Eastern Airlines Express Co., Ltd. (EAE), a wholly owned subsidiary of Eastern Airlines Logistics Co., Ltd. (EAL), was honored the new business license by the Administration of Industry and Commerce of China (Shanghai) Pilot Free Trade Zone ("Pilot Zone") on November 6, 2013, marking a conclusion of filing formalities for the first logistics enterprise of EAL which settles in the Pilot Zone. EAE will carry out relevant business with preferential policies of the Pilot Zone.

Since the beginning of 2014, EAE has officially spun off its traditional business and started trial practice as response to the strategic transformation of EAL. To get out of the freight-stricken dilemma and improve the passive situation of traditional airfreight to be agented at a fixed price, EAE creatively put forward the idea of "express+e-commerce+trade". The new mode aims to develop EAE a direct client of airlines so as to extend the industrial chain and improve the profitability. Operation mode: introduce a large amount of good foreign goods of comparative advantages through global purchasing and increase direct client sources for international return flights by fully utilizing the spare power; apply B2C sales to some goods imported in the B2B mode by virtue of "EAEMALL" platform, thus increasing the profitability; provide basic supplies for independent delivery divisions; such independent delivery divisions in turn accelerate construction of delivery networks with basic supplies provided via the E-commerce platform and trading. As a result, they not only provide high quality services for E-commerce platforms but promote the network construction to further meet direct transport needs in the future. The whole industrial chain operation mode, mutually promoted and driven, run smoothly and demonstrates broad development prospect. Government authorities and relevant industries also pay close attention to this mode as it explores a new path for future cross-border e-commerce operation in the Pilot Zone.

The whole industrial chain operation mode designed by EAE is so conducive for governmental supervision on the cross-border e-commerce in the pilot zone that General Administration of Customs, Shanghai Municipal Development & Reform Commission, Shanghai Municipal Commission of Commerce and Shanghai Customs all visited EAL for special research. Ever since the establishment of the Pilot Zone, EAE has initiated the change of registered place to improve the operation mode with further practice. A-month negotiation involving several parities has finally come to an end on November 6. EAE successfully obtained the new business license with trade and e-commerce business included in the business scope. The business license fully ensures EAE to further carry out new business under guarantee of preferential policies in the Pilot Zone.

At present, EAE is gearing up for "11.11 Shopping Festival" this year. Vigorous promotion in the preliminary stage has spurred the registered members of EAEMALL over 10,000. The repost number of Weibo and WeChat has now exceeded 20,000. All departments of EAE are well prepared for every link including source purchasing, website maintenance, client service and delivery. It is expected that the daily order on November 11 will hit 2000 with the sales over RMB 500,000.

(EAE Fu Damao Wang Qian)