Monday, 2024 March 4

CHINA BRIEF | Alibaba-backed logistics firm Best widens net loss, expands in Southeast Asia

Hangzhou-based logistics service provider Best booked RMB 5.5 billion (USD 771.9 million) in revenue in the first quarter of this year, down by 20.5% year-on-year (YoY), primarily due to business disruptions from the COVID-19 pandemic and the company’s downward price adjustments, according to a Wednesday press release.

The company, which has Alibaba among its investors, generated RMB 750.8 million (USD 106 million) in net losses, compared to RMB 233.4 million (USD 34.8 million) in net loss in the same period of 2019.

Best Express, the company’s express delivery arm, shipped 1.9% fewer parcels YoY in the first quarter, compared to 3.2% increase industry-wide, said the company, citing data from the State Post Bureau of China as a comparison. However, the company has gained growth momentum in the Southeast Asia as Best Global, the company’s global unit, shipped 8.8 million parcels in the region, up from 237,000 parcels one year earlier, representing a 3,624.3% YoY increase.

Best Freight , the company’s freight arm, shipped 15.3% less cargo YoY.

Best said in early April that the company will create over 40,000 jobs in China, including 5,000 in Southeast Asia in 2020 to meet demand after the sector’s recovery from the coronavirus outbreak, KrASIA reported earlier.

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.

Jingli Song
Jingli Song
I believe Chinese innovation at various level needs to be known by the world.
MORE FROM AUTHOR

Related Read