Revenue and Profitability - Total revenue for Q1 2020 was CNY 409,045,957.44, an increase of 14.97% compared to CNY 355,788,447.93 in the same period last year[9] - Net profit attributable to shareholders was CNY 94,112,770.75, a decrease of 49.60% from CNY 186,748,323.06 year-on-year[9] - Net profit excluding non-recurring gains and losses was CNY 88,666,622.37, down 41.26% from CNY 150,952,624.78 in the previous year[9] - Basic earnings per share decreased by 57.14% to CNY 0.03 from CNY 0.07 year-on-year[9] - The company reported a revenue of 409.46 million yuan for Q1 2020, representing a year-on-year growth of 14.97%, primarily driven by the strong performance of "One Punch Man: The Strongest Man" in overseas markets[35] - The company reported a net loss of approximately CNY 758.21 million, slightly higher than the loss of CNY 757.47 million in the previous period[56] - The net profit for the current period is 21,427,144.70 CNY, compared to 85,338,009.74 CNY in the previous period, indicating a decrease of about 74.9%[78] - The operating profit for the current period is 29,363,793.69 CNY, down from 105,394,339.55 CNY in the previous period, reflecting a decline of approximately 72.1%[78] Cash Flow and Assets - Operating cash flow for the period was CNY 21,090,830.50, a significant increase of 319.68% from CNY 5,025,498.52 in the same quarter last year[9] - Net cash flow from operating activities increased by 320% year-on-year, mainly due to increased revenue[33] - Cash and cash equivalents increased to CNY 1.85 billion from CNY 1.68 billion, a growth of 10.1%[47] - The cash inflow from investment activities for the current period is 131,846,563.92 CNY, compared to 41,261,879.13 CNY in the previous period, representing an increase of about 219.5%[85] - The total current assets amounted to approximately CNY 2.23 billion, an increase of 17.6% from CNY 1.90 billion as of December 31, 2019[47] - The total assets reached CNY 6.21 billion, an increase of 3.8% compared to CNY 5.99 billion at the end of 2019[56] - The total cash and cash equivalents at the end of the period reached ¥273,474,874.50, up from ¥86,129,545.74, indicating a net increase of ¥54,022,271.70[92] Liabilities and Equity - Total liabilities increased to CNY 633.29 million, compared to CNY 440.29 million, marking a rise of 43.8%[53] - Current liabilities rose to CNY 571.43 million, up from CNY 374.72 million, reflecting a growth of 52.5%[53] - The total equity attributable to shareholders was CNY 5.58 billion, an increase from CNY 5.55 billion, showing a growth of 0.5%[56] - Total liabilities reached $821,656,275.61, down from $875,309,200.44, indicating a reduction of $53,652,924.83[103] - Total equity was reported at $5,508,479,943.15, an increase from $5,476,162,009.16, with a change of $32,317,933.99[103] Expenses and Financial Performance - Total operating costs amounted to ¥323,608,621.70, up from ¥226,960,500.17, reflecting a significant increase in expenses[68] - Research and development expenses rose to ¥86,544,582.34, compared to ¥70,023,325.56 in the previous period, highlighting increased investment in innovation[68] - Financial expenses decreased by 36% year-on-year, mainly due to increased interest income and reduced exchange losses[29] - Investment income decreased by 70% year-on-year, primarily due to reduced earnings from financial assets held during the period[30] - The company reported a significant increase in sales expenses to ¥122,155,871.97 from ¥6,794,356.08, reflecting higher marketing and sales efforts[68] Shareholder Information - The company reported a total of 159,072 common shareholders at the end of the reporting period[14] - The top shareholder, Yao Wenbin, holds 6.98% of the shares, totaling 192,507,902 shares[14] Tax and Government Subsidies - Government subsidies recognized in the current period amounted to CNY 2,601,158.10[9] - The company reported a tax expense of 4,936,648.99 CNY for the current period, down from 20,051,612.83 CNY in the previous period, indicating a decrease of about 75.6%[78] - The company received a tax refund of 7,218,622.94 CNY during the current period, compared to 700,000.00 CNY in the previous period, showing a significant increase[82] Accounting Standards and Reporting - The company adopted new revenue and leasing standards starting January 1, 2020, which impacted the financial statements[93] - The first quarter report was not audited, which may affect the reliability of the financial data presented[106]

