Li & Fung seduces capital after going public. The supply giant, which ceased trading on the parquet on May 27 after 28 years on the Hong Kong stock exchange, has given its capital to JD.com. The ecommerce group has invested a hundred million dollars in the company.
The operation was carried out by issuing new shares at Hong Kong $ 1.25 each. The Fung family will maintain control of the company, with 60% of the voting rights.
The alliance is part of the digital transformation of Li & Fung, led by the fourth generation of the founding family, with Spencer Fung at the helm. For JD, for his part, it represents a further step in his aspiration to become “a leading provider of technology and services based on the supply chain”.
JD.com aspires to become “a leading provider of supply chain-based technology and services”
"The alliance between JD and Li & Fung is especially relevant in today's business environment, in which the global supply chain is being restructured by the impact of the Covid-19 pandemic," JD said in the statement.
JD.com is an e-commerce group that, like its rival Alibaba or Amazon in the United States, has developed an entire ecosystem of services around its core business, including logistics or service. cloud.
Li & Fung, meanwhile, was founded in 1906 in the Chinese city of Guangzhou (today known as Guangzhou) under the Qing dynasty. Its founders, Li To-ming and Fung Pak-liu were porcelain merchants and began exporting ceramics and silk to the United States and Europe.
In 1937, the company opened its first office in Hong Kong, and during the 1990s it became one of the largest intermediaries between Chinese factories and buyers around the world. In 2015 it already had 250 offices and more than 8,000 clients. In 1992, the company made the jump to the Hong Kong stock exchange.