Good day, everyone. Welcome to J&T Express 2026 Q2 operational results conference of J&T Express. I would like to remind everyone that you will be muted before the Q&A section. Before the end, we're going to have Q&A. If you'd like to ask question, you can go to, press star and one. One to ask your question. If you'd like to cancel, please press star one and one again. Now I would like to give the floor to Frank, the moderator of the conference.
Hello, everyone. Welcome to J&T Express 2026 Q2 operational results conference. This is Frank. All the presentation materials for the meetings have been distributed to you via email and uploaded to our website. The management presenting today, including Dylan, CFO of J&T Express, and Haibin, Director of Investment and Capital Markets. The conference will be consisting of two sessions. First of all, Haibin will be talking through the company's business performance for the second quarter of 2026, and then we're going to open the floor for Q&A, during which the management will address your questions. Now I give the floor to Haibin.
Hello, everyone. Welcome everyone to attend this Q2 of 2026 operational performance announcement of J&T Express. Please allow me to give you the report. The group's total parcel volume reached 9.18 billion pieces in Q2 2026, representing a year-on-year increase of 24.2%. For the first time, we have hit the milestone of handling over 100 million parcels per day on average, making this one of the very few couriers operational operators worldwide that with a capacity of consistently processing over 100 million parcels daily, the marks of global expansion.
Except for the other markets, you can see that we have been seeing a 32.3% of the percentage against the total in Southeast Asia and other international markets. Now taking a look at the Southeast Asian markets. In total, we've been seeing a kind of daily parcel of 2.75 billion pieces in the second quarter with average daily volume of 30.3 million pieces, a year-on-year surge of 63.2%. The key growth drivers behind were, first of all, the e-commerce penetration rate across the Southeast Asia countries is rapidly upward trajectory, and the fluctuations, the macro environment has not eased the long-term growth dividends for the e-commerce sector.
Second, our e-commerce platform clients kept the right pricing, the local investments to the other promotional activities, the free shipping and the others, expanding the very good progress, and which drive the e-commerce clients and the companies to achieve the robust growth. We have persistently with a strategy of developing off-platform parcels alongside which the continuous improvement of our product planning capacity is realized and service qualities and brand influence were realized as well. Meanwhile, our platform has raised competitive logics requirement for the leveraging of cost and pricing advantages as with solid network capabilities, and we have widened the gap against competitors and further elevated our industrial standing. Next in China, the parcel volume in China reached 6.2 billion pieces in the second quarter, with an average daily volume of 68.2 million pieces, representing year-on-year growth of 10.6%.
The recovery of our business volume growth were recorded high in Q1 with China, with a higher sustainability. The total year-on-year growth of the domestic courier industry stood at 5% from January to May. Growth focus of China courier industry has shifted merely pursuing parcel volume to the sustainable growth, featuring the coordinating improvement in scale, quality, and efficiency. The volume also grow in China has slightly outperformed the industry average, consistent with our guidance that we have issued for the start of the year. We have consolidated our core logistics network, enhanced timelines and service quality and cost control capabilities, boost the technology empowerment and also stronger service capabilities that lift the customer satisfaction. At the same time, we've been improving our brand high quality and the other areas as well, driving growth in high volume parcel growth.
For the other markets, the total volume reached 210 million pieces in the second quarter with an average daily volume of 2.3 million pieces, representing a year-on-year growth of 136.5%. The parcel volume growth in these other markets has accelerated for five consecutive quarters, mainly due to the following factors. First of all, the other markets boast the relatively high per capita GDP and per capita consumption volumes, maintain low e-commerce penetration rates with per capita parcel volume far below those of China and Southeast Asia, leaving the ample potential for development local e-commerce platform. Second, the company continuously export courier operation experience accumulated in China, Southeast Asia and other markets, invested automated sorting equipments and optimized the overall efficiency and meet the rapid growth local courier demand and lift the overall efficiency.
Third, our service quality and capabilities in Latin America has gained recognition from local clients. We are gradually deepening our cooperation in the Mercado Libre and largest e-commerce platform in Latin America. Lastly, in other markets, we maintain close global cooperation with the Chinese e-commerce platforms and have achieved a very remarkable growth in investment as well to boost consumption. Also this quarter, we have process ahead with a global expansion that powered overseas markets with a leading domestic logistics operation experience through multidimensional initiatives, including exporting logistics equipment overseas, replicating the mature business model, the professional talents, leveraging AI capabilities as well. Also, in terms of our equipment export, OSS, the group wholly-owned equipment subsidiary.
