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STO Express and Alibaba signed “Share Option Extension Agreement”, and will continue to deepen the cooperative relationship

STO Express and Alibaba signed “Share Option Extension Agreement”, and will continue to deepen the cooperative relationship

According to Securities Times, STO Express (002468) announced on the evening of December 27 that the company’s controlling shareholder and actual controller signed the “Share Option Extension Agreement” with Alibaba Network.

According to the agreement, Alibaba Network or its designated third party has the right to purchase part of the controlling shareholder equity of STO Express or part of the STO Express shares held by it from the effective date of the agreement to December 27, 2025.

This marks the continuation of the strategic cooperation between STO Express and Alibaba to jointly bring better service experience to merchants and consumers.

According to the data, in 2019, STO Express and Alibaba signed a cooperation agreement, officially opening the in-depth cooperation between the two parties.
STO Express said that over the past three years, Ali has continuously empowered the company’s development in terms of production technology and capacity upgrades, management and organizational optimization, service and business innovation, and helped the company’s digital and intelligent transformation. Next, the two parties will maintain in-depth collaboration around key areas such as digital and intelligent iteration of express delivery, supply chain business, terminal network, and quality and efficiency optimization, deepen cooperation levels, and accelerate the company’s efforts to create “economical express delivery with leading quality and efficiency in China”.

In the past three years, despite the changing external environment, STO Express has diligently improved its internal strength and drawn a development curve that bucks the trend and accelerates to rebound. In 2021 and 2022, it has implemented, respectively, 47 and 82 production capacity projects, hitting new highs. It is estimated that the normal throughput capacity will exceed 50 million pieces per day by the end of 2022.

It is worth mentioning that since the beginning of this year, STO Express has led the industry in business volume growth, 48 days earlier than last year, and its market share increased to 13% in August 2022, the highest in a single month since its listing in 2016.
At the same time, the company’s operations have turned losses into profits. In the first half of the year, the number of orders from important brand customers has increased by more than 5 times compared with the previous one, showing that the business has won the favor of more quality merchants.