On August 8, 2025, Huitongda Network Co., Ltd (9878.HK) entered into a comprehensive AI collaboration agreement with Alibaba Cloud, aimed at developing AI-driven digital solutions for rural markets.

This collaboration focuses on enhancing smart retail operations, member operations, and optimizing smart supply chains, thereby improving the operational efficiency of family-owned stores in rural areas.

A key component of the partnership is the integration of Alibaba's 'Qwen' Large Language Model (LLM), which will create a 'Small Shop LLM Agent' to automate customer interactions and improve marketing and inventory management.

Alibaba Cloud will provide essential cloud computing resources and high-performance computing power to support Huitongda in rapidly training AI models and enhancing product distribution.

Huitongda currently operates approximately 248,000 member stores across 21 provinces in China, serving over 300 million consumers, and aims to leverage this partnership to empower rural retailers and bridge the urban-rural digital divide.

This initiative aligns with national strategies like 'Digital China' and 'Rural Revitalization', focusing on enhancing technological capabilities in rural markets and promoting equitable access to resources.

In 2024, Huitongda's Service Business generated revenue of RMB 610.5 million, underscoring its strong position in the B2B rural market and its commitment to 'AI+SaaS' development.

Key figures involved in the agreement include Wang Jianguo, Chairman of Huitongda Network, and Liu Weiguang, Senior Vice President of Alibaba Cloud Intelligence Group.

Additionally, a 'Sales Forecast AI Agent' will be developed to provide rural stores with precise procurement and stocking solutions, further optimizing supply chain efficiency.

The collaboration aims to enhance operational efficiency and product recommendation accuracy in rural retail stores, ultimately supporting the digital transformation of rural commerce.