Group 1: Business Segments - The company is advancing in three main business segments: internet gaming, automotive parts manufacturing, and cloud data services [2][4]. - The internet gaming segment has seen the successful launch of self-developed mobile games, such as "Celebration of the Year," which achieved significant rankings on iOS [2][4]. - The automotive parts manufacturing segment is expected to grow rapidly due to the explosive increase in new energy vehicle sales, with partnerships established with major companies like Tesla and BYD [5][8]. Group 2: Financial Performance - In the first half of 2022, the company achieved a revenue of 6.451 billion yuan and a net profit attributable to shareholders of 486 million yuan [5]. - The operating cash flow reached 1.204 billion yuan, showing a significant year-on-year increase [5]. - The company faced challenges in the first half of 2022 due to pandemic-related disruptions, but it is expected that financial performance will improve in the second half of the year [5][8]. Group 3: Strategic Initiatives - The company is focusing on micro-innovation in game categories to enhance its competitive edge in the gaming market [4][6]. - Collaborations with leading global publishers, such as Tencent, are aimed at expanding the reach of high-quality games in international markets [4][6]. - The cloud data segment is being positioned as a second growth curve, with ongoing projects like the Shenzhen data center expected to deliver services starting in 2023 [7][8]. Group 4: Product Development - Upcoming game releases include "Dragon Valley World," which has already received a license and is open for reservations [6]. - The company has a diverse pipeline of games targeting global markets, including titles like "Gods War" and "Lyra" [6]. - The company is also enhancing its product offerings in the cloud data sector, focusing on data security and customized data center services [7].

Financial Performance - The company's revenue for Q3 2022 was ¥2,691,196,350.55, a decrease of 22.59% compared to the same period last year[3]. - The net profit attributable to shareholders was ¥204,318,268.84, down 26.79% year-on-year, while the net profit after deducting non-recurring gains and losses was ¥165,827,269.92, a decrease of 29.43%[3]. - Basic earnings per share were ¥0.03, down 25.00%, and diluted earnings per share were also ¥0.03, reflecting a 25.00% decrease[3]. - Operating profit for the current period is ¥884,505,197.58, a significant decline of 76.32% compared to ¥3,741,358,330.92 in the previous period[15]. - Net profit for the current period is ¥717,615,595.02, down 75.32% from ¥2,910,276,243.72 in the previous period[15]. - Total comprehensive income for the current period is ¥1,537,832,292.81, down 45.4% from ¥2,821,866,408.61 in the previous period[15]. Assets and Liabilities - The total assets at the end of the reporting period were ¥41,351,963,301.40, representing a 1.75% increase from the end of the previous year[3]. - The company's total assets amounted to approximately CNY 41.35 billion, an increase from CNY 40.64 billion at the beginning of the year[11]. - The total liabilities decreased to approximately CNY 7.88 billion from CNY 8.49 billion, a reduction of about 7.2%[12]. - The company's total equity increased to approximately CNY 33.47 billion from CNY 32.15 billion, reflecting a growth of about 4.1%[13]. Cash Flow - The net cash flow from operating activities for the year-to-date was ¥1,459,587,719.23, an increase of 42.69% compared to the same period last year[3]. - The net cash flow from operating activities for the current period is ¥1,459,587,719.23, an increase of 42.7% compared to ¥1,022,894,311.85 in the previous period[17]. - Total cash inflow from operating activities decreased to ¥9,457,094,687.45, down 13.6% from ¥10,950,082,786.38 in the previous period[17]. - Cash outflow from investing activities resulted in a net cash flow of -¥1,924,612,387.34, compared to -¥922,855,388.61 in the previous period, indicating a significant increase in cash outflow[18]. - The cash and cash equivalents at the end of the period amounted to ¥1,663,540,237.00, down from ¥2,589,294,475.76 in the previous period[18]. Shareholder Information - The company had a total of 145,968 common shareholders at the end of the reporting period[7]. - Major shareholders included Wang Ji with a 10.22% stake and Linzhi Tencent Technology Co., Ltd. with a 10.00% stake[7]. Expenses - Total operating costs for the current period are ¥8,362,752,494.51, down 14.92% from ¥9,828,052,888.49 in the previous period[14]. - The company reported a decrease in sales expenses to ¥1,821,313,602.73 from ¥2,392,183,348.39, a reduction of 23.87%[14]. - Research and development expenses for the current period are ¥1,279,049,948.44, slightly down from ¥1,349,001,898.86, a decrease of 5.17%[14]. Investment Income - The company reported a significant decline in net profit due to lower investment income from the disposal of long-term equity in the previous year[6]. - The decrease in net profit after deducting non-recurring gains and losses was primarily attributed to a decline in internet gaming revenue[6]. - The company experienced a significant drop in investment income, reporting ¥19,067,833.01 compared to ¥2,524,618,509.57 in the previous period[14].