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 August 2014
Commission File Number: 001-35729
YY INC.
Building 3-08, Yangcheng Creative Industry Zone
No. 309 Huangpu Avenue Middle
Tianhe District
Guangzhou 510655
The Peoples Republic of China
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x |
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Form 40-F o |
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): o
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): o
SIGNATURES
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.
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YY INC. | |
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By: |
/s/ Eric He |
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Name: |
Eric He |
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Title: |
Chief Financial Officer |
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Date: August 18, 2014 |
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Exhibit 99.1
YY Reports Second Quarter 2014 Unaudited Financial Results
2Q14 Net Revenues Up 105.6% YOY to RMB841.0 Million
2Q14 Net Income Up139.0% YOY to RMB221.9 Million
2Q14 Non-GAAP Net Income Up 106.6% YOY to RMB258.4 Million
Guangzhou, China, August 6, 2014 YY Inc. (NASDAQ: YY) (YY or the Company), a revolutionary real-time interactive social platform, today announced its unaudited financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Highlights
· Net revenues increased by 105.6% to RMB841.0 million (US$135.6 million) from RMB409.0 million in the corresponding period of 2013, primarily driven by a 118.3% increase in revenues from internet value-added services, or IVAS revenues.
· Net income attributable to YY Inc. increased by 139.0% to RMB221.9 million (US$35.8 million) from RMB92.8 million in the corresponding period of 2013.
· Non-GAAP net income attributable to YY Inc.1 increased by 106.6% to RMB258.4 million (US$41.6 million) from RMB125.1 million in the corresponding period of 2013.
Mr. David Xueling Li, Chief Executive Officer of YY, stated, We are excited about our strong performance in the second quarter of 2014, as we continue to grow and strengthen our interactive social platform. Our online music and entertainment business once again exceeded our expectations, as revenues grew by 202.7% year-over-year and paying users grew by 77.6% year-over-year. In addition, this quarter witnessed the ascension of our online dating business, with revenues surging by 299.2% quarter-over-quarter. By utilizing our unique and powerful online communication capabilities, we continue to build new business lines that will broaden our product offering, elevate our brand and pave the way for further growth. Having attracted over 100 million average monthly active users through the second quarter of 2014, we are tirelessly working to build new and innovative products, providing a comprehensive services marketplace that caters to our users ever-changing demands.
Mr. Eric He, Chief Financial Officer of YY, commented, In the second quarter, we once again achieved results which eclipsed our expectations on top line growth, driven primarily by increased user engagement and spending. In addition to music and entertainment, online game broadcasting continues to grow at a tremendous pace, with revenues increasing by 243.2% year-over-year. Moreover, net income attributable to YY grew by 139.0% year-over-year due to the expanding scale and leverage of our business operations. We also saw our non-GAAP operating margins improve slightly year-over-year, which we believe will remain stable going forward. Seeking to capitalize on the economies of scale inherent in both our unique business model and technology platform, we will continue to develop and introduce new services for our users.
Second Quarter 2014 Financial Results
NET REVENUES
Net revenues increased by 105.6% to RMB841.0 million (US$135.6 million) in the second quarter of 2014 from RMB409.0 million in the corresponding period of 2013, primarily driven by an increase in IVAS revenues.
1 Non-GAAP net income attributable to YY Inc. is a non-GAAP financial measure, which is defined as net income attributable to YY Inc. excluding share-based compensation expenses.
IVAS revenues, which consisted of revenues from online music and entertainment, online games and other sources including the Companys membership program, live game broadcasting and online dating, increased by 118.3% to RMB800.7 million (US$129.1 million) in the second quarter of 2014 from RMB366.7 million in the corresponding period of 2013. The overall increase primarily reflected increases in the number of paying users and average revenue per user (ARPU).
Revenues from online music and entertainment increased by 202.7% to RMB516.4 million (US$83.2 million) in the second quarter of 2014 from RMB170.6 million in the corresponding period of 2013. This increase primarily reflected a 77.6% year-over-year increase in the number of paying users to 1,128,000 and an increase in ARPU of 70.3% to RMB458 in the second quarter of 2014.
