SHENZHEN, China, Feb. 20, 2019 /PRNewswire/ -- 500.com Limited
(NYSE: WBAI) ("500.com" or the "Company"), a leading online sports
lottery service provider in China,
today reported its unaudited financial results for the
fourth quarter and full year ended December 31, 2018.
Physical Sales Channels of Sports Lottery Tickets
On March 6, 2018, the Company
entered into a framework agreement with the China Sports Lottery
Administration Center ("CSLA"), under which, both parties plan to
cooperate to develop physical channels to sell sports lottery
tickets.
As of the reporting date, the Company has entered into framework
agreements with Tianjin,
Hunan and several other provinces
and cities in China, assisted in
developing physical sales channels of sports lottery tickets and
started trial operations in Tianjin, Hunan,
Hubei, Guangxi and several other provinces and cities
in China. The Company is committed
to assisting sports lottery sales organizations throughout the
country to improve the distribution of physical sales channel
outlets, in order to enhance the convenience of sports lottery
ticket purchases and optimize the user experience for lottery
purchasers.
Suspension of Online Sports Lottery Sales in China
All provincial sports lottery administration centers to which
the Company provided sports lottery sales services have suspended
accepting online purchase orders for lottery products in response
to the Notice related to Self-Inspection and Self-Remedy of
Unauthorized Online Lottery Sales, (the "Self-Inspection Notice"),
which was jointly promulgated by the Ministry of Finance, the
Ministry of Civil Affairs and the General Administration of Sports
of the People's Republic of China
on January 15, 2015. In response to
the Self-Inspection Notice, on April 4,
2015, the Company decided to voluntarily suspend all online
lottery sales services. As a result of the provincial sport lottery
administration centers' decision to suspend accepting online
lottery orders and the Company's voluntary suspension of all online
sports lottery sales services in China, the Company has not generated any
revenue from these services since April
2015.
Other Recent Material Transaction
On February 9, 2018, the Company
disposed of its 51% equity interest in Qufan Internet Technology
Inc., and Shenzhen Qufan Network Technology Co., Ltd, ("Qufan"), an
operator of mobile social poker games, which was acquired on
November 25, 2016. The Company's
consolidated statements of comprehensive loss for the fourth
quarters and full years ended December 31,
2018 and December 31, 2017
have been reclassified to reflect the Qufan business segment as a
discontinued operation.
Fourth Quarter 2018 Highlights
for Continuing Operations
- Net revenues were RMB27.2 million
(US$4.0 million), compared with
RMB30.1 million for the third quarter
2018, and RMB35.6 million for the
fourth quarter of 2017.
- Operating loss was RMB245.2
million (US$35.7 million),
compared with operating loss of RMB100.3
million for the third quarter of 2018, and operating loss of
RMB142.8 million for the fourth
quarter of 2017.
- Non-GAAP[1] operating loss was RMB220.0 million (US$32.0
million), compared with non-GAAP operating loss of
RMB57.6 million for the third quarter
of 2018, and non-GAAP operating loss of RMB119.6 million for the fourth quarter of
2017.
- Net loss attributable to 500.com was RMB247.7 million (US$36.0
million), compared with net loss attributable to 500.com of
RMB96.5 million for the third quarter
of 2018, and net loss attributable to 500.com of RMB127.1 million for the fourth quarter of
2017.
- Non-GAAP net loss attributable to 500.com was RMB222.5 million (US$32.4
million), compared with non-GAAP net loss attributable to
500.com of RMB53.8 million for the
third quarter of 2018, and non-GAAP net loss attributable to
500.com of RMB103.9 million for the
fourth quarter of 2017.
- Basic and diluted losses per ADS were RMB6.05 (US$0.88).
- Non-GAAP basic and diluted losses per ADS were RMB5.50 (US$0.80).
[1]
Non-GAAP financial measures exclude the impact of share-based
compensation expenses. Reconciliations of non-GAAP financial
measures to U.S. GAAP financial measures are set forth in the table
at the end of this release.
|
Full Year 2018 Highlights for Continuing
Operations
- Net revenues were RMB126.1
million (US$18.3 million),
compared with net revenues of RMB72.6
million for the full year 2017.
- Operating loss was RMB494.4
million (US$71.9 million),
compared with operating loss of RMB367.3
million for the full year 2017.
- Non-GAAP operating loss was RMB385.8
million (US$56.1 million),
compared with non-GAAP operating loss of RMB276.2 million for the full year 2017.
