On the evening of November 16th, Alibaba Group released its financial report for the second quarter of the 2024 fiscal year ending on September 30th. In this report, Cainiao Group recorded a revenue of 22.823 billion yuan this quarter, marking a 25% year-on-year increase. According to the parcel volume delivered in 2022, Cainiao has become the world's leading cross-border e-commerce logistics company, with cross-border logistics serving as a strong driver of its growth. With further upgrades to cross-border express solutions, continuous operational optimization led by technology, and ongoing expansion of domestic quality logistics, Cainiao's service capabilities continue to improve. This quarter, Cainiao's adjusted EBITA reached 906 million yuan, further strengthening its profitability.

The financial report indicates that in the field of cross-border logistics, since September, Cainiao has officially launched the cross-border express service "Global 5-Day Delivery" in collaboration with AliExpress. This service has already covered several key cross-border e-commerce markets in Europe, becoming a flagship service in the global cross-border e-commerce logistics field. Cainiao is accelerating the construction of a leading global smart logistics network to enhance the end-to-end comprehensive capabilities of cross-border logistics solutions. By extensively applying logistics technology throughout the cross-border logistics chain, Cainiao provides cross-border merchants with logistics solutions that are both timely and cost-effective, bringing the cross-border e-commerce logistics experience closer to that of domestic logistics and helping merchants increase repeat purchases.

This quarter, Cainiao also upgraded logistics solutions in key markets such as North America, the Middle East, and Latin America in collaboration with AliExpress. For example, in North America, Cainiao has expanded its local distribution in the United States, reducing local delivery times in major cities such as Los Angeles and New York to 2 days. In the Middle East, the cross-border logistics efficiency of Cainiao has been accelerated from 30 days to 12-14 working days in countries such as the United Arab Emirates and Oman.

In Europe, as of the end of October, Cainiao's local self-operated express network in Spain has covered 90% of the area, achieving "next-day delivery" in 23 cities.

China's Hong Kong is also an important part of Cainiao's global smart logistics layout. Currently, the cumulative user base of Cainiao in Hong Kong has exceeded 2.6 million. In order to enhance the online shopping experience of Hong Kong users, Cainiao launched the "Next-Day Delivery, Compensation for Late Delivery" commitment in Hong Kong this quarter, whereby packages shipped from Cainiao's consolidated warehouses in mainland China can be delivered to Hong Kong's Cainiao pickup points or directly to users by the second day at the latest.

In mainland China, Cainiao continues to expand its quality logistics services. This quarter, through the combination of Cainiao Supply Chain and Cainiao Express, the "1212 Half-Day Delivery" jointly launched with Tmall Supermarket has expanded to 20 cities nationwide, with continuous improvement in consumer satisfaction. In terms of industry solutions, Cainiao continues to strengthen its deep cooperation with leading global fast-moving consumer goods brands and has set a new benchmark in the industry for large-item logistics: from January to September this year, Cainiao's satisfaction with large-item courier services has led the industry by more than 20 percentage points.

Technology is a critical capability for Cainiao to improve logistics efficiency and optimize service experience. In order to support the expansion of Global AliExpress's Choice business, Cainiao provides cross-border parcel consolidation and direct shipping capabilities through data analysis and algorithms, reducing delivery times and improving efficiency.

Currently, Cainiao has achieved end-to-end traceability for cross-border logistics from China to 179 countries and regions. Leveraging big data, real-time forecasting, and online decision optimization algorithms, Cainiao's "Cross-border Parcel Consolidation and Fulfillment System" can determine the optimal combination of multiple orders for a consumer and upgrade logistics services within 10 milliseconds. This helps cross-border merchants improve logistics efficiency without increasing logistics costs, making it easier for consumers to "buy more and receive faster". Currently, this technology covers 53 countries and regions globally.

In China, Cainiao's digitalized solution for courier stations was also upgraded this quarter. The industry's first "shelf map" function for parcel navigation was launched, increasing pickup efficiency by over 20%. Combined with the Cainiao app and digital devices, consumers can complete the entire process of scanning to open the door and self-pickup in just 1 minute.

While enhancing logistics service capabilities, Cainiao is also actively advancing ESG practices and leveraging its digital advantage to support carbon reduction in logistics. This year marks the seventh consecutive year that Cainiao has conducted green recycling of express packaging. After providing green solutions for over 40 corporate brands, Cainiao has collaborated with nearly one hundred universities nationwide to launch the "Campus Carbon Asset Management System". Recently, the Forbes China ESG Innovation Enterprise List for 2023 was released, and Cainiao was the only logistics company selected.

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Cross-border e-commerce logistics Bai xiaosheng