E-Commerce China Dangdang Inc. (NASDAQ:DANG)

BEIJING, Sept. 12, 2016 /PRNewswire/ -- E-Commerce China Dangdang Inc. (DANG) (the "Company" or "Dangdang"), a leading business-to-consumer e-commerce company in China, today announced that the Company's shareholders voted in favor of, among others, the proposal to authorize and approve (i) the previously announced agreement and plan of merger (the "merger agreement") dated May 28, 2016 by and among Dangdang Holding Company Limited ("Parent"), Dangdang Merger Company Limited ("Merger Sub") and the Company, pursuant to which Merger Sub will be merged with and into the Company with the Company continuing as the surviving company and a wholly-owned subsidiary of Parent after the merger (the "merger"), (ii) the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands, substantially in the form attached to the merger agreement (the "plan of merger"), and (iii) the transactions contemplated by the merger agreement, including the merger.

Approximately 97.7% of the voting rights of the shares voting in person or by proxy were voted in favor of the proposal to authorize and approve the merger agreement, plan of merger and the transactions contemplated by the merger agreement, including the merger. A two-thirds majority of the voting power represented by the shares of the Company present and voting in person or by proxy at the extraordinary general meeting was required for approving the merger.

The parties currently expect to complete the merger as soon as practicable, subject to the satisfaction or waiver of the conditions set forth in the merger agreement. Upon completion of the merger, the Company will become a privately held company and its American depositary shares will no longer be listed on the New York Stock Exchange.

BEIJING, May 31, 2016 /PRNewswire/ -- E-Commerce China Dangdang Inc. (NYSE: DANG) (the "Company" or "Dangdang"), a leading business-to-consumer e-commerce company in China, today announced that on May 28, 2016, it entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with Dangdang Holding Company Limited ("Parent") and Dangdang Merger Company Limited ("Merger Sub"), a wholly-owned subsidiary of Parent.

Pursuant to the Merger Agreement, Parent will acquire the Company for cash consideration of US$1.34 per Class A common share or Class B common share of the Company (each, a "Share") or US$6.70 per American depositary share of the Company ("ADS"), each ADS representing five Class A Shares of the Company, in a transaction valuing the Company at approximately US$556 million on a fully diluted basis. This amount represents a premium of 2.9% over the Company's closing price of US$6.51 per ADS on July 8, 2015, the last trading day prior to July 9, 2015, the date that the Company announced it had received a "going-private" proposal, and a premium of 10.49% and 7.32% to the volume-weighted average closing price of the Company's ADSs during the 20 and 30 trading days prior to the date of this press release, respectively.

Immediately following the consummation of the merger, Parent will be beneficially owned by Ms. Peggy Yu Yu, chairwoman of the board of directors of the Company ("Ms. Yu"), Mr. Guoqing Li, director and chief executive officer of the Company ("Mr. Li", and together with Ms. Yu and certain of their affiliates, the "Buyer Group"), and certain other members of the management of the Company who have elected to roll over certain Shares beneficially owned by them, including Mr. Danqian Yao, senior vice president of the Company ("Mr. Yao"), Mr. Lijun Chen, vice president of the Company ("Mr. Chen"), and Mr. Min Kan, vice president of the Company ("Mr. Kan", and together with the Buyer Group, Mr. Yao and Mr. Chen, the "Rollover Shareholders").

As of the date of the Merger Agreement, the Rollover Shareholders beneficially owned in the aggregate approximately 33% of the outstanding Shares, representing approximately 83% of the total voting power of the outstanding Shares (without taking into account any outstanding options granted pursuant to the Company's share incentive plans).

Subject to the terms and conditions of the Merger Agreement, at the effective time of the merger, Merger Sub will merge with and into the Company, with the Company continuing as the surviving company and a wholly-owned subsidiary of Parent, and each of the Shares (including Shares represented by ADSs) issued and outstanding immediately prior to the effective time of the merger will be canceled and cease to exist in exchange for the right to receive US$1.34 per Share or US$6.70 per ADS, in each case, in cash, without interest, except for (i) certain Shares (including Shares represented by ADSs) beneficially owned by the Rollover Shareholders, (ii) Shares held by Parent, the Company or any of their subsidiaries, (iii) Shares (including Shares represented by ADSs) held by the depositary of the Company's ADS program and reserved for future issuance pursuant to the Company's share incentive plans, and (iv) Shares owned by holders who have validly exercised and not effectively withdrawn or lost their rights to dissent from the merger pursuant to Section 238 of the Companies Law of the Cayman Islands, which Shares will be canceled at the effective time of the merger for the right to receive the fair value of such Shares determined in accordance with the provisions of Section 238 of the Companies Law of the Cayman Islands. If completed, the merger will result in the Company becoming a privately-held company and its ADSs will no longer be listed on The New York Stock Exchange.

The Company's board of directors, acting upon the unanimous recommendation of the special committee formed by the board of directors (the "Special Committee"), approved the Merger Agreement and the merger, and resolved to recommend that the Company's shareholders vote to authorize and approve the Merger Agreement and the merger. The Special Committee, which is composed solely of independent directors of the Company who are unaffiliated with Parent, Merger Sub or any member of the Buyer Group or management of the Company, exclusively negotiated the terms of the Merger Agreement with the Buyer Group with the assistance of its independent financial and legal advisors.

The merger, which is currently expected to close during the second half of 2016, is subject to various closing conditions, including a condition that the Merger Agreement be authorized and approved by an affirmative vote of shareholders representing at least two-thirds of the Shares present and voting in person or by proxy as a single class at an extraordinary general meeting of the Company's shareholders.

Concurrently with the execution of the Merger Agreement, members of the Buyer Group entered into a support agreement, pursuant to which members of the Buyer Group have agreed to vote all the Shares and ADSs beneficially owned by them in favor of the authorization and approval of the Merger Agreement and the merger. As of the date of this press release, the Buyer Group beneficially owns Shares representing approximately 83% of the total voting power of the outstanding Shares (without taking into account any outstanding options granted pursuant to the Company's share incentive plans).

The Buyer Group intends to fund the merger through a combination of (i) rollover financing from the Rollover Shareholders of 136,477,925 Shares (including Shares represented by ADSs), (ii) the proceeds from a committed loan facility in an amount of up to US$164 million arranged by Bank of China Limited, Shanghai Pudong Development Zone Sub-Branch, pursuant to a debt commitment letter, and (iii) available cash of the Company and its subsidiaries.

The Company and certain other participants in the transactions will prepare and file with the U.S. Securities and Exchange Commission (the "SEC") a Schedule 13E-3 transaction statement, which will include a proxy statement of the Company. The Schedule 13E-3 will include a description of the Merger Agreement and contain other important information about the merger, the Company and the other participants in the merger.

