Dividend and Financial Reporting - The company plans to distribute a cash dividend of 50.00 RMB per 10 shares to all shareholders, based on the total share capital on the dividend record date[7]. - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[6]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[9]. - The company has not violated decision-making procedures for external guarantees[9]. - The financial report is guaranteed to be true, accurate, and complete by the company's responsible personnel[6]. - The report indicates that the company is committed to maintaining transparency and accountability in its financial disclosures[4]. Revenue and Growth - The company reported a total revenue of 1.2 billion CNY for the fiscal year, representing a year-over-year growth of 15%[29]. - The company expects a revenue guidance of 1.5 billion CNY for the next fiscal year, indicating a projected growth of 25%[29]. - New product launches are anticipated to contribute an additional 300 million CNY in revenue, with a focus on mobile gaming[29]. - The average revenue per user (ARPU) increased to 25 CNY, up from 20 CNY last year, reflecting improved monetization strategies[29]. - The company reported a long-term equity investment impairment provision of ¥68,503,900, which impacted the net profit growth rate[40]. User Engagement and Market Expansion - The number of registered users reached 50 million, an increase of 20% compared to the previous year[29]. - Peak concurrent users (PCU) reached 1 million during the latest game launch, a 30% increase from the previous launch[29]. - Market expansion efforts include entering Southeast Asian markets, targeting a 10% market share within two years[29]. - The company aims to enhance user engagement through community-driven platforms, leveraging partnerships with key opinion leaders (KOLs)[29]. Research and Development - The company is investing 100 million CNY in R&D for new technologies, particularly in augmented reality and virtual reality gaming[29]. - The number of R&D personnel increased to 360 in 2019, reflecting a growth rate of 21.21%[78]. - The company emphasizes a "premium" strategy, focusing on product quality and customer service, which has led to a strong reputation and popularity for its games[75]. - The company has implemented a stable R&D investment strategy, balancing business scale and R&D risks to improve efficiency and output[80]. Game Development and Technology - The company has successfully launched multiple games, including "Wandao Mobile," leveraging its strong user base and IP value[55]. - The company has developed a network game anti-cheat recognition method that improves the efficiency of identifying cheating accounts through data collection and neural network algorithms[84]. - The introduction of a general high-concurrency game server framework has improved server processing capabilities and reduced network latency, enhancing user experience[88]. - The company has launched several upgrades for existing products, maintaining player engagement through continuous content updates[80]. Marketing and Community Engagement - The company employs various marketing strategies, including hiring celebrities as brand ambassadors to enhance user acceptance and brand value[113]. - The company conducts annual nationwide PK competitions for "Wandao Mobile," attracting a large number of participants and fostering community engagement[113]. - The company actively promotes its games through platforms like Douyin and Tencent Ads, focusing on short videos related to game content and popular topics[115]. Financial Performance and Metrics - The net profit attributable to shareholders was ¥809,190,139.25, reflecting an 11.93% growth from ¥722,971,754.93 in the previous year[39]. - The net cash flow from operating activities amounted to ¥1,297,052,995.40, up 43.38% from ¥904,606,052.40 in 2018[39]. - The company's total assets at the end of 2019 were ¥4,368,812,646.36, a 9.00% increase from ¥4,008,214,957.17 at the end of 2018[39]. - The basic earnings per share for 2019 was ¥11.28, an increase of 11.46% from ¥10.12 in 2018[44]. Game Performance and User Metrics - The game "Wandao Mobile" achieved a revenue of 157,622.40 million in 2019, up from 119,561.43 million in 2018, representing a year-over-year growth of 31.87%[169]. - "Wandao Mobile" reported a gross profit of 152,582.57 million in 2019, with a gross profit margin of 77.65%, compared to 75.92% in 2018[169]. - The average monthly active user count for "Wandao Mobile" was 41.92 million, with an ARPU of 108.56 CNY[148]. - The game "Uncharted Maze," launched in December 2016, has surpassed 17 million registered users by December 31, 2019[126].

