BRIEF: JD Logistics to buy two on-demand local delivery units from parent
Logistical services provider JD Logistics Inc. (2618.HK) said on Thursday it has agreed to buy two local on-demand delivery companies, Dasheng and Dajiang, from its parent, JD.com Inc. (JD.US; 9618.HK), for $270 million.
JD Logistics said the purchase will broaden its existing product mix and business footprint, and also strengthen its last-mile delivery capabilities. Dasheng and Dajiang recorded a combined net profit of 75.2 million yuan ($10.6 million) in the first half of this year, reversing a 161.2 million yuan loss in the year-ago period.
“In light of the performance of the target business in the past months, the company believes that there are business potential and opportunities for further business expansion in connection with the target business,” JD Logistics said.
JD Logistics’ stock rose 3.5% on Thursday after the announcement. The stock is up slightly this year.
By Doug Young
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