Liu Qiangdongs shareholding or over 25percent in Jingdong Section is still the actual controller.

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 Liu Qiangdongs shareholding or over 25percent in Jingdong Section is still the actual controller.


Wen / Android

On this years Double 12 day, Jingdong Finance formally renamed Jingdong Digital Technology Holding Co., Ltd. (hereinafter referred to as Jingdong Digital Science and Technology Holdings), at the same time, a series of changes including ownership structure, business model and development concept are also quietly taking place.

Originally known as Beijing Jingdong Shangbo Guangyi Investment Co., Ltd., Jingdong Digital Section was established on September 5, 2012. Its legal representative is Liu Qiangdong. It began to operate independently in October, 2013. It is positioned as a financial technology company and renamed Jingdong Finance on June 20, 2016.

The initial registered capital of Jingdong Section is only 1 million yuan. After several capital increases and equity changes, six years later, Tian Eye Checks latest information shows that the registered capital of Jingdong Section has increased to 3.061 billion yuan.

Meanwhile, as the former largest shareholder, Liu Qiangdongs share-holding ratio dropped from 16.67% to 14.20%. The former second largest shareholder, Suqian Dongtai Jinrong Investment Management Center (Limited Partnership) (hereinafter referred to as Dongtai Jinrong), increased from 15.12% to 16.13%, becoming the new largest shareholder.

But this does not mean that the Beijing-East Department of Mathematics is out of Liu Qiangdongs control.

According to the first financial and economic data, Liu Qiangdong holds 99% equity of Suqian Taihe Sifang Investment Consulting Co., Ltd. and 100% equity of Suqian Darong Hengyuan Management Consulting Co., Ltd. respectively. He holds 70% equity of Dongtai Jinrong Co., together with 14.20% equity of Dongtai Jinrong Co., Ltd. as a natural person. Liu Qiangdong holds more than 25% equity of Jingdong Digital Section, thus forming actual control over Jingdong Digital Section. u3002

Can we turn the deficit into profit this year?

In recent years, Beijing-East Section has taken the free ride of Internet finance in the era of large-scale capital management, and the scale of financial business has expanded rapidly.

According to the Beijing Jingdong Century Trading Co., Ltd. in 2018 the first issue of asset-backed notes (bond circulation) solicitation instructions, CITIC Securities - Beijing Finance Beijing Credit Credit Yield 1 Trust Beneficiary Rights Asset Support Special Plan Credit Rating Report, CITIC Securities - Beijing Finance Beijing Credit Yield 1 Trust Beneficiary Rights Asset Support Special Plan Instructions, etc. The scale of assets has expanded rapidly in the past five years. In 2014, the scale of financial assets in Jingdong was only 1.233 billion yuan, which doubled to 4.043 billion yuan by 2015, and nearly doubled in 2016. The scale of assets increased to 11.423 billion yuan. By the end of 2017, the total size of assets reached 26.868 billion yuan.

However, in terms of asset composition, other accounts receivable and long-term equity investment account for 48.76% and 47.15% respectively, mainly due to the purchase of ABS secondary assets by Jingdong Section, the increase of accounts receivable of Jingdong internal company and the increase of subsidiariescapital. Overall, from 2015 to 2016, the operating income of Jingdong Finance increased rapidly, reaching 613 million yuan in 2016, 33.958 times higher than that at the end of 2015, and 1.652 billion yuan in 2017, 169 times higher than that of the previous year, mainly due to the increase of operating support service fee income and technical service fee income.

But at the same time of the growth of business income, the financial labor costs and market promotion activities in the expanding period of Jingdong are also increasing, which makes the business costs grow rapidly. Among them, in 2017, the operating expenses, sales expenses and management expenses of Jingdong Finance were 706 million yuan, 504 million yuan and 2.831 billion yuan, respectively, which led to a rapid decline in the total assets return rate and net assets return rate of Jingdong Finance.

In 2017, the net profit of Jingdong Finance was -2.087 billion yuan, which was in a loss state. In fact, in recent years, with the expansion of business and the increase of early investment, the loss range of Jingdong Finance was also expanding: 30,000 yuan at the end of 2014, 1.43 million yuan in 2015 and 568 million yuan in 2016.

As of the end of the first quarter of this year, there are signs of turning losses into profits in Jingdong Finance, with net profit of 21.4 million yuan in the period. Whether it can achieve profits this year depends on the year-round performance.

