BEIJING, March 31, 2015 /PRNewswire/ -- E-Commerce China
Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading
business-to-consumer e-commerce company in China, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2014.
Fourth Quarter and Fiscal Year 2014 Highlights
- Net Income for the fourth quarter of 2014 was
RMB32.8 million ($5.3 million), or 1.3% of total net revenues,
representing an increase of 51.4% from RMB21.7 million in the fourth quarter of 2013, or
1.1% of total net revenues.
- Total net revenues for the fourth quarter of 2014 were
RMB2,505.0 million ($403.7 million), a 27.0% increase from the
corresponding period in 2013. Gross Merchandise
Value ("GMV") from the marketplace in the fourth
quarter of 2014 was RMB2,247.1
million ($362.2 million), a
61.2% increase from the corresponding period in 2013. The
combination of product revenue from principal business and GMV from
the marketplace reached RMB4,662.3
million ($751.4 million) and
grew 42.7% year-over-year.
- Dangdang had approximately 9.8 million active customers
including approximately 3.7 million new customers, in the
fourth quarter of 2014, representing increases of 10% and 20%,
respectively, from the corresponding period in 2013. Total
orders for the fourth quarter of 2014 were approximately 20.4
million, a 13% increase from the corresponding period in 2013.
- Mobile orders accounted for 31% of total orders for the
fourth quarter of 2014, compared to 13% for the corresponding
period in 2013.
- Total net revenues in fiscal year 2014 were RMB7,957.0 million ($1,282.4 million), a 25.8% increase from
2013.
- Net income in fiscal year 2014 was RMB88.1 million ($14.2
million), compared to a net loss of RMB142.9 million in 2013.
- GMV from the marketplace in fiscal year 2014 was
RMB6,608.3 million ($1,065.1 million), a 76.9% increase from
2013.
"2014 was a year of great progress on all fronts. We grew
the top line by a healthy rate and posted a full year of
profitability. Our principal business is thriving and the
third party marketplace continues to perform well. We strengthened
our position as the dominant player in China's books and media market while improving
our gross margin. We have a fresh new brand image and slogan
'dare to do, and dare to be' which reflects our commitment to
offering authentic, high-quality products to earn our customers'
trust and recognition. We continue to enjoy strong growth momentum
in Mobile Dangdang," said Ms. Peggy Yu
Yu, Executive Chairwoman of Dangdang.
"From incurring a loss of RMB142.9
million in 2013 to realizing a profit of RMB88.1 million in 2014, the RMB231.0 million turnaround was remarkable
especially given our heavy spending in marketing and our investment
in digital books and mobile technology. In 2015, we will continue
to develop our principal and marketplace businesses and with our
significant market share in China's book industry, we intend to push
aggressively in digital content and ebooks to increase customer
stickiness. We will also invest heavily in mobile technology
and mobile marketing to ride the wave of customer migration into
the mobile world. With five consecutive quarters of
profitability, we are confident in our ability to deliver strong
results," Ms. Peggy Yu Yu
concluded.
Fourth Quarter 2014 Results
Dangdang's total net revenues in the fourth quarter of
2014 were RMB2,505.0 million
($403.7 million), a 27.0% increase
from the corresponding period in 2013.
Media product revenue for the fourth quarter of 2014 was
RMB1,455.2 million ($234.5 million), representing a 21.8% increase
from the corresponding period in 2013. General merchandise
revenue for the fourth quarter of 2014 was RMB960.0 million ($154.7
million), representing a 41.7% increase from the
corresponding period in 2013. Other revenue including revenue
from third-party merchants for the fourth quarter of 2014 was
RMB89.7 million ($14.5 million), representing a 9.7% decrease from
the corresponding period in 2013, primarily due to a decline in
shipping revenue from third-party merchants.
Dangdang had approximately 9.8 million active customers,
including approximately 3.7 million new customers, in the
fourth quarter of 2014, representing increases of 10% and 20%,
respectively, from the corresponding period in 2013. Total
orders for the fourth quarter of 2014 were approximately 20.4
million, a 13% increase from the corresponding period in 2013.
Gross margin in the fourth quarter of 2014 was 17.1%,
compared to 17.6% in the fourth quarter of 2013 and 18.9% in the
third quarter of 2014. The year-over-year and quarter-over-quarter
decreases in gross margin were due to a larger contribution of
general merchandise sales as a percentage of total net revenues and
a decline in shipping revenue from third-party merchants.
Fulfillment expenses which include warehousing, shipping
and customer service expenses, were RMB219.7
million ($35.4 million),
representing 8.8% of total net revenues, compared to 9.4% in the
corresponding period in 2013 and 10.1% in the third quarter of
2014. The year-over-year and quarter-over-quarter decreases in
fulfillment expenses as a percentage of total net revenues were
primarily due to larger order size.
Marketing expenses were RMB119.2
million ($19.2 million),
representing 4.8% of total net revenues, compared to 4.2% in the
corresponding period in 2013 and 5.5% in the third quarter of 2014.
