E COMMERCE CHINA DANGDANG INC (ADR) 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 201 201 32
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)
Class B common shares (par value of 103 103 17
US$0.0001 per share; 313,494,210 shares
authorized; 131,876,660 shares issued and
outstanding as of December 31, 2013 and
December 31, 2014)
Additional paid-in capital 1,871,095 1,885,878 303,948
Accumulated other comprehensive loss (134,939) (129,948) (20,944)
Accumulated deficit (1,166,767) (1,078,650) (173,847)
---------- ----------
Total shareholders' equity 569,693 677,584 109,206
------- ------- -------
Total liabilities and shareholders' equity 3,634,457 4,482,501 722,448
========= ========= =======
E-Commerce China Dangdang Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except share related data)
Three Months Ended
December 31, December 31, December 31,
2013 2014 2014
---- ---- ----
RMB RMB US$
(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 21,660 32,799 5,286
shareholders
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 (11,940) (7,810) (1,259)
of taxes
Comprehensive income attributable to 9,720 24,989 4,027
common shareholders
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, September 30,
2014 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 - (1,493)
realized gain on available-for-sale investments, net of taxes
---
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, September 30,
2014 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 Adjusted Change
Announced Amount
Amount
------
(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.
