Financial Performance - For the first nine months of 2022, the company achieved operating revenue of CNY 3.83 billion, an increase of 9.89% year-on-year[10]. - The net profit attributable to shareholders for the first nine months of 2022 was CNY 1.01 billion, a decrease of 16.07% compared to the same period last year[10]. - The company's net profit after deducting non-recurring gains and losses for the first nine months of 2022 was CNY 0.93 billion, remaining flat year-on-year[10]. - In Q3 2022, the operating revenue was CNY 1.32 billion, representing a year-on-year increase of 20.17%[11]. - The net profit attributable to shareholders in Q3 2022 was CNY 0.32 billion, an increase of 6.15% year-on-year[11]. - The adjusted net profit attributable to shareholders for the first three quarters of 2022 was 938.95 million RMB, nearly flat compared to 938.08 million RMB in the same period last year[31]. - Net profit for the first three quarters of 2022 was CNY 1,316,100,910.12, a decrease of 8.3% compared to CNY 1,435,454,162.77 in the same period of 2021[66]. - The total profit for the first three quarters of 2022 was CNY 732,757,720.80, compared to CNY 439,346,497.43 in 2021, indicating an increase of about 67%[84]. Cash Flow - The company’s cash flow from operating activities for the first nine months of 2022 decreased by 25.35% year-on-year, totaling CNY 1.29 billion[11]. - The net cash flow from operating activities decreased by 439 million RMB compared to the same period last year, primarily due to an increase in operating expenses by 665 million RMB[27]. - The net cash flow from operating activities for Q3 2022 was 542.61 million RMB, reflecting an increase from 422.00 million RMB in Q2 2022[32]. - Cash flow from operating activities generated a net amount of CNY 1,292,527,494.26, down from CNY 1,731,388,588.48 in the previous year[69]. - Cash flow from investing activities for the first three quarters of 2022 was CNY 1,247,788,818.12, compared to CNY 628,814,716.60 in 2021, representing an increase of approximately 98%[91]. Expenses - The company incurred significant marketing expenses for new games launched in Q3 2022, impacting profitability[33]. - Sales expenses rose by 33.59% to ¥1,115,554,443.89, driven by increased marketing for new game launches[40]. - Management expenses increased by 42.43% to ¥295,749,510.80 due to a rise in average personnel and bonuses[42]. - Research and development expenses grew by 13.99% to ¥544,248,837.49, reflecting higher personnel costs[42]. - The company reported a significant increase in sales expenses to CNY 1,115,554,443.89, up from CNY 835,040,076.12 in the same period of 2021, indicating a rise of 33.6%[64]. - The company’s tax expenses for the first three quarters of 2022 were CNY 18,826,875.09, significantly lower than CNY 87,292,786.59 in 2021, indicating a decrease of about 78%[84]. Assets and Liabilities - As of September 30, 2022, total assets amounted to RMB 7,241,860,466.88, compared to RMB 7,103,275,522.22 at the end of 2021, indicating an increase of about 1.9%[58]. - Total liabilities as of September 30, 2022, were RMB 2,183,653,383.89, up from RMB 2,043,656,294.31 at the end of 2021, reflecting a rise of approximately 6.8%[60]. - The company's cash and cash equivalents stood at RMB 2,848,001,212.90 as of September 30, 2022, slightly down from RMB 2,903,341,974.65 at the end of 2021[52]. - The total current assets decreased to RMB 4,225,537,327.14 as of September 30, 2022, from RMB 4,354,443,522.29 at the end of 2021, a decline of approximately 3.0%[55]. - Non-current assets totaled RMB 3,016,323,139.74 as of September 30, 2022, up from RMB 2,748,831,999.93 at the end of 2021, indicating an increase of about 9.8%[58]. - The company's total equity decreased to CNY 3,421,644,487.37 from CNY 3,850,189,462.70 at the end of 2021[80]. Revenue and Sales - The company's sales receipts increased by 226 million RMB year-on-year, mainly driven by the sales of "Yinian Xiaoyao (Mainland Version)" and contributions from new titles launched last year[27]. - Revenue from sales of goods and services for the first three quarters of 2022 reached CNY 4,060,652,409.20, an increase of 5.9% from CNY 3,834,588,256.81 in the first three quarters of 2021[69]. - The company's operating revenue for the first three quarters of 2022 was CNY 280,145,388.22, a slight increase of 0.19% compared to CNY 279,627,313.64 in the same period of 2021[82]. Foreign Exchange and Other Income - The company reported a foreign exchange gain of CNY 0.21 billion for the first nine months of 2022, an increase of CNY 0.22 billion year-on-year[21]. - The third quarter saw a foreign exchange gain of 128.92 million RMB, compared to a loss of 3.25 million RMB in the same quarter last year[31]. - Other comprehensive income increased by 457.68% to ¥50,253,411.67 due to foreign currency translation adjustments[39]. - The company’s other income increased to CNY 8,924,403.66 from CNY 6,067,458.14 in the previous year[82].

