PERFECT WORLD CO., LTD. (ADR) BEIJING, Nov. 25, 2014 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its unaudited financial results for the third quarter ended September 30, 2014.
http://photos.prnewswire.com/prnvar/20090416/CNTH023LOGO
Third Quarter 2014 Highlights[1]
-- Total revenues were RMB974.3 million (USD158.7 million), compared with
RMB928.4 million in the previous quarter and RMB820.2 million in the
same quarter last year.
-- Gross profit was RMB672.4 million (USD109.5 million), compared with
RMB678.6 million in the previous quarter and RMB637.7 million in the
same quarter last year.
-- Operating loss was RMB23.3 million (USD3.8 million), compared with
operating profit of RMB128.2 million in the previous quarter and
RMB115.1 million in the same quarter last year. Excluding the
share-based compensation charge, the goodwill impairment and the
impairment of intangibles via acquisitions of businesses and related tax
impact, non-GAAP operating profit[2] was RMB42.4 million (USD6.9
million), compared with RMB138.4 million in the previous quarter and
RMB135.7 million in the same quarter last year.
-- Net income attributable to the Company's shareholders was RMB60.7
million (USD9.9 million), compared with RMB161.7 million in the previous
quarter and RMB120.9 million in the same quarter last year. Excluding
the share-based compensation charge, the goodwill impairment and the
impairment of intangibles via acquisitions of businesses and related tax
impact, non-GAAP net income attributable to the Company's
shareholders[2] was RMB126.4 million (USD20.6 million), compared with
RMB171.9 million in the previous quarter and RMB141.5 million in the
same quarter last year.
-- Basic and diluted earnings per ADS[3] were RMB1.22 (USD0.20) and RMB1.20
(USD0.19), respectively, compared with RMB3.26 and RMB3.21,
respectively, in the previous quarter, and RMB2.47 and RMB2.41,
respectively, in the same quarter last year. Excluding the share-based
compensation charge, the goodwill impairment and the impairment of
intangibles via acquisitions of businesses and related tax impact,
non-GAAP basic and diluted earnings per ADS[2] were RMB2.55 (USD0.42)
and RMB2.49 (USD0.41), respectively, compared with RMB3.47 and RMB3.41,
respectively, in the previous quarter, and RMB2.89 and RMB2.82,
respectively, in the same quarter last year.
[1] The U.S. dollar (USD) amounts
disclosed in this press release,
except for those transaction
amounts that were actually
settled in U.S. dollars, are
presented solely for the
convenience of the reader. The
conversion of Renminbi (RMB) into
USD in this release is based on
the noon buying rate in The City
of New York for cable transfers
in RMB per USD as certified for
customs purposes by the Federal
Reserve Bank of New York as of
September 30, 2014, which was
RMB6.1380 to USD1.00. The
percentages stated in this press
release are calculated based on
the RMB amounts.
[2] As used in this press release,
non-GAAP operating profit, non-
GAAP net income attributable to
the Company's shareholders and
non-GAAP earnings per ADS are
defined to exclude the share-
based compensation charge, the
goodwill impairment and the
impairment of intangibles via
acquisitions of businesses and
related tax impact from operating
profit, net income attributable
to the Company's shareholders and
earnings per ADS, respectively.
See "Non-GAAP Financial
Measures" and "Reconciliation of
GAAP and Non-GAAP Results" at
the end of this press release.
[3] Each ADS represents five
ordinary shares.
Mr. Robert Xiao, CEO of Perfect World commented, "We are pleased to announce our third quarter results. Total revenues rose by 5% quarter-over-quarter, which came in line with our expectations. The sequential revenue growth was mainly attributed to our newly launched mobile games 'CrossGate Mobile' and 'Forsaken World.' 'DOTA2,' a world-class title for which we have obtained exclusive rights to operate in mainland China, also continued to perform well."
