The net revenue in the first quarter of the rice net was 11.7 million USD, which grew by 6.9% in the last quarter.

Summary: Yesterday, the rice net released Tuesday the company as of March 31, 2014, the first quarter without the audit results. Earnings showed that the net revenue in the first quarter of the rice net was $11.7 million, a 6.9% increase from the previous quarter, and a 21.9% increase over a year earlier;

Yesterday, the Rice net released Tuesday the company as of March 31, 2014, the first quarter without the audit results. Earnings showed the net revenue for the first quarter of the rice net was 11.7 million U.S. dollars, a 6.9% increase from the previous quarter, a 21.9% increase from a year earlier, and a net profit of $500,000 for ordinary shareholders, down 1 million from a year earlier.

Main results of the first quarter:

-Total net revenue was $11.7 million, up 6.9% from $10.9 million in the previous quarter, and 21.9% from 9.6 million dollars a year earlier.

Net revenue for online businesses was $9.4 million, up 13.6% from $8.2 million in the previous quarter, and 14.5% from 8.2 million a year earlier. In the first quarter, the net revenue of the clean rice net was mainly affected by seasonal factors; The annual growth of net revenue in the first quarter of the rice net was mainly contributed by the continued growth of the core virtual world business revenue.

-Offline business net revenue of 2.3 million U.S. dollars, compared with the last quarter of 2.7 million U.S. dollars down 13.6%, compared with the same period of 1.4 million U.S. dollar increase 64.6%. The net revenue of the first-quarter off-line business of the rice net fell, the main authorized business revenue decline, offset the interactive game business revenue growth to the impact of the company's performance; the first-quarter off-line net revenue of the rice network was increased year-on-year, benefiting from the company's interactive toy business contribution.

-The total cost of services was $3.2 million, up 7.6% from $2.9 million in the previous quarter, and 38.6% from 2.3 million a year earlier.

-Gross profit of $8.5 million, up 6.7% from $8 million in the previous quarter, and 16.7% from 7.3 million a year earlier. The first-quarter gross profit margin of the rice net was 73%, lower than the previous quarter's 73.2%, lower than the year 76.3%.

Operating expenses were $8 million trillion, up 34.8% from $5.9 million in the previous quarter, and 10.5% from 7.3 million a year earlier. The rice net's first-quarter product development spending was $3.2 million, down 13.8% from the 3.7 million dollar in the previous quarter, down 2.8% from 3.3 million a year earlier. Rice Net sales and marketing expenditure for the first quarter of 2.4 million U.S. dollars, compared with the last quarter of 2.9 million U.S. dollars slipped 17.6%, compared with the same period of 2.1 million U.S. dollar growth of 16.7%. Rice net the first quarter general and administrative expenditure for 3.6 million U.S. dollars, compared with the last quarter of 3.3 million U.S. dollar growth of 8.9%, compared with the same period a year ago 3 million U.S. dollar growth 22.3%.

-Operating profit of $500,000, down 74.4% from the 2.1 million dollar in the previous quarter, up 689.7% from 67,000 a year earlier.

-The net profit of ordinary shareholders in the first quarter was $500,000, less than $1.7 million in the previous quarter, and less than $1 million a year earlier. Rice net the United States depository receipts for the first quarter of a share of 0.01 U.S. dollars, less than the last quarter of 0.05 U.S. dollars, less than the previous year's 0.03 U.S. dollars.

-As at March 31, 2014, the rice net held a total cash and cash equivalent of USD 107.9 million and ended December 31, 2013 at $114.3 million.

Stock Repurchase:

The rice net bought 1,055,536 U.S. depository receipts in the first quarter of 2014. As of March 31, 2014, the rice net accumulated 2,119,713 shares of U.S. depository receipts, the average repurchase price of 4.9 U.S. dollars.

Performance Outlook:

The company expects net revenue from 10.5 million to $11 million in the second quarter of 2014, down 9% to 13% per cent year-on-year. The above expectations reflect the current and preliminary expectations of the rice net and may change in the future.