BEIJING, March 27, 2015 /PRNewswire/ — Jiayuan.com International Ltd. (“Jiayuan” or the “Company”) (NASDAQ: DATE), operator of the largest online dating platform in China, today announced that the special committee (the “Special Committee”) of the Company’s board of directors (the “Board”) has retained Barclays Bank PLC as its financial advisor and Davis Polk & Wardwell as its legal counsel in connection with its review and evaluation of the non-binding proposal letter, dated March 3, 2015, from Vast Profit Holdings Limited (“Vast Profit”) that proposes a “going-private” transaction involving the acquisition of all of the outstanding ordinary shares of the Company not already owned by Vast Profit. Paul Hastings LLP is acting as the Company’s legal counsel.
The Board cautions the Company’s shareholders and others considering trading in the Company’s securities that no decisions have been made by the Special Committee with respect to the Company’s response to the proposal and there can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.
About Jiayuan
Jiayuan.com International Ltd. (“Jiayuan”) (NASDAQ: DATE) operates the largest online dating platform in China. Jiayuan is committed to providing a trusted, effective, and user-focused online dating platform that addresses the dating and marriage needs of China’s rapidly growing urban singles population. As a pioneer in China’s online dating market, Jiayuan ranks first in terms of number of unique visitors, average time spent per user and average page views per user among all online dating websites in China in 2014, according to iResearch. Jiayuan recorded an average of 5.4 million monthly active user accounts in the fourth quarter of 2014. Every two of Jiayuan’s American Depositary Shares represent three ordinary shares.
This press release 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,” “confident” and similar statements. Jiayuan may also make written or verbal forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in verbal statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, including development of new products and services; our ability to attract and retain users; competition in the Chinese online dating markets; changes in our revenues and certain cost or expense items as a percentage of our revenues; the outcome of any litigation or arbitration; the expected growth of the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and online dating websites and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in our documents filed with the U.S. Securities and Exchange Commission. Jiayuan does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date of the press release, and Jiayuan undertakes no duty to update such information, except as required under applicable law.
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 inNorth America and Europe. We have high expectationsfor 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.
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.
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 periodfrom 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 8pmHong 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 four consecutive weeks starting April 2, 2015, free download of iPad apps for children with Autism Spectrum Disorder (ASD) is available at Apple Store to support the ASD community
There are five Applied Behaviour Analysis (ABA) applications developed by Autism Partnership, which are “Token Economy”, “Receptive Colours”, ” Receptive Labels”, “Picsmart” and “ABA Timers”
April 2 of each year is the World Autism Awareness Day, designated by United Nations General Assembly, to raise awareness for Autism. To support this initiative, Autism Partnership will offer free download for two of its five ABA iPad applications developed recently to assist ASD children to learn specific skills, improve learning interests and attention span through the application the interactive games. For four consecutive weeks starting on April 2, 2015, the two apps available for public download at Apple Store are “Token Economy” and “Receptive Colours”.
“ABA is a scientifically proven and evidence-based treatment for autism. By introducing ABA elements into these applications, we hope to enhance the students with ASD to learn skills effectively and with motivation,” said Mr. Raymond Fung, Behavioural Consultant of Autism Partnership, and the designer of the applications.
Along with this annual event, Autism Partnership Foundation (APF) launches “APF Dress Blue Day” with aims to raise the awareness about autism, and to raise funding through donations to support all age groups of the affected children and their families in Hong Kong as well as in Asia. This year, Hong Kong and Singapore offices of Autism Partnership will support and promote this Dress Blue Day campaign. The target is to raise two million Hong Kong Dollars within the year to achieve its mission in supporting the ASD community. The donation received from this campaign will help promote public awareness and acceptance towards individuals with autism.
Token Economy
It is a very powerful tool in accelerating progress for both children with ASD and attention deficit as well as typically developing children. It can motivate individuals to change their behaviours and learn important skills in different settings such as special school, general education classroom, home, work environment and clinical settings
Receptive Colours
It is an ABA programme for children with ASD or other learning difficulties to learn colours. Users can custom-made their own colours and voice recording. This educational application is developed from an evidence-based teaching methodology, “Discrete Trial Teaching”, to maximize learning. Instructions and feedback are all recorded by professional ABA therapists. It is also suitable for typically developing children.
Aside from the above two free-of-charge applications in April, Autism Partnership also has developed three related iPad applications, which are “ABA Timers”, “Receptive Labels” and “Picsmart”. “Receptive Labels” is available in both English and Chinese to cater for various requirements of the users.
ABA Timers
It consists of three ABA programmes. It helps to improve users on patience, agility and attention span. It is developed to increase their performance such as quality of responses and work efficiency, and to reduce disruptive behaviours. ABA Timer is suitable for children with ASD and attention deficit disorder as well as typically developing children, teenagers and adults.
Receptive Labels
It is an ABA programme for children with ASD or other learning difficulties to learn labels. It is developed by two Board Certified Behaviour Analysts (BCBA) with over 15 years of international experiences, teaching individuals with ASD and other learning disabilities in the field of ABA.
Picsmart
It is a picture communication system which “speaks” for autism and children with special needs to communicate and to socialise. It has different levels to help children to talk progressively. Users can create new words. The application is very easy to use, effective, cost saving and child-friendly. The colour-coded folders include popular phrases, verbs, adjectives, emotions, food, toys, home, people, places, clothing, body parts, animals, school, date, time, alphabets and numbers.
About Autism Partnership
Autism Partnership (AP) is a worldwide authority and one of the largest and most established Applied Behavior Analysis (ABA) service providers for the autism. Established since 1994 in the United States, AP is run by professional clinicians and specializes in providing one-on-one therapy, group intervention and overseas consultation for children with Autism Spectrum Disorders (ASD) and their families. We also provide customized school-based training and social group to meet different needs of schools in the region.
Drawing on over 40 years of experience in ABA and treatment of ASD, our premium service is highly recognized by local and international service agencies and government bodies. Dedicated in research and scientific studies, AP has involved in all aspects of seminal projects including development of curriculum and behavioral intervention strategies, implementing and supervising treatment, training therapists, teachers, parents and helping professionals.
AP has over 250 top-notch staff working throughout our international offices in USA, Australia, Canada, Hong Kong , Korea, Philippines, Singapore and United Kingdom. More information about AP Hong Kong: www.autismpartnership.com.hk or www.facebook.com/APautism.
About Autism Partnership Foundation
Autism Partnership Foundation (APF), a registered charity body (qualified for the exemption from tax under section 88 of the Inland Revenue Ordinance) in Hong Kong, is committed to improving the lives of the children with autism. Through various fundraising initiatives, APF raises funds to generate public awareness and knowledge about autisms and provide support and help for individuals with ASD and their families in Asia. APF is devoted to advocate Applied Behavior Analysis (ABA) treatments and intervention for autisms through community programs of education and research. More information about APF: www.apschool.com or www.facebook.com/APFHongKong
BEIJING, March 25, 2015 /PRNewswire/ — Tarena International, Inc. (NASDAQ: TEDU) (“Tarena” or the “Company”), a leading provider of professional education services in China, today announced that it has signed a strategic partnership agreement with Adobe Creative University (“Adobe”), the global leader in digital marketing and digital media solutions, and is now an authorized Adobe training and certification partner in China of Adobe Creative University.
Through the partnership with Adobe, Tarena will continue to refine and optimize its digital art course. Pursuant to the partnership agreement, Adobe will provide Tarena with standardized learning materials, whereas Tarena will launch Adobe certification programs at Tarena’s existing learning centers to improve teaching quality in digital art education.
“As the demand for digital art designing talent intensifies across numerous industries and fields, we endeavor to increase our efforts of training more digital designers in China,” said Shaoyun Han, Founder, CEO and Chairman of Tarena. “Through our strategic partnership with Adobe, Tarena students can receive world class digital art training and earn the official validation from the industry leader to help achieve their career aspirations.”
