HONG KONG, Nov. 26, 2012 /PRNewswire/ -- 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 third quarter ended September 30,
2012.
Non-GAAP Financial Highlights
- Net revenues were RMB1,080.5
million (US$170.4 million),
down 20.1% YoY and 4.4% QoQ.
- Gross profit was RMB705.4 million
(US$111.2 million), down 17.9% YoY
and 2.9% QoQ. Gross margin was 65.3%, up from 63.5% in Q3 2011 and
64.2% in Q2 2012.
- Operating income was RMB324.2
million (US$51.1 million),
down 25.1% YoY and 17.0% QoQ. Operating margin was 30.0%, compared
with 32.0% in Q3 2011 and 34.6% in Q2 2012.
- Net income attributable to ordinary shareholders was
RMB289.9 million (US$45.7 million), down 28.2% YoY and 13.9%
QoQ.
- Earnings per diluted American Depositary Share ("ADS") were
RMB1.04 (US$0.17), compared with RMB1.42 in Q3 2011 and RMB1.20 in Q2 2012.
GAAP Financial Highlights
- Net revenues were RMB1,080.5
million (US$170.4 million),
down 20.1% YoY and 4.4% QoQ.
- Online game revenues generated in China were RMB1,015.1
million (US$160.1 million),
down 20.7% YoY and 2.4% QoQ.
- Other revenues were RMB65.4
million (US$10.3 million),
down 9.3% YoY and 27.4% QoQ.
- Gross profit was RMB684.5 million
(US$107.9 million), down 17.5% YoY
and 2.9% QoQ. Gross margin was 63.4%, up from 61.3% in Q3 2011 and
62.4% in Q2 2012.
- Operating income was RMB280.6
million (US$44.3 million),
down 22.4% YoY and 20.8% QoQ. Operating margin was 26.0%, compared
with 26.7% in Q3 2011 and 31.4% in Q2 2012.
- Net income attributable to ordinary shareholders was
RMB253.9 million (US$40.0 million), down 25.9% YoY and 17.7%
QoQ.
- Earnings per diluted ADS were RMB0.92 (US$0.15),
compared with RMB1.20 in Q3 2011 and
RMB1.10 in Q2 2012.
Operating Highlights
- Average Monthly Active Users (average MAUs) for all games
operated in China increased 6.2%
QoQ to 18.4 million, mainly due to the release of content updates
for certain major games during Q3 2012.
- Average Monthly Paying Users (average MPUs) for all games
operated in China decreased 7.9%
QoQ to 3.5 million. The sequential decrease was mainly due to
the content updates released for major games which introduced a
number of free functions and game play to users, resulting in a
decline in low-spending paying accounts in Q3 2012.
- Monthly Average Revenue per Paying User (ARPU) for all games
operated in China increased 6.0%
QoQ to RMB95.7. The increase
was primarily due to a decline in paying accounts during the
quarter caused by reasons mentioned above.
"During the third quarter, we continued our strategy to
decelerate monetization activities and enhance game play in order
to lengthen the lifecycle of our games and pushed through a number
of other initiatives to help revive our performance going forward,"
said Mr. Xiangdong Zhang, Chief
Executive Officer of Shanda Games.
"As a result, we have already started to see some traction as
monthly active users rose 6.2% compared with the prior quarter.
With an increasing number of users being introduced to our
games, we believe that our growing portfolio of games and promising
pipeline will continue to deliver sustainable growth over the
long-term."
"In addition, we also look forward to the launch of a series of
new games including 'RIFT,' 'World Zero,' 'Final Fantasy XIV 2.0'
and 'Dungeon Striker,' which are progressing in various stages of
development. The strong pipeline demonstrates our commitment
to investing in our game portfolio and the efforts we have gone
through to diversify our revenue streams and improve the health of
our business overall."
"As we develop new content, we continue to expand resources to
bring them overseas. We will launch 'Dragon Nest' in
Europe soon and are leveraging the
success it has had abroad to build our brand name globally,
including the export of new titles such as 'Dungeon Striker.'
Overseas revenue is critical to our long-term growth and the
sustainability of our business."
"In recognition of the constantly changing gaming market, we are
expanding our presence in the mobile game field, where we believe
our brand name, operational expertise, distribution channels and
financial strength will continue to serve as a core competitive
advantage. By providing new ways to access our content, we
hope to take our expertise to mobile and further broaden our
reach."
"Looking ahead, we are confident that our 'All-Star, All-Region
and All-Platform', or 'Triple-A', strategy will position us well
for long-term growth. With our pipeline development, global
expansion and mobile innovation on track, we expect the financial
results to start to reflect the progress we have made in the coming
quarters."
Non-GAAP Quarterly
Results
|
(in millions, except
for per share data)
|
|
Q3 2011
|
Q2 2012
|
Q3 2012
|
|
(RMB)
|
(RMB)
|
(RMB)
|
(US$)
|
QoQ
|
Net Revenues
|
1,352.8
|
1,130.5
|
1,080.5
|
170.4
|
-4.4%
|
Gross Profit
|
859.3
|
726.2
|
705.4
|
111.2
|
-2.9%
|
Operating
Income
|
433.1
|
390.8
|
324.2
|
51.1
|
-17.0%
|
Government Financial
Incentives
|
43.6
|
16.9
|
69.5
|
11.0
|
311.2%
|
Net Income Attributable
to Ordinary Shareholders
|
403.5
|
336.6
|
289.9
|
45.7
|
-13.9%
|
Earnings Per Diluted
ADS
|
1.42
|
1.20
|
1.04
|
0.17
|
|
Non-GAAP results exclude
share-based compensation, amortization of acquisition-related
intangible assets
and the related income tax effects.