- Net loss attributable to 500.com was RMB453.9 million (US$66.0
million), compared with net loss attributable to 500.com of
RMB332.4 million for the full year
2017.
- Non-GAAP net loss attributable to 500.com was RMB345.2 million (US$50.2
million), compared with non-GAAP net loss attributable to
500.com of RMB241.3 million for the
full year 2017.
- Basic and diluted losses per ADS were RMB11.30 (US$1.64).
- Non-GAAP basic and diluted losses per ADS were RMB8.50 (US$1.20).
Mr. Zhengming Pan, the CEO of
500.com, stated, "Since we voluntarily suspended our online lottery
sales operations in April 2015, we
have continued to engage in new and promising initiatives to
increase our revenue base. For example, we acquired TMG in
July 2017, and this acquisition has
significantly increased our revenue. In addition, in March 2018, we entered into a framework agreement
with CSLA, under which, both parties plan to cooperate to develop
physical channels to sell sports lottery tickets. In that regard,
we have entered into framework agreements with Tianjin, Hunan and several other provinces and cities
in China, to assist them in
developing physical sales channels of sports lottery tickets. We
also have started trial operations in Tianjin, Hunan, Hubei,
Guangxi and several other
provinces and cities in China. We
will continue to look for opportunities to enhance value for our
shareholders."
Fourth Quarter 2018 Financial
Results for Continuing Operations
Net Revenues
The Company has assessed the impact of the ASC 606 guidance at
the beginning of 2018 by reviewing its existing customer contracts
and current accounting policies and practices to identify
differences that will result from applying the new requirements,
including the evaluation of its performance obligations,
transaction price, customer payments, transfer of control and
principal versus agent considerations. Based on the
assessment, the Company concluded that there was no change to the
timing and pattern of revenue recognition for its current revenue
streams in scope of Topic 606 and therefore there were no material
changes to the Company's consolidated financial statements upon
adoption of ASC 606.
Net revenues were RMB27.2 million
(US$4.0 million) for the fourth
quarter of 2018, representing a decrease of RMB8.4 million or 23.6% from RMB35.6 million for the fourth quarter of 2017
and a decrease of RMB2.9 million or
9.6% from RMB30.1 million for
the third quarter of 2018. Net revenues during the fourth
quarter of 2018 consisted primarily of RMB22.3 million (EUR2.8
million) in revenue contribution from the Company's
online lottery betting and online casino in Europe through TMG, which accounted for 82.0%
of total net revenues.
Operating Expenses
Operating expenses were RMB273.5
million (US$39.8 million) for
the fourth quarter of 2018, representing an increase of
RMB123.1 million or 81.8% from
RMB150.4 million for the
fourth quarter of 2017, and an increase of RMB137.8 million or 101.5% from
RMB135.7 million for the
third quarter of 2018. The year-over-year increase
was mainly due to an impairment provision of RMB149.9 million provided for the Company's
long-term investment during the fourth quarter of 2018, compared
with an impairment provision of RMB28.8
million provided for long-term investment for the same
period of 2017; an increase of RMB4.7 million in depreciation and amortization
mainly associated with the leasehold improvements for the Company's
new offices which were put into use at the end of 2017; an increase
of RMB2.0 million in share-based
compensation expenses associated with share options granted to the
Company's employees; an increase of RMB1.3
million in platform service costs for TMG associated with
its online casino operations; and an increase of RMB0.8 million in lottery insurance costs for TMG
associated with its online lottery operations; which were partially
offset by a decrease of RMB5.7
million in marketing and promotional expenses relating to
mobile gaming. The sequential increase was mainly due to an
impairment provision of RMB149.9
million provided for long-term investment during the fourth
quarter of 2018; an increase of RMB7.1
million in expenses for employees; an increase of
RMB1.1 million in travelling and
related expenses; an increase of RMB0.9
million in lottery insurance costs for TMG associated with
its online lottery operations; an increase of RMB0.6 million in platform service costs for TMG
associated with its online casino operations, which were
partially offset by a decrease of RMB17.5
million in share-based compensation expenses associated with
share options granted to the Company's employees and a decrease of
RMB4.9 million in marketing and
promotional expenses relating to advertising during the World
Cup.
