HONG KONG IPO: JD Logistics
1 May 2021
JD Logistics, a subsidiary of China’s second largest e-commerce company JD.com Inc (JD US/9618 HK), has received the Hong Kong Exchange’s approval for its IPO.
JG Logistics is expected to list in May. The company seeks to raise US$3bn to US$4bn, with an initial valuation of around US$40bn.
JD Logistics is the leading technology-driven supply chain solutions and logistics services provider in China. It offers a full spectrum of supply chain solutions and high-quality logistics services enabled by technology, ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items.
According to the CIC Report, JD Logistics is the largest player in China’s integrated supply chain logistics services market in terms of total revenue in 2019. Revenue grew by 31.6% YoY from RMB37.9bn in 2018 to RMB49.8bn in 2019, and surged by 43.2% YoY from RMB34.6bn in 9M19 to RMB49.5bn in 9M20. While the company remains loss-making, the bottom line has improved substantially in 2020 to a net loss of RMB11.7mn, from losses of RMB2.8bn and RMB2.2bn in 2018 and 2019, respectively.