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥6,450,560,761.41, a decrease of 11.75% compared to ¥7,309,528,720.67 in the same period last year[11]. - Net profit attributable to shareholders was ¥485,549,135.25, down 80.18% from ¥2,449,930,590.71 year-on-year[11]. - The net profit after deducting non-recurring gains and losses was ¥431,642,267.44, a decrease of 43.78% compared to ¥767,773,269.60 in the previous year[11]. - Basic earnings per share dropped to ¥0.07, down 78.79% from ¥0.33 in the previous year[11]. - The total operating revenue for the reporting period was CNY 6,450,560,761.4, representing a decrease of 11.75% compared to CNY 7,309,528,720.6 in the same period last year[35]. - The net profit for the first half of 2022 was CNY 513,335,031.85, a significant decline of 80.06% from CNY 2,571,198,775.83 in the previous year[126]. - The total comprehensive income for the first half of 2022 was CNY 894,779,879.80, down from CNY 2,467,316,752.06 in the previous year[126]. Cash Flow and Assets - The net cash flow from operating activities increased by 75.65% to ¥1,204,068,957.28 from ¥685,505,975.54 in the same period last year[11]. - The company's cash and cash equivalents at the end of the reporting period were CNY 2,321,185,166.83, which is 5.73% of total assets, down 1.73% from the previous year[39]. - The total assets at the end of the reporting period were ¥40,482,667,808.82, a slight decrease of 0.39% from ¥40,642,561,548.24 at the end of the previous year[11]. - The company's total current assets amounted to approximately CNY 7.70 billion, a decrease of 19.4% from CNY 9.57 billion at the beginning of the year[120]. - Cash and cash equivalents decreased to approximately CNY 2.32 billion from CNY 3.03 billion, representing a decline of 23.4%[120]. Investments and Projects - The company launched the mobile game "Celebration of the Year," which achieved significant rankings on various game charts[15]. - The company secured multiple new energy component projects with major automotive manufacturers, including BYD and NIO[15]. - The company is actively expanding its cloud data business, with significant projects in collaboration with Huawei Cloud and Tencent[15]. - The company has established a "Cloud Data Division" to manage and expand its internet data center and data security services, integrating multiple data center projects[22]. - The company has invested in advanced data center technologies, including energy-efficient cooling systems and AI optimization, to meet high standards for data security and energy efficiency[31]. Legal Matters - The company is involved in multiple lawsuits regarding copyright infringement related to its game "Legend" with claims amounting to 3,000 million and 500 million in separate cases[62]. - The company has ongoing litigation with claims of 9,000 million related to the use of its software rights by third parties[63]. - The company is actively pursuing legal actions to protect its intellectual property rights against various entities[62]. - The company has faced multiple legal challenges regarding its licensing agreements and the development of mobile and web games[62]. - The company is engaged in litigation with significant financial implications, reflecting its commitment to safeguarding its assets[63]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[2]. - The total number of shares before the recent changes was 7,452,556,968, with the current total remaining the same after adjustments[110]. - The largest shareholder, Wang Ji, holds 10.22% of the shares, totaling 93, with 3,967,530 shares in change during the reporting period[113]. - The total number of unrestricted shares after the recent changes is 5,259,340,244, representing 70.57% of the total shares[110]. - The company has a total of 761,977,900 ordinary shareholders, with 574,459,100 shares under limited sale conditions[113]. Environmental and Social Responsibility - The company strictly adheres to environmental protection laws and has implemented effective resource management and environmental protection measures, including the ISO 14000 environmental management system[55]. - The company has actively promoted green office practices, including paperless operations and waste classification, to reduce environmental impact[56]. - The company has engaged in social responsibility initiatives, including donations and volunteer activities focused on vulnerable groups, and released its first ESG report in April 2022[58]. - The company has committed to donating funds for rural public welfare construction and supporting communities in need since 2021[58]. Future Outlook and Strategy - The company emphasizes the importance of risk awareness regarding future plans and strategies[2]. - The company is focusing on talent development to meet the growing demand for skilled personnel amid its expansion and transformation[49]. - The company aims to improve management and innovation capabilities to maintain competitive advantages in the rapidly evolving market[49]. - The company is exploring potential mergers and acquisitions to bolster its market position and expand its product offerings[73]. - Future outlook includes continued legal battles that may impact financial performance and operational strategies[74].

