UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2011
Commission File Number: 001-34988
SKY-MOBI LIMITED
10/F, Building B, United Mansion
No. 2, Zijinghua Road, Hangzhou
Zhejiang 310013
People’s Republic of China
(86-571) 8777-0978
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-N/A
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SKY-MOBI LIMITED | ||
| By: | /s/ Carl Yeung | |
| Name: | Carl Yeung | |
| Title: | Chief Financial Officer | |
Date: November 17, 2011
EXHIBIT INDEX
| Page | ||||
Exhibit 99.1 – Press Release | 4 | |||
3
Exhibit 99.1
| Contact: | ||
| Sky-mobi Limited | CCG Investor Relations | |
| Mr. Carl Yeung, CFO | Elaine Ketchmere, Partner and VP | |
| Phone: + (86) 571-87770978 (Hangzhou) | Phone: +(1) 310-954-1345 (Los Angeles) | |
| Email:ir@sky-mobi.com | Email: elaine.ketchmere@ccgir.com |
Sky-mobi Limited Announces Unaudited Financial Results for the Fiscal Second Quarter 2012
HANGZHOU, China, November 14, 2011 – Sky-mobi Limited (“Sky-mobi” or the “Company”) (NASDAQ: “MOBI”), a leading mobile application store and mobile social network community operator in China, announced today its unaudited financial results for the fiscal second quarter ended September 30, 2011 (“second quarter 2012”).
Second Quarter 2012 Highlights
| • | Total revenues decreased 0.4% to RMB173.2 million (US$27.2 million) in second quarter 2012, compared to the fiscal second quarter ended September 30, 2010 (“second quarter 2011”). Revenues collected from third party channels, i.e., revenues not collected through mobile network operators, represented 15.2% of total revenues |
| • | Profit from operations was RMB6.2 million (US$1.0 million) in second quarter 2012, up 313.1% from second quarter 2011 |
| • | Non-IFRS profit from operations was RMB18.9 million (US$3.0 million) in second quarter 2012, up 40.5% from second quarter 2011 |
| • | Net profit was RMB7.1 million (US$1.1 million) in second quarter 2012, compared to net loss of RMB24.3 million in second quarter 2011 |
| • | Non-IFRS net profit was RMB19.8 million (US$3.1 million) in second quarter 2012, up 69.4% from second quarter 2011 |
| • | Basic and diluted earnings per common share (“EPS”) were RMB0.03 (US$0.00). Non-IFRS basic and diluted earnings per common share were RMB0.08 (US$0.01) |
| • | Basic and diluted earnings per ADS1 were RMB0.22 (US$0.03). Non-IFRS basic and diluted earnings per ADS were RMB0.61 (US$0.10) |
| • | Revenues collected from carrier channels decreased 9.2% to RMB143.7 million (US$22.5 million) in second quarter 2012 from second quarter 2011. Sky-mobi’s application store experienced a record 4.9 billion user visits with 845.2 million downloads in second quarter 2012 |
| • | Revenues collected from third party channels increased 89.7% to RMB26.3 million (US$4.1 million) in second quarter 2012 from second quarter 2011. Sky-mobi had 16.7 million active members of the Maopao Community with 1.4 billion member log-ins in second quarter 2012 |
Non-IFRS figures exclude share-based compensation expenses and other non-operating one-time items. Please see “About Non-IFRS Financial Measures” in this release for more information.
Commenting on the Company’s results, Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi, remarked: “Our second quarter revenues were in line with our expectations. We continued to make good progress in socializing the Maopao application store, introducing 17 new single-user applications with social functions through the OPENSKY platform. This resulted in a 45 million year-over-year increase in the number of downloads to a near record 845.2 million. The Maopao Community grew to a record 16.7 million active users with 1.4 billion member logins.”
“We continue to invest heavily in Android in order to best position Sky-mobi once Android handset shipments reach meaningful levels early next year. We recently made a strategic investment in an Android ROM developer and have a strong pipeline in development. Following the launch of a card game center in September, we plan to launch a full Android community including an application store, PC suite and multimedia player by year end,” Mr. Song continued.
