SYSWIN Inc. Announces Third Quarter and First Nine Months 2012
Unaudited Financial Results
BEIJING, Dec. 5, 2012 /PRNewswire/ -- SYSWIN Inc.
(NYSE: SYSW; "SYSWIN" or the "Company"), a leading primary real
estate service provider in China,
today announced its unaudited financial results for the third
quarter and the first nine months of 2012 ended September 30, 2012.
THIRD QUARTER 2012 FINANCIAL & OPERATION SUMMARY:
- Aggregate gross floor area ("GFA") of properties sold increased
20.9% from 3Q2011 to 1,733,000 square meters and aggregate
transaction value of properties sold increased 29.1% from 3Q2011 to
RMB21.2 billion
- Net revenue increased 9.0% from 3Q2011 to RMB167.5 million
- Gross profit increased 19.5% from 3Q2011 to RMB80.6 million
- Income from operations increased 372.7% from 3Q2011 to
RMB23.5 million
- Non-GAAP income from operations increased 436.9% from 3Q2011 to
RMB30.3 million
- Net income was RMB14.3 million,
compared to net loss of RMB46
thousand in 3Q2011
- Non-GAAP net income increased 4,023.4% from 3Q2011 to
RMB19.4 million
- Basic and diluted earnings per ADS ("EPADS", with 1 ADS
representing 4 ordinary shares) was US$0.05, compared to nil in 3Q2011
- Non-GAAP EPADS was US$0.06,
compared to nil in 3Q2011
FIRST NINE MONTHS 2012 FINANCIAL
& OPERATION SUMMARY:
- Aggregate GFA of properties sold increased 23.0% year over year
to 4,485,000 square meters and aggregate transaction value of
properties sold increased 20.4% year over year to RMB49.8 billion
- Net revenue decreased 19.3% year over year to RMB377.5 million
- Gross profit decreased 32.4% year over year to RMB166.7 million
- Loss from operations was RMB0.2
million, compared to income from operations of RMB76.6 million in the first nine months of
2011
- Non-GAAP income from operations decreased 89.8% year over year
to RMB8.0 million
- Net loss was RMB2.5 million,
compared to net income of RMB45.7
million in the first nine months of 2011
- Non-GAAP net income decreased 92.2% year over year to
RMB3.6 million
- Basic and diluted loss per ADS was US$0.01, compared to EPADS of US$0.15 in the first nine months of 2011
- Non-GAAP basic and diluted EPADS was US$0.01, compared to US$0.15 in the first nine months of 2011
BUSINESS HIGHLIGHTS:
|
Three months ended September 30
|
Nine months ended September 30
|
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
Number of cities
entered
|
28
|
26
|
2
|
28
|
26
|
2
|
Aggregate GFA of
properties sold (in thousands of square meters)
|
1,733
|
1,433
|
20.9%
|
4,485
|
3,645
|
23.0%
|
Average selling price
per square meters (in RMB)
|
12,223
|
11,448
|
6.8%
|
11,114
|
11,356
|
-2.1%
|
Aggregate transaction
value (in million of RMB)
|
21,182
|
16,405
|
29.1%
|
49,845
|
41,391
|
20.4%
|
Overall commission rates
(%)
|
0.8
|
0.8
|
--
|
0.7
|
1.1
|
-0.4pp
|
Effective base
commission rates (%)
|
0.7
|
0.8
|
-0.1pp
|
0.7
|
0.8
|
-0.1pp
|
Number of projects under
sales
|
171
|
135
|
36
|
219
|
161
|
58
|
|
Note: pp represents
percentage points.
|
Commenting on SYSWIN's results for its third quarter, CEO and
Director Mr. Liangsheng Chen said,
"I'm glad to report that we finished the third quarter with revenue
exceeding our guidance, driven by our stable business growth in
Beijing, Hangzhou, Nanjing and Dalian. In comparing with the same period last
year, SYSWIN's third quarter results demonstrate that we're making
progress in an uncertain industry environment. Our total net
revenue increased 9.0% while income from operations increased
372.7% year-over-year with 171 projects under sales compared with
135 projects during the same period last year, our focus on
optimizing project profitability and prudent cost management
continues to be a determining factor to our profitability
improvement amid current market conditions."
