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China’s e-commerce giant JD lists delivery departments

Employees inspect orders at JD.com’s delivery station at Y Yiz Zhuang in Beijing as the new coronavirus continues to spread.

Hillary Pan | CNBC

BEIJING — Chinese e-commerce giant JD.com Will list its logistics sector on Friday in a public offering in Hong Kong.

The vast network of warehouses and delivery personnel in this sector in China has given JD a competitive edge over its rivals. AlibabaThe Beijing-based company can deliver products to millions of customers the same day or the next day.

JD Logistics plans to raise $ 3.2 billion in its initial public offering. Stock pricing so 40.36 Hong Kong dollars Each is at the lower end of the expected range.

The listing of the unit will be the latest in the parent company’s series after JD.com itself is listed in New York and then completed its second listing in Hong Kong. The company’s health department JD Health listed in Hong Kong in December..

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JD Logistics Outlook

“Failure to secure a stable and dedicated workforce can lead to service interruptions and delays,” the company warned, noting the overall tightening of the labor market and rising wages.

Another risk is that it is highly dependent on the state of the parent company, JD.

JD Logistics wants to sell its shipping service to third parties. But so far, its revenue and business have been tied to JD, accounting for more than 50% of last year’s logistics revenue.

China’s e-commerce giant JD lists delivery departments

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