深圳冰川网络股份有限公司 2018 年年度报告全文 深圳冰川网络股份有限公司 2018 年年度报告 2019 年 04 月 1 深圳冰川网络股份有限公司 2018 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整，不存在虚假记载、误导性陈 述或重大遗漏，并承担个别和连带的法律责任。 公司负责人刘和国、主管会计工作负责人董嘉翌及会计机构负责人(会计主管人员)王会声明：保证年度报告中财务报告 的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中所涉及未来的经营计划和经营目标等前瞻性陈述的，并不代表公司的盈利预测，也不构成公司对投资者的实质 承诺，能否实现取决于市场状况变化等多种因素，存在不确定性，投资者及相关人士均应对此保持足够的风险认识，并且应 当理解计划、预测与承诺之间的差异。本公司请投资者认真阅读本年报报告全文，并特别注意下列风险因素。 公司需遵守《深圳证券交易所创业板行业信息披露指引第 5 号——上市公司从事互联网游戏业务》的披露要求 公司特别提醒广大投资者关注以下重大风险： 1、经营业绩进一步下滑风险 随着 ...

Financial Performance - Operating revenue for the reporting period was ¥81,357,055.85, representing a year-on-year increase of 17.90%[8] - Net profit attributable to shareholders was ¥22,994,913.25, up 40.72% from the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥21,881,233.31, an increase of 40.40% year-on-year[8] - Basic earnings per share for the reporting period was ¥0.23, reflecting a growth of 43.75% compared to the previous year[8] - The company reported a 40.37% decrease in cash dividends paid, totaling ¥44,604,027.00[19] - The company distributed a cash dividend of 4 yuan per 10 shares based on a total share capital of 100,000,000 shares as approved in the 2017 annual general meeting[24] - The company reported a total comprehensive income of CNY 22,617,166.84 for Q3 2018, compared to CNY 13,103,213.64 in the same quarter last year, reflecting a growth of 72.5%[40] - The net profit for Q3 2018 reached CNY 70,187,235.15, representing an increase of 13.5% from CNY 61,842,764.44 in Q3 2017[47] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,762,261,611.22, an increase of 1.84% compared to the end of the previous year[8] - The company's total assets reached 1,762,261,611.22 yuan, up from 1,730,352,123.20 yuan at the beginning of the period[32] - The total liabilities remained stable at 221,681,240.40 yuan compared to 217,797,412.96 yuan at the beginning of the period[32] - The equity attributable to the parent company increased to 1,547,598,603.59 yuan from 1,515,942,150.86 yuan, reflecting a growth of about 2.09%[32] - The total assets and owners' equity as of the end of Q3 2018 were CNY 1,788,508,421.14 and CNY 1,567,177,153.75 respectively, showing growth from CNY 1,716,648,628.26 and CNY 1,524,185,078.73 in the previous year[39] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥17,688,955.74, showing a significant increase of 1,558.00%[8] - The net cash flow from operating activities for Q3 2018 was ¥17,688,955.74, a significant increase from ¥1,066,885.20 in Q3 2017, representing a growth of approximately 1,558%[55] - Total cash inflow from operating activities was ¥226,888,742.87, compared to ¥214,880,189.24 in the previous year, indicating a year-over-year increase of about 5.3%[55] - The cash outflow from operating activities decreased to ¥209,199,787.13 from ¥213,813,304.04, showing a reduction of approximately 2.2%[55] - The net cash flow from investing activities was negative at -¥137,180,816.69, contrasting with a positive cash flow of ¥19,873,690.83 in the same period last year[56] - The ending balance of cash and cash equivalents was ¥776,705,612.93, compared to ¥714,152,097.71 at the end of Q3 2017, representing an increase of approximately 8.7%[56] Shareholder Information - The total number of shareholders at the end of the reporting period was 16,490[12] - The largest shareholder, Liu Heguo, holds 43.30% of the shares, with 1,460,000 shares pledged[12] Operational Metrics - The company reported a decrease of 9.60% in year-to-date operating revenue compared to the same period last year, totaling ¥203,344,497.82[8] - Accounts receivable increased by 411.85% to ¥20,161,220.93 due to longer payment terms in mobile gaming business[19] - Prepayments rose by 59.80% to ¥1,794,315.55 primarily due to increased prepayment for advertising services[19] - Financial assets available for sale increased by 74.46% to ¥26,125,000.00 due to new external investments[19] - Other payables surged by 192.22% to ¥46,273,173.32 mainly due to the recognition of estimated liabilities for equity incentives[19] - Other income increased by 497.90% to ¥17,121,179.27 primarily from government subsidies received[19] - Investment income rose by 1727.37% to ¥1,284,363.73 due to received investment dividends[19] - Cash received from operating activities increased by 568.77% to ¥32,577,667.29 mainly from government subsidies and interest income[19] Investment and R&D - The company plans to invest ¥8 million in the New Yu Zhi Bo Wen Entertainment Fund[21] - Research and development expenses for Q3 2018 were CNY 23,421,242.78, slightly down from CNY 24,221,839.67 in Q3 2017[37] - Research and development expenses amounted to CNY 72,029,400.20, slightly down from CNY 72,121,894.86 in the previous year[47] Financial Management - The company has maintained its cash dividend policy without any adjustments or changes during the reporting period[24] - The company has no non-operating fund occupation by controlling shareholders or related parties during the reporting period[26] - The company reported no significant changes in net profit or any non-compliance with external guarantees during the reporting period[25][26]

