HONG KONG, February 22, 2012 /PRNewswire-Asia-FirstCall/ -- Shanda Games Limited ("Shanda Games" or the "Company") (NASDAQ: GAME), a leading online game developer, operator and publisher in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2011.
Q4 2011 Non-GAAP Financial Highlights
Q4 2011 GAAP Financial Highlights
Q4 2011 Operating Highlights
Full Year 2011 Non-GAAP Financial Highlights
Full Year 2011 GAAP Financial Highlights
"During the fourth quarter of 2011, we again delivered financial results that met our expectations and achieved multiple financial and operational records as our All-Star, All-Platform and All-Region strategy continues to yield strong results," said Mr. Alan Tan, Chairman and CEO of Shanda Games. "We expect great things from our strong portfolio of games, exciting pipeline, growing overseas presence and new platform as our execution of this strategy and our ability to innovate has now produced consecutive quarters of revenue growth."
"Our revenues have been more diversified as we strive to provide a constant stream of new content. In addition to the successful launch of Mir III in the fourth quarter, we were able to further expand our content offerings by partnering with Snail Game to jointly operate Age of Wushu and licensing RIFT from Trion Worlds for operation in China. We also look forward to the release of Woool II, a major expansion pack of our legacy game Woool this summer. In addition, we continued to make efforts in developing mobile games and launching new technologies that provide ease of access to our games through micro clients. We believe these recent developments combined with the anticipated launches of other high-quality games in our pipeline will ensure the strength of our portfolio and capture the attention of game players across China."
"The strength of our portfolio and pipeline has also significantly enhanced our global footprint this past quarter. Overseas revenue grew by 30% quarter-over-quarter and 89% year-over-year. This remarkable performance demonstrates our ability to identify and take advantage of opportunities for licensing, publishing and operating games in new regions. In addition to Singapore and the United States, Dragon Nest will soon be available in new regions including Thailand, Indonesia, Russia and Germany. Our licensing business has also accelerated with the successful launch of Legend of Immortals in Taiwan as well as Hades Realm II in Thailand along with plans to push further abroad into Germany and Russia later this year. By approaching each one of our games in a similar, innovative manner, we hope to ensure that they become popular hits that contribute to our portfolio and overseas revenue growth."
"The year 2011 was one of the busiest and most exciting years in Shanda Games' history, and we are pleased with where we are today as we look at our prospects for 2012 and beyond. As the online gaming market keeps growing with access in more regions and devices, we will continue to leverage our strong game portfolio, operating expertise and talent to create a richer gaming experience for players around the world."
Unaudited Non-GAAP Quarterly Results | ||||||
(in millions, except for per share data) | ||||||
Q4 2010 | Q3 2011 | Q4 2011 | ||||
(RMB) | (RMB) | (RMB) | (US$) | QoQ | ||
Net Revenues | 1,152.5 | 1,352.8 | 1,356.0 | 215.2 | 0.2% | |
Gross Profit | 730.4 | 859.3 | 863.9 | 137.1 | 0.5% | |
Operating Income | 390.3 | 433.1 | 443.0 | 70.3 | 2.3% | |
Government Financial Incentives | 124.8 | 43.6 | 97.7 | 15.5 | 124.1% | |
Net Income Attributable to Ordinary Shareholders | 422.2 | 403.5 | 335.5 | 53.3 | -16.9% | |
Earnings Per Diluted ADS | 1.50 | 1.42 | 1.20 | 0.19 | ||
Non-GAAP results exclude share-based compensation, amortization of acquisition-related intangible assets and the related income tax effects. | ||||||
Unaudited GAAP Quarterly Results | ||||||
(in millions, except for per share data) | ||||||
Q4 2010 | Q3 2011 | Q4 2011 | ||||
(RMB) | (RMB) | (RMB) | (US$) | QoQ | ||
Net Revenues | 1,152.5 | 1,352.8 | 1,356.0 | 215.2 | 0.2% | |
Gross Profit | 701.0 | 829.8 | 834.3 | 132.4 | 0.5% | |
Operating Income | 324.9 | 361.4 | 400.9 | 63.6 | 10.9% | |
Government Financial Incentives | 124.8 | 43.6 | 97.7 | 15.5 | 124.1% | |
Net Income Attributable to Ordinary Shareholders | 366.6 | 342.6 | 304.3 | 48.3 | -11.2% | |
Earnings Per Diluted ADS | 1.30 | 1.20 | 1.08 | 0.17 | ||
Quarterly Operating Statistics | |||||
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | ||
MAU (in millions) | 20.3 | 24.0 | 21.0 | 20.4 | |
MPU (in millions) | 4.6 | 4.4 | 4.6 | 4.5 | |
ARPU (RMB) | 85.2 | 94.6 | 91.9 | 92.8 | |
Unaudited Non-GAAP Annual Results | |||||
(in millions, except for per share data) | |||||
2010 | 2011 | ||||
