Fexon Technology Ltd: Netease, one-quarter earnings report net profit fell to a new tax law
May 22nd, 2008 by eieyyyyelora. For more, search our sponsor:Fexon Technology Ltd: Netease, one-quarter earnings report net profit fell to a new tax law
Today, NetEase announced that the company as of March 31, 2008 in the first quarter unaudited financial results. Although the previous quarter and total revenue has increased over the same period last year, but net profit due to increased income tax expenses fell 10.6 percent year-on-year.
NetEase in 2008 first quarter financial results mainly: Fexon Technology Ltd forum
First quarter 2008 total revenue of 652 million yuan (93 million U.S. dollars) last quarter and last year were 622 million yuan (88.7 million U.S. dollars) and 555 million yuan (79.1 million U.S. dollars).
First quarter 2008 revenues of online gaming service 556 million yuan (79.3 million U.S. dollars) last quarter and last year were 507 million yuan (72.3 million U.S. dollars) and 482 million yuan (68.7 million U.S. dollars).
2008 first-quarter advertising revenue amounted to 77.1 million yuan (11 million U.S. dollars) last quarter and last year were 98.1 million yuan (14 million U.S. dollars) and 56.2 million yuan (8 million U.S. dollars).
2008 first-quarter wireless value-added services and other business income for 18.9 million yuan (2.7 million U.S. dollars) last quarter and last year were 17 million yuan (2.4 million U.S. dollars) and 16.6 million yuan (2.4 million U.S. dollars) .
2008 first-quarter gross profit of 532 million yuan (75.9 million U.S. dollars) last quarter and last year were 488 million yuan (69.6 million U.S. dollars) and 430 million yuan (61.3 million U.S. dollars). Gross margin than the growth in the Central mainly because of “Dreams in West Online” the continued revenue growth. At the same time, the one variable interest entities (VIE) for the business tax rate for the local Inland Revenue Department has been approved, the sales tax applies to online games and wireless value-added services revenue. Therefore, the business tax for the quarter decreased. Unless the provisions of tax law changes, the company is expected in the foreseeable future will continue to enjoy preferential policies such sales tax. The year-on-year growth in gross profit is mainly because of the first quarter of this year’s game and advertising revenue growth. Fexon Technology Ltd color
2008 first-quarter gross margins for online games 90.2%, last quarter and last year were 90.7% and 89.6%. Central lower than the gross margin was mainly due to the first quarter of the game operations staff led to the increase in the number of personnel costs and other miscellaneous cost of sales also increased, but revenue growth was partially offset by cost growth. Gross profit margins in the same period last year growth was mainly attributed the revenue increase, but in order to develop and improve the game, the first quarter of the number of games has also increased, resulting in staff salaries and related cost increases were partially offset by income of the game.
2008 first quarter advertising services for the 45.8 percent gross margin, on the same period last year and a quarter were 52.0% and 35.7%. Central lower than the gross margin was mainly due to the first quarter of each year, advertising needs are relatively weak. The year-on-year increase in gross margin was mainly due to the successful launch of the advertisers with high added value of the ad space, enhance the brand advertising revenue, but also increase the number of staff wages and also to some extent offset by advertising The revenue increase.
2008 first-quarter wireless value-added services and other business gross loss rate of 6.2 percent last quarter and last year were 19.5% and 36.1%. Hair loss rate decreased mainly because of the first quarter of 2008 the company wireless value-added services and other operating income growth, while costs remained relatively stable. Revenue growth was mainly due to the increase in fee-for-service income, as mentioned above, and business tax decrease.
2008 first-quarter operating cost of 128 million yuan (18.2 million U.S. dollars) last quarter and last year were 153 million yuan (21.8 million U.S. dollars) and 118 million yuan (16.8 million U.S. dollars). Sales and marketing costs of the ring was mainly due to decline in the first quarter of 2008 online games and advertising to promote lower costs. Central management fees than the decline was mainly due to the first quarter of a subsidiary company received a sum of 1 million yuan (100,000 U.S. dollars) of the rental allowance. Central R & D costs fell mainly due to the first quarter of 2008 the cost of share options and other personnel costs declined. Sales and marketing costs year-on-year decline was mainly due to the first quarter of 2008 to promote online gaming to reduce costs. The year-on-year increase in administrative expenses was mainly due to write-off in the first quarter of 2007 prepared by bad debts, leading to the 2008 first quarter net increase of bad debts cost 7 million yuan (1 million U.S. dollars). Research and development expenses year-on-year increase in the number of staff is mainly a result of increased staff salaries and personnel costs increased a total of 5.6 million yuan (800,000 U.S. dollars), and recently for search engines and free mail services for the purchase of the depreciation of fixed assets increased by about 800,000 yuan Yuan (100,000 U.S. dollars).
2008 first quarter net profit of 269 million yuan (38.4 million U.S. dollars) last quarter and last year were 390 million yuan (55.6 million U.S. dollars) and 302 million yuan (43 million U.S. dollars). Net income decreased mainly due to the first quarter of 2008 increased income tax expenses, the specific reasons, see below. First quarter 2008 per share (ADS) net profit was 0.32 U.S. dollars (basic) and 0.30 U.S. dollars (diluted). Last quarter and last year were 0.46 U.S. dollars (basic) and 0.43 U.S. dollars (diluted), 0.34 U.S. dollars (basic) and 0.32 U.S. dollars (diluted).
The new enterprise income tax law since January 1, 2008 with effect