SHENZHEN, China

,

Feb. 8, 2021

/PRNewswire/ — 500.com Limited (NYSE: WBAI) (“500.com,” “the Company,” “we,” “us,” “our company,” or “our”), an online sports lottery service provider in

China

, today reported its unaudited financial results for the fourth quarter and full year ended

December 31, 2020

.

Announcement of Private Placement, Appointment of New Officers and Exploration of Business Opportunities in the Blockchain and Cryptocurrency Industries

On

December 21, 2020

, the Company announced that it had entered into a definitive share subscription agreement (the “Agreement”) with Good Luck Information Technology Co., Limited (“Good Luck Information”), a company incorporated in

Hong Kong

, for the issuance and sale of newly issued Class A ordinary shares of the Company (“Class A Shares”).

Pursuant to the Agreement, Good Luck Information will purchase 85,572,963 newly issued Class A Shares for a total purchase price of approximately

US$23 million

, of which 50% of the subscription price, or approximately

US$11.5 million

, shall be settled by U.S. dollars, with the remaining 50% of the subscription price, or approximately

US$11.5 million

, being settled by Bitcoin.

Good Luck Information has agreed to subject all the shares it or its affiliate will acquire in the transaction to a contractual lock-up restriction for 180 days after the closing. The closing is expected to take place on or before

February 20, 2021

, upon satisfaction of customary closing conditions.

Good luck Information is controlled by Mr.

Man San Vincent Law

, a founder of the Company, who currently holds less than 5% of the Company’s outstanding share capital. Upon closing, Good Luck Information will hold 16.6% of the Company’s issued and outstanding ordinary shares.

The Company’s Board of Directors (the “Board”) has proposed that the Company explore business opportunities in the blockchain and cryptocurrency industries based on some success experience of its associate, Loto Interactive Limited. The Board appointed Mr.

Xianfeng Yang

as the Chief Executive Officer of the Company, and Mr.

Bo Yu

as the Chief Operating Officer of the Company, both effective

December 21, 2020

.

The Company has entered into a definitive purchase agreement with certain non-U.S. persons (the “Sellers”) pursuant to which the Company expects to issue approximately

US$14.4 million

worth of its Class A Shares as consideration to acquire bitcoin mining machines owned by the Sellers.

The Company has further entered into a definitive purchase agreement (the “Purchase Agreement”) for 5,900 bitcoin mining machines for a total consideration of approximately

RMB55.2 million

(approximately

US$8.5 million

). All of the bitcoin mining machines are expected to be delivered in the second quarter of 2021. Concurrently with the Purchase Agreement, the Company has entered into a framework agreement (the “Framework Agreement”), pursuant to which the Company has agreed in principle to purchase up to 10,000 bitcoin mining machines in 2021, subject to availability and certain other conditions. The Company is required to pay a performance bond of

RMB2,000

per machine for the first 5,000 machines, or

RMB10 million

(approximately

US$1.5 million

) in aggregate. Assuming full delivery of the 15,900 bitcoin mining machines, the Company’s total hash rate will be increased by approximately 1,000 petahashes per second (PH/S).

Subscribe for Shares of Loto Interactive Limited

The Company has entered into a share subscription agreement, pursuant to which it has conditionally agreed to subscribe for 169,354,839 shares of Loto Interactive Limited (HKEX: 08198) (“Loto Interactive”) at a price of

HK$0.62

per share for a total consideration of approximately

HK$105 million

(approximately

US$13.5 million

) in cash (the “Share Subscription”). The Company currently owns approximately 33.7% of the issued share capital of Loto Interactive. Upon completion of the Share Subscription, the Company expects to own approximately 54.2% of the issued share capital of Loto Interactive, and Loto Interactive is expected to become a subsidiary of the Company.

Annual Report on Form 20-F for the Fiscal Year ended

December 31, 2019

The Company filed a Current Report on Form 6-K, or the COVID-19 Relief 6-K, in compliance with and reliance upon the SEC’s Order under Section 36 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, granting Exemptions from Specified Provisions of the Exchange Act and certain Rules thereunder (Release No. 34-88318), dated

March 4, 2020

, or the Relief Order. The Company relied on the Relief Order to delay the filing of its Annual Report on Form 20-F for the fiscal year ended

December 31, 2019

, or the 2019 Annual Report, due to circumstances related to COVID-19. Absent the Relief Order, the 2019 Annual Report was due to be filed by

April 30, 2020

.

