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IPO That Gives Access to China's Growing e-commerce
About the company
JST Group Corporation Limited is a technology company focused on developing and providing software solutions for the Chinese e-commerce sector. Its main activity is offering a comprehensive cloud platform that enables merchants to efficiently manage sales, orders, inventory, logistics, and customer service across dozens of online channels. The platform connects merchants to more than 400 e-commerce platforms worldwide, significantly above the industry average. The system provides centralized operations management, automated order processing, and real-time data synchronization. As of June 2025, JST had 92,600 active SaaS customers, processed an average of 65 million orders per day, and reached peak daily capacity of 230 million orders. The company provides essential infrastructure for large and mid-sized online retailers seeking to operate efficiently across multiple markets simultaneously.[1]
IPO Proceeds to Be Primarily Allocated to R&D
The company plans to list on the Hong Kong Stock Exchange through one of the largest technology IPOs of the year. JST aims to raise HKD 2.09 billion (approximately $267 million) by issuing 68.17 million shares at an offer price of HKD 30.60 ($3.94) per share. Trading is scheduled to begin on October 21, 2025. The underwriters are China International Capital Corporation (CICC) and JPMorgan Securities, with other major investors also expressing interest. Proceeds from the IPO will be allocated strategically: 55% for research and development to enhance product capabilities and broaden the offering, 25% for sales and marketing expansion, 10% for strategic investments and acquisitions, and 10% for general corporate purposes. This plan underscores the company’s focus on technological innovation and expansion both domestically and internationally.[2][3]
Market Outlook Indicates Growth Potential
The sector in which JST operates benefits from several favourable trends. China’s online retail sales reached CNY 16.5 trillion (approximately $2.31 trillion) in 2024 and are forecast to grow at an average annual rate of 7.3% to CNY 23.5 trillion (approximately $3.29 trillion) by 2029. E-commerce merchants’ IT spending is expected to increase from CNY 137.7 billion (approximately $19.3 billion) in 2024 to CNY 252.9 billion (approximately $35.4 billion) in 2029. SaaS ERP penetration remains relatively low at 1.6%, suggesting significant room for growth. Another supportive factor is government policy promoting digital infrastructure and SaaS adoption at the enterprise level. These factors create a strong market foundation for JST’s continued growth.[4][5]
Financial Results
JST has so far published its financial results only on an annual basis, and these are not publicly available directly from the company. According to equalocean.com, citing data from China Investment Corporation (CIC), the results for 2022–2024 reflect a typical SaaS growth trajectory, with emphasis on expansion and gradual efficiency improvements. Revenue grew from CNY 520 million (approximately $72.8 million) in 2022 to CNY 690 million (approximately $96.6 million) in 2023, and further to CNY 697 million (approximately $97.6 million) in 2024. Gross margin improved significantly from 52.3% in 2022 to 62.3% in 2023 and remained stable in 2024, indicating economies of scale and higher productivity. The company generated net losses during the period due to heavy investments in product development and customer acquisition, typical of fast-growing tech firms. In 2022, the net loss was CNY 250 million (approximately $35 million), increasing to CNY 490 million (approximately $68.6 million) in 2023 and 2024.
The sales and marketing expense ratio fell from 60.1% of revenue in 2022 to 49.3% in 2023, while R&D expenses declined from 44.8% to 33.6%, signalling improving operational efficiency. In 2024, these ratios stabilized alongside maintained margins and improved productivity. Overall, JST demonstrates stable revenue growth, rising gross margins, and a declining relative cost base, with persistent losses reflecting planned investments in future profitability.[6]*
Conclusion
The company’s outlook is closely tied to the ongoing digitalization of Chinese commerce, rising IT budgets among merchants, and low SaaS ERP market penetration. The strategic deployment of IPO capital aims to strengthen JST’s technological leadership and expand its market reach. For Ozios clients, the JST Group IPO represents a mix of short-term volatility typical of successful listings and long-term sector growth potential supported by clear macroeconomic and technological trends.
*Past performance is not a guarantee of future results
[1] https://www.etnet.com.hk/www/eng/stocks/ci_ipo_detail.php?code=06687
[2] https://thebambooworks.com/brief-jst-launches-267-million-hong-kong-ipo/
[3] https://finimize.com/content/jst-group-aims-for-hk209-billion-in-hong-kong-ipo
[4] https://www1.hkexnews.hk/app/sehk/2025/107390/a126107/sehk25092902974.pdf
[5] https://thebambooworks.com/jst-group-shows-theres-still-growth-potential-in-chinas-tough-e-commerce-market/