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 August 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 ¨
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): ¨
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): ¨
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: August 28, 2012
2
EXHIBIT INDEX
| Page | ||||
| Exhibit 99.1 – Press release |
-1- | |||
3
Exhibit 99.1
PERFECT WORLD ANNOUNCES SECOND QUARTER 2012 UNAUDITED FINANCIAL RESULTS
(Beijing, China – August 27, 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 second quarter ended June 30, 2012.
Second Quarter 2012 Highlights1
| • | Total revenues were RMB676.4 million (USD106.5 million), as compared to RMB718.5 million in 1Q12 and RMB779.6 million in 2Q11. |
| • | Gross profit was RMB549.8 million (USD86.5 million), as compared to RMB591.4 million in 1Q12 and RMB665.9 million in 2Q11. |
| • | Operating profit was RMB155.2 million (USD24.4 million), as compared to RMB234.8 million in 1Q12 and RMB320.4 million in 2Q11. Non-GAAP operating profit2 was RMB172.5 million (USD27.1 million), as compared to RMB256.6 million in 1Q12 and RMB348.0 million in 2Q11. |
| • | Net income attributable to the Company’s shareholders was RMB158.2 million (USD24.9 million), as compared to RMB209.8 million in 1Q12 and RMB316.6 million in 2Q11. Non-GAAP net income attributable to the Company’s shareholders2 was RMB175.5 million (USD27.6 million), as compared to RMB231.6 million in 1Q12 and RMB344.3 million 2Q11. |
| • | Basic and diluted earnings per American Depositary Share (“ADS”)3 were RMB3.28 (USD0.52) and RMB3.25 (USD0.51), respectively, as compared to RMB4.52 and RMB4.38, respectively, in 1Q12, and RMB6.30 and RMB5.98, respectively, in 2Q11. Non-GAAP basic and diluted earnings per ADS2 were RMB3.64 (USD0.57) and RMB3.60 (USD0.57), respectively, as compared to RMB4.99 and RMB4.83, respectively, in 1Q12, and RMB6.86 and RMB6.50, respectively, in 2Q11. |
| • | In April 2012, the Company distributed a cash dividend of approximately USD98 million to its shareholders. |
Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, said, “Our second quarter results were in line with our previous expectations. During the quarter, as part of our consistent efforts to maintain healthy life cycles for our existing games, we continued to work on expansion packs and content enhancements. At the same time, we remained focused on further strengthening our deep and diversified pipeline.”
| 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 June 29, 2012, which was RMB6.3530 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. |
- 1 -
“Recently, we unveiled a new 3D MMORPG, ‘Legend of the Condor Heroes,’ which is currently under development in our pipeline. This title is adapted from one of Louis Cha’s most famous martial arts novels. Another game we adapted from Louis Cha’s acclaimed marital arts novel of the same name, ‘Return of the Condor Heroes,’ is scheduled for launch soon this year. With these and other exciting titles in our pipeline, including the highly-anticipated MMORPGs, ‘Swordsman Online’ and ‘Saint Seiya Online,’ we are looking forward to providing more exciting entertainment to our gamers worldwide.”
“I am pleased to announce that, in order to further enhance our execution capabilities, we have decided to create a new senior management position, Co-CEO, and promote our Chief Operating Officer, Mr. Robert Hong Xiao, to this new leadership position. In his new role, Robert will primarily focus on the execution of our business strategies through further enhancing the effectiveness and efficiency our operations. I will remain the Chairman of the Board of Directors while taking the new Co-CEO position, and primarily focus on setting strategic directions for Perfect World to capture new growth opportunities in this fast-changing industry.”
“Looking ahead, we will remain focused on the growth of our business and on continuing to generate value for our shareholders over time.”
