Financial Performance - The company's operating revenue for Q1 2020 was ¥423,036,194.75, a decrease of 36.93% compared to ¥670,780,906.61 in the same period last year[4] - Net profit attributable to shareholders was ¥29,740,537.59, down 66.35% from ¥88,392,215.74 year-on-year[4] - The net profit after deducting non-recurring gains and losses was ¥31,103,371.65, a decline of 61.43% compared to ¥80,643,558.90 in the previous year[4] - Basic and diluted earnings per share were both ¥0.01, a decrease of 75.00% from ¥0.04 in the previous year[4] - Total comprehensive income for the period was CNY 50,785,632.50, a decrease of 48.8% from CNY 99,135,735.39 in the previous period[40] - Net profit attributable to the parent company was CNY 32,629,314.01, down 62.5% from CNY 86,891,476.20 year-on-year[40] Cash Flow - The net cash flow from operating activities increased significantly to ¥138,515,980.84, compared to a negative cash flow of ¥3,821,219.19 in the same period last year, representing a 3,724.91% increase[4] - The net cash flow from operating activities for the first quarter was ¥42,606,067.10, a significant increase compared to ¥3,450,848.29 in the previous year, representing a growth of approximately 1,136%[47] - The total cash inflow from operating activities was ¥126,978,712.10, compared to ¥21,245,138.54 in the same period last year, indicating a year-over-year increase of about 497%[47] - The company's net cash flow from investing activities was ¥11,848,883.69, a significant improvement from -¥261,652,706.13 in the previous year[14] - The net cash flow from investment activities was ¥51,000,000.00, with no cash outflow reported for the current period, contrasting with the previous year where cash outflow was significant[48] - The net cash flow from financing activities was -¥99,981,836.00, reflecting a cash outflow primarily due to dividend payments and other financing activities[48] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,885,070,147.27, an increase of 1.05% from ¥3,844,882,052.02 at the end of the previous year[4] - The company's total liabilities reached CNY 1,062,932,885.11, compared to CNY 941,227,398.40 at the end of 2019, marking an increase of around 12.9%[32] - The total liabilities were reported at ¥941,227,398.40, down from ¥986,350,506.66, indicating a reduction of about 5%[50] - The total equity attributable to shareholders decreased to CNY 2,754,803,181.99 from CNY 2,850,726,891.94, a decline of approximately 3.4%[33] - The company's equity decreased to CNY 8,264,632,412.53 from CNY 8,371,296,306.56[36] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 83,107, with the top ten shareholders holding significant stakes[7] - The company completed a share repurchase plan, acquiring 37,762,950 shares, which represents 1.75% of the total share capital, with a total expenditure of between RMB 50 million and RMB 100 million[25] - The chairman plans to increase his shareholding by an amount not less than RMB 50 million and not exceeding RMB 100 million within six months[15] Government Support and Other Income - The company received government subsidies amounting to ¥8,290,859.23 during the reporting period, primarily related to special enterprise subsidies[5] - The company recorded a significant increase in other income by 291% to ¥2,288,054.28, mainly from VAT input tax deductions[12] Research and Development - Research and development expenses were ¥65,438,866.44, down 38% from ¥105,166,642.40 in the same period last year[12] - The company plans to focus on new product development and market expansion strategies moving forward[40] Impairments and Losses - The company reported a loss of ¥3,145,111.10 from the disposal of non-current assets, mainly due to the impairment of intangible assets[5] - The company intends to recognize an asset impairment loss of approximately RMB 2,181.89 million for the year 2019[15] Changes in Accounting Standards - The company has adopted the new revenue recognition standards starting January 1, 2020, impacting the financial reporting[54] - The company reported a 100% increase in contract liabilities due to the first-time implementation of new revenue standards[11] - The company’s inventory increased by 100% to ¥18,858,591.55 due to the first-time execution of new revenue standards[11] - The company’s accounts payable rose by 34% to ¥540,277,924.47, primarily due to delayed settlements related to the pandemic[11]

Business Focus and Strategy - The company reported a significant change in its main business focus from producing various shoes and materials to technology development, transfer, consulting, and services in the computer field [12]. - The company plans to expand its market presence and enhance its product offerings through new game developments and partnerships [4]. - The company is actively expanding its overseas business and has established a professional overseas team to enhance market penetration [22]. - The company plans to focus on the game industry, implementing a "dual-driven" strategy of R&D and distribution, and aims to enhance its core competitiveness [69]. - The company intends to develop high-quality IP products, including titles like "Magic God Hero" and "Sword Art Online," while expanding its product line [69]. - The company will