After conglomerate HNA Group aborted a 7.5 billion yuan ($1.12 billion) deal to take over Dangdang Inc. in 2018, what is in store for the platform in the future?
“Dangdang should pursue steady and profitable growth,” said founder Peggy Yu in an exclusive interview with Caixin in February.
The company’s net profit rose 35% to 425 million yuan in 2018. Profits in 2015 and 2016 were 92 million yuan and 86 million yuan, respectively, according to financial documents revealed by Yu to Caixin.
In comparison, JD.com Inc. saw its loss in 2018 widen to $409.5 million from $14.8 million in 2017. Alibaba Group Holding Ltd.’s profit rose to $10.1 billion in 2018, from $6 billion a year earlier.
Yu said she is currently content with the scale and state of the e-commerce pioneer, despite some critics saying it has been overshadowed by latecomers such as JD.com and Alibaba.
Yu however didn’t rule out the possibility of seeking a relisting in Hong Kong, or selling the company.
Dangdang, which derives some 70% of its revenue from book sales, has no intention of following rivals by expanding its offerings, Yu said. The company plans to focus on developing audiobooks and e-readers going forward.