Edgar Filing: Giant Interactive Group Inc.

FORM 6-K

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of May 2008

Commission File Number: 001-33759

GIANT INTERACTIVE GROUP INC.

2/F No. 29 Building, 396 Guilin Road

Shanghai 200233

People’s Republic of China

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- N/A

Giant Interactive Group Inc.

Form 6-K

TABLE OF CONTENTS


		Page
Signature		3

Exhibit 99.1 — May 2008 Non-deal Roadshow Presentation		4

Exhibit 99.2 — May 2008 Non-deal Roadshow Factsheet		35

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Giant Interactive Group Inc.

By:		/s/ Eric He
Name:		Eric He
Title:		Chief Financial Officer

Date: May 20, 2008

GIANT

Roadshow, May 2008

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Safe Harbor Statement

This presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Giant Interactive Group Inc. (“Giant” or the “Company”) in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Specifically, this presentation does not constitute a “prospectus” within the meaning of the U.S. Securities Act of 1933, as amended. The Company has filed a registration statement (including a prospectus) with the United States Securities and Exchange Commission for the securities to be offered in the United States. Any public offering of the securities to be made in the United States will be made solely by means of the prospectus in the registration statement. Any decision to purchase securities in the proposed offering should be made solely on the basis of the information contained in the statutory prospectus in due course in relation to the proposed offering.

This presentation has been prepared by the Company solely for use at the roadshow presentation held in connection with the proposed offering. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.

The slides used in this presentation are strictly confidential. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided. Participants agree further not to photograph, copy or otherwise reproduce these materials in any form or pass on these materials to any other person for any purpose, during the presentation or while in the conference room. Participants must return this presentation and all other materials provided in connection herewith to the Company at the completion of the presentation.

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Table of Contents

Company Overview

Myths of the Online Game Industry & of Giant Interactive Market Opportunity Product & Operational Highlights Financial Highlights Growth Strategy & Execution

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Company Overview

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Giant: NYSE Listed

NYSE IPO: November 1, 2007

Ticker: GA

US$3.9B Market Cap: May 15, 2008 Outstanding Shares: Approximately 240M

About Giant:

Headquarters: Shanghai, China Over 4,000 Employees: including 3,000+ liaison personnel

Investor Information: www.ga-me.com

GA LISTED NYSE

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A Leading Developer and Operator of Online Games in China

China’s Leading Online Game Developer and Operator

• Flagship game ZT Online voted 2006’s Most Popular Online Game in China1

• ZT Online achieved over 2.1 million Peak Concurrent Users (PCU) in second quarter 2008

• Giant Online achieved over 237,000 PCU during its open beta launch on March 28, 2008 and over 344,000 PCU in May 2008

“Free-to-Play” Model Creates Large and Sticky In-Game Community

• Multiple monetization opportunities

• Potentially enhanced ARPU

• Extended game lifecycle

“Gamer First” Ideology Results in Compelling and Fun Gameplay

• Comprehensive “Encyclopedia” game features enhance user experiences for all types of gamers

• State of the art server technology maximizes in-game interactivity

• “Online Game 2.0” – Continuous game design & enhancements evolving from gamers’ feedback

One of the Fastest Growing and the Most Profitable Online Game Companies in China

• Revenue growth of over 270% for FY 2007

• Net margin of over 70% for Q1 2008

1 Source: IDC

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Experienced Management Team

Key Senior Management Team

Mr. Yuzhu Shi • Renowned entrepreneur

Founder, Chairman and • Extensive IT and consumer product experience Certain core members

CEO working together for

15 years

Ms. Wei Liu • 15 years of general management experience Director, President • Extensive experience in sales and marketing

Mr. Lu Zhang • 23 years of software industry and consumer Proven track record in

Director, COO product experience executing innovative business strategies

Mr. Eric He • 24 years of financial, accounting and investment CFO experience

Elite and passionate

Mr. Shiliang Song • 7 years of software industry experience game development CTO talent

Mr. Hui Yuan • 13 years of software industry experience

Vice President of R&D

Intimate knowledge of the Chinese

Mr. Yonghua Lu • 14 years of sales and marketing experience consumer market

Vice President of Sales & Marketing

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Myths of the Online

Game Industry & of Giant Interactive

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Dispelling 3 Common Myths

1 The success of an online game is purely hit or miss

Product diversification lowers risk

Focused strategy raises risk

3D graphics are vital for success

2D games cannot compete in China

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Myth 1:

