Financial Performance - For the six months ended June 30, 2021, the company reported total revenue of approximately RMB 109.5 million, a decrease of about 44.8% compared to RMB 198.3 million for the same period in 2020[8]. - The net profit attributable to the company's owners for the six months ended June 30, 2021, was approximately RMB 30.5 million, representing a decrease of about 5.8% from RMB 32.4 million in the same period of 2020[9]. - The company's gross profit for the first half of 2021 was RMB 47.1 million, with a gross margin of 43.0%[12]. - Gross profit for the six months ended June 30, 2021, was approximately RMB 47.1 million, a decrease of about 69.6% from RMB 154.6 million in the same period of 2020[26]. - The gross profit margin for the six months ended June 30, 2021, was approximately 43.0%, down from 78.0% in the same period of 2020[26]. - The company reported a net loss of RMB 13,822,000 from financial assets measured at fair value through profit or loss for the six months ended June 30, 2021[110]. - The company reported a total comprehensive income of RMB 34,897 thousand for the period, compared to RMB 20,446 thousand in 2020, an increase of 70.9%[79]. - The basic and diluted earnings per share for the period were RMB 0.012, down from RMB 0.013 in 2020[77]. - The company reported a net financial cost of RMB (1,153,000) for the six months ended June 30, 2021, compared to RMB (1,316,000) in the previous year[113]. Market Trends and Strategy - The global online gaming market is expected to generate $175.8 billion in revenue in 2021, with the mobile gaming market projected to reach $90.7 billion, a year-on-year growth of 4.4%[11]. - The Asia-Pacific region accounted for 50.2% of global gaming revenue in 2021, with China contributing $45.6 billion, making it the largest market in the region[11]. - The number of gaming users in China reached 670 million in the first half of 2021, reflecting a year-on-year growth of 1.4%[11]. - The company's strategic focus has shifted towards developing and operating mobile games, responding to the growing demand in the internet market for cloud-related services[11]. - The company plans to expand its business activities to include cloud computing and cloud storage services as part of its new business initiatives[11]. - The company aims to enhance its user experience by providing various game versions and maintaining a strong presence in over 100 countries and regions[11]. - The company will continue to focus on high-quality game products and leverage existing IP value, with plans to develop new titles such as "弹弹堂复古版" and "花开易梦阁" expected to launch in Q4 2021 or early 2022[13]. - The company aims to diversify its revenue sources by entering the cloud computing and cloud storage sectors, with the global cloud storage market projected to grow from $50.1 billion in 2020 to $137.3 billion by 2025, at a CAGR of 22.3%[16]. - The company plans to explore and expand into other potential areas, including cloud computing and related services, to enhance long-term sustainability and profitability[16]. - The company is exploring potential acquisitions to enhance its technology capabilities and broaden its game portfolio[169]. Operational Insights - The actual sales revenue of China's gaming market in the first half of 2021 was RMB 150.49 billion, representing a year-on-year growth of 7.9%[11]. - The company's online game revenue in the first half of 2021 was primarily driven by popular titles such as "弹弹堂" and "神曲" series[18]. - The average monthly active users for web games were approximately 0.8 million, while for mobile games, it was about 1.5 million[19]. - The average revenue per paying user for web games was approximately RMB 454, and for mobile games, it was RMB 227[19]. - The company has implemented cost control measures to strengthen its risk resistance amid the ongoing impact of the COVID-19 pandemic[17]. - The company will continue to strengthen its core product development and expand overseas market operations, enhancing its global presence