Grand Game net profit of the third quarter 40 million U.S. dollars fell 28%

News and technology information Beijing time November 27, the Grand game today released the third quarter as at September 30, 2012, the combined results of unaudited. Financial results show that the third quarter of the grand game net revenue of 1.081 billion yuan (170 million U.S. dollars), compared with the same period last year, 1.353 billion yuan fell 20%, net profit of 254 million yuan (40 million U.S. dollars), compared with the same period last year 343 million Yuan Year-on-year decline 28%, Earnings per share exceed Wall Street analyst expectations.

Non-US General Accounting Standards (NON-GAAP) financial points for the third quarter of 2012

Net operating income of 1.081 billion yuan (170 million U.S. dollars), the same period last year, 1.353 billion yuan, the last quarter of 1.131 billion yuan.

Gross profit of 705 million yuan (111 million U.S. dollars), the same period last year, 859 million yuan, the last quarter was 726 million yuan; Gross profit margin was 65.3% in the third quarter of 2012, 63.5% in the same period last year and 64.2% in the previous quarter.

Operating profit of 324 million yuan (51.1 million U.S. dollars), the same period last year, 433 million yuan, 391 million yuan in the last quarter, operating margin in the third quarter of 2012 30%, the same period last year 32%, the last quarter was 34.6%.

Net profit of 290 million yuan (45.7 million U.S. dollars), the same period last year, 404 million Yuan, the last quarter of 337 million yuan.

Each share (US depository receipts) diluted net income of 1.04 yuan (17 cents), the same period last year, 1.42 Yuan, the last quarter of 1.20 yuan.

U.S. General Accounting Standards (GAAP) Financial essentials for the third quarter of 2012

Net operating income of 1.081 billion yuan (170 million U.S. dollars), the same period last year, 1.353 billion yuan, the last quarter of 1.131 billion yuan.

Net operating income of China's regional network games is 1.015 billion yuan (160 million U.S. dollars), the same period last year, 1.281 billion yuan, the last quarter of 1.04 billion yuan.

Other income of 65.4 million yuan (10.3 million U.S. dollars), the same period last year, 72.1 million yuan, the last quarter of 90.2 million yuan. The quarterly fall in other income was mainly due to a fall in advertising revenue in the third quarter.

Gross profit of 685 million yuan (108 million U.S. dollars), the same period last year, 830 million yuan, the last quarter was 705 million yuan; Gross profit margin was 63.4% in the third quarter of 2012, 61.3% in the same period last year and 62.4% in the previous quarter.

Operating profit of 281 million yuan (44.3 million U.S. dollars), the same period last year, 361 million yuan, 355 million yuan in the last quarter, operating margin in the third quarter of 2012 26%, the same period last year 26.7%, the last quarter was 31.4%.

Net profit of 254 million yuan (40 million U.S. dollars), the same period last year, 343 million yuan, the last quarter of 308 million yuan.

Each share (US depository receipts) diluted net income of 0.92 yuan (15 cents), the same period last year, 1.20 yuan, the last quarter of 1.10 yuan.

Game operation data for China in the third quarter of 2012

The average monthly active user of Chinese games in the quarter (MAU) grew 6.2% to 18.4 million per cent in the last quarter, driven by updates to some of the main game content.

The average monthly paid user (MPU) in China in the quarter was 3.5 million, down 7.9% from the previous quarter. MPU's fall in the third quarter was mainly due to the introduction of more free features and gameplay by some game releases, which turned some low-end paid users into free users.

The average monthly contribution (monthly ARPU) for each paid user in this quarter was 95.7 yuan, an increase of 6% per cent over the last quarter. The ARPU growth in the third quarter was mainly due to the decline in the number of paid users mentioned above.

"In the third quarter, we continued our strategy to enhance gameplay to extend the game lifecycle, while launching a series of new initiatives to improve the user experience," said Shanda's chief executive. Driven by these initiatives, the monthly number of active users increased by 6.2% over the last quarter. In the long run, we believe that with the injection of more new users, our continuous improvement of the game mix and the rich product line will show sustainable growth. ”

"We are also actively developing and preparing new products as we continue to release the latest versions and materials for existing games, and we plan to launch the" Space-Time Rift "," 0 World "," Final Fantasy 14 2.0 "and" Dungeon striker "and other games. These strong product lines are not only a result of our continued commitment to the game mix, but also a sign of our efforts to diversify our sources of income and to develop our businesses healthily. ”

On the other hand, we continue to promote our excellent products to overseas markets. "Dragon Valley" is about to be launched in the European market, and we will also strive to use the game's global success to build a grand game in the international market brand, and in the future to export overseas markets "dungeon striker" and other new products. Overseas business will be the company's overall business long-term and sustainable development of an important part. ”

"At the same time, we are increasing our investment in mobile gaming to cope with the new changes in the market." We believe that the brand, operating experience, marketing channels and healthy financial status of Shanda Games will continue to be the core competitiveness of the company. We want to copy the game operation experience to the mobile platform, expand the game access mode, and further expand the user base. ”

"Looking to the future, we firmly believe that the ' 3 a ' strategy of ' All-Star, All-region, All-platform ' will promote the long-term development of Shanda games." We are planning to expand the product line, the global business and mobile phone areas, and look forward to the future performance of these efforts can be well reflected. ”

Stock repurchase Plan

June 11, 2012, the company's board of directors authorized the grand game in the next 12 months, according to market conditions, transaction prices and other factors, and in compliance with the United States Securities Management Regulations, the repurchase value of less than 100 million U.S. dollars in the company's shares (the United States depository shares, that is, "ADS"). As of November 23, 2012, the company has bought up about 10.9 million shares of ads in total, costing US $40 million.

Teleconference and Webcast

Grand Game management team will be in Beijing/Hong Kong time November 27, 2012 early 9 o'clock (the United States Eastern Time November 26, 2012 8 o'clock in the evening) conference call to report the company's financial and operating conditions. The telephone access code is as follows:

USA Free: 1866-519-4004

China Mobile Access free: 400-620-8038

China fixed-line access free: 800-819-0121

Hong Kong Free: 800-930-346

UK free: 0808-234-6646

International Fee: +65-6723-9381

Password: 71472066

From Beijing/Hong Kong Time November 27 Noon 12 o'clock, investors can call the following telephone conference call recordings, valid for 7 days:

USA Free: 1855-452-5696

International Fee: +61-2-8199-0299

Password: 71472066

Online live and replay of teleconferencing can also be heard in the Investor Relations section of Shanda Gaming website http://ir.shandagames.com/.