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Shares of JD Logistics increased following the announcement that the Chinese logistics and supply chain solutions provider plans to acquire a domestic instant delivery company from its parent company, JD.com, for $270 million.
Earlier today, the stock surged as much as 4.5% in Hong Kong trading, before closing up 3.5% at HKD 12.99 (approximately USD 1.67) per share. The parent company’s shares remained relatively stable, ending at HKD 135.70 (about USD 17.44).
JD Logistics will acquire all of JD.com’s wholly owned subsidiaries, Dajiang and Dasheng, based in Beijing. This transaction is considered a related-party deal since JD.com owns 63% of JD Logistics. The acquired businesses are part of JD.com’s on-demand delivery platform, Dada Nexus, which was delisted from Nasdaq in June after being taken private by JD.com. A source familiar with the matter indicated that Dada Nexus is a major player in China’s rapidly expanding on-demand retail and delivery industry, competing with companies like Meituan and Ele.me from Alibaba Group.
Meituan’s stock remained almost unchanged today, closing at HKD 103.60, while Alibaba’s shares fell 2.4% to HKD 173.30. In pre-market trading on the New York Stock Exchange, Alibaba’s American depositary shares were down 1.4%, trading at USD 178.52 around 8:39 a.m.
The company noted that acquiring Dajiang and Dasheng will enhance its range of solutions and services, complementing current offerings. This move aims to boost last-mile delivery capabilities, consolidate resources, improve fulfillment efficiency, and elevate overall user experience.
Since entering the takeout market earlier this year, JD’s instant delivery segment has experienced rapid growth, with daily orders reaching 25 million in the second quarter. This surge contributed to a nearly 200% increase in new business revenue compared to the previous year, according to its first-half earnings report.
The booming takeout sector has also prompted JD Logistics to hire full-time delivery drivers, emphasizing the sector’s significant commercial potential and future growth opportunities.
In the first half of the year, JD Logistics reported a 14% rise in net profit to approximately CNY 2.6 billion (about USD 365 million), driven by a 14% increase in revenue to CNY 98.5 billion (around USD 13.8 billion), as detailed in its earnings release.
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