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Jiayuan Announces Second Quarter 2013 Financial Results

           Jiayuan Announces Second Quarter 2013 Financial Results

PR Newswire

BEIJING, Aug. 21, 2013

BEIJING, Aug. 21, 2013 /PRNewswire-FirstCall/ -- Jiayuan.com International
Ltd. ("Jiayuan" or the "Company") (NASDAQ: DATE), operator of the largest
online dating platform in China, today announced its unaudited financial
results for the second quarter ended June 30, 2013.

Second Quarter 2013 Highlights^1

  oNet revenues for the second quarter 2013 were RMB119.3 million (US$19.4
    million), a year-over-year increase of 20.0% and a sequential increase of
    7.0% compared to the first quarter of 2013.
  oOperating income for the second quarter 2013 was RMB12.5 million (US$2.0
    million), a decline of 32.4% compared to RMB18.5 million for the
    corresponding quarter of 2012, and an increase of 33.5% compared to RMB9.4
    million for the previous quarter. The year-over-year decrease was
    primarily due to increases in selling and marketing expenses and R&D
    expenses. The sequential increase was a result of growth in the Company's
    online business and better cost control. Excluding share-based
    compensation, non-GAAP^2 operating income for the second quarter 2013 was
    RMB16.0 million (US$2.6 million), compared to non-GAAP operating income of
    RMB19.0 million for the corresponding quarter of 2012, representing a
    year-over-year decrease of 15.8% and an increase of 18.0% compared to
    RMB13.5 million for the previous quarter.
  oNet income for the second quarter 2013 was RMB13.1 million (US$2.1
    million), a decrease of 36.4% compared to RMB20.5 million for the
    corresponding quarter of 2012, and an increase of 64.6% compared to RMB7.9
    million for the previous quarter. Excluding share-based compensation,
    non-GAAP net income for the second quarter of 2013 was RMB16.5 million
    (US$2.7 million), with a decrease of 21.4% compared to RMB21.0 million for
    the corresponding quarter of 2012, and an increase of 36.5% compared to
    RMB12.1 million for the previous quarter.

"We saw healthy growth in the second quarter with net revenues increasing
20.0% year-over-year as our mobile product andpersonalized matchmakingoffers
continued to grow in popularity," said Mr. Linguang Wu, CEO of Jiayuan. "We
also further enhanced online user experience during the quarter through an
upgrade of ouronline system to better identify and block unhealthy user
behavior."

Mr. Wu added, "In the second half of this year, we expect to introduce new
mobile products addressing the specific needs and spending patterns of our
rapidly growing mobile user base. As greater numbers of Chinese singles from
different age groups, income levels and regions look for love online through
multiple platforms, we are confident that Jiayuan has the right strategy in
place to grow our user base while increasing monetization over time."

"As China's leader in online dating, Jiayuan will continue to prioritize user
experience by ensuring that users have a safe environment in which to look for
love online," commented Mr. Shang Koo, CFO of Jiayuan. "In the second half of
this year, we look forward to bringing ourpersonalized matchmaking service to
new high growth markets and to launching exciting new products optimized for
the mobile users, which we expect will contribute to top-line growth in the
medium term."

Second Quarter 2013 Operational Results

The number of average monthly active user accounts^3 for the second quarter
2013 was 5,321,383, compared to 5,333,341 for the corresponding period of 2012
and 5,188,638 for the previous quarter.

The number of average monthly paying user accounts^4 for the second quarter
2013 was 1,326,370, compared to 1,222,880 for the corresponding period of 2012
and 1,279,063 for the previous quarter.

Average monthly revenue per paying user ("ARPU") for online services for the
second quarter 2013 was RMB26.6, compared to RMB23.4 for the corresponding
period in 2012 and RMB26.1 for the previous quarter.

