Rookie Group launches IPO plan; Huamao Logistics intends to establish a new joint venture company
IPO plan launched by Rookie Group; Huamao Logistics to establish new joint venture
1. Cainiao Group initiates IPO plan
On May 22nd, Alibaba’s board of directors approved the launch of the Cainiao Group’s IPO plan, which is expected to be completed within the next 12 to 18 months. Cainiao is a world-leading smart logistics company that has formed five core business segments: domestic logistics, international logistics, urban and rural last mile, logistics technology, and logistics real estate. In terms of international logistics, Cainiao handles over 4.5 million cross-border parcels per day and is one of the four largest cross-border logistics networks in the world.
Source: Logistics Times Weekly
2. Cainiao’s Q1 2023 revenue increases 15% YoY to RMB 18.915 billion
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On May 22nd, Alibaba’s financial report showed that, in the quarter ending March 31st, 2023, before offsetting the impact of inter-segment transactions, Cainiao’s revenue increased 15% YoY to RMB 18.915 billion (USD 2.754 billion). In the quarter ending March 31st, 2023, 72% of Cainiao’s total revenue came from external customers. After offsetting the impact of inter-segment transactions, Cainiao’s revenue increased 18% YoY to RMB 13.619 billion (USD 1.983 billion), mainly due to an increase in the average revenue per order of international logistics performance solutions services and an increase in demand for consumer logistics services.
Source: Cailian Press
3. Huamao Logistics plans to establish a joint venture company and launch bulk commodity supply chain logistics services
On May 22nd, Huamao Logistics issued an announcement stating that the company plans to establish a joint venture company with Xiamen Jianfa Supply Chain Logistics Technology Co., Ltd., a subsidiary of Xiamen Jianfa Stock Co., Ltd. The registered capital of the joint venture company is RMB 50 million, of which Huamao Logistics will contribute RMB 25.5 million, holding 51% of the shares, and Jianfa Supply Chain Logistics will contribute RMB 24.5 million, holding 49% of the shares. Both parties will contribute in cash.
A joint venture mainly engaged in supply chain logistics services for bulk commodities and consumer goods, including professional one-stop international logistics services for bulk commodities and consumer goods import and export such as railway import and export, sea import and export, warehousing and land transportation.
In addition, the announcement also announced the approval of the proposal to establish subsidiaries in South Korea and South Africa.
Source: Huamao Logistics
4. FedEx and ShopXinmi reached a strategic cooperation
On May 22nd, FedEx reached a strategic cooperation with ShopXinmi, aiming to provide a more complete, efficient, and easy-to-use one-stop e-commerce solution for small and medium-sized cross-border e-commerce sellers and brands going global. It is understood that the strategic cooperation between the two parties is to make FedEx’s global logistics transportation services and resource information compatible with the ShopXinmi service platform through the FedEx e-commerce compatibility program, and merchants can directly manage orders and arrange logistics services in batches on the ShopXinmi main page without switching multiple platforms.
Source: FedEx China
5. Southern Airlines Logistics opens Guangzhou = New York all-cargo aircraft route
On May 22nd, a China Southern Airlines B777 all-cargo plane carrying more than 90 tons of e-commerce goods arrived smoothly in New York from Guangzhou Baiyun International Airport, marking the official opening of the Southern Airlines Logistics Co., Ltd. Guangzhou-New York all-cargo aircraft route.
It is reported that the route operates three flights per week, accelerating “buying and selling globally”.
Source: Air Cargo News Express
6. The Jinan-New York all-cargo aircraft route officially opened
On May 22nd, a B747-400F plane landed smoothly at Jinan Airport of Shandong Airport Management Group, and the Atlas Air’s Jinan-New York all-cargo aircraft route officially operated. The route will initially operate two flights per week on Mondays and Thursdays. The import and export goods are mainly instruments, automobile parts, fabrics and textiles, and cross-border e-commerce. The cargo volume of each import and export flight is about 150 tons, and it is planned to be increased to three flights per week in the fourth quarter of this year. Atlas Air also became the seventh airline to operate international all-cargo flights at Jinan Airport, promoting the further expansion of Jinan Airport’s international freight market.
Source: Dazhong News
7. Maersk suspends Trans-Pacific routes again
On May 22nd, Maersk announced that, in order to better cope with demand fluctuations, it will cancel the TBN/322N voyage on the TP2 route. The cargo will be received by TP6 Maersk Ensenada 322N instead.
At the same time, Maersk will cancel the Maersk/321N voyage on the TPX route. Cargo bound for Los Angeles will be transferred to TP2 MSC Melatilde 321N, and cargo bound for Seattle will be received on the subsequent TPX voyage Maersk Chachai 322N.
Previously, the 2M Alliance announced the cancellation of multiple TP6 and TP2 voyages. Due to the consecutive cancellations of voyages, flight cancellations on certain routes have led to service suspensions. For example, one of the 2M Alliance’s six Asia-Europe routes, the AE1/Shogun loop, was permanently suspended. It seems that Maersk is still continuously canceling voyages, striving to achieve supply and demand matching.
Source: Shipping Online
8. SHEIN may return to the Indian market
On May 22, Chinese cross-border e-commerce company SHEIN is expected to return to the Indian market this month and cooperate with one of India’s largest retail companies to seize the opportunities of India’s growing consumer market.
The Indian government has approved the cooperation between SHEIN and Reliance Retail, a retail subsidiary of Indian conglomerate Reliance Industries. Through this partnership, SHEIN can reach India’s huge and fashion-conscious young population, while Reliance Industries can benefit from SHEIN’s brand awareness, technology, and supply chain. In addition, SHEIN plans to establish a production center in India specializing in exporting to the Middle East.
Source: Seller’s Home
9. The EU’s tariff system will undergo comprehensive reform
On May 22nd, the European Commission officially released the proposal “EU Tariff Reform: A Vision for a More Simple, Intelligent, and Secure Tariff Alliance Driven by Data”, marking the most comprehensive reform of the EU tariff alliance since its establishment in 1968.
As the focus of the reform, the EU will establish a new tariff authority responsible for supervising the EU Customs Data Center, which will go online before 2028, replacing the existing customs IT infrastructure of each member country and helping to improve the EU’s risk management and inspection methods.
The EU also plans to remove the policy of duty-free import of goods below 150 euros. Currently, about 65% of orders in packages entering the EU intentionally undervalue the value and benefit from this policy. The EU expects that this brand new system tailored for e-commerce will bring an additional 1 billion euros in revenue to customs each year.
Source: Zhejiang Provincial Committee of the International Trade Promotion Commission
WeChat Official Account: Cross-border E-commerce Logistics Encyclopedia
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