0001104659-16-090711.txt : 20160121 0001104659-16-090711.hdr.sgml : 20160121 20160121060904 ACCESSION NUMBER: 0001104659-16-090711 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20160131 FILED AS OF DATE: 20160121 DATE AS OF CHANGE: 20160121 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ku6 Media Co., Ltd CENTRAL INDEX KEY: 0001294435 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATION SERVICES, NEC [4899] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51116 FILM NUMBER: 161352392 BUSINESS ADDRESS: STREET 1: BUILDING 6, ZHENGTONGCHUANGYI CENTRE STREET 2: NO. 18 XIBAHE XILI, CHAOYANG DISTRICT CITY: BEIJING STATE: F4 ZIP: 100028 BUSINESS PHONE: 86-10-5758-6818 MAIL ADDRESS: STREET 1: BUILDING 6, ZHENGTONGCHUANGYI CENTRE STREET 2: NO. 18 XIBAHE XILI, CHAOYANG DISTRICT CITY: BEIJING STATE: F4 ZIP: 100028 FORMER COMPANY: FORMER CONFORMED NAME: Hurray! Holding Co., Ltd. DATE OF NAME CHANGE: 20040619 6-K 1 a16-2656_16k.htm 6-K

 

 

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: January 2016

 

Commission File Number: 000-51116

 

Ku6 Media Co., Ltd.

(Exact name of registrant as specified in its charter)

 

Building 6, Zhengtongchuangyi Centre
No. 18, XibaheXili, Chaoyang District,
Beijing 100028, People’s Republic of China

Fax number: +86 10 5758-6834

(Address of principal executive offices)

 

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       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

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  Yes o  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.

 

 

 



 

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.

 

 

Ku6 Media Co., Ltd.

 

 

 

 

 

By:

/s/ Jason Ma

 

Name:

Jason Ma

 

Title:

Acting Chief Financial Officer

 

 

 

 

Date:  January 21, 2016

 

 

2



 

EXHIBIT INDEX

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press release

 

3


EX-99.1 2 a16-2656_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

Ku6 Media Reports Unaudited Financial Results

For the Fourth Quarter and Full Year of Fiscal Year 2015

 

BEIJING, China, January 21, 2016 — Ku6 Media Co., Ltd. (“Ku6 Media” or the “Company,” NASDAQ: KUTV), a leading internet video company focused on User Generated Content (“UGC”) in China, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2015.

 

Fourth Quarter 2015 Highlights

 

·                      Total revenues were US$3.72 million (RMB23.79 million) in the fourth quarter of 2015, as compared to total revenues of US$2.45 million in the third quarter of 2015 and US$3.47 million in the fourth quarter of 2014.

 

·                      Net profit was US$0.08 million (RMB0.53 million) in the fourth quarter of 2015, as compared to a net loss of US$0.64 million in the third quarter of 2015 and US$0.04 million in the fourth quarter of 2014.

 

·                      Basic and diluted profit per ADS was US$0.00 (RMB0.01) in the fourth quarter of 2015, as compared to basic and diluted loss per ADS of US$0.01 in the third quarter of 2015 and US$0.00 in the fourth quarter of 2014.

 

·                      Cash and cash equivalents were US$7.70 million as of December 31, 2015.

 

·                      Net cash used in operating activities was US$0.22 million (RMB1.42 million) in the fourth quarter of 2015, as compared to net cash used in operating activities of US$0.32 million in the third quarter of 2015 and net cash provided by operating activities of US$1.60 million in the fourth quarter of 2014.

 

Fiscal year 2015 Highlights

 

·                      Total revenues were US$10.91 million (RMB68.61 million) in 2015, as compared to total revenues of US$8.58 million in 2014.

 

·                      Net loss was US$2.05 million (RMB12.77 million) in 2015, as compared to a net loss of US$10.73 million in 2014.

 

·                      Basic and diluted loss per ADS was US$0.04 (RMB0.27) in 2015, as compared to basic and diluted loss per ADS of US$0.23 in 2014.

 

·                      Net cash used in operating activities was US$1.46 million (RMB8.92 million) in 2015, as compared to net cash used in operating activities of US$5.21 million in 2014.

 


(1)         The reporting currency of the Company is the United States dollar (“U.S. dollar”), but solely for the convenience of the reader, the amounts of Renminbi (“RMB”) presented throughout the release were calculated at the rate of US$1.00=RMB6.4778, representing the noon buying rate as of December 31, 2015 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. This convenience translation is not intended to imply that the U.S. dollar amounts could have been, or could be, converted, realized or settled into RMB at that rate on December 31, 2015 or at any other rate.

