Financial Performance - The company's operating revenue for the first half of 2022 was ¥117,611,525.37, representing a 5.74% increase compared to ¥111,230,543.07 in the same period last year[20]. - The net profit attributable to shareholders of the listed company decreased by 8.88% to ¥7,277,541.57 from ¥7,986,527.26 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥3,556,951.13, a slight increase of 1.34% from ¥3,509,942.87 in the previous year[20]. - The net cash flow from operating activities improved significantly to ¥3,479,581.15, compared to a negative cash flow of ¥24,527,760.97 in the same period last year[20]. - The net assets attributable to shareholders at the end of the reporting period were ¥161,285,503.40, an increase of 4.73% from ¥154,007,961.83 at the end of the previous year[20]. - Total assets decreased by 15.96% to ¥384,259,252.02 from ¥457,207,294.25 at the end of the previous year[20]. - Basic earnings per share remained stable at CNY 0.01, with diluted earnings per share also at CNY 0.01, showing no change compared to the same period last year[22]. - The weighted average return on equity increased to 4.62%, up by 1.68 percentage points from 2.94% in the same period last year[22]. - The company reported non-recurring gains totaling CNY 3,720,590.44, with significant contributions from non-current asset disposal and other operating income[22]. Market Trends - The Chinese gaming market's actual sales revenue for the first half of 2022 was CNY 147.79 billion, a year-on-year decrease of 1.8%, with user scale declining to approximately 666 million, down 0.13%[25]. - The number of new TV series released in the first half of 2022 was 155, a decrease of 23.6% compared to the same period in 2021, indicating a tightening market[27]. Strategic Initiatives - The company aims to enhance its game content innovation capabilities and focus on developing high-quality mobile games to adapt to the competitive landscape[29]. - The company plans to continue its strategic layout in the gaming and film sectors, seeking quality assets and projects to drive future profit growth[32]. - The company has established a strong user base in role-playing games, which will facilitate the transition to high-quality mobile game users[30]. - The company has two new games in development, expected to launch in the second half of 2022, including a casual mobile game and a turn-based mobile game[33]. - The company plans to launch the H5 game "G1 Dress Up" in the second half of 2022, which has been in development since June 2020[33]. Financial Position - The company's total assets as of June 30, 2022, amounted to RMB 384,259,252.02, a decrease from RMB 457,207,294.25 at the beginning of the period[94]. - The company's current assets decreased to RMB 131,447,554.08 from RMB 205,399,543.77, indicating a decline of approximately 36%[94]. - Cash and cash equivalents fell to RMB 72,210,637.67 from RMB 112,364,928.90, representing a decrease of about 36%[94]. - The company's total liabilities decreased to RMB 169,037,693.02 from RMB 252,746,329.08, reflecting a reduction of approximately 33%[95]. - The company reported a net profit of 24.14 million yuan for its subsidiary Shenzhen Taole Network Technology Co., Ltd., with total assets of 180.77 million yuan and net assets of 123.04 million yuan as of June 30, 2022[47]. Subsidiary Performance - The company’s subsidiary Wuxi Zhonglian Transmission Cultural Communication Co., Ltd. reported a net loss of 0.577 million yuan, with total assets of 31.88 million yuan and negative net assets of 12.66 million yuan as of June 30, 2022[48]. - The company’s subsidiary Shenzhen Yuerong Investment Management Co., Ltd. reported a net loss of 0.424 million yuan, with total assets of 56.90 million yuan and negative net assets of 38.80 million yuan as of June 30, 2022[49]. Risks and Challenges - The company faces risks from intensified market competition in the gaming and film industries, which could lead to player attrition and reduced market share[51]. - The company emphasizes the importance of retaining core R&D personnel to maintain competitive advantage in game development[53]. - The company’s strategy includes addressing the risks associated with policy changes in the gaming and film industries, which could impact new game launches and film production[55]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 14,873[83]. - The largest shareholder, Zhou Zhenke, holds 167,553,120 shares, representing 29.95% of the total shares[85]. - Shenzhen Dazheng Asset Management Co., Ltd. holds 50,682,752 shares, accounting for 9.06% of the total shares[85]. Legal and Compliance - The company reported significant litigation matters during the reporting period, with ongoing cases disclosed in temporary announcements[67]. - The company has commitments from major shareholders to avoid competition with its subsidiaries, ensuring compliance with agreements made in 2014 and 2015[64]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[66]. Environmental and Social Responsibility - The company has not disclosed any environmental information or measures taken to reduce carbon emissions during the reporting period[64]. Future Outlook - The company plans to focus on enhancing its capital structure and improving profitability in the upcoming quarters[131]. - Future guidance indicates a projected revenue growth of approximately 10% for the next quarter, driven by new product launches[123].