ZDDC(SH:600633)2021-03-30 16:00Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.08 per share, totaling CNY 101,258,441.84 (including tax) to shareholders, based on a total share count of 1,265,730,523 shares after excluding repurchased shares[6]. - The total amount for cash dividends, including the repurchase amount treated as cash distribution, is CNY 172,594,741.74 for the year 2019[6]. - The company has reported a share repurchase amount of CNY 71,336,299.90 for the year 2019, which is considered equivalent to cash dividends[6]. - The company has a cash dividend policy that mandates a minimum cash distribution of 20% of the distributable profits for the year, with a cumulative minimum of 30% over any three consecutive years[124]. - For 2019, the proposed cash dividend is 0.08 RMB per share, also totaling 101,258,441.84 RMB, pending shareholder approval[128]. - The company has cumulatively distributed approximately 1.589 billion RMB in cash dividends since its listing[124]. - In 2019, the net profit attributable to shareholders was 508,352,099.33 RMB, with a dividend payout ratio of 19.92%[128]. - The cash dividend for 2019 includes a buyback component amounting to 71,336,299.90 RMB, representing 14.03% of the total cash dividends[128]. Financial Performance - The company's operating revenue for 2019 reached ¥2,827,311,231.86, representing a year-on-year increase of 47.23%[24]. - Net profit attributable to shareholders was ¥508,352,099.33, reflecting a growth of 6.28% compared to the previous year[24]. - The net profit after deducting non-recurring gains and losses was ¥343,364,741.69, which is an increase of 38.10% year-on-year[24]. - The net cash flow from operating activities was ¥769,218,069.52, marking a significant increase of 71.36% from the previous year[24]. - Basic earnings per share for 2019 were ¥0.40, up 8.11% from ¥0.37 in 2018[27]. - The weighted average return on equity increased to 6.42%, up 0.41 percentage points from the previous year[27]. - Total assets at the end of 2019 amounted to ¥11,193,216,262.26, an increase of 11.02% compared to the previous year[24]. - The company's net assets attributable to shareholders were ¥8,038,562,877.51, reflecting a growth of 2.64% year-on-year[24]. Market and Industry Insights - In 2019, the actual sales revenue of China's game market reached 230.88 billion yuan, a year-on-year increase of 7.7%[41]. - The number of game users in China reached 640 million, growing by 2.5% year-on-year[41]. - The revenue from self-developed games in the domestic market was 189.51 billion yuan, up 15.3% year-on-year[41]. - The overseas revenue from self-developed games reached 11.59 billion USD, increasing by 21% year-on-year[41]. - The esports market revenue grew from 83.44 billion yuan in 2018 to 94.73 billion yuan in 2019, a year-on-year increase of 13.5%[41]. Investments and Projects - The company invested in 19 new projects during the reporting period, with a total investment amount of 451.57 million yuan, representing a year-on-year increase of 90.74%[41]. - The company’s long-term equity investments increased by 45.89% due to business expansion and increased external investments[44]. - The company initiated the construction of the ZheShu Cultural Industry Park with a total investment not exceeding RMB 860 million[62]. - The company launched the "Tianshu" media platform in September 2019, focusing on content aggregation and monetization[60]. - The company acquired 40% equity in Lingmeng Live for RMB 232 million, enhancing its resource synergy in the industry[55]. Risk Management and Governance - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting the importance of investment risk awareness[7]. - There are no reported instances of non-operational fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures in providing guarantees to external parties[8]. - The company has committed to avoiding competition with its controlling shareholders and ensuring compliance with legal and regulatory requirements regarding related party transactions[131]. - The company guarantees the establishment of a sound corporate governance structure and the independence of its board and management post-restructuring[136]. Cash Management and Financial Instruments - The company authorized the use of up to 150 million RMB of idle raised funds for cash management, effective from November 15, 2018, for one year[165]. - The company also authorized the use of up to 100 million RMB of idle raised funds for cash management, effective from November 15, 2019, for one year[165]. - The company achieved a total income of RMB 32.32 million from cash management products, including tax[167]. - The structured deposit products are primarily aimed at cash management for idle funds, with a focus on capital preservation and floating returns[173]. Acquisitions and Equity Changes - The company completed a non-public offering of 113,636,363 shares on December 16, 2016, raising RMB 1.95 billion for the construction of an internet data center project[142]. - The company completed the acquisition of 100% equity in an online hospital for 57.2 million RMB on September 25, 2019[159]. - The company invested 50 million RMB to acquire a 5.7471% stake in Yunqi Venture Capital as of August 6, 2019[161]. - The company acquired a 40% stake in Hangzhou Julun for RMB 23.2 million, with performance commitments of RMB 107.85 million and RMB 88.21 million for 2019 and 2020 respectively[182]. Research and Development - Research and development expenses amounted to ¥429,669,215.04, reflecting a 55.33% increase from ¥276,617,065.95 in the previous year[75]. - The total R&D investment was ¥512,420,255.10, accounting for 18.12% of operating revenue[76]. Corporate Strategy and Future Plans - The company plans to continue expanding its overseas market, particularly through the "mobile game overseas" strategy, in response to the growing demand for gaming products during the pandemic[96]. - The company aims to enhance its digital economy capabilities and commercial monetization, focusing on long-term competitive advantages[99]. - The company will further promote the construction of the Zhejiang Cultural Industry Park project to meet future strategic development needs[100]. - The company is committed to integrating resources and focusing on the development of digital culture and government digital economy empowerment[100].