Taomee Holdings (TAOM) research, news, and more from GeoInvesting

Company description

Wed, 25 May 2011 04:00:00 GMT

We are one of the leading children’s entertainment and media companies in China. Our mission is to create exceptional entertainment experiences for children that are fun, safe and trusted by parents. We attribute our market leading position to our content development capabilities that leverage our innovative culture, experience in the children’s entertainment market in China, and knowledge of virtual worlds to create enduring and iconic characters, images and story lines that attract a loyal following among children of the targeted age groups. In 2010, we ranked as the largest online entertainment community for children in China, measured by market share and active accounts, according to iResearch, an independent research company, in a January 2011 report commissioned by us, or the iResearch Report. Our success online has translated into growing demand for our content offline in print media, merchandising, television, film and live performances.

Comments & Business Outlook

Thu, 14 Mar 2013 04:00:00 GMT

Fourth Quarter of 2012 Results

Total net revenues were US$7.5 million in the fourth quarter of 2012, as compared with US$8.6 million in the fourth quarter of 2011.
Net income attributable to holders of ordinary shares increased 39.2% to US$2.3 million in the fourth quarter of 2012, as compared with US$1.6 million in the fourth quarter of 2011.
Basic and diluted earnings per ADS[1] increased to US$0.06 and US$0.06, respectively, in the fourth quarter of 2012, as compared with US$0.04 and US$0.04, respectively, in the fourth quarter of 2011.
Non-GAAP net income attributable to holders of ordinary shares increased 21.0% to US$2.7 million in the fourth quarter of 2012, as compared with US$2.3 million in the fourth quarter of 2011.
Non-GAAP basic and diluted earnings per ADS increased to US$0.07 and US$0.07, respectively, in the fourth quarter of 2012, as compared with US$0.06 and US$0.06, respectively, in the fourth quarter of 2011.

Mr. Benson Wang, co-founder and chief executive officer of Taomee, stated, "Last year marked a year of transformation and growth for Taomee in terms of our user growth and content expansion. We accelerated the expansion of our cross-media platform through the launch of multiple award-winning films and TV animations, new online virtual worlds, children's interactive toys, mobile applications, as well as several licensing agreements with some of the world's leading companies, like P&G and GAP. More specifically, we experienced a strong increase in year-over-year active online users and have successfully extended those relationships to other online services including, social networking services, video and mobile applications. Our core franchise, Seer, was ranked the number two TV animation series last year by viewership throughout China, according to China Animation Association. On the mobile front, our accumulated mobile downloads on Apple iOS and Android platforms increased to over 15.4 million by the end of 2012. We are pleased with our 2012 achievements as evidenced by this strengthened presence across online, offline and mobile fronts.

"In 2013, we remain focused on further leveraging our core competency in developing popular franchises for family entertainment by further expanding our online and offline business, as we continue to build our diversified cross-media entertainment platform inGreater China," concluded Mr. Wang.

Outlook for First Quarter of 2013

Net revenues for the first quarter of 2013 are expected to be in the range of US$8.0 million to US$8.3 million. This forecast reflects the Company's current and preliminary view, which is subject to change.

Comments & Business Outlook

Tue, 20 Nov 2012 05:00:00 GMT

Third Quarter of 2012 Financial Highlights

Total net revenues were US$11.8 million, an increase of 13.0% from US$10.5 million in the second quarter of 2012 and a decrease of 6.7% from US$12.7 million in the third quarter of 2011.
Gross margin was 70.2% compared to 77.7% in the second quarter of 2012 and 81.2% in the third quarter of 2011.
Net income attributable to the holders of ordinary shares was US$1.8 million, compared with US$3.2 million in the second quarter of 2012 and US$4.4 million in the third quarter of 2011.
Basic and diluted earnings per ADS(1) were US$0.05 and US$0.05, respectively, compared with US$0.09 and US$0.08, respectively, in the second quarter of 2012 and US$0.12 and US$0.12respectively, in the third quarter of 2011.
Non-GAAP net income attributable to holders of ordinary shares was US$2.4 million, compared with US$3.8 million in the second quarter of 2012 and US$5.0 million in the third quarter of 2011.
Non-GAAP basic and diluted earnings per ADS were US$0.07 and US$0.06, respectively, compared with US$0.10 and US$0.10, respectively, in the second quarter of 2012 and US$0.14 andUS$0.13, respectively, in the third quarter of 2011.

