Detailed inquiry: Shanda game net profit 44.8 million USD in second quarter

Beijing Time September 9 4:33 news, Shanda Games (Nasdaq:game) released today the second quarter of the 2010 fiscal year ended June 30 without the audit earnings. The report showed that Shanda's net revenue for the second quarter was 1.1127 billion yuan (about 163.9 million U.S. dollars), the same period last year was 1.1585 billion yuan, the previous quarter was 1.1432 billion yuan, the net profit attributable to ordinary shareholders is 304.3 million yuan (about 44.8 million USD),　　The same period last year was 363.2 million yuan, the previous quarter was RMB 329 million yuan. Main achievements in the second quarter:-Shanda Game net revenue for the second quarter was 1.1127 billion yuan (about 163.9 million U.S. dollars), the same period last year, 1.1585 billion yuan, the first quarter of the yuan 1.1432 billion yuan;-Grand Games The second quarter comes from large multiplayer cyber role-playing games ( MMORPG) revenue of 1.0154 billion yuan (about 149.5 million U.S. dollars), the same period last year, 1.0793 billion yuan, the previous quarter of RMB 1.0229 billion yuan. Shanda Games MMORPG the number of active paid accounts in the second quarter was 9.64 million, up from 9.62 million in the previous quarter. Shanda Games MMORPG in the second quarter, the average monthly revenue per active paid account (ARPU) is RMB 35.1, the first quarter is RMB 35.4 yuan;-Shanda games in the second quarter, the revenue from casual games was 71.4 million yuan (about 10.5 million US dollars), The same period last year was 72.2 million yuan, the previous quarter was RMB 93.5 million yuan. The season-specific decline in Shanda's game revenue is mainly due to the weak seasonal performance of casual games. Shanda Games Leisure Games The number of active paid accounts in the second quarter was 920,000, down 14% from the previous quarter. Shanda Games MMORPG in the second quarter, the average monthly revenue per active paid account was 25.8 yuan, down 11% from the previous quarter;-Shanda's second-quarter operating profit was 323.6 million yuan (about 47.7 million US dollars), The same period last year was 431 million yuan, the previous quarter was RMB 378.1 million yuan. Shanda's operating profit margin for the second quarter was 29.1%, down from 37.2% in the same period last year, and 33.1% per cent in the previous quarter.-Not in accordance with US GAAP, Shanda's second-quarter operating profit was RMB 367.8 million (about 54.2 million US dollars), The same period last year was 441.1 million yuan, the previous quarter was RMB 391 million yuan. Not in accordance with U.S. general accounting standards, Shanda games in the second quarter operating profit margin of 33.1%, lower than the same period last year 38.1%, as well as the previous quarter of 34.2%; The same period last year was RMB 363.2 million, last quarterIs RMB 329 million yuan. Shanda Games in the second quarter of the United States depository receipts for a thin income of 1.06 yuan (about 0.16 U.S. dollars), the same period last year, 1.32 Yuan, the first quarter of the renminbi 1.14 yuan;-not in accordance with the United States General accounting standards, Shanda game in the second quarter, the net profit of ordinary shareholders was 348.5 million yuan (about 51.3 million U.S. dollars), the same period last year was 373.3 million yuan, the previous quarter was 341.9 million yuan.　　Not in accordance with the United States General accounting standards, Shanda game in the second quarter of the United States depository receipts in the U.S. receipts for the thin 1.22 yuan (about 0.18 U.S. dollars), the same period last year, 1.36 yuan, the previous quarter for the renminbi 1.18 yuan. Note: The U.S. dollar and renminbi in this report are based on the June 30, 2010 renminbi exchange rate announced by the Bank of China, namely: 1 U.S. dollars = 6.7909 yuan.　　The percentages in this earnings are calculated on the basis of the renminbi. Financial analysis of the second quarter: Shanda Game net revenue for the second quarter was 1.1127 billion yuan (about 163.9 million U.S. dollars), the same period last year, 1.1585 billion yuan, the previous quarter for the renminbi 1.1432 billion yuan.　　Shanda Games in the second quarter revenues from MMORPG and casual gaming accounted for 91% and 7% per cent of total net revenue, while other revenues accounted for 2% per cent of total net revenue. Shanda Games in the second quarter from the MMORPG revenue of 1.0154 billion yuan (about 149.5 million U.S. dollars), the same period last year, 1.0793 billion yuan, the previous quarter for the renminbi 1.0229 billion yuan. Shanda Games MMORPG game Revenue's quarterly decline, mainly due to seasonal factors. Shanda Games MMORPG the number of active paid accounts in the second quarter was 9.64 million, up from 9.62 million in the previous quarter.　　Shanda game MMORPG in the second quarter, the average monthly revenue per active paid account (ARPU) was RMB 35.1, and the previous quarter was RMB 35.4. Shanda Games in the second quarter from the game's revenue for the 71.4 million yuan (about 10.5 million U.S. dollars), the same period last year, 72.2 million yuan, the previous quarter for the renminbi 93.5 million yuan. The season-specific decline in Shanda's game revenue is mainly due to the weak seasonal performance of casual games. For casual games, the first quarter of each year is usually a strong season, as winter and Chinese Lunar New Year are in the quarter. Shanda Games Leisure Games The number of active paid accounts in the second quarter was 920,000, down 14% from the previous quarter.　　