Share Price Plummeted 5 Years Loss 30 Billion Jingdong Lowest Closing Record Since Listing

Over the past month, Jingdong's share price has continued to fall.

Last week, the lowest closing price was $22.11, almost the lowest closing price since listing.

It is only a step away from the issue price of US $19 at IPO on May 2014.

According to the earnings data, over the past 5 years, the cumulative loss of Jingdong accounts for more than 18 billion yuan, and the loss attributable to shareholders of the parent company is more than 31 billion yuan.

These losses do not all come from business, but for company shareholders, book losses will sooner or later become a real loss.

Faced with continuous losses and falling share prices, is Jingdong really failing?

Heaven and Hell: Jingdong is breaking through.

Market value hit a record high

When Jingdong was in the US IPO, it was largely regarded as the Chinese version of Amazon.

But when the stock price of Jingdong has fallen repeatedly, Amazon's share price has hit a new high. Over the past two years, the share price of the two companies has gone through a very different trend.

By the end of last week, Jingdong's total market capitalization was about $31 billion 100 million, down about 20 billion US dollars from the peak, and its share price was even lower than the closing price of IPO in May 2014.

Over the same period, Amazon's share price has climbed steadily, reaching a record high this month, with a total market value of more than 335 billion US dollars. Since May 2014, its market value has increased by more than 185 billion.

Jingdong's current market capitalization is less than 1/10 of Amazon's.

In the past two years, Amazon's newly increased market value is equivalent to six Jingdong.

In fact, the total market capitalization of Amazon today is more than that of Amazon.

The total sum of Baidu and Jingdong three is still about 50000000000 dollars.

Is Ali Suning allied Jingdong's killer weapon going to fail?

Last year, Ali and Suning formed a strong blow to Jingdong through mutual alliance, at least in terms of share price performance.

After the announcement of Ali Suning's Alliance in August 2015, Jingdong's share price plummeted. The biggest drop in the month was nearly 40%, and its market value evaporated to nearly 20 billion dollars.

The alliance between Ali and Suning has also manifested itself in the Jingdong's impact on the operational level. Jingdong's efficiency advantage towards Suning is facing the pressure of digestion.

Jingdong has been able to survive over the past 10 years and has been growing from confrontation with Suning, Gome and other direct competitors. The key lies in its higher operational efficiency.

As long as the inventory turnover days are shorter than the accounts payable turnover days, even if there is no profit on the books, positive cash flow can still be achieved.

The business mode of Jingdong is fundamentally different from Ali. Jingdong is directly handling goods, and is the same as Suning Gome, which is a standard retail mode, but only with different channels.

The core of competition is retailers' turnover efficiency.

In 2012, Suning's inventory turnover lasted for 68 days, while Jingdong was only 35.7 days. Jingdong's inventory turnover speed was two times that of Suning.

Until the ASU alliance, the Jingdong maintained a general turnover advantage over Ningdu.

But this advantage changed at the end of 2015. With the help of Alibaba and its many years of reform, the gap between the stock market turnover of Suning and Jingdong in the first quarter of 2015 and the first quarter of 2016 is shrinking rapidly.

In 2015, Suning's inventory turnover lasted for 46.63 days, while Jingdong was 37.52 days. Although there was still a gap, it had been reduced to less than 10 days.

The impact of ASU's Alliance on Jingdong in the capital market has been demonstrated for six months. The impact of the operational level is beginning to show. How does Jingdong respond?

Growth has slowed down, after 200 billion still profit hopeless?

Although revenue is still growing rapidly, the growth rate of Jingdong has been significantly reduced.

Revenue growth declined from 95.8% in 2012 to 57.6% in 2015, and the growth rate in the first quarter of 2016 was only 47.3%.

This growth rate is still slow, but Suning's online sales are increasing at a higher rate after gaining Ali's holdings, with an increase of nearly 95% in 2015.

In the first quarter of 2016, the sales growth of Suning online reached 99.6%, almost two times that of Jingdong.

In the first quarter of 2016, the sales volume of Suning online has reached 14 billion 100 million yuan, which has exceeded the single quarter revenue of Jingdong in 2013.

Although Suning has also fallen into substantial losses since last year, at least market share has begun to pick up growth.

At the same time, the gap between Jingdong and Suning in cost control level is also narrowing.

Suning and

The cost rate is basically at the same level.

Suning is moving towards the line, while Jingdong is moving towards the bottom line.

Both online and offline mode, the two have invested a lot in the field of logistics and warehousing.

In a sense, the two companies are becoming more and more like.

When Jingdong and Amazon's share price went out of this great direction this month.

Whether Wall Street analysts or Chinese investors keen to invest in US stocks, there are obvious divisions in Jingdong's views.

The bearer thinks Jingdong is still unable to make profit when its annual sales close to the 200 billion mark, and the prospect is dim. Many of them insist that Jingdong's strategic losses will eventually come to light, the value is seriously underestimated, and Jingdong will be compared with Amazon.

Amazon has maintained a fragile profit and loss balance over a long period of time, competing for market share through strategic losses.

However, in the latest quarterly report, Amazon's profit has exceeded 500 million US dollars, and the income of new business such as cloud computing and media has been as high as 30%.

In a sense, Amazon is no longer a simple e-commerce company.

Will Jingdong really become the second Amazon?