Sealand: The express delivery industry demonstrates significant resilience, with structural opportunities in the sector worthy of attention.

Sealand released a research report stating that in the current macroeconomic background of weak overall consumption recovery and structural differentiation, the express delivery industry has shown significant resilience beyond the consumption market as a whole. The industry believes that this resilience comes from the structural growth driven by multiple engines within the industry. With the continuous expansion of instant retail scenarios and changes in consumer habits, the structural opportunities of this sector are worth paying attention to. The volume of express delivery business is expected to steadily increase, maintaining a "recommended" rating for the express logistics sector. Sealand's main points are as follows: E-commerce express delivery: "Volume Increase" as a cornerstone under the backdrop of consumption downgrading Traditional e-commerce express delivery is the foundation of the industry. In the first half of 2026, the year-on-year growth rate of express delivery volume continued to exceed the growth rate of total retail sales of social consumer goods for the same period, becoming the core window to observe the resilience of consumption. In the current economic environment, its relative resilience to consumption is reflected in two core aspects: first, consumption is further shifting online, and the growth rate of online retail sales has surpassed that of total retail sales of social consumer goods. Secondly, as China's population structure evolves and consumers pay more attention to value for money, and with changes in channel ecology, driving changes in the growth logic of the consumer market. On one hand, lower-tier cities benefit from urbanization and the digital channel sinking to become an important source of market increment. On the other hand, various cities may face the trend of "consumption replacement", leading to a further decrease in the value of parcels per express delivery, giving the express delivery industry a structural advantage in terms of growth rate exceeding that of online retail sales. Integrated logistics: Extended supply chain opens up the second growth curve Integrated large logistics companies represented by S.F. Holding are achieving "desensitization" from the consumption market through business extension. Traditionally, timeliness is an important business for S.F. Holding, but in recent years, S.F. Holding has actively extended its business towards the supply chain and international business. On one hand, with the upgrade of China's industries, companies are gradually expanding their production capacity and market globally. The global supply chain is undergoing profound reshaping, with market volatility and increased competition leading to higher demands from customers for the supply chain. S.F. Holding continues to improve its digital services, not only optimizing logistics locally but also helping customers improve the resilience of their supply chains from a global perspective, building cost and efficiency barriers. On the other hand, the company believes that the demand for supply chain logistics in the manufacturing industry is relatively weakly correlated with the macro consumption cycle and relies more on the industry's upgrade and expansion, becoming an important buffer for S.F. Holding to withstand consumption fluctuations. After excluding the cyclical business of KLN, the revenue from the supply chain and international core business increased by 32.3% year-on-year in 2025. The revenue continued to accelerate in the first quarter of 2026, and the second growth curve is accelerating, with the proportion of revenue from the supply chain and international business expected to continue to increase. Overseas logistics: "Incremental Engine" under the dividend of overseas e-commerce If the domestic market represents the "stock game" and "resilient defense" of the express delivery industry, then the overseas market represents the broad field of "incremental offense". Chinese logistics companies represented by Jitu Express are replicating the express delivery operation experience accumulated domestically in emerging markets such as Southeast Asia, Latin America, and the Middle East. These regions are generally in the stage of continuous development of online shopping, with the growth rate of express delivery volume in 2025 significantly higher than that of mature domestic markets. With the continuous improvement of overseas logistics networks, high growth is expected to continue. The company believes that the continuous expansion of overseas business may counterbalance Jitu Express's performance with the domestic consumption cycle, further strengthening the company's risk resistance. Instant retail logistics: New growth pole under commercial flow changes Instant retail is an important incremental track, with participants led by SF INTRA-CITY building differentiated advantages. With the continuous expansion of instant retail scenes and changes in consumer habits, the structural opportunities of this sector are worth paying attention to. First, from the perspective of sales channels, the channel landscape is becoming increasingly diversified, with brand owners having less dependency on a single platform and greater autonomy in order allocation. Second, in terms of service stability, independent third-party platforms are more suitable for chain brand customers who require higher control over services. Third, in terms of industry trends, the rate of chainization in the Chinese market is still on the rise. SF INTRA-CITY, with deep ties to brand customers, is able to extend its service network in sync with their channel expansion, sharing the benefits of penetration. Risk warnings: Physical goods online shopping demand lower than expected; deterioration of e-commerce express delivery price competition; decreased stability of end-point franchisees; risk of rising oil prices; risk of macroeconomic fluctuations in overseas markets; risk of lower-than-expected growth in instant retail industry, etc.