0001193125-13-444797.txt : 20131118 0001193125-13-444797.hdr.sgml : 20131118 20131118091733 ACCESSION NUMBER: 0001193125-13-444797 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20131118 FILED AS OF DATE: 20131118 DATE AS OF CHANGE: 20131118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SKY-MOBI Ltd CENTRAL INDEX KEY: 0001500252 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34988 FILM NUMBER: 131225593 BUSINESS ADDRESS: STREET 1: 10/F, Building B, United Mansion STREET 2: No. 2, Zijinhua Road, Hangzhou CITY: Zhejiang STATE: F4 ZIP: 310013 BUSINESS PHONE: 8657187770978 MAIL ADDRESS: STREET 1: 10/F, Building B, United Mansion STREET 2: No. 2, Zijinhua Road, Hangzhou CITY: Zhejiang STATE: F4 ZIP: 310013 FORMER COMPANY: FORMER CONFORMED NAME: PROFIT STAR LTD DATE OF NAME CHANGE: 20100830 6-K 1 d631590d6k.htm FORM 6-K Form 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 November 2013

 

 

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

 

 

 


Exhibit Index

 

99.1    Press Release

 

2


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/ John Bi

Name:   John Bi
Title:   Chief Financial Officer

Date: November 18, 2013

 

3


Exhibit 99.1

Sky-mobi Limited Announces Unaudited Financial Results for the Fiscal Second Quarter 2014

HANGZHOU, China, November 18, 2013 — Sky-mobi Limited (“Sky-mobi” or the “Company”) (NASDAQ: “MOBI”), a leading mobile application store in China, today announced unaudited financial results for the fiscal second quarter ended September 30, 2013 (“second quarter 2014”).

Second Quarter 2014 Highlights

 

   

Total revenues decreased 16.6% to RMB116.6 million (US$19.1 million) compared to RMB139.8 million in the fiscal second quarter ended September 30, 2012 (“the prior year period”). Revenues from smartphones represented 33.6% of total revenues

 

   

Gross margin decreased to 23.3%, compared to 24.6% in the prior year period

 

   

Non-IFRS1 gross margin decreased to 23.5%, compared to 25.3% in the prior year period

 

   

Loss from operations decreased to RMB2.3 million (US$0.4 million), compared to loss from operations of RMB15.3 million in the prior year period

 

   

Non-IFRS profit from operations increased to RMB0.7 million (US$0.1 million), compared to non-IFRS loss from operations of RMB7.3 million in the prior year period

 

   

Net loss decreased to RMB4.4 million (US$0.7 million), compared to net loss of RMB11.7 million in the prior year period

 

   

Non-IFRS net loss decreased to RMB1.5 million (US$0.2 million), compared to non-IFRS net loss of RMB3.6 million in the prior year period

 

   

Basic and diluted loss per common share was RMB0.02 (US$0.00), which represents the equivalent of RMB0.13 (US$0.02) per ADS2

 

   

Non-IFRS basic and diluted loss per common share was RMB0.00 (US$0.00), which represents the equivalent of RMB0.03 (US$0.01) per ADS

 

 

1  Non-IFRS figures exclude share-based compensation expenses. Please see “About Non-IFRS Financial Measures” in this release for more information.
2  American Depositary Shares (“ADSs”) are traded on the NASDAQ Global Market, each of which represents eight common shares of the Company.


Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi, stated, “We are pleased that our fiscal second quarter 2014 revenues exceeded the high end of our prior guidance by approximately 11% due to stronger than expected growth in our smartphone business. Anticipating the continued decline of the feature phone market, we have continued to effectively reallocate cash flow and resources away from our feature phone business and into development of our smartphone platform. By focusing more heavily on growing our smartphone business, we were able to see revenues from this line more than double quarter-over-quarter to over RMB39.2 million, or 33.6% of total revenues. One remarkable phenomenon behind this growth is that long-time Maopao community users on feature phones are more comfortable migrating to smartphones using the familiar features we offer them. As a result, this same group of users is quickly developing increased digital consumption habits through our smartphone Maopao platform. These impressive results demonstrate the strong growth and monetization potential of our large Maopao community user base accumulated in our feature phone business.