Mr. Chen continued, "We observed a slight improvement in the
overall real estate services sector in the first half of the third
quarter, but visibility remains limited, as there were no
significant policy changes made from the 18th National Congress of
the Communist Party of China. We expect price levels to remain
generally flat, with some cities showing modest sequential growth
for the remaining 2012. However, we remain confident that our
strong brand and strong relationship with key property developers
will set us apart and our disciplined operational approach will
continue contributing to the sustainability of our business."
THIRD QUARTER & FIRST NINE MONTHS
2012 FINANCIAL REVIEW:
Net Revenue
Net revenue in 3Q2012 increased 9.0% from 3Q2011 to RMB167.5 million. Net revenue in the first nine
months of 2012 decreased 19.3% year over year to RMB377.5 million.
Real Estate Sales Agency Services
Net revenue from real estate sales agency services for 3Q2012
increased 15.8% from 3Q2011 to RMB159.3
million, due to an increase in aggregate transaction value.
Net revenue from real estate agency services for the first nine
months of 2012 decreased 17.5% from the same period in 2011 to
RMB361.7 million, primarily due to a
decrease in bonus commissions.
- The aggregate GFA of properties sold in 3Q2012 increased 20.9%
from 3Q2011 to 1,733,000 square meters. The increase was primarily
due to a rise in GFA of properties sold in the Beijing region, Dalian, and Shanxi. The aggregate GFA of properties sold
in the first nine months of 2012 increased 23.0% from the same
period in 2011 to 4,485 square meters. The increase primarily
reflected a rise in GFA of properties sold in the Beijing region, Shanxi, and Chengdu.
- Aggregate transaction value in 3Q2012 was RMB21.2 billion, an increase of 29.1% from
3Q2011. The increase in aggregate transaction value was primarily
driven by improved sales in the Beijing region, Dalian, Hangzhou and Nanjing. Aggregate transaction value in the
first nine months of 2012 was RMB49.8
billion, an increase of 20.4% from the same period in 2011.
The increase in aggregate transaction value was primarily driven by
the improved sales in the Beijing
region, Nanjing, and Shanxi.
- Average selling price per square meter of the projects to which
we provided sales agency services was RMB12,223 in 3Q2012, compared to RMB11,448 in 3Q2011. The increase was primarily
driven by the rise in transaction value from the Beijing region, where property prices are
generally higher than other regions. Average selling price per
square meter of the projects to which we provided sales agency
services was RMB11,114 in the first
nine months of 2012, compared to RMB11,356 in the first nine months of 2011. The
slight decrease was primarily due to the increased sales of social
housing projects during 1Q2012, which generally had lower selling
prices.
- Overall commission rate in 3Q2012 was 0.8%, the same as in
3Q2011. Overall commission rates in the first nine months of 2012
were 0.7%, compared to 1.1% in the first nine months of 2011 due to
the decrease in bonus commissions.
- As a percentage of net revenue, bonus commissions recognized in
3Q2012 and the first nine months of 2012 were negligible, compared
to 7.8% in 3Q2011 and 22.3% in the first nine months of 2011. The
significant decrease in bonus commissions was a result of the
unfavorable market environment, where developers were reluctant to
pay bonus commissions to real estate sales agencies.
- Effective base commission rate was 0.7% in 3Q2012, compared to
0.8% in 3Q2011. Effective base commission rate was 0.7% in the
first nine months of 2012, compared to 0.8% in the first nine
months of 2011.
Real estate consultancy services
Net revenue from real estate consultancy services in 3Q2012
decreased 49.1% from 3Q2011 to RMB8.2
million, accounting for 4.9% of our total net revenue in
3Q2012. Net revenue from real estate consultancy services in the
first nine months of 2012 decreased 46.0% year over year to
RMB15.9 million, accounting for 4.2%
of total net revenue in the first nine months of 2012. These
decreases were mainly due to the Chinese government's measures to
cool down the overheating real estate market.
Gross Profit and Gross Margin
Gross profit in 3Q2012 increased 19.5% from 3Q2011 to
RMB80.6 million. Gross profit in the
first nine months of 2012 decreased 32.4% year over year to
RMB166.7 million.
Cost of revenues in 3Q2012 increased 0.8% from 3Q2011 to
RMB86.9 million, primarily due to our
increased sales. Cost of revenues decreased 4.7% in the first nine
months of 2012 from the same period in 2011 to RMB210.8 million, primarily due to the Company's
ongoing cost control measures.
Gross margin was 48.1% in 3Q2012, compared to 43.9% in 3Q2011.
The improvement was attributable to the Company's prudent cost
management and the increase in transaction value. Gross margin was
44.2% in the first nine months of 2012 compared to 52.7% in the
first nine months of 2011 due to the decrease in net revenue.
Operating Expenses
Operating expenses including selling, marketing and
administrative expenses in 3Q2012 decreased 10.6% from 3Q2011 to
RMB57.4 million. The decrease was
primarily attributable to a decrease in staff cost as a result of
the Company's cost control efforts. Operating expenses decreased
3.5% in the first nine months of 2012 year over year to
RMB168.1 million, due to the decrease
of market promotion expenses and business travelling expenses.
Income/Loss from Operations and Operating
Margin
Income from operations in 3Q2012 increased 372.7% from 3Q2011 to
RMB23.5 million. Loss from operations
in the first nine months of 2012 was RMB0.2
million, compared to income from operations of RMB76.6 million in the first nine months of
2011.
Non-GAAP income from operations in 3Q2012 increased 436.9% from
3Q2011 to RMB30.3 million. Non-GAAP
income from operations in the first nine months of 2012 decreased
89.8% from the same period in 2011 to RMB8.0
million.
Operating margin in 3Q2012 increased to 14.0% from 3.2% in
3Q2011. Operating margin in the first nine months of 2012 was
-0.1%, compared to 16.4% in the first nine months of 2011.
Net Income/Loss and Earnings/Loss per ADS
Net income in 3Q2012 was RMB14.3
million, compared to net loss of RMB46 thousand in 3Q2011. Net loss in the first
nine months of 2012 was RMB2.5
million, compared to net income of RMB45.7 million in the first nine months of
2011.
Non-GAAP net income in 3Q2012 increased 4,023.4% from 3Q2011 to
RMB19.4 million. Non-GAAP net income
in the first nine months of 2012 decreased 92.2% year over year to
RMB3.6 million.
Basic and diluted EPADS was US$0.05 in 3Q2012, compared to nil in 3Q2011.
Basic and diluted loss per ADS was US$0.01 in the first nine months of 2012,
compared to basic and diluted EPADS of US$0.15 in the first nine months of 2011.
Non-GAAP basic and diluted EPADS was US$0.06 in 3Q2012, compared to nil in 3Q2011.
Non-GAAP basic and diluted EPADS was US$0.01 in the first nine months of 2012,
compared to US$0.15 in the first nine
months of 2011.
Cash and Cash Flow
As of September 30, 2012, the
total balance of cash and cash equivalents was RMB448.6 million.
Net cash provided by operating activities in 3Q2012 was
RMB46.3 million, compared to
RMB31.2 million in 3Q2011.
Net cash used in investing activities in 3Q2012 was RMB29.4 million, compared to RMB13.9 million in 3Q2011.
There were no cash flows from financing activities in 3Q2012,
compared to cash used in financing activities of RMB2.7 million in 3Q2011.
Net cash provided by operating activities in the first nine
months of 2012 was RMB22.3 million,
compared to net cash used in operating activities of RMB136.6 million in the first nine months of
2011.
Net cash used in investing activities in the first nine months
of 2012 was RMB40.5 million, compared
to RMB30.8 million in the first nine
months of 2011.
Net cash used in financing activities in the first nine months
of 2012 was RMB12.2 million, compared
to RMB4.0 million in the first nine
months of 2011.