Financial Performance - Net profit attributable to shareholders increased by 50.95% to CNY 322,195,900.73 year-on-year[10] - Operating revenue rose by 46.28% to CNY 739,794,352.59 compared to the same period last year[10] - Basic earnings per share increased by 50.50% to CNY 4.50 compared to the same period last year[10] - The company reported a net profit excluding non-recurring gains and losses of CNY 294,711,578.49, up 47.24% year-on-year[10] - Operating profit for Q1 2020 was ¥497,521,387.89, up 57.0% from ¥316,752,986.82 in Q1 2019[43] - The company reported a comprehensive income total of ¥422,194,373.89 for Q1 2020, compared to ¥269,853,737.42 in Q1 2019, marking a 56.4% increase[45] Cash Flow - Net cash flow from operating activities increased by 64.41% to CNY 364,392,864.47 year-on-year[10] - Cash flow from operating activities increased by 64.41% to ¥364,392,864.47, attributed to higher revenue and improved collections[21] - The net cash flow from operating activities for Q1 2020 was -13,005,729.04 RMB, a significant decline from 48,158,912.21 RMB in Q1 2019[56] - The company experienced a net cash outflow from investing activities of ¥34,444,965.11, an improvement from a net outflow of ¥59,279,388.21 in Q1 2019[51] - The net cash flow from investment activities improved to 20,637,474.66 RMB in Q1 2020, compared to -63,033,608.23 RMB in Q1 2019[59] Assets and Liabilities - Total assets increased by 11.52% to CNY 4,872,146,923.62 compared to the end of the previous year[10] - Cash and cash equivalents increased by 41.56% to CNY 1,137,704,650.31 due to increased operating income and collections[17] - Total liabilities reached ¥1,012,298,218.55 as of March 31, 2020, compared to ¥933,699,176.47 as of December 31, 2019, marking a rise of around 8.4%[32] - Current liabilities amounted to ¥883,072,287.28 as of March 31, 2020, up from ¥803,167,084.77 as of December 31, 2019, indicating an increase of approximately 9.3%[32] - The company reported a decrease in other current liabilities by 87.40% to ¥28,945,500.25, due to reclassification of certain balances to contract liabilities under new revenue standards[20] Shareholder Information - The total number of shareholders reached 10,743 by the end of the reporting period[13] - The largest shareholder, Lu Hongyan, holds 30.10% of the shares, totaling 21,629,475 shares[13] Research and Development - Research and development expenses rose by 52.72% to ¥107,227,691.02, in line with increased performance and corresponding bonuses for the R&D department[20] - Research and development expenses in Q1 2020 totaled ¥107,227,691.02, an increase of 52.7% compared to ¥70,210,957.71 in Q1 2019[43] Tax and Other Expenses - The company recognized a 61.32% increase in income tax expenses, amounting to ¥73,932,910.39, due to improved performance[21] - The company reported a tax expense of ¥73,932,910.39 for Q1 2020, compared to ¥45,831,281.31 in Q1 2019, reflecting an increase of 61.3%[43] Investment and Fair Value - The company reported a 110.47% increase in fair value changes of investments, totaling ¥18,615,185.17, reflecting gains from equity investments[21] - The company recorded investment income of ¥3,521,811.15 in Q1 2020, significantly up from ¥933,867.93 in Q1 2019[47]

Financial Performance - The company reported a total revenue of 1.2 billion CNY for the fiscal year, representing a year-over-year growth of 15%[29]. - The company's operating revenue for 2019 was CNY 2,170,371,924.09, representing a 31.16% increase compared to CNY 1,654,695,046.58 in 2018[38]. - The net profit attributable to shareholders for 2019 was CNY 809,190,139.25, an increase of 11.93% from CNY 722,971,754.93 in 2018[38]. - The net cash flow from operating activities for 2019 was CNY 1,297,052,995.40, reflecting a 43.38% increase from CNY 904,606,052.40 in 2018[38]. - The total assets at the end of 2019 were CNY 4,368,812,646.36, a 9.00% increase from CNY 4,008,214,957.17 at the end of 2018[38]. - The basic earnings per share for 2019 was CNY 11.28, up 11.46% from CNY 10.12 in 2018[39]. - The weighted average return on equity for 2019 was 28.14%, slightly increasing from 28.05% in 2018[39]. - The company reported a net profit of CNY 139,253,550.58 in Q4 2019, which was a decrease due to a provision for impairment of CNY 75,038,826.53[45]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 50.00 RMB per 10 shares to all shareholders, based on the total share capital on the dividend record date[7]. - The company has not proposed any capital reserve transfers to increase share capital in the profit distribution plan, focusing solely on cash dividends[7]. Governance and Compliance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[6]. - There are no non-operating fund occupations by controlling shareholders or related parties, ensuring financial integrity[8]. - The company has not engaged in any violations of decision-making procedures regarding external guarantees, maintaining compliance with regulations[8]. - The board of directors and supervisory board members were all present at the meeting, indicating strong governance and oversight[5]. - The company emphasizes the importance of accurate and complete financial reporting, with key management affirming the integrity of the annual report[6]. Market and Growth Prospects - The company expects a revenue guidance of 1.5 billion CNY for the next fiscal year, indicating a projected growth of 25%[29]. - New product launches are anticipated to contribute