掌趣科技(300315) - 2024 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, and the financial report is true, accurate, and complete - Company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[3] - Forward-looking statements regarding future plans are uncertain and do not constitute commitments to investors[3] - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[3] Table of Contents This section lists the overall structure of the report, including important notices, company profile, management discussion and analysis, corporate governance, environmental and social responsibility, significant events, share changes and shareholder information, preferred shares, bonds, and financial reports Definitions This section provides definitions for common terms used in the report, including company abbreviation, reporting period, RMB yuan, IP, MMORPG, SLG, mini-games, AI, and AIGC - Reporting period refers to January 1, 2024, to June 30, 2024[6] - MMORPG is defined as Massively Multiplayer Online Role-Playing Game, and SLG is defined as Strategy Game[6] - Mini-games refer to new game product forms carried by mini-programs, characterized by no download, instant play, and light experience[6] - AI refers to Artificial Intelligence, and AIGC refers to AI-Generated Content[6] Part II Company Profile and Key Financial Indicators Company Profile Beijing Ourpalm Co., Ltd. is listed on the Shenzhen Stock Exchange, stock code 300315, with Liu Huicheng as its legal representative - Company stock abbreviation: Ourpalm, stock code: 300315[7] - Company's legal representative is Liu Huicheng[7] Contact Persons and Information The company's Board Secretary is Ji Jiuyun, Securities Affairs Representative is Xie Jingchao, contact address is Building 34, Block B, Shangdong Digital Valley, No. 8 Dongbeiwang West Road, Haidian District, Beijing, and email is ir@ourpalm.com - Board Secretary: Ji Jiuyun, Securities Affairs Representative: Xie Jingchao[8] - Company's email: ir@ourpalm.com[8] Other Information During the reporting period, the company's registered and office addresses changed, both now located at No. 8 Dongbeiwang West Road, Haidian District, Beijing, postal code 100193, while other information remained unchanged - Company's registered and office addresses changed to No. 8 Dongbeiwang West Road, Haidian District, Beijing during the reporting period[9] - Information disclosure and storage locations, registration status, and other relevant data remained unchanged during the reporting period[10][12][13] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 2.02%, but net profit attributable to shareholders decreased by 10.44%, and net cash flow from operating activities decreased by 47.38% Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (yuan) | Prior Year (yuan) | Change from Prior Year | | :--- | :--- | :--- | :--- | | Operating Revenue | 467,623,638.57 | 458,375,001.53 | 2.02% | | Net Profit Attributable to Shareholders | 138,853,898.70 | 155,031,926.26 | -10.44% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 119,011,205.52 | 119,122,820.53 | -0.09% | | Net Cash Flow from Operating Activities | 47,459,592.38 | 90,197,930.38 | -47.38% | | Basic Earnings Per Share (yuan/share) | 0.05 | 0.06 | -16.67% | | Diluted Earnings Per Share (yuan/share) | 0.05 | 0.06 | -16.67% | | Weighted Average Return on Net Assets | 2.87% | 3.29% | Decrease of 0.42 percentage points | | Period-End Indicator | Current Period-End (yuan) | Prior Year-End (yuan) | Change from Prior Year-End | | Total Assets | 5,374,990,403.99 | 5,231,690,411.99 | 2.74% | | Net Assets Attributable to Shareholders | 4,922,280,126.56 | 4,755,400,203.85 | 3.51% | - After the reporting period, the company repurchased and cancelled 13,157,244 restricted shares, accounting for 0.48% of total share capital, which does not affect owner's equity and operating performance[13] Differences in Accounting Data Under Domestic and International Accounting Standards The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or foreign accounting standards and Chinese Accounting Standards during the reporting period - Company's reporting period shows no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[14] - Company's reporting period shows no differences in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese Accounting Standards[15] Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 19.84 million yuan, primarily from fair value changes of financial assets, government grants, and disposal gains/losses of non-current assets Non-recurring Gains and Losses and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Non-current asset disposal gains/losses | 180,210.77 | | | Government grants recognized in current profit/loss | 966,362.58 | | | Fair value change gains/losses (financial assets and liabilities) | 19,126,078.19 | Mainly fair value change gains from trading financial assets and other non-current financial assets | | Gains/losses from entrusted investments or asset management | 152,060.84 | | | Other non-operating income and expenses | -1,474,729.74 | Mainly early lease termination penalties and donations | | Other non-recurring gains/losses | 947,461.77 | Mainly tax withholding fee refunds | | Less: Income tax impact | 54,751.23 | | | Total | 19,842,693.18 | | - Company does not classify non-recurring gains and losses as recurring items as per relevant regulations[17] Part III Management Discussion and Analysis Company's Main Business Activities During the Reporting Period The company focuses on the development, publishing, and operation of online games, especially mobile games, actively expanding into SLG and mini-game segments, and innovating around "AI+Games" and "AI+UGC" strategies - Company focuses on online game, especially mobile game, development, publishing, and operation, based on global R&D and operation[19] - Company actively expands into SLG game and mini-game segments, and innovates around "AI+Games" to promote "AI+UGC" strategy[20] - During the reporting period, company achieved operating revenue of 468 million yuan, up 2.02% year-on-year, mainly due to new mini-game product revenue[20] - Net profit attributable to listed company shareholders was 139 million yuan, down 10.44% year-on-year, mainly due to increased game promotion expenses and fluctuations in