In the last quarter, the net profit of the tour was 43 million U.S. dollars according to the GAAP.

Tour (Nasdaq:cyou) today released the 2013 financial year, the quarter and the year without audit earnings. In the quarter, the net profit of 43 million U.S. dollars in the US General Accounting Standard (GAAP) was 0.81 dollars per share, down 43% year-on-year, but still beyond Wall Street analysts ' expectations.

Swimming in the press release, said that net profit year-on-year and the decline in the chain is due to the increase in the current quarter of platform products to promote investment to develop platform business.

In the quarter, the tour revenue reached 194.9 million U.S. dollars, an increase of 12% per cent, according to the United States General Accounting Standards (GAAP), a net profit of 43 million U.S. dollars, equivalent to 0.81 U.S. dollars a share, down 43%; not in accordance with the United States General Accounting Standards (NON-GAAP), Net profit of 43.3 million U.S. dollars, equivalent to 0.82 U.S. dollars per share, the year-on-year decline of 43%.

According to Yahoo's financial data, 6 of Wall Street analysts on average expect to gain $0.38 per share in the four-quarter fiscal season, according to U.S. General Accounting Standards (GAAP). Earnings showed a 0.81 dollar gain per share in the quarter, exceeding analysts ' expectations.

In addition, on average, 8 Wall Street analysts expect a four-quarter revenue to reach $195.79 million in the U.S. General Accounting Standards (GAAP). Earnings for the quarter were 194.9 million dollars, slightly below analysts ' expectations.

In the 2013 fiscal year, the tour revenue reached 737.9 million U.S. dollars, an increase of 18% per cent, according to the United States General Accounting Standards (GAAP), the net profit is 268.6 million U.S. dollars, equivalent to 5.04 U.S. dollars per share, down 5%; not in accordance with the United States General Accounting Standards (NON-GAAP), Net profit of 269.9 million U.S. dollars, equivalent to 5.06 U.S. dollars per share, the year-on-year decline of 7%.

According to Yahoo's financial data, 15 of Wall Street analysts on average expect a 2013 per share gain of $4.64 in the U.S. General Accounting Standards (GAAP). Earnings for the 2013 fiscal year were 5.04 dollars per share, more than analysts had expected.

In addition, 15 of Wall Street analysts on average expect a 2013 fiscal year to reach $739.05 million trillion in the U.S. General Accounting Standards (GAAP). Earnings showed that the 2013 fiscal year revenue was 737.9 million dollars, slightly below analysts ' expectations.

Financial results of fiscal year 2013:

-Total revenue reached a record 194.9 million U.S. dollars, the chain growth of 6%, year-on-year growth of 12%, and the company's guidance forecast flat.

-Net game revenue reached a record 172 million U.S. dollars, the chain growth of 6%, year-on-year growth of 9%, and the company's guidance forecast flat.

-Online advertising revenue reached a record 16.9 million U.S. dollars, the chain growth of 3%, year-on-year growth of 35%, and the company's guidance forecast flat.

-The net profit attributable to the tour is 43 million U.S. dollars, the chain reduction of 41%, the year-on-year decrease of 43%. The per-share ads (US depository shares), which belong to the cruise, fully diluted the net profit of USD 0.81.

-Non-gaap (Non-US GAAP) net profit of 43.3 million U.S. dollars, a 41% reduction in the chain, a year-on-year decrease of 43%, more than 21.3 million dollars in corporate guidance forecasts. Non-gaap, which belongs to the cruise, has a fully diluted net profit of $0.82 per share.

――2013 December 24, a tour completes the acquisition of a fully diluted 62.5% stake in a company that holds all the assets (these assets, hereinafter called "RC Voice Business") related to the business of the RC voice of the Social Communication Platform (hereinafter called "RC Voice"). From December 31, 2013 onwards, RC Voice business merged into the swimming financial statements.

――2013 July 27, the Board of Directors authorized the launch of a maximum of 100 million U.S. dollars ads circulation shares repurchase plan, the time is July 27, 2013 to July 26, 2015. As of December 31, 2013, the tour has bought back 590,500 shares of ads, the total cost of 17.3 million U.S. dollars.