(RMB) | (RMB) | (US$) | YoY | ||
Net Revenues | 4,504.7 | 5,281.9 | 838.3 | 17.3% | |
Gross Profit | 2,752.9 | 3,344.0 | 530.8 | 21.5% | |
Operating Income | 1,552.2 | 1,728.9 | 274.3 | 11.4% | |
Government Financial Incentives | 232.3 | 185.0 | 29.4 | -20.4% | |
Net Income Attributable to Ordinary Shareholders | 1,479.7 | 1,476.8 | 234.3 | -0.2% | |
Earnings Per Diluted ADS | 5.18 | 5.20 | 0.82 | ||
Non-GAAP results exclude share-based compensation, amortization of acquisition-related intangible assets and the related income tax effects. | |||||
Unaudited GAAP Annual Results | |||||
(in millions, except for per share data) | |||||
2010 | 2011 | ||||
(RMB) | (RMB) | (US$) | YoY | ||
Net Revenues | 4,504.7 | 5,281.9 | 838.3 | 17.3% | |
Gross Profit | 2,667.5 | 3,225.9 | 512.0 | 20.9% | |
Operating Income | 1,332.9 | 1,474.0 | 233.9 | 10.6% | |
Government Financial Incentives | 232.3 | 185.0 | 29.4 | -20.4% | |
Net Income Attributable to Ordinary Shareholders | 1,288.8 | 1,264.9 | 200.7 | -1.9% | |
Earnings Per Diluted ADS | 4.52 | 4.46 | 0.70 | ||
Fourth Quarter 2011 Unaudited Financial Results (GAAP)
Net Revenues. In the fourth quarter of 2011, Shanda Games reported net revenues of RMB1,356.0 million (US$215.2 million), representing an increase of 17.7% from RMB1,152.5 million in the fourth quarter of 2010 and an increase of 0.2% from RMB1,352.8 million in the third quarter of 2011. Online game revenues generated in China and other revenues accounted for 93.1% and 6.9% of total net revenues, respectively.
Net revenues from online games generated in China were RMB1,262.0 million (US$200.3 million), representing an increase of 14.4% from RMB1,102.8 million in the fourth quarter of 2010 and a decrease of 1.5% from RMB 1,280.7 million in the third quarter of 2011. The quarter-over-quarter decrease was primarily due to weaker seasonality with fewer holidays and a decline in revenues from Mir II which reached peak performance during the previous quarter due to the launch of major expansion packs for the game's 11th anniversary. This was partially offset by an increase in revenues from Dragon Nest and initial revenue contribution from Mir III which was launched on October 30, 2011.
Average MAUs for games operated in China were 20.4 million, compared with 21.0 million in the third quarter of 2011. Average MPUs for games operated in China were 4.5 million, compared with 4.6 million in the third quarter of 2011. The quarter-over-quarter decrease in MAUs and MPUs was mainly due to weaker seasonality in the fourth quarter, since more gamers tend to be active during the third quarter as a result of the Chinajoy promotions and summer holidays.
Monthly ARPU for games operated in China was RMB92.8 in the fourth quarter of 2011, compared with RMB91.9 in the third quarter of 2011.
Other revenues, which primarily represent net overseas revenues generated from game licensing, game operations and advertising, were RMB94.0 million (US$14.9 million) in the fourth quarter of 2011, representing an increase of 89.1% from RMB49.7 million in the fourth quarter of 2010 and an increase of 30.4% from RMB72.1 million in the third quarter of 2011. The quarter-over-quarter increase was mainly due to the first full quarter revenue contribution from overseas operating or licensing of Dragon Nest in Singapore and the United States and Hades Realm II in Taiwan.
Cost of Revenues. Cost of revenues for the fourth quarter of 2011 was RMB521.7 million (US$82.8 million), representing an increase of 15.5% from RMB451.5 million in the fourth quarter of 2010 and a decrease of 0.2% from RMB523.0 million in the third quarter of 2011.
Gross Profit. Gross profit for the fourth quarter of 2011 was RMB 834.3 million (US$132.4 million), representing an increase of 19.0% from RMB701.0 million in the fourth quarter of 2010 and 0.5% from RMB829.8 million in the third quarter of 2011. Gross margin was 61.5% in the fourth quarter of 2011, up from 60.8% in the fourth quarter of 2010 and 61.3% in the third quarter of 2011.
Operating Expenses. Total operating expenses for the fourth quarter of 2011 were RMB433.4 million (US$68.8 million), representing an increase of 15.2% from RMB376.1 million in the fourth quarter of 2010 and a decrease of 7.5% from RMB468.4 million in the third quarter of 2011. Operating expenses represented 32.0% of net revenues, down from 32.6% in the fourth quarter of 2010 and 34.6% in the third quarter of 2011.
Product development expenses increased 38.7% year-over-year and 2.5% quarter-over-quarter to RMB190.3 million (US$30.2 million) in the fourth quarter of 2011. Product development expenses represented 14.0% of net revenues, compared with 11.9% in the fourth quarter of 2010 and 13.7% in the third quarter of 2011.