The Company was unable to file the 2019 Annual Report on a timely basis as a result of, among other things, travel restrictions, quarantines and staffing issues due to circumstances related to COVID-19. The Company’s headquarters and operations are located in

Shenzhen, China

. Following the outbreak of COVID-19, the PRC government introduced temporary travel restrictions and mandatory quarantines aimed at preventing the spread of COVID-19 within

China

. While some of these restrictions and quarantines were relaxed in certain areas, the Company took pro-active measures to help protect its employees by implementing self-quarantine measures of at least 14 days for employees that traveled from other regions within

China

before they were allowed to report to the Company’s offices. As of

April 29, 2020

, the date of the COVID-19 Relief 6-K, Friedman LLP, the Company’s former independent registered public accounting firm, had not completed its audit of the Company’s financial statements and audit of the Company’s internal control over financial reporting as of

December 31, 2019

, due to the impact of COVID-19, and the previously reported internal investigation being conducted by King & Wood Mallesons LLP was still in progress. As a result of the foregoing, the Company was unable to timely file its 2019 Annual Report by

April 30, 2020

. The Company supplemented its 2019 Annual Report with an additional risk factor relating to COVID-19. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—The ongoing COVID-19 pandemic could materially and adversely affect our business, results of operations and financial condition” in the 2019 Annual Report.

The Company filed a Form 12b-25 with the SEC on

June 15, 2020

for late filing of its 2019 Annual Report. Absent the Form 12b-25, the 2019 Annual Report was due to be filed by

June 15, 2020

, pursuant to the COVID-19 Relief 6-K dated

April 29, 2020

. As of

June 15, 2020

, the date of the Form 12b-25 filing, the internal investigation being conducted by King & Wood Mallesons LLP was still in progress. Accordingly, the Company was then unable to conclude what impact it may have on the Company’s financial statements and internal control over financial reporting. In addition, Friedman LLP, the Company’s former independent registered public accounting firm, had not completed its audit of the Company’s financial statements and audit of the Company’s internal control over financial reporting as of

December 31, 2019

, due to the impact of COVID-19 and because the abovementioned internal investigation was still in progress.

As of

July 1, 2020

, the Company was delinquent in filing its 2019 Annual Report with the SEC. Pursuant to the Form 12b-25 filing dated

June 15, 2020

, the 2019 Annual Report was due to be filed by

June 30, 2020

. On

July 1, 2020

, the Company received an expected notice from New York Stock Exchange (“NYSE”) Regulation stating that the Company is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria pursuant to Section 802.01E of the NYSE Listed Company Manual as a result of the Company’s failure to timely file the 2019 Annual Report with the SEC. As required by the notice, (a) a representative of the Company contacted the NYSE on

July 1, 2020

to discuss the status of the 2019 Annual Report, and (b) the Company issued a press release dated

July 7, 2020

, disclosing the status of the 2019 Annual Report, noting the delay and the reason for the delay, as mentioned above. The anticipated filing date of the 2019 Annual Report was not then known. NYSE Regulation notified the Company that the NYSE would closely monitor the status of the Company’s late filing and related public disclosures for up to a six-month period from the due date of the 2019 Annual Report, or

December 31, 2020

, and that the Company would need to timely file its 2019 Annual Report and any subsequent delayed filings by

December 31, 2020

.

On

September 23, 2020

, Friedman LLP resigned as the Company’s auditor. The Company appointed MaloneBailey, LLP on

September 27, 2020

to conduct an audit of the Company’s consolidated financial statements for the fiscal year ended

December 31, 2019

and effectiveness of its internal control as of

December 31, 2019

, and to re-audit the Company’s consolidated financial statements for each of the fiscal years ended

December 31, 2017

and 2018. The Company announced the resignation of Friedman LLP and the appointment of MaloneBailey, LLP in a press release dated

September 28, 2020

. See “Item 16F. Change in Registrant’s Certifying Accountant” in the 2019 Annual Report.

On

October 7, 2020

, the Company announced that the SIC of the Company’s Board completed its internal investigation. King & Wood Mallesons LLP presented its investigation review to SIC on

October 7, 2020

. Based on the findings and analyses in the review by King & Wood Mallesons LLP, the SIC concluded that it did not find a sufficient basis to establish a violation of the U.S. Foreign Corrupt Practices Act of 1977 in connection with the Company’s prior activities in

Japan

. The SIC also reviewed the Company’s compliance policies, procedures and internal controls in light of the suggestions from King & Wood Mallesons LLP. The Company updated such policies, procedures and internal controls based on recommendations from the SIC, and will continue to enhance its internal controls as appropriate.