FOURTH QUARTER 2012 GUIDANCE
SYSWIN expects net revenue in the fourth quarter of 2012 to be
in the range of RMB123 million to RMB137
million, representing a decrease of 3.0% to an increase of
8.1% year over year. This forecast reflects the Company's current
and preliminary view, which is subject to change.
SENIOR MANAGEMENT'SSHARE PURCHASE PROGRAM UPDATE
On March 19, 2012, the Board of
Directors approved the adoption by Mr. Liangsheng Chen of a share purchase program
pursuant to which Mr. Chen may purchase up to US$2 million of the Company's ADS over the course
of 12 months on the open market, in negotiated transactions off the
market, in block trades or other legally permissible ways. As of
September 30, 2012, Mr. Chen had
purchased 753,657 ADS, for US$1,011,013.
'GOING PRIVATE' PROPOSAL UPDATE
On September 7, 2012, SYSWIN
announced that its Board of Directors had received a preliminary
non-binding proposal letter from Mr. Liangsheng Chen, Chief Executive Officer,
President and a director of SYSWIN, to acquire all of the
outstanding shares of the Company not currently owned by him and
his affiliates in a going private transaction for US$0.50 per ordinary share and US$2.00 per ADS in cash.
The Company's Board of Directors has formed a special committee
of independent directors (the "Special Committee") to consider Mr.
Chen's proposal. No decisions have been made by the Special
Committee with respect to the Company's response to Mr. Chen's
proposal. No assurance can be given that any definitive offer will
be made, that any agreement will be executed or that this or any
transaction will be approved or consummated. The Company does not
undertake any obligation to provide any updates with respect to
this or any other transaction, except as required under applicable
law.
CONFERENCE CALL DETAILS
Mr. Liangsheng Chen,
CEO/Director, and Mr. Ray Han, CFO
of SYSWIN will be hosting a conference call on December 6, 2012 at 8:00
am ET. To participate on the conference call, please dial
the following numbers:
U.S. (Toll
free)
|
+1-855-500-8701
|
Hong Kong (Toll
free)
|
800-903-737
|
China, Domestic
(Toll)
|
400-120-0654
|
Other international
locations (Toll)
|
+65-6723-9385
|
An operator will answer your call and please use "SYSWIN" as the
verbal passcode to access the call.
Replays of the conference call will be available until
December 13, 2012 by dialing the
following numbers:
Toll free:
|
|
U.S.
|
+1-855-452-5696
|
Hong Kong
|
800-963-117
|
China
|
400-120-0932 /
800-870-0205
|
Other international
locations
|
+61-2-8199-0299
|
Passcode
|
68450173
|
A live webcast can also be accessed through the investor
relations section of the Company's website at
http://ir.syswin.com.
CONTACT:
Wen Fan
Investor Relations
Email: ir@syswin.com
Tel: +86-10-8472-8783
ABOUT SYSWIN
The Company began focusing on providing primary real estate
services since 2004 and believes it is a leading primary real
estate service provider in China.
The Company currently has operations in 28 cities throughout China.
The Company primarily provides real estate sales agency services to
property developers relating to new residential properties.
Capitalizing on the experience and capabilities gained in
Beijing, the Company focuses on
providing tailored services to its key clients in a number of
markets and has been successful in generating repeat business and
increasing business volume. Of China's top 30 developers (including
those that do not use sales agency services), 15 are or have
previously been clients of the Company. Clients of the Company
include some of the most well-recognized national developers in
China, including China Vanke, Poly Real Estate, CR Land, Agile
Group and Guangzhou R&F Properties.