"During the third quarter, we continued to expand our portfolio by launching new games and releasing expansion packs for our existing games. In addition to launching 'CrossGate Mobile' early in the quarter, we launched 'Legend of the Condor Heroes,' a 3D MMORPG based on one of Louis Cha's classic martial arts novels, and the mobile game 'Touch' toward the end of the quarter. We also launched the console version of 'Neverwinter' in mainland China through the Xbox One platform?and we are working on localizing a PC version of the game for China. Moreover, we have a variety of upcoming titles in our mobile game pipeline, such as 'Forever Mars,' 'Dawn after Dark,' 'Swordsman Mobile,' and 'Saint Seiya Mobile.' "
"Research and development continues to be our main competitive advantage. In order to further bolster our competitive edge in this area, we recently restructured our R&D teams to form five new subsidiaries. We believe this new structure will help better incentivize top talent, support game design flexibility, allow faster reaction to changing market trends, and boost game development productivity."
"During the quarter, we continued to make progress in launching our games in various markets through our overseas partners and subsidiaries. At the same time, we face fierce competition in the global market. In view of U.S. subsidiary's recent performance and near-term business outlook that are below our expectations, we recognized acquisition-related impairments in this quarter. However, we are still confident in the long-term prospects of our U.S. subsidiary given its strong R&D and operational capabilities as well as promising pipeline. With our extensive overseas network that covers more than 100 countries and regions around the world, we remain committed to further expanding our overseas penetration and bolstering our global presence."
"We are constantly on the lookout to identify new market trends as we endeavor to position ourselves to capture growth opportunities in the global market. We believe our strategies will bring long term value to our shareholders as we seek to create captivating entertainment experiences for gamers worldwide."
Third Quarter 2014 Financial Results
Total Revenues
Total revenues were RMB974.3 million (USD158.7 million), compared with RMB928.4 million in the previous quarter and RMB820.2 million in the same quarter last year.
Online game operation revenues, which include both domestic and overseas online game operations, were RMB919.5 million (USD149.8 million), compared with RMB861.1 million in the previous quarter and RMB750.2 million in the same quarter last year. The increase from the previous quarter was mainly due to the strong performance of the Company's mobile games, such as the newly launched "CrossGate Mobile" and "Forsaken World."
The aggregate average concurrent users (ACU) for PC games under operation in mainland China was approximately 623,000, compared with 661,000 in the previous quarter and 778,000 in the same quarter last year.
Licensing revenues were RMB38.6 million (USD6.3 million), compared with RMB48.9 million in the previous quarter and RMB39.1 million in the same quarter last year. The decrease from the previous quarter was mainly because the Company had fewer major new game launches through its partners in overseas markets in 3Q14.
Other revenues were RMB16.2 million (USD2.6 million), compared with RMB18.3 million in the previous quarter and RMB30.9 million in the same quarter last year.
Cost of Revenues
Cost of revenues was RMB301.9 million (USD49.2 million), compared with RMB249.8 million in the previous quarter and RMB182.5 million in the same quarter last year. The increase from the previous quarter was mainly due to an increase in revenue sharing, particularly with mobile game distribution channels as a result of the strong performance of the Company's mobile games in 3Q14.
Gross Profit and Gross Margin
Gross profit was RMB672.4 million (USD109.5 million), compared with RMB678.6 million in the previous quarter and RMB637.7 million in the same quarter last year. Gross margin was 69.0%, compared with 73.1% in the previous quarter and 77.8% in the same quarter last year.
Operating Expenses
Operating expenses were RMB695.7 million (USD113.3 million), compared with RMB550.3 million in the previous quarter and RMB522.6 million in the same quarter last year. The increase in operating expenses from the previous quarter was mainly due to an increase in sales and marketing expenses, the goodwill impairment and the impairment of intangibles via acquisitions associated with the Company's U.S. subsidiary, as well as higher R&D expenses in 3Q14.
R&D expenses were RMB280.8 million (USD45.7 million), compared with RMB259.8 million in the previous quarter and RMB236.0 million in the same quarter last year. The increase from the previous quarter was primarily due to an increase in staff cost.
Sales and marketing expenses were RMB267.1 million (USD43.5 million), compared with RMB197.8 million in the previous quarter and RMB210.2 million in the same quarter last year. The increase from the previous quarter was primarily due to an increase in advertising and promotional expenses associated with several recently-launched new games.
General and administrative expenses were RMB117.3 million (USD19.1 million), compared with RMB92.8 million in the previous quarter and RMB76.4 million in the same quarter last year. The increase from the previous quarter was mainly due to the impairment of intangibles via acquisitions associated with the Company's U.S. subsidiary.
