On September 26, Alibaba announced that it intends to spin off Cainiao Smart Logistics Network Co., Ltd. (hereinafter referred to as "Cainiao") to be listed on the main board of the Hong Kong Stock Exchange.。That night, the Hong Kong Stock Exchange website also showed that Cainiao had formally submitted a listing application to the Hong Kong Stock Exchange.。

It was previously revealed that Cainiao plans to launch an IPO in Hong Kong in early 2024 and plans to raise $1 billion to $2 billion.。The submission of the listing application to the HKEx represents an important step in the IPO process for rookie.。In addition, Cainiao has become Alibaba's first business group to officially enter the IPO process after "1 + 6 + N."。

Only half a year, rookie fired the first shot listed

In March this year, Zhang Yong, then chairman and CEO of Alibaba Group, issued a letter to all employees, "Only self-change can create the future."。The letter mentioned that Ali Group will build a "1 + 6 + N" organizational structure.。According to the plan, under Alibaba Group, six major business groups, including Alibaba Cloud Intelligence, Taobao Tmall Business, International Digital Business, Local Life, Cainiao, and Big Entertainment, and "N" business companies (such as Ali Health and Box Horse) will be established, and other companies will also conduct independent operation and management accordingly.。

The letter also said that the market is the best litmus test, in the future, qualified business groups and companies, will have the possibility of independent financing and listing.。Zhang Yong hopes: "Alibaba will be able to grow a number of listed companies in the future, a number of listed companies will be able to have children again after a few years, and a few more listed companies will come out."。In this way, Alibaba's business is really heading for prosperity.。

Under Alibaba's strategy, Cainiao's road to listing is imminent。

According to Alibaba's financial report, from FY2021 to FY2023, Cainiao's total revenue was 52.7 billion yuan (RMB, the same below), 66.8 billion yuan and 77.5 billion yuan, respectively.。Among other things, Cainiao achieved approximately 21% year-over-year revenue growth in fiscal 2023。In the fourth quarter of fiscal 2023 (i.e., January-March this year), Cainiao's external revenue reached $18.9 billion, up 18% year-on-year.。

From the earnings data, rookie's revenue has grown rapidly in recent years。However, the company is still not out of the red - in FY2023, Rookie's adjusted EBITA was a loss of 3.9.1 billion yuan, operating cash flow is facing tight, the urgent need for external financing to supplement。Under such circumstances, in mid-May, Alibaba officially announced Cainiao's listing plan, which is expected to be completed in the next 12 to 18 months.。

Ali said at the time that, as it holds about 67% of Cainiao's equity, it will choose to split the listing model in the future and complete the offering on the Hong Kong Stock Exchange - this is exactly the same as this Ali announcement, in which Ali again disclosed that it holds Cainiao 69.54% of the shares。The announcement also said that after the completion of the proposed spin-off, Alibaba will continue to hold more than 50% of Cainiao's shares, and Cainiao will remain its subsidiary.。

From the official spin-off of Ali in March to the official submission of the prospectus by Rookie in September, only half a year passed in the middle, which shows the speed of Rookie's actions.。

Rookie Prospectus: Growing from a Technology Platform to a Global Smart Logistics Network

According to Cainiao's prospectus, the company's revenue sources mainly come from international logistics services, including cross-border express delivery, international supply chain and a small number of overseas local logistics services; and domestic logistics services, including supply chain and quality express delivery services.。At the same time, Cainiao also generates revenue from logistics technology and other services.。

In terms of international logistics, Cainiao delivered more than 1.5 billion cross-border e-commerce packages in fiscal year 2023, serving more than 100,000 merchants and brands engaged in cross-border trade, ranking first in China's export e-commerce logistics and import e-commerce logistics.。Cainiao's disruptive solution reduces the length of time it takes to travel between China and major global countries from 30 to 60 days to 10 days or less。

In China, Cainiao is a leading e-commerce logistics service provider, and more than half of the world's top 50 FMCG brands have long-term cooperation with Cainiao.。At the same time, Cainiao is also China's largest reverse logistics service provider, as well as operating the world's largest network of Cainiao stations, handling more than 80 million parcels a day.。

The prospectus shows that Cainiao has gone from being an initial technology platform to a global smart logistics network, directly building and operating a number of key facilities in strategic locations, including two integrated e-commerce logistics hubs (e-Hub), more than 1,100 warehouses with a total area of approximately 16.5 million square meters, and more than 380 logistics distribution centers and 170,000 post stations worldwide.。The warehouse area directly used for cross-border logistics is about 3 million square meters, ranking first in the world.。

Alibaba is Cainiao's largest customer, with revenue from Alibaba Group accounting for 29% of Cainiao's total revenue in each of the fiscal years 2021-2023 and the latest quarter ended June 30..2%, 30.8%, 28.2% and 29.7%。