Giant Network(SZ:002558)2025-04-24 14:05Financial Performance - The company's operating revenue for 2024 was ¥2,922,846,402.21, a slight decrease of 0.05% compared to ¥2,924,173,672.43 in 2023[6]. - Net profit attributable to shareholders increased by 31.15% to ¥1,424,901,718.85 in 2024 from ¥1,086,440,305.95 in 2023[6]. - The basic earnings per share rose by 32.20% to ¥0.78 in 2024, compared to ¥0.59 in 2023[6]. - Total assets at the end of 2024 reached ¥14,742,575,985.33, reflecting a 10.26% increase from ¥13,370,515,051.64 at the end of 2023[6]. - The cash flow from operating activities decreased by 8.08% to ¥1,034,206,211.93 in 2024 from ¥1,125,072,143.78 in 2023[6]. - Total revenue for 2024 was approximately ¥2.92 billion, a slight decrease of 0.05% compared to ¥2.92 billion in 2023[57]. - Revenue from gaming-related business reached ¥2.92 billion, accounting for 99.85% of total revenue, with a year-on-year increase of 0.28%[57]. - Mobile online game revenue increased by 5.19% to ¥2.18 billion, representing 74.60% of total revenue[58]. - Domestic revenue was ¥2.91 billion, making up 99.52% of total revenue, with a marginal increase of 0.04%[58]. - The gross margin for gaming-related business was 87.58%, with a decrease of 1.55% year-on-year[59]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.40 RMB per 10 shares (including tax) to all shareholders, with no bonus shares issued[3]. - The company implemented a profit distribution plan for 2023, distributing a cash dividend of RMB 0.80 per 10 shares, resulting in a total cash dividend of RMB 151,789,773.68[153]. - The total cash dividends distributed during the reporting period amounted to RMB 416,692,953.62 (including tax)[155]. - The company's net profit attributable to shareholders for 2024 was RMB 1,424,901,718.85, with a parent company net profit of RMB 513,765,012.52, and distributable profits of RMB 4,122,368,775.88[157]. - The cash dividend total, including other methods, reached RMB 629,581,515.88, representing 100% of the profit distribution total[157]. - The cash dividend distribution plan is in compliance with the company's articles of association and shareholder resolutions[156]. Business Operations and Strategy - The main business of the company has shifted to the research, development, publishing, and operation of online games since April 2016, with no changes reported during the current period[15]. - The company emphasizes the importance of risk management and has detailed its future development outlook and strategies in the report[3]. - The company is actively developing new games, including "超自然行动组," which began paid testing in early 2025, and has received approval for a historical SLG game titled "五千年"[43]. - The company is focusing on expanding its overseas market presence through policy support and tax incentives for game exports[28]. - The company is committed to self-research and development, aiming to create blockbuster games while exploring new market opportunities[101]. Research and Development - The company has established an AI laboratory to enhance game development and operations, focusing on improving efficiency and innovation in gameplay[95]. - The R&D budget has been increased by 10% to support innovation in new technologies[135]. - The number of R&D personnel increased by 12.75% to 1,035, with a higher proportion of master's degree holders[69]. - Research and development expenses were approximately ¥691.45 million, accounting for 23.66% of total revenue, showing a slight decrease of 0.08%[70]. Market and User Engagement - The Chinese gaming market's actual sales revenue reached ¥325.783 billion in 2024, a year-on-year growth of 7.53%[26]. - The number of game users in China grew to 674 million, an increase of 0.94% year-on-year[26]. - User retention rates improved to 85%, reflecting the effectiveness of recent customer engagement strategies[132]. - The company reported a significant increase in user engagement, with a 25% year-over-year growth in active users[132]. Governance and Compliance - The company has a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder rights[107]. - The board consists of seven members, including three independent directors, ensuring compliance with legal requirements[110]. - The company has a dedicated audit committee, nomination committee, and compensation and assessment committee to improve decision-making efficiency[110]. - The company has established a balanced and effective governance structure, ensuring compliance with laws and regulations in all related transactions[169]. Corporate Social Responsibility - The company emphasizes corporate social responsibility, particularly in protecting minors and contributing to educational initiatives in impoverished areas[96]. - The company donated over 100,000 yuan worth of educational materials to support local youth education as part of its social responsibility initiatives[174]. - The company actively participates in public welfare activities, enhancing its corporate social responsibility awareness[174]. Financial Management - The company has established an internal control system to ensure compliance, asset security, and the integrity of financial reporting[164]. - The internal control evaluation report indicates that the total assets of the evaluated units account for 100.00% of the company's consolidated financial statements[166]. - The internal control audit report issued a standard unqualified opinion, confirming effective internal controls as of December 31, 2024[168]. Talent Management - The company has established a comprehensive talent development system, including plans for new graduates, new employee integration, and management development[151]. - The employee composition includes 1,035 technical personnel, 258 sales personnel, 215 administrative staff, and 33 financial personnel[148]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to 22.69 million yuan[139]. Challenges and Risks - The gaming industry faces regulatory risks, with potential changes in government policies that could impact business operations if not promptly addressed[97]. - Market competition is intensifying, with a saturated user base and rapid technological advancements, necessitating continuous innovation to retain market share[98]. - The company recognizes the risk of core talent loss and is focused on talent retention and development to maintain its competitive edge[99][100].