2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Wuhu Sanqi Interactive Entertainment Network Technology
Group Co., Ltd.
2019 Semi-annual Report
August 2019
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Section I Contents and Interpretation
Table of Contents
Section I Contents and Interpretation ........................................................................................................................................................ 2
Section II Company Profile and Key Financial Indicators ........................................................................................................................ 6
Section III Business Overview ................................................................................................................................................................ 10
Section IV Discussion and Analysis of Operation Status ........................................................................................................................ 16
Section V Important Events ..................................................................................................................................................................... 35
Section VI Equity Changes and Shareholders ......................................................................................................................................... 40
Section VII Financial Report ................................................................................................................................................................... 47
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Definitions
Term means Definition
CSRC means China Securities Regulatory Commission
SZSE means Shenzhen Stock Exchange
Wuhu Shunrong Auto Parts Co., Ltd./Wuhu Shunrong Sanqi Interactive
The Company/Company/Listed Company/Sanqi
means Entertainment Network Technology Co., Ltd./Wuhu Sanqi Interactive
Interactive Entertainment
Entertainment Network Technology Group Co., Ltd.
Shanghai Sanqi Interactive Entertainment means Sanqi Interactive Entertainment (Shanghai) Technology Co., Ltd.
Company Law means Company Law of the People’s Republic of China
Securities Law means Securities Law of the People’s Republic of China
Articles of Association of Wuhu Shunrong Auto Parts Co., Ltd./Articles
of Association of Wuhu ShunrongSanqi Interactive Entertainment
Articles of Association means
Network Technology Co., Ltd./Articles of Association of Wuhu Sanqi
Interactive Entertainment Network Technology Group Co., Ltd.
RM B/RM B 10,000 means Chinese yuan/10,000 Chinese yuan
Reporting Period means From January 1st, 2019 to June 30th, 2019
End of Reporting Period means June 30th, 2019
Clientless or browser kernel-based micro-client games that are based on
web development technologies and utilize standard protocols as basic
Browser games means
transmission modes. Game users can play browser games directly
through an Internet browser
Games that are downloaded via mobile network and run on mobile
M obile games means
phones or other mobile terminals.
RPG means Role playing game
ARPG means Action role playing game
SIM means Simulation game
SLG means Strategy game
STG means Shooting game
MMO means M assive M ultiplayer Online
MOBA means M ultiplayer Online Battle Arena
Shanghai M okun means Shanghai M okun Digital Technology Co., Ltd.
Jiangsu Zhiming means Jiangsu Zhiming Network Technology Co., Ltd.
Tibet Xintai means Tibet Xintai Culture M edia Co., Ltd.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Anhui Vogue Entertainment means Anhui Vogue Entertainment Network Technology Co., Ltd.
Vogue Entertainment International means Vogue Entertainment International Limited
G-M EI Network means G-M EI Network Technology Co., Ltd.
Guangzhou Sanqi means Guangzhou Sanqi Network Technology Co., Ltd.
Guangzhou Xingzhong means Guangzhou Xingzhong Information Technology Co., Ltd.
Anhui Xuhong means Anhui Xuhong Information Technology Co., Ltd.
Anhui Sanqi means Anhui Sanqi Network Technology Co., Ltd.
Jiangsu Aurora/Aurora Network/Jiangsu Aurora
means Jiangsu Aurora Network Technology Co., Ltd.
Network
Shanghai Yingtong means Shanghai Yingtong Network Technology Co., Ltd.
Wisdom Entertainment International means Wisdom Entertainment Online International Limited
Wisdom Game International means Wisdom Game Online International Limited
Shanghai Guanhang means Shanghai Guanhang Network Technology Co., Ltd.
Anhui Jiashang means Anhui Jiashang Network Technology Co., Ltd.
Chengdu Shengge Times Network Technology
means Chengdu Shengge Times Network Technology Co., Ltd.
Co., Ltd.
Beijing Shangheng means Beijing ShanghengJiatian Network Technology Co., Ltd.
Jiangsu Jiaqu means Jiangsu Jiaqu Network Technology Co., Ltd.
Shanghai Zhiren means Shanghai Zhiren Culture M edia Co., Ltd.
Tibet Taifu means Tibet Taifu Culture M edia Co., Ltd.
37 Games Entertainment Co., Ltd. means 37 Games Entertainment Limited
Shanghai M obile Game means Shanghai ShouyouTianxia Digital Technology Co., Ltd.