|
GAAP Quarterly
Results
|
(in millions, except
for per share data)
|
|
Q3 2011
|
Q2 2012
|
Q3 2012
|
|
(RMB)
|
(RMB)
|
(RMB)
|
(US$)
|
QoQ
|
Net Revenues
|
1,352.8
|
1,130.5
|
1,080.5
|
170.4
|
-4.4%
|
Gross Profit
|
829.8
|
705.2
|
684.5
|
107.9
|
-2.9%
|
Operating
Income
|
361.4
|
354.5
|
280.6
|
44.3
|
-20.8%
|
Government Financial
Incentives
|
43.6
|
16.9
|
69.5
|
11.0
|
311.2%
|
Net Income Attributable
to Ordinary Shareholders
|
342.6
|
308.4
|
253.9
|
40.0
|
-17.7%
|
Earnings Per Diluted
ADS
|
1.20
|
1.10
|
0.92
|
0.15
|
|
Third Quarter 2012 Unaudited Financial Results (GAAP)
Net Revenues. In the third quarter of
2012, Shanda Games reported net
revenues of RMB1,080.5 million
(US$170.4 million), compared with
RMB1,352.8 million in the third
quarter of 2011 and RMB1,130.5
million in the second quarter of 2012. Online game
revenues generated in China and
other revenues accounted for 93.9% and 6.1% of total net revenues,
respectively.
Net revenues from online games operated in China declined 20.7% year-over-year and 2.4%
quarter-over-quarter to RMB1,015.1
million (US$160.1 million) in
the third quarter of 2012. The sequential decrease was
primarily due to a decline in revenue from "AION" as the initial
attraction surrounding the launch of its 3.0 expansion pack in
March 2012 subsided, and a decline in
revenue from "Woool" as the Company continued last quarter's
strategy to decelerate the monetization of the game to ensure a
longer and healthier lifecycle. This was partially offset by
the first full quarter of revenue contribution from "Age of Wushu,"
an increase in revenue from "Dragon Nest" following the launch of
an expansion pack in August, and positive seasonal effects on games
during the third quarter of 2012.
Other revenues, which primarily represent net overseas revenues
generated from game licensing, game operations, and advertising,
were RMB65.4 million (US$10.3 million) in the third quarter of 2012,
compared with RMB72.1 million in the
third quarter of 2011 and RMB90.1
million in the second quarter of 2012. The
quarter-over-quarter decrease in other revenues was primarily due
to a decrease in advertising revenues related to cross-marketing
activities in China during the
third quarter of 2012.
Cost of Revenues. Cost of revenues
for the third quarter of 2012 was RMB396.0
million (US$62.5 million), a
decrease of 24.3% from RMB523.0
million in the third quarter of 2011 and 6.9% from
RMB425.3 million in the second
quarter of 2012. The quarter-over-quarter decrease was mainly
attributable to a decrease in royalty fees paid to third parties as
a result of lower revenues from licensed games and a decrease in
platform fees, which are calculated based upon the Company's
revenues, paid to Shanda
Online. Cost of revenues represented 36.6% of net
revenues, compared with 38.7% in the third quarter of 2011 and
37.6% in the second quarter of 2012.
Gross Profit. Gross profit for the third quarter
of 2012 was RMB684.5 million
(US$107.9 million), representing a
decrease of 17.5% from RMB829.8
million in the third quarter of 2011 and 2.9% from
RMB705.2 million in the second
quarter of 2012. Gross margin was 63.4% in the third quarter
of 2012, up from 61.3% in the third quarter of 2011 and 62.4% in
the second quarter of 2012.
Operating Expenses. Total operating expenses for
the third quarter of 2012 were RMB403.9
million (US$63.6 million),
representing a decrease of 13.8% from RMB468.4 million in the third quarter of 2011 and
an increase of 15.2% from RMB350.7
million in the second quarter of 2012. Operating
expenses represented 37.4% of net revenues, compared with 34.6% in
the third quarter of 2011 and 31.0% in the second quarter of
2012.
Product development expenses decreased 13.0% year-over-year and
increased 8.2% quarter-over-quarter to RMB161.5 million (US$25.4
million) in the third quarter of 2012. The sequential
increase in product development expenses was primarily due to an
annual salary increase for research and development personnel
during the third quarter of 2012. Product development
expenses represented 14.9% of net revenues, compared with 13.7% in
the third quarter of 2011 and 13.2% in the second quarter of
2012.
Sales and marketing expenses decreased 6.2% year-over-year and
increased 17.2% quarter-over-quarter to RMB152.5 million (US$24.0
million) in the third quarter of 2012. The sequential
increase was primarily due to an increase in service fees for
distributing and marketing prepaid cards and a seasonal increase in
marketing and promotional expenses for the summer holidays which
occurred during the third quarter. Sales and marketing
expenses represented 14.1% of net revenues, compared with 12.0% in
the third quarter of 2011 and 11.5% in the second quarter of
2012.
General and administrative expenses decreased 25.2%
year-over-year and increased 25.9% quarter-over-quarter to
RMB89.9 million (US$14.2 million) in the third quarter of 2012.
The sequential increase in general and administrative
expenses was primarily due to (i) an impairment of certain assets
as the Company initiated a series of restructuring measures and
streamlined its previous investments during the third quarter of
2012, (ii) a net increase in bad debt expense due to the second
quarter reversal of the bad debt provision previously recorded as a
result of subsequent repayment of a loan, and (iii) an increase in
share-based compensation expenses. The increases were
partially offset by a decline in sales tax expenses associated with
inter-company transactions during the third quarter of 2012.
General and administrative expenses accounted for 8.3% of net
revenues, compared with 8.9% in the third quarter of 2011 and 6.3%
in the second quarter of 2012.
