The title map is from Oriental IC
Jingdong, which has just stepped out of the double eleven, has ushered in another revelry of financial data.
Today (November 15th), JD.com released its third quarter results for 2019. If the last quarter’s financial report made Jingdong lifted its head, then the core results of the quarter may make it continue to be high in the capital market.
Overall, Jingdong’s net income in the third quarter of 2019 reached 134.8 billion yuan (about 18.9 billion US dollars), an increase of 28.7%. Under the US General Accounting Standards (GAAP) and non-GAAP (Non-GAAP), the net profit attributable to ordinary shareholders is profitable.
Growth is a keyword
The tiger sniff has written more than once. Because of the different disclosures, the meaning of GMV is not great. Regarding the overall revenue situation, the main data disclosed by Jingdong is net income.
Jingdong’s net income in the third quarter of 2019 reached 134.8 billion yuan (about 18.9 billion US dollars). Because of the “618” promotion in the second quarter, according to the cyclical law of Jingdong’s revenue, the expected decline in the previous quarter. However, net income increased by 28.7% year-on-year, which was a new high in the past five quarters compared with 20.9% in the first quarter of this year and 22.9% in the second quarter.
Among them, net service revenue (services provided to third-party sellers) reached 16 billion yuan (about 2.2 billion US dollars) in the quarter, up 47% year-on-year (the service revenue of Q3 in 2018 was 10.9 billion).
In the case of Jingdong no longer revealing the self-operated and three-party ratio data, the service income can reflect the growth of third-party sellers. It should be noted that in Q4 of 2018, Jingdong’s service revenue increased year-on-year.Compared with commodity sales revenue, it has doubled, and in the past quarter, Jingdong’s service revenue growth rate once exceeded the sales revenue of goods. This shows that the number of third-party sellers in Jingdong is still growing. After all, it is still a profit-oriented Jingdong, which is in the strategic transformation from selling goods to selling services.
About profitability, Jingdong announced that it has made 15 consecutive quarters of profit. The continued growth in profitability is a stimulant for JD to boost market confidence: under non-GAAP, Jingdong’s net profit attributable to ordinary shareholders is RMB 3.1 billion. 400 million US dollars), an increase of 160.6%.
However, a “net profit” or “non-Non-GAAP profit” through non-recurring gains and losses is not really a profit.
Based on the net profit of the returning mother, the profit of Q3 in 2019 was positive, but it fell, and the reason for the decline was that the non-operating profit and loss of -3.959 billion was recorded in the quarter (with business operations). No direct relationship with income and expenditure). Just as the net profit of Q3 in 2018 was 3.01 billion yuan, it was the same as the non-operating profit and loss of 3.429 billion yuan recorded in the report period. At this point, Jingdong has maintained its profit in the third quarter.
In addition to financial data, there are also active users to follow.
Jingdong’s active users declined for the first time last year: as of September 30, 2018, the number of active users per year (data from the past 12 months) was 305 million, 8.6 million less than June 30. However, the number of active users in the year has been boosted. Jingdong’s active purchases in the past 12 months were 334.4 million, an increase of 13 million from the same period in the second quarter, the largest in the past seven quarters. The increment.
It is also worth noting that Jingdong disclosed the relevant data of the moon for the first time in this financial report. According to the data of the three parties, in September, the monthly activities of Taobao and the multi-industry Jingdong were 666 million, 253 million and 115 million respectively. Although Jingdong did not disclose the specific amount, the financial report revealed that its September JD mobile terminal MAU (monthly active users) increased by 36% year-on-year.
The money is still on the flower
Revenue and earnings have kept improving, but Jingdong’s total cost for the quarter has also increased significantly.
In terms of cost, according to data disclosed in the financial report, operating costs for the quarter increased from RMB 88.7 billion in the third quarter of 2018 to RMB 114.7 billion (US$ 16.1 billion), an increase of 29.4% year-on-year. The financial report explained that this was mainly due to the company’s online self-operated business and the increase in logistics services provided to third parties.
However, Jingdong’s control of performance fees continued this quarter. The performance fees for the quarter (including procurement, warehousing, distribution, customer service and payment processing) increased from 7.8 billion yuan in the third quarter of 2018 to 8.8 billion yuan in the third quarter of 2019. 1.2 billion US dollars), an increase of 12.8%.
The expense rate will increase with the overall scale. The more informative is the expense ratio (the ratio of performance expenses to net income). The reduction of the performance fee rate will further release the profit space of Jingdong. In the quarter, Jingdong’s compliance expense rate has dropped to 6.5% from 7.4% in the same period last year. Jingdong explained this in the financial report as the economies of scale brought about by the improvement of logistics capacity utilization and employee productivity.
In addition, Jingdong’s marketing expenses for the quarter increased from RMB 4.1 billion in the third quarter of 2018 to RMB 4.4 billion (US$600 million), an increase of 7.6% year-on-year; technology and content costs from the third in 2018 The quarterly 3.4 billion yuan increased to 3.6 billion yuan ($500 million) in the third quarter of 2019.
Sinking market will be incremental
In addition to the core data, there are several major businesses such as logistics, especially the external logistics services opened by JD. According to the data, as of September 30, 2019, Jingdong’s third-party platform has more than 250,000 contracted merchants. Jingdong Logistics Group’s outsourcing business accounts for nearly 40% of the total revenue of the logistics group.
The Jingdong Health Sub-Group, which was formally established in the Q1 financial report, also had the latest news: Jingdong Health completed the A-round preferred stock financing in November this year, with a post-investment valuation of approximately US$7 billion.
After obtaining the WeChat level entrance, Jingdong, which Jingdong used to focus on the bottom line market, has no specific results to disclose, but the financial report data shows that more than 70% of new users in Jingdong in the third quarter are from the low-line market.
In the follow-up conference call, Xu Lei said that Jingxi’s new customers come from low-tier cities, social properties are relatively strong, and they are easy to buy, and the conversion rate is high but the customer price is relatively low. Jingdong main station is mainly engaged in brand products, while Jingxi is concerned about China’s developed production capacity and manufacturing capacity.
Huang Xuande added: “The survey results show that the vast majority of consumers in low-tier cities will use multiple apps, which app to use to see what type of products to buy. In the first and second tier cities, most consumers will shop. Only use a single APP. We want to create a dual brand strategy of Jingdong main APP + Jingxi.”
Liu Qiangdong also summarized the results of the quarter in the opening statement of the conference call, and revealed his overall strategic plan for 2020: “This year, Jingdong has achieved good results in terms of revenue, net profit and cash flow. In the next year, the overall strategy will continue to grow in terms of revenue, net profit and cash flow, and we will also improve the GMV, consumer applications and technical service revenue. Accelerated growth in all aspects is the growth of quality… In the next five years, technical service revenue will continue to exceed the revenue of the overall revenue, which will become an important driving force for Jingdong’s revenue and profit growth.” Br>
Obviously, the capital market still had certain expectations for this financial report. Before the financial report was released, Jingdong’s share price rose 0.6%.
The double eleven that just passed proves that the new wave of consumerism is still exerting its own power, and pushing these e-commerce giants can’t go back. Jingdong should be glad that he has slowed down in time.