Group 1: Company Overview and Acquisition Strategy - The company is focusing on its core business of playing cards, which provides stable cash flow, forming the basis for further expansion or transformation [1] - The acquisition of Wanshengda, a major domestic playing card manufacturer, is aimed at enhancing production capacity and distribution channels, thereby solidifying the company's leading position in the industry [2] - Post-acquisition, the company expects to leverage Wanshengda's brand and distribution network, which has minimal overlap with its own, to achieve significant market expansion [2] Group 2: Market Position and Competitive Landscape - The playing card industry is evolving from perfect competition to oligopoly, with high-end manufacturers gaining market share through automation and quality advantages [2] - The "Yaoji" brand has established a strong reputation for quality and design, becoming a core competitive asset for the company [2] - The company plans to continue leveraging the "Yaoji" brand influence to explore quality projects and innovative cooperation models in the "big entertainment" and "big health" sectors for sustainable long-term development [2] Group 3: Investment in Health Sector - The company is advancing its layout in the "big health" sector, focusing on immune cell therapy, with significant progress in its investment in Shanghai Cell Therapy Engineering Technology Research Center [3] - The new CAR-T and "Bai Ze Jian" cell therapy technologies have shown promising results in treating various solid tumors, enhancing the company's capabilities in the biomedicine industry [3] - Despite potential risks in legal, market, policy, and technological aspects, the company remains optimistic about the future of immune cell therapy [3]

Group 1: Financial Performance - The company's total revenue from Q1 to Q3 2020 reached 1.8 billion, a year-on-year increase of 41.56%, primarily due to contributions from the gaming sector and profits from the acquisition of Luming [1] - The net profit attributable to shareholders was 985 million, a year-on-year increase of 256%, influenced by operational profit growth and changes in accounting methods for investments [1] - The non-recurring net profit was approximately 400 million, reflecting a year-on-year growth of 53.19%, indicating sustained high-speed development [1] Group 2: Q3 Performance Insights - In Q3 2020, the company achieved revenue of 796 million, a year-on-year increase of 71.93%, showcasing strong revenue growth [2] - The non-recurring net profit for Q3 was 122 million, with a slight increase compared to the previous year, attributed to rising sales expenses which reached 128 million, a 67.94% increase year-on-year [2] - Sales expenses are expected to have a delayed effect on profit, typically reflecting in 1-2 quarters [2] Group 3: Future Growth Expectations - The company anticipates good growth potential for Q4 2020 and Q1 2021, driven by a focus on high-quality products and the "big entertainment" strategy [2] - Overseas business achieved over 50% growth in the first three quarters of 2020, with expectations for continued positive growth trends [2] - The gaming industry is expected to see an increase in average user spending (ARPPU), with market growth surpassing the industry average due to increasing product quality [2] Group 4: Strategic Insights - Rising user acquisition costs are accelerating industry consolidation, with short-term impacts due to increased competition and long-term effects linked to retention and payment rates [3] - The company plans to release several new products around the Spring Festival, with a projected team size increase of over 50% by year-end to enhance product development speed and efficiency [3] - The two Bingo games are expected to maintain a growth rate of 20%-30% annually, with historical highs in revenue and daily active users (DAU) achieved in Q3 [3]

