富春股份(300299) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides an important notice, the report's table of contents, and definitions of key terms for clarity Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[2] - Company负责人缪福章 (Miao Fuzhang), Chief Accountant林梅 (Lin Mei), and Head of Accounting Department林梅 (Lin Mei) declare the financial report is true, accurate, and complete[2] - The report highlights risks such as market competition, industry regulatory policies, intellectual property, game product life cycles, and new game development and operation failures[2] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[2] Table of Contents This section lists the report's structure, including important notices, company profile, MD&A, corporate governance, ESG, significant matters, share changes, preferred shares, bonds, and financial reports Definitions This section defines common terms used in the report, including company names, subsidiaries, regulatory bodies, and technical terms, to ensure clear understanding - The reporting period refers to January 1, 2024, to June 30, 2024[5] - Key company entities such as Fuchun Co., Fuchun Investment, and Shanghai Junmeng are defined[5] - Technical terms like VR, AR, MR, XR, IP, 5G, 6G, AI, and AIGC are explained[5] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and its key financial performance during the reporting period Company Profile The company, Fuchun Co., stock code 300299, is listed on the Shenzhen Stock Exchange, with Miao Fuzhang as its legal representative Company Basic Information | Indicator | Content | | :--------------- | :--------------------- | | Stock Abbreviation | Fuchun Co. | | Stock Code | 300299 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Miao Fuzhang | Contact Person and Information The company's Board Secretary is Lin Jianping, with contact details including address, phone, fax, and email provided Contact Information | Position | Name | | :--------------- | :----------- | | Board Secretary | Lin Jianping | | Phone | 0591-83992010 | | Fax | 0591-83920667 | | Email | fuchungroup@fuchun.com | Other Information During the reporting period, there were no changes in the company's contact information, information disclosure, or registration details - The company's registered address, office address, website, and email remained unchanged during the reporting period[8] - Information disclosure and archiving locations remained unchanged during the reporting period[9] - The company's registration status remained unchanged during the reporting period[10] Key Accounting Data and Financial Indicators During the reporting period, operating revenue decreased by 38.93% to 110 million yuan, net profit attributable to shareholders was -32.9234 million yuan, and operating cash flow significantly improved Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Period (Yuan) | Prior Year (Yuan) | YoY Change | | :-------------------------------------- | :-------------------- | :---------------- | :--------- | | Operating Revenue | 110,454,908.26 | 180,875,800.66 | -38.93% | | Net Profit Attributable to Shareholders | -32,923,446.96 | 17,083,549.55 | -292.72% | | Net Cash Flow from Operating Activities | -482,326.08 | -8,315,479.52 | 94.20% | | Basic Earnings Per Share (Yuan/Share) | -0.0476 | 0.0247 | -292.71% | | Diluted Earnings Per Share (Yuan/Share) | -0.0476 | 0.0247 | -292.71% | | Weighted Average Return on Net Assets | -5.85% | 2.95% | -8.80% | Key Accounting Data and Financial Indicators (Period-End) | Indicator | Current Period-End (Yuan) | Prior Year-End (Yuan) | Period-End vs. Prior Year-End Change | | :-------------------------------------- | :------------------------ | :-------------------- | :----------------------------------- | | Total Assets | 1,035,099,556.04 | 1,037,735,296.50 | -0.25% | | Net Assets Attributable to Shareholders | 547,780,498.71 | 579,564,278.86 | -5.48% | Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under international/overseas accounting standards and Chinese accounting standards - The company had no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[12] - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[12] Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 1.9268 million yuan, primarily from non-current asset disposals, government grants, and other non-operating items Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :---------------------------------------------------------------------------------------------------------------------------------- | :------------ | | Gains and losses from disposal of non-current assets (including the reversal of impairment provisions already made) | 35,453.43 | | Government grants recognized in current profit or loss (excluding those closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and with a sustained impact on the company's profit or loss) | 190,737.12 | | Fund occupation fees collected from non-financial enterprises recognized in current profit or loss | 1,025,841.01 | | Other non-operating income and expenses apart from the above items | 2,203,083.61 | | Other profit and loss items that meet the definition of non-recurring gains and losses | -692,955.63 | | Less: Income tax impact | 330,673.57 | | Impact on minority interests (after tax) | 504,640.65 | | Total | 1,926,845.32 | - The company has no other specific items that meet the definition of non-recurring gains and losses[14] - The company has not classified