Financial Performance - Total revenue for the first half of 2018 was CNY 144,219,445.61, a decrease of 13.40% compared to CNY 166,528,965.99 in the same period last year[20]. - Net profit attributable to shareholders increased by 128.47% to CNY 27,508,742.19, up from CNY 12,040,569.52 year-on-year[20]. - Net profit after deducting non-recurring gains and losses rose by 176.91% to CNY 22,671,028.84, compared to CNY 8,187,271.74 in the previous year[20]. - Basic earnings per share increased by 120.00% to CNY 0.11, up from CNY 0.05 in the same period last year[20]. - The company achieved a total revenue of ¥144.22 million in the reporting period, a decrease of 13.40% year-on-year due to business optimization and market changes[37]. - The total profit amounted to ¥25.90 million, representing a significant increase of 112.25% compared to the previous year[37]. - The net profit attributable to shareholders reached ¥27.51 million, marking a year-on-year growth of 128.47%[37]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,167,069,399.92, reflecting a 2.39% increase from CNY 1,139,853,356.27 at the end of the previous year[20]. - Net assets attributable to shareholders increased by 2.88% to CNY 773,435,935.45, compared to CNY 751,785,507.16 at the end of the previous year[20]. - The company’s total assets decreased slightly from 1,206,630,823.42 to 1,187,802,082.14, a decline of about 1.6%[145]. - Total liabilities increased slightly from 356,283,384.18 to 361,055,334.01, a rise of approximately 1.6%[141]. - The company’s total liabilities decreased to CNY 389,709,809.26 from CNY 409,058,606.51, a reduction of 4.7%[149]. - The total equity increased slightly to CNY 798,092,272.88 from CNY 797,572,216.91, indicating a growth of 0.1%[149]. Cash Flow - The net cash flow from operating activities was negative at CNY -24,487,749.20, a significant decline of 861.10% from CNY -2,547,888.83 in the same period last year[20]. - The company’s cash flow from operating activities showed improvement, contributing positively to the overall financial health[154]. - Total cash inflow from investment activities was 169,011,457.49, up from 80,827,586.10 in the previous period, primarily driven by cash recovered from investments[157]. - The net cash flow from investment activities was -14,965,441.15, a decrease from 19,444,589.25 in the previous period, reflecting increased cash outflows for investments[157]. - Cash inflow from financing activities totaled 40,000,000.00, compared to 5,600,000.00 in the previous period, indicating a successful borrowing effort[157]. - The ending cash and cash equivalents balance was 126,727,344.63, down from 181,151,410.09 in the previous period, reflecting a decrease in liquidity[157]. Business Segments and Strategy - The company has transitioned its main business focus from solely gaming to three segments: gaming, cloud services, and cultural tourism, enhancing its competitive edge[27]. - In the gaming sector, the company launched several successful mobile games, including "Martial Arts Peak" and "Glory of the Nine Regions," with plans for international expansion in Southeast Asia and Korea[27]. - The cloud services segment has seen rapid growth, with the subsidiary Baoteng Internet securing multiple government cloud data center operations projects, contributing to stable revenue streams[29]. - The company is actively developing a cultural tourism project at the Great Wall, which is expected to begin trial operations in 2019, integrating technology and cultural experiences[30]. - The company is exploring the integration of cloud services with gaming to enhance operational efficiency and reduce IT costs for clients[29]. - The company plans to strengthen its brand and technology output in the cultural tourism sector, aiming for new profit growth points[30]. Investments and Projects - The company has committed to several investment projects, including a 3D game development project with a total investment commitment of CNY 5,696 million, of which CNY 4,144.28 million has been invested, achieving 112.13% of the expected progress[57]. - The company has ongoing projects for the development of multiple games, with varying degrees of investment progress, indicating a focus on expanding its product offerings[57]. - The company has allocated RMB 30 million for the operation and R&D investment of the web game project, enhancing fundraising efficiency[65]. - The company plans to use the remaining excess funds of RMB 163.75 million for two projects, including RMB 100 million for the third-party payment platform and RMB 63.75 million for network game R&D projects[60]. Risk Management and Compliance - The company has analyzed potential risks and countermeasures in its future development in the report[5]. - The company is committed to compliance with regulatory requirements in the gaming industry to mitigate potential policy risks associated with game approvals and virtual currency operations[79]. - The company is actively monitoring industry regulations to minimize risks associated with potential non-compliance in its operations[79]. - The company has made commitments regarding tax obligations, ensuring full responsibility for any tax liabilities incurred prior to its IPO[85]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has implemented a stock incentive plan to attract and retain top management and key employees, enhancing its competitive advantage[39]. - The company has committed to avoiding any competitive business activities during the period of control by its major shareholder, ensuring no conflicts of interest[87]. - The company has pledged to strictly adhere to corporate governance and compliance with relevant laws and regulations during the tenure of its chairman[88]. Related Party Transactions - The company engaged in significant related party transactions, including a rental agreement with Shenzhen Hongde Real Estate Development for 1.4684 million yuan, representing 43.90% of similar transaction amounts[102]. - The company also reported a related party transaction with Baode Technology for a rental amount of 8.3693 million yuan, accounting for 54.98% of similar transaction amounts[102]. - The total amount of related party transactions for the 2018 fiscal year is estimated to be CNY 119.50 million, with actual transactions amounting to CNY 42.61 million as of June 30, 2018, representing approximately 35.6% of the planned amount[103]. Market and Competition - The company is facing market risks due to increasing competition and changing consumer demands, which could affect player retention and product costs[77]. - The company has experienced pressure in new game promotions due to intense market competition, affecting overall operational performance[66].

