Summary of the 2020 Semi-annual Report of YOOZOO Games Co., Ltd.
Securities Code: 002174 Securities Abbreviation: YOOZOO Games Announcement Number:2020-055
Summary of the 2020 Semi-annual Report of YOOZOO Games Co., Ltd.
I. Important Tip
The summary of this semi-annual report comes from the full text of the annual report. To fully understand the Company's operating
results, financial situation and future development plan, investors should read the full text of the semi-annual report carefully in the
media designated by the China Securities Regulatory Commission (CSRC).
Other than the following directors, the other directors personally attended the Board of Directors meeting to review the semi-annual
report.
Name of director not present in Title of director not present in Reasons for not attending the Name of authorized
person person meeting in person representative
Non-standard Audit Opinion Prompt
□ Applicable √ Not applicable
Preplan for the distribution of common stock profits during the reporting period considered by the Board of Directors or the preplan
for the transfer of capital stock from the accumulation fund
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends, send bonus shares, and transfer of capital stock from the accumulation fund.
Preplan for profit distribution of preferred stock in this reporting period adopted by the resolution of the Board of Directors
□ Applicable √ Not applicable
II. Basic Information of the Company
1. Company profile
Stock abbreviation YOOZOO Games Stock code 002174
Stock exchange Shenzhen Stock Exchange
Contact person and contact information Secretary of the Board of directors Securities affairs representative
Name Xu Bin Zhu Mengjing
Building 2, Huaxin Business Center, Building 2, Huaxin Business Center, 711
Address 711 Yishan Rd., Xuhui District, Yishan Rd., Xuhui District, Shanghai,
Shanghai, China China
Tel. 021-33671551 021-33671551
E-mail ir@yoozoo.com ir@yoozoo.com
2. Major accounting data and financial indicators
Whether the Company needs to retroactively adjust or restate previous accounting data
□ Yes √ No
The same period of 2019
increase/decrease of current
Current reporting period Same period of 2019
reporting period
year-on-year
Operating income (RMB) 2,516,786,165.63 1,729,874,938.24 45.49%
Net profits attributable to the listed
494,758,040.06 407,064,873.82 21.54%
company shareholders (RMB)
Net profits attributable to listed company
shareholders after deducting non-recurring 350,987,306.87 316,513,584.56 10.89%
profits and losses (RMB)
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Summary of the 2020 Semi-annual Report of YOOZOO Games Co., Ltd.
Net cash flows from operating activities
546,869,184.81 64,188,501.70 751.97%
(RMB)
Basic earning per share (RMB /share) 0.55 0.47 17.02%
Diluted earning per share (RMB /share) 0.55 0.47 17.02%
Weighted average rate of return on equity 9.31% 8.55% 0.76%
The end of 2019
End of current reporting increase/decrease of the end
End of 2019
period of current reporting period
year-on-year
Total assets (RMB) 9,384,915,831.19 8,926,314,621.39 5.14%
Net assets attributable to the listed
5,678,858,141.86 4,948,930,985.29 14.75%
company shareholders (RMB)
3. The number of shareholders and the shareholding situation
Unit: share
Total number of preferred
Reporting the total number of
shareholders with voting rights
common shareholders at the end 80,805 0
restored at the end of the
of the period
reporting period (if any)
Shareholding situation of the top 10 shareholders
Condition of pledge or
Name of Nature of Shareholding Quantity of Number of shares holding freezing
shareholders shareholders ratio shareholding restricted sales conditions
Stock status Quantity
Domestic natural 29.31% 264,166,731 214,250,771 pledge 250,409,069
Lin Qi
person
Wang Qingwei Domestic natural 4.57% 41,177,479
person
Wang Qingyong Domestic natural 3.60% 32,438,319
person
Hong Kong
Securities
Foreign legal
Clearing 2.21% 19,939,643
person
Company Ltd.
(HKSCC)
Zhang Yunlei Domestic natural 1.27% 11,411,100
person
YOOZOO
Games Co., Ltd.
- the first phase
Other 1.24% 11,196,090
of the employee
stock ownership
plan
Cui Rong Domestic natural 1.10% 9,952,852 9,952,852
person
Repurchase
Special
Domestic
Securities
non-state-owned 0.95% 8,522,393
Account of
legal person
Yoozoo Games
Co., Ltd.
