UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 


 

FORM 6-K

 


 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of November 2012

 

Commission File Number: 001-33587

 


 

PERFECT WORLD CO., LTD.

 


 

Perfect World Plaza, Building 306, 86 Beiyuan Road

Chaoyang District, Beijing 100101

People’s Republic of China

(86 10) 5780-5700

(Address of principal executive offices)

 


 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x                 Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

Perfect World Co., Ltd.

 

 

 

 

 

By:

/s/ Kelvin Wing Kee Lau

 

Name:

Kelvin Wing Kee Lau

 

Title:

Chief Financial Officer

 

 

Date: November 20, 2012

 

 

2



 

EXHIBIT INDEX

 

 

 

Page

 

 

 

Exhibit 99.1 — Press release

 

4

 

3



Exhibit 99.1

 

GRAPHIC

 

PERFECT WORLD ANNOUNCES THIRD QUARTER 2012 UNAUDITED FINANCIAL RESULTS

 

(Beijing, China — November 19, 2012) — Perfect World Co., Ltd. (NASDAQ: PWRD) (“Perfect World” or the “Company”), a leading online game developer and operator based in China, today announced its unaudited financial results for the third quarter ended September 30, 2012.

 

Third Quarter 2012 Highlights1

 

·                  Total revenues were RMB695.8 million (USD110.7 million), as compared to RMB676.4 million in 2Q12 and RMB708.9 million in 3Q11.

 

·                  Gross profit was RMB566.9 million (USD90.2 million), as compared to RMB549.8 million in 2Q12 and RMB587.7 million in 3Q11.

 

·                  Operating profit was RMB109.4 million (USD17.4 million), as compared to RMB155.2 million in 2Q12 and RMB193.9 million in 3Q11.  Non-GAAP operating profit2 was RMB127.5 million (USD20.3 million), as compared to RMB172.5 million in 2Q12 and RMB221.3 million in 3Q11.

 

·                  Net income attributable to the Company’s shareholders was RMB86.2 million (USD13.7 million), as compared to RMB158.2 million in 2Q12 and RMB143.6 million in 3Q11.  Non-GAAP net income attributable to the Company’s shareholders2 was RMB104.3 million (USD16.6 million), as compared to RMB175.5 million in 2Q12 and RMB171.1 million in 3Q11.

 

·                  Basic and diluted earnings per American Depositary Share (“ADS”)3 were RMB1.78 (USD0.28) and RMB1.77 (USD0.28), respectively, as compared to RMB3.28 and RMB3.25, respectively, in 2Q12, and RMB2.96 and RMB2.83, respectively, in 3Q11.  Non-GAAP basic and diluted earnings per ADS2 were RMB2.16 (USD0.34) and RMB2.14 (USD0.34), respectively, as compared to RMB3.64 and RMB3.60, respectively, in 2Q12, and RMB3.53 and RMB3.37, respectively, in 3Q11.

 

·                  Launched open beta testing for “Return of the Condor Heroesin September 2012 in China.

 

·                  Released English version of “Torchlight 2” in September 2012.

 


1 The U.S. dollar (USD) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader.  The conversion of Renminbi (RMB) into USD in this release is based on the noon buying rate in The City of New York for cable transfers in RMB per USD as certified for customs purposes by the Federal Reserve Bank of New York as of September 28, 2012, which was RMB6.2848 to USD1.00.  The percentages stated in this press release are calculated based on the RMB amounts.

 

2 As used in this press release, non-GAAP operating profit, non-GAAP net income attributable to the Company’s shareholders and non-GAAP earnings per ADS are defined to exclude share-based compensation charge from operating profit, net income attributable to the Company’s shareholders and earnings per ADS, respectively.  See “Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.

 

3 Each ADS represents five ordinary shares.

 

4



 

Mr. Michael Chi, Chairman and Co-Chief Executive Officer of Perfect World commented, “We are pleased to announce our third quarter results.  During the third quarter, we primarily focused on content development of our portfolio and decelerated in-game promotional activities.  As such, the overall performance of our existing games came in slightly softer than the previous quarter as we expected.  However, our total revenues were 2.9% higher on a sequential basis, which was ahead of the high end of our expectations and primarily a result of solid revenue contribution from our new game.  During the third quarter, we released the English version of ‘Torchlight 2,’ a pay-per-install game.  This game was developed by our majority-owned subsidiary, Runic Games, Inc. (“Runic Games”), a top-tier game development studio based in the U.S.  Toward the end of the third quarter, we also launched an exciting turn-based martial arts MMORPG, ‘Return of the Condor Heroes’ in China.  This new title adapted from Louis Cha’s literary classic of the same name is expected to gradually ramp up revenue contribution for us during the fourth quarter.”

