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The Economist Group Launches Its First Bilingual Chinese-English App The Economist Global Business Review

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A new app that explores key global trends in business, finance and technology – always with a strong point of view

HONG KONG, April 8, 2015 /PRNewswire/ — The Economist Group today officially launched a new digital app The Economist Global Business Review, focused on delivering insightful analysis on global trends in business, finance and technology. As the first in a planned series of local-language offerings, the bilingual Chinese-English app allows The Economist Group to reach a new set of global business leaders in markets like mainland China, Hong Kong, Taiwan, Malaysia and Singapore. The Economist Global Business Review is the first bilingual product featuring Economist content to be offered in the 171-year history of the weekly publication.  Recognising that today’s most influential business leaders span the globe, The Economist Global Business Review removes barriers to bring its spirit of independent reporting and sharp perspective to a wider audience, initially in Chinese, and expanding to other languages in future.

The Economist Global Business Review

The Economist Global Business Review

Curated by the editors at The Economist Group, The Economist Global Business Review features a selection of the best business, finance and technology stories from the weekly newspaper, which have been translated to the highest degree to maintain the stylistic nuances of the original text. Ten (10) articles are published initially at the start of the month; thereafter, a daily article is published each weekday for a total of 30 articles each month.

The bilingual app works in either English-Simplified-Chinese or English-Traditional Chinese and is available for iOS and Android smartphones and tablets. “Chinese was a natural first language for us to choose when launching this new bilingual product, given the increasing global reach of China’s companies and its diaspora,” said Tom Standage, Deputy Editor of The Economist.  “For many years we wrote off the idea of foreign-language editions as too expensive and impractical. However, the rise of digital technology changes the game. We can now deliver content quickly and without the cost constraints of print publishing.”

Tim Pinnegar, Publisher and Managing Director of The Economist Group Asia-Pacific said:  “Offering our unique content in local language opens up an entirely new market to us that was not possible to tap into before.  Our growth strategy over the next five years is exactly focused on attracting new audiences and capitalising on innovations in product and service offerings.”

Keeping in line with the minimalistic design aesthetics of The Economist, the app’s simple and intuitive interface allows for easy toggling between languages.  The app also features a powerful cache (the articles can be archived for up to 12 months) to facilitate offline reading.

The Economist Global Business Review is made available for free in April and May, courtesy of launch sponsor Hyundai.  Wonhong Cho, CMO of Hyundai Motor Company says, “We are glad to sponsor the launch of this new bilingual app from The Economist Group, and hope the app inspires new thinking and new possibilities within the Chinese business communities worldwide.” 

During this time, readers can download the app and experience the simple interface and compelling content completely free of charge. The app is available on the Apple App Store, Google Play, and a number of independent Android stores worldwide.  For more information, visit our website www.TEGBR.com

About The Economist Group

Headquartered in London, The Economist Group is the leading source of analysis on international business and world affairs.  Its publications and services include The Economist, the Economist Intelligence Unit (EIU), Intelligent Life and CQ Roll Call.  The Group delivers its information through a range of formats, from newspapers and magazines to conferences and electronic services.  Across all its products and services, the Group is known for its objectivity of opinion, originality of insight and rigorous analysis of key issues.

Photo – http://photos.prnasia.com/prnh/20150407/0861502669

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Le Shi to Unveil Super Smartphone on April 14, Create the New “Ecological Age”

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HONG KONG, April 7, 2015 /PRNewswire/ — One of the China’s most popular online video sites, Le Holdings (Beijing) Limited (Le Shi), has officially invited the press in early April to an announcement themed “From 1984 to 2015” at which the firm will unveil its Super Smartphone that will bring about unprecedented changes to user experience and the way the industry operates. The announcement will start at 14:00 on April 14 at the MasterCard Center in Beijing, China.

The theme “From 1984 to 2015” represents a new milestone in 2015. “While Apple’s announcement of its Macintosh computer in 1984 was seen as the beginning of a new age, Le Shi’s announcement of its Super Smartphone in 2015 will “overturn” Apple — the one who originally overturned — by bringing smartphones over to the new “Ecological Age,” remarked Le Shi’s Chairman Jia Yueting.

Le Shi’s Chairman on Weibo: An invitation to break boundaries

That particular theme and its implication are also echoed in Jia’s media invitation to the announcement from his Weibo account. He includes a graphic piece in which the “App” in “Apple” is crossed out, with only the “le” in “Le Shi” left untouched.

Jia’s Weibo invite themed “No Ecosystem Nothing Super” reads: “our time is changing; roles have changed but our spirit never changes! From 1984 to 2015, Le Shi invites you to #BreakBoundaries, EcologicalOverturn#; see you at 2pm on 4-14.”

The Chairman has proactively publicized the concepts behind the new smartphone and questioned Apple’s industrial design and its closed system after his surgery to cure Thymoma in November 2014, though he has not made any public appearance since then.

The new, transformative Eco User Interface of Super Smartphone

While high-performance, gorgeous appearance, a focus on the service-first ecological mode, and unrivaled features — such as all-metal bodies, no-frame industrial design, Qualcomm’s flagship 810 chipset, HiFi stereo components, and the highest-resolution camera — will enable Le Shi’s Super Smartphone to surpass offerings by major competitors, the core edge of the Super Smartphone is the EUI (Eco User Interface) system.

“An interactive system between users and ecosystem, EUI is cross-ecology and across terminals’ central nervous systems. EUI re-defines smartphone’s UI system, allowing smartphones to move from the intelligence age to the ecology age,” said Le Shi.

EUI will also act as the core of a complete ecosystem that transforms the existing hardware-software integrated smartphone.

“Numerous new players have entered the smartphone market, but nobody seems to put users’ core benefits first,” Jia pointed out. “At Le Shi, we firmly believe that only the ecosystem of platform+content+terminal+applications will bring changes to user experience and the way the industry operates.”

About Letv

Founded in November 2004 by Jia Yueting, a celebrated pioneer in China’s Internet landscape, Letv Group is committed to creating the “Letv Ecosystem,” a next-generation Internet engine that is vertically-integrated to offer an online platform completed with content, terminals and applications. The Group is engaged in a rich array of businesses, spanning from Internet TV, video production and distribution, smart gadgets and large-screen applications to e-commerce, eco-agriculture and Internet-linked super-electric cars, which were launched in late 2014. The Group comprises a number of subsidiaries, including Letv.com, Leshi Zhi Xin, Le Vision Pictures, Wangjiu.com, Letv Holding, Letv Investment Management and Le Mobile. In 2014, the aggregate sales of the Group amounted to approximately RMB 10 billion.

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Shanda Games Limited Enters into Definitive Merger Agreement for Going Private Transaction

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HONG KONG, April 3, 2015 /PRNewswire/ — Shanda Games Limited (NASDAQ: GAME) (“Shanda Games” or the “Company”), a leading online game developer, operator and publisher in China, announced today that it had entered into an Agreement and Plan of Merger (the “Agreement”) with Capitalhold Limited (“Parent”) and Capitalcorp Limited, a wholly owned subsidiary of Parent (“Merger Sub”).

Pursuant to the Agreement, Parent will acquire the Company for cash consideration equal to US$3.55 per ordinary share of the Company (each, an “Ordinary Share”) and US$7.10 per American Depositary Share of the Company, each representing two Class A Ordinary Shares (each, an “ADS”), in a transaction valuing the Company at approximately US$1.9 billion. This price represents a premium of 46.5% and 53.8%, respectively, over the Company’s 30- and 60-trading day volume-weighted average price as quoted by NASDAQ Global Select Market (“NASDAQ”) on January 24, 2014, the last trading date immediately prior to the Company’s announcement on January 27, 2014 that it had received a “going private” proposal.

The consideration to be paid to holders of Ordinary Shares and ADSs pursuant to the Agreement also represents an increase of approximately 2.9% from the original US$3.45 per Ordinary Share and US$6.90 per ADS offer price included in the January 27, 2014 “going private” proposal.