Revenue and Profit Performance - The company reported a decline in revenue from existing products such as "Yuan Zheng OL" and "Long Wu," leading to concerns about future performance if new products do not meet expectations[5]. - Total revenue for the reporting period was ¥121,987,441.97, a decrease of 21.77% compared to the same period last year[24]. - Net profit attributable to shareholders was ¥46,234,794.05, down 8.45% year-on-year[24]. - Net profit after deducting non-recurring gains and losses was ¥34,751,722.04, a decline of 32.93% compared to the previous year[24]. - The company reported a net profit of CNY 47.84 million for the reporting period, a decrease of 1.71% year-on-year, while the net profit attributable to ordinary shareholders was CNY 46.23 million, down 8.45%[50]. - The company reported a revenue of approximately 4.94 billion RMB for the first half of 2018, reflecting a year-on-year increase of 19%[86]. - The company reported a total revenue of approximately 256 million, representing a year-on-year increase of 44%[87]. - The company reported a net profit margin improvement, indicating better cost management and operational efficiency[86]. Market and Competitive Landscape - The competitive landscape in the Chinese online gaming market is intensifying, with both large and small companies vying for player retention and market share, which may adversely affect the company's performance if it fails to innovate[6]. - The company acknowledges the risk of further declines in operating performance due to increased competition and changing player preferences[5]. - The company is facing significant risks related to market competition, including the potential for losing existing players and the need for continuous development of high-quality games[6]. - The company anticipates a decline in operating performance due to increased competition in the online gaming industry, with existing products experiencing reduced revenue[96]. Product Development and Innovation - The company is actively transitioning from PC games to mobile games, increasing investment in mobile game development, but faces high upfront costs and risks associated with new game launches[8]. - The company is committed to enhancing product-market fit through iterative development and market interaction, although it faces risks if it misjudges player preferences[8]. - The company is actively developing new games, with several projects in various stages, including "鬼谷无双" (not yet released) and "远征手游" (currently in public testing)[35][36]. - New product development is focused on enhancing user engagement, with an expected launch in Q3 2023[85]. - New product developments are underway, focusing on enhancing user experience and expanding service offerings[86]. - The company aims to invest in research and development to innovate and improve existing products[86]. Financial Management and Investment Strategy - The company does not plan to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment[10]. - The company has stated that it will not distribute cash dividends or bonus shares, focusing instead on reinvestment strategies[10]. - The company has implemented a refined compensation structure to attract and retain talented personnel, enhancing its core competitive advantage[47]. - The company has committed to invest a total of 86,050 million CNY in various projects, with a cumulative investment of 14,368 million CNY reported as of the end of the period[77]. - The company has adopted a cautious investment strategy to mitigate risks associated with fundraising projects, leading to discrepancies in project implementation progress[79]. - The company has not engaged in any derivative investments during the reporting period, maintaining a conservative financial strategy[90]. User Engagement and Market Expansion - The company has over 55.8 million registered accounts for its online games, providing a substantial user base for new product launches[44]. - User data indicates a growth rate of 34% in active users compared to the previous year[85]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[85]. - The company is exploring market expansion opportunities, particularly in emerging markets, to drive future growth[86]. - The company is focusing on expanding its market presence through strategic partnerships and collaborations[88]. Operational Efficiency and Cost Management - The company aims to reduce operational costs by 15% through efficiency improvements in the next fiscal year[85]. - The operating cost decreased by 27.65% to CNY 13,358,529.70, primarily due to a reduction in personnel[54]. - The company reported a significant increase in fixed asset investments, amounting to approximately 22 million[87]. - The company has maintained a stable financial position with total assets amounting to CNY 1,761,846,893.87, compared to CNY 1,716,648,628.26 in the previous period[162]. Talent Management and Retention - The company emphasizes the importance of retaining core technical talent to maintain its competitive edge in the rapidly evolving gaming industry[9]. - The company has initiated a restricted stock incentive plan to stabilize and cultivate its talent pool, with the plan registered by July 2018[99]. - The company has identified risks related to core personnel turnover and technology leakage, which are critical for maintaining competitive advantage in the gaming industry[97]. Legal and Compliance - The company has not faced any major litigation or arbitration matters during the reporting period, indicating a stable legal environment[108]. - The company has maintained its commitment to transparency and compliance with regulatory requirements throughout the reporting period[140]. Financial Health and Stability - The company's total equity attributable to shareholders reached CNY 1,522,260,298.42, up from CNY 1,515,942,150.86, indicating a growth of about 0.4%[155]. - The company's cash and cash equivalents increased to CNY 1,159,808,383.74 from CNY 939,143,787.25, representing a growth of approximately 23.5%[152]. - The company has maintained a stable capital structure with no major changes in equity financing[180].

