KINGNET(SZ:002517)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥2.375 billion, representing a 53.92% increase compared to ¥1.543 billion in 2020[24]. - The net profit attributable to shareholders for 2021 was approximately ¥577 million, a significant increase of 224.14% from ¥178 million in 2020[24]. - The net cash flow from operating activities reached approximately ¥501 million, marking a 393.96% increase from ¥101 million in 2020[24]. - The basic earnings per share for 2021 was ¥0.27, a 200% increase compared to ¥0.09 in 2020[24]. - The total assets at the end of 2021 were approximately ¥4.400 billion, a 24.12% increase from ¥3.545 billion at the end of 2020[24]. - Total revenue for 2021 reached ¥2,375,303,585.09, a year-on-year increase of 53.92% compared to ¥1,543,189,304.38 in 2020[61]. - Mobile games generated ¥2,247,762,402.38, accounting for 94.63% of total revenue, with a growth of 64.98% from ¥1,362,437,692.02 in 2020[61]. - Domestic revenue was ¥2,339,207,405.30, representing 98.48% of total revenue, up 63.58% from ¥1,429,980,358.55 in 2020[62]. - The company reported a significant decrease in sales expenses by 22.18% to ¥360,601,174.05, attributed to reduced marketing costs[70]. - The company reported a significant increase in revenue for 2021, achieving a total of 1.2 billion RMB, representing a year-over-year growth of 15%[104]. Shareholder Returns - The company did not distribute cash dividends or issue bonus shares during the reporting period[7]. - The company has not proposed a cash dividend distribution plan for 2021, despite having positive profits available for distribution to shareholders[143]. - The cash dividend policy stipulates that if conditions are met, at least 10% of the distributable profits for the year should be distributed in cash, or the cumulative cash distribution over the last three years should not be less than 30% of the average annual distributable profits[144]. Research and Development - The company invested 339 million CNY in R&D, accounting for 14.28% of its operating revenue, to enhance its R&D system and encourage innovation[43]. - The total R&D investment amounted to ¥339,302,755.72, representing an 8.27% increase from ¥313,376,069.01 in the previous year[76]. - Research and development expenses increased by 8.27% to ¥339,302,755.72, primarily due to higher employee compensation[70]. - The number of R&D personnel increased by 19.10% to 948 from 796 in the previous year, with the proportion of R&D personnel rising to 68.60%[76]. - The company has multiple ongoing R&D projects aimed at increasing revenue and enhancing brand presence, including "Project O" and "Code: Rebirth" which are in various stages of development[71]. Market Strategy - The company plans to continue its strategic investments and IP layout to support long-term development[10]. - The company is focusing on strategic investments in game studios to enhance its product line and create synergies with its distribution business[40]. - The company aims to explore opportunities in the metaverse, particularly in VR/AR investments, to position itself advantageously in future developments[58]. - The company is committed to exploring new business opportunities and adjusting its focus to adapt to rapid changes in the internet industry[45]. - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[118]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[5]. - The company maintains a strong commitment to corporate governance, ensuring compliance with all regulatory requirements[106]. - The company has established an independent financial department and a separate financial accounting system, ensuring compliance with accounting standards[109]. - The company has a clear asset ownership structure, with no funds or assets occupied by controlling shareholders or related parties[109]. - The company has a complete and independent organizational structure, with clearly defined responsibilities for each department[109]. Social Responsibility - The company engaged in social responsibility initiatives, including educational support and disaster relief efforts during the reporting period[11]. - The company is committed to enhancing its social responsibility, particularly in protecting minors online, and has participated in developing relevant standards[36]. - The "Civilization Cloud" project has covered 2,315 households and 5,919 individuals, showcasing the company's commitment to community development[169]. - The company has initiated the "Cloud Teaching" project to support education in remote areas, addressing the lack of resources and improving conditions for children[169]. - The company actively engages in corporate social responsibility, focusing on user value and community contributions as part of its strategic goals[167]. Employee Engagement - The company has established a comprehensive and feasible compensation management system, focusing on incentive-based pay distribution to balance internal equity and market competitiveness[140]. - The company has implemented a multi-faceted compensation incentive model to align employee value with company growth[140]. - The total number of employees at the end of the reporting period is 1,382, with 1,377 from major subsidiaries and 5 from the parent company[139]. - The professional composition includes 948 technical personnel, 205 production personnel, 99 sales personnel, 23 financial personnel, and 107 administrative personnel[139]. - The company has established a comprehensive training system, with 15,487 participants in online courses and a total of 5,893.42 hours of online learning in the reporting period[141]. Risk Management - The company faces regulatory policy risks, which could adversely affect operations if necessary licenses are not obtained or maintained[99]. - Market competition is intensifying, with increasing demand for online games and mobile applications, leading to a rapidly expanding market size[98]. - The company recognizes the risk of core talent loss, emphasizing the importance of retaining skilled personnel for sustainable development[99]. - The company has established a strong internal control system to ensure compliance and efficient operations across all business activities[99]. Investor Relations - The company conducted multiple investor relations activities throughout 2021, including meetings and roadshows to discuss business performance and governance[101]. - The company reported significant engagement with various institutional investors, including Shanghai Securities and Huatai Securities, indicating strong interest in its business operations[101]. - The company maintained a proactive approach to investor relations, with multiple updates and communications throughout the year to keep stakeholders informed[101]. - The company’s investor relations activities included detailed discussions on performance metrics and future outlook, reflecting a commitment to transparency[101]. Leadership Changes - The company experienced a change in senior management, with the resignation of the CFO and several board members due to work adjustments[116]. - The new CFO, Huang Zhenfeng, was appointed on June 30, 2021, to enhance the company's financial management[116]. - The management team has been restructured to align with the company's operational needs, with new appointments in key positions[116]. - The new management team is expected to drive growth and innovation in the company's product lines[118]. Compliance and Legal Matters - The company has not faced any administrative penalties related to environmental issues during the reporting period, demonstrating compliance with environmental regulations[166]. - The company is currently involved in several significant litigation cases, with one case involving a compensation amount of 250,000 yuan[188]. - The company has a pending case with a claimed amount of 1,000,000 yuan, which is currently under review[188]. - The company has committed to maintaining compliance with regulatory requirements amidst the changes in its supervisory board[116].