JD Logistics listed on Hong Kong Stock Exchange on 28th May with the ticker 2618.HK.
An IPO celebration ceremony was hosted at JD.com’s headquarters in Beijing, virtually connected to the exchange in Hong Kong. The opening price was US$5.2, and the IPO raised an estimated US$3.1 billion.
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Nine representatives stood on the stage in Beijing to virtually ring the gong. They included JDL’s customers, clients and frontline employees. Willie Tan, executive officer of Skechers Greater China, Southeast Asia and South Korea, and JD Logistics’ six-axis robot (a logistics robot arm used in warehouse automation) sounded the gong together.
Rui Yu, CEO of JD Logistics said in his remarks at the ceremony, “JD self-built its own logistics network in 2007. In the past 14 years, JD Logistics has taken the improvement of the customer experience as its responsibility. Through unrelenting investment in logistics infrastructure and technology, JD Logistics has launched services such as “211” (same- and next-day delivery) and 24-hour delivery in tens of thousands of counties and towns, redefining logistics service standards and providing JD.com customers with the best experience in the world.”
JD Logistics is the largest integrated supply chain and logistics provider in China in terms of revenue in 2020. The company operates a network of over 1,000 warehouses covering approximately 21 million square meters.
It opened its first Asia No. 1 warehouse in Shanghai in 2014 and now has 32 such warehouses across China, including a fully unmanned warehouse which can process more than 1.3 million orders per day during peak seasons. JD Logistics has over 240,000 personnel, including 190,000 in-house couriers who deliver all across the nation, including the hardest to reach areas of remote villages and islands, day in and day out.
Yu added, “Following 10 years of incubation and accumulation of experience, JD Logistics opened up to the outside world in 2017, embarking on a new period of ‘integrated supply chain’ development. In 2020, JD Logistics provided supply chain solutions and logistics services to more than 190,000 enterprise customers around the world, earning their recognition and trust.”
In addition to its own warehouse fleet, the company has over 1,400 cloud warehouses operated by third-party warehouse operators, enabling existing warehouses to become intelligent and digitalized thanks to JD’s technology. Today JD Logistics external client revenue has already reached 46.6% of total revenue.
Reflecting on the meaning of the IPO, Yu said: “This IPO allows JD Logistics enter a new stage of development, and also symbolizes taking on more social responsibility. In the future business scale and people organization will change, but the ‘customer first’ philosophy certainly will not. Business logic based on experience, efficiency and cost will not change. Adhering to the ‘noble principle of doing the right thing the right way’ also definitely will also not change.”
According to the company’s prospectus, JD Logistics proceeds will be used to upgrade and expand its logistics networks; to develop advanced technologies to be used in its supply chain solutions and logistics services; expanding the breadth and depth of existing solutions and for penetrating existing customers and attracting potential customers, specifically though investments in sales and marketing personnel and industry solutions development; and general corporate purchases and working capital needs.
Yu closed: “In the future, JD Logistics will take ‘driving superior efficiency and sustainability for the global supply chain’ as its mission and use its technology-driven integrated supply chain to maximize its support of the real economy and the development of new businesses and continue to provide clients with the a high quality experience and enable them to enjoy the most trustworthy service. We will also work with our partners to reduce social logistics costs and drive efficiency improvement for business and society.”
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JD Logistics is the third JD entity to list on HKEx, joining JD.com (9618.HK), which completed its secondary listing on HKEx last Jun. 18, and JD Health (6618.HK), which listed last 8th December.