JD.com Announces Management Shake-up; CEO Liu Steps Back

Day-to-day operations will now be run by former head of JD Retail.
Sep. 06, 2021 21:58
JD.com Announces Management Shake-up; CEO Liu Steps Back

(CapitalWatch, Sep. 6, New York) Chinese tycoon Richard Liu is easing his grip on day-to-day operations of tech giant JD.com Inc. (Nasdaq: JD; HKEX: 9618) while retaining his titles of chairman and chief executive.

The e-commerce giant, with businesses across various industries, announced a slew of new appointments on Monday. The company said Lei Xu, who has served as the CEO of JD Retail, has taken the position of the president of JD.com and will lead day-to-day operations and "collaborative development of various business units of JD.com."

In Xu's place, Lijun Xin steps up to the position of JD Retail's chief executive after serving as an executive director and CEO of JD Health and has seen the unit emerge and led it to its IPO in Hong Kong. Previously, Xin was in charge of JD.com's marketplace business and of different business units of JD Retail.

In turn, Enlin Jin, the vice president of JD Health and general manager of the company's medicine business, takes on the role of CEO of JD Health.

As the founder of JD, Richard Liu plans to "devote more time to formulating the Company's long-term strategies, mentoring younger management, and contributing to the revitalization of rural areas," according to the statement. JD also said Xu will continue to report to Liu.

"JD has a sound management structure with a large number of excellent business leaders, who, represented by Mr. Lei Xu, have strong belief in JD's long-term business philosophy, proven leadership capability and extensive industry experience," Liu said in the press release Monday.

"Looking to the future, the correct long-term strategic design, the growth and development of young talents, and the healthy and coordinated development of various business units will continue to be the driving force for JD in doing the hardest and most challenging, but right and most valuable things for the industry."

On Monday, the stock in JD waivered in red territory, ending down 38 cents, at $79.86 per American depositary share. Year-to-date, the stock in JD is about 8% down amid the regulatory crackdown by Beijing on its tech giants. To compare, the stock in JD's rivals Alibaba Group (NYSE: BABA; HKEX: 9988) and Pinduoduo Inc. (Nasdaq: PDD) are down 25% and 39% year-to-date, respectively.

Last month, JD reported better-than-expected second quarter results, showing $39.3 billion in revenue and $123 million in income. The company counted 531.9 million annual active customer accounts in the 12 months through June.