China Hand Tour launches second fiscal quarter summary:

Revenue for the 72 million yuan (about 11.7 million U.S. dollars), and the same year for the 60.7 million yuan, the first quarter of 36.5 million yuan, the net loss of 12.6 million yuan (about 2.1 million U.S. dollars), and the same period last year net profit of 23.4 million yuan; based on non-US general accounting standards, Net loss of 3.9 million yuan (about 600,000 U.S. dollars), and the same period last year net profit of 26.6 million yuan.

Second Quarter Performance Summary:

Revenue for the 72 million yuan (about 11.7 million U.S. dollars), and the same period last year, 60.7 million yuan, the first quarter for the renminbi 36.5 million yuan.

Net loss of 12.6 million yuan (about 2.1 million U.S. dollars), while the net profit of 23.4 million yuan, the first quarter of this year net loss of 21.6 million yuan.

Based on non-US general accounting standards (excluding equity incentive expenses and intangible asset impairment losses), net loss of 3.9 million yuan (about 600,000 U.S. dollars), while the net profit of 26.6 million yuan, the first quarter of this year net loss of 13.2 million yuan.

The United States depository shares of the basic and diluted losses of 0.66 yuan (about 0.11 U.S. dollars), and a year earlier for each share of basic and amortization losses of 0.92 yuan, the first quarter of this year, each share of basic and diluted losses of RMB 1.01 yuan.

Second quarter business performance:

The total number of subscribers to social Games was 1.4 million, compared with 158,795 a year earlier, and 308,039 in the first quarter. Social games per user average revenue (ARPU) for RMB 20.84 yuan, and the same period last year 75.54 yuan, the first quarter of this year is 23.81 yuan.

The number of Single-user game packs was 2 million, the same year was 1.7 million, and the first quarter was 1.5 million. The average revenue per user is RMB 5.18, the same period was 4.79 yuan, the first quarter of this year is RMB 4.73 yuan.

The total number of subscribers to the game was 3.9 million, a year earlier of 12.7 million, and the first quarter of this year was 4.3 million. Average revenue per user (ARPU) is RMB 3.28 yuan, the same period was 3.03 yuan, the first quarter of this year is 3.38 yuan.

Second quarter performance analysis:

Revenue for the 72 million yuan (about 11.7 million U.S. dollars), and the same period last year, 60.7 million yuan, the first quarter for the renminbi 36.5 million yuan.

Mobile gaming revenue of 54.3 million yuan (about 8.9 million U.S. dollars), compared with the 58.3 million yuan in the same period last year, the decline of 6.8%, compared with the first quarter of this year's 29 million yuan in the growth of 87.2%.

Mobile phone design revenue of 17.6 million yuan (about 2.9 million U.S. dollars), and the same period last year, 2.4 million yuan, the first quarter of this year for the yuan 7.5 million yuan.

Revenue costs

The revenue cost was 39.1 million yuan (about 6.4 million U.S. dollars), up 62.5% from 24 million yuan a year earlier, up 22 million per cent compared with 77.9% yuan in the first quarter.

Mobile gaming revenue cost of 22.3 million yuan (about 3.6 million U.S. dollars), and the same period last year, 21.6 million yuan, the first quarter of this year for the yuan 14.7 million yuan.

Mobile design revenue cost of 16.8 million yuan (about 2.7 million U.S. dollars), and the same period last year, 2.4 million yuan, the first quarter of this year for the Yuan 7.2 million yuan.

Gross

Gross margin rate was 45.7%, a year earlier was 60.4%, the first quarter of this year was 40%.

Mobile game gross profit margin of 58.9%, a year ago is 63%, the first quarter of this year is 49.3%.

Mobile design Gross Profit margin of 5.1%, a year ago is 0.6%, the first quarter of this year is 4.3%.

Operating expenses

Operating expenses of 46.1 million yuan (about 7.5 million U.S. dollars), and the same period last year, 19.3 million yuan, the first quarter of this year for the yuan 32.8 million yuan.

Sales expenditure accounted for net revenue of 24%, a year earlier of 8.1%, the first quarter of this year is 20.7%.

General and administrative expenses of RMB 17.4 million (about 2.8 million U.S. dollars), the same period was 7.1 million yuan, the first quarter of this year is RMB 13.8 million yuan.

Equity incentive spending of 8.6 million yuan (about 1.4 million U.S. dollars), the same period was 3.2 million yuan, the first quarter of this year, the expenditure of RMB 5.8 million yuan.

Research and development expenditure accounted for net revenue of 15.8%, a year earlier of 12.1%, the first quarter of this year is 24%.

Operating income (loss)

Operating loss of 13.2 million yuan (about 2.1 million U.S. dollars), the same period last year operating profit of 17.4 million yuan, the first quarter of this year operating loss of 18.2 million yuan.

Based on non-US general accounting standards, operating loss of 4.5 million yuan (about 700,000 U.S. dollars), operating profits in the same period of 20.6 million yuan, operating losses in the first quarter of this year, 9.7 million yuan.

Income

Income tax expenditure of 500,000 yuan (about 100,000 U.S. dollars), the same period last year income tax income of 8.8 million yuan, the first quarter of this year's income tax expenses of RMB 1.1 million yuan.

Net profit (loss)

Net loss of 12.6 million yuan (about 2.1 million U.S. dollars), while the net profit of 23.4 million yuan, the first quarter of this year net loss of 21.6 million yuan.

Based on non-US general accounting standards, net loss of 3.9 million yuan (about 600,000 U.S. dollars), while the net profit of 26.6 million yuan, the first quarter of this year net loss of 13.2 million yuan.

The United States depository shares of the basic and diluted losses of 0.66 yuan (about 0.11 U.S. dollars), and a year earlier for each share of basic and amortization losses of 0.92 yuan, the first quarter of this year, each share of basic and diluted losses of RMB 1.01 yuan.

Cash and cash equivalents

As at June 30, 2013, the Chinese Hand Tour has a cash and cash equivalent of 103.3 million yuan (about 16.8 million U.S. dollars), short-term investment of 51.4 million yuan (about 8.4 million U.S. dollars).

Conference

China Hand Tour management will be in the U.S. Eastern Time August 28, 2013 8 o'clock in the morning (Beijing time August 28 Night 8 o'clock) conference call, the conference call access mode is as follows:

USA Free: +1 855-500-8701

Hong Kong, China: +852 3051-2745

Mainland China: 400-120-0654

International: +65 6723-9385

Password: cmge

In addition, you can also listen to the live broadcast of the conference call through the China Hand Tour website Investor Relations channel Http://ir.cmge.com.