Zhang Liang: The store continues to be a huge loss

"What is the current profitability of a store?" asked the secretary. ? In a recent seminar on the frontier issues of financial director of listed companies organized by the Capital Markets College (phase II), Chief financial officer Zhang Liang faced such a sharp question after his speech.

"Continue to be a huge loss. Zhang Liang answered truthfully.

"Continue to huge losses", a short four words seems to be able to represent the current Chinese Internet electricity business general situation. In the electricity quotient up to 30% gross profit margin behind, the profession still loses the logic in the end is what? What's the status of the electric business industry in the capital market? And what are the policy recommendations for landing in the domestic capital market? Zhang Liang, chief financial officer of the shop, explained the above topic one by one.

To burn money is to enlarge the electricity quotient

Way

According to the data, the GMV of China's online shopping is growing at a compound annual growth rate of 29%, which is expected to reach 3.6 trillion yuan in 2016, accounting for about 10.8% of total retail sales. Where GMV represents the site transaction amount. A popular explanation is to take the amount that is taken, regardless of whether the user eventually actually buys.

According to Zhang Liang's analysis, in such a market with great prospects, the traditional revenue of the type of trader is made up of income from goods sold, freight, new arrivals, warehousing income and advertising revenue. And the main cost of the Web site, the biggest piece is the purchase of goods, buy goods, and then to sell the whole process costs. The other part is the inclusion of the line, the bottom two parts. Second, warehousing operations and logistics costs and human costs are also part of the need to consider.

In addition to the changes in profitability, Zhang Liang believes that GMV is a better indicator for reference. Although this index can not be used in financial statements to show the financial data, but has a certain reference value. At the same time, when ordinary electric dealers have losses, setting the threshold of gross margin is one aspect of rule setting.

In addition, he argues, size, category and growth can also be included in the entry threshold. If the listing rules can be adjusted in accordance with these aspects, the electricity companies will be encouraged to list on the mainland plate.