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 56,099,613.63, representing a year-on-year increase of 10.36%[5] - The net profit attributable to shareholders decreased by 62.71% to CNY 1,447,289.02 compared to the same period last year[5] - Basic and diluted earnings per share were both CNY 0.003, reflecting a decline of 57.14%[6] - Net profit for Q1 2022 was ¥2,472,041.10, a decrease of 51.2% from ¥5,068,447.31 in Q1 2021[18] - In Q1 2022, the company's total comprehensive income amounted to CNY 2,472,041.10, a decrease of 51.2% compared to CNY 5,068,447.31 in Q1 2021[19] Cash Flow - The net cash flow from operating activities was CNY 2,758,472.82, down 8.76% year-on-year[5] - Cash inflows from operating activities totaled CNY 56,591,401.13, a decrease of 2.2% from CNY 57,849,840.19 in Q1 2021[21] - The net cash flow from operating activities was CNY 2,758,472.82, down 8.8% from CNY 3,023,247.19 in the previous year[21] - Cash inflows from investment activities increased significantly to CNY 14,430,816.46, up 43.3% from CNY 10,085,847.89 in Q1 2021[21] - The net cash flow from investment activities was CNY 14,425,286.41, a rise of 47.4% compared to CNY 9,789,950.90 in the same quarter last year[21] - Cash outflows from financing activities totaled CNY 42,452,050.60, which is double the CNY 22,093,891.92 recorded in Q1 2021[22] - The company reported a net decrease in cash and cash equivalents of CNY 25,268,868.31 for the quarter, compared to a decrease of CNY 9,279,971.48 in the same period last year[22] Assets and Liabilities - Total assets at the end of the reporting period were CNY 415,384,656.90, a decrease of 9.15% from the end of the previous year[6] - Total liabilities decreased to ¥230,097,026.73 in Q1 2022 from ¥274,391,705.18 in Q1 2021, a reduction of 16.1%[15] - Current assets totaled ¥165,442,321.86 as of March 31, 2022, down from ¥205,399,543.77 at the end of 2021, a decline of 19.4%[14] - The company reported a decrease in cash and cash equivalents to ¥87,096,060.59 from ¥112,364,928.90, a drop of 22.4%[14] - The company's total equity increased slightly to ¥185,287,630.17 in Q1 2022 from ¥182,815,589.07 in Q1 2021[15] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 11,659[9] - The largest shareholder, Zhou Zhenke, holds 29.95% of the shares, with 135 million shares pledged[9] Research and Development - Research and development expenses increased to ¥18,101,936.75 in Q1 2022, compared to ¥15,756,627.78 in Q1 2021, marking a growth of 14.8%[18] Future Plans - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[16]

Financial Performance - The company reported a net profit attributable to shareholders of -113.16 million RMB for 2021, a decrease of 584.69% compared to the previous year[5]. - Total revenue for 2021 was 214.26 million RMB, down 28.39% from 299.19 million RMB in 2020[23]. - The net cash flow from operating activities was 6.03 million RMB, a decline of 93.45% compared to 92.19 million RMB in 2020[23]. - The company's total assets decreased by 21.28% to 457.21 million RMB from 580.79 million RMB in 2020[23]. - The company's net assets attributable to shareholders fell by 42.43% to 154.01 million RMB from 267.52 million RMB in 2020[23]. - Basic earnings per share for 2021 was -0.20 CNY, a decrease of 600% compared to 0.04 CNY in 2020[25]. - The weighted average return on equity dropped to -53.74%, a decrease of 62.65 percentage points from 8.91% in 2020[25]. - The company reported a net loss of 30.84 million RMB for its subsidiary Wuxi Zhonglian Chuan Dong, indicating challenges in the film production sector[72]. - The company reported a net loss of RMB 1.54 billion in retained earnings, worsening from a loss of RMB 1.43 billion in the previous year[186]. - The company reported a net profit attributable to shareholders of -113.16 million yuan for the year 2021, with the parent company achieving a net profit of -270.51 million yuan[114]. Revenue and Market Trends - The company faced significant challenges in 2021, leading to a substantial decline in both revenue and profit margins[5]. - The gaming market in China generated 296.51 billion CNY in 2021, with a year-on-year growth of 6.40%[37]. - The number of game users in China reached 666 million in 2021, a slight increase of 0.22% compared to 2020[37]. - The revenue from self-developed games in China was CNY 255.82 billion, with a year-on-year increase of 6.51%[38]. - The company is focusing on game business development, with two new game products expected to launch in 2022[35]. - The company plans to maintain existing game profitability while exploring new cooperation channels[77]. - The online game "Peach Blossom Source" generated revenue of 4,934 million RMB, while the mobile game version generated 19,760 million RMB, indicating a significant contribution to overall revenue[65]. Operating Costs and Expenses - The company’s operating costs decreased by 89.69% to CNY 11.73 million, primarily due to the lack of new media releases in the current period[44][45]. - Sales expenses increased by 90.88% to CNY 57.92 million, attributed to increased advertising for gaming products[44][45]. - Research and development expenses rose by 6.92% to CNY 67.74 million, driven by higher personnel costs[46]. - Total operating costs for 2021 were CNY 225,568,704.56, down 18.1% from CNY 275,332,226.13 in 2020[191]. Legal and Compliance Issues - The company has faced challenges in recovering certain receivables, with ongoing legal actions to enforce judgments related to compensation payments[119]. - The company is involved in a civil lawsuit regarding a compensation claim amounting to 2.48 million yuan, with a judgment requiring joint liability for repayment[134]. - The company has incurred legal fees of 594,885.90 yuan related to ongoing litigation[136]. - The company has faced multiple lawsuits, indicating a complex legal environment that could affect its operations[134]. - The company is currently awaiting the execution of judgments from previous lawsuits, which have not yet been enforced[134]. Governance and Management - The company has implemented a transparent governance structure, ensuring compliance with legal and regulatory requirements, and protecting the rights of all shareholders, particularly minority investors[85]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards and promoting responsible decision-making[86]. - The company has organized 2 performance briefings to communicate its performance to investors and address their concerns, enhancing transparency and investor relations[88]. - The company has established a competitive compensation and benefits system to retain core R&D personnel, which is essential for maintaining competitive advantage in game development[80]. - The company has a structured governance framework with