Anhui Guanyu means Anhui Guanyu Culture M edia Co., Ltd.
Tibet Yaotong means Tibet Yaotong Network Technology Co., Ltd.
Tibet Shengge means Tibet Shengge Network Technology Co., Ltd.
Guangzhou Sanqi Interactive Entertainment means Sanqi Interactive Entertainment (Guangzhou) Technology Co., Ltd.
Guangzhou Huoshanhu means Guangzhou Huoshanhu Information Technology Co., Ltd.
KhorgasQianyu means Khorgos Entertainment Network Technology Co., Ltd.
KhorgasXinghui means KhorgosXinghui Network Technology Co., Ltd.
KhorgosXinrui means KhorgosXinrui Network Technology Co., Ltd.
Top Increase means Top Increase Global Limited
KhorgasSanqi means KhorgosSanqi Entertainment Venture Capital Co., Ltd.
Anhui Aurora means Anhui Sanqi Aurora Network Technology Co., Ltd.
Guangzhou Jisheng means Guangzhou Jisheng Network Technology Co., Ltd.
Anhui Wanhu means Anhui Wanhu Information Technology Co., Ltd.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Zhuhai M iaohu means Zhuhai M iaohu Network Technology Co., Ltd.
Zhuhai Shangjie means Zhuhai Shangjie Network Technology Co., Ltd.
Huai’anSanqiYijian Pan-Entertainment Asset M anagement Center
Huai’anSanqi means
(Limited Partnership)
Anhui Zhusheng means Anhui Zhusheng Network Technology Co., Ltd.
Guangzhou Sanqi Culture & Entertainment means Sanqi Entertainment Network Technology (Guangzhou) Co., Ltd.
Chengdu Pengwan Technology Co., Ltd. means Chengdu Pengwan Technology Co., Ltd. and its subsidiaries
ZhangshuWangzhong Investment M anagement Center (Limited
Wangzhong Investment means
Partnership)
Chengdu Shouyin means Chengdu Shouyin Technology Co., Ltd.
KhorgosSanqi Wisdom Entertainment Silk Road Cultural Technology
Silk Road Culture Company means
Development Co., Ltd.
Anhui Jishuo means Anhui Jishuo Network Technology Co., Ltd.
Shanghai Jiqu means Shanghai Jiqu Network Technology Co., Ltd.
Feiying Network means Feiying Network Technology Co., Ltd.
Guangzhou Lehu means Guangzhou Lehu Network Technology Co., Ltd.
ChuangshiPoxiao means ChuangshiPoxiao Co., Ltd.
Japanese Lychee means Lychee Corporation
Guangzhou Jishang means Guangzhou Jishang Network Technology Co., Ltd.
Zen-game Technology means Zengame Technology Holding Limited and its operating entities
X.D. Network means XD Inc. and its operating entities
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Section II Company Profile and Key Financial Indicators
I. Company profile
Stock abbreviation Sanqi Interactive Entertainment Stock code 002555
Place of Listing Shenzhen Stock Exchange
Company name in Chinese 芜湖三七互娱网络科技集团股份有限公司
Company short name in
三七互娱
Chinese (if any)
Company name in English (if WUHU SANQI INTERACTIVE ENTERTAINM ENT NETWORK TECHNOLOGY GROUP
any) CO.,LTD.
Legal representative Li Weiwei
II. Contact person and contact information
Secretary of the Board of Directors Securities Affairs Representative
Name Ye Wei Wang Sijie
11/F, Creative Advertising Complex, Wuhu 11/F, Creative Advertising Complex, Wuhu
Contact address Advertising Industrial Park, M iddle Beijing Road, Advertising Industrial Park, M iddle Beijing Road,
Jiujiang District, Wuhu City, Anhui Province Jiujiang District, Wuhu City, Anhui Province
Tel. 0553-7653737 0553-7653737
Fax 0553-7653737 0553-7653737
Email ir@37.com ir@37.com
III. Othe r Relevant Information
1. Contact information
Any change to the registered address, office address and postal code, company website, e-mail during the reporting period
√Applicable □Not Applicable
11/F, Creative Advertising Complex, Wuhu Advertising Industrial Park, M iddle Beijing Road,
Registered Address
Jiujiang District, Wuhu City, Anhui Province
Post code of registered address 241000
11/F, Creative Advertising Complex, Wuhu Advertising Industrial Park, M iddle Beijing Road,
Business Address
Jiujiang District, Wuhu City, Anhui Province
Post code of business address 241000
Website http://www.37wan.net/
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Company email address ir@37.com
Query date (if any) of the
designated website for temporary M arch 19th, 2019
announcement
Query index (if any) of the For details of the Announcement of the Twenty -sixth M eeting of the Fourth Board of Directors
designated website for temporary (announcement No.: 2019-033), please refer to China Securities Journal, Securities Times,
announcement Shanghai Securities News, Securities Daily and www.cninfo.com.cn.