Financial Performance - Total revenue for Q1 2018 was CNY 74,512,366.20, a decrease of 10.97% compared to CNY 83,694,693.12 in the same period last year[9] - Net profit attributable to shareholders was CNY 14,360,569.52, an increase of 143.16% from CNY 5,905,689.77 in the previous year[9] - Net profit excluding non-recurring items reached CNY 12,581,786.28, up 1,021.05% from CNY 1,122,321.59 in the same period last year[9] - Basic earnings per share increased to CNY 0.06, a 200.00% rise from CNY 0.02 in the previous year[9] - The weighted average return on equity was 1.89%, up from 0.53% in the same period last year, reflecting a 1.36% increase[9] - The company reported a total revenue of 74.51 million RMB, a decrease of 10.97% year-on-year[24] - The net profit attributable to ordinary shareholders was 14.36 million RMB, an increase of 143.16% year-on-year[24] - Total operating revenue for the current period is ¥74,512,366.20, down from ¥83,694,693.12 in the previous period, representing a decrease of approximately 11.6%[48] - Operating profit increased significantly to ¥14,793,690.62 from ¥3,571,624.98, marking an increase of approximately 314%[49] - Net profit for the current period is ¥15,065,386.24, compared to ¥3,260,350.52 in the previous period, reflecting an increase of about 362%[49] - Earnings per share (EPS) for the current period is ¥0.06, up from ¥0.02 in the previous period, indicating a 200% increase[50] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,144,410,971.55, a slight increase of 0.40% from CNY 1,139,853,356.27 at the end of the previous year[9] - Net assets attributable to shareholders increased by 2.17% to CNY 768,078,732.68 from CNY 751,785,507.16 at the end of the previous year[9] - Total current assets decreased to RMB 466,785,755.00 from RMB 526,766,414.41, reflecting a reduction of about 11.4%[40] - Current liabilities decreased to CNY 313,485,277.13, down 3.5% from CNY 325,256,175.79[42] - Total liabilities decreased to CNY 343,842,957.22, a reduction of 3.5% compared to CNY 356,283,384.18[42] - Owner's equity increased to CNY 800,568,014.33, up from CNY 783,569,972.09, representing a growth of approximately 2.5%[43] Cash Flow - Cash and cash equivalents decreased to CNY 56,632,029.07 from CNY 133,567,924.13, indicating a decline of about 57.6%[44] - Cash flow from operating activities decreased to ¥50,570,037.40 from ¥65,876,762.27, a decline of approximately 23.2%[55] - The net cash flow from operating activities was -94,825,971.10 CNY, compared to -20,568,516.57 CNY in the previous period, indicating a significant decline in operational cash flow[56] - The total cash outflow from operating activities was 155,368,120.75 CNY, compared to 96,120,671.33 CNY in the previous period, highlighting increased operational expenses[56] - Cash and cash equivalents at the end of the period decreased to 74,821,337.65 CNY from 313,409,725.24 CNY, indicating a substantial reduction in liquidity[57] Investments and Projects - The company has invested RMB 10,000 million in a third-party payment platform, with no funds utilized yet[29] - The "Jubao Plan" for network game R&D has seen an investment of RMB 6,374.5 million, achieving 101.60% of the planned investment[29] - The company has committed to various game development projects, with the 3D game "Alliance" project showing a progress rate of 112.13%[28] - The company plans to use excess raised funds for operational investments in game products, with an investment of RMB 8,774.52 million, achieving 109.68% of the planned amount[28] - The company has completed the acquisition of 51% equity in Shenzhen Suomo Technology Co., Ltd. for RMB 2,186.6 million, achieving 100% of the planned investment[28] Market and Competition - The company faces market risks due to increasing competition and changing consumer demands in the gaming industry[12] - The company is focusing on enhancing management and innovation capabilities to maintain competitive advantages and expand market share[12] - The company is focusing on developing new games and expanding into mobile gaming, particularly in casual social card games[23] - The company is integrating cloud computing technology with its gaming products to enhance its market position[23] - The company is leveraging VR/AR technology in the tourism industry to create a new type of cultural theme park[23] Miscellaneous - The company has not engaged in any repurchase transactions among its top shareholders during the reporting period[19] - The company has not reported any new product launches or technological advancements during this period[49] - There are no indications of market expansion or mergers and acquisitions in the current report[49] - The company has not identified any issues with the use and disclosure of raised funds[33] - The company has established a strong internal talent pool, enhancing efficiency without the need for additional investments in certain technology systems[33]

Financial Performance - The company reported a total revenue of 261 million RMB for the year 2017, representing a year-over-year increase of 15% compared to 2016[16]. - The net profit attributable to shareholders was 45 million RMB, which is a 10% increase from the previous year[16]. - The company's total revenue for 2017 was CNY 321,348,057.16, representing a decrease of 17.09% compared to the previous year[17]. - The net profit attributable to shareholders was CNY -49,729,289.85, a significant increase of 238.30% from the previous year's net loss[17]. - The company achieved operating revenue of 313.22 million yuan, a year-on-year decrease of 17.09%[37]. - The total profit reached 54.94 million yuan, a year-on-year increase of 285.24%[37]. - The net profit attributable to shareholders was 50.30 million yuan, a year-on-year increase of 238.30%[37]. - Total revenue for 2017 was ¥313,223,143.38, a decrease of 17.09% compared to ¥377,771,011.05 in 2016[45]. - The online gaming business generated ¥215,487,498.22, accounting for 68.80% of total revenue, down 31.68% from ¥315,425,255.23 in 2016[45]. - The gross margin for the online gaming business was 58.64%, down 4.21% from the previous year[49]. User Engagement and Market Expansion - User engagement metrics showed a 20% increase in active users year-over-year, reaching 1.5 million active users by the end of 2017[16]. - The company is focusing on expanding its mobile gaming segment, which accounted for 40% of total revenue in 2017, up from 30% in 2016[16]. - The company plans to enhance its gaming products through continuous updates and new features, aiming to increase