EX-99.1 2 v460061_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

500.com Limited Announces Financial Results For the Fourth Quarter and Full Year of 2016

 

SHENZHEN, China, February 23, 2017—500.com Limited (NYSE: WBAI) (“500.com” or the “Company”), a leading online sports lottery service provider in China, today reported its unaudited financial results for the fourth quarter and full year of 2016.

 

Temporary Suspension of Online Lottery Sales

 

Since March 2015, all provincial sports lottery administration centers to which the Company provides sports lottery sales services have temporarily suspended accepting online purchase orders for lottery products in response to the Notice related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales, (the “Self-Inspection Notice”), which was jointly promulgated by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People’s Republic of China on January 15, 2015.

 

On February 24, 2015, the Company was informed by certain provincial sports lottery administration centers that, as part of their respective self-inspection processes, such provincial sports lottery administration centers planned to temporarily suspend accepting online purchase orders for lottery products starting from February 25, 2015. On March 2, 2015, the Company was further informed by the remaining provincial sports lottery administration centers to which it provides sports lottery sales services that they also planned to temporarily suspend accepting online purchase orders for lottery products, in response to the Self-Inspection Notice.

 

As a result of the provincial sport lottery administration centers’ decision to temporarily suspend accepting online lottery orders, or temporary suspension, the Company did not generate any revenue from sports lottery sales in the fourth quarter of 2016 and full year of 2016. The Company recorded an operating loss for the fourth quarter and full year of 2016.

 

Investment in Qufan

 

On November 25, 2016, the Company invested in Qufan Internet Technology Inc. and Shenzhen Qufan Internet Technology Co., Ltd. (together “Qufan”), an operator of mobile social poker games. 500.com is investing in ordinary shares representing a 51.0% equity interest in each of Qufan Internet Technology Inc. and Shenzhen Qufan Internet Technology Co., Ltd. for an aggregate cash consideration of RMB110.5 million (approximately US$16.0 million). 500.com will cooperate with Qufan to help develop and promote its mobile social poker games platform.

 

 1 

 

 

Fourth Quarter 2016 Highlights

 

• Net revenues were RMB7.5 million (US$1.1 million), compared with nil for the third quarter of 2016, and RMB0.7 million for the fourth quarter of 2015.
   
• Operating loss was RMB94.9 million (US$13.7 million), compared with operating loss of RMB81.6 million for the third quarter of 2016, and operating loss of RMB72.3 million for the fourth quarter of 2015.
   
• Non-GAAP1 operating loss was RMB61.6 million (US$8.9 million), compared with non-GAAP operating loss of RMB48.3 million for the third quarter of 2016, and non-GAAP operating loss of RMB37.8 million for the fourth quarter of 2015.
   
• Net loss attributable to 500.com was RMB5.7 million (US$0.8 million), compared with net loss attributable to 500.com of RMB75.3 million for the third quarter of 2016, and net loss attributable to 500.com of RMB109.7 million for the fourth quarter of 2015.
   
• Non-GAAP net income attributable to 500.com was RMB27.6 million (US$4.0 million), compared with non-GAAP net loss attributable to 500.com of RMB41.9 million for the third quarter of 2016, and non-GAAP net loss attributable to 500.com of RMB31.3 million for the fourth quarter of 2015.
   
• Basic and diluted losses per ADS were RMB0.14 and RMB0.14, respectively.
   
• Non-GAAP basic and diluted income per ADS were RMB0.67 and RMB0.65, respectively.

 

 

1 Non-GAAP financial measures exclude the impact of share-based compensation expenses, and deferred tax expenses relating to valuation allowance. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in the table at the end of this release.

 

 2 

 

 

Full Year 2016 Highlights

 

• Net revenues were RMB10.9 million (US$1.6 million), compared with RMB99.6 million for the full year 2015.
   
• Operating loss was RMB363.2 million (US$52.3 million), compared with RMB301.4 million for the full year 2015.
   
• Non-GAAP operating loss was RMB199.9 million (US$28.8 million), compared with non-GAAP operating loss of RMB142.8 million for the full year 2015.
   
• Net loss attributable to 500.com was RMB199.6 million (US$28.8 million), compared with RMB323.9 million for the full year 2015.
   
• Non-GAAP net loss attributable to 500.com was RMB36.3 million (US$5.2 million), compared with RMB125.2 million for the full year 2015.
   
• Basic and diluted losses per ADS were RMB4.81 and RMB4.81, respectively.

 

• Non-GAAP basic and diluted losses per ADS were RMB0.87 and RMB0.87, respectively.