Financial Performance - The company reported a decline in revenue from existing products such as "Yuan Zheng OL" and "Long Wu," leading to concerns about future performance if new product revenues do not meet expectations[5]. - Total revenue for the reporting period was ¥121,987,441.97, a decrease of 21.77% compared to the same period last year[24]. - Net profit attributable to shareholders was ¥46,234,794.05, down 8.45% year-on-year[24]. - Net profit after deducting non-recurring gains and losses was ¥34,751,722.04, a decline of 32.93% compared to the previous year[24]. - The company reported a net profit of ¥4,783,560 for the first half of 2018, a decrease of 1.71% year-on-year[37]. - The company reported a net profit of CNY 47.84 million for the reporting period, a decrease of 1.71% year-on-year, while the net profit attributable to ordinary shareholders was CNY 46.23 million, down 8.45%[50]. - The company reported a total revenue of 20,708 million for client network games, with a growth rate of 16.23%[73]. - The company reported a revenue of 2.00 billion RMB for the first half of 2018, reflecting a year-on-year increase of 22%[80]. - The company reported a revenue of approximately 10.0 billion, representing a year-on-year growth of 44%[81]. - The company reported a comprehensive income total of 56.29 million RMB for the current period, reflecting a decrease of 40.0 million RMB in profit distribution to shareholders[177]. Market Strategy and Competition - The competitive landscape in the Chinese online gaming market is intensifying, with both large and small companies vying for market share, which may impact the company's ability to retain players[6]. - The company has acknowledged the risk of further declines in operating performance due to increased competition and changing player preferences[5]. - The company is focusing on developing new high-quality games to compete effectively in the rapidly changing market[6]. - The company is actively transitioning from PC games to mobile games, increasing investment in mobile game development, which involves significant upfront costs[8]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and diversify its portfolio[78]. - The company is exploring market expansion opportunities in Southeast Asia to increase its user base[81]. - The company is preparing to change the project for internet web game product development due to market conditions[73]. Investment and Financial Management - The company plans to not distribute cash dividends or issue bonus shares, indicating a focus on reinvestment[10]. - The company has established a mature data analysis system to support precise market operations and optimize advertising strategies[41]. - The company has a risk management strategy in place for high-risk entrusted wealth management products, ensuring safety and liquidity[78]. - The company has adopted a cautious fundraising investment strategy to mitigate investment risks and ensure effective use of raised funds[73]. - The company reported a significant increase in bank wealth management products, totaling 260 million CNY[78]. - The company plans to invest 14 million RMB in research and development for new technologies in the upcoming year[80]. Product Development and Innovation - The company is committed to enhancing product-market fit through iterative development and market interaction, despite the inherent risks of new product launches[8]. - The company is actively developing new games, with several projects in various stages, including "鬼谷无双" and "影武者" currently in testing phases[35][36]. - New product development initiatives are underway, aimed at enhancing the company's competitive edge in the market[79]. - The company aims to improve operational efficiency through strategic restructuring and optimization of resources[79]. - The company is enhancing its talent acquisition and incentive mechanisms to attract skilled management and technical personnel, thereby strengthening its competitive advantage[47]. Talent Management and Organizational Structure - The company emphasizes the importance of core technical personnel for innovation and stability, facing risks related to talent retention and potential technology leaks[9]. - The company has initiated the 2018 Restricted Stock Incentive Plan to stabilize its talent pool and ensure continuous talent development, with the plan registered by July 2018[91]. - The company is committed to optimizing its talent structure and enhancing employee performance incentives to support long-term growth[91]. - The company has not encountered any major litigation or arbitration matters during the reporting period, indicating a stable legal environment[100]. Cash Flow and Assets - The net cash flow from operating activities was ¥591,652.32, a significant improvement of 108.99% from a negative cash flow of ¥6,579,812.22 in the previous year[24]. - Cash and cash equivalents increased by 460.92% to ¥220,664,596.49, reflecting changes in cash flow from operating, financing, and investing activities[55]. - The company’s total assets at the end of the reporting period were ¥1,737,939,057.99, reflecting a slight increase of 0.44% from the end of the previous year[24]. - The company’s cash flow from sales of goods and services was 101,892,715.53 RMB, down from 131,411,786.44 RMB in the previous year[166]. Future Outlook - The company has not provided specific financial forecasts, highlighting the uncertainty in achieving future operational goals[5]. - The company provided a future outlook, projecting a revenue growth of 15% for the next fiscal year[80]. - Future guidance indicates an expected revenue growth rate of approximately 4.60% for the upcoming quarters[79]. - The company aims to increase its marketing budget by 10% to boost brand awareness and user acquisition[80].