There was four chain services covering the customized R&D, massive production and on-site installation and commissioning, as well as the on-site operation and maintenance and support the upgrading of J&T Global Network. OSS has recently been seeing very good growth. We have a project with the Terminals Network Station in Indonesia. Of the equipment that we put in use, we're going to have the sorting and handling capability improving by roughly 40%, with a peak rose to approximately 150%. In capital markets, the company was officially included as the constituent stock of Hang Seng Index in June of 2026, marking J&T successfully entered the rank of Hong Kong-listed blue-chip stocks.
First, we have attracted buying orders from index tracking ETFs and passing allocation capital. We further raise the company's secondary market visibility and liquidity, boost our willingness of overseas sovereign fund and long-term institutional investors to allocate capital and help us to globalize our shareholder structure. In terms of the shareholder returns, the company has continued to reward the shareholders via share buyback. As of June 30th, 2026, the company has repurchased a total of 179 million shares since its IPO, with aggregate buyout expenditures reaching HKD 1.39 billion. On June 25th, 2026, the company announced the approval for a new share buyback performance and raised the total buyback in the 2 billion shareholders, and also sustained the return to shareholders. At this market, we are finishing this performance announcement for Q2 2026. Now we concern the Q2 financial results.
Regarding these financial figures, the company only released semi-annual and annual disclosures and generally do not update performance guidance for the quarterly basis. This exchange is limited to operational data only and no discussion will be held on financial figures. Thank you.
Now we're going to have the Q&A. Let's have the first question. The first question is from Fan Qianl ei from Morgan Stanley. Please, you have the floor.
Thank you very much, moderator and management for giving me this opportunity to ask questions. I have two questions. The first question is about the Southeast Asia, the per unit profit, whether this is impacted by oil price and Forex. We know that you don't comment on the financial figures, but whether or not you're going to share with us some of the qualitative figures and comment.
Second question is that, just now you have mentioned that in those new markets and emerging countries, what about the progress about the second half of the year and also the next year as well? How do you think about this opening of new markets?
Right. Thank you very much. Let's answer the very first question. First is about the oil price. Actually, as you can see that we have been seeing a very good progress growth, which is in line with our guidance provided in the beginning of the year, so that it is quite stable and the local e-commerce market is growing quite well. Overall speaking, we do not have a big impact as well. In terms of the petrol price, in terms of the overall impact on our profitability and the overall cost, we have already stated the impact to you previously.
The oil price is accounting for a very low percentage of our total cost. We are at the normal stage. We can have increase of our efficiency and on the delivery side, we're going to see all new energy vehicles adopted. In different regions, we're going to see the fuel price subsidies, overall speaking, offset a little bit about this increased oil price. Overall speaking, we are maintaining the guidance, not changed. At the same time, in recent years, we have been seeing that for the oil price, the prices have been dropping from the historical high. I think that, with regards to this particular model, we have more mature model to deal with that. Second, the overall impact has already becoming less versus that in April. The particular impact to our operation is quite controllable.
In terms of foreign exchange, I think that it is following the same concept. First of all, in different countries, our overall businesses are still done in local markets with the local currency. This is not impacting too much of our local business. In terms of different countries, the impact of the Forex will be a little bit different. Probably you can see that Indonesian currency has been depreciating, but in China and Brazil and Mexico, we've been seeing the appreciation of the currency. In Malaysia, the Forex is quite stable. Overall speaking, you can see that we can see a very good offset of the Forex across different countries in the world. Overall speaking, this is also quite controllable.
Thank you very much. This is Dylan. I will answer the second question.
I believe that you should be quite taking care of those markets that we are newly opening. In Q2, we are entering Colombia in starting the operation of courier service. Overall speaking, you can see that the volume is actually growing. We are connecting with some different platforms. You can see that we have already entered into the local market with the very first cooperator. In terms of the new markets that we are operational, we have been talking about this in different conferences with everyone. I think that in South America, this is going to be another South Asia market in the world. It is quite potential. We're going to enter into Peru and the other Central American countries. Latin America will become the second South Asia market in our total portfolio.
