BEIJING, May 19 /Xinhua-PRNewswire/ -- Perfect World Co., Ltd.
(Nasdaq: PWRD) (“Perfect World” or the “Company”), a leading online game developer and operator in China, today announced its unaudited financial results for the first quarter ended March 31, 2008
First Quarter 2008 Highlights(1)
-- Total revenues were RMB303.2 million (USD43.2 million), an increase of
17.3% from 4Q07 and 247.8% from 1Q07
-- Gross profit was RMB265.6 million (USD37.9 million), an increase of
20.9% from 4Q07 and 290.9% from 1Q07
-- Operating profit was RMB161.6 million (USD23.0 million), an increase of
17.6% from 4Q07 and 285.1% from 1Q07
-- Net income was RMB158.4 million (USD22.6 million), an increase of 8.3%
from 4Q07 and 295.8% from 1Q07
-- Basic and diluted earnings per ADS were RMB2.83(USD0.40) and RMB2.67
(USD0.38), respectively, as compared to basic and diluted earnings per
ADS of RMB2.62 and RMB2.48, respectively, in 4Q07, and basic and
diluted earnings per ADS of RMB1.27 and RMB0.82, respectively, in 1Q07
-- Aggregate average concurrent users (ACU) for games under operation were
approximately 660,000, an increase of 5.8% from 4Q07 and 177.8% from
1Q07
-- Active paying customers (APC) for games under the item-based revenue
model were approximately 1,701,000, an increase of 8.7% from 4Q07 and
144.7% from 1Q07
-- Average revenue per active paying customer (ARPU) for games under the
item-based revenue model was RMB151, an increase of 7.0% from 4Q07 and
58.2% from 1Q07
-- Launched “Chi Bi” on January 25, 2008. “Chi Bi” is a free-to-play
3D online MMORPG using the item-based revenue model.
-- Launched the Company’s first 3D online casual game, “Hot Dance
Party,” in March, 2008 using the item-based revenue model. Since
April 2008, the Company has offered this game to users free of charge
for all in-game items in order to attract more users to play the game.
-- Launched expansion packs for each of the Company’s MMORPGs, including
“Lunar New Year Edition” for “Perfect World,” “Lunar New Year
Edition” for “Legend of Marital Arts,” “Destiny by the Rubik’s
Cube” for “Perfect World II,” “Fantasy Moon Palace” for “Zhu
Xian,” and “Zi Long’s Spear” for “Chi Bi.”
-- Launched “Perfect Festival,” a marketing campaign that included many
interactive online and offline activities
-- Upgraded customer service system by installing Avaya call center
hardware system and Elite call center solution software to improve the
Company’s customer service capabilities, which were activated on
January 5, 2008
-- Entered into new overseas licensing agreements with Cubinet
Interactive(s) Pte Ltd. to license “Legend of Martial Arts” in
Vietnam and “Zhu Xian” in Vietnam, Thailand, Malaysia and Singapore
-- Launched “Perfect World II” in Thailand through Cubinet Interactive
Sdn Bhd. in January 2008
-- Launched “Legend of Martial Arts” in Japan through C&C Media Co., Ltd.
in February 2008
-- Launched “Legend of Martial Arts” in Malaysia and Singapore through
Cubinet Interactive(s) Pte Ltd. in March 2008
-- Entered into agreements for the purchase of office premises with an
area of approximately 55,000 square meters in Chaoyang District of
Beijing in March 2008. The aggregate purchase consideration was
approximately RMB700 million and the Company has used its existing cash
to pay approximately RMB580 million as of May 19, 2008, with most of
the remaining consideration expected to be paid by using the Company’s
existing cash in the second quarter of 2008. The newly purchased
premises will be used as the Company’s principal executive offices to
meet the demand arising from its recent business expansion and
headcount increase. The Company will acquire the premises after
completing relevant real estate registration procedures.
(1) The U.S. dollar (USD) amounts disclosed in this press release are
presented solely for the convenience of the reader. The conversion of
Renminbi (RMB) into USD in this release is based on the noon buying
rate in The City of New York for cable transfers in RMB per USD as
certified for customs purposes by the Federal Reserve Bank of New York
as of March 31, 2008, which was RMB7.0120 to USD1.00. The percentages
stated are calculated based on RMB.