Revenues from online games increased by 9.5% to RMB166.9 million (US$26.9 million) in the second quarter of 2014 from RMB152.4 million in the corresponding period of 2013. This increase primarily reflected a year-over-year increase in ARPU of 10.1% to RMB381 from 438,000 paying users. The number of online games operated by the Company increased to 150 as of June 30, 2014 from 96 as of June 30, 2013.
Other IVAS revenues, which primarily consisted of the membership subscription fees, live game broadcasting and online dating, increased by 168.6% to RMB117.4 million (US$18.9 million) in the second quarter of 2014 from RMB43.7 million in the corresponding period of 2013. Revenues from the membership subscription fees increased by 53.8% to RMB48.6 million (US$7.8 million) in the second quarter of 2014 from RMB31.6 million in the corresponding period of 2013. This increase primarily reflected a 43.2% increase in the number of members to 921,000 as of June 30, 2014 from 643,000 as of June 30, 2013. Revenues from live game broadcasting increased by 243.2% to RMB31.1 million (US$5.0 million) in the second quarter of 2014 from RMB9.1 million in the corresponding period of 2013. Revenues from online dating increased by 299.2% to RMB29.2 million (US$4.7 million) in the second quarter of 2014 from RMB7.3 million in the first quarter of 2014.
Online advertising revenues decreased by 4.6% to RMB40.4 million (US$6.5 million) in the second quarter of 2014 from RMB42.3 million in the corresponding period of 2013.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 122.5% to RMB424.8 million (US$68.5 million) in the second quarter of 2014 from RMB190.9 million in the corresponding period of 2013. This increase was primarily attributable to an increase in revenue-sharing fees and content costs to RMB256.0 million (US$41.3 million) in the second quarter of 2014 from RMB89.0 million in the corresponding period of 2013. This increase in revenue-sharing fees and content costs paid to performers, channel owners and content providers was primarily due to higher levels of user engagement and spending. In addition, bandwidth costs increased to RMB77.3 million (US$12.5 million) in the second quarter of 2014 from RMB45.1 million in the corresponding period of 2013.
Gross profit increased by 90.9% to RMB416.3 million (US$67.1 million) in the second quarter of 2014 from RMB218.1 million in the corresponding period of 2013. Gross margin was 49.5% in the second quarter of 2014 compared with 53.3% in the corresponding period of 2013. The decrease in gross margin was mainly attributable to the fact that a larger portion of revenues came from online music and entertainment, which led to higher corresponding revenue-sharing fees and content costs.
OPERATING INCOME
Operating expenses for the second quarter of 2014 increased by 30.7% to RMB179.5 million (US$28.9 million) from RMB137.4 million in the corresponding period of 2013. This increase was primarily attributable to an increase in research and development expenses and sales and marketing expenses which were associated with the general growth of the Companys overall business.
Operating income in the second quarter of 2014 increased by 189.0% to RMB238.6 million (US$38.5 million) from RMB82.6 million in the corresponding period of 2013. Operating margin increased to 28.4% in the second quarter of 2014 from 20.2% in the corresponding period of 2013. The increase in operating margin was primarily due to increased operating leverage associated with the Companys expansion.
Non-GAAP operating income2 increased by 139.7% to RMB275.1 million (US$44.3 million) in the second quarter of 2014 from RMB114.8 million in the corresponding period of 2013. Non-GAAP operating margin3 increased to 32.7% in the second quarter of 2014 from 28.1% in the corresponding period of 2013.
NET INCOME
Net income attributable to YY Inc. increased by 139.0% to RMB221.9 million (US$35.8 million) in the second quarter of 2014 from RMB92.8 million in the corresponding period of 2013. Net margin in the second quarter of 2014 increased to 26.4% from 22.7% in the corresponding period of 2013. Non-GAAP net income attributable to YY Inc.4 increased by 106.6% to RMB258.4 million (US$41.6 million) from RMB125.1 million in the corresponding period of 2013. Non-GAAP net margin5 increased slightly to 30.7% in the second quarter of 2014 from 30.6% in the corresponding period of 2013.