 

“In addition to bringing new games to our players, we also remain dedicated to maintaining a healthy life cycle for our existing games.  We continued to provide exciting new game content to players of our existing games through regular releases of expansion packs and content updates.  For example, we released expansion packs for our flagship titles, ‘Zhu Xian’ and ‘Perfect World II,’ toward the end of the third quarter.”

 

“As we continue to enhance content for our existing games, we are also further expanding on our deep and diverse pipeline, which has always been one of our key competitive advantages.  A number of attractive titles across a variety of genres are now in development.  Among them are our highly-anticipated MMORPGs, ‘Swordsman Online,’ ‘Saint Seiya Online’ and ‘Legend of the Condor Heroes,’ as well as a number of web games.  We look forward to introducing these titles to game players in the coming year and beyond and believe that they will become new growth drivers for our business.”

 

Mr. Robert Hong Xiao, Co-CEO of Perfect World continued, “In addition to the great titles our Chinese studios are developing, we also have a number of global titles in our pipeline.  Our Cryptic Studios in the U.S. is working on ‘Neverwinter,’ another highly-anticipated MMORPG that we plan to initially launch in North America.  Cryptic Studios, as well as our other specialized R&D studios across the world, not only bring more world-class entertainment to our pipeline, but also play an important role in our globalization strategy in terms of further strengthening our well-established R&D capabilities worldwide.”

 

“Another world-class title that we are very excited about is ‘Dota 2,’ a world-famous title with a unique mix of action, RTS and RPG gameplay.  We recently obtained exclusive rights to operate this game in mainland China.  We look forward to leveraging our vast operational experience in China to bring more world-class entertainment to our players.”

 

“Our strong operational capabilities are an important component of our globalization strategy.  In addition to China, we also have an extensive operational network overseas and we continued to make progress in our overseas operations and licensing activities.  Recently, we successfully launched licensed games, ‘Dark Blood’ and ‘RaiderZ,’ through our overseas subsidiaries in Japan and the U.S., respectively.  During the quarter, we also signed several new agreements to license more of our games to overseas operators.”

 

“As we look forward, we will continue to capitalize on our diverse portfolio and pipeline, strong global R&D capabilities, and extensive global operating network to deliver more exciting and innovative titles to gamers all over the world.”

 

5



 

Third Quarter 2012 Financial Results

 

Total Revenues

 

Total revenues were RMB695.8 million (USD110.7 million) in 3Q12, as compared to RMB676.4 million in 2Q12 and RMB708.9 million in 3Q11.

 

Online game operation revenues, which include both domestic and overseas online game operations, were RMB608.2 million (USD96.8 million) in 3Q12, as compared to RMB626.4 million in 2Q12 and RMB643.2 million in 3Q11.  In the third quarter, the Company decelerated in-game promotional activities and continued to focus on content enhancements in order to maintain a healthy life cycle for its existing games.

 

The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 601,000 in 3Q12, as compared to 739,000 in 2Q12 and 828,000 in 3Q11.  During late second quarter and throughout the third quarter, the Company stepped up its anti-cheating efforts for certain games in order to maintain a healthy and fun gaming environment for players.  The decrease from 2Q12 was mainly due to such stringent anti-cheating efforts, as well as adverse seasonality factors affecting user traffic during the third quarter.  In addition, expansion packs for certain games were released near or after the end of the third quarter.  As such, user traffic remained at a lower level prior to releases of the new content.

 

Licensing revenues were RMB39.0 million (USD6.2 million) in 3Q12, as compared to RMB46.9 million in 2Q12 and RMB55.8 million in 3Q11.  The decrease from 2Q12 was mainly due to lower initial license fees as the Company did not launch any new games through its partners in overseas markets in 3Q12.

