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 August 2014

 


 

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: August 27, 2014

 

2



 

EXHIBIT INDEX

 

Exhibit 99.1 — Press Release

 

3




Exhibit 99.1

 

TAOMEE REPORTS SECOND QUARTER 2014 UNAUDITED FINANCIAL RESULTS

 

(Shanghai, China —August 26, 2014) — 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 second quarter of 2014.

 

Highlights of the Second Quarter of 2014

 

·                  Total net revenues were US$10.5 million in the second quarter of 2014, a decrease of 9.8% from US$11.7 million in the first quarter of 2014 and a decrease of 12.4% from US$12.0 million in the second quarter of 2013.

 

·                  Net revenues from online businesses were US$8.4 million in the second quarter of 2014, a decrease of 10.5% from US$9.4 million in the first quarter of 2014 and a decrease of 2.9% from US$8.6 million in the second quarter of 2013.

 

·                  Net revenues from offline businesses were US$2.1 million in the second quarter of 2014, a decrease of 7.1% from US$2.3 million in the first quarter of 2014 and a decrease of 36.5% from US$3.4 million in the second quarter of 2013.

 

·                  Gross profit was US$7.5 million in the second quarter of 2014, a decrease of 12.0% from US$8.5 million in the first quarter of 2014 and a decrease of 11.9% from US$8.5 million in the second quarter of 2013.

 

·                  Loss from operations was US$1.8 million in the second quarter of 2014, compared with a profit of US$0.5 million in the first quarter of 2014 and a loss of US$0.5 million in the second quarter of 2013.

 

·                  Non-GAAP net loss attributable to holders of ordinary shares was US$0.2 million in the second quarter of 2014, as compared with US$1.2 million Non-GAAP net income in the first quarter of 2014 and US$1.6 million Non-GAAP net income in the second quarter of 2013.

 

·                  Non-GAAP basic and diluted loss per ADS1 were US$0.01 and US$0.01, respectively, in the second quarter of 2014, as compared with US$0.03 and US$0.03 earnings per ADS, respectively, in the first quarter of 2014 and US$0.04 and US$0.04 earnings per ADS, respectively, in the second quarter of 2013.

 

Key Operating Metrics

 

·                  The number of active accounts (“ACA”) for the Company’s virtual worlds under operation in mainland China was approximately 41.9 million in the second quarter of 2014, a decrease of 7.7% from 45.1 million in the first quarter of 2014 and an increase of 3.2% from 40.6 million in the second quarter of 2013.

 


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

 

1



 

·                  Active paying accounts (“APA”) for the Company’s virtual worlds under operation in mainland China were 1.1 million in the second quarter of 2014, a decrease of 21.4% from 1.4 million in the first quarter of 2014, and a decrease of 15.4% from 1.3 million in the second quarter of 2013.

 

·                  Average revenue per user (“ARPU”) for the Company’s virtual worlds under operation in mainland China was approximately RMB41 in the second quarter of 2014, an increase of 5.1% from RMB39 in the first quarter of 2014 and an increase of 10.8% from RMB37 in the second quarter of 2013.

 

·                  The number of downloads of the mobile applications operated by the Company increased by approximately 1.6 million (including 0.4 million downloads of Reverse World during its testing period) in the second quarter of 2014, a decrease of 11.1% compared with 1.8 million in the first quarter of 2014 and a decrease of 30.4% from 2.3 million in the second quarter of 2013.

 

“The second quarter was the beginning of a transition period, in which we made substantial progress toward strengthening our company for the long term.  We re-aligned our business units to integrate our web, mobile, media entertainment and offline businesses to promote our franchises in unison, as well as made progress in developing new online games that have the potential to become franchise contributors.  At the same time, we introduced our first mobile game from our Glove Games division, which is an emerging area for us as we anticipate a healthy pipeline of 2-3 more mobile games to launch before year end,” commented Mr. Benson Wang, co-founder and chief executive officer of Taomee.

 

“As we shift into the second half of 2014, we will continue to invest in our unique business model that will ultimately differentiate us from competitors.  While it may take a few quarters to ramp up, we remain confident in our strategies and the long-term prospects of our business.”