NET INCOME PER ADS
Diluted net income per ADS6 in the second quarter of 2014 increased by 134.8% to RMB3.71 (US$0.60), from RMB1.58 in the corresponding period of 2013.
Non-GAAP diluted net income per ADS7 in the second quarter of 2014 increased by 102.8% to RMB4.32 (US$0.70) from RMB2.13 in the corresponding period of 2013.
BALANCE SHEET AND CASH FLOWS
As of June 30, 2014, the Company had cash and cash equivalents of RMB0.9 billion (US$148.4 million) and short term deposits and restricted short-term deposits of RMB4.1 billion (US$658.5 million). For the second quarter of 2014, net cash from operating activities was RMB361.7 million (US$58.3 million).
SHARES OUTSTANDING
As of June 30, 2014, the Company had a total of 1.1 billion common shares outstanding, or the equivalent of 55.9 million ADSs outstanding.
2 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses.
3 Non-GAAP operating margin is a non-GAAP financial measure, which is defined as non-GAAP operating income as a percentage of net revenues.
4 Non-GAAP net income attributable to YY Inc. is a non-GAAP financial measure, which is defined as net income attributable to YY Inc. excluding share-based compensation expenses.
5 Non-GAAP net margin is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to YY Inc. as a percentage of net revenues.
6 ADS is American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income (loss) per ADS is net income (loss) attributable to common shareholders divided by weighted average number of diluted ADS.
7 Non-GAAP diluted net income (loss) per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) attributable to common shareholders divided by weighted average number of diluted ADS.
Business Outlook
For the third quarter of 2014, the Company expects its net revenues to be between RMB925 million and RMB935 million, representing a year-over-year growth of approximately 90% to 92%. These forecasts reflect the Companys current and preliminary view on the market and operational conditions, which are subject to change.
Conference Call Information
The Company will hold a conference call on Wednesday, August 6, 2014 at 9:00 pm Eastern Time or August 7, 2014 at 9:00 am Beijing Time to discuss the financial results. Participants may access the call by dialing the following numbers:
United States: |
+1-845-675-0438 |
International Toll Free: |
+1-855-500-8701 |
China Domestic: |
400-1200654 |
Hong Kong: |
+852-3051-2745 |
Conference ID: |
#78522071 |
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The replay will be accessible through August 14, 2014 by dialing the following numbers: | |
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United States Toll Free: |
+1-855-452-5696 |
International: |
+61-2-9003-4211 |
Conference ID: |
#78522071 |
A live and archived webcast of the conference call will also be available at the Companys investor relations website at http://investors.yy.com/.
Exchange Rate
This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.2036 to US$1.00, the noon buying rate in effect on June 30, 2014 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.
About YY Inc.
YY Inc. (YY or the Company) is a revolutionary real-time interactive social platform that engages users in real-time online group activities through voice, text and video. Launched in July 2008, YY Client, the Companys core product, empowers users to create and organize groups of varying sizes to discover and participate in a wide range of online activities, including online games, karaoke, music concerts, education, live shows and conference calls.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as YYs strategic and operational plans, contain forward-looking statements. YY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (SEC), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about YYs beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: YYs goals and strategies; YYs future business development, results of operations and financial condition; the expected growth of the online communication social platform market in China; the expectation regarding the rate at which to gain registered user accounts, active users, especially paying users; YYs ability to monetize the user base; YYs ability to continue attracting advertisers and offering popular online games; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in YYs filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and YY does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), except that the consolidated statement of changes in shareholders equity (deficits), consolidated statements of cash flows, and the detailed notes have not been presented. YY uses non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to YY Inc., non-GAAP net margin, non-GAAP net income(loss)attributable to common shareholders, and basic and diluted non-GAAP net income(loss) per ADS, which are non-GAAP financial measures. Non-GAAP operating income is operating income excluding share-based compensation expenses. Non-GAAP operating margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income (loss) attributable to YY Inc. is net income (loss) attributable to YY Inc. excluding share-based compensation expenses. Non-GAAP net margin is non-GAAP net income attributable to YY Inc. as a percentage of net revenues. Non-GAAP net income (loss) attributable to common shareholders is net income (loss) attributable to common shareholders excluding share-based compensation expenses. Basic and diluted non-GAAP net income (loss) per ADS is non-GAAP net income (loss) attributable to common shareholders divided by weighted average number of basic and diluted ADS. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the effect of non-cash share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Companys net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S.GAAP. For more information on these non-GAAP financial measures, please see the table captioned YY Inc. Reconciliations of GAAP and Non-GAAP Results at the end of this release.