Financial Performance - Net profit attributable to shareholders was ¥133,911,009.74, a decrease of 1.53% year-on-year[9]. - Operating revenue for the period was ¥505,639,429.72, representing a year-on-year increase of 15.56%[9]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥179,423,749.72, an increase of 38.32% compared to the same period last year[9]. - Basic earnings per share for the period was ¥0.05, unchanged from the previous year[9]. - The weighted average return on net assets was 2.42%, an increase of 0.90% compared to the previous year[9]. - The company reported a net loss of CNY 682,478,841.16, an improvement from a loss of CNY 1,627,376,752.74 in the previous year[63]. - Net profit for the period was ¥132,809,675.36, a decrease of 6.5% from ¥142,160,186.17 in the prior period[76]. - The net profit for the current period is CNY 342,082,175.64, a decrease of 39.3% compared to CNY 564,339,445.56 in the previous period[93]. - The total comprehensive income for the current period is CNY 393,645,493.98, compared to CNY 609,545,046.27 in the previous period, reflecting a decrease of 35.4%[97]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥6,203,547,646.92, an increase of 5.91% compared to the previous year[9]. - The total current assets reached CNY 1,836,849,731.12, compared to CNY 1,595,729,885.22 in December 2018, indicating an increase of about 15.1%[57]. - The total liabilities decreased to CNY 568,988,569.57 from CNY 729,194,518.37, a reduction of approximately 22%[60]. - The equity attributable to shareholders of the parent company increased to CNY 5,635,958,359.24 from CNY 5,128,642,362.40, representing an increase of about 9.9%[63]. - Total liabilities increased to ¥826,610,645.87 from ¥802,417,688.45, indicating a rise of 3.0%[73]. - The company's total equity reached ¥5,591,512,066.50, an increase from ¥5,467,610,046.22, reflecting a growth of 2.3%[73]. - The company's total assets have been impaired by CNY 778,551.45, compared to CNY 1,895,893.53 in the previous period[93]. - The company reported a cash balance of ¥1,240,526,348.63 as of December 31, 2018, unchanged on January 1, 2019[124]. Cash Flow - Cash flow from operating activities for the year-to-date was ¥317,789,246.08, a decrease of 57.11% compared to the same period last year[9]. - The net cash flow from operating activities decreased by 57% year-on-year, primarily due to a decline in operating revenue[36]. - The net increase in cash and cash equivalents rose by 248% year-on-year, largely influenced by financing activities[39]. - Cash received from sales of goods and services was ¥452,733,115.33, down 45.6% from ¥832,885,616.57 in the previous period[117]. - Cash flow from financing activities resulted in a net outflow of ¥129,849,926.47, compared to a net outflow of ¥870,868,726.85 in the previous period[120]. - The ending balance of cash and cash equivalents was ¥106,765,126.17, up from ¥81,835,452.33 in the previous period[120]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 164,824[13]. - The largest shareholder, Yao Wenbin, holds 6.98% of the shares, totaling 192,507,902 shares[13]. - The company repurchased a total of 27,612,843 shares, accounting for 1.0014% of the total share capital, with a total transaction amount of approximately RMB 104.56 million[44]. - The company plans to continue its share repurchase program, with a total amount not less than RMB 100 million and not exceeding RMB 200 million[44]. Operational Challenges - The company anticipates potential significant changes in net profit compared to the previous year due to various market and operational challenges[49]. - The company has not reported any new product launches or significant market expansions during this period[74]. Research and Development - Research and development expenses increased to ¥88,849,312.08, compared to ¥79,368,787.48, marking an increase of 11.7%[74]. - Research and development expenses decreased to ¥230,137,844.47 from ¥280,338,507.80, a reduction of approximately 18%[90]. - Research and development expenses for the current period are CNY 16,409,764.94, significantly reduced from CNY 39,500,241.29 in the previous period[101].