Immediately following consummation of the transactions contemplated by the Agreement, Parent will be beneficially owned by a consortium (the “Buyer Group”) comprising (i) Ningxia Yilida Capital Investment Limited Partnership, a limited partnership formed under the laws of the People’s Republic of China and an affiliate of the Company’s acting CEO, Mr. Yingfeng Zhang, (ii) Ningxia Zhongyincashmere International Group Co., Ltd. (“Ningxia”), a company formed under the laws of the People’s Republic of China, (iii) Orient Hongtai (Hong Kong) Limited, a company incorporated and existing under the laws of Hong Kong (“Orient Hongtai”), (iv) Orient Hongzhi (Hong Kong) Limited (“Orient Hongzhi”), a company incorporated and existing under the laws of Hong Kong and an affiliate of Orient Hongtai, (v) Hao Ding International Limited (“Hao Ding”), a company established under the laws of the British Virgin Islands, (vi) Ningxia Zhengjun Equity Investment Partnership Enterprise (Limited Partnership) (“Zhengjun Investment”), a limited partnership organized and existing under the laws of the People’s Republic of China and an affiliate of Mr. Yingfeng Zhang, (vii) Ningxia Silkroad Equity Investment Partnership Enterprise (Limited Partnership) (“Ningxia Silkroad”), a limited partnership organized and existing under the laws of the People’s Republic of China and an affiliate of Ningxia, and (viii) Ningxia Zhongrong Legend Equity Investment Partnership Enterprise (Limited Partnership) (“Zhongrong Legend”), a limited partnership organized and existing under the laws of the People’s Republic of China and an affiliate of Ningxia. Merger Sub is a direct wholly owned subsidiary of Parent. As of the date of the Agreement, the Buyer Group collectively beneficially owns approximately 75.7% of the Company’s issued and outstanding Ordinary Shares, representing approximately 90.7% of the total number of votes represented by the Company’s issued and outstanding Ordinary Shares.

Subject to the terms and conditions set forth in the Agreement, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and becoming a wholly owned subsidiary of Parent (the “Merger”), and each of the Ordinary Shares issued and outstanding immediately prior to the effective time of the Merger (including Ordinary Shares represented by ADSs) will be cancelled in consideration for the right to receive US$3.55 per Ordinary Share or US$7.10 per ADS, in each case, in cash, without interest and net of any applicable withholding taxes, except for (i) 48,759,187 Class B Ordinary Shares held by Yili Shengda Investment Holdings (Hong Kong) Company Limited, an affiliate of Mr. Yingfeng Zhang, 48,759,187 Class B Ordinary Shares held by Zhongrong Shengda Investment Holdings (Hong Kong) Company Limited, an affiliate of Ningxia, 80,577,828 Class A Ordinary Shares held by Zhongrong Investment Holdings (Hong Kong) Co., Ltd., an affiliate of Ningxia, 61,776,334 Class A Ordinary Shares held by Orient Hongtai, 61,776,335 Class A Ordinary Shares held by Orient Hongzhi, 107,438,129 Class A Ordinary Shares held by Hao Ding and any Ordinary Shares held by Parent, the Company or any of their subsidiaries immediately prior to the effective time of the Merger, each of which will be cancelled without payment of any consideration or distribution therefor, and (ii) Ordinary Shares owned by holders who have validly exercised and not effectively withdrawn or lost their rights to dissent from the Merger pursuant to Section 238 of the Companies Law of the Cayman Islands, which Ordinary Shares will be cancelled at the effective time of the Merger for the right to receive the fair value of such Ordinary Shares determined in accordance with the provisions of Section 238 of the Companies Law of the Cayman Islands.

The Buyer Group intends to fund the transaction through cash contributions from Zhengjun Investment, Ningxia Silkroad, Zhongrong Legend (collectively, the “Sponsors”) or their affiliates pursuant to equity commitment letters entered into between Parent and each Sponsor. The Sponsors have also entered into limited guarantees in favor of the Company pursuant to which they have agreed to guarantee certain obligations of Parent and Merger Sub under the Agreement.

The Company’s Board of Directors, acting upon the unanimous recommendation of the special committee of independent directors formed by the Board of Directors (the “Special Committee”), unanimously approved the Agreement, the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands in connection with the Merger and the transactions contemplated thereby (the “Transactions”), including the Merger, and resolved to recommend that the Company’s shareholders vote to approve the Agreement and the Transactions, including the Merger. The Special Committee, which is composed solely of independent directors who are unaffiliated with Parent, Merger Sub, any member of the Buyer Group or management of the Company, exclusively negotiated the terms of the Agreement with the Buyer Group with the assistance of its independent financial and legal advisors.

The Merger, which is currently expected to close in the second half of 2015, is subject to customary closing conditions, including the approval by an affirmative vote of shareholders holding two-thirds or more of the votes represented by the Ordinary Shares (including Ordinary Shares represented by ADSs) present and voting in person or by proxy as a single class at the extraordinary general meeting, which will be convened to consider the approval of the Agreement and the Transactions, including the Merger. The Buyer Group beneficially owns sufficient Ordinary Shares to approve the Agreement and the Transactions, including the Merger, and has agreed to vote in favor of such approval. If completed, the Transactions will result in the Company becoming a privately-held company and its ADSs will no longer be listed on NASDAQ.

Bank of America Merrill Lynch is serving as financial advisor to the Special Committee, Sullivan & Cromwell LLP is serving as U.S. legal advisor to the Special Committee, Haiwen & Partners is serving as PRC legal advisor to the Special Committee and Walkers Global is serving as Cayman Islands legal advisor to the Special Committee. Akin Gump Strauss Hauer & Feld is serving as legal advisor to Bank of America Merrill Lynch.

Davis Polk & Wardwell LLP is serving as U.S. legal advisor to the Company and Global Law Office is serving as PRC legal advisor to the Company.

Southwest Securities Co., Ltd. is serving as financial advisor to the Buyer Group and Wilson Sonsini Goodrich & Rosati, P.C. is serving as U.S. legal advisor to the Buyer Group.

Additional Information about the Transactions

The Company will furnish to the Securities and Exchange Commission (the “SEC”) a report on Form 6-K regarding the Transactions, which will include as an exhibit thereto the Agreement. All parties desiring details regarding the Transactions are urged to review these documents, which are available at the SEC’s website (http://www.sec.gov).

In connection with the Transactions, the Company will prepare and distribute a proxy statement to its shareholders. In addition, certain participants in the Transactions will prepare and distribute to the Company’s shareholders a Schedule 13E-3 transaction statement. These documents will be filed with or furnished to the SEC. INVESTORS AND SHAREHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE MATERIALS AND OTHER MATERIALS FILED WITH OR FURNISHED TO THE SEC WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE TRANSACTIONS AND RELATED MATTERS. In addition to receiving the proxy statement and Schedule13E-3 transaction statement, shareholders also will be able to obtain these documents, as well as other filings containing information about the Company, the Transactions and related matters, without charge, from the SEC’s website (http://www.sec.gov) or at the SEC’s public reference room at 100 F Street, NE, Room 1580, Washington, D.C. 20549. In addition, these documents can be obtained, without charge, by contacting the Company at the following address and/or phone number:

Shanda Games Limited:
No. 1 Office Building
No. 690 Bibo Road
Pudong New Area
Shanghai 201203
The People’s Republic of China
Phone: +86-21-5050-4740

The Company and certain of its directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be “participants” in the solicitation of proxies from our shareholders with respect to the Transactions. Information regarding the persons who may be considered “participants” in the solicitation of proxies will be set forth in the proxy statement and Schedule 13E-3 transaction statement relating to the Transactions when they are filed with the SEC. Information regarding certain of these persons and their beneficial ownership of the Company’s Ordinary Shares as of March 31, 2014 is also set forth in the Company’s Form 20-F, which was filed with the SEC on April 29, 2014. Additional information regarding the interests of such potential participants will be included in the proxy statement and Schedule 13E-3 transaction statement and the other relevant documents filed with the SEC when they become available.

This announcement is neither a solicitation of proxy, an offer to purchase nor a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or other filings that may be made with the SEC should the Transactions proceed.

Cautionary Statement concerning Forward Looking Statements

This news release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to how the Company’s shareholders will vote at the meeting of shareholders, the possibility that competing offers will be made, the possibility that various closing conditions to the Merger may not be satisfied or waived and other risks and uncertainties discussed in the Company’s filings with the SEC, as well as the Schedule 13E-3 transaction statement and the proxy statement to be filed by the Company in connection with the Merger. Shanda Games does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Shanda Games

Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online (MMO) games and mobile games in China and in overseas markets, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.ShandaGames.com.