Annual results of fiscal year 2013:

-The total revenue reached a record 737.9 million U.S. dollars, an increase of 18%.

-Online gaming revenue reached a record 669.2 million dollars, an increase of 17%.

-Online advertising revenue reached a record 50 million U.S. dollars, an increase of 18%.

-The net profit attributable to the tour is USD 268.6 million, which is a total dilution of $5.04 per share of ads. Net profit attributable to the tour is down 5% per cent year-on-year.

-The net profit of the NON-GAAP, which belongs to the tour, is $269.9 million trillion, which is a total dilution of $5.06 per share ads. The net profit of Non-gaap, which belongs to the tour, is down 7%.

Wang Yu, chief executive, said: "The company's flagship game" Tianlong Eight "," the Divine Comedy "and" Pinball Hall "continue to support the development of online gaming business. Our latest "Tianlong eight" large-scale data film "new Tianlong Eight", as well as "the Divine Comedy," a large updated version of the Divine Comedy II, promoting the growth of two games. In order to improve the company's mobile end of the game product success probability, we are in the independent research and development, but also used a variety of ways with the company's external game research and development talent cooperation. We will be working with the independent Gaming studios to develop mobile-side games, as well as a new mobile-end game Agent program-a "must-win program," from an independent gaming studio acting on the game. At the same time, we are committed to deepening the company's internal innovation and entrepreneurial spirit. We have announced a new employee incentive program designed to motivate employees to share the company's success and the results of specific projects. We believe that investment in these areas will help the company get more excellent products, develop the company's business, and further consolidate the company's leading position in the online gaming industry.

"17173 Business and new releases of software and applications have performed well in the quarter," said Chen Deven, president of the tour. 17173 website is the leading information media in the gaming industry and is the preferred game portal for Chinese gamers. 17173 website currently expands the multi terminal business, has introduced many kinds of software and the application, for example 17173PC end browser, 17173 mobile end and the net swims Baby mobile application and so on product. We will hire more mobile-end developers and content editors, upgrade existing products, and build more new products. 2014 we will continue to promote the company's software and applications, to accelerate the development of the company's platform business. ”

He Jie, chief financial officer, said: "The company's 2013 financial performance, the fourth quarter of 2013, the revenue of each line of business was a record high, 2013 annual revenue to maintain a sound growth." The company's existing business continues to bring abundant cash flow to the company, supporting our continued commitment to new software and applications for mobile-side gaming and corporate platform business. We believe that these investments will further enhance the company's long-term competitiveness and industry position, to create more long-term value for shareholders. ”

2013 fourth quarter operating results

The company's operating performance in the fourth quarter of 2013 is as follows:

The total average monthly active users of the company's game is 25 million, the chain down 19%, down 34% year-on-year. The decline in the chain was mainly due to the decline in the number of active users in the fourth quarter of 2013, as well as the decline in the number of active users in the "Divine Comedy". The decline is mainly due to the company to further enhance the game economy, the balance of the system, cancellation of the "Tianlong eight" some game accounts, bringing the "Tianlong eight" active users of the decline, "pinball Hall" into a relatively mature period after the fourth quarter of active users of the decline, and the "Divine Comedy" The decline in the number of active users in the country.

The total average monthly active users of the company's platform products is 149 million, the chain growth of 51%, the year-on-year growth of 93%. The main reason for the chain and year-on-year growth is the fourth quarter of 2013, the company to a variety of PC-side software and mobile applications to promote, and acquired and released new software and applications.

Unaudited earnings for the fourth quarter of 2013

Income

In the fourth quarter of 2013, total revenue reached 194.9 million U.S. dollars, the chain growth of 6%, up 12% year-on-year, to reach the company's guidance forecast.

2013 the fourth quarter of the net game revenue reached 172 million U.S. dollars, the chain growth of 6%, year-on-year growth of 9%, reached the guidance of the company forecast. Year-on-year and chain growth is mainly due to the company in the fourth quarter of 2013 launched the "Tianlong Eight" annual large-scale data sheet-"new Tianlong Eight" income growth.