Financial Performance - Total revenue for the first half of 2019 was ¥696,243,659.02, a decrease of 39.16% compared to ¥1,144,435,819.27 in the same period last year[24] - Net profit attributable to shareholders was ¥211,042,028.48, down 44.51% from ¥380,352,328.41 year-on-year[24] - Net cash flow from operating activities was ¥137,280,087.19, a decline of 73.39% compared to ¥515,917,827.69 in the previous year[24] - Basic and diluted earnings per share were both ¥0.08, down 42.86% from ¥0.14 in the same period last year[24] - The company achieved operating revenue of RMB 696.24 million, a decrease of 39.16% year-on-year, primarily due to the delayed launch of key self-developed game products[48] - The net profit attributable to shareholders was RMB 211.04 million, down 44.51% compared to the previous year[48] - The company reported a significant decrease in employee compensation payable, dropping to CNY 48,894,403.16 from CNY 110,740,639.38, a decline of about 56%[169] - Net profit for the first half of 2019 was CNY 209,272,500.28, compared to CNY 422,179,259.39 in the same period of 2018, indicating a decline of 50.5%[187] - The company reported a total comprehensive income of ¥27.15 million for the first half of 2019, compared to ¥368.61 million in 2018, a decrease of approximately 93%[198] Assets and Liabilities - Total assets increased by 2.94% to ¥6,029,646,043.74 from ¥5,857,256,178.33 at the end of the previous year[24] - Net assets attributable to shareholders rose by 6.12% to ¥5,442,465,128.17 from ¥5,128,642,362.40 at the end of the previous year[24] - The company's total liabilities amounted to CNY 785,937,609.45, a slight decrease from CNY 802,417,688.45 in the previous period[183] - Total current assets as of June 30, 2019, amounted to CNY 1,623,616,359.76, an increase from CNY 1,595,729,885.22 as of December 31, 2018, reflecting a growth of approximately 1.8%[166] - Total non-current assets reached CNY 4,406,029,683.98, up from CNY 4,261,526,293.11, marking an increase of about 3.4%[166] - The total number of unrestricted shares increased to 2,600,371,261, accounting for 94.30% of the total shares after the change[125] Shareholder Information - The total number of shareholders at the end of the reporting period was 175,246[134] - The largest shareholder, Yao Wenbin, holds 6.98% of the shares, totaling 192,507,902 shares[134] - Liu Huicheng, another major shareholder, holds 6.05% of the shares, totaling 166,890,761 shares, with 125,168,071 shares under lock-up[134] - The company’s limited sale shares decreased due to the impact of executive lock-up shares according to relevant regulations[125] - The top shareholder, Yao Wenbin, holds 192,507,902 shares of common stock, representing a significant portion of the company's equity[141] Game Development and Market Strategy - The company launched the self-developed game "One Punch Man: The Strongest Man" on June 19, which performed well, ranking first in the App Store free chart and fourth in the game sales chart on its first day[48] - The company plans to launch multiple new games in the second half of 2019, including "Jingjie: Lingya Duel" and "My Hero Academia: School Season" to enhance its product offerings[49] - The company is actively enhancing its international distribution capabilities, achieving notable success with titles like "Miracle MU: Awakening" in overseas markets[45] - The gaming industry faces intensified competition, and the company aims to enhance its R&D capabilities to respond to market changes effectively[77] - The company plans to focus on market expansion and new product development in the upcoming quarters[194] Cost Management and R&D - Research and development expenses were RMB 157.87 million, a decrease of 27.60% year-on-year, reflecting the company's focus on cost management amid revenue decline[50] - Research and development expenses for the first half of 2019 were CNY 141,288,532.39, down from CNY 200,969,720.32 in the same period of 2018, a reduction of 29.6%[184] - The company’s fixed assets decreased by 38% year-on-year, primarily due to the reclassification of some office buildings to investment properties[38] Share Repurchase and Dividends - The company plans not to distribute cash dividends or issue bonus shares[7] - The company initiated a share repurchase plan using its own funds, aimed at implementing an employee stock ownership plan[49] - The company approved a share repurchase