Financial Performance - The company reported a total revenue of 293.84 million yuan, a decrease of 37.32% year-on-year[8]. - The total profit amounted to -128.13 million yuan, reflecting a decline of 330.06% compared to the previous year[8]. - The net profit attributable to the parent company was -134.96 million yuan, down 360.93% year-on-year[8]. - The company's operating revenue for 2020 was approximately ¥293.84 million, a decrease of 37.32% compared to ¥468.83 million in 2019[25]. - The net profit attributable to shareholders was a loss of approximately ¥134.96 million, representing a decline of 360.93% from a profit of ¥51.72 million in 2019[25]. - The company reported a net profit of 9,809,440.42 yuan for the year 2020, a significant decrease from 49,824,838.85 yuan in 2019, indicating a decline of approximately 80.3%[32]. - The company reported a significant decrease in self-operated game revenue, down 43.86% to CNY 7,889,771.48[58]. - The company faced a net loss of RMB 134,958,387.66 in 2020, indicating financial challenges despite having positive distributable profits[115]. Revenue Breakdown - The cloud service business generated ¥142.93 million, accounting for 48.64% of total revenue, but saw a decline of 23.44% from ¥186.68 million in 2019[52]. - The gaming business revenue was ¥145.71 million, representing 49.59% of total revenue, down 45.03% from ¥265.05 million in 2019[52]. - The company's total revenue from online gaming business was CNY 145,712,479.64, a decrease of 45.03% year-over-year[56]. - The cloud services business generated revenue of CNY 142,928,353.79, down 23.44% compared to the previous year[56]. Cash Flow and Assets - The net cash flow from operating activities increased significantly to approximately ¥36.17 million, up 1,077.01% from ¥3.07 million in 2019[25]. - The total assets at the end of 2020 were approximately ¥1.05 billion, a decrease of 26.69% from ¥1.44 billion at the end of 2019[25]. - The company's cash and cash equivalents decreased by 59.49% compared to the beginning of the year, primarily due to repayments of loans and other financial obligations[39]. - The net cash flow from investment activities increased by 174.50% to ¥83,108,509.52, primarily due to the maturity of financial products and reduced long-term asset expenditures[68]. - The net cash flow from financing activities decreased by 493.52% to -¥187,540,890.90, mainly due to reduced working capital borrowings[68]. Strategic Initiatives - The company aims to enhance market expansion efforts and develop new high-quality games to maintain competitive advantages[9]. - The company plans to enhance its game business by developing red-themed mobile games and expanding into various game genres to mitigate risks and costs associated with self-developed projects[101]. - The company is actively expanding its cloud value-added services, including electronic contracts and blockchain applications[47]. - The company has established strategic partnerships in cloud security and developed its own intelligent call center platform, targeting the financial services sector[37]. - The company is focusing on enhancing its cloud services and game products to adapt to market demands and increase market share[106]. Regulatory and Compliance - The company is actively monitoring industry regulations to mitigate potential policy risks[10]. - The company has committed to complying with government regulations to reduce potential policy risks and is actively monitoring industry laws[106]. - The company has made commitments regarding tax obligations and will bear any penalties or losses incurred due to tax issues[118]. - The company has emphasized ongoing optimization and improvement of its game products to adapt to market demands, which has extended the development cycles of several projects[87]. Human Resources and Talent Management - The company has a strong focus on talent development, expanding its management and core technology teams during the reporting period[44]. - The number of R&D personnel increased to 105, representing 25.99% of the total workforce, with R&D investment amounting to ¥35,906,392.53, which is 12.22% of operating revenue[66]. - The company has established a compensation management system that combines internal equity and external competitiveness to attract and retain talent[192]. - The company emphasizes employee training and has developed customized training plans based on annual development needs[194]. Market Trends and Industry Insights - The gaming industry in China saw a user base exceeding 660 million, with actual sales revenue reaching 278.69 billion yuan, a year-on-year growth of 20.71%[8]. - The IDC business market in China is expected to grow at a compound annual growth rate of 26.9% from 2019 to 2022[8]. - The Chinese gaming market generated a revenue of 278.69 billion in 2020, with a year-on-year growth of 20.71%[98]. - The gaming industry faces risks including market competition, regulatory challenges, and the need for high-quality game development to meet player expectations[103]. Shareholder and Governance - The company has committed to maintaining "five independences" in personnel, assets, finance, organization, and business to ensure operational independence[116]. - The company has established a framework to ensure that any related party transactions are conducted at fair market prices[117]. - The board of directors consists of 5 members, including 3 independent directors, with the current term running from May 2020 to May 2023[182]. - The company has implemented a transparent performance evaluation and incentive mechanism for senior management[199]. Future Outlook - The company expects a revenue growth of 10-15% for the upcoming fiscal year, driven by new product launches and market expansion strategies[187]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[187]. - A strategic acquisition of a local tech firm is anticipated to enhance the company's technological capabilities and user engagement[188].