 

Unaudited Financial Results for Second Quarter of 2014

 

Net Revenues

 

Total net revenues were US$10.5 million in the second quarter of 2014, a decrease of 9.8% from US$11.7 million in the first quarter of 2014 and a decrease of 12.4% from US$12.0 million in the second quarter of 2013.

 

Net online business revenues were US$8.4 million in the second quarter of 2014, a decrease of 10.5% from US$9.4 million in the first quarter of 2014 and a decrease of 2.9% from US$8.6 million in the second quarter of 2013. The quarter-over-quarter (QoQ) decrease was primarily due to the seasonality of less non-school days in the second quarter. The year-over-year (YoY) decrease was mainly driven by the decline in active paying accounts.

 

Net offline business revenues were US$2.1 million in the second quarter of 2014, a decrease of 7.1% from US$2.3 million in the first quarter of 2014 and a decrease of 36.5% from US$3.4 million in the second quarter of 2013. The QoQ decrease was primarily due to a decrease in our toy business, while partially offset by an increase in our licensing business. The YoY decrease was primarily due to the decrease in the Company’s toy business.

 

2



 

Cost of Services

 

Total cost of services was US$3.0 million in the second quarter of 2014, a decrease of 3.9% from US$3.2 million in the first quarter of 2014 and a decrease of 13.7% from US$3.5 million in the second quarter of 2013.

 

Online business related costs were US$1.7 million in the second quarter of 2014, a decrease of 12.0% as compared with US$1.9 million in the first quarter of 2014 and a decrease of 4.0% from US$1.8 million in the second quarter of 2013.  The QoQ decrease was primarily due to a decrease in royalties related to our operation of certain third-party developed virtual worlds and payroll expenses.  The YoY decrease was primarily due to a decrease in amortization of intangible assets as result from certain game impairments previously made in the fourth quarter of 2013 and the first quarter of 2014.

 

Offline business related costs were US$1.3 million in the second quarter of 2014, an increase of 8.9% from US$1.3 million in the first quarter of 2014 and a decrease of 23.5% from US$1.7 million in the second quarter of 2013.  The QoQ increase was primarily due to an increase in licensing business related cost and YoY decrease was primarily due to a decrease in costs related to our toy business.

 

Gross Profit and Gross Margin

 

Gross profit was US$7.5 million in the second quarter of 2014, a decrease of 12.0% from US$8.5 million in the first quarter of 2014 and a decrease of 11.9% from US$8.5 million in the second quarter of 2013.

 

Gross margin was 71.3% in the second quarter of 2014, as compared with 73.0% in the first quarter of 2014 and 70.8% in the second quarter of 2013.

 

Gross margin for the online business was 79.8% in the second quarter of 2014, as compared with 79.4% in the first quarter of 2014 and 79.5% in the second quarter of 2013.

 

Gross margin for the offline business was 38.3% in the second quarter of 2014, as compared with 47.3% in the first quarter of 2014 and 48.8% in the second quarter of 2013.

 

Total Operating Expenses

 

Total operating expenses were US$9.3 million in the second quarter of 2014, an increase of 16.0% from US$8.0 million in the first quarter of 2014 and an increase of 2.6% from US$9.1 million in the second quarter of 2013.

 

·                  Product development expenses were US$3.4 million in the second quarter of 2014, an increase of 7.7% from US$3.2 million in the first quarter of 2014 and an increase of 4.2% from US$3.3 million in the second quarter of 2013.  The QoQ increase was primarily due to an increase in payroll expenses, partially offset by a decrease in toy design fees.  The YoY increase was primarily due to an increase in share-based compensation.

 

3



 

·                  Sales and marketing expenses were US$2.9 million in the second quarter of 2014, an increase of 43.2% from US$2.0 million in the first quarter of 2014 and an increase of 22.6% from US$2.4 million in the second quarter of 2013.  The QoQ and YoY increases were primarily due to an increase in film promotion expenses.

