Cainiao Smart Logistics Network Co., LTD. (hereinafter referred to as "Cainiao"), a logistics subsidiary of Alibaba Group, recently formally submitted an application for listing on the Hong Kong Stock Exchange. The prospectus disclosed that the company intends to raise funds through the listing for further development of international and domestic logistics service capabilities and networks, research and development and technological innovation, as well as for working capital and other general corporate purposes.
On the night of Cainiao's "submission" on September 26, Alibaba Group also announced in the Hong Kong Stock Exchange that it intends to spin off Cainiao through the independent listing of Cainiao shares on the Main Board of the Hong Kong Stock Exchange, and the company has submitted the spin-off plan to the Hong Kong Stock Exchange on the proposed spin-off, and the Hong Kong Stock Exchange has confirmed that the Company can carry out the proposed spin-off. Upon completion of the proposed spin-off, Alibaba will continue to own more than 50 percent of Cainiao, which will remain a subsidiary.
Alibaba Group said in the statement that the board believes that the spin-off will benefit the company and Cainiao, and that the spin-off listing will help it improve operational efficiency, direct and independent access to equity and debt capital markets when necessary in the future, and further enhance its ability to obtain bank credit financing. As of the announcement date, Alibaba held about 69.54% of Cainiao's shares. Express logistics expert Zhao Xiaomin said that Cainiao is accelerating the transfer of heavy assets and accelerating the expansion of upstream and downstream, and is expected to become a comprehensive logistics service provider. Alibaba will continue to hold more than 50% of Cainiao's shares, and will show more imagination from the perspective of capital markets.
According to the prospectus, Cainiao's total revenue from fiscal year 2021 to fiscal year 2023 (as of March 31, the same below) was 52.733 billion yuan, 66.867 billion yuan and 77.8 billion yuan, respectively. In the first quarter of the fiscal year 2024, as of June 30 this year, the company achieved a total revenue of 23.164 billion yuan, an increase of 33.62%.
In terms of annual profit, from fiscal year 2021 to fiscal year 2023, the loss amount of Cainiao was 2.015 billion yuan, 2.286 billion yuan and 2.801 billion yuan respectively. In the first quarter of the fiscal year 2024, it turned a loss into a profit, achieving an annual profit of 288 million yuan. In addition, from fiscal year 2021 to fiscal year 2023, the company's gross profit was 5.544 billion yuan, 7.181 billion yuan and 8.147 billion yuan, and the gross profit margin was 10.5%, 10.7% and 10.5%, respectively. For the first quarter of fiscal 2024, gross profit was RMB3.185 billion, and gross profit margin reached 13.7%.
At the business level, Cainiao's current main businesses include international logistics, domestic logistics and technology and other services. Among them, as of the end of the first quarter of 2023, the company's international logistics revenue reached 36.851 billion yuan, accounting for 47.4% of the total revenue, higher than the domestic logistics business revenue of 35.961 billion yuan.
In the rapidly changing logistics industry pattern, leveraging the capital market to continuously consolidate and seize advantages has become an important measure for many logistics enterprises. With the promotion of Cainiao listing, the competition of various enterprises will be further intensified. Up to now, a number of logistics enterprises such as Jingdong Logistics, ZTO Express, Anneng Logistics, SF Express and Kerry Logistics have been listed in Hong Kong stocks. The IPO process of Polar Rabbit Express is also moving fast, and the company plans to raise between $500 million and $1 billion. On September 15, the CSRC issued a notice on the filing of its overseas offering listing, and the company intends to issue no more than 376 million ordinary shares. This also means that Polar Rabbit Express has obtained the pre-requirements for the listing hearing in Hong Kong, and the listing hearing will be conducted soon. In addition, SF Holdings also submitted a prospectus to the Hong Kong Stock Exchange in August, and the CSRC has recently issued supplementary material requirements for the record of SF Holdings' overseas issuance and listing. If successful, SF Holding will become the first "A+H" shares listed in the express delivery industry at the same time.