continue to integrate distribution resources and expand into overseas markets, enhancing market insight and refined product operation capabilities [69]. - The company has established a dual-driven strategy of "R&D + Distribution" to explore new market opportunities and strengthen its competitive position [71]. Financial Performance - The company's operating revenue for 2019 was ¥2,036,876,355.19, a decrease of 10.81% compared to the previous year [14]. - The net profit attributable to shareholders was -¥1,850,689,644.51, representing a decline of 1,161.26% year-over-year [14]. - The net cash flow from operating activities was ¥326,671,048.53, down 62.72% from the previous year [14]. - Total assets at the end of 2019 were ¥3,844,882,052.02, a decrease of 36.62% compared to the end of 2018 [15]. - The net assets attributable to shareholders decreased by 40.65% to ¥2,850,726,891.94 at the end of 2019 [15]. - The basic earnings per share for 2019 was -¥0.8606, reflecting a significant decline of 1,175.75% from the previous year [14]. - The weighted average return on equity was -49.11%, a decrease of 52.73% compared to the previous year [14]. - The company achieved total revenue of CNY 2.04 billion in 2019, a decrease of 10.81% compared to the previous year [29]. - The mobile internet revenue reached CNY 399.07 million, accounting for 19.59% of total revenue, with a year-on-year increase of 43.87% [29]. - Game product revenue was CNY 1.64 billion, representing 80.41% of total revenue, with a year-on-year decline of 18.37% [29]. User Engagement and Market Presence - The company has a total registered user base across its games, with active users defined as those logging in at least once a month [8]. - The company has successfully operated a cumulative active user base of 210 million and generated over 8.3 billion in revenue from its flagship game "全民奇迹" (Miracle of All People) [25]. - User data showed a total of 50 million active users across all platforms, with a 15% increase compared to the previous year [89]. - The company reported a significant increase in user engagement metrics, although exact numbers were not provided [129]. - The company is expanding its market presence in Southeast Asia, aiming for a 10% market share by the end of the next fiscal year [196]. Legal and Regulatory Matters - The company is involved in a significant lawsuit with a claim amount of 25 million yuan, which is expected to have a minimal impact on current or future profits [111]. - The arbitration case against Zhejiang Huanyou has a claim amount of approximately 48.16 million yuan, with the court recognizing and enforcing the arbitration award [112]. - The company has reported a claim amount of 5 million yuan in a trademark infringement case, with a provision of 1.4 million yuan recognized [115]. - The company has disclosed ongoing litigation and arbitration matters, with various updates provided throughout 2019 [113]. - The company has taken measures to freeze bank accounts and seize assets related to the ongoing disputes [112]. Management and Governance - The company has made commitments to avoid related party transactions with its controlling or actual controlling entities in the future [86]. - The company has established a long-term commitment to strictly adhere to the promises made regarding competition and related transactions [86]. - The company has communicated the regulatory issues to its board and management, ensuring accountability and compliance moving forward [136]. - The company has acknowledged inaccuracies in the 2018 annual report and has been subject to administrative penalties from the China Securities Regulatory Commission [134]. - The company plans to strengthen management to ensure stable operations following the detention of its actual controller [137]. Research and Development - The company has established a robust R&D system, enhancing overall efficiency and encouraging innovation within the team [25]. - The company plans to invest 500 million yuan in research and development for new technologies over the next three years [94]. - Research and development investments have increased by 20%, focusing on AI and machine learning technologies [196]. Shareholder and Equity Matters - The company did not declare any cash dividends, stock bonuses, or capital increases from reserves for the year [4]. - The company has not proposed any cash dividend distribution plans for the past three years, focusing instead on internal reinvestment strategies [75]. - The company reported a 36-month lock-up period for newly issued shares starting from the date of listing [79]. - The company has a commitment from Jin Danli regarding the lock-up of 29,642,075 shares, with a gradual release over 36 months [179]. - The company has not reported any new share acquisitions or disposals by its directors and senior management during the current period [183]. Social Responsibility and Community Engagement - The company actively fulfills social responsibilities, including providing quality services and protecting employee rights [155]. - The company invested 100,000 in poverty alleviation efforts in the Tahe community of Yunnan Province [157]. - The company has not been penalized for environmental violations during the reporting period [160].