Contact

Shanda Games Limited
Ellen Chiu, Investor Relations Director
Maggie Zhou, Investor Relations Associate Director
Phone: +86-21-5050-4740 (Shanghai)
Email: IR@ShandaGames.com

Christensen:
Christian Arnell
Phone: +86-10-5900-1548 (China)
Email: carnell@ChristensenIR.com

Linda Bergkamp
Phone: +1-480-614-3004 (U.S.A.)
Email: lbergkamp@ChristensenIR.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/shanda-games-limited-enters-into-definitive-merger-agreement-for-going-private-transaction-300060834.html

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BlueFocus Hits Another Milestone of Its Determined Globalization Process

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BEIJING, April 1, 2015 /PRNewswire/ — It was previously hard to imagine a China-based Communication Group can go global in such a speedy and well-organized manner. BlueFocus, this largest Communication Group (BFCG) of China, who just announced its 2014 Annual Report in which many remarkable financial results can be found, is holding its first-ever global gathering, called International Business Management Committee, formed by all the top leadership team members from both BlueFocus and its strategically owned portfolio agencies, in its Beijing headquarter, from 1st April through 2nd April.

Following a series of well-composed investments and acquisitions, the establishment of International Business Management Committee (IBMC) aims to enable productive & effective management from BlueFocus’ international portfolio standpoint and to unleash the power of meaningful corporate integration.

Robin Grant, Global Managing Director of We Are Social, now a BlueFocus company, has apparently been enjoying this win-win marriage. “The past year has been the start of a new journey for We Are Social. We chose BlueFocus as our partner because they share our global ambitions, track record of fast growth, entrepreneurial spirit and ambition. In the past 12 months, BlueFocus has helped us build the foundations for further global expansion, while allowing us to maintain the unique brand and culture that has made We Are Social so successful to date. We’re looking forward to working with BlueFocus to make 2015 our biggest year yet,” Mr. Grant commented.

As the unbeatable pilot & thought-leader in the professional service industry of Marketing & Communications in China, BlueFocus has been devoting enormous efforts to its intelligent total solution such as technology-inspired innovations and big data backed insights and ideas, which is also reflected as one guiding principle when it comes to BlueFocus’ global acquisition strategy. Fuseproject, for instance, the prestigious industry design firm, is a perfect example that illustrates how technology-inspired innovations can change people’s lives. Blab, another good example as a pioneer in the sector of predictive social intelligence in US, is demonstrating how Big Data can effectively shape the insights for future.

And now, BlueFocus, the ultimate holding company, is ready to build a scale by letting ideas travel across – “The first step is to make all the portfolio agencies know each other MUCH better,” said Holly Zheng, newly appointed President of BlueFocus International as of July 2014. ” ‘This IBMC will be primarily serving as a Steering Committee which helps set the overall growth strategy for the whole company, and we are looking at the opportunities simultaneously regarding establishing multiple working committees as well, which will focus on specific areas such as operation and business development in the near future so that we can bring the ideas to life eventually,” Holly further added.

“I am so happy to see all the fantastic leaders from all over the world to join us in Beijing. I truly believe that, with all great insights and experiences contributed by our leaders, BlueFocus, although originated in China, will definitely become an open and global platform, abound with best talents, which can offer top-notch services to our clients across the globe. And the establishment of IBMC shows clearly our strong commitment to the globalization strategy, which will certainly accelerate globalized process of BlueFocus,” said Oscar Zhao, CEO of BlueFocus Communication Group.

Ms. Holly Zheng further built, “We have created a sizable portfolio in the communications industry, including companies that specialize in PR, advertising, social media, technology and even product design. Geographically, our portfolio agencies can cover all of the key markets ranging from Asia, Europe, North America to Australia. And we believe this global footprint is critical to our multinational clients. In 2015, we expect our international business will grow much faster than the industry average, accounting for roughly 20% of our total revenue.”

Currently, BFCG and its overseas branches have established nearly a hundred offices in more than 30 countries around the world. As the only Chinese communication company with global footprint, BlueFocus reported its 2014 revenue of RMB 5,979,088,239 (US$ 965 million), up 66.83% from a year ago, and a net profit of RMB 711,883,881 (US$ 115 million), up 62.79% year-to-year.

About BlueFocus

Founded in 1996 and became the first publicly listed PR company in China in 2010, BlueFocus is the No.1 integrated communication and marketing services group in China, with around 5,000 employees globally. The company provides a wide spectrum of PR and brand management services to over 800 multinational companies and leading Chinese enterprises, covering the IT, automobile, consumer goods, real estate, finance, and entertainment industries.

BlueFocus operates in the fields of public relations, media buying, digital communication, digital advertising and e-commerce in China, including: Blue Digital (formerly BlueFocus PR) – Asia’s no. 1 PR agency, SNK – China’s No.1 online gaming advertising agency, Bojie Media, Eyes Media, Kingo Advertising and BlueStrategy.

“To Be Global” is one of BlueFocus’ core strategies. The firm controls Vision7, whose two major brands include Canadian agency leader Cossette and the international PR firm Citizen Relations, We Are Social, the world’s largest specialist social media agency in UK, and owns around 20% stake in Huntsworth, a UK-based leading international public relations group. BlueFocus’ other oversea investments include Fuseproject, a top industrial designing company in US, Metta, a leading Advertising agency in HK, Financial PR, a renowned investor relations consultancy in Asia, and Blab, a pioneer in the category of Predictive Social Intelligence in US.

Photo – http://photos.prnewswire.com/prnh/20150401/195948

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bluefocus-hits-another-milestone-of-its-determined-globalization-process-300059286.html

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ClearTV Media Debuts TVChannels4u.com Offering Television Audiences Premium Programming On the Device of Their Choice from TVs to Phones to Tablets and Laptops

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BURBANK, Calif., March 31, 2015 /PRNewswire/ — ClearTV Media (F: CLTV) officially launched TVChannels4U.com today, transforming the traditional television viewing experience with a powerful platform that brings audiences a new way to experience online videos. The entertainment network delivers a best-of-breed online content solution with professionally curated programming on channels targeted to your individual interests. TVChannels4U.com represents an unrivaled four point distribution system beyond the new site – On-Line Syndication to a vast array of premium publishers, Social Distribution through Twitter @TVChannels4U with a following of 550K, Over-the-top (OTT) via connected TVs, and Mobile.

“Our commitment to talent and premium programming prompted the launch one of the most remarkably developed video sharing websites in the space. The site was designed with the user as our single focus – whether that is a professional producer, a premium publisher or one the millions of online who view and share the eclectic variety of content TVChannels4U has to offer. TVChannels4U is a refreshing new approach to the aggregation and consumption of top-tier online content,” said David Tetreault, COO, ClearTV Media.

The navigation tools that brings TVChannels4U.com alive allows viewers to sit back and engage with programming from a variety of genres that include – Entertainment, Lifestyle, Sports, Music, Travel and Style. TVChannels4U.com steps into its lifecycle in the midst of the myriad of digital milestones that ran through 2014 and now into 2015 – traditional TV ratings continue to experience pronounced declines as the consumption of premium programming continues to migrate toward emerging platforms.

According to the recent report – U.S. Digital Future In Focus 2015 published by comScore – across every age demographic, there is a substantially higher percentage of multi-platform and mobile-only Internet users than in the previous year. Digital video viewing still occurs most frequently via desktop computer, but mobile video viewing is on the rise. Nearly 7 in 8 Americans watch online video with more than half doing so daily. Slightly below half of smartphone and tablet users watch video on all their devices, with about 1 in 10 doing so daily, suggesting there is room for significant growth. TVChannels4U has assembled a premium publisher network that distributes to many of the most highly trafficked websites online providing these sites with top-tier programming for a collective audience in the multi-millions monthly. TVChannels4U.com provides high-value content producers a distribution outlet that guides their content through the clutter and noise of traditional distribution platforms, and directly into the arms of viewers who know what they want and when they want to see it. Over-the-top (OTT) devices such as Apple TV, Google Chromecast, and Microsoft Xbox are also gaining adoption and driving extended engagement of digital viewing. The validity that comScore brings to the table showcases the rapid nature of the transformation taking place in programming and distribution, TVChannels4U.com syncs up with this sea change and provides premium programming viewed through premium distribution channels across all devices.

About ClearTV Media
Clear TV Media delivers customized TV stations to dynamic Away-From-Home environments bringing airports, healthcare facilities, retailers, and hotel and resorts a new marketing tool that will target, reach and engage a world on-the-go. Clear TV Media has the power to connect with upscale demographics in ways never before imagined by infusing premium content with social media technology. Clear TV Media recently launched TVChannels4U.com. TVChannels4U drives talent and customized programming in the new age of the always-on-demand, mobile and social world. We create, produce and curate the best in Social TV – providing established and new producers with the tools to make and distribute TV series’ like never before. TVChannels4U entertains and engages viewers with original TV programming from a wide variety of genres – Comedy, Drama, News, Sports, Education and Information. To learn more please visit www.cleartvmedia.com, www.tvchannels4u.com or Twitter @TVChannels4U.