Mr. Benson Wang, co-founder and chief executive officer of Taomee, stated, "We are encouraged by our overall performance in the third quarter, which exceeded our expectations and reflected stable operational results in our core business. Our strategy to establish and grow our cross-media, core character franchise base is continuing to gain traction both online and offline. We grew our online web games active user base by 32% quarter-over-quarter, and in mobile, we recently surpassed 12 million total downloads. For our offline business, we successfully released two films based on our core franchises, Mole's World and Seer, which were broadcasted on over 2,000 screens throughout Mainland China and Taiwan, and achieved over 50 million RMB in combined box office receipts."

"Our strategy of increasing active user growth and engagement is proving effective as evidenced by the 32% increase in sequential user growth and stable ARPU during the quarter. We believe our offline expansion provides us with a unique opportunity to monetize our online virtual worlds, representing a significant long-term growth opportunity. Going forward, we remain committed to enhancing our high quality and unique content offering across mobile, online and offline, in attempt to further solidify our brand equity, diversify our revenue streams, and augment our competitive position," concluded Mr. Wang.

Outlook for Fourth Quarter of 2012

The Company expects revenues for the fourth quarter to be between US$7.0 7.5 million. The sequential decline reflects seasonality associated with the Chinese school calendar as well as the lack of any films being released in the fourth quarter. These forecasts also reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

Notable Share Transactions

Fri, 28 Sep 2012 04:00:00 GMT

SHANGHAI, September 28, 2012 /PRNewswire/ -- Taomee Holdings Limited (NYSE: TAOM) ("Taomee" or the "Company"), one of the leading children's entertainment and media companies in China, today announced that its Board of Directors approved the extension of the Company's previous share repurchase plan dated November 22, 2011 for another 12 months from November 23, 2012 to November 23, 2013. Upon such extension, Taomee is authorized, but not obligated, to continue to repurchase, through open market purchase or privately negotiated transactions, up to the remaining balance of the US$10 million worth of outstanding American Depositary Shares ("ADSs") representing the ordinary shares of Taomee over the next 12 months, depending on market conditions, share price and other factors, subject to relevant rules and regulations under the U.S. securities laws.

The share repurchase plan will be funded by the Company's free cash flow as well as existing working capital. As of June 30, 2012, the Company had cash and cash equivalents of approximately US$122.0 million.

Comments & Business Outlook

Thu, 16 Aug 2012 04:00:00 GMT

Second Quarter 2012 Financial Highlights

Total net revenues were US$10.5 million, a slight increase of 0.4% from US$10.4 million in the first quarter 2012 and a decrease of 10.9% from US$11.8 million in the second quarter 2011.
Gross margin was 77.7% compared to 79.6% in the first quarter 2012 and 85.1% in the second quarter 2011.
Net income attributable to the holders of ordinary shares was US$3.2 million, compared with US$1.6 million in the first quarter of 2012 and US$4.3 million in the second quarter of 2011.
Basic and diluted earnings per ADS[1] were US$0.09 and US$0.08, respectively, compared with US$0.04and US$0.04, respectively, in the first quarter 2012 and US$0.14 and US$0.13 respectively, in the second quarter 2011.
Non-GAAP net income attributable to holders of ordinary shares was US$3.8 million, compared with US$2.2 million in the first quarter 2012 and US$4.7 million in the second quarter of 2011.
Non-GAAP basic and diluted earnings per ADS were US$0.10 and US$0.10, respectively, compared with US$0.06 and US$0.06, respectively, in the first quarter 2012 and US$0.15 and US$0.14, respectively, in the second quarter 2011.

