Yi Long third quarter net loss of 50.4 million yuan: expansion

Beijing time November 14 morning News, Art Dragon (Nasdaq:long) released today, as of September 30, the third quarter of fiscal year 2013, without the audit earnings. Earnings showed that the arts dragon in the third quarter net revenue of 296.9 million yuan (about 48.5 million U.S. dollars), compared with the same period last year, 197.3 million yuan (about 31.4 million U.S. dollars) growth of 51%, net loss of RMB 50.4 million yuan, compared to the same period last year, the net loss of 33.1 million yuan has widened.

Main achievements:

-Arts Dragon Total revenue in the third quarter (excluding business tax and surcharge) for RMB 316 million yuan, compared with the same period last year, the RMB 211.9 million growth 49%;

-Art Dragon third-quarter net revenue (included in business tax and surcharge) for 296.9 million yuan (about 48.5 million U.S. dollars), compared with the same period last year, 197.3 million yuan (about 31.4 million U.S. dollars) growth of 51%;

-Art dragon in the third quarter of the net loss of 50.4 million yuan, compared to the same period last year, the net loss of 33.1 million yuan has expanded;

-In the third quarter, the number of nights booked by the Art Dragon was 7.7 million days, up 68% from 4.6 million days of the same period last year;

-Arts dragon in the third quarter of the Hotel commission income of 255.2 million yuan (about 41.7 million U.S. dollars), compared with the same period last year, 156.6 million yuan (about 24.9 million yuan) growth of 63%;

-Art Dragon third quarter Mobile hotel reservation volume in the Total hotel room night in the proportion of more than 25%, higher than the previous quarter of 20%. Art Dragon Mobile Application Cumulative Download volume more than 35 million times.

Cui, chief executive of the Art Dragon, said: "In the third quarter, the number of hotel rooms booked through the art Dragon set a record of 7.7 million days, up 68% from a year earlier." We are implementing the Mobile hotel strategy and have been updating the mobile user experience. With more than 35 million cumulative downloads, the mobile service accounts for more than 25% of the total number of nights in the hotel rooms. ”

Financial Analysis:

Art Dragon third quarter total revenue (excluding business tax and surcharge) for RMB 316 million yuan, compared with the same period last year, the RMB 211.9 million growth 49%. Art Dragon third-quarter net revenue (included in the business tax and surcharge) for 296.9 million yuan (about 48.5 million U.S. dollars), compared with the same period last year, 197.3 million yuan (about 31.4 million U.S. dollars) growth of 51%.

Arts Dragon in the third quarter from the hotel booking business revenue of 255.2 million yuan, compared with the same period last year, 156.6 million yuan growth of 63%, mainly due to the art of booking hotel rooms, the increase in the number of days, but the average rate of each hotel room is offset by the decline. In the third quarter, the number of hotel rooms booked by Art Dragon was 7.7 million days, an increase of 68%. Art Dragon Third

The average commission for each hotel room fell 3% per cent over the same period last year, mainly due to lower daily average prices. Art Dragon in the third quarter revenue from hotel bookings accounted for 81% of total revenue, up from 74% in the same period last year.

Art Dragon in the third quarter from the airline ticket booking business revenue of 35.2 million yuan, with the same period last year, mainly thanks to the booking by the Art Dragon ticket number of growth, but by each ticket received a commission of the decline partially offset. Art Dragon in the third quarter, each ticket received a year-on-year decline of 23%, mainly because the company implemented a discount ticket booking measures, and the average price of the ticket has slipped. The third quarter through the art Dragon booked 863,000 tickets, an increase of 30%. Art Dragon in the third quarter of the total revenue of air tickets accounted for 11%, lower than the same period last year 17%.

Art Dragon The other business receipts in the third quarter were RMB 25.6 million, which grew 28% from 20.1 million yuan in the same period last year, and accounted for 8% per cent of total revenue, down from 9% in the same period last year. Art Dragon Other business income mainly from the company's website advertising revenue, tourism insurance business and parcel business, the third quarter of this revenue growth is mainly due to advertising revenue and travel insurance revenue growth.

The Arts Dragon's gross profit margin for the third quarter was 75%, up from 70% in the same period last year, largely offset by a decline in the average commission per hotel room due to a shift in operational efficiency and business portfolio to mobile and online booking services.

Art Dragon in the third quarter of the total operating expenses of 281.4 million yuan, compared with the same period last year 195 million yuan growth of 44%. Art Dragon's total operating expenditure accounted for 95% of net revenue in the third quarter, down from 99% in the same period last year. Art Dragon in the third quarter operating loss of 57.9 million yuan, the same period last year operating losses of 56.2 million yuan.

Art Dragon third-quarter service development expenditure of 48.3 million yuan, compared with the same period last year 33.4 million yuan growth of 45%, in net revenue accounted for 16%, lower than the same period last year 17%. The growth of the development expenditure of Art Dragon service is mainly due to the growth of employee related expenditure and equity incentive expenditure. Art Dragon Service development expenditure mainly includes the expenses related to technology and product supply, including website, platform and other related system development expenditure, and supplier relation function.

Art Dragon third quarter sales and marketing expenditure of 211.7 million yuan, compared with the same period last year, 144.7 million yuan growth of 46%, in net revenue accounted for 72%, lower than the same period last year 74%. The growth in sales and marketing spending in the third quarter was mainly due to growth in mobile and online marketing spending, increased advertising spending, and the growth of hotel commissions paid to affiliated institutions.

Art Dragon in the third quarter of the general and administrative expenditure of 20.5 million yuan, compared with the same period last year, 16.2 million yuan growth of 26%, in net revenue accounted for 7%, lower than the same period last year 8%. Art Dragon in the third quarter of the general and administrative expenditure growth, mainly due to the growth of equity incentive expenditure.

Art Dragon third quarter other income (including interest income, exchange losses and other profits/expenses) was RMB 16.5 million, the same period last year other income is RMB 16.2 million yuan.

Yi Long third quarter income tax expenditure for 9.6 million yuan, the same period last year income tax revenue is 7.2 million yuan. Art Dragon Income tax expenditure and income change, mainly because of the RMB 12.7 million yuan of deferred tax assets valuation allowance.

As of September 30, 2013, the Art Dragon's holdings of cash and cash equivalents, short-term investments and restricted cash amounted to RMB 1.9 billion (about 307 million U.S. dollars), almost all in the form of renminbi.

Art Dragon in the third quarter net loss of 50.4 million yuan, compared with the same period last year, the net loss of 33.1 million yuan expanded.

Art Dragon in the third quarter of the United States depository receipts of the basic and diluted losses are 1.44 yuan (about 0.24 U.S. dollars), the same period last year, the United States depository receipts of the basic and diluted earnings are 0.96 yuan (about 0.16 U.S. dollars).

Performance Outlook:

Art Dragon estimates that net revenue for the 2013 fiscal year, which included a sales tax and a surcharge, grew 20% to 30% per cent year-on-year. This performance outlook reflects the company's current and preliminary views and may be adjusted in the future.

Conference：

After the release of the earnings, the Arts Dragon will be the eastern Time November 13 19:30 (Beijing time November 14 8:30) conference call. The art management will then attend the conference call to interpret the earnings points and answer questions from investors and analysts. To listen to the art Dragon Conference call, U.S. investors can call free phone +1-866-844-9413, Hong Kong investors in China can

Call +852-3001-3802, Mainland Chinese investors can call toll-free 10800-712-1470 (China Unicom) or 10800-120-1470 (Chinese telecom) or toll 86-400-810-4731, international investors can call + 1-210-795-0512, the password is "ELONG".