A Glance at JD Digits' IPO Prospectus: Steady Growth in Profitability
The Shanghai bourse's Star Market has received the company’s paperwork, which reveals its recent outstanding financial performance.
JD Digits has filed the papers for IPO on Star Market in Shanghai. The company plans to issue 538 million shares that account for 10% of the total shares.
From 2017 to 2019, JD Digits posted revenue of CNY 9.07 billion, CNY 13.62 billion and CNY 18.20 billion. The figure in 2019 surpassed most of the listed companies on Star Market. It started to earn profits in 2018, with the net income recorded at CNY 130 million and 790 million in the last two years. The gross profit margin grew steadily from 2017 to the first half of 2020 from 54.69% to 67.08%. The investments in technology development have been increasing since 2017 as well.
The company’s business can be divided into three sections with the solutions provided to financial institutions (To F), merchants and businesses (To B), and governments (To G). At the end of June 2020, the revenue from the three sections accounted for the total figures of 41.48%, 52.37%, and 5.57%.
According to the prospectus, JD Digits defines itself as the first digital technology company on the Star Market that focuses on providing comprehensive solutions to businesses. At the end of June 2020, JD Digits had offered solutions to over 600 institutions in the financial service field that includes commercial banks, insurance companies, funds and securities companies. Also, in the business service field, it has helped over 1 million merchants, over 200,000 small to medium enterprises and over 700 large business districts on digital transformation. As for government services, the company has provided over 40 state-owned institutions with intelligent city system products, which covers over 300 cities and 600 million citizens.