HONG KONG, March 26, 2012 /PRNewswire-Asia/ -- NetDragon Websoft Inc. ("NetDragon"; Stock Code: 777), a leading developer and operator of online games and mobile internet platforms in China, announced its financial results for the fourth quarter and fiscal year ended December 31, 2011 and is scheduled to hold a conference call and webcast on March 26, 2012 at 7:00pm Hong Kong Time / 7:00am Eastern Daylight Time to review the company's performance and recent business developments.
Fourth Quarter 2011 Financial and Operational Highlights
Fiscal Year 2011 Financial Highlights
Chairman's Statement
Mr. Liu Dejian, Chairman and Executive Director of NetDragon, commented, "2011 was a landmark year for NetDragon. Total revenues for the fourth quarter of 2011 exceeded RMB 217.2 million, marking our seventh consecutive quarter of top-line growth, while full-year revenue reached an all-time high of RMB 761.0 million. Significantly, our full-year net profit margin nearly tripled year-over-year. Through intelligent resource allocation and prudent cost-control measures, we were able to grow our businesses without sacrificing profitability."
Mr. Liu continued, "NetDragon managed to attract players with diverse preferences by constantly enriching our existing PC-based game portfolio and by expanding into games for mobile phones and tablets. As for our mobile internet business, thanks to the outstanding performance of both 91 PC Suite and Hi Market marketplaces along with a series of mobile application products, we were able to collaborate with many leading firms across the industry chain, and thereby fortify NetDragon's leading position in China's mobile internet market."
Mr. Liu concluded, "Looking forward, we expect NetDragon's core game products will continue to be a source of steady revenue, with revenue step-up potential lying in our pipeline. Meanwhile, our mobile internet business will reach a new stage in 2012. We plan to invest more in brand building in a move to scale up acquisition of new users and take an even more commanding position within the industry. By actively maintaining the value of its sales and distribution channels, we expect to realize more significant growth in revenue from the mobile internet business. Overall, we have full confidence in NetDragon's short-term development and in its long-term future. "
Fourth Quarter 2011 Business Highlights
Online Games
Mobile Internet
Other
Recent Developments & Business Outlook
Online Games
Mobile Internet
Metrics
Online Games
| 4Q 2011 | 3Q 2011 | 2Q 2011 | 1Q 2011 | 4Q 2010 | 3Q 2010 |
PCU | 612,000 | 569,000 | 643,000 | 546,000 | 542,000 | 589,000 |
ACU | 310,000 | 300,000 | 311,000 | 246,000 | 232,000 | 226,000 |
Management Conference Call
NetDragon will host a conference call and webcast to review its financial results for the fourth quarter and fiscal year 2011 ended December 31, 2011 and present an overview of its financial performance and business operations on Monday, March 26, 2012 Hong Kong time.
Details of the investor conference call are as follows:
Time: 7:00 PM Beijing / Hong Kong Time / 7:00 AM Eastern Daylight Time, March 26th, 2012
Dial in numbers:
International Toll | 65-6723-9381 |
US Toll Free | 1-86-6519-4004 |
Hong Kong Toll Free | 800-93-0346 |
Mainland China Toll Free (for fixed line users) | 800-819-0121 |
Mainland China Toll Free (for mobile users) | 400-620-8038 |
Passcode | NetDragon |
Replay service is available from 10:00 PM March 26th to 11:59 PM, April 2nd, 2012 HKT. Below are the replay numbers for different regions. International Toll: 612-8235-5000; US Toll Free: 1-86-6214-5335; Replay passcode: 60342901. 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 "4Q and Fiscal Year 2011 Results Conference Call" and follow the registration instructions.
About NetDragon
NetDragon Websoft Inc. 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 2004 in English, Spanish, Arabic and other languages. Our online games currently in development include Dungeon Keeper Online, TRANSFORMERS Online, and a new version of Ultima Online. In the mobile Internet industry, we provide China's leading marketplaces, sj.91.com and hiapk.com, which offer applications and content for the most popular mobile operating systems.