2. Information disclosure and designated place
Any change to the information disclosure and designated place during the reporting period
□Applicable √Not Applicable
Any change to the name of newspaper as designated by the Company for information disclosure, the website designated by CSRC for
publication of the semi-annual report, and the designated place of the semi-annual report during the reporting period (refer to the
annual report in 2018).
3. Other relevant information
Any change to other relevant information during the reporting period
√Applicable □Not Applicable
On April 8th, 2019, the Company held the 3rd Extraordinary General M eeting of 2019, at which the Proposal on Advancing the
General Election of Non-independent Directors for the Fifth Board of Directors and the Proposal on Advancing the General Election
of Independent Directors for the Fifth Board of Directors were reviewed and approved. Seven directors nominated by Li Weiwei
were elected in the general election of Board of Directors and secured more than half of the seats on the Board of Directors. The
voting rights held by Li Weiwei have had a material influence on the resolution of the Company’s 3rd Extraordinary General M eeting
of 2019, played a decisive role in electing more than half of the members of the Company’s Board of Directors through this meeting,
and effectively controlled the majority of the new Board of Directors. Therefore, the controlling shareholders and actual controllers
of the Company were changed from Wu Xushun, Wu Weidong and Wu Weihong to Li Weiwei. For details, please refer to the Prompt
Announcement on the Changes of Controlling Shareholders and Actual Controllers disclosed by the Company on April 9th, 2019
(announcement No.: 2019-045).
IV. Main accounting data and financial index
Does the Company need to retroactively adjust or restate accounting data of previous years?
□ Yes √ No
Increase or decrease of
Same Reporting Period of
Current Reporting Period current year against
the Prior Year
previous year
Operating income (RM B) 6,070,957,503.06 3,302,496,146.77 83.83%
Net profits attributable to the listed
1,033,074,405.38 801,378,948.23 28.91%
company shareholders (RM B)
Net profits attributable to listed company 949,369,446.08 761,182,531.85 24.72%
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
shareholders after deducting non-recurring
profits and losses (RM B)
Net cash flows from operating activities
616,354,936.37 977,236,017.96 -36.93%
(RM B)
Basic earning per share (yuan/share) 0.49 0.37 32.43%
Diluted earning per share (yuan/share) 0.49 0.37 32.43%
Weighted average rate of return on equity 16.31% 12.71% 3.60%
Increase or decrease
End of the Current End of the Same Reporting
compared with the end of
Reporting Period Period of the Prior Year
previous year
Total assets (RMB) 8,767,575,383.14 8,395,761,716.98 4.43%
Net assets attributable to listed company
6,166,617,209.02 5,972,675,405.86 3.25%
shareholders (RM B)
V. Data diffe rences due to different accounting standards in Mainland China and other
regions
1. Differences regarding to net profits and net assets between financial statements disclosed accordin g to
international standards and Chinese standards
□Applicable √Not Applicable
During the reporting period, there is no difference regarding to net profits and net assets between financial statements disclosed
according to international standards and Chinese standards.
2. Differences regarding to net profits and net assets between financial statements disclosed according to
standards of other regions and Chinese standards
□Applicable √Not Applicable
During the reporting period, there is no difference regarding to net profits and net assets between financial statements disclosed
according to standards of other regions and Chinese standards
VI. Non-recurring profits and losses and their amount
√Applicable □Not Applicable
Unit: RM B
Item Amount Description
M ainly profit and loss from the disposal
Profits or losses on disposal of non-marketable asset, including
8,967,295.34 of long-term equity investment and
offset amount accrued for impairment provision
fixed assets.