 

Mr. Zhengming Pan, the CEO of 500.com, stated, “We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial results for the fourth quarter of 2016. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company’s knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release.”

 

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Fourth Quarter 2016 Financial Results

 

Net Revenues

Net revenues were RMB7.5 million (US$1.1 million), compared with nil for the third quarter of 2016, and RMB0.7 million for the fourth quarter of 2015. Net revenues for the fourth quarter of 2016 were primarily generated from mobile gaming, and sports information and data services from Qufan as well as our newly-launched mobile applications.

 

Operating Expenses

Operating expenses were RMB96.3 million (US$13.9 million), representing an increase of 27.0% from RMB75.8 million during the fourth quarter of 2015, and an increase of 16.9% from RMB82.4 million during the third quarter of 2016. The year-over-year increase was mainly due to increases in salary expenses of RMB7.0 million, rental expenses of RMB4.5 million, consulting expenses of RMB3.9 million, and marketing and promotional expenses relating to mobile gaming and sports information and data services of RMB2.7 million, which were partially offset by a decrease in share-based compensation expenses associated with share options granted to the Company’s employees of RMB1.2 million. In addition, an impairment provision of long-term investment of RMB5.0 million, and a reversal of bad debt provision of RMB7.5 million were made in the fourth quarter of 2015. No such impairments were provided or reversed in the fourth quarter of 2016. The sequential increase was mainly due to increases in salary expenses of RMB9.2 million, rental expenses of RMB2.8 million, and marketing and promotional expenses relating to mobile gaming and sports information and data services of RMB2.4 million, which were partially offset by a decrease in consulting expenses of RMB2.5 million, and a decrease in technical maintenance expenses of RMB1.2 million.

 

Cost of services was RMB4.2 million (US$0.6 million), representing an increase of 20.0% from RMB3.5 million during the fourth quarter of 2015, and an increase of 50.0% from RMB2.8 million during the third quarter of 2016. The year-over-year increase was mainly due to an increase in amortization associated with intangible assets of RMB1.2 million, and a decline in salary expenses of RMB0.5 million. The sequential increase was attributable to an increase in amortization associated with intangible assets of RMB1.2 million.

 

Sales and marketing expenses were RMB12.5 million (US$1.8 million), representing an increase of 43.7% from RMB8.7 million during the fourth quarter of 2015, and an increase of 56.3% from RMB8.0 million during the third quarter of 2016. The year-over-year increase was mainly due to an increase in marketing and promotional expenses relating to mobile gaming and sports information and data services of RMB2.7 million, and an increase in salary expenses of RMB1.5 million. The sequential increase was mainly attributable to increases in marketing and promotional expenses relating to mobile gaming and sports information and data services of RMB2.4 million, and salary expenses of RMB1.7 million.

 

General and administrative expenses were RMB62.8 million (US$9.1 million), representing an increase of 31.1% from RMB47.9 million during the fourth quarter of 2015, and an increase of 10.8% from RMB56.7 million during the third quarter of 2016. The year-over-year increase was attributable to increases in salary expenses of RMB4.6 million, consulting expenses of RMB3.9 million, and rental expenses of RMB4.7 million, which were partially offset by a decrease in share-based compensation expenses associated with share options granted to the Company’s employees of RMB1.2 million. In addition, an impairment provision of long-term investment of RMB5.0 million, and a reversal of bad debt provision of RMB7.5 million were made in the fourth quarter of 2015. No such impairments were provided or reversed in the fourth quarter of 2016. The sequential increase was mainly due to increases in salary expenses of RMB4.4 million, travel expenses of RMB0.8 million, and rental expenses of RMB3.0 million, which were partially offset by a decrease in consulting expenses of RMB2.5 million.

 

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Service development expenses were RMB16.8 million (US$2.4 million), representing an increase of 7.0% from RMB15.7 million during the fourth quarter of 2015, and an increase of 12.0% from RMB15.0 million during the third quarter of 2016. The year-over-year increase was mainly due to an increase in salary expenses of RMB1.4 million. The sequential increase was mainly due to an increase in salary expenses of RMB3.1 million, which was partially offset by a decrease in technical maintenance expenses of RMB1.2 million.

 

Operating Loss

Operating loss was RMB94.9 million (US$13.7 million), compared with operating loss of RMB72.3 million during the fourth quarter of 2015, and operating loss of RMB81.6 million during the third quarter of 2016.

 

Non-GAAP operating loss was RMB61.6 million (US$8.9 million), compared with non-GAAP operating loss of RMB37.8 million during the fourth quarter of 2015, and non-GAAP operating loss of RMB48.3 million during the third quarter of 2016.