 

·                  General and administrative expenses were US$3.1 million in the second quarter of 2014, a decrease of 15.6% from US$3.6 million in the first quarter of 2014 and an increase of 4.1% from US$3.0 million in the second quarter of 2013.  The QoQ decrease was primarily due to a decrease in indirect tax costs related to intercompany service charges and professional fees. The YoY increase was primarily due to the increased indirect tax costs related to intercompany service charges, partially offset by a decrease in professional fees.

 

Income/ (Loss) from Operations

 

Loss from operations was US$1.8 million in the second quarter of 2014, compared with a profit of US$0.5 million in the first quarter of 2014 and a loss of US$0.5 million in the second quarter of 2013.

 

Share of Profit/ (Loss) from Equity Method Investment

 

Share of loss from equity method investment was US$0.2 million in the second quarter of 2014, as compared with a profit of US$42 thousand in the first quarter of 2014 and a loss of US$73 thousand in the second quarter of 2013.

 

Net Income/ (Loss)

 

Net loss attributable to holders of ordinary shares was US$0.8 million in the second quarter of 2014, as compared with US$0.5 million income in the first quarter of 2014 and US$0.3 million income in the second quarter of 2013.

 

Basic and diluted loss per ADS were US$0.02 and US$0.02, respectively, in the second quarter of 2014, as compared with US$0.01 and US$0.01 earnings per ADS, respectively, in the first quarter of 2014 and US$0.01 and US$0.01 earnings per ADS, respectively, in the second quarter of 2013.

 

Non-GAAP net loss attributable to holders of ordinary shares was US$0.2 million in the second quarter of 2014, as compared with US$1.2 million net income in the first quarter of 2014 and US$1.6 million net income in the second quarter of 2013.

 

Non-GAAP basic and diluted loss per ADS were US$0.01 and US$0.01, respectively, in the second quarter of 2014, as compared with US$0.03 and US$0.03 earnings per ADS, respectively, in the first quarter of 2014 and US$0.04 and US$0.04 earnings per ADS, respectively, in the second quarter of 2013.

 

Cash and Cash Equivalents

 

As of June 30, 2014, the Company had US$104.4 million of cash and cash equivalents, as compared with US$107.9 million as of March 31, 2014.

 

4



 

Capital Expenditures

 

Capital expenditures in the second quarter of 2014 were US$0.3 million, as compared with US$0.5 million in the first quarter of 2014, and US$0.3 million in the second quarter of 2013.  Capital expenditures were used primarily for (i) purchase of computer hardware and equipment, (ii) purchase of intangible assets and (iii) purchase of franchises and online game licensing rights for our pipeline.

 

Share-based Compensation

 

Share-based compensation was US$0.6 million for the second quarter of 2014 as compared with US$0.6 million in the first quarter of 2014 and US$0.3 million in the second quarter of 2013.

 

Share Repurchase Program

 

During the second quarter of 2014, Taomee repurchased 682,450 ADSs.  As of June 30, 2014, the Company has repurchased a total of 2,802,163 ADSs under the Company’s share repurchase program at an average price of approximately US$5.57 per ADS.

 

Recent Business Highlights

 

·                  On July 12 2014, Taomee in partnership with Enlight Media, released the fourth installment of Seer movie franchise, Seer 4: Magic Stone Wars, in major theatres throughout China.  As of August 7, 2013, the film is estimated to generate over RMB60 million (approximately US$10.0 million) in box-office sales.

 

·                  On July 25 2014, Taomee (Glove Game) commercially launched Reverse World in App Store and reached No. 26 among the best-selling apps.

 

·                  On August 6, 2014, Taomee (Glove Game) commercially launched Reverse World English Version in Google Play through IGG and achieved over 40,000 downloads on the first day of commercial launch.

 

Outlook for Third Quarter of 2014

 

Net revenues of the third quarter of 2014 are expected to be in the range of US$12.7 million to US$13.2 million, which represents a year-over-year decrease of approximately 16% to 20%. This forecast reflects the Company’s current and preliminary view of the operating results, and is subject to future changes.