Financial Performance - Operating revenue decreased by 28.11% to CNY 452,346,558.53 for the current period, and by 13.31% to CNY 1,503,882,521.97 year-to-date[9] - Net profit attributable to shareholders decreased by 79.51% to CNY 24,878,576.79 for the current period, and by 85.51% to CNY 71,341,153.45 year-to-date[9] - Basic earnings per share dropped by 83.33% to CNY 0.01 for the current period, and by 86.96% to CNY 0.03 year-to-date[9] - Total operating revenue for Q3 2019 was CNY 452.35 million, a decrease of 28.14% compared to CNY 629.22 million in the same period last year[50] - Net profit for Q3 2019 was CNY 43.23 million, a decline of 73.0% from CNY 159.91 million in Q3 2018[51] - The company reported an investment income of CNY 11.66 million, down from CNY 15.99 million year-over-year[51] - The company’s total comprehensive income for Q3 2019 was CNY 56.84 million, a decrease from CNY 146.71 million in Q3 2018[52] - The total profit before tax was ¥136,337,409.92, a decrease of 77.5% from ¥606,794,150.77 in the same period last year[59] Cash Flow - Net cash flow from operating activities decreased by 90.95% to CNY 27,407,830.61 for the current period, and by 97.85% to CNY 13,984,791.79 year-to-date[9] - Operating cash flow decreased by 97.85% to ¥13,984,791.79 due to increased consolidation of subsidiaries and higher R&D investments[21] - The net cash flow from operating activities for the current period is ¥13,984,791.79, a significant decrease of 97.85% compared to ¥651,757,816.48 in the previous period[66] - The total cash inflow from operating activities is ¥1,761,318,126.40, down 12% from ¥2,001,727,935.17 in the same period last year[65] - The cash outflow from operating activities totaled ¥1,747,333,334.61, an increase of 29.5% compared to ¥1,349,970,118.69 in the previous year[66] - The net cash flow from investment activities is -¥86,557,701.47, improving from -¥939,464,526.05 in the previous period[66] - The cash inflow from financing activities is ¥108,706,484.88, down 36.6% from ¥171,303,124.85 in the previous period[67] - The net cash flow from financing activities is -¥64,927,306.97, an improvement from -¥300,197,689.66 in the previous year[67] Assets and Liabilities - Total assets increased by 1.68% to CNY 6,168,330,374.80 compared to the end of the previous year[9] - Total current assets increased to ¥2,484,944,031.89 as of September 30, 2019, compared to ¥2,449,864,792.43 at the end of 2018, reflecting a growth of approximately 1.4%[41] - Total non-current assets increased to ¥3,683,386,342.91 from ¥3,616,525,024.24, marking an increase of about 1.9%[41] - Total current liabilities decreased to ¥837,970,096.43 from ¥922,623,365.99, a reduction of about 9.2%[42] - Total liabilities decreased to ¥881,425,513.17 from ¥954,121,264.29, reflecting a decline of approximately 7.6%[42] - Total equity increased to ¥5,286,904,861.63 from ¥5,112,268,552.38, showing an increase of about 3.4%[43] - The company reported a significant increase in long-term equity investments to ¥252,414,906.32 from ¥143,057,895.48, a growth of approximately 76.5%[41] Shareholder Information - The total number of shareholders at the end of the reporting period was 75,843[13] - The top shareholder, Wang Yue, held 21.44% of the shares, amounting to 461,570,064 shares[13] - The company did not engage in any repurchase transactions among the top shareholders during the reporting period[14] - The company has initiated a share repurchase program approved by the board and shareholders[25] - The company repurchased a total of 1,930,000 shares during the buyback period, accounting for approximately 0.09% of the total issued shares as of the announcement date[26] - The highest transaction price during the buyback was RMB 4.50 per share, while the lowest was RMB 4.05 per share, with a total transaction amount of approximately RMB 8.251 million[26] - The company has committed to invest no less than RMB 500 million in purchasing its own shares, but has not fulfilled this commitment as of the reporting date[28] Legal and Regulatory Matters - The company is involved in legal disputes, including a lawsuit from Tencent regarding copyright infringement[22] - The company received administrative regulatory measures from the Fujian Securities Regulatory Bureau, requiring certain shareholders to fulfill their commitments[28] - The company plans to extend the purchase period for its shares as per the supplementary agreement signed with Zhejiang Jiuling Network Technology Co., Ltd.