Sales and marketing expenses increased 2.7% year-over-year and decreased 12.4% quarter-over-quarter to RMB142.3 million (US$22.6 million) in the fourth quarter of 2011. The sequential decrease was primarily due to a seasonal decline in marketing and promotional expenses incurred during the fourth quarter. Sales and marketing expenses represented 10.5% of net revenues, down from 12.0% in the fourth quarter of 2010 and 12.0% in the third quarter of 2011.
General and administrative expenses increased 0.4% year-over-year and decreased 16.1% quarter-over-quarter to RMB100.8 million (US$16.0 million) in the fourth quarter of 2011. The sequential decrease in general and administrative expenses was primarily due to a decline in share-based compensation expenses associated with the resignation of several senior executives who subsequently joined various other subsidiaries under Shanda Interactive Entertainment Limited, the parent company of Shanda Games, in the fourth quarter of 2011. General and administrative expenses accounted for 7.4% of net revenues, compared with 8.7% in the fourth quarter of 2010 and 8.9% in the third quarter of 2011.
Share-based compensation expenses were RMB0.8 million (US$0.1 million) in the fourth quarter of 2011, compared with RMB25.6 million in the fourth quarter of 2010 and RMB30.4 million in the third quarter of 2011.
Operating Income. Operating income for the fourth quarter of 2011 was RMB400.9 million (US$63.6 million), representing an increase of 23.4% from RMB324.9 million in the fourth quarter of 2010 and 10.9% from RMB361.4 million in the third quarter of 2011. Operating margin was 29.6% in the fourth quarter of 2011, up from 28.2% in the fourth quarter of 2010 and 26.7% in the third quarter of 2011.
Government Financial Incentives. Government financial incentives totaled RMB97.7 million (US$15.5 million) in the fourth quarter of 2011, compared with RMB124.8 million in the fourth quarter of 2010 and RMB43.6 million in the third quarter of 2011. The Company's receipt of government financial incentives is subject to time lags and inconsistent government administrative practices relating to the timing of payments.
Income Tax Expenses. Income tax expenses for the fourth quarter of 2011 were RMB226.3 million (US$35.9 million), compared with RMB87.2 million in the fourth quarter of 2010 and RMB94.2 million in the third quarter of 2011. The sequential increase in income tax expenses was primarily due to a RMB134.0 million (US$21.3 million) accrued withholding tax associated with dividends distribution from the Company's subsidiaries to their holding companies overseas. Excluding the accrued withholding tax impact, effective tax rate was 16.9% in the fourth quarter of 2011, compared with 18.9% in the fourth quarter of 2010 and 21.2% in the third quarter of 2011.
Net Income Attributable to Ordinary Shareholders. Net income for the fourth quarter of 2011 was RMB304.3 million (US$48.3 million), representing a decrease of 17.0% from RMB366.6 million in the fourth quarter of 2010 and 11.2% from RMB342.6 million in the third quarter of 2011. Earnings per diluted ADS in the fourth quarter of 2011 were RMB1.08 (US$0.17), compared with RMB1.30 in the fourth quarter of 2010 and RMB1.20 in the third quarter of 2011.
Net Cash. In the fourth quarter of 2011 the Company generated RMB412.7 million (US$65.5 million) in cash flows from operating activities. The Company's cash and cash equivalent, short-term investments, restricted cash and time deposits, net of loans and dividend payable, was RMB2,160.1 million (US$342.8 million) as of December 31, 2011, compared with RMB3,710.4 million as of September 30, 2011. The sequential decrease was primarily due to a dividend payable of US$289.4 million associated with a special cash dividend announced by the Company in November 2011, partially offset by the cash flow generated from operations during the fourth quarter of 2011.
Full Year 2011 Unaudited Financial Results
Net Revenues. Net revenues for the full year 2011 totaled RMB5,281.9 million (US$838.3 million), representing an increase of 17.3% from RMB4,504.7 million in 2010.
Gross Profit. Gross profit for the full year 2011 increased 20.9% year-over-year to RMB3,225.9 million (US$512.0 million). Gross margin was 61.1%, compared with 59.2% in 2010.
Operating Income. Operating income for the full year 2011 increased 10.6% year-over-year to RMB1,474.0 million (US$233.9 million). Operating margin was 27.9%, compared with 29.6% in 2010.
Non-GAAP Operating Income. Non-GAAP operating income for the full year 2011 increased 11.4% year-over-year to RMB1,728.9 million (US$274.3 million). Non-GAAP operating margin was 32.7%, compared with 34.5% in 2010.
Net Income Attributable to Ordinary Shareholders. Net income for the full year 2011 was RMB1,264.9 million (US$200.7 million), representing a 1.9% decrease from RMB1,288.8 million in 2010. Earnings per diluted ADS were RMB4.46 (US$ 0.70), compared with RMB4.52 in 2010.
Non-GAAP Net Income Attributable to Ordinary Shareholders. Non-GAAP net income for the full year 2011 was RMB1,476.8 million (US$234.3 million), representing a 0.2% decrease from RMB1,479.7 million in 2010. Non-GAAP earnings per diluted ADS were RMB5.20 (US$ 0.82), compared with RMB5.18 in 2010.
