BEIJING – Shares of JD Logistics, the logistics arm of Chinese e-commerce giant JD.comThe company made its debut on the Kong Stock Exchange on Friday.
Shares rose more than 1 18% at one point after Hawk Kong opened at 46 46.06.
The vast network of warehouses and distribution workers’ units in China has given the JD a competitive edge against its rival. Alibaba, Beijing-based company can deliver products to millions of customers on the same day, or within the next day.
A worker inspects an order at a JD.com delivery station in Yijuang, Beijing, amid a coronavirus outbreak.
Hillary Pan | CNBC
The unit’s public listing recently marked a series for the parent company, then JD.com went public in New York and then completed secondary listing in Hong Kong. The health unit of the company, JD Health was listed in Hong Kong in December.
“Any failure to maintain stable and dedicated labor from us could lead to disruption or delay in our service,” the company warned, noting the overall tightness and rising wages in the labor market.
Another risk is the heavy dependence of parent company JD on the state.
JD Logistics is looking to sell its distribution services to third parties. But so far its revenue and trade have been tied to the JD, which last year accounted for more than 0% of the logistics unit’s revenue.