Except for the Latin America, probably you've been paying attention to our progress in U.S. and Europe. In the U.S., at the current stage, we are still planning. In the U.S., we have different plans and are under assessments and evaluation. Be it which plan that we adopt to enter the U.S., we can guarantee that we are compliant and operating in a low-risk fashion in the United States. In Europe, we are going to have different kinds of ways of entering Latin America. In terms of the choices of the country, we've been already upgrading with you that those big countries in Europe are some of our considerations. At the current stage, you can see that we have a very huge demand that is not been adopted.
From our perspective, overall speaking, we are now doing the investigation and also starting to plan for Europe. For those newly open countries, we have certain criteria. When the parcel volume reached a certain stage and operational for a while, we are going to announce our expectation to everyone. The current stage, it takes time for us to have any progress in the Europe, and when we have new updates, we're going to notify everyone.
All right. Thank you very much, everyone, for your answers.
Thank you very much. Let's wait for another question. The next question comes from Zhu YuBo from Caitong Securities.
Hello, everyone. All right. Hello, good morning, everyone. Dear management, my question is about the overall growth rate. In Q2, the growth rate is pretty good. We have been seeing some of the incorrect and imprecise figures during the middle.
I think that this year in Southeast Asia markets and other markets, whether we need to up-regulate the overall growth expectation, because in this interim report, this is much better than the announcement made in the beginning of the year. The second question is that in terms of the momentums and drivers of the growth, this is due to the industry growth and the overall other sectors. In Southeast Asia and Latin America, what are the key drivers behind the overall growth? If we're looking into the future next two to three years and in terms of the overall growth, what do you set this growth drivers and your growth plan, and how do you balance these two?
Thank you very much for this question. Let's answer the very first question.
We can see that the current stage, the growth rate, is pretty much similar to the guidance provided in the beginning of the year. We have already stated that we're not going to be talking and discussing about the overall guidance related figures. As for the key update, we are going to give you an announcement and some of the answers during the interim result announcement. Second question is about the key drivers behind the overall growth in Southeast Asia markets and how do we balance in between different factors. As you can see that in the very beginning, we have already illustrated that in Southeast Asia market, we have very good macro economy, for instance. Overall speaking, the e-commerce platform penetration is not that high. We are going to improve that further.
Second point is about those infrastructure of the e-commerce platforms in Southeast Asia market. At current stage, we're at a very fast growth track, and this is providing with us very good infrastructure support. The third, our customers have invested more and further into this particular area to boost the consumption habit over e-commerce platforms in Southeast Asia. Fourthly, we're talking about the overall cost and efficiency in Southeast Asia market are now outperforming that of our competitors. While we have a positive growth in Southeast Asia market, we are going to further improve the productivity and focus on high quality delivery as the key targets. I truly believe that the overall growth in Southeast Asia market will be actually a bit higher than the industry average.
Right. I would like to supplement on the overall question, which is about the growth rate for the next two to three years also. Okay. In terms of this particular answer, we expected that this particular growth will be actually faster. Of course, in the beginning of the year for the Frost & Sullivan industrial data, it mentioned the overall growth rate of the courier service in Indonesia, which is going to be 30% above and double-digit growth for the next five years. That is why we are very much confident that we are going to outperform that of this expected figures. Because we have quite proactive marketing strategies and we have investment on technologies and infrastructure. Also, we are exploring the non-platform businesses. Overall speaking, we are very much confident that we are going to outperform that figure.
Another one is about the investment from our clients and customer side. As you can see that in TikTok, Temu and SHEIN in Southeast Asia markets. We can see that in this particular recent two years, they've been investing heavily and continuously into this area. They have different ways of trying to build and nurture people's mindset of consumption online. At the current stage in Southeast Asia market, we hope that together with our e-commerce key accounts, we are going to further improve the repurchase rate online and help the consumers to actually buy more from e-commerce platforms and help the e-commerce and online shopping penetrating more. This is going to be our future outlook.
Thank you very much. Understood. Thank you very much, Dylan and Haibin. I don't have any further question from my side. Thank you.
Thank you very much for your question. Now let's wait for the next one. Next question comes from Steve Chu from Goldman Sachs.
