Subsidiary's Lawsuit Against Accepted By Court

SHANGHAI, April 28, 2014 /PRNewswire/ -- Shanghai Shangshang International Trading Co., Ltd. ("Shanghai Shangshang"), a subsidiary of, announced that it has filed a lawsuit against its parent,, with the Shanghai Putuo District People's Court. The lawsuit was filed in connection with selling the subsidiary in violation of the interests of its minority shareholders. The lawsuit was officially accepted by the court on April 1, 2014.

At the end of 2011, announced the acquisition of b2c website following an evaluation of the business by the internal investment team at, according to Lai Dandan, head of Shanghai Shangshang. In June 2012, Shanghai Shangshang was incorporated as the operating body of According to the articles of association, Shanghai Shengdayuan Information Technology Co., Ltd., a wholly-owned subsidiary of, held 80 percent of's shares, valued at RMB 8 million (approx. US$1.3 million), while's management team held the remaining 20 percent, valued at RMB 2 million. booked RMB 350 million in sales in 2013, an increase of more than 500 percent year-on-year, with net profits exceeding RMB 15 million.

On January 22, 2014, unilaterally dismissed's operating team, citing a business adjustment as the reason, without calling a shareholders' meeting and obtaining a shareholders' meeting resolution. On January 28, the 1,123 stores under the management of were shifted to be directly within the online system. On the same day, access to the system for all of's staff was shut off. The website has not been updated since that date, leading to a complete business halt of the website. On April 22, the website of was redirected to

On March 10, 2014, engaged Shanghai K-Insight Law Firm who sent a lawyer's letter to the management team of, specifying that will sell all of its 80 percent stake in to a 3rd party for a sum of RMB 20.

On April 1, 2014, Shanghai Shangshang International Trading Co., Ltd. filed a lawsuit with the Shanghai Putuo District People's Court, claiming that, as the controlling shareholder, has damaged the interests of the subsidiary. The case was accepted by the court on the same day.

According to the appendix file (F-1/A) submitted to the SEC on April 14, will be traded on NASDAQ under the symbol of "JD".

Source: Shanghai Shangshang International Trading Co., Ltd.