It Is Said That Baishi Group Is Seeking To Split Its Express Delivery And Freight Business To Be Listed In Hong Kong

Recently, a source said that Baishi group, supported by Alibaba, is seeking to list its express and freight business in Hong Kong, and the issuance scale and valuation target have not been determined. In response, Baishi said it would not comment.

It is worth mentioning that Zhou Shaoning, founder of Baishi group, first publicly mentioned and responded to the idea of "business separation" in the financial report conference call after the first quarter report was released in May this year. "The company is currently affected by public health events and is actively assessing the progress of divestiture and business review," he said. This situation may be more clearly disclosed in the next few quarters. "

From the data of the first quarter, affected by the epidemic situation and the impact of the price war in express delivery and express delivery markets, Baishi's main business boards are losing money. The first quarter revenue of Baishi logistics was 5.465 billion yuan, a decrease of 20.5% compared with the same period of last year; the net loss was 750.8 million yuan, which was larger than 233.4 million yuan in the same period of last year; the net loss was 7121.2 million yuan, compared with 208.4 million yuan in the same period of last year.

In addition, Alibaba's investment in Baishi group is increasing. On May 28, Baishi group announced that it had signed a final agreement to issue and sell US $150 million convertible preferred notes due in 2025 to alibaba.com Hong Kong Limited, one of the company's major shareholders. Alibaba is expected to complete the transaction around June 4.

Alibaba's stake in the group rose to 37.2% as of June 3, 2020, up 6.9% from the previous 30.3%, according to the company's filing with the securities and Exchange Commission.