Exhibit 99.1

 

Dangdang Announces Unaudited Second Quarter 2015 Results

 Active customers increased 15% and new customers rose 19% year-over-year in Q2

Mobile orders accounted for 40% of total orders in Q2

Beijing, China, August 31, 2015 -- E-Commerce China Dangdang Inc. ("Dangdang" or the "Company") (NYSE: DANG), a leading business-to-consumer e-commerce company in China, today announced its unaudited financial results for the second quarter ended June 30, 2015.

Second Quarter 2015 Highlights

· Total net revenues for the second quarter of 2015 were RMB2,312.3 million ($373.0 million), a 29.8% increase from the corresponding period in 2014. Gross Merchandise Value ("GMV") from the marketplace in the second quarter of 2015 was RMB1,890.6 million ($304.9 million), a 32.1% increase from the corresponding period in 2014. The combination of product revenue from principal business and GMV from the marketplace reached RMB4,130.3 million ($666.2 million) and grew 31.8% year-over-year.

· Dangdang had approximately 9.7 million active customers, including approximately 3.5 million new customers, in the second quarter of 2015, representing increases of 15% and 19%, respectively, from the corresponding period in 2014. Total orders for the second quarter of 2015 were approximately 19.5 million, a 19% increase from the corresponding period in 2014.

· Mobile orders accounted for 40% of total orders for the second quarter of 2015, compared to 17.0% for the corresponding period in 2014.

· Net loss for the second quarter of 2015 was RMB21.2 million ($3.4 million), or negative 0.9% of total net revenues, compared to net income of RMB28.8 million in the second quarter of 2014, or 1.6% of total net revenues.

"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.

Second Quarter 2015 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.

Media product revenue for the second quarter of 2015 was RMB1,391.8 million ($224.5 million), representing an 18.3% increase from the corresponding period in 2014. General merchandise revenue for the second quarter of 2015 was RMB847.8 million ($136.7 million), representing a 61.7% increase from the corresponding period in 2014. Other revenue including revenue from third-party merchants for the second quarter of 2015 was RMB72.7 million ($11.7 million), representing a 9.7% decrease from the corresponding period in 2014, primarily due to a decline in logistics revenue from third-party merchants.

Dangdang had approximately 9.7 million active customers, including approximately 3.5 million new customers, in the second quarter of 2015, representing increases of 15% and 19%, respectively, from the corresponding period in 2014. Total orders for the second quarter of 2015 were approximately 19.5 million, a 19% increase from the corresponding period in 2014.

Gross margin in the second quarter of 2015 was 14.8%, compared to 20.1% in the second quarter of 2014 and 15.2% in the first quarter of 2015. The year-over-year decrease in gross margin was due to a larger contribution of general merchandise sales as a percentage of total net revenues and a decline in logistics revenue from third-party merchants. The quarter-over-quarter decrease in gross margin was due to adjustments associated with customer loyalty programs.

Fulfillment expenses, which include warehousing, shipping and customer service expenses, were RMB204.7 million ($33.0 million), representing 8.9% of total net revenues, compared to 10.7% in the corresponding period in 2014 and 9.1% in the first quarter of 2015. The year-over-year and quarter-over-quarter decreases in fulfillment expenses as a percentage of total net revenues were primarily due to improved operational efficiency.

Marketing expenses were RMB74.6 million ($12.0 million), representing 3.2% of total net revenues, compared to 4.6% in the corresponding period in 2014 and 4.3% in the first quarter of 2015. The year-over-year and quarter-over-quarter decreases in marketing expenses as a percentage of total net revenues were the result of lower expenditures for advertisements and online marketing programs during the quarter.

Technology and content expenses were RMB59.9 million ($9.7 million), representing 2.6% of total net revenues, compared to 2.6% in the corresponding period in 2014 and 2.8% in the first quarter of 2015. The quarter-over-quarter decrease in technology and content expenses as a percentage of total net revenues was primarily due to operating leverage.

General and administrative expenses were RMB47.9 million ($7.7 million), representing 2.1% of total net revenues, compared to 2.3% in the corresponding period in 2014 and 2.3% in the first quarter of 2015. The year-over-year and quarter-over-quarter decreases in general and administrative expenses as a percentage of total net revenues were primarily due to larger scale.

