SHENZHEN, China, Nov. 20, 2020 /PRNewswire/ -- 500.com Limited
(NYSE: WBAI) ("500.com," "the Company," "we," "us," "our company,"
or "our"), an online sports lottery service provider in
China, today reported its
unaudited financial results for the third quarter ended
September 30, 2020.
Resumption of Operations in Sweden
The Multi Group ("TMG"), a Malta-based subsidiary of the Company, has
temporarily suspended its operations in Sweden in early 2020 as TMG did not complete
the renewal of its e-Gaming license before it expired. The Company
promptly issued a Current Report on Form 6-K dated January 13, 2020 regarding this situation, and
provided an update through another Current Report on Form 6-K dated
February 20, 2020. After submitting
all the application materials and maintaining close communication
with Sweden's e-Gaming regulatory
authority, TMG completed the renewal process and resumed its
operations in Sweden in
September 2020. The Company's
revenues for the third quarter ended September 30, 2020 have been, and for the fiscal
year of 2020 are expected to be, 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 for the
fiscal year ended December 31, 2019,
of which approximately 61.3% was generated from Sweden.
Completion of Internal Investigation
On December 31, 2019, the Company
announced that its Board of Directors (the "Board") had formed a
Special Investigation Committee (the "SIC") to internally
investigate alleged illegal money transfers and the role played by
consultants following the arrest of one consultant (also a former
director of the Company's subsidiary in Japan) and two former consultants by the Tokyo
District Public Prosecutors Office. On January 16, 2020, the Company announced that the
SIC had retained King & Wood Mallesons LLP ("KWM") as its legal
advisor to assist with its internal investigation.
On October 7, 2020, the Company
announced that the SIC of the Company's Board completed its
internal investigation.
KWM presented its investigation review to SIC on October 7, 2020. Based on the findings and
analyses in KWM's review, the SIC has concluded that it did not
find a sufficient basis to establish a violation of the US Foreign
Corrupt Practices Act of 1977 in connection with the Company's
prior activities in Japan. The SIC
has also reviewed the Company's compliance policies, procedures and
internal controls in light of the suggestions from KWM. The Company
has updated such policies, procedures and internal controls based
on recommendations from the SIC, and will continue to enhance its
internal controls as appropriate.
Annual Report on Form 20-F for the Fiscal Year ended
December 31, 2019
The Company previously filed a Form 12b-25 with the SEC on
June 15, 2020 for late filing of its
Annual Report on Form 20-F for the fiscal year ended December 31, 2019 (the "2019 Annual Report"),
pursuant to which the 2019 Annual Report was due to be filed by
June 30, 2020. The Company expects to
file the 2019 Annual Report (i) upon completion of the previously
announced internal investigation being conducted by the SIC of the
Company's Board, with the assistance of KWM, (ii) once the
Company's financial statements for the fiscal year ended
December 31, 2019 are finalized,
(iii) once the Company has completed the assessment of the
effectiveness of its internal control over financial reporting as
of December 31, 2019, and (iv) once
the Company's independent registered public accounting firm has
completed its audit of financial statements and internal control
over financial reporting as of December 31,
2019.
The Company also reports that on July 1,
2020, the Company received an expected notice from New York
Stock Exchange ("NYSE") Regulation stating that the Company is not
in compliance with the NYSE's continued listing requirements under
the timely filing criteria pursuant to Section 802.01E of the NYSE
Listed Company Manual as a result of the Company's failure to
timely file the 2019 Annual Report with the SEC. As required by the
notice, (a) a representative of the Company contacted the NYSE on
July 1, 2020 to discuss the status of
the 2019 Annual Report, and (b) the Company is issuing this press
release, disclosing the status of the 2019 Annual Report, noting
the delay and the reason for the delay, as mentioned above. The
anticipated filing date of the 2019 Annual Report is not known at
this time.
