SHENZHEN, China, Feb. 27, 2020 /PRNewswire/ -- 500.com Limited
(NYSE: WBAI) ("500.com," "the Company," "we," "us," "our company,"
or "our"), 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, 2019.
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.
Temporary Suspension of Operations in Sweden
The Multi Group ("TMG"), a Malta-based subsidiary of the Company, has
temporarily suspended its operations in Sweden as TMG did not complete the renewal of
its e-Gaming license before it expired. The Company has promptly
issued 6-K report on January 13, 2020
and provided information update through 6-K report on February 20, 2020. TMG has submitted all the
application materials and is in close communication with
Sweden's eGaming regulatory
authority to complete the renewal process as quickly as possible.
The Company's revenues during the first quarter of 2020 have been
materially and adversely impacted by the temporary suspension of
TMG's operations in Sweden.
Revenue generated by TMG accounted for approximately 89.7% of the
Company's total net revenues during the fiscal year ended
December 31, 2019, of which
approximately 61.3% was generated from Sweden.
Fourth Quarter
2019 Highlights
- Net revenues were RMB8.6 million
(US$1.2 million), compared with net
revenue of RMB9.8 million for the
third quarter of 2019, and net revenue of RMB27.2 million for the fourth quarter of
2018.
- Operating loss was RMB298.7
million (US$42.9 million),
compared with operating loss of RMB98.4
million for the third quarter of 2019, and operating loss of
RMB95.3 million for the fourth
quarter of 2018.
- Non-GAAP[1] operating loss was RMB60.1 million (US$8.6
million), compared with non-GAAP operating loss of
RMB52.3 million for the third quarter
of 2019, and non-GAAP operating loss of RMB70.1 million for the fourth quarter of
2018.
- Net loss attributable to 500.com was RMB307.9 million (US$44.2
million), compared with net loss attributable to 500.com of
RMB95.8 million for the third quarter
of 2019, and net loss attributable to 500.com of RMB247.7 million for the fourth quarter of
2018.
- Non-GAAP net loss attributable to 500.com was RMB64.5 million (US$9.3
million), compared with non-GAAP net loss attributable to
500.com of RMB49.7 million for the
third quarter of 2019, and non-GAAP net loss attributable to
500.com of RMB93.2 million for the
fourth quarter of 2018.
- Basic and diluted losses per ADS were RMB7.16 (US$1.03).
- Non-GAAP basic and diluted losses per ADS were RMB1.50 (US$0.22).
[1]
Non-GAAP financial measures exclude the impact of share-based
compensation expenses, impairment of
acquired intangible assets, impairment of goodwill, impairment of
equity investments and deferred tax benefit
relating to valuation allowance. 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 2019 Highlights for Continuing
Operations
- Net revenues were RMB39.7 million
(US$5.7 million), compared with net
revenues of RMB126.1 million for full
year 2018.
- Operating loss was RMB634.4
million (US$91.1 million),
compared with operating loss of RMB344.5
million for full year 2018.
- Non-GAAP operating loss was RMB243.6
million (US$35.0 million),
compared with non-GAAP operating loss of RMB235.9 million for full year 2018.
- Net loss attributable to 500.com was RMB636.4 million (US$91.4
million), compared with net loss attributable to 500.com of
RMB462.9 million for full year
2018.
- Non-GAAP net loss attributable to 500.com was RMB240.8 million (US$34.6
million), compared with non-GAAP net loss attributable to
500.com of RMB225.0 million for full
year 2018.
- Basic and diluted losses per ADS were RMB14.85 (US$2.13).
- Non-GAAP basic and diluted losses per ADS were RMB5.62 (US$0.81).
Fourth Quarter 2019 Financial
Results
Net Revenues
Net revenues were RMB8.6 million
(US$1.2 million) for the fourth
quarter of 2019, representing a decrease of RMB18.6 million or 68.4% from RMB27.2 million for the fourth quarter of 2018
and a decrease of RMB1.2 million or
12.2% from RMB9.8 million for
the third quarter of 2019. Net revenues during the fourth
quarter of 2019 primarily consisted of RMB8.5 million (EUR1.1
million) in revenue contribution from the Company's
online lottery betting and online casino in Europe through TMG, which accounted for 98.8%
of total net revenues. The year-over-year decrease was mainly
attributable to a decrease of RMB13.8
million associated with TMG's website migration in
connection with the conversion of its Swedish license at the
beginning of 2019 which required users to re-register their
accounts and resulted in a decrease in users, and a decrease
of RMB4.8 million associated with the
ceased operations of sports information services in China in March
2019.
