Financial Performance - Total revenue for 2021 was RMB2,098.2 million, an increase of 21.5% compared to RMB1,726.7 million in 2020[27]. - Gross profit for 2021 increased by 8.5% year-on-year to RMB263.3 million[27]. - Operating profit for 2021 increased by 0.3% year-on-year to RMB95.4 million[27]. - Profit after tax for 2021 decreased by 6.8% year-on-year to RMB62.3 million[27]. - The adjusted EBITDA for 2021 was RMB 121,390, down from RMB 128,723 in 2020[45][46]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB, representing a year-over-year growth of 25%[137]. - Adjusted Net Profit for 2021 was RMB 80.46 million, down 7.5% from RMB 87.04 million in 2020[90]. Revenue Breakdown - Revenue from mobile advertising amounted to RMB2,005.1 million in 2021, representing a year-on-year increase of 20.5%[32]. - Revenue from online video distribution and game co-publishing amounted to RMB85.1 million and RMB8.0 million, respectively[32]. - Mobile game distribution revenues rose by 35.7% from RMB1,428.3 million in 2020 to RMB1,938.1 million in 2021[61]. - Mobile app distribution revenues decreased by 71.5% from RMB235.3 million in 2020 to RMB67.0 million in 2021[61]. - Revenues from mobile advertising increased by 20.5% from RMB1,663.6 million in 2020 to RMB2,005.1 million in 2021[53]. - Online-video distribution services generated revenues of RMB85.1 million in 2021, representing an increase of RMB29.7 million, or 53.6% from 2020[65]. Cost and Expenses - Cost of sales increased by 23.6% from RMB1,484.0 million in 2020 to RMB1,834.9 million in 2021[70]. - Selling and distribution expenses decreased by 9.1% from RMB16.5 million in 2020 to RMB15.0 million in 2021, mainly due to reduced marketing expenses[70]. - Research and development expenses decreased by 8.8% from RMB73.5 million in 2020 to RMB67.0 million in 2021, primarily due to reduced system research expenses[73]. - Administrative expenses increased by 14.6% from RMB40.4 million in 2020 to RMB46.3 million in 2021, mainly due to higher professional service expenses[75]. - Other expenses and losses increased from RMB15.1 million in 2020 to RMB38.5 million in 2021, primarily due to increased impairment loss on accounts receivable[75]. Assets and Equity - The total assets of the company as of December 31, 2021, were RMB 1,845,363, an increase from RMB 1,571,620 in 2020[50]. - The total equity increased to RMB 1,390,913 in 2021, compared to RMB 1,156,798 in 2020[50]. - Cash and bank balances increased by 85.1% to RMB 444.88 million as of December 31, 2021, compared to RMB 240.35 million in 2020[94]. - Current assets rose by 18.3% to RMB 1,572.88 million in 2021, up from RMB 1,329.75 million in 2020[94]. - Net current assets grew by 23.9% to RMB 1,138.25 million in 2021, compared to RMB 918.37 million in 2020[94]. Strategic Initiatives - The Group entered into a strategic cooperation with East West Bank to promote in-depth cooperation on development between the two parties[20]. - The Group hosted the 2021 Quick App Alliance Developers Conference to broaden the ecosystematic layout and development model of the industry[19]. - The company plans to continue investing in research and development to enhance its adaptability in the industry[39]. - The company aims to expand its channels, customer base, and markets in 2022[39]. - The company will collaborate with car-terminal working group members to provide customized internet services for smart vehicles[39]. Market and Product Development - The number of devices equipped with Quick App technology exceeded 1.2 billion, with over 500 million monthly active devices[34]. - The company launched a customized smart vehicle product, Q-CAR, based on Quick App technology[34]. - The company has launched 4 vehicle models under the Quick App Alliance, with 8 car-terminal manufacturers and over 50 beta developers involved[34]. - New product launches are expected to contribute an additional 300 million RMB in revenue over the next fiscal year[140]. - Market expansion plans include entering three new international markets by the end of the year, targeting a 10% increase in overall market share[142]. Shareholder Returns - The Board did not recommend the payment of a final dividend for the year ended December 31, 2021, similar to 2020[121]. - The board of directors has approved a dividend payout of 0.5 RMB per share, reflecting a commitment to returning value to shareholders[146]. - The company reported no final dividend for the year ended December 31, 2021, compared to nil in 2020[169]. Risks and Challenges - The COVID-19 pandemic has impacted the Group's business operations and financial results, with ongoing uncertainty regarding its effects[184]. - The Group faces risks including the need to enhance product functionality and maintain relationships with local channel partners[182]. - The Group's future outlook includes proactive management to ensure long-term business stability amid ongoing challenges[184]. IPO and Fund Utilization - The Group raised total net proceeds of approximately HK$194.7 million (equivalent to approximately RMB171.2 million) from its IPO on December 21, 2018[191]. - As of December 31, 2021, the Group utilized HK$184.4 million (approximately RMB162.1 million) of the IPO proceeds, leaving a remaining balance of HK$10.3 million (approximately RMB9.1 million)[193]. - The Group allocated HK$58.4 million (approximately RMB51.4 million) for strengthening research and development capabilities, with HK$11.1 million (approximately RMB10.3 million) utilized during the reporting period[193].

