Financial Performance - The company's operating revenue for the first half of 2022 was ¥3,923,301,537.63, a decrease of 6.73% compared to ¥4,206,582,889.92 in the same period last year[11]. - Net profit attributable to shareholders was ¥1,137,476,657.67, representing a significant increase of 341.51% from ¥257,633,579.12 in the previous year[11]. - The net profit after deducting non-recurring gains and losses was ¥670,548,739.89, up 1,653.68% from ¥38,236,623.98 year-on-year[11]. - The net cash flow from operating activities increased by 28.37% to ¥418,055,671.71, compared to ¥325,664,415.64 in the same period last year[11]. - Basic and diluted earnings per share were both ¥0.60, a 361.54% increase from ¥0.13 in the previous year[11]. - The weighted average return on equity was 10.98%, up from 2.40% in the same period last year, an increase of 8.58%[11]. - Total assets at the end of the reporting period were ¥15,584,732,819.60, a decrease of 8.54% from ¥17,039,505,936.95 at the end of the previous year[11]. - Net assets attributable to shareholders decreased by 12.64% to ¥8,989,266,689.72 from ¥10,290,047,984.60 at the end of the previous year[11]. Revenue Breakdown - Game business revenue for the period was ¥369,267.27 million, an increase of 22.20% year-on-year, while film and television business revenue was ¥11,989.06 million, a decrease of 83.56%[11]. - The company adjusted its overseas game business layout, resulting in a revenue increase of 1.58% after excluding the impact of changes in the consolidation scope[11]. - Game business revenue reached CNY 373,614.56 million, up 9.59% year-on-year, with net profit attributable to shareholders rising by 429.73% to CNY 118,258.76 million[26]. - The company sold its U.S. development studio and related local publishing teams, resulting in a one-time gain of approximately CNY 40,000 million, and adjusted game revenue excluding this impact increased by 22.20%[26]. Investment and Cash Flow - The net cash flow from investing activities decreased by 36.56% to approximately ¥662.76 million, mainly due to lower cash inflows from previous investments compared to the prior period[32]. - The net cash flow from financing activities showed a significant decline of 118.03%, primarily due to increased cash payments for dividends compared to the previous year[32]. - The company reported a 94.73% increase in investment income, amounting to approximately ¥384 million, mainly from the sale of subsidiaries[33]. - The company’s cash and cash equivalents decreased by 5.37% to ¥2,305,993,871.46, representing 14.80% of total assets, due to the net cash flow from operating, investing, and financing activities[38]. Game Development and Strategy - The gaming business has been a core focus since its establishment in 1997, with a strong emphasis on developing high-quality games across various platforms, including PC, mobile, and VR[17]. - The company has launched multiple successful global titles, including "DOTA2" and "CS:GO," solidifying its position in the esports market[17]. - The mobile game "Honkai: Star Rail" achieved the fourth position on the domestic iOS game sales chart, showcasing the company's innovation in game development[19]. - The company emphasizes a "content-first" marketing strategy, successfully integrating game releases with popular media to enhance brand recognition and market engagement[22]. - The company is focusing on overseas game business with a dual strategy of "localization overseas + domestic products going global," with several games launched in multiple international markets[28]. Talent and Development - The company maintains a strong focus on talent development, implementing a comprehensive mechanism for attracting, nurturing, and retaining talent to drive sustainable growth[23]. - The company has a talent retention strategy focusing on "internal training + external recruitment" to mitigate the risk of talent loss and ensure a strong talent pipeline[54]. - The company has developed a comprehensive mechanism for talent attraction, care, motivation, and assessment to maintain its competitive edge in the cultural and creative industry[54]. Environmental and Social Responsibility - The company initiated the "Planting Perfect" environmental project in 2021, involving employee participation in tree planting activities to enhance carbon sequestration[63]. - The company has established a special team to participate in initiatives aimed at protecting minors in the gaming industry[52]. - The company has implemented strict measures for user account real-name registration and login to comply with regulations aimed at protecting minors[52]. Corporate Governance and Structure - The company experienced a change in executive leadership with the appointment of a new co-CEO on March 28, 2022, following the resignation of the previous co-CEO[56]. - The company held its annual general meeting on May 16, 2022, with an investor participation rate of 39.84%[55]. - The company plans not to distribute cash dividends or issue bonus shares for the semi-annual report period[57]. Compliance and Risk Management - The company is actively responding to industry policy changes to ensure compliance and sustainable development[52]. - The company has not engaged in any derivative investments or significant asset sales during the reporting period[46][47]. - The company has no significant litigation or arbitration matters during the reporting period[68]. Financial Reporting and Accounting Policies - The financial statements prepared by the company comply with the requirements of the accounting standards and reflect the financial position, operating results, and cash flows accurately[127]. - The company recognizes goodwill in business combinations when the purchase price exceeds the fair value of identifiable net assets acquired[129]. - The company applies a systematic approach to amortize the adjusted carrying amount of impaired intangible assets over their remaining useful life[171]. - The company recognizes expected liabilities related to lawsuits and other contingencies when certain criteria are met, including the obligation being a current one and measurable[182].

