HONG KONG, May 25, 2012 /PRNewswire-Asia/ -- NetDragon
Websoft Inc. ("NetDragon", Stock code: 777), a leading
developer and operator of online games and mobile internet
platforms in China, today
announced its financial results for the first quarter of 2012 ended
31 March 2012. Additionally, a
conference call and live webcast is scheduled at 7:00 PM, May 25,
2012 Hong Kong time (7:00 AM Eastern
Daylight Time, May 25) to
review the company's performance and recent business
developments.
First Quarter 2012 Financial and Operational Highlights
- Revenue was RMB 237.0 million, an
increase of 9.1% over the fourth quarter of 2011 ("QoQ") and an
increase of 51.2% over the first quarter of 2011("YoY").
- Revenue from Online Games was RMB 191.6
million, a decrease of 0.5% QoQ and an increase of 27.2%
YoY.
- Revenue from Mobile Internet was RMB
45.4 million, an increase of 84.1% QoQ and an increase of
644.3% YoY.
- Gross profit was RMB 208.7
million, an increase of 10.5% QoQ and an increase of 46.8%
YoY.
- Operating profit was RMB 64.1
million, an increase of 138.3% QoQ and an increase of 69.8%
YoY.
- Profit attributable to owners of the company was RMB 55.8 million, an increase of 609.5% QoQ and
an increase of 61.1% YoY.
- Basic earnings per share were RMB 10.88
cents, diluted EPS were RMB 10.87
cents.
- Peak concurrent users ("PCU") for online games were 600,000, a
decrease of 2.0% QoQ and an increase of 9.9% YoY.
- Average concurrent users ("ACU") for online gameswere
297,000, a decrease of 4.2% QoQ and an increase of
20.7% YoY.
Mr. Liu Dejian, NetDragon's Chairman and Executive Director
commented: "During the first quarter, we are delighted with the
overall growth of the company, driven by the well-established and
smoothly operating online games business as well as the
fast-growing mobile internet business. Quarterly revenue hit a
historic high of RMB 237.0 million;
net profit also increased 621.2% QoQ, laying a solid foundation for
the company to achieve 2012 strategic goals.
"Regarding our online games business, after the success of two
expansion packs in 2011, Eudemons Online's new Chinese version
expansion pack 'Legacy of Asgard' entered its beta testing this
March and set a record high in monthly revenue, demonstrating that
this classic game is still maintaining its powerful vitality and
market appeal. Going forward, we plan to explore further
opportunities in the branding and serializing of Eudemons Online.
In addition, we've launched the expansion pack 'Invasion of
Pirates' for Conquer Online in several foreign languages this
quarter, in a move to maintain the appeal of this game in overseas
markets."
"In terms of our mobile internet business, we are steadily
advancing our strategy of providing a superior yet simple end-user
experience as well as offering differentiated content and services,
all with the aim of maintaining our leadership position in the
mobile marketplace space. So far, we have achieved good results.
First quarter revenue increased 84.1% QoQ to RMB45.4 million, and now represented 19.2% of
total revenue compared with 11.4% in the previous quarter. By
leveraging over a dozen years of R&D experience in various IT
fields, we will continue to rapidly roll out mobile games and
develop more e-commerce and content-focused verticals. Not only
will this support direct monetization of our user base, but it will
also spur the growth of mobile advertising and platform
distribution revenues. In addition, we recently announced our '91
Win Matrix' cooperative plan, in a move to provide technical,
operational, financial and brand cooperation to small and
medium-sized developers in a joint effort to build a healthy mobile
internet value chain. Going forward, we have full confidence in
achieving NetDragon's 2012 overall strategic goals."
First Quarter 2012 Business Highlights
Online Games
- NetDragon launched the EP "Invasion of Pirates" for the martial
arts MMORPG, Conquer Online, in French, Spanish, Arabic and
Traditional Chinese.
- NetDragon launched new Malaysian version EP "Demon Rising" for
its 2.5D Fantasy MMORPG, Eudemons Online.