Hello, and good morning, Dylan and Haibin, for accepting my question. Thank you for this wonderful performance in Q2. My question is a very quick one. As you have already mentioned, you have emphasized on the collaboration in Latin America with Mercado Libre. I would like to understand the overall kind of platform and how do you actually touch upon, and how to penetrate into those local markets. My second question is about the considerations of entering to Europe. As you have said that in Europe, probably you are going to have asset-light fashion to enter the Europe market as you're seeing that in Latin America. I would like to understand expectation of the long-term profitability in Europe.
Do you think that this is pretty much referring to that of Latin America or going to refer more to Southeast Asia in a sense?
Thank you very much for this question. Let me answer the first question with regards to the collaboration with Mercado Libre. Actually, we have a very close contact with Mercado Libre. As you can see that in recent years, in terms of the kind of logistics they are paying attention to that in China and set up the offices here in China to actually do some of the supports. We are talking about South America, we are also emphasizing a lot the collaboration with them. At current stage, Mercado Libre offers over 100,000 pieces to us, and with 200,000 in the peak season, we do see a very potential growth in the future.
While at the same time, we are collaborating with Mercado Libre, you all know that they have a big strategy, which is that they hope to cover more e-commerce customers that are long tail fashions and in order to have long-term demand acquired. In local markets, our network of service quality as well as the number of the service networks, we are now trying to emphasize on the increase in terms of the numbers. We started to collaborate with Mercado in the mid of last year, and now we are at the very fast ramping up stage. I believe that at the current stage, the e-commerce platforms from China and Asia are now the majority of our contributors to our business. Mercado Libre is going to be very potential in the near future. We hope that we're going to grow that in the short future. Thank you.
Thank you very much. Second question is about Europe. We know that in Europe we are at very early stage. In terms of the total investments and the other kind of areas, it is still at the early stage. We'll give you a timely update in the future when applies. Still, this is going to be beneficial for us to enter into Europe. First of all, we are going to see a much smaller investment in the future. In terms of the line haul kind of vehicles in Europe is a quite mature market, and we don't need to have a lot of CapEx in Europe. Second is that the launch time will be much quicker and more efficient. The most important thing is that in the future, we have a lot of flexibilities in Europe.
In the future, we believe that we are going to be very flexible in choosing the franchise model or the other models as well. This is the overall expectation, but in terms of figures, we don't comment in this meeting. Please bear with us. Thank you.
Right. Thank you very much, Dylan and Haibin.
Right. Thank you very much for the question. Now let's wait for the next question. The next question comes from Liu Gangxian from CICC.
Hello, thank you very much. This is Gangxian from CICC. Thank you for this opportunity, and congrats on another wonderful performance in the second quarter. I have a question which is that, now this is an AI era, and you have mentioned some of the AI applications in your business.
I would like to ask you that in terms of AI, what kinds of investments that you had and what kind of achievements that you have had? Second question would be that, in terms of the regulation environment and overseas, how do you comment on that? Overall speaking, as we have mentioned that this was brought by the investment from our customers, and of course that we do have not a very good competitiveness, but overall speaking, in Indonesia, we had some kind of investigations and the U.S. senators, we have been seeing also some of the investigations going on. From this, do you think that this is going to be something regular and going to be routine in the future?
In the future, in terms of the regulation environment, do you think that this is going to be providing some of the turbulence to your business or interference and some of the conflicts may happen? How do you comment on this?
Right. Thank you very much for this question. First of all, I would like to answer the question with regards to artificial intelligence. As for AI large language model in 2025, while it was already very much popular and we've been seeing all kinds of different AI applications. For logistics industry and for J&T Express, definitely speaking, we've been spending a lot of time in trying to research on the possible viable ways of helping us to increase our efficiency and lower down the overall cost with AI technologies and LLMs as well.
At the current stage, we are going to see that there is going to be a very good improvement and helping us to have expectations of the parcel volume handling, the intelligent assistance, intelligent logistics and the intelligent sorting, et cetera. These are all going to help us to increase efficiency and lower down the overall cost. Secondly, in the all kinds of different groups, we are going to also try to enhance the efficiency of our meetings and communications. As for logistics industry, in AI, we are more a applier and the company of using AI and developing all kinds of different applications on top of the existing technologies. Now, at the same time with our strategic partner, SF Express, we are also communicating with them in terms of the adoption of AI technology.
