北京掌趣科技股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连 带的法律责任。 北京掌趣科技股份有限公司 2018 年第三季度报告全文 北京掌趣科技股份有限公司 2018 年第三季度报告 2018 年 10 月 1 非经常性损益项目和金额 单位：元 所有董事均已出席了审议本次季报的董事会会议。 公司负责人刘惠城、主管会计工作负责人黄迎春及会计机构负责人(会计主 管人员)黄迎春声明：保证季度报告中财务报表的真实、准确、完整。 2 北京掌趣科技股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 9,671,347,544.46 | 9,884,033,738.80 | | -2.15% | | 归属于上市公司股东的 ...

Financial Performance - Total revenue for the reporting period reached ¥1,144,435,819.27, an increase of 38.39% compared to the same period last year[27]. - Net profit attributable to shareholders was ¥380,352,328.41, reflecting a growth of 42.39% year-over-year[27]. - Net profit after deducting non-recurring gains and losses was ¥374,980,723.72, marking a significant increase of 66.80% compared to the previous year[27]. - Net cash flow from operating activities was ¥515,917,827.69, up 106.57% from the same period last year[27]. - Basic earnings per share increased to ¥0.14, a rise of 40.00% year-over-year[27]. - The total comprehensive income for the period was CNY 393,412,701.55, compared to CNY 237,618,378.72 in the previous year, marking a growth of approximately 65.5%[155]. - The company reported a net profit of RMB 206.35 million from Beijing Tianma Shikong Network Technology Co., Ltd., which significantly contributes to its overall profitability[71]. - The company reported a significant increase in prepayments to CNY 156,647,009.96 from CNY 161,379,675.00, indicating a focus on future growth initiatives[149]. Strategic Focus and Development - The gaming industry is facing intensified competition, with the company emphasizing the need to enhance its R&D capabilities and acquire quality IP to maintain its competitive edge[9]. - The company is aware of the risks associated with new game development and operations, focusing on optimizing structure and improving R&D efficiency to mitigate these risks[10]. - The company has established a talent management system to attract, retain, and incentivize employees, enhancing its core competitiveness[12]. - The company has established a strategic direction focused on product-centric development and enhancing the efficiency of its existing distribution system[43]. - The company is actively restructuring its organization into three main business lines: R&D, operations, and platform, to improve resource coordination and operational efficiency[44]. - The company plans to focus on refined operations of high-quality products and expand its product matrix to enhance competitiveness[45]. - The company is committed to closely monitoring regulatory changes in the gaming industry to ensure compliance and adapt its business operations accordingly[8]. Acquisitions and Investments - The company has expanded its scale through mergers and acquisitions, which has increased management risks and requires optimization of its management team[13]. - The company has a strong focus on integrating acquired companies to leverage synergies and maintain competitive advantages[13]. - The company has acquired rights to several high-quality IPs, including "初音未来" and "ONE PUNCH MAN", enhancing its IP portfolio for future game development[47]. - The company has invested RMB 400 million in Tianjin Fanyou Technology Co., Ltd. as part of its strategic investment in Webzen Inc.[68]. - The company plans to use the remaining fundraising of RMB 130 million for strategic investments, with a total of RMB 1.2 billion allocated for this purpose[68]. Shareholder and Capital Structure - The company reported no cash dividends, stock bonuses, or capital reserve transfers to increase share capital for the period[6]. - The company will not distribute cash dividends or issue bonus shares, indicating a focus on reinvestment[6]. - The company has launched its first employee stock ownership plan to align the interests of core employees with shareholders, promoting sustainable development[48]. - The company completed a share transfer where the original controlling shareholder, Mr. Yao Wenbin, transferred 140,075,010 shares (5.08% of total shares) to Chairman Liu Huicheng[94]. - The total number of shares after the transfer is 2,757,992,863, with 182,056,822 shares (6.60%) under limited sale conditions and 2,575,936,041 shares (93.40%) freely tradable[98]. - The company has undergone significant changes in its shareholder structure, becoming a listed company without a controlling shareholder[94]. Legal and Compliance - The company is involved in multiple legal disputes, with total claimed amounts reaching approximately ¥5,112.25 million across various cases[82]. - The company has not faced any significant risks that could adversely affect its future development strategy[72]. - The company did not experience any major litigation or arbitration matters during the reporting period[81]. - The financial report for the half-year period has not been audited[79]. - The company has not encountered any defaults on its bonds, maintaining a stable financial position[117]. Financial Position and Ratios - The total assets of the company reached approximately ¥10.27 billion, an increase from ¥9.88 billion at the end of the previous year[145]. - The company's current ratio increased to 4.16, up 3.74% from the previous year's 4.01[136]. - The EBITDA interest coverage ratio rose significantly by 57.47% to 21.40 compared to 13.59 in the same period last year[136]. - The total liabilities rose to CNY 1,419,362,886.21, an increase of 27.3% from CNY 1,114,999,513.72 at the start of the year[151]. - The company's cash and cash equivalents increased significantly to CNY 579,110,905.51 from CNY 184,927,934.38, marking a growth of 213.5%[149]. Research and Development - Research and development expenses increased to ¥218,068,979.88, a 13.56% rise from the previous year, indicating a commitment to innovation[55]. - The company emphasizes the importance of continuous innovation in game development to avoid revenue declines from older games[10]. - The company aims to respond quickly to market changes and enhance its R&D capabilities to meet evolving player preferences[9].

