getUrls?link=e8ec563379d5b4112e06ac8314f41bc0 - Jingdong Digital is going to be listed:30%of income depends on"dad", Liu Qiangdong hits the top five of the rich list

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Author | Jon Margaret

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Following the Ant Group, JD Digital Technology will finally be listed.

On the evening of September 11, the official website of the Shanghai Stock Exchange disclosed that it had accepted Jingdong Digital Science’s listing application on the Science and Technology Innovation Board. According to its prospectus, from 2017 to 2019 and the first half of this year, the company’s revenue was 9.1 billion yuan, 13.6 billion yuan, 18.2 billion yuan, and 10.3 billion yuan, and net profit (loss) was -3.8 billion yuan, 130 million yuan, 770 million yuan, -680 million yuan.

It is worth noting that Jingdong Digital Science is JD subsidiary, held by JD 36.8%equity, Liu Qiangdong’s direct shareholding of 8.86%, plus the indirect shareholding of the other three companies, Liu Qiangdong’s total shareholding is 50.35%. Through the AB share voting rights setting, Liu Qiangdong has 74.77%voting rights, strong>Steady control of this company.

As the”pro son” of Jingdong, JD Group and JD There are a lot of Transactions. JD About 30%of Mathematics’ income comes from Jingdong group,Jingdong is not only JD Digital Science’s largest customer and its largest supplier. However, JD Digital Science is still at a loss.

Even so, the industry has already given the Jingdong about 2000 Listing valuation of RMB 100 million. According to this calculation, Liu Qiangdong’s net worth will increase by about 100.7 billion yuan, and CEOChen Shengqiang will become a billionaire, a large number of executives and employees Become a billionaire.

With the publicity of the prospectus, the rumors of a long-running listing have finally settled, JD Digital Science will become another listed company spun off by the JD group. The secondary market has a head-on contest.

Over 10 billion in half a year, increasing revenue but not profit

Jingdong The predecessor of Mathematics is Jingdong Finance is a business that extends from the Jingdong mall, 2013 Started to operate independently, initially focusing on finance and doing microfinance, such as Jingdong Baitiao, Xiaojinku, and agent sales of fund products And wealth management products, which were later upgraded to JD Digital Technology Group, providing financial technology support for banks, government departments in some cities, and state-owned enterprises .

Now, Jingdong Digital Science’s customers can be divided into three major Category:Financial institutions, merchants and enterprises, and government, correspond to the three major business sectors.

In 2017, the revenues of these three sectors were 1.5 billion yuan, 7.3 billion yuan, and 73.15 million yuan respectively. Merchant and corporate services were the core business, accounting for 80.5%. In 2019, the revenue of financial institutions reached 6.2 billion yuan, and merchants and enterprises reached 10.9 billion yuan, accounting for 34%and 60%respectively. By this year, the proportion of financial institutions’ revenues has further increased, reaching 41%in the first half of the year, and correspondingly to 52%of enterprises and merchants.

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JD Digital’s three major business revenue ratio mapping/Shenran Finance

So from the perspective of the overall business proportion, JingdongThe core business of Digital Science is to provide digital services to merchants and enterprises, but the importance of financial institution services is constantly increasing.

In terms of specific products, the most popular JD span>Span data-stock-id products are definitely Jingdong white strips.

Jingdong Baitiao is an Internet credit payment product , Similar to a credit card. According to the prospectus data, from 2017 to 2019 and the first half of this year, the annual active users of JD Baitiao were 24.93 million. People, 35.84 million, 57.81 million and 55.45 million, the compound annual growth rate reached 52.28%, and the income was 1.473 billion yuan, 2.734 billion yuan, 3.210 billion yuan and 1.794 billion yuan. Jingdong The white bar is Jingdong Mathematics is an important source of income.

Another Internet-specific service is diversion to traditional financial institutions. This is the monetization model of most platform-based Internet companies.

According to the prospectus, as of the end of June 2020, Jingdong Accumulatively recommended more than 2 million deposit users, more than 22 million personal and small and micro enterprise loan users for financial institutions, and facilitated the issuance of nearly 10 million credit cards; recommended more than 67 million users of wealth management products for fund companies and securities companies; Recommended more than 45 million insurance users for insurance companies. JD.com Digital Technology brings personal and small and micro enterprise deposits to financial institutions, amounting to more than 700 billion yuan.

