JD.com pours $54m into Chinese logistics firm Jiangsu Xinning for 10% stake

FILE PHOTO: Employees work at a JD.com logistic centre in Langfang, Hebei province, November 10, 2015. REUTERS/Jason Lee/File Photo

China’s e-commerce giant JD.com Inc has invested 376 million yuan ($34.6 million) into listed logistics firm Jiangsu Xinning Modern Logistics, according to a stock filing by the latter on Monday.

The investment will see JD.com taking up a 10 per cent stake in Xinning. In the filing, Xinning said it also formed a strategic partnership with JD.com’s logistic arm, JD Logistics, to develop a big data system that will boost efficiency and cut costs. The solution aims to reach 200,000 vehicles by 2020.

Established in 1997 and listed in 2009, Xinning provides logistics and supply chain services for the electronic information sector in the Yangtze River Delta region, especially in bonded warehousing.

As the second-largest Chinese e-commerce firm, JD.com had raised $2.5 billion for its logistics arm last February to further cement its position in online retail in China and other markets. Based on a Reuters report, the logistics arms will eventually be listed.

JD Logistics was last valued at $10.9 billion prior to the round, which was led by Hillhouse Capital, Sequoia China, China Merchants Group and Tencent Holdings as well as others. The capital is used to expand its last-mile efficiencies through the development of automation, drones and robotics.

Last year, it also invested about $114 million in Hong Kong-listed China Logistics Property Holdings (CLP) in exchange for a 10 per cent stake. In May 2018, it poured $306 million into ESR Cayman, a pan-Asia logistics real estate developer where both would explore collaboration in property development, fund management, and investments across the region.

In a move to expand its healthcare business, JD.com’s healthcare business is raising over $1 billion for its healthcare unit JD Health from investors including CPEChina Fund, CICC Capital and Baring Private Equity Asia.