Earnings Highlights Jingdong Ali Who Has More Strength

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In the latest two quarter earnings report gave a good answer to the capital market, stock prices rose.

From the earnings report, as the two deadly rivals, there is still a huge gap between the two sides in terms of GMV and net profit. However, considering the volume and mode, the direct data comparison is not significant at present.

From the information reflected in the earnings report, the two sides no longer define the company as "an electric company", but compete in finance and cloud computing.

The competition between the two sides has evolved into a protracted war of competitive strength.

There are bright spots in financial reports.

As China

The two representatives of the field, Ali and Jingdong, are at the forefront of the world.

However, due to the operation mode and other issues, both sides are also facing some doubts about the capital market, and two latest financial reports have given a response to the capital market.

Jingdong is getting closer and closer to profitability.

Jingdong released the two quarter results of fiscal year 2016 as of June 30th this year, according to the US general accounting standards (GAAP), the loss in this quarter narrowed sharply, compared with net loss of 510 million 400 thousand yuan in the same period last year, the net loss was 132 million 100 thousand yuan, down 74% compared with the same period last year.

It is worth mentioning that, according to the non US general accounting standards (Non-GAAP), the operating profit of this quarter was 361 million 500 thousand yuan, while the operating loss was 246 million 700 thousand yuan in the same period last year, and the profitability increased significantly and exceeded the expectation of Wall Street.

Non-GAAP Jingdong mall operating profit margin increased from 0.4% in the same period last year to 1.1%.

Ali has been defending the absolute market dominance with the most gorgeous financial data since listing.

Alibaba group released the first quarter of fiscal year 2017 as of June 30, 2016, showing that group revenue increased by 59% over the same period last year, reaching 32 billion 154 million yuan.

From the earnings data, the performance of the two groups is gorgeous enough.

Jingdong, the "loss maker", is closing in on profit and exposing the feeling of "being profitable and profitable at any time". For Ali, a big Mac who has repeatedly recorded a record, continued high growth will undoubtedly give the capital market a reassurance.

With the release of both financial reports, Jingdong's stock price rose by 4.65% on the day, and Ali shares rose to a new high in a year and a half on active trading last Friday.

Ali is not just an e-commerce provider.

For the first time, Ali, who has been through the layout, has appeared in the form of the four major business segments in the earnings report.

Ali also said in the earnings report that this will be the last Alibaba to disclose GMV data in the quarterly report, which will be pformed into an annual report in the annual report.

Ma Yun, chairman of the board of Alibaba group, made this adjustment: GMV has never been the core indicator and the commercial infrastructure is.

In fact, in recent years, Ali has been digging more potential space through ecological layout, telling more stories.

In this earnings report, Ali announced the financial data in four aspects: "China's retail platform", "cloud computing", "digital media and entertainment", "innovation projects and other businesses".

Some Internet analysts have said that the matrix expression will make it easier for the outside world to understand the value distribution of Ali. "The profitability of e-commerce business is no longer offset by other business losses, and the new business performance will also be more pparent."

Li Chengdong, an e-commerce analyst, said in his earnings analysis that Ali has been more than just an online retail platform. Business diversification has brought more imagination to Ali.

The industry even takes this form as a rotating seat, and Ali generally takes the lead in the layout of some potential areas, which will also achieve good performance in the subsequent period, which has made the group business bright and bright.

However, Ali also has the strength to enter and cultivate potential areas.

Although compared with ALI, Jingdong is slightly weaker in the ecological layout, and later than Ali, but Jingdong has also stepped up Ali's footsteps, and began to carry out ecological layout.

According to the financial report, Jingdong has been in cloud computing, finance, O2O, intelligent hardware and other aspects of layout.

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Jingdong calls for super cloud computing

From the earnings report, both sides have enough cash flow reserves.

This means that the two sides can almost set foot in most fields, and at the same time, willfully challenge each competition.

In the case of touching the ceiling of the electricity supplier, it is a common choice to excavate the growth space as much as possible, and the Shang Chao business of high-frequency consumption has become the focus of the two sides' wrestling.

Even insiders admit that the online business super structure directly affects the future market structure of the electricity supplier.

"Fast moving consumer goods contribute more and more to the GMV of Jingdong," said Shen Haoyu, former CEO of Jingdong mall. "Fast moving products can enhance customer loyalty and bring traffic.

Especially in the current weak economic environment, its importance is more prominent. "

Liu Qiangdong, chairman and CEO of Jingdong, said that the Jingdong group is not worried about cash. "If it is necessary, if we believe that we will create long-term value for shareholders and users, we will not hesitate to respond to any price war."

In addition to the tough business of online business, Jingdong also accelerates its catching up in cloud computing.

In the analyst conference call after the earnings report, Liu Qiangdong said that the future heavy capital investment is mainly in cloud computing.

Jingdong group CFO Huang Xuande also said that the cloud computing business started late, but is now catching up vigorously.

From Amazon's recent earnings report, we can see the importance of cloud computing.

The net revenue from Amazon's AWS cloud computing business is $2 billion 886 million, up from $1 billion 824 million in the same period last year, while operating profit is $718 million.

Amazon's AWS cloud computing business has contributed 55% of its operating profit share by 9.5% of its revenue share.

And this quarter, Ali cloud service revenue reached 1 billion 243 million yuan, an increase of 156% over the same period.

Cai Chongxin, executive vice chairman of Alibaba group, said at the earnings analysis conference that cloud computing is a long line fishing business and will be a $40 billion market.

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New business seeks independent financing and listing

In addition to the main business competition, the two platforms are doing their best to independently capitalizing the new business incubated, and blossom in the market competition.

Ali revealed for the first time in the earnings report that the rookie network data of the group affiliate company was revealed for the first time. The results showed that the rookie network handled 42 million packages per day on average, involving more than 1 million 700 thousand courier and warehouse staff members and 180 thousand express stations of rookie network logistics partners.

In the quarter, Paytm, the India third party payment company invested by ant gold clothing, ranks among the fourth largest "wallet" in the world. The number of users has now reached 135 million, which is more than 5 times higher than that of 2015 years ago.

Financial and logistics business has become the most desirable business for both sides.

Jingdong said in its earnings report that Jingdong's financial self-sufficiency was achieved in the first half of the year, and the external financing was 6 billion 650 million yuan in the first quarter.

Jingdong group's O2O subsidiary "Jingdong home" merged with China's largest crowdsourcing logistics platform, "dada", and set up a new company.

Liu Qiangdong frankly said that if the new company wants to continue its operation in the future, it will surely carry out independent market financing.

Both sides are well aware that the independent business can not only win a better reputation for the group, but also achieve a better market position.

In Liu Qiangdong's view, by integrating Jingdong's home and dada's crowdsourcing logistics system, the new company will provide low price logistics services to Chinese retailers, service providers and O2O enterprises, and improve efficiency.

The merged company will become a new force in the field of fresh O2O in the field of crowdsourcing and supermarkets.