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 May 2015

 


 

Commission File Number: 001-35190

 


 

TAOMEE HOLDINGS LIMITED

 

16/F, Building No. A-2, No. 1528 Gumei Road, Xuhui District

Shanghai 200233, People’s Republic of China

(86-21) 6128-0056

(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  o

 

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): o

 

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): o

 

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  o  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

 

 

 



 

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.

 

 

TAOMEE HOLDINGS LIMITED

 

 

 

 

 

By:

/s/ Sam Lawn

 

Name:

Sam Lawn

 

Title:

Chief Financial Officer

 

 

Date: May 22, 2015

 

2



 

EXHIBIT INDEX

 

Exhibit 99.1 — Press Release

 

3




Exhibit 99.1

 

TAOMEE REPORTS FIRST QUARTER 2015 UNAUDITED FINANCIAL RESULTS

 

(Shanghai, China — May 21, 2015) — Taomee Holdings Limited (NYSE: TAOM) (“Taomee” or the “Company”), a leading children’s entertainment and media company in China, today reported its unaudited financial results for the first quarter of 2015.

 

Highlights of the First Quarter of 2015

 

·                          Total net revenues were US$9.0 million in the first quarter of 2015, an increase of 18.6% from US$7.6 million in the fourth quarter of 2014 and a decrease of 22.9% from US$11.7 million in the first quarter of 2014. This result was slightly above the high end of management’s previous outlook from US$8.5 million to US$9.0 million.

 

·                          Net revenues from PC business were US$6.0 million in the first quarter of 2015, an increase of 14.0% from US$5.3 million in the fourth quarter of 2014 and a decrease of 31.6% from US$8.8 million in the first quarter of 2014.

 

·                          Net revenues from mobile business were US$1.5 million in the first quarter of 2015, an increase of 7.9% from US$1.4 million in the fourth quarter of 2014 and an increase of 153.8% from US$0.6 million in the first quarter of 2014.

 

·                          Net revenues from offline business were US$1.5 million in the first quarter of 2015, an increase of 60.5% from US$0.9 million in the fourth quarter of 2014 and a decrease of 36.1% from US$2.3 million in the first quarter of 2014.

 

·                          Gross profit was US$6.2 million in the first quarter of 2015, an increase of 10.2% from US$5.6 million in the fourth quarter of 2014 and a decrease of 27.5% from US$8.5 million in the first quarter of 2014.

 

·                          Loss from operations was US$1.8 million in the first quarter of 2015, compared with a loss of US$0.7 million in the fourth quarter of 2014 and a profit of US$0.5 million in the first quarter of 2014.

 

·                          Non-GAAP net loss attributable to holders of ordinary shares was US$1.2 million in the first quarter of 2015, as compared with a net income of US$0.6 million in the fourth quarter of 2014 and a net income of US$1.2 million in the first quarter of 2014.

 

·                          Non-GAAP basic and diluted loss per ADS1 were both US$0.034  in the first quarter of 2015, as compared with US$0.020 and US$0.018 earnings per ADS, respectively, in the fourth quarter of 2014 and US$0.032 for both basic and diluted earnings per ADS in the first quarter of 2014.

 


1 Each American depositary share (“ADS”) represents 20 ordinary shares.

 

1



 

Key Operating Metrics

 

·         The number of active accounts (“ACA”) for the Company’s virtual worlds under operation in mainland China was approximately 39.4 million in the first quarter of 2015, an increase of 7.1% from 36.8 million in the fourth quarter of 2014 and a decrease of 12.6% from 45.1 million in the first quarter of 2014.

 

·         Active paying accounts (“APA”) for the Company’s virtual worlds under operation in mainland China were 0.8 million in the first quarter of 2015, flat as compared with 0.8 million in the fourth quarter of 2014, and a decrease of 42.9% from 1.4 million in the first quarter of 2014.

 

·         Average revenue per user (“ARPU”) for the Company’s virtual worlds under operation in mainland China was approximately RMB47 in the first quarter of 2015, an increase of 9.3% as compared with RMB43 in the fourth quarter of 2014 and an increase of 20.5% from RMB39 in the first quarter of 2014.

 

·          The number of downloads of the mobile applications operated by the Company was approximately 2.2 million in the first quarter of 2015, a decrease of 18.5% from 2.7 million in the fourth quarter of 2014 and an increase of 22.2% from 1.8 million in the first quarter of 2014.