[28] Other Financial Metrics - Non-recurring gains and losses totaled CNY 12,552,646.32 for the current period[11] - The company reported a fair value change of -RMB 9,861,029.7 for its financial assets during the reporting period[30] - The total amount of entrusted financial management was RMB 14.5 million, with an outstanding balance of RMB 5 million[34] - There were no violations regarding external guarantees during the reporting period[31] - The company did not have any non-operating fund occupation by controlling shareholders or related parties during the reporting period[32] - The company conducted investor relations activities on May 10, 2019, and July 18, 2019, as recorded in the investor relations activity log[35] Adjustments and Standards - The company has made adjustments to financial statements due to the implementation of new financial instrument standards and revenue recognition standards starting in 2019[71]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥1,051,535,963.44, a decrease of 4.89% compared to ¥1,105,557,526.69 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was ¥46,462,576.66, down 87.48% from ¥370,963,038.00 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥40,417,015.79, a decline of 88.69% compared to ¥357,403,801.45 in the same period last year[19]. - The net cash flow from operating activities was negative at ¥-13,423,038.82, a decrease of 103.85% from ¥348,800,841.83 in the previous year[19]. - Basic earnings per share were ¥0.02, down 88.24% from ¥0.17 in the same period last year[19]. - The company's total revenue for the reporting period was ¥1,051,535,963.44, a decrease of 4.89% compared to ¥1,105,557,526.69 in the same period last year[42]. - Operating costs increased by 19.92% to ¥334,203,505.52 from ¥278,677,106.59 year-on-year[42]. - Research and development expenses rose by 26.67% to ¥197,649,297.78, reflecting increased investment in innovation[42]. - The company's mobile internet revenue surged by 90.51% to ¥209,217,796.82, while game product revenue fell by 15.41% to ¥842,318,166.62[44]. - The gross margin for mobile internet revenue was 78.64%, while the gross margin for game products was 65.63%, reflecting a decrease of 8.60% year-on-year[45]. Assets and Liabilities - Total assets at the end of the reporting period were ¥6,138,872,128.74, an increase of 1.19% from ¥6,066,389,816.67 at the end of the previous year[19]. - The company's total liabilities decreased to ¥891,719,112.75 from ¥954,121,264.29 at the end of 2018, indicating a reduction in financial obligations[182]. - The cash and cash equivalents decreased to ¥755,000,104.62 from ¥880,828,424.72, reflecting a decline of approximately 14.2%[179]. - The company's total equity rose to ¥5,247,153,015.99 from ¥5,112,268,552.38, representing an increase of approximately 2.6%[182]. - The company's short-term borrowings decreased to ¥80,731,697.35 from ¥128,260,904.61, a reduction of approximately 37.0%[181]. Investments and Subsidiaries - The company has made significant investments in VR and big data intelligent processing centers as part of its high-tech internet strategy[27]. - The company has absorbed an industry-leading R&D team to increase its game project reserves[69]. - The company reported a net loss from its overseas subsidiary Kingnet Technology HK Limited during the reporting period[31]. - The company’s subsidiary, Shanghai Kaiying Network Technology Co., Ltd., reported a net profit of RMB 26,924,907, contributing significantly to the overall performance[75]. - The subsidiary, Zhejiang Shenghe Network Technology Co., Ltd., reported a net profit