Core Viewpoint - JD Industrial (7618.HK) listed on the Hong Kong Stock Exchange today, experiencing an initial drop of 7.8% from its issue price, before closing at HKD 14.1 per share, maintaining its issue price with a total market capitalization of HKD 37.9 billion [1]. Company Overview - JD Industrial is the sixth listed company of Liu Qiangdong, with previous listings including JD Group (9618.HK), JD Health (6618.HK), JD Logistics (2618.HK), Debon Holdings (603056.SH), and Dada Group (privatized) [3]. - The company specializes in e-commerce for industrial products, focusing on the online sale of non-production materials (MRO) and production materials (BOM), with over 90% of its revenue coming from this segment [3]. Financial Performance - JD Industrial has shown consistent revenue growth, increasing from CNY 14.1 billion in 2022 to CNY 20.4 billion in 2024, representing a compound annual growth rate (CAGR) of 20.1%. In the first half of 2025, revenue reached CNY 10.3 billion, a year-on-year increase of 18.9% [4]. - The company has become profitable in 2023, reporting a net profit of CNY 4.8 million, a significant turnaround from a net loss of CNY 1.3 billion in 2022. Net profit is expected to rise to CNY 760 million in 2024 and CNY 450 million in the first half of 2025 [4]. Revenue Dependency - JD Industrial's revenue is heavily reliant on traffic from the JD Group platform, with income from this source accounting for 47.1%, 43.4%, 39.7%, and 36.1% of total revenue in 2022, 2023, 2024, and the first half of 2025, respectively [4]. Market Context - The Hong Kong IPO market has been weak recently, with 9 out of 20 new listings since November experiencing a first-day drop, resulting in a 35% failure rate, which is significantly higher than previous periods [3].