user engagement and profitability[27]. - The company has expanded its mobile gaming product line with casual social games, enhancing user engagement and diversifying revenue streams[30]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2019[105]. Strategic Initiatives and Investments - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares, totaling approximately 5.22 million RMB[5]. - New product launches are expected to contribute an additional 30 million RMB in revenue in 2018, with a focus on ARPG and MOBA genres[16]. - The company is exploring potential acquisitions to enhance its technology capabilities and market reach, particularly in the VR gaming space[16]. - The company has invested 10 million RMB in R&D for new technologies and game development in 2017, a 25% increase from the previous year[16]. - The company completed the acquisition of Shenzhen Baoteng Internet for a cash consideration of RMB 250 million, enhancing its operational capabilities[118]. - The acquisition of Shenzhen Baoteng Internet enhances the company's cloud computing capabilities, providing customized server and software solutions[87]. - The company plans to invest 200 million RMB in marketing efforts to boost brand awareness and user acquisition in new markets[103]. Risks and Challenges - The board has acknowledged potential risks in the gaming industry, including regulatory changes and market competition, and is implementing strategies to mitigate these risks[5]. - The company faces market risks, including changing consumer demands and increased competition, which could impact profitability[89]. - The company faced challenges in cloud services and technology cultural tourism due to their relatively new nature and potential management difficulties[91]. Governance and Management - The company has established a complete and sound internal governance structure, complying with relevant laws and regulations, ensuring the protection of investors' interests[181]. - The board of directors consists of 7 members, including 3 independent directors, and operates independently from the controlling shareholder[182]. - The company has independent financial management, with a separate accounting system and no shared bank accounts with the controlling shareholder[186]. - The independent directors bring significant expertise from various industries, enhancing the governance and oversight of the company[164]. - The company has a performance evaluation and incentive mechanism for senior management, ensuring transparency and compliance with legal standards[183]. Research and Development - Research and development expenses amounted to 65,000,093.13 yuan, representing 20.75% of the operating revenue, a decrease from 25.14% in the previous year[59]. - Research and development expenses increased by 30%, totaling 150 million RMB, to support innovation in gaming technology[102]. Shareholder Relations - The cash dividend for the fiscal year 2017 is set at RMB 0.20 per share, totaling RMB 5,220,772, which represents 100% of the profit distribution[96]. - The total distributable profit for the year is RMB 102,917,962.24, indicating a strong profit position[96]. - The independent directors and supervisory board have played a significant role in ensuring the profit distribution policy aligns with shareholder interests[95].

Financial Performance - Operating revenue for the reporting period was CNY 63,268,884.62, a decline of 28.42% compared to the same period last year[9] - Net profit attributable to shareholders of the listed company was CNY 6,833,699.58, an increase of 2.57% year-on-year[9] - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 5,872,781.83, down 11.55% year-on-year[9] - The company reported a net profit of CNY 6,513,936.48 for the period, reflecting a significant change in profitability[34] - The total profit for the period was CNY 21,153,484.77, compared to CNY 19,794,828.71 in the same period last year, reflecting a growth of 6.9%[44] - The net profit for the third quarter of 2017 was CNY 6,733,180.72, an increase from CNY 5,549,059.68 in the same period last year, representing a growth of approximately 21.4%[36] - The company reported a total profit of CNY 8,951,587.04 for the third quarter of 2017, compared to CNY 8,123,276.53 in the previous year, showing an increase of approximately 10.2%[36] - The operating profit for the period was CNY 15,518,957.87, an increase of 552.5% from CNY 2,810,107.94 in the previous year[44] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,085,349,078.25, a decrease of 16.27% compared to the end of the previous year[9] - The company’s total assets decreased from RMB 1,296.3 million at the beginning of the year to RMB 1,085.3 million[28] - Total liabilities increased to CNY 388,721,037.66 from CNY 130,018,443.94 at the beginning of the period[33] - The company’s non-current liabilities increased significantly to CNY 276,984,000.91 from CNY 35,710,667.46[33] - The company’s goodwill decreased by 76.31% compared to the beginning of the year, primarily due to the disposal of subsidiaries[18] Shareholder Information - Net assets attributable to shareholders of the listed company were CNY 718,863,567.90, down 35.64% year-on-year[9] - The company reported a total of 40,358 common shareholders at the end of the reporting period[13] - The largest shareholder, Shenzhen Baode Investment Holding Co., Ltd., held 27.86% of the shares, totaling 72,713,262 shares[13] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 1,267,085.40, a significant decrease of 98.36%[9] - Cash and cash equivalents increased by 29.92% compared to the beginning of the year, primarily due to the collection from the disposal of subsidiaries and sales receipts[18] - The total cash inflow from operating activities was CNY 282,799,982.75, down from CNY 303,565,363.48 in the previous year[51] - Cash outflow for operating activities was CNY 182,540,191.99, compared to CNY 134,923,118.54 in the previous period, which is an increase of 35.2%[53] - The net increase in cash and cash equivalents for the quarter was CNY 97,452,564.81, contrasting with a decrease of CNY 151,963,269.83 in the previous period[54] Revenue and Costs - Operating costs increased by 18.04% year-on-year, mainly due to higher costs associated with agency products and revenue sharing[18] - Total operating revenue for Q3 2017 was CNY 63,268,884.62, a decrease from CNY 88,386,653.98 in the previous period[35] - Total operating costs for Q3 2017 amounted to CNY 56,754,948.14, down from CNY 79,299,912.07 in the previous period[35] - The total operating revenue