0001104659-13-063747.txt : 20130814 0001104659-13-063747.hdr.sgml : 20130814 20130814110508 ACCESSION NUMBER: 0001104659-13-063747 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130814 FILED AS OF DATE: 20130814 DATE AS OF CHANGE: 20130814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Mecox Lane Ltd CENTRAL INDEX KEY: 0001501775 STANDARD INDUSTRIAL CLASSIFICATION: APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34904 FILM NUMBER: 131035807 BUSINESS ADDRESS: STREET 1: 22ND FLOOR, GEMS TOWER STREET 2: BUILDING 20, NO. 487, TIANLIN ROAD CITY: SHANGHAI STATE: F4 ZIP: 200233 BUSINESS PHONE: (86-21) 6495 0500 MAIL ADDRESS: STREET 1: 22ND FLOOR, GEMS TOWER STREET 2: BUILDING 20, NO. 487, TIANLIN ROAD CITY: SHANGHAI STATE: F4 ZIP: 200233 6-K 1 a13-18655_16k.htm 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2013

 


 

Commission File Number: 001-34904

 


 

MECOX LANE LIMITED

 

22nd Floor, Gems Tower, Building 20

No. 487, Tianlin Road

Shanghai 200233

People’s Republic of China

(86-21) 6495 0500

 (Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F      x         Form 40-F      o       

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes      o   No       x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

 

82-        N/A

 

 

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

MECOX LANE LIMITED

 

 

 

 

 

 

 

By:

/s/ Paul Bang Zhang

 

Name:

Paul Bang Zhang

 

Title:

Chief Financial Officer

 

Date: August 14, 2013

 

2



 

EXHIBIT INDEX

 

 

 

Page

 

 

 

Exhibit 99.1 –Press Release

 

4

 

3


EX-99.1 2 a13-18655_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Mecox Lane Limited Announces Second Quarter 2013 Results

 

Gross Profit Margin Up 2.8% Year over Year to 37.2%

 

SHANGHAI, August 14, 2013 — Mecox Lane Limited (“Mecox Lane” or the “Company”) (NASDAQ: MCOX), a leading brand and multi-channel retailer of apparel and accessories in China, today announced its unaudited financial results for the second quarter ended June 30, 2013.

 

Second Quarter 2013 Highlights

 

·                  Net revenues decreased 44.1% year over year to $21.8 million, compared to $39.0 million in the second quarter of 2012

 

·                  Gross profitdecreased 39.6% year over year to $8.1 million, compared to $13.4 million in the second quarter of 2012

 

·                  Gross margin was 37.2% in the second quarter of 2013, compared to 34.4% in the second quarter of 2012

 

·                  Net loss was $6.2 million, compared to net loss of $4.9 million in the second quarter of 2012

 

Mecox Lane’s Director and Chief Executive Officer Mr. Alfred Gu said, “We remained conservative in our overall execution in the second quarter while we explored the best ways of leveraging our new JV, Giosis Mecoxlane. At the same time, macroeconomic headwinds in China continued to be a challenge and the slowdown in China’s economy has negatively influenced the fast-changing and hyper-competitive industry of Chinese e-commerce and apparel and accessories. In the second quarter, we decreased our inventory and overhead costs to preserve cash and increase operating efficiency. Despite much lower revenues compared to the same quarter last year, net loss from operations was relatively constant, reflecting the effectiveness of our cost-cutting initiatives. Although our e-commerce revenues continued to be negatively impacted by the transformation of M18.com to a non-exclusive, multi-channel platform, we saw increased sales on independent e-commerce platforms such as TMall.com in the second quarter and have refocused on our core strength of providing value-for-money, fast-fashion products to China’s consumers. Looking forward, we will remain prudent with regard to our costs and cash expenditures and will continue to make efforts to position ourselves as a multi-brand and multi-channel fast fashion apparel company.”

 

Second Quarter 2013 Results

 

Due to the seasonal nature of its business, the Company presents its financial results on a year-over-year basis for the second quarter of 2013 and the second quarter of 2012 as follows.

 


1 Gross profit excludes the impact of depreciation and amortization expenses.

 



 

Total Net Revenues

 

Total net revenues were $21.8 million in the second quarter of 2013, representing a decrease of 44.1% from $39.0 million in the second quarter of 2012. The decrease was primarily due to the decrease in net revenues from the Company’s e-commerce channel, as well as the decrease in net revenues from the Company’s call center and physical stores.