Cost of services was RMB20.6 million (US$3.0 million) for the fourth quarter of
2018, representing an increase of RMB2.5
million or 13.8% from RMB18.1 million for the fourth quarter
of 2017, and an increase of RMB2.1
million or 11.4% from RMB18.5 million for the third quarter
of 2018. The year-over-year increase was mainly attributable
to an increase of RMB1.3 million
in platform service costs for TMG associated with its online casino
operations; an increase of RMB0.8
million in lottery insurance costs for TMG associated with
its online lottery operations; and an increase of RMB0.4 million in depreciation associated with
sports lottery terminals. The sequential increase was mainly
attributable to an increase of RMB0.9
million in lottery insurance costs for TMG associated with
its online lottery operations; an increase of RMB0.6 million in platform service costs for TMG
associated with its online casino operations; and an increase of
RMB0.5 million in server hosting
costs.
Sales and marketing expenses were RMB22.8 million (US$3.3 million) for the fourth quarter of
2018, representing a slight decrease of RMB0.9 million or 3.8% from RMB23.7 million for the fourth quarter
of 2017, and a decrease of RMB3.8
million or 14.3% from RMB26.6
for the third quarter of 2018. The sequential decrease was mainly
attributable to a decrease of RMB4.9
million in marketing and promotional expenses relating to
advertising during the World Cup and a decrease of
RMB1.7 million in share-based
compensation expenses associated with share options granted to the
Company's employees, which were partially offset by an increase of
RMB2.3 million in expenses
for employees; an increase of RMB0.2
million in depreciation associated with leasehold
improvements for the Company's provincial offices associated with
physical sales channels of sports lottery tickets; and an increase
of RMB0.2 million in travelling and
related expenses.
General and administrative expenses were RMB64.0 million (US$9.3 million) for the fourth quarter of
2018, representing a slight increase of RMB2.1 million or 3.4% from RMB61.9 million for the fourth quarter of
2017, and a decrease of RMB9.3
million or 12.7% from RMB73.3 million for the third quarter
of 2018. The sequential decrease was mainly due to a decrease of
RMB12.8 million in share-based
compensation expenses associated with share options granted to the
Company's employees, which was partially offset by an increase
of RMB2.8 million in expenses for
employees and an increase of RMB0.9
million in travelling and related expenses.
Service development expenses were RMB16.1 million (US$2.3 million) for the fourth quarter of
2018, representing a decrease of RMB1.9
million or 10.6% from RMB18.0
million for the fourth quarter of 2017, and a decrease of
RMB1.3 million or 7.5% from
RMB17.4 million for the
third quarter of 2018. The year-over-year decrease was mainly
due to a decrease of RMB2.2
million in expenses for employees; a decrease of
RMB0.6 million in consulting
expenses; a decrease of RMB0.5
million in technical fees; and a decrease of RMB0.3 million in travelling and related
expenses, which were partially offset by an increase of
RMB1.9 million in rental expenses for
the Company's new offices which were put into use at the end
of 2017. The sequential decrease was mainly due to a decrease of
RMB3.0 million in share-based
compensation expenses associated with share options granted to the
Company's employees, which was partially offset by an increase of
RMB2.0 million in expenses for
employees.
Impairment of equity method investments was RMB149.9 million (US$21.8
million) for the fourth quarter of 2018, representing an
increase of RMB121.1 million or
420.5% from RMB28.8 million for the
fourth quarter of 2017, there was no such impairment for the third
quarter of 2018. The impairment of equity method investments was
related to the Company's investment in Loto Interactive limited,
which was calculated based on the closing market price on
December 31, 2018.
Operating Loss
Operating loss was RMB245.2
million (US$35.7 million) for
the fourth quarter of 2018, compared with operating loss of
RMB142.8 million for the
fourth quarter of 2017, and operating loss of RMB100.3 million for the third quarter of
2018.
Non-GAAP operating loss was RMB220.0
million (US$32.0 million) for
the fourth quarter of 2018, compared with non-GAAP operating
loss of RMB119.6 million
for the fourth quarter of 2017, and non-GAAP operating loss of
RMB57.6 million for the
third quarter of 2018.
Net Loss Attributable to
500.com
Net loss attributable to 500.com was RMB247.7 million (US$36.0 million) for the fourth quarter of 2018,
compared with net loss attributable to 500.com of RMB127.1 million for the fourth quarter
of 2017, and net loss attributable to 500.com of RMB96.5 million for the third quarter
of 2018. The year-over-year increase was mainly due to an
impairment provision of RMB149.9
million provided for long-term investment during the fourth
quarter of 2018, compared with an impairment provision of
RMB28.8 million provided for
long-term investment during the fourth quarter of 2017. The
sequential increase was mainly due to an impairment provision of
RMB149.9 million provided for
long-term investment during the fourth quarter of 2018, while no
such impairment provision provided for the third quarter of
2018.