- NetDragon was honored with "2011 Annual Most Popular Online
Gaming Company in China" by 17173
"2011 China Online Games List"; Eudemons Online received three
awards alone: "China's Annual Most
Popular Online Game", "Most Popular 2.5D Online Games" and "Most
Popular China-Made Original Online Games".
Mobile Internet
- 91 PC Suite, NetDragon's applications distribution platform for
all mainstream operating systems, exceeded 75 million total users.
And total users for HiMarket, NetDragon's Android applications
distribution platform, exceeded 21 million. As of March 2012, total aggregate downloads over both
marketplaces surpassed 5 billion.
- NetDragon's in-house developed mobile games, Dragon Royal
Online and HengHa Warring States, as well as jointly-operated
mobile games, such as 91 Immortal and 91 Richistan, were officially
launched in the first quarter.
Recent Developments and Business Outlook
Online Games
- Eudemons Online's new Chinese EP "Legacy of Asgard" was
officially launched in April 2012.
The EP hit a record high in monthly revenue during the beta in
March 2012.
- NetDragon's first 3D MMORPG Dungeon Keeper Online entered open
beta testing in April 2012.
- NetDragon's 2.5D Sci-Fi MMORPG Zero Online launched its new
Chinese EP in May. This revolutionary new EP introduced an entirely
new copy task, enabling players to readily have a more
sophisticated playing experience as well as enjoy the fun of a
single-player game.
- iPad based Conquer Online will release additional language
versions in a move to further expand its presence on
tablets.
Mobile Internet
- NetDragon announced the launch of its nationwide developer
program "91 Win Matrix", inviting developers to join the 91 Open
Mobile Platform for mobile innovative applications development.
NetDragon will provide developers with comprehensive support,
including technical, operational, financial and brand
cooperation.
- "91 Kid Applications", a platform within 91 PC Suite, which
focuses on recommending mobile applications for children and for
mothers as a tool for interacting with their toddlers, was
officially rolled out. This is NetDragon's first formal foray into
the market segment for childcare products.
- NetDragon, together with DeNA Co., Ltd., Japan's leading social gaming platform
operator, signed an agreement with Jiangyin National High-tech
District Administration Committee in Hong
Kong. This joint venture company will localize non-Chinese
social games, including a roster of DeNA Group's popular in-house
developed and third party titles, for the growing smartphone market
in China.
- NetDragon will keep enriching games, applications, themes,
ringtones, wallpapers, and other contents on our mobile internet
platforms. With more efforts on analyzing data, distributing more
customized and personalized contents, NetDragon will provide
smartphone users with more valuable services.
Financial Highlights:
|
RMB('000)
|
1Q
2012
|
4Q
2011
|
1Q
2011
|
QoQ(%)
|
YoY(%)
|
|
Revenue
|
236,975
|
217,176
|
156,755
|
9.1%
|
51.2%
|
|
-Online Games
|
191,581
|
192,513
|
150,656
|
(0.5%)
|
27.2%
|
|
-Mobile Internet Business
|
45,394
|
24,663
|
6,099
|
84.1%
|
644.3%
|
|
Gross
Profit
|
208,700
|
188,839
|
142,212
|
10.5%
|
46.8%
|
|
GPM
|
88.1%
|
87.0%
|
90.7%
|
1.1%
|
(2.6%)
|
|
Profit for
the period
|
55,873
|
7,747
|
34,672
|
621.2%
|
61.1%
|
|
NPM
|
23.6%
|
3.6%
|
22.1%
|
20.0%
|
1.5%
|
|
EPS-Basic
(RMB cents)
|
10.88
|
1.53
|
6.57
|
611.1%
|
65.6%
|
|
EPS-Diluted (RMB cents)
|
10.87
|
1.53
|
6.57
|
610.5%
|
65.4%
|
Metrics
Online Games
|
1Q
2012
|
4Q
2011
|
3Q
2011
|
2Q
2011
|
1Q
2011
|
4Q
2010
|
|
PCU
|
600,000
|
612,000
|
569,000
|
643,000
|
546,000
|
542,000
|
|
ACU
|
297,000
|
310,000
|
300,000
|
311,000
|
246,000
|
232,000
|
Management Conference Call
NetDragon will host a management conference call and webcast to
review its financial results for the first quarter ended
March 31, 2012 on Friday, May 25, 2012 Hong Kong
time.
