Ninetowns' Corrections of Second Half and Full Year 2009 Financial Results
BEIJING, June 29 /PRNewswire-Asia/ -- Ninetowns Internet Technology Group Company Limited (Nasdaq: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, today reports certain corrections to its previously released second half and full year 2009 financial results.
1. Reasons for corrections
Certain corrections have been made to the second half and full year 2009 financial results in order to,
i. Reclassify amounts attributable to discontinued operations in 2008;
ii. Reclassify 2009 unrealized losses on investments in available for sale
securities from other comprehensive income to earnings.
2. Matters to be corrected
1) Second Half 2009 Financial Highlights
2) Full Year 2009 Financial Highlights
3) Second Half 2009 Financial Results
4) Full Year 2009 Financial Results
5) Condensed Consolidated Statements of Operations for six months ended
December 31, 2008, June 30, 2009 and December 31, 2009
6) Condensed Consolidated Statements of Operations for the years ended
December 31, 2008 and 2009
For each corrected item below, we have set forth the relevant item both before and after correction.
1) Second Half 2009 Financial Highlights
< Before correction >
-- Net income was RMB48,287 (US$7,074), as compared to a net loss of
RMB140.9 million (US$20.6 million) for the second half of 2008.
< After correction >
-- Net loss was RMB1.6 million (US$0.2 million), as compared to a net loss
of RMB140.9 million (US$20.6 million) for the second half of 2008.
< Before correction >
-- Both basic and diluted net income per ADS (each ADS represents one
ordinary share) were nil, compared to a basic and diluted net loss per
ADS of RMB4.02 (US$0.59) for the second half of 2008.
< After correction >
-- Both basic and diluted net loss per ADS (each ADS represents one
ordinary share) were RMB0.05 (US$0.01), compared to a basic and diluted
net loss per ADS of RMB4.02 (US$0.59) for the second half of 2008.
2) Full Year 2009 Financial Highlights
< Before correction >
-- Net income was RMB3.0 million (US$0.4 million), as compared to net loss
of RMB169.6 million (US$24.9 million) for 2008.
< After correction >
-- Net income was RMB1.3 million (US$0.2 million), as compared to net loss
of RMB169.6 million (US$24.9 million) for 2008.
< Before correction >
-- Both basic and diluted net income per ADS was RMB0.09 (US$0.01),
compared to basic and diluted net loss per ADS of RMB4.85 (US$0.71) for
2008.
< After correction >
-- Both basic and diluted net income per ADS was RMB0.04 (US$0.01),
compared to basic and diluted net loss per ADS of RMB4.85 (US$0.71) for
2008.
3) Second Half 2009 Financial Results
< Before correction >
Operating Expenses. For the second half of 2009, total operating expenses were RMB72.0 million (US$10.5 million), representing an increase of 8% from RMB66.7 million (US$9.8 million) in the second half of 2008.
< After correction >
Operating Expenses. For the second half of 2009, total operating expenses were RMB72.0 million (US$10.5 million), representing an increase of 20% from RMB60.1 million (US$8.8 million) in the second half of 2008.
< Before correction >
General and administrative ("G&A") expenses were RMB34.5 million (US$5.1 million) for the second half of 2009, representing a decrease of 27% from RMB47.5 million (US$7.0 million) for the same period of 2008. This decrease was primarily due to a reduction in legal and professional fees and the implementation of our "cost reduction" program in the second half of 2009.
< After correction >
General and administrative ("G&A") expenses were RMB34.5 million (US$5.1 million) for the second half of 2009, representing a decrease of 16% from RMB40.9 million (US$6.0 million) for the same period of 2008. This decrease was primarily due to a reduction in legal and professional fees and the implementation of our "cost reduction" program in the second half of 2009.
< Before correction >
Operating Loss. As a result, operating loss for the second half of 2009 was RMB40.8 million (US$6.0 million), compared to an operating loss of RMB15.5 million (US$2.3 million) for the second half of 2008.
< After correction >
Operating Loss. As a result, operating loss for the second half of 2009 was RMB40.8 million (US$6.0 million), compared to an operating loss of RMB9.0 million (US$1.3 million) for the second half of 2008.