Financial Performance - Operating revenue for the reporting period was CNY 68,980,431.19, an increase of 3.71% year-on-year, while year-to-date revenue decreased by 19.12% to CNY 200,253,784.95[7] - Net profit attributable to shareholders was a loss of CNY 7,227,441.66, a decline of 117.23% compared to the same period last year, with year-to-date net profit down 97.62% to CNY 1,633,993.13[7] - Basic and diluted earnings per share were both CNY -0.03, a decrease of 118.75% compared to the same period last year[7] - The net profit for the third quarter was a loss of CNY 5,852,908.21, compared to a net profit of CNY 41,439,225.24 in the previous year, marking a significant decline[39] - The company reported a total comprehensive income of CNY 2,061,841.62 for Q3 2020, compared to CNY 65,817,953.34 in the same quarter last year[47] - The total comprehensive income for the third quarter was a loss of CNY 4,981,313.74, compared to a comprehensive income of CNY 39,827,852.26 in the same period last year[40] Cash Flow - The net cash flow from operating activities was a negative CNY 7,048,935.49, representing an increase in outflow of 85.09% year-on-year[7] - Net cash flow from operating activities decreased by 165.31% year-on-year, mainly due to the payment of agency business costs and software and bandwidth fees[19] - The net cash flow from operating activities was -15,603,787.69 CNY, compared to 23,892,823.61 CNY in the previous period, indicating a significant decline[53] - Total cash inflow from operating activities was 796,655,882.94 CNY, while cash outflow was 812,259,670.63 CNY, resulting in a net cash outflow of 15,603,787.69 CNY[53] - Cash flow from investment activities showed a net inflow of 83,488,360.47 CNY, a recovery from a net outflow of -161,962,331.01 CNY in the previous period[54] - Cash inflow from financing activities was 129,000,000.00 CNY, while cash outflow totaled 317,621,520.50 CNY, leading to a net cash outflow of -188,621,520.50 CNY[54] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,160,265,574.07, a decrease of 19.33% compared to the end of the previous year[7] - Total liabilities decreased to CNY 313,600,651.37 from CNY 596,304,082.67 year-over-year[31] - Owner's equity increased to CNY 846,664,922.70 from CNY 842,045,067.76[32] - Cash and cash equivalents decreased by 82.09% compared to the beginning of the year, primarily due to repayment of working capital loans and payments for equity acquisitions and project costs[19] - Current liabilities decreased significantly to CNY 262,187,862.15 from CNY 551,360,474.96[31] - Total current liabilities decreased by CNY 7,195,026.32 due to changes in contract liabilities[61] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,529[11] - The largest shareholder, Baode Technology Group Co., Ltd., held 12.44% of shares, totaling 32,763,400 shares[11] Government Support - The company received government subsidies amounting to CNY 6,632,680.54 during the reporting period[8] Investment and Income - Investment income decreased by 73.29% year-on-year, due to the recognition of dividends from investment companies and income from joint ventures[19] - Long-term equity investments amounted to CNY 50,609,911.87, up from CNY 45,978,483.29 year-over-year[30] - The company recorded investment income of CNY 2,144,588.81, a decrease from CNY 41,809,634.60 year-over-year[38] Operating Costs and Expenses - Operating costs increased by 0.67% year-on-year, driven by higher maintenance costs for data centers and bandwidth services, while game business costs decreased[19] - Research and development expenses increased to CNY 9,331,888.27 from CNY 7,801,667.57, reflecting a growth of approximately 19.6% year-over-year[38] - Sales expenses rose to CNY 17,621,878.12 from CNY 13,332,745.38, indicating an increase of approximately 32.3%[38] Other Financial Metrics - The weighted average return on net assets was -0.87%, down 5.92% year-on-year[7] - The company reported a net profit of CNY 174,121,676.87 in retained earnings, down from CNY 178,939,268.17[32] - The company incurred a credit impairment loss of CNY -3,063,675.09 in Q3 2020, contrasting with a gain of CNY 560,438.12 in Q3 2019[46]

Financial Performance - Total revenue for Q1 2020 was ¥66,399,829.54, a decrease of 22.59% compared to ¥85,773,149.74 in the same period last year[7] - Net profit attributable to shareholders was ¥5,088,055.82, down 57.54% from ¥11,982,253.13 year-on-year[7] - Net profit excluding non-recurring gains and losses was ¥1,396,208.99, a decline of 76.97% from ¥6,061,930.25 in the previous year[7] - Basic earnings per share decreased by 60.00% to ¥0.02 from ¥0.05 year-on-year[7] - Operating revenue for the period was 66.40 million yuan, a decrease of 22.59% year-on-year, attributed to a decline in game business revenue[18] - Operating profit decreased by 63.42% year-on-year to 3.21 million yuan, while total profit decreased by 59.29% to 5.47 million yuan[18] - The company reported a total comprehensive income of CNY 3,637,351.57 for Q1 2020, compared to CNY 11,867,873.00 in the previous year, a decline of about 69.4%[47] - The net profit for Q1 2020 was CNY 4,532,902.85, down from CNY 11,855,262.20 in the same period last year, representing a decline of approximately 61.8%[46] - The operating profit for Q1 2020 was CNY 3,213,045.55, compared to CNY 8,784,457.46 in the previous year, indicating a decrease of about 63.4%[46] Cash Flow and Assets - Net cash flow from operating activities was -¥12,617,906.10, a decrease of 147.77% compared to ¥26,416,249.05 in the same period last year[7] - The company's cash and cash equivalents decreased by 74.27% compared to the beginning of the year, primarily due to repayment of working capital loans and payments for equipment procurement and project costs[17] - The total current assets decreased to ¥459,071,269.64 from ¥669,953,511.72, indicating a decline of approximately 31.4%[35] - The total amount of raised funds used for investment projects reached RMB 34,951 million, with a utilization rate of 34.01%[24] - The total assets at the end of the reporting period were ¥1,220,854,605.03, down 15.12% from ¥1,438,349,150.43 at the end of the previous year[7] - The total cash and cash equivalents at the end of the period were CNY 69,614,445.99, down from CNY 312,113,989.80 in the previous period[55] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 39,638[10] - The largest shareholder, Shenzhen Baode Investment Holdings, held 27.37% of the shares, totaling 72,163,262 shares[10] - Net assets attributable to shareholders increased by 0.65% to ¥839,567,186.27 from ¥834,144,421.73 at the end of the previous year[7] Investment and Projects - The company plans to launch new products, including a sports competitive game and two RPG games, starting in the second quarter[18] - The development project for the 3D game "Alliance" has a total investment of RMB 5,696 million, with a completion rate of 112.13%[23] - The company has invested RMB 11,500 million in the Suzhou R&D center project, with RMB 709.42 million utilized by the report