By Lei Jianping
The science and Technology Innovation Board yesterday announced the termination of the decision to review the IPO of Jingdong Digital Technology Holding Co., Ltd. and its listing on the science and technology innovation board.
On March 30, 2021, Jingdong Digital Technology Co., Ltd. submitted the application of Jingdong Digital Technology Holding Co., Ltd. for withdrawing the application documents for IPO and listing on the science and technology innovation board (Jingdong Digital Technology Co., Ltd. No. 03-001, 2021) to the science and technology innovation board, and applied to withdraw the application documents.
According to the relevant provisions of Article 67 of the rules for examination and approval of the issuance and listing of shares on the science and Technology Innovation Board of Shanghai Stock Exchange, the science and technology innovation board has decided to terminate the examination and approval of the initial public offering of shares of Jingdong Shuke and its listing on the science and technology innovation board.
Analysis shows that it is inevitable for Jingdong Digital Technology Co., Ltd. to withdraw its application for listing on the science and technology innovation board. On the one hand, great changes have taken place in the domestic financial policy after the listing of ant group was blocked. On the other hand, the original Jingdong Digital Technology Co., Ltd. has been broken up and replaced by Jingdong Technology Co., Ltd., and great changes have taken place in its business.
Jingdong digital science once wanted to raise 20 billion yuan
Before IPO, Jingdong group controlled Suqian polymerization, a domestic enterprise, through its wholly foreign-owned enterprise Jiangsu Huiji agreement, and indirectly held 36.80% of the company's shares through Suqian polymerization, making it the largest shareholder.
Liu qiangdong, CEO of Jingdong group, directly holds 8.86% of the equity, indirectly controls 41.49% of the total equity of Jingdong digital technology before the issuance through pilot Fangyuan, Suqian polymerization and Boda Heneng, accounting for 50.35% of the total equity before the issuance, and controls 74.77% of the total voting rights through special voting arrangements.
Chen Shengqiang holds 4.23% and Sequoia Hongde 2.68%.
According to the prospectus, the revenue of JD digital in 2017, 2018 and 2019 is 9.07 billion yuan, 13.616 billion yuan and 18.203 billion yuan respectively; the revenue of JD digital in the first half of 2020 is 10.3 billion yuan.
In 2017, 2018 and 2019, the net profit of Jingdong Digital Technology Co., Ltd. was - 3.829 billion yuan, 128 million yuan and 770 million yuan; the net loss of Jingdong Digital Technology Co., Ltd. in the first half of 2020 was 680 million yuan.
However, since then, great changes have taken place in the domestic financial market policies, and the listing of ant group has also been blocked. After that, Jingdong Digital Technology Co., Ltd. has made a series of adjustments and changed its leadership.
Integrate into Jingdong technology, or re submit the application
In January 2021, after integrating cloud and AI business with Jingdong digital technology, Jingdong technology sub group (hereinafter referred to as Jingdong Technology) was established. Li Yayun, the former CEO of Jingdong digital technology, was appointed as the CEO of Jingdong technology sub group.
At that time, Jingdong group said that Jingdong technology was positioned as the most industry focused digital partner and was committed to providing full value chain product technology solutions for enterprises, financial institutions, governments and other customers.
The newly established Jingdong Technology Group integrates the technical service capabilities of Jingdong cloud and AI business and Jingdong digital technology. Based on the unified cloud base, relying on the cutting-edge technological capabilities of AI, data technology, Internet of things, blockchain and so on, it has created products and solutions for different industries.
For example, the modern platform of urban governance for digital city, the asset management technology and insurance technology for financial institutions, the digital marketing and intelligent customer service solutions for enterprise customers, etc.
Jingdong Technology Group has more than 10000 employees, of which more than 70% are R & D and professionals, and has a number of scientists selected into IEEE fellow.
In the overall strategic layout of Jingdong group, technology is positioned as the third growth curve after trading and services, and Jingdong technology will carry this mission and become the core business of providing technical services to the outside world.
In March 2021, Jingdong Group signed a final agreement to divest its cloud computing and artificial intelligence business to Jingdong Digital Technology Co., Ltd. the overall price of its cloud computing and artificial intelligence business is 15.7 billion yuan. After the completion of the transaction, the equity of Jingdong group in Jingdong Digital Technology Co., Ltd. will increase to about 42%.
Behind Jingdong group's integration of cloud and AI business with Jingdong digital technology into a new company, it also makes the new company more in line with the requirements of the science and technology innovation board, paving the way for the subsequent listing on the science and technology innovation board, or exploring other listing possibilities.
It is said that Jingdong Digital Technology Co., Ltd. may change its way to list on the Hong Kong stock exchange.