Date
25 September 2017
Wuzhou International chairman expects the company's client base to reach 100,000 by the end of the year. Photo: HKEJ
Wuzhou International chairman expects the company's client base to reach 100,000 by the end of the year. Photo: HKEJ

Wuzhou in talks with Alibaba on logistics cooperation

Wuzhou International Holdings Ltd. (01369.HK), an operator of trade centers and logistics platforms in China, is in talks with Alibaba Group for possible cooperation after securing financing from Ping An Real Estate and fund manager PAG.

The company, based in Wuxi, Jiangsu province, saw its shares jump 17.58 percent to close at HK$1.94 on Monday after selling convertible bonds worth US$100 million to Ping An Real Estate Hong Kong and PAG VIII.

“We are having discussions with Alibaba to seek potential cooperation, and we expect to seal a deal in the next six months,” founder and chairman Shu Cecheng told EJ Insight in an interview.

“If we can cooperate with Alibaba, clients from both sides can share a common platform,” Shu said.

He noted that Alibaba’s logistics unit Cainiao only covers a few big cities. “We can help them in Jiangsu province as well as in central and western China,” he said.

In early September, Wuzhou launched a mobile application for its clients, who are mostly wholesalers of different business segments.

“About 1,300 of our clients are now using the platform, and we expect this to grow to 4,200 clients by year-end, and reach more than 10,000 by the first half of next year,” Shu said.

Wuzhou has invested hundreds of millions of yuan in developing the application, and it expects the application to break even in one year.

The company now has 77,000 clients, up from 36,000 at the end of last year. It expects the number to grow to 100,000 by the end of this year.

– Contact us at [email protected]

AM/JP/CG

EJI Weekly Newsletter

Please click here to unsubscribe