What is hidden behind JD.com's recent news keeps building 618

　　JD.com released its first quarter financial report for 2017. This financial report is blinding. The total revenue is 76.2 billion yuan, a year-on-year increase of 41.2%, and its net profit is RMB 1.4 billion, with a net profit exceeding the full year of 2016. As of March 31, 2017, JD.com's operating cash flow in the past 12 months was RMB 10.2 billion, a year-on-year increase of 405%. JD.com's free cash flow in the past 12 months was RMB 16.8 billion, a year-on-year increase of 7.7 billion yuan in the same period last year. JD.com's market value has reached US$54.644 billion, and Baidu, which is also BAT, currently has a market value of US$63.243 billion. Some people joked online that JD.com is only one limit off when it exceeds Baidu. Although it is a joke, judging from the stock price trends of the two companies, it is a high probability event that JD.com's market value surpasses Baidu in 2017. There is a good line from Zhao Yi (Five Poems) that is passed down from generation to generation: There are talents in the country and each has led the way for hundreds of years. In the Internet era, it must be changed to: talents emerge in the world, and each of them has been leading the way for a few years.

　　1. Amazon's continuous profits have helped JD.com

　　The reason why JD.com has such a high recognition globally is that Amazon's development has made an indelible contribution. After 20 consecutive losses, it finally ushered in continuous large-scale profits. In August 2016, Amazon released its Q2 quarter financial report, showing that its revenue in the quarter was US$30.4 billion, better than the expected US$29.55 billion, a year-on-year increase of 31%; profit was US$857 million, a year-on-year increase of 9 times, reaching the highest level in history, and it was the third consecutive quarter to soar. Amazon's net sales in fiscal 2016 were $136 billion, up 27% from $107 billion last year, with net profit of $2.4 billion, compared with net profit of $596 million last year.

　　2. JD.com has been doing frequent moves recently

　　I don’t know if you have noticed that JD.com has made many moves this year, and its moves are very high-profile this year. First, it was announced in early March that JD Finance had achieved VIE demolition work. JD Finance no longer owns JD Finance's legal ownership. JD Finance will become a full domestic company, which will clear policy obstacles for JD Finance to conduct business in China. Otherwise, licenses such as bank licenses, payment licenses, credit licenses, etc. will basically have no chance of JD.com. Of course, everyone can understand with their feet that no longer owning ownership in the legal sense is not that it is not owned in the actual sense. JD Finance is still surnamed Liu, and Liu Qiangdong still has the final say. Some people came to a conclusion that JD Finance's valuation may exceed 50 billion from the spin-off process. Of course, the 50 billion yuan is RMB, which is incomparable to Ant Financial's valuation of 60 billion US dollars. Next, it announced that JD Logistics will be independent and established an independent logistics sub-group. Note that it is a subsidiary group, not a subsidiary. Wang Zhenhui, former senior vice president of JD Group and head of JD Mall operation system, will serve as CEO of JD Logistics Sub-Group and report to Liu Qiangdong, Chairman and CEO of JD Group. By the way, there was also a JD Kindergarten opening interspersed in the middle, officially providing benefits to JD employees, and Liu Qiangdong's glorious image of a conscientious boss was immediately established.

　　By the way, in April, something was announced, announcing the establishment of a group CMO system, appointing Xu Lei as the CMO of JD Group, and reporting to JD Group CEO Liu Qiangdong. The Group's CMO system will be fully responsible for the integrated marketing functions of JD Group including malls, finance, insurance, logistics, JD Cloud and other businesses, as well as the Group's overall domestic market public relations strategy planning functions.

　　It seems that the new CMO system has started working since the beginning of this year.

　　Since then, JD.com has never stopped voices and has officially become a member of AAFA (American Clothing and Footwear Association), and even its equity structure has been exposed and talked about.

　　Once, Kunpenglun was still thinking, was JD.com doing this for this year's 618?

　　From this point of view, it seems that the existence of the stock price is more practical.

　　3. JD.com has also learned bad things

　　Alibaba has always been a master of capital play. Although many listed companies are doing things like splitting their businesses and raising funds for listing independently, Alibaba still has to play the scale. JD.com has been doing business steadily before, comparing GMV and 211 limited time delivery. Finally, it was found that the money for investors was the most reliable.

　　After independent of its two huge losses in finance and logistics businesses, JD.com's financial report will be better and better. It is much easier to make money through the stock market than to make money by relying on corporate profits.

　　Although JD Finance, which was split out, cannot be compared with Ant Financial, at least there are conditions to carry out more business. After all, the development of Ant Financial is there, and this is JD Finance’s goal. Maybe when will it be operated and it can bring back a lot of money.

　　As for the independent logistics system, the prospects are also very broad. After SF Express went public, the market value has exceeded 200 billion yuan. JD Logistics has always been benchmarking SF Express and has so many warehousing. If you develop business other than JD's own system, it might be the next SF Express.

　　Obviously, JD.com has been enlightened recently.

　　If JD.com continues to split its business and operate independently in the future, there will be no surprises. Who would be willing to get out of the fast lane of capital operation after going up?

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