The year-over-year increase in marketing expenses as a percentage
of total net revenues reflected increased investment in advertising
and marketing programs to build awareness of Dangdang's newer
destination categories. The quarter-over-quarter decrease as a
percentage of total net revenues was primarily due to significant
investments to promote mobile Dangdang and online and offline
marketing programs to build awareness of Dangdang's newer
destination categories in the third quarter of 2014.
Technology and content expenses were RMB64.0 million ($10.3
million), representing 2.6% of total net revenues, compared
to 2.0% in thecorresponding period in 2013 and 2.8% in the third
quarter of 2014. The year-over-year increase in technology and
content expenses as a percentage of total net revenues was
primarily due to increased headcount to support the expansion of
mobile Dangdang. The quarter-over-quarter decrease as a
percentage of total net revenues was primarily due to operating
leverage.
General and administrative expenses were RMB46.5 million ($7.5
million), representing 1.9% of total net revenues, compared
to 2.3% in the corresponding period in 2013 and 2.0% in the third
quarter of 2014. The year-over-year and quarter-over-quarter
decreases in general and administrative expenses as a percentage of
total net revenues were primarily due to larger scale and improved
management efficiency.
Government grants and value-added tax refunds were
RMB43.1 million ($6.9 million) representing 1.7% of total net
revenues, compared to 0.6% in the corresponding period in 2013 and
2.2% in the third quarter of 2014. The year-over-year increase as a
percentage of total net revenues was primarily due to refunds of
value added tax on books that was paid in 2013.
Share-based compensation expenses, which were allocated
to related expense line items, were RMB2.2
million ($0.4 million) in the
fourth quarter of 2014, compared to RMB3.2
million in the corresponding period in 2013,representing a
30.7% decrease.
Dangdang recorded operating income of RMB22.5 million ($3.6
million) in the fourth quarter of 2014, representing a
217.0% increase from RMB7.1 million
in the corresponding period in 2013.
Operating income excluding share-based compensation
expenses (non-GAAP) was RMB24.7
million ($4.0 million),
representing a 140.2% increase from RMB10.3
million in the corresponding period in 2013.
Net income was RMB32.8
million ($5.3 million),
representing a 51.4% increase from RMB21.7
million in the corresponding period in 2013.
Net income excluding share-based compensation expenses
(non-GAAP) was RMB35.0 million
($5.6 million), representing a 40.9%
increase from RMB24.9 million in the
corresponding period in 2013.
Net margin was 1.3%, compared to 1.1% in the
corresponding period in 2013. Non-GAAP net margin was 1.4%,
compared to a non-GAAP net margin of 1.3% in the corresponding
period in 2013.
Diluted earnings per ADS was RMB0.39 ($0.06),
compared to RMB0.26 in the
corresponding period in 2013.
Non-GAAP diluted earnings per ADS was RMB0.42 ($0.07),
compared to RMB0.30 in the
corresponding period in 2013.
As of December 31, 2014, Dangdang
had cash and cash equivalents, restricted cash, short-term time
deposits and held-to-maturity investments of RMB1,399.0 million ($225.5
million), compared to RMB1,213.5
million as of December 31,
2013. As of December 31, 2014,
Dangdang had no bank loans.
Capital expenditures for the fourth quarter of 2014 were
RMB26.7 million ($4.3 million).
Fiscal Year 2014 Results
Total net revenues in fiscal year 2014 were RMB7,957.0 million ($1,282.4 million), representing a 25.8% increase
from 2013.
Media product revenue in 2014 was RMB5,036.0 million ($811.7
million), representing a 24.3% increase from 2013.
General merchandise revenue in 2014 was RMB2,599.4 million ($418.9
million), representing a 30.3% increase from 2013. Other
revenue including revenues from third-party merchants in 2014
was RMB321.5 million ($51.8 million), representing a 15.1% increase
from 2013.
Dangdang had about 24.3 million active customers and 13.3
million new customers in 2014, representing 16% and 24%
increases from 2013, respectively. Total orders in 2014 were
approximately 72.1 million, a 13% increase from 2013.
Gross margin in the fiscal year 2014 was 18.5%, compared
to 17.4% in 2013 due to strong gross margin contribution from books
and media products, and the increase in other revenue, representing
the sustained scaling of the marketplace.
Fulfillment expenses which include warehousing, shipping
and customer service expenses, were RMB775.5
million ($125.0 million),
representing 9.7% of total net revenues, compared to 11.5% in 2013.
The decrease as a percentage of total net revenues was primarily
due to larger order size.
Marketing expenses were RMB374.2
million ($60.3 million),
representing 4.7% of total net revenues, compared to 4.1% in 2013.
The increase as a percentage of total net revenues was primarily
due to increased investment in advertising and marketing programs
to build awareness of Dangdang's newer destination categories and
to promote mobile Dangdang.
