BEIJING, Aug. 4 /PRNewswire-Asia/ --
Revenue Up 32.4% to RMB213.7 Million from the Prior Year Period
Non-GAAP Net Income up 49.7% to RMB65.3 Million from the Prior Year Period
Non-GAAP Diluted Earnings per ADS of $0.63
Live Conference Call to be held on Monday, August 3, 2009 at 5:00 PM U.S. Eastern Time
Duoyuan Global Water Inc. (NYSE: DGW) ("Duoyuan" or the "Company"), a leading China-based domestic water treatment equipment supplier, today announced unaudited financial results for the second quarter of 2009.
Mr. Wenhua Guo, the Company's Chairman and Chief Executive Officer, stated, "We are pleased with our second quarter financial results and our first quarter reporting as a public company. Our growth in revenue across all three product lines and our operational performance in the second quarter of 2009 demonstrate the strength of our business model and our unique competitive position. Despite the global economic environment, China's water treatment industry continues to create strong demand for our products. Our new product introductions, our low cost manufacturing base and extensive distribution network all contributed to our strong quarterly financial results today."
In the second quarter of 2009, the Company recognized RMB90.5 million ($13.2 million), or $0.87 per ADS, of non-cash share-based compensation expense, related primarily to the grant of fully vested ordinary shares to certain employees upon the completion of the initial public offering, as disclosed in the Company's prospectus (Form 424B4), dated June 24, 2009, and filed with the Securities and Exchange Commission. The Company has provided unaudited financial results today in both GAAP and non-GAAP formats to present its results to exclude such non-cash share-based compensation expense. Please refer to the Company's discussion of "Non-GAAP Disclosure" and the "Reconciliation of GAAP to Non-GAAP Results of Operations" set forth below.
Second Quarter 2009 Financial Highlights
-- Revenue in the second quarter of 2009 was RMB213.7 million ($31.3
million(1)), an increase of 32.4% from RMB161.4 million in the
comparable period of 2008.
-- Non-GAAP gross margin increased to 49.6% in the second quarter of 2009
from 45.9% in the comparable period of 2008.
-- Non-GAAP net income was RMB65.3 million ($9.6 million), an increase of
49.7% from RMB43.7 million in the comparable period of 2008.
-- Non-GAAP diluted earnings per ADS(2) were $0.63. Each ADS represents
two ordinary shares of the Company.
Second Quarter 2009 Financial Performance
Second quarter 2009 revenue increased 32.4% to RMB213.7 million ($31.3 million) from RMB161.4 million in the comparable period of 2008, reflecting growth across all three product categories. Revenue from wastewater treatment equipment increased 47.6%, to RMB87.2 million ($12.8 million) in the second quarter of 2009 compared to RMB59.1 million in the second quarter of 2008, particularly reflecting increased demand for Duoyuan's belt filter press machines, online testing equipment and ultraviolet shelving disinfection systems. Revenue from circulating water treatment increased by 19.8% to RMB79.9 million ($11.7 million) in the second quarter of 2009 compared to RMB66.7 million in the second quarter of 2008, driven by increased demand for the Company's new fully automatic filters and circulating water central processors. Revenue from water purification equipment increased by 26.5% to RMB43.3 million ($6.3 million) in the second quarter of 2009 compared to RMB34.2 million in the prior year period, as the Company's newly introduced models for central water purifiers, ozone generators and ultraviolet water purifiers were well received by the marketplace.
Demand for the Company's products increased across all three product lines as a result of ongoing governmental regulations mandating the utilization of water treatment products and stricter enforcement of environmental protection laws. While Duoyuan experienced revenue growth across all three product categories in the second quarter of 2009, demand for the Company's wastewater treatment equipment outpaced demand for circulating water treatment equipment and water purification equipment due to demand for existing and new wastewater treatment equipment, including online testing equipment and ultraviolet shelving disinfection systems.
For the second quarter of 2009, non-GAAP gross profit increased by 43.1% to RMB106.1 million ($15.5 million) from RMB74.1 million in the prior year's period. Non-GAAP gross margin for the second quarter of 2009 was 49.6%, compared to 45.9% in the second quarter of 2008, primarily due to a decrease in raw material costs.