“We have proven our strategy of user penetration through two competitive distribution channels: pre-installations with smartphone handset manufactures and engagement with physical stores where we install mobile applications on smartphones directly. By adding over 360,000 new users per day, these initiatives have allowed us to grow to over 73.4 million users on our smartphone platform. We believe the success achieved from this long-term strategy will continue to be a significant entry barrier for our competitors in the fast-growth, low-cost smartphone market. In addition, another key element to strengthening our position in the smartphone business is our content offering. We strive to provide enjoyable and entertaining content to users in order to improve user experience and, in turn, deliver sustainable financial and operational growth.”

John Bi, Chief Financial Officer of Sky-mobi, commented, “We are pleased with the accelerating growth in our smartphone business. Since we began to monetize on our smartphone platform last quarter, this business has become an increasingly important contributor that drives our top-line growth significantly as well as our overall user base expansion. We continued to implement cost control measures to maximize cash flow from our feature phone operations, while allocating more resources to our smartphone business. In the fiscal second quarter, we continued to maintain positive cash flow and had RMB519 million cash and deposits as of September 30, 2013.”


Financial Results for Second Quarter 2014

Total Revenues

Sky-mobi provides revenue breakdown in two forms: by handset type and by source.

Revenues by handset type are broken down into “Feature phone revenues” and “Smartphone revenues”.

Revenues by source are broken down into “Revenues collected from carrier channels”, “Revenues collected from third party channels” and “Other revenues”.

 

     For the three months ended         
     September 30,         
     2012      2013      2013  
In thousands    (RMB)      (RMB)      (US$)  

Revenues by handset type:

        

Feature phone revenues

     139,831         77,420         12,651   

Smartphone revenues

     —           39,163         6,399   
  

 

 

    

 

 

    

 

 

 

Total revenues

     139,831         116,583         19,050   
  

 

 

    

 

 

    

 

 

 

 

     For the three months ended         
     September 30,         
     2012      2013      2013  
In thousands    (RMB)      (RMB)      (US$)  

Revenues by source:

        

Revenues collected from carrier channels

     99,360         67,830         11,084   

Revenues collected from third party Channels

     36,826         32,521         5,314   

Other revenues

     3,645         16,232         2,652   
  

 

 

    

 

 

    

 

 

 

Total revenues

     139,831         116,583         19,050   
  

 

 

    

 

 

    

 

 

 

Total revenues for second quarter 2014 decreased 16.6% to RMB116.6 million (US$19.1 million) from RMB139.8 million in the prior year period. Revenues from the smartphone business amounted to RMB39.2 million (US$6.4 million), representing 33.6% of the Company’s total revenues in second quarter 2014. The company’s smartphone revenues as a percentage of total revenues more than doubled from the fiscal first quarter ended June 30, 2013 due to the increased user base and higher monetization rate on the smartphone business.


Revenues collected from carrier channels (which principally consist of application store revenues) were RMB67.8 million (US$11.1 million) in second quarter 2014, representing 58.2% of total revenues, decreasing 31.7% from RMB99.4 million in the prior year period. The decrease in revenues collected from carrier channels was primarily due to fewer user visits and downloads from the feature phone Maopao application store resulting from the shrinking feature phone market, partially offset by increased revenue from the Company’s smartphone Maopao application store and a higher monetization rate resulting from direct cooperation with mobile operators. Sky-mobi had 700.5 million user visits and 128.5 million smartphone application store downloads during the second quarter 2014, increasing from 6.9 million and 10.2 million, respectively, in the prior year period.

Due to a substantial increase in user visits and downloads on the Company’s smartphone Maopao application store, the Company’s smartphone Maopao application store generated approximately RMB28.9 million (US$5.0 million) in second quarter 2014, representing 42.5% of total revenues collected from carrier channels. The Company believes that its smartphone user visits and downloads will increase steadily in future quarters as it expands its user base.

