Alibaba sells stake in e-commerce branding services firm Baozun for US$21.8 million as part of corporate restructuring

Alibaba Group Holding is selling its entire stake in e-commerce branding solutions provider Baozun, as the Chinese technology giant continues its corporate restructuring amid increased industry competition.

Hangzhou-based Alibaba, owner of the South China Morning Post, on Thursday signed a deal to sell 26.5 million Baozun shares to Champion Kerry for US$21.8 million, according to Baozun’s latest regulatory filing. Those shares represent about 14.4 per cent of the total outstanding shares of Baozun as of March 31 this year.

That transaction followed Alibaba’s disposal of nearly US$360 million worth of Bilibili shares in March at a significant discount, according to stock exchange filings. In the same month, the e-commerce giant also raised about US$314 million from its sale of 33 million US-traded shares of electric vehicle maker Xpeng.

The latest deal shows Alibaba’s continued adjustment of the corporate overhaul it announced in March last year, underscoring the impact of China’s shaky post-pandemic economic recovery that has weakened consumer spending and resulted in slower growth for the domestic internet sector.