It's the right time to go public.

For JD Logistics, Inc. 's listing, the outside world is not surprised. As early as 2016-2017, after JD Logistics, Inc. launched the internal spin-off, there were expectations of his listing, but such voices were repeatedly refuted, so that JD Logistics, Inc. 's listing time was a mystery for a long time. The release of the listing table signal, can also be regarded as a clear response to the outside world. So why did JD Logistics, Inc. choose to go public at this point in time? To sum up, there are no more than two points:

First of all, the improvement of the external environment is conducive to JD Logistics, Inc. 's listing. On the one hand, driven by the epidemic, express companies such as JD Logistics, Inc. and SF Express, which are mainly directly operated, have accumulated a reputation during the epidemic and won more market opportunities. Listing at this time gives JD Logistics, Inc. more strength.

On the other hand, since January 2021, both international capital and domestic capital have accelerated the flow into the Hong Kong stock market. In the current Hong Kong stock market, companies with large market capitalization (such as Kuaishou Technology) are more likely to be favored by the capital market. JD Logistics, Inc., who is huge, chooses to list in Hong Kong at this time, which is obviously very beneficial to raise his valuation.

Secondly, JD Logistics, Inc. 's own fundamentals have been improved, which is also conducive to the positive evaluation of him by the outside world. In previous years, due to scale expansion and not yet opening up logistics business and other reasons, JD Logistics, Inc. fell into successive losses, but as JD Logistics, Inc. began to accelerate the service transformation and the completion of the scale expansion of its logistics infrastructure, JD Logistics, Inc. 's losses were gradually narrowed, and JD Logistics, Inc. 's fundamentals improved significantly.

According to the financial report, JD Logistics, Inc. 's external service income has risen from 29.9% in 2018 to 43.4% in the first three quarters of 2020, while the loss has narrowed from 2.8 billion yuan to 11.71 million yuan in the first three quarters of 2020. Gross profit margin rose from 2.9% in 2018 to 10.9% in the first three quarters of 2020, a full increase of 8 percentage points. These conditions have explained to the outside world the improvement of JD Logistics, Inc. 's own value, but also laid a good groundwork for its listing.

Where is JD Logistics, Inc. 's trump card?

Of course, from the point of view of JD Logistics, Inc. 's own conditions, after years of continuous investment, JD Logistics, Inc. has established his own competition barriers and moat in the field of logistics.

According to the current public data, JD Logistics, Inc. 's non-current assets are currently 24.2 billion yuan, compared with Shun Fung's fixed assets of Q3 in 2020, and a considerable part of them are aircraft serving timed parts, while Yunda Yuantong and other fixed assets do not exceed 10 billion yuan. From these data, it is not difficult to see that JD Logistics, Inc. has been in the forefront of the logistics industry in terms of asset scale.

The reason why JD Logistics, Inc. 's non-current assets can lead the industry is inseparable from its huge self-supporting warehousing network. According to the data of its prospectus, JD Logistics, Inc. currently has more than 800 self-operated warehouses, with a total warehouse area of 20 million square meters and its own land area of 11 million square meters. These warehouses allow JD.com to match the logistics tentacles of "dry warehouses". Deep into the county level and with its holding Dada, JD.com constitutes a solid moat in the field of logistics and distribution.

On the one hand, JD Logistics, Inc. has covered the entire logistics industry chain, it has also achieved the comparative advantage of the leading industry in giving full play to centralized scheduling and ensuring the timeliness of logistics, and has made an important contribution to ensuring the enhancement of the user experience of JD.com 's other retail business. For example, JD Logistics, Inc. has always been an effective guarantee for JD Health and JD.com 's retail user experience.

On the other hand, the warehousing logistics system established by JD.com has laid a good foundation for it to do supply chain logistics and transform social logistics enterprises. For example, JD.com, through its cloud warehouse technology, endows its own management model, planning capabilities, and operation standards to third-party warehouses, and effectively increases the utilization rate of idle warehouses by optimizing the resources of the warehouse. greatly improve the utilization efficiency of its warehousing and logistics. Overall, whether internal or external, JD Logistics, Inc. 's full coverage advantage in warehousing and distribution and other areas has become a trump card in his hands.

