盛天网络(300494) - 2021 Q2 - 季度财报

Financial Performance - Total revenue for the first half of 2021 reached ¥619,878,609.89, an increase of 38.89% compared to ¥446,306,954.96 in the same period last year[22]. - Net profit attributable to shareholders was ¥70,037,291.14, representing an 80.66% increase from ¥38,768,217.64 year-on-year[22]. - Net profit after deducting non-recurring gains and losses was ¥68,877,109.31, up 89.86% from ¥36,277,321.69 in the previous year[22]. - Basic earnings per share rose to ¥0.2918, an increase of 80.68% from ¥0.1615 in the previous year[22]. - Total operating revenue for the reporting period reached ¥619,878,609.89, representing a year-on-year increase of 38.89% compared to ¥446,306,954.96 in the previous year[70]. - Revenue from the internet gaming segment was ¥333,893,875.54, accounting for 53.86% of total revenue, with a year-on-year growth of 31.46%[72]. - The internet marketing segment generated ¥280,210,351.73, which is 45.20% of total revenue, showing a significant year-on-year increase of 51.89%[72]. - The IP operation business saw a remarkable revenue increase of 296.84%, reaching ¥205,339,742.15, primarily due to the overseas launch of "Romance of the Three Kingdoms: Strategy Edition"[72]. - The gaming operation business revenue decreased by 36.44% to ¥128,554,133.39, mainly due to changes in revenue settlement methods for "Romance of the Three Kingdoms 2017" overseas[72]. - The company reported a total revenue of ¥280,210,351.73, which is a 51.89% increase compared to the previous year[88]. Cash Flow and Investments - Net cash flow from operating activities was ¥76,830,745.44, a significant increase of 263.39% compared to ¥21,142,804.13 in the same period last year[22]. - The total investment amount for the reporting period was ¥484,610,524.00, a significant increase of 12,015.26% compared to ¥4,000,000.00 in the same period last year, primarily due to the acquisition of minority shareholder rights[111]. - The cash and cash equivalents decreased by 964.13% to -¥129,512,977.65, mainly due to increased payments for equity acquisitions and share buybacks[104]. - The investment activities cash inflow decreased by 76.76% to ¥102,934,749.83 compared to the same period last year, mainly due to a reduction in the redemption of bank wealth management products[104]. - The company completed an equity investment of 10,000,000.00 CNY in Century Network (Hong Kong) Limited, acquiring a 100% stake[112]. - The company acquired Shanghai Tianxi Interactive Entertainment Network Technology Co., Ltd. for 360,000,000.00 CNY, also holding a 100% stake[115]. - The company reported a total investment of 370,000,000.00 CNY in the period, with an investment gain of 59,924,723.20 CNY[115]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,410,727,958.07, a decrease of 8.06% from ¥1,534,469,310.16 at the end of the previous year[22]. - Total liabilities increased to ¥617,953,724.13 in the latest reporting period from ¥419,071,995.00, reflecting a growth of approximately 47.5%[159]. - The company's total equity decreased to ¥792,774,233.94 from ¥1,115,397,315.16, a decline of approximately 29%[159]. - Current assets decreased to CNY 869,420,479.99 from CNY 1,033,630,150.41 year-over-year[157]. - Cash and cash equivalents were CNY 468,442,606.35, down from CNY 597,955,584.00[157]. - Accounts receivable increased to CNY 347,226,275.67 from CNY 217,108,238.06, indicating a growth of approximately 60%[157]. - Non-current assets totaled CNY 541,307,478.08, an increase from CNY 500,839,159.75[157]. - The total number of active users on the gaming platform reached 1,497,805 in Q1, with 1,383,949 active users in Q2[84]. Research and Development - The company has a strong focus on technology R&D, holding 12 invention patents and 127 software copyrights as of the report date[60]. - Research and development expenses rose by 12.30% to ¥26,579,907.93 compared to the same period last year[99]. - The number of R&D personnel increased to 345, representing 62.84% of the total workforce, up from 59.93% in the same period last year[100]. - Research and development expenses for the first half of 2021 were ¥26,579,907.93, compared to ¥23,667,825.76 in the previous year, showing an increase of about 12.1%[165]. Market and Industry Trends - The gaming industry in China showed resilience with a 20.71% year-on-year growth in actual sales revenue, reaching CNY 278.69 billion in 2020[28]. - The user base for cloud gaming is projected to grow significantly, with an expected increase from 1.63 million users in 2020 to 5.57 million by 2022[33]. - The cloud gaming market size is anticipated to expand from CNY 32.6 billion in 2020 to CNY 435.5 billion in 2023, reflecting a growing acceptance and willingness to pay among users[38]. - The IP adaptation mobile game market exceeded CNY 100 billion in revenue for the first time in 2020, indicating substantial market potential[40]. - The gaming industry is expected to continue its upward trajectory, supported by technological advancements and a growing user base[28]. Company Strategy and Partnerships - The company is focused on expanding its cloud gaming platform, leveraging advanced technologies to enhance user experience across various devices[44]. - The company aims to enhance its digital entertainment offerings through innovative platforms that cater to diverse gaming needs[44]. - The company has partnered with well-known enterprises such as Square Enix and Zhongyou Mobile to introduce popular game IPs, including "Xuan Yuan Sword" and "The Legend of Sword and Fairy"[48]. - The company plans to launch new game products to reduce reliance on existing key products, which currently include "Three Kingdoms 2017" and "Three Kingdoms: Strategic Edition"[121]. - The company has established strong partnerships with major game IP copyright holders, enhancing its IP acquisition channels and ensuring a rich resource pool for future projects[67]. Risks and Challenges - The company highlights risks related to product dependency, industry policy changes, and talent retention[5]. - The gaming industry faces regulatory risks, with a significant decrease in game approvals from 2,091 in 2018 to 1,314 in 2020[122]. - The company is expanding its cloud gaming platform but faces risks related to equipment procurement due to supply chain issues[123]. - The company emphasizes the importance of retaining core talent and has implemented equity incentives to attract and retain skilled personnel[124].