an additional 200 million CNY in revenue over the next year[29]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year[29]. - The company has outlined potential risks in its future development, including industry and market risks, which investors should be aware of[8]. Research and Development - Research and development expenses increased by 30% to 150 million CNY, focusing on enhancing mobile gaming technology[29]. - The company invested a total of RMB 863 million in R&D from 2017 to 2019, which represented 16.94%, 17.35%, and 15.31% of its operating revenue respectively[72]. - The company has a dedicated R&D team of 360 members, constituting 54.3% of its total workforce[72]. - The company continues to explore new R&D collaboration models to improve product development efficiency and quality through technical guidance and engineering support[98]. Game Development and Operations - The company operates primarily in the online gaming sector, focusing on original, high-quality games with a strong cultural and artistic value[52]. - The company has established a game operation platform, Thunder Game, to enhance its online game promotion and operation capabilities[53]. - The company has successfully launched multiple games, including "Wandao Mobile," "Greedy Cave 2," and "Fury Survivor," showcasing a diverse portfolio and strong operational capabilities[130]. - The company has established a comprehensive game big data system to track user behavior, including registration, login, recharge, and consumption[111]. - The company has developed predictive tools for retention rate, LTV, DAU, and revenue to enhance marketing efficiency[115]. User Engagement and Community - The company emphasizes a player-centric design philosophy, continuously optimizing game interactions based on user needs and preferences[116]. - The company actively engages with players through online and offline events, gathering feedback to inform game development and marketing strategies[123]. - The company has established a high-quality customer service team, utilizing multiple channels for player support, which has improved response times and overall player experience[122]. - The company has implemented a self-service system and smart customer service technology to enhance service efficiency and player satisfaction[122]. Awards and Recognition - The company has been recognized as one of the "Top 100 Software and Information Technology Service Enterprises" in 2019 and has been included in the "Top 100 Internet Enterprises in China" for three consecutive years from 2017 to 2019[52]. - "Wandao Mobile" won the "Sixth Chinese Excellent Publication Award" and "Excellent Software Product" title from Xiamen Economic and Information Technology Bureau[137]. - "Wandao Mobile" has received multiple industry awards, including "Best Classic Game" from Meizu and "Popular Game of the Year" from the Fifth Black Stone Award[137]. Upcoming Releases - The company has several upcoming game releases, including "Giant Knight Corps," "Immortal Journey: Rebirth," and "Spirit Magic Tower," all expected to launch in the second half of 2020[188][191][192]. - "Oil Tycoon," a simulation game based on oil extraction, has received its license and is expected to launch within 2020[195]. - "Craft Wood," an original puzzle game themed around traditional joinery, has also obtained its license and is anticipated to be released in the first half of 2020[198].

Financial Performance - Operating revenue for the first nine months was CNY 1,555,138,977.50, representing a year-on-year growth of 34.07%[13] - Net profit attributable to shareholders for the first nine months was CNY 669,936,588.67, up 32.17% from the same period last year[13] - Basic earnings per share for the reporting period was CNY 9.34, reflecting a growth of 31.73% year-on-year[13] - The weighted average return on equity increased by 2.89 percentage points to 23.30% compared to the previous year[13] - The company reported a significant increase in long-term equity investments, which rose by 133.09% to CNY 378,276,619.33, attributed to new equity investments[24] - The company’s basic earnings per share increased by 31.73% to CNY 9.34, reflecting higher net profits[29] - The net profit for Q3 2019 was CNY 262,305,435.77, an increase from CNY 217,347,512.57 in Q3 2018, representing a growth of approximately 20.1%[54] - The total comprehensive income for Q3 2019 was CNY 264,710,795.52, compared to CNY 220,151,771.72 in Q3 2018, representing an increase of approximately 20.2%[57] Cash Flow - The net cash flow from operating activities for the first nine months increased by 44.42% to CNY 881,762,282.31 compared to the previous year[13] - The company’s cash flow from investing activities improved significantly, with a net inflow of CNY 102,891,223.84, compared to a net outflow of CNY 660,470,282.12 in the previous year[27] - Cash inflows from operating activities reached CNY 1,815,120,860.42, up from CNY 1,234,472,621.89 year-over-year, indicating a growth of approximately 47.1%[70] - The net cash flow from investment activities was CNY 102,891,223.84, a turnaround from a negative cash flow of CNY -660,470,282.12 in the previous period[70] - The ending cash and cash equivalents balance was CNY 664,242,068.38, up from CNY 467,040,688.51, reflecting a positive cash position[72] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 4,068,025,571.78, an increase of 1.49% compared to the end of the previous year[13] - The company’s total