non-recurring gains and losses listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public—Non-Recurring Gains and Losses" as recurring gains and losses[14] Management Discussion and Analysis This section analyzes the company's main business activities, core competencies, and financial performance during the reporting period, along with risks and countermeasures Main Business Activities During the Reporting Period The company's main business is "Digital Culture + Communication and Information," focusing on mobile game R&D and IP operations, and providing communication technology services and smart engineering solutions - The company's principal business is "Digital Culture + Communication and Information," adhering to the value of "Achieving Others, Achieving Oneself"[15] - The digital culture business primarily involves mobile game R&D and IP operations, following a "boutique R&D + renowned IP" strategy, deeply cultivating overseas markets, and integrating VR/AR and AI technologies[15] - The communication and information business, based on communication technology services and informatization project feasibility planning, is transforming into a multi-level digital empowerment comprehensive provider for information system engineering, data center construction, and government/enterprise private network services[15] Digital Culture Business In H1 2024, China's game market revenue grew by 2.08% to 147.267 billion yuan, with user scale reaching 674 million, and the company actively leverages AIGC technology 2024 H1 China Game Industry Data | Indicator | Amount/Quantity | YoY Change | | :------------------------------- | :------------------ | :--------- | | Domestic Game Market Actual Sales Revenue | 147.267 billion yuan | 2.08% | | Game User Scale | 674 million people | 0.88% | | Overseas Sales Revenue of Self-Developed Games | 8.554 billion USD | 4.24% | - The company's digital culture business primarily uses mobile games, adheres to a high-quality overseas development path, and owns excellent IPs such as "Ragnarok Online," "Gujian Qitan 3," and "Qin's Moon"[16][17] - Actively promotes the application of AIGC technology in game R&D to reduce costs, increase efficiency, and potentially foster richer game categories[16] Communication and Information Industry By H1 2024, China's 5G network infrastructure continued to advance, with 927 million 5G mobile phone users and 3.917 million base stations, as the company expands its smart engineering solutions - As of the end of June 2024, China's 5G mobile phone users reached 927 million, with a cumulative total of 3.917 million 5G base stations built[18] - The company continues to provide planning and design services for communication infrastructure, including wireless networks, core networks, IP networks, transmission networks, and access networks, for operators and government/enterprise clients in 5G construction[19] - The company actively participates in smart engineering construction, with its "Smart+" business extending across most provinces and cities in China, committed to providing digital empowerment and other smart solutions[19] Analysis of Core Competencies The company's core competencies include a clear "Digital Culture + Communication and Information" strategic layout, IP operation and integrated R&D/operation advantages in mobile games, deep industry accumulation and quality client resources in communication and information, and the integration of party building with corporate culture - The company has a clear strategic layout, aiming to become a respected cultural technology company, with the communication and information segment undertaking new infrastructure informatization and digitalization businesses, and the mobile game segment leveraging its high-quality R&D and overseas experience[20] - The mobile game segment owns numerous excellent IPs such as "Ragnarok Online," "Gujian Qitan 3," "Qin's Moon," and "Dragon Raja," possessing rich IP operation, R&D experience, and successful products[21] - The communication and information segment, as a leading private enterprise in the industry, holds multiple qualifications including Class A for consulting, design, and surveying, serving communication operators, government, public security, hospitals, and other clients across most provinces and cities in China[22] - The company integrates party building into corporate governance and culture, with "Achieving Others, Achieving Oneself" as its core value, enhancing cohesion and promoting high-quality development through activities like "Joyful Reading, Happy Running"[23] Analysis of Principal Business During the reporting period, the company's operating revenue decreased by 38.93% to 110 million yuan, with a net loss of 32.9234 million yuan, mainly due to delayed game launches and communication business optimization - During the reporting period, the company's operating revenue was 110.4549 million yuan, a year-on-year decrease of 38.93%; net profit attributable to shareholders was -32.9234 million yuan[24] - The decline in performance was primarily due to delayed game project launches and optimization of the communication and information business[24] - The company continues to optimize its business structure, strengthen refined management, and actively expand its business to prepare for performance growth in the second half of the year and next year[24] Mobile Game Business: Actively Preparing for RO China Server and Multiple