From The Earnings Report, Jingdong: Losing Money Is More And More Like Ali.

In May 8th, JD.COM The group released its first quarter results for the 2015 fiscal year ended March 31, 2015. Jingdong reported net income of 36 billion 600 million yuan (US $5 billion 900 million) in the first quarter, an increase of 62% over the previous year, a net loss of 710 million 200 thousand yuan (about 114 million 600 thousand US dollars) in the first quarter, and a net loss of 3 billion 795 million yuan in the same period last year, narrowing compared with the same period last year.

Losing money has not been much news for Jingdong. The fast-growing electricity supplier has lost a lot of money in the past 10 years. However, investors look at the future, willing to pay for the Jingdong because its growth momentum is good.

In May 7th, Jingdong's old enemy Alibaba group also released its first quarter results in 2015. According to the results, Ali's three largest Chinese retail platform (Taobao, Tmall, Juhuasuan) earned 17 billion 425 million yuan ($2 billion 811 million) in the first quarter, an increase of 45% over the same period last year, and a net profit of 2 billion 869 million yuan (463 million US dollars) in the fourth quarter, down 49% over the same period last year.

Looking at revenues and profits does not really reflect the gap between the two companies. Liu Qiangdong and Ma Yun, who want to dominate the retail market, will be more concerned about the total sales volume (GMV) of the platform, because that means market position and profit prospects.

Jingdong GMV is approaching Ali

Jingdong GMV reached 87 billion 800 million yuan (US $14 billion 200 million) in the first quarter of 2015, an increase of 99% over the same period last year. In 2014, the GMV growth rate of Jingdong was 107%, almost pushing forward at the speed of doubling.

Alibaba in the first quarter of 2015, GMV was 600 billion 100 million yuan, an increase of only 40%. In the fiscal year of 2015, the GMV of Alibaba was 24440 billion yuan (about 160 billion US dollars), representing an increase of 46% over the 16780 billion yuan in the 2014 fiscal year.

Despite the absolute value, the GMV of Jingdong and Alibaba in the past quarter were 87 billion 800 million yuan and 600 billion 100 million yuan respectively, and Jingdong was only 14.6% of Ali. However, according to the present growth rate, the Jingdong will further narrow the gap with Ali in the future.

At the same time, Zhang Yong announced that he was replacing CEO with Lu Zhaoxi. And insiders believe that Lu Zhaoxi was "dismissed" or related to poor performance. A few months ago, Tmall President Wang Yulei (Qiao Feng) was removed from office and was also interpreted by the outside world as a poor executive at Tmall.

In interpreting earnings reports, Liu Qiangdong said: "in the electricity industry, who can provide a better user experience, who will grow faster."

Over the past few years, the quarrelling between Ali and Jingdong has never stopped, and the running situation of both sides will continue. The rapid growth of Jingdong is bound to bring pressure on the management of Ali. I wonder if Ali can pull back a game after the change.

Jingdong is more and more like Ali.

Jingdong and Alibaba, one is self-employed, one is platform The pattern is quite different. But these are the past, and the future Jingdong will become more and more like Ali. In short, the proportion of open platforms will be higher and higher.

According to the financial report, Jingdong's GMV in the first quarter was 87 billion 800 million yuan (US $14 billion 200 million), an increase of 99% over the same period last year. GMV from self business and market operation was 50 billion 900 million yuan and 36 billion 900 million yuan respectively, up 63% and 185% respectively. In 2014, the proportion of Jingdong's third party (open platform) spanactions reached 39%, of which the fourth quarter was 44%.

It is not hard to see that the proportion of open platform in Jingdong's internal business is higher and higher, and has led to the rapid growth of Jingdong revenue. Jingdong mall CEO Shen Haoyu explained in the earnings report: "the fourth quarter of last year's GMV is very large. If we compare ourselves with the third party platform, the growth rate is similar in the first quarter. It is expected that the GMV growth rate of the future third party platform will continue to be higher than the growth rate of the self-employed platform. The company did not set goals for this, but as previously predicted, the majority of the total GMV will come from third party platform businesses in the next few years.

Therefore, it is not too much to say that Jingdong will become more and more like Ali in the future. This is both good and bad for Liu Qiangdong. Fortunately, the open platform can help Jingdong narrow the gap with ALI and bring more profit points (the profitability of proprietary business is relatively weak). Bad in Liu Qiangdong used to accuse Ali of the platform problem, Jingdong itself has to face.

Not long ago, some netizens broke the Jingdong's open platform. In fact, as long as the platform is built, the control ability of goods and services will be challenged. Problems such as Bill cleaning, fakes, poor service and so on are available on Tmall, and will also be available on the open platform of Jingdong.

All roads lead to the same goal. Jingdong and Ali are on the same road.