Financial Performance - Total revenue for Q1 2018 was ¥58,776,976.41, a decrease of 26.93% compared to ¥80,439,362.52 in the same period last year[9] - Net profit attributable to shareholders was ¥18,680,051.70, down 37.46% from ¥29,866,923.94 year-on-year[9] - The net profit after deducting non-recurring gains and losses was ¥16,365,963.68, reflecting a decline of 42.99% compared to ¥28,705,735.69 in the previous year[9] - Basic earnings per share decreased to ¥0.19, down 36.67% from ¥0.30 in the same period last year[9] - The weighted average return on net assets was 1.22%, down from 1.99% year-on-year, a decrease of 0.77%[9] - The company achieved operating revenue of 58.77 million yuan, a decrease of 26.93% compared to the same period last year[26] - Net profit for the period was 18.86 million yuan, down 35.56% year-on-year, with net profit attributable to shareholders decreasing by 37.46% to 18.68 million yuan[26] - The decline in revenue is primarily due to the rise of the mobile gaming market, which has significantly impacted the client game market, leading to a decrease in market share[26] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,724,028,654.09, a slight decrease of 0.37% from ¥1,730,352,123.20 at the end of the previous year[9] - The net assets attributable to shareholders increased to ¥1,534,373,170.09, up 1.22% from ¥1,515,942,150.86 at the end of the previous year[9] - The company's total liabilities decreased by 136.35% in minority interests, reflecting a reduction in retained earnings of non-wholly owned subsidiaries[23] - Total liabilities at the end of the period were CNY 197,661,825.80, a decrease from CNY 217,797,412.96 in the previous period[65] Cash Flow and Investments - Cash received from other operating activities increased by 748.42% to ¥7,723,151.23, mainly from bank deposit interest and government subsidies[24] - Cash received from investment income rose by 92.40% to ¥5,257,479.45, primarily due to interest from matured financial products[24] - Cash paid for investment activities decreased by 36.56% to ¥9,500,000.00, indicating a reduction in external investments compared to the previous period[24] - The company reported a total cash inflow from operating activities of 63,842,491.86 CNY, slightly down from 64,402,071.86 CNY in the previous period[80] - The cash outflow for employee payments was 44,825,678.23 CNY, compared to 42,656,305.11 CNY in the previous period, reflecting an increase of about 5%[80] Strategic Initiatives - The company plans to enhance its game products and services, focusing on mobile game development to adapt to market demand changes[14] - The company aims to improve employee performance incentives and talent retention strategies to ensure long-term stability and growth[15] - The company plans to enhance mobile game product development and operations, aiming to create new growth points and diversify its product offerings[27] - The company aims to strengthen core technology innovation by increasing R&D investment and expanding its R&D team to enhance its technical capabilities[29] - A large data management center will be established to improve data analysis capabilities and provide personalized services based on user behavior analysis[29] - The company will actively seek strategic investment opportunities and potential mergers to achieve rapid development and enhance capital operation efficiency[30] Market and Competition - The company faces risks including declining operating performance and intense market competition, necessitating continuous innovation and product development[12] - The company faces risks of further performance decline due to increased competition in the online gaming industry, with existing products experiencing reduced revenue and player engagement[35] - The company is actively improving operational efficiency to address the risk of declining client game recharge, focusing on enhancing mobile game R&D and operational capabilities[34] Shareholder and Dividend Policies - The company reaffirmed its commitment to maintaining a dividend payout ratio of 30% of net income for the fiscal year[44] - The company reported a commitment to ensure that cash dividends per share will not be lower than the level of the previous year before listing, with a focus on maintaining stable cash dividend policies[51] - The company has committed to ensuring that any share capital adjustments will result in corresponding adjustments to cash dividend levels[52] Compliance and Governance - The company is focused on maintaining compliance with legal and regulatory requirements in its operations and financial reporting[52] - The company has not reported any violations of commitments related to executive compensation and management practices[52] - The company has established a commitment to compensate investors for losses incurred due to any misleading statements or omissions in its prospectus[50]

Financial Performance - The company's total revenue for 2017 was ¥296,257,927.30, a decrease of 22.18% compared to ¥380,679,133.45 in 2016[20]. - Net profit attributable to shareholders was ¥97,021,020.06, down 37.59% from ¥155,464,046.01 in the previous year[20]. - The net cash flow from operating activities was ¥21,998,252.47, a significant decline of 79.87% compared to ¥109,255,046.94 in 2016[20]. - The total assets at the end of 2017 were ¥1,730,352,123.20, a slight decrease of 0.50% from ¥1,739,049,851.62 in 2016[20]. - The basic earnings per share decreased by 48.13% to ¥0.97 from ¥1.87 in 2016[20]. - The weighted average return on equity was 6.48%, down from 18.56% in the previous year[20]. - The company reported a total revenue of ¥296,257,927.30, a decrease of 22.18% compared to ¥380,679,133.45 in the previous year[58]. - The net profit for the same period was 90.74 million yuan, down 42.49% year-on-year, while the net profit attributable to ordinary shareholders was 97.02 million yuan, a decrease of 37.59%[36]. Market Competition and Risks - The company faces risks of declining operating performance due to increased competition in the online gaming industry, with existing products like "Yuan Zheng OL" and "Long Wu" experiencing longer operating cycles and declining revenue[6]. - The company acknowledges the risk of new product marketability, as player preferences are constantly changing, which could