Operating Expenses
Operating expenses were RMB84.1
million (US$12.1 million) for
the fourth quarter of 2019, representing a decrease of RMB39.5 million or 32.0% from RMB123.6 million for the fourth quarter of
2018, and an increase of RMB4.9
million or 6.2% from RMB79.2 million for the third quarter of
2019. The year-over-year decrease was mainly due to a decrease
of RMB10.0 million in share-based
compensation expenses associated with share options granted to the
Company's employees, a decrease of RMB8.7
million in marketing and promotional expenses relating to a
change in TMG's marketing strategy, a decrease of RMB7.5 million in expenses for employees, a
decrease of RMB4.4 million in
consulting expenses, a decrease of RMB3.2
million in travelling expenses, a decrease of RMB3.2 million in platform service costs for TMG
associated with its reduction in online lottery and online casino
operations, a decrease of RMB2.5
million in lottery insurance costs, a decrease of
RMB1.5 million in depreciation and
amortization associated with leasehold improvements, a decrease of
RMB1.4 million in account handling
expenses, a decrease of RMB1.0
million in rental expenses and a decrease of RMB0.8 million in server hosting
costs, which were partially offset by an increase of
RMB5.9 million in bad debt provision
of receivables. The sequential increase was mainly due to an
increase of RMB5.7 million in bad
debt provision of receivables and an increase of RMB4.7 million in expenses for employees, which
were partially offset by a decrease of RMB1.4 million in platform service costs for TMG
associated with its reduction in online lottery and online casino
operations, a decrease of RMB1.1
million in lottery insurance costs, a decrease of
RMB1.1 million in rental expenses, a
decrease of RMB0.7 million
in depreciation associated with physical sales
terminals and a decrease of RMB0.7
million in regulatory and compliance fees.
Cost of services was RMB12.2 million (US$1.8 million) for the fourth quarter of
2019, representing a decrease of RMB8.4
million or 40.8% from RMB20.6 million for the fourth quarter
of 2018, and a decrease of RMB3.9
million or 24.2% from RMB16.1 million for
the third quarter of 2019. The year-over-year decrease
was mainly attributable to a decrease of RMB3.2 million in platform service costs for TMG
associated with its reduction in online lottery and online casino
operations, a decrease of RMB2.5
million in lottery insurance costs, a decrease of
RMB1.4 million in account handling
expenses and a decrease of RMB0.8
million in server hosting costs. The sequential decrease was
mainly due to a decrease of RMB1.4
million in platform service costs for TMG associated with
its reduction in online lottery and online casino operations, a
decrease of RMB1.1 million in lottery
insurance costs, a decrease of RMB0.7
million in regulatory and compliance fees and a decrease of
RMB0.7 million in depreciation
associated with physical sales terminals.
Sales and marketing expenses were RMB9.1 million (US$1.3 million) for the fourth quarter of
2019, representing a decrease of RMB13.7
million or 60.1% from RMB22.8 million for
the fourth quarter of 2018, and a slight increase of
RMB0.1 million or 1.1% from
RMB9.0 million for the third quarter
of 2019. The year-over-year decrease was mainly attributable
to a decrease of RMB8.7 million in
marketing and promotional expenses relating to a change in TMG's
marketing strategy, a decrease of RMB2.5
million in expenses for employees, a decrease of
RMB1.3 million in share-based
compensation expenses associated with share options granted to the
Company's employees and a decrease of RMB0.6
million in travelling expenses.
