When the new quarterly financial report strikes, what light can be seen at the end of the tunnel of China Stocks? [Part II]

JD.com: All business lines are steadily advancing, revenue is growing steadily, and there is still much room for improvement in the future

$JD-SW(09618)$The revenue in this quarter was 218.708 billion yuan, YOY+25. 5%, Exceeding Bloomberg's consensus expectation of 215.6 billion yuan, The net profit of Non-GAAP attributable to the mother was 5.05 billion yuan and YOY-9. 2%, exceeding Bloomberg's unanimous expectation of 3.26 billion yuan. The overall adjusted net interest rate was 2.31%, exceeding Bloomberg's unanimous expectation of 1.51% and 3.19% in the same period of 2020. The decline in the company's operating profit rate was mainly due to the increased losses caused by the increased cost investment of JD.com's new business and logistics industry, which led to the overall operating profit rate

In terms of business segments:

In this quarter, JD.com's retail revenue reached 198.08 billion yuan, a year-on-year increase of 22.98%;

JD.com Logistics achieved revenue of 25.749 billion yuan, a year-on-year increase of 43.3%;

The new business realized revenue of 5.732 billion yuan, a year-on-year increase of 33.24%;

In this quarter, JD.com achieved commodity sales revenue of 186 billion yuan, YOY+22.9%, service and other revenue of 32.699 billion yuan, YOY+43.3%, and omni-channel GMV increased by 100% year-on-year in the first three quarters.

Among them, the net income of electronic products and household appliances is 110.881 billion yuan, YOY+18. 8%,The sales revenue of daily necessities was 75.127 billion yuan, YOY+29. 4%. For the single-digit growth performance of daily necessities in Alibaba, JD.com's performance in daily necessities sales is undoubtedly better.

Revenue from platform and advertising services16.8 billion yuan, YOY+35. 1%The growth rate of the company's advertising revenue exceeds the growth of self-operated business, mainly because the growth rate of categories with high commission rates such as daily consumer goods and clothing has increased; Revenue from logistics and other services is 15.9 billion yuan, YOY+53. 1%. In this quarter, the external customer revenue of JD.com Logistics continued to exceed 50%, and reached a new high in this quarter.

User data situation

According to user data, 20.3 million new active users were added in this quarter, which made the number of active users in JD.com increase by 25% year-on-year to 552 million. What is even more surprising is that the average shopping frequency of single users increased by 23% year-on-year in the third quarter.

Summary of JD.com Q3 Quarterly Report:

Compared with competitors Alibaba and Pinduoduo Inc., JD.com's financial report this quarter is undoubtedly more stable. Benefiting from the new pattern created by anti-monopoly, And the forward-looking layout of the company, At present, JD.com has built a deep moat in the fields of self-operated e-commerce, logistics, JD HEALTH and instant retail. Under the background of sluggish overall consumption environment, JD.com's performance in daily necessities sales and category expansion far exceeds that of the industry this quarter, while there is still room for user growth, and the purchase frequency of users is eye-catching this quarter, indicating that JD.com's stickiness to users is rapidly increasing, and we have maintained a optimistic view of JD.com for a long time.

Pinduoduo Inc.: Revenue fell short of expectations and profitability improved

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Unaudited financial results for the third quarter of 2021

Total revenue was RMB 21.506 billion, an increase of 51% compared with RMB 14.21 billion in the same period of 2020, mainly due to the increase in revenue from online marketing services.

Revenue from online marketing services and other businesses was RMB 17.946 billion, an increase of 44% compared with RMB 12.485 billion in the same period of 2020.

The revenue from trading services was RMB 3.477 billion, an increase of 161% compared with RMB 1.332 billion in the same period of 2020

Sales and marketing expenses were RMB 10.05 billion, a slight decrease from RMB 10.07 billion in the same period of 2020.

General and administrative expenses were RMB 335 million, a decrease of 9% compared with RMB 368.6 million in the same period of 2020.

