JD.Com Inc (ADR ) (JD): Hillhouse Capital Management Cuts Passive Stake

JD.Com Inc (ADR) (NASDAQ:JD) is an online direct sales company, located in Beijing, China. The company boosted its net revenues by more than 50% to nearly $4.7 billion in the third quarter of 2014. The company reported more nearly 60% increase in its online direct sales. Last year, JD.Com Inc (ADR) (NASDAQ:JD) became the first e-commerce company in China to leverage high-speed rail for shipping. As of September 30, 2014, the company operated 118 warehouses with an aggregate gross floor area of approximately 2.3 million square meters.

JD.Com Inc (ADR) (NASDAQ:JD) stock has also been performing since January 2014. The stock’s 1-year performance stands at 15.91%, and its year-to-date performance at 4.69%. Currently, the stock is trading around $24. Analysts set the average target price of the stock at $32.07, while the average recommendation is ‘Overweight’ for the stock. JD.Com Inc (ADR)(NASDAQ:JD) has a market cap of over $33 billion.

Last week, JD.Com Inc (ADR) (NASDAQ:JD) announced a strategic partnership with Bitauto Hldg Ltd (ADR) (NYSE:BITA) and Tencent Holdings Limited to develop the leading automotive e-commerce platform in China. JD.Com Inc (ADR) (NASDAQ:JD) and Tencent Holdings agreed to invest US$1.3 billion in Bitauto Hldg Ltd (ADR) (NYSE:BITA), and US$250 million in cash in YiXin Capital Limited, a subsidiary of Bitauto Hldg Ltd (ADR) (NYSE:BITA) primarily engaged in e-commerce-related automotive financing platform business. The three companies plan to work together to provide enhanced online automotive transaction services to car buyers across China. The deal is expected to close in the first half of 2015, subject to customary closing conditions.

Following the completion of the transactions, JD.Com Inc (ADR) (NASDAQ:JD) and Tencent Holdings Limited will hold 25% and 3.3% of the Bitauto Hldg Ltd (ADR) (NYSE:BITA)’s outstanding shares on a fully diluted basis, respectively. In addition, and JD.Com Inc (ADR) (NASDAQ:JD) will secure one seat on the board of directors of Bitauto Hldg Ltd (ADR)(NYSE:BITA). Upon closing, JD.Com Inc (ADR) (NASDAQ:JD) and Tencent Holdings will hold 17.7% and 26.6% of YiXin Capital, respectively.

In December 2014, JD.Com Inc (ADR) (NASDAQ:JD) announced a secondary offering of an aggregate of around 26 million American depositary shares (ADSs) by certain selling shareholders. Each share represents two Class A ordinary shares of the company. The offering was priced at US$23.80 per ADS.

Disclosure: none