Alibaba Q1 financial report: Cainiao grew steadily by 50%, and industrial supply chain upgrades helped improve the quality and efficiency of the real economy

On August 3, Alibaba Group released its first quarter results for fiscal year 2022. This quarter, Cainiao continued to accelerate innovative services in serving the real economy and achieved steady growth. Excluding revenue from related-party transactions with Alibaba Group, Cainiao's external revenue this quarter was 11.601 billion yuan, a year-on-year increase of 50%. After long-term efforts, the industrial supply chain, global logistics, community services and other fields that Cainiao has adhered to have achieved rapid development in the incremental market.

In June this year , Cainiao pointed out that its development goal is to become a global industrial Internet company driven by customer value. In terms of supply chain services, Cainiao was the first in the industry to propose " extending from consumer supply chain to industrial supply chain, and creating a service model that gives equal weight to consumer supply chain and industrial supply chain ", thereby more directly helping the manufacturing industry and the real economy to reduce costs and increase efficiency.

As of June 2021, Cainiao's industrial supply chain has entered more than 30 manufacturing industrial belts and agricultural product origins across the country. By opening origin warehouses near fields and factory workshops, producers and consumers are seamlessly connected, which greatly shortens the sales and circulation links of industrial and agricultural products and improves production efficiency. Through the digitization and global optimization of the end-to-end supply chain, Cainiao's origin warehouse efficiency is expected to increase by another 30% within the year.

In terms of community services, Cainiao launched a number of innovative measures this quarter. Cainiao Kuaigou improved the certainty of "1-hour door-to-door service", and the service order volume increased by 63% year-on-year. Cainiao Post Station upgraded the "free storage, on-demand door-to-door service" in communities and campuses, and promoted it nationwide, combining community retail, recycling, laundry and other services to promote the formation of a 15-minute community living circle.

This quarter, Cainiao Post and DAMO Academy invested heavily in unmanned delivery. As of June 2021, 60 universities across the country have opened Cainiao unmanned vehicle services. Unmanned delivery has reached the world's leading level in terms of technical capabilities, service quality and application scale, and consumers can choose independently and receive accurate delivery.

In the central and western regions and rural areas, the "rural version" of Cainiao Express Stations that have penetrated into villages and towns have pioneered county-level joint delivery and accelerated the delivery of express to villages. As of the end of this quarter , Cainiao's rural joint delivery has served 1,000 counties across the country, and more than 30,000 rural terminal express joint delivery stations will increase digital upgrades and gradually achieve the same service efficiency as cities.

In terms of global logistics, the current problem of unbalanced international shipping capacity and rising freight rates still exists. The high-certainty and cost-effective services provided by Cainiao, such as "5 US dollars for 10 days" and "2 US dollars for 20 days" , cover more countries and regions, effectively helping small and medium-sized businesses to operate their foreign trade healthily. In May this year, Cainiao launched the East China Preferred Warehouse to help foreign trade companies manage export goods, which can help companies save more than 20% in warehouse rent and labor costs, greatly reducing the operating pressure of small and medium-sized foreign trade companies.

As a company with global logistics service capabilities, Cainiao continued to deliver COVID-19 vaccines to all parts of the world through professional cross-border medical cold chain logistics in this fiscal quarter. This cross-border logistics capability is also used in the construction of Hainan Free Trade Port. This quarter, Cainiao and Hainan reached a strategic cooperation to jointly build a digital supply chain demonstration zone, and will gradually cooperate in Hainan duty-free logistics, global processing centers, and the construction of a freight network for Southeast Asia around Hainan Airport.

"As an industrial Internet company in the logistics field, Cainiao must not only innovate solutions to solve current problems for customers, but also invest in the future to solve sustainable and healthy development problems for customers . " Cainiao people said that around carbon peak and carbon neutrality, Cainiao has cooperated with more merchants this quarter to expand green supply chain services. These include large multinational companies such as Nestlé. The two parties will establish complete green services in production workshops, logistics transit, terminal recycling and other links.

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