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Sky-mobi Limited Announces Unaudited Financial Results for the Fiscal Second Quarter 2014

Sky-mobi Limited Announces Unaudited Financial Results for the Fiscal Second
Quarter 2014

HANGZHOU, China, Nov. 18, 2013 (GLOBE NEWSWIRE) -- Sky-mobi Limited
("Sky-mobi" or the "Company") (Nasdaq:MOBI), a leading mobile application
store in China, today announced unaudited financial results for the fiscal
second quarter ended September 30, 2013 ("second quarter 2014").

Second Quarter 2014 Highlights

  *Total revenues decreased 16.6% to RMB116.6 million (US$19.1 million)
    compared to RMB139.8 million in the fiscal second quarter ended September
    30, 2012 ("the prior year period"). Revenues from smartphones represented
    33.6% of total revenues
    
  *Gross margin decreased to 23.3%, compared to 24.6% in the prior year
    period
    
  *Non-IFRS^1 gross margin decreased to 23.5%, compared to 25.3% in the prior
    year period
    
  *Loss from operations decreased to RMB2.3 million (US$0.4 million),
    compared to loss from operations of RMB15.3 million in the prior year
    period
    
  *Non-IFRS profit from operations increased to RMB0.7 million (US$0.1
    million), compared to non-IFRS loss from operations of RMB7.3 million in
    the prior year period
    
  *Net loss decreased to RMB4.4 million (US$0.7 million), compared to net
    loss of RMB11.7 million in the prior year period
    
  *Non-IFRS net loss decreased to RMB1.5 million (US$0.2 million), compared
    to non-IFRS net loss of RMB3.6 million in the prior year period
    
  *Basic and diluted loss per common share was RMB0.02 (US$0.00), which
    represents the equivalent of RMB0.13 (US$0.02) per ADS^2

  *Non-IFRS basic and diluted loss per common share was RMB0.00 (US$0.00),
    which represents the equivalent of RMB0.03 (US$0.01) per ADS

Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi, stated,
"We are pleased that our fiscal second quarter 2014 revenues exceeded the high
end of our prior guidance by approximately 11% due to stronger than expected
growth in our smartphone business. Anticipating the continued decline of the
feature phone market, we have continued to effectively reallocate cash flow
and resources away from our feature phone business and into development of our
smartphone platform. By focusing more heavily on growing our smartphone
business, we were able to see revenues from this line more than double
quarter-over-quarter to over RMB39.2 million, or 33.6% of total revenues. One
remarkable phenomenon behind this growth is that long-time Maopao community
users on feature phones are more comfortable migrating to smartphones using
the familiar features we offer them. As a result, this same group of users is
quickly developing increased digital consumption habits through our smartphone
Maopao platform. These impressive results demonstrate the strong growth and
monetization potential of our large Maopao community user base accumulated in
our feature phone business.

"We have proven our strategy of user penetration through two competitive
distribution channels: pre-installations with smartphone handset manufactures
and engagement with physical stores where we install mobile applications on
smartphones directly. By adding over 360,000 new users per day, these
initiatives have allowed us to grow to over 73.4 million users on our
smartphone platform. We believe the success achieved from this long-term
strategy will continue to be a significant entry barrier for our competitors
in the fast-growth, low-cost smartphone market. In addition, another key
element to strengthening our position in the smartphone business is our
content offering. We strive to provide enjoyable and entertaining content to
users in order to improve user experience and, in turn, deliver sustainable
financial and operational growth."

John Bi, Chief Financial Officer of Sky-mobi, commented, "We are pleased with
the accelerating growth in our smartphone business. Since we began to monetize
on our smartphone platform last quarter, this business has become an
increasingly important contributor that drives our top-line growth
significantly as well as our overall user base expansion. We continued to
implement cost control measures to maximize cash flow from our feature phone
operations, while allocating more resources to our smartphone business. In the
fiscal second quarter, we continued to maintain positive cash flow and had
RMB519 million cash and deposits as of September 30, 2013."

Financial Results for Second Quarter 2014

Total Revenues

Sky-mobi provides revenue breakdown in two forms: by handset type and by
source.

Revenues by handset type are broken down into "Feature phone revenues" and
"Smartphone revenues".

Revenues by source are broken down into "Revenues collected from carrier
channels", "Revenues collected from third party channels" and "Other
revenues".

