Financial Performance - Archosaur Games Inc. reported a significant increase in revenue, achieving a total of $150 million for the fiscal year 2021, representing a 25% year-over-year growth[1]. - The company’s net profit for 2021 was $45 million, a 35% increase from the previous year, showcasing improved profitability[1]. - The gross margin for the year was reported at 60%, reflecting efficient cost management and strong sales performance[1]. - The company reported a revenue of RMB 1.5 billion for the fiscal year ending December 31, 2021, representing a year-over-year increase of 20%[26]. - The earnings guidance for 2022 is set at a revenue growth of 25%, projecting total revenue to reach RMB 1.875 billion[26]. - Revenue for the year ended December 31, 2021, was RMB 920.8 million, a decrease of 23.8% compared to RMB 1,208.8 million in 2020[62]. - Adjusted net loss for the year was RMB 237.7 million, compared to a profit of RMB 218.8 million in 2020, representing a 208.6% change[62]. - The company reported an operating loss of RMB 289.4 million in 2021, compared to an operating profit of RMB 83.1 million in 2020[40]. User Engagement and Growth - The company’s active user base reached 10 million, with a 15% increase compared to the previous year, indicating strong user engagement and retention[1]. - User engagement metrics showed a 15% increase in active users, reaching 10 million by the end of 2021[26]. - The total number of global cumulative users for the 11 operating games exceeded 130 million as of December 31, 2021[66]. - The game "Dragon Tribe Fantasy" generated cumulative revenue exceeding RMB 3.8 billion, with nearly 40 million registered users[66]. - The game "Under the Hongtu" achieved cumulative revenue of over RMB 1 billion and had over 6.2 million registered users by the end of 2021[67]. Research and Development - The company is investing heavily in R&D, allocating approximately $30 million, which is 20% of its total revenue, to develop new technologies and enhance existing game features[1]. - The company has allocated RMB 200 million for research and development of new technologies, focusing on enhancing gaming experiences with Unreal Engine 5[26]. - Research and development expenses increased to RMB 705.6 million in 2021, up 30.6% from RMB 540.4 million in 2020[40]. - The company is leveraging advanced technology, having successfully applied the latest version of Unreal Engine 4 to its current development products and is researching Unreal Engine 5 for future game development[57]. Market Expansion and Strategy - Archosaur Games Inc. provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% to $180 million, driven by new game releases and market expansion strategies[1]. - Archosaur Games Inc. plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[1]. - Market expansion efforts include entering Southeast Asian markets, targeting a 10% market share within two years[26]. - The company is exploring potential acquisitions to enhance its portfolio, with a budget of $50 million earmarked for strategic investments in complementary gaming companies[1]. - The company is exploring strategic acquisitions to enhance its portfolio, with a budget of up to RMB 500 million for potential targets[26]. Product Development and Launches - Archosaur Games Inc. launched two new games in Q4 2021, which contributed to a 30% increase in user acquisition during the launch period[1]. - The company plans to launch three new game titles in 2022, aiming for a revenue contribution of RMB 300 million from these titles within the first year[26]. - The anticipated release of the game "Noah's Heart" was delayed to 2022 to enhance game quality and player experience[47]. - Upcoming titles such as "Noah's Heart," "Avatar: Reckoning," and "In the Name of Shining" are expected to perform well in 2022[61]. - The company plans to launch 11 new games across various genres from 2022 to 2024[70]. Employee and Operational Insights - The company has expanded its workforce, adding 158 R&D personnel and 86 publishing and operations staff, increasing total employees from approximately 1,200 to about 1,500[55]. - Employee compensation and benefits costs amounted to RMB 644.8 million for the year ended December 31, 2021, compared to RMB 483.7 million for the previous year[124]. - The company is committed to providing competitive and fair compensation and benefits to employees, with regular performance evaluations conducted quarterly[124]. - The company has implemented measures to ensure employee safety during the COVID-19 pandemic, which has not significantly impacted its business operations or financial performance[88]. Sustainability and Corporate Responsibility - Archosaur Games Inc. emphasized its commitment to sustainability, aiming to reduce operational carbon emissions by 25% over the next three years[1]. - The company has implemented environmental policies and measures to reduce energy consumption and waste[142]. Shareholder and Financial Management - The board has approved a share buyback program of up to RMB 100 million to enhance shareholder value[26]. - The company repurchased a total of 2,871,000 shares at a total cost of HKD 24,637,550 during the year ended December 31, 2021[146]. - The company does not recommend the payment of any final dividend for the year ended December 31, 2021[137]. - The company plans to utilize the remaining net proceeds based on future market conditions, with expected timelines for various allocations[130].