Technology and content expenses were RMB208.2 million ($33.6
million), representing 2.6% of total net revenues, compared
to 2.8% in 2013. The decrease as a percentage of total net revenues
was primarily due to operating leverage.
General and administrative expenses were RMB165.3 million ($26.6
million), representing 2.1% of total net revenues, compared
to 2.4% in 2013. The decrease as a percentage of total net revenues
was primarily due to larger scale and improved management
efficiency.
Government grants and value-added tax refunds were
RMB113.8 million ($18.3 million), representing 1.4% of total net
revenues, compared to 0.3% in 2013. The increase as a percentage of
total net revenues was primarily due to refunds of value added tax
on books that were paid in 2013.
Share-based compensation expenses, which were allocated
to the related expense line items, were RMB10.4 million ($1.7
million) in 2014, down 6.2% from RMB11.1 million in 2013.
Dangdang recorded operating income of RMB60.3 million ($9.7
million) in the fiscal year 2014, compared to an operating
loss of RMB195.5 million in 2013.
Operating income excluding share-based compensation
expenses (non-GAAP) was RMB70.7
million ($11.4 million) in the
fiscal year 2014, compared to an operating loss excluding
share-based compensation expenses (non-GAAP) of RMB184.4 million in 2013.
Net income was RMB88.1
million ($14.2 million),
compared to a net loss of RMB142.9
million in 2013.
Net income excluding share-based compensation expenses
(non-GAAP) was RMB98.5 million
($15.9 million), compared to a net
loss excluding share-based compensation expenses (non-GAAP) of
RMB131.8 million in 2013.
Net margin was 1.1%, compared to a net margin of negative
2.3% in 2013. Non-GAAP net margin was 1.2%, compared
to a non-GAAP net margin of negative 2.1% in 2013.
Diluted earnings per ADS was RMB1.06 ($0.17),
compared to a diluted loss per ADS of RMB1.78 in the corresponding period in
2013.
Non-GAAP diluted earnings per ADS was RMB1.18 ($0.19),
compared to non-GAAP diluted loss per ADS of RMB1.64 in 2013.
Full year capital expenditures were RMB103.8 million ($16.7
million).
Outlook for First Quarter 2015
Dangdang expects total net revenues in the first quarter of 2015
to be approximately RMB2.2 billion, representing
year-over-year growth of approximately 28%. The Company also
expects GMV from its marketplace to grow at a rate of
49% year-over-year to approximately RMB1.77 billion in the first quarter of 2015.
This forecast reflects Dangdang's current and preliminary view,
which is subject to change.
Adjustment of Previously Announced Unaudited Financial
Results
In connection with the preparation of the unaudited financial
information for the year ended December 31,
2014, the Company identified that certain transactions
recorded in the three-month periods ended June 30, 2014 and September 30, 2014 did not meet all revenue
recognition criteria. Accordingly, the Company's previously
announced unaudited net revenues and cost of revenues for the
three-month periods ended June 30,
2014 and September 30, 2014
have been adjusted downward by RMB179.1 million and RMB68.3 million, respectively. These
adjustments have no impact to the gross profit or net income for
such periods. These adjustments have been reflected in the
Company's unaudited financial results for fiscal year 2014 reported
in this release. The adjusted unaudited consolidated
statements of comprehensive income (loss) for the three-month
periods ended June 30, 2014 and
September 30, 2014 appear in the
tables at the end of this release, which replace the previously
announced unaudited consolidated statements of comprehensive income
(loss) for the same periods in their entirety.
Conference Call Information
Dangdang's management will host an earnings conference call
on March 31, 2015 at 8:00
AM U.S. Eastern Time (or 8:00 PM on March 31,
2015 Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as
follows:
US: +1-845-675-0437
China, Domestic: +400-620-8038
Hong Kong: +852-3018-6771
International: +65-6723-9381
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is
"Dangdang earnings call."
A replay of the conference call may be accessed by phone at the
following number through April 8, 2015:
International: +61-2-8199-0299
Conference ID: 98091668
A live and archived webcast of this conference call will be
available at http://ir.dangdang.com through March 31, 2016.