“We anticipate a continued growth in our user base, along with higher monetization rates, as we expand our relationships with leading Chinese social media and content partners, such as the recently announced SINA Weibo that went live on our community, encourage developers to provide compelling content via OPENSKY and establish our Android infrastructure. We are also exploring opportunities to expand our relationships beyond service providers to include carriers.” Mr. Song concluded.
| 1 | American Depositary Shares, which are traded on the NASDAQ, each represents eight ordinary shares of the Company. |
Commenting on the Company’s results, Carl Yeung, Chief Financial Officer of Sky-mobi, said: “As our business becomes more established, we are better able to streamline our operations and manage costs to benefit from operating leverage. As a result, we saw significant improvement in gross margin and profitability during this quarter, with non-IFRS gross margin expanding 560 basis points to 34% and non-IFRS net income increasing almost 70% on a year over year basis. Going forward, we will continue to manage our business prudently while making strategic investments to ensure our profitable growth.”
Financial Results for Second quarter 2012
Total Revenues
Sky-mobi analyzes revenue from two perspectives: by source and business unit. Beginning in fiscal 2012, the Company has expanded its disclosure to provide details on both.
Revenues by source is broken down into three categories: “Revenues collected from carrier channels”, “Revenues collected from third party channels”, and “Other revenues.” Previously, these sources were defined as “Application store revenues”, “Maopao Community revenues through K Currency” and “Other revenues” respectively.
Revenues by business unit is broken down into: “Application store revenues”, “Maopao Community revenues” and “Other revenues”.
| For the three months ended | ||||||||||||
| September 30, | ||||||||||||
| 2010 | 2011 | 2011 | ||||||||||
| In thousands | (RMB) | (RMB) | (US$) | |||||||||
| (unaudited) | ||||||||||||
Revenues by source: | ||||||||||||
Revenues collected from carrier channels | 158,332 | 143,735 | 22,537 | |||||||||
Revenues collected from third party Channels | 13,886 | 26,341 | 4,130 | |||||||||
Other revenues | 1,694 | 3,107 | 487 | |||||||||
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Total revenues | 173,912 | 173,183 | 27,154 | |||||||||
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| For the three months ended | ||||||||||||
| September 30, | ||||||||||||
| 2010 | 2011 | 2011 | ||||||||||
| In thousands | (RMB) | (RMB) | (US$) | |||||||||
| (unaudited) | ||||||||||||
Revenues by business unit: | ||||||||||||
Application store revenues | 158,332 | 138,927 | 21,783 | |||||||||
Maopao Community revenues | 13,886 | 31,149 | 4,884 | |||||||||
Other revenues | 1,694 | 3,107 | 487 | |||||||||
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Total revenues | 173,912 | 173,183 | 27,154 | |||||||||
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The discussion and analysis below focuses on revenues by source, as the Company believes it is more useful to investors in analyzing and understanding its business model.
Total revenues for second quarter 2012 decreased 0.4% to RMB173.2 million (US$27.2 million) compared to RMB173.9 million for second quarter 2011.
Revenues collected from carrier channels of RMB143.7 million (US$22.5 million) in second quarter 2012, representing 83.0% of total revenues, decreased 9.2% from second quarter 2011. Sky-mobi had 4.9 billion user visits and 845.2 million downloads of applications and content from the Maopao application store in second quarter 2012, an increase of 48.5% and 5.7%, respectively, compared to 3.3 billion user visits and 799.5 million downloads in second quarter 2011. The growth in application store user activity was offset by lower store monetization rate as a result of policies introduced by mobile network operators requiring multiple confirmations on SMS-based purchases of mobile applications and content, including triple-confirmation introduced in September 2010. For the September 2011 quarter, downloads grew by 45.7 million year-over-year mainly due to the introduction and promotion of 17 single-user applications that leveraged the OPENSKY platform.
Revenues collected from third party channels were RMB26.3 million (US$ 4.1 million), up 89.7% from second quarter 2011 and contributing 15.2% of total revenues in second quarter 2012. Sky-mobi’s Maopao Community had 16.7 million active members and 1.4 billion member log-ins in second quarter 2012, representing an increase of 77.7% and 131.4%, respectively, compared to 9.4 million active members and 622.5 million member log-ins in second quarter 2011. Revenues from the community increased due to the fast growth in the number of active members as well as the increased spending per active member resulting from the success of “Fantasy of Three Kingdoms,” a mobile social game. The Company expects that revenues collected from third party channels will contribute an increasing percentage of total revenues in the quarters ahead as Sky-mobi continues to focus on growing its active mobile community member base and on diversifying revenue collection away from carrier-based payment channels.
