Feb 18, 2021|
JD Logistics Prospectus: Robust Steady Growth and Continuous Investment in Technology
by Yuchuan Wang
On Feb. 16, JD Logistics (JDL), China’s leading technology-driven supply chain solutions and logistics services provider, officially filed its IPO prospectus with Hong Kong Stock Exchange (HKEx).
According to the prospectus, despite the impact of the COVID-19 outbreak, JD Logistics’ revenue increased by 43.2% from RMB 34.6 billion yuan for the nine months ended Sep. 30, 2019 to RMB 49.5 billion yuan for the nine months ended Sep. 30, 2020. As of Sep. 2020, the company had cash and cash equivalents of RMB 9.8 billion yuan.
Started as the internal logistics arm of JD.com in 2007, JD Logistics has created one of the best experiences for over 400 million JD customers and improved the efficiency of its clients’ supply chain management. Since 2012, JD Logistics has helped JD.com maintain its inventory turnover consistently below 40 days, despite millions of SKUs (stock-keeping-units), and reduce its fulfillment expense ratio from 7.2% in 2016 to an industry-leading 6.5% in the nine months ending Sep. 30, 2020.
In 2017, JD Logistics began to open up its solutions and services. Since then, the company has seen revenue contribution from external customers as a percentage of total revenue increase from 29.9% in 2018 to 38.4% in 2019, and further increase to 43.4% in the nine months ended Sep. 30, 2020.
Technology is at the core of JD Logistics’ development, allowing the company to attract new customers as well as to further penetrate existing customers. As of Dec. 31, 2020, JD Logistics is entitled to over 4,400 patents and computer software copyrights (including applications thereof), of which over 2,500 relate to automation and unmanned technologies.
Housing a logistics network which covers nearly all of the population in China, JD Logistics currently has over 250,000 employees, operates over 800 warehouses, and serves over 190,000 business clients.
JD Logistics plans to use the fund raised to invest in the expansion and upgrade of its logistics networks, and develop advanced technologies to be used in supply chain solutions and logistics services including the research of fundamental technologies such as 5G, cloud computing, IoT and more to drive long-term service innovation.
Click here to read the prospectus filed with HKEx.
Nov 7, 2024|
CIIE 2024: JD.com to Expand Imports of Specialty Brands, Strengthen Healthcare Partnerships, and Enhance Logistics
At the 7th China International Import Expo (CIIE) on November 5, JD Super, the supermarket division of JD.com, announced a major initiative to broaden its selection of imported specialty. Over the next three years, JD Super plans to introduce over 1,000 new international brands to meet the increasing demand for high-quality, diverse imported goods.
Meeting the Growing Demand for Quality Imports
According to JD Worldwide’s “White Paper on 2024 China Cross-Border Consumption Trends,” more than 80% of Chinese consumers are interested in imported products, with many prioritizing authenticity, quality, and fast delivery. In response, JD has significantly expanded its range of international offerings. During the ongoing Singles’ Day Grand Promotion, sales of cross-border products have surged, with more than 600 brands experiencing a sales increase of over 100% compared to last year.
Strengthening High-Quality Food Partnerships
Demonstrating JD.com’s commitment to sourcing high-quality products, JD Super signed a new procurement agreement at CIIE with Huadong Foods and Teys, a major Australian beef brand under Cargill. Under this agreement, JD Super and Huadong Foods will procure $50 million of Teys beef throughout 2025. This partnership underscores JD’s strategy of collaborating with trusted suppliers to provide high-quality, affordable beef to Chinese consumers.
Delivering Authentic Global Goods Efficiently
JD Logistics has built a robust logistics network that spans bonded, direct mail, and overseas warehouses, facilitating fast deliveries of imported items across categories such as electronics, fashion, beauty, food, and baby products. In many major cities, delivery times have been reduced to under 48 hours.