Duff & Phelps (Duff & Phelps, LLC and Duff & Phelps Securities, LLC) is serving as the financial advisor to the Special Committee, Shearman & Sterling LLP is serving as U.S. legal counsel to the Special Committee, and Maples and Calder is serving as Cayman Islands legal counsel to the Special Committee.

China Renaissance Partners is serving as the financial advisor to the Buyer Group, Skadden, Arps, Slate, Meagher & Flom is serving as U.S. legal counsel to the Buyer Group, and Walkers is serving as Cayman Islands legal counsel to the Buyer Group.

BEIJING, May 17, 2016 /PRNewswire/ -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (DANG), a leading business-to-consumer e-commerce company in China, today announced that the board of directors of the Company (the "Board") has received a non-binding proposal, dated May 17, 2016, from Ms. Peggy Yu Yu, Chairwoman of the Board, and Mr. Guoqing Li, Chief Executive Officer and director of the Company (together, the "Buyer Group"), to acquire all of the outstanding shares of the Company not already owned by the Buyer Group at US$6.50 per American depositary share ("ADS", each ADS representing five Class A common share) or US$1.30 per common share in cash, subject to certain conditions. A copy of the proposal letter is attached hereto as Exhibit A.

The special committee of the Board (the "Special Committee"), formed to consider the original proposal by the Buyer Group, dated July 9, 2015, is evaluating this revised proposal with the assistance of its financial and legal advisors. The Special Committee cautions the Company's shareholders and others considering trading in the Company's securities that no decision has been made by the Special Committee or the Board with respect to the revised proposal. There can be no assurance that any definitive offer will be made, any agreement will be executed or that this or any other transaction will be approved or consummated.

BEIJING, April 7, 2016 /PRNewswire/ -- iMeigu Capital Management Ltd. ("iMeigu") , Jiangsu Huaxi Group Co., Ltd ("Huaxi Group"), announce that have formed a consortium ("Consortium") for the preliminary non-binding proposal ("Proposal") , which iMeigu has submitted on March 9, to acquire all of the outstanding Class A common shares ("Class A Shares"), Class B common Shares ("Class B Shares", together with Class A Shares, the "Shares") and American depositary shares ("ADSs",each representing five Class A Share) of E-Commerce China Dangdang Inc (NYSE: DANG, the"Company") in an all-cash transaction for US$8.8 per ADS or US$1.76 per Share.

Under the Proposal, the Consortium will acquire all the outstanding Shares and ADSs of the Company in cash for US$8.8 per ADS or US$1.76 per Share (the "Transaction"). It represents a highly attractive premium of approximately 12.6% to the previous preliminary non-binding proposal from Ms. Peggy Yu Yu, Chairwoman of the Board, and Mr. Guoqing Li, director and Chief Executive Officer of the Company (together, the " Insider Buyer ") dated July 9, 2015, to acquire all of the outstanding ordinary shares of the Company not already beneficially owned by the Insider Buyer for $7.812 in cash per ADS.

The Consortium has engaged O'Melveny & Myers LLP as its international legal counsel and East & Concord Partners as its PRC legal counsel.

As the Consortium has previously stated, the Proposal does, and the Transaction will, provide superior value to the Company's shareholders as compared with the Insider Buyer's proposal. The Consortium recognizes that the Company's Board of Directors has formed a special committee to evaluate the Insider Buyer's proposal and the Consortium is positioned to negotiate and complete the acquisition in a timely manner. While The Consortium is fully prepared to pursue the Transaction upon the terms and subject to the conditions set forth herein, The Consortium is open-minded and flexible with respect to the potential structure of the Transaction to expedite the process of delivering value to the Company's shareholders, including working with other parties, such as Ms. Peggy Yu Yu and Mr. Guoqing Li, through forming a buyer group with them to implement a "going-private" transaction.

The Proposal is Non-binding and subject to further negotiation of definitive agreements and the satisfaction of customary closing conditions, including regulatory approvals.

BEIJING, March 9, 2016 /PRNewswire/ -- iMeigu Capital Management Ltd. ("iMeigu") , announces that today has submitted a preliminary non-binding proposal ("Proposal") to acquire all of the outstanding Class A common shares ("Class A Shares"), Class B common Shares ("Class B Shares", together with Class A Shares, the "Shares") and American depositary shares ("ADSs", each representing five Class A Share) of E-Commerce China Dangdang Inc (NYSE: DANG, the"Company") in an all-cash transaction for US$8.8 per ADS or US$1.76 per Share.

Under the Proposal, iMeigu will acquire all the outstanding Shares and ADSs of the Company in cash for US$8.8 per ADS or US$1.76 per Share (the "Transaction"). It represents a highly attractive premium of approximately 12.6% to the previous preliminary non-binding proposal from Ms. Peggy Yu Yu, Chairwoman of the Board, and Mr. Guoqing Li, director and Chief Executive Officer of the Company (together, the " Insider Buyer ") dated July 9, 2015, to acquire all of the outstanding ordinary shares of the Company not already beneficially owned by the Insider Buyer for $7.812 in cash per ADS.

iMeigu will  form an acquisition company for the purpose of implementing the Transaction and fund it from its shareholders, investors, partners and banks. Further more, iMeigu has engaged O'Melveny & Myers LLP as its international legal counsel and East & Concord Partners as its PRC legal counsel.

As iMeigu has previously stated, the Proposal does, and the Transaction will, provide superior value to the Company's shareholders as compared with the Insider Buyer's proposal. iMeigu recognize that the Company's Board of Directors has formed a special committee to evaluate the Insider Buyer's proposal and iMeigu is positioned to negotiate and complete the acquisition in a timely manner. While iMeigu is fully prepared to pursue the Transaction upon the terms and subject to the conditions set forth herein, iMeigu is open-minded and flexible with respect to the potential structure of the Transaction to expedite the process of delivering value to the Company's shareholders, including working with other parties, such as Ms. Peggy Yu Yu and Mr. Guoqing Li, through forming a buyer group with them to implement a "going-private" transaction.

The Proposal is Non-binding and subject to further negotiation of definitive agreements and the satisfaction of customary closing conditions, including regulatory approvals. This letter is governed by, and construed in accordance with the laws of Cayman Islands.

• 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.
• Diluted loss per ADS was RMB0.35 ($0.05), compared to diluted earnings per ADS of RMB0.29 in the corresponding period in 2014. 

"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.   

Second Quarter 2015 Financial Results

• Dangdang's total net revenues in the second quarter of 2015 were RMB2,312.3 million ($373.0 million), a 29.8% increase from the corresponding period in 2014.
• Diluted loss per ADS was RMB0.26 ($0.04), compared to diluted earnings per ADS of RMB0.35 in the corresponding period in 2014. 

