Unexpectedly, Jingdong Digital Technology withdrew its IPO and terminated the listing process of Science and Technology Board.
According to statistics, including Jingdong Digital Technology, 32 companies have terminated the IPO review of the Science and Technology Board during the year, including AI star companies such as Itu Technology and Zoyu Technology. According to some industry insiders, there are two reasons for the termination of these companies: firstly, the IPO regulatory review has been tightened; secondly, the internal changes of the companies.
In March this year, there was news that Jingdong Digital Technology Group might withdraw its IPO plan from the Science and Technology Board and might resubmit its listing application in the future.
Before the termination of this IPO, on March 31, Jingdong Group announced the completion of the restructuring of Jingdong Cloud and AI business to Jingdong Digital Technology, with a total value of 15.7 billion yuan.
200 billion giant terminates review
In December 2013, Jingdong Finance released an innovative factoring product “Jingbao Bei” for small and medium-sized merchants, and in February 2014, launched the first credit consumption product Jingdong White Strip. “In November 2018, we proposed the positioning and strategic plan of “digital technology” and upgraded it to “Jingdong Digital Technology”.
In June 2020, Jingdong Digital Technology signed a listing counseling agreement; Jingdong Digital Technology’s listing application was accepted by the SSE on September 11, 2020, and the first round of inquiries from the SSE were answered in the same month. Originally, Jingdong Digital Science planned to list on the Science and Technology Board within last year, with a target valuation of up to 200 billion yuan. Due to changes in the regulatory environment, Jingdong Digital Technology’s listing plan did not materially advance, but the company followed up with continuous actions on internal personnel structure and business structure adjustment.
In December 2020, Jingdong Digital Technology made personnel changes: Chen Shengqiang, CEO of Jingdong Digital Technology, became vice chairman of Jingdong Digital Technology and chief of staff of Jingdong Group, and Li Yayun, chief compliance officer of Jingdong Group, became CEO of Jingdong Digital Technology. in addition, Jingdong Digital Technology added key personnel He Chengfeng, who is the chairman of the supervisory board of the company. In January this year, the legal representative of Jingdong Digital Technology was changed from Chen Shengqiang to Li Yayun.
In terms of business restructuring, in December 2020, Jingdong Group announced that it intended to integrate its cloud and AI business into Jingdong Digital Technology to achieve integrated synergy in the technology segment, as authorized by the board of directors to promote it. At that time, Jingdong Group said that this move would enable Jingdong Group to further focus on the main channel of supply chain-based business, and at the same time, the integrated cloud and AI business of Jingdong Digital Science would become the core business grip of Jingdong Group to provide technology services to the outside world, and Jingdong Cloud and AI and Jingdong Digital Science would achieve synergy in technology innovation, complement each other in application scenarios, and open up product solutions.
On March 31, Jingdong Group announced the spin-off of Jingdong Cloud and AI business to Jingdong Digital Technology for a total value of RMB 15.7 billion, in exchange for the issuance of common shares by Jingdong Digital Technology. Upon completion of this transaction on March 31, 2021, Jingdong’s stake in Jingdong Digital will increase to approximately 42% at that time.
According to Zhang Aoping, Vice President of RuYi Financial Research Institute, the current industry standard for listing on the Science and Technology Board is focused on “hard technology” companies, while the current business model and business revenue sources of Jingdong Digital Technology are not in line with the “hard technology” companies under the evaluation guidelines of the Science and Technology Board’s science and technology attributes. “This is a deviation from the overall industry positioning of the board.
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