Giant Network(SZ:002558)2022-12-04 10:00Financial Performance - In 2019, the company achieved operating revenue of 25.71 billion yuan, a year-on-year decrease of 3.08% after excluding Wan Jin Financial from the consolidated scope [3] - The net profit attributable to shareholders was 8.20 billion yuan, down 23.94% year-on-year, primarily due to increased R&D investment and late product launches [3] - Mobile game revenue reached 14.59 billion yuan, maintaining stability compared to 2018, with mobile games accounting for 56.74% of total game revenue [3] - Client-based games generated 9.95 billion yuan, a decline of 4% from 2018 [3] Shareholder Returns - The profit distribution plan for 2019 proposed a cash dividend of 1.3 yuan per 10 shares (tax included), with a total proposed dividend of 2.5 billion yuan [4] - The company has consistently distributed over 30% of its annual profit as dividends for four consecutive years [4] Strategic Initiatives - The company aims to build a strong support platform for core product development and enhance its international presence [4] - Three strategic focuses include: 1. Focusing on high-quality products and continuous investment in core areas 2. Strengthening the middle platform and innovating the R&D system 3. Combining self-developed and agency products to actively expand overseas [4] R&D and Talent Management - R&D investment exceeded 30% of revenue in 2019, with a shift from a subsidiary model to a studio model, and now to a track-based structure [7] - The company has undergone a youth-oriented adjustment in its core business team [5] Product Development and Market Strategy - In Q1 2020, the company reported a strong recovery with operating revenue of 6.92 billion yuan, a 2% year-on-year increase [5] - Key upcoming products include "New Journey Mobile Game" and "Ball Battle 2," both based on existing IPs [5] - The company is also exploring cloud gaming and VR/AR technologies, having invested in a cloud gaming service platform [8] Global Expansion Plans - The company recognizes the importance of overseas markets for growth, planning to combine short-term agency strategies with long-term self-developed product launches [8] - The strategy includes careful product design to ensure suitability for global markets [8] Collaboration and Future Outlook - The company has terminated restructuring plans with Playtika but sees potential for collaboration due to shared strategic interests and operational capabilities [9]