Once the abovementioned internal investigation was completed, the Company’s financial statements for the fiscal year ended

December 31, 2019

were finalized, the re-audit of the Company’s consolidated financial statements for each of the fiscal years ended

December 31, 2017

and 2018 was completed, and both the Company and MaloneBailey, LLP completed their assessment of the Company’s internal control over financial reporting as of

December 31, 2019

, the Company successfully filed its 2019 Annual Report on

December 11, 2020

.

Fourth


Quarter


2020


Highlights

• Net revenues were
  
  RMB9.0 million
  
  (
  
  US$1.4 million
  
  ), compared with net revenues of
  
  RMB6.1 million
  
  for the third quarter of 2020, and net revenues of
  
  RMB8.6 million
  
  for the fourth quarter of 2019.
• Operating loss was
  
  RMB51.4 million
  
  (
  
  US$7.9 million
  
  ), compared with operating loss of
  
  RMB50.2 million
  
  for the third quarter of 2020, and operating loss of
  
  RMB307.1 million
  
  for the fourth quarter of 2019.
• Non-GAAP
  
  ^[1]
  
  operating loss was
  
  RMB32.4 million
  
  (
  
  US$5.0 million
  
  ), compared with non-GAAP operating loss of
  
  RMB37.6 million
  
  for the third quarter of 2020, and non-GAAP operating loss of
  
  RMB68.5 million
  
  for the fourth quarter of 2019.
• Net loss attributable to 500.com was
  
  RMB56.1 million
  
  (
  
  US$8.6 million
  
  ), compared with net loss attributable to 500.com of
  
  RMB44.0 million
  
  for the third quarter of 2020, and net loss attributable to 500.com of
  
  RMB322.7 million
  
  for the fourth quarter of 2019.
• Non-GAAP net loss attributable to 500.com was
  
  RMB37.5 million
  
  (
  
  US$5.7 million
  
  ), compared with non-GAAP net loss attributable to 500.com of
  
  RMB31.6 million
  
  for the third quarter of 2020, and non-GAAP net loss attributable to 500.com of
  
  RMB69.4 million
  
  for the fourth quarter of 2019.
• Basic and diluted losses per ADS were
  
  RMB1.30
  
  
  (US$0.20)
  
  .
• Non-GAAP basic and diluted losses per ADS were
  
  RMB0.87
  
  
  (US$0.13)
  
  .

Full Year 2020 Highlights

• Net revenues were
  
  RMB21.8 million
  
  (
  
  US$3.3 million
  
  ), compared with net revenues of
  
  RMB39.7 million
  
  for full year 2019.
• Operating loss was
  
  RMB190.8 million
  
  (
  
  US$29.2 million
  
  ), compared with operating loss of
  
  RMB642.8 million
  
  for full year 2019.
• Non-GAAP operating loss was
  
  RMB135.4 million
  
  (
  
  US$20.8 million
  
  ), compared with non-GAAP operating loss of
  
  RMB252.0 million
  
  for full year 2019.
• Net loss attributable to 500.com was
  
  RMB223.2 million
  
  (
  
  US$34.2 million
  
  ), compared with net loss attributable to 500.com of
  
  RMB651.3 million
  
  for full year 2019.
• Non-GAAP net loss attributable to 500.com was
  
  RMB138.5 million
  
  (
  
  US$21.2 million
  
  ), compared with non-GAAP net loss attributable to 500.com of
  
  RMB245.7 million
  
  for full year 2019.
• Basic and diluted losses per ADS were
  
  RMB5.19
  
  
  (US$0.80)
  
  .
• Non-GAAP basic and diluted losses per ADS were
  
  RMB3.22
  
  
  (US$0.49)
  

Fourth


Quarter


2020


Financial Results

Net Revenues

Net revenues were

RMB9.0 million

(

US$1.4 million

) for the fourth quarter of 2020, representing a slight increase of

RMB0.4 million

or 4.7% from

RMB8.6 million

for the fourth quarter of 2019 and an increase of

RMB2.9 million

or 47.5% from

RMB6.1 million

for the third quarter of 2020. Net revenues during the fourth quarter of 2020 primarily consisted of

RMB5.6 million

(

EUR0.7 million

) in revenue contribution from the Company’s online lottery betting and online casino in

Europe

through TMG, which accounted for 62.2% of total net revenues. The sequential increase was mainly attributable to an increase of

RMB2.3 million

in revenue contribution from TMG, and an increase of

RMB0.6 million

in sports information services in

China

that have been provided since early 2020.

