The Hong Kong Stock Exchange bell rang for JD INDUSTRIALS, marking a significant milestone for the industrial supply chain technology and services subsidiary of JD Group. After two and a half years and four IPO attempts, the company has transitioned from a unicorn to a publicly listed entity, becoming the sixth member of JD Group to enter the capital markets.
JD INDUSTRIALS, which originated from JD Group's enterprise-focused government and corporate business in 2017, was established as an independent unit to address inefficiencies and lack of coordination in traditional industrial supply chains. The company embodies JD Group's "technology and service-based supply chain" strategy and aligns with Richard Liu's "Ten-Section Sugarcane Theory," emphasizing end-to-end efficiency improvements through digital integration.
China's industrial supply chain is at a critical juncture of transformation. Despite a digital procurement penetration rate of just 6.2% in 2024, the market size has already exceeded 3 trillion yuan, presenting vast opportunities for growth. JD INDUSTRIALS has emerged as a key player in this evolving landscape.
**High-Growth Performance: The "Taipu" Solution Unlocks Supply Chain Efficiency** According to its prospectus, JD INDUSTRIALS has built a service network covering 80 product categories and over 8.11 million SKUs, connecting more than 158,000 manufacturers, distributors, and agents. The company serves over 11,100 core industrial enterprises and millions of SMEs, including approximately 60% of China's Fortune 500 companies and 40% of global Fortune 500 firms operating in China.
The "Taipu" integrated digital-physical supply chain solution is central to JD INDUSTRIALS' growth. This solution, comprising four digital modules—product, procurement, fulfillment, and operations—creates a "digital highway" linking supply and demand. For example, the "Mercator" standardized product database has helped clients reduce procurement costs significantly. During the 2025 "Double 11" shopping festival, JD INDUSTRIALS' hardware division saw a 100% year-on-year increase in sales and a nearly 50% rise in users, demonstrating the market's acceptance of standardized models.
**From Supporting Role to Lead Actor: MRO+BOM Creates Full-Scenario Service** Traditionally, industrial supply chain providers focused on MRO (Maintenance, Repair, and Operations) procurement, playing a supporting role. JD INDUSTRIALS has expanded its scope by integrating MRO and BOM (Bill of Materials) procurement, extending services from auxiliary production to core production processes.
Prospectus data shows that JD INDUSTRIALS' revenue primarily comes from MRO and BOM product sales. From 2022 to 2024, general MRO product revenue grew from 9.4 billion yuan to 11.1 billion yuan, while specialized MRO revenue surged from 2.7 billion yuan to 6.5 billion yuan. BOM product revenue also doubled from 800 million yuan to 1.6 billion yuan.
**Dual Engines for the Future: AI Empowerment and Global Expansion** To address long-standing challenges in industrial supply chain digitization, JD INDUSTRIALS has adopted a dual-engine approach combining industrial AI models with supply chain applications. In May 2025, the company launched JoyIndustrial, the industry's first supply chain-centric AI model, trained on data from over 8.11 million industrial SKUs and 40+ sub-sector practices.
Internationally, JD INDUSTRIALS has prioritized Southeast Asia as its first overseas market, with established operations in Brazil, Thailand, Indonesia, Malaysia, Vietnam, and Saudi Arabia. The company's global strategy focuses on three phases: accompanying Chinese enterprises abroad, localizing operations, and achieving integrated global governance.
Proceeds from the IPO will be used to enhance supply chain capabilities, strategic investments, cross-regional expansion, and working capital. As industrial digitization enters a golden era, JD INDUSTRIALS aims to lead China's supply chain into a new phase of efficiency and resilience on the global stage.
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