 

Other revenues were RMB48.6 million (USD7.7 million) in 3Q12, as compared to RMB3.0 million in 2Q12 and RMB9.9 million in 3Q11.  The increase from 2Q12 was primarily due to the contribution from English version of “Torchlight 2” released in 3Q12.  “Torchlight 2” is a popular pay-per-install game developed by Runic Games, the Company’s majority-owned subsidiary based in the U.S.

 

Cost of Revenues

 

The cost of revenues was RMB128.9 million (USD20.5 million) in 3Q12, as compared to RMB126.6 million in 2Q12 and RMB121.2 million in 3Q11.

 

Gross Profit and Gross Margin

 

Gross profit was RMB566.9 million (USD90.2 million) in 3Q12, as compared to RMB549.8 million in 2Q12 and RMB587.7 million in 3Q11.  Gross margin was 81.5% in 3Q12, as compared to 81.3% in 2Q12 and 82.9% in 3Q11.

 

6



 

Operating Expenses

 

Operating expenses were RMB457.5 million (USD72.8 million) in 3Q12, as compared to RMB394.6 million in 2Q12 and RMB393.9 million in 3Q11.  The increase in operating expenses from 2Q12 was mainly due to increases in sales and marketing expenses, and R&D expenses in 3Q12.

 

R&D expenses were RMB197.1 million (USD31.4 million) in 3Q12, as compared to RMB189.7 million in 2Q12 and RMB170.6 million in 3Q11.  The increase from 2Q12 was primarily due to an increase in staff cost.

 

Sales and marketing expenses were RMB177.1 million (USD28.2 million) in 3Q12, as compared to RMB121.8 million in 2Q12 and RMB146.7 million in 3Q11.  The increase from 2Q12 was largely due to an increase in advertising and promotional expenses associated with the launch of the Company’s new game, “Return of the Condor Heroes,” and releases of several expansion packs for its existing games, including the flagship titles “Zhu Xian” and “Perfect World II.”

 

General and administrative (“G&A”) expenses were RMB83.3 million (USD13.2 million) in 3Q12, as compared to RMB83.1 million in 2Q12 and RMB76.5 million in 3Q11.

 

Operating Profit

 

Operating profit was RMB109.4 million (USD17.4 million) in 3Q12, as compared to RMB155.2 million in 2Q12 and RMB193.9 million in 3Q11.  Non-GAAP operating profit was RMB127.5 million (USD20.3 million) in 3Q12, as compared to RMB172.5 million in 2Q12 and RMB221.3 million in 3Q11.

 

Total Other Income

 

Total other income was RMB16.1 million (USD2.6 million) in 3Q12, as compared to RMB38.9 million in 2Q12 and RMB28.5 million in 3Q11.  Due to the fluctuation of the euro against the U.S. dollar, a foreign exchange loss was realized in 3Q12 while a foreign exchange gain was realized in 2Q12.

 

Income Tax Expense

 

Income tax expense was RMB29.1 million (USD4.6 million) in 3Q12, as compared to RMB38.1 million in 2Q12 and RMB78.8 million in 3Q11.  The decrease from 2Q12 was primarily a result of the change in the operating profit in 3Q12.

 

Net Income Attributable to the Company’s Shareholders

 

Net income attributable to the Company’s shareholders was RMB86.2 million (USD13.7 million) in 3Q12, as compared to RMB158.2 million in 2Q12 and RMB143.6 million in 3Q11.  Non-GAAP net income attributable to the Company’s shareholders was RMB104.3 million (USD16.6 million) in 3Q12, as compared to RMB175.5 million in 2Q12 and RMB171.1 million in 3Q11.

 

7



 

Basic and diluted earnings per ADS were RMB1.78 (USD0.28) and RMB1.77 (USD0.28), respectively, in 3Q12, as compared to RMB3.28 and RMB3.25, respectively, in 2Q12, and RMB2.96 and RMB2.83, respectively, in 3Q11.  Non-GAAP basic and diluted earnings per ADS were RMB2.16 (USD0.34) and RMB2.14 (USD0.34), respectively, in 3Q12, as compared to RMB3.64 and RMB3.60, respectively, in 2Q12, and RMB3.53 and RMB3.37, respectively, in 3Q11.