About Dangdang
E-Commerce China Dangdang Inc. is a leading business-to-consumer
e-commerce company in China. On
its website dangdang.com and through mobile Dangdang, the Company
offers books and media products as well as selected general
merchandise products including fashion and apparel, baby, children
and maternity and home and lifestyle products, among others. It
also operates the dangdang.com marketplace program, which allows
third-party merchants to sell their products alongside products
sourced by the Company. Dangdang is transforming itself into an
integrated online shopping experience with prominent destination
categories. Dangdang's nationwide fulfilment and delivery
capabilities, high-quality customer service support and scalable
technology infrastructure enable it to provide a compelling online
shopping experience to customers. For more information, please
visit ir.dangdang.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for the first quarter 2015 and quotations
from management in this announcement, as well as Dangdang's
strategic and operational plans, contain forward-looking
statements. Dangdang may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about
Dangdang's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: Dangdang's
growth strategies; its future business development, results of
operations and financial condition; its ability to attract and
retain new customers and to increase revenues generated from repeat
customers; its expectations regarding demand for and market
acceptance of its products and services; trends and competition in
China's business-to-consumer
e-commerce market; changes in its revenues and certain cost or
expense items; the expected growth of the Chinese
business-to-consumer e-commerce market; Chinese governmental
policies relating to Dangdang's industry and general economic
conditions in China. Further
information regarding these and other risks is included in
Dangdang's annual report on Form 20-F and other documents filed
with the Securities and Exchange Commission. Dangdang does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided
in this press release and in the attachments is as of the date of
this press release, and Dangdang undertakes no duty to update such
information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Dangdang's consolidated financial results
presented in accordance with United States Generally Accepted
Accounting Principles ("GAAP"), we use the following measures as
non-GAAP financial measures: non-GAAP operating (loss) income,
non-GAAP operating margin, non-GAAP net(loss) income , non-GAAP net
margin, non-GAAP diluted (loss) earnings per ADS and adjusted
EBITDA (collectively referred to as the "Non-GAAP Financial
Measures" thereafter). We define non-GAAP operating (loss) income,
non-GAAP operating margin, non-GAAP net (loss) income, non-GAAP net
margin and non-GAAP diluted (loss) earnings per ADS
as operating (loss) income, operating margin, net (loss)
income, net margin and diluted (loss) earnings per ADS
excluding the impact of share-based compensation expenses
respectively; we define adjusted EBITDA as (loss) income before
interest, taxes, depreciation, amortization, other non-operating
income, and share-based compensation expenses. We review the
Non-GAAP Financial Measures together with net (loss) income to
obtain a better understanding of our operating performance. We
believe that these Non-GAAP Financial Measures provide meaningful
supplemental information regarding the Company's performance and
liquidity. However, a limitation of using the Non-GAAP Financial
Measures as an analytical tool is that they do not include all
items that impact operating (loss) income, operating margin, net
(loss) income, and net margin or diluted (loss) earnings per ADS
for the period. In addition, because they are not calculated in the
same manner by all companies, they may not be comparable to other
similar titled measures used by other companies. In light of the
foregoing limitations, you should not consider the Non-GAAP
Financial Measures in isolation from or as an alternative to
operating (loss) income, operating margin, net (loss) income, and
net margin or diluted (loss) earnings per ADS prepared in
accordance with U.S. GAAP.
For information on the reconciliation between the Non-GAAP
Financial Measures and the GAAP financial measures presented
in accordance with U.S. GAAP for the periods presented, please see
the tables captioned "Non-GAAP operating (loss) income, operating
margin and net (loss) income" and "Adjusted EBITDA" at the end of
this release.
Investor Contacts:
Tony Hung
Senior Investor Relations Director
E-Commerce China Dangdang Inc.
Phone: +86-10-5799-2301
E-mail: ir@dangdang.com
Sophia Zhou
Investor Relations Director
