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 2013

 

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     o

 

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): o

 

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): o

 

 

 



 

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 20, 2013

 

 

 

2



 

EXHIBIT INDEX

 

 

 

Page

 

 

 

Exhibit 99.1 — Press release

 

4

 

3



 

Exhibit 99.1

GRAPHIC

 

PERFECT WORLD ANNOUNCES SECOND QUARTER
2013 UNAUDITED FINANCIAL RESULTS

 

(Beijing, China — August 19, 2013) — 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, 2013.

 

Second Quarter 2013 Highlights1

 

·                  Total revenues were RMB708.5 million (USD115.4 million), compared with RMB624.5 million in the previous quarter and RMB676.4 million in the same quarter last year.

 

·                  Gross profit was RMB535.0 million (USD87.2 million), compared with RMB477.9 million in the previous quarter and RMB549.8 million in the same quarter last year.

 

·                  Operating profit was RMB67.1 million (USD10.9 million), compared with RMB133.1 million in the previous quarter and RMB155.2 million in the same quarter last year.  Non-GAAP operating profit2 was RMB84.2 million (USD13.7 million), compared with RMB149.8 million in the previous quarter and RMB172.5 million in the same quarter last year.

 

·                  Net income attributable to the Company’s shareholders was RMB80.7 million (USD13.2 million), compared with RMB131.0 million in the previous quarter and RMB158.2 million in the same quarter last yearNon-GAAP net income attributable to the Company’s shareholders2 was RMB97.8 million (USD15.9 million), compared with RMB147.6 million in the previous quarter and RMB175.5 million in the same quarter last year.

 

·                  Basic and diluted earnings per American Depositary Share (“ADS”)3 were RMB1.66 (USD0.27) and RMB1.65 (USD0.27), respectively, compared with RMB2.70 and RMB2.69, respectively, in the previous quarter, and RMB3.28 and RMB3.25, respectively, in the same quarter last yearNon-GAAP basic and diluted earnings per ADS2 were RMB2.01 (USD0.33) and RMB2.00 (USD0.33), respectively, compared with RMB3.05 and RMB3.03, respectively, in the previous quarter, and RMB3.64 and RMB3.60, respectively, in the same quarter last year.

 

·                  Launched open beta testing for “Neverwinter in North America and Europe in April 2013

 

·                  Launched open beta testing for “Saint Seiya Online in China in May 2013

 

·                  Launched open beta testing for “Swordsman Online in China in June 2013

 

Mr. Robert Xiao, CEO of Perfect World commented, “We are pleased to announce our results for the second quarter of 2013.  Our revenues rose by 13.5% quarter-over-quarter, beating the high end of our expectations.Our strong second quarter performance was mainly driven by the successful launches of two of our new games, namely ‘Saint Seiya Online,’ a 3D comic-based MMORPG launched in China in mid-May, and ‘Neverwinter,’ a widely-acclaimed MMORPG launched in North America and Europe at the end of April.  In addition, we also launched a number of web and mobile games during the quarter and are working on more varied titles which will further diversify our deep game 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 28, 2013, which was RMB6.1374 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.

 

4



 

“As our results from this quarter show, our deep and diversified portfolio continues to be one of our main strengths and we have made steady progress on providing new content to players with multiple launches of new games and releases of expansion packs for existing games.  In addition to the successful debut of ‘Saint Seiya Online’ and ‘Neverwinter,’ we also launched the highly-anticipated 3D MMORPG ‘Swordsman Online,’ which is adapted from one of Louis Cha’s most famous martial arts novels, in China at the end of the second quarter.  This game has generated positive feedback from gamers and we are optimistic about its prospects to turn into another strong growth driver for us.  We are also excited about a variety of titles in our pipeline, including the highly-anticipated ‘Dota 2,’ our 3D MMORPGs ‘Holy King’ and ‘Legend of the Condor Heroes,’ as well as a number of web games and mobile games.  Additionally, we are also working on localizing ‘Neverwinter,’ which has gained popularity among players in North America and Europe, for its launch in China soon.”