 

Net Loss Attributable to 500.com

Net loss attributable to 500.com was RMB5.7 million (US$0.8 million), compared with net loss attributable to 500.com of RMB109.7 million during the fourth quarter of 2015, and net loss attributable to 500.com of RMB75.3 million during the third quarter of 2016. The year-over-year decrease was mainly due to an increase in operating expenses of RMB20.5 million, a settlement payment of RMB10.0 million relating to the stockholder class action lawsuit during the fourth quarter of 2016, which were offset by a gain from the disposal of Sumpay.cn of RMB72.1 million recognized during the fourth quarter of 2016, and deferred tax expenses relating to valuation allowance of RMB43.9 million recognized during the fourth quarter of 2015. The sequential decrease was mainly due to a gain from the disposal of Sumpay.cn of RMB72.1 million recognized during the fourth quarter of 2016.

 

Non-GAAP net income attributable to 500.com was RMB27.6 million (US$4.0 million), compared with non-GAAP net loss attributable to 500.com of RMB31.3 million during the fourth quarter of 2015, and non-GAAP net loss attributable to 500.com of RMB41.9 million during the third quarter of 2016.

 

Full Year 2016 Financial Results

 

Net revenues for the full year 2016 were RMB10.9 million (US$1.6 million), representing a decrease of 89.1% from RMB99.6 million for the full year 2015.

 

Operating loss for the full year 2016 was RMB363.2 million (US$52.3 million), representing an increase of 20.5% from RMB301.4 million for the full year 2015. 

 

Net loss attributable to 500.com for the full year 2016 was RMB199.6 million (US$28.8 million), representing a decrease of 38.4% from RMB323.9 million for the full year 2015. 

 

Non-GAAP net loss attributable to 500.com for the full year 2016 was RMB36.3 million (US$5.2 million), representing a decrease of 71.0% from RMB125.2 million for the full year 2015.

 

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Cash and Cash Equivalents, Restricted Cash, Time Deposits, and Short-term Investments

As of December 31, 2016, the Company had cash and cash equivalents of RMB673.1 million (US$96.9 million), restricted cash2 of RMB3.7 million (US$0.5 million), time deposits3 of RMB804.7 million (US$115.9 million), and short-term investments of RMB100.0 million (US$14.4 million), compared with cash and cash equivalents of RMB449.7 million, restricted cash of RMB3.7 million, time deposits of RMB1,115.2 million, and short-term investments of RMB100.0 million as of September 30, 2016.

 

Prepayments and Other Current Assets

As of December 31, 2016, the balance of prepayment and other current assets was RMB125.5 million (US$18.1 million), compared with RMB23.6 million as of September 30, 2016. The balance as of December 31, 2016 mainly included: (i) the remaining consideration of RMB71.8 million (US$10.3 million) relating to the disposal of equity interest in Sumpay.cn; (ii) the current portion of deferred expenses of RMB20.9 million (US$3.0 million); (iii) receivables from third party payment service providers of RMB13.5 million (US$1.9 million); (iv) interest receivable of RMB4.9 million (US$0.7 million); and (v) other receivables of RMB14.4 million (US$2.2 million).

 

 

2 Restricted cash represents government grants received but pending final clearance.

3 Time deposits represent deposits in commercial banks with original maturities of greater than three months but less than a year.

 

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Business Outlook

 

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

 

Currency Convenience Translation

 

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB6.9430 to US$1.00, as set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2016.

 

About 500.com Limited

 

500.com Limited (NYSE:WBAI) is a leading online sports lottery service provider in China. The Company offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users. 500.com was among the first companies to provide online lottery services in China, and is one of two entities that have been approved by the Ministry of Finance to provide online lottery sales services on behalf of the China Sports Lottery Administration Center, which is the government authority that is in charge of the issuance and sale of sports lottery products in China.

 

Safe Harbor Statements

 

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “going forward,” “outlook” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

 

About Non-GAAP Financial Measures

 

To supplement the Company’s financial results presented in accordance with U.S. GAAP, the Company uses non-GAAP financial measures, which are adjusted from results based on U.S. GAAP to exclude share-based compensation expenses in our consolidated affiliated entities, and deferred tax expense relating to valuation allowance. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in table at the end of this release, which provide more details on the non-GAAP financial measures.

 

Non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of the Company’s continuing operations and prospects for the future. Non-GAAP financial information should not be considered a substitute for or superior to U.S. GAAP results. In addition, calculations of this non-GAAP financial information may be different from calculations used by other companies, and therefore comparability may be limited.

