JD.com Submits Fresh Application for Hong Kong IPO of Industrial Services Unit

JD.com has filed to list its industrial services subsidiary on the Hong Kong stock exchange, marking the fourth application by the Chinese e-commerce giant for an initial public offering of the unit in less than three years.

The group led by founder and chairman Richard Liu aims to list Jingdong Industrials, an asset-light provider of industrial supply chain technology and services and a partner of the JD Logistics fulfilment network, according to the Sunday filing. The most recent prior application, submitted in March of this year, lapsed after six months, as did the ones filed in October 2024 and March 2023.

Beijing-based JD.com intends to retain Jingdong Industrials as a subsidiary after the listing, with the parent group and entities owned by Liu as the controlling shareholders. JD.com currently holds a 78.84 percent stake in the unit.

“By adopting a differentiated business model and inheriting JD Group’s profound domain knowledge in supply chain management, we believe we are best positioned to spearhead an end-to-end digital transformation for the industrial supply chain,” Jingdong Industrials said.

Potential $500M Raise

No details were disclosed about the timeline, offer price or the size of the potential IPO, but Reuters reported Monday that JD.com was seeking to raise $500 million via an IPO of Jingdong Industrials as soon as the end of October. The agency cited two sources with direct knowledge.

Focused on procurement of goods used in maintenance, repair and operations at manufacturers and distributors, Jingdong Industrials had a sector-leading gross merchandise value in 2024 of RMB 28.8 billion ($4 billion), up 10.3 percent from the previous year and representing a market share of 4.1 percent, according to the filing.

After recording a net loss of RMB 1.3 billion in 2022, Jingdong Industrials posted net profits of RMB 4.8 million and RMB 761.6 million in 2023 and 2024, selected financial statements showed. The unit’s net profit of RMB 451.3 million in the first six months of 2025 marked a 55 percent jump from the comparable period a year earlier.

As in its previous applications, Jingdong Industrials acknowledged the risk of its overlap with HKEX-listed JD Logistics, which provides “a substantial part of our logistics and warehousing services”. JD.com raised $3.2 billion through the Hong Kong IPO of JD Logistics in 2021.

“Our business may be adversely affected, if we are unable to maintain good relationship with JD Logistics,” Jingdong Industrials said. “Besides, JD Logistics is a consolidated subsidiary of JD.com, one of our controlling shareholders, and thus we may have conflict of interest with JD Logistics and may not be able to resolve potential conflicts with JD Logistics on favourable terms to us.”

The IPO’s sponsors include UBS, Goldman Sachs, Bank of America’s Merrill Lynch Asia Pacific unit and Hong Kong-based Haitong International, per the filing.

Offshore Ambitions

JD.com’s JD Property real estate arm has moved aggressively to expand its overseas reach in recent months, having completed its first acquisition in Japan’s logistics sector last December with a two-warehouse buy in Chiba and Nagoya.

In April of this year, JD Property struck a deal to buy a Brisbane industrial estate from an ESR-led venture, with market sources who spoke to Mingtiandi confirming a deal value of A$240 million ($152.5 million). The transaction closed in June.

Nearer to home, JD.com acquired Hong Kong grocery player Kai Bo Food Supermarket in a HK$4 billion ($514 million) deal, according to local media reports in July, with the mainland giant said to have secured a 70 percent stake in the chain led by founder Lam Hiu-ngai.