Press Contact:

ClearTV Media
Ronnie Seidel, 818-351-7858
press@cleartvmedia.com

Video – https://www.youtube.com/watch?v=B7cTz4DYnNk
Logo – http://photos.prnewswire.com/prnh/20150331/195509LOGO

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Game Power 7 Recognised for Visionary Innovation Leadership Award by Frost & Sullivan

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DUBAI, United Arab Emirates, March 30, 2015 /PRNewswire/ — Game Power 7 was recently recognised with the Frost & Sullivan 2015 Visionary Innovation Leadership Award for Digital Game Publishing in the Middle East (ME), at the annual Growth, Innovation and Leadership (GIL) 2015: Middle East held in Dubai last month. Game Power 7 has reinvented the gaming landscape in the MENA by developing and publishing the MMO (Massively Multiplayer Online) and the MMO role-playing games (MMORPG) technology, which remoulds the key attributes of games including the storyline, concepts, characters, traditions, etc. to suit cultural sensibilities of approximately 70 Million online gaming enthusiasts.

Mr. Fadi Mujahid, CEO, Game Power 7, said, “The essence of game ‘culturalization’ aids to connect with the Arabic youth directly and, thereby, facilitates profound engagement with them. We emphasise on player satisfaction and customer loyalty as the two fundamental pillars for success of the company in the online gaming arena in the coming years.”

From designing the wardrobe to modifying characters, Game Power 7 ensures that players get a feeling of being at home rather than experiencing alienation due to influence of other cultures in the virtual world. This has led to the company witnessing an exponential growth in the number of online Arabic gamers connecting to experience the unique and innovative games developed by Game Power 7. Looking at the popularity of the mobile gaming segment, and backed by an e-payment network that covers more than 19 countries the company is coming up with free mobile games on both Android and iOS platforms in Arabic language. With over one million registered gamers, Game Power 7 believes that the market potential exceeds 25 million gamers with estimated revenue of USD 500 Million Dollars annually. The company has achieved a seven digits total profit during the past five years while maintaining an annual profit growth of 10 per cent.

“It takes a spirited initiative and relentless efforts to offer gamers something new and original from time to time. GamePower7 has been doing exactly that since 2007 by being the first Arab gaming company to develop and publish online Massively Multiplayer Online (MMO) Games, MMO Role Playing Games (MMORPG) and also launch online game ‘culturalization’. The Arabic online gaming market is witnessing an exponential growth and being the pioneers in online Arabic gaming gives GamePower7 a strong advantage over its competitors,” said Satyajit Lele, Research Analyst, Best Practices Team, Frost & Sullivan.

Frost & Sullivan’s Best Practices Awards recognises companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices.

About Game Power 7:
The company was founded in 2007 as the first leading Arabic company in the field of online and mobile gaming. As a subsidiary company of Global New Age Media Group, Game Power7 presented innovative products based on localising games from different cultures to fit the Arabic culture, tradition, and local values. Relying on local talents, the company released a variety of exceptional games starting with the most popular in 2008 Arabic Rapplez, which was the first online Arabic game. The game population exceeded one million players. Game Power 7 has operation centres in three Arab countries, while the headquarters are located in Dubai. As part of the belief in the importance of community management, the company established a Culturalization and Cultural Content Department and Community Management QA Department. As part of the company’s integrated corporate social responsibility vision, the company supports several social programmes for the youth and local communities.

For more information on game Power 7, please visit: http://www.gamepower7.com

About Frost & Sullivan:
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including research, analysis, strategy, vision, innovation, and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

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ENT Fashion GAM MEN

The9 Limited Files Annual Report on Form 20-F for Fiscal Year 2014

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SHANGHAI, March 30, 2015 /PRNewswire-FirstCall/ — The9 Limited (NASDAQ: NCTY) (“The9”), an online game developer and operator, announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2014 with the U.S. Security and Exchange Commission on March 26, 2014. The annual report, which contains its audited financial statements, can be accessed on the SEC’s website at http://www.sec.gov as well as on the Company’s investor relations website: http://www.the9.com/en/ . Shareholders may receive a hard copy of the annual report free of charge upon request.

About The9

The9 Limited is an online game developer and operator in China. The9 develops and operates, directly or through its affiliates, its proprietary MMO, web and mobile games including Firefall, TianTianWanDiaoChan and Dao Feng. In 2010, The9 established its wireless business unit to focus on mobile internet business. In 2013, The9 formed a joint venture with Shanghai ZTE to develop and operate home entertainment set top box business.

For further information, please contact:

Ms. Phyllis Sai
Manager, Investor Relations
The9 Limited
Tel: +86 (21) 5172-9990
Email: IR@corp.the9.com
Website: http://www.corp.the9.com/

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the9-limited-files-annual-report-on-form-20-f-for-fiscal-year-2014-300057426.html

ENT Fashion GAM MEN

The9 Limited Announces Unaudited Financial Information as of and for the Six Months Ended December 31, 2014

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SHANGHAI, March 27, 2015 /PRNewswire-FirstCall/ –The9 Limited (NASDAQ: NCTY) (“The9”), an online game developer and operator, announced its unaudited financial results for the six months ended December 31, 2014 today.

Financial Highlights:

  • Net revenues in the second half of 2014 amounted to RMB36.9 million (US$5.9 million), representing an increase of 34.4% from RMB27.4 million (US$4.4 million) in the first half of 2014 and a decrease of 37.2% from RMB58.7 million (US$9.5 million) in the second half of 2013.
  • In the second half of 2014, net profit attributable to holders of ordinary shares was RMB34.2 million (US$5.5 million). In the first half of 2014 and the second half of 2013, net loss attributable to holders of ordinary shares was RMB141.9 million (US$22.9 million) and RMB244.4 million (US$39.4 million), respectively.

Management Comments:

Jun Zhu, Chairman and Chief Executive Officer of The9, said, “Red 5 launched Firefall in July 2014 in North America and Europe. We have high expectations for Firefall in the China market. In August 2014, Shanghai Oriental Pearl Culture Development Co. Ltd., a wholly-owned subsidiary of Shanghai Oriental Pearl (Group) Co., Ltd. (SH: 600832), closed its investment in Red 5 and became a minority shareholder of Red 5. Also in August 2014, Qihoo 360 Technology Co., Ltd. (NASDAQ: QIHU) and us established a 50-50 joint venture System Link Corporation Limited to publish and operate Firefall in China for a five-year term. Under this license agreement, System Link is expected to pay to us no less than an aggregate of US$160 million including license fee and royalties during the term of the agreement. All these show the great potential of Firefall in China. We are dedicating our best resources to prepare for the launch of Firefall in China and we target to launch Firefall in China in the second half of 2015. In addition, we are also planning to launch several mobile games in 2015. In August 2014, we sold Huopu Cloud, a subsidiary which developed and held a proprietary web game, for a total consideration of RMB200 million. This sale has proven our in-house game development capability has been recognized by the market.”

Discussion of The9’s Unaudited 2014 Second Half Results

Net Revenues

Our net revenues in the second half of 2014 amounted to RMB36.9 million (US$5.9 million), representing an increase of 34.4% from RMB27.4 million (US$4.4 million) in the first half of 2014 and a decrease of 37.2% from RMB58.7 million (US$9.5 million) in the second half of 2013. The increase over the first half of 2014 was mainly due to increase of revenue from Firefall in North America and Europe, and partly offset by decrease of revenue from various MMO, web and social games in China. The decrease from the second half of 2013 was mainly due to the decrease of revenue from Planetside 2.

Gross Loss

Our gross loss in the second half of 2014 amounted to RMB7.2 million (US$1.2 million), compared with RMB14.3 million (US$2.3 million) and RMB5.2 million (US$0.8 million) in the first half of 2014 and in the second half of 2013, respectively. The gross loss in the second half of 2014 reflected lower level of revenue generated coupled with the continued incurrence of a relatively fixed portion of our costs, such as overhead, depreciation and rental charges.