“Tarena is a leading professional education services provider in China with high quality education and respected brand in the industry,” said Ng Yew Hwee, Managing Director of Adobe Greater China. “Given Tarena’s large student enrollment, national network of learning centers and elite instructor team, we hope to further promote Adobe in China and train more world class digital designers together with Tarena through our partnership.”
Safe Harbor Statement
This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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,” “confident” and similar statements. Tarena may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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. Any statements that are not historical facts, including the statements about Tarena’s beliefs and expectations, are forward-looking statements. Many factors, risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Tarena’s goals and strategies; its future business development, financial condition and results of operations; its ability to continue to attract students to enroll in its courses; its ability to continue to recruit, train and retain qualified instructors and teaching assistants; its ability to continually tailor its curriculum to market demand and enhance its courses to adequately and promptly respond to developments in the professional job market; its ability to maintain or enhance its brand recognition, its ability to maintain high job placement rate for its students, and its ability to maintain cooperative relationships with financing service providers for student loans. Further information regarding these and other risks, uncertainties or factors is included in Tarena’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tarena does not undertake any obligation to update such information, except as required under applicable law.
About Tarena International, Inc.
Tarena International, Inc. (NASDAQ: TEDU) is a leading provider of professional education services in China. Through its innovative education platform combining live distance instruction, classroom-based tutoring and online learning modules, Tarena offers courses in nine IT subjects and three non-IT subjects. Its courses provide students with practical education to prepare them for jobs in industries with significant growth potential and strong hiring demand. Since its inception in 2002, Tarena has trained over 188,000 students, cooperated with more than 550 universities and colleges and placed students with approximately 50,000 corporate employers in a variety of industries. For further information, please visit http://ir.tarena.com.cn.
For investor and media inquiries, please contact:
Tarena International, Inc. Christina Zhu Tel: +86-10-6211-4840 ext. 8155 Email: ir@tarena.com.cn
BERLIN, March 24, 2015 /PRNewswire/ — Since the latest update on Google Play last Tuesday, the Android version of Clash of Kings has been downloaded from Google Play like there’s no tomorrow! In the last seven days, the game has moved up the Google Play Store rankings to the top spot for free apps in Germany.
Following its launch for Android in Germany last October, this March has been a good month for the Clash of Kings app. The game finally brought its awesome popularity to hit Google Play in Germany over the last week, according to Elex Inc. “Getting our game localized to fit our target markets is a great way of reaching a wider audience,” said the company. “The goal of localization and multi-platformization is to create an enjoyable, non-confusing play experience for our different players by paying heed to their specific cultural context.”
The Battle for the Throne has been a popular feature for Clash of Kings players because it allows real-time alliance wars between millions of players. In the latest update 1.0.82, this feature has just been given massive improvements by strengthening the sociality and localization elements to fit in the German market. Through this, the feature has attracted tens of thousands of alliances worldwide, especially German players.
Elex Inc. launched Clash of Kings on the Google Play Store eight months ago and brought the game on the App Store nearly three months back. Since then the franchise has already been downloaded more than 40 million times worldwide. The app has been in the top 10 grossing apps for Google Play in 75 countries including the United States, the United Kingdom, Germany, Canada and Australia.
Clash of Kings is a real-time strategy game where players build an empire, and it involves elements such as city-building, castle defense, and conquering lands. In this massively multiplayer online game, you can challenge, team up with or just chat with other players from all over the world. To download Clash of Kings for free quickly and effectively, for Android click here, and for iOS click here.
BEIJING, March 23, 2015 /PRNewswire/ — In April 2014, a 10-square-meter fast-food restaurant, Singularity Brothers or “Xi Shao Ye,” opened in Beijing’s Zhongguancun Haidian Park and immediately attracting an enormous following. In its first 100 days, Singularity sold a record 200,000 hamburgers. Favorably reviewed by local media, the valuation of what was clearly a franchisable restaurant quickly shot up to RMB100 million. In September, another location opened in a Zhongguancun shopping center near KFC and enjoyed even greater popularity. The founders of the “Brothers” were now confident they could create a global franchise. Only in ZPARK, with its massive international influence, could the Singularity Brothers have gained such a huge following.
“The fifth branch of this now very popular restaurant chain was opened in December 2014. It’s no coincidence,“ said Meng Bing, the founder of Singularity Brothers, “that three of its first five shops were established in Zhongguancun.“ For Singularity, Meng Bing said, “The biggest medium (for promotion or advertising) is not CCTV or Baidu, but Zhongguancun.” In this new era, he said, Zhongguancun is undoubtedly the best place to create and find new and trendy hotspots because Zhongguancun is now widely viewed in China as “a gathering place for opinion leaders.”
Indeed, over the past 20 years, the impression that most people have of Zhongguancun has gradually changed from what it once was, a large electronics super mall, to what it is today — a center for innovation and strategic developments in technology and also a source of national pride.
In addition to Singularity, Zhongguancun also houses many important new businesses, not the least of which is Virtue Inno Valley. Located in Dinghao Building, Virtue’s offices were designed by master designers from Tsinghua University’s Department of Architecture — a small, simple but still very modern design.
“Only in an incubator just over 2000 square meters could a group atmosphere be obtained,” said Li Zhu, the originator of Virtue Inno Valley’s “angel open platform.” Mr. Li Zhu has over 20 years of entrepreneurial experience. Before launching Virtue Inno Valley, he set up a software company in partnership with another Tsinghua University alumnus and then sold it to Tsinghua Tongfang. Afterwards, Mr. Li became an angel investor and one of his first investments was UUSEE (http://www.uusee.com, a sports video website).
New success stories now occur at Virtue Inno Valley every day. Many of its clients often begin as poorly developed start-ups, but they frequently evolve into successful companies, some with potential valuations in excess of hundreds of millions of RMB. The foundation for Virtue Inno Valley is rooted to a large extent in its association with Tsinghua alumni. On Tsinghua University’s 100th anniversary, the Tsinghua Alumni Association of TMT (Technology, Media, Telecom) was created to help alumni do business. Not long after, the Association and THTI (Tsinghua Technology Innovation Holding Co.) together jointly helped launch Virtue Inno Valley. At that time, the government of Haidian District was leasing two out of the four floors in the Dinghao Building to Innovation Works and Tsinghua Science Park, respectively. The two floors are currently assigned to Tsinghua Science Park and managed by THTI, and as a result, Virtue Inno Valley now occupy the entire space. From the very beginning, it was Li Zhu’s intention to launch his incubator here and make it the first and most impressive “innovative” incubator in Zhongguancun.
“Beijing provides one of the best business environments in China, and Zhongguancun is a perfect area for start-ups, in part, because of its the strong entrepreneurial atmosphere and its focus on innovation. There are also large Internet companies nearby, along with abundant talent from local colleges and universities, plus a great many financial and investment institutions. In addition, there’s also a good regional market in and around Zhongguancun. With Virtue, Zhongguancun now also has the additional infrastructure an organization to give entrepreneurs a wide range of professional value-added services.
The approach of traditional incubators is to rent low-cost office space and make a profit by carving up and renting space, often on a daily basis. However, within Virtue Inno Valley, Li Zhu expects that can really help entrepreneurs reduce their failure rates by helpingto steer them in the right product direction. He can also help them connect with the resources they need to succeed. When it comes time for them to unveil their products, the Valley can also help them to find and secure the right promotional channels, find partners for cooperation and, if need be, obtain additional financing. In addition, the new incubator is also able to seed-fund many projects, as well as providing clients with many basic entrepreneurial services.
As a consequence, the biggest difference between this incubator and many other more traditional ones, Mr. Li asserted, is that “we just don’t rent a house” at a cheap price to entrepreneurs. Because Virtue Inno Valley is a community, not just a traditional incubator, it can offer its clients a “communicative atmosphere,” to small companies and small teams of people a path to succeed.
