JD Logistics, the supply chain and logistics branch of Chinese e-commerce company JD.com, announced at the Hong Kong Stock Exchange (HKEx) on March 13 that it will acquire 99.99% equity in Ningbo Meishan Baoshui Area Deppon Investment Holding Company Limited for 8.976 billion yuan ($1.41 billion), accounting for a 66.49% stake in Shanghai-listed Deppon Logistics.
Earlier on March 11, Deppon announced that the two companies would carry out in-depth strategic cooperation in the fields of express delivery, cross-border, warehousing and supply chain. According to local media outlet Sina Tech, Cui Weixing, chairman of the company, made it clear at a internal meeting that the integration, layoffs and mergers circulated in the market would not happen, and that Deppon would continue to maintain the independent operation of its brand and team. In addition, Cui will continue to manage the company.
At the same time, Yui Yu, CEO of JD Logistics, clearly stated the principle of cooperation between the two companies at a previous internal management meeting: “Deppon will retain its brand and will be operated independently as an A-share listed company. JD Logistics will do its best to create more development opportunities for Deppon’s management and employees, helping it develop better.”
Deppon Logistics was established on August 6, 2009. It is a comprehensive logistics supplier linking express delivery, logistics, cross-border services, warehousing and supply chains, with over 30,000 business stores, 140 warehouses and over 2,000 trunk lines in China.
JD Logistics is a leading technology-driven supply chain solutions and logistics provider in China, serving over 300,000 enterprise customers. According to its financial report, the total revenue of JD Logistics in 2021 reached 104.7 billion yuan, of which the revenue of customers from the integrated supply chain reached 71.1 billion yuan, and the revenue of other customers, including express delivery, was about 33.6 billion yuan.
As of December 31, 2021, JD Logistics has over 1,300 warehouses and over 300,000 front-line employees in China. It has achieved same-day delivery and next-day delivery in 93% of districts and counties and 84% of townships across China.
Taking the layout of JD.com in the express logistics industry, it can be seen that the company has successively acquired Kuayue Express, controlled CNLP and Dada Group. Now it acquires Deppon Logistics, which means that JD.com is involved in air cargo, bulk delivery, on-demand delivery and overseas logistics.