Liu Qiangdong: Jingdong Finance Has To Do The Most Bitter And Exhausting Activity.

Shortly after announcing the acquisition of financing, Jingdong finance convened a commendation conference containing all management and more than 1 thousand employees. Chen Shengqiang, Jingdong financial CEO, described the operation logic of Jingdong finance.

Chen Shengqiang revealed that in 2013, he himself and

CEO Liu Qiangdong has an appointment.

"If Jingdong finance is not good enough, I am incompetent. If I do well, I hope that the core management can be financially free."

Chen Shengqiang revealed.

Took out 20% of Jingdong financial shares as an incentive for employees.

Now is just the beginning, how much money these stocks can ultimately be worth, and it needs the joint efforts of Jingdong financial staff to achieve it.

Not long ago, Jingdong Finance announced that it had signed a capital increase agreement with investors from Sequoia Capital China fund, harvest investment and China Taiping leading investment, financing 6 billion 650 million (about 1 billion US dollars) and Jingdong financial valuation of more than 46 billion yuan.

Calculated by 20% equity, the value of Liu Qiangdong's option has nearly 10 billion yuan. However, in the rapid growth of Jingdong finance, the Internet financial industry also attended many unicorns, which led to a lot of temptation.

When Chen Shengqiang mentioned this problem, he said that many employees feedback some internet financial companies to excavate Jingdong finance, and their salaries are basically higher than their current salaries.

However, many employees who have left have returned to Jingdong finance.

"Someone asked me, why do you continue to do business in Jingdong finance instead of going out to start your own business?" I replied to this question. I said if I hadn't been in Jingdong a few years ago, then there would be no me today.

Chen Shengqiang said, "billions of billions of dollars in the world will have a lot of companies, but there are few opportunities to grow together with a company worth billions of dollars.

And in 2014 and 2015, about 90% of the A round of financing had problems.

Chen Shengqiang finally encouraged everyone. Although there are many opportunities outside, Jingdong finance is a great company that has the chance to turn into a company with a market value of more than ten billion dollars.

This opportunity is not much for everyone.

The following is a statement from Jingdong finance CEO Chen Shengqiang:

Today I would like to talk with you about how the whole management team understands the cause of Jingdong finance and how to understand what we should do in the future.

We are a financial technology company, not an internet financial company.

The so-called financial technology company is actually an institution for financial services.

First of all, we do not rush to grab business with traditional financial institutions, but rather to serve some new needs that traditional financial institutions can not serve.

Second, it is very important not to be a channel for traditional financial institutions.

Therefore, we need to create some real products and build our own scenes.

Third, I hope that we are playing a role in the bottom of finance. We must build on big data, have the ability of risk management and risk pricing, and export this capability externally.

Jingdong finance needs to build its core capability

What have we done?

In the past two years or so, we have also invested in many companies, which are related to our financial businesses.

With this positioning, we are thinking that we need to build our core capability. In terms of the overall financial core competence, there are actually three.

The first is wind control.

Quite simply, we position ourselves as the foundation of a financial technology company.

Many of our businesses, such as wind control, white supply, wind control, wind control, wealth management, wind control, wind control, and wind control are the basis for all our businesses. Without this, it is difficult for us to build a foothold.

The second one is the account.

In fact, account is the foundation of our user operation. As a company based on Internet technology, accounts are very important.

Our entire Jingdong is doing the business of the users. We have to enable users to realize consumption, financial management, life payment and so on through an account.

No account, in fact, our wind control is also very difficult to play a role.

The third is connection.

Connection is the platform to play the role of building an ecological environment.

The cooperation between us and traditional financial institutions, the Jingdong created by ourselves, is actually a connection.

Jingdong finance has always insisted on doing things with long-term value and social value. Not only do we do it ourselves, but we also need to link it with more partners to export this value to provide more valuable financial products and services for more users.

What have we done in the past two years and what have we achieved?

