Giant $59.9 million net profit rose 19.6% in the second quarter

the giant network (nyse trading code: GA) today issued ended June 30, 2013 unaudited earnings in the second quarter. , according to data from the second quarter revenue of 588.1 million yuan ($95.8 million), rose 2.7%, year-on-year growth of 11.3%; Belong to shareholder’s net income of 367.6 million yuan ($59.9 million), up 12.7% from the previous quarter of 326 million yuan, 307.2 million yuan rose 19.6% from a year earlier.

in the second quarter of 2013 points:

? In the second quarter of 2013 net revenue of 588.1 million yuan ($95.8 million), rose 2.7%, up 11.3% from a year earlier.

? In the second quarter of 2013 gross profit of 2013 yuan ($84.2 million), rose 5.4%, up 12.1% from a year earlier. In the second quarter of 2013 gross margin of 87.9%.

? In the second quarter of 2013 belong to shareholder’s net income of 367.6 million yuan ($59.9 million), rose 12.7%, up 19.6% from a year earlier. In the second quarter of 2013 net profit margin of 62.5%.

? In the second quarter of 2013 per American depositary receipts (ADS) or a net gain for the basic and diluted shares were 1.53 yuan ($0.25) and 1.49 yuan ($0.24), the last quarter were 1.36 yuan and 1.32 yuan, the same period last year were 1.30 yuan and 1.30 yuan.

? In the second quarter of 2013 Non – GAAP belong to shareholder’s net income of 383.5 million yuan ($62.5 million), rose 11.9%, up 13.0% from a year earlier. In the second quarter of 2013 Non – GAAP net profit margin of 65.2%.

? In the second quarter of 2013 Non – GAAP basic and diluted earnings per share were 1.60 yuan ($0.26) and 0.26 yuan ($0.25), the last quarter were 1.43 yuan and 1.39 yuan, the same period last year were 1.43 yuan and 1.40 yuan.

? In the second quarter of 2013 online games active paid accounts (” APA “) reached $2328000, rose by 3.1%, up 5.0% year-on-year.

? Average subscribers in the second quarter of 2013 online game revenue (ARPU) is RMB 244 yuan, up 2.5%, up 4.8% year-on-year.

? In the second quarter of 2013 online games, on average, at the same time, the number of online gamers (ACU) for 702000, rose by 1.8%, up 2.5% year-on-year.

? In the second quarter of 2013 online games the highest at the same time, the number of online gamers (PCU) for 2319000, rose by 1.6%, up 0.5% year-on-year.

about the net income from the GAAP principles of attribution shareholders measurement to use Non – GAAP standards between the reconciliation, please see table on page 6.

the giant network CEO ms liu wei said: “we are very pleased that the company’s latest flagship MMO” XianXia world “in the second quarter, success to open officially closed. The game attracted a large number of players, high recognition and won the players. Company has confidence in the fall of this year’s demo, will “XianXia world” to a new height.

“XianXia world” is an important part of company MMO strategy, its private success of giant network continue to push forward the high-quality goods end strategy is of great significance. Future MMO game will still be the core of the company’s business, as well as the main source of revenue. MMO market in China, the giant network has always been to play and charge mode is famous for its innovative ability. Competitors swim and mobile game business, pay more attention to page reduces MMO market competition, and further enhance the market share for us to provide the better opportunity. “XianXia world” success proves that our determination to continue to develop MMO business, as well as the outside of the “journey” brand makes the high-quality goods, deepening the strength of the product line development.

in the fast-growing page move and hand and business development aspects, we also went smoothly. Company plans to launch two independent research and development in the second half of the page and at least one since research mobile game. I hope by the end of the new games can begin to contribute to the company’s overall revenue, and continued to provide diversified sources of income for the company in the future.

in terms of agency business, we are very pleased to announce the giant network won the “sky 2” in mainland China the sole agency. This is a from south Korean Wemade Entertainment Inc., research and development of three dmmorpg masterpiece. The current research and development team are working together on both sides, is creating localized version, designed for Chinese players hope to officially launched in China next year. In addition, we will continue to actively looking for other overseas boutique was blowing agent opportunity, in the research on the company product line has a very good supplement.

in the end, to reiterate the company continues to reward shareholders, the company announced the plan according to the new semi-annual dividend for the first time the dividend, $0.23 a share.”

2013 in the second quarter unaudited financial results

net revenue

the giant network in the second quarter of 2013 net revenue of 588.1 million yuan ($95.8 million), 572.8 million yuan from the previous quarter rose by 2.7%; 528.2 million yuan rose 11.3% from a year earlier.

the giant network in the second quarter of 2013 online game net revenue of 578.4 million yuan ($94.2 million), 557.3 million yuan from the previous quarter rose by 3.8%; Up 14.3% from last year’s 505.9 million people. Largely due to the sequential and compared to the same “XianXia world” officially open beta testing.

the giant network in the second quarter of 2013 network game of the APA is 2328000, rose by 3.1%, up 5.0% year-on-year. APA largely due to the previous “XianXia world” open officially closed, rose is mainly due to the growth of the journey series and the contribution of “XianXia world”. In the second quarter of 2013 online games of ARPU is RMB 244 yuan, up 2.5%, rose 4.8% from a year. ARPU rose and rose, mainly thanks to “journey 2 with players in the game to upgrade the cost increase. In the second quarter of 2013 online games ACU for 702000, rose by 1.8%, rose 2.5% from a year. ACU rose and rose are mostly thanks to “XianXia world”. In the second quarter of 2013 the company network game PCU 2319000, rose by 1.6%, rose 0.5% from a year. PCU rose and rose is mainly thanks to “XianXia world”.

