JD to monetize logistics assets – China Daily
What happened: JD will establish a logistics assets management company with the aim of monetizing its logistics assets, including 2.5 million square meters of warehouse space. The announcement was made by Sidney Huang, the chief financial officer of JD, in a conference call.
Why it’s important: Competition between JD and its rival is increasing. Alibaba has announced ambitious plans for its logistics division to bring even quicker delivery services to consumers in China and the rest of the world. JD’s move also comes after it announced a marked decrease in year-on-year profit and an increase in expenses. The company put this down to investing in technology through research and development. However, it is now looking to make up its losses using already available assets.