SHANGHAI, Nov. 13, 2012 /PRNewswire-FirstCall/
-- Giant Interactive Group Inc. (NYSE: GA) ("Giant" or the
"Company"), one of China's leading
online game developers and operators, announced today its unaudited
financial results for the third fiscal quarter ended September 30, 2012.
Third Quarter 2012 Highlights as
Compared to Second Quarter 2012 ("QoQ") and Third
Quarter 2011 ("YoY"):
- Net revenue was RMB543.2 million
(US$86.4 million), up 2.8% QoQ and up
18.6% YoY.
- Gross profit was RMB468.1 million
(US$74.5 million), up 1.5% QoQ and up
18.6% YoY. Gross profit margin for the third quarter 2012 was
86.2%.
- Net income attributable to the Company's shareholders was
RMB311.7 million (US$49.6million), up 1.4% QoQ and down 13.7% YoY.
The margin of net income attributable to the Company's shareholders
for the third quarter 2012 was 57.4%.
- Basic and diluted earnings per American Depositary Share
("ADS") which represents one ordinary share, were RMB1.32 (US$0.21)
and RMB1.28 (US$0.20), respectively, compared to basic and
diluted earnings per ADS of RMB1.30
and RMB1.26, respectively, for the
second quarter 2012, and basic and diluted earnings per ADS of
RMB1.54 and RMB1.53, respectively, for the third quarter
2011.
- Non-GAAP net income attributable to the Company's shareholders
was RMB342.5 million (US$54.5 million), up 0.9% QoQ and 20.2% YoY. The
margin of non-GAAP net income attributable to the Company's
shareholders was 63.0%.
- Basic and diluted non-GAAP earnings per ADS were RMB1.45 (US$0.23)
and RMB1.41 (US$0.22), respectively, compared to basic and
diluted non-GAAP earnings per ADS of RMB1.43 and RMB1.40, respectively, for the second quarter
2012, and basic and diluted non-GAAP earnings per ADS of
RMB1.22 and RMB1.21, respectively, for the third quarter
2011.
- Active Paying Accounts ("APA") for online games was 2,241,000,
up 1.1% QoQ and up 7.4% YoY.
- Average Revenue Per User ("ARPU") for online games was
RMB238, up 2.4% QoQ and up 9.6%
YoY.
- Average Concurrent Users ("ACU") for online games was 694,000,
up 1.3% QoQ and up 4.9% YoY.
- Peak Concurrent Users ("PCU") for online games was 2,328,000,
up 0.9% QoQ and up 1.4% YoY.
Please refer to the table on page 8 for a reconciliation between
net income attributable to the Company's shareholder on a GAAP to
non-GAAP basis.
Mr. Yuzhu Shi, Giant's Chairman
and Chief Executive Officer commented, "Our solid third quarter
results reflect the strength of our expanded MMO game portfolio.
Overall, we are pleased to see our underlying businesses perform
well, especially with respect to our diversification efforts.
"While the largest portion of our revenue is still based on the
ZT Online 1 Series, we are seeing promising results
from our portfolio diversification strategy implemented over the
past year. For example, ZT Online 2 has emerged as a key
revenue growth driver. In addition, ZT Online 2's micro-client
version, which successfully launched in September 2012, is now acquiring new users every
day and, as we expected, is already contributing to revenue. We
have also bolstered our MMORPG pipeline with titles such as
World of Xianxia. The positive feedback we received
from the engineering testing of such game in September 2012 indicates its potential to be
another blockbuster game, and demonstrates the Company's superior
MMORPG development capabilities to continue creating products that
attract hardcore gamers. Besides MMORPGs, we have made substantial
progress in games under brand new genres such as the recent release
of an upgraded single-player campaign version of Glorious
Mission, which has exceeded our expectations by attracting over
a million downloads. We believe these strong third quarter results
offer a first look at the new revenue growth profile based on which
we expect our future earnings and growth.
"As a pivotal business initiative, we have also made progress
developing our webgame pipeline, which is part of our
diversification efforts. For example, we anticipate the commercial
launch of two webgames in the first quarter 2013. Even as we invest
in growing our business by introducing new game types, while also
exploring new markets and user bases, we continue to successfully
maintain growth rates and profitability that exceed the industry
average.