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS:
This press release contains forward-looking statements,
including statements regarding the quarterly earnings forecast,
anticipated performance, general business outlook and projected
results of operations. These statements are made under the "safe
harbor" provisions of Section 21E of the Securities Exchange Act of
1934, as amended. SYSWIN has based these forward-looking statements
largely on its current expectations and projections about future
events and financial trends that it believes may affect its
financial condition, results of operations, business strategy and
financial needs. SYSWIN may also make written or oral
forward-looking statements in its reports filed or furnished with
the U.S. Securities and Exchange Commission (the "SEC"), in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about beliefs
and expectations, are forward-looking statements and are subject to
change, and such change may be material and may have a material
adverse effect on SYSWIN's financial condition and results of
operations for one or more periods. Forward-looking statements
involve inherent risks and uncertainties. All forward-looking
statements are subject to various risks and uncertainties,
including but not limited to regulatory developments, deteriorating
economic conditions and unavailability of real estate financing,
which could cause actual results to differ materially from
expectations. The factors that could affect SYSWIN's future
financial results are discussed more fully in SYSWIN's filings with
the SEC. Unless otherwise specified, all information provided in
this press release is as of the date of this press release, and
SYSWIN does not undertake any obligation to update any such
information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement SYSWIN Inc.'s consolidated financial results
presented in accordance with United States Generally Accepted
Accounting Principles ("GAAP"), SYSWIN Inc. uses in this press
release the following non-GAAP financial measures: (1) Non-GAAP net
income attributable to SYSWIN Inc.'s ordinary shareholders, (2)
Non-GAAP net income, (3) Non-GAAP income from operations, and (4)
Non-GAAP net income per share, basic and diluted, each of which
excludes amortization and impairment charge of intangible assets
resulting from business acquisitions. The presentation of these
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with GAAP. For more information on
these non-GAAP financial measures, please see the table captioned
"Unaudited reconciliation of GAAP and non-GAAP results" set forth
at the end of this press release.
SYSWIN Inc. believes that these non-GAAP financial measures
provide meaningful supplemental information to investors regarding
its operating performance by excluding amortization and impairment
charges of intangible assets resulting from business acquisitions,
which may not be indicative of SYSWIN Inc.'s operating performance.
These non-GAAP financial measures also facilitate management's
internal comparisons to SYSWIN Inc.'s historical performance and
assist its financial and operational decision making. The
accompanying tables have more details on the reconciliation between
non-GAAP financial measures and their most comparable GAAP
financial measures.
SYSWIN
INC.
|
Unaudited Condensed
Consolidated Statements of Operations
|
(in thousands, except
shares and per share data)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2011
RMB
|
|
2012
RMB
|
|
2011
RMB
|
|
2012
RMB
|
|
|
|
|
|
|
|
|
Net revenue
|
153,632
|
|
167,455
|
|
467,855
|
|
377,548
|
|
|
|
|
|
|
|
|
Cost of revenues
|
(86,198)
|
|
(86,852)
|
|
(221,261)