Financial Performance - Total revenue for Q1 2018 was CNY 482,786,601.50, representing a 5.75% increase compared to CNY 456,536,042.84 in the same period last year[8]. - Net profit attributable to shareholders decreased by 18.71% to CNY 131,572,064.59 from CNY 161,848,098.45 year-on-year[8]. - Net profit after deducting non-recurring gains and losses fell by 19.25% to CNY 128,805,357.07 compared to CNY 159,514,019.96 in the previous year[8]. - Basic earnings per share decreased by 16.67% to CNY 0.05 from CNY 0.06 year-on-year[8]. - The company achieved operating revenue of 482.79 million yuan, a year-on-year increase of 5.75%[22]. - The net profit attributable to the parent company was 131.57 million yuan, a year-on-year decrease of 18.71%[22]. - The company reported a total operating costs of approximately ¥226.58 million for Q1 2018, compared to ¥110.02 million in the same period last year[50]. - The total comprehensive income attributable to the parent company was approximately ¥65.44 million, down from ¥152.66 million in the previous year[48]. Cash Flow and Liquidity - Net cash flow from operating activities decreased significantly by 67.38% to CNY 54,942,039.69 from CNY 168,413,612.72 in the same period last year[8]. - The net cash flow from operating activities was approximately ¥54.94 million, a decrease from ¥168.41 million in Q1 2017[56]. - The company reported a cash outflow from investing activities of approximately ¥50.99 million in Q1 2018, compared to ¥186.87 million in the same period last year[56]. - The net increase in cash and cash equivalents for the quarter was ¥55,042,741.27, contrasting with a decrease of ¥57,369,396.05 in the same quarter last year, reflecting improved liquidity[60]. - The ending balance of cash and cash equivalents stood at ¥239,970,675.65, down from ¥257,905,697.35 at the end of the previous year, indicating a slight reduction in cash reserves[60]. - The company received ¥38,821,817.92 in cash related to operating activities, a substantial increase from ¥26,250,445.19 in the previous year, showcasing growth in operational cash inflows[59]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 9,807,103,689.14, a decrease of 0.78% from CNY 9,884,033,738.80 at the end of the previous year[8]. - The total liabilities decreased to CNY 1,129,014,895.01 from CNY 1,283,352,580.66, showing a reduction of approximately 12%[40]. - The total assets as of March 31, 2018, amounted to CNY 9,807,103,689.14, a decrease from CNY 9,884,033,738.80 at the beginning of the period[38]. - The total liabilities as of the end of Q1 2018 were CNY 1,241,954,410.24, compared to CNY 1,114,999,513.72 at the beginning of the period, reflecting an increase of approximately 11.4%[44]. Shareholder Information - The company reported a total of 332,582,912 shares held by its largest shareholder, Yao Wenbin, representing a significant ownership stake[15]. - The top 10 unrestricted shareholders collectively hold 88,532,832 shares, with the second-largest shareholder being Ye Yingtao[15]. - The company has a significant number of shares under lock-up agreements for executives, totaling 41,795,407 shares for Deng Pan[18]. - The company has issued shares as part of its acquisition strategy, which includes performance commitments for the release of restricted shares[19]. - The report indicates that there are no known relationships or concerted actions among the top shareholders[15]. Investment and Development - The company has made significant investments in mergers and acquisitions to enhance its competitive edge, but faces risks related to integration and goodwill impairment[12]. - The company is involved in mergers and acquisitions, including the acquisition of 100% of Wanxie Technology and 70% of Shangyou Information, which has implications for share restrictions[19]. - Research and development costs increased significantly due to the company's product development-oriented strategy, leading to a 40% rise in management expenses compared to the same period last year[22]. - The company has not disclosed any new product or technology developments in this report[21]. - There were no significant changes in the feasibility of investment projects during the reporting period[30]. Risks and Challenges - The company faces risks including intensified market competition and the need for continuous innovation in game development[9][10]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[34]. - The company has no non-compliance issues regarding external guarantees during the reporting period[33].

Financial Performance - The company's operating revenue for 2017 was approximately ¥1.77 billion, a decrease of 4.66% compared to ¥1.85 billion in 2016[17]. - The net profit attributable to shareholders was approximately ¥263.89 million, down 48.11% from ¥508.59 million in the previous year[17]. - The net profit after deducting non-recurring gains and losses was approximately ¥40.75 million, a significant decline of 90.50% compared to ¥428.78 million in 2016[17]. - The net cash flow from operating activities was approximately ¥669.42 million, a decrease of 23.57% from ¥875.91 million in 2016[17]. - The total assets at the end of 2017 were approximately ¥9.88 billion, down 4.97% from ¥10.40 billion at the end of 2016[17]. - The net assets attributable to shareholders increased by 1.43% to approximately ¥8.53 billion from ¥8.41 billion in 2016[17]. - The basic earnings per share decreased by 44.44% to ¥0.10 from ¥0.18 in the previous year[17]. - The weighted average return on net assets was 3.12%, down from 6.35% in 2016, reflecting a decline of 3.23%[17]. - The company achieved total revenue of CNY 1,768.21 million in 2017, a decrease of 4.66% compared to the previous year[34]. - Net profit attributable to shareholders was CNY 263.89 million, down 48.11% year-on-year, primarily due to increased R&D costs and delays in the launch of key self-developed games[34]. Cash Flow and Investments - Operating cash flow for Q4 was CNY 264.58 million, showing strong cash generation capabilities[19]. - The company reported a net profit of CNY -130.38 million in Q4, indicating challenges in profitability during that period[19]. - Non-recurring gains and losses totaled CNY 223.15 million in 2017, significantly impacting net profit figures[22]. - Investment cash inflow surged by 325.58% to ¥317,012,130.66, while cash outflow decreased by 78.83%[54]. - The net cash flow from investment activities improved by 92.12%, reaching -¥178,630,901.44[54]. - The net increase in cash and cash equivalents was ¥22,647,376.61, a significant decline of 97.44%[54]. Market and Product Development - The company has established a diversified product matrix, focusing on high-quality game content and services, with a strategic emphasis on internationalization and collaboration with major IPs[25]. - The game "The King of Fighters 98 Ultimate