Once, a man said, either give me all my love, or don't come to me.

So the woman gave him all her love.

However, as the saying goes, men can be relied on and sows will climb trees.

In the end, the man found that the little sister next door was better.

Maybe there is no love for no reason.

Last week, Hillhouse Capital took a position in the second quarter.

Hillhouse Capital built new positions in the second quarter: Baidu, Inc., Noah, Sohu.com Ltd, Facebook Inc and so on, of which Baidu, Inc. bought the most, about US $100 million. Increased holdings of YY,SNAP, etc., um, but also increased holdings of Berkshire Hathaway.

Reduced holdings of iQIYI, Inc., TAL Education Group, 58.com, NetEase, Inc, etc., and then sold out of Sina and Bilibili Inc..

Of course, the brightest blind is aboutBABA and JD.comA big operation.

1

Zhang Lei's "change of mind"

Hillhouse Capital's position in the United States has a market capitalization of about US $6 billion. In the first quarter of this year, JD's position was about US $1.4 billion, which was regarded as an absolute heavy position, but it plummeted by US $600 million in one quarter, while BABA increased its position by about US $900 million. together with the previous position of BABA, the total position was about US $1.2 billion. BABA has become the largest position of Hillhouse Capital.

There are many vivid stories about JD.com and Hillhouse Capital online.

In 2010, Liu Qiangdong's financing needs were only $75 million, but Zhang Lei told Liu Qiangdong: this businessEither let me invest 300 million dollars, or I won't invest a penny.Because this business itself is a business that needs to burn money, it is impossible to see the core competitiveness in logistics and supply chain systems without burning enough money.

This was one of the largest single investment cases of early domestic Internet companies at that time, and Hillhouse was once ridiculed as "a lot of money and people are stupid." But Zhang Lei knows very well what kind of business model is most suitable for JD.com, because JD.com in his eyes is just like Amazon.Com Inc at that time, and Bezos's regret is that when Amazon.Com Inc was founded, the United States already had logistics giants like UPS, so he lost the opportunity to do supply chain integration; while in China, JD.com does not have such a competitor, so he faces a better historical opportunity. This is probably why Hillhouse is willing to contribute money to help JD.com build his own logistics platform.

Today, looking back, we can see that this round of large-scale investment by Hillhouse has indeed enabled JD.com to quickly establish an unshakable lead in the field of B2C e-commerce in a very short period of time. To some extent, it even deterred new capital from investing in competitive companies in this field, strengthening JD.com 's absolute leadership position.

Zhang Lei took Liu Qiangdong to the United States in the second week after investing in Hillhouse. Liu Qiangdong stayed at Walmart Inc headquarters for four or five days to fully understand Walmart Inc's logistics network and warehousing system, and quickly launched supply chain reengineering and logistics channel optimization in JD.com. Zhang Lei also arranged for JD.com 's management to exchange cross-border management experiences with the senior management team of Grand Runfa, another excellent offline retail company invested by Hillhouse, to help the Jingdong team learn the management knowledge of offline retail.

In operation, Hillhouse also helps JD.com introduce a lot of experienced senior management talents in Internet operation and marketing. And the late introduction of some investors also have Hillhouse to play a role in it. As Zhang Lei mentioned in a discussion, Hillhouse is very concerned about "neighbor risk" and hopes that the investors introduced to JD.com in the later period will, like Hillhouse, have no short-term exit pressure and can really look to the future and support the company's long-term development.

In 2014, under a lot of resistance, Zhang Lei made Tencent give up his idea of starting an e-commerce, brokered Tencent to buy a stake in JD.com, making it JD.com 's largest shareholder.

So, in the market,When you mention Zhang Lei, you think of JD.com, and when you mention JD.com, you think of Zhang Lei.

Sure enough, men's words are unreliable. Zhang Lei, who once looked to the future, hardly stopped reducing his holdings after JD.com went public in 2014, and finally in this quarter, Zhang Lei is no longer Zhang Lei's largest company by market capitalization. Yes, the man who once loved JD.com most abandoned her.

On the contrary, it is BABA, the sworn enemy of JD.com, who has become Zhang Lei's largest position, and the massive increase in BABA's holdings almost occurred in this quarter, which makes people wonder what it is. Let the man who once loved JD.com thoroughly throw himself into the embrace of BABA.

2

The rise and fall of the Tide by JD.com

In the early years, when BABA only had Taobao, JD.com identified BABA's two weaknesses, one is fake, the other is logistics, these two cards are also JD.com 's main cards. Taobao C2C model, the control of individual merchants is weak, merchants are responsible for everything, Taobao can not completely regulate the behavior of sellers, sellers from the perspective of short-term interests, but also have sufficient motivation to sell counterfeit goods. In terms of logistics, it is the behavior of businessmen and logistics companies, which has nothing to do with Taobao. What Taobao does is just a charterer who rents the flow, the kind that doesn't even cover the water grid.

And JD.com through self-management, control products from procurement to sales of all links, almost put an end to the existence of fake goods. Tactically, it drew a lot of traffic through the traditional post-3C and later JD.com supermarket. And through the vigorous development of logistics, from warehousing to distribution, the logistics experience has risen to a new height. If an order is sent in the evening and delivered in the morning, I will ask you if you are satisfied.

These BABA are actually convinced. Tmall was established in 2012 to directly introduce brands to make them responsible for their reputation and curb their willingness to manufacture and sell fake products from the source. Brands do not want to smash their own signboards. After years of development, Tmall's share of GMV continues to rise. Although it accounts for less than half of it, it has become the absolute core of BABA in the future.