General and administrative expenses were RMB50.9 million (US$7.3
million) for the fourth quarter of 2019, representing a
decrease of RMB13.1 million or
20.5% from RMB64.0 million for
the fourth quarter of 2018, and an increase of RMB7.8 million or 18.1% from RMB43.1 million for the third quarter
of 2019. The year-over-year decrease was mainly due to a decrease
of RMB6.5 million in share-based
compensation expenses associated with share options granted to the
Company's employees, a decrease of RMB4.2 million in consulting expenses, a decrease
of RMB3.8 million in expenses for
employees, a decrease of RMB2.4
million in travelling expenses and a decrease of
RMB1.3 million in depreciation
and amortization associated with leasehold improvements, which were
partially offset by an increase of RMB5.9
million in bad debt provision of receivables. The sequential
increase was mainly due to an increase of RMB5.7 million in bad debt provision of
receivables and an increase of RMB2.4
million in expenses for employees, which were partially
offset by a decrease of RMB0.5
million in rental expenses.
Service development expenses were RMB11.9 million (US$1.7 million) for the fourth quarter of 2019,
representing a decrease of RMB4.2
million or 26.1% from RMB16.1
million for the fourth quarter of 2018, and a slight
increase of RMB0.8 million or
7.2% from RMB11.1 million
for the third quarter of 2019. The year-over-year decrease was
mainly due to a decrease of RMB2.2
million in share-based compensation expenses associated with
share options granted to the Company's employees, a decrease of
RMB1.2 million in expenses for
employees and a decrease of RMB0.6
million in rental expenses. The sequential increase was
mainly due to an increase of RMB1.7
million in expenses for employees, which was partially
offset by a decrease of RMB0.6
million in rental expenses.
Impairments of Goodwill
and Acquired Intangible assets
The impairments of goodwill and acquired intangible assets were
related to the Company's acquisition of TMG, which were triggered
by the TMG's temporary suspension of operations in Sweden.
Impairment of goodwill was RMB41.6
million (US$6.0 million) for
the fourth quarter of 2019. Impairment of goodwill was RMB30.9 million for the third quarter of 2019 and
there was no impairment of goodwill for the fourth quarter of
2018.
Impairment of acquired intangible assets was RMB181.8 million (US$26.1
million) for the fourth quarter of 2019. There was no
impairment of acquired intangible assets for the fourth quarter of
2018 and for the third quarter of 2019.
Operating Loss
Operating loss was RMB298.7
million (US$42.9 million) for
the fourth quarter of 2019, compared with operating loss of
RMB95.3 million for
the fourth quarter of 2018, and operating loss of
RMB98.4 million for the
third quarter of 2019. The year-over-year increase was mainly
due to an impairment provision of RMB181.8 million provided for
acquired intangible assets and an impairment provision of
RMB41.6 million provided for goodwill
during the fourth quarter of 2019, while no such impairment
provision was recorded for the fourth quarter of 2018. The
sequential increase was mainly due to an impairment provision of
RMB181.8 million provided for
acquired intangible assets and an impairment provision of
RMB41.6 million provided for goodwill
during the fourth quarter of 2019, compared with an impairment
provision of RMB30.9 million provided
for goodwill during the third quarter of 2019.
Non-GAAP operating loss was RMB60.1
million (US$8.6 million) for
the fourth quarter of 2019, compared with non-GAAP operating
loss of RMB70.1 million for
the fourth quarter of 2018, and non-GAAP operating loss
of RMB52.3 million for the
third quarter of 2019.
Net Loss Attributable to
500.com
Net loss attributable to 500.com was RMB307.9 million (US$44.2 million) for the fourth quarter of 2019,
compared with net loss attributable to 500.com of RMB247.7 million for
the fourth quarter of 2018, and net loss attributable to
500.com of RMB95.8 million for
the third quarter of 2019. The year-over-year increase was
mainly due to an impairment provision of RMB181.8 million provided for
acquired intangible assets, an impairment provision of
RMB41.6 million provided for
goodwill and an impairment provision of RMB12.4 million provided for long-term investment
during the fourth quarter of 2019, compared with an impairment
provision of RMB149.9 million
provided for long-term investment during the fourth quarter of
2018, a decrease of RMB18.6 million
in revenue, which was partially offset by a decrease in operating
expenses of RMB39.5 million. The
sequential increase was mainly due to an impairment provision of
RMB181.8 million provided for
acquired intangible assets and an impairment provision of
RMB41.6 million provided for goodwill
during the fourth quarter of 2019, compared with an impairment
provision of RMB30.9 million provided
for goodwill during the third quarter of 2019, and an impairment
provision of RMB12.4 million provided
for long-term investment during the fourth quarter of 2019, while
no such impairment provision provided for the third quarter of
2019.