"For the second quarter of 2012, we delivered revenue results that exceeded our expectations, and achieved a new high of 43.7 million active users." said Mr. Benson Wang, co-founder and chief executive officer of Taomee. "Our strategy to drive user growth by decelerating monetization activities and by introducing new online products is contributing to our overall brand influence as well as offline growth. In fact, offline revenues increased 78.2% year-on-year, due to strong performance of our merchandise licensing, publishing and film business."

Mr. Wang continued, "We continue to invest in our brands and business lines to foster long term sustainable growth. In 2012, we have committed significant resources towards mobile, online video services and animation and we are encouraged by the early results. As of today, total downloads of our mobile application have exceeded 10 million and we are excited about the upcoming pipeline. Meanwhile, we believe we successfully expanded our brand influence though TV animations, which have been broadcasted on over 130 channels throughout Mainland China and Taiwan. Our Seer TV animation has been viewed over 100 million times on our online video site v.61.com. Looking ahead, we are extremely excited by the opportunities that lie ahead as we continue to build Taomee into a leading entertainment company in China."

Outlook for Third Quarter 2012

For the third quarter of 2012, Taomee estimates total net revenues to increase 10% quarter over quarter.

Comments & Business Outlook

Wed, 30 May 2012 04:00:00 GMT

First Quarter 2012 Financial Highlights

Total net revenues were US$10.4 million, an increase of 21.9% from US$8.6 million in the fourth quarter 2011 and a decrease of 15.9% from US$12.4 million in the first quarter 2011.
Gross margin was 79.6% compared to 81.3% in the fourth quarter 2011 and 84.2% in the first quarter 2011.
Net income attributable to the holders of ordinary shares was US$ 1.6 million, compared with US$1.6 million in the fourth quarter of 2011 and US$9.0 million in the first quarter of 2011.
Basic and diluted earnings per ADS(1) were US$0.04 and US$0.04, respectively, compared with US$0.04and US$0.04, respectively, in the fourth quarter 2011 and US$0.31 and US$0.29 respectively, in the first quarter 2011.
Non-GAAP net income attributable to holders of ordinary shares was US$2.2 million, compared with US$2.3 million in the fourth quarter 2011 and US $5.6 million in the first quarter of 2011.
Non-GAAP basic and diluted earnings per ADS were US$0.06 and US$0.06, respectively, compared withUS$0.06 and US$0.06, respectively, in the fourth quarter 2011 and US$0.20 and US$0.18, respectively, in the first quarter 2011.

"We started 2012 with a quarter of solid financial and operational results," said Mr. Benson Wang, co-founder and CEO of Taomee. "In the first quarter of 2012, our virtual communities had more than 42 million active accounts, a new quarterly high for the Company and reflected year-over-year increases across all of our branded virtual communities. Our achievements resulted from our tactical investment in recent quarters to grow our user base and increase user engagement.

"This quarter, we have also expanded our content offerings across multiple media platforms, including the release of new mobile applications and games for the wireless platform, an increase in number of broadcasted TV animation series and channel partners, and the launch of an online video portal for children. We believe we have enhanced the influence of our brands and franchises, and we are excited about the long term prospects of our business.

Outlook for Second Quarter 2012

For the second quarter of 2012, Taomee estimates that total net revenues may decline by approximately 10% quarter over quarter due to seasonality.