Goodwill impairment was RMB30.5 million (USD5.0 million), as compared with Nil in the previous quarter and Nil in the same quarter last year. The increase was primarily due to the goodwill impairment associated with the Company's U.S. subsidiary.
Operating Loss/Profit
Operating loss was RMB23.3 million (USD3.8 million), compared with operating profit of RMB128.2 million in the previous quarter and RMB115.1 million in the same quarter last year. Excluding the share-based compensation charge, the goodwill impairment and the impairment of intangibles via acquisitions of businesses and related tax impact, non-GAAP operating profit was RMB42.4 million (USD6.9 million), compared with RMB138.4 million in the previous quarter and RMB135.7 million in the same quarter last year.
Total Other Income
Total other income was RMB100.7 million (USD16.4 million), compared with RMB42.1 million in the previous quarter and RMB26.6 million in the same quarter last year. The increase from the previous quarter was largely due to an investment gain, including the gain of approximately RMB28.5 million from the sale of 30,326,005 class A ordinary shares of Shanda Games Limited, and a foreign exchange gain recognized in 3Q14.
Income Tax Expense
Income tax expense was RMB29.1 million (USD4.7 million), compared with RMB10.5 million in the previous quarter and RMB14.1 million in the same quarter last year. The increase from the previous quarter was primarily because some of the Company's controlled entities that are subject to higher tax rates earned more pre-tax profit than the previous quarter.
Net Income Attributable to the Company's Shareholders
Net income attributable to the Company's shareholders was RMB60.7 million (USD9.9 million), compared with RMB161.7 million in the previous quarter and RMB120.9 million in the same quarter last year. Excluding the share-based compensation charge, the goodwill impairment and the impairment of intangibles via acquisitions of businesses and related tax impact, non-GAAP net income attributable to the Company's shareholders was RMB126.4 million (USD20.6 million), compared with RMB171.9 million in the previous quarter and RMB141.5 million in the same quarter last year.
Basic and diluted earnings per ADS were RMB1.22 (USD0.20) and RMB1.20 (USD0.19), respectively, compared with RMB3.26 and RMB3.21, respectively, in the previous quarter, and RMB2.47 and RMB2.41, respectively, in the same quarter last year. Excluding the share-based compensation charge, the goodwill impairment and the impairment of intangibles via acquisitions of businesses and related tax impact, non-GAAP basic and diluted earnings per ADS were RMB2.55 (USD0.42) and RMB2.49 (USD0.41), respectively, compared with RMB3.47 and RMB3.41, respectively, in the previous quarter, and RMB2.89 and RMB2.82, respectively, in the same quarter last year.
Cash and Cash Equivalents
As of September 30, 2014, the Company had RMB1,278.6 million (USD208.3 million) of cash and cash equivalents, compared with RMB883.6 million as of June 30, 2014. The increase was mainly due to the proceeds from the sale of 30,326,005 class A ordinary shares of Shanda Games Limited and the net cash inflow generated from the Company's online game operations. This was partially offset by the investments in certain short-term structured deposits.
Business Outlook
Based on the Company's current operations, total revenues for the fourth quarter of 2014 are expected to be between RMB1,023 million and RMB1,072 million, representing an increase of 5% to 10% on a sequential basis. This takes into consideration the expected growth from the continued strength of the Company's mobile games.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company's shareholders and non-GAAP earnings per ADS by excluding the share-based compensation charge, the goodwill impairment and the impairment of intangibles via acquisitions of businesses and related tax impact from operating profit, net income attributable to the Company's shareholders and earnings per ADS, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation charge has been and will continue to be incurred and goodwill impairment and impairment of intangibles via acquisitions of businesses and related tax impact may recur in the future. They are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company's results. None of the non-GAAP measures is a measure of net income attributable to the Company's shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation charge, the goodwill impairment and the impairment of intangibles via acquisitions of businesses and related tax impact in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to, but not a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth at the end of this release.
Conference Call
Perfect World will host a conference call and live webcast at 8:00pm Eastern Standard Time on Tuesday, November 25, 2014 (9:00am Beijing time on Wednesday, November 26, 2014).