Non-GAAP operating income increased by 52.2% to RMB88.3 million ($12.9 million) in the second quarter of 2009, from RMB58.0 million in the comparable period of 2008. Non-GAAP operating margins increased to 41.3% in the second quarter of 2009, from 35.9% in the prior year period. As a percentage of revenue, research and development, selling expenses and general and administrative expenses, excluding non-cash share-based compensation expense, decreased as a percentage of revenue in the second quarter of 2009 compared to the second quarter of 2008.
Provision for income taxes in the second quarter of 2009 increased to RMB22.9 million ($3.4 million), an effective tax rate of 25.0%, from RMB10.7 million, an effective tax rate of 20.2%, in the second quarter of 2008. The increase in tax provision primarily reflects the increase in the Company's profits by 62.2% over the same period of 2008, and the termination of a tax exemption for Duoyuan Langfang, one of the Company's subsidiaries on December 31, 2008.
Non-GAAP net income increased 49.7% to RMB65.3 million ($9.6 million) in the second quarter of 2009, from RMB43.7 million in the prior year's second quarter. Non-GAAP basic and diluted earnings per share increased to RMB2.16 ($0.32) in the second quarter of 2009, from RMB1.46 in the second quarter of 2008. During this year over year period, non-GAAP basic and diluted earnings per ADS increased to RMB4.31 ($0.63) from RMB2.91, respectively.
The Company had approximately 30.3 million weighted average number of diluted shares outstanding as of June 30, 2009, compared to 30.0 million weighted average number of diluted shares outstanding as of June 30, 2008.
As of June 30, 2009, the Company had cash and bank deposits of RMB936.4 million ($137.1 million), compared to RMB198.5 million as of December 31, 2008, mostly reflecting net proceeds from the Company's initial public offering. Cashflows provided by operating activities for the six months ended June 30, 2009 were approximately RMB122.9 million ($18.0 million), compared to approximately RMB142.1 million in the prior year period. The Company had notes payable of approximately RMB20.0 million ($2.9 million) at the close of the second quarter of 2009.
First Half 2009 Financial Performance
For the six months ended June 30, 2009, revenue increased by 34.7% to RMB334.4 million ($49.0 million) from RMB248.2 million for the first six months of 2008. During this same time period, non-GAAP gross profit increased by 47.7% to RMB160.5 million ($23.5 million) from RMB108.7 million. Non-GAAP operating income increased by 64.0% to RMB127.9 million ($18.7 million) in the first six months of 2009 from RMB78.0 million in the first six months of 2008, and non-GAAP net income increased 60.6% to RMB94.3 million ($13.8 million), or RMB3.14 ($0.46) per share, from RMB58.7 million, or RMB1.96 per share, in these respective periods. Non-GAAP net income per ADS was RMB6.28 ($0.92) in the first six months of 2009, up from RMB3.91 in the first six months of 2008. Weighted average number of diluted shares outstanding were approximately 30.0 million for the first six months of 2009 and 2008.
Initial Public Offering
On June 29, 2009, Duoyuan completed an initial public offering of 5,500,000 ADSs representing 11,000,000 ordinary shares plus an over-allotment of 825,000 ADSs representing 1,650,000 ordinary shares at a price of $16.00 per ADS. This represented 28.9% of the 43,702,631 total outstanding shares following the initial public offering. The net proceeds from the initial public offering, after deducting a total of $8.7 million of underwriting discounts, commissions and offering expenses, totaled $92.5 million.
Mr. Stephen C. Park, the Chief Financial Officer of Duoyuan, stated, "We are excited to move forward into the second half of 2009 in a highly flexible financial position. Our cash balance following the IPO is approximately $137 million and we have minimal outstanding debt as of the close of our second quarter of 2009. We are well-capitalized to operate in China's water treatment equipment sector and expect to take advantage of the long-term opportunities driven by stringent government regulations and the ongoing need for advanced water treatment equipment for commercial, industrial and residential uses. We intend to use our proceeds from the IPO to reinforce our competitive position. This includes improving and upgrading our existing manufacturing facilities and production lines, building a new manufacturing facility and a research and development laboratory to produce new water treatment products. We'll also evaluate potential acquisition opportunities and enhance our brand throughout China with increased advertising and trade conference participation."
