SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13G
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Amendment No. 1
INFORMATION STATEMENT PURSUANT TO RULES 13d-1 AND 13d-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934
KONGZHONG CORPORATION
(NAME OF ISSUER)
Common Stock, $0.001 par value
(TITLE OF CLASS OF SECURITIES)
500479104
(CUSIP NUMBER)
December 31, 2005
(Date of Event which requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[ ] Rule 13d-1(b)
[x] Rule 13d-1(c)
[ ] Rule 13d-1(d)
(Page 1 of 16 Pages)
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* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
CUSIP No. 500479104 13G/A Page 2 of 16 Pages
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Advisory Partners
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ______________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
2,235,000
OWNED BY ______________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ______________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
2,235,000
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
2,235,000
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
6.5%
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(12) TYPE OF REPORTING PERSON **
PN; IA
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 500479104 13G/A Page 3 of 16 Pages
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(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Partners I
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ______________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
1,189,250
OWNED BY ______________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ______________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
1,189,250
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,189,250
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
3.46%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 500479104 13G/A Page 4 of 16 Pages
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(1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Philip J. Hempleman
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF (5) SOLE VOTING POWER
525,000
SHARES ______________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
2,235,000
OWNED BY ______________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
525,000
REPORTING ______________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
2,235,000
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
2,760,000
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.03%
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(12) TYPE OF REPORTING PERSON **
IN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 500479104 13G/A Page 5 of 16 Pages
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(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Offshore Fund Ltd.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
British Virgin Islands
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ______________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
999,750
OWNED BY ______________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ______________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
999,750
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
999,750
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.91%
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(12) TYPE OF REPORTING PERSON **
CO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 500479104 13G/A Page 6 of 16 Pages
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(1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Partners Fund II, L.P.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ______________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
717,500
OWNED BY ______________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ______________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
717,500
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
717,500
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.09%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 500479104 13G/A Page 7 of 16 Pages
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(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Ardsley Partners Institutional Fund, L.P.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ______________________________________________________________
BENEFICIALLY (6) SHARED VOTING POWER
471,750
OWNED BY ______________________________________________________________
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ______________________________________________________________
PERSON WITH (8) SHARED DISPOSITIVE POWER
471,750
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
471,750
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
1.37%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 500479104 13G/A Page 8 of 16 Pages
The Schedule 13G filed on February 14, 2006 is hereby amended by this
Amendment No. 1 to the Schedule 13G.
ITEM 1(a). NAME OF ISSUER:
The name of the issuer is KONGZHONG CORPORATION(the "Company").
ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
35th Floor Tengda Plaza, No. 168 Xizhimenwai Street, Beijing, China
100044
ITEM 2(a). NAME OF PERSON FILING:
This statement is filed by:
(i) Ardsley Partners Fund II, L.P., a Delaware limited partnership ("AP
II"), with respect to the shares of Common Stock (defined in Item
2(d) below) directly owned by it;
(ii) Ardsley Partners Institutional Fund, L.P., a Delaware limited
partnership ("Ardsley Institutional"), with respect to the shares of
Common Stock directly owned by it;
(iii) Ardsley Offshore Fund Ltd., a British Virgin Islands Corporation
("Ardsley Offshore"), with respect to the shares of Common Stock
directly owned by it;
(iv) Ardsley Advisory Partners, a New York general partnership
("Ardsley") which serves as Investment Manager of Ardsley Offshore,
and as Investment Adviser of AP II, Ardsley Institutional and
certain managed accounts, with respect to the Common Stock directly
owned by Ardsley Offshore, AP II, Ardsley Institutional and the
managed accounts;
(v) Ardsley Partners I, a New York general partnership ("Ardsley
Partners") which serves as General Partner of Ardsley, AP II and
Ardsley Institutional; and
(vi) Philip J. Hempleman ("Mr. Hempleman"), the managing partner of
Ardsley and of Ardsley Partners and may, by virtue of his position
as managing partner, be deemed to have power to direct the voting
and disposition of the Common Stock held or controlled by Ardsley,
Ardsley Partners, AP II, Ardsley Institutional, Ardsley Offshore and
the managed accounts. Mr. Hempleman disclaims beneficial ownership
of the Common Stock reported herein, other than the portion of such
shares which relates to his individual economic interest in AP II.
