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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.

 

(bjlihao3@jd.com)

 

 

JD Launches Livestream Base in Xi’an

by Ling Cao

JD has launched a livestream base in Xi’an, focused on helping traditional enterprises and local merchants go digital. The announcement was made on September 25th, concurrently with the news of the formation of the short-video e-commerce livestream committee of the Shaanxi E-commerce Industry Association.

The function of this base is to create a concentrated hub of livestream resources, including enterprise resources, livestream talent and more. JD has also kicked off a livestream contest which will last from September 25th to October 30th. Ahead of the contest, JD will invite livestream coaches to train 100 shortlisted contestants.

Sixteen MCN (Mutli-Channel Network, meaning organizations that work with video platforms to offer various forms of support to a channel owner) from media and companies have already cooperated with livestream base.

A representative from the program at JD Cloud & AI said, “In order to accelerate traditional enterprises getting up and running with digital development, the livestream base will combine JD’s resources and technology advantages to foster diversified development.”

 

(ling.cao@jd.com)

A Naughty Boy, Several Dead Crabs, and JD Fresh

by Vivian Yang

Ahead of the Mid-Autumn Festival, Beijing resident Mr. Liu ordered more than ten hairy crabs from JD.com on Sept 22nd. A few hours after receiving the order, he discovered that several of the crabs were dead. He immediately reported this to JD, and received the standard double refund within a day. Case closed, right? Not so fast. Mr. Liu discovered later that it was actually his six-year-old son who was the crab-tampering culprit.

On the day when the order arrived at home, Mr. Liu placed the crabs in a basin covered by a piece of cardboard so the crabs could not run away. He then answered an important phone call in another room. When Mr. Liu returned to check the basin, he peeked into the basin and noticed that several of the crabs were dead.

Mr. Liu immediately called JD – according to the company’s fresh crab delivery promise, customers are eligible to receive a double refund for each dead crab received during the Mid-Autumn Festival. His request was quickly processed to his satisfaction.

It was not until the next day when Mr. Liu was doing a casual review of his home monitor video that he discovered that his six-year-old son had facilitated the crabs’ “prison break”, going so far as to tie small ropes to the crabs in an attempt to walk them like dogs, and pretended to battle the crabs. During the “play” session, several of the crabs died.

When Mr. Liu returned from his phone call, his son was too scared to admit what had happened. It was only the next day when the boy was confronted with the video that he admitted what had actually happened.

Mr. Liu called JD’s customer services at once, and apologized for previous wrong complaint. He insisted on returning the refund.

“If it hadn’t been for the monitor video, I wouldn’t have known what really had happened at my home,” Mr. Liu said.  “I felt embarrassed for requesting a refund.”

 

(vivian.yang@jd.com)

JD Digits Prospectus: Long-Term Commitment to CSR

by Ling Cao

According to JD Digits (JDD)’ prospectus for its planned IPO on the Science and Technology Innovation Board of the Shanghai Stock Exchange, JDD concentrates on creating long-term value for the society, in order to promote sustainable development. JD’s social responsibility concept is focused around four words: digital, inclusive, innovation and connection.

During the epidemic, JDD provided free robotics support for 302 medical institutions, local government and municipal organizations. JDD will also open this technology to benefit more small and medium companies.

“We don’t plan on manufacturing robots. Our strategy is to establish the technology infrastructure and platform so third parties can build their own robots as quickly as possible,” said Cao Peng, vice president and head of AI technology and robotics at JDD.

JDD has also donated over 700 contactless smart cashing machines for over 200 supermarkets or convenience stores in Hubei and Zhejiang provinces to use, which can improve safety and efficiency. JDD has also worked with some of charity foundations to provide medical supplies to Hubei province.

JDD has leveraged its capabilities in technology, finance and supply chain  for small and micro enterprises with smart farming, helping them get through the pandemic.

JDD has also leveraged AI and big data to provide smart transportation and environmental protection solutions, covering atmosphere, water, soil, noise and solid waste. All steps in the process can be integrated and traced. For example, by analyzing shared bikes tracing information, as well as on the spot research, JDD can help local governments develop more a more efficient bicycle lane layout, increasing safety and improving traffic flow.

The company also leverages technology to optimize efficiency in the energy industry. Powered by AI, JDD can help factories increase the boiler thermal efficiency of a thermal power unit, thus saving coal consumption and pollution control costs. The solution has applied for 14 invention patents, and earned the 30 Best AI Use Case of the Year award from 2019 Synced Machine Intelligence Awards.

Dr. Xianyuan Zhan, a data scientist at JDD said, “The experience gained from the AI powered thermal power program may be used in other energy and more complex industrial situations, creating more value for the society.”