plan with a total amount not less than RMB 100 million and not exceeding RMB 200 million, with a repurchase price not exceeding RMB 5.27 per share[115] - As of June 30, 2019, the company had repurchased 26,578,843 shares, representing 0.9639% of the total share capital, with a total payment of RMB 100,945,823.07[117] Regulatory Compliance and Risk Management - The company plans to maintain compliance with regulatory policies in the gaming industry to mitigate operational risks[76] - The company is focused on addressing risks associated with new game development and operations to ensure timely product launches[78] - The company has not faced any major litigation or regulatory penalties during the reporting period, reflecting a stable operational environment[91]

Revenue and Profit - Total revenue for Q1 2019 was ¥355,788,447.93, a decrease of 26.31% compared to ¥482,786,601.50 in the same period last year[9] - Net profit attributable to shareholders was ¥186,748,323.06, an increase of 41.94% from ¥131,572,064.59 year-on-year[9] - Net profit excluding non-recurring gains and losses was ¥150,952,624.78, up 17.19% from ¥128,805,357.07 in the previous year[9] - Basic earnings per share increased to ¥0.07, a rise of 40.00% compared to ¥0.05 in the previous year[9] - The company reported a revenue of 355 million yuan for Q1 2019, a decrease of 26.31% compared to the same period last year, primarily due to reduced income from game products such as "The King of Fighters 98 Ultimate Match OL" and "The Great Ruler 2"[31] - Net profit for the current period was ¥185,854,604.67, an increase of 29.5% compared to ¥143,544,043.67 in the previous period[64] - The company reported a decrease in employee compensation payable from CNY 110,740,639.38 to CNY 48,719,076.07, a reduction of about 56%[48] Cash Flow and Operating Activities - Net cash flow from operating activities was ¥5,025,498.52, down 90.85% from ¥54,942,039.69 in the same period last year[9] - The net cash flow from operating activities decreased by 91% year-on-year, mainly due to a decline in revenue[28] - Cash flow from operating activities generated a net amount of $5.03 million, down from $54.94 million in the previous period[79] - Operating cash flow for the current period was ¥15,930,792.29, a decrease of 70.5% compared to ¥54,010,882.01 in the previous period[86] Assets and Liabilities - Total assets at the end of the reporting period were ¥6,272,919,152.05, an increase of 7.10% from ¥5,857,256,178.33 at the end of the previous year[9] - Total current assets increased to CNY 1,707,516,264.30 from CNY 1,595,729,885.22, representing a growth of approximately 7% year-over-year[45] - Non-current assets totaled CNY 4,565,402,887.75, up from CNY 4,261,526,293.11, indicating a growth of approximately 7%[45] - Total liabilities amounted to CNY 778,281,556.28, up from CNY 729,194,518.37, which is an increase of about 7%[48] - Total liabilities rose to ¥911,932,146.48, up from ¥802,417,688.45, indicating an increase of 13.7%[61] - The total liabilities and equity decreased to CNY 5,857,256,178.33 from CNY 6,145,870,214.81, reflecting a reduction of about 4.69%[96] Investment and Income - Investment income increased by 108% year-on-year, primarily due to higher returns from financial assets held during the period[25] - The company reported an investment income of ¥42,589,693.14, up from ¥20,447,592.21, representing a significant increase of 108.5%[64] - The company received ¥2,100,000.00 from investment activities, indicating ongoing capital inflow[86] - Cash inflow from investment activities totaled $41.26 million, compared to $11.53 million in the previous period[79] Comprehensive Income and Other Financial Metrics - The company’s other comprehensive income decreased by 1238% year-on-year, mainly due to adjustments related to the new financial instrument standards[22] - The company’s other comprehensive income showed a significant decline, moving from CNY 33,417,453.01 to CNY -380,335,416.69[51] - The company’s other comprehensive income after tax was -¥30,179,631.30, compared to -¥66,136,407.68 in the previous period, showing an improvement[64] - The company maintained its dividend payable at CNY 70,000,000.00, unchanged from the previous period[48] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 180,682[13] - The company repurchased a total of 1,805,300 shares, accounting for 0.0655% of the total share capital, with a total payment of approximately 7.47 million yuan[38]