 



 

Recent Business Developments

 

New strategy in virtual reality

 

In the fourth quarter of 2015, management included virtual reality (“VR”) as part of the Company’s development strategies. In this regard, the Company has established a VR community on its website and its video social communities will serve as the core platform for users to experience this state-of-the-art technology. The Company is targeting a goal of becoming a leading VR content provider in the internet video industry.

 

For development of its VR community, management has started to look for investment opportunities in VR-related companies globally and the Company is negotiating with VR entities world-wide for potential M&A transactions and business cooperation opportunities.

 

Management Comments

 

Mr. Feng Gao, Chief Executive Officer of Ku6 Media, commented, “The fourth quarter of 2015 has marked a milestone in Ku6’s history, as we achieved our first quarterly break-even and determined Ku6’s new strategy for the years ahead, which is to become a leading virtual reality internet content provider. We have established a VR community during our fourth quarter of 2015, and started to negotiate with international VR entities for further cooperation. In addition, we also see great potential to use VR technology in advertising and operating video social communication businesses with an eye on improved user experience. I believe Ku6 will have an exciting year in 2016.”

 

Fourth quarter 2015 Financial Results

 

Total revenues were US$3.72 million in the fourth quarter of 2015, representing an increase of 51.8% from US$2.45 million in the third quarter of 2015 and an increase of 7.2% from US$3.47 million in the fourth quarter of 2014. The Company reported higher revenues due to increased volume from its advertising partners compared to the third quarter of 2015.

 

Cost of revenues was US$1.78 million in the fourth quarter of 2015, representing a decrease of 13.2% from US$2.05 million in the third quarter of 2015 and a decrease of 25.6% from US$2.39 million in the fourth quarter of 2014.

 

The decrease of US$0.61 million, or 25.6% in cost of revenues, as compared to the fourth quarter of 2014, was primarily due to (a) a decrease in bandwidth costs by US$0.26 million as the Company optimized bandwidth efficiency in 2015; (b) certain fixed assets were fully depreciated and there were no related depreciation expenses recorded in the fourth quarter of 2015, while depreciation expenses of these assets were US$0.18 million in the fourth quarter of 2014. These factors also contributed to the decrease from the third quarter of 2015.

 

Gross profit was US$1.94 million in the fourth quarter of 2015, as compared to US$0.40 million in the third quarter of 2015 and US$1.08 million in the fourth quarter of 2014.

 

Operating expenses were US$1.84 million in the fourth quarter of 2015, as compared to US$1.01 million in the third quarter of 2015, representing an increase of 82.2%. Operating expenses reflected an increase of 53.3% from US$1.20 million in the fourth quarter of 2014.

 



 

The increase of US$0.64 million or 53.3% in operating expenses, as compared to the fourth quarter of 2014, was mainly attributed to an increase of marketing expenses by US$0.63 million as the Company added resources to motivate the advertising revenues in the fourth quarter of 2015. This also contributed to the increase in operating expenses from the third quarter of 2015.

 

Operating profit was US$0.11 million in the fourth quarter of 2015, as compared to operating loss of US$0.61 million in the third quarter of 2015 and operating loss of US$0.12 million in the fourth quarter of 2014.

 

Net profit was US$0.08 million in the fourth quarter of 2015, as compared to net loss of US$0.64 million in the third quarter of 2015 and net loss of US$0.04 million in the fourth quarter of 2014.

 

Net profit per basic and diluted ADS was US$0.00 in the fourth quarter of 2015, as compared to net loss per basic and diluted ADS of US$0.01 in the third quarter of 2015 and US$0.00 in the fourth quarter of 2014. Weighted average ADSs used to calculate basic and diluted net loss per ADS were 47.7 million in the fourth quarter of 2015, 47.7 million in the third quarter of 2015 and 47.6 million in the fourth quarter of 2014.

 

Fiscal year 2015 Financial Results

 

Total revenues were US$10.91 million in 2015, compared to US$8.58 million in 2014. The Company reported higher revenues in 2015 due to increased volume from its advertising partners compared to the year 2014.

 

Cost of revenues was US$8.04 million in 2015, representing 73.7% of total revenues, as compared to US$12.14 million, or 141.5% of revenues, in 2014.

 

The cost of revenues decreased by US$4.10 million or 33.8% in 2015 as a result of (1) a decrease in bandwidth costs by US$1.49 million as the Company optimized bandwidth efficiency in 2015; (b) a decrease in content costs of US$0.53 million as there being few content costs incurred in 2015; and (c) a decrease in staff costs by US$1.32 million as a result of headcount reductions in 2014.

