PWRD(SZ:002624)2022-04-25 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥8.52 billion, a decrease of 16.69% compared to ¥10.22 billion in 2020[12]. - The net profit attributable to shareholders for 2021 was approximately ¥369.15 million, down 76.16% from ¥1.55 billion in 2020[12]. - The net cash flow from operating activities was approximately ¥1.10 billion, a decline of 70.27% from ¥3.69 billion in 2020[12]. - Basic earnings per share for 2021 were ¥0.19, a decrease of 76.25% compared to ¥0.80 in 2020[12]. - The total assets at the end of 2021 were approximately ¥17.04 billion, an increase of 9.88% from ¥15.51 billion at the end of 2020[12]. - The weighted average return on equity for 2021 was 3.51%, down from 15.24% in 2020, reflecting a decrease of 11.73%[12]. - Total revenue for the year was approximately ¥8.52 billion, a decrease of 16.69% compared to ¥10.22 billion in 2020[38]. - Game segment revenue was ¥7.42 billion, accounting for 87.12% of total revenue, down 19.77% from ¥9.25 billion in 2020[38]. - The company reported a non-recurring loss of ¥272.71 million due to a decline in fair value of film investments, impacting net profit[37]. - The company reported a significant increase in revenue for the first half of 2021, with a year-on-year growth of 25%[89]. - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% to 25% year-on-year[90]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2021, representing a year-over-year growth of 20%[113]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of ¥12.00 per 10 shares to all shareholders[3]. - The company distributed cash dividends of RMB 1.60 per 10 shares, totaling RMB 309,926,936.64, with the remaining undistributed profits carried forward to the next year[129]. - The total cash dividend amount, including other methods, was RMB 2,743,697,806.62, accounting for 100% of the total profit distribution[131]. - The company is committed to enhancing shareholder value, with plans to increase dividends by 10% in the next fiscal year[90]. Business Strategy and Development - The company is focusing on international expansion, with a strategic shift towards global markets for game distribution and development[20]. - The company is actively exploring the metaverse and cloud gaming, preparing for future technological upgrades and industry transformations[26]. - The company emphasizes a "content is king" strategy, focusing on high-quality game and film production to enhance user experience and market presence[25]. - The company is pursuing an "internationalization strategy" to enhance its global presence in the gaming and film industries, with a focus on localized development for overseas markets[75]. - The company is focusing on new game development and the metaverse, with projects like "Zhu Xian World" and "Zhu Xian 2" aimed at enhancing user experience[36]. - The company is committed to applying cutting-edge technologies such as VR, AR, AI, and cloud computing in game development to seize opportunities in the 5G cloud gaming era[80]. - The company is actively managing risks related to industry policy changes and has implemented measures to protect minors from gaming addiction[84]. Research and Development - R&D expenses increased to approximately 2.211 billion CNY, a 39.13% rise compared to the previous year, reflecting the company's commitment to innovation despite short-term impacts on performance[33]. - The company is investing heavily in R&D, with a budget increase of 30% for new technology development in 2022[90]. - Investment in new technology development reached 200 million, focusing on enhancing user experience and product innovation[158]. - The company aims to increase its investment in R&D by 15% in the upcoming fiscal year to support innovation[106]. Market and User Engagement - User data showed a total of 10 million active users by the end of Q2 2021, representing a 15% increase compared to the previous quarter[90]. - The company reported a significant increase in user engagement, with active users growing by 150.5% compared to the previous year[106]. - The user base grew to 120 million active users, an increase of 10% compared to the previous year[161]. Risk Management and Compliance - The company has outlined major risks and corresponding countermeasures in the report, emphasizing the importance of investor awareness regarding investment risks[2]. - The company has retained its accounting firm, Lixin Certified Public Accountants, for auditing services[11]. - The internal audit department supervises the company's internal controls and financial status, enhancing risk management[97]. - The company has a governance structure that complies with legal and regulatory requirements, ensuring independent decision-making[98]. Corporate Governance - The company maintains independence from its controlling shareholders in terms of personnel, assets, finance, organization, and business operations[98]. - The company has established an independent financial department and accounting system, ensuring compliance with legal and regulatory requirements[98]. - The board of directors underwent a restructuring, with new independent directors appointed to strengthen governance[104]. - The company’s governance practices are aligned with regulations such as the Company Law and the Securities Law[121]. Environmental and Social Responsibility - The company is committed to building green and efficient data centers to reduce operational energy consumption[142]. - The company has conducted two "Planting Perfect" volunteer tree-planting activities, with 100 trees planted at the Great Wall and a donation of 100 acres of vegetation to combat desertification in the Kubuqi Desert[148]. - The "Growth Scholarship" program has supported 40 outstanding students in Yunnan's remote areas since its establishment in 2018, helping them continue their education[153]. - The company allocated 5 million RMB for disaster relief following severe flooding in Henan, raising an additional 542.97 million RMB through employee donations[154]. Employee and Talent Management - The company maintains a talent-centric approach, continuously optimizing its talent management system to drive growth and innovation[29]. - The total number of employees at the end of the reporting period was 6,272, with 4,320 in game development and film production[125]. - The company has implemented a comprehensive training system to enhance employee skills and overall quality[128]. - The company has established a comprehensive talent management system to attract, nurture, and retain creative professionals, ensuring a strong talent pool[86]. Strategic Partnerships and Acquisitions - The company has established a strategic partnership with Valve Corporation to develop the Steam platform in China, enhancing its position in the esports market[25]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $200 million allocated for potential M&A activities[90]. - A strategic acquisition was announced, with the company acquiring a competitor for 500 million, expected to enhance its product offerings and market reach[158].