fair value changes of financial assets[20] - Company jointly developed an "AI Game Creation Platform" with Beijing Youmi Interactive Entertainment Technology Co., Ltd., and jointly launched the LayaAir 3 game engine with Beijing Laya Box Technology Co., Ltd[21] Industry Overview During the Reporting Period From January to June 2024, China's game market revenue was 147.27 billion yuan, up 2.08% year-on-year; user scale reached 674 million, up 0.88% - From January to June 2024, China's game market actual sales revenue was 147.27 billion yuan, a year-on-year increase of 2.08%[18] - China's game user scale reached 674 million people, a year-on-year increase of 0.88%[18] - China's self-developed games overseas market actual sales revenue was 8.55 billion USD, a year-on-year increase of 4.24%[18] - Mini-game revenue was 16.60 billion yuan, a year-on-year increase of 60.5%, with in-app purchase revenue increasing by 81.56%[18] Company's Main Business Activities The company specializes in the development, publishing, and operation of online games, particularly mobile games, having successfully launched multiple globally renowned titles and established a comprehensive global R&D and publishing system - Company focuses on the development, publishing, and operation of online games, especially mobile games[19] - Successfully launched "Miracle MU", "The King of Fighters '98 Ultimate Match Online", "Miracle MU: Awakening" and other quality games, with products covering China, Japan, Korea, Europe, the US, and Southeast Asia markets[19] - Company has established a professional and comprehensive global R&D and publishing system, with subsidiaries in Hong Kong, Japan, Korea, Singapore, and other regions[19] Overview of Operations The company steadily operates its game business, continuously refining mature products, and actively expanding into SLG and mini-game segments, while innovating around "AI+Games" and "AI+UGC" strategies - Company steadily operates its game business, continuously refining mature products, and actively expanding into SLG game and mini-game segments[20] - In innovative businesses, the company actively innovates around "AI+Games" and promotes the "AI+UGC" strategy, jointly developing an "AI Game Creation Platform" with Beijing Youmi Interactive Entertainment Technology Co., Ltd[21] - Company jointly launched the LayaAir 3 game engine with Beijing Laya Box Technology Co., Ltd[21] - As of the end of the reporting period, the company operated a total of 20 games[20] Analysis of Core Competencies The company's core competencies include excellent R&D and publishing capabilities, a diversified product matrix and sustainable delivery of quality games, a high-quality professional talent advantage, and outstanding international publishing and synergy capabilities - Company possesses excellent R&D strength, outstanding publishing capabilities, planning capabilities, numerical systems, technical engines, and rich experience[22] - Company has established a complete R&D management system in mainstream mobile game categories like MMO and card games, achieved initial success in the mini-game segment, and broken through into the SLG segment[22] - Company's senior management team is stable and efficient, with core personnel possessing strong technical development capabilities and extensive industry experience[23] - Company achieved excellent results in overseas markets with multiple games due to outstanding international publishing and synergy capabilities[24] Analysis of Main Business During the reporting period, the company's operating revenue increased by 2.02%, primarily due to increased revenue from mini-game projects, while operating costs and selling expenses also rose significantly Major Financial Data Year-on-Year Changes | Indicator | Current Period (yuan) | Prior Year (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 467,623,638.57 | 458,375,001.53 | 2.02% | Mainly due to increased revenue from mini-game projects | | Operating Cost | 104,239,543.44 | 94,572,564.68 | 10.22% | Mainly due to increased mini-game sharing costs | | Selling Expenses | 147,275,639.96 | 96,584,031.26 | 52.48% | Mainly due to increased market promotion expenses in current period | | Management Expenses | 61,124,054.44 | 73,602,803.11 | -16.95% | Mainly due to reduced severance pay and share-based payment expenses in current period | | Financial Expenses | -61,311,506.42 | -56,394,992.66 | -8.72% | Mainly due to increased interest income from USD deposits due to higher interest rate deposits in current period | | Income Tax Expenses | 4,748,843.81 | 23,648,330.70 | -79.92% | Mainly due to reduced current and deferred income tax in current period | | R&D Investment | 129,099,931.02 | 144,157,578.44 | -10.45% | Mainly due to reduced personnel costs from fewer employees | | Net Cash Flow from Operating Activities | 47,459,592.38 | 90,197,930.38 | -47.38% | Mainly due to increased distribution and business promotion expenses for new self-developed projects | | Net Cash Flow from Investing Activities | 169,679,888.24 | -1,731,333,383.25 | 109.80% | Mainly due to recovery of principal and returns from prior investments in current period | | Net Cash Flow from Financing Activities | -18,555,837.69 | -11,182,288.63 | -65.94% | Mainly due to repurchase and cancellation of some restricted shares from the 2022 restricted stock incentive plan | | Net Increase in Cash and Cash Equivalents | 200,228,559.23 | -1,575,488,249.50 | 112.71% | Mainly due to increased net cash flow from investing activities | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mobile Terminal Games | 437,373,372.77 | 101,591,706.31 | 76.77% | 2.60% | 10.71% | Decrease of 1.70 percentage points | - Company's top five game products each accounted for over 10% of game business revenue, with Game 1 revenue 68.17 million yuan, Game 2 revenue 65.71 million yuan, Game 3 revenue 65.26 million yuan, Game 4 revenue 64.99 million yuan, and Game 5 revenue 49.89 million yuan[27][28] - Among major overseas game revenues, Game 1 overseas revenue was 59.93 million yuan, accounting for 31.04% of the company's overseas game business revenue[30] Analysis of Non-Core Business During the reporting period, non-core businesses contributed significantly to total profit, with investment income