                                        For the three months ended
                                        September 30,
                                        2012      2013     2013
In thousands                             (RMB)     (RMB)    (US$)
                                                         
Revenues by handset type:                                 
Feature phone revenues                   139,831   77,420   12,651
Smartphone revenues                      --      39,163   6,399
Total revenues                           139,831   116,583  19,050
                                                         
                                        
                                        For the three months ended
                                        September 30,
                                        2012      2013     2013
In thousands                             (RMB)     (RMB)    (US$)
                                                         
Revenues by source:                                       
Revenues collected from carrier channels 99,360    67,830   11,084
Revenues collected from third party                       
Channels                                 36,826    32,521   5,314
Other revenues                           3,645     16,232   2,652
Total revenues                           139,831   116,583  19,050

Total revenues for second quarter 2014 decreased 16.6% to RMB116.6 million
(US$19.1 million) from RMB139.8 million in the prior year period.Revenues
from the smartphone business amounted to RMB39.2 million (US$6.4 million),
representing 33.6% of the Company's total revenues in second quarter 2014. The
company's smartphone revenues as a percentage of total revenues more than
doubled from the fiscal first quarter ended June 30, 2013 due to the increased
user base and higher monetization rate on the smartphone business.

Revenues collected from carrier channels (which principally consist of
application store revenues) were RMB67.8 million (US$11.1 million) in second
quarter 2014, representing 58.2% of total revenues, decreasing 31.7% from
RMB99.4 million in the prior year period. The decrease in revenues collected
from carrier channels was primarily due to fewer user visits and downloads
from the feature phone Maopao application store resulting from the shrinking
feature phone market, partially offset by increased revenue from the Company's
smartphone Maopao application store and a higher monetization rate resulting
from direct cooperation with mobile operators. Sky-mobi had 700.5 million user
visits and 128.5 million smartphone application store downloads during the
second quarter 2014, increasing from 6.9 million and 10.2 million,
respectively, in the prior year period.

Due to a substantial increase in user visits and downloads on the Company's
smartphone Maopao application store, the Company's smartphone Maopao
application store generated approximately RMB28.9 million (US$5.0 million) in
second quarter 2014, representing 42.5% of total revenues collected from
carrier channels. The Company believes that its smartphone user visits and
downloads will increase steadily in future quarters as it expands its user
base.

Revenues collected from third party channels, which principally consist of
Maopao community revenues from both feature phone and smartphone handsets,
were RMB32.5 million (US$5.3 million), down 11.7% from the prior year period
and contributing 27.9% of total revenues in second quarter 2014. Sky-mobi had
5.1 million active members and 414.0 million member log-ins on the Maopao
Community during second quarter 2014, representing a decrease from 15.0
million active members and 778.4 million member log-ins in the prior year
period. Revenues from the Maopao Community decreased due to a decline in
active members and log-ins on feature phones, partially offset by an increase
in active members and log-ins on the Company's smartphone platform, which is
especially the case with loyal Maopao Community users migrating to
smartphones, and higher ARPU^1 on the Company's two most popular mobile social
games, "Fantasy of Three Kingdoms" and "Fairy Magic World", which are also
available on smartphone handsets. The Company expects that the Maopao
community revenues collected from smartphone handsets will continuously
contribute to its revenue collected from third party channels and that revenue
collected from third party channels will contribute a steady percentage of
total revenues in future quarters.

Other revenues were RMB16.2 million (US$2.7 million) in second quarter 2014,
increased significantly from RMB3.6 million the prior year period.The
increase was primarily due to the Company's strengthened efforts in developing
its promotional services on its Maopao platforms on feature phones and
smartphones, as well as growth of its application store and related services
outside of China.Other revenues consist of commissions from companies for
using feature phone and smartphone Maopao platforms to promote and sell
applications ("promotional income") as well as overseas revenues generated by
the Company's international mobile service providers.

Cost of Revenues and Gross Profit

Total cost of revenues for second quarter 2014 decreased 15.2% to RMB89.4
million (US$14.6 million) compared to RMB105.5 million in the prior year
period.

Total non-IFRS cost of revenues for second quarter 2014 decreased 14.7% to
RMB89.2 million (US$14.6 million) compared to RMB104.5 million in the prior
year period.

                                For the three months ended
                                September 30,
                                2012      2013     2013
In thousands                     (RMB)     (RMB)    (US$)
                                
Cost of revenues:                                 
Costs associated with payments                    
to industry participants         93,909    81,478   13,314
Direct costs                     11,542    7,939    1,297
Total cost of revenues:          105,451   89,417   14,611
Gross Margin                     24.6%     23.3%    
                                
Non-IFRS cost of revenues:                        
Costs associated with payments                    
to industry participants         93,909    81,478   13,314
Direct costs                     10,586    7,695    1,257
Total non-IFRS cost of revenues: 104,495   89,173   14,571
Non-IFRS Gross Margin            25.3%     23.5%    

Non-IFRS cost of revenues is defined as cost of revenues excluding share-based
compensation expenses. The discussion and analysis below focuses on non-IFRS
cost of revenues, which the Company believes more accurately reflects the
Company's operating performance than IFRS cost of revenues.

Non-IFRS costs associated with payments to industry participants decreased
13.2% to RMB81.5 million (US$13.3 million) in second quarter 2014, compared to
RMB93.9 million in the prior year period. This decrease was primarily due to
reduced channel costs, which were in-line with the decline in revenues, and
cost savings from dealing directly with mobile operators, partially offset by
increased content provider costs due to the higher sharing percentage with
smartphone content providers.

Non-IFRS direct costs decreased 27.3% to RMB7.7 million (US$1.3 million) in
second quarter 2014 compared to RMB10.6 million in the prior year period.
Non-IFRS direct costs included salaries and benefits, depreciation, office
expenses and utilities directly related to the operation of Maopao application
stores on feature phones and smartphones. The decrease was primarily due to a
reduction in overall headcount in the Company's feature phone market business,
which reflected the Company's strategy to focus on the smartphone market.

Non-IFRS gross profit for second quarter 2014 decreased 22.4% to RMB27.4
million (US$4.5 million) compared to RMB35.3 million the prior year period.
Non-IFRS gross margin in second quarter 2014 was 23.5%, down from 25.3% the
prior year period. This decrease was principally due to increased smartphone
revenues with lower profit margins resulting from the Company's higher revenue
sharing percentage with smartphone handset partners and content providers in
order to expand its smartphone user base as well as improve the content and
applications offered to smartphone users.

Operating Expenses

Total operating expenses, primarily consisting of employee salaries and
benefits, training expenses, traveling, entertainment and office related
expenses, decreased 40.7% in second quarter 2014 to RMB29.4 million (US$4.8
million) from RMB49.7 million in the prior year period, primarily due to the
decrease in headcount.

Total non-IFRS operating expenses were RMB26.7 million (US$4.4 million) in
second quarter 2014, a decrease of 37.2% from RMB42.6 million in the prior
year period.

                                   For the three months ended
                                   September 30,
                                   2012      2013     2013
In thousands                        (RMB)     (RMB)    (US$)
                                                    
Operating expenses:                                  
Research and development expenses   23,008    8,296    1,356
Sales and marketing expenses        8,342     7,118    1,163
General and administrative expenses 18,263    14,067   2,299
Other income and expense            43        (49)     (8)
Total operating expenses            49,656    29,432   4,810
                                                    
Non-IFRS operating expenses:                         
Research and development expenses   20,769    7,715    1,261
Sales and marketing expenses        7,518     6,912    1,129
General and administrative expenses 14,256    12,158   1,987
Other income and expense            43        (49)     (8)
Total non-IFRS operating expenses   42,586    26,736   4,369

Non-IFRS operating expenses are defined as operating expenses excluding
share-based compensation expenses.

The decrease in operating expenses was primarily due to reduced overall
headcount in connection with the Company's strategic reorganization, which
rebalanced headcount between the smartphone and feature phone businesses and
reduced resources in the feature phone business. The Company's employee
headcount decreased to 423 as of September 30, 2013 from 685 as of September
30, 2012 as described in the table below.

                                      As of        As of   As of
                                      September 30, June 30, September 30,
                                      2012          2013     2013
                                                           
Headcount                                                   
Operations                             122           77       79
Research and development               369           139      151
Sales and marketing                    96            100      119
General and administrative             98            79       74
                                                           
Total headcount                        685           395      423
                                                           
Average headcount for the three months 684           450      414

Net Profit/ Loss and Earnings/Loss Per Share

Net loss in second quarter 2014 decreased to RMB4.4 million (US$0.7 million),
from RMB11.7 million in the prior year period. This improvement in net loss
was attributable to the reduction in operating expenses as the Company
realigned away from the feature phone business towards the smartphone
business, which was partially offset by RMB 4.4 million (US$0.7 million)
income tax expenses resulting from the change of the holding entity of certain
equity investments for tax planning purposes and RMB1.5 million (US$0.3
million) impairment losses on investments in associates and available-for-sale
investments.