"Finally, our Company is positioned for long-term growth as we
continue to exercise our multi-year plan to broaden our user base
by diversifying our game portfolio, increasing our distribution
through the leveraging of our strong relationships with internet
platform partners, and increasing our geographic footprint through
developing and licensing innovative new games. I have never been
more excited about the future of Giant and am confident that the
new games in our pipeline will enable us to reach new levels of
success and growth."
Third Quarter Fiscal 2012 Unaudited
Financial Results
Net Revenue. Net revenue for the third
quarter 2012 was RMB543.2 million
(US$86.4 million), representing a
2.8% increase from RMB528.2 million
in the second quarter 2012, and an 18.6% increase from RMB457.9 million in the third quarter 2011.
Revenue from online games in the third quarter 2012 totaled
RMB523.8 million (US$83.3 million), representing a 3.5% increase
from RMB505.9 million in the second
quarter 2012, and an 18.0% increase from RMB443.9 million in the third quarter 2011. The
sequential and year-over-year increases in online game net revenue
were mainly due to the growth of the ZT Online
franchise.
APA for online games in the third quarter 2012 was to 2,241,000,
representing a 1.1% sequential increase and a 7.4% increase over
the third quarter 2011. The sequential and year-over-year increases
in APA were mainly due to an increase in ZT Online 2
users. ARPU for online games in the third quarter 2012 was
RMB238, representing a 2.4%
sequential increase and a 9.6% increase over the third quarter
2011. The slight sequential and year-over-year increases in ARPU
were due to ZT Online 2 users spending more as they progress
through the game. ACU for online games in the third quarter 2012
was 694,000, representing a 1.3% sequential increase and a 4.9%
increase over the third quarter 2011. PCU for online games in the
third quarter 2012 was 2,328,000, representing a 0.9% sequential
increase and a 1.4% increase over the third quarter 2011. The
slight sequential and year-over-year increases in ACU and PCU were
mainly due to the continual popularity of the ZT Online
franchise.
Cost of Services. Cost of services for the
third quarter 2012 was RMB75.1
million (US$12.0 million),
representing a 12% increase from the second quarter 2012 and an
18.7% increase from the third quarter 2011. The sequential and
year-over-year increases in cost of services were mainly due to an
increase in value-added tax payable as a result of increased game
card sales to distributors in connection with a holiday promotion,
and an increase in compensation for technical operations and
customer service staff.
Gross Profit and Gross Margin. Gross profit
for the third quarter 2012 was RMB468.1
million (US$74.5million),
representing a 1.5% increase from the second quarter 2012 and an
18.6% increase from the third quarter 2011. Gross margin for the
third quarter 2012 was 86.2%, down from 87.3% in the second quarter
2012, and remained flat compared with the third quarter
2011.
Operating Expenses. Total operating expenses for
the third quarter 2012 were RMB141.7
million (US$22.6 million),
representing a 6.4% increase from RMB133.2
million in the second quarter 2012 and a 24.7% increase from
RMB113.7 million in the third quarter
2011. As a percentage of revenue, total operating expenses were
26.1% for the third quarter 2012, compared to 25.2% in the second
quarter 2012 and 24.8% in the third quarter 2011. The
sequential increase in operating expenses was mainly attributable
to a decrease in financial incentives received from the government,
which are recorded as an offset to operating expenses. The
year-over-year increase was mainly due to share-based compensation
expenses related to restricted shares granted at the end of
November 2011, as well as the general
increase in cash compensation including raises and performance
based bonuses.
Research and product development ("R&D") expenses for the
third quarter 2012 was RMB76.1
million (US$12.1 million),
representing a 5.6% decrease from RMB80.6
million in the second quarter 2012 and a 55.5% increase from
RMB48.9 million in the third quarter
2011. As a percentage of revenue, R&D expenses were 14.0% for
the third quarter 2012, compared to 15.3% in the second quarter
2012 and 10.7% in the third quarter 2011. The sequential decrease
in R&D expenses was mainly attributable to higher expenses in
the second quarter 2012 associated with certain game projects that
were no longer being capitalized, and the lack of such expenses in
the third quarter 2012. The year-over-year increase was primarily
due to increased compensation for R&D employees and share-based
compensation expenses related to restricted shares granted at the
end of November 2011.