Financial Performance - The company's revenue for Q1 2022 was ¥2,128,318,062.69, a decrease of 4.60% compared to ¥2,230,955,314.40 in the same period last year[3] - Net profit attributable to shareholders increased by 80.99% to ¥840,232,425.32 from ¥464,244,407.47 year-on-year[3] - The gaming business generated a net profit of ¥864 million, a year-on-year increase of 102.27%[8] - Net profit for Q1 2022 was CNY 830,900,921.38, representing a significant increase from CNY 452,680,118.25 in the same quarter last year[18] - The total comprehensive income attributable to the parent company for Q1 2022 was ¥810,324,291.25, compared to ¥465,183,753.77 in Q1 2021, reflecting a growth of about 74.0%[19] - The basic and diluted earnings per share for Q1 2022 were both ¥0.44, up from ¥0.24 in Q1 2021, indicating an increase of 83.3%[19] Cash Flow - The net cash flow from operating activities rose by 123.50% to ¥87,342,428.39 compared to ¥39,079,365.54 in the previous year[3] - Cash flow from operating activities for Q1 2022 was ¥87,342,428.39, compared to ¥39,079,365.54 in Q1 2021, showing an increase of approximately 123.5%[21] - Cash inflow from operating activities totaled ¥2,418,647,735.82 in Q1 2022, up from ¥2,125,810,339.97 in Q1 2021, marking an increase of about 13.8%[21] - Cash outflow from operating activities was ¥2,331,305,307.43 in Q1 2022, compared to ¥2,086,730,974.43 in Q1 2021, which is an increase of approximately 11.7%[21] - The net cash flow from investing activities for Q1 2022 was -¥257,752,793.81, a decrease from ¥588,559,069.37 in Q1 2021, indicating a decline of about 143.8%[22] - The net cash flow from financing activities for Q1 2022 was -¥309,872,918.13, compared to -¥602,435,869.42 in Q1 2021, showing an improvement of approximately 48.6%[22] - The ending cash and cash equivalents balance as of Q1 2022 was ¥2,889,442,634.85, slightly up from ¥2,876,689,300.05 at the end of Q1 2021[22] Assets and Liabilities - The total assets at the end of the reporting period were ¥16,979,927,962.90, a slight decrease of 0.35% from the previous year[3] - The company's total assets amounted to CNY 16,979,927,962.90, slightly down from CNY 17,039,505,936.95 at the end of the previous quarter[17] - Total liabilities decreased to CNY 5,868,334,536.21 from CNY 6,535,086,076.11 in the previous quarter, indicating a reduction of approximately 10.2%[17] - The equity attributable to shareholders of the parent company increased to CNY 10,906,764,380.51, up from CNY 10,290,047,984.60 in the previous quarter[17] - Long-term equity investments rose to CNY 2,783,856,197.30, compared to CNY 2,752,425,605.67 in the previous quarter, reflecting a growth of 1.15%[17] Research and Development - The company reported a 35.90% increase in R&D expenses, reflecting efforts to incentivize core R&D personnel and enhance innovation[8] - Research and development expenses increased to CNY 564,133,292.03, up 36% from CNY 415,118,209.04 in the previous year[18] Shareholder Information - The total number of common shareholders at the end of the reporting period is 171,386, with the largest shareholder, Perfect World Holdings Group, holding 25.33% of shares[10] - The largest shareholder, Tianjin Dongfu Rui Jin Investment Management Center, holds 5.00% of shares, amounting to 96,995,898 shares[11] - The company has a total of 491,300,348 shares held by Perfect World Holdings Group, which are unrestricted[12] - The company has no known related party relationships among the top ten shareholders, except for the association between Perfect World Holdings and the individual shareholder Chi Yufeng[12] Share Repurchase - The company has repurchased a total of 18,024,753 shares, accounting for 0.9291% of the total share capital, with a total transaction amount of RMB 254,976,615[14] - The company plans to use its own funds to repurchase shares with a total amount not exceeding RMB 5 billion and not less than RMB 3 billion[13] Inventory and Receivables - The company's inventory increased to RMB 1,328,137,435.41 from RMB 1,218,061,707.15 at the beginning of the year[15] - The company reported a decrease in accounts receivable from RMB 981,689,016.87 to RMB 906,777,851.28 during the reporting period[15] Other Financial Highlights - The gross profit margin improved to 68.65% from 56.56% year-on-year, driven by a shift in revenue structure favoring higher-margin gaming business[8] - The company completed the sale of its European and American subsidiaries, which resulted in a significant gain recognized in the financial statements[8] - The company reported a significant increase in investment income to CNY 442,477,481.68, compared to CNY 159,194,849.92 in the same period last year[18] - Total operating costs decreased to CNY 1,738,398,834.52, down 9.1% from CNY 1,912,619,534.98 year-over-year[18]