Non-GAAP net loss attributable to 500.com was RMB64.5 million (US$9.3
million) for the fourth quarter of 2019, compared with
non-GAAP net loss attributable to 500.com of RMB93.2 million for the fourth quarter
of 2018, and non-GAAP net loss attributable to 500.com of
RMB49.7 million for
the third quarter of 2019.
Full Year 2019 Financial
Results for Continuing Operations
Net revenues for full year 2019 were RMB39.7 million (US$5.7 million), representing a
decrease of RMB 86.4 million or
68.5% from RMB126.1 million for full
year 2018. The year-over-year decrease was mainly attributable to
TMG's website migration in connection with the conversion of its
Swedish license at the beginning of 2019 which required users
to re-register their accounts and resulted in a decrease of
users, and the ceased operation of sports information services in
China in March 2019.
Operating loss for full year 2019 was RMB634.4 million (US$91.1 million), including the impairment
of acquired intangible assets of RMB181.8 million and the impairment of goodwill
of RMB129.8 million, representing
an increase of RMB289.9 million or 84.2%
from RMB344.5 million for full year 2018.
Non-GAAP operating loss for full year 2019 was RMB243.6 million (US$35.0
million), representing an increase of RMB7.7 million or 3.3% from RMB235.9 million for full year 2018.
Net loss attributable to 500.com for full year 2019 was
RMB636.4 million (US$91.4 million), representing an
increase of RMB173.5 million or
37.5% from RMB462.9 million for full
year 2018.
Non-GAAP net loss attributable to 500.com for full year 2019 was
RMB240.8 million (US$34.6 million), representing an
increase of RMB15.8 million or
7.0% from RMB225.0 million for full
year 2018.
Cash and Cash Equivalents, Restricted Cash, Time
Deposits and Short-term Investments
As of December 31, 2019, the
Company had cash and cash equivalents of RMB361.5 million (US$51.9 million), restricted
cash[2] of RMB4.3 million (US$0.6 million) and time deposits[3]
of RMB23.8 million (US$3.4 million), compared with cash and cash
equivalents of RMB242.7 million,
restricted cash of RMB4.2
million and time deposits of RMB165.4 million as of September 30, 2019.
[2]
Restricted cash represents: (i) government grants received but
pending final clearance; and (ii) deposits in
Sata bank in Malta yet to be withdrawn.
|
[3] Time
deposits represent deposits in commercial banks with original
maturities of greater than three months
but less than a
year.
|
Prepayments and Other Current Assets
As of December 31, 2019, the balance of prepayment and
other current assets was RMB38.7 million (US$5.6 million), compared with RMB53.5 million as of September 30, 2019. The balance as of
December 31, 2019 mainly
included: (i) the current portion of deferred expenses of
RMB2.7 million (US$0.4 million); (ii) receivables from
third party payment providers of RMB5.2
million (US$0.7 million);
(iii) deposit receivables of RMB1.2
million (US$0.2 million);
(iv) receivables of consideration from disposal of subsidiaries of
RMB4.3 million (US$0.6 million); (v) deductible value added
input tax of RMB11.6
million (US$1.7 million);
and (vi) other receivables of RMB13.7 million (US$2.0 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
RMB6.9618 to US$1.00, as set forth in the H.10 statistical
release of the Federal Reserve Board on December 31, 2019, and
all translations from Renminbi to Euros were made at the exchange
rate of RMB7.7181 to
EUR1.00, which was 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 2019.
