Core Viewpoint - Shentong Express has received approval from the State Administration for Market Regulation for its acquisition of Zhejiang Daniao Logistics Technology Co., Ltd, allowing the company to proceed with the transaction, which is valued at RMB 362 million [1][4] Group 1: Acquisition Details - The acquisition involves Shentong's wholly-owned subsidiary purchasing 100% of Daniao Logistics, which is primarily owned by Cainiao Supply Chain and Alibaba [1] - Daniao Logistics, established in 2009, has a registered capital of RMB 490 million and provides logistics services to major e-commerce platforms across approximately 300 cities in China [1] Group 2: Financial Performance of Daniao Logistics - For the fiscal year 2024, Daniao Logistics is projected to generate revenue of RMB 12.351 billion, with a net profit of RMB 20.1154 million [2] - In the first four months of the current year, Daniao reported revenue of RMB 2.965 billion but incurred a net loss of RMB 234 million, attributed to seasonal business slowdowns and declining industry prices [2] - Daily business volume for Daniao Logistics is expected to exceed 4 million orders in both 2024 and the first four months of 2025 [2] Group 3: Strategic Implications for Shentong Express - The acquisition is anticipated to enhance Shentong's competitive edge and long-term sustainability by optimizing its express delivery network and increasing business scale [4] - Post-acquisition, Daniao will become a wholly-owned subsidiary of Shentong, fully integrating its personnel, assets, and operations into Shentong's management [4] - The transaction is expected to improve Daniao's profitability and, consequently, Shentong's overall profitability and sustainable operational capacity, especially as the industry enters its peak season [4] Group 4: Industry Context - The State Post Bureau has been encouraging mergers and acquisitions in the express delivery sector to promote strong partnerships and resource integration among companies [4] - Recent trends in the industry show a slowdown in business volume growth, with a decline in revenue growth rates due to price increases and reduced competition [5] - Shentong's third-quarter report indicated a revenue of RMB 13.546 billion, a year-on-year increase of 13.62%, and a net profit of RMB 302 million, reflecting a 40.32% increase [5]