 

“As a hit title developed by our U.S. subsidiary Cryptic Studios, ‘Neverwinter’ clearly demonstrates our strong overseas R&D capabilities, which, along with our experienced R&D teams in China, is an important aspect of our effective globalization strategy.  Meanwhile, we also focus on continuously enhancing our extensive overseas operating network, which is the other important component of our strong globalization strategy.  Contributing more than one-fourth of our total revenue, our well-established global operating network covers over 100 countries and regions worldwide and consists of both our own overseas subsidiaries and our overseas partners.  This bolsters our position as a leading Chinese online gaming company in the overseas market.  Lately, we continued to deepen our global presence by launching more games through our overseas subsidiaries in North America, Europe, Korea and Southeast Asia, and also by launching our games through overseas partners in various overseas markets.  Our proven track record and our commitment to continuously enhance and develop our business in China and overseas have enabled us to provide high-quality gaming experiences and deliver world-class services to players around the world.”

 

While we experienced additional pressure on our margins in the short term from promoting several recently-launched major new games, we are confident in our long-term outlook given the strong performance of our new games as well as the varied line-up of titles in our pipeline.  We have built a solid foundation with our diversified portfolio, strong global R&D capabilities and extensive operating network worldwide, and we will continue to leverage our core strengths and resources to further bolster our position in the global gaming market in an effort to maximize shareholder value over the long term.”

 

Second Quarter 2013 Financial Results

 

Total Revenues

 

Total revenues were RMB708.5 million (USD115.4 million), compared with RMB624.5 million in the previous quarter and RMB676.4 million in the same quarter last year.

 

Online game operation revenues, which include both domestic and overseas online game operations, were RMB650.1 million (USD105.9 million), compared with RMB556.2 million in the previous quarter and RMB626.4 million in the same quarter last year.  The sequential growth in online game operation revenues was primarily attributable to the strong performance of the Company’s new games including “Saint Seiya Online” launched in China and “Neverwinter” launched in North America and Europe.

 

The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 742,000, compared with 554,000 in the previous quarter and 739,000 in the same quarter last year.  The increase from the previous quarter was mainly attributable to the strong performance of a couple of the Company’s major new games.

 

Licensing revenues were RMB31.5 million (USD5.1 million), compared with RMB30.1 million in the previous quarter and RMB46.9 million in the same quarter last year.

 

5



 

Other revenues were RMB26.9 million (USD4.4 million), compared with RMB38.2 million in the previous quarter and RMB3.0 million in the same quarter last year.  The decrease from the previous quarter was primarily associated with less installation of “Torchlight 2” in 2Q13.  “Torchlight 2” is a popular pay-per-install game developed by Runic Games, the Company’s majority-owned subsidiary based in the U.S.

 

Cost of Revenues

 

The cost of revenues was RMB173.5 million (USD28.3 million), compared with RMB146.6 million in the previous quarter and RMB126.6 million in the same quarter last year.  The increase from the previous quarter was mainly due to increases in staff cost, royalty cost, sales-related taxes and internet data center cost in connection with several new games launched in 2Q13.

 

Gross Profit and Gross Margin

 

Gross profit was RMB535.0 million (USD87.2 million), compared with RMB477.9 million in the previous quarter and RMB549.8 million in the same quarter last year.  Gross margin was 75.5%, compared with 76.5% in the previous quarter and 81.3% in the same quarter last year.

 

Operating Expenses

 

Operating expenses were RMB468.0 million (USD76.2 million), compared with RMB344.9 million in the previous quarter and RMB394.6 million in the same quarter last year.  The increase in operating expenses from the previous quarter was mainly due to increases in sales and marketing expenses and R&D expenses in 2Q13.

 

R&D expenses were RMB199.4 million (USD32.5 million), compared with RMB181.0 million in the previous quarter and RMB189.7 million in the same quarter last year.  The increase from the previous quarter was primarily due to an increase in staff cost.

 

Sales and marketing expenses were RMB194.9 million (USD31.8 million), compared with RMB96.6 million in the previous quarter and RMB121.8 million in the same quarter last year.  The increase from the previous quarter was primarily due to an increase in advertising and promotional expenses associated with several new games launched in 2Q13.

 

General and administrative expenses were RMB73.6 million (USD12.0 million), compared with RMB67.3 million in the previous quarter and RMB83.1 million in the same quarter last year.

 

Operating Profit

 

Operating profit was RMB67.1 million (USD10.9 million), compared with RMB133.1 million in the previous quarter and RMB155.2 million in the same quarter last year.  Non-GAAP operating profit was RMB84.2 million (USD13.7 million), compared with RMB149.8 million in the previous quarter and RMB172.5 million in the same quarter last year.

 

Total Other Income

 

Total other income was RMB33.5 million (USD5.5 million), compared with RMB34.2 million in the previous quarter and RMB38.9 million in the same quarter last year.

