The Chinese etailer, Dangdang Inc., saw their net profit more than triple in just one year. Dangdang reports that its net profit for the period ending March 31 rose to CNY3.1 million ($0.5 million) from CNY1.0 million a year earlier.  The company believes in its strategy and shows China how to do e-commerce.

Peggy Yu Yu, Dangdang’s Chairwoman said, “In December the company wouldn’t “squeeze for net profit yet” and would “keep plowing whatever gross margin we make back into operations.”

The results were so fantastic that the company exceeded the average forecast of five analysts for the company.  The first-quarter revenue rose 53.4 percent, which is slightly above the average $103.4 million forecast of the six analysts polled by Thomson Reuters.

Yu believes that the growth will continue over the bottom line.  Dangdang’s listing was so impressive that Chinese Internet companies are starting to raise concern among some observers about a potential bubble in the stocks.

In a conference call with analysts, Peggy Yu Yu said, ”We are a facing a tremendous growth opportunity in e-commerce in China. We continue to enlarge our current business, and work on adding abilities for future growth in coming years. Based on our strong top-line growth, we believe this is right strategy for Dangdang.”

“We have seen a lot of capital flowing into this segment in the last six to nine months,” Yu said. “I don’t think the competition is going to change our strategy or our thinking.”