Mr. Robert Hong Xiao, the newly appointed Co-CEO, added, “I am very excited to take on my new role in the Company, which allows me to work closely with our management and talented staff across the world and to help lead our business to evolve into a global leader in the online gaming industry. Thanks to the great efforts of our team, we have built a successful presence in overseas markets. As part of our globalization strategy, our high-quality R&D teams worldwide stand out as one of the key differentiating factors in the industry. For example, our well-known Cryptic Studios in the U.S. is developing the highly-anticipated MMORPG, ‘Neverwinter,’ bringing us additional world-class title. Our specialized production studios overseas, along with our well-established R&D teams in China, are playing an important role in our path to become a leading global online gaming company.”
“In terms of operational developments in overseas markets, we continued to make good progress in both our subsidiaries and licensing activities during the second quarter. Recently, we announced that our Japanese subsidiary signed an agreement to operate a 2D action MORPG, ‘Dark Blood,’ in Japan. We also signed additional licensing agreements and further expanded our geographical coverage to more countries, including Turkey and Azerbaijan.”
“Leveraging our strengths in our diverse portfolio and pipeline, strong global R&D capabilities, and extensive global operating network, we will continue our efforts to deliver more innovative, high-quality titles to entertain gamers in China and across the world.”
- 2 -
Second Quarter 2012 Financial Results
Total Revenues
Total revenues were RMB676.4 million (USD106.5 million) in 2Q12, as compared to RMB718.5 million in 1Q12 and RMB779.6 million in 2Q11.
Online game operation revenues, which include both domestic and overseas online game operations, were RMB626.4 million (USD98.6 million) in 2Q12, as compared to RMB665.1 million in 1Q12 and RMB712.1 million in 2Q11. In the second quarter, there were no major new launches and the Company continued its focus on preparing for its upcoming new game launches and further enhancing the content of its portfolio in order to lengthen the life cycles of existing games and maintain long-term sustainable growth.
The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 739,000 in 2Q12, as compared to 804,000 in 1Q12 and 890,000 in 2Q11. The decrease from 1Q12 was mainly due to more stringent anti-cheating efforts adopted by the Company during the second quarter.
Licensing revenues were RMB46.9 million (USD7.4 million) in 2Q12, as compared to RMB49.2 million in 1Q12 and RMB61.8 million in 2Q11. The decrease from 1Q12 was mainly due to a decrease in usage-based royalty fees in certain overseas markets in 2Q12.
Other revenues were RMB3.0 million (USD0.5 million) in 2Q12, as compared to RMB4.2 million in 1Q12 and RMB5.6 million in 2Q11.
Cost of Revenues
The cost of revenues was RMB126.6 million (USD19.9 million) in 2Q12, as compared to RMB127.1 million in 1Q12 and RMB113.7 million in 2Q11.
Gross Profit and Gross Margin
Gross profit was RMB549.8 million (USD86.5 million) in 2Q12, as compared to RMB591.4 million in 1Q12 and RMB665.9 million in 2Q11. Gross margin was 81.3% in 2Q12, as compared to 82.3% in 1Q12 and 85.4% in 2Q11.
Operating Expenses
Operating expenses were RMB394.6 million (USD62.1 million) in 2Q12, as compared to RMB356.6 million in 1Q12 and RMB345.5 million in 2Q11. The increase in operating expenses from 1Q12 was due to increases in sales and marketing expenses, R&D expenses, and general and administrative expenses in 2Q12.
R&D expenses were RMB189.7 million (USD29.9 million) in 2Q12, as compared to RMB179.4 million in 1Q12 and RMB161.0 million in 2Q11. The increase from 1Q12 was primarily due to an increase in staff cost.
Sales and marketing expenses were RMB121.8 million (USD19.2 million) in 2Q12, as compared to RMB101.4 million in 1Q12 and RMB121.4 million in 2Q11. Advertising and promotional expenses were reduced to a lower level in 1Q12 as the Company typically slowed down promotional activities during Chinese New Year.
- 3 -
General and administrative (“G&A”) expenses were RMB83.1 million (USD13.1 million) in 2Q12, as compared to RMB75.8 million in 1Q12 and RMB63.1 million in 2Q11. The increase from 1Q12 was mainly due to an increase in professional fees.
