Financial Performance - Total revenue for the first half of 2022 was RMB 1,232.8 million, a decrease of 43.5% compared to RMB 2,180.1 million in the same period of 2021[8]. - The net loss attributable to shareholders for the first half of 2022 was RMB 21.9 million, compared to a profit of RMB 393.5 million in the first half of 2021[8]. - The company's revenue decreased by approximately 43.5% from RMB 2,180.1 million in the six months ended June 30, 2021, to RMB 1,232.8 million in the same period of 2022[30]. - Game publishing revenue fell by about 33.1% from RMB 1,525.3 million to RMB 1,019.9 million, primarily due to delays in obtaining licenses for new games[30]. - Game development revenue decreased by approximately 67.9% from RMB 567.0 million to RMB 182.1 million, attributed to a decline in monthly revenue from existing games and delays in new game launches[31]. - The gross profit dropped by about 40.3% from RMB 839.6 million to RMB 501.0 million, while the gross profit margin increased from 38.5% to 40.6%[34]. - The adjusted net loss attributable to owners of the parent was RMB 15.7 million, compared to a profit of RMB 401.8 million in the previous year[28]. - The company reported a net loss of RMB 25.4 million for the period, compared to a profit of RMB 378.3 million in the same period last year[30]. - The company reported a net amount of HKD 849.15 million for the issuance and development business as of December 31, 2022, compared to HKD 470.90 million for the same period in 2021, reflecting a significant increase[48]. User Metrics - Average monthly active users decreased to 12,780 thousand from 19,084 thousand in the previous year, a decline of 33.8%[10]. - Average monthly paying users fell to 941.4 thousand from 1,442 thousand, a decrease of 34.8%[10]. - The Average Revenue Per Paying User (ARPPU) was RMB 218.3, down from RMB 251.9, a decline of 13.3%[10]. - Total new registered users reached 38,367 thousand, down from 58,014 thousand, a decrease of 33.8%[10]. Research and Development - Research and development expenses totaled RMB 204.3 million, an increase of 65.1% year-on-year[9]. - The company increased its R&D investment to RMB 204.3 million in the first half of 2022, representing a year-on-year growth of 65.1%[12]. - The number of R&D personnel reached 632 in the first half of 2022[12]. - The company plans to enhance its R&D capabilities and expand its product offerings in the future[40]. Product Development and Launches - The company has launched 11 self-developed products and has 10 more in the pipeline[9]. - The company plans to launch multiple new games in the second half of 2022, including "召喚先鋒" and "代號：奇兵"[12]. - The mobile game "太古封魔錄" achieved a monthly revenue exceeding RMB 200 million shortly after its launch[13]. - The game "仙劍奇俠傳七" sold over 450,000 copies for PC and over 210,000 copies for cloud gaming by June 30, 2022[12]. - The game "大富翁10" surpassed 1.23 million copies sold globally by June 30, 2022[12]. - The game "Xianjian World," developed by the company's Mantianxing Studio, is the first domestic open-world game with elements of virtual reality, set to launch in the first half of 2023 after initial testing in late 2022[16]. Strategic Initiatives - The company is expanding its overseas publishing business, with several games launched in multiple regions[9]. - The company plans to focus on expanding its overseas publishing business to increase revenue share from international markets[34]. - The company is implementing a comprehensive overseas strategy, focusing on regions such as Hong Kong, Macau, Taiwan, Southeast Asia, Japan, South Korea, and Europe and America for game development and global distribution[22]. - The company is collaborating with various partners to expand its IP ecosystem, including digital collectibles and VR experiences[14]. Corporate Governance and Management - The company has complied with the applicable provisions of the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[49]. - The company's board consists of three executive directors and three independent non-executive directors, ensuring a high level of independence[49]. - The total remuneration for key management personnel was RMB 13,019,000 for the six months ended June 30, 2022, compared to RMB 10,518,000 in 2021[116]. Social Responsibility - The company has committed to social responsibility by establishing the "Zhong Shou You Dream Library" project, donating two libraries annually, with the tenth library completed in June 2022[19]. - In response to the COVID-19 pandemic, the company allocated RMB 1 million for purchasing anti-epidemic supplies in Hong Kong in March 2022[19]. - The company strictly adheres to regulations regarding underage gaming, with players under 12 prohibited from making in-game purchases, and those aged 12-16 limited to RMB 50 per transaction and RMB 200 monthly[19]. Financial Position - The group's total cash and cash equivalents decreased by approximately 45.5% from RMB 818.5 million on December 31, 2021, to RMB 446.2 million on June 30, 2022[42]. - The group's current ratio was 1.6 times as of June 30, 2022, compared to 1.9 times on December 31, 2021[42]. - The company's net assets as of June 30, 2022, were RMB 5,851,985 thousand, compared to RMB 5,793,862 thousand at the end of 2021[71]. - The group reported trade receivables aging analysis showing RMB 789,437,000 within 6 months, an increase from RMB 620,678,000 in the previous year[98]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[49]. - The total number of stock options granted is 50,000,000, with 2,080,000 exercised during the period[51]. - As of June 30, 2022, the company executives hold a total of 853,908,067 shares, representing 30.85% of the total shares issued[54]. - The company has a total of 39,455,000 stock options available for exercise after accounting for 12,625,000 options that have been exercised[51]. Market Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in user acquisition by the end of the fiscal year[131]. - The company is implementing a new marketing strategy focused on social media platforms, aiming for a 30% increase in brand awareness[131].