Mini-Game Launches in H2 Subsidiary Shanghai Junmeng achieved 66.9421 million yuan in operating revenue, with "Ragnarok Online: New Generation" generating over 300 million yuan in overseas revenue in H1, while the company also develops mini-games and utilizes AIGC technology - Subsidiary Shanghai Junmeng achieved operating revenue of 66.9421 million yuan[25] - The self-developed product "Ragnarok Online: New Generation" generated over 300 million yuan in overseas revenue in the first half of the year, and the company is actively promoting its launch in mainland China, Japan, Europe, and America[25][26] - The company has established a mini-game operation team and completed the project initiation or signing of multiple self-developed, outsourced, and agency mini-game products[26] - Leveraging the AIGC R&D team, the company continues to apply AIGC tools in game R&D for art and code, achieving cost reduction and efficiency improvement[26] Communication and Information Business: Continuously Consolidating and Expanding Business Scale During the reporting period, the company's communication and information business generated 46.6588 million yuan in operating revenue, with efforts to optimize, expand market presence, and explore new opportunities in industrial digitalization - During the reporting period, the company's communication and information business achieved operating revenue of 46.6588 million yuan[27] - In the first half of the year, the company streamlined and optimized this business, strengthening market personnel allocation and market expansion efforts[27] - The company continues to explore opportunities brought by industrial digitalization and industrial internet, actively participates in new infrastructure construction, and is committed to providing digital empowerment and other smart solutions[27] Year-on-Year Changes in Key Financial Data Operating revenue decreased by 38.93% due to declining game and communication business, while income tax expense significantly increased by 1058.50% due to deferred tax asset accrual, and operating cash flow improved by 94.20% from advance game revenue Key Financial Data Year-on-Year Changes | Indicator | Current Period (Yuan) | Prior Year (Yuan) | YoY Change | Reason for Change | | :-------------------------------------- | :-------------------- | :---------------- | :--------- | :-------------------------------------------------- | | Operating Revenue | 110,454,908.26 | 180,875,800.66 | -38.93% | Mainly due to a certain degree of decline in game and communication business revenue | | Operating Cost | 80,290,976.52 | 99,463,226.30 | -19.28% | | | Income Tax Expense | -4,817,254.87 | -415,816.70 | -1,058.50% | Mainly due to the accrual of deferred income tax assets | | R&D Investment | 39,445,702.00 | 60,149,877.27 | -34.42% | Mainly due to R&D project optimization and cost control | | Net Cash Flow from Operating Activities | -482,326.08 | -8,315,479.52 | 94.20% | Mainly due to advance game revenue received in the current period | | Net Cash Flow from Investing Activities | -811,174.74 | -28,384,463.30 | 97.14% | Mainly due to R&D capitalization and reduced investment in the current period | | Net Cash Flow from Financing Activities | 2,057,080.51 | 36,677,131.70 | -94.39% | Mainly due to increased cash payments for debt repayment in the current period | | Net Increase in Cash and Cash Equivalents | 1,592,892.77 | 600,448.91 | 165.28% | Mainly due to advance game revenue received in the current period | Products or Services Accounting for Over 10% of Revenue Technical services and related businesses saw a 35.52% decrease in revenue and a 12.65% decrease in gross profit margin, while game product revenue decreased by 42.53% with a 19.06% decline in gross profit margin Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :----------------- | :----------------------- | :-------------------- | :------------------ | :------------------------------ | :--------------------------- | :-------------------------------- | | Technical Services and Support | 46,658,803.89 | 40,344,848.90 | 13.53% | -35.52% | -24.46% | -12.65% | | Game Products | 58,262,816.05 | 34,453,417.95 | 40.87% | -42.53% | -15.18% | -19.06% | Overview of Key Games The company's primary game, Game 1, accounted for 80.72% of game revenue, with Q1 and Q2 recharge flows of 155 million yuan and 169 million yuan, respectively, while other games showed declining user data and recharge flows Key Game Revenue Contribution | Game Name | Revenue (Yuan) | Revenue Share of Game Business Revenue | | :-------- | :------------- | :------------------------------------- | | Game 1 | 47,029,202.81 | 80.72% | | Game 2 | 10,432,546.21 | 17.91% | | Game 3 | 622,871.93 | 1.07% | Key Game User and Recharge Flow Data | Game Name | Quarter | New Users | Active Users | Paying Users | ARPU (Yuan) | Recharge Flow (Yuan) | | :-------- | :------ | :-------- | :----------- | :----------- | :---------- | :------------------- | | Game 1 | Q1 | 204,569 | 15,827,251 | 159,720 | 9.79 | 154,903,530.74 | | Game 1 | Q2 | 376,524 | 15,943,560 | 215,373 | 10.60 | 169,018,119.29 | | Game 2 | Q1 | 78,258 | 2,164,694 | 114,483 | 11.43 | 24,736,660.00 | | Game 2 | Q2 | 73,529 | 2,240,828 | 100,782 | 9.20 | 20,624,574.00 | | Game 3 | Q1 | 44,110 | 639,107 | 10,520 | 3.21 | 2,049,504.00 | | Game 3 | Q2 | 17,953 | 447,032 | 5,593 | 1.71 | 764,302.01 | Analysis of Non-Principal Business During the reporting