 

“We delivered revenues slightly above the high-end of our guidance for the first quarter. Offline revenues bounced back from our fourth quarter results, while PC and Mobile revenues, which were previously grouped as online revenues, continued to grow as we had anticipated. Organizationally, we are satisfied with the way our business units are re-aligned, and we are moving forward to capture the market with our various teams incentivized. We continue to develop new and improve on existing content — both internally and externally — for delivery through our various platforms”, commented Mr. Benson Wang, co-founder and chief executive officer of Taomee.

 

“As we enter the seasonally slower period of second quarter, we are nevertheless encouraged by our pipeline of games, animation series and movie coming out in the second half of the year.  While it may take a few more quarters to see the success of our strategy, we remain committed to investing in the long term prospects of our multifaceted business.”

 

Unaudited Financial Results for the First Quarter of 2015

 

Net Revenues

 

Total net revenues were US$9.0 million in the first quarter of 2015, an increase of 18.6% from US$7.6 million in the fourth quarter of 2014 and a decrease of 22.9% from US$11.7 million in the first quarter of 2014.

 

Net revenues from PC business were US$6.0 million in the first quarter of 2015, an increase of 14.0% from US$5.3 million in the fourth quarter of 2014 and a decrease of 31.6% from US$8.8 million in the first quarter of 2014. The quarter-over-quarter (QoQ) increase was primarily due to the seasonality of more non-school days in the first quarter. The year-over-year (YoY) decrease was mainly due to the decrease in active paying accounts.

 

Net revenues from mobile business were US$1.5 million in the first quarter of 2015, an increase of 7.9% from US$1.4 million in the fourth quarter of 2014 and an increase of 153.8% from US$0.6 million in the first quarter of 2014. The QoQ increase was primarily due to the revenue contribution from overseas licensing. And the YoY increase was primarily due to our mobile game Reverse World, which was commercially launched in the third quarter of 2014.

 

2



 

Net revenues from offline business were US$1.5 million in the first quarter of 2015, an increase of 60.5% from US$0.9 million in the fourth quarter of 2014 and a decrease of 36.1% from US$2.3 million in the first quarter of 2014. The QoQ increase was primarily due to an increase in our toys and film licensing business. The YoY decrease was primarily due to the decrease in the Company’s toys and merchandise licensing businesses.

 

Cost of Revenues

 

Total cost of revenues was US$2.8 million in the first quarter of 2015, an increase of 42.1% from US$2.0 million in the fourth quarter of 2014 and a decrease of 10.5% from US$3.2 million in the first quarter of 2014.

 

PC business related cost of revenues was US$1.3 million in the first quarter of 2015, an increase of 29.5% from US$1.0 million in the fourth quarter of 2014 and a decrease of 30.1% from US$1.9 million in the first quarter of 2014. The QoQ increase was primarily due to an increase in payroll expenses and royalties related to our operation of certain third-party developed virtual worlds. While the YoY decrease was primarily due to the decrease in bandwidth cost and royalties related to our operation of certain third-party developed virtual worlds.

 

Mobile business related cost of revenues was US$0.2 million in the first quarter of 2015, an increase of 50.7% from US$0.1 million in the fourth quarter of 2014 and an increase of 187.6% from US$77 thousand in the first quarter of 2014. The QoQ and YoY increases were primarily due to the increase in payroll expenses.

 

Offline business related cost of revenues was US$1.3 million in the first quarter of 2015, an increase of 55.4% from US$0.8 million in the fourth quarter of 2014 and an increase of 6.8% from US$1.2 million in the first quarter of 2014. The QoQ increase was primarily due to an increase in cost related to our film licensing revenue. And the YoY increase was also due to an increase in cost related to our film licensing revenue, which was partially offset by a decrease in cost related to our toys business.

 

Gross Profit and Gross Margin

 

Gross profit was US$6.2 million in the first quarter of 2015, an increase of 10.2% from US$5.6 million in the fourth quarter of 2014 and a decrease of 27.5% from US$8.5 million in the first quarter of 2014.

 

Gross margin was 68.7% in the first quarter of 2015, as compared with 73.9% in the fourth quarter of 2014 and 73.0% in the first quarter of 2014.

