Financial Performance - The company's operating revenue for 2021 was approximately ¥2.375 billion, representing a 53.92% increase compared to ¥1.543 billion in 2020[24]. - The net profit attributable to shareholders for 2021 was approximately ¥577 million, a significant increase of 224.14% from ¥178 million in 2020[24]. - The net cash flow from operating activities reached approximately ¥501 million, marking a 393.96% increase from ¥101 million in 2020[24]. - The basic earnings per share for 2021 was ¥0.27, a 200% increase compared to ¥0.09 in 2020[24]. - The total assets at the end of 2021 were approximately ¥4.400 billion, a 24.12% increase from ¥3.545 billion at the end of 2020[24]. - Total revenue for 2021 reached ¥2,375,303,585.09, a year-on-year increase of 53.92% compared to ¥1,543,189,304.38 in 2020[61]. - Mobile games generated ¥2,247,762,402.38, accounting for 94.63% of total revenue, with a growth of 64.98% from ¥1,362,437,692.02 in 2020[61]. - Domestic revenue was ¥2,339,207,405.30, representing 98.48% of total revenue, up 63.58% from ¥1,429,980,358.55 in 2020[62]. - The company reported a significant decrease in sales expenses by 22.18% to ¥360,601,174.05, attributed to reduced marketing costs[70]. - The company reported a significant increase in revenue for 2021, achieving a total of 1.2 billion RMB, representing a year-over-year growth of 15%[104]. Shareholder Returns - The company did not distribute cash dividends or issue bonus shares during the reporting period[7]. - The company has not proposed a cash dividend distribution plan for 2021, despite having positive profits available for distribution to shareholders[143]. - The cash dividend policy stipulates that if conditions are met, at least 10% of the distributable profits for the year should be distributed in cash, or the cumulative cash distribution over the last three years should not be less than 30% of the average annual distributable profits[144]. Research and Development - The company invested 339 million CNY in R&D, accounting for 14.28% of its operating revenue, to enhance its R&D system and encourage innovation[43]. - The total R&D investment amounted to ¥339,302,755.72, representing an 8.27% increase from ¥313,376,069.01 in the previous year[76]. - Research and development expenses increased by 8.27% to ¥339,302,755.72, primarily due to higher employee compensation[70]. - The number of R&D personnel increased by 19.10% to 948 from 796 in the previous year, with the proportion of R&D personnel rising to 68.60%[76]. - The company has multiple ongoing R&D projects aimed at increasing revenue and enhancing brand presence, including "Project O" and "Code: Rebirth" which are in various stages of development[71]. Market Strategy - The company plans to continue its strategic investments and IP layout to support long-term development[10]. - The company is focusing on strategic investments in game studios to enhance its product line and create synergies with its distribution business[40]. - The company aims to explore opportunities in the metaverse, particularly in VR/AR investments, to position itself advantageously in future developments[58]. - The company is committed to exploring new business opportunities and adjusting its focus to adapt to rapid changes in the internet industry[45]. - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[118]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[5]. - The company maintains a strong commitment to corporate governance, ensuring compliance with all regulatory requirements[106]. - The company has established an independent financial department and a separate financial accounting system, ensuring compliance with accounting standards[109]. - The company has a clear asset ownership structure, with no funds or assets occupied by controlling shareholders or related parties[109]. - The company has a complete and independent organizational structure, with clearly defined responsibilities for each department[109]. Social Responsibility - The company engaged in social responsibility initiatives, including educational support and disaster relief efforts during the reporting period[11]. - The company is committed to enhancing its social responsibility, particularly in protecting minors online, and has participated in developing relevant standards[36]. - The "Civilization Cloud" project has covered 2,315 households and 5,919 individuals, showcasing the company's commitment to community development[169]. - The company has initiated the "Cloud Teaching" project to support education in remote areas, addressing the lack of resources and improving conditions for children[169]. - The company actively engages in corporate social responsibility, focusing on user value and community contributions as part of its strategic goals[167]. Employee Engagement - The company has established a comprehensive and feasible compensation management system, focusing on incentive-based pay distribution to balance internal equity and market competitiveness[140]. - The company has implemented a multi-faceted compensation incentive model to align employee value with company growth[140]. - The total number of employees at the end of the reporting period is 1,382, with 1,377 from major subsidiaries and 5 from the parent company[139]. - The professional composition includes 948 technical personnel, 205 production personnel, 99 sales personnel, 23 financial personnel, and 107 administrative personnel[139]. - The company has established a comprehensive training system, with 15,487 participants in