period, non-principal business impacted total profit, with investment income of -4.7563 million yuan, non-operating expenses of -1.9945 million yuan, and credit impairment losses of -2.5954 million yuan Impact of Non-Principal Business on Total Profit | Item | Amount (Yuan) | Share of Total Profit | Reason for Formation | Sustainability | | :--------------- | :------------ | :-------------------- | :---------------------------------------------------------- | :------------- | | Investment Income | -4,756,263.47 | 11.15% | Mainly due to accrual of investment income from Game Air and Guoxin Youyi | Yes | | Asset Impairment | 571,590.55 | -1.34% | | Yes | | Non-Operating Income | 75,193.33 | -0.18% | | No | | Non-Operating Expenses | -1,994,540.00 | 4.68% | Mainly due to adjustment of estimated liabilities based on the second-instance judgment of Shanghai Junmeng contract dispute case | No | | Credit Impairment Losses | -2,595,379.84 | 6.08% | Mainly due to increased bad debt provision for other receivables | Yes | | Other Income | 299,669.00 | -0.70% | Mainly due to receipt of government grants and individual income tax handling fee refunds | No | Analysis of Assets and Liabilities At the end of the reporting period, total assets slightly decreased by 0.25%, with increases in monetary funds, prepayments, development expenditures, deferred tax assets, right-of-use assets, and lease liabilities, while short-term borrowings and contract liabilities also increased Significant Changes in Asset Composition | Item | Current Period-End Amount (Yuan) | Share of Total Assets | Prior Year-End Amount (Yuan) | Share of Total Assets | Change in Proportion | Explanation of Significant Change | | :----------------------- | :------------------------------- | :-------------------- | :--------------------------- | :-------------------- | :------------------- | :-------------------------------- | | Monetary Funds | 81,052,454.35 | 7.83% | 70,645,028.32 | 6.81% | 1.02% | | | Right-of-Use Assets | 7,117,452.54 | 0.69% | 8,486.96 | 0.00% | 0.69% | Due to new property lease contracts in the current period | | Short-Term Borrowings | 164,689,215.99 | 15.91% | 143,412,605.00 | 13.82% | 2.09% | Increase in bank borrowings in the current period | | Contract Liabilities | 78,770,499.92 | 7.61% | 52,517,930.49 | 5.06% | 2.55% | Mainly due to advance game revenue received | | Lease Liabilities | 5,388,375.08 | 0.52% | | | 0.52% | Due to new property lease contracts in the current period | | Prepayments | 37,776,553.16 | 3.65% | 32,290,007.09 | 3.11% | 0.54% | | | Deferred Income Tax Assets | 28,494,214.94 | 2.75% | 22,563,905.67 | 2.17% | 0.58% | | - The company had no major overseas assets during the reporting period[33] Financial Assets Measured at Fair Value | Item | Beginning Balance (Yuan) | Ending Balance (Yuan) | | :----------------------- | :----------------------- | :-------------------- | | Trading Financial Assets | 55,679,836.44 | 55,679,836.44 | | Other Non-Current Financial Assets | 873,742.67 | 436,871.33 | | Subtotal Financial Assets | 56,553,579.11 | 56,116,707.77 | Asset Rights Restriction Status | Item | Period-End Book Balance (Yuan) | Reason for Restriction | | :--------------- | :----------------------------- | :-------------------------------------------------------------------------------------------------------------------- | | Monetary Funds | 10,843,239.86 | Mainly due to temporary freezing from litigation. As of the disclosure date, 10,843,145.40 yuan has been unfrozen, with a restricted balance of 94.46 yuan | | Investment Properties | 164,932,121.67 | Mortgage loan, see Section X/VII, 45 for long-term borrowings | | Fixed Assets | 14,258,426.11 | Mortgage loan, see Section X/VII, 45 for long-term borrowings | | Intangible Assets | 7,938,449.99 | Mortgage loan, see Section X/VII, 45 for long-term borrowings | Analysis of Investment Status During the reporting period, the company had no significant equity investments, non-equity investments, use of raised funds, entrusted wealth management, derivative investments, or entrusted loans - The company had no use of raised funds during the reporting period[36] - The company had no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[37] Significant Asset and Equity Disposals The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[38] - The company did not dispose of significant equity during the reporting period[39] Analysis of Major Holding and Participating Companies Major subsidiaries Shanghai Junmeng, Xiamen Fuchun, and Zhongfu Technology all experienced declining net profits or losses during the reporting period, primarily due to delayed game releases, increased R&D costs, and credit impairment losses Financial Performance of Major Holding and Participating Companies (Unit: 10,000 Yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :----------- | :----------- | :-------------------- | :----------------- | :----------- | :--------- | :---------------- | :--------------- | :--------- | | Shanghai Junmeng | Subsidiary | Game Design, R&D, Operation | 1,360.4082 | 52,145.11 | 40,753.71 | 6,694.21 | -1,063.56 | -389.27 | | Xiamen Fuchun | Subsidiary | Communication Technology Services | 8,000 | 19,860.44 | 4,902.90 | 642.03 | -1,258.54 | -1,258.55 | | Zhongfu Technology | Subsidiary | Information Technology and Construction Services | 1,000 | 4,789.08 | -1,479.01 | 0.00 | -548.22 | -548.22 | - Shanghai Junmeng's net profit decreased