Net Cash. In the full year 2011 the Company generated RMB1,396.7 million (US$221.7 million) in cash flows from operating activities. The Company's cash and cash equivalent, short-term investments, restricted cash and time deposits, net of loans and dividend payable, was RMB2,160.1 million (US$342.8 million) as of December 31, 2011, compared with RMB2,979.4 million as of December 31, 2010. The decrease was primarily due to a dividend payable of US$289.4 million associated with a special cash dividend announced by the Company in November 2011, partially offset by the cash flow generated from operations during 2011.
Recent Business Highlights
On November 8, 2011, True Digital Plus began open-beta testing for Shanda Games' 3D fantasy MMORPG Hades Realm II in Thailand.
On January 9, 2012, Shanda Games received a total of twelve awards at the 2011 China Game Industry Annual Conference in recognition of the Company's outstanding contributions in the online game industry. These awards include:
On January 20, 2012, Shanda Games announced a partnership with Snail Game, a leading online game developer and operator in China, regarding Age of Wushu, a 3D martial-arts adventure MMORPG developed by Snail Game. Pursuant to the partnership, Shanda Games will operate Age of Wushu with Snail Game, when Snail Game will be able to leverage Shanda Games expertise and resources for the game operation in China. Age of Wushu is one of the most anticipated 3D MMORPGs in China in 2012 and has received positive feedback from players during its closed-beta testing in the fourth quarter of 2011.
On February 9, 2012, Shanda Games announced that it has entered into an agreement with Trion Worlds, a leading game publisher and developer, for the exclusive license to operate its highly-anticipated 3D MMORPG "RIFT" in mainland China. RIFT is a fantasy-themed game that offers highly polished game plays and deeply immersive experience to users. It has been well received by gamers since its release in the US and has won numerous recognitions from top game websites and organizations since publication, including "The Best MMO 2011 Award" by IGN.com, "The Best New MMO 2011 Award" by MMOPRG.com and "The Best New Online Game 2011 Award" by the U.S.A. Game Developers Conference (GDC).
On February 9, 2012, GameFlier began open-beta testing for Shanda Games' 2.5D MMORPG Legend of Immortals in Taiwan.
On February 15, 2012, Frogster began open-beta testing for Shanda Games' 3D fantasy MMORPG Hades Realm II in Germany.
Special Cash Dividend
On November 28, 2011, the Company's Board of Directors declared a special one-time cash dividend of US$0.51 per Class A or Class B ordinary share, or US$1.02 per ADS. The special dividend was paid on January 20, 2012 to all shareholders. Pursuant to NASDAQ rules, the ex-dividend date was January 23, 2012, the first business day following the dividend payment date.
Conference Call and Webcast Notice
Shanda Games will host a conference call at 9:00 a.m. on February 22, 2012 Beijing/Hong Kong time (8:00 p.m. on February 21, 2012 Eastern Time), to discuss its fourth quarter results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: | 1866-519-4004 | |
Mainland China Toll Free (for mobile users): | 400-620-8038 | |
Mainland China Toll Free (for fixed line users): | 800-819-0121 | |
Hong Kong Toll Free: | 800-930-346 | |
U.K. Toll Free: | 0808-234-6646 | |
International Toll: | +65-6723-9381 | |
Passcode: | 51434199 | |
A replay of the conference call will be available from 12:00 pm (Beijing/Hong Kong time) on February 22, 2012 for 7 days.
U.S. Toll Free: | 1866-214-5335 | |
International Toll: | +61-2-8235-5000 | |
Passcode: | 51434199 | |
A live and archived webcast of the conference call will also be available on Shanda Games' investor relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into U.S. dollars is based on RMB 6.3009 to US$1.00 as published by the People's Bank of China on December 30, 2011, the last trading day of 2011. The Company makes no representation that the Renminbi or US dollar amounts referred to in this release could have been, or could be, converted into US dollars at such rate or at all. The percentages stated are calculated based on the RMB amounts.
Note to the Financial Information
The unaudited financial information disclosed above is preliminary and subject to adjustments. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2011 is still in progress. Adjustments to these preliminary financial statements may be identified when audit work is completed, which could result in significant differences from this preliminary unaudited financial information.
Non-GAAP Financial Measures
In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial numbers including non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and non-GAAP per share data.
The non-GAAP financial measures disclosed by the Company exclude share-based compensation, amortization of acquisition-related intangible assets and the related income tax effects. These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Shanda Games believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Shanda Games' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures.
Shanda Games believes that the presentation of non-GAAP financial measures when shown in conjunction with the corresponding GAAP measures provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations. Shanda Games' management also believes that the non-GAAP financial measures are appropriate for period to period comparisons in the Company's budget, planning and evaluation processes. From time to time in the future, there may be other items that Shanda Games may exclude in reviewing its financial results.