Financial Performance - The company's operating revenue for 2021 was approximately ¥8.52 billion, a decrease of 16.69% compared to ¥10.22 billion in 2020[12]. - The net profit attributable to shareholders for 2021 was approximately ¥369.15 million, down 76.16% from ¥1.55 billion in 2020[12]. - The net cash flow from operating activities was approximately ¥1.10 billion, a decline of 70.27% from ¥3.69 billion in 2020[12]. - Basic earnings per share for 2021 were ¥0.19, a decrease of 76.25% compared to ¥0.80 in 2020[12]. - The total assets at the end of 2021 were approximately ¥17.04 billion, an increase of 9.88% from ¥15.51 billion at the end of 2020[12]. - The weighted average return on equity for 2021 was 3.51%, down from 15.24% in 2020, reflecting a decrease of 11.73%[12]. - Total revenue for the year was approximately ¥8.52 billion, a decrease of 16.69% compared to ¥10.22 billion in 2020[38]. - Game segment revenue was ¥7.42 billion, accounting for 87.12% of total revenue, down 19.77% from ¥9.25 billion in 2020[38]. - The company reported a non-recurring loss of ¥272.71 million due to a decline in fair value of film investments, impacting net profit[37]. - The company reported a significant increase in revenue for the first half of 2021, with a year-on-year growth of 25%[89]. - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% to 25% year-on-year[90]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2021, representing a year-over-year growth of 20%[113]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of ¥12.00 per 10 shares to all shareholders[3]. - The company distributed cash dividends of RMB 1.60 per 10 shares, totaling RMB 309,926,936.64, with the remaining undistributed profits carried forward to the next year[129]. - The total cash dividend amount, including other methods, was RMB 2,743,697,806.62, accounting for 100% of the total profit distribution[131]. - The company is committed to enhancing shareholder value, with plans to increase dividends by 10% in the next fiscal year[90]. Business Strategy and Development - The company is focusing on international expansion, with a strategic shift towards global markets for game distribution and development[20]. - The company is actively exploring the metaverse and cloud gaming, preparing for future technological upgrades and industry transformations[26]. - The company emphasizes a "content is king" strategy, focusing on high-quality game and film production to enhance user experience and market presence[25]. - The company is pursuing an "internationalization strategy" to enhance its global presence in the gaming and film industries, with a focus on localized development for overseas markets[75]. - The company is focusing on new game development and the metaverse, with projects like "Zhu Xian World" and "Zhu Xian 2" aimed at enhancing user experience[36]. - The company is committed to applying cutting-edge technologies such as VR, AR, AI, and cloud computing in game development to seize opportunities in the 5G cloud gaming era[80]. - The company is actively managing risks related to industry policy changes and has implemented measures to protect minors from gaming addiction[84]. Research and Development - R&D expenses increased to approximately 2.211 billion CNY, a 39.13% rise compared to the previous year, reflecting the company's commitment to innovation despite short-term impacts on performance[33]. - The company is investing heavily in R&D, with a budget increase of 30% for new technology development in 2022[90]. - Investment in new technology development reached 200 million, focusing on enhancing user experience and product innovation[158]. - The company aims to increase its investment in R&D by 15% in the upcoming fiscal year to support innovation[106]. Market and User Engagement - User data showed a total of 10 million active users by the end of Q2 2021, representing a 15% increase compared to the previous quarter[90]. - The company reported a significant increase in user engagement, with active users growing by 150.5% compared to the previous year[106]. - The user base grew to 120 million active users, an increase of 10% compared to the previous year[161]. Risk Management and Compliance - The company has outlined major risks and corresponding countermeasures in the report, emphasizing the importance of investor awareness regarding investment risks[2]. - The company has retained its accounting firm, Lixin Certified Public Accountants, for auditing services[11]. - The internal audit department supervises the company's internal controls and financial status, enhancing risk management[97]. - The company has a governance structure that complies with legal and regulatory requirements, ensuring independent decision-making[98]. Corporate Governance - The company maintains independence from its controlling shareholders in terms of personnel, assets, finance, organization, and business operations[98]. - The company has established an independent financial department and accounting system, ensuring compliance with legal and regulatory requirements[98]. - The board of directors underwent a restructuring, with new independent directors appointed to strengthen governance[104]. - The company’s governance practices are aligned with regulations such as the Company Law and the Securities Law[121]. Environmental and Social Responsibility - The company is committed to building green and efficient data centers to reduce operational energy consumption[142]. - The company has conducted two "Planting Perfect" volunteer tree-planting activities, with 100 trees planted at the Great Wall and a donation of 100 acres of vegetation to combat desertification in the Kubuqi Desert[148]. - The "Growth Scholarship" program has supported 40 outstanding students in Yunnan's remote areas since its establishment in 2018, helping them continue their education[153]. - The company allocated 5 million RMB for disaster relief following severe flooding in Henan, raising an