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2022, representing a year-on-year increase of 15%[4]. - The net profit for the same period was RMB 300 million, which is a 10% increase compared to the previous year[4]. - The management provided a revenue guidance of RMB 2.5 billion for the full year 2022, indicating a growth target of 12%[4]. - The company's operating revenue for the first half of 2022 was CNY 2.51 billion, representing a year-on-year increase of 5.17%[34]. - The net profit attributable to shareholders for the same period was CNY 688.33 million, a decrease of 23.59% compared to the previous year[34]. - The adjusted net profit attributable to shareholders, excluding non-recurring gains and losses, was CNY 656.80 million, reflecting a year-on-year increase of 1.03%[35]. - The basic earnings per share for the first half of 2022 was CNY 9.58, a decrease of 23.60% compared to CNY 12.54 in the same period last year[51]. - The net cash flow from operating activities was CNY 749.91 million, down 27.34% year-on-year[34]. - The net cash flow from operating activities decreased by 282 million yuan compared to the same period last year, primarily due to an increase in operating expenses by 484 million yuan[198]. User Engagement and Market Expansion - User engagement metrics showed a 20% increase in daily active users, reaching 5 million users by the end of June 2022[4]. - The company reported a significant increase in user engagement, with a 25% year-over-year growth in active users[24]. - User retention rates improved to 85%, up from 75% in the previous year, indicating stronger customer loyalty[25]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2023[26]. - Market expansion efforts include entering Southeast Asian markets, with a target of achieving a 10% market share by the end of 2023[4]. Research and Development - The company has allocated RMB 200 million for research and development in new technologies and game features for the upcoming fiscal year[4]. - The company is investing 200 million RMB in R&D for new gaming technologies, aiming to enhance user experience and retention[24]. - The company has a strong R&D team with 614 personnel, accounting for 56.28% of total employees, and has invested CNY 3.79 billion in R&D in the first half of 2022, representing 15.08% of revenue[82]. - The company emphasizes the construction of a R&D middle platform, which includes a technology center, art department, audio department, and testing center to support product development and improve efficiency[87]. - The company is committed to continuous innovation and aims to produce high-quality, engaging games through its R&D strategies[83]. Product Development and Launches - The company plans to launch two new gaming titles in Q3 2022, aiming to capture a larger market share in the mobile gaming sector[4]. - New product launches are expected to contribute an additional 100 million RMB in revenue for the next fiscal year[25]. - The self-operated platform Thunder Games has successfully launched multiple high-quality games, including "Wandao Mobile" and "Yinian Xiaoyao," with significant popularity and positive reviews[95]. - "Yinian Xiaoyao" achieved 30 million new users in its first month and over 1.8 million global sales, while maintaining a peak concurrent user count of over 180,000[96]. - The company has several reserve products, including "Super Cat Plan," "Dawn Elite," and "New Manor Era," with varying game types and regions, indicating a diverse product pipeline[153]. Strategic Initiatives and Acquisitions - The company is exploring potential acquisitions to enhance its portfolio, focusing on companies with innovative gaming technologies[4]. - A strategic acquisition of a competitor is anticipated to close by Q4 2022, expected to increase market share by 10%[27]. - The company is actively exploring new IP incubation strategies, aiming to expand into various media formats such as anime and film, enhancing its market presence[188]. Marketing and User Acquisition - Marketing strategies for "Yinian Xiaoyao" included dynamic ad placements and KOL promotions, significantly boosting user acquisition during its launch phase[105]. - The company leverages big data analysis of player behavior to inform game design and operational decisions, ensuring alignment with player preferences and enhancing long-term growth[113]. - The company has implemented a self-service support system and intelligent customer service technology to enhance player experience[118]. Financial Health and Cash Flow - The company emphasized the importance of maintaining a strong cash flow, with cash reserves reported at RMB 500 million[4]. - The board confirmed no plans for dividend distribution in the current fiscal year, prioritizing reinvestment into growth initiatives[4]. - The financial expenses showed a significant decrease due to a foreign exchange gain of approximately ¥104 million, an increase of ¥115 million compared to the previous year[194]. Industry Trends and Market Insights - The mobile gaming market in China generated actual sales revenue of CNY 1,104.75 billion in the first half of 2022, accounting for 74.75% of the total market revenue[73]. - The actual sales revenue of the Chinese gaming industry in the first half of 2022 was CNY 1,477.89 billion, representing a year-on-year decrease of 1.80%[73]. - The gaming industry in China is experiencing a shift towards stable growth, with the mobile gaming market showing a revenue change of -3.74% in the first half of 2022 compared to the previous year[74].