clear roles for board members and management[93]. Future Outlook and Risks - The company has indicated potential risks in future development strategies, urging investors to be cautious[6]. - The gaming industry in China is experiencing intense competition, which poses risks to the company's market share and overall performance[78]. - The gaming industry faces risks related to rapid product updates, limited product lifecycles, and fast-changing user preferences, which could negatively impact operating performance if new games do not meet market expectations[79]. - Regulatory changes in the gaming and film industries pose risks, such as stricter approval processes for new games and potential challenges in film distribution due to compliance issues[82]. Financial Position and Assets - The company's total liabilities were RMB 274.39 million, slightly down from RMB 280.05 million in the previous year, indicating a decrease of about 2.4%[185]. - The total equity attributable to shareholders decreased to RMB 154.01 million from RMB 267.52 million, reflecting a decline of approximately 42.5%[186]. - Cash and cash equivalents stood at RMB 112.36 million, down from RMB 130.30 million, which is a decrease of about 13.7%[184]. - The company’s non-current liabilities increased by 107.55% to 83,467,401.96 CNY, primarily due to the reclassification of long-term borrowings to current liabilities[61]. - The company has reported a total guarantee amount of 80 million RMB, which accounts for 43.76% of the company's net assets[143].

Financial Performance - The company's operating revenue for Q3 2021 was ¥47,400,340.54, representing a year-over-year increase of 13.35%[5] - The net profit attributable to shareholders for Q3 2021 was a loss of ¥13,045,350.49, a decrease of 415.85% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥2,229,292.13, down 155.99% year-over-year[5] - The net profit attributable to shareholders for the year-to-date was a loss of ¥5,058,823.23, a decrease of 112.94% compared to the same period last year[5] - Total operating revenue for the first three quarters of 2021 was ¥158.63 million, a decrease of 37.24% compared to ¥252.86 million in the same period of 2020[21] - Net profit for the first three quarters of 2021 was a loss of ¥2.16 million, compared to a profit of ¥44.67 million in the same period of 2020, indicating a significant decline[22] Assets and Liabilities - The total assets at the end of the reporting period were ¥541,926,386.33, a decrease of 6.69% from the end of the previous year[6] - The total assets as of September 30, 2021, amounted to CNY 541,926,386.33, a decrease from CNY 580,794,339.89 at the end of 2020[18] - Current assets totaled CNY 210,965,078.01, down from CNY 257,296,000.58 year-over-year[16] - The company's total liabilities decreased by 50.00% in long-term borrowings due to repayment of some due loans[9] - The company's total liabilities were CNY 251,846,188.32, down from CNY 280,046,225.16 year-over-year[17] - The total current liabilities were CNY 201,192,388.97, slightly up from CNY 199,971,898.16 year-over-year[17] - The total liabilities rose from 280,046,225.16 RMB to 291,538,822.44 RMB, an increase of about 4.1%[31] Cash Flow - The cash flow from operating activities for the year-to-date was a negative ¥16,086,462.79, reflecting a decrease of 123.28% year-over-year[5] - The company reported a net cash outflow from operating activities of ¥16.09 million for the first three quarters of 2021, contrasting with a net inflow of ¥69.11 million in 2020[25] - The net cash flow from investment activities was 10,080,353.06 RMB, compared to a negative cash flow of -27,753,613.80 RMB in the previous year, indicating a significant improvement[26] - The net cash flow from financing activities was -35,225,148.00 RMB, compared to -69,798,532.23 RMB in the same period last year, showing a reduction in cash outflow by about 49.6%[26] - The company reported a cash outflow of 55,225,148.00 RMB from financing activities, compared to 69,798,532.23 RMB last year, reflecting a decrease of about 20.9%[26] Expenses - The company reported a significant increase of 129.26% in selling expenses year-to-date, attributed to enhanced operational promotion efforts[9] - Total operating costs for the first three quarters of 2021 were ¥157.35 million, down from ¥212.48 million in 2020, reflecting a reduction of 26.00%[21] - Research and development expenses increased to ¥49.05 million in 2021 from ¥44.73 million in 2020, representing an increase of 9.84%[21] - Sales expenses rose sharply to ¥46.20 million in 2021, compared to ¥20.15 million in 2020, marking an increase of 129.00%[21] Shareholder Information - The top shareholder, Zhou Zhenke, holds 29.95% of the shares, with a total of 167,553,120 shares[12] - The company has a total of 10,077 common stock shares outstanding as of the reporting date[12] - The total equity attributable to shareholders was CNY 262,326,042.71, a slight decrease from CNY 267,516,950.55[18] - The company's equity attributable to shareholders decreased slightly from 267,516,950.55 RMB to 267,384,865.94 RMB, a decline of approximately 0.05%[31] Other Information - The basic earnings per share for Q3 2021 was -¥0.02, a decline of 300.00% compared to the previous quarter[6] - Basic and diluted earnings per share for the first three quarters of 2021 were both -¥0.01, compared to ¥0.07 in 2020[23] - The company has no significant new product launches or technological advancements reported during this period[14] - The company recorded an investment income of ¥320.47 thousand in 2021, a significant increase from ¥29.89 thousand in 2020[21] - The company reported a credit impairment loss of ¥4.70 million in 2021, down from ¥8.96 million in 2020, indicating improved asset quality[21]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥111,230,543.07, a decrease of 47.29% compared to ¥211,038,685.35 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was ¥7,986,527.26, down 77.16% from ¥34,973,722.16 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥3,509,942.87, a decline of 89.33% compared to ¥32,883,693.89 