Operating Expenses

In the second half of 2014, our operating expenses, excluding gain from disposal of subsidiaries, were RMB151.8 million (US$24.5 million), which decrease by 0.8% from RMB153.0 million (US$24.7 million) in the first half of 2014 and decrease by 39.9% from RMB252.6 million (US$40.7 million) in the second half of 2013. The decrease compared to the first half of 2014 was primarily due to the net effect of the increase in marketing expenses in the second half relating to the launch of Firefall in the North America and Europe, and reversal of an allowance provided on a long-term receivable from a supplier recognized in the second half of 2013. The decrease compared to the second half of 2013 was primarily due to the cost cutting on product development, marketing expenses and general and administrative expenses, and the reversal of an allowance provided on a long-term receivable from a supplier recognized in the second half of 2013. In addition, in the first half of 2014, we also recorded a gain on disposal of subsidiaries of RMB165.4 million (US$26.7 million) in the second half of 2014 in connection with the disposal of Huopu Cloud Computing Terminal Technology Co., Ltd., a wholly-owned subsidiary, as well as certain other subsidiary, which was recorded as a deduction to operating expense.

Interest Income

Interest income in the second half of 2014 was RMB1.9 million (US$0.3 million), compared to RMB1.5 million (US$0.2 million) in the first half of 2014 and RMB2.6 million (US$0.4 million) in the second half of 2013. The fluctuation of interest income was typically in line with our cash balances.

Other Income (Expenses), Net

Other expenses in the second half of 2014 was RMB5.4 million (US$0.9 million), compared to other income of RMB3.3 million (US$0.5 million) in the first half of 2014 and other income of RMB7.0 million (US$1.1 million) in the second half of 2013. Other expenses in the second half of 2014 mainly represented foreign exchange losses. Other income in the first half of 2014 mainly represented foreign exchange gains. Other income in the second half of 2013 mainly represented a refund of game license fee.

Net Profit (Loss) attributable to holders of ordinary shares

In the second half of 2014, net profit attributable to holders of ordinary shares was RMB34.2 million (US$5.5 million). In the first half of 2014 and the second half of 2013, net loss attributable to holders of ordinary shares was RMB141.9 million (US$22.9 million) and RMB244.4 million (US$39.4 million), respectively.

Basic net profit per shareand per ADS in the second half of 2014 was RMB1.48 (US$0.25), compared to basic net loss per share of RMB6.13 (US$0.99) in the first half of 2014 and basic net loss per share of RMB10.64 (US$1.71) in the second half of 2013.

Currency Convenience Translation

The translation of Renminbi (RMB) into US dollars (US$) in this press release are presented solely for the convenience of the readers at the noon buying rate in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the H.10 weekly statistical release of the Federal Reserve Board as of December 31, 2014, which was RMB 6.2046 to US$1.00. Such translations should not be construed as representations that the RMB amounts represents, or have been or could be converted into, US$ at that or any other rate. The percentages stated in this press release are calculated based on the RMB amounts.

About The9 Limited

The9 Limited is an online game developer and operator in China. The9 develops and operates, directly or through its affiliates, its proprietary MMO, web and mobile games including Firefall, TianTianWanDiaoChan and Dao Feng. In 2010, The9 established its wireless business unit to focus on mobile internet business. In 2013, The9 formed a joint venture with Shanghai ZTE to develop and operate home entertainment set top box business.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of 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,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. The9 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about The9’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, political and economic policies of the Chinese government, the laws and regulations governing the online game industry, information disseminated over the Internet and Internet content providers in China, intensified government regulation of Internet cafes, The9’s ability to retain existing players and attract new players, license, develop or acquire additional online games that are appealing to users, anticipate and adapt to changing consumer preferences and respond to competitive market conditions, and other risks and uncertainties outlined in The9’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For further information, please contact:

Ms. Phyllis Sai
Manager, Investor Relations
The9 Limited
Tel: +86 (21) 5172-9990
Email: IR@corp.the9.com
Website: http://www.corp.the9.com/

— Tables follow —

THE9 LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(Expressed in Renminbi – RMB and US Dollars – US$, except share data)

Six month
ended Jun 30

Six month
ended December 31

2014

2013

2014

2014

RMB
(unaudited)

RMB
(unaudited)

RMB
(unaudited)

US$
(Note)

Revenues:

Online game services

22,199,785

52,415,966

33,217,915

5,353,756

Other revenues

5,547,325

7,069,176

3,874,540

624,462

27,747,110

59,485,142

37,092,455

5,978,218

Sales Taxes

(326,865)

(774,716)

(235,809)

(38,005)

Net Revenues

27,420,245

58,710,426

36,856,646

5,940,213

Cost of revenue

(41,706,220)

(63,913,645)

(44,076,349)

(7,103,818)

Gross loss

(14,285,975)

(5,203,219)

(7,219,703)

(1,163,605)

Operating Expenses:

Product development

(79,550,315)

(100,558,324)

(76,702,721)

(12,362,235)

Sales and marketing

(18,270,728)

(49,663,417)

(33,487,372)

(5,397,185)

General and administrative

(51,629,447)

(66,923,309)

(59,527,803)

(9,594,139)

Impairment on equipment , intangible assets, other assets and allowance(reversal of allowance) of long-term receivable

(3,555,845)

(35,466,122)

17,927,763

2,889,431

Gain on disposal of subsidiaries

0

0

165,392,382

26,656,413

Total operating expenses

(153,006,335)

(252,611,172)

13,602,249

2,192,285

Other operating Income

50,000

55,372

25,000

4,029

Income (loss) from operations

(167,242,310)

(257,759,019)

6,407,546

1,032,709

Investment income from cost method investment

0

0

1,142,353

184,114

Interest income, net

1,482,111

2,605,392

1,932,448

311,454

Other income(expense),net

3,276,714

6,985,096

(5,382,192)

(867,452)

Profit (Loss) before income tax expense, gain on investment disposal, impairment loss on investments and share of loss in equity investments

(162,483,485)

(248,168,531)

4,100,155

660,825

Income tax expense

0

0

0

0

Profit (Loss) before gain on investment disposal, impairment loss on investments and share of loss in equity investments

(162,483,485)

(248,168,531)

4,100,155

660,825

Gain on disposal of equity investee and available-for-sale investment

9,403,451

0

23,750,001

3,827,805

Impairment loss on investments

0

(15,181,566)

0

0

Share of loss in equity investments

(879,476)

(411,547)

(2,833,054)

(456,606)

Net profit (loss)

(153,959,510)

(263,761,644)

25,017,102

4,032,024

Net loss attributable to noncontrolling
interest

(12,046,743)

(19,401,046)

(9,396,578)

(1,514,454)

Net loss attributable to redeemable noncontrolling interest

0

0

(20,876,617)

(3,364,700)

Net profit (loss) attributable to The9 Limited

(141,912,767)

(244,360,598)

55,290,297

8,911,178

Accretion on redeemable noncontrollling interest

0

0

21,076,744

3,396,955

Net profit (loss) attributable to holders of ordinary shares

(141,912,767)

(244,360,598)

34,213,553

5,514,223

Net profit (loss) attributable to holders of ordinary shares per share

– Basic

(6.13)

(10.64)

1.48

0.24

Weighted average number of shares outstanding

– Basic

23,146,859

22,968,487

23,182,241

23,182,241

THE9 LIMITED

CONSOLIDATED BALANCE SHEETS INFORMATION

(Expressed in Renminbi – RMB and US Dollars – US$)

As of December 31, 2013

As of December 31, 2014

RMB

RMB

US$

(audited)

(unaudited)

(unaudited)

Assets

Current Assets

Cash and cash equivalents

156,987,201

181,482,300

29,249,638

Accounts receivable

19,138,096

11,804,750

1,902,581

Advances to suppliers, net

4,525,549

733,339

118,193

Prepayments and other current assets, net

32,464,598

56,573,321

9,117,964

Prepaid royalties

4,878,579

0

0

Deferred costs

68,217

9,745

1,571

Amounts due from a related party

0

5,250,000

846,146

Total current assets

218,062,240

255,853,455

41,236,093

Restricted cash

700,000

0

0

Investments in equity investees

50,848,141

39,223,925

6,321,749

Property, equipment and software, net

50,439,400

36,346,230

5,857,949

Goodwill

9,710,854

9,746,054

1,570,779

Intangible assets, net

128,643,824

97,539,341

15,720,488

Land use right, net

72,194,206

70,273,296

11,325,999

Other long-term assets, net

16,080,483

8,348,409

1,345,519

Total Assets

546,679,148

517,330,710

83,378,576

Liabilities and Shareholders’ Equity

Current Liabilities

Accounts payable

69,376,348

40,213,660

6,481,266

Other taxes payable

1,238,852

932,431

150,281

Advances from customers

18,896,049

16,833,165

2,713,014

Amounts due to related parties

4,799,753

6,304,956

1,016,174

Deferred revenue

20,113,256

20,434,962

3,293,518

Refund of game points

169,998,682

169,998,682

27,398,814

Other payables and accruals

45,669,488

41,872,851

6,748,679

Total current liabilities

330,092,428

296,590,707

47,801,746

Long-term accounts payable

21,110,517

18,992,201

3,060,987

Deferred tax liabilities, non-current

5,343,060

5,362,427

864,266

Total Liabilities

356,546,005

320,945,335

51,726,999

Redeemable Noncontrolling Interest

0

131,497,104

21,193,486

Ordinary shares (US$0.01 par value;
23,146,859 and 23,201,601 shares issued and
outstanding as of December 31, 2013 and
December 31, 2014, respectively)