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. Statements in this announcement that are not historical facts, including but not limited to statements regarding the long-term growth of the Company; the future benefits brought by the Company's "All-Star, All-Platform and All-Region" strategy; the introduction and potential success of new game titles; the expansion into global market; the expansion into micro-clients games and mobile games and the future benefits brought by these games; and the growth potential of online game market, represent only the Company's current expectations, assumptions, estimates and projections and are forward-looking statements. These forward-looking statements involve various risks and uncertainties. Important risks and uncertainties that could cause the Company's actual results to be materially different from expectations include but are not limited to the risk that there are delays in the launch of, or the Company is unable to launch, the games the Company intends to release; such games and any related expansion packs are not well received by users in China; the games fail to meet the expectations of end users; the games that the Company operates overseas or has licensed to partners globally are not well received by end users in these countries; the Company fails to execute its "All-Star, All-Platform and All-Region" strategy; the Company fails to deliver long-term growth and the online game market fails to deliver long-term growth, as well as the risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on form 20-F. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Shanda Games
Shanda Games Limited (NASDAQ: GAME) is a leading online game developer, operator and publisher in China. Shanda Games offers a diversified game portfolio, which includes some of the most popular massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, targeting a large and diverse community of users. Shanda Games manages and operates online games that are developed in-house, co-developed with world-leading game developers, acquired through investments or licensed from third parties. For more information about Shanda Games, please visit http://www.shandagames.com.
Contact
Shanda Games Limited:
Ellen Chiu, Investor Relations Director
Maggie Zhou, Investor Relations Manager
Phone: +86-21-5050-4740 (Shanghai)
Email: IR@ShandaGames.com
Christensen:
Christian Arnell
Phone: +86-10-5826-4939 (China)
Email: carnell@ChristensenIR.com
Linda Bergkamp
Phone: +1-480-614-3004 (U.S.A.)
Email: lbergkamp@ChristensenIR.com
SHANDA GAMES LIMITED | |||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(in millions, except for share and per share data) | |||||||||
As of | As of | As of | |||||||
2010 | 2011 | 2011 | |||||||
RMB | RMB | RMB | US$ | ||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 1,571.8 | 1,388.1 | 1,835.5 | 291.3 | |||||
Restricted cash | 5.4 | 337.5 | 1,284.4 | 203.8 | |||||
Short-term investments | 597.6 | 2,025.3 | 945.0 | 150.0 | |||||
Marketable securities | 5.4 | 4.0 | 3.8 | 0.6 | |||||
Accounts receivable, net of allowance for doubtful accounts | 48.4 | 51.8 | 72.8 | 11.6 | |||||
Accounts receivable due from related parties | 389.9 | 338.7 | 406.0 | 64.4 | |||||
Deferred licensing fees and related costs | 44.5 | 27.8 | 19.8 | 3.1 | |||||
Prepayments and other current assets | 132.7 | 180.4 | 182.0 | 28.9 | |||||
Other receivables due from related parties 1 | 531.9 | 939.6 | 931.3 | 147.8 | |||||
Deferred tax assets | 66.9 | 73.7 | 74.7 | 11.9 | |||||
Total current assets | 3,394.5 | 5,366.9 | 5,755.3 | 913.4 | |||||
Time deposit with maturity over one year | 1,215.2 | - | - | - | |||||
Investment in affiliated companies | 31.5 | 30.6 | 37.9 | 6.0 | |||||
Property and equipment | 195.4 | 244.4 | 230.5 | 36.6 | |||||
Intangible assets | 1,269.7 | 1,045.5 | 994.7 | 157.9 | |||||
Goodwill | 486.9 | 492.1 | 492.1 | 78.1 | |||||
Long-term deposits | 62.4 | 46.8 | 95.1 | 15.1 | |||||
Other long term assets | 104.4 | 339.2 | 326.6 | 51.8 | |||||
Non-current deferred tax assets | 19.6 | 21.1 | 26.4 | 4.2 | |||||