online courses and a total of 5,893.42 hours of online learning in the reporting period[141]. Risk Management - The company faces regulatory policy risks, which could adversely affect operations if necessary licenses are not obtained or maintained[99]. - Market competition is intensifying, with increasing demand for online games and mobile applications, leading to a rapidly expanding market size[98]. - The company recognizes the risk of core talent loss, emphasizing the importance of retaining skilled personnel for sustainable development[99]. - The company has established a strong internal control system to ensure compliance and efficient operations across all business activities[99]. Investor Relations - The company conducted multiple investor relations activities throughout 2021, including meetings and roadshows to discuss business performance and governance[101]. - The company reported significant engagement with various institutional investors, including Shanghai Securities and Huatai Securities, indicating strong interest in its business operations[101]. - The company maintained a proactive approach to investor relations, with multiple updates and communications throughout the year to keep stakeholders informed[101]. - The company’s investor relations activities included detailed discussions on performance metrics and future outlook, reflecting a commitment to transparency[101]. Leadership Changes - The company experienced a change in senior management, with the resignation of the CFO and several board members due to work adjustments[116]. - The new CFO, Huang Zhenfeng, was appointed on June 30, 2021, to enhance the company's financial management[116]. - The management team has been restructured to align with the company's operational needs, with new appointments in key positions[116]. - The new management team is expected to drive growth and innovation in the company's product lines[118]. Compliance and Legal Matters - The company has not faced any administrative penalties related to environmental issues during the reporting period, demonstrating compliance with environmental regulations[166]. - The company is currently involved in several significant litigation cases, with one case involving a compensation amount of 250,000 yuan[188]. - The company has a pending case with a claimed amount of 1,000,000 yuan, which is currently under review[188]. - The company has committed to maintaining compliance with regulatory requirements amidst the changes in its supervisory board[116].

Financial Performance - The company's revenue for Q1 2022 reached ¥1,029,010,035.63, representing a 129.73% increase compared to ¥447,916,839.10 in the same period last year[3] - Net profit attributable to shareholders was ¥248,296,194.84, up 66.66% from ¥148,980,095.89 year-on-year[3] - The company reported a basic earnings per share of ¥0.12, a 71.43% increase from ¥0.07 in the same period last year[3] - Operating profit for Q1 2022 was ¥348,661,606.84, compared to ¥203,886,419.18 in the same period last year, indicating a year-over-year increase of about 71.0%[17] - The total comprehensive income for the first quarter was CNY 351,028,813.39, an increase from CNY 203,609,319.04 in the previous year, representing a growth of approximately 72.4%[18] - The net profit attributable to the parent company was CNY 247,285,216.89, compared to CNY 151,352,607.05 in the same period last year, reflecting a year-over-year increase of about 63.4%[18] Cash Flow and Liquidity - The net cash flow from operating activities increased by 326.85%, amounting to ¥356,551,692.16 compared to ¥83,531,731.73 in the previous year[3] - The company's cash and cash equivalents rose by 30.15% to ¥1,533,122,964.23, driven by higher net cash flow from operating activities[7] - Operating cash flow for the quarter was CNY 356,551,692.16, significantly up from CNY 83,531,731.73 in the previous year, marking an increase of approximately 326.5%[19] - Cash and cash equivalents at the end of the period totaled CNY 1,518,280,369.88, compared to CNY 704,372,532.40 at the end of the previous year, indicating a growth of about 115.5%[19] - The net increase in cash and cash equivalents for the quarter was CNY 355,168,978.00, compared to CNY 39,121,452.43 in the previous year, marking an increase of approximately 807.5%[19] Assets and Liabilities - The total assets at the end of the reporting period were ¥5,114,557,569.60, reflecting a 16.25% increase from ¥4,399,599,882.51 at the end of the previous year[3] - Total liabilities amounted to ¥1,010,571,943.27 in Q1 2022, compared to ¥650,557,127.03 in Q1 2021, indicating an increase of approximately 55.3%[16] - The total equity attributable to shareholders increased by 7.36% to ¥3,656,744,276.07 from ¥3,405,916,875.05 at the end of the previous year[3] - The company's total equity attributable to shareholders reached ¥3,656,744,276.07 in Q1 2022, up from ¥3,405,916,875.05 in Q1 2021, indicating a growth of about 7.3%[16] Operational Metrics - Operating costs increased to ¥308,252,864.38, reflecting a 254.04% rise from ¥87,068,060.18, primarily due to the increase in revenue[9] - The company reported a total cost of operations of ¥666,346,807.96 in Q1 2022, compared to ¥310,527,857.69 in Q1 2021, which is an increase of approximately 114.4%[17] - Sales expenses rose to ¥238,423,046.05, a 133.84% increase from ¥101,960,338.33, primarily due to higher marketing costs[9] - Research and development expenses for Q1 2022 were ¥83,604,725.34, up from ¥75,206,390.06 in Q1 2021, reflecting a