Revenue Performance - Total revenue for Q1 2019 was ¥355,788,447.93, a decrease of 26.31% compared to ¥482,786,601.50 in the same period last year[9]. - The company's revenue for Q1 2019 was 355 million yuan, a decrease of 26.31% compared to the same period last year, primarily due to reduced income from game products "The King of Fighters 98 Ultimate Match OL" and "The Great Ruler 2"[32]. - Total operating revenue for the current period was ¥355,788,447.93, a decrease of 26.4% compared to ¥482,786,601.50 in the previous period[62]. - The company's operating revenue for the current period is ¥178,772,548.17, a decrease of 20.8% compared to ¥225,800,810.81 in the previous period[68]. Profitability - Net profit attributable to shareholders was ¥186,748,323.06, an increase of 41.94% from ¥131,572,064.59 year-on-year[9]. - Net profit excluding non-recurring gains and losses reached ¥150,952,624.78, up 135.27% from ¥64,162,706.92 in the previous year[9]. - Net profit for the current period was ¥185,854,604.67, an increase of 29.5% compared to ¥143,544,043.67 in the previous period[64]. - The net profit for the current period is ¥85,338,009.74, compared to a net loss of ¥40,991,498.24 in the previous period, indicating a significant turnaround[71]. - The total comprehensive income for the current period is ¥94,362,629.26, compared to a total comprehensive loss of ¥40,991,498.24 in the previous period[74]. Cash Flow - Operating cash flow for the period was ¥5,025,498.52, down 90.85% from ¥54,942,039.69 in the same quarter last year[9]. - The cash flow from operating activities for the current period is ¥5,025,498.52, down from ¥54,942,039.69 in the previous period[78]. - The total cash inflow from operating activities is ¥289,050,926.65, down from ¥521,634,490.81 in the previous period[78]. - Net cash flow from operating activities decreased to CNY 15,930,792.29, a decline of 70% compared to CNY 54,010,882.01 in the prior period[85]. Assets and Liabilities - Total assets at the end of the reporting period were ¥6,272,919,152.05, reflecting a growth of 7.10% from ¥5,857,256,178.33 at the end of the previous year[9]. - Total assets reached ¥6,683,159,244.30, up from ¥6,270,027,734.67, reflecting a growth of 6.6%[62]. - Total liabilities amounted to ¥778,281,556.28, compared to ¥729,194,518.37, showing an increase of about 7%[49]. - Total liabilities rose to ¥911,932,146.48, compared to ¥802,417,688.45, marking an increase of 13.7%[62]. - The total assets of the company amounted to CNY 6,270,027,734.67, down from CNY 6,558,995,231.05, representing a decline of about 4.39%[100]. Shareholder Information - The total number of shareholders at the end of the reporting period was 180,682[14]. - The company repurchased a total of 1,805,300 shares, accounting for 0.0655% of the total share capital, with a total payment of approximately 7.47 million yuan[39]. Investment and Expenses - Investment income increased by 108% year-on-year, mainly due to higher returns from financial assets held during the period[26]. - Research and development expenses for the current period were ¥70,023,325.56, a decrease of 11.7% from ¥79,221,861.92 in the previous period[64]. - The company reported investment income of ¥35,589,697.28 for the current period, with no investment income reported in the previous period[68]. - The company’s financial expenses decreased by 136% year-on-year, mainly due to reduced interest expenses and foreign exchange losses[25]. Other Financial Metrics - The weighted average return on net assets was 3.44%, an increase of 1.90% compared to 1.54% in the previous year[9]. - The company’s other comprehensive income showed a significant decline to -¥380,335,416.69 from ¥33,417,453.01, indicating a negative shift in financial performance[52]. - Other comprehensive income after tax was reported at -¥30,179,631.30, compared to -¥66,136,407.68 in the previous period, indicating an improvement[64]. - The company’s inventory levels were not specified, but the overall financial health appears stable with a focus on managing receivables and liabilities effectively[55]. Regulatory and Compliance - The company has not yet audited its first quarter report, indicating that the figures are subject to change[104]. - The company has adopted new financial accounting standards effective January 1, 2019, which may impact future financial reporting[103].

