The SEC has submitted an updated prospectus

To determine the IPO pricing range of 16 U.S. dollars ~18 Dollar/ads, the highest financing scale from the previous 1.5 billion U.S. dollars to 1.939 billion U.S. dollars, of which about 1 billion ~12 billion dollars will be used to build electricity infrastructure, including the purchase of land use rights, build new warehouses, purchase logistics and transportation.

Beijing East will be listed in the Nasdaq trading, the stock trading code for "JD", underwriters include Merrill Lynch BofA, UBS Investment Bank, Allen, Barclays, Huaxing Capital, Jefferies investment company. According to the U.S. financial website IPO Scoop reported that the Beijing-East market Time set for May 22.

The updated prospectus has the following highlights:

I. ON valuation

According to the prospectus, the IPO will sell about 93.686 million ads, and if underwriters do not exercise excess placements in the IPO, about 1.38 billion ads after the IPO, based on the 16~18 Dollar/ads's IPO price, After the BoE IPO, the valuation was between $22.08 billion trillion and $24.84 billion trillion.

Second, about the operation of the Beijing-East electric business platform

From the prospectus, you can see the operating data of Jingdong platform: As of the end of 2013, there are 47.4 million active users, 323 million of total orders, total merchandise transactions (GMV) for 125.5 billion yuan, up 71.2% year-on-year. With the expansion of the category on the BoE platform, sales of electronic products and household appliances fell from 80.1% to 63.6% from 2011 to 2013, while sales of other department stores rose from 19.9% to 36.4% per cent.

It is worth mentioning that the Beijing-East October 2010 on the line of pop open platform on the overall turnover of jingdong in the contribution of the annual increase. The open platform is now in the sellers of more than 29,000, as of the end of March this year, in Jingdong 40.2 million inventory units (SKU), the open platform contributed 94%. From 2011 to 2013, the total amount of commodity transactions in Jingdong (GMV) was RMB 32.7 billion, 73.3 billion yuan, 125.5 billion yuan, of which the open platform accounted for 8.87%, 22.65% and 25.34% respectively.

According to the prospectus, we can calculate the average commission ratio of the Beijing-East open platform. From 2011 to 2013, the Commission income on the Beijing-East open platform was about RMB 389,000, 145 million yuan and 185 million yuan, divided by corresponding GMV, the average commission ratio of Beijing-East open platform was 0.01%, 0.87% and 0.58% respectively. In contrast, the rate of commission on the day Cat and the platform is about 0.5% to 5%.

In addition, in warehousing and logistics, as of the end of March this year, Jingdong has established 86 warehouses in 36 cities, 1620 distribution stations and 214 stations in 495 cities nationwide, and a total of 240 million distribution personnel.

Third, on the financial situation of Jingdong

According to the prospectus, Beijing East's revenue comes mainly from two aspects, one is online direct selling, the other is from open platform trading, advertising revenue and other value-added services including supply chain finance.

At the moment, online direct sales contributed to most of the capital's income, but revenue from the open platform grew fast. The results showed that the total revenue of Beijing-east 2013 years was 69.34 billion yuan, an increase of 67.6%, of which the online direct sales contributed 67.018 billion yuan, accounting for 96.65%, services and other income of 2.322 billion yuan, accounting for more than 3.35%. But with vertical comparisons, services and other incomes have grown rapidly in recent years, with revenue rising by 122% per cent last year compared with 2012.

The rise in gross profits in recent years is due in large part to the fact that the open platform is on the line because Commission and value-added services do not incur operating costs and thus have higher margins. Last year, the Beijing-East gross profit was 6.844 billion yuan, an increase of 96.5% per cent, gross profit margin of 9.9%, and 2012 was 8.4%.

Beijing East 2013 is still in a loss, the year net loss of 50 million yuan, compared to the 1.729 billion yuan last year, the scale of losses narrowed 97.11%. As of the end of last year, the cumulative loss of Beijing East was 4.264 billion yuan.

The shareholding structure of Jingdong

Founder Liu Individuals currently hold 18.8% of the company's shares, and through the holding of two companies Max Smart 2¥q (shares 18.8%) and Fortune Dr. Holdings 2¥q (Shares 4.3% Directly holding B shares (1 stock B shares have 20 votes), is the company's largest shareholder. After the IPO, Liu's voting power will be as high as 83.7%.

Other institutional shareholders also include Tencent's Yellow River investment stake of 14.3%, high jianling Capital holding 13.0%,DST shareholding 9.2%, today's capital Holdings 7.8%,strong Desire 2¥q shareholding 2.2%, Sequoia Capital Holding 1.6%.

Five, the integration of Beijing-east and Tencent Electric business

Tencent March 10 this year announced a stake in the east, Jing Dong is currently owned by Tencent's Consumer-to-consumer platform Pat Net, the platform QQ network purchase, holding the platform Xun 9.9% of the shares, and has the right to 800 million yuan before March 10, 2017 to buy Xun.

According to the prospectus, as of April 1 this year, Tencent Electric Company (recently revoked) 5,000 employees have joined Jingdong, including 2000 distribution personnel.

The prospectus also revealed that Beijing-east has reached an agreement with Tencent's Yellow River investment, and that the IPO will be synchronized with private placements, and that the Yellow River investment will continue to buy 5% of total equity after the Beijing-East IPO. According to this, Tencent will become the second largest shareholder of Liu outside of the capital.

BEIJING-East and Tencent to achieve strategic cooperation, is mainly optimistic about Tencent in the mobile end of the diversion advantages and channel advantages, the hope is to join forces with mobile power. Ali has submitted a prospectus to the US listing, and announced the mobile end of good results (in the fourth quarter of last year, from the mobile end of the retail turnover of Ali retail transactions accounted for 19.7%) at the time, Jingdong relies on Tencent investment, to obtain micro-letter and hand Q on the "first-level" position, overweight mobile end for the listing endorsement.

Vi. the next business plan for Jingdong

(1) Provide O2O solutions for consumers and offline retailers. This March, Beijing East announced will and northward more than 15 cities and more than tens of thousands of convenience stores to cooperate, users can be positioned in the Beijing-East platform convenience store to find the nearest store shopping, Jingdong will use the logistics system and convenience stores own distribution capacity to complete distribution, and plan to the retail industry ERP system and the Beijing-east platform docking, support store inventory of the entire channel sales of the transaction link, the settlement link, logistics services, after-sale customer Service link visualization, support Jingdong electronic Membership card and mobile payment function.

(2) Internet finance. In addition to providing supply chain financial services and consumer-type financial services, Jingdong is building its own payment platform.

(3) Expand to Pat NET as the core Consumer-to-consumer business.

(4) Accelerating international expansion. Jingdong may build websites, warehouses and payment systems overseas.