After the financial statements of JD.com for the third quarter of 2016 came out, you will be surprised to find that JD.com, which has a market scale all over the country, is actually in a state of loss, and it is getting worse. This loss is even more than last year.

51%.

Looking back two years, in 2015, JD.com’s net loss was about 9.4 billion yuan. In 2014, JD.com’s net loss was 5 billion yuan.

JD.com is losing money almost every year, but it is getting bigger and bigger, which is very puzzling.

JD.com was founded by Liu Qiangdong in Zhongguancun, Beijing in 1998. It was listed on the NASDAQ stock exchange in the United States in 2014. Its annual turnover in 2015 was US$28.847 billion and its current market value is close to US$40 billion. It is comparable to giants such as Tencent and Baidu.

* Ranked among the top ten Internet companies in the world.

It is hard to imagine that a company of this size has not yet made a profit and has been losing money.

However, after seeing JD.com's financial statements, JD.com's investors not only were not shocked, but also acted very optimistically, and some even increased their holdings of JD.com's shares.

Institutional investors are not like ordinary retail investors who buy when they see a short-term rise and sell when they see a bearish fall.

These professional financial analysts must have seen JD.com's future market prospects, so they made such a big bet on JD.com.

In fact, if we look carefully at JD.com's financial statements, we will find that JD.com's turnover is increasing year by year, and the increase is quite large.

Moreover, the so-called losses are not actually operating losses, but losses caused by investment expenditures exceeding profits.

If it is an operating loss, it means that the company is really losing money and is working hard to run the current business.

But what we see is that JD.com suffered losses due to excessive investment expenditures. Its cash flow was very sufficient and it did not encounter a major financial crisis or other major events.

In 2014, JD.com invested in Daojia Gourmet Club and Tuniu Travel Network; in 2015, JD.com not only invested in Ele.me, Yiche.com, Fenqile, and additional investment in Tuniu Travel Network, but also led the investment in Tiantian Orchard and Investment

Zestfinance, a big data analysis company, invested in Kingdee Software and Yonghui Supermarket; in 2016, it also fully acquired “No. 1 Store”.

It can be seen that JD.com is laying out the fields of online travel, online catering ordering, fruit categories and big data analysis. In addition to investing in other companies, JD.com is also strengthening and expanding its own business. In addition to the nearly mature JD.com, currently

We are focusing on JD Finance and JD Cloud, intending to seize the two national hot spots of finance and big data to grow the company.

Regarding the development of the Internet, JD.com is actually still in the growth stage and has not yet reached the mature stage of stable profitability.

Jingdong is expanding its layout, and early investment is essential. Only when the scale becomes larger will the advantages of economies of scale be revealed. Once costs come down, profits will naturally rise. Probably those smart investors think so too.

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Although JD.com has invested more than 10 billion yuan in various industries, it still needs to be careful and thoughtful before proceeding.