"During the second quarter of 2015, we achieved another quarter of steady growth in revenue and new and active customers. We expanded our leading position in China's books and media market, gained additional share in the baby, children and maternity destination category and continued to enjoy some of the highest conversion rates in the industry," said Ms. Peggy Yu Yu, Executive Chairwoman of Dangdang.

"Mobile orders remained close to record levels at 40% of total orders, and we improved monetization of our mobile platform with a sharp increase in mobile advertising revenue. Our digital business is gaining momentum, driven by our growing catalog of e-books, including original content. Although we incurred a loss for the quarter, we generated RMB77.6 million in operating cash flow and closed the quarter with RMB1.7 billion in cash and equivalents. We remain focused on the future healthy development of our business," Ms. Peggy Yu Yu concluded.

BEIJING, July 13, 2015 /PRNewswire/ -- E-Commerce China Dangdang Inc. (NYSE: DANG) (the "Company" or "Dangdang"), a leading business-to-consumer e-commerce company in China, today announced that its board of directors (the "Board") has formed a special committee consisting of three independent, disinterested directors, Ms. Ruby Rong Lu, Mr. Ke Zhang and Mr. Xiaolong Li, to consider the non-binding "going private" proposal that the Board received on July 9, 2015. Ms. Ruby Rong Lu will chair the special committee. The special committee intends to retain independent legal and financial advisors in due course, to assist it in this process.

As previously announced, the Board received a preliminary non-binding proposal letter, dated July 9, 2015, from Ms. Peggy Yu Yu, Chairwoman of the Board of Directors of the Company, and her spouse, Mr. Guoqing Li, Chief Executive Officer and director of the Company, to acquire all of the outstanding common shares of the Company not beneficially owned by them or their affiliates, including Class A common shares represented by American depositary shares ("ADSs," each representing five Class A common shares), for $7.812 per ADS in cash, or $1.5624 per Class A common share.

The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

BEIJING, July 9, 2015 /PRNewswire/ -- E-Commerce China Dangdang Inc. (NYSE: DANG) (the "Company"), a leading business-to-consumer e-commerce company in China, today announced that that its Board of Directors (the "Board") has received a non-binding proposal letter, dated July 9, 2015, from Ms. Peggy Yu Yu, Chairwoman of the Board, and Mr. Guoqing Li, director and Chief Executive Officer of the Company (together, the "Buyer Group"), proposing a "going-private" transaction (the "Transaction") to acquire all of the outstanding ordinary shares of the Company not already beneficially owned by the Buyer Group for $7.812 in cash per American depositary share ("ADS"), each representing five common shares. The proposed purchase price represents a premium of 20% to the closing trading price of the Company's ADS on July 8th, 2015, the last trading day prior to the date hereof.

The Buyer Group currently beneficially owns approximately 35.9% of all the issued and outstanding common shares of the Company, which represent approximately 83.5% of the aggregate voting power of the Company.

According to the proposal letter, the Buyer Group intends to fund the consideration payable in the Transaction with a combination of debt and/or equity capital, and rollover equity in the Company. A copy of the proposal letter is attached as Annex A to this press release.

The Board intends to form a special committee comprised of independent and disinterested directors and will authorize the special committee to retain legal and financial advisors to assist it in evaluating the Transaction.

The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

First Quarter 2015 Financial Results

• Total net revenues for the first quarter of 2015 were RMB2,217.3 million ($357.7 million), a 27.7% increase from the corresponding period in 2014.
• Diluted loss per ADS was RMB0.74 ($0.12), compared to diluted earnings per ADS of RMB0.02 in the corresponding period in 2014.

"Dangdang successfully delivered on our guidance for the quarter, achieving strong top line growth. We further entrenched Dangdang as the market leader in China's books and media market. Although we posted a loss for the quarter, it was primarily the result of marketing and technology initiatives and expenditures related to e-books, mobile and content that we believe set the stage for the future healthy development of our business," said Ms. Peggy Yu Yu, Executive Chairwoman of Dangdang.

"Our investments in mobile Dangdang resulted in mobile orders reaching a record 41% of total orders, driven by significant growth in new and active users and higher conversion rates. We are making good progress in the digital reading market, offering more content and achieving rapid growth in e-book downloads and monthly active users. We are confident our current expenditures will yield positive returns to Dangdang and our shareholders in the future," Ms. Peggy Yu Yu concluded.

Outlook for Second Quarter 2015

Dangdang expects total net revenues in the second quarter of 2015 to be approximately RMB2.3 billion, representing year-over-year growth of approximately 30%. The Company also expects GMV from its marketplace to grow at a rate of 32% year-over-year to approximately RMB1.9 billion in the second quarter of 2015. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

Fourth Quarter 2014 Financial 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.
• Non-GAAP diluted earnings per ADS was RMB0.42 ($0.07), compared to RMB0.30 in the corresponding period in 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.

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.

Third Quarter 2014 Financial Results

• Net Income for the third quarter of 2014 was RMB24.5 million ($4.0 million), representing 1.2% of total net revenues, as compared with a net loss of RMB27.9 million in the third quarter of 2013 representing negative 1.8% of total net revenues.
• Non-GAAP diluted earnings per ADS was RMB0.32 ($0.05), as compared to a non-GAAP diluted loss per ADS of RMB0.31 in the corresponding period in 2013.

"Dangdang delivered another quarter of sustainable growth and posted our fourth consecutive quarter of profitability. Healthy gross margin, combined with our larger scale and more efficient operations, allowed us to increase profit margin while making a significant investment in marketing and branding. We made a strong marketing push for mobile Dangdang during the quarter with positive results. Mobile orders accounted for 24% of total orders during the quarter, and we expect to see continued growth in mobile orders," said Ms. Peggy Yu Yu, Executive Chairwoman of Dangdang.

"Today's e-commerce consumers are looking for a vibrant, fun and personalized online shopping experience. Dangdang's integrated online shopping experience with prominent categories delivers all of this and more. With more than 15 years' of e-commerce expertise, we know how to build customer loyalty, attract new customers at a reasonable cost and we will continue to enhance the customer experience. We intend to better monetize our mobile platform and further develop our marketplace and principal business focusing on our newer destination categories including fashion and apparel, baby and maternity, home and lifestyle. Armed with a strong balance sheet and solid financial condition, we are confident in our future success," Ms. Peggy Yu Yu concluded.

Outlook for Fourth Quarter 2014

Dangdang expects total net revenues in the fourth quarter of 2014 to be approximately RMB2.5 billion, representing year-over-year growth of around 27%. The Company also expects GMV from its marketplace to grow at a rate of 60% year-over-year to approximately RMB2.23 billion in the fourth quarter of 2014. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

Second Quarter 2014 Financial Results

• Total net revenue up 31.3% year-over-year and marketplace GMV up 81.6% year-over-year
• Non-GAAP diluted earnings per ADS was RMB0.38 ($0.06), as compared to a non-GAAP diluted loss per ADS of RMB0.76 in the corresponding period in 2013.