 

Gross profit was US$2.86 million in 2015, as compared to a gross loss of US$3.56 million in 2014.

 

Operating expenses were US$5.03 million in 2015 as compared to US$9.42 million in 2014. The operating expenses significantly decreased by US$4.39 million or 46.6% in 2015 as a result of (a) a decrease of staff costs by US$2.62 million as a result of headcount reductions in mid 2014; (b) a decrease of office rental expenses by US$0.49 million as the Company reduced office space since the second quarter of 2015, and (c) a bad debt expenses of US$0.99 million incurred in 2014 compared to no such costs in 2015.

 

Operating loss was US$2.16 million in 2015 as compared to US$12.97 million in 2014.

 

Net loss was US$2.05 million in 2015 as compared to US$10.73 million in 2014.

 

Net loss per basic and diluted ADS was US$0.04 in 2015 as compared to US$0.23 in 2014. Weighted average ADSs used to calculate basic and diluted net loss per ADS were 47.7 million in 2015 and 47.5 million in 2014.

 



 

Balance Sheet Highlights

 

As of December 31, 2015, the Company had US$7.70 million in cash and cash equivalents, as compared to US$4.38 million as of December 31, 2014. The increase was primarily attributable to a loan of RMB30 million (equals to US$4.84 million at the transaction date) extended from Mr. Xudong Xu, our previous significant shareholder in March 2015. On May 12, 2015, following our change of ownership, the RMB30 million loan was assumed by Shanda Computer (Shanghai) Co., Ltd (“Shanda Computer”), a wholly-owned subsidiary of Shanda Interactive Entertainment Limited.

 

Liquidity and Going Concern

 

Substantial doubt exists as to the Company’s ability to continue as a going concern, primarily due to (a) uncertainties associated with the amount of and growth in revenues from (i) an advertising agency agreement with Huzhong, the Company’s new third party advertising agent since late August 2014, (ii) other sources; and; (b) uncertainties as to the availability and timing of additional financing with terms acceptable to the Company.

 

The unaudited consolidated financial information included in this news release do not include any adjustments that might result from the outcome of these uncertainties and were prepared on the basis of a going concern which contemplates that the Company will be able to realize assets and discharge liabilities in the normal course of business.

 

Subsequent events

 

On January 8, 2016, the Company repaid RMB1.95 million to Shanda Computer, regarding the loan agreement signed in 2015 with original total principal of RMB30 million. After the repayment, the principal payable balance to Shanda Computer regarding the loan agreement decreased to RMB28.05 million.

 

In addition, on January 5, 2016, the Company entered into a new loan agreement with Shanda Technology Overseas Capital Company Limited (“Shanda Technology”), pursuant to which Shanda Technology agreed to provide a loan of US$0.3 million to the Company, which the Company has received.

 



 

About Ku6 Media Co., Ltd.

 

Ku6 Media Co., Ltd. (NASDAQ: KUTV) is a leading internet video company in China focused on User Generated Content (“UGC”). Through its premier online brand and online video website, www.ku6.com, Ku6 Media provides online video uploading and sharing services, video reports, information and entertainment in China. For more information about Ku6 Media, please visit http://ir.ku6.com.

 

Forward-looking Statements

 

This news release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “believes,” “could,” “expects,” “may,” “might,” “should,” “will,” or “would,” and by similar statements. Forward-looking statements are not historical facts, but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of its control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Some of the risks and important factors that could affect the Company’s future results and financial condition include: continued competitive pressures in China’s internet video portal market; changes in technology and consumer demand in this market; the risk that Ku6 Media may not be able to control its expenses in the future; regulatory changes in China with respect to the operations of internet video portal websites; the ability of the Company to consistently derive revenues from its renewed agreement with Huzhong; the success of Ku6 Media’s ability to sell advertising and other services on its websites; and other risks outlined in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 20-F. Ku6 Media does not undertake any obligation to update this forward-looking information, except as required under law.

 

Contact:

For further information, please contact:

 

At the Company:

Ms. Wendy Xuan

Investor Relations Manager
Telephone: +86 10 5758 6819
ir@ku6.com

 

Investor Relations:

The Equity Group Inc.

Ms. Katherine Yao,

Senior Associate

Telephone: +86 10 6587 6435

kyao@equityny.com

 



 

Ku6 Media Co., Ltd.