R&D expenses were RMB 2,422.4 million, an increase of 34% compared with RMB 1,804.9 million in the same period of 2020. This increase is mainly due to the increase in the number of employees and the recruitment of more experienced R&D personnel.

It can also be clearly seen from the above figure that Pinduoduo Inc. 's operating expenses have obviously declined in the past three quarters, and the company obviously pays more attention to the improvement of efficiency rather than the expansion of scale.

The operating profit in this quarter was RMB 2,139.3 million, and the operating loss in the same period of 2020 was RMB 1,295.7 million. The non-GAAP operating profit in this quarter was RMB 3,260.7 billion, and the non-GAAP operating loss in the same period of 2020 was RMB 339.8 million.

The net profit attributable to ordinary shareholders in this quarter was RMB 1.64 billion, while the net loss in the same period of 2020 was RMB 784.7 million. The non-GAAP net profit attributable to ordinary shareholders in this quarter was RMB 3.15 billion, compared with RMB 466.4 million in the same period of 2020.

It can be seen that Pinduoduo Inc. has achieved profitability for two consecutive quarters. While the operating expenses have been continuously reduced, the company has finally started to make steady profits, which is also reflected in the fact that the gross profit margin of the company has improved for three consecutive quarters, from 51.52% to 69.5%.

From the user data, the growth of monthly users and annual active buyers slowed down:In this quarter, the average number of monthly active users was 741.5 million, an increase of 15% compared with 643.4 million in the same period of 2020, and the growth of monthly active users slowed down obviously. The number of active buyers in the 12 months ended September 30, 2021 was 867.3 million, an increase of 19% compared with 731.3 million in the 12 months ended September 30, 2020.

Summary of Pinduoduo Inc. Q3 Quarterly Report:

After the publication of the third quarter report of Pinduoduo Inc., The stock price plummeted by nearly 16%. In the third quarter, although the company achieved an operating income of 21.51 billion yuan, which also increased by 51% year-on-year, it was still far lower than the market expectation of 26.47 billion yuan. At the same time, the growth rate also declined compared with 89% in the second quarter, and the growth of users also slowed down obviously. Therefore, it led to pessimistic expectations for Pinduoduo Inc. 's future at a time when domestic e-commerce competition is fierce.

According to the performance meeting, Chen Lei, chairman and CEO of Pinduoduo Inc., said that after the second quarter, all the profits of this quarter will be invested in the "10 billion agricultural research project". "We will shift our development focus more to research and development, and take advantage of Pinduoduo Inc. 's technological advantages to further promote agricultural digitalization." In August this year, Pinduoduo Inc. set up a "10 billion agricultural research project", announcing that the possible profits in the second quarter and the next few quarters will be given priority to the project. At the end of September, the "Billion Agricultural Research Project" was approved by the shareholders' meeting. After all the profits in the second quarter are invested in this special project, all the profits in Pinduoduo Inc. this quarter will continue to be invested in this special project to further promote the inclusiveness of agricultural science and technology.

Because the huge investment in agriculture is difficult to make profits in the short term and the trend is difficult to judge, we also take a wait-and-see attitude towards Pinduoduo Inc. for the time being while the domestic e-commerce competition is still intensifying.

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Xiaomi Group: Revenue growth is trapped in the decrease in mobile phone shipments, the growth rate of the Internet is bright, and gross profit margin and ASP are improved

This quarter,$XIAOMI-W(01810)$Revenue was 78.1 billion yuan, a year-on-year increase of 8.2%; Non-Gaap's net profit reached 5.2 billion yuan, up 25.4% year-on-year. Due to the shortage of supply chain, Xiaomi's mobile phone shipments in this quarter were generally lower than expected. However, thanks to the improvement of single mobile phone and the growth rate of Internet revenue, the gross profit margin continued to improve in this quarter, and the growth rate of net profit was faster than that of revenue.

In terms of business:

1. Smartphones

Smartphone segment revenue increased by 0.5% from RMB 47.6 billion in the third quarter of 2020 to RMB 47.8 billion in the third quarter of 2021. Smartphone shipments decreased from 46.6 million units in the third quarter of 20205.8%By the third quarter of 2021, 43.9 million units were mainly due to the shortage of global core components (including SoC (System on Chip)).