 

Income Tax Expense

 

Income tax expense was RMB20.2 million (USD3.3 million), compared with RMB33.5 million in the previous quarter and RMB38.1 million in the same quarter last year.  The decrease from the previous quarter was primarily due to the decrease in the operating profit in 2Q13.

 

Net Income Attributable to the Company’s Shareholders

 

Net income attributable to the Company’s shareholders was RMB80.7 million (USD13.2 million), compared with RMB131.0 million in the previous quarter and RMB158.2 million in the same quarter last year.  Non-GAAP net income attributable to the Company’s shareholders was RMB97.8 million (USD15.9 million), compared with RMB147.6 million in the previous quarter and RMB175.5 million in the same quarter last year.

 

6



 

Basic and diluted earnings per ADS were RMB1.66 (USD0.27) and RMB1.65 (USD0.27), respectively, compared with RMB2.70 and RMB2.69, respectively, in the previous quarter, and RMB3.28 and RMB3.25, respectively, in the same quarter last year.  Non-GAAP basic and diluted earnings per ADS were RMB2.01 (USD0.33) and RMB2.00 (USD0.33), respectively, compared with RMB3.05 and RMB3.03, respectively, in the previous quarter, and RMB3.64 and RMB3.60, respectively, in the same quarter last year.

 

Cash and Cash Equivalents

 

As of June 30, 2013, the Company had RMB1.0 billion (USD168.1 million) of cash and cash equivalents, compared with RMB904.8 million as of March 31, 2013.  The increase was mainly due to 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 2013 are expected to be between RMB779 million and RMB815 million, representing an increase of 10% to 15% on a sequential basis.  This takes into consideration the anticipated additional revenue contribution from “Swordsman Online” and “Saint Seiya Online” recently launched in China.

 

Non-GAAP Financial Measures

 

To supplement the financial measures prepared in accordance with generally accepted accounting principles 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 in the future and is not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company’s 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.  The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation charge in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company’s 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 19, 2013 (9:00am Beijing time on Tuesday, August 20, 2013).

 

Dial-in numbers for the live conference call are as follows:

 

·   U.S. Toll Free Number

 

1-855-298-3404

·   International Dial-in Number

 

+61-2-8524-5042

·   Mainland China Toll Free Number

 

4001-200-539

·   Hong Kong Toll Free Number

 

800-905-927

·   U.K. Toll Free Number

 

0800-015-9725

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.

 

A telephone replay of the call will be available beginning two hours after the conclusion of the conference call through 11:59pm Eastern Time, August 26, 2013.

 

Dial-in numbers for the replay are as follows:

 

·   U.S. Toll Free Number

 

1-866-846-0868

·   International Dial-in Number

 

+61-2-9641-7900

Conference ID: 1188020

 

 

 

7



 

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,” “Return of the Condor Heroes,” “Saint Seiya Online” and “Swordsman Online;” an online casual game: “Hot Dance Party;” and a number of web games and mobile games.  While a majority of the revenues are generated in China, Perfect World operates its games in North America, Europe, Japan, Korea and Southeast Asia 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 19, 2013, 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.

 

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

 

Jung Chang

Tel: +852-2117-0861

Fax: +852-2117-0869

Email: jchang@christensenir.com

 

8



 

Perfect World Co., Ltd.

Unaudited Condensed Consolidated Balance Sheets

 

 

 

December 31,

 

June 30,

 

June 30,

 

 

 

2012

 

2013

 

2013

 

 

 

RMB

 

RMB

 

USD

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

799,632,647

 

1,031,837,328

 

168,122,874

 

Restricted cash and time deposits

 

891,462,180

 

338,688,627

 

55,184,382

 

Short-term investments

 

1,508,884,886

 

1,165,689,384

 

189,932,118

 

Accounts receivable, net

 

110,286,428

 

144,604,898

 

23,561,263

 

Due from related parties

 

7,542,600

 

3,866,000

 

629,908

 

Prepayment and other assets

 

156,083,903

 

218,943,125

 

35,673,595

 

Deferred tax assets

 

41,585,847

 

32,587,317

 

5,309,629

 

Total current assets

 

3,515,478,491

 

2,936,216,679

 

478,413,769

 

Non current assets

 

 

 

 

 

 

 

Equity investments

 

227,832,057

 

410,494,058

 

66,884,032

 

Time deposits

 

51,465,395

 

52,715,495

 

8,589,223

 

Restricted time deposits

 

7,814,450

 

7,690,788

 