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 1,229,231,606.63, representing a year-on-year increase of 9.98%[7] - The net profit attributable to shareholders for Q1 2022 was CNY 349,652,771.04, a decrease of 4.27% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 333,109,610.36, down 6.14% year-on-year[7] - The basic earnings per share for Q1 2022 was CNY 4.87, reflecting a decrease of 4.13% compared to the previous year[10] - Total revenue for Q1 2022 reached ¥1,229,231,606.63, an increase of 10% compared to ¥1,117,723,072.88 in Q1 2021[31] - Operating profit for Q1 2022 was ¥554,156,542.35, slightly up from ¥542,707,101.44 in Q1 2021[34] - Net profit for Q1 2022 amounted to ¥453,311,674.38, compared to ¥443,372,066.37 in Q1 2021, reflecting a growth of approximately 2%[34] - The company reported a total comprehensive income of ¥450,798,706.20 for Q1 2022, compared to ¥445,029,196.77 in Q1 2021[34] Assets and Liabilities - The total assets at the end of Q1 2022 were CNY 7,469,722,617.17, an increase of 5.16% from the end of the previous year[10] - The equity attributable to shareholders at the end of Q1 2022 was CNY 4,938,014,085.97, up 7.81% year-on-year[10] - The total assets of the company reached ¥7,469,722,617.17, up from ¥7,103,275,522.22 at the end of 2021[26] - The company's total liabilities decreased to ¥1,948,310,280.83 from ¥2,043,656,294.31 year-over-year[31] - The total liabilities included accounts payable of ¥240,228,236.27, down from ¥280,694,196.20[26] - The company’s total liabilities decreased from CNY 247,523,440.17 at the end of 2021 to CNY 229,832,341.36 as of March 31, 2022[46] Cash Flow - The cash flow from operating activities for Q1 2022 was CNY 327,911,346.27, showing a slight increase of 0.10% year-on-year[7] - In Q1 2022, the company reported cash inflows from operating activities totaling CNY 1,317,748,998.68, a significant increase from CNY 941,516,506.35 in Q1 2021, representing a growth of approximately 40%[37] - The net cash flow from operating activities for Q1 2022 was CNY 327,911,346.27, slightly up from CNY 327,582,010.07 in Q1 2021, indicating stable performance[40] - Total cash outflows from operating activities in Q1 2022 amounted to CNY 989,837,652.41, compared to CNY 613,934,496.28 in Q1 2021, reflecting an increase of about 61%[40] - The company recorded cash inflows from investment activities of CNY 1,104,113,148.53 in Q1 2022, a slight increase from CNY 1,088,349,613.44 in Q1 2021[40] - Cash outflows from investment activities in Q1 2022 were CNY 1,111,525,505.26, down from CNY 1,653,185,630.16 in Q1 2021, showing a decrease of approximately 33%[40] - The net cash flow from investment activities was negative at CNY -7,412,356.73 in Q1 2022, an improvement from CNY -564,836,016.72 in Q1 2021[40] - The company’s cash and cash equivalents increased by CNY 311,628,365.07 in Q1 2022, contrasting with a decrease of CNY -236,904,360.52 in Q1 2021[40] - The cash balance as of March 31, 2022, was CNY 3,211,714,299.23, compared to CNY 1,901,987,168.64 at the end of 2021, indicating a strong liquidity position[40] Shareholder Information - The total number of common shareholders at the end of the reporting period was 21,080[18] - The largest shareholder, Lu Hongyan, holds 21,629,475 shares, representing 30.10% of the total shares[18] Research and Development - Research and development expenses for Q1 2022 were ¥170,292,364.36, an increase from ¥146,957,617.19 in Q1 2021, indicating a focus on innovation[34] - Research and development expenses increased to ¥43,782,346.81 in Q1 2022, up from ¥32,472,639.86 in Q1 2021, reflecting a growth of 35.0%[50] Investment Income - The company experienced a decrease in investment income from joint ventures by CNY 54,418,000 compared to the same period last year[11] - The company reported a significant decrease in investment income, down 88.19% year-on-year, totaling CNY 8,366,138.99[14] - The company reported a decrease in investment income to ¥3,496,664.58 in Q1 2022, down from ¥60,579,486.96 in Q1 2021, a decline of 94.2%[50] Strategic Developments - The company has not disclosed any significant new strategies or product developments in the current report[22]

Financial Performance - The company plans to distribute a cash dividend of 160.00 RMB per 10 shares, totaling an estimated 1.15 billion RMB, which represents 78.30% of the net profit attributable to shareholders for 2021[7]. - Since its IPO in January 2017, the company has cumulatively distributed cash dividends amounting to 3.57 billion RMB, which is 3.97 times the net proceeds from the IPO[7]. - In 2021, the company achieved operating revenue of CNY 4.62 billion, a year-on-year increase of 68.44%[37]. - The net profit attributable to shareholders was CNY 1.47 billion, reflecting a year-on-year growth of 40.34%[37]. - The net cash flow from operating activities reached CNY 2.42 billion, up 57.75% compared to the previous year[37]. - The total assets at the end of 2021 amounted to CNY 7.10 billion, a 31.84% increase from the end of 2020[37]. - Basic earnings per share for 2021 reached CNY 20.43, a 40.12% increase compared to CNY 14.58 in 2020[42]. - The weighted average return on equity rose to 35.97%, an increase of 4.94 percentage points from 31.03% in 2020[42]. Audit and Compliance - The company has received a standard unqualified audit report from KPMG Huazhen[6]. - There are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for providing guarantees[11]. - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[4]. - The company has not reported any instances of more than half of the directors being unable to guarantee the authenticity of the annual report[11]. - The company has not disclosed any plans for capital reserve transfers to increase share capital or other forms of profit distribution[7]. Market and Growth Strategy - Future outlook suggests an anticipated revenue increase of 30% for the upcoming year, driven by new product launches and market expansion strategies[22]. - Market expansion efforts include targeting Southeast Asian markets, with plans to establish local partnerships by Q3 2024[22]. - The company is exploring potential acquisitions to bolster its portfolio, particularly in the gaming sector, with a budget allocation of 200 million RMB for this initiative[22]. - The company aims to enhance its brand presence through targeted marketing campaigns, with a projected budget increase of 15% for marketing expenditures[22]. - The company plans to continue investing in research and development