Core 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].

Core Viewpoint - JD Industrial is progressing towards its IPO in Hong Kong, potentially becoming the sixth publicly listed company under Liu Qiangdong's leadership, following JD Group, JD Logistics, JD Health, Dada Group, and Debon Holdings [3]. Company Overview - JD Industrial is an industrial supply chain technology and service provider, focusing on digital transformation to help clients ensure supply, reduce costs, enhance efficiency, and maintain compliance [4]. - The company offers a comprehensive digital supply chain solution called "Taipu," which integrates digital and physical aspects of the supply chain, covering procurement, fulfillment, and operations [4]. Market Position - JD Industrial has become the largest player in China's MRO procurement service market, with a market share of 4.1% and a transaction volume nearly three times that of its closest competitor [6]. - As of June 2023, JD Industrial served approximately 11,100 key enterprise clients, including around 60% of China's Fortune 500 companies and over 40% of global Fortune 500 companies operating in China [6]. Product Offering - By June 2023, JD Industrial provided approximately 81.1 million SKUs across 80 product categories, supported by a vast supply network of about 158,000 manufacturers, distributors, and agents [6]. Financial Performance - Revenue from ongoing operations for 2022, 2023, and the first half of 2024 was approximately CNY 14.14 billion, CNY 17.33 billion, and CNY 10.25 billion, respectively, with corresponding gross profits of CNY 2.54 billion, CNY 2.80 billion, and CNY 1.90 billion [7]. - The gross profit margins for these periods were 18.0%, 16.1%, and 18.6%, while net profits were CNY -1.38 billion, CNY 0.48 million, and CNY 0.45 billion, reflecting net profit margins of -9.8%, 0.0%, and 4.4% [7]. Future Plans - The IPO proceeds are intended to enhance JD Industrial's supply chain capabilities, expand its regional operations, and pursue potential strategic investments or acquisitions over the next 48 to 60 months [10].

Core Viewpoint - JD Industrial Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, with Bank of America Securities, Goldman Sachs, Haitong International, and UBS acting as joint sponsors [1]. Company Overview - JD Industrial is a leading provider of industrial supply chain technology and services in China, focusing on digital transformation to enhance supply security, reduce costs, improve efficiency, and ensure compliance [3]. - The company offers a comprehensive digital industrial supply chain solution called "Taipu," which integrates digital and physical aspects to meet diverse customer needs [3]. Market Position - Since 2017, JD Industrial has focused on MRO (Maintenance, Repair, and Operations) procurement services and has become the largest player in China's MRO procurement market, with a transaction volume in 2024 nearly three times that of its closest competitor [4]. - The company is also the largest service provider in China's industrial supply chain technology and services market, holding a market share of 4.1% as of 2024 [4]. Financial Performance - Revenue is projected to grow from approximately RMB 14.1 billion in 2022 to RMB 20.4 billion in 2024, reflecting a compound annual growth rate (CAGR) of 20.1% [4]. - The company served around 11,100 key enterprise clients, including about 60% of China's Fortune 500 companies and over 40% of the global Fortune 500 companies operating in China as of June 30, 2025 [4]. Product Offering - JD Industrial provides the widest range of industrial products in China, with approximately 81.1 million SKUs across 80 product categories as of June 30, 2025 [5]. - The product supply network includes around 158,000 manufacturers, distributors, and agents nationwide [5]. Revenue and Profitability - For the six months ending June 30, 2023, 2024, and 2025, the company reported revenues of approximately RMB 173.36 billion, RMB 203.98 billion, and RMB 102.50 billion, respectively [5]. - The profit figures for the same periods were approximately RMB 4.8 million, RMB 76.2 million, and RMB 45.1 million [5].