In the fourth quarter of 2013, online advertising revenue reached 16.9 million U.S. dollars, the chain growth of 3%, year-on-year growth of 35%, reached the company's guidance forecast. The growth of the chain was mainly due to the fourth quarter of 2013 when some game companies increased their investment in game ads on 17173 sites. Year-on-year growth was mainly due to the 2013 17173 website advertising price growth.

In the fourth quarter of 2013, the Internet value-added services generated by 17173 operating third party web game business were 1.4 million U.S. dollars, the chain growth of 28%, the year-on-year growth of 85%. The growth of the chain was mainly due to the introduction of more 17173 third party web games in the fourth quarter of 2013, as well as the growth of some web game players ' consumption, resulting in revenue growth. The increase was mainly due to the increase in the number of third-party web game players operating 17173, resulting in revenue growth.

In the fourth quarter of 2013, the other revenue, including advertising revenue, was 4.6 million U.S. dollars, the chain growth of 14%, year-on-year growth of 119%. Quarter-on-quarter and year-on-year growth is mainly due to the 2013 fourth quarter of the sales team to improve the ability to bring advertising sales growth.

Gross profit

Gross profit and non-US general accounting standards in the fourth quarter of 2013 gross profit of 159.6 million U.S. dollars, the chain growth of 4%, year-on-year growth of 10%. Gross margin and non-US GAAP gross margins were 82% in the fourth quarter of 2013, with 84% in the third quarter of 2013 and 84% in the fourth quarter of 2012.

In the fourth quarter of 2013, the net game business gross profit of 146 million U.S. dollars, the chain growth of 4%, the year-on-year growth of 7%. In the fourth quarter of 2013, the non-US general accounting standards for online gaming business gross profit of 146.1 million U.S. dollars, the chain growth of 4%, year-on-year growth of 7%. In the fourth quarter of 2013, gross profit margins of the online gaming business and non-US general accounting standards were 85%, with 87% in the third quarter of 2013 and 86% in the fourth quarter of 2012. Gross profit margin and non-US general accounting standards in the fourth quarter of 2013 gross profit margin and year-on-year decline was mainly due to the company in the fourth quarter of 2013 released a variety of agents of large multiplayer online games, web games and mobile games, bringing additional costs.

In the fourth quarter of 2013, gross profit of online advertising and non-US general accounting standards Gross profit were 12 million U.S. dollars, the chain fell 9%, an increase of 14%. Gross margins and non-US GAAP gross margins were 71% in the fourth quarter of 2013, with 80% in the third quarter of 2013 and 84% in the fourth quarter of 2012. Gross profit margin and non-US general accounting standards for online advertising in the fourth quarter of 2013 gross profit margin was mainly due to the increase in content procurement costs in the fourth quarter of 2013. Gross profit margin and non-US GAAP in the fourth quarter of 2013 gross profit margins fell mainly due to the hiring of more people in the fourth quarter of 2013, the increase in the cost of wages and benefits, and the growth of content procurement costs.

In the fourth quarter of 2013, the gross profit of the Internet value-added services business and non-US general accounting standards Gross profit were 1.1 million U.S. dollars, the chain growth of 56%, an increase of 102%. In the fourth quarter of 2013, the gross profit margin of the Internet value-added services business and the gross profit margin of non-US general accounting standards were 75%, the third quarter of 2013 were all 61%, 2012 fourth quarter were 68%. Gross profit margin and non-US general accounting standards for Internet value-added services in the fourth quarter of 2013 gross profit margins and year-on-year growth were mainly attributable to the revenue growth of the Internet value-added services business in the fourth quarter of 2013.

Gross profits of other businesses in the fourth quarter of 2013 and non-US GAAP gross profits were $500,000, and gross losses in other businesses and non-US GAAP in the third quarter of 2013 were $700,000 trillion, In the fourth quarter of 2012, gross losses in other businesses and non-US general accounting standards were $2.3 million trillion.

