“First Industry-Internet Stock” IBI Releases Half-Year Report: Revenue Up 70% YoY

Date: Aug 20,2019 Source：Beijing United Information Technology Co., Ltd

IBI (603613.SH) released its half-year report this evening showing that from January to June 2019, the company recorded operating revenue of RMB 2.492 billion, up 70.77% year on year; net profit attributable to the parent of RMB 65.0075 million, up 56.50%; and operating cash flow of RMB 20.0876 million, up 226.39%. All major financial indicators exceeded projections disclosed in the IPO prospectus.

IBI was officially listed on July 30, 2019, with core operations in B2B e-commerce. Positioned as a comprehensive B2B services platform, IBI is grounded in Industrial E-commerce and powered by internet data, providing online trading of industrial goods and raw materials, business information services, and internet technology services to industry clients.

According to the report, growth was driven mainly by a sharp increase in online merchandise transactions on IBI’s B2B vertical e-commerce platforms—Toodudu (TDD), Wdoodoo (WDD), and Boododo (BDD). During the period, IBI accelerated transaction scale and industry influence across the “Duoduo” platforms by: (1) advancing an upstream core-supplier strategy and a downstream group-purchasing strategy; (2) deepening into verticals such as the titanium industry, alcohol/chemical chain, soda ash, and base paper to expand single-product advantages and market share; (3) extending multi-category offerings, supply-chain reach, and user repeat purchases; and (4) rapidly rolling out SaaS services such as cloud ERP, smart logistics, and e-contracts. As a result, TDD, WDD, and BDD achieved rapid growth in transaction volume, revenue, and profit.

Per the prospectus, from 2015 to 2018 the company achieved a 162.64% CAGR in operating revenue and a 107.95% CAGR in net profit. The latest half-year report maintains this high-growth trajectory and further strengthens profitability.

IBI’s main businesses include the B2B information service platform IBI Resource Network, the vertical e-commerce platforms TDD/WDD/BDD, and an “internet+” technology services segment, which reinforce one another through strong value synergy. Built on 10+ years of B2B service experience, industry resources, and a broad membership base—especially in coatings/chemicals, hygiene products, glass, fertilizer & agri-inputs, industrial robotics, NEVs, new materials, and environmental engineering—the IBI Resource Network underpins the development of vertical e-commerce. Starting with TDD and extending to WDD, BDD, and reserve areas, each advantaged sector team can be incubated into an independent vertical platform, providing core support in industry expertise, resources, teams, and member conversion. The “internet+” tech services arm originates from the technology strengths of the Resource Network and the Duoduo platforms. Together, these segments enable efficient cross-promotion and traffic sharing, customer conversion, and shared technical capabilities.

Rooted in more than a decade of professional information-service experience and client accumulation in coatings/chemicals, hygiene products, and glass, TDD, WDD, and BDD were built from downstream demand with a highly vertical and differentiated focus. Through strategies such as single-product breakthroughs, group procurement, category repurchase, one-stop sourcing, sub-terminal alliances, core-supplier partnerships upstream, and supply-chain extension, the Duoduo platforms have rapidly consolidated market share and a strong first-mover advantage. With deep, sector-specific technology accumulation and platform R&D, IBI delivers cloud ERP, smart logistics, e-contracting, and other transaction-informatization services that form a clear technical edge.

In October 2018, IBI was selected as a National Pilot Enterprise for Supply Chain Innovation and Application by eight ministries including MOFCOM, MIIT, PBOC, and CBIRC. In December 2018, the Duoduo e-commerce business was recognized—under MIIT’s guidance—as an Outstanding Industrial E-commerce Platform Case.

Looking ahead, IBI will align with national priorities in industrial e-commerce, industrial internet, supply-chain innovation & application, and platform economies, and vigorously advance its industry-internet strategy: take B2B vertical e-commerce as the core, with the B2B information platform and internet+ tech services as dual wings, supported by a nationwide sales system to drive rapid growth. By upgrading e-commerce platforms, developing SaaS systems, and building an industry-internet R&D center, IBI will strengthen technology-driven capabilities, promote deep integration of internet/IoT with manufacturing, and help the sector reduce costs and increase efficiency to achieve high-quality development and efficiency transformation—thus building a leading industry-internet platform enterprise.