 

(ling.cao@jd.com)

Posted in ESG

JD Health Offers Integrated Online-Offline Psychiatric Services

by Hui Zhang

JD Health reviewed its journey of setting up a closed loop of online and offline psychiatric services, at the 18th National Psychiatric Conference of the Chinese Medical Association (CMA) and the 14th National Conference on Child and Adolescent Psychiatry held in Guangzhou last week.

Accessible services

Since the start of the pandemic, JD Health has been exploring “online+” psychiatric services. JD Health helped Peking University Sixth Hospital, the Affiliated Brain Hospital of Guangzhou Medical University, Tianjin Mental Health Center, and CMA to set up consultation platforms. The platforms provide frontline medical staff and patients with online psychological assistance and counseling services to help them alleviate anxiety brought on by long hours working in a high-stress environment.

JD Health has also organized psychiatric experts to provide psychological counseling during the outbreak. The live-streams are free to the public to help reduce their anxiety related to the epidemic.

In addition to online consultations and knowledge sharing through livestreams, JD Health also reserved a special space in JD’s App to make it easy for JD’s consumers to access psychological consultations. JD Health also worked with enterprises to provide health tips and psychiatric assistance to their employees.

Construct Online-Hospital

JD Health has leveraged its advantages in big data, AI, smart supply chain and financial services to help hospitals and medical institutions, such as Tianjin Mental Health Center and the Affiliated Brain Hospital of Guangzhou Medical University, to transition online.

Online medical services make it easy for patients to receive follow-up treatments and purchase medicine online, and also contributes to disease prevention. For disease prevention, JD Health partnered with hospitals to develop WeChat mini-programs to provide free physical examinations to local residents so as to ensure early detection and early treatment. Meanwhile, JD Health leveraged its AI technology to customize wearable devices in order to trace patients’ wellness and integrate data with that from hospitals.

According to official data, the proportion of people with unhealthy mental conditions has reached 1/3 of the global population.

 

(zhanghui36@jd.com)

Photo Gallery: This Week at JD (September 21-September 25)

JD and P&G Beauty have officially launched a plastic bottle recycling program this week,

JD and P&G Beauty have officially launched a plastic bottle recycling program this week, encouraging customers to use recycling delivery boxes and participate in charity donation programs. Through the program, customers in Shanghai and Guangzhou who buy P&G’s hair care products will receive their products in JD’s reusable “green box”. Customers can then pack their own empty plastic bottles in the box. The materials will be professionally processed to make artificial grass lawn playgrounds for schools.

 

JD Health launched its General Medicine Center

JD Health launched its General Medicine Center on September 23rd. Prof. Xiaosong Yu, director of the general medicine branch of Chinese Medical Association was invited to be the chief physician of the center. He will be joined by over 20 other renowned doctors, who will work together through telemedicine to support more patients and contribute to the cultivation of more general practitioners in China.

 

AMI PARIS, a stylish fashion brand inspired by the city of Paris, opened a flagship store on JD.com

AMI PARIS, a stylish fashion brand inspired by the city of Paris, opened a flagship store on JD.com on September 23rd. In addition to its classic collection, the brand will introduce its new fall/winter collection through the flagship store.

 

Leading Italian brand Pirelli will bring high quality tire products to consumers in China through JD’s e-commerce platform

Leading Italian brand Pirelli will bring high quality tire products to consumers in China through JD’s e-commerce platform. The two parties simultaneously announced the release of a Consumer-to-Manufacturer (C2M) summer tire product, the P5 Touring, available exclusively on JD, as well as the exclusive sales debut in China of Pirelli’s high performance tire, the Ice Zero FR.

 

JD and Nanton city in Jiangsu province revealed China’s first modern governance command center

On September 22nd, JD and Nanton city in Jiangsu province revealed China’s first modern governance command center which is based on intelligent city operating system developed by JD Digits. The command center can realize digital city management, enabling precise transportation forecast, intelligent monitoring for hazardous chemicals, environmental conditions monitoring and more, in addition to providing visual reports to manage the city.

 

JD Central has become the exclusive dealer for the first batch of Xiaomi’s latest smartphone POCO X3 NFC in Thailand.

JD Central has become the exclusive dealer for the first batch of Xiaomi’s latest smartphone POCO X3 NFC in Thailand. The exclusive collaboration is part of a campaign celebrating JD Central’s two-year anniversary, which is on September 28th.