Second Quarter 2013 Financial Results

Jiayuan reported net revenues of RMB119.3 million (US$19.4 million) for the
second quarter of 2013, representing a year-over-year increase of 20.0% from
RMB99.4 million and an increase of 7.0% from RMB111.5 million in the previous
quarter. This was primarily due to strong growth in online services as well as
continued momentum in thepersonalized matchmaking business.

  oOnline services contributed RMB105.9 million (US$17.3 million), or 88.8%
    of net revenues for the second quarter of 2013, representing a
    year-over-year increase of 23.1% from RMB86.0 million and an increase of
    5.7% from RMB100.2 million for the previous quarter. Both the
    year-over-year and sequential increase were mainly attributable to the
    increases in the number of paying user accounts and ARPU.
  oEvents and VIP services, which comprise Jiayuan'spersonalized matchmaking
    business, contributed RMB12.9 million (US$2.1 million), or 10.8% of net
    revenues for the second quarter of 2013, representing a year-over-year
    increase of 0.9% from RMB12.8 million, and an increase of 13.8% from
    RMB11.3 million for the previous quarter. The sequential revenue growth
    was primarily due to an increase in the number ofpersonalized matchmaking
    customers served in the second quarter of 2013.

Cost of revenues for the second quarter of 2013 was RMB44.4 million (US$7.2
million), representing a year-over-year increase of 27.8% from RMB34.7
million, and an increase of 17.0% from RMB37.9 million for the previous
quarter. The year-over-year increase was in line with the growth of online
services and the expansion of the Company'spersonalized matchmakingbusiness.
The sequential increase was primarily due to increased investment in the
Company'spersonalized business and higher transaction costs related to
payments received through the mobile platform.

Gross profit  for the second quarter of 2013 was RMB74.9 million (US$12.2
million), representing a year-over-year increase of 15.8% from RMB64.7 million
and an increase of 1.8% from RMB73.6 million for the previous quarter.

Selling and marketing expenses were RMB44.5 million (US$7.3 million) for the
second quarter of 2013, representing a year-over-year increase of 49.5% from
RMB29.8 million and an increase of 0.9% from RMB44.1 million for the previous
quarter. The year-over-year increase was primarily related to the rising cost
per advertisement and increased brand advertising spending in the quarter.

General and administrative expenses were RMB12.4 million (US$2.0 million) for
the second quarter of 2013, representing a marginal year-over-year increase
from RMB12.3 million and a decrease of 15.8% from RMB14.8 million for the
previous quarter. The sequential decrease was due to improved cost control.

Research and development expenses were RMB5.4 million (US$884,000) for the
second quarter of 2013, representing a year-over-year increase of 31.2% from
RMB4.1 million, and a slight increase from RMB5.3 million for the previous
quarter. The year-over-year increase was primarily due to continued investment
in product development in line withJiayuan's segmentation strategy and
back-end system optimization to improve user experience and matching results.

Operating income for the second quarter of 2013 was RMB12.5 million (US$2.0
million), representing a decrease of 32.4% from RMB18.5 million for the
corresponding quarter of 2012, and an increase of 33.5% from RMB9.4
millionfor the previous quarter. Excluding share-based compensation expenses,
non-GAAP operating income for the second quarter of 2013 was RMB16.0 million
(US$2.6 million), representing a decrease of 15.8% compared to non-GAAP
operating income of RMB19.0 million for the corresponding quarter of 2012 and
an increase of 18.0% compared to non-GAAP operating income of RMB13.5 million
for the previous quarter. The year-over-year decrease was due to higher
selling and marketing expenses as well as R&D expenses. The sequential
increase was a result of growth in the online business and better cost
control.

Foreign currency exchange net gain for the second quarter of 2013 was
RMB675,000 (US$110,000), compared to a foreign currency exchange net loss of
RMB1.2 million for the corresponding quarter of 2012 and a foreign currency
exchange net gain of RMB135,000 for the previous quarter. The foreign currency
exchange net gain for the second quarter of 2013 was mainly attributable to
RMB appreciation against the U.S. dollar during the period. Part of the
proceeds from Jiayuan's IPO was converted into RMB and is being held by its
overseas entities whose functional currency is the U.S. dollar.

Net income for the second quarter of 2013 was RMB13.1 million (US$2.1
million), compared to RMB20.5 million for the corresponding quarter of 2012
and RMB7.9 million for the previous quarter. Excluding share-based
compensation expenses, non-GAAP net income for the second quarter of 2013 was
RMB16.5 million (US$2.7 million), compared to RMB21.0 million for the
corresponding quarter of 2012, and RMB12.1 million for the previous quarter.

