JD Industrial IPO imminent, Richard Liu’s “supply chain empire” gains another piece.

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Author | Wang Xiaojuan

Editor | Huang Yu

Liu Qiangdong’s capital puzzle is about to have the key piece of the industrial supply chain added.

Recently, the official website of the Hong Kong Stock Exchange revealed that JD Industrial Co., Ltd. has officially passed the listing hearing. This marks the fourth attempt by JD Industrial since March 2023 to list in Hong Kong, and the approval means the company is expected to officially go public in December.

Currently, there is no updated market valuation for JD Industrial. Back in March 2023, it completed its Series B financing, raising a total of $300 million at a valuation of $6.7 billion (approximately RMB 47.6 billion).

If the listing is successful, JD Industrial will become the sixth company in the JD ecosystem to go public, after JD Group, JD Logistics, JD Health, Dada Group, and Deppon Logistics.

JD Industrial's journey to listing has not been smooth. The company submitted listing applications three times before, in March 2023, September 2024, and March 2025, but all failed due to the expiration of the prospectus validity period.

Prior to this approval, JD Industrial already held a pre-IPO roadshow in Hong Kong earlier this month, with the fundraising amount expected to be about $500–$600 million. The joint sponsors of the IPO are BofA Securities, Goldman Sachs, Haitong International and UBS, all of which are top international investment banks, making for a strong lineup.

In terms of equity structure, JD Group, through its wholly owned subsidiaries, holds about 78.84% of JD Industrial’s shares, maintaining absolute control. JD Group founder Liu Qiangdong holds 3.68% through Max I&P Limited.

JD Industrial’s development dates back to October 2018, when it became a primary category of JD.com and entered the core business segment.

2020 was a critical year for JD Industrial’s development, not only completing its Series A funding led by GGV Capital, with participation from Sequoia Capital and CPE Yuanfeng Capital, but also acquiring Suzhou Gongpinhui in August that year.

In March 2023, JD Industrial completed its Series B financing, raising $300 million at a valuation of $6.7 billion, triple the value in 2020.

After years of development, JD Industrial has become China’s largest MRO (maintenance, repair, and operations) procurement service provider. According to data from China Insights Consultancy, in terms of 2024 transaction volume, JD Industrial’s market share reached 4.1%, nearly three times that of the second place.

As it approaches its IPO, JD Industrial has also achieved steady financial growth and turned losses into profits.

According to its prospectus, the company’s revenue from continuing operations grew from RMB 14.1 billion in 2022 to RMB 17.3 billion in 2023, and further increased to RMB 20.4 billion in 2024, with a two-year compound annual growth rate of 20.1%.

More notably, JD Industrial has successfully turned a profit. In 2022, it recorded a net loss of RMB 1.3 billion; in 2023, it achieved net profit of RMB 4.8 million; and in 2024, its profitability further increased, with net profit rising to RMB 760 million.

From the latest half-year data, for the six months ending June 30, 2025, JD Industrial’s net profit reached RMB 450 million, a significant increase from the RMB 290 million in the same period of 2024.

In terms of the market, JD Industrial's core competitiveness lies in its fully digitalized and intelligent supply chain system.

The company has built a three-network integrated supply chain system—"product network, warehouse network, and fulfillment network"—to address issues such as highly fragmented supply and demand, redundant distribution layers, and a high proportion of non-standardized products in the industrial goods sector. As of the end of June this year, JD Industrial offered about 81.1 million SKUs across 80 product categories, involving about 158,000 manufacturers, distributors, and agents in its industrial supply network over the past 12 months.

This year, JD Industrial launched JoyIndustrial, the industry’s first large industrial supply chain model, further strengthening its technological edge. This model is trained on over 57.1 million industrial SKU data accumulated through JD’s long-term service to the industry, covering more than 40 sub-sectors and serving over 10,000 industrial enterprises.

JD Industrial’s IPO is closely tied to JD's overall strategy to transform into an industrial internet company. Liu Qiangdong’s vision goes beyond the consumer internet; he hopes to leverage JD Industrial’s B2B business to make it the "connector for industry and manufacturing."

Despite promising prospects, JD Industrial still faces many challenges ahead.

Inventory turnover pressure is increasingly evident. The prospectus shows that from 2022 to the first half of 2025, the value of its inventory increased from RMB 607 million to RMB 1.25 billion; inventory turnover days rose from 17.9 days to 23.1 days. The decline in inventory turnover efficiency exposes a lack of accurate demand forecasting.

Secondly, business independence remains to be proven. Although JD Industrial emphasizes "independent operations," its deep ties with JD Group cannot be ignored.

In 2022, JD Industrial earned RMB 351 million in marketing services revenue from JD Group. By just the first half of 2025, this figure had nearly reached RMB 336 million, with growth in advertising and other services heavily relying on JD’s ecosystem traffic. Although the proportion of revenue from JD Group platforms has decreased from 48.7% in 2021 to 39.7% in 2024, it remains significant.

Facing these challenges, JD Industrial is actively expanding its second growth curve. International business has become a strategic focus, with JD Industrial providing offshore services to more than 100 Chinese companies, covering Mexico, Indonesia, Hungary, Thailand and other countries.

At the same time, the company is strengthening its presence in emerging fields such as robotics.

Recently, JD Industrial has entered into partnerships with Jingyao Technology, Nanjing Tianchuang Electronic Technology Co., Ltd. and others to deepen cooperation in online sales of robots and core components, and supply chain optimization. These efforts are the practical embodiment of their slogan "Buy robots, go to JD," further strengthening their layout in industrial automation.

Data shows that as of the end of June 2025, JD Industrial has served more than 11,000 key enterprise clients and over 2.6 million small and medium-sized enterprise clients, including 60% of China's Fortune 500 companies.

JD Industrial’s listing will be another expansion of Liu Qiangdong’s capital map, and after his comprehensive emphasis on the supply chain, it is the capital market’s recognition of JD Industrial's supply chain transformation towards total digitalization and intelligence.

Next, the market will vote for JD Industrial with real money.

Risk Warning and DisclaimerThe market has risks, investment needs caution. This article does not constitute personal investment advice and does not take into account the individual investment goals, financial situation, or needs of any user. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. Investing based on this information is at your own risk. ```