From Letv to jd’s supply chain finance, jd or second Letv
Yesterday, letv held a temporary meeting of shareholders, jia yuting in the us financing has not returned, sun hongbin said Letv can overcome the difficulties. Gathered outside the venue for 20 suppliers collection Letv owed to suppliers in many suppliers, distributors, many enterprises loss tens to hundreds of millions of yuan, that many suppliers in Letv containment building requirements “Letv also money”. Letv’s supply chain finance has almost collapsed.
From Letv’s supply chain finance, which has a similar model of jd.com, some argue that the company is merely maintaining a good run, and that there are big pitfalls. “Jingdong accounts and extend the payment days, on the one hand to take up suppliers for their cash flow blood transfusion; on the other hand lend hands to supplier to add leverage, now scale up to hundreds of billions, far higher than Letv.”
Jd.com’s default payment is “the same” as BBB 0.
In terms of suppliers, in 2013, mengxing meng, the founder of the domestic e-commerce brand aff oil, publicly reprimanded jd.com for four months in arrears, and formally withdrew from jd.com.
In June 2013, asustek also suspended its full-line products to jd.com on June 18 for concern about the delay and price confusion of jd.com’s payment days.
In July 2015, jd.com was also exposed to three months ‘worth of payments in the Danish commodity center for about 400,000 yuan. Until July 6 last year, Danish companies said that jd.com had been delaying delivery of payments for various reasons, leading to a bigger impact on the company’s operations.
Earlier, from the name 蒾 鍸 _ the lion’s netizens 18:52 points on May 7, 2015 in weibo published an article “the jingdong my company more than 4200 payment in arrears for four months, my company personnel suffering, such as a cat on hot bricks were dead!” Long weibo.
According to “times weekly” reported on August 22, 2013, at the time of the force when the electricity business insiders revealed that when the force in the process of jingdong platform management, be jingdong default margin for half a year, far beyond the contract. In the middle of 2011, the company entered jd platform and decided to quit after only half a year.
Report points out, with rivals Tmall fight for market share, jingdong poured its low-price strategy force suppliers to promotion, price cut costs but let suppliers taking responsibility, but under partial businessman from jingdong, also stirred the highlight back store.
Jd: suppliers are a constant source of cash flow
Jd.com is a large online mall, with large chains of money in the middle, through suppliers and sales at 360buy. The supplier is not only the supplier of jd.com, but also the provider of free funds. Mr Liu once summed it up perfectly: “a company with a net profit may die, but a company with a good cash flow will not die.”
In 2016, jd.com reported a 52.1 days of accounts payable period. In the first quarter of 2015, the accounts for the first quarter of 2016 were 41.9 days and 46.3 days respectively. The extension of the cycle means that jd will take up to two months to pay its suppliers or merchants after receiving the money. As the results reveal, the company is not just extending the accounts payable cycle, but the amount of accounts payable is also increasing. By the end of December 2015, jd.com had managed to account for rmb29.8bn in payments to others, up from rmb41.5bn at the end of September 2016.
Jd.com seems to have a lot of money on its surface, but the main money is in the cash flow, which is enough to do other things for a short period of time. For this, one netizen calculates an account – if the company is calculated by the annual revenue of 10 billion yuan, the payment will be delayed by three months, with a cash flow of 2.5 billion RMB. Delay six months repayment, hand is 5 billion!
With 12 years of losses and 11 years of losses on jd, the 2016 financial results finally showed a profit, and whether the hidden dangers of jd’s supply chain finance will be alleviated?