Financial Performance - The company's revenue for Q3 2022 reached ¥815,682,717.81, representing a 23.14% increase year-over-year, and a total revenue of ¥2,825,312,548.81 for the year-to-date, up 71.23% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2022 was ¥286,522,763.73, a 27.65% increase year-over-year, with a year-to-date net profit of ¥913,853,936.06, reflecting an 82.21% increase[4] - The company's basic earnings per share for Q3 2022 was ¥0.14, up 27.27% year-over-year, and the diluted earnings per share was also ¥0.14, with a year-to-date figure of ¥0.43, an increase of 79.17%[4] - Operating income from non-operating income surged by 1432.90% to ¥530,280,556.01, largely due to increased compensation received from legal judgments[11] - The company reported a total comprehensive income of ¥1,212,969,680.02 for Q3 2022, compared to ¥693,391,746.95 in Q3 2021, an increase of 74.9%[22] Cash Flow - The net cash flow from operating activities for the year-to-date reached ¥1,221,744,429.99, a significant increase of 550.01% compared to the same period last year[4] - Net cash flow from operating activities increased by 550.01% to ¥1,221,744,429.99, driven by higher cash received from sales of goods and services[12] - Net cash flow from investing activities rose by 230.72% to ¥547,804,783.32, attributed to increased cash received related to investment activities[12] - Net cash flow from financing activities decreased by 81.26% to -¥317,849,223.37, mainly due to higher cash payments for dividends and interest[12] - Total cash inflow from operating activities is ¥3,159,963,071.88, compared to ¥1,577,829,326.44 in the previous period, indicating an increase of about 100%[24] - Cash outflow from operating activities totaled ¥1,938,218,641.89, up from ¥1,389,871,765.95, reflecting a rise of approximately 39.4%[24] - The net cash flow from financing activities is -¥317,849,223.37, worsening from -¥175,354,286.04 in the previous period[25] - The total cash and cash equivalents at the end of the period is ¥2,638,468,513.99, a substantial increase from ¥841,936,428.12 at the end of the previous period, reflecting a growth of approximately 213%[25] Assets and Liabilities - The total assets at the end of Q3 2022 were ¥5,938,874,230.17, a 34.99% increase from the end of the previous year[4] - The total liabilities increased to ¥1,300,338,569.74 from ¥650,557,127.03, indicating a growth of 99.5% year-over-year[19] - The total equity attributable to shareholders of the parent company rose to ¥4,359,812,093.97, up from ¥3,405,916,875.05, marking a 28.0% increase[19] - The company reported a total of ¥140,847,009.07 in contract liabilities, a 33.26% increase, indicating growth in advance payments related to revenue[9] - The company’s other payables increased by 490.57% to ¥553,578,953.91, primarily due to recognized litigation compensation payments[9] Expenses - The company reported a significant increase in research and development expenses, totaling ¥286,750,231.12 for the year-to-date, which is a 31.22% increase compared to the previous year[10] - The company experienced a 118.99% increase in sales expenses, amounting to ¥588,480,754.01 for the year-to-date, primarily due to increased marketing costs[10] - The company reported a decrease in income tax expenses by 32.68% to ¥31,890,944.99 due to reduced deferred income tax expenses[11] Investment Income - Investment income decreased by 99.44% to ¥272,561.26 due to reduced gains from long-term equity investments[11] - Fair value change income fell by 97.89% to ¥192,862.48, primarily due to changes in the fair value of trading financial assets[11]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥2,009,629,831, representing a 103.49% increase compared to ¥987,572,692.56 in the same period last year[11]. - The net profit attributable to shareholders for the first half of 2022 was ¥627,331,172.33, up 126.41% from ¥277,072,215.05 in the previous year[11]. - The net profit after deducting non-recurring gains and losses was ¥595,798,236.07, reflecting a 193.69% increase compared to ¥202,865,927.70 in the same period last year[11]. - The basic earnings per share for the first half of 2022 was ¥0.30, a 130.77% increase from ¥0.13 in the same period last year[11]. - The total comprehensive income for the first half of 2022 was CNY 823,708,325.75, compared to CNY 367,296,608.54 in the same period of 2021, reflecting a growth of 124.1%[92]. - The company reported a net loss from investments of ¥3,526,016.04, which accounted for -0.42% of total profit[28]. - The company reported a significant increase in sales expenses, which reached CNY 395,017,029.49, compared to CNY 192,950,425.92 in the previous year, reflecting a rise of 105.4%[91]. Assets and Liabilities - The total assets at the end of the reporting period were ¥5,444,212,410.08, which is a 23.74% increase from ¥4,399,599,882.51 at the end of the previous year[11]. - The total liabilities increased, with accounts payable reaching ¥519,057,206.01, a rise of 3.47% from the previous year, attributed to increased game revenue sharing and marketing expenses[30]. - The company's total liabilities were CNY 930,365,326.73, up from CNY 650,557,127.03, which is an increase of approximately 42.9%[88]. - The total current liabilities amounted to CNY 877,800,992.31, compared to CNY 583,456,838.91, which is an increase of approximately 50.5%[88]. - The company's cash and cash equivalents increased to ¥1,895,087,101.17, accounting for 34.81% of total assets, up from 26.77% the previous year[29]. Revenue Sources - Mobile games accounted for 97.24% of total revenue, amounting to ¥1,954,111,133.16, reflecting a 116.11% increase year-on-year[25]. - The self-developed games in the overseas market generated actual sales revenue of 8.989 billion USD, a year-on-year increase of 6.16%[16]. - The flagship game "Blue Moon Legend" has accumulated revenue exceeding 4 billion yuan since its launch[17]. - The company’s mobile internet product revenue includes income from mobile game distribution and software application distribution, recognized based on actual consumption[162]. Research and Development - Research and development expenses rose by 32.57% to ¥190,285,699.84, attributed to increased employee compensation in the R&D team[24]. - The company has a robust R&D system, with R&D investment accounting for 14.28% of operating revenue in 2021, amounting to ¥339 million[21]. - The company is actively developing new products, including the 3D open-world adventure game "Sea Country Record" and the sci-fi stealth action game "Evotinction"[20]. Risk Management - The company has outlined potential risks and countermeasures in the report, emphasizing the importance of risk awareness for investors[2]. - The company faces risks related to regulatory policies, intensified market competition, and potential core talent loss[42]. - The company is actively monitoring industry regulations to minimize potential policy risks[48]. Corporate Governance - The company does not have any securities or derivative investments during the reporting period[37]. - The company has not experienced any changes in its board of directors, supervisors, or senior management during the reporting period[45]. - The company has implemented stock option incentive plans, granting a total of 19.35 million stock options at an exercise price of 5.05 CNY per share[47]. Environmental and Social Responsibility - The company reported a carbon emission of 523,880.73 tons of CO2 equivalent in 2021, primarily from daily office electricity consumption[53]. - The company is committed to ESG principles and has initiated various public welfare projects, focusing on education for disadvantaged children[54]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 48,141, with a significant shareholder, Wang Yue, holding 20.46% of shares, totaling 440,330,064 shares[79]. - The chairman, Jin Feng, increased his holdings by 21,240,000 shares during the reporting period, bringing his total to 231,915,484 shares[81]. Legal Matters - The company is currently involved in significant litigation, including a case with a claim amount of CNY 1 million related to intellectual property disputes[57]. - The company’s subsidiaries were involved in significant litigation during the reporting period[73]. Financial Reporting - The half-year financial report has not been audited, indicating a lack of external validation for the reported figures[56]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status[106].

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].