date[23] - The acquisition of a 51% stake in Shanghai Meifeng Digital Technology Co., Ltd. was completed for RMB 14,280 million, with a utilization rate of 100%[23] - The company has allocated RMB 30 million to increase investment in the operation and R&D of Zhuoye Web Games[27] Challenges and Issues - The company reported that the 3D game "Alliance" did not meet its expected operational status due to extended development cycles, with the initial launch date set for November 30, 2010, and the game ultimately going offline[26] - The 2.5D games "Three Kingdoms Hero" and "New Song Legend" faced stability and playability issues during testing, leading to their offline status after failing to achieve expected benefits[26] - The company experienced a significant increase in financial expenses, with interest expenses rising to CNY 2,126,534.22 from CNY 1,797,547.90, an increase of about 18.3%[46] Fund Management - The company has raised a total of RMB 710.755 million, with RMB 349.51 million allocated to committed investment projects, leaving RMB 361.245 million as excess funds for operational use[26] - The company has not disclosed any issues regarding the use and disclosure of raised funds[29] - The company has not forecasted any significant changes in net profit compared to the same period last year[30]

Financial Performance - Revenue for the first half of 2020 reached RMB 200 million, representing a 15% year-over-year growth[21]. - The company's operating revenue for the reporting period was ¥131,273,353.76, a decrease of 27.50% compared to the same period last year[26]. - The net profit attributable to shareholders was ¥8,861,434.79, down 66.81% year-on-year[26]. - The net profit after deducting non-recurring gains and losses was ¥1,128,517.97, reflecting a 94.00% decline compared to the previous year[26]. - The net cash flow from operating activities was -¥8,554,852.20, a decrease of 112.02% from the same period last year[26]. - The company's total assets at the end of the reporting period were ¥1,231,620,954.05, down 14.37% from the end of the previous year[26]. - The company's cash and cash equivalents decreased by 75.67% compared to the beginning of the year, primarily due to repayment of loans and payment for acquisitions[36]. - The accounts receivable decreased by 11.23% compared to the beginning of the year, attributed to improved sales collection[36]. - The company's net profit for the first half of 2020 was -1,039,983.18 yuan, compared to a profit of 4,953,956.98 yuan in the same period of 2019, indicating a significant decline in profitability[167]. - The company reported a total comprehensive income of -1,039,983.18 yuan for the first half of 2020, compared to 4,953,956.98 yuan in the same period of 2019[168]. User Engagement and Market Strategy - The company reported a significant increase in user engagement, with a 25% rise in active users compared to the previous year[5]. - Future guidance indicates an expected revenue growth of 20% for the second half of 2020, driven by new game launches[21]. - The company plans to invest an additional RMB 50 million in new game development to enhance user experience and market competitiveness[5]. - The company has identified a 30% increase in competition within the gaming industry, prompting a strategic focus on innovation and user retention[5]. - The company is exploring potential acquisitions to expand its market share, with a focus on companies that align with its core business strategy[9]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[102]. - A strategic acquisition of a local gaming studio is in progress, which is anticipated to enhance the company's product offerings and increase user retention[99]. Cost Management and Operational Efficiency - The company focused on optimizing internal structure and reducing operating expenses, achieving a 27.64% reduction in sales, management, R&D, and financial expenses[41]. - Operating costs decreased by 6.46% to ¥69,152,985.38 from ¥73,932,187.72, indicating improved cost management[46]. - Sales expenses significantly reduced by 36.82% to ¥29,198,885.54, attributed to decreased advertising expenditures for game products[46]. - Research and development expenses were ¥16,534,922.77, down 15.31% from ¥19,525,048.20, reflecting a strategic focus on cost control[46]. - The company has implemented cost-cutting measures that are expected to reduce operational expenses by 10% in the next fiscal year[101]. Regulatory and Compliance Risks - The company is closely monitoring regulatory changes in the gaming industry to mitigate potential compliance risks[7]. - Regulatory risks exist as the gaming industry is subject to strict government oversight, requiring licenses for operations and approvals for new games[87]. Talent Management and Employee Incentives - The company has implemented a stock incentive plan to retain key talent and enhance employee motivation[8]. - The company implemented an equity incentive plan in 2018 to enhance employee motivation and align interests[40]. - The company is implementing measures to retain core talent and enhance its management system to mitigate the risk of losing key personnel[88]. Investment and Development Projects - The company plans to allocate RMB 10,000 million for the development of a third-party payment platform, which is currently in progress[69]. - The company has completed strategic partnerships in cloud security, enhancing its product and technology capabilities in this area[34]. - The company is focusing on enhancing its game product offerings and expanding its market presence through strategic investments and acquisitions[69]. - The company has not yet achieved the expected benefits from several game development projects, including the 2.5D game "Three Kingdoms Hero" and the 3D game "Dream Garden," which have been taken offline due to market pressures[72]. Shareholder and Equity Structure - The total number of shares decreased from 263,671,800 to 263,269,300 after the cancellation of 402,500 restricted shares[126]. - The proportion of restricted shares decreased from 1.38% to 1.17% following the conversion of some restricted shares to unrestricted shares[125]. - The company has a total of 263,269,300 shares, with 98.83% being unrestricted shares and only 1.17% being restricted shares[191]. - The total number of shareholders at the end of the reporting period was 45,356, with significant changes in major shareholders' holdings[131]. - The largest shareholder, Baode Technology Group, holds 12.44% of shares, totaling 32,763,400 shares, with a decrease of 420,000 shares during the reporting period[131]. General Corporate Governance - The company did not distribute cash dividends or issue new shares during the reporting period[94]. - The company has not reported any significant litigation or arbitration matters during the reporting period[104]. - The company did not engage in any asset or equity acquisitions or sales during the reporting period[110]. - The company has not engaged in any derivative investments or entrusted loans during the reporting period[81][82].