 

Gross margin for the PC business was 78.4% in the first quarter of 2015, as compared with 81.0% in the fourth quarter of 2014 and 78.9% in the first quarter of 2014.

 

Gross margin for the mobile business was 85.6% in the first quarter of 2015, as compared with 89.7% in the fourth quarter of 2014 and 87.2% in the first quarter of 2014.

 

Gross margin for the offline business was 11.9% in the first quarter of 2015, as compared with 9.1% in the fourth quarter of 2014 and 47.3% in the first quarter of 2014.

 

3



 

Total Operating Expenses

 

Total operating expenses were US$8.0 million in the first quarter of 2015, an increase of 25.5% from US$6.3 million in the fourth quarter of 2014 and flat as compared with US$8.0 million in the first quarter of 2014.

 

·                  Product development expenses were US$3.6 million in the first quarter of 2015, a decrease of 6.6% from US$3.9 million in the fourth quarter of 2014 and an increase of 12.3% from US$3.2 million in the first quarter of 2014. The QoQ decrease was primarily due to the decrease in payroll expenses. The YoY increase was primarily due to an increase in payroll expenses, while partially offset by a decrease toy design fee.

 

·                  Sales and marketing expenses were US$2.7 million in the first quarter of 2015, an increase of 30.3% from US$2.1 million in the fourth quarter of 2014 and an increase of 31.9% from US$2.0 million in the first quarter of 2014. The QoQ and YoY increases were primary due to an increase in film promotion costs related to our Mole III film.

 

·                  General and administrative expenses were US$3.0 million in the first quarter of 2015, an increase of 10.8% from US$2.7 million in the fourth quarter of 2014 and a decrease of 16.9% from US$3.6 million in the first quarter of 2014. The QoQ increase was primarily due to an increase in indirect tax costs related to intercompany service charges, partially offset by a decrease in payroll expenses. The YoY decrease was primarily due to the decrease in indirect tax costs related to intercompany service charges and share-based compensation.

 

Income/ (Loss) from Operations

 

Loss from operations was US$1.8 million in the first quarter of 2015, compared with a loss of US$0.7 million in the fourth quarter of 2014 and a profit of US$0.5 million in the first quarter of 2014.

 

Share of Profit/(Loss) from Equity Method Investment

 

Share of profit/loss from equity method investment was a loss of US$0.4 million in the first quarter of 2015, as compared with a loss of US$0.2 million in the fourth quarter of 2014 and a profit of US$42 thousand in the first quarter of 2014.

 

Net Income/(loss) Attributable to Holders of Ordinary Shares

 

Net loss attributable to holders of ordinary shares was US$1.6 million in the first quarter of 2015, as compared with a net income of US$0.2 million in the fourth quarter of 2014 and a net income of US$0.5 million in the first quarter of 2014.

 

Basic and diluted loss per ADS were both US$0.045 in the first quarter of 2015, as compared with US$0.005 for both basic and diluted earnings per ADS in the fourth quarter of 2014 and US$0.014 for both basic and diluted earnings per ADS in the first quarter of 2014.

 

4



 

Non-GAAP net loss attributable to holders of ordinary shares was US$1.2 million in the first quarter of 2015, as compared with a net income of US$0.6 million in the fourth quarter of 2014 and a net income of US$1.2 million in the first quarter of 2014.

 

Non-GAAP basic and diluted loss per ADS were both US$0.034 in the first quarter of 2015, as compared with US$0.020 and US$0.018 earnings per ADS, respectively, in the fourth quarter of 2014 and US$0.032 for both basic and diluted earnings per ADS in the first quarter of 2014.

 

Cash and Cash Equivalents

 

As of March 31, 2015, the Company had US$72.0 million of cash and cash equivalents, as compared with US$103.2 million as of December 31, 2014.The QoQ decrease was mainly due to our payment of the USD$24.6 million special dividend and USD$4.0 million capital expenditures.

 

Capital Expenditures

 

The company had capital expenditures of US$4.0 million in the first quarter of 2015, as compared with US$1.6 million in the fourth quarter of 2014, and US$0.5 million in the first quarter of 2014. Our capital expenditures were used primarily for (i) prepayments for land use rights, (ii) prepayments for intangible assets, and (iii) purchase of computer hardware and equipment. Actual future capital expenditures may differ from the amounts indicated above.

