Shares in Chinese Logistics Player Surge After JD.Com Tie-Up
Tang Shihua
DATE:  May 14 2019
/ SOURCE:  yicai
Shares in Chinese Logistics Player Surge After JD.Com Tie-Up Shares in Chinese Logistics Player Surge After JD.Com Tie-Up

(Yicai Global) May 14 -- Shares in Xinning Modern Logistics rose by the  maximum 10 percent daily limit today after it joined forces with the  delivery arm of JD.Com to develop an Internet of Vehicles management  platform as part of the Chinese e-commerce giant's efforts to connect  200,000 vehicles by 2020.

Jingbangda Trading, known as JD Logistics will work with the Xinning to boost  operational efficiency through the platform with the long-term goal of  connecting two million vehicles, according to a statement from the  Beijing-based company. The Jiangsu province-based firm's stock price  [SHE:300013] rose 10.01 percent to CNY16.70 (USD2.44) today. 

JD.Com will spend CNY104 million (USD15.1 million) to buy a 10 percent share  in the of the company as part of the agreement. Xinning provides  third-party comprehensive logistics services and stores electronic  components at bonded warehouses. 

The two parties will utilize technologies such as logistics sensors, big data  and intelligent algorithms to build a unified big data platform through  which both vehicles and goods are connected to the network to boost  resource matching, enhance vehicle efficiency and optimize operating  costs. The pair will also explore new markets together.

Xinning will plan, design, operate and manage the IoV platform and develop  products while JD Logistics will handle commercial interfaces including  the installation of networks and equipment.

The two parties also aim to discuss and cooperate on areas such as  intelligent storage supply chain technology, cold chain logistics and  cross-border e-commerce, with the aim of greatly reducing inventory and  forming an optimization solution for the supply chain.

The pair will also explore cooperation in innovative areas such as the  commercial application of the fifth-generation networks, smart  transportation, mining and the application of logistics big data, cloud  services and storage planning. 

Editor: William Clegg

Follow Yicai Global on
Keywords:   R&D,IToV,Logistic Service,Xinning Modern Logistics,JD.Com