上海姚记科技股份有限公司 2022 年第一季度报告全文 1 证券代码：002605 证券简称：姚记科技 公告编号：2022-021 上海姚记科技股份有限公司 2022 年第一季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没 有虚假记载、误导性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准 确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带 的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声 明：保证季度报告中财务信息的真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | |-----------------------------------------------------|------------------|------------------|---------------------------| | | 本报告期 | 上年同 ...

Financial Performance - The company reported a total revenue of 404.26 million RMB for the year 2021, representing a year-on-year increase of 15%[7] - The net profit attributable to shareholders was 60.64 million RMB, which is a 20% increase compared to the previous year[7] - The company's operating revenue for 2021 was ¥3,807,248,679.18, representing a 48.61% increase compared to ¥2,561,895,757.44 in 2020[30] - The net profit attributable to shareholders for 2021 was ¥573,685,416.17, a decrease of 47.53% from ¥1,093,361,472.30 in 2020[30] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥506,261,946.55, down 10.87% from ¥567,975,979.87 in 2020[30] - The basic earnings per share for 2021 was ¥1.4304, a decline of 47.89% compared to ¥2.7450 in 2020[30] - The company's net profit for 2021 was ¥67,423,469.62, a decrease from ¥525,385,492.43 in 2020, indicating a substantial decline in profitability[39] - The company reported quarterly revenues of ¥981,142,310.13 in Q1, ¥1,013,931,789.81 in Q2, ¥921,653,571.67 in Q3, and ¥890,521,007.57 in Q4 of 2021[35] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 3.00 RMB per 10 shares, totaling approximately 12.12 million RMB[7] - The company is committed to enhancing shareholder value, with plans to increase dividends by 10% in the upcoming fiscal year[184] User Engagement and Market Expansion - User data showed an increase in active users by 25% year-on-year, reaching 1.5 million active users by the end of 2021[7] - The company is focusing on expanding its market presence in Southeast Asia, targeting a 30% growth in that region for 2022[7] - The company aims to improve operational efficiency, targeting a reduction in costs by 8% through process optimization[184] - The company is expanding its market presence, targeting an increase in market share by 5% in the next year[184] Product Development and R&D - New product launches are expected to contribute an additional 50 million RMB in revenue in 2022[7] - The company has invested 20 million RMB in R&D for new technologies, aiming to enhance product offerings and user experience[7] - Research and development efforts are being intensified, with an investment of 100 million yuan aimed at developing new technologies[184] - The company is committed to increasing R&D investment, particularly in 3D game development, to improve product quality and user experience[141] Strategic Acquisitions and Investments - The company is exploring potential acquisitions to strengthen its market position, with a budget of 100 million RMB allocated for this purpose[7] - There are plans for strategic acquisitions to enhance product offerings and market reach, with a budget of 300 million yuan allocated for this purpose[184] Risk Management - The company identified key risks including market competition and regulatory changes, with strategies in place to mitigate these risks[7] - The company faces regulatory risks in the mobile internet gaming business, with potential increases in approval thresholds for game products, which could adversely affect operations if not complied with[149] - The company acknowledges risks related to raw material supply and price fluctuations, particularly its reliance on a single supplier for essential materials[152] - The company has established exclusive purchase agreements with Chenming Paper Industry to mitigate risks associated with reliance on a single supplier, ensuring that the paper products for playing cards are not sold to other users during the contract period[155] Marketing and Advertising - The internet marketing segment focuses on data-driven advertising solutions, utilizing CPC and CPM models to optimize advertising effectiveness for clients in various industries[59] - The company will continue to enhance its short video marketing strategy, optimizing existing information flow advertising and expanding coverage across various media platforms[145] Corporate Governance and Management - The company has established an internal audit system to oversee financial reporting and internal controls, enhancing risk management[169] - The company has a complete organizational structure with independent departments for operations, R&D, sales, finance, and human resources[170] - The board of directors consists of seven members, including three independent directors, ensuring compliance with legal requirements[170] Subsidiaries and Investments - The subsidiary Qidong Yaoki Poker Industry Co., Ltd. reported a net profit of 49.47 million RMB, contributing 0.98% to the company's total net profit[133] - Zhejiang Wanshengda Poker Co., Ltd. generated a net profit of 56.17 million RMB, also contributing significantly to the company's financial performance[133] - Shanghai Chengxi Information Technology Co., Ltd. achieved a net profit of 387.77 million RMB, indicating strong performance in the gaming industry[133] Financial Management - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 5.2243 million yuan[192] - The company has independent financial management with a dedicated finance department and a separate bank account, ensuring no interference from shareholders in financial decisions[170]

上海姚记科技股份有限公司 2021 年第三季度报告 1 证券代码：002605 证券简称：姚记科技 公告编号：2021-115 上海姚记科技股份有限公司 2021 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没 有虚假记载、误导性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准 确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带 的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声 明：保证季度报告中财务信息的真实、准确、完整。 3.第三季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | --- | |------------------------------------------------------|------------------|-------------------------|--------------------------|---- ...

