The perfect World Q4 operating profit 18.6 million U.S. dollars down 56%

March 8-The Perfect World (NASDAQ:PWRD) today announces its unaudited financial results for the fourth quarter and 2010 as of December 31, 2010.　　The operating income of this quarter is 593 million yuan (89.8 million U.S. dollars), the net profit of the company shareholder is 125.2 million yuan (1.9 billion USD).　　2010 Fourth quarter Performance summary This quarter business income is 593 million yuan (89.8 million US dollars), the last quarter is 658.2 million yuan, last year the same period was 607.9 million yuan　　This quarter margin of 482.3 million yuan (73.1 million U.S. dollars), the last quarter of 508.9 million yuan, the same period last year, 526.4 million yuan Operating profit for the quarter of 122.8 million yuan (18.6 million U.S. dollars), the last quarter of 211.9 million yuan, the same period last year, 276.5 million yuan.　　Non-US GAAP operating profit of this quarter is 147.3 million yuan (22.3 million U.S. dollars), the last quarter of 237.4 million yuan, the same period last year for 298.5 million yuan The net profit attributable to the company's shareholders this quarter was 125.2 million yuan (USD 19 million), which was 213.7 million yuan in the previous quarter and 270.8 million yuan in the same period last year.　　The net profit of non-US GAAP in the current quarter is 149.7 million yuan (22.7 million US dollars), which is 239.2 million yuan in the last quarter and 292.8 million yuan in the same period This quarter of the United States depository stocks basic and diluted net income of 2.50 yuan (0.38 U.S. dollars) and 2.36 yuan (0.36 U.S. dollars), respectively, the last quarter of 4.27 yuan and 4.05 yuan, respectively, the same period last year 5.44 Yuan and 5.09 yuan. 　　Non-U.S. GAAP this quarter, the basic and diluted net income of the United States depository shares is 2.98 yuan (0.45 U.S. dollars) and 2.82 yuan (0.43 U.S. dollars), respectively, the last quarter of 4.77 Yuan and 4.53 yuan, respectively, the same period last year, 5.88 Yuan and 5.50 yuan Company: October 21, 2010 launched the "Magic of the mainland (micro-Bo)" of the public test October 28, 2010 launched the "Sword of the Dragon (Micro-bo)" of the public test December 28, 2010 launched the "Ghost World (Micro-bo)" of the Global First Test 2010 Annual financial performance Summary of the year's operating income for 2,470.4 million yuan (USD 374.3 million), the previous year is 2,144.4 million yuan this year's gross margin of 2,025 yuan (7 million U.S. dollars), the previous year for 306.9 million yuan for the year's operating profit of879.3 million yuan (133.2 million US dollars), the previous year is 1,084.2 million Yuan. This year's non-US GAAP operating profit of 976.1 million yuan (147.9 million U.S. dollars), the previous year for 1,162.1 million yuan this year, the net profit attributable to the shareholders of the company is 840.7 million yuan (127.4 million USD), the previous year is 1, 37.2 million yuan.　　The net profit of this year's non-US GAAP is 937.5 million yuan (USD 142 million) for the company's shareholders, and the previous year is 1,115.1 million RMB The basic and diluted net income per share of American depository stocks in this year is 16.80 yuan (USD 2.55) and 15.87 yuan (2.41 USD) respectively, and the previous year was 20.57 Yuan and 19.28 RMB respectively. Non-U.S. GAAP this year the basic and diluted net income of US depository stocks is 18.73 yuan (USD 2.84) and 17.70 yuan (2.68 USD) respectively, the last year is 22.11 Yuan and 20.73 yuan, the perfect world chairman and CEO Mr. Chi said: "The past year has been full of challenges, and the company is in a transition period to extend the game's development cycle and devote more resources to large, long-term projects in order to increase the chances of success in the company's projects." These initiatives are designed to support the company's long-term sustainability, but the slowdown in the introduction of new game content over the past year does make our revenue growth less than in previous years. These, along with our investment in research and development and mergers and acquisitions activities, in the short term to the company's profit margins have increased pressure, and caused the temporary fluctuations in performance. However, we believe that the latest quarter and the past year have been the lows of corporate finance, and that the company's internal investment will start to match the external output in 2011 with the introduction of new game content. "Our efforts over the past year have been effective in the fourth quarter, when we launched three new games and a series of existing games in the fourth quarter." These new games, including the "God of the Devil" and "Ghost World", have won the enthusiastic welcome of gamers, and set up a good user base. As the impact of these new game content is on the revenue side, we expect a strong growth in the company's revenue in the first