Basic and diluted net income per ADS^5 for the second quarter of 2013 were
RMB0.44 (US$0.07) and RMB0.43 (US$0.07), respectively, compared to basic and
diluted net income per ADS of RMB0.66 and RMB0.64 for the corresponding
quarter of 2012 and basic and diluted net income per ADS of RMB0.27 and
RMB0.26, respectively, for the first quarter of 2013.

Excluding share-based compensation expenses, non-GAAP basic and diluted net
income per ADS for the second quarter of 2013 were RMB0.55 (US$0.09) and
RMB0.54 (US$0.09) respectively, compared to non-GAAP basic and diluted net
income per ADS of RMB0.67 and RMB0.65 for the corresponding quarter of 2012
and non-GAAP basic and diluted net income per ADS of RMB0.41 and RMB0.40,
respectively, for the first quarter of 2013.

As of June 30, 2013, Jiayuan had cash and cash equivalents and short-term
deposits of RMB511.0 million (US$83.3 million). Cash flows from operating
activities for the second quarter of 2013 were RMB32.0 million (US$5.2
million).

In the second quarter of 2013, Jiayuan paid a special cash dividend in the
amount of US$0.26 per ADS. The aggregate amount of this special cash dividend
is US$7.8 million, which is 46.5% of Jiayuan's non-GAAP net income generated
in the third and fourth quarters of 2011 and full-year 2012. The company
defines non-GAAP net income as net income attributable to the Company
excluding share-based compensation expenses.

The weighted average number of ADSs outstanding used in calculating diluted
net income per ADS and non-GAAP diluted net income per ADS in the second
quarter of 2013 was 30.5 million. As of June 30, 2013, the Company had 32.7
million ADSs outstanding, including 0.5 million ADSs issued to the depository
for future exercise of options.

Third Quarter 2013 Outlook

Jiayuan currently expects to generate net revenues in the range of RMB125
million to RMB127 million for the third quarter of 2013. This forecast
reflects Jiayuan's current and preliminary view, which is subject to change.

Conference Call Information

Jiayuan's management will host a conference call to discuss its results and
outlook today, August 21, 2013, at 8:00 p.m. U.S. Eastern Time (8:00 a.m.
August 22, 2013 Beijing/Hong Kong Time).

Dial-in details for the earnings conference call are as follows:

United States:                    +1-845-6750-438
United States (Toll-free):        +1-855-5008-701
Hong Kong:                       +852-3051-2745
China:                           400-1200-654
International/All other regions: +65-6723-9385 
Passcode:                         27586052

A replay of the conference call may be accessed by phone at the following
number until August 28, 2013:

International: +61-2-8199-0299
Passcode:       27586052

A live and archived webcast of the conference call will be available at
http://ir.jiayuan.com.

About Jiayuan

Jiayuan.com International Ltd. ("Jiayuan") (NASDAQ: DATE) operates the largest
online dating platform in China. Jiayuan is committed to providing a trusted,
effective, and user-focused online dating platform that addresses the dating
and marriage needs of China's rapidly growing urban singles population. As a
pioneer in China's online dating market, Jiayuan ranks first in terms of
number of unique visitors, average time spent per user and average page views
per user among all online dating websites in China in 2012, according to
iResearch. Jiayuan recorded an average of 5.3 million monthly active user
accounts in the second quarter of 2013. Every two of Jiayuan's American
Depositary Shares represent three ordinary shares.

For more information, please visit http://ir.jiayuan.com.

Forward-Looking Statements

This press release contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. 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," "confident" and similar
statements. Jiayuan may also make written or verbal forward-looking statements
in its periodic reports to the U.S. Securities and Exchange Commission, in its
annual report to shareholders, in press releases and other written materials
and in verbal statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including statements about
our beliefs and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following: our
growth strategies; our future business development, including development of
new products and services; our ability to attract and retain users;
competition in the Chinese online dating markets; changes in our revenues and
certain cost or expense items as a percentage of our revenues; the outcome of
any litigation or arbitration; the expected growth of the number of Internet
and broadband users in China; Chinese governmental policies relating to the
Internet and online dating websites and general economic conditions in China
and elsewhere. Further information regarding these and other risks is included
in our documents filed with the U.S. Securities and Exchange Commission.
Jiayuan does not undertake any obligation to update any forward-looking
statement, except as required under applicable law. All information provided
in this press release is as of the date of the press release, and Jiayuan
undertakes no duty to update such information, except as required under
applicable law.