Sales and marketing ("S&M") expenses for the third quarter
2012 were RMB37.4 million
(US$5.9 million), representing a
21.6% decrease from RMB47.7 million
in the second quarter 2012, and a 24.7% decrease from RMB49.6 million in the third quarter 2011. As a
percentage of revenue, S&M expenses were 6.9% in the third
quarter 2012, compared to 9.0% in the second quarter 2012 and 10.8%
in the third quarter 2011. The sequential decrease in S&M
expenses was due to the higher marketing expenses incurred in the
second quarter 2012 to promote the first expansion pack of ZT
Online 2. The year-over-year decrease in S&M expenses was
due to marketing expenses incurred in the third quarter 2011
related to the open beta testing of ZT Online 2.
General and administrative expenses ("G&A") for the third
quarter 2012 were RMB38.3 million
(US$6.1 million), representing a 0.3%
increase from RMB38.2 million in the
second quarter 2012, and a 52.2% increase from RMB25.2 million in the third quarter 2011. As a
percentage of revenue, G&A expenses were 7.0% in the third
quarter 2012, compared to 7.2% in the second quarter 2012 and 5.5%
in the third quarter 2011. The sequential increase in G&A
expenses was minimal, and the year-over-year increase was mainly
attributable to the share-based compensation expenses related to
the restricted shares granted at the end of November 2011.
Government Financial Incentives. The
government financial incentives, which mainly relate to the refund
of business tax, value-added tax, and enterprise income tax from
the Shanghai municipal government,
was RMB10.0 million (US$1.6 million) in the third quarter 2012. The
Company records these government financial incentives as a
reduction in operating expenses.
Interest Income. Interest income for the
third quarter 2012 was RMB31.3
million (US$5.0 million),
representing a 21.9% increase from RMB25.6
million in the second quarter 2012, and a 20.9% decrease
from RMB39.5 million in the third
quarter 2011. The sequential increase in interest income was mainly
due to the growing cash balance and higher returns on several
short-term investments during the current quarter, while the
year-over-year decrease was due to the
Company's lower cash balances after
the payment of the one-time
special cash dividend of US$707.9 million or US$3.00 per ADS or ordinary share in September 2011.
Income Tax. Income tax expense for the third
quarter 2012 was RMB30.9 million
(US$4.9 million), compared to income
tax expense of RMB36.3 million in the
second quarter 2012 and income tax benefit of RMB19.3 million in the third quarter 2011. Income
tax expense decreased sequentially mainly due to a decrease in our
consolidated effective tax rate, but increased year-over-year
due to the recognition of RMB63.0
million in deferred tax assets (an increase in deferred tax
asset on the balance sheet and a corresponding income tax benefit
on the income statement) in the third quarter 2011.
Net Income Attributable to the Company's
Shareholders. Net income attributable to the
Company's shareholders for the third quarter 2012 was RMB311.7 million (US$49.6
million), representing a 1.4% increase from RMB307.2 million in the second quarter 2012, and
a 13.7% decrease from RMB361.3
million in the third quarter 2011. The sequential increase
in net income attributable to the Company's shareholders was mainly
due to the increase in online game revenue, partially offset by the
decrease in government financial incentives. The year-over-year
decrease was a result of (a) a significant increase in income tax
expense, which reflected an income tax benefit in the third quarter
of 2011 due to the one-time recognition of RMB63.0 million in deferred tax assets, (b) a
decrease in other income of RMB19.0
million which was mainly due to foreign exchange gains as
the Company obtained a more favorable exchange rate for the
repatriation of cash for the special cash dividend paid during the
third quarter 2011, and (c) a significant increase in net income
attributable to non-controlling interest, which reflected the
financial results of the reorganization of the Company's game
development studios. The margin of net income attributable to the
Company's shareholders was 57.4% for the third quarter 2012,
compared to 58.2% in the second quarter 2012 and 78.9% in the third
quarter 2011.
Non-GAAP net income attributable to the Company's shareholders
for the third quarter 2012 was RMB342.5
million (US$54.5 million)
representing a 0.9% increase from RMB339.4
million in the second quarter 2012, and a 20.2% increase
from RMB284.9 million in the third
quarter 2011. As described in further detail in the reconciliation
table below, non-GAAP net income attributable to the Company's
shareholders excludes non-cash share-based compensation expense, as
well as the one-time items from the third quarter 2011 relating to
recognition of additional deferred tax assets and foreign exchange
gains on the payment of a special dividend. The margin of non-GAAP
net income attributable to the Company's shareholders was 63.0% for
the third quarter 2012, compared to 64.3% in the second quarter
2012 and 62.2% in the third quarter 2011.
