Financial Performance - For the nine months ended September 30, 2019, the company's revenue was approximately RMB 168.5 million, a decrease of about 58.2% compared to RMB 403.0 million for the same period in 2018[6]. - The company's loss for the nine months ended September 30, 2019, was approximately RMB 10.4 million, a reduction in loss of 84.9% compared to RMB 69.1 million for the same period in 2018[6]. - The adjusted net loss for the nine months ended September 30, 2019, was approximately RMB 1.6 million, a decrease in loss of 97.0% compared to RMB 55.2 million for the same period in 2018[6]. - The gross profit for the nine months ended September 30, 2019, was RMB 60.5 million, down from RMB 145.7 million in the same period of 2018, reflecting a significant decline in revenue[7]. - The company reported a basic and diluted loss per share of RMB 0.03 for the nine months ended September 30, 2019, compared to a loss of RMB 0.21 for the same period in 2018[9]. - Operating loss for the nine months ended September 30, 2019, was RMB 17.3 million, compared to an operating loss of RMB 50.3 million for the same period in 2018[7]. - The total comprehensive loss for the nine months ended September 30, 2019, was RMB 10.4 million, a significant improvement from a loss of RMB 69.1 million in the same period of 2018[8]. - The company reported a comprehensive loss of RMB (10,433,000) for the nine months ended September 30, 2019[11]. - The company's total liabilities were RMB 1,593,727,000 as of September 30, 2019[11]. - The company's total assets were RMB 2,162,182,000 as of September 30, 2019[11]. Revenue Breakdown - For the three months ended September 30, 2019, the gaming business generated revenue of RMB 40,085 thousand, a decrease of 46.5% compared to RMB 74,839 thousand in the same period of 2018[27]. - The film and television business reported revenue of RMB 22,443 thousand for the three months ended September 30, 2019, down 39.3% from RMB 37,062 thousand in the same period of 2018[28]. - The total revenue for the group for the three months ended September 30, 2019, was RMB 62,528 thousand, a decrease of 44.1% compared to RMB 111,901 thousand in the same period of 2018[31]. - Game business revenue contributed RMB 131.2 million, down approximately 53.3% or RMB 149.9 million year-on-year, primarily due to the decline in existing game revenues[57]. - The film and television business generated approximately RMB 37.3 million, a decrease of about 69.4% or RMB 84.6 million compared to the same period last year, attributed to cyclical impacts and differences in revenue recognition[57]. Expenses and Cost Management - The company's cost for the nine months ended September 30, 2019, was approximately RMB 108.1 million, a reduction of about 58.0% from RMB 257.3 million in the previous year[58]. - Sales and marketing expenses for the nine months ended September 30, 2019, were approximately RMB 24.4 million, a decrease of about 71.5% compared to RMB 85.6 million for the same period in 2018[61]. - Administrative expenses for the nine months ended September 30, 2019, were approximately RMB 33.9 million, down 40.9% from RMB 57.4 million for the same period in 2018[62]. - Research and development expenses for the nine months ended September 30, 2019, were approximately RMB 21.9 million, a decrease of about 61.6% compared to RMB 57.0 million for the same period in 2018[63]. - The total employee compensation for the nine months ended September 30, 2019, was approximately RMB 57.0 million, compared to RMB 126.9 million for the same period in 2018[74]. Shareholder Information - As of September 30, 2019, the company had a total of 368,730,964 shares issued[89]. - Major shareholder Zhu Li holds 79,216,540 shares, representing 21.48% of the total shares[97]. - Wangfeng Management Limited, beneficially owned by Mr. Wang Jing, holds 66,576,160 shares, accounting for 18.06%[97]. - Starwish Global Limited holds 52,318,760 shares, representing 14.19% of the total shares[97]. - Fosun China Momentum Fund, L.P. holds 52,318,760 shares, also accounting for 14.19%[97]. - Mr. Wang Jing holds 5,500,000 shares, including 2,900,000 shares from stock options and 2,600,000 shares from restricted stock units[91]. - Mr. Chen Hao owns 3,575,841 shares, comprising 2,100,000 shares from stock options and 1,475,841 shares from restricted stock units[92]. - The company has a significant concentration of ownership, with major shareholders controlling over 70% of the shares[105]. Future Plans and Strategies - The company plans to continue its expansion in the gaming and film industries in China and other regions[18]. - The company plans to launch two mobile games in Japan, including "Fantasy & Puzzle" and "Ys VIII Mobile," with the latter expected to be released in 2020[16]. - The company plans to release the game "Dream of Jianghu" in South Korea, which underwent closed testing from September 17 to September 25, 2019[42]. - The company aims to enhance game development and publishing quality to launch more competitive games in the future[57]. - The company plans to fully utilize the reserved funds for overseas expansion by the end of 2019[84]. Corporate Governance - The board of directors did not recommend any dividend payment for the nine months ended September 30, 2019[6]. - The audit committee has reviewed the unaudited consolidated financial results for the nine months ended September 30, 2019[77]. - The company has complied with the principles and code provisions of the Corporate Governance Code as set out in the GEM Listing Rules during the nine months ended September 30, 2019[122]. - The Audit Committee was established on April 24, 2014, and is responsible for reviewing financial information, internal control procedures, and risk management systems[123].