 

Cash and Cash Equivalents

 

As of September 30, 2012, the Company had RMB745.8 million (USD118.7 million) of cash and cash equivalents, as compared to RMB964.1 million as of June 30, 2012.  The decrease was mainly due to the Company’s short-term investments in certain structured deposits, and was partially offset by the net cash inflow generated from the Company’s online game operations.

 

Recent Developments

 

Obtained Exclusive Rights to Operate Dota 2” in Mainland China

 

In October 2012, the Company obtained exclusive rights to operate “Dota 2,” a popular online game with the unique mix of action, RTS and RPG gameplay, in mainland China.

 

Promoted Mr. Alex Yiran Xu to Senior Vice President

 

In November 2012, the Company promoted Mr. Alex Yiran Xu, the Company’s Vice President of Strategy, to the Company’s Senior Vice President of Business Development.

 

Business Outlook

 

Based on the Company’s current operations, total revenues for the fourth quarter of 2012 are expected to be between RMB661 million and RMB696 million, representing a flat to slight decline from the third quarter of 2012.  The Company successfully released English version of “Torchlight 2,” a popular pay-per-install game, which contributed to revenues in the third quarter.  The Company does not expect the revenue contribution from this game to be as significant in the fourth quarter.  On the other hand, the Company’s new game, “Return of the Condor Heroes,” is expected to contribute additional revenues for the fourth quarter, but it will take time to ramp up gradually.

 

Non-GAAP Financial Measures

 

To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company’s shareholders and non-GAAP earnings per ADS by excluding share-based compensation charge from operating profit, net income attributable to the Company’s shareholders and earnings per ADS, respectively.  The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses that are

 

8



 

not expected to result in cash payments.  The use of the above non-GAAP financial measures has certain limitations.  Share-based compensation charge has been and will continue to be incurred and is not reflected in the presentation of the non-GAAP financial measures.  It should be considered in the overall evaluation of our results.  None of the non-GAAP measures is a measure of net income attributable to the Company’s shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP.  We compensate for these limitations by providing the relevant disclosure of our share-based compensation charge in our reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating our performance.  These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP.  Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure are set forth at the end of this release.

 

9



 

Conference Call

 

Perfect World will host a conference call and live webcast at 8:00pm Eastern Standard Time on Monday, November 19, 2012 (9:00am Beijing time on Tuesday, November 20, 2012).

 

Dial-in numbers for the live conference call are as follows:

· U.S. Toll Free Number

1-866-519-4004

· International Dial-in Number

+65-6723-9381

· Mainland China Toll Free Number

800-819-0121

· Hong Kong Toll Free Number

80-093-0346

· U.K. Toll Free Number

080-8234-6646

Conference ID: PWRD

 

 

A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World’s website at http://www.pwrd.com.

 

A telephone replay of the call will be available beginning two hours after the conclusion of the conference call through 11:59pm Eastern Time, November 27, 2012.

 

Dial-in numbers for the replay are as follows:

· U.S. Toll Free Number

1-855-452-5696

· International Dial-in Number

+61-2-8199-0299

Conference ID: 65232118

 

 

About Perfect World Co., Ltd. (http://www.pwrd.com)

 

Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator based in China.  Perfect World primarily develops online games based on proprietary game engines and game development platforms.  Perfect World’s strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently and promptly introduce popular games designed to cater changing customer preferences and market trends.  Perfect World’s current portfolio of self-developed online games includes massively multiplayer online role playing games (“MMORPGs”): “Perfect World,” “Legend of Martial Arts,” “Perfect World II,” “Zhu Xian,” “Chi Bi,” “Pocketpet Journey West,” “Battle of the Immortals,” “Fantasy Zhu Xian,” “Forsaken World,” “Dragon Excalibur,” “Empire of the Immortals” and “Return of the Condor Heroes;” an online casual game: “Hot Dance Party;” and a number of web games and social networking games.  While a substantial portion of the revenues are generated in China, Perfect World operates its games in North America, Europe and Japan through its own subsidiaries.  Perfect World’s games have also been licensed to leading game operators in a number of countries and regions in Asia, Latin America, Australia, New Zealand, and the Russian Federation and other Russian speaking territories.  Perfect World intends to continue to explore new and innovative business models and is committed to maximizing shareholder value over time.

