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Shanda Interactive Entertainment Limited, incorporated in the Cayman Islands (“Shanda” or the “Company”) (Nasdaq: SNDA), a leading interactive entertainment media company in China, today announced that its Board of Directors has received a preliminary non-binding proposal letter from Mr. Tianqiao Chen, Chairman of the Board, Chief Executive Officer and President of Shanda, to acquire all of the outstanding ordinary shares of the Company not currently owned, legally or beneficially, by Mr. Tianqiao Chen, his wife Ms. Qianqian Luo, who is also a non-executive director of Shanda and his brother Mr. Danian Chen, who is also the Chief Operating Officer and a director of Shanda (together, the “Buyer Group”), for US$41.35 per American Depositary Share (“ADS”) or $20.675 per ordinary share in cash. As of September 30, 2011, the Buyer Group controlled approximately 68.4% of the outstanding shares of the Company (excluding outstanding options of the Company).
Archive for the ‘Financial’ Category
Shanda Announces Receipt of Non-Binding Proposal to Acquire All Outstanding Public Shares at $41.35 per ADS in Cash
October 17th, 2011 
Eric Hong Asia’s Leading Social Game Developer Happy Elements Raises $30 Million
October 16th, 2011 Eric Hong Top global social gaming developer Happy Elements today announced that it has raised $30 million in a Series B funding round. Led by Legend Capital with participation from existing investor DCM, the new funding will be used to expand more aggressively in Western markets and to make an entry into the mobile entertainment marketwith the launch of several new smartphone games in 2012. The capital will also be used to aggressively recruit diverse talent from across the globe and to strengthen its leadership position as the social game developer with the strongest overall presence in Asia’s principal markets.
NetDragon Announces 2011 Second Quarter and Interim Results
August 25th, 2011 Eric Hong NetDragon Websoft Inc. (“NetDragon”; Stock Code: 777), a leading developer and operator of online games and mobile Internet applications in China, today announced its unaudited interim financial results for the period ended June 30, 2011. Additionally, a management conference call and live webcast is scheduled at 7:00 PM Hong Kong time, August 25, 2011 to review financial results and recent business developments.
Second Quarter 2011 Financial and Operational Highlights
Net Revenue was RMB184.3 million, an increase of 17.6 % over the first quarter of 2011 (“QoQ”), and an increase of 53.4% over the second quarter of 2010 (“YoY”)
Revenue from Online Games was RMB174.9 million, an increase of 16.1% QoQ and an increase of 45.6% YoY
Revenue from Mobile Internet was RMB9.4 million, an increase of 54.8% QoQ and an increase of 2,250% YoY
Tencent Announces 2011 Second Quarter and Interim Results
August 10th, 2011 Eric Hong Tencent Holdings Limited (“Tencent” or the “Company”, SEHK 00700), a leading provider of Internet and mobile & telecommunications value-added services in China, today announced the unaudited consolidated results for the second quarter and the first half year of 2011 ended June 30, 2011.
Highlights of the First Half of 2011:
Total revenues were RMB13,077.5 million (USD2,020.7 million(1)), an increase of 47.0% over the first half of year endedJune 30, 2010 (“YoY”).
Revenues from Internet value-added services (“IVAS”) were RMB10,637.9 million (USD1,643.8 million), an increase of 52.6% YoY.
Revenues from mobile & telecommunications value-added services (“MVAS”) were RMB1,571.6 million (USD242.9 million), an increase of 21.6% YoY.
Revenues from online advertising were RMB793.2 million (USD122.6 million), an increase of 31.8% YoY.
Gross profit was RMB8,552.1 million (USD1,321,5 million), an increase of 40.6% YoY. Gross margin decreased to 65.4% from 68.4% for the first half of 2010.
Operating profit was RMB6,170.4 million (USD953.5 million), an increase of 36.5% YoY. Operating margin decreased to 47.2% from 50.8% for the first half of 2010.
Non-GAAP operating profit(2) was RMB6,317.8 million (USD976.2 million), an increase of 32.7% YoY. Non-GAAP operating margin decreased to 48.3% from 53.5% for the first half of 2010.
Profit for the period was RMB5,227.5 million (USD807.8 million), an increase of 40.0% YoY. Net margin decreased to 40.0% from 42.0% for the first half of 2010.
Non-GAAP profit for the period(2) was RMB5,296.1 million (USD818.4 million), an increase of 33.4% YoY. Non-GAAP net margin decreased to 40.5% from 44.6% for the first half of 2010.
Profit attributable to equity holders of the Company was RMB5,219.6 million (USD806.5 million), an increase of 41.1% YoY.
Non-GAAP profit attributable to equity holders of the Company(2) was RMB5,271.5 million (USD814.6 million), an increase of 34.0% YoY.
Basic earnings per share were RMB2.863. Diluted earnings per share were RMB2.800.
Giant Interactive Announces Second Quarter Fiscal 2011 Results
August 9th, 2011 Eric Hong Giant Interactive Group Inc. , one of China’s leading online game developers and operators, announced today its unaudited financial results for the second fiscal quarter ended June 30, 2011.
