STO Express Co Ltd

On the evening of September 2, multiple listed companies disclosed progress on share buybacks. Midea Group announced that as of August 31, the company had cumulatively repurchased 99.798 million A-shares, accounting for 1.31% of total share capital, with a total payment of 8.02 billion yuan. Wuliangye cumulatively repurchased 14.7074 million shares, accounting for 0.3789% of total share capital, with a payment of 1.101 billion yuan. Foxconn Industrial Internet cumulatively repurchased 14.0102 million shares, accounting for 0.07% of total share capital, with a transaction amount of 887 million yuan. Metallurgical Corporation of China repurchased 182 million A-shares, accounting for 0.87805% of total share capital, with a transaction amount of 509 million yuan, and also repurchased 65.815 million H-shares, accounting for 0.31808% of total share capital, with a transaction amount of 105 million Hong Kong dollars. STO Express repurchased 24.2313 million shares, accounting for 1.58% of total share capital, with an amount of 339 million yuan. Ultrapower Software repurchased 37.2511 million shares, accounting for 1.89% of total share capital, with an amount of 301 million yuan. Sungrow Power Supply repurchased 3.0476 million shares, accounting for 0.147% of total share capital, with an amount of 325 million yuan.

STO Express announced that Xi Chunyang, the ex-husband of one of the company's actual controllers Chen Xiaoying, has withdrawn his lawsuit seeking confirmation of shareholder status, bringing an end to the equity battle worth 280 million yuan that lasted over seven months. Xi Chunyang filed the lawsuit with the Yuhuan City People's Court in January 2026, requesting confirmation that 20.2842 million shares out of the 40.5685 million STO Express shares registered under Chen Xiaoying's name belong to him, with a corresponding market value of approximately 280 million yuan at the time. On August 3, 2026, the Shanghai Qingpu District People's Court ruled to permit Xi Chunyang to withdraw the lawsuit. The company stated that this litigation will not have a material adverse impact on its daily operations or profits.

The two Tong and one Da have released their June operating data. Business revenue continued to grow year on year, but single-ticket prices diverged. Yunda Holding's single-ticket price was 2.11 yuan, up both year on year and month on month. STO Express's single-ticket price rose 6.03 percent year on year to 2.11 yuan, but fell 0.03 yuan from May. YTO Express's single-ticket price was 2.06 yuan, slightly lower year on year but up 0.02 yuan from May. In terms of business volume, STO and YTO both posted year-on-year growth, while Yunda Holding was roughly flat. He Dan, a director in the Asia-Pacific corporate ratings team at Fitch Ratings, analyzed that the anti-cutthroat competition drive in the first half boosted express companies' profitability, but single-ticket prices will not keep rising. In the second half, the anti-cutthroat competition push is very likely to continue, though the intensity may be relatively moderate, which will help the industry maintain a rational pricing environment and support profit recovery.

STO Express announced that its express service revenue in June 2026 reached 5.475 billion yuan, a year-on-year increase of 26.13%. The company handled 2.59 billion parcels during the month, up 18.58% year-on-year. Average revenue per parcel stood at 2.11 yuan, a year-on-year increase of 6.03%.

STO Express issued an earnings forecast, estimating that net profit attributable to shareholders of the listed company for the first half of 2026 will be between 950 million and 1.06 billion yuan, representing a year-on-year increase of 109.59% to 133.85%. The company attributed the profit growth to the continued implementation of industry policies against cut-throat competition, a rational recovery in pricing, as well as adjustments to its own business strategy and enhanced core competitiveness driven by digital and intelligent transformation.

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.