1,253,102

 

Property, equipment, and software, net

 

1,206,485,419

 

1,313,321,263

 

213,986,584

 

Construction in progress

 

20,326,428

 

12,212,837

 

1,989,904

 

Intangible assets, net

 

229,013,555

 

262,073,918

 

42,701,130

 

Goodwill

 

408,829,417

 

410,523,513

 

66,888,831

 

Prepayments and other assets

 

87,332,624

 

113,958,523

 

18,567,883

 

Deferred tax assets

 

42,427,797

 

43,361,393

 

7,065,108

 

Total assets

 

5,797,005,633

 

5,562,568,467

 

906,339,566

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

70,696,803

 

140,653,417

 

22,917,425

 

Short-term bank loans

 

747,974,500

 

302,756,300

 

49,329,732

 

Advances from customers

 

133,949,512

 

84,098,405

 

13,702,611

 

Salary and welfare payable

 

232,137,936

 

155,716,345

 

25,371,712

 

Taxes payable

 

49,898,625

 

61,965,304

 

10,096,344

 

Accrued expenses and other liabilities

 

58,016,741

 

69,169,675

 

11,270,192

 

Due to related parties

 

150,000

 

830,460

 

135,311

 

Deferred revenues

 

365,705,044

 

504,369,781

 

82,179,715

 

Deferred tax liabilities

 

61,219,290

 

66,571,670

 

10,846,885

 

Deferred government grants

 

458,287

 

5,100,000

 

830,971

 

Total current liabilities

 

1,720,206,738

 

1,391,231,357

 

226,680,898

 

Non current liabilities

 

 

 

 

 

 

 

Deferred revenues

 

56,503,584

 

56,749,333

 

9,246,478

 

Deferred tax liabilities

 

6,875,864

 

8,066,681

 

1,314,348

 

Other long-term liabilities

 

1,619,438

 

1,620,948

 

264,110

 

Total liabilities

 

1,785,205,624

 

1,457,668,319

 

237,505,834

 

 

 

 

 

 

 

 

 

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, 212,376,660 Class B ordinary shares issued and outstanding as of December 31, 2012; 10,000,000,000 shares authorized, 29,671,195 Class A ordinary shares issued and outstanding, 213,991,700 Class B ordinary shares issued and outstanding as of June 30, 2013)

 

193,960

 

194,963

 

31,766

 

Additional paid-in capital

 

329,804,508

 

376,261,640

 

61,306,358

 

Statutory reserves

 

272,938,726

 

287,775,726

 

46,888,866

 

Accumulated other comprehensive loss

 

(80,543,186

)

(123,442,575

)

(20,113,171

)

Retained earnings

 

3,466,189,747

 

3,526,143,464

 

574,533,754

 

Total Perfect World Shareholders’ Equity

 

3,988,583,755

 

4,066,933,218

 

662,647,573

 

Non-controlling interests

 

23,216,254

 

37,966,930

 

6,186,159

 

Total Shareholders’ Equity

 

4,011,800,009

 

4,104,900,148

 

668,833,732

 

Total Liabilities and Shareholders’ Equity

 

5,797,005,633

 

5,562,568,467

 

906,339,566

 

 



 

Perfect World Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

 

 

 

Three months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

 

 

2012

 

2013

 

2013

 

2013

 

 

 

RMB

 

RMB

 

RMB

 

USD

 

Revenues

 

 

 

 

 

 

 

 

 

Online game operation revenues

 

626,444,057

 

556,192,368

 

650,106,240

 

105,925,349

 

Licensing revenues

 

46,923,638

 

30,131,068

 

31,489,188

 

5,130,705

 

Other revenues

 

3,042,555

 

38,186,260

 

26,931,191

 

4,388,046

 

Total Revenues

 

676,410,250

 

624,509,696

 

708,526,619

 

115,444,100

 

Cost of revenues

 

(126,649,248

)

(146,560,852

)

(173,504,663

)

(28,270,059

)

Gross profit

 

549,761,002

 

477,948,844

 

535,021,956

 

87,174,041

 

Operating expenses

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(189,673,612

)

(180,992,409

)

(199,392,117

)

(32,488,043

)

Sales and marketing expenses

 

(121,773,658

)

(96,574,651

)

(194,941,687

)

(31,762,911

)

General and administrative expenses

 

(83,138,145

)

(67,311,606

)

(73,620,386

)

(11,995,370

)

Total operating expenses

 

(394,585,415

)

(344,878,666

)

