OURPALM(SZ:300315)2019-04-25 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,970,323,556.32, an increase of 11.43% compared to ¥1,768,214,466.66 in 2017[31]. - The net profit attributable to shareholders was -¥3,149,933,630.14, a decrease of 1,293.63% from ¥263,894,420.28 in 2017[31]. - The net cash flow from operating activities increased by 26.36% to ¥845,902,517.48 from ¥669,422,510.52 in 2017[31]. - The total assets at the end of 2018 were ¥5,857,256,178.33, a decrease of 40.74% from ¥9,884,033,738.80 at the end of 2017[31]. - The company reported a basic earnings per share of -¥1.14, down 1,240.00% from ¥0.10 in 2017[31]. - The net profit attributable to shareholders for Q4 2018 was -¥3,666,281,695.75, indicating a significant loss in that quarter[32]. - The company recorded an impairment provision for goodwill of CNY 338,035,560, which had a substantial impact on its financial performance[50]. - The company reported an asset impairment loss of ¥3,681,545,226.76, which negatively impacted profit margins[78]. R&D and Market Strategy - The company emphasizes the importance of maintaining a high-quality and stable game development talent pool to sustain its competitive advantage[13]. - The company is committed to enhancing its R&D capabilities and responding quickly to market demands to mitigate risks associated with new game development and operations[12]. - The company acknowledges the intensified competition in the gaming industry and is focused on strengthening its R&D strength to maintain and expand its market position[11]. - The company aims to build a robust R&D system centered on product quality to achieve sustainable development and enhance its competitive strength[16]. - The company has established a strategic direction focused on product-centric development and enhancing its R&D capabilities[54]. - The company has optimized its organizational structure into three main business lines: R&D, operations, and platform support, to improve operational efficiency[55]. - The company plans to continue focusing on technology-driven and product-centered strategies, with over ten products currently under development, including "One Punch Man: The Strongest Man" which has received a game license[105]. Talent Management - The company has established a compensation management system to attract and retain talent, enhancing employee cohesion and core competitiveness[13]. - The company has adjusted its organizational structure and optimized talent to enhance operational management capabilities amid a challenging industry environment[104]. - The company has established a five-year labor contract and non-compete agreement with key personnel[126]. - The company has established a five-year labor contract and non-compete agreement for key personnel, preventing them from engaging in similar businesses during and two years after their tenure[134]. Compliance and Regulatory Environment - The company will actively monitor changes in laws and regulations to ensure compliance and mitigate risks associated with industry supervision[10]. - The company is focused on compliance with legal and regulatory requirements regarding related party transactions[126]. - The company has committed to fair and transparent dealings in all related party transactions, adhering to legal and regulatory requirements[134]. - The company has outlined measures to prevent any potential conflicts of interest arising from related party transactions[137]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the fiscal year 2018[6]. - The cumulative distributable profit for the parent company at the end of 2018 was -1,766,345,503.14 RMB[118]. - The company did not declare any cash dividends for the year 2018 due to negative distributable profits[120]. - The cash dividend distribution plan for 2018 was approved, stating no cash dividends, no stock dividends, and no capital reserve increase[120]. - The company’s profit distribution policy requires that cash dividends should not be less than 10% of the distributable profit for the year[111]. Market Expansion and Product Development - The company achieved significant success in overseas markets with titles like "Miracle MU: Awakening" and "The King of Fighters 98 Ultimate Match OL" and plans to strengthen international partnerships[48]. - The company is expanding its overseas distribution for existing products and plans to launch new titles in international markets in 2019[105]. - The newly launched games, "Miracle MU: Awakening" and "Big Boss 2," contributed significantly to revenue growth, with "Miracle MU: Awakening" achieving CNY 602,647,102.95 in revenue, accounting for 30.67% of game business revenue[56][60]. Financial Management and Investments - The company incurred a total of CNY 763,082,404.85 in operating costs, with a gross margin of 61.27%[63]. - Research and development expenses amounted to ¥465,258,407.43, a 22.75% increase compared to the previous year, representing 22.68% of total revenue[72]. - The company has completed strategic investments in Webzen Inc. with a total of RMB 130 million allocated for this purpose[95]. - The company has a remaining balance of RMB 63,615,975.87 in the special account for raised funds, which has been fully transferred for permanent working capital supplementation[96]. Corporate Governance and Shareholding Structure - The company completed a share transfer where the former controlling shareholder transferred 140,075,010 shares, representing 5.08% of the total share capital, to the chairman[172]. - Following the share transfer, the new ownership structure resulted in the company becoming one without a controlling shareholder[172]. - The company’s shareholding structure saw a significant increase in locked shares totaling 124,952,852 due to various factors including the transfer and performance compensation[179]. - The total number of ordinary shareholders at the end of the reporting period was 185,297, an increase from 180,682 at the end of the previous month[192].