Jingdong Logistics is the third subsidiary of Jingdong Group to carry out IPO, the other two are Jingdong Digital Technology, which submitted a prospectus in September 2020 on the Science and Technology Board, and Jingdong Health, which was listed in December 2020 on the Hong Kong Stock Exchange.
The first financing record for Jingdong Logistics since its independent operation in 2017 was in February 2018, with $2.5 billion invested by a number of organizations including Gao Tiles Capital, Sequoia China, China Merchants Group, Tencent, and others. The listing betting agreement behind this financing requires that Jingdong Logistics must complete its listing within three years, with a March 2021 deadline.
Now, Jingdong Logistics to the Hong Kong Stock Exchange to submit a prospectus application, although the step-by-step procedures, but also due to Jingdong Logistics' own achievements. Along the way, although has been topped with a loss hat, not as large as SF, but Jingdong Logistics always adhere to the original intention of providing customers with a better experience, and continue to promote its logistics layout, and constantly increase the application of technological research and development, and the development of the momentum has been not to be underestimated, the main fast, an increase, a decline in the characteristics of the. The reason for this, both Jingdong in the logistics industry layout early reasons, but also big data, artificial intelligence, cloud computing and other new technologies and new ideas are constantly playing an important role.
For logistics such a heavy asset industry, many Internet giants are deterred, because logistics warehousing, vehicles, personnel and other links need to invest a lot of money, once the funds appear liquidity risk, and even drag down the main business of the e-commerce. Jingdong logistics continuous losses for more than ten years, triggering the outside world have questioned, but Jingdong is not moved, bite the bullet, constantly optimize the operation, and constantly increase the technical services, in the big data, artificial intelligence, cloud computing and other new technologies, its logistics scale system is constantly strengthened.
Jingdong Logistics has established a highly synergistic six networks, which are warehouse network, integrated transportation network, distribution network, bulky network, cold chain network and cross-border network, and has operated more than 800 warehouses, with a total management area of about 20 million square meters (including the area managed by the cloud warehouse eco-platform) as of September 30, 2020, and has operated 28 warehouses in 18 cities across the country. "As of 2020, we have operated more than 800 warehouses with a total management area of about 20 million square meters (including the area managed by the cloud warehouse ecological platform), and 28 large-scale intelligent warehouses in 18 cities across the country (including one unmanned warehouse in Shanghai), covering almost all regions, towns and populations in China.
The accumulation of soil into a mountain, the wind and rain will rise; the accumulation of water into the abyss, the dragon will be born. It is on the basis of such a logistics scale, Jingdong has the ability to deepen the service backbone. In the prospectus, jingdong logistics will position itself as "China's largest integrated supply chain logistics service provider", so as to differentiate competition with peers to form positioning, in the specific business implementation of "warehouse and distribution of integrated services", and strive to warehousing and distribution services, bulky goods logistics services, large items logistics services, storage and distribution services, logistics services, logistics services, logistics services, logistics services, logistics services, logistics services, logistics services, logistics services, logistics services, logistics services and logistics services. In the specific business, we implement "warehouse and distribution integrated services" and strive to provide customers with integrated supply chain logistics services in warehousing and distribution services, bulky goods logistics services, logistics technology services and other businesses.
From the actual performance point of view, Jingdong Logistics is trying to move forward in the direction of its positioning. From the third quarter of 2020 single-quarter comparison, the market capitalization of 500 billion above the SF Express business revenue scale is three times more than the Jingdong Logistics, but in terms of growth rate, the market capitalization of 50 billion below the Jingdong Logistics and other services revenue growth rate of 73%, far more than the 34.04% of SF.
As early as the beginning of the reform and opening up, it was pointed out: science and technology is the first productive force. Undeniably, Jingdong Logistics revenue growth rate, but also thanks to its logistics technology concept of continuous innovation.
At the Jingdong Global Science and Technology Explorers Conference held in November 2020, Jingdong explained for the first time to the public the new concept of "Jingdong Digital Intelligent Social Supply Chain", which will connect and optimize the various aspects of social production, circulation, and service with digital intelligence technology, aiming to build a new type of infrastructure, and reduce social costs and improve the quality of social services through its own digitalization capabilities.
This new concept will connect and optimize all aspects of social production, distribution, and service with digital technology, aiming to build a new infrastructure, reduce social costs and improve the operational efficiency of all sectors of society through its own digital capabilities.
Previously, Jingdong Logistics vigorously advocated and practiced the concept of "5G Intelligent Logistics Park", and with 5G innovative technology in Beijing Asia One was the first to be built, with its high intelligence, self-decision-making, integration, to promote the one-person interconnectivity of all people, machines, vehicles, and equipments, including auto-driving, auto-sorting, and auto-patrol inspection, The overall scheduling and management of human-machine interaction, not only builds a typical application scenario of 5G technology in intelligent logistics, but also significantly improves the operational efficiency of express delivery, and the customer's feeling is that Jingdong Logistics is "faster and better", and this experience allows Jingdong Logistics to harvest many repeat customers, its own This experience allows Jingdong Logistics to gain many repeat customers, and its own "private flow" can be consolidated and continue to expand, and promote its revenue growth.