Financial Performance - In 2021, the total revenue of CMGE reached RMB 3,956.6 million, representing a year-on-year growth of 3.6%[7] - Adjusted net profit for 2021 was RMB 630.0 million, a decrease of 21.9% year-on-year[7] - Revenue from IP games reached RMB 2,965.5 million in 2021, representing a year-on-year growth of 12.4%[23] - Game publishing revenue decreased by 5.3% to RMB 2,819.6 million in 2021 from RMB 2,977.9 million in 2020, primarily due to delays in obtaining licenses for several planned game launches[35] - The company reported a net profit of RMB 593.9 million for the year ended December 31, 2021, compared to RMB 690.2 million for the previous year[32] User Engagement - The total number of newly registered users in 2021 was 116.9 million, an increase of 15.0% year-on-year[7] - Average monthly active users reached 19.1 million, reflecting a year-on-year growth of 3.1%[7] - Average monthly paying users increased to 1.4 million, up by 1.8% year-on-year[7] Research and Development - R&D investment rose to RMB 310.7 million in 2021, marking a 48.9% increase from RMB 208.6 million in 2020[7] - The number of R&D personnel increased by 30.0% to 624 in 2021[7] - The company is committed to long-term development strategies in game publishing and research and development, focusing on enhancing its proprietary R&D capabilities[22] Game Development and Releases - The total number of games operated online reached 83 by the end of 2021[7] - The company launched 20 new games in 2021, with 83 games available for download by the end of the year[26] - The company plans to launch several global-themed strategy games, including "Code: Chibi," "Summon Vanguard," and "Code: Qibing," starting in the first half of 2022[12] IP and Licensing - The group’s self-developed business revenue was RMB 905.0 million in 2021, representing a year-on-year growth of 23.9%[11] - In 2021, the group's IP licensing business revenue reached RMB 231.9 million, a year-on-year increase of 106.9%[15] - The company aims to create a competitive IP game ecosystem by acquiring high-quality licensed IPs, including new licenses such as "DreamWorks All-Stars" and "The King’s Avatar" in 2021[23] International Expansion - Overseas business revenue surged to RMB 458.5 million, a staggering increase of 7,260.0% year-on-year, accounting for 11.6% of total revenue[7] - The overseas publishing business is expected to continue high-speed growth, with "True Three Kingdoms" achieving the top position in the free charts in Hong Kong, Macau, and Singapore in its first month[18] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance, as detailed in the annual report[134] - The board of directors includes experienced members, with the CEO having over 10 years of experience in the mobile gaming industry[139] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, and has obtained all necessary licenses and permits for its operations[131] Social Responsibility and ESG - The group has been recognized for its social responsibility, receiving awards such as "Most Socially Responsible Listed Company" at the Golden Unicorn Awards[16] - The company emphasizes sustainable development and corporate social responsibility, integrating environmental management into business decisions[195] - Stakeholder engagement is prioritized, with transparent communication to understand expectations and improve sustainability strategies[197] Financial Management - The company has a total of 123 IPs, including 55 licensed IPs and 68 proprietary IPs, making it the largest IP reserve holder among Chinese game publishers, excluding Tencent Games[22] - The company has a strong focus on risk management and internal controls, as discussed in the audit committee meetings[136] - The company will continue to reassess its dividend policy based on its financial condition and current economic environment[181]

Financial Performance - The company's revenue for the first half of 2021 reached RMB 2,180.1 million, representing a year-on-year growth of 27.2%[8] - The net profit attributable to shareholders for the same period was RMB 393.5 million, an increase of approximately 36.8% year-on-year[10] - The adjusted net profit for the first half of 2021 was RMB 401.8 million, reflecting a year-on-year growth of 17.6%[8] - The gross profit for the period was RMB 839.6 million, with a gross margin improvement from 31.0% to 38.5%[10] - The company's revenue for the six months ended June 30, 2021, was RMB 2,180.1 million, representing an increase of approximately 27.2% from RMB 1,714.0 million for the same period in 2020[25] - The adjusted net profit for the six months ended June 30, 2021, was RMB 401.8 million, up about 17.6% from RMB 341.6 million for the same period in 2020[26] - The gross profit for the six months ended June 30, 2021, was RMB 839.6 million, compared to RMB 531.5 million in the same period