Dial-in numbers for the live conference call are as follows:
- U.S. Toll Free Number 1-800-742-9301
- International Dial-in
Number +61-2-8373-3610
-Mainland China Toll Free
Number 800-870-0210
- Hong Kong Toll Free Number 80-090-6648
- U.K. Toll Free Number 080-8234-1369
Conference ID: PWRD
A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World's website at http://www.pwrd.com.
A telephone replay of the call will be available beginning two hours after the conclusion of the conference call through 11:59pm Eastern Time, December 2, 2014.
Dial-in numbers for the replay are as follows:
- U.S. Toll Free Number 1-855-452-5696
- International Dial-in
Number +61-2-8199-0299
Conference ID: 32595310
About Perfect World Co., Ltd. (http://www.pwrd.com)
Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. Perfect World's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently and promptly introduce popular games designed to cater changing customer preferences and market trends. Perfect World's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals," "Fantasy Zhu Xian," "Forsaken World," "Empire of the Immortals," "Return of the Condor Heroes," "Saint Seiya Online," "Swordsman Online," "Holy King" and "Legend of the Condor Heroes;" an online casual game: "Hot Dance Party;" and a number of web games and mobile games. While a majority of the revenues are generated in China, Perfect World operates its games in North America, Europe, Japan, Korea and Southeast Asia through its own subsidiaries. Perfect World's games have also been licensed to leading game operators in a number of countries and regions in Asia, Latin America, and the Russian Federation and other Russian speaking territories. Perfect World intends to continue to explore new and innovative business models and is committed to maximizing shareholder value over time.
Safe Harbor Statements
This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. Among other things, the management's quotations and "Business Outlook" contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Perfect World's ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Further information regarding these and other risks is included in Perfect World's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. All information provided in this press release and in the attachments is as of November 25, 2014, and Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For further information, please contact
Perfect World Co., Ltd.
Vivien Wang -- Vice President, Capital Market & Corporate Communications
Tel: +86-10-5780-5700
Fax: +86-10-5780-5713
Email: ir@pwrd.com
http://www.pwrd.com
Christensen Investor Relations
Patty Bruner
Tel: +1-480-614-3036
Fax: +1-480-614-3033
Email: pbruner@christensenir.com
Jung Chang
Tel: +852-2117-0861
Fax: +852-2117-0869
Email: jchang@christensenir.com
Perfect World Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
December 31, September 30, September 30,
2013 2014 2014
---- ---- ----
RMB RMB USD
Assets
Current assets
Cash and cash equivalents 1,212,157,293 1,278,600,934 208,309,048
Restricted cash and time deposits 226,100,000 785,145,000 127,915,445
Short-term investments 1,307,892,890 1,569,576,701 255,714,679
Accounts receivable, net 197,715,605 294,503,511 47,980,370
Due from related parties 3,393,089 5,989,058 975,734
Prepayment and other assets 424,839,088 348,764,736 56,820,583
Deferred tax assets 40,387,485 46,062,757 7,504,522
Total current assets 3,412,485,450 4,328,642,697 705,220,381
------------- ------------- -----------
Non current assets
Equity investments 470,018,715 793,333,459 129,249,505
Time deposits 108,135,489 55,652,873 9,066,939
Restricted time deposits 7,597,873 7,677,376 1,250,794
Property, equipment, and software, net 1,353,740,512 1,327,284,045 216,240,477
Construction in progress 14,051,462 8,236,645 1,341,910
Intangible assets, net 330,718,241 304,812,000 49,659,824
Goodwill 511,270,880 497,164,881 80,997,863
Prepayments and other assets 86,177,977 57,145,720 9,310,153
Deferred tax assets 50,830,484 61,353,045 9,995,609