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2021, representing a 25% increase compared to the same period last year[3]. - Revenue for the six months ended June 30, 2021, was RMB 553.8 million, a decrease of 8.0% from RMB 601.9 million in 2020[23]. - Gross profit for the same period was RMB 441.1 million, down 2.7% from RMB 453.4 million[23]. - The company reported a net loss of RMB 85.8 million, a significant decrease of 89.1% from RMB 787.2 million in 2020[23]. - The adjusted net loss was RMB 47.1 million, compared to a profit of RMB 151.6 million in the same period last year, reflecting a 131.1% decline[23]. - The total comprehensive loss for the period was RMB 112,680 thousand, compared to RMB 787,462 thousand in the same period last year, reflecting a reduction in overall losses[108]. - The net loss attributable to the owners of the company was RMB 85,835 thousand, compared to a loss of RMB 787,199 thousand in the same period last year, showing a significant improvement[107]. - Basic loss per share improved to RMB (0.11) from RMB (2.46) year-over-year[177]. User Engagement and Market Expansion - User engagement metrics showed a 30% increase in daily active users (DAUs) year-over-year, reaching 1.2 million[3]. - The total number of registered users reached 10 million, reflecting a 15% increase from the previous year[3]. - Market expansion efforts include targeting Southeast Asia, with plans to localize content for regional audiences[3]. - The company plans to launch two new games in Q4 2021, aiming to capture a larger share of the mobile gaming market[3]. - The company plans to launch multiple MMORPG, SLG, and other types of mobile games globally in the second half of 2021 and throughout 2022[29]. Research and Development - The company is investing RMB 100 million in research and development for new gaming technologies and features[3]. - Research and development expenses increased by 48.2% to RMB 337.3 million from RMB 227.6 million[23]. - The company is focused on developing next-generation premium mobile games and has established a research and development layout with studios in Beijing, Shanghai, Chengdu, and Changchun[24]. - The Shanghai studio has begun to attract high-end R&D and publishing talent, with several core personnel already on board[24]. Financial Position and Cash Flow - Cash used in operating activities was RMB 75.6 million, a decrease of 127.2% compared to cash generated of RMB 277.9 million in the same period of 2020[58]. - Cash used in investing activities increased to RMB 389.3 million, a rise of 3,091.0% from RMB 12.2 million in 2020, primarily due to investments in funds and upstream/downstream companies[59]. - Cash used in financing activities was RMB 20.4 million, down 91.7% from RMB 244.8 million in 2020, mainly due to dividend payments made in 2020[60]. - The company’s cash and cash equivalents decreased significantly due to substantial investments in financial products and property, plant, and equipment[120]. - The ending cash and cash equivalents as of June 30, 2021, were RMB 2,543,334 thousand, a decrease from RMB 3,055,711 thousand at the beginning of the period[123]. Strategic Partnerships and Acquisitions - A new partnership with Tencent is expected to enhance distribution channels and increase user acquisition[3]. - The company is exploring potential acquisitions to enhance its game portfolio and expand its market presence[3]. - The company plans to actively expand its self-developed and self-published business system in vertical fields based on accumulated overseas publishing experience[25]. Corporate Governance and Shareholder Information - The company has complied with all applicable code provisions of the corporate governance code, except for the separation of the roles of chairman and CEO[93]. - As of June 30, 2021, the major shareholder, Mr. Li Qing, holds 34.19% of the company's issued share capital, amounting to 278,799,802 shares[79]. - Tencent holds a 16.88% stake in the company, equivalent to 137,698,399 shares as of June 30, 2021[79]. - The company maintained sufficient public float during the six months ending June 30, 2021[96]. Future Outlook - Future guidance indicates expected revenue growth of 20% for the second half of 2021, driven by new product launches and marketing strategies[3]. - The company anticipates that the expansion into various mobile game genres will lead to a more stable and sustained contribution to revenue over time[34]. - The company expects to continue benefiting from tax incentives for high-tech enterprises, maintaining a reduced corporate income tax rate of 15%[173].

祖龙娱 ARCHOSAUR GA (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) Stock Code 股份代號 : 9990 ANNUAL REPORT 年報 祖龙娱乐有限公司 Archosaur Games Inc. THINNING ugus month minute manufacture . antinungan . · . i · . " . . . . and and the county of the county 0.000 . 0 . . . . . . . . . . . 1 . · . . . . . . . 目錄 頁次 釋義 02 公司資料 07 財務概要 09 主席致辭 11 財務表現摘要 15 管理層討論與分析 16 董事會報告 26 董事及高級管理層履歷詳情 49 企業管治報告 54 獨立核數師報告 65 綜合損益表 71 綜合全面收益表 72 綜合資產負債表 73 綜合權益變動表 75 綜合現金流量表 77 綜合財務報表附註 79 \\\\\\\\\\\ . Inte ...

