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Shares of Deppon Logistics surged to the maximum daily limit imposed by the exchange after the Chinese freight logistics company, owned by JD.com, announced plans to voluntarily withdraw from the stock market next month.
As of midday trading in Shanghai, Deppon [SHA: 603056] was up 10 percent at CNY15.44 (around USD2.21), following a two-day trading halt. JD Logistics will provide shareholders with CNY19 per share to privatize Deppon on February 6, which represents a premium of more than 35 percent over its closing price of CNY14.04 on January 9. This buyout values the company at over CNY19 billion (approximately USD2.7 billion), according to an announcement made yesterday.
JD Logistics acquired a 67 percent stake in Deppon in March 2022. Later that year, the company committed to resolving existing competition issues with Deppon within five years of the acquisition’s completion.
Industry analysts believe that maintaining Deppon as a public entity offers little advantage. Once delisted, Deppon can seamlessly integrate into JD Logistics’ core resources, without the constraints of disclosure requirements and the pressure of short-term profit targets faced by publicly traded companies.
Deppon posted a net loss of CNY276 million (about USD39.6 million) during the first three quarters of last year, contrasting with a net profit of CNY861 million in 2024. Transactions between Deppon and JD Logistics increased from CNY3.4 billion (around USD485.4 million) in 2023 to CNY5.8 billion in 2024, with projections suggesting this could reach CNY8.5 billion in 2025.
Originally focusing on less-than-truckload freight, Deppon became the first express logistics company in China to go public in 2018. It is expected to be the second Chinese courier to delist next month, after Aneng Logistics, which is traded on the Hong Kong Stock Exchange.
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