1,881,784

1,885,153

303,832

Additional paid-in capital

2,152,320,786

2,075,900,461

334,574,422

Statutory reserves

28,071,982

28,071,982

4,524,382

Accumulated other comprehensive loss

(8,987,041)

(8,638,604)

(1,392,290)

Accumulated deficit

(1,912,569,874)

(1,999,192,344)

(322,211,318)

The9 Limited shareholders’ equity

260,717,637

98,026,648

15,799,028

Noncontrolling interests

(70,584,494)

(33,138,377)

(5,340,937)

Total equity

190,133,143

64,888,271

10,458,091

Total liabilities, redeemable noncontrolling interest and equity

546,679,148

517,330,710

83,378,576

Note: The United States dollar (“US dollar” or “US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers at the rate of US$1.00 =RMB6.2046, representing the noon buying rate in the City of New York for cable transfers of RMB, as certified for customs purposes by the Federal Reserve Bank of New York, on December 31, 2014.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the9-limited-announces-unaudited-financial-information-as-of-and-for-the-six-months-ended-december-31-2014-300056430.html

ENT ERN Fashion GAM MEN

NetDragon Announces Fourth Quarter and Fiscal Year 2014 Financial Results

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Strong Revenue and Operational Metrics Growth

HONG KONG, March 26, 2015 /PRNewswire/ — NetDragon Websoft Inc. (“NetDragon” or “the Company”) (Hong Kong Stock Code: 0777), a leading developer and operator of online games and mobile internet platforms in China, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2014. A conference call and webcast is scheduled at 8 p.m. Hong Kong Time on March 26, 2015 to discuss the results and recent business developments.

Fiscal Year 2014 Financial Highlights

  • Revenue was RMB962.8 million, an increase of 8.9% from RMB 884.5 million last year.
  • Operating profit was RMB252.0 million, an increase of 24.3% from RMB202.8 million last year.
  • Profit from continuing operations attributable to owners of the Company was RMB176.7 million, an increase of 7.5% from RMB164.4 million last year.
  • Basic and diluted earnings per share were RMB34.77 cents and RMB34.22 cents, respectively.

Fourth quarter 2014 Financial Highlights

  • Revenue was RMB282.9 million, an increase of 21.6% quarter-over-quarter and 23.5% year-over-year.
  • Gross profit was RMB246.5 million, an increase of 17.9% quarter-over-quarter and 19.7% year-over-year.
  • Operating profit was RMB4.0 million, a decrease of 93.2% quarter-over-quarter and an increase from an operating loss of RMB1.7 million during the same period of 2013.
  • Non-GAAP operating profit[1] was RMB13.5 million, a decrease of 79.7% quarter-over-quarter and an increase of 19.4% year-over-year.
  • Loss attributable to owners of the Company was RMB19.4 million, compared to profit attributable to owners of the Company of RMB52.6 million during the previous quarter. Non-GAAP profit attributable to owners of the Company, which excludes several non-core operational items, was RMB6.8 million.
  • Basic and diluted losses per share were RMB3.78 cents and RMB3.82 cents, respectively.
  • The Board of Directors has proposed a final dividend of HK$0.20 per share subject to the approval by shareholders at the Annual General Meeting.

Fourth quarter 2014 Operational Highlights[2]

  • Peak concurrent users (“PCU”) for online games were 642,000.
  • Average concurrent users (“ACU”) for online games were 301,000.

“We experienced a healthy 8.9% increase in revenue to RMB962.8 million during the year as we further consolidated our market position in the gaming space and pushed forward with the development of our online education platform,” commented Mr. Dejian Liu, Chairman and Executive Director of NetDragon. “Our online games business continues to gain strong growth momentum during the quarter with peak concurrent users reaching 642,000 as revenues increased 6.7% year-over-year to RMB221.5 million. One of our newest games, Calibur of Spirit, continues to gain strong user traction following its selection for the World Cyber Arena last fall. We signed an exclusive China licensing agreement with Tencent and officially launched the game in January 2015 where it achieved record-high MAU of 7 million that month and monthly gross revenue over RMB21.0 million in February 2015. With such a strong performance at the beginning of its lifespan, we are confident that this game will develop into a substantial long-term new revenue stream as large scale marketing campaigns get underway and new updates are launched throughout the year. We launched new expansion packs for our flagship games during the period including an English version for Conquer Online which generated an 11-year high monthly revenue in December 2014. We are also excited to beta-launch Tiger Knight later this year.”

“We continued to incubate our mobile games business during the quarter and have seen encouraging progress from Eudemons Online Pocket Version which was officially launched in January 2015 and is expected to register over RMB10 million in monthly gross revenue in March 2015. The iOS and Android versions of Blade & Sword continue to make steady progress through the various stages of development while the Arabic version of The Pirate remains extremely popular across the Middle East and North Africa where it is expected to continue to grow as new updates are launched.” 

“NetDragon’s new strategic business focus continues to be its online education business which completed a round of series A preference shares funding of US$52.5 million in February 2015. The participation of globally renowned investors demonstrates the confidence they have in our unique position to leverage our proven world-class mobile internet and gaming expertise, large-scale technology resources and team infrastructure to build an online and mobile education ecosystem. We are making very solid progress in the design and development of our educational products, and remain on track to gradually roll them out as each development milestone is achieved. We expect to make exciting announcements in the coming months regarding our overall product strategy and the unique value proposition we can create for students, educators and parents.” 

Mr. Ben Yam, Chief Financial Officer, added, “Non-GAAP profit for the quarter was RMB4.1 million which is a blended figure combining our highly profitable gaming business and our online education business which is currently in product development stage. During the quarter, our online games business achieved revenue growth of 6.7% year-over-year and 9.8% sequentially with a stable operating cost structure. We also continue to invest heavily in the development of educational products which requires significant investments in staff costs and has reduced the blended profitability in the short-term. These investments however, are the best use of our cash and demonstrate our commitment to building an online education business that will become another cornerstone for our long-term success.”

[1] See the ‘Non-GAAP Financial Measures’ section at the bottom of this release for more details

[2] PCU and ACU include the Company’s new micro-client game Calibur of Spirit

Fourth quarter 2014 Unaudited Financial Results

Revenue

Revenue was RMB282.9 million, an increase of 21.6% from RMB232.7 million in the previous quarter and 23.5% from RMB229.0 million during the same quarter last year.

Revenue from online games and other business generated from China was RMB229.0 million, an increase of 16.9% from RMB195.9 million in the previous quarter and 11.6% from RMB205.2 million in the same quarter last year. The increase in revenue was mainly due to the strong performance of Eudemons Online and Calibur of Spirit.

Revenue from online games and other business generated from overseas markets was RMB53.9 million, an increase of 46.2% from RMB36.8 million in the previous quarter and 126.0% from RMB23.8 million in the same quarter last year due to the growth in the Company’s mobile solutions and marketing business operated by its Hong Kong-based subsidiary Cherrypicks.

Gross profit and gross margin

Gross profit was RMB246.5 million, an increase of 17.9% from RMB209.2 million in the previous quarter and 19.7% from RMB205.9 million in the same quarter last year. Gross margin was 87.2%, compared with 89.9% in the previous quarter and 89.9% in the same quarter last year. The decreases in gross margin were partly due to the inclusion of Cherrypicks which generates lower gross margins when compared with NetDragon’s online games business.

