Nov 9, 2022|
JD Technology Sets Mortgage Loan Example with Biological Assets as Collateral
by Doris Liu
China’s HengFeng Bank, with the assistance of the biological asset supervision platform developed by JD Technology, provided mortgage loans for 160 heads of live beef cattle, the first of such kind across the country, setting an example of digital finance nationwide, as reported by the international market research firm IDC.
According to data from the Chinese Academy of Social Sciences, the funding gap of China’s “three rural issues” – agriculture, rural areas and farmers – reached RMB 3.05 trillion yuan in 2018. However, China’s rural finance is confronted with multiple obstacles, such as insufficiency of effective credit data and lack of collateral. Financial institutions have been reluctant to accept biological assets as collateral, although they hold significant potential as collateral in rural areas, in terms of evaluation, ownership confirmation, supervision, disposal, etc.
Utilizing JD Technology’s platform, HengFeng Bank granted RMB 1.75 million yuan to Wang Yuhe, a cattle producer of Hengchang Farm in Heze, Shandong province. Connecting with camera equipment installed in the cattle ranch and smart ear tags attached to the ears of 160 cattle, the platform collects dynamic data on each head of cattle 24/7 in real time, monitoring and recording the growth information and health status throughout the life cycle of beef cattle production. Meanwhile, the data are synchronously uploaded to blockchain to ensure the uniqueness, authenticity as well as protection against being tampered with or reproduced, largely reducing the bank’s lending risks and easing Wang’s financial pressure.
Creating a digital twin on blockchain ensures that all information of a physical animal will be saved immutably, which enables biological assets to qualify as collateral. The biological asset supervision platform, integrated with AI, big data, blockchain, IoT and more technologies, has been applied in production of livestock including cattle, sheep and pigs, and poultry and fish by monitoring them with cameras, smart IoT devices of ear tags, collars and leg rings; and equipment including water quality sensors, temperature and environment control and ultrasonic instruments to match different animals’ traits.
For example, aquaculture supervision solutions based on the platform were launched in July 2022 by linking dissolved oxygen sensors, pH sensors, Oxidation-Reduction Potential (ORP) sensors and other IoT devices, underwater cameras, intelligent feeding systems and more, which will simplify the process of loan application for fish farmers and banks.
On the consumer side, JD Technology’s platform also guarantees product quality, as it supports full traceability of meat products. In some cases, the amount of walking chickens have done before butchery can be assessed with a specially designed pedometer similar to a poultry leg band, which is connected to the platform, to ensure the quality of the meat.
Farmers can more easily spot any risks to their livestock, plants and the environment with the platform. The IDC report believes that the digitalized biological asset supervision helps bring more financial support to rural areas. Apart from loans, financial institutions can lower the threshold to offer bespoke livestock insurance to mitigate the multitude of risks faced by farmers. Furthermore, governments are able to distribute subsidies to farmers more precisely through the platform, further boosting the ongoing rural revitalization.
Sep 27, 2024|
Leveraging AI to Drive Innovation, Reduce Costs, and Create Jobs: Insights from JD.com’s Chief Economist
At the 2024 FORTUNE Global 500 Summit in Guangzhou on September 26th, Dr. Shen Jianguang, Chief Economist of JD.com, shared how the company utilizes AI to transform its operations across retail, logistics, and more, while driving significant workforce expansion. “By integrating advanced technologies throughout our business, JD.com has more than tripled its workforce in the past six years from 180,000 to 620,000, all while increasing salaries,” Dr. Shen explained during the panel discussion titled “‘Changes and Opportunities’—Chief Economists’ Perspectives.”
AI tools have enabled JD.com to boost efficiency and elevate the customer experience. For example, JD’s AI-driven digital human livestream hosts have helped over 5,000 brands increase off-peak hours’ sales conversion rates by 30%. Additionally, AI-powered customer service representatives offer more personalized support, and logistics couriers use AI to deliver packages faster and with greater sustainability.
JD.com’s customer service representatives
“The competition in China is so fierce, and that’s what drives innovation—you have to innovate to survive,” said Dr. Shen, underscoring the role of innovation in reducing costs and increasing productivity. This is especially crucial in China’s e-commerce landscape, where consumers are becoming more price-conscious. “Consumers are looking for the ‘extreme quality-to-price ratio,’ meaning they want high-quality products at lower prices,” he added. At the same time, Dr. Shen noted a growing trend in rural and lower-tier markets, where significant growth opportunities are emerging.
Dr. Shen also discussed China’s recent economic stimulus packages. “Policy initiatives are important. When people perceive a shift in policy, the market responds,” he said, referring to the government’s subsidies for home appliance trade-ins introduced earlier this year. This program has stimulated demand for affordable, high-quality products, as reflected in the increased sales of subsidized items.
Guangzhou, the host city for the summit, launched a new round of consumer goods trade-in subsidies on September 1st, positioning online platforms like JD.com as essential providers of seamless trade-in services. Over 800 home appliance brands have partnered with JD.com in Guangzhou, offering more than 8,500 products. Additionally, JD.com is working with its brand partners on a Customer-to-Manufacturer (C2M) model, leveraging consumer insights to drive innovation for more tailored products.
JD.com provides one-stop trade-in services for home appliances and home goods
The panel discussion featured Dr. Shen alongside Minggao Shen, Global Chief Economist at GF Securities, and Robin Xing, Chief China Economist at Morgan Stanley, with FORTUNE Editor-in-Chief Alyson Shontell moderating. The panelists agreed that while AI is still in its early stages, its potential is vast. With China’s stimulus policies and a functioning capital market, the private sector is well-positioned to unlock considerable industrial and social value.
JD.com ranked #47 on the 2024 Fortune Global 500, moving up five spots from the previous year. Guided by its mission to “Make Lives Better through Technology,” the company remains committed to cost management, operational efficiency, and enhancing user experiences, while continuing to invest in employee development and upskilling to foster both business growth and workforce advancement.
(vivian.yang@jd.com)
Sep 13, 2024|
JD.com Showcases Cutting-Edge Supply Chain Innovations at 2024 China International Fair for Trade in Services (CIFTIS)
JD.com unveiled its latest digital supply chain technology advancements at the 2024 China International Fair for Trade in Services (CIFTIS), held in Beijing from September 12 to 16. As a global partner of CIFTIS for the fifth consecutive year, JD.com demonstrated its commitment to driving digital transformation across industries. Notably, JD Cloud’s digital human powered by its ChatRhino (or Yanxi in Chinese) large language model (LLM) and JD Health’s Dermatology Service Platform were recognized with the “China Service Practice Case” and “Innovation Demonstration Case” awards, respectively.
JD Cloud’s ChatRhino AI digital human, a pioneering innovation in the field, played a key role during JD.com’s 618 Shopping Festival, becoming the first large-scale commercialized digital human in the industry. Developed entirely in-house, ChatRhino has supported over 5,000 brands, increased off-peak hours’ conversion rates by over 30%, and logged more than 400,000 hours of live streaming with a reach of over 100 million viewers and more than five million user interactions, the digital human has driven over RMB 10 billion in gross merchandise value.
In April 2023, JD Health launched China’s first online skin hospital, featuring over 6,000 registered doctors, including more than 3,500 from top-tier hospitals. Using JD Health’s Jingyi Qianxun (京医千询) LLM, the platform integrates vast medical expertise to deliver smart diagnostic support. The Dermatology Service Platform streamlines the diagnostic process at every stage of patient care, improving treatment efficiency while maintaining the highest standards of medical care.
At CIFTIS 2024, JD.com also introduced several breakthrough retail technologies, including JD.Vision, an early native application for Apple Vision Pro; Jingyan （京言）, an AI assistant for e-commerce; and Jingdiandian （京点点）, an AIGC-powered content generation platform. JD Logistics presented a virtual logistics park leveraging digital twin technology to simulate operations such as storage, packaging, sorting, and highlighted carbon-neutral logistic park practices. JD Industrials launched the “TAIPU”(太璞) digitally intelligent supply chain solution, tailored to optimize demand, procurement, fulfillment, and operations for industrial products. Additionally, JD Finance presented its suite of digital financial products and services, including consumer finance, payments, and wealth management.
JD’s exhibition also highlighted its digital and physical supply chain integration advancements across various business sectors. Key initiatives included cross-border e-commerce operations through JD Worldwide, omnichannel retail by ochama (JD.com’s Europe-based brand), country-specific online flagship stores known as JD National Pavilions, and on-demand retail and instant delivery service under JD NOW. These innovations attracted significant attention and reinforced JD.com’s leadership in advancing the digital transformation of supply chains.
(vivian.yang@jd.com)
JDDJ and The J Shop Join Hands with HLA