Game Success is Hit or Miss by Nature

Traditional Movie & Console Giant’s “Online Game 2.0” Game Development Model Development Model

Hit or Miss Reduces Risk

CONTINUED GAME ENHANCEMENTS

Process PLAYER FEEDBACK

GAME GAME RELEASE RELEASE

Development TARGETED

MARKETING MARKETING

BLITZ FOCUSED

R&D

HEAVY R&D

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Case Study:

ZT Online’s Continuous Development and Success

PCU of ZT Online 01/08 Exp pack

2,500,000 Neighboring Friends 2.1 Million PCU

01/07 07/07

2,000,000 11/06 Exp pack Exp pack 1.5 Million

07/06 Exp pack Shi Wai Tao Zhong Zhi PCU Exp pack Kua Fu Yuan Yuan Cheng Cheng 1,500,000 Feng Yu Tong Zheng Zhou

1 Million PCU

1,000,000 680K PCU

Open beta hits 500,000 200K PCU

Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08

Constant Enhancements

Xmas promo Decorate New map & Cookie Virtual IPO Virtual red Car quests Balance Balance Country Free credits if Break Introduce Chat Game & Monster your lottery for monsters stock, envelopes Archer & Medic vs gamers’ refer level “salary functions cards storm house open beta with 2x tradable for for Team PK Wizard role country friends to join limit system” available anniversary Exp Dragon in-game Chinese Tournament roles revenge paid to in-game Auto- Mazes Bicycle boat races items New Year battles Adds Exp players Collect all Flower Optimize Heal Raise with race Decrease points for perfect Carriages 800x600 when power rewards with Exp time Team vs Free weapons Naval Weak country green resolution critical for rewards needed team points and Exp points Battles Reincarnation countries battles Reincarnation outfits for horses for salary given to inactive 5X can team Security break max New magic Custom accounts Raise Virtual Mining Less up New & anti- level limit boss defense Auto Exp equipment max Holy fireworks tasks materials against map virus has service PK Tournament level equipment for balance to make strong to Increase diamond Chinese 1st PK Chinese non- weapons when you Horse to 170 ones invade skill level rewards New Year Tournament Unleash New Year payers log off carriage race lion dance Spirit

05/08 04/08 03/08 02/08 01/08 12/07 11/07 10/07 09/07 08/07 07/07 06/07 05/07 04/07 03/07 02/07 01/07 12/06 11/06 10/06 09/06 08/06 07/06 06/06 05/06 04/06 03/06

02/06

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Myth 2:

Focused Strategy Raises Risk

In 2007, over 350 online games were released in China1.

ZT Online 2,100 Fantasy Westward Journey 2,080 World of Warcraft 1,000 Popkart 800 Audition 780 AskTao 700 Bomb and Bubble 700 QQ Fantasy 680 Legend of Mir II 670

0 500 1,000 1,500 2,000 2,500

PCU achieved to date2

In thousands

Most fail. So the larger the in-game community, the more likely an online game will succeed.

1 Source: IDC & GBC, 2007 2 Source: Company research

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Myth 3:

2D Games Cannot Compete in China

Top 9 Online Games in China 2D/2.5D Games Have Larger Market Share Based on PCU

2D/2.5D ZT Online 2,100

Games 2,080

Fantasy Westward Journey

World of Warcraft 1,000 Popkart 800

66.1%

Audition 780 AskTao 700

33.9%

Bomb and Bubble 700 QQ Fantasy 680

Games Legend of Mir II 670

0 500 1,000 1,500 2,000 2,500

1H 2007 PCU Achieved to Date

In thousands

2D Games 3D Games

Source: iResearch Source: Company research

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Market Opportunity

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Accelerating Growth in China’s Market

Robust Growth of China’s Rapid Growth of Online Game Players with Online Game Market Increasing Paying Player Penetration

(RMB¥ in millions)(In millions)