Financial Performance - The company's operating revenue for 2018 was ¥1,970,323,556.32, an increase of 11.43% compared to ¥1,768,214,466.66 in 2017[31]. - The net profit attributable to shareholders was -¥3,149,933,630.14, a decrease of 1,293.63% from ¥263,894,420.28 in 2017[31]. - The net cash flow from operating activities increased by 26.36% to ¥845,902,517.48 from ¥669,422,510.52 in 2017[31]. - The total assets at the end of 2018 were ¥5,857,256,178.33, a decrease of 40.74% from ¥9,884,033,738.80 at the end of 2017[31]. - The company reported a basic earnings per share of -¥1.14, down 1,240.00% from ¥0.10 in 2017[31]. - The net profit attributable to shareholders for Q4 2018 was -¥3,666,281,695.75, indicating a significant loss in that quarter[32]. - The company recorded an impairment provision for goodwill of CNY 338,035,560, which had a substantial impact on its financial performance[50]. - The company reported an asset impairment loss of ¥3,681,545,226.76, which negatively impacted profit margins[78]. R&D and Market Strategy - The company emphasizes the importance of maintaining a high-quality and stable game development talent pool to sustain its competitive advantage[13]. - The company is committed to enhancing its R&D capabilities and responding quickly to market demands to mitigate risks associated with new game development and operations[12]. - The company acknowledges the intensified competition in the gaming industry and is focused on strengthening its R&D strength to maintain and expand its market position[11]. - The company aims to build a robust R&D system centered on product quality to achieve sustainable development and enhance its competitive strength[16]. - The company has established a strategic direction focused on product-centric development and enhancing its R&D capabilities[54]. - The company has optimized its organizational structure into three main business lines: R&D, operations, and platform support, to improve operational efficiency[55]. - The company plans to continue focusing on technology-driven and product-centered strategies, with over ten products currently under development, including "One Punch Man: The Strongest Man" which has received a game license[105]. Talent Management - The company has established a compensation management system to attract and retain talent, enhancing employee cohesion and core competitiveness[13]. - The company has adjusted its organizational structure and optimized talent to enhance operational management capabilities amid a challenging industry environment[104]. - The company has established a five-year labor contract and non-compete agreement with key personnel[126]. - The company has established a five-year labor contract and non-compete agreement for key personnel, preventing them from engaging in similar businesses during and two years after their tenure[134]. Compliance and Regulatory Environment - The company will actively monitor changes in laws and regulations to ensure compliance and mitigate risks associated with industry supervision[10]. - The company is focused on compliance with legal and regulatory requirements regarding related party transactions[126]. - The company has committed to fair and transparent dealings in all related party transactions, adhering to legal and regulatory requirements[134]. - The company has outlined measures to prevent any potential conflicts of interest arising from related party transactions[137]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the fiscal year 2018[6]. - The cumulative distributable profit for the parent company at the end of 2018 was -1,766,345,503.14 RMB[118]. - The company did not declare any cash dividends for the year 2018 due to negative distributable profits[120]. - The cash dividend distribution plan for 2018 was approved, stating no cash dividends, no stock dividends, and no capital reserve increase[120]. - The company’s profit distribution policy requires that cash dividends should not be less than 10% of the distributable profit for the year[111]. Market Expansion and Product Development - The company achieved significant success in overseas markets with titles like "Miracle MU: Awakening" and "The King of Fighters 98 Ultimate Match OL" and plans to strengthen international partnerships[48]. - The company is expanding its overseas distribution for existing products and plans to launch new titles in international markets in 2019[105]. - The newly launched games, "Miracle MU: Awakening" and "Big Boss 2," contributed significantly to revenue growth, with "Miracle MU: Awakening" achieving CNY 602,647,102.95 in revenue, accounting for 30.67% of game business revenue[56][60]. Financial Management and Investments - The company incurred a total of CNY 763,082,404.85 in operating costs, with a gross margin of 61.27%[63]. - Research and development expenses amounted to ¥465,258,407.43, a 22.75% increase compared to the previous year, representing 22.68% of total revenue[72]. - The company has completed strategic investments in Webzen Inc. with a total of RMB 130 million allocated for this purpose[95]. - The company has a remaining balance of RMB 63,615,975.87 in the special account for raised funds, which has been fully transferred for permanent working capital supplementation[96]. Corporate Governance and Shareholding Structure - The company completed a share transfer where the former controlling shareholder transferred 140,075,010 shares, representing 5.08% of the total share capital, to the chairman[172]. - Following the share transfer, the new ownership structure resulted in the company becoming one without a controlling shareholder[172]. - The company’s shareholding structure saw a significant increase in locked shares totaling 124,952,852 due to various factors including the transfer and performance compensation[179]. - The total number of ordinary shareholders at the end of the reporting period was 185,297, an increase from 180,682 at the end of the previous month[192].

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].