Non-GAAP net loss attributable to 500.com was RMB222.5 million (US$32.4
million) for the fourth quarter of 2018, compared with
non-GAAP net loss attributable to 500.com of RMB103.9 million for the fourth quarter
of 2017, and non-GAAP net loss attributable to 500.com of
RMB53.8 million for the
third quarter of 2018.
Fourth Quarter 2018 Financial
Results for Discontinued Operations
Net income from discontinued operations, net of
taxes
The Company disposed of Qufan on February
9, 2018 for a total consideration of RMB127.5 million and recognized a disposal gain
of RMB10.2 million, including foreign
exchange loss, thus there were no net income from discontinued
operations for the three months ended December 31, 2018 and September 30, 2018. Net loss from discontinued
operations, net of taxes, was RMB2.9
million for the three months ended December 31, 2017.
Full Year 2018 Financial
Results for Continuing Operations
Net revenues for the full year 2018 were RMB126.1 million (US$18.3 million), representing an
increase of RMB 53.5 million or
73.7% from RMB72.6 million for the
full year 2017. The Company acquired the TMG in July 2017, on a pro forma basis, had the TMG
acquisition been completed on January 1,
2017, it would have contributed a full-year total net
revenue of RMB93.4 million
(EUR12.2 million) to the Company,
which would have brought the total net revenue of the Company to
RMB116.6 million for the
year 2017. The year-over-year increase in net revenue on
pro forma basis would have been only RMB9.5
million or 8.1%.
Operating loss for the full year 2018 was RMB494.4 million (US$71.9 million), representing
an increase of RMB 127.1 million or 34.6%
from RMB367.3 million for the full year 2017.
Non-GAAP operating loss for the full year 2018 was RMB385.8 million (US$56.1
million), representing an increase of RMB109.6 million or 39.7% from RMB276.2 million for the full year 2017.
Net loss attributable to 500.com for the full year 2018 was
RMB453.9 million (US$66.0 million), representing an
increase of RMB121.5 million or
36.6% from RMB332.4 million for the
full year 2017.
Non-GAAP net loss attributable to 500.com for the full year 2018
was RMB345.2 million (US$50.2 million), representing an
increase of RMB103.9 million or
43.1% from RMB241.3 million for the
full year 2017.
Cash and Cash Equivalents, Restricted Cash, Time
Deposits and Short-term Investments
As of December 31, 2018, the
Company had cash and cash equivalents of RMB435.1 million (US$63.3 million), restricted
cash[2] of RMB1.3 million (US$0.2 million) and short-term investments of
RMB100.0 million (US$14.5 million), compared with cash and cash
equivalents of RMB496.4 million,
restricted cash of RMB1.3
million and short-term investments of RMB100.0 million as of September 30, 2018.
[2]
Restricted cash represents government grants received but pending
final clearance.
|
Prepayments and Other Current Assets
As of December 31, 2018, the
balance of prepayment and other current assets was RMB64.7 million (US$9.4 million), compared with RMB51.6 million as of September 30, 2018. The balance as of
December 31, 2018 mainly
included: (i) the current portion of deferred expenses of
RMB15.4 million (US$2.2 million); (ii) receivables from
third party payment providers of RMB9.2
million (US$1.4 million);
(iii) deposit receivables of RMB1.7
million (US$0.3 million);
(iv) receivables of consideration from disposal of subsidiaries of
RMB4.3 million (US$0.6 million); (v) deductible value added
input tax of RMB12.6
million (US$1.8 million);
and (vi) other receivables of RMB21.5 million (US$3.1 million).
Business Outlook
The Company does not expect to issue any earnings forecast until
it receives clear instructions as to the resumption date of online
sports lottery sales from the Ministry of Finance.
Currency Convenience Translation
This announcement contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars were made at the exchange rate of
RMB6.8755 to US$1.00, as set forth in the H.10 statistical
release of the Federal Reserve Board on December 31, 2018, and
all translations from Renminbi to EUR were made at the exchange
rate of RMB7.8113 to
EUR1.00, which is the average of the
month-end exchange rates as set forth in the statistical release of
State Administration of Foreign Exchange at the end of each
month in 2018.