Operating Expenses

Operating expenses were

RMB60.9 million

(

US$9.3 million

) for the fourth quarter of 2020, representing a decrease of

RMB31.6 million

or 34.2% from

RMB92.5 million

for the fourth quarter of 2019, and an increase of

RMB4.7 million

or 8.4% from

RMB56.2 million

for the third quarter of 2020. The year-over-year decrease was mainly due to a decrease of

RMB13.7 million

in bad debt provision of receivables, a decrease of

RMB11.0 million

mainly in depreciation associated with leasehold improvements for the partial termination of office lease in

Shenzhen

and amortization associated with full impairment of acquired intangible assets in 2019, a decrease of

RMB6.1 million

in rental expenses mainly resulting from the partial termination of office lease in

Shenzhen

and the termination of office leases in

Hong Kong

and

Japan

due to closure of subsidiaries’ local offices , a decrease of

RMB4.9 million

in expenses for employees as a result of decrease in headcount, a decrease of

RMB1.2 million

in travelling expenses, and a decrease of

RMB1.1 million

in marketing and promotional expenses relating to a change in TMG’s marketing strategy, which were partially offset by an increase of

RMB3.9 million

in share-based compensation expenses associated with share options granted to the Company’s employees and an increase of

RMB3.6 million

in consulting expenses. The sequential increase was mainly due to an increase of

RMB11.7 million

in rental expenses mainly resulting from the partial termination of office lease in

Shenzhen

in

August 2020

, which led to a reversal of accrued rental expenses in prior years during the third quarter of 2020, an increase of

RMB10.1 million

in expenses for employees, an increase of

RMB6.4 million

in share-based compensation expenses associated with share options granted to the Company’s employees, and an increase of RMB1.0 million in lottery insurance costs for TMG, which were partially offset by a decrease of

RMB23.2 million

mainly in depreciation associated with leasehold improvements for the partial termination of office lease in

Shenzhen

and a decrease of

RMB1.2 million

for bad debt provision of receivables.

Cost of services was

RMB4

.4 million (

US$0

.7 million) for the fourth quarter of 2020, representing a decrease of

RMB7.8 million

or 63.9% from

RMB12

.2 million for the fourth quarter of 2019, and a slight increase of

RMB0.6 million

or 15.8% from

RMB3

.8 million for the third quarter of 2020. The year-over-year decrease was mainly attributable to a decrease of

RMB6.9 million

in amortization mainly associated with full impairment of acquired intangible assets in 2019. The sequential increase was mainly attributable to an increase of RMB1.0 million in lottery insurance costs for TMG.

Sales and marketing expenses were

RMB4

.6 million (

US$0

.7 million) for the fourth quarter of 2020, representing a decrease of

RMB4.5 million

or 49.5% from

RMB9

.1 million for the fourth quarter of 2019, and a slight increase of

RMB0.4 million

or 9.5% from

RMB4.2 million

for the third quarter of 2020. The year-over-year decrease was mainly attributable to a decrease of

RMB2.1 million

in expenses for employees, a decrease of

RMB1.1 million

in marketing and promotional expenses relating to a change in TMG’s marketing strategy, and a decrease of

RMB0.7 million

in share-based compensation expenses associated with share options granted to the Company’s employees. The sequential increase was mainly due to an increase of

RMB1.3 million

in expenses for employees, which was partially offset by a decrease of

RMB1.1 million

in share-based compensation expenses associated with share options granted to the Company’s employees.