for the third quarter of 2017 was CNY 23,648,888.01, compared to CNY 53,330,743.10 in the previous period, indicating a significant decline[39] Investment Income - Investment income surged by 588.61% year-on-year, resulting from profits and dividends from associated companies[18] - Investment income for the third quarter was CNY 1,412,901.04, a recovery from a loss of CNY -919,963.73 in the same period last year[36] - The investment income from joint ventures and associates was a loss of CNY 236,988.53, compared to a gain of CNY 78,031.86 in the previous year[48] Expenses - The company experienced a financial expense of CNY 1,573,466.45 in the third quarter, compared to a financial income of CNY -441,285.21 in the previous period, marking a significant shift[36] - The company reported a decrease in sales expenses to CNY 9,758,016.26 from CNY 18,390,238.73, reflecting a reduction of approximately 47.3%[36] - The management expenses decreased to CNY 20,664,262.47 from CNY 29,026,973.36, indicating a reduction of about 28.8%[36]

Business Focus and Strategy - The company is focusing on three main business areas: gaming, cloud services, and technology cultural tourism, with the gaming sector being the most stable and established [5]. - The company has transitioned its main business focus from gaming to a broader entertainment platform, forming a strategic framework called "Spartan Array" with three main pillars: gaming, cloud services, and cultural tourism [31]. - The company is committed to enhancing management and innovation capabilities to maintain competitive advantages and improve user experience [7]. - The company recognizes the importance of mergers and acquisitions as a strategic plan but acknowledges the associated uncertainties and risks [10]. - The company aims to maximize shareholder value through its diversified business strategy and ongoing development in the gaming, cloud services, and cultural tourism sectors [31]. Financial Performance - Total revenue for the reporting period reached ¥166,528,965.99, an increase of 19.67% compared to the same period last year [24]. - Net profit attributable to shareholders was ¥12,040,569.52, reflecting a significant increase of 54.03% year-over-year [24]. - The net profit after deducting non-recurring gains and losses was ¥8,187,271.74, a remarkable turnaround from a loss of ¥10,552,731.28 in the previous year, representing a 219.03% improvement [24]. - The basic earnings per share increased to ¥0.05, up 66.67% from ¥0.02 in the same period last year [24]. - The company reported a total of ¥3,853,297.78 in non-recurring gains and losses for the reporting period [28]. Market Risks and Challenges - The company faces market risks, including changing player demands and increased competition, which could impact operational performance if not addressed [6]. - The cloud services and technology cultural tourism sectors are relatively new for the company, posing certain risks in terms of management difficulty and achieving expected economic benefits [12]. - The company is focusing on expanding its presence in the card game market, leveraging professional investment funds to invest in related companies [86]. - The gaming market is highly competitive, affecting the promotion of new games and resulting in several new games not yet generating benefits [74]. Acquisitions and Investments - The company completed the acquisition of Shenzhen Baoteng Internet, enhancing its cloud services and adding stable profit sources through server and data center assets [32]. - The company completed the acquisition of 71.6334% equity in Shanghai Meifeng Digital Technology Co., Ltd., with a transfer price of RMB 250 million (approximately $38.5 million) [113]. - The acquisition of Shenzhen Baoteng Internet was finalized on June 29, 2017, and is anticipated to provide new stable profit points for the company [118]. - The company aims to deepen its cloud service business through the acquisition of Baoteng Internet, which will inject server and data center business assets into the company [118]. Operational Performance - The company launched 25 new games during the reporting period, bringing the total number of operational games to 54 [46]. - The company is actively developing new games, including a military esports product called "The Last Cannon," which utilizes the advanced Unreal Engine 4 [7]. - The military esports product "Last Cannon" has shown stable user growth and revenue, with plans for future updates to enhance gameplay [32]. - The company is focusing on optimizing its business structure and enhancing market competitiveness by integrating cultural and technological resources [37]. Regulatory Compliance and Governance - The company will continue to comply with regulatory requirements to mitigate potential policy risks associated with the gaming industry [9]. - The company emphasizes thorough evaluations before mergers and acquisitions to avoid overestimating its financial capabilities [87]. - The company has not experienced any bankruptcy restructuring-related matters during the reporting period [103]. Cash Flow and Financial Management - The net cash flow from operating activities was negative at -¥2,547,888.83, a decline of 103.90% compared to the previous year [24]. - The company reported a significant increase in financing cash flow, with a net amount of ¥5,600,000.00, a 106.51% improvement due to capital contributions from shareholders of a controlling subsidiary [54]. - The company has committed to using idle raised funds temporarily to supplement working capital, with a promise not to engage in high-risk investments for twelve months after the funds are utilized [99]. Shareholder Information - The total number of shares after the recent changes is 261,038,600, with 99.71% being unrestricted shares [135]. - The largest shareholder, Shenzhen Baode Investment Holding Co., Ltd., holds 72,713,262 shares, representing 27.86% of total shares [140]. - The company’s actual controller, Mr. Li Ruijie, has committed to not transferring shares acquired during the stock increase period for six months post-completion [100]. Legal Matters - The company is currently involved in a lawsuit with Chengdu Dongyu Digital Technology Co., Ltd. for 253.35 million yuan, which is still pending [105]. - The company has a pending lawsuit against Shanghai Chuangwen Information Technology Co., Ltd. for 82.32 million yuan, which has been adjudicated but is still in the execution phase [105]. - The company has no significant litigation or arbitration matters during the reporting period [104].

