Description
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Page
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Signature
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3
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Exhibit
99.1 — Second
Quarter Fiscal 2010 Results Dated August 9, 2010
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4
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Exhibit
99.2 — 2010
Second Quarter Results Presentation Dated August 9, 2010
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15
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Giant
Interactive Group Inc.
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By:
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/s/
Eric He
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Name:
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Eric
He
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Title:
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Chief
Financial Officer
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Date:
August 9, 2010
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Ÿ
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Net
revenue was RMB321.7 million (US$47.4 million), compared to RMB304.4
million in the first quarter 2010 and RMB364.1 million in the second
quarter 2009.
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Ÿ
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Gross
profit was RMB274.8 million (US$40.5 million), compared to
RMB259.3 million in the first quarter 2010 and RMB309.5 million in
the second quarter 2009. Gross profit margin for the second
quarter 2010 was 85.4%.
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Ÿ
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Net
income attributable to the Company’s shareholders was
RMB186.0 million (US$27.4 million), compared to RMB185.2
million in the first quarter 2010 and RMB231.9 million in the second
quarter 2009. The margin of net income attributable to the Company’s
shareholders for the second quarter 2010
was 57.8%.
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Ÿ
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Basic
and diluted earnings per American Depositary Share (“ADS”) were
RMB0.82 (US$0.12) and RMB0.79 (US$0.12), respectively, compared
to basic and diluted earnings per ADS of RMB0.82 and RMB0.79,
respectively, for the first quarter 2010, and basic and diluted earnings
per ADS of RMB1.03 and RMB0.99, respectively, for the second quarter
2009. Each ADS represents one ordinary
share.
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Ÿ
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Non-GAAP
net income attributable to the Company’s shareholders excluding non-cash
share-based compensation was RMB193.1 million (US$28.5 million),
compared to RMB189.7 million in the first quarter 2010 and
RMB239.8 million in the second quarter 2009. The margin of
non-GAAP net income attributable to the Company’s shareholders excluding
non-cash share-based compensation was
60.0%.
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Ÿ
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Basic
and diluted non-GAAP earnings excluding non-cash share-based compensation
per ADS were RMB0.85 (US$0.13) and RMB0.82 (US$0.12),
respectively, compared to basic and diluted non-GAAP earnings per ADS of
RMB0.84 and RMB0.81, respectively, for the first quarter 2010, and
basic and diluted non-GAAP earnings per ADS of RMB1.06 and RMB1.03,
respectively, for the second quarter
2009.
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Ÿ
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Active Paying Accounts (“APA”)
for online games was 1,435,000, an increase of 4.5% from the first quarter
2010 and an increase of 19.2% from the second quarter
2009.
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Ÿ
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Average Revenue Per User (“ARPU”)
for online games was RMB223.0, an increase of 1.4% from the first quarter 2010 and
a decrease of 25.7% from the second quarter
2009.
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Ÿ
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Average Concurrent Users (“ACU”)
for online games was 670,000, an increase of 13.9% from the first quarter 2010 and
an increase of 48.0% from the second quarter
2009.
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Ÿ
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Peak Concurrent Users (“PCU”) for
online games was 1,657,000, an increase of 2.8% from the first quarter 2010 and
an increase of 15.0% from the second quarter
2009.
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Three
months ended
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June
30,
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March
31,
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June
30,
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June
30,
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|||||||||||||
2009
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2010
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2010
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2010
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(RMB)
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(RMB)
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(RMB)
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(US$)
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GAAP
net income attributable to the Company’s shareholders:
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231,900,507 | 185,249,203 | 186,022,043 | 27,430,811 | ||||||||||||
Share-based
compensation
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7,896,476 | 4,437,390 | 7,054,023 | 1,040,186 | ||||||||||||
Non-GAAP
net income attributable to the Company’s shareholders:
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239,796,983 | 189,686,593 | 193,076,066 | 28,470,997 | ||||||||||||
Non-GAAP
earnings per share:
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Basic
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1.06 | 0.84 | 0.85 | 0.13 | ||||||||||||
Diluted
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1.03 | 0.81 | 0.82 | 0.12 | ||||||||||||
Weighted
average ordinary shares:
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Basic
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225,962,544 | 226,905,943 | 227,233,796 | 227,233,796 | ||||||||||||
Diluted
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233,923,536 | 234,423,481 | 234,089,527 | 234,089,527 |
Contacts:
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Investor
Contact (Shanghai):
Rich
Chiang, IR Manager
Giant
Interactive Group, Inc.
