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].

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].