year-on-year, mainly due to delayed game release plans[40] - Xiamen Fuchun has some projects in the R&D and industrialization stage, and its subsidiaries' involvement in game R&D and operations led to increased costs[40] - Zhongfu Technology's loss in the current period was mainly due to the accrual of credit impairment losses[40] Structured Entities Controlled by the Company The company had no structured entities under its control during the reporting period - The company had no structured entities under its control during the reporting period[41] Risks Faced by the Company and Countermeasures The company faces risks from intensifying communication market competition, changing industry regulations, intellectual property infringement, short game product life cycles, and new game development failures, which it addresses through market service enhancements, policy adherence, R&D investment, IP acquisition, and product maintenance - The company faces communication market competition risks, with countermeasures including strengthening regional market service systems, closely following national policies and industry trends, timely technological upgrades, and exploring new business areas[41] - The game business faces risks such as intensifying market competition, rapid industry dynamics, and channel oligopoly, with countermeasures including increasing R&D investment, acquiring high-quality IPs, providing excellent user services, and expanding upstream and downstream connections in the cultural industry[41] - The company faces industry regulatory policy risks, with countermeasures to continuously monitor policy changes, ensure business compliance, and apply for relevant approvals and licenses in advance[41] - The company faces intellectual property risks, with countermeasures to enhance employee IP awareness, seek partners with clear IP rights, and standardize contract terms[41] - The company faces game product life cycle risks, with countermeasures including planning and estimation during project initiation, leveraging high-quality IPs, and timely updating, maintaining, upgrading, and marketing game products[42] - The company faces risks of new game development and operation failures, with countermeasures including deep cultivation of niche game markets, insight into industry changes, learning new technologies and trends, and maintaining leading R&D team strength[42] Registration Form for Research, Communication, and Interview Activities During the Reporting Period During the reporting period, the company hosted two research activities, an online performance briefing and an on-site visit, both focusing on the company's operations and future development outlook Research Activities During the Reporting Period | Reception Time | Reception Location | Reception Method | Type of Reception Object | Main Content Discussed and Materials Provided | | :--------------- | :----------------- | :--------------------- | :----------------------- | :-------------------------------------------- | | May 13, 2024 | Online | Online platform communication | Other | Company's operating situation and future development outlook | | May 27, 2024 | Company Meeting Room | On-site research | Individuals, Institutions | Company's operating situation and future development outlook | Implementation of the 'Quality and Return Enhancement' Action Plan The company did not disclose an announcement regarding its "Quality and Return Enhancement" action plan - The company did not disclose an announcement regarding its "Quality and Return Enhancement" action plan[44] Corporate Governance This section details the company's corporate governance, including shareholder meetings, changes in management, profit distribution, and equity incentive plans Information on Annual and Extraordinary General Meetings Held During the Reporting Period During the reporting period, the company held its first extraordinary general meeting of 2024 and the 2023 annual general meeting, with investor participation rates of 26.54% and 27.00%, respectively General Meeting Information | Session | Meeting Type | Investor Participation Rate | Date Held | | :----------------------- | :----------------------- | :-------------------------- | :------------- | | 2024 First Extraordinary General Meeting | Extraordinary General Meeting | 26.54% | January 08, 2024 | | 2023 Annual General Meeting | Annual General Meeting | 27.00% | May 15, 2024 | Changes in Directors, Supervisors, and Senior Management During the reporting period, there were changes in the company's senior management, with Huang Xiaoluan appointed as President and Zhang Hongtao as Vice President, while Miao Fuzhang resigned as President but continues as Chairman Changes in Senior Management | Name | Position Held | Type | Date | Reason | | :--------- | :------------ | :------- | :------------- | :------------------------------------------------------------------ | | Huang Xiaoluan | President | Appointment | April 23, 2024 | Appointed by the Board of Directors | | Zhang Hongtao | Vice President | Appointment | April 23, 2024 | Appointed by the Board of Directors | | Miao Fuzhang | President | Dismissal | April 23, 2024 | Resigned as President due to personal reasons, continues as Chairman | Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[47] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company cancelled 4.404 million stock options from its 2022 equity incentive plan due to employee