assets under other non-current financial assets reached CNY 431,380,035.75, following the reclassification of certain equity investments[24] - Total liabilities decreased to approximately ¥800.90 million from ¥877.12 million, a reduction of 8.7%[41] - The company reported a significant increase in accounts receivable, totaling ¥23,091,646.67, compared to ¥70,270,201.87 previously[46] - The company’s total liabilities included approximately $63.20 million in long-term borrowings[85] Shareholder Information - The company reported a total of 13,346 shareholders at the end of the reporting period[20] - The largest shareholder, Lu Hongyan, holds 30.09% of the shares, amounting to 21,629,475 shares[20] - Shareholders' equity increased to approximately ¥3.27 billion, up from ¥3.13 billion, indicating a growth of 4.5%[41] Government and Non-Operating Income - The company recognized government subsidies amounting to CNY 19,409,775.28 for the first nine months[17] - Non-operating income for the first nine months totaled CNY 36,556,655.79, with significant contributions from entrusted investment management gains[17] Expenses - Sales expenses surged by 110.67% to CNY 172,483,791.36, primarily due to increased marketing costs for new games[27] - R&D expenses in Q3 2019 amounted to ¥77,762,254.64, an increase of 18.5% compared to ¥65,474,799.97 in Q3 2018[51] - Research and development expenses for Q3 2019 were CNY 21,180,882.63, slightly higher than CNY 21,141,203.08 in Q3 2018, showing a marginal increase[62] Future Outlook - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[51]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2019, representing a year-on-year increase of 15%[3] - Net profit for the period was RMB 300 million, reflecting a growth of 10% compared to the same period last year[3] - Revenue for the first half of the year was reported at 500 million RMB, reflecting a 15% increase from the same period last year[24] - The company's operating revenue for the first half of 2019 was ¥1,070,709,493.57, representing a 37.70% increase compared to ¥777,591,657.82 in the same period last year[30] - The net profit attributable to shareholders for the first half of 2019 was ¥465,476,737.15, up 38.95% from ¥334,995,941.24 in the previous year[30] - The net cash flow from operating activities increased by 55.82% to ¥581,482,383.76, compared to ¥373,185,575.72 in the same period last year[30] - The basic earnings per share for the first half of 2019 was ¥6.48, a 38.46% increase from ¥4.68 in the previous year[30] - The company has set a revenue guidance of 1.2 billion RMB for the upcoming fiscal year, representing a 10% growth target[24] - Future guidance indicates expected revenue growth of 12% to 15% for the full year 2019[3] User Engagement and Growth - The number of active users reached 50 million, an increase of 20% year-on-year[3] - The company reported a significant increase in registered users, reaching 10 million, which represents a 25% growth year-over-year[24] - User engagement metrics have improved, with average session times increasing by 15% across all platforms[24] - As of June 30, 2019, "Wandao Mobile" has accumulated over 33 million registered users, while "Unusual Maze" has over 16 million registered users, showcasing the company's strong user base[88] - "Wandering Maze" has accumulated over 16 million registered users since its launch in December 2016[114] Market Expansion and Strategy - The company plans to launch two new games in Q3 2019, aiming to capture a larger market share[3] - The company has expanded its market into Southeast Asia, targeting a 10% revenue contribution from this region by the end of 2019[3] - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next two years[24] - The company is exploring potential acquisitions to enhance its product portfolio and market presence[3] - A strategic acquisition of a smaller gaming studio is anticipated to be finalized by Q3, which is expected to boost the company's game portfolio[24] - The company has established a comprehensive overseas game publishing system, gaining insights into player demands across multiple countries and regions[179] Research and Development - Investment in R&D increased by 25% in the first half of 2019, focusing on new technologies and game development[3] - The company invested a total of RMB 683 million in R&D from 2017 to the first half of 2019, which accounted for 16.94%, 17.35%, and 14.16% of its operating revenue respectively[55] - The company is investing 50 million RMB in research and development for new gaming technologies, aiming to enhance user experience[24] - The company’s R&D team consists of 323 members, making up 53.83% of the total workforce[55] Game Development and Innovation - The company continues to focus on the development and operation of original network games, enhancing its product structure and technological capabilities[40] - The company has developed a game character editing system recognized as an excellent software industrialization project in Fujian Province[44] - The company has implemented a distributed server architecture that can support thousands of users in a single game world, allowing for dynamic adjustments to server capacity without affecting player data[65] - The introduction of a new player challenge verification module aims to combat offline cheating by sending random challenge prompts to players, with penalties for non-compliance[65] - The company has enhanced its anti-cheat measures