On August 4, the State Post Bureau initiated an investigation into STO Express Co., Ltd.

On the very same day, STO Express (002468.SZ) swiftly called an emergency board meeting and approved the Resolution on Ceasing the Issuance of Convertible Corporate Bonds to Unidentified Parties and Retracting the Application Documents. The company made the decision to halt the issuance of RMB 3 billion in convertible bonds and pull back its listing review application from the Shenzhen Stock Exchange (SZSE).

The SZSE Listing Review Committee meeting, initially set for August 7, 2026, was canceled following the withdrawal, with the SZSE issuing a notice of termination on August 6. The financing plan, which had been set in motion in March, was subsequently put on hold.

The controlling stakeholders of STO Express are its founders, Chen Dejun and Chen Xiaoying, who jointly hold approximately 32.47% of the shares. The largest individual shareholder, Zhejiang Cainiao Supply Chain, backed by Alibaba, owns 25% and plays a crucial role in the capital structure of STO Express.

In 2025, STO Express reported revenue amounting to RMB 55.586 billion and a net profit increase of 31.61%. In the first quarter of 2026, the net profit soared by 94.29% year-on-year.

Following the announcement of the withdrawal, STO Express's stock price underwent a correction.

Market concerns have grown regarding compliance and governance risks. However, the company stated that the termination would not have a substantial negative impact on its daily operations or financial status, and it pledged to actively cooperate with the investigation and implement necessary rectifications.

01 STO Express Calls Off RMB 3 Billion Convertible Bond Issuance

On August 4, 2026, STO Express shocked the market by announcing the cessation of the issuance of convertible corporate bonds to unspecified entities and the withdrawal of all application documents from the SZSE.

Two days later, the SZSE officially terminated its review of the project. From its initiation in March to its withdrawal in August, the financing plan lasted nearly five months before coming to an abrupt halt.

What led to the failure of the financing?

Let's revisit the timeline. On March 16, 2026, the board of STO Express approved the proposal for the convertible bond issuance. On April 1, a provisional shareholders' meeting passed the resolution. On June 1, the SZSE formally accepted the application. On June 17, the company responded to an inquiry letter from the exchange.

The process was progressing smoothly, with the financing review nearing completion.

However, a "hitch" arose involving a subsidiary. On August 4, the State Post Bureau announced an investigation into STO Express Co., Ltd.

According to the State Post Bureau's website on August 4, enterprises utilizing the "STO Express" trademark, brand name, and express waybills have encountered multiple production safety incidents this year, with recurring safety hazards detected during inspections, leading to suspicions of failing to meet unified safety management responsibilities as mandated.

The investigation into the subsidiary directly prompted the termination of the financing. STO Express stated bluntly in its announcement: "After thorough discussions with relevant parties and careful analysis, the company intends to apply for withdrawal." The sponsor, CITIC Securities, also submitted a withdrawal application.

02 Who Holds the Reins of the Company?

Established in 2001 and listed on the SZSE in September 2010 (stock code 002468), STO Express is one of China's pioneering privately-owned express delivery companies and a trailblazer of the "franchise" model in the domestic express industry.

STO Express's core business encompasses a comprehensive array of logistics services, including domestic express delivery, general freight, freight forwarding, and warehousing. By the end of 2025, the company operated over 5,000 independent outlets and more than 55,000 service stations and stores, ranking among the industry leaders in daily processing capacity.

According to Yujingtong data, the actual controllers are the founders, Chen Dejun and Chen Xiaoying. Chairman Chen Dejun directly holds 3.38% of the shares, while his sister Chen Xiaoying holds 2.65%. Through concerted action entities such as Shanghai Deyin Investment Holding, Shanghai Gongzhirun Industrial, and Shanghai Derun II Industrial, they collectively control approximately 34.79% of the company's shares.

Nevertheless, the largest individual shareholder is Zhejiang Cainiao Supply Chain Management Co., Ltd., supported by Alibaba, which holds 25% of the shares, making it the top shareholder of STO Express. Additionally, Cainiao realized RMB 360 million in 2025 by selling Daniao Logistics to STO Express. Alibaba clearly occupies a significant position in STO Express's capital structure.

Other major shareholders include Shanghai Gongzhirun Industrial Development Co., Ltd. (16.10%), Shanghai Deyin Investment Holding Co., Ltd. (7.76%), and Shanghai Derun II Industrial Development Co., Ltd. (4.90%). Institutions such as Hong Kong Central Clearing Ltd. and Taiping Life Insurance also feature among the top ten shareholders.

03 How Is the Company Faring?

In 2025, STO Express achieved revenue of RMB 55.586 billion, up 17.84% year-on-year, with net profit attributable to shareholders reaching RMB 1.369 billion, a 31.61% increase. Its market share reached 13.14%.

STO Express's performance in the first quarter of 2026 was even more remarkable. Revenue hit RMB 15.686 billion, a 30.74% year-on-year increase, with net profit attributable to shareholders reaching RMB 459 million, up 94.29%. The company also projected that its net profit attributable to shareholders for the first half of 2026 would be between RMB 950 million and RMB 1.06 billion, more than doubling year-on-year. By all indications, STO Express is experiencing a phase of accelerated performance growth.

Financially, STO Express maintains a debt-to-asset ratio of around 62%, a moderate level within the express delivery industry.

On the surface, the termination appears to be an unforeseen "black swan" event, with the subsidiary's investigation derailing the financing plan. However, several aspects merit deeper consideration.

Firstly, compliance takes precedence over financing. In the current regulatory climate, no listed company dares to overlook compliance issues. Even if the subsidiary's investigation is not directly linked to the parent company, regulators would inevitably scrutinize it during the review process. Rather than passively responding to inquiries, proactively withdrawing to address issues is a wiser course of action. STO Express acknowledged in its announcement, "We deeply recognize the shortcomings in our unified management responsibilities," a statement that serves as both a commitment and a reflection of reality.

Secondly, the company is not in dire need of cash. Based on its performance, with RMB 1.369 billion in profit in 2025 and nearly doubled net profit in the first quarter of 2026, its operating cash flow is likely strong. Terminating the convertible bond issuance will not significantly impact its daily operations. In other words, this financing was not "essential for survival" but "for growth." Since the pace of growth can be adjusted, prioritizing compliance is of utmost importance.

Thirdly, what message does this convey? STO Express's proactive termination reflects a profound transformation underway in the express delivery industry, shifting from "scale-based competition" to "compliance and quality-driven competition." In recent years, the industry has been mired in intense "involution," characterized by cutthroat price wars. Now, with regulators emphasizing the crackdown on "involutionary" competition, companies are redirecting their focus toward compliant operations and refined management.

Source/MorseIPO