Non-Cash Share-Based Compensation Expense
The Company recorded non-cash share-based compensation expense of approximately RMB90.5 million ($13.2 million), equivalent to approximately $0.87 per ADS, in the second quarter of 2009. Approximately RMB85.1 million ($12.5 million) was allocated to general and administrative line items, with the remainder allocated to selling expenses and cost of revenue line items. As discussed in the Company's prospectus (Form 424B4), dated June 24, 2009, as filed with the Securities and Exchange Commission, on or prior to the completion of the initial public offering, the Company granted 1.05 million fully vested ordinary shares to certain employees of the Company, but excluding the chief executive officer and chief financial offer, for no consideration, other than par value, which was deemed paid by services already rendered to the Company.
Financial Outlook
Mr. Stephen C. Park concluded, "We are targeting revenue of approximately RMB240 million in the third quarter of 2009. This is based on continued demand for our existing and newly launched products. Our revenue expectation also anticipates slight contributions from pending new product launches, although these will be more meaningful to our financial results in 2010 and beyond."
This forecast reflects the Company's current and preliminary view, which is subject to change.
Conference Call
The Company will host a conference call on Monday, August 3, 2009 at 5:00 PM U.S. Eastern Time (Tuesday, August 4, 2009 at 5:00 AM Beijing/Hong Kong Time). Dial-in information for the earnings conference call is as follows: United States: 1-866-519-4004; China (Landline): 800-819-0121; China (Mobile): 400-620-8038; Hong Kong: 800-933-053; United Kingdom: 0-808-234-6646; International: 65-6735-7955. Conference ID: 21838076.
A telephone replay will be available beginning two hours after the conclusion of the call. Listeners may access the replay by dialing: United States: 1-866-214-5335; China North: 10-800-714-0386; China South:
10-800-140-0386; Hong Kong: 800-901-596; United Kingdom: 0-800-731-7846; International: 61-2-8235-5000. Conference ID: 21838076.
A live webcast of the conference call will also be available at the investor relations section of the Company's website at
http://www.duoyuan-hq.com .
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company's management uses non-GAAP measures for gross profit, operating income, net income, net income per share and net income per ADS, which are adjusted from results based on GAAP to exclude the compensation cost of share-based awards granted to employees under Statement of Financial Accounting Standard 123R. These non-GAAP financial measures are provided to enhance the investors' overall understanding of the Company's current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
The Company's management team believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding share-based compensation expenses, which may not be indicative of its operating performance. Management uses both GAAP and
non-GAAP information in evaluating and operating the business internally and therefore deems it important to provide all of this information to investors. Management also believes that these non-GAAP financial measures facilitate comparisons to the Company's historical performance.
The tables below include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.
About Duoyuan Global Water Inc.
Duoyuan Global Water Inc. is a leading China-based domestic water treatment equipment supplier. Duoyuan's product offerings address the key steps in the water treatment process, such as filtration, water softening, water-sediment separation, aeration, disinfection and reverse osmosis. Duoyuan offers a comprehensive set of complementary products across three product categories: circulating water treatment, water purification and wastewater treatment. The Company has an extensive local distribution network, which provides proximity to end-user customers and responsiveness to local market demand. Learn more at http://www.duoyuan-hq.com .
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. These forward-looking statements may include, but are not limited to, statements containing words such as "may," "could," "would," "plan," "anticipate," "believe," "estimate," "predict," "potential," "expects," "intends" and "future" or similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to change at any time. These
forward-looking statements are based upon management's current expectations and are subject to a number of risks, uncertainties and contingencies, many of which are beyond the Company's control that may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's final prospectus, dated June 24, 2009, filed with the Securities and Exchange Commission, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
1. This announcement contains translations of certain Renminbi amounts
into US dollars at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from Renminbi to US
dollars as of and for the quarter ended June 30, 2009, were made at
the noon buying rate of RMB6.8302 to USD1.00 on June 30, 2009 in the
City of New York for cable transfers in Renminbi per US dollar as
certified for customs purposes by the Federal Reserve Bank of New York.
