KINGNET(SZ:002517)2022-08-18 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥2,009,629,831, representing a 103.49% increase compared to ¥987,572,692.56 in the same period last year[11]. - The net profit attributable to shareholders for the first half of 2022 was ¥627,331,172.33, up 126.41% from ¥277,072,215.05 in the previous year[11]. - The net profit after deducting non-recurring gains and losses was ¥595,798,236.07, reflecting a 193.69% increase compared to ¥202,865,927.70 in the same period last year[11]. - The basic earnings per share for the first half of 2022 was ¥0.30, a 130.77% increase from ¥0.13 in the same period last year[11]. - The total comprehensive income for the first half of 2022 was CNY 823,708,325.75, compared to CNY 367,296,608.54 in the same period of 2021, reflecting a growth of 124.1%[92]. - The company reported a net loss from investments of ¥3,526,016.04, which accounted for -0.42% of total profit[28]. - The company reported a significant increase in sales expenses, which reached CNY 395,017,029.49, compared to CNY 192,950,425.92 in the previous year, reflecting a rise of 105.4%[91]. Assets and Liabilities - The total assets at the end of the reporting period were ¥5,444,212,410.08, which is a 23.74% increase from ¥4,399,599,882.51 at the end of the previous year[11]. - The total liabilities increased, with accounts payable reaching ¥519,057,206.01, a rise of 3.47% from the previous year, attributed to increased game revenue sharing and marketing expenses[30]. - The company's total liabilities were CNY 930,365,326.73, up from CNY 650,557,127.03, which is an increase of approximately 42.9%[88]. - The total current liabilities amounted to CNY 877,800,992.31, compared to CNY 583,456,838.91, which is an increase of approximately 50.5%[88]. - The company's cash and cash equivalents increased to ¥1,895,087,101.17, accounting for 34.81% of total assets, up from 26.77% the previous year[29]. Revenue Sources - Mobile games accounted for 97.24% of total revenue, amounting to ¥1,954,111,133.16, reflecting a 116.11% increase year-on-year[25]. - The self-developed games in the overseas market generated actual sales revenue of 8.989 billion USD, a year-on-year increase of 6.16%[16]. - The flagship game "Blue Moon Legend" has accumulated revenue exceeding 4 billion yuan since its launch[17]. - The company’s mobile internet product revenue includes income from mobile game distribution and software application distribution, recognized based on actual consumption[162]. Research and Development - Research and development expenses rose by 32.57% to ¥190,285,699.84, attributed to increased employee compensation in the R&D team[24]. - The company has a robust R&D system, with R&D investment accounting for 14.28% of operating revenue in 2021, amounting to ¥339 million[21]. - The company is actively developing new products, including the 3D open-world adventure game "Sea Country Record" and the sci-fi stealth action game "Evotinction"[20]. Risk Management - The company has outlined potential risks and countermeasures in the report, emphasizing the importance of risk awareness for investors[2]. - The company faces risks related to regulatory policies, intensified market competition, and potential core talent loss[42]. - The company is actively monitoring industry regulations to minimize potential policy risks[48]. Corporate Governance - The company does not have any securities or derivative investments during the reporting period[37]. - The company has not experienced any changes in its board of directors, supervisors, or senior management during the reporting period[45]. - The company has implemented stock option incentive plans, granting a total of 19.35 million stock options at an exercise price of 5.05 CNY per share[47]. Environmental and Social Responsibility - The company reported a carbon emission of 523,880.73 tons of CO2 equivalent in 2021, primarily from daily office electricity consumption[53]. - The company is committed to ESG principles and has initiated various public welfare projects, focusing on education for disadvantaged children[54]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 48,141, with a significant shareholder, Wang Yue, holding 20.46% of shares, totaling 440,330,064 shares[79]. - The chairman, Jin Feng, increased his holdings by 21,240,000 shares during the reporting period, bringing his total to 231,915,484 shares[81]. Legal Matters - The company is currently involved in significant litigation, including a case with a claim amount of CNY 1 million related to intellectual property disputes[57]. - The company’s subsidiaries were involved in significant litigation during the reporting period[73]. Financial Reporting - The half-year financial report has not been audited, indicating a lack of external validation for the reported figures[56]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status[106].