Cash and Cash
Equivalents and Short-Term Investments.
As of September 30, 2012, the
Company's cash and cash equivalents and short-term investments
totaled RMB2,337.7 million
(US$372.0 million), compared to
RMB1,998.7 million as of June 30, 2012. The sequential increase was
primarily due to the growth of the Company's game operations and
effective cost controls.
Cash Dividend. The Board of Directors has
approved, beginning in 2013, a change in the Company's payment of
cash dividends to the Company's shareholders from on an annual
basis to on a semi-annual basis. The payment amounts and dates are
subject to approval by the Board of Directors and compliance with
applicable laws.
Business Highlights and Outlook
Existing Games
ZT Online 1 Series – During the third
quarter 2012, the Company held several ZT Online PK
tournaments and introduced new gameplay designed to encourage
interaction among gamers, both of which received positive feedback
from gamers. The Company also plans to launch an expansion pack for
ZT Online in the first quarter 2013. In addition, the
Company released a selection of new ZT Online Classic
Edition gameplay centered on farming and guild functions and,
for the ZT Online Green Edition, optimized the pet raising
and equipment upgrading systems.
ZT Online 2 – In August, the Company
launched the first part of a new ZT Online 2 expansion pack
to attract gamers during the summer holiday. The first part of the
expansion pack included new in-game activities and gameplay that
were well received by gamers. During the fourth quarter, the
Company will release the second part of the much anticipated
expansion pack, which includes two new professions and additional
in-game activities. The micro-client version of ZT Online 2
has gained positive momentum since the beginning of its testing on
Qihoo 360's platform in September. The Company plans to add
additional servers for the micro-client version during the fourth
quarter 2012.
Elsword – In third quarter 2012, the Company
released a new expansion pack for Elsword during the summer
holiday that was directed towards younger gamers and increased user
activity for the game. In the fourth quarter 2012, the Company
plans to introduce another expansion pack to commemorate the first
anniversary of the game's commercial launch in order to further
boost momentum.
Allods Online – Allods Online began its
closed beta testing on August 30,
2012 and its performance has met with the Company's
expectations. Its 3D western-style fantasy and science fiction
theme has also helped attract a more diverse user base. The Company
expects to launch its first expansion pack in the fourth quarter
2012.
Pipeline Games
World of Xianxia - World of Xianxia is a
self-developed 3D Chinese fantasy-style MMORPG with an ancient
Chinese mythological theme. The game allows users to compete
against each other as part of small groups. In September 2012, the Company conducted the second
round of engineering testing with limited accounts. The testing
results have been positive, demonstrating the high quality of the
game and its ability to continuously attract and engage gamers. The
development team is currently working to improve new gamers'
experience based on user feedback and add additional content to the
game. The Company plans to begin unlimited closed beta testing in
the fourth quarter 2012, supported by large scale marketing
campaigns in March or April 2013.
Webgames - Genesis of the Empire is an
action role playing game ("ARPG") based on the Three Kingdoms
period of ancient Chinese history. The Sky is an ARPG
incorporating core gameplay mechanics from the ZT Online
series. The Company conducted engineering testing for both games in
the third quarter 2012 and expects to commercially launch the games
in the first quarter 2013.
Glorious Mission – Glorious Mission
is the Company's first self-developed first person shooter ("FPS")
game and is currently the only game in the world that is playable
from the perspective of China's
military, the People's Liberation Army ("PLA"). During the third
quarter 2012, the Company released an upgraded single-player
campaign version of the game based on the version the Company
delivered to the PLA in June 2011,
which has attracted over one million downloads. The development
team is working on the online version and the Company is targeting
the first quarter 2013 for an engineering testing.
Fourth Quarter 2012 Guidance — The Company
expects sequential growth to be higher in the fourth quarter 2012
when compared to the third quarter 2012 due to contributions from
multiple new games.
Conference Call
Giant's senior management will host a conference call on
November 13, 2012 at 8:00 pm (US Eastern Time) / 5:00 pm (US Pacific Time), which is November 14, 2012 at 9:00
am (Beijing Time) to discuss its 2012 third quarter
financial results and recent business activities.
