FAQ

Where are ChangYou's ADSs traded?

ChangYou's ADSs are traded on NASDAQ Global Select Market under the symbol "CYOU". Each ADS represents two Class A ordinary shares, par value US$0.01 per share, of ChangYou.

ChangYou's ADRs are also quoted on the Singapore Exchange GlobalQuote Board and are traded under the trading code "K3JD". The ADRs quoted on the Singapore Exchange are fully fungible with ChangYou's US-listed ADRs. Investors who are interested in learning more about the trading the Company's ADRs on the Singapore Exchange, can refer to the following website published by the Singapore Exchange for more information: http://www.sgx.com/wps/portal/marketplace/mp-en/products/securities_products/adr

What does "ChangYou" mean?

"ChangYou" can mean a number of things in Chinese, but for the Company it means "good gaming."

What does ChangYou do?

ChangYou is a leading online game developer and operator in China. Through a combination of in-house development and selective licensing, ChangYou operates several massively multiplayer online games, or MMOs, including the award-winning, inhouse-developed game, Tian Long Ba Bu, one of the most popular massively multi-player online (“MMO”) games in China, and DDTank, one of the top-ranking Web-based games in China. Changyou also owns and operates the 17173.com Website, a leading game information portal in China. . The Company provides game development, game operation, marketing and customer service supports to the games it operates.

Does ChangYou pay a cash dividend?

ChangYou currently intends to retain all available funds and any future earnings for use in the operation and expansion of its business, and does not anticipate paying any cash dividends on its ordinary shares, or indirectly on its ADSs, for the foreseeable future.

Future cash dividends, if any, will be declared at the discretion of ChangYou's board of directors and will depend upon ChangYou's future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors as the Company's board of directors may deem relevant.

Holders of ADSs will be entitled to receive dividends, subject to the terms of the deposit agreement, to the same extent as the holders of the Company's ordinary shares, less the fees and expenses payable under the deposit agreement. Any cash dividends will be paid by the depositary to holders of ADSs in U.S. dollars, subject to the terms of the deposit agreement. Other distributions, if any, will be paid by the depositary to holders of ADSs in any manner that the depositary deems equitable and practicable.

How do I contact ChangYou's Depositary?

The depositary for the Company's American Depositary Shares, or ADSs, is the Bank of New York Mellon. The depositary's corporate trust office at which ChangYou's ADSs are administered is located at 101 Barclay Street, New York, New York 10286.

Who is ChangYou's independent accountant?

PricewaterhouseCoopers Zhong Tian CPAs Limited Company

Why does ChangYou disclose non-GAAP measures in its quarterly earnings releases?

To supplement the unaudited consolidated financial information prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"”), Changyou's management uses non-GAAP measures of gross profit, operating profit, net income, net income attributable to Changyou.com Limited and diluted net income attributable to Changyou.com Limited per ADS, which are adjusted from results based on GAAP to exclude the compensation cost of share-based awards granted, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
Changyou's management believes that excluding share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions from its non-GAAP financial measures is useful for itself and investors. Further, the amount of share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions cannot be anticipated by management, and these expenses are not built into the Company’s annual budgets and quarterly forecasts, which generally will be the basis for information Changyou provides to analysts and investors as guidance for future operating performance. As share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions does not involve subsequent cash outflow, Changyou does not factor this in when evaluating and approving expenditures or when determining the allocation of its resources to its business operations. As a result, in general, the monthly financial results for internal reporting and any performance measure for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions.