Richard Liu, the founder of Chinese e-commerce company JD.com, has launched a standalone yacht brand called Sea Expandary, announcing plans to develop what he described as "100% green" yachts intended to be affordable for ordinary households.
Speaking at a signing ceremony on Tuesday, Liu said he will invest 5 billion yuan, roughly $690 million, into the new business. He characterized that level of capital as necessary to contend with leading yacht manufacturers at the global level. Liu added that he will not be involved in Sea Expandary's daily management, and that his primary focus will remain on JD.com.
Sea Expandary will encompass research and development, manufacturing, sales and other services related to yacht production and ownership. The company signaled intentions to build a manufacturing base in Zhuhai and to establish its headquarters in Shenzhen. In addition to production and corporate facilities, Sea Expandary plans to take part in the construction and operation of multiple marinas.
This week the brand signed strategic cooperation agreements with the governments of Shenzhen and Zhuhai. The company did not provide further operational details beyond its broad plan to cover R&D, production and sales activities and to participate in marina projects.
The announcement comes amid rapid expansion in China’s private yacht fleet. Data from the country’s transport ministry cited at the ceremony indicate the yacht fleet has increased from about 4,500 vessels to nearly 10,000 over the past three years. The launch of Sea Expandary seeks to address demand in a market that has been growing alongside increases in urban wealth.
Sea Expandary’s stated goals include affordability and environmental performance. The company framed its 5 billion yuan commitment as a competitive foothold required to go up against top yacht makers internationally, while Liu emphasized his limited operational role and continued dedication to JD.com. ($1 = 7.24 Chinese yuan)
Sectors impacted: leisure and luxury goods, marine manufacturing, maritime infrastructure, and regional development in southern China.