accounting for 26.88% and fair value change gains/losses accounting for 11.60% Impact of Non-Core Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 38,597,537.31 | 26.88% | Mainly from long-term equity investments accounted for by equity method | No | | Fair Value Change Gains/Losses | 16,652,962.15 | 11.60% | Mainly from fair value change gains of trading financial assets and other non-current financial assets | No | | Asset Impairment | 114,740.74 | 0.08% | | No | | Non-operating Expenses | 1,488,680.59 | 1.04% | Mainly early lease termination penalties and donations | No | | Credit Impairment Losses | 1,701,888.09 | 1.19% | Mainly reversal of bad debt provisions for accounts receivable and other receivables | No | | Other Income | 1,913,824.35 | 1.33% | Mainly government grants and tax withholding fee refunds | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 2.74%, with significant increases in right-of-use assets, lease liabilities, and trading financial assets, while some liquid accounts decreased Significant Changes in Asset Composition (Period-End vs. Beginning of Period) | Item | Current Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 2,538,065,578.74 | 47.22% | 2,689,340,475.92 | 51.40% | -4.18% | | | Accounts Receivable | 143,519,371.98 | 2.67% | 189,909,241.92 | 3.63% | -0.96% | | | Right-of-Use Assets | 47,430,789.27 | 0.88% | 4,914,449.68 | 0.09% | 0.79% | Mainly due to new office building lease, increased by 865% | | Lease Liabilities | 36,854,532.28 | 0.69% | 912,976.83 | 0.02% | 0.67% | Mainly due to new office building lease, increased by 3,937% | | Trading Financial Assets | 117,966,592.19 | 2.19% | 77,071,297.00 | 1.47% | 0.72% | Mainly due to increased valuation of equity instrument investments and purchase of wealth management products in current period, increased by 53% | | Prepayments | 21,973,562.76 | 0.41% | 31,946,526.95 | 0.61% | -0.20% | Mainly due to reduced prepaid game sharing fees and rent/property fees, decreased by 31% | | Other Current Assets | 6,318,427.32 | 0.12% | 11,280,325.60 | 0.22% | -0.10% | Mainly due to reduced prepaid corporate income tax and deductible VAT in current period, decreased by 44% | | Long-term Deferred Expenses | 3,934,876.85 | 0.07% | 213,563.84 | 0.00% | 0.07% | Mainly due to increased renovation expenses in current period, increased by 1,742% | | Other Non-current Assets | 322,698,722.02 | 6.00% | 118,208,199.61 | 2.26% | 3.74% | Mainly due to increased bank time deposits over one year, increased by 173% | | Other Payables | 26,731,226.67 | 0.50% | 45,103,121.24 | 0.86% | -0.36% | Mainly due to repurchase of some restricted shares from the 2022 restricted stock incentive plan in current period, decreased by 41% | | Non-current Liabilities Due Within One Year | 10,308,058.86 | 0.19% | 4,309,415.70 | 0.08% | 0.11% | Mainly due to new office building lease, increased by 139% | | Other Current Liabilities | 4,681,341.42 | 0.09% | 7,081,375.17 | 0.14% | -0.05% | Mainly due to reduced unearned output VAT, decreased by 34% | | Other Non-current Liabilities | 4,733,021.91 | 0.09% | 2,798,193.66 | 0.05% | 0.04% | Mainly due to new game licensing fees in current period, increased by 69% | Financial Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gains/Losses in Current Period (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 77,071,297.00 | 15,190,763.84 | 90,811,325.00 | 65,177,510.93 | 117,966,592.19 | | Other Equity Instrument Investments | 40,246,172.14 | - | 20,000,000.00 | 9,464,520.83 | 48,410,192.30 | | Other Non-current Financial Assets | 214,991,530.27 | 1,462,198.31 | 19,987,518.23 | 723,635.89 | 235,899,360.37 | | Subtotal Financial Assets | 332,308,999.41 | 16,652,962.15 | 130,798,843.23 | 75,365,667.65 | 402,276,144.86 | | Financial Liabilities | 2,000,104.94 | 327,190.80 | 500,000.00 | - | 2,827,295.74 | - As of the end of the reporting period, the company had no restricted asset rights[36] Analysis of Investment Status During the reporting period, the company's total investment amounted to 130.80 million yuan, a year-on-year increase of 97.45%, with financial assets measured at fair value totaling 402.28 million yuan at period-end - Reporting period investment amount was 130,798,843.23 yuan, a year-on-year increase of 97.45%[37] Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (yuan) | Fair Value Change Gains/Losses in Current Period (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Ending Balance (yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 128,000,000.00 | - | - | - | 7,781,407.50 | Excess raised funds | | Equity Instruments | 518,628,734.69 | - | 20,000,000.00 | 9,464,520.83 | 40,628,784.80 | Own funds | | Funds | 327,304,835.65 | 1,462,198.31 | 19,987,518.23 | 723,635.89 | 235,899,360.37 | Own funds | | Wealth Management | 87,811,325.00 | 152,060.84 | 87,811,325.00 | 65,177,510.93 | 22,856,592.19 | Own funds | | Other | 68,000,000.00 | 15,038,703.00 | 3,000,000.00 | - | 95,110,000.00 | Own funds | | Total | 1,129,744,895.34 | 16,652,962.15 | 130,798,843.23 | 75,365,667.65 | 402,276,144.86 | -- | Overview of Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management Occurred (10,000 yuan) | Outstanding Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own funds | 3,907.61 | - | | Brokerage Wealth Management Products | Own funds | 2,273.52 | 2,280.58 | | Total | | 6,181.13 | 2,280.58 | Significant Asset and Equity Sales During the reporting period, the company did not sell any significant assets or equity - Company did not sell significant assets during the reporting period[39] - Company did not sell significant equity during the reporting period[39] Analysis of Major Holding and Participating Companies The company's main subsidiaries, including Beijing Tianma Shkong Network Technology Co., Ltd., Hainan Dongwang Xianfeng Network Technology Co., Ltd., and Ourpalm Entertainment (Hong Kong) Co., Ltd., contribute significantly to game development and publishing, with recent changes in consolidation scope having no major impact Major Subsidiaries and Associates with Over 10% Impact on Net Profit | Company Name | Company Type | Main Business | Registered Capital | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Tianma Shkong Network Technology Co., Ltd. | Subsidiary | Game development and publishing | 10 million yuan | 392,767,887.32 | 246,917,944.71 | 114,374,804.30 | 19,215,243.30 | 18,584,177.54 | | Hainan Dongwang Xianfeng Network Technology Co., Ltd. | Subsidiary | Game development and publishing | 1,213.89 million yuan | 1,763,517,266.99 | 1,687,619,099.57 | 25,387,398.77 | 52,633,128.96 | 47,410,397.77 | | Qingdao Zhangming Yuanxi Equity Investment Partnership (Limited Partnership) | Subsidiary | Equity investment | 100 million yuan | 123,755,420.48 | 123,754,420.48 | - | 14,066,371.49 | 14,066,371.49 | | Beijing Juyou Zhanglian Technology Co., Ltd. | Subsidiary | Game development and publishing | 1 million yuan | 708,496,662.19 | 34,095,429.40 | 71,128,342.25 | 20,875,195.93 | 19,902,414.77 | | Ourpalm Entertainment (Hong Kong) Co., Ltd. | Subsidiary | Game development and publishing | 250 million HKD | 942,873,021.53 | 493,934,533.84 | 101,192,590.20 | 53,086,346.52 | 52,383,242.50 | | Webzen Inc. | Associate | PC and mobile game development and publishing | 17,655.44 million KRW | 3,776,023,581.91 | 3,374,973,106.06 | 586,079,303.75 | 217,964,936.33 | 184,984,594.18 | Acquisition and Disposal of Subsidiaries During Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shanghai Ourpalm Letui Technology Co., Ltd. | Deregistered | No significant impact | | Tianjin Xingyu Technology Co., Ltd. | Deregistered | No significant impact | | Ourpalm (Hong Kong) Co., Ltd. | Established | No significant impact | | Xingyou (Hong Kong) Co., Ltd. | Established | No significant impact | Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - Company had no controlled structured entities during the reporting period[43] Risks Faced by the Company and Countermeasures The company faces risks such as intensified market competition, new game R&D and operation, industry regulatory policy changes, core personnel loss, and innovation business development falling short of expectations - Risk of intensified market competition: Company will continuously promote integrated R&D and operation, focus on quality products, and actively respond to market changes[43] - Risk of new game R&D and operation: Company actively responds through business focus, structural optimization, and improved R&D and operation efficiency[44] - Risk of industry regulatory policy changes: Company will actively monitor changes in laws, regulations, and industry policies to ensure business compliance[45] - Risk of core personnel loss: Company continuously improves talent acquisition, training, and incentive mechanisms to enhance team cohesion[46] - Risk of innovation business development falling short of expectations: Company will closely monitor AI technology development, thoroughly assess market demand, and cautiously advance innovation businesses[47] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period On May 13, 2024, the company held its 2023 Annual Online Performance Briefing via the Value Online platform to communicate with investors - On May 13, 2024, the company held its 2023 Annual Online Performance Briefing via the Value Online platform[48] "Quality and Return Dual Improvement" Action Plan Implementation Status The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - Company did not disclose a "Quality and Return Dual Improvement" action plan announcement during the reporting period[49] Part IV Corporate Governance Information on Annual and Extraordinary General Meetings Held During the Reporting Period During the reporting period, the company held its 2024 First Extraordinary General Meeting and 2023 Annual General Meeting, with investor participation rates of 9.1918% and 8.9031% respectively General Meeting Information During Reporting Period | Meeting Session | Meeting Type | Investor Participation Rate | Date Held | Disclosure Date | Meeting Resolution | | :--- | :--- | :--- | :--- | :--- | :--- | | 2024 First Extraordinary General Meeting | Extraordinary General Meeting | 9.1918% | March 25, 2024 | March 25, 2024 | "Resolution Announcement of the 2024 First Extraordinary General Meeting" (Announcement No.: 2024-009) | | 2023 Annual General Meeting | Annual General Meeting | 8.9031% | May 16, 2024 | May 16, 2024 | "Resolution Announcement of the 2023 Annual General Meeting" (Announcement No.: 2024-030) | Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - Company's directors, supervisors, and senior management had no changes in the reporting period[51] Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[52] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company implemented a restricted stock incentive plan in 2022, but due to not meeting the 2023 performance targets and the departure of some grantees, the company repurchased and cancelled 13,157,244 restricted shares - Company implemented a restricted stock incentive plan in 2022, with the 2023 performance target being a 10% operating revenue growth based on 2022 operating revenue[52] - Given that the 2023 performance targets for the equity incentive plan were not met and 2 grantees resigned for personal reasons, the company repurchased and cancelled 13,157,244 restricted shares that had been granted but not yet vested[52] - The repurchase price was 1.349 yuan/share, with the repurchase funds sourced from the company's own capital[52] - Company completed the repurchase and cancellation procedures for the aforementioned restricted shares on July 23, 2024[52] Part V Environmental and Social Responsibility Significant Environmental Issues The company and its subsidiaries are not classified as key pollutant-discharging entities by environmental protection authorities, and no administrative penalties were received for environmental issues during the reporting period - Company and its subsidiaries are not classified as key pollutant-discharging entities by environmental protection authorities[54] - During the reporting period, the company did not receive administrative penalties for environmental issues[54] Social Responsibility The company actively fulfills its social responsibilities, continuously strengthening the "Ourpalm Public Welfare" brand, supporting rural revitalization, conducting public welfare education activities, and fostering industry talent - Company continuously strengthens the "Ourpalm Public Welfare" brand, collaborating with Beijing Chengying Public Welfare