Industrial and
Commercial
Bank of China
Limited - Other 0.74% 6,662,356
Dongfanghong
Industrial
Upgrading
Flexible
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Summary of the 2020 Semi-annual Report of YOOZOO Games Co., Ltd.
Allocation of
Hybrid
Securities
Investment
Funds
Ping An Bank
Co., Ltd. -
Dongfanghong
Ruixuan
Regular
Opening and
Flexible Other 0.59% 5,304,294
Allocation of
Hybrid
Securities
Investment
Funds for Three
Years
Explanation of the
Mr. Wang Qingyong and Mr. Wang Qingwei are brothers and co-actors. It is not known whether
above-mentioned
there is a relationship among the other shareholders mentioned above, or whether they belong to
shareholder-related relationship or
the co-actors.
concerted action
Note on shareholders participating
in securities margin trading Not applicable
business (if any)
4. Change condition of controlling shareholders and actual controllers
Change in the controlling shareholders in the reporting period
□ Applicable √ Not applicable
No change in the controlling shareholder of the Company in the report ing period.
Change in the actual controllers in the reporting period
□ Applicable √ Not applicable
No change in actual controllers of the Company in the reporting period.
5. Table of the total number of preferred stock shareholders and the shareholding situation of the top 10
preferred stock shareholders of the Company
□ Applicable √ Not applicable
The Company does not have the shareholding situation of preferred stock shareholder during the reporting period.
6. Corporation bonds
Whether there is a company publicly issued and listed on the stock exchange, and the corporation bonds that have not expired or
expired in full on the date of approval of the semi-annual report
No.
III. Discussion and Analysis of Operation
1. Brief introduction to the operation during the reporting period
Whether the Company is required to comply with disclosure requirements for special industries
The main business of YOOZOO Games includes the development, distribution and operation of mobile games
and web games. During the reporting period, the Company achieved a total operating revenue of
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Summary of the 2020 Semi-annual Report of YOOZOO Games Co., Ltd.
RMB2,516,786,165.63, with a year-on-year increase of 45.49%; Wherein, the operating income was RMB1,305,
445, 555.19 in the second quarter, with a quarter-on-quarter increase of 7.77%; During the reporting period, the
total profit was RMB503,554,958.21, with a year-on-year increase of 19.86%; Net profit attributable to shareholders
of listed companies was RMB494,758,040.06, up 21.54% from the same period last year. Including mobile games
realized revenues of RMB2,035,110,559.94, with a year-on-year increase of 65.27%. The operating income in the
overseas market was RMB1,229,118,873.61, with a year-on-year increase of 21.76%. According to Sensor Tower,
the Company has been ranked Top 10 in global revenue of China mobile game publishers for seven consecutive
months in 2020, with May to July ranking 6th for three consecutive months.
The Company focuses on the development, distribution and operation of online games and continues to focus on
the Card Game and SLG Racetracks in product categories, steadily pushing forward the globalization and
IP-based management strategy.
I. Focus on the ‘Card game as the main, SLG as the auxiliary’
According to the mobile game section of Report on Game Research and Development Survey in 2020 jointly
released by 17173, Talking Data and Dianyu Culture Media, the monthly average active players in mobile games
reached a record high of 700 million in the first half of 2020, while the number of monthly active players of card
game increased most significantly, up to 47.1%.
The Company launched the card IP focusing on the "Junior" series around the card game racetrack, and built a
card game product matrix through a number of "Junior" series works including Junior Three Kingdoms (少年三国
志), Junior Journey to the West (少年西游记) and Junior Three Kingdoms II (少年三国志 2). The Company's
card game benchmark product, has had 100 million registered users worldwide since its launch in 2015. And 39
large expansion packs and 117 large version updates have been launched; and on this basis, Junior Three
Kingdoms II. was innovatively launched. Since its launch, the product has remained at the forefront of the
domestic App Store best-selling list and has been certified by Forbes World Records as "the most popular card
game brand in the three kingdoms", thus laying the Company's position in the card field. During the reporting
period, the total account statement of the Company's self-developed card products exceeded RMB 2 billion,
accounting for nearly 50% of the total account statement. Subsequently, the Company will continue "Junior"
series IP to launch the strategy card game Junior Three Kingdoms: Zero (少年三国志：零). The game is in the late
stage of testing, and its launch will consolidate the Company's layout on the card game racetrack. The Company
will continue to deepen the advantages of card racetracks by absorbing professionals, building partners and
category strength and expanding the global market.