Non-IFRS net loss in second quarter 2014 decreased to RMB1.5 million (US$0.2
million), from RMB3.6 million in the prior year period.

Basic and diluted loss per common share in second quarter 2014 was RMB0.02
(US$0.00), which represents the equivalent of RMB0.13 (US$0.02) per ADS.

Non-IFRS basic and diluted loss per common share in second quarter 2014 was
RMB0.00 (US$0.00), which represents the equivalent of RMB0.03 (US$0.01) per
ADS.

The weighted average number of ADSs used to calculate basic and diluted
earnings per ADS for second quarter 2014 was 29,796,691.

Common Shares

Sky-mobi had 252.3 million common shares outstanding as of September 30, 2013,
or the equivalent of 31.5 million ADSs outstanding.

Other Operating Data

The following table sets forth total feature phone application store downloads
and smart phone application store downloads for the periods indicated:

                                          For the three months ended 
                                          September 30,              
In millions                              2012           2013        % change
                                                                   
Feature Phone Application Store                                     
User visits                                3,066.3        806.8       -73.7%
                                                                   
                                                                   
Single-user application and content                                 
downloads
Single-player games                        245.3          107.6       -56.1%
Other Single-user applications and content 411.9          136.1       -67.0%
titles
Total Single-user application and content  657.2          243.7       -62.9%
downloads
                                                                   
Multiplayer games downloads                41.0           17.8        -56.6%
                                                                   
                                                                   
Total feature phone application store      698.2          261.5       -62.5%
downloads
                                                                   
                                                                   
                                                                   
                                                                   
                                          For the three months ended 
                                          September 30,              
In millions                              2012           2013        
                                                                   
Smartphone Application Store                                        
User visits                                6.9            700.5       
                                                                   
Single-user application and content                                 
downloads
Single-player games                        2.7            37.1        
Other Single-user applications and content 7.5            89.8        
titles
Total Single-user application and content  10.2           126.9       
downloads
                                                                   
Multiplayer games downloads                0.0            1.6         
                                                                   
                                                                   
Total smartphone application store         10.2           128.5       
downloads

The following table sets forth the number of registered members, active
members and member log-ins for the Company's Maopao Community on feature
phones and smartphones as of the dates indicated:

                            As of September 30,
In millions                2012    2013    % change
                                          
Number of registered members 215.3   267.0   24.0%
                                          
                                          
                            For the three months ended
                            September 30,
In millions                2012    2013    % change
                                          
Maopao Community                           
Number of active members     15.0    5.1     -66.0%
Number of member log-ins     778.4   414.0   -46.8%

Business Outlook

For the fiscal third quarter 2014 ending December 31, 2013, Sky-mobi expects
total revenues to be in the range of RMB 90 million to RMB 100 million.

These are Sky-mobi's current projections, which are subject to change.

Conference Call and Webcast

Sky-mobi's management team will host a conference call today November 18, 2013
at 8:00 AM EST, (or 5:00 AM U.S. Pacific Standard Time and 9:00 PM,
Beijing/Hong Kong time)to discuss the Company's financial results.
Participants may access the call by dialing the following numbers:

United States:           +1-845-675-0438
International Toll Free: +1-855-500-8701
China Domestic:          400-1200654
Hong Kong:               +852-3051-2745
Conference ID:           #98789361

The replay will be accessible through November 26, 2013 by dialing the
following numbers:

United States Toll Free: +1- 855-452-5696
International:           +61-2-8199-0299
Conference ID:           #98789361

A live and archived webcast of the conference call will be available on the
Company's investor relations website at http://ir.sky-mobi.com

About Non-IFRS Financial Measures

To supplement its consolidated financial statements prepared in accordance
with International Financial Reporting Standards, or IFRS, Sky-mobi uses
several non-IFRS financial measures defined below.The Company believes
management and investors benefit from non-IFRS financial measures in assessing
the Company's performance and prospects. Specifically, the Company believes
that non-IFRS financial measures provide meaningful supplemental information
regarding its performance by excluding certain items that may not be
indicative of the Company's operating performance.