impact the success of new game launches[8]. - The company is subject to market competition risks from both large and small gaming companies, which may affect its ability to retain existing players[7]. - The company faces risks of declining operating performance due to increased competition and potential revenue drops from existing products[104]. Research and Development - The company is committed to continuous R&D investment to enhance existing games and develop new content, but the high cost of trial and error in game development poses a financial risk[8]. - The proportion of research and development personnel in the company is 68.03%, indicating a strong focus on innovation and product development[43]. - Research and development expenses amounted to ¥10,293,22, representing 34.74% of total revenue, an increase of 20.07% year-on-year[50]. - The company is actively investing in mobile game development, with "远征手游" having commenced testing in July 2017 and "龙武手游" having completed project initiation[51]. Mobile Gaming Transition - The company is transitioning from PC games to mobile games, increasing investment and resource allocation, but faces intense competition in the mobile gaming market[8]. - The mobile game market in China saw actual sales revenue of 116.12 billion yuan, accounting for 57.0% of the total market, with a year-on-year growth of 41.7%[37]. - The mobile gaming market is expected to remain a major development direction, driven by rising consumer spending capacity[38]. - The company is actively expanding into the mobile gaming sector, enhancing its product variety and industry layout[36]. Shareholder and Dividend Policies - The company reported a cash dividend of 4.00 RMB per 10 shares (including tax) based on a total share capital of 100,000,000 shares as of December 31, 2017[9]. - The cash dividend represents 41.23% of the net profit attributable to ordinary shareholders, which is 97,021,020.06 yuan for 2017[121]. - The company ensures that cash dividends distributed each year will not be less than 20% of the distributable profits[112]. - The total distributable profit for 2017 was 486,154,439.66 yuan, with cash dividends accounting for 100% of the profit distribution[116]. Strategic Initiatives and Future Outlook - The company plans to enhance mobile game development and operations, focusing on leveraging existing IP advantages from popular titles[100]. - The company aims to improve operational efficiency and respond to declining client game recharge rates by extending product life cycles[101]. - The company plans to enhance its marketing strategy, increasing the budget by 15% to boost brand awareness and user acquisition[163]. - The company provided a revenue guidance for 2018, projecting an increase of 25% compared to 2017, aiming for approximately 3.25 billion RMB[163]. Acquisitions and Investments - The company acquired Shenzhen Dahui Investment Co., Ltd. and established Hainan Ice Glacier Network Technology Co., Ltd., increasing the number of consolidated entities to 7[65]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand its product offerings, with a budget of 500 million RMB allocated for this purpose[134]. - A strategic acquisition was announced, aimed at enhancing the company's capabilities in the digital finance sector[166]. Compliance and Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management, ensuring accountability for any misrepresentation[5]. - The company has ensured compliance with legal regulations regarding the use and disclosure of raised funds, with no violations reported[90]. - The company has committed to ensuring compliance with legal and regulatory requirements to avoid any financial risks[136]. User Engagement and Data Management - The number of registered accounts for the company's online games exceeded 53 million, providing a substantial user base for new product launches[44]. - The company reported a significant increase in user data, with a total of 10 million active users by the end of 2017, representing a 25% year-over-year growth[132]. - User data showed a growth rate of 27% in active users compared to the previous year[165]. - The company aims to enhance customer retention, targeting a 58% improvement in customer loyalty metrics[167].

Financial Performance - Operating revenue for the reporting period was CNY 69,005,445.93, down 27.38% year-on-year[8] - Net profit attributable to shareholders was CNY 16,341,143.26, a decline of 38.59% compared to the same period last year[8] - Basic earnings per share decreased by 50.00% to CNY 0.16[8] - The weighted average return on net assets was 1.11%, down 2.33% from the previous year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 15,584,845.40, down 38.76% year-on-year[8] - Total operating revenue for the period was CNY 69,005,445.93, a decrease from CNY 95,022,351.52 in the previous period[41] - Net profit attributable to the parent company was CNY 16,341,143.26, compared to CNY 26,609,466.82 in the previous period, reflecting a decline of approximately 38.5%[43] - The company reported a total comprehensive income of CNY 13,103,213.64, compared to CNY 27,134,091.20 in the prior period[43] - The total comprehensive income for the current period is 25,687,390.69, compared to 24,719,734.94 in the previous period[46] - Total comprehensive income for the period was CNY 95,752,844.36, compared to CNY 107,552,916.89 in the previous period, indicating a decrease of approximately 10.5%[54] Cash Flow - Cash flow from operating activities showed a significant decline of 98.73%, totaling CNY 1,066,885.20 for the year-to-date[8] - Net cash flow from operating activities was CNY 1,066,885.20, a significant decline from CNY 84,079,778.49 in the previous period, representing a decrease of approximately 98.7%[57] - Cash inflow from operating activities totaled CNY 214,880,189.24, down from CNY 289,583,188.39, reflecting a decrease of about 26%[57] - Cash outflow from operating activities was CNY 213,813,304.04, slightly higher than CNY 205,503,409.90 in the previous period, showing an increase of approximately 4.4%[57] - Cash flow from investment activities generated a net inflow of CNY 19,873,690.83, a recovery from a net outflow of CNY 543,575,543.84 in the previous period[58] - Total cash inflow from investment activities was CNY 2,109,346,071.84, compared