Giant 2nd quarter net profit 27.4 million dollar Quarter-on-quarter growth 5.7%

August 10 (16:15 est August 9), the Giant Network (NYSE:GA) released its unaudited financial results for the second quarter of the 2010 fiscal year ending on June 30. Earnings showed that the giant network in the second quarter net revenue of 321.7 million yuan (about 47.4 million U.S. dollars), the first quarter of the renminbi 304.4 million yuan, the same period last year for the renminbi 364.1 million yuan; The net profit attributable to the shareholders of the company is 186 million yuan (about 27.4 million US dollars),　　The previous quarter was 185.2 million yuan, compared with 231.9 million yuan in the same period last year. 2010 second quarter earnings points: • Net revenue in the second quarter of 2010 was RMB 321.7 million (about 47.4 million U.S. dollars), the previous quarter was 304.4 million yuan, the same period last year, the same time for RMB 364.1 million; • Gross profit for the second quarter of 2010 is RMB 274.8 million yuan ( About 40.5 million U.S. dollars), the previous quarter of RMB 259.3 million yuan, the same period last year for 309.5 million yuan; • Gross profit margin for the second quarter of 2010 was the net profit attributable to shareholders of the company in the second quarter of 85.4%; 2010 year (about 27.4 million USD), The previous quarter was 185.2 million yuan, compared with 231.9 million yuan in the same period last year. The net profit margin attributable to shareholders in the second quarter of 2010 was the basic and diluted net income of the 57.8%; 2010 in the second quarter of the year (ADS) was 0.82 yuan (about 0.12 U.S. dollars) and RMB 0.79 (about 0.12 USD) respectively, The previous quarter was 0.82 yuan and 0.79 yuan respectively, the same period last year, respectively, 1.03 yuan and RMB 0.99 yuan. Ads per share represents a common stock; Excluding Non-cash equity incentive payments (not in accordance with U.S. General accounting standards), giant network in the second quarter of 2010 attributable to the Company's shareholders of the net profit of 193.1 million yuan (about 28.5 million U.S. dollars), the previous quarter of 189.7 million yuan, the same period last year for the renminbi 239.8 million yuan. Excluding Non-cash equity incentive payments (not in accordance with US general accounting standards), the net profit margin of the giant network attributable to shareholders in the second quarter of 2010 was 60%. • Excluding Non-cash equity incentive payments (not in accordance with US GAAP) Giant network in the second quarter of 2010 the basic and diluted earnings per share of 0.85 yuan (about 0.13 U.S. dollars) and 0.82 yuan (about 0.12 U.S. dollars), The previous quarter was 0.84 yuan and 0.81 yuan respectively, the same period last year, respectively, 1.06 yuan and RMB 1.03 yuan; • 2010 second quarter online game active pay account ("APA") for 1.435 million, the chain growth of 4.5%, Year-on-year Growth 19.2%; 2010 The second quarter net game average pay user income ("ARPU") for RMB 223.0 yuan, the chain growth 1.4%, Year-on-year decline 25.7%; 2010 The second quarter net game average number of online players ("ACU") for 670000,　　Growth of 13.9%, year-on-year growth of 48%. • 2010 the second quarter of the network game the highest number of online players ("PCU") for 1657000, the chain growth of 2.8%, year-on-year growth of 15%. "We are pleased with the company's continuous growth in revenue," said Shi Yuzhu, chairman and CEO of the giant's network of directors, who continue to respond positively to our "journey online" strategy and product portfolio diversification program. From the main operating indicators, we are encouraged by the overall user base growth. The 19.2% per cent increase in active pay accounts shows that we are successfully attracting a wider range of players with different spending habits and are nurturing a healthier, more sustainable revenue base.　　"In the second quarter of 2010, the net revenue of the net revenue of unaudited financial performance was 321.7 million yuan (about 47.4 million U.S. dollars) in the second quarter of 2010, which grew 5.7% from the 304.4 million yuan in the previous quarter and 364.1 million yuan in the same period last year. The network game net revenue for the Giants network in the second quarter of 2010 was 313.8 million yuan (about 46.3 million U.S. dollars), which grew 6.4% from the 294.8 million yuan in the previous quarter, and 361.2 million yuan in the same period last year. The growth of net revenues of giants online games is mainly due to the continued revival of the company's flagship product, Journey online, and the recent release of the King of Kings 3, which has contributed to net revenue.　　Net revenue for Giants online games fell year-on-year, largely due to the cancellation of some of the game's commercial functions in the third quarter of 2009. Giant network in the second quarter of 2010, the network game ACU 670000, the chain growth of 13.9%, an increase of 48%, 2010 the second quarter of the network game PCU 1657000, the chain growth of 2.8%, year-on-year growth of 15%. Giant network ACU and PCU of the chain and year-on-year growth, mainly due to "journey online" and a variety of new game user base growth. Giant network in the second quarter of 2010, the network game ARPU 223.0 Yuan, the chain growth of 1.4%, down 25.7% year-on-year. Giant network ARPU A small growth, but still below the historical level, because the giant network of new games with a wide range of consumption habits of different audiences as the goal. In the second quarter of 2010, the APA of the online games was 1435000, the chain grew 4.5%, and the year-on-year growth was 19.2%.　　The Giant network APA's year-on-year growth, mainly due to "journey online" and the new release of the game's pay account increased. The main business costs giant network in the second quarter of 2010 the main business costs of 46.9 million yuan (about 6.9 million U.S. dollars), the chain growth of 3.9%, year-on-year decline of 14%.　　