Financial Performance - For the six months ended June 30, 2019, the company's revenue was approximately RMB 106.0 million, a decrease of about 63.6% compared to RMB 291.1 million for the same period in 2018[10]. - The net profit for the three months ended June 30, 2019, was approximately RMB 10.3 million, compared to a net loss of RMB 14.2 million for the same period in 2018, marking a turnaround from a net loss of RMB 15.1 million in the first quarter of 2019[11]. - The adjusted net profit for the three months ended June 30, 2019, was approximately RMB 13.5 million, while the adjusted net loss for the same period in 2018 was approximately RMB 4.2 million[10]. - The adjusted net profit for the six months ended June 30, 2019, was approximately RMB 1.1 million, compared to an adjusted net loss of RMB 54.1 million for the same period in 2018[10]. - The net loss for the six months ended June 30, 2019, was approximately RMB 4.8 million, a decrease of about 93.0% from a net loss of approximately RMB 68.8 million in the same period of 2018[40]. - The total comprehensive loss attributable to owners of the company was RMB 67,529 thousand for the six months ended June 30, 2019, compared to a loss of RMB 63,450 thousand in 2018[111]. Revenue Breakdown - The gaming division reported revenue of RMB 91.14 million for the first half of 2019, a decrease of 55.9% from RMB 206.30 million in the same period of 2018[24]. - The film and television division generated RMB 14.85 million in revenue, down 82.5% from RMB 84.81 million year-on-year[25]. - Revenue from the gaming business decreased by approximately 55.8% or RMB 115.2 million compared to the same period in 2018, attributed to fewer new game releases and the decline of existing games[28]. - The total revenue for the group for the six months ended June 30, 2019, was RMB 105,994 thousand, down from RMB 291,112 thousand in the same period of 2018, representing a decrease of approximately 64%[157][158]. Cost and Expenses - The group's cost for the six months ended June 30, 2019, was approximately RMB 60.3 million, a decrease of about 66.3% from approximately RMB 178.7 million for the same period in 2018[30]. - Gross profit for the six months ended June 30, 2019, was approximately RMB 45.7 million, down about 59.3% from approximately RMB 112.4 million in the same period of 2018, with a gross margin of approximately 43.1%, up 4.5 percentage points[32]. - Selling and marketing expenses decreased by approximately 76.2% to about RMB 17.6 million for the six months ended June 30, 2019, compared to approximately RMB 74.1 million in the same period of 2018[33]. - Administrative expenses were approximately RMB 22.8 million, a decrease of 47.2% from approximately RMB 43.2 million for the same period in 2018, mainly due to staff reductions[34]. - R&D expenses decreased by approximately 64.0% to about RMB 17.9 million for the six months ended June 30, 2019, compared to approximately RMB 49.7 million in the same period of 2018[35]. Shareholder Information - As of June 30, 2019, the total number of issued shares was 368,730,964[63]. - Mr. Wang Feng holds 66,576,160 shares, representing approximately 21.48% of the total shares[61]. - Major shareholders include Zhu Li with 79,216,540 shares (21.48%) and Wangfeng Management Limited with 66,576,160 shares (18.06%)[70]. - Starwish Global Limited holds 52,318,760 shares, representing approximately 14.19%[70]. - The company has a significant interest in 蓝港在线 (Blueport Online) with Mr. Wang Feng holding 75.45%[68]. Cash Flow and Assets - As of June 30, 2019, the company had cash and cash equivalents of approximately RMB 195.2 million, an increase from RMB 176.6 million as of December 31, 2018[45]. - The company reported a net cash outflow from operating activities of RMB 27,777 thousand for the six months ended June 30, 2019, compared to RMB 56,894 thousand for the same period in 2018[115]. - The total assets as of June 30, 2019, were RMB 850,636 thousand, a decrease of 5.0% from RMB 895,703 thousand as of December 31, 2018[103]. - Total liabilities as of June 30, 2019, were RMB 305,523 thousand, down 12.1% from RMB 347,376 thousand as of December 31, 2018[103]. Strategic Initiatives - The company plans to release two mobile games in Japan, including "Fantasy & Puzzle" and the mobile version of "Ys VIII: Lacrimosa of DANA," with the latter expected to launch in 2020[13]. - The company aims to expand its presence in the Japanese market and has established a dedicated team with experience in top 30 Japanese game products[13]. - The company will continue to focus on producing high-quality content, targeting the post-95 and post-00 generations with various genres of film and television[15]. - The company has a robust pipeline of IPs, including major works like "Ancient Music" and "Cloud Sea Treasure Mountain," which are expected to enhance its content offerings[17]. Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules during the reporting period[98]. - The audit committee was established on April 24, 2014, and is responsible for reviewing financial information and internal control procedures[99]. - All directors confirmed compliance with the required trading standards during the six months ending June 30, 2019[101].