Share-based compensation expenses were RMB11.5 million (US$1.8
million) in the third quarter of 2012, compared with
RMB30.4 million in the third quarter
of 2011 and RMB3.9 million in the
second quarter of 2012. The quarter-over-quarter increase was
primarily a result of the repricing of underwater share options
held by Company's officers and employees, which was partially
offset by a decline in share-based compensation expenses due to the
departure of senior executives during the third quarter of
2012.
Operating Income. Operating income
for the third quarter of 2012 was RMB280.6
million (US$44.3 million), a
decrease of 22.4% from RMB361.4
million in the third quarter of 2011 and 20.8% from
RMB354.5 million in the second
quarter of 2012. Operating margin was 26.0% in the third
quarter of 2012, compared with 26.7% in the third quarter of 2011
and 31.4% in the second quarter of 2012.
Government Financial Incentives. Government
financial incentives totaled RMB69.5
million (US$11.0 million) in
the third quarter of 2012, compared with RMB43.6 million in the third quarter of 2011 and
RMB16.9 million in the second quarter
of 2012. The Company's receipt of government financial
incentives is subject to time lags and inconsistent government
administrative practices relating to the timing of payments.
Other Income (Expense), Net. Other expense
for the third quarter of 2012 was RMB28.1
million (US$4.5 million),
compared with other income of RMB3.0
million in the third quarter of 2011 and other income of
RMB15.2 million in the second quarter
of 2012. The quarter-over-quarter change was mainly due to a
foreign exchange loss of RMB21.6
million (US$3.4 million)
recognized in the third quarter of 2012, compared with a foreign
exchange gain of RMB19.3 million in
the second quarter of 2012. The change in foreign exchange
gains and losses were mainly due to the unrealized exchange gains
and losses related to the foreign currency forward contracts.
Income Tax Expense. Income tax
expense for the third quarter of 2012 was RMB92.1 million (US$14.5
million), compared with RMB94.2
million in the third quarter of 2011 and RMB99.3 million in the second quarter of
2012.
Net Income Attributable to Ordinary Shareholders.
Net income for the third quarter of 2012 was RMB253.9 million (US$40.0
million), a decrease of 25.9% from RMB342.6 million in the third quarter of 2011 and
17.7% from RMB308.4 million in the
second quarter of 2012. Earnings per diluted ADS in the third
quarter of 2012 were RMB0.92
(US$0.15), compared with RMB1.20 in the third quarter of 2011 and
RMB1.10 in the second quarter of
2012.
Net Cash. In the third quarter of
2012 the Company generated RMB207.7
million (US$32.7 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, increased from
RMB3,036.6 million as of June 30, 2012 to RMB3,072.6 million (US$484.6 million) as of September 30, 2012.
Nine Months 2012 Unaudited Financial
Results
Net Revenues. Net revenues for the
first nine months of 2012 totaled RMB3,600.5
million (US$567.8 million), a
decrease of 8.3% from RMB3,925.9
million in the first nine months of 2011.
Gross Profit. Gross profit for
the first nine months of 2012 was RMB2,263.3
million (US$356.9 million), a
decrease of 5.4% from RMB2,391.7
million in the first nine months of 2011. Gross margin
was 62.9%, an increase from 60.9% in the first nine months of
2011.
Operating Income. Operating income
for the first nine months of 2012 was RMB1,071.4 million (US$169.0 million), a decrease of 0.2% from
RMB1,073.1 million in the first nine
months of 2011. Operating margin was 29.8%, an increase from
27.3% in the first nine months of 2011.
Non-GAAP Operating Income.
Non-GAAP operating income for the first nine months of
2012 was RMB1,208.0 million
(US$190.5 million), a decrease of
6.1% from RMB1,285.8 million in the
first nine months of 2011. Non-GAAP operating margin was
33.6%, an increase from 32.8% in the first nine months of 2011.
Net Income Attributable to Ordinary Shareholders.
Net income for the first nine months of 2012 was RMB899.1 million (US$141.8
million), a decrease of 6.4% from RMB960.6 million in the first nine months of
2011. Net margin was 25.0%, increased from 24.5% in the first
nine months of 2011. Earnings per diluted ADS were
RMB3.22 (US$0.51), compared with RMB3.38 in the first nine months of
2011.
Non-GAAP Net Income Attributable to Ordinary
Shareholders. Non-GAAP net income for the first nine
months of 2012 was RMB1,008.6 million
(US$159.1 million), a decrease of
11.7% from RMB1,142.0 million in the
first nine months 2011. Non-GAAP net margin was 28.0%,
compared with 29.1% in the first nine months of 2011.
Non-GAAP earnings per diluted ADS were RMB3.62 (US$0.57),
compared with RMB4.02 in the first
nine months of 2011.
Net Cash. In the first nine months of
2012 the Company generated RMB1,172.8
million (US$185.0 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, increased from
RMB2,160.1 million as of December 31, 2011 to RMB3,072.6 million (US$484.6 million) as of September 30, 2012.
Recent Business Highlights
- August 30, 2012 -
Shanda Games began unlimited
closed-beta testing for the web version of "Woool of Paladin"
(Han Jiang Chuan Shi), an in-house
developed fantasy web game based on the Company's Woool
franchise.
- August 31, 2012 -
NHN Korea began a second round of closed-beta testing for "Dungeon
Striker," an action MMORPG developed by Eyedentity Games, a
Korea-based game studio under Shanda
Games.
- September 14, 2012
- Shanda Games' board of
directors approved to adjust the exercise price for the share
options held by the officers and employees of the Company and its
subsidiaries and operating companies in China. The new exercise price for these
options is US $1.835 per Class A
ordinary share, representing the average closing price of the
Company's ADSs during the 15 consecutive trading days prior to
September 14, 2012 divided by
two.
