Good logistics are essential for e-commerce. YTO's primacy looks assured following the Hangzhou behemoth's commitment.
On September 1, YTO Express announced that the controlling shareholder had transferred 12% of its equity to Alibaba at a transfer price of CNY 17.406 per share, involving CNY 6.60 billion. The two parties will jointly promote the collaboration and complementary advantages of logistics, air freight, international networks and supply chains and information technology. YTO International shares skyrocket by more than 200% in HKEX, reaching HKD 6.87.
Since 2005, YTO Express has taken the lead in accessing Alibaba's Taobao platform. In 2015, Alibaba Group strategically invested in YTO Express and became the company's second-largest shareholder. In daily business, YTO and Cainiao have carried out a full range of cooperation in delivery, warehousing and distribution, terminal construction, and intelligent IoT device R&D and application.
In the low-end delivery market, although YTO's business scale, cost control and profitability are slightly inferior to Yunda Express, the company's operations have improved significantly in the past two years. The financial report shows that in the second quarter of 2020, YTO Express's order increased by 52.49% year-on-year, and profit increased by 40.63%. Through the increase of Alibaba's holdings to obtain more empowerment, the company's development momentum is improving.