Orchid Pavilion set to announce major results in the second quarter

Orchid Pavilion (NYSE:LITB) today released its second-quarter financial results for the 2013 fiscal year. According to the report, the net revenue of the pavilion was 72.2 million U.S. dollars in the second quarter, a 52.6% increase over the same period last year, and a net profit of $600,000, with a net loss of 1.4 million dollars over the same period last year.

Main achievements:

-Blue Pavilion's net revenue in the second quarter was $72.2 million trillion, up 52.6% from 47.3 million trillion dollars in the same period last year, mainly because the total number of clients in the quarter grew 140%, from 500,000 to 1.2 million in the same period last year;

-The Blue Pavilion set the second quarter gross profit margin is 46%, compared to the same period last year 41.7% growth 430 basis points;

-Not in accordance with the United States General accounting standards (excluding equity incentive spending), the Orchid Pavilion set in the second quarter adjusted operating profit of 3.9 million U.S. dollars, the same period last year, 10,000 U.S. dollars. Not in accordance with the United States General accounting standards, LAN Pavilion set the second quarter adjusted operating profit margin of 5.4%, the same period last year 0%;

-The net profit of the pavilion was $600,000 in the second quarter, with a net loss of $1.4 million in the same period last year. The second quarter net profit margin of Orchid Pavilion is 0.9%, the same period last year is 2.9%;

-Not in accordance with the United States General accounting standards (excluding equity incentive spending), the Orchid Pavilion set in the second quarter adjusted net profit of 3.5 million U.S. dollars, the same period last year adjusted net loss of 600,000 U.S. dollars. Not in accordance with the United States General accounting standards, LAN Pavilion set the second quarter adjusted net profit margin of 4.8%, the same period last year-1.3%;

-In the second quarter, the Orchid Pavilion revenue from repeated purchases of customers was $23.4 million, up 123.7% from a year earlier;

-The net cash flow from operating activities in the second quarter of the pavilion is 4.5 million dollars.

"We were excited about the financial report for the second quarter of 2013," he said. The report reflects the company's strong growth momentum and profitability. "Orchid Pavilion set potential chairman and Chief executive officer Guo said. "We have expanded our business in all regions of the world, mainly from Europe and South America, especially in Russia and Brazil," he said. Continued optimization of repeat purchases and cost controls has also led to a year-on-year increase in net earnings, which is very gratifying. ”

Guo went on to say: "We are happy that we have completed a successful IPO and become a NYSE listed company, which is a major milestone for our company." Looking to the future, we plan to leverage our enhanced resources to further enhance our core competencies in supply chain management and data-driven sales and marketing. We are confident that we will be able to further expand our online retail inspection and functional status and deliver better customer value proposition and shopping experience. Through our growing business scale, by focusing on improving marketing practices and promoting new customers and repeat purchases of customers, expanding product portfolios, broadening geographic coverage, increasing supply chain efficiencies, and optimizing logistics networks, we are confident that we will achieve balanced growth and higher levels of profitability over the next few quarters. ”

Financial Analysis:

The net revenue for the pavilion was $72.2 million trillion in the second quarter, up 52.6% from 47.3 million dollars in the same period last year. The increase of net revenue of LAN Pavilion is mainly due to the increase of customer number and total order quantity.

In the second quarter, clothing, small accessories and tools, as well as electronic and communications equipment, are still the three major sources of revenue for the pavilion.

By region, Europe remains the biggest market for the Orchid Pavilion, with revenues from the market being $44.1 million trillion, up 105.4% from a year earlier. In the second quarter, European revenues accounted for 61% per cent of the company's total revenue, up from 45.3% in the same period last year.

In the second quarter, the North American and South American revenues rose 16.3% and 196.9%, respectively, to $14.3 million and $7.3 million. Orchid Pavilion in the second quarter, North America and South America accounted for 19.8% and 10.1% of the company's total revenue.

In the second quarter, Orchid Pavilion revenue from other countries accounted for 6.6 million U.S. dollars, the proportion of the company's total revenue is 9.1%.

