(Yicai Global) Aug. 13 -- Chinese e-commerce colossus JD.Com will join with Zhejiang Zhenyuan Pharmaceutical to build a leading regional smart pharmaceutical logistics and warehousing center in Zhejiang province in southeastern China.
The two recently signed a corresponding partnership framework agreement, Zhejiang Zhenyuan announced.
The parties will set up the joint venture for JD.Com's warehouse in the southeastern economic powerhouse province using the logistics assets of Zhejiang Zhenyuan. JD.Com will complete its due diligence and capital injection within six months to become the controlling shareholder in the JV, per the announcement.
JD.Com will also help Zhejiang Zhenyuan scale up its warehousing and logistics, business-to-business, business-to-consumer and online-to-offline capacity by leveraging its e-commerce management technologies.
The partners will further collaborate in commercial logistics based on value supply chain projects and will operate with independent cost accounting and revenue sharing, the announcement stated.
Their partnership will combine the geographical advantages of Zhejiang Zhenyuan with Beijing-headquartered JD.Com's smart logistics technologies, integrate their existing warehousing, transport and distribution resources, and undertake third-party pharma logistics services, the announcement said.
JD.Com has gradually scaled up its efforts in this field in recent years, and this year plans to build smart distribution centers for medications in seven major regions of China, including Beijing, Shaanxi, Jiangsu and Guangdong in addition to Zhejiang, the announcement related.
Editor: Ben Armour