Sou Hu Cai Jing·2025-11-14 10:16Core Viewpoint - JD Industrial has initiated its IPO roadshow in Hong Kong, aiming for a potential listing in December 2025, marking it as the sixth company under the JD Group to go public [1][3]. Company Overview - JD Industrial, a subsidiary of JD Group focused on industrial supply chain technology and services, was established in July 2017 [3]. - It ranks first in China's MRO procurement services market, with a transaction volume nearly three times that of the second-largest competitor [3]. - The company holds a market share of 4.1% in the industrial supply chain technology and services sector [3]. Financial Performance - JD Industrial's revenue has grown significantly from 14.1 billion yuan in 2022 to 20.4 billion yuan in 2024 [3]. - The company achieved profitability in 2023, with net profit rising from a loss of 1.3 billion yuan in 2022 to a profit of 760 million yuan in 2024 [3]. - For the first half of 2025, JD Industrial reported a net profit of 450 million yuan [3]. Market Potential - The Chinese industrial supply chain market is vast, with the MRO market expected to exceed 2.1 trillion yuan in 2024, maintaining an annual growth rate above 15% [4]. - The market is highly fragmented, with the top five companies holding less than 8% market share, indicating significant consolidation opportunities [4]. - The digital penetration rate in enterprise procurement is only about 11% in 2024, suggesting substantial growth potential through digital transformation [4]. Business Model and Offerings - JD Industrial offers a comprehensive digital supply chain solution called "Taipu," covering four key areas: products, procurement, fulfillment, and operations [5]. - As of the end of 2024, JD Industrial has partnered with approximately 121,700 suppliers, providing around 57.1 million SKUs across 77 product categories [5]. Ownership and Valuation - JD Group holds approximately 78.84% of JD Industrial, maintaining absolute control [5]. - The company has attracted notable investors, including Sequoia China and Abu Dhabi sovereign funds, with a pre-IPO valuation of about 6.7 billion USD [5]. Revenue Sources - In 2024, JD Industrial generated 8.1 billion yuan from JD Group's platform, accounting for 39.7% of total revenue, although this is a decrease from 47.1% in 2022 [6]. - The company faces challenges with slowing revenue growth and low gross margins, with gross margins of 18.0%, 16.1%, and 16.2% from 2022 to 2024 [6].