of 2020[25] - The group reported a pre-tax profit of RMB 422.6 million for the six months ended June 30, 2021, an increase from RMB 301.5 million in the previous year[25] - The group's profit before tax increased by approximately 40.2% from RMB 301.5 million for the six months ended June 30, 2020, to RMB 422.6 million for the six months ended June 30, 2021[44] - The group's net profit increased by approximately 37.0% from RMB 276.1 million for the six months ended June 30, 2020, to RMB 378.3 million for the six months ended June 30, 2021[46] User Metrics - The average monthly active users increased to 19,084 thousand, up from 15,053 thousand in the same period last year[11] - The average monthly paying users rose to 1,442 thousand, compared to 1,135 thousand in the previous year[11] - The total number of new registered users reached 58,014 thousand, an increase from 54,358 thousand year-on-year[11] - Monthly paying users reached 1.2 million, a 30% increase from the last quarter, indicating strong user retention and monetization[146] Game Development and IP - The company holds a total of 118 IPs, including 50 licensed IPs and 68 self-owned IPs, making it the Chinese game company with the most IPs[10] - The company launched multiple games in both the Chinese mainland and overseas markets during the first half of 2021, with 85 games available for download by June 30, 2021[10] - The company aims to continue expanding its game offerings and enhancing its IP portfolio to drive future growth[10] - The company's self-publishing business generated revenue of RMB 1,525.3 million in the first half of 2021, representing a year-on-year growth of approximately 2.4%[12] - Revenue from the game development business reached RMB 567.0 million, showing a significant year-on-year increase of approximately 156.8%[12] - The overseas publishing business recorded revenue of RMB 219.7 million, with a remarkable year-on-year growth of approximately 6,250.4%[13] - The company's intellectual property licensing revenue was approximately RMB 87.8 million, reflecting a year-on-year increase of about 2,012.6%[15] - The company completed investments in three game development firms, establishing exclusive publishing rights for several upcoming games, including "Codename: Shanhai" and a card RPG based on a popular novel IP[14] - The company plans to launch multiple new mobile games, including "New Sword and Fairy" and an open-world RPG titled "Code: World," expected to be released in the second half of 2021 and 2023, respectively[23] Strategic Partnerships - A strategic partnership was formed with Huawei to leverage their ecosystem for game distribution and IP development, enhancing resource sharing and mutual benefits[16] - The company entered into a collaboration agreement with Bilibili, securing exclusive operational rights for several games and prioritizing cooperation on IP development[16] - The company will collaborate with Tencent Penguin Pictures and iQIYI to produce various adaptations of the "Sword and Fairy" IP, including TV dramas and animations[23] Market Expansion - The company aims to strengthen its overseas market presence, launching games like "New Xianjian Qixia Chuan: Tie Xue Dan Xin" in Vietnam, Korea, and Thailand in the second half of 2021[22] - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of the next fiscal year[145] Financial Position and Investments - The total cash and cash equivalents increased by approximately 33.3% from RMB 794.9 million as of December 31, 2020, to RMB 1,059.8 million as of June 30, 2021[47] - The current ratio improved from 2.1 times as of December 31, 2020, to 2.9 times as of June 30, 2021[47] - The group's capital expenditure commitments increased from RMB 43.7 million as of December 31, 2020, to RMB 120.8 million as of June 30, 2021, primarily for purchasing IP, game licenses, and equity investments[50] - The company agreed to acquire a 49% indirect stake in Beijing Softstar for a total consideration of HKD 641.8 million, enhancing its competitive edge in the IP game ecosystem[23] - The company raised approximately HKD 849.15 million from a subscription agreement completed on May 10, 2021, to enhance its IP game publishing and development business[53] Operational Costs and Expenses - The group's sales cost increased by approximately 13.4% from RMB 1,182.6 million in the six months ended June 30, 2020, to RMB 1,340.5 million in the six months ended June 30, 2021[32] - Sales and distribution expenses increased by approximately 119.3% from RMB 102.7 million in the six months ended June 30, 2020, to RMB 225.3 million in the six months ended June 30, 2021[37] - Administrative expenses increased by approximately 10.4% from RMB 166.6 million in the six months ended June 30, 2020, to RMB 183.9 million in the six months ended June 30, 2021, primarily due to increased R&D investment[39] - R&D