YU Ebao’s Financial Nature And Profit Analysis

With the rapid development of information technology, e-commerce,internet payment,P2P network loan, network microfinance,public financial model and other online financial products or business service platform,internet sales platform of raised funds, become the focus of attention of business community and academia.Among them, as a typical third-party payment company, Alibaba occupy a largest market share for overall deal size. Thus,how Internet companies create such outstanding performance? Compared with the traditional businesses, where their core capital lie? Obviously, it’s necessary to study and interpret these issues.In this paper, case study analysis method is used, taking Alibaba Group’s Yuebao for an example, making a research on the financial essence, material carriers, core capital and configuration issues of China’s Internet companies,thus can achieve better research purposes. The main problem of this study is the financial nature of Yuebao and its core capital allocation.In the end, discover problems, sum up the experience,propose the conclusion and suggestion.This article includes five parts.First part, the introduction, introduces the research background, problem and its purpose, and summarize the main content of this paper. Second part, literature review and theoretical basis,focusing on the theory of financial intermediation or principles of financial instruments and financial support(or relationship among information, resources and uncertainty).In this chapter, first summarize the current study situation of yuebao and make comments. Then put forward the financial intermediary as theory basis of this paper, briefly describes the concept,classification and function of financial system and financial intermediation Third part, case presentation,problems and perspectives.In this paper, we take yuebao as a typical case of internet business development, study its financial activities, focus on it’s produce, business processes and characteristics.Then put forward yuebao’s problem, profitability and financial nature. Fourth part, the case analysis. First study realistic basis and market conditions.Then analyze the theoretical basis of yuebao from three respects:financial tool principle, cost-benefit principle, heterogeneous elements of capital allocation.Finally, make a financial analysis on it’s yield.Fifth part,conclusions and recommendations.The innovation of this article is to find yuebao’s truth in network economy. Yuebao is a financial intermediary of operator in internet era. In a broader sense, yuebao is one kind of financial support and financial platform.Yuebao doesn’t have the financial function such as returning and issuing currency, regulating money in circulation.Because the main body of yuebao is Business and individual rather than country.