of RMB 82,793,050, further enhancing the company's financial position[76]. Legal and Compliance Issues - The company is currently facing legal issues involving its controlling shareholders and executives, with multiple investigations ongoing[149]. - The company has reported a significant litigation case involving a claim of 1,000,000 yuan, which has not yet formed a provision for liabilities[94]. - The company is involved in a dispute with Zhejiang Huanyou regarding the payment of contract amounts, leading to arbitration proceedings[95]. - The company has been ordered to publish a notice in a prominent position on its official website for 30 consecutive days to clarify facts and mitigate impact[105]. - The company is actively pursuing legal actions against competitors for unauthorized use of its intellectual property[105]. Market Position and Strategy - The company continues to explore new business opportunities in the rapidly changing internet industry, adapting its focus from social games to innovative mobile games[34]. - The gaming market is experiencing rapid expansion, with increasing competition as more entities enter the sector, driven by strong consumer demand for web and mobile games[82]. - The company is committed to deepening its gaming business while exploring new opportunities, aligning with a strategic focus on "gaming + content + high-tech internet" initiatives[83]. - The company is focused on talent retention, recognizing that skilled personnel are crucial for maintaining competitive advantage in the gaming and internet industries[82]. - The company is currently preparing for further legal actions as part of its strategy to defend its market position[111]. Shareholder and Equity Information - The actual controller, Mr. Wang Yue, holds 461,570,064 shares, accounting for 21.44% of the total shares, all of which are frozen[128]. - The company repurchased 1,930,000 shares, representing 0.09% of the total share capital, with a total transaction amount of approximately RMB 8.25 million[129]. - The total number of shares before the change was 2,152,517,634, with 942,559,620 shares subject to restrictions, representing 43.79% of the total[155]. - The number of unrestricted shares increased to 1,483,498,212, representing 68.92% of the total shares[155]. - The company’s shareholding structure includes 222,714,999 shares held by domestic legal persons, accounting for 10.35% of the total[155].

Financial Performance - The company's operating revenue for Q1 2019 was ¥670,780,906.61, representing a 6.73% increase compared to ¥628,469,578.18 in the same period last year[3]. - Net profit attributable to shareholders decreased by 64.15% to ¥88,392,215.74 from ¥246,577,134.24 year-on-year[3]. - The net profit after deducting non-recurring gains and losses was ¥80,643,558.90, down 65.53% from ¥233,922,986.57 in the previous year[3]. - The diluted earnings per share were ¥0.04, a decrease of 63.64% from ¥0.11 in the previous year[3]. - The weighted average return on equity was 1.82%, down from 4.99% year-on-year, a decrease of 3.17 percentage points[3]. - The company expects a net profit for the first half of 2019, with a year-on-year decline of over 50%, estimating a range of ¥11,000,000 to ¥16,500,000[18]. - Net profit for the period was CNY 100,636,474.93, compared to CNY 279,447,747.40 in the previous period, indicating a decrease of approximately 64%[35]. - Basic earnings per share for the period were CNY 0.04, down from CNY 0.11 in the previous period, indicating a decline of about 63.6%[36]. Cash Flow - The net cash flow from operating activities was negative at -¥3,821,219.19, a decline of 107.02% compared to ¥54,411,616.60 in the same period last year[3]. - The total cash inflow from operating activities was ¥714,441,059.46, an increase of 9.66% compared to ¥651,421,831.91 in the previous period[41]. - The cash outflow from operating activities totaled ¥718,262,278.65, up from ¥597,010,215.31, indicating a significant increase of approximately 20.25%[41]. - The net cash flow from operating activities