growth of about 11.9%[17] Investment and Shareholder Information - The company reported a net investment cash flow of ¥7,039,202.44, a decrease of 90.23% from ¥72,067,741.24, mainly due to reduced cash receipts from investment recoveries[10] - The company experienced a significant loss in investment income of -¥12,587,369.01, a 120.48% decline from the previous period's income of ¥61,455,584.50, due to losses from the disposal of held-for-sale stocks[9] - The fair value change income was -¥11,168,624.78, a drastic decrease of 1749.34% from -¥603,923.95, resulting from reduced gains from stock price changes[9] - The total number of common shareholders at the end of the reporting period was 52,921, with no preferred shareholders having restored voting rights[11] - The company has a total of 461,570,064 shares held by its largest shareholder, Wang Yue, representing a 21.44% ownership stake[12]

Financial Performance - The company's revenue for Q3 2021 reached ¥662,415,421.15, representing a 114.12% increase compared to the same period last year[4] - Net profit attributable to shareholders was ¥224,453,377.46, up 96.34% year-on-year[4] - The net profit excluding non-recurring gains and losses was ¥189,283,849.91, showing a significant increase of 684.39% compared to the previous year[4] - The basic earnings per share for the period was ¥0.11, a 120.00% increase year-on-year[4] - Total operating revenue for Q3 2021 reached ¥1,649,988,113.71, a 47.1% increase from ¥1,121,166,799.19 in the same period last year[16] - Operating profit for Q3 2021 was ¥699,961,773.69, compared to ¥177,693,509.52 in Q3 2020, reflecting a significant growth[17] - Net profit attributable to shareholders of the parent company was ¥501,525,592.51, up from ¥164,575,591.55 in the previous year, marking a 204.1% increase[17] - Basic and diluted earnings per share for Q3 2021 were both ¥0.24, compared to ¥0.08 in the same period last year[18] - Total comprehensive income for Q3 2021 was ¥693,391,746.95, compared to ¥192,436,927.58 in the same period last year[18] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥4,165,540,487.71, reflecting a 17.52% increase from the end of the previous year[4] - Total liabilities increased to ¥583,136,676.49, up from ¥536,032,851.51 year-over-year[16] - As of September 30, 2021, total current assets amounted to ¥2,422,634,147.77, up from ¥1,939,385,453.89 at the end of 2020[14] - The total current liabilities amounted to ¥508,593,759.67, slightly up from ¥483,291,123.83 year-over-year[16] - Contract liabilities rose to ¥81,406,594.55, compared to ¥54,089,085.50 in the previous year, indicating a 50.6% increase[16] Cash Flow - The cash flow from operating activities for the year-to-date was ¥187,957,560.49, an increase of 29.63%[4] - The net cash flow from operating activities increased by 29.63% to ¥187,957,560.49, primarily due to higher cash received from sales compared to the previous year[9] - The net cash flow from investing activities improved significantly by 255.01% to ¥165,640,944.20, mainly due to a reduction in cash paid for investments compared to the same period last year[9] - The net cash flow from financing activities decreased by 42.39% to -¥175,354,286.04, attributed to increased cash payments for dividends and interest compared to the previous year[9] - Total cash inflow from operating activities is ¥1,577,829,326.44, up from ¥1,476,691,107.72 in the previous period[20] - Cash outflow from operating activities totaled ¥1,389,871,765.95, compared to ¥1,331,695,661.82 in the previous period[20] - The net cash flow from investing activities is ¥165,640,944.20, a significant improvement from -¥106,860,566.41 in the previous period[21] - Cash and cash equivalents at the end of the period amount to ¥841,936,428.12, an increase from ¥643,187,899.12 in the previous period[21] - The company received cash from investment recovery of ¥305,144,967.92, down from ¥349,664,882.13 in the previous period[20] - Cash paid for the purchase of fixed assets and other long-term assets was ¥64,481,015.48, compared to ¥11,258,607.69 in the previous period[21] - The cash outflow from financing activities totaled ¥175,354,286.04, compared to ¥140,468,175.70 in the previous period[21] - The company reported a cash inflow from tax refunds of ¥2,104,511.16, an increase from ¥782,622.47 in the previous period[20] Shareholder Information - The top shareholder, Wang Yue, holds 21.44% of the shares, amounting to 461,570,064 shares[10] - The company reported a total of 50,523 common shareholders at the end of the reporting period[10] Legal Matters - The company is currently involved in legal proceedings concerning its major shareholder, which may impact its operations[12] Research and Development - Research and development expenses for Q3 2021 were ¥218,529,058.79, down from ¥252,639,126.88 in Q3 2020, a decrease of 13.5%[16] Financial Position - The company's financial assets decreased by 52.59% to ¥132,823,035.40, attributed to a reduction in the balance of purchased financial products[8] - The company's capital reserve increased to ¥750,539,011.22 from ¥731,044,730.41, reflecting a growth of 2.1%[16] - Accounts receivable rose to ¥799,650,457.89, compared to ¥398,734,909.60 in the previous year, indicating a significant increase in sales on credit[13] - The total assets of the company reached ¥4,165,540,487.71, up from ¥3,544,602,014.48 at the end of 2020[14] Leasing Standards - The company did not require adjustments to the balance sheet for the new leasing standards as its leasing business involves short-term leases[22]