Operating expenses

Selling and marketing expenses were RMB51.2 million, representing an increase of 32.8% from RMB38.6 million in the previous quarter, and 61.6% from RMB31.7 million during the same period last year. The increase in selling and marketing expenses was mainly due to the increase in advertising and promotional expenses of Eudemons Online and Calibur of Spirit.

Administrative expenses were RMB120.9 million, representing an increase of 55.9% from RMB77.5 million during the third quarter of 2014 and a decrease of 14.2% from RMB140.9 million during the same period last year. The quarter-over-quarter increase in administrative expenses was mainly due to the increase in (i) staff costs; and (ii) depreciation and amortization. The year-over-year decrease in administrative expenses was mainly due to the (i) decrease in exchange loss on foreign currencies; and (ii) expenditure of domain name during the same period last year.

Development costs were RMB89.3 million, representing an increase of 32.6% from RMB67.3 million during the third quarter of 2014 and an increase of 100.8% from RMB44.5 million during the same period last year. The sequential and year-over-year increases in development costs was mainly due to increases in (i) staff costs; and (ii) outsourcing fees.

Other expenses were RMB12.0 million, representing an increase of 226.7% from RMB3.7 million during the third quarter of 2014 and 126.4% from RMB5.3 million during the same period last year. The sequential and year-over-year increases in other expenses was mainly due to the increase in allowances on trade receivables.

Operating profit

Operating profit from continuing operations was RMB4.0 million, a decrease of 93.2% from RMB57.7 million in the third quarter of 2014, and an increase from an operating loss of RMB1.7 million in the same quarter last year.

Taxation

Taxation was RMB9.4 million, an increase of 126.6% from RMB4.2 million during the third quarter of 2014 and a decrease of 43.7% from RMB16.8 million during the same quarter last year. The sequential increase in taxation was mainly due to an under provision for tax in 2014 while the year-over-year decrease was mainly due to the decrease in taxable profit.

(Loss) profit for the period from continuing operations

Loss from continuing operations was RMB22.2 million, compared with profit of RMB52.4 million in the previous quarter and loss of RMB2.7 million in the same quarter last year.

Non-GAAP profit from continuing operations, which excludes a net loss on held-for-trading investments (which tend to fluctuate quarter-to-quarter), an exchange loss and amortization of intangible assets resulting from the acquisition of Cherrypicks last year, was RMB4.1 million during the fourth quarter of 2014. 

Liquidity

As of December 31, 2014, NetDragon had bank deposits, bank balances, cash, pledged bank deposits and held-for trading liquid investments of approximately RMB3,484.8 million, compared with RMB4,483.7 million as of December 31, 2013. 

Business Review and Outlook

Games

On October 26th, 2014, NetDragon began beta testing “Goddess Era,” a new expansion pack for Eudemons Online that introduces the “Goddess Gifts” system and allows players to enhance their character’s attributes free of charge. The new expansion pack, which enhances gameplay and increases user stickiness, is expected to begin closed beta testing during the first half of 2015. Eudemons Online celebrated its anniversary in March 2015 with in-game activities. Conquer Online, the Company’s other flagship title, also launched a new expansion pack “King of Kungfu” in October 2014. By adding new classes to the game, the expansion pack provides more excitement for players. The English, French, Spanish and Arabic versions of Conquer Online’s expansion pack were also launched overseas. A class-updated version of Conquer Online — The Rhapsody of Ice and Fire: Taoist Ascending will be launched during the first half of 2015 and is expected to maintain the game’s market share overseas. Revenue generated by the English version of Conquer Online in December 2014 reached an 11-year high as a result of the enhanced competitiveness of the game in various countries and regions worldwide.

Calibur of Spirit, NetDragon’s first MOBA web micro-client game, officially began open-beta testing on January 16, 2015, achieving MAU of 7 million that month and over RMB21.0 million in monthly gross revenue in February 2015 demonstrating the Company’s world-class game-design and development capabilities. The game was previously selected for the 2014 World Cyber Arena held in Yinchuan, China in October 2014. Marketing and promotional events have rapidly increased the game’s operational metrics. The Company also signed an exclusive China licensing agreement for Calibur of Spirit with Tencent at the end of 2014. NetDragon is confident that revenue from this game will grow substantially as large scale publicity campaigns get underway. The Portuguese and Spanish versions of Calibur of Spirit have already been completed and are scheduled to begin testing in Latin America and Europe in the first half of 2015. The Company’s in-house developed 3D action war game Tiger Knight began its first round of internal beta testing during the fourth quarter of 2014 and will begin its second round during the second quarter of 2015. A new expansion pack for Way of the Five was launched during the quarter along with annual celebration activities which began on March 7, 2015.

NetDragon continued to release content updates for its mobile game including one for the Arabic version of The Pirate in the fourth quarter of 2014 in an effort to solidify its existing player base as well as to seek out new players. This resulted in new record high monthly gross revenue in October 2014. The Company is committed to its strategy of developing high-quality products and continues to develop mobile products to ensure their success in an increasingly competitive market. The iOS version of Blade & Sword, NetDragon’s self-developed mobile 2.5D martial arts role-play game, finished closed beta testing in November 2014 and is currently undergoing closed beta testing of its iOS version with the Android version expected to begin closed beta testing in the first quarter of 2015. Martial Overlord, a mobile 3D martial arts action game, began channel testing in November 2014 and its second round of beta-testing in March 2015. The iOS version of Eudemons Online Pocket Version was officially launched on Apple’s AppStore in January 2015 with open beta testing for the Android version beginning at the same time. Waku & Maou, is a real-time strategy-based collectible mobile card game which began being operated by China’s leading mobile game publisher in January 2015. The Android version began its first round of closed beta testing in January 2015 with open beta testing for the Android and iOS version expected to begin during the first half of 2015.

Online and Mobile Education 

The Company made very strong progress in research and development, pedagogy integration, content partnership and acquisition, sales channel build-out and M&A discussions for its online and mobile education business during the fourth quarter and fiscal year 2014.

Research & Development — The Company’s educational product design and R&D team currently comprises of over 350 staff. With world-class leadership, the team focuses on the design and development of both software and hardware, and over the course of 2014, has achieved many milestones in the development of high-quality and differentiated software. The Company’s 101 student tablet, which has also gone through multiple design iterations, will be commercially launched during the third quarter of 2015. The Company’s product development roadmap to create a holistic, integrated total-solution for online and mobile education remains unchanged. The initial version of the commercialized product will be focused on enabling best-in-class interconnectivity in the classroom, and will create true value through a transformational yet easy-to-learn educational solution for teachers and students. The Company will update the market when more information on product launches is available. In addition, the Company expects to officially open a research lab in Beijing in the coming months to extend its talent acquisition reach. The current plan is to scale the office to hundreds of R&D staff within one to two years to accelerate educational research and development.

Pedagogy Integration — NetDragon continues to deepen its partnership with Beijing Normal University, China’s top education university, to ensure the most effective pedagogy is being developed and integrated based on collaboration with proven hands-on educators. In November 2014 NetDragon, signed an agreement with Beijing Normal University to jointly research e-classroom design in an effort to develop insight into how software and hardware can best be integrated with various teaching models in a classroom learning environment. One March 18, 2015, NetDragon’s education subsidiary and Beijing Normal University also announced the establishment of Smart Learning Institute which will provide a unique platform to integrate the most advanced e-pedagogy with NetDragon’s mobile internet expertise and technological know-how. The Company believes the accumulation and understanding of pedagogy through its partnerships with top-tier universities and institutions including Beijing Normal University will form a significant barrier to entry.

Content Partnerships — NetDragon signed a MOU in November 2014 with a subsidiary of Pearson, the globally renowned leading education company, and Beijing Normal University, to develop a smart education solution. This collaboration will leverage Pearson’s rich K12 educational content resources to build China’s leading integrated smart education solution. In addition, the Company is also in discussions with numerous major publishers and content partners to enrich the content on its platform.

Channel Build-Out — The Company is in the process of building a nationwide school distribution network for its educational products. Currently, the Company is in discussion with over 20 regional and local distributors and has secured distribution agreements with a number of them. The Company is also in active discussions with several channel partners in addition to conventional distributors.  

M&A — NetDragon is in advanced discussions with multiple major acquisition targets in the online education space. If such acquisitions materialize, the Company’s competitive position in the market will further be enhanced.

Fundraising — In February 2015, NetDragon’s education subsidiary closed a Series A equity fundraising round of US$52.5 million led by IDG, Vertex (a Temasek subsidiary) and Alpha Animation, at a valuation of US$477.5 million. 

