G-bits(SH:603444)2021-08-12 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2021, reflecting a year-on-year increase of 15%[2] - The company reported a revenue of 5 million for the first half of 2021, reflecting a growth of 20% compared to the same period last year[21] - The company's operating revenue for the first half of 2021 reached ¥2,387,252,211.56, representing a 69.41% increase compared to ¥1,409,164,747.82 in the same period last year[30] - Net profit attributable to shareholders was ¥900,828,775.96, up 63.77% from ¥550,052,054.21 year-on-year[30] - The net profit after deducting non-recurring gains and losses was ¥705,152,640.59, reflecting a 41.40% increase from ¥498,700,263.67 in the previous year[30] - The net cash flow from operating activities was ¥1,032,036,060.25, a 29.34% increase compared to ¥797,914,998.48 in the same period last year[30] - The company's total assets increased by 13.12% to ¥6,094,494,990.23 from ¥5,387,665,710.80 at the end of the previous year[30] - The net assets attributable to shareholders rose by 3.40% to ¥3,932,314,711.39 from ¥3,802,961,389.06 at the end of the previous year[30] - Basic earnings per share for the first half of 2021 were ¥12.54, a 63.49% increase from ¥7.67 in the same period last year[34] - The company achieved a revenue of 2.387 billion yuan, representing a year-on-year growth of 29% due to the stable operation of "Wandao" and "Wandao Mobile" as well as the strong performance of new game "Yinian Xiaoyao"[128] User Engagement and Growth - User data showed an increase in active users, with a growth rate of 20% compared to the same period last year[2] - The Daily Active Users (DAU) for the mobile game "问道手游" reached 1 million, indicating a 15% increase year-over-year[19] - The overall user retention rate improved to 75%, up from 70% in the previous year, showcasing enhanced user engagement strategies[21] - As of June 30, 2021, the cumulative registered users of "Wandao Mobile" exceeded 48 million, with an average ranking of 19th on the App Store game bestseller list in the first half of 2021, peaking at 7th[93] - The new simulation casual game launched on June 1, 2021, achieved over 7 million new users within 12 hours and over 1 million concurrent users, without using paid user acquisition methods[95] - The idle game "A Thought of Immortality," launched on February 1, 2021, achieved an average ranking of 11th on the App Store game bestseller list in the first half of 2021, peaking at 5th, and received over 210,000 five-star reviews[96] - The PC version of "Gui Gu Ba Huang," launched on January 27, 2021, topped the Steam global bestseller list multiple times, with over 180,000 concurrent users and a cumulative registered user base exceeding 19 million as of June 30, 2021[97] - "Mole Manor" has surpassed 30 million registered users, while "Incredible Maze" has over 19 million, and "Dungeon Castle 2: Dark Awakening" (Android version) has over 9 million registered users[112] Market Strategy and Expansion - The company provided a forward-looking guidance, expecting a revenue growth of 10% to 15% for the second half of 2021[2] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition by the end of 2022[21] - The company is focusing on market expansion, targeting a 25% increase in market share in the gaming sector over the next year[2] - The company is exploring acquisition opportunities in the gaming sector to bolster its market position and expand its offerings[21] - The company has been actively involved in cultural and technological innovation projects, receiving support from government initiatives[48] - The company aims to continue its growth trajectory by leveraging its strong IP and expanding its market presence in the gaming industry[41] Research and Development - Research and development investments increased by 30% in the first half of 2021, aimed at enhancing technology capabilities[2] - The company's R&D expenses for the first half of 2021 were RMB 325 million, which accounted for 13.61% of its operating revenue[62] - The company has a strong R&D team with 476 personnel, representing 58.40% of the total workforce[62] - The company has developed a technology center focused on researching common and cutting-edge technologies in game development, aiming to enhance development efficiency and product quality[87] - The company has established a comprehensive big data system for game operations, enabling real-time monitoring and analysis of user behavior data, which enhances market responsiveness[115] - The company has developed predictive tools for retention rate, LTV, DAU, and revenue to optimize marketing strategies and improve operational efficiency[117] Product Development and Innovation - New product launches are anticipated to contribute an additional RMB 300 million in revenue by the end of 2021[2] - New product launches are expected to contribute an additional 10 million in revenue for the next fiscal year[21] - The company launched new games such as "Yin Nian Xiao Yao" and "Gui Gu Ba Huang (PC version)", contributing to revenue growth[31] - The company focuses on the creative planning, development, and commercialization of online games, aiming to provide "original, high-quality, and green" games[41] - The company has expanded its product matrix and enhanced its technological research and development capabilities over the years[42] - The gaming portfolio includes a diverse range of genres, reflecting the company's commitment to innovation and quality in game development[164] Technology and Infrastructure - The company implemented gravity sensor-based anti-cheat technology in "Wandao Mobile," effectively eliminating the impact of cheating tools during gameplay[71] - A distributed server architecture was introduced, allowing for dynamic adjustment of server lines to support up to 10,000 concurrent users without compromising data integrity[71] - The introduction of a high-concurrency game server framework enhanced server processing capabilities and reduced network latency, improving overall gaming experience[71] - The implementation of a Gamma space PBR linear rendering technique improved game quality while maintaining device compatibility[74] - The introduction of a new WebP image compression method has reduced client storage space by approximately 20%[76] Marketing and Brand Engagement - The company emphasizes user experience and has organized numerous online and offline events to engage with players, including the annual "Wandao Mobile" national PK competition since 2017[101] - The company has successfully implemented targeted advertising campaigns across platforms like Weibo, Douyin, and Tencent Ads, leading to rapid player growth during product launches[104] - The company has engaged well-known personalities as brand ambassadors, such as Zhang Ruoyun for "Wandao Mobile" and Song Zuer for "Incredible Maze," enhancing brand recognition[105] - The company has received recognition from major platforms like App Store and TapTap, with several games featured in their recommended lists, boosting visibility and downloads[107] - The company has leveraged user-generated content (UGC) and community engagement to enhance marketing effectiveness and player retention[110] Risk Management - Risk factors related to market volatility and industry competition were highlighted, advising investors to remain cautious[6] - The board confirmed that there are no non-operational fund occupations by controlling shareholders[6]