General and administrative expenses were

RMB40.9 million

(

US$6.3 million

) for the fourth quarter of 2020, representing a decrease of

RMB18.4 million

or 31.0% from

RMB59.3 million

for the fourth quarter of 2019, and a decrease of

RMB5

.5 million or 11.9% from

RMB46

.4 million for the third quarter of 2020. The year-over-year decrease was mainly due to a decrease of

RMB13.7 million

in bad debt provision of receivables, a decrease of

RMB4.6 million

in expenses for employees as a result of decrease in headcount, a decrease of

RMB4.2 million

mainly in depreciation associated with leasehold improvements for the partial termination of office lease in

Shenzhen

, a decrease of

RMB4.0 million

in rental expenses mainly resulting from the partial termination of office lease in

Shenzhen

and the termination of office leases in

Hong Kong

and

Japan

due to closure of subsidiaries’ local offices, and a decrease of

RMB0.9 million

in travelling expenses, which were partially offset by an increase of

RMB5.4 million

in share-based compensation expenses associated with share options granted to the Company’s employees and an increase of

RMB3.7 million

in consulting expenses. The sequential decrease was mainly due to a decrease of

RMB23.3 million

mainly in depreciation associated with leasehold improvements for the partial termination of office lease in

Shenzhen

and a decrease of

RMB1.2 million

for bad debt provision of receivables, which were partially offset by an increase of

RMB8.9 million

in share-based compensation expenses associated with share options granted to the Company’s employees, an increase of

RMB5.8 million

in rental expenses mainly resulting from the partial termination of office lease in

Shenzhen

in

August 2020

, which led to a reversal of accrued rental expenses in prior years during the third quarter of 2020, and an increase of

RMB4.1 million

in expenses for employees.

Service development expenses were

RMB11

.1 million (

US$1.7 million

) for the fourth quarter of 2020, representing a decrease of

RMB0.8 million

or 6.7% from

RMB11

.9 million for the fourth quarter of 2019, and an increase of

RMB9.3 million

or 516.7% from

RMB1

.8 million for the third quarter of 2020. The year-over-year decrease was mainly due to a decrease of

RMB1.9 million

in rental expenses mainly resulting from the partial termination of office lease in Shenzhen and a decrease of

RMB0.8 million

in share-based compensation expenses associated with share options granted to the Company’s employees, which were partially offset by an increase of

RMB1.8 million

in expenses for employees. The sequential increase was mainly due to an increase of

RMB6.0 million

in rental expenses mainly resulting from the partial termination of office lease in

Shenzhen

in

August 2020

, which led to a reversal of accrued expenses in prior years during the third quarter of 2020 and an increase of

RMB4.7 million

in expenses for employees, which were partially offset by a decrease of

RMB1.4 million

in share-based compensation expenses associated with share options granted to the Company’s employees.

Impairment




s




of Goodwill and Acquired Intangible assets

The impairments of goodwill and acquired intangible assets were related to the Company’s acquisition of TMG, which were triggered by TMG’s temporary suspension of its operations in

Sweden

between

January 2020

and

September 2020

.

Impairment of goodwill and acquired intangible assets were

RMB41.6 million

and

RMB181.8 million

, respectively, for the fourth quarter of 2019. There was no additional impairment of goodwill and acquired intangible assets for the third and fourth quarters of 2020 as the related goodwill and intangible assets were fully impaired as of

December 31, 2019

.

Operating Loss

Operating loss was

RMB51

.4 million (

US$7.9 million

) for the fourth quarter of 2020, compared with operating loss of

RMB307

.1 million for the fourth quarter of 2019, and operating loss of

RMB50

.2 million for the third quarter of 2020. The year-over-year decrease was mainly due to (i) an impairment provision of

RMB41.6 million

provided for goodwill, and an impairment provision of

RMB181.8 million

provided for acquired intangible assets, during the fourth quarter of 2019, while there was no such impairment during the fourth quarter of 2020, and (ii) a decrease of

RMB31.6 million

in operating expenses due to cost reduction measures implemented by management. The sequential increase was not material.

Non-GAAP operating loss was

RMB32.4 million

(

US$5.0 million

) for the fourth quarter of 2020, compared with non-GAAP operating loss of

RMB68

.5 million for the fourth quarter of 2019, and non-GAAP operating loss of

RMB37

.6 million for the third quarter of 2020. The year-over-year decrease was mainly due to a decrease of

RMB35.5 million

in Non-GAAP operating expenses due to cost reduction measures implemented by management. The sequential decrease was mainly attributable to an increase of

RMB2.9 million

in revenue and a decrease of

RMB1.7 million

in Non-GAAP operating expenses.