Shanda Games MMORPG in the second quarter, the average monthly revenue per active paid account was 25.8 yuan, down 11% from the previous quarter. Shanda Games The second quarter of the other revenue for the 25.9 million yuan (about 3.9 million U.S. dollars), the same period last year, 7 million yuan, the previous quarter for the renminbi 26.8 million yuan. ShengOther revenue growth in big games was mainly due to the acquisition of Mochi Media by the American game distributor in the first quarter of 2010. Shanda Games The second quarter of the revenue cost of 467.1 million yuan (about 68.8 million U.S. dollars), the same period last year, 466.4 million yuan, the previous quarter for the renminbi 469.2 million yuan. Shanda Games in the second quarter, revenue costs accounted for 42% of net revenue, up from 40.3% in the same period last year and 41% per cent in the previous quarter.　　Shanda's revenues accounted for a quarterly rise in net revenue, mainly because revenue from licensed gaming increased in net revenue. Shanda game in the second quarter of the gross profit of 645.6 million yuan (about 95.1 million U.S. dollars), the same period last year, 692.1 million yuan, the previous quarter for the renminbi 674 million yuan.　　Shanda's second-quarter gross margin was 58%, down from 59.7% in the same period last year and 59% in the previous quarter. Shanda Games The total operating expenditure for the second quarter was 322 million yuan (about 47.4 million U.S. dollars), the same period last year, 261.1 million yuan, the previous quarter for the renminbi 295.9 million yuan. Shanda's development spending in the second quarter grew from the previous quarter, accounting for 9.7% of net revenue, up from 6.2% in the same period last year, and 9.1% per cent in the previous quarter. Shanda's growth in research and development spending was mainly due to outsourcing research and investment growth in the second quarter to independent game development and operations studios. Shanda's second-quarter sales and marketing expenditures were higher than in the previous quarter, mainly due to increased advertising spending related to new games that will be launched in the second half of the year. Shanda Games second-quarter sales and marketing spending accounted for 10.6% per cent of net revenue, up from 9.5% in the same period last year and 9.4% per cent in the previous quarter. Shanda Games in the second quarter, general and administrative expenditures were higher than in the previous quarter, mainly due to the growth of equity incentive spending, but were partly offset by a fall in non-performing debt spending.　　Shanda Games in the second quarter, general and administrative expenditures accounted for 8.6% per cent of net revenue, up from 6.9% in the same period last year and 7.4% in the previous quarter. Shanda Games second-quarter equity incentive spending was 44.2 million yuan (about 6.5 million U.S. dollars), the same period last year, 10.1 million yuan, the previous quarter for the yuan 12.9 million yuan.　　Shanda's quarterly growth in equity incentive spending was mainly due to a decrease in equity incentive spending by some executives in the first quarter, as well as a failure to complete the net effect of specific performance targets related to equity awards. Shanda Games operating profit for the second quarter of 323.6 million yuan (about 47.7 million U.S. dollars), the same period last year, 431 million yuan, the previous quarter for the yuan 378.1 million yuan.　　Shanda's operating profit margin for the second quarter was 29.1%, down from 37.2% in the same period last year and 33.1% in the previous quarter. Do not follow the United States General accounting standards, a grand TourThe operation profit of the second quarter was 367.8 million yuan (about 54.2 million U.S. dollars), the same period last year was 441.1 million yuan, the previous quarter was RMB 391 million yuan.　　Not according to U.S. General accounting standards, Shanda's second-quarter operating profit margin was 33.1%, down from 38.1% in the same period last year and 34.2% in the previous quarter. Shanda Games Other spending in the second quarter was 4.1 million yuan (about 600,000 U.S. dollars), while other income was 34.3 million yuan in the same period last year, with other income of 53.5 million yuan in the previous quarter.　　Shanda Games received no government financial subsidy in the second quarter, while other income from government financial subsidies in the same period last year was 36.4 million yuan, with other revenues from government financial subsidies of 55.5 million yuan in the previous quarter. Shanda Games The second quarter of the income tax expenditure of 27.5 million yuan (about 4 million U.S. dollars), the same period last year, 101.2 million yuan, the previous quarter for the renminbi 109.7 million yuan.　　Grand Games The effective tax rate for the second quarter was 8.2%, the same period last year was 21.5%, the previous quarter was 24.9%. Shanda game in the second quarter, the net profit of ordinary shareholders was 304.3 million yuan (about 44.8 million U.S. dollars), the same period last year was 363.2 million yuan, the previous quarter was 329 million yuan.　　