Giant network The main business costs of the chain growth, mainly due to the "King of Kings 3" in the second quarter of the public survey related intangible assets amortization. Gross profit and gross margin the giant network in the second quarter of 2010, the gross profit of 274.8 million yuan (about 40.5 million U.S. dollars), the chain growth of 6%, year-on-year growth of 11.2%.　　The giant network's gross margin for the second quarter of 2010 was 85.4%, up from 85.2% in the previous quarter and 85% in the same period last year. Operating costs giant network in the second quarter of 2010, the total operating costs of 94.2 million yuan (about 13.9 million U.S. dollars), compared with the last quarter of the 80.8 million yuan growth of 16.6%, compared with the same period last year, 75.1 million Yuan Rose 25.5%.　　The growth in the overall cost of network operations is mainly due to the growth of marketing activities related to new game promotions. Giant network in the second quarter of 2010, the cost of product development for the 33.1 million yuan (about 4.9 million U.S. dollars), compared to the last quarter of the renminbi 33.7 million yuan fell 1.8%, but compared with the same period last year 29 million yuan increased 14.2%.　　Giant Network product research and development costs are basically flat, but year-on-year growth, mainly because the company hired more research and development talent to promote the development of new game projects. Giant network in the second quarter of 2010 sales and marketing costs of 45.4 million yuan (about 6.7 million U.S. dollars), compared to the last quarter of 29.6 million yuan growth of 53.3%, compared with the same period last year, 24.2 million Yuan Rose 87.9%. Giant network sales and marketing costs of the chain growth, mainly because the company in the second quarter for the "King of Kings 3" and other games launched a marketing campaign.　　Giant network sales and marketing costs increased year-on-year, mainly because the company last year, the market restrictions on the activities. The giant network's management fee for the second quarter of 2010 was 25.7 million yuan (about 3.8 million U.S. dollars), which grew 1% from the 25.5 million yuan in the previous quarter, down 31.9 million from the yuan in the same period last year. The chain growth in network management costs for Giants comes mainly from the one-time consultancy fees associated with human resources use and the additional compensation costs associated with the newly awarded restricted units.　　Giant network management costs fell year-on-year, mainly because the management of the implementation of strict expenditure control measures. Government subsidy to the giant network in the second quarter of 2010, the government subsidy of 10 million yuan (about 1.5 million U.S. dollars), mainly representative of the municipal government returned business tax. This tax rebate is related to the business tax nature, so the giantNetwork as a deduction for operating expenses.　　The giant network last quarter's government subsidy was about 2 million yuan (about 300,000 US dollars).　　Interest income giant network interest income in the second quarter of 2010 was 30.5 million yuan (about 4.5 million U.S. dollars), the previous quarter was 31.2 million yuan, the same period last year, the renminbi 23 million yuan.　　Income tax fees giant network in the second quarter of 2010, the income tax cost of 20 million yuan (about 3 million U.S. dollars), the last quarter of the income tax cost of 21.6 million yuan, the same period last year, the income tax cost of RMB 25.9 million yuan. Net profit giant network the net profit attributable to shareholders in the second quarter of 2010 was 186 million yuan (about 27.4 million U.S. dollars), which grew 0.4% from the 185.2 million yuan in the previous quarter, down 231.9 million from the same period last year. The growth of net profit of giant network is mainly due to the growth of net game revenue.　　The net profit margin of the giant network in the second quarter of 2010 was 57.8%, the previous quarter was 60.9%, and the same period last year was 63.7%. Cash, cash equivalents and short-term investments as of June 30, 2010, the giant network held cash, cash equivalents and short-term investment value of 5.4969 billion yuan (about 810.6 million U.S. dollars), as at March 31, 2010 of 5.5401 billion yuan.　　The decline in cash, cash equivalents and short-term investments by giants ' networks is largely offset by a 40.9 million-dollar dividend that offsets the cash growth generated by the company's operations during the quarter. Stock repurchase plan in August 2009, the giant network adopted a stock repurchase scheme that empowers companies to buy back the "American Depository Receipts" ("ADS"), which can reach a maximum of $150 million trillion. As of June 30, 2010, the Giants network did not repurchase any shares under the plan, which expires on August 30, 2010.　　In August 2010, the Board of Giants Network decided to extend the plan for a period of one year. The forecast Giants network in the third quarter of 2010 predicted that the journey online series and other game products would continue to bring positive momentum in the third quarter.　　Based on this, the giant network expects total net revenue to continue to grow in the third quarter of 2010. Conference call giant network executives are scheduled for August 9, 2010 (Monday) Eastern Time 9 o'clock/US Western time 6 o'clock/Beijing time 10th morning 9 to hold an investor teleconference to discuss the second quarter of 2010 performance and the recent operating activities. To participate in the conference call, please call +1 866 356 3093 In the United States, the southern region of China, please call +86 10 800 130 0399, please call +86 10 800 852 1490 in the northern part of China, the United States and ChinaPlease call +1 617 597 5381 and enter the password 42213654 to attend the meeting.　　At the end of the teleconference, from 12 o'clock noon August 10, 2010, investors can call +1 888 286 8010 (US) or +1 617 801 6888 (other regions) to listen to the conference call recording, the password is: 56233363.　　Webcast and replay of teleconferencing can also be heard at the Investor relations section of the giant's website (http://www.ga-me.com/earningsannouncements.php). (Edit Zhang Xing)