E-Commerce China Dangdang Inc.
Phone: +86-10-5799-2306
E-mail: ir@dangdang.com
Elaine Ketchmere, CFA
Compass Investor Relations
Phone: +1-310-528-3031
E-mail: eketchmere@compass-ir.com
- Financial Tables Follow -
E-Commerce China
Dangdang Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except share related data)
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
2013
|
|
As of December 31,
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Audited)
|
|
(Unaudited)
|
(Unaudited)
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
353,273
|
|
350,946
|
56,562
|
Restricted
cash
|
6,964
|
|
23,726
|
3,824
|
Time deposits with
original maturities
|
853,222
|
|
674,363
|
108,688
|
exceeding three
months
|
Held-to-maturity
investments
|
-
|
|
350,000
|
56,410
|
Inventories
|
1,760,904
|
|
2,201,170
|
354,764
|
Accounts receivable,
net
|
37,446
|
|
28,763
|
4,636
|
Prepaid expenses and
other current assets
|
328,887
|
|
543,180
|
87,545
|
Amounts due from
related parties
|
2,691
|
|
375
|
60
|
Total current
assets
|
3,343,387
|
|
4,172,523
|
672,489
|
|
|
|
|
|
Fixed assets,
net
|
241,805
|
|
252,966
|
40,771
|
Intangible assets,
net
|
43,316
|
|
42,423
|
6,837
|
Prepaid expenses and
deposits
|
5,949
|
|
14,589
|
2,351
|
Total
assets
|
3,634,457
|
|
4,482,501
|
722,448
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
1,970,651
|
|
2,446,848
|
394,360
|
Deferred
revenue
|
407,794
|
|
627,122
|
101,074
|
Accrued expenses and
other current liabilities
|
650,413
|
|
704,483
|
113,542
|
Amounts due to
related parties
|
3,182
|
|
2,237
|
361
|
Total current
liabilities
|
3,032,040
|
|
3,780,690
|
609,337
|
|
|
|
|
|
Non-current
liabilities
|
32,724
|
|
24,227
|
3,905
|
Total
liabilities
|
3,064,764
|
|
3,804,917
|
613,242
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Class A common shares
(par value of
US$0.0001 per share;
686,505,790 shares
authorized;
270,466,820 and 272,092,590
shares issued and
outstanding as of
December 31, 2013 and
December 31, 2014,
respectively)
|
201
|
|
201
|
32
|
|
|
|
|
|
Class B common shares
(par value of
US$0.0001 per share;
313,494,210 shares
authorized;
131,876,660 shares issued and
outstanding as of
December 31, 2013 and
December 31,
2014)
|
103
|
|
103
|
17
|
Additional paid-in
capital
|
1,871,095
|
|
1,885,878
|
303,948
|
Accumulated other
comprehensive loss
|
(134,939)
|
|
(129,948)
|
(20,944)
|
Accumulated
deficit
|
(1,166,767)
|
|
(1,078,650)
|
(173,847)
|
Total
shareholders' equity
|
569,693
|
|
677,584
|
109,206
|
Total liabilities
and shareholders' equity
|
3,634,457
|
|
4,482,501
|
722,448
|
E-Commerce China
Dangdang Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (In thousands, except share related
data)
|
|
|
Three Months
Ended
|
|
December 31,
2013
|
|
December 31,
2014
|
December 31,
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
Net
revenues
|
|
|
|
|
Product
revenue
|
1,872,577
|
|
2,415,277
|
389,272
|
Media
|
1,195,121
|
|
1,455,245
|
234,543
|
General merchandise
|
677,456
|
|
960,032
|
154,729
|
Other
revenue
|
99,323
|
|
89,714
|
14,459
|
|
|
|
|
|
Total net
revenues
|
1,971,900
|
|
2,504,991
|
403,731
|
|
|
|
|
|
Cost of
revenues
|
(1,623,956)
|
|
(2,076,168)
|
(334,618)
|
|
|
|
|
|
Gross
profit
|
347,944
|
|
428,823
|
69,113
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Fulfillment
|
(185,348)
|
|
(219,690)
|
(35,408)
|
Marketing
|
(82,807)
|
|
(119,176)
|
(19,208)
|
Technology and
content
|
(39,241)
|
|
(63,993)
|
(10,314)
|
General and
administrative
|
(45,493)
|
|
(46,506)
|
(7,495)
|
Government
grants and value-added tax refunds
|
12,051
|
|
43,065
|
6,941
|
|
|
|
|
|
Total operating
expenses, net
|
(340,838)
|
|
(406,300)
|
(65,484)
|
|
|
|
|
|
Income from
operations
|
7,106
|
|
22,523
|
3,630
|
|
|
|
|
|
Interest
income
|
9,598
|
|
12,764
|
2,057
|
|
|
|
|
|
Interest
expense
|
(240)
|
|
-
|
-
|
|
|
|
|
|
Other income
(expenses), net
|
5,196
|
|
(2,488)
|
(401)
|
|
|
|
|
|
Income before income
taxes
|
21,660
|
|
32,799
|
5,286
|
|
|
|
|
|
Income tax
expenses
|
-
|
|
-
|
-
|
|
|
|
|
|
Net income
|
21,660
|
|
32,799
|
5,286
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common
shareholders
|
21,660
|
|
32,799
|
5,286
|
|
|
|
|
|
Income per
common share:
|
|
|
|
|
- Basic
|
0.05
|
|
0.08
|
0.01
|
- Diluted
|
0.05
|
|
0.08
|
0.01
|
|
|
|
|
|
Income per
ADS:
|
|
|
|
|
- Basic
|
0.27
|
|
0.41
|
0.07
|
- Diluted
|
0.26
|
|
0.39
|
0.06
|
|
|
|
|
|
Income
allocated to common shareholders
used in income per share/ADS calculation:
|
|
|
|
|
- Basic
|
21,660
|
|
32,799
|
5,286
|
- Diluted
|
21,660
|
|
32,799
|
5,286
|
Shares used in income
per common share
computation:
|
|
|
|
|
|
|
|
|
|
Class A common
shares:
|
|
|
|
|
- Basic
|
270,351,248
|
|
272,009,317
|
272,009,317
|
- Diluted
|
414,771,148