Cost of Revenues and Gross Profit
Total cost of revenues for second quarter 2012 decreased 7.8% to RMB115.2 million (US$18.1 million) compared to RMB124.9 million in second quarter 2011.
Total non-IFRS cost of revenues for second quarter 2012 decreased 8.1% to RMB114.3 million (US$17.9 million) compared to RMB124.4 million in second quarter 2011.
For the three months ended September 30, | ||||||||||||
| 2010 | 2011 | 2011 | ||||||||||
| In thousands | (RMB) | (RMB) | (US$) | |||||||||
| (unaudited) | ||||||||||||
Cost of revenues: | ||||||||||||
Costs associated with payment to industry participants | 113,322 | 105,169 | 16,490 | |||||||||
Direct costs | 11,577 | 10,015 | 1,570 | |||||||||
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Total cost of revenues: | 124,899 | 115,184 | 18,060 | |||||||||
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Gross Margin | 28.2 | % | 33.5 | % | ||||||||
Non-IFRS cost of revenues: | ||||||||||||
Costs associated with payment to industry participants | 113,322 | 105,169 | 16,490 | |||||||||
Direct costs | 11,118 | 9,174 | 1,438 | |||||||||
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Total non-IFRS cost of revenues: | 124,440 | 114,343 | 17,928 | |||||||||
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Non-IFRS Gross Margin | 28.4 | % | 34.0 | % | ||||||||
Non-IFRS cost of revenues is defined as cost of revenues excluding share-based compensation expenses. The discussion and analysis below focus on non-IFRS cost of revenue, as the Company believes variances on cost of revenues excluding share-based compensation would reflect the operating performance better.
Costs associated with payments to industry participants decreased 7.2% to RMB105.2 million (US$16.5 million) in second quarter 2012 compared to RMB113.3 million in second quarter 2011, which was primarily due to the decrease in revenues collected from carrier channels.
Direct costs including salaries and benefits, depreciation, office expenses and utilities directly related to the operation of Maopao application store decreased 17.5% to RMB9.2 million (US$1.4 million) in second quarter 2012 compared to RMB11.1 million in second quarter 2011. The decrease was mainly due to the shift of business focus on R&D to the Maopao Community from the Maopao application store which is consistent with the Company’s overall strategy and business transition initiatives.
Gross profit for second quarter 2012 increased 18.3% to RMB58.0 million (US$9.1 million) compared to RMB49.0 million in second quarter 2011. Non-IFRS gross margin in second quarter 2012 was 34.0%, up from 28.4% in second quarter 2011, mainly due to more contribution from revenue collected from third party channels as a result of increased use of third-party payment agents.
Operating Expenses (representing the total amount of research and development expenses, sales and marketing expenses, general and administrative expenses and other income and expense)
Total operating expenses primarily consisting of employee salaries and benefits, training expenses, travelling, entertainment and office related expenses increased 9.1% in second quarter 2012 to RMB51.8 million (US$8.1 million) from RMB47.5 million in second quarter 2011.
Total non-IFRS operating expenses increased 10.9% in second quarter 2012 to RMB40.0 million (US$6.3 million) from RMB36.0 million in second quarter 2011.