About 500.com Limited
500.com Limited (NYSE: WBAI) is a leading online sports lottery
service provider in China. The
Company offers a comprehensive and integrated suite of online
lottery services, information, user tools and virtual community
venues to its users. 500.com was among the first companies to
provide online lottery services in China, and is one of two entities that have
been approved by the Ministry of Finance to provide online lottery
sales services on behalf of the China Sports Lottery Administration
Center, which is the government authority that is in charge of the
issuance and sale of sports lottery products in China.
Safe Harbor Statements
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in 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," "target,"
"going forward," "outlook" and similar statements. Such statements
are based upon management's current expectations and current market
and operating conditions, and relate to events that involve known
or unknown risks, uncertainties and other factors, all of which are
difficult to predict and many of which are beyond the Company's
control, which may cause the Company's actual results, performance
or achievements to differ materially from those in the
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company 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 law.
About Non-GAAP Financial Measures
To supplement the Company's financial results presented in
accordance with U.S. GAAP, the Company uses non-GAAP financial
measures, which are adjusted from results based on U.S. GAAP to
exclude share-based compensation expenses in the Company's
consolidated affiliated entities. Reconciliations of non-GAAP
financial measures to U.S. GAAP financial measures are set forth in
table at the end of this release, which provide more details on the
non-GAAP financial measures.
Non-GAAP financial information is provided as additional
information to help investors compare business trends among
different reporting periods on a consistent basis and to enhance
investors' overall understanding of the historical and current
financial performance of the Company's continuing operations and
prospects for the future. Non-GAAP financial information should not
be considered a substitute for or superior to U.S. GAAP results. In
addition, calculations of this non-GAAP financial information may
be different from calculations used by other companies, and
therefore comparability may be limited.
For more information, please contact:
500.com Limited
ir@500wan.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
500.com
Limited
Condensed Consolidated Balance Sheets
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),
except for number of shares)
|
|
|
|
December 31,
2017
|
December 31,
2018
|
December 31,
2018
|
|
|
RMB
|
RMB
|
US$
|
|
|
Audited
|
Unaudited
|
Unaudited
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
487,266
|
435,133
|
63,287
|
Restricted
cash
|
|
1,238
|
1,254
|
182
|
Short-term
investments
|
|
100,000
|
100,000
|
14,544
|
Accounts
receivable
|
|
-
|
9
|
1
|
Prepayments
and other current assets
|
|
81,316
|
64,678
|
9,407
|
Current assets
for discontinued operations
|
|
67,202
|
-
|
-
|
Total current
assets
|
|
737,022
|
601,074
|
87,421
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
|
105,502
|
97,195
|
14,136
|
Intangible
assets, net
|
|
243,261
|
214,962
|
31,265
|
Deposits
|
|
5,750
|
5,152
|
749
|
Long-term
investments
|
|
452,073
|
194,375
|
28,271
|
Other
non-current assets
|
|
6,257
|
3,563
|
518
|
Goodwill
|
|
129,752
|
129,752
|
18,872
|
Non-current
assets for discontinued
operations
|
|
74,942
|
-
|
-
|
Total non-current
assets
|
|
1,017,537
|
644,999
|
93,811
|
|
|
|
|
|
TOTAL
ASSETS
|
|
1,754,559
|
1,246,073
|
181,232