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,
2018
|
December 31,
2019
|
December 31,
2019
|
|
|
RMB
|
RMB
|
US$
|
|
|
Audited
|
Unaudited
|
Unaudited
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
435,133
|
361,520
|
51,929
|
Restricted
cash
|
|
1,254
|
4,276
|
614
|
Time
deposits
|
|
-
|
23,849
|
3,426
|
Short-term
investments
|
|
100,000
|
-
|
-
|
Amounts due from
related parties
|
|
-
|
10,401
|
1,494
|
Prepayments and other
current assets
|
|
65,198
|
38,671
|
5,555
|
Total current
assets
|
|
601,585
|
438,717
|
63,018
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
|
97,195
|
64,112
|
9,209
|
Intangible assets,
net
|
|
214,962
|
4,505
|
647
|
Deposits
|
|
5,152
|
5,381
|
773
|
Long-term
investments
|
|
194,375
|
163,546
|
23,492
|
Right-of-use
assets
|
|
|
36,607
|
5,258
|
Other non-current
assets
|
|
3,563
|
1,894
|
272
|
Goodwill
|
|
129,752
|
-
|
-
|
Total non-current
assets
|
|
644,999
|
276,045
|
39,651
|
|
|
|
|
|
TOTAL
ASSETS
|
|
1,246,584
|
714,762
|
102,669
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accrued payroll
and welfare payable
|
|
9,779
|
6,879
|
988
|
Accrued
expenses and other current liabilities
|
|
88,149
|
51,398
|
7,383
|
Income tax
payable
|
|
1,766
|
2,213
|
318
|
Operating lease
liabilities - current
|
|
-
|
16,672
|
2,395
|
Total current
liabilities
|
|
99,694
|
77,162
|
11,084
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
payables
|
|
4,196
|
2,965
|
426
|
Deferred tax
liabilities
|
|
7,744
|
59
|
8
|
Operating lease
liabilities - non-current
|
|
-
|
31,675
|
4,550
|
Total non-current
liabilities
|
|
11,940
|
34,699
|
4,984
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
111,634
|
111,861
|
16,068
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
29,388
|
29,388
|
4,221
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
Class A ordinary
shares, par value US$0.00005
per share, 700,000,000 shares authorized as of
December 31, 2018 and December 31, 2019;
350,804,532 and 420,001,792 shares issued and
outstanding as of December 31, 2018 and
December 31, 2019, respectively
|
|
121
|
145
|
21
|
Class B ordinary
shares, par value US$0.00005
per share; 300,000,000 shares authorized as of
December 31, 2018 and December 31, 2019;
74,400,299 and 10,000,099 shares issued and
outstanding as of December 31, 2018 and
December 31, 2019, respectively
|
|
28
|
6
|
1
|
Additional paid-in
capital
|
|
2,431,924
|
2,532,754
|
363,807
|
Treasury
shares
|
|
(143,780)
|
(143,780)
|
(20,653)
|
Accumulated
deficit
|
|
(1,309,424)
|
(1,945,814)
|
(279,499)
|
Accumulated other
comprehensive income
|
|
137,736
|
144,263
|
20,722
|
Total 500.com
Limited shareholders' equity
|
|
1,116,605
|
587,574
|
84,399
|
Noncontrolling
interests
|
|
(11,043)
|
(14,061)
|
(2,019)
|
Total
shareholders' equity
|
|
1,105,562
|
573,513
|
82,380
|
|
|
|
|
|
TOTAL LIABILITIES,
NONCONTROLLING
INTEREST AND SHAREHOLDERS' EQUITY
|
|
1,246,584
|
714,762
|
102,669
|
500.com
Limited
Condensed Consolidated Statements of Comprehensive Loss
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("US$"),
