E-Commerce China Dangdang Q4 Profit Rises - Quick Facts

(RTTNews) - E-Commerce China Dangdang Inc. (DANG), business-to-consumer e-commerce company in China, reported that its net income attributable to common Shareholders for the fourth quarter ended December 31, 2014 was RMB32.8 million or $5.3 million, representing a 51.4% increase from RMB21.7 million in the corresponding period in 2013. Earnings per ADS was RMB0.39 or $0.06, compared to RMB0.26 in the corresponding period in 2013.

Net income, excluding share-based compensation expenses, was RMB35.0 million or $5.6 million, representing a 40.9% increase from RMB24.9 million in the corresponding period in 2013.Non-GAAP earnings per ADS was RMB0.42 or $0.07, compared to RMB0.30 in the corresponding period in 2013.

Total net revenues in the fourth quarter of 2014 were RMB 2.51 billion or $403.7 million, a 27.0% increase from the corresponding period in 2013.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share and revenues of $402.59 million for the fourth-quarter. Analysts' estimates typically exclude special items.

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.

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.