JD Completes Business Restructure For Its Fintech Unit

April 1, 2021 10:50 pm

Beijing (PingWest)- Chinese e-commerce giant has completed a business reorganization that sold its cloud and artificial intelligence businesses valued at a combined CNY15.7 billion to its fintech unit JD Technology, whose Shanghai Stock Exchange IPO delayed.

After the business overhaul, increased its positions in JD Digits from 36.8% to 42% percent, according to the company’s filing with the US Securities and Exchange Commission (SEC) on Wednesday. According to the exchange filing, JD said it expect JD Technology to be “better positioned to deliver a suite of cutting-edge technology service to its business partners.”

The business reorganization was announced by JD in December last year.

After the restructuring, JD Technology can deliver better service and build stronger ties with business partner such as US content delivery network services provider Cloudflare.

In April 2020, JD has announced a new partnership with U.S web infrastructure and security company Cloudflare to help global businesses expand their reach in China.

Through its intelligent technology unit JD Cloud& AI, JD will help Cloudflare to establish 150 new data centers in mainland China over the next three years, up from 17 at present. Meanwhile, JD will use Cloudflare’s software to operate and support operation.

San Francisco -based Cloudflare provides a suite of products that allow businesses to improve access to their website with tools such as firewalls, routing, virtual private networks (VPN). Cloudflare is focused on increasing the performance and security of its enterprise customer’ websites and online services.

With Cloudflare’s software, U.S businesses looking to enter the Chinese market will be able to connect faster with customers in regions typically unavailable.

Alex Dyner, the head of the Cloudflare’s special projects group, said in a blog post that the company’s partnership with JD provide not only cloud infrastructure service and local expertise, but also help companies with in-country logistics.

JD Technology’s restructuring came at the time when the Chinese government tightening ts crackdown on monopolistic practices on the internet giants, mainly in the areas of ecommerce and fintech.