Duoyuan Global Water makes no representation that the Renminbi or US
dollar amounts referred to in this press release could have been or
could be converted into US dollars or Renminbi, at any particular rate
or at all.
2. American Depositary Shares, which are traded on the New York Stock
Exchange, are equivalent to ordinary shares at a ratio of 1:2.
DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES
UNAUDITED NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30,
2008 2009 2009
RMB RMB US$
REVENUE 161,374,462 213,729,501 $31,291,836
COST OF REVENUE 87,247,684 107,656,190 15,761,792
GROSS PROFIT 74,126,778 106,073,311 15,530,044
RESEARCH AND DEVELOPMENT EXPENSES 4,004,364 4,159,454 608,980
SELLING EXPENSES 8,289,756 9,420,611 1,379,258
GENERAL AND ADMINISTRATIVE
EXPENSES 3,839,532 4,214,035 616,971
OPERATING INCOME 57,993,126 88,279,211 12,924,835
INTEREST EXPENSE (829,840) (298,540) (43,709)
OTHER INCOME 448,291 245,370 35,924
LOSS FROM SALE OF PROPERTY (3,204,479) -- --
INCOME BEFORE INCOME TAXES 54,407,098 88,226,041 12,917,050
PROVISION FOR INCOME TAXES 10,749,058 22,888,945 3,351,138
NET INCOME 43,658,040 65,337,096 $9,565,912
Earnings per share:
Basic 1.46 2.16 $0.32
Diluted 1.46 2.16 $0.32
Earnings per ADS:
Basic 2.91 4.31 $0.63
Diluted 2.91 4.31 $0.63
Weighted average number of shares
outstanding:
Basic 30,000,000 30,301,157 30,301,157
Diluted 30,000,000 30,314,176 30,314,176
SIX MONTHS ENDED JUNE 30,
2008 2009 2009
RMB RMB US$
REVENUE 248,196,483 334,375,190 $48,955,402
COST OF REVENUE 139,520,276 173,834,236 25,450,827
GROSS PROFIT 108,676,207 160,540,954 23,504,575
RESEARCH AND DEVELOPMENT EXPENSES 7,595,616 9,269,134 1,357,081
SELLING EXPENSES 15,740,162 18,279,616 2,676,293
GENERAL AND ADMINISTRATIVE
EXPENSES 7,305,391 5,042,547 738,272
OPERATING INCOME 78,035,038 127,949,657 18,732,929
INTEREST EXPENSE (1,877,018) (624,910) (91,492)
OTHER INCOME 774,191 442,332 64,761
LOSS FROM SALE OF PROPERTY (3,204,479) -- --
INCOME BEFORE INCOME TAXES 73,727,732 127,767,079 18,706,198
PROVISION FOR INCOME TAXES 15,025,997 33,496,807 4,904,220
NET INCOME 58,701,735 94,270,272 $13,801,978
Earnings per share:
Basic 1.96 3.14 $0.46
Diluted 1.96 3.14 $0.46
Earnings per ADS:
Basic 3.91 6.28 $0.92
Diluted 3.91 6.28 $0.92
Weighted average number of shares
outstanding:
Basic 30,000,000 30,003,328 30,003,328
Diluted 30,000,000 30,009,873 30,009,873
DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30,
2008 2009 2009
RMB RMB US$
REVENUE 161,374,462 213,729,501 $31,291,836
COST OF REVENUE 87,247,684 109,030,863 15,963,056
GROSS PROFIT 74,126,778 104,698,638 15,328,780
RESEARCH AND DEVELOPMENT EXPENSES 4,004,364 4,159,454 608,980
SELLING EXPENSES 8,289,756 13,405,527 1,962,684
GENERAL AND ADMINISTRATIVE
EXPENSES 3,839,532 89,325,700 13,078,050
OPERATING INCOME (LOSS) 57,993,126 (2,192,043) (320,934)
INTEREST EXPENSE (829,840) (298,540) (43,709)
OTHER INCOME 448,291 245,370 35,924
LOSS FROM SALE OF PROPERTY (3,204,479) -- --
INCOME (LOSS) BEFORE INCOME TAXES 54,407,098 (2,245,213) (328,719)