 

JD’s Mini Storage warehouse service launched a special charity project for people who suffer from Alzheimer’s disease

JD’s Mini Storage warehouse service launched a special charity project for people who suffer from Alzheimer’s disease, on the 27th World Alzheimer’s Day on September 21st. Through the initiative, Alzheimer’s patients and their relatives can keep their belongings in JD’s warehouses for one year for free.

 

JD and China Telecom will deepen ongoing cooperation in sharing supply chain resources

JD and China Telecom will deepen ongoing cooperation in sharing supply chain resources, building a procurement data system and ensuring emergency supplies during disaster conditions, based on a work meeting on September 21st. Additionally, the two companies will explore cooperation in standardization of industrial products and standard management.

 

JD Super, JD's supermarket, announced its cooperation with China Alcoholic Drinks Association

On September 21st, JD Super, JD’s supermarket, announced its cooperation with China Alcoholic Drinks Association to drive digitalized warehousing and logistics services in the wine industry, as well as promote quality wine brands.

 

3M Opens Flagship Store On JD

by Martin Li

American industrial products giant 3M has opened a flagship store on the JD MRO e-commerce platform.

JD MRO is JD’s B2B subsidiary for industrial maintenance, repair and operations (MRO) products and services.

3M’s online store on JD MRO is aimed at providing enterprises with an efficient procurement channel for industrial products by combining 3M’s quality supplies and JD’s experience in e-commerce operations and understanding of enterprise consumers. JD will use its advantages to help 3M to display its industrial products online to increase selection and procurement efficiency for enterprise customers.

“We chose to cooperate with JD MRO for its technology, resource and experience in the digitalization of industrial products, all of which are expected to provide strong support for the digital transformation of 3M’s channel. In the future, we will continue deepening our cooperation with JD MRO to explore smart procurement solutions, with an aim to better serve consumers,” said Yang Tong, director of 3M’s industrial product channel for Greater China.

3M has developed more than 60,000 products in the past over 100 years, becoming a household name in China. Each year it unveils several hundreds of new products.

The companies signed a cooperation agreement at the 22nd China International Industrial Fair in Shanghai earlier this month.

During the fair, JD also signed a cooperation deal with Linde (China) Forklift Truck Corp., Ltd, subsidiary of KION Group, which is a leading global manufacturer of forklift trucks and warehouse trucks, and a solutions and services provider for intralogistics.

JD and Linde will deepen cooperation in business-to-manufacturing model and online-to-offline integration.

 

(bjlihao3@jd.com)

 

JD’s Buyers Ensure Consumers Enjoy Quality Mooncakes in Mid-Autumn Festival, One Gains 20lbs by Trial Tasting

by Rachel Liu

Mooncakes are essential snacks for Chinese consumers during the Mid-Autumn Festival, a traditional festival for family reunion. However, the mooncake-making industry in China is not standardized. For example, some bakery and confectionary choose nearly expired flour to make mooncakes, or use artificial ingredients to replace high-quality ones. JD’s buyers ensure that consumers can buy high-quality mooncakes on JD with peace of mind.

“Although the government has very high standards about the quality and proportion of mooncake ingredients, many factories are still finding opportunities to lower the cost by using low-quality ingredients,” said Shuai Feng, one of the mooncake buyers from JD.  “Hygiene is also a big issue for the industry. Our job is to select high quality and tasty mooncakes for our customers.” Feng and other buyers personally taste the mooncakes to ensure quality, and some of them gained over 10kg in a single month as a result.

Half a year before the Mid-Autumn Festival, Feng and his colleagues started to visit the mooncake brands to identify reliable sources for the mooncakes on JD. Before selling on JD, each brand needs to meet a complete set of criteria. JD’s quality control department will also strictly inspect the production process to ensure the quality of each mooncake.

In its commitment to ultimate satisfaction, JD allows its customers to return the mooncakes that they are not satisfied. The returned products will not be sold to another customer, even if they don’t look like they have been tampered with.

Sales of mooncakes on JD have surged in the last few months. From July 21st to September 16th, sales of the Forbidden City themed mooncake gift box developed through JD’s Consumer-to-Manufacturer (C2M) initiative increased 143% YOY, and became the most popular mooncake gift box on JD. The Starbucks mooncake box also saw sales increase among young customers. “Customers not only care about the quality of mooncakes, but also the taste. We need to follow the trends closely and provide the most popular mooncakes to consumers,” said Feng.

To develop new products, the mooncake buyers spent a lot of time analyzing customer profiles and market trends. For example, sugar-free mooncakes, particularly suitable for people with diabetes and people on diet, received great popularity once launched. Feng also found that with the consumption upgrade, customers are not just looking for cheap products. Expensive, high-end mooncakes are chosen by more and more customers on JD.

 

(liuchang61@jd.com)