Strategy And Mission Jingdong Formally Submitted To Hong Kong Listed Prospectus

The annual "Jingdong 618" mid year promotion campaign is in full swing. As the first national Shopping Festival after the epidemic, this year's "Jingdong 618" has been given more expectations - the long suppressed consumer demand is urgently needed to release. The major businesses that have just experienced the cold winter are eagerly looking forward to achieving sales volume. I hope to get a slice of the traditional Jingdong home through 618.

At this point, Jingdong quietly launched the Hongkong listing plan. After formally hearing through the HKEx, Jingdong group (NASDAQ: JD) uploaded the PHIP prospectus on the website of the stock exchange in June 5th.

6 years ago, in May 22, 2004, Jingdong listed on Nasdaq, setting up a new fund-raising record for the NASDAQ China concept stock initial public offering. At that time, Jingdong was known as "China's first large scale comprehensive e-commerce platform to the United States". Now, Jingdong group's strategic positioning is "supply chain based technology and service enterprises". Not long ago, 519 veteran workers day, Liu Qiangdong upgraded the mission of Jingdong: the mission of "technology based, dedicated to a more efficient and sustainable world", carrying the value of Jingdong's future industrial Internet.

Behind the upgrading of strategy and mission is the evolution of China's business ecosystem, including the Jingdong. The once inseparable entity economy and virtual economy, sales channels and manufacturing enterprises have long been integrated into an indivisible symbiosis. As China's largest retail platform, Jingdong has set an example in building a sustainable business ecosystem. Today, the new Jingdong is no longer satisfied with this role. Liu Qiangdong hopes to build a new generation of retail infrastructure with the solid supply chain system and data base of Jingdong for many years, together with partners to reduce the cost of the industry and enhance social efficiency. It is understood that the Jingdong listing and financing will also mainly invest in the technology sector.

　　 From zero sum game to brand incremental field

"When the Jingdong entered the category of household appliances in 2006, the net interest rate of the household appliance industry was less than 1%, while the net interest rate of the household appliance retail line could reach as high as 6%, the inventory turnover of 87 days, and the account period as high as 180 days. The inefficient retail links have become the highland of value acquisition, and the whole industry is seriously deformed. This also gives Jingdong the opportunity to enter, "Liu Qiangdong recalled in his internal letter.

In his company, he demanded that the net interest rate of household appliances should be maintained at a relatively low and stable state. Even if he had the ability to obtain more profits, he should give profits to users and partners. "If the Jingdong has the chance to get a dollar profit, do not take it all away, take only 70 Fen of it, and leave it to partners for Sanmao. 70 Fen of it is left, 35 Fen of which is left to the team, and the remaining 35 Fen is used for sustainable development of the company." This is the famous "35 Fen theory" of Jingdong, which relied on this simple faith. Jingdong successfully changed the zero sum game relationship between channel and brand, and protected all parties in a relatively reasonable space.

The Jingdong's first quarter earnings report released in early May was released in the 1 quarter of 2020. In the 1 most serious cases from April to 2020, 572 items of daily necessities on Jingdong platform cost more than 100 million yuan, of which 490 brands are domestic brands, 230 brands are over 300 million, and 180 brands exceed 50% over the same period. In May 15th, during the live broadcast of Dong Mingzhu's Jingdong, the turnover exceeded 703 million yuan, setting a record of high turnover in the home appliances industry.

At the same time, in order to help small and medium-sized businesses to ease the pressure of operating capital, Jingdong actively accelerated the period of payment to suppliers, and the number of days of accounts payable turnover fell to 51.7 days in the first quarter, a decrease of 5.7 days compared to the same period, the lowest value in three years.

　　 From incremental field to symbiotic intergrowth

At the beginning of the new year, the outbreak and rapid spread of the epidemic have a direct impact on China's economic growth and the stable operation of the supply chain. There are a series of problems such as consumer inhibition, production halt, poor logistics, and unsalable products, which also bring difficulties to the upstream and downstream enterprises. From production to consumption, from domestic to international, there are risks and challenges in the supply chain's chain breaking. War.

Over the past three years, Jingdong group has been upgrading the core capabilities of "intelligent supply chain and intelligent logistics" based on technologies such as Internet of things, big data and artificial intelligence. It is becoming a new generation of infrastructure like water and electricity. At the beginning of this epidemic test, Jingdong's investment in intelligent supply chain and intelligent logistics has once again been highlighted with remarkable social benefits. From the delivery of key epidemic prevention materials to efficient logistics and distribution, from the protection of people's daily necessities to the promotion of on-line sales of unsalable agricultural products, Jingdong's intelligent supply chain and intelligent logistics have played a positive role in the resumption of production and the protection of people's livelihood.

From January 20th to February 28th, the Jingdong only provided 220 million consumers with more than 290 thousand tons of daily necessities. By the end of March, Jingdong had transported over 70 million medical emergency supplies and sent over 10 thousand tons of medical emergency supplies and living materials from around the world to Hubei. Relying on logistics advantages to withstand the pressure of the epidemic, and provide users with better experience, Jingdong has become an excellent electronic business platform in the eyes of consumers.

But Jingdong is not satisfied with the only good experience of e-commerce platform. Liu Qiangdong believes that technology will play a huge role in the industrial Internet, industrial Internet and other fields. As a Internet Co connecting production and consumption ends, Jingdong has a solid supply chain system and data base, and has the opportunity and responsibility to actively embrace the next intellectual age.

In the past, Jingdong has increased the efficiency of the retail and logistics industry by reducing the number of moving goods and the intermediate links. Looking forward to the future, Liu Qiangdong stressed that Jingdong's business development is based on technology and continues to provide consumers with a good experience. At the same time, it will open up its capabilities to become an infrastructure and partners to reduce industry costs and improve social efficiency.

Over the past decade or so, the mobile Internet era has brought about many changes in the consumer side, and many new business models have also emerged. In the future, with the convergence of technologies such as cloud, AI and 5G, and the arrival of the intelligent era, the supply side will bring more opportunities to reduce costs, increase efficiency and create new opportunities.

Liu Qiangdong firmly believes that technology based network synergy will bring greater room for efficiency: "the first criterion for measuring the success of our business model is whether we have improved the efficiency of our industry and society, created real value, opened ourselves up, and connected to the outside world. We are not even the center of connectors, but actively integrate into the world, become part of others, symbiosis, mutual rebirth. "

Professor Zhang Ying, vice president of Guanghua School of Management, Peking University believes that Jingdong and other Internet industries shoulder the mission of China's industrial development, explore the development path of combining supply chain and technology as the core, and promote the upgrading and development of the entire manufacturing industry, which is in line with the mission of China's electricity supplier and the needs of China's economic development stage.

"In 10 years, from Beijing to NASDAQ, it was only a small success". In 2014, Liu Qiangdong told the media at the NASDAQ listing site. Six years ago, Liu Qiangdong brought an electricity supplier company to NASDAQ. After six years, he brought back a technology and service company for the HKEx, and also brought a model of Internet enterprises symbiotic with the real economy.