- September 25, 2012
- Mail.Ru Group, a leading internet company in Russia, began commercial operation of
Shanda Games' 3D MMORPG "Dragon
Nest" in Russia.
- October 7, 2012 -
Eyedentity Games signed a publishing agreement for "Dungeon
Striker" with NHN Japan, a leading Japanese online game company.
Pursuant to the agreement, NHN Japan will be the exclusive
operator of "Dungeon Striker" in Japan.
- October 16, 2012 -
Shanda Games and Square Enix, a
leading game developer based in Japan, announced a mobile game partnership
under which the two companies will share their resources and
expertise in developing and operating mobile games. The
partnership includes joint development for the mobile versions of
"Final Fantasy I," "Final Fantasy II," "Final Fantasy III" and
"Diffusion Million Arthur" for distribution in China, Taiwan, Korea, and Southeast Asia.
- October 16, 2012 -
Eyedentity Games announced its first mobile game "Dragon Nest:
Labyrinth." Based on the popular PC-based MMORPG "Dragon
Nest," "Dragon Nest: Labyrinth" has adopted the same fast-paced
action and battle system of the original PC game. New
features such as real-time multiplayer, leveling system and player
community have been added in order to enhance the gaming experience
on mobile platforms. The game is expected to launch in
2013.
- October 23, 2012 -
Shanda Games began the first round
of closed-beta testing in Mainland China for "RIFT," a 3D MMORPG
licensed from Trion World.
Share Repurchase
In June 2012, the Company's Board
of Directors approved a share repurchase program under which the
Company is authorized to repurchase up to $100 million worth of its outstanding ADSs during
the next twelve (12) months. As of November 23, 2012, the Company has repurchased
approximately 10.9 million ADSs for an aggregate consideration of
US$40 million.
Conference Call and Webcast Notice
Shanda Games will host a
conference call at 9:00 a.m. on
November 27, 2012 Beijing/Hong Kong
Time (8:00 p.m. on November 26, 2012 Eastern Time), to discuss its
third quarter results.
Dial-in details for the live conference call are as follows:
U.S. Toll Free: 1866-519-4004
Mainland China Toll Free (for mobile
users): 400-620-8038
Mainland China Toll Free (for fixed
line users): 800-819-0121
Hong Kong Toll Free: 800-930-346
U.K. Toll Free: 0808-234-6646
International Toll: +65-6723-9381
Passcode: 71472066
A replay of the conference call will be available from
12:00 pm (Beijing/Hong Kong Time) on November 27, 2012 for 7 days.
U.S. Toll Free: 1855-452-5696
International Toll: +61-2-8199-0299
Passcode: 71472066
A live and archived webcast of the conference call will also be
available on Shanda Games' investor
relations website at http://ir.shandagames.com/.
Currency Convenience Translation
The United States dollar (US$)
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 RMB6.3410 to US$1.00 as published by the People's Bank of
China on September 28, 2012, the last
trading day of September 2012. 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. Adjustments to these
preliminary financial statements may be identified when audit work
is performed for the year-end audit, 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 attributable
to ordinary shareholders 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-Region and All-Platform" strategy; the
introduction and potential success of new game titles; the
expansion into global market; and the expansion into micro-clients
games, browser games and mobile games and the future benefits
brought by these games 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-Region and All-Platform" strategy and
the Company 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
Associate Director
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)
|
|
|
December 31
|
|
June 30
|
|
September 30
|
|
2011
|
|
2012
|
|
2012
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,835.5
|
|
1,546.3
|
|
1,625.6
|
|
256.4
|
Restricted
cash
|
20.4
|
|
35.4
|
|
258.4
|
|
40.8
|
Short-term
investments
|
2,209.0
|
|
2,533.9
|
|
2,356.5
|
|
371.6
|
Marketable
securities
|
3.8
|
|
4.6
|
|
6.5
|
|
1.0
|
Accounts receivable, net
of allowance for doubtful accounts
|
72.8
|
|
69.2
|
|
88.1
|
|
13.9
|
Accounts receivable due
from related parties
|
406.0
|
|
290.3
|
|
327.9
|
|
51.7
|
Deferred licensing fees