Online Game Players

6 %

AGR: 1

– 12 C 85 2007 76

% 57 . 9 48

9 40

:1 26,230

C AG

2 23,610

–

0 7 20,950

2 0 2007 2008E 2009E 2010E 2011E 2012E

18,130 Source: IDC, 2008

Total Addressable Market 2007 – 12

14,580

CAGR: 17.6%

10,570 Paying Player Penetration

59.6% 58.4% 57.3% 56.7% 56.1% 55.7%

2007 2008E 2009E 2010E 2011E 2012E 2007 2008E 2009E 2010E 2011E 2012E

Source: IDC, 2008 Source: IDC, 2008

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Well Positioned to Capitalize on Market Opportunities

MMO Games Have Dominant Market Share Locally-Developed Games Prevail

Casual Licensed Online Overseas Games Games 24.0% 34.9% MMO Locally

Games Developed 76.0% Games 65.1%

Source: IDC, 2008, based on 2007 revenues Source: IDC, 2008, based on 2007 revenues

2D/2.5D Games Have Larger Market Share Larger Dominance of Free-to-Play Games

68% 71% 75%

2D/2.5D 78% 81% 84%

Games 3D Games 66.1% 33.9%

32% 29%

25% 22% 19%

16%

2007 2008E 2009E 2010E 2011E 2012E

Subscription-Based Free-to-Play

Source: iResearch, based on 1H 2007 MMORPG revenues in China Source: IDC, 2008, based on 2007 revenues

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Product & Operational Highlights

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Current Game: ZT Online

•Commercial service began January 2006

•Free of charge to play

•Revenues derived from in-game purchases of virtual items and services

•Voted 2006’s Most Popular Online Game in China in its first year of operation1 •Achieved PCU of over 2.1 million in April 2008

•Five expansion packs since commercial launch

•Players remain engaged by continually updated content

•Proprietary technology allows over 40,000 gamers to play together in a single shard

1 Source: IDC

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Newest Game: Giant Online

•Open beta launch in March 2008

•Free of charge to play

•Revenues derived from in-game purchases of virtual items and services

•Achieved PCU of over 237,000 during its open beta launch in March 2008 •Achieved PCU of over 344,000 in May 2008

•Modern military theme MMORPG blended with hundreds of casual game elements •14 innovative roles and hundreds of modern weapons

•Proprietary technology allows 1 million gamers to play together in a single shard

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Focused Game Pipeline

ZT Online

Neighboring Friends Giant Online Empire of Sports King of Kings III

(Expansion Pack)

• Further enhanced • Free-to-play 2.5D • 3D multi-sports • Free-to-play 3D interactivity based on MMORPG with modern- MMORPG with football, MMORPG with medieval physical locations of era military theme basketball, tennis, magical theme players skiing, track & field

• 14 innovative roles, • Second sequel in the

• Encourage players to coupled with hundreds • Compete with other King of Kings series, form local bonds, and of casual game players in tournaments, first MMORPG face foreign friends or elements play together as a developed in Greater foes together team, or start a club China

• Advanced server

• Social networking technology intended to • Developed by Infront • Developed by Lager features with new in- enable 1 million Sports & Media and F4 Network in Taiwan game virtual products concurrent players in a and services single shard

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Key Operating Metrics

Active Paying Accounts (APA) Average Concurrent Users (ACU)

1,405 1,447 1,400 1,318

1,248 600 546

Thousands 515 512 1,200 481 986 Thousands 500 450 1,000 400 800 in 300

Accounts 600

200 400 Users in

200 100

0 0

1Q07 2Q07 3Q07 4Q07 1Q08 1Q07 2Q07 3Q07 4Q07 1Q08

Average Revenue per User (ARPU) Peak Concurrent Users (PCU)

400

1,800 1,646

350 320 325

305 309 1,600

295 Thousands

300

RMB 1,400

250 1,200 1,073

983 1,000 874 888

200

800

150

600

100 Users in

400

50 200

0 0

1Q07 2Q07 3Q07 4Q07 1Q08 1Q07 2Q07 3Q07 4Q07 1Q08

4Q07 and onward figures include ZT Online, ZT Online PTP and Giant Online

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Financial Highlights

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Solid Revenue Growth

Total Net Revenues, USD millions

12.7 %

Rate : wth

70 rly Gro

uarte

und Q 67.3

ompo

60 1Q08 C

Q07 – 59.6

50 54.1 48.6 40 41.7 30

1Q07 2Q07 3Q07 4Q07 1Q08

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Outstanding Profitability

Gross Profit, USD millions

Gross Margin (%)

