BEIJING, Nov. 24, 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 third quarter
ended September 30, 2015.
Third Quarter 2015 Highlights
- Total net revenues for the third quarter of 2015 were
RMB2,371.9 million ($373.2 million), a 22.6% increase from the
corresponding period in 2014. Gross Merchandise
Value ("GMV") from the marketplace in the third quarter of
2015 was RMB1,684.4 million
($265.0 million), a 3.4% decrease
from the corresponding period in 2014. The combination of product
revenue from principal business and GMV from the marketplace
reached RMB3,992.1 million
($628.1 million) and grew 11.1%
year-over-year.
- Dangdang had approximately 10.7 million active
customers, including approximately 4.4 million new
customers, in the third quarter of 2015, representing increases
of 12% and 25%, respectively, from the corresponding period in
2014. Total orders for the third quarter of 2015 were
approximately 20.1 million, a 7% increase from the corresponding
period in 2014.
- Mobile orders accounted for 42% of total orders for the
third quarter of 2015, compared to 24% for the corresponding period
in 2014.
- Net loss for the third quarter of 2015 was RMB28.1 million ($4.4
million), or negative 1.2% of total net revenues, compared
to net income of RMB24.5 million in
the third quarter of 2014, or 1.3% of total net revenues.
"In the third quarter of 2015, we posted revenue growth, a
quarter-over-quarter increase in gross margin and solid increases
in both new and active customers at a low acquisition cost.
Supported by our successful brand building investments over the
last few quarters, we focused on targeted, efficient marketing
campaigns and achieved positive results," said Ms. Peggy Yu Yu, Executive Chairwoman of
Dangdang.
"Mobile orders reached 42% of total sales during the
quarter. We added a new online community to our reading
platform to enhance customer stickiness. This will encourage users
to spend more time reading, interacting, shopping and creating
content on our platforms, thereby bringing the customer experience
full circle. Going forward, we will continue cultivating the
synergies between wireless shopping and the digital book business
for future growth," Ms. Peggy Yu Yu
concluded.
Third Quarter 2015 Results
Dangdang's total net revenues in the third quarter of
2015 were RMB2,371.9 million
($373.2 million), a 22.6% increase
from the corresponding period in 2014.
Media product revenue for the third quarter of 2015 was
RMB1,418.5 million ($223.2 million), representing a 13.3% increase
from the corresponding period in 2014. General merchandise
revenue for the third quarter of 2015 was RMB889.2 million ($139.9
million), representing a 48.6% increase from the
corresponding period in 2014. Other revenue including revenue
from third-party merchants for the third quarter of 2015 was
RMB64.2 million ($10.1 million), representing a 23.4% decrease
from the corresponding period in 2014, primarily due to the decline
in GMV from the marketplace, resulting in a reduction in platform
commission fees along with lower logistic revenue from third party
merchants.
Dangdang had approximately 10.7 million active customers,
including approximately 4.4 million new customers, in the
third quarter of 2015, representing increases of 12% and 25%,
respectively, from the corresponding period in 2014. Total
orders for the third quarter of 2015 were approximately 20.1
million, a 7% increase from the corresponding period in 2014.
Gross margin in the third quarter of 2015 was 15.6%,
compared to 18.9% in the third quarter of 2014 and 14.8% in the
second quarter of 2015. The year-over-year decrease in gross margin
was due to a larger contribution of general merchandise sales as a
percentage of total net revenues and a decline in revenue from
third-party merchants. The quarter-over-quarter increase in gross
margin was due to strong gross margin contribution from books and
media products.
Fulfillment expenses, which include warehousing,
shipping and customer service expenses, were RMB207.6 million ($32.7
million), representing 8.8% of total net revenues, compared
to 10.1% in the corresponding period in 2014 and 8.9% in the second
quarter of 2015. The year-over-year and quarter-over-quarter
decreases in fulfilment expenses as a percentage of total net
revenues were primarily due to improved operational efficiency.
Marketing expenses were RMB64.7
million ($10.2 million),
representing 2.7% of total net revenues, compared to 5.5% in the
corresponding period in 2014 and 3.2% in the second quarter of
2015. The year-over-year and quarter-over-quarter decreases in
marketing expenses as a percentage of total net revenues were the
result of lower expenditures on advertisements and online marketing
programs during the quarter.
