(Yicai) Jan. 14 -- Shares of Deppon Logistics, the first express logistics provider to go public in China, jumped by their daily trading limit after the firm said it will voluntarily delist next month, going private so as to fully integrate with JD Logistics and eliminate overlapping services.

Deppon [SHA: 603056] jumped 10 percent to finish at CNY15.44 (USD2.21) per share in Shanghai today, following a two-day trading suspension. The stock has climbed 13 percent so far this month.

JD Logistics will pay investors CNY19 per share to take private Deppon on Feb. 6, a premium of more than 35 percent on the company’s closing price of CNY14.04 on Jan. 9, which gave it a market capitalization of over CNY19 billion (USD2.7 billion), Deppon announced yesterday.

JD Logistics bought a 67 percent stake in Shanghai-based Deppon in March 2022. Later that year, the courier arm of Chinese online retail giant JD.Com committed to resolving the issue of horizontal competition with Deppon within five years of its acquisition. The company listed eight years ago.

Deppon is the second Chinese courier set to exit the stock market next month. Aneng Logistics, which is traded in Hong Kong, has announced plans to delist on Feb. 9.

The benefits of keeping Deppon listed are limited, according to analysts. As a private company, it can be fully integrated with JD Logistics without being constrained by disclosure obligations or short-term profitability pressures, they pointed out.

Deppon reported a net loss of CNY276 million (USD39.6 million) for the first three quarters of last year, compared with a net profit of CNY861 million for 2024. Related party transactions between the firm and JD Logistics increased to CNY5.8 billion (USD832 million) in 2024 from CNY3.4 billion in 2023, and they are expected to have reached CNY8.5 billion last year.

Editor: Futura Costaglione