Revenues collected from third party channels, which principally consist of Maopao community revenues from both feature phone and smartphone handsets, were RMB32.5 million (US$5.3 million), down 11.7% from the prior year period and contributing 27.9% of total revenues in second quarter 2014. Sky-mobi had 5.1 million active members and 414.0 million member log-ins on the Maopao Community during second quarter 2014, representing a decrease from 15.0 million active members and 778.4 million member log-ins in the prior year period, Revenues from the Maopao Community decreased due to a decline in active members and log-ins on feature phones, partially offset by an increase in active members and log-ins on the Company’s smartphone platform, which is especially the case with loyal Maopao Community users migrating to smartphones, and higher ARPU3 on the Company’s two most popular mobile social games, “Fantasy of Three Kingdoms” and “Fairy Magic World”, which are also available on smartphone handsets. The Company expects that the Maopao community revenues collected from smartphone handsets will continuously contribute to its revenue collected from third party channels and that revenue collected from third party channels will contribute a steady percentage of total revenues in future quarters.

Other revenues were RMB16.2 million (US$2.7 million) in second quarter 2014, increased significantly from RMB3.6 million the prior year period. The increase was primarily due to the Company’s strengthened efforts in developing its promotional services on its Maopao platforms on feature phones and smartphones, as well as growth of its application store and related services outside of China. Other revenues consist of commissions from companies for using feature phone and smartphone Maopao platforms to promote and sell applications (“promotional income”) as well as overseas revenues generated by the Company’s international mobile service providers.

 

 

3  ARPU represents average revenue per user.


Cost of Revenues and Gross Profit

Total cost of revenues for second quarter 2014 decreased 15.2% to RMB89.4 million (US$14.6 million) compared to RMB105.5 million in the prior year period.

Total non-IFRS cost of revenues for second quarter 2014 decreased 14.7% to RMB89.2 million (US$14.6 million) compared to RMB104.5 million in the prior year period.

 

     For the three months ended        
     September 30,        
     2012     2013     2013  
In thousands    (RMB)     (RMB)     (US$)  

Cost of revenues:

      

Costs associated with payments to industry participants

     93,909        81,478        13,314   

Direct costs

     11,542        7,939        1,297   
  

 

 

   

 

 

   

 

 

 

Total cost of revenues:

     105,451        89,417        14,611   
  

 

 

   

 

 

   

 

 

 

Gross Margin

     24.6     23.3  

Non-IFRS cost of revenues:

      

Costs associated with payments to industry participants

     93,909        81,478        13,314   

Direct costs

     10,586        7,695        1,257   
  

 

 

   

 

 

   

 

 

 

Total non-IFRS cost of revenues:

     104,495        89,173        14,571   
  

 

 

   

 

 

   

 

 

 

Non-IFRS Gross Margin

     25.3     23.5  

Non-IFRS cost of revenues is defined as cost of revenues excluding share-based compensation expenses. The discussion and analysis below focuses on non-IFRS cost of revenues, which the Company believes more accurately reflects the Company’s operating performance than IFRS cost of revenues.

Non-IFRS costs associated with payments to industry participants decreased 13.2% to RMB81.5 million (US$13.3 million) in second quarter 2014, compared to RMB93.9 million in the prior year period. This decrease was primarily due to reduced channel costs, which were in-line with the decline in revenues, and cost savings from dealing directly with mobile operators, partially offset by increased content provider costs due to the higher sharing percentage with smartphone content providers.

Non-IFRS direct costs decreased 27.3% to RMB7.7 million (US$1.3 million) in second quarter 2014 compared to RMB10.6 million in the prior year period. Non-IFRS direct costs included salaries and benefits, depreciation, office expenses and utilities directly related to the operation of Maopao application stores on feature phones and smartphones. The decrease was primarily due to a reduction in overall headcount in the Company’s feature phone market business, which reflected the Company’s strategy to focus on the smartphone market.