Technology and content expenses were RMB61.8 million ($9.7
million), representing 2.6% of total net revenues, compared
to 2.8% in the corresponding
period in 2014 and 2.6% in the second quarter of 2015. The
year-over-year decrease in technology and content expenses as a
percentage of total net revenues was primarily due to operating
leverage.
General and administrative expenses were RMB46.0 million ($7.2
million), representing 1.9% of total net revenues, compared
to 2.0% in the corresponding period in 2014 and 2.1% in the second
quarter of 2015. 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.
Government grants and value-added tax refunds were
RMB7.0 million ($1.1 million) representing 0.3% of total net
revenues, compared to 2.2% in the corresponding period in 2014 and
0.1% in the second quarter of 2015. The year-over-year decrease as
a percentage of total net revenues was primarily due to a limited
amount of government grants and tax refunds.
Share-based compensation expenses, which were allocated
to related expense line items, were RMB2.0
million ($0.3 million) in the
third quarter of 2015, compared to RMB2.1
million in the corresponding period in 2014,representing a
6.8% decrease.
Dangdang recorded an operating loss of RMB3.3 million ($0.5
million) in the third quarter of 2015, compared to operating
income of RMB13.1 million in the
corresponding period in 2014.
Operating loss excluding share-based compensation
expenses (non-GAAP) was RMB1.3
million ($0.2 million),
compared to operating income excluding share-based compensation
(non-GAAP) of RMB15.2 million in the
corresponding period in 2014.
Other expense, net was RMB38.0
million ($6.0 million),
compared to RMB2.2 million in the
corresponding period in 2014. The year-over-year increase was
largely attributable to RMB43.4
million in foreign exchange loss associated with the
significant depreciation of the Chinese RMB against the US dollar
during the third quarter in 2015.
Net loss was RMB28.1
million ($4.4 million),
compared to net income of RMB24.5
million in the corresponding period in 2014.
Net loss excluding share-based compensation expenses
(non-GAAP) was RMB26.2 million
($4.1 million), compared to net
income excluding share-based compensation (non-GAAP) of
RMB26.7 million in the corresponding
period in 2014.
Net margin was negative 1.2%, compared to 1.3% in the
corresponding period in 2014. Non-GAAP net margin was
negative 1.1%, compared to a non-GAAP net margin of 1.4% in the
corresponding period in 2014.
Diluted loss per ADS was RMB0.35 ($0.05),
compared to diluted earnings per ADS of RMB0.29 in the corresponding period in
2014.
As of September 30, 2015, Dangdang
had cash and cash equivalents, restricted cash, short-term time
deposits, held-to-maturity investments and available for sale
investments of RMB1,686.8 million
($265.4 million), compared to
RMB1,399.0 million as of December 31, 2014. As of September 30, 2015, Dangdang had no bank
loans.
Capital expenditures for the third quarter of 2015 were
RMB14.4 million ($2.3 million).
Conference Call
The Company will not host an earnings conference call. Please
reach out to the Investor Relations contacts listed below with any
questions.
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.
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"), the Company uses 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 and adjusted EBITDA (collectively referred to
as the "Non-GAAP Financial Measures" hereafter). The Company
defines non-GAAP operating (loss) income, non-GAAP operating
margin, non-GAAP net (loss) income and non-GAAP net margin
as operating (loss) income, operating margin, net (loss)
income and net margin excluding the impact of share-based
compensation expenses, respectively. The Company defines adjusted
EBITDA as (loss) income before interest, taxes, depreciation,
amortization, other non-operating income and share-based
compensation expenses. The Company reviews the Non-GAAP Financial
Measures together with operating (loss) income, operating margin,
net (loss) income and net margin to obtain a better
understanding of its operating performance. The Company
believes 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 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 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 income (loss), operating
margin and net income (loss)" and "Adjusted EBITDA" at the end of
this release.