Non-GAAP Financial Measures

We disclose non-GAAP financial measures of operating income, net income and
net income per ADS, each of which is adjusted to exclude share-based
compensation expense. We review non-GAAP financial measures to obtain an
additional understanding of our operating performance. We also believe it is
useful supplemental information for investors and analysts to assess our
operating performance without the effect of non-cash share-based compensation
expense, which have been and will continue to be significant recurring
expenses in our business. For a reconciliation of each of these non-GAAP
financial measures to the most directly comparable GAAP financial measures,
please see "Reconciliation To Unaudited Condensed Consolidated Statement of
Comprehensive Income" included in this press release.

However, the use of non-GAAP financial measures has material limitations as an
analytical tool. One of the limitations of using non-GAAP financial measures
is that it does not include all items that impact our non-GAAP financial
measures during the period. In addition, because non-GAAP financial measures
are not calculated in the same manner by all companies, it may not be
comparable to other similar titled measures used by other companies. In light
of the foregoing limitations, you should not consider non-GAAP financial
measures in isolation from or as an alternative to GAAP financial measures.
Management compensates for this limitation by providing specific information
regarding the GAAP amount excluded from the non-GAAP measure.

    This announcement contains translations of certain Renminbi ("RMB")
    amounts into U.S. dollar ("US$") amounts at specified rates solely for the
    convenience of readers. Unless otherwise noted, all translations from RMB
[1] amounts into US$ amounts as of and for the quarter ended June 30, 2013,
    were made at an exchange rate of RMB6.1374 to US$1.00, representing the
    rate as certified by the H.10 weekly statistical release of the Federal
    Reserve Board on June 28, 2013. Jiayuan's functional currency is U.S.
    dollar and reporting currency is RMB.
    Explanation of Jiayuan's non-GAAP financial measures and related
[2] reconciliations to GAAP financial measures are included in the
    accompanying "Non-GAAP Financial Measures'' and "Reconciliations to
    Unaudited Condensed Consolidated Statements of Comprehensive Income".
    Active user accounts are registered user accounts through which registered
    users have logged in to the Jiayuan platforms at least once within a
    calendar month, in the case of user accounts registered in prior months,
[3] or on at least two separate days within a calendar month, including the
    day of completion of the registration process, in the case of user
    accounts newly registered in the calendar month. In the second quarter of
    2013, average monthly active user accounts include active user accounts
    with izhenxin.com and juedui100.com.
[4] In the second quarter of 2013, average monthly paying user accounts
    include paying user accounts with izhenxin.com and juedui100.com.
    Basic and diluted net income per ADS are calculated based on net income
[5] attributable to ordinary shareholders and the corresponding basic and
    diluted number of ADSs, assuming that, during each period presented, every
    two ADSs represent three ordinary shares of Jiayuan.

For investor and media inquiries, please contact:
Beijing
Shirley Zhang
Jiayuan.com International Ltd.
+86 (10) 6442-2321
ir@jiayuan.com 
Yue Yu
Brunswick Group LLP
+86 (10) 5960-8600
jiayuan@brunswickgroup.com
New York
Cindy Zheng
Brunswick Group LLP
+1 (212) 333-3810
jiayuan@brunswickgroup.com



JIAYUAN.COM INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
                                       June 30,  March 31,  June 30,
                                       2012      2013       2013      2013
                                       RMB       RMB        RMB       US$
ASSETS
Current assets:
Cash and cash equivalents              401,093   397,195    434,583   70,809
Short-term deposits                    203,783   145,594    76,443    12,455
Term deposits, current portion         -         10,000     10,000    1,629
Available-for-sale securities          -         5,088      5,128     836
Accounts receivable, net               27,808    26,420     35,328    5,756
Deferred tax assets                    3,196     3,618      4,613     752
Prepaid expenses and other current
                                       13,774    20,521     18,066    2,944
assets
Total current assets                   649,654   608,436    584,161   95,181
Non-current assets:
 Term deposits                      10,000    -          -         -
  Property and equipment, net        25,138    99,109     102,030   16,624
 Intangible assets, net             -         4,447      4,288     699
  Goodwill                           -         789        789       129
Total assets                           684,792   712,781    691,268   112,633
LIABILITIES
Current liabilities:
 Deferred revenue, current portion  96,394    111,430    120,693   19,665
 Accounts payable                   107       164        785       128
 Accrued expenses and other
current                               31,087    29,216     35,277    5,748
 liabilities
 Income tax payable                 13,958    16,529     20,544    3,347
Total current liabilities              141,546   157,339    177,299   28,888
Non-current liabilities:
 Deferred revenue, non-current      760       1,394      725       118
portion
  Deferred tax liabilities           -         763        1,770     288

