Dangdang net loss of $10.4 million in the second quarter Compared with the narrow

hunting cloud network on August 15, dangdang published today in the second quarter results, according to data from the second quarter net revenue of 1.4935 billion yuan ($243.3 million), up 24% from a year earlier. The net loss of 63.9 million yuan ($10.4 million), and the annulus compared have narrowed.

in the second quarter of 2013 window

l gross margin was 17.1% in the second quarter of 2013, by contrast, the data in the second quarter of 2012 was 13.1%, 17.2% in the first quarter of 2013.

l in the second quarter of 2013 the net loss of 63.9 million yuan ($10.4 million), a net loss rate was 4.3%; In contrast, in the second quarter of 2012 net loss of 122.2 million yuan, net loss rate was 10.1%; In the first quarter of 2013 net loss of 72.7 million yuan, net loss rate was 5.5%.

l third-party trading platform in the second quarter of 2013 total of 788.4 million yuan ($128.5 million), an increase of 178% compared to the same period of 2012. Platform and proprietary comprehensive department store sales increased by 86% year-on-year.

l dangdang has about 7.6 million active users, including about 2.4 million new customers in the second quarter of 2013, compared with the same period in 2012 increased by 28% and 28% respectively. The total orders for the second quarter of 2013 to 15 million, a 25% increase from the same period in 2012.

“we achieved strong performance, and a quarter sales steady growth, healthy margins expansion and further growth of our customer base, all of which help us since the third quarter of 2011 net loss narrowed. Investing in the market and brand at the same time also can narrow our net loss is a major breakthrough for us.” Dangdang network executive chairman — who said.

“this quarter, product sales increased by 22%, which makes us keep the online publication of the share of the market advantage. Dangdang third-party platform once again showed strong growth momentum, total trade rose 178% in the second quarter of the third party platform. Contains proprietary and platform, including the department of sales more than a third consecutive quarter sales of publications, we are to the positioning in the high-end customers comprehensive shopping mall in transition. Looking to the future, we plan to across the category marketing and improve overall customer experience means to exploit their purchasing power, so as to better use our positioning in the high-end customer group’s development strategy. so far, in light of our financial performance, to further improve throughout the year.

“in addition to strong sales growth, we see the gross margin improved significantly, compared with the same period last year rose to 400 basis points to 17.1%. Using fine operation, especially the warehousing logistics and inventory management more effective, our net loss narrowed to 63.9 million yuan, net loss rate was 4.3%, this is the best performance since the third quarter of 2011.” Dangdang chief financial President, says Mr Zou Jun “in addition, our efforts to reach RMB 47 million in cash flow management of operating cash flow, and data of RMB 19 million over the same period last year.”

in the second quarter 2013 results

in the second quarter of 2013 dangdang’s total net operating income of 1.4935 billion yuan ($243.3 million), up 24% over the same period in 2012.

in the second quarter of 2013 publications income of RMB 945.2 million ($154 million), compared with the same period in 2012 increased by 22%. In the second quarter of 2013 department income of 484.5 million yuan ($78.9 million), compared with the same period in 2012 increased by 20%, accounting for 32% of the total net operating income, compared with the data of the same period in 2012 was 33%. In the second quarter of 2013 from the third party platform of other income of 63.8 million yuan ($10.4 million), compared with the same period in 2012 increased by 91%.

dangdang has about 7.6 million active customers, including the growth in the second quarter of 2013 about 2.4 million new customers, compared with the same period in 2012 increased by 28% and 28%. In the second quarter of 2013 the total order of about 2013, compared with the same period in 2012 increased 25%

the cost of sales of 1.2378 billion yuan ($201.7 million), accounting for 82.9% of the total, compared with the same period in 2012 data was 86.9%. Operating cost in the total percentage decline is mainly due to the implementation of strategic category mapping, to certain categories in dangdang proprietary procurement categories of markets and economies of scale. Gross profit margin of 17.1% in the second quarter of 2013, compared with 13.1% over the same period in 2012 data, the data in the first quarter of 2013 by 17.2%. Its year-on-year growth is mainly due to the other income increases, the size of the market expansion and proprietary business gross margin improvement based on economies of scale.

warehousing logistics cost including storage cost and shipping freight, a total of 178.5 million yuan ($29.1 million), accounting for 12.0% of the total revenue, by contrast, in the same period in 2012 data was 15.0%, the data in the first quarter of 2013 was 13.8%. With annulus compared to the decline is mainly due to the constant refinement of operations, improve warehouse management system and lower the unit delivery costs.

marketing fee of RMB 76.8 million ($12.5 million), accounting for 5.1% of the total, compared with the same period in 2012 data was 3.0%. The increase is mainly due to the market for clothing marketing and brand promotion activities, such as in a line of TV channel advertising costs, other offline media and other targeted marketing activities.

technology research and development costs of 47 million yuan ($7.7 million), accounting for 3.1% of the total revenue, by contrast, in the same period in 2012 data was 3.2%, compared with the same period in 2013 data was 3.7%. And fell the main reason is that compared to the continuous refinement of operations.

administrative costs RMB 35 million ($5.7 million), accounting for 2.3% of the total, compared with the same period in 2012 data was 2.6%. General affairs and administrative expenses decline is mainly using the refinement operation and improve the efficiency of management.

in the second quarter of 2013 related fees to the project of the option premium of RMB 2.6 million ($400000), compared with the same period in 2012 of 2.8 million yuan, down 7%.

dangdang recorded by the second quarter of 2013, operating loss of 78.9 million yuan ($12.9 million), compared with the same period in 2012 operating loss of 126.2 million yuan has decreased, the decrease is mainly due to the gross profit growth and constant refinement operations.

deducting operating losses of the option premium (non-gaap) of 76.3 million yuan ($12.4 million), compared with the same period in 2012 to deduct the premium of operating loss (non-gaap) 123.4 million yuan fell.

the net loss of 63.9 million yuan ($10.4 million), in the second quarter of 2012 and the first quarter of 2013, the data of RMB 122.2 million yuan and 72.7 million yuan each, its decline is mainly due to the company gross margin and continuous efforts for the fine operation of ascension.

net loss rate was 4.3%, compared with the same period in 2012 net loss rate improved 10.1%.

to deduct the cost of stock option net loss (gaap) 61.3 million yuan ($10 million) for the people, compared with the same period in 2012 to deduct the premium a net loss of RMB 119.4 million (gaap) have fallen.

as of June 30, 2013, dangdang has cash and cash equivalents, short-term deposit and the held-to-maturity investment totaling 1.2912 billion yuan ($210.4 million). Because as of June 30, 2013, dangdang is not restricted cash and short-term debt, more as of December 31, 2012, the data of 163460 yuan (contain restricted cash RMB 709.4 million).

in the second quarter of 2013 capital expenditure of 35.4 million yuan ($5.8 million), including the 32.8 million yuan invested in tianjin warehouse construction.

in the second quarter of 2013 adjusted profit before interest, tax, depreciation and amortisation of losses (gaap) to 63.8 million yuan ($10.4 million), compared with the same period in 2012 after adjusting interest tax, depreciation and amortisation loss 113.5 million yuan.

in the third quarter of 2013 outlook

dangdang network in the third quarter of 2013 is expected to total net revenue will be about 1.584 billion yuan, about 23% from a year earlier. At the same time we also expect dangdang market trading volume in the third quarter of 2013 rose 165%. , of course, this only reflects dangdang current and preliminary view, may change.