NYSE Regulation notified the Company that the NYSE will closely
monitor the status of the Company's late filing and related public
disclosures for up to a six-month period from the due date of the
2019 Annual Report. If the Company fails to file its annual report
and any subsequent delayed filings within six months from the
filing due date, the NYSE may, in its sole discretion, allow the
Company's securities to trade for up to an additional six months
depending on specific circumstances, as outlined in Section 802.01E
of the NYSE Listed Company Manual.
The Company intends to meet the filing deadline of
six months from the filing due date of the 2019 Annual Report,
or December 31, 2020.
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.
Third Quarter
2020 Highlights
- Net revenues were RMB6.1 million
(US$0.9 million), compared with net
revenues of RMB3.6 million for the
second quarter of 2020, and net revenues of RMB9.8 million for the third quarter of
2019.
- Operating loss was RMB50.2
million (US$7.4 million),
compared with operating loss of RMB52.3
million for the second quarter of 2020, and operating loss
of RMB98.4 million for the third
quarter of 2019.
- Non-GAAP[1] operating loss was RMB37.6 million (US$5.5
million), compared with non-GAAP operating loss of
RMB33.7 million for the second
quarter of 2020, and non-GAAP operating loss of RMB52.3 million for the third quarter of
2019.
- Net loss attributable to 500.com was RMB44.0 million (US$6.5
million), compared with net loss attributable to 500.com of
RMB86.3 million for the second
quarter of 2020, and net loss attributable to 500.com of
RMB95.8 million for the third quarter
of 2019.
- Non-GAAP net loss attributable to 500.com was RMB31.6 million (US$4.7
million), compared with non-GAAP net loss attributable to
500.com of RMB34.0 million for the
second quarter of 2020, and non-GAAP net loss attributable to
500.com of RMB49.7 million for the
third quarter of 2019.
- Basic and diluted losses per ADS were RMB1.02 (US$0.15).
- Non-GAAP basic and diluted losses per ADS were RMB0.73 (US$0.11).
Third Quarter 2020 Financial
Results
Net Revenues
Net revenues were RMB6.1 million
(US$0.9 million) for the third
quarter of 2020, representing a decrease of RMB3.7 million or 37.8% from RMB9.8 million for the third quarter of 2019 and
an increase of RMB2.5 million or
69.4% from RMB3.6 million
for the second quarter of 2020. Net revenues during the
third quarter of 2020 primarily consisted of RMB3.3 million (EUR0.4
million) in revenue contribution from the Company's
online lottery betting and online casino in Europe through TMG, which accounted for 54.1%
of total net revenues. The year-over-year decrease was mainly
attributable to a decrease of RMB6.0
million resulting from the temporary suspension of
operations in Sweden in 2020,
which was partially offset by an increase of RMB2.8 million in sports information services in
China started in early 2020.
Operating Expenses
Operating expenses were RMB56.2
million (US$8.3 million) for
the third quarter of 2020, representing a decrease of RMB23.0 million or 29.0% from RMB79.2 million for the third quarter of
2019, and an increase of RMB1.1
million or 2.0% from RMB55.1 million for the second quarter of
2020. The year-over-year decrease was mainly due to a decrease
of RMB19.0 million in rental expenses
mainly resulting from the partial termination of office lease in
Shenzhen and the termination of
office leases in Hong Kong and
Japan due to closure of
subsidiaries' local offices , a decrease of RMB10.3 million in expenses for employees as a
result of decrease in headcount, a decrease of RMB6.8 million mainly in amortization associated
with full impairment of acquired intangible assets in 2019, a
decrease of RMB2.6 million in
share-based compensation expenses associated with share options
granted to the Company's employees, a decrease of RMB2.2 million in travelling expenses, a decrease
of RMB1.3 million in marketing and
promotional expenses relating to a change in TMG's marketing
strategy, a decrease of RMB1.2
million in office expenses, a decrease of RMB2.2 million in lottery insurance costs for TMG
associated with the temporary suspension of its online lottery and
online casino operations in Sweden, and a decrease of RMB1.7 million in platform service costs, which
were partially offset by an increase of RMB18.8 million mainly in depreciation associated
with leasehold improvements for the partial termination of office
lease in Shenzhen, an increase of
RMB4.4 million in consulting
expenses, and an increase of RMB1.6
million for bad debt provision of receivables. The
sequential increase was mainly
due to an increase of RMB17.8 million
mainly in depreciation associated with leasehold improvements for
the partial termination of office lease in Shenzhen, an increase of RMB3.3 million in consulting expenses, and an
increase of RMB1.8 million for bad
debt provision of receivables, which were partially offset by a
decrease of RMB14.7 million in rental
expenses mainly resulting from the partial termination of office
lease in Shenzhen, a decrease of
RMB6.0 million in share-based
compensation expenses associated with share options granted to the
Company's employees, and a decrease of RMB0.6 million in lottery insurance costs for
TMG.