Operating expenses

In the fourth quarter of 2013, the total operating expenses amounted to 130.4 million U.S. dollars, the chain growth of 83%, an increase of 156%.

Product development cost of 43.2 million U.S. dollars, the chain growth of 42%, the year-on-year increase of 100%. The growth of the chain is mainly due to the increase of the company's agent Third-party game royalties, as well as the company's hiring of more games and software developers, resulting in a rise in the cost of wages and benefits. The increase was mainly due to the company's hiring of more games and software developers, which led to an increase in the cost of wages and benefits.

Sales and marketing costs of 69.2 million U.S. dollars, the chain growth of 146%, the year-on-year increase of 249%. The chain and year-on-year growth was mainly due to the fourth quarter of 2013 company development platform business, increased the promotion of PC-side software and mobile applications, as well as the company in the fourth quarter of the new "Tianlong Eight" annual large data Sheet-"new Tianlong Eight" and the new introduction of several mobile end games to promote, Led to an increase in advertising costs and a rise in corporate payroll and welfare costs in the fourth quarter of 2013.

Management cost of 18.1 million U.S. dollars, the chain growth of 39%, the year-on-year increase of 90%. The Quarter-on-quarter and year-on-year growth was mainly due to the company's hiring of more people, resulting in a rise in the cost of wages and benefits.

Operating profit

In the fourth quarter of 2013, operating profit of 29.1 million U.S. dollars, the chain down 64%, down 69% year-on-year. In the fourth quarter of 2013, the operating profit rate was 15%, the third quarter of 2013 was 45%, and the fourth quarter of 2012 was 54%.

Non-US general accounting standards in the fourth quarter of 2013 operating profit of 29.5 million U.S. dollars, the chain down 64%, down 69% year-on-year. In the fourth quarter of 2013, the operating profit rate for non-US GAAP was 15%, the third quarter of 2013 was 45%, and the fourth quarter of 2012 was 55%.

Income

December 2013, the company's main operating entity in China to obtain the "2013-2014 National Key Software Enterprise" qualification, 2013 and 2014 can enjoy 10% of the preferential corporate income tax rate.

Companies in accordance with the 15% Enterprise income tax rate of 2013 to pay the corporate income tax, after the preferential tax rate can be processed, the fourth quarter of 2013 in accordance with the tax rebate adjusted income tax income of 7.7 million U.S. dollars, compared to the third quarter of 2013 income tax expenditure of 13.6 million U.S. dollars, In the fourth quarter of 2012, income tax was $17.7 million.

Net profit

In the fourth quarter of 2013, net profit was 43 million U.S. dollars, the chain fell 41%, down 46% year-on-year. The net profit margin was 22% in the fourth quarter of 2013, 40% in the third quarter of 2013 and 46% in the fourth quarter of 2012.

Non-US general accounting standards net profit of 43.3 million U.S. dollars, the chain down 41%, down 46% year-on-year. In the fourth quarter of 2013, the net profit margin for non-US GAAP was 22%, the third quarter of 2013 was 40%, and the fourth quarter of 2012 was 46%.

Net profit margins in the fourth quarter of 2013 and non-US general accounting standards The decline was mainly due to the hiring of more personnel, the increase in wage and welfare costs, as well as the fourth quarter of 2013 company development platform business, increased the PC-side software and mobile applications, the promotion of advertising costs increased. These increases in operating costs exceed the growth in gross income.

Net profit attributable to non-controlling shareholders classified as intermediate interests

Net profits of non-controlled shareholders classified as intermediary interests in the third and fourth quarters of 2013, as well as the net profit of non-US general accounting principles attributable to the unmanaged shareholders classified as intermediate interests, were 0 United States dollars, down 100% per cent year-on-year, The decline was due to Seventh Avenue becoming a wholly owned subsidiary of the cruise on June 5, 2013. Detailed information is detailed in "financial information notes".