Operating Profit
Operating profit was RMB155.2 million (USD24.4 million) in 2Q12, as compared to RMB234.8 million in 1Q12 and RMB320.4 million in 2Q11. Non-GAAP operating profit was RMB172.5 million (USD27.1 million) in 2Q12, as compared to RMB256.6 million in 1Q12 and RMB348.0 million in 2Q11.
Total Other Income
Total other income was RMB38.9 million (USD6.1 million) in 2Q12, as compared to RMB21.0 million in 1Q12 and RMB30.9 million in 2Q11. Due to the fluctuation of the euro against the U.S. dollar, a foreign exchange gain was realized in 2Q12 while a foreign exchange loss was realized in 1Q12.
Income Tax Expense
Income tax expense was RMB38.1 million (USD6.0 million) in 2Q12, as compared to RMB47.8 million in 1Q12 and RMB38.6 million in 2Q11. The decrease from 1Q12 was primarily a result of the change in the operating profit in 2Q12.
Net Income Attributable to the Company’s Shareholders
Net income attributable to the Company’s shareholders was RMB158.2 million (USD24.9 million) in 2Q12, as compared to RMB209.8 million in 1Q12 and RMB316.6 million in 2Q11. Non-GAAP net income attributable to the Company’s shareholders was RMB175.5 million (USD27.6 million) in 2Q12, as compared to RMB231.6 million in 1Q12 and RMB344.3 million in 2Q11.
Basic and diluted earnings per ADS were RMB3.28 (USD0.52) and RMB3.25 (USD0.51), respectively, in 2Q12, as compared to RMB4.52 and RMB4.38, respectively, in 1Q12, and RMB6.30 and RMB5.98, respectively, in 2Q11. Non-GAAP basic and diluted earnings per ADS were RMB3.64 (USD0.57) and RMB3.60 (USD0.57), respectively, in 2Q12, as compared to RMB4.99 and RMB4.83, respectively, in 1Q12, and RMB6.86 and RMB6.50, respectively, in 2Q11.
Cash and Cash Equivalents
As of June 30, 2012, the Company had RMB964.1 million (USD151.7 million) of cash and cash equivalents, as compared to RMB1.4 billion as of March 31, 2012. The decrease was mainly due to the Company’s cash dividend payments in April and investments in certain structured deposits, and was partially offset by the net cash inflow generated from the Company’s online game operations.
Business Outlook
Based on the Company’s current operations, total revenues for the third quarter of 2012 are expected to be between RMB643 million and RMB676 million, representing a flat to slight decline from the second quarter of 2012. The Company’s upcoming new game “Return of the Condor Heroes” is scheduled for launch toward the end of the third quarter or in the fourth quarter. As such, the Company does not expect a significant revenue contribution from this game in the third quarter.
- 4 -
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 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.
Conference Call
Perfect World will host a conference call and live webcast at 9:00pm Eastern Daylight Time on Monday, August 27, 2012 (9:00am Beijing time on Tuesday, August 28, 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.
- 5 -
A telephone replay of the call will be available beginning two hours after the conclusion of the conference call through 11:59pm Eastern Time, September 4, 2012.
Dial-in numbers for the replay are as follows:
| - U.S. Toll Free Number | 1-866-214-5335 | |||
| - International Dial-in Number | +61-2-8235-5000 | |||
| Conference ID: 12945322 |
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 “Heaven Sword and Dragon Saber;” 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.
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 August 27, 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.
- 6 -
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
Teal Willingham
Tel: +86-10-5826-4988
Fax: +86-10-5826-4838
Email: twillingham@christensenir.com
- 7 -
Perfect World Co., Ltd.