The real opponent is not SF.

In fact, JD Logistics, Inc. 's advantage in the field of supply chain has already been reflected in its financial report. According to the prospectus, JD Logistics, Inc. 's cumulative income in the first three quarters reached 49.5 billion yuan, including 79.1% of customers from the integrated supply chain. From this set of data, it is not difficult to see the important role of integrated supply chain logistics in its business. So, what on earth is integrated supply chain logistics?

The so-called integrated supply chain logistics means that in addition to providing conventional logistics services, logistics companies also provide new logistics distribution methods, including express delivery, vehicle service, and the last kilometer distribution, which is equivalent to meeting the "one-stop" logistics and distribution requirements of users, so how big is this market?

According to the data of Zhenshi Consulting, the market size of China's integrated supply chain logistics industry will reach 2 trillion yuan in 2020 and 3.2 trillion yuan by 2025. From this set of data, it is not difficult to see the huge imagination space of integrated supply chain logistics, which is the biggest difference between JD Logistics, Inc. and SF at the business level. Interestingly, it is Shunfeng that JD.com has been marked most for a long time, and the reason for this situation may have something to do with the fact that there are some similarities between the two.

First of all, both Shun Feng and JD Logistics, Inc. are famous for their high prescription. However, after careful comparison, we will find that the factors that constitute the high timeliness of the two are not the same. JD Logistics, Inc. 's high timeliness comes from its warehousing network throughout the country, while Shun Feng's high timeliness comes from its strong air transport capacity.

Secondly, among many domestic logistics enterprises, the two are the most similar in volume and scale. In terms of revenue scale, JD Logistics, Inc. 's revenue scale is second only to SF; in terms of volume, JD Logistics, Inc., with the latest valuation of US $40 billion, has become a logistics enterprise second only to SF among domestic logistics enterprises. It is not difficult to find that there is indeed a lot of overlap between the two.

However, from the perspective of JD Logistics, Inc. 's own layout, Shunfeng is obviously not the object it focuses on in the field of logistics. On the one hand, JD Logistics, Inc. 's direction of socialized logistics is oriented towards a larger logistics market, and JD Logistics, Inc. obviously has a bigger plan than the competition with Shun Feng; on the other hand, from a technical point of view, JD Logistics, Inc. 's current advantages in logistics technology make it pay more attention to the potential of external technology empowerment in the later stage, and the potential of infrastructure is obviously greater than doing logistics business directly.

Start the logistics competition in the second half

From the perspective of the whole industry, the current enterprises that want to do supply chain logistics are not only JD Logistics, Inc., Cainiao, Best Huitong, SF and other competitors all have an important layout in this field.

Relevant data show that since 2019, Shunfeng has continuously strengthened its supply chain management by means of acquisition and establishment of a company. In the logistics briefing of SF Express, Wang Wei also regarded the supply chain service as "the top priority of the next step of SF" and focused on the layout. Obviously, it was not aimed at the traditional express market of 400 billion yuan, but the big logistics market of 3 trillion yuan.

On the eve of JD Logistics, Inc. 's listing, Shunfeng even made a big move, spending HK $17.5 billion to acquire a 51% stake in Kerry Logistics. According to industry insiders, this acquisition took a fancy to Kerry Logistics's influence in the field of supply chain logistics. and made a major move. From a realistic point of view, Shun Feng's move is not difficult to understand.

After all, compared with JD.com, who has established a huge advantage in the field of integrated supply chain logistics, SF's current influence in the field of supply chain logistics is still limited. And through the action of overweight acquisition, it can help it narrow the gap with JD Logistics, Inc. in supply chain logistics as soon as possible.

At present, the supply chain logistics has also been put on a more important position by the rookie and Best, who are also making efforts in this field. Although from the current volume and scale of other companies, they are still unable to compete with JD Logistics, Inc., but in the context of the increasing homogenization of the traditional express market, supply chain logistics with huge room for growth is bound to become a new focus of competition among all parties. This also means that with the listing of JD Logistics, Inc., the battle in the new field of supply chain logistics will only become more intense.