|
|
(210,839)
|
|
|
|
|
|
|
|
|
Gross profit
|
67,434
|
|
80,603
|
|
246,594
|
|
166,709
|
|
|
|
|
|
|
|
|
Selling, marketing and
administrative expenses
|
(64,160)
|
|
(57,389)
|
|
(174,174)
|
|
(168,123)
|
Other operating income,
net
|
1,689
|
|
245
|
|
4,164
|
|
1,177
|
|
|
|
|
|
|
|
|
Income/(loss)
from operations
|
4,963
|
|
23,459
|
|
76,584
|
|
(237)
|
Interest income
|
961
|
|
2,655
|
|
2,995
|
|
8,166
|
Foreign currency exchange
(loss)/gain
|
(3,856)
|
|
426
|
|
(12,796)
|
|
784
|
Other (expenses)/income,
net
|
(1,114)
|
|
(5,332)
|
|
3,217
|
|
(4,723)
|
|
|
|
|
|
|
|
|
Income before income
tax
|
954
|
|
21,208
|
|
70,000
|
|
3,990
|
Income tax
|
(1,000)
|
|
(6,950)
|
|
(24,278)
|
|
(6,539)
|
Net
(loss)/income
|
(46)
|
|
14,258
|
|
45,722
|
|
(2,549)
|
|
|
|
|
|
|
|
|
Add: Net loss/(income)
attributable to non-controlling interest
|
86
|
|
-
|
|
(118)
|
|
225
|
Net
income/(loss) attributable to SYSWIN Inc.'s ordinary
shareholders
|
40
|
|
14,258
|
|
45,604
|
|
(2,324)
|
|
|
|
|
|
|
|
|
Net income/(loss) per share,
basic and diluted
|
-
|
|
0.07
|
|
0.24
|
|
(0.01)
|
Shares used in calculating
income/(loss) per share, basic and diluted (weighted average number
of ordinary shares outstanding)
|
193,275,000
|
|
193,275,000
|
|
193,275,000
|
|
193,275,000
|
SYSWIN
INC.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
December
31,
|
|
September
30,
|
|
|
2011
RMB
|
|
2012
RMB
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
479,001
|
|
448,628
|
Restricted cash
|
|
3,000
|
|
3,000
|
Accounts receivable,
net
|
|
366,050
|
|
384,206
|
Prepaid expenses - related
party
|
|
7,968
|
|
6,651
|
Other receivables
|
|
15,884
|
|
17,833
|
Deferred tax assets
|
|
31,793
|
|
39,223
|
Total current
assets
|
|
903,696
|
|
899,541
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Property and equipment,
net
|
|
40,067
|
|
62,361
|
Intangible assets,
net
|
|
24,426
|
|
13,356
|
Prepaid expenses - related
party
|
|
5,312
|
|
-
|
Deferred tax assets
|
|
18,889
|
|
25,764
|
Other non-current
assets
|
|
28,250
|
|
26,000
|
Total assets
|
|
1,020,640
|
|
1,027,022
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accrued expenses and other
current liabilities
|
|
171,043
|
|
200,027
|
Income tax payable
|
|
24,362
|
|
20,011
|
Dividend payable
|
|
12,153
|
|
-
|
Total current
liabilities
|
|
207,558
|
|
220,038
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Deferred revenue
|
|
1,521
|
|
837
|
Deferred tax
liabilities
|
|
2,065
|
|
-
|
Total
liabilities
|
|
211,144
|
|
220,875
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Ordinary shares
|
|
1
|
|
1
|
Additional paid-in
capital
|
|
635,029
|
|
635,454
|
Statutory reserve
|
|
43,659
|
|
43,659
|
Retained earnings
|
|
129,357
|
|
127,033
|
Total SYSWIN
Inc.'s shareholders' equity
|
|
808,046
|
|
806,147
|
|
|
|
|
|
Non-controlling
interest
|
|
1,450
|
|
-
|
|
|
|
|
|
Total shareholders'
equity
|
|
809,496
|
|
806,147
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
1,020,640
|
|
1,027,022
|
SYSWIN
INC.
|
Unaudited Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2011
RMB
|
|
2012
RMB
|
|
2011
RMB
|
|
2012
RMB
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(46)
|
|
14,258
|
|
45,722
|
|
(2,549)
|
Adjustment to reconcile net
(loss)/income to net cash provided by (used in) operating
activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
5,742
|
|
5,296
|
|
14,029
|
|
16,336
|
Allowance for doubtful
accounts
|
(631)
|
|
(161)
|
|
(631)
|
|
11,737
|
Impairment charge of
intangible assets
|
-
|
|
6,195
|
|
-
|
|
6,195
|
Changes in operating assets
and liabilities
|
|
|
|
|
|
|
|
Accounts receivable
|
22,352
|
|
(20,439)
|
|
(73,576)
|
|
