2014

NetDragon Websoft Inc. Reports Fourth Quarter and Fiscal Year 2011 Financial Results Revenue Achieves All-time High; Full-year Net Profit Jumped 288% Over 2010

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

  • Total revenues were RMB 217.2 million, an increase of 7.1% over the third quarter of 2011 ("QoQ"), and an increase of 50.9% over the fourth quarter of 2010 ("YoY")
  • Revenue from Online Games was RMB 192.5 million, an increase of 4.9% QoQ and an increase of 33.7% YoY
  • Revenue from Mobile Internet was RMB 24.7 million, an increase of 28.4% QoQ and an increase of 489.5% YoY
  • Gross Profit was RMB 188.8 million, an increase of 2.2% QoQ and an increase of 46.0% YoY
  • Operating Profit was RMB 26.9 million, a decrease of 54.4% QoQ and a decrease of 27.7% YoY
  • Profit attributable to owners of the company was RMB 7.9 million, a decrease of 84.2% QoQ and a decrease of 15.4% YoY
  • Basic earnings per share ("EPS") were RMB 1.53 cents, diluted EPS were RMB 1.53 cents
  • Peak concurrent users ("PCU") for online games were 612,000, an increase of 7.6% QoQ and an increase of 12.9% YoY
  • Average concurrent users ("ACU") for online games were 310,000, an increase of 3.3% QoQ and an increase of 33.6% YoY
  • The Board of Directors has recommended a final dividend of 0.12 Hong Kong dollars per share, subject to final approval by the shareholders at the Annual General Meeting
  • During the quarter ended 31 December 2011, the company repurchased a total of 10,353,000 shares on the Stock Exchange at an aggregate consideration of HKD 40,420,035 before expenses

Fiscal Year 2011 Financial Highlights

  • Total revenues for 2011 jumped to RMB 761.0 million, an increase of 43.1% compared to 2010
  • Total revenue from Online Games was RMB 701.6 million, an increase of 31.9% compared to 2010
  • Total revenue from Mobile Internet was RMB 59.4 million, an increase of 792.6% compared to 2010
  • Gross profit was RMB 685.9 million, an increase of 47.4% over 2010
  • Operating profit was RMB 180.4 million, an increase of 158.9% compared to 2010
  • Profit attributable to owners of the company was RMB 135.2 million, an increase of 286.7% over 2010; net profit margin was 17.8% up from 6.6% in 2010
  • Basic earnings per share were RMB 25.85 cents, diluted EPS were RMB 25.85 cents
  • During the year ended 31 December 2011, the company repurchased a total of 13,971,000 shares on the Stock Exchange at an aggregate consideration of HKD 55,401,035 before expenses

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

  • NetDragon released a new Chinese expansion pack for its western fantasy MMORPG Eudemons Online, enabling the game's monthly revenue to reach a new high.
  • The English version of Conquer Online, a Martial Arts MMORPG, for iPad finished its open beta and is now available worldwide at the iPad App Store.

Mobile Internet

  • 91 PC Suite, NetDragon's applications distribution platform for all mainstream operating systems, exceeded 52 million total users. And total users for Hi Market, NetDragon's Android applications distribution platform, exceeded 12.9 million. As of December 2011, total aggregate downloads over both marketplaces exceeded 3 billion.

Other

  • 91kt Player, jointly developed by NetDragon and Turner Broadcasting System Asia Pacific, Inc., the parent company of Cartoon Network, was officially launched. Along with 91kt.com, the two companies aim to offer Chinese kids the best in animation and digital entertainment products.

Recent Developments & Business Outlook 

Online Games

  • Eudemons Online's next expansion pack is expected in May, 2012.
  • Conquer Online's "classical version" is expected in the third quarter of 2012.

Mobile Internet

  • NetDragon will establish a joint venture with Japan's leading social gaming platform operator, DeNA Co., Ltd. ("DeNA") that will localize non-Chinese social games, including a roster of DeNA's popular in-house and third party titles, for the growing smartphone market in China.
  • 91 Panda Home plans to release product segments targeted at different genders, ages and occupations to meet users' demands.
  • 91 Panda Reader will further optimize its e-reading and social media functionality to increase community interaction and realize cloud synchronization across all platforms.

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:

maggie@nd.com.cn                                                                         

 

ir@nd.com.cn

Website:

www.nd.com.cn/ir

 


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

 

SOURCE NetDragon Websoft Inc.



RELATED LINKS
http://ir.netdragon.com/investor/ir_events.shtml

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.