“I am very pleased by our first quarter results which are mainly attributed to the effective execution of our core strategies,” commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. “We successfully launched open beta testing for ‘Chi Bi’ and ‘Hot Dance Party’ and continued to develop a sustainable pipeline with four new games under development, including ‘Pocketpet Journey West.’ I believe our ability to maintain user interest in our existing games and expand and diversify our game portfolio has become one of the key aspects of our growth. In terms of overseas development, we signed several new licensing agreements in the past quarter as a result of our continued efforts to expand internationally and further enhance product features. Furthermore, pursuing partnerships and alliances has always been one of our primary growth strategies, and we are happy to report that, in April 2008, we made a strategic investment in Chengdu Seasky Digital Entertainment Co., Ltd. (‘Seasky’), which is a strong online game development company in Chengdu, China. Seasky’s strong research and development capabilities and solid future potential should make it a great partner for us.
Looking forward, we will continue to execute our primary growth strategies which are based on further developing our platform, improving customer services and extending our reach and our brand globally. We are in the process of developing four new MMORPGs, including a 3D MMORPG named ‘Pocketpet Journey West,’ developed based on ‘Journey to the West,’ one of the four classical novels of Chinese literature. Additionally, we plan to integrate existing resources, including game development, sales and marketing and a diverse game portfolio to build a strong platform and expand our proprietary game development technology to overseas markets. I believe our extensive knowledge and experience in the domestic market, powerful technology capabilities and high quality service that already matches global standards will help us continue to grow and become one of the global leaders in the online game industry.”
First Quarter 2008 Financial Results
Total Revenues
Total revenues were RMB303.2 million (USD43.2 million) in 1Q08, an increase of 17.3%, or RMB44.8 million, from RMB258.4 million in 4Q07 and an increase of 247.8%, or RMB216.0 million, from RMB87.2 million in 1Q07.
Online game operation revenues were RMB264.5 million (USD37.7 million) in 1Q08, an increase of 14.9%, or RMB34.3 million, from RMB230.2 million in 4Q07 and an increase of 245.4%, or RMB187.9 million, from RMB76.6 million in 1Q07. The sequential increase in online game operation revenues primarily resulted from the successful launch of Chi Bi, expansion packs for the Company’s existing MMORPGs and the successful implementation of the “Perfect Festival” marketing campaign.
The ACU was approximately 660,000 in 1Q08, an increase of 5.8%, or 36,000, from 624,000 in 4Q07 and an increase of 177.8%, or 423,000, from 237,000 in 1Q07. The ARPU for games under the item-based revenue model was RMB151 in 1Q08, an increase of 7.0%, or RMB10, from RMB141 in 4Q07 and an increase of 58.2%, or RMB56, from RMB95 in 1Q07. The APC for games under the item-based revenue model was approximately 1,701,000 in 1Q08, an increase of 8.7%, or 136,000, from 1,565,000 in 4Q07 and an increase of 144.7%, or 1,006,000, from 695,000 in 1Q07.
Overseas licensing revenues were RMB38.7 million (USD5.5 million) in 1Q08, an increase of 37.2%, or RMB10.5 million, from RMB28.2 million in 4Q07 and an increase of 265.6%, or RMB28.1 million, from RMB10.6 million in 1Q07. The sequential increase in overseas licensing revenues was mainly due to the recognition of one-time initial license fees in relation to licensing agreements with C&C Media Co., Ltd. in Japan and Cubinet Interactive(s) Pte Ltd. in Malaysia and Singapore for “Legend of Marital Arts” and an increase in usage-based royalty fees from the Taiwan and Japan markets.
Cost of Revenues
The cost of revenues was RMB37.5 million (USD5.4 million) in 1Q08, a decrease of 2.8%, or RMB1.1 million, from RMB38.6 million in 4Q07 and an increase of 95.6%, or RMB18.3 million, from RMB19.2 million in 1Q07. The decrease from 4Q07 was mainly due to a reduction in Internet Data Center, or IDC, costs, and was partially offset by an increase in staff costs, server depreciation expenses and VAT and other related taxes.
Gross Profit and Gross Margin
Gross profit was RMB265.6 million (USD37.9 million) in 1Q08, an increase of 20.9%, or RMB45.8 million, from RMB219.8 million in 4Q07, and an increase of 290.9%, or RMB197.6 million, from RMB68.0 million in 1Q07. Gross margin was 87.6% in 1Q08, which increased from 85.1% in 4Q07 and 78.0% in 1Q07. The sequential improvement in gross margin was mainly due to a higher level of economies of scale generated from rapid revenue growth, a reduction in IDC costs and an increase in overseas licensing revenues, which have a higher gross margin.
