In recent years, leading companies in China's MRO procurement and digital supply chain services sector have successively entered the capital markets—Dongguan Yiheda Automation Co.,Ltd. (301029.SZ), JD INDUSTRIALS (07618), and Zhenkunhang (ZKH.US) have gone public on different exchanges, gradually clarifying the industry landscape. Now, another new player has joined this rapidly growing sector: on January 30, two Shanghai-based MRO procurement firms—Yimaigongpin and Xinyi Linhe—simultaneously submitted listing applications to the Main Board of the Hong Kong Stock Exchange. Yimaigongpin is solely sponsored by ABC International, while Huatai International acts as the exclusive sponsor for Xinyi Linhe.
As the focus of this analysis, Xinyi Linhe stands out as a unique presence in the MRO procurement field. Its dual-drive model of "platform + manufacturing" significantly differs from pure platform or distribution-focused players, representing a strategic evolution from "facilitating transactions" to "defining supply," presenting a fresh industrial narrative to the capital markets.
However, a review of its financial performance reveals that Xinyi Linhe has yet to escape losses. For 2023, 2024, and the first three quarters of 2025, the company's adjusted net losses amounted to 279 million yuan, 326 million yuan, and 168 million yuan, respectively. This indicates a cumulative loss of approximately 773 million yuan over the past nearly three years.
On one hand, there is a unique story of leading industry transformation; on the other, there are continuously widening losses. Against this backdrop, whether Xinyi Linhe's "platform + manufacturing" narrative can genuinely win market recognition and trust remains a critical question worthy of in-depth examination.
Behind the manufacturing push through acquisitions lie 9 financing rounds and 4.445 billion yuan in redeemable liabilities. Established in 2013, Xinyi Linhe's development history vividly mirrors China's industrial MRO digitalization wave. The company completed a crucial transition from a "traffic captor" to an "industrial restructurer," with its journey clearly divided into two strategic phases.
The first phase, from 2015 to 2022, focused on building an integrated online-offline digital platform and fulfillment network, laying the foundation for nationwide service. In 2015, the company launched the "Rigu Mall" online platform, digitally entering the traditionally fragmented hardware and electromechanical market. Subsequently, its strategic focus rapidly extended from online to offline operations: between 2016 and 2018, it established an East China central warehouse, developed a self-operated warehousing and distribution system, and launched its self-developed WMS/TMS systems, achieving digital control over storage and delivery, expanding from Shanghai to East and Central China.
From 2020 to 2022, Xinyi Linhe's expansion accelerated comprehensively. Through continuous construction of its warehousing and logistics network, it extended services to key manufacturing regions like South and Southwest China, achieving coverage of major national markets and building a nationwide storage and distribution backbone supporting its e-commerce platform.
Since 2023, Xinyi Linhe entered its second development phase, characterized by strategic elevation and model innovation, moving upstream into manufacturing. Specifically, 2023 marked a milestone year: while exploring cross-border e-commerce, the company completed the acquisition of Shanghai Hezong Welding Equipment Co., Ltd. This was not merely business expansion but represented its first deep foray into production by controlling a core category manufacturer, securing the supply chain's heart.
By 2024, Xinyi Linhe's strategic path became clearer. It further acquired Zhejiang Minglei Lithium Power Tools Company, strengthening its self-manufacturing capabilities in the core category of power tools. Thus, Xinyi Linhe's "platform + manufacturing" dual-drive model officially took shape, evolving from a leading MRO digital distribution platform into an integrator deeply participating in and restructuring the industrial chain.
This unique evolutionary path signifies its transcendence of traditional e-commerce boundaries, establishing distinctive competitive barriers in the industrial internet space through the combination of digital and manufacturing capabilities. According to its prospectus, Xinyi Linhe's digital platform currently offers approximately 3.4 million SKUs across 26 product series. From 2023 to the first three quarters of 2025, the cumulative GMV on its digital platform reached 8.5 billion yuan. The company has established partnerships with over 3,000 MRO product manufacturers and suppliers and serves more than 220,000 downstream clients.
In manufacturing, Xinyi Linhe has built a diversified product portfolio including welding machines, lithium-ion power tools, and related products (compatible battery packs, laser measuring tools, and garden tools). This business can serve a broad overseas clientele—brand owners, distributors, and retailers—primarily in North America, Europe, and South America via OEM/ODM models.
According to China Insights Consultancy data, as of September 30, 2025, Xinyi Linhe's downstream client network covers over 220,000 retail hardware stores nationwide, with a penetration rate exceeding 20%. By GMV, Xinyi Linhe ranks fifth among online MRO procurement service providers and is the second-largest online sub-terminal MRO procurement service provider.
Behind Xinyi Linhe's leading market position lies strong support from primary market investors. The prospectus indicates that the company completed 9 financing rounds by 2022, conducted a capital issuance in 2025, and converted to a joint-stock company in 2026. After multiple funding rounds, it has assembled a diverse, resource-synergistic shareholder base. RG SPV Limited, wholly owned by the Ontario Teachers' Pension Plan, holds 18.74% as the largest institutional shareholder; Panton Investments controlled by Primavera Capital holds 9.73%; Source Code Capital, Zhongding Capital, and CDH Investments hold 9.01%, 7.89%, and 7.39%, respectively; and Chengwei Capital holds 5.96%. Additionally, Taikang Life Insurance holds 3.80% as an institutional investor, and state-backed Jianfa Emerging holds 1.24%.