For the three months ended September 30, | ||||||||||||
| 2010 | 2011 | 2011 | ||||||||||
| In thousands | (RMB) | (RMB) | (US$) | |||||||||
| (unaudited) | ||||||||||||
Operating expenses: | ||||||||||||
Research and development expenses | 12,888 | 18,007 | 2,824 | |||||||||
Sales and marketing expenses | 12,045 | 11,199 | 1,756 | |||||||||
General and administrative expenses | 22,588 | 22,197 | 3,481 | |||||||||
Other income and expense | — | 433 | 68 | |||||||||
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Total operating expenses | 47,521 | 51,836 | 8,129 | |||||||||
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Non-IFRS operating expenses: | ||||||||||||
Research and development expenses | 10,794 | 15,348 | 2,407 | |||||||||
Sales and marketing expenses | 11,006 | 10,195 | 1,599 | |||||||||
General and administrative expenses | 14,239 | 13,991 | 2,194 | |||||||||
Other income and expense | — | 433 | 68 | |||||||||
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Total non-IFRS operating expenses | 36,039 | 39,967 | 6,268 | |||||||||
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Non-IFRS operating expenses is defined as operating expenses excluding share-based compensation expenses. The discussion and analysis below focus on non-IFRS operating expenses, as the Company believes it is more useful to investors to understand variances in relation to operating activities.
The increase in operating expenses was primarily due to the increase in headcount, as described below, and in efforts to improve third-party payment system functions to cope with largely increased revenues collected from third-party channels, as well as business development on Maopao Community.
| As of September 30, | ||||||||||||
| 2010 | 2011 | % change | ||||||||||
Headcount | ||||||||||||
Operations | 99 | 148 | 49.5 | % | ||||||||
Research and development | 260 | 330 | 26.9 | % | ||||||||
Sales and marketing | 107 | 111 | 3.7 | % | ||||||||
General and administrative | 65 | 82 | 26.2 | % | ||||||||
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Total Headcount | 531 | 671 | 26.4 | % | ||||||||
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The Company’s employee headcount increased 26.4% to 671 as of September 30, 2011 from 531 as of September 30, 2010. The increase in headcount was to support Android and Maopao Community based business strategies.
Net profit and EPS
Net profit in second quarter 2012 was RMB7.1 million (US$1.1 million) compared to a loss of RMB24.3 million in second quarter 2011.
Non-IFRS net profit in second quarter 2012 increased 69.4% to RMB19.8 million (US$3.1 million) from RMB11.7 million in second quarter 2011.
Basic and diluted earnings per common share in second quarter 2012 were RMB0.03 (US$0.00) and basic and diluted earnings per ADS were RMB0.22 (US$0.03).
Non-IFRS basic and diluted earnings per common share in second quarter 2012 were RMB0.08 (US$0.01), and non-IFRS basic and diluted earnings per ADS were RMB0.61 (US$0.10).
The weighted average number of ADSs used to calculate basic and diluted earnings per ADS for second quarter 2012 were 32,173,725 and 32,212,057 respectively.
Each ADS represents eight common shares.
Other Operating Data
The following table sets forth total user downloads of our single-user applications and contents titles for the period indicated:
For the three months ended September 30, | ||||||||||||
| In millions | 2010 | 2011 | % change | |||||||||
Application Store | ||||||||||||
User visits | 3,319.6 | 4,930.1 | 48.5 | % | ||||||||
Single-user applications and contents downloads | ||||||||||||
Single-player games | 361.1 | 323.2 | -10.5 | % | ||||||||
Multimedia applications and content titles | 162.0 | 132.4 | -18.3 | % | ||||||||
Other single-user applications | 276.4 | 389.6 | 40.9 | % | ||||||||
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Total Single-user applications and contents downloads | 799.5 | 845.2 | 5.7 | % | ||||||||
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The following table sets forth the number of registered, active members and member log-ins in our Maopao Community as of the date indicated:
| As of September 30, | ||||||||||||
| In millions | 2010 | 2011 | % change | |||||||||
Number of registered members | 44.6 | 118.9 | 166.5 | % | ||||||||
For the three months ended September 30, | ||||||||||||
| In millions | 2010 | 2011 | % change | |||||||||
Maopao Community | ||||||||||||
Number of active members | 9.4 | 16.7 | 77.7 | % | ||||||||
Number of member log-ins | 622.5 | 1,440.4 | 131.4 | % | ||||||||
Common Shares
Sky-mobi had 257,389,800 common shares outstanding as of September 30, 2011 and 153,185,442 common shares outstanding as of September 30, 2010.
Business Outlook
For the fiscal third quarter 2012 ending December 31, 2011, Sky-mobi expects total revenues to be in the range of RMB 163 million to RMB 171 million.