The foregoing persons are hereinafter sometimes collectively
referred to as the "Reporting Persons". Any disclosures herein with respect to
persons other than the Reporting Persons are made on information and belief
after making inquiry to the appropriate party.
ITEM 2(b). ADDRESS OF PRINCIPAL OFFICE OR, IF NONE, RESIDENCE:
The address of the business office of each of the Reporting Persons, with
the exception of Ardsley Offshore is 262 Harbor Drive, Stamford, Connecticut
06902.
The address of the business office of Ardsley Offshore is Romasco Place,
Wickhams Cay 1, Roadtown Tortola, British Virgin Islands.
ITEM 2(c). CITIZENSHIP:
Ardsley and Ardsley Partners are New York general partnerships. AP II and
Ardsley Institutional are Delaware limited partnerships. Ardsley Offshore is a
British Virgin Islands Corporation. Mr. Hempleman is a United States Citizen.
ITEM 2(d). TITLE OF CLASS OF SECURITIES: Common Stock, $0.001 par value ("Common
Stock")
ITEM 2(e). CUSIP NUMBER: 500479104
CUSIP No. 500479104 13G/A Page 9 of 16 Pages
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13d-1(b), OR 13d-
2(b), CHECK WHETHER THE PERSON FILING IS A:
(a) [ ] Broker or dealer registered under Section 15 of the Act
(b) [ ] Bank as defined in Section 3(a)(6) of the Act
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the
Act
(d) [ ] Investment Company registered under Section 8 of the
Investment Company Act
(e) [ ] Investment Adviser registered under Section 203 of the
Investment Advisers Act of 1940
(f) [ ] Employee Benefit Plan, Pension Fund which is subject to
the provisions of the Employee Retirement Income Security
Act of 1974 or Endowment Fund; see Rule 13d- 1(b)(1)(ii)(F)
(g) [ ] Parent Holding Company, in accordance with Rule 13d-
1(b)(ii)(G); see item 7
(h) ( ) Group, in accordance with Rule 13d-1(b)(1)(ii)(H)
If this statement is filed pursuant to Rule 13d-1(c), check the box. [X]
CUSIP No. 500479104 13G/A Page 10 of 16 Pages
ITEM 4. OWNERSHIP.
A. Ardsley Advisory Partners
(a) Amount beneficially owned: 2,235,000
(b) Percent of class: 6.5% The percentages used herein and in the
rest of Item 4 are calculated based upon the 34,380,000 shares of Common Stock
issued and outstanding as of August 24, 2005 as reflected on Bloomberg.
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 2,235,000
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
2,235,000
B. Ardsley Partners I
(a) Amount beneficially owned: 1,189,250
(b) Percent of class: 3.46%
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 1,189,250
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
1,189,250
C. Philip J. Hempleman
(a) Amount beneficially owned: 2,760,000
(b) Percent of class: 8.03%
(c) (i) Sole Power to vote or direct the vote: 525,000
(ii) Shared power to vote or direct the vote:2,235,000
(iii) Sole power to dispose or direct the disposition: 525,000
.. (iv) Shared power to dispose or direct the disposition:
2,235,000
D. Ardsley Offshore Fund Ltd.
(a) Amount beneficially owned: 999,750
(b) Percent of class: 2.91%
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 999,750
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
999,750
E. Ardsley Partners Fund II, L.P.
(a) Amount beneficially owned: 717,500
(b) Percent of class: 2.09%.
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 717,500
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
717,500
F. Ardsley Partners Institutional Fund, L.P.
(a) Amount beneficially owned: 471,750
(b) Percent of class: 1.37%
(c) (i) Sole Power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote: 471,750
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
471,750
CUSIP No. 500479104 13G/A Page 11 of 16 Pages
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not applicable.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Ardsley, the Investment Manager of Ardsley Offshore and the Investment
Adviser of certain managed accounts, has the power to vote and direct the
disposition of the proceeds from the sale of the shares of Common Stock owned by
Ardsley Offshore and the managed accounts, and accordingly may be deemed the
direct "beneficial owner" of such shares of Common Stock.
Ardsley, the Investment Adviser of AP II and Ardsley Institutional shares
the power to vote and direct the disposition of the proceeds from the sale of
the shares of Common Stock owned by AP II and Ardsley Institutional, and
accordingly may be deemed the direct "beneficial owner" of such shares of Common
Stock.