< Before correction >
Other Income. For the second half of 2009, other income, primarily including interest income, gains on sales of short-term investments and changes in fair value of marketable options, amounted to RMB45.0 million (US$6.6 million), as compared to other income of RMB8.8 million (US$1.3 million) for the same period in 2008.
< After correction >
Other Income. For the second half of 2009, other income, primarily including interest income, gains on sales of short-term investments and changes in fair value of marketable options, amounted to RMB43.3 million (US$6.3 million), as compared to other income of RMB8.8 million (US$1.3 million) for the same period in 2008.
< Before correction >
Income from continuing operations before income tax. For the second half of 2009, income from continuing operations before income tax was RMB4.1 million (US$0.6 million), compared to a net loss of RMB6.7 million (US$1.0 million) for the same period in 2008.
< After correction >
Income from continuing operations before income tax. For the second half of 2009, income from continuing operations before income tax was RMB2.5 million (US$0.4 million), compared to a net loss of RMB0.2 million (US$0.03 million) for the same period in 2008.
< Before correction >
Income tax expense. Income tax expense included a provision for withholding tax of RMB4.1 million (US$0.6 million) for the second half of 2009 on dividends paid by our Chinese subsidiaries to our overseas holding companies.
< After correction >
Income tax expense. Income tax expense included a provision for withholding tax of RMB4.8 million (US$0.7 million) for the second half of 2009 on dividends paid by our Chinese subsidiaries to our overseas holding companies.
< Before correction >
Net Income. For the second half of 2009, net income was RMB48,287 (US$7,074), as compared to a net loss of RMB140.9 million (US$20.6 million) for the second half of 2008. Both basic and diluted net income per ADS for the second half of 2009 were nil, compared to basic and diluted net loss per ADS of RMB4.02 (US$0.59) for the same period in 2008.
< After correction >
Net loss. For the second half of 2009, net loss was RMB1.6 million (US$0.2 million), as compared to a net loss of RMB140.9 million (US$20.6 million) for the second half of 2008. Both basic and diluted net loss per ADS for the second half of 2009 were RMB0.05 (US$0.01), compared to basic and diluted net loss per ADS of RMB4.02 (US$0.59) for the same period in 2008.
4) Full Year 2009 Financial Results
< Before correction >
Operating Expenses. For fiscal year 2009, total operating expenses decreased by 6% to RMB123.9 million (US$18.2 million) from RMB132.0 million (US$19.4 million) in fiscal year 2008.
< After correction >
Operating Expenses. For fiscal year 2009, total operating expenses increased by 4% to RMB123.9 million (US$18.2 million) from RMB118.9 million (US$17.4 million) in fiscal year 2008.
< Before correction >
G&A expenses decreased by 29% to RMB62.9 million (US$9.2 million) in fiscal year 2009 from RMB88.6 million (US$13.0 million) in fiscal year 2008. This decrease was primarily due to a reduction in legal and professional fees and the implementation of our "cost reduction" program in 2009.
< After correction >
G&A expenses decreased by 17% to RMB62.9 million (US$9.2 million) in fiscal year 2009 from RMB75.5 million (US$11.1 million) in fiscal year 2008. This decrease was primarily due to a reduction in legal and professional fees and the implementation of our "cost reduction" program in 2009.
< Before correction >
Operating Loss. As a result, operating loss for the full year 2009 was RMB58.7 million (US$8.6 million), compared to an operating loss of RMB40.0 million (US$5.9 million) for the full year 2008.
< After correction >
Operating Loss. As a result, operating loss for the full year 2009 was RMB58.7 million (US$8.6 million), compared to an operating loss of RMB26.9 million (US$3.9 million) for the full year 2008.
< Before correction >
Other Income. For the full year 2009, other income, primarily including interest income, gains on sales of short-term investments and changes in fair value of marketable options, amounted to RMB73.1 million (US$10.7 million), as compared to other income of RMB19.4 million (US$2.8 million) for the full year 2008.