Comments & Business Outlook

Wed, 21 Mar 2012 04:00:00 GMT

Fourth Quarter 2011 Financial Highlights

Total net revenues were US$8.6 million in the fourth quarter of 2011, a decrease of 32.5% from US$12.7 million in the third quarter of 2011 and 11.0% from US$9.6 million in the fourth quarter of 2010.
Gross margin increased to 81.3% in the fourth quarter of 2011 from 81.2% in the third quarter of 2011 and 80.8% in the fourth quarter of 2010.
Net income attributable to the holders of ordinary shares was US$ 1.6 million in the fourth quarter of 2011, compared with US $4.4 million in the third quarter of 2011 and US $5.6 million in the fourth quarter of 2010.
Basic and diluted earnings per ADS(1) were US$0.04 and US$0.04, respectively, in the fourth quarter of 2011, compared with US$0.12 and US$ 0.12, respectively, in the third quarter of 2011 and US$0.19 and US$0.18, respectively, in the fourth quarter of 2010.
Non-GAAP net income attributable to holders of ordinary shares was US$2.3 million in the fourth quarter of 2011, compared with US$5.0 million in the third quarter of 2011 and US$5.7 million in the fourth quarter of 2010.
Non-GAAP basic and diluted earnings per ADS were US$0.06 and US$0.06, respectively, in the fourth quarter of 2011, compared with US$0.14 and US$0.13, respectively, in the third quarter of 2011 and US$0.20 and US$0.18, respectively, in the fourth quarter of 2010.

"We increased our total active accounts year over year and exceeded our revenue guidance in the second half of 2011," said Mr. Benson Wang, Co-founder, director and chief executive officer of Taomee. "We were pleased with the user growth and user engagement levels in the fourth quarter and continue to add loyal customers across multiple media platforms. In particular, we received high ratings for our animation series, which have been broadcast across more than 100 television channels since June 2011.

"In 2012, we plan to accelerate investments in our brands and platform, and we are willing to sacrifice short term revenue growth and operating margin in exchange for long term sustainable revenue and profit growth. China's domestic industry for family entertainment is still in its early stages, and we believe there is tremendous revenue growth potential over the foreseeable future, and more importantly, attractive returns on capital over the long term."

Outlook for First Quarter of 2012

Net revenues for the first quarter of 2012 are expected to increase approximately 10% sequentially in comparison to the fourth quarter of 2011

Notable Share Transactions

Mon, 28 Nov 2011 05:00:00 GMT

SHANGHAI, November 28, 2011 /PRNewswire-Asia/ -- Taomee Holdings Limited (NYSE: TAOM) ("Taomee" or the "Company"), one of the leading children's entertainment and media companies in China, today announced that its Board of Directors approved a share repurchase plan on November 22, 2011, effective upon the approval. Under the plan, Taomee is authorized, but not obligated, to repurchase, through open market purchase or privately negotiated transactions, up to US$10 million worth of outstanding American Depositary Shares ("ADSs") representing the ordinary shares of Taomee over the next 12 months, depending on market conditions, share price and other factors, subject to relevant rules and regulations under the U.S. securities laws.

The share repurchase plan will be funded by the Company's free cash flow as well as existing working capital. As of September 30, 2011, the Company had cash and cash equivalents of approximately US$120.9 million.

As of November 28, the Company had 733,754,480 ordinary shares issued and outstanding.

Comments & Business Outlook

Mon, 28 Nov 2011 05:00:00 GMT

Third Quarter 2011 Financial Highlights

Total net revenues reached an historical high of US$12.7 million, an increase of 7.8% from US$11.8 million in the second quarter 2011 and 23.7% from US$10.3 million in the third quarter 2010, exceeding the Company's guidance.
Gross margin decreased to 81.2% from 85.1% in the second quarter 2011 and 84.9% in the third quarter 2010.
Net income attributable to the holders of ordinary shares was US$ 4.4 million, compared with US $4.3 million in the second quarter of 2011 and US $6.4 million in the third quarter of 2010.
Basic and diluted earnings per ADS were US$0.12 and US$0.12, respectively, compared with US$0.14 and US$ 0.13, respectively, in the second quarter 2011 and US$0.22 and US$0.21, respectively, in the third quarter 2010.
Non-GAAP net income attributable to holders of ordinary shares was US$5.0 million, compared with US$4.7 million in the second quarter 2011 and US$6.5 million in the third quarter of 2010.
Non-GAAP basic and diluted earnings per ADS were US$0.14 and US$0.13, respectively, compared with US$0.15 and US$0.14, respectively, in the second quarter 2011 and US$0.22 and US$0.22, respectively, in the third quarter 2010.