Non-IFRS gross profit for second quarter 2014 decreased 22.4% to RMB27.4 million (US$4.5 million) compared to RMB35.3 million the prior year period. Non-IFRS gross margin in second quarter 2014 was 23.5%, down from 25.3% the prior year period. This decrease was principally due to increased smartphone revenues with lower profit margins resulting from the Company’s higher revenue sharing percentage with smartphone handset partners and content providers in order to expand its smartphone user base as well as improve the content and applications offered to smartphone users.

Operating Expenses

Total operating expenses, primarily consisting of employee salaries and benefits, training expenses, traveling, entertainment and office related expenses, decreased 40.7% in second quarter 2014 to RMB29.4 million (US$4.8 million) from RMB49.7 million in the prior year period, primarily due to the decrease in headcount.

Total non-IFRS operating expenses were RMB26.7 million (US$4.4 million) in second quarter 2014, a decrease of 37.2% from RMB42.6 million in the prior year period.

 

     For the three months ended        
     September 30,        
     2012      2013     2013  
In thousands    (RMB)      (RMB)     (US$)  

Operating expenses:

       

Research and development expenses

     23,008         8,296        1,356   

Sales and marketing expenses

     8,342         7,118        1,163   

General and administrative expenses

     18,263         14,067        2,299   

Other income and expense

     43         (49     (8
  

 

 

    

 

 

   

 

 

 

Total operating expenses

     49,656         29,432        4,810   
  

 

 

    

 

 

   

 

 

 

Non-IFRS operating expenses:

       

Research and development expenses

     20,769         7,715        1,261   

Sales and marketing expenses

     7,518         6,912        1,129   

General and administrative expenses

     14,256         12,158        1,987   

Other income and expense

     43         (49     (8
  

 

 

    

 

 

   

 

 

 

Total non-IFRS operating expenses

     42,586         26,736        4,369   
  

 

 

    

 

 

   

 

 

 

Non-IFRS operating expenses are defined as operating expenses excluding share-based compensation expenses.

The decrease in operating expenses was primarily due to reduced overall headcount in connection with the Company’s strategic reorganization, which rebalanced headcount between the smartphone and feature phone businesses and reduced resources in the feature phone business.


The Company’s employee headcount decreased to 423 as of September 30, 2013 from 685 as of September 30, 2012 as described in the table below.

 

    

As of

September 30,

    

As of

June 30,

     As of
September 30,
 
     2012      2013      2013  

Headcount

        

Operations

     122         77         79   

Research and development

     369         139         151   

Sales and marketing

     96         100         119   

General and administrative

     98         79         74   
  

 

 

    

 

 

    

 

 

 

Total headcount

     685         395         423   
  

 

 

    

 

 

    

 

 

 

Average headcount for the three months

     684         450         414   

Net Profit/Loss and Earnings/Loss Per Share

Net loss in second quarter 2014 decreased to RMB4.4 million (US$0.7 million), from RMB11.7 million in the prior year period. This improvement in net loss was attributable to the reduction in operating expenses as the Company realigned away from the feature phone business towards the smartphone business, which was partially offset by RMB 4.4 million (US$0.7 million) income tax expenses resulting from the change of the holding entity of certain equity investments for tax planning purposes and RMB1.5 million (US$0.3 million) impairment losses on investments in associates and available-for-sale investments.

Non-IFRS net loss in second quarter 2014 decreased to RMB1.5 million (US$0.2 million), from RMB3.6 million in the prior year period.

Basic and diluted loss per common share in second quarter 2014 was RMB0.02 (US$0.00), which represents the equivalent of RMB0.13 (US$0.02) per ADS.

Non-IFRS basic and diluted loss per common share in second quarter 2014 was RMB0.00 (US$0.00), which represents the equivalent of RMB0.03 (US$0.01) per ADS.

The weighted average number of ADSs used to calculate basic and diluted earnings per ADS for second quarter 2014 was 29,796,691.