Cost of services was RMB3.8 million (US$0.6 million) for the third quarter of
2020, representing a decrease of RMB12.3
million or 76.4% from RMB16.1 million for the third quarter
of 2019, and a slight decrease of RMB0.8
million or 17.4% from RMB4.6 million for
the second quarter of 2020. The year-over-year decrease
was mainly attributable to a decrease of RMB6.8 million in amortization mainly associated
with full impairment of acquired intangible assets in 2019, a
decrease of RMB2.2 million in lottery
insurance costs for TMG associated with the temporary suspension of
its online lottery and online casino operations in Sweden, a decrease of RMB1.7 million in platform service costs, and a
decrease of RMB0.7 million in office
expenses. The sequential decrease was mainly attributable to a
decrease of RMB0.6 million in lottery
insurance costs for TMG.
Sales and marketing expenses were RMB4.2 million (US$0.6 million) for the third quarter of
2020, representing a decrease of RMB4.8
million or 53.3% from RMB9.0 million for
the third quarter of 2019, and a slight decrease of
RMB0.8 million or 16.0% from
RMB5.0 million for the second quarter
of 2020. The year-over-year decrease was mainly attributable
to a decrease of RMB2.8 million in
expenses for employees, a decrease of RMB1.3
million in marketing and promotional expenses relating to a
change in TMG's marketing strategy, and a decrease of
RMB0.5 million in travelling
expenses, which were partially offset by an increase of
RMB0.4 million in share-based
compensation expenses associated with share options granted to the
Company's employees. The sequential decrease was mainly due to
a decrease of RMB0.3 million in
share-based compensation expenses associated with share options
granted to the Company's employees.
General and administrative expenses were RMB46.4 million (US$6.8
million) for the third quarter of 2020, representing an
increase of RMB3.3 million or
7.7% from RMB43.1 million for
the third quarter of 2019, and an increase of RMB11.0 million or 31.1% from RMB35.4 million for the second quarter
of 2020. The year-over-year increase was mainly due to an increase
of RMB19.1 million mainly in
depreciation associated with leasehold improvements for the partial
termination of office lease in Shenzhen, an increase of RMB4.6 million in consulting expenses, and an
increase of RMB1.6 million for bad
debt provision of receivables, which were partially offset by a
decrease of RMB10.3 million in rental
expenses mainly resulting from the partial termination of office
lease in Shenzhen and the
termination of office leases in Hong
Kong and Japan due to
closure of the subsidiaries' local offices , a decrease of
RMB6.3 million in expenses for
employees, a decrease of RMB3.5
million in share-based compensation expenses associated with
share options granted to the Company's employees, and a
decrease of RMB1.7 million in
travelling expenses. The sequential increase was mainly due to an
increase of RMB18.2 million mainly in
depreciation associated with leasehold improvements for the partial
termination of office lease in Shenzhen, an increase of RMB3.4 million in consulting expenses, and an
increase of RMB1.8 million for bad
debt provision of receivables, which were partially offset by a
decrease of RMB7.4 million in rental
expenses mainly resulting from the partial termination of office
lease in Shenzhen and a decrease
of RMB4.6 million in share-based
compensation expenses associated with share options granted to the
Company's employees.