Through cooperation with financial institutions, Jingdong Digital Science has accumulated the platform The flow has been realized in the form of various financial products.

But this business is not always profitable.

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Mapping/Shenran Finance

In 2017, Jingdong Digital Technology had a net loss of 3.829 billion yuan in 2018. It turned losses into profits and achieved a net profit of 128 million yuan. In 2019, it continued to make a profit with a net profit of 773 million yuan. However, in the first half of this year, JD Digital Technology once again suffered a loss, with a net loss of 680 million yuan.

The main reason for the decline in net profit in 2017 and the first half of this year was the increase in equity incentive fees. From 2017 to 2019 and the first half of 2020, JD Digital Science’s equity incentive expenses were 4.381 billion yuan and 260 million yuan respectively , 356 million yuan and 1.063 billion yuan. JD Data Science’s equity incentive expenditures exceeded 1 billion during the two periods, both incurred losses.

Jingdong’s own son depends on Jingdong blood transfusion

Jingdong Mathematics is Jingdong’s”pro son”.

As a sub-business spun off from the Jingdong group, JD Digital Science and JD logistics , Jingdong retail and referred to as Jingdong‘s”troika”. From the perspective of equity, JD is in the JD Digital Science holds 36.8%of the shares and is the largest shareholder.

From the perspective of control, the management of JD Absolute right to speak. JD The board of directors of Mathematics consists of seven people, four of whom are”Liu Qiangdong” ——Chen Shengqiang is the general that Liu Qiangdong pulled up with one hand; Xu Ran is the new senior introduced by JD in the 2018 personnel reform Vice President, has been serving as the CFO of the JD group; Zhang Yao is a former”Jingdong the best female assistant”, served in many companies of the Jingdong department executive director. The other three directors are all external independent directors, and Liu Qiangdong firmly controls the board of directors.

In terms of voting rights, JD Digital Science has Class A shares and For class B shares, class B shares have one person, one vote, but class A shares have one person with ten votes. Through this design, Liu Qiangdong enjoys 74.77%of the voting rights, which is equivalent to having one veto. So JD Mathematics can theoretically”one person has the final say”, which is in line with Liu Qiangdong’s consistent strong style . The risk reminder in the prospectus:”When disagreeing with Mr. Liu Qiangdong, it is likely that the significant difference in the number of voting rights per share may not have a substantial impact on the voting results of the shareholders meeting.”

Since it’s the same boss behind the scenes, in terms of business, Jingdong and Jingdong There are a large number of related transactions between data-stock-id=”oqJD” class=”stock-word”>Jingdong.

For example, the two companies will provide marketing and promotion services to each other. From 2017 to 2019, Jingdong Mathematics gave JD provides marketing services and charges 501 million yuan, 966 million yuan, and 1.471 billion yuan respectively, but at the same time JD is also providing this service to JD Mathematics, so JD Digital Science also paid JD 109 million yuan, 61 million yuan, 201 million yuan.

There are also mutual provision of technical services. Similar to the above, the fees charged by JD Digital Science are 57 million yuan, 79 million yuan, and 125 million yuan, respectively. The cost is 31 million yuan, 43 million yuan, and 39 million yuan.

Through these related transactions, the two companies can obtain services and income from each other very conveniently and at the same time expand their scale. Industry insiders told SZ Finance that JD Digital Science’s original financial business relied on Jingdong, most of the users come from Jingdong.

The prospectus data shows that from 2017 to 2019 and the first half of this year, Jingdong30%of Mathematics’ income comes from Jingdong, accounting for 29.50%, 29.08%, 29.18%and 29.89 respectively%. In addition, part of the income of JD Mathematics comes from the same source as JD Group’s JD third-party merchants and consumers on the retail platform The transaction relies to a certain extent on the application scenario of JD retail.

At the same time, in terms of asset and service procurement, from 2017 to 2019 and the first half of this year, Jingdong Data Science’s procurement amount from Jingdong accounted for 28.31%, 24.60%, 8.85 respectively%And 7.80%.

