Sou Hu Cai Jing·2025-09-30 13:53Core Viewpoint - JD Industrial Co., Ltd. has submitted its fourth IPO application in Hong Kong since March 2023, aiming to issue up to 253 million shares and raise approximately $500 million, with plans to complete the listing by October to November 2023 [1][2]. Company Overview - JD Industrial, originally part of JD Mall's industrial segment, operates as a provider of industrial supply chain technology and services, focusing on digital transformation to enhance supply security, reduce costs, and improve efficiency [2]. - The company was established as an independent unit in July 2017 and became a primary category of JD Mall in 2018, officially forming JD Industrial after internal restructuring in 2019 [2]. Financial Background - JD Industrial has raised a total of $635 million through multiple funding rounds from investors including GGV Capital, Sequoia China, and Mubadala, achieving a valuation of $6.7 billion after its Series B funding [2]. - The company reported a significant drop in share repurchase price, buying back Pre-A round preferred shares at $1.7354, which was 67% lower than the Series B price of $2.5877 [2]. IPO Progress - After multiple attempts to list, JD Industrial received approval from the China Securities Regulatory Commission for its overseas listing, indicating that previous regulatory hurdles have been cleared [4]. - As of the application date, JD Industrial's total share capital stands at 2.466 billion shares, with JD Group holding 78.84% of the shares through three companies [4]. Business Model and Revenue - JD Industrial primarily serves manufacturing, energy, and transportation sectors, offering MRO (Maintenance, Repair, and Operations) and BOM (Bill of Materials) trading platforms, with a product range that includes hardware, safety supplies, and electrical components [6]. - The company has developed a digital procurement system for key enterprise clients and operates online platforms for small and medium-sized enterprises, boasting over 111,000 key enterprise clients and 158,000 merchants on its platform [7]. Financial Performance - JD Industrial achieved profitability in 2023, recovering from a net loss of approximately 1.3 billion RMB in 2022 to a profit of 4.8 million RMB in 2023, with further growth expected in 2024 [8]. - Revenue projections show a compound annual growth rate of 20.1% from 2022 to 2024, with revenues of approximately 141 billion RMB, 173 billion RMB, and 204 billion RMB respectively, although year-on-year growth rates are slowing [6][8]. Strategic Initiatives - The company is focusing on enhancing its industrial supply chain capabilities and expanding its geographical reach through the funds raised from the IPO, alongside potential investments or acquisitions [11]. - JD Industrial's "Tai Pu" solution combines digital and product offerings to provide comprehensive supply chain solutions, which is seen as a critical strategy for future growth [10].