The Three Picture Shows The Hidden Worries Behind Jingdong.

The group released the second quarter financial data at the end of June 2016 at six o'clock on August 10th, Beijing time.

The total revenue of RMB denominated accounts increased by 42% over the same period last year, of which online direct sales increased by 40.1% to 59 billion 710 million yuan, while services and other revenue increased by 67.1% to 5 billion 530 million yuan.

At present, Jingdong is still losing money, but the deficit has been reduced by 3.9 times compared to the previous year, with a net loss of 130 million yuan.

In the two quarter, the number of active users increased by 59.4% to 188 million 100 thousand, accounting for

42% of the total population, the growth rate of orders continued to slow down by more than half, only 22.2%, the absolute amount of 370 million.

According to the data released by the China Internet Network Information Center as at the end of June this year, the penetration rate of domestic netizens has shown a saturation trend. The proportion of users who use online shopping channels such as electricity providers in the Internet users has also reached 63.1%, with a total number of 447 million 720 thousand people, and the growth rate has dropped to a single digit.

The situation that the market and users are facing saturation is also reflected in the Jingdong's earnings data. In the first quarter of this year, the overall GMV of Jingdong platform showed the biggest decline in the eight quarter, and the data in the two quarter recovered but was not as good as in the past.

The year-on-year growth rate can better reflect this situation, no matter the total amount of GMV or total revenue, it has maintained a downward trend in the past four quarters, and has decreased to 40.1% and 42% respectively.

The only way to remain optimistic is that the GMV of Jingdong's self operated channel remained strong, and remained at a high level of nearly 50%. Meanwhile, the third party GMV had a big decline, and its growth rate dropped by nearly half compared with the previous quarter.

In terms of cost, Jingdong has a good control. The overall growth rate is similar to that of revenue growth. The absolute amount of technology and management fees with relatively high growth rate is relatively small, while the operating cost has increased by only 38.6%.

In terms of profits, Jingdong's quarterly losses still fell by 74% to 130 million yuan compared with the same period last year, but the Jingdong did not disclose specific loss information. Combined with the information in a quarterly report, it is believed that with the gradual development of O2O and Jingdong finance, the amount of losses has been reduced compared with before, and the profitability of Jingdong e-commerce business has been enhanced.

In terms of specific business, Jingdong continues to exert its power in O2O, cross-border electricity providers and finance as well as continuing its business in rural areas.

As of the end of June, Jingdong's own warehouse reached 234, an increase of 41% over the same period, and 6756 sorting and distribution stations, an increase of 63.1% over the same period last year. This sustained high growth rate means that Jingdong's emphasis on O2O and terminal logistics exceeds that of maturing trunk logistics.

Not long ago, Jingdong and

Announcing cooperation and building O2O business together, Jingdong's merger with dada and its stake in Yonghui supermarket have strengthened its offline capabilities.

In the cross-border electricity supplier, Jingdong announced the purchase of new channels on the world, enabling Chinese consumers to buy high-quality products from the UK conveniently, while the introduction of high-end consumer goods such as Shiseido and Louis thirteen showed that Jingdong is currently aiming at urban white-collar consumption upgrading strategy.

Jingdong finance has successfully sold more than 7 billion 600 million yuan of securitized debt products in the first half of this year. At present, the volume of monthly products is stable over 1 billion yuan.

However, it is worth noting that the number of orders per capita of Jingdong has been increasing since the previous 4 months. The number of orders per capita decreased by 0.5 from 7.8 to 7.8 in the current quarter, which is slightly higher than that of the same period in 2015.

Although the loss of Jingdong has been greatly reduced, it may be expected to turn a profit in the third quarter of 2016, but the declining growth rate and the choice of business models are also lingering worries.

Compared with Amazon, a benchmark firm in the electricity supplier industry, Jingdong has been rather slow in developing its technology roadmap. At present, the largest proportion of revenue and profit is still electricity supplier business. Meanwhile, Amazon has taken up 56% of the total operating profit from AWS services, and has lost profits and maintained a rapid growth in net profit. This has been a shadow to the Jingdong's profit model and profitability level.