LINEKONG(HK:08267)2019-11-14 08:40Financial Performance - For the nine months ended September 30, 2019, the company's revenue was approximately RMB 168.5 million, a decrease of about 58.2% compared to RMB 403.0 million for the same period in 2018[6]. - The company's loss for the nine months ended September 30, 2019, was approximately RMB 10.4 million, a reduction in loss of 84.9% compared to RMB 69.1 million for the same period in 2018[6]. - The adjusted net loss for the nine months ended September 30, 2019, was approximately RMB 1.6 million, a decrease in loss of 97.0% compared to RMB 55.2 million for the same period in 2018[6]. - The gross profit for the nine months ended September 30, 2019, was RMB 60.5 million, down from RMB 145.7 million in the same period of 2018, reflecting a significant decline in revenue[7]. - The company reported a basic and diluted loss per share of RMB 0.03 for the nine months ended September 30, 2019, compared to a loss of RMB 0.21 for the same period in 2018[9]. - Operating loss for the nine months ended September 30, 2019, was RMB 17.3 million, compared to an operating loss of RMB 50.3 million for the same period in 2018[7]. - The total comprehensive loss for the nine months ended September 30, 2019, was RMB 10.4 million, a significant improvement from a loss of RMB 69.1 million in the same period of 2018[8]. - The company reported a comprehensive loss of RMB (10,433,000) for the nine months ended September 30, 2019[11]. - The company's total liabilities were RMB 1,593,727,000 as of September 30, 2019[11]. - The company's total assets were RMB 2,162,182,000 as of September 30, 2019[11]. Revenue Breakdown - For the three months ended September 30, 2019, the gaming business generated revenue of RMB 40,085 thousand, a decrease of 46.5% compared to RMB 74,839 thousand in the same period of 2018[27]. - The film and television business reported revenue of RMB 22,443 thousand for the three months ended September 30, 2019, down 39.3% from RMB 37,062 thousand in the same period of 2018[28]. - The total revenue for the group for the three months ended September 30, 2019, was RMB 62,528 thousand, a decrease of 44.1% compared to RMB 111,901 thousand in the same period of 2018[31]. - Game business revenue contributed RMB 131.2 million, down approximately 53.3% or RMB 149.9 million year-on-year, primarily due to the decline in existing game revenues[57]. - The film and television business generated approximately RMB 37.3 million, a decrease of about 69.4% or RMB 84.6 million compared to the same period last year, attributed to cyclical impacts and differences in revenue recognition[57]. Expenses and Cost Management - The company's cost for the nine months ended September 30, 2019, was approximately RMB 108.1 million, a reduction of about 58.0% from RMB 257.3 million in the previous year[58]. - Sales and marketing expenses for the nine months ended September 30, 2019, were approximately RMB 24.4 million, a decrease of about 71.5% compared to RMB 85.6 million for the same period in 2018[61]. - Administrative expenses for the nine months ended September 30, 2019, were approximately RMB 33.9 million, down 40.9% from RMB 57.4 million for the same period in 2018[62]. - Research and development expenses for the nine months ended September 30, 2019, were approximately RMB 21.9 million, a decrease of about 61.6% compared to RMB 57.0 million for the same period in 2018[63]. - The total employee compensation for the nine months ended September 30, 2019, was approximately RMB 57.0 million, compared to RMB 126.9 million for the same period in 2018[74]. Shareholder Information - As of September 30, 2019, the company had a total of 368,730,964 shares issued[89]. - Major shareholder Zhu Li holds 79,216,540 shares, representing 21.48% of the total shares[97]. - Wangfeng Management Limited, beneficially owned by Mr. Wang Jing, holds 66,576,160 shares, accounting for 18.06%[97]. - Starwish Global Limited holds 52,318,760 shares, representing 14.19% of the total shares[97]. - Fosun China Momentum Fund, L.P. holds 52,318,760 shares, also accounting for 14.19%[97]. - Mr. Wang Jing holds 5,500,000 shares, including 2,900,000 shares from stock options and 2,600,000 shares from restricted stock units[91]. - Mr. Chen Hao owns 3,575,841 shares, comprising 2,100,000 shares from stock options and 1,475,841 shares from restricted stock units[92]. - The company has a significant concentration of ownership, with major shareholders controlling over 70% of the shares[105]. Future Plans and Strategies - The company plans to continue its expansion in the gaming and film industries in China and other regions[18]. - The company plans to launch two mobile games in Japan, including "Fantasy & Puzzle" and "Ys VIII Mobile," with the latter expected to be released in 2020[16]. - The company plans to release the game "Dream of Jianghu" in South Korea, which underwent closed testing from September 17 to September 25, 2019[42]. - The company aims to enhance game development and publishing quality to launch more competitive games in the future[57]. - The company plans to fully utilize the reserved funds for overseas expansion by the end of 2019[84]. Corporate Governance - The board of directors did not recommend any dividend payment for the nine months ended September 30, 2019[6]. - The audit committee has reviewed the unaudited consolidated financial results for the nine months ended September 30, 2019[77]. - The company has complied with the principles and code provisions of the Corporate Governance Code as set out in the GEM Listing Rules during the nine months ended September 30, 2019[122]. - The Audit Committee was established on April 24, 2014, and is responsible for reviewing financial information, internal control procedures, and risk management systems[123].