in the same period last year[20]. - The net cash flow from operating activities was -¥24,527,760.97, worsening from -¥6,541,421.76 in the previous year[20]. - Basic earnings per share for the first half of 2021 were ¥0.01, down 83.33% from ¥0.06 in the same period last year[21]. - The weighted average return on net assets decreased by 10.02 percentage points to 2.94% from 12.96% in the previous year[21]. - The company reported a total non-recurring profit and loss of 4,476,584.39, with significant contributions from government subsidies amounting to 1,962,427.56 and a reversal of impairment provisions for receivables totaling 1,620,000.00[22]. - The company reported a net loss of CNY 1,419,616,791.28 in retained earnings, a slight improvement from a loss of CNY 1,427,471,233.93 at the end of 2020[89]. - The company's net profit for the first half of 2021 was CNY 10,428,006.64, a decrease of 73.5% compared to CNY 39,310,674.33 in the same period of 2020[95]. - The company reported a significant lawsuit where the defendants are required to pay performance compensation of approximately RMB 83 million and additional penalties[68]. Assets and Liabilities - The total assets at the end of the reporting period were ¥557,881,683.09, a decrease of 3.95% from ¥580,794,339.89 at the end of the previous year[20]. - The total liabilities of the company were CNY 255,214,435.59, compared to CNY 280,046,225.16 at the end of 2020, representing a reduction of approximately 8.8%[89]. - The company's cash and cash equivalents stood at CNY 81,484,824.09, down from CNY 130,300,654.83 at the end of 2020, marking a decline of about 37.4%[87]. - The company's total equity increased slightly to CNY 302,667,247.50 from CNY 300,748,114.73 at the end of 2020, reflecting a growth of approximately 0.7%[89]. - The company's total assets amounted to CNY 661,770,248.32 as of June 30, 2021, compared to CNY 638,971,961.24 at the end of 2020, reflecting an increase of 3.9%[92]. - The total liabilities were CNY 104,313,976.94 as of June 30, 2021, an increase from CNY 98,182,697.66 at the end of 2020, marking a rise of 6.5%[92]. Operational Highlights - The main business focuses on the development and operation of online games and the production and distribution of films and television series[24]. - The gaming market is experiencing increased competition, with a notable decline in user growth and tightening regulations impacting the industry[26]. - The company has launched two new games in the first half of 2021, with three additional games currently in development, expected to launch in the second half of 2021[30]. - The company’s subsidiary, Qiyao Interactive Entertainment, has successfully launched the Vietnamese version of the game "Magic World War" on July 3, 2021[32]. - The film and television industry is undergoing an adjustment period, with the company reducing investments and focusing on the distribution of existing projects to recover costs[27]. - The company is actively promoting the release of the web drama "Journey to the West: Daughter Country" and is in communication for the second round of distribution for "Fox's Summer"[33]. Management and Governance - The company emphasizes its strong management team with extensive experience from leading gaming companies, which enhances its operational efficiency and market position[28]. - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[58]. - The company has guaranteed the independence of its personnel, assets, finances, and operations since October 8, 2014, ensuring no conflicts of interest with minority shareholders[62]. - The company has engaged Rongcheng Accounting Firm for the audit of its 2021 financial statements and internal controls, continuing from the previous year[65]. - The management team remains unchanged, with Huang Ping as the company leader and Fei Haijiang overseeing accounting[123]. Risks and Challenges - The company faces significant risks from intensified industry competition in both the film and gaming sectors, which could impact future performance[51]. - The company acknowledges the risk of product development in the gaming industry, where failure to meet market expectations could negatively affect revenue[53]. - There is a risk of goodwill impairment if the operational performance of subsidiaries like Taole Network and Qiyao Interactive deteriorates[54]. - The company is subject to policy risks that could affect its operations in the film, gaming, and equity investment sectors[55]. - The overall financial health shows signs of recovery, but the company still faces challenges in achieving profitability[116]. Financial Strategy and Capital Management - The company continues to focus on internal capital management and has not indicated any changes in its financial strategy[115]. - The company completed a non-public offering of 76,741,047 shares at a price of RMB 20.05 per share, raising a total of RMB 1,510,581,251.30 after expenses, increasing total share capital to 139,866,047 shares[127]. - The company executed a capital reserve conversion, increasing total share capital from 139,866,047 shares to 559,464,188 shares by issuing 419,598,141 additional shares[129]. - The company has maintained a consistent capital stock of 559,464,188 throughout the reporting periods[113]. Accounting and Financial Reporting - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting its financial position and operating results accurately[135]. - The company applies fair value measurement for identifiable assets and liabilities acquired in business combinations under non-common control, recognizing goodwill when the acquisition cost exceeds the fair value of net identifiable assets[140]. - Financial instruments are assessed for impairment based on expected credit losses, ensuring accurate recognition of potential losses[176]. - The company recognizes expected credit losses for financial assets measured at amortized cost and other specified financial instruments[176]. - Financial assets are derecognized when the contractual rights to cash flows expire or are transferred, and the transfer meets derecognition criteria[162].

