After a two-year journey with some twists, JD Industrials (HK07618) officially listed on the Hong Kong Stock Exchange on December 11. At the time of writing, its shares traded at HK$14.09, giving it a market cap of HK$37.87 billion.
JD Industrials becomes the sixth publicly traded company under the JD umbrella, following JD Group, Dada Group, JD Health, JD Logistics, and Deppon Logistics. Unlike its peers, however, JD Industrials operates primarily in the B2B space and has long been regarded as one of JD’s "most secretive unicorns."
According to its prospectus, JD Industrials serves participants across industrial supply chains, covering manufacturing, energy, transportation, and other sectors. While its business—spanning industrial procurement, sales, and digital supply chain solutions—may not sound glamorous, it represents JD’s most concentrated "experiments" in supply chain innovation.
Richard Liu, JD Group’s founder and chairman, emphasized in a recent discussion that all JD businesses revolve around supply chains. This year, JD has aggressively expanded into food delivery and travel services, leveraging their underlying supply chains. The listing of JD Industrials further strengthens JD’s supply chain ambitions and B2B operations.
**A HK$37.87 Billion Market Cap: JD’s Sixth Listed Entity** Data from CIC shows that JD Industrials ranked first in China’s MRO procurement services market by transaction volume in 2024, nearly tripling the size of its closest competitor. Its 2024 transaction volume reached RMB28.8 billion.
Launched as an independent unit under JD Group in July 2017, JD Industrials became a top-tier category the following year. It completed Series A and B funding rounds in 2020 and 2023, respectively, attracting investments from Sequoia China and Middle Eastern capital.
Financial disclosures reveal steady growth: Revenue rose from RMB14.1 billion in 2022 to RMB20.4 billion in 2024, with a CAGR of 20.1%. For the first eight months of 2025, revenue hit RMB14.1 billion, up 18.9% YoY. Adjusted net profit grew at a 12.8% CAGR over 2022–2024, reaching RMB910 million in 2024 and RMB500 million in H1 2025.
Revenue streams include product sales (industrial goods like MRO and BOM products) and services (platform transactions and ads). Product sales surged from RMB12.9 billion in 2022 to RMB19.2 billion in 2024, while service revenue stabilized around RMB1.2 billion annually.
**Building a "Highway" for Industrial Supply Chains** Among JD’s six listed entities, JD Industrials completes the B2B puzzle. By June 2025, it served over 11,000 key enterprise clients and millions of SMEs, including 60% of Fortune 500 companies in China.
Pan Helin, an expert at China’s Ministry of Industry and Information Technology, noted that JD Industrials rounds out JD’s supply chain ecosystem—spanning B2C (JD Retail), C2M (JD Jingzao), B2B (JD Industrials), and infrastructure (JD Property). This maximizes JD’s coverage of both B2B and B2C markets.
Ding Deming, VP of JD Industrials, explained that the company’s model focuses on eliminating inefficiencies in supply chains, reclaiming wasted profits to reinvest in R&D and manufacturing capabilities. He likened JD Industrials to a "highway" connecting industrial supply chain players, emphasizing its role as a digital infrastructure builder.
Li Chengdong, founder of Dolphin Think Tank, highlighted JD Industrials’ strategic importance within JD’s ecosystem, complementing core businesses like retail and logistics. Unlike B2C’s price-driven competition, B2B success hinges on supply chain solutions and services—areas where JD excels.
**Global Expansion: Opportunities and Challenges** JD Industrials’ IPO raised approximately HK$2.83 billion (net proceeds), with 35% earmarked for supply chain enhancement, 25% for geographic expansion, 30% for M&A, and 10% for working capital.
Li sees overseas markets as a key growth avenue, given fierce domestic competition and the global rise of Chinese manufacturing. JD Industrials has already supported over 100 Chinese enterprises expanding into markets like Mexico, Indonesia, Hungary, and Thailand, offering full supply chain托管 services.
Chen Esheng, JD’s VP and head of JD Industrials’ international operations, stressed that Chinese出海 clients are the priority for building global supply chain infrastructure. The company plans to explore overseas physical stores starting 2025, targeting key accounts before expanding to SMEs and local manufacturers.
However, Chen cautioned against rapid overseas scaling, emphasizing the need to solidify operations, compliance, and organizational capabilities first. "Global expansion is a one-way street," he said, underscoring JD Industrials’ focus on sustainable, deep-market penetration.
Li noted that JD’s strategy of spinning off business units for separate listings reflects its broader capital play. While diversification may dilute focus and valuations, JD’s in-house supply chain and logistics capabilities remain a unique advantage.
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