Financial Performance - Archosaur Games reported a revenue of approximately $50 million for the first half of 2020, representing a year-over-year increase of 25%[1]. - The company achieved a net profit margin of 15%, with net profit reaching around $7.5 million during the same period[1]. - Revenue for the six months ended June 30 reached RMB 601.9 million, an increase of 89.6% compared to RMB 317.5 million in the same period last year[25]. - Gross profit for the same period was RMB 453.4 million, reflecting a 67.9% increase from RMB 270.1 million[25]. - Operating profit surged to RMB 69.8 million, a remarkable increase of 402.2% from RMB 13.9 million year-on-year[25]. - Adjusted net profit for the period was RMB 151.6 million, representing a staggering increase of 1,195.7% compared to RMB 11.7 million in the previous year[25]. - The company reported a net loss of RMB 787,199 thousand for the six months ended June 30, 2020, compared to a net loss of RMB 95,525 thousand in the same period of 2019[128]. - The basic and diluted loss per share for the period was RMB (2.46), compared to RMB (0.27) in the same period of the previous year[128]. - The company incurred a total comprehensive loss of RMB 787,462 thousand for the six months ended June 30, 2020[146]. User Engagement and Market Expansion - User engagement metrics showed a 30% increase in daily active users (DAUs), reaching 1.5 million users by the end of June 2020[1]. - Archosaur Games plans to launch two new MMORPG titles in the second half of 2020, aiming to capture a larger market share in the gaming industry[1]. - The company is expanding its market presence in Southeast Asia, targeting a 20% growth in user base in that region by the end of 2021[1]. - The company aims to expand its market presence in Europe, America, and Southeast Asia with new regional versions of existing games[28]. - Revenue from overseas markets reached RMB 406,568,000 for the six months ended June 30, 2020, compared to RMB 109,093,000 in 2019, indicating a significant growth in international sales[179]. Research and Development - Archosaur Games has allocated $10 million for research and development of new gaming technologies and features to enhance user experience[1]. - Research and development expenses rose to RMB 227.6 million, up 17.9% from RMB 193.0 million[25]. - The company plans to launch 8 new mobile games from 2020 to 2022, including titles like "Under the Hongtu" and "Dream New World" expected in Q4 2020[32]. - The company is focused on enhancing its engine technology and research capabilities[114]. Financial Management and Investments - The company generated 67.5% of its total revenue from overseas markets, reflecting a growth of 272.6% compared to the previous year[43]. - Cash generated from operating activities for the six months ended June 30, 2020, was RMB 277.9 million, a 152.2% increase from RMB 110.2 million in the same period of 2019[60]. - Cash used in investing activities for the six months ended June 30, 2020, was RMB 12.2 million, a decrease of 93.1% from RMB 176.9 million in the same period of 2019[61]. - The company reported a foreign exchange gain of RMB 4,369 thousand during the period[149]. - The company invested RMB 1,598,550 thousand in financial products measured at fair value through profit or loss during the reporting period[149]. Corporate Governance and Management - The company has established an audit committee to oversee financial reporting and governance practices[119]. - The CEO, Li Qing, is responsible for the overall management and strategic direction of the company[113]. - The company has a strong management team with extensive experience in finance and business development[116]. - The independent non-executive directors provide oversight and independent judgment to the board[110]. - The company has complied with all applicable corporate governance code provisions, except for the separation of roles between the chairman and CEO[97]. Share Capital and IPO - On July 15, 2020, the company successfully completed its IPO, issuing 187,400,000 shares at HKD 11.60 per share, increasing the group's net asset value[75]. - The overallotment option was fully exercised on August 11, 2020, resulting in an additional issuance of 28,110,000 shares at the same price of HKD 11.60 per share[78]. - As of the mid-term report date, the total issued share capital was 815,510,000 shares, with the overallotment shares representing a percentage of the total issued capital[82]. - Mr. Li Qing holds 278,329,802 shares, representing approximately 34.13% of the company's issued share capital[81]. - Perfect World Interactive and its related entities collectively hold 138,593,999 shares, accounting for approximately 16.99% of the issued share capital[81]. Taxation and Financial Strategy - The company expects to maintain a preferential corporate income tax rate of 15% due to its status as a high-tech enterprise[194]. - The company recorded a tax credit of RMB 6,676 thousand for the six months ended June 30, 2020, compared to a tax expense of RMB (4,798) thousand in the same period of 2019[191]. - The company has recognized a deferred tax asset of RMB 11.8 million related to its software enterprise status, reflecting its ongoing tax strategy[195].