Unaudited Consolidated Balance Sheets
| December 31, 2011 |
June 30, 2012 |
June 30, 2012 |
||||||||||
| RMB | RMB | USD | ||||||||||
| Assets |
||||||||||||
| Current assets |
||||||||||||
| Cash and cash equivalents |
2,150,213,495 | 964,054,595 | 151,747,929 | |||||||||
| Restricted cash |
535,500,431 | 1,192,305,752 | 187,676,020 | |||||||||
| Short-term investments |
139,517,875 | 841,630,375 | 132,477,629 | |||||||||
| Accounts receivable, net |
142,543,972 | 123,220,379 | 19,395,621 | |||||||||
| Due from related parties |
40,000 | 44,274 | 6,969 | |||||||||
| Prepayment and other assets |
94,628,466 | 152,395,925 | 23,988,025 | |||||||||
| Deferred tax assets |
27,130,068 | 26,021,435 | 4,095,929 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current assets |
3,089,574,307 | 3,299,672,735 | 519,388,122 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non current assets |
||||||||||||
| Equity investments |
33,384,729 | 226,185,424 | 35,602,932 | |||||||||
| Time deposits |
293,892,575 | 209,860,270 | 33,033,255 | |||||||||
| Restricted time deposits |
125,717,425 | 135,566,978 | 21,339,049 | |||||||||
| Property, equipment, and software, net |
1,259,850,498 | 1,222,845,279 | 192,483,123 | |||||||||
| Construction in progress |
4,793,214 | 6,669,789 | 1,049,864 | |||||||||
| Intangible assets, net |
273,193,489 | 252,409,200 | 39,730,710 | |||||||||
| Goodwill |
466,328,513 | 464,272,569 | 73,079,265 | |||||||||
| Due from related parties |
7,561,080 | 7,589,880 | 1,194,692 | |||||||||
| Prepayments and other assets |
62,457,484 | 58,660,213 | 9,233,467 | |||||||||
| Deferred tax assets |
35,235,313 | 35,317,378 | 5,559,165 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
5,651,988,627 | 5,919,049,715 | 931,693,644 | |||||||||
|
|
|
|
|
|
|
|||||||
| Liabilities and Shareholders’ Equity |
||||||||||||
| Current liabilities |
||||||||||||
| Accounts payable |
89,123,596 | 79,687,758 | 12,543,329 | |||||||||
| Short-term bank loans |
560,780,100 | 1,163,781,600 | 183,186,148 | |||||||||
| Advances from customers |
95,921,079 | 90,374,836 | 14,225,537 | |||||||||
| Salary and welfare payable |
204,976,567 | 126,066,331 | 19,843,591 | |||||||||
| Taxes payable |
43,236,335 | 47,791,817 | 7,522,716 | |||||||||
| Accrued expenses and other liabilities |
68,663,124 | 54,626,521 | 8,598,539 | |||||||||
| Due to related parties |
155,000 | 532,500 | 83,819 | |||||||||
| Deferred revenues |
461,921,174 | 463,909,437 | 73,022,106 | |||||||||
| Deferred tax liabilities |
106,933,061 | 60,629,526 | 9,543,448 | |||||||||
| Deferred government grants |
579,526 | 579,526 | 91,221 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current liabilities |
1,632,289,562 | 2,087,979,852 | 328,660,454 | |||||||||
| Deferred revenues |
17,481,338 | 9,708,065 | 1,528,107 | |||||||||
| Deferred tax liabilities |
8,005,954 | 7,756,222 | 1,220,875 | |||||||||
| Other long-term liabilities |
8,803,103 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
1,666,579,957 | 2,105,444,139 | 331,409,436 | |||||||||
|
|
|
|
|
|
|
|||||||
| 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, 211,902,185 Class B ordinary shares issued and outstanding as of June 30, 2012) |
186,948 | 193,661 | 30,483 | |||||||||
| Additional paid-in capital |
212,421,037 | 293,301,380 | 46,167,382 | |||||||||
| Statutory reserves |
268,014,793 | 270,581,391 | 42,591,121 | |||||||||
| Accumulated other comprehensive loss |
(60,430,695 | ) | (69,634,947 | ) | (10,960,955 | ) | ||||||
| Retained earnings |
3,538,087,071 | 3,295,941,336 | 518,800,777 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Perfect World Shareholders’ Equity |
3,958,279,154 | 3,790,382,821 | 596,628,808 | |||||||||
| Non-controlling interests |
27,129,516 | 23,222,755 | 3,655,400 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Shareholders’ Equity |
3,985,408,670 | 3,813,605,576 | 600,284,208 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities and Shareholders’ Equity |
5,651,988,627 | 5,919,049,715 | 931,693,644 | |||||||||
|
|
|
|
|
|
|
|||||||
Perfect World Co., Ltd.
