Youku Announces Second Quarter 2012 Unaudited Financial Results

Youku Inc. YOKU, China's leading Internet television company ("Youku" or the "Company"), today announced its unaudited financial results for the second quarter 2012. Second Quarter Highlights Net revenues were RMB387.4 million (US$61.0 million), a 96% increase from the corresponding period in 2011. Gross profit was RMB76.9 million (US$12.1 million), a 45% increase from the corresponding period in 2011. Non-GAAP gross profit, which is herein defined as gross profit excluding share-based compensation expenses, was RMB79.5 million (US$12.5 million) in the second quarter of 2012, a 48% increase from the corresponding period in 2011. Net loss was RMB62.8 million (US$9.9 million), as compared to a net loss of RMB28.1 million (US$4.4 million) for the same period in 2011. Non-GAAP net loss, which is herein defined as net loss excluding share-based compensation expenses and business combination related expenses, was RMB29.3 million (US$4.6 million) in the second quarter of 2012, as compared to the non-GAAP net loss of RMB20.8 million (US$3.3 million) in the corresponding period in 2011. This increase was primarily due to content price increase during 2011, which we amortize using accelerated method, broadening of our content portfolio, increase of number of employees as a result to rapid growth of our business and our continuous and expanded investment in product development in mobile, search, social and paid services. Basic and diluted loss per ADS, each representing 18 Class A ordinary shares, for the second quarter of 2012 amounted to RMB0.54 (US$0.09) and RMB0.54 (US$0.09), respectively. Cash, cash equivalents and short-term investments totaled RMB3.5 billion (US$546.6 million) as of June 30, 2012. Acquisition of property and equipment for the second quarter of 2012 was RMB22.6 million (US$3.6 million), as compared to RMB18.9 million (US$3.0 million) for the same period in 2011. Acquisition of intangible assets for the second quarter of 2012 was RMB51.6 million (US$8.1 million), as compared to RMB144.2 million (US$22.7 million) for the same period in 2011.