We truly hope that AI is going to be of great help to lower down the overall cost, increase efficiency in this area. This is pretty much about the artificial intelligence. Right. Thank you. Let me answer the second question, which is about the potential geopolitical tensions and some of the investigations that might go on. Just now, you were talking about this particular kind of event of TikTok in Indonesia. I believe that in the mid of April, we had this kind of investigation going on. Overall speaking, we understood that at the current stage, for different customers and also ourselves as well, we are going to make the compliance as a very important red line.
Be it, you're talking about the local logistics association, or in terms of the communications with the politicians and the local government or some of the regulators, I think that this is a normal behavior at current stage for the key customers, say, TikTok or Temu or SHEIN, et cetera, in South Asia, experiencing any non-compliance? No. Second point is about the overall market. As we have already elucidated that before entering to the market, we have to be making sure that we are compliant and we are safe in terms of operation. Please do not worry about this.
All right. Thank you very much.
Thank you very much for this question. Next question comes from the Changjiang Securities , Lu Sijia. Please, you have the floor.
Hello, dear management, dear Haibin and Frank and Dylan. Good morning.
I would like to ask you the question that in the streamline, I believe that in this quarter you had actually 30% on 40% of the growth and reached 114 units of the streamline equipments. We would like to understand that in the emerging market, how do you think about this overall CapEx, and especially in Latin America? Second is that in emerging markets, how do you actually comment on the capacity planning? How much of the overall growth you can support with this existing capacity? Third question is that, you can see that in South Asia market, in terms of the number of partners, you're optimizing that figure. How do you actually comment on this particular improvement of your operation efficiency while you are doing integration locally?
Right. Thank you very much.
First of all, as we have already witnessed that the network service delivery stations increase, we have increased three units of automation assembly line. The current stage, it is growing as well in other countries, helping us to boost our parcel volume. Overall speaking, in the second half of the year, when there is actually a much high peak season, we've been seeing positioning upward to increase the coverage rate as well as the readiness of our capacity. In the future, this is going to be the same logic. You can see that the automation lines in Latin America, it is not that rich in Latin America. At the current stage, we have 14 units of automation line, but versus the high growth in Q2, I don't think that this is enough. In the near future, we're going to see further CapEx on this side.
In terms of the overall CapEx, at the current stage, we're going to adjust the guidance of $700 million-$800 million provided by the guidance of the beginning of the year. This is not going to be changed, covering China, the South Asia, and other markets. In terms of other markets, we are really emphasizing a lot on the efficient use of CapEx. Second question is about the South Asia market and in terms of the overall network number. In the second quarter, as you can see, that the overall network number is not changing. Overall speaking, this number is quite small. That is to say that in South Asia market, we are trying to find more excellent franchisees. Not only they're going to helping us to expand the network or service network.
Second point is that at the current stage, while we are improving our efficiency and improving the automation level of the different service network in different areas, you can see that we are now updating the processing lines to a automated ones. In the same service network, under the same capacity, we're going to see a better and wider coverage and taking more parcels. This is going to be overall trend. In South Asia market, be it the equipment and the service network, the overall planning is there for the purpose to support the overall growth of our demand from our consumers and satisfying the customer's demands as well.
All right. Thank you very much, Haibin and Frank for the answers.
Thank you very much for your question. Now we have the question from [Jenna Pan] from Guolian Minsheng.
Hello, Dylan and Haibin. Good morning.
The IR colleagues, good morning as well. I have two questions for my side. The first one is about the emerging markets and other markets. As you can see that the other markets have been witnessing the acceleration of the growth than the Q1 all the way to 136% of the growth rate. We would like to understand that if we exclude the impact from Middle East or the Peru and the other countries. From the standpoint of Latin America as a market, do you think that the overall growth rate will be higher? Do you think that there is any momentum and drivers behind the further growth? Second question is about the market of China. You can see that China is outperforming a lot versus the industry average, which is 5%-6%. In China you have witnessed a 10% of the growth.
I would understand that behind this change and improvement, whether you have changed a little bit your competitive edges or strategies, and what are the reasons of having such a sharp change?
All right. Hello. Let me answer the very first question. As for other markets, as for Latin America and non-Latin America markets that you would like to understand, right? Okay. Simply put, Latin America should be the actually most potential market and because of the large population base, but low penetration of e-commerce platforms and our key platform accounts have witnessed a lot of investment in this area in Latin America. Most of the growth are actually driven by Latin America. Middle East wise, we had received a little bit of the impact due to war and conflicts and the other reasons. We had a single-digit growth in Middle East.