Financial Performance - Operating revenue increased by 68.24% to ¥111,895,897.90 for the current period, and by 185.88% to ¥707,774,357.30 year-to-date[8] - Net profit attributable to shareholders was a loss of ¥7,227,441.66, a decrease of 117.23% compared to the same period last year[8] - Basic earnings per share were -¥0.03, a decrease of 118.75% compared to the same period last year[8] - The weighted average return on net assets was -0.87%, down 5.92% from the previous year[8] - Total operating revenue for Q3 2020 reached CNY 111,895,897.90, a significant increase from CNY 66,510,820.92 in the previous period[37] - The net profit for the third quarter was a loss of CNY 5,852,908.21, contrasting with a profit of CNY 41,439,225.24 in the same period last year[40] - The total comprehensive income for the third quarter was a loss of CNY 4,981,313.74, compared to a profit of CNY 39,827,852.26 in the previous year[40] - The total operating profit for the third quarter was a loss of CNY 4,424,686.34, compared to a profit of CNY 42,356,185.29 in the same period last year[40] - The company reported a total profit of CNY 6,904,920.39 for Q3 2020, compared to CNY 67,109,309.35 in the same period last year, reflecting a decrease of approximately 90%[47] Cash Flow - Net cash flow from operating activities was a negative ¥7,048,935.49, down 85.09% from the previous period[8] - The net cash flow from operating activities was -15,603,787.69 CNY, compared to 23,892,823.61 CNY in the previous year, indicating a significant decline[54] - Total cash inflow from operating activities was 796,655,882.94 CNY, while cash outflow was 812,259,670.63 CNY, resulting in a net cash outflow of 15,603,787.69 CNY[54] - The company experienced a decrease in cash flow from financing activities, with a net cash flow of -3,384,441.43 CNY compared to 50,803,850.34 CNY in the previous year[58] - The cash flow from investment activities showed a recovery, with a net inflow of 83,488,360.47 CNY compared to a net outflow of -161,962,331.01 CNY in the previous year[55] Assets and Liabilities - Total assets decreased by 19.33% to ¥1,160,265,574.07 compared to the end of the previous year[8] - Cash and cash equivalents decreased by 82.09% compared to the beginning of the year, primarily due to repayment of working capital loans and payments for equity acquisitions and project costs[20] - Total liabilities decreased to CNY 554,936,117.80 from CNY 497,144,438.39 in the previous year[35] - Total assets as of September 30, 2020, were CNY 1,482,674,061.56, an increase from CNY 1,328,432,085.24 at the end of 2019[34] - Total liabilities reached CNY 596,304,082.67, with current liabilities at CNY 551,360,474.96 and non-current liabilities at CNY 44,943,607.71[63] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,529[12] - The largest shareholder, Baode Technology Group, held 12.44% of the shares, totaling 32,763,400 shares[12] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[13] Operating Costs and Expenses - Operating costs surged by 468.73% year-on-year, reflecting the increased costs associated with the advertising agency business[20] - The total operating costs amounted to CNY 119,912,424.38, compared to CNY 67,062,984.24 in the same period last year[38] - The company incurred a tax expense of CNY 3,141,603.32 for the third quarter, compared to CNY 1,136,693.13 in the previous period[40] - The company reported a significant increase in research and development expenses, totaling CNY 5,404,240.08 for the period, compared to CNY 12,694,376.55 in the previous year[49] Government Subsidies - The company received government subsidies amounting to ¥6,632,680.54 during the year-to-date period[9] Other Financial Metrics - Other receivables rose by 60.13% year-to-date, mainly due to an increase in business loans during the reporting period[20] - Long-term prepaid expenses increased by 111.70% year-to-date, primarily due to the capitalization of custom fees for new game launches[20] - The company reported an investment income of CNY 99,975,818.74, compared to a loss of CNY 192,898.85 in the previous period[42] - The company experienced a credit impairment loss of CNY -3,063,675.09 in Q3 2020, contrasting with a gain of CNY 560,438.12 in the previous year[47]

Financial Performance - Revenue for the first half of 2020 reached RMB 500 million, representing a 15% year-over-year growth[21] - The company's operating revenue for the reporting period was ¥595,878,459.40, representing a 229.09% increase compared to ¥181,068,133.67 in the same period last year[27] - The net profit attributable to shareholders decreased by 66.81% to ¥8,861,434.79 from ¥26,699,764.55 year-on-year[27] - The net profit after deducting non-recurring gains and losses dropped by 94.00% to ¥1,128,517.97 compared to ¥18,807,745.84 in the previous year[27] - The company reported a total revenue of approximately 60.43 million, with a net profit of about 9.43 million, reflecting a strong performance in its core business of data center hosting and value-added services[88] - The company reported a total revenue of RMB 200 million for the first half of 2020, representing a year-on-year increase of 15%[101] - The company achieved operating revenue of 595.88 million yuan, a year-on-year increase of 229.09%[41] - The net profit for the first half of 2020 was CNY 7.89 million, a decrease of 69.8% from CNY 26.08 million in the same period of 2019[166] User Engagement and Market Position - The company reported a significant increase in user engagement, with a 25% rise in active users compared to the previous year[5] - User engagement metrics showed a growth of 25% in active users compared to the same period last year, reaching 1.5 million active users[102] - The company plans to invest an additional RMB 100 million in new game development to enhance user experience and market share[5] - The company has identified a 30% increase in competition within the gaming industry, prompting a strategic focus on innovation and user retention[5] - Future guidance indicates