For further information please contact: | |
| |
NetDragon Websoft Inc. | |
Ms. Maggie Zhou | |
Investor Relations Director | |
Tel: | +86 591 8754 3120 |
| +86 591 8390 2825 |
Email: | |
| |
Website: |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||
FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED 31 DECEMBER 2011
| |||||||
| 4Q 2011 | 3Q 2011 |
| 2011 |
| 2010 | |
RMB '000 | RMB '000 | RMB '000 | RMB '000 | ||||
(Unaudited) | (Unaudited) | (Audited) | (Audited) | ||||
Revenue | 217,176 |
| 202,739 |
| 760,974 |
| 531,772 |
Cost of revenue | (28,337) |
| (18,043) |
| (75,032) |
| (66,333) |
Gross profit | 188,839 |
| 184,696 |
| 685,942 |
| 465,439 |
Other income and gains | 17,369 |
| 5,303 |
| 38,156 |
| 60,864 |
Selling and marketing expenses | (46,277) |
| (34,310) |
| (140,340) |
| (101,993) |
Administrative expenses | (59,529) |
| (55,946) |
| (210,941) |
| (182,022) |
Development costs | (47,387) |
| (36,280) |
| (159,269) |
| (162,234) |
Other expenses | (5,047) |
| (3,894) |
| (11,594) |
| (10,392) |
Loss on changes in fair value of conversion option derivative | (17,582) |
| (210) |
| (17,792) |
| - |
Finance costs | (3,490) |
| (316) |
| (3,806) |
| - |
Share of losses of associates | (439) |
| (65) |
| (581) |
| - |
|
|
|
|
|
|
|
|
Profit before taxation | 26,457 |
| 58,978 |
| 179,775 |
| 69,662 |
Taxation | (18,710) |
| (9,124) |
| (44,532) |
| (34,769) |
Profit for the period | 7,747 |
| 49,854 |
| 135,243 |
| 34,893 |
Other comprehensive (expenses) income: |
|
|
|
|
|
|
|
Exchange differences arising on translation of foreign operations | (171) |
| (734) |
| (1,452) |
| (172) |
Gain on property revaluation | - |
| - |
| - |
| 673 |
| (171) |
| (734) |
| (1,452) |
| 501 |
|
|
|
|
|
|
|
|
Total comprehensive income for the period | 7,576 |
| 49,120 |
| 133,791 |
| 35,394 |
Profit for the period attributable to: |
|
|
|
|
|
|
|
-Owners of the Company | 7,861 |
| 49,771 |
| 135,161 |
| 34,949 |
-Non-controlling interests | (114) |
| 83 |
| 82 |
| (56) |
| 7,747 |
| 49,854 |
| 135,243 |
| 34,893 |
Total comprehensive income attributable to: |
|
|
|
|
|
|
|
- Owners of the Company | 7,690 |
| 49,037 |
| 133,709 |
| 35,450 |
- Non-controlling interests | (114) |
| 83 |
| 82 |
| (56) |
| 7,576 |
| 49,120 |
| 133,791 |
| 35,394 |
|
|
|
|
|
|
|
|
Earnings per share | RMB cents |
| RMB cents |
| RMB cents |
| RMB cents |
- Basic | 1.53 |
| 9.48 |
| 25.85 |
| 6.64 |
- Diluted | 1.53 |
| 9.48 |
| 25.85 |
| 6.64 |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (AS AT 31 DECEMBER 2011)
| |||
| 2011(Audited) | 2010(Audited) | |
| RMB '000 |
| RMB '000 |
Non-current assets |
|
|
|
Property, plant and equipment | 192,119 |
| 128,534 |
Prepaid lease payments | 86,298 |
| 87,753 |
Investment property | 15,809 |
| 14,551 |
Deposit paid for acquisition of property, plant and equipment | 19,050 |
| 19,050 |
Intangible assets | 4,520 |
| 13,136 |
Interests in an associate | 12,669 |
| - |
Available-for-sale investments | 4,000 |
| 4,000 |
Loan receivables | 6,314 |
| 5,819 |
Deferred tax assets | 54 |
| 54 |
| 340,833 |
| 272,897 |
Current assets |
|
|
|
Prepaid lease payments | 1,784 |
| 1,784 |
Loan receivables | 1,091 |
| 893 |
Trade receivables | 41,555 |
| 24,393 |
Other receivables, prepayments and deposits | 41,429 |
| 40,072 |
Held for trading investments | - |
| 1,079 |
Amount due from a related company | 1,200 |
| 171 |
Bank deposits | 40,000 |
| 340,828 |
Bank balances and cash | 1,428,928 |
| 877,823 |
| 1,555,987 |
| 1,287,043 |
Current liabilities |
|
|
|
Trade payables | 5,001 |
| 519 |
Other payables and accruals | 121,353 |
| 58,218 |
Deferred income | 25,528 |
| 23,119 |
Amount due to a related company | 965 |
| - |
Amount due to shareholders | - |
| 5,328 |
Promissory notes | 30,623 |
| - |
Income tax payable | 42,849 |
| 21,599 |
| 226,319 |
| 108,783 |
|
|
|
|
Net current assets | 1,329,668 |
| 1,178,260 |
|
|
|
|
Total assets less current liabilities | 1,670,501 |
| 1,451,157 |
Non-current liabilities |
|
|
|
Redeemable convertible preferred shares | 131,675 |
| - |
Conversion option derivative liability | 39,932 |
| - |
| 171,607 |
| - |
|
|
|
|
Net assets | 1,498,894 |
| 1,451,157 |
|
|
|
|
Capital and reserves |
|
|
|
Share capital | 38,226 |
| 39,264 |
Share premium and reserves | 1,461,126 |
| 1,412,433 |
Equity attributable to owners of the Company | 1,499,352 |
| 1,451,697 |
Non-controlling interests | (458) |
| (540) |
Total equity | 1,498,894 |
| 1,451,157 |