departures and unmet performance targets, adjusting the number of eligible participants and remaining options - The company cancelled 4.404 million shares of stock options from its 2022 equity incentive plan, involving resigned incentive objects and stock options that failed performance assessments[47] - After the cancellation, the number of initially granted incentive objects was adjusted to 18 individuals, with 5.82 million shares of granted but unvested stock options remaining[48] - The number of reserved granted incentive objects was adjusted to 10 individuals, with 2.816 million shares of granted but unvested stock options remaining[48] Environmental and Social Responsibility This section outlines the company's environmental performance and its commitment to social responsibility initiatives Significant Environmental Issues The company and its subsidiaries are not classified as key polluting units and received no environmental administrative penalties during the reporting period - The company and its subsidiaries are not classified as key polluting units by environmental protection authorities[50] - No administrative penalties were received due to environmental issues during the reporting period[50] Social Responsibility In H1 2024, the company actively practiced its corporate values by organizing tree-planting donations and establishing a "Shared Reading Corner" to integrate social responsibility into its development strategy - The company actively practices its corporate value of "Achieving Others, Achieving Oneself" by organizing various social welfare activities and volunteer services[50] - Through the "Fuchun Forest" initiative, the company participates in tree planting based on running mileage and donates to the Gansu Greening Foundation's "My Poplar Forest Project"[50] - A "Shared Reading Corner" was established, offering corporate book collections for free public reading[50] Significant Matters This section covers significant events, including commitments, related party transactions, litigation, and other important disclosures during the reporting period Commitments Fulfilled or Overdue by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue as of the end of the reporting period[51] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company - During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company[51] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[51] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[51] Board of Directors' and Supervisory Board's Explanations on 'Non-Standard Audit Report' for the Current Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[51] Board of Directors' Explanations on 'Non-Standard Audit Report' for the Previous Year The company had no non-standard audit report for the previous year during the reporting period - The company had no non-standard audit report for the previous year during the reporting period[51] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[51] Litigation Matters The company had no major litigation or arbitration matters during the reporting period, but several other lawsuits are ongoing, including a contract dispute for 53.1316 million yuan awaiting its first-instance hearing - The company had no major litigation or arbitration matters during the reporting period[52] Progress of Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (10,000 Yuan) | Litigation (Arbitration) Progress | Litigation (Arbitration) Judgment Execution Status | | :-------------------------------------------------------------------------- | :---------------------------- | :-------------------------------- | :----------------------------------- | | Fuchun Co. sued Shanghai Liheng for accounts receivable guarantee | 528.57 | Judgment rendered | Under compulsory enforcement, 2.3 million yuan received from Shanghai Liheng | | Fuchun Co. sued Zhonglian Baiwen for investment dispute | 3,199.88 | Ruling rendered | Under compulsory enforcement, 5 million yuan received from Zhonglian Baiwen | | Shanghai Huanle Huyu Network Technology Co., Ltd. and Shanghai Rexue Network Technology Co., Ltd. sued Shanghai Junmeng for contract dispute | 1,000 | Judgment rendered | None | | Fuchun Co. sued Zhongfu Data and Zhang Wenjun | 747.17 | Judgment rendered | Under enforcement | | Sichuan Junyang Construction Group Co., Ltd. sued Fuchun Co. for contract dispute | 5,313.16 | Awaiting first-instance hearing | None | - Sichuan Junyang Construction Group Co., Ltd. sued the company for a contract dispute in Chengdu Jinniu District People's Court and applied for property preservation, resulting in the preservation of company properties, with the court yet to open the hearing[362][363] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[54] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company had no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period - The company had no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period[54] Significant Related Party Transactions During the reporting period, the company had no related party transactions related to daily operations, asset/equity acquisitions or disposals, joint external investments, or related party receivables/payables, nor any financial business with related financial companies - The company had no related party transactions related to daily operations during the reporting period[54] - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[54] - The company had no