Foundation and other professional public welfare organizations to support the national rural revitalization strategy[55] - Company conducted "Fun Towards Future" series of public welfare education visits and facilitated a 400,000 yuan donation of Diquiao children's calcium tablets to Pingshan County, Hebei Province[55] - Company's Party branch organized "Show Identity, Strengthen Party Spirit, Set an Example" July 1st Party Day activities and studied "Excerpts from Xi Jinping's Discourses on Comprehensively Strengthening Party Discipline" and other Party-mass learning and education activities[55] - Company enhanced industry-academia cooperation with universities and students, hosting multiple "Ourpalm Technology AIGC Training Camp" sessions for university students[55] Part VI Significant Matters Commitments During the reporting period, there were no unfulfilled or overdue commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself - Company's reporting period shows no commitments by the actual controller, shareholders, related parties, acquirers, or the company that were fulfilled during the period or overdue and unfulfilled as of the end of the reporting period[56] Non-Operating Fund Occupation During the reporting period, there was no non-operating occupation of listed company funds by controlling shareholders or other related parties - Company's reporting period shows no non-operating occupation of listed company funds by controlling shareholders or other related parties[56] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - Company's reporting period shows no irregular external guarantees[56] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - Company's semi-annual report was not audited[56] 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, thus no related explanations Board of Directors' Explanations on "Non-Standard Audit Report" for the Previous Year The company had no non-standard audit report during the reporting period, thus no related explanations Bankruptcy and Reorganization Matters During the reporting period, the company did not experience any bankruptcy or reorganization matters - Company's reporting period shows no bankruptcy or reorganization matters[56] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters, with other cases involving approximately 26.96 million yuan and no major impact on operations - Company had no significant litigation or arbitration matters in the current reporting period[56] Overview of Other Litigation Matters | Litigation (Arbitration) Basic Situation | Amount Involved (10,000 yuan) | Litigation (Arbitration) Progress | Impact on Company Operations | | :--- | :--- | :--- | :--- | | Total other litigation not meeting significant disclosure standards | Approximately 2,695.50 | Some cases have been withdrawn or judgments have become effective, some cases are still pending | No significant impact on company operations | - Company as plaintiff involved approximately 26.55 million yuan; company as defendant (or co-defendant) involved approximately 0.40 million yuan[57] Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - Company's reporting period shows no penalties or rectification situations[58] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or actual controller - Company's reporting period shows no issues regarding the integrity status of the company, its controlling shareholder, or actual controller[58] Significant Related Party Transactions The company had no significant related party transactions related to daily operations, asset or equity acquisition/disposal, joint external investment, or related party creditor-debtor transactions during the reporting period - Company's reporting period shows no significant related party transactions related to daily operations[58] - Company's reporting period shows no related party creditor-debtor transactions[59] - Company's reporting period shows no other significant related party transactions[61] Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, leasing matters, significant guarantees, significant daily operation contracts, or other significant contracts - Company's reporting period shows no entrustment situations[62] - Company's reporting period shows no significant guarantees[63] - Company's reporting period shows no other significant contracts[64] Explanation of Other Significant Matters The company's investments in Shenzhen Guojin Tianhui Venture Capital Enterprise and Hangzhou Junyi Venture Capital Partnership had their existence periods extended due to unexited projects, with no significant impact on operations - Company's investment in Shenzhen Guojin Tianhui Venture Capital Enterprise (Limited Partnership) had its existence period extended for two years[65] - Company's investment in Hangzhou Junyi Venture Capital Partnership (Limited Partnership) had its existence period extended for one year[65] - The extension of the partnership existence period is based on investment project conditions and market environment, and will not have a significant impact on the company's operating status[66] Significant Matters of Company Subsidiaries During the reporting period, there were no significant matters concerning the company's subsidiaries - Company's reporting period shows no significant matters concerning company subsidiaries[67] Part VII Share Changes and Shareholder Information Share Changes During the reporting period, the company's total share capital remained unchanged at 2,743,909,792 shares, with the proportions of restricted and unrestricted shares also remaining constant Share Changes (Unit: Shares) | Share Category | Number Before Change | Proportion | Increase/Decrease in Current Change (＋,－) | Number After Change | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 149,672,835 | 5.45% | - | 149,672,835 | 5.45% | | Of which: Shares held by domestic natural persons | 149,672,835 | 5.45% | - | 149,672,835 | 5.45% | | II. Unrestricted Shares | 2,594,236,957 | 94.55% | - | 2,594,236,957 | 94.55% | | Of which: RMB ordinary shares | 2,594,236,957 | 94.55% | - | 2,594,236,957 | 94.55% | | III. Total Shares | 2,743,909,792 | 100.00% | - | 2,743,909,792 | 100.00% | Restricted Share Changes (Unit: Shares) | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released in Current Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Liu