Shanda game in the second quarter of the United States depository receipts for a thin income of 1.06 yuan (about 0.16 U.S. dollars), the same period last year, 1.32 yuan, the previous quarter for the renminbi 1.14 yuan. Not in accordance with the United States General accounting standards, Shanda game in the second quarter attributable to ordinary shareholders net profit of 348.5 million yuan (about 51.3 million U.S. dollars), the same period last year, 373.3 million yuan, the previous quarter for the renminbi 341.9 million yuan.　　Not in accordance with the United States General accounting standards, Shanda game in the second quarter of the United States depository receipts in the U.S. receipts for the thin 1.22 yuan (about 0.18 U.S. dollars), the same period last year, 1.36 yuan, the previous quarter for the renminbi 1.18 yuan. Shanda Games the cash flow from operating activities in the second quarter was 322.9 million yuan (about 47.5 million U.S. dollars).　　As of June 30, 2010, the Grand Games held cash, cash equivalents, limited cash and short-term investment of 3.0149 billion yuan (about 443.9 million U.S. dollars), higher than the amount of RMB 2.8476 billion as at March 31, 2010. First half of the main performance:-Shanda Game net revenue for the first half of 2.2559 billion yuan (about 332.2 million U.S. dollars), compared with the same period last year, 2.1985 billion yuan growth of 3%; More than 1.317 billion yuan in the same period last year. Grand Games in the first half of the gross margin of 58.5%, lower than the same period last year 59.9%;-the first half of the grand game profitRMB 701.7 million yuan (about 103.3 million U.S. dollars), the same period last year, 831.6 million yuan. The first half of the game's operating profit margin was 31.1%, down from 37.8% in the same period last year.-The net profit for the first half of the Shanda game was 633.3 million yuan (about 93.3 million U.S. dollars) for the average shareholder and 671.2 million yuan in the same period last year. The first half of Shanda's net profit margin was 28.1%, down from 30.5% in the same period last year. Grand Game in the first half of the United States depository receipts for the U.S. deposit receipts for the 2.20 yuan (about 0.32 U.S. dollars), the same period last year, 2.44 yuan;-not in accordance with the United States General accounting standards, the first half of the grand game in general shareholders of the net profit of RMB 690.4 million (about 101.7 million U.S. The same period last year was 689.7 million yuan. Not according to the U.S. General accounting standards, the first half of the grand game net profit margin of 30.6%, lower than the same period last year 31.4%. Not in accordance with the United States General accounting standards, the first half of the grand game of the United States depository receipts of the U.S. certificate of deposit is 2.40 yuan (about 0.36 U.S. dollars), the same period last year for 2.50 yuan;　　As of June 30, 2010, the Grand Games held cash, cash equivalents, limited cash and short-term investment of 3.0149 billion yuan (about 443.9 million U.S. dollars), higher than the amount of RMB 2.6116 billion as at December 31, 2009.　　Company news: July 22, 2010, the grand game began to "The Valley of the Dragon" for public testing.　　September 9, 2010, the Grand Game announced a joint venture agreement with Chinese network television, will set up a network game channel, and engaged in network game operation and other related business.　　September 9, 2010, Grand Games announced that the company has reached a 95 million dollar price acquisition of South Korean online game developers Eyedentity Games, the latter is the "Dragon Valley" developers. Stock Repurchase plan: March 1, 2010, Shanda game Board approved a stock repurchase plan. Under the plan, Shanda is authorized to repurchase American depository vouchers worth up to 150 million dollars over the next 24 months.　　As of June 30, Shanda has bought up about 3.7 million U.S. depository receipts, with a total purchase price of about $24.5 million. Conference call: After the earnings release, the grand game will be in the U.S. Eastern Time September 8 21:00 (Beijing time September 9 9:00) conference call.　　Shanda Games Management will attend a conference call to read the earnings points and answer questions from analysts and investors. Details of the participation in the conference call are as follows:-American users please call toll-free 1866-850-2201-China GrandSouth Land users please call toll-free 10800-120-2770-Mainland China users please call toll-free 10800-712-2725-China Hong Kong users please call toll-free 800-966-243-UK users please call toll-free 0800-279-9640-International　　Households please call +44-(0) 20-7784-1036 access password: 5478998 Users can also be in the Grand Game website (http://ir.shandagames.com/) online listening to the meeting live or meeting playback.　　The conference call playback will be available free of charge 7 days from Beijing time September 9, 2010 12:00. Incoming listening details are as follows:-U.S. users please call toll-free 1866-932-5017-International users please call +44-(0) 20-7111-1244 access password: 5478998 (Tangfeng)