Recently, the electricity supplier website only product will be announced the 2014 second quarter (ended June 30) unaudited financial statements, in the number of active users and the total number of orders increased significantly, the company seven consecutive profitable quarter. Second quarter total net revenue grew 136.1%, to $ 829.4 million, the company’s net profit attributable to shareholders amounted to $ 26.4 million, an increase of 192.1%.
CD products will be chairman Shen Asia, said Le Bee Network and CD products will have a synergistic effect in the second quarter Le Bee Network has created two million orders, and to absorb the 1.3 million new active users.
However, with the Lynx, Jingdong, Dangdang and other opponents wins the sale market, the only product is also facing multi-market competition.
Active members and orders doubled
Compared with the loss of many burn electricity supplier companies, only the product will be a heterogeneous. Results showed that the only product in the second quarter total net revenues of $ 829.4 million, an increase of 136.1% over last year.
Figures show that only product “sale” mode is still attractive to consumers increased, the number of users and total orders showed strong activity: the number of active customers over last year’s 350 million grew 167.9% to 930 million, the number of orders by 11 million copies over the same period grew 138.4 percent to 26.3 million copies last year.
CD products will be chairman and chief executive officer, said Shen Asia, the number of active users and the total number of orders increased, mainly due to the brand only product will rise, companies continue to focus on optimizing and increasing brand PC and mobile platforms and product selection , as well as due to the acquisition of the music CD products will bee net.
In addition, the only product in the second quarter gross profit was $ 205.8 million, an increase of 149.0% over $ 82.6 million a year earlier. Gross margin reached 24.8%, higher than the 23.5% a year earlier. The second quarter net profit of $ 26.4 million, an increase of 192.1% over $ 9,000,000 a year earlier. The only product side said, gross profit and gross margin increase was mainly due to the scale of business improvement, so the bargaining power of suppliers increases, as well as due to the company’s market business achieved growth.
And early music bee net synergies now
Data in a number of beautiful rose sharply, the only product will appear operating profit by 21.5% qoq decline in the first quarter decreased $ 6.5 million, while net profit declined by 1% qoq. CD products will be CFO Yangdong Hao interview, said profit fell MoM music is influenced by bee network, currently still in the music bee net loss.
This year in February, the only product will spend $ 112.5 million acquisition of 75% stake in Le Bee Bee Network Music Network was at a loss.
After the acquisition of Le Bee Network, have stationed executives access disk, CD products will be in charge of Beijing Zhang Jing as Le Bee Network CEO, gradually replaced in the financial, human sector and accelerate the integration of both sides. June of this year, the music changes to the original mall bee network platform model, the formal transition for Sale plus mall model.
While these actions did not make the music bee net losses quickly, the only product will sink Asia chairman, said Le Bee Network and CD products will have a synergistic effect, the first quarter net contribution to music bee revenue of less than 5%, while the second quarter contributed 1.3 million quarterly active users and 2 million orders.
Electricity supplier analyst Licheng Dong told reporters that although Le Bee Network smaller, but cosmetics electricity provider for consumer users only product will be speaking with a highly complementary role; Orient popular media resources, the only product brands have obvious role. These two benefits from the active user growth can be reflected. In addition, sale model is still attractive enough, after conversion mode, an increase of Le Bee is also worth the wait.
Sale model is facing competition
CD products will be so much attention, mainly because the stocks in the market to create a “crazy.” March 23, 2012, set up three and a half limited sale only product will be landing the NYSE website, the issue price of $ 6.5. This had been dubbed “bloody listed” companies in the two years to create a frenzied counterattack. According to yesterday’s closing price of $ 218, more than two years of time has gone up 33 times the current market value of about $ 12.1 billion, ranked fourth in the Chinese Internet market capitalization rankings, behind Tencent, Baidu and Jingdong. Single stocks is beyond Baidu, becoming the highest price in almost shares.
CD products will be CFO Yangdong Hao told reporters that the only product will continue to expand the storage area, storage area by the end of 2016 will reach 700,000 square meters. The only product is expected to total net revenues for the third quarter of 2014 from 850 million to 860 million U.S. dollars, an increase of 122-124% over last year.
Windsor Capital Partners Jane Yi told reporters analysis, “we believe that through the sale mode, only the product will have completed the user and the brand’s high water, the end of the high-speed growth, started to enter the platform growing stage. Capital markets will also its gradual transition from qualitative analysis to quantitative analysis, is expected to take only product will harvest strategy, the use of the brand and the user has accumulated expansion of high-margin categories, enhanced profitability, good profit targets. ”
But reporters found that the only product sale mode is facing strong competition. May 7, Dangdang online sale Fossil apparel line channel “Last Collection,” May 20, Jingdong Mall launched the “flash group” business; the 1st Mall launched the “Famous Sale” Lynx are cultivating “brand sale . ”
CD products will be able to continue in the field of creation in the sale madness? Licheng Dong believes that 2014 Chinese online shoppers are more than 310 million, the only product currently active users reached 9,000,000, there are still nearly three times the size of the user space. Discount stores like the line will persist as the face of corporate entities to digest inventory needs and demands of consumers seeking special brand, the electricity supplier is still much room for development sale mode.
For the competitive pressure from Jingdong, Lynx, and Licheng Dong believes that the establishment of the earlier CD products will establish a certain competitive threshold. As can be seen from the earnings, gross margin in the only product will continue to grow, mainly due to the purchase of the scale of the company’s enhanced bargaining power with suppliers enhancement, followed by the buyers differences on resources and logistics with professional advantage, business model within a certain time enough to be shaken.