---------- ---------- ---------
Total assets 6,345,027,083 7,441,302,741 1,212,333,455
============= ============= =============
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable 95,908,036 133,684,736 21,779,855
Short-term bank loans 213,391,500 725,995,000 118,278,755
Advances from customers 102,469,102 67,657,859 11,022,786
Salary and welfare payable 287,057,153 337,014,816 54,906,291
Taxes payable 59,756,556 91,867,024 14,966,931
Accrued expenses and other liabilities 188,939,187 262,196,985 42,717,006
Due to related parties 91,750 19,583,570 3,190,546
Deferred revenues 742,171,227 850,713,333 138,597,806
Deferred tax liabilities 87,173,299 99,093,040 16,144,190
Deferred government grants 5,000,000 175,020 28,514
Total current liabilities 1,781,957,810 2,587,981,383 421,632,680
------------- ------------- -----------
Non current liabilities
Deferred revenues 38,655,431 18,641,535 3,037,070
Deferred tax liabilities 13,408,787 19,800,923 3,225,957
Other long-term liabilities 2,800,000 2,164,660 352,665
--------- --------- -------
Total liabilities 1,836,822,028 2,628,588,501 428,248,372
------------- ------------- -----------
Shareholders' Equity
Ordinary shares (US$0.0001 par value, 10,000,000,000 197,003 198,006 32,259
shares authorized, 29,671,195 Class A ordinary shares
issued and outstanding, 217,308,865 Class B ordinary
shares issued and outstanding as of December 31, 2013;
10,000,000,000 shares authorized, 29,671,195 Class A
ordinary shares issued and outstanding, 218,940,010
Class B ordinary shares issued and outstanding as of
September 30, 2014)
Additional paid-in capital 452,966,738 510,789,751 83,217,620
Statutory reserves 312,339,625 312,339,625 50,886,221
Accumulated other comprehensive loss (126,536,702) (147,243,658) (23,988,866)
Retained earnings 3,832,064,435 4,109,236,964 669,474,905
Total Perfect World Shareholders' Equity 4,471,031,099 4,785,320,688 779,622,139
Non-controlling interests 37,173,956 27,393,552 4,462,944
---------- ---------- ---------
Total Shareholders' Equity 4,508,205,055 4,812,714,240 784,085,083
------------- ------------- -----------
Total Liabilities and Shareholders' Equity 6,345,027,083 7,441,302,741 1,212,333,455
============= ============= =============
Perfect World Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
Three months ended
------------------
September 30, June 30, September 30, September 30,
2013 2014 2014 2014
---- ---- ---- ----
RMB RMB RMB USD
Revenues
Online game operation revenues 750,200,986 861,126,055 919,467,704 149,799,235
Licensing revenues 39,078,354 48,942,956 38,625,706 6,292,881
Other revenues 30,888,624 18,299,616 16,203,813 2,639,917
---------- ---------- ---------- ---------
Total Revenues 820,167,964 928,368,627 974,297,223 158,732,033
Cost of revenues (182,455,810) (249,794,628) (301,887,545) (49,183,373)
------------ ------------ ------------ -----------
Gross profit 637,712,154 678,573,999 672,409,678 109,548,660
Operating expenses
Research and development expenses (236,006,148) (259,760,355) (280,756,233) (45,740,670)
Sales and marketing expenses (210,212,860) (197,778,058) (267,130,237) (43,520,729)
General and administrative expenses (76,378,447) (92,804,546) (117,300,930) (19,110,611)
Goodwill impairment - - (30,527,759) (4,973,568)
Total operating expenses (522,597,455) (550,342,959) (695,715,159) (113,345,578)
------------ ------------ ------------ ------------
Operating profit / (loss) 115,114,699 128,231,040 (23,305,481) (3,796,918)
----------- ----------- ----------- ----------
Other income / (expenses)
Share of (loss) / income from equity investments (4,551,283) (2,667,074) 36,246,603 5,905,279
Interest income 22,253,330 27,625,821 27,578,169 4,493,022
Interest expense (1,029,198) (3,706,848) (4,745,531) (773,140)
Others, net 9,976,845 20,874,918 41,572,126 6,772,911
--------- ---------- ---------- ---------
Total other income 26,649,694 42,126,817 100,651,367 16,398,072
---------- ---------- ----------- ----------
Profit before tax 141,764,393 170,357,857 77,345,886 12,601,154