Details of the live conference call are as follows:
Time: 7:00 PM Beijing / Hong
Kong Time / 7:00 AM Eastern Daylight
Time, May 25, 2012
|
International Toll
|
65-6723-9381
|
|
US Toll Free
|
1-866-519-4004
|
|
Hong Kong Toll Free
|
800-930-346
|
|
China Toll Free (for fixed line users)
|
800-819-0121
|
|
China Toll Free (for mobile users)
|
400-620-8038
|
|
Passcode
|
NetDragon
|
Replay service is available from 10:00
PM May 25 to 11:59 PM, June 1,
2012 HKT. Below are the replay numbers for different
regions. International Toll: 61-2-8235-5000;
US Toll Free: 1-866-214-5335; Replay passcode:
80265474. A live and archived webcast of the conference call
will be available on the Investor Relations section of NetDragon's
website at http://ir.netdragon.com/investor/ir_events.shtml.
Participants in the live webcast should visit the aforementioned
website 10 minutes prior to the call, then click on the icon for
"1Q 2012 Results Conference Call" and follow the registration
instructions.
About NetDragon
NetDragon Websoft Inc. (HKSE: 0777) is a leading innovator and
creative force in China's online
gaming and mobile internet industries. Established in 1999, we are
a vertically integrated developer & operator of MMORPGs and a
cutting-edge R&D powerhouse. We launched our first self-made
online game Monster & Me in 2002, followed by multiple titles
including Eudemons Online, Conquer Online and Heroes of Might &
Magic Online. We are also China's
pioneer in overseas expansion, directly operating titles in
overseas markets since 2003 in English, Spanish, Arabic and other
languages. In the mobile Internet industry, we provide China's leading marketplace for smartphone
users, offering applications and content for the most popular
mobile operating systems. NetDragon offers many well-known mobile
Internet products and services, including 91 Panda Reader, 91 PC
Suite, 91 Panda Space, sj.91.com and hiapk.com.
|
For
investor inquiries, please contact:
|
|
|
|
NetDragon Websoft Inc.
|
|
Ms. Maggie
Zhou
|
|
Investor
Relations Director
|
|
Tel.:
|
+86 591
8754 3120
+86 591
8390 2825
|
|
Email:
|
maggie@nd.com.cn
|
|
ndir@nd.com.cn
|
|
Website:
|
www.nd.com.cn/ir
|
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
FOR THE
THREE MONTHS ENDED 31 MARCH 2012
|
|
Three
Months Ended
|
|
31/3/2012
|
31/12/2011
|
|
31/3/2011
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)/
(Restated)
|
|
RMB
'000
|
RMB
'000
|
RMB
'000
|
|
Revenue
|
236,975
|
|
217,176
|
|
156,755
|
|
Cost of
revenue
|
(28,275)
|
|
(28,337)
|
|
(14,543)
|
|
|
|
|
|
|
|
Gross
profit
|
208,700
|
|
188,839
|
|
142,212
|
|
Other
income and gains
|
3,989
|
|
17,369
|
|
9,912
|
|
Selling
and marketing expenses
|
(33,487)
|
|
(46,277)
|
|
(25,318)
|
|
Administrative expenses
|
(58,911)
|
|
(59,529)
|
|
(46,591)
|
|
Development costs
|
(45,786)
|
|
(47,387)
|
|
(40,577)
|
|
Other
expenses
|
(1,721)
|
|
(5,047)
|
|
(1,885)
|
|
Net loss
on derivative financial instruments
|
(3,961)
|
|
(17,582)
|
|
-
|
|
Finance
costs
|
(4,729)
|
|
(3,490)
|
|
-
|
|
Share of
losses of associates