(29,893)
|
Other receivables
|
1,345
|
|
(1,249)
|
|
(55,649)
|
|
(1,949)
|
Increase of restricted cash,
net
|
(690)
|
|
-
|
|
(690)
|
|
-
|
Prepaid expenses - related
party
|
593
|
|
1,813
|
|
(14,372)
|
|
6,629
|
Deferred tax assets
|
(5,351)
|
|
(9,689)
|
|
(10,960)
|
|
(14,305)
|
Deferred tax
liabilities
|
(172)
|
|
(1,721)
|
|
(430)
|
|
(2,065)
|
Other non-current
assets
|
(3,000)
|
|
2,200
|
|
(5,200)
|
|
2,250
|
Accrued expenses and other
current liabilities
|
7,265
|
|
40,961
|
|
(18,744)
|
|
34,959
|
Income tax payable
|
3,974
|
|
9,065
|
|
(15,377)
|
|
(4,351)
|
Deferred revenue
|
(228)
|
|
(228)
|
|
(684)
|
|
(684)
|
Net cash
provided by (used in) operating
activities
|
31,153
|
|
46,301
|
|
(136,562)
|
|
22,310
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
Purchase of property and
equipment
|
(4,850)
|
|
(32,395)
|
|
(13,457)
|
|
(33,755)
|
(Increase)/release of
restricted cash, net
|
(9,000)
|
|
3,000
|
|
(6,000)
|
|
-
|
Acquisition of subsidiaries,
net of cash acquired
|
-
|
|
-
|
|
(8,831)
|
|
(6,375)
|
Acquisition of non-controlling
interest
|
-
|
|
-
|
|
(2,560)
|
|
(400)
|
Net cash used in investing
activities
|
(13,850)
|
|
(29,395)
|
|
(30,848)
|
|
(40,530)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
Issuance cost paid
|
-
|
|
-
|
|
(993)
|
|
-
|
Dividends paid to
shareholders
|
(2,705)
|
|
-
|
|
(3,044)
|
|
(12,153)
|
Net cash used in
financing activities
|
(2,705)
|
|
-
|
|
(4,037)
|
|
(12,153)
|
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash
equivalents
|
14,598
|
|
16,906
|
|
(171,447)
|
|
(30,373)
|
Cash and cash equivalents at
the beginning of the period
|
395,720
|
|
431,722
|
|
581,765
|
|
479,001
|
Cash and cash equivalents
at the end of the period
|
410,318
|
|
448,628
|
|
410,318
|
|
448,628
|
SYSWIN
INC.
|
Unaudited
Reconciliation of GAAP and Non-GAAP Results
|
(in thousands, except
shares and per share data)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2011
RMB
|
|
2012
RMB
|
|
2011
RMB
|
|
2012
RMB
|
|
|
|
|
|
|
|
|
GAAP
income/(loss) from operations
|
4,963
|
|
23,459
|
|
76,584
|
|
(237)
|
Amortization of intangible
assets resulting from business acquisitions
|
689
|
|
689
|
|
1,721
|
|
2,065
|
Impairment charge of
intangible assets resulting from business acquisition
|
-
|
|
6,195
|
|
-
|
|
6,195
|
Non-GAAP income from
operations
|
5,652
|
|
30,343
|
|
78,305
|
|
8,023
|
|
|
|
|
|
|
|
|
GAAP net
(loss)/income
|
(46)
|
|
14,258
|
|
45,722
|
|
(2,549)
|
Amortization of intangible
assets resulting from business acquisitions (net of tax)
|
517
|
|
517
|
|
1,291
|
|
1,549
|
Impairment charge of
intangible assets resulting from business acquisition (net of
tax)
|
-
|
|
4,646
|
|
-
|
|
4,646
|
Non-GAAP net
income
|
471
|
|
19,421
|
|
47,013
|
|
3,646
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to SYSWIN Inc.'s
ordinary shareholders
|
40
|
|
14,258
|
|
45,604
|
|
(2,324)
|
Amortization of intangible
assets resulting from business acquisition (net of tax and
non-controlling interest)
|
475
|
|
517
|
|
1,187
|
|
1,522
|
Impairment charge of
intangible assets resulting from business acquisition (net of
tax)
|
-
|
|
4,646
|
|
-
|
|
4,646
|
Non-GAAP net income
attributable to SYSWIN Inc.'s ordinary
shareholders
|
515
|
|
19,421
|
|
46,791
|
|
3,844
|
|
|
|
|
|
|
|
|
GAAP net income/(loss) per
share, basic and diluted
|
-
|
|
0.07
|
|
0.24
|
|
(0.01)
|
Non-GAAP net income per share,
basic and diluted
|
-
|
|
0.10
|
|
0.24
|
|
0.02
|
Shares used in calculating
GAAP/Non-GAAP income/(loss) per share, basic and diluted (weighted
average number of ordinary shares outstanding)
|
193,275,000
|
|
193,275,000
|
|
193,275,000
|
|
193,275,000
|
SOURCE SYSWIN Inc.