main business cost

the giant network in the second quarter of 2013 the main business cost is 71.1 million yuan ($11.6 million), fell 13.7%, rose 6.0%. Month-on-month decline is mainly due to the agent in the first quarter of 2013 game related cost is higher, rose is mainly due to the overall growth of the company.

gross profit and gross margin

the giant network in the second quarter of 2013 gross profit of 517 million yuan ($84.2 million), rose by 5.4%, up 12.1% year-on-year. The giant network in the second quarter of 2013 gross margin of 87.9%, compared with the previous quarter and 87.3% in the same period last year rose 85.6%.

operating expenses

the giant network in the second quarter of 2013 the total operating cost for 159.4 million yuan ($26 million), 129.6 million yuan from the previous quarter rose 23.0%, to 133.2 million yuan rose 19.7% from a year earlier. In the second quarter of 2013 operating costs at 27.1% of total revenue, compared with 22.6% in the first quarter, on the same period last year 25.2%. Operating expenses rose by mainly because of the increased cost of sales and marketing; Operating costs rose in the second quarter of 2013, mainly because of this quarter, compared with the same period last year the government subsidies, less marketing costs rise at the same time.

the giant network in the second quarter of 2013 product research and development cost is 80.8 million yuan ($13.2 million), 77.6 million yuan from the previous quarter rose 4.1%, unchanged from a year earlier. In the second quarter of 2013 r&d spending to 13.7% of total revenue, compared with 13.5% in the first quarter, on the same period last year 15.3%. R&d spending rose by mainly because XianXia world r&d project prize recognized; Flat year-on-year mainly because the company research and development and compensation levels increase in ascension, but compared with the same options cost reduction, this is mainly because of restricted shares issued to the end of 2011 in the accelerated amortization accounting.

the giant network sales and marketing expenses in the second quarter of 2013 to 54 million yuan ($8.8 million), up 77.9% from the previous quarter of 30.3 million yuan, 47.7 million yuan rose 13.2% from a year earlier. In the second quarter of 2013 sales and marketing costs accounted for 9.2% of the total revenue, on the proportion of 5.3% in the first quarter, up from 9.0% a year ago. Marketing costs rose and rose mainly because “XianXia world” officially closed.

the management cost for the giant network in the second quarter of 2013, 34.6 million yuan ($5.6 million), up 9.4% from the previous quarter of 31.6 million yuan, down 9.4% compared with 38.2 million yuan during the same period last year. In the second quarter of 2013 management fees accounted for 5.9% of the total revenue, on the proportion of 5.5% in the first quarter, up from 7.2% a year ago. Management fees from rising mainly because of the quarter and the company SEC annual report related consulting fee increase; Year-on-year decline is mainly due to relevant personnel of the option premium decrease with the (reason).

government subsidies

the giant network in the second quarter of 2013 the government subsidies of 10 million yuan ($1.6 million), mainly is the part of the business tax, value-added tax and enterprise income tax return. Tax is regarded as operating expense deduction.

Interest income

the giant network in the second quarter of 2013 the interest income of 45.6 million yuan ($7.4 million), 25 million yuan from the previous quarter increased by 82.6%, compared with 25.6 million yuan during the same period last year increased by 77.8%. Interest income from increase is mainly due to a held-to-maturity investment at the end of the second quarter of 2013 early termination, and recognize the relevant interest; And rose is due to the held-to-maturity investment produces the related interest, as well as the growth of the company’s cash.

income tax expenses

the giant network in the second quarter of 2013 of the income tax expenses for 10.4 million yuan ($1.7 million), in the last quarter of 48 million yuan, in the same period last year to 36.3 million yuan. Income tax expenses rose and fell mainly because of a subsidiary corporate income tax rate from 15% in 2012 to 15% of income tax expenses to reduce, the adjustment in the second quarter of 2013 to complete.

belong to shareholder’s net income

the giant network in the second quarter of 2013 belong to shareholder’s net income of 367.6 million yuan ($59.9 million), up 12.7% from the previous quarter of 326 million yuan, 307.2 million yuan rose 19.6% from a year earlier. Net profit rose and rose is largely due to the growth of the company’s overall business, this season is higher interest income and low income tax expenses. The giant network in the second quarter of 2013 belong to shareholders net interest rate of 62.5%, last quarter was 56.9%, up from 58.2% a year ago.

in the second quarter of 2013 Non – GAAP belong to shareholders net income of 383.5 million yuan ($62.5 million), up 11.9% compared with the previous quarter to 342.7 million yuan, up 13.0% to 339.4 million yuan from a year earlier. In the second quarter of 2013 Non – GAAP net profit margin was 65.2%, in the last quarter was 59.8%, up from 64.3% a year ago. About the net income from the GAAP principles of attribution shareholders measurement to use Non – GAAP standards between the adjustment, please see the table on page 6 and description.

cash, cash equivalents and short-term investments

as of June 30, 2013, the giant’s cash, cash equivalents and short-term investment value of 3.3377 billion yuan ($543.8 million). As of March 31, 2013 is about 3.0055 billion yuan, up mainly due to the growth of the company’s business cash flow increase.

cash dividend

the giant network announced to December 12, 2013, the New York stock exchange at the end of the registered holding shareholders half a cash dividend of $0.23 per share, the company expects total amount of the cash dividend payment of $55.1 million. Specific amount and date will be subject to approval by the board of directors through, and comply with relevant laws and regulations.

The latest progress in game

journey 2 – “journey 2” in the second quarter, enriched the last expansion players love the game, such as big area, grade, etc, to meet the different needs of all kinds of players, the players well. “Journey 2 plans to release a new expansion in the third quarter of 2013, will add new jobs and new skills, and on a large scale of old players recall activities.

XianXia world – “XianXia world” officially opened in April 19, 2013 closed, after market performance more than expected. nullnullnullnullnullnullnullnullnull