Operating Expenses
Operating expenses were RMB104.0 million (USD14.8 million) in 1Q08, an increase of 26.3%, or RMB21.6 million, from RMB82.4 million in 4Q07, and an increase of 300.2%, or RMB78.0 million, from RMB26.0 million in 1Q07. The sequential increase in operating expenses was mainly attributed to higher R&D expenses, sales and marketing expenses and general and administrative expenses.
R&D expenses increased by 3.0%, or RMB0.7 million, from RMB22.7 million in 4Q07 to RMB23.4 million (USD3.3 million) in 1Q08. This was primarily due to an increase in share-based compensation expenses, and was partially offset by a decrease in staff costs because a special year-end bonus was accrued in R&D expenses in 4Q07.
Sales and marketing expenses increased by 36.5%, or RMB16.3 million, from RMB44.4 million in 4Q07 to RMB60.7 million (USD8.7 million) in 1Q08. This was largely due to an increase in advertising and promotional expenses associated with the launch of “Chi Bi” and “Hot Dance Party.”
General and administrative expenses increased by 31.1%, or RMB4.7 million, from RMB15.2 million in 4Q07 to RMB19.9 million (USD2.8 million) in 1Q08. This was primarily due to an increase in professional fees, share-based compensation expenses and website domain name acquisition expenses, and was partially offset by a decrease in staff costs because a special year-end bonus was accrued in general and administrative expenses in 4Q07.
Operating Profit
Operating profit was RMB161.6 million (USD23.0 million) in 1Q08, an increase of 17.6%, or RMB24.2 million, from RMB137.4 million in 4Q07, and an increase of 285.1%, or RMB119.6 million, from RMB42.0 million in 1Q07.
Total Other Income
Total other income was RMB2.4 million (USD0.3 million) in 1Q08, a decrease of 81.6%, or RMB10.7 million, from RMB13.1 million in 4Q07, and a substantial increase of RMB2.3 million, from RMB0.1 million in 1Q07. The decrease from 4Q07 was primarily due to an increase in realized foreign exchange loss of approximately RMB4.5 million, and a decrease in government grant subsidy income of approximately RMB4.5 million, and a decrease in interest income of approximately RMB2.5 million.
Income Tax Expense
Income tax expense was RMB5.6 million (USD0.8 million) in 1Q08, an increase of 32.4%, or RMB1.3 million, from RMB4.3 million in 4Q07 and an increase of 175.6%, or RMB3.6 million, from RMB2.0 million in 1Q07. Income tax expense represents withholding income tax for overseas licensing revenues. The sequential increase was mainly due to the increase in overseas licensing revenues in 1Q08.
Net Income
Net income was RMB158.4 million (USD22.6 million) in 1Q08, an increase of 8.3%, or RMB12.2 million, from RMB146.2 million in 4Q07, and an increase of 295.8%, or RMB118.4 million, from RMB40.0 million in 1Q07. Basic and diluted earnings per ADS were RMB2.83 (USD0.40) and RMB2.67 (USD0.38), respectively, in 1Q08, as compared to basic and diluted earnings per ADS of RMB2.62 and RMB2.48, respectively, in 4Q07, and basic and diluted earnings per ADS of RMB1.27 and RMB0.82, respectively, in 1Q07.
Cash and Cash Equivalents
As of March 31, 2008, the Company had RMB1.6 billion (USD226.5 million) of cash and cash equivalents, an increase of 6.2%, or RMB 92.0 million, from RMB1.5 billion as of December 31, 2007. The sequential increase was mainly due to net cash inflow generated from the Company’s online game operations and overseas licensing, partially offset by the payments of consideration for the acquisition of the new office premises.
Recent Developments
Launched Official Website for “Pocketpet Journey West”
The Company unveiled the official website of “Pocketpet Journey West,” the Company’s newest 3D MMORPG based on “Journey to the West,” one of the four great classic novels of Chinese literature, in April 2008.
Entered into New Overseas Licensing Agreements with Soft-World International Corp. for Zhu Xian
On April 5, 2008, the Company announced that it had entered into new overseas licensing agreements with Soft-World International Corp. to license the Company’s “Zhu Xian” in Taiwan.