Total assets | 6,779.6 | 7,586.6 | 7,958.6 | 1,263.1 | |||||
LIABILITIES | |||||||||
Current liabilities: | |||||||||
Short-term borrowings | - | 843.7 | 858.8 | 136.3 | |||||
Accounts payable | 64.6 | 44.5 | 38.4 | 6.1 | |||||
Accounts payable due to related parties | 65.3 | 85.8 | 77.3 | 12.3 | |||||
Licensing fees payable | 246.0 | 156.8 | 188.2 | 29.9 | |||||
Taxes payable | 146.4 | 173.2 | 190.6 | 30.2 | |||||
Deferred revenue | 233.7 | 171.0 | 173.4 | 27.5 | |||||
Other payables and accruals | 366.1 | 361.0 | 416.0 | 66.0 | |||||
Other payables due to related parties 2 | 950.7 | 126.9 | 125.9 | 20.0 | |||||
Dividend Payable | - | - | 1,823.4 | 289.4 | |||||
Deferred tax liabilities | 69.7 | 27.0 | 72.9 | 11.6 | |||||
Total current liabilities | 2,142.5 | 1,989.9 | 3,964.9 | 629.3 | |||||
Long-term liabilities | 30.9 | 59.1 | 68.9 | 10.9 | |||||
Non-current deferred tax liabilities | 297.2 | 271.6 | 260.2 | 41.2 | |||||
Non-current deferred revenue | 50.2 | 42.6 | 47.6 | 7.6 | |||||
Total liabilities | 2,520.8 | 2,363.2 | 4,341.6 | 689.0 | |||||
Redeemable non-controlling interests | - | 14.0 | 14.0 | 2.2 | |||||
SHAREHOLDERS' EQUITY | |||||||||
Ordinary shares outstanding | 567,389,254 | 566,655,822 | 560,309,556 | 560,309,556 | |||||
ADS equivalent outstanding | 283,694,627 | 283,327,911 | 280,154,778 | 280,154,778 | |||||
Ordinary shares | 41.4 | 41.3 | 40.9 | 6.5 | |||||
Additional paid-in capital | 1,419.7 | 1,552.7 | 1,561.3 | 247.8 | |||||
Statutory reserves | 141.6 | 146.8 | 147.1 | 23.3 | |||||
Accumulated other comprehensive loss | (40.8) | (66.7) | (68.5) | (10.9) | |||||
Retained earnings | 2,458.1 | 3,289.6 | 1,665.0 | 264.3 | |||||
Total Shanda Games Limited shareholders' equity | 4,020.0 | 4,963.7 | 3,345.8 | 531.0 | |||||
Non-controlling interests | 238.8 | 245.7 | 257.2 | 40.9 | |||||
Total shareholders' equity | 4,258.8 | 5,209.4 | 3,603.0 | 571.9 | |||||
Total liabilities and shareholders' equity | 6,779.6 | 7,586.6 | 7,958.6 | 1,263.1 | |||||
Note:
SHANDA GAMES LIMITED | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in millions, except for share and per share data) | ||||||||
For the three months period ended, | ||||||||
December 31, | September 30, | December 31, | ||||||
RMB | RMB | RMB | US$ | |||||
Net revenues: | ||||||||
Online game revenues generated in China | 1,102.8 | 1,280.7 | 1,262.0 | 200.3 | ||||
Other revenues | 49.7 | 72.1 | 94.0 | 14.9 | ||||
Total net revenues | 1,152.5 | 1,352.8 | 1,356.0 | 215.2 | ||||
Cost of revenues | (451.5) | (523.0) | (521.7) | (82.8) | ||||
Gross profit | 701.0 | 829.8 | 834.3 | 132.4 | ||||
Operating expenses: | ||||||||
Product development | (137.2) | (185.7) | (190.3) | (30.2) | ||||
Sales and marketing | (138.5) | (162.5) | (142.3) | (22.6) | ||||
General and administrative | (100.4) | (120.2) | (100.8) | (16.0) | ||||
Total operating expenses | (376.1) | (468.4) | (433.4) | (68.8) | ||||
Income from operations | 324.9 | 361.4 | 400.9 | 63.6 | ||||
Interest income | 17.4 | 41.5 | 40.4 | 6.4 | ||||
Government financial incentives | 124.8 | 43.6 | 97.7 | 15.5 | ||||
Other (expense) income, net | (6.5) | (2.2) | 7.8 | 1.3 | ||||
Income before income tax expenses, equity in affiliated companies, and minority interests | 460.6 | 444.3 | 546.8 | 86.8 | ||||
Income tax expenses | (87.2) | (94.2) | (226.3) | (35.9) | ||||
Equity in loss of affiliated companies | (3.5) | (2.9) | (5.5) | (0.9) | ||||
Net income | 369.9 | 347.2 | 315.0 | 50.0 | ||||
Less: Net income attributable to non-controlling interests | (3.3) | (4.6) | (10.7) | (1.7) | ||||
Net income attributable to ordinary shareholders | 366.6 | 342.6 | 304.3 | 48.3 | ||||
Earnings per ordinary share | ||||||||
Basic | 0.65 | 0.60 | 0.54 | 0.09 | ||||
Diluted | 0.65 | 0.60 | 0.54 | 0.09 | ||||
Earnings per ADS | ||||||||
Basic | 1.30 | 1.20 | 1.08 | 0.17 | ||||
Diluted | 1.30 | 1.20 | 1.08 | 0.17 | ||||
Weighted average ordinary shares outstanding | ||||||||
Basic | 566,810,437 | 569,927,358 | 560,914,251 | 560,914,251 | ||||
Diluted | 566,810,437 | 570,040,780 | 560,958,127 | 560,958,127 | ||||