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥987.57 million, representing a 21.65% increase compared to the same period last year[10]. - The net profit attributable to shareholders of the listed company reached approximately ¥277.07 million, a significant increase of 451.33% year-on-year[10]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥202.87 million, up 334.85% from the previous year[10]. - The basic earnings per share for the period was ¥0.13, reflecting a 450.85% increase compared to ¥0.0236 in the same period last year[10]. - The total operating revenue for the first half of 2021 reached ¥987,572,692.56, a 21.6% increase from ¥811,797,902.32 in the same period of 2020[100]. - The total profit for the first half of 2021 was ¥398,161,433.15, compared to ¥72,145,848.73 in the previous year[101]. - The company reported a significant increase in income tax expenses, which rose by 325.66% to ¥28,533,398.01 due to increased profits[23]. - The company reported a net loss of ¥4,488,452.99 in comprehensive income, compared to a loss of ¥16,660,132.02 in the previous year[104]. Assets and Liabilities - The total assets of the company at the end of the reporting period were approximately ¥3.90 billion, an increase of 9.99% from the end of the previous year[10]. - The net assets attributable to shareholders of the listed company were approximately ¥3.08 billion, up 6.54% from the previous year[10]. - Cash and cash equivalents at the end of the reporting period amounted to ¥838,939,404.51, representing 21.52% of total assets[28]. - Total liabilities amounted to CNY 605,675,868.48, an increase from CNY 536,032,851.51, which is a rise of approximately 12.9%[95]. - The total equity of the company at the end of the reporting period was CNY 10,068,777,688.46, with a decrease of CNY 87,054,715.04 during the period[115]. Cash Flow - The net cash flow from operating activities was approximately ¥124.99 million, a decrease of 36.08% compared to the same period last year[10]. - The net cash flow from investment activities was ¥165,569,876.92, a significant improvement from a negative cash flow of ¥39,700,528.65 in the first half of 2020[106]. - Cash outflow from financing activities was ¥126,841,265.83, slightly lower than ¥140,468,175.70 in the previous year[107]. Revenue Sources - Game product revenue accounted for 84.21% of total revenue, amounting to ¥831,586,178.25, which is a 43.24% increase from ¥580,541,306.41 in the previous year[24]. - Domestic revenue accounted for 97.19% of total revenue, amounting to ¥959,814,043.65, which is a 29.16% increase from ¥743,144,072.05 in the previous year[24]. - Mobile internet revenue decreased by 32.55% to ¥155,986,514.31, while game product revenue increased by 43.24% to ¥831,586,178.25[25]. Investments and Subsidiaries - The company disposed of part of its long-term equity investments, resulting in a decrease in long-term equity investments to ¥354,778,551.67[29]. - The company established several new subsidiaries, including Cedar Technology HK Limited, Ginkgo Technology HK Limited, and Spruce Technology HK Limited, which are expected to have no significant impact on overall operations and performance[39]. - The company sold a 20% stake in Hangzhou Tengmu Network Technology Co., Ltd. for ¥10,000, contributing a net profit of ¥6,290.95 to the company, which accounted for 17.27% of the total net profit[36]. Shareholder Actions - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[2]. - Chairman Jin Feng committed to increase his shareholding in the company by no less than RMB 30 million, with the plan to be executed within 6 months from January 28, 2021[51]. - A group of directors and senior management pledged to increase their shareholding by no less than RMB 16.5 million within 6 months from July 1, 2020[51]. Regulatory and Legal Matters - The company faces regulatory risks related to game development and publishing, which could adversely affect operations if necessary approvals are not obtained[40]. - The company is involved in a significant arbitration case with a claim amount of RMB 48,158,000, which is currently under review[55]. - The company has a pending lawsuit regarding intellectual property disputes with a claim amount of RMB 1,000,000, which is currently in the second instance[56]. Research and Development - Research and development expenses were ¥143,539,410.56, a decrease of 22.81% from ¥185,945,369.81 in the previous year, primarily due to the exclusion of a subsidiary from the consolidated financial statements[23]. - The company has established a strong competitive barrier in the legendary game category through its extensive R&D and operational experience[19]. Corporate Governance and Compliance - The company is committed to compliance with legal regulations regarding online gaming and has implemented measures to ensure user safety and content regulation[48]. - The company has made adjustments to its management structure to enhance operational efficiency in response to business expansion[41]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[47]. Market and Competitive Landscape - The Chinese gaming market's actual sales revenue reached 150.493 billion yuan in the first half of 2021, with a year-on-year growth of 7.89%[15]. - The user base for Chinese gaming reached approximately 667 million, marking a year-on-year increase of 1.38%[18]. - The market for web and mobile games is rapidly expanding, with increasing competition expected as more players enter the market[40].