The overall kind of rates and overall growth will be driven by Latin America.
Okay. Let me answer the second question. Now, outperform the industry average. Indeed, you can see that in China market, we have been seeing a lot of works conducted. While we enter into the China market, we are going to actually see a much better branding capability and the service network quality will be actually enhanced, and we are going to see a much better penetration. The second issue I would like to say is that the current stage, we do see a kind of shortcomings, and we are going to already mitigate and penetrate. At the same time, in terms of the overall strength, we are going to further enhance that and helping us to have sustainable growth.
Third point is about the capability of acquiring small and medium-sized customers, and we are improving the word of mouth and our overall quality. Overall speaking, this is helping our quality improvement as a whole. We are always saying that in China, the time is a friend of J&T Express. While with time, we are going to further enhance the efficiency, the quality, and the overall level of influence and impact. More customers are going to realize that J&T Express is right choice for them. Overall speaking, this is very good answers for the overall growth in China market with a very high number.
Thank you very much, Dylan and Haibin.
Another question is that from a platform standpoint, as we can already see that the overall growth of J&T Express, is it actually because of your improvement of market share or is it because of the heavy investment of your customers?
Okay. In China market, I think that most of the customers of small and medium-sized enterprises, that they are choosing the courier service delivery company and supplier. I think now at the current stage, we're improving the percentage of those excellent customers against our total portfolio of customers, and that's the reason for our growth.
Okay, understood. Thank you very much.
Thank you very much. Let's wait for another question. Next question comes from Lin Shan from Huatai Securities. Please.
Thank you very much, Dylan and Haibin and IR team members.
I would like to have a follow-up question in terms of the positioning in Southeast Asia in the e-commerce area. You can see that for Shopee in certain countries, they had a very good and highlighted performance of the growth of their parcels. I would like to understand that in the past half a year, do you think that for TikTok or Shopee, did you witness some of the structural changes of number of parcels from these key e-commerce customers? Do you believe that you are going to become the supplier of courier service to Shopee again in the future, while Shopee is improving its overall volume? How do you think about this particular thinking in becoming the service supplier again for Shopee?
All right. Thank you very much for this question.
I think that for our peers, it is not convenient for us to comment on the performances. Overall speaking, in Southeast Asia market, the penetration of e-commerce is actually growing at the same time, and this is exactly what we have believed always. You can see that in China, we have over 100, and it is only 30-40 in the Southeast Asia market. I think that while we are nurturing the mindset of the consumers to shop more online and using e-commerce platforms, I believe that this is going to be mutually beneficial for both our customers and ourselves as well. E-commerce logistics is almost all the businesses that we have. As for those e-commerce platforms that are building their logistics by themselves, they only actually now have a department supporting them. For J&T Express, we actually came back to China a decade ago.
For the logistic models and talent model, we copy that to the Southeast Asia market. For the past five years, we have advantages in terms of our overall cost and the pricing. This is exactly going to be our optimization happening for the next half a year. It is just like in the first half of the year in the Southeast Asia market, we had a very thorough investigation and field research and trying to explore those methods in improving our efficiency. Overall speaking, we are going to make full leverage of the fundamental in Southeast Asia market and making us becoming a very excellent courier service provider. In the future, with time, I believe that e-commerce positionings in Southeast Asia market is going to be changing. Be what to be said, I truly believe that this is a very good opportunity for every one of us.
All right. Thank you very much. No further question from my side.
Thank you very much. Now let us have the next question. Next question comes from [Limu Jing] from [audio distortion] Securities.
All right. Thank you very much, Dylan and Haibin, for the time. I have already witnessed that you have delivered a very potential and strong performance. I will have two questions. First one is about the Southeast Asia market. I would like to say, would you like to provide us with the ranking of the growth of the number of parcels in each country? Second is that, could you actually comment on the status quo of the franchisees in Southeast Asia market? What is the percentage against the total? Do we have expected figures that is going to be witnessed for the rest of the year?
Okay. Thank you very much for this question.
As for the first question, in terms of the overall growth of major countries in South Asia, they are actually quite good and quite even. We don't have this particular ranking per se, but if you want to ask me to give you a ranking, we believe that the overall growth in some of the South Asia countries are going to be pretty good. Second question is about the overall situation of franchisees. As you may know, that in Southeast Asia, used to be direct operational in the South Asia market. When we entered the China market, we already know and learn the capabilities of using advanced technologies to actually do this. In South Asia market, it is already 35% or more franchisees with us. Whether it's going to be higher in terms of franchisee model in South Asia market.