< After correction >
Other Income. For the full year 2009, other income, primarily including interest income, gains on sales of short-term investments and changes in fair value of marketable options, amounted to RMB71.4 million (US$10.5 million), as compared to other income of RMB19.4 million (US$2.8 million) for the full year 2008.
< Before correction >
Income from continuing operations before income tax. For the full year 2009, income from continuing operations before income tax was RMB14.4 million (US$2.1 million), compared to a net loss of RMB20.6 million (US$3.0 million) for the full year 2008.
< After correction >
Income from continuing operations before income tax. For the full year 2009, income from continuing operations before income tax was RMB12.7 million (US$1.9 million), compared to a net loss of RMB7.5 million (US$1.1 million) for the full year 2008.
< Before correction >
Income tax expense. Income tax expense included a provision for withholding tax of RMB4.1 million (US$0.6 million) for the full year 2009 on dividends paid by our Chinese subsidiaries to our overseas holding companies.
< After correction >
Income tax expense. Income tax expense included a provision for withholding tax of RMB4.8 million (US$0.7 million) for the full year 2009 on dividends paid by our Chinese subsidiaries to our overseas holding companies.
< Before correction >
Net Income. For the full year 2009, net income was RMB3.0 million (US$0.4 million), compared to net loss of RMB169.6 million (US$24.9 million) for the full year 2008. Both basic and diluted net income per ADS for the full year 2009 was RMB0.09 (US$0.01), compared to basic and diluted net loss per ADS of RMB4.85 (US$0.71) for the full year 2008.
< After correction >
Net Income. For the full year 2009, net income was RMB1.3 million (US$0.2 million), compared to net loss of RMB169.6 million (US$24.9 million) for the full year 2008. Both basic and diluted net income per ADS for the full year 2009 was RMB0.04 (US$0.01), compared to basic and diluted net loss per ADS of RMB4.85 (US$0.71) for the full year 2008.
5) Condensed Consolidated Statements of Operations for six months ended
December 31, 2008, June 30, 2009 and December 31, 2009
< Before correction >
NINETOWNS INTERNET TECHNOLOGY GROUP COMPANY LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 2008, JUNE 30, 2009 AND DECEMBER 31, 2009
(In thousands, except share-related data)
For the six months ended
Dec. 31, Dec. 31, Jun. 30,
2008 2008 2009
RMB US$ RMB
(unaudited) (unaudited (unaudited)
Total net revenues 54,687 8,016 42,683
Total cost of revenues (3,526) (517) (8,665)
Gross profit 51,161 7,499 34,018
Selling and marketing
expenses (8,270) (1,212) (8,741)
General and administrative
expenses (47,504) (6,964) (28,379)
Research and development
expenses (8,174) (1,199) (9,989)
Allowance for doubtful
accounts, net (2,749) (403) (4,806)
Loss from operations (15,536) (2,279) (17,897)
Interest income 3,866 567 2,874
Gain on sales of short-term
investments 2,456 360 5,212
Change in fair value of
marketable options -- -- 18,907
Gain from disposal of
investment under cost
method 2,187 321 --
Others 296 43 1,138
(Loss) income from continuing
operations before income tax (6,731) (988) 10,234
Income tax expense (153) (22) (32)
(Loss) income from continuing
operations (6,884) (1,010) 10,202
Loss from discontinued
operations (Net of income
tax) (133,972) (19,637) (7,235)
Net (loss) income (140,856) (20,647) 2,967
(Loss) income from continuing
operations per share:
Basic (RMB0.20) (US$0.03) RMB0.29
Diluted (RMB0.20) (US$0.03) RMB0.29
Loss from discontinued
operations per share:
Basic (RMB3.82) (US$0.56) (RMB0.21)
Diluted (RMB3.82) (US$0.56) (RMB0.21)
Net (loss) income per share:
Basic (RMB4.02) (US$0.59) RMB0.08
Diluted (RMB4.02) (US$0.59) RMB0.08
Weighted average shares used
in computation:
Basic 34,997,505 34,997,505 35,083,975
Diluted 34,997,505 34,997,505 35,083,975
Note: Certain reclassifications of previous reported amounts have been
made to conform to the current period presentation. These
reclassifications are primarily due to the presentation of
discontinued B2B operations.