Common Shares

Sky-mobi had 252.3 million common shares outstanding as of September 30, 2013, or the equivalent of 31.5 million ADSs outstanding.

Other Operating Data

The following table sets forth total feature phone application store downloads and smart phone application store downloads for the periods indicated:

 

     For the three months ended         
     September 30,         
In millions    2012      2013      % change  

Feature Phone Application Store

        

User visits

     3,066.3         806.8         -73.7

Single-user application and content downloads

        

Single-player games

     245.3         107.6         -56.1

Other Single-user applications and content titles

     411.9         136.1         -67.0
  

 

 

    

 

 

    

Total Single-user application and content downloads

     657.2         243.7         -62.9
  

 

 

    

 

 

    

Multiplayer games downloads

     41.0         17.8         -56.6
  

 

 

    

 

 

    

Total feature phone application store downloads

     698.2         261.5         -62.5
  

 

 

    

 

 

    

 

     For the three months ended  
     September 30,  
In millions    2012      2013  

Smartphone Application Store

     

User visits

     6.9         700.5   

Single-user application and content downloads

     

Single-player games

     2.7         37.1   

Other Single-user applications and content titles

     7.5         89.8   
  

 

 

    

 

 

 

Total Single-user application and content downloads

     10.2         126.9   
  

 

 

    

 

 

 

Multiplayer games downloads

     0.0         1.6   
  

 

 

    

 

 

 

Total smartphone application store downloads

     10.2         128.5   
  

 

 

    

 

 

 


The following table sets forth the number of registered members, active members and member log-ins for the Company’s Maopao Community on feature phones and smartphones as of the dates indicated:

 

     As of September 30,         
In millions    2012      2013      % change  

Number of registered members

     215.3         267.0         24.0
     For the three months ended         
     September 30,         
In millions    2012      2013      % change  

Maopao Community

        

Number of active members

     15.0         5.1         -66.0

Number of member log-ins

     778.4         414.0         -46.8

Business Outlook

For the fiscal third quarter 2014 ending December 31, 2013, Sky-mobi expects total revenues to be in the range of RMB 90 million to RMB 100 million.

These are Sky-mobi’s current projections, which are subject to change.


Conference Call and Webcast

Sky-mobi’s management team will host a conference call today November 18, 2013 at 8:00 AM EST, (or 5:00 AM U.S. Pacific Standard Time and 9:00 PM, Beijing/Hong Kong time) to discuss the Company’s 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:    #98789361

The replay will be accessible through November 26, 2013 by dialing the following numbers:

 

United States Toll Free:    +1- 855-452-5696
International:    +61-2-8199-0299
Conference ID:    #98789361

A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.sky-mobi.com

About Non-IFRS Financial Measures

To supplement its consolidated financial statements prepared in accordance with International Financial Reporting Standards, or IFRS, Sky-mobi uses several non-IFRS financial measures defined below. The Company believes management and investors benefit from non-IFRS financial measures in assessing the Company’s performance and prospects. 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 share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense. Management provides 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 containing reconciliations of non-IFRS financial measures to comparable IFRS measures 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 profit is defined as revenues less non-IFRS cost of revenues.

Non-IFRS operating expenses are defined as operating expenses excluding share-based compensation expenses.

Non-IFRS profit (loss) from operations is defined as Non-IFRS gross profit less non-IFRS operating expenses.

Non-IFRS net profit (loss) is defined as non-IFRS profit (loss) from operations plus/minus other gains or losses, impairment loss on investments in associates, impairment loss on available-for-sale investments and share of results of associates, less income tax.

Non-IFRS basic and diluted earnings (losses) per common share/ADS are defined as non-IFRS net profit (loss) attributable to owners of the Company 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 RMB6.12 to US$1.00, the exchange rate at September 30, 2013 as set forth in the H.10 statistical release of the Federal Reserve Board.