Match OL" generated cumulative revenue exceeding CNY 4.8 billion since its launch, while "All-Miracle" reached over CNY 7.7 billion globally[34]. - The company launched multiple self-developed and agency products in 2017, including "Street Basketball" and "Magic Door: Heroes of War," which received positive market feedback[34]. - Revenue from mobile games accounted for 89.71% of total revenue, amounting to approximately ¥1.59 billion, showing a slight increase of 0.51% year-over-year[40]. - The company has established a strategic partnership with Tencent, enhancing its competitive edge in distribution and operations[35]. Research and Development - R&D investment amounted to ¥451,024,060.37 in 2017, representing 25.51% of operating revenue[52]. - The number of R&D personnel decreased to 1,011 in 2017, accounting for 60.61% of total staff[52]. - The company aims to enhance its R&D capabilities to produce high-quality games with long lifecycles and innovative gameplay[73]. - The company is investing 200 million yuan in R&D for new technologies and game development in the upcoming year[156]. Shareholder and Governance - The total cash dividend for 2017 was 27,579,928.63 CNY, representing 10.45% of the net profit attributable to shareholders[83]. - The company plans to distribute a cash dividend of 0.10 CNY per 10 shares for 2017, based on a total share capital of 2,757,992,863 shares[81]. - The company has a policy to distribute at least 10% of the annual distributable profit as cash dividends[77]. - The company has established a framework for information disclosure obligations in accordance with relevant laws and regulations[85]. - The company has committed to reducing related party transactions and ensuring they are conducted at fair market prices[85]. Strategic Outlook - The company plans to release multiple products in 2018, including "Miracle MU: Awakening" and "The Great Master 2" among others[73]. - The company aims to enhance its IP resources and expand its entertainment ecosystem in the future[74]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[150]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 500 million yuan allocated for potential deals[156]. Internal Control and Compliance - No significant internal control deficiencies were identified during the reporting period, with a total asset coverage of 100% in the internal control evaluation[179][180]. - The audit committee played a crucial role in enhancing the internal control system and communicated effectively with external auditors[176]. - The company has established measures to ensure that any necessary related-party transactions are conducted fairly and transparently[91]. - The company has committed to strict information disclosure principles to ensure transparency regarding its debt repayment capabilities and the use of raised funds[198]. Management and Leadership - The company has maintained a stable management structure with no significant changes in executive positions during the reporting period[141]. - The board of directors includes experienced professionals from various sectors, enhancing corporate governance and strategic decision-making[149]. - The company is focusing on expanding its market presence and enhancing its product offerings through strategic management changes and new leadership[145]. - The company has seen a notable decrease in the number of shares held by executives, with a total of 47,789,990 shares reduced during the reporting period[143].

Financial Performance - Operating revenue for the reporting period was CNY 452,070,482.40, an increase of 12.63% year-on-year[7] - Net profit attributable to shareholders was CNY 127,154,137.05, a decrease of 9.90% compared to the same period last year[7] - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 91,958,828.09, down 32.68% year-on-year[7] - Basic earnings per share for the reporting period was CNY 0.05, unchanged from the previous year[7] - The weighted average return on net assets was 1.47%, a decrease of 0.22% compared to the previous year[7] - Total operating revenue for Q3 2017 was CNY 452,070,482.40, an increase from CNY 401,369,631.03 in the previous period[34] - Net profit for Q3 2017 was CNY 133,669,613.53, compared to CNY 154,350,513.37 in the same period last year, reflecting a decrease of approximately 13.5%[35] - The net profit attributable to shareholders of the parent company was CNY 127,154,137.05, down from CNY 141,127,892.94 year-over-year[35] - Total operating revenue for the current period was CNY 1,279,032,900.63, a decrease of 5.6% compared to CNY 1,355,779,792.76 in the previous period[40] - Net profit for the current period reached CNY 447,850,038.01, significantly higher than CNY 3,309,529.80 in the previous period[40] Assets and Liabilities - Total assets at the end of the reporting period were CNY 10,114,072,344.02, a decrease of 2.76% compared to the end of the previous year[7] - Total current assets decreased from CNY 1,894,446,741.03 to CNY 1,743,901,160.21[26] - Total non-current assets decreased from CNY 8,506,969,601.67 to CNY 8,370,171,183.81[27] - Total liabilities decreased from CNY 1,923,196,709.93 to CNY 1,372,262,815.96[28] - Total equity attributable to shareholders of the parent company increased from CNY 8,411,956,258.86 to CNY 8,681,496,323.16[29] - Total assets increased to CNY 10,020,005,639.22 from CNY 9,896,977,376.71 in the previous period[32] - Total liabilities decreased to CNY 1,287,812,146.00 from CNY 1,714,241,278.05 year-over-year[32] - The company's total equity rose to CNY 8,732,193,493.22, compared to CNY 8,182,736,098.66 in the previous period[32] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 404,847,302.95, down 42.04% year-on-year[7] - Net cash flow from operating activities decreased by 42.04% year-on-year, mainly due to a decrease in operating income and increased R&D investment and IP reserves[22] - Net cash flow from investing activities increased by 90.12% year-on-year, primarily due to a reduction in equity investment payments[22] - Net cash flow from financing activities decreased by 115.45% year-on-year, mainly due to the previous period's non-public offering of shares and issuance of corporate bonds[22] - The net increase in cash and cash equivalents decreased by 138.00% year-on-year, primarily due to the impact of financing activities[22] - Cash flow from operating activities for Q3 2017 was approximately ¥404.85 million, a decrease from ¥698.45 million in the previous year[47] - The company reported a net cash flow from financing activities of approximately -¥347.89 million, compared to a positive cash flow of ¥2.25 billion in the previous year[49] - The ending balance of cash and cash equivalents was approximately ¥1.16 billion, down from ¥1.05 billion year-over-year[50] - The company reported a net decrease in cash and cash equivalents of -138,117,033.54 CNY