Financial Performance - The company's revenue for Q3 2022 was ¥915,112,810.07, a decrease of 0.71% year-on-year, while the revenue for the year-to-date period was ¥2,813,572,685.12, down 3.54% compared to the same period last year[6]. - Net profit attributable to shareholders for Q3 2022 was ¥101,647,578.05, an increase of 8.81% year-on-year, but a significant decrease of 36.52% for the year-to-date period at ¥292,259,680.34[6]. - The basic earnings per share for Q3 2022 was ¥0.2511, up 7.77% year-on-year, while the diluted earnings per share was ¥0.2520, an increase of 9.19%[6]. - Total revenue for the third quarter was CNY 2,813,572,685.12, a decrease of 3.55% compared to CNY 2,916,727,671.61 in the previous year[29]. - Net profit attributable to the parent company reached CNY 2,021,701,882.63, up from CNY 1,850,948,649.29, indicating a growth of 9.23%[28]. - The net profit for the current period is ¥251,606,266.07, a decrease of 45.3% compared to ¥460,472,567.15 in the previous period[31]. - The total profit for the current period is ¥307,189,166.02, down from ¥514,724,152.72, reflecting a decline of 40.3%[31]. - Operating income for the current period is ¥309,307,009.19, compared to ¥515,330,477.53 in the previous period, indicating a decrease of 40.0%[31]. - The total comprehensive income for the current period is ¥251,671,176.50, compared to ¥460,473,736.70 in the previous period, reflecting a decrease of 45.3%[31]. Assets and Liabilities - The company's total assets at the end of Q3 2022 were ¥4,231,708,529.30, reflecting a growth of 6.34% compared to the end of the previous year[6]. - As of September 30, 2022, the company's total current assets amounted to approximately CNY 1.50 billion, an increase from CNY 1.35 billion at the beginning of the year, reflecting a growth of about 11.1%[22]. - The company's total non-current assets were reported at CNY 1.83 billion, slightly up from CNY 1.80 billion, reflecting a growth of about 1.7%[22]. - The total liabilities of the company as of September 30, 2022, were not specified but are critical for assessing financial health[22]. - Non-current liabilities decreased to CNY 153,626,248.20 from CNY 216,855,279.61, a reduction of 29.19%[28]. - The total liabilities increased to CNY 1,546,935,409.17 from CNY 1,525,359,902.45, reflecting a rise of 1.03%[28]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 37,298, indicating a stable shareholder base[16]. - The company's equity attributable to shareholders rose to CNY 2,648,405,660.63 from CNY 2,447,923,448.06, an increase of 8.19%[28]. Cash Flow and Financing - Cash flow from operating activities is ¥325,432,696.82, slightly down from ¥331,847,673.39 in the previous period[35]. - Cash flow from investing activities shows a net outflow of ¥132,836,817.31, compared to a net outflow of ¥97,779,082.16 in the previous period[38]. - Cash flow from financing activities has a net outflow of ¥163,531,870.66, an improvement from a net outflow of ¥385,593,885.64 in the previous period[38]. - The company received cash from financing activities totaling ¥724,332,102.64, up from ¥558,115,505.73 in the previous period[38]. Research and Development - The company's R&D expenses for the year-to-date period were ¥198,933,470.52, an increase of 41.46% compared to the same period last year, indicating a focus on product innovation[15]. Market Strategy and Outlook - The company is focusing on expanding its market presence and enhancing product development strategies, although specific new products were not detailed in the report[21]. - Future outlook includes potential market expansion and strategic partnerships to drive growth, with an emphasis on innovation in technology[21]. - The company reported a significant increase in shareholder equity, indicating a strengthening financial position, although exact figures were not provided[21].

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2022, representing a year-on-year increase of 15%[24]. - The company's operating revenue for the reporting period was ¥1,898,459,875.05, a decrease of 4.84% compared to the same period last year[31]. - Net profit attributable to shareholders was ¥190,612,102.29, down 48.06% year-over-year[31]. - The net profit after deducting non-recurring gains and losses was ¥181,646,963.48, a decline of 44.38% compared to the previous year[31]. - The basic earnings per share decreased by 48.55% to ¥0.4719, while diluted earnings per share fell by 48.02% to ¥0.4709[31]. - The company's total revenue for the reporting period was ¥1,898,459,875.05, representing a decrease of 4.84% compared to ¥1,995,074,099.94 in the same period last year[60]. - The revenue from the card game segment was ¥567,625,959.95, accounting for 29.90% of total revenue, with a year-on-year increase of 8.53%[60]. - The mobile game segment generated revenue of ¥583,216,626.91, which is a decrease of 8.86% from ¥639,909,177.20 in the previous year, representing 30.72% of total revenue[60]. - The internet marketing segment's revenue was ¥712,502,698.09, down 11.33% from ¥803,534,272.55, making up 37.53% of total revenue[60]. - The company reported a total revenue of 1,311 million yuan for the first half of 2022, with a year-on-year increase of 7%[135]. 