For the six months ended
Jun. 30, Dec. 31, Dec. 31,
2009 2009 2009
US$ RMB US$
(unaudited) (unaudited) (unaudited)
Total net revenues 6,249 51,071 7,482
Total cost of revenues (1,269) (19,933) (2,920)
Gross profit 4,980 31,138 4,562
Selling and marketing
expenses (1,280) (8,628) (1,264)
General and administrative
expenses (4,154) (34,498) (5,054)
Research and development
expenses (1,462) (7,384) (1,082)
Allowance for doubtful
accounts, net (704) (21,453) (3,143)
Loss from operations (2,620) (40,825) (5,981)
Interest income 421 1,406 206
Gain on sales of short-term
investments 763 31,945 4,680
Change in fair value of
marketable options 2,768 8,777 1,286
Gain from disposal of
investment under cost
method -- -- --
Others 166 2,836 415
(Loss) income from continuing
operations before income tax 1,498 4,139 606
Income tax expense (5) (4,068) (596)
(Loss) income from continuing
operations 1,493 71 10
Loss from discontinued
operations (Net of income
tax) (1,058) (23) (3)
Net (loss) income 435 48 7
(Loss) income from continuing
operations per share:
Basic US$0.04 RMB-- US$--
Diluted US$0.04 RMB-- US$--
Loss from discontinued
operations per share:
Basic (US$0.03) RMB-- US$--
Diluted (US$0.03) RMB-- US$--
Net (loss) income per share:
Basic US$0.01 RMB-- US$--
Diluted US$0.01 RMB-- US$--
Weighted average shares used
in computation:
Basic 35,083,975 35,117,280 35,117,280
Diluted 35,083,975 35,117,280 35,117,280
Note: Certain reclassifications of previous reported amounts have been
made to conform to the current period presentation. These
reclassifications are primarily due to the presentation of
discontinued B2B operations.
< After correction >
NINETOWNS INTERNET TECHNOLOGY GROUP COMPANY LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 2008, JUNE 30, 2009 AND DECEMBER 31, 2009
(In thousands, except share-related data)
For the six months ended
Dec. 31, Dec. 31, Jun. 30,
2008 2008 2009
RMB US$ RMB
(unaudited) (unaudited) (unaudited)
Total net revenues 54,687 8,016 42,683
Total cost of revenues (3,526) (517) (8,665)
Gross profit 51,161 7,499 34,018
Selling and marketing
expenses (8,270) (1,212) (8,741)
General and administrative
expenses (40,942) (6,002) (28,379)
Research and development
expenses (8,174) (1,199) (9,989)
Allowance for doubtful
accounts, net (2,749) (403) (4,806)
Loss from operations (8,974) (1,317) (17,897)
Interest income 3,866 567 2,874
Gain on sales of short-term
investments 2,456 360 5,212
Change in fair value of
marketable options -- -- 18,907
Gain from disposal of
investment under
cost method 2,187 321 --
Others 296 43 1,138
(Loss) income from continuing
operations before income
tax (169) (26) 10,234
Income tax expense (153) (22) (32)
(Loss) income from continuing
operations (322) (48) 10,202
Loss from discontinued
operations (Net of income
tax and non-controlling
interest) (140,534) (20,599) (7,235)
Net (loss) income (140,856) (20,647) 2,967
(Loss) income from continuing
operations per share:
Basic (RMB0.01) (US$--) RMB0.29
Diluted (RMB0.01) (US$--) RMB0.29
Loss from discontinued
operations per share:
Basic (RMB4.01) (US$0.59) (RMB0.21)
Diluted (RMB4.01) (US$0.59) (RMB0.21)
Net (loss) income per
share:
Basic (RMB4.02) (US$0.59) RMB0.08
Diluted (RMB4.02) (US$0.59) RMB0.08
Weighted average shares used
in computation:
Basic 34,997,505 34,997,505 35,083,975
Diluted 34,997,505 34,997,505 35,083,975
Note: Certain reclassifications of previous reported amounts have been
made to conform to the current period presentation. These
reclassifications are primarily due to the presentation of
discontinued B2B operations.