The conference call may be accessed using the following
numbers:
US:
|
+1-866-519-4004
|
China:
|
400-620-8038
|
Hong Kong:
|
800-930-346
|
International:
|
+65-6723-9381
|
Passcode:
|
Giant (or
44268)
|
Please dial in approximately 10 minutes before the scheduled
time of this call.
A replay of the conference call will be available starting
11:00 pm (US Eastern Time) on
November 13, 2012 through
11:00 pm (US Eastern Time) on
November 20, 2012 using the following
numbers:
US:
|
+1-866-214-5335
|
Outside US:
|
+61-2-8235-5000
|
Passcode:
|
58638554
|
A live webcast of the conference call and replay will be
available on the investor relations page of Giant Interactive
Group's website at
http://www.ga-me.com/earningsannouncements.php.
Currency Convenience Translation
This earnings press release contains translations of certain
Renminbi (RMB) amounts into US dollars (US$) at the rate of
US$1.00 to RMB6.2848, which was the
noon buying rate as of September 30,
2012 in the City of New
York for cable transfers in Renminbi per US dollar as
certified for customs purposes by the Federal Reserve Bank of New
York. The Company makes no representation that the Renminbi or
US dollar amounts referred to in this release could have been, or
could be, converted into US dollars at such rate or at all.
Use of Non-GAAP Financial Measures
The Company has reported net income attributable to the
Company's shareholders for the period indicated below on a non-GAAP
basis excluding non-cash share-based compensation, recognition of
additional deferred tax assets, and foreign exchange gains on the
payment of a special dividend. The Company believes that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing the performance of the Company as
well as when planning and forecasting future periods.
Readers are cautioned not to view non-GAAP results on a
stand-alone basis or as a substitute for results under GAAP, or as
being comparable to results reported or forecasted by other
companies, and should refer to the reconciliation of GAAP results
with non-GAAP results in the attached financial information.
The table below sets forth the reconciliation of GAAP measures
to non-GAAP measures for the indicated periods:
Giant Interactive
Group Inc.
|
Reconciliation of
GAAP to Non-GAAP (Unaudited)
|
|
|
Three months
ended
|
|
September 30,
|
|
June
30,
|
|
September 30,
|
|
September 30,
|
|
2011
|
|
2012
|
|
2012
|
|
2012
|
|
(RMB)
|
|
(RMB)
|
|
(RMB)
|
|
(US$)
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to the Company's shareholders:
|
361,274,260
|
|
307,217,574
|
|
311,659,943
|
|
49,589,478
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
6,301,546
|
|
32,181,526
|
|
30,827,515
|
|
4,905,091
|
Recognizing additional
deferred tax assets
|
(63,240,829)
|
|
-
|
|
-
|
|
-
|
Foreign exchange gains
on the payment of a
special
dividend
|
(19,437,460)
|
|
-
|
|
-
|
|
-
|
Non-GAAP net income
attributable to the
Company's
shareholders:
|
284,897,517
|
|
339,399,100
|
|
342,487,458
|
|
54,494,569
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.22
|
|
1.43
|
|
1.45
|
|
0.23
|
Diluted
|
1.21
|
|
1.40
|
|
1.41
|
|
0.22
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
233,989,130
|
|
236,700,106
|
|
236,534,154
|
|
236,534,154
|
Diluted
|
235,648,260
|
|
243,280,108
|
|
243,395,859
|
|
243,395,859
|
Statement Regarding Unaudited Condensed Financial
Information
The unaudited financial information set forth above is
preliminary and subject to potential adjustments. Adjustments
to the consolidated financial statements may be identified when
audit work has been performed for the Company's year-end audit,
which could result in significant differences from this preliminary
unaudited condensed financial information.
About Giant Interactive Group Inc.
Giant Interactive Group Inc. (NYSE: GA) is a leading
online game developer and operator in China in terms of market share, and focuses on
massively multiplayer online role playing games. Currently,
Giant operates multiple games, including the ZT Online 1
Series, ZT Online 2, Giant Online, XT Online,
The Golden Land, Elsword, and Allods Online.
The Company has built a nationwide distribution network to
sell the prepaid game cards and game points required to play the
Company's games. For more information, please visit Giant
Interactive Group on the web at www.ga-me.com.