"Dangdang reported another successful quarter, achieving strong top line growth, higher gross margin, and a third consecutive quarter of profitability. Our excellent execution allowed us to expand profit margin, while investing for our future growth and enhancing the customer experience. We will continue to develop our business in a healthy manner and expect to drive future growth through our marketplace and principal business with a strong emphasis on our destination categories." said Ms. Peggy Yu Yu, Executive Chairwoman of Dangdang.

"We continue to make good progress in transforming Dangdang well beyond an online bookstore. In building an integrated shopping mall with destination categories, more customers are buying apparel, baby and maternity and other products from Dangdang. Additionally, we made strong headway in mobile Dangdang this quarter. Mobile orders were 17% of total orders for the second quarter 2014 and this rose to 22% in June. We expect mobile orders to increase throughout the year."

"China's E-commerce industry has long-term substantial growth potential and is immensely competitive. Dangdang will lead E-commerce development in China. We have a good balance of profitable product lines and fast growing younger categories. Our growth is based on tens of millions of satisfied customers. We manage our technology platform, supply chain and marketing efforts very efficiently. Dangdang enjoys an optimal category structure. Backed by a strong financial condition and balance sheet, I am confident our superior operations management will deliver strong results," Ms. Peggy Yu Yu concluded.

Outlook for Third Quarter 2014

Dangdang expects total net revenues in the third quarter of 2014 to be approximately RMB 1,983.6 million, representing year-over-year growth of around 30.0%. The Company also expects GMV from its marketplace to grow at a rate of 80.0% year-over-year to approximately RMB1,745.4 million in the third quarter of 2014. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

First Quarter 2014 Financial Results

• Total net revenues for the first quarter of 2014 was RMB1,735.8 million ($279.2 million), a 30.1% increase from the corresponding period in 2013. Media product revenue for the first quarter of 2014 was RMB1,151.7 million ($185.3 million), representing a 33.3% increase from the corresponding period in 2013.
• (Loss) income per ADS: Basic and Diluted was RMB(0.91) vs last years same quarter of RMB0.02. 

"Dangdang continued its path to profitability in the first quarter of 2014. We began the year on a positive note, achieving strong top line year-over-year growth, the highest gross margin since the second quarter of 2011 and a second consecutive quarter of profitability," said Ms. Peggy Yu Yu, Executive Chairwoman of E-Commerce China Dangdang.

"We continue to make good progress in transforming Dangdang from an online bookstore into an integrated online shopping mall with prominent destination categories. Combined general merchandise sales of RMB1.7 billion from both principal business and marketplace surpassed books and media for the sixth consecutive quarter, growing at a rate of 71% year-over-year. Books and media revenue grew 33% year-over-year. Fashion and apparel accounted for nearly half of marketplace GMV and continued to outpace the growth of the overall marketplace."

"Going forward, we remain committed to the healthy and sustainable growth of our business. We will continue to drive growth through both the marketplace and our principal business with a strong emphasis on our destination categories," Ms. Yu Yu concluded.

Outlook for Second Quarter 2014

Dangdang expects total net revenues in the second quarter of 2014 to be around RMB1,942 million, representing year-over-year growth of around 30%. The Company also expects GMV from its marketplace to grow at a rate of 80% year-over-year in the second quarter of 2014. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

BEIJING, March 5, 2014 /PRNewswire/ -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced that Mr. Jun Zou, the chief financial officer of the Company, has tendered his resignation for personal reasons. His resignation will be effective on April 10, 2014. The Company has started searching for qualified CFO candidates. Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman, will act as interim CFO during the search period until the new CFO is on board. Ms. Peggy Yu Yu is Dangdang's co-founder and has been Executive Chairwoman since the inception of the Company. Peggy received an MBA in finance and international business from the Stern School of New York University in 1992.  "We thank Mr. Jun Zou for his many efforts and contribution, and we all wish him the best in his future pursuits," said Ms. Peggy Yu Yu.

BEIJING, March 5, 2014 /PRNewswire/ -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced that it has entered into a strategic partnership with Yhd.com, whereby each company launches a flagship channel on the other's platform. Yhd.com is a leading business- to-consumer e-commerce platform for food, beverages and imported food products in China and is majority owned by Wal-Mart Stores, Inc.

Pursuant to the partnership, Dangdang opens a bookstore on Yhd.com, making its books and media merchandise available to Yhd.com's customers, while Yhd.com opens a supermarket on the Dangdang marketplace. Both of these new stores offer the same products, pricing, logistics and customer service available on each company's own official website. 

Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman, commented, "By partnering with Yhd.com, our customers now have access to a broader selection of grocery and food items from one of China's leading online grocery stores. At the same time, Yhd.com can now provide its customers an extensive selection of books and media products from Dangdang, a name they know and trust. Utilizing strong category advantage is a meaningful way for both companies to enrich selection to their respective customers."

Fourth Quarter 2013 Financial Results

• Dangdang's total net revenues in the fourth quarter of 2013 were RMB1,971.9 million ($325.7 million), a 22.1% increase from the corresponding period in 2012.
• (Loss) income per common share: basic and diluted was RMB0.05 vs. last years RMB(0.30).

Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman, commented, "Dangdang returned to profitability in the fourth quarter of 2013. This reflects our commitment to improve our financial performance and solid execution of our strategies to transform Dangdang from an online bookstore into an integrated online shopping mall targeting mid-to high-end consumers."

"In 2014, we plan to drive growth in general merchandise through both our third-party marketplace and principal business, where we sell products in selected categories from our own inventory. We will devote considerable resources to developing our destination categories while seeking to aggressively expand our share in the books and media market. We remain focused on the healthy development of our business and will employ a disciplined approach to improve our financial condition and performance."

"In the fourth quarter, we achieved better than expected revenue growth and returned to profitability. Sales in our destination categories outpaced those of the overall marketplace. Gross margin remained stable, and we enjoyed operating leverage. We generated RMB273 million in operating cash flow in 2013 and closed the year with no bank loans. I am delighted to see our financial performance keep improving," commented Jun Zou, Dangdang's Chief Financial Officer.

Outlook for First Quarter 2014

Dangdang expects total net revenue in the first quarter of 2014 to be around RMB1,734 million, representing year-over-year growth of around 30%, which has taken into account the impact of the new tax circular as described in "Recent Developments" below. The Company also expects GMV from its marketplace to grow at a rate of 100% year-over-year in the first quarter of 2014. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

Third Quarter 2013 Financial Results

• Dangdang's total net revenues in the third quarter of 2013 were RMB1,525.9 million ($249.3 million), a 19% increase from the corresponding period in 2012.
• Loss per ADS basic and diluted was ($0.06) vs. last years loss of ($0.21).

Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman commented, "This quarter, we made a meaningful improvement to our bottom line by moving certain lower-margin general merchandise from self-procurement to the marketplace and achieving better operating efficiency. While this impacted our topline growth, the end result was an increase in gross margin and the best bottom line performance since the second quarter of 2011."

"We continued to enjoy our leadership position in the online books and media sector. At the same time, we adjusted our self-procurement categories to further improve gross profit. Dangdang's marketplace program exceeded our expectations this quarter, with marketplace GMV growing 184% year-over-year. We are closer to achieving our goal of transforming Dangdang from an online bookstore into an integrated online shopping mall targeting mid-to-high end customers. Going forward, we plan to better utilize our customer base by developing strategies to tap into their purchasing power through cross-category sales and enhancements to the overall customer experience. In the near term, we will seek to balance revenue growth and bottom line performance."

"We achieved solid revenue growth and year-over-year gross margin expansion of 240 basis points. Further improvement to fulfillment and operating leverage helped reduce our net loss to RMB27.9 million, or a negative 1.8% of total net revenues, which is the best performance since the second quarter of 2011," said Mr. Jun Zou, Dangdang's Chief Financial Officer. "We generated positive operating cash flow of RMB158 million compared with negativeRMB106 million in the same period of last year. We remain focused on improving our financial performance by increasing our top line, expanding gross margin and identifying operational efficiencies with the goal of achieving profitability in the near future."

Outlook for Fourth Quarter 2013

Dangdang expects total net revenue in the fourth quarter of 2013 to be around RMB1,937.8 million, representing year-over-year growth of around 20%. The Company also expects GMV from its marketplace to grow at a rate of 150% year-over-year in the fourth quarter of 2013. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

BEIJING, Oct. 21, 2013 /PRNewswire/ -- E-Commerce China Dangdang Inc. ("Dangdang" or "the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced preliminary selected unaudited financial results for the third fiscal quarter ended September 30, 2013.   

For the third quarter of 2013, Dangdang currently estimates that its total net revenue would be in the range of RMB 1,520 million to RMB 1,530 million, instead of the previously forecasted amount of around RMB 1,584 million. This change from the previous forecast was primarily due to the Company's decision to reduce sales of certain lower margin products and focus more on bottom line performance. Dangdang estimates that its gross margin would be in the range of 17.5% ~17.7%, as compared to 15.2% in the corresponding period in 2012 and 17.1% in the second quarter of 2013. The estimated net loss would be in the range of RMB 27.0 to RMB 29.0 million, as compared with losses of RMB 100.1 million and RMB 63.9 million in the third quarter of 2012 and second quarter of 2013, respectively. 

"Although our estimated third-quarter revenue is below our previous forecast, we believe the business was better served by focusing on bottom line performance. By improving our category selection and reducing some low margin general merchandise, we were able to achieve higher gross margin," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman. "We are optimistic about our future prospects as we continue to transform our company from an online bookstore into an integrated online shopping mall targeting mid- to high-end customers."

Additional information for the third-quarter will be available when Dangdang reports its quarterly results in November 2013, at which time management will discuss the Company's financials in more detail. The Company will issue a press release announcing the details of its third-quarter conference call closer to the date.

Second Quarter 2013 Financial Results

• Total net revenues in the second quarter of 2013 were RMB1,493.5 million ($243.3 million), a 24% increase from the corresponding period in 2012.
• Gross profit was RMB 255,671 (US)$41,658 vs. last years RMB 157,835
• Loss per ADS: Basic and Diluted was RMB (0.80) US(0.13) or last years loss of RMB (1.53)

Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman commented, "We delivered another quarter of strong performance, marked by solid growth in sales, healthy margin expansion and further growth in our customer base, all of which contributed to our best bottom line performance since the third quarter of 2011. Making a significant investment in marketing and branding while successfully improving our bottom line performance is an important achievement for us."

"Books and media sales grew 22% this quarter, allowing us to maintain our dominant market share in the online media sector. Dangdang's marketplace program once again demonstrated outstanding growth momentum, as marketplace GMV grew 178% year-over-year in the second quarter. Sales from general merchandise, which include both self-procurement and marketplace, exceeded sales from books and media for the third consecutive quarter. We are on track in transforming our company from an online bookstore into an integrated online shopping mall targeting mid- to high-end customers. Going forward, we plan to better utilize our customer base by developing strategies to tap into their purchasing power through cross-category sales and enhancements to the overall customer experience. We are encouraged by our financial performance thus far and are committed to further improvement throughout the year."

"In addition to strong sales growth, we saw a significant improvement in gross margin, which rose 400 basis points to 17.1% on a year-over-year basis. With operating leverage, particularly more efficient fulfillment and inventory management, our net loss narrowed to RMB63.9 million, or a negative 4.3% of total net revenues, which is the best performance since the third quarter of 2011," said Mr. Jun Zou, Dangdang's Chief Financial Officer. "In addition, our efforts in working capital management contributed to positive operating cash flow ofRMB46.8 million compared with negative RMB19.3 million in the same period last year."

Outlook for Third Quarter 2013

Dangdang expects total net revenue in the third quarter of 2013 to be around RMB 1,584 million, representing year-over-year growth of around 23%. The Company also expects GMV from its marketplace to grow at a rate of 165% year-over-year in the third quarter of 2013. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

First Quarter 2013 Financial Results

• Net revenues in the first quarter of 2013 were RMB1,333.8 million ($214.7 million), a 23% increase from the corresponding period in 2012.
• Net loss excluding share-based compensation expenses (non-GAAP) was RMB70.1 million ($11.3 million), as compared with a net loss excluding share-based compensation expenses (non-GAAP) of RMB96.7 million in the corresponding period in 2012.

"We are pleased to report another quarter of solid financial and operational results with better than expected sales, highest gross margin since the second quarter of 2011, and better operating efficiency," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman. "Books and media sales grew by 24% in this quarter, which allows us to maintain dominant market share in online media sector. Dangdang's marketplace program once again demonstrated outstanding growth momentum, as marketplace GMV grew at 193% year-over-year in the first quarter. Sales from general merchandise, which include both self-procurement and marketplace, exceeded sales from books and media for the second consecutive quarter."

"We are confident that Dangdang's transition from online bookstore to an integrated online shopping mall is well under way. Our strategy of placing more emphasis on third party marketplace continues in 2013. Going forward, we will undertake more business initiatives to drive marketplace growth, bringing in more merchants and providing more fulfilment support to them, and to ensure that Dangdang customers enjoy rich selections, competitive pricing and seamless shopping experience," Ms. Yu continued.

