58 in the second quarter of the city net profit of 11.2 million U.S. dollars year-on-year increase 126%

58 the same city (NYSE stock Code: WUBA) today released unaudited results for the second and first half of June 30, 2014. Earnings showed that 58 of the same city in the second quarter of the total revenue of 64.6 million U.S. dollars, an increase of 83.9%, 58 in the second quarter of the city's net profit of 11.2 million U.S. dollars, an increase of 125.6%, 58 in the first half of the city's total income of 112.8 million U.S. 58 of the first half of the city net profit of 13.5 million U.S. dollars, compared to the same period of 300,000 U.S. dollars increased significantly. Gross financial results for the second quarter of 2014 were $64.6 million trillion, up 83.9% from the previous forecast of $61 million to $63 million trillion. Gross margin of 94.7%, higher than the same period last year 93.9%. Net profit of 11.2 million U.S. dollars, an increase of 125.6%. The basic and diluted share of ads for ordinary shareholders was $0.14 and $0.13, respectively, above $0.03 a year earlier. Ads per share corresponds to 2 shares of Class A common stock. According to U.S. GAAP, the net profit for the same city in the second quarter was $12.4 million, up from $5.5 million a year earlier. Not according to the United States GAAP, 58 in the second quarter of the same city to ordinary shareholders of the basic and diluted ads earnings per share are 0.15 U.S. dollars, higher than the same period last year 0.06 U.S. dollars. The main financial results in the first half of 2014 were 112.8 million U.S. dollars, an increase of 91.7%. Gross margin of 94.8%, higher than the same period last year 93%. The net profit was $13.5 million trillion, much higher than the 300,000 dollars of the same period last year. The basic and diluted earnings per share of ads for ordinary shareholders are $0.17 and $0.16, respectively, compared with a loss of 0.23 dollars over the same period last year. Not according to the United States GAAP, the first half of the city 58 net profit of 15.8 million U.S. dollars, higher than the same period last year 1.4 million U.S. dollars. Not according to the United States GAAP, 58 in the first half of the city attributable to ordinary shareholders of the basic and diluted ads per share of the revenue is 0.20 U.S. dollars and 0.19 U.S. dollars, compared with the same period last year, the loss of 0.18 U.S. dollars. In the second quarter of 2014, gross income was 64.6 million U.S. dollars, up 83.9% from 35.1 million U.S. dollars in the same period in 2013. Membership income of 35.1 million U.S. dollars, compared with the same period in 2013 20.6 million U.S. dollars increased by 70.6%. This increase was mainly due to a rise in the number of paid merchant members. In the second quarter of 2014, paid merchant members were about 510,000, up 71.1% from 298,000 in the same period in 2013. Network Marketing Services revenue of 29.3 million U.S. dollars, compared with the same period in 2013 14.1 million U.S. dollar growth of 107.7%. This increase in revenue is mainly attributable to the growth of user flow and efficiency of the company's network marketing services. The revenue cost was 3.4 million U.S. dollars, up 58.4% from 2.1 million U.S. dollars in the same period of 2013. RevenueThe increase in costs is mainly due to the rise in the cost and bandwidth costs of SMS services. Gross profit of 61.2 million U.S. dollars, compared with the same period of 2013 33 million U.S. dollar growth of 85.5%. Gross margin for the second quarter was 94.7%, up from 93.9% in the same period of 2013. Operating expenses were $53.9 million, up 89.2% from $28.5 million in the same period in 2013. Sales and marketing expenditures were $40.3 million, up 106.6% from 19.5 million US dollars in the same period of 2013. Advertising spending accounted for 16.5 million dollars in sales and marketing spending, up from $4.5 million in the same period in 2013. The increase in advertising spending is mainly due to increased spending on corporate mobile platform marketing. Brand and network marketing spending has also increased, but the increase is relatively small. The increase in other sales and marketing expenses is mainly due to the increase in commission, wages and benefits of the company's sales and customer service teams. Research and development expenditure of 9.5 million U.S. dollars, compared with the same period in 2013 6.1 million U.S. dollars increased by 56.9%. The increase in research and development spending is mainly due to the increased cost of human resources resulting from the hiring of more research and development personnel, increased equity incentives and increased rental costs. The administrative expenses were $4.1 million, an increase of 39.5% per cent over the 2.9 