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JD Technology completes business, ownership restructuring as IPO plans remain unclear

  • JD.com has increased its equity interest in fintech unit JD Technology to 42 per cent, following a business restructuring
  • The e-commerce giant’s cloud computing and artificial intelligence operations as well other assets worth US$2.4 billion have been transferred to JD Technology

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People stand under e-commerce giant JD.com’s logo at the Appliance and Electronics World Expo in Shanghai on March 23, 2021. The company’s fintech unit, JD Technology, will now run its cloud computing and artificial intelligence operations. Photo: Reuters
Minghe Hu
JD.com has completed a business reorganisation that transfers the e-commerce giant’s cloud computing and artificial intelligence operations as well as other assets worth 15.7 billion yuan (US$2.4 billion) to fintech unit JD Technology, whose plans to go public in Shanghai appear to be on hold.

The transaction increases JD.com’s equity stake in JD Technology, previously known as JD Digits and JD Finance, to 42 per cent from 36.8 per cent, according to the Beijing-based company’s filing with the US Securities and Exchange Commission (SEC) on Wednesday. It expected JD Technology to be “better positioned to deliver a suite of cutting-edge technology services to its business partners”.

After the restructuring, JD Technology could become part of an ambitious initiative with US content delivery network services provider Cloudflare, which involves the development of 150 new data centres to help global enterprises do business in mainland China and domestic companies expand overseas. That partnership was formed by JD Cloud & AI and San Francisco-based Cloudflare in April last year.

A JD.com spokeswoman said the company had no further comment beyond the SEC filing.

JD Technology, previously known as JD Digits, has added cloud computing and artificial intelligence services to the range of financial products it offers to consumers and businesses in China. Photo: Handout
JD Technology, previously known as JD Digits, has added cloud computing and artificial intelligence services to the range of financial products it offers to consumers and businesses in China. Photo: Handout
JD Technology’s restructuring has come amid sweeping regulatory changes in China’s financial technology sector, which resulted in authorities pulling the rug from under the largest capital-raising exercise in global finance – the US$35 billion initial public offering (IPO) in Hong Kong and Shanghai by Ant Group – 48 hours before trading was expected to start in November last year. Ant Group is an affiliate of Alibaba Group Holding, the parent company of the South China Morning Post.
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