The average selling price of smart phones ("ASP") increased by 6.7% from RMB1, 022.3 per smartphone in the third quarter of 2020 to RMB1, 090.5 per smartphone in the third quarter of 2021. The increase of ASP is mainly due to the increase of high-end smartphone shipments in the third quarter of 2021.

Gross profit margin of smartphone segment increased from 8.4% in the third quarter of 2020 to 12.8% in the third quarter of 2021, mainly due to the increase of smartphone ASP by 6.7%. At the same time, the cost of each mobile phone remained stable.

2. IoT and consumer products

The revenue of IoT and consumer products increased by 15.5% from RMB 18.1 billion in the third quarter of 2020 to RMB 20.9 billion in the third quarter of 2021, mainly due to the popularity of Xiaomi Tablet 5 Series launched in August 2021 and the increase in sales of smart TVs and air conditioners. The revenue of smart TV and notebook computers increased by 20.3% from RMB 5.9 billion in the third quarter of 2020 to RMB 7.1 billion in the third quarter of 2021, mainly due to the further expansion of large-screen TV product portfolio (including Xiaomi TV Master 77 "OLED and Redmi MAX 86") and the increase of smart TV ASP.

The number of AIOT connected devices exceeded 400 million for the first time, a year-on-year increase of 33%; More than 5 pieces of equipment connected to the company's AIOT platform have over 8 million users, YOY+42.8%. (Statistics do not include smart phones, tablets and PCs).

Gross profit margin of IoT and consumer products segment decreased from 14.2% in the third quarter of 2020 to 11.6% in the third quarter of 2021, mainly due to the increase in product portfolio and prices of some core components.

3. Internet services

The revenue of Internet service segment increased by 27.1% from RMB 5.8 billion in the third quarter of 2020 to RMB 7.3 billion in the third quarter of 2021, mainly due to the growth of the company's advertising and game business. In the third quarter of 2021, thanks to pre-installation and global user scale,Expansion, Xiaomi's advertising business quarterly revenue reached a new high, reaching RMB 4.8 billion, up 44.7% year-on-year.Overseas Internet revenue reached 1.5 billion yuan, YOY+110%, accounting for 19.9% of the total Internet service revenue, a record high.

In September 2021, the monthly active users of MIUI increased by 32.0% year-on-year to 485.9 million, among which the monthly active users in Chinese mainland increased by 16.4% year-on-year to 127.3 million.

The gross profit margin of Internet Service Division increased from 60.4% in the third quarter of 2020 to 73.6% in the third quarter of 2021, mainly due to the increase in the proportion of advertising business revenue and the increase in gross profit margin of financial technology business.

Summary of Q3 Quarterly Report of Xiaomi Group:

In the third quarter, Xiaomi's overall performance was in line with expectations. Because of the shortage of supply chain, the company's smartphone division revenue was generally lower than expected. Looking ahead, in the mobile phone field, Xiaomi still faces fierce competition, and domestic OV and glory continue to be strong,In foreign countries, Xiaomi's penetration space is limited, and it is less likely to compete with Apple in high-end fields. We are cautious about Xiaomi's smart phone business.

This quarter, Xiaomi's surprise lies in the performance of Internet revenue, which increases the proportion of gross profit in the overall business, while the proportion of gross profit in mobile phones begins to decline. The increase of Internet revenue is conducive to improving Xiaomi's overall gross profit margin and smoothing the overall revenue. Therefore, for Xiaomi, the realization of the Internet in the future is one of the biggest highlights.

AIOT, on the other hand, maintains a relatively steady growth. In the future, Xiaomi will continue to optimize its product portfolio and improve its product manufacturing and categories, such as smart home appliances, refrigerators, pads and other products with good feedback. AIot's product line is rich and diverse, and it is expected that its business will continue to grow in the future.