for the quarter[52] Expenses and Investments - Management expenses increased by 58.82% year-on-year, primarily due to increased R&D investments[18] - Financial expenses grew by 1116.22% year-on-year, mainly due to increased interest expenses on corporate bonds and foreign exchange losses[18] - Income tax expenses increased by 439.25% year-on-year, primarily due to increased withholding tax on overseas income[22] - The company experienced an asset impairment loss of CNY 11,263,140.33, compared to CNY 2,082,279.90 in the previous period[40] - Investment income rose by 1396.97% year-on-year, driven by gains from the disposal of available-for-sale financial assets and long-term equity investments accounted for using the equity method[18] - The company reported an investment income of CNY 29,785,402.04, a significant recovery from a loss of CNY 3,620,455.71 in the previous year[35] - Investment income increased to CNY 496,816,135.72 from CNY 33,454,577.36, marking a substantial growth[40] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 210,213[10] - The largest shareholder, Yao Wenbin, held 14.06% of the shares, totaling 387,732,912 shares[10] - The company implemented a cash dividend policy in accordance with its articles of association, ensuring the interests of all shareholders are protected[20] - The company completed its 2016 annual equity distribution on July 12, 2017[21] - The company is actively communicating with performance compensation obligors regarding unfulfilled performance commitments and will take further measures as necessary[19]

Financial Performance - Total revenue for the reporting period was ¥826,962,418.23, a decrease of 13.35% compared to ¥954,410,161.73 in the same period last year[21]. - Net profit attributable to shareholders was ¥267,118,883.60, down 36.17% from ¥418,500,603.55 year-on-year[21]. - Net profit after deducting non-recurring gains and losses was ¥224,806,728.98, a decline of 45.19% compared to ¥410,163,947.89 in the previous year[21]. - Basic earnings per share decreased by 33.33% to ¥0.10 from ¥0.15 year-on-year[21]. - The company achieved operating revenue of 826.96 million yuan, a decrease of 13.35% compared to the same period last year[38]. - The gross profit margin was 61.31%, showing a slight increase of 0.14% year-over-year[42]. - The mobile terminal games segment generated revenue of 721,004,850.75 CNY, down 10.38% from the previous year[42]. - The company reported a significant increase in financial expenses by 675.09% to 32.06 million yuan, primarily due to increased interest expenses[40]. - The company reported a financial expense of 6.525 million CNY related to the interest calculation based on bank loan rates for the non-interest-bearing loan[71]. Cash Flow and Liquidity - Net cash flow from operating activities was ¥249,757,277.80, down 44.64% from ¥451,158,316.21 in the same period last year[21]. - Cash flow from operating activities decreased by 44.64% to 249.76 million yuan, attributed to reduced operating revenue and increased R&D investment[40]. - The ending balance of cash and cash equivalents was ¥1.11 billion, down from ¥2.07 billion in the prior period[135]. - The company reported a net cash decrease of ¥263.28 million, contrasting with an increase of ¥1.58 billion in the previous period[135]. - Cash outflow from investment activities totaled ¥443.74 million, significantly reduced from ¥1.11 billion in the previous period[135]. - Cash flow from financing activities showed a net outflow of -¥75.24 million, compared to a net inflow of ¥2.24 billion in the previous period[135]. Assets and Liabilities - Total assets at the end of the reporting period were ¥10,370,135,498.15, a slight decrease of 0.30% from ¥10,401,416,342.70 at the end of the previous year[21]. - Total liabilities decreased to ¥1,724,325,708.89 from ¥1,923,196,709.93, showing a reduction of approximately 10.4%[122]. - Owner's equity increased to ¥8,645,809,789.26 from ¥8,478,219,632.77, marking an increase of about 2.0%[123]. - The company’s total liabilities at the end of the reporting period were 75,000,000 CNY, reflecting a decrease from the previous period's 80,000,000 CNY, which is a reduction of about 6.25%[149]. Research and Development - The company will continue to enhance R&D investment to promote the development of high-quality games and improve innovation capabilities[7]. - Research and development expenses increased by 27.47% to 192.03 million yuan, reflecting the company's commitment to enhancing product quality[40]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares during the reporting period[5]. - The company has implemented a share buyback, reducing total shares from 2,770,874,854 to 2,757,992,863 due to the cancellation of shares related to unfulfilled performance commitments[21]. - The company has committed to a share transfer restriction for shareholders, ensuring that shares acquired will not be transferred within 12 months from the date of acquisition[65]. - The company reported a total of 1,494,300.00 in owner contributions during the current period[143]. - The total amount of capital raised through common stock was 1,489,100.00, indicating strong shareholder support[143]. Strategic Initiatives - The company formed a strategic partnership with Tencent, enhancing collaboration and business opportunities[38]. - The company aims to enhance its international presence, with overseas revenue expected to continue increasing through partnerships with top global gaming companies[35]. - The company plans to continue its operational strategy and seek development opportunities through both organic growth and external expansion[74]. - The company plans to enhance its market expansion efforts through potential mergers and acquisitions, although no specific targets were mentioned in the report[149]. Compliance and Governance - The company confirmed that its financial statements comply with the accounting standards and accurately reflect its financial position, operating results, and cash flows[166]. - The company has evaluated its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its ongoing viability[164]. - The company has not engaged in any derivative investments or entrusted loans during the reporting period[57]. - The company has not disposed of any significant assets or equity during the reporting period[57]. Financial Management - The company maintains an AA credit rating, indicating strong debt repayment capability and low default risk[102]. - The company established a special account for the management of raised funds, ensuring compliance with the intended use[101]. - The company has implemented a special account for fundraising to ensure that the funds are used as specified in the fundraising prospectus[106]. - The company strictly adhered to the commitments outlined in the bond issuance prospectus during the reporting period[115].