Financial Performance - The company's revenue for Q1 2021 was CNY 447,916,839.10, representing a 5.88% increase compared to CNY 423,036,194.75 in the same period last year[3]. - Net profit attributable to shareholders reached CNY 148,980,095.89, a significant increase of 400.93% from CNY 29,740,537.59 in the previous year[3]. - The net profit after deducting non-recurring gains and losses was CNY 67,517,777.33, up 117.08% from CNY 31,103,371.65 year-on-year[3]. - The basic earnings per share increased to CNY 0.07, a 600.00% rise from CNY 0.01 in the same quarter last year[3]. - Net profit for Q1 2021 was CNY 201,236,807.88, compared to CNY 47,896,856.08 in the previous year, indicating a significant increase of 319.5%[34]. - The net profit attributable to shareholders of the parent company was CNY 148,980,095.89, up from CNY 29,740,537.59, reflecting a growth of 399.5%[34]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 3,698,950,044.21, reflecting a 4.35% increase from CNY 3,544,602,014.48 at the end of the previous year[3]. - The total liabilities of the company were reported at ¥577,823,424.01, up from ¥536,032,851.51, marking an increase of approximately 7.8%[26]. - The total current liabilities amounted to ¥524,178,639.77, an increase from ¥483,291,123.83, reflecting a growth of approximately 8.5%[26]. - The total assets as of the end of Q1 2021 were CNY 10,165,260,701.32, compared to CNY 10,136,153,322.45 at the end of the previous period[30]. Cash Flow - The net cash flow from operating activities was CNY 83,531,731.73, down 39.70% from CNY 138,515,980.84 in the previous year[3]. - Cash flow from operating activities generated a net inflow of 83,531,731.73 yuan, down from 138,515,980.84 yuan in the previous year[38]. - The net cash flow from operating activities for the current period is ¥21,730,896.31, a decrease of 48.9% compared to ¥42,606,067.10 in the previous period[40]. - Cash inflow from operating activities totaled ¥262,422,807.01, up 106.5% from ¥126,978,712.10 in the previous period[40]. - Cash outflow from operating activities increased to ¥240,691,910.70, compared to ¥84,372,645.00 in the previous period, marking a rise of 184.5%[40]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 49,824[6]. - The largest shareholder, Wang Yue, held 21.44% of the shares, totaling 461,570,064 shares[6]. - The company repurchased 21,947,300 shares, accounting for 1.02% of total share capital, with a total transaction amount of CNY 99,999,057.92[14]. Inventory and Receivables - Accounts receivable increased by 33.56% to CNY 532,551,633.68 due to an increase in entrusted R&D income[11]. - Inventory rose by 152.21% to CNY 9,555,952.80, primarily due to increased contract performance costs[11]. - Contract liabilities increased by 131.04% to CNY 124,965,006.15, mainly from pre-received technical development fees[11]. Other Income and Expenses - The company reported a non-operating income of CNY 81,462,318.56, primarily due to compensation received during the reporting period[4]. - Operating costs decreased by 41.73% to CNY 87,068,060.18, attributed to the exclusion of a subsidiary from the consolidated financial statements[12]. - Investment income surged by 478.63% to CNY 61,455,584.50, primarily from the disposal of equity in Hangzhou Tengmu[12]. - Other income increased by 126.04% to CNY 13,463,155.22, mainly from increased mediation compensation received[12]. - Research and development expenses increased to CNY 75,206,390.06 from CNY 65,438,866.44, a rise of approximately 14.0%[32]. Strategic Initiatives - The company has entered into strategic cooperation agreements with multiple partners to enhance market presence[15]. - The company has no overdue commitments from major shareholders or related parties during the reporting period[21]. Comprehensive Income - The total comprehensive income for the first quarter was -1,804,564.86 yuan, an improvement from -6,682,058.03 yuan in the same period last year[36].

