Jingdong'S Independent Logistics Business Paved The Way For Listing?

After the financial structure of VIE is split, the future Jingdong logistics will become the next entry which can be independently financing or listing.

In April 25th, Jingdong announced the formation of a logistics sub group. It was Wang Zhenhui, the former senior vice president of Jingdong group and the head of Jingdong mall operation system, CEO.

Wang Zhenhui said that the logistics sub group is a wholly owned subsidiary of Jingdong group. It does not rule out the possibility of independent financing and listing in the future, but there are no specific plans at present.

Insiders said that in order to seek more room for development, Jingdong logistics will have a high possibility of independent listing in the future.

Independent logistics business

According to Jingdong's briefing on the conference, Jingdong logistics sub group will provide partners with products and services including integrated supply chain solution services, logistics cloud and logistics technology services, business data services, cross border logistics services, express delivery and express services, etc., and will also jointly link Jingdong mall to share online and offline channel resources, and jointly promote the innovative financial products and insurance products of Jingdong finance.

Wang Zhenhui said that the Jingdong logistics sub group after independence will have more independent management and decision-making power, and is committed to coordinated development with businesses and social logistics enterprises.

But the formation of logistics sub group is not split, Jingdong logistics is still a wholly owned subsidiary of Jingdong group.

At the same time, the Jingdong logistics announced the future development plan.

Jingdong said that in the next five years, Jingdong logistics sub group will expand the logistics center area to more than 50 million square meters, expand 15 times the current cold storage area, operate more than 20 self operated overseas warehouses and cover more than 100 countries and regions, including "one belt and one road", and deep collaboration with dada's crowdsourcing network.

Wang Zhenhui said that with the continuous improvement of network layout and construction, five years later, Jingdong logistics will become a leader in supply chain solutions and supply chain technology in China, and will become a logistics technology service provider with an annual revenue of over 100 billion.

Cai Jin, vice president of China logistics and purchasing Federation, said that the development of Jingdong logistics sub group is conducive to promoting the overall cross-border integration of Jingdong group, so that the service object and business scope will no longer be confined to the field of electricity providers, but also include express delivery, cross-border, technology supply chain, and so on. At the same time, it also covers the integration of industries, such as clothing, medicine, new energy and other industries, and promotes Jingdong group to form a new format in the process of cross-border integration.

Paving the way for listing?

Jingdong announced the establishment of a logistics sub group, which is regarded by many of the industry as "after that".

Prepare for independent listing.

In response, Wang Zhenhui said that the company is open-minded about the further operation of the future capital market, and the logistics sub group does not rule out the possibility of independent financing and listing in the future, but there are no specific plans at present.

The establishment of the sub group does not involve the issue of splitting and listing.

In the view of Li Chengdong, a business angel investor and an e-commerce analyst, it is similar to Alibaba's spin off of ants' gold clothes, and the value of Jingdong logistics will be very high after its independence from the group business.

Independent operation will make Jingdong logistics have more room for development, and it will also generate financing and listing.

If the future financing is from the perspective of capital market, investment institutions may not pay close attention to the short-term profit situation of Jingdong logistics, because as long as they can quit before and after the listing, they can generate large profits, so the possibility of Jingdong logistics listing in the future is also very high.

It can be seen that there are many cases of independent operation of large enterprises in the industry after splitting up high-quality projects, including rookie network, Jingdong finance, and some of the group that has been confirmed to be partially dismantled from Tencent.

Tong Weiliang, capital founding partner of Indus tree, said that the scale of independent businesses separated from large enterprises is generally large, and most of them will cause late capital concerns.

At the same time, some shareholders of Jingdong group will pay more attention to the logistics business.

But Tong Wei Liang also said that the Jingdong logistics after independence will increase more enterprise level services.

Li Chengdong also said that the Jingdong logistics group put the positioning in an integrated supply chain solution provider including e-commerce, finance, insurance, data, technology and so on, which will allow Jingdong logistics to have more imagination in the capital market.

But it is also necessary to note that the supply chain market is much larger than the simple express market. Compared with the more C oriented services for consumers, there are different requirements in terms of warehouse construction, trunk setting and user experience when serving B users. This is also the process of logistics adaptation for Jingdong.

Resources open to trend

As far as the domestic logistics industry is concerned, the high cost of social logistics is a difficult problem for enterprises to develop.

Statistics show that the total cost of social logistics in China accounts for about 15% of GDP, almost two times that of developed countries such as Europe, America and Japan.

In this context, opening up enterprise resources has become the choice of most distribution logistics enterprises.

Zhang Jindong, chairman of Suning Yun Shang, also proposed Suning logistics's open strategy in 2015, indicating the ability to open commodity supply chain, logistics and service to the whole industry.

Wang Zhenhui said that the core goal of Jingdong logistics sub group is to help partners in the upstream and downstream industries, reduce supply chain costs and improve circulation efficiency.

Jingdong logistics is not a traditional logistics enterprise and express company, but an open value network.

It is understood that Jingdong logistics in 2016

Open to the society.

Up to now, Jingdong logistics has reached cooperation with many brands including Lining, mengbazaar, Baishao flavor, staging music, Luo Ji thinking, Mengniu, etc.

Cai Jin said that the establishment of Jingdong logistics sub group has released the demonstration effect of Jingdong logistics. Besides the low-end pportation and warehousing services, the industry is heading for high-end development direction.

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