for new products, impacting short-term financial profits[41]. User Engagement and Product Development - User data shows a 40% increase in active users, indicating strong market demand and engagement with the company's offerings[22]. - The introduction of new gaming titles is expected to contribute an additional 100 million RMB in revenue over the next fiscal year[22]. - The company launched new self-developed games, including "Yin Nian Xian Yao," contributing significantly to revenue growth[38]. - The company has successfully operated several games on its platform, including "Mole Manor," which launched in June 2021 and achieved significant user growth through effective marketing[60]. - The company emphasizes community engagement through platforms like Bilibili and WeChat, actively incorporating player feedback into game development[76]. Research and Development - The company has maintained a strong R&D investment, with expenses of 332 million, 431 million, and 609 million CNY in 2019, 2020, and 2021 respectively, accounting for 15.31%, 15.70%, and 13.18% of revenue[158]. - The company has a dedicated R&D team of 530 members, representing 56.08% of total employees[158]. - The company adopts a "small steps, fast runs" R&D strategy to enhance innovation and product competitiveness while controlling development costs[162]. - The technology center focuses on general and cutting-edge technologies, optimizing performance and supporting various projects to reduce development time and costs[172]. Industry Position and Recognition - The company has been recognized as a "Top 30 National Cultural Enterprises" for two consecutive years from 2020 to 2021[146]. - The company has been included in various indices such as the CSI 500 Index and MSCI China Index, reflecting its strong market position[146]. - The company has received multiple awards, including being named one of the "Top 50 Cultural and Tourism Enterprises" in China in 2020[150]. User Experience and Feedback - The company emphasizes the importance of user experience and has established multiple communication channels to better understand player needs[182]. - The company organizes annual player competitions and events to enhance player engagement and gather feedback for game improvements[182]. - The company has a strong user behavior analysis system that continuously tracks and optimizes game design based on player data[198].

Financial Performance - The company's operating revenue for Q3 2021 reached ¥1,098,003,797.57, representing a year-on-year increase of 71.45%[8] - The net profit attributable to shareholders for Q3 2021 was ¥304,675,420.63, an increase of 24.54% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2021 was ¥297,275,298.83, reflecting a growth of 45.44% year-on-year[8] - Operating revenue for the period reached ¥3,485,256,009.13, a 70.05% increase compared to the previous year, driven by new game launches[31] - Net profit for the first three quarters of 2021 was ¥1,435,454,162.77, compared to ¥996,348,982.73 in 2020, representing a growth of 43.9%[54] - The total comprehensive income for the first three quarters of 2021 reached ¥1,433,731,130.47, compared to ¥991,819,625.84 in the same period of 2020, representing an increase of approximately 44.7%[57] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to ¥6,534,957,223.25, which is a 21.29% increase from the end of the previous year[11] - The company's total liabilities as of September 30, 2021, amounted to ¥1,867,839,957.08, an increase from ¥1,139,971,952.44 at the end of 2020[49] - The total equity attributable to shareholders reached ¥4,241,908,661.12 as of September 30, 2021, compared to ¥3,802,961,389.06 at the end of 2020, indicating a growth of 11.6%[49] - The company's total assets as of September 30, 2021, were ¥6,534,957,223.25, up from ¥5,387,665,710.80 at the end of 2020, indicating a growth of 21.3%[49] Cash Flow - The company reported a net cash flow from operating activities of ¥1,731,388,588.48 for the year-to-date, an increase of 63.16% compared to the previous year[8] - The net cash flow from operating activities for the first three quarters of 2021 was ¥1,731,388,588.48, up from ¥1,061,135,179.11 in 2020, indicating a growth of about 63.0%[61] - The company's cash and cash equivalents as of September 30, 2021, amount to ¥2,467,946,873.17, an increase from ¥2,143,710,866.97 at the end of 2020[40] - The total cash and cash equivalents at the end of the period in 2021 was ¥2,465,288,655.87, compared to ¥1,368,303,438.22 at the end of 2020, showing an increase of about 80.4%[63] Research and Development - The company increased its R&D investment significantly compared to the previous year, impacting short-term financial profits[15] - Research and development expenses for the first three quarters of 2021 were ¥477,433,609.84, up from ¥296,470,265.63 in 2020, marking a 61.0% increase[51] Shareholder Information - Total number of common stock shareholders at the end of the reporting period is 16,689[35] - The largest shareholder, Lu Hongyan, holds 21,629,475 shares, accounting for 30.10% of total shares[35] Game Development and Revenue - The company launched new self-developed games such as "One Thought of Immortality," contributing significantly to revenue growth[11] - Accounts receivable increased by 108.93% to ¥195,483,733.91 due to increased revenue from newly launched and existing games[23] - Operating costs increased by 92.68% to ¥598,128,281.25, reflecting revenue growth and associated costs with new games[31] - Sales expenses surged by 299.29% to ¥835,040,076.12 due to significant marketing investments for new game launches[31] Investment and Income - Investment income rose by 273.58% to ¥359,740,916.32 from the disposal of equity stakes[31] - The company recognized a gain from the transfer of part of its equity in Xiamen Qingci Digital Technology Co., contributing approximately ¥166,878,200 to net profit[15] Audit and Compliance - There are no applicable audit opinions for the quarterly financial statements, indicating a