a projected revenue growth of 10% for the second half of 2020, driven by new game launches[21] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[105] Investment and Development - The company plans to relaunch two main games, "Street Football" and "Destiny Dragon Map," in the second half of 2020 after optimizing them[41] - The company has committed to investing RMB 100 million in R&D for new technologies over the next two years[102] - The company is evaluating the feasibility of acquisitions to strengthen its market position amidst rapid industry changes[9] - The company has implemented a talent retention strategy, including a stock incentive plan to enhance employee engagement and reduce turnover[8] - The company has established strategic partnerships in cloud security and has developed its own intelligent call center platform aimed at the financial services sector[35] Financial Position and Cash Flow - The total assets at the end of the reporting period were ¥1,231,620,954.05, down 14.37% from ¥1,438,349,150.43 at the end of the previous year[27] - Cash and cash equivalents decreased by 75.67% compared to the beginning of the year, primarily due to repayment of working capital loans and payment for equity acquisitions[37] - The net cash flow from operating activities was negative at -¥8,554,852.20, a decline of 112.02% from ¥71,180,095.25 in the same period last year[27] - The net cash flow from investing activities improved by 148.82% to ¥89,872,553.62 from -¥184,106,944.17, driven by the maturity of financial products and reduced long-term asset expenditures[48] - The net cash flow from financing activities was -¥184,742,476.01, a 203.94% decrease from ¥177,738,601.06, due to reduced short-term borrowing and repayment of loans[48] Challenges and Risks - The new marketing service business has negatively impacted gross margins, with costs rising by 20% due to high upfront payments[12] - The company is actively monitoring regulatory changes to mitigate potential policy risks associated with game approvals[7] - The company has faced challenges in the competitive gaming market, with several new games not generating expected revenue and ongoing internal restructuring affecting overall performance[74] - The company is facing market risks due to the rapid development of the gaming industry, which requires significant upfront investment in new game development and testing[90] - The company is also addressing industry and policy risks by ensuring compliance with regulatory requirements for mobile gaming operations in China[91] Shareholder and Equity Information - The total number of shares decreased from 263,671,800 to 263,269,300 after the cancellation of 402,500 restricted shares[129] - The largest shareholder, Baode Technology Group, holds 12.44% of the shares, totaling 32,763,400 shares, with a decrease of 420,000 shares during the reporting period[134] - The second largest shareholder, Shenzhen Baode Investment Holdings, holds 7.27% of the shares, totaling 19,141,478 shares, with a significant decrease of 53,021,784 shares[134] - The company has a total of 3,630,643 restricted shares, with 610,986 shares released from restrictions during the reporting period[133] - The company has implemented a three-year unlocking schedule for restricted shares, with 30%, 30%, and 40% released in respective years[133] Corporate Governance and Management - The company appointed a new general manager, Li Yilun, on January 8, 2020, following the departure of the previous general manager, Li Ruijie[149] - The company’s board of directors saw several changes, including the election of new independent directors on May 12, 2020[149] - The company has not reported any significant litigation or arbitration matters during the reporting period[107] - The company did not face any penalties or rectification issues during the reporting period[109]

Financial Performance - Total revenue for Q1 2020 reached ¥285,084,513.96, representing a 232.37% increase compared to ¥85,773,149.74 in the same period last year[8] - Net profit attributable to shareholders was ¥5,088,055.82, a decrease of 57.54% from ¥11,982,253.13 year-on-year[8] - Net profit after deducting non-recurring gains and losses was ¥1,396,208.99, down 76.97% from ¥6,061,930.25 in the previous year[8] - Basic earnings per share decreased by 60.00% to ¥0.02 from ¥0.05 year-on-year[8] - The company reported a net profit for Q1 2020 of CNY 4,532,902.85, a decline of 61.8% from CNY 11,855,262.20 in the same period last year[46] - Total comprehensive income for Q1 2020 was CNY 3,637,351.57, compared to CNY 11,867,873.00 in the previous period, reflecting a decrease of approximately 69.4%[47] Cash Flow - The net cash flow from operating activities was -¥12,617,906.10, a decline of 147.77% compared to ¥26,416,249.05 in the same period last year[8] - The cash inflow from operating activities amounted to ¥319,513,239.68, compared to ¥142,406,098.16 in the previous period, indicating a significant increase[53] - The net cash outflow from operating activities was ¥12,617,906.10, a decline from a net inflow of ¥26,416,249.05 in the previous period[54] - The total cash and cash equivalents at the end of the period were ¥69,614,445.99, down from ¥312,113,989.80 in the previous period[55] - The company reported a significant decrease in cash outflows related to operating activities, totaling ¥237,996,447.17, compared to ¥509,176,834.19 in the previous period[57] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,220,854,605.03, down 15.12% from ¥1,438,349,150.43 at the end of the previous year[8] - Total liabilities decreased from CNY 596,304,082.67 to CNY 373,941,925.70, a decline of about 37.4%[38] - Current liabilities decreased from CNY 551,360,474.96 to CNY 331,062,566.61, representing a reduction of approximately 40%[38] - The total current assets decreased to ¥459.07 million from ¥669.95 million, indicating a decline of approximately 31.4%[35] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 39,638[11] - The largest shareholder, Shenzhen