+86
21 6451 1258
ir@ztgame.com
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Investor
Relations (US):
Mahmoud
Siddig, Director
Taylor
Rafferty
+1
(212) 889 4350
giantinteractive@taylor-rafferty.com
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Investor
Relations (HK):
Ruby
Yim, Managing Director
Taylor
Rafferty
+852
3196 3712
giantinteractive@taylor-rafferty.com
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Media
Contact (US):
Jason
Marshall
Taylor
Rafferty
+1
(212) 889 4350
giantinteractive@taylor-rafferty.com
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Unaudited
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Unaudited
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Unaudited
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Unaudited
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June
30,
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March
31,
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June
30,
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June
30,
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2009
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2010
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2010
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2010
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ASSETS
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(RMB)
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(RMB)
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(RMB)
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(US$)
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Current
assets:
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Cash
and cash equivalents
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2,256,439,481 | 1,258,511,595 | 2,673,694,945 | 394,263,061 | ||||||||||||
Prepayments
and other current assets
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50,845,363 | 135,318,573 | 103,485,163 | 15,259,922 | ||||||||||||
Accounts
receivable
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1,257,511 | 8,503,479 | 16,275,111 | 2,399,928 | ||||||||||||
Due
from a related party
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- | 3,592 | 3,572 | 527 | ||||||||||||
Inventories
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832,660 | 531,462 | 353,439 | 52,118 | ||||||||||||
Deferred
tax assets
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70,227,540 | 72,690,876 | 76,447,887 | 11,273,005 | ||||||||||||
Short-term
investments
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2,777,975,000 | 3,781,575,000 | 2,323,180,000 | 342,576,126 | ||||||||||||
Available-for-sale
securities
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35,978,013 | - | - | - | ||||||||||||
Total
current assets
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5,193,555,568 | 5,257,134,577 | 5,193,440,117 | 765,824,687 | ||||||||||||
Non-current
assets:
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Property
and equipment, net
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200,573,072 | 162,035,634 | 149,935,585 | 22,109,502 | ||||||||||||
Intangible
assets, net
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110,406,132 | 120,244,401 | 116,565,240 | 17,188,710 | ||||||||||||
Due
from R&D entity partners
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- | 11,880,000 | 13,185,600 | 1,944,349 | ||||||||||||
Goodwill
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6,224,587 | 6,224,587 | 6,224,587 | 917,878 | ||||||||||||
Investment
in an equity investee
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- | 2,915,756 | 2,787,260 | 411,009 | ||||||||||||
Available-for-sale
securities
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444,341,125 | 441,717,532 | 427,248,585 | 63,002,077 | ||||||||||||
Held-to-maturity
securities
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- | 500,000,000 | 500,000,000 | 73,730,001 | ||||||||||||
Deferred
tax assets
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7,942,688 | 11,440,026 | 11,686,618 | 1,723,309 | ||||||||||||
Other
assets
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85,100,135 | 84,225,245 | 102,711,524 | 15,145,841 | ||||||||||||
Total
non-current assets
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854,587,739 | 1,340,683,181 | 1,330,344,999 | 196,172,676 | ||||||||||||
Total
assets
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6,048,143,307 | 6,597,817,758 | 6,523,785,116 | 961,997,363 | ||||||||||||
LIABILITIES
AND SHAREHOLDERS’EQUITY
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Current
liabilities:
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Payables
and accrued expenses
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112,112,791 | 82,969,129 | 103,541,179 | 15,268,183 | ||||||||||||
Advances
from distributors
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63,696,908 | 65,535,828 | 53,588,141 | 7,902,107 | ||||||||||||
Deferred
revenue
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345,580,565 | 337,988,705 | 352,121,774 | 51,923,877 | ||||||||||||
Unrecognized
tax benefit
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8,761,075 | 10,910,241 | 11,838,570 | 1,745,716 | ||||||||||||
Dividend
payable
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- | - | - | - | ||||||||||||
Tax
payable
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3,089,732 | 1,929,077 | 9,795,947 | 1,444,510 | ||||||||||||
Deferred
tax liabilities
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300,367 | 763,138 | 1,401,752 | 206,702 | ||||||||||||
Total
current liabilities
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533,541,438 | 500,096,118 | 532,287,363 | 78,491,095 | ||||||||||||
Non-current
liabilities:
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Deferred
tax liabilities
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- | 362,334 | 303,722 | 44,787 | ||||||||||||
Total
non-current liabilities
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- | 362,334 | 303,722 | 44,787 | ||||||||||||
Total
liabilities
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533,541,438 | 500,458,452 | 532,591,085 | 78,535,882 | ||||||||||||
Shareholders’
equity
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Ordinary
shares
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417 | 417 | 417 | 61 | ||||||||||||
(par
value US$0.0000002 per share;
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500,000,000
shares authorized as at June 30, 2009, March 31, 2010 and June
30, 2010 respectively; 263,110,626 shares issued and
226,441,541 shares outstanding at June 30, 2009, 263,110,626
shares issued and 227,071,403 shares outstanding at March 31,
2010, 263,110,626 shares issued and 227,348,625 shares
outstanding at June 30, 2010)
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Additional