Financial Performance - Total revenue for Q1 2017 was CNY 456,536,042.84, a decrease of 10.23% compared to CNY 508,548,977.30 in the same period last year[7] - Net profit attributable to shareholders was CNY 161,848,098.45, down 26.88% from CNY 221,350,691.89 year-on-year[7] - Net profit excluding non-recurring gains and losses was CNY 159,514,019.96, reflecting a 27.23% decline compared to CNY 219,195,112.41 in the previous year[7] - Basic and diluted earnings per share were both CNY 0.06, down 25.00% from CNY 0.08 in the previous year[7] - The company achieved operating revenue of CNY 456.54 million, a year-on-year decrease of 10.23%[26] - The net profit attributable to the parent company was CNY 161.85 million, down 26.88% year-on-year[26] - The total comprehensive income for Q1 2017 was ¥159,299,828.04, down from ¥235,546,453.59 in the previous year[50] Cash Flow and Assets - Operating cash flow for the period was CNY 168,413,612.72, a decrease of 18.65% from CNY 207,024,863.45 in the same quarter last year[7] - Interest receivables increased by 177.95% compared to the beginning of the year, mainly due to increased interest from time deposits[25] - Other current assets grew by 75.91% year-on-year, primarily due to an increase in prepaid corporate income tax[27] - Accounts payable rose by 31.07% compared to the beginning of the year, mainly due to increased business share payments[27] - The net cash flow from operating activities was ¥168,413,612.72, a decrease of 18.7% compared to ¥207,024,863.45 in the previous period[56] - The ending balance of cash and cash equivalents was ¥1,362,253,252.71, down from ¥1,619,329,763.64[57] Shareholder Information - The total number of unrestricted shares held by the top 10 shareholders is 443,150,409 shares, with the largest shareholder being Yao Wenbin[16] - The company reported a total of 55,727,209 shares held by shareholder Deng Pan, with 41,795,407 shares pledged[16] - The company has no preferred shareholders as indicated in the report[17] - The total number of restricted shares at the beginning of the period was 443,150,409 shares, which were fully released during the period[18] - The company has a total of 30,516,106 shares held by Liu Zhijun, which are classified as personal restricted shares[18] - The company has 15,790,891 shares held by shareholder Ye Kai, which are also classified as personal restricted shares[18] - The report indicates that there were no repurchase agreements among the top 10 common shareholders during the reporting period[16] - The company has a total of 24,541,900 shares held by Central Huijin Investment Ltd., a state-owned entity[16] - The report shows that there were no new restricted shares added during the reporting period[18] - The company has a total of 30,487,766 shares held by shareholder Qiu Zuguang, which are classified as personal restricted shares[18] Strategic Initiatives and Risks - The company faces risks related to game product development, including rapid market changes and player preferences[9] - There is a risk of core personnel loss, which could impact the company's competitive advantage in game development[10] - The company is currently planning a major asset restructuring, with its stock suspended since January 19, 2017, and is expected to remain suspended for up to three months[13] - The company plans to actively promote product R&D and market expansion in 2017, with the annual plan being executed normally[28] - The company has not indicated any major changes in the feasibility of its investment projects[36] Financial Management - Management expenses increased by 35.55% year-on-year, attributed to higher R&D investments[27] - Financial expenses surged by 701.36% year-on-year, mainly due to increased interest expenses on corporate bonds[27] - Investment income increased by 822.90% compared to the previous period, due to higher equity method investment income[27] - The company raised a total of RMB 1,499,999,998.59 through a private placement of 115,473,441 shares at a price of RMB 12.99 per share[32] - As of March 31, 2017, the company had utilized RMB 1,301,954,089.49 of the raised funds, with a remaining balance of RMB 195,876,432.23[33] - The company plans to distribute a cash dividend of RMB 0.19 per share based on a total of 2,770,874,854 shares, pending shareholder approval[37] - The company has completed an investment of RMB 400 million in Tianjin Fanyou as part of its strategic investment initiatives[36] - The company reported a net amount of RMB 1,487,884,525.15 from the fundraising after deducting related expenses[32] - The company has achieved a project investment progress of 87.50% for its strategic investment projects[36] - The company utilized RMB 12,336,000 to replace self-raised funds that were previously invested in projects[36] - The company has not reported any significant changes in its cash dividend policy during the reporting period[37] - The company has not disclosed any issues regarding the use and disclosure of raised funds[36]

Financial Performance - The company's operating revenue for 2016 was ¥1,854,687,805.34, representing a 65.04% increase compared to ¥1,123,778,618.24 in 2015[21] - The net profit attributable to shareholders for 2016 was ¥508,585,833.21, an increase of 8.12% from ¥470,408,837.57 in 2015[21] - The net cash flow from operating activities reached ¥875,913,189.32, marking an 80.72% increase from ¥484,673,118.85 in 2015[21] - The total assets at the end of 2016 amounted to ¥10,401,416,342.70, a 32.03% increase from ¥7,878,249,307.36 at the end of 2015[21] - The net assets attributable to shareholders increased by 31.75% to ¥8,411,956,258.86 at the end of 2016 from ¥6,384,874,475.07 at the end of 2015[21] - The basic earnings per share for 2016 was ¥0.18, a decrease of 5.26% compared to ¥0.19 in 2015[21] - The diluted earnings per share also stood at ¥0.18, reflecting a 5.26% decline from ¥0.19 in the previous year[21] - The weighted average return on net assets was 6.35%, down from 11.10% in 2015, indicating a decrease of 4.75%[21] - The company reported a net profit of approximately ¥219.20 million in Q1 2016, which decreased to a loss of approximately ¥117.98 million in Q4 2016[24] - The company reported a