Orchid Pavilion Set to announce net income of 89.8 million dollars in the second quarter

Absrtact: August 20, the global online retailer Orchid Pavilion today released its unaudited second-quarter results for June 30, 2014, with net income of $89.8 million trillion, up 24.3% from a year earlier. Gross profit of 35.5 million U.S. dollars, compared to the same period last year 33.2 million dollar growth

August 20, the global online retailer Orchid Pavilion today released its unaudited second-quarter results for June 30, 2014, with net income of $89.8 million trillion, up 24.3% from a year earlier. Gross profit of 35.5 million U.S. dollars, compared with the same period last year 33.2 million U.S. dollar growth of 6.8%.

Second quarter earnings highlights:

1. Net income of 89.8 million dollars, up 24.3% from last year;

2. The total number of orders increased by 52.4%, more than 2.2 million;

3. The proportion of mobile orders increased to the total number of orders 28.2%, which was 16.8% in the second quarter of 2013;

4. The total net income from duplicate client purchases increased to 40.4% per cent, and the figure for the same period in 2013 was 32.5%;

5. Sales and marketing expenditures fell to 27.7% from 31.8% per cent of total net income, and sales and marketing expenditures for each order were reduced from 13.7 to $11.4 in the second quarter of 2013;

6. Under the current stock repurchase plan, the pavilion has bought up 2.6 million US dollar depository receipts (ADS, which allow foreign shares to be traded on the US stock exchange).

"We are delighted to announce the financial report for the second quarter of 2014, which reflects the Guo of corporate income growth," said Alan Guo, chief executive of Orchid Pavilion. We are currently benefiting from the strategic plans that have been implemented over the past few quarters. Net income in the second quarter amounted to $89.8 million trillion, which exceeded our previous expectations. The company's strong performance is mainly driven by the fast-growing apparel industry, the strong recovery in wedding dress sales and the increase in mobile channels and repeat customers. As a global online retailer, we will continue our efforts to increase customer base, increase customer satisfaction, and improve platform capabilities, including global practice infrastructure and logistics optimization. ”

Second quarter financial results:

Net income grew 24.3% per cent year-on-year, to $89.8 million trillion. The main driving force of net income growth includes the strong growth of apparel sales and the increased contribution of corporate mobile business and repeat customer orders. The total order growth rose 52.4% to 2.2 million. The total number of buyers in the second quarter increased by 44.2% to 1.7 million. Duplicate client purchases accounted for 40.4% of total net income, and accounted for 32.5% in the second quarter of 2013. The proportion of mobile orders to the total number of orders increased to 28.2%, 2013 the same period of 16.8%.

Clothing income rose 43.5%, to 35.4 million U.S. dollars. This reflects the company's initial success in hastening the sale of clothing. Clothing growth owes much to the strong growth of garments, and the custom wedding business also recovered strongly in the second quarter. In the proportion of total net income, clothing income accounted for 39.5%, 2013 the same period of 34.2%. Electronic products and other commodity income also increased by 14.3%, to 54.4 million U.S. dollars.

Geographically, revenues from Europe rose by 25.7% to $55.4 million trillion, accounting for 61.7% of total net income. Revenue from North America rose 40% to $20 million trillion, accounting for 22.3% of total net income. Income rose by 3.7% in other countries, at $14.4 million trillion, accounting for 16% of total net income.

Gross profit of 35.5 million U.S. dollars, compared with the same period last year 33.2 million U.S. dollar growth of 6.8%. Gross margin was 39.5%, down 6.5% from 46% in the second quarter of 2013. These changes are mainly caused by companies changing product results and pricing strategies to continue to expand market share and increase user base.

Expenditure data:

The total operating expenses were $41.8 million, compared with $32.2 million in 2013.

Logistics and distribution cost of 5.5 million U.S. dollars, the second quarter of 2013 to 3.7 million U.S. dollars. This mainly reflects the increase in sales volume and performance orders. In the total net income ratio, the logistics distribution cost increased from 5.2% to 6.1% in the same period in 2013, and the logistics cost per order was reduced from $2.6 to $2.5 in the second quarter of 2013.

Sales and marketing expenses were $24.8 million, compared to $19.6 million in 2013. This reflects the company's efforts to increase customer base and market share. In the total net income ratio, sales and marketing expenditures fell from 31.8% in the first quarter to 27.7% per cent, with a stability of 27.1% in the second quarter of 2013. This continuous improvement in spending proves that the company is fulfilling its commitment to optimize online marketing and diversify its access to procurement channels. Sales and marketing expenses for each order fell to $11.4 from $13.7 in the same period in 2013.

General and administrative expenses were $11.5 million, and the second quarter of 2013 was $8.8 million. This reflects the growth of the company's business, while the company is also playing a good foundation for future growth. The cost includes 3.7 million dollars in technology investment, at $2.4 million in the same period in 2013. In the total net income ratio, general and administrative expenditure accounted for 12.9% per cent, down from 14% in the first quarter, which was roughly unchanged from 12.2% in the same period in 2013.

Operating loss of 6.3 million U.S. dollars, and the second quarter of 2013 operating income of 1.1 million U.S. dollars. Compared with the first quarter of 2014, the operating losses in the second quarter were reduced by 2.3 million dollars. The adjusted operating loss (adjusted loss from operations) was USD 6.2 million in accordance with the non-general Accepted Accounting Principles (NON-GAAP), while the adjusted operating income for the second quarter of 2013 (adjusted income from Operations) is 3.9 million dollars.

The net loss attributable to ordinary shareholders in the second quarter of 2014 was $5.7 million, compared with a figure of $40,000 in the same period in 2013. After the adjustment of the attribution of ordinary shareholders net loss of 5.6 million U.S. dollars, adjusted for the same period in 2013 the net income of the average shareholder is 2.8 million U.S. dollars.

In the second quarter of 2014, the net loss of US depository Receipts (ADS) was $0.11, compared with $0.00 in 2013. US depository receipts per share represent 2 common shares. The company operates a negative 500,000 dollars in cash flow, as operating losses can be supplemented by cash generated by operating capital.

As of June 30, the company had cash and cash equivalents, fixed-term deposits and limited funds of USD 95.8 million, approximately equivalent to USD 1.93 per share of US depository receipts. On March 31, 2014, the company had a total of 99.7 million dollars.

Stock repurchase and the outlook of the third quarter

December 16, 2013, the company announced a 20 million dollar share repurchase plan. As of June 30, 2014, the company has bought back 2.6 million US dollar depository receipts.

In the third quarter of 2014, the company expected net revenue to be between 92 million and 94 million dollars, up from 35% to 38% per cent year-on-year. These forecasts reflect the company's current and initial perceptions of the market and its operations. Sail）