Entered into New Overseas Licensing Agreements with C&C Media Co., Ltd. for Zhu Xian
On April 5, 2008, the Company announced that it had entered into new overseas licensing agreements with C&C Media Co., Ltd. to license the Company’s “Zhu Xian” in Japan.
Established U.S. Subsidiary
In April, 2008, the Company established Perfect World Entertainment Inc, or PW USA, a Delaware corporation and its wholly owned subsidiary, to capture potential business opportunities in North America. PW USA is expected to primarily focus on solidifying the Company’s international expansion strategy.
Made a Strategic Investment in Chengdu Seasky Digital Entertainment Co., Ltd.
In April 2008, the Company entered into a capital increase and share transfer agreement with Chengdu Seasky Digital Entertainment Co., Ltd., or Chengdu Seasky, and its equity holders, to acquire a 20% equity interest in Chengdu Seasky for consideration of US$3.0 million in cash. Chengdu Seasky is principally engaged in the design and development of online games in China. The investment will be accounted for under the equity method.
Appointed Mr. Robert Xiao as the Company’s Vice President of Human Resources
Mr. Robert Xiao joined Perfect World as Vice President of Human Resources on May 1, 2008. Mr. Xiao will be responsible for setting the Company’s overall human resources strategy, and overseeing human resources processes and tools, recruiting and training, leadership and talent development, performance management, and overall branding in the employment market. Prior to joining Perfect World, Mr. Xiao was the director of talent management at Dell Greater China. Prior to Dell, he also worked in human resources at Philips, Cisco and Motorola. Mr. Xiao received a Bachelor’s degree in physics from Tsinghua University in Beijing, China. He received both a Master’s and a Ph.D. degree in engineering from the University of Southern California in the U.S.
Mr. Xiao will lead initiatives to further strengthen the Company’s human resources management system, functions and capacity.
Special Announcement
The Company has suspended its game services since May 19, and will resume on May 22, in response to the announcement made by the State Council of the People’s Republic of China on May 18, for the three-day national mourning for earthquake victims.
Business Outlook
Based on the Company’s current operations, total revenues for the second quarter of 2008 are expected to be between RMB303 million and RMB318 million. This represents an increase of 0% - 5% on a sequential basis and reflects the impact of suspending game services in response to the three-day national mourning for earthquake victims and the earthquake’s impact on the Company’s operation in Sichuan. In addition, the Company has incurred and expects to continue to incur additional operating expenses in the second quarter of 2008, including increase in R&D expenses in connection with Beijing and Shanghai operations and other operating expenses in connection with the new U.S. Subsidiary, which will reduce operating margin and net margin for the second quarter.
Conference Call
Perfect World will host a conference call and live webcast at 8:00 a.m. Eastern Daylight Time (EDT) (8:00 p.m., Beijing time) on Monday, May 19, 2008.
The dial-in details for the live conference call are as follows:
-- U.S. toll free number: +1-866-713-8563
-- International dial-in number: +1-617-597-5311
-- China toll free number: 10-800-130-0399
Passcode: PWRD
A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World’s website at http://www.pwrd.com.
A telephone replay of the call will be available after the conclusion of the conference call through 10:00 a.m. Eastern Daylight Time, May 27, 2008.
The dial-in details for the replay are as follows:
-- U.S. toll free number: +1-888-286-8010
-- International dial-in number: +1-617-801-6888
Passcode: 66682483
About Perfect World Co., Ltd. ( http://www.pwrd.com )
Perfect World Co., Ltd. (Nasdaq: PWRD) is a leading online game developer and operator in China. Perfect World primarily develops three-dimensional (“3D”) online games based on the proprietary Angelica 3D game engine and game development platform. The Company’s strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company’s current portfolio of self-developed online games includes 3D massively multiplayer online role playing games (“MMORPGs”): “Perfect World,” “Legend of Martial Arts,” “Perfect World II,” “Zhu Xian,” and “Chi Bi;” and a 3D online casual game: “Hot Dance Party.” While most revenues are generated in China, the Company’s games have been licensed to leading game operators in more than ten countries and regions. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.
Safe Harbor Statements
This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the management’s quotations and “Business Outlook” contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of our games and in-game items in China and elsewhere, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, our ability to maintain an effective system of internal control over financial reporting, and changes of the regulatory environment in China. Further information regarding these and other risks is included in Perfect World’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. All information provided in this press release and in the attachments is as of May 19, 2008, and Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For further information, please contact:
Perfect World Co., Ltd.