Financial Performance - The company's operating revenue for 2020 was ¥1,543,189,304.38, a decrease of 24.24% compared to the previous year[11]. - The net profit attributable to shareholders for 2020 was ¥177,926,021.84, representing a significant increase of 109.39% from a loss of ¥1,850,689,644.51 in 2019[11]. - The net cash flow from operating activities for 2020 was ¥101,360,406.92, down 68.97% from ¥326,671,048.53 in 2019[11]. - The basic earnings per share for 2020 was ¥0.09, compared to a loss of ¥0.86 in 2019, marking an improvement of 110.23%[11]. - Total assets at the end of 2020 were ¥3,544,602,014.48, a decrease of 7.81% from ¥3,844,882,052.02 at the end of 2019[12]. - The net assets attributable to shareholders at the end of 2020 were ¥2,888,980,872.17, an increase of 1.34% from ¥2,850,726,891.94 at the end of 2019[12]. - The company achieved a total revenue of 1.543 billion yuan, a year-on-year decrease of 24.24%[26]. - The net profit attributable to shareholders increased by 109.39% to 178 million yuan[26]. - R&D investment amounted to 313.38 million yuan, accounting for 20.31% of total revenue[24]. - The company reported a significant reduction in sales expenses, totaling ¥463,375,598.87, down 17.15% from ¥559,267,816.81 in 2019[40]. Business Strategy and Development - The company reported a strategic focus on three major business segments, enhancing synergy and promoting long-term strategic goals[3]. - The company has shifted its main business focus from shoe production to technology development and consulting in the computer field since its listing[9]. - The company plans to launch more premium works based on the "Blue Moon" IP, marking a significant step in its IP incubation strategy[20]. - The company has accumulated numerous IP licenses, including "Legend World" and "Sword Art Online," to support its product diversification goals[20]. - The company is focusing on enhancing its global distribution capabilities across various regions including Southeast Asia and Europe[27]. - The company plans to enhance communication to expedite the overseas launch of "Gundam Battle," which has completed its first overseas test[41]. - The company is considering strategic acquisitions to enhance its market position, with potential targets identified in the tech sector[156]. Legal and Compliance Issues - The company is involved in a trademark infringement and unfair competition case with Tencent, with a compensation ruling of RMB 1 million[101]. - The company has a pending arbitration case with Legend IP, involving a claim amount of RMB 48.16 million[99]. - The company has faced a lawsuit from Tencent resulting in a judgment requiring the company to pay RMB 30 million in damages[101]. - The company has reported no expected liabilities from ongoing litigation cases[99]. - The company continues to monitor and manage its legal risks associated with ongoing litigation and arbitration cases[101]. - The company has committed to strictly fulfilling its promises regarding related transactions and competition[81]. Shareholder and Dividend Policy - Kaiying Network did not distribute cash dividends or issue bonus shares for the reporting period[2]. - The company reported a net profit available for distribution to ordinary shareholders in 2020, but did not propose a cash dividend distribution plan[78]. - The average distributable profit over the last three years was negative, which influenced the decision not to propose a cash dividend for the reporting period[78]. - The company has a clear cash dividend policy outlined in its articles of association, which states that cash dividends should not be less than 10% of the distributable profit for the year[78]. Research and Development - The company has established a multi-dimensional R&D system with 796 R&D personnel, representing 66.83% of total employees[24]. - The company has successfully launched long-cycle premium products including "Blue Moon Legend" and "Miracle" series games[25]. - Research and development investment in 2020 amounted to approximately 313.38 million yuan, a decrease of 15.94% compared to 2019, with R&D investment accounting for 20.31% of operating revenue[44]. Corporate Governance - The company has established an independent financial department with a dedicated team, ensuring compliance with accounting standards and independent financial decision-making[169]. - The independent directors did not raise any objections to company matters during the reporting period, indicating a consensus on governance[173]. - The company has a complete and independent operational system, with no reliance on controlling shareholders for production and operations[168]. - The company has established a robust investor relations management system, ensuring timely and accurate information disclosure[167]. Market and Competitive Landscape - The company recognizes regulatory policy risks, particularly regarding the need for licenses and approvals for game operations, which could adversely affect business activities[73]. - Increased market competition is anticipated as the gaming market expands, leading to a more competitive environment[73]. - The company emphasizes the importance of high-quality content and user experience in game development to attract and retain players[72]. Employee Engagement and Compensation - The company has implemented a performance evaluation and incentive mechanism for senior management to enhance work motivation[166]. - The total pre-tax compensation for directors, supervisors, and senior management amounted to 14.27 million CNY[160]. - The company has a total of 2,979,000 restricted stocks granted to a vice president, with a grant price of 5.05 CNY per share[161].

