In the past two years, the logistics industry has changed dramatically. Since the middle of last year, courier companies have stopped the price war. In addition, the pattern of "four links and one delivery" has also changed. Not long ago, there were reports that JD.com would acquire Debon.
Recently, JD Logistics announced that it will acquire a 66.49% stake in Debon for 8.976 billion yuan. According to reports, Yu Rui, CEO of JD Logistics, made it clear at the internal management meeting that the Debon brand will continue to be retained, Debon will continue to operate independently as an A-share listed company, and JD Logistics will do its best to develop better with Debon.
It was Debon who defeated Debon
For a long time, Debon has been the "king of less than one carnage", and its revenue scale exceeds the sum of the top five in the same industry. However, with the rise of e-commerce and some changes in the business environment, Deppon must add new tracks to seek greater growth. In 2018, Debon successfully landed on the Shanghai Stock Exchange, becoming the first listed express delivery company. After the listing, Cui Weixing realized the trend of LTL express delivery and used the power of the entire company to completely break the boundary between express delivery and LTL express delivery. In the first step of the transformation, the 3-60 batch express delivery business was launched (up to 60 kg of cargo promised 100% free upstairs). Deppon, which enters the express track, cannot compete with SF in terms of timeliness and cost. From 2018 to 2021, Deppon's "express delivery business" revenue declined year by year, while "express delivery business" revenue grew slowly. In 2021, its net profit fell by nearly 90%. On February 28, 2022, debon's stock trading was suspended, and there were widespread rumors on the Internet that Debon would be acquired. Although the strategic transformation of the organization was not smooth, debon's proud talent system gradually lost its advantage.
Therefore, Debon would rather wait for internal talent training than consider "airborne troops". This practice greatly limits the external vision of internal talents and forms an internal atmosphere of "fear of survival". Instead, they have slowed down the development of talent echelons and cultivated some poor internal competitive styles. On the contrary, over time, Deppon's internal culture was influenced by a bad atmosphere.
Termination of listing
The announcement disclosed that after the completion of the above transaction, JD Zhuofeng will trigger the obligation of a full tender offer. With the disclosure of the announcement, debon shares, which have been suspended for many days, will also resume trading on the morning of March 14. However, the company also said that the transaction still needs to be submitted to the Anti-Monopoly Bureau of the State Administration for Market Regulation for approval and perform the internal review procedures of the transferee.
According to the reporter's understanding, according to the agreement signed by the two sides, if the transaction is completed, JD.com and Debon will continue to maintain the independent operation of the brand and team, and the overall strategy and business direction will remain unchanged. The announcement also disclosed that if the transaction is successfully implemented, AFTER JD Zhuofeng obtains control of Debon Holdings, it will divest the relevant value-added telecommunications services or cancel the above-mentioned value-added telecommunications business licenses.
What JD.com intends
However, Debon's current business scope is still valued by JD.com. Prior to this, JD.com was not only engaged in the small express delivery business, but also operated the same city business through Dada. But there is still a gap in the delivery of large goods, and the acquisition of Deppon can make up for this deficiency. For JD.com, JD.com's long-term advantage lies in the ability to integrate warehousing and distribution, and the ability of "transportation" is not enough. While building an integrated supply chain service capability, JD Logistics also needs to strengthen its independent resources in trunk express delivery. Investing in Debon Logistics can achieve rapid catch-up in the scale of express delivery business.
Regarding the impact of the acquisition, Yang Daqing said that the development of express delivery and express delivery companies are developing in the ecosystem. Whether it is a courier company or a courier company, it mainly relies on a strong business flow as an ecological support, which is also one of the foundations for the rapid development of SF, Best and Zhongtong in the express delivery market. Deppon has not established a closed-loop business ecosystem similar to SF Express for a long time, nor has it relied on cooperation with Ali Group to absorb business resources such as Best and Zhongtong, resulting in ecological passivity. Through cooperation with JD.com, we can get stable business flow support.
ACCORDING TOE Logistics' financial report released on March 10 showed that the adjusted non-IFRS net loss in 2021 was 1.23 billion yuan, compared with a profit of 1.79 billion yuan in the same period last year. After the transaction is completed, JD.com will hold about 52% of the shares.
The greater the ability, the greater the responsibility
People's Daily also published a feature article titled "Digital Upgrading Also Requires Creativity," praising JD.com and the craftsmanship displayed by Liu Qiangdong and JD.com. It can be said that being praised by the People's Daily is enough to prove that the efforts of Liu Qiangdong and JD.com are meaningful. In fact, it is not the first time that people's dailys have praised Liu Qiangdong and JD.com. As an entrepreneur who always keeps his social responsibility in mind, Liu Qiangdong has made many contributions to society.
Just the day after the Spring Festival Gala, Liu Qiangdong made another amazing move. Through JD.com, he announced that he would donate some of his shares to third-party funds to support the development of public welfare undertakings such as education and environmental protection. The shares are reportedly equivalent to 14.8 billion yuan. Even many entrepreneurs in China rarely receive such huge donations. Having such a broad mind and courage is enough to prove that Liu Qiangdong is indeed an excellent entrepreneur who cares about society and cares about society.
In fact, Liu Qiangdong's good deeds are not limited to donations. Liu Qiangdong has also made positive contributions to the construction of beautiful villages. A few years ago, Liu Qiangdong even went to Pingshi Village in Fuping County, Hebei Province, as the honorary village chief. Liu Qiangdong even lived in Pingshi Village for a long time. He not only ate with the villagers, lived together, and lifted themselves out of poverty together, but also built a road with all directions for Pingshi Village out of his own pocket. It is precisely under the unremitting efforts of Liu Qiangdong that Pingshi Village has got rid of its original appearance of poverty and glowed with a new light of collective prosperity.