Financial Performance - Total revenue for the first half of 2021 amounted to RMB 1,015.2 million, representing an increase of 4.3% from RMB 973.2 million for the corresponding period in 2020[12] - Gross profit increased by 12.6% on a period-on-period basis to RMB 141.7 million[12] - Operating profit increased by 2.0% on a period-on-period basis to RMB 76.6 million[12] - Profit after tax increased by 4.4% on a period-on-period basis to RMB 56.6 million[12] - Adjusted EBITDA for the period was RMB 87,135, a decrease of 6.7% from RMB 93,426 in the same period of 2020[33] - Adjusted net profit was RMB 63,299, down 1.9% from RMB 64,529 in the first half of 2020[33] - Revenue for the six months ended June 30, 2021, was RMB 1,015,151, an increase of 4.3% from RMB 973,164 in the same period of 2020[33] - Mobile advertising revenue increased by 3.2% to RMB 962.7 million, driven by an increase in the number of mobile games advertised[37] - Revenue from online-video distribution services rose by 55.0% to RMB 46.5 million, compared to RMB 30.0 million in the first half of 2020[50] - Game co-publishing service revenue decreased by 42.1% to RMB 5.9 million, down from RMB 10.2 million in the same period last year[52] Revenue Breakdown - Revenues from mobile advertising amounted to RMB 962.7 million, representing a period-on-period increase of 3.2%[13] - Revenues from online-video distribution and game co-publishing amounted to RMB 46.5 million and RMB 5.9 million, respectively[13] - In the first half of 2021, mobile advertising revenue reached RMB 962.7 million, a year-on-year increase of 3.2%[16] - Revenue from online video distribution and game joint operations in the same period was RMB 46.5 million and RMB 5.9 million, respectively[16] Investments and Partnerships - The company raised approximately HK$ 189 million through the placing of new shares to further develop its business ecosystem[11] - The company entered a business partnership with Xiaomi in January 2021, achieving excellent distribution performance in the first month through the DAPG platform[17] - A strategic cooperation agreement was signed with East West Bank in August 2021 to support business expansion and overseas development[25] Research and Development - Continuous investments in DAPG R&D have prepared the company for diversified collaborations, optimizing mobile application placements across various industries[19] - The Quick App technology has expanded its support to multiple devices, including mobile phones, TVs, and smart vehicles, enhancing its capabilities for the Internet of Things[20] - The company aims to deepen the diversified Android ecosystem in the second half of 2021 to ensure stable business development[25] - The company has strengthened its research and development capabilities, achieving a utilization rate of 58.4% in 2021, compared to 51.4% in 2020[178] Financial Position - Cash and bank balances increased by 46.9% from RMB 240.4 million as of December 31, 2020, to RMB 353.1 million as of June 30, 2021[100] - Bank borrowings decreased by 20.5% from RMB 195.0 million as of December 31, 2020, to RMB 155.0 million as of June 30, 2021[100] - Current assets increased by 10.6% from RMB 1,329.8 million as of December 31, 2020, to RMB 1,471.2 million as of June 30, 2021[100] - Total equity increased by 18.9% from RMB 1,156.8 million as of December 31, 2020, to RMB 1,375.5 million as of June 30, 2021[100] - The current ratio improved from 3.2 as of December 31, 2020, to 4.5 as of June 30, 2021, reflecting increased cash and reduced bank borrowings[118][124] - The gearing ratio decreased from 26.4% as of December 31, 2020, to 19.3% as of June 30, 2021, indicating a reduction in total liabilities[118][124] Shareholder Information - As of June 30, 2021, Mr. Gao Dinan and Mr. Zheng Wei each held a long position of 488,248,800 shares, representing approximately 32.86% of the total shares[133] - Ms. Zhou Yan held a long position of 5,000,000 shares, representing approximately 0.34% of the total shares[133] - Mr. Nie Xin held a long position of 1,587,000 shares, representing approximately 0.11% of the total shares[133] - The total number of shares in issue as of June 30, 2021, was 