Plan to go public within five years

However, it is clear that the loss of performance has not really affected the valuation of Jingdong Section. So far, Jingdong Section has completed three rounds of financing.

On January 16, 2016, Jingdong Finance raised 6.65 billion yuan, Sequoia Capital China Fund, Jiashi Investment and China Taiping led the investment, with a post-investment valuation of 46.65 billion yuan.

At the beginning of 2017, the total amount of A+round financing started by Jingdong Finance Company was 14.3 billion yuan. Among them, Jingdong Group sold 28.59% of its shares and opened them to new investors and management, mainly Liu Qiangdong. After the completion of A + financing, the value of Jingdong Financial Investment is 58 billion yuan.

In July 2018, Jingdong Finance announced the signing of the B-round financing agreement, with a financing amount of about 13 billion yuan. The investors include China Gold Capital, Bank of China, CITIC Construction Investment and CITIC Capital. After the financing, the valuation of Jingdong Finance is about 133 billion yuan.

Recently, a financial management plan based on the equity of Jingdong Section, which was acquired by First Finance and Economics, showed that Jingdong Section planned to go public within five years.

Secretly Layout Network Loan Business

In recent years, the business sector of Jingdong financial expansion can be summarized into nine financial modules: supply chain financial business, consumer financial business, wealth management business, payment business, crowdsourcing business, insurance business, securities business, rural financial business, financial science and technology business.

As early as April this year, Chen Shengqiang, CEO of Jingdong Mathematics Branch, announced that in the future, Jingdong Mathematics Branch will not do finance and transform into the role of science and technology output, and its business form will change from B2C to B2B2B2C.

Since then, Jingdong has begun to restructure its corporate structure. According to media reports, in May this year, several branches in Jingdong were reorganized into two service groups: individuals and enterprises. Among them, personal service group includes consumer finance business, wealth management business, securities business, crowdsourcing business, as well as business modules related to C-terminal in rural finance, insurance business and payment business, while enterprise service group includes supply chain finance business, financial science and technology business, rural finance, insurance business and payment business related to B-terminal business module.

On November 20, 2008, at the JDD-2018 Beijing East Digital Science and Technology Global Explorer Conference, Beijing East Digital Science and Technology announced the launching of the Beijing East Intelligent City Research Institute and the establishment of the Beijing East Digital Academy of Agriculture and Animal Husbandry, in order to further enhance the integrated application of science and technology in industry, University and research. A series of new strategies were announced. In the future, Jingdong Several Branches will include many independent brands such as Jingdong Finance, Jingdong City, Jingdong Agriculture and Animal Husbandry, Jingdong Shaodong, and Jingdong Molybdenum Media. But among them, Jingdong Finance is still one of the core businesses, which even went against the trend in the downturn of the online lending industry. Recently, two P2P platforms named Xuhang Internet Loan and Hefeng Internet Loan have been widely concerned by the outside world. The former is operated by Tianjin Daxinjun and Network Technology Co., Ltd. and the latter is operated by Beijing and Fengyongxin Financial Information Service Co., Ltd. It is understood that both platforms are wholly owned subsidiaries of Jingdong Section. Source: First Financial Responsibility Editor: Wang Fengzhi_NT2541

On November 20, 2008, at the JDD-2018 Beijing East Digital Science and Technology Global Explorer Conference, Beijing East Digital Science and Technology announced the launching of the Beijing East Intelligent City Research Institute and the establishment of the Beijing East Digital Academy of Agriculture and Animal Husbandry, in order to further enhance the integrated application of science and technology in industry, University and research. A series of new strategies were announced. In the future, Jingdong Several Branches will include many independent brands such as Jingdong Finance, Jingdong City, Jingdong Agriculture and Animal Husbandry, Jingdong Shaodong, and Jingdong Molybdenum Media.

But among them, Jingdong Finance is still one of the core businesses, which even went against the trend in the downturn of the online lending industry.

Recently, two P2P platforms named Xuhang Internet Loan and Hefeng Internet Loan have been widely concerned by the outside world. The former is operated by Tianjin Daxinjun and Network Technology Co., Ltd. and the latter is operated by Beijing and Fengyongxin Financial Information Service Co., Ltd. It is understood that both platforms are wholly owned subsidiaries of Jingdong Section.