 

E-commerce Channel2

 

Net revenues from the Company’s e-commerce channel were $6.7 million in the second quarter of 2013, representing a decrease of 65.8% from $19.6 million in the second quarter of 2012. The decrease was primarily attributed to the decrease in the Company’s sales on M18.com during the period after the website was operated by the management of Giosis Mecoxlane and re-launched as a brand-neutral open platform, partially offset by the increase in the Company’s sales on independent e-commerce platforms, including TMall.com and JD.com.

 

Call Center

 

Net revenues from the call center were $10.5 million in the second quarter of 2013, representing a decrease of 7.8% from $11.4 million in the second quarter of 2012. The decrease was primarily attributed to a decline in orders placed through the call center as a result of a reduction and discontinuation of the Company’s catalog circulation since January 2013.

 

Directly Operated Stores & Franchised Stores

 

Net revenues from directly operated stores were $3.1 million in the second quarter of 2013, representing a decrease of 36.8% from $4.9 million in the second quarter of 2012. The decrease was primarily due to the decline in the number of directly operated stores from an average of 109 stores in the second quarter of 2012 to an average of 60 stores in the second quarter of 2013, partially offset by an increase in average store sales.

 

Net revenues from franchised stores were $1.5 million in the second quarter of 2013, representing a decrease of 51.7% from $3.2 million in the second quarter of 2012. The decrease in net revenues

 


 Since January 2013, one of the Company’s reportable segments, i.e. Internet platform segment, has been renamed as E-commerce channel to reflect the fact that the M18.com website has been operated by Giosis Mecoxlane and re-launched as a brand-neutral and open marketplace platform to attract a number of independent sellers and brands while the Company’s branded merchandise has also been offered on other third-party e-commerce websites in China.

 



 

was primarily due to the decline in average store sales and the decline in the number of franchised stores from an average of 267 stores in the second quarter of 2012 to an average of 256 stores in the second quarter of 2013.

 

Cost of Goods Sold3

 

Cost of goods sold was $13.7 million in the second quarter of 2013, representing a decrease of 46.5% from $25.6 million in the second quarter of 2012. The decrease is consistent with the overall decrease in revenues.

 

Gross Profit and Gross Margin

 

Gross profit was $8.1 million in the second quarter of 2013, representing a decrease of 39.6% from $13.4 million in the second quarter of 2012. Gross margin was 37.2% in the second quarter of 2013, compared to 34.4% in the second quarter of 2012. The increase in gross margin was mainly due to the increase in the weighting of the call center in total net revenues, which generated a higher margin than that of other segments, partially offset by an inventory provision of $0.9 million recorded during the period for the Company’s physical stores as the Company tested new brands and products.

 

Operating Expenses

 

Total operating expenses were $13.8 million in the second quarter of 2013, representing a decrease of 26.7% from $18.8 million in the second quarter of 2012, primarily due to the decrease of selling, general and administrative expenses in the period.

 

Selling, general and administrative expenses were $13.0 million in the second quarter of 2013, representing a decrease of 30.1% from $18.6 million in the second quarter of 2012, primarily due to a decrease in headcount and related labor costs, the termination of certain warehouse leases as a result of our centralized logistics network, and a shift to Giosis Mecoxlane of advertising costs and IT expenses associated with the operation of M18.com.

 

Loss from Operations

 

Loss from operations was $5.7 million in the second quarter of 2013, compared to loss from operations of $5.4 million in the second quarter of 2012.

 


3 Cost of goods sold excludes depreciation and amortization expenses.

 



 

Loss from equity in an affiliate

 

Loss from equity in an affiliate was $1.2 million in the second quarter of 2013, compared to nil in the second quarter of 2012.

 

Net Loss and Loss per ADS

 

Net loss was $6.2 million in the second quarter of 2013, compared to net loss of $4.9 million in the second quarter of 2012. Non-GAAP net loss4 was $5.2 million in the second quarter of 2013, compared to non-GAAP net loss of $4.3 million in the second quarter of 2012. Basic and diluted loss per American depositary share (“ADS”) attributable to Mecox Lane shareholders was $0.53 in the second quarter of 2013. One ADS represents thirty-five ordinary shares.

 

Cash and Short-term Investments

 

As of June 30, 2013, Mecox Lane had cash and cash equivalents totaling $7.2 million, compared to $13.3 million as of December 31, 2012. Restricted cash as of June 30, 2013 totaled $17.9 million, compared to nil as of December 31, 2012. Short-term investments on June 30, 2013 were $10.5 million, compared to $20.7 million as of December 31, 2012, all of which were structured term bank deposits.