Net profit attributable to a tour company

In the fourth quarter of 2013, the net profit attributable to the company was 43 million U.S. dollars, the chain fell 41%, down 43% year-on-year. The net income of US depository receipts, which belonged to the company, was 0.81 US dollars, less than $1.36 in the third quarter of 2013, and $1.41 in the fourth quarter of 2012. In the fourth quarter of 2013, the net profit margin attributable to the company was 22%, the third quarter of 2013 was 40%, and the fourth quarter of 2012 was 43%.

Non-US GAAP attribution to the company's net profit of 43.3 million U.S. dollars, the chain down 41%, down 43% year-on-year, exceeding the company's guidance forecast of 2,130 U.S. dollars. Non-United States General accounting standards attributable to the company's share of U.S. depository receipts in the United States, the net income of 0.82 U.S. dollars, the third quarter of 2013 to 1.37 U.S. dollars, the fourth quarter of 2012 for 1.42 U.S. dollars. In the fourth quarter of 2013, the net profit margin of non-US GAAP was 22%, the third quarter of 2013 was 40%, and the third in 2012 was 44%.

Capital Liquidity

As of December 31, 2013, the tour held net cash and cash equivalents as well as short-term investments totaling USD 551.3 million, up from $525.6 million as at September 30, 2013. The operating cash flow for the fourth quarter of 2013 was a net inflow of USD 83 million.

As at December 31, 2013, The tour holds a short-term and long-term bank loan of USD 410.3 million, as well as a mobile and illiquid limited fixed-term deposit of USD 424.7 million, and as of September 30, 2013, the tour holds a short-term bank loan of USD 354 million, as well as a mobile and illiquid limited term deposit of $365.7 million.

Unaudited earnings for 2013

Income

2013 's revenue amounted to $737.9 million trillion, up 18% from 2012.

2013 's online gaming revenues amounted to $669.2 million trillion, up 17% from 2012. The growth was mainly due to the growth of the 2013 "Tianlong Eight" income and the growth of the "Divine Comedy" overseas business.

Online advertising revenue generated by 17173 of businesses in 2013 amounted to $50 million, up 18% from 2012. The growth was mainly due to the 2013 17173 website advertising price and sales growth.

The Internet value-added services generated by the 17173 operating third party web gaming business in 2013 were 5.4 million U.S. dollars, up 25% from 2012. The increase was mainly attributable to the increase in revenue generated by the increased number of third party web game players operating in 2013 17173.

Other revenues, including advertising revenue in 2013, were $13.3 million trillion, up 113% from 2012. Growth is mainly due to the increase in the sales team's ability to generate advertising sales.

Gross profit

Gross profits in 2013 amounted to $611.4 million trillion, up 18% from 2012. The 2013 non-US GAAP gross profit amounted to $611.5 million trillion, up 18% from 2012. Gross profit margin and non-US general accounting standards gross profit margins are 83%, 2012 are 83%.

Gross profit and non-US GAAP gross profits of the 2013 online gaming business were $575.9 million trillion, up 17% from 2012. Gross profit margin and non-US general accounting standards for the 2013 online gaming business gross profit margins were 86% and 2012 were 87%.

The gross profit of the online advertising business in 2013 was $36.2 million, up 1% from 2012. Non-US general accounting standards for online advertising in 2013 gross profits amounted to $36.2 million trillion, roughly unchanged from 2012. Gross profit margins and non-US general accounting standards for the 2013 online advertising business gross profit margins were 72%, and 2012 were 85%. Gross profit and non-US general accounting standards for online advertising business in the 2013 the decline in gross profit was mainly due to the hiring of more personnel in 2013, which led to an increase in the cost of wages and benefits.

Gross profit and non-US GAAP gross profit for the 2013 Internet value-added services business was $3.6 million trillion, up 29% from 2012. Gross profit margin and non-US general accounting standards for the 2013 Internet value-added services business gross profit margin is 67%, 2012 is 65%.

Gross losses in other operations in 2013 and non-US general accounting standards the gross losses in other businesses were $4.2 million, compared with 1, 3.8 million in 2012. Gross losses in other businesses and non-US general accounting standards The decrease in gross losses in other operations was mainly attributable to the increase in advertising sales as a result of the increased ability of the sales team in 2013.

