Basic and Diluted Earnings per ADSBoth basic and diluted earnings per ADS were RMB-2.71 (US$-0.43) during the fourth quarter of 2012, compared with RMB5.01 in the fourth quarter of 2011 and RMB0.04 in the third quarter of 2012. Basic and diluted earnings per ADS excluding (1) share-based compensation (2) goodwill and intangible assets impairment loss (non-GAAP) were RMB-0.48 (US$-0.08), RMB0.25 and RMB5.01, respectively, during the fourth quarter of 2012, third quarter of 2012 and fourth quarter of 2011. Cash and Cash Equivalents As of December 31, 2012, the Company had cash and cash equivalents of RMB128.7 million (US$20.7 million) and short-term investments were RMB 45.0 million (US$7.2 million). Operating cash flow for the fourth quarter of 2012 was a net inflow of RMB25.6 million (US$4.1 million). Full Year 2012 Results Revenues Total revenues in 2012 were RMB187.6 million (US$30.1 million), representing a decrease of 23.0% from RMB243.5 million in 2011. The decrease was due mainly to a result of the Company's decision to direct significant resources towards developing in a new generation of Android and iOS-based social games. In addition, the handset design business had a decline in the first three quarters in 2012 although there was a strong sequential quarterly growth in revenue in the fourth quarter due to the Company's progress toward transitioning away from feature phone design towards smartphone handset design. Cost of Revenues Cost of revenue was RMB91.7 million (US$14.7 million), compared with RMB108.3 million in 2011, representing a decrease of 15.3%. The decrease was due largely to a decrease in the amount paid to agents who pre-install the Company's feature phone games and a decline in distribution costs for smartphone games. Operating Income (Loss) Operating loss was RMB52.4 million (US$8.4 million), compared with operating income of RMB86.8 million in 2011, representing a decrease of 160.4%.