Unaudited Consolidated Statements of Operations
| Three months ended | ||||||||||||||||
| June 30, 2011 |
March 31, 2012 |
June 30, 2012 |
June 30, 2012 |
|||||||||||||
| RMB | RMB | RMB | USD | |||||||||||||
| Revenues |
||||||||||||||||
| Online game operation revenues |
712,140,470 | 665,107,654 | 626,444,057 | 98,606,022 | ||||||||||||
| Licensing revenues |
61,811,353 | 49,176,306 | 46,923,638 | 7,386,060 | ||||||||||||
| Other revenues |
5,611,845 | 4,185,651 | 3,042,555 | 478,916 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Revenues |
779,563,668 | 718,469,611 | 676,410,250 | 106,470,998 | ||||||||||||
| Cost of revenues |
(113,683,909 | ) | (127,094,533 | ) | (126,649,248 | ) | (19,935,345 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
665,879,759 | 591,375,078 | 549,761,002 | 86,535,653 | ||||||||||||
| Operating expenses |
||||||||||||||||
| Research and development expenses |
(160,973,079 | ) | (179,352,350 | ) | (189,673,612 | ) | (29,855,755 | ) | ||||||||
| Sales and marketing expenses |
(121,441,164 | ) | (101,365,434 | ) | (121,773,658 | ) | (19,167,898 | ) | ||||||||
| General and administrative expenses |
(63,110,431 | ) | (75,845,841 | ) | (83,138,145 | ) | (13,086,439 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
(345,524,674 | ) | (356,563,625 | ) | (394,585,415 | ) | (62,110,092 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating profit |
320,355,085 | 234,811,453 | 155,175,587 | 24,425,561 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other income / (expenses) |
||||||||||||||||
| Share of loss from equity investments |
(480,023 | ) | (4,874,875 | ) | (2,425,763 | ) | (381,830 | ) | ||||||||
| Interest income |
15,398,582 | 25,186,496 | 27,861,314 | 4,385,537 | ||||||||||||
| Interest expense |
— | (4,304,723 | ) | (7,847,932 | ) | (1,235,311 | ) | |||||||||
| Others, net |
16,013,083 | 4,993,894 | 21,309,632 | 3,354,263 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total other income |
30,931,642 | 21,000,792 | 38,897,251 | 6,122,659 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Profit before tax |
351,286,727 | 255,812,245 | 194,072,838 | 30,548,220 | ||||||||||||
| Income tax expense |
(38,610,452 | ) | (47,793,602 | ) | (38,113,968 | ) | (5,999,365 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations, net of tax |
312,676,275 | 208,018,643 | 155,958,870 | 24,548,855 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from discontinued operations, net of tax |
2,913,169 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income |
315,589,444 | 208,018,643 | 155,958,870 | 24,548,855 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to the non-controlling interests |
1,028,058 | 1,818,039 | 2,248,890 | 353,989 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to the Company’s shareholders |
316,617,502 | 209,836,682 | 158,207,760 | 24,902,844 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net earnings per share, basic |
||||||||||||||||
| Continuing operations |
1.25 | 0.90 | 0.66 | 0.10 | ||||||||||||
| Discontinued operations |
0.01 | 0.00 | 0.00 | 0.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total earnings per share, basic |
1.26 | 0.90 | 0.66 | 0.10 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net earnings per share, diluted |
||||||||||||||||
| Continuing operations |
1.19 | 0.88 | 0.65 | 0.10 | ||||||||||||
| Discontinued operations |
0.01 | 0.00 | 0.00 | 0.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total earnings per share, diluted |