paid-in capital
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6,016,036,431 | 6,044,070,848 | 6,054,941,806 | 892,861,728 | ||||||||||||
Statutory
reserves
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43,890,273 | 43,890,273 | 43,890,273 | 6,472,060 | ||||||||||||
Accumulated
other comprehensive loss
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(182,407,839 | ) | (222,632,263 | ) | (247,350,587 | ) | (36,474,318 | ) | ||||||||
Retained
earnings
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1,811,144,784 | 2,391,915,665 | 2,298,814,714 | 338,983,221 | ||||||||||||
Treasury
stock
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(2,176,792,033 | ) | (2,176,792,033 | ) | (2,176,792,033 | ) | (320,989,756 | ) | ||||||||
Total
shareholders’ equity
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5,511,872,033 | 6,080,452,907 | 5,973,504,590 | 880,852,996 | ||||||||||||
Non
controlling interest
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2,729,836 | 16,906,399 | 17,689,441 | 2,608,485 | ||||||||||||
Total equity
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5,514,601,869 | 6,097,359,306 | 5,991,194,031 | 883,461,481 | ||||||||||||
Total
liabilities and equity
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6,048,143,307 | 6,597,817,758 | 6,523,785,116 | 961,997,363 |
Three
months ended
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30-June
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31-Mar
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30-June
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30-June
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2009
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2010
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2010
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2010
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(RMB)
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(RMB)
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(RMB)
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(US$)
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Unaudited
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Unaudited
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Unaudited
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Unaudited
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Net
revenue:
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Online
game
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361,187,903 | 294,785,770 | 313,794,352 | 46,272,116 | ||||||||||||
Licensing
revenue
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2,886,593 | 9,454,605 | 7,551,922 | 1,113,606 | ||||||||||||
Other
revenue, net
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15,108 | 169,342 | 306,533 | 45,201 | ||||||||||||
Total
net revenue
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364,089,604 | 304,409,717 | 321,652,807 | 47,430,923 | ||||||||||||
Cost
of services
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(54,542,858 | ) | (45,140,545 | ) | (46,886,113 | ) | (6,913,826 | ) | ||||||||
Gross
profit
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309,546,746 | 259,269,172 | 274,766,694 | 40,517,097 | ||||||||||||
Operating (expenses)
income:
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Research
and product development expenses
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(29,000,215 | ) | (33,732,484 | ) | (33,125,895 | ) | (4,884,745 | ) | ||||||||
Sales
and marketing expenses
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(24,154,678 | ) | (29,606,702 | ) | (45,393,654 | ) | (6,693,748 | ) | ||||||||
General
and administrative expenses
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(31,943,066 | ) | (25,476,209 | ) | (25,729,485 | ) | (3,794,070 | ) | ||||||||
Government
financial incentives
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10,000,000 | 8,000,000 | 10,000,000 | 1,474,600 | ||||||||||||
Total
operating expenses
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(75,097,959 | ) | (80,815,395 | ) | (94,249,034 | ) | (13,897,963 | ) | ||||||||
Income
from operations
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234,448,787 | 178,453,777 | 180,517,660 | 26,619,134 | ||||||||||||
Interest
income
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22,960,827 | 31,247,683 | 30,454,426 | 4,490,810 | ||||||||||||
Other income
(expense), net
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343,347 | (3,504,035 | ) | (6,227,159 | ) | (918,257 | ) | |||||||||
Income
before income tax expenses, and share of loss of an equity
investee
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257,752,961 | 206,197,425 | 204,744,927 | 30,191,687 | ||||||||||||
Income
tax expense
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(25,880,718 | ) | (21,632,185 | ) | (20,041,347 | ) | (2,955,297 | ) | ||||||||
Share
of loss of an equity investee
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- | (84,244 | ) | (128,496 | ) | (18,948 | ) | |||||||||
Net
income
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231,872,243 | 184,480,996 | 184,575,084 | 27,217,442 | ||||||||||||
Net
loss attributable to non controlling interest
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28,264 | 768,207 | 1,446,959 | 213,369 | ||||||||||||
Net
income attributable to the Company’s shareholders
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231,900,507 | 185,249,203 | 186,022,043 | 27,430,811 | ||||||||||||
Other
comprehensive loss, net of tax
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Foreign
currency translation
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(1,593,290 | ) | (738,249 | ) | (12,480,121 | ) | (1,840,319 | ) | ||||||||
Unrealized
holding loss
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(14,808,606 | ) | (9,123,885 | ) | (12,238,203 | ) | (1,804,645 | ) | ||||||||
Total
other comprehensive loss, net of tax
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(16,401,896 | ) | (9,862,134 | ) | (24,718,324 | ) | (3,644,964 | ) | ||||||||
Comprehensive
income
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215,498,611 | 175,387,069 | 161,303,719 | 23,785,847 | ||||||||||||
Earnings
per share:
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Basic
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1.03 | 0.82 | 0.82 | 0.12 | ||||||||||||
Diluted
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0.99 | 0.79 | 0.79 | 0.12 | ||||||||||||
Weighted
average ordinary shares:
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Basic
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225,962,544 | 226,905,943 | 227,233,796 | 227,233,796 | ||||||||||||
Diluted
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233,923,536 | 234,423,481 | 234,089,527 | 234,089,527 |