China’s Dangdang.com Lost CNY129.8 Million In Q4 2011

Chinese B2C e-commerce website Dangdang.com has published its unaudited financial results for the fourth quarter of 2011, stating that due to a gross profit decline and the increase of marketing expenses, it made net losses of CNY129.8 million during the reporting period.

According to the report, Dangdang.com’s net operating revenue in the fourth quarter reached CNY1.232 billion, a year-on-year increase of 73%. Of the total, media products contributed CNY720 million, a year-on-year increase of 33%; daily commodities contributed CNY484 million, a year-on-year increase of 210%; and operating revenue from other sectors was CNY28.7 million, a year-on-year increase of 111%.

During the fourth quarter of 2011, Dangdang.com’s operating costs were CNY1.103 billion, accounting for 89.5% of its operating revenue. Of the total, its warehousing and distribution expense was CNY155 million, accounting for 12.6% of its operating revenue; and its marketing expense was CNY68.7 million, accounting for 5.6% of its operating revenue.

Meanwhile, the number of Dangdang.com’s active users reached six million during the reporting period, an increase of 38% compared with the same period of previous year; and its order volume reached 12.7 million, an increase of 47% compared with the same period of previous year.

For the entire year of 2011, Dangdang.com saw net losses of CNY229 million. In addition, the company predicted that it will achieve net operating revenue of CNY1.1 billion, a year-on-year increase of about 60%, in the first quarter of 2012.