|
|
416,206,757
|
416,206,757
|
Class B common
shares:
|
|
|
|
|
- Basic
|
131,876,660
|
|
131,876,660
|
131,876,660
|
- Diluted
|
131,876,660
|
|
131,876,660
|
131,876,660
|
|
|
|
|
|
ADSs used in income
per ADS calculation:
|
|
|
|
|
- Basic
|
80,445,582
|
|
80,777,195
|
80,777,195
|
- Diluted
|
82,954,230
|
|
83,241,351
|
83,241,351
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
|
Foreign
currency translation adjustment, net
of taxes
|
(11,940)
|
|
(7,810)
|
(1,259)
|
|
|
|
|
|
Comprehensive income
attributable to
common shareholders
|
9,720
|
|
24,989
|
4,027
|
|
|
|
|
|
E-Commerce China
Dangdang Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)
INCOME
|
(In thousands,
except share related data)
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
December
31,
|
|
2013
|
2014
|
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Audited)
|
|
(Unaudited)
|
(Unaudited)
|
Net
revenues
|
|
|
|
|
Product revenue
|
6,045,573
|
|
7,635,450
|
1,230,611
|
Media
|
4,050,122
|
|
5,036,039
|
811,662
|
General
merchandise
|
1,995,451
|
|
2,599,411
|
418,949
|
Other revenue
|
279,425
|
|
321,513
|
51,818
|
|
|
|
|
|
Total net
revenues
|
6,324,998
|
|
7,956,963
|
1,282,429
|
|
|
|
|
|
Cost of
revenues
|
(5,224,114)
|
|
(6,487,201)
|
(1,045,547)
|
|
|
|
|
|
Gross
profit
|
1,100,884
|
|
1,469,762
|
236,882
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Fulfillment
|
(727,683)
|
|
(775,534)
|
(124,993)
|
Marketing
|
(260,988)
|
|
(374,227)
|
(60,314)
|
Technology and content
|
(180,158)
|
|
(208,214)
|
(33,558)
|
General and administrative
|
(148,919)
|
|
(165,284)
|
(26,639)
|
Government grants and value-added tax refunds
|
21,392
|
|
113,781
|
18,338
|
|
|
|
|
|
Total operating
expenses, net
|
(1,296,356)
|
|
(1,409,478)
|
(227,166)
|
|
|
|
|
|
(Loss) income from
operations
|
(195,472)
|
|
60,284
|
9,716
|
|
|
|
|
|
Interest
income
|
30,727
|
|
44,839
|
7,227
|
|
|
|
|
|
Interest
expense
|
(6,042)
|
|
-
|
-
|
|
|
|
|
|
Other income
(expenses), net
|
27,922
|
|
(17,006)
|
(2,741)
|
|
|
|
|
|
(Loss) income before
income taxes
|
(142,865)
|
|
88,117
|
14,202
|
|
|
|
|
|
Income tax
expenses
|
-
|
|
-
|
-
|
|
|
|
|
|
Net (loss)
income
|
(142,865)
|
|
88,117
|
14,202
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common shareholders
|
(142,865)
|
|
88,117
|
14,202
|
|
|
|
|
|
(Loss) income per
common share:
|
|
|
|
|
- Basic
|
(0.36)
|
|
0.22
|
0.04
|
- Diluted
|
(0.36)
|
|
0.21
|
0.03
|
|
|
|
|
|
(Loss) income per
ADS:
|
|
|
|
|
- Basic
|
(1.78)
|
|
1.09
|
0.18
|
- Diluted
|
(1.78)
|
|
1.06
|
0.17
|
|
|
|
|
|
(Loss) income
allocated to common
|
|
|
|
|
shareholders used in
(loss) income per
|
share/ADS
calculation:
|
- Basic
|
(142,865)
|
|
88,117
|
14,202
|
- Diluted
|
(142,865)
|
|
88,117
|
14,202
|
Shares used in (loss)
income per common share computation:
|
|
|
|
|
|
|
|
|
Class A common
shares:
|
|
|
|
|
- Basic
|
269,520,110
|
|
271,445,384
|
271,445,384
|
- Diluted
|
401,416,715
|
|
416,533,054
|
416,533,054
|
Class B common
shares:
|
|
|
|
|
- Basic
|
131,896,605
|
|
131,876,660
|
131,876,660
|
- Diluted
|
131,896,605
|
|
131,876,660
|
131,876,660
|
|
|
|
|
|
ADSs used in (loss)
income per ADS
|
|
|
|
|
calculation:
|
- Basic
|
80,283,343
|
|
80,664,409
|
80,664,409
|
- Diluted
|
80,283,343
|
|
83,306,611
|
83,306,611
|
|
|
|
|
|
Other comprehensive
(loss) income
|
|
|
|
|
Foreign currency translation
|
(42,873)
|
|
4,991
|
804
|
adjustment, net of
taxes
|
|
|
|
|
|
Comprehensive (loss)
income
|
(185,738)
|
|
93,108
|
15,006
|
attributable to
common shareholders
|
|
|
|
|
|
Share-based
compensation
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
December
31,
|
|
2013
|
2014
|
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
Share-based
compensation expenses included are as follows:
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Fulfillment
|
457
|
|
573
|
93
|
Marketing
|
128
|
|
124
|
20
|
Technology and content
|
222
|
|
298
|
48
|
General and administrative
|
2,387
|
|
1,218
|
196
|
Total
|
3,194
|
|
2,213
|
357
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
|
|
(In
thousands)
|
|
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
December
31,
|
|
2013
|
|
2014
|
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Audited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
Share-based
compensation expenses included are as follows:
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Fulfillment
|
1,755
|
|
2,126
|
343
|
Marketing
|
412
|
|
509
|
82
|
Technology and content
|
964
|
|
1,075
|
173
|
General and administrative
|
7,977
|
|
6,707
|
1,081
|
Total
|
11,108
|
|
10,417
|
1,679
|
|
|
|
|
|
(1) This announcement
contains translations of certain RMB amounts into U.S. dollars at
specified rates solely for the convenience of the reader.