"During the third quarter of 2011, we are pleased to report that we delivered a new record level of revenue and reached an all-time high of 37.1 million active users," said Mr. Benson Wang, Co-founder, Director and Chief Executive Officer of Taomee. "We also successfully launched two film releases based on our core franchises, Seer and Mole's World. Both movies were ranked among the top 10 for domestically produced animated films."

"Our new high in active users was partly driven by our strategy to gain market share and increase user stickiness by temporarily decelerating monetization activities within our online games. The third quarter results give us tremendous confidence in our strategy and we plan to continue to prioritize market share expansion as we foster user growth, and user stickiness. The success of the films and triple digit growth in licensing also demonstrates our ability to monetize our brands across our platform, while reducing our dependence on online revenues. Meanwhile, we also recently strengthened our competitive position and intensified our share gain efforts in the fourth quarter with the launch of Mole's World on the iOS platform on October 28th. The entertainment application has been a top ranked download in China since its launch. Looking forward, we are extremely excited by the opportunities that lie ahead as we continue to build Taomee into one of the largest, most profitable children's entertainment companies in China."

Outlook for Fourth Quarter 2011

The Company expects revenues in the fourth quarter to decline due to seasonality of the school year and because the Company does not have any offline film releases. Net revenues for the 4Q are expected to exceed US$8.0 million.

Virtually all of Taomee's users attend elementary and middle school. Children are in school for most of the fourth quarter compared with only about one month in the third quarter because of the summer holiday. Although many students will still visit our virtual worlds during the fourth quarter, users are less likely to spend. Furthermore, Taomee intentionally reduced monetization activities in the third and fourth quarter to increase market share and stimulate user stickiness. Seasonal fluctuations will continue to be a part of Taomee's business, so management encourages investors to look at the business on a longer term, year-to-year basis.
In this quarter, Taomee released two fully-animated movies including "Seer: The Search for the Sacred Phoenix" and "Legend of the Moles-The Frozen Horror". Both movies were ranked among the top 10 for domestically-produced animated film. We do not expect to generate significant revenue from movie in the fourth quarter and we have no new movies scheduled for release until the summer of 2012.

Despite a seasonal decline in revenues, the Company is proving that it is becoming increasingly capable of monetizing its brands through licensing and film, and as such, it will require lower levels of online game monetization to produce attractive returns on its franchises.

Notable Share Transactions

Tue, 06 Sep 2011 04:00:00 GMT

SHANGHAI, September 6, 2011 /PRNewswire-Asia/ -- Taomee Holdings Limited (NYSE: TAOM) ("Taomee"), a leading children's entertainment and media company in China, announced that Mr. Jason Liqing Zeng, Chairman of the Board of Taomee, purchased 216,000 shares of the Company's common stock in open market transactions.

Comments & Business Outlook

Tue, 16 Aug 2011 04:00:00 GMT

Second Quarter 2011 Financial Highlights

Total net revenues were US$11.8 million, a 22.6% increase from US$9.6 million in the second quarter 2010 and a seasonal 5.1% decrease from US$12.4 million in the first quarter of 2011.
Gross margin rose to 85.1% from 84.2% in the first quarter 2011 and decreased from 85.3% in the second quarter 2010.
Non-GAAP net income attributable to holders of ordinary shares was US$4.7 million, compared with US$5.6 million in the first quarter 2011.
Non-GAAP basic and diluted earnings per ADS were US$0.15 and US$0.14, respectively, compared with US$0.20 and US$0.18, respectively, in the first quarter 2011 and US$0.20 and US$0.19, respectively, in the second quarter 2010.

