PWRD(SZ:002624)2022-08-12 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥3,923,301,537.63, a decrease of 6.73% compared to ¥4,206,582,889.92 in the same period last year[11]. - Net profit attributable to shareholders was ¥1,137,476,657.67, representing a significant increase of 341.51% from ¥257,633,579.12 in the previous year[11]. - The net profit after deducting non-recurring gains and losses was ¥670,548,739.89, up 1,653.68% from ¥38,236,623.98 year-on-year[11]. - The net cash flow from operating activities increased by 28.37% to ¥418,055,671.71, compared to ¥325,664,415.64 in the same period last year[11]. - Basic and diluted earnings per share were both ¥0.60, a 361.54% increase from ¥0.13 in the previous year[11]. - The weighted average return on equity was 10.98%, up from 2.40% in the same period last year, an increase of 8.58%[11]. - Total assets at the end of the reporting period were ¥15,584,732,819.60, a decrease of 8.54% from ¥17,039,505,936.95 at the end of the previous year[11]. - Net assets attributable to shareholders decreased by 12.64% to ¥8,989,266,689.72 from ¥10,290,047,984.60 at the end of the previous year[11]. Revenue Breakdown - Game business revenue for the period was ¥369,267.27 million, an increase of 22.20% year-on-year, while film and television business revenue was ¥11,989.06 million, a decrease of 83.56%[11]. - The company adjusted its overseas game business layout, resulting in a revenue increase of 1.58% after excluding the impact of changes in the consolidation scope[11]. - Game business revenue reached CNY 373,614.56 million, up 9.59% year-on-year, with net profit attributable to shareholders rising by 429.73% to CNY 118,258.76 million[26]. - The company sold its U.S. development studio and related local publishing teams, resulting in a one-time gain of approximately CNY 40,000 million, and adjusted game revenue excluding this impact increased by 22.20%[26]. Investment and Cash Flow - The net cash flow from investing activities decreased by 36.56% to approximately ¥662.76 million, mainly due to lower cash inflows from previous investments compared to the prior period[32]. - The net cash flow from financing activities showed a significant decline of 118.03%, primarily due to increased cash payments for dividends compared to the previous year[32]. - The company reported a 94.73% increase in investment income, amounting to approximately ¥384 million, mainly from the sale of subsidiaries[33]. - The company’s cash and cash equivalents decreased by 5.37% to ¥2,305,993,871.46, representing 14.80% of total assets, due to the net cash flow from operating, investing, and financing activities[38]. Game Development and Strategy - The gaming business has been a core focus since its establishment in 1997, with a strong emphasis on developing high-quality games across various platforms, including PC, mobile, and VR[17]. - The company has launched multiple successful global titles, including "DOTA2" and "CS:GO," solidifying its position in the esports market[17]. - The mobile game "Honkai: Star Rail" achieved the fourth position on the domestic iOS game sales chart, showcasing the company's innovation in game development[19]. - The company emphasizes a "content-first" marketing strategy, successfully integrating game releases with popular media to enhance brand recognition and market engagement[22]. - The company is focusing on overseas game business with a dual strategy of "localization overseas + domestic products going global," with several games launched in multiple international markets[28]. Talent and Development - The company maintains a strong focus on talent development, implementing a comprehensive mechanism for attracting, nurturing, and retaining talent to drive sustainable growth[23]. - The company has a talent retention strategy focusing on "internal training + external recruitment" to mitigate the risk of talent loss and ensure a strong talent pipeline[54]. - The company has developed a comprehensive mechanism for talent attraction, care, motivation, and assessment to maintain its competitive edge in the cultural and creative industry[54]. Environmental and Social Responsibility - The company initiated the "Planting Perfect" environmental project in 2021, involving employee participation in tree planting activities to enhance carbon sequestration[63]. - The company has established a special team to participate in initiatives aimed at protecting minors in the gaming industry[52]. - The company has implemented strict measures for user account real-name registration and login to comply with regulations aimed at protecting minors[52]. Corporate Governance and Structure - The company experienced a change in executive leadership with the appointment of a new co-CEO on March 28, 2022, following the resignation of the previous co-CEO[56]. - The company held its annual general meeting on May 16, 2022, with an investor participation rate of 39.84%[55]. - The company plans not to distribute cash dividends or issue bonus shares for the semi-annual report period[57]. Compliance and Risk Management - The company is actively responding to industry policy changes to ensure compliance and sustainable development[52]. - The company has not engaged in any derivative investments or significant asset sales during the reporting period[46][47]. - The company has no significant litigation or arbitration matters during the reporting period[68]. Financial Reporting and Accounting Policies - The financial statements prepared by the company comply with the requirements of the accounting standards and reflect the financial position, operating results, and cash flows accurately[127]. - The company recognizes goodwill in business combinations when the purchase price exceeds the fair value of identifiable net assets acquired[129]. - The company applies a systematic approach to amortize the adjusted carrying amount of impaired intangible assets over their remaining useful life[171]. - The company recognizes expected liabilities related to lawsuits and other contingencies when certain criteria are met, including the obligation being a current one and measurable[182].