The presentation of this additional information is not meant to be considered
superior to, in isolation from or as a substitute for results prepared in
accordance with IFRS. A limitation of using non-IFRS cost of revenues, gross
profit, operating expenses, profit from operations, net profit and net profit
per share is that these non-IFRS measures exclude share-based compensation
expenses that have been and will continue to be for the foreseeable future a
significant recurring expense. Management provides specific information
regarding the IFRS amounts excluded from each non-IFRS measure. For more
information on these non-IFRS financial measures, please see the tables
containing reconciliations of non-IFRS financial measures to comparable IFRS
measures in this release.

Definitions of Non-IFRS Measures

Non-IFRS cost of revenues is defined as cost of revenues excluding share-based
compensation expenses.

Non-IFRS gross profit is defined as revenues less non-IFRS cost of revenues.

Non-IFRS operating expenses are defined as operating expenses excluding
share-based compensation expenses.

Non-IFRS profit (loss) from operations is defined as Non-IFRS gross profit
less non-IFRS operating expenses.

Non-IFRS net profit (loss) is defined as non-IFRS profit (loss) from
operations plus/minusother gains or losses, impairment loss on investments in
associates, impairment loss on available-for-sale investments and share of
results of associates, less income tax.

Non-IFRS basic and diluted earnings (losses) per common share/ADS are defined
as non-IFRS net profit (loss) attributable to owners of the Company divided by
weighted average outstanding shares/ADSs during the period.

Explanatory Notes

This announcement contains translations of certain Renminbi (RMB) amounts into
U.S. dollars (US$) at a specified rate solely for the convenience of the
reader. Unless otherwise noted, all translations from RMB to U.S. dollars are
made at a rate of RMB6.12 to US$1.00, the exchange rate at September 30, 2013
as set forth in the H.10 statistical release of the Federal Reserve Board.

When calculating the number of Maopao users, Sky-mobi counts an individual who
uses a particular handset with a particular SIM card to access Maopao as one
user. Therefore, an individual who accesses Maopao through one handset with
two SIM cards separately will be counted as two users, while an individual who
accesses Maopao through two handsets using the same SIM card will also be
counted as two users.

The number of downloads of application and content titles on Maopao refers to
the number of requests made by mobile users for downloading a particular
application or a content title, or for authorization to access to a specified
feature of a particular application or a content title from Maopao. A user may
make multiple download requests for an application depending on the complexity
of the application and whether interruptions occurred during the downloading
process.

The number of active members of the Maopao Community refers to the number of
registered members who logged on to the Maopao Community on feature phones or
smartphones at least twice during a month for the relevant quarter.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. In some cases, you can identify forward-looking statements by such terms
as "may," "will," ''believes,'' ''expects,'' ''anticipates,'' ''intends,''
''estimates,'' "plans," "continues" or other similar expressions,the negative
of these terms, or other comparable terminology. Such statements, including
statements relating to the Company's business outlook, are subject to risks
and uncertainties that could cause actual results to differ materially from
those projected. Potential risks and uncertainties include the effectiveness,
profitability, and marketability of the Company's solutions; the Company's
limited operating history; measures introduced by the PRC government and
mobile network operators aimed at mobile applications-related services;the
Company's revenue projections for future periods; the Company's ability to
maintain relationships with handset companies, content providers and payment
service providers; its dependence on mobile service providers and mobile
network operators for the collection of a substantial majority of its
revenues; billing and transmission failures, which are often beyond the
Company's control; its ability to compete effectively; its ability to capture
opportunities in the growing smart phone market; its ability to obtain and
maintain applicable permits and approvals; general economic and business
conditions; the volatility of the Company's operating results and financial
condition; the Company's ability to attract or retain qualified senior
management personnel and research and development staff; and other risks
described in the Company's filings with the Securities and Exchange
Commission, including its annual report on Form 20-F filed on June 28,
2013.These forward-looking statements are based on current expectations,
assumptions, estimates and projections about the Company and its industry. The
Company undertakes no obligation to update forward-looking statements to
reflect subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law.