Financial Performance - The company reported a total revenue of 1.2 billion yuan for the first half of 2021, representing a year-on-year increase of 15% compared to the same period in 2020[22]. - The company achieved operating revenue of CNY 1,995,074,099.94, representing a year-on-year increase of 95.84%[39]. - The company reported a net profit margin of 10% for the first half of 2021, maintaining a stable profitability level compared to the previous year[22]. - The net profit attributable to shareholders was CNY 367,008,668.29, a decrease of 54.15% compared to the previous year[39]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 326,602,179.96, an increase of 17.19% year-on-year[39]. - The company reported a net cash flow from operating activities of CNY 201,444,576.34, down 27.68% from the previous year[39]. - The total assets at the end of the reporting period were CNY 3,940,036,253.80, an increase of 1.38% compared to the end of the previous year[39]. - The company’s revenue for the reporting period reached ¥1,995,074,099.94, a 95.84% increase compared to ¥1,018,729,759.17 in the same period last year, primarily due to the acquisition of an 88% stake in Luming Technology in July 2020[65]. - The cost of sales increased by 242.36% to ¥1,179,975,799.67 from ¥344,660,350.10, attributed to the consolidation of Luming Technology and growth in both the poker and gaming segments[68]. - The software segment reported a revenue of ¥639,909,177.20, with a year-on-year increase of 9.76%[71]. - The gross profit margin for the internet marketing segment was only 4.98%, despite significant revenue growth[71]. User Growth and Market Expansion - User data showed an increase in active users by 20% year-on-year, reaching 5 million active users by June 30, 2021[22]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2022[22]. - The company has over 70 million registered users for its domestic mobile game products and over 186 million for its WeChat mini-games[40]. - The overseas game products have been released in over 100 countries and regions, with a total of over 25 million registered users[40]. - The mobile gaming industry is projected to reach a revenue of CNY 217.7 billion in 2022, with a compound annual growth rate (CAGR) of 15.9% from 2017 to 2022[45]. - The mobile game user base in China reached 516 million by the end of 2020, with a 2.4% year-on-year decline, emphasizing the importance of retaining existing users[45]. Research and Development - The company has allocated 100 million yuan for research and development of new technologies in gaming and entertainment[22]. - The company is actively increasing R&D investment and is developing a 3D game version to enhance product offerings[40]. - Research and development expenses rose by 69.66% to ¥87,962,425.17 from ¥51,845,142.11, driven by an increase in the number of R&D personnel[68]. - The company is committed to increasing R&D efforts and focusing on high-quality game development to enhance market competitiveness[99]. - The company has strengthened its talent pool by combining internal training with external recruitment, enhancing its R&D and management capabilities[64]. Strategic Initiatives - New product launches are expected to contribute an additional 200 million yuan in revenue for the second half of 2021[22]. - The company is exploring strategic acquisitions to enhance its product offerings and market reach, with a budget of 300 million yuan for potential acquisitions[22]. - The company is focused on expanding its market presence through new subsidiaries and investments in technology[94]. - The company has established a data-driven marketing and operational system in the mobile gaming sector, enhancing user acquisition and retention through precise market strategies[63]. Risks and Challenges - The management highlighted potential risks including market competition and regulatory changes, which could impact