Carlyle congratulates JD Logistics on its HKEX listing

Carlyle invested into JD Logistics to capture delivery demand amid China’s fast-growing e-commerce industry

JD Logistics debuted on the Hong Kong Stock Exchange on Friday, May 28, 2021, raising HK$24.113 billion, if the over-allotment option is not exercised, as the company seeks to solidify its market leading position in supply chain solutions and logistics services in China.

As the largest integrated supply chain solutions and logistics services provider in China, JD Logistics has established six highly synergized logistics networks which are extensive, flexible and digitally integrated. These six logistics networks include warehousing, line-haul transportation, last-mile delivery, bulky item logistics, cold-chain logistics and cross-border logistics, which cover almost all districts, counties and the total population in China. Through its advanced proprietary technology and operational and industry know-how, JD Logistics provides its clients and customers with a full spectrum of supply chain solutions and high-quality logistics services that cover all industries. The Company has grown rapidly since establishment, with year-on-year revenue growth of 47.2% in 2020 from RMB 49.8 billion to RMB 73.4 billion, and 64.1% year-on-year revenue growth in 1Q 2021.

China’s integrated supply chain logistics services industry is expected to grow from RMB2,026 billion in 2020 to RMB3,190 billion by 2025, representing a CAGR of 9.5%[1]. This growth is largely being driven by the digitalization of China’s economy, which has created a significant increase in consumer demand in e-commerce that is currently severely underserved.

JD Logistics plans to use the proceeds from its IPO to upgrade and expand its warehouse, delivery and logistics networks, develop advanced supply chain technologies, expand the breadth and depth of its solutions, and further build its international supply chain network.

Carlyle invested into JD Logistics in 2018 through an affiliated entity of Carlyle Asia Partners IV.

The Carlyle Asia advisory team said: “JD Logistics has a seasoned management team with a deep understanding of the Chinese consumer, and is highly valued by merchants and customers for its superior service, quality and reliability. The scale of the Company’s network, its advanced technology and best-in-class customer service, has enabled it to achieve outstanding operating performance and strong financial results. The company maintains a highly competitive position amid a fragmented sector, and we are pleased to be a part of this significant milestone in its next phase of growth.”

Carlyle has a well-established history of investing in the technology and business services sector, globally investing around US$30 billion of equity as of March 31, 2021, with over US$4 billion of this in Asia[2], Carlyle seeks opportunities in companies with strong disruptive technologies that have captured an early lead or a product niche, with the opportunity to transform these businesses into industry or geographic leaders. Carlyle’s Asia investments include ANE Logistics, Delhivery, Ant Group, ByteDance, China Literature, Tuhu, Spark Education, Du Xiaoman Financial, Nxtra Data, among others.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $260 billion of assets under management as of March 31, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,800 people in 29 offices across five continents.

Carlyle has been making investments in China for over two decades. With global resources, deep industry expertise and strong local knowledge, Carlyle has invested more than US$10 billion of equity in over 110 transactions across China as of March 31, 2021.

Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

Media Contacts:

The Carlyle Group
Tammy Li
Phone: +852 2878 5239
Email: tammy.li@carlyle.com

[1] JD Logistics HKEX IPO Prospectus – https://www1.hkexnews.hk/app/sehk/2021/103201/documents/sehk21021600660.pdf  

[2] Technology and Business Services includes Telecom. Carlyle Asia also includes logistics companies.