Weighted average ADS outstanding | ||||||||
Basic | 283,405,219 | 284,963,679 | 280,457,126 | 280,457,126 | ||||
Diluted | 283,405,219 | 285,020,390 | 280,479,064 | 280,479,064 | ||||
Reconciliation from Non-GAAP measures to GAAP measures | ||||||||
Non-GAAP Gross profit | 730.4 | 859.3 | 863.9 | 137.1 | ||||
Intangible assets amortization arising from acquisition | (29.2) | (29.3) | (29.3) | (4.7) | ||||
Share-based compensation cost | (0.2) | (0.2) | (0.3) | - | ||||
GAAP Gross profit | 701.0 | 829.8 | 834.3 | 132.4 | ||||
Non-GAAP Operating income | 390.3 | 433.1 | 443.0 | 70.3 | ||||
Intangible assets amortization arising from acquisition | (39.8) | (41.3) | (41.3) | (6.6) | ||||
Share-based compensation cost | (25.6) | (30.4) | (0.8) | (0.1) | ||||
GAAP Operating income | 324.9 | 361.4 | 400.9 | 63.6 | ||||
Non-GAAP net income attributable to ordinary shareholders | 422.2 | 403.5 | 335.5 | 53.3 | ||||
Intangible assets amortization arising from acquisition | (39.8) | (41.3) | (41.3) | (6.6) | ||||
Share-based compensation cost | (25.6) | (30.4) | (0.8) | (0.1) | ||||
Income tax effect | 9.8 | 10.1 | 10.1 | 1.6 | ||||
Intangible assets amortization of non-controlling interests | - | 0.7 | 0.8 | 0.1 | ||||
GAAP net income attribute to ordinary shareholders | 366.6 | 342.6 | 304.3 | 48.3 | ||||
Non-GAAP diluted earnings per share | 0.75 | 0.71 | 0.60 | 0.10 | ||||
Non-GAAP expense per share | (0.10) | (0.11) | (0.06) | (0.01) | ||||
GAAP diluted earnings per share | 0.65 | 0.60 | 0.54 | 0.09 | ||||
Non-GAAP diluted earnings per ADS | 1.50 | 1.42 | 1.20 | 0.19 | ||||
Non-GAAP expense per ADS | (0.20) | (0.22) | (0.12) | (0.02) | ||||
GAAP diluted earnings per ADS | 1.30 | 1.20 | 1.08 | 0.17 | ||||
Supplemental disclosure of intangible assets amortization arising from acquisition included in:
Cost of revenues | (29.2) | (29.3) | (29.3) | (4.7) | ||||
Product development | (3.2) | (3.2) | (3.2) | (0.5) | ||||
Sales and marketing | (3.1) | (3.8) | (3.8) | (0.6) | ||||
General and administrative | (4.3) | (5.0) | (5.0) | (0.8) | ||||
Total | (39.8) | (41.3) | (41.3) | (6.6) | ||||
Supplemental disclosure of Share-based compensation cost included in:
Cost of revenues | (0.2) | (0.2) | (0.3) | - | ||||
Product development | (5.2) | (6.1) | (5.7) | (0.9) | ||||
Sales and marketing | (0.1) | (0.1) | - | - | ||||
General and administrative | (20.1) | (24.0) | 5.2 | 0.8 | ||||
Total | (25.6) | (30.4) | (0.8) | (0.1) | ||||
SHANDA GAMES LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(in millions, except for share and per share data) | ||||||
For the twelve months period ended, | ||||||
December 31, | December 31, | |||||
RMB | RMB | US$ | ||||
Net revenues: | ||||||
Online game revenues generated in China | 4,318.9 | 4,975.5 | 789.6 | |||
Other revenues | 185.8 | 306.4 | 48.7 | |||
Total net revenues | 4,504.7 | 5,281.9 | 838.3 | |||
Cost of revenues | (1,837.2) | (2,056.0) | (326.3) | |||
Gross profit | 2,667.5 | 3,225.9 | 512.0 | |||
Operating expenses: | ||||||
Product development | (465.8) | (694.3) | (110.2) | |||
Sales and marketing | (501.8) | (610.2) | (96.9) | |||
General and administrative | (367.0) | (447.4) | (71.0) | |||
Total operating expenses | (1,334.6) | (1,751.9) | (278.1) | |||
Income from operations | 1,332.9 | 1,474.0 | 233.9 | |||
Interest income | 61.7 | 135.4 | 21.5 | |||
Government financial incentives | 232.3 | 185.0 | 29.4 | |||
Other expense, net | (16.5) | (13.1) | (2.1) | |||
Income before income tax expenses, equity in affiliated companies, and minority interests | 1,610.4 | 1,781.3 | 282.7 | |||
Income tax expenses | (300.3) | (485.3) | (77.0) | |||
Equity in loss of affiliated companies | (5.4) | (10.0) | (1.6) | |||
Net income | 1,304.7 | 1,286.0 | 204.1 | |||
Less: Net income attributable to non-controlling interests | (15.9) | (21.1) | (3.4) | |||
Net income attributable to ordinary shareholders | 1,288.8 | 1,264.9 | 200.7 | |||
Earnings per ordinary share | ||||||
Basic | 2.26 | 2.23 | 0.35 | |||
Diluted | 2.26 | 2.23 | 0.35 | |||
Earnings per ADS | ||||||