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[24]. - The company plans to launch three new products in the second half of 2022, aiming for a 10% increase in market share[24]. - Market expansion efforts include entering two new provinces, targeting a 30% increase in regional sales[24]. - Future outlook includes a projected revenue growth of 25% for the full year 2022, driven by new product launches and market expansion strategies[24]. - The mobile gaming sector remains a key focus, with over 35 million registered users for overseas games, indicating strong market presence[42]. - The domestic gaming market saw a slight decline in actual sales revenue of 1.80% year-over-year, highlighting competitive pressures[42]. Research and Development - The company has allocated 100 million RMB for research and development in new technologies, focusing on enhancing user experience[24]. - The company's R&D investment increased by 31.02% to ¥115,245,846.39, compared to ¥87,962,425.17 in the previous year, reflecting a commitment to product innovation[60]. - The company emphasizes the importance of R&D in new games and technologies to maintain competitive advantage in the rapidly evolving mobile gaming market[91]. - The company has strengthened its talent team by combining internal training and external recruitment to enhance R&D and management capabilities[57]. Financial Health and Assets - Total assets increased by 4.27% to ¥4,149,212,410.22 compared to the end of the previous year[31]. - The company reported a net asset attributable to shareholders of ¥2,541,159,198.74, reflecting a growth of 3.81% year-over-year[31]. - Cash and cash equivalents increased to 650,942,862.03, representing 15.69% of total assets, up from 582,156,738.52 (14.63%) due to a net increase in cash flow[67]. - Accounts receivable rose to 389,175,855.55, making up 9.38% of total assets, an increase attributed to higher revenue in the internet marketing segment compared to last year[67]. - Inventory decreased to 280,766,792, which is 6.77% of total assets, down from 317,524,029 (7.98%) due to reduced stock levels[67]. Risk Management - The management highlighted potential risks including market competition and regulatory changes, with strategies in place to mitigate these risks[5]. - The company faces regulatory risks due to increased scrutiny from government agencies on online gaming, which may raise the barriers for game approvals and operations[91]. - The company is actively managing risks related to market competition, ensuring timely updates and maintenance of existing games to prevent revenue decline[91]. - The company is focused on protecting its intellectual property rights to mitigate risks associated with potential infringement and competition[91]. - The company is monitoring overseas market risks as part of its expansion strategy[91]. - The company is committed to compliance with privacy regulations to safeguard user data and maintain trust in its gaming operations[91]. Environmental and Social Responsibility - The company has installed environmental protection and energy-saving equipment to improve waste gas treatment and reduce energy consumption in response to national energy-saving policies[118]. - The company has not faced any administrative penalties for environmental issues during the reporting period[118]. - The company is committed to continuous improvement in product quality and environmental compliance, ensuring long-term competitiveness in the playing card market[51]. - The company donated a total of 2.04 million CNY in cash for poverty alleviation and social rescue efforts during the first half of 2022[120]. Shareholder Information - The total number of shares before the changes was 404,489,687, with 1,069,700 new shares issued, resulting in a total of 405,509,387 shares after the changes[166]. - The total number of ordinary shareholders at the end of the reporting period was 35,773[178]. - Shareholder Yao Shuo Bin holds 17.39% of the shares, totaling 70,502,252[178]. - Shareholder Yao Xiao Li holds 13.13% of the shares, totaling 53,224,352[178]. - The company has implemented a stock repurchase program, with specific details on the repurchased shares not disclosed[174].