1,485,663,350[134] - The company granted RSUs representing 62,499,240 shares to 71 grantees under the 2016 Share Incentive Scheme as of June 30, 2021[1] Corporate Governance - The Company has complied with all applicable code provisions of the CG Code, except for the separation of the roles of Chairman and CEO, which are held by Mr. GAO Dinan[194] - The Board believes that having the same individual serve as both Chairman and CEO ensures consistent leadership and effective strategic planning[194] - The Company will continue to review its corporate governance practices to ensure compliance with the CG Code[195] - The Group's employees with access to inside information are subject to the Model Code for securities transactions, with no incidents of non-compliance reported[200]

Financial Performance - Total revenue for the first half of 2020 amounted to RMB973.2 million, representing a decrease of 18.7% from RMB1,197.6 million for the same period in 2019[18]. - Gross profit decreased by 26.4% on a period-on-period basis to RMB125.9 million[18]. - Operating profit decreased by 20.4% on a period-on-period basis to RMB75.1 million[18]. - Profit after tax decreased by 27.9% on a period-on-period basis to RMB54.2 million[18]. - Revenues from mobile advertising amounted to RMB932.9 million, representing a period-on-period decrease of 18.2%[19]. - Revenues from online-video distribution amounted to RMB30.0 million[19]. - Revenues from game co-publishing amounted to RMB10.2 million[19]. - Mobile advertising revenue for the first half of 2020 was RMB932.9 million, down 18.2% year-on-year[22]. - Revenue from online-video distribution services was RMB30.0 million, down 15.0% from RMB35.3 million in the first half of 2019[55]. - Game co-publishing revenue decreased from RMB21.3 million in the first half of 2019 to RMB10.2 million in the first half of 2020[57]. - Adjusted EBITDA for the first half of 2020 was RMB93.4 million, representing a decrease of 24.7% from RMB124.1 million in the same period of 2019[38]. - Profit for the period was RMB54.2 million, down 27.9% from RMB75.2 million in the first half of 2019[38]. - Adjusted net profit for the six months ended 30 June 2020 was RMB64.5 million, compared to RMB96.6 million for the same period in 2019, a decline of approximately 33.2%[89]. Cost and Expenses - Research and development costs decreased by 6.1% to RMB23.7 million from RMB25.2 million in the previous year[38]. - Selling and distribution expenses decreased by 22.2% to RMB7.6 million from RMB9.8 million in the same period of 2019[38]. - Administrative expenses decreased by 17.5% from RMB25.0 million for the six months ended June 30, 2019, to RMB20.7 million for the six months ended June 30, 2020[68]. - Finance costs decreased from RMB6.9 million for the six months ended 30 June 2019 to RMB5.4 million for the six months ended 30 June 2020, a reduction of approximately 21.7%[73]. - Income tax expense increased by 23.4% from RMB12.3 million for the six months ended 30 June 2019 to RMB15.1 million for the six months ended 30 June 2020[74]. Assets and Liabilities - Cash and bank balances decreased by 13.0% from RMB380.9 million as at 31 December 2019 to RMB331.6 million as at 30 June 2020[93]. - Bank borrowings decreased by 5.6% from RMB236.0 million as at 31 December 2019 to RMB222.7 million as at 30 June 2020[93]. - Current liabilities decreased by 23.9% from RMB547.1 million as at 31 December 2019 to RMB416.6 million as at 30 June 2020[93]. - Total equity increased by 10.7% from RMB1,035.5 million as at 31 December 2019 to RMB1,146.2 million as at 30 June 2020[93]. - Net current assets increased by 8.1% from RMB822.3 million as at 31 December 2019 to RMB889.1 million as at 30 June 2020[93]. - The current ratio increased from 2.5 as of December 31, 2019, to 3.1 as of June 30, 2020, primarily due to the decrease in accounts payable and contract liabilities[109]. - The gearing ratio decreased from 34.8% as of December 31, 2019, to 26.8% as of June 30, 2020, mainly due to the decrease of total liabilities[110]. Shareholding and Incentive Schemes - As of June 30, 2020, Mr. Gao Dinan held a long position of 488,248,800 shares, representing 36.99% of the Company[126]. - Mr. Zheng