was a negative ¥3,821,219.19, contrasting with a positive cash flow of ¥54,411,616.60 in the previous year[41]. - The cash inflow from investment activities was ¥150,654,724.18, compared to ¥111,913,161.46 in the previous period, marking an increase of approximately 34.69%[42]. - The cash outflow from investment activities was ¥412,307,430.31, up from ¥342,553,014.76, reflecting an increase of about 20.34%[42]. - The net cash flow from investment activities was a negative ¥261,652,706.13, worsening from a negative ¥230,639,853.30 in the previous year[42]. - The cash inflow from financing activities was ¥80,731,697.35, down from ¥111,900,000.00, indicating a decrease of approximately 27.86%[42]. - The net increase in cash and cash equivalents was a negative ¥272,297,136.35, compared to a negative ¥139,645,819.62 in the previous period, showing a worsening cash position[42]. - The net cash flow from operating activities for Q1 2019 was ¥3,450,848.29, a significant improvement compared to a net outflow of ¥10,161,481.70 in the same period last year[44]. - Cash inflows from operating activities totaled ¥21,245,138.54, up from ¥3,337,954.01 in Q1 2018, indicating a strong increase in operational efficiency[44]. Assets and Liabilities - Total assets at the end of the reporting period were ¥6,128,772,670.47, an increase of 1.03% from ¥6,066,389,816.67 at the end of the previous year[3]. - The total amount spent on share repurchases was approximately ¥8.251 million, which is below the planned minimum of ¥200 million due to prioritizing cash for core business operations[15]. - The total current assets amounted to CNY 2,510,008,226.16, an increase from CNY 2,449,864,792.43 as of December 31, 2018, representing a growth of approximately 2.4%[24]. - The total liabilities decreased to CNY 900,107,884.24 from CNY 954,121,264.29, showing a reduction of about 5.7%[27]. - The total equity attributable to shareholders increased to CNY 4,906,657,659.69 from CNY 4,803,007,816.44, marking an increase of approximately 2.2%[28]. - The total assets as of March 31, 2019, were CNY 6,128,772,670.47, compared to CNY 6,066,389,816.67 at the end of 2018, indicating an increase of approximately 1.0%[28]. - The total liabilities stood at ¥922,623,365.99, remaining stable compared to the previous year[46]. - Total liabilities amounted to ¥954,121,264.29, with non-current liabilities at ¥31,497,898.30[47]. - The total owner's equity was ¥8,016,366,363.12, with a capital reserve of ¥5,868,230,640.79[49]. Expenses - Operating costs increased by 106.39% to ¥281,017,391.91 from ¥136,155,171.48, mainly due to changes in the game operation model[12]. - Research and development expenses rose by 51.30% to ¥105,166,642.39 from ¥69,509,038.69, attributed to increased R&D investments and the consolidation of new subsidiaries[12]. - The company reported a significant increase in sales expenses to CNY 124,983,430.66 from CNY 111,402,691.26, an increase of approximately 12.2%[34]. - The investment income for the period was CNY 8,623,154.72, down from CNY 14,661,616.90, reflecting a decrease of about 41.5%[34]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 74,710[6]. - The company reported a 62.75% decrease in minority shareholders' profit to ¥12,244,259.19 from ¥32,870,613.16, attributed to a decline in net profit from non-wholly owned subsidiaries[13]. Other Information - The company reported government subsidies amounting to ¥11,116,843.91 during the reporting period[4]. - The company recorded a 459.01% increase in other comprehensive income, reaching -¥13,160,503.19, primarily due to the implementation of new financial instrument standards[11]. - The company has not reported any significant changes in its investment activities during the quarter[44]. - The first quarter report for 2019 was not audited[51]. - The company’s financial position remains stable with no significant changes in equity or debt levels reported[46]. - The company is expected to continue focusing on improving cash flow and operational efficiency in the upcoming quarters[44].