Government grants and value-added tax refunds were RMB1.3 million ($0.2 million) representing 0.1% of total net revenues, compared to 0.9% in the corresponding period in 2014 and 0.0% in the first quarter of 2015. The year-over-year decrease as a percentage of total net revenues was primarily due to a limited amount of government grants and tax refunds.

Share-based compensation expenses, which were allocated to related expense line items, were RMB2.5 million ($0.4 million) in the second quarter of 2015, compared to RMB2.9 million in the corresponding period in 2014, representing a 14.7% decrease.

Dangdang recorded an operating loss of RMB42.7 million ($6.9 million) in the second quarter of 2015, compared to operating income of RMB14.6 million in the corresponding period in 2014.

Operating loss excluding share-based compensation expenses (non-GAAP) was RMB40.2 million ($6.5 million), compared to operating income excluding share-based compensation (non-GAAP) of RMB17.5 million in the corresponding period in 2014.

Net loss was RMB21.2 million ($3.4 million), compared to net income of RMB28.8 million in the corresponding period in 2014.

Net loss excluding share-based compensation expenses (non-GAAP) was RMB18.7 million ($3.0 million), compared to net income excluding share-based compensation (non-GAAP) of RMB31.7 million in the corresponding period in 2014.

Net margin was negative 0.9%, compared to 1.6% in the corresponding period in 2014. Non-GAAP net margin was negative 0.8%, compared to a non-GAAP net margin of 1.8% in 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.

As of June 30, 2015, Dangdang had cash and cash equivalents, restricted cash, short-term time deposits, held-to-maturity investments and available for sale investments of RMB1,706.7 million ($275.3 million), compared to RMB1,399.0 million as of December 31, 2014. As of June 30, 2015, Dangdang had no bank loans.

Capital expenditures for the second quarter of 2015 were RMB12.6 million ($2.0 million).

Receipt of Preliminary Non-binding "Going Private" Proposal

On July 9, 2015, the Company announced that its Board of Directors (the "Board") 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 8, 2015, the last trading day prior to the receipt of the non-binding proposal letter.

The Board has formed a special committee consisting of independent, disinterested directors to evaluate the Transaction. The special committee has retained Duff & Phelps (Duff & Phelps, LLC and Duff & Phelps Securities, LLC) as its financial advisor and Shearman & Sterling LLP as its United States legal counsel in connection with the review and evaluation of 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.

Conference Call

The Company will not host an earnings conference call. Please reach out to the Investor Relations contacts listed below with any questions.

About Dangdang

E-Commerce China Dangdang Inc. is a leading business-to-consumer e-commerce company in China. On its website dangdang.com and through mobile Dangdang, the Company offers books and media products as well as selected general merchandise products including fashion and apparel, baby, children and maternity and home and lifestyle products, among others. It also operates the dangdang.com marketplace program, which allows third-party merchants to sell their products alongside products sourced by the Company. Dangdang is transforming itself into an integrated online shopping experience with prominent destination categories. Dangdang's nationwide fulfilment and delivery capabilities, high-quality customer service support and scalable technology infrastructure enable it to provide a compelling online shopping experience to customers. For more information, please visit ir.dangdang.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Dangdang may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Dangdang's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dangdang's growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China's business-to-consumer e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese business-to-consumer e-commerce market; Chinese governmental policies relating to Dangdang's industry and general economic conditions in China. Further information regarding these and other risks is included in Dangdang's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. Dangdang does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Dangdang undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Dangdang's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company uses the following measures as non-GAAP financial measures: non-GAAP operating (loss) income, non-GAAP operating margin, non-GAAP net (loss) income, non-GAAP net margin and adjusted EBITDA (collectively referred to as the "Non-GAAP Financial Measures" hereafter). The Company defines non-GAAP operating (loss) income, non-GAAP operating margin, non-GAAP net (loss) income and non-GAAP net margin as operating (loss) income, operating margin, net (loss) income and net margin excluding the impact of share-based compensation expenses, respectively. The Company defines adjusted EBITDA as (loss) income before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses. The Company reviews the Non-GAAP Financial Measures together with operating (loss) income, operating margin, net (loss) income and net margin to obtain a better understanding of its operating performance. The Company believes that these Non-GAAP Financial Measures provide meaningful supplemental information regarding the Company's performance and liquidity. However, a limitation of using the Non-GAAP Financial Measures as an analytical tool is that they do not include all items that impact operating (loss) income, operating margin, net (loss) income and net margin for the period. In addition, because they are not calculated in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider the Non-GAAP Financial Measures in isolation from or as an alternative to operating (loss) income, operating margin, net (loss) income and net margin prepared in accordance with U.S. GAAP.

