BEIJING, Feb 25 (Reuters) – The founder of Chinese e-commerce giant JD.com, Richard Liu, has launched an independent yacht brand, Sea Expandary, aiming to build “100% green” yachts that will be affordable for ordinary households.
Liu is investing 5 billion yuan ($690 million) in the business, he said at a signing ceremony on Tuesday, adding that the amount was needed to compete with top yacht makers globally.
But he does not plan to take part in the company’s day-to-day operations and said that the bulk of his time would remain focused on JD.com.
Sea Expandary aims to cover research and development, manufacturing as well as sales and other services.
It expects to invest in a manufacturing base in Zhuhai and establish its headquarters in Shenzhen, where it also plans to participate in the construction and operation of multiple marinas.
The brand signed strategic cooperation agreements with the Shenzhen and Zhuhai governments this week.
The country’s yacht fleet has grown from around 4,500 to nearly 10,000 over the past three years, data from China’s transport ministry shows.
Rapid economic growth over the recent decades in China has created a much larger urban middle class and a fast-growing cohort of high net-worth individuals, encouraging the development of new markets for premium leisure goods and experiences.
($1 = 7.24 Chinese yuan)
(Reporting by Sophie Yu and Brenda Goh; Editing by Edwina Gibbs)
