KINGNET(SZ:002517)2019-05-06 16:00Financial Performance - The company's operating revenue for Q1 2019 was ¥670,780,906.61, representing a 6.73% increase compared to ¥628,469,578.18 in the same period last year[3]. - Net profit attributable to shareholders decreased by 64.15% to ¥88,392,215.74 from ¥246,577,134.24 year-on-year[3]. - The net profit after deducting non-recurring gains and losses was ¥80,643,558.90, down 65.53% from ¥233,922,986.57 in the previous year[3]. - The diluted earnings per share were ¥0.04, a decrease of 63.64% from ¥0.11 in the previous year[3]. - The weighted average return on equity was 1.82%, down from 4.99% year-on-year, a decrease of 3.17 percentage points[3]. - The company expects a net profit for the first half of 2019, with a year-on-year decline of over 50%, estimating a range of ¥11,000,000 to ¥16,500,000[18]. - Net profit for the period was CNY 100,636,474.93, compared to CNY 279,447,747.40 in the previous period, indicating a decrease of approximately 64%[35]. - Basic earnings per share for the period were CNY 0.04, down from CNY 0.11 in the previous period, indicating a decline of about 63.6%[36]. Cash Flow - The net cash flow from operating activities was negative at -¥3,821,219.19, a decline of 107.02% compared to ¥54,411,616.60 in the same period last year[3]. - The total cash inflow from operating activities was ¥714,441,059.46, an increase of 9.66% compared to ¥651,421,831.91 in the previous period[41]. - The cash outflow from operating activities totaled ¥718,262,278.65, up from ¥597,010,215.31, indicating a significant increase of approximately 20.25%[41]. - The net cash flow from operating activities was a negative ¥3,821,219.19, contrasting with a positive cash flow of ¥54,411,616.60 in the previous year[41]. - The cash inflow from investment activities was ¥150,654,724.18, compared to ¥111,913,161.46 in the previous period, marking an increase of approximately 34.69%[42]. - The cash outflow from investment activities was ¥412,307,430.31, up from ¥342,553,014.76, reflecting an increase of about 20.34%[42]. - The net cash flow from investment activities was a negative ¥261,652,706.13, worsening from a negative ¥230,639,853.30 in the previous year[42]. - The cash inflow from financing activities was ¥80,731,697.35, down from ¥111,900,000.00, indicating a decrease of approximately 27.86%[42]. - The net increase in cash and cash equivalents was a negative ¥272,297,136.35, compared to a negative ¥139,645,819.62 in the previous period, showing a worsening cash position[42]. - The net cash flow from operating activities for Q1 2019 was ¥3,450,848.29, a significant improvement compared to a net outflow of ¥10,161,481.70 in the same period last year[44]. - Cash inflows from operating activities totaled ¥21,245,138.54, up from ¥3,337,954.01 in Q1 2018, indicating a strong increase in operational efficiency[44]. Assets and Liabilities - Total assets at the end of the reporting period were ¥6,128,772,670.47, an increase of 1.03% from ¥6,066,389,816.67 at the end of the previous year[3]. - The total amount spent on share repurchases was approximately ¥8.251 million, which is below the planned minimum of ¥200 million due to prioritizing cash for core business operations[15]. - The total current assets amounted to CNY 2,510,008,226.16, an increase from CNY 2,449,864,792.43 as of December 31, 2018, representing a growth of approximately 2.4%[24]. - The total liabilities decreased to CNY 900,107,884.24 from CNY 954,121,264.29, showing a reduction of about 5.7%[27]. - The total equity attributable to shareholders increased to CNY 4,906,657,659.69 from CNY 4,803,007,816.44, marking an increase of approximately 2.2%[28]. - The total assets as of March 31, 2019, were CNY 6,128,772,670.47, compared to CNY 6,066,389,816.67 at the end of 2018, indicating an increase of approximately 1.0%[28]. - The total liabilities stood at ¥922,623,365.99, remaining stable compared to the previous year[46]. - Total liabilities amounted to ¥954,121,264.29, with non-current liabilities at ¥31,497,898.30[47]. - The total owner's equity was ¥8,016,366,363.12, with a capital reserve of ¥5,868,230,640.79[49]. Expenses - Operating costs increased by 106.39% to ¥281,017,391.91 from ¥136,155,171.48, mainly due to changes in the game operation model[12]. - Research and development expenses rose by 51.30% to ¥105,166,642.39 from ¥69,509,038.69, attributed to increased R&D investments and the consolidation of new subsidiaries[12]. - The company reported a significant increase in sales expenses to CNY 124,983,430.66 from CNY 111,402,691.26, an increase of approximately 12.2%[34]. - The investment income for the period was CNY 8,623,154.72, down from CNY 14,661,616.90, reflecting a decrease of about 41.5%[34]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 74,710[6]. - The company reported a 62.75% decrease in minority shareholders' profit to ¥12,244,259.19 from ¥32,870,613.16, attributed to a decline in net profit from non-wholly owned subsidiaries[13]. Other Information - The company reported government subsidies amounting to ¥11,116,843.91 during the reporting period[4]. - The company recorded a 459.01% increase in other comprehensive income, reaching -¥13,160,503.19, primarily due to the implementation of new financial instrument standards[11]. - The company has not reported any significant changes in its investment activities during the quarter[44]. - The first quarter report for 2019 was not audited[51]. - The company’s financial position remains stable with no significant changes in equity or debt levels reported[46]. - The company is expected to continue focusing on improving cash flow and operational efficiency in the upcoming quarters[44].