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Giant Interactive Group Management Discusses Q3 2011 Results - Earnings Call Transcript

Before we continue, I would like to remind you that statements on this call that are not strictly historically in nature constitute 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 terminologies such as will, expects, anticipates, future, intend, plans, beliefs, estimates and other statements, and include among others, statements regarding our ‘s expectation of sequential top line growth in the fourth quarter of 2011 future prospects of the company and the Chinese online game industry, future financial position of the company, the ability for the company’s new web game projects to diversify its user base. The investment strategy of the company and the timetable of – for engineering testing, close beta testing, open beta testing, introduction and commercial launch of the various (inaudible) game pipeline.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of Giant to be materially different from historical results or from any results expressed or implied by such forward-looking statements.

These factors include, but are not limited to, the deterioration in the performance of the ZT Online 1 Series, failure of ZT Online 2 to grow as expected, unexpected delays in developing expansion packs or in the timetable for testing, introduction and launching of games, the company’s dependence on the ZT Online 1 Series games, which currently account for the majority of the company’s historical net revenues.

The company’s limited operating history and unproven long-term potential of its online game business model. The uncertainties with respect to the PRC legal and regulatory environments and the volatility of the markets in which the company operates. Competition from other online game companies, and the additional risks discussed in filings with the Securities and Exchange Commission, including our annual report on Form 20-F filed on June 17, 2011.

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