Baode Investment Holdings, held 27.37% of the shares, totaling 72,163,262 shares[11] - Net assets attributable to shareholders increased by 0.65% to ¥839,567,186.27 from ¥834,144,421.73 at the end of the previous year[8] Investment and Development Projects - The company plans to launch new products in the second quarter, including a sports competitive game and two RPG games for the Hong Kong, Macau, and Southeast Asia markets[19] - The development project for the 3D game "Alliance" has achieved an investment progress of 112.13%, with a total investment of RMB 4,144.28 million against a commitment of RMB 5,696 million[24] - The company has invested RMB 11,500 million in the Suzhou R&D center, with a current investment of RMB 709.42 million[24] - The company has terminated the implementation of the Suzhou R&D center project, reallocating the remaining fundraising of RMB 32.2 million to supplement working capital permanently[26] Operational Challenges - The company has faced challenges with several game development projects, including the 3D game "Alliance" and the 2.5D games "Three Kingdoms Hero" and "New Song Legend," which have not met expected benefits and have been taken offline[26] - The company is currently in the investment phase for the Phoenix High-Tech Cultural Science Experience Park project, which has achieved some milestones but has not yet turned a profit[26] - The company continues to face increased customer acquisition costs in the ball game promotion project, which is still in the early stages of product layout[26] Fundraising and Financial Management - The company reported a net fundraising amount of RMB 710.755 million, with a total of RMB 349.51 million used for committed investment projects, leaving RMB 361.245 million as excess funds for operational use[26] - The company has allocated RMB 197.5 million of the excess funds to three projects, including RMB 80 million for game product promotion, RMB 17.5 million for investment in Zhuoyue Interactive, and RMB 100 million for the Zhongqing Gathering project[26] - The company has made strategic changes to its fundraising investment projects to improve investment efficiency and returns[27]

Dividend Distribution - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares to all shareholders, based on a total of 263,269,300 shares[7]. - The proposed cash dividend of RMB 0.2 per 10 shares totals RMB 5,265,386.00 for the fiscal year 2019, which represents 100% of the distributable profit[119]. - The cash dividend for 2018 was RMB 5,294,172.00, which accounted for 14.56% of the net profit attributable to shareholders[123]. - The cash dividend for 2017 was RMB 5,220,772.00, representing 10.38% of the net profit attributable to shareholders[123]. - The company has consistently maintained a cash dividend policy over the past three years, with dividends paid in cash only[123]. - The cash dividend for 2019 was the same as the previous two years, indicating a stable dividend policy[121]. - The total distributable profit for the year was RMB 178,939,268.17[119]. - The company did not propose any stock bonus or capital reserve conversion to share capital for the reporting period[119]. - The cash dividend distribution plan is in accordance with the company's articles of association and dividend management measures[119]. Financial Performance - The company's operating revenue for 2019 was ¥468,826,313.50, representing a 40.36% increase compared to ¥334,005,440.88 in 2018[18]. - The net profit attributable to shareholders for 2019 was ¥51,723,043.25, up 42.25% from ¥36,361,863.23 in 2018[18]. - The net cash flow from operating activities improved significantly to ¥3,072,912.19, a 156.20% increase from -¥5,467,977.03 in 2018[18]. - The total assets at the end of 2019 reached ¥1,438,349,150.43, marking a 17.14% increase from ¥1,227,887,863.96 at the end of 2018[18]. - The company maintained a basic earnings per share of ¥0.20, which is a 42.86% increase from ¥0.14 in 2018[18]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, which was ¥1,898,204.40, down 93.22% from ¥27,978,159.78 in 2018[18]. - The weighted average return on equity for 2019 was 6.46%, an increase of 1.72% from 4.74% in 2018[18]. - The total revenue for 2019 reached ¥468,826,313.50, representing a year-on-year increase of 40.36% compared to ¥334,005,440.88 in 2018[47]. Business Strategy and Development - The company aims to enhance management and innovation capabilities to improve user experience and increase user retention[5]. - The company is focused on developing new high-quality games to strengthen its core advantages and expand market share[5]. - The company has diversified its business model by developing both gaming and cloud service sectors, aiming for a dual-driven strategy[29]. - The company is actively expanding its cloud services, focusing on IaaS and cloud value-added services, including partnerships with major telecom operators[44]. - The company is integrating VR/AR technology with the tourism industry to develop a new type of cultural theme park[39]. - The company is focused on strategic acquisitions and asset restructuring to enhance its market position, while being aware of the associated uncertainties[6]. - The company has completed strategic partnerships in cloud security, cloud communication, and other cloud value-added services, expanding its product ecosystem[32]. - The company is currently developing a research center in Suzhou with an investment of 709.42 million[87]. Market and Competitive Risks - The company acknowledges the risks associated with the rapid development of the gaming industry and the need for substantial upfront investment in new game development[4]. - The company recognizes the competitive risks posed by both internal industry competition and external entertainment sectors[4]. - The company faces market risks due to rapidly changing player preferences and increasing competition in the gaming industry[112]. - Regulatory risks exist as the gaming industry is subject to strict government oversight, requiring