Shentong Express Restarts 3 Billion Yuan Financing After Failed 3.5 Billion Yuan Placement: Highest Debt Ratio and Weakest Profitability Among "Tong Da" Peers, Plans 280 Million Yuan Continued "Blood Transfusion" to Related Parties

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Produced by: Sina Finance Listed Company Research Institute

Author: Hao

Recently, STO Express announced that the company plans to issue convertible bonds to raise 3 billion yuan for smart logistics equipment upgrades and trunk line capacity enhancement projects.

In fact, among the “Tongda Group” companies, STO Express has always faced the greatest debt pressure, with a debt ratio far exceeding its peers. In 2021, STO Express planned a private placement of 3.5 billion yuan to fund hub, automation, capacity construction, and liquidity replenishment, but it was ultimately halted due to performance setbacks, market share decline, and other issues—leading to doubts that it was a forced capital injection rather than expansion. Whether this 3 billion yuan financing plan will follow the same path remains to be seen.

In recent years, STO Express’s revenue, volume, and per-transaction income have all increased. However, due to low operational efficiency and high costs, its profitability has long been the lowest among the Tongda companies, further intensifying its debt pressure.

Notably, STO Express also plans to acquire two related companies under Cainiao Logistics for a total of 280 million yuan in cash. Facing significant challenges in performance, funds, and debt, STO Express still appears to be “transfusing” resources from related parties.

Highest Debt Ratio in the “Tongda Group” — 3.5 Billion Yuan Private Placement Faced Doubts and Was Abandoned

On March 17, STO Express announced its plan to issue convertible bonds, raising no more than 3 billion yuan for smart logistics equipment upgrades and capacity network improvements.

In recent years, STO Express has been troubled by debt issues, with its debt ratio rising year after year. Since 2021, it has surpassed the other three listed courier companies in the Tongda Group, with the gap widening annually, maintaining a high level above 60%. The company urgently needs to raise funds to ease its debt burden.

Actually, STO Express has attempted external financing before.

In July 2021, it announced plans to issue 338 million shares to raise 3.501 billion yuan through a private placement, aimed at building multifunctional network hub centers, upgrading automated transfer centers, improving land transportation capacity, and replenishing working capital.

However, during 2020-2021, STO Express suffered consecutive losses and was the only company in the Tongda Group to do so. In 2021, its total volume was 11.08 billion parcels, only 45% of Zhongtong’s 24.4 billion and 61% of YTO’s 18.2 billion, with market share continuing to decline.

Due to losses and declining market share, the market questioned whether the 2021 private placement was a “forced blood transfusion” rather than genuine expansion. Ultimately, this private placement was abandoned in August 2022.

Now, with another 3 billion yuan financing plan, whether it will repeat the failure of the previous private placement remains to be seen.

Long-term Bottom in Profitability among “Tongda Group” — 280 Million Yuan Cash “Transfusion” to Related Parties

In the past two years, STO Express’s core business has shown some recovery.

In January-February 2026, its service revenue increased by 29.41% year-over-year, parcel volume grew by 11.23%, and per-transaction revenue rose by 16.59%, continuing the upward trend from 2025.

However, due to low operational efficiency and high costs, STO Express’s profitability remains the lowest among the Tongda companies, further increasing its debt pressure.

Despite facing performance, funding, and debt challenges, STO Express still appears to be “transfusing” resources from related parties.

On the same day it disclosed the convertible bond issuance, STO Express announced plans to acquire 100% equity of Jieyang Chuangyun IoT Technology Co., Ltd. (Jieyang Chuangyun) and Chengdu Chuan Shen IoT Technology Co., Ltd. (Chengdu Chuan Shen), both held by related party Zhejiang Cainiao Supply Chain Management Co., Ltd. (Cainiao Logistics), for a total of 280 million yuan in cash.

The announcement states that the core assets of Jieyang Chuangyun and Chengdu Chuan Shen are their respective warehousing and logistics parks. STO Express noted that Jieyang is one of the important grain-producing areas for express delivery, and Jianyang is a key node in Southwest China’s logistics network. Improving regional transfer network layout is strategically significant for expanding local market share. Both Jieyang Chuangyun and Chengdu Chuan Shen operate highly customized warehousing logistics centers on approximately 150 and 130 acres respectively, with certain regional resource advantages.

However, as of the end of October 2025, Jieyang Chuangyun’s debt ratio reached 86%, and Chengdu Chuan Shen’s debt ratio also exceeded 80%. Both companies only started generating revenue and profit in 2025, so future performance remains highly uncertain.

While seeking funds from the market, STO Express is also acquiring high-debt logistics parks from related parties. Its series of actions warrant close market attention.