Deppon Sees Major Executive Shakeup After Acquisition by JD Logistics
Following JD Logistics’ acquisition of Deppon, its performance will soon be integrated into JD.com‘s system. Accordingly, Deppon’s senior management team has undergone a large-scale adjustment. On August 24, Deppon announced that its founder, Cui Weixing, has resigned as general manager for personal reasons, and has been replaced by Huang Huabo, special assistant to Deppon’s president.
The announcement highlighted that Cui Weixing will remain as the chairman of the company, although he is no longer the general manager. Huang Huabo is a senior management employee trained by Deppon, where he has worked since 2001. According to the announcement, from 2001 to 2022, Huang worked his way up from the head of Deppon’s sales department in Guangzhou to the president of Deppon’s efficiency and customer experience management center and the president of its operations management center. Since April, Huang has been the special assistant to Deppon’s president.
Another important adjustment is that the head of finance position has been taken over by Ding Yongsheng, an executive from JD.com, while the division’s former head, Tang Xianbao, remains as the deputy general manager of Deppon. Ding worked for JD.com from February 2012 to August 2022, holding positions such as head of the financial reporting team and head of the finance department.
Deppon also appointed Zuo Gaopeng, Luo Qi and Ding Yongsheng as deputy general managers. Miao Yan, secretary of the board of directors, has resigned and no longer holds any position in the company, while Huang Jinlong is intended to serve as secretary of the board of directors. According to Deppon’s announcement, these executives are also senior employees of Deppon.
This change in personnel has sparked another discussion about Deppon’s independence. As recently as August 24, JD Logistics released its first-half earnings report, where it mentioned that on July 26, 2022, JD Logistics completed the acquisition of more than 50% of Deppon, and Deppon’s financial results started to be consolidated into JD.com‘s financial results. JD Logistics has repeatedly stated that it will maintain the independent operations of Deppon.
Meanwhile, a few days ago, a report on the offer of JD Logistics published by Deppon said that the offer was for the purpose of terminating the listing status of Deppon. But if Deppon’s listing status was not terminated eventually, it would not affect the validity of the offer.
SEE ALSO: JD Logistics Closes 8.98B Yuan Acquisition of Deppon
Deppon released its own financial report on August 24, indicating that in the first half of 2022, its revenue was 14.801 billion yuan ($2.16 billion), down 0.59% year-on-year. Net profit attributable to shareholders of the listed company was 94.2063 million yuan, up 501.63% year-on-year. In the earnings report, Deppon explained a decline in revenue year-on-year in Q1 due to the repeated impact of the external environment, especially ongoing pandemic control measures in China, while revenue in Q2 increased by 3.49% year-on-year.
Deppon mainly engages in express transportation and bulk express, which account for 97.12% of its total revenue. In the first half of 2022, the revenue of its transportation business was 4.611 billion yuan, down 12.67% year-on-year, the revenue of its express business was 9.765 billion yuan, up 6.51% year-on-year, and its proportion in total revenue increased to 65.97%.