For playing rules of SLG, the Company constantly summarizes the experience of inheritance. From the
accumulation of SLG products such as King (大皇帝) during web game period to the successful launch of SLG
mobile games The 36 Stratagems (三十六计) and GOT: Winter is Coming M. (权力的游戏 凛冬将至). On July
21, GOT: Winter is Coming M (权力的游戏 凛冬将至) was launched in the Asia-Pacific market and won the Top
10 in the best-selling list of Hong Kong, Macao and Taiwan and the Top 20 in the best-selling list of South Korea.
In the second half of the year, the Company has a reserve of SLG mobile game Infinity Kingdom (战火与永恒)
for European and American markets, and plans to launch it within the year.
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Summary of the 2020 Semi-annual Report of YOOZOO Games Co., Ltd.
II. The "Greater Asia Strategy" led by Japan and South Korea has shown early results
During the reporting period, according to the differentiation characteristics of different overseas markets, the
Company exported a number of self-developed and agency games overseas.
In view of the characteristic of the groups of Japanese players, which means they are mature, thus not following
the trend easily, and have strong consumption ability, the Company launched the simulation management game
Huawu Warring States (成り上がり～華と武の戦国, 华武战国) in the early stage, and the account statement
continued to rise after the product was launched for a year. During the reporting period, the Company launched
the agent MMORPG mobile game Searle Light (ステラアルカナ-愛の光と運命の絆, 塞尔之光) and
self-developed card mobile game Junior Three Kingdoms II (三国志ブラスト-少年ヒーローズ, 少年三国志 2)
in the Japanese market. After the products were launched, they were recommended by local Google Play and App
Store. According to the statistics of Sensor Tower, the Company was ranked 20th among the Japanese mobile game
publishers in June. In July, the Company launched the two-dimensional card mobile game Red: Pride of Eden (レ
ッド：プライドオブエデン) customized for the Japanese market. With the good performance of many products,
the Company has won steady growth in the Japanese market and further promoted its ranking to 15th.
For the South Korean market, the Company launched the agent MMORPG mobile game R5 (新神魔大陆) during
the reporting period. After the game was launched, it won the Top 10 of the best-selling list in the region and was
recommended by the editors of App Store and Google Play. The Company's self-developed card mobile game
Junior Three Kingdoms II (, 少年三国志 2) was launched in the South Korean market in mid-June.
Through differentiation competition, it is firmly ranked in the Top 15 of the South Korean game best-selling list,
with the highest result of 4th in the best-selling list. According to the statistics of Sensor Tower, Junior Three
Kingdoms II (少年三国志 2) won the Top 16 of China mobile game revenue in South Korea in the second quarter
of 2020, and the Company became the publisher of the Top 15 in the South Korean market in June.
In addition to its good performance in the markets of Japan and South Korea, the Company's agent card mobile
game Saint Seiya Awakening: Knights of the Zodiac (圣斗士星矢：觉醒) continues to maintain its good operation
in Europe, Latin America and other regions. It has long been at the forefront of the best-selling list of games in
Brazil, France and other areas, and has received more than 1,000 recommendations from all columns of Google
Play and App Store. Through continuous deep cultivation of card playing rules, and self-research and agency, the
Company will continue to create high-quality products and deepen the advantages of card game racetracks. Facing
the broader global market, the Company will set up a number of card mobile game products in the second half of
the year.
On July 21, the Company launched mobile game GOT: Winter is Coming M (权力的游戏 凛冬将至) in the
Asia-Pacific region. The product improved the title system and commander application on the basis of the China
National System, increasing the operability of the game. In the first week of its launch, the product won the Top
10 in the best-selling list of Hong Kong, Macao and Taiwan and the Top 20 in the best-selling list of South Korea.
Subsequently, the Company will also launch SLG mobile game Infinity Kingdom (战火与永恒) for European and
American markets. The product is currently in the testing stage and is planned to be launched within the year. The
Company will focus on in-depth exploration in the card and SLG fields, strengthen the advantages of its own
research and development and operation in this field, and provide more playable games for players.