Core Insights - JD Industrial's IPO marks a significant step for Liu Qiangdong, reflecting his commitment to supply chain efficiency and a response to the company's recent stagnation [2][9] - The company aims to issue up to 253,309,800 shares on the Hong Kong Stock Exchange, with a strong backing from major underwriters [4][5] IPO Journey - JD Industrial's IPO process has faced challenges, initially submitting its prospectus in March 2023 but later pausing due to application issues. The process was restarted in September 2024 [4] - The recent approval from the China Securities Regulatory Commission removes major regulatory hurdles, paving the way for the company's listing [4] Business Overview - Established in 2017, JD Industrial has evolved into China's largest MRO procurement service provider, with a market share nearly three times that of its closest competitor [6] - The company offers approximately 57.1 million SKUs and serves around 50% of China's Fortune 500 companies [6] Financial Performance - JD Industrial's revenue grew from 14.135 billion to 20.398 billion yuan from 2022 to 2024, with a compound annual growth rate of 20.1% [7] - The company turned a profit, with net income rising from -1.334 billion to 0.762 billion yuan during the same period, although revenue growth rates are slowing [8] Strategic Focus - Liu Qiangdong emphasizes a supply chain-centric approach, believing that the majority of profits should go to brand owners to foster development [9] - JD Industrial aims to translate its consumer-side advantages into the B2B sector, enhancing procurement processes for large enterprises [9] Technological Innovation - The launch of the "Joy Industrial" model represents JD Industrial's commitment to leveraging technology for supply chain optimization, utilizing extensive data from various sectors [10] - The model aims to significantly improve operational efficiency and reduce costs through intelligent decision-making [10] Industry Landscape - The MRO market in China has a low online penetration rate of around 10%, indicating substantial growth potential despite competitive pressures from established players [11] - JD Industrial has set ambitious goals to help reduce supply chain costs significantly over the next five years [11] Global Expansion and Innovation - Liu Qiangdong is pursuing international acquisitions and local e-commerce strategies, with a focus on building local teams and sourcing products [12] - The company is also exploring innovative business ventures, with plans to introduce new initiatives annually [12]

Core Viewpoint - JD Industrials, Inc. is set to become the sixth publicly listed company under Liu Qiangdong, with plans to issue up to 253 million shares on the Hong Kong Stock Exchange, following previous attempts that faced setbacks [1][2]. Company Overview - JD Industrials was established in July 2017 and focuses on industrial supply chain technology and services, initially entering the MRO procurement service sector [1][2]. - The company has expanded to provide a comprehensive industrial supply chain solution named "Taipu," which includes a wide range of industrial products and digital supply chain services [2]. Financial Performance - Revenue has shown steady growth from 141.35 billion in 2022 to 203.98 billion in 2024, with product revenue accounting for 94% of total revenue in 2024 [4][5]. - The company achieved a turnaround in profitability, moving from a net loss of 13.34 billion in 2022 to a net profit of 7.62 billion in 2024 [5]. Funding and Valuation - JD Industrials completed a Series A funding round in 2020, raising 230 million USD, and a Series B round in 2023, which increased its valuation to approximately 6.7 billion USD (477 billion RMB) [3][5]. - The company's major shareholders include JD Group, Liu Qiangdong, and various investment firms such as Sequoia China and Middle East Capital [3]. Market Challenges - Revenue growth rates are declining, with increases of 36.63% in 2022, 22.65% in 2023, and 17.66% in 2024, indicating a potential slowdown in business momentum [5][6]. - The gross margin has decreased from 18.6% in 2021 to 16.2% in 2024, reflecting pressure on profitability [6]. - JD Industrials remains significantly dependent on JD Group, with a substantial portion of its revenue derived from the parent company's platform [6].