Investor Contacts:
Ye Ji
Investor Relations
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
Email: 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,
2014
|
|
As of
September 30,
2015
|
|
RMB
|
|
RMB
|
US$
|
|
(Audited)
|
|
(Unaudited)
|
(Unaudited)
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
350,946
|
|
234,744
|
36,935
|
Restricted
cash
|
23,726
|
|
-
|
-
|
Time
deposits
|
674,363
|
|
806,746
|
126,935
|
Held-to-maturity
investments
|
350,000
|
|
203,000
|
31,940
|
Available for sale
investments
|
-
|
|
442,358
|
69,601
|
Inventories
|
2,201,170
|
|
2,098,700
|
330,213
|
Accounts receivable,
net
|
28,763
|
|
39,831
|
6,267
|
Prepaid expenses and
other current assets
|
575,646
|
|
612,888
|
96,433
|
Amounts due from
related parties
|
375
|
|
1,717
|
270
|
Total current
assets
|
4,204,989
|
|
4,439,984
|
698,594
|
|
|
|
|
|
Equity method
investments
|
-
|
|
1,558
|
245
|
Fixed assets,
net
|
252,966
|
|
242,449
|
38,147
|
Prepaid land lease
payments
|
42,423
|
|
41,753
|
6,569
|
Prepaid expenses,
deposits
|
14,589
|
|
17,057
|
2,684
|
Other non-current
assets
|
-
|
|
20,507
|
3,227
|
Total
assets
|
4,514,967
|
|
4,763,308
|
749,466
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts and notes
payable
|
2,479,314
|
|
3,192,337
|
502,287
|
Deferred
revenue
|
627,122
|
|
332,915
|
52,381
|
Accrued expenses and
other current liabilities
|
704,483
|
|
576,152
|
90,653
|
Amounts due to
related parties
|
2,237
|
|
1,755
|
276
|
Total current
liabilities
|
3,813,156
|
|
4,103,159
|
645,597
|
Non-current
liablities
|
24,227
|
|
27,107
|
4,265
|
Total
liabilities
|
3,837,383
|
|
4,130,266
|
649,862
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Class A common shares
(par value of US$0.0001 per share; 686,505,790 shares authorized;
272,092,590 and 272,790,435 shares issued and outstanding as of
December 31, 2014 and September 30, 2015, respectively)
|
201
|
|
201
|
32
|
Class B common shares
(par value of US$0.0001 per share; 313,494,210 shares authorized;
131,876,660 shares issued and outstanding)
|
103
|
|
103
|
16
|
Additional paid-in
capital
|
1,885,878
|
|
1,892,535
|
297,774
|
Accumulated other
comprehensive loss
|
(129,948)
|
|
(71,638)
|
(11,272)
|
Accumulated
deficit
|
(1,078,650)
|
|
(1,188,159)
|
(186,946)
|
Total
shareholders' equity
|
677,584
|
|
633,042
|
99,604
|
Total liabilities
and shareholders' equity
|
4,514,967
|
|
4,763,308
|
749,466
|
|
|
|
|
|
E-Commerce China
Dangdang Inc.
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
|
(In thousands,
except share related data)
|
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2014
|
|
September 30,
2015
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
Net
revenues
|
|
|
|
|
Product
revenue
|
1,850,662
|
|
2,307,710
|
363,099
|
Media
|
1,252,250
|
|
1,418,516
|
223,192
|
General merchandise
|
598,412
|
|
889,194
|
139,907
|
Other
revenue
|
83,877
|
|
64,235
|
10,106
|
|
|
|
|
|
Total net
revenues
|
1,934,539
|
|
2,371,945
|
373,205
|
|
|
|
|
|
Cost of
revenues
|
(1,568,827)
|
|
(2,002,078)
|
(315,010)
|
|
|
|
|
|
Gross
profit
|
365,712
|
|
369,867
|
58,195
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Fulfillment
|
(195,290)
|
|
(207,620)
|
(32,667)
|
Marketing
|
(106,625)
|
|
(64,665)
|
(10,174)
|
Technology and
content
|
(53,619)
|
|
(61,786)
|
(9,723)
|
General and
administrative
|
(39,549)
|
|
(46,029)
|
(7,242)
|
Government
grants and value-added tax refunds
|
42,468
|
|
6,965
|
1,096
|
|
|
|
|
|
Total operating
expenses, net
|
(352,615)
|
|
(373,135)
|
(58,710)
|
|
|
|
|
|
Income (loss) from
operations
|
13,097
|
|
(3,268)
|
(515)
|
|
|
|
|
|
Interest
income
|
13,645
|
|
13,149
|
2,069
|
|
|
|
|
|
Other expenses,
net
|