III. IP Management
During the reporting period, the Company launched a turn-based RPG mobile game Myth of World (山海镜花)
with the theme of the Legendary Creatures of the Shan Hai Ching, a Chinese classical mythology ancient book
and record. In the first month of its launch, the Company received more than 8 million downloads and launched
related peripheral products. In the second half of the year, the Company also plans to launch Junior Three
Kingdoms: Zero (少年三国志：零), a new product of self-developed card games "Junior" series, and New Lost
Tomb (新盗墓笔记), an orthodox grave robbing theme mobile game authorized by Nanpai Sanshu, to implement
the inheritance and development of Chinese traditional culture into the products. On July 21, 2020, the Company
started the public beta of mobile game GOT: Winter is Coming M (权力的游戏 凛冬将至) in the Asia-Pacific
region (Hong Kong, Macao and Taiwan of China, Japan, South Korea and Southeast Asia). During the
pre-registration period, the products were recommended by all columns of Google Play and App Store as the
high-quality resource. In the first week of its launch, the product won the Top 10 in the best-selling list of Hong
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Summary of the 2020 Semi-annual Report of YOOZOO Games Co., Ltd.
Kong, Macao and Taiwan and the Top 20 in the best-selling list of South Korea.
The Company continues to deepen its IP management. In 2019, the Company successively launched Saint Seiya
Awakening: Knights of the Zodiac (圣斗士星矢：觉醒) a strategy card mobile game developed by Tencent and
genuinely authorized by Kurumada Masami Studio, in the regional markets of Hong Kong, Macao and Taiwan,
Southeast Asia, Europe and the United States, South Korea and other regions. Up to now, the game has reached
the top of the best-selling list of games in application stores of 20 countries and regions, and has remained at the
forefront of the best-selling list of games in Brazil, France and other areas for a long time; Web game GOT:
Winter is Coming M (权力的游戏 凛冬将至) started an overseas public beta in March 2019. At present, it has
launched the versions of 15 languages such as English, German, French and Portuguese, and has received six
global recommendations from Facebook.
In addition, the wholly-owned subsidiary of the Company - Shanghai Youzu Huyu Network Technology Co., Ltd.
has obtained the rights of The Three-Body Problem series novels in game development, distribution, adaptation
and derivative products. Subsequently, the Company will set up and develop products around The Three-Body
Problem IP.
Facing the upcoming 5G era, the Company is actively laying out cloud games, AR/VR, AI, electronic sports and
other fields. During the reporting period, through cooperation with Huawei Cloud, the Company actively carried
out the technical reserves of cloud games, launched a "YOOZOO Cloud Game Platform" based on Huawei ARM
cloud services, and launched 8 mobile games to realize point-and-play. In addition, the Company and Besttone
Holding Co., Ltd. have jointly cooperated with "5G VR Town" as the content integration platform to jointly lay
out 5G entertainment new formats. In the future, the Company hopes to form an interactive effect through
business cooperation between industries, provide better support for content creation and communication through
new technologies, deliver products containing Chinese culture to users, truly realize the in-depth integration of
mobile informationalization with all walks of life and people's lifestyle, and provide users with high-quality, novel
and smooth 5G application services and ecosystems.
At the same time, the Company is actively thinking about new anti-addiction rules to prevent teenagers from
indulging in online games. After the connections of the Company's distribution platform with various games, the
anti-addiction rules will be applied to all games forcefully to guide teenagers to enjoy the happiness brought by
games in a healthy way. We also cooperate with parents and launch the parent monitoring system, through which
parents can conduct the background management by technical means and set the daily game time and consumer
credit of children. A healthier environment for the growth of teenagers can be created by various kinds of
monitoring means.
2. Matters relating to financial reports
(1) A statement of changes in accounting policies, accounting estimates and accounting methods compared
with the previous accounting period
□ Applicable √ Not applicable
There were no changes in accounting policies, accounting estimates and accounting methods during the Company reporting period.
(2) A description of the retrospective restatement of the correction of major accounting errors during the
reporting period
□ Applicable √ Not applicable
No major accounting errors during the reporting period need to be restated retrospectively.
(3) A description of the changes in the scope of the consolidated statements compared with the previous
accounting period
√ Applicable □Not applicable
The company has lost control of Guangzhou Zhangtao Network Technology Co., Ltd. and Shanghai Youkun Information Technology
Co., Ltd. on June 30, 2019.
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