Service development expenses were RMB1.8 million (US$0.3 million) for the third quarter of 2020,
representing a decrease of RMB9.3
million or 83.8% from RMB11.1 million for the third quarter of
2019, and a decrease of RMB8.3
million or 82.2% from RMB10.1 million for the second quarter
of 2020. The year-over-year decrease was mainly due to a
decrease of RMB8.5 million in rental
expenses mainly resulting from the partial termination of office
lease in Shenzhen and a decrease of RMB1.2 million in expenses for employees, which
were partially offset by an increase of RMB0.5 million in share-based compensation
expenses associated with share options granted to the Company's
employees. The sequential decrease was mainly due to a decrease of
RMB7.2 million in rental expenses
mainly resulting from the partial termination of office lease in
Shenzhen and a decrease of
RMB1.1 million in share-based
compensation expenses associated with share options granted to the
Company's employees.
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 TMG's temporary suspension of its operations in Sweden.
Impairment of goodwill was RMB30.9
million for the third quarter of 2019. There was no
additional impairment of goodwill for the second and third quarters
of 2020 as the related goodwill and intangible assets were fully
impaired as of December 31, 2019.
Operating Loss
Operating loss was RMB50.2 million (US$7.4 million) for the third quarter of 2020,
compared with operating loss of RMB98.4 million for
the third quarter of 2019, and operating loss of
RMB52.3 million for the
second quarter of 2020. The year-over-year decrease was mainly
due to (i) an impairment provision of RMB30.9 million provided for goodwill during the
third quarter of 2019, there was no such impairment during the
third quarter of 2020, and (ii) a decrease of RMB23.0 million in operating expenses due to cost
reduction measures implemented by management, which was partially
offset by a decrease of RMB3.7
million in revenue.
Non-GAAP operating loss was RMB37.6
million (US$5.5 million) for
the third quarter of 2020, compared with non-GAAP operating
loss of RMB52.3 million for
the third quarter of 2019, and non-GAAP operating loss of
RMB33.7 million for the
second quarter of 2020. The year-over-year decrease was mainly
due to a decrease of RMB20.4 million
in Non-GAAP operating expenses due to cost reduction measures
implemented by management, which was partially offset by a decrease
of RMB3.7 million in revenue.
Net Loss Attributable to
500.com
Net loss attributable to 500.com was RMB44.0 million (US$6.5 million) for the third quarter of 2020,
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 RMB86.3 million for
the second quarter of 2020. The year-over-year decrease was
mainly due to (i) an impairment provision of RMB30.9 million provided for goodwill during the
third quarter of 2019, there was no such impairment for the third
quarter of 2020, and (ii) a decrease of RMB23.0 million in operating expenses due to cost
reduction measures implemented by management, which were partially
offset by a decrease of RMB3.7
million in revenue. The sequential decrease was mainly due to (i) an
impairment provision of RMB33.7
million provided for long-term investment in Loto
Interactive Limited during the second quarter of 2020, which was
calculated based on the last reported sale price on June 30, 2020, there was no such impairment for
the third quarter of 2020, (ii) a decrease of RMB6.0 million in share-based compensation
expenses associated with share options granted to the Company's
employees, and (iii) an increase of RMB2.5
million in revenue.
Non-GAAP net loss attributable to 500.com was RMB31.6 million (US$4.7
million) for the third quarter of 2020, 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
RMB34.0 million for
the second quarter of 2020. The year-over-year decrease
was mainly due to a decrease of RMB20.4
million in Non-GAAP operating expenses due to cost reduction
measures implemented by management, which was partially offset by a
decrease of RMB3.7 million in
revenue. The sequential decrease was mainly attributable to an
increase of RMB2.5 million in
revenue.