PROVISION FOR INCOME TAXES 10,749,058 22,888,945 3,351,138
NET INCOME (LOSS) 43,658,040 (25,134,158) $(3,679,857)
Earnings (loss) per share:
Basic 1.46 (0.83) $(0.12)
Diluted 1.46 (0.83) $(0.12)
Earnings (loss) per ADS:
Basic 2.91 (1.66) $(0.24)
Diluted 2.91 (1.66) $(0.24)
Weighted average number of shares
outstanding:
Basic 30,000,000 30,301,157 30,301,157
Diluted 30,000,000 30,314,176 30,314,176
SIX MONTHS ENDED JUNE 30,
2008 2009 2009
RMB RMB US$
REVENUE 248,196,483 334,375,190 $48,955,402
COST OF REVENUE 139,520,276 175,208,909 25,652,091
GROSS PROFIT 108,676,207 159,166,281 23,303,311
RESEARCH AND DEVELOPMENT EXPENSES 7,595,616 9,269,134 1,357,081
SELLING EXPENSES 15,740,162 22,264,532 3,259,719
GENERAL AND ADMINISTRATIVE
EXPENSES 7,305,391 90,154,212 13,199,351
OPERATING INCOME (LOSS) 78,035,038 37,478,403 5,487,160
INTEREST EXPENSE (1,877,018) (624,910) (91,492)
OTHER INCOME 774,191 442,332 64,761
LOSS FROM SALE OF PROPERTY (3,204,479) -- --
INCOME (LOSS) BEFORE INCOME TAXES 73,727,732 37,295,825 5,460,429
PROVISION FOR INCOME TAXES 15,025,997 33,496,807 4,904,221
NET INCOME (LOSS) 58,701,735 3,799,018 $556,208
Earnings (loss) per share:
Basic 1.96 0.13 $0.02
Diluted 1.96 0.13 $0.02
Earnings (loss) per ADS:
Basic 3.91 0.25 $0.04
Diluted 3.91 0.25 $0.04
Weighted average number of shares
outstanding:
Basic 30,000,000 30,003,328 30,003,328
Diluted 30,000,000 30,009,873 30,009,873
DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, June 30, June 30,
2008 2009 2009
(AUDITED) (UNAUDITED) (UNAUDITED)
RMB RMB US$
CURRENT ASSETS:
Cash 198,518,061 936,401,552 $137,097,237
Accounts receivable 137,549,786 144,325,246 21,130,457
Inventories, net of reserve
for obsolescence 46,726,339 37,261,962 5,455,472
Other receivables 46,500 31,000 4,539
Other current assets 645,376 577,242 84,513
Deposits 9,990,000 -- --
Total current assets 393,476,062 1,118,597,002 163,772,218
PLANT AND EQUIPMENT, net 117,681,359 139,863,624 20,477,237
OTHER ASSETS:
Prepaid leases 22,481,491 22,219,648 3,253,147
Deferred tax assets 4,446,899 4,446,899 651,064
Total other assets 26,928,390 26,666,547 3,904,211
Total assets 538,085,811 1,285,127,173 $188,153,666
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable 20,000,000 20,000,000 $2,928,172
Accounts payable 38,696,788 39,707,526 5,813,523
Other payables 24,927,232 30,872,486 4,519,997
Taxes payable 10,768,521 24,530,052 3,591,411
Total current liabilities 94,392,541 115,110,064 16,853,103
SHAREHOLDERS' EQUITY:
Ordinary shares, US$0.000033 par
value: Authorized shares -
1,500,000,000; Issued and
outstanding - 30,000,000 shares
at December 31, 2008 and
43,702,631 shares at
June 30, 2009 7,295 10,384 1,520
Additional paid-in capital 132,455,705 854,977,437 125,176,047
Statutory reserves 36,413,141 45,567,440 6,671,465
Retained earnings 274,817,129 269,461,848 39,451,531
Total shareholders' equity 443,693,270 1,170,017,109 171,300,563
Total liabilities and
shareholders' equity 538,085,811 1,285,127,173 $188,153,666