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2018, representing a year-on-year increase of 15%[15]. - The company's operating revenue for 2018 was ¥2,283,757,176.83, a decrease of 27.13% compared to ¥3,134,019,143.58 in 2017[21]. - The net profit for 2018 was reported at 300 million RMB, with a net profit margin of 25%[15]. - The net profit attributable to shareholders for 2018 was ¥174,385,320.33, representing a significant decline of 89.17% from ¥1,610,217,415.18 in 2017[21]. - The company reported a total revenue of ¥2,283,757,176.83 in 2018, a decrease of 27.13% compared to ¥3,134,019,143.58 in 2017[54]. - The mobile internet revenue significantly declined by 61.92%, amounting to ¥277,389,439.64, compared to ¥728,421,568.89 in 2017[54]. - The company reported a net profit of approximately ¥297 million, a decrease of 82.41% year-on-year, primarily due to a decline in revenue from previously operated game products and regulatory impacts[67]. - The company reported a total economic loss compensation of RMB 50 million in a legal case against Tencent[144]. User Engagement and Growth - The number of active users reached 10 million, with a monthly growth rate of 5%[15]. - The mobile game "全民奇迹" has accumulated nearly 200 million active users and total revenue surpassing 8 billion RMB, ranking among the top 10 in both iOS and Google Play revenue charts in South Korea and Thailand[44]. - The XY.COM gaming platform has nearly 120 million active users and a cumulative recharge amount exceeding 2.3 billion RMB, establishing itself as one of the top three web game operators in the industry[47]. - The company’s mobile application distribution platform, XY Apple Assistant, has over 220 million active users and a cumulative recharge amount exceeding 1.5 billion RMB[33]. - The user base in China reached 626 million, showing a year-on-year growth of 7.3%[100]. Product Development and Strategy - The company plans to launch three new games in 2019, aiming to increase user engagement by 20%[15]. - The company is investing 200 million RMB in R&D for new technologies and game development in 2019[15]. - The company is actively extending its core gaming business and platform operations, focusing on innovation and breakthroughs in the gaming and high-tech sectors[30]. - The company aims to launch new mobile games based on original IPs like "蓝月" and "征途" in 2019[39]. - The company is actively developing multiple H5 games and has obtained the authorized rights for "奇迹MU," indicating a strong focus on expanding its game portfolio[45]. - The company is focusing on technological development and service enhancement in the computer and network technology sectors to drive future growth[95]. - The company plans to leverage its existing user base and market trends to explore new product offerings and technological advancements in the gaming sector[98]. Mergers and Acquisitions - The company is exploring potential mergers and acquisitions to enhance its market position and product offerings[15]. - The company acquired a 71% stake in Zhejiang Shenghe Network Technology Co., enhancing its game development capabilities and core competitiveness[31]. - The company completed the acquisition of Zhejiang Jiuling Network Technology Co. with a 70% stake, focusing on H5 games and WeChat mini-games[31]. - The company acquired 70% of Zhejiang Jiuling Network Technology Co., Ltd. for RMB 106.4 million, with projected net profits of RMB 190 million, RMB 220 million, and RMB 290 million for 2018, 2019, and 2020 respectively[126]. - Zhejiang Jiuling's actual net profit for 2018 exceeded the forecast, achieving RMB 210.82 million[126]. - The company acquired 51% of Zhejiang Shenghe Network Technology Co., Ltd. for RMB 160.65 million, with projected net profits of RMB 250 million, RMB 310 million, and RMB 380 million for 2017, 2018, and 2019 respectively[127]. - Zhejiang Shenghe's actual net profit for 2018 also exceeded the forecast, achieving RMB 315.93 million[127]. Research and Development - The company is committed to continuous market observation to identify new mobile internet product opportunities and user behavior trends[44]. - The company has implemented a robust R&D system to enhance product quality and operational efficiency, ensuring a steady output of high-quality games[46]. - Research and development expenses were reported at RMB 481.47 million for 2018, reflecting a significant increase from RMB 231.05 