(2,200)
|
|
(38,022)
|
(5,982)
|
|
|
|
|
|
Income (loss) before
income taxes
|
24,542
|
|
(28,141)
|
(4,428)
|
|
|
|
|
|
Income tax
expense
|
-
|
|
-
|
-
|
|
|
|
|
|
Net income
(loss)
|
24,542
|
|
(28,141)
|
(4,428)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
24,542
|
|
(28,141)
|
(4,428)
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
- Basic
|
0.06
|
|
(0.07)
|
(0.01)
|
- Diluted
|
0.06
|
|
(0.07)
|
(0.01)
|
|
|
|
|
|
Income (loss) per
ADS:
|
|
|
|
|
- Basic
|
0.30
|
|
(0.35)
|
(0.05)
|
- Diluted
|
0.29
|
|
(0.35)
|
(0.05)
|
|
|
|
|
|
Income (loss)
allocated to common shareholders used in income (loss) per
share/ADS calculation:
|
|
|
|
|
- Diluted
|
24,542
|
|
(28,141)
|
(4,428)
|
Shares used in income
(loss) per common share computation:
|
|
|
|
|
|
|
|
|
|
Class A common
shares:
|
|
|
|
|
- Basic
|
271,729,455
|
|
272,716,974
|
272,716,974
|
- Diluted
|
417,283,285
|
|
404,593,634
|
404,593,634
|
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
(loss) per ADS calculation:
|
|
|
|
|
- Basic
|
80,721,223
|
|
80,918,727
|
80,918,727
|
- Diluted
|
83,456,657
|
|
80,918,727
|
80,918,727
|
|
|
|
|
|
Other comprehensive
(loss) income
|
|
|
|
|
Foreign
currency translation adjustment, net of taxes
|
(76)
|
|
58,716
|
9,239
|
Unrealized
gain on available-for-sale investments, net of taxes
|
-
|
|
909
|
143
|
Transferred to
statements of comprehensive income (loss) of realized gain on
available-for-sale investments, net of taxes
|
(1,493)
|
|
(1,759)
|
(277)
|
|
|
|
|
|
Comprehensive income
attributable to common shareholders
|
22,973
|
|
29,725
|
4,677
|
|
|
|
|
|
Share-based
compensation
|
|
Share-based
compensation expenses included are as follows:
|
|
|
|
(In thousands, except
share related data)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2014
|
|
September 30,
2015
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Fulfillment
|
532
|
|
379
|
60
|
Marketing
|
117
|
|
153
|
24
|
Technology and
content
|
272
|
|
263
|
41
|
General and
administrative
|
1,197
|
|
1,179
|
186
|
Total
|
2,118
|
|
1,974
|
311
|
|
|
|
|
|
|
|
|
|
|
(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 US$ are made at a
rate of RMB6.3556 to US$1.00, the noon buying rate on September 30,
2015 in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of New
York.
|
|
|
|
|
|
(2) Each ADS
represents five common shares of the Company.
|
Non-GAAP operating
income (loss), operating margin and net income
(loss)
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2014
|
|
September 30,
2015
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
Income (loss) from
operations
|
13,097
|
|
(3,268)
|
(515)
|
Share-based
compensation expenses
|
2,118
|
|
1,974
|
311
|
Non-GAAP operating
income (loss)
|
15,215
|
|
(1,294)
|
(204)
|
|
|
|
|
|
Operating
margin
|
0.7%
|
|
-0.2%
|
-0.2%
|
Share-based
compensation expenses
|
0.1%
|
|
0.1%
|
0.1%
|
Non-GAAP operating
margin
|
0.8%
|
|
-0.1%
|
-0.1%
|
|
|
|
|
|
Net income
(loss)
|
24,542
|
|
(28,141)
|
(4,428)
|
Share-based
compensation expenses
|
2,118
|
|
1,974
|
311
|
Non-GAAP net income
(loss)
|
26,660
|
|
(26,167)
|
(4,117)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2014
|
|
September 30,
2015
|
|
RMB
|
|
RMB
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
Income (loss) from
operations
|
13,097
|
|
(3,268)
|
(515)
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
13,947
|
|
14,858
|
2,338
|
|
|
|
|
|
Share-based
compensation expenses
|
2,118
|
|
1,974
|
311
|
|
|
|
|
|
Adjusted
EBITDA
|
29,162
|
|
13,564
|
2,134
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dangdang-announces-unaudited-third-quarter-2015-results-300183834.html
SOURCE E-Commerce China Dangdang Inc.