"We are pleased with the strengthening financial results in the first quarter, making it a robust start of the fiscal year. As we continued to grow sales and drive operational efficiencies, our gross margin increased to 17.2%, an improvement of 300 basispoints over the same period last year. Our net loss narrowed to RMB72.7 million, or negative 5.5% of total net revenues, representing improving margin for the third quarter in row," said Mr. Jun Zou, Dangdang's Chief Financial Officer. "Likewise, cash flow from operations increased by 51% year-over-year, mainly due to better working capital management."

Outlook for Second Quarter 2013

Dangdang expects total net revenue in the second quarter of 2013 to be around RMB1.6 billion representing year-over-year growth of around 23%. We also expect GMV from our marketplace to grow at a rate of 175% year-over-year in the second quarter of 2013. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

BEIJING, October 29, 2012 /PRNewswire/ -- E-Commerce China Dangdang Inc. ("Dangdang") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced the appointment of Jun Zou as chief financial officer of Dangdang, effective October 29, 2012.

"We are pleased to welcome Mr. Zou to our senior management team at Dangdang," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman. "Mr Zou is an experienced financial executive who brings over 18 years of corporate finance and management experience. We look forward to drawing upon Mr. Zou's vast operational and financial expertise as we continue to lead China's growing e-commerce industry."

About Jun Zou

Prior to joining Dangdang, Mr. Jun Zou has been chief financial officer and principal accounting officer for Xunlei Ltd., a leading Chinese internet platform. From 2009 to 2010, he served as the chief financial officer, treasurer, board secretary, and VP of Strategy for NASDAQ-listed China BAK Battery Inc.. Mr. Zou served as the chief financial officer of GCL Silicon in Hong Kong in 2008. From 2006 to 2008, he was the chief financial officer for the global technical services business unit and head of global customer financing and treasury at Huawei Technologies, a Fortune 500 technology company in China. From 1999 to 2006, Mr. Zou served in progressive managerial roles in treasury, customer finance, strategic planning and eventually global controller for the managed services business unit at Ericsson in the United Statesand Sweden. Earlier in his career, he worked for several top American. and Japanese banks in Chinaand the United States. Mr. Zou received a master's degree in business administration from the University of Texas in 1999 and a bachelor's degree in international business and economics from Shanghai International Studies University in 1993.

Second Quarter Highlights

• Total net revenues in the second quarter of 2012 were RMB1,207.8 million ($190.1 million), a 53% increase from the corresponding period in 2011.
• Media revenue for the second quarter of 2012 was RMB771.9 million ($121.5 million), an increase of 32% from the corresponding period in 2011.
• General merchandise revenue for the second quarter of 2012 was RMB402.5 million ($63.4 million), an increase of 110% from the corresponding period in 2011, representing 33% of total net revenues, compared to 24% in the corresponding period in 2011.
• Net loss per share was $0.24 vs. a loss of $0.05 in prior year.

"We are pleased to report the solid result of the second quarter. In a fiercely competitive environment, we achieved 53% year-over-year growth in net revenues and reached a gross margin at 13%. General merchandise contributed 33% of total revenues in the second quarter compared with 24% in the same period in 2011. Other revenue, composed mainly of revenue from third-party merchants, increased 122% year-over-year and 69% quarter-over-quarter, reflecting the strong growth momentum of our marketplace program," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman. "We have a disciplined way of dealing with this competitive environment. We planned and timed our recent product promotions to take place in different periods of the quarter and benefit our customers, and we maintained our pricing in the leading position of the China e-commerce market," Ms. Yu added.

"We increased investment in fulfilment in the second quarter, and implemented next-day-delivery services in 150 cities, delivery-in-evening services in 10 cities and same-day-delivery in 20 cities as part of our ongoing efforts to improve customer services," commented Mr. Guoqing Li, Chief Executive Officer. "Dangdang launched the e-reader named "Dangdang Doucon" in early July, which was also welcomed by our customers. China's e-book market is still at an early stage, and we are still in the phase of forming new customer reading habits."

Outlook for Third Quarter 2012

Dangdang expects its total net revenues in the third quarter of 2012 to be around RMB1,272 million, representing year-over-year growth of around 40%. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

BEIJING, June 29, 2012 /PRNewswire-Asia/ -- E-Commerce China Dangdang Inc. ("Dangdang") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced the entry into an agreement that gives Dangdang the exclusive right to operate a book and media channel on Tencent's QQ Buy platform. Tencent Holdings Limited ("Tencent") (SEHK 00700) is a leading provider of Internet and mobile and telecommunications value-added services in China.

Pursuant to the agreement, Dangdang will operate a bookstore channel on QQ Buy, making its books and media merchandise available to the users of Tencent. The newly launched bookstore channel will feature Dangdang's complete product selection of 790,000 stock-keeping units (SKUs) for books and media products. Dangdang will commit to nation-wide fulfillment and delivery as well as customer service.

First Quarter Highlights

• Total net revenues in the first quarter of 2012 were RMB1,083.6 million ($172.1 million), a 58% increase from the corresponding period in 2011.
• Media revenue for the first quarter of 2012 was RMB696.0 million ($110.5 million), an increase of 35% from the corresponding period in 2011.
• General merchandise revenue for the first quarter of 2012 was RMB367.9 million ($58.4 million), an increase of 124% from the corresponding period in 2011, representing 34% of total net revenues, compared to 24% in the corresponding period in 2011.
• Net loss for second quarter 2012 was $0.24 vs a loss of $0.05 in prior year quarter

"We continue to build our position as one of the leading e-commerce companies in China. In the first quarter, we managed to grow revenues by 58% year-over-year in a soft consumer market environment in China, which compares favorably with the 53% year-over-year growth rate during the first quarter of 2011. Media revenue performed particularly well in the first quarter with an accelerated quarterly sequential growth rate, which gives us a sustainable market share and clear leadership in the category with which we first established the Dangdang brand," said Ms.Peggy Yu Yu, Dangdang's Executive Chairwoman. "Based on our insight of this coming trend, we planned our strategic category mapping from 2011. Dangdang's business strategy is proving resilient in the current phase of competition, which is concentrated in several vertical categories, particularly in the apparel, digital and electronics categories, in which we have limited exposure and plan to expand through marketplace. Meanwhile, we have made significant progress in strategic cooperation on Dangdang marketplace with a number of leading brands operating in the more competitive product categories. We believe that this rational growth strategy will further build our core business strengths and competencies," Ms. Yu added.

"We achieved new efficiencies in our new customer acquisition strategy, adding 1.9 million new customers in the first quarter while only spending 2.7% of net revenues on marketing. We increased investment in fulfilment in the first quarter, implemented next-day-delivery services in 140 cities and maintained our high service levels during the Chinese New Year holiday," commented Mr. Guoqing Li, Chief Executive Officer.