Business Transformation and Expansion - The company reported a significant business transformation from automotive parts to dual main businesses: automotive parts and internet gaming, following major asset acquisitions from 2014 to 2019[10]. - In 2021, the company expanded its main business to include an internet data center segment, with projects in Shenzhen and a partnership with Tencent for an AI advanced computing center[10]. - The company has established a "Cloud Data Division" in March 2022 to further enhance its data center capabilities[10]. - The company has integrated its subsidiaries into an internet gaming division to enhance management efficiency and business collaboration[24]. - The company aims to replicate the operational experience of the Tencent Yangtze River Delta AI Advanced Computing Center across key regions in China[26]. - The company is actively responding to the national "East Data West Computing" strategy to support digital infrastructure development[36]. - The company has initiated the establishment of a "Cloud Data Division" to integrate its internet data center and data security businesses, responding to national digital development policies[76]. Financial Performance - The company's operating revenue for 2021 was ¥13.93 billion, a decrease of 7.03% compared to ¥14.98 billion in 2020[12]. - The net profit attributable to shareholders for 2021 was ¥2.33 billion, down 21.03% from ¥2.95 billion in 2020[12]. - The net cash flow from operating activities was ¥890.44 million, a significant decline of 71.94% from ¥3.17 billion in 2020[12]. - The total assets at the end of 2021 were ¥40.64 billion, a decrease of 4.92% from ¥42.75 billion at the end of 2020[13]. - The net assets attributable to shareholders increased by 7.48% to ¥31.08 billion at the end of 2021, compared to ¥28.92 billion at the end of 2020[13]. - The company reported a basic earnings per share of ¥0.32 for 2021, down 20% from ¥0.40 in 2020[12]. - The total revenue for 2021 was approximately 13.93 billion yuan, a decrease of 7.03% compared to 2020[38]. Gaming Market Insights - The gaming market in China generated actual sales revenue of ¥296.51 billion in 2021, reflecting a year-on-year growth of 6.4%[21]. - The overseas market for Chinese self-developed games reached $18.01 billion in 2021, with a year-on-year increase of 16.59%[21]. - The internet gaming business generated revenue of 11.662 billion yuan, with mobile game revenue accounting for 72.08%[33]. - The gaming segment has a rich IP reserve, including popular titles like "Legend of Blood" and "Dragon Valley," contributing to sustained revenue[28]. - The company’s self-developed game "Family Farm Adventure" ranked 23rd in the "Overseas Revenue Growth" list by Data.ai in March 2022[34]. Research and Development - Research and development expenses amounted to 1.966 billion yuan in 2021, reflecting the company's commitment to innovation and product development[37]. - The number of R&D personnel increased to 4,008, a growth of 7.89% from 3,715 in the previous year[51]. - The company is continuously developing new game titles, including "Lyra," "Qing Yu Nian," and "Legend of the World," to enhance product quality and competitiveness[49]. - The R&D department has filed for 10 new patents related to gaming technology, aiming to enhance user experience and gameplay mechanics[95]. Strategic Partnerships and Collaborations - The company signed a strategic cooperation agreement with Tencent Cloud in October 2021 to enhance its internet data center business and expand its market presence[36]. - The company is collaborating with Weishitong to enhance data security compliance services, addressing the growing demand in the data security market[27]. - The company is exploring partnerships with international gaming firms to leverage global market opportunities[95]. Corporate Governance and Compliance - The company maintained compliance with corporate governance regulations, with no unresolved governance issues reported[81]. - The company has established independent operational systems, ensuring no reliance on major shareholders for business activities[82]. - The company’s financial department operates independently, with a complete financial accounting system in place[82]. - The company has committed to avoiding competition with its controlling shareholders and related parties in its business operations[142]. Sustainability and Social Responsibility - The company has committed approximately RMB 4.59 million to various charitable activities, including RMB 2.29 million for elderly care and RMB 500,000 for disaster relief in Henan[139]. - The company is actively pursuing green initiatives, including the development of a low-carbon digital solution for data centers, in line with the "dual carbon" policy[136]. - The company has implemented a paperless office initiative to reduce resource consumption and promote sustainability[137]. Future Outlook and Growth Strategies - The company provided a positive outlook for 2022, projecting a revenue growth of 25% driven by new game releases and market expansion efforts[95]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[196]. - A strategic acquisition of a local competitor was completed, expected to contribute an additional 100 million RMB in annual revenue[199]. - The company plans to implement a new marketing strategy aimed at increasing brand awareness, with a budget allocation of 100 million RMB for digital marketing campaigns[160].