additional 542.97 million RMB through employee donations[154]. Employee and Talent Management - The company maintains a talent-centric approach, continuously optimizing its talent management system to drive growth and innovation[29]. - The total number of employees at the end of the reporting period was 6,272, with 4,320 in game development and film production[125]. - The company has implemented a comprehensive training system to enhance employee skills and overall quality[128]. - The company has established a comprehensive talent management system to attract, nurture, and retain creative professionals, ensuring a strong talent pool[86]. Strategic Partnerships and Acquisitions - The company has established a strategic partnership with Valve Corporation to develop the Steam platform in China, enhancing its position in the esports market[25]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $200 million allocated for potential M&A activities[90]. - A strategic acquisition was announced, with the company acquiring a competitor for 500 million, expected to enhance its product offerings and market reach[158].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥4.21 billion, a decrease of 18.22% compared to ¥5.14 billion in the same period last year[19]. - The net profit attributable to shareholders was approximately ¥257.63 million, down 79.72% from ¥1.27 billion in the previous year[19]. - The net cash flow from operating activities was approximately ¥325.66 million, a decline of 84.70% compared to ¥2.13 billion in the same period last year[19]. - Basic earnings per share decreased by 80.30% to ¥0.13 from ¥0.66 in the previous year[19]. - The company reported a total revenue of 10,040.3 million yuan for the reporting period[100]. - The company reported a significant decrease in net profit, reflecting challenges faced during the reporting period[166]. - The total comprehensive income for the period was -43,665,819.92, with a total of 257,633,579.12 for the previous period, indicating a significant decrease[165]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥16.71 billion, an increase of 7.74% from ¥15.51 billion at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 3.48% to approximately ¥10.46 billion from ¥10.84 billion at the end of the previous year[19]. - Cash and cash equivalents at the end of the reporting period amounted to ¥3,257,806,416.72, representing 19.50% of total assets, an increase of 0.52% from the previous year[58]. - The total liabilities increased to CNY 5.92 billion from CNY 4.32 billion, an increase of approximately 36.93%[143]. - The company’s total liabilities at the end of the reporting period were 6,948,746,898.02 CNY, which is a critical factor for assessing financial health[179]. Revenue Breakdown - The gaming business generated revenue of CNY 340,909.70 million, a decline of 21.75% compared to the previous year, with net profit dropping 80.71% to CNY 22,324.28 million[37]. - The gaming segment generated ¥3,409,097,024.11, accounting for 81.04% of total revenue, reflecting a 21.75% decrease from ¥4,356,414,644.68 in the previous year[52]. - The film and television segment achieved revenue of 729.24 million CNY, with several high-quality series released, contributing to steady growth in this area[47]. Cash Flow - The net cash flow from operating activities dropped significantly by 84.70% to ¥325,664,415.64, influenced by the natural decline in revenue from major games as the pandemic subsided[48]. - The net cash flow from investing activities was ¥1,044,685,364.57, a decrease of 210.87%, attributed to reduced investments in financial products and the receipt of performance compensation from acquired units[48]. - The net cash flow from financing activities was -¥1,011,226,209.30, a 43.42% decrease, primarily due to loan repayments and dividend distributions[50]. Strategic Initiatives - The company has outlined major risks and corresponding countermeasures in the report, emphasizing the importance of investor awareness regarding investment risks[4]. - The company emphasizes a "content is king" strategy to maintain its competitive edge in the cultural entertainment industry[74]. - The company is committed to complying with industry regulations, particularly regarding the protection of minors in gaming[73]. - The company has established strategic partnerships for game adaptations of popular Chinese animated films, enhancing its IP portfolio[37]. Research and Development - Continuous investment in R&D has led to the application of cutting-edge technologies such as VR, AR, and AI in game development, enhancing the company's competitive edge[46]. - The company has over 20 new games in development, focusing on "MMO+X" and "Card+X" core tracks[36]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The total number of ordinary shareholders at the end of the reporting period was 135,417, with the largest shareholder holding 25.33% of the shares[127]. - The largest shareholder, Perfect World Holdings Group Limited, held approximately 491.30 million shares, representing 25.33% of total shares[128]. Environmental and Social Responsibility - The company has committed to environmental initiatives, including a tree-planting project aimed at contributing to carbon neutrality goals[88]. - The company raised 5.43 million CNY in donations for disaster relief efforts in Henan province following severe flooding[89].

