Form 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of March 2009
Commission File Number: 001-33759
GIANT INTERACTIVE GROUP INC.
2/F No. 29 Building, 396 Guilin Road
Shanghai 200233
Peoples Republic of China
(Address of principal executive office)
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 ¨
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): ¨
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): ¨
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 ¨ 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
Giant Interactive Group Inc.
Form 6-K
TABLE OF CONTENTS
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Exhibit 99.1 2008 Fourth Quarter and Fiscal Year Results Presentation dated March 5, 2009 |
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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.
Giant Interactive Group Inc. | ||||
By: | /s/ Eric He | |||
Name: | Eric He | |||
Title: | Chief Financial Officer | |||
Date: March 5, 2009 |
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HK000NN7 2008 Fourth Quarter and Fiscal Year Results Presentation March 5, 2009 2008 Fourth Quarter and Fiscal Year Results Presentation March 5, 2009 |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 2 Safe Harbor Statement and Currency Convenience Translation Safe Harbor Statement and Currency Convenience Translation Safe Harbor Statement Statements in this release contain 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 Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends,
plans, believes, estimates and similar statements and among others, include our the timing for our game initiatives in 2009, anticipated benefits as a result of our Win@Giant incubation program, our continued efforts to
successfully operate and adjust features of our existing games, anticipated benefits of our
adjusted monetization structure for ZT Online and launch of ZT Online in Vietnam, our ability to successfully commercially launch and operate ZT Online II, King of Kings III and represent only our belief regarding future events, many of which, by their nature, are inherently uncertain
and outside of our control. Our actual results and financial condition and other
circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Among the factors that could cause our actual results to differ from what we currently anticipate may include failure by ZT
Online gamers to resume in-game spending or continue in-game spending as recent levels following the restructuring of the games monetization model in the third quarter 2008, our
ability to develop, purchase or license additional online games that are attractive to our
players, our ability to develop and successfully launch expansion packs for our online games, our ability to adjust and enhance our online games to users preferences to generate revenues, our dependence on one online game, which currently accounts for the majority of our historical
net revenues, our ability to respond to competition, our ability to adjust to the current world
economic crisis, our need to implement and maintain effective internal control over financial reporting, our limited operating history and unproven long-term potential of our online game business model, our uncertainties with respect to the PRC legal and regulatory
environments and volatility in the markets we operate in. The financial information contained in this slide presentation should be read in conjunction with the consolidated financial
statements and notes thereto included in our annual report on Form 20F for the fiscal year
2007, as filed with the Securities and Exchange Commission on June 18, 2008, and is available on the Securities and Exchange Commission's website at www.sec.gov. For additional information on these and other important factors that could adversely affect our business,
financial condition, results of operations and prospects, see "Risk Factors" beginning
on page 7 of our annual report for fiscal year 2007. Our actual results of operations for the third quarter of 2008 are not necessarily indicative of our operating results for any future periods. Any projections in this slide presentation are based on limited information currently
available to us, which is subject to change. Although such projections and the factors
influencing them will likely change, we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this slide presentation. Such information speaks only as of the date of
this slide presentation. Currency Convenience Translation This slide presentation contains translations of certain Renminbi (RMB) amounts into US dollars (US$) at
the rate of US$1.00 to RMB6.8346, which was the noon buying rate as of December 31, 2008 in the
City of New York for cable transfers in Renminbi per US dollar as certified for customs purposes by the Federal Reserve Bank of New York. We make no representation that the Renminbi or US dollar amounts referred to in this slide presentation could have
been, or could be, converted into US dollars at such rate or at all. Empire
of Sports and our ability to continue to grow our business and build
long-term shareholder value. These forward-looking statements are not historical facts but instead |
Giant Interactive
Group A Leading Online Game Developer & Operator Giant Interactive Group A Leading Online Game Developer & Operator © 2009 Giant Interactive Group, Inc. All Rights Reserved |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 4 Giant: NYSE Listed Giant: NYSE Listed Shanghai, China Headquarters: Over 3,500 including 1,800 liaison personnel Employees: www.ga-me.com About Giant: Approximately 226 Million Outstanding Shares: US$1.5
Billion March 4, 2009 Market Cap: GA Ticker: November 1, 2007 NYSE IPO: Investor Information: |
© 2009 Giant Interactive Group, Inc. All Rights Reserved Key Operational and Financial Highlights Key Operational and Financial Highlights © 2009 Giant Interactive Group, Inc. All Rights Reserved |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 6 Key Quarterly Operating Metrics Key Quarterly Operating Metrics Active Paying Accounts (APA) 1,405 1,447 937 1,290 1,760 986 1,248 1,318 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 282 273 286 325 309 305 295 320 0 50 100 150 200 250 300 350 400 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Average Revenue per User (ARPU) 3Q08 figures include ZT Online, ZT Online PTP, ZT Online Classic
Edition, and Giant Online 4Q07 to 2Q08 figures include ZT Before 4Q07, all figures are ZT Online only Average Concurrent Users (ACU) 512 543 556 450 620 546 481 515 0 100 200 300 400 500 600 700 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Peak Concurrent Users (PCU) 1,073 888 983 2,339 1,578 1,505 1,646 874 0 500 1,000 1,500 2,000 2,500 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 ZT Online PTP and Giant Online Online, |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 7 Strong Profitability and High Margins Strong Profitability and High Margins Net Income 42.5 45.8 19.7 32.6 51.1 48.3 38.7 34.7 0 10 20 30 40 50 60 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 59.6 51.7 39.1 48.6 54.1 67.3 73.6 41.7 0 10 20 30 40 50 60 70 80 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Net Revenue Gross Profit Margin 85.7% 84.0% 91.2% 88.6% 89.2% 88.8% 89.6% 80.1% 60% 65% 70% 75% 80% 85% 90% 95% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Net Income Margin 76.8% 82.2% 50.6% 71.4% 71.6% 71.8% 69.5% 78.2% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 8 Q4 2008 Key Financial Highlights Q4 2008 Key Financial Highlights -5.3% 0.19 125.0% 0.08 0.18 Basic EPS (US$) 0.0% 0.18 125.0% 0.08 0.18 Diluted EPS (US$) Y-o-Y % Q4 2007 US$ Q-o-Q % Q3 2008 US$ -8.2% -9.4% -13.0% -23.4% -11.7% -20.5% -8.7% -18.8% Y-o-Y % 1.39 126.5% 0.56 1.26 Basic EPS (RMB) 0.54 134.1 105.2 107.3 212.5 52.7 265.2 Q3 2008 RMB 42.5 31.2 12.1 43.4 8.3 51.7 Q4 2008 US$ 1.23 290.3 213.6 82.9 296.5 56.7 353.1 Q4 2008 RMB 1.33 333.8 278.9 93.9 372.8 62.0 434.8 Q4 2007 RMB 128.1% Diluted EPS (RMB) 82.2% 116.5% Net Income 60.5% 103.0% Income from Operations -22.7% Operating Expenses 84.0% 39.5% Gross Profit 7.6% Cost of Services 33.2% Total Net Revenue Margins Q-o-Q % (In millions, except EPS data) |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 9 FY2008 Key Financial Highlights FY2008 Key Financial Highlights -8.1% 0.74 0.68 Basic EPS (US$) -8.3% 0.72 0.66 Diluted EPS (US$) Y-o-Y % FY2007 US$ FY2008 RMB FY2008 US$ -13.8% 5.40 4.65 Basic EPS (RMB) 5.25 1,136.3 1,079.8 273.7 1,353.5 174.1 1,527.5 FY2007 RMB 162.9 141.6 59.8 201.4 31.9 233.3 FY2008 US$ 4.49 1,113.6 968.0 408.8 1,376.8 217.9 1,594.7 FY2008 RMB -14.5% Diluted EPS (RMB) 69.8% -2.0% Net Income 60.7% -10.4% Income from Operations 49.4% Operating Expenses 86.3% 1.7% Gross Profit 25.2% Cost of Services 4.4% Total Net Revenue Margins Y-o-Y % (In millions, except EPS data) |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 10 Balance Sheet Balance Sheet 6,130.0 5,459.3 670.7 670.7 6,130.0 5,826.6 5,236.3 September 30, 2008 RMB 878.3 786.2 92.1 92.1 878.2 832.0 741.5 December 31, 2008 US$ 6,002.4 5,373.1 629.3 629.3 6,002.4 5,686.1 5,068.1 December 31, 2008 RMB 6,305.5 Shareholders Equity 7,587.7 Total Liability and Shareholders Equity 1,282.2 Total Liabilities 1,282.2 Current Liabilities 7,587.7 Total Assets 7,373.5 Current Assets 7,295.5 Cash, Cash Equivalents and Short-Term Investments December 31, 2007 RMB (In millions) |