Government subsidy included in current profit or loss (except M ainly government subsidy other than
23,416,359.86
those closely related to enterprise operation and received based on the refund of value-added tax
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
consolidated national standard quota or quantitative) （hereinafter called the ‘VAT’）and
additional deduction of VAT.
Profit or loss of asset whose investment or management is M ainly the income from bank’s
11,172,479.46
entrusted to others financial products.
Except effective hedging business relating to normal operating
business of the Company, profit or loss caused by change in the
fair value of trading financial assets, derivative financial assets,
trading financial liabilities and derivative financial liabilities, and 44,790,828.46
investment profit for disposal of trading financial assets,
derivative financial assets, trading financial liabilities and
derivative financial liabilities and other creditors' investments.
Other non-operating revenues and expenditures except the
408,225.48
foregoing items
Less: Affected amount of income taxes 4,387,332.89
Affected amount of minority interest income (after-tax) 662,896.41
Total 83,704,959.30 --
As to non-recurring profits and losses determined based on the definition provided in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-Recurring Profit and Loss, and the recurring
profits and losses determined from non-recurring profits and losses listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Non-Recurring Profit and Loss, reasoning shall be provided
□Applicable √Not Applicable
During the reporting period, the Company recognized no non-recurring profit and loss defined and listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-Recurring Profit and
Loss as recurring profit and loss.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Section III Business Overview
I. Main business in the reporting period
Does the Company need to comply with the disclosure requirements for special industries?
Yes
Software and IT services
The Company is required to comply with the disclosure requirements of the SZSE Industrial Information Disclosure Guide No. 12 -
Listed Companies Engaged in Software and IT Services.
During the reporting period, the Company focused on cultural and creative businesses based on the development, distribution
and operation of mobile games and browser games, and also development in segments such as film and television, music, animation,
VR, cultural health, Internet children education, social entertainment, etc. The Company ranked 22nd in the 2018 global listed game
companies list by Newzoo, a well-known third-party data organization, and was also the third Chinese game company in the list, due
to its steady promotion of development strategy of “boutiqueization, diversification, platformization and globalization” around IPs.
During the reporting period, the Company gained an operating income of RM B 6.071 billion, with a year-on-year increase of
83.83%; a total profit of RM B 1.291 billion, with a year-on-year increase of 40.43%; a net profit attributable to the listed company
shareholders of RM B 1.033 billion, with a year-on-year increase of 28.91%. The main reason for driving performance growth was
the Company’s 152.90% increase in its income of mobile games.
1. Changes in industry-related economic situation and their impacts on the Company
1) In the first half of 2019, the overall income of the Chinese game market showed a rebound trend. The 2019 Semi-annual
Report of Chinese Game Industry released by Gamma Data showed that the actual sales revenue of Chinese game market from
January to June 2019 was RM B 116.31 billion, with a year-on-year increase of 10.8%; in the period from January to June 2019, the
number of users in the Chinese game market was 554 million, with a year-on-year increase of 5.1%. Among them, from January to
June 2019, the actual sales revenue of Chinese mobile game market was RM B 75.31 billion, with a year-on-year increase of 18.8%,
accounting for 64.8% of the total actual sales revenue of the Chinese game market. The growth rate of revenue increased compared
with the first half of 2018. The share of mobile games continues to increase year on year, and mobile games are still the main driving
force for the overall growth of Chinese game market.During the reporting period, the Company’s domestic mobile game revenue
grew rapidly. The Overall Analysis 2019H1 for Chinese M obile Game M arket released by Analysys showed that the market share of
the Company’s domestic mobile game business was 10.02%.
2) In the first half of 2019, the game industry entered a new stage of development under the influence of various factors: On
the one hand, the industry’s attention is increasingly concentrated on top works and head manufacturers, and the development trend
of the industry as a whole will not change. On the other hand, the number of mobile game users has not changed much in the first
half of 2019, and the dividends of users in the game industry have also basically reached the bottleneck, so the Chinese game
industry started to enter into the mature stage and its growth drivers have shifted from “demographic dividends” to “content
dividends”.
During the reporting period, the Company increased R&D investments, expanded its R&D teams, and enhanced its output
capability of high-quality games on the one hand, and on the other hand, the Company deepened the “diversification” strategy in
respect of research and development, domestic distribution, overseas distribution, etc., and reserved high-quality games of different
themes and types through independent research and development, investment in competent R&D companies, and cooperation with
R&D companies that produced quality games. The Company actively promoted the life cycle of quality games through systematic
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
traffic operations and improved operational services, and further leveraged the advantages of “integration of R&D and operation”
model to improve the operational efficiency.