future performance[6]. - The company faces risks related to reliance on third-party distribution channels for game releases, which could significantly impact business performance if relationships deteriorate[102]. - The company has a significant dependency on a single supplier for raw materials in its playing card business, which poses risks if the supplier faces operational issues[102]. - The company acknowledges the potential impact of regulatory changes on its playing card business and is prepared to adapt accordingly[102]. - The company is addressing cybersecurity risks by enhancing network security measures and collaborating with leading cloud service providers[99]. Marketing and Advertising - The internet innovation marketing segment focuses on information flow advertising and content marketing, providing online marketing solutions for over 500 major clients across various industries, including Tencent and Alibaba[44]. - The company has a professional video production team and diverse shooting scenes to meet client needs for high-quality advertising content[44]. - The marketing business leverages a strong video production team and a proprietary advertising platform, optimizing ad performance and increasing client ROI through data-driven strategies[62]. - The digital marketing sector in China is expected to grow by 20% in 2021, reflecting increased confidence among advertisers despite market uncertainties[56]. Shareholder and Equity Information - The company will not distribute cash dividends or issue bonus shares for the current fiscal year[7]. - The company reported a 24.45% investor participation rate in the first extraordinary general meeting of 2021, held on January 13, 2021[112]. - The company has completed the exercise of 1,615,900 stock options under its 2018 stock option plan, with 155,800 options exercised in the first half of 2021[115]. - The company granted a total of 402,000 stock options to 3 incentive targets under the 2018 stock option and restricted stock incentive plan, with an adjusted exercise price of RMB 9.41 per share[117]. - The company plans to repurchase shares with a total amount not less than RMB 30 million and not exceeding RMB 60 million, with a maximum price of RMB 35 per share[185]. Subsidiaries and Investments - The company established several new subsidiaries during the reporting period, including Chongqing Huasheng Xintong Company and Anhui Yaoji Company, with no significant impact on overall operations[94]. - The company has provided joint liability guarantees for various subsidiaries, with the largest guarantee amount being 15,000,000 for Qidong Yaoji Poker Industry Co., Ltd.[164]. - The company has entrusted financial management with a total amount of 1,900,000, with no overdue amounts or impairment provisions[171]. Corporate Governance - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[199]. - The company has not reported any changes in the shareholding of directors, supervisors, and senior management during the reporting period[198].

上海姚记科技股份有限公司 2021 年第一季度报告全文 上海姚记科技股份有限公司 2021 年第一季度报告 2021 年 04 月 1 上海姚记科技股份有限公司 2021 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人姚朔斌、主管会计工作负责人姚朔斌及会计机构负责人(会计主 管人员)梁美锋声明：保证季度报告中财务报表的真实、准确、完整。 2 上海姚记科技股份有限公司 2021 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | |-----------------------------------------------------|------------------|------------------|---------------------------| | □ 是 √ 否 | 本报告期 ...

上海姚记科技股份有限公司 2019 年年度报告全文 上海姚记科技股份有限公司 2019 年度报告（更新后） 2020 年 04 月 1 上海姚记科技股份有限公司 2019 年年度报告全文 第一节重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人姚朔斌、主管会计工作负责人姚朔斌及会计机构负责人(会计主 管人员)唐霞芝声明：保证年度报告中财务报告的真实、准确、完整。 除下列董事外，其他董事亲自出席了审议本次年报的董事会会议 未亲自出席董事姓名 未亲自出席董事职务 未亲自出席会议原因 被委托人姓名 殷建军 独立董事 疫情防控 潘斌 本报告所涉及的公司未来计划、发展战略等前瞻性陈述，不构成公司对投 资者的实质承诺，请投资者注意投资风险。 公司在本报告"第四节 经营情况讨论与分析/九、公司未来发展的展望"部分， 详细描述了公司经营中可能存在的相关风险，敬请广大投资者注意投资风险。 公司经本次董事会审议通过的利润分配预案为：以 399,885,036 为基数，向 全体股东每 10 股派发现 ...

