DangDang.com (NYSE:DANG), China’s largest online book store is going through some major problems at the moment.

Firstly, financially they have recorded three consecutive quarters of losses due to setting lower prices and promotions to attract customers away from 360Buy.com and TMall.com. Shares have dropped 84 percent last year, falling below the December 2010 initial public offering price of $16. The company last month posted a fourth-quarter net loss of 129.8 million yuan ($21 million), compared with profit of 14.8 million yuan a year earlier.

According to a Bloomberg report, CFO, Conor Yang “Pricing is a very important factor for margins,” Yang said in the Bloomberg Television interview. “Even as we’re selling at 30 to 35 percent cheaper than physical bookstores, we’re still able to enjoy a fairly good margin because of our scale.”

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Jason Lim

Jason is an Australian born Chinese living in Beijing, specializing in entrepreneurship, start-ups and the investment eco-system in China, especially in the tech and social area.