Financial Performance - Total revenue for Q1 2017 was CNY 69,621,151.42, an increase of 11.59% compared to CNY 62,387,905.85 in the same period last year[8] - Net profit attributable to shareholders was CNY 3,309,938.79, a decrease of 4.34% from CNY 3,460,286.36 year-on-year[8] - Net profit excluding non-recurring gains and losses reached CNY 1,122,321.59, a significant increase of 133.92% compared to a loss of CNY 3,309,030.85 in the previous year[8] - The company achieved operating revenue of 69.62 million RMB, representing a year-on-year growth of 11.59% due to the significant benefits from new mobile games launched at the end of the previous year[27] - Net profit attributable to ordinary shareholders decreased by 4.34% year-on-year, totaling 3.31 million RMB[27] Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -21,289,086.06, worsening by 253.14% from CNY -6,028,428.71 in the same period last year[8] - Cash and cash equivalents at the end of the period totaled 124,975,226.21 CNY, compared to 281,143,122.85 CNY at the end of the previous period, indicating a significant reduction in liquidity[72] - The company reported a net cash flow from financing activities of 4,000,000.00 CNY, contrasting with -80,522,233.33 CNY in the previous period, suggesting improved financing conditions[72] - The total cash outflow from operating activities was 77,530,842.37 CNY, compared to 71,352,639.43 CNY in the previous period, indicating increased operational costs[71] Investment and Acquisitions - The company is actively pursuing mergers and acquisitions, specifically with Shenzhen Baoteng Internet, to enhance its overall internet industry chain[28] - The company has committed to avoid any non-arm's length transactions with related parties to prevent conflicts of interest during the acquisition process[37] - The acquisition process is still ongoing, with relevant approval procedures being completed as of the reporting period[31] - The company acquired 51% equity of Shanghai Meifeng Digital Technology Co., Ltd. and Shenzhen Sumo Technology Co., Ltd. using RMB 142.8 million from the originally planned projects[44] Business Strategy and Market Position - The company faces market risks including changes in market demand and increased competition, which could impact profitability[11] - The company is committed to enhancing management and innovation capabilities to maintain competitive advantages and expand market share[11] - The company is exploring new business areas, including cloud services and technology cultural tourism, which may present risks during the transition[15][16] - The company plans to leverage government support and its technical expertise to mitigate risks in new business developments[17] Financial Health and Assets - Total assets at the end of the reporting period were CNY 1,095,977,947.53, a decrease of 0.80% from CNY 1,104,819,898.46 at the end of the previous year[8] - Net assets attributable to shareholders increased by 0.69% to CNY 956,389,425.01 from CNY 949,795,089.70 at the end of the previous year[8] - Total liabilities decreased from CNY 128,618,924.64 to CNY 114,693,341.77, a reduction of about 10.81%[56] - Total equity increased from CNY 976,200,973.82 to CNY 981,284,605.76, an increase of about 0.11%[57] Operational Efficiency - Operating costs increased by 55.83% year-on-year, primarily due to higher agent product royalties and sharing costs[26] - Sales expenses decreased by 26.98% year-on-year, attributed to reduced advertising expenditures on game products[26] - The company continues to optimize and improve the stability and playability of its games post-launch, but has not yet reached the anticipated benefits[43] Fundraising and Use of Proceeds - The total amount of raised funds is CNY 71,075.5 million, with CNY 48.24 million invested in the current quarter[40] - The company reported a total fundraising amount of RMB 71,075.50 million, with RMB 34,951.00 million allocated to committed investment projects and RMB 36,124.50 million classified as excess fundraising for operational capital[42] - The company has committed to not engage in high-risk investments or provide financial assistance to others for a period of 12 months from December 1, 2016[38] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 39,459[19] - The top ten shareholders held a combined 43.52% of the company's shares, with Shenzhen Baode Investment holding the largest share at 27.28%[19]

Financial Performance - The company's operating revenue for 2016 was ¥321,348,057.16, a decrease of 6.34% compared to ¥343,090,937.31 in 2015[18]. - The net profit attributable to shareholders was -¥49,729,289.85, representing a decline of 176.27% from ¥65,202,765.48 in the previous year[18]. - The net cash flow from operating activities decreased by 46.08% to ¥92,282,870.38 from ¥171,142,603.73 in 2015[18]. - The total assets at the end of 2016 were ¥1,104,819,898.46, down 12.03% from ¥1,255,858,292.04 in 2015[18]. - The net assets attributable to shareholders decreased by 5.21% to ¥949,795,089.70 from ¥1,001,998,427.41 in 2015[18]. - The basic earnings per share for 2016 was -¥0.19, a decrease of 176.00% compared to ¥0.25 in 2015[18]. - The company reported a total profit amounted to -47.48 million yuan, reflecting a year-on-year decline of 154.25%[39]. - The company achieved a total revenue of 321.35 million yuan, a year-on-year decrease of 6.34%[39]. Cash Flow and Investments - The net cash flow from operating activities fell by 46.08% to ¥92,282,870.38[66]. - Investment cash outflow surged by 283.46% to ¥435,873,846.64, resulting in a net cash flow from investing activities of -¥172,795,816.09[66]. - Financing cash inflow dropped by 96.10% to ¥15,350,000.00, with net cash flow from financing activities improving by 53.03% to -¥90,980,783.11[66]. - The company reported an investment loss of ¥4,306,175.72, accounting for 9.07% of total profit[68]. - The total amount of raised funds used by the company is RMB 690,207,999.85, with RMB 2,274,368.91 used in 2016[75]. Business Strategy and Development - The company plans to expand its business into three main pillars: gaming, cloud services, and technology-driven cultural tourism[28]. - The company is in the process of acquiring Shenzhen Baoteng Internet Co., Ltd. to enhance its cloud services and overall industry structure[29]. - The company is undergoing a strategic transformation from a single gaming business to a diversified platform including gaming, cloud services, and cultural tourism[38]. - The company aims to strengthen its game development and research, focusing on creating high-quality games to enhance competitiveness in a highly competitive market[41]. - The company plans to continue its strategic transformation from a gaming company to a broader entertainment platform, leveraging its industry experience to enhance profitability[41]. Game Development and Performance - The company has launched several mobile games in 2016, including "Dream Traveler" and "Legend of the God of War," with new titles expected to be released in the first half of 2017[28]. - The company’s gaming business remains profitable, with a focus on developing high-quality games to meet future market demands[28]. - The main gaming products, including "War God Legend," "Adventure Record," and "The Last Cannon," performed well in both domestic and overseas markets[39]. - The company is actively developing the VR version of "The Last Cannon," integrating new technologies into its gaming products[32]. - The company added 18 new games to its platform during the reporting period, bringing the total number of operational games to 52[42]. Financial Management and Compliance - The company has implemented impairment tests on long-term assets and goodwill, reducing the proportion of goodwill to net assets below the industry average[35]. - The company is committed to improving internal control management and ensuring orderly operations to prevent similar issues from recurring in the future[42]. - The company has established a dedicated team to monitor compliance and operational risks associated with its subsidiaries, particularly in light of past issues[42]. - The company faced public condemnation from the Shenzhen Stock Exchange due to copyright transfer issues related to the game "King of Kings 3" and has implemented corrective measures to enhance compliance and governance[41]. - The company is committed to complying with regulations to mitigate industry and policy risks associated with game licensing and approvals[95]. Shareholder and Governance - The company did not distribute any cash dividends or bonus shares for the year[5]. - The company’s profit distribution plan for 2016 aligns with its articles of association and dividend management policies[103]. - The company has committed to not engaging in any competing business during the period of control by its major shareholders[108]. - The company has a clear organizational structure, with independent operational capabilities and no interference from the controlling shareholder[192]. - The company has a dedicated information disclosure system, ensuring timely and accurate communication with investors[189]. Market Trends and Risks - The global shipment of smart wearable devices grew by 38.2% in 2016, reaching 110 million units, indicating a significant market trend that the company aims to leverage[90]. - The company recognizes the investment risks related to rapid changes in the mobile gaming market and plans to conduct thorough evaluations before acquisitions[95]. - The company faces market risks due to changing player demands and increased competition, which could impact profitability and market share[94]. - The company is aware of the risks associated with new business development and will conduct comprehensive market research to ensure feasibility[96]. Human Resources and Management - The total number of employees in the company is 612, with 315 in the parent company and 297 in major subsidiaries[178]. - The company has 291 R&D personnel, 182 product operation staff, 68 marketing personnel, and 71 functional staff[178]. - The company aims to attract and retain talent through a compensation management system that combines internal equity and external competitiveness[179]. - The company emphasizes employee training, implementing customized training plans based on annual development needs[180]. - The total compensation for directors and senior management during the reporting period amounts to 2.11 million yuan[177].