These are Sky-mobi’s current projections, which are subject to change. You are cautioned that operating results in second quarter 2012 are not necessarily indicative of operating results for any future periods.
Other Announcements
On October 24, 2011, Sky-mobi entered into a strategic agreement with SINA Corporation. Under the terms of the agreement, SINA Weibo’s microblogging service will be made available via plug-ins to Sky-Mobi’s Maopao mobile social network. SINA will give Sky-mobi the exclusive rights to promote Weibo products on its feature phone application platform. The Company will generate revenue based on the new users that join through Maopao based on the activity of users on the Maopao platform.
On October 13, 2011, Sky-mobi purchased a 5% stake in MoKee, an Android ROM developer for approximately RMB0.8 million. MoKee currently develops ROMs designed to improve the functionality, performance, speed, standby battery life and overall user experience for Android handsets. MoKee has a strong following, and its ROMs are currently in use on over 300,000 handsets in China.
Conference Call and Webcast
Sky-mobi’s management team will host a conference call today November 14, 2011 at 8:00 AM ET, (or 5:00 AM U.S. Pacific Time and 9:00 PM, November 14, 2011 Beijing/Hong Kong time). A live audio webcast of the conference call will be available on Sky-mobi’s website athttp://ir.sky-mobi.com/events.cfm. To listen to the conference call, please use the dial in numbers below:
USA Toll Number: 1-877-275-8968
International: +1-706-643-1666
Passcode: 25058282
A replay of the call will be available for two weeks following the call and can be accessed on the Company website or by dialing the numbers below:
USA Toll Number: 1-855-859-2056
International: +1-404-537-3406
Passcode: 25058282
About Non-IFRS Financial Measures
To supplement its consolidated financial statements presented in accordance with International Financial Reporting Standards, or IFRS, Sky-mobi uses several non-IFRS financial measures defined below. The Company believes both management and investors benefit from referring to non-IFRS financial measures in assessing the Company’s performance and prospects for the future. Specifically, the Company believes that non-IFRS financial measures provide meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of the Company’s operating performance.
The presentation of this additional information is not meant to be considered superior to, in isolation from or as a substitute for results prepared in accordance with IFRS. A limitation of using non-IFRS cost of revenues, gross profit, operating expenses, profit from operations, net profit and net profit per share is that these non-IFRS measures exclude the share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in the business. Management compensates for these limitations by providing specific information regarding the IFRS amounts excluded from each non-IFRS measure. For more information on these non-IFRS financial measures, please see the tables captioned “Reconciliations of non-IFRS financial measures to comparable IFRS measures” contained elsewhere in this release.
Definitions of Non-IFRS Measures
Non-IFRS cost of revenues is defined as cost of revenues excluding share-based compensation expenses.
Non-IFRS gross profitis defined as revenues less non-IFRS cost of revenues.
Non-IFRS operating expenses is defined as operating expenses excluding share-based compensation expenses.
Non-IFRS profit from operations is defined as Non-IFRS gross profit less non-IFRS operating expenses.
Non-IFRS net profit is defined as non-IFRS profit from operations plus/minus other gains or losses, less finance cost, share of results of associates and income tax, excluding non-cash expenses from changes of fair value of preferred shares and warrants.
Non-IFRS basic and diluted earnings per common share/ADS are defined as non-IFRS profit after tax divided by weighted average outstanding shares/ADSs during the period.
Explanatory Notes
This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3780 to US$1.00, the exchange rate as average exchange rate during the quarter as set forth in the H.10 statistical release of the Federal Reserve Board.
When calculating number of users of Maopao application store, Sky-mobi counts an individual who uses a particular handset with a particular SIM card to access Maopao as one user. Therefore, an individual who accesses Maopao through one handset with two SIM cards separately will be counted as two users, while an individual who accesses Maopao through two handsets using the same SIM card will also be counted as two users.
The number of downloads of application and content titles on Maopao refers to the number of requests made by mobile users for downloading a particular application or a content title, or for authorization to access to a specified feature of a particular application or a content title from Maopao. There may be multiple download requests made by a user for an application depending on the complexity of the application and whether interruptions occurred during the downloading process.