 

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For more information, please contact:

 

500.com Limited

 

ir@500wan.com

 

Christensen

 

In China

Mr. Christian Arnell

Phone: +86-10-5900-1548

E-mail: carnell@christensenir.com

 

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: lbergkamp@ChristensenIR.com

 

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500.com Limited
Condensed Consolidated Balance Sheets
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares)

 

   December 31,
2015		   December 31,
2016		   December 31,
2016		 
   RMB   RMB   US$ 
   Audited   Unaudited   Unaudited 
             
ASSETS               
Current assets:               
Cash and cash equivalents   400,657    673,102    96,947 
Restricted cash   10,599    3,704    533 
Time deposits   1,220,797    804,692    115,900 
Short-term investments   45,540    100,000    14,403 
Accounts receivable   3,638    -    - 
Prepayments and other current assets   30,855    125,533    18,078 
Total current assets   1,712,086    1,707,031    245,861 
                
Non-current assets:               
Property and equipment, net   44,194    53,935    7,768 
Intangible assets, net   200,148    61,547    8,865 
Goodwill   64,899    160,438    23,108 
Deposits   1,217    5,810    837 
Long-term investments   60,332    88,928    12,808 
Other non-current assets   1,621    2,671    386 
Total non-current assets   372,411    373,329    53,772 
                
TOTAL ASSETS   2,084,497    2,080,360    299,633 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities:               
 Accounts payable   106    -    - 
 Accrued payroll and welfare payable   15,890    16,270    2,343 
 Accrued expenses and other current liabilities   140,612    184,155    26,524 
Income tax payable   1,214    9,050    1,303 
Total current liabilities   157,822    209,475    30,170 
                
Non-current liabilities:               
Long-term payables   46,928    44,472    6,405 
Deferred tax liabilities   13,411    14,902    2,146 
Total non-current liabilities   60,339    59,374    8,551 
                
Total liabilities   218,161    268,849    38,721 
                
Shareholders’ Equity:               
Class A ordinary shares, par value US$0.00005 per share, 700,000,000 shares authorized as of  December 31, 2015 and December 31, 2016; 334,034,932 and 335,494,792  shares issued and outstanding as of December 31, 2015 and December 31, 2016, respectively   110    115    17 
Class B ordinary shares, par value US$0.00005 per share; 300,000,000 shares authorized as of December 31, 2015 and December 31, 2016; 84,999,159 and 74,400,299 shares issued and outstanding as of December 31, 2015 and December 31, 2016, respectively   32    28    4 
Additional paid-in capital   2,022,369    2,198,385    316,633 
Treasury shares   (8,773)   (123,258)   (17,753)
Accumulated deficit   (335,363)   (535,002)   (77,056)
Accumulated other comprehensive income   89,488    172,731    24,878 
Total 500.com Limited shareholders’ equity   1,767,863    1,712,999    246,723 
Noncontrolling interests   98,473    98,512    14,189 
Total shareholders' equity   1,866,336    1,811,511    260,912 
                
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   2,084,497    2,080,360    299,633 

 

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500.com Limited
Condensed Consolidated Statements of Comprehensive Income
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares, per share (or ADS) data)

 

   Three Months Ended   Twelve Months Ended 
   December 31,
2015		   December 31,
2016		   December 31,
2016		   December 31,
2015		   December 31,
2016		   December 31,
2016		 
   RMB   RMB   US$   RMB   RMB   US$ 
   Unaudited   Unaudited   Unaudited   Audited   Unaudited   Unaudited 
Net Revenues   707    7,469    1,076    99,552    10,928    1,574 
                               