Financial Performance - The company reported a total revenue of 400,434,990 RMB for the year 2020, with a cash dividend distribution of 5 RMB per 10 shares to all shareholders[7]. - The company's operating revenue for 2020 was ¥2,561,895,757.44, representing a 47.52% increase compared to ¥1,736,595,927.84 in 2019[31]. - The net profit attributable to shareholders for 2020 was ¥1,093,361,472.30, a significant increase of 217.06% from ¥344,842,563.11 in 2019[31]. - The basic earnings per share for 2020 was ¥2.7450, a 215.88% increase from ¥0.8690 in 2019[31]. - The total assets at the end of 2020 were ¥3,886,358,589.27, reflecting a 28.65% increase from ¥3,020,971,880.60 at the end of 2019[31]. - The net profit for 2020 was achieved despite the challenges posed by the market, indicating resilience in the company's operations[176]. - The total profit reached 1,307.27 million CNY, up 161.26% compared to the previous year, while the net profit attributable to shareholders was 1,093.36 million CNY, reflecting a growth of 217.06%[65]. - The company reported a significant increase in net profit from CNY 159,954,014.40 in 2019 to CNY 200,217,495 in 2020, marking a growth of approximately 25.2%[171]. Risk Management - The company has outlined potential risks and future development strategies in the report, highlighting the need for investors to be aware of investment risks[6]. - The company acknowledges risks related to regulatory policies and market competition in the mobile internet gaming sector and is taking measures to mitigate these risks[143]. - The company faces risks related to network security, including potential disruptions from infrastructure failures and cyberattacks, and is taking measures to strengthen security protocols[146]. - The company is at risk of intellectual property infringement, which could negatively impact operations and revenue, and has a dedicated legal team to protect its IP rights[146]. - The company is exposed to raw material price fluctuations and supply risks in its poker business, particularly due to reliance on a single supplier[149]. - The company has implemented a comprehensive credit risk management strategy to mitigate potential losses from trade receivables[148]. Corporate Governance and Transparency - The company emphasized the importance of accurate financial reporting, with the management team ensuring the completeness and truthfulness of the annual report[5]. - The company has committed to maintaining transparency in its financial disclosures through various media outlets[25]. - The management team is led by Yao Shuo Bin, who is responsible for overseeing the company's financial integrity[5]. - The company has established a dedicated investor relations email for communication with stakeholders, enhancing engagement and transparency[24]. - The company confirmed that all documents related to the transaction are true, accurate, and complete, with no misleading statements or omissions[197]. Subsidiaries and Acquisitions - The company has a comprehensive list of subsidiaries and affiliated companies, indicating a diversified business structure[16]. - The company acquired the remaining 88% stake in Luming Technology, which became a wholly-owned subsidiary, enhancing its innovative marketing capabilities[65]. - The company completed the acquisition of 53.45% equity in Shanghai Chengqi Information Technology Co., Ltd., with a total payment of RMB 5,000 million[118]. - The company has established multiple new subsidiaries during the reporting period, with no significant impact on overall operations or net profit[136]. Investment and R&D - The company invested 137.66 million CNY in R&D, accounting for 5.37% of total revenue, and successfully applied for 50 software copyrights and 28 trademark copyrights[65]. - The company is focusing on AI technology to enhance content production capabilities, which is becoming a competitive advantage in the marketing sector[51]. - The company will increase R&D investment in H5 games, WeChat mini-program games, and 3D effects, aiming to upgrade existing mobile game products and develop new high-quality mobile games[140]. Marketing and Business Strategy - The company’s mobile gaming business focuses on developing and operating casual and nurturing games, with