Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

How Far is JD.com from Making Profits under the Financial Analysis Business Model of Self-support and Heavy Property Business?

Authors
YUXI CHENGChengyuxi6@gmail.com
Kashi University, School of Economics and Management, KASHI CHINA
Corresponding Author
Available Online 26 March 2022.
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.

Download article (PDF)

Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
10.2991/aebmr.k.220307.286
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.286How to use a DOI?
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  -