Operating expenses

The total operating costs for 2013 amounted to USD 305.9 million, which grew by 79% per cent over 2012.

The cost of product development was 119.9 million dollars, up 63% from 2012. The increase in product development costs is mainly due to the company's hiring of more games and software developers, resulting in a rise in wage and welfare costs.

Sales and marketing costs were 128.8 million dollars, up 112% from 2012. Sales and marketing cost growth is mainly due to the 2013 company development platform business, increased the use of PC-side software and mobile applications, as well as the company's new release of a variety of large multiplayer online games, mobile end games and information to promote, brought about the increase in advertising costs. Another reason for the increase was the increase in corporate payroll and welfare costs in the fourth quarter of 2013.

The cost of management was 57.2 million dollars, up 71% from 2012, and the increase in management costs was mainly attributable to the increased hiring of companies and the increase in the cost of wages and benefits.

Operating profit

Operating profit for 2013 was $305.5 billion, down 12% from 2012. 2013 operating profit rate was 41%, 2012 was 56%.

2013 Non-US GAAP operating profit was $306.8 million, down 14% from 2012. 2013 Non-US general accounting standards operating profit rate of 42%, 2012 57%.

Income

December 2013, the company's main operating entity in China to obtain the "2013-2014 National Key Software Enterprise" qualification, 2013 and 2014 can enjoy 10% of the preferential corporate income tax rate. So the 2013-year income tax was $36.4 million, down 46% from 2012.

Net profit

Net profit for 2013 was $286.4 million, down 2% from 2012. 2013 net profit margin was 39%, 2012 was 47%.

2013 's non-US GAAP net profit was $287.7 million, down 5% from 2012. 2013 Non-US general accounting standards Net profit margin of 39%, 2012 to 48%.

Net profit attributable to non-controlling shareholders classified as intermediate interests

The net profit of the non-controlled shareholders classified as intermediary rights in the 2013 and the Non-US GAAP attribution to the non-controlled shareholders classified as intermediate interests were $17.8 million, up 59% from 2012.

Growth is mainly due to the increase in the estimated redemption value of the Seventh Avenue, which is classified as an intermediary interest. Detailed information is detailed in "financial information notes".

Net profit attributable to a tour company

The net profit attributable to the company in 2013 was $268.6 million, down 5% from 2012. The net income of the United States depository receipts, which belonged to the company, was 5.04 US dollars, less than 5.29 dollars in 2012. The net profit margin of 2013, which belonged to the company, was 36%, and 2012 was 45%.

The net profit of non-US GAAP, which was attributed to the company in 2013, was $269.9 million, down 7% from 2012. Non-US GAAP in 2013 the net income from US depository receipts was 5.06 U.S. dollars, less than 5.43 U.S. dollars in 2012. The net profit margin of the 2013 non-US GAAP attribution to the company was 37%, and 2012 was 47%.

Other business developments in the fourth quarter of 2013

"Tianlong Eight" (mobile version) officially launched

October 29, 2013, Swim independently research and development of mobile end game "Tianlong Eight (mobile version)" Officially launched, this is a battle card strategy game, adapted from the martial arts novels of Jinyong "Tianlong eight". Players can relive the "Tianlong eight" original classic plot, in order to play in the game and promotion, the players need to collect many types of martial arts characters card, composed of up to 6 people's team, to carry out the pre-war strategy and licensing.

To complete the acquisition of RC voice business Equity

December 24, 2013, a tour of 47.6 million U.S. dollars total cash to buy a company fully diluted after 62.5% of the equity, the overseas company has a social communication platform RC voice business. From December 31, 2013 onwards, the RC voice business formally merged into the tour of the financial statements.

