HONG KONG, May 15 /PRNewswire-Asia/ -- NetDragon Websoft Inc. (“NetDragon”, with its subsidiaries collectively the “Group”; Stock Code: 777), one of the leading game developers and operators in the PRC, today announced its unaudited results for the quarter ended 31 March 2009.
Financial Highlights
RMB Million 1Q2009 4Q2008
(Unaudited) (Unaudited) QoQ
Revenue 173.9 136.5 27.4%
Gross Profit 155.0 118.1 31.2%
Profit Attributable to
Shareholders 48.9 73.2 -33.2%
HKFRSs Earnings Per Share RMB9.31cents RMB13.89 cents -33.0%
Normalized profit(1) 48.9 43.8 11.6%
Normalized profit per share(1) RMB9.31 cents RMB8.31 cents 12.0%
(1) Non-HKFRSs presentation excluding government grants and income tax
refund.
Metrics
Three months ended
1Q2009 4Q 2008 3Q2008 2Q2008 1Q2008
PCU 695,000 591,000 544,000 697,000 669,000
ACU 333,000 317,000 311,000 355,000 313,000
Mr. Liu Dejian, Chairman and Executive Director of NetDragon, said, “2009 marks the 10th anniversary of NetDragon’s founding, and we are pleased with our strong operating results during the first quarter of this year. Sequentially, our revenue rose 27.4% and normalized profit per share rose 12.0%. With a solid and diversified pipeline for 2009 and beyond, we are well-positioned to capture the immense market opportunities both in the PRC and abroad.”
Mr. Liu concluded, “We believe that rapid and high-quality game development is critical to our success. We will continue to invest in, and significantly expand our game development capabilities through the recruitment of experienced, top-notch game developers and designers. Our professional game development team coupled with a modified and enhanced game development platform will enable the Group to quickly and frequently develop and introduce new online games and upgrades to its existing games. Finally, as we build our R&D ‘power plant’ for future growth, we will continue to invest in emerging technologies and new media opportunities, thereby laying the foundations for sustainable long-term growth.”
For more details please visit http://www.nd.com.cn or http://www.nd.com.cn/ir for the Group’s formal results announcement as filed with the Stock Exchange of Hong Kong.
Non-HKFRSs Financial Measures
To supplement the financial measures prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), this press release includes
non-HKFRSs financial measures of normalized profit and normalized profit per share, which excludes the impact of government grants and tax refunds. The Group believes these non-HKFRSs financial measures are important to help investors to understand the Group’s current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and access the Company’s core operating results. These
non-HKFRSs financial measures should be considered in addition to financial measures prepared in accordance with HKFRSs, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with HKFRSs.
About NetDragon
NetDragon Websoft Inc. is one of the leading online game developers and operators in the PRC. The Group’s game portfolio comprises of a range of MMORPGs (Massively Multiplayer Online Role-Playing Games) that cater to various types of players and gaming preferences. The Group has successfully developed and marketed many popular online titles of various styles. Its current offerings include the games Way of the Five, Eudemons Online, Conquer Online, Zero Online, Tou Ming Zhuang Online and Heroes of Might and Magic Online. Some of the games are also available in foreign languages, including English, French and Spanish. The Group also has several games currently in development, including Tian Yuan, Disney Fantasy Online, Dungeon Keeper Online and CJ7 Online, which are expected to be launched from 2009.
Unaudited Condensed Consolidated Income Statement
Three months ended
RMB’000 31 Mar 2008 31 Dec 2008 31 Mar 2009
Revenue 175,556 136,466 173,898
Cost of revenue (16,533) (18,322) (18,882)
Gross profit 159,023 118,144 155,016
Gross Profit margin 90.6% 86.6% 89.1%
Other revenue 5,375 44,974 5,934
Selling and marketing expenses (15,436) (32,913) (27,716)
Administrative expenses (25,907) (218) (35,563)
Development costs (17,679) (31,480) (42,574)
Other operating expenses (7,908) (31,560) (1,381)
Share of loss of an associate 0 (276) (214)
Profit before tax 97,468 66,671 53,502
Income tax expenses (27,534) 6,521 (4,703)
Profit for the period 69,934 73,192 48,799
Net profit margin 39.8% 53.6% 28.1%
Minority interests (52) 0 (144)
Profit attributable to
equity holders of the company 69,986 73,192 48,943