quarter of 2011. "The rich and deep game product line has been one of our greatest strengths." Our growing product lines include new projects to enter the development phase and some highly anticipated upcoming games, such as the "Days of the Dragon Slayer" and "The Laughing Pride of the River", adapted from a household novel in China. We continue to develop a variety of different styles of games to cater to the tastes of different players, so that we can have a broader user base. We look forward to the best of our product lines and the latest new variety of games available in 2011 andMore long-term future for the company to provide a number of performance growth points. "Professional Game studios and self-developed game engines allow us to have fine work in 2D, 2.5D and 3D gaming, and continue to deepen our brand in China while continuing to be popular." Whether from the scale of income or geographical coverage, we have been in China's online game export market to maintain a leading position. Over the past year, we have continued to sign new licensing agency agreements in a number of overseas markets and to launch more of our games through overseas game operators. We have also strengthened our overseas operating platform through subsidiaries in the United States and Europe and subsidiaries in Japan, C&c Media Co, Ltd. (' C&c media '). These overseas subsidiaries continue to be a growing source of revenue for the company. In addition, our strategic acquisition of Runic Games, Inc., a gaming studio located in Seattle, also strengthens our global research prowess and provides us with a powerful product line for globalisation. "2010 is certainly a challenging year, but we firmly believe that the decisions we make are necessary for the company's long-term sound growth." We are also convinced that the company's development has taken a new level, the strength is more abundant. Based on confidence in the long-term development prospects of the company, the Board of Directors has approved a stock repurchase plan, authorizing the perfect world to repurchase not more than 100 million U.S. dollars in the United States depository stocks during the period from March 2011 to March 2012. "Looking forward to the 2011 and the future, we are optimistic about the solid growth of our revenue and profits." The diversified product line will provide a number of growth points for the company's performance, and the existing core games will continue to provide a stable source of revenue for the company. We also expect our profit margins to pick up over the full year of 2011, starting with the first quarter. Our innovative strengths and further development capabilities and enhanced operational platforms through sustained investment will provide a good foundation for our recent development and long-term sustainability. "Financial results in the fourth quarter of 2010 business receipts for the quarter of 593 million yuan (89.8 million U.S. dollars), the last quarter of 658.2 million yuan, the same period last year, 607.9 million Yuan."　　The decrease in operating income from last quarter was mainly due to the absence of major film and television productions in the quarter, while the last quarter's hit TV series "Battle for Marriage" contributed to revenue in the third quarter of 2010. Online gaming revenue for the quarter was 526.2 million yuan (79.7 million U.S. dollars), the last quarter of 527.1 million yuan, the same period last year, 541.8 million yuan. Online gaming revenues were relatively flat compared with the previous quarter, despite the introduction of large data sheets for new games and existing core games this quarter. This is mainly due to the publicIn order to further enhance the attractiveness of the games in the early stages of the introduction of the new content of the game, the company deliberately slowed down the charging activities in the game this quarter. The average number of simultaneous online users (ACU) in China this quarter was about 999,000, the last quarter was 733,000, and 1,157,000 in the same period last year. The total number of active paid users (APC) operating in China this quarter, using prop-charging mode games, was about 1,402,000, the previous quarter was 1,274,000, and 2,188,000 in the same period last year. The average contribution of each active paying user in the Chinese mainland in the current quarter (ARPU) is 275 yuan, 323 yuan in the last quarter, and 223 yuan in the same period. The rise in game users in the quarter over the last quarter was mainly due to the strong performance of the company's latest games and the continued popularity of several of its existing games.　　The ARPU was lower than last quarter, mainly due to the dilution effect of the new games introduced in the fourth quarter of 2010. Overseas authorized income for this quarter is 57.8 million yuan (8.8 million U.S. dollars), the last quarter of 48.6 million yuan, the same period last year for 61.7 million yuan.　　