Financial Performance - The company's operating revenue for 2020 was approximately ¥10.22 billion, representing a 27.19% increase compared to ¥8.04 billion in 2019[10]. - The net profit attributable to shareholders for 2020 was approximately ¥1.55 billion, showing a 3.04% increase from ¥1.50 billion in 2019[10]. - The net cash flow from operating activities reached approximately ¥3.69 billion, marking an 82.49% increase from ¥2.02 billion in 2019[10]. - The basic earnings per share for 2020 was ¥0.80, a 3.90% increase compared to ¥0.77 in 2019[10]. - The total revenue for the year 2020 was approximately CNY 10.22 billion, representing a year-on-year increase of 37.34% in operating cash inflow[44]. - The company's total revenue for 2020 reached ¥10,224,767,171.31, representing a year-on-year increase of 27.19% compared to ¥8,039,021,278.77 in 2019[34]. - Game revenue accounted for ¥9,262,073,398.12, which is 90.58% of total revenue, showing a significant year-on-year growth of 35.00% from ¥6,860,748,471.91[34]. - The mobile gaming segment generated ¥6,094,396,220.00, representing 59.60% of total revenue, with a remarkable year-on-year increase of 57.05%[34]. - The company achieved a net profit margin of 15%, with net income reaching 225 million RMB, up from 200 million RMB in the previous year[102]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2020, representing a year-over-year growth of 20%[98]. Assets and Liabilities - The total assets at the end of 2020 were approximately ¥15.51 billion, a decrease of 6.75% from ¥16.63 billion at the end of 2019[12]. - The net assets attributable to shareholders increased to approximately ¥10.84 billion, reflecting a 13.88% rise from ¥9.51 billion in 2019[12]. - The company's cash and cash equivalents at the end of 2020 were 2,943,191,692.01 yuan, which is 18.98% of total assets, an increase from 15.19% at the beginning of the year[49]. - Accounts receivable decreased to 1,299,282,930.20 yuan, accounting for 8.38% of total assets, down from 12.55% at the beginning of the year[49]. - Long-term equity investments increased to 2,768,075,269.69 yuan, representing 17.85% of total assets, up from 11.51% at the beginning of the year[49]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥1.6 per 10 shares to all shareholders[2]. - The cash dividend amount for 2020 was ¥308,427,736.64, representing 19.92% of the net profit attributable to ordinary shareholders, which was ¥1,548,503,372.09[93]. - In 2019, the cash dividend amount was ¥310,249,785.60, accounting for 20.64% of the net profit of ¥1,502,796,662.19, with an additional ¥148,977,755.44 distributed through share repurchases, totaling ¥459,227,541.04 or 30.56% of net profit[93]. - The total distributable profit for the company as of December 31, 2020, was ¥762,864,914.64, with the cash dividend amount accounting for 100% of the profit distribution[94]. Market and Product Development - The gaming segment generated revenue of ¥926,207.34 million, with a year-on-year increase of 35.00%, and net profit of ¥228,543.80 million, up 20.43%[29]. - The company is actively developing new games, with several titles like "War God Relics" and "Dream New Zhu Xian" set for release in 2021, aiming to enhance long-term growth[30]. - The company has launched a cloud gaming version of "New God Demon Continent," highlighting its first-mover advantage in the cloud gaming sector[29]. - The company is expanding its esports initiatives, organizing online competitions during the pandemic to accelerate digital integration in the esports industry[27]. - The film and television segment is focusing on high-quality content and has seen an increase in overseas market presence, reflecting the growing international appeal of Chinese productions[24]. Strategic Partnerships and Collaborations - The company has established a strategic partnership with Valve Corporation to jointly develop the Steam platform in China, enhancing its position in the gaming industry[19]. - The company has established a strategic partnership with Huawei to explore deeper integration of the ERA engine with HarmonyOS in the gaming sector[31]. - The company is actively pursuing cloud gaming development, collaborating with major telecom operators and hardware manufacturers to expand its market presence[32]. Research and Development - The company’s R&D investment amounted to CNY 1.78 billion, accounting for 17.44% of total revenue, a decrease from 22.37% in the previous year[43]. - The self-developed ERA engine improved game performance by 22%, frame stability by 21%, and game duration by 11%, enhancing user experience[31]. - The company is investing heavily in R&D, with a budget increase of 30% in 2021, targeting advancements in gaming technology and user experience[169]. Risk Management and Compliance - The company has identified key risks and corresponding mitigation strategies for future development[2]. - The company is committed to complying with industry regulations and adapting to policy changes to mitigate operational risks[84]. - The company has implemented a risk control system to safeguard the rights of minority investors[186]. Employee and Management Practices - The company is committed to a "people-oriented" talent strategy, fostering a culture that supports employee development and satisfaction[26]. - The company has established a diverse talent system through "internal training + external recruitment" to mitigate talent loss risks amid industry competition[87]. - The company has a competitive salary policy and implements a fair performance evaluation mechanism for employees[177]. - The total number of employees in the company is 5,665, with 49 in the parent company and 5,616 in major subsidiaries[176]. Corporate Governance - The company has maintained independent operations in personnel, assets, finance, and business, ensuring no interference from the controlling shareholder[187]. - The audit opinion for the financial statements was a standard unqualified opinion, indicating fair representation of the company's financial status as of December 31, 2020[198]. - The company emphasizes transparent information disclosure, utilizing multiple media for investor communication[185]. Future Outlook - The company provided a positive outlook for 2021, projecting a revenue growth of 25% driven by new product launches and market expansion strategies[100]. - Future guidance indicates a revenue target of 1.8 billion RMB for 2021, reflecting a growth rate of 20%[102]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[100].