Taste the sweetness of technology Jingdong Logistics did not stop, January 26, 2021, Jingdong Logistics RFID intelligent warehousing solutions in Chongqing Yubei large automated warehouse full application, after the technology will be in the Asia One, including hundreds of large warehouses to promote the application. This marks the Jingdong Logistics in the "simple to harness complexity" concept under the guidance of the large warehousing automation field to achieve a new breakthrough, can make the warehouse inventory efficiency by more than 10 times, review efficiency by more than 5 times, the overall effectiveness of warehouse operations will increase by 300%, from the previous "people waiting for the courier
The breakthroughs in warehouse inventory efficiency will increase more than 10 times, review efficiency will increase more than 5 times, the overall efficiency of warehouse operations will increase by 300%, from the previous "people waiting for the courier" to the current "courier waiting for the people", this operational efficiency will further improve the growth rate of revenue.
As early as 2019, before submitting the prospectus, Jingdong Logistics formally put forward the "supply chain industry platform (OPDS)", providing integrated supply chain services for industries with different attributes, and actively promoting the digital transformation of the supply chain to the industry and technological empowerment. 2020, Jingdong founder Liu Qiangdong in the beginning of the year. In early 2020, Liu Qiangdong, the founder of Jingdong, redefined the Jingdong Group in an internal letter, that is, from "retail-based technology service company" to "supply chain-based technology and service enterprises", which can be seen in the strategic position of technology services in Jingdong.
On this basis, in January 2021, Jingdong released the "Technology Reconstruction of the Social Supply Chain - Future Technology Trends White Paper", which can be seen as its overall planning and strategic foresight for the future of logistics: in the next ten years, AI, Internet of Things (IoT), Blockchain, Autonomous Systems, and Next-Generation Computing will be the driving force for the 5D attributes, i.e., Deep Tech, Deep Technology, and Next-Generation Computing. Technology), Deep Connectivity (Deep Link), Deep Data (Deep Data), Deep Intelligence (Deep Intelligence) and Deep Purposes (Deep Purposes) to realize the key technologies, in these five key technologies, Jingdong will use the influence of digitalization and intelligence to comprehensively radiate the entire social development from the industrial side In addition, by connecting digital and intelligent technologies and industries, it will open up all links in the supply chain of production, circulation and service, and build a digital and intelligent social supply chain network.
Overall, in the 11 quarters from 2018 to the third quarter of 2020, the cumulative technology investment of Jingdong Logistics reached 4.6 billion, with an average share of 3.4% in total revenue, which is not only ahead of peers, but also shows a trend of continuous growth in its technology investment.
In terms of technological innovation, as of December 31, 2020, Jingdong Logistics has owned more than 4,400 patents and computer software copyrights (including applications in progress), of which more than 2,500 are related to automation and unmanned technology, which are widely involved in the entire logistics chain of warehousing, sorting, transportation, distribution, customer service, etc., and include artificial intelligence, deep learning, self-driving, formation operation, visual analysis, voice interaction, etc., which have been used in the logistics industry. Analysis, voice interaction, etc., has been applied in large numbers. 2021, Jingdong Logistics relied on the self-developed unmanned warehouse algorithm application, shortlisted for the Franz Erdmann Award, the highest award for global algorithm application.
In terms of technology practice, BOE Logistics supports customers' supply chain digitization with its own Warehouse Management System (WMS), Transportation Management System (TMS) and Order Management System (OMS). Jingdong Logistics has the first full-process unmanned warehouse and the first 5G logistics park, has realized the large-scale landing of express robots, and operates 28 "Asia One" intelligent logistics parks, fully demonstrating its "intelligent logistics" Jingdong characteristics. Such as its latest construction of Zhengzhou Asia One, relying on 5G, Internet of Things, artificial intelligence, intelligent equipment and other technologies, sorting efficiency has achieved a five-fold increase in the average daily volume of orders handled up to a million level. Since 2016, Jingdong Logistics has gradually completed the three-step route of intelligent express vehicles in closed parks, socialized roads, and large-scale group operations, constantly refreshing the new logistics experience of customers. During the 2020 epidemic, Jingdong's invisible advantages in supply chain and logistics were rapidly amplified, allowing it to quickly mobilize supplies nationwide and distribute them to the front line at the first time. This is the short board of peers, but the biggest moat of Jingdong Logistics.
One cannot be a forest. Jingdong Logistics understands this, in addition to constantly deepening its own technical attributes, Jingdong Logistics also focuses on cultivating helpers, carry "allies", in the technology empowered the entire supply chain at the same time, Jingdong Logistics and China and the global industry partners, to build a synergistic *** born of the open supply chain solutions platform for multimodal transportation, Last-mile delivery, warehousing, cross-border and cold chain services on the ability to complement each other to meet customer demand.
