Dangdang Realizes Profitability, Denies Acquisition Rumors

Shenzhen Special Zone Daily, 5/31/09

Li Guoqing, co-president of Chinese online retailer Dangdang, has announced that the site has achieved sustainable profitability. Dangdang achieved single month and single quarter profitability in December 2007, and Q4 2008 respectively. From March 2009, the company reached complete profitability, with an average gross profit margin of 20% and net profit margin of 3%. Li revealed that Dangdang sold over a million different product lines online, and has expanded from its origins as an online bookstore to include digital, parenting and furniture products.

Li also denied recent rumors that the company would be acquired, saying that currently Dangdang was valued at a minimum of USD 1 bln and was still experiencing rapid growth. Li stated that for the next three years he would not consider selling the company.

Keywords: B2C e-commerce M&A Dangdang Internet Li Guoqing margin profit

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