Marbridge Daily

<- April 24, 2012 -> Q1 2012 Profit Down 25% YoY

Hong Kong Exchange and Clearings, 4/23/12

Chinese B2B e-commerce company (1688.HK) has announced its unaudited financial results for the first quarter ended March 31, 2012, with total revenue down 4.2% QoQ and up 3.7% YoY to RMB 1.59 bln.

Profit attributable to equity owners declined 12.1% QoQ and 25.0% YoY to RMB 339.2 mln.

Revenue from the international marketplace decreased 3.1% QoQ and remained flat YoY at RMB 916.2 mln, mainly as a result of a lower paying membership base.

Revenue from the China marketplace was RMB 545.4 mln in the period, up 5.9% YoY, but down 7.4% QoQ. The year-over-year growth was primarily due to a surge in revenue from value-added services. The decrease quarter-on-quarter was due to lower membership base as well as the effect of Chinese New Year holidays during which the usage of value-added services was lower.

Other revenue, mainly comprised of revenue from HiChina, was RMB 127.5 mln in the period, up 20.2% YoY and 2.7% QoQ.

Total registered users rose 22.7% YoY to reach 79.79 mln, with international registered users up 38.2% YoY to 27.34 mln and domestic registered users up 15.7% YoY to reach 52.44 mln. Total storefronts rose 16.6% YoY to reach 10.31 mln, with 2.35 mln in the international marketplace, up 32.5% YoY, and 7.96 mln in the China marketplace, up 12.6% YoY.

The total number of paying members at the end of Q1 2012 was 753,955, down 9.4% YoY, with the number of China Gold Supplier memberships down 24.8% YoY to reach 87,544, and the number of Global Gold Supplier memberships down 20.0% YoY to 7,641. China TrustPass memberships also declined, down 6.8% YoY to 658,770.

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