standard reporting process[39] - The company has not reported any significant changes in shareholder relationships or actions during the reporting period[39]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2021, reflecting a year-on-year increase of 15%[2] - The company reported a revenue of 5 million for the first half of 2021, reflecting a growth of 20% compared to the same period last year[21] - The company's operating revenue for the first half of 2021 reached ¥2,387,252,211.56, representing a 69.41% increase compared to ¥1,409,164,747.82 in the same period last year[30] - Net profit attributable to shareholders was ¥900,828,775.96, up 63.77% from ¥550,052,054.21 year-on-year[30] - The net profit after deducting non-recurring gains and losses was ¥705,152,640.59, reflecting a 41.40% increase from ¥498,700,263.67 in the previous year[30] - The net cash flow from operating activities was ¥1,032,036,060.25, a 29.34% increase compared to ¥797,914,998.48 in the same period last year[30] - The company's total assets increased by 13.12% to ¥6,094,494,990.23 from ¥5,387,665,710.80 at the end of the previous year[30] - The net assets attributable to shareholders rose by 3.40% to ¥3,932,314,711.39 from ¥3,802,961,389.06 at the end of the previous year[30] - Basic earnings per share for the first half of 2021 were ¥12.54, a 63.49% increase from ¥7.67 in the same period last year[34] - The company achieved a revenue of 2.387 billion yuan, representing a year-on-year growth of 29% due to the stable operation of "Wandao" and "Wandao Mobile" as well as the strong performance of new game "Yinian Xiaoyao"[128] User Engagement and Growth - User data showed an increase in active users, with a growth rate of 20% compared to the same period last year[2] - The Daily Active Users (DAU) for the mobile game "问道手游" reached 1 million, indicating a 15% increase year-over-year[19] - The overall user retention rate improved to 75%, up from 70% in the previous year, showcasing enhanced user engagement strategies[21] - As of June 30, 2021, the cumulative registered users of "Wandao Mobile" exceeded 48 million, with an average ranking of 19th on the App Store game bestseller list in the first half of 2021, peaking at 7th[93] - The new simulation casual game launched on June 1, 2021, achieved over 7 million new users within 12 hours and over 1 million concurrent users, without using paid user acquisition methods[95] - The idle game "A Thought of Immortality," launched on February 1, 2021, achieved an average ranking of 11th on the App Store game bestseller list in the first half of 2021, peaking at 5th, and received over 210,000 five-star reviews[96] - The PC version of "Gui Gu Ba Huang," launched on January 27, 2021, topped the Steam global bestseller list multiple times, with over 180,000 concurrent users and a cumulative registered user base exceeding 19 million as of June 30, 2021[97] - "Mole Manor" has surpassed 30 million registered users, while "Incredible Maze" has over 19 million, and "Dungeon Castle 2: Dark Awakening" (Android version) has over 9 million registered users[112] Market Strategy and Expansion - The company provided a forward-looking guidance, expecting a revenue growth of 10% to 15% for the second half of 2021[2] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition by the end of 2022[21] - The company is focusing on market expansion, targeting a 25% increase in market share in the gaming sector over the next year[2] - The company is exploring acquisition opportunities in the gaming sector to bolster its market position and expand its offerings[21] - The company has been actively involved in cultural and technological innovation projects, receiving support from government initiatives[48] - The company aims to continue its growth trajectory by leveraging its strong IP and expanding its market presence in the gaming industry[41] Research and Development - Research and development investments increased by 30% in the first half of 2021, aimed at enhancing technology capabilities[2] - The company's R&D expenses for the first half of 2021 were RMB 325 million, which accounted for 13.61% of its operating revenue[62] - The company has a strong R&D team with 476 personnel, representing 58.40% of the total workforce[62] - The company has developed a technology center focused on researching common and cutting-edge technologies in game development, aiming to enhance development efficiency and product quality[87] - The company has established a comprehensive big data system for game operations, enabling real-time monitoring and analysis of user behavior data, which enhances market responsiveness[115] - The company has developed predictive tools for retention rate, LTV, DAU, and revenue to optimize marketing strategies and improve operational efficiency[117] Product Development and Innovation - New product launches are anticipated to contribute an additional RMB 300 million in revenue by the end of 2021[2] - New product launches are expected to contribute an additional 10 million in revenue for the next fiscal year[21] - The company launched new games such as "Yin Nian Xiao Yao" and "Gui Gu Ba Huang (PC version)", contributing to revenue growth[31] - The company focuses on the creative planning, development, and commercialization of online games, aiming to provide "original, high-quality, and green" games[41] - The company has expanded its product matrix and enhanced its technological research and development capabilities over the years[42] - The gaming portfolio includes a diverse range of genres, reflecting the company's commitment to innovation and quality in game development[164] Technology and Infrastructure - The company implemented gravity sensor-based anti-cheat technology in "Wandao Mobile," effectively eliminating the impact of cheating tools during gameplay[71] - A distributed server architecture was introduced, allowing for dynamic adjustment of server lines to support up to 10,000 concurrent users without compromising data integrity[71] - The introduction of a high-concurrency