For information on the reconciliation between the Non-GAAP Financial Measures and the GAAP financial measures presented in accordance with U.S. GAAP for the periods presented, please see the tables captioned "Non-GAAP operating income (loss), operating margin and net income (loss)" and "Adjusted EBITDA" at the end of this release.

Investor Contacts:

Tony Hung
Senior Investor Relations Director
E-Commerce China Dangdang Inc. 
Phone: +86-10-5799-2301
E-mail: ir@dangdang.com

Elaine Ketchmere, CFA 
Compass Investor Relations
+1-310-528-3031 
Email: eketchmere@compass-ir.com 

- Financial Tables Follow –

E-Commerce China Dangdang Inc.  

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share related data)

	As of December 31, 2014			As of June 30, 2015
	RMB			RMB			US$
	(Audited)			(Unaudited)			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		350,946			978,352			157,799
Restricted cash		23,726			1,000			161
Time deposits		674,363			244,544			39,443
Held-to-maturity investments		350,000			201,000			32,419
Available for sale investments		-			281,759			45,445
Inventories		2,201,170			2,084,340			336,184
Accounts receivable, net		28,763			37,012			5,970
Prepaid expenses and other current assets		575,646			511,271			82,463
Amounts due from related parties		375			429			69
Total current assets		4,204,989			4,339,707			699,953
Fixed assets, net		252,966			250,403			40,388
Prepaid land lease payments		42,423			41,976			6,770
Prepaid expenses, deposits		14,589			17,580			2,835
Other non-current assets		-			20,507			3,308
Total assets		4,514,967			4,670,173			753,254
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and notes payable		2,479,314			3,078,377			496,512
Deferred revenue		627,122			334,674			53,980
Accrued expenses and other current liabilities		704,483			626,512			101,050
Amounts due to related parties		2,237			2,168			350
Total current liabilities		3,813,156			4,041,731			651,892
Non-current liabilities		24,227			27,104			4,372
Total liabilities		3,837,383			4,068,835			656,264
Shareholders' equity:
Class A common shares (par value of US$0.0001 per share; 686,505,790 shares authorized; 272,092,590 and 272,659,840 shares issued and outstanding as of December 31, 2014 and June 30, 2015, respectively)		201			201			32
Class B common shares (par value of US$0.0001 per share; 313,494,210 shares authorized; 131,876,660 shares issued and outstanding)		103			103			17
Additional paid-in capital		1,885,878			1,890,556			304,928
Accumulated other comprehensive loss		(129,948	)		(129,504	)		(20,887	)
Accumulated deficit		(1,078,650	)		(1,160,018	)		(187,100	)
Total shareholders' equity		677,584			601,338			96,990
Total liabilities and shareholders' equity		4,514,967			4,670,173			753,254

E-Commerce China Dangdang Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except share related data)        