 

10



 

Safe Harbor Statements

 

This press release contains forward-looking statements.  These statements constitute forward-looking statements under 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” and similar statements.  Among other things, the management’s quotations and “Business Outlook” contain forward-looking statements.  Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Potential risks and uncertainties include, but are not limited to, Perfect World’s limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere.  Further information regarding these and other risks is included in Perfect World’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.  All information provided in this press release and in the attachments is as of November 19, 2012, and Perfect World 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 applicable law.

 

For further information, please contact

 

Perfect World Co., Ltd.

Vivien Wang — Vice President, Investor Relations & Corporate Communications

Joanne Deng — Investor Relations Manager

Tel: +86-10-5780-5700

Fax: +86-10-5780-5713

Email: ir@pwrd.com

http://www.pwrd.com

 

Christensen Investor Relations

Patty Bruner

Tel: +1-480-614-3036

Fax: +1-480-614-3033

Email: pbruner@christensenir.com

 

Victor Kuo

Tel: +86-10-5826-4939

Fax: +86-10-5826-4838

Email: vkuo@christensenir.com

 

11



 

Perfect World Co., Ltd.

Unaudited Consolidated Balance Sheets

 

 

 

December 31,

 

September 30,

 

September 30,

 

 

 

2011

 

2012

 

2012

 

 

 

RMB

 

RMB

 

USD

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

2,150,213,495

 

745,781,152

 

118,664,262

 

Restricted cash

 

535,500,431

 

836,404,466

 

133,083,704

 

Short-term investments

 

139,517,875

 

1,425,249,386

 

226,777,206

 

Accounts receivable, net

 

142,543,972

 

144,704,183

 

23,024,469

 

Due from related parties

 

40,000

 

 

 

Prepayment and other assets

 

94,628,466

 

146,152,866

 

23,254,975

 

Deferred tax assets

 

27,130,068

 

28,384,360

 

4,516,351

 

Total current assets

 

3,089,574,307

 

3,326,676,413

 

529,320,967

 

Non current assets

 

 

 

 

 

 

 

Equity investments

 

33,384,729

 

221,887,923

 

35,305,487

 

Time deposits

 

293,892,575

 

50,840,345

 

8,089,413

 

Restricted time deposits

 

125,717,425

 

7,875,551

 

1,253,111

 

Property, equipment, and software, net

 

1,259,850,498

 

1,223,150,089

 

194,620,368

 

Construction in progress

 

4,793,214

 

11,820,316

 

1,880,778

 

Intangible assets, net

 

273,193,489

 

244,126,194

 

38,843,908

 

Goodwill

 

466,328,513

 

462,973,188

 

73,665,540

 

Due from related parties

 

7,561,080

 

7,609,200

 

1,210,731

 

Prepayments and other assets

 

62,457,484

 

55,744,033

 

8,869,659

 

Deferred tax assets

 

35,235,313

 

37,331,298

 

5,939,934

 

Total assets

 

5,651,988,627

 

5,650,034,550

 

898,999,896

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

89,123,596

 

107,742,439

 

17,143,336

 

Short-term bank loans

 

560,780,100

 

754,579,000

 

120,064,123

 

Advances from customers

 

95,921,079

 

96,487,174

 

15,352,465

 

Salary and welfare payable

 

204,976,567

 

159,630,280

 

25,399,421

 

Taxes payable

 

43,236,335

 

33,705,412

 

5,363,005

 

Accrued expenses and other liabilities

 

68,663,124

 

61,482,708

 

9,782,763

 

Due to related parties

 

155,000

 

365,000

 

58,077

 

Deferred revenues

 

461,921,174

 

415,823,362

 

66,163,340

 

Deferred tax liabilities

 

106,933,061

 

64,347,489

 

10,238,590

 

Deferred government grants

 

579,526

 

530,448

 

84,402

 

Total current liabilities

 

1,632,289,562

 

1,694,693,312

 

269,649,522

 

Deferred revenues

 

17,481,338

 

10,301,260

 

1,639,075

 

Deferred tax liabilities

 

8,005,954

 

7,524,786

 

1,197,299

 

Other long-term liabilities

 

8,803,103

 

 

 

Total liabilities

 

1,666,579,957

 

1,712,519,358

 