70 12.1 % 100% 91.2% 89.6% ate : 89.2% 88.8% wth R

y Gro rterl

60 Qua

ound

omp 85.7% 60.0 80%

08 C

– 1Q

50 1Q07

51.1 48.0

60%

40 43.6 38.0 30

40%

20% 10

0 0% 1Q07 2Q07 3Q07 4Q07 1Q08

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Efficient Operation

Net Income, USD millions

Net Margin (%)

60% 3 80%

te: 10.

th Ra 71.8% 78.3% 71.4% Grow uarterly 76.8%

50 ound Q 70% Comp 71.6%

– 1Q08 48.3

1 Q07

40 45.8 60% 38.7 34.7

30 32.6 50%

20 40%

10 30%

0 20% 1Q07 2Q07 3Q07 4Q07 1Q08

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Growth Strategy & Execution

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Growth Strategy

Increase Player Loyalty and Enhance Online Community to 1 Grow Our Player Base

Strengthen Our Technology and Product Development 2 Platforms

Pursue Opportunities for Acquisitions, Strategic Joint Ventures 3 and Opportunistic Investments

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Grow Our Player Base

• Gamer First ideology and Free-To-

Play model Gamer First + Free-to-Play

Comprehensive features for all types of gamers ?Hardcore MMORPG with casual game elements Community

?Attract both male and female gamers

• Community and game “stickiness”

In-game

Group activities and team play rewards “Stickiness” revenue

Players grab their friends to join

• Players feel more “invested” in game

In-game revenue opportunities grow

Game life User number ARPU grows

• Players conduct “viral” marketing for cycle extends grows Giant

Blogs

Message boards Giant’s sustainable and highly

Videos scalable growth model

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Deepened Penetration in Medium/Smaller Cities and in Countryside

Unique and Effective Grassroots Strategy Leads to Expansion of Distribution Points

Metropolitan

Cities (1) Large Cities Increasing Urbanization Rate

(2)

population

700 50% 562.1 577.1 600 542.8 523.8 millions 502.1 480.6 500

MEDIUM/ 43.9% SMALLER 400 43.0%

In 41.8% 40% CITIES 300 40.5% 39.1%

Increasing 200 37.7%

100

0 30% 2001 2002 2003 2004 2005 2006 Urban population% of total population

COUNTRYSIDE

AREA

Robust Economic Growth in Medium / Small Cities and Countryside Area

• Medium / smaller cities and countryside area accounted for 59.2% of national GDP in 2006

• 2001 – 2006 CAGR of 12.0%

Source: China Statistics Yearbook 2007

1 Include Beijing, Shanghai and Guangzhou

2 Include Chongqing, Tianjin, Shenzhen, Qingdao, Xiamen, Ningbo, Dalian and capital cities of all provinces and autonomous regions

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Giant’s R&D and State of the Art Server Technology

Increase R&D Department to Over 800 Members by Year End

Advanced and Reliable Server Technology and Operational Infrastructure

Over 40,000 players can Advanced sever technology simultaneously interact in intended to enable 1 million the same game shard concurrent players in a single shard

Concurrent user capacity is larger than most other Will have the largest concurrent ZT Online MMO games currently Giant Online user capacity in a single shard operating in China among all MMO games in China

Enhanced Playability More Intense Interaction Complex Social Network

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Conclusion

To Develop and Operate the Largest Online Game Network in Asia by Providing the Most Compelling Games and Community Experiences

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NYSE Ticker GA Price $16.29

Company Overview Market Cap 3.9B

Shares Outstanding Approx 240M

Giant Interactive Group is a leading developer

Bloomberg data as per May 15, 2008

and operator of massively multiplayer online

(MMO) games for the growing online gaming community “2007 was an in China. The company’s high quality MMO game under a exciting year for free-to-play model is tailored to China’s core game audience Giant . We continued between the ages of 18 and 40. to grow by focusing on our strengths,

The company’s flagship game, ZT Online, was commercially launched in namely our passion January 2006 and was voted the most popular online game in China in 2006, for games, strong product according to IDC. development and

Investment Highlights technology

Yuzhu Shi

Key Success Factors A leading position in the online game market in China Chairman and CEO platforms, in Game Development Strong product and technology development and and our focus on creating fun and exciting

Greater interactivity enhancement capabilities game experiences for our customers.

