OURPALM(SZ:300315)2014-08-22 16:00Financial Performance - Total revenue for the reporting period reached ¥339,499,686.18, an increase of 164.41% compared to ¥128,398,743.85 in the same period last year[17]. - Net profit attributable to ordinary shareholders was ¥110,422,098.94, up 145.35% from ¥45,006,701.29 year-on-year[17]. - The net cash flow from operating activities was ¥89,694,585.81, representing a 140.98% increase from ¥37,220,173.35 in the previous year[17]. - Basic earnings per share increased to ¥0.09, a rise of 125.00% compared to ¥0.04 in the same period last year[17]. - Total assets at the end of the reporting period were ¥4,897,188,055.95, up 154.08% from ¥1,927,407,759.94 at the end of the previous year[17]. - The weighted average return on net assets was 5.49%, an increase of 0.50% from 4.99% in the previous year[17]. - The company reported a net profit after deducting non-recurring gains and losses of ¥105,897,430.63, which is a 154.34% increase from ¥41,636,786.61 in the same period last year[17]. - The total equity attributable to ordinary shareholders was ¥3,747,088,944.77, an increase of 145.82% from ¥1,524,313,334.92 at the end of the previous year[17]. Market and Product Development - The company has formed a product matrix including various self-developed mobile and web games, with several new titles set to launch in the second half of 2014[26]. - The company plans to continue focusing on the gaming sector, enhancing its product development and distribution capabilities[25]. - The mobile game segment generated revenue of 167.08 million CNY, with a growth rate of 89.22% compared to the previous year[36]. - The company completed acquisitions of Wanxie Technology and Shangyou Information, significantly enhancing its revenue from web and mobile games[33]. - The company plans to launch several self-developed mobile games in the second half of 2014, including "Zhi Zhang Jiang Shan" and "Mo Demon Dungeon" among others[39]. Acquisitions and Investments - The company invested in and acquired several firms, enhancing its capabilities in the iOS platform and expanding its market reach in North America and Europe[27]. - The acquisition of Hainan Dongwang Pioneer Network Technology Co., Ltd. involved a commitment of RMB 25,599.1 million, with 86.60% of the investment completed by the reporting period[55]. - The company completed the acquisition of 70% equity in Upstream Information Technology Co., Ltd. as of April 15, 2014[77]. - The company will issue shares and pay cash for the acquisition, with 50% of the consideration for Dongwang Pioneer being paid in cash and the remaining 50% in shares[80]. - The company aims to achieve a "1+1>2" effect through the integration of product operations and procurement channels post-acquisition[76]. Financial Management and Fundraising - The total amount raised from the non-public offering on June 5, 2014, was RMB 850,999,993.27, after deducting issuance costs of RMB 25,610,160.16, resulting in a net amount of RMB 825,389,833.11[56]. - The company has fully utilized the raised funds as of May 7, 2012, confirmed by the audit report[45]. - The company has made adjustments to its investment projects, including the termination of certain projects and reallocating funds to new initiatives[48]. - The company’s fundraising efforts have been verified by Da Hua Accounting Firm, ensuring the accuracy of the reported figures[56]. - The company has not reported any issues regarding the use and disclosure of raised funds[59]. Shareholder and Equity Information - The total number of shares increased to 1,234,618,017 after the implementation of the profit distribution and capital reserve conversion plan on May 23, 2014[108]. - Major shareholders include Yao Wenbin with 23.69% ownership, Huayi Brothers with 7.90%, and Ye Yingtao with 7.66%[112]. - The company’s shareholding structure remains stable with no foreign investment reported[107]. - The company’s financial condition and profitability are not expected to be adversely affected by the commitments made by major shareholders[101]. - The company reported a significant increase in shareholder equity due to strategic acquisitions[110]. Risk Factors and Strategic Focus - The company faces risks related to game product development, including rapid updates and changing player preferences, which could impact future performance if new successful games are not launched in time[21]. - The company is adjusting its market strategy in response to the competitive landscape of the domestic gaming community, which has seen increased participation from major players like Tencent and Baidu[51]. - The company has committed to not providing financial support or guarantees for incentive objects, ensuring compliance with the commitment as of June 30, 2014[97]. - The company has not encountered any significant changes in project feasibility or unmet expected returns as of the reporting period[55]. - The company plans to enhance integration after the acquisition of Dongwang Xianfeng, leveraging synergies between teams for future game projects[50].