Jingdong is both Jingdong Digital Science’s largest customer and the largest supplier. Leaving Jingdong, Jingdong The business of Digital Science will be hit hard.

In other words, Jingdong has been supporting Jingdong The pro-son of Shuke, Jingdong Mathematics is inseparable from Jingdong.

In order to avoid risks, Jingdong Digital Science and

span data-stock-id=”oqJD” class=”stock-word”>Jingdong has signed a series of agreements, one of which is the”commitment to avoid horizontal competition”, which prohibits Jingdong is engaged in part of the business of Jingdong.

Liu Qiangdong’s New Wealth Movement


In the eyes of the outside world, when Internet companies go public, the voices of wealth and freedom come from within the company.

The prospectus shows that before the listing and issuance, Liu Qiangdong’s number in the JD The company directly holds 8.86%of the shares, plus the indirect shares held by the other three companies, the total holdings are 50.35%. According to the current JD According to the calculation of the 200 billion yuan valuation of the company, after the company’s listing, Liu Qiangdong’s new wealth is about 100.7 billion yuan, and Chen Shengqiang holds 4.23%of the shares.”>JD received 8.46 billion yuan from the listing.

According to the Forbes rich list in China, Liu Qiangdong currently ranks 20th with USD 16.1 billion in assets, second only to Zhang Yiming. After JD is listed, plus the latest value, Liu Qiangdong’s wealth may reach 30.8 billion US dollars. According to this inference, Liu Qiangdong may enter the top five in the Forbes China rankings, surpassing Huang Zheng, who is currently ranked fifth.

Let’s take a look at Jingdong The billionaire Chen Shengqiang created, the former JD CFO, now the JD CEO of Digital Science, what is the mystery?

Before the establishment of JD Finance, Chen Shengqiang was already Jingdong“Veteran” in the system, serving as the Jingdong CFO of Mall, during his tenure, he established the JD group management analysis system . The company’s evaluation of him is:”It has made outstanding achievements in the company’s financial management, investment and financing, systematic construction, management integration and optimization, and has made outstanding contributions to the rapid development and healthy operation of the group.”

When Liu Qiangdong decided to do financial business, he set his sights on the then JD mall CFO Chen Shengqiang Body. At the beginning, Chen Shengqiang refused. He believes that becoming a CFO of a listed company is the most lofty ideal of financial practitioners, and that finance is not equal to finance. In the field that he is not good at, he is full of uncertainty. But in the end, Liu Qiangdong persuaded Chen Shengqiang.

In spite of this, before 2015, Chen Shengqiang almost never used JD financial The CEO’s identity appears in public, and he is more inclined to be a”behind the scenes”. When the entire industry was chasing the Internet finance boom, Chen Shengqiang shouted the slogan”financial technology”, and because of this, he was called Jingdong“Mr. Technology” of finance.

Chen Shengqiang said at the 2017 JD Mathematics Annual Conference:”I don’t like to write bad checks to people, but what I want to say is that in JD finance, as long as you really do Come out, you will naturally get what you deserve. I believe that as long as we do a good job, at least we can create more than 20 billionaires and more than 300 millionaires.” Chen Shengqiang was also on the spot to present the 2016 outstanding team Provide equity incentives worth 10 million yuan.

JD Another important figure in Mathematics is Zhang Yu.

According to the prospectus, Zhang Yao is the number of Jingdong The directors of the section are named after Liu Qiangdong, Chen Shengqiang and Xu Ran.

I noticed this because Zhang Yao was a Jingdong multiple The legal person of the enterprise. Searching for Zhang Yao on Tianyan Check shows that there are 457 companies under his name, all of which are related to Jingdong. At the same time, Tianyancha included Zhang Yu’s profile:female, born in 1989, from Zhoucun, Zibo, Shandong, JD management trainee, once Worked in Jingdong Finance, and is currently Assistant Liu Qiangdong.