to CNY 191,617,610.16 in the previous period, indicating a substantial increase[58] - Total cash outflow from investment activities reached CNY 2,089,472,381.01, significantly higher than CNY 735,193,154.00 in the previous period[58] - Net cash flow from financing activities was CNY -74,800,000.00, a decrease from CNY 868,598,767.00 in the previous period, indicating a shift towards cash outflow[58] - The ending balance of cash and cash equivalents was CNY 714,152,097.71, down from CNY 876,872,533.85 in the previous period, reflecting a decrease of approximately 18.5%[58] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,683,402,774.57, a decrease of 3.20% compared to the end of the previous year[8] - The company's cash and cash equivalents increased by 30.38% to CNY 1,214,152,097.71, primarily due to the maturity of cash management products[19] - Accounts receivable rose by 46.44% to CNY 2,725,198.84, mainly due to an increase in recharge settlement amounts[19] - Prepayments decreased by 34.46% to CNY 1,666,308.37, primarily due to a reduction in prepaid advertising service fees[19] - The company's intangible assets increased by 87.07% to CNY 2,118,307.95, mainly due to the addition of new intangible assets[19] - The company's total liabilities increased by 114.05% in accounts payable, reaching CNY 438,092.08, primarily due to increased network service fees and server hosting fees[19] - The total current assets as of September 30, 2017, amounted to 1,647,034,447.26 yuan, a decrease from 1,716,621,975.81 yuan at the beginning of the period[33] - The company's total assets decreased to CNY 1,677,264,817.44 from CNY 1,695,368,014.60 at the beginning of the period[39] - Current assets totaled CNY 1,628,944,777.90, slightly down from CNY 1,659,727,621.95 at the start of the period[38] - Current liabilities decreased to CNY 186,903,409.49 from CNY 230,759,451.01, indicating a reduction of approximately 19%[39] Shareholder Information - The company reported a total of 17,462 common shareholders at the end of the reporting period[12] - The largest shareholder, Liu Heguo, holds 43.84% of the shares, totaling 43,839,225 shares[12] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[13] - The company distributed a cash dividend of 7 yuan per 10 shares to all shareholders, based on a total share capital of 100 million shares as of December 31, 2016[26] Investments and Contracts - The company invested CNY 997.5 million to acquire 285,000 shares in Shenzhen Aiwang Network Technology Co., Ltd. to expand its board game business[21] - The company signed a framework contract with Beijing Qixin Interactive Technology Co., Ltd. for network information services, which is progressing smoothly as of the report date[22] - A framework contract was also signed with Ruisheng Advertising (Beijing) Co., Ltd. for purchasing information services and account recharge services, with ongoing progress reported[23] - The company established a wholly-owned subsidiary in Hainan with a registered capital of 5 million yuan, aimed at enhancing its industry layout[23] Cost Management - The company plans to continue focusing on cost reduction and efficiency improvements in future quarters[50] - The company reported a significant reduction in sales expenses, which decreased to 12,222,470.00 from 38,472,797.46, a drop of approximately 68%[45] - Financial expenses showed a negative value of -8,983,715.09, indicating a reduction in costs compared to -6,888,228.53 in the previous period[45] - The tax expense decreased to 3,261,980.69 from 4,362,306.17, representing a reduction of about 25%[45] Audit Information - The company did not conduct an audit for the third quarter report[63]

Financial Performance - Total revenue for the first half of 2017 was ¥155,927,635.83, a decrease of 18.53% compared to the same period last year[24]. - Net profit attributable to shareholders was ¥50,503,836.18, down 43.08% year-on-year[24]. - The net cash flow from operating activities was negative at -¥6,579,812.22, a decline of 111.91% compared to the previous year[24]. - The company achieved operating revenue of CNY 155.93 million, a decrease of 18.53% compared to the same period last year[44]. - Net profit for the period was CNY 48.67 million, down 46.11% year-on-year, with net profit attributable to ordinary shareholders decreasing by 43.08% to CNY 50.50 million[44]. - The total comprehensive income for the period was CNY 70,065,453.67, compared to CNY 82,833,181.95 in the previous period, reflecting a decrease of approximately 15.5%[146]. - The company reported a total comprehensive income of 146.36 million yuan for the current period, reflecting a significant increase compared to the previous period[166]. Revenue Sources - The average revenue from self-operated sales accounted for over 95% of the company's total income, highlighting the importance of this operational model[8]. - The main products, including "Yuan Zheng OL," "Long Wu," and "Bu Bai Chuan Shuo," generated a total revenue of ¥150,356,100, accounting for 96.43% of total revenue[31]. - "Yuan Zheng OL" achieved revenue of ¥5,943.45 million, representing 38.12% of total revenue[31]. - "Long Wu" generated revenue of ¥6,937.55 million, making up 44.49% of total revenue[32]. - Revenue from "Expedition OL" was 59,434,514.25 with a year-over-year decrease of 27.88% and a gross margin of 87.77%, down 4.00% from the previous year[50]. - Revenue from "Dragon Martial" was 69,375,468.40, reflecting a year-over-year decrease of 30.13% and a gross margin of 91.46%, down 2.15% from the previous year[50]. - Revenue from "Unbeaten Legend" surged to 21,546,086.68, marking a significant year-over-year increase of 374.66% with a gross margin of 86.71%, up 7.15% from the previous year[50]. Market Trends and Competition - The gaming industry is experiencing rapid diversification, particularly with the growth of mobile games, which is impacting the client game market and increasing competition[5]. - The mobile game market in China saw a revenue increase of 49.8%, reaching ¥561.4 billion in the first half of 2017[35]. - The client game market revenue was ¥319.5 billion, showing a year-on-year growth of 13.7%[35]. - The company anticipates risks related to declining operating performance due to increased competition and changing player preferences in the gaming market[77]. - The