In 2013, BABA established Cainiao Logistics, through equity participation, through self-construction, co-construction, cooperation, transformation and other models, to form an open network of social storage facilities, which allows all logistics providers, whether they are backbone networks, warehousing or landing distribution, to participate. BABA is the biggest customer and builds its own platform and rules at the same time. As the saying goes, those who follow us will prosper, and those who go against me will die, so the major logistics companies have to be obedient and obedient.

The two cards of the rise of JD.com were pressed by BABA one after another. In terms of mode, self-management can see the boundary, and the expansion of GMV requires corresponding costs from operation to management. in essence, it is still a second-tier peddler who sells to make a difference. On the other hand, BABA is still a charterer, and unlike in the past, one is to introduce high-quality tenants, and the other is to package the water grid. It's more like Lianjia's freedom. All you have to do is pay to check in. In terms of business model, BABA and JD.com have won or lost.

Blessings are unparalleled, and it never rains but it pours. There are interceptions in front and pursuers later.Behind JD.com, there is another strong competitor, that is, Pinduoduo, who is also from Tencent.If BABA walked from the countryside to the city from Taobao to Tmall, then Pinduoduo responded to the country's call to go to the poorest parts of the motherland.

2018Q2 Pinduoduo active buyers 344 million, 2018Q2 JD.com active buyers 290 million, from the number of users, chasing soldiers in the blink of an eye. In fact, after JD.com married Tencent, there was not much spark of love between the two sides. Tencent did not rely on JD.com to contain BABA's footsteps, and JD.com did not take advantage of Tencent's flow to climb another tall building. The marriage introduced does not guarantee true love. Looking back to reflect, for Tencent, can not control the investment, how to talk about love.

On the evening of August 16, JD.com released his financial results for the second quarter of fiscal year 2018. In this financial quarter, JD.com 's revenue, adjusted earnings per share and other data are lower than market expectations, net profit also showed a sharp decline compared with the same period last year. Under Non-GAAP, JD.com 's net income in the second quarter was 122.3 billion yuan ($18.5 billion), up 31.2% from a year earlier and the slowest year-on-year growth since going public.

From Q1 in 2017 to Q2 in 2018, JD.com 's year-on-year GMV growth rates were 41.8%, 46.5%, 32.3%, 33.1%, 30.4% and 30.5%, respectively. Excluding the influence of "11.11" and "6.18" in the second and fourth quarters, JD.com 's GMV growth rate has been declining all the way. In terms of market share, JD.com 's Q2 market share was 26.2%, down 6.7% from 32.9% in the same period last year.

The single copy of the result handed in by JD.com is not as good as one.

3

BABA's "attack by reducing Dimensions"

On August 17th, just a few days after China Tower Corporation went public.China Tower Corporation and BABA signed a strategic cooperation agreement.The two sides will carry out in-depth cooperation in cloud computing, edge computing, big data and other cutting-edge areas. China Tower Corporation will also provide support services for BABA's construction of the Internet of things across the country.

It is worth noting that among the cornerstone investors of the tower, only BABA, the big three of BAT, has invested in the tower, and the largest cornerstone investor of the tower is Hillhouse Capital.

Specifically, what kind of intersection will occur between the two sides in this cooperation?

1. BABA will rely on China Tower Corporation's nearly 1.9 million sites and supporting facilities all over the country to enhance edge computing capacity, create a cloud computing service system with collaborative integration at the cloud edge, and connect everything to the cloud. Rapid implementation of solutions and applications in smart cities, intelligent transportation, intelligent agriculture, environmental brain and other fields.

2. Relying on China Tower Corporation's unique resources and capabilities, BABA will speed up the exploration and layout of 5G, self-driving, car networking, new energy, intelligent devices and other fields.

3. Based on their own resources and needs, the two sides will also strengthen cooperation in enterprise procurement, asset management and disposal, intelligent office, advertising marketing, culture and entertainment, map services and big data analysis.

In my opinion, these are all virtual, or rather, these are just things at the application level. What BABA wants is the data entrance of the 5G era. In the 5G era, all data, from mobile phone terminals to a variety of Internet of things product terminals, have to go through the hands of the tower. China Tower Corporation is the only door where information converges between users and service providers in the 5G era, and there is no exception. BABA, who has these data, can look at the entire 5G era from the perspective of God, where the tide rises and falls, where the day and night alternate, no one can escape the eyes of BABA, not even Tencent. Once the BAT Big three, 4G era, Baidu, Inc. left behind, 5G era, Tencent may also be left behind, not to mention JD.com.

4

End

BABA is the leader of the industry after all, and there is no doubt that the development of the second should be differentiated.Either learn self-support + logistics rising JD.com, or learn the market sinking Pinduoduo, or learn to subdivide the market Beibei net, the rest, life is not very easy, Mogu Inc is not all together with JD.com?

But when you encounter a bend and want to overtake, you will be mercilessly suppressed by the boss. It's not that JD.com didn't want to expand the border, but whether it was the newly proposed unbounded retail or JD.com Finance, including AI, big data, Internet of things intelligence, and so on, they did not seem to have jumped out of BABA's Wuzhishan and were able to find targets, and none of them had the surprise blow of layout logistics in that year. Now it seems that JD.com 's greatest contribution is to help BABA eliminate competitors, Yi Xun and No.1 store, but the share of Jingdong City has declined instead of rising. In the end, it was BABA who took advantage.

All JD.com can do now is to try not to be left behind.

What BABA is doing is already laying out the next era.

Zhang Lei of Hillhouse Capital is of course a wise man, making money for his wife (LP) is the true love!