2. Changes in industrial policy environment and their impacts on the Company
In June 2019, the M inistry of Culture and Tourism publicly solicited opinions on the Cultural Industry Promotion Law (Draft
for Comment). The draft for comment pointed out that China would promote the integration of cultural industry development into
national economic and social development plans, formulate special plans to promote the development of cultural industry, publish a
guidance catalogue for cultural industry development, and promote structural adjustment and layout optimization of cultural industry.
China encourages innovation in content, technology, and business type of cultural industry, and creates a social environment
conducive to the emergence of quality cultural products and talents.
During the reporting period, the Company actively responded to relevant requirements of industrial development, increased
investments in high-quality games and innovative gameplay settings, and vigorously protected intellectual property rights to ensure
compliant operations.
In December 2018, the General Office of the State Council issued the Regulations on Further Supporting the Development of
Cultural Enterprises, which explicitly increased the national supports for key enterprises and projects for national cultural exports
and strengthened the construction of national cultural export bases.
Sanqi Interactive Entertainment actively responds to the national “Go Out policy” for cultural industries, and strives to promote
Chinese cultural services to the rest of world. 37GAM ES will further develop its first-mover advantage in overseas markets, and rely
on its advanced game R&D and localized marketing capabilities to continuously expand the scale of overseas business and creat e
more foreign currency earnings, thus escorting the exports of cultural industries and helping Chinese cultural and entertainment
enterprises to enhance their cultural confidence.
3. M ain businesses, main products and business models of the Company
During the reporting period, the Company’s main businesses include the development, distribution and operation of mobile
games and browser games. The operating modes of the Company’s mobile games and browser games mainly include independent
operation and third-party joint operation.
Under the independent operation mode, the Company obtains the operation rights of game products through independent R&D
or agencies, and publishes and operates these products through its own or third-party channels. The Company is fully responsible for
the operation, promotion and maintenance of the game; providing unified management services for online promotion, online
customer service and top -up payment; and iteratively updating game products along with game developers based on the real-time
feedback of users and games.
Under the third-party joint operation mode, the Company cooperates with one or more game operators to jointly operate games.
The third-party game operators are responsible for operation and promotion of respective channels and management of recharge and
charge system, while the Company provides technical support services along with game developers.
II. Material changes in major assets
1. Material changes in major assets
M ajor assets M aterial changes
Equity assets No major changes to equity assets occurred.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Fixed assets No major changes to fixed assets occurred.
Intangible assets No major changes to intangible assets occurred.
The ending balance of trading financial assets increased by RM B 204 million compared with the
Trading financial assets opening balance, mainly due to the increase in the balance of unredeemed financial products at the end
of the period.
The ending balance of accounts receivable increased by RM B 419 million compared with the opening
Accounts receivable balance, mainly due to the increase in operating income in the second quarter of this year compared
with that in the fourth quarter of the previous year.
The ending balance of prepayments increased by RM B 309 million compared with the opening
Prepayments
balance, mainly due to the increase in prepaid Internet traffic charges.
The ending balance of other receivables decreased by RM B 700 million compared with the opening
balance, mainly due to: 1) the recovery of remaining amount during the reporting period for disp osal
Other receivables of Wuhu Shunrong Auto Parts Co., Ltd. in the previous year; 2) the recovery of the cash compensation
paid by the original shareholders of Shanghai M okun to the Company arising from the failure of
performance commitments by Shanghai M okun in the previous year.
The ending balance of other current assets decreased by RM B 115 million compared with the opening
balance, mainly because that Shanghai M okun failed to fulfill its performance commitments in the
Other current assets
previous year and its original shareholders’ compensation shares to the Company were cancelled
during the reporting period.
The ending balance of construction in progress increased by RM B 751 million compared with the
opening balance, mainly because that the office building purchased in 2017 was delivered during the
Construction in progress
reporting period and the prepayment for office building was recognized under the construction in
progress.
The ending balance of deferred income tax assets decreased by RM B 20 million compared with the
Deferred income tax assets opening balance, mainly due to the decrease in the balance of bad debt reserves at the end of the
period.
The ending balance of other non-current assets increased by RM B 743 million compared with the
opening balance, mainly because that the office building purchased in 2017 was delivered during the
Other non-current assets
reporting period and the prepayment for office building was recognized under the construction in
progress.