key titles including "Finger Fishing" and "Fishing Blast" that have strong player retention[45]. - The company aims to enhance brand influence and operational efficiency by integrating its poker and mobile game businesses, targeting younger consumer demographics[56]. - The company is actively expanding into overseas markets, aiming to export more high-quality gaming products[60]. - The company will explore new marketing strategies, including short video marketing and e-commerce live streaming, to expand its digital marketing footprint[140]. Shareholder Engagement - The company plans to distribute cash dividends of RMB 5 per 10 shares for 2020, totaling approximately RMB 200.22 million[166]. - The company has a three-year shareholder return plan (2018-2020) to ensure stable and continuous profit distribution policies[166]. - The company reported a commitment from major shareholders not to transfer or delegate management of their shares for 36 months post-IPO[188]. Employee Development - The company has a total of 1,655 employees, including 52 master's degree holders and 545 bachelor's degree holders, enhancing its core competitiveness through talent development[61]. - The company emphasizes the importance of retaining core management and technical personnel, which is crucial for its success[152]. - The company is focused on attracting and retaining high-end talent to address challenges arising from expansion[152].

Financial Performance - Net profit attributable to shareholders rose by 45.26% to CNY 184,511,312.08 in Q3 2020, with a year-to-date increase of 256.66% to CNY 984,978,324.31[9] - Operating revenue for Q3 2020 reached CNY 796,258,780.49, a 71.93% increase year-on-year, with year-to-date revenue up 41.56% to CNY 1,814,988,539.66[9] - Basic earnings per share increased by 44.78% to CNY 0.4636 for Q3 2020, and year-to-date earnings per share rose by 256.38% to CNY 2.4786[9] - The company reported a net profit of ¥1,539,449,114.68, compared to ¥938,228,141.11, representing a growth of approximately 64% year-over-year[55] - Net profit for the current period was ¥196,039,620.02, compared to ¥136,756,037.86 in the previous period, reflecting a growth of approximately 43.5%[68] - The company reported a total profit of ¥227,090,542.76 for the current period, compared to ¥151,660,670.45 in the previous period, an increase of approximately 49.6%[68] - Operating profit surged to ¥948,091,410.16, up from ¥168,180,524.32, reflecting a growth of 463.5%[91] - Net profit for the current period was ¥928,890,273.64, compared to ¥167,736,758.72 in the previous period, marking an increase of 453.1%[94] Assets and Liabilities - Total assets increased by 22.04% to CNY 3,686,818,860.35 compared to the previous year[9] - Total liabilities reached ¥1,689,790,143.14, up from ¥1,449,786,736.54, marking a growth of around 17%[52] - Current liabilities rose to ¥1,216,207,990.61 from ¥1,015,331,756.22, reflecting an increase of approximately 20%[52] - Non-current liabilities due within one year increased by 133.29% to CNY 70,089,027.79, reflecting an increase in long-term borrowings[23] - Total non-current financial assets rose by 2016.25% to CNY 634,874,698.50 due to accounting changes related to equity investments[20] - Total liabilities amounted to CNY 1,449,786,736.54, with non-current liabilities at CNY 434,454,980.32[116] - Total equity reached CNY 1,571,185,144.06, with total assets at CNY 3,020,971,880.60[116] Cash Flow - Net cash flow from operating activities decreased by 77.58% to CNY 64,925,939.25 in Q3 2020, with a year-to-date decline of 41.67% to CNY 343,479,673.75[9] - The net cash flow from operating activities decreased by 41.67% to ¥343,479,673.75 from ¥588,880,124.14, mainly due to increased payments for raw materials such as paper[27] - Cash flow from operating activities amounted to ¥343,479,673.75, a decrease of 41.8% from ¥588,880,124.14 in the previous period[97] - The company reported cash inflow from investment activities of ¥293,379,612.82, down from ¥341,116,689.18, indicating a decline of 14.0%[100] - Total cash inflow from investment activities was $599,760,467.66, up from $356,863,635.14, marking a 68% increase year-over-year[103] Shareholder Information - The top shareholder, Yao Shuo Bin, holds 