Consolidated Balance Sheets

 

(Amounts in thousands,
except for number of shares)

 

December 31,
2014
US$

 

December 31,
2015
US$

 

December 31,
2015
RMB

 

 

 

 

 

(Unaudited)

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

4,380

 

7,698

 

49,866

 

Accounts receivable, net

 

114

 

91

 

592

 

Accounts receivable due from related parties

 

1

 

12

 

78

 

Prepaid expenses and other current assets

 

490

 

528

 

3,418

 

Other receivables due from related parties

 

3

 

 

 

Total current assets

 

4,988

 

8,329

 

53,954

 

Non-current assets:

 

 

 

 

 

 

 

Property and equipment, net

 

294

 

515

 

3,333

 

Investment in equity affiliate

 

 

169

 

1,092

 

Deposits and other non-current assets

 

348

 

 

 

 

TOTAL ASSETS

 

5,630

 

9,013

 

58,379

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ DEFICIT

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

3,076

 

2,824

 

18,294

 

Accounts payable due to related parties

 

710

 

913

 

5,911

 

Accrued expenses and other current liabilities

 

5,980

 

5,690

 

36,856

 

Related party loan payable

 

 

4,631

 

30,000

 

Other payables due to related parties

 

 

253

 

1,641

 

Total liabilities

 

9,766

 

14,311

 

92,702

 

 

 

 

 

 

 

 

 

Shareholders’ deficit:

 

 

 

 

 

 

 

Ordinary shares (US$0.00005 par value; 12,000,000,000 shares authorized; 4,763,360,860 and 4,771,610,860 shares issued and outstanding as of December 31, 2014 and 2015, respectively)

 

238

 

239

 

1,545

 

Additional paid-in capital

 

184,538

 

185,094

 

1,199,000

 

Accumulated deficit

 

(187,096

)

(189,147

)

(1,225,257

)

Accumulated other comprehensive loss

 

(1,816

)

(1,484

)

(9,611

)

Total shareholders’ deficit

 

(4,136

)

(5,298

)

(34,323

)

TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT

 

5,630

 

9,013

 

58,379

 

 

6



 

Ku6 Media Co., Ltd.

Consolidated Statements of Operations

 

(Amounts in thousands,

 

For the Three Months Ended

 

For the Twelve Months Ended

 

except for number of shares
and ADS and per share and
per ADS data)

 

December 31,
2014
US$

 

September 30,
2015
US$

 

December 31,
2015
US$

 

December 31,
2015
RMB

 

December 31,
2014
US$

 

December 31,
2015
US$

 

December 31,
2015
RMB

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

(Unaudited)

 

(Unaudited)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third parties

 

2,519

 

2,413

 

3,642

 

23,541

 

4,267

 

10,787

 

68,355

 

Related parties

 

946

 

40

 

81

 

251

 

4,317

 

121

 

251

 

Total revenues

 

3,465

 

2,453

 

3,723

 

23,792

 

8,584

 

10,908

 

68,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third parties

 

2,147

 

1,835

 

1,780

 

11,374

 

11,231

 

7,387

 

46,333

 

Related parties

 

239

 

215

 

 

 

910

 

657

 

4,101

 

Total cost of revenues

 

2,386

 

2,050

 

1,780

 

11,374

 

12,141

 

8,044

 

50,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit / (loss)

 

1,079

 

403

 

1,943

 

12,418

 

(3,557

)

2,864

 

18,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product development

 

8

 

 

 

 

1,385

 

 

 

Sales and marketing

 

175

 

288

 

1,053

 

6,729

 

942

 

1,805

 

11,419

 

General and administrative

 

1,020

 

722

 

782

 

4,999

 

7,088

 

3,223

 

20,213

 

Total operating expenses

 

1,203

 

1,010

 

1,835

 

11,728

 

9,415

 

5,028

 

31,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

 

(124

)

(607

)

108

 

690

 

(12,972

)

(2,164

)

(13,460

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

12

 

52

 

60

 

384

 

47

 

187

 

1,181

 

Other income/expenses

 

73

 

5

 

(2

)

(11

)

745

 

204

 

1,257

 

Interest expense - related party loan

 

 

(79

)

(78

)

(498

)

 

(261

)

(1,640

)

Gain from disposal of equity interest in affiliates

 

 

 

 

 

1,452

 

 

 

Equity in loss of affiliate

 

 

(12

)

(5

)

(34

)

 

(17

)

(107

)

Profit/(loss) before income tax benefit

 

(39

)

(641

)

83

 

531

 

(10,728

)

(2,051

)

(12,769

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit/(loss)

 

(39

)

(641

)

83

 

531

 

(10,728

)

(2,051

)

(12,769

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share - basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit/(loss)

 

US$

(0.00

)

US$

(0.00

)

US$

0.00

 

