Are China’s e-commerce businesses running out of ‘steam’? After Alibaba’s reporting declining growth in its paying customer base, Zhejiang Netsun reports a drop in revenues.
Shenzhen-listed online sourcing platform, Zhejiang Netsun released its financial results for 2011. The company reported revenues of US$23 million, down 17% from 2010. Net profit attributable to shareholders in the year was US$5.1 million, a year-on-year drop of 37%. Management of the company attributed the downturn in performance to its chemical trading services, dropped 81% to just US$1.04 million in 2011. Earnings per share in the period were RMB 0.20 (US$0.032).
The Hangzhou-based company also announced its results for the quarter ended 31st March 2012. Revenues were US$5.7 million – a decrease of 9% compared with the same quarter of 2011. Net profit attributable to shareholders in the period dropped 4.3%, down to US$1.7 million. Earnings per share in the quarter were RMB 0.07 (US$0.011).
Source: Business Strategies Group Hong Kong