In January 2018, Jingdong led the 60 million yuan Series A financing of Malu Innovation, an intelligent warehousing solution provider, which has been y engaged in the research and development of the underlying technology and core modules of robotics, AI, big data, and algorithmic IoT since its inception in 2015, and has launched a number of AMR/AMR products and software systems, which have strongly contributed to the Jingdong Logistics' supply chain deepening. At the same time, Jingdong invested in the "short-distance delivery crowdsourcing platform + instant retail" is also outstanding. In these "little brother" to help support, Jingdong Logistics impact on the stock market more confidence.
In addition, Jingdong Logistics innovatively launched the cloud warehouse model, its own management system, planning capabilities, operating standards, industry experience in the cloud open, so that other small and medium-sized logistics enterprises can also fully enjoy the technology, standards and brand of Jingdong Logistics, to enhance their own service capabilities. As of December 31, 2020, Jingdong Logistics has operated more than 1,400 cloud warehouses, and in terms of international logistics services, through cooperation with international and local partners, Jingdong Logistics has reached more than 220 countries and regions. This open technology mindset has built a logistics ecosystem with Jingdong's characteristics, which not only promotes its own influence, but also accelerates the continuous spread of its supply chain coverage.
At present, Jingdong's digital intelligent social supply chain has achieved initial application results in retail, health, logistics, finance, and urban five major scenes of technological empowerment. In the field of health, the digital intelligent social medical health supply chain has effectively linked the pharmaceutical supply chain, Internet healthcare, health management, intelligent medical and other business sectors.
In recent years, despite the fact that some logistics companies have successively increased their technological investment, Jingdong Logistics has an even more obvious advantage because of its earlier layout and greater investment in technology and capital. Based on the underlying technologies of 5G, artificial intelligence, big data, cloud computing and the Internet of Things, Jingdong Logistics is continuing to improve its capabilities in automation, digitization and intelligence. On the one hand, it greatly improves its efficiency in warehousing, transportation, sorting and distribution through automated handling robots, sorting robots, intelligent express vehicles, etc. On the other hand, it also independently researches and develops warehousing, transportation and order management systems. On the other hand, it has also independently developed warehousing, transportation and order management systems to support the comprehensive digitization of the customer supply chain. Jingdong Logistics through the "intelligent brain", in the sales forecast, commodity distribution planning and supply chain network optimization and other areas to achieve decision-making, improve operational efficiency, reduce logistics costs, enhance customer experience.
The degree of attention and investment in technology by Jingdong is one of the important reasons why the loss of Jingdong Logistics appears to be pressed off a cliff.2020 the first three quarters of the net loss generated by Jingdong Logistics was 11.7 million yuan, while the net loss generated in 2018, 2019 full year was 2.8 billion yuan and 2.2 billion yuan, respectively. From more than two billion to 10 million out, this kind of cliff decline also makes Jingdong Logistics further recognize the great role of new technology.
Although some analysts believe that the Jingdong Logistics loss reduction is due to the Jingdong employee welfare expenditure accounted for a year-on-year reduction, the relevant data pointed out that the cost of this item in 2018 accounted for 45.1%, in 2019 accounted for 39.5%, and in 2020 the first three quarters accounted for 36.1%, in addition to a large number of external orders brought about by the influx of "flywheel effect In addition, there is a large influx of external orders brought about by the "flywheel effect", all of which can reduce costs and reduce losses.
However, Jingdong Logistics still insists on strong operational efficiency and excellent service quality through logistics network optimization and technology-driven, bringing great efficiency improvement to customers' supply chain operations, such as accelerating inventory turnover, reducing delivery time, and at the same time, helping customers achieve business growth by providing sales forecasts and other intelligent decisions. Over the past 10 years, while helping Jingdong Group serve more than 400 million consumers, Jingdong Logistics has reduced the inventory turnover days of millions of self-owned SKUs to 34 days through more than 800 warehouses, reduced the fulfillment cost rate to 6.5%, and about 90% of Jingdong's online retail orders have been able to achieve same-day and next-day delivery, creating the best case of global logistics technology innovation. In the view of Jingdong Logistics, this kind of technical services around the customer is also one of the reasons for its loss reduction.
According to the prospectus submitted by Jingdong Logistics this time, in terms of technology investment, Jingdong Logistics will continue to strengthen the long-term competitiveness of technology, including hardware, software and algorithms, as well as the application of 5G, cloud computing, Internet of Things and other basic technologies. Among them, intelligence is the main development direction of Jingdong Logistics in the future, including unmanned warehouses, unmanned aircraft, unmanned vehicles, intelligent delivery robots, etc., with the intention of further solving the pain points of the logistics industry through the perspective of technology, improving the overall efficiency of distribution, and reducing logistics costs.
Jack Ma, who was skeptical of self-built logistics, once said that the Internet is not only a technology, but also a value. Now, Jingdong Logistics seems to realize this sentence faster, in the Internet technology and concepts, not only to the outside world to prove that self-built logistics is feasible, but also let the logistics of more than a decade of Jingdong people feel gratified. In the future, with the vigorous development of technology, Jingdong Logistics will provide the public with a more intelligent, automatic and convenient logistics, unmanned warehouses, unmanned vehicles, drones and other intelligent logistics system will be more y and comprehensively integrated into the public life.
Article: Zhao Changchun / Data Ape