Financial Performance - The company's operating revenue for Q1 2022 was ¥3,520,299,773.65, a decrease of 11.92% compared to ¥3,996,784,677.73 in the same period last year[4] - Net profit attributable to shareholders was ¥208,848,805.13, down 64.29% from ¥584,798,447.44 year-on-year[4] - Basic and diluted earnings per share were both ¥0.03, a decrease of 62.50% from ¥0.08 in the same period last year[4] - The company reported a decrease in comprehensive income total to CNY 171.22 million, compared to CNY 702.54 million in Q1 2021[17] - The net profit for Q1 2022 was CNY 226.04 million, a significant decline of 64% from CNY 634.29 million in Q1 2021[17] - The total operating costs amounted to CNY 3.29 billion, slightly down from CNY 3.33 billion in the previous year[16] - The company recorded a decrease in sales revenue from services received, totaling CNY 3.09 billion, compared to CNY 3.28 billion in Q1 2021[19] Cash Flow and Liquidity - The net cash flow from operating activities increased by 52.98% to ¥220,947,709.35, compared to ¥144,433,409.90 in the previous year[4] - The company's cash and cash equivalents at the end of the quarter were CNY 2,466,648,716.31, down from CNY 3,031,214,132.91 at the beginning of the year, representing a decrease of 18.7%[12] - The net cash flow from investment activities was -573,273,826.00, a decrease from -810,569,117.57 in the previous year, indicating improved cash management[20] - The net cash flow from financing activities was -232,001,927.24, an improvement from -247,594,725.47 year-over-year[20] - The cash and cash equivalents at the end of the period were 2,033,099,549.88, down from 2,226,246,115.60 at the end of the previous year[20] - The net decrease in cash and cash equivalents was -592,585,873.56, compared to -915,826,756.25 in the previous year[20] Assets and Liabilities - Total assets at the end of the reporting period were ¥40,705,801,885.78, reflecting a slight increase of 0.16% from ¥40,642,561,548.24 at the end of the previous year[4] - The company's total liabilities were CNY 8,456,155,744.84, a slight decrease from CNY 8,488,744,546.21[14] - The total non-current assets increased to CNY 31,591,113,381.31 from CNY 31,074,372,912.89, marking an increase of 1.66%[13] Shareholder Information - Shareholders' equity attributable to the parent company was ¥31,236,324,939.49, up 0.50% from ¥31,082,287,518.77 at the end of the previous year[4] - The total number of ordinary shareholders at the end of the reporting period was 136,908[8] - Major shareholders included Wang Ji with a 10.22% stake and Linzhi Tencent Technology Co., Ltd. with a 10.00% stake[8] Strategic Initiatives - The company signed a strategic cooperation framework agreement with ZTE Corporation to collaborate in data centers, industrial park development, and 5G edge computing, effective for three years[13] - The company plans to repurchase shares as approved in the recent shareholder meeting, indicating a strategy to enhance shareholder value[11] Expenses and Investments - Research and development expenses were CNY 413.61 million, down from CNY 470.53 million year-over-year[16] - The investment income for the quarter was CNY 10.16 million, a decrease from CNY 40.68 million in the same period last year[16] - Financial expenses decreased to CNY 72.78 million from CNY 143.08 million year-over-year[16]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥7,309,528,720.67, representing a decrease of 5.90% compared to the same period last year[10]. - The net profit attributable to shareholders of the listed company was ¥2,449,930,590.71, an increase of 52.88% year-on-year[10]. - The net profit after deducting non-recurring gains and losses was ¥767,773,269.60, down 49.39% from the previous year[10]. - The net cash flow from operating activities was ¥685,505,975.54, an increase of 14.25% compared to the same period last year[10]. - Basic earnings per share increased to ¥0.33, up 50.00% from ¥0.22 in the previous year[10]. - The total profit for the first half of 2021 was CNY 3,339,411,756.81, compared to CNY 1,866,732,997.10 in the previous year, marking an increase of 78.7%[136]. - The company reported a net profit of CNY 1,602,496,782.34 for the first half of 2021, indicating strong financial performance[154]. Revenue Breakdown - The company's internet gaming revenue