Jingdong Mall Continued Earnings Growth With High Quality

In August 10th,

The 2016 quarter of fiscal year second quarter results, the profit index increased, free cash flow hit a new high.

Data show that Jingdong eliminated the virtual in the second quarter of 2016.

The total volume of pactions amounted to 157 billion 100 million yuan, an increase of 52% over the same period last year. Net income reached 65 billion 200 million yuan, an increase of 42% over the same period last year. The free cash flow of Jingdong in the second quarter of 2016 was 8 billion 100 million yuan (about 1 billion 200 million US dollars).

According to BOE, Jingdong's revenue growth in the quarter continued to be higher than the industry average, with net profit exceeding Wall Street expectations.

An important reason for the increase in profitability is expected to be a significant increase in profitability of Jingdong mall during the quarter.

Data show that the total volume of virtual goods removed by Jingdong in the second quarter of 2016 amounted to 157 billion 100 million yuan, up 52% over the same period last year. Net income reached 65 billion 200 million yuan, an increase of 42% over the same period last year; the number of annual active users and the number of performing orders (excluding virtual goods) reached 188 million 100 thousand and 373 million 400 thousand respectively.

In addition, while maintaining steady growth, the profitability of Jingdong mall has been steadily improving.

Under the non US general accounting standards (Non-GAAP), the profit margin of Jingdong mall increased from about 0.4% in the same period last year to about 1.1% in the second quarter of 2016.

The second quarter has experienced 618 major promotional activities, and the profitability of Jingdong mall has not risen, which fully demonstrates the success of the "quality business" positioning.

Free cash flow creates new historical and high-tech business layout results show

It is reported that in the second quarter of 2016, Jingdong's free cash flow was 8 billion 100 million yuan (about 1 billion 200 million US dollars). As of June 30, 2016, Jingdong's free cash flow in the past 12 months was 11 billion yuan (about 1 billion 700 million US dollars).

In addition, the layout of Jingdong's new business has achieved fruitful results this quarter.

In the first half of this year, Jingdong finance realized self-sufficiency in capital.

In May, Jingdong finance was approved by the Shanghai stock exchange and issued a factoring contract debt asset backed securities with a scale of 2 billion yuan.

In addition, Jingdong finance has successfully completed the five phase of asset securitization without recourse in the first half of the year, with net financing amounting to more than 7 billion 600 million yuan.

By means of asset securitization, the operation cost has been reduced, and the profitability has been improved, which provides a guarantee for its sustained and healthy development.

In June, Jingdong and WAL-MART announced that they had reached a deep strategic cooperation to jointly build the world's leading retail business mode on the integration line.

The two companies will further promote the brand and business of "shop No. 1", and open the official flagship store of WAL-MART "Sam member store" on the Jingdong platform. In O2O, WAL-MART entity stores will access the "Jingdong to home" O2O platform, and cooperate at the supply chain side to further expand Jingdong's advantages in the field of high quality e-commerce services and logistics.

For the first time in the list, Fortune 500 ranked 366 in the world's largest company.

In July, the magazine released the list of Fortune 500 in 2016. Jingdong group made the first list in 366 place, becoming the first and only Internet company in China to choose Fortune 500.

Core data of Jingdong Q2 2016 performance:

Net income was 65 billion 200 million yuan, an increase of 42% over the same period last year.

In the second quarter, net income from services and other projects (mainly from the e-commerce platform business) was 5 billion 500 million yuan, an increase of 67% over the same period last year.

The gross profit in the second quarter was 9 billion 800 million yuan, and the gross margin under non US general accounting standards (Non-GAAP) was 9 billion 500 million yuan, up 66% over the same period last year.

Losses narrowed under GAAP, and profits increased significantly under Non-GAAP.

In the second quarter, the net profit of non US general accounting standards (Non-GAAP) was 391 million 400 thousand yuan, compared with a loss of 15 million 700 thousand yuan last year.

Jingdong mall continued to make profits. In the two quarter, the profit margin of non US general accounting standards (Non-GAAP) was about 1.1%, which was about 0.4% in the same period last year.

The total volume of trade (GMV) in the second quarter was 160 billion 400 million yuan (about $24 billion 100 million), and the total amount of virtual goods was 157 billion 100 million yuan (about $23 billion 600 million), up 52% from the same period.

The free cash flow in the second quarter was 8 billion 100 million yuan. Up to June 30, 2016, the free cash flow in the past 12 months reached 11 billion yuan, a record high.

The ability to acquire new users is strong, and the number of active users has maintained a high growth rate of 188 million 100 thousand, an increase of 65% over the same period (excluding the independent users of the pat Network).

Excluding virtual goods, the order volume was 373 million 400 thousand in the second quarter, an increase of 56% over the same period last year.

Mobile terminal accounted for a rapid increase in the proportion of orders through mobile terminal channels accounted for nearly 8, reaching 79.3%, an increase of more than 130% over the same period.