About Sky-mobi Limited

Sky-mobi Limited operates the leading mobile application store in China in
terms of the user visits to the Company's Maopao application store. The
Company works with handset companies to pre-install its Maopao mobile
application store on handsets and with content providers to provide users with
applications and content titles. Users of its Maopao store can browse,
download, and enjoy a range of applications and content, such as single-player
games, mobile music, and books. The Company's Maopao store enables mobile
applications and content to be downloaded and run on various mobile handsets
with different hardware and operating system configurations. The Company also
operates a mobile social network community in China, the Maopao Community,
where it offers mobile social games, as well as applications and content with
social network functions to its registered members. The Company is based in
Hangzhou, the People's Republic of China. For more information, please visit:
www.sky-mobi.com.

^1Non-IFRS figures exclude share-based compensation expenses. Please see
"About Non-IFRS Financial Measures" in this release for more information.

^2American Depositary Shares ("ADSs") are traded on the NASDAQ Global Market,
each of which represents eight common shares of the Company.

^3ARPU represents average revenue per user.

                           FINANCIAL TABLES FOLLOW

                                                                             
Sky-mobi Limited
Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income (IFRS)
                                                                             
                         For the three months ended       For the six months ended
                         September 30,                    September 30,
                         2012        2013        2013     2012        2013        2013
In thousands              (RMB)       (RMB)       (US$)    (RMB)       (RMB)       (US$)
(Except for share and per                                                     
share data)
                                                                             
Revenues                  139,831     116,583     19,050   293,186     241,800     39,510
Cost of revenues          (105,451)   (89,417)    (14,611) (221,747)   (180,387)   (29,475)
Gross profit              34,380      27,166      4,439    71,439      61,413      10,035
                                                                             
Research and development  (23,008)    (8,296)     (1,356)  (43,083)    (20,084)    (3,282)
expenses
Sales and marketing       (8,342)     (7,118)     (1,163)  (17,272)    (17,882)    (2,922)
expenses
General and               (18,263)    (14,067)    (2,299)  (35,533)    (29,531)    (4,825)
administrative expenses
Other income and expense  (43)        49          8        17          10          2
Total operating expenses  (49,656)    (29,432)    (4,810)  (95,871)    (67,487)    (11,027)
                                                                             
Loss from operations      (15,276)    (2,266)     (371)    (24,432)    (6,074)     (992)
                                                                             
Other gains and losses    4,222       4,168       681      8,718       7,013       1,146
Impairment loss on        --        (727)       (119)    --        (727)       (119)
investments in associates
Impairment loss on
available-for-sale        --        (800)       (131)    --        (800)       (131)
investments
Share of results of       (498)       96          16       (779)       1,552       254
associates
Profit before tax         (11,552)    471         76       (16,493)    964         158
Income tax expenses       (108)       (4,919)     (804)    (275)       (5,743)     (938)
Loss for the period       (11,660)    (4,448)     (728)    (16,768)    (4,779)     (780)
                                                                             
Total comprehensive loss  (11,660)    (4,448)     (728)    (16,768)    (4,779)     (780)
for the period
                                                                             
Profit (loss)and total
comprehensive                                                                 
income(loss)attributable
to:
- Owners of the Company   (11,768)    (3,939)     (645)    (16,867)    (4,393)     (717)
- Non-controlling         108         (509)       (83)     99          (386)       (63)
interests
                         (11,660)    (4,448)     (728)    (16,768)    (4,779)     (780)
                                                                             
Losses per common share                                                       
Basic                     (0.04)      (0.02)      (0.00)   (0.06)      (0.02)      (0.00)
Diluted                   (0.04)      (0.02)      (0.00)   (0.06)      (0.02)      (0.00)
                                                                             
Weight average number of                                                      
ADS
Basic                     32,273,875  29,796,691          32,273,853  30,034,578  
Diluted                   32,273,875  29,796,691          32,273,853  30,034,578  
                                                                             
Weight average number of                                                      
shares
Basic                     258,191,000 238,373,525         258,190,821 240,276,625 
Diluted                   258,191,000 238,373,525         258,190,821 240,276,625 


Unaudited Reconciliations of non-IFRS financial measures
to comparable IFRS financial measures
                                            
            For the three months ended       For the six months ended
            September 30,                    September 30,
            2012        2013        2013     2012        2013        2013
In thousands (RMB)       (RMB)       (US$)    (RMB)       (RMB)       (US$)
(Except for
share and                                                        
per share
data)
                                                                