"We are pleased to report our results for the first time as a publicly traded company," said Mr. Benson Wang, Co-founder, Director and Chief Executive Officer of Taomee. "Our second quarter results exceeded our expectations, and we remain focused on investing in new content offerings for the future. Following our successful listing on the New York Stock Exchange, some of our key objectives for 2011 are to expand our user base, launch new offerings- including our social networking site and mobile entertainment products, demonstrate success to partners through brand licensing, and increase the popularity of our franchises through film and TV. I am extremely pleased with the highly successful launches of our first two movies, 'Seer: The Search for the Sacred Phoenix' last month and 'Legend of the Moles-The Frozen Horror' just a few days ago. The sophisticated production and the tremendous audience reception of these movies demonstrate our potential to expand our franchises further. As we look forward, our commitment to create the very best in children's entertainment content and to deliver it across multiple platforms remains strong. We are optimistic about the third quarter as we actively execute our strategy to drive long-term growth and further build our entertainment franchise in China."

Outlook for Third Quarter 2011

For the third quarter of 2011, Taomee expects total net revenues to increase in the range of 3% to 5% quarter-over-quarter. Although we expect to have a positive cash flow and remain profitable, we also anticipate that net income will decline sequentially and year-over-year as we continue to invest in our business and brands by adding headcount, primarily in R&D and product development, as well as higher advertising expenses and increased animation production costs.

IPO Activity

Thu, 09 Jun 2011 04:00:00 GMT

SHANGHAI, June 9, 2011 /PRNewswire-Asia/ -- Taomee Holdings Limited ("Taomee" or "the "Company"), one of the leading children's entertainment and media companies in China, today announced that its initial public offering of 7,187,500 American depositary shares ("ADSs") was priced at $9.00 per ADS. Each ADS represents 20 ordinary shares of the Company. The underwriters have been granted an option to purchase up to 1,078,125 additional ADSs to cover over-allotments. The ADSs will begin trading on the New York Stock Exchange on June 9th, 2011, under the ticker symbol "TAOM".

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are acting as joint bookrunners. China International Capital Corporation Limited, Oppenheimer & Co., Inc, Pacific Crest Securities LLC and Stifel, Nicolaus & Company, Incorporated are acting as joint co-managers for the offering.

Taomee's registration statement relating to its initial public offering has been filed with, and declared effective by, the United States Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

IPO Activity

Wed, 25 May 2011 04:00:00 GMT

Taomee Holdings Limited plans for Initial Public Offering

Company Snapshot:

One of the leading children’s entertainment and media companies in China.

Industry Snapshot (Per Filing):

We intend to use the net proceeds we will receive from this offering as follows:
approximately US$10.0 million to further develop and expand our online business; approximately US$10.0 million to further develop and expand our offline business
the balance to fund our working capital and for general corporate purposes, including potential acquisitions, partnerships, alliances and licensing opportunities.

Use Of proceeds:

We intend to use approximately $9.0 million of our net proceeds from this offering for the installation of three production lines (production lines 2, 3 and 4) in the Evergreen Product facility that we are in the process of completing. We expect production line 2 to be installed and begin operating on a large scale by February 2011. We plan to begin installing production lines 3 and 4 in fiscal year 2011 and to utilize these production lines for production of Evergreen Products beginning in November 2011 and April 2012, respectively. We intend to use the remaining net proceeds from this offering for working capital and other general corporate purposes.

Underwriter:

Credit Suisse
Deutsche Bank Securities
Oppenheimer & Co.
Pacific Crest Securities
Stifel Nicolaus Weisel
CICC

Proposed offering price: $9.00 to $11.00

Post IPO Share Calculation: (Using a 20 to 1 Ordinary to ADS conversion ratio).