RMB

0.00

 

US$

(0.00

)

US$

(0.00

)

RMB

(0.00

)

Weighted average shares used in per share calculation — basic/diluted

 

4,763,369,860

 

4,771,610,860

 

4,771,610,860

 

4,771,610,860

 

4,746,450,872

 

4,767,742,804

 

4,767,742,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per ADS - basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit/(loss)

 

US$

(0.00

)

US$

(0.01

)

US$

0.00

 

RMB

0.01

 

US$

(0.23

)

US$

(0.04

)

RMB

(0.27

)

Weighted average ADSs used in per ADS calculation — basic/diluted

 

47,633,609

 

47,716,109

 

47,716,109

 

47,716,109

 

47,464,509

 

47,677,428

 

47,677,428

 

 

7



 

Ku6 Media Co., Ltd.

Consolidated Statements of Cash Flows

 

 

 

For the Three Months Ended

 

For the Twelve Months Ended

 

 

 

December 31,
2014

 

September 30,
2015

 

December 31,
2015

 

December 31,
2015

 

December 31,
2014

 

December 31,
2015

 

December 31,
2015

 

(Amounts in thousands)

 

US$

 

US$

 

US$

 

RMB

 

US$

 

US$

 

RMB

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

(Unaudited)

 

(Unaudited)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit/(loss)

 

(39

)

(641

)

83

 

531

 

(10,728

)

(2,051

)

(12,769

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expenses

 

144

 

78

 

69

 

445

 

601

 

282

 

1,827

 

Depreciation and amortization

 

199

 

73

 

263

 

1,702

 

1,048

 

555

 

3,595

 

Equity in loss of affiliated company

 

 

12

 

5

 

35

 

 

17

 

110

 

Bad debt provision

 

 

 

 

 

988

 

 

 

Gain on derecognition of aged operating liabilities

 

 

 

 

 

(207

)

(14

)

(91

)

Exchange losses/(gains)

 

84

 

56

 

52

 

341

 

225

 

(367

)

(2,377

)

Gain on disposal of property and equipment

 

 

(24

)

(1

)

(7

)

 

(115

)

(745

)

Gain from disposal of equity interest in affiliates

 

 

 

 

 

(1,452

)

 

 

Changes in assets and liabilities, net of acquisitions and dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

20

 

86

 

(7

)

(45

)

(1,037

)

23

 

149

 

Prepaid expenses and other current assets

 

32

 

(116

)

42

 

274

 

(104

)

(38

)

(246

)

Amount due from related parties

 

816

 

(22

)

14

 

90

 

6,564

 

(11

)

(71

)

Deposits and other non-current assets

 

 

 

 

 

 

(9

)

348

 

2,254

 

Accounts payable

 

(10

)

(351

)

(341

)

(2,208

)

(676

)

(252

)

(1,632

)

Accrued expenses and other current liabilities

 

123

 

642

 

(26

)

(171

)

(1,207

)

(290

)

(1,879

)

Amount due to related parties

 

231

 

(108

)

(372

)

(2,410

)

784

 

456

 

2,954

 

Net cash provided by (used in) operating activities

 

1,600

 

(315

)

(219

)

(1,423

)

(5,210

)

(1,457

)

(8,921

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1

)

(2

)

(12

)

(210

)

(16

)

(104

)

Proceeds from disposal of property and equipment

 

 

24

 

1

 

7

 

2

 

115

 

745

 

Repayment of loans from related parties controlled by Shanda

 

 

 

 

 

499

 

 

 

Proceeds from disposal of equity interest in affiliates

 

 

 

 

 

1,452

 

 

 

Net cash provided by (used in) investing activities

 

 

23

 

(1

)

(5

)

1,743

 

99

 

641

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

 

 

 

339

 

13

 

84

 

Borrowings from related parties controlled by Shanda

 

 

 

 

 

5,847

 

4,631

 

30,000

 

Net cash provided by financing activities

 

 

 

 

 

6,186

 

4,644

 

30,084

 

Effect of exchange rate changes on cash and cash equivalents

 

7

 

20

 

12

 

1,044

 

(10

)

32

 

882

 

Net increase (decrease) in cash and cash equivalents

 

1,607

 

(272

)

(208

)

(384

)

2,709

 

3,318

 

22,686

 

Cash and cash equivalents, beginning of period

 

2,773

 

8,178

 

7,906

 

50,250

 

1,671

 

4,380

 

27,180

 

Cash and cash equivalents, end of period

 

4,380

 

7,906

 

7,698

 

49,866

 

4,380

 

7,698

 

49,866

 

 

8


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