Alibaba has invested 4.66 billion yuan in Shentong Express, aiming to strengthen its logistics network and improve operational efficiencies within the express delivery market in China.

Information on the Target

Shentong Express Co., Ltd. (申通快递) is a prominent express delivery company in China, established in 1993. It is one of the earliest players in the industry and is part of the "three links and one reach" (三通一达) network that also includes YTO Express (圆通快递), Zhongtong Express (中通快递), and Yunda Express (韵达快递). Despite its leading status historically, Shentong has faced challenges in recent years, including declining market performance and profitability.

As of the end of 2018, Shentong reported a total revenue of 170.14 billion yuan, marking a year-on-year increase of 34.42%. However, its net profit was reported at only 20.45 billion yuan, indicating that the company struggles to maintain competitiveness in an evolving market. The company's management has been focused on enhancing operational efficiency through investments in transit centers and improving service delivery standards.

Industry Overview in China

China's express delivery industry has been experiencing rapid growth, driven largely by the expansion of e-commerce. The country’s logistics and express services are vital for the economy as they support the increasing de