Xiaomi has announced that it will mass-produce the first batch of electric vehicles in 2024. In the future, from an ecological point of view, there are still certain expectations for Xiaomi cars.

In the short term, After a continuous decline, Xiaomi's valuation is no longer expensive, However, it is still difficult for the company's revenue to improve on a large scale in the next two or three quarters. If the new mutated virus rages again, it will have a great impact on Xiaomi's overseas business. In the short term, we take a cautious wait-and-see attitude towards Xiaomi. In the long term, the company's focus lies in the continuous improvement of Internet revenue and the forward options of electric vehicles.

Aauto Quicker: Stickiness is improved, and e-commerce and marketing are realized

$KUAISHOU-W(01024)$In this quarter, the revenue was 20.619 billion yuan, YOY +36.22%. In this quarter, the marketing revenue performed brilliantly, and some operating data also performed quite well.

Online marketing, live broadcast and other services accounted for 53.2%/37.7%/9.1% of revenue respectively, while the proportion of live broadcast revenue continued to decline, while the proportion of marketing revenue increased to over 50%, becoming the main source of revenue for the company.

1. Online marketing services:

Online marketing service revenue increased by 76.5% from RMB 6.2 billion in the same period of 2020 to RMB 10.9 billion in the third quarter of 2021, mainly due to the increase in traffic and the number of advertisers, which benefited from the improvement of advertising accuracy and advertisers' user experience.

2. Live broadcast:

In the third quarter of 2021, the revenue from live broadcast business was RMB 7.7 billion, and in the same period of 2020, it was RMB 8 billion.

3. Other services:

Revenue from other services increased by 53.0% from RMB 1.2 billion in the same period of 2020 to RMB 19. 5% in the third quarter of 2021100 million yuan, mainly driven by the growth of e-commerce business,In this quarter, Aauto Quicker e-commerce achieved GMV of 175.8 billion yuan and YOY+86%, of whichThe proportion of GMV in closed-loop transactions of Aauto Quicker stores continued to increase to 91%, mainly because Aauto Quicker has invested more resources and energy in the underlying infrastructure construction, gradually improving the daily penetration rate of e-commerce live broadcast, continuously expanding SKU, enriching supply, improving matching efficiency, strengthening user experience, and gradually improving the exposure of e-commerce.

The construction of service provider system is also one of the key points of e-commerce development in Aauto Quicker. In the third quarter, brand bases and strategic service providers began to be vigorously developed. The proportion of service providers bound to merchants in Aauto Quicker to pay GMV continued to increase, which effectively helped Aauto Quicker merchants to improve their professional and systematic operation capabilities. In addition, in terms of category expansion, The company introduced more products into the official preferred platform Good Things Alliance, and made more refined matching optimization. In the third quarter, the proportion of Good Things Alliance GMV continued to increase, and the investment in brand e-commerce continued to increase. Brand GMV led the e-commerce market, and made successful cases in major industries such as clothing, fast sales, digital, home appliances, jewelry and jade. More and more brands have settled in Aauto Quicker platform.

In the third quarter, the company continued to increase investment in trusted e-commerce, introduced more safeguard measures for user experience, and strengthened platform governance.The monthly ARPPU continued to grow. In September this year, the monthly repurchase rate of Aauto Quicker e-commerce further increased to over 70%.

User data:In this quarter, the average MAU of Aauto Quicker reached 572 million, YOY+19.5%, and the average DAU reached 320.4 million, YOY++17.9%, with a net increase of 66.7 million in a single quarter. Mainly because the company continuously optimizes the user acquisition efficiency and retention rate, continuously deepens and expands the supply of content, goods and services, and continuously improves the industry-leading efficient personalized content recommendation technology.