To be honest, that we are the only company that operates both in South Asia and China. Franchising is important as a business model, we don't want to do this without any ground, because we have to find those franchisees that are having similar brand culture and corporate culture and wish to actually survive with us for a very long time. We don't need to have local franchisees, so that we are going to have a very good network built. Overall speaking, we have to increase the percentage further. At the same time, we are not stopping for searching the excellent franchisees. This is always going to be a progress.
Okay. Thank you very much. No further question from my side.
Thank you very much for your question and answers from the management. Let's have the next question.
Next question is from [Li Yingpeng ] from Guojin Securities.
All right. Thank you very much. I am [Li Yingpeng] from Guojin Securities. Thank you very much for this opportunity. First of all, congrats on this wonderful second quarter performance. I have two questions. The first one is about Latin America. As for the quarterly figures of Mercado Libre, you can see that in Latin America, they are actually improving the number of parcels and ASP is also growing as well. Especially in Brazil, I think that they are rising very quickly. My question is, do you believe that this particular overall trend is going to have excessive growth for you, and it is going to be helpful for J&T Express to outperform the market competition?
My second question is that, would you like to give us a sharing about the non-platform businesses and how the collaboration is going on with SF Express?
Okay. Let me answer these two questions. First one is about the other markets, especially Latin America and Brazil, for instance. We have already mentioned that briefly, that last year we started the collaboration with Mercado Libre in South America. Overall speaking, in this particular new market, we have more diversified customers profiles. In different countries, our investment intensity should be different. Overall speaking, I think that in Latin America, these are all the platforms that have been already acknowledged. From [Codel], from the mid of last year, we had the collaboration with them.
From a long run, I do believe that for these key accounts, the particular competition with the other e-commerce platforms are going to boost the online consumption demand. While we are expanding our network coverage, we're going to see more consumers that we are covering, and we are going to collaborate with more e-commerce platforms. In the plain language, the more severe the competition is, the usage rate and coverage rate and penetration rate of our infrastructure in the local market will become. In Latin America, this is pretty much like the South Asia market six to seven years ago, pretty much about that in Latin America. Next question is about the non-parcel volume and non-parcel business. I mean, non-platform business. As you can see that, as we have already stated, that we are keeping updating on the particular non-platform business.
As you can see that for some of the e-commerce and non-e-commerce customers, overall speaking, we do see the overall growth of these customers. The overall growth rate is not as fast as that of the platform businesses, so the penetration is only 10%. We have two thoughts, or several thoughts. First is that in terms of our overall product, we could actually give some of the high efficient products with arrive on the same day or they arrive in 24 hours. At the same time, we are going to increase our capabilities of the parcel collection and asking our clients to mail the parcel in the network service station. Thirdly, we are now also enhancing the capabilities of our customers and helping us to do a lot of sales. This is going to be the key ways for us to acquire those non-platform customers.
We are keeping doing that, overall speaking, the growth rate is of the parcel number in those areas is not as fast as those, the e-commerce customers. It's only 10% in terms of our total percentage against the total.
Thank you very much for the answer.
All right, due to limit of time, we're going to give the floor to the last question. Okay, last question is [Guo Jun] from Xingye Securities .
Okay, good morning. This is [Guo Jun], thank you very much for this opportunity. First of all, thank you very much for this very wonderful performance. I would like to actually have some of the detailed question with regards to the performance in Q2. We believe that Q2 is a very special quarter and some general quarter as well. We've been seeing some of the observations and experience in Q2.
Would you like to share with us more details in Q2? For instance, in the front and middle segment of Q2, whether there were big fluctuations of the overall demand and whether or not there is any kind of impact to the retailing businesses. What about the local government policy implementations in Q2? How are you going to plan to actually enhance the cost reduction and efficiency enhancement? Would you like to share with us as many details as possible? Second question is, could you help us to recap that during the COVID-19 period, how measures or what kind of measures that you have taken to overcome the difficulties during the COVID-19 period?
All right. Thank you very much, Mr. [Guo], for this question. I don't know whether I have understood you quite correctly, I would like to try to answer.