Safe Harbor Statement
Statements in this release contain "forward-looking" statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the 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
and among others, include statements regarding the Company's
expectation for sequential growth in the fourth quarter 2012, the
ability of the Company to introduce new game types to maintain its
growth rates and profitability that exceed the industry average,
the ability of the Company to successfully diversify its revenues,
the sustained progress and performance of ZT Online 2 after
the launch of its first new expansion pack and micro-client
version, the sustained growth and diversity of the Company's user
base after the launch, distribution and testing of pipeline games,
including MMO games, that are part of the Company's portfolio
diversification strategy, the ability for World of Xianxia
to become another blockbuster MMORPG of the Company, the ability of
the Company to implement its strategy in connection with webgames
such as the expected commercial launches of Genesis of the
Empire and The Sky, and the timetable for testing and
release of new games and expansion packs in the Company's game
pipeline. These forward-looking statements are not historical facts
but instead represent only our belief regarding future events, many
of which, by their nature, are inherently uncertain and outside of
our control. Our actual results and financial condition and
other circumstances may differ, possibly materially, from the
anticipated results and financial condition indicated in these
forward-looking statements. Among the factors that could cause
our actual results to differ from what the Company currently
anticipates may include a deterioration in the performances of the
ZT Online 1 Series and ZT Online 2, unexpected delays
in developing expansion packs or in the timetable for testing and
launching our games, our dependence on ZT Online 1 Series
and ZT Online 2, which currently account for the majority of
our historical net revenues, failure of our webgames, MMO pipeline
games, first FPS game or other diversification or distribution
efforts to grow as successful as expected, our uncertainties with
respect to the PRC legal and regulatory environments and the
volatility of the markets in which the Company operates. The
financial information contained in this release should be read in
conjunction with the consolidated financial statements and notes
thereto included in our annual report on Form 20-F for the fiscal
year 2011, as filed with the Securities and Exchange Commission on
April 23, 2012 and in our amended
annual report on Form 20-F/A for fiscal year 2011, as filed with
the Securities and Exchange Commission on September 26, 2012; both of which are available
on the Securities and Exchange Commission's website at
www.sec.gov. For additional information on these and other
important factors that could adversely affect our business,
financial condition, results of operations and prospects, see "Risk
Factors" beginning on page 6 of our annual report for fiscal year
2011. Our actual results of operations for the third quarter
of 2012 are not necessarily indicative of our operating results for
any future periods. Any projections in this release are based
on limited information currently available to the Company, which is
subject to change. Although such projections and the factors
influencing them will likely change, the Company undertakes no
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise,
after the date of this press release. Such information speaks only
as of the date of this release.
GIANT INTERACTIVE
GROUP INC.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
September 30,
|
|
June
30,
|
|
September 30,
|
|
September 30,
|
|
|
2011
|
|
2012
|
|
2012
