New stock outlook | The explosion of the income side cannot hide potential challenges, is the new growth curve the "life-saving straw" for Xinyi Linhe?

In recent years, representative enterprises in the field of MRO procurement and digital supply chain services in China have successively knocked on the door of the capital market - DongGuan YiHeDa Automation (301029.SZ), JD INDUSTRIALS (07618), ZKH Group Limited Sponsored ADR (ZKH.US) have successively listed, each heading to different stages, making the industry landscape increasingly clear. Now, a new force has joined this thriving track: on January 30th, two MRO procurement enterprises from Shanghai - Yigou Gongpin and Xinyilinhe Shuangxing, both submitted listing applications to the main board of the Hong Kong Stock Exchange on the same day. Yigou Gongpin is exclusively sponsored by Agricultural Bank International, and Xinyilinhe is exclusively sponsored by Huatai International. As the protagonist of this article, Xinyilinhe can be said to be a "unique presence" in the MRO procurement track. Its dual-wheel drive mode of "platform + manufacturing" significantly differentiates it from pure platform or pure circulation type players. It has completed the strategic elevation from "connecting transactions" to "defining supply", telling a new industrial story to the capital market. However, looking at its performance, Xinyilinhe has still not emerged from the loss dilemma. In the first three quarters of 2023, 2024, and 2025, the company's adjusted net losses reached 279 million yuan, 326 million yuan, and 168 million yuan respectively. This means that in the past nearly three years, its accumulated losses have reached 773 million yuan. On one side is the unique narrative leading industry change, on the other side is the continuously expanding loss figures. In this context, whether Xinyilinhe's new story of "platform + manufacturing" can truly win market recognition and trust is undoubtedly a key proposition worth further exploration. Behind the merger and acquisition into the manufacturing business, there are 9 rounds of financing and 4.45 billion yuan of redeemable debt Established in 2013, Xinyilinhe's development history can be said to be a vivid epitome of China's industrial goods (MRO) digital wave. The company has completed a key transformation from being a "traffic catcher" to an "industry restructurer", with its course clearly divided into two major strategic phases. The first phase is from 2015 to 2022, during which Xinyilinhe's core development was focused on building an integrated digital platform and fulfillment network through Wuxi Online Offline Communication Information Technology Co., Ltd., laying the foundation for nationwide services. In 2015, the company launched the "Ruigu Mall" online platform, using a digital approach to enter the traditional decentralized hardware and electromechanical market. Subsequently, the company's strategic focus quickly extended from online to offline entity operations: between 2016 and 2018, the company established a warehouse in the East China region, established a self-operated warehousing and distribution system, and launched its own WMS/TMS system, achieving digital control of warehousing and distribution, expanding business from Shanghai to the East and Central China regions. From 2020 to 2022, Xinyilinhe's expansion accelerated comprehensively. By continuously building a warehousing and logistics network, the business covered key manufacturing areas in South China, Southwest, and other regions, serving major markets nationwide and building a national warehousing and distribution framework to support its e-commerce platform. Since 2023, Xinyilinhe has entered the second phase of development, that is, strategic elevation and model innovation, advancing deeply into upstream manufacturing. Specifically, 2023 was a milestone year in Xinyilinhe's development history: while exploring cross-border e-commerce, the company completed the acquisition of Shanghai and Zong Welding Equipment Co., Ltd. This was not a simple business expansion, but by holding a controlling stake in the core category manufacturer, the company for the first time reached deep into the production process and controlled the core of the supply chain. By 2024, Xinyilinhe's strategic path became clearer. The company further acquired Zhejiang Minglei Lithium Electric Tools Company, strengthening its independent manufacturing capabilities in the core category of power tools. Thus, Xinyilinhe's dual-wheel drive mode of "platform + manufacturing" officially took shape, transforming the company from a leading MRO digital circulation platform to a deep participant in and restructurer of the industrial chain. This unique evolutionary path marked its transcending of the traditional e-commerce category, establishing a unique competitive barrier in the industrial internet field through the combination of digitization and manufacturing capabilities. According to the prospectus, Xinyilinhe's digital platform business currently offers about 3.4 million SKUs covering 26 product series. From 2023 to 2025, the cumulative goods transaction value of Xinyilinhe's digital platform reached 8.5 billion yuan, and the company established cooperation with over 3,000 MRO product manufacturers and suppliers, covering more than 220,000 downstream customers. In terms of manufacturing business, Xinyilinhe has built a diversified product portfolio, covering welding machines, lithium-ion electric tools, and related products (including compatible battery packs, laser measurement tools, and garden tools). This business can serve a wide range of overseas customer groups through the OEM/ODM model, including brand owners, distributors, and retailers, with a focus on customers in North America, Europe, and South America regions. According to Zhishi Consulting data, as of September 30, 2025, Xinyilinhe's downstream customer network covers over 220,000 retail hardware stores nationwide, with a penetration rate exceeding 20%. In terms of total value of goods transactions, Xinyilinhe ranks fifth among online MRO procurement service providers and the second largest online secondary terminal MRO procurement service provider. Behind Xinyilinhe's leading market share is the strong support of various capital forces in the primary market. According to the prospectus, by 2022, Xinyilinhe had completed 9 rounds of financing, and in 2025 conducted capitalization issuance and converted into a limited company. After multiple rounds of financing, Xinyilinhe has built a shareholder lineup with diverse backgrounds and synergies. The largest institutional shareholder is RG SPV Limited, wholly owned by the Ontario Teachers' Pension Fund, holding 18.74% of the shares; Panton Investments controlled by Chunhua Capital holds 9.73%, and Source Code Capital, Zhongding Capital, and Summit Partners hold 9.01%, 7.89%, and 7.39% respectively. In addition, Taikang Life, as a representative of the insurance capital, holds 3.80%, and Jia...