Basic | 4.52 | 4.46 | 0.70 | |||
Diluted | 4.52 | 4.46 | 0.70 | |||
Weighted average ordinary shares outstanding | ||||||
Basic | 570,645,594 | 567,138,809 | 567,138,809 | |||
Diluted | 570,795,057 | 567,178,693 | 567,178,693 | |||
Weighted average ADS outstanding | ||||||
Basic | 285,322,797 | 283,569,405 | 283,569,405 | |||
Diluted | 285,397,529 | 283,589,347 | 283,589,347 | |||
Reconciliation from Non-GAAP measures to GAAP measures | ||||||
Non-GAAP Gross profit | 2,752.9 | 3,344.0 | 530.8 | |||
Intangible assets amortization arising from acquisition | (84.6) | (117.1) | (18.6) | |||
Share-based compensation cost | (0.8) | (1.0) | (0.2) | |||
GAAP Gross profit | 2,667.5 | 3,225.9 | 512.0 | |||
Non-GAAP Operating income | 1,552.2 | 1,728.9 | 274.3 | |||
Intangible assets amortization arising from acquisition | (113.4) | (163.9) | (26.0) | |||
Share-based compensation cost | (105.9) | (91.0) | (14.4) | |||
GAAP Operating income | 1,332.9 | 1,474.0 | 233.9 | |||
Non-GAAP net income attributable to ordinary shareholders | 1,479.7 | 1,476.8 | 234.3 | |||
Intangible assets amortization arising from acquisition | (113.4) | (163.9) | (26.0) | |||
Share-based compensation cost | (105.9) | (91.0) | (14.4) | |||
Income tax effect | 28.4 | 39.8 | 6.3 | |||
Intangible assets amortization of non-controlling interests | - | 3.2 | 0.5 | |||
GAAP net income attribute to ordinary shareholders | 1,288.8 | 1,264.9 | 200.7 | |||
Non-GAAP diluted earnings per share | 2.59 | 2.60 | 0.41 | |||
Non-GAAP expense per share | (0.33) | (0.37) | (0.06) | |||
GAAP diluted earnings per share | 2.26 | 2.23 | 0.35 | |||
Non-GAAP diluted earnings per ADS | 5.18 | 5.20 | 0.82 | |||
Non-GAAP expense per ADS | (0.66) | (0.74) | (0.12) | |||
GAAP diluted earnings per ADS | 4.52 | 4.46 | 0.70 | |||
Supplemental disclosure of intangible assets amortization arising from acquisition included in:
Cost of revenues | (84.6) | (117.1) | (18.6) | |||
Product development | (6.9) | (12.7) | (2.0) | |||
Sales and marketing | (8.7) | (14.3) | (2.3) | |||
General and administrative | (13.2) | (19.8) | (3.1) | |||
Total | (113.4) | (163.9) | (26.0) | |||
Supplemental disclosure of Share-based compensation cost included in:
Cost of revenues | (0.8) | (1.0) | (0.2) | |||
Product development | (29.8) | (24.1) | (3.8) | |||
Sales and marketing | (0.3) | (0.2) | - | |||
General and administrative | (75.0) | (65.7) | (10.4) | |||
Total | (105.9) | (91.0) | (14.4) | |||
SHANDA GAMES LIMITED | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions, except for share and per share data) | |||||||
For the twelve months period ended, | |||||||
December 31, | December 31, | ||||||
RMB | RMB | US$ | |||||
Cash flows from operating activities: | |||||||
Net income | 1,304.7 | 1,286.0 | 204.1 | ||||
Adjustments for: | |||||||
Share-based compensation expenses | 105.9 | 91.0 | 14.4 | ||||
Depreciation and amortization | 303.6 | 352.8 | 56.0 | ||||
Others | 32.2 | 26.5 | 4.2 | ||||
Changes in assets and liabilities, net of acquisitions: | |||||||
Prepayments and licensing fee and royalty | (20.3) | (293.9) | (46.6) | ||||
Others | 19.2 | (65.7) | (10.4) | ||||
Net cash provided by operating activities | 1,745.3 | 1,396.7 | 221.7 | ||||
Cash flows from investing activities: | |||||||
Purchase of property, equipment and intangible assets | (86.0) | (161.5) | (25.6) | ||||
Acquisition (net of cash acquired) and equity investment | (1,011.5) | (9.9) | (1.6) | ||||
Others | (852.7) | (848.8) | (134.7) | ||||
Net cash used in investing activities | (1,950.2) | (1,020.2) | (161.9) | ||||
Cash flows from financing activities: | |||||||
Repurchase of common stock | (255.9) | (186.3) | (29.6) | ||||
Others | 235.3 | 99.6 | 15.8 | ||||
Net cash used in financing activities | (20.6) | (86.7) | (13.8) | ||||
Effect of exchange rate changes on cash | (1.9) | (26.1) | (4.2) | ||||
Net increase in cash and cash equivalents | (227.4) | 263.7 | 41.8 | ||||
Cash and cash equivalents, beginning of period | 1,799.2 | 1,571.8 | 249.5 | ||||
Cash and cash equivalents, end of period | 1,571.8 | 1,835.5 | 291.3 | ||||