Operating expenses:                              
Cost of services   (3,460)   (4,183)   (602)   (24,355)   (14,141)   (2,037)
Sales and marketing   (8,715)   (12,493)   (1,799)   (87,022)   (44,921)   (6,470)
General and administrative   (47,937)   (62,843)   (9,051)   (232,244)   (244,362)   (35,195)
Service development expenses   (15,721)   (16,782)   (2,417)   (63,296)   (71,595)   (10,312)
Total operating expenses   (75,833)   (96,301)   (13,869)   (406,917)   (375,019)   (54,014)
Other operating income   1,627    1,461    210    6,910    2,732    393 
Government grant   1,353    2,603    375    2,022    10,017    1,443 
Other operating expense   (140)   (10,103)   (1,455)   (2,975)   (11,894)   (1,713)
Operating loss   (72,286)   (94,871)   (13,663)   (301,408)   (363,236)   (52,317)
Interest income   7,698    8,503    1,225    20,589    23,859    3,436 
Interest expense   (310)   -    -    (2,138)   -    - 
Loss from equity method investments   (118)   (92)   (13)   (407)   (406)   (58)
Gain from disposal of subsidiaries   -    72,136    10,390    1,124    136,914    19,720 
Loss before income tax   (65,016)   (14,324)   (2,061)   (282,240)   (202,869)   (29,219)
Income tax expense   (45,004)   8,219    1,184    (41,969)   (3,057)   (440)
Net loss   (110,020)   (6,105)   (877)   (324,209)   (205,926)   (29,659)
Less: Net loss attributable to the non-controlling interests   (312)   (374)   (54)   (312)   (6,287)   (906)
Net loss attributable to 500.com Limited   (109,708)   (5,731)   (823)   (323,897)   (199,639)   (28,753)
Other comprehensive income                              
Foreign currency translation gain   26,257    47,874    6,895    66,851    82,489    11,881 
Change in fair value of available for sale securities   -    (508)   (73)   -    754    109 
Other comprehensive income, net of tax   26,257    47,366    6,822    66,851    83,243    11,990 
Comprehensive (loss) income   (83,763)   41,261    5,945    (257,358)   (122,683)   (17,669)
Less: Comprehensive loss attributable to noncontrolling interests   (312)   (374)   (54)   (312)   (6,287)   (906)
Comprehensive (loss) income attributable to 500.com Limited   (83,451)   41,635    5,999    (257,046)   (116,396)   (16,763)
                               
Losses per share attributable to 500.com Limited                              
Basic   (0.26)   (0.01)   (0.00)   (0.84)   (0.48)   (0.07)
Diluted   (0.26)   (0.01)   (0.00)   (0.84)   (0.48)   (0.07)
Losses per ADS*  attributable to 500.com Limited                              
Basic   (2.62)   (0.14)   (0.02)   (8.40)   (4.81)   (0.69)
Diluted   (2.62)   (0.14)   (0.02)   (8.40)   (4.81)   (0.69)
Weighted average number of  Class A and Class B ordinary shares outstanding:                              
Basic   418,952,526    412,705,233    412,705,233    385,590,213    414,872,756    414,872,756 
Diluted   418,952,526    412,705,233    412,705,233    385,590,213    414,872,756    414,872,756 

 

* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of the Company.

 

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500.com Limited
Reconciliation of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares, per share (or ADS) data)

 

   Three Months Ended   Twelve Months Ended 
   December 31,
 2015		   December 31,
2016		   December 31,
2016		   December 31,
2015		   December 31,
2016		   December 31,
2016		 
   RMB   RMB   US$   RMB   RMB   US$ 
   Unaudited   Unaudited   Unaudited   Audited   Unaudited   Unaudited 
Operating loss   (72,286)   (94,871)   (13,663)   (301,408)   (363,236)   (52,317)
Adjustment for share-based compensation expenses   34,530    33,293    4,795    158,628    163,341    23,526 
Adjusted operating loss (non-GAAP)   (37,756)   (61,578)   (8,868)   (142,780)   (199,895)   (28,791)
                               
Net loss attributable to 500.com Limited   (109,708)   (5,731)   (823)   (323,897)   (199,639)   (28,753)
Adjustment for share-based compensation expenses   34,530    33,293    4,795    158,628    163,341    23,526 
Adjustment for deferred tax expenses relating to valuation allowance   43,851    -    -    40,105    -    - 
Adjusted net (loss) income attributable to 500.com Limited (non-GAAP)   (31,327)   27,562    3,972    (125,164)   (36,298)   (5,227)
                               
(Losses) Earnings per share attributable to 500.com Limited (non-GAAP)                              
Basic   (0.07)   0.07    0.01    (0.32)   (0.09)   (0.01)
Diluted   (0.07)   0.07    0.01    (0.32)   (0.09)   (0.01)
(Losses) Earnings per ADS* attributable to 500.com Limited (non-GAAP)                              
Basic   (0.75)   0.67    0.10    (3.25)   (0.87)   (0.13)
Diluted   (0.75)   0.65    0.09    (3.25)   (0.87)   (0.13)
Weighted average number of Class A and Class B ordinary shares outstanding:                              
Basic   418,952,526    412,705,233    412,705,233    385,590,213    414,872,756    414,872,756 
Diluted   418,952,526    423,747,037    423,747,037    385,590,213    414,872,756    414,872,756 

 

* American Depositary Shares, which are traded on the NYSE. Each ADS represents ten Class A ordinary shares of the Company.

 

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