game server framework enhanced server processing capabilities and reduced network latency, improving overall gaming experience[71] - The implementation of a Gamma space PBR linear rendering technique improved game quality while maintaining device compatibility[74] - The introduction of a new WebP image compression method has reduced client storage space by approximately 20%[76] Marketing and Brand Engagement - The company emphasizes user experience and has organized numerous online and offline events to engage with players, including the annual "Wandao Mobile" national PK competition since 2017[101] - The company has successfully implemented targeted advertising campaigns across platforms like Weibo, Douyin, and Tencent Ads, leading to rapid player growth during product launches[104] - The company has engaged well-known personalities as brand ambassadors, such as Zhang Ruoyun for "Wandao Mobile" and Song Zuer for "Incredible Maze," enhancing brand recognition[105] - The company has received recognition from major platforms like App Store and TapTap, with several games featured in their recommended lists, boosting visibility and downloads[107] - The company has leveraged user-generated content (UGC) and community engagement to enhance marketing effectiveness and player retention[110] Risk Management - Risk factors related to market volatility and industry competition were highlighted, advising investors to remain cautious[6] - The board confirmed that there are no non-operational fund occupations by controlling shareholders[6]

Financial Performance - Operating revenue grew by 51.09% to CNY 1,117,723,072.88 year-on-year, driven by new game launches such as "A Thought on Immortality"[13] - Net profit attributable to shareholders increased by 13.36% to CNY 365,238,068.35, with a lower growth rate than revenue due to high marketing expenses for new game launches[13] - The company reported a net profit excluding non-recurring gains and losses of CNY 354,898,920.41, a 20.42% increase year-on-year[13] - Basic earnings per share rose by 12.89% to CNY 5.08, while diluted earnings per share increased by 13.14% to CNY 5.08[13] - Total revenue for Q1 2021 reached ¥1,117,723,072.88, a 50.9% increase from ¥739,794,352.59 in Q1 2020[49] - Operating profit for Q1 2021 was ¥542,707,101.44, compared to ¥497,521,387.89 in Q1 2020, reflecting an 9.1% increase[49] - Net profit attributable to shareholders for Q1 2021 was ¥365,238,068.35, up from ¥322,195,900.73 in Q1 2020, representing a 13.4% growth[51] Assets and Liabilities - Total assets increased by 13.74% to CNY 6,127,708,373.82 compared to the end of the previous year[13] - Total liabilities increased to ¥1,423,910,330.85 as of March 31, 2021, compared to ¥1,139,971,952.44 on December 31, 2020, representing a growth of approximately 24.9%[38] - Total equity attributable to shareholders rose to ¥4,179,634,173.81 as of March 31, 2021, up from ¥3,802,961,389.06 at the end of 2020, indicating an increase of about 9.9%[38] - Current assets totaled ¥1,139,130,100.39 as of March 31, 2021, a decrease from ¥1,512,046,470.37 on December 31, 2020, reflecting a decline of approximately 24.6%[41] - The total non-current liabilities decreased to ¥166,327,224.00 as of March 31, 2021, from ¥168,081,518.22 on December 31, 2020, indicating a slight reduction of approximately 1.0%[38] Cash Flow - Cash flow from operating activities decreased by 10.10% to CNY 327,582,010.07, primarily due to increased marketing and revenue-sharing expenses for new games[13] - Cash inflows from operating activities in Q1 2021 totaled CNY 941,516,506.35, an increase of 31.3% compared to CNY 717,469,617.18 in Q1 2020[60] - The net cash flow from operating activities for Q1 2021 was CNY 327,582,010.07, a decrease of 10.1% from CNY 364,392,864.47 in Q1 2020[60] - Cash inflows from investment activities in Q1 2021 amounted to CNY 1,088,349,613.44, down 25% from CNY 1,450,844,478.44 in Q1 2020[60] - The net cash flow from investment activities was negative CNY 564,836,016.72 in Q1 2021, compared to negative CNY 34,444,965.11 in Q1 2020[60] Expenses - Operating costs surged by 193.34% to ¥187,827,752.16, primarily due to increased payments to external developers[25] - Sales expenses increased by 409.03% to ¥263,557,230.75, attributed to significant advertising investments for the new game "Yinian Xiaoyao" and ongoing marketing for "Wendao Mobile Game"[25] - Research and development expenses increased to ¥146,957,617.19 in Q1 2021, up from ¥107,227,691.02 in Q1 2020, indicating a 37.0% rise[49] - The company’s tax expenses for Q1 2021 were ¥98,438,653.26, compared to ¥73,932,910.39 in Q1 2020, an increase of 33.1%[49] Shareholder Information - The number of shareholders at the end of the reporting period was 24,524, with the largest shareholder holding 30.10% of the shares[19] - The company's retained earnings increased to ¥2,931,077,467.41 as of March 31, 2021, compared to ¥2,565,839,399.06 at the end of 2020, reflecting a growth of about 14.3%[38] Investments - Long-term equity investments increased by 89.93% to ¥1,035,691,748.58 compared to the previous year-end due to new equity investments[25] - Investment income grew by 479.48% to ¥70,816,894.65, reflecting higher equity method investment income from joint ventures[25]