Huicheng | 128,918,071 | - | - | 128,918,071 | Executive lock-up shares, equity incentive restricted shares | | Ji Jiuyun | 1,500,000 | - | - | 1,500,000 | Equity incentive restricted shares | | Ji Jinggang | 1,300,000 | - | - | 1,300,000 | Equity incentive restricted shares | | Wei Lai | 1,300,000 | - | - | 1,300,000 | Equity incentive restricted shares | | Cui Meiling | 630,225 | - | - | 630,225 | Executive lock-up shares, equity incentive restricted shares | | Jia Tangli | 310,050 | - | - | 310,050 | Executive lock-up shares, equity incentive restricted shares | | Huang Yingchun | 300,000 | - | - | 300,000 | Equity incentive restricted shares | | Equity incentive grantees other than directors and senior management | 15,414,489 | - | - | 15,414,489 | Equity incentive restricted shares | | Total | 149,672,835 | - | - | 149,672,835 | -- | Issuance and Listing of Securities During the reporting period, the company had no issuance or listing of securities - Company had no issuance or listing of securities during the reporting period[71] Shareholder Numbers and Shareholding At the end of the reporting period, the total number of common shareholders was 196,900, with Liu Huicheng holding 6.26% and China Minsheng Bank Co., Ltd. - Huaxia CSI Animation Game ETF holding 2.76% - Total common shareholders at the end of the reporting period: 196,900 households[71] Top 10 Shareholders' Shareholding (Excluding Shares Lent via Securities Lending) | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Liu Huicheng | Domestic natural person | 6.26% | 171,890,761 | 128,918,071 | 42,972,690 | | China Minsheng Bank Co., Ltd. - Huaxia CSI Animation Game ETF | Other | 2.76% | 75,832,798 | - | 75,832,798 | | Yao Wenbin | Domestic natural person | 2.14% | 58,700,073 | - | 58,700,073 | | Shanghai Pudong Development Bank Co., Ltd. - Guotai CSI Animation Game ETF | Other | 0.93% | 25,562,840 | - | 25,562,840 | | Industrial and Commercial Bank of China Ltd. - GF CSI Media ETF | Other | 0.74% | 20,192,050 | - | 20,192,050 | | Zhao Qicheng | Domestic natural person | 0.55% | 15,042,482 | - | 15,042,482 | | Hong Kong Securities Clearing Company Limited | Overseas legal person | 0.53% | 14,613,788 | - | 14,613,788 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | Other | 0.45% | 12,346,500 | - | 12,346,500 | | Li Shaoming | Domestic natural person | 0.26% | 7,264,489 | - | 7,264,489 | | Sun Wenli | Domestic natural person | 0.25% | 6,820,900 | - | 6,820,900 | - Among the top 10 shareholders, the company found no associated relationship or concerted action as defined by the "Measures for the Administration of the Acquisition of Listed Companies"[72] - Some shareholders holding over 5%, top 10 shareholders, and top 10 unrestricted shareholders participated in securities lending business[73] Controlling Shareholder or First Largest Shareholder and Their Concerted Parties' Cumulative Pledged Shareholding Reaching 80% of Their Total Holdings During the reporting period, the company's controlling shareholder or first largest shareholder and their concerted parties did not have cumulative pledged shareholding reaching 80% of their total holdings - Company's reporting period shows no situation where the controlling shareholder or first largest shareholder and their concerted parties' cumulative pledged shareholding reached 80% of their total holdings[74] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - Company's directors, supervisors, and senior management had no changes in shareholdings during the reporting period[74] Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - Company's controlling shareholder did not change during the reporting period[75] - Company's actual controller did not change during the reporting period[75] Part VIII Preferred Shares Preferred Shares During the reporting period, the company had no preferred shares - Company had no preferred shares during the reporting period[76] Part IX Bonds Bonds During the reporting period, the company had no bond-related matters - Company had no bond-related matters during the reporting period[77] Part X Financial Report Audit Report The company's semi-annual financial report was not audited - Company's semi-annual financial report was not audited[79] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2024, comprehensively presenting the financial position, operating results, and cash flows at the end of the reporting period Consolidated Balance Sheet As of June 30, 2024, the company's consolidated total assets were 5.37 billion yuan, with total current assets of 2.84 billion yuan and total non-current assets of 2.53 billion yuan Major Data from Consolidated Balance Sheet (Period-End Balance) | Item | Period-End Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 2,538,065,578.74 | 2,689,340,475.92 | | Trading Financial Assets | 117,966,592.19 | 77,071,297.00 | | Accounts Receivable | 143,519,371.98 | 189,909,241.92 | | Long-term Equity Investments | 1,505,123,245.74 | 1,470,702,402.57 | | Right-of-Use Assets | 47,430,789.27 | 4,914,449.68 | | Total Assets | 5,374,990,403.99 | 5,231,690,411.99 | | Contract Liabilities | 156,823,071.65 | 160,519,456.60 | | Lease Liabilities | 36,854,532.28 | 912,976.83 | | Total Liabilities | 452,710,277.43 | 476,290,208.14 | | Total Owners' Equity Attributable to Parent Company | 4,922,280,126.56 | 4,755,400,203.85 | Consolidated Income Statement In the first half of 2024, the company achieved total operating revenue of 467.62 million yuan, a year-on-year increase of 2.02%, while net profit was 138.85 million yuan, a year-on-year decrease of 10.44% Major Data from Consolidated Income Statement (2024 H1) | Item | 2024 H1 (yuan) | 2023 H1 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 467,623,638.57 | 458,375,001.53 | | Total Operating Costs | 381,707,329.73 | 353,627,226.25 | | Selling Expenses | 147,275,639.96 | 96,584,031.26 | | R&D Expenses | 129,099,931.02 | 144,157,578.44 | | Financial Expenses | -61,311,506.42 | -56,394,992.66 | | Investment Income | 38,597,537.31 | 27,193,386.25 | | Fair Value Change Gains | 16,652,962.15 | 36,869,403.51 | | Net Profit | 138,853,898.70 | 155,031,926.26 | | Net Profit Attributable to Parent Company Shareholders | 138,853,898.70 | 155,031,926.26 | | Basic Earnings Per