The Shenzhen Stock Exchange recently issued a review inquiry regarding STO Express's convertible bond project, focusing on the sustainability of earnings growth, gross margins below peers, and the reasonableness of cooperation with new supplier Shanghai You Liansheng. STO Express replied that the scale of the domestic express delivery industry is steadily expanding, coupled with the industry's anti-involution regulatory policies introduced in 2025, express delivery prices per parcel have stabilized and rebounded. At the same time, the company continues to increase investment in transit hub equipment, continuously optimizing operating costs per parcel, with gross margin rising from 4.18 percent in 2023 to 6.41 percent in 2025, making earnings growth sustainable. Regarding gross margins lagging behind peers such as YTO Express and Yunda Express, the company explained that its historical brand premium was relatively weak, leading to a gap in per-parcel revenue, and the pace of cost optimization in transit and transportation segments was slower than comparable companies. As for Shanghai You Liansheng, which was established in October 2023 and quickly became the company's second-largest supplier, the company stated that this enterprise is backed by Doumi Group, possesses mature flexible staffing service capabilities, can undertake large-scale business, and offers competitive pricing. You Liansheng has no related-party relationship with STO Express or shareholders holding more than 5 percent, its service fee rates are broadly in line with other market suppliers, and the transaction pricing is fair and reasonable.
STO Express Co LtdIndustry anti-involution policies stabilize parcel prices, supporting revenue growth.
YUNDA Holding Co Ltd
YTO Express Group Co LtdBecoming second-largest supplier to STO Express, indicating strong business demand.
Backing You Liansheng, which gains major contract with STO Express.