Financial Performance - The company's revenue for Q1 2022 was CNY 1,009,966,281.48, representing a 2.94% increase compared to CNY 981,142,310.13 in the same period last year[3] - Net profit attributable to shareholders decreased by 53.77% to CNY 91,804,797.30 from CNY 198,589,062.29 year-on-year[3] - The net profit after deducting non-recurring gains and losses fell by 54.51% to CNY 83,133,683.84 compared to CNY 182,763,225.96 in the previous year[3] - Basic earnings per share dropped by 54.14% to CNY 0.2274 from CNY 0.4959 in the same period last year[3] - Diluted earnings per share decreased by 50.77% to CNY 0.2247 compared to CNY 0.4564 in the previous year[3] - Total operating revenue for the current period reached ¥1,009,966,281.48, an increase from ¥981,142,310.13 in the previous period, representing a growth of approximately 2.8%[25] - Net profit for the current period was ¥73,033,939.53, a decrease from ¥200,784,360.02, reflecting a decline of about 63.6%[28] - Basic earnings per share decreased to ¥0.2274 from ¥0.4959, a decline of approximately 54.2%[31] - The total profit for the current period was ¥93,014,196.05, down from ¥226,404,303.63, indicating a decline of about 58.9%[28] Cash Flow and Liquidity - The net cash flow from operating activities decreased by 38.68% to CNY 113,265,009.58 from CNY 184,698,817.90 year-on-year[3] - Cash inflow from operating activities totaled ¥1,317,446,844.51, compared to ¥1,081,324,421.18 in the previous period, showing an increase of about 21.8%[32] - The net cash flow from operating activities was $113,265,009.58, a decrease of 38.6% compared to $184,698,817.90 in the previous period[35] - Total cash outflow from operating activities amounted to $1,204,181,834.93, up 34.2% from $896,625,603.28[35] - Cash inflow from financing activities reached $224,272,138.31, an increase of 151.1% compared to $89,275,572.69[35] - The cash and cash equivalents at the end of the period totaled $567,766,612.39, down 17.9% from $691,924,252.76[38] Assets and Liabilities - Total assets increased by 4.43% to CNY 4,155,501,798.51 from CNY 3,979,230,458.64 at the end of the previous year[3] - The total liabilities of the company as of March 31, 2022, were RMB 1,564,750,085.94, compared to RMB 1,525,359,902.45 at the beginning of the year, marking an increase of about 2.6%[21] - The company's cash and cash equivalents increased to RMB 687,496,820.20 from RMB 582,156,738.52, reflecting a growth of about 18.1%[18] - Accounts receivable rose to RMB 439,592,632.08, up from RMB 322,728,938.69, indicating an increase of approximately 36.3%[18] - The company reported a decrease in inventory from RMB 317,524,029.71 to RMB 248,755,375.70, a reduction of about 21.6%[18] - The company's equity attributable to shareholders increased to RMB 2,550,023,789.50 from RMB 2,447,923,448.06, showing a growth of approximately 4.2%[24] - The company’s retained earnings rose to RMB 1,942,753,446.59 from RMB 1,850,948,649.29, an increase of approximately 4.9%[24] Expenses and Investments - Total operating costs increased to ¥927,464,915.13 from ¥771,185,326.04, marking a rise of about 20.3%[25] - Research and development expenses rose to ¥57,172,129.78, up from ¥41,506,690.47, indicating a growth of approximately 37.7%[25] - The company reported a decrease in tax expenses to ¥19,980,256.52 from ¥25,619,943.61, a reduction of approximately 22.5%[28] - Cash paid to employees and for employee benefits was $145,346,848.03, an increase of 13.1% from $128,503,161.94[35] - Cash paid for taxes was $30,328,563.52, a decrease of 27.3% compared to $41,740,078.79[35] - Cash inflow from investment activities was $587,397.24, a significant decrease from $125,534,118.37[35] - Cash outflow for the acquisition of fixed assets was $18,428,635.91, down 43.8% from $32,822,866.22[35] Non-Recurring Items - The company reported non-recurring gains of CNY 8,671,113.46, primarily from government subsidies and asset disposals[5] - Increased promotional expenses and R&D investments in mobile gaming were cited as reasons for the decline in net profit[6] - Investment income showed a loss of ¥1,784,280.11, a significant drop from a gain of ¥19,474,373.07 in the previous period[28] Future Outlook - The company is in the process of issuing convertible bonds, with the approval from the China Securities Regulatory Commission pending, which may impact future funding strategies[15]

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]

