ZQGAME(SZ:300052)2020-03-26 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.20 RMB per 10 shares to all shareholders, based on a total of 263,269,300 shares[7]. - The proposed cash dividend of RMB 0.2 per 10 shares totals RMB 5,265,386.00 for the fiscal year 2019, which represents 100% of the distributable profit[119]. - The cash dividend for 2018 was RMB 5,294,172.00, which accounted for 14.56% of the net profit attributable to shareholders[123]. - The cash dividend for 2017 was RMB 5,220,772.00, representing 10.38% of the net profit attributable to shareholders[123]. - The company has consistently maintained a cash dividend policy over the past three years, with dividends paid in cash only[123]. - The cash dividend for 2019 was the same as the previous two years, indicating a stable dividend policy[121]. - The total distributable profit for the year was RMB 178,939,268.17[119]. - The company did not propose any stock bonus or capital reserve conversion to share capital for the reporting period[119]. - The cash dividend distribution plan is in accordance with the company's articles of association and dividend management measures[119]. Financial Performance - The company's operating revenue for 2019 was ¥468,826,313.50, representing a 40.36% increase compared to ¥334,005,440.88 in 2018[18]. - The net profit attributable to shareholders for 2019 was ¥51,723,043.25, up 42.25% from ¥36,361,863.23 in 2018[18]. - The net cash flow from operating activities improved significantly to ¥3,072,912.19, a 156.20% increase from -¥5,467,977.03 in 2018[18]. - The total assets at the end of 2019 reached ¥1,438,349,150.43, marking a 17.14% increase from ¥1,227,887,863.96 at the end of 2018[18]. - The company maintained a basic earnings per share of ¥0.20, which is a 42.86% increase from ¥0.14 in 2018[18]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, which was ¥1,898,204.40, down 93.22% from ¥27,978,159.78 in 2018[18]. - The weighted average return on equity for 2019 was 6.46%, an increase of 1.72% from 4.74% in 2018[18]. - The total revenue for 2019 reached ¥468,826,313.50, representing a year-on-year increase of 40.36% compared to ¥334,005,440.88 in 2018[47]. Business Strategy and Development - The company aims to enhance management and innovation capabilities to improve user experience and increase user retention[5]. - The company is focused on developing new high-quality games to strengthen its core advantages and expand market share[5]. - The company has diversified its business model by developing both gaming and cloud service sectors, aiming for a dual-driven strategy[29]. - The company is actively expanding its cloud services, focusing on IaaS and cloud value-added services, including partnerships with major telecom operators[44]. - The company is integrating VR/AR technology with the tourism industry to develop a new type of cultural theme park[39]. - The company is focused on strategic acquisitions and asset restructuring to enhance its market position, while being aware of the associated uncertainties[6]. - The company has completed strategic partnerships in cloud security, cloud communication, and other cloud value-added services, expanding its product ecosystem[32]. - The company is currently developing a research center in Suzhou with an investment of 709.42 million[87]. Market and Competitive Risks - The company acknowledges the risks associated with the rapid development of the gaming industry and the need for substantial upfront investment in new game development[4]. - The company recognizes the competitive risks posed by both internal industry competition and external entertainment sectors[4]. - The company faces market risks due to rapidly changing player preferences and increasing competition in the gaming industry[112]. - Regulatory risks exist as the gaming industry is subject to strict government oversight, requiring licenses for mobile game operations[113]. - The company emphasizes the importance of thorough market research before launching new business ventures to minimize risks[7]. Talent and Human Resources - The company has implemented a stock incentive plan to retain and motivate high-quality talent in game development and management[6]. - The company emphasizes the importance of retaining high-quality talent to maintain its competitive edge in game development and operations[113]. - The company issued 431,700 restricted stock units to 12 employees to enhance motivation and performance[111]. - The company has achieved significant internal talent development, reducing the need for external purchases of technology systems[94]. Revenue Streams - The cloud service business generated ¥186,680,775.36, accounting for 39.82% of total revenue, with a significant year-on-year growth of 97.17% from ¥94,680,630.46[48]. - The mobile game segment saw revenue of ¥181,722,811.71, which is 38.76% of total revenue, reflecting a 96.07% increase from ¥92,681,784.77 in the previous year[48]. - The advertising service revenue surged to ¥35,116,692.06, a remarkable increase of 1,043.98% from ¥3,069,688.07[48]. - The company's total revenue from online gaming business reached ¥265,054,949.54, with a year-on-year increase of 36.32%[54]. - The gross profit margin for the online gaming business was 55.72%, which decreased by 8.40% compared to the previous year[54]. Acquisitions and Investments - The company invested 14,280 million in acquiring a 51% stake in Shanghai Meifeng Digital Technology Co., Ltd[87]. - The acquisition of a 51% stake in Shenzhen Sumo Technology Co., Ltd involved an investment of 2,186.63 million[88]. - The company reported a total of 10,000 million allocated for the development of a third-party payment platform[88]. - The company has completed the acquisition of 100% equity in Shenzhen Sumo for ¥49 million, with performance commitments for the years 2018, 2019, and 2020 set at ¥6 million, ¥9.5 million, and ¥11 million respectively[183]. Financial Management and Compliance - The company is actively monitoring the latest legal regulations to ensure compliance and reduce the risk of violations[5]. - The company has committed to not engage in high-risk investments with the remaining funds raised from the public offering within 12 months after replenishing working capital[133]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[136]. - The company has maintained transparency with the sponsor institutions regarding the use and return of raised funds[94]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 46,737, an increase from 41,550 at the end of the previous month[194]. - Shenzhen Baode Investment Holding Co., Ltd. held 27.37% of shares, totaling 72,163,262 shares, with 65,300,000 shares pledged[194]. - The largest individual shareholder, Lan Ping, held 2.00% of shares, totaling 5,270,000 shares, with an increase of 5,270,000 shares during the reporting period[194]. - The company’s total share capital is currently 263,671,800 shares, with 98.62% being unrestricted shares[190].