Financial Performance - Operating revenue for the period was CNY 50,832,122.65, representing a decline of 15.20% year-on-year[6] - Net profit attributable to shareholders was CNY 3,881,083.11, down 85.40% from the same period last year[6] - Basic and diluted earnings per share were both CNY 0.01, down 80.00% compared to CNY 0.05 in the previous year[6] - The company's net profit attributable to the parent company for Q1 2021 was 3.88 million yuan, a decrease of 2,269.66 million yuan compared to the same period last year, representing a year-on-year decline of approximately 85.3%[13] - Total revenue for Q1 2021 was ¥50,832,122.65, a decrease of 15.4% compared to ¥59,940,820.41 in Q1 2020[27] - Net profit for Q1 2021 was ¥5,068,447.31, down 79.5% from ¥24,592,301.45 in Q1 2020[28] - The total comprehensive loss for Q1 2021 was ¥3,442,000.11, compared to a loss of ¥3,529,093.72 in the same period last year[31] Cash Flow and Liquidity - Cash flow from operating activities was CNY 3,023,247.19, a significant improvement from a negative cash flow of CNY 11,104,934.02 in the previous year[6] - The net cash flow from operating activities was ¥3,023,247.19 in Q1 2021, a significant improvement compared to a net outflow of ¥11,104,934.02 in Q1 2020[32] - The cash flow from financing activities resulted in a net outflow of ¥22,093,891.92 in Q1 2021, compared to a smaller outflow of ¥2,470,270.83 in Q1 2020[33] - The financial data indicates a stable liquidity position with current assets significantly exceeding current liabilities[45] Assets and Liabilities - Total assets at the end of the reporting period were CNY 573,555,525.93, a decrease of 1.25% compared to the end of the previous year[6] - The company's total assets as of March 31, 2021, were 573.56 million yuan, a decrease from 580.79 million yuan at the end of the previous year[19] - Total liabilities as of March 31, 2021, were 267.89 million yuan, down from 280.05 million yuan at the end of the previous year[20] - Total assets increased from RMB 580,794,339.89 to RMB 592,133,254.84, reflecting an increase of RMB 11,338,914.95[39] - Total liabilities increased from RMB 280,046,225.16 to RMB 291,538,822.44, an increase of RMB 11,492,597.28[40] Shareholder Information - The number of shareholders at the end of the reporting period was 11,777[11] - The total equity attributable to the parent company was 271.27 million yuan, an increase from 267.52 million yuan at the end of the previous year[20] - The total equity attributable to shareholders decreased to ¥537,347,263.47 from ¥540,789,263.58[25] Expenses and Costs - Sales expenses for the period were 15.56 million yuan, an increase of 1,129.31 million yuan year-on-year, primarily due to increased advertising spending by the subsidiary's gaming division[13] - Management expenses amounted to 12.25 million yuan, up 423.24 million yuan year-on-year, mainly due to increased labor costs at the subsidiary[13] - Total operating costs increased to ¥48,805,815.37 in Q1 2021, up 43.9% from ¥33,897,052.11 in Q1 2020[27] Strategic Focus - The company is focusing on market expansion and new product development as part of its future strategy[43] - The company plans to enhance its technology capabilities through ongoing research and development initiatives[43] - The company is exploring potential mergers and acquisitions to strengthen its market position and drive growth[43] - The company’s management indicated a focus on improving operational efficiency and reducing costs in future quarters[31]

Financial Performance - The company achieved a net profit attributable to shareholders of 13.77 million yuan in 2020, a significant recovery from a loss of 567.61 million yuan in 2019[5]. - Operating revenue for 2020 was 299.19 million yuan, representing a 56.03% increase compared to 191.76 million yuan in 2019[23]. - The net cash flow from operating activities increased by 154.62% to 92.19 million yuan in 2020, up from 36.21 million yuan in 2019[23]. - Basic earnings per share improved to 0.04 yuan in 2020, compared to a loss of 1.01 yuan per share in 2019[24]. - The weighted average return on equity increased to 8.91% in 2020, a rise of 110.61 percentage points from -101.70% in 2019[24]. - The total non-recurring gains and losses for 2020 amounted to ¥9,664,436.96, a significant decrease from ¥67,150,332.91 in 2019[27]. - The company reported a net loss of ¥1,427,471,233.93 in 2020, compared to a loss of ¥1,450,818,866.43 in 2019, indicating a slight improvement[184]. - The total comprehensive income for 2020 was ¥29,207,708.70, recovering from a comprehensive loss of ¥567,205,485.93 in 2019[192]. Revenue and Costs - The company achieved a total revenue of RMB 299.19 million in 2020, representing a 56.03% increase compared to RMB 191.76 million in the previous year[42]. - The gaming segment generated RMB 190.42 million in revenue, with a gross margin of 93.62%, while the film and television segment reported revenue of RMB 103.71 million with a gross margin of only 2.38%[46]. - Total operating revenue for 2020 reached ¥299,192,717.32, a significant increase of 56% compared to ¥191,759,034.64 in 2019[189]. - Total operating costs for 2020 were ¥275,332,226.13, up from ¥209,112,773.80 in 2019, reflecting a 32% increase[189]. Cash Flow - Cash flow from operating activities in 2020 was ¥299,042,095.86, an increase from ¥235,196,425.27 in 2019[196]. - Operating cash inflow for 2020 was CNY 303,699,308.94, an increase from CNY 240,392,398.67 in 2019, representing a growth of approximately 26.4%[197]. - Net cash flow from operating activities was CNY 92,190,572.14, significantly up from CNY 36,206,484.62 in 2019, marking an increase of approximately 154.1%[197]. - Cash inflow from investment activities totaled CNY 118,261,154.61, compared to CNY 61,639,701.39 in 2019, reflecting an increase of about 91.5%[198]. - Cash outflow from investment activities was CNY 147,459,886.16, up from CNY 61,262,061.60 in the previous year, representing