Operational highlights:

1. In this quarter, the average daily traffic of applications in Aauto Quicker increased by nearly 60% year-on-year.

2. Continue to strengthen the construction of community atmosphere and social attributes with platform characteristics. The ratio of DAU/MAU in Aauto Quicker was 55.9% in this quarter, which remained basically stable, indicating that users have strong stickiness. In terms of user usage time, the average daily usage market of active users in Aauto Quicker in 2021Q3 is 119 minutes, +35% year-on-year;

3. Continue to build the content side and optimize the content distribution strategy.The DAU of Aauto Quicker short dramas in Q3 reached 230 million, and there were more than 850 short dramas with a cumulative viewing volume of more than 100 million;

4. Sports content is also the content category that has been invested heavily since last year, and the consumption of sports content in Q3 has increased by more than 150% compared with last year.

Summary of Aauto Quicker Q3 Quarterly Report:

As the worst performing company in Hang Seng Technology Index this year, After listing, the market value has dropped from more than 1 trillion to less than 400 billion at present. Let the market worry about the prospect of Aauto Quicker obviously improve. From the ratio of DAU/MAU in Aauto Quicker, Aauto Quicker's stickiness to users is indeed steadily improving. In terms of average daily usage time, Aauto Quicker is still improving in 21 years compared with 20 years. According to the data disclosed by relevant data companies, in terms of the proportion of average daily usage time,Aauto Quicker increased from 7.9% in the same period last year to 10.5% this year.

In the medium and long term, we are still optimistic about the short video track, and the growth in the third quarter also gives Aauto Quicker confidence to achieve the goal of 400 million DAU in the medium and long term. The increase in users and duration is mainly due to the provision of more content, goods and services. On the content side, the pan-knowledge debate competition has been launched in the pan-knowledge vertical category, and the viewing volume and duration of short plays and sports have also been well improved; On the commodity side, introduce new categories to enrich user choices; On the service side, we actively explore more opportunities for video-based scenes, and at the same time, according to the characteristics of public and private domains, we continuously improve distribution efficiency and improve users' consumption experience. Recently, we have added more content that pays attention to creators in a single column. On the one hand, we have strengthened users' recommendation of interesting content, and on the other hand, we have strengthened the transformation of public and private domain traffic. At present, the traffic is growing faster than expected. In the future, the user demand will be given priority, and the development strategy will be continuously iterated.

On the advertising side, Aauto Quicker's advertising performance was excellent in the third quarter: under the background of advertising supervision and macroeconomic downturn, some advertisers contracted and adjusted their budgets. However, the company's advertising growth rate is faster than that of the industry, and it continues to gain more market share. The reasons are as follows: 1) The short video industry as a whole has gained more favor from advertisers, overlapping the company's social platform and content community positioning, and the combination of public and private domain traffic, which has a certain advertiser budget inclination. From the platform itself, Q3 traffic grew strongly, which helped the advertising business to maintain rapid development. With the optimization of advertising materials and recommendation ability, the advertising loading rate of Q3 Company still increased slightly as planned, and new advertising spaces were opened. 2) The advertising system and products are constantly iterated, and Xiaodiantong and vermicelli are connected to form a magnetic Taurus. Customers can put them in public and private domains at the same time, improving decision-making efficiency and releasing more advertising space on the basis of traffic. 3) Improve sales and service capabilities, actively expand industry coverage, optimize direct sales and agency channel management, and Aauto Quicker is gradually recognized by brand advertisers; 4) Aauto Quicker provides advertisers with an endogenous closed-loop trading ecology, and a large number of e-commerce GMV enables Aauto Quicker to maintain itself in a conditional environmentThe pace of growth. Maintain confidence in the growth of its own advertising business for a long time. There is still a lot of room for the market share of advertising business in Aauto Quicker at present. In the future, it will strengthen the optimization of user experience, empower advertisers and improve its liquidity.

In terms of realization, Aauto Quicker is also reducing the proportion of revenue from live broadcast, while the proportion of revenue from online marketing and other services is increasing. In 2021, marketing has become the largest source of revenue in Aauto Quicker. Looking forward to the future, whether Aauto Quicker can open up greater growth in interest e-commerce and online marketing with high stickiness is the biggest attraction in the future.

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Disclaimer: The above content represents only the personal views of the poster and does not constitute investment advice on this platform.