Other developments —Netdragon was officially admitted to the Education Informatization Standard Committee under the Ministry of Education in November 2014. Membership will allow NetDragon to participate in the forming of technology standards, which will be conducive in developing the right products that meet or exceed regulatory standards. NetDragon is one of a very select few tier-one mobile internet companies who are members of the committee.

Non-GAAP Financial Measures

To supplement the consolidated results of the Company prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), the use of certain non-GAAP measures is provided solely to enhance the overall understanding of the Group’s current financial performance. These non-GAAP measures are not expressly permitted measures under HKFRSs and may not be comparable to similarly titled measures for other companies. The non-GAAP financial measures of the Group exclude share-based payments expense, amortisation of intangible assets arising from acquisition of subsidiaries, interest income on pledged bank deposits, exchange gain (loss) on pledged bank deposits, secured bank borrowings and redeemable convertible preferred shares, net gain (loss) on derivative financial instruments, finance costs and gain on disposal of subsidiaries (net of related income tax).

Management Conference Call

NetDragon will host a management conference call and webcast to review its the fourth quarter and fiscal year 2014 results on Thursday, March 26, 2015, at 8pm Hong Kong time.

Details of the live conference call are as follows:

International Toll                              

65-6723-9381

US Toll Free                                       

1-866-519-4004

Hong Kong Toll Free                          

800-906-601

China Toll Free (for fixed line users)      

800-819-0121

China Toll Free (for mobile users)         

400-620-8038

Passcode                                           

NetDragon

A live and archived webcast of the conference call will be available on the Investor Relations section of NetDragon’s website at http://ir.netdragon.com/investor/ir_events.shtml. Participants in the live webcast should visit the aforementioned website 10 minutes prior to the call, then click on the icon for “4Q and Fiscal Year 2014 Results Conference Call” and follow the registration instructions.

About NetDragon

NetDragon Websoft Inc. (HKSE: 0777) is a leading innovator and creative force in China’s online games and mobile internet industries. Established in 1999, NetDragon is leading developer in the mobile internet segment with a highly successful track record which includes the development of flagship MMORPGs such as Eudemons Online and Conquer Online, China’s number one online gaming portal, 17173.com, and China’s most influential smartphone app store platform, 91 Wireless, which was sold to Baidu in what was at the time the largest internet M&A transaction in China in 2013. Being a China’s pioneer in overseas expansion, NetDragon directly operates a number of game titles in over 10 languages internationally since 2003. NetDragon continues to strive for developing mobile games and software applications for users. In recent years, NetDragon has also become a major player in China’s online and mobile education industry as it works to leverage its mobile internet technologies expertise and know-how to develop a game-changing education ecosystem product.

For investor enquiries, please contact:

NetDragon Websoft Inc.

Ms. Maggie Zhou
Senior Director of Investor Relations
Tel.: +852 2850 7266; +86 591 8754 3120
Email: maggie@nd.com.cn; ndir@nd.com.cn
Website: www.nd.com.cn/ir

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED 31 DECEMBER 2014)

 

4Q 2014

3Q 2014

2014

2013

(Unaudited)

(Unaudited)

(Audited)

(Audited)

RMB ‘000

RMB ‘000

RMB ‘000

RMB ‘000

Continuing operations

Revenue

282,880

232,702

962,817

884,518

Cost of revenue

(36,342)

(23,530)

(102,844)

(81,426)

Gross profit

246,538

209,172

859,973

803,092

Other income and gains

32,464

36,034

157,101

44,980

Selling and marketing expenses

(51,206)

(38,569)

(152,495)

(106,200)

Administrative expenses

(120,876)

(77,538)

(326,934)

(366,143)

Development costs

(89,278)

(67,341)

(249,260)

(162,857)

Other expenses

(11,977)

(3,666)

(34,027)

(10,046)

Share of losses of associates

(1,715)

(406)

(2,354)

(16)

Operating profit 

3,950

57,686

252,004

202,810

Interest income on pledged bank deposits

475

638

2,794

4,883

Exchange gain (loss) on pledged bank deposits and secured bank borrowings

–

1,188

(5,081)

4,593

Net (loss) gain on derivative financial instrument

–

(646)

6,817

(5,481)

Gain on disposal of available-for-sale investment

–

–

–

5,761

Net (loss) gain on held-for-trading investments

(16,905)

(1,553)

(17,304)

8,756

Finance costs

(235)

(728)

(3,212)

(4,651)

(Loss) profit before taxation

(12,715)

56,585

236,018

216,671

Taxation

(9,442)

(4,166)

(64,197)

(50,264)

(Loss) profit for the period/year from continuing operations

(22,157)

52,419

171,821

166,407

Discontinued operations

Profit for the period/year from discontinued operations

–

–

–

6,056,041

(Loss) profit for the period/year

(22,157)

52,419

171,821

6,222,448

Other comprehensive expense for the period/year, net of income tax:

Exchange differences arising on translation of foreign operations that may be reclassified subsequently to profit or loss

(461)

(161)

(40)

(1,130)

Total comprehensive (expense) income for the period/year

(22,618)

52,258

171,781

6,221,318

(Loss) profit for the period/year attributable to:

 -Owners of the Company

(19,406)

52,595

176,681

6,140,776

 -Non-controlling interests

(2,751)

(176)

(4,860)

81,672

(22,157)

52,419

171,821

6,222,448

(Loss) profit for the period/year attributable to owner of the Company:

 -from continuing operations

(19,406)

52,595

176,681

164,352

 -from discontinued operations

–

–

–

5,976,424

(Loss) profit for the period/year attributable to owner of the Company

(19,406)

 

52,595

176,681

 

6,140,776

(Loss) profit for the period/year attributable to non-controlling interests:

 -from continuing operations

(2,751)

(176)

(4,860)

2,055

 -from discontinued operations

–

–

–

79,617

(Loss) profit for the period/year attributable to non-controlling interests

(2,751)

(176)

(4,860)

81,672

Total comprehensive (expense) income attributable to:

-Owners of the Company

(19,867)

52,434

176,641

6,139,646

-Non-controlling interests

(2,751)

(176)

(4,860)

81,672

(22,618)

52,258

171,781

6,221,318

RMB cents

RMB cents

RMB cents

RMB cents

(Loss) earnings per share

From continuing and discontinued operations

– Basic

(3.78)

10.31

34.77

1,213.44

– Diluted

(3.82)

10.27

34.22

1,181.10

From continuing operations

– Basic

(3.78)

10.31

34.77

32.48

– Diluted

(3.82)

10.27

34.22

31.75

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (AS AT 31 DECEMBER 2014)

2014

2013

(Audited)

(Audited)

RMB’000

RMB’000

Non-current assets

Property, plant and equipment

822,704

532,684

Prepaid lease payments

 

378,673

185,819

Investment property

–

15,725

Intangible assets

141,254

–

Interests in associates

28,795

1,299

Available-for-sale investments

5,000

5,000

Loan receivables

18,327

16,041

Deposits made for acquisition of property, plant and equipment

35,967

16,769

Other receivable

–

60,969

Goodwill

40,013

12,534

Deferred tax assets

54

54

1,470,787

846,894

Current assets

Prepaid lease payments

2,708

2,583

Loan receivables

1,578

713

Trade receivables

51,072

41,718

Amounts due from customers for contract work

7,252

–

Other receivables, prepayments and deposits

210,098

69,770

Amounts due from related companies

1,704

4,564

Amounts due from associates

367

–

Held-for-trading investments

211,584

20,735

Pledged bank deposit

236,805

107,368

Bank deposits

1,999,644

3,051,289

Bank balances and cash

1,036,788

1,304,355

3,759,600

4,603,095

Current liabilities

Trade and other payables

209,214

152,837

Amounts due to customers for contract work

424

–

Deferred income

25,595

26,553

Amount due to a related company

1,891

–

Amount due to an associate

8

–

Secured bank borrowing

236,805

104,672

Other financial liability

–

3,122

Income tax payable

137,648

539,927

611,585

827,111

Net current assets

3,148,015

3,775,984

Total assets less current liabilities

4,618,802

4,622,878

Non-current liabilities

Other payables

1,283

–

Deferred tax liabilities

116

–

1,399

–

Net assets

4,617,403

4,622,878

Capital and reserves

Share capital

36,943

37,664

Share premium and reserves

4,529,971

4,577,478

Equity attributable to owners of the Company

4,566,914

4,615,142

Non-controlling interests

50,489

7,736

4,617,403

4,622,878