an increase of approximately 140.5%[198]. Assets and Liabilities - The total assets decreased by 11.10% to 580.79 million yuan at the end of 2020, down from 653.28 million yuan at the end of 2019[23]. - The company's total current assets decreased from ¥180,238,537.34 in 2019 to ¥103,146,281.09 in 2020, a decline of about 42.8%[186]. - Total liabilities decreased from ¥381,743,598.14 in 2019 to ¥280,046,225.16 in 2020, a decline of around 26.6%[183]. - Owner's equity increased from ¥271,540,406.03 in 2019 to ¥300,748,114.73 in 2020, an increase of approximately 10.5%[184]. Strategic Initiatives - The company plans to launch three new games in the first half of 2021, including two casual mobile games and one turn-based mobile game, indicating a focus on expanding its gaming portfolio[37]. - The company is focusing on developing high-quality mobile games to adapt to the increasingly competitive mobile game market[34]. - The company is actively exploring overseas markets for its gaming products, indicating a strategy for international expansion[81]. - The company aims to enhance its game content innovation capabilities and focus on the development of the gaming business as part of its strategic goals for 2021[79]. Risks and Challenges - The company has outlined potential risks in its future development strategy, which investors should be aware of[9]. - The company has identified risks related to the rapid product lifecycle in the gaming industry, emphasizing the importance of timely market adaptation[85]. - The company acknowledges potential policy risks that could impact its operations in both the film and gaming industries[87]. - The gaming industry is experiencing intensified competition, and the company recognizes the need to maintain or improve its competitive advantages to ensure sustained performance[83]. Shareholder Information - The largest shareholder, Zhou Zhenke, holds 167,553,120 shares, representing 29.95% of the total shares, with 135,000,000 shares pledged[122]. - The total number of shares held by the top ten shareholders amounts to 328,028,956, which is approximately 58.36% of the total shares[122]. - The total number of ordinary shareholders increased from 8,688 to 8,886 during the reporting period[120]. Management and Governance - The company has established a performance evaluation and incentive mechanism for senior management, ensuring transparency and fairness[153]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[151]. - The company has implemented a training plan to enhance employee skills and overall quality, focusing on management and technical talent[148]. - The company has maintained a stable shareholding structure with no significant changes reported during the year[138].

Financial Performance - Operating revenue for the year-to-date was CNY 252,855,406.90, an increase of 79.48% year-on-year[8] - Net profit attributable to shareholders for the year-to-date was CNY 39,104,008.03, a significant increase of 681.99% compared to the same period last year[8] - Basic earnings per share for the period were CNY 0.07, a 600% increase from CNY 0.01[8] - The company's net profit attributable to the parent company for the first three quarters of 2020 was CNY 39.10 million, a significant increase of CNY 34.10 million compared to the same period last year[16] - Operating revenue for the reporting period reached CNY 252.86 million, up CNY 111.98 million or 79.3% year-on-year, primarily driven by increased user engagement in gaming and revenue from film distribution[16] - The company reported a total profit for the first nine months of 2020 was CNY 77,051,406.94, a recovery from a loss of CNY 14,921,996.17 in the same period of 2019[35] Cash Flow - The company reported a net cash flow from operating activities of CNY 69,105,240.31, compared to a negative cash flow of CNY 17,582,567.29 in the same period last year[8] - The company reported a net cash inflow from operating activities of CNY 69.11 million, a year-on-year increase of CNY 86.69 million, attributed to higher sales collections and reduced tax payments[18] - The net cash flow from operating activities for the first three quarters of 2020 was ¥69,105,240.31, a significant improvement from a net outflow of ¥17,582,567.29 in the previous year[39] - The company’s cash inflow from sales of goods and services reached ¥244,658,236.23 in the first three quarters of 2020, compared to ¥153,174,147.86 in the same period of 2019, marking a growth of approximately 59.7%[39] Assets and Liabilities - Total assets at the end of the reporting period were CNY 573,429,540.83, a decrease of 12.22% compared to the end of the previous year[8] - The balance of trading financial assets at the end of the period was CNY 25,010,700, an increase from CNY 0 at the end of the previous year[13] - Accounts receivable decreased to CNY 27,644,400.00, down by 42.29% from CNY 47,893,300.00 at the end of the previous year[13] - Inventory decreased to CNY 42,174,100.00, a reduction of 47.73% compared to CNY 80,640,200.00 at the end of the previous year[13] - The total liabilities decreased to CNY 257.22 million, down from CNY 381.74 million at the end of the previous year, indicating improved financial stability[24] - Total liabilities increased to CNY 187,797,396.02 from CNY 103,080,223.25, indicating a significant rise in financial obligations[27] Equity and Shareholder Information - The weighted average return on equity increased to 14.38%, up by 0.60 percentage points from 13.78%[8] - Minority interests increased to CNY 32.93 million, up CNY 13.71 million or 71.4% year-on-year, due to changes in the company's ownership stake in subsidiaries[25] - The company’s equity attributable to shareholders was 252,315,458.18 RMB, reflecting the overall financial health of the organization[46] - Shareholders' equity stands at 527,022,238.59, reflecting a negative retained earnings of -1,196,921,865.39[50] Operational Costs - Operating costs for the period were CNY 110.65 