When calculating the number of Maopao users, 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. A user may make multiple download requests 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 on feature phones or smartphones 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 “may,” “will,” ‘‘believes,’’ ‘‘expects,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘estimates,’’ “plans,” “continues” or other similar expressions, the negative of these terms, or other comparable terminology. Such statements, including 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 revenue projections for future periods; the Company’s ability to maintain relationships with handset companies, content providers and payment service providers; its dependence on mobile service providers and 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 growing smart phone market; its ability to obtain and maintain 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 described in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on June 28, 2013.These forward-looking statements are based on current expectations, assumptions, estimates and projections about the Company and its 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 in terms of the user visits to the Company’s Maopao application store. 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.


Contact:

 

Sky-mobi Limited

 

Mr. John Bi, CFO

 

Phone: + (86) 571-87770978 (China)

 

Email: investor.relations@sky-mobi.com

 

ICR Inc

 

Jeremy Peruski, Senior Vice President

 

Phone: + (1) (646) -915-1615 (US)

 

Email: investor.relations@sky-mobi.com


FINANCIAL TABLES FOLLOW

Sky-mobi Limited

Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income (IFRS)

 

     For the three months ended     For the six months ended  
     September 30,     September 30,  
     2012     2013     2013     2012     2013     2013  
In thousands    (RMB)     (RMB)     (US$)     (RMB)     (RMB)     (US$)  
(Except for share and per share data)                                     

Revenues

     139,831        116,583        19,050        293,186        241,800        39,510   

Cost of revenues

     (105,451     (89,417     (14,611     (221,747     (180,387     (29,475
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     34,380        27,166        4,439        71,439        61,413        10,035   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Research and development expenses

     (23,008     (8,296     (1,356     (43,083     (20,084     (3,282

Sales and marketing expenses

     (8,342     (7,118     (1,163     (17,272     (17,882     (2,922

General and administrative expenses

     (18,263     (14,067     (2,299     (35,533     (29,531     (4,825

Other income and expense

     (43     49        8        17        10        2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (49,656     (29,432     (4,810     (95,871     (67,487     (11,027
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (15,276     (2,266     (371     (24,432     (6,074     (992

Other gains and losses

     4,222        4,168        681        8,718        7,013        1,146   

Impairment loss on investments in associates

     —          (727     (119     —          (727     (119

Impairment loss on available-for-sale investments

     —          (800     (131     —          (800     (131

Share of results of associates

     (498     96        16        (779     1,552        254   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

     (11,552     471        76        (16,493     964        158   

Income tax expenses

     (108     (4,919     (804     (275     (5,743     (938
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss for the period

     (11,660     (4,448     (728     (16,768     (4,779     (780
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss for the period

     (11,660     (4,448     (728     (16,768     (4,779     (780
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit (loss) and total comprehensive income (loss)attributable to:

- Owners of the Company

     (11,768     (3,939     (645     (16,867     (4,393     (717

- Non-controlling interests

     108        (509     (83     99        (386     (63
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     (11,660     (4,448     (728     (16,768     (4,779     (780
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Losses per common share

            

Basic

     (0.04     (0.02     (0.00     (0.06     (0.02     (0.00

Diluted

     (0.04     (0.02     (0.00     (0.06     (0.02     (0.00

Weight average number of ADS

            

Basic

     32,273,875        29,796,691          32,273,853        30,034,578     

Diluted

     32,273,875        29,796,691          32,273,853        30,034,578     

Weight average number of shares

            

Basic

     258,191,000        238,373,525          258,190,821        240,276,625     

Diluted

     258,191,000        238,373,525          258,190,821        240,276,625     


Unaudited Reconciliations of non-IFRS financial measures

to comparable IFRS financial measures

 

     For the three months ended     For the six months ended  
     September 30,     September 30,  
     2012     2013     2013     2012     2013     2013  
In thousands    (RMB)     (RMB)     (US$)     (RMB)     (RMB)     (US$)  
(Except for share and per share data)                                     

IFRS cost of revenues

     (105,451     (89,417     (14,611     (221,747     (180,387     (29,475

Less: share-based compensation expenses

     956        244        40        1,946        287        47   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-IFRS cost of revenues