Second Quarter 2011 Highlights:
Net revenue was RMB436.2 million (US$67.5 million), an increase of 8.2% from the first quarter 2011 and an increase of 35.6% from the second quarter 2010.
Gross profit was RMB372.8 million (US$57.7 million), an increase of 9.5% from the first quarter 2011 and an increase of 35.7% from the second quarter 2010. Gross profit margin for the second quarter 2011 was 85.5%.
Net income attributable to the Company’s shareholders was RMB10.2 million (US$1.6 million), a decrease of 96.1% from the first quarter 2011 and a decrease of 94.5% from the second quarter 2010, which was due to the one-time accrued withholding tax associated with the repatriation of cash for a significant special dividend intended to be paid to shareholders during the third quarter 2011. The margin of net income attributable to the Company’s shareholders for the second quarter 2011 was 2.3%.[...]
UltiZen Games Aligns with GREE
August 8th, 2011 Eric Hong Today UltiZen Games Limited Shanghai (Headquarters: China Shanghai; CEO: Lan Haiwen; “UltiZen”), China browser and smartphone game developer and publisher announced the alliance with GREE, Inc. (Headquarters: Minato-ku, Tokyo; Founder and Chief Executive Officer: Yoshikazu Tanaka; Listed in the First Section of Tokyo Stock Exchange; Code: 3632; “GREE”).
GREE aspires to offering the “No.1″ community service which is widely utilized by the people all over the world by providing good quality contents to more users through the social game platforms for smartphones.
Under such circumstances, with the purpose of strengthening GREE’s developing ability of good quality contents and social games, GREE has formed a business collaboration with UltiZen which has bases in Shanghai, Beijing, and Tokyo and deploys the game development service. And today, both companies have entered into an agreement to acquire some of the shares of capital stock of UltiZen for further business collaboration and strengthening the relationship with UltiZen.
“We are very excited to align with GREE, the world leading mobile social network service provider,” said Lan Haiwen, chief executive officer at UltiZen. “The alliance opens an over 100 million user-based mobile social network for UltiZen to develop creative and interesting smartphone contents for. After GREE being the shareholder of UltiZen, the partnership between GREE and UltiZen could be even more fruitful.”
Perfect World Sold Its Film Business for 360M Yuan to Focus on Games
August 4th, 2011 daniel Perfect World Co., Ltd. (NASDAQ: PWRD), a leading online game developer and operator based in China, today announced that it has entered into a definitive agreement to sell Perfect World (Beijing) Pictures Co., Ltd., the entity that operates Perfect World’s film business, to Beijing Ever Joy Pictures Co., Ltd., for a total consideration of RMB360 million.
Beijing Ever Joy Pictures Co., Ltd is majority-owned by Michael Yufeng Chi, Perfect World’s chairman of the board and chief executive officer. The transaction has been approved by the board of directors and a special committee consisting of all independent directors of the board.
Perfect World said the transaction is expected to sharpen the company’s focus on its core online game development and operation business and maximize shareholder value over time.
Rumor: Kylin Games Raises Tens of Millions of Dollars
August 3rd, 2011 daniel It is said that Kylin Games recently had successfully raised tens of millions of dollars which lead by CDH Investments. Jin Shang, CEO of Kylin Games, has not commented on the rumor but said that they had enough fund to develop Sword of the Revolution OL.
Established on July 7, 2007 and headquartered in Beijing, Kylin Games is a leading third-generation online games operator in China. Kylin Games received its first round of financing ($15 million) in November 2008, which was another foreign capital injection in addition to the 40 million Yuan of angle investment Kylin Games had received in 2007. Kylin Games’ first online game Genghis Khan’s PCU had reached 200,000 but the Spirit Street and Genghis Khan 2 did not come up to expectation. Kylin Games’ COO Shanghu Xin redigned in May and has set up his own mobile gaming business.
Shanda Games Tang Qun Zhao: five hundred million USD for small and medium-sized teams
August 3rd, 2011 Eric Hong On SNDA’s game brand press conference All-Star during China Joy, Tan Qun Zhao says the company has held 500,000,000 USD especially for small and medium-sized teams of game production in China. The money will be invested to those teams as long as the company has got a desirable target.
Tan points out the money is mainly spent on those client , web and moblie phone based game producers and game launch platforms, while the latter is exclusively for launch abroad. “We are not hurry to get controlling the interest of small and medium-sized teams, we should firstly let them finish the works on the previous schedule.” Tan says. Before that, SNDA has acquired Mochimedia, an American game sales and distribution platform, and Eyedentity Games, a Korean producer for Dragon Nest.
Viewpoints of Changyou’s 2011Q2 Earnings Conference
August 2nd, 2011 daniel Changyou.com Limited (“Changyou” or the “Company”) (NASDAQ: CYOU), a leading online game developer and operator in China, yesterday announced its unaudited financial results for the second quarter ended June 30, 2011. Changyou’s CEO Tao Wang and CFO Jie He attended the conference and below are the viewpoints of Changyou’s recent situation:
New games to be released in China:
2011：During Q3 and Q4 of 2011, Battle Field OL, Tian Long Ba Bu 3(“TLBB 3″) and Ba Zhe Wu Shuan will be released;
2012：two or three original games and some agent games will be released in 2012, and San Jie Qi Yuan is one of them.