The number of active members of the Maopao Community refers to the number of registered members who logged on to the Maopao Community at least twice during a month for the relevant quarter.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as “believes,” “expects,” “anticipates,” “intends,” “estimates,” the negative of these terms, or other comparable terminology. Such statements, including the statements relating to the Company’s business outlook, are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Potential risks and uncertainties include the effectiveness, profitability, and marketability of the Company’s solutions; the Company’s limited operating history; measures introduced by the PRC government and mobile network operators aimed at mobile applications-related services; the Company’s ability to maintain cooperation relationships with handset companies, content providers and payment service providers; its dependence on mobile service providers, and ultimately mobile network operators, for the collection of a substantial majority of its revenues; billing and transmission failures, which are often beyond the Company’s control; its ability to compete effectively; its ability to capture opportunities in the expected growth of the smart phone market; its ability to obtain and maintain all applicable permits and approvals; general economic and business conditions; the volatility of the Company’s operating results and financial condition; the Company’s ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
About Sky-mobi Limited
Sky-mobi Limited operates the leading mobile application store in China as measured by revenues in 2010, according to Analysys International. The Company works with handset companies to pre-install its Maopao mobile application store on handsets and with content providers to provide users with applications and content titles. Users of its Maopao store can browse, download, and enjoy a range of applications and content, such as single-player games, mobile music, and books. The Company’s Maopao store enables mobile applications and content to be downloaded and run on various mobile handsets with different hardware and operating system configurations. The Company also operates a mobile social network community in China, the Maopao Community, where it offers mobile social games, as well as applications and content with social network functions to its registered members. The Company is based in Hangzhou, the People’s Republic of China. For more information, please visit: www.sky-mobi.com.
FINANCIAL TABLES FOLLOW
Sky-mobi Limited
Unaudited Consolidated Statements of Comprehensive Income Data (IFRS)
For the three months ended September 30, | For the six months ended September 30, | |||||||||||||||||||||||
| 2010 | 2011 | 2011 | 2010 | 2011 | 2011 | |||||||||||||||||||
| In thousands | (RMB) | (RMB) | (US$) | (RMB) | (RMB) | (US$) | ||||||||||||||||||
| (Except for share and per share data) | ||||||||||||||||||||||||
Revenues | 173,912 | 173,183 | 27,154 | 336,681 | 339,214 | 53,186 | ||||||||||||||||||
Cost of revenues | (124,899 | ) | (115,184 | ) | (18,060 | ) | (236,221 | ) | (234,003 | ) | (36,690 | ) | ||||||||||||
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Gross profit | 49,013 | 57,999 | 9,094 | 100,460 | 105,211 | 16,496 | ||||||||||||||||||
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Research and development expenses | (12,888 | ) | (18,007 | ) | (2,824 | ) | (24,831 | ) | (31,701 | ) | (4,971 | ) | ||||||||||||
Sales and marketing expenses | (12,045 | ) | (11,199 | ) | (1,756 | ) | (19,677 | ) | (19,013 | ) | (2,982 | ) | ||||||||||||
General and administrative expenses | (22,588 | ) | (22,197 | ) | (3,481 | ) | (43,142 | ) | (42,482 | ) | (6,661 | ) | ||||||||||||
Other income and expense | — | (433 | ) | (68 | ) | — | 2,270 | 356 | ||||||||||||||||
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Total operating expenses | (47,521 | ) | (51,836 | ) | (8,129 | ) | (87,650 | ) | (90,926 | ) | (14,258 | ) | ||||||||||||