By learning from leading incubators like Y Combinator (YC), as well as from the experiences of other small incubators in Silicon Valley, plus the experiences of more than 500 start-ups, Virtue Inno Valley has also created an infrastructure for entrepreneurs, very similar in essence to a cross-enterprise team. So it’s not uncommon to see new start-ups bringing their computers to the site on their first day of business. Next, Virtue provides them with a place to work and assists them with registration. Office staff from law firms and finance firms are also on site to help them solve problems. The incubator also provides them with cloud services and helps them connect with Amazon, Aliyun, Baidu Cloud and other large platforms. In time, Li Zhu predicts, “countless billionaires will be born here.”
In Virtue Inno Valley’s experience, the most urgent demands of many early-stage entrepreneurs often involve the need for both capital and guidance. That’s why professional value-added services and investment functions are always made available to member companies by Virtue Inno Valley. Entrepreneurs can also learn from the past mistakes of other entrepreneurs, and well as from their achievements — another reason why Virtue Inno Valley is so valuable to its tenants.
Virtue Inno Valley often likes to say it offers members an “open” environment, and in many important respects, it does. First, Virtue is open to entrepreneurs. Even entrepreneurial teams, which do not receive financial investment from Virtue, are strongly supported by the incubator. Second, Virtue is open to investors from the Internet and other enterprises in other industries. As a result, Virtue is in a position to communicate with investors about all of its projects. In fact, Virtue routinely holds entrepreneurial competitions in partnership with Microsoft,Tencent, Baidu and other industry leaders. Thirdly, the incubator is also very involved to international markets. Virtue, just to give one example, recently formed a strategic partnership with Telefonica which operates incubators in no less than12 countries. As a result, entrepreneurs at Virtue have access to potential partners as they expand overseas.
Currently, Zhongguancun is very active in securing domestic venture capital investment. Besides Virtue Inno Valley, the Garage Coffee and other new entrepreneurial service providers, Zhongguancun also works very closely with IDG Capital Partners, Legend Capital, Capital Today, Northern Light Venture Capital, Walden International, CEYUAN, Infotech, TusPark Ventures, Shenzhen Capital and other well-known institutions – all of whom are partners with ZPARK in Haidian Park. For instance, IDG has invested a number of high tech enterprises in ZPARK Haidian Park, including most famous and successful mobile internet companies in China like 360, Xiaomi, Baidu and etc.
Relying on industrial advantage of ZPARK, the overall formula for“incubator + accelerator + Science Park” is beginning to take shape. In the future, ZPARK will also energetically explore upscale services accelerating the incubation for both the middle and later stages of the industrial chain. At the same time it will continue to provide a strong incubation service for the enterprises at seed and startup stages. It will also establish step-by-step systems for “pre-incubation + full incubation + professional incubation + accelerating incubation.” ZPARK will also build a promotional service platform for incubators within the Software Park, aiming for high integration of industry for both upstream and downstream firms, and meeting the requirements in all aspects of “cluster incubation” and “professional incubation.” In this way, it can facilitate the concentration and scaled development for many kinds of business and industries.
In addition, its innovative and entrepreneurial avenues will also continue to pay attention to and research global innovative and entrepreneurial trends, and explore, experiment and promote new ways of thinking. This process will inevitably cultivate a group of new entrepreneurial service providers to inject both new blood and fresh ideas into Zhongguancun.
When we think of Silicon Valley, we always think Apple, HP and other world-famous science and technology giants. When we think of Zhongguancun, we think of Baidu and MIUI developed by Xiaomi. They are both the result in no small part to the incubation cultivated within ZPARK Haidian Park — “China’s Silicon Valley.” With help from ZPARK, these high-tech Chinese enterprises from China are now in a position to develop into true global brands. Currently, ZPARK is in the midst of realizing its strategic goal of building scientific and technological innovation centers with global influence, and through these innovations, transforming the park into a true China Silicon Valley.
Total Daily Video Views Surpassed 900 Million; Consumer Revenues Grew 649% Year-on-Year
BEIJING, March 20, 2015 /PRNewswire/ — Youku Tudou Inc. (NYSE: YOKU), China’s leading Internet television company (“Youku Tudou” or the “Company”), today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2014.
Fourth Quarter 2014 Highlights[1]
Net revenues were RMB1.26 billion (US$203.8 million), a 40% increase from the corresponding period in 2013.
Gross profit was RMB240.0 million (US$38.7 million), as compared to RMB254.3 million (US$41.0 million) from the corresponding period in 2013. Non-GAAP[2] gross profit was RMB253.3 million (US$40.8 million) in the fourth quarter of 2014, as compared to RMB268.3 million (US$43.2 million) from the corresponding period in 2013.
Net loss was RMB318.1 million (US$51.3 million), as compared to RMB24.6 million (US$4.0 million) from the corresponding period in 2013. Non-GAAP net loss was RMB228.8 million (US$36.9 million) in the fourth quarter of 2014, as compared to non-GAAP net profit of RMB44.2 million (US$7.1 million) from the corresponding period in 2013.
Basic and diluted loss per ADS, each representing 18 Class A ordinary shares of the Company, for the fourth quarter of 2014 amounted to RMB1.64(US$0.26) and RMB1.64(US$0.26), respectively. Non-GAAP basic and diluted loss per ADS for the fourth quarter of 2014 amounted to RMB1.18(US$0.19) and RMB1.18(US$0.19), respectively.
Cash, cash equivalents, restricted cash and short-term investments totaled RMB8.5 billion (US$1.4 billion) as of December 31, 2014.
Acquisition of property and equipment for the fourth quarter of 2014 was RMB52.2 million (US$8.4 million).
Acquisition of intangible assets for the fourth quarter of 2014 was RMB478.3 million (US$77.1 million).
Fiscal Year 2014 Highlights
Net revenues were RMB4.0 billion (US$649.5 million), a 33% increase from 2013.
Gross profit was RMB781.0 million (US$125.9 million), a 44% increase from 2013. Non-GAAP gross profit was RMB838.0 million (US$135.1 million), a 39% increase from 2013.
Net loss was RMB888.6 million (US$143.2 million), as compared to RMB580.7 million (US$93.6 million) in 2013. Non-GAAP net loss was RMB555.7 million (US$89.6 million), as compared to RMB342.1 million (US$55.1 million) in 2013.
Basic and diluted loss per ADS, each representing 18 Class A ordinary shares, for 2014 amounted to RMB4.71(US$0.76) and RMB4.71(US$0.76), respectively, as compared to RMB3.50(US$0.56) and RMB3.50(US$0.56), respectively, for 2013.
Acquisition of property and equipment in 2014 was RMB206.6 million (US$33.3 million), as compared to RMB144.1 million (US$23.2 million) in 2013.
Acquisition of intangible assets in 2014 was RMB1.2 billion (US$199.0 million), as compared to RMB740.6 million (US$119.4 million) in 2013.
“With our large and growing multi-screen video user base underpinning our innovation efforts and growth strategy, we began to diversify and improve the monetization of our leading brand, traffic and content offerings in addition to advertising. As a result, consumer revenues achieved outstanding 473% year-on-year growth in 2014,” said Victor Koo, Chairman and Chief Executive Officer of Youku Tudou. “We have put in place a multi-business unit and content center structure, supported by new hires that add complementary skill-sets to our talent pool, creating an agile and innovation-driven organization. For 2015, we expect to see further growth of our platform as we continue to invest to strengthen our leadership in China’s online video industry.”
Dele Liu, President of Youku Tudou, added, “We continued to make solid progress in original content and PGC. As our in-house production business scaled, content marketing solutions also gained strong momentum and achieved 178% year-on-year revenue growth in 2014. Our long-term goal is to build a content eco-system in which over half of the revenue and video traffic is derived from our web-native content, i.e. original content, PGC, and UGC.”
Fourth Quarter 2014 Results
Net revenues were RMB1.26 billion (US$203.8 million) in the fourth quarter of 2014, a 40% increase from the corresponding period in 2013, exceeded the high end of the net revenues guidance previously announced by the Company.