The first question is that the oil price increased due to the conflict of the U.S. and Israel, as well as Iraq. I believe that for this particular war current stage, it has a big impact on the overall oil price. We had a very high oil price as well in Western countries. I think that for the management as for this impact to the South Asia market, yes, indeed, we had some of the thoughts. Overall speaking, from a macro economy standpoint, in South Asia market, the local governments are doing a lot. For instance, Indonesia is pretty much Vietnam is so much dependent on the importation. As for Vietnam, they are thinking about all the methodologies. For instance, they are thinking about importing from the U.S. or Europe, like Russia, that solves the question.
This one is about the overall Thailand. I think that we have all kinds of different ways of trying to solve the challenges of the raw oil supply. Overall speaking, we have a very good guarantee of the supply of the fuel for some of the oil adding and refining, we have some limitations, but at the same time, we are being quite persuasive. This is going to be something that we can guarantee. Another question is about the oil price, and it used to be above $120 per barrel. I think that the response time was quite different, and the way of responding to that was different as well from different countries.
I do believe that overall speaking, the overall service prices are keeping rising and dropping without affecting the international market. As for the logistics company, first of all, the fuel cost and the petroleum cost is not as high as we have expected against the total. At the same time, you can see that it is pretty much a certain percentage against the total operational cost. I think that it's only a single-digit percentage, and not that high. Second point I would like to say is that you have to think about your own solution. In terms of this particular market share and increase, we are pretty much designated on this. Third point is that for the fossil fuel, the overall prices were increasing a lot.
At the same time, we are going to use more the new energy trucks and vehicles and new energy line haul trucks, et cetera. Overall speaking, we are going to see offsetting of the overall high fuel price. At the same time, we are thinking about the solutions and measurements together with our customers. As for a commodity, if the price is increasing, I believe that the consumers should have some expectations over the overall price increase. I do believe that in the past years, we have very, very little impact. Also, there is another question which shows the concern of some of the investors that if the oil prices are increasing further, the macro economies would be collapsed. We are not economists, but still you can see that because of this particular war and conflict, we do see a kind of different impacts.
Of course, that at the current stage, we are seeing some of the local South Asia countries to actually make more preparations of diversifying their fuel sources. Overall speaking, all the countries are having some of the pre-plannings. Even if we're talking about the macro situation in China, right? We have fluctuations of macroeconomic development in the past decade in China. In South Asia market, the per capita parcel volume is way less than that of China's. At the current stage, the macro economy is not that heavily impacted in South Asia market, let alone that we still had a quite performative market. Second question, as you have mentioned, the COVID-19 period, would you like to understand some of the risk mitigation methodologies or some of the other details?
Yes, I was talking about some of the impacts during the COVID-19 period from the outside of your company. This time we've been seeing some of the similar conflicts that we are experiencing. How that you are going to deal with that as you did in the COVID-19 period?
Okay. Thank you very much. First of all, I have to say that during the COVID-19 period, in those days, we had the big growth as well because our overall network has already completed in South Asia market. Back then, a lot of leaders joined us. Overall speaking, the online shopping was boosting during COVID-19 period. Next is that in Malaysia and Thailand, they also had some of the vouchers delivered to the residents and having some promotional discounts offered to them if they shop online.
The COVID-19 period was actually the period with a lot of growth of e-commerce businesses in the past several years. Next one is about the advantage of our network ability. We are going to be quite swiftly responding while the time is difficult. During COVID-19 period, there was the situation for South Asia market, and this should be the same for China, right? In 2022. We had a lot of guarantees provided. Overall speaking, we organized a kind of a network on the ground. As long as there is any demands, be it is in a conflict or in a war, our network will be of great use. At current stage, you can see that in the second quarter, we've seen a lot of investments and by expanding the network coverage and the number of franchisees.
Overall speaking, we're enhancing our network ability in South Asia and other markets in order to be ready for the peak season to arrive in the second half of the year. This particular expansion of our network is there for the purpose of mitigating the risks during some force majeure.
All right. Thank you very much for the answers. I truly trust your positioning and your advantages as well, and I wish the company to be better in the future. Thank you.
Thank you very much. I think that this is the time and thank you very much for your participation. If you do have any follow questions, please contact our team of J&T Express. This is the end of this conference. You may disconnect now. Thank you very much, everyone.
Thank you very much, everyone, and now you're able to disconnect.