal Adviser, in respect of certain
aspects of our Group in the PRC;
(g) the Indonesian legal opinions issued by Hutabarat Halim & Rekan on Indonesian law, in
respect of certain general corporate matters of our Group and certain aspects of
Indonesian law referred to in “Contractual Arrangements – Indonesia Contractual
Arrangements”;
(h) the Thai legal opinion issued by Weerawong, Chinnavat & Partners Ltd. in respect of the
laws of Thailand and certain general corporate matters of our Group;
(i) the Malaysian legal opinion issued by Rahmat Lim & Partners in respect of Malaysian law
and certain general corporate matters of our Group;
– VI-1 –
APPENDIX VI DOCUMENTS DELIVERED TO THE REGISTRAR

OF COMPANIES AND ON DISPLAY
(j) the Philippines’ legal opinion issued by SyCip Salazar Hernandez & Gatmaitan in respect
of Philippines law and certain general corporate matters of our Group;
(k) the Vietnamese legal opinion issued by Vietnam International Law Firm (VILAF) in
respect of Vietnamese law and certain general corporate matters of our Group;
(l) the material contracts referred to in the section headed “Statutory and General
Information – 2. Further Information about our Business – 2.1 Summary of material
contracts” in Appendix V to this document;
(m) the written consents referred to in the section headed “Statutory and General information
– 5. Other Information – 5.7 Qualifications and consents of experts” in Appendix V to this
document;
(n) the service contracts and letters of appointment referred to in “Statutory and General
Information – 3. Further Information about our Directors and Substantial Shareholders –
3.3 Directors’ service contracts and appointment letter” in Appendix V to this document;
(o) the terms of the [REDACTED] Share Incentive Plan; and
(p) the Cayman Companies Act.
DOCUMENT AVAILABLE FOR INSPECTION
A copy of a list of awardees under the [REDACTED] Share Incentive Plan, containing all
details as required under the Listing Rules, will be available for inspection at the office of
Latham & Watkins LLP, at 18/F, One Exchange Square, 8 Connaught Place, Central, Hong
Kong, during normal business hours up to and including the date which is 14 days from the date
of this document.
– VI-2 –

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The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for

the contents of this

J&T Global Express Limited

J&T Global Express Limited

Joint Sponsors and [REDACTED]

[REDACTED] and [REDACTED]

IMPORTANT NOTICE TO PROSPECTIVE INVESTORS

GLOSSARY OF TECHNICAL TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

INFORMATION ABOUT THIS DOCUMENT AND THE [REDACTED] . . . . . . . 91

DIRECTORS AND PARTIES INVOLVED IN THE [REDACTED] . . . . . . . . . . . . 95

CORPORATE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

INDUSTRY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

HISTORY AND CORPORATE STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

CONTRACTUAL ARRANGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

CONTINUING CONNECTED TRANSACTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 230

DIRECTORS AND SENIOR MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235

RELATIONSHIP WITH THE CONTROLLING SHAREHOLDERS . . . . . . . . . . . 248

SHARE CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252

SUBSTANTIAL SHAREHOLDERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262

FUTURE PLANS AND [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320

STRUCTURE OF THE [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335

HOW TO APPLY FOR [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344

APPENDIX I ACCOUNTANT’S REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . I-1

APPENDIX II [REDACTED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1

APPENDIX III REGULATORY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . III-1

APPENDIX IV SUMMARY OF THE CONSTITUTION OF

APPENDIX V STATUTORY AND GENERAL INFORMATION . . . . . . . . . . V-1

APPENDIX VI DOCUMENTS DELIVERED TO THE REGISTRAR OF

Saudi Arabia Singapore

No. 1 in Southeast Asia 14.6Bn Parcels Delivered Partnering with Leading

1. By parcel volume in 2022, according to Frost & Sullivan

Southeast Asia China New Markets

2023E 2027E 2023E 2027E 2023E 2027E

In billion In billion In billion

2023E 2027E 2023E 2027E 2023E 2027E

E-commerce penetration rate

Source: Frost & Sullivan

Country Headquarters Strengths of Regional Sponsor Model

• Formulate the overall operational

Regional Sponsors 9 Able to adjust local operations

9 Overcome multiple operational

We have experienced significant growth since we commenced operations in Indonesia in 2015

Year ended December 31,

Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,535,425 4,851,800 7,267,428

Non-IFRS measures (unaudited)

Southeast Asia . . . . . . . . . . . . 1,153.8 2,160.8 2,513.2 47.6% 22.5%

• Independent e-commerce enabler, connecting marketplaces and merchants to new markets

• Adaptive technology system and continued focus on innovation to empower global

• High-quality services catering to regional customer and market needs; and

• Entrepreneurial and experienced management team and regional sponsors dedicated to

• Expand into new markets and new service offerings; and

• Invest in innovation, technology and environmental sustainability.

• Our technology system is critical to our operations and growth prospects.

The registered shareholders of

Other PRC and Indonesian Note 1 PRC and Indonesian

legal and beneficial ownership

WEIGHTED VOTING RIGHTS STRUCTURE AND OUR CONTROLLING

We received multiple series of equity financing from our Pre-[REDACTED] Investors to