The second half of the year net loss 45.7 million U.S. dollars to expand 30%

Sina Science and technology news Beijing time, April 18 morning, the Nineth City (Nasdaq:ncty) today released the third quarter of the fiscal year 2012 as at September 30 and the end of 2012 fiscal year as at December 31, without the audit results, merged into the second half of the financial year 2012. The report showed that the nine cities in the second half of the fiscal year net revenue of 51 million yuan (about 8.2 million U.S. dollars), than the last half of the 103.4 million yuan (about 16.6 million U.S. dollars) slipped 7%, compared with the same period last year, 55.1 million yuan (about 8.8 million U.S. dollars) slipped 7%. The net loss to ordinary shareholders in the second half of the city was 284.6 million yuan (about 45.7 million US dollars), and the net loss of 229.4 million yuan (about 36.8 million US dollars) in the last half of the fiscal year was enlarged by 24%, a net loss of 219.7 million yuan (about 35.3 million USD) over the same period last year. Expanded 30%. Nine cities in the third quarter net revenue of 32.4 million yuan (about 5.2 million U.S. dollars), than the second quarter of the renminbi 54.8 million yuan (about 8.8 million U.S. dollars) slipped 41%, compared with the same period last year, 27.2 million yuan (about 4.4 million U.S. dollars) rose 19%. Nine City quarter net revenue of 18.6 million yuan (about 3 million U.S. dollars), than the third quarter of the renminbi 32.4 million yuan (about 5.2 million U.S. dollars) slipped 43%, compared with the same period last year, 27.9 million yuan (about 4.5 million U.S. dollars) slipped 33%. Nine city in the third quarter the net loss attributable to ordinary shareholders was RMB 168.7 million (about 27.1 million U.S. dollars), the net loss in the second quarter of 118 million yuan (about 18.9 million U.S. dollars) widened 43%, compared with the net loss of the same period last year 93.7 million yuan (about 15 million U.S. dollars) widened 80% The net loss attributable to ordinary shareholders in the quarter was 115.9 million yuan (about 18.6 million US dollars), a 31% per cent decrease of 168.7 million yuan (about 27.1 million USD) in the net loss in the third quarter, and 126 million yuan (about 20.2 million US dollars) in net losses over the same period last year. The second half of the fiscal year main results:-Nine city in the second half of the fiscal year net revenue of 51 million yuan (about 8.2 million U.S. dollars), compared to the last half of the fiscal year, 103.4 million yuan (about 16.6 million U.S. dollars) slipped 7%, compared with the same period last year, 55.1 million yuan (about 8.8 million U.S. dollars) Nine city in the second half of the fiscal year, the net loss to ordinary shareholders is 284.6 million yuan (about 45.7 million U.S. dollars), a net loss of 229.4 million yuan (about 36.8 million US dollars) in the last fiscal year, and a 24% yuan (approximately $219.7 million) in net losses over the same period last year. Expanded 30%. "2012 is a tough year for the company because we have spent most of our resources on product development," said Zhu, chairman and chief executive of Kowloon City. I am pleased to announce that we are currently planningBetween June 2013 and September, three large multiplayer online games were launched, namely Planet Marginal 2, Firefall and Marvel 2. We plan to conduct a public test of "PlanetSide 2" in China on June 25, 2013 and expect to be tested on July 9, 2013 in the United States and Europe on the Firefall, as well as the "Miracle 2" to be tested in China on September 28, 2013. Our product development team has contributed a lot of resources to developing these games. We believe that these three massively multiplayer online games will help lead nine cities into a new era. We will continue to work on the development of online games, social games and mobile games, and are expected to achieve positive financial results over the next few years, consolidating our position as one of the top online game developers in the 2013 China market. Third-quarter financial analysis: Nine cities in the third quarter net revenue of 32.4 million yuan (about 5.2 million U.S. dollars), than the second quarter of the renminbi 54.8 million yuan (about 8.8 million U.S. dollars) slipped 41%, compared with the same period last year, 27.2 million yuan (about 4.4 million U.S. dollars) rose 19%. Nine City net revenue of the chain decline, mainly because of the "fairy biography" in the second quarter of the revenue and the higher level of revenue compared to a decline; the year-on-year increase in net revenue for nine cities was mainly due to the growth of the "immortal Biography", which began to operate commercially in August 2011. Nine city in the third quarter gross profit of 14.8 million yuan (about 2.4 million U.S. dollars), than the second quarter of the renminbi 38.8 million yuan (about 6.2 million U.S. dollars) slipped 62%, compared with the same period last year, 13.6 million yuan (about 2.2 million U.S. dollars) rose 9%. The quarter-on-quarter decline in the nine-city gross profit was mainly due to net revenue declines from the fairy biography and an increase in the amortization costs associated with the online shooting game "Firefall", which began small-scale operations in September 2012. Nine city gross profit year-on-year growth, mainly because of "immortal biography" net revenue growth. Nine city's operating expenses in the third quarter were 205 million yuan (about 32.9 million U.S. dollars), which grew 21% from the 168.8 million yuan (about 27.1 million US dollars) in the second quarter, and 141.4 million per cent (about 22.7 million US dollars) in the same period last year. The increase in operating expenditure in Kowloon City was mainly attributable to increased marketing spending associated with the games of "Firefall" and "PlanetSide 2", and the growth of product development spending related to Firefall and other networks and mobile games, as well as a loss in the third quarter, This loss is related to the company's investment in specific contractual arrangements and the reorganization activities that terminated those contractual arrangements. These contractual arrangements were between the nine cities and two variable interest entities, namely, the Fire Rain Network and the Wanyouyl, which mainly involved game