(467,954,190

)

(76,246,324

)

Operating profit

 

155,175,587

 

133,070,178

 

67,067,766

 

10,927,717

 

Other income / (expenses)

 

 

 

 

 

 

 

 

 

Share of loss from equity investments

 

(2,425,763

)

(1,026,975

)

(3,308,864

)

(539,131

)

Interest income

 

27,861,314

 

24,029,715

 

21,266,383

 

3,465,048

 

Interest expense

 

(7,847,932

)

(4,300,530

)

(1,645,346

)

(268,085

)

Others, net

 

21,309,632

 

15,496,975

 

17,198,395

 

2,802,228

 

Total other income

 

38,897,251

 

34,199,185

 

33,510,568

 

5,460,060

 

Profit before tax

 

194,072,838

 

167,269,363

 

100,578,334

 

16,387,777

 

Income tax expense

 

(38,113,968

)

(33,456,058

)

(20,201,537

)

(3,291,546

)

Net Income

 

155,958,870

 

133,813,305

 

80,376,797

 

13,096,231

 

Net loss / (income) attributable to the non-controlling interests

 

2,248,890

 

(2,851,834

)

365,981

 

59,631

 

Net income attributable to the Company’s shareholders

 

158,207,760

 

130,961,471

 

80,742,778

 

13,155,862

 

 

 

 

 

 

 

 

 

 

 

Net earnings per ordinary share, basic

 

0.66

 

0.54

 

0.33

 

0.05

 

Net earnings per ordinary share, diluted

 

0.65

 

0.54

 

0.33

 

0.05

 

Net earnings per ADS, basic

 

3.28

 

2.70

 

1.66

 

0.27

 

Net earnings per ADS, diluted

 

3.25

 

2.69

 

1.65

 

0.27

 

 

 

 

 

 

 

 

 

 

 

Shares used in calculating basic net earnings per ordinary share

 

241,209,046

 

242,089,199

 

243,080,784

 

243,080,784

 

Shares used in calculating diluted net earnings per ordinary share

 

243,529,117

 

243,852,774

 

245,014,367

 

245,014,367

 

 

 

 

 

 

 

 

 

 

 

Total share-based compensation cost included in:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

(1,089,992

)

(1,041,128

)

(820,454

)

(133,681

)

Research and development expenses

 

(8,345,586

)

(7,807,043

)

(7,737,877

)

(1,260,774

)

Sales and marketing expenses

 

(2,654,574

)

(2,673,345

)

(2,748,356

)

(447,805

)

General and administrative expenses

 

(5,216,569

)

(5,164,597

)

(5,792,385

)

(943,785

)

 



 

Perfect World Co., Ltd.

Reconciliation of GAAP and Non-GAAP Results

 

 

 

Three months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

 

 

2012

 

2013

 

2013

 

2013

 

 

 

RMB

 

RMB

 

RMB

 

USD

 

 

 

 

 

 

 

 

 

 

 

GAAP operating profit

 

155,175,587

 

133,070,178

 

67,067,766

 

10,927,717

 

Share-based compensation charge

 

17,306,721

 

16,686,113

 

17,099,072

 

2,786,045

 

Non-GAAP operating profit

 

172,482,308

 

149,756,291

 

84,166,838

 

13,713,762

 

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to the Company’s shareholders

 

158,207,760

 

130,961,471

 

80,742,778

 

13,155,862

 

Share-based compensation charge

 

17,306,721

 

16,686,113

 

17,099,072

 

2,786,045

 

Non-GAAP net income attributable to the Company’s shareholders

 

175,514,481

 

147,647,584

 

97,841,850

 

15,941,907

 

 

 

 

 

 

 

 

 

 

 

GAAP net earnings per ADS

 

 

 

 

 

 

 

 

 

- Basic

 

3.28

 

2.70

 

1.66

 

0.27

 

- Diluted

 

3.25

 

2.69

 

1.65

 

0.27

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net earnings per ADS

 

 

 

 

 

 

 

 

 

- Basic

 

3.64

 

3.05

 

2.01

 

0.33

 

- Diluted

 

3.60

 

3.03

 

2.00

 

0.33

 

 

 

 

 

 

 

 

 

 

 

ADSs used in calculating net earnings per ADS

 

 

 

 

 

 

 

 

 

- Basic

 

48,241,809

 

48,417,840

 

48,616,157

 

48,616,157

 

- Diluted

 

48,705,823

 

48,770,555

 

49,002,873

 

49,002,873