The rise in overseas authorised income over the last quarter was mainly due to an increase in the initial authorized revenue generated by a series of overseas games commercialization, as well as continued growth in royalty-authorized use income. Film and other income for the quarter of 9 million yuan (1.4 million U.S. dollars), the last quarter of 82.5 million yuan, the same period last year for 4.5 million yuan.　　Most of the film and other revenues confirmed last quarter came from the hit TV series, "Battle for Marriage", and no similar major film and television productions were shown this quarter.　　Operating costs this quarter operating cost of 110.7 million yuan (16.8 million U.S. dollars), the last quarter of 149.3 million yuan, the same period last year for 81.5 million yuan. This quarter-related cost of online games is 102.3 million yuan (15.5 million U.S. dollars), the last quarter of 92.4 million yuan, the same period last year for 79.8 million yuan.　　The rise in online game-related costs in the quarter was mainly due to an increase in human costs, including the issuance of special year-end bonuses. Film and other costs for the quarter of 8.3 million yuan (1.3 million U.S. dollars), the last quarter of 56.9 million yuan, the same period last year for 1.7 million yuan.　　Most of the film and other costs identified last quarter were related to the TV series "Battle for Marriage", while no major film and television productions were released this quarter. Gross margin and gross profit margin of this quarter is 482.3 million yuan (73.1 million U.S. dollars), the last quarter of 508.9 million yuan, the same period last year for 526.4 million yuan. Gross margin of this quarter is 81.3%, the gross profit margin of the last quarter was 77.3%, the same period last yearRate of 86.6%.　　The fall in the quarter was mainly due to the absence of major film and television productions in the quarter, while the last quarter's hit TV series "Battle for Marriage" contributed to the company's performance in the third quarter of 2010. Operating costs this quarter operating costs of 359.5 million yuan (54.5 million U.S. dollars), the last quarter of 297 million yuan, the same period last year for 249.8 million yuan.　　The increase in operating costs over the last quarter was mainly due to increased sales and marketing costs, research and development costs, and management costs. Research and development costs for the quarter of 136.8 million yuan (20.7 million U.S. dollars), the last quarter of 113.8 million yuan, the same period last year, 76.9 million yuan. The rise in research and development costs over the last quarter was mainly due to an increase in human costs, including special year-end bonuses and reduced capitalization of research and development costs.　　In the fourth quarter of 2010, the company terminated the capitalization of the research and development costs of the two games after the official launch of the "Magic Continent" and the "Sword of the Dragon". Sales and market costs for the quarter of 155.2 million yuan (23.5 million U.S. dollars), the last quarter of 123.8 million yuan, the same period last year, 124.7 million yuan. The increase in sales and market costs in the last quarter was mainly due to the introduction of the new Game "God of magic" in the quarter, "The Sword of the Dragon" and "The Ghost World", as well as some of the existing games of large data, such as "The Sin" information film "Love Into God" and "Perfect World International Edition" of the "Perfect World International Version 2012" and so on, The resulting increase in advertising and promotional expenses.　　In addition, in the fourth quarter of 2010, the company also issued special year-end bonuses. The management cost of this quarter is 67.5 million yuan (10.2 million U.S. dollars), the last quarter of 59.4 million yuan, the same period last year for 48.3 million yuan. The rise in management costs over the last quarter was mainly attributable to the provision of bad debts for accounts receivable related to the film and television business. The company's film and television business in the continuous development.　　And the film and television business accounts receivable credit conditions, collection period and the characteristics of receivables and online games business is very different, so the company out of the conservative and prudent principle, in the fourth quarter for the film and television business accounts receivable accounted for a certain amount of bad debts prepared. Operating profit this quarter operating profit of 122.8 million yuan (18.6 million U.S. dollars), the last quarter of 211.9 million yuan, the same period last year, 276.5 million yuan. Non-U.S. GAAP operating profit of this quarter is 147.3 million yuan (22.3 million U.S. dollars), the last quarter of 237.4 million yuan, the same period last year for 298.5 million yuan. The decline in operating profit over the last quarter was mainly due to an increase in human costs, including the issuance of special year-end bonuses and the increase in advertising and market costs resulting from the introduction of a series of new games and large data sheets. Since the fourth quarter of 2010, the company adopted a cautious charging strategy at the beginning of the new game content, and in the new game contentThe higher sales and marketing costs and research and development costs that occurred before the launch led to a temporary increase in sales and market costs and research and development costs over revenue. Other earnings total the other gains this quarter amounted to 12.7 million yuan (1.9 million U.S. dollars), the last quarter of 6.8 million yuan, the same period last year for 11.8 million yuan.　　