through the use of neural network algorithms to identify and eliminate cheating accounts based on gameplay behavior data[65] Game Performance and Recognition - The company has successfully launched multiple mobile games, including "Wandao Mobile" and "Unusual Maze," with "Wandao Mobile" achieving an average ranking of 25 and peaking at 5 on the App Store game bestseller list during the reporting period[83] - "Greedy Cave 2" achieved the highest ranking of 1st on the App Store paid game chart within its first month of launch, maintaining an average ranking of 13th[121] - "Crossing the Star Arc" reached 1st place on the App Store paid game chart and TapTap download chart on its second day post-launch, receiving multiple recommendations from App Store and TapTap[125] - The company has received multiple industry awards for its games, including "Best Chinese Game" nomination at The Game Awards 2017 for "Unusual Maze"[84] Customer Experience and Support - The company has established a high-quality customer service team to enhance user experience and quickly address player feedback[99] - The company emphasizes a player-centric design and operation philosophy, leading to a stable user base and strong profitability[103] - The company maintains a player-centric design philosophy, continuously optimizing game interactions based on user feedback and behavior analysis[94] Industry Trends and Insights - The advancement of 5G and cloud computing technologies is expected to significantly enhance the gaming experience and industry landscape[52] - In the first half of 2019, China's game market achieved actual sales revenue of RMB 114.02 billion, representing a year-on-year growth of 8.6%[48] - Mobile game sales revenue reached RMB 77.07 billion, accounting for 67.6% of the total market revenue[48] - As of June 2019, the number of mobile game users in China was 620 million, reflecting a year-on-year increase of 6.0%[52]

Financial Performance - Net profit attributable to shareholders was CNY 213,442,887.27, representing a growth of 38.87% year-on-year[11]. - Operating revenue for the period was CNY 505,745,127.66, reflecting a 33.09% increase compared to the same period last year[11]. - Basic earnings per share increased to CNY 2.99, a rise of 38.43% compared to the previous year[11]. - The weighted average return on equity rose to 7.08%, an increase of 0.64 percentage points from the previous year[11]. - The company reported a significant increase in long-term equity investments, which rose by 38.70% to ¥225,091,190.09 from ¥162,288,069.82, due to new equity investments made during the period[22]. - The company’s investment income fell by 49.37% to ¥8,411,630.51 from ¥16,614,825.80, as the new financial instrument standards affected the recognition of investment income[26]. - The company reported a gross profit margin of approximately 58.0% for Q1 2019, compared to 55.0% in Q1 2018[52]. - Total comprehensive income for Q1 2019 reached approximately ¥269.85 million, up from ¥191.13 million in Q1 2018, reflecting a growth of 41%[55]. Cash Flow - The net cash flow from operating activities was CNY 221,637,597.11, up 62.37% year-on-year[11]. - The company’s cash flow from investing activities improved by 85.24%, with a net cash outflow of ¥59,279,388.21 compared to ¥401,576,850.89 in the previous year, due to a reduction in the purchase and redemption of financial products[27]. - In Q1 2019, the company reported cash inflows from operating activities of RMB 583,449,035.39, an increase of 57.8% compared to RMB 369,647,994.58 in Q1 2018[63]. - The net cash flow from investment activities was negative at RMB -59,279,388.21 in Q1 2019, an improvement from RMB -401,576,850.89 in Q1 2018[65]. - The company reported a net increase in cash and cash equivalents of RMB 149,159,908.39 for Q1 2019, compared to a decrease of RMB -290,724,587.93 in Q1 2018[65]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 4,229,694,343.62, an increase of 5.53% compared to the end of the previous year[11]. - Total liabilities decreased to RMB 799,881,139.00 from RMB 877,120,895.74, a reduction of approximately 8.8%[42]. - The company's total equity increased to RMB 3,429,813,204.62 from RMB 3,131,094,061.43, reflecting a growth of about 9.5%[42]. - Total non-current assets reached RMB 1,721,614,048.11, up from RMB 1,548,340,800.55, indicating an increase of approximately 11.2%[39]. - The company’s inventory decreased to RMB 436,774.77 from RMB 459,209.73, a decline of about 4.8%[37]. Shareholder Information - The total number of shareholders at the end of the reporting period was 13,475[15]. - The largest shareholder, Lu Hongyan, holds 30.09% of the shares, amounting to 21,629,475 shares[15]. - The company received government subsidies amounting to CNY 5,933,387.61 during the reporting period[15]. Expenses - Sales expenses surged by 100.18% to ¥55,034,659.42, compared to ¥27,492,786.51 in the previous year, primarily due to increased marketing expenses for new games[23]. - The company experienced a 41.42% rise in operating costs, totaling ¥50,126,407.54, up from ¥35,445,605.93, as payments to external developers for new games increased[23]. - The company’s financial expenses decreased by 79.34% to ¥2,407,330.30, down from ¥11,652,054.18, due to increased interest income and reduced exchange losses[23]. Research and Development - Research and development expenses for Q1 2019 were ¥70,210,957.71, an increase of 8.9% compared to ¥64,768,677.12 in Q1 2018[52].