For instance, JD Super’s partnership with Raub of Malaysia enables the import of Musang King durians, which are harvested at peak ripeness and air-shipped with cold chain logistics for delivery within 24 hours. Additionally, JD.com also secured an early supply of Chilean cherries, available since October, which can be delivered in as little as 30 minutes in many areas through JD NOW, its on-demand retail service.
JD.com’s “JD National Pavilions” program, which features over 150 country-themed flagship stores from more than 70 countries and regions, continues to be a cornerstone of its import strategy. Supported by embassies and reputable organizations, this initiative offers Chinese consumers access to premium products and cultural experiences from around the world. In April, JD launched the JD National Pavilion of Mali, introducing popular items like shea butter and garnering over 40,000 followers.
Expanding Healthcare and Logistics Partnerships
JD Health is also making strides at CIIE by strengthening partnerships with leading global healthcare companies, including Merck, Bayer, and Roche. As “China’s premier online health access point,” JD Health is committed to integrating digital and physical healthcare resources to improve access and convenience for patients.
Key collaborations include initiatives with Haleon to promote brain health and anti-aging for the “silver economy,” with MSD China on a digital diabetes management model, and with Teva Pharmaceuticals to provide patient education for conditions such as tardive dyskinesia (TD) and Huntington’s disease (HD).
On the logistics front, JD Logistics announced plans to double its overseas warehouse space by 2025 and expand its network of bonded and direct mail warehouses. JD Express now serves over 60 countries, enhancing cross-border delivery efficiency and supporting both brands and consumers.
Through these efforts, JD.com reaffirms its commitment to sourcing and delivering authentic, high-quality imported products to Chinese consumers, supported by an advanced supply chain that ensures a superior shopping experience.
(vivian.yang@jd.com)
Nov 5, 2024|
JD Logistics Introduces “Zhilang” Intelligent Warehousing Solution at CeMAT Asia 2024
JD Logistics (also known as JINGDONG Logistics) announced today at CeMAT ASIA 2024 its latest Goods-to-Person (GTP) automated warehousing innovation, the “Zhilang” solution. Meaning “Intelligent Wolf”, Zhilang is a proprietary system that improves picking efficiency by over three times compared to traditional methods. This advanced system is already supporting operations during the Singles Day Grand Promotion.
The Zhilang GTP solution combines several technologies, including handling AGVs, lifting robots, and shelving systems, along with automated inbound and picking workstations and an empty tote reflow line. Leveraging warehouse height, Zhilang increases storage density to 2.5 times the industry average for facilities up to 10 meters high.
The system’s modular design enables handling AGVs and lifting robots to operate independently. Powered by JD Logistics’ self-developed “upper tote storage and lower picking scenarios” algorithm and “buffer storage” technology, the network is fully flexible for optimized routing. The high-precision navigation algorithm, dual-direction laser obstacle detection technology, and vision-based verification ensure precise retrieval with minimal error. Additionally, Zhilang’s payback period is 30% shorter than comparable solutions.
Currently, nearly 100 Zhilang AGVs and lifting robots are in operation at an intelligent logistics park in Beijing, handling nearly a million items, from tops to shoes. With a click, pickers receive requested items directly from the robots, enabling a seamless, automated order fulfillment process from inbound to outbound.
JD Logistics continues to advance logistics operations with a wide array of solutions, including the the Tianlang Tote Shuttle GTP system, Dilang AGV GTP system, Four-way Pallet Shuttle Storage system, Auto Remin Wall, and the Aidong mobile data terminal. In terms of software, JD Logistics’ WCS (warehouse control system), WES (warehouse execution system), RMS (robotics management system), 3D SCADA (3D supervisory control and data acquisition), and Lomir intelligent logistics park management platform, are used in over 1,600 JD-operated warehouses and client facilities.
As JD Logistics expands globally, its solutions now serve thousands of corporate clients across dozens of countries and regions, including Poland, the Netherlands, Germany, South Korea, the United States, and throughout Southeast Asia, the Middle East, and beyond.
JD Logistics Prospectus: Continuous Technology Investment to Drive Long-term Innovation
