Why did JD.com copy more homework and launch tens of billions of subsidies?
The answer may be found!
Two days ago, JD.com released its 2022 annual results.
After a year of hard work, it's time to hand over the transcript to investors, how did JD.com do in the exam?
To know that the answer is also very simple, just look at the performance of the capital market after the handover.
This is the performance of JD.com's US stocks after JD.com's earnings report, down 11.28%.
This is the performance of JD.com Hong Kong stocks after the earnings report, down 11.49%
In one day, the market value directly evaporated by more than 60 billion!
Seeing this stock price performance, it is not difficult to guess that this report of JD.com is not very good!
Say that the financial cat knows the meow of finance ~ 592 original content
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In fact, if you look at JD.com's revenue and profit alone, the performance is quite passable.
In 2022, JD.com will achieve a total revenue of 1,046.2 billion yuan, which is also the first time that JD.com's revenue has exceeded one trillion.
This revenue is 181.3 billion more than Ali, the nemesis next door.
This is also JD.com, with revenue surpassing Ali for the second consecutive year.
In terms of profits, after a rare loss of 4.467 billion yuan in 2021, JD.com finally turned a profit in 2022 and recorded a net profit of 9.691 billion yuan.
But it's better than not knowing, it's more frightening than one. The revenue is 181.3 billion more than Alibaba, but the profit is less than 40% of Alibaba.
In 2022, Ali recorded a net profit of 25.2 billion, down 56% year-on-year, but still 15.5 billion more than JD.com.
Looking at the profit performance of JD.com in the past five years, we will find that in the past two years, JD.com's profit level has been greatly weakened.
The reason for the sharp decline in profitability is mainly due to the large loss of new business.
At present, JD.com's business segment can be roughly divided into four parts:
JD Retail (self-operated business, platform business and advertising services), JD Logistics, Dada (real-time delivery and retail platform) and new business (JD Production, Jingxi, overseas business and technological innovation).
Among them, JD.com's retail business is the main contributor to JD.com's revenue and profit, accounting for 88.88% of the total revenue, and is the only profitable business of JD.com;
JD Logistics, although it finally achieved an operating profit of 528 million yuan in 2022, it is almost negligible;
Dada, with a loss of 1.122 billion;
Bigger losses, from new business.
In 2021, JD.com lost 10.6 billion yuan (operating loss) because of the new business, and JD.com suffered its first loss since 2017, losing 4.467 billion yuan that year.
In 2022, although the loss of new business has narrowed, it is still as high as 5.295 billion, and if it were not for the sale of development properties to make up for 1.379 billion yuan, the loss would be even more.
Speaking of which, everyone can understand why when Dongge said that he would launch tens of billions of subsidies a month ago, JD.com's stock price would fall so badly, right?!
Then again, with tens of billions of subsidies, JD.com may have no way back.
Why do you say that? Take a look at a few sets of data and you'll get the idea.
This is the GMV (gross business transaction) trend of JD.com in the past five years.
It can be seen that JD.com's GMV in 2022 may be the lowest growth rate ever seen by JD.com. JD.com, from a high growth of more than 25%, fell to a single-digit growth, only 5.6%.
Affected by this, JD.com's revenue has seen the lowest growth rate in many years, only 9.94%.
In terms of business type, JD Retail, which contributed the most to revenue and profit, also showed the lowest year-on-year growth rate in the past three years, only 7.34%.
In terms of income categories, the growth rate of commodity revenue has dropped from more than 25% to 6.06%.
If it were not for the high growth of service revenue to fill the gap, the performance of revenue would be more ugly.
However, the high growth rate of service revenue is actually declining.
In fact, JD.com's farewell to the era of high growth has long been hinted.
In November last year, Liu Qiangdong was.
It is mentioned that from 2023, JD.com executives will collectively reduce salaries, and correspondingly.
At the same time, he also said:
It can be seen that the bottleneck of performance growth faced by JD.com has been clearly visible. Where to find new business growth points has become the key to breaking the game.
In fact, it is not difficult to understand, on the one hand, the development of online shopping to today, may indeed have reached a peak;
On the other hand, the rise of Pinduoduo and the sudden rise of live streaming on major platforms such as Douyin and Xiaohongshu have also diverted the traffic and consumption originally belonging to Ali and Jingdong to a certain extent.
Now, do you know why JD.com's stock price fell after the results were released?! Why would Dongge rather lose money and sink the market, and even hesitate to copy more work and launch tens of billions of subsidies?!
Image from Visual China, authorized, Liu Qiangdong
However, can launching tens of billions of subsidies really play the role of Liu Qiangdong's ideal?!
At previous management training meetings, Liu Qiangdong listed a series of problems of JD.com, including JD.com's retail giving people, forgetting, executives (cost, efficiency, user experience) and so on.
The question is, is "low price" really the most important weapon for success? Low price, can JD.com fight one step ahead?
How long will it take to burn money to see results in the new business aimed at breaking through the sinking market?!
JD, is there any money to continue to lose ?!
Well, pay attention to the cat sister and interpret the financial report as soon as possible!