Cash and Cash Equivalents, Restricted Cash, Time
Deposits and Short-term Investments
As of September 30, 2020, the
Company had cash and cash equivalents of RMB278.4 million (US$41.0 million), restricted
cash[2] of RMB2.4 million (US$0.4 million), time deposit[3] of
RMB0.2 million and short-term
investment[4] of RMB50.0
million (US$7.4 million),
compared with cash and cash equivalents of RMB295.5 million, restricted cash of
RMB4.6 million, time deposits of
RMB0.2 million and short-term
investments of RMB50.0 million
as of June 30, 2020.
Prepayments and Other Current Assets
As of September 30, 2020, the balance of prepayment and
other current assets was RMB23.5 million (US$3.5 million), compared with RMB24.9 million as of June
30, 2020. The balance as of September
30, 2020 mainly included: (i) the current portion of
deferred expenses of RMB3.1 million (US$0.5 million); (ii) receivables from
third party payment providers of RMB1.5
million (US$0.2 million);
(iii) deposit receivables of RMB0.5
million (US$0.1 million);
(iv) receivables of consideration from disposal of subsidiaries of
RMB0.5 million (US$0.1 million); (v) deductible value added
input tax of RMB11.7
million (US$1.7 million);
and (vi) other receivables of RMB6.2 million (US$0.9 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
RMB6.7896 to US$1.00, as set forth in the H.10 statistical
release of the Federal Reserve Board on September 30, 2020,
and all translations from Renminbi to Euros were made at the
exchange rate of RMB7.9038 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 2020.
About 500.com Limited
500.com Limited (NYSE: WBAI) is an 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.
[1] Non-GAAP financial measures
exclude the impact of share-based compensation expenses, impairment
of acquired intangible assets, impairment of
goodwill, impairment of long-term 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.
|
[2]
Restricted cash represents: (i) government grants received but
pending final clearance; and (ii) deposits in merchant banks yet to
be withdrawn.
|
[3] Time
deposit represents deposits in commercial banks with original
maturities of greater than three months but less than a
year.
|
[4]
Short-term investment represents investments in structured
financial products provided by financial institutions in the PRC
with an initial maturity of six months.
|
For more information, please contact:
500.com Limited
ir@500wan.com
Christensen
In China
Mr. Eric Yuan Phone: +86-10-5900-1548
E-mail: Eyuan@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,
2019
|
|
September 30,
2020
|
September 30,
2020
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
361,220
|
|
278,391
|
41,003
|
Restricted
cash
|
|
4,576
|
|
2,437
|
359
|
Time
deposits
|
|
23,849
|
|
200
|
29
|
Short-term
investments
|
|
-
|
|
50,000
|
7,364
|
Amounts due from related
parties
|
|
10,401
|
|
560
|
82
|
Prepayments and other
current assets
|
|
30,280
|
|
23,467
|
3,456
|
Total current
assets
|
|
430,326
|
|
355,055
|
52,293
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
|
64,112
|
|
22,828
|
3,362
|
Intangible assets,
net
|
|
4,505
|
|
2,765
|
407
|
Deposits
|
|
5,388
|
|
1,516
|
223
|
Long-term
investments
|
|
152,954
|
|
110,336
|
16,251
|
Right-of-use
assets
|
|
36,607
|
|
6,327
|
932
|
Other non-current
assets
|
|
1,887
|
|
1,664
|
245
|
Total non-current
assets
|
|