According to public reports, Zhang Yao was admitted to the Central University of Finance and Economics in 2007 with a major in e-commerce, and joined the Jingdong became a”management trainee”. Due to his outstanding ability, Liu Qiangdong was quickly selected as his personal assistant. In August 2016, Zhang Jiao entered the public eye for the first time because she joined Jingdong for only 5 years and was only 27 years old. It replaced Jingdong veteran Sun Jiaming as a legal person or shareholder in dozens of companies.

As for her relationship with JD, there is a According to reports, because of her excellent assistant job performance, Liu Qiangdong intends to entrust her with an important task to transfer her to Jingdong Finance. But Liu Qiangdong was not satisfied with the other assistants, so he transferred her back.

Nowadays, with the listing of JD Mathematics, it is far from what Chen Shengqiang said More than 20 billionaires and more than 300 multimillionaires may not be far away.

What is the prospect of mathematics for Jingdong?

After reading Jingdong Advantages and disadvantages, let’s take a look at the performance of its opponents.

In the Hurun Global Unicorn List 2020 released in August this year, the top 5 Chinese financial technology unicorn companies are Ant Group, Lufax, Jingdong Digital Science, WeBank, Suning Financial Services. The number one giant in the financial technology sector is the Ant Group.

The prospectus shows that in 2017, 2018, 2019 and January-June of 2020, the operating income of Ant Group was 65.4 billion yuan, 85.7 billion yuan, and 120.6 billion yuan respectively. The net profit was 6.95 billion yuan, 667 million yuan, 16.957 billion yuan and 21.234 billion yuan, respectively.

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Mapping/Shenran Finance

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Mapping/Shenran Finance

In terms of the number of users, the Ant Group’s prospectus quoted iResearch’s research data showing that China’s mobile Internet user group reached 877 million in 2019, and as of the end of June 2020, one or more of them have been used on the Ant Group platform. There are 729 million users of this digital financial service.

As shown in the figure above, from the data point of view, Whether it is revenue, net profit or number of users, Ant Group has an absolute advantage over Jingdong Mathematics, its leading position is difficult to shake for a while.

In fact, the Ant Group itself has such popular products as Yu’ebao, and JD Finance can only rely on the JD ecology at the beginning. When the C-side payment market has been almost completely occupied by Ant Group and Tencent Tenpay, rely on Jingdong e-commerce, This is JingdongThe advantage of mathematics is also the ceiling.

In the opinion of Zhuang Shuai, founder of Bealead think tank,”Jingdong The company’s advantage lies in the technical strength of JD, the support of e-commerce, logistics, and warehousing systems.JD’s brand image is relatively stable and practical, and it also has differentiated customers, such as some local enterprises and banks. This industry is not entirely Matthew effect. The market is large enough, and the platform made by Alipay is better. Jingdong Digital Science is outstanding in terms of services.”

However, Ant Group also has the advantages of e-commerce, even stronger than JD. However, compared with 360 Mathematics, Baidu Finance, Compared with the financial business of Tencent, JD Digital Science still has certain advantages.

In addition, Li Keshun, the founder of”Big Data Hunter” and the dean of Databao Big Data Research Institute, pointed out that JD The third section of Mathematics is government affairs, which is also an important follow-up of JD Mathematics This part is also the main entry point for new infrastructure construction this year. The subsequent smart government needs such services, and the market is huge.

At this stage, the Jingdong mathematics department seems to have more challenges.

Jingdong Digital Science lost money in the first half of the year, and its This business cannot be compared with Ant Group. Jingdong financial app is far from Alipay, Jingdong has more than 50 million Baitiao (annual active) users, which is an order of magnitude difference compared with the 500 million users of Huabei. Currently, JD Digital Science does not have any competitive products, and its future growth potential is worrying. JD Its user growth is limited. After JD is listed, it still has to face where users come from and the cost of acquiring customers. The problem is too high.” Wang Chao, founder of Wenyuan Think Tank, analyzed.

In recent years, the once-hot Internet finance bubble was burst, and technology + finance became the main theme. In addition to technology, the management, operation and maintenance, upgrade, and service capabilities required by each company in the future to serve customers will be even greater challenges. Jingdong mathematics prospects, but also time to test.

*The title picture comes from a still from”Game of Thrones”.