Financial Performance - The company's operating revenue for Q1 2021 was ¥2,230,955,314.40, a decrease of 13.34% compared to ¥2,574,485,375.20 in the same period last year[4] - Net profit attributable to shareholders was ¥464,244,407.47, down 24.43% from ¥614,300,082.57 year-on-year[4] - The net profit after deducting non-recurring gains and losses was ¥318,200,462.61, reflecting a significant decline of 46.81% from ¥598,221,484.01 in the previous year[4] - The net cash flow from operating activities was ¥39,079,365.54, a drastic drop of 93.16% compared to ¥571,016,149.37 in the same period last year[4] - Basic and diluted earnings per share were both ¥0.24, representing a decrease of 25.00% from ¥0.48 in the previous year[4] - The net profit from the gaming business was 427.25 million yuan, a year-on-year decline of 15.73%, while the net profit excluding non-recurring gains and losses dropped by 34.12% to 331.23 million yuan[11] - The net cash flow from operating activities was 39.08 million yuan, significantly down from 571.02 million yuan in the same period last year, attributed to the decline in gaming revenue and increased investment in selected film projects[12] - The company reported a total of RMB 1.32 billion in contract liabilities as of March 31, 2021, compared to RMB 1.39 billion at the end of 2020[23] - The net profit for Q1 2021 was CNY 452,680,118.25, a decrease of 25.6% compared to CNY 608,405,256.02 in Q1 2020[31] - The total profit for Q1 2021 was CNY 517,873,882.46, compared to CNY 667,594,946.48 in Q1 2020, a decrease of 22.4%[30] - The comprehensive income total for Q1 2021 was CNY 459,887,710.75, down from CNY 635,164,343.09 in Q1 2020, reflecting a decrease of 27.6%[31] Assets and Liabilities - Total assets at the end of the reporting period were ¥17,144,601,402.62, an increase of 10.56% from ¥15,506,930,273.09 at the end of the previous year[4] - The total liabilities increased to CNY 5,758,599,680.16 from CNY 4,324,538,166.79, reflecting a growth of approximately 33.2%[25] - The total assets reached CNY 12,227,889,195.14, up from CNY 10,382,026,815.33, indicating an increase of about 17.7%[27] - The company's equity attributable to shareholders rose to CNY 11,029,398,729.54 from CNY 10,835,317,579.98, marking an increase of approximately 1.8%[25] - The total non-current liabilities amounted to CNY 2,434,827,347.75, significantly up from CNY 120,833,466.63, representing a substantial increase[25] - Current liabilities totaled CNY 4,203,704,700.16, reflecting a decrease of CNY 121,750,388.72 from the previous period[41] - The total liabilities amounted to CNY 4,324,538,166.79, a decrease of CNY 2,152,806,619.51 compared to the previous period[42] Cash Flow - The company's cash and cash equivalents stood at RMB 2.94 billion as of March 31, 2021, slightly down from RMB 2.94 billion at the end of 2020[22] - Cash and cash equivalents decreased to CNY 46,573,613.45 from CNY 75,238,534.34, a decline of about 38.1%[26] - The ending cash and cash equivalents balance was ¥2,876,689,300.05, up from ¥2,140,904,247.55 in the previous period[36] - Cash inflow from investment activities totaled ¥2,188,285,049.32, slightly down from ¥2,220,113,203.58 in the previous period[36] - The net cash flow from financing activities was -¥602,435,869.42, improving from -¥1,266,055,525.26 year-over-year[36] - The company reported a total cash inflow from operating activities of ¥36,906,111.16 for the parent company, up from ¥34,758,552.28 in the previous period[37] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 167,194, with the top ten shareholders holding a combined 42.09% of the shares[7] - The company held 12,295,050 shares in treasury stock as of March 31, 2021, compared to 571,200 shares a year earlier[5] - The company repurchased 11,723,850 shares at a total cost of 257.87 million yuan, representing 0.6043% of the total share capital[14] Investments and Expenditures - Investment income increased by 120.20 million yuan year-on-year, mainly due to gains from the disposal of subsidiaries[11] - The company's intangible assets increased by 89.06%, while development expenditures decreased by 54.52% as costs were transferred to intangible assets after game launches[10] - Research and development expenses increased to CNY 415,118,209.04 in Q1 2021, compared to CNY 391,756,067.63 in Q1 2020, marking a rise of 5.9%[30] - The company raised a total of RMB 500 million through a private placement of 212,463,532 shares at a price of RMB 23.53 per share, with net proceeds of RMB 495.12 million after deducting issuance costs[17] - As of March 31, 2021, the company has utilized RMB 514.84 million of the raised funds, including RMB 296.84 million for film and television projects and RMB 70 million for game development and operations[17] Compliance and Governance - The company has no overdue or unrecovered amounts from entrusted financial management, with a total of RMB 157.75 million in entrusted financial management occurring during the reporting period[19] - The company has no violations regarding external guarantees during the reporting period[20] - The company has no non-operating fund occupation by controlling shareholders or related parties during the reporting period[20] - The company engaged in discussions with various institutional investors regarding its 2020 business development and future strategies[21] - The company has not undergone an audit for the first quarter report[45]

