Li & Fung, a Hong Kong-based centenarian supply chain has announced that it has secured US$100 million from Chinese Ecommerce giant JD.com.
This strategic investment comes after the 1906-founded supply chain company delisted from the Hong Kong Stock Exchange in May 2020 after shareholders accepted the privatization proposal from the board of directors.
The company intends to use this new funding to grow its digital supply chain according to the statement. The statement added the two companies will be partnering on “private label initiatives for the China domestic market.”
CEO of Li & Fung, Spencer Fung said in the statement, “Our goal to create the Supply Chain of the Future and to improve the lives of one billion people in our global supply chain remains more relevant than ever in this turbulent world.”
After delisting from the Hong Kong Stock Exchange, the ownership of Li & Fung was split between Fung Family and Singapore-headquartered logistics solutions provider GLP with the latter holding 40% of shares voting shares and all the non-voting shares.
Mr Fung thinks both partnerships will work in favor of the company, “The partnership with GLP and the addition of JD will be instrumental in further strengthening Li & Fung.”
On the financials of the firm Mr Fund said “While our financials were affected by strong headwinds in the retail sector and global markets, we achieved important gains in our goal of creating the Supply Chain of the Future in our recently completed three-year plan.”