© 2009 Giant Interactive Group, Inc. All Rights Reserved Business Operation Updates Business Operation Updates © 2009 Giant Interactive Group, Inc. All Rights Reserved |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 12 Recent Business Highlights Recent Business Highlights Continued optimizing Giant Online features; official version expected in 2009 ZT Online players adapting to monetization adjustment with enhanced features; ZT Online gaining solid users base in Vietnam Empire of Sports launched into closed beta testing (Prologue) in Europe in December 2008; limited closed beta testing in China expected at the end of 2Q09 Launched Win@Giant incubation program to attract innovation and creativity for potential blockbuster pipeline games 1 1 3 3 4 4 2 2 5 5 King of Kings III continues detailed game optimizations; limited closed beta testing in China expected at the end of 2Q09 6 6 As of December 31, 2008, Giant has repurchased 14,947,200 ADSs for total consideration of US$97.7 million, out of the $150 million share repurchase program 7 7 Cash dividend declared for FY2008 of US$0.18 per share for shareholders of record date as of March 27, 2009 and estimated payment date of April 10, 2009 |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 13 Enhancing Our Product Portfolio Enhancing Our Product Portfolio Limited closed beta testing in China to launch at the end of 2Q09 GA acquired rights to operate in China in 2007 Currently being tailored and optimized for the Chinese market, core game design complete King of Kings III Beta testing in China to launch at the end of 2Q09 Sequel to ZT Online Self-developed Free-To-Play 2D MMORPG Enhanced graphics, sound effects, # of professions, animation, etc. ZT Online II Official version to launch in 2009 Open beta testing launched at end of Q108 Frequent updates made based on player feedback Giant Online Limited closed beta testing in China to launch at the end of 2Q09 GA acquired rights to operate in China in early 2008 Officially launched in Europe in December 2008 Currently being tailored and optimized for the Chinese market Empire of Sports New expansion pack to roll out in 1H09
Launched in January 2006 Multiple expansion packs introduced since launch
ZT Online Classic Edition available for gamers Monetization restructuring in Q308 Now also available in Vietnam ZT Online Planned Upcoming Initiatives Game History and Milestones Games |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 14 Stabilizing Marketing Efforts in Q408 Over 420 liaison offices Over 1,800 dedicated liaison personnel Over 280 distributors 116,500 retail outlets Penetration of all large cities and almost all
provinces in China Focus on penetrating medium / small cities with continued Internet and on-site promotional events Reduced advertising costs associated with the revised monetization features of ZT Online Maximize Maximize Player Player Awareness Awareness and and Game Game Recognition Recognition to to Improve Improve Penetration Penetration Q4 2008 Marketing and Distribution Network Q4 2008 Marketing and Distribution Network |
© 2009 Giant Interactive Group, Inc. All Rights Reserved Business Outlook Business Outlook © 2009 Giant Interactive Group, Inc. All Rights Reserved |
© 2009 Giant Interactive Group, Inc. All Rights Reserved 16 Player Segmentation Based on Game Features and Spending Preferences to Increase Player Loyalty and to Extend Game Lifecycles Enhance Online Community and Expand Geographical Coverage to Grow Our Player Base Pursue Opportunities for Acquisitions, Strategic Joint Ventures and Opportunistic Investments 1 1 2 2 3 3 Growth Strategies Growth Strategies To Become the Largest Online Game Developer and Operator in Asia To Become the Largest Online Game Developer and Operator in Asia |
HK000NN7 NYSE: GA Thank you www.ga-me.com NYSE: GA Thank you www.ga-me.com |