J&T Global Will Deliver Strong Earnings Growth, Thanks to Rapid Business Expansion of Its Customers

J&T Express primarily adopts the regional sponsor model for its express delivery business, where the national headquarters formulates strategy and execution plans, while regional sponsors operate sorting centers, line-haul transportation, pickup and delivery. Advantages of this model include quick adaption based on regional sponsors’ local knowledge, low capital expenditure, and rapid market expansion. When the regional operating entities’ businesses stabilize, J&T seeks to acquire them from the regional sponsors for shares in J&T, reducing risk of unviable investment.