company faces new product marketability risks, as the success of new games heavily depends on accurately predicting player preferences and market demand[78]. Investment and Development - The company plans to invest heavily in new game development, which includes significant upfront costs for R&D and server purchases, indicating a high trial-and-error cost[7]. - The company is actively developing new products, with several projects in testing phases, including "Gui Gu Wu Shuang" and "Ying Wu Zhe"[32]. - Research and development expenses amounted to CNY 47.90 million, representing 30.72% of operating revenue, an increase of 28.27% compared to the previous year[41]. - The company has made significant investments in intangible assets, primarily for newly added R&D and office software[36]. - The company plans to expand its mobile game product layout and enhance user experience through continuous innovation and high-quality game development[81]. Operational Challenges - The company reported a significant increase in management expenses by 25.43% to CNY 59.31 million, primarily due to increased R&D investments[48]. - Cash flow from operating activities showed a net decrease of 111.91%, primarily due to rising personnel costs[48]. - The company acknowledges the risk of operational performance decline due to increased competition and changing market demands[5]. - The company faces risks related to core personnel turnover and technology leakage, which are critical in the competitive gaming industry[80]. Governance and Compliance - The company is committed to adhering to the disclosure requirements set by the Shenzhen Stock Exchange for internet gaming businesses[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[4]. - The company has ensured compliance with legal regulations regarding the use and disclosure of raised funds, with no violations reported[66]. Shareholder Information - The total number of shareholders at the end of the reporting period is 18,956[116]. - Liu Heguo holds 43.84% of the shares, totaling 43,839,225 shares[116]. - The total number of shares is 100,000,000, with 75% being limited sale shares[114]. - The company has a total of 25,000,000 unrestricted shares, representing 25% of total shares[114]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming quarters[156]. - Future guidance indicates a cautious outlook with expectations of gradual recovery in market conditions[161]. - The company is focusing on improving operational efficiency to mitigate losses and enhance profitability in the future[161].

Financial Performance - Total revenue for Q1 2017 was ¥80,439,362.52, a decrease of 18.01% compared to ¥98,113,037.40 in the same period last year[7] - Net profit attributable to shareholders was ¥29,866,923.94, down 33.18% from ¥44,694,745.33 year-on-year[7] - Basic earnings per share decreased by 50.00% to ¥0.30 from ¥0.60 in the previous year[7] - The weighted average return on equity dropped to 1.99% from 9.02% year-on-year, a decrease of 7.03%[7] - The company achieved operating revenue of 80.44 million yuan, a decrease of 18.01% year-on-year, and a net profit of 29.27 million yuan, down 36.19% year-on-year[23] - The company reported a total comprehensive income of CNY 29,232,218.99 for Q1 2017, compared to CNY 45,839,304.40 in the previous year[65] - The total comprehensive income for the first quarter was CNY 46,442,071.15, an increase from CNY 40,483,143.83 in the previous period, representing a growth of approximately 4.8%[69] Cash Flow and Assets - Net cash flow from operating activities was negative at -¥5,238,431.02, a decline of 120.87% compared to ¥25,094,295.14 in the same period last year[7] - Cash inflow from operating activities totaled CNY 64,402,071.86, down from CNY 90,832,264.76 in the previous period, indicating a decline of about 29%[71] - The cash and cash equivalents at the end of the period amounted to CNY 778,563,732.48, up from CNY 524,653,684.50 at the end of the previous period, reflecting an increase of approximately 48.5%[73] - The company’s cash outflow for employee payments was CNY 42,656,305.11, an increase from CNY 34,036,481.30 in the previous period, indicating a rise of approximately 25%[72] - The total amount of raised funds for the quarter was 86,050.66 million, with an investment of 1,425.6 million during the reporting period[41] - The cumulative amount of raised funds invested reached 8,469.38 million, with a utilization rate of 9.19% for the client network game product development project[41] Investments and Future Plans - The company plans to focus on client-based network games while expanding into mobile games, increasing R&D investment in mobile gaming[10] - The company aims to enhance game quality and user experience through continuous innovation and talent acquisition[10] - The company is actively increasing investment in mobile game development and improving data management systems to enhance data analysis capabilities[28] - The company plans to shift its focus from client game development to mobile game products, enhancing game quality and user experience[25] - The company is considering strategic acquisitions to enhance its market position, with a budget of 50 million yuan allocated for potential deals[39] - The company plans to implement a share repurchase plan if the stock price falls below the audited net asset value per share for three consecutive trading days[37] Shareholder and Governance - The company reported a commitment to maintain a stable cash dividend plan, ensuring that the cash dividend per share will not be lower than the previous year's level if the basic earnings per share fall below the prior year's level[36] - The company has committed to improving operational efficiency, targeting a 10% reduction in costs by the end of the fiscal year[39] - The company will improve talent acquisition strategies by offering better compensation to attract top industry talent, ensuring a stable workforce for ongoing growth[33] - The company aims to enhance its corporate governance structure to ensure smooth implementation of business plans and operational efficiency[33] - The company has not engaged in any business activities that may constitute competition with its own operations during the reporting period[37] Market Trends - The average annual compound growth rate of the Chinese gaming market has slowed but continues to grow, with the user base reaching 566 million, a year-on-year increase of 5.9%[24] - The mobile gaming market has surpassed the client game market for the first time, leading to a structural adjustment in the industry and presenting both opportunities and challenges for the company[24] - The company faces risks from declining performance due to increased competition in the mobile gaming market and the need for continuous product innovation[30][31]