 

In December 2014, the Company entered into a land use right transfer agreement with Songjiang Planning and Land Administration Bureau of Shanghai Municipality to purchase the land use right of two parcels of land for considerations of RMB11.0 million ($1.8 million) and RMB10.4 million ($1.7 million), respectively. 20% of the considerations amounting RMB2.2 million (US$0.4 million) and RMB2.1 million (US$0.3 million) were paid in December 2014. The rest of the consideration amounting RMB8.8 million ($1.4 million) and RMB8.3 million ($1.4 million) were paid in January 2015.

 

In December 2014, the Company was granted a two-year right from a third party to develop a web game and a mobile ARPG game based on Fairy Tail, a famous Japanese IP derived from manga series. Total license fees and minimum guarantees were $1.8 million, of which $1.0 million license fee has been paid as of March 31, 2015.

 

Share-based Compensation

 

Share-based compensation was US$0.4 million for the first quarter of 2015 as compared with US$0.5 million in the fourth quarter of 2014 and US$0.6 million in the first quart of 2014.

 

Recent Business Highlights

 

·                  On February 10, 2015, Taomee started to close-beta test a new 3D web-based fighting named Red Pupil Blade.

 

5



 

Outlook for the Second Quarter of 2015

 

Net revenues of the second quarter of 2015 are expected to be within in the range of US$8.2 million to US$8.7 million, which represents a year-over-year decrease of approximately 17.5% to 22.2%. This forecast reflects the Company’s current and preliminary view of the operating results, and is subject to future changes.

 

Non-GAAP Financial Measures

 

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP net income attributable to the Company’s shareholders and non-GAAP earnings per ADS by excluding share-based compensation and impairment charges from net income attributable to the Company’s shareholders and from the calculation of earnings per ADS. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results.  The use of the above non-GAAP financial measures has certain limitations.  Share-based compensation charge has been and will continue to be incurred and is not reflected in the presentation of the non-GAAP financial measures; it should be considered in the overall evaluation of our results.  None of the non-GAAP measures is a measure of net income attributable to the Company’s shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. We compensate for these limitations by providing the relevant disclosure of our share-based compensation and impairment charges in our reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating our performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP.  Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

 

Conference Call

 

The Company will host a conference call and live webcast at 8:00 a.m. ET (New York) on Thursday, May 21, 2015 (which is 8:00 p.m. in China on Thursday, May 21, 2015). A brief presentation to accompany the conference call will be available on the Company’s IR website (http://ir.taomee.com/phoenix.zhtml?c=243417&p=irol-reportsannual) before the call.

 

The dial-in details for the live conference call are:

 

Conference ID:

 

37866528

U.S. toll-free:

 

+1-866-519-4004

Hong Kong toll-free:

 

800-906-601

International:

 

+65-6723-9381

China Mainland:

 

400-620-8038

Passcode:

 

Taomee

 

6



 

A live webcast and archive of the conference call will be available on the Investor Relations section of Taomee’s website at http://edge.media-server.com/m/p/88toytti. A telephone replay of the call will be available after the conclusion of the conference call at 11:00 a.m. ET on May 21, 2015 through 09:59 a.m. ET, May 29, 2015.  The dial-in details for the telephone replay are:

 

Conference ID:

 

37866528

International:

 

+61-2-8199-0299

China:

 

400-632-2162

 

About Taomee Holdings Limited

 

Taomee Holdings Limited (“Taomee” or “the Company”) is China’s leader in children’s entertainment and media. Its award winning content offerings are both engaging and educational, endearing it to children, as well as to parents and teachers. The Company was founded in 2007 with the mission to bring joy and inspiration to children. Its popular character franchises, including SEER and MOLE’S WORLD, are distributed online via virtual worlds, web games and mobile applications, as well as through traditional media, including animated box office films, TV series, books and consumer products, most notably toys and trading cards. Its online community regularly achieves top search ranking in China, Hong Kong and Taiwan. Taomee has been consistently recognized for its leadership and innovative contributions to the children’s market, including accolades from China’s Ministry of Culture and the China Animation Association.