Financial Performance - Operating revenue for the reporting period was ¥309,368,896.87, representing a decline of 31.61% year-on-year[3]. - Net profit attributable to shareholders was ¥114,320,340.83, an increase of 359.51% compared to the same period last year[3]. - The net profit after deducting non-recurring gains and losses was ¥24,131,290.24, up by 31.35% year-on-year[3]. - Basic earnings per share for the reporting period were ¥0.05, reflecting a 400.00% increase compared to the previous period[3]. - The total operating profit for Q3 2020 was approximately ¥112.60 million, a significant increase from ¥43.72 million in the same period last year, representing a growth of 157.5%[47]. - The net profit for Q3 2020 reached ¥134.06 million, compared to ¥43.23 million in Q3 2019, marking an increase of 209.5%[47]. - The company reported a net profit of ¥754,710,861.25, up from ¥636,335,963.59 year-on-year[41]. - The company’s total comprehensive income for Q3 2020 was approximately ¥123.99 million, compared to ¥56.84 million in the same period last year, representing an increase of 118.8%[48]. Cash Flow and Assets - The net cash flow from operating activities was -¥50,536,043.93, a decrease of 284.39% compared to the same period last year[3]. - Cash and cash equivalents decreased significantly to ¥2,668,430.51 from ¥37,292,213.90[42]. - The company reported cash inflows from investment activities of 104,738,734.14 CNY, while cash outflows were only 20,599.95 CNY, resulting in a net cash flow from investment activities of 104,718,134.19 CNY[63]. - The company’s total assets amounted to approximately CNY 3.54 billion, a decrease from CNY 3.84 billion at the end of 2019[38]. - Total assets at the end of the reporting period amounted to ¥3,536,089,233.86, a decrease of 8.03% compared to the end of the previous year[3]. - The company’s total current assets increased to 2,290,052,551.28 CNY, reflecting an increase of 18,657,035.37 CNY[67]. - The company reported cash inflow from operating activities totaling approximately ¥1.48 billion, while cash outflow was around ¥1.33 billion, resulting in a net cash flow of ¥145 million[60]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 56,925[6]. - The largest shareholder, Wang Yue, held 21.44% of the shares, totaling 461,570,064 shares[6]. - The company repurchased a total of 37,762,950 shares, accounting for 1.75% of its total share capital, with a total transaction amount of approximately 99.99 million RMB[17]. - The company granted 19.35 million stock options to senior management and key personnel as part of its stock incentive plan, approved on September 2, 2020[16]. Liabilities and Equity - The total liabilities amounted to ¥563,516,163.86, down from ¥941,227,398.40 year-on-year[41]. - The company reported a 67.63% decrease in estimated liabilities to ¥37,100,000.00 due to the exclusion of Zhejiang Jiuling from the consolidated scope[11]. - The total equity attributable to shareholders reached ¥2,881,950,595.83, compared to ¥2,850,726,891.94 in the previous year[41]. - The company’s retained earnings increased to ¥2,082,947,530.77 from ¥314,558,322.60 year-on-year[44]. Operational Changes and Challenges - The company has been actively managing its shareholder disputes and has taken steps to ensure compliance with regulatory requirements[17]. - The company is focused on maintaining its market position while navigating challenges related to shareholder actions and legal matters[17]. - The company has implemented new revenue and leasing standards starting from 2020, which required adjustments to the financial statements[65]. - The company has adopted new revenue recognition standards effective January 1, 2020, impacting financial reporting[71]. Other Income and Expenses - Other income increased by 209.23% to ¥6,050,929.18 primarily from government subsidies received[12]. - Sales expenses decreased by 40.55% to ¥264,644,427.46 mainly due to reduced marketing expenses[12]. - Research and development expenses for Q3 2020 were ¥66.69 million, down from ¥105.45 million in the previous year, indicating a reduction of 36.8%[46]. - The company reported a decrease in sales expenses to ¥52.93 million in Q3 2020 from ¥133.11 million in Q3 2019, a reduction of 60.3%[46].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥811,797,902.32, a decrease of 22.80% compared to ¥1,051,535,963.44 in the same period last year[11]. - Net profit attributable to shareholders of the listed company was ¥50,255,250.72, an increase of 8.16% from ¥46,462,576.66 year-on-year[11]. - The net profit after deducting non-recurring gains and losses was ¥46,651,481.50, reflecting a growth of 15.43% compared to ¥40,417,015.79 in the previous year[11]. - The net cash flow from operating activities was ¥195,531,489.83, a significant increase of 1,556.69% from -¥13,423,038.82 in the same period last year[11]. - Basic earnings per share were ¥0.0236, representing an 18.00% increase from ¥0.02 in the previous year[11]. - The diluted earnings per share also stood at ¥0.0236, marking an 18.00% increase compared to ¥0.02 last year[11]. - The weighted average return on net assets was 1.75%, up from 0.96% in the previous year, an increase of 0.79%[11]. - Total assets at the end of the reporting period were ¥3,790,223,222.94, a decrease of 1.42% from ¥3,844,882,052.02 at the end of the previous year[11]. - Net assets attributable to shareholders of the listed company