|
|
2012
|
|
|
(RMB)
|
|
(RMB)
|
|
(RMB)
|
|
(US$)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,608,527,647
|
|
804,654,944
|
|
1,017,685,858
|
|
161,928,121
|
|
Prepayments and other current
assets
|
108,285,283
|
|
170,289,336
|
|
179,988,925
|
|
28,638,767
|
|
Accounts receivable
|
14,032,361
|
|
17,051,202
|
|
12,082,488
|
|
1,922,494
|
|
Due from related
parties
|
3,598,811
|
|
15,359,843
|
|
15,516,480
|
|
2,468,890
|
|
Inventories
|
234,833
|
|
297,817
|
|
562,208
|
|
89,455
|
|
Deferred tax assets
|
187,550,300
|
|
162,858,572
|
|
164,684,388
|
|
26,203,600
|
|
Short-term
investments
|
306,254,260
|
|
1,194,022,110
|
|
1,319,976,950
|
|
210,026,882
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
2,228,483,495
|
|
2,364,533,824
|
|
2,710,497,297
|
|
431,278,209
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
159,836,437
|
|
336,615,015
|
|
343,946,307
|
|
54,726,691
|
|
Intangible assets,
net
|
24,588,960
|
|
28,034,096
|
|
28,831,697
|
|
4,587,528
|
|
Due from research and
development entity partners
|
7,637,000
|
|
12,637,000
|
|
12,637,000
|
|
2,010,724
|
|
Goodwill
|
22,201,960
|
|
22,201,960
|
|
22,201,960
|
|
3,532,644
|
|
Investment in equity
investees
|
39,942,140
|
|
347,837,176
|
|
346,657,534
|
|
55,158,085
|
|
Long-term
investment
|
29,495,239
|
|
39,331,600
|
|
39,331,600
|
|
6,258,210
|
|
Available-for-sale
securities
|
399,097,693
|
|
346,218,997
|
|
345,966,664
|
|
55,048,158
|
|
Held-to-maturity
securities
|
100,000,000
|
|
190,000,000
|
|
190,000,000
|
|
30,231,670
|
|
Deferred tax assets
|
10,371,229
|
|
22,329,767
|
|
23,666,048
|
|
3,765,601
|
|
Other assets
|
276,220,919
|
|
19,374,293
|
|
35,987,666
|
|
5,726,143
|
|
|
|
|
|
|
|
|
|
|
Total non-current
assets
|
1,069,391,577
|
|
1,364,579,904
|
|
1,389,226,476
|
|
221,045,454
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
3,297,875,072
|
|
3,729,113,728
|
|
4,099,723,773
|
|
652,323,663
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Payables and accrued
expenses
|
186,607,355
|
|
144,414,604
|
|
172,464,838
|
|
27,441,579
|
|
Advances from
distributors
|
102,658,418
|
|
75,732,035
|
|
88,701,101
|
|
14,113,592
|
|
Due to related
parties
|
1,836,294
|
|
552,400
|
|
1,145,433
|
|
182,254
|
|
Deferred revenue
|
522,406,376
|
|
497,149,174
|
|
502,029,007
|
|
79,879,870
|
|
Unrecognized tax
benefit
|
42,967,121
|
|
47,579,967
|
|
47,579,967
|
|
7,570,641
|
|
Tax payable
|
4,908,847
|
|
19,810,821
|
|
32,646,444
|
|
5,194,508
|
|
Deferred tax
liabilities
|
155,810,298
|
|
111,844,191
|
|
112,482,669
|
|
17,897,573
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
1,017,194,709
|
|
897,083,192
|
|
957,049,459
|
|
152,280,017
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
8,346,456
|
|
25,545,973
|
|
25,228,303
|
|
4,014,178
|
|
|
|
|
|
|
|
|
|
|
Total
non-current liabilities
|
8,346,456
|
|
25,545,973
|
|
25,228,303
|
|
4,014,178
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
1,025,541,165
|
|
922,629,165
|
|
982,277,762
|
|
156,294,195
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Ordinary
shares
(Par value US$0.0000002
per share; 500,000,000 shares authorized as at Sep 30, 2011,
June 30, 2012 and Sep 30, 2012 respectively; 273,110,626 shares
issued and 235,956,731 shares outstanding at Sep 30,2011 ,
273,110,626 shares issued and 236,988,598 shares outstanding at
June 30, 2012, 273,110,626 shares issued and 236,479,772
shares outstanding at Sep 30, 2012)
|
430
|
|
430
|
|
430
|
|
68
|
|
Additional paid-in
capital
|
4,336,278,339
|
|
4,448,772,557
|
|
4,483,677,511
|
|
713,416,101
|
|
Statutory
reserves
|
43,890,273
|
|
14,125,819
|
|
14,125,819
|
|
2,247,616
|
|
Accumulated other
comprehensive loss
|
(388,275,272)
|
|
(409,464,576)
|
|
(408,478,961)
|
|
(64,994,743)
|
|
Retained earnings
|
378,816,423
|
|