Vivien Wang
Investor Relations Officer
Tel: +86-10-5885-1813
Fax: +86-10-5885-6899
Email: ir@pwrd.com
Web: http://www.pwrd.com
Christensen Investor Relations
Peter Homstad
Tel: +1-480-614-3026
Fax: +1-480-614-3033
Email: phomstad@christensenir.com
Jung Chang
Tel: +852-2117-0861
Fax: +852-2117-0869
Email: jchang@christensenir.com
Perfect World Co., Ltd.
Consolidated Balance Sheets
Audited Unaudited Unaudited
December 31, March 31, March 31,
2007 2008 2008
RMB RMB USD
Assets
Current assets
Cash and cash equivalents 1,496,032,993 1,588,055,501 226,476,826
Accounts receivable 16,796,527 17,426,843 2,485,289
Prepayments and other
assets 22,112,949 24,144,632 3,443,330
Deferred tax assets 731,142 648,684 92,511
Total current assets 1,535,673,611 1,630,275,660 232,497,956
Non current assets
Property, equipment, and
software, net 107,331,206 145,046,059 20,685,405
Intangible assets, net 1,723,048 1,468,769 209,465
Prepayments and other
assets 20,283,302 138,134,419 19,699,717
Deferred tax assets 730,180 772,628 110,187
Total assets 1,665,741,347 1,915,697,535 273,202,730
Liabilities and
Shareholders’ Equity
Current liabilities
Accounts payable 23,464,378 28,649,042 4,085,716
Advances from customers 49,672,384 115,900,295 16,528,850
Salary and welfare payable 30,901,115 16,908,651 2,411,390
Taxes payable 13,374,892 16,108,381 2,297,259
Accrued expenses and other
liabilities 14,175,638 20,118,469 2,869,148
Deferred revenues 123,310,935 166,127,927 23,691,946
Deferred government grants 1,100,000 1,100,000 156,874
Total current liabilities 255,999,342 364,912,765 52,041,183
Deferred revenues 19,365,787 20,975,955 2,991,437
Total liabilities 275,365,129 385,888,720 55,032,620
Commitments
Shareholders’ Equity
Ordinary shares (US$0.0001
par value, 10,000,000,000
shares authorized,
91,309,730 Class A
ordinary shares and
187,975,990 Class B
ordinary shares issued
and outstanding as of
December 31, 2007;
81,235,480 Class A
ordinary shares and
202,753,790 Class B
ordinary shares issued
and outstanding as of
March 31, 2008) 221,081 222,024 31,663
Additional paid-in
capital 1,124,169,036 1,133,025,144 161,583,734
Statutory reserves 29,919,175 29,919,175 4,266,853
Accumulated other
comprehensive loss (31,771,062) (59,549,104) (8,492,456)
Retained earnings 267,837,988 426,191,576 60,780,316
Total Shareholders’
Equity 1,390,376,218 1,529,808,815 218,170,110
Total Liabilities and
Shareholders’ Equity 1,665,741,347 1,915,697,535 273,202,730
Perfect World Co., Ltd.
