(Yicai Global) April 25 -- Chinese e-commerce giant JD.Com Inc. [NASDAQ:JD] has officially created the JD Logistics Group, which is expected to generate more than CNY100 billion (USD14.5 billion) in revenue over the next five years.
The online retailer announced the news on social media today. Wang Zhenhui, former senior vice president of JD.com and head of operations, will serve as the chief executive of the new group and report directly to Richard Liu, chairman and chief executive of JD.com.
JD Logistics will offer comprehensive supply chain solutions, including
It will also share online and offline resources with JD.com and roll out innovative financial and insurance products in partnership with JD Finance.
Over the next five years, JD Logistics will expand the size of its logistics center to more than 50 million square meters, set up a cross-region aviation logistics network, expand the size of its current refrigerated warehouses 15-fold, operate over 20 overseas warehouses and cover more than 100 countries and regions along the One Belt, One Road route. Its business-to-business grid will cover more than 300 cities and integrate with Dada's crowd-sourcing network to form the country's largest intercity distribution network. The continued improvement of these networks will help the logistics group become a leading provider of supply-chain solutions and technologies in China.
The creation of JD Logistics is not a split, JD.com said, adding that the new group will remain a wholly-owned subsidiary. The e-commerce platform remains open to further capital-market operations, it added, and doesn't rule out the possibility of an independent fundraising or floatation of JD Logistics in the future, though it has no plans to do so yet.