expenses increased by approximately 55.4% from RMB 79.6 million in the six months ended June 30, 2020, to RMB 123.8 million in the six months ended June 30, 2021[39] Governance and Compliance - The board has not separated the roles of Chairman and CEO, believing that this structure ensures consistent internal leadership and effective strategic planning[64] - The company has a high level of independence in its board composition, consisting of three executive directors, one non-executive director, and three independent non-executive directors[64] - The company has adopted a standard code of conduct for directors and employees regarding securities trading, confirming compliance from January 1 to June 30, 2021[65] - The audit committee reviewed the unaudited consolidated financial statements and discussed matters related to audit, risk management, and internal controls[67] Employee and Shareholder Information - As of June 30, 2021, the company had approximately 1,115 full-time employees, emphasizing the importance of attracting and retaining qualified staff[68] - The company has implemented competitive compensation and performance evaluation systems as part of its human resources strategy[68] - The major shareholders include Mr. Xiao and Mr. Xian, with their combined holdings exceeding 60% of the total shares[80] - The company’s equity structure shows a diverse range of interests, with multiple entities holding significant stakes, including 30.85% by招商永隆信託有限公司[80] Future Outlook - Future guidance indicates expected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[146] - The company is exploring potential acquisitions to enhance its technology capabilities and expand its user base[145]

Financial Performance - In 2020, CMGE reported revenue of RMB 3,820.3 million, a year-on-year increase of 25.8%[19] - The adjusted net profit for 2020 was RMB 807.0 million, representing a year-on-year growth of 32.1%[19] - The company's revenue for the year ended December 31, 2020, was RMB 3,820.3 million, representing a growth of approximately 25.8% compared to RMB 3,036.3 million for the year ended December 31, 2019[54] - Adjusted net profit for the year ended December 31, 2020, was RMB 806.9 million, an increase from RMB 611.0 million in the previous year[53] - The gaming development business achieved a revenue of RMB 730.3 million for the year ended December 31, 2020, representing a year-on-year growth of 73.4%[44] - Game publishing revenue increased by approximately 16.6% to RMB 2,977.9 million, driven by strong performance from previously released games[55] - The company's gross profit increased by 12.9% to RMB 1,223.3 million, while the gross margin decreased from 35.7% to 32.0%[62] - Total sales costs increased by 33.0% to RMB 2,597.1 million, primarily due to increased revenue and higher revenue-sharing with distribution channels[58] - The company reported a net profit attributable to equity holders of RMB 701.3 million for the year, compared to RMB 248.3 million in the previous year[54] User Engagement and Market Reach - The total number of new registered users reached 101.6 million, an increase of 18.6% compared to the previous year[19] - The average monthly active users reached 18.5 million, up 16.0% year-on-year[19] - The average monthly paying users reached 1.4 million, reflecting a year-on-year growth of 17.8%[19] - The total number of registered users increased by approximately 18.6% year-on-year, reaching a cumulative total of 410 million users by December 31, 2020[39] - The average monthly active users rose to 18,483 thousand in 2020, compared to 15,931 thousand in 2019[40] - The average monthly paying users increased to 1,414 thousand in 2020, up from 1,200 thousand in 2019[40] Game Development and Releases - As of December 31, 2020, the total number of games operated online by CMGE was 81[19] - The group launched multiple new self-developed games in 2020, including "Dragon City Legend," which received a strong market response[22] - The mobile game "Legend World: Thunder Dominance" maintained an average of over 1 million monthly active users in 2020, with the highest monthly revenue reaching RMB 107.7 million[22] - The game "妖怪名單之前世今生" launched on September 25, 2020, quickly entered the Apple Store free chart at second place[20] - The game "家庭教師" reached second place in the Apple Store free chart in its first month of launch in mainland China[20] - The mobile game "Happy Real Mahjong" ranked second in sales on major platforms like Huawei, OPPO, and VIVO, with a monthly revenue of RMB 20 million[22] - The mobile game "Tsunami Starry Sky: Dawn," based on a popular novel, achieved the top spot in sales charts in Hong Kong, Macau, and Taiwan within its first month of release[31] - The group successfully launched "New Legend of the Condor Heroes" in January 2021, reaching the top of the free charts in Hong