related party transactions involving joint external investments during the reporting period[55] - The company had no related party receivables or payables during the reporting period[56] - The company had no deposits, loans, credit lines, or other financial business with related financial companies or financial companies controlled by the company and related parties[57][58] - The company had no other significant related party transactions during the reporting period[59] Significant Contracts and Their Performance The company had no entrustment or contracting arrangements during the reporting period; its Xiamen Software Park Phase III data center generated 5.3521 million yuan in rental income, and the company provided guarantees totaling 142.7856 million yuan for subsidiaries, representing 26.07% of its net assets - The company had no entrustment or contracting arrangements during the reporting period[60] - The company's Fuchun Big Data Industrial Base in Xiamen Software Park Phase III generated 5.3521 million yuan in rental income from January to June 2024[60] - The company had no leasing projects that generated profit or loss exceeding 10% of its total profit during the reporting period[60] Company Guarantees for Subsidiaries (Unit: 10,000 Yuan) | Name of Guaranteed Party | Announcement Date of Guarantee Quota | Guarantee Quota | Actual Occurrence Date | Actual Guarantee Amount | Guarantee Period | Fulfilled | | :----------------------- | :--------------------------------- | :-------------- | :--------------------- | :---------------------- | :--------------- | :-------- | | Xiamen Fuchun | January 11, 2019 | 14,000 | June 28, 2019 | 2,000 | Ten Years | No | | Xiamen Fuchun | January 11, 2019 | 14,000 | August 23, 2019 | 928.56 | Ten Years | No | | Xiamen Fuchun | January 11, 2019 | 14,000 | October 25, 2019 | 1,100 | Ten Years | No | | Xiamen Fuchun | January 11, 2019 | 14,000 | December 12, 2019 | 848 | Ten Years | No | | Xiamen Fuchun | January 18, 2020 | 14,000 | March 26, 2020 | 852 | Ten Years | No | | Xiamen Fuchun | April 24, 2024 | 6,000 | June 28, 2024 | 900 | Three Years | No | | Chengdu Zhicheng | April 24, 2024 | 1,000 | June 17, 2024 | 500 | One Year | No | | Chengdu Zhicheng | April 25, 2023 | 1,000 | September 19, 2023 | 500 | One Year | No | | Fujian Xinchen | April 25, 2023 | 5,000 | February 02, 2024 | 500 | One Year | No | | Fujian Xinchen | April 25, 2023 | 5,000 | September 14, 2023 | 800 | One Year | No | | Fujian Xinchen | April 25, 2023 | 5,000 | September 22, 2023 | 200 | One Year | No | | Fujian Xinchen | April 25, 2023 | 5,000 | October 25, 2023 | 700 | Two Years | No | | Fujian Xinchen | April 25, 2023 | 5,000 | October 24, 2023 | 300 | Two Years | No | | Beijing Tongchang | April 25, 2023 | 7,000 | September 19, 2023 | 1,000 | One Year | No | | Beijing Tongchang | April 25, 2023 | 7,000 | January 26, 2024 | 1,000 | One Year | No | | Shanghai Junmeng | April 25, 2023 | 20,000 | February 01, 2024 | 750 | One Year | No | | Shanghai Junmeng | April 25, 2023 | 20,000 | February 04, 2024 | 200 | One Year | No | | Shanghai Junmeng | April 25, 2023 | 20,000 | March 27, 2024 | 200 | One Year | No | | Shanghai Junmeng | April 25, 2023 | 20,000 | April 18, 2024 | 600 | One Year | No | | Shanghai Junmeng | April 25, 2023 | 20,000 | April 22, 2024 | 200 | Two Years | No | | Shanghai Junmeng | April 25, 2023 | 20,000 | May 14, 2024 | 200 | One Year | No | Total Company Guarantees | Indicator | Amount (10,000 Yuan) | | :------------------------------------------------------------------------ | :------------------- | | Total Approved Guarantee Amount During Reporting Period | 55,000 | | Total Actual Guarantee Amount Incurred During Reporting Period | 5,050 | | Total Approved Guarantee Amount at Period-End | 55,000 | | Total Actual Guarantee Balance at Period-End | 14,278.56 | | Ratio of Total Actual Guarantee Amount to Company's Net Assets | 26.07% | | Of which: Debt Guarantees Provided Directly or Indirectly to Guaranteed Parties with Asset-Liability Ratio Exceeding 70% | 11,128.56 | - The company had no other significant contracts during the reporting period[67] Explanation of Other Significant Matters In April 2024, the company appointed Huang Xiaoluan as President and Zhang Hongtao as Vice President, following Miao Fuzhang's resignation as President; in May 2024, subsidiary Shanghai Junmeng partnered with Gravity Co.Ltd. for the Japanese release of "Ragnarok Online: New Generation" - In April 2024, Mr. Miao Fuzhang resigned from his position as company President due to personal reasons, but continues to serve as Chairman[68] - The company's Board of Directors appointed Ms. Huang Xiaoluan as company President and Mr. Zhang Hongtao as company Vice President[68] - In May 2024, subsidiary Shanghai Junmeng signed a "Technical Support Agreement" with Gravity Co.Ltd., collaborating on the release of "Ragnarok Online: New Generation" in Japan[68][69] Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[70] Share Changes and Shareholder Information This section details changes in the company's share capital, information on securities issuance, shareholder structure, and shareholdings of directors and management Share Changes During the reporting period, restricted shares decreased by 56.376 million, while unrestricted shares increased by the same amount, with total shares remaining unchanged, primarily due to the lifting of restrictions on shares held by Miao