Unless otherwise noted, all translations from RMB to U.S. dollars
are made at a rate of RMB6.2046 to US$1.00, the noon buying rate on
Dec 31,
2014 in the City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of New
York.
|
(2) Each ADS
represents five common shares of the Company.
|
|
|
|
|
|
Non-GAAP operating
income, operating margin and net income
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
December
31,
|
|
2013
|
|
2014
|
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
Income from
operations
|
7,106
|
|
22,523
|
3,630
|
Share-based
compensation expenses
|
3,194
|
|
2,213
|
357
|
Non-GAAP operating
income
|
10,300
|
|
24,736
|
3,987
|
|
|
|
|
|
Operating
margin
|
0.4%
|
|
0.9%
|
0.9%
|
Share-based
compensation expenses
|
0.1%
|
|
0.1%
|
0.1%
|
Non-GAAP operating
margin
|
0.5%
|
|
1.0%
|
1.0%
|
|
|
|
|
|
Net
income
|
21,660
|
|
32,799
|
5,286
|
Share-based
compensation expenses
|
3,194
|
|
2,213
|
357
|
Non-GAAP net
income
|
24,854
|
|
35,012
|
5,643
|
|
|
|
|
|
|
|
Non-GAAP operating
(loss) income, operating margin and net (loss)
income
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
December
31,
|
2013
|
2014
|
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
(Loss) income from
operations
|
(195,472)
|
|
60,284
|
9,716
|
Share-based
compensation expenses
|
11,108
|
|
10,417
|
1,679
|
Non-GAAP operating
(loss) income
|
(184,364)
|
|
70,701
|
11,395
|
|
|
|
|
|
Operating
margin
|
-3.1%
|
|
0.8%
|
0.8%
|
Share-based
compensation expenses
|
0.2%
|
|
0.1%
|
0.1%
|
Non-GAAP operating
margin
|
-2.9%
|
|
0.9%
|
0.9%
|
|
|
|
|
|
Net (loss)
income
|
(142,865)
|
|
88,117
|
14,202
|
Share-based
compensation expenses
|
11,108
|
|
10,417
|
1,679
|
Non-GAAP net (loss)
income
|
(131,757)
|
|
98,534
|
15,881
|
|
|
|
|
|
Adjusted
EBITDA
|
|
(In
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
December
31,
|
2013
|
2014
|
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
Income from
operations
|
7,106
|
|
22,523
|
3,630
|
Add back:
|
|
|
|
|
Depreciation and amortization
|
12,112
|
|
14,249
|
2,297
|
Share-based compensation
expenses
|
3,194
|
|
2,213
|
357
|
Adjusted EBITDA
|
22,412
|
|
38,985
|
6,284
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
December
31,
|
|
2013
|
2014
|
2014
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Loss) income from
operations
|
(195,472)
|
|
60,284
|
9,716
|
Add back:
|
|
|
|
|
Depreciation and amortization
|
48,929
|
|
54,350
|
8,760
|
Share-based compensation expenses
|
11,108
|
|
10,417
|
1,679
|
Adjusted EBITDA
|
(135,435)
|
|
125,051
|
20,155
|
E-Commerce China
Dangdang Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(In thousands,
except share related data)
|
|
Three Months
Ended
|
|
June 30,
2014
|
|
September 30,
2014
|
|
RMB
|
|
RMB
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenues
|
|
|
|
Product
revenue*
|
1,701,177
|
|
1,850,662
|
Media*
|
1,176,871
|
|
1,252,250
|
General merchandise
|
524,306
|
|
598,412
|
Other
revenue
|
80,477
|
|
83,877
|
|
|
|
|
Total net
revenues*
|
1,781,654
|
|
1,934,539
|
|
|
|
|
Cost of
revenues*
|
(1,423,084)
|
|
(1,568,827)
|
|
|
|
|
Gross
profit
|
358,570
|
|
365,712
|
|
|
|
|
Operating
expenses:
|
|
|
|
Fulfillment
|
(189,779)
|
|
(195,290)
|
Marketing
|
(81,543)
|
|
(106,625)
|
Technology and
content
|
(47,040)
|
|
(53,619)
|
General and
administrative
|
(41,594)
|
|
(39,549)
|
Government
grants and value added tax refunds
|
15,980
|
|
42,468
|
|
|
|
|
Total operating
expenses, net
|
(343,976)
|
|
(352,615)
|
|
|
|
|
Income from
operations
|
14,594