 

5



 

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 Tuesday, August 26, 2014 (which is 8:00 p.m. in China on Tuesday, August 26, 2014). 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:

 

75189253

U.S. toll-free:

 

+1-866-519-4004

Hong Kong toll-free:

 

800-930-346

International:

 

+65-6723-9381

China Mainland:

 

400-620-8038

Passcode:

 

Taomee

 

A live webcast and archive of the conference call will be available on the Investor Relations section of Taomee’s website at http://www.media-server.com/m/p/9zcgqdg8. A telephone replay of the call will be available after the conclusion of the conference call at 11:00 a.m. ET on August 26, 2014 through 09:59 a.m. ET, September 3, 2014. The dial-in details for the telephone replay are:

 

Conference ID:

 

75189253

International:

 

+612-8199-0299

 

6



 

China:

 

400-6322-162

 

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 interactive toys and trading cards. Its online community regularly achieves top search ranking in mainland 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

 

7



 

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.

 

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

 

 

 

June 30

 

March 31

 

 

 

2014

 

2014

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

104,352,136

 

$

107,892,293

 

Short term investment

 

 

2,993,773

 

Accounts receivable, net

 

2,619,406

 

2,241,671

 

Inventory

 

567,341

 

721,685

 

Income tax recoverable

 

1,508,084

 

622,478

 

Due from related parties

 

2,348,378

 

2,296,576

 

Prepayments and other current assets

 

5,766,358

 

4,262,809

 

Deferred tax assets, current

 

4,128,238

 

4,128,708

 

Total current assets

 

121,289,941

 

125,159,993

 

 

 

 

 

 

 

Investment in equity investees

 

14,074,861

 

14,255,765

 

Property and equipment, net

 

1,910,457

 

1,826,746

 

Prepayments for land use rights and building purchase

 

2,989,312

 

2,989,652

 

Acquired intangible assets

 

1,229,906

 

1,057,541

 

Other assets

 

2,717,664

 

2,346,760

 

Total assets

 

$

144,212,141

 

$

147,636,457

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,067,617

 

$

2,350,381

 

Advance from customers

 

9,797,917

 

8,380,110

 

Due to related parties

 

461,337

 

313,381

 

Deferred revenue

 

12,048,012

 

12,587,980

 

Deferred tax liabilities, current

 

1,742,161

 

1,742,359

 

Accrued expenses and other current liabilities

 

5,314,824

 

5,451,834

 

Total current liabilities

 

31,431,868

 

30,826,045

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Taomee Holdings Limited shareholders’ equity Ordinary shares ($0.00002 par value; 875,000,000 shares authorized; 747,974,297 and 745,555,104 shares issued; 708,000,756 and 719,230,564 outstanding as of June 30, 2014 and March 31, 2014, respectively)

 

14,960

 

14,911

 

Treasury stock (at cost)

 

(11,011,879

)

(7,212,059

)

Additional paid-in capital

 

75,280,861

 

74,716,506

 

Retained earnings

 

44,530,764

 

45,350,696

 

Accumulated other comprehensive income

 

3,774,096

 

3,791,133

 

Taomee Holdings Limited shareholders’ equity

 

112,588,802

 

116,661,187

 

Noncontrolling interests

 

191,471

 

149,225

 

Total equity

 

$

112,780,273

 

$

116,810,412

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

144,212,141

 

$

147, 636,457

 

 

9



 

Taomee Holdings Limited - Unaudited Consolidated Statements of Operations

 

 

 

In USD, except for share data

 

 

 

For three months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2014

 

2014

 

2013

 

Revenues:

 

 

 

 

 

 

 

Online business, net

 

$

8,385,495

 

$

9,373,070

 

$

8,635,407

 

Offline business, net

 

2,159,864

 

2,323,759

 

3,404,026

 

Total net revenues

 

10,545,359

 

11,696,829

 

12,039,433

 

 

 

 

 

 

 

 

 

Cost of services

 

 

 

 

 

 

 

Online business

 

(1,697,608

)

(1,929,671

)

(1,767,903

)

Offline business

 

(1,332,060

)

(1,223,634

)