Advertising net revenues were RMB1.10 billion (US$177.1 million) in the fourth quarter of 2014, a 37% increase from the corresponding period in 2013, exceeded the high end of the advertising net revenues guidance previously announced by the Company. The growth was primarily attributable to the increased use by brand advertisers of our advertising services as evidenced by an increase in the number of advertisers and the rising average spend per advertiser.
Consumer revenues, which are mainly derived from our subscription-based and pay-per-view services, were RMB69.7 million (US$11.2 million) in the fourth quarter of 2014, a 649% increase from the corresponding period in 2013. The growth was primarily attributable to the expansion of our subscriber base and pay-per-view orders.
Bandwidth costs as a component of cost of revenues were RMB272.2 million (US$43.9 million)in the fourth quarter of 2014, representing 22% of net revenues, as compared to 20% of net revenues for the corresponding period in 2013. This increase was primarily attributable to the increase in traffic and higher resolution quality of our video content.
Content costs as a component of cost of revenues were RMB602.9 million (US$97.2 million) in the fourth quarter of 2014, representing 48% of net revenues as compared to 39% of net revenues for the corresponding period in 2013. Non-GAAP content costs were RMB589.6 million (US$95.0 million) in the fourth quarter of 2014, representing 47% of net revenues, as compared to 38% of net revenues for the corresponding period in 2013. This increase was primarily due to expansion of our video content portfolio to support our new business growth initiatives.
Gross profit was RMB240.0 million (US$38.7 million)in the fourth quarter of 2014, as compared to RMB254.3 million (US$41.0 million) from the corresponding period in 2013. Non-GAAP gross profit was RMB253.3 million (US$40.8 million) in the fourth quarter of 2014, as compared to RMB268.3 million (US$43.2 million) from the corresponding period in 2013.
Operating expenses were RMB547.9 million (US$88.3 million) in the fourth quarter of 2014, as compared to RMB333.4 million (US$53.7 million) for the corresponding period in 2013. Non-GAAP operating expenses were RMB471.8 million (US$76.0 million) in the fourth quarter of 2014, as compared to RMB278.5 million (US$44.9 million) for the corresponding period in 2013. Detailed discussion of each component of operating expenses is as follows:
Sales and marketing expenses were RMB344.5 million (US$55.5 million) in the fourth quarter of 2014, as compared to RMB216.4 million (US$34.9 million) for the corresponding period in 2013. Non-GAAP sales and marketing expenses were RMB310.8 million (US$50.1 million) in the fourth quarter of 2014, as compared to RMB195.8 million (US$31.6 million) for the corresponding period in 2013. This increase was primarily due to increases in marketing expenses and commission expenses paid to our sales force in line with our revenue growth.
Product development expenses were RMB123.9 million (US$20.0 million) in the fourth quarter of 2014, as compared to RMB76.5 million (US$12.3 million) for the corresponding period in 2013. Non-GAAP product development expenses were RMB104.7 million (US$16.9 million) in the fourth quarter of 2014, as compared to RMB61.3 million (US$9.9 million) for the corresponding period in 2013. This increase was primarily due to an increase in personnel related expenses for our product development in mobile, search, social, paid and live broadcasting services.
General and administrative expenses were RMB79.5 million (US$12.8 million) in the fourth quarter of 2014, as compared to RMB40.4 million (US$6.5 million) from the corresponding period in 2013. Non-GAAP general and administrative expenses were RMB56.3 million (US$9.1 million) in the fourth quarter of 2014, as compared to RMB21.4 million (US$3.4 million) from the corresponding period in 2013. This increase was primarily due to the recognition of tax benefit in the fourth quarter of 2013.
Net loss was RMB318.1 million (US$51.3 million)in the fourth quarter of 2014, as compared to RMB24.6 million (US$4.0 million) for the corresponding period in 2013. Non-GAAP net loss was RMB228.8 million (US$36.9 million) in the fourth quarter of 2014, as compared to non-GAAP net profit RMB44.2 million (US$7.1 million) from the corresponding period in 2013.
Non-GAAP adjusted EBITDA loss was RMB177.7 million (US$28.6 million) in the fourth quarter of 2014, as compared to non-GAAP adjusted EBITDA profit of RMB36.8 million (US$5.9 million) from the corresponding period in 2013.
Fiscal Year 2014 Results
Net revenues were RMB4.0 billion (US$649.5 million) in 2014, a 33% increase from 2013.
Advertising net revenues were RMB3.6 billion (US$583.8 million) in 2014, a 34% increase from 2013.
Consumer revenues were RMB151.6 million (US$24.4 million) in 2014, a 473% increase from 2013.
Bandwidth costs as a component of cost of revenues were RMB917.3 million (US$147.8 million) in 2014, representing 23% of net revenues, as compared to 23% of net revenues in 2013.
Content costs as a component of cost of revenues were RMB1.8 billion (US$298.0 million) in 2014, representing 46% of net revenues, as compared to 47% of net revenues in 2013. Non-GAAP content costs were RMB1.8 billion (US$288.8 million) in 2014, representing 44% of net revenues, as compared to 45% of net revenues in 2013.
Gross profit was RMB781.0 million (US$125.9 million) in 2014. Non-GAAP gross profit was RMB838.0 million (US$135.1 million) in 2014, a 39% increase from 2013.
Operating expenses were RMB1.7 billion (US$274.1 million) in 2014, as compared to RMB1.2 billion (US$193.4 million) in 2013. Non-GAAP operating expenses were RMB1.4 billion (US$229.6 million) in 2014, as compared to RMB1.0 billion (US$161.2 million) in 2013. Detailed discussion of each component of operating expenses is as follows:
Sales and marketing expenses were RMB1.0 billion (US$166.2 million) in 2014, as compared to RMB681.0 million (US$109.8 million) in 2013. Non-GAAP sales and marketing expenses were RMB923.3 million (US$148.8 million) in 2014, as compared to RMB619.0 million (US$99.8 million) in 2013.
Product development expenses were RMB416.1 million (US$67.1 million) in 2014, as compared to RMB278.0 million (US$44.8 million) in 2013. Non-GAAP product development expenses were RMB339.4 million (US$54.7 million) in 2014, as compared to RMB232.0 (US$37.4 million) in 2013.
General and administrative expenses were RMB253.8 million (US$40.9 million) in 2014, decreased 3% from 2013. Non-GAAP general and administrative expenses were RMB162.1 million (US$26.1 million) in 2014, decreased 15% from 2013.
Net loss was RMB888.6 million (US$143.2 million) in 2014, as compared to RMB580.7 million (US$93.6 million) in 2013. Non-GAAP net loss was RMB555.7 million (US$89.6 million) in 2014, as compared to RMB342.1 million (US$55.1 million) in 2013.
Non-GAAP adjusted EBITDA loss was RMB439.7 million (US$70.9 million) in 2014, as compared to RMB309.5 million (US$49.9 million) in 2013.
Business Outlook
For the first quarter of 2015, the Company expects net revenues will be between RMB1.01 billion and RMB1.03 billion, with advertising net revenues contributing between RMB870 million and RMB890 million. This forecast reflects the Company’s current and preliminary view, which is subject to change.
Recent Development
As a result of the routine review by the Securities and Exchange Commission (the “Commission”) of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2013 (“2013 20-F”), the Company received, and responded to, comments and queries from the staff of the Commission regarding certain accounting treatment adopted by the Company in its historical financial statements. The financial information for all periods presented in this release is prepared on the same basis as the financial statements included in the Company’s annual reports and public disclosure documents since its initial public offering, and has not been revised to reflect adjustments, if any, that may result from the resolution of the comments and queries from the staff of the Commission (the “Staff”).
The substance of the Staff’s comments and the accounting implications with respect to these comments is summarized below:
1. Revenue recognition for multi-element arrangements – As disclosed in the Company’s 2013 20-F, the Company’s advertising arrangements generally contain multiple deliverables, and revenue is recognized at commencement of delivery of the last deliverable in a typical advertising arrangement, as revenue is considered contingent upon the delivery of undelivered items and the Company’s right to receive consideration from the customer for delivered items is dependent on the successful delivery of the remaining undelivered items. The Staff has inquired as to the appropriateness of the Company’s accounting policy for deferring revenue recognition until the commencement of delivery of the last deliverable and the Company’s underlying analysis. The Company has responded to the Staff’s comments and continues to believe that its current accounting policy is appropriate and conservative. To date, the Staff has not indicated it would take a different view as to the Company’s current accounting. The Company undertakes to expand its disclosure regarding revenue recognition in future filings on Form 20-F in response to the Staff’s comments.