17.54% of the shares, with a total of 70,502,252 shares[13] - The company received government subsidies amounting to CNY 19,709,178.43 during the reporting period[12] Operational Changes - The company has made adjustments to its financial data due to mergers under common control[9] - Accounts receivable increased by 103.62% to CNY 309,893,337.47 due to the acquisition of Luming Technology[20] - Prepayments surged by 383.10% to CNY 32,541,238.54, attributed to the acquisition of Luming Technology[20] - Other receivables rose by 175.47% to CNY 32,428,422.38, linked to employee stock option exercises[20] - Inventory increased by 41.13% to CNY 249,469,521.96, resulting from higher paper stock levels[20] - Contract liabilities grew by 101.45% to CNY 44,172,627.64 due to the acquisition of Luming Technology[23] - The company reported a substantial increase in sales expenses by 40.68% to ¥323,874,059.40 from ¥230,217,442.86, driven by higher promotional costs from subsidiaries[27] Investment and Income - The company reported non-operating income of CNY 589,726,353.94, primarily from the disposal of non-current assets[12] - Investment income skyrocketed by 8108.69% to ¥500,200,377.21 from a loss of ¥6,245,718.27, attributed to a change in accounting treatment for the company's 14.21% stake in Shanghai Cell Therapy Group[27] - The company reported a significant investment income of ¥500,200,377.21 for the current period, a turnaround from a loss of ¥6,245,718.27 in the previous period[83] - The company received $372,750,027.66 in investment income, significantly higher than $176,595,635.14 from the previous period, representing an increase of 111.1%[103] Research and Development - Research and development expenses were ¥32,823,796.72, slightly up from ¥32,797,457.90, indicating a stable investment in innovation[65] - Research and development expenses for the current period were ¥84,668,938.83, slightly down from ¥85,863,832.05 in the previous period, indicating a decrease of about 1.4%[80] - Research and development expenses decreased to ¥175,445.69 from ¥253,944.88, a reduction of 30.8%[91]

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2020, representing a year-on-year increase of 15%[19] - The company has set a revenue guidance of 2.5 billion RMB for the full year 2020, indicating a growth target of 10%[19] - The company's operating revenue for the current period is ¥1,018,729,759.17, representing a 24.38% increase compared to the previous year's adjusted revenue of ¥819,017,282.35[26] - Net profit attributable to shareholders for the current period is ¥800,467,012.23, a significant increase of 436.70% from the previous year's adjusted net profit of ¥149,145,247.53[26] - The basic earnings per share for the current period is ¥2.0150, up 436.90% from the previous year's adjusted figure of ¥0.3753[26] - The diluted earnings per share for the current period is ¥1.9701, reflecting a 426.20% increase from the previous year's adjusted figure of ¥0.3744[26] - The total profit reached CNY 85,718,980, representing a significant year-on-year growth of 242.49%[65] - Net profit attributable to shareholders was CNY 80,046,700, marking a remarkable increase of 436.70% compared to the same period last year[65] User Growth and Market Expansion - User data showed an increase in active users by 20% compared to the same period last year, reaching 5 million active users[19] - The company is expanding its market presence in Southeast Asia, aiming for a 25% market share by the end of 2021[19] - The mobile gaming business includes popular titles such as "Fish Ball Game" and "Yaoji Fishing," with a strong presence in both domestic and overseas markets[38] - In the first half of 2020, China's online game user base reached nearly 660 million, with actual sales revenue of the national game market at 139.493 billion yuan, a year-on-year growth of 22.34%[44] - The mobile game market generated actual sales revenue of 104.673 billion yuan, accounting for 75.04% of the total market revenue[44] Product Development and Innovation - New product launches contributed to 30% of total revenue, with significant sales from the latest gaming products[19] - Research and development expenses increased by 18%, totaling 150 million RMB, focusing on innovative