(1,742,080

)

Total cost of services

 

(3,029,668

)

(3,153,305

)

(3,509,983

)

 

 

 

 

 

 

 

 

Gross profit

 

7,515,691

 

8,543,524

 

8,529,450

 

 

 

 

 

 

 

 

 

Operating income (expenses):

 

 

 

 

 

 

 

Product development

 

(3,449,780

)

(3,202,027

)

(3,309,258

)

Sales and marketing

 

(2,920,316

)

(2,039,257

)

(2,381,940

)

General and administrative

 

(3,072,832

)

(3,642,791

)

(2,950,988

)

Impairment loss on acquired intangible assets

 

 

(116,114

)

(865,910

)

Other operating income

 

147,346

 

984,567

 

448,631

 

Total operating expenses

 

(9,295,582

)

(8,015,622

)

(9,059,465

)

 

 

 

 

 

 

 

 

Income (Loss) from operations

 

(1,779,891

)

527,902

 

(530,015

)

 

 

 

 

 

 

 

 

Interest income

 

639,340

 

592,635

 

631,997

 

Other income (expenses), net

 

109,650

 

(583,216

)

188,104

 

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

 

(1,030,901

)

537,321

 

290,086

 

 

 

 

 

 

 

 

 

Income tax benefit/(expense)

 

374,068

 

(92,286

)

141,211

 

 

 

 

 

 

 

 

 

Share of profit/(loss) in equity method investments

 

(180,905

)

42,098

 

(73,195

)

Net income/(loss)

 

(837,738

)

487,133

 

358,102

 

 

 

 

 

 

 

 

 

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

 

(17,806

)

(9,586

)

13,740

 

 

 

 

 

 

 

 

 

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

 

$

(819,932

)

$

496,719

 

$

344,362

 

Earnings/(Loss) per ADS

 

 

 

 

 

 

 

-Basic

 

$

(0.02

)

$

0.01

 

$

0.01

 

-Diluted

 

$

(0.02

)

$

0.01

 

$

0.01

 

Weighted average number of shares used in calculation

 

 

 

 

 

 

 

- Basic

 

710,655,033

 

722,760,411

 

731,446,938

 

- Diluted

 

710,655,033

 

737,488,586

 

744,821,217

 

Weighted average number of ADS used in calculation

 

 

 

 

 

 

 

- Basic

 

35,532,752

 

36,138,021

 

36,572,347

 

- Diluted

 

35,532,752

 

36,874,429

 

37,241,061

 

 

10



 

Taomee Holdings Limited - Unaudited Consolidated Other Comprehensive Income

 

 

 

In USD,
For three months ended

 

 

 

June 30,
2014

 

March 31,
2014

 

June 30,
2013

 

Net income/(loss)

 

$

(837,738

)

$

487,133

 

$

358,102

 

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

 

(17,037

)

(551,622

)

822,028

 

Comprehensive income/(loss)

 

(854,775

)

(64,489

)

1,180,130

 

 

 

 

 

 

 

 

 

Comprehensive income/(loss) attributable to noncontrolling interest

 

(17,806

)

(9,586

)

13,740

 

 

 

 

 

 

 

 

 

Comprehensive income/(loss) attributable to Taomee Holdings Limited

 

$

(836,969

)

$

(54,903

)

$

1,166,390

 

 

11



 

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

 

 

 

In USD, except for share data
For three months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2014

 

2014

 

2013

 

Reconciliation from Non-GAAP measures to GAAP measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(235,964

)

$

1,183,394

 

$

1,551,513

 

Share-based compensation

 

(583,968

)

(570,561

)

(341,241

)

Impairment loss on acquired intangible assets

 

 

(116,114

)

(865,910

)

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

 

$

(819,932

)

$

496,719

 

$

344,362

 

 

 

 

 

 

 

 

 

Non-GAAP earnings/(loss) per ADS

 

 

 

 

 

 

 

-Basic

 

$

(0.01

)

$

0.03

 

$

0.04

 

-Diluted

 

$

(0.01

)

$

0.03

 

$

0.04

 

 

12


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