Financial Performance - The company reported a total revenue of 1.5 billion RMB for the fiscal year, representing a year-over-year growth of 20%[31]. - In 2018, the company's operating revenue reached ¥1,654,695,046.58, representing a 14.91% increase compared to ¥1,440,007,667.91 in 2017[38]. - The net profit attributable to shareholders was ¥722,971,754.93 in 2018, an 18.58% increase from ¥609,712,730.30 in 2017[38]. - The net cash flow from operating activities was ¥904,606,052.40, up 11.83% from ¥808,947,485.24 in 2017[38]. - The company's total assets increased by 27.50% to ¥4,008,214,957.17 at the end of 2018, compared to ¥3,143,580,718.17 at the end of 2017[38]. - The company achieved a total revenue of ¥1,654,695,046.58, representing a year-on-year growth of 14.91%[177]. - The net profit attributable to shareholders was ¥722,971,754.93, reflecting an 18.58% increase compared to the previous year[177]. - Operating costs decreased by 2.38% to ¥128,410,167.06, while sales expenses dropped by 16.76% to ¥133,716,035.30[178]. - Research and development expenses increased by 17.65% to ¥287,016,546.16, indicating a focus on innovation[178]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 100.00 RMB per 10 shares to all shareholders, based on the total share capital on the equity registration date for the 2018 profit distribution plan[12]. - The company has not proposed any capital reserve conversion to increase share capital in the profit distribution plan[12]. 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[11]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[14]. - The company has not violated decision-making procedures for external guarantees[14]. - The board of directors and senior management have confirmed the authenticity and completeness of the annual report[10]. Market and Product Development - The registered user base increased to 50 million, with a 15% increase compared to the previous year[31]. - The company expects a revenue guidance of 1.8 billion RMB for the next fiscal year, indicating a projected growth of 20%[31]. - New product launches are anticipated to contribute an additional 300 million RMB in revenue, with a focus on mobile gaming[31]. - The company is investing 200 million RMB in R&D for new technologies and game development in the upcoming year[31]. - Market expansion efforts include entering Southeast Asian markets, targeting a 10% market share within two years[31]. - The company is exploring potential acquisitions to enhance its portfolio, with a budget of 500 million RMB allocated for this purpose[31]. Risk Management - The report includes detailed descriptions of industry and market risks that the company may face in the future[14]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements in the annual report[13]. - The company has a comprehensive risk statement addressing potential future development risks in the industry[14]. Research and Development - The company has a strong independent R&D capability, which is crucial for the quality and stability of its network games[67]. - The company invested a total of 724 million CNY in R&D over the past three years, with R&D expenses as a percentage of revenue being 14.79%, 16.94%, and 17.35% respectively[69]. - As of December 31, 2018, the company had 297 R&D personnel, accounting for 53.13% of the total workforce[69]. - The company continues to focus on innovation and has a strong management team with extensive experience in game development[69]. User Engagement and Marketing - The company plans to enhance its marketing strategies, allocating 100 million RMB for digital marketing campaigns[31]. - The company has established a comprehensive user data warehouse system to track user behavior, including registration, login, recharge, and consumption, enhancing data analysis capabilities[101]. - A real-time computing framework has been built to allow market personnel to adjust advertising strategies based on real-time data, improving operational efficiency[102]. - The company actively engages with players through online and offline events to gather feedback and improve game offerings[111]. Game Performance and Recognition - The mobile game "Wandao Mobile" ranked an average of 26th on the iPhone game bestseller list, peaking at 11th[66]. - The game "Greedy Cave 2" topped the iPhone paid game list for 29 consecutive days after its launch in November 2018[66]. - The game "Crossing Star Arc" achieved the number one spot on the TapTap download list on its launch day[66]. - "Wandao Mobile" received multiple industry awards, including "Most Popular Game" at the OPPO 2018 Developer Conference[122]. - "不思议迷宫" achieved significant recognition, including the "Best Original Mobile Game Award" at the 2017 Golden Jingle Awards and the "Best Game Level Design Award" at the 2017 CGDA[130].

Financial Performance - Net profit attributable to shareholders rose by 14.30% to CNY 506,890,243.79 for the first nine months of the year[5] - Operating revenue for the first nine months increased by 8.90% to CNY 1,159,903,285.89 compared to the same period last year[5] - Basic earnings per share increased by 14.35% to CNY 7.09[5] - Cash flow from operating activities for the first nine months was CNY 610,557,220.81, up 13.31% year-on-year[5] - Total revenue for Q3 2018 reached ¥382,311,628.07, an increase from ¥344,843,819.24 in Q3 2017, representing a growth of approximately 10.7%[35] - Year-to-date revenue for 2018 was ¥1,159,903,285.89, compared to ¥1,065,153,374.79 for the same period in 2017, indicating a year-over-year increase of about 8.9%[35] - Net profit for Q3 2018 reached CNY 217,347,512.57, representing an increase of 27.67% from CNY 170,240,100.86 in Q3 2017[36] - The total profit for Q3 2018 was CNY 264,702,208.24, an