licenses for mobile game operations[113]. - The company emphasizes the importance of thorough market research before launching new business ventures to minimize risks[7]. Talent and Human Resources - The company has implemented a stock incentive plan to retain and motivate high-quality talent in game development and management[6]. - The company emphasizes the importance of retaining high-quality talent to maintain its competitive edge in game development and operations[113]. - The company issued 431,700 restricted stock units to 12 employees to enhance motivation and performance[111]. - The company has achieved significant internal talent development, reducing the need for external purchases of technology systems[94]. Revenue Streams - The cloud service business generated ¥186,680,775.36, accounting for 39.82% of total revenue, with a significant year-on-year growth of 97.17% from ¥94,680,630.46[48]. - The mobile game segment saw revenue of ¥181,722,811.71, which is 38.76% of total revenue, reflecting a 96.07% increase from ¥92,681,784.77 in the previous year[48]. - The advertising service revenue surged to ¥35,116,692.06, a remarkable increase of 1,043.98% from ¥3,069,688.07[48]. - The company's total revenue from online gaming business reached ¥265,054,949.54, with a year-on-year increase of 36.32%[54]. - The gross profit margin for the online gaming business was 55.72%, which decreased by 8.40% compared to the previous year[54]. Acquisitions and Investments - The company invested 14,280 million in acquiring a 51% stake in Shanghai Meifeng Digital Technology Co., Ltd[87]. - The acquisition of a 51% stake in Shenzhen Sumo Technology Co., Ltd involved an investment of 2,186.63 million[88]. - The company reported a total of 10,000 million allocated for the development of a third-party payment platform[88]. - The company has completed the acquisition of 100% equity in Shenzhen Sumo for ¥49 million, with performance commitments for the years 2018, 2019, and 2020 set at ¥6 million, ¥9.5 million, and ¥11 million respectively[183]. Financial Management and Compliance - The company is actively monitoring the latest legal regulations to ensure compliance and reduce the risk of violations[5]. - The company has committed to not engage in high-risk investments with the remaining funds raised from the public offering within 12 months after replenishing working capital[133]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[136]. - The company has maintained transparency with the sponsor institutions regarding the use and return of raised funds[94]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 46,737, an increase from 41,550 at the end of the previous month[194]. - Shenzhen Baode Investment Holding Co., Ltd. held 27.37% of shares, totaling 72,163,262 shares, with 65,300,000 shares pledged[194]. - The largest individual shareholder, Lan Ping, held 2.00% of shares, totaling 5,270,000 shares, with an increase of 5,270,000 shares during the reporting period[194]. - The company’s total share capital is currently 263,671,800 shares, with 98.62% being unrestricted shares[190].

Financial Performance - Net profit attributable to shareholders reached ¥41,941,614.85, a significant increase of 652.16% year-on-year[8] - Operating revenue for the period was ¥66,510,820.92, reflecting a year-on-year growth of 19.98%[8] - Basic earnings per share rose to ¥0.16, marking a 700.00% increase compared to the same period last year[8] - Operating profit surged to ¥42,356,185.29 compared to ¥6,753,215.60 in the previous period, indicating a significant improvement[37] - Net profit for the current period was ¥41,439,225.24, up from ¥5,245,253.58, reflecting an increase of approximately 694.5%[37] - The profit attributable to the parent company's shareholders was ¥68,641,379.40, up from ¥33,084,919.28, indicating a strong performance[45] - Total comprehensive income of ¥39,827,852.26, compared to ¥3,315,987.51 in the previous period, indicating a strong performance[38] - The company reported a total comprehensive income of ¥65,817,953.34, compared to ¥30,980,853.33 in the previous period, reflecting improved financial health[46] Assets and Liabilities - Total assets increased to ¥1,378,328,778.14, representing a growth of 12.25% compared to the end of the previous year[8] - Current assets rose to CNY 620,894,474.01, compared to CNY 530,821,975.93, marking an increase of about 17%[27] - Total liabilities amounted to CNY 519,088,101.92, up from CNY 462,924,736.98, indicating a rise of approximately 12.1%[28] - Owner's equity reached CNY 859,240,676.22, compared to CNY 764,963,126.98, showing an increase of about 12.3%[29] - The company’s total liabilities increased to CNY 620,382,934.92 from CNY 516,023,451.30, reflecting a growth of approximately 20.2%[33] Cash Flow - Cash flow from operating activities for the year-to-date was ¥23,892,823.61, an increase of 161.99%[8] - The net cash flow from operating activities was 23,892,823.61, a significant improvement from the previous period's negative cash flow of -38,541,355.51[53] - Total cash inflow from operating activities reached 320,308,456.01, compared to 186,787,116.37 in the prior period, indicating a growth of approximately 71.5%[53] - Cash outflow from operating activities was 296,415,632.40, up from 225,328,471.88, reflecting an increase of about 31.5%[53] - The net cash flow from investing activities was -161,962,331.01, worsening from -80,293,187.85 in the previous period[54] Shareholder Information - The company reported a total of 39,636 common shareholders at the end of the reporting period[12] - The top shareholder, Shenzhen Baode Investment Holdings, held 27.62% of the shares, totaling 72,713,262 shares[12] - The company did not engage in any repurchase transactions among the top shareholders during the reporting period[13] Operational Changes - The company's operating revenue increased by 24% compared to the same period last year, primarily due to the optimization of business operations[19] - Cash and cash equivalents