2. Accounting for nonmonetary exchanges of licensed content (known as “barter transaction”) – As disclosed in the Company’s 2013 20-F, the Company enters into nonmonetary transactions to exchange online broadcasting rights of video content with other online video broadcasting companies from time to time. The Company records these nonmonetary exchanges at the carrying values of the broadcasting rights given up, which is nil, with no resulting gain or loss being recognized. The Staff was of the view that the Company should have accounted for these barter transactions at fair value, rather than at carrying value.
While the volume of these barter transactions has not been significant historically, the adoption of fair value accounting for these nonmonetary exchanges may result in net gains or losses on the barter exchange, as well as addition or reduction of amortization expense related to content that is swapped from these transactions, all of which were not previously reflected in the Company’s historical financial statements.
3. Application of ASC 920, Entertainment – Broadcasters (“ASC 920”) – The Company currently accounts for its licensed content similar to long-lived assets, as described in its 2013 20-F. The Staff has inquired whether the Company is within the scope of incremental industry accounting guidance of broadcasters as set forth in ASC 920, the key provisions of which relate to the accounting and presentation of programming materials (“licensed content”).
The Company agrees that fundamentally, similar to a traditional broadcaster, its business as an Internet television company is dependent on the acquisition and use of content to drive viewership and monetization of that content through advertising placements. The Company understands that the Staff shares the view that the Company is a broadcaster and should account for its licensed content pursuant to ASC 920. This would result in differences as to how the Company’s licensed content would be presented on its balance sheet and the methodology in which the Company evaluates recoverability of its licensed content.
The Company is currently evaluating the impact to its 2014 and historical financial statements that may result from the resolution of the issues summarized above. Upon conclusion of the review and assessment process, the Company undertakes to reflect all necessary adjustments based on the appropriate accounting treatment in the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2014 (the “2014 Form 20-F”) and/or a report on Form 6-K to be furnished to the Commission, as appropriate. Accordingly, the financial information presented herein is subject to change. The Company currently expects to resolve the Staff’s comments and file its 2014 Form 20-F by the end of April 2015.
Conference Call Information
Youku Tudou’s management will host an earnings conference call at 9:00 p.m. U.S. Eastern Time on March 19, 2015 (9:00 a.m.Beijing/Hong Kong Time on March 20, 2015).
Interested parties may participate in the conference call by dialing one of the following numbers below and entering passcode Youku# (i.e., 96858#) starting 10-15 minutes prior to the beginning of the call.
US Toll Free Dial In:
+1-866-519-4004
International Dial In:
+65-6723-9381
Mainland China Dial In:
+86-800-819-0121 / +86-400-620-8038
Hong Kong Dial In:
+852-3018-6771
A replay of the call will be available by dialing +61 2 8199 0299 and entering passcode 3674494. The replay will be available through March 26, 2015.
This call will be webcast live and the replay will be available for 12 months. Both will be available on the Investor Relations section of Youku Tudou’s corporate website at http://ir.youku.com.
About Youku Tudou Inc.
Youku Tudou Inc. (NYSE: YOKU) is China’s leading Internet television company. Its Youku and Tudou Internet television platforms enable users to search, view and share high-quality video content quickly and easily across multiple devices. Its Youku brand and Tudou brand are among the most recognized online video brands in China. Youku Tudou’s American depositary shares, each representing 18 of Youku Tudou’s Class A ordinary shares, are traded on the NYSE under the symbol “YOKU.”
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 announcement, as well as Youku Tudou’s strategic and operational plans, contain forward-looking statements. Youku Tudou may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission (“SEC”), 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 Youku Tudou’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the online video market in China; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with key advertisers and customers; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Youku Tudou does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Youku Tudou’s financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Youku Tudou uses the following measures defined as non-GAAP financial measures by the SEC in evaluating its business: non-GAAP content costs, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP profit or loss from operations and non-GAAP net profit or loss and non-GAAP adjusted EBITDA profit or loss. We define non-GAAP content costs as content costs excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to user generated content. We define non-GAAP gross profit or loss as the respective nearest comparable GAAP financial measure to exclude share-based compensation expenses and amortization of intangible assets from business combination in relation to user generated content. We define non-GAAP operating expenses as operating expenses excluding share-based compensation expenses, business combination related expenses and amortization of intangible assets from business combination in relation to customer relationship, technology and non-compete provisions. We define non-GAAP sales and marketing expenses as sales and marketing expenses excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to customer relationship. We define non-GAAP product development expense as product development expenses excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to technology. We define non-GAAP general and administrative expenses as general and administrative expenses excluding share-based compensation expenses, business combination related expenses and amortization of intangible assets from business combination in relation to non-compete provisions. We define non-GAAP profit or loss from operations as profit or loss from operations excluding share-based compensation expenses, amortization of intangible assets from business combination and business combination related expenses. We define non-GAAP net profit or loss as net loss excluding share-based compensation expenses, amortization of intangible assets from business combination and business combination related expenses. We define non-GAAP adjusted EBITDA profit or loss as net profit or loss before income taxes, interest expenses, interest income, depreciation and amortization (excluding amortization of acquired content), further adjusted for share-based compensation expenses, amortization of intangible assets from business combination, business combination related expenses and other non-operating items.
We present non-GAAP financial measures because they are used by our management to evaluate our operating performance. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies. A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses in Youku Tudou’s business for the foreseeable future.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP financial measures” at the end of this release.
For more information, please contact:
Chang You Youku Tudou Inc. Tel: (+8610) 5885-1881 x 8066 Email: changyou@youku.com
[1]
The reporting currency of the Company is Renminbi (“RMB”), but for the convenience of the reader, the amounts presented throughout the release are in US dollars (“US$”). Unless otherwise noted, all conversions from RMB to US$ are made at a rate of RMB6.2046 to US$1.00, the effective noon buying rate as of December 31, 2014 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.
[2]
All non-GAAP measures exclude, as applicable, share-based compensation expenses and amortization of intangible assets from business combination. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company’s use of non-GAAP information set forth elsewhere in this press release.