Wei also held a long position of 488,248,800 shares, equivalent to 36.99% of the Company[126]. - Ms. Zhou Yan was a beneficial owner of 5,000,000 shares, which is 0.38% of the Company[126]. - The total number of shares issued as of June 30, 2020, was 1,320,018,350[126]. - The company granted RSUs representing 62,499,240 shares to 71 grantees under the 2016 Share Incentive Scheme as of June 30, 2020[152]. - The purpose of the 2016 Share Incentive Scheme is to attract, motivate, and retain skilled personnel by providing equity ownership opportunities[143]. - The company granted 21,013,000 RSUs under the 2019 Share Incentive Scheme to 29 grantees, none of whom are directors or senior management[163]. - The purpose of the 2019 Share Incentive Scheme is to attract, motivate, and retain skilled personnel by providing equity ownership opportunities[161]. Corporate Governance and Compliance - The company has complied with all applicable code provisions set out in the Corporate Governance Code, except for the separation of the roles of chairman and CEO[184]. - The company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[186]. - The company has established a risk management and internal control system, with the Audit Committee reviewing its effectiveness annually and management providing necessary information to the board[194]. - There were no incidents of non-compliance with the Model Code for securities transactions by directors or employees during the six months ended June 30, 2020[192]. - The company has implemented anti-bribery and anti-corruption measures, including annual fraud and bribery risk assessments conducted by management[200]. Strategic Initiatives and Future Outlook - The company launched its first SaaS product "Qingzhou" in June 2020, aimed at Quick Apps service for merchants and enterprises[25]. - The DAPG platform supports Quick Apps, providing functions like fast uploading and data support, crucial for the healthy development of the Quick Apps ecosystem[24]. - The company is exploring monetization capabilities of Quick Apps and the Internet of Things, while strengthening its 5G strategic layout[32]. - A new mobile game developed in-house was successfully launched in the overseas market in June 2020, receiving positive feedback from users[30]. - The management remains optimistic yet cautious about business development in the second half of 2020, focusing on online business opportunities[34].

Strategic Investments and Partnerships - The Group strategically invested in Beijing Youbei Digital Technology Co., Ltd. to further expand its business into the financial technology sector[15]. - The Group sponsored the TEF2019 Quick App Developer Conference in March 2019[10]. - The Group held a "Business School of Game" event with Facebook in June 2019[12]. - The Group organized the 2019 MHA Carnival Night during the China Digital Entertainment Expo & Conference in August 2019[14]. - A subsidiary of the Group became the Chairman of Shenzhen Branch of Taobao Alliance in October 2019[17]. - The Group, as a lead sponsor, organized the 5th Black Stone Awards Ceremony in Shenzhen in December 2019[19]. Financial Performance - Total revenue increased by 55.0% from RMB1,546.3 million in 2018 to RMB2,396.2 million in 2019[26]. - Gross profit rose by 55.8% year-on-year to RMB338.2 million in 2019[26]. - Operating profit increased by 72.5% year-on-year to RMB175.8 million in 2019[26]. - The company recorded a profit after tax of RMB105.7 million for the first time, marking a turnaround from loss to profit[26]. - Adjusted net profit increased by 25.8% from RMB127.0 million in 2018 to RMB159.7 million in 2019[61]. - Adjusted EBITDA for 2019 was RMB246.4 million, a significant increase from RMB166.6 million in 2018[48]. - The company recorded a profit of RMB105.7 million in 2019, a turnaround from a loss of RMB421.5 million in 2018, driven by the expansion of its mobile app and game distribution business[94]. Revenue Breakdown - Revenue from mobile advertising reached RMB2,276.4 million in 2019, representing a year-on-year increase of 57.7%[27]. - Revenue from online-video distribution services was RMB101.6 million in 2019, up from RMB67.4 million in 2018[65]. - Revenue