Company Overview

We are a leading and profitable mobile game company in China with the largest market share among mobile game developers in terms of revenues in 2010 and 2011, according to a March 2012 report prepared by Analysys International, an independent market research firm, or the Analysys Report. Spanning across development, operations, sales and distribution of mobile games, in 2011 our market share reached 18.7% in terms of revenues generated by all mobile game developers in China - greater than the combined market share of our nearest five competitors, according to the Analysys Report.

We pre-install our mobile games and game platforms on handsets that we design, which enhances our knowledge of user habits and preferences and allows us to quickly adapt to industry trends. We had approximately 30 million total paying user accounts during 2011 for feature phone single-player games and mobile social games, and approximately 741,000 for smartphone mobile social games. Total subscriptions for smartphone single-player games during 2011 were 9.6 million.

Our mobile games are available through major distribution channels such as China Mobile and popular mobile application stores. We have amassed a portfolio of over 450 mobile games as of March 31, 2012, of which 150 are self-developed and 300 were licensed from third-party developers. All of our feature phone games are self-developed, many of which are among the most popular, as measured by downloads, and highest grossing, as measured by revenues.