 

Secured Short-term Borrowing

 

As of June 30, 2013, Mecox Lane had secured short-term borrowing totaling $15.4 million, compared to nil as of December 31, 2012, all of which was secured by restricted cash of $17.9 million.

 

Conference Call Information

 

Mecox Lane management will hold an earnings conference call at 9 p.m. U.S. Eastern Time on August 13 (9 a.m. Shanghai/Hong Kong Time on August 14) to discuss results and highlights from the quarter, as well as to answer questions. A brief presentation to accompany the earnings call will be available on the Company’s website, http://ir.mecoxlane.com/events.cfm, at 7:30 p.m. U.S. Eastern Time on August 13 (7:30 a.m. Shanghai/Hong Kong Time on August 14).

 


4 Non-GAAP net loss and non-GAAP net income exclude share-based compensation expenses.  The non-GAAP measures and related reconciliations to GAAP measures are described in the accompanying sections of “About Non-GAAP Financial Measures” and the accompanying table of “Mecox Lane Limited — Consolidated Statement of Operations Information — Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures” at the end of this press release.

 



 

The dial-in numbers and passcode for the conference call are as follows:

 

U.S. Toll Free:

 

+1-855-500-8701

International:

 

+65-6723-9385

Hong Kong:

 

+852-3051-2745

Passcode:

 

29368366

 

Additionally, an archived webcast of this call will be available on the Investor Relations section of Mecox Lane’s website at http://ir.mecoxlane.com.

 

About Mecox Lane Limited

 

Mecox Lane Limited (NASDAQ: MCOX) is a leading brand and multi-channel retailer of apparel and accessories in China.  The Company offers a wide selection of affordable fashion products through e-commerce channels including the M18.com website, which is operated by the Company’s joint venture, Giosis Mecoxlane Limited, and other independent e-commerce platforms, as well as through the Company’s physical store network and call center. Product offerings include apparel and accessories, beauty and healthcare products and other items under Mecox Lane’s own proprietary brands, and select domestic and international third-party brands.  For more information on Mecox Lane, please visit http://ir.mecoxlane.com.

 

Safe Harbor: Forward Looking Statements

 

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “aims,” “estimates,” “confident,” “likely to” and similar statements. Among other things, the quotations from management in this press release, as well as the Company’s strategic and operational plans, contain 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: the Company’s business strategies and initiatives as well as its business plans; the Company’s future business development, results of operations and financial condition; changes in the Company’s revenues and certain cost or expense items; the Company’s expectations with respect to increased revenue growth and its ability to sustain profitability; the Company’s products under development or planning; the Company’s ability to attract customers and further enhance its brand recognition; trends and competition in the e-commerce and apparel and accessories industry; the e-commerce and apparel and accessories industry in China may not grow at the rates projected by market data, or at all; the failure of the

 



 

markets to grow at the projected rates may have a material adverse effect on the Company’s business and the market price of its ADSs; in addition, the rapidly changing nature of the e-commerce and apparel and accessories industry in China subjects any projections or estimates relating to the growth prospects or future condition of the Company’s market to significant uncertainties. If any one or more of the assumptions underlying the market data turns out to be incorrect, actual results may differ from the projections based on these assumptions. You should not place undue reliance on these forward-looking statements.  Further information regarding these and other risks is included in the Company’s annual report on Form 20-F as well as in its other filings with the Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.

 

About Non-GAAP Financial Measures

 

To supplement Mecox Lane’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Mecox Lane uses in this press release non-GAAP net income (loss), which excludes share-based compensation expenses. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

 

Mecox Lane believes that the non-GAAP financial measure facilitates investors’ and management’s comparisons to Mecox Lane’s historical performance and assists management’s financial and operational decision making. A limitation of using the non-GAAP financial measure is that share-based compensation expenses are recurring expenses that will continue to exist in Mecox Lane’s business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from the non-GAAP measure. The accompanying table has more details on the reconciliation between the non-GAAP financial measure and its most directly comparable GAAP financial measure.

 

For investor and media inquiries please contact:

 

In China:

 

Ryan Shi

Mecox Lane Limited

Tel: +86-21-6495-0500 or +86-21-5464-9900 Ext. 8161

Email: ir@mecoxlane.com

 

Nicholas Manganaro

Ogilvy Financial, Beijing

Tel: +86-10-8520-3073

Email: mcox@ogilvy.com

 

In the U.S.:

 

Justin Knapp

Ogilvy Financial, U.S.