accounts for over 85% of total revenue, indicating a strong market position in the gaming industry[18]. - The revenue from the software services sector was ¥6,227,519,546.30, accounting for 85.20% of total revenue, but decreased by 7.00% year-on-year[27]. - The automotive parts segment saw a revenue increase of 19.00% to ¥794,154,407.78, contributing 10.86% to total revenue[27]. Investment and Assets - Total assets at the end of the reporting period were ¥39,932,798,645.22, a decrease of 6.58% from the end of the previous year[10]. - The net assets attributable to shareholders of the listed company increased by 8.10% to ¥31,262,342,259.43 compared to the end of the previous year[10]. - The fair value of financial assets at the end of the period was ¥7,541,973,982.73, with a fair value change gain of ¥113,120,734.98 during the reporting period[33]. - The total assets of the company were reported at CNY 31,849,933,082.39, indicating a robust asset base[152]. Cash Flow Management - The net cash flow from operating activities was ¥685,505,975.54, reflecting a 14.25% increase year-on-year[26]. - The net increase in cash and cash equivalents was a decrease of 0.51% to -¥735,159,568.86, indicating stable cash flow management despite operational challenges[26]. - The company reported a net cash outflow from investing activities of ¥854,273,648.47, a significant improvement of 82.94% compared to the previous year[26]. - Cash and cash equivalents at the end of the period totaled ¥2,406,913,302.99, up from ¥1,971,271,863.49 at the end of the first half of 2020[144]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[2]. - The company aims to enhance its competitive strength through strategic acquisitions, such as the merger with Shengyue Network in 2019[18]. - The company is actively exploring cloud gaming technologies to capitalize on the growing market demand driven by 5G[22]. - The company plans to focus on market expansion and new product development to enhance future growth prospects[150]. Legal and Compliance Issues - The company is facing risks from increased regulatory scrutiny in the internet gaming industry, which could adversely affect its operations if it fails to meet new policy requirements[42]. - The company is involved in multiple lawsuits with a total disputed amount of approximately 717,739,000 CNY (about 100 million USD) related to copyright and contractual agreements[63]. - The company has reported no significant impact from the ongoing litigation on its financial performance as of the reporting date[66][67][68]. - The company has not recognized any contingent liabilities related to these lawsuits[66][67][68]. Human Resources and Management - The company is experiencing a growing demand for talent in management, finance, and technology due to its expanding production scale and industry transformation[43]. - The company has established a comprehensive human resources management system to protect employee rights and ensure compliance with labor laws[53]. - The company emphasizes the importance of internal management as it continues to expand through mergers and acquisitions[45]. Environmental and Social Responsibility - The company adopts the ISO14000 environmental management system, actively responding to national energy-saving and emission reduction policies, and aims to achieve sustainable development[54]. - The company has committed to social responsibility and actively participates in public welfare, supporting local education, culture, health, and poverty alleviation efforts[54]. Related Party Transactions - The company reported a related party transaction amounting to 215.72 million yuan, which accounted for 27.5% of similar transactions[91]. - The company’s related party transactions are primarily based on market pricing principles[91]. - The company has established a 5% ownership relationship with Tencent in its related party transactions[91]. Financial Reporting and Compliance - The financial report for the first half of 2021 was not audited[127]. - The company follows the accounting standards set by the Ministry of Finance and the China Securities Regulatory Commission, ensuring compliance and transparency in financial reporting[166]. - The company’s financial statements reflect a commitment to continuous operation and adherence to accounting principles[169].