Macaulay's net loss in the second quarter was $6.2 million trillion year-on-year

in the same period last year.

Beijing time August 14 Morning News, Macaulay (Nasdaq:mcox) released today, as of June 30, the second quarter of fiscal year 2013, unaudited results. According to the results, Macaulay's net revenue for the second quarter was $21.8 million, down 44.1% from the 39 million-dollar period last year, and a net loss of $6.2 million, which was larger than the $4.9 million trillion in the same period last year.

Main achievements:

-Macaulay's net revenue for the second quarter was $21.8 million trillion, down 44.1% from 39 million a year earlier;

-Macaulay's gross profit for the second quarter was $8.1 million trillion, down 39.6% from $13.4 million a year earlier;

-Macaulay's gross profit margin was 37.2% in the second quarter, up from 34.4% in the same period last year;

-Macaulay's net loss in the second quarter was $6.2 million trillion, an increase from $4.9 million a year earlier.

Financial Analysis:

Total net revenue:

Macaulay's total net revenue for the second quarter was $21.8 million trillion, down 44.1% from $39 million a year earlier, mainly due to the decline in net revenue from the company's E-commerce channels and the drop in net revenue from its call centers and physical stores.

Net revenue from e-commerce channel-Macaulay's net revenue from E-commerce channels in the second quarter was $6.7 million, down 65.8% from $19.6 million a year earlier, mainly because of the decline in M18.com's website sales. In the last quarter, the M18.com website was managed by Giosis and reopened as a brand-neutral open platform. However, the company's E-commerce channel net revenue decline by the company in the days of the cat, Jingdong Mall and other independent E-commerce platform sales growth in part offset.

Net revenue from call center--the net revenue from the call center in the second quarter was $10.5 million trillion, down 7.8% from 11.4 million US dollars in the same period last year. The decline in the net revenue from the Macquarie Call Center was due mainly to a decline in the company's catalog circulation since January this year, resulting in a decrease in orders from the company's call center.

Net revenue from direct-sales and franchise shops--the net revenue from the second quarter of the year was 3.1 million U.S. dollars, down 36.8% from 4.9 million US dollars in the same period. The decline in net revenue of the MAI Lim Direct shop was mainly attributable to the reduction in the average number of direct shops in the second quarter from 109 in the same period last year to 60, but partly offset by the increase in average shop sales.

Macaulay's net revenue from franchise stores in the second quarter was $1.5 million trillion, down 51.7% from $3.2 million a year earlier. The decline in net revenue from the Macquarie franchise was mainly attributable to a decrease in average shop sales and a reduction in the average number of franchise stores in the second quarter from 267 to 256 in the same period last year.

Cost of Goods Sold:

The cost of the goods sold in the second quarter was $13.7 million, down 46.5% from $25.6 million a year earlier. The cost of goods sold by Macaulay is in line with the decline in revenue.

Gross profit and gross margin:

Macaulay's gross profit for the second quarter was $8.1 million trillion, down 39.6% from $13.4 million a year earlier. Macaulay's gross profit margin for the second quarter was 37.2%, up from 34.4% in the same period last year. The increase in the gross profit margin is mainly due to the increase of the call center's overall business proportion, while the call center gross profit is higher than other departments. However, as a result of Mecoxlane's attempt to make new brands and products in the second quarter, the company's gross profit margin for the second quarter was partially offset by an increase of about $900,000 in inventory.

Operating expenses:

Macaulay's total operating expenses for the second quarter were $13.8 million trillion, down 26.7% from 18.8 million dollars a year earlier. The decline was mainly attributable to the decline in sales, general services and management spending in the second quarter.

Macquarie's second-quarter sales, general services and management expenditures were $13 million trillion, down 30.1% from 18.6 million dollars a year earlier. Macquarie Sales, General services and management of the decline in expenditure, mainly due to the decline in related personnel and labor costs, the company's centralized logistics network strategy to reduce the implementation of some of the warehouse leasing costs, and m18.com Web site to be responsible for the management of Giosis, some advertising, it expenditure reduction.

Operating loss:

Macaulay's operating loss in the second quarter was $5.7 million trillion, an increase from $5.4 million a year earlier.

Net loss and loss per share:

Macaulay's net loss in the second quarter was $6.2 million trillion, an increase from $4.9 million a year earlier. The net loss, which was not calculated in the second quarter by the United States General accounting standards, was $5.2 million trillion, an increase of $4.3 million over a year earlier. The basic and diluted losses of the U.S. Depository Receipts (ADS), which were attributed to the company's shareholders in the second quarter, were $0.53 trillion. Macaulay per share ads represent 35 common shares.

Cash and short-term investments:

As of June 30, 2013, the total cash and cash equivalents held by Macaulay amounted to USD 7.2 million, which was below $13.3 million as at December 31, 2012. As at June 30, 2013, the total amount of restricted cash held by Macaulay was $17.9 million, while the total amount of restricted cash held by December 31, 2012 was zero. As of June 30, 2013, Macaulay held a total of 10.5 million U.S. dollars in short-term investment, lower than the 20.7 million U.S. dollars as at December 31, 2012, all these short-term investments in the form of regular bank deposits.

Short-term borrowings:

As of June 30, 2013, Macaulay has received a total of 15.4 million U.S. dollars in short-term loans, and as of December 31, 2013, the amount of short-term loans received is zero. All these short-term borrowings are secured with a restricted cash of $17.9 million.

Performance expectations:

Macaulay did not provide expected performance data.

Conference：

After the release of the results, the Macquarie Management team will be in the eastern Time August 13 evening 9 o'clock (Beijing time August 13 9 o'clock in the morning), the earnings call, interpretation of earnings and answer questions from investors and analysts.

Listen to the conference number as follows:

United States: +1-855-500-8701

International: +65-6723-9385

Hong Kong, China: +852-3051-2745

Password: 29368366

The HTTP://IR.MECOXLANE.COM/EVENTS.CFM website will be broadcast on the conference call on the eastern time August 13, 2013 7:30 P.M. (Beijing/Shanghai/Hong Kong Time August 14, 2013 7:30 A.M.). In addition, investors can visit the Macquarie Investor Relations channel http://ir.mecoxlane.com to listen to the earnings conference call recordings. (Chen)