from game co-publishing services reached RMB18.2 million in 2019, compared to RMB10.5 million in 2018[65]. - Revenue from mobile game distribution rose significantly by 70.1% from RMB1,005.6 million in 2018 to RMB1,710.8 million in 2019[76]. - Revenue from mobile app distribution increased by 29.2% from RMB437.7 million in 2018 to RMB565.6 million in 2019[76]. - Mobile advertising accounted for 95.0% of total revenues in 2019, compared to 93.3% in 2018[70]. User Growth and Market Expansion - Monthly active Quick App devices exceeded 300 million units by December 2019, nearly doubling from December 2018[33]. - User data showed a growth of 1 million active users, bringing the total to 5 million, which is a 25% year-over-year increase[150]. - Future plans include deepening cooperation with Android-based ecosystem participants and expanding the global user base in overseas markets[35]. - Market expansion plans include entering two new international markets by Q3 2020, which is expected to increase the user base by 15%[150]. Cost and Expense Management - Cost of sales increased by 54.8% from RMB1,329.2 million in 2018 to RMB2,058.0 million in 2019, driven by higher distribution fees[85]. - Selling and distribution expenses rose by 89.2% from RMB16.7 million in 2018 to RMB31.6 million in 2019, primarily due to increased marketing and advertising expenses[88]. - Research and development expenses increased by 72.6% from RMB26.3 million in 2018 to RMB45.4 million in 2019, driven by a rise in R&D staff and system development costs[89]. - Administrative expenses decreased by 33.3% from RMB74.6 million in 2018 to RMB49.8 million in 2019, mainly due to the absence of listing-related expenses[90]. Financial Position and Capital Management - Total assets increased from RMB1,312.9 million in 2018 to RMB1,589.1 million in 2019[55]. - Total equity reached RMB1,035.5 million, an 18.3% increase from RMB875.5 million in 2018, primarily due to net profit generated during 2019[118][120]. - The current ratio remained stable at 2.5 for both 2018 and 2019, indicating consistent liquidity management[128][131]. - Bank borrowings rose significantly to RMB236.0 million as of December 31, 2019, a 61.6% increase from RMB146.0 million in 2018, mainly for business expansion[109][111]. Strategic Outlook and Future Plans - The company provided guidance for the next fiscal year, expecting revenue to reach between $180 million and $200 million, indicating a growth rate of 20% to 33%[150]. - New product launches are anticipated to contribute an additional $30 million in revenue, with a focus on enhancing user engagement and retention[150]. - The company is investing $10 million in research and development for new technologies aimed at improving service delivery and operational efficiency[150]. - The company is considering strategic acquisitions to enhance its product offerings and market presence, with a budget of $50 million allocated for potential deals[150]. Dividend and Shareholder Information - The Board did not recommend the payment of a final dividend for the year ended December 31, 2019[139]. - The Company does not recommend a final dividend for the year ended December 31, 2019[187].

Interim Report 中期報告 WANKA ONLINE INC. 萬咖壹聯有限公司 * WANKA ONLINE INC. 萬 咖 壹 聯 有 限 公 司 * (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） Stock Code 股份代號 : 1762 2019 Interim Report 中期報告 2019 ✽ For identification purposes only 僅供識別 Contents 目錄 Corporate Information 公司資料 2 Chairman's Statement 主席報告書 5 Management Discussion and Analysis 管理層討論及分析 8 Other Information 其他資料 22 Interim Condensed Consolidated Statement of Profit or Loss 中期簡明綜合損益表 34 Interim Condensed Consolidated Statement of ...

WANKA ONLINE INC. 萬 咖 壹 聯 有 限 公 司 (Incorporated in the Cayman Islands with Limited Liability) ( 於開曼群島註冊成立之有限公司） Stock Code 股份代號 : 1762 2018 Annu a l Repo r t 年 報 WANKAONLINE ✽ For identification purposes only 僅供識別 Contents 目錄 Corporate Information 公司資料 2 Annual Memorabilia 2018 二零一八年年度大事記 5 Chairman's Statement 主席報告書 7 Honours and Awards 榮譽及獎勵 11 Financial Highlights 財務摘要 12 Management Discussion and Analysis 管理層討論及分析 14 Directors and Senior Management 董事及高級管理層 28 Report of the Directors 董事會報告 35 Corporate ...