JD.com Establishes Technology Unit as Fifth Subsidiary

(Source: Zhihu)

Chinese e-commerce giant JD.com announced on Jan. 11 it is officially establishing JD Technology as an affiliate after integrating its cloud and AI business with JD Digital.

Former JD Digital CEO Li Yayun will serve as the CEO of JD Technology. Song Yang, the vice-president of JD.com will be responsible for the new unit’s marketing, branding and public relations.

The technology unit of JD will join the company’s other subsidiaries including JD Health, JD Logistics, JD Digits and JD Industries.

The parent company stated that the new entity will be dedicated to cooperation with digital partners and provide products and technical solutions using AI, data technology, internet of things (IoT) and blockchain to a range of customers including enterprises, financial institutions, and governments.

The unit has over 10,000 employees. More than 70% of them are research and development professionals and experts. Many are fellows from the Institute of Electrical and Electronics Engineers (IEEE).

In December 2020, JD.com began accelerating an ongoing adjustment of its personnel structure and related businesses, including to senior positions. Former CEO Chen Shengqiang was appointed as the vice-chairman and chief of staff. Meanwhile, JD’s chief compliance officer Li Yayun was appointed as the new CEO of the Digits unit.

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On Dec 30, the company announced that under the authorization of the board of directors, it would integrate its cloud and AI business into JD Digits, stating that the decision was made based on the rapidly changing industry environment and its own development strategy.

In mid-September this year, JD Digits submitted an IPO prospectus on the tech-heavy STAR Market, planning to raise 20 billion yuan and issue no more than 538 million shares, accounting for no less than 10% of the total equity after issuance.