BRIEF: JD Logistics to buy two on-demand local delivery units from parent

2618.HK
Impro Precision makes infrastructure

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

To subscribe to Bamboo Works weekly free newsletter, click here

, ,
, ,

Related Articles

RELATED ARTICLES

  1. SF Intra-City delivers packages intra-city
    NEWS WRAP: Strong demand for local deliveries drives SF Intra-City to record revenue
    9699.HK
  2. NEWS WRAP: JD Logistics revenue, profit accelerate on China market momentum
    2618.HK
  3. Despite stellar results, Mixue gets investor cold shoulder as delivery wars wind down
    2097.HK
  4. Qudian: A slow-motion privatization?
    QD.US
  5. Meituan drives to Brazil in search of growth, only to crash into Chinese rival DiDi
    3690.HK
  6. BRIEF: China Resources to re-domicile two Hong Kong-listed units
    1313.HK 2460.HK
Discover hidden China stock gems in our weekly newsletter

Follow us

Facebook Twitter Linkedin Weixin Weibo Youtube

Subscribe to Our Free eNewsletter

Subscribe

Check out our content with some of our syndication partners

factiva

Recent Articles

From classroom crackdowns to shifting cabin crews, China adapts to new realities

Vocational educator Hiducation has become one of the few education companies to test the waters in Hong Kong's booming IPO market. Are investors ready to welcome this group again after a bloody crackdown three years ago? And budget carrier Spring Air is rolling out the welcome mat for more senior flight attendants as old as 40. Are other Asian airlines like to follow this "air auntie" trend, and what's behind it?
601021.SHG