5 billion! Liu Qiangdong ventures into the yacht industry

On the first day of the Spring Festival reopening, the domestic yacht industry welcomes a major investment.

Founded by JD.com founder Liu Qiangdong, the independent yacht brand Sea Expandary has signed strategic cooperation agreements with governments in Shenzhen, Zhuhai, and other areas. The plan involves a total investment of 5 billion yuan to build a comprehensive yacht industry chain ecosystem in the Guangdong-Hong Kong-Macao Greater Bay Area, integrating R&D, manufacturing, operation, and services. The company aims to enter the market with new energy and intelligent technology, attempting to reshape China’s yacht industry landscape.

According to the Science and Technology Innovation Board Daily, Sea Expandary has completed the launch of its official website and the establishment of its core management team. Multiple R&D, manufacturing, and operational entities under the brand are being established simultaneously, and global business deployment has officially begun. The agreement states that the brand will build a large modern yacht manufacturing base in Zhuhai, establish its Chinese headquarters in Shenzhen, and participate in the investment and operation of several docks and supporting facilities in Shenzhen. Additionally, it will set up key nodes such as R&D innovation centers, operation service centers, and bonded maintenance centers in the Greater Bay Area, forming an industry cluster of “headquarters + manufacturing + services.”

It is reported that Sea Expandary will focus on new energy and intelligent yachts, deeply integrating AI and robotics technology, with an emphasis on safety, tranquility, environmental protection, and comfort. Liu Qiangdong stated that this investment is a personal investment, and he will not be directly involved in operations and management. He also expressed hope that in the future, they can produce yachts costing around 100,000 yuan, making yachts affordable for ordinary salaried workers.

Behind this large investment is China’s rapidly expanding yacht market and the severe mismatch in manufacturing capacity. Data from the Ministry of Transport shows that over the past three years, the number of yachts in China has grown significantly, with newly registered yachts accounting for 54.7% of the total. It is expected that this growth will continue during the 14th Five-Year Plan period. However, in contrast, China’s shipbuilding industry leads globally in container ships, oil tankers, and bulk carriers, while the development of the “small boat” segment—yachts—lags seriously behind.

Data indicates that in 2024, China’s yacht manufacturing industry will have a total output value of only 12.8 billion yuan, with exports around 600 million USD. The industry is characterized by small enterprise sizes, scattered layouts, and weak competitiveness, with few companies making heavy investments in design, R&D, and global marketing.

Liu Qiangdong’s JD.com provided a press release to the Science and Technology Innovation Board Daily, stating that domestic yacht companies generally have low investment levels, with almost no projects exceeding 10 million yuan in single investment. Yachts are a capital- and technology-intensive industry; only large-scale investments can enable direct competition with top-tier European and American manufacturers.

As an individual investment project, Sea Expandary is likely unrelated to JD.com’s core retail business. Li Chengdong, founder of Dolphin Society, told the Science and Technology Innovation Board Daily that this layout is more driven by the founder’s personal interest rather than JD’s usual retail and supply chain expansion. It differs significantly from JD’s recent overseas investments in Hong Kong, Germany, and other regions. He believes that yachts are still a niche high-end consumption item and have not yet become widely popular, so the synergy with JD’s main business is limited.

An unnamed securities analyst told the Science and Technology Innovation Board Daily that the yacht industry involves high fixed asset investments and long payback periods. Even small yachts incur annual costs close to 100,000 yuan for docking, maintenance, and insurance. The goal of mass-market affordability for salaried workers faces practical cost barriers. Realization of this vision depends on industry clustering to reduce costs and ongoing policy support.

However, the analyst also noted that Guangdong has natural advantages: Shenzhen, Zhuhai, Foshan, and other cities have introduced policies to support yacht manufacturing and dock construction. The industry chain is beginning to take shape, and combined with the marine economy and consumption upgrade dividends in the Greater Bay Area, the project has favorable conditions. Liu Qiangdong’s personal investment also suggests a longer-term perspective, not focused on short-term financial returns.

(Source: Science and Technology Innovation Board Daily)