Note: The above-mentioned opening balance is the balance on January 1st, 2019 after adjustment
according to accounting policies.
2. Main assets beyond Mainland China
□Applicable √Not Applicable
III. Analysis of core competitiveness
Does the Company need to comply with the disclosure requirements for special industries?
Yes
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Software and IT services
The Company has steadily promoted the development strategy of “ boutiqueization, diversification, platformization and
globalization” around IPs to form the following core competitiveness:
1. Industry-leading R&D strength
During the reporting period, the Company has successively launched two self-developed products: Yi Dao Chuan Shi (一刀传
世) and Dou Luo Da Lu H5 (斗罗大陆H5), both with a monthly gross billing of over RM B 100 million. Jing Ling Sheng Dian (精灵
盛典) has achieved outstanding performance since its launch, the highest ranking of which was third in the best-selling list of
AppStore games. A number of self-developed quality games, such as Yong HengJi Yuan (永恒纪元) and Swords of Archangels (大
天使之剑), have achieved steady gross billing in the markets at which these games have been launched for more than one year. The
Company’s self-developed products are characterized by high output, high success rate and long period, and the Company’s R&D
strength is at the leading level in the industry.
The Company has always attached great importance to R&D investments. During the reporting period, the Company incurred
an R&D expenditure of RM B 318 million, with a year-on-year increase of 22.74%. During the reporting period, the Company began
to implement the “Aurora 2.0” strategy aimed at further strengthening its R&D capabilities by expanding its focus on products to
talent development and diversity of personnel, internally encouraging talent innovation, ma ximizing personnel potential, establishing
a corporate youth training system, building a diverse team, and striving to contribute top games to players around the world. Under
the guidance of this strategy, the Company ' self-developed products show the trend of "boutiqueization, diversification and
globalization".
The “boutiqueization” R&D strategy runs through the entire life cycle of the Company’s self-developed products: Before the
launch of games, the Company carefully worked out details of product planning, art quality, music effects, etc.; after the launch of
games, the Company continued to invest in product iteration, process optimization, user experience and other aspects to ensure the
high gross billing and long period of games.
The Company’s product research and development have always been market-oriented. The Company adheres to the principle
of sustainable development and constantly breaks through itself. Through continuous R&D investments, the Company has
accumulated a large number of core technologies: A series of high-performance and stable game engines and frameworks are
independently developed by the Company to support the development of highly playable large-scale online games of high
performance and quality, which provide an important guarantee for the Company to continuously launch high-quality games. The
engine 2.0 that the Company is developing will further enhance the refinement of items and characters and the reflection of scenes
and landscapes, create more realistic light and shadow performance, and support overall 3D map scene management technologies,
thus significantly improving the authenticity of games. At the same time, as an important tool to enhance the product experience, the
Company analyzes its game data through self-developed big data analysis system, and uses the analysis results to provide accurate
numerical reference for design of new products and iterative optimization of previous products, thus improving the Company’s
insights and capacity for process optimization in terms of product development.
During reporting period, the Company’s continued to promote the “diversification” strategy at the R&D level, and its R&D
team also maintained its advantages in the ARPG category while at the same time making initial attempts in new areas. The causal
game Chao Neng Qiu Qiu (超能球球) and the simulation game Code DG (代号DG) are expected to be launched in the second half
of 2019. During the reporting period, the Company continued to carry out pre-market researches and analysis on SLG-type games,
and was expected to start projects in the second half of the year. In 2019, the Company will continue to make diversified innovation
in product types, themes, art performance, gameplay settings, etc.
During the reporting period, the Company’s self-developed products have also made excellent achievements in the overseas
market, such as Yong Heng Ji Yuan (永恒纪元) and Dou Luo Da Lu H5 (斗罗大陆H5). In addition, the Company is also expected
to launch two self-developed overseas products in the second half of 2019.
As of the issuance date of this report, the Company was developing mobile games such as Chao Neng Qiu Qiu (超能球球),
Code NB (代号NB), Code YZD (代号YZD), Code S (代号S), Code DG (代号DG), An Hei Hou Yi (暗黑后裔), Dou Luo Da Lu 3D
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
(斗罗大陆3D), Country and Beauty (working title) (江山与美人(暂定名)), etc. With its accumulated experiences and continuous
innovation, the Company is expected to continue to produce long-period quality games that surpass the Yong Heng Ji Yuan (永恒纪
元) and Swords of Archangels (大天使之剑).