Unaudited Consolidated Statements of Operations
Three months ended
March 31, December 31, March 31, March 31,
2007 2007 2008 2008
RMB RMB RMB USD
Revenues
Online game
operation
revenues 76,574,669 230,194,222 264,480,379 37,718,251
Overseas
licensing
revenues 10,579,243 28,200,883 38,680,078 5,516,269
Total Revenues 87,153,912 258,395,105 303,160,457 43,234,520
Cost of
revenues (19,195,954) (38,618,961) (37,541,866) (5,353,946)
Gross profit 67,957,958 219,776,144 265,618,591 37,880,574
Operating
expenses
Research
and
development
expenses (6,951,062) (22,725,718) (23,418,800) (3,339,817)
Sales and
marketing
expenses (15,308,116) (44,438,673) (60,666,589) (8,651,824)
General and
administrative
expenses (3,736,933) (15,215,509) (19,943,688) (2,844,222)
Total operating
expenses (25,996,111) (82,379,900) (104,029,077) (14,835,863)
Operating
profit 41,961,847 137,396,244 161,589,514 23,044,711
Other
income/(expenses)
Interest
income 453,357 14,156,626 11,647,866 1,661,133
Others, net (354,726) (1,053,932) (9,236,970) (1,317,309)
Total other
income 98,631 13,102,694 2,410,896 343,824
Profit before
tax 42,060,478 150,498,938 164,000,410 23,388,535
Income tax
expense (2,048,626) (4,265,466) (5,646,822) (805,308)
Net Profit 40,011,852 146,233,472 158,353,588 22,583,227
Cumulative
unearned
dividends
of Series
A Preferred
Share (766,499) -- -- --
Net profit
attributable
to ordinary
shareholders 39,245,353 146,233,472 158,353,588 22,583,227
Net earnings
per share,
basic 0.25 0.52 0.57 0.08
Net earnings
per share,
diluted 0.16 0.50 0.53 0.08
Net earnings
per ADS,
basic 1.27 2.62 2.83 0.40
Net earnings
per ADS,
diluted 0.82 2.48 2.67 0.38
Shares used in
calculating
basic net
earnings per
share 154,285,720 279,285,720 279,610,748 279,610,748
Shares used in
calculating
diluted net
earnings per
share 242,951,028 294,945,237 296,103,511 296,103,511
Total
share-based
compensation
cost included
in:
Cost of
revenues (26,949) (38,209) (388,707) (55,435)
Research
and
development
expenses (278,151) (679,745) (2,840,305) (405,063)
Sales and
marketing
expenses (35,759) (324,124) (729,651) (104,057)
General and
administrative
expenses (158,170) (2,995,652) (3,956,386) (564,231)
Perfect World Co., Ltd.
Unaudited Consolidated Statements of Cash Flows
Three months ended
March 31, December 31, March 31, March 31,
2007 2007 2008 2008
RMB RMB RMB USD
Cash flows from
operating
activities:
Net profit 40,011,852 146,233,472 158,353,588 22,583,227
Adjustments
for:
Share-based
compensation
cost 499,029 4,037,730 7,915,049 1,128,786
Depreciation
and
amortization
expense 1,006,078 2,875,270 4,304,116 613,821
Exchange loss 347,322 5,812,374 10,345,689 1,475,426
Changes in
assets and
liabilities:
Accounts
receivable (831,744) 2,036,676 (1,268,558) (180,912)
Current
prepayments
and other
assets 285,853 (2,592,287) (2,070,147) (295,229)
Deferred tax
assets (753,572) (11,235) (26,987) (3,849)
Due to related
parties (126,900) -- -- --
Non-current
prepayments and
other
assets (28,126) 11,439 (1,589,347) (226,661)
Accounts
payable (2,387,548) 3,936,603 13,281,828 1,894,157
Advances from
customers 5,470,766 (10,869,452) 66,227,911 9,444,939
Salary and
welfare
payable (4,410,214) 15,480,337 (13,992,464) (1,995,503)
Taxes payable (613,175) (688,092) 2,733,489 389,830
Accrued
expenses and
other
liabilities (3,256,539) 4,231,479 6,410,124 914,165
Deferred
revenues 27,563,222 34,112,590 45,138,179 6,437,276
Deferred
government
grants -- (1,400,000) -- --
Net cash
provided by
operating
activities 62,776,304 203,206,904 295,762,470 42,179,473
Cash flows from
investing
activities:
Purchase of
property,
equipment and
software (4,649,663) (83,979,972) (166,168,554) (23,697,740)
Net cash used
in investing
activities (4,649,663) (83,979,972) (166,168,554) (23,697,740)
Cash flows from
financing
activities:
Payments made
by shareholders
for Shareholders’
receivables 126,808 -- -- --
Proceeds from
IPO, net
of issuance
costs -- (8,105,195) -- --
Exercise of
share
options -- -- 790,616 112,752
Net cash
provided by /
(used in)
financing
activities 126,808 (8,105,195) 790,616 112,752
Effect of
exchange rate
changes on cash
and cash
equivalents (347,322) (28,657,671) (38,362,024) (5,470,910)
Net increase in
cash 57,906,127 82,464,066 92,022,508 13,123,575
Cash and cash
equivalents,
beginning of
the period 101,356,892 1,413,568,927 1,496,032,993 213,353,251
Cash and cash
equivalents,
end of the
period 159,263,019 1,496,032,993 1,588,055,501 226,476,826
Supplemental
disclosures
of cash flow
information:
Cash paid
during the
period for
income taxes (1,412,029) (4,290,112) (5,508,722) (785,614)