Ardsley Partners, the General Partner of AP II and Ardsley Institutional
shares the power to vote and direct the disposition of the shares of Common
Stock owned by AP II and Ardsley Institutional, and accordingly may be deemed
the direct "beneficial owner" of such shares of Common Stock.
Mr. Hempleman is the Managing Partner of Ardsley and Ardsley Partners and in
that capacity directs their operations and therefore may be deemed to be the
indirect "beneficial owner" of the shares of Common Stock owned by Ardsley
Offshore, AP II, Ardsley Institutional and the managed accounts. Mr. Hempleman
also has the power to vote and direct the disposition of the proceeds from the
sale of the shares of Common Stock that he owns individually.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable.
CUSIP No. 500479104 13G/A Page 12 of 16 Pages
ITEM 10. CERTIFICATION. (if filing pursuant to Rule 13d-1(b))
By signing below I certify, to the best of their knowledge and belief,
the securities referred to above were acquired in the ordinary course of
business, were not acquired for the purpose of and do not have the effect of
changing or influencing the control of the issuer of such securities and were
not acquired in connection with or as a participant in any transaction having
such purposes or effect.
CUSIP No. 500479104 13G/A Page 13 of 16 Pages
SIGNATURE
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information set forth in this statement
is true, complete and correct.
DATED: as of February 14, 2006
ARDSLEY PARTNERS FUND II, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:/s/ Steve Napoli*
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Steve Napoli
General Partner
ARDSLEY PARTNERS INSTITUTIONAL FUND, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:/s/ Steve Napoli*
-----------------------
Steve Napoli
General Partner
ARDSLEY OFFSHORE FUND LTD.
BY:/s/ Neil Glass
-----------------------
Neil Glass
Vice-President and Administrative Manager
ARDSLEY ADVISORY PARTNERS
By: ARDSLEY PARTNERS I
GENERAL PARTNER
BY:/s/ Steve Napoli*
-----------------------
Steve Napoli
General Partner
CUSIP No. 500479104 13G/A Page 14 of 16 Pages
ARDSLEY PARTNERS I
BY: PHILIP J. HEMPLEMAN
GENERAL PARTNER
BY: /s/ Steve Napoli*
-----------------------
Steve Napoli
General Partner
PHILIP J. HEMPLEMAN, INDIVIDUALLY
BY: /s/ Steve Napoli*
-----------------------
Steve Napoli
As attorney in fact for
Philip J. Hempleman
CUSIP No. 500479104 13G/A Page 15 of 16 Pages
EXHIBIT 1
JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
The undersigned acknowledge and agree that the foregoing statement
on Schedule 13G/A is filed on behalf of each of the undersigned and that all
subsequent amendments to this statement on Schedule 13G/A shall be filed on
behalf of each of the undersigned without the necessity of filing additional
joint filing statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning him, her or it contained herein, but
shall not be responsible for the completeness and accuracy of the information
concerning the other entities or persons, except to the extent that he, she or
it knows or has reason to believe that such information is inaccurate.
Dated as of February 14, 2006
ARDSLEY PARTNERS FUND II, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:/s/ Steve Napoli*
-----------------------
Steve Napoli
General Partner
ARDSLEY PARTNERS INSTITUTIONAL FUND, L.P.
BY: ARDSLEY PARTNERS I,
GENERAL PARTNER
BY:/s/ Steve Napoli*
-----------------------
Steve Napoli
General Partner
ARDSLEY OFFSHORE FUND LTD.
BY:/s/ Neil Glass
-----------------------
Neil Glass
Vice-President and Administrative Manager
ARDSLEY ADVISORY PARTNERS
By: ARDSLEY PARTNERS I
GENERAL PARTNER
BY:/s/ Steve Napoli*
-----------------------
Steve Napoli
General Partner
CUSIP No. 500479104 13G/A Page 16 of 16 Pages
ARDSLEY PARTNERS I
BY: PHILIP J. HEMPLEMAN
GENERAL PARTNER
BY: /s/ Steve Napoli*
-----------------------
Steve Napoli
General Partner
PHILIP J. HEMPLEMAN, INDIVIDUALLY
BY: /s/ Steve Napoli*
-----------------------
Steve Napoli
* Evidence of Power of Attorney was filed with the Schedule 13G filed on
February 14, 2006 and incorporated by reference into this filing.