The increase in other earnings in the quarter over the previous quarter was mainly due to a rise in government subsidy revenues this quarter.　　Income tax charges for the quarter of 12.1 million yuan (1.8 million U.S. dollars), the last quarter of 17.1 million yuan, the same period last year for 17.5 million yuan. Net profit attributable to the shareholders of the company this quarter is 125.2 million yuan (19 million U.S. dollars), the net profit of the company shareholders, the last quarter of 213.7 million yuan, the same period last year 270.8 million yuan.　　This quarter, non-US GAAP attributable to the company's shareholders net profit of 149.7 million yuan (22.7 million U.S. dollars), the last quarter of 239.2 million yuan, the same period last year for 292.8 million yuan. This quarter of the United States depository stocks basic and diluted net income of 2.50 yuan (0.38 U.S. dollars) and 2.36 yuan (0.36 U.S. dollars), respectively, the last quarter of 4.27 yuan and 4.05 yuan, respectively, the same period last year 5.44 Yuan and 5.09 yuan.　　Non-U.S. GAAP this quarter, the basic and diluted net income of the United States depository stocks is 2.98 yuan (0.45 U.S. dollars) and 2.82 yuan (0.43 U.S. dollars) respectively, the last quarter was 4.77 yuan and 4.53 yuan, respectively, the same period last year, respectively, 5.88 Yuan and 5.50 yuan. Cash and cash equivalents as at December 31, 2010, the company's cash and cash equivalents amounted to 1,387.6 million RMB (USD 210.2 million). The total cash and cash equivalents of the company for the period ended September 30, 2010 amounted to 1,424 RMB 9 million.　　The company continued to receive cash inflows from online gaming operations, but the cash outflows from capital-protected financial products in the fourth quarter of 2010 resulted in a decrease in the balance of cash and cash equivalents.　　2010 Annual financial Results Operating income of the current year operating income of 2,470 4 million yuan (374.3 million U.S. dollars), the previous year for 2,144 4 million yuan. This year's online game revenue is 2,156 RMB 3 million yuan (326.7 million U.S. dollars), the previous year is 1,879.9 million yuan.　　The rise in online gaming revenues over the previous year was mainly attributable to the successful expansion of the company's operations overseas in North America and Japan, and the continued popularity of some of the company's existing core games. This year's overseas authorized income of 215 million yuan (32.6 million dollars), the previous year was 214.6 million yuan. Over the past few years, the company has received considerable overseas authorized income from Japan through its operating partner C&c media. In the second quarter of 2010, the company fully acquired C&c Media and began classifying its revenues as online gaming revenues.　　As a result, while the company continued to strengthen its penetration of the global market and to achieve an increase in overseas authorised income in several markets, the overall overseas authorized income was relatively flat over the previous year. This year's film and television and other income of 99.2 million yuan (15 million U.S. dollars), the previous year for 49.8 million yuan.　　Most of the film and other revenues confirmed this year are related to the "Battle of Marriage", the third-quarter hit TV series. Operating costs of this year's operating costs of 444.7 million yuan (67.4 million U.S. dollars), the previous year for 299.8 million yuan.　　The rise in operating costs over the previous year was mainly due to the increase in human costs, sales-related taxes and server depreciation costs resulting from the expansion of the company's overseas acquisitions and domestic game operations, as well as the increase in film and other costs resulting from the hit TV series "Battle for Marriage". Gross margin and gross profit margin of this year is 2,025 RMB 7 million yuan (306.9 million U.S. dollars), the previous year is 1,844.6 million Yuan.　　This year's gross margin is 82%, the previous year is 86%. Operating costs for the current year operating costs of 1,146 4 million yuan (173.7 million U.S. dollars), the previous year for 760.4 million yuan.　　