Alibaba trims stake in ZTO Express, cashes out about $500 million

Alibaba has sold a portion of its Class A ordinary shares (ADS) in ZTO Express, cashing out approximately $500 million (roughly RMB 3.354 billion). Following the transaction, Alibaba's stake in ZTO Express has been reduced to 6.1%.

Alibaba Continues to Divest Non-Core Assets

This reduction in ZTO Express is the latest move in Alibaba's ongoing strategy to dispose of non-core assets. As previously reported by Southern Metropolis Daily, in 2023, Alibaba—which had historically maintained a broad investment portfolio—launched its "1+6+N" organizational restructuring, gradually exiting non-core asset areas and further focusing on its main business through business unit spin-offs.

Since then, Alibaba has:

• Reduced holdings in GOGOX, XPeng, and Beijing Enlight Media
• Sold stakes in Intime Retail and RT-Mart
• Continuously reduced holdings in YTO Express and Yunda Express within the logistics sector
• Fully exited its position in Best Inc.

Specifically, Alibaba's combined stake in YTO Express has fallen to 14.75%, while its stake in Yunda Express has dropped to 0.71%, removing it from Yunda's top ten shareholders list. In May 2025, reports indicated that Alibaba had been in discussions with investment banks regarding further divestments.

Historical Context: Alibaba's Investment in ZTO

In the past, Alibaba invested in the "Tongda" express delivery companies to build logistics fulfillment capabilities that supported its e-commerce expansion. ZTO Express was one of the longer-held investments in this group.

In 2018, Alibaba, Cainiao Network, and ZTO Express entered into a strategic investment agreement, with Alibaba investing $1.38 billion in ZTO for approximately a 10% stake, aiming to enhance digitalization, online capabilities, and intelligence in logistics. The two parties had previously outlined plans to collaborate around new retail initiatives.

Alibaba Still Holds 25% of STO Express

However, this does not mean Alibaba has abandoned logistics. Among the "Tongda" companies, STO Express—in which Alibaba still holds a 25% stake—has acquired Cainiao's domestic logistics arm, Daniao Logistics, gradually strengthening its high-end product offerings and driving significant business volume growth.

Meanwhile, to concentrate resources on its core e-commerce business, Alibaba has integrated Cainiao's domestic supply chain directly into its China e-commerce business group. Following this adjustment, Cainiao retains its international logistics and logistics technology operations. However, starting from fiscal year 2026, Alibaba has adjusted its financial reporting structure, and Cainiao is no longer reported as a separate business segment but is included under "All Others."

Industry Perspective

Industry analysts suggest that Alibaba is scaling back its financial investments in the "Tongda" companies, redirecting resources toward its core e-commerce and instant retail businesses. At the same time, Alibaba is actively advancing its RMB 380 billion AI infrastructure initiative.

Alibaba CEO Eddie Wu emphasized at the 2026 Yunqi Conference that the company remains committed to building a comprehensive full-stack AI system, covering a five-layer architecture including chips, cloud models, model services, and intelligent agent applications.

According to Huatai Securities, based on current plans, Alibaba is expected to continue investing heavily in computing power, with investment intensity likely exceeding the previously announced RMB 380 billion target.

(Source: Southern Metropolis Daily)