except for number of shares, per share (or ADS)
data)
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December 31,
2018
|
|
September 30,
2019
|
|
December 31,
2019
|
December 31,
2019
|
|
December 31,
2018
|
|
December 31,
2019
|
December 31,
2019
|
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
|
Audited
|
|
Unaudited
|
Unaudited
|
Net
Revenues
|
|
27,160
|
|
9,763
|
|
8,585
|
1,233
|
|
126,089
|
|
39,688
|
5,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
(20,590)
|
|
(16,096)
|
|
(12,214)
|
(1,754)
|
|
(80,017)
|
|
(59,410)
|
(8,534)
|
Sales and marketing expenses
|
|
(22,846)
|
|
(8,980)
|
|
(9,133)
|
(1,312)
|
|
(92,465)
|
|
(42,445)
|
(6,097)
|
General and administrative expenses
|
|
(64,005)
|
|
(43,080)
|
|
(50,870)
|
(7,307)
|
|
(251,384)
|
|
(215,367)
|
(30,936)
|
Service development expenses
|
|
(16,135)
|
|
(11,072)
|
|
(11,930)
|
(1,714)
|
|
(61,909)
|
|
(48,614)
|
(6,983)
|
Total operating
expenses
|
|
(123,576)
|
|
(79,228)
|
|
(84,147)
|
(12,087)
|
|
(485,775)
|
|
(365,836)
|
(52,550)
|
Other operating income
|
|
2,044
|
|
1,233
|
|
840
|
121
|
|
12,638
|
|
6,788
|
975
|
Government grant
|
|
3,537
|
|
264
|
|
218
|
31
|
|
7,620
|
|
3,504
|
503
|
Other operating expenses
|
|
(4,460)
|
|
465
|
|
(739)
|
(106)
|
|
(5,060)
|
|
(6,994)
|
(1,005)
|
Impairment of intangible assets
|
|
-
|
|
-
|
|
(181,845)
|
(26,120)
|
|
-
|
|
(181,845)
|
(26,120)
|
Impairment of goodwill
|
|
-
|
|
(30,916)
|
|
(41,618)
|
(5,978)
|
|
-
|
|
(129,752)
|
(18,638)
|
Operating loss
from continuing operations
|
|
(95,295)
|
|
(98,419)
|
|
(298,706)
|
(42,906)
|
|
(344,488)
|
|
(634,447)
|
(91,134)
|
Other income (expenses), net
|
|
3
|
|
(1)
|
|
66
|
9
|
|
(43)
|
|
454
|
65
|
Interest income
|
|
3,719
|
|
3,289
|
|
3,042
|
437
|
|
15,308
|
|
13,448
|
1,932
|
Loss from equity method investments
|
|
(6,300)
|
|
(699)
|
|
(6,495)
|
(933)
|
|
(15,025)
|
|
(14,105)
|
(2,026)
|
Impairment of equity method investments
|
|
(149,896)
|
|
-
|
|
(12,400)
|
(1,781)
|
|
(149,896)
|
|
(12,400)
|
(1,781)
|
Gain from disposal of a subsidiary
|
|
290
|
|
-
|
|
-
|
-
|
|
2,805
|
|
-
|
-
|
Loss before income
tax
|
|
(247,479)
|
|
(95,830)
|
|
(314,493)
|
(45,174)
|
|
(491,339)
|
|
(647,050)
|
(92,944)
|
Income tax (expense) benefit
|
|
(2,719)
|
|
230
|
|
6,972
|
1,001
|
|
19,602
|
|
7,642
|
1,098
|
Net loss from
continuing operations
|
|
(250,198)
|
|
(95,600)
|
|
(307,521)
|
(44,173)
|
|
(471,737)
|
|
(639,408)
|
(91,846)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of applicable income
taxes
|
|
-
|
|
-
|
|
-
|
-
|
|
2,183
|
|
-
|
-
|
Gain on disposal of discontinued operations, net of applicable
income taxes
|
|
-
|
|
-
|
|
-
|
-
|
|
10,160
|
|
-
|
-
|
Net income from
discontinued operations, net of applicable
income taxes
|
|
-
|
|
-
|
|
-
|
-
|
|
12,343
|
|
-
|
-
|
Net
loss
|
|
(250,198)
|
|
(95,600)
|
|
(307,521)
|
(44,173)
|
|
(459,394)
|
|
(639,408)
|
(91,846)
|
Less: Net (loss) income attributable to noncontrolling interest
and
Redeemable noncontrollling interest from continuing
operations
|
|
(2,472)
|
|
189
|
|