Our supply chain finance is now a loud brand in the industry.

Consumer finance is the first domestic Internet consumer finance.

Product congregation, close to 50% of the market share.

Private equity financing, 9 months of 7 hundred million of the raising of the scale, also belongs to the industry first.

The ecological circle has been the most complete ecological circle in the industry at present.

The white ABS is also the industry's first Internet consumer finance asset securitization project.

Xiao Bai, the most innovative financial product in the market, has not only brought great value to ourselves, but also enhanced the status of our partners.

Jingdong finance has to do the most bitter and exhausting activity.

What is our core value?

In fact, these achievements are related to our core values.

Now, let me talk to you, what is our core value?

I remember that in October 2013, when I was in the United States, I talked with Lao Liu (Jingdong founder and chairman of the board of directors and CEO Liu Qiangdong) one day. I asked him, "what do you want for finance?"

Then he made two points. The first point is that the most bitter and tiring work is the most long-term value. We must insist on doing it, just like the logistics of Jingdong.

Now we can find that more and more people are from Jingdong.

Choosing Jingdong's electricity supplier, logistics has become our real core advantage.

The second point of Lao Liu ti is that if you have 100 yuan, you earn 70 yuan, and the remaining 30 yuan is left to others to earn.

So, how can we build up our own core values, which will include wind control, account and connection. From the perspective of the whole company, we will have real core values only if we realize these three points.

There was an investor who talked to me before. If we give loans to the industry, how about subsidies like this? I say, I want to see who can give subsidies.

In the case of loans, the money is released and we must consider how to get it back.

Wind control is our core capability, which can control the bad debt rate to a certain proportion.

In fact, the seven systems we do include supply chain finance, consumer finance, public funding, wealth management, insurance, payment and securities.

These seven systems, each business system, can build up their core competencies.

A while ago, a friend asked me, what is the net asset return rate of your consumer finance?

In fact, roe is only one of the patterns of consumer financial profits, and the whole consumer financial team relies on the core of wind control that has been built, at least there are five profit models.

ROA belongs to the sheep that we often say about wool on pigs, and we still have four pigs.

We can wait and see the birth of these four pigs.

Let me give you another example. Do you know where the biggest value of the chips is? I remember when I was just starting to raise public chips because I was more interested in some technology products, plus consumption upgrading, and finished the physical chips. Then we began to do private equity financing, but in fact, the crowd financing and private equity financing have become a link in the creation of the ecosystem.

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So far, through the private equity financing and public innovation, the public funding system already owns nearly 100 shares of start-up companies. Who says these companies will not become unicorns or even apples in the future?

What are the beliefs of our business?

Many Internet financial companies are B2VC impetuous.

Next, I want to focus on one thing, corporate belief.

Over the past two years, the whole Internet financial industry has basically become a thrived business. Any company that can do it will be able to spend money in the valuation of 100 million dollars, 200 million dollars, 300 million dollars, or even 1 billion dollars.

Recently, a company running a number of running companies has a volume of RMB 1 billion, with a volume of 10 billion yuan.

When you do a lot of things, you see more in front of you and do "B2VC" activities.

From my point of view, I hope to do this company for a long time. I hope this is something I can't finish my whole life.

So, I was wondering, what can support us to achieve this goal? Finally, I think of the word "faith" and "enterprise belief".

There are several aspects here.

The first is steadfastness.

We should have enough firm belief that we can persist in some things.

On the one hand, in the direction of what we do and do nothing, we must persist in doing things with long-term value and social value.

On the other hand, things that have already been decided well must be carried on and not swayed.

The second is simplicity.

Two points, one is to be a simple and pure person, so we can simply communicate, including having a clear idea and deciding the core.

There are simple things. How do we find out the real nature of a seemingly complex matter?

Third, pursue perfection.

For Jingdong finance, 120 points are passing points, 60 points long or 80 cents almost psychological is absolutely not.