significant increase of 165.01% in equity assets due to new investments in Webzen Inc. and other ventures[29] Revenue Breakdown - The company's annual revenue for 2016 was ¥1.85 billion, representing a year-on-year growth of 65.04%, while net profit increased by 8.12% to ¥508.59 million[38] - The overseas revenue for 2016 reached approximately ¥824.06 million, marking a year-on-year increase of 44.43%[38] - Mobile games generated 1,578,238,919.25 yuan, accounting for 85.09% of total revenue, reflecting a 126.25% year-on-year growth[45] - The company’s overseas revenue surged by 323.35% to 824,058,647.95 yuan, while domestic revenue increased by 10.92% to 1,030,629,157.39 yuan[45] - The company’s major game "The King of Fighters 98 Ultimate" generated 949,972,589 yuan, representing 51.22% of the gaming business revenue[43] Investment and Acquisitions - The company has focused on a strategy of "internal growth" and "external development," continuously investing in and acquiring promising companies and teams[28] - The company acquired 100% equity of Nanjing Chushou Cultural Development Co., Ltd., completing the registration process on December 29, 2016[50] - The company issued corporate bonds totaling up to 1.6 billion yuan, with the first phase raising 800 million yuan successfully listed on the Shenzhen Stock Exchange[40] - The company has achieved a completion rate of 100% for the investment in the external investment project "Building Nest New Game" with an investment of CNY 2,200.00 million[79] - The company has successfully completed the use of all raised funds by the end of 2016[80] Cash Flow and Financial Management - Cash and cash equivalents increased by 295.46% to ¥883,289,579.54, primarily due to improved operating cash flow[58] - Net cash flow from investing activities decreased by 126.24% to -¥2,266,986,391.89, mainly due to equity investment payments[59] - Net cash flow from financing activities surged by 3,388.08% to ¥2,239,998,305.66, driven by private placement and bond issuance[60] - The company reported a significant reduction of 99% in deferred income tax liabilities to ¥53,105.75, attributed to the amortization of deferred taxes related to asset evaluations in business combinations[66] Shareholder Returns and Dividends - The company plans to distribute a cash dividend of ¥0.19 per 10 shares, based on a total of 2,770,874,854 shares[4] - For the year 2016, the company proposed a cash dividend of RMB 0.19 per share, amounting to RMB 52,646,622.23, representing 10.15% of the net profit attributable to ordinary shareholders[106] - The total distributable profit for 2016 was RMB 1,354,622,820.50, with cash dividends accounting for 100% of the profit distribution[99] - The company’s cash dividend policy aligns with its articles of association, ensuring the protection of minority shareholders' rights[98] Strategic Direction and Market Position - The company aims to enhance its IP resource acquisition and development to improve the success rate of IP adaptation games[93] - The company plans to continue its "internal + external" development strategy, focusing on high-quality game development and diversified IP reserves[92] - The company has shifted its focus to mobile terminal game product development and agency distribution, emphasizing the importance of copyright resources in the mobile gaming industry[84] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[117] Governance and Compliance - The company has established a framework to avoid conflicts of interest in its operations and transactions[108] - The company is focused on maintaining compliance with information disclosure obligations and internal decision-making processes[108] - The company has committed to ensuring that related party transactions are conducted at fair market prices to protect the interests of all shareholders[112] - The company has maintained compliance with all commitments made to minority shareholders during the reporting period[124] Management and Human Resources - The total number of employees in the company is 1,634, with 1,152 in R&D, 283 in operations, and 177 in management[186][187] - The company has established a comprehensive training program to enhance employee skills and foster a learning environment[189] - The company has a structured remuneration decision process based on performance and market standards[182] - The company has a diverse management team with various backgrounds and expertise[180] Future Outlook - The company provided a future outlook, projecting a revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion[118] - The company aims to improve operational efficiency, targeting a reduction in costs by 15% through automation and process optimization[116] - A new marketing strategy was introduced, focusing on digital channels, which is anticipated to increase customer acquisition by 25%[117]

Financial Performance - Total assets increased by 29.54% to CNY 10,205,630,552.75 compared to the end of the previous year[7] - Net profit attributable to shareholders rose by 36.16% to CNY 141,127,892.94 for the reporting period[7] - Total revenue for the period reached CNY 401,369,631.03, reflecting a growth of 50.06% year-on-year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 43.41% to CNY 136,597,850.14[7] - The basic earnings per share for the period was CNY 0.05, up 25.00% compared to the same period last year[7] - The weighted average return on equity improved to 1.69%, an increase of 0.42% from the previous year[7] - Cash flow from operating activities for the year-to-date reached CNY 698,449,526.47, a significant increase of 167.42%[7] - The company's operating revenue for the first nine months of 2016 reached CNY 1,355.78 million, representing an increase of 87.03% compared to the same period last year[23] - The net profit attributable to ordinary shareholders for the same period was CNY 559.63 million, up 105.65% year-on-year[23] - The company reported a significant increase in revenue for Q3 2016, with total revenue reaching approximately 1.5 billion RMB, representing a year-over-year growth of 25%[34] - The net profit for Q3 2016 reached CNY 596.37 million, compared to CNY 292.63 million in Q3 2015, marking an increase of 103.5%[67] - The total