The increase in operating costs over the previous year was mainly attributable to the expansion of the company's overall business and the expansion of talent and overseas acquisitions. Operating profit of this year's operating profit of 879.3 million yuan (133.2 million U.S. dollars), the previous year is 1,084.2 million Yuan. This year's non-US GAAP operating profit of 976.1 million yuan (147.9 million U.S. dollars), the previous year is 1,162.1 million yuan. In order to build higher quality products in the future to meet the rapidly changing industry demand, the company extended the game development cycle and invested more resources in long-term projects, while a large amount of investment in the development and expansion of the team. As a result, the company did not launch any new games before the last quarter of 2010, this has affected the revenue growth of the current year, but the company still generates higher sales and market costs before the new games are launched, and more research and development spending has been generated to build the future of the gaming product line.　　Thus, during this transition period in the past year, the cost growth has temporarily exceeded the income growth. Net profit attributable to the shareholders of the company this year is 840.7 million yuan (USD 127.4 million) in the net profit of the company's shareholders, and the previous year is 1,037.2 million RMB. Non-US GAAP this yearThe guideline belongs to the company shareholder's net profit is 937.5 million yuan (142 million US dollars), the previous year is 1,115.1 million yuan. The basic and diluted net income per share of American depository stocks in this year is 16.80 yuan (USD 2.55) and 15.87 yuan (2.41 USD) respectively, and the previous year was 20.57 Yuan and 19.28 RMB respectively.　　Non-US GAAP this year the basic and diluted net income of American depository stocks is 18.73 yuan (USD 2.84) and 17.70 yuan (2.68 USD) respectively, the previous year is 22.11 Yuan and 20.73 yuan respectively. Business outlook based on the company's current operating conditions, the company expects business receipts in the first quarter of 2011 to be roughly between 640 million yuan and 664 million yuan, an expected interval of 8% to 12% per cent this quarter.　　This is expected to take into account the company's existing games and recently launched the new "God of Magic", "Sword of the Dragon" and "Ghost World" is expected to bring revenue growth.　　The Board of the shares repurchase plan Company has authorized the perfect world to repurchase the US depository shares of companies not exceeding 100 million US dollars during the period from March 2011 to March 2012. Non-US GAAP financial indicators to supplement financial indicators prepared in accordance with United States GAAP This press release provides a net profit of non-US GAAP operating profit, non-US GAAP attribution to the company's shareholders, and non-US GAAP for each share of the United States depository stocks, which are respectively attributable to operating profit, The net profit attributable to the shareholders of the company and the net income deducted from the option incentive scheme for each share of US depository shares. The Company believes that these non-US GAAP financial indicators for investors understand the company's operating and financial performance, it is important to consistently compare business trends during different reporting periods and to understand the company's core operating results, as these non-US GAAP financial indicators deduct certain costs that are not expected to lead to cash expenditures. There are some restrictions on the use of financial indicators for non-US GAAP. Option incentive scheme fees have been generated and will occur again, but are not reflected in the use of non-US GAAP financial indicators. This cost should be taken into account in the overall assessment of our company's performance. None of the non-US GAAP financial indicators embody the net profit, operating profit, operating performance or liquidity index attributable to the Company's shareholders in accordance with U.S. GAAP. To make up for the above limitation, we have disclosed the relevant option incentive scheme fees when we adjust the non-US GAAP financial indicators to the most closely related US GAAP financial indicators, which should be taken into account when evaluating our company's performance. The above non-US GAAP financial indicators should be regarded as additional to the United States GAAP financial indicators, rather than as an alternative or more important than the financial indicators prepared in accordance with United States GAAP. This press release concludesSet out how to adjust the above non-US GAAP financial indicators to the most closely related US GAAP financial indicators. Conference call the perfect world will be in the U.S. Eastern Time March 7, 2011 Monday 8 o'clock in the evening (Beijing time March 8 Tuesday early 9 o'clock) conference calls and live webcast meetings to inform the Company's financial and operating conditions. (Edit/Xu Mingming)