development and operational activities. As a result of this reorganization measure, nine cities dismantled fire rain and WAnyouyl performance, accounting for 18.1 million yuan (about 2.9 million U.S. dollars) losses. Nine city in the third quarter equity incentive expenditure of 11.4 million yuan (about 1.8 million U.S. dollars), the previous quarter for 8.9 million yuan (about 1.4 million U.S. dollars), the same period last year, 10.8 million yuan (about 1.7 million U.S. dollars). Nine city in the third quarter interest income of 4.9 million yuan (about 800,000 U.S. dollars), the previous quarter for 6.5 million yuan (about 1 million U.S. dollars), the same period last year, 8.6 million yuan (about 1.4 million U.S. dollars). The decline in interest income in Kowloon City was mainly attributable to a decrease in cash balances. Nine city in the third quarter, the net loss to ordinary shareholders was 168.7 million yuan (about 27.1 million U.S. dollars), the net loss in the second quarter of 118 million yuan (about 18.9 million U.S. dollars) widened 43%, compared with the same period last year, 93.7 million yuan (about 15 million U.S. dollars) widened 80%. Nine city in the third quarter of the United States depository receipts fully diluted losses (U.S. depository receipts per share equivalent to a common stock) for 6.88 yuan (about 1.10 U.S. dollars), the previous quarter was 4.82 yuan (about 0.77 U.S. dollars), and the same period last year was 3.74 yuan (about 0.60 US dollars). Financial analysis of the quarter: nine cities in the quarter net revenue of 18.6 million yuan (about 3 million U.S. dollars), than the third quarter of the renminbi 32.4 million yuan (about 5.2 million U.S. dollars) slipped 43%, compared with the same period last year, 27.9 million yuan (about 4.5 million U.S. dollars) slipped 33%. Nine City net revenue decline, mainly because of "immortal biography" and other large multiplayer online games net revenue decline, as well as the dismantling of the "immortal biography" developers of the performance of the Rain Network. Nine City quarter gross loss of 1.3 million yuan (about 200,000 U.S. dollars), gross profit in the last quarter of the yuan 14.8 million yuan (about 2.4 million U.S. dollars) fell 3%, the same period last year gross profit of RMB 13.3 million yuan (about 2.1 million U.S. dollars) rose 7 times times. The change in gross profits (gross losses) in nine cities was mainly due to net revenue declines from immortal biography and other large multiplayer online games, as well as increased amortization costs associated with the Firefall. Nine city's operating expenses for the quarter were 148.9 million yuan (about 23.9 million U.S. dollars), down 27% from the 205 million yuan (about $32.9 million trillion) in the previous quarter, and 140.2 million per cent (about 22.5 million US dollars) over the same period last year. The year-on-year decline in operating expenditure in Kowloon City was mainly due to a decline in marketing spending, a decline in product development associated with mobile gaming, and a loss in the third quarter of the investment in contractual arrangements between nine cities and the Wanyouyl network and the termination of these contractual arrangements. Nine city operating expenditure year-on-year growth, mainly due to "Firefall" and "PlanetSide 2" two games related to theIncreased marketing spending. Nine city in the third quarter equity incentive expenditure of 7.3 million yuan (about 1.2 million U.S. dollars), the previous quarter for 11.4 million yuan (about 1.8 million U.S. dollars), the same period last year, 10 million yuan (about 1.6 million U.S. dollars). Nine City quarter interest income of 3.5 million yuan (about 600,000 U.S. dollars), the previous quarter for 4.9 million yuan (about 800,000 U.S. dollars), the same period last year, 7.1 million yuan (about 1.1 million U.S. dollars). The decline in interest income in Kowloon City was mainly attributable to a decrease in cash balances. The net loss attributable to ordinary shareholders in the fourth quarter of the nine cities was RMB 115.9 million (about 18.6 million US dollars), a decrease of 31% in the net loss of 168.7 million yuan (about 27.1 million US dollars) in the third quarter and a net loss of 126 million yuan (about 20.2 million USD) over the same period last year. Reduced by 8%. Nine cities in the quarter of the United States depository receipts fully diluted losses (US depository receipts per share equivalent to a common stock) for 4.73 yuan (about 0.76 U.S. dollars), the previous quarter was 6.88 yuan (about 1.10 U.S. dollars), and the same period last year was 5.14 yuan (about 0.83 US dollars). US Depository voucher repurchase plan: the nine City board approved a US depository voucher repurchase scheme in December 2012 that allows companies to repurchase US depository vouchers of up to $10 million worth for a period of 12 months. According to the US depository voucher repurchase scheme, as of April 11, 2013, nine cities have bought back about 1.6 million U.S. depository receipts, the total price of about 4.4 million U.S. dollars. Note: The exchange rate of RMB and US dollar in this earnings is: 1 USD = RMB 6.2301 yuan. The percentage figures in this earnings are based on the renminbi. Conference call: After the earnings release, the nine city management team will be in the United States Eastern Time April 17, 2013 Night 9 O'Clock (Beijing time April 18, 2013 9 o'clock in the morning) conference call, the nine city's financial performance and business operation activities to make a summary and interpretation. To listen to the conference call of the nine city, U.S. investors can call the toll-free number of +1-866-519-4004, mainland China Mobile users can call 400-620-8038, mainland fixed-line users can call 800-819-0121, Hong Kong, China investors can call + 852-2475-0994, Singapore and international investors can call +65-6723-9381, the password is "# 20122629". From US Eastern Time April 18, 2013 noon 12 O'Clock (Beijing time April 19 0 o'clock) 7 days, U.S. investors can call free telephone +1-855-452-5696, U.S. and international investors can call the toll phone + 1-646-254-3697, listen to nine City conference call recording, the password is "# 20122629". Moreover, the investor relations channel of the nine city website http://www.corp.the9.com will also broadcast the teleconference online. (Tangfeng)