30,378,966: Pre IPO fully diluted share count used in EPS calculation.
7,187,500: Newly issued ADS shares
1,078,125: Underwriter over-allotments ADS shares

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 20 to 1: 38,644,591

Financial Snapshot: December Year End

Period from October 8, 2007 (inception date) to December 31, 2007			For Years Ended December 31,									For Three Months Ended March 31,
				2008			2009			2010			2010			2011
													(unaudited)			(unaudited)
	(US$ in thousands, except share and per share data)
Consolidated Combined Statement of Operations Data:
Net revenues:
Online business		—			125			6,877			33,683			6,116			11,776
Offline business		—			—			189			2,290			396			623

Total net revenues		—			125			7,066			35,973			6,512			12,399
Cost of services⁽¹⁾:
Online business		—			(115	)		(1,913	)		(5,166	)		(995	)		(1,668	)
Offline business		—			—			(90	)		(686	)		(47	)		(288	)

Gross profit		—			10			5,063			30,122			5,470			10,444

Operating expenses:
Product development expenses⁽¹⁾		(7	)		(314	)		(1,444	)		(4,649	)		(759	)		(2,092	)
Sales and marketing expenses⁽¹⁾		(14	)		(183	)		(893	)		(1,570	)		(275	)		(1,035	)
General and administrative expenses⁽¹⁾		(39	)		(407	)		(1,161	)		(5,729	)		(1,256	)		(1,649	)
Other operating income		—			—			—			278			—			174

Total operating expenses		(60	)		(904	)		(3,498	)		(11,670	)		(2,290	)		(4,602	)

Income (loss) from operations		(60	)		(894	)		1,565			18,452			3,180			5,842
Interest income, net		3			4			7			240			10			105
Other income (expenses), net		—			2			(10	)		(115	)		—			5

Income (loss) before income taxes and share of profit in equity investments		(57	)		(888	)		1,562			18,577			3,190			5,952

Income tax (expense)/benefit:
Current		—			—			(22	)		(7	)		—			(933	)
Deferred		—			—			(271	)		2,511			421			134

Total income tax (expense)/benefit		—			—			(293	)		2,504			421			(799	)

Net income (loss) before share of profit in equity investments		(57	)		(888	)		1,269			21,081			3,611			5,153
Share of profit in equity investments		—			—			49			494			17			3,977

Net income (loss)		(57	)		(888	)		1,318			21,574			3,628			9,130
Deemed dividend on Series A convertible redeemable preferred shares		—			—			(210	)		(469	)		(117	)		(120	)

Net income (loss) attributable to holders of ordinary shares		(57	)		(888	)		1,108			21,105			3,511			9,010

Earnings (loss) per share:
Basic		—		$	(0.0018	)	$	0.0020		$	0.0367		$	0.0061		$	0.0157
Diluted		—		$	(0.0018	)	$	0.0020		$	0.0360		$	0.0061		$	0.0146
Weighted average number of shares used in calculating earnings (loss) per share⁽²⁾:
Basic		500,000,000			500,000,000			467,123,300			450,000,000			450,000,000			450,000,000
Diluted		500,000,000			500,000,000			467,123,300			458,482,370			450,140,050			482,579,336
Pro forma earnings per share⁽³⁾:
Basic										$	0.0367					$	0.0157
Diluted										$	0.0362					$	0.0148
Weighted average number of shares used in calculating pro forma earnings per share:
Basic											575,000,000						575,000,000
Diluted											583,482,370						607,579,336
Cash dividends declared per share											0.0174

Pro Forma Valuation: using $11.00 price and new share count

Trailing EPS (ADS): $0.90
Trailing P/E: 12.22

Liquidity Requirements

Wed, 25 May 2011 04:00:00 GMT

We believe that our current levels of cash balances after dividend distribution and cash flows from operations will be sufficient to meet our anticipated cash needs to fund our operations for at least the next 12 months, assuming we receive no proceeds from this offering.