China’s e-commerce giant Alibaba (NYSE: BABA) has become a shareholder in courier firm Yunda Holding Co. (SHE: 002120) with a 2% stake, according to Yunda’s annual report released on Wednesday.
An Alibaba investment vehicle bought 44.5 million shares of Yunda at an undisclosed price to gain the 2% stake, which is worth about RMB 1.3 billion (USD 187 million), as Yunda’s shares closed at RMB 29.3 on Wednesday.
The courier firm booked RMB 33.4 billion in revenue in 2019, up 148.3% year-on-year, according to its financial report. However, the company’s net profit was down 1.9 % year-on-year at RMB 2.6 billion.
Alibaba is already an investor in other major couriers in China, including STO Express (SHE:002468), YTO Express (SHA:600233), ZTO Express (NYSE: ZTO), and Best (NYSE: BEST).
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.