and related costs
|
19.8
|
|
10.4
|
|
12.1
|
|
1.9
|
Prepayments and other
current assets
|
182.0
|
|
239.1
|
|
203.7
|
|
32.1
|
Other receivables due
from related parties 1
|
931.3
|
|
2,036.8
|
|
2,063.9
|
|
325.5
|
Deferred tax
assets
|
74.7
|
|
52.0
|
|
65.3
|
|
10.3
|
Total current
assets
|
5,755.3
|
|
6,818.0
|
|
7,008.0
|
|
1,105.2
|
|
|
|
|
|
|
|
|
Time deposit with
maturity over one year
|
-
|
|
260.0
|
|
-
|
|
-
|
Investment in affiliated
companies
|
37.9
|
|
179.5
|
|
193.8
|
|
30.6
|
Investment in
securities
|
-
|
|
5.6
|
|
5.7
|
|
0.9
|
Property and
equipment
|
230.5
|
|
222.4
|
|
207.9
|
|
32.8
|
Intangible
assets
|
994.7
|
|
629.2
|
|
617.4
|
|
97.4
|
Goodwill
|
492.1
|
|
328.5
|
|
329.2
|
|
51.9
|
Long-term
deposits
|
95.1
|
|
52.7
|
|
53.2
|
|
8.4
|
Other long-term
assets
|
326.6
|
|
217.6
|
|
186.2
|
|
29.2
|
Non-current deferred tax
assets
|
26.4
|
|
25.2
|
|
22.6
|
|
3.6
|
Total assets
|
7,958.6
|
|
8,738.7
|
|
8,624.0
|
|
1,360.0
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term
borrowings
|
858.8
|
|
2,294.2
|
|
2,132.7
|
|
336.3
|
Accounts
payable
|
38.4
|
|
47.5
|
|
40.3
|
|
6.4
|
Accounts payable due to
related parties
|
77.3
|
|
63.8
|
|
64.2
|
|
10.1
|
Licensing fees
payable
|
188.2
|
|
257.6
|
|
149.1
|
|
23.5
|
Taxes payable
|
190.6
|
|
166.1
|
|
150.6
|
|
23.8
|
Deferred
revenue
|
173.4
|
|
120.7
|
|
139.3
|
|
22.0
|
Other payables and
accruals
|
416.0
|
|
373.4
|
|
383.0
|
|
60.3
|
Other payables due to
related parties 2
|
125.9
|
|
993.1
|
|
1,002.8
|
|
158.1
|
Dividend
payable
|
1,823.4
|
|
20.7
|
|
13.3
|
|
2.1
|
Deferred tax
liabilities
|
72.9
|
|
88.4
|
|
98.0
|
|
15.5
|
Total current
liabilities
|
3,964.9
|
|
4,425.5
|
|
4,173.3
|
|
658.1
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
68.9
|
|
89.6
|
|
99.9
|
|
15.8
|
Non-current deferred tax
liabilities
|
260.2
|
|
114.7
|
|
108.7
|
|
17.1
|
Non-current deferred
revenue
|
47.6
|
|
44.2
|
|
36.0
|
|
5.7
|
Total
liabilities
|
4,341.6
|
|
4,674.0
|
|
4,417.9
|
|
696.7
|
Redeemable
non-controlling interests
|
14.0
|
|
14.0
|
|
14.0
|
|
2.1
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Ordinary shares
outstanding
|
560,309,556
|
|
560,160,962
|
|
547,874,828
|
|
547,874,828
|
ADS equivalent
outstanding
|
280,154,778
|
|
280,080,481
|
|
273,937,414
|
|
273,937,414
|
|
|
|
|
|
|
|
|
Ordinary shares (US$0.01
par value)
|
40.9
|
|
40.9
|
|
40.1
|
|
6.3
|
Additional paid-in
capital
|
1,561.3
|
|
1,367.3
|
|
1,352.8
|
|
213.3
|
Statutory
reserves
|
147.1
|
|
149.8
|
|
149.8
|
|
23.6
|
Accumulated other
comprehensive loss
|
(68.5)
|
|
(62.6)
|
|
(47.9)
|
|
(7.5)
|
Retained
earnings
|
1,665.0
|
|
2,268.0
|
|
2,385.9
|
|
376.3
|
Total Shanda Games
Limited shareholders' equity
|
3,345.8
|
|
3,763.4
|
|
3,880.7
|
|
612.0
|
Non-controlling
interests
|
257.2
|
|
287.3
|
|
311.4
|
|
49.2
|
Total shareholders'
equity
|
3,603.0
|
|
4,050.7
|
|
4,192.1
|
|
661.2
|
Total liabilities and
shareholders' equity
|
7,958.6
|
|
8,738.7
|
|
8,624.0
|
|
1,360.0
|
Note:
- The balance of "other receivables due from related parties" as
of September 30, 2012 mainly
represented the outstanding loans we lent to our parent company
Shanda Interactive Entertainment Limited or its affiliates.
The aggregate amount of these loans was RMB1,952.6 million (US$307.9 million), with interest rates ranging
from 3% to 6.71%. The interest receivable related to these loans
amounted to RMB90.6 million
(US$14.3 million).
- The balance of "other payables due to related parties" as of
September 30, 2012 mainly represented
the outstanding loans we obtained from our parent company Shanda
Interactive Entertainment Limited or its affiliates. The
aggregate amount of these loans was RMB974.5
million (US$153.7 million),
with interest rates ranging from 1.8% to 3%. The interest payable
related to these loans amounted to RMB18.5
million (US$2.9 million).
SHANDA GAMES
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions, except
for share and per share data)
|
|
|
Three months
ended
|
|
September 30
2011
|
|
June 31
2012
|
|
September 30
2012
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net revenues:
|
|
|
|
|
|
|
|
Online game revenues
generated in China
|
1,280.7
|
|
1,040.4
|
|
1,015.1
|
|
160.1
|
Other
revenues
|
72.1
|
|
90.1
|
|
65.4
|
|
10.3
|
Total net
revenues
|
1,352.8
|
|
1,130.5
|
|
1,080.5
|