YOUKU TUDOU INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for number of shares)
As of
December 31, 2013
December 31, 2014
December 31, 2014
RMB
RMB
US$
ASSETS
(Unaudited)
(Unaudited)
Current assets:
Cash and cash equivalents
1,764,221
3,820,742
615,792
Restricted cash
2,679
617,586
99,537
Short-term investments
1,409,439
4,021,199
648,100
Accounts receivable, net
1,370,031
1,719,760
277,175
Intangible assets, net
51,942
165,839
26,728
Amounts due from related party
–
125,204
20,179
Deferred tax assets
7,843
3,023
487
Prepayments and other assets
82,300
90,254
14,546
Total current assets
4,688,455
10,563,607
1,702,544
Non-current assets:
Property and equipment, net
222,229
307,425
49,548
Long-term investments
–
67,293
10,846
Intangible assets, net
1,197,671
1,396,902
225,140
Capitalized content production costs
1,176
1,678
270
Prepayments and other assets
197,856
429,597
69,238
Goodwill
4,262,569
4,262,569
687,001
Total non-current assets
5,881,501
6,465,464
1,042,043
TOTAL ASSETS
10,569,956
17,029,071
2,744,587
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
213,825
563,009
90,741
Advances from customers
25,081
36,095
5,817
Amounts due to related party
–
4
1
Accrued expenses and other liabilities
1,124,342
1,668,122
268,853
Short-term bank loan
–
500,000
80,585
Total current liabilities
1,363,248
2,767,230
445,997
Non-current liabilities:
Deferred tax liability
219,519
214,348
34,547
Other liabilities
4,070
6,570
1,059
Total non-current liabilities
223,589
220,918
35,606
Total liabilities
1,586,837
2,988,148
481,603
Commitments and contingencies
Shareholders’ equity:
Class A Ordinary Shares (US$0.00001 par value, 9,340,238,793 authorized, 2,356,529,401 and 3,123,742,699 issued as of December 31, 2013 and December 31, 2014, respectively, 2,356,529,401 and 2,834,270,299 outstanding as of December 31, 2013 and December 31, 2014, respectively)
154
201
32
Class B Ordinary Shares (US$0.00001 par value, 659,761,207 authorized, 659,561,893 and 645,691,903 issued and outstanding as of December 31, 2013 and December 31, 2014, respectively)
49
48
8
Additional paid-in capital
11,058,360
18,878,497
3,042,661
Treasury stock (at cost, nil and 289,472,400 as of December 31, 2013 and December 31, 2014, respectively)
–
(1,845,892)
(297,504)
Statutory reserves
2,063
13,146
2,119
Accumulated deficit
(1,878,454)
(2,778,182)
(447,763)
Accumulated other comprehensive loss
(199,053)
(226,895)
(36,569)
Total shareholders’ equity
8,983,119
14,040,923
2,262,984
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
10,569,956
17,029,071
2,744,587
YOUKU TUDOU INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended
For the Twelve Months Ended
(Amounts in thousands, except for number of shares and ADS and per share and per ADS data)
December 31, 2013
September 30, 2014
December 31, 2014
December 31, 2014
December 31, 2013
December 31, 2014
December 31, 2014
RMB
RMB
RMB
US$
RMB
RMB
US$
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net revenues (including advertising net revenues from related party amounting to RMB69,763 and RMB110,201 for the three months ended September 30, 2014 and December 31, 2014, respectively, and RMB206,702 for the year ended December 31, 2014 )
901,287
1,106,641
1,264,360
203,778
3,028,484
4,030,094
649,533
Cost of revenues (Note 1)
(646,938)
(859,774)
(1,024,396)
(165,103)
(2,487,421)
(3,249,085)
(523,657)
Gross profit
254,349
246,867
239,964
38,675
541,063
781,009
125,876
Operating expenses:
Product development
(76,514)
(112,434)
(123,861)
(19,963)
(278,015)
(416,111)
(67,065)
Sales and marketing
(216,444)
(287,038)
(344,493)
(55,522)
(681,008)
(1,030,899)
(166,150)
General and administrative
(40,393)
(53,009)
(79,528)
(12,818)
(261,770)
(253,817)
(40,908)
Total operating expenses
(333,351)
(452,481)
(547,882)
(88,303)
(1,220,793)
(1,700,827)
(274,123)
Loss from operations
(79,002)
(205,614)
(307,918)
(49,628)
(679,730)
(919,818)
(148,247)
Interest income
8,419
22,694
22,660
3,652
29,972
61,330
9,884
Interest expenses
–
–
–
–
(545)
–
–
Share of net loss of equity investee
–
–
(840)
(135)
–
(840)
(135)
Other, net
46,878
1,542
19,445
3,134
70,573
22,169
3,573
Total other income, net
55,297
24,236
41,265
6,651
100,000
82,659
13,322
Loss before income taxes
(23,705)
(181,378)
(266,653)
(42,977)
(579,730)
(837,159)
(134,925)
Income taxes
(876)
–
(51,474)
(8,296)
(1,014)
(51,486)
(8,298)
Net loss
(24,581)
(181,378)
(318,127)
(51,273)
(580,744)
(888,645)
(143,223)
Other comprehensive (loss) income, before tax
Foreign currency translation adjustments
(33,201)
214
(35,370)
(5,701)
(83,171)
(27,842)
(4,487)
Other comprehensive (loss) income, before tax
(33,201)
214
(35,370)
(5,701)
(83,171)
(27,842)
(4,487)
Income tax expense related to components of other comprehensive (loss) income
BEIJING, March 19, 2015 /PRNewswire/ — Renren Inc. (NYSE: RENN) (“Renren” or the “Company”), a leading real-name social networking internet platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2014.
Renren’s financial statements will reflect the deconsolidation of 56.com’s operating results. Retrospective adjustments to the historical statement of operations have also been made to provide a consistent basis of comparison for the financial results. Specifically, 56.com’s operational results have been excluded from the Company’s financial results from continuing operations and have been separately itemized under discontinued operations.
Fourth Quarter 2014 Highlights
Total net revenues were US$17.2 million, a 38.5% decrease from the corresponding period in 2013.
Renren net revenues were US$10.7 million, a 13.4% decrease from the corresponding period in 2013.
Games net revenues were US$6.5 million, a 58.4% decrease from the corresponding period in 2013.
Gross profit was US$4.9 million, a 65.3% decrease from the corresponding period in 2013.
Operating loss was US$32.4 million, compared to an operating loss of US$38.5 million in the corresponding period in 2013.
Net income attributable to the Company was US$35.0 million, compared to a net income of US$100.8 million in the corresponding period in 2013.
Adjusted net income (1) (non-GAAP) was US$43.2 million, compared to an adjusted net income of US$104.7 million in the corresponding period in 2013.
(1)
Adjusted net income (loss) is a non-GAAP measure, which is defined as net income (loss) excluding share-based compensation expenses, amortization of intangible assets and impairment of intangible assets and goodwill. See “About Non-GAAP Financial Measures” below.
Fiscal Year 2014 Highlights
Total net revenues were US$83.0 million, a 43.9% decrease from 2013.
Renren net revenues were US$45.9 million, a 26.6% decrease from 2013.
Games net revenues were US$37.1 million, a 56.6% decrease from 2013.
Gross profit was US$35.0 million, a 62.7 % decrease from 2013.
Operating loss was US$159.4 million, compared to an operating loss of US$99.4 million in 2013.
Net income attributable to the Company was US$60.5 million, compared to a net income of US$63.7 million in 2013.
Adjusted net income (1) (non-GAAP) was US$145.9 million, compared to an adjusted net income of US$81.6 million in 2013.
“2014 was an important year of transformation for Renren. We reallocated our resources from group-buy e-commerce, on-line video and games development to new growth areas such as internet finance, leveraging our strength with college students from our core Renren social network,” said Joseph Chen, Chairman and Chief Executive Office. “With a better cost structure in place, we believe the most challenging part of the transition is past us. Our recent initiatives in internet financial services have made an exciting start and we believe this can become a future growth engine. Meanwhile, we will continue to innovate and develop new services for our core SNS, which is the foundation of all our services including internet finance.”
Fourth Quarter 2014 Results
Total net revenues for the fourth quarter of 2014 were US$17.2 million, representing a 38.5% decrease from the corresponding period in 2013.
Renren net revenues were US$10.7 million, representing a 13.4% decrease from the corresponding period of 2013. Within Renren net revenues, online advertising revenues were US$4.2 million for the fourth quarter of 2014, a 44.1% decrease from the corresponding period of 2013. The decrease was due to increasing competition and the continuing migration of our traffic to mobile. Internet Value-Added Services (IVAS) revenues were US$6.5 million, representing a 33.6% increase from the corresponding period in 2013, primarily due to the increase in revenue from the social video platform “Woxiu”. Monthly unique log-in users increased from approximately 45 million in December 2013 to approximately 46 million in December 2014.
Games net revenues were US$6.5 million for the fourth quarter of 2014, a 58.4% decrease from the corresponding period of 2013. The decrease was due to the lack of new titles and previously launched games having reached their mature stages.
Cost of revenues was US$12.3 million, a 10.8% decrease from the corresponding period of 2013.
Operating expenses were US$37.3 million, a 29.1% decrease from the corresponding period of 2013.
Selling and marketing expenses were US$8.5 million, a 52.6% decrease from the corresponding period of 2013. The decrease was primarily due to the decrease in advertising and promotions for online games and a significant decrease in expenses incurred for Renren branding campaigns.