million, an increase of CNY 101.84 million or 115.0% year-on-year, mainly due to the recognition of costs associated with film revenue[16] - Total operating costs for Q3 2020 were CNY 41,071,261.54, an increase of 18.2% from CNY 34,761,397.91 in Q3 2019[30] Other Financial Metrics - The company incurred credit impairment losses of CNY 5,899,598.11 in Q3 2020, compared to CNY 332,776.24 in Q3 2019, reflecting an increase of over 1,675%[31] - The company reported investment income of CNY 84,000,000.00 in the first nine months of 2020, a significant increase compared to a loss of CNY 4,392,523.75 in the same period of 2019[35] - The company reported total comprehensive income of CNY 5,357,152.36 for Q3 2020, down from CNY 17,744,270.65 in Q3 2019, a decline of approximately 69.8%[32]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥211,038,685.35, representing a 134.36% increase compared to ¥90,048,526.06 in the same period last year[21]. - The net profit attributable to shareholders was ¥34,973,722.16, a significant recovery from a loss of ¥11,059,187.68 in the previous year[21]. - The basic earnings per share for the first half of 2020 was ¥0.06, recovering from -¥0.02 in the same period last year[22]. - The weighted average return on equity increased by 14.28 percentage points to 12.96% from -1.32% in the previous year[22]. - The company reported a total of ¥2,090,028.27 in non-recurring gains and losses for the period[24]. - The company reported a net profit of 39,310,674.33 RMB for the first half of 2020, compared to a net loss of 7,596,601.40 RMB in the same period of 2019, indicating a significant turnaround[100]. - The operating profit for the first half of 2020 was 76,881,648.88 RMB, a substantial improvement from a loss of 11,119,972.36 RMB in the first half of 2019[104]. - The company reported a total comprehensive income of 39,310,674.33 RMB for the first half of 2020, compared to a comprehensive loss of 7,596,601.40 RMB in the previous year[100]. - The total comprehensive income for the first half of 2020 was 76,881,648.88 RMB, indicating a significant increase compared to the previous period[123]. Cash Flow and Assets - The net cash flow from operating activities was -¥6,541,421.76, an improvement from -¥60,594,071.00 in the same period last year[21]. - Cash and cash equivalents at the end of the period amounted to ¥114,677,896.47, representing 18.52% of total assets, an increase from 8.17% in the same period last year[41]. - Accounts receivable decreased by 14.49% to ¥103,380,379.05, down from ¥120,893,327.39 in the previous year, which accounted for 16.70% of total assets[41]. - Inventory decreased significantly by 81.11% to ¥36,513,715.09, down from ¥193,302,530.93, reflecting a decline in the valuation of film inventory[41]. - Cash inflows from operating activities totaled 127,655,083.25 RMB in the first half of 2020, up from 93,515,675.24 RMB in the same period of 2019[106]. - The ending cash and cash equivalents balance was 5,307,724.86 RMB, compared to 1,857,493.23 RMB at the end of the same period in 2019, indicating an increase[112]. - The total cash and cash equivalents decreased by 32,689,781.58 RMB in the first half of 2020, compared to a decrease of 46,654,453.59 RMB in the same period of 2019[112]. Liabilities and Equity - The total assets decreased by 5.23% to ¥619,115,682.16 from ¥653,284,004.17 at the end of the previous year[21]. - The total liabilities decreased to ¥99,310,924.84 from ¥187,797,396.02 at the end of 2019, showing a reduction of approximately 47%[96]. - The company's equity attributable to shareholders increased to ¥603,903,887.47 from ¥527,022,238.59 at the end of 2019, reflecting a growth of 15%[96]. - The total owner's equity at the end of the reporting period was approximately 310.85 million[119]. - The company experienced a net increase in equity of approximately 34.97 million during the reporting period[116]. Operational Highlights - The company’s gaming business saw significant user growth due to the pandemic, with increased new users, active users, and user engagement leading to higher in-game purchases[37]. - The company is focusing on developing high-quality mobile games, leveraging its strong R&D capabilities and established user base from previous gaming products[30]. - The film and television sector is benefiting from increased consumer spending on cultural products, supported by government policies and the rise of new media channels[28]. - The company plans to continue optimizing existing games and actively expand new cooperation channels in the gaming market[34]. Risks and Challenges - The company has identified potential risks in its future development, which are detailed in the report[7]. - The company is currently facing asset freezes and significant uncertainties regarding its ongoing operations due to financial difficulties[50]. - The company faces intensified competition in the film and gaming industries, which may impact future performance[51]. - The risk of sales for film and television works is uncertain, as audience preferences significantly influence viewership and box office revenue[51]. - There is a risk of goodwill impairment related to the acquisitions of Taole Network and Qiyao Interactive, which could adversely affect the company's financial results[53]. Financial Management and Accounting - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for the reporting period[6]. - The company has renewed the appointment of Rongcheng Accounting Firm for the 2020 financial statement audit[61]. - The company’s financial statements are prepared based on the principle of ongoing operations[137]. - The company’s accounting policies comply with the requirements of the enterprise accounting standards, ensuring a true and complete reflection of its financial status[140]. - The company has classified financial assets into three categories: amortized cost, fair value through profit or loss, and fair value through other comprehensive income[193].