Notably, accompanying this financing is a heavy redemption agreement. As of September 30, 2025, Xinyi Linhe's books recorded redeemable liabilities of 4.445 billion yuan. According to terms, if the company fails to list successfully by January 1, 2028, and if investor redemption rights are not extended, it could face significant short-term repayment pressure.
Manufacturing has become the engine for revenue growth, yet several operational challenges remain prominent. Since entering its second development phase in 2023 by moving upstream into manufacturing, Xinyi Linhe has achieved sustained rapid revenue growth. Revenues for 2023 and 2024 were 505 million yuan and 877 million yuan, respectively. Revenue for the first three quarters of 2025 reached approximately 1.124 billion yuan, a surge of 166.61% year-on-year, indicating an accelerating growth trend.
This impressive revenue performance is driven by the explosive growth of the manufacturing business. Launched in 2023, the manufacturing segment recorded revenue of approximately 463 million yuan in 2024, immediately jumping to 52.7% of total revenue. In the first three quarters of 2025, manufacturing revenue reached about 850 million yuan, a dramatic increase of 493.63% year-on-year, accounting for 75.6% of total revenue and becoming the core driver of Xinyi Linhe's continued growth.
Geographically, with the manufacturing boom, Xinyi Linhe's overseas expansion is showing initial results. In 2023, domestic revenue accounted for 90.7% of the total, but by the first three quarters of 2025, this proportion had decreased to 63.9%, with Europe, the Americas, and other regions contributing 17.8%, 11.6%, and 6.6%, respectively. This indicates that the acquired manufacturing business is accelerating performance release and facilitating international expansion by serving a broad overseas client base through OEM/ODM models.
However, potential challenges facing Xinyi Linhe are also evident. Compared to the explosively growing manufacturing business, the development of the digital platform business appears relatively sluggish. Revenues from the digital platform were approximately 505 million yuan and 415 million yuan in 2023 and 2024, respectively. In the first three quarters of 2025, platform revenue was 274 million yuan, showing a slight decline compared to the same period in 2024.
Key operational metrics for the digital platform—cumulative GMV, order volume, and active user numbers—have shown clear upward trends since 2023, yet platform revenue has continuously declined. This significant divergence stems primarily from two reasons: first, Xinyi Linhe strategically promoted the platform model heavily in 2024, shifting some transactions from the high-revenue self-operated channel to the low-revenue platform channel; second, subsidies and price reductions to drive growth may have artificially inflated platform metrics.
Examining the market structure clarifies why Xinyi Linhe resorts to subsidies and price cuts to drive platform growth. According to China Insights Consultancy, in 2024, although Xinyi Linhe ranked fifth in China's online MRO procurement service market, its market share was only 0.9%, significantly lagging behind the leading players. Weak scale advantages create pressure on growth potential in a competitive landscape dominated by giants.
The online MRO procurement market is driven by both scale and brand effects. A lower ranking not only implies weaker bargaining power but also translates directly into sustained customer acquisition and retention pressures. To maintain its platform business amidst fierce competition, Xinyi Linhe has had to continuously invest heavily in sales and marketing. In 2023, sales and marketing expenses accounted for nearly 60% of total revenue, a direct reflection of this strategic cost.
Notably, this abnormally high expense ratio was only significantly diluted after the manufacturing business expanded rapidly. By the first three quarters of 2025, with manufacturing contributing 75.6% of revenue, the sales and marketing expense ratio was compressed to 16.79%. While this optimizes the overall cost structure, it also indicates that the digital platform business itself has not yet formed a sustainable, low-cost growth flywheel, with earlier growth heavily reliant on capital injection.
Therefore, whether manufacturing can become Xinyi Linhe's lifeline is crucial. However, it is premature to draw conclusions, primarily due to two uncertainties: First, the profitability of this business is volatile. In the first three quarters of 2025, its gross margin fell by 3.3 percentage points year-on-year to 14.8%. The company attributed this to the initial phase of expanding the Minglei brand into the domestic market, which has lower margins. Whether it can stabilize or improve gross margins amidst intense competition remains uncertain.
Second, the sustainability of the growth driver is questionable. The current explosive growth in manufacturing is largely due to short-term consolidation following acquisitions. Once this acquisition红利 diminishes, whether the company can rely on organic growth to continue expanding the market rapidly remains unproven. Therefore, excessive optimism about future growth rates is unwarranted.
Thus, Xinyi Linhe's development path is clear: after growth in its digital platform business stalled, the company took an alternative route through acquisitions to enter the manufacturing sector. While this strategy rapidly increased revenue scale and significantly diluted the period expense ratio, it has not reversed the company's persistent losses. The growth potential and profitability of the manufacturing business itself still require time to validate, and the fundamental operational challenges may not have disappeared.
One certain trend is that as manufacturing's contribution to revenue continues to expand, the market's valuation logic for Xinyi Linhe is subtly shifting from an internet platform towards a traditional manufacturer. This implies potential compression of its valuation multiples. This is both a pragmatic choice to address long-term losses and substantial redemption pressure, and a reflection of the difficulties inherent in its transformation journey.