Bulletin: JD.com's Share Placement Signals Higher Investments In Logistics

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 30, 2022—JD.com's sizable investments in logistics operations will likely continue. JD Logistics Inc. (JDL), JD.com's 63.4%-owned subsidiary, recently announced its plan to raise up to US$1.1 billion through a share issuance. JD.com will invest approximately US$700 million, with about US$400 million coming from other investors. The China-based online e-commerce company has more than sufficient liquid assets (Chinese renminbi [RMB] 185 billion in cash and short-term investments at the end of 2021) on its balance sheet to fund the investments, and we expect the company to generate more than RMB5 billion in free operating cash flow in 2022. JD.com (BBB+/Positive/--) has been making large investments in logistics.

...HONG KONG (S&P Global Ratings) March 30, 2022--JD.com's sizable investments in logistics operations will likely continue. JD Logistics Inc. (JDL), JD.com's 63.4%-owned subsidiary, recently announced its plan to raise up to US$1.1 billion through a share issuance. JD.com will invest approximately US$700 million, with about US$400 million coming from other investors. The China-based online e-commerce company has more than sufficient liquid assets (Chinese renminbi [RMB] 185 billion in cash and short-term investments at the end of 2021) on its balance sheet to fund the investments, and we expect the company to generate more than RMB5 billion in free operating cash flow in 2022. JD.com (###+/Positive/--) has been making large investments in logistics. On March 11, 2022, JDL agreed to buy a 66.5% stake in Shanghai-based Deppon Logistics Co. Ltd. for about RMB9 billion. This followed JD.com's US$546 million incremental investment in Dada Nexus Ltd. (a provider of local on-demand delivery service),...

Bulletin