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Profit from operations | 1,492 | 6,163 | 965 | 12,810 | 14,285 | 2,238 | ||||||||||||||||||
Other gains and losses | 7,210 | 1,619 | 254 | 10,180 | 2,600 | 408 | ||||||||||||||||||
Finance cost | — | — | — | (4,333 | ) | — | — | |||||||||||||||||
Share of results of associates | (1,060 | ) | (188 | ) | (30 | ) | (2,735 | ) | (460 | ) | (73 | ) | ||||||||||||
Loss on changes in fair value of convertible redeemable preferred shares | (29,251 | ) | — | — | (59,620 | ) | — | — | ||||||||||||||||
Loss on changes in fair value of warrants | (1,981 | ) | — | — | (4,051 | ) | — | — | ||||||||||||||||
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Profit (loss) before tax | (23,590 | ) | 7,594 | 1,189 | (47,749 | ) | 16,425 | 2,573 | ||||||||||||||||
Income tax expenses | (676 | ) | (518 | ) | (82 | ) | (5,817 | ) | (1,851 | ) | (291 | ) | ||||||||||||
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Profit (loss) for the period | (24,266 | ) | 7,076 | 1,107 | (53,566 | ) | 14,574 | 2,282 | ||||||||||||||||
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Total comprehensive profit (loss) for the period | (24,266 | ) | 7,076 | 1,107 | (53,566 | ) | 14,574 | 2,282 | ||||||||||||||||
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Total profit (loss) and comprehensive profit (loss) attributable to Owners of the company | (23,891 | ) | 7,079 | 1,107 | (53,191 | ) | 14,577 | 2,282 | ||||||||||||||||
Non-controlling interests | (375 | ) | (3 | ) | (0 | ) | (375 | ) | (3 | ) | (0 | ) | ||||||||||||
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| (24,266 | ) | 7,076 | 1,107 | (53,566 | ) | 14,574 | 2,282 | |||||||||||||||||
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Earnings (loss) per common share | ||||||||||||||||||||||||
Basic | (0.16 | ) | 0.03 | 0.00 | (0.35 | ) | 0.06 | 0.01 | ||||||||||||||||
Diluted | (0.16 | ) | 0.03 | 0.00 | (0.35 | ) | 0.06 | 0.01 | ||||||||||||||||
Weight average number of ADS | ||||||||||||||||||||||||
| 19,148,180 | 32,173,725 | 18,624,795 | 32,173,725 | |||||||||||||||||||||
| 19,148,180 | 32,212,057 | 18,624,795 | 32,395,929 | |||||||||||||||||||||
Weight average number of shares | ||||||||||||||||||||||||
Basic | 153,185,442 | 257,389,800 | 148,998,356 | 257,389,800 | ||||||||||||||||||||
Diluted | 153,185,442 | 257,696,452 | 148,998,356 | 259,167,431 | ||||||||||||||||||||
Unaudited Reconciliations of non-IFRS financial measures
to comparable IFRS financial measures
For the three months ended September 30, | For the six months ended September 30, | |||||||||||||||||||||||
| 2010 | 2011 | 2011 | 2010 | 2011 | 2011 | |||||||||||||||||||
| In thousands | (RMB) | (RMB) | (US$) | (RMB) | (RMB) | (US$) | ||||||||||||||||||
| (Except for share and per share data) | ||||||||||||||||||||||||
IFRS cost of revenues | (124,899 | ) | (115,184 | ) | (18,060 | ) | (236,221 | ) | (234,003 | ) | (36,690 | ) | ||||||||||||
Less: share-based compensation expenses | 459 | 841 | 132 | 920 | 1,683 | 264 | ||||||||||||||||||
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Non-IFRS cost of revenues | (124,440 | ) | (114,343 | ) | (17,928 | ) | (235,301 | ) | (232,320 | ) | (36,426 | ) | ||||||||||||
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IFRS gross profit | 49,013 | 57,999 | 9,094 | 100,460 | 105,211 | 16,496 | ||||||||||||||||||
Add: share-based compensation expenses | 459 | 841 | 132 | 920 | 1,683 | 264 | ||||||||||||||||||
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Non-IFRS gross profit | 49,472 | 58,840 | 9,226 | 101,380 | 106,894 | 16,760 | ||||||||||||||||||
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Total IFRS operating expenses | (47,521 | ) | (51,836 | ) | (8,129 | ) | (87,650 | ) | (90,926 | ) | (14,258 | ) | ||||||||||||
Less: share-based compensation expenses | 11,482 | 11,869 | 1,861 | 22,869 | 23,429 | 3,673 | ||||||||||||||||||
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Total non-IFRS operating expenses | (36,039 | ) | (39,967 | ) | (6,268 | ) | (64,781 | ) | (67,497 | ) | (10,585 | ) | ||||||||||||