Financial Performance - Revenue for the last quarter was reported at $150 million, marking a 15% increase compared to the previous quarter[23]. - The company's operating revenue for 2020 was CNY 2,742,292,402.80, representing a 26.35% increase from CNY 2,170,371,924.09 in 2019[33]. - The net profit attributable to shareholders for 2020 was CNY 1,046,406,050.64, a 29.32% increase compared to CNY 809,190,139.25 in 2019[33]. - The net cash flow from operating activities for 2020 was CNY 1,533,014,623.10, up 18.19% from CNY 1,297,052,995.40 in 2019[33]. - The company's total assets at the end of 2020 were CNY 5,387,665,710.80, a 23.32% increase from CNY 4,368,812,646.36 at the end of 2019[33]. - The net assets attributable to shareholders at the end of 2020 were CNY 3,802,961,389.06, reflecting a 23.84% increase from CNY 3,070,989,468.20 at the end of 2019[33]. - The basic earnings per share for 2020 was CNY 14.58, which is a 29.26% increase from CNY 11.28 in 2019[34]. - The weighted average return on net assets for 2020 was 31.03%, an increase of 2.89 percentage points from 28.14% in 2019[34]. - The net profit attributable to shareholders for Q4 2020 was CNY 251,718,951.22, with a total operating revenue of CNY 692,701,514.17[38]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 120.00 RMB per 10 shares to all shareholders, based on the total share capital on the dividend record date[6]. - The company has not proposed any capital reserve conversion into share capital or other forms of profit distribution[6]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[5]. - The financial report is guaranteed to be true, accurate, and complete by the company's responsible persons[5]. - The board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[5]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[7]. - The company has not violated decision-making procedures for external guarantees[8]. Market and Industry Insights - The report includes detailed descriptions of industry and market risks that the company may face in the future[9]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements made in the report[7]. - The gaming industry in China is benefiting from advancements in 5G and cloud computing technologies, which are expected to enhance gaming experiences and product stability[64]. - The regulatory environment for the gaming industry in China is improving, with a focus on high-quality original games and increased awareness of intellectual property protection[65]. - In 2020, the Chinese gaming market achieved actual sales revenue of RMB 278.69 billion, representing a year-on-year growth of 20.71%[63]. - The mobile gaming market accounted for RMB 209.68 billion, which is 75.24% of the total market revenue[63]. - The number of mobile game users in China reached 654 million in 2020, with a year-on-year growth of 4.84%[64]. Game Development and Launches - The company plans to launch three new games in the upcoming year, aiming to capture a larger market share in the mobile gaming sector[20]. - The launch of the new game "Quest of Legends" is anticipated to drive user engagement, with a projected 500,000 downloads in the first month[21]. - The company launched several new games in 2020, including "Magic Abyss" and "Immortal Journey," contributing to increased marketing expenses[33]. - The company has established a robust training and incentive system to cultivate professional talent and ensure the stability of its core workforce[121]. - The company has launched several new games, including "Yinian Xiaoyao" and "Yihua Zhi Di," while continuing to upgrade existing titles to enhance player experience and extend product lifecycle[124]. User Engagement and Marketing Strategies - The company conducts user engagement activities, such as annual PK competitions for "Wandao Mobile," to foster community interaction and gather player feedback[99]. - Advertising campaigns are executed through platforms like Douyin and Tencent Ads, featuring celebrity endorsements to boost player acquisition during game launches[100]. - The company employs word-of-mouth marketing strategies through various channels to enhance user engagement and product awareness[105]. - The company has built a user self-service system to enhance customer service efficiency and improve player experience[120]. Research and Development - The company has allocated $10 million for research and development of augmented reality (AR) technologies over the next two years[20]. - As of December 31, 2020, the company had 439 R&D personnel, accounting for 58.46% of the total workforce[67]. - R&D expenses for 2018, 2019, and 2020 were CNY 287 million, CNY 332 million, and CNY 431 million, representing 17.35%, 15.31%, and 15.70% of revenue respectively[67]. - The company has developed various game technology innovations, including a cross-platform operation interface and anti-cheat mechanisms[72]. - Continuous high R&D investment provides a solid foundation for the company's independent innovation[67]. Game Performance and User Statistics - The self-developed game "Wandao" has a peak concurrent user (PCU) close to 1 million since its commercialization, and "Wandao Mobile" has accumulated over 45 million registered users as of December 31, 2020[107]. - The game "Unfathomable Maze" has over 18 million registered users, while "Dungeon Castle 2: Dark Awakening" has over 8.5 million registered users, and "Funny Battle" has over 14 million registered users as of December 31, 2020[107]. - "Wandao Mobile" has accumulated over 45 million registered users as of December 31, 2020, and has maintained a strong presence in the App Store, averaging a ranking of 26th and peaking at 6th in the games sales chart[130]. Strategic Partnerships and Acquisitions - A new partnership with a leading technology firm is expected to enhance the company's AI capabilities, which will be integrated into future game developments[21]. - The company is exploring potential acquisitions to strengthen its portfolio, particularly in the mobile gaming space[22]. - The company has invested in several gaming companies, including a 20% stake in Yongshi Network, which reported a net profit of 30.56 million yuan in the first half of 2020[195]. Awards and Recognition - The company has been recognized as a key software enterprise and has been included in various prestigious lists, such as the "Top 30 Cultural Enterprises in China" and "Top 100 Internet Enterprises" from 2017 to 2020[46]. - The company has been awarded numerous honors, including being named a "Top 500 Private Enterprises in China" by Hurun Research Institute in 2020[51]. - "问道手游" received multiple industry awards, including the "Best Popular Game" at the 2020 vivo Developer Conference and the "Best Classic Game" at the 2020 OPPO Developer Conference[133].