Tel: +1-646-460-9989

Email: mcox@ogilvy.com

 



 

Mecox Lane Limited

Unaudited Consolidated Balance Sheet

 

 

 

December 31,

 

June 30,

 

 

 

2012

 

2013

 

 

 

$

 

$

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

13,291,063

 

7,166,961

 

Restricted cash

 

 

17,868,508

 

Short-term investments

 

20,682,480

 

10,519,990

 

Accounts receivable, net of allowances of $55,660 and $55,660 as of December 31, 2012 and June 30, 2013, respectively

 

1,452,864

 

2,279,954

 

Amount due from a related party

 

 

292,717

 

Other receivables

 

5,149,844

 

3,604,333

 

Advances to suppliers and prepaid expenses

 

6,297,463

 

1,078,626

 

Merchandise inventories

 

27,349,540

 

21,647,885

 

 

 

 

 

 

 

Total current assets

 

74,223,254

 

64,458,974

 

Property and equipment, net

 

46,528,057

 

45,520,287

 

Prepaid land use right

 

6,125,104

 

6,166,630

 

Intangible assets, net

 

1,263,644

 

1,113,648

 

Investment in an affiliate

 

 

8,928,742

 

Other non-current assets

 

249,903

 

959,382

 

 

 

 

 

 

 

TOTAL ASSETS

 

128,389,962

 

127,147,663

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Secured short term borrowing

 

 

15,375,370

 

Accounts payable (including accounts payable of the consolidated VIEs without recourse to Mecox Lane Limited of $3,101,935 and $2,712,605 as of December 31, 2012 and June 30, 2013, respectively)

 

19,063,827

 

13,382,765

 

Advances from customers (including advances from customers of the consolidated VIEs without recourse to Mecox Lane Limited of $1,345,714 and $1,063,758 as of December 31, 2012 and June 30, 2013, respectively)

 

4,570,595

 

3,940,128

 

Amount due to a related party

 

547,478

 

1,431,032

 

Accrued expenses (including accrued expenses of the consolidated VIEs without recourse to Mecox Lane Limited of $281,152 and $209,419 as of December 31, 2012 and June 30, 2013, respectively)

 

5,153,056

 

3,208,462

 

Other current liabilities (including other current liabilities of the consolidated VIEs without recourse to Mecox Lane Limited of $1,955,777 and $1,774,163 as of December 31, 2012 and June 30, 2013, respectively)

 

7,358,589

 

6,329,660

 

Income tax payable (including income tax payable of the consolidated VIEs without recourse to Mecox Lane Limited of $34,718 and $33,100 as of December 31, 2012 and June 30, 2013, respectively)

 

1,779,978

 

1,782,479

 

 

 

 

 

 

 

Total current liabilities

 

38,473,523

 

45,449,896

 

 

 

 

 

 

 

Ordinary shares ($0.0001 par value; 10,000,000,000 shares authorized, 408,727,673 and 424,591,756 shares issued, and 403,790,426 and 413,535,851 shares outstanding as of December 31, 2012 and June 30, 2013)

 

40,873

 

42,459

 

Additional paid-in capital

 

165,934,265

 

167,970,969

 

Treasury Stock

 

(572,168

)

(1,273,364

)

Accumulated deficit

 

(82,811,023

)

(93,220,188

)

Accumulated other comprehensive income

 

6,292,753

 

7,146,152

 

Statutory reserve

 

931,739

 

931,739

 

 

 

 

 

 

 

Total Mecox Lane Limited equity

 

89,816,439

 

81,597,767

 

Noncontrolling interests

 

100,000

 

100,000

 

 

 

 

 

 

 

Total equity

 

89,916,439

 

81,697,767

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

128,389,962

 

127,147,663

 

 



 

Mecox Lane Limited

Unaudited Consolidated Statements of Comprehensive Income (Loss)

 

 

 

Three-month Ended June 30

 

 

 

2012

 

2013

 

 

 

$

 

$

 

 

 

 

 

 

 

Net revenues:

 

 

 

 

 

E-commerce channel

 

19,640,275

 

6,724,532

 

Call center

 

11,357,889

 

10,474,386

 

Directly operated stores

 

4,861,486

 

3,070,277

 

Franchised stores

 

3,165,999

 

1,528,167

 

Total net revenues

 

39,025,649

 

21,797,362

 

 

 

 

 

 

 