The current performance of Duke of Mount Deer:
1. The main strategy and goal of the game is to enlarge user base and making profits comes second;
2. The number of users has increased 20% compared to the first day of open beta testing and it is still increasing;
3. The first expansion pack of the game will be released in September, and then four expansion packs and one larger game version will be released every year to increase its user base;
4. The game now has 110 servers and its capacity is the same to TLBB;
5. The users who have played Duke of Mount Deer represent only 4% of Changyou’s TLBB users, which shows Duke of Mount Deer has little influence on the latter.
Financial situation and forecast:
1. 2011Q4’s marketing fee will decrease and the new games will contribute less to the revenues than expected;
2. Profit margin of 2011Q4 will remain normal at 40% to 50%;
3. As of June 30, 2011, Changyou had a net cash balance of nearly US$400 million, they have the ability to purchase other companies but they haven’t found proper targets.
Posted in Analyst meeting, mmo game company news 
Tags: 2011Q2, changyou, Earnings Conference 
No Comments »Hoolai Game Raises $20 Million Led by Sequoia Capital
August 1st, 2011 daniel Jiang Huang, CEO of Social games developer Hoolai Game, claimed yesterday that the company had raised $20 Million led by Sequoia Capital in the second round of financing. Several other foreign investment funds had joined with Sequoia Capital.
Hoolai Game’s popular social game Hoolai Three Kingdoms was released on Tencent’s Pengyou at the end of 2010 and on the QZone at March, 2011. Huang has revealed that the game’s DAU was over 10 million and its revenue was at Top3 of Tencent’s third party games.
Hoolai Game has closed its first round of financing before but the details were not revealed.
Boyaa received 6 million dollars from Sequoia Capital
August 1st, 2011 daniel Social games developer Boyaa today announced that it has received $6M in seed funding from Sequoia Capital. Kui Zhoul, partner of Sequoia Capital China, has entered Boyaa’s board of directors.
It is reported that Hongyi Zhou, Qihu’s CEO, was one of Boyaa’s investors and Zhou has cashed out all his shares ($3 million) after the funding.
Boyaa is one the earliest IT companies engaged in social network games and multimedia software development in China. The company has successfully developed Boyaa-Texas Poker, Happy Baby, and Monopoly etc. The company has performed very well in overseas markets.
Changyou Reports Second Quarter 2011 Results
August 1st, 2011 Eric Hong Beijing, China, August 1, 2011 – Changyou.com Limited (“Changyou” or the “Company”) (NASDAQ: CYOU), a leading online game developer and operator in China, today announced its unaudited financial results for the second quarter ended June 30, 2011.
Second Quarter 2011 Highlights
Total revenues reached a record US$105.0 million, an increase of 8% quarter-over-quarter and 35% year-over-year, and exceeded the high end of the Company’s guidance by US$5.0 million.
GAAP net income attributable to Changyou.com Limited reached a record US$54.2 million, up 3% quarter-over-quarter and 29% year-over-year, or US$1.02 per fully diluted ADS1.
Non-GAAP2 net income attributable to Changyou.com Limited (i.e., excluding share-based compensation expenses) reached a record US$55.6 million, or US$1.04 per fully diluted ADS, exceeding the high end of the Company’s guidance by US$5.1 million. Non-GAAP net income attributable to Changyou.com Limited was up 2% quarter-over-quarter and 26% year-over-year.
On May 11, 2011, the Company completed the acquisition of 68.258% of the equity in Shenzhen 7Road Technology Co., Ltd. (“7Road”), a Web-based game company in China. 7Road’s financial statements were consolidated in the Company’s financial statements starting on June 1, 2011
Each American depositary share (“ADS”) represents two Class A ordinary shares.
Explanation of the Company’s non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying “Non-GAAP Disclosure” and “Reconciliations to Unaudited Condensed Consolidated Statements of Operations.”
MIRAE ASSET:Tencent’s League of Legends touched 700K PCU
July 14th, 2011 Eric Hong We expect online game revenue to grow 6% q-q and 77% y-y in 1H11. Qzone revenue should outperform.Tencent’s new game, LOL touched 700K PCU after open beta on 25 May. QQ WWJ, launched on 15 March was unspectacular (<50K PCU). After a limited open beta with 2m test accounts, LOL is opening up for unlimited open beta on21 July. PCU has already touched 700K in early June with the limited beta testing, hence we believe unlimited open beta will quickly catapult the traffic of this game to more than 1m PCU. QB purchase of LOL items has already earned Tencent more than Rmb100m of deferred revenues, according to our channel check. We estimate most of this will be booked in 2Q.
Form SC 13G Changyou.com Ltd Filed by: HSBC Global Asset Management (Hong Kong) Ltd
July 14th, 2011 Eric Hong HSBC Global Investment Funds, a SICAV domiciled in Luxembourg, in the American Depositary Shares of Changyou.com Limited, amounted to 868,300 American Depositary Shares or 8.938% of the total outstanding American Depositary Shares at June 30, 2011.