million in 2017[130]. - The number of R&D personnel rose by 46.81% to 828, with R&D personnel now accounting for 61.56% of the workforce[64]. Legal and Regulatory Issues - The company is facing regulatory risks related to game approvals, which could significantly impact operations if licenses are not obtained or maintained[105]. - The company is involved in ongoing litigation regarding intellectual property rights, specifically related to the "Legend of Mir" game, which may impact future revenue streams[138]. - The company is actively pursuing legal actions against competitors for alleged copyright infringement, which could lead to potential financial recoveries[138]. - The company has reported a legal claim for economic damages amounting to 5,000,000 yuan related to the game "烈火战神" (Fire God) and is required to cease infringement and unfair competition[121]. - The company is actively defending its legal rights in multiple arbitration and litigation cases, including those related to intellectual property rights[143]. - The ongoing legal cases may impact the company's market operations and future product launches[145]. Shareholder and Dividend Policies - The company has no plans to distribute cash dividends or issue bonus shares for the year[6]. - The company reported a net profit attributable to ordinary shareholders of approximately ¥174.39 million in 2018, with a cash dividend amount of ¥0.00, resulting in a cash dividend payout ratio of 0.00%[112]. - The company did not propose any cash dividend distribution for 2018, citing the need to enhance operational capabilities and invest in core business development[113]. - The company has committed to not distributing cash dividends or increasing capital stock through capital reserves for the current fiscal year[114]. - The company is focused on long-term stability and growth, prioritizing reinvestment over immediate shareholder returns[113]. Market Expansion and Competition - Future guidance indicates expected revenue growth of 10-15% for 2019, driven by new product launches and market expansion[15]. - Market expansion efforts include targeting Southeast Asia, with a projected increase in user base by 30% in that region[15]. - The gaming and internet industry is experiencing intensified market competition, with increasing demand and potential entrants into the market[105]. - The company continues to follow the "game + content + high-tech internet" strategy to accelerate the development of its main gaming business and enhance core competitiveness[102]. Financial Management and Investments - The company has established a big data intelligent processing center to analyze massive data for product trend forecasting and personalized user recommendations[50]. - The company has ongoing projects with a total committed investment of 57,772 million yuan for the XY Apple Assistant International Version, which has not yet commenced[85]. - The company reported a total investment during the reporting period of approximately ¥1.14 billion, a decrease of 39.69% compared to the previous year[76]. - The company has a remaining balance of 55,882,777.75 yuan in its fundraising account, which is the net amount after deducting fees from interest income[83]. - The company has not made any changes to the use of raised funds during the reporting period[83]. Corporate Governance and Compliance - The company has established commitments to maintain operational independence and comply with corporate governance standards post-restructuring[121]. - The company is focused on maintaining transparency and compliance in all financial disclosures and related party transactions[120]. - The company has outlined its obligations to manage shareholder rights and responsibilities in accordance with relevant laws and regulations[121]. - The company has committed to ensuring that no related party transactions occur that could harm the interests of the company and its shareholders[120].

恺英网络股份有限公司 2018 年半年度报告全文 恺英网络股份有限公司 2018 年半年度报告 2018 年 08 月 1 恺英网络股份有限公司 2018 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和 连带的法律责任。 公司负责人王悦、主管会计工作负责人盛李原及会计机构负责人(会计主管 人员)王淑泉声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中如有涉及未来计划、业绩预测等前瞻性陈述，均不构成本公司对 任何投资者及相关人士的实质承诺，投资者及相关人士均应对此保持足够的风 险认识，并且应当理解计划、预测与承诺之间的差异。 公司存在的有关主要风险因素及应对措施已在本报告第四节"经营情况讨 论与分析"中"公司面临的风险和应对措施"详细阐述，敬请投资者注意阅读。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 重要提示、目录和释义 | | 2 | | --- | --- | --- | | 第二节 公 ...