Core Viewpoint - JD Industrial, a B2B procurement platform under JD.com, is set to go public, potentially becoming the sixth listed company under Liu Qiangdong's leadership, with plans to issue up to 253 million shares on the Hong Kong Stock Exchange [2][5][19] Company Overview - JD Industrial has been on its IPO journey for over two years, facing multiple delays and challenges, including a failed initial application and a recent successful registration for overseas issuance [5][6] - The company was established as an independent business unit in 2017 and has evolved significantly since its inception in 2013 [6][8] Financial Performance - Revenue is projected to grow from 14.135 billion RMB in 2022 to 20.398 billion RMB in 2024, with a notable recovery from a net loss of 1.3 billion RMB in 2022 to a profit of 48 million RMB in 2023 [8][10] - The majority of revenue (over 90%) comes from product sales, which have a low gross margin of 10-11%, contrasting sharply with the high margins from service revenue [8][11] Market Position - JD Industrial holds a leading position in the Chinese MRO procurement service market, with a transaction volume approximately three times that of its nearest competitor [11][13] - The company serves around 10,600 key enterprise clients and has a product catalog of approximately 57.1 million SKUs [13] Competitive Landscape - The industrial procurement market is highly competitive, with numerous players and low profit margins, leading JD Industrial to potentially adopt a low-price strategy to gain market share [15][17] - The market is fragmented, with the top ten companies holding less than 1.5% of the total market share, indicating significant competition and opportunities for growth [17] Future Prospects - The IPO proceeds are intended to enhance supply chain capabilities, expand regional operations, and explore potential acquisitions [17] - JD Industrial is also venturing into AI, launching an industrial supply chain model aimed at addressing cost and efficiency issues in the sector [17][18] Investment Interest - JD Industrial has attracted significant investment, raising over $600 million from notable investors, indicating strong market confidence despite its low profit margins [18] - JD Group maintains a controlling stake in JD Industrial, holding approximately 77.32% of the shares [18]