Sou Hu Cai Jing·2025-09-25 05:38Core Viewpoint - JD Industrial has filed for an IPO in Hong Kong, marking a significant step for the company as it aims to expand its presence in the market and add to the portfolio of publicly listed entities under JD Group [1][2]. Financial Performance - JD Industrial's revenue for 2022, 2023, and 2024 is projected to be RMB 141.35 billion, RMB 173.36 billion, and RMB 204 billion respectively, indicating a steady growth trajectory [4][5]. - Gross profit for the same years is expected to be RMB 25.4 billion, RMB 28 billion, and RMB 33 billion, with gross margins of 18%, 16.1%, and 16.2% respectively [4][5]. - The primary revenue sources are product sales and services, with product sales contributing RMB 129 billion, RMB 161 billion, and RMB 192 billion over the three years, while service revenue remains stable at approximately RMB 12 billion [4]. Profitability Metrics - The company reported a net loss from continuing operations of RMB 1.384 billion in 2022, a small profit of RMB 4.8 million in 2023, and a profit of RMB 761.6 million in 2024, with operating profit margins of -9.8%, 0%, and 3.7% respectively [6][7]. - Adjusted net profits for the same years are projected at RMB 759.1 million, RMB 894.4 million, and RMB 1.067 billion, with adjusted net profit margins of 5.4%, 5.2%, and 5.2% respectively [7][8]. Cash Flow and Liquidity - JD Industrial's net cash from operating activities for 2022, 2023, and 2024 is RMB 1.975 billion, RMB 1.379 billion, and RMB 1.296 billion respectively [8]. - The company held cash and cash equivalents of RMB 83.72 billion as of December 31, 2024, indicating a strong liquidity position [8]. Shareholding Structure - JD Group holds approximately 77.32% of JD Industrial's issued share capital, while founder Liu Qiangdong holds 3.68% through Max I&P Limited [13][14]. - Other notable shareholders include GGV and Sequoia China, which have invested in various funding rounds [11][16]. Corporate Governance - The executive team includes CEO Song Chunzheng and non-executive directors Liu Qiangdong and Xu Bingdong, with independent directors providing strategic oversight [9][10].