Income tax expense (14,108,543) (10,486,818) (29,074,089) (4,736,737)
----------- ----------- ----------- ----------
Income from continuing operations, net of tax 127,655,850 159,871,039 48,271,797 7,864,417
----------- ----------- ---------- ---------
Loss from discontinued operations, net of tax (4,702,751) - - -
---------- --- --- ---
Net Income 122,953,099 159,871,039 48,271,797 7,864,417
----------- ----------- ---------- ---------
Net (income) / loss attributable to the non-controlling interests (2,038,077) 1,831,862 12,424,789 2,024,241
---------- --------- ---------- ---------
Net income attributable to the Company's shareholders 120,915,022 161,702,901 60,696,586 9,888,658
=========== =========== ========== =========
Net earnings per ordinary share, basic
Continuing operations 0.51 0.65 0.24 0.04
Discontinued operations (0.02) - - -
----- --- --- ---
Total earnings per ordinary share, basic 0.49 0.65 0.24 0.04
==== ==== ==== ====
Net earnings per ordinary share, diluted
Continuing operations 0.50 0.64 0.24 0.04
Discontinued operations (0.02) - - -
----- --- --- ---
Total earnings per ordinary share, diluted 0.48 0.64 0.24 0.04
==== ==== ==== ====
Net earnings per ADS, basic
Continuing operations 2.57 3.26 1.22 0.20
Discontinued operations (0.10) - - -
----- --- --- ---
Total earnings per ADS, basic 2.47 3.26 1.22 0.20
==== ==== ==== ====
Net earnings per ADS, diluted
Continuing operations 2.50 3.21 1.20 0.19
Discontinued operations (0.09) - - -
----- --- --- ---
Total earnings per ADS, diluted 2.41 3.21 1.20 0.19
==== ==== ==== ====
Shares used in calculating basic net earnings per ordinary share 244,382,546 247,753,275 248,194,498 248,194,498
Shares used in calculating diluted net earnings per ordinary share 251,156,777 252,119,378 253,798,761 253,798,761
Amount attributable to the Company's shareholders:
Income from continuing operations, net of tax 125,617,773 161,702,901 60,696,586 9,888,658
Loss from discontinued operations, net of tax (4,702,751) - - -
---------- --- --- ---
Net income 120,915,022 161,702,901 60,696,586 9,888,658
=========== =========== ========== =========
Total share-based compensation cost included in:
Cost of revenues (836,815) (245,065) (244,629) (39,855)
Research and development expenses (9,289,947) (3,455,256) (3,435,598) (559,726)
Sales and marketing expenses (3,270,968) (1,810,495) (1,778,802) (289,802)
General and administrative expenses (7,167,748) (4,665,292) (4,674,896) (761,632)
Perfect World Co., Ltd.
Reconciliation of GAAP and Non-GAAP Results
Three months ended
------------------
September 30, June 30, September 30, September 30,
2013 2014 2014 2014
---- ---- ---- ----
RMB RMB RMB USD
GAAP operating profit / (loss) 115,114,699 128,231,040 (23,305,481) (3,796,918)
Share based compensation charge 20,565,478 10,176,108 10,133,925 1,651,015
Impairment of intangibles via - - 25,087,354 4,087,220
acquisitions of businesses and
related tax impact
Goodwill impairment - - 30,527,759 4,973,568
Non-GAAP operating profit 135,680,177 138,407,148 42,443,557 6,914,885
=========== =========== ========== =========
GAAP net income attributable to 120,915,022 9,888,658
the Company's shareholders
161,702,901 60,696,586
Share based compensation charge 20,565,478 10,176,108 10,133,925 1,651,015
Impairment of intangibles via - - 25,087,354 4,087,220
acquisitions of businesses and
related tax impact
Goodwill impairment - - 30,527,759 4,973,568
Non-GAAP net income 171,879,009 126,445,624 20,600,461
attributable to the Company's
shareholders 141,480,500
===========
GAAP net earnings per ADS
- Basic 2.47 3.26 1.22 0.20
- Diluted 2.41 3.21 1.20 0.19
Non-GAAP net earnings per ADS
- Basic 2.89 3.47 2.55 0.42
- Diluted 2.82 3.41 2.49 0.41
ADSs used in calculating net
earnings per ADS
- Basic 48,876,509 49,550,655 49,638,900 49,638,900
- Diluted 50,231,355 50,423,876 50,759,752 50,759,752
Logo - http://photos.prnewswire.com/prnh/20090416/CNTH023LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/perfect-world-announces-third-quarter-2014-unaudited-financial-results-300001342.html
SOURCE Perfect World Co., Ltd.