Research and development expenses were US$10.6 million, a 38.2% decrease from the corresponding period in 2013. The decrease was primarily due to headcount reduction and the resulting decrease in personnel related expense.
General and administrative expenses were US$14.0 million, a 0.7% increase from the corresponding period in 2013.
Restructuring costs were US$4.2 million, representing the gaming business restructuring cost that occurred during the reporting quarter.
Share-based compensation expenses, all of which were included in operating expenses, were US$8.3 million, compared to US$3.2 million in the corresponding period in 2013.
Operating loss was US$32.4 million, compared to an operating loss of US$38.5 million in the corresponding period in 2013.
Realized gain on short-term investments was US$21.6 million, compared to US$9.0 million in the corresponding period in 2013. The gain was primarily derived from sales of marketable securities.
Earnings in equity method investments were US$52.1 million. These earnings were mainly derived from earnings in Japan Macro Opportunities Offshore Partners, LP.
Net income attributable to the Company was US$35.0 million, compared to a net income of US$100.8 million in the corresponding period in 2013. In the fourth quarter of 2013 the Company recognized a US$132.7 million gain from the deconsolidation of subsidiaries whereas only US$0.5 million corresponding gain in 2014.
Adjusted net income (non-GAAP) was US$43.2 million, compared to an adjusted net income of US$104.7 million in the corresponding period in 2013.
Fiscal Year 2014 Results
Total net revenues in 2014 were US$83.0 million, a 43.9% decrease from 2013.
Renren net revenues in 2014 were US$45.9 million, representing a 26.6% decrease from 2013. Within Renren net revenues, online advertising revenues were US$26.9 million in 2014, a 35.3% decrease from 2013. The decrease in advertising revenues was due to the continuing migration of our traffic from PC to mobile coupled with increasing competition. Internet Value-Added Services (IVAS) revenues were US$19.0 million for 2014, representing a 9.3% decrease from 2013. The decrease was mainly due to decreased revenue from VIP memberships and third party application developer revenues on renren.com.
Games net revenues in 2014 were US$37.1 million, a 56.6% decrease from 2013. The decrease was due to our previously launched games having reached mature stages and the fact that the restructuring of our gaming business since late 2013 has yet to result in the launch of successful new titles.
Cost of revenues in 2014 was US$48.0 million, an 11.6% decrease from 2013.
Gross profit in 2014 was US$35.0 million, a 62.7% decrease from US$93.7 million in 2013. Gross margin in 2014 was 42.2%, compared to 63.3% in 2013.
Operating expenses in 2014 were US$194.4 million, a 0.7% increase from 2013.
Selling and marketing expenses in 2014 were US$38.3 million, a 38.4% decrease from 2013, primarily due to decreased promotional expenses for our games and Renren branding.
Research and development expenses in 2014 were US$50.7 million, a 35.0% decrease from 2013, primarily due to headcount reduction and the resulting decrease in personnel related expenses.
General and administrative expenses in 2014 were US$51.4 million, a 4.4% increase from 2013.
Impairment of intangible assets and goodwill were US$0.7 million and US$46.9 million respectively. The fair value of the goodwill of the Renren platform reporting unit, which included 56.com, were reviewed and estimated in September 2014 based on the operating results and market conditions at time of the review, and the Company determined that such impairments were required.
Restructuring costs in 2014 were US$6.4 million, compared to US$3.5 million in 2013.
Share-based compensation expenses in 2014, all of which were included in the operating expenses, were US$23.6 million, compared to US$16.1 million in 2013. The increase was mainly due to additional share-based incentive awards granted to employees and directors.
Operating loss in 2014 was US$159.4 million, compared to US$99.4 million operating loss in 2013.
Realized gain on short-term investments was US$139.3 million, compared to US$56.0 million in 2013. The gain was primarily derived from sales of marketable securities.
Earnings in equity method investments were US$49.0 million, compared to US$20.3 million in 2013. These earnings were mainly derived from earnings in Japan Macro Opportunities Offshore Partners, LP.
Gain on deconsolidation of the subsidiaries in 2014 was US$0.5 million, compared to US$132.7 million in 2013. The gain in 2014 was due to a one-time gain from the deconsolidation of 56.com.
Gain on disposal of equity method investment, net of income taxes was US$57.0 million, due to the one-time gain from the disposal of our remaining equity interest in Nuomi.
Net income attributable to the Company in 2014 was US$60.5 million, compared to a net income of US$63.7 million in 2013.
Adjusted net income (non-GAAP) in 2014 was US$145.9 million, compared to an adjusted net income of US$81.6 million in 2013.
Share Repurchase Program
On June 28, 2014, the Company announced a share repurchase program to repurchase up to US$100 million of its ADSs and shares. During the fourth quarter of 2014, Renren repurchased approximately 9.3 million ADSs in an aggregate amount of approximately US$28.9 million.
Business Outlook
The Company expects to generate revenues in an amount ranging from US$11 million to US$13 million in the first quarter of 2015, representing 44.2% to 52.8% year-over-year decline. This forecast reflects Renren’s current and preliminary view, which is subject to change.
Conference Call Information
Management will host an earnings conference call at 9:00 p.m. Eastern Time on Wednesday, March 18, 2015 (Beijing/Hong Kong Time: 9:00 a.m., Thursday, March 19, 2015).
Interested parties may participate in the conference call by dialing the numbers below and entering passcode 10-15 minutes prior to the initiation of the call.
This call will be webcast live and the replay will be available on Renren’s corporate web site at http://ir.renren-inc.com for 12 months.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a leading real name social networking internet platform in China. It enables users to connect and communicate with each other, share information and user generated content, play online games, watch videos and enjoy a wide range of other features and services. Renren’s businesses primarily include the main social networking website renren.com and the game operating platform Renren Games. Renren.com had approximately 223 million activated users as of December 31, 2014. Renren’s American depositary shares, each of which represents three Class A ordinary shares, trade on NYSE under the symbol “RENN”.
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 for the first quarter of 2015 and quotations from management in this announcement, as well as Renren’s strategic and operational plans, contain forward-looking statements. Renren may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission (“SEC”), 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 Renren’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the social networking site market in China; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with key advertisers and customers; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Renren does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Renren’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Renren uses “adjusted net income (loss)” which is defined as “a non-GAAP financial measure” by the SEC, in evaluating its business. We define adjusted net income (loss) as net income (loss) excluding share-based compensation expenses, amortization of intangible assets and impairment of intangible assets and goodwill. We present adjusted net income (loss) because it is used by our management to evaluate our operating performance. We also believe that this non-GAAP financial measure provide useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies.
The presentation of this non-GAAP financial measure is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliation of non-GAAP results of operations measures to the comparable GAAP financial measures” at the end of this release.