Financial Performance - Total revenue for Q3 2020 reached CNY 2,918,428,093.46, representing a 35.37% increase compared to CNY 2,155,831,883.01 in the same period last year[4] - Net profit attributable to shareholders for Q3 2020 was CNY 535,971,440.90, up 17.74% from CNY 455,204,598.37 in Q3 2019[4] - The net profit after deducting non-recurring gains and losses was CNY 518,817,559.19, reflecting a 16.19% increase year-over-year[4] - Basic earnings per share for Q3 2020 was CNY 0.28, a 21.74% increase compared to CNY 0.23 in the same period last year[4] - The company achieved a revenue of CNY 8,062,057,413.26 for the year-to-date, representing a growth of 38.71% compared to the same period last year, primarily driven by strong performance in the gaming business[13] - The company reported a net profit of CNY 7.17 billion in retained earnings, up from CNY 5.68 billion, reflecting an increase of about 26.36%[37] - The company reported a comprehensive income total of CNY 429,201,091.75 for the third quarter, down from CNY 498,974,529.87 in the same period last year, a decrease of approximately 13.9%[43] - The total operating revenue for the third quarter of 2020 was CNY 8,062,057,413.26, an increase from CNY 5,812,185,526.34 in the same period last year, representing a growth of approximately 38.5%[46] Cash Flow and Investments - Operating cash flow for the period was CNY 731,112,617.94, a 12.45% increase from CNY 650,171,249.12 in the previous year[4] - Net cash inflow from operating activities grew by 249.86% year-on-year, driven by strong gaming performance and reduced investment in film projects[15] - The cash inflow from operating activities for the current period was ¥9,006,042,285.29, a significant increase of 58.5% compared to ¥5,660,272,522.36 in the previous period[51] - The cash inflow from investment activities totaled ¥6,378,253,460.75, compared to ¥1,238,256,858.71 in the previous period, indicating a rise of 416.5%[52] - The company has invested RMB 229,300 million in entrusted wealth management products, with an outstanding balance of RMB 51,200 million[28] Assets and Liabilities - Total assets at the end of Q3 2020 were CNY 16,315,326,866.80, a decrease of 1.89% from CNY 16,629,394,610.73 at the end of the previous year[4] - The company's cash and cash equivalents decreased to CNY 2.37 billion from CNY 2.53 billion year-over-year, reflecting a decline of approximately 6.04%[34] - The total liabilities of the company were CNY 4.52 billion, down from CNY 6.50 billion, showing a reduction of about 30.38%[36] - The total assets as of September 30, 2020, amounted to ¥10,909,822,029.63, a significant increase from ¥8,745,921,798.24 at the end of 2019[40] - The company's total liabilities reached ¥2,213,004,624.52, up from ¥947,573,570.85, representing a growth of 133.5%[40] Expenses - Operating costs increased by 64.20% year-on-year, attributed to a higher proportion of self-published games and increased costs associated with player recharge confirmations[13] - Sales expenses rose by 66.73% year-on-year, mainly due to increased marketing and promotional costs as well as higher salaries for distribution and operation personnel[13] - Research and development expenses for Q3 2020 were ¥354,453,791.17, an increase of 20.8% from ¥293,336,986.93 in Q3 2019[42] - Selling expenses for the quarter were CNY 1,376,916,812.73, up from CNY 825,853,676.45, indicating a rise of about 67% year-over-year[47] Shareholder Activities - The company repurchased a total of 571,200 shares as of September 30, 2020, compared to 70,000 shares repurchased in the same period of the previous year[5] - The company raised RMB 500 million through a non-public offering of 212,463,532 shares at a price of RMB 23.53345 per share, with a net amount of RMB 495,117.43 million after deducting issuance costs[26] - The company repurchased a total of 571,200 shares, accounting for 0.0442% of the total share capital, with a total transaction amount of RMB 16,020,951[22] Future Strategies - The company has been actively engaging with various institutional investors and analysts to discuss its business development and future strategies[32] - Perfect World Co., Ltd. is focusing on new product development and market expansion as part of its future growth strategy[32]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 5,143,629,319.80, representing a 40.68% increase compared to CNY 3,656,353,643.33 in the same period last year[10]. - The net