347
|
50
|
|
(8,820)
|
|
(3,018)
|
(434)
|
Less: Net income attributable to noncontrolling interest
from
discontinued operations
|
|
-
|
|
-
|
|
-
|
-
|
|
1,099
|
|
-
|
-
|
Net (loss) income attributable to noncontrolling
interests
|
|
(1,472)
|
|
189
|
|
347
|
50
|
|
(4,486)
|
|
(3,018)
|
(434)
|
Net loss attributable to Redeemable noncontrolling
interests
|
|
(1,000)
|
|
-
|
|
-
|
-
|
|
(3,235)
|
|
-
|
-
|
Net loss
attributable to 500.com Limited
|
|
(247,726)
|
|
(95,789)
|
|
(307,868)
|
(44,223)
|
|
(451,673)
|
|
(636,390)
|
(91,412)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation (loss) gain
|
|
(16,701)
|
|
10,195
|
|
(2,658)
|
(382)
|
|
23,023
|
|
6,527
|
938
|
Other
comprehensive (loss) income, net of tax
|
|
(16,701)
|
|
10,195
|
|
(2,658)
|
(382)
|
|
23,023
|
|
6,527
|
938
|
Comprehensive
loss
|
|
(266,899)
|
|
(85,405)
|
|
(310,179)
|
(44,555)
|
|
(436,371)
|
|
(632,881)
|
(90,908)
|
Less: Comprehensive (loss) income attributable to
noncontrolling
interests and Redeemable nontrolling interest
|
|
(647)
|
|
189
|
|
347
|
50
|
|
(6,383)
|
|
(3,018)
|
(434)
|
Comprehensive loss
attributable to 500.com Limited
|
|
(266,252)
|
|
(85,594)
|
|
(310,526)
|
(44,605)
|
|
(429,988)
|
|
(629,863)
|
(90,474)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
425,007,005
|
|
429,912,365
|
|
429,982,761
|
429,982,761
|
|
418,911,292
|
|
428,586,305
|
428,586,305
|
Diluted
|
|
425,007,005
|
|
429,912,365
|
|
429,982,761
|
429,982,761
|
|
418,911,292
|
|
428,586,305
|
428,586,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per share
attributable to 500.com Limited-Basic and
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations
|
|
(0.61)
|
|
(0.22)
|
|
(0.72)
|
(0.10)
|
|
(1.13)
|
|
(1.48)
|
(0.21)
|
Net income from discontinued operations
|
|
-
|
|
-
|
|
-
|
-
|
|
0.03
|
|
-
|
-
|
Net loss
|
|
(0.61)
|
|
(0.22)
|
|
(0.72)
|
(0.10)
|
|
(1.10)
|
|
(1.48)
|
(0.21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per
ADS* attributable to 500.com Limited-Basic and
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations
|
|
(6.05)
|
|
(2.23)
|
|
(7.16)
|
(1.03)
|
|
(11.28)
|
|
(14.85)
|
(2.13)
|
Net income from discontinued operations
|
|
-
|
|
-
|
|
-
|
-
|
|
0.27
|
|
-
|
-
|
Net loss
|
|
(6.05)
|
|
(2.23)
|
|
(7.16)
|
(1.03)
|
|
(11.01)
|
|
(14.85)
|
(2.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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$"),
except for number of shares, per share (or ADS)
data)
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December 31,
2018
|
|
September 30,
2019
|
|
December 31,
2019
|
December 31,
2019
|
|
December 31,
2018
|
|
December 31,
2019
|
December 31,
2019
|
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
|
Audited
|
|
Unaudited
|
Unaudited
|
Operating loss
from continuing operations
|
|
(95,295)
|
|
(98,419)
|
|
(298,706)
|
(42,906)
|
|
(344,488)
|
|
(634,447)
|
(91,134)
|
Adjustment for share-based compensation expenses
|
|
25,209
|
|
15,175
|
|
15,181
|
2,181
|
|
108,628
|
|
79,275
|
11,387
|
Adjustment for Impairment of intangible assets.