When I entered Jingdong, I had a request for myself that every time I did things could exceed the boss's expectations, so 120 points should be our belief.

Fourth, synergy, "go out".

I want to talk to you more about synergy. Our enterprise, whether it is now or in the future, the biggest enemy is always ourselves.

In this line, we are always in the process of starting a business, always in the state of crisis.

We spent two years building seven major business systems. In the future, we should "go out". We should rely on the coordination of several systems, rather than separate our own affairs.

Fifth, user experience.

User experience is a very important point in the values of Jingdong. I remember a time when I said I was the chief experience officer of Jingdong finance.

To do anything, we should take the principle of not hurting the interests of users as the highest principle. This is our bottom line and no one can challenge it.

It's easy to make money in finance, but we can't earn those fast money or silly money. This is not in line with our values.

A behavior that hurts users' interests may become a blot for our company, especially in the financial industry. Credit is our foundation, no matter what time it is the first.

On the other hand, it is experience. We have to stand on the user's perspective to make products. I once said at the business analysis meeting that we need to recruit more Virgo people to do UED.

Sixth, innovation.

For more than two years, we have achieved this achievement, which is inseparable from innovation and exploration.

Without these things, we are only a channel trader at best, and there will be no such partners.

I hope you can continue to pursue innovation and turn innovation into a habit.

Why not leave Jingdong financial venture?

What is our personal belief?

What I have just said is corporate belief. I think you may say what matters to me and what kind of relationship we have with us.

This is just what your old man wants to do, or has something to do with other executives. What does it have to do with the employees below?

In fact, corporate beliefs are closely related to personal beliefs.

For example, I have seen some screenshots of some WeChat chatting sent by some of my classmates here in the past two days. At least two are the same. A certain company is now doing something related to finance, and is digging in Jingdong finance, and the salary is basically higher than the current salary.

Here I want to say, there are many temptations outside, including many startups.

Some of us say that the world is so large that I want to see it.

Recently, some of the students have come back. Some people have talked with me. Why do I have to go? He said, because we feel that there are many problems and resources are not enough, and internal coordination is sometimes hard.

After walking for a while, they found the outside world the same or even more serious.

Someone asked me why you continued to do business in Jingdong finance instead of going out to start business on your own. I answered this question. I said that if I hadn't been in Jingdong a few years ago, then there would be no me today.

Because billions of billions of dollars in the world will have many companies, but there are few opportunities to grow together with a company worth billions of dollars.

A recent market report said that about 90% of the A round of financing in 2014 and 2015 had problems.

So, although there are many opportunities outside, Jingdong finance is a great company that has the chance to turn into a company with a market value of more than ten billion dollars.

Every one of us here has the opportunity to accompany and witness the growth of the company. With the growth of the company, individuals can get more room for development and opportunities, and grow and accumulate. This opportunity is not much for everyone.

Remember that in 2013, I told Lao Liu, I have a request that if Jingdong finance is not good, I am incompetent. If I do well, I hope that the core management can be financially free.

Lao Liu took out 20% of Jingdong's financial stake as an incentive for employees. Many of the students here also have shares in Jingdong finance. Now it is just the beginning. How much money these stocks can ultimately get depends on our joint efforts.

Internet financial industry structure will be settled in 1 to 2 years.

What is the future of the industry structure?

Let's talk about the challenges ahead.

First, the whole economy is going downhill, which will also have an impact on our industry, including credit business. In fact, the risks will be bigger.

Second, from the industry side, several companies have been talking about financing since our financing.

Coupled with some recent industrial risks, I predict that the industry pattern will be determined in the next two years, and the battle to seize the commanding heights has begun.

Finally, thank you. In 2014 and 2015, with the joint efforts of all of us, we have achieved certain results. On behalf of the entire financial management, I thank all of you here, including those of the group headquarters and the subsidiaries of the group, for your help.