G-bits(SH:603444)2019-04-09 16:00Financial Performance - The company reported a total revenue of 1.5 billion RMB for the fiscal year, representing a year-over-year growth of 20%[31]. - In 2018, the company's operating revenue reached ¥1,654,695,046.58, representing a 14.91% increase compared to ¥1,440,007,667.91 in 2017[38]. - The net profit attributable to shareholders was ¥722,971,754.93 in 2018, an 18.58% increase from ¥609,712,730.30 in 2017[38]. - The net cash flow from operating activities was ¥904,606,052.40, up 11.83% from ¥808,947,485.24 in 2017[38]. - The company's total assets increased by 27.50% to ¥4,008,214,957.17 at the end of 2018, compared to ¥3,143,580,718.17 at the end of 2017[38]. - The company achieved a total revenue of ¥1,654,695,046.58, representing a year-on-year growth of 14.91%[177]. - The net profit attributable to shareholders was ¥722,971,754.93, reflecting an 18.58% increase compared to the previous year[177]. - Operating costs decreased by 2.38% to ¥128,410,167.06, while sales expenses dropped by 16.76% to ¥133,716,035.30[178]. - Research and development expenses increased by 17.65% to ¥287,016,546.16, indicating a focus on innovation[178]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 100.00 RMB per 10 shares to all shareholders, based on the total share capital on the equity registration date for the 2018 profit distribution plan[12]. - The company has not proposed any capital reserve conversion to increase share capital in the profit distribution plan[12]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[11]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[14]. - The company has not violated decision-making procedures for external guarantees[14]. - The board of directors and senior management have confirmed the authenticity and completeness of the annual report[10]. Market and Product Development - The registered user base increased to 50 million, with a 15% increase compared to the previous year[31]. - The company expects a revenue guidance of 1.8 billion RMB for the next fiscal year, indicating a projected growth of 20%[31]. - New product launches are anticipated to contribute an additional 300 million RMB in revenue, with a focus on mobile gaming[31]. - The company is investing 200 million RMB in R&D for new technologies and game development in the upcoming year[31]. - Market expansion efforts include entering Southeast Asian markets, targeting a 10% market share within two years[31]. - The company is exploring potential acquisitions to enhance its portfolio, with a budget of 500 million RMB allocated for this purpose[31]. Risk Management - The report includes detailed descriptions of industry and market risks that the company may face in the future[14]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements in the annual report[13]. - The company has a comprehensive risk statement addressing potential future development risks in the industry[14]. Research and Development - The company has a strong independent R&D capability, which is crucial for the quality and stability of its network games[67]. - The company invested a total of 724 million CNY in R&D over the past three years, with R&D expenses as a percentage of revenue being 14.79%, 16.94%, and 17.35% respectively[69]. - As of December 31, 2018, the company had 297 R&D personnel, accounting for 53.13% of the total workforce[69]. - The company continues to focus on innovation and has a strong management team with extensive experience in game development[69]. User Engagement and Marketing - The company plans to enhance its marketing strategies, allocating 100 million RMB for digital marketing campaigns[31]. - The company has established a comprehensive user data warehouse system to track user behavior, including registration, login, recharge, and consumption, enhancing data analysis capabilities[101]. - A real-time computing framework has been built to allow market personnel to adjust advertising strategies based on real-time data, improving operational efficiency[102]. - The company actively engages with players through online and offline events to gather feedback and improve game offerings[111]. Game Performance and Recognition - The mobile game "Wandao Mobile" ranked an average of 26th on the iPhone game bestseller list, peaking at 11th[66]. - The game "Greedy Cave 2" topped the iPhone paid game list for 29 consecutive days after its launch in November 2018[66]. - The game "Crossing Star Arc" achieved the number one spot on the TapTap download list on its launch day[66]. - "Wandao Mobile" received multiple industry awards, including "Most Popular Game" at the OPPO 2018 Developer Conference[122]. - "不思议迷宫" achieved significant recognition, including the "Best Original Mobile Game Award" at the 2017 Golden Jingle Awards and the "Best Game Level Design Award" at the 2017 CGDA[130].