|
|
13,097
|
|
|
|
|
Interest
income
|
10,426
|
|
13,645
|
|
|
|
|
Interest
expense
|
-
|
|
-
|
|
|
|
|
Other income,
net
|
3,801
|
|
(2,200)
|
|
|
|
|
Income before income
taxes
|
28,821
|
|
24,542
|
|
|
|
|
Income tax
expense
|
-
|
|
-
|
|
|
|
|
Net income
|
28,821
|
|
24,542
|
|
|
|
|
|
|
|
|
Net income
attributable to common shareholders
|
28,821
|
|
24,542
|
|
|
|
|
Income per common
share:
|
|
|
|
- Basic
|
0.07
|
|
0.06
|
- Diluted
|
0.07
|
|
0.06
|
|
|
|
|
Income per
ADS:
|
|
|
|
- Basic
|
0.36
|
|
0.30
|
- Diluted
|
0.35
|
|
0.29
|
|
|
|
|
Income allocated to
common shareholders used in income
per share/ADS calculation:
|
|
|
|
- Basic
|
28,821
|
|
24,542
|
- Diluted
|
28,821
|
|
24,542
|
Shares used in income
per common share computation:
|
|
|
|
|
|
|
|
Class A common
shares:
|
|
|
|
- Basic
|
271,309,522
|
|
271,729,455
|
- Diluted
|
416,177,972
|
|
417,283,285
|
Class B common
shares:
|
|
|
|
- Basic
|
131,876,660
|
|
131,876,660
|
- Diluted
|
131,876,660
|
|
131,876,660
|
|
|
|
|
ADSs used in income
per ADS calculation:
|
|
|
|
- Basic
|
80,637,236
|
|
80,721,223
|
- Diluted
|
83,235,594
|
|
83,456,657
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
Foreign
currency translation adjustment, net of taxes
|
156
|
|
(76)
|
Unrealized
gain on available-for-sale investments, net of taxes
|
978
|
|
-
|
Transferred to
statements of comprehensive income of
realized gain on available-for-sale
investments, net of taxes
|
-
|
|
(1,493)
|
|
|
|
|
Comprehensive income
attributable to common shareholders
|
29,955
|
|
22,973
|
|
* These line items
have been adjusted, as set forth in detail below.
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Previous Announced
Amount
|
Adjusted
Amount
|
|
Change
|
|
Q2
2014
|
|
Q3
2014
|
|
Q2
2014
|
|
Q3
2014
|
|
Q2
2014
|
|
Q3
2014
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Revenue
|
1,880,299
|
|
1,918,928
|
|
1,701,177
|
|
1,850,662
|
|
(179,122)
|
|
(68,266)
|
Media
|
1,355,993
|
|
1,320,516
|
|
1,176,871
|
|
1,252,250
|
|
(179,122)
|
|
(68,266)
|
Total net
revenues
|
1,960,776
|
|
2,002,805
|
|
1,781,654
|
|
1,934,539
|
|
(179,122)
|
|
(68,266)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1,602,206)
|
|
(1,637,093)
|
|
(1,423,084)
|
|
(1,568,827)
|
|
179,122
|
|
68,266
|
Gross
profit
|
358,570
|
|
365,712
|
|
358,570
|
|
365,712
|
|
-
|
|
-
|
Non-GAAP operating
income, operating margin and net income
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2014
|
|
September
30,
2014
|
|
|
RMB
|
|
RMB
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Income from
operations
|
|
14,594
|
|
13,097
|
Share-based
compensation expenses
|
|
2,890
|
|
2,118
|
Non-GAAP operating
income
|
|
17,484
|
|
15,215
|
|
|
|
|
|
Operating
margin
|
|
0.8%
|
|
0.7%
|
Share-based
compensation expenses
|
|
0.2%
|
|
0.1%
|
Non-GAAP operating
margin
|
|
1.0%
|
|
0.8%
|
|
|
|
|
|
Net income
|
|
28,821
|
|
24,542
|
Share-based
compensation expenses
|
|
2,890
|
|
2,118
|
Non-GAAP net
income
|
|
31,711
|
|
26,660
|
|
* These line items
have been adjusted, as set forth in detail below.
|
|
|
|
|
|
|
|
|
|
Q2
2014
|
|
|
Previous
Announced
Amount
|
|
Adjusted
Amount
|
|
Change
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
0.7%
|
|
0.8%
|
|
0.1%
|
Share-based
compensation expenses
|
|
0.2%
|
|
0.2%
|
|
-
|
Non-GAAP operating
margin
|
|
0.9%
|
|
1.0%
|
|
0.1%
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dangdang-announces-unaudited-fourth-quarter-and-fiscal-year-2014-results-300058359.html
SOURCE E-Commerce China Dangdang Inc.