ZQGAME(SZ:300052)2022-05-18 16:00Game Business Performance - The company's game business has seen a significant increase in R&D expenses, with multiple mobile games currently in development, leading to a temporary lack of economic benefits[5] - In 2021, China's gaming market generated actual sales revenue of CNY 296.51 billion, an increase of CNY 17.83 billion, representing a year-on-year growth of 6.4%[9] - The domestic gaming user base reached 666 million, showing a slight year-on-year growth of 0.22%[9] - The company aims to enhance its game offerings, focusing on patriotic and health-oriented online games, with titles like "抗战" and "亮剑"[55] - The company is focusing on the growth of its patriotic mobile games, with new players and online numbers for "Anti-Japanese War" and "Bright Sword" showing good growth, aiming to enhance the spread of red-themed games[56] - Multiple new games are in development, including "Shen Chu Shao Fang - Brewing Master" and "Tao Yuan Yi Meng," with several products already in the application process for licensing, expanding the company's market coverage[57] - The company is currently developing multiple projects aimed at enhancing product competitiveness, with all projects in the research phase[92] - The company plans to continue optimizing and enhancing game stability and playability in response to user feedback and market conditions[118] - The company reported a significant increase in revenue from game products, achieving a growth rate of 139.94% compared to the previous year[116] - The company faced challenges with several new game launches, which have not yet generated expected economic benefits due to market competition and internal restructuring[119] Financial Performance - The company's operating revenue for 2021 was ¥355,131,475.38, representing a 20.86% increase compared to ¥293,843,947.62 in 2020[42] - The net profit attributable to shareholders was -¥46,226,144.46, an improvement of 65.75% from -¥134,958,387.66 in the previous year[42] - The net cash flow from operating activities increased by 86.24% to ¥67,359,812.88, up from ¥36,168,560.45 in 2020[42] - The total assets at the end of 2021 were ¥1,071,752,666.18, a 1.64% increase from ¥1,054,418,691.45 at the end of 2020[42] - The company's basic earnings per share improved to -¥0.18 from -¥0.52 in 2020, reflecting a 65.38% increase[42] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥38,198,499.86, a 73.61% improvement from -¥144,767,828.08 in 2020[42] - The company reported a net profit for the year at -¥49.78 million, with significant asset impairment losses of ¥52.48 million impacting the results[95] - The company's cash and cash equivalents decreased by 49.91% to -¥29.90 million, compared to -¥68.36 million in the previous year[95] R&D and Innovation - The company emphasizes the importance of retaining high-quality technical talent, as the loss of core personnel could negatively impact core technology and operational performance[25] - The company reported a strong focus on technological innovation to meet evolving customer demands and industry standards[23] - Research and development expenses increased by 51.99% year-on-year to ¥54.57 million, representing 15.37% of total revenue, up from 12.22% in 2020[93] - The number of R&D personnel increased by 124.76% to 236, with R&D staff now accounting for 47.39% of the total workforce[92] - The company is investing in R&D for new gaming technologies, with a budget allocation of $5 million for the upcoming year[182] Cloud Services and IDC Business - The company operates in the cloud services sector, including IDC and broadband access services, facing rapid technological updates and risks associated with insufficient investment in transmission technology and equipment[23] - The IDC business market in China is expected to grow at a compound annual growth rate of 26.9% from 2019 to 2022, indicating strong demand and no signs of overcapacity[10] - The cloud service business generated ¥183,922,881.69, accounting for 51.79% of total revenue, with a year-on-year growth of 28.68%[76] - The total operating costs for the cloud services business were ¥126.85 million, which represented 70.66% of the total operating costs, reflecting a 52.92% increase from the previous year[85] - The company has established two high-level data centers in Shenzhen and Leshan, enhancing its cloud service capabilities and resource utilization efficiency[69] - The company is committed to building a new type of computing network system integrating data centers, cloud computing, and big data, enhancing its operational management capabilities[70] Market Risks and Challenges - The gaming industry faces risks from market competition and regulatory approvals, which could impact the company's performance if not managed effectively[16][17] - The digital twin business is a new and emerging concept, facing market risks due to consumer perceptions and intense competition from various industries[26] - The company acknowledges the challenges of product differentiation in the digital economy, as well as potential compliance issues with national regulations that could affect product functionality[27] - The competitive landscape in the cloud services and digital twin sectors is intensifying, necessitating strategic responses to maintain market position[26] - The gaming industry faces market risks due to high player expectations and rapid shifts in player preferences, which could impact performance[152] - Regulatory risks exist in the gaming sector, including the need for approvals for new games and virtual currency operations[152] - The cloud service business may encounter risks from changing industry regulations and increased competition, potentially affecting market share[155] Talent Management and Organizational Structure - The company recognizes the critical role of a stable and skilled workforce in driving growth and innovation in the rapidly evolving tech landscape[25] - The company is committed to enhancing its management system to stabilize its core talent team and ensure continuous talent development through training mechanisms and organizational reforms[162] - The company has implemented a stock option incentive plan in 2021 to attract and retain talent, aligning the interests of shareholders, the company, and employees[68] - The company plans to continue focusing on talent development as a key part of its growth strategy[74] Corporate Governance and Compliance - The company is committed to complying with government regulations to mitigate potential policy risks[161] - The company has established a performance evaluation and incentive mechanism for senior management[190] - The company aims to align shareholder interests with those of employees through the implementation of the stock option incentive plan[197] - The company confirmed that there were no significant risks identified during the supervisory activities of the Supervisory Board in the reporting period[200] - The company has a strategic plan to address potential competition with Baode Technology through business restructuring if necessary[176]