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IFRS profit from operations | 1,492 | 6,163 | 965 | 12,810 | 14,285 | 2,238 | ||||||||||||||||||
Add: share-based compensation expenses | 11,941 | 12,710 | 1,993 | 23,789 | 25,112 | 3,937 | ||||||||||||||||||
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Non-IFRS Profit from operations | 13,433 | 18,873 | 2,958 | 36,599 | 39,397 | 6,175 | ||||||||||||||||||
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IFRS Profit (loss) for the period | (24,266 | ) | 7,076 | 1,107 | (53,566 | ) | 14,574 | 2,282 | ||||||||||||||||
Add: share-based compensation expenses | 11,941 | 12,710 | 1,993 | 23,789 | 25,112 | 3,937 | ||||||||||||||||||
Add: loss on changes in fair value of warrants | 1,981 | — | — | 4,051 | — | — | ||||||||||||||||||
Add: loss on changes in fair value of convertible redeemable preferred shares | 29,251 | — | — | 59,620 | — | — | ||||||||||||||||||
Less: exchange gain relating to change in fair value of warrants | (7,228 | ) | — | — | (9,766 | ) | — | — | ||||||||||||||||
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Non-IFRS net profit for the period | 11,679 | 19,786 | 3,100 | 24,128 | 39,686 | 6,219 | ||||||||||||||||||
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Non-IFRS earnings per common share | ||||||||||||||||||||||||
Basic | 0.08 | 0.08 | 0.01 | 0.16 | 0.15 | 0.02 | ||||||||||||||||||
Diluted | 0.08 | 0.08 | 0.01 | 0.16 | 0.15 | 0.02 | ||||||||||||||||||
Weight average number of shares | ||||||||||||||||||||||||
Basic | 153,185,442 | 257,389,800 | 148,998,356 | 257,389,800 | ||||||||||||||||||||
Diluted | 153,185,442 | 257,696,452 | 148,998,356 | 259,167,431 | ||||||||||||||||||||
Sky-mobi Limited
Unaudited Consolidated Statements of Financial Position (IFRS)
As of June 30, | As of | |||||||||||
| September 30, | September 30, | |||||||||||
| 2011 | ||||||||||||
| In thousands | (RMB) | (RMB) | (US$) | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 331,906 | 272,621 | 42,744 | |||||||||
Term deposits | 199,431 | 283,549 | 44,457 | |||||||||
Trade and other receivables | 82,845 | 85,930 | 13,473 | |||||||||
Amounts due from related parties | 2,818 | 3,070 | 481 | |||||||||
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Total current assets | 617,000 | 645,170 | 101,155 | |||||||||
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Non-current assets | — | |||||||||||
Property and equipment | 41,806 | 41,464 | 6,501 | |||||||||
Investments in associates | 1,328 | 1,140 | 179 | |||||||||
Other non-current assets | — | 963 | 151 | |||||||||
Deferred tax assets | 5,886 | 4,756 | 746 | |||||||||
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Total non-current assets | 49,020 | 48,323 | 7,577 | |||||||||
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Total assets | 666,020 | 693,493 | 108,732 | |||||||||
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EQUITY AND LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 126,206 | 132,677 | 20,802 | |||||||||
Income tax liabilities | 11,153 | 10,543 | 1,653 | |||||||||
Amounts due to related parties | 404 | 1,185 | 186 | |||||||||
Deferred revenue | 7,118 | 7,906 | 1,240 | |||||||||
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| |||||||
Total current liabilities | 144,881 | 152,311 | 23,881 | |||||||||
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Total liabilities | 144,881 | 152,311 | 23,881 | |||||||||
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Equity | ||||||||||||
Share capital | 92 | 92 | 14 | |||||||||
Share premium | 635,116 | 635,116 | 99,579 | |||||||||
Reserves | 126,340 | 139,050 | 21,802 | |||||||||
Deficit | (240,409 | ) | (233,330 | ) | (36,584 | ) | ||||||
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Equity attributable to owners of the Company | 521,139 | 540,928 | 84,811 | |||||||||
Non-controlling interests | — | 254 | 40 | |||||||||
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| |||||||
Total equity | 521,139 | 541,182 | 84,851 | |||||||||
Total equity and liabilities | 666,020 | 693,493 | 108,732 | |||||||||
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