KINGNET(SZ:002517)2023-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2023 was approximately ¥1.98 billion, a decrease of 1.65% compared to the same period last year[12]. - Net profit attributable to shareholders was approximately ¥724 million, representing an increase of 15.35% year-on-year[12]. - The net profit after deducting non-recurring gains and losses was approximately ¥676 million, up 13.31% from the previous year[12]. - Basic and diluted earnings per share were both ¥0.35, an increase of 16.67% year-on-year[12]. - The company's total revenue for the reporting period was ¥1,976,414,506.72, representing a decrease of 1.65% compared to ¥2,009,629,831.00 in the same period last year[28]. - The company reported a significant increase in overseas revenue, which rose by 1,496.81% to ¥29,039,107.98, compared to ¥1,818,567.85 in the previous year[29]. - The company reported a net profit of ¥613,352.40 from Kingnet Technology HK Limited, which accounted for 3.77% of the company's net assets[34]. - The company reported a total of CNY 62,952,149.12 in share-based payments recognized in equity[113]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥6.39 billion, an increase of 10.50% from the end of the previous year[12]. - As of June 30, 2023, total assets reached 6.388 billion yuan, reflecting a growth of 10.50% compared to the end of the previous year, and net assets attributable to shareholders increased by 10.45% to 4.939 billion yuan[17]. - The company's total equity reached CNY 4,934,109,054.54, up from CNY 4,541,910,248.03, reflecting an increase of about 8.63%[101]. - The total liabilities amounted to CNY 1,430,110,003.36, an increase from CNY 1,201,155,269.85, representing a growth of approximately 19.08%[101]. - Non-current liabilities totaled CNY 1,454,075,090.47, compared to CNY 1,239,043,669.09 at the start of the year, indicating an increase of approximately 17.3%[101]. - The company reported a decrease in employee compensation payable from CNY 85,970,764.39 to CNY 40,947,041.06, a reduction of about 52.4%[100]. Cash Flow - The net cash flow from operating activities was approximately ¥566 million, down 35.92% compared to the same period last year[12]. - The net cash flow from operating activities was ¥565,978,370.66, down 35.92% from ¥883,267,456.21 year-on-year, mainly due to a decrease in cash received from sales and services[28]. - Cash and cash equivalents decreased by 4.78% to ¥2,513,851,338.88, accounting for 39.35% of total assets, primarily due to reduced net cash flow from investment activities[33]. - The company reported a significant increase in cash received from other operating activities, totaling CNY 74,486,840.01, compared to CNY 77,016,232.57 in the previous year[110]. Research and Development - The company reported a research and development investment of 206 million yuan, accounting for 10.44% of its revenue[23]. - Research and development expenses increased by 8.46% to ¥206,392,329.12, compared to ¥190,285,699.84 in the previous year[28]. - The company focuses on enhancing its research and development capabilities to drive future growth[114]. Market and Competition - The domestic game market's actual sales revenue for the first half of 2023 was 144.263 billion yuan, a year-on-year decline of 2.39%, but a quarter-on-quarter increase of 22.2%[18]. - The company faced risks from intensified market competition in the gaming industry, emphasizing the need for differentiated product services and enhanced user experience[44]. - The company has established a strong competitive barrier in the market for its flagship games, including "Original Legend" and "Hot Blood Combined" among others[20]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of ¥1 per 10 shares to all shareholders[2]. - The company plans to distribute a cash dividend of 1 RMB per 10 shares, totaling 213,057,033.40 RMB, which represents 100% of the distributable profit[50]. - The total number of shares for the cash dividend distribution is based on 2,130,570,334 shares[50]. - The company has implemented an employee stock ownership plan, with a total of 5,041,785 shares held by 35 employees, representing 0.23% of the total share capital[54]. Legal and Regulatory Matters - The company is currently involved in several legal disputes, with one case involving a claim of approximately 48,152.74 thousand yuan[65]. - The company is also engaged in arbitration related to contract disputes, with claims amounting to 22,450 thousand yuan[66]. - The company is subject to risks from potential changes in gaming industry regulations, which could affect its domestic market operations[46]. Environmental and Social Responsibility - The company has implemented measures to reduce carbon emissions, aligning with national strategies for carbon neutrality and promoting green practices such as energy conservation and waste management[59]. - The company focuses on social responsibility, emphasizing user value and community engagement, while contributing to sustainable development goals[61]. - The company has a strategic focus on three pillars: "Play," "With," and "Buff," aiming to enhance project sustainability and coverage in its philanthropic efforts[62]. Accounting and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the accuracy of financial reporting[120]. - The financial statements reflect the company's ability to continue as a going concern for the next 12 months[119]. - The company’s accounting policies are aligned with the actual production and operational characteristics, ensuring relevant financial reporting[119].