Tour announces new employee incentive plan

In the years after the initial public offering in April 2009, the business boomed and diversified. While maintaining the successful growth of the online gaming business in China, the company has entered new business and product areas, and has developed overseas business. With the development of the company, the number of games and software research and development personnel has been increasing, the staff has reached a considerable scale. Swimming in the intelligence-intensive industries, the reserve and management of outstanding talents plays a decisive role in the success or failure of the company's development. The company is not only competing with online gaming companies, but also competing with large internet companies that have or will compete with businesses. In such a market environment, in order to maintain the effective competitiveness of talent, management of a larger workforce, the interests of employees and the interests of the company further linked, the company today announced three employee incentive plans for 10 years. According to these plans, employees who qualify for the program can receive incentive bonuses based on the company's profits or project profits. The cruise board approved the three plans on February 8, 2014.

Employees who qualify for the program will receive cash bonuses from the corresponding incentive scheme based on the amount of virtual internal dividend stocks held in their hands. The first plan is known as an All-in-one project internal dividend unit, in which the total number of employees who participate in the scheme can receive an annual dividend of up to 5% of the overall profit. The second plan, known as the fully-responsible project internal dividend unit, also provides a total of 5% annual dividends to the total of the overall profit after the tour adjustment. In total, the two schemes allocate a maximum of 10% of the total profit per year. The third plan is designed to allow employees involved in specific projects as the internal "shareholders" of the project to enjoy a total of not more than the maximum project profit of 20% of the total amount of dividends, the company called Love Shou-Heart project internal dividend shares.

Under the scheme, employees who qualify for the program will be able to participate in the program and receive annual rewards during their tour of office, after paying cash to purchase financial instruments. After satisfying certain conditions, employees may at any time during the tour to sell the financial instruments to other employees at their agreed prices, or to sell the financial instruments to the company at the principal price after they have satisfied certain conditions.

We plan to pass the whole, full responsibility, love heart these three kinds of project internal dividend shares, innovative new corporate benefit sharing model, transformation staff to become the real owner of the tour. Management believes that the implementation of these plans will inspire corporate ownership, encourage entrepreneurship, and motivate them to create better performance in their respective areas. The scheme is not only beneficial to employees but also to the overall interests of the company and its shareholders.

The progress of the stock repurchase scheme

July 27, 2013, the board approved a stock repurchase plan of up to 100 million dollars. According to the plan, the company will be able to buy back the cruise American Depository Stock (ADS) in the two years from July 27, 2013 to July 26, 2015.

The stock repurchase plan will follow the provisions of the 10B-18 rules under the Securities Exchange Act 1934, which are conducted by management in the open market at market prices. The time and quantity of repurchase vouchers in the US will depend on the company's management's assessment of market conditions, stock exchange prices and other factors. This stock repurchase plan can be suspended or terminated at any time.

As of December 31, 2013, the tour has bought 590,500 shares of US depository shares in accordance with the stock repurchase plan, with a total amount of USD 17.3 million.

Business outlook

For the first quarter of 2014, the tour is expected to:

Total revenue is expected to be between 174 million and 180 million dollars. Among them, net game income is estimated between 160 million dollars to 165 million U.S. dollars, online advertising revenue between 8 million U.S. dollars to 9 million dollars. 2014 in the first quarter of the net game revenue is expected to decline mainly because the company in the first quarter of 2014 did not launch "Tianlong eight" new information film Plan, "Tianlong Eight" income will fall, bringing online game revenue decline. In the first quarter of 2014, online advertising revenue is expected to decline mainly due to the first quarter's traditional seasonal off-season for the domestic advertising industry.

Non-US GAAP is expected to be a net loss of 16 million US dollars to 22 million U.S. dollars to the company. Non-US GAAP is expected to fall in the first quarter of 2014 due to a net loss attributable to the company in the first quarter of 2014 because of the above reasons, and in the first quarter of 2014, the company will increase the cost of PC-side software and mobile applications at home and abroad, and increase the investment in human resources

It is expected that non-US GAAP should be classified as a net loss of USD 0.30 to USD 0.42 per share of US depository receipts in the company.

Assuming that the new equity incentive is no longer granted, the cost of the equity incentive is expected to be between $500,000 and $1 million, and a net loss of us depository receipts for each share of the company will increase by 0.01 to $0.02.