Share (yuan/share) | 0.05 | 0.06 | | Diluted Earnings Per Share (yuan/share) | 0.05 | 0.06 | Consolidated Cash Flow Statement In the first half of 2024, net cash flow from operating activities was 47.46 million yuan, a year-on-year decrease of 47.38%, while net cash flow from investing activities significantly increased by 109.80% Major Data from Consolidated Cash Flow Statement (2024 H1) | Item | 2024 H1 (yuan) | 2023 H1 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 47,459,592.38 | 90,197,930.38 | | Net Cash Flow from Investing Activities | 169,679,888.24 | -1,731,333,383.25 | | Net Cash Flow from Financing Activities | -18,555,837.69 | -11,182,288.63 | | Net Increase in Cash and Cash Equivalents | 200,228,559.23 | -1,575,488,249.50 | | Cash and Cash Equivalents at End of Period | 873,260,343.89 | 1,155,439,792.80 | - Net cash flow from investing activities significantly increased by 109.80% year-on-year, mainly due to the recovery of principal and returns from prior investments in the current period[93] Company Overview As of June 30, 2024, the company's registered capital was 2,743,909,792.00 yuan, primarily engaged in information services, with changes in registered address and consolidation scope during the reporting period - As of June 30, 2024, the company's registered capital was 2,743,909,792.00 yuan[105] - Company primarily operates information services within the second category of value-added telecommunications services, including internet game operation, internet game publishing, and mobile game publishing[106] - In March 2024, the company's registered address changed to 1st Floor, Building 34, No. 8 Dongbeiwang West Road, Haidian District, Beijing[105] - Company's consolidated scope for the current period includes 43 subsidiaries, an increase of 2 and a decrease of 2 compared to the previous period[108] Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and relevant CSRC regulations, and are evaluated based on the going concern assumption - Company's financial statements are prepared according to the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the China Securities Regulatory Commission's "Disclosure Rules for Companies Issuing Securities No. 15 - General Provisions for Financial Reports (Revised 2023)"[110] - Company evaluated its going concern ability for 12 months from the end of the reporting period, finding no significant doubts about its ability to continue as a going concern[111] Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering financial instruments, impairment provisions, long-term equity investments, asset depreciation, revenue recognition, and share-based payments - Company determines specific accounting policies and estimates based on operating characteristics, mainly in financial instrument impairment, investment property depreciation, fixed asset depreciation, intangible asset amortization, revenue recognition principles, and right-of-use asset depreciation[112] - Company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[135] - Company measures loss provisions for accounts receivable from revenue-generating transactions and lease receivables from lease transactions at an amount equal to expected credit losses over the entire lifetime[142] - Company recognizes revenue when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the relevant goods or services, at the transaction price allocated to that performance obligation[194] Taxation The company's main taxes include value-added tax, urban maintenance and construction tax, and corporate income tax, with rates varying based on business type and registration location, and several subsidiaries enjoying tax incentives Major Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable sales/services income, real estate lease income | 3%, 5%, 6%, 9% | | Urban Maintenance and Construction Tax | Payable turnover tax | 5%, 7% | | Corporate Income Tax | Taxable income | 25%, 20%, 16.5%, 15% etc. | | Education Surcharge | Payable turnover tax | 3% | | Local Education Surcharge | Payable turnover tax | 2% | | Cultural Construction Fee | Advertising income | 3% | - Companies registered in Hong Kong have a profit tax rate of 16.5%[220] - Beijing Wanxie Technology Co., Ltd., Beijing Quwan Tiancheng Technology Co., Ltd., Beijing Haoyu Shangyou Information Technology Co., Ltd., Beijing Tianma Shkong Network Technology Co., Ltd., Beijing Tianji Qiyou Technology Co., Ltd., Beijing Shengtian Shangyou Network Technology Co., Ltd. and other subsidiaries enjoy high-tech enterprise income tax incentives, taxed at 15%[221][222] - Hainan Huoji Network Technology Co., Ltd. and Hainan Dongjing Chuangshi Network Technology Co., Ltd. registered in Hainan Free Trade Zone, with a corporate income tax rate of 15%[222] - Multiple subsidiaries qualify as small and micro-profit enterprises, enjoying income tax incentives, where the portion of annual taxable income not exceeding 1 million yuan is taxed at an effective rate of 5%[223] Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning-of-period balances, and current period changes for major items in the consolidated financial statements, with explanations for significant changes - Period-end monetary funds were 2,538,065,578.74 yuan, of which 569,517,796.68 yuan was deposited overseas[224] - Period-end trading financial assets significantly increased, mainly due to increased valuation of equity instrument investments and purchase of wealth management products, with a period-end balance of 117,966,592.19 yuan[225] - Period-end accounts receivable book value was 143,519,371.98 yuan, a decrease from the beginning of the period, mainly due to bad debt provision based on credit risk characteristics (aging)[227][230] - Period-end right-of-use assets significantly increased, mainly due to the lease of new office buildings, with a period-end book value of 47,430,789.27 yuan[260] - Period-end other non-current assets significantly increased, mainly due to increased bank time deposits over one year, with a period-end balance of 322,698,722.02 yuan[274] - Period-end other payables significantly decreased, mainly due to the repurchase of some restricted shares from the 2022 restricted stock incentive plan, with a period-end balance of 26,731,226.67 yuan[278] - Current period selling expenses significantly