Investor Relations Contact
YY Inc.
Yuffie Fu
Tel: (+86) 2029162000
YY INC.
UNAUDITED CONDENSEDCONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)
|
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December 31, |
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June 30, |
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June 30, |
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|
|
RMB |
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RMB |
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US$ |
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Assets |
|
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|
|
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|
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Current assets |
|
|
|
|
|
|
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Cash and cash equivalents |
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729,598 |
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920,426 |
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148,370 |
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Short-term deposits |
|
1,432,863 |
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4,030,064 |
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649,633 |
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Restricted short-term deposits |
|
|
|
55,000 |
|
8,866 |
|
Accounts receivable, net |
|
100,101 |
|
129,076 |
|
20,807 |
|
Amount due from a related party |
|
73 |
|
73 |
|
12 |
|
Prepayments and other current assets |
|
67,533 |
|
89,694 |
|
14,458 |
|
Deferred tax assets |
|
66,921 |
|
80,024 |
|
12,900 |
|
|
|
|
|
|
|
|
|
Total current assets |
|
2,397,089 |
|
5,304,357 |
|
855,046 |
|
|
|
|
|
|
|
|
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Non-current assets |
|
|
|
|
|
|
|
Deferred tax assets |
|
625 |
|
735 |
|
118 |
|
Investments |
|
62,029 |
|
100,828 |
|
16,253 |
|
Property and equipment, net |
|
102,636 |
|
149,574 |
|
24,111 |
|
Intangible assets, net |
|
29,127 |
|
30,926 |
|
4,985 |
|
Goodwill |
|
1,577 |
|
1,585 |
|
255 |
|
Other non-current assets |
|
4,864 |
|
56,632 |
|
9,129 |
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
200,858 |
|
340,280 |
|
54,851 |
|
|
|
|
|
|
|
|
|
Total assets |
|
2,597,947 |
|
5,644,637 |
|
909,897 |
|
|
|
|
|
|
|
|
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Liabilities and shareholders equity |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Accounts payable |
|
56,391 |
|
74,813 |
|
12,060 |
|
Deferred revenue |
|
293,866 |
|
346,963 |
|
55,929 |
|
Advances from customers |
|
19,549 |
|
26,089 |
|
4,205 |
|
Income taxes payable |
|
78,107 |
|
67,100 |
|
10,816 |
|
Accrued liabilities and other current liabilities |
|
250,760 |
|
286,743 |
|
46,222 |
|
Amounts due to related parties |
|
2,640 |
|
5,979 |
|
964 |
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
701,313 |
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807,687 |
|
130,196 |
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|
|
|
|
|
|
|
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Non-current liabilities |
|
|
|
|
|
|
|
Convertible Bonds |
|
|
|
2,461,538 |
|
396,792 |
|
Deferred revenue |
|
9,425 |
|
12,700 |
|
2,047 |
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|
|
|
|
|
|
|
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Total liabilities |
|
710,738 |
|
3,281,925 |
|
529,035 |
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YY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
|
|
December 31, |
|
June 30, |
|
June 30, |
|
|
|
RMB |
|
RMB |
|
US$ |
|
Shareholders equity |
|
|
|
|
|
|
|
