Jingdong was founded in 1998 by Liu Qiangdong in Zhongguancun, Beijing, went to the United States in 2014 to list on the Nasdaq Stock Exchange, the annual turnover of $28.847 billion in 2015, now the market value of close to $40 billion, with Tencent, Baidu and other giants*** among the world's top ten ranking of Internet companies. It's hard to imagine that a company of this size is still unprofitable and has been losing money.
But after seeing Jingdong's financial statements, Jingdong's investors not only weren't shocked, but also showed great optimism, and some even increased their holdings of Jingdong's shares. Institutional investors are not like the average retail investor, see the short-term can rise to buy, bearish to sell. These professional financial analysts must have seen Jingdong's future market prospects to place such a big bet on Jingdong.
In fact, if we look closely at Jingdong's financial statements, we will find that Jingdong's turnover is growing year after year, and the rate of increase is still quite large. And the so-called loss is actually not an operating loss, but a loss due to more investment spending than profit. If it was an operating loss, it would mean that the company is really losing money and has worked hard to run its current business. But what we're seeing is that Jingdong is losing money because it's spending too much on investments, has very good cash flow, and isn't experiencing a major financial crisis or other major events.
In 2014, Jingdong invested in the home food club and Toutiao travel network; in 2015, Jingdong not only invested in hungry, easy car network, installment music, and additional investment in Toutiao travel network, but also led the investment in the daily orchard, invested in big data analytics company Zestfinance, invested in the Kingdee software, Yonghui Supermarket; in 2016, it also fully acquired the "1 store". It can be seen that Jingdong in in the layout of online tourism, catering online ordering, fruit categories and big data analysis, and, in addition to investing in other companies, Jingdong is also strengthening and expanding their own company's business, in addition to Jingdong Mall, which is already close to maturity, and is currently focusing on Jingdong Finance and Jingdong Cloud, with the intention of seizing the two national hotspots of finance and big data to grow the business.
For the development of the Internet, Jingdong is actually still in the growth stage, not yet to the maturity of stable profitability. Jingdong is doing a big layout, the initial investment is essential, the scale is large, the advantages of economies of scale will be revealed, once the cost down, profits will naturally go up, probably those shrewd investors also think so. Although the Jingdong investment in various industries has been more than ten billion dollars, but still need to step by step, well thought out.