|
|
|
|
-
|
|
181,845
|
26,120
|
|
-
|
|
181,845
|
26,120
|
Adjustment for impairment of goodwill
|
|
|
|
30,916
|
|
41,618
|
5,978
|
|
-
|
|
129,752
|
18,638
|
Adjusted operating
loss from continuing operations (non-
GAAP)
|
|
(70,086)
|
|
(52,328)
|
|
(60,062)
|
(8,627)
|
|
(235,860)
|
|
(243,575)
|
(34,989)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to 500.com Limited from continuing
operations
|
|
(247,726)
|
|
(95,789)
|
|
(307,868)
|
(44,223)
|
|
(462,917)
|
|
(636,390)
|
(91,412)
|
Net income
attributable to 500.com Limited from discontinued
operations
|
|
-
|
|
-
|
|
-
|
-
|
|
11,244
|
|
-
|
-
|
Net loss
attributable to 500.com Limited
|
|
(247,726)
|
|
(95,789)
|
|
(307,868)
|
(44,223)
|
|
(451,673)
|
|
(636,390)
|
(91,412)
|
Adjustment for share-based compensation expenses
|
|
25,209
|
|
15,175
|
|
15,181
|
2,181
|
|
108,628
|
|
79,275
|
11,387
|
Adjustment for Impairment of intangible assets.
|
|
-
|
|
-
|
|
181,845
|
26,120
|
|
-
|
|
181,845
|
26,120
|
Adjustment for impairment of goodwill
|
|
-
|
|
30,916
|
|
41,618
|
5,978
|
|
-
|
|
129,752
|
18,638
|
Adjustment for Impairment of equity investments
|
|
149,896
|
|
-
|
|
12,400
|
1,781
|
|
149,896
|
|
12,400
|
1,781
|
Adjustment for deferred tax benefit relating to valuation
allowance
|
|
(20,617)
|
|
-
|
|
(7,669)
|
(1,102)
|
|
(20,617)
|
|
(7,669)
|
(1,102)
|
Adjusted net loss
attributable to 500.com Limited from continuing
operations (non-GAAP)
|
|
(93,238)
|
|
(49,698)
|
|
(64,493)
|
(9,265)
|
|
(225,010)
|
|
(240,787)
|
(34,588)
|
Adjusted net income
attributable to 500.com Limited from
discontinued operations (non-GAAP)
|
|
-
|
|
-
|
|
-
|
-
|
|
11,244
|
|
-
|
-
|
Adjusted net loss
attributable to 500.com Limited (non-GAAP)
|
|
(93,238)
|
|
(49,698)
|
|
(64,493)
|
(9,265)
|
|
(213,766)
|
|
(240,787)
|
(34,588)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per share
attributable to 500.com Limited (non-GAAP)-
Basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations (non-GAAP)
|
|
(0.22)
|
|
(0.12)
|
|
(0.15)
|
(0.02)
|
|
(0.54)
|
|
(0.56)
|
(0.08)
|
Net income from discontinued operations (non-GAAP)
|
|
-
|
|
-
|
|
-
|
-
|
|
0.03
|
|
-
|
-
|
Net loss (non-GAAP)
|
|
(0.22)
|
|
(0.12)
|
|
(0.15)
|
(0.02)
|
|
(0.51)
|
|
(0.56)
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses per
ADS* attributable to 500.com Limited (non-GAAP)-
Basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations (non-GAAP)
|
|
(2.19)
|
|
(1.16)
|
|
(1.50)
|
(0.22)
|
|
(5.37)
|
|
(5.62)
|
(0.81)
|
Net income from discontinued operations (non-GAAP)
|
|
-
|
|
-
|
|
-
|
-
|
|
0.27
|
|
-
|
-
|
Net loss (non-GAAP)
|
|
(2.19)
|
|
(1.16)
|
|
(1.50)
|
(0.22)
|
|
(5.10)
|
|
(5.62)
|
(0.81)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
425,007,005
|
|
429,912,365
|
|
429,982,761
|
429,982,761
|
|
418,911,292
|
|
428,586,305
|
428,586,305
|
Diluted
|
|
425,007,005
|
|
429,912,365
|
|
429,982,761
|
429,982,761
|
|
418,911,292
|
|
428,586,305
|
428,586,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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-31-2019-301012808.html
SOURCE 500.com Limited