Kong, Macau, and Taiwan on the launch day[32] Strategic Focus and Future Plans - CMGE's strategic focus includes IP-based, high-quality, integrated research and operation, ecological, global, and brand development[19] - The group plans to continue focusing on creating high-quality games and deepening a competitive IP game ecosystem in 2021[27] - The self-publishing business in mainland China is expected to maintain stable growth, with several new games planned for release, including "Douluo Dalu: Dou Shen Zai Lin" and "Zhen Hun Jie: Tian Sheng Wei Wang" in 2021[27] - The company plans to enhance its IP ecosystem by investing in IP resources and acquiring excellent development teams in 2021[34] - The company aims to strengthen its self-developed game capabilities through acquisitions and partnerships in 2021[34] - The company plans to launch multiple new games in 2021, including "My Sword Diary," which focuses on long-term retention and is expected to become a stable product for the group[32] Research and Development - Research and development investment increased from RMB 160.8 million in 2019 to RMB 208.6 million in 2020, a year-on-year increase of 29.7%[22] - The self-developed business is projected to continue rapid growth, with an expected increase in R&D personnel to around 800 in 2021, nearly doubling from 2020[32] - The group is committed to enhancing its R&D competitiveness by collaborating with experienced developers and establishing new R&D teams for various game genres[32] Corporate Governance and Social Responsibility - The group has been actively involved in social responsibility initiatives, including donations exceeding RMB 1.45 million during the COVID-19 pandemic[25] - The company has been recognized as one of the top 10 game companies for social responsibility in China, reflecting its contributions to the industry and society[26] - The company has committed to reducing the environmental impact of its business activities[115] - The company has not incurred any fines or penalties for non-compliance with environmental regulations during the reporting period[115] Financial Position and Investments - The company raised approximately HKD 536.8 million through a placement of 180,000,000 shares at HKD 3.02 per share on December 4, 2020[80] - The company recorded a net cash outflow from investing activities of RMB 884.7 million for the year ended December 31, 2020, primarily due to purchases of financial assets and acquisitions[83] - The current ratio improved to 2.1 as of December 31, 2020, compared to 2.0 in 2019, indicating better short-term financial health[85] - The capital debt ratio decreased to 9.4% as of December 31, 2020, down from 11.9% in 2019, showing a reduction in leverage[85] - The company has established a contractual arrangement to operate in China through its wholly-owned subsidiary, Shengyue Software, due to restrictions on foreign investment in the mobile gaming sector[176] Risks and Compliance - The company faces various risks, including the ability to secure game licenses and maintain player engagement amid evolving regulations in China[111] - The company is subject to potential tax implications due to differing tax rates applicable to Shengyue Software and the Chinese operating entity, which may adversely affect financial performance[178] - The company has implemented internal control measures, including quarterly reviews by the board to address significant issues arising from the contractual arrangement[182] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, with no significant violations reported as of the report date[196]

Financial Performance - The company achieved a revenue of RMB 3,036.3 million in 2019, representing a year-on-year increase of 90.2%[12] - Adjusted net profit for 2019 was RMB 611.0 million, up 82.1% compared to the previous year[12] - Revenue from game publishing business amounted to RMB 2,553.2 million, reflecting an increase of approximately 82.3% year-on-year[12] - The company achieved a total revenue of RMB 3,036.3 million in 2019, with IP games contributing RMB 1,561.0 million, representing a year-on-year growth of about 155.9%[24] - The company's revenue for the year ended December 31, 2019, was RMB 3,036.3 million, an increase from RMB 1,596.2 million in 2018, representing a growth of approximately 90.2%[37] - The adjusted net profit for the year ended December 31, 2019, was RMB 611.0 million, up about 82.1% from RMB 335.5 million in 2018[39] - The gross profit for the year ended December 31, 2019, was RMB 1,083.2 million, compared to RMB 532.5 million in 2018, indicating a significant increase[37] - The gross profit margin for the year ended December 31, 2019, was 35.7%, up from 33.4% in 2018[73] - Revenue for the last fiscal year reached $500 million, representing a 15% increase compared to the previous year[182] User Engagement and Growth - The average monthly paying user count reached 1.2 million, with a conversion rate of 7.5%, exceeding industry averages[12] - Average monthly active users increased to 15,930,745 in 2019, a 44.1% year-over-year growth from 11,058,128 in 2018[27] - Average monthly paying users rose to 1,200,298, reflecting a 55.0% increase compared to 774,532 in 2018[27] - Total new registered users reached 85,712,733 in 2019, up 28.2% from 66,849,648 in 2018[27] - User engagement metrics showed a 15% increase in daily active users (DAUs) compared to the previous quarter, reaching 5 million DAUs[178] - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[182] Game Development and Publishing - The internally developed game "Legend World: Thunder Dominance" achieved a peak monthly revenue of over RMB 200 million, with nearly 1.3 million active users[13] - The game development segment generated revenue of RMB 421.3 million, marking a year-on-year growth of approximately 136.8%[13] - The company launched 33 new games in 2019, including popular titles such as "Dragon Ball Awakening" and "Gun God: Border King" which contributed significantly to revenue[12] - The company plans to launch 38 new games in 2020, including titles like "Xuan Yuan Sword: Sword of Origin" and "True Three Kingdoms: Domination" among others[16] - The company plans to launch three new mobile games in the upcoming quarter, aiming to capture a larger market share[182] Strategic Initiatives and Partnerships - The company has established a partnership with a total investment of RMB 300.0 million to invest in strategic emerging industries and other key development sectors[15] - The company has made charitable contributions totaling RMB 1.4 million to support COVID-19 relief efforts in Hubei province[18] - The company has established the National Legend Industry Alliance with around 50 participants to develop popular IP "Legend" and is expected to benefit from this leadership role[32] - The strategic cooperation agreement with Seventh Avenue Holdings includes exclusive rights for game publishing and operations, enhancing the company's market presence[89] - The partnership with Shenzhen Angel Investment Guidance Fund provides the company with significant capital strength for further investments[137] Financial Position and Investments - Total assets as of December 31, 2019, were RMB 5,208.1 million, while total liabilities stood at RMB 1,496.5 million[9] - Cash and cash equivalents increased from RMB 144.4 million at the beginning of 2019 to RMB 771.1 million by the end of the year, reflecting a net increase of RMB 626.1 million[63] - The net cash flow from operating activities was RMB 310.4 million for the year ended December 31, 2019[66] - The net cash flow used in investing activities was RMB 1,318.9 million, primarily due to acquisitions and investments in financial assets[67] - The net cash flow from financing activities for the year ended December 31, 2019, was RMB 1,634.6 million, primarily due to proceeds from share issuance of RMB 1,350.5 million and new bank loans of RMB 490.6 million[68] Corporate Governance and Management - The company emphasizes high standards of corporate governance, focusing on principles of integrity, accountability, transparency, independence, and fairness[189]. - The board of directors consists of two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence[194] - The company has implemented good governance policies and measures, with the board responsible for overseeing corporate governance duties[189]. - The board has established four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Corporate Governance Committee[200] - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance from the listing date to December 31, 2019[191] Market Expansion and Future Outlook - The company expects significant growth in overseas revenue, with multiple games set to launch in international markets in 2020[17] - The company plans to expand its overseas gaming business, with multiple games scheduled for release in 2020, including "Age of Myth Genesis" and "True Three Kingdoms: Dominance"[35] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by the end of 2024[178] - Future guidance indicates an expected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[182] Risks and Compliance - The company faced various risks, including the potential inability to secure game agency rights and IP licenses, which could impact future growth[90] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, with no significant violations reported as of the report date[168] - The company is prohibited from directly holding equity in the Chinese operating entity due to foreign investment restrictions[149] - The company confirmed that there were no new contracts established, renewed, or repeated with the Chinese operating entity from the listing date to December 31, 2019[156]