China's Dangdang.com Made Net Losses Of USD4.4 Million In Q2 2011

Chinese B2C e-commerce website Dangdang.com has released its financial report for the second quarter of 2011, stating that its operating revenue increased by 53.3% year-on-year to CNY790.8 million, which was about USD122.3 million; while its net losses also increased by 60% year-on-year to CNY28.4 million, which was about USD4.4 million.

The company said that during the reporting period, its operating revenue reached CNY790.8 million, an increase of 53.3% compared with the same period of last year. Of the total revenue, CNY584.2 million was from the sales media products, a year-on-year increase of 34.1%; CNY191.5 million was from daily commodities, a year-on-year increase of 151.9%; and CNY15.1 million was contributed by other products, a year-on-year increase of 288.9%.

Statistics provided by the website showed that its gross margin was 14.3%; the number of its active users was 4.6 million; and the number of its orders was about 9.2 million. At the same time, its operating costs in the second quarter of 2011 were CNY678.1 million, accounting for 85.7% of its total revenue; and its marketing expenses were CNY18 million, accounting for 2.3% of its revenue.

Dangdang.com reported net losses of CNY28.4 million in the second quarter, mainly because of the decline of gross margin. Its operating losses were CNY52.2 million.

By June 30, 2011, the value of cash, cash equivalents, short-term deposits, and held-to-maturity investments held by Dangdang.com was totaling CNY1.644 billion.

Dangdang.com also revealed its performance expectations for the third quarter, which is to achieve the total operating revenue of between CNY916 million and CNY928 million.