Pinzhang and Chen Ping Share Changes (Unit: Shares) | Item | Quantity Before Change | Proportion | Increase/Decrease in This Change (＋,－) | Quantity After Change | Proportion | | :----------------------- | :--------------------- | :--------- | :--------------------------------------- | :-------------------- | :--------- | | I. Restricted Shares | 57,693,571 | 8.35% | -56,376,571 | 1,317,000 | 0.19% | | II. Unrestricted Shares | 633,535,914 | 91.65% | 56,376,571 | 689,912,485 | 99.81% | | III. Total Shares | 691,229,485 | 100.00% | 0 | 691,229,485 | 100.00% | Changes in Restricted Shares (Unit: Shares) | Shareholder Name | Restricted Shares at Beginning of Period | Shares Unrestricted in Current Period | Shares Restricted in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--------------- | :------------------------------------- | :------------------------------------ | :---------------------------------- | :--------------------------------- | :--------------------- | | Lin Mei | 154,500 | 0 | 0 | 154,500 | Senior Management Lock-up | | Lin Jianping | 150,000 | 0 | 0 | 150,000 | Senior Management Lock-up | | Liu Yahui | 1,350,000 | 337,500 | 0 | 1,012,500 | Quasi-Senior Management Lock-up | | Miao Pinzhang | 52,842,879 | 52,842,879 | 0 | 0 | - | | Chen Ping | 3,196,192 | 3,196,192 | 0 | 0 | - | | Total | 57,693,571 | 56,376,571 | 0 | 1,317,000 | -- | Issuance and Listing of Securities The company had no issuance or listing of securities during the reporting period - The company had no issuance or listing of securities during the reporting period[73] Number of Shareholders and Shareholding Information At the end of the reporting period, the company had 42,676 common shareholders, with Fujian Fuchun Investment Co., Ltd., Miao Pinzhang, and Pingtan Aode Investment Management Co., Ltd. as top shareholders, and some shareholders participating in securities lending - At the end of the reporting period, the total number of common shareholders was 42,676 households[73] Top 10 Shareholders' Shareholding (Unit: Shares) | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shares Held at Period-End | Unrestricted Shares Held | Pledged, Marked, or Frozen Status | | :------------------------------------------------------------------------- | :----------------- | :----------------- | :------------------------ | :----------------------- | :------------------------ | | Fujian Fuchun Investment Co., Ltd. | Domestic Non-State Legal Person | 14.88% | 102,868,158 | 102,868,158 | Pledged 40,300,000 | | Miao Pinzhang | Domestic Natural Person | 7.64% | 52,842,879 | 52,842,879 | Pledged 26,400,000 | | Pingtan Aode Investment Management Co., Ltd. | Domestic Non-State Legal Person | 4.99% | 34,487,500 | 34,487,500 | Pledged 8,500,000 | | China Minsheng Bank Co., Ltd. - Huaxia CSI Animation and Game ETF | Other | 2.20% | 15,206,635 | 15,206,635 | Not Applicable | | Miao Zhiyi | Domestic Natural Person | 1.26% | 8,677,379 | 8,677,379 | Not Applicable | | Deng Xiaoshan | Domestic Natural Person | 1.23% | 8,534,839 | 8,534,839 | Not Applicable | | Ningbo Xinhengcheng Enterprise Management Co., Ltd. | Domestic Non-State Legal Person | 0.67% | 4,609,800 | 4,609,800 | Not Applicable | | Shanghai Pudong Development Bank Co., Ltd. - Guotai CSI Animation and Game ETF | Other | 0.56% | 3,857,130 | 3,857,130 | Not Applicable | | Chen Xinlan | Domestic Natural Person | 0.48% | 3,304,800 | 3,304,800 | Not Applicable | | Chen Ping | Domestic Natural Person | 0.46% | 3,196,192 | 3,196,192 | Not Applicable | - Miao Pinzhang holds 90% equity in Fuchun Investment, 95.5% equity in Pingtan Aode, and is the father of Miao Zhiyi, making these shareholders concerted parties[74] Share Lending by Shareholders Holding Over 5%, Top 10 Shareholders, and Top 10 Unrestricted Shareholders (Unit: Shares) | Shareholding Shareholder Name (Full Name) | Total Shares Held in Ordinary and Credit Accounts at Beginning of Period | Total Shares Lent and Not Yet Returned via Securities Lending at Beginning of Period | Total Shares Held in Ordinary and Credit Accounts at End of Period | Total Shares Lent and Not Yet Returned via Securities Lending at End of Period | | :------------------------------------------------------------------------- | :----------------------------------------------------------------------- | :----------------------------------------------------------------------------------- | :----------------------------------------------------------------- | :------------------------------------------------------------------------------- | | China Minsheng Bank Co., Ltd. - Huaxia CSI Animation and Game ETF | 5,995,787 | 2,351,700 | 15,206,635 | 108,500 | | Shanghai Pudong Development Bank Co., Ltd. - Guotai CSI Animation and Game ETF | 2,099,330 | 909,800 | 3,857,130 | 822,100 | Cumulative Pledged Shares of Controlling Shareholder or Largest Shareholder and Their Concerted Parties Reaching 80% of Their Total Shareholding During the reporting period, the company's controlling shareholder or largest shareholder and their concerted parties did not have cumulative pledged shares reaching 80% of their total shareholding - During the reporting period, the company's controlling shareholder or largest shareholder and their concerted parties did not have cumulative pledged shares reaching 80% of their total shareholding[77] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[77] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The