The Blue Pavilion's second-quarter gross profit was $33.2 million trillion, up 68.5% from 19.7 million trillion dollars in the same period last year. Orchid Pavilion Set potential gross profit growth, mainly by Yu Yinying to achieve a significant growth, and gross profit margin as the company optimized product portfolio and continue to grow. Orchid Pavilion Set potential for the second quarter gross margin of 46%, higher than the same period last year 41.7%.

The pavilion's total operating expenses for the second quarter were $32.2 million trillion, up 57% from $20.5 million a year earlier. In the second quarter, total operating expenditure accounted for 44.5% of total net revenue, up from 43.3% in the same period last year.

The pavilion's second-quarter performance spending was $3.7 million trillion, up 56.9% from 2.4 million trillion dollars in the same period last year. The growth of the performance expenditure of the Orchid pavilion mainly reflects the growth of sales volume and the number of fulfilled orders. In the second quarter, the percentage of performance expenditure in total net revenue accounted for 5.2%, higher than 5% in the same period last year.

The second-quarter sales and marketing spending for the pavilion was $19.6 million trillion, up 50.3% from $13 million a year earlier. Orchid Pavilion Set potential sales and marketing expenditure growth, mainly reflects the company to expand customer base and pay efforts. The second quarter's sales and marketing expenditures accounted for 27.1% of total net revenue, down from 27.6% in the same period last year.

The second quarter's general and administrative expenditures were $8.8 million trillion, up 74.1% from 5.1 million US dollars in the same period last year. The growth of the General Affairs and administrative expenditure of the Orchid pavilion mainly reflects the growth of the equity incentive expenditure. Orchid Pavilion in the second quarter, general and administrative expenditures accounted for 12.2% of total net revenue, up from 10.7% in the same period last year.

The second-quarter profit from business operations was $1.1 million trillion, with a loss of $800,000 from business operations over the same period last year. Orchid Pavilion Set potential operating profit margin of 1.5% in the second quarter.

Not in accordance with the United States General accounting standards (excluding equity incentive spending), the Orchid Pavilion set in the second quarter adjusted operating profit of 3.9 million U.S. dollars, the same period last year, 10,000 U.S. dollars. Not in accordance with the United States General accounting standards (excluding equity incentive spending), the Orchid Pavilion set the second quarter adjusted operating profit margin of 5.4%, the same period last year, 0%,

The net profit was $600,000 in the second quarter, with a net loss of $1.4 million over the same period last year. The net profit margin was 0.9% in the second quarter of the Orchid Pavilion.

Orchid Pavilion Set potential for the second quarter of the United States depository Receipts diluted loss of 0 U.S. dollars, the same period last year, the United States depository Receipts diluted loss of 0.12 U.S. dollars. Orchid Pavilion Set potential per share of the United States depository receipts on behalf of two common shares.

Not in accordance with the United States General accounting standards (excluding equity incentive spending), the Blue Pavilion set the second quarter adjusted net profit of 3.5 million U.S. dollars, the same period last year adjusted net loss of 600,000 U.S. dollars. Not in accordance with the United States General accounting standards (excluding equity incentive expenses), the pavilion after the second quarter of the adjustment of the United States depository Receipts in the U.S. certificate of credit diluted income of 0.10 U.S. dollars, last year after the adjustment of the United States depository receipts in a thin loss of 0.08 U.S. dollars.

In the quarter ended June 30, the margin of the adjusted operating profit, net profit and a share of U.S. depository receipts (not in accordance with the United States General Accounting standards) for the profit (not according to US GAAP) is not included in the 2.8 million dollar non-cash equity incentive expenditure.

In the quarter ending June 30, the average number of US depository receipts in the United States to calculate the diluted profits per share of US depository receipts was 26063206 shares.

As of June 30, 2013, the total cash and restricted cash holdings of the pavilion were $103.8 million, up to December 31, 2012 at $21.2 million.

The net cash flow from operating activities in the second quarter of the pavilion was $4.5 million trillion, compared with $700,000 a year earlier.

Performance Outlook:

The pavilion is expected to have net revenue of 68 million to 70 million dollars in the third quarter, up from 33.2% to 37.1% over the same period last year. This expectation reflects the company's current and preliminary views on market and operating conditions, and may change in the future.