Net Loss




Attributable to 500.com

Net loss attributable to 500.com was

RMB56

.1 million (

US$8.6 million

) for the fourth quarter of 2020, compared with net loss attributable to 500.com of

RMB322

.7 million for the fourth quarter of 2019, and net loss attributable to 500.com of

RMB44.0

million for the third quarter of 2020. The year-over-year decrease was mainly due to (i) an impairment provision of

RMB41.6 million

provided for goodwill, and an impairment provision of

RMB181.8 million

provided for acquired intangible assets, during the fourth quarter of 2019, while there was no such impairment during the fourth quarter of 2020, (ii) a decrease of

RMB31.6 million

in operating expenses due to cost reduction measures implemented by management, (iii) a decrease of

RMB22.4 million

in impairment of equity investments, and (iv) a decrease of

RMB7.0 million

in deferred tax benefit relating to valuation allowance. The sequential increase was mainly due to an increase of

RMB4.7 million

in operating expenses, and (ii) an increase of

RMB11.5 million

in losses from equity method investments, which were partially offset by an increase of

RMB2.9 million

in revenue.

Non-GAAP net loss attributable to 500.com was

RMB37.5 million

(

US$5.7 million

) for the fourth quarter of 2020, compared with non-GAAP net loss attributable to 500.com of

RMB69

.4 million for the fourth quarter of 2019, and non-GAAP net loss attributable to 500.com of

RMB31.6 million

for the third quarter of 2020. The year-over-year decrease was mainly due to a decrease of

RMB35.5 million

in Non-GAAP operating expenses due to cost reduction measures implemented by management. The sequential increase was mainly attributable to an increase of

RMB11.5 million

in losses from equity method investments, which were partially offset by an increase of

RMB2.9 million

in revenue and a decrease of

RMB1.7 million

in Non-GAAP operating expenses.

Cash and Cash Equivalents, Restricted Cash, Time Deposits and Short-term Investments

As of

December 31, 2020

, the Company had cash and cash equivalents of

RMB308

.7 million (

US$47

.3 million) and restricted cash

^[2]

of

RMB3

.8 million (

US$0.6 million

), compared with cash and cash equivalents of

RMB278

.4 million, restricted cash of

RMB2.4 million

, time deposits

^[3]

of

RMB0.2 million

and short-term investments

^[4]

of

RMB50

.0 million as of

September 30, 2020

.

Prepayments and Other Current Assets

As of December 31, 2020, the balance of prepayment and other current assets was

RMB23

.0 million (

US$3

.5 million), compared with

RMB23.5 million

as of

September 30, 2020

. The balance as of

December 31, 2020

mainly included: (i) the current portion of deferred expenses of

RMB2

.9 million (

US$0

.4 million); (ii) receivables from third party payment providers of

RMB2.3 million

(

US$0.4 million

); (iii) deposit receivables of

RMB0.6 million

(

US$0

.1 million); (iv) deductible value added input tax of

RMB11.6

million (

US$1

.8 million); and (v) other receivables of

RMB5

.6 million (

US$0

.8 million).

Business Outlook

The Company does not expect to issue any earnings forecast at present.

Currency Convenience Translation

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of

RMB6

.5250 to

US$1.00

, as set forth in the H.10 statistical release of the Federal Reserve Board on

December 31, 2020

, and all translations from Renminbi to Euros were made at the exchange rate of

RMB7

.9065 to

EUR1.00

, which was the average of the month-end exchange rates as set forth in the statistical release of State Administration of Foreign Exchange at the end of each month in 2020.

About 500.com Limited

500.com Limited (NYSE: WBAI) is an online sports lottery service provider in

China

. The Company offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users. Most recently, 500.com is actively developing its block-chain related business.

Safe Harbor Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “going forward,” “outlook” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

About Non-GAAP Financial Measures

To supplement the Company’s financial results presented in accordance with U.S. GAAP, the Company uses non-GAAP financial measures, which are adjusted from results based on U.S. GAAP to exclude share-based compensation expenses in the Company’s consolidated affiliated entities. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in table at the end of this release, which provide more details on the non-GAAP financial measures.

Non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of the Company’s continuing operations and prospects for the future. Non-GAAP financial information should not be considered a substitute for or superior to U.S. GAAP results. In addition, calculations of this non-GAAP financial information may be different from calculations used by other companies, and therefore comparability may be limited.

View original content:

http://www.prnewswire.com/news-releases/500com-limited-announces-unaudited-financial-results-for-the-fourth-quarter-and-full-year-ended-december-31-2020-301223828.html

SOURCE 500.com Limited