Sep 27, 2020|

JDD IPO Prospectus: Funds to Mainly Go Toward Technology Upgrades


By Martin Li

JD Digits (JDD) plans to use the funds it aims to raise in its upcoming IPO on the Science and Technology Innovation Board of the Shanghai Stock Exchange (STAR Market) to upgrade technologies.

Totaling 20.4 billion yuan (US$3 billion), the funds will be used to upgrade digital solutions for financial institutes, merchants, enterprises and emerging industries, build an open technology platform, expand a digital technology center, as well as supplement working capital, according to the prospectus.

More than 70% of the funds will be used for projects related to an upgrade of technology and digital services.

JDD is committed to developing services integrating technology, industry know-how and ecosystem building capabilities, to answer increasing demand for digitalization in the financial industry. The company calls the service model TIE, referring to technology, industry and eco-system.

“Digital transformation is at the core of future business models for financial institutions,” said Chen Shengqiang, CEO of JDD, at a forum in Shanghai in August. “It’s the foundation of strategy and business. The transformation requires digitalization of basic technology, applied technology, business and scenarios.”

“Digitalization can bring the financial industry and other industries closer, providing new growth scenarios for the financial industry and giving industries better access to financial services,” Chen said.

Currently JDD provides digital solutions to financial bodies, businesses and the government. In the first half of this year, the company registered a revenue of RMB 10.327 billion yuan, of which 41.48% came from financial bodies, 52.37% came from businesses and 5.57% from the government. The compound annual growth rate of business from financial bodies, and government businesses and other clients, exceeded 100% and 239% respectively.