For the six months ended
Jun. 30, Dec. 31, Dec. 31,
2009 2009 2009
US$ RMB US$
(unaudited) (unaudited) (unaudited)
Total net revenues 6,249 51,071 7,482
Total cost of revenues (1,269) (19,933) (2,920)
Gross profit 4,980 31,138 4,562
Selling and marketing
expenses (1,280) (8,628) (1,264)
General and administrative
expenses (4,154) (34,498) (5,054)
Research and development
expenses (1,462) (7,384) (1,082)
Allowance for doubtful
accounts, net (704) (21,453) (3,143)
Loss from operations (2,620) (40,825) (5,981)
Interest income 421 1,406 206
Gain on sales of short-term
investments 763 30,262 4,433
Change in fair value of
marketable options 2,768 8,777 1,286
Gain from disposal of
investment under
cost method -- -- --
Others 166 2,836 415
(Loss) income from continuing
operations before income tax 1,498 2,456 359
Income tax expense (5) (4,068) (596)
(Loss) income from continuing
operations 1,493 (1,612) (237)
Loss from discontinued
operations (Net of income
tax and non-controlling
interest) (1,058) (23) (3)
Net (loss) income 435 (1,635) (240)
(Loss) income from continuing
operations per share:
Basic US$0.04 (RMB0.05) (US$0.01)
Diluted US$0.04 (RMB0.05) (US$0.01)
Loss from discontinued
operations per share:
Basic (US$0.03) RMB-- US$--
Diluted (US$0.03) RMB-- US$--
Net (loss) income per share:
Basic US$0.01 (RMB0.05) (US$0.01)
Diluted US$0.01 (RMB0.05) (US$0.01)
Weighted average shares used
in computation:
Basic 35,083,975 35,117,280 35,117,280
Diluted 35,083,975 35,117,280 35,117,280
Note: Certain reclassifications of previous reported amounts have been
made to conform to the current period presentation. These
reclassifications are primarily due to the presentation of
discontinued B2B operations.
6) Condensed Consolidated Statements of Operations for the years ended
December 31, 2008 and 2009
< Before correction >
NINETOWNS INTERNET TECHNOLOGY GROUP COMPANY LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2009
(In thousands, except share-related data)
For the years ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2008 2008 2009 2009
RMB US$ RMB US$
(unaudited) (unaudited)(unaudited)(unaudited)
Total net revenues 104,517 15,319 93,754 13,735
Total cost of revenues (12,499) (1,832) (28,598) (4,190)
Gross profit 92,018 13,487 65,156 9,545
Selling and marketing expenses (21,942) (3,216) (17,369) (2,546)
General and administrative
expenses (88,647) (12,993) (62,877) (9,212)
Research and development
expenses (18,566) (2,722) (17,373) (2,545)
Allowance for doubtful
accounts, net (2,881) (422) (26,259) (3,847)
Loss from operations (40,018) (5,866) (58,722) (8,605)
Interest income 7,026 1,030 4,280 627
Gain on sales of short term
investments 9,866 1,446 37,157 5,443
Change in fair value of
marketable options -- -- 27,684 4,056
Gain from disposal of
investment under cost method 2,187 321 -- --
Others 358 52 3,974 582
(Loss) income from continuing
operations before income
tax (20,581) (3,017) 14,373 2,103
Income tax expense (836) (123) (4,100) (601)
(Loss) income from continuing
operations (21,417) (3,140) 10,273 1,502
Loss from discontinued
operations (Net of income
tax) (148,195) (21,722) (7,258) (1,063)
Net (loss) income (169,612) (24,861) 3,015 439
(Loss) income from continuing
operations per share:
Basic (RMB0.61) (US$0.09) RMB0.29 US$0.04
Diluted (RMB0.61) (US$0.09) RMB0.29 US$0.04
Loss from discontinued
operations per share:
Basic (RMB4.24) (US$0.62) (RMB0.20) (US$0.03)
Diluted (RMB4.24) (US$0.62) (RMB0.20) (US$0.03)
Net (loss) income per share:
Basic (RMB4.85) (US$0.71) RMB0.09 US$0.01
Diluted (RMB4.85) (US$0.71) RMB0.09 US$0.01
Weighted average shares used
in computation:
Basic 34,997,505 34,997,505 35,100,194 35,100,194
Diluted 34,997,505 34,997,505 35,100,194 35,100,194
Note: Certain reclassifications of previous reported amounts have been
made to conform to the current period presentation. These
reclassifications are primarily due to the presentation of
discontinued B2B operations.