in the gaming industry[16]. - The company is committed to IP licensing as a long-term strategy and will seek partnerships with quality developers to enhance its IP development capabilities[14]. - The company will continue to recruit and retain talent with attractive compensation policies to bolster its IP development capabilities[14]. - The company is actively seeking appropriate investment and collaboration opportunities to solidify and enhance its industry position[16]. Financial Position and Investments - Cash and cash equivalents, including restricted cash, totaled approximately RMB 371.7 million as of June 30, 2021, a slight decrease of 2.0% from RMB 379.3 million as of December 31, 2020[33]. - The debt-to-asset ratio as of June 30, 2021, was approximately 23.1%, down from 28.5% on December 31, 2020, primarily due to the repayment of bank loans[34]. - Capital expenditures for the six months ended June 30, 2021, totaled approximately RMB 222.1 million, a significant increase of 6,542.5% compared to RMB 3.3 million in the same period of 2020[35]. - The capital expenditures included RMB 182.7 million for cloud computing and RMB 37.2 million for cloud storage services[35]. - The company acquired a 49% stake in Wuxi Shouxin Network Technology Co., Ltd. for an initial investment of RMB 73.5 million, with an attributable performance of approximately RMB 37.2 million as of June 30, 2021[38]. - The company sold its investment in Shanghai Longrui Information Technology Co., Ltd. for approximately RMB 207.4 million, equivalent to its fair value as of December 31, 2020[40]. - The company reported a significant decrease in the value of non-listed investments, dropping from RMB 207,993,000 to RMB 20,573,000, a decline of approximately 90.1%[140]. - The company recognized an impairment provision of RMB 20,299,000 related to an investment in Shenzhen Longyou Tianxia Network Technology Co., Ltd., due to financial difficulties faced by the company[137]. - The company recorded a loss of RMB 1,435,000 from joint ventures as of June 30, 2021, compared to a loss of RMB 1,781,000 for the same period in 2020[132]. Corporate Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code during the six months ended June 30, 2021[68]. - The company has established an audit committee consisting of three independent non-executive directors[74]. - The previous auditor, Deloitte Touche Tohmatsu, resigned on May 12, 2021, and a new auditor, KPMG, was appointed on May 13, 2021[71]. - The company has maintained the required public float as per the listing rules[70]. - The company has adhered to relevant laws and regulations with no significant compliance issues reported as of June 30, 2021[72]. - The company is committed to maintaining compliance with the latest corporate governance codes as outlined in the listing rules[168]. Employee and Shareholder Information - Total employee compensation for the six months ended June 30, 2021, was approximately RMB 55 million, covering salaries, bonuses, and other benefits[42]. - As of June 30, 2021, the company had 321 full-time employees, with 47.98% in R&D, 33.33% in operations, and 18.69% in administration[42]. - The company’s employee housing loans amounted to RMB 1,510,000 as of June 30, 2021, compared to RMB 2,235,000 as of December 31, 2020, indicating a decrease of approximately 32.4%[136]. - The company issued 133,700,000 new shares to DianDian Interactive at a subscription price of HKD 2.59 per share, totaling HKD 346,283,000, which is about 5.10% of the existing issued share capital[66]. - The company did not declare any interim dividends for the six months ended June 30, 2021, consistent with the previous year[122]. - Major shareholders include Baohu Holdings Limited and Shanghai Baohu Investment Management Center, each holding 352,714,000 shares, accounting for 12.81%[56]. - Other significant shareholders include Shanghai Baopu Investment Management Co., Ltd. and Ningbo Haochu Investment Management Co., Ltd., each holding 353,586,000 shares, representing 12.84%[56].

