#Chinese amazon jing dong upgrade

'Our costs and expenses will likely increase in the future as we expect to expand our logistics infrastructure, enhance our supply chain capabilities, develop and launch new solutions and service offerings, expand customer base in existing market and penetrate into new markets, and continue to invest and innovate in our technological platform,' the prospectus says. JDL isn't promising a quick path to profitability, instead focusing on improving its competitive position.

Chinese financial outlet Caixin reported Wednesday that Liu had ' in an internal email to delivery leg in mid 2019 that the financing could only support JD Logistics' operation for two years if the company kept losing money.' JDL's previous CEO, Wang Zhenhui, was ousted in December and replaced by Yu Rui, who had been the head of JD's Human Resources department. The company has previously been criticized by both commentators and JD CEO Richard Liu for bleeding cash. Net losses were about $340 million in 2019, and only $1.8 million over the first nine months of 2020. From 2019 to 2020, revenue for the first nine months of the year jumped 43.2%, from about $5.3 billion to about $7.6 billion. Revenue's rising quickly: It grew 31.6% between 20, from about $5.8 billion to about $7.7 billion. JDL doesn't make a profit, but the trend lines are good. And the company will be guided by data to 'gain a more comprehensive understanding of the sources of inefficiencies.' Its IPO prospectus mentions automated guided vehicles, autonomous mobile robots, sorting robots and self-driving vehicles, among other things, which will deliver 'critical improvements in speed, accuracy and productivity in all key logistical operations.' This includes a fully unmanned warehouse in Shanghai, already in operation. But it thinks that market is 'highly fragmented' and sees a chance to become the logistics firm to rule them all. The integrated supply chain logistics market involves everything from express and last-mile delivery, to trucking and warehousing, to add-on services such as home installation and after-sale services, according to JDL.

JDL expects Chinese logistics spending to reach nearly $3 trillion by 2025, the highest in the world, partly due to 'redundant logistics processes' that the company hopes to streamline.

#Chinese amazon jing dong upgrade

JDL plans to use the proceeds of the offering to broaden its warehouse network and trick them out with more 'smart' tech, strengthen its line-haul network, upgrade its cold-chain network to keep up with online demand for fresh foods and pharmaceuticals and bolster its cross-border network, partly because 'demands from Chinese consumers for foreign products continue to remain robust.' Its stated goal: 'To become the world's' - not just China's - 'most trusted supply chain solutions and logistics services provider.' It's already known for its logistics prowess many items delivered via JD allow buyers to specify the precise hour of doorstep delivery, so investors are unlikely to need a hard sell. JDL says it has over 800 warehouses and employs over 240,000 workers in delivery, warehouse and customer service roles. JD Health raised $3.5 billion in a Hong Kong IPO in December 2020 and JD Digits, its finance unit, is planning an IPO in Shanghai, although it has been reorganizing itself to avoid running afoul of regulators as Ant Financial did in the run-up to its planned public offering. Since 2017, it's made its services available to other companies besides parent JD and is betting that 'as supply chain demands become increasingly sophisticated, more companies are expected to outsource their supply chain operations to third parties that can provide comprehensive supply chain solutions and logistics services,' according to its offering prospectus. JDL is a spin-off that began as JD's in-house logistics department in 2007, with its operations consolidated into a wholly owned subsidiary in 2011. JD, listed on Nasdaq, is currently valued at over $160 billion. As the name suggests, JDL is the shipping and delivery arm of JD.com, China's second-largest ecommerce company after Alibaba.