On the evening of November 3, STO Express Co., Ltd. (hereinafter referred to as "STO Express") announced the completion of its acquisition of Zhejiang Daniao Logistics Technology Co., Ltd. (hereinafter referred to as "Daniao").

Public records show that Daniao was established in 2019 by Cainiao, serving as the operating entity for Cainiao Express, one of Cainiao's business segments. It provides door-to-door pickup, transit delivery, and reverse return services for e-commerce platforms such as Tmall, Tmall Supermarket, and Taobao, as well as consumers, through a nationwide self-operated network.

On July 25 this year, STO Express announced its intention to acquire 100% equity in Daniao from Zhejiang Cainiao Supply Chain Management Co., Ltd., Hangzhou Ali Venture Capital Co., Ltd., and Alibaba (China) Network Technology Co., Ltd. for a transaction value of RMB 362 million. Upon completion, Daniao would become a wholly-owned subsidiary of STO Express and be included in the company’s consolidated financial statements.

On October 29, STO Express received the "Decision on Non-Prohibition of Concentration of Undertakings" issued by the State Administration for Market Regulation, indicating no objection to the acquisition.

The latest announcement stated, "The transaction has been successfully completed, and Daniao has completed the industrial and commercial registration change procedures." According to the updated business license, Daniao has a registered capital of RMB 498 million, with Zhou Shaohua as its legal representative. Established on August 31, 2009, its business scope includes express delivery services, road freight transportation, and food sales, among others.

Following the acquisition, STO Express will become the only express logistics group in China with both franchise and self-operated networks. STO Express will indirectly hold 100% equity in Daniao, making it a wholly-owned subsidiary. Daniao’s 59 distribution centers, over 2,600 service outlets, and high-value daily orders exceeding 4 million will be deeply integrated with STO Express’s existing network.

In Q3 2025, STO Express reported revenue of RMB 13.546 billion, up 13.62% year-on-year, with net profit attributable to shareholders of RMB 302 million, a 40.32% increase. Non-GAAP net profit rose 59.62% to RMB 322 million. For the first three quarters, revenue reached RMB 38.57 billion, up 15.17% year-on-year, while net profit attributable to shareholders grew 15.81% to RMB 756 million. Non-GAAP net profit increased 18.71% to RMB 758 million.

In terms of business volume, STO Express handled 18.86 billion parcels in the first three quarters, up 17.1% year-on-year, with a market share of 13%, reflecting steady growth.

Data shows that Daniao operates in approximately 300 cities across China, with average daily orders exceeding 4 million in 2024 and the first four months of 2025. In 2024, Daniao reported revenue of RMB 12.351 billion and a net profit of RMB 20.1154 million, but net cash outflow from operating activities reached RMB 1.231 billion. From January to April 2025, revenue stood at RMB 2.965 billion, with a net loss of RMB 233 million and net cash outflow from operating activities of RMB 279 million.

STO Express explained that Daniao’s relatively weak profitability is due to its short operational history, ongoing business growth phase, and insufficient economies of scale. Additionally, the traditional off-season and declining industry prices in early 2025 contributed to the losses.