Cainiao Group has become Alibaba's fastest-growing business, accounting for 6% of revenue

News on May 18, Alibaba Group released its Q4 and full-year financial reports for fiscal year 2023, and also announced a series of major initiatives, highlighting the company’s organizational changes and strategic adjustments. According to the editor's understanding, this adjustment is considered by the outside world to be Alibaba's most important organizational change in 24 years. It marks the end of the "big pot" era and each business segment will develop independently in the future.

Alibaba’s total revenue was 868.687 billion yuan, an increase of 2% over the same period last year, and its net profit was 65.573 billion yuan, an increase of 39% year-on-year. These data were announced in its financial report. The substantial increase in net profit means that Alibaba's profitability has been significantly improved, with a net profit margin of 7.55%, an increase of 2.03 percentage points from the previous fiscal year.

Among them, Cainiao Group has become the fastest growing business within Alibaba Group, with revenue of 55.681 billion yuan, a year-on-year increase of 21%, accounting for 6% of the group’s total revenue. . Cainiao achieved revenue of 13.619 billion yuan in the fourth quarter of fiscal year 2023, a year-on-year increase of 18%. This is mainly due to the increase in the average revenue per order of international logistics fulfillment solution services and rising consumer demand for logistics services.

According to the "2023 Global Unicorn List" released by Hurun Research Institute, Cainiao Network's valuation of 185 billion yuan exceeded Jitu's 105 billion yuan and Lalamove's 90 billion yuan, becoming the largest logistics company in the world. One of the most notable companies in the industry.

#The rise of Cainiao Network is due to its unique business model and development opportunities. Since its establishment, Cainiao has used the establishment of data networks and warehousing and transshipment centers to improve logistics efficiency. Relying on Alibaba's e-commerce network, Cainiao has optimized its logistics channels by improving its data processing capabilities, and realized warehousing and logistics based on regional consumption characteristics, thereby speeding up distribution. Cainiao cooperates with offline physical stores and converts them into front-end warehouses, realizing a logistics model of online ordering and offline pickup. In addition, Cainiao is also actively integrating express delivery companies to understand the transactions, inventory and financial information of upstream merchants.

The profitability of Cainiao also continues to improve. In fiscal year 2021, Cainiao successfully achieved positive operating cash flow, and its external income reached 37.258 billion yuan, a year-on-year increase of 68%. While announcing plans to go public is a natural stage, there are still challenges following a successful IPO. Wan Lin, CEO of Cainiao Group, said that listing is only a phased achievement and that they will need to assume greater responsibility and responsibility in the future.

To sum up, the 2023 fiscal year financial report released by Alibaba Group shows its solid financial performance, especially the rapid growth of Cainiao Group in the logistics industry. Alibaba's organizational changes and strategic adjustments demonstrate the company's determination and execution capabilities. In the future, each business segment will develop independently, ending the past "big pot" era. As Alibaba's logistics support, Cainiao has achieved significant performance and market position through its unique business model and integration capabilities, and will face greater challenges and responsibilities in the future.

The above is the detailed content of Cainiao Group has become Alibaba's fastest-growing business, accounting for 6% of revenue. For more information, please follow other related articles on the PHP Chinese website!