Financial Performance - For the three months ended March 31, 2019, the company's revenue was approximately RMB 52.9 million, a decrease of about 55.0% compared to RMB 117.5 million for the same period in 2018[6]. - The net loss for the period was approximately RMB 15.1 million, significantly improved from a net loss of RMB 54.6 million in the same period of 2018[7]. - The adjusted net loss for the period was approximately RMB 12.4 million, compared to an adjusted net loss of RMB 49.9 million in the same period of 2018[8]. - The gross profit for the three months ended March 31, 2019, was RMB 22.7 million, down from RMB 41.8 million in the same period of 2018[14]. - The operating loss for the period was RMB 14.8 million, a significant improvement from an operating loss of RMB 50.5 million in the same period of 2018[14]. - The total comprehensive loss for the period was RMB 25.4 million, compared to RMB 75.5 million in the same period of 2018[14]. - Basic and diluted loss per share for the period was RMB 0.04, compared to RMB 0.15 for the same period in 2018[17]. - The company's administrative expenses were RMB 10.4 million, down from RMB 20.5 million in the same period of 2018[14]. - Research and development expenses for the period were RMB 11.4 million, a decrease from RMB 30.7 million in the same period of 2018[14]. - The total comprehensive loss for the period was RMB 75.45 million, reflecting challenges in the market[38]. Revenue Breakdown - Game business revenue from virtual goods sales was RMB 38,201,000, down 66% from RMB 112,117,000 year-over-year[55]. - Revenue from China was RMB 25,697,000, a decline of 57% from RMB 58,992,000 in the same quarter of 2018[55]. - Game business revenue decreased by approximately 56.3% to RMB 50.7 million, primarily due to fewer new game releases and a decline in existing games[86]. - The film and television business generated revenue of approximately RMB 2.2 million, an increase of about 48.1% compared to RMB 1.5 million in the same period last year[87]. Market Strategy and Expansion - The gaming segment, which operates in China and other regions, is a key focus for the company, contributing significantly to overall performance[52]. - The company aims to expand its market presence in both gaming and film sectors, focusing on strategic partnerships and new product development[51]. - The company is expanding into the Japanese market with two new products targeting local player preferences, set for testing in Q4 2019 and 2020[71]. - The company is collaborating with Taiwanese and Shanghai developers to create a mobile game based on the classic RPG "Xuan Yuan Sword" series[72]. - The company plans to enhance its IP development and operations, aiming to produce two to three high-quality film and television works annually[76]. - The company is developing new original web series and adapting existing works to strengthen its content portfolio[76]. Financial Position and Resources - The company maintained a strong cash position with cash and cash equivalents amounting to approximately RMB 262.8 million as of March 31, 2019, compared to RMB 176.6 million as of December 31, 2018[108]. - The company had no short-term bank deposits as of March 31, 2019, down from RMB 102.9 million as of December 31, 2018[108]. - The debt ratio as of March 31, 2019, was approximately 40.5%, an increase from 38.8% as of December 31, 2018[112]. - The company had bank loans amounting to approximately RMB 199.1 million as of March 31, 2019, unchanged from December 31, 2018[112]. - The company plans to use internal resources and sustainable growth for funding its expansion and business operations[106]. Shareholder Information - Wangfeng Management Limited holds 66,576,160 shares, representing an 18.06% stake in the company[126]. - Zhu Li, spouse of Wang Feng, is deemed to have an interest in all shares held by Wang Feng, totaling 79,216,540 shares, which is 21.48% of the company[126]. - The total number of shares held by major shareholders indicates a concentrated ownership structure, with the top two shareholders holding over 39% combined[126]. - The company has a significant shareholder structure, with multiple entities holding 14.19% each, including China Momentum Fund, L.P.[128]. Corporate Governance - The audit committee reviewed the unaudited financial statements for the three months ending March 31, 2019, confirming compliance with applicable accounting standards[163]. - The company has adhered to the corporate governance code as per GEM listing rules during the reporting period[165]. - All directors confirmed compliance with the trading standards for securities as of March 31, 2019[166].

LINEKONG 年 度 報 告 藍港互動集團有限公司 Linekong Interactive Group Co.,Ltd. ( 於開曼群島註冊成立的有限公司 ) 股份代號 : 8267 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有較高投資風險。有意投資的人士應了解 投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場波動風險，同時無法保證在 GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本報告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關藍港互動集團有限公司（「藍港互動」、「本公司」或 「我們」）的資料；本公司的董事（「董事」）願就本報告的資料共同及個別地承擔全部責任。各董事在作出一切合理查 ...