Revenue and Profit - The company's revenue for Q3 2021 was ¥921,653,571.67, representing a 15.75% increase year-over-year[3] - Net profit attributable to shareholders for Q3 2021 was ¥93,419,306.95, a decrease of 49.37% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥90,468,973.56, down 25.74% year-over-year[3] - Basic earnings per share for Q3 2021 was ¥0.2330, a decline of 49.74% from the previous year[3] - Diluted earnings per share for Q3 2021 was ¥0.2308, a decrease of 51.48% compared to the same period last year[3] - The net profit for Q3 2021 was approximately ¥460.47 million, a decrease of 55.05% compared to ¥1.02 billion in the same period last year[26] - Operating profit for Q3 2021 was approximately ¥515.33 million, down 52.4% from ¥1.09 billion in Q3 2020[26] - Total comprehensive income for Q3 2021 was approximately ¥460.47 million, down from ¥1.02 billion in Q3 2020[30] - Basic earnings per share for Q3 2021 were ¥1.1502, compared to ¥2.4786 in the same period last year[30] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,902,382,752.53, a slight increase of 0.41% from the end of the previous year[3] - Total assets reached CNY 3,902,382,752.53, compared to CNY 3,886,358,589.27 at the end of 2020, marking a growth of about 0.4%[19] - Total liabilities were CNY 1,544,023,802.29, down from CNY 1,772,293,398.09, indicating a decrease of approximately 12.9%[22] - The total liabilities increased from $1.77 billion to $1.81 billion, with a notable increase in non-current liabilities by $42.50 million[44] Equity - The company's total equity attributable to shareholders was ¥2,346,474,062.73, reflecting a 13.91% increase year-over-year[5] - The equity attributable to the parent company was CNY 2,346,474,062.73, an increase from CNY 2,060,002,721.01, reflecting a growth of about 13.9%[22] - The total equity attributable to shareholders was $2.06 billion, slightly increasing from $2.06 billion in the previous period[47] Cash Flow and Investments - Cash and cash equivalents as of September 30, 2021, were CNY 500,578,582.94, down from CNY 659,091,530.81 at the end of 2020, reflecting a decrease of approximately 24.1%[16] - The company recorded a net cash inflow from investment activities of approximately ¥149.62 million, down from ¥293.38 million in the previous year[31] - The net cash flow from investing activities was -$97.78 million, compared to $14.62 million in the previous period[37] - The total cash inflow from financing activities was $558.12 million, down from $883.95 million year-over-year[37] - The net cash flow from financing activities was -$385.59 million, compared to -$306.23 million in the previous period[37] - The cash and cash equivalents at the end of the period totaled $391.27 million, down from $453.66 million year-over-year[37] Operating Costs and Expenses - The total operating revenue for the third quarter of 2021 was CNY 2,916,727,671.61, an increase from CNY 1,814,988,539.66 in the same period last year, representing a growth of approximately 60.8%[24] - The total operating costs for the third quarter of 2021 amounted to CNY 2,453,119,732.28, up from CNY 1,320,699,290.06, indicating a year-over-year increase of about 85.6%[24] - Research and development expenses increased to ¥140.62 million, up 65.9% from ¥84.67 million year-over-year[26] - Sales expenses rose to ¥370.28 million, an increase of 14.3% compared to ¥323.87 million in the previous year[26] - Cash flow from operating activities was approximately ¥331.85 million, a decrease of 3.7% from ¥343.48 million in the same period last year[31] Other Financial Metrics - The weighted average return on equity was 4.34%, down 3.78% year-over-year[3] - The company reported non-recurring gains of ¥2,950,333.39 for the current period[5] - The company attributed the decrease in net profit to changes in accounting treatment and asset disposals in the previous year[6] - The company reported a significant increase in accounts payable, which rose to CNY 122,265,701.41 from CNY 73,617,704.54, representing an increase of approximately 66.0%[19] - The company’s long-term investments increased to CNY 35,776,696.79 from CNY 29,338,092.70, showing a growth of about 21.9% year-over-year[16] Inventory and Receivables - Accounts receivable increased to CNY 407,157,468.19 from CNY 250,727,024.95, showing a growth of about 62.3% year-over-year[16] - Inventory as of September 30, 2021, was CNY 262,861,972.25, slightly down from CNY 271,168,462.92, a decrease of approximately 3.1%[16] - The company’s inventory was reported at $271.17 million, remaining stable compared to the previous period[41] Audit and Reporting - The third quarter report was not audited[49]

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].