million United States dollar in 2013. The increase in administrative expenditure is mainly due to increases in the expenditure on stock incentives, increased professional service fees and other administrative-related expenses. Operating profit of 7.3 million U.S. dollars, higher than the same period of 2013 4.5 million U.S. dollars. The operating profit rate for the second quarter was 11.3%, up from 12.8% in the same period in 2013. Other revenues were $5.6 million trillion, a significant increase compared with the 500,000 dollars in the same period in 2013. This increase was mainly due to increased interest income of 1.9 million of dollars, 1.2 million of dollars in investment income and 1.8 million dollars in government funding. Income tax is $1.7 million, which is calculated on the basis of the company's estimated annual effective tax rate of 13%. Net profit was $11.2 million, a sharp increase compared with the 5 million US dollars in the same period in 2013. The net profit margin for the second quarter was 17.3%, up from 14.1% in the same period in 2013. The basic and diluted share of ads for ordinary shareholders was $0.14 and $0.13, respectively, above $0.03 and 0.03 in the same period in 2013. As of June 30, 2014, 58 of the city owned cash, cash equivalents, fixed-term deposits and short-term investments amounted to USD 414.3 million. Net cash from operating activities was 22.2 million dollars, up from 13.5 million in the same period in 2013. Earnings analysis in the first half of 2014 amounted to $112.8 million trillion, up 91.7% from 58.8 million U.S. dollars in the same period in 2013. Membership income of 62.6 million U.S. dollars, compared with the same period in 2013 35.5 million U.S. dollars increased by 76.6%. This increase was mainly due to a rise in the number of paid merchant members. 47 paid merchant members during the first half of 2014.60,000, a 74.4% increase from 273,000 in the same period in 2013. Network Marketing Services revenue of 49.8 million U.S. dollars, compared with the same period in 2013 22.4 million U.S. dollar growth of 122.2%. The revenue cost was 5.8 million U.S. dollars, up 42.5% from 4.1 million U.S. dollars in the same period of 2013. The increase in revenue costs is mainly due to the rising cost of SMS services and bandwidth costs. Gross profit of 107 million U.S. dollars, compared with the same period of 2013 54.7 million U.S. dollar growth of 95.4%. Gross profit margin was 94.8% in the first half, higher than 93% in 2013. Operating expenses were $98 million, up 76.9% from $55.4 million in the same period in 2013. Sales and marketing expenditures were $72.4 million, up 90.1% from 38.1 million US dollars in the same period of 2013. Advertising spending accounted for 29.1 million dollars in sales and marketing spending, up from $10.3 million in the same period in 2013. Research and development expenditure of 17.3 million U.S. dollars, compared with the same period in 2013 11.9 million U.S. dollars increased by 45.6%. The increase in research and development spending is mainly due to the increased cost of human resources resulting from the hiring of more research and development personnel, increased equity incentives and increased rental costs. The administrative expenses were $8.3 million, an increase of 52.8% per cent over the 5.5 million United States dollar in 2013. The increase in administrative expenditure is mainly due to increases in the expenditure on stock incentives, increased professional service fees and other administrative-related expenses. Operating profit of 9 million U.S. dollars, with the same period of 2013 operating loss of 700,000 U.S. dollars compared to profitability. The first half of the operating profit rate of 7.9%, 2013 the same period of 1.1%. The other income was $6.5 million, an increase of 597.7% per cent compared with 900,000 dollars in the same period in 2013. The increase was mainly due to a sharp increase in interest income, investment income and government funding. Income tax is $2 million, which is calculated on the basis of the company's estimated annual effective tax rate of 13%. Net profit was $13.5 million, a sharp increase compared with the 300,000 US dollars in the same period in 2013. Net profit margins were 12% in the first half, up from 0.5% in the same period in 2013. The basic and diluted share of ads for ordinary shareholders was $0.17 and $0.16, respectively, compared with a loss of $0.23 per share in the same period in 2013. Net cash from operating activities was 40.2 million dollars, up from 17.9 million in the same period in 2013. Performance Outlook 58 The same city is expected to be in the third quarter of 2014 total revenue between 66 million U.S. dollars to 68 million U.S. dollars, the corresponding year-on-year growth rate between 59% to 63%. (Lin Jingdong)