The increase in operating expenses was primarily due to the compensation payments related to the Company's organization restructuring, as well as the Company's increased spending on research and development for the Android platform/Android products.
|As of December 31, 2011||As of September 30, 2012||As of December 31, 2012|
|Research and development||355||369||248|
|Sales and marketing||119||96||85|
|General and administrative||87||98||91|
The Company's employee headcount decreased 27.9% to 521 as of December 31, 2012 from 723 as of December 31, 2011. The decrease in headcount mainly resulted from the Company's organization restructuring, which rebalanced headcount between our smart phone and feature phone businesses and reduced resources in the feature phone sector due to the shrinking feature phone market.
Net profit and EPS
Net profit in third quarter 2013 was RMB3.8 million (US$0.6 million), down 39.8% compared to third quarter 2012.Non-IFRS net profit in third quarter 2013 was RMB8.3 million (US$1.3 million), down 55.9% from RMB18.9 million in third quarter 2012. Basic and diluted EPS in third quarter 2013 were RMB0.01 (US$0.00), which represents the equivalent of RMB0.11 (US$0.02) per ADS.