     (104,495     (89,173     (14,571     (219,801     (180,100     (29,428
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IFRS gross profit

     34,380        27,166        4,439        71,439        61,413        10,035   

Add: share-based compensation expenses

     956        244        40        1,946        287        47   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-IFRS gross profit

     35,336        27,410        4,479        73,385        61,700        10,082   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total IFRS operating expenses

     (49,656     (29,432     (4,810     (95,871     (67,487     (11,027

Less: share-based compensation expenses

     7,070        2,696        441        14,317        9,744        1,592   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-IFRS operating expenses

     (42,586     (26,736     (4,369     (81,554     (57,743     (9,435
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IFRS loss from operations

     (15,276     (2,266     (371     (24,432     (6,074     (992

Add: share-based compensation expenses

     8,026        2,940        481        16,263        10,031        1,639   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-IFRS profit (loss) from operations

     (7,250     674        110        (8,169     3,957        647   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IFRS net loss for the period

     (11,660     (4,448     (728     (16,768     (4,779     (781

Add: share-based compensation expenses

     8,026        2,940        481        16,263        10,031        1,639   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-IFRS net profit (loss) for the period

     (3,634     (1,508     (247     (505     5,252        858   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-IFRS earnings (losses) per common share

            

Basic

     (0.01     (0.00     (0.00     (0.00     0.02        0.00   

Diluted

     (0.01     (0.00     (0.00     (0.00     0.02        0.00   

Weight average number of shares

            

Basic

     258,191,000        238,373,525          258,190,821        240,276,625     

Diluted

     258,191,000        238,373,525          258,190,821        240,276,625     


Sky-mobi Limited

Unaudited Consolidated Statements of Financial Position (IFRS)

 

     As of     As of  
     June 30,     September 30,     September 30,  
     2013     2013  
In thousands    (RMB)     (RMB)     (US$)  

ASSETS

      

Current assets

      

Cash and cash equivalents

     107,368        125,215        20,460   

Term deposits

     507,166        393,776        64,342   

Investment in financial products

     —          85,820        14,023   

Trade and other receivables

     81,678        67,260        10,989   

Amounts due from related parties

     131        2,219        363   
  

 

 

   

 

 

   

 

 

 

Total current assets

     696,343        674,290        110,177   
  

 

 

   

 

 

   

 

 

 

Non-current assets

      

Property and equipment

     12,040        9,401        1,536   

Investments in associates

     29,326        64,085        10,471   

Available-for-sale investments

     7,081        6,248        1,021   

Prepayment for investment

     250        1,450        237   

Other non-current assets

     3,098        3,312        541   

Deferred tax assets

     1,765        1,765        288   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     53,560        86,261        14,094   
  

 

 

   

 

 

   

 

 

 

Total assets

     749,903        760,551        124,271   
  

 

 

   

 

 

   

 

 

 

EQUITY AND LIABILITIES

      

Current liabilities

      

Trade and other payables

     130,713        143,445        23,439   

Income tax liabilities

     4,103        9,022        1,474   

Amounts due to related parties

     7,644        8,109        1,325   

Deferred revenue

     8,436        7,860        1,284   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     150,896        168,436        27,522   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     150,896        168,436        27,522   
  

 

 

   

 

 

   

 

 

 

Equity

      

Share capital

     90        90        15   

Share premium

     628,126        624,385        102,024   

Reserves

     164,647        166,014        27,126   

Treasury stock

     (4     (5     (1

Deficit

     (198,280     (202,288     (33,054
  

 

 

   

 

 

   

 

 

 

Equity attributable to owners of the Company

     594,579        588,196        96,110   

Non-controlling interests

     4,428        3,919        639   
  

 

 

   

 

 

   

 

 

 

Total equity

     599,007        592,115        96,749   
  

 

 

   

 

 

   

 

 

 

Total equity and liabilities

     749,903        760,551        124,271