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].

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].