Financial Performance - For the six months ended June 30, 2020, the company recorded total revenue of approximately RMB 198.3 million, an increase of about 91.6% compared to RMB 103.5 million for the same period in 2019[7]. - The profit attributable to the owners of the company for the six months ended June 30, 2020, was approximately RMB 32.4 million, representing an increase of about 226.5% compared to a loss of RMB 25.6 million for the same period in 2019[8]. - The adjusted net profit attributable to the owners of the company for the six months ended June 30, 2020, was approximately RMB 37.4 million, a significant increase of about 3,154.9% compared to a loss of RMB 1.2 million for the same period in 2019[8]. - The company's gross profit and gross margin for the six months ended June 30, 2020, were RMB 154.6 million and 78.0%, respectively[9]. - The total revenue for the six months ended June 30, 2020, was approximately RMB 198.3 million, an increase of about 91.6% compared to RMB 103.5 million for the same period in 2019[19]. - Gross profit for the six months ended June 30, 2020, was approximately RMB 154.6 million, an increase of about 81.5% compared to RMB 85.2 million in 2019, with a gross margin of 78.0%, down from 82.3%[21]. - The company reported a profit of RMB 32,526,000 for the six months ended June 30, 2020, compared to a loss of RMB 25,590,000 in 2019, marking a significant turnaround[31]. - Adjusted profit for the same period was RMB 37,509,000, up from a loss of RMB 1,223,000 in 2019[31]. - The comprehensive income for the period was RMB 20,446 thousand, compared to a comprehensive loss of RMB 25,521 thousand in the same period of 2019[74]. Market Trends - The global online gaming market is expected to generate revenue of USD 159.3 billion in 2020, with mobile gaming being the largest segment, projected to generate USD 72.2 billion, accounting for 13.3% of the global online gaming market[9]. - The Asia-Pacific online gaming market is expected to grow by approximately 9.9% in 2020, exceeding USD 78.4 billion, representing about 49.0% of the global online gaming market[9]. Strategic Plans - The company plans to continue focusing on high-quality game products and explore diversified revenue sources in the second half of 2020[10]. - The company aims to deepen its domestic market presence while expanding its overseas market operations in the second half of 2020[10]. - The company will continue to update and promote existing games while developing new games to strengthen its domestic market and enhance its global presence[10]. - The company plans to launch multiple mobile games in the second half of 2020, including "Alice's Wardrobe," which received positive user feedback during its August user testing[11]. - The mobile game "Arcadia" is expected to be released in November 2020, while "Dragon Slayer World," a large multiplayer online role-playing game, is set for a September release after a test in August 2020[11]. - The company aims to explore new market opportunities by developing games targeting niche segments, including casual and female-oriented games[11]. - The company is in negotiations for a new acquisition of a well-known game development company, which could enhance its game development capabilities if completed in the second half of 2020[11]. User Engagement - The average monthly active users for web games were approximately 1.2 million, while mobile games had about 1.3 million active users as of June 30, 2020[15]. - The average revenue per paying user for mobile games was RMB 446.1, while for web games it was RMB 392.4 as of June 30, 2020[15]. - The average monthly paying users for the reporting period was reported as a significant metric for assessing user engagement[155]. - The company achieved a notable increase in monthly active users, indicating strong user retention and engagement strategies[155]. Financial Position - Total cash and restricted cash decreased by 46.9% to RMB 132,331,000 as of June 30, 2020, primarily due to payments for the acquisition of Spicy Group and increased project investments[32]. - Total borrowings increased by 23.0% to RMB 54,600,000 as of June 30, 2020, compared to RMB 44,400,000 at the end of 2019[32]. - The company's debt-to-asset ratio improved to 35.7% as of June 30, 2020, down from 42.6% at the end of 2019, attributed to profits generated and payments related to the acquisition[35]. - The total assets as of June 30, 2020, amounted to RMB 1,772,729 thousand, down from RMB 1,941,961 thousand as of December 31, 2019[75]. - Total liabilities as of June 30, 2020, were RMB 633,084 thousand, compared to RMB 605,192 thousand as of December 31, 2019[76]. - The company reported a total equity of RMB 1,140,263 thousand as of June 30, 2020, an increase from RMB 1,114,834 thousand at the end of 2019[76]. Corporate Governance - The company has complied with all applicable codes of corporate governance during the reporting period[64]. - The board of directors is committed to maintaining high corporate governance standards to ensure transparency and accountability[154]. Future Outlook - The company plans to expand its market presence through new product launches and technological advancements in mobile gaming[155]. - Future outlook includes a focus on research and development to enhance gaming experiences and attract more users[155]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[155]. - The financial performance for the first half of 2020 showed a positive trend, with revenue growth compared to the previous period[157]. - The company aims to increase its user base by implementing targeted marketing strategies and promotional campaigns[155]. Risk Management - The financial risk factors include market risk, credit risk, and liquidity risk[89]. - The group has not made any changes to its risk management policies since the fiscal year ended December 31, 2019[89].