Zhenkun Xing Industrial Supermarket, a Chinese industrial product procurement service platform, was successfully listed in the United States. On the evening of December 15, Zhenkun Bank officially landed on the New York Stock Exchange, ** as "ZKH", becoming the first Chinese MRO to go to the United States. 
According to the prospectus, the initial public offering of Zhenkun Bank** is 15$5 shares. On the first day of listing, Zhenkun Bank rose to a maximum of 17$05, ** at the same level as the issue price, with a market capitalization of 24900 million US dollars (about 17.7 billion yuan), is the largest IPO in the United States in two and a half years.
According to the information on the official website, Zhenkun Xing was established in 1998 by Chen Long, who obtained the first right to many internationally renowned brands of adhesives and lubricants at that time, and mainly did distribution; In 2008, the product direction was transformed. According to the prospectus, Zhenkun Bank's revenue model includes product sales model and market model, most of the revenue comes from the sales of MRO products under the product sales model, and there are also commissions earned by the market model through the platform to the top merchants who sell products. MRO refers to industrial supplies that are not production raw materials, and usually refers to materials and services that do not directly constitute products in the actual production process and are only used for maintenance, repair, and operation of equipment. At present, Zhenkun Xing's product line can be roughly divided into five categories: spare parts, chemicals, manufacturing parts, general consumables and office supplies.
There is a lot of room for development in the industry. The market size of China's MRO procurement services was 3,004.1 billion yuan in 2022, with a compound growth rate of 58%, which is expected to reach 3,976.6 billion yuan in 2027; The market size of China's **MRO procurement services will reach 235.4 billion yuan in 2022, with a compound growth rate of 292%, which is expected to reach 847 billion yuan in 2027. In 2022, the ** penetration rate was 78% and is expected to reach 213%。
According to the prospectus, in the first three quarters of 2020-2023, the operating income of Zhenkun Bank was 468.6 billion yuan, 765.5 billion yuan, 831.5 billion yuan, 62$7.7 billion; The corresponding net profit was negative, with a loss of 39.7 billion yuan, 109.4 billion yuan, 73.1 billion yuan, 32.5 billion yuan.
Zhenkun said that there is no guarantee that it will be able to generate net profit in the future, and its ability to achieve profitability mainly depends on the ability to improve gross margin, either by growing revenue at a faster rate or by reducing the cost of revenue or operating expenses as a percentage of net income, "and it may continue to lose money in the future." ”
Minsheng ** believes that MRO covers many subdivided industries, even the industry leader still has its ability margin, and each industry focuses on different; Even in the more mature U.S. market, the current market share of the U.S. region is still only close to 10%, and the industry has great potential for development.
Text: Beijing Youth Daily reporter Liu Shenliang.
Edited by Field.