|
170.4
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(523.0)
|
|
(425.3)
|
|
(396.0)
|
|
(62.5)
|
|
|
|
|
|
|
|
|
Gross profit
|
829.8
|
|
705.2
|
|
684.5
|
|
107.9
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Product
development
|
(185.7)
|
|
(149.2)
|
|
(161.5)
|
|
(25.4)
|
Sales and
marketing
|
(162.5)
|
|
(130.1)
|
|
(152.5)
|
|
(24.0)
|
General and
administrative
|
(120.2)
|
|
(71.4)
|
|
(89.9)
|
|
(14.2)
|
Total operating
expenses
|
(468.4)
|
|
(350.7)
|
|
(403.9)
|
|
(63.6)
|
|
|
|
|
|
|
|
|
Income from
operations
|
361.4
|
|
354.5
|
|
280.6
|
|
44.3
|
Interest income net with
interest expense
|
36.3
|
|
29.0
|
|
32.8
|
|
5.2
|
Government financial
incentives
|
43.6
|
|
16.9
|
|
69.5
|
|
11.0
|
Other income (expense),
net
|
3.0
|
|
15.2
|
|
(28.1)
|
|
(4.5)
|
Income before income tax
expenses, equity in affiliated
companies, and non-controlling interests
|
444.3
|
|
415.6
|
|
354.8
|
|
56.0
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
(94.2)
|
|
(99.3)
|
|
(92.1)
|
|
(14.5)
|
Equity in loss of
affiliated companies
|
(2.9)
|
|
(2.7)
|
|
(4.9)
|
|
(0.8)
|
Net income
|
347.2
|
|
313.6
|
|
257.8
|
|
40.7
|
Net income attributable
to non-controlling interests
|
(4.6)
|
|
(5.2)
|
|
(3.9)
|
|
(0.7)
|
Net income attributable
to ordinary shareholders
|
342.6
|
|
308.4
|
|
253.9
|
|
40.0
|
|
|
|
|
|
|
|
|
Earnings per ordinary
share
|
|
|
|
|
|
|
|
Basic
|
0.60
|
|
0.55
|
|
0.46
|
|
0.07
|
Diluted
|
0.60
|
|
0.55
|
|
0.46
|
|
0.07
|
|
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
|
|
Basic
|
1.20
|
|
1.10
|
|
0.92
|
|
0.15
|
Diluted
|
1.20
|
|
1.10
|
|
0.92
|
|
0.15
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
|
|
Basic
|
569,927,358
|
|
560,915,794
|
|
554,753,776
|
|
554,753,776
|
Diluted
|
570,040,780
|
|
560,923,399
|
|
554,759,632
|
|
554,759,632
|
|
|
|
|
|
|
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
|
Basic
|
284,963,679
|
|
280,457,897
|
|
277,376,888
|
|
277,376,888
|
Diluted
|
285,020,390
|
|
280,461,700
|
|
277,379,816
|
|
277,379,816
|
|
|
|
|
|
|
|
|
Reconciliation from
non-GAAP measures to GAAP measures
|
|
Non-GAAP gross
profit
|
859.3
|
|
726.2
|
|
705.4
|
|
111.2
|
Intangible assets
amortization arising from acquisition
|
(29.3)
|
|
(21.0)
|
|
(20.9)
|
|
(3.3)
|
Share-based compensation
cost
|
(0.2)
|
|
-
|
|
-
|
|
-
|
GAAP gross
profit
|
829.8
|
|
705.2
|
|
684.5
|
|
107.9
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
433.1
|
|
390.8
|
|
324.2
|
|
51.1
|
Intangible assets
amortization arising from acquisition
|
(41.3)
|
|
(32.4)
|
|
(32.1)
|
|
(5.0)
|
Share-based compensation
cost
|
(30.4)
|
|
(3.9)
|
|
(11.5)
|
|
(1.8)
|
GAAP operating
income
|
361.4
|
|
354.5
|
|
280.6
|
|
44.3
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to ordinary shareholders
|
403.5
|
|
336.8
|
|
289.9
|
|
45.7
|
Intangible assets
amortization arising from acquisition
|
(41.3)
|
|
(32.4)
|
|
(32.1)
|
|
(5.0)
|
Share-based compensation
cost
|
(30.4)
|
|
(3.9)
|
|
(11.5)
|
|
(1.8)
|
Income tax
effect
|
10.1
|
|
7.1
|
|
7.0
|
|
1.0
|
Intangible assets
amortization of non-controlling interests
|
0.7
|
|
0.8
|
|
0.6
|
|
0.1
|
GAAP net income
attributable to ordinary shareholders
|
342.6
|
|
308.4
|
|
253.9
|
|
40.0
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share
|
0.71
|
|
0.60
|
|
0.52
|
|
0.08
|
Non-GAAP expense per
share
|
(0.11)
|
|
(0.05)
|
|
(0.06)
|
|
(0.01)
|
GAAP diluted earnings
per share
|
0.60
|
|
0.55
|
|
0.46
|
|
0.07
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per ADS
|
1.42
|
|
1.20
|
|
1.04
|
|
0.17
|
Non-GAAP expense per
ADS
|
(0.22)
|
|
(0.10)
|
|
(0.12)
|
|
(0.02)
|
GAAP diluted earnings
per ADS
|
1.20
|
|
1.10
|
|
0.92
|
|
0.15
|
|
|
|
|
|
|
|
|
Supplemental disclosure of intangible assets amortization arising
from acquisitions included in:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(29.3)
|
|
(21.0)
|
|
(20.9)
|
|
(3.3)
|
Product
development
|
(3.2)
|
|
(6.9)
|
|
(6.9)
|
|
(1.0)
|
Sales and
marketing
|
(3.8)
|
|
(2.3)
|
|
(1.8)
|
|
(0.3)
|
General and
administrative
|
(5.0)
|
|
(2.2)
|
|
(2.5)
|
|
(0.4)
|
Total
|
(41.3)
|
|
(32.4)
|
|
(32.1)
|
|
(5.0)
|
|
|
|
|
|
|
|
|
Supplemental disclosure of share-based compensation cost included
in:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(0.2)
|
|
-
|
|
-
|
|
-
|
Product
development
|
(6.1)
|
|
(6.1)
|
|