272,485,896

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

Ordinary shares (US$0.0001 par value, 10,000,000,000 shares authorized, 29,671,195 Class A ordinary shares issued and outstanding, 201,238,020 Class B ordinary shares issued and outstanding as of December 31, 2011; 10,000,000,000 shares authorized, 29,671,195 Class A ordinary shares issued and outstanding, 212,028,805 Class B ordinary shares issued and outstanding as of September 30, 2012)

 

186,948

 

193,741

 

30,827

 

Additional paid-in capital

 

212,421,037

 

313,123,262

 

49,822,311

 

Statutory reserves

 

268,014,793

 

270,581,391

 

43,053,302

 

Accumulated other comprehensive loss

 

(60,430,695

)

(56,713,482

)

(9,023,912

)

Retained earnings

 

3,538,087,071

 

3,382,100,087

 

538,139,652

 

Total Perfect World Shareholders’ Equity

 

3,958,279,154

 

3,909,284,999

 

622,022,180

 

Non-controlling interests

 

27,129,516

 

28,230,193

 

4,491,820

 

Total Shareholders’ Equity

 

3,985,408,670

 

3,937,515,192

 

626,514,000

 

Total Liabilities and Shareholders’ Equity

 

5,651,988,627

 

5,650,034,550

 

898,999,896

 

 



 

Perfect World Co., Ltd.

Unaudited Consolidated Statements of Operations

 

 

 

Three months ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

 

 

2011

 

2012

 

2012

 

2012

 

 

 

RMB

 

RMB

 

RMB

 

USD

 

Revenues

 

 

 

 

 

 

 

 

 

Online game operation revenues

 

643,240,306

 

626,444,057

 

608,210,956

 

96,774,910

 

Licensing revenues

 

55,801,551

 

46,923,638

 

38,967,837

 

6,200,330

 

Other revenues

 

9,901,854

 

3,042,555

 

48,630,435

 

7,737,786

 

Total Revenues

 

708,943,711

 

676,410,250

 

695,809,228

 

110,713,026

 

Cost of revenues

 

(121,227,110

)

(126,649,248

)

(128,875,426

)

(20,505,891

)

Gross profit

 

587,716,601

 

549,761,002

 

566,933,802

 

90,207,135

 

Operating expenses

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(170,640,162

)

(189,673,612

)

(197,110,698

)

(31,363,082

)

Sales and marketing expenses

 

(146,746,286

)

(121,773,658

)

(177,135,483

)

(28,184,745

)

General and administrative expenses

 

(76,475,913

)

(83,138,145

)

(83,270,255

)

(13,249,468

)

Total operating expenses

 

(393,862,361

)

(394,585,415

)

(457,516,436

)

(72,797,295

)

Operating profit

 

193,854,240

 

155,175,587

 

109,417,366

 

17,409,840

 

Other income / (expenses)

 

 

 

 

 

 

 

 

 

Share of loss from equity investments

 

(485,958

)

(2,425,763

)

(4,430,549

)

(704,963

)

Interest income

 

21,618,355

 

27,861,314

 

19,169,167

 

3,050,084

 

Interest expense

 

(2,277,145

)

(7,847,932

)

(5,345,876

)

(850,604

)

Others, net

 

9,624,146

 

21,309,632

 

6,695,488

 

1,065,346

 

Total other income

 

28,479,398

 

38,897,251

 

16,088,230

 

2,559,863

 

Profit before tax

 

222,333,638

 

194,072,838

 

125,505,596

 

19,969,703

 

Income tax expense

 

(78,769,353

)

(38,113,968

)

(29,077,514

)

(4,626,641

)

Income from continuing operations, net of tax

 

143,564,285

 

155,958,870

 

96,428,082

 

15,343,062

 

Loss from discontinued operations, net of tax

 

(1,400,275

)

 

 

 

Net Income

 

142,164,010

 

155,958,870

 

96,428,082

 

15,343,062

 

Net loss / (income) attributable to the non-controlling interests

 

1,453,584

 

2,248,890

 

(10,269,331

)

(1,633,995

)

Net income attributable to the Company’s shareholders

 

143,617,594

 

158,207,760

 

86,158,751

 

13,709,067

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share, basic

 

 

 

 

 

 

 

 

 

Continuing operations

 

0.60

 

0.66

 

0.36

 

0.06

 

Discontinued operations

 

(0.01

)

0.00

 

0.00

 