2. Excellent distribution strength
During the reporting period, the market share of the Company’s mobile game distribution business in M ainland China
increased to 10.02%; the Company’s browser game business in M ainland China also continued to maintain its leadin g position; while
maintaining its market advantages in Southeast Asia, the Company also focused on high-potential markets in Japan, South Korea,
Europe and the United States. The Company actively adheres to the “ boutiqueization and diversification” business strategy and
promotes its own business capacity to a new height through continuous innovation:
1) The promotion of “boutiqueization” strategy is reflected in product supply before the launch of games and operation
optimization after the launch.
In terms of product supply, the Company has accumulated abundant product resources, established a rigorous evaluation
process and evaluation criteria for product introduction, and also utilized its own advantages in user data and numerical exp eriences
to work out products along with game developers, thus ensuring a better quality of games before their launch.
In terms of operation optimization, the Company has strong capabilities for operation and optimization in numerical
management, process optimization, event planning, etc. After the launch of games, the Company continues to improve the quality of
games, attract users through better contents, extend the product life cycle, and accumulate higher income.
2) The “diversification” strategy has achieved good results in multiple business dimensions such as products, promotion and
services.
In terms of game products, the Company on the one hand brought a diversified layout to the product supply side through
independent research and development, investment in quality developers and cooperation with many large R&D manufacturers such
as Tencent, NetEase, Perfect World, Century Huatong Group, etc.; on the other hand, the Company has also made diversified
attempts in product categories and product themes to achieve better results. During the reporting period, the Company has
successively launched a series of game products with different categories and themes and higher gross billing in the Chinese mobile
game market, such as Dou Luo Da Lu H5 (斗罗大陆H5) and Sword and Rebirth (剑与轮回). Therefore, the Company’s multi-theme
and multi-category product matrix has begun to take shape and the Company also went further on the road of diversification.
In terms of promotion, the Company adopted a multi-dimensional approach of “multi-channel marketing + targeted
advertising ” to create a new idea for systemic traffic management. In terms of multi-channel marketing, the Company tried to meet
the different cultural consumption needs of users from different perspectives by choosing spokespersons who match the product
connotation, promoting games through high-quality micro-movie-style promotional materials, carrying out cross-border cooperation
among games, finance, catering and FM CG industries, and implanting public welfare activities into game products, thereby forming
a unique “product-effect combination” propaganda means to further expand its brand value and influence. In terms of targeted
advertising the Company analyzes big data such as “user portrait” and “user model” with t he user resources accumulated over the
years to accurately deliver advertisements to targeted user groups and improve the advertising effect.
In terms of services, the Company is committed to providing game users with comprehensive and detailed long-term services.
Through an improved user account and service system, and an experienced service team, the Company uses abundant product
supplies to provide users with comprehensive game products and one-stop services to continuously improve user satisfaction,
activation and retention, and also to extend the product life cycle.
The Company implements the above business strategies based on the principle of “refinement, datamation and
intelligentization” to provide users with a better experience in a more efficient manner.
3. Advantage of “integration of R&D and operation” mode
The “integration of R&D and operation” mode of the Company is conducive to making full use of resources and creating
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
quality products from a long-term perspective. On the one hand, the Company can ensure the stable supply of quality products to
support the operation development and reduce its reliance on external supplies through strong R&D strengths. At the same time, the
R&D team can utilize the feedback of the operation depart ment to optimize products and extend the product life cycle; on the other
hand, in the early stages of product R&D, the operation team can provide advices and suggestion to the R&D team with years of
experiences and keen market insights. Additionally, in the early stage of commercialization of products, the operation team can also
support the R&D team to conduct a large number of product tests, and utilize the promotion and marketing strategies to guide the
R&D team to adjust the iterative updates of product activities and improve the product success rate.