profit for Q3 2016 was CNY 610.51 million, up from CNY 330.94 million in the previous year, reflecting an increase of 84.5%[66] - The basic and diluted earnings per share for Q3 2016 were both CNY 0.20, compared to CNY 0.11 in Q3 2015, indicating an increase of 81.8%[67] - The total comprehensive income for Q3 2016 was CNY 608.53 million, compared to CNY 296.74 million in the previous year, reflecting an increase of 105.5%[67] Shareholder and Management Commitments - The company has committed to not providing financial assistance, including loans or guarantees, to incentive recipients since January 2014, and this commitment is being fulfilled normally[29] - The management shareholders have committed to avoid direct or indirect competition with the company's business for a period of 60 months from the completion of the restructuring, and this commitment is being fulfilled normally[30] - The company has set performance commitments for its subsidiary, requiring net profits of at least RMB 120 million, RMB 160 million, RMB 200 million, and RMB 240 million for the years 2013 to 2016 respectively, and these commitments are being fulfilled normally[30] - The company has also established performance commitments for another subsidiary, requiring net profits of at least RMB 75 million, RMB 125 million, RMB 156 million, and RMB 190 million for the years 2013 to 2016 respectively, and these commitments are being fulfilled normally[30] - The management shareholders have committed to reduce related party transactions with the company after the restructuring, and this commitment is being fulfilled normally[30] - The company has a lock-up period of 36 months for shares acquired by certain shareholders during the restructuring, which is being fulfilled normally[30] - The company has disclosed that it will publish a special audit report and impairment test report for the year 2015, ensuring transparency in its financial commitments[29] - The company has committed to not transferring shares obtained from the transaction for 12 months post-transaction, ensuring stability in shareholding[29] - The company has established a compensation arrangement for shareholders if actual net profits fall below the committed levels, ensuring accountability[30] - The company has committed to maintaining competitive advantages and ensuring the sustainable development of its business through various commitments from management shareholders[30] Investment and Fund Utilization - The total amount of funds raised through public offerings is CNY 600.29 million[36] - The cumulative amount of changed use of raised funds is CNY 105.78 million, accounting for 17.62% of the total raised funds[37] - The total amount of raised funds invested by the end of the reporting period is CNY 646.24 million[37] - The mobile terminal single-player game development project has an investment of CNY 5.24 million, with a completion rate of 100%[37] - The mobile terminal online game development project has an investment of CNY 5.91 million, with a completion rate of 104.98%[37] - The total investment in the committed investment projects is CNY 20.02 million, with a cumulative investment of CNY 20.35 million[37] - The acquisition of Hainan Dongwang Pioneer Network Technology Co., Ltd. was completed with an investment of CNY 29.27 million, achieving a completion rate of 102.07%[37] - The investment in Huayi Brothers Media Corporation is CNY 128 million, with a completion rate of 100%[37] - The company has not changed the use of raised funds during the reporting period[36] - The company has made commitments to shareholders and has fulfilled them on time[36] - The company raised a total of RMB 1,499,999,998.59 through a non-public offering of 115,473,441 shares at a price of RMB 12.99 per share[40] - As of September 30, 2016, the company had utilized RMB 1,202,643,333.43 of the raised funds, with an initial self-funding of RMB 123,360,000.00 prior to the funds being available[41] - The remaining balance of the raised funds was RMB 291,150,134.64, which includes net interest income after deducting fees[41] - The company invested RMB 22 million in Beijing Zhuchao New Game Network Technology Co., holding 32.67% of its equity, with an assessed value of RMB 22.3013 million[39] - The company terminated the project for the marketing advertising alliance platform, reallocating the originally planned RMB 3 million investment towards the acquisition of Hainan Dongwang Pioneer Network Technology Co.[39] - The company has completed the use of all raised funds as of the reporting period[39] - The company has made adjustments to the implementation locations of several fundraising projects, including changes to the sites in Beijing[39] - The company plans to use the remaining raised funds for future investments, with specific intentions yet to be determined[39] - The company has undergone significant changes in project feasibility, leading to the termination and reallocation of funds for various projects[39] - The company has received regulatory approval for its asset purchase and fundraising activities, ensuring compliance with financial regulations[40] - The company reported a total investment commitment of 148.7 million yuan, with a cumulative investment of 120.26 million yuan by the end of the reporting period, achieving a progress rate of 88.45%[42] - The company has allocated 130 million yuan of remaining raised funds for strategic investment in Webzen Inc., and 270 million yuan for the development of mobile terminal game products[44] Operational Efficiency and Cost Management - The company has committed to reducing operational costs by 10% through efficiency improvements in the next fiscal year[34] - The company's gross profit margin improved, with operating costs amounting to CNY 752,304,070.89, up from CNY 404,655,849.24, indicating a rise in operational efficiency[65] - Management expenses increased to CNY 76,450,377.61 from CNY 40,046,720.01, indicating a rise in operational costs[59] - The company's financial expenses rose to CNY 9,566,674.61, compared to a negative expense of CNY 1,874,336.78 in the previous year, reflecting increased borrowing costs[59] - The tax expenses for the third quarter were CNY 2,018,574.23, a