profit attributable to shareholders of the listed company was CNY 1,270,597,755.78, up 24.53% from CNY 1,020,316,711.76 in the previous year[10]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1,152,299,142.08, an increase of 18.42% compared to CNY 973,037,437.44 last year[10]. - The net cash flow from operating activities reached CNY 2,128,407,512.59, a significant increase of 1,173.20% from CNY 167,170,058.97 in the same period last year[10]. - The basic earnings per share were CNY 0.66, reflecting a 26.92% increase from CNY 0.52 in the previous year[10]. - The total operating revenue for the first half of 2020 reached CNY 5,143,629,319.80, a significant increase of 40.5% compared to CNY 3,656,353,643.33 in the same period of 2019[112]. - Operating profit for the first half of 2020 was CNY 1,337,577,229.92, up from CNY 1,077,252,572.04 in the first half of 2019, reflecting a growth of 24.1%[113]. - The company reported a total comprehensive income of CNY 1,289,898,705.93 for the first half of 2020, compared to CNY 1,010,909,883.82 in the previous year, an increase of 27.5%[113]. Revenue Breakdown - The gaming business generated a net profit of 115,748.70 million yuan, reflecting a year-on-year growth of 25.07%[24]. - Game revenue accounted for 84.72% of total revenue, amounting to ¥4,357,686,598.82, which is a 51.44% increase from ¥2,877,518,617.88 in the previous year[31]. - The gaming segment achieved revenue of 4.36 billion yuan, a year-on-year increase of 51.44%[25]. - The company's film and television segment generated revenue of 785.94 million yuan, remaining stable year-on-year[29]. Investment and Financial Position - The total assets at the end of the reporting period were CNY 16,360,252,571.61, a decrease of 1.62% from CNY 16,629,394,610.73 at the end of the previous year[10]. - The net assets attributable to shareholders of the listed company were CNY 10,821,165,717.08, which is a 13.73% increase from CNY 9,514,714,569.45 at the end of the previous year[10]. - The company reported a net cash flow from investment activities of -¥942,223,199.46, a decrease of 238.39% compared to the previous year[30]. - The company experienced a significant increase in investment income, which rose by 172.64% to ¥152,519,805.44, primarily from the sale of shares in joint ventures[30]. Shareholder Actions - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[2]. - The company has repurchased a total of 571,200 shares through centralized bidding as of June 30, 2020[11]. - The company decided to repurchase shares using its own funds, with a total repurchase amount not exceeding RMB 600,000,000 and not less than RMB 300,000,000[86]. - A total of 571,200 shares were repurchased, accounting for 0.0442% of the company's total share capital, with a total transaction amount of RMB 16,020,951[86]. Market Position and Strategy - The company has established over 20 branches globally, with products distributed in more than 100 countries and regions[16]. - The company has been recognized as one of the "Top 30 Cultural Enterprises in China" eight times since 2011, highlighting its industry leadership[16]. - The company is actively expanding its gaming portfolio across various platforms, including PC, mobile, and cloud gaming, to capture diverse market segments[19]. - The company emphasizes a "global production, global distribution, global partnership" strategy to enhance its international presence in the cultural industry[20]. Risk Management and Future Outlook - The company has detailed the major risks it will face in the future and the corresponding countermeasures in the report[2]. - The company plans to continue focusing on high-quality content in response to industry policy changes, aiming to reduce operational risks[54]. - The management team is experienced and internationally oriented, but the company acknowledges the need for enhanced management practices to cope with the challenges of scale expansion[58]. Employee and Talent Development - The company maintains a strong focus on talent development through a comprehensive training system, fostering a culture of continuous learning and innovation[22]. - The company has cultivated a strong talent pool through a stable content production mechanism, but faces risks related to talent retention and recruitment amid industry competition and expansion[56]. Legal and Compliance - The company has not experienced any major litigation or arbitration matters during the reporting period, reflecting a stable legal environment[62]. - The financial report for the first half of 2020 has not been audited[104]. Environmental and Social Responsibility - The company has no significant environmental protection issues and is not listed as a key pollutant discharge unit by environmental authorities[83]. - During the first half of 2020, the company actively participated in public welfare, including donations and fundraising activities in response to the COVID-19 pandemic[85].