JD.com, a leading Chinese e-commerce firm, announced on Wednesday that it has renewed a strategic cooperation agreement with Tencent for a period of three years.
Under the arrangement, Tencent will continue to offer JD.com prominent Level I and Level II access points on its WeChat platform to provide traffic support, and the two parties also intend to continue to cooperate in a number of areas including communications, technology services, marketing and advertising, and membership services, among others. The value of such cooperation is expected to be paid or spent in cash, and in the form of JD.com’s shares combined over the next three years.
JD.com will issue to Tencent a certain number of its Class A ordinary shares for a consideration of up to $220 million by reference to prevailing market prices at certain pre-determined dates during the three-year period.
According to this agreement, both parties will carry out business cooperation in the fields of e-commerce portals, cloud technology and cloud services, membership systems, online conferences, enterprise services, smart retail and ads.
This is the third round of strategic cooperation between JD.com and Tencent. The last three-year agreement between the two firms was carried out in May 27, 2019. This new agreement, which was confirmed on Wednesday, will continue Tencent‘s traffic support clause for JD.com.
On the basis of continuing previous cooperation, the two sides have further expanded and deepened specific collaboration in the fields of technological innovation and supply chain services.
In terms of technical cooperation, the two sides indicated that they will strengthen technical exchanges and cooperation in artificial intelligence and other fields, according to their respective advantages. The two sides also plan to set up joint technical laboratories in information security and other areas.
In terms of supply chain services, JD.com, as a technology and service enterprise based on supply chains, will give full play to its advantages and provide services such as edge computing, digital procurement, industrial interconnection, supply chain finance, intelligent logistics and “customer-to-manufacturer” areas.
In addition to the content involved in the agreement, both sides also agreed to seek more opportunities for in-depth cooperation in the future.