Benzinga | Jul 22, 2021 06:08AM EDT

Baozun Deepens Strategic Partnership with Cainiao

Baozun Inc. (NASDAQ:BZUN) ("Baozun" or the "Company"), the leading brand e-commerce service partner that helps brands execute their e-commerce strategies in China, announced today that Baozun and its wholly-owned subsidiary, Baotong Inc. ("Baotong") have signed a letter of intent ("LOI") with Cainiao for its equity investment ("Investment") in Baotong, Baozun's warehousing and fulfillment solution subsidiary. Baozun, Baotong and Cainiao have also entered into a Letter of Intent of Business Cooperation Agreement ("LOI of BCA") to further explore and develop brand e-commerce opportunities.

The Company believes Cainiao's Investment in Baotong will help the Company to accelerate its pace to capture growing opportunities in China's e-commerce industry. The completion of the Investment will enable the Company to leverage Cainiao's national logistics expertise and technology to greatly improve its cost structure and enrich its service portfolio.

Concurrently, Baozun, Baotong and Cainiao have entered into the LOI of BCA, pursuant to which the parties will cooperate to develop competitive solutions in customized, high-value and digitalized logistics services. Baotong may also provide operational and technological management and consulting services, to Cainiao's broader customer base.

Except for the provisions regarding exclusivity, confidentiality, expenses, public disclosure, governing law and dispute resolution, the LOI and LOI of BCA are not legally binding on the parties. The completion of the proposed transaction under the LOI is subject to negotiations among the parties regarding the signing of definitive agreements and the fulfilling of customary closing conditions contained therein.