KINGNET(002517)2024-04-29 16:51Financial Performance - Revenue in 2023 reached 4.295 billion yuan, a year-on-year increase of 15.30%[2] - Net profit attributable to shareholders in 2023 was 1.462 billion yuan, a year-on-year increase of 42.57%[2] - Revenue for 2023 reached 4,295,390,346.58 yuan, a 15.30% increase compared to 2022[21] - Net profit attributable to shareholders in 2023 was 1,461,713,259.53 yuan, up 42.57% year-over-year[21] - Operating cash flow for 2023 was 1,706,441,025.06 yuan, a 15.07% increase from 2022[21] - Total assets at the end of 2023 were 6,610,369,843.65 yuan, a 14.35% increase compared to the end of 2022[21] - Shareholders' equity at the end of 2023 was 5,244,042,212.61 yuan, a 17.28% increase from the end of 2022[21] - Basic earnings per share for 2023 was 0.70 yuan, a 42.86% increase compared to 2022[21] - Weighted average return on equity for 2023 was 28.85%, up 2.66 percentage points from 2022[21] - Revenue reached 4.295 billion yuan, a year-on-year increase of 15.30%[34] - Net profit attributable to shareholders was 1.462 billion yuan, a year-on-year increase of 42.57%[34] - Net cash flow from operating activities was 1.706 billion yuan, a year-on-year increase of 15.07%[34] - The company achieved a revenue of 4.295 billion yuan in 2023, a year-on-year increase of 15.30%, and a net profit attributable to shareholders of 1.462 billion yuan, a year-on-year increase of 42.57%[45] - The company's total assets reached 6.61 billion yuan by the end of 2023, a year-on-year increase of 14.35%, and the net assets attributable to shareholders were 5.244 billion yuan, a year-on-year increase of 17.28%[45] - Total revenue for 2023 reached 4,295,390,346.58 yuan, a year-on-year increase of 15.30%[51] - Mobile game revenue accounted for 83.27% of total revenue, reaching 3,576,655,401.35 yuan, up 13.28% year-on-year[51] - Information service revenue increased by 43.28% to 664,129,536.95 yuan, accounting for 15.46% of total revenue[51] - Overseas revenue surged by 619.54% to 116,616,751.59 yuan, representing 2.71% of total revenue[51] - Self-operated mode revenue grew by 291.40% to 793,556,172.99 yuan, accounting for 18.47% of total revenue[51] - Operating cash flow increased by 15.07% to 1.71 billion yuan, driven by a 9.69% increase in operating cash inflows[64] - Investment cash flow decreased by 184.47% to -377.83 million yuan, mainly due to reduced cash receipts from investment activities[64] - Financing cash flow decreased by 83.45% to -1.06 billion yuan, primarily due to increased cash payments related to financing activities[64] - Net cash and cash equivalents decreased by 80.39% to 268.65 million yuan[64] - Total assets increased from 5.78 billion yuan to 6.61 billion yuan, a growth of 14.3%[195][196] - Monetary funds rose from 2.55 billion yuan to 2.81 billion yuan, an increase of 10.0%[195] - Accounts receivable grew from 858.41 million yuan to 1.05 billion yuan, up 22.0%[195] - Long-term equity investments increased from 397.76 million yuan to 518.41 million yuan, a rise of 30.3%[195] - Total liabilities increased from 1.24 billion yuan to 1.37 billion yuan, up 10.7%[196][197] - Retained earnings surged from 2.07 billion yuan to 3.32 billion yuan, a significant growth of 60.3%[197] - Parent company's total assets grew from 11.35 billion yuan to 11.52 billion yuan, an increase of 1.6%[198][199] - Parent company's long-term equity investments increased from 7.95 billion yuan to 8.66 billion yuan, up 8.9%[199] - Parent company's other receivables decreased from 2.78 billion yuan to 2.26 billion yuan, a drop of 18.7%[198] - Parent company's total liabilities rose from 162.07 million yuan to 599.71 million yuan, a substantial increase of 270.0%[199] - Total liabilities increased to 599,713,962.74, up from 162,065,104.17[200] - Total owner's equity decreased to 10,924,041,336.00 from 11,185,259,315.80[200] - Capital reserve rose to 6,005,590,672.96 from 5,865,895,903.62[200] - Treasury stock increased to 340,670,858.84 from 140,701,119.84[200] - Undistributed profits decreased to 2,766,277,010.07 from 2,968,431,422.54[200] R&D and Innovation - R&D investment in 2023 was 527 million yuan, accounting for 12.26% of revenue[2] - Planned investment of 800 million yuan to establish a digital economy R&D center[2] - Established an AI application research center and developed the "Xingyi" large model for R&D scenarios[2] - The company invested 527 million yuan in R&D in 2023, accounting for 12.26% of its revenue[43] - The self-developed "Xingyi" large model has been applied in actual R&D scenarios, focusing on game vertical applications and significantly improving efficiency for multiple projects[43] - R&D expenses increased by 3.01% to 526.68 million yuan, accounting for 12.26% of total revenue[63] - R&D personnel increased by 12.71% to 1,295, with 69.29% of total employees being R&D staff[62] - Developed the "Xingyi" large model for image generation and text understanding, enhancing content creation efficiency and quality[81] - The company plans to establish the Kaiying Network Digital Economy R&D Center to enhance capabilities in game development, AI, VR/AR, and digital transformation[164] Dividends and Share Repurchases - Implemented a mid-term dividend of 213 million yuan in 2023 and plans to distribute a 2023 annual dividend of 213 million yuan in 2024[3] - Executed a share repurchase of 200 million yuan in 2023[3] - The company completed a share repurchase plan, buying back 16,074,400 shares, representing 0.75% of total shares, with a total transaction value of 199,969,739 yuan[49] - The company allocated a cash dividend of RMB 1 per 10 