(4.8)
|
|
(0.8)
|
Sales and
marketing
|
(0.1)
|
|
-
|
|
(0.3)
|
|
-
|
General and
administrative
|
(24.0)
|
|
2.2
|
|
(6.4)
|
|
(1.0)
|
Total
|
(30.4)
|
|
(3.9)
|
|
(11.5)
|
|
(1.8)
|
|
|
|
|
|
|
|
|
SHANDA GAMES
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions, except
for share and per share data)
|
|
|
Nine months
ended
|
|
September 30
2011
|
|
September 30
2012
|
|
RMB
|
|
RMB
|
|
US$
|
Net revenues:
|
|
|
|
|
|
Online game revenues
generated in China
|
3,713.4
|
|
3,344.1
|
|
527.4
|
Other
revenues
|
212.5
|
|
256.4
|
|
40.4
|
Total net
revenues
|
3,925.9
|
|
3,600.5
|
|
567.8
|
|
|
|
|
|
|
Cost of
revenues
|
(1,534.2)
|
|
(1,337.2)
|
|
(210.9)
|
|
|
|
|
|
|
Gross profit
|
2,391.7
|
|
2,263.3
|
|
356.9
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Product
development
|
(504.1)
|
|
(486.6)
|
|
(76.7)
|
Sales and
marketing
|
(467.8)
|
|
(438.8)
|
|
(69.2)
|
General and
administrative
|
(346.7)
|
|
(266.5)
|
|
(42.0)
|
Total operating
expenses
|
(1,318.6)
|
|
(1,191.9)
|
|
(187.9)
|
|
|
|
|
|
|
Income from
operations
|
1,073.1
|
|
1,071.4
|
|
169.0
|
Interest income net with
interest expense
|
77.8
|
|
81.7
|
|
12.9
|
Government financial
incentives
|
87.3
|
|
96.4
|
|
15.2
|
Other (expense),
net
|
(3.8)
|
|
(19.0)
|
|
(3.0)
|
Income before income tax
expenses, equity in affiliated companies,
and non-controlling interests
|
1,234.4
|
|
1,230.5
|
|
194.1
|
|
|
|
|
|
|
Income tax
expenses
|
(258.9)
|
|
(296.7)
|
|
(46.8)
|
Equity in loss of
affiliated companies
|
(4.5)
|
|
(13.0)
|
|
(2.1)
|
Net income
|
971.0
|
|
920.8
|
|
145.2
|
Net income attributable
to non-controlling interests
|
(10.4)
|
|
(21.7)
|
|
(3.4)
|
Net income attributable
to ordinary shareholders
|
960.6
|
|
899.1
|
|
141.8
|
|
|
|
|
|
|
Earnings per ordinary
share
|
|
|
|
|
|
Basic
|
1.69
|
|
1.61
|
|
0.25
|
Diluted
|
1.69
|
|
1.61
|
|
0.25
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
Basic
|
3.38
|
|
3.22
|
|
0.51
|
Diluted
|
3.38
|
|
3.22
|
|
0.51
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
Basic
|
569,236,463
|
|
558,751,392
|
|
558,751,392
|
Diluted
|
569,275,017
|
|
558,786,563
|
|
558,786,563
|
|
|
|
|
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
Basic
|
284,618,232
|
|
279,375,696
|
|
279,375,696
|
Diluted
|
284,637,509
|
|
279,393,282
|
|
279,393,282
|
|
|
|
|
|
|
SHANDA GAMES
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions, except
for share and per share data)
|
|
|
Nine months
ended
|
|
September 30
2011
|
|
September 30
2012
|
|
RMB
|
|
RMB
|
|
US$
|
Net revenues:
|
|
|
|
|
|
Online game revenues
generated in China
|
3,713.4
|
|
3,344.1
|
|
527.4
|
Other
revenues
|
212.5
|
|
256.4
|
|
40.4
|
Total net
revenues
|
3,925.9
|
|
3,600.5
|
|
567.8
|
|
|
|
|
|
|
Cost of
revenues
|
(1,534.2)
|
|
(1,337.2)
|
|
(210.9)
|
|
|
|
|
|
|
Gross profit
|
2,391.7
|
|
2,263.3
|
|
356.9
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Product
development
|
(504.1)
|
|
(486.6)
|
|
(76.7)
|
Sales and
marketing
|
(467.8)
|
|
(438.8)
|
|
(69.2)
|
General and
administrative
|
(346.7)
|
|
(266.5)
|
|
(42.0)
|
Total operating
expenses
|
(1,318.6)
|
|
(1,191.9)
|
|
(187.9)
|
|
|
|
|
|
|
Income from
operations
|
1,073.1
|
|
1,071.4
|
|
169.0
|
Interest income net with
interest expense
|
77.8
|
|
81.7
|
|
12.9
|
Government financial
incentives
|
87.3
|
|
96.4
|
|
15.2
|
Other (expense),
net
|
(3.8)
|
|
(19.0)
|
|
(3.0)
|
Income before income tax
expenses, equity in affiliated
companies, and non-controlling interests
|
1,234.4
|
|
1,230.5
|
|
194.1
|
|
|
|
|
|
|
Income tax
expenses
|
(258.9)
|
|
(296.7)
|
|
(46.8)
|
Equity in loss of
affiliated companies
|
(4.5)
|
|
(13.0)
|
|
(2.1)
|
Net income
|
971.0
|
|
920.8
|
|
145.2
|
Net income attributable
to non-controlling interests
|
(10.4)
|
|
(21.7)
|
|
(3.4)
|
Net income attributable
to ordinary shareholders
|
960.6
|
|
899.1
|
|
141.8
|
|
|
|
|
|
|
Earnings per ordinary
share
|
|
|
|
|
|
Basic
|
1.69
|
|
1.61
|
|
0.25
|
Diluted
|
1.69
|
|
1.61
|
|
0.25
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
Basic
|
3.38
|
|
3.22
|
|
0.51
|
Diluted
|
3.38
|
|
3.22
|
|
0.51
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
Basic
|
569,236,463
|
|
558,751,392
|
|
558,751,392
|
Diluted
|
569,275,017
|
|
558,786,563
|
|
558,786,563
|
|
|
|
|
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
Basic
|
