This report analyzes the impact of rising labor costs on China's logistics industry, which relies heavily on low-cost labor. The industry is facing pressure to absorb or reduce these costs as common prosperity aims to improve the livelihoods of vulnerable workers, such as delivery couriers. The report estimates that labor accounts for up to 95% of costs for some companies. The report also provides sensitivity analysis around increased social security expenses and compliance payments, which could lower earnings by 15-35% in the short term. The report recommends focusing on new drivers for the on-demand delivery sector, such as SF Intra-city, and maintaining Buys on YTO Express and Yunda Future Transport.