shares, based on a total of 2,130,570,334 shares, implemented on September 28, 2023[120] - The company plans to distribute a cash dividend of 1 yuan per 10 shares, totaling 212,658,602.60 yuan[122] - Total cash dividends, including other methods, amount to 412,628,341.60 yuan, accounting for 100% of the profit distribution[123] - The company's distributable profit for 2023 is 2,766,277,010.07 yuan[123] - The company's total equity base for the dividend distribution plan is 2,126,586,026 shares[122] - The company's repurchase plan involves 4,591,368 to 9,182,736 shares, accounting for 0.21% to 0.43% of the total shares, with a planned repurchase amount of 10,000 to 20,000 million yuan[182] - The company has already repurchased 16,074,400 shares as part of its repurchase plan[182] - The repurchase period is from August 30, 2023, to August 29, 2024, and the repurchased shares are intended for future employee stock ownership plans and equity incentive plans[182] Corporate Governance - Increased the proportion of independent directors on the board from 1/3 to 1/2 and adjusted the audit committee to be fully composed of independent directors[5] - Recognized in multiple indices and awarded titles such as "2023 ESG Best Practice Case" and "Best Investor Relations Award"[5] - The company has four independent directors, accounting for half of the total board members[89] - The company has three supervisors, with the composition and number of the supervisory board meeting legal requirements[89] - The company has established a transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management[90] - The company ensures the independence of its business, personnel, assets, organization, and finance from the controlling shareholder[92] - The company strictly adheres to legal and regulatory requirements for corporate governance and information disclosure[91] - The company's governance practices are in compliance with legal and regulatory standards without significant differences[91] - The 2022 Annual General Meeting had an investor participation rate of 36.69%[93] - The 2023 First Extraordinary General Meeting saw an investor participation rate of 37.25%[93] - The 2023 Second Extraordinary General Meeting recorded an investor participation rate of 40.16%[93] - The 2023 Third Extraordinary General Meeting had an investor participation rate of 27.18%[93] - The company's internal control evaluation report and internal control audit report were both disclosed on April 30, 2024, with no major or significant defects identified in either financial or non-financial reporting[133][134] - The company's internal control system was deemed effective in all material aspects as of December 31, 2023, according to the internal control audit report[134] - The company's internal control evaluation covered 100% of both total assets and operating revenue in the consolidated financial statements[133] - The company's defect identification standards for internal control are based on 5% of pre-tax profit for both financial and non-financial reporting[133] - The company's internal control audit report received a standard unqualified opinion[134] - The company's internal control evaluation report was consistent with the internal control audit report's findings[134] Game Development and Market Performance - The VR game "Mecha Party" was officially launched on PlayStation North America and Steam platforms[37] - The round-based RPG game "Stone Age: Awakening" was officially launched in October 2023[37] - The copyright cooperation project "Nazarick King" was launched on November 21, 2023, with over 1 million pre-registrations[36] - The game "Nazarick King" ranked as high as 19th on the best-selling list in its first month[36] - The game "Gundam Supreme Battle" quickly reached the top of the iOS free list in Hong Kong and Taiwan after its launch in June 2021[35] - The company invested in Chengdu Zhidian Network Technology Co., Ltd., which is developing two medium-sized creative games[40] - The company successfully operates long-cycle premium products such as "Original Legend," "Hot Blood Combo," and "Angel Wars"[43] - The company has obtained IP authorizations for "Sword Art Online," "Mobile Suit Gundam Series," and "The Legend of the Condor Heroes," among others[44] - The company's core game users have a fan base of over 3 million, with more than 50 signed live streamers[47] - The company's product "New Heaven Sword and Dragon Saber" ranked first on the iOS free game charts in Hong Kong and Taiwan[47] - The company signed a strategic cooperation agreement with Century Huatong to deepen collaboration in IP, brand, and other new areas[47] - Multiple new games in development, including "Project RO" and "Code: WL," aimed at expanding IP matrix and exploring new markets[61] - Revenue from online games reached 4.295 billion yuan, accounting for the majority of the company's total revenue[189] - The company's goodwill net value after deducting accumulated impairment was 852.26 million yuan as of December 31, 2023[190] - The audit process included evaluating the design and effectiveness of internal controls related to online game revenue[189] - The company conducted annual impairment tests on goodwill, which involved significant management estimates and assumptions[190] - The audit team performed IT audits to verify the consistency of game product backend data with financial information[189] Investor Relations - The company conducted multiple investor relations activities throughout 2023, including on-site visits, phone conferences, and online platform interactions[85] - Key participants in these activities included major