Financial Performance - The company's operating revenue for Q1 2021 was ¥981,142,310.13, representing an increase of 83.59% compared to ¥534,420,305.80 in the same period last year[9]. - The net profit attributable to shareholders of the listed company decreased by 70.07% to ¥198,589,062.29 from ¥663,428,466.20 year-on-year[9]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 26.49% to ¥182,763,225.96 compared to ¥144,493,827.59 in the previous year[9]. - The basic earnings per share decreased by 70.17% to ¥0.4959 from ¥1.6626 in the same period last year[9]. - The diluted earnings per share decreased by 72.08% to ¥0.4564 from ¥1.6344 year-on-year[9]. - The weighted average return on equity was 8.99%, down 27.35% from 36.34% in the previous year[9]. - The company reported a total operating cost of ¥771,185,326.04, up from ¥347,101,634.07, which is an increase of about 122%[70]. - The profit margin decreased significantly, with the net profit margin for the current period at approximately 76.7%, down from 97.4% in the previous period[70]. - The total comprehensive income for the current period was ¥200,784,727.70, down from ¥674,467,099.79, reflecting a decrease of about 70%[73]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 35.01% to ¥184,698,817.90 from ¥136,801,283.27 in the same period last year[9]. - As of March 31, 2021, the company's cash and cash equivalents amounted to RMB 803.86 million, an increase from RMB 659.09 million at the end of 2020, representing a growth of approximately 21.9%[48]. - Cash inflow from operating activities totaled CNY 1,081,324,421.18, up from CNY 611,099,275.25 in the prior period, representing an increase of approximately 77.0%[81]. - Cash inflow from sales of goods and services reached CNY 1,001,463,810.31, compared to CNY 546,239,817.75 in the prior period[81]. - The ending balance of cash and cash equivalents was CNY 691,924,252.76, an increase from CNY 538,543,110.79 in the previous period[87]. Assets and Liabilities - The total assets at the end of the reporting period were ¥4,053,549,693.19, an increase of 4.30% from ¥3,886,358,589.27 at the end of the previous year[9]. - The total liabilities decreased to CNY 1,368,152,359.18 from CNY 1,399,479,577.52, reflecting a reduction of approximately 2.2%[64]. - The total equity attributable to shareholders increased to CNY 2,493,323,754.93 from CNY 2,513,201,397.26, showing a slight decrease of about 0.8%[64]. - The company's total equity as of January 1, 2021, was CNY 2,114,708,039.49, up from CNY 2,114,065,191.18, showing an increase of CNY 642,848.31[96]. - Total liabilities rose to CNY 1,814,090,970.27, compared to CNY 1,772,293,398.09 at the end of 2020, indicating an increase of CNY 41,797,572.18[96]. Investments and Expenditures - The company reported a 41.12% increase in capital reserves to CNY 30,625,901.73 due to the recognition of option expenses[24]. - The company experienced a 96.13% decline in investment income to CNY 19,474,373.07 due to changes in accounting treatment for its stake in Shanghai Cell Therapy Group[27]. - The company has invested RMB 1.85 million in entrusted financial management products, with an outstanding balance of RMB 400,000[39]. - The company plans to transfer a 2% equity stake in Shanghai Cell Therapy Group Co., Ltd. for a total price of RMB 110 million, reducing its ownership from 14.2119% to 12.2119%[32]. Shareholder Actions - The company plans to repurchase shares with a total amount between CNY 30 million and CNY 60 million, with a maximum price of CNY 35 per share[31]. - The company has repurchased a total of 1,146,897 shares, accounting for about 0.29% of the total share capital, with a total transaction amount of RMB 30.00 million[32]. - The company plans to use the repurchased shares for employee stock ownership plans or equity incentive plans[32]. Research and Development - Research and development expenses grew by 45.23% to CNY 41,506,690.47 due to an increase in R&D personnel[27]. - Research and development expenses increased to ¥41,506,690.47 from ¥28,579,664.76, reflecting a growth of approximately 45%[70]. Government Support - The company received government subsidies amounting to ¥11,437,121.15 during the reporting period[9].

