BEST Inc. Launches China-Malaysia Cross-Border E-Commerce Logistics Service in Partnership with Cainiao Ahead of Double 11 Shopping Festival

Rhea-AI Summary

BEST Inc. (NYSE: BEST) announced the launch of a new cross-border e-commerce logistics service between China and Malaysia, in partnership with Cainiao Smart Logistics Network. This service will enhance customs clearance, sea freight forwarding, overseas warehousing, and last-mile delivery, allowing Malaysian consumers to receive parcels as quickly as the next day post-customs clearance. As part of BEST's expansion in Southeast Asia, the company aims to support local SMEs and facilitate e-commerce growth, with plans for 270 service stations and advanced sorting technology within the next three years.

Positive

• Launch of cross-border e-commerce logistics service enhancing delivery efficiency.
• Partnership with Cainiao Network strengthens market position in Southeast Asia.
• Plans to expand service stations to 270 and enhance sorting technology within three years.
• Expected 30% growth in Malaysian e-commerce sector, driven by online shopping adoption.

Negative

• None.

HANGZHOU, China, September 22, 2020 /PRNewswire/ -- BEST Inc. (NYSE: BEST) ("BEST" or the "Company"), a leading integrated smart supply chain solutions and logistics services provider in China, together with Cainiao Smart Logistics Network ("Cainiao Network"), announced the launch of an end-to-end logistics service between China and Malaysia today, facilitating the growth of cross-border e-commerce and expanding BEST's footprint in the Southeast Asia region.

The partnered logistics service will cover customs clearance, sea freight forwarding, overseas warehousing and last-mile delivery, meaning BEST will send e-commerce parcels from cross-border warehouses in China to Malaysia via international shipping and deliver those parcels to consumers directly through its local express network. BEST's integrated solution will streamline cross-border e-commerce and shorten shipping durations, allowing Malaysian consumers to receive parcels as soon as the next day upon clearing customs in Malaysia.

"The China-Malaysia e-commerce logistics service is a great example of how BEST leverages technology and innovation in order to empower our business partners and enrich the lives of consumers, with efficient delivery services. Southeast Asia has been a key focus area of BEST's global strategy. Through investment in automation, information technology and logistics networks, we have developed express delivery networks in five markets in the region, providing customers with speedy, reliable, and cost-efficient services, while facilitating the growth of local SMEs and cross-border e-commerce," said Johnny Chou, Chairman and CEO, BEST Inc.

"The establishment of a direct Malaysia-China e-commerce logistics service is continued affirmation of our investment into the region. Following the launch of Alibaba's first overseas electronic World Trade Program (eWTP) hub[1] in Kuala Lumpur in 2017, this initiative will go towards supporting SMEs that are looking to engage in cross-border trade. With a direct logistics service, Malaysian SMEs can look forward to selling goods to China via the Malaysian Pavilion[2] on Alibaba.com, while consumers in Malaysia will benefit from better customer experience when buying from Chinese merchants," said James Zhao, General Manager, Cainiao Network.

The new service follows BEST's launch of express delivery services in Malaysia, Cambodia and Singapore in July and demonstrates how BEST can leverage technology and extensive last-mile networks to support the massive growth in cross-border e-commerce deliveries. Since 2019, BEST has built efficient express networks in five countries in Southeast Asia including Thailand and Vietnam, opening up cross-border services between China and these markets. For Malaysia and Singapore in particular, air freight forwarding is also available which further reduces cross-border delivery duration to as short as four days after parcels depart from China. In the first half of 2020, the Company delivered 25 million parcels in the Southeast Asia region.

With increased technology adoption and internet penetration, the Malaysian e-commerce sector is expected to grow about 30% in 2020[3]. This growth has been accelerated by the pandemic and subsequent enforcement of Movement Control Order (MCO) in March, which increased consumers' adoption of online shopping and the growth of e-commerce logistics services.

BEST's current express network in Malaysia is comprised of over 100 last-mile service stations, with future plans to operate 270 stations and seven sortation centers in the next three years. These plans also include the establishment of a flagship smart sortation hub in Kuala Lumpur that will be equipped with cutting-edge technology such as high-speed automatic sorting and scanning. During the region's recent 9.9 sales event, BEST's parcel deliveries tripled in East Malaysia and this is expected to increase significantly during the upcoming Double 11 shopping festival.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as BEST's strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about BEST's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: BEST's goals and strategies; BEST's future business development, results of operations and financial condition; BEST 's ability to maintain and enhance its ecosystem; BEST 's ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About BEST Inc.

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-add services, including express and freight delivery, supply chain management and last-mile services, truckload service brokerage, international logistics and financial services. BEST's mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. For more information, please visit: http://www.best-inc.com/en/.

About Cainiao Network Technology

Cainiao Network Technology Co., ("Cainiao"), founded in May 2013, is a technology company and the logistics affiliate of Alibaba Group. It adopts a collaborative approach to logistics with an innovative and open data platform that improves efficiency and customer experience for all players along the supply chain. It carries forward Alibaba's mission of making it easy to do business anywhere by aiming to deliver anywhere in China within 24 hours, and across the globe within 72 hours.

Media Contact 

Jill Mao
mmj@best-inc.com
+852 3611 2564

Semantha Tan
Semantha.tan@alibaba-inc.com
+65 8200 4296

[1] https://www.alizila.com/ewtp-finds-base-malaysia/
[2] https://www.alizila.com/malaysias-new-e-hub-boon-local-firms/
[3] https://opengovasia.com/malaysian-e-commerce-sector-predicted-to-grow-up-to-30-in-2020/  

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SOURCE BEST Inc.

FAQ

What is BEST Inc.'s new service launched on September 22, 2020?

BEST Inc. launched a cross-border e-commerce logistics service between China and Malaysia.

How will the new logistics service benefit Malaysian consumers?

Consumers can receive parcels as soon as the next day after clearing customs.

What is the expected growth rate of the Malaysian e-commerce sector in 2020?

The Malaysian e-commerce sector is expected to grow about 30% in 2020.

Which company partnered with BEST Inc. for the logistics service?

Cainiao Smart Logistics Network partnered with BEST Inc. for the logistics service.

What are the future plans for BEST Inc.'s logistics network in Malaysia?

BEST plans to expand to 270 service stations and establish advanced sorting technology in the next three years.