	Three Months Ended
	June 30, 2014			June 30, 2015
	RMB			RMB			US$
	(Unaudited)			(Unaudited)			(Unaudited)
Net revenues
Product revenue		1,701,177			2,239,639			361,232
Media		1,176,871			1,391,811			224,486
General merchandise		524,306			847,828			136,746
Other revenue		80,477			72,701			11,726
Total net revenues		1,781,654			2,312,340			372,958
Cost of revenues		(1,423,084	)		(1,969,244	)		(317,620	)
Gross profit		358,570			343,096			55,338
Operating expenses:
Fulfillment		(189,779	)		(204,738	)		(33,022	)
Marketing		(81,543	)		(74,611	)		(12,034	)
Technology and content		(47,040	)		(59,885	)		(9,659	)
General and administrative		(41,594	)		(47,892	)		(7,725	)
Government grants and value-added tax refunds		15,980			1,343			217
Total operating expenses, net		(343,976	)		(385,783	)		(62,223	)
Income (loss) from operations		14,594			(42,687	)		(6,885	)
Interest income		10,426			14,112			2,276
Other expenses, net		3,801			7,376			1,190
Income (loss) before income taxes		28,821			(21,199	)		(3,419	)
Income tax expense		-			-			-
Net income (loss)		28,821			(21,199	)		(3,419	)
Net income (loss) attributable to common shareholders		28,821			(21,199	)		(3,419	)
Income (loss) per common share:
- Basic		0.07			(0.05	)		(0.01	)
- Diluted		0.07			(0.05	)		(0.01	)
Income (loss) per ADS:
- Basic		0.36			(0.26	)		(0.04	)
- Diluted		0.35			(0.26	)		(0.04	)
Income (loss) allocated to common shareholders used in income (loss) per share/ADS calculation:
- Basic		28,821			(21,199	)		(3,419	)
- Diluted		28,821			(21,199	)		(3,419	)
Shares used in income (loss) per common share computation:
Class A common shares:
- Basic		271,309,522			272,315,705			272,315,705
- Diluted		416,177,972			404,192,365			404,192,365
Class B common shares:
- Basic		131,876,660			131,876,660			131,876,660
- Diluted		131,876,660			131,876,660			131,876,660
ADSs used in income (loss) per ADS calculation:
- Basic		80,637,236			80,838,473			80,838,473
- Diluted		83,235,594			80,838,473			80,838,473
Other comprehensive income (loss)
Foreign currency translation adjustment, net of taxes		156			(6,812	)		(1,099	)
Unrealized gain on available-for-sale investments, net of taxes		978			1,759			284
Transferred to statements of comprehensive income (loss) of realized gain on available-for-sale investments, net of taxes		-			(1,004	)		(162	)
Comprehensive income (loss) attributable to common shareholders		29,955			(27,256	)		(4,396	)

Share-based compensation

Share-based compensation expenses included are as follows:

(In thousands, except share related data)        

	Three Months Ended
	June 30, 2014		June 30, 2015
	RMB		RMB		US$
	(Unaudited)		(Unaudited)		(Unaudited)
Operating expenses:
Fulfillment		436		623		100
Marketing		148		208		34
Technology and content		320		327		53
General and administrative		1,986		1,307		211
Total		2,890		2,465		398

(1) This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.2000 to US$1.00, the noon buying rate on June 30, 2015 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.

(2) Each ADS represents five common shares of the Company.

Non-GAAP operating income (loss), operating margin and net income (loss)

(In thousands)

	Three Months Ended
	June 30, 2014			June 30, 2015
	RMB			RMB			US$
		(Unaudited)			(Unaudited)			(Unaudited)
Income (loss) from operations		14,594			(42,687	)		(6,885	)
Share-based compensation expenses		2,890			2,465			398
Non-GAAP operating income (loss)		17,484			(40,222	)		(6,487	)
Operating margin		0.8	%		-1.8	%		-1.8	%
Share-based compensation expenses		0.2	%		0.1	%		0.1	%
Non-GAAP operating margin		1.0	%		-1.7	%		-1.7	%
Net income (loss)		28,821			(21,199	)		(3,419	)
Share-based compensation expenses		2,890			2,465			398
Non-GAAP net income (loss)		31,711			(18,734	)		(3,021	)

Adjusted EBITDA

(In thousands)

	Three Months Ended
	June 30, 2014		June 30, 2015
	RMB		RMB			US$
	(Unaudited)		(Unaudited)			(Unaudited)
Income (loss) from operations		14,594		(42,687	)		(6,885	)
Add back:
Depreciation and amortization		13,314		15,195			2,450
Share-based compensation expenses		2,890		2,465			398
Adjusted EBITDA		30,798		(25,027	)		(4,037	)