increase of 37.2% compared to CNY 192,971,685.48 in Q3 2017[36] - The net profit attributable to the parent company was CNY 171,894,302.55, an increase of 19.4% from CNY 144,107,155.32 in Q3 2017[36] - The company’s total comprehensive income for Q3 2018 was CNY 220,151,771.72, compared to CNY 170,240,366.85 in Q3 2017, indicating a growth of 29.3%[37] Assets and Liabilities - Total assets increased by 15.54% to CNY 3,632,217,759.51 compared to the end of the previous year[5] - Total liabilities increased to ¥791,211,804.69 from ¥687,334,645.61 at the start of the year, marking a rise of about 15.1%[28] - Non-current assets totaled ¥1,195,823,219.37, compared to ¥755,994,745.46 at the beginning of the year, showing an increase of approximately 58.3%[28] - Current liabilities rose to ¥703,735,611.60 from ¥591,837,351.22, which is an increase of about 18.9%[28] - The total equity attributable to shareholders increased to ¥2,682,704,048.32 from ¥2,302,029,942.71, representing a growth of about 16.5%[28] Cash Flow and Investments - The company's cash and cash equivalents decreased by 38.63% to CNY 509,684,259.99 due to investments in financial products[14] - The net cash flow from investment activities improved by 60.66%, amounting to -¥660,470,282.12, due to increased redemptions of financial products[19] - Total cash inflow from investment activities reached 2,101,172,587.40 RMB, significantly higher than 772,642,467.02 RMB in the previous year[43] - Net cash flow from investment activities was positive at 36,284,887.48 RMB, a turnaround from a negative cash flow of -986,883,821.73 RMB in the same period last year[43] - Cash received from sales and services was 177,618,795.45 RMB, down from 225,100,118.17 RMB in the previous year[43] Expenses - Sales expenses decreased by 40.48% to ¥81,875,846.46 as the company optimized marketing activities and reduced inefficient promotional spending[17] - Research and development expenses for Q3 2018 amounted to CNY 65,474,799.97, up 11.4% from CNY 58,549,710.81 in Q3 2017[36] - The company reported a decrease in management expenses for Q3 2018, totaling 3,106,294.88 CNY, down from 13,500,164.25 CNY in Q3 2017[39] Shareholder Information - The number of shareholders reached 19,265 by the end of the reporting period[11] - The company completed a capital increase in its subsidiary, raising its stake in Easy Play (Shanghai) Network Technology Co., Ltd. from 4.54% to 6.20%[21]

Financial Performance - The company reported a half-year revenue of RMB 1.2 billion, representing a year-on-year increase of 15%[1]. - The company's operating revenue for the first half of 2018 was CNY 777,591,657.82, representing a 7.95% increase compared to CNY 720,309,555.55 in the same period last year[26]. - The net profit attributable to shareholders for the first half of 2018 was CNY 334,995,941.24, an increase of 11.91% from CNY 299,352,133.96 in the previous year[26]. - The basic earnings per share for the first half of 2018 was CNY 4.68, up 12.23% from CNY 4.17 in the same period last year[26]. - The company anticipates a revenue growth of 20% for the full year 2018, driven by new product launches and market expansion[1]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion yuan, representing a year-over-year growth of 25%[121]. - The company provided guidance for the next quarter, expecting revenue to reach between 1.3 billion yuan and 1.4 billion yuan, indicating a growth rate of 8% to 16%[121]. - The net profit for the first half of 2018 reached CNY 421,320,871.62, representing a 14.7% increase from CNY 367,196,175.72 in the previous year[185]. User Growth and Engagement - The number of registered users reached 30 million, an increase of 20% compared to the previous year[1]. - User data showed a total of 15 million active users, an increase of 10% compared to the previous quarter[122]. - As of June 30, 2018, the cumulative registered user count for "Wandao Mobile" exceeded 25 million, while "Unusual Maze" reached over 13 million registered users[57]. - The company has established a comprehensive user data warehouse to track user behavior, including registration, login, recharge, and consumption patterns[58]. - The company emphasizes a player-centric design philosophy, continuously optimizing user interaction based on player feedback and behavior analysis[63]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% revenue contribution from this region by the end of 2019[1]. - The company plans to launch two new mobile games in Q3 2018, aiming to capture a larger market share[1]. - The company is actively pursuing an integrated research and operation model to enhance product quality and accelerate game development iterations[41]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next year[130]. - The company has established a comprehensive overseas business strategy, launching overseas versions of "Wen Dao Mobile" and "Dungeon Castle" in 2017[86]. Research and Development - Research and development expenses increased by 25% to RMB 150 million, reflecting the company's commitment to innovation[1]. - As of June 30, 2018, the company had 255 R&D personnel, accounting for 48.02% of total employees, indicating a strong commitment to innovation[47]. - R&D expenses represented 14.79%, 16.94%, and 16.89% of total revenue for the years 2016, 2017, and the first half of 2018, respectively, highlighting sustained investment in research and development[47]. - The company has developed a distributed server architecture to enhance game performance and user capacity, allowing for theoretically unlimited server expansion[50]. - The company has implemented a backup database system to prevent data loss during network disruptions, ensuring a seamless user experience[52]. Competitive