                                       142,306   159,496    179,794   29,294
Total liabilities
SHAREHOLDERS' EQUITY
Ordinary shares                        342       343        347       57
Additional paid-in capital             526,283   540,741    498,800   81,272
Less: Treasury shares                  (21,951)  (63,776)   (71,740)  (11,689)
Statutory reserves                     5,792     9,502      9,502     1,548
Retained earnings                      33,722    71,119     84,179    13,716
Accumulated other comprehensive loss   (1,702)   (4,644)    (9,614)   (1,565)
Total shareholders' equity             542,486   553,285    511,474   83,339
Total liabilities and shareholders'    684,792   712,781    691,268   112,633
equity



JIAYUAN.COM INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                   Three months ended,
                                   June30,2012  March31,2013  June 30, 2013
                                   RMB            RMB             RMB         US$
Net revenues                       99,376         111,509         119,270     19,433
Cost of revenues                   (34,720)       (37,939)        (44,384)    (7,231)
Gross profit                       64,656         73,570          74,886      12,202
Operating expenses:
Sellingandmarketingexpenses     (29,774)       (44,120)        (44,523)    (7,254)
General and administrative
                                   (12,270)       (14,777)        (12,444)    (2,028)
expenses
Research and development
                                   (4,136)        (5,314)         (5,425)     (884)
expenses
Total operating expenses           (46,180)       (64,211)        (62,392)    (10,166)
Operating income                   18,476         9,359           12,494      2,036
Interest income, net               3,628          2,260           2,459       401
Foreigncurrencyexchangegain,
                                   (1,229)        135             675         110
net
Other income/(expenses), net       1,210          (322)           1,501       245
Income before income tax           22,085         11,432          17,129      2,792
Income tax expenses                (1,547)        (3,496)         (4,069)     (663)
Net income                         20,538         7,936           13,060      2,129
Net income per ADS – Basic         0.66           0.27            0.44        0.07
Net income per ADS – Diluted       0.64           0.26            0.43        0.07
ADSsusedincomputingbasicnet  31,189,651     29,887,038      9,856,349   29,856,349
 income per ADS
ADSs used in computing diluted    32,189,392     30,599,249      30,475,950  30,475,950
 net income per ADS



JIAYUAN.COM INTERNATIONAL LTD.
RECONCILIATIONS TO UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN RMB THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                   Three Months Ended June 30, 2012        Three Months Ended March 31, 2013       Three Months Ended June 30, 2013
                                               Non-GAAP                                Non-GAAP                                Non-GAAP
                                   GAAP                        Non-GAAP    GAAP                        Non-GAAP    GAAP                        Non-GAAP
                                               Adjustments(a)                          Adjustments(a)                          Adjustments(a)
Operatingincome                   18,476      487             18,963      9,359       4,178           13,537      12,494      3,473           15,967
Net income                         20,538      487             21,025      7,936       4,178           12,114      13,060      3,473           16,533
BasicnetincomeperADS           0.66                        0.67        0.27                        0.41        0.44                        0.55
DilutednetincomeperADS         0.64                        0.65        0.26                        0.40        0.43                        0.54
ADSsusedincomputingbasicnet  31,189,651                  31,189,651  29,887,038                  29,887,038  29,856,349                  29,856,349
 income per ADS
ADSs used in computing diluted    32,189,392                  32,189,392  30,599,249                  30,599,249  30,475,950                  30,475,950
 net income per ADS
Note:
(a) To adjust for share-based compensation expense.

SOURCE Jiayuan.com International Ltd.

Website: http://www.Jiayuan.com
Website: http://ir.jiayuan.com
 
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