Dangdang net deficit in the third quarter of 100 million yuan Year-on-year expansion

Sina Science and technology news Beijing time November 15 night, Dangdang today released the third quarter of 2012 as at September 30 unaudited earnings. Net revenue of 1.2876 billion yuan, an increase of 41.7%. Net loss of 100.1 million yuan, higher than the same period last year, 73.4 million yuan. Third quarter earnings points in the third quarter, Dangdang total net revenue of 1.2876 billion yuan (about 204.9 million U.S. dollars), the year-on-year growth of 41.7%. Media merchandise revenues of 849.9 million yuan (about 135.2 million U.S. dollars), an increase of 32.9%. Daily sales revenue of 397.4 million yuan (about 63.2 million U.S. dollars), an increase of 55.9%. As the proportion of the online market in the Dangdang business increases, Dangdang will report the amount of merchandise sold in the online market (GMV) from the third quarter. In the first quarter of 2012, the second quarter and the third quarter, Dangdang online market GMV 199.6 million, 283.7 million and 341.5 million yuan respectively, year-on-year growth rate of 129%, 200% and 159% respectively. Starting in the third quarter, Dangdang will report the number of users and order data for the entire platform, not just proprietary business data. Dangdang's entire platform includes proprietary business and online market operations. In the first quarter, the second quarter and the third quarter of 2012, the number of active users in the platform was 6.1 million, 5.9 million and 7 million, respectively, 1.9 million, 1.8 million and 2.4 million, and orders were 12.3 million, 12.3 million and 13.9 million respectively. The third quarter, Dangdang the entire platform about 7 million active users, an increase of 26.4%. The total order volume of the entire platform is about 13.9 million, an increase of 29.1%. Dangdang executive Chairman Yu said: "We are pleased to report stable third-quarter results." Revenue rose 41.7% Year-on-year, gross profit margin reached 15.2%. With a year-on-year growth rate of 33% per cent, Dangdang continues to strengthen its leading position in the books and media market. Other revenue, mainly from third-party merchants revenue, year-on-year growth of 183.4%, the chain growth of 20.5%. This reflects the strong growth momentum of our online market program. We planned the promotional activities on the basis of timing and theme. At the same time, we invest in order delivery and technology to improve the overall shopping experience. "Dangdang CEO Guoqing said:" In the third quarter, we invested in the delivery of orders, in 158 cities to provide an alternate day service, in 11 cities to provide night service, and in 21 cities to provide delivery services. This is part of our continuous improvement in customer service. We rented another two warehouses in Tianjin and put them into operation in August. This allows us to increase warehousing capacity from the end of the second quarter of 2012 to 350,000 square meters to 370,000 square meters. Third quarter results in the third quarter, Dangdang total net revenue of 1.2876 billion yuan (about 204.9 million U.S. dollars), year-on-year increaseLong 41.7%. Media merchandise revenues of 849.9 million yuan (about 135.2 million U.S. dollars), an increase of 32.9%. Daily sales revenue of 397.4 million yuan (about 63.2 million U.S. dollars), an increase of 55.9%. Other revenues, including revenue from third-party businesses, were 40.3 million yuan (about 6.4 million U.S. dollars), up 183.4% per cent year-on-year. The third quarter, Dangdang the entire platform about 7 million active users, an increase of 26.4%. The total order volume of the entire platform is about 13.9 million, an increase of 29.1%. The revenue cost is 1.0914 billion yuan (about 173.7 million U.S. dollars), accounting for 84.8% of total revenue, down from 86.2% in the same period last year. The decline in revenue costs as a percentage of total cost is mainly due to the fact that Dangdang is implementing a strategy to transfer some of the commodity categories to the online market and the scale effect of Dangdang's partial proprietary business. Daily sales of 397.4 million yuan (about 63.2 million U.S. dollars), accounting for 30.9% of total revenue, higher than the same period last year 28.1%. Gross margin of 15.2%, higher than the same period last year 13.8%. Gross margin year-on-year growth is mainly due to the expansion of the online market size, and Dangdang part of the scale effect of proprietary business. The cost of the order delivery, including warehousing and logistics costs, is 185.7 million yuan (about 29.6 million U.S. dollars), accounting for 14.4% of total revenue, higher than the same period last year 14.2%. This growth is mainly due to investment in improving order delivery and user experience. Marketing costs 45.8 million yuan (about 7.3 million U.S. dollars), accounting for 3.6% of total revenue, lower than the same period last year 4.4%. This decline is mainly due to the increased effectiveness of marketing activities. Technology and content cost 40.8 million yuan (about 6.5 million U.S. dollars), accounting for 3.2% of total revenue, higher than the same period last year 2.3%. This growth is mainly due to the increase in the number of employees and investment in improving the Dangdang user shopping experience and supply chain management. The general administrative cost of 33.1 million yuan (about 5.3 million U.S. dollars), accounting for 2.6% of total revenue, higher than the same period last year 2.3%. This increase is mainly attributable to the increase in the number of staff and the charging of pod services. The cost of the stock is 2.8 million yuan (about 400,000 U.S. dollars), an increase of 21%. Dangdang's third-quarter operating loss was 104.6 million yuan (about 16.6 million U.S. dollars), compared with 81.9 million yuan in the same period last year. This is mainly due to the increase in revenue costs, as well as the growth in order delivery, technology and content costs. Operating losses, excluding share-price costs (non-US GAAP), were 101.8 million yuan (about 16.2 million U.S. dollars), up from 79.6 million trillion yuan in the same period last year. Operating profit margin of 8.1%, better than the same period last year-9%. Net loss of 100.1 million yuan (about 15.9 million U.S. dollars), higher than the same period last year73.4 million Yuan. This is mainly due to the increase in revenue costs, as well as the increase in order delivery and technical costs. The net profit margin is-7.8%, better than the same period last year-8.1%. The net loss, excluding the cost of shares (non-US GAAP), is 97.3 million yuan (about 15.5 million U.S. dollars), up from 71.1 million trillion yuan in the same period last year. As of September 30, 2012, Dangdang had a cash and cash equivalent of 1.4302 billion RMB (USD 227.6 million), a term deposit of more than 3 months, and an investment held to maturity, which was higher than the 1.3918 billion yuan on December 31, 2011. Dangdang's third-quarter capital expenditure was 17.6 million yuan (about 2.8 million U.S. dollars). Adjusted after the tax depreciation amortization (EBITDA) loss of 90.6 million yuan (about 14.4 million U.S. dollars), higher than the same period last year 72.4 million yuan. This is mainly due to the increase in revenue costs, as well as the increase in order delivery and technical costs. The quarterly results forecast Dangdang expected the fourth quarter total net revenue will be about 1.61 billion yuan (about 265 million U.S. dollars). This expectation is the current preliminary view of Dangdang, it is possible to adjust. (Zhang Fan)