gaming technologies[19] - The company focuses on online casual social game development, with a strong team ensuring continuous product innovation and lifecycle extension[55] - The company has established a data-driven marketing and operation system in the mobile game sector, enhancing user engagement and monetization[56] - The company emphasizes the importance of continuous innovation in game and technology development to maintain competitive advantage in a rapidly growing market[124] Financial Management and Investments - The company plans to invest 500 million RMB in strategic acquisitions to enhance its product portfolio over the next two years[19] - The company reported a net cash flow from operating activities of CNY 278,553,734.50, a decrease of 6.94% year-on-year[71] - The company’s investment activities resulted in a net cash outflow of CNY 389,397,006.09, an increase of 21.44% compared to the previous year[71] - The company’s financing activities generated a net cash inflow of CNY 144,476,676.21, a substantial increase of 295.47% year-on-year[71] - The company has cumulatively invested ¥70,411.88 million of the raised funds, with 17.38% of the funds having their purposes changed[97] Risk Management - The management highlighted potential risks including market competition and regulatory changes, which could impact future performance[19] - The mobile internet gaming business faces regulatory risks, with potential increases in approval thresholds for game products, impacting operations if games do not receive necessary approvals[124] - The company is exposed to overseas market risks, including cultural differences and regulatory compliance, which could hinder revenue generation from international game releases[127] - The company is implementing measures to mitigate risks associated with reliance on a single supplier for raw materials in its playing card business, ensuring a stable supply chain[128] - The company is cautious in its investment strategies, focusing on risk prevention and management to ensure successful integration and synergy post-acquisition[129] Corporate Governance and Shareholder Matters - The company has no plans to distribute cash dividends or issue bonus shares for the current fiscal year[19] - The company held three shareholder meetings during the reporting period, with participation rates of 32.78%, 41.27%, and 46.04% respectively[134] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[135] - The total number of ordinary shareholders at the end of the reporting period is 42,440[196] - Major shareholder Yao Shuo Bin holds 17.63% of shares, totaling 70,502,250[196] Subsidiaries and Acquisitions - The company has expanded its business into internet marketing by acquiring Lu Ming Technology, enhancing its service offerings in various industries[42] - The company has established several new wholly-owned subsidiaries, including Xiayi Technology and Xiangcheng Technology, with no significant impact on overall performance reported[120] - The acquisition of the remaining 53.45% equity in Shanghai Chengqi Information Technology Co., Ltd. was completed for RMB 5,000 million, achieving a 100% completion rate[102] - Shanghai Chengxi Information Technology Co., Ltd. achieved operating revenue of CNY 520.92 million and a net profit of CNY 243.79 million, indicating strong performance in the gaming sector[117] Social Responsibility - The company donated CNY 2 million to support COVID-19 relief efforts in Hubei Province, enhancing its social responsibility profile[70]

Financial Performance - The company's operating revenue for Q1 2020 was CNY 534,420,305.80, representing a 37.00% increase compared to CNY 372,032,242.43 in the same period last year[9]. - Net profit attributable to shareholders was CNY 663,428,466.20, a significant increase of 1,080.36% from CNY 52,646,991.57 in the previous year[9]. - The net profit after deducting non-recurring gains and losses was CNY 144,493,827.59, up 181.75% from CNY 51,284,310.80 year-on-year[9]. - Basic earnings per share reached CNY 1.6626, a remarkable increase of 1,074.98% compared to CNY 0.1326 in the same quarter last year[9]. - The weighted average return on equity was 36.34%, up from 2.88% in the previous year, indicating a significant improvement in