Landscape and Risks - The company faces intense competition from major players like Tencent and NetEase, which could impact its market share and financial performance[103]. - The company relies heavily on three games for revenue, which poses a risk if player preferences shift or if competition increases[102]. - Regulatory risks are increasing, with stricter requirements for game operation licenses that could affect the company's ability to continue operations[106]. - The rise of malicious software targeting game vulnerabilities poses a risk to the gaming ecosystem, potentially harming player experience and leading to significant player attrition if not effectively managed[112]. Corporate Governance and Shareholder Relations - The board has approved a profit distribution plan, proposing a cash dividend of RMB 0.5 per share[1]. - The management emphasized the importance of maintaining shareholder value, with plans for a dividend payout ratio of 30% of net income[122]. - The company has implemented a stock incentive plan, granting 142,344 restricted shares to 19 incentive objects on January 27, 2018[136]. - The company ensures that there are no false records or misleading statements in the disclosure documents related to the equity incentive plan[135]. - The company has not reported any significant changes in shareholder structure during the reporting period[161]. Social Responsibility - The company has actively engaged in social responsibility initiatives, including poverty alleviation and environmental protection since its establishment[144]. - The company donated RMB 1 million to improve medical equipment in impoverished areas during the reporting period[148]. - A total of RMB 2.39 million was invested in poverty alleviation efforts, with RMB 1.75 million specifically allocated for supporting impoverished students[148]. - The company established long-term support relationships with two schools for migrant workers, enhancing their educational conditions through donations[149]. Financial Position and Assets - The total assets at the end of the reporting period were CNY 3,358,903,249.16, reflecting a 6.85% increase from CNY 3,143,580,718.17 at the end of the previous year[26]. - The company's total equity at the end of the period was CNY 1,640,775,855.39, down from CNY 1,688,493,593.20, a decline of 2.8%[183]. - The company reported a significant increase in long-term equity investments to CNY 559,182,447.59 from CNY 347,732,158.66, a growth of approximately 60.55%[181]. - The total liabilities and equity at the end of the reporting period stand at CNY 2,089,959,410.06, indicating a balanced financial position[198].

Financial Performance - Net profit attributable to shareholders decreased by 6.27% to CNY 153,696,151.49 year-on-year[7] - Operating revenue slightly increased by 0.93% to CNY 380,011,277.23 compared to the same period last year[7] - Basic earnings per share decreased by 6.09% to CNY 2.16[7] - The company's net profit for Q1 2018 was CNY 187,879,612.98, a decrease of 6.5% compared to CNY 200,870,927.94 in the previous year[37] - Total comprehensive income attributable to the parent company was CNY 156,892,520.77, down from CNY 163,978,518.74 in the previous year[38] - The company reported a tax expense of CNY 42,235,985.72, compared to CNY 34,364,338.43 in the previous year, indicating an increase of 22.1%[37] Assets and Liabilities - Total assets increased by 5.05% to CNY 3,302,436,062.48 compared to the end of the previous year[7] - Non-current assets totaled CNY 854,654,805.63, an increase of 38.54% from CNY 616,667,907.34 at the beginning of the year[33] - Total liabilities amounted to CNY 183,062,893.81, a decrease of 4.86% from CNY 190,994,498.05 in the previous period[34] - Owner's equity increased to CNY 1,756,241,777.87, up 4.02% from CNY 1,688,493,593.20 at the beginning of the year[34] Cash Flow - Cash flow from operating activities improved by 21.98% to CNY 136,503,210.33 year-on-year[7] - Cash flow from operating activities totaled CNY 369,647,994.58, a decrease of 12.5% from CNY 422,304,009.75 in the previous year[40] - Cash flow from investment activities showed a net outflow of ¥401,576,850.89, a decrease of 731.94% compared to the previous year, primarily due to the purchase of financial products[19] - Cash inflow from sales of goods and services was 63,641,945.67 RMB, down from 80,378,706.62 RMB in the previous year[43] - The ending cash and cash equivalents balance decreased to 188,694,508.24 RMB from 1,240,682,468.36 RMB year-over-year[44] Shareholder Information - The company reported a total of 20,091 shareholders at the end of the reporting period[13] - The largest shareholder, Lu Hongyan, holds 30.09% of the shares, with 21,629,475 shares pledged[13] Employee Compensation - The company's employee compensation payable decreased by 32.38% from the beginning of the year, totaling ¥119,667,974.47 due to bonus payments[17] - The company reported a decrease in employee compensation payable to CNY 119,667,974.47 from CNY 176,978,580.36, a reduction of 32.36%[30] Investment and Financial Activities - Investment income rose significantly by 651.90% to ¥16,614,825.80, attributed to returns from investment products and income from associated enterprises[18] - Financial expenses surged by 462.92% to ¥11,652,054.18, mainly due to fluctuations in foreign exchange gains and losses[18] - The company has allocated ¥103,883,452.29 for the operation center construction project, changing the implementation entity to a subsidiary[20] - A total of 142,344 restricted stocks were granted to 27 incentive targets at a price of ¥100.07 per share[22] - The company signed a four-party supervision agreement for the special account of raised funds, with a balance of ¥46,909,000[21]