Jingdong Digits Technology Holding JD Digits

History

2020: JD.com creates the new company to which it transfers AI - and cloud assets

At the end of December, 2020 JD.com announced creation of new company Jingdong Digits Technology Holding (JD Digits) to which the projects developed by Internet giant in the field of artificial intelligence and cloud computing will be transferred. The corresponding application was submitted to the U.S. Securities and Exchange Commission (SEC).

According to the solution of Board of Directors JD.com, a basis of structure of JD Digits there will be a division of JD Cloud & AI, and the company will own in it "a considerable minority share". Transaction parameters at the time of its announcement are not reported as they will be determined later — as a result of joint work of independent Committee on Audit and third-party consultants.

JD.com creates new company JD Digits to which it transfers AI - and cloud assets

In JD.com calculate that the carried-out reorganization will help the company "offer the business partners a set of the latest IT services" and also focus on the main competences and synergy business, "better to service clients".

Retail brings to JD.com about 94%, and department of non-core assets, as expected, will allow the company to concentrate and strengthen even stronger positions in e-commerce. This business at the company grows much quicker than revenue of Amazon.com in China, notes the Benzinga edition.

Before JD.com also announced department of logistic business (JD Logistics) and change of the head of this division — instead of Rui Yu (Rui Yu) held this post instead of Zhenhui Wang.

After the statement for department of AI - and the cloud business directions of the stock JD.com rose in price for 1.72%. In 2020 the quotation rate of the company increased by 154%. The analyst of Loop Capital Markets Rob Sanderson considers that securities there is a potential growth even more than for 17% that should be promoted by business reorganization.^[1]

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