Kunlun(SZ:300418)2016-04-10 16:00Financial Performance - The company reported a total revenue of RMB 1.5 billion for the fiscal year 2015, representing a year-over-year increase of 20%[19]. - The company's operating revenue for 2015 was ¥1,789,140,564.52, a decrease of 7.50% compared to 2014[26]. - Net profit attributable to shareholders was ¥405,288,398.77, an increase of 24.18% year-over-year[26]. - The net profit after deducting non-recurring gains and losses was ¥246,591,060.73, down 23.19% from the previous year[26]. - Total revenue for 2015 was approximately ¥1.79 billion, a decrease of 7.50% compared to ¥1.93 billion in 2014[79]. - Mobile game revenue reached ¥1,466 million, representing a year-on-year growth of 9.09%[69]. - The gross margin for the year was reported at 45%, a slight decrease from 48% in the previous year due to increased competition[19]. - The weighted average return on equity decreased to 16.67% from 35.80% in the previous year[26]. - The company achieved a total revenue of ¥1,789,140,564.52 in 2015, a year-on-year decrease of 7.5%[68]. - The revenue from web games saw a significant decline of 50.74%, totaling approximately ¥226 million[80]. Dividend Distribution - The company plans to distribute a cash dividend of 1.05 RMB per 10 shares to all shareholders, based on a total of 1,127,230,993 shares[13]. - The cash dividend for the year is set at 1.05 yuan per 10 shares, with a total cash dividend amounting to approximately 118.36 million yuan, representing 100% of the profit distribution[136]. - In 2015, the company distributed cash dividends totaling 118,359,254.27 yuan, representing 29.20% of the net profit attributable to ordinary shareholders[140]. - The cash dividend for 2014 was 115 million yuan, which accounted for 35.23% of the net profit attributable to ordinary shareholders[140]. - In 2013, the cash dividend was 220 million yuan, making up 50.47% of the net profit attributable to ordinary shareholders[140]. - The company did not propose a cash dividend distribution plan for the reporting period despite having positive distributable profits[140]. Business Strategy and Expansion - The company has established five main business lines: software tools, social platforms, IP management, internet finance, and video live streaming[13]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2017[19]. - The company aims to build a global internet ecosystem by integrating user systems, big data systems, and advertising systems across its business segments[36]. - The company plans to focus on online games, software application stores, and internet finance, aiming to provide high-quality value-added services to global internet users in 2016[125][126]. - The company has established partnerships with major tech firms to enhance its technological infrastructure and improve service delivery[19]. - The company aims to enhance the monetization capabilities of the Opera browser, which ranks fifth globally in mobile browser market share, by integrating it with existing products and teams[130][132]. Market and User Growth - User data indicated a growth in active users, reaching 10 million by the end of 2015, up from 8 million in 2014, marking a 25% increase[19]. - The Southeast Asian market showed the fastest growth in mobile gaming, achieving $1.8 billion in revenue in 2015, a 69% increase year-on-year[122]. - The international market presents a larger user base, with monthly active users estimated to be four times that of Chinese users[120]. Research and Development - Research and development expenses increased by 15% to RMB 200 million, focusing on enhancing gaming technology and user experience[19]. - The company has committed to research and development in internet technologies to maintain competitive advantage[119]. - The number of R&D personnel decreased to 330, accounting for 44.47% of the total workforce[96]. Regulatory and Operational Risks - The company acknowledges the risk of regulatory changes in both domestic and international markets that could adversely affect its operations[5]. - The company recognizes the need for thorough market research and regulatory compliance before entering new markets to minimize operational risks[8]. - The company faces significant currency exchange risks due to its substantial overseas revenue and transactions in foreign currencies[11]. Investments and Acquisitions - The company has invested in numerous leading companies in the internet sector, including Dada, Qufenqi, and Grindr, but faces risks of underperformance due to intense market competition[12]. - The company announced a strategic acquisition of a smaller gaming studio for RMB 300 million to bolster its game development capabilities[19]. - The company plans to acquire Opera, aiming to position it among the top three mobile browser providers globally, which will enhance its market share in software tools[52]. - The company has invested in several leading internet finance companies, with "Qufenqi" achieving over 8 billion RMB in transaction volume in 2015, indicating strong growth in the fintech sector[53]. Corporate Governance - The company is focused on improving its governance structure and operational mechanisms to manage the complexities arising from its expanding scale[13]. - The company emphasizes the importance of maintaining a stable core management and technical team to mitigate risks associated with talent turnover[9]. - The company has committed to fulfilling its promises to minority shareholders regarding share dilution compensation and immediate returns[146]. Shareholder Structure and Management - Major shareholder Zhou Yahui holds 35.09% of the shares, totaling 395,562,758 shares, with no change during the reporting period[187]. - The company has a diverse shareholder structure, with significant holdings from various entities, including 17.78% from Beijing Yingrui Century Software R&D Center[187]. - The total number of shares held by directors, supervisors, and senior management at the end of the period amounted to 529,551,500 shares, an increase from 394,615,900 shares at the beginning of the period, reflecting a net increase of 134,935,600 shares[198]. Legal Matters - There is an ongoing lawsuit involving a claim of 10 million yuan against the company for alleged copyright infringement related to the online game "Wuxia Q Chuan"[151]. - The company reported a total compensation of RMB 14,499,176.66 for damages and RMB 319,650.80 for reasonable expenses related to copyright infringement[152].