For more information, please contact:
Cynthia Liu Investor Relations Department Renren Inc. Tel: (86 10) 8448 1818 ext 1300 Email: ir@renren-inc.com
RENREN INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in US dollars, in thousands, except shares,
December 31,
September 30,
December 31,
per shares, ADS, and per ADS data)
2013
2014
2014
ASSETS
Current assets:
Cash and cash equivalents
$
154,308
$
169,500
$
183,025
Term deposits
492,699
570,680
494,065
Restricted Cash
————
2,060
————
Short-term investments
301,995
72,016
29,384
Accounts and notes receivable, net
15,958
16,125
18,044
Prepaid expenses and other current assets
34,080
25,433
37,638
Amounts due from related parties
62,411
405
1,047
Deferred tax assets-current
628
458
————
Equity method investment-current
60,508
————
————
Total current assets
1,122,587
856,677
763,203
Non-current assets:
Property and equipment, net
58,560
49,654
43,690
Intangible assets, net
27,397
12,935
2
Goodwill
61,407
13,700
————
Long-term investments
107,842
206,293
320,414
Deferred tax assets-non-current
1,109
1,560
————
Other non-current assets
6,784
23,707
21,844
Total non-current assets
263,099
307,849
385,950
TOTAL ASSETS
$
1,385,686
$
1,164,526
$
1,149,153
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
10,170
$
8,355
$
5,501
Accrued expenses and other payables
33,314
21,853
24,094
Amounts due to related parties
61,062
87
303
Deferred revenue and advance from customers
8,639
7,662
6,917
Derivative contract liabilities
————
2,866
————
Income tax payable
2,077
8,629
9,229
Total current liabilities
115,262
49,452
46,044
Non-current liabilities:
Other non-current liabilities
156
154
730
Total non-current liabilities
156
154
730
TOTAL LIABILITIES
115,418
49,606
46,774
Shareholders’ Equity:
Class A ordinary shares
790
744
720
Class B ordinary shares
305
305
305
Additional paid-in capital
1,285,283
1,244,690
1,224,393
Statutory reserves
6,712
6,712
6,712
Accumulated deficit
(197,726)
(172,225)
(137,266)
Accumulated other comprehensive income
174,781
34,694
7,774
Total Renren Inc. shareholders’ equity
1,270,145
1,114,920
1,102,638
Noncontrolling Interests
123
————
(259)
TOTAL EQUITY
1,270,268
1,114,920
1,102,379
TOTAL LIABILITIES AND EQUITY
$
1,385,686
$
1,164,526
$
1,149,153
RENREN INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months Ended
For the Twelve Months Ended
(Amounts in US dollars, in thousands, except shares,
December 31,
September 30,
December 31,
December 31,
December 31,
per shares, ADS, and per ADS data)
2013
2014
2014
2013
2014
Net revenues
Renren
$
12,368
$
11,458
$
10,713
$
62,474
$
45,853
Games
15,557
8,071
6,466
85,473
37,101
Total net revenues
27,925
19,529
17,179
147,947
82,954
Cost of revenues
(13,727)
(12,402)
(12,250)
(54,280)
(47,972)
Gross profit
14,198
7,127
4,929
93,667
34,982
Operating expenses:
Selling and marketing
(17,902)
(9,974)
(8,490)
(62,198)
(38,340)
Research and development
(17,176)
(12,147)
(10,609)
(77,956)
(50,675)
General and administrative
(13,923)
(13,246)
(14,018)
(49,275)
(51,429)
Impairment of intangible assets
(208)
(203)
————
(208)
(714)
Impairment of goodwill
————
(46,864)
————
————
(46,864)
Restructuring cost
(3,475)
(2,110)
(4,244)
(3,475)
(6,354)
Total operating expenses
(52,684)
(84,544)
(37,361)
(193,112)
(194,376)
Loss from operations
(38,486)
(77,417)
(32,432)
(99,445)
(159,394)
Other income
603
1,214
697
1,039
2,448
Other expense
————
————
(1,812)
————
(1,812)
Exchange gain (loss) on offshore bank accounts
1,036
930
(981)
1,476
(2,277)
Interest income
2,885
3,260
3,792
12,778
12,677
Realized gain on short-term investments
9,049
4,602
21,576
56,022
139,265
Impairment of short-term investments
(2,098)
————
————
(2,098)
————
Impairment of equity method investments
(23,025)
————
————
(23,025)
————
Loss before provision of income tax, earnings in equity method
investments and noncontrolling interest, net of income taxes
(50,036)
(67,411)
(9,160)
(53,253)
(9,093)
Income tax (expenses) benefit
3,773
(6)
(5,870)
3,980
(6,517)
Loss before earnings in equity method investments and noncontrolling interest, net of income taxes
(46,263)
(67,417)
(15,030)
(49,273)
(15,610)
Earnings in equity method investments, net of income taxes
17,974
47,217
52,113
20,317
49,015
Income (loss) from continuing operations
(28,289)
(20,200)
37,083
(28,956)
33,405
Discontinued operation
Loss from operations of discontinued operations, net of income taxes
(3,546)
(18,045)
(2,773)
(40,068)
(30,809)
Gain on deconsolidation of the subsidiaries
132,665
————
489
132,665
489
Gain on disposal of equity method investment, net of income tax
————
————
(99)
————
56,993
Gain (loss) from discontinued operations, net of income taxes
129,119
(18,045)
(2,383)
92,597
26,673
Net income (loss)
100,830
(38,245)
34,700
63,641
60,078
Net loss attributable to noncontrolling interests
————
122
259
92
382
Net income (loss) attributable to Renren Inc.
$
100,830
$
(38,123)
$
34,959
$
63,733
$
60,460
Net income (loss) per share from continuing operations attributable to Renren Inc.shareholders:
HANNOVER, Germany, March 18, 2015 /PRNewswire/ — Neusoft Corporation (“Neusoft”, SSE: 600718), a leading IT solution and service provider from China, attended the CeBIT 2015 in Hannover, Germany, showcasing its IT technologies and products in the fields of automotive electronics and healthcare, under the theme of “Innovation Drives Sustainable Growth of Society”. As the only software company in China delegation at CeBIT 2015, Neusoft demonstrated its passion for innovation in the new information era and its continuous engagement to further promote China–Germany cooperation by information technologies.
In the field of automotive electronics, Neusoft has become a global leading In-Vehicle Infotainment system provider. Its software is running in many top automobile brands worldwide. The C3-Alfus™ infotainment system, One Core®navigation solution, and the advanced driver assistance system are Neusoft’s key innovative products showcased at the exhibition. Among these products, One Core® received hot attention on the exhibition. It was co-developed by Neusoft’s R&D teams in China and Germany, which is the world’s first available navigation solution to cover the entire global market with one and the same navigation core system.
Another highlight of Neusoft at the exhibition was its healthcare ecosystem, which integrates medical equipments, healthcare IT solutions and health management services. It is dedicated to providing comprehensive medical and healthcare services by applying emerging IT technologies. Neusoft’s Xikang Healthcare Management business is committed to enabling more people to enjoy convenient and cost-efficient healthcare management services by integrating Internet of Things, healthcare cloud platforms and outstanding medical resources. Neusoft exhibited its wearable devices and other monitoring terminals, such as the intelligent healthcare wristwatch, sleep monitor, Healthcare Pad, etc., and these terminals are an important part in the healthcare ecosystem.
The China Germany ICT Summit was held on the opening day of CeBIT 2015 under the theme of “Software Defines the World”. Dr. Liu Jiren, Chairman & CEO of Neusoft, delivered a speech on the topic of “Information Technology-enabled Innovations Promote Social Development”. In his speech, Dr. Liu mentioned that the hyper-connectivity brought by emerging information technologies is transforming our world, and supporting society to address the challenges of sustainable development. The Internet is transforming almost every industry, and information consumption has become one of the new engines of economic growth. Over the past 20 years, Neusoft has been dedicated to driving social development with IT-enabled innovations, especially in the fields of healthcare and automotive information system. As globalization has entered into an information era, the “Industry 4.0“ in Germany and the “Internet +“ in China have brought more common ground and complementary advantages for the two countries in the aspects of social and economic development. With information technology as a bridge, the two countries will embrace more promising cooperation in many sectors in the future.
Under the theme of d!conomy, this year’s CeBIT attracted over 3,000 companies from over 70 countries around the globe. As a partner country of the exhibition, China had a large delegation of companies participating in this event. As the representatives of Chinese enterprises that have the latest technologies and innovations, Neusoft and other leading companies, including Alibaba and Huawei, etc., showcased their products and services to the world.
About Neusoft
As an IT solutions & services provider in China, Neusoft has been dedicated to promoting social development by innovative IT technologies, to create new lifestyle for individuals and to create values for the society. Founded in 1991, the company currently employs a total of 20,000 employees and has set up 8 regional headquarters, 10 software R&D bases, 16 software development and technology support centers and a comprehensive marketing & service network in over 60 cities across China. In addition, the company has set up subsidiaries in the US, Japan, Europe, Middle East and South America. For more information, please visit www.neusoft.com
For more information, please contact:
Terry Du Branding & Marketing Management Center Neusoft Corporation Phone: +86-24-8366-2306 Email: duch@neusoft.com