Financial Performance - The company reported a net profit attributable to shareholders of -¥424.99 million for 2019, with a cumulative undistributed profit of -¥1.196 billion at the end of the year, leading to a proposal not to distribute profits for the year[6]. - Operating revenue for 2019 was ¥191.76 million, a decrease of 4.28% compared to ¥200.32 million in 2018[22]. - The basic earnings per share for 2019 was -¥1.01, showing a 50% improvement from -¥2.02 in 2018[23]. - The company reported a total operating income of CNY 191.76 million in 2019, with a net profit attributable to the parent company of -CNY 567.61 million[51]. - The company reported a net profit of -429.49 million yuan for 2019, with accumulated undistributed profits of -1.19692 billion yuan, leading to a proposal of no profit distribution for the year[108]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥36.21 million, compared to -¥33.23 million in the previous year, marking a 208.96% increase[22]. - The total assets decreased by 51.75% to ¥653.28 million from ¥1.35 billion in 2018[22]. - The company generated a net cash flow from operating activities of ¥53,789,051.91 in Q4 2019, a significant improvement compared to -¥37,905,634.69 in Q1[25]. - Cash and cash equivalents decreased by 23.82% to 142,176,205.05, accounting for 21.76% of total assets[66]. - The company reported a goodwill impairment of 35.66%, with goodwill at 248,878,192.70[67]. Market and Industry Trends - The domestic game market's actual sales revenue growth rate improved in 2019, primarily driven by the stable growth of the mobile game market[33]. - The actual sales revenue of China's game market reached CNY 233.02 billion, with a growth rate of 8.7%[44]. - The mobile game market in China achieved actual sales revenue of CNY 151.37 billion, representing a year-on-year growth of 13.0%[44]. - The global game market revenue in 2019 is expected to reach USD 148.8 billion, with the mobile game market accounting for the largest share at USD 68.16 billion, growing by 9.7%[46]. - The company recognizes the risk of intensified competition in the gaming industry, emphasizing the need to maintain competitive advantages and develop classic IPs[102]. Strategic Initiatives - The company plans to focus on high-quality game development in response to stricter regulations and a shift towards premium content in the gaming industry[33]. - The company aims to enhance its competitive edge by investing in high-quality IPs in the cultural industry[83]. - The company is actively optimizing existing games and expanding new cooperation channels to enhance its market presence[48]. - The company plans to actively invest in quality cultural projects and leverage partnerships to enhance its project resource pool[98]. - The company aims to enhance its game business and extend its operational capabilities, focusing on innovation and new product development[96]. Subsidiary Performance - The actual net profit of the subsidiary Kangxi Film Industry for 2019 was -RMB 51.44 million, falling short of the promised RMB 120 million, resulting in a completion rate of -428.69%[115]. - The net profit of the subsidiary Qiyao Interactive Entertainment for the reporting period was 54.92 million RMB[79]. - The cumulative actual net profit of Qiyao Interactive as of the reporting period was -RMB 53.48 million, against a promised total of RMB 39.1 million, leading to a completion rate of -136.77%[115]. - The company’s subsidiary, Taole Network, is dedicated to the development and operation of turn-based online and mobile games, with key products launched in 2019[48]. - As of December 31, 2019, the total assets of the subsidiary Taole Network were 24,949.54 million RMB, with a net profit of 4,245.68 million RMB[78]. Governance and Compliance - The company has committed to strengthening internal controls and governance to mitigate major risks and promote stable operations[125]. - The company has undergone a management change with the resignation of Fang Jibin as Deputy General Manager and Secretary of the Board due to job reassignment[175]. - The company has independent directors with various roles in other organizations, enhancing its governance structure[173]. - The audit opinion confirms that the financial statements fairly present the company's financial position and results of operations for the year ended December 31, 2019[197]. - The company has been actively involved in compliance and corrective actions following regulatory scrutiny, demonstrating a commitment to governance[178]. Shareholder Structure - The total number of ordinary shares is 559,464,188, with 307,866,656 shares subject to restrictions, representing 55.03% of the total[150]. - The largest shareholder, Zhou Zhenke, holds 167,553,120 shares, representing 29.95% of the total shares, with 165,800,000 shares pledged[157]. - The shareholder structure shows a significant concentration of ownership among a few individuals and entities, with the top three shareholders holding over 46% of the total shares[157]. - The company has not issued any new securities during the reporting period, maintaining its existing capital structure[154]. - The company has a total of 18,993,424 shares held by deceased shareholder Chen Leqiang, which have not yet been applied for public trading[159].