1.20 | 0.88 | 0.65 | 0.10 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net earnings per ADS, basic |
||||||||||||||||
| Continuing operations |
6.24 | 4.52 | 3.28 | 0.52 | ||||||||||||
| Discontinued operations |
0.06 | 0.00 | 0.00 | 0.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total earnings per ADS, basic |
6.30 | 4.52 | 3.28 | 0.52 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net earnings per ADS, diluted |
||||||||||||||||
| Continuing operations |
5.92 | 4.38 | 3.25 | 0.51 | ||||||||||||
| Discontinued operations |
0.06 | 0.00 | 0.00 | 0.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total earnings per ADS, diluted |
5.98 | 4.38 | 3.25 | 0.51 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares used in calculating basic net earnings per share |
251,125,364 | 231,891,308 | 241,209,046 | 241,209,046 | ||||||||||||
| Shares used in calculating diluted net earnings per share |
264,660,034 | 239,767,544 | 243,529,117 | 243,529,117 | ||||||||||||
| Amount attributable to the Company’s shareholders: |
||||||||||||||||
| Income from continuing operations, net of tax |
313,553,624 | 209,836,682 | 158,207,760 | 24,902,844 | ||||||||||||
| Income from discontinued operations, net of tax |
3,063,878 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
316,617,502 | 209,836,682 | 158,207,760 | 24,902,844 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total share-based compensation cost included in: |
||||||||||||||||
| Cost of revenues |
(1,674,220 | ) | (1,550,317 | ) | (1,089,992 | ) | (171,571 | ) | ||||||||
| Research and development expenses |
(12,205,194 | ) | (11,243,450 | ) | (8,345,586 | ) | (1,313,645 | ) | ||||||||
| Sales and marketing expenses |
(4,105,454 | ) | (2,336,895 | ) | (2,654,574 | ) | (417,846 | ) | ||||||||
| General and administrative expenses |
(9,700,386 | ) | (6,668,486 | ) | (5,216,569 | ) | (821,119 | ) | ||||||||
Perfect World Co., Ltd.
Reconciliation of GAAP and Non-GAAP Results
| Three months ended | ||||||||||||||||
| June 30, 2011 |
March 31, 2012 |
June 30, 2012 |
June 30, 2012 |
|||||||||||||
| RMB | RMB | RMB | USD | |||||||||||||
| GAAP operating profit |
320,355,085 | 234,811,453 | 155,175,587 | 24,425,561 | ||||||||||||
| Share based compensation charge |
27,685,254 | 21,799,148 | 17,306,721 | 2,724,181 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP operating profit |
348,040,339 | 256,610,601 | 172,482,308 | 27,149,742 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP net income attributable to the Company’s shareholders |
316,617,502 | 209,836,682 | 158,207,760 | 24,902,844 | ||||||||||||
| Share based compensation charge |
27,685,254 | 21,799,148 | 17,306,721 | 2,724,181 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP net income attributable to the Company’s shareholders |
344,302,756 | 231,635,830 | 175,514,481 | 27,627,025 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP net earnings per ADS |
||||||||||||||||
| - Basic |
6.30 | 4.52 | 3.28 | 0.52 | ||||||||||||
| -Diluted |
5.98 | 4.38 | 3.25 | 0.51 | ||||||||||||
| Non-GAAP net earnings per ADS |
||||||||||||||||
| -Basic |
6.86 | 4.99 | 3.64 | 0.57 | ||||||||||||
| -Diluted |
6.50 | 4.83 | 3.60 | 0.57 | ||||||||||||
| ADSs used in calculating net earnings per ADS |
||||||||||||||||
| -Basic |
50,225,073 | 46,378,262 | 48,241,809 | 48,241,809 | ||||||||||||
| -Diluted |
52,932,007 | 47,953,509 | 48,705,823 | 48,705,823 | ||||||||||||