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accrued payroll
and welfare payable
|
|
11,855
|
9,779
|
1,422
|
Accrued
expenses and other current liabilities
|
|
146,233
|
87,638
|
12,745
|
Income tax
payable
|
|
2,223
|
1,766
|
257
|
Current
liabilities for discontinued operations
|
|
15,626
|
-
|
-
|
Total current
liabilities
|
|
175,937
|
99,183
|
14,424
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
payables
|
|
27,785
|
4,196
|
610
|
Deferred tax
liabilities
|
|
6,754
|
7,744
|
1,126
|
Non-current
liabilities for discontinued
operations
|
|
12,721
|
-
|
-
|
Total non-current
liabilities
|
|
47,260
|
11,940
|
1,736
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
223,197
|
111,123
|
16,160
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
22,052
|
29,388
|
4,274
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
Class A
ordinary shares, par value
US$0.00005 per share, 700,000,000 shares
authorized as of December 31, 2017 and
December 31, 2018; 333,787,552 and
350,804,532 shares issued and outstanding
as of December 31, 2017 and December 31,
2018, respectively
|
|
115
|
121
|
18
|
Class B
ordinary shares, par value
US$0.00005 per share; 300,000,000 shares
authorized as of December 31, 2017 and
December 31, 2018; 74,400,299 and
74,400,299 shares issued and outstanding as
of December 31, 2017 and December 31,
2018, respectively
|
|
28
|
28
|
4
|
Additional
paid-in capital
|
|
2,295,111
|
2,431,924
|
353,709
|
Treasury
shares
|
|
(143,780)
|
(143,780)
|
(20,912)
|
Accumulated
deficit
|
|
(857,751)
|
(1,309,424)
|
(190,448)
|
Accumulated
other comprehensive income
|
|
116,051
|
139,062
|
20,226
|
Total 500.com
Limited shareholders' equity
|
|
1,409,774
|
1,117,931
|
162,597
|
Noncontrolling
interests
|
|
99,536
|
(12,369)
|
(1,799)
|
Total
shareholders' equity
|
|
1,509,310
|
1,105,562
|
160,798
|
|
|
|
|
|
TOTAL LIABILITIES,
NONCONTROLLING
INTEREST AND SHAREHOLDERS'
EQUITY
|
|
1,754,559
|
1,246,073
|
181,232
|
500.com
Limited
Condensed Consolidated Statements of Comprehensive Loss
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("US$"),
except for number of shares, per share (or ADS)
data)
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
December 31,
2017
|
|
September 30,
2018
|
|
December 31,
2018
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
December 31,
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
|
Audited
|
|
Unaudited
|
Unaudited
|
Net
Revenues
|
35,587
|
|
30,109
|
|
27,160
|
3,950
|
|
72,591
|
|
126,089
|
18,339
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
(18,085)
|
|
(18,468)
|
|
(20,590)
|
(2,995)
|
|
(38,216)
|
|
(80,017)
|
(11,638)
|
Sales and marketing
|
(23,674)
|
|
(26,591)
|
|
(22,846)
|
(3,323)
|
|
(63,295)
|
|
(92,465)
|
(13,448)
|
General and administrative
|
(61,918)
|
|
(73,290)
|
|
(64,004)
|
(9,309)
|
|
(224,320)
|
|
(251,384)
|
(36,562)
|
Service development expenses
|
(17,980)
|
|
(17,379)
|
|
(16,134)
|
(2,347)
|
|
(58,593)
|
|
(61,909)
|
(9,004)
|
Impairment of equity method investments
|
(28,781)
|
|
-
|
|
(149,896)
|
(21,801)
|
|
(28,781)
|
|
(149,896)
|
(21,801)
|
Total operating
expenses
|
(150,438)
|
|
(135,728)
|
|
(273,470)
|
(39,775)
|
|
(413,205)
|
|
(635,671)
|
(92,453)
|
Other operating income
|
597
|
|
5,167
|
|
2,044
|
297
|
|
1,203
|
|
12,638
|
1,838
|
Government grant
|
1,565
|
|
408
|
|
3,537
|
514
|
|
6,789
|
|
7,620
|
1,108
|
Other operating expenses
|
(30,112)
|
|
(235)
|
|
(4,460)
|
(649)
|
|
(34,690)
|
|
(5,060)
|
(736)
|
Operating loss
from continuing operations
|
(142,801)
|
|
(100,279)
|
|
(245,189)
|
(35,663)
|
|
(367,312)
|
|
(494,384)
|
(71,904)
|
Others, net
|
5,262
|
|
183
|
|
3
|
-
|
|
821
|
|
(43)
|
(6)
|
Interest income
|
4,072
|
|
3,811
|
|
3,719
|
541
|
|
20,032
|
|
15,308
|
2,226
|
Loss from equity method investments