DUOYUAN GLOBAL WATER INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30,
2008 2009 2009
RMB RMB US$
GAAP COST OF REVENUE 87,247,684 109,030,863 $15,963,056
Adjustments:
Share-based compensation -- (1,374,673) (201,264)
NON-GAAP COST OF REVENUE 87,247,684 107,656,190 15,761,792
GAAP GROSS PROFIT 74,126,778 104,698,638 15,328,780
GAAP GROSS MARGIN 45.9% 49.0% 49.0%
Adjustments:
Share-based compensation -- 1,374,673 201,264
NON-GAAP GROSS PROFIT 74,126,778 106,073,311 15,530,044
NON-GAAP GROSS MARGIN 45.9% 49.6% 49.6%
GAAP SELLING EXPENSES 8,289,756 13,405,527 1,962,684
Adjustments:
Share-based compensation -- (3,984,916) (583,426)
NON-GAAP SELLING EXPENSES 8,289,756 9,420,611 1,379,258
GAAP GENERAL AND ADMINISTRATIVE
EXPENSES 3,839,532 89,325,700 13,078,050
Adjustments:
Share-based compensation -- (85,111,665) (12,461,079)
NON-GAAP GENERAL AND ADMINISTRATIVE
EXPENSES 3,839,532 4,214,035 616,971
OPERATING INCOME (LOSS) 57,993,126 (2,192,043) (320,934)
Adjustments:
Share-based compensation -- 90,471,254 13,245,769
NON-GAAP OPERATING INCOME 57,993,126 88,279,211 12,924,835
NET INCOME (LOSS) 43,658,040 (25,134,158) (3,679,857)
Adjustments:
Share-based compensation -- 90,471,254 13,245,769
NON-GAAP NET INCOME 43,658,040 65,337,096 $9,565,912
NON-GAAP Earnings per share:
Basic 1.46 2.16 $0.32
Diluted 1.46 2.16 $0.32
NON-GAAP Earnings per ADS:
Basic 2.91 4.31 $0.63
Diluted 2.91 4.31 $0.63
Weighted average number of shares
outstanding:
Basic 30,000,000 30,301,157 30,301,157
Diluted 30,000,000 30,314,176 30,314,176
SIX MONTHS ENDED JUNE 30,
2008 2009 2009
RMB RMB US$
GAAP COST OF REVENUE 139,520,276 175,208,909 $25,652,091
Adjustments:
Share-based compensation -- (1,374,673) (201,264)
NON-GAAP COST OF REVENUE 139,520,276 173,834,236 25,450,827
GAAP GROSS PROFIT 108,676,207 159,166,281 23,303,311
GAAP GROSS MARGIN 43.8% 47.6% 47.6%
Adjustments:
Share-based compensation -- 1,374,673 201,264
NON-GAAP GROSS PROFIT 108,676,207 160,540,954 23,504,575
NON-GAAP GROSS MARGIN 43.8% 48.0% 48.0%
GAAP SELLING EXPENSES 15,740,162 22,264,532 3,259,719
Adjustments:
Share-based compensation -- (3,984,916) (583,426)
NON-GAAP SELLING EXPENSES 15,740,162 18,279,616 2,676,293
GAAP GENERAL AND ADMINISTRATIVE
EXPENSES 7,305,391 90,154,212 13,199,351
Adjustments:
Share-based compensation -- (85,111,665) (12,461,079)
NON-GAAP GENERAL AND ADMINISTRATIVE
EXPENSES 7,305,391 5,042,547 738,272
OPERATING INCOME (LOSS) 78,035,038 37,478,403 5,487,160
Adjustments:
Share-based compensation -- 90,471,254 13,245,769
NON-GAAP OPERATING INCOME 78,035,038 127,949,657 18,732,929
NET INCOME (LOSS) 58,701,735 3,799,018 556,208
Adjustments:
Share-based compensation -- 90,471,254 13,245,770
NON-GAAP NET INCOME 58,701,735 94,270,272 $13,801,978
NON-GAAP Earnings per share:
Basic 1.96 3.14 $0.46
Diluted 1.96 3.14 $0.46
NON-GAAP Earnings per ADS:
Basic 3.91 6.28 $0.92
Diluted 3.91 6.28 $0.92
Weighted average number of shares
outstanding:
Basic 30,000,000 30,003,328 30,003,328
Diluted 30,000,000 30,009,873 30,009,873