increased, mainly due to increased market promotion expenses, with a current period amount of 147,275,639.96 yuan[304] - Current period investment income significantly increased, mainly due to increased investment income from long-term equity investments accounted for by the equity method and other non-current financial assets held, with a current period amount of 38,597,537.31 yuan[309] R&D Expenses During the reporting period, the company's R&D expenses primarily consisted of game development costs, amounting to 129.10 million yuan, all of which were expensed R&D Expenses | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Game Development | 129,099,931.02 | 144,157,578.44 | | Total | 129,099,931.02 | 144,157,578.44 | | Of which: Expensed R&D | 129,099,931.02 | 144,157,578.44 | | Capitalized R&D | - | - | Changes in Consolidation Scope During the reporting period, the company's consolidation scope changed, with the deregistration of two subsidiaries and the establishment of two new Hong Kong subsidiaries Changes in Consolidation Scope | Name | Reason for Change | | :--- | :--- | | Shanghai Ourpalm Letui Technology Co., Ltd. | Deregistered | | Tianjin Xingyu Technology Co., Ltd. | Deregistered | | Ourpalm (Hong Kong) Co., Ltd. | Established | | Xingyou (Hong Kong) Co., Ltd. | Established | Interests in Other Entities The company has 43 subsidiaries primarily engaged in information services, and Webzen Inc. is a significant associate with a 20.45% stake, accounted for using the equity method - Company's consolidated scope for the current period includes 43 subsidiaries, primarily engaged in information services[108][334][335][336][337] - Webzen Inc. is a significant associate, with company holding 20.45% and accounting for it using the equity method[338] - At the end of the reporting period, the book value of the company's equity investment in Webzen Inc. was 1,445,857,906.31 yuan[339] Government Grants During the reporting period, government grants recognized by the company were mainly recorded under other income, amounting to 966,362.58 yuan, primarily including special enterprise awards and R&D investment post-subsidy funds Liability Items Involving Government Grants | Accounting Account | Beginning Balance (yuan) | New Grants in Current Period (yuan) | Amount Recognized in Non-operating Income in Current Period (yuan) | Amount Transferred to Other Income in Current Period (yuan) | Ending Balance (yuan) | Asset-Related/Income-Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 859,541.61 | - | - | 18,350.58 | 841,191.03 | Asset-related | Government Grants Recognized in Current Profit or Loss | Item | Accounting Account | Current Period Amount (yuan) | Prior Period Amount (yuan) | Asset-Related/Income-Related | | :--- | :--- | :--- | :--- | :--- | | Deferred income amortization | Other income | 18,350.58 | 18,350.58 | Asset-related | | Special enterprise awards | Other income | 360,000.00 | - | Income-related | | Enterprise R&D investment post-subsidy funds | Other income | 288,800.00 | - | Income-related | | Interest subsidies for encouraging service and technology exports | Other income | 127,025.00 | - | Income-related | | Fiscal and tax support funds | Other income | 120,000.00 | 220,000.00 | Income-related | | Job stabilization subsidies | Other income | 41,087.00 | 59,685.33 | Income-related | | Service trade statistics monitoring sample enterprise subsidies | Other income | 10,800.00 | 7,200.00 | Income-related | | Beijing Intellectual Property Office patent subsidies | Other income | 300.00 | - | Income-related | | Beijing Municipal Bureau of Commerce cultural industry funds | Other income | - | 1,450,000.00 | Income-related | | Trademark subsidies | Other income | - | 16,000.00 | Income-related | | Total | | 966,362.58 | 1,771,235.91 | | Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk, which are managed through credit policies, cash reserves, financing lines, and monitoring of foreign currency and interest rate levels - Company faces credit risk, liquidity risk, and market risk (including exchange rate risk and interest rate risk)[342] - Company has established appropriate credit policies and continuously monitors credit risk exposure, including accounts receivable balances and collection status[343] - Company continuously monitors short-term and long-term funding needs at the company level, ensuring ample cash reserves and obtaining financing lines from major financial institutions[345] - Company monitors foreign currency transactions and the scale of foreign currency assets and liabilities to reduce exchange rate risk, and continuously monitors interest rate levels to address interest rate risk[346] Disclosure of Fair Value The company's total assets continuously measured at fair value amounted to 402.28 million yuan, primarily including trading financial assets, other equity instrument investments, and other non-current financial assets, with fair value determined using various valuation techniques Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (yuan) | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | I. Continuous Fair Value Measurement | -- | -- | -- | -- | | (I) Trading Financial Assets | - | 22,856,592.19 | 95,110,000.00 | 117,966,592.19 | | (II) Other Equity Instrument Investments | 7,781,407.50 | - | 40,628,784.80 | 48,410,192.30 | | (III) Other Non-current Financial Assets | - | - | 235,899,360.37 | 235,899,360.37 | | Total assets continuously measured at fair value | 7,781,407.50 | 22,856,592.19 | 371,638,145.17 | 402,276,144.86 | | (IV) Other Non-current Liabilities | - | - | 2,827,295.74 | 2,827,295.74 | | Total liabilities continuously measured at fair value | - | - | 2,827,295.74 | 2,827,295.74 | - Company uses the closing price on the balance sheet date for Level 1 fair value measurements, both continuous and non-continuous[348] - For Level 3 fair value measurement items without market quotes, the company determines fair value using the market approach, applying methods such as price-to-earnings ratio, price-to-book ratio, discounted cash flow method, and approximate cost method[350] Related Parties and Related Party Transactions The company has no actual controller, and engaged in related party transactions with Webzen Inc. for IP sharing fees, copyright fees, an