|
(1,288)
|
|
(4,369)
|
|
(6,300)
|
(916)
|
|
(2,128)
|
|
(15,025)
|
(2,185)
|
Gain from disposal of a subsidiary
|
5,477
|
|
579
|
|
291
|
42
|
|
5,477
|
|
2,805
|
408
|
Changes in fair value of contingent considerations
|
(655)
|
|
-
|
|
-
|
-
|
|
(2,384)
|
|
-
|
-
|
Loss before income
tax
|
(129,933)
|
|
(100,075)
|
|
(247,476)
|
(35,996)
|
|
(345,494)
|
|
(491,339)
|
(71,461)
|
Income tax (expense) benefit
|
(1,633)
|
|
712
|
|
(2,719)
|
(395)
|
|
14,025
|
|
19,603
|
2,851
|
Net loss from
continuing operations
|
(131,566)
|
|
(99,363)
|
|
(250,195)
|
(36,391)
|
|
(331,469)
|
|
(471,736)
|
(68,610)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from discontinued operations, net of applicable
income taxes
|
(2,854)
|
|
-
|
|
-
|
-
|
|
15,327
|
|
2,183
|
316
|
Gain on disposal of discontinued operations, net of applicable
income taxes
|
-
|
|
-
|
|
-
|
-
|
|
-
|
|
10,160
|
1,478
|
Net (loss) income
from discontinued operations, net of applicable
income taxes
|
(2,854)
|
|
-
|
|
-
|
-
|
|
15,327
|
|
12,343
|
1,794
|
Net
loss
|
(134,420)
|
|
(99,363)
|
|
(250,195)
|
(36,391)
|
|
(316,142)
|
|
(459,393)
|
(66,816)
|
Net loss attributable to
noncontrolling interest from continuing operations
|
(3,101)
|
|
(2,865)
|
|
(2,472)
|
(360)
|
|
(6,734)
|
|
(8,820)
|
(1,283)
|
Net (loss) income
attributable to noncontrolling interest from discontinued
operations
|
(1,395)
|
|
-
|
|
-
|
-
|
|
7,689
|
|
1,099
|
161
|
Less: Net (loss) income
attributable to noncontrolling interests
|
(4,496)
|
|
(2,865)
|
|
(2,472)
|
(360)
|
|
955
|
|
(7,721)
|
(1,122)
|
Net loss
attributable to 500.com Limited
|
(129,924)
|
|
(96,498)
|
|
(247,723)
|
(36,031)
|
|
(317,097)
|
|
(451,672)
|
(65,694)
|
Other comprehensive
(loss) income
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation (loss) gain
|
(10,580)
|
|
30,437
|
|
(16,713)
|
(2,431)
|
|
(55,805)
|
|
23,011
|
3,347
|
Change in fair value of available for sale investment
|
21
|
|
-
|
|
-
|
-
|
|
(733)
|
|
-
|
-
|
Other
comprehensive (loss) income, net of tax
|
(10,559)
|
|
30,437
|
|
(16,713)
|
(2,431)
|
|
(56,538)
|
|
23,011
|
3,347
|
Comprehensive
loss
|
(144,979)
|
|
(68,926)
|
|
(266,908)
|
(38,822)
|
|
(372,680)
|
|
(436,382)
|
(63,469)
|
Less: Comprehensive (loss) income attributable to noncontrolling
interests
|
(4,289)
|
|
(3,914)
|
|
(3,311)
|
(482)
|
|
1,348
|
|
(9,047)
|
(1,316)
|
Comprehensive loss
attributable to 500.com Limited
|
(140,690)
|
|
(65,012)
|
|
(263,597)
|
(38,340)
|
|
(374,028)
|
|
(427,335)
|
(62,153)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
408,112,036
|
|
423,278,359
|
|
425,007,005
|
425,007,005
|
|
408,310,122
|
|
418,911,292
|
418,911,292
|
Diluted
|
408,112,036
|
|
423,278,359
|
|
425,007,005
|
425,007,005
|
|
408,310,122
|
|
418,911,292
|
418,911,292
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per share
attributable to 500.com Limited-Basic and
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing
operations
|
(0.31)
|
|
(0.23)
|
|
(0.61)
|
(0.09)
|
|
(0.81)
|
|
(1.13)
|
(0.16)
|
Net income from discontinued
operations
|
(0.01)
|
|
-
|
|
-
|
-
|
|
0.04
|
|
0.03
|
0.004
|
Net loss
|
(0.32)
|
|
(0.23)
|
|
(0.61)
|
(0.09)
|
|
(0.78)
|
|
(1.10)
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per
ADS* attributable to 500.com Limited-Basic and
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing
operations
|
(3.11)
|
|
(2.28)
|
|
(6.05)
|
(0.88)
|
|
(8.14)
|
|
(11.30)
|
(1.64)
|
Net income from discontinued
operations
|
(0.07)
|
|
-
|
|
-
|
-
|
|
0.38
|
|
0.29
|
0.04
|
Net loss
|
(3.18)
|
|
(2.28)
|
|
(6.05)
|
(0.88)
|
|
(7.77)
|
|
(11.01)
|
(1.60)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* American Depositary
Shares, which are traded on the NYSE. Each ADS represents ten Class
A ordinary shares of the Company.