ri 吉比特 厦门吉比特网络技术股份有限公司 G-bits Network Technology ( Xiamen ) Co.,Ltd. 2020 年第三季度报告 公司代码：603444 公司简称：吉比特 厦门吉比特网络技术股份有限公司 2020 年第三季度报告 2020 年第三季度报告 目录 | --- | --- | |-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | |----------------|-------| | | | | 重要提示 . | | | 公司基本情况 . | | | 重要事项 | | | 附录 | | 2020 年第三季度报告 单位：元 币种：人民币 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人卢竑岩、主管会计工作负责人林佳金及会计机 ...

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2020, representing a year-on-year increase of 15%[2]. - Net profit for the same period was RMB 300 million, with a profit margin of 25%[2]. - The gross margin for the first half of 2020 was reported at 45%, a slight decrease from 48% in the same period last year[21]. - The company has set a performance guidance of 2.5 billion RMB in revenue for the full year 2020, which would represent a 12% increase compared to 2019[21]. - The net profit attributable to shareholders of the listed company was ¥550,052,054.21, an increase of 18.17% from ¥465,476,737.15 in the previous year[33]. - The net cash flow from operating activities reached ¥797,914,998.48, marking a 37.22% increase from ¥581,482,383.76 in the same period last year[33]. - The basic earnings per share for the first half of 2020 was ¥7.67, up 18.36% from ¥6.48 in the previous year[34]. - Future guidance indicates expected revenue growth of 10-15% for the second half of 2020[2]. User Engagement and Market Expansion - User engagement metrics showed a 20% increase in daily active users compared to the previous year[2]. - The number of registered users reached 50 million, with a daily active user (DAU) count of 5 million, indicating a 10% growth in user engagement compared to the previous period[21]. - Market expansion efforts are focused on Southeast Asia, with a targeted increase in user base by 25% in that region[2]. - The company is expanding its market presence in Southeast Asia, targeting a 20% increase in revenue from this region by 2021[21]. Research and Development - Research and development expenses increased by 30% to support new product development initiatives[2]. - Research and development expenses increased by 25% year-over-year, reflecting the company's commitment to innovation and new technology[21]. - The company has established a technology center focusing on research of general and cutting-edge technologies in game development, aiming to enhance R&D efficiency and quality[82]. - The company has accumulated experience in operating Roguelike games, leveraging player behavior data for better game management[89]. - The company has developed a loss recovery optimization mechanism to track and recover lost in-game items and currency, addressing issues related to account theft[82]. Product Development and Innovation - The company plans to launch two new gaming titles in Q3 2020, aiming to capture a larger market share[2]. - The company plans to launch three new mobile games by the end of 2020, aiming to capture a larger market share in the mobile gaming sector[21]. - The company is exploring potential acquisitions to enhance its technology capabilities and expand its product offerings[2]. - The company is exploring potential mergers and acquisitions to enhance its portfolio and market position, with a focus on companies in the gaming industry[21]. - The company has successfully launched new games, contributing to the increase in revenue, despite some losses from investments in new game promotions[33]. Technology and Security - The company has developed a distributed server implementation method that can support thousands of users in the same game world, enhancing user capacity without affecting player data[67]. - The company has implemented a server verification technology that uses asymmetric encryption to ensure connections are made to official servers, enhancing security against private servers[67]. - The introduction of KCP protocol has reduced network latency and supports forward error correction technology, enhancing the gaming experience[69]. - The implementation of PBR linear rendering in Gamma space improves game quality while maintaining device compatibility[69]. - The company has invested in a player challenge verification module to combat offline cheating, allowing for progressive penalties and player appeals[67]. Marketing and Community Engagement - The company has engaged in IP literature development, including the publication of the official novel "Wandao: Gun Out of Heart," to enrich the game narrative and enhance player immersion[96]. - The company has conducted annual nationwide PK competitions for "Wandao Mobile," attracting a large number of players and enhancing community engagement[95]. - The company actively engages in marketing campaigns during major updates to boost user engagement and retention[127]. - The company has collaborated with well-known platforms for game promotion, resulting in significant user attention and downloads[99]. Awards and Recognition - The company has been recognized in various rankings, including the "Top 100 Internet Companies in China" and the "Top 500 Private Enterprises in China" by Hurun[41]. - "Wandao Mobile" has received multiple industry awards, including "Best Classic Game" from Meizu in January 2020[130]. - "Uncharted Maze" received numerous accolades, including the "Best Original Mobile Game Award" at the 2017 Golden Wing Awards[138]. Overseas Expansion - The company is focusing on expanding its overseas market presence by enhancing localization efforts and exploring independent game categories[188]. - The overseas business team has successfully launched several titles, including "Fury Survivor," which has accumulated over 4.3 million registered users as of June 30, 2020[189]. - The company has secured overseas publishing rights for several products, including "Ancient Warfare" and "Cute Knight," with some in the product adjustment phase[190].