2014 Q2 Financial Update
Company Presentation
Q2 Financial Highlights (continued)
Income statement snapshot
Revenues
- Go series
- Mobile reading
- Mobile portal
- Others
Cost of revenues
Gross profit
Gross profit margin
Research and development expenses
Selling and marketing expenses
General and administrative expenses
Operating income
Investment income on short-term investment
Interest income
Income before income taxes
Income tax expense
Net income
Accretion of redeemable convertible preferred shares
Net income applicable to common stock
Non-GAAP Measure:
Adjusted EBIT
Adjusted net income
2013 Q2 2014 Q2
(RMB in millions)
80.0
100.1
36.9
52.9
24.9
18.0
13.4
14.5
4.8
14.7
(24.1)
(34.2)
55.9
65.9
69.9%
65.9%
(9.7)
(21.3)
(12.8)
(19.3)
(8.9)
(21.0)
24.5
4.3
0.4
0.1
7.3
24.6
12.0
(2.6)
(5.4)
22.0
6.6
(14.3)
7.7
6.6
24.7
22.2
18.2
20.1
Variance
(RMB in millions)
(%)
20.1
25.2
16.0
43.5
(6.9)
(27.7)
1.1
8.2
9.9
205.0
(10.1)
41.9
10.0
18.0
(4.0%)
(5.8)
(11.6)
119.6
(6.5)
50.8
(12.1)
136.0
(20.2)
(82.4)
0.4
100.0
7.2 7,200.0
(12.6)
(51.2)
(2.8)
107.7
(15.4)
(70.0)
14.3 (100.0)
(1.1)
(14.3)
(6.5)
(2.1)
(26.3)
(9.5)
1
Strong revenue growth
Quarterly revenues
(RMB in millions)
98.9
96.7
100.1
90.7
93.0
93.3
45.1
46.1
80.0
60.5
50.2
33.4
3.0
41.1
4.7
11.0
16.8
18.3
41.6
59.3
50.9
48.8
26.3
27.5
52.9
36.9
15.4
24.0
22.7
24.9
29.2
19.3
15.0
13.4
12.9
14.5
10.7
5.9
4.5
4.8
7.0
7.2
9.7
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
15.1
14.3
16.5
3.9
4.5
6.6
1Q12
2Q12
3Q12
GO series
27.5
14.5
11.5
11.5
18.0
Mobile reading
Mobile portal
18.0
14.5
10.7
14.7
2Q14
9.7
14.7
1Q14
2Q14
(excluding (excluding
GetJar) GetJar)
Others
2
Revenue growth driver
Mobile applications products & services - quarterly revenues breakdown
(RMB in millions)
50.9
41.6
15.7
7.9
11.0
3.0
4.7
0.8
3.1
1.3
0.4
4.1
7.1
8.8
1Q12
2Q12
3Q12
4Q12
Paid downloads
(1)
15.2
17.8
17.5
19.8
13.8
13.0
(1)
5.6
5.3
0.8
2.2
46.1
15.2
10.9
7.4
45.1
14.8
24.0
15.4
48.8
17.8
17.8
36.9
8.9
52.9
20.1
15.9
17.4
16.1
15.3
3Q13
4Q13
1Q14
2Q14
16.1
15.3
1Q14
2Q14
11.0
1Q13
2Q13
Advertising
Distribution
(excluding (excluding
GetJar)
GetJar)
Paid downloads revenue in 2Q2013 includes recognition of deferred revenues of RMB5.2 million due to adjustment in product support policy of Next Launcher
3
Operating expenses
Operating expenses breakdown
(RMB in millions)
61.5%
57.9%
39.3%
61.5%
55.6%
61.6
57.9%
61.6
54.0
51.0%
54.0
53.8
21.0
21.0
47.4
19.4
19.4
27.1
23.9
31.4
19.3
8.9
19.3
17.6
17.6
10.4
9.5
12.8
21.3
17.0
16.3
2Q2014
(excluding GetJar)
1Q2014
21.3
14
9.7
2Q2013
R&D
2Q2014
Selling & Marketing
G&A
2Q2014
1Q2014
(excluding
GetJar)
17.0
2Q2014
(excluding
GetJar)
as % of revenue
4
Balance sheet and working capital
Balance sheet snapshot
Cash and time deposit
Accounts receivable, net
Others
Total current assets
PP&E and intangible assets
Goodwill
Other non-current assets
Total non-current assets
March 31, 2014 June 30, 2014
(RMB in millions)
718.7
712.3
99.0
91.7
73.7
103.8
891.4
907.8
Variance
(RMB in millions)
(6.4)
(7.3)
30.1
16.4
(%)
(0.9)
(7.4)
40.8
1.8
33.0
16.2
7.9
57.1
36.1
16.2
23.2
75.5
3.1
15.3
18.4
9.4
193.7
32.2
Total assets
948.5
983.3
34.8
3.7
Accounts payable
Accrued expenses and others
Income tax payable
Total current liabilities
12.0
52.0
11.0
75.0
10.4
58.4
14.6
83.4
(1.6)
6.4
3.6
8.4
(13.3)
12.3
32.7
11.2
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
0.2
3.0
3.2
1.1
1.2
2.3
0.9
(1.8)
(0.9)
450.0
(60.0)
(28.1)
Total liabilities
78.2
85.7
7.5
9.6
Total shareholders’ equity
870.3
897.6
27.3
3.1
Total liabilities and shareholders’ equity
948.5
983.3
34.8
3.7
5
Balance sheet and working capital (continued)
Accounts receivable days (1)
(days)
95
83
82
2Q2013
2Q2014
2Q2014…
92
1Q2014
94
95
1Q2014
(excluding GetJar)
2Q2014
(excluding GetJar)
82
2Q2014
(1) Account receivable days is calculated based on the account receivable at the end of that period divided by the revenue of the respective period, multiplied by
the number of days in the period (365 days for annual, and 182.5 for semi-annual)
6
Balance sheet and working capital (continued)
Accounts payable days (1)
(days)
31
2Q2013
28
2Q2014
25
2Q2014
(excluding GetJar)
34
1Q2014
28
29
2Q2014
1Q2014
(excluding GetJar)
25
2Q2014
(excluding GetJar)
(1) Account payable days is calculated based on the account payable at the end of that period divided by the cost of revenue of the respective period, multiplied by
the number of days in the period (365 days for annual, and 182.5 for semi-annual)
7
Balance sheet and working capital (continued)
Cash and time deposit balance
(RMB in millions)
96.1
712.3
707.2
718.7
712.3
715.3
707.2
424.0
424.0
424.0
424.0
424.0
424.0
288.3
283.2
294.7
288.3
291.3
283.2
1Q14
2Q14
96.1
2Q13
2Q142Q14 (excluding GetJar)
Cash and cash equivalent
1Q14 (excluding 2Q14 (excluding
GetJar)
GetJar)
Time deposit
8