profitability[9]. - The company's operating revenue for the reporting period reached ¥534,420,305.80, representing a 37.00% increase compared to ¥390,098,310.31 in the same period last year[28]. - The net profit attributable to the parent company was ¥1,601,656,607.31, an increase of 70.71% from ¥938,228,141.11 year-on-year[28]. - The company reported a significant increase in other income, which rose by 613.98% to ¥11,389,979.00, primarily due to increased government subsidies received[28]. - The company’s investment income surged by 15194.52% to ¥502,811,745.93, resulting from the aforementioned accounting treatment change[28]. - The company's total comprehensive income attributable to the parent company was ¥663,428,404.30, compared to ¥56,205,838.83 in the previous period[70]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,539,865,028.78, reflecting a 17.18% increase from CNY 3,020,971,880.60 at the end of the previous year[9]. - Net assets attributable to shareholders increased by 34.44% to CNY 2,007,238,523.90 from CNY 1,493,007,959.33 year-on-year[9]. - The company's total current assets reached CNY 1,043,212,347.97, up from CNY 873,447,794.73, indicating a growth of about 19.4%[42]. - The total liabilities decreased slightly to CNY 1,443,744,332.40 from CNY 1,449,786,736.54, showing a reduction of about 0.4%[48]. - The company's equity attributable to shareholders rose to CNY 2,007,238,523.90 from CNY 1,493,007,959.33, marking an increase of approximately 34.4%[51]. - The total assets increased to CNY 3,471,391,350.07 from CNY 3,097,032,332.25, marking a growth of about 12%[59]. - The total liabilities amounted to CNY 1,396,017,286.14, slightly up from CNY 1,374,448,223.42, indicating a growth of about 2%[59]. - The owner's equity increased to CNY 2,075,374,063.93 from CNY 1,722,584,108.83, representing a growth of approximately 20%[59]. Cash Flow - The net cash flow from operating activities was CNY 136,801,283.27, a decrease of 14.57% compared to CNY 145,564,036.34 in the same period last year[9]. - The cash flow from investing activities showed a net outflow of ¥356,594,535.04, a decrease of 4445.67% compared to the previous year, mainly due to payments for acquisitions[28]. - The company secured a merger loan of ¥330,000,000 from Shanghai Pudong Development Bank, contributing to a 620.88% increase in cash flow from financing activities, totaling ¥353,592,806.63[28]. - Cash flow from operating activities amounted to ¥611,099,275.25, an increase from ¥456,570,829.52 in the previous period[78]. - The net cash flow from financing activities was 353,592,806.63, compared to a negative cash flow of -67,883,595.89 in the previous period, indicating a significant improvement[84]. - The cash outflow for operating activities was 186,999,669.10, significantly higher than 103,857,499.56 in the previous period, reflecting increased operational costs[85]. - The cash flow from investment activities included 11,500,000.00 received from other investment-related activities, down from 44,101,583.81 in the previous period, indicating reduced returns from investments[88]. Investments and Expenses - The company's long-term equity investment decreased by 94.71% to ¥15,529,288.95 due to a change in accounting treatment, transferring 14.21% equity in Shanghai Cell Therapy Group from long-term equity investment to other non-current financial assets[25]. - The total amount of other non-current financial assets increased by 2096.25% to ¥658,874,698.50, attributed to the same accounting treatment change[25]. - Research and development expenses for the quarter were CNY 28,579,664.76, compared to CNY 25,116,240.38 in the previous period, showing an increase of about 10%[63]. - The company's prepaid expenses increased by 401.49% to ¥33,780,068.22, primarily due to increased promotional expenses by its subsidiary[25]. - The company incurred financial expenses of ¥6,010,663.15, which is an increase from ¥3,224,589.45 in the previous period[71]. - Research and development expenses decreased to ¥94,412.92 from ¥136,803.19 in the previous period, reflecting a focus on cost management[71]. Shareholder Information - The top ten shareholders collectively hold 53.85% of the company's total shares, indicating a concentrated ownership structure[14].