Class A common shares (US$0.00001 par value; 10,000,000,000 shares authorized, 622,658,738 shares issued and outstanding as of December 31, 2013 and 690,552,628shares issued and outstanding as of June 30, 2014, respectively) |
|
38 |
|
42 |
|
7 |
|
Class B common shares (US$0.00001 par value; 1,000,000,000shares authorized, 485,831,386 shares issued and outstanding as of December 31, 2013 and 427,352,696 shares issued and outstanding as of June 30, 2014, respectively) |
|
34 |
|
30 |
|
5 |
|
Additional paid-in capital |
|
2,765,614 |
|
2,826,195 |
|
455,573 |
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Statutory reserves |
|
40,657 |
|
40,657 |
|
6,554 |
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Accumulated deficits |
|
(874,697 |
) |
(469,259 |
) |
(75,643 |
) |
Accumulated other comprehensive losses |
|
(44,437 |
) |
(34,953 |
) |
(5,634 |
) |
|
|
|
|
|
|
|
|
Total shareholders equity |
|
1,887,209 |
|
2,362,712 |
|
380,862 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
2,597,947 |
|
5,644,637 |
|
909,897 |
|
YY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(All amounts in thousands, except share, ADS and per ADS data)
|
|
Three Months Ended |
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Six Months Ended |
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|
|
June |
|
March |
|
June |
|
June |
|
June |
|
June |
|
June |
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet value-added service |
|
366,735 |
|
642,108 |
|
800,663 |
|
129,064 |
|
649,515 |
|
1,442,771 |
|
232,570 |
|
Online music and entertainment |
|
170,588 |
|
383,114 |
|
516,376 |
|
83,238 |
|
287,389 |
|
899,490 |
|
144,995 |
|
Online games |
|
152,445 |
|
180,320 |
|
166,900 |
|
26,904 |
|
284,755 |
|
347,220 |
|
55,971 |
|
Others |
|
43,702 |
|
78,674 |
|
117,387 |
|
18,922 |
|
77,371 |
|
196,061 |
|
31,604 |
|
Online advertising |
|
42,309 |
|
24,219 |
|
40,375 |
|
6,508 |
|
74,490 |
|
64,594 |
|
10,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue |
|
409,044 |
|
666,327 |
|
841,038 |
|
135,572 |
|
724,005 |
|
1,507,365 |
|
242,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues(1) |
|
(190,942 |
) |
(316,984 |
) |
(424,753 |
) |
(68,469 |
) |
(336,635 |
) |
(741,737 |
) |
(119,566 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
218,102 |
|
349,343 |
|
416,285 |
|
67,103 |
|
387,370 |
|
765,628 |
|
123,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
(70,599 |
) |
(81,710 |
) |
(107,454 |
) |
(17,321 |
) |
(124,718 |
) |
(189,164 |
) |
(30,493 |
) |
Sales and marketing expenses |
|
(7,726 |
) |
(6,564 |
) |
(13,634 |
) |
(2,198 |
) |
(13,242 |
) |
(20,198 |
) |
(3,256 |
) |
General and administrative expenses |
|
(59,043 |
) |
(56,951 |
) |
(58,405 |
) |
(9,415 |
) |
(104,694 |
) |
(115,356 |
) |
(18,595 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
(137,368 |
) |
(145,225 |
) |
(179,493 |
) |
(28,934 |
) |
(242,654 |
) |
(324,718 |
) |
(52,344 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
1,835 |
|
883 |
|
1,836 |
|
296 |
|
2,341 |
|
2,719 |
|
438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
82,569 |
|
205,001 |
|
238,628 |
|
38,465 |
|
147,057 |
|
443,629 |
|
71,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange gains (losses), net |
|
13,833 |
|
(8,683 |
) |
(6,001 |
) |
(967 |
) |
16,249 |
|
(14,684 |
) |
(2,367 |
) |
Interest expense |
|
|
|
(1,379 |
) |
(18,003 |
) |
(2,902 |
) |
|
|
(19,382 |
) |
(3,124 |
) |
Interest income |
|
13,609 |
|
23,124 |
|
43,643 |
|
7,035 |
|
24,139 |
|
66,767 |
|
10,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expenses |
|
110,011 |
|
218,063 |
|
258,267 |
|
41,631 |
|
187,445 |
|
476,330 |
|
76,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expenses |
|
(17,416 |
) |
(33,701 |
) |
(37,356 |
) |
(6,022 |
) |
(31,402 |
) |
(71,057 |
) |