decreased by 32.12% from the beginning of the year, mainly due to increased external investments and prepayments[19] - Accounts receivable decreased by 21.06% from the beginning of the year, attributed to increased sales collections[19] - Prepaid expenses increased by 173.14% from the beginning of the year, mainly due to prepayments for advertising and game customization[19] - Other receivables increased by 266.62% from the beginning of the year, primarily due to an increase in receivables from equity transfers[19] Investment and Expenses - Investment income increased by 295.96% year-on-year, mainly due to the transfer of equity interests in joint ventures[19] - Research and development expenses decreased to ¥7,801,667.57 from ¥10,961,792.26, a reduction of about 28.5%[36] - Sales expenses rose to ¥13,332,745.38 from ¥8,586,620.63, an increase of approximately 55.5%[36] - The company experienced a financial expense of ¥1,832,388.51, compared to a financial income of ¥1,708,076.69 in the previous period, indicating a shift in financial performance[36] - Investment income for the current period was ¥41,809,634.60, a significant recovery from a loss of ¥272,295.48 in the previous period[36]

Financial Performance - Revenue for the first half of 2019 reached RMB 500 million, representing a 15% year-over-year growth[19] - Total revenue for the reporting period reached ¥181,068,133.67, an increase of 25.55% compared to ¥144,219,445.61 in the same period last year[25] - The company expects a revenue growth forecast of 20% for the second half of 2019, driven by new product launches[19] - The company reported a significant increase in net cash flow from operating activities, amounting to 71.18 million yuan, a 390.68% increase compared to the previous period[58] - The company reported a net profit attributable to shareholders decreased by 2.94% to ¥26,699,764.55 from ¥27,508,742.19 year-on-year[25] - The net profit after deducting non-recurring gains and losses fell by 17.04% to ¥18,807,745.84 compared to ¥22,671,028.84 in the previous year[25] - The company reported a net profit of 2,763,148.11 CNY from its subsidiary Shenzhen Suomo, contributing significantly to overall performance[96] - The net profit for the first half of 2019 was CNY 26,082,902.46, slightly down from CNY 28,362,138.00 in the first half of 2018[170] User Engagement and Market Expansion - The company reported a significant increase in user engagement, with a 25% rise in active users compared to the previous year[6] - The company aims to expand its market share by launching three new mobile games by the end of 2019[10] - The mobile game segment generated ¥91,703,426.66, accounting for 50.65% of total revenue, with a year-on-year growth of 110.14%[42] - The gaming segment continued to perform well with stable user numbers and revenue from popular titles like "抗战" and "亮剑"[32] Research and Development - The company plans to invest an additional RMB 100 million in R&D for new game development to enhance user experience and retention[10] - Research and development expenses decreased by 13.64% to 19.53 million yuan, reflecting a reduction in investment during the reporting period[58] - The company is integrating game products with cloud computing technology to enhance its industry chain layout[51] Financial Position and Assets - Total assets increased by 18.07% to ¥1,449,717,775.50 from ¥1,227,887,863.96 at the end of the previous year[25] - Net assets attributable to shareholders rose by 7.97% to ¥809,350,663.26 from ¥749,629,104.19 at the end of the previous year[25] - Cash and cash equivalents increased by 28.18% compared to the beginning of the year, primarily due to increased cash inflows from loans and sales[44] - The company's accounts receivable decreased by 24.25% compared to the beginning of the year, attributed to increased sales collections[44] Compliance and Regulatory Risks - The management emphasized the importance of compliance with regulatory requirements to mitigate policy risks associated with game approvals[7] - The company is closely monitoring industry regulations to adapt its strategies and minimize operational risks[7] Investment and Acquisitions - The company has identified potential acquisition targets in the gaming sector to strengthen its competitive position[10] - The acquisition of 51% equity in Shanghai Meifeng Digital Technology Co., Ltd. has a total investment of RMB 14,280 million, with a cumulative investment of RMB 14,280 million, achieving 100% of the planned investment[78] - The company has committed a total investment of RMB 34,951 million for various projects, with a cumulative investment of RMB 35,038.95 million, achieving a progress rate of 131.15%[80] Shareholder and Equity Information - The total number of shares after the recent changes is 264,708,600, with 4,667,443 shares (1.76%) being subject to limited sale conditions and 260,041,157 shares (98.24%) being unrestricted[138] - The largest shareholder, Shenzhen Baode Investment Holdings Co., Ltd., holds 27.47% of the shares, totaling 72,713,262 shares[142] - The company has not reported any major equity sales during the reporting period[94] Legal and Litigation Matters - The company reported a significant litigation case involving Tencent with a disputed amount of RMB 30 million, which is currently under trial and has not yet concluded[112] - The company is currently involved in multiple lawsuits, including a claim for 180.81 million CNY for unpaid electricity fees[113] - A lawsuit from Chengdu Dongyu Digital Technology Co., Ltd. seeks 253.35 million CNY for contract payments and penalties, which has been resolved[113] Future Outlook and Strategic Focus - The company is focusing on new product development and technology research to drive future growth[184] - The company has plans for market expansion and new product development, although specific figures were not disclosed in the report[190] - The overall financial performance indicates a need for strategic adjustments to improve profitability and market position[186]