Financial Performance - Total operating revenue for the period was CNY 78,073,427.10, a decline of 34.97% year-over-year[7] - Net profit attributable to shareholders increased by 77.11% to CNY 4,271,895.44 for the quarter[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 4,252,001.18, a significant increase of 309.79% year-over-year[7] - Basic earnings per share remained at CNY 0.02, unchanged from the previous quarter, but down 50% year-over-year[7] - The weighted average return on net assets was 0.43%, an increase from 0.17% in the previous quarter[7] - The company reported a revenue of RMB 196.87 million for the third quarter, a year-on-year decrease of 28.29%[21] - The total profit amounted to RMB 12.35 million, showing a significant year-on-year increase of 258.94%[21] - The net profit attributable to shareholders was RMB 8.42 million, reflecting a year-on-year decline of 46.27%[21] - Total operating revenue for Q3 2016 was CNY 78,073,427.10, a decrease of 34.9% compared to CNY 120,066,698.52 in the same period last year[49] - Net profit for Q3 2016 was CNY 3,158,760.26, compared to a net loss of CNY 1,104,795.51 in Q3 2015[50] - The net profit attributable to shareholders of the parent company was CNY 4,271,895.44, an increase from CNY 2,412,067.22 in the previous year[50] - The total comprehensive income for the quarter was CNY 19,652,025.98, compared to a loss of CNY 10,677,940.59 in the same quarter last year[55] Assets and Liabilities - Total assets decreased by 7.16% to CNY 1,165,922,687.28 compared to the end of the previous year[7] - Cash and cash equivalents decreased by 61.96% compared to the beginning of the year, primarily due to the recovery of prepaid equity payments and increased external investments[18] - Short-term borrowings decreased by 100% compared to the beginning of the year, as the company repaid its working capital loans[18] - Long-term equity investments increased by 64.29% compared to the beginning of the year, attributed to increased external investments[18] - Other current assets increased by 1204.50% compared to the beginning of the year, mainly due to the purchase of financial products[18] - The total current assets decreased from 567,001,727.32 yuan at the beginning of the period to 326,007,701.70 yuan at the end of the period, a decline of approximately 42.5%[41] - The company's total assets decreased from 1,255,858,292.04 yuan to 1,165,922,687.28 yuan, a decline of approximately 7.2%[44] - The total liabilities decreased from 221,226,559.87 yuan to 122,242,643.10 yuan, a reduction of about 44.7%[43] Cash Flow - The company reported a net cash flow from operating activities of CNY 32,659,437.77, a slight decrease of 0.90% year-to-date[7] - Operating cash flow for the period was ¥32,659,437.77, slightly down from ¥32,956,342.70 in the previous year[65] - Total cash inflow from operating activities was ¥234,832,860.97, compared to ¥229,310,053.19 in the prior year[65] - Cash outflow from operating activities totaled ¥202,173,423.20, an increase from ¥196,353,710.49 year-over-year[65] - The ending cash and cash equivalents balance was ¥110,757,598.13, down from ¥119,292,358.79 at the end of the previous year[66] Strategic Planning and Risks - The company faces significant market competition risks due to the rapid development of the internet industry and changing player demands[10] - New business development poses risks as the company needs to innovate its business model to adapt to market changes[11] - The company is considering acquisitions and asset restructuring as part of its strategic planning, which carries inherent risks[11] - The company has adjusted its major asset restructuring plan, which no longer constitutes a significant asset restructuring as per regulations[19] Fundraising and Investments - The total amount of raised funds for the quarter was RMB 71,075.5 million, with a cumulative investment of RMB 71,696.16 million[27] - The cumulative proportion of changed-use raised funds reached 45.99%[27] - The company plans to permanently supplement working capital with the remaining funds from terminated projects[28] - The total amount of over-raised funds allocated was RMB 36,124.5 million, with a cumulative investment of RMB 39,329 million[28] - The company has utilized RMB 36.1245 million of the excess fundraising for operational capital related to its main business[30] Compliance and Governance - The company strictly fulfilled its commitment not to provide financial assistance to stock option incentive objects[24] - The company committed to bear any penalties or losses related to tax payments prior to its initial public offering[24] - The company will not engage in any competing business during its control period[24] - The company will avoid any non-routine related transactions with its controlling shareholders in the future[25] - The company has implemented strict measures to avoid conflicts of interest in its operations[25] - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[36] - There were no violations regarding external guarantees during the reporting period[35] Project Development - The 3D game project "Alliance" was delayed, with a new launch date of July 24, 2014, after extending the development cycle to enhance user experience[29] - The project "2.5D Game 'Three Kingdoms Hero'" achieved an investment progress of 86.13% as of June 30, 2014[27] - The company has not achieved the expected benefits from several game development projects, including the 2.5D games "Three Kingdoms Hero" and "New Song Legend" due to stability and playability issues[30] - The company has recorded impairment provisions for the "Dream Garden" project, indicating it has not met expected performance[30] - The company has not developed the land acquired for the Suzhou R&D center due to significant market changes, and the land has been notified for recovery by the local authority[30]

