How Far is JD.com from Making Profits under the Financial Analysis Business Model of Self-support and Heavy Property Business?
- DOI
- 10.2991/aebmr.k.220307.286How to use a DOI?
- Keywords
- component; business model; Jingdong; e-commence; financial analysis
- Abstract
With the rapid development of the Internet, China has become the world’s largest Internet country. More and more people have accepted online shopping as a new way of lifestyle. China also has the most online customers. By March 2020, the number of daily active Internet users had reached 700 million, an increase of 100 million from 2018, according to CNNIC. As one of the leading companies in the online shopping industry, JD.com attracts billions of people every day, making it one of the world’s top 500 companies. As Fortune shows, JD.com ranked 59th on the 2021 Fortune 500 list. However, statistics also show that JD.com is losing money every year. Compared with Alibaba, JD.com has adopted a self-operated, realty-focused business model, forming a profitable process. Now, however, JD.com is facing its old rival Alibaba and its new rival Pinduoduo, which has been popular since 2018. How long can JD continue with this business model? How far is JD from profitability?
This paper will discuss the financial status of JD.com in the self-support and heavy property business model, which makes low profit and analysis the financial outcome. We will analyze the accounting results and financial results. We will use the balance sheet, profit statement, and cash flow statement in terms of accounting results to analyze Jingdong under the Harvard analysis framework. Based on the financial results, we will analyze Jingdong Group from four aspects: debt solvency, profitability, operating ability and development ability. Then, this paper will put forward suggestions and prospects.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - YUXI CHENG PY - 2022 DA - 2022/03/26 TI - How Far is JD.com from Making Profits under the Financial Analysis Business Model of Self-support and Heavy Property Business? BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 1748 EP - 1752 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.286 DO - 10.2991/aebmr.k.220307.286 ID - CHENG2022 ER -