Core Viewpoint - JD Industrials, a subsidiary of JD Group, is set to become the sixth publicly listed company under Liu Qiangdong, with plans to issue up to 253 million shares on the Hong Kong Stock Exchange [3][4]. Company Overview - JD Industrials was established in July 2017, focusing on industrial supply chain technology and services, initially entering the MRO procurement service sector [5]. - The company has expanded its offerings to provide a comprehensive industrial supply chain solution named "Taipu," which includes a wide range of industrial products and digital supply chain services [5]. Financial Performance - Revenue has shown steady growth from 141.35 billion yuan in 2022 to an expected 203.98 billion yuan in 2024, with a significant portion coming from product sales [8]. - The company has transitioned from a net loss of 13.34 billion yuan in 2022 to a net profit of 7.62 billion yuan in 2024, indicating a successful turnaround [8]. - However, revenue growth rates are declining, with increases of 36.63%, 22.65%, and 17.66% from 2022 to 2024, suggesting weakening business momentum [9]. Funding and Valuation - JD Industrials has attracted significant external investment, achieving a valuation of approximately 6.7 billion USD (about 477 billion yuan) following its B round of financing in 2023 [6]. - Major investors include GGV Capital, Sequoia Capital China, and Middle East Capital, among others [6]. IPO Details - The IPO proceeds are intended to enhance industrial supply chain capabilities, expand regional operations, and support potential strategic investments or acquisitions [7]. - The company submitted its IPO application for the third time on March 30, 2024, with a deadline for hearing set for September 30, 2024, but has not yet received a hearing notice as of September 22, 2024 [10].

Group 1 - The China Securities Regulatory Commission has issued a notice regarding the overseas issuance and listing of JD Industrials, Inc., allowing the company to issue up to 253,309,800 ordinary shares and list on the Hong Kong Stock Exchange [1] - JD Industrials is recognized as a leading provider of industrial supply chain technology and services in China, offering a comprehensive digitalized industrial supply chain solution named "Taipu" to meet diverse customer needs [3] - The company has become the largest participant in China's MRO procurement service market, with a projected transaction volume for 2024 that is nearly three times larger than that of the second-largest competitor [3] Group 2 - JD Industrials is also the largest service provider in China's industrial supply chain technology and services market, with a market share of 4.1% based on projected transaction volume for 2024 [3] - The company's transaction volume is expected to grow from approximately RMB 22.3 billion in 2022 to RMB 28.8 billion in 2024, reflecting a compound annual growth rate of 13.5% [3]

Core Viewpoint - The strategic cooperation agreement between Greeenme and JD Industrial aims to stabilize the supply chain for export-to-domestic sales, supporting foreign trade enterprises during challenging global supply chain conditions [1][3]. Group 1: Strategic Cooperation - Greenme and JD Industrial signed a comprehensive strategic cooperation agreement to enhance collaboration based on mutual benefits and national initiatives [1]. - The partnership will leverage JD Industrial's expertise in supply chain technology to support Greenme's procurement and operational efficiency [5]. Group 2: Supply Chain Stabilization - JD Group plans to procure no less than 200 billion yuan worth of goods for export-to-domestic sales over the next year, which is a significant commitment to support foreign trade enterprises [3]. - Greenme intends to purchase at least 5 billion yuan worth of goods through JD Industrial's platform, including machinery, engineering materials, and spare parts, to facilitate its projects in Indonesia [3]. Group 3: Digital Supply Chain Transformation - The collaboration will focus on upgrading Greenme's procurement information system, optimizing processes through digital solutions, and enhancing overall efficiency [5]. - Greenme is the first company in the circular economy sector to fully implement a digital supply chain solution, setting a benchmark for the industry [5]. Group 4: Efficient Supply Assurance - JD Industrial will establish customized fulfillment centers and smart warehouses to meet Greenme's material management needs, enhancing delivery experiences and reducing logistics costs [6]. - The partnership will also explore overseas supply chain layouts, particularly in Indonesia, to improve procurement efficiency and reduce costs [7]. Group 5: Performance Metrics - The implementation of JD Industrial's services has led to a 30% increase in procurement efficiency and an 18% reduction in costs for certain products at Greenme's Indonesian facility [7].