4. Team strengths
The Company has been deeply involved in the field of cultural and creative industries for many years. Its core management
team consists of experienced employees who have strong and forward-looking capabilities for strategic layout, while the core team
consists of highly skilled R&D personnel, creative operators, and highly efficient managers. The Company has always adhered t o the
marathon-style entrepreneurial spirit, and constantly caught up to surpass the industry leader.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Section IV Discussion and Analysis of Operation Performance
I. Overvie w
Key performance indicators The first half of 2019 The first half of 2018 Year-On-Year Change
Operating income (RM B 100 million) 60.71 33.02 83.83%
Total profit (RM B 100 million) 12.91 9.19 40.43%
Net profits attributable to the listed company 10.33 8.01 28.91%
shareholders (RM B 100 million)
Net cash flows from operating activities 6.16 9.77 -36.93%
(RM B 100 million)
Basic earning per share (yuan/share) 0.49 0.37 32.43%
Weighted average rate of return on equity 16.31% 12.71% 3.60%
During the reporting period, the Company has steadily promoted the development strategy of “ boutiqueization, diversification,
platformization and globalization” around IPs, making its comprehensive strength in the forefront among Chinese competitors.
During the reporting period, the Company gained an operating income of RM B 6.071 billion, with a year-on-year increase of
83.83%; a total profit of RM B 1.291 billion, with a year-on-year increase of 40.43%; a net profit attributable to the listed comp any
shareholders of RM B 1.033 billion, with a year-on-year increase of 28.91%. The growth of distribution and R&D for mobile games
was the main driver for the increase in overall income and profit during the reporting period.Following new products launched in the
third quarter，the company's gross billing of the third quarter is expected to surpass that of the second quarter.
(I) M obile game business
During the reporting period, the Company achieved an operating income of RM B 5,427 million and a gross profit of RM B
4,751 million from mobile games, a year-on-year increase of 152.90% and 185.42% respectively. The Company’s business revenue
from and R&D investment into mobile games continued to increase, and the mobile game business maintain ed the leading position in
domestic and overseas markets.
1. Release of mobile games
(1) Domestic market
The Company continued to play a vital role in domestic mobile game publishing market. During the reporting period, the
market share of the Company’s mobile game business in M ainland China increased to 10.02%. During the reporting period, the
highest monthly gross billing of the Company’s game products exceeded RM B 1.35 billion, with the total number of new registered
users exceeding 133 million and the highest number of monthly active users exceeding 34 million.
During the reporting period, the Company applied diversification strategy at various levels such as products, promotion and
services in a creative manner, based on its capability of operating different games.
During the reporting period, under the “diversification” strategy, the Company adequately reserved game products considering
product type, theme and quantity. The Company’s product matrix includes ARPG, MMO, CARD, SLG, SIM and other types,
covering a wide range of themes such as magic, western fantasy, oriental fantasy, adventure, fantasy, etc. During the reporting period,
the Company launched a series of quality game products of different types and themes such as Yi Dao Chuan Shi (一刀传世), Dou
Luo Da Lu H5 (斗罗大陆H5) and Sword and Rebirth (剑与轮回), thus bringing diverse game experiences to players. As of the
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
issuance date of this report, the Company’s independently-developed games include Code NB (代号NB), Code YZD (代号YZD),
Code S (代号S), Dou Luo Da Lu 3D (斗罗大陆3D), Country and Beauty (working title) (江山与美人(暂定名)), etc. In addition, the
Company also reserved a large number of domestic agency games, including:
MMO games: M ing Ri Huan Xiang (working title) (明日幻想(暂定名)), Yun Shang Cheng Zhi Ge (working title) (云上城之
歌(暂定名)), Code M K4 (代号MK4)
Card games: Light Adventure (working title) (光明冒险(暂定名)), Street Hero (working title) (街区英雄(暂定名)), Code DIG
(代号DIG)
SIM games: Code-SF (代号-SF)
M agic ARPG: ARPG Code-TARO (代号-TARO)
In addition, the Company accurately understood users’ needs, delivered advertisements to target groups accurately, and
provided a full range of high-quality services from initial contact, access to games to start of games, thereby prolonging the product
life cycle and accumulating higher gross billing, by adhering to the core idea of systemic traffic management and the diversified
methods of “multi-channel marketing + targeted advertising + long-term service” and radiating “products + promotion + users” under
the principles of “refinement, datamation and intelligentization”.
(2) Overseas market
During the reporting period, the Company continued to promote its strategic layout of globalization and intensified efforts to
expand its overseas markets. While it maintained its competitiveness in Southeast Asia and other advantageous regions, the Company
continued to focus on high-potential markets in Japan, South Korea, Europe and the United States by utilizing localized product
selection and marketing methods. As of the end