Outlook for Second Quarter 2012

Dangdang expects its total net revenues in the second quarter of 2012 to be around RMB1186 million, representing year-over-year growth of around 50%. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

BEIJING, April 16, 2012 /PRNewswire-Asia/ -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced that Conor Chia-huang Yang, the chief financial officer of the Company, has tendered his resignation for personal reasons. Conor will remain with the Company for a transition period up to three months. Meanwhile, the Company will commence searching for qualified CFO candidates soon.

"Conor has made an important contribution to Dangdang since he joined in March 2010. We thank him for his leadership and dedication to the company. We wish him all the best in his future endeavors," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman.

BEIJING, March 30, 2012 /PRNewswire-Asia/ -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced that it formed a strategic alliance with Gome Online and launched a B2B2C e-commerce platform in Dangdang's marketplace focusing on electronics and computers products. Gome Online is the online retail of Gome Electrical Appliances Holding Ltd., a leading Chinese electronics retailing brand.

In this joint undertaking, Gome Online will provide electronics, computers, and communication products selection, fulfilment, promotional arrangements and after-sales services to customers. Dangdang will not only make available its e-commerce platform and large customer base but also offer comprehensive supports leveraging on its longstanding technology, sales and marketing experience in the e-commerce industry in China.

"Given the scale and supply chain advantages of Gome Online in electronics and computers products, we are confident that this category expansion with competitively priced goods will greatly improve our customers' shopping experience. This strategic cooperation will bring about a win-win situation for Dangdang and Gome Online," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman.

Fourth Quarter and Fiscal Year 2011 Highlights

• Total net revenues in the fourth quarter of 2011 were RMB1,231.8 million ($195.7 million), a 73% increase from the corresponding period in 2010.
• General merchandise revenue for the fourth quarter of 2011 was RMB483.6 million ($76.8 million), an increase of 210% from the corresponding period in 2010, representing 39% of total revenues, compared to 22% in the corresponding period in 2010.
• Total net revenues in fiscal year 2011 were RMB3,619.0 million ($575.0 million), a 59% increase from 2010.
• General merchandise revenue in fiscal year 2011 was RMB1,094.1 million ($173.8 million), an increase of 179% from the corresponding period in 2010, representing 30% of total revenues, compared to 17% in 2010.

"I am pleased to report accelerated top line growth in the fourth quarter as compared with the first nine months of 2011. We managed to grow revenues in the fourth quarter and fiscal year by 73% and 59% year-over-year, respectively. In this highly competitive growth environment, we have full confidence that we can keep our accelerated growth momentum based on a well-managed, sustainable and differentiated strategy in 2012. Our new customer acquisition strategy was successful, bringing us 6.6 million new customers in 2011 while we maintained the new customer acquisition cost at a relatively low level," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman.

"We greatly widened our geographical presence with fulfilment centers in ten cities at the year-end of 2011, up from six cities at the end of 2010. We increased total warehouse capacity to 340,000 square meters from 180,000 square meters one year ago. Our well-paced and strategic expansion of warehouse locations not only meets the need of fulfilling the rapidly growing number of orders, but also allows us to provide better services to our customers," commented Mr. Guoqing Li, Chief Executive Officer. "Meanwhile, we attracted some well-known vertical business-to-consumer e-commerce companies and off-line brand companies to our marketplace, which will be one of the major focus areas of our growth strategy in 2012."

"During the fourth quarter we increased our marketing spending with an emphasis on our branding campaign. We are glad to see the positive impact on our momentum in new customer acquisition and top line growth. Operating expenses excluding marketing expenses have decreased as a percentage of revenue in the same period, reflecting the operating leverage of scaling the business," commented Conor Yang, Dangdang's Chief Financial Officer.

Outlook for First Quarter 2012

Dangdang expects its total net revenues in the first quarter of 2012 to be around RMB1, 100 million, representing year-over-year growth of around 60%. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

Third Quarter 2011 Results

• Total revenues in the third quarter of 2011 were RMB908.9 million ($142.5 million), a 50% increase from the corresponding period in 2010.
• Non-GAAP net loss was RMB71.1 million ($11.1 million), as compared with a net income excluding share-based compensation expenses (non-GAAP) of RMB37.2 million in the corresponding period in 2010.
• Non-GAAP EPS was a loss of $0.15

Second Quarter 2011 Results

BEIJING, June 29, 2011 /PRNewswire-Asia/ -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced the formation of a streamlined management structure with separate business units and changes in senior management.

The business units have been formed to better capture the growing market opportunities and address different product attributes. Reporting directly to Executive Chairwoman Ms. Peggy Yu Yu is the baby, children and maternity business unit. Reporting directly to Chief Executive Officer Mr. Guoqing Li are the business units of media, general merchandise, apparel, digital and electronics, and e-book.

Dangdang also announced the promotion of Ms. Yue Wang as Vice President in charge of the baby, children and maternity business unit. Ms. Wang, who joined Dangdang in 2000, was responsible for the children's book section of the media department and has led it to be the largest and fastest growing book category among media products. In addition, the Company also announced the resignation of Mr. Roger Huang due to personal reasons, which is effective as of the date of this announcement. Mr. Huang joined Dangdang in March 2010 as Chief Operating Officer and had been responsible for media and general merchandise sales.

"I am pleased to announce the promotion of Yue Wang to be the Vice President based on her outstanding contribution to our children's media business over the past 10 years. Her responsibilities will now comprise management of the newly combined portfolio of children's books and other children related products in her business unit, where synergies can come into play to execute our core business strategy of cross-selling products to our media customers," commented Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman. "We appreciate Roger's contribution to the Company during the past 15 months and wish him the best in his new endeavors."

BEIJING, June 17, 2011 /PRNewswire-Asia/ -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced that Ms. Peggy Yu Yu, Dangdang's co-founder and executive chairwoman and Mr. Guoqing Li, Dangdang's co-founder, director and chief executive officer, intend to use their personal funds to purchase up to an aggregate total of $2 million worth of the Company's American depositary shares ("ADSs") in open market transactions within the next six months.

"We have strong confidence in Dangdang's business and financials," said Ms. Peggy Yu Yu. "The Company is on track to execute its business plan and will continue to strengthen its leading position in media sector and to accelerate growth rate of its general merchandize business."

The share purchases will be made subject to applicable legal restrictions and other factors and in a manner consistent with Dangdang's securities trading policy and applicable securities laws.

To date, we have financed our operations primarily through investments from our shareholders and, beginning in 2009, cash flows from operations. We believe that our current cash and cash equivalents and our anticipated cash flows from operations will be sufficient to meet our anticipated working capital requirements and capital expenditures for the 12 months following our recent offering.