 

For more information, please visit: http://www.taomee.com/en_taomee.html

 

· Visit online virtual world communities at www.61.com

· Watch animations and films at http://v.61.com/

· Download mobile games and applications at http://m.61.com/

· Share with other parents and caregivers at http://mama.61.com/

 

Safe Harbor Statements

 

This press release contains statements that may constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and 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. Forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Among other things, the management’s quotations and outlook information contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Potential risks and uncertainties include, but are not limited to: the Company’s business strategies and initiatives as well as business plans; future business development, results of operations and financial condition; expected changes in revenues and certain cost or expense items; expectations with respect to increased revenue growth and the Company’s ability to sustain profitability; the Company’s services and products under development or planning; the Company’s ability to attract users and further enhance the Company’s brand recognition; and trends and competition in the children’s entertainment and media market and industry, including those for online entertainment. Further information regarding these and other risks is included in Taomee’s annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as required under applicable law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, the Company cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

 

7



 

For further information, please contact

 

Angela Wang

Taomee Holdings Limited

+86-21-61280056 Ext 8651

ir@taomee.com

 

8



 

Taomee Holdings Limited - Unaudited Consolidated Balance Sheets

 

 

 

In USD

 

In USD

 

 

 

March 31

 

December 31

 

 

 

2015

 

2014

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

71,972,847

 

$

103,173,555

 

Accounts receivable, net

 

3,357,556

 

2,499,084

 

Inventory

 

466,370

 

238,055

 

Prepaid Income tax

 

849,250

 

797,711

 

Due from related parties

 

2,615,264

 

2,592,450

 

Prepayments and other current assets

 

5,939,838

 

4,128,248

 

Deferred tax assets, current

 

5,850,634

 

5,872,817

 

Total current assets

 

91,051,759

 

119,301,920

 

 

 

 

 

 

 

Investment in equity investees

 

17,329,674

 

16,138,860

 

Property and equipment, net

 

1,801,737

 

1,813,660

 

Prepayments for land use rights and building

 

4,942,854

 

2,162,445

 

Acquired intangible assets

 

1,047,919

 

1,113,495

 

Other assets

 

1,578,786

 

1,331,363

 

Total assets

 

$

117,752,729

 

$

141,861,743

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

1,185,774

 

$

786,446

 

Advance from customers

 

8,495,028

 

8,236,080

 

Due to related parties

 

366,845

 

422,019

 

Deferred revenue

 

12,616,242

 

11,768,665

 

Deferred tax liabilities, current

 

696,160

 

698,800

 

Accrued expenses and other current liabilities

 

4,274,235

 

4,814,555

 

Total current liabilities

 

27,634,284

 

26,726,565

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Taomee Holdings Limited shareholders’ equity

 

 

 

 

 

Ordinary shares ($0.00002 par value; 875,000,000 shares authorized; 751,820,760 and 751,088,350 shares issued; 706,823,860 and 708,350,670 outstanding as of March 31, 2015 and December 31, 2014, respectively)

 

15,036

 

15,022

 

Treasury stock (at cost) Additional paid-in capital

 

(11,900,702) 76,692,897

 

(11,521,316) 76,308,327

 

Retained earnings

 

21,108,150

 

45,860,434

 

Accumulated other comprehensive income

 

3,921,578

 

4,188,419

 

Taomee Holdings Limited shareholders’ equity

 

89,836,959

 

114,850,886

 

Noncontrolling interests

 

281,486

 

284,292

 

Total equity

 

$

90,118,445

 

$

115,135,178

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

117,752,729

 

$

141,861,743

 

 

9



 

Taomee Holdings Limited - Unaudited Consolidated Statements of Operations

 

 

 

In USD, except for share data
For three months ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2015

 

2014

 

2014

 

Revenues:

 

 

 

 

 

 

 

PC business, net

 

$

6,000,333

 

$

5,261,317

 

$

8,770,391

 

Mobile business, net

 

1,529,565

 

1,417,648

 

602,679

 

Offline business, net

 

1,484,671

 

924,982

 

2,323,759

 

Total net revenues

 

9,014,569

 

7,603,947

 

11,696,829

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

PC business

 

(1,294,944

)

(999,689

)

(1,852,829

)

Mobile business

 

(220,977

)

(146,650

)

(76,842

)

Offline business

 

(1,307,427

)

(841,233

)

(1,223,634

)

Total cost of revenues

 

(2,823,348

)

(1,987,572

)

(3,153,305

)

 

 

 

 

 

 

 

 

Gross profit

 

6,191,221

 

5,616,375

 

8,543,524

 

 

 

 

 

 

 

 

 

Operating income (expenses):

 

 

 

 

 

 