(11,454 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before share of income (loss)in equity method investments, net of income taxes |
|
92,595 |
|
184,362 |
|
220,911 |
|
35,609 |
|
156,043 |
|
405,273 |
|
65,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of income (loss)in equity method investments net of income taxes |
|
225 |
|
(795 |
) |
960 |
|
155 |
|
704 |
|
165 |
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to YY Inc. |
|
92,820 |
|
183,567 |
|
221,871 |
|
35,764 |
|
156,747 |
|
405,438 |
|
65,355 |
|
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||||
|
|
June |
|
March |
|
June |
|
June |
|
June |
|
June |
|
June |
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
92,820 |
|
183,567 |
|
221,871 |
|
35,764 |
|
156,747 |
|
405,438 |
|
65,355 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments, net of nil tax |
|
(14,568 |
) |
9,483 |
|
1 |
|
|
|
(17,139 |
) |
9,484 |
|
1,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to YY Inc. |
|
78,252 |
|
193,050 |
|
221,872 |
|
35,764 |
|
139,608 |
|
414,922 |
|
66,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic |
|
1.66 |
|
3.21 |
|
3.87 |
|
0.62 |
|
2.81 |
|
7.08 |
|
1.14 |
|
diluted |
|
1.58 |
|
3.06 |
|
3.71 |
|
0.60 |
|
2.69 |
|
6.77 |
|
1.09 |
|
Weighted average number of ADS used in calculating net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic |
|
55,859,862 |
|
57,157,398 |
|
57,387,988 |
|
57,387,988 |
|
55,851,298 |
|
57,270,119 |
|
57,270,119 |
|
diluted |
|
58,578,043 |
|
60,442,973 |
|
59,854,610 |
|
59,854,610 |
|
58,166,873 |
|
59,858,441 |
|
59,858,441 |
|
(1) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||||
|
|
June |
|
March |
|
June |
|
June |
|
June |
|
June |
|
June |
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
2,441 |
|
2,408 |
|
4,691 |
|
756 |
|
3,427 |
|
7,099 |
|
1,144 |
|
Research and development expenses |
|
10,039 |
|
8,879 |
|
15,339 |
|
2,473 |
|
15,357 |
|
24,218 |
|
3,904 |
|
Sales and marketing expenses |
|
333 |
|
337 |
|
656 |
|
106 |
|
441 |
|
993 |
|
160 |
|
General and administrative expenses |
|
19,417 |
|
12,414 |
|
15,803 |
|
2,547 |
|
31,137 |
|
28,217 |
|
4,548 |
|
YY INC.
Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands, except share, ADS and per ADS data)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||||
|
|
June |
|
March |
|
June |
|
June |
|
June |
|
June |
|
June |
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
82,569 |
|
205,001 |
|
238,628 |
|
38,465 |
|
147,057 |
|
443,629 |
|
71,510 |
|
Share-based compensation expenses |
|
32,230 |
|
24,038 |
|
36,489 |
|
5,882 |
|
50,362 |
|
60,527 |
|
9,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
114,799 |
|
229,039 |
|
275,117 |
|
44,347 |
|
197,419 |
|
504,156 |
|
81,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to YY Inc. |
|
92,820 |
|
183,567 |
|
221,871 |
|
35,764 |
|
156,747 |
|
405,438 |
|
65,355 |
|
Share-based compensation expenses |
|
32,230 |
|
24,038 |
|
36,489 |
|
5,882 |
|
50,362 |
|
60,527 |
|
9,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to YY Inc. |
|
125,050 |
|
207,605 |
|
258,360 |
|
41,646 |
|
207,109 |
|
465,965 |
|
75,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2.24 |
|
3.63 |
|
4.50 |
|
0.73 |
|
3.71 |
|
8.14 |
|
1.31 |
|
Diluted |
|
2.13 |
|
3.46 |
|
4.32 |
|
0.70 |
|
3.56 |
|
7.78 |
|
1.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP weighted average numbers of ADS used in calculating net income per ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
55,859,862 |
|
57,157,398 |
|
57,387,988 |
|
57,387,988 |
|
55,851,298 |
|
57,270,119 |
|
57,270,119 |
|
Diluted |
|
58,578,043 |
|
60,442,973 |
|
59,854,610 |
|
59,854,610 |
|
58,166,873 |
|
59,858,441 |
|
59,858,441 |
|