Financial Performance - The company reported a total revenue of 399,885,036 RMB for the year 2019, with a cash dividend of 4 RMB per 10 shares distributed to shareholders[6]. - The company's operating revenue for 2019 was CNY 1,736,595,927.84, representing a 77.27% increase compared to CNY 979,612,061.50 in 2018[28]. - The net profit attributable to shareholders for 2019 was CNY 344,842,563.11, a significant increase of 151.48% from CNY 137,126,391.93 in 2018[28]. - The net profit after deducting non-recurring gains and losses was CNY 317,933,506.38, reflecting a 224.80% increase compared to CNY 97,884,657.96 in 2018[28]. - The net cash flow from operating activities for 2019 was CNY 707,984,769.21, up 171.19% from CNY 261,065,977.69 in 2018[28]. - The basic earnings per share for 2019 was CNY 0.8690, an increase of 151.67% from CNY 0.3453 in 2018[28]. - The total profit for the year was 50,037.10 million CNY, an increase of 105.10% year-over-year[58]. - Net profit attributable to shareholders reached 34,484.26 million CNY, marking a 151.48% increase from the previous year[58]. Shareholder Returns - The board of directors approved a profit distribution plan based on the aforementioned revenue figure, indicating a commitment to returning value to shareholders[6]. - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling RMB 159,954,014.40 for the year ending December 31, 2019[149]. - The cash dividend distribution for 2019 represents 100% of the total profit distribution amount[149]. - In 2019, the company reported a net profit attributable to ordinary shareholders of RMB 344,842,563.11, with a cash dividend payout ratio of 46.38%[148]. Business Strategy and Development - The company is focused on expanding its market reach and exploring new business opportunities through strategic initiatives[6]. - The company is actively monitoring potential risks in its future development strategies, as outlined in the report[6]. - The company has established various subsidiaries and partnerships, enhancing its market presence and operational capabilities[12]. - The company is focusing on expanding its mobile gaming business and has launched several successful titles, including "Yaoji Fishing" and "Xiaomei Dou Di Zhu"[58]. - The company plans to enhance its mobile game product line by increasing R&D efforts and forming multiple project teams[44]. - The company is diversifying its operations by investing in internet advertising and big data sectors, establishing a preliminary industry chain[58]. Risk Management - The company has faced risks in its poker and mobile gaming businesses, including raw material price fluctuations and regulatory risks[138]. - The company is committed to increasing R&D efforts and focusing on high-quality game development to enhance its market position[138]. - The company has a cautious approach to external investments, aiming to mitigate strategic and operational risks associated with acquisitions[138]. Corporate Governance and Compliance - 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 adhered to the non-competition commitments made by its management and core personnel during the reporting period[158]. - The company has established a sound corporate governance structure and independent operational management system prior to the transaction, which will remain unchanged[185]. - The company guarantees that all documents related to the transaction are accurate and complete, with no significant omissions[171]. Research and Development - Research and development expenses increased by 92.27% to CNY 110,099,845.89, representing 6.34% of operating revenue[81]. - The number of R&D personnel rose by 26.78% to 303, while the proportion of R&D personnel to total employees decreased by 3.45%[82]. - The company aims to enhance its research and development capabilities, focusing on H5 games and WeChat mini-program games, while also launching new studios for game development[135]. Market Position and Competition - The company maintained its leading position in the poker production and sales industry, leveraging advanced production technology and efficient management[45]. - The company’s poker brand "Yaoji" is recognized as one of the six well-known brands in the Chinese poker industry[45]. - The company is focusing on developing new gaming products, including "Little Beauty Dou Di Zhu," to meet market demands and enhance competitiveness[81]. Financial Management - The company has a dedicated investor relations team to facilitate communication with shareholders and stakeholders[20]. - The company’s website provides additional resources and information for investors, showcasing transparency in its operations[19]. - The company has reported a significant increase in cash flow discrepancies compared to net profit, primarily due to increased procurement costs for raw materials in the poker business[87]. Acquisitions and Investments - The company successfully acquired 46.55% of Chengxi Technology for 66,799.20 million CNY, making it a wholly-owned subsidiary[58]. - The company invested 15,860 million CNY to acquire a 26% stake in Dayu Gaming, which became a controlled subsidiary[58]. - The company acquired 51% of Shanghai KuZhen Network Technology Co., and 26% of Dayu Competitive (Beijing) Network Technology Co., expanding its consolidation scope[70]. Performance Commitments - The company has completed the performance commitments for the year 2019, achieving a net profit of at least RMB 120 million as promised[150]. - The performance commitments for the years 2018, 2019, 2020, and 2021 were set at RMB 100 million, RMB 120 million, RMB 140 million, and RMB 160 million respectively[152].