Cost of goods sold (excluding depreciation and amortization)

 

 

 

 

 

E-commerce channel

 

15,968,374

 

5,354,614

 

Call center

 

4,854,816

 

4,796,296

 

Directly operated stores

 

2,336,039

 

2,316,726

 

Franchised stores

 

2,445,535

 

1,224,904

 

Total cost of goods sold (excluding depreciation and amortization)

 

25,604,764

 

13,692,540

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Selling, general and administrative expenses

 

18,570,423

 

12,978,980

 

Depreciation and amortization

 

1,040,516

 

1,214,508

 

Other operating income, net

 

(823,330

)

(426,243

)

 

 

 

 

 

 

Total operating expenses

 

18,787,609

 

13,767,245

 

 

 

 

 

 

 

Income (Loss) from operations

 

(5,366,724

)

(5,662,423

)

Interest expense

 

 

(136,980

)

Interest income

 

622,081

 

279,497

 

Other income (expense), net

 

(204,261

)

508,444

 

 

 

 

 

 

 

Loss before income taxes, equity in affiliates and noncontrolling interests

 

(4,948,904

)

(5,011,462

)

Income tax expense

 

 

 

 

 

 

 

 

 

Loss before equity in affiliates and noncontrolling interests

 

(4,948,904

)

(5,011,462

)

Loss from equity in an affiliate

 

 

(1,173,074

)

 

 

 

 

 

 

Net loss

 

(4,948,904

)

(6,184,536

)

Accretion of noncontrolling interest

 

91,884

 

23,307

 

Net loss attributable to noncontrolling interests

 

(91,884

)

(23,307

)

Net loss attributable to Mecox Lane Limited shareholders

 

(4,948,904

)

(6,184,536

)

 

 

 

 

 

 

Loss per ordinary share:

 

 

 

 

 

Basic

 

(0.01

)

(0.02

)

Diluted

 

(0.01

)

(0.02

)

Loss per ADS (1)

 

 

 

 

 

Basic

 

(0.43

)

(0.53

)

Diluted

 

(0.43

)

(0.53

)

Weighted average ordinary shares used in per share calculation

 

 

 

 

 

Basic

 

405,074,604

 

410,384,335

 

Diluted

 

405,074,604

 

410,384,335

 

Weighted average ADS used in per share calculation (1)

 

 

 

 

 

Basic

 

11,573,560

 

11,725,266

 

Diluted

 

11,573,560

 

11,725,266

 

 


(1) ADS amounts adjusted for a change in the ratio of the Company’s American Depositary Shares (“ADSs”) to ordinary shares (“Shares”) from 1:7 to 1:35 (“Ratio Change”), effective as of February 1, 2013.

 

Other comprehensive income, net of tax of nil

 

 

 

 

 

Change in cumulative foreign currency translation adjustment

 

(336,189

)

663,892

 

Other comprehensive income, net of tax

 

(336,189

)

663,892

 

 

 

 

 

 

 

Comprehensive income attributable to Mecox Lane Limited shareholders

 

(5,285,093

)

(5,520,644

)

 

Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures

 

Non-GAAP net income (loss) (1)

 

(4,343,617

)

(5,198,002

)

 

Note (1) We define non-GAAP net income (loss), a non-GAAP financial measure, as net income (loss) excluding share-based compensation expenses. We review non-GAAP net income (loss) together with net income (loss) to obtain a better understanding of our operating performance. We also believe it is useful supplemental information for investors and analysts to assess our operating performance without the effect of non-cash sharebased compensation expenses, which have been and will continue to be significant recurring expenses in our business. However, the use of non-GAAP net income (loss) has material limitations as an analytical tool. One of the limitations of using non-GAAP net income (loss) is that it does not include all items that impact our net income (loss) for the period. In addition, because non-GAAP net income (loss) is not calculated in the same manner by all companies, it may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP net income (loss) in isolation from or as an alternative to net income (loss) prepared in accordance with U.S. GAAP.

 

The following table sets forth the reconciliation of non-GAAP net income (loss), a non-GAAP financial measure, from net income (loss), our most directly comparable financial measure presented in accordance with U.S. GAAP, for the periods indicated.

 

 

 

Three-month Periods Ended June 30

 

 

 

2012

 

2013

 

 

 

$

 

$

 

Net loss

 

(4,948,904

)

(6,184,536

)

Add back: Share-based compensation expenses

 

605,287

 

986,534

 

Non-GAAP net loss

 

(4,343,617

)

(5,198,002

)