decrease from CNY 11,852,073.44 in the same period last year, indicating improved tax efficiency[59] Market and Product Development - The company is investing heavily in R&D, with an allocation of 15% of total revenue towards new technology development[34] - Market expansion plans include entering three new international markets by the end of 2017, aiming for a 10% market share in each[34] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million RMB allocated for potential deals[34] - A new marketing strategy focusing on digital channels is expected to increase user engagement by 30% in the next quarter[34] - New product launches are expected to contribute an additional 200 million RMB in revenue in the upcoming quarter[34] Risk Management - The company faces risks related to game product development, including rapid market changes and player preferences[10] - There is a risk of core personnel turnover, which could impact the company's competitive advantage in game development[10]

Financial Performance - Total revenue for the first half of 2016 reached RMB 954.41 million, an increase of 108.65% compared to RMB 457.43 million in the same period last year[16]. - Net profit attributable to shareholders was RMB 418.50 million, representing a growth of 148.40% from RMB 168.48 million year-on-year[16]. - Operating cash flow for the period was RMB 451.16 million, up 180.43% from RMB 160.88 million in the previous year[16]. - Basic earnings per share increased to RMB 0.15, a rise of 114.29% compared to RMB 0.07 in the same period last year[16]. - The total profit reached CNY 454.14 million, reflecting a growth of 119.73% compared to the previous year[25]. - The company achieved operating revenue of CNY 954.41 million, a year-on-year increase of 108.65%[25]. - The mobile game segment generated revenue of approximately 804.53 million RMB, reflecting a year-on-year growth of 61.49%[36]. - The company reported a significant increase in cash and cash equivalents, rising by 431.85% to CNY 1.58 billion, mainly from fundraising activities[27]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 10.06 billion, reflecting a 27.71% increase from RMB 7.88 billion at the end of the previous year[16]. - The company's total assets as of the end of the reporting period were CNY 10,028,838,792.62, up from CNY 7,965,227,182.90 at the beginning of the year[133]. - The total liabilities increased to CNY 1,771,779,561.46 from CNY 1,266,205,265.68, indicating a rise of 40%[133]. - The company's total liabilities were not explicitly stated, but the short-term borrowings remained constant at CNY 100 million[127]. Investment and Acquisitions - The company completed the acquisition of 80% equity in Tianma Timespace and 30% equity in upstream information, enhancing its R&D capabilities and profitability[42]. - The company has invested in several VR-related companies, including Beijing LeKe LingJing Technology Co., and has secured rights for the mobile adaptation of Ubisoft's "Assassin's Creed Online: Allies" in mainland China[43]. - The company has terminated the project for the development of mobile terminal single-player games and inter-network page games due to significant changes in feasibility[50]. - The company invested CNY 22 million for a 32.67% stake in Beijing Zhuchao New Game Network Technology Co., with an assessed value of CNY 22.3013 million[51]. - The company has been actively involved in mergers and acquisitions, including the purchase of stakes in various technology firms to expand its market presence[158]. Cash Flow and Financing - Cash flow from operating activities surged by 180.43% to CNY 451.16 million, primarily due to increased revenue[27]. - The company achieved a net cash inflow from financing activities of CNY 2,240,177,955.32, compared to a net outflow of CNY 59,060,103.20 in the previous period[141]. - The company raised a total of RMB 1,499,999,998.59 through a private placement of 115,473,441 shares at a price of RMB 12.99 per share in January 2016[56]. - The company has utilized 796 million RMB of the raised funds for capital increase in Tianjin Fanyou Technology, with all uses within the approved scope[80]. Shareholder Information - The profit distribution plan for 2015 included a cash dividend of RMB 0.17 per share, which was implemented on July 11, 2016[63]. - The company reported a positive net profit for the reporting period, but no cash dividend distribution plan was proposed despite having undistributed profits[64]. - Major shareholder姚文彬 holds 17.80% of shares, totaling 493,650,409 shares, with a decrease of 62,000,000 shares during the reporting period[113]. - The total number of shareholders at the end of the reporting period is 183,584[113]. Risks and Challenges - The company faces risks related to game product development, including rapid market changes and player preferences[20]. - There is a risk of core personnel turnover, which could impact the company's competitive advantage in game development[21]. - The company is pursuing an "internal + external" growth strategy, which includes mergers and acquisitions, but this also introduces integration risks[22]. Corporate Governance and Compliance - The financial statements were approved by the board of directors on August 23, 2016, indicating a commitment to transparency and accountability[168]. - The company maintained compliance with its cash dividend policy and shareholder rights protection mechanisms[64]. - There were no significant litigation or arbitration matters reported during the period[66]. - The company has not identified any issues or problems in the use and disclosure of raised funds[60]. Operational Developments - The company appointed Hu Bin as the new General Manager on April 8, 2016, following the resignation of the previous General Manager due to strategic development needs[121]. - The company has included 34 subsidiaries in its consolidated financial statements, all of which are wholly owned except for one holding subsidiary with an 80% ownership[169]. - The company added 2 new subsidiaries this period: Beijing Quwan Tiancheng Technology Co., Ltd. and Fan You (Hong Kong) Co., Ltd., while one subsidiary, Youzhou Information Technology (Tianjin) Co., Ltd., was deregistered[171].