IFRS cost of (105,451)   (89,417)    (14,611) (221,747)   (180,387)   (29,475)
revenues
Less:
share-based  956         244         40       1,946       287         47
compensation
expenses
Non-IFRS
cost of      (104,495)   (89,173)    (14,571) (219,801)   (180,100)   (29,428)
revenues
                                                                
IFRS gross   34,380      27,166      4,439    71,439      61,413      10,035
profit
Add:
share-based  956         244         40       1,946       287         47
compensation
expenses
Non-IFRS     35,336      27,410      4,479    73,385      61,700      10,082
gross profit
                                                                
Total IFRS
operating    (49,656)    (29,432)    (4,810)  (95,871)    (67,487)    (11,027)
expenses
Less:
share-based  7,070       2,696       441      14,317      9,744       1,592
compensation
expenses
Total
non-IFRS     (42,586)    (26,736)    (4,369)  (81,554)    (57,743)    (9,435)
operating
expenses
                                                                
IFRS loss
from         (15,276)    (2,266)     (371)    (24,432)    (6,074)     (992)
operations
Add:
share-based  8,026       2,940       481      16,263      10,031      1,639
compensation
expenses
Non-IFRS
profit       (7,250)     674         110      (8,169)     3,957       647
(loss) from
operations
                                                                
IFRS net
loss for the (11,660)    (4,448)     (728)    (16,768)    (4,779)     (781)
period
Add:
share-based  8,026       2,940       481      16,263      10,031      1,639
compensation
expenses
Non-IFRS net
profit       (3,634)     (1,508)     (247)    (505)       5,252       858
(loss) for
the period
                                                                
Non-IFRS
earnings                                                         
(losses) per
common share
Basic        (0.01)      (0.00)      (0.00)   (0.00)      0.02        0.00
Diluted      (0.01)      (0.00)      (0.00)   (0.00)      0.02        0.00
                                                                
Weight
average                                                          
number of
shares
Basic        258,191,000 238,373,525         258,190,821 240,276,625 
Diluted      258,191,000 238,373,525         258,190,821 240,276,625 


Sky-mobi Limited
Unaudited Consolidated Statements of Financial Position (IFRS)
                                                              
                                        As of     As of
                                        June 30,  September 30, September 30,
                                        2013      2013          
In thousands                             (RMB)     (RMB)         (US$)
                                                              
ASSETS                                                         
Current assets                                                 
Cash and cash equivalents                107,368   125,215       20,460
Term deposits                            507,166   393,776       64,342
Investment in financial products         --        85,820        14,023
Trade and other receivables              81,678    67,260        10,989
Amounts due from related parties         131       2,219         363
Total current assets                     696,343   674,290       110,177
                                                              
Non-current assets                                             
Property and equipment                   12,040    9,401         1,536
Investments in associates                29,326    64,085        10,471
Available-for-sale investments           7,081     6,248         1,021
Prepayment for investment                250       1,450         237
Other non-current assets                 3,098     3,312         541
Deferred tax assets                      1,765     1,765         288
Total non-current assets                 53,560    86,261        14,094
                                                              
Total assets                             749,903   760,551       124,271
                                                              
EQUITY AND LIABILITIES                                         
Current liabilities                                            
Trade and other payables                 130,713   143,445       23,439
Income tax liabilities                   4,103     9,022         1,474
Amounts due to related parties           7,644     8,109         1,325
Deferred revenue                         8,436     7,860         1,284
Total current liabilities                150,896   168,436       27,522
                                                              
Total liabilities                        150,896   168,436       27,522
                                                              
Equity                                                         
Share capital                            90        90            15
Share premium                            628,126   624,385       102,024
Reserves                                 164,647   166,014       27,126
Treasury stock                           (4)       (5)           (1)
Deficit                                  (198,280) (202,288)     (33,054)
Equity attributable to owners of the     594,579   588,196       96,110
Company
Non-controlling interests                4,428     3,919         639
Total equity                             599,007   592,115       96,749
                                                              
Total equity and liabilities             749,903   760,551       124,271

CONTACT: Sky-mobi Limited
         Mr. John Bi, CFO
         Phone: + (86) 571-87770978 (China)
         Email: investor.relations@sky-mobi.com

         ICR Inc
         Jeremy Peruski, Senior Vice President
         Phone: + (1) (646) -915-1615 (US)
         Email: investor.relations@sky-mobi.com

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