Financial Performance - The company's operating revenue for 2016 was CNY 380,679,133.45, representing a 2.92% increase compared to CNY 369,882,203.07 in 2015[24]. - The net profit attributable to shareholders for 2016 was CNY 155,464,046.01, a decrease of 9.38% from CNY 171,549,157.96 in 2015[24]. - The net cash flow from operating activities decreased by 36.85% to CNY 109,255,046.94 in 2016 from CNY 173,015,724.82 in 2015[24]. - The total assets at the end of 2016 were CNY 1,739,049,851.62, a significant increase of 129.23% from CNY 758,657,461.01 at the end of 2015[24]. - The net assets attributable to shareholders increased by 214.93% to CNY 1,489,328,951.42 at the end of 2016 from CNY 472,909,752.55 at the end of 2015[24]. - The basic earnings per share for 2016 was CNY 1.87, down 18.34% from CNY 2.29 in 2015[24]. - The weighted average return on equity decreased to 18.56% in 2016 from 38.71% in 2015, a decline of 20.15%[24]. - The company reported a total of CNY 8,195,873.14 in non-recurring gains for 2016, compared to CNY 3,084,035.73 in 2015[30]. - The company achieved a total revenue of RMB 380.68 million in 2016, representing a year-on-year growth of 2.92%[40]. - The net profit for the year was RMB 157.78 million, a decrease of 10.28% compared to the previous year[40]. Market and Competition - The company faced risks of declining operating performance due to increased competition in the client game market and a shift towards mobile games, leading to a decrease in revenue from mature products[6]. - The company acknowledged the risk of market competition intensifying as both existing and new entrants increase their investment in R&D and marketing[7]. - The company emphasized the need for continuous development of high-quality network games to meet growing user demands and maintain market share[7]. - The gaming market in China reached RMB 165.57 billion in 2016, with a year-on-year growth of 17.7%[41]. - The mobile gaming segment grew significantly, achieving RMB 81.92 billion in revenue, a 59.2% increase, and accounting for 49.5% of the market share[41]. - The revenue from client games decreased by 4.8% year-on-year, totaling RMB 58.25 billion[90]. Product Development and Innovation - The company launched new client network games, including "Unbeaten Legend" and "Shadow Warrior," during the reporting period, aiming to enhance its product portfolio[17]. - The company has several new products in development, including "Da Guo" and "Gui Gu Wu Shuang," which are currently in internal testing stages[39]. - The company plans to enhance its mobile game development efforts and expand its product offerings to adapt to the evolving market[53]. - The company is focused on continuous product innovation and technical upgrades to strengthen its competitive position in the gaming industry[53]. - The company plans to invest in mobile game development to diversify its product offerings and strengthen its market position[102]. Shareholder Returns and Dividends - The company reported a profit distribution plan of 7.00 RMB per 10 shares (including tax) based on a total share capital of 100,000,000 shares as of December 31, 2016[12]. - The cash dividend accounted for 100% of the total distributable profit of 459,133,419.60 yuan[106]. - In the past three years, the cash dividends were 63,000,000 yuan in 2014, 35,000,000 yuan in 2015, and 70,000,000 yuan in 2016, representing 39.97%, 20.40%, and 45.03% of the net profit respectively[110]. - The cash dividend for 2016 is subject to approval at the shareholders' meeting[107]. - The company has maintained a consistent cash dividend policy over the past three years without any capital reserve conversions[108]. Operational Risks and Management - The company is exposed to operational risks related to product updates and marketing effectiveness, which could impact overall performance if not managed properly[9]. - The company highlighted the importance of retaining core technical personnel to sustain its competitive advantage in the rapidly evolving gaming industry[10]. - The company is committed to adhering to the disclosure requirements set by the Shenzhen Stock Exchange regarding its internet gaming business[5]. - The company has established a comprehensive R&D organizational system to enhance innovation and protect intellectual property[71]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[126]. Employee and Management Structure - The company employed a total of 777 staff, including 488 R&D personnel, 200 operations staff, and 56 sales staff[184]. - The number of employees with a bachelor's degree or above reached 430, representing approximately 55.3% of the total workforce[184]. - The management team includes professionals with diverse backgrounds, including finance, law, and IT, enhancing the company's strategic capabilities[176][177][178]. - Total remuneration for directors and senior management during the reporting period amounted to CNY 5.1692 million[183]. - The company has established a comprehensive training management mechanism to enhance employee skills and career development[186]. Compliance and Governance - The company ensures timely and accurate information disclosure, complying with relevant regulations to maintain transparency with investors[191]. - The company maintains complete independence in asset ownership, with no guarantees provided to shareholders, ensuring full control over all assets[193]. - The company has established an independent financial department and accounting system, with no shared bank accounts with controlling shareholders[196]. - The board of directors consists of 7 members, including 3 independent directors, in accordance with legal requirements[190]. - The company has not faced any penalties from securities regulatory authorities in the past three years, indicating a clean compliance record[181].