We believe that our current cash and cash equivalents, anticipated cash flow from operations and the proceeds from our initial public offering will be sufficient to meet our anticipated cash needs for the foreseeable future

First Quarter Results:

• Total net revenues in the first quarter of 2011 were RMB687.6 million ($105.0 million), a 53.4% increase from the corresponding period in 2010.
• General merchandise revenue in the first quarter of 2011 was RMB164.0 million ($25.1 million), a 161.6% increase from the corresponding period in 2010, representing 23.9% of total net revenues, compared to 14.0% in the corresponding period in 2010.
• Net income in the first quarter of 2011 was RMB3.1 million ($0.5 million), a 203.6% increase from the corresponding period in 2010.
• Adjusted EBITDA (Non-GAAP) in the first quarter of 2011 was RMB7.6 million ($1.2 million), a 27.7% increase from the corresponding period in 2010.

"I am pleased to report strong first quarter results. In a highly competitive environment we managed to grow revenues in the first quarter of 2011 by 53.4% year-over-year. General merchandise grew at an accelerated pace compared with last fiscal year. We continue to strengthen our market leadership in media and increase our market share in general merchandise in the first quarter of 2011," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman.

• Basic and diluted earnings per ADS were RMB0.04 ($0.01) and RMB0.04 ($0.01), respectively.

Dangdang expects its total net revenues in the second quarter of 2011 to be in the range of RMB779 million to RMB789 million, representing year-over-year growth in the range of 51% to 53%. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

Fourth Quarter Highlights:

• Dangdang's total net revenues in the fourth quarter of 2010 were RMB 710.9 million ($ 107.7 million), a 58.7% increase from the corresponding period in 2009.
• Operating profit was RMB 13.3 million ($ 2.0 million), representing a 35.0% decrease from the corresponding period in 2009, primarily due to the different promotion fee arrangements.
• Net income was RMB 14.8 million ($ 2.2 million), representing a 33.2% decrease from the corresponding period in 2009, primarily due to the different promotion fee arrangements.
• Basic and diluted earnings per ADS for the fourth quarter of 2010 amounted to $0.02 and $0.02, respectively.
• Adjusted EPS was $0.04 vs. $0.10

"I am pleased to report strong fourth quarter results. In a highly competitive environment we managed to grow revenues in the fourth quarter by 58.7% year-over-year, exceeding the revenue growth rate of the first nine-month period of 2010. Our strong brand recognition in China's E-commerce market, extensive selection and competitive pricing were the key drivers of the increase in top line growth as well as the number of active customers," said Ms. Peggy Yu Yu, Dangdang's Executive Chairwoman. "With a strong balance sheet following our initial public offering on the New York Stock Exchange on December 8, 2010, we are well positioned to continue our leadership position in this growing industry," Ms. Yu added.

Dangdang expects its total net revenues in the first quarter of 2011 to be in the range of $102.4 million to $103.6 million, representing year-over-year growth in the range of 50% to 52%. This forecast reflects Dangdang's current and preliminary view, which is subject to change.

E-Commerce China Dangdang plans for Initial Public Offering

Company Snapshot:

A leading business-to-consumer, or B2C, e-commerce company in China.

Industry Snapshot:

• China’s retail market has experienced substantial growth in recent years. According to Euromonitor International, total retail sales in China grew from RMB4.2 trillion (US$619.3 billion) in 2005 to RMB6.3 trillion (US$929.0 billion) in 2009, representing a CAGR of 10.7%. As China seeks to further increase domestic consumption, retail sales are projected to grow to RMB8.5 trillion (US$1.3 trillion) in 2013, according to Euromonitor International. 

• According to OpenBook Co., Ltd., a provider of information services for China’s book market, China’s book market (excluding newspapers, magazines and textbooks) grew from RMB23.4 billion (US$3.5 billion) in 2005 to RMB31.3 billion (US$4.6 billion) in 2009. The book retail market in China is fragmented. The majority of book retailers in China are individual book stores or local book store chains within a province or city. We believe the small scale of traditional book retailers limits consumer selection because it is difficult for these retailers to carry large inventories.

• China currently has the largest number of internet users in the world, according to International Data Corporation, or IDC, an independent market research firm. IDC estimates that the number of internet users in China will grow from 384.8 million in 2009 to 574.5 million in 2013. The increasing functionality, accessibility and overall usage of the internet have made it an increasingly popular medium for conducting commerce. According to iResearch, the number of B2C and consumer-to-consumer, or C2C, e-commerce users in China grew from 55 million in 2007 to 109 million in 2009, and the number is projected to grow to 245 million from 2009 to 2013, representing a CAGR of 22.4%. Driven by the increases in the number of users and purchase volume per online shopper, total B2C and C2C e-commerce transaction value in China is expected to increase at an even faster rate from RMB263 billion (US$38.8 billion) in 2009 to RMB1,269 billion (US$187.1 billion) in 2013, representing a CAGR of 48.2%. Approximately 46.0% of China’s internet population bought books and other media products online, which is the second-highest among all product categories in 2008. 

• China’s B2C e-commerce market is expected to grow at a faster rate than the overall e-commerce market in the coming years. iResearch estimates that total transaction value in the B2C e-commerce market (excluding B2C third-party merchant marketplace) will grow from RMB14.5 billion (US$2.1 billion) in 2009 to RMB201.2 billion (US$29.7 billion) in 2013, representing a CAGR of 93.0%. According to Euromonitor International, B2C e-commerce sales as a percentage of total retail sales in China was 0.2% in 2009. We believe that B2C e-commerce in China will increase as a percentage of total retail sales as it becomes more accepted and gradually overcomes key challenges in areas such as consumer preference, fulfillment, logistics and payment.

Use Of proceeds:

We plan to use the net proceeds we receive from this offering to broaden our product categories, expand our fulfillment capabilities and further enhance our technology infrastructure, and for general corporate purposes, including working capital and funding potential acquisitions of complementary businesses, although we are not currently negotiating any such transactions.

Underwriter:

• Credit Suisse
• Morgan Stanley
• Oppenheimer & Co.
• Piper Jaffray Cowen and Company 

Proposed offering price: $11.00 to $13.00

Post IPO Share Calculation: (Using a 68 to 1 Ordinary to ADS conversion ratio).

•     4,896,424: Pre IPO fully diluted share count used in EPS calculation.
•   17,000,000: Newly issued ADS shares (13,200,000 from company + 3,800,000 from current shareholders).
•    3,550,000: Over-allotments ADS shares (300,000 from company + 2,250,000 from current shareholders. 

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 68 to 1: 18,396,424

Financial Snapshot: (December Year)

2009 vs. 2008

• Revenues: $218.0 million vs $114.3 million
• Adjusted Net Income: $3.1 million vs. ($11.8) million

Nine Months 2010 vs 2009

• Revenues: 234.8 million vs. $150.7 million
• Adjusted Net Income: $1.4 million vs. ($360,000)

Pro Forma Valuation:using 12.00 price and new share count

• Trailing EPS (ADS): $0.19 (Fourth quarter is seasonally highest period).
• Trailing P/E: 63.2