265,453
|
|
145,436
|
21,420
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
695,779
|
|
500,491
|
73,713
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accrued payroll
and welfare payable
|
|
6,879
|
|
21
|
3
|
Accrued
expenses and other current liabilities
|
|
51,398
|
|
57,157
|
8,418
|
Income tax
payable
|
|
2,213
|
|
547
|
81
|
Operating lease
liabilities - current
|
|
16,672
|
|
3,802
|
560
|
Total current
liabilities
|
|
77,162
|
|
61,527
|
9,062
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
payables
|
|
2,965
|
|
604
|
89
|
Deferred tax
liabilities
|
|
59
|
|
-
|
-
|
Operating lease
liabilities - non-current
|
|
31,675
|
|
2,989
|
440
|
Total non-current
liabilities
|
|
34,699
|
|
3,593
|
529
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
111,861
|
|
65,120
|
9,591
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
14,849
|
|
-
|
-
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
Class A ordinary
shares, par value US$0.00005 per share,
700,000,000 shares authorized as of December 31, 2019
and September 30, 2020; 420,001,792 and 430,014,792
shares issued and outstanding as of December 31, 2019
and September 30, 2020, respectively
|
|
145
|
|
148
|
22
|
Class B ordinary
shares, par value US$0.00005 per share;
300,000,000 shares authorized as of December 31, 2019
and September 30, 2020; 10,000,099 and 99 shares issued
and outstanding as of December 31, 2019 and September
30, 2020, respectively
|
|
6
|
|
3
|
-
|
Additional paid-in
capital
|
|
2,547,293
|
|
2,583,689
|
380,536
|
Treasury
shares
|
|
(143,780)
|
|
(143,780)
|
(21,177)
|
Accumulated
deficit
|
|
(1,960,692)
|
|
(2,127,811)
|
(313,393)
|
Accumulated other
comprehensive income
|
|
141,484
|
|
136,278
|
20,072
|
Total 500.com
Limited shareholders' equity
|
|
584,456
|
|
448,527
|
66,060
|
Noncontrolling
interests
|
|
(15,387)
|
|
(13,156)
|
(1,938)
|
Total
shareholders' equity
|
|
569,069
|
|
435,371
|
64,122
|
|
|
|
|
|
|
TOTAL LIABILITIES,
NONCONTROLLING INTEREST AND
SHAREHOLDERS' EQUITY
|
|
695,779
|
|
500,491
|
73,713
|
500.com
Limited
Condensed Consolidated Statements of Comprehensive Loss
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars
("US$"),
except for number of shares, per share (or ADS)
data)
|
|
|
Three Months
Ended
|
|
September 30,
2019
|
|
June 30,
2020
|
|
September 30,
2020
|
September 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
Net
Revenues
|
9,763
|
|
3,648
|
|
6,145
|
905
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
Cost of services
|
(16,096)
|
|
(4,616)
|
|
(3,824)
|
(563)
|
Sales and marketing expenses
|
(8,980)
|
|
(4,998)
|
|
(4,158)
|
(612)
|
General and administrative expenses
|
(43,080)
|
|
(35,373)
|
|
(46,401)
|
(6,834)
|
Service development expenses
|
(11,072)
|
|
(10,070)
|
|
(1,840)
|
(271)
|
Total operating
expenses
|
(79,228)
|
|
(55,057)
|
|
(56,223)
|
(8,280)
|
Other operating income
|
1,233
|
|
453
|
|
487
|
72
|
Government grant
|
264
|
|
172
|
|
246
|
36
|
Other operating expenses
|
465
|
|
(1,553)
|
|
(892)
|
(131)
|
Impairment of goodwill
|
(30,916)
|
|
-
|
|
-
|
-
|
Operating loss
from continuing operations
|
(98,419)
|
|
(52,337)
|
|
(50,237)
|
(7,398)
|
Other expenses (income), net
|
(1)
|
|
1,116
|
|
(2)
|
-
|
Interest income
|
3,289
|
|
2,554
|
|
2,225
|
328
|
(Loss) income from equity method investments
|
(699)
|
|
(2,769)
|
|
4,338
|
639
|