0.00

 

Total earnings per share, basic

 

0.59

 

0.66

 

0.36

 

0.06

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share, diluted

 

 

 

 

 

 

 

 

 

Continuing operations

 

0.58

 

0.65

 

0.35

 

0.06

 

Discontinued operations

 

(0.01

)

0.00

 

0.00

 

0.00

 

Total earnings per share, diluted

 

0.57

 

0.65

 

0.35

 

0.06

 

 

 

 

 

 

 

 

 

 

 

Net earnings per ADS, basic

 

 

 

 

 

 

 

 

 

Continuing operations

 

2.99

 

3.28

 

1.78

 

0.28

 

Discontinued operations

 

(0.03

)

0.00

 

0.00

 

0.00

 

Total earnings per ADS, basic

 

2.96

 

3.28

 

1.78

 

0.28

 

 

 

 

 

 

 

 

 

 

 

Net earnings per ADS, diluted

 

 

 

 

 

 

 

 

 

Continuing operations

 

2.86

 

3.25

 

1.77

 

0.28

 

Discontinued operations

 

(0.03

)

0.00

 

0.00

 

0.00

 

Total earnings per ADS, diluted

 

2.83

 

3.25

 

1.77

 

0.28

 

 

 

 

 

 

 

 

 

 

 

Shares used in calculating basic net earnings per share

 

242,659,663

 

241,209,046

 

241,622,487

 

241,622,487

 

Shares used in calculating diluted net earnings per share

 

253,972,573

 

243,529,117

 

243,269,476

 

243,269,476

 

 

 

 

 

 

 

 

 

 

 

Amount attributable to the Company’s shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

144,967,632

 

158,207,760

 

86,158,751

 

13,709,067

 

Loss from discontinued operations, net of tax

 

(1,350,038

)

 

 

 

Net income

 

143,617,594

 

158,207,760

 

86,158,751

 

13,709,067

 

 

 

 

 

 

 

 

 

 

 

Total share-based compensation cost included in:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

(1,646,149

)

(1,089,992

)

(1,130,569

)

(179,889

)

Research and development expenses

 

(12,576,220

)

(8,345,586

)

(8,598,468

)

(1,368,137

)

Sales and marketing expenses

 

(3,935,862

)

(2,654,574

)

(2,730,279

)

(434,426

)

General and administrative expenses

 

(9,306,125

)

(5,216,569

)

(5,652,702

)

(899,424

)

 



 

Perfect World Co., Ltd.

Reconciliation of GAAP and Non-GAAP Results

 

 

 

Three months ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

 

 

2011

 

2012

 

2012

 

2012

 

 

 

RMB

 

RMB

 

RMB

 

USD

 

 

 

 

 

 

 

 

 

 

 

GAAP operating profit

 

193,854,240

 

155,175,587

 

109,417,366

 

17,409,840

 

Share based compensation charge

 

27,464,356

 

17,306,721

 

18,112,018

 

2,881,876

 

Non-GAAP operating profit

 

221,318,596

 

172,482,308

 

127,529,384

 

20,291,716

 

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to the Company’s shareholders

 

143,617,594

 

158,207,760

 

86,158,751

 

13,709,067

 

Share based compensation charge

 

27,464,356

 

17,306,721

 

18,112,018

 

2,881,876

 

Non-GAAP net income attributable to the Company’s shareholders

 

171,081,950

 

175,514,481

 

104,270,769

 

16,590,943

 

 

 

 

 

 

 

 

 

 

 

GAAP net earnings per ADS

 

 

 

 

 

 

 

 

 

- Basic

 

2.96

 

3.28

 

1.78

 

0.28

 

- Diluted

 

2.83

 

3.25

 

1.77

 

0.28

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net earnings per ADS

 

 

 

 

 

 

 

 

 

- Basic

 

3.53

 

3.64

 

2.16

 

0.34

 

- Diluted

 

3.37

 

3.60

 

2.14

 

0.34

 

 

 

 

 

 

 

 

 

 

 

ADSs used in calculating net earnings per ADS

 

 

 

 

 

 

 

 

 

- Basic

 

48,531,933

 

48,241,809

 

48,324,497

 

48,324,497

 

- Diluted

 

50,794,515

 

48,705,823

 

48,653,895

 

48,653,895