JD.com turns loss into profit, but the way forward is still long

Nov 19, 2019 PinDuoDuo

On November 15, 2019, JD.com released its Q3 unaudited financial report. According to the report, Q3's revenue reached 138.4 billion, with a year-on-year increase of 28.7%. The disposable income of the disposal assets was removed, the operating profit was 1.99 billion (Q3's operating loss in 2018 was 650 million), the non-operating profit rate was 1.47%; net profit was 550 million (non-withheld), and net profit rate was 0.4%.

In 2019, JD.com cancelled the disclosure of quarterly GMV. The net profit under the General Accounting Standards has been achieved in the past three quarters. In spite of the non-recurrent factors (such as Q1 other income was 6.9 billion and Q3 asset disposal income was 2.99 billion), JD.com is at last able to make a strong announcement of the deficit. Curiously, the market value of JD.com, which suffered a huge loss, is more than $ 70 billion. However, the market value of JD.com, which made a profit, is less than $ 50 billion. Doesn't Wall Street know how to count?

It marks the end of the old era and the beginning of the new era for JD.com to stop disclosing quarterly GMV and strive to continue to make profits under the general accounting standards. And it means that JD.com will change from pursuing the growth of transaction scale to pursuing profits.

It maybe a right way for enterprises to pursue profits, but situations are different in JD.com.