Financial Performance - Total revenue for the first half of 2016 was ¥118,793,101.44, a decrease of 23.10% compared to ¥154,483,509.73 in the same period last year[18]. - Net profit attributable to ordinary shareholders was ¥4,144,569.48, down 68.72% from ¥13,251,822.42 year-on-year[18]. - Basic earnings per share decreased by 60.00% to ¥0.02 from ¥0.05 in the same period last year[18]. - The total profit for the company was 6.62 million yuan, down 9.59% year-on-year[31]. - The net profit attributable to shareholders was 4.14 million yuan, reflecting a significant decline of 68.72% year-on-year[31]. - The net profit after deducting non-recurring gains and losses was -¥10,552,731.28, a decrease of 212.12% compared to ¥9,412,148.48 in the same period last year[18]. - The company reported a comprehensive income total of CNY 4,052,402.91, a decrease of 66.2% from CNY 11,988,284.78 year-on-year[135]. - The operating profit for the first half of 2016 was a loss of CNY 10,412,539.61, compared to a profit of CNY 2,371,683.50 in the same period of 2015[134]. Cash Flow and Investments - Net cash flow from operating activities reached ¥21,590,800.82, a significant increase of 4,133.60% compared to -¥535,273.28 in the previous year[18]. - Investment cash flow from investing activities showed a net inflow of ¥34.58 million, a 159.37% increase, due to the recovery of equity investment funds[39]. - Operating cash inflow for the period was CNY 162,689,601.15, an increase of 24.6% from CNY 130,522,863.79 in the previous period[138]. - Net cash flow from investment activities was CNY 34,575,361.01, recovering from a negative CNY 58,236,062.64 in the previous period[141]. - The company reported a net decrease in cash and cash equivalents of CNY 29,361,334.20 for the period[141]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,155,206,002.29, down 8.01% from ¥1,255,858,292.04 at the end of the previous year[18]. - The company's total liabilities decreased from CNY 221,226,559.87 to CNY 121,742,639.21, a decline of about 45%[126]. - The total liabilities at the end of the period were reported at 33,338,000,000 CNY, reflecting a decrease from 34,633,000,000 CNY in the previous period, a decline of approximately 3.7%[148]. - The total equity increased to CNY 1,240,092,287.48 from CNY 1,222,661,058.83, reflecting a growth of 1.4% year-on-year[134]. Business Strategy and Development - The company launched several mobile games, including "Dream Traveler" and "Xian Zhan 2," and is preparing to release "Chun Qiu Zhan Xiong" and "Wu Hu Zhan Jiang" soon[32]. - The company is focusing on enhancing its esports game "Last Cannon" and has initiated marketing campaigns to improve user engagement and revenue[33]. - The company is expanding into new business areas, including cultural creativity and technology applications, to diversify its revenue streams[34]. - The company plans to continue optimizing its main business and strengthen its core competitiveness in the second half of the year[34]. - The company plans to launch multiple self-developed products in the second half of 2016, indicating a focus on new product development[43]. Risk Management - The company faces risks related to market demand changes, competition, and regulatory adjustments that could impact its operations[24]. - The company recognizes market risks including policy changes, market demand fluctuations, and increased competition, which could adversely affect operations[46]. - To mitigate risks, the company aims to enhance management and innovation capabilities, develop differentiated products, and improve user experience[47]. Fundraising and Financial Management - The total amount of raised funds is RMB 71,075.5 million, with a cumulative investment of RMB 71,637.49 million as of the reporting period[52]. - The company has changed the use of raised funds cumulatively amounting to RMB 32,686.63 million, representing 45.99% of the total raised funds[52]. - The company has committed to not using the raised funds for high-risk investments such as securities investments or providing financial assistance to others within 12 months[96]. - The company has not encountered any issues in the use and disclosure of fundraising funds[61]. Shareholder and Corporate Governance - The company’s actual controller, Li Ruijie, has committed to not transferring the shares acquired during the increase in holdings for six months after completion[98]. - The company will ensure that its subsidiaries will not engage in any competing business with its current operations[94]. - The company has promised to avoid any non-regular related transactions with its actual controller and related parties[96]. - The company’s management team has not changed during the reporting period[119]. Market and Competitive Landscape - The company emphasizes the importance of attracting and retaining skilled technical personnel to maintain its competitive edge[28]. - The company is also exploring acquisition and restructuring strategies to adapt to the rapidly evolving mobile gaming market[48]. - The company aims to improve its operational efficiency and profitability through strategic initiatives and potential mergers and acquisitions in the future[158].