 

Product development

 

(3,596,853

)

(3,852,603

)

(3,202,027

)

Sales and marketing

 

(2,690,336

)

(2,064,342

)

(2,039,257

)

General and administrative

 

(3,026,623

)

(2,731,761

)

(3,642,791

)

Impairment loss on acquired intangible assets

 

 

 

 

(116,114

)

Other operating income

 

1,349,479

 

2,303,384

 

984,567

 

Total operating expenses

 

(7,964,333

)

(6,345,322

)

(8,015,622

)

 

 

 

 

 

 

 

 

Income (Loss) from operations

 

(1,773,112

)

(728,947

)

527,902

 

 

 

 

 

 

 

 

 

Interest income

 

578,017

 

1,040,010

 

592,635

 

Other income (expenses), net

 

(86,294

)

(165,975

)

(583,216

)

Income/(Loss) before income taxes and share of profit/(loss) in equity method investments

 

(1,281,389

)

145,088

 

537,321

 

 

 

 

 

 

 

 

 

Income tax benefit/(expense)

 

14,980

 

172,942

 

(92,286

)

 

 

 

 

 

 

 

 

Share of profit/(loss) in equity method investments

 

(363,281

)

(189,500

)

42,098

 

Net income/(loss)

 

(1,629,690

)

128,530

 

487,133

 

 

 

 

 

 

 

 

 

Less: Net income/(loss) attributable to non-controlling interest

 

(25,106

)

(35,397

)

(9,586

)

 

 

 

 

 

 

 

 

Net income/(loss) attributable to holders of ordinary shares

 

$

(1,604,584

)

$

163,927

 

$

496,719

 

Earnings/(Loss) per ADS

 

 

 

 

 

 

 

-Basic

 

$

(0.045

)

$

0.005

 

$

0.014

 

-Diluted

 

$

(0.045

)

$

0.005

 

$

0.014

 

Weighted average number of shares used in calculation

 

 

 

 

 

 

 

- Basic

 

707,478,950

 

709,848,562

 

722,760,411

 

- Diluted

 

707,478,950

 

714,745,197

 

737,488,586

 

Weighted average number of ADS used in calculation

 

 

 

 

 

 

 

- Basic

 

35,373,947

 

35,492,428

 

36,138,021

 

- Diluted

 

35,373,947

 

35,737,260

 

36,874,429

 

 

10



 

Taomee Holdings Limited - Unaudited Consolidated Other Comprehensive Income

 

 

 

In USD,
For three months ended

 

 

 

March 31,
2015

 

December 31,
2014

 

March 31,
2014

 

Net income/(loss)

 

$

(1,629,690

)

$

128,530

 

$

487,133

 

Other comprehensive income/(loss), net of tax Foreign currency translation adjustments

 

(266,841

)

273,356

 

(551,622

)

 

 

 

 

 

 

 

 

Comprehensive income/(loss)

 

(1,896,531

)

401,886

 

(64,489

)

Comprehensive income/(loss) attributable to noncontrolling interest

 

(25,106

)

(35,397

)

(9,586

)

 

 

 

 

 

 

 

 

Comprehensive income/(loss) attributable to Taomee Holdings Limited

 

$

(1,871,425

)

$

437,283

 

$

(54,903

)

 

11



 

Taomee Holdings Limited - Reconciliation of Non-GAAP and GAAP Results

 

 

 

In USD, except for share data
For three months ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2015

 

2014

 

2014

 

Reconciliation from Non-GAAP measures to GAAP measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income/(loss) attributable to holders of ordinary shares

 

$

(1,204,277

)

$

643,105

 

$

1,183,394

 

Share-based compensation

 

(400,307

)

(479,178

)

(570,561

)

Impairment loss on acquired intangible assets

 

 

 

(116,114

)

GAAP net income/(loss) attributable to holders of ordinary shares

 

$

(1,604,584

)

$

163,927

 

$

496,719

 

 

 

 

 

 

 

 

 

Non-GAAP earnings/(loss) per ADS

 

 

 

 

 

 

 

-Basic

 

$

(0.034

)

$

0.020

 

$

0.032

 

-Diluted

 

$

(0.034

)

$

0.018

 

$

0.032

 

 

12


Taomee Holdings Limited American Depositary Shares (Each Representing 20 Ordinary Shares) (NYSE:TAOM)
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