808,080,356
|
|
1,119,740,300
|
|
178,166,417
|
|
Treasury stock
|
(2,099,580,756)
|
|
(2,122,597,526)
|
|
(2,145,387,206)
|
|
(341,361,254)
|
|
|
|
|
|
|
|
|
|
|
Total Giant
Interactive Group Inc.'s equity
|
2,271,129,437
|
|
2,738,917,060
|
|
3,063,677,893
|
|
487,474,205
|
|
|
|
|
|
|
|
|
|
|
Non
controlling interest
|
1,204,470
|
|
67,567,503
|
|
53,768,118
|
|
8,555,263
|
|
|
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
2,272,333,907
|
|
2,806,484,563
|
|
3,117,446,011
|
|
496,029,468
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
3,297,875,072
|
|
3,729,113,728
|
|
4,099,723,773
|
|
652,323,663
|
|
GIANT INTERACTIVE
GROUP INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
|
|
Three months
ended
|
|
September 30,
|
|
June
30,
|
|
September 30,
|
|
September 30,
|
|
2011
|
|
2012
|
|
2012
|
|
2012
|
|
(RMB)
|
|
(RMB)
|
|
(RMB)
|
|
(US$)
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Net
revenue:
|
|
|
|
|
|
|
|
Online games
|
443,922,834
|
|
505,935,805
|
|
523,808,979
|
|
83,345,370
|
Licensing revenues
|
12,872,925
|
|
14,412,389
|
|
14,550,927
|
|
2,315,257
|
Other revenues, net
|
1,092,202
|
|
7,868,368
|
|
4,869,426
|
|
774,794
|
|
|
|
|
|
|
|
|
Total net
revenue
|
457,887,961
|
|
528,216,562
|
|
543,229,332
|
|
86,435,421
|
|
|
|
|
|
|
|
|
Cost of
services
|
(63,310,384)
|
|
(67,099,146)
|
|
(75,139,809)
|
|
(11,955,800)
|
|
|
|
|
|
|
|
|
Gross
profit
|
394,577,577
|
|
461,117,416
|
|
468,089,523
|
|
74,479,621
|
|
|
|
|
|
|
|
|
Operating (expenses)
income:
|
|
|
|
|
|
|
|
Research and product
development
|
(48,895,557)
|
|
(80,557,569)
|
|
(76,055,754)
|
|
(12,101,539)
|
Sales and
marketing
|
(49,630,468)
|
|
(47,669,338)
|
|
(37,388,125)
|
|
(5,948,976)
|
General and
administrative
|
(25,155,496)
|
|
(38,179,977)
|
|
(38,290,384)
|
|
(6,092,538)
|
Government financial
incentives
|
10,000,000
|
|
33,214,000
|
|
10,000,000
|
|
1,591,141
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
(113,681,521)
|
|
(133,192,884)
|
|
(141,734,263)
|
|
(22,551,912)
|
|
|
|
|
|
|
|
|
Income from
operations
|
280,896,056
|
|
327,924,532
|
|
326,355,260
|
|
51,927,709
|
|
|
|
|
|
|
|
|
Interest
income
|
39,505,643
|
|
25,647,412
|
|
31,266,605
|
|
4,974,956
|
Other income,
net
|
25,557,006
|
|
13,888,822
|
|
6,578,424
|
|
1,046,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
expenses
|
345,958,705
|
|
367,460,766
|
|
364,200,289
|
|
57,949,385
|
|
|
|
|
|
|
|
|
Income tax
expense
|
19,315,492
|
|
(36,255,506)
|
|
(30,860,090)
|
|
(4,910,274)
|
Share of loss of
equity investees
|
(746,467)
|
|
(1,053,761)
|
|
(1,179,641)
|
|
(187,697)
|
|
|
|
|
|
|
|
|
Net
Income
|
364,527,730
|
|
330,151,499
|
|
332,160,558
|
|
52,851,414
|
|
|
|
|
|
|
|
|
Net income attributable
to non controlling interests
|
(3,253,470)
|
|
(22,933,925)
|
|
(20,500,615)
|
|
(3,261,936)
|
|
|
|
|
|
|
|
|
Net income
attributable to the Company's shareholders
|
361,274,260
|
|
307,217,574
|
|
311,659,943
|
|
49,589,478
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax
|
|
|
|
|
|
|
|
Foreign currency
translation (loss) gain
|
(29,652,528)
|
|
4,819,713
|
|
2,119,300
|
|
337,210
|
Unrealized holding
losses
|
(4,749,315)
|
|
(20,059,373)
|
|
(1,133,685)
|
|
(180,385)
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss), net of tax
|
(34,401,843)
|
|
(15,239,660)
|
|
985,615
|
|
156,825
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
326,872,417
|
|
291,977,914
|
|
312,645,558
|
|
49,746,303
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.54
|
|
1.30
|
|
1.32
|
|
0.21
|
Diluted
|
1.53
|
|
1.26
|
|
1.28
|
|
0.20
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
233,989,130
|
|
236,700,106
|
|
236,534,154
|
|
236,534,154
|
Diluted
|
235,648,260
|
|
243,280,108
|
|
243,395,859
|
|
243,395,859
|
|
SOURCE Giant Interactive Group Inc.