< After correction >
NINETOWNS INTERNET TECHNOLOGY GROUP COMPANY LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2009
(In thousands, except share-related data)
For the years ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2008 2008 2009 2009
RMB US$ RMB US$
(unaudited) (unaudited) (unaudited) (unaudited)
Total net revenues 104,517 15,319 93,754 13,735
Total cost of revenues (12,499) (1,832) (28,598) (4,190)
Gross profit 92,018 13,487 65,156 9,545
Selling and marketing
expenses (21,942) (3,216) (17,369) (2,546)
General and
administrative
expenses (75,523) (11,069) (62,877) (9,212)
Research and
development expenses (18,566) (2,722) (17,373) (2,545)
Allowance for doubtful
accounts, net (2,881) (422) (26,259) (3,847)
Loss from operations (26,894) (3,942) (58,722) (8,605)
Interest income 7,026 1,030 4,280 627
Gain on sales of
short term
investments 9,866 1,446 35,474 5,196
Change in fair value
of marketable
options -- -- 27,684 4,056
Gain from disposal of
investment under
cost method 2,187 321 -- --
Others 358 52 3,974 582
(Loss) income from
continuing operations
before income tax (7,457) (1,093) 12,690 1,856
Income tax expense (836) (123) (4,100) (601)
(Loss) income from
continuing operations (8,293) (1,216) 8,590 1,255
Loss from discontinued
operations (Net of
income tax and
non-controlling
interest) (161,319) (23,645) (7,258) (1,063)
Net (loss) income (169,612) (24,861) 1,332 192
(Loss) income from
continuing operations
per share:
Basic (RMB0.24) (US$0.03) RMB0.25 US$0.04
Diluted (RMB0.24) (US$0.03) RMB0.25 US$0.04
Loss from discontinued
operations per share:
Basic (RMB4.61) (US$0.68) (RMB0.21) (US$0.03)
Diluted (RMB4.61) (US$0.68) (RMB0.21) (US$0.03)
Net (loss) income per
share:
Basic (RMB4.85) (US$0.71) RMB0.04 US$0.01
Diluted (RMB4.85) (US$0.71) RMB0.04 US$0.01
Weighted average shares
used in computation:
Basic 34,997,505 34,997,505 35,100,194 35,100,194
Diluted 34,997,505 34,997,505 35,100,194 35,100,194
Note: Certain reclassifications of previous reported amounts have been
made to conform to the current period presentation. These
reclassifications are primarily due to the presentation of
discontinued B2B operations.
About Ninetowns Internet Technology Group Company Limited
Ninetowns (Nasdaq: NINE) is a leading provider of online solutions for international trade, with its key services in automating import/export e- filing. Ninetowns has been listed on the NASDAQ Stock Exchange since December 2004 under the symbol "NINE." More information can be found at http://www.ninetowns.com/english .
For more information, please contact:
Helen Wu
Investor Relations
Ninetowns Internet Technology Group Company Limited
Tel: +86-10-6589-9287
Email: [email protected]
Investor Relations (US):
Mahmoud Siddig, Director
Taylor Rafferty
Tel: +1-212-889-4350
Email: [email protected]
Investor Relations (HK):
Ruby Yim, Managing Director
Taylor Rafferty
Tel: +852-3196-3712
Email: [email protected]
SOURCE Ninetowns Internet Technology Group Company Limited
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