284,618,232
|
|
279,375,696
|
|
279,375,696
|
Diluted
|
284,637,509
|
|
279,393,282
|
|
279,393,282
|
|
|
|
|
|
|
Reconciliation from
non-GAAP measures to GAAP measures
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
2,480.1
|
|
2,331.5
|
|
367.7
|
Intangible assets
amortization arising from acquisition
|
(87.7)
|
|
(68.0)
|
|
(10.7)
|
Share-based compensation
cost
|
(0.7)
|
|
(0.2)
|
|
(0.1)
|
GAAP gross
profit
|
2,391.7
|
|
2,263.3
|
|
356.9
|
|
|
|
|
|
|
Non-GAAP operating
income
|
1,285.8
|
|
1,208.0
|
|
190.5
|
Intangible assets
amortization arising from acquisition
|
(122.6)
|
|
(106.3)
|
|
(16.7)
|
Share-based compensation
cost
|
(90.1)
|
|
(30.3)
|
|
(4.8)
|
GAAP operating
income
|
1,073.1
|
|
1,071.4
|
|
169.0
|
|
|
|
|
|
|
Non-GAAP net income
attributable to ordinary shareholders
|
1,142.0
|
|
1,008.6
|
|
159.1
|
Intangible assets
amortization arising from acquisition
|
(122.6)
|
|
(106.3)
|
|
(16.7)
|
Share-based compensation
cost
|
(90.1)
|
|
(30.3)
|
|
(4.8)
|
Income tax
effect
|
29.8
|
|
24.9
|
|
3.9
|
Intangible assets
amortization of non-controlling interests
|
1.5
|
|
2.2
|
|
0.3
|
GAAP net income
attributable to ordinary shareholders
|
960.6
|
|
899.1
|
|
141.8
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share
|
2.01
|
|
1.81
|
|
0.28
|
Non-GAAP expense per
share
|
(0.32)
|
|
(0.20)
|
|
(0.03)
|
GAAP diluted earnings
per share
|
1.69
|
|
1.61
|
|
0.25
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per ADS
|
4.02
|
|
3.62
|
|
0.57
|
Non-GAAP expense per
ADS
|
(0.64)
|
|
(0.40)
|
|
(0.06)
|
GAAP diluted earnings
per ADS
|
3.38
|
|
3.22
|
|
0.51
|
|
|
|
|
|
|
Supplemental disclosure
of intangible assets amortization arising from acquisitions
included in:
|
|
|
|
|
|
|
Cost of
revenues
|
(87.7)
|
|
(68.0)
|
|
(10.7)
|
Product
development
|
(9.5)
|
|
(20.6)
|
|
(3.3)
|
Sales and
marketing
|
(10.5)
|
|
(7.9)
|
|
(1.2)
|
General and
administrative
|
(14.9)
|
|
(9.8)
|
|
(1.5)
|
Total
|
(122.6)
|
|
(106.3)
|
|
(16.7)
|
|
|
|
|
|
|
Supplemental disclosure
of share-based compensation cost included in:
|
|
|
|
|
|
|
Cost of
revenues
|
(0.7)
|
|
(0.2)
|
|
(0.1)
|
Product
development
|
(18.4)
|
|
(14.9)
|
|
(2.3)
|
Sales and
marketing
|
(0.1)
|
|
(0.3)
|
|
-
|
General and
administrative
|
(70.9)
|
|
(14.9)
|
|
(2.4)
|
Total
|
(90.1)
|
|
(30.3)
|
|
(4.8)
|
|
|
|
|
|
|
SHANDA GAMES
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions, except
for share and per share data)
|
|
|
Nine months
ended
|
|
|
September 30
2011
|
|
September 30
2012
|
|
|
RMB
|
|
RMB
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
971.0
|
|
920.8
|
|
145.2
|
Adjustments
for:
|
|
|
|
|
|
|
Share-based compensation
expenses
|
|
90.1
|
|
30.3
|
|
4.8
|
Depreciation and
amortization
|
|
261.3
|
|
207.6
|
|
32.7
|
Others
|
|
(28.0)
|
|
56.3
|
|
8.9
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
|
|
|
Prepayments and
licensing fee and royalty
|
|
(315.1)
|
|
9.6
|
|
1.5
|
Others
|
|
4.7
|
|
(51.8)
|
|
(8.1)
|
Net cash provided by
operating activities
|
|
984.0
|
|
1,172.8
|
|
185.0
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchase of property,
equipment and intangible assets
|
|
(100.5)
|
|
(49.8)
|
|
(7.9)
|
Acquisition (net of cash
acquired) and equity investment
|
|
(9.9)
|
|
(42.6)
|
|
(6.7)
|
Changes of short-term
investments and time deposit with maturity over one year
|
|
(264.4)
|
|
(127.5)
|
|
(20.1)
|
Increase in loan
receivable
|
|
(383.0)
|
|
(1,059.0)
|
|
(167.0)
|
Others
|
|
(24.2)
|
|
(7.8)
|
|
(1.2)
|
Net cash used in
investing activities
|
|
(782.0)
|
|
(1,286.7)
|
|
(202.9)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Repurchase of common
stock
|
|
-
|
|
(170.5)
|
|
(26.9)
|
Proceeds from loan
borrowed
|
|
940.4
|
|
3,523.8
|
|
555.7
|
Repayment of
loans
|
|
(907.3)
|
|
(1,403.5)
|
|
(221.3)
|
Dividends paid to the
company shareholders
|
|
-
|
|
(1,809.3)
|
|
(285.3)
|
Others
|
|
(400.2)
|
|
(243.9)
|
|
(38.5)
|
Net cash used in
financing activities
|
|
(367.1)
|
|
(103.4)
|
|
(16.3)
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
(18.6)
|
|
7.4
|
|
1.1
|
Net decrease in cash and
cash equivalents
|
|
(183.7)
|
|
(209.9)
|
|
(33.1)
|
Cash and cash
equivalents, beginning of period
|
|
1,571.8
|
|
1,835.5
|
|
289.5
|
Cash and cash
equivalents, end of period
|
|
1,388.1
|
|
1,625.6
|
|
256.4
|
SOURCE Shanda Games Limited