Financial Performance - Total revenue for Q1 2016 was ¥62,387,905.85, a decrease of 6.10% compared to ¥66,440,762.85 in the same period last year[8] - Net profit attributable to shareholders was ¥3,460,286.36, down 42.82% from ¥6,051,428.86 year-on-year[8] - Net profit after deducting non-recurring gains and losses was -¥3,309,030.85, a decline of 180.71% compared to ¥4,099,821.34 in the previous year[8] - Basic earnings per share decreased by 50.00% to ¥0.01 from ¥0.02 year-on-year[8] - The total profit reached 5.87 million RMB, showing a significant increase of 70.96% compared to the previous year[24] - The net profit attributable to shareholders was 3.46 million RMB, reflecting a decline of 42.82% year-on-year[24] - The company reported a revenue of 62.39 million RMB for the first quarter, a decrease of 6.10% year-on-year[24] - The company reported an operating loss of CNY 2,084,784.48 for Q1 2016, compared to an operating profit of CNY 1,266,137.48 in the previous period[60] - The company recorded a significant asset impairment loss of CNY 5,047,259.34 in Q1 2016[60] - The net profit for Q1 2016 was CNY 16,149,926.36, a significant improvement compared to a net loss of CNY 11,663,148.93 in the same period last year[64] - Operating profit for the quarter was CNY 10,086,589.68, contrasting with an operating loss of CNY 14,586,151.77 in Q1 2015[64] Cash Flow and Assets - The net cash flow from operating activities improved to -¥6,028,428.71, a 54.60% increase from -¥13,277,991.34 in the same period last year[8] - Cash and cash equivalents decreased by 3.43% from the beginning of the year, primarily due to the recovery of prepaid equity funds and repayment of working capital loans[23] - Accounts receivable increased by 7.18% from the beginning of the year, attributed to slower sales collections[23] - The company's cash and cash equivalents at the end of the period were 281,143,122.85 yuan, compared to 291,139,329.09 yuan at the beginning, indicating a decrease of approximately 3.3%[51] - Total cash inflow from investment activities was CNY 93,924,400.00, compared to CNY 9,953,560.51 in the same period last year, resulting in a net cash inflow of CNY 76,483,116.16[68] - The company incurred a total of CNY 71,352,639.43 in cash outflows from operating activities, down from CNY 92,394,664.71 in the same period last year[68] - The cash flow from financing activities resulted in a net outflow of CNY 80,522,233.33, compared to a net inflow of CNY 24,179,690.38 in the previous year[69] - The cash and cash equivalents at the end of the period amounted to 206,297,636.04 CNY, an increase from the beginning balance of 200,326,259.45 CNY[72] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,166,925,326.99, down 7.08% from ¥1,255,858,292.04 at the end of the previous year[8] - Total liabilities decreased from 221,226,559.87 yuan to 128,974,105.50 yuan, a decline of about 41.6%[53] - The total assets decreased from 1,255,858,292.04 yuan to 1,166,925,326.99 yuan, a reduction of approximately 7.1%[54] - The company's non-current assets increased slightly from 688,856,564.72 yuan to 692,297,790.15 yuan, an increase of about 0.6%[52] - The company's equity increased to CNY 1,238,810,985.19 from CNY 1,222,661,058.83[57] Shareholder and Governance Commitments - The company has committed to strictly adhere to its stock incentive plan, ensuring no financial assistance is provided to incentive participants[29] - The company has made tax commitments, stating that any penalties from tax authorities due to pre-IPO tax matters will be borne by the company[30] - The company has guaranteed to cover any social insurance costs that may arise from prior periods, ensuring full liability[30] - The company has pledged to avoid any competition with its existing business during the period of being a controlling shareholder[31] - The chairman has committed to fulfilling his duties objectively and independently, ensuring sufficient time and effort to protect the interests of the company and its shareholders[32] - The company will not engage in any activities that may harm the legal rights of shareholders, including the misuse of funds or resources[32] - The company has emphasized its commitment to compliance with relevant laws and regulations regarding corporate governance and shareholder interests[32] - The company has undertaken to avoid any conflicts of interest that may arise from its controlling position[32] - The company has committed to maintaining transparency and accountability in its operations and financial reporting[32] Fundraising and Investment Projects - The company used part of the idle raised funds amounting to 30 million yuan to temporarily supplement working capital[34] - A total of 60 million yuan of idle raised funds was used for the same purpose[34] - The company committed not to use the raised funds for high-risk investments or financial assistance to others within 12 months after the temporary use[36] - The company plans to terminate the implementation of certain fundraising projects and permanently supplement working capital with the remaining raised funds[35] - The company’s actual controller committed not to transfer the shares acquired during the increase for six months after the completion of the increase[36] - The company’s fundraising projects are expected to proceed normally under the premise of ensuring the funding needs[36] - The company’s total shareholding increase is not to exceed 2% of the total share capital[35] - The company’s board of directors approved the use of idle funds in a meeting held on January 8, 2016[36] - The company has fulfilled its commitments regarding the use of raised funds as of the reporting date[37] - The company’s fundraising usage plan was approved in the third board meeting held on May 13, 2015[35] - The total amount of raised funds in this quarter is RMB 71,075.5 million, with an investment of RMB 67.1 million[39] - The cumulative amount of raised funds invested is RMB 71,576.62 million, with a cumulative change in purpose amounting to RMB 32,686.63 million, representing 45.99%[39] - The company has allocated RMB 36,124.5 million for the use of over-raised funds, achieving a total investment of RMB 39,210.38 million[40] Project Development and Challenges - The company is actively promoting high-quality projects like "The Last Cannon," which have exceeded expectations[24] - The development project for the 3D game "Alliance" has a total investment of RMB 5,696 million, with RMB 3,696 million invested this period, achieving a progress rate of 112.13%[39] - The 2.5D game "Hero" project has a total investment of RMB 5,270 million, with RMB 3,083.37 million invested this period, achieving a progress rate of 86.13%[39] - The 3D game "New Romance of the Three Kingdoms" project has a total investment of RMB 5,246 million, with RMB 3,246 million invested this period, achieving a progress rate of 55.85%[39] - The company has invested RMB 11,500 million in the Suzhou R&D center project, with no funds utilized yet[39] - The company terminated the Suzhou R&D center project and repurposed remaining funds for liquidity[42] - The company sold 100% equity of Shenzhen Zhongfutong for RMB 100 million due to the failure to obtain a payment license[42] - The company has not yet completed land compensation procedures with the Suzhou Industrial Park Land and Resources Bureau as of March 31, 2016[42] - The company invested in multiple game projects under the "Zhongqing Jubao" project, which have not yet achieved economic effects[42] - The 3D game project "Dream Garden" did not meet expected benefits due to reduced overseas revenue and domestic industry transformation[42] - The 2.5D game projects "Three Kingdoms Hero" and "New Song Legend" faced issues during testing, leading to further optimizations, and have not yet achieved expected benefits[42]