Impairment of long-term investments
|
-
|
|
(33,706)
|
|
249
|
37
|
Loss before income
tax
|
(95,830)
|
|
(85,142)
|
|
(43,427)
|
(6,394)
|
Income tax benefit
|
230
|
|
60
|
|
-
|
-
|
Net loss from
continuing operations
|
(95,600)
|
|
(85,082)
|
|
(43,427)
|
(6,394)
|
Net income attributable to noncontrolling interests
|
189
|
|
1,236
|
|
546
|
80
|
Net loss
attributable to 500.com Limited
|
(95,789)
|
|
(86,318)
|
|
(43,973)
|
(6,474)
|
Other comprehensive
loss
|
|
|
|
|
|
|
Changes in unrealized gain
|
-
|
|
436
|
|
739
|
109
|
Foreign currency translation gain (loss)
|
10,195
|
|
(415)
|
|
(7,661)
|
(1,128)
|
Other
comprehensive income (loss), net of tax
|
10,195
|
|
21
|
|
(6,922)
|
(1,019)
|
Comprehensive
loss
|
(85,405)
|
|
(85,061)
|
|
(50,349)
|
(7,413)
|
Less: Comprehensive income attributable to noncontrolling interests
and Redeemable
noncontrolling interest
|
189
|
|
1,236
|
|
546
|
80
|
Comprehensive loss
attributable to 500.com Limited
|
(85,594)
|
|
(86,297)
|
|
(50,895)
|
(7,493)
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
Basic
|
429,912,365
|
|
430,009,704
|
|
430,014,891
|
430,014,891
|
Diluted
|
429,912,365
|
|
430,009,704
|
|
430,014,891
|
430,014,891
|
|
|
|
|
|
|
|
Losses per share
attributable to 500.com Limited-Basic and Diluted
|
|
|
|
|
|
|
Net loss
|
(0.22)
|
|
(0.20)
|
|
(0.10)
|
(0.02)
|
|
|
|
|
|
|
|
Losses per ADS*
attributable to 500.com Limited-Basic and Diluted
|
|
|
|
|
|
|
Net loss
|
(2.23)
|
|
(2.01)
|
|
(1.02)
|
(0.15)
|
|
|
|
|
|
|
|
* 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$"),
except for number of shares, per share (or ADS)
data)
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2019
|
|
June 30,
2020
|
|
September 30,
2020
|
September 30,
2020
|
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
Operating loss
from continuing operations
|
|
(98,419)
|
|
(52,337)
|
|
(50,237)
|
(7,398)
|
Adjustment for share-based compensation expenses
|
|
15,175
|
|
18,649
|
|
12,626
|
1,860
|
Adjustment for impairment of goodwill
|
|
30,916
|
|
-
|
|
-
|
-
|
Adjusted operating
loss from continuing operations (non-GAAP)
|
|
(52,328)
|
|
(33,688)
|
|
(37,611)
|
(5,538)
|
|
|
|
|
|
|
|
|
Net loss
attributable to 500.com Limited
|
|
(95,789)
|
|
(86,318)
|
|
(43,973)
|
(6,474)
|
Adjustment for share-based compensation expenses
|
|
15,175
|
|
18,649
|
|
12,626
|
1,860
|
Adjustment for impairment of goodwill
|
|
30,916
|
|
-
|
|
-
|
-
|
Adjustment for Impairment of long-term investments
|
|
-
|
|
33,706
|
|
(249)
|
(37)
|
Adjustment for deferred tax benefit relating to valuation
allowance
|
|
-
|
|
(60)
|
|
-
|
-
|
Adjusted net loss
attributable to 500.com Limited (non-GAAP)
|
|
(49,698)
|
|
(34,023)
|
|
(31,596)
|
(4,651)
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
429,912,365
|
|
430,009,704
|
|
430,014,891
|
430,014,891
|
Diluted
|
|
429,912,365
|
|
430,009,704
|
|
430,014,891
|
430,014,891
|
|
|
|
|
|
|
|
|
Losses per share
attributable to 500.com Limited (non-GAAP)-Basic and
diluted
|
|
|
|
|
|
|
|
Net loss (non-GAAP)
|
|
(0.12)
|
|
(0.08)
|
|
(0.07)
|
(0.01)
|
|
|
|
|
|
|
|
|
Losses per
ADS* attributable to 500.com Limited (non-GAAP)-Basic and
diluted
|
|
|
|
|
|
|
|
Net loss (non-GAAP)
|
|
(1.16)
|
|
(0.79)
|
|
(0.73)
|
(0.11)
|
|
|
|
|
|
|
|
|
* 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-third-quarter-ended-september-30-2020-301177938.html
SOURCE 500.com Limited