Cost of Revenues and Gross Profit

Total cost of revenues for third quarter 2013 decreased 15.8% to RMB96.4 million (US$15.5 million) compared to RMB114.5 million in third quarter 2012.

Total non-IFRS cost of revenues for third quarter 2013 decreased 15.5% to RMB96.1 million (US$15.4 million) compared to RMB113.7 million in third quarter 2012.
    For the three months ended December 31,
  2011 2012 2012
In thousands (RMB) (RMB) (US$)
   
Cost of revenues:      
  Costs associated with payments to industry participants  104,408  85,408 13,709
Direct costs  10,140  11,007 1,767
Total cost of revenues:  114,548  96,415  15,476
Gross Margin 31.5% 34.4%  
   
Non-IFRS cost of revenues:      
Costs associated with payments to industry participants  104,408  85,408 13,709
Direct costs  9,313  10,692 1,716
Total non-IFRS cost of revenues:  113,721  96,100  15,425
       
Non-IFRS Gross Margin 32.0% 34.6%  

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 revenue, which the Company believes more accurately reflects the Company's operating performance than IFRS cost of revenues.

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