Local appeal Extensive nationwide distribution and marketing networks With our strong marketing and distribution Comprehensive features Experienced management team expertise and distinguished development Continuous updates Strong operational and financial results pipeline, we are confident that this is only the beginning.”

A Leading Developer and Operator of Massive Multiplayer Online Games in China

China’s Exploding Online Game Market Dominance of Free-to-Play Games

(RMB¥ in millions) 19.9%

– 12’CAG 26,230

07’ 23,610 20,950

18,130 68% 71% 75% 78% 81%

84%

14,580 10,570

32% 29% 25% 22%

19% 16%

Source: IDC, 2008 2007 2008E 2009E 2010E 2011E 2012E Source: IDC, 2008, based on 2007 revenues

2007 2008E 2009E 2010E 2011E 2012E Subscription-Based Free-to-Play

Financial and Operational Highlights

Strong Top & Bottom Line Growth Increasing Active Paying Accounts Solid Margins

(US$ in millions)

80 1600 100%

70 1400 80%

60 67.3 1200 1,405 1447 92.4% 92.8% 91.2% 89.6% 88.8% 89.2% 1,318 60% 85.3% 85.7%

50 54.1 59.6 1000 1,248 71.3% 74.9% 78.2% 71.4% 71.6% 76.8% 71.8%

40 48.6 45.8 48.3 800 986 40% 62.6%

30 41.7 600 787 49.9% 34.7 38.7 698 20%

20 32.6 400 602 -4.3% 22.7 0%

10 20.1 200 117 220 220 320 295 305 309 325 1.6-0.1 9.2 5.8 15.1 11.3 14384

0 0 -20%

-10 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 Net Revenue Net Income Active Paying Accounts (APA) (in thousands) Gross Profit Margin Net Income Margin Average Revenue per User (ARPU) (in RMB)

www.ga-me.com

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1/2008 Neighboring 11/2006 01/2007 Friends* Flagship Game: Kua Fu Yuan Shi Wai Tao Yuan* Zheng*

ZT Online 07/2006

Feng Yu Tong 07/2007 Zhou* Zhong Zhi

Two-dimensional MMO role-playing 1,800,000 Cheng Cheng* game in ancient Chinese martial 1,600,000 arts setting 1,400,000 ACU

1,200,000 PCU

Surpassed the 2.1 million peak 1,000,000 concurrent user mark in

800,000

April 2008

600,000

Enables over 40,000 players 400,000 on a single shard 200,000

Regular expansion pack releases 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q enhance player interest and extend 2008

2006 2007 game lifecycle * Expansion Packs

Q4 07 & Q1 08 figures include ZT Online, ZT Online PTP and Giant Online

Upcoming Game Pipeline

Q1 2008 2008

Giant Online Empire of Sports King of Kings III

Free-to-play 2.5D 3D MMORPG Free-to-play 3D MMORPG with set in the first European medieval modern-era true multi-sports magical game military theme gaming world Second sequel in the King Launched open beta testing Exclusive license from Swiss- of Kings series, the first on March 28, 2008 based Empire of Sports Ltd. online game self-developed Reached PCU of over Games include basketball, in the Greater China region 344,000 in May 2008 football, tennis, skiing, in 2000 bobsleigh, and fitness 2008 launch in Taiwan and to be tailored for China

Key Growth Strategies Extensive Marketing Network

Expand and enhance our product offering Over 530 proprietary liaison offices Enhance interactive community features Over 270 distributors and 116,500 to attract new players and increase player retail outlets loyalty Over 3,000 dedicated liaison Expand our player base in China and personnel internationally Penetration in nationwide markets Strengthen our technology and operational with focus on medium to smaller platforms cities Pursue both organic and non-organic Frequent on-site internet café events growth opportunities

Contact Information

China: Hong Kong:: US:

Eric He, CFO Ruby Yim Mahmoud Siddig Giant Interactive Group Inc. Taylor Rafferty Taylor Rafferty +86-21-6451-5001 +852-3196-3712 +1-212-889-4350

IR@ZTGame.com giantinteractive@taylor-rafferty.com giantinteractive@taylor-rafferty.com