|
(373)
|
|
(439)
|
|
-
|
|
|
|
|
|
|
|
Profit
before taxation
|
63,721
|
|
26,457
|
|
37,753
|
|
Taxation
|
(7,848)
|
|
(18,710)
|
|
(3,081)
|
|
Profit
for the period
|
55,873
|
|
7,747
|
|
34,672
|
|
|
|
|
|
|
|
Other
comprehensive expense:
|
|
|
|
|
|
|
Exchange
differences arising on
translation of foreign operations
|
(17)
|
|
(171)
|
|
(172)
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
55,856
|
|
7,576
|
|
34,500
|
|
|
|
|
|
|
|
Profit for
the period attributable to:
|
|
|
|
|
|
|
-Owners of the Company
|
55,771
|
|
7,861
|
|
34,612
|
|
-Non-controlling interests
|
102
|
|
(114)
|
|
60
|
|
55,873
|
|
7,747
|
|
34,672
|
|
Total
comprehensive income attributable to:
|
|
|
|
|
|
|
- Owners
of the Company
|
55,754
|
|
7,690
|
|
34,440
|
|
-
Non-controlling interests
|
102
|
|
(114)
|
|
60
|
|
55,856
|
|
7,576
|
|
34,500
|
|
|
|
|
|
|
|
Earnings per share
|
RMB
cents
|
|
RMB
cents
|
|
RMB
cents
|
|
-
Basic
|
10.88
|
|
1.53
|
|
6.57
|
|
-
Diluted
|
10.87
|
|
1.53
|
|
6.57
|
|
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
(AS AT
31 MARCH 2012)
|
|
31
March 2012
|
|
31
December 2011
|
|
(Unaudited)
|
|
(Audited)
|
|
RMB
'000
|
|
RMB
'000
|
|
Non-current assets
|
|
|
|
|
Property,
plant and equipment
|
195,851
|
|
192,119
|
|
Prepaid
lease payments
|
140,682
|
|
86,298
|
|
Investment
property
|
15,807
|
|
15,809
|
|
Deposit
paid for acquisition of property, plant and equipment
|
36
|
|
19,050
|
|
Intangible
assets
|
6,398
|
|
4,520
|
|
Interests
in associates
|
12,296
|
|
12,669
|
|
Available-for-sale investments
|
4,000
|
|
4,000
|
|
Loan
receivables
|
6,125
|
|
6,314
|
|
Deferred
tax assets
|
54
|
|
54
|
|
381,249
|
|
340,833
|
|
Current
assets
|
|
|
|
|
Prepaid
lease payments
|
2,902
|
|
1,784
|
|
Loan
receivables
|
966
|
|
1,091
|
|
Trade
receivables
|
33,259
|
|
41,555
|
|
Other
receivables, prepayments and deposits
|
49,064
|
|
41,429
|
|
Amounts
due from related companies
|
1,598
|
|
1,200
|
|
Bank
deposits
|
110,000
|
|
40,000
|
|
Bank
balances and cash
|
1,387,418
|
|
1,428,928
|
|
1,585,207
|
|
1,555,987
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
7,040
|
|
5,001
|
|
Other
payables and
accruals
|
122,025
|
|
121,353
|
|
Deferred
income
|
27,286
|
|
25,528
|
|
Amounts
due to related companies
|
243
|
|
965
|
|
Promissory
notes
|
-
|
|
30,623
|
|
Income tax
payable
|
38,521
|
|
42,849
|
|
195,115
|
|
226,319
|
|
Net
current assets
|
1,390,092
|
|
1,329,668
|
|
|
|
|
|
Total
assets less current liabilities
|
1,771,341
|
|
1,670,501
|
|
Non-current liabilities
|
|
|
|
|
Redeemable
convertible preferred shares
|
164,916
|
|
131,675
|
|
Conversion
option derivative liability
|
46,080
|
|
39,932
|
|
210,996
|
|
171,607
|
|
Net
assets
|
1,560,345
|
|
1,498,894
|
|
|
|
|
|
Capital
and reserves
|
|
|
|
|
Share
capital
|
38,226
|
|
38,226
|
|
Share
premium and reserves
|
1,522,474
|
|
1,461,126
|
|
Equity
attributable to owners of the Company
|
1,560,700
|
|
1,499,352
|
|
Non-controlling interests
|
(355)
|
|
(458)
|
|
1,560,345
|
|
1,498,894
|
SOURCE NetDragon Websoft Inc.