|
500.com
Limited
Reconciliation of non-GAAP results of operations measures to the
nearest comparable GAAP measures
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("US$"),
except for number of shares, per share (or ADS)
data)
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
December 31,
2017
|
|
September 30,
2018
|
|
December 31,
2018
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
December 31,
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
|
Audited
|
|
Unaudited
|
Unaudited
|
Operating loss
from continuing operations
|
(142,801)
|
|
(100,279)
|
|
(245,189)
|
(35,663)
|
|
(367,312)
|
|
(494,384)
|
(71,904)
|
Adjustment for share-based compensation expenses
|
23,168
|
|
42,721
|
|
25,209
|
3,666
|
|
91,143
|
|
108,628
|
15,799
|
Adjusted operating
loss from continuing
operations (non-GAAP)
|
(119,633)
|
|
(57,558)
|
|
(219,980)
|
(31,997)
|
|
(276,169)
|
|
(385,756)
|
(56,105)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to 500.com Limited from continuing operations
|
(127,070)
|
|
(96,498)
|
|
(247,723)
|
(36,031)
|
|
(332,424)
|
|
(453,855)
|
(66,010)
|
Net (loss) income
attributable to 500.com Limited from
discontinued operations
|
(2,854)
|
|
-
|
|
-
|
-
|
|
15,327
|
|
2,183
|
316
|
Net loss
attributable to 500.com Limited
|
(129,924)
|
|
(96,498)
|
|
(247,723)
|
(36,031)
|
|
(317,097)
|
|
(451,672)
|
(65,694)
|
Adjustment for share-based compensation expenses
|
23,168
|
|
42,721
|
|
25,209
|
3,666
|
|
91,143
|
|
108,628
|
15,799
|
Adjusted net loss
attributable to 500.com Limited from
continuing operations (non-GAAP)
|
(103,902)
|
|
(53,777)
|
|
(222,514)
|
(32,365)
|
|
(241,281)
|
|
(345,227)
|
(50,211)
|
Adjusted net (loss)
income attributable to 500.com
Limited from discontinued operations (non-GAAP)
|
(2,854)
|
|
-
|
|
-
|
-
|
|
15,327
|
|
2,183
|
316
|
Adjusted net loss
attributable to 500.com Limited
(non-GAAP)
|
(106,756)
|
|
(53,777)
|
|
(222,514)
|
(32,365)
|
|
(225,954)
|
|
(343,044)
|
(49,895)
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per share
attributable to 500.com Limited
(non-GAAP)-Basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing
operations (non-GAAP)
|
(0.25)
|
|
(0.13)
|
|
(0.55)
|
(0.08)
|
|
(0.59)
|
|
(0.85)
|
(0.12)
|
Net (loss) income from
discontinued operations (non-GAAP)
|
(0.01)
|
|
-
|
|
-
|
-
|
|
0.04
|
|
0.01
|
-
|
Net loss
(non-GAAP)
|
(0.26)
|
|
(0.13)
|
|
(0.55)
|
(0.08)
|
|
(0.55)
|
|
(0.84)
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per
ADS* attributable to 500.com Limited
(non-GAAP)-Basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing
operations (non-GAAP)
|
(2.50)
|
|
(1.30)
|
|
(5.50)
|
(0.80)
|
|
(5.90)
|
|
(8.50)
|
(1.20)
|
Net income from discontinued
operations (non-GAAP)
|
(0.10)
|
|
-
|
|
-
|
-
|
|
0.40
|
|
0.10
|
-
|
Net loss
(non-GAAP)
|
(2.60)
|
|
(1.30)
|
|
(5.50)
|
(0.80)
|
|
(5.50)
|
|
(8.40)
|
(1.20)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
408,112,036
|
|
423,278,359
|
|
425,007,005
|
425,007,005
|
|
408,310,122
|
|
418,911,292
|
418,911,292
|
Diluted
|
408,112,036
|
|
423,278,359
|
|
425,007,005
|
425,007,005
|
|
408,310,122
|
|
418,911,292
|
418,911,292
|
|
|
|
|
|
|
|
|
|
|
|
|
* American Depositary
Shares, which are traded on the NYSE. Each ADS represents ten Class
A ordinary shares of the Company.
|
View original
content:http://www.prnewswire.com/news-releases/500com-limited-announces-unaudited-financial-results-for-the-fourth-quarter-and-full-year-ended-december-31-2018-300799069.html
SOURCE 500.com Limited