(Yicai Global) May 14 -- Shares in Xinning Modern Logistics rose by the maximum 10 percent daily limit today after it joined forces with the delivery arm of JD.Com to develop an Internet of Vehicles management platform as part of the Chinese e-commerce giant's efforts to connect 200,000 vehicles by 2020.
Jingbangda Trading, known as JD Logistics will work with the Xinning to boost operational efficiency through the platform with the long-term goal of connecting two million vehicles, according to a statement from the Beijing-based company. The Jiangsu province-based firm's stock price [SHE:300013] rose 10.01 percent to CNY16.70 (USD2.44) today.
JD.Com will spend CNY104 million (USD15.1 million) to buy a 10 percent share in the of the company as part of the agreement. Xinning provides third-party comprehensive logistics services and stores electronic components at bonded warehouses.
The two parties will utilize technologies such as logistics sensors, big data and intelligent algorithms to build a unified big data platform through which both vehicles and goods are connected to the network to boost resource matching, enhance vehicle efficiency and optimize operating costs. The pair will also explore new markets together.
Xinning will plan, design, operate and manage the IoV platform and develop products while JD Logistics will handle commercial interfaces including the installation of networks and equipment.
The two parties also aim to discuss and cooperate on areas such as intelligent storage supply chain technology, cold chain logistics and cross-border e-commerce, with the aim of greatly reducing inventory and forming an optimization solution for the supply chain.
The pair will also explore cooperation in innovative areas such as the commercial application of the fifth-generation networks, smart transportation, mining and the application of logistics big data, cloud services and storage planning.
Editor: William Clegg