financial institutions such as Tianfeng Securities, GF Securities, and Huatai Securities[85] - Discussions primarily focused on the company's business operations, governance, and performance[85] - Specific events included a performance briefing on May 15, 2023, via the Quanjing Network platform[85] - The company engaged with a diverse range of investors, including domestic and international asset management firms[85] - Detailed records of these investor relations activities were disclosed on the company's official information platform[85] - The company maintained consistent communication with institutional investors throughout the year[85] - Key locations for these activities included Shanghai and Shenzhen[85] - The company utilized various communication methods, including face-to-face meetings, phone calls, and online platforms[85] - The frequency of these activities indicates the company's commitment to transparent investor communication[85] - The company held a phone communication with institutional investors on October 27, 2023, discussing business, performance, and governance[86] - The company disclosed an investor relations activity record on September 26, 2023, detailing business and governance content[86] - The company engaged with multiple institutional investors, including Manulife Investment Management, on September 26, 2023[86] - The company's investor relations activity record on October 27, 2023, included discussions with various asset management firms and securities companies[86] - The company's communication on October 27, 2023, involved detailed discussions on business, performance, and governance with a wide range of institutional investors[86] ESG and Sustainability - Recognized in multiple indices and awarded titles such as "2023 ESG Best Practice Case" and "Best Investor Relations Award"[5] - The company purchased 825 green power certificates in 2023 to accelerate its carbon neutrality process[139] - The company's ESG report for 2023 was disclosed on April 30, 2024, detailing its sustainability efforts and environmental impact[139] - The company's environmental impact is primarily from daily office energy consumption, with no environmental penalties incurred during the reporting period[137] - The company is not listed as a key pollutant discharge unit by environmental protection authorities[136] - The company donated funds and materials worth over 6 million RMB, benefiting more than 12,000 children in rural areas[140] - The company conducted 108 "Cloud Teaching Rural Small Classroom" sessions, totaling over 4,300 minutes[140] - The company donated 140 VR headsets and 288 VR courses to schools in Yushu Prefecture[140] - The company donated 150,000 RMB to the "Sports Dream Class" project, supporting 18 young sports teachers in Qinghai Province[140] - The company donated 6,167 educational materials to 4 rural schools in Sichuan Province[140] Legal and Regulatory Issues - The company's 2018 annual report falsely recorded a reduction in net profit of 43.75 million yuan, accounting for 25.09% of the audited net profit attributable to shareholders[104] - The company was fined 600,000 yuan by the China Securities Regulatory Commission Fujian Bureau for the false financial records in the 2018 annual report[104] - The company's subsidiary Shanghai Yueteng Network Technology Co., Ltd. adjusted 50 million yuan from "available-for-sale financial assets" to "other receivables" and fully provisioned for impairment in the 2018 annual report[103] - The company's 2018 annual report showed a net profit attributable to shareholders of 174.3853 million yuan[104] - The company's former deputy general manager Cheng Long was issued a warning letter by the China Securities Regulatory Commission Fujian Bureau for short-term trading activities[102] - The company's subsidiary Shanghai Kaiying Network Technology Co., Ltd. paid 50 million yuan to Ningbo Jiujin Investment Partnership as a goodwill gesture for a settlement with Blue Sand Information Technology (Shanghai) Co., Ltd.[103] - The company's 2018 annual report was found to have violated the 2005 Securities Law, leading to penalties for the company and its executives[104] - The company's former general manager Chen Yongcong was fined 300,000 yuan for his role in the false financial records of the 2018 annual report[104] - The company's former chairman Jin Feng was fined 300,000 yuan for his role in the false financial records of the 2018 annual report[104] - The lawsuit involving Legend IP and Shanghai Kaiying has an involved amount of 481.5274 million yuan, with the Supreme Court rejecting the retrial application[150] - The arbitration case initiated by Shanghai Kaiying against Legend IP involves an amount of 224.5 million yuan and is awaiting a ruling[150] - The arbitration case initiated by Zhejiang Huanyou against Legend IP involves an amount of 526.7288 million yuan and is in the pre-trial stage[150] - The total amount of disclosed but non-major litigation cases is 100.6251 million yuan[150] - The total amount of undisclosed but non-major litigation cases is 4.9534 million yuan[150] - The company reported no penalties or rectifications during the reporting period[151] - The company had no significant related transactions related to daily operations, asset or equity acquisitions, or joint external investments[152][153] Shareholder and Management Changes - The company's main business shifted from shoe production to computer technology development and sales after listing[19] - The controlling shareholder changed to Jin Feng on December 19, 2023[19] - The company's controlling shareholder and actual controller