were ¥2,790,229,181.46, down 2.12% from ¥2,850,726,891.94 at the end of the previous year[11]. Dividend and Shareholder Actions - The company plans not to distribute cash dividends or issue bonus shares during this reporting period[2]. - The annual shareholders' meeting had a participation rate of 52.96%, reflecting shareholder engagement in corporate governance[54]. - The company chairman Jin Feng committed to increase shareholding by no less than RMB 150 million and no more than RMB 300 million within 6 months starting from May 15, 2020, and has fulfilled this commitment[56]. - Jin Feng also committed to increase shareholding by no less than RMB 45 million and no more than RMB 90 million within 6 months starting from May 8, 2020, and has fulfilled this commitment[56]. - The company completed the transfer of 15,877,180 shares to the employee stock ownership plan at a price of 1 RMB per share, representing 0.74% of the total share capital[78]. - The company’s board approved the first employee stock ownership plan, which was later ratified at the 2019 annual general meeting[78]. Legal and Regulatory Matters - The company faced administrative regulatory measures from the Fujian Securities Regulatory Bureau, requiring certain shareholders to fulfill their commitments by August 30, 2019[60]. - The company has been actively pursuing legal actions against shareholders who failed to comply with their commitments[61]. - The company received a non-standard audit report from Huaxing Accounting Firm for the 2019 fiscal year, indicating that the audit requirements were not fully met despite the company's cooperation[63]. - The company paid a fine of RMB 600,000 in response to an administrative penalty from the China Securities Regulatory Commission, with two individuals each fined RMB 300,000[63]. - The company is involved in a significant arbitration case with a claim amount of RMB 48,158,000, which is currently under review by the Beijing Fourth Intermediate People's Court[65]. - The company has taken steps to freeze and seize assets related to the arbitration case, totaling RMB 481,577,993.33, until obligations are fulfilled[65]. - The company is currently involved in multiple lawsuits, including a significant case against Zhou Yu and Li Siyun regarding equity transfer disputes, with a claim amount of 89,997,000 RMB[71]. Business Operations and Strategy - The company launched several successful mobile games, including "King of Legends" and "Gundam Battle," while developing new titles[17]. - The company has established a professional overseas business team to expand its international market presence[17]. - The company emphasized its commitment to high-quality game product operations and user experience[20]. - The company is focused on enhancing its R&D system to improve overall efficiency and product quality[20]. - The company is actively exploring new mobile internet product opportunities through big data analysis and user behavior insights[21]. - The company plans to focus on deepening its gaming business while continuously exploring new business opportunities, emphasizing a "dual-driven" strategy of R&D and distribution[53]. Financial Position and Assets - Cash and cash equivalents increased by 122.22% to ¥36,813,146.47 due to improved cash flow from operating activities[25]. - The company reported a significant increase in trading financial assets to ¥499,840,631.83, representing 13.19% of total assets[31]. - The total amount of financial assets at fair value at the end of the period is 866,103,044.72 CNY, with a decrease in fair value of 16,746,039.50 CNY during the period[33]. - The company has a total of 188,600.4 million CNY in raised funds, with 0 CNY invested during the reporting period, and a cumulative investment of 188,600.4 million CNY[40]. - The company has 10,440,221.73 CNY in restricted cash due to various reasons, including legal issues related to a subsidiary[34]. - The company reported a total of 335,000,000.00 CNY in purchases of financial assets during the period[33]. Research and Development - The company’s research and development investment was 185.95 million yuan, a decrease of 5.92% compared to the previous year[24]. - The company has established a strong capability in acquiring and developing quality IPs, enhancing its core competitiveness[21]. Related Party Transactions - The company reported a total of 234.19 million yuan in related party transactions, accounting for 2.12% of similar transaction amounts[80]. - The company did not exceed the approved transaction limit of 1,000 million yuan for related party transactions[80]. - There were no asset or equity acquisitions or sales related party transactions during the reporting period[82]. Compliance and Governance - The company is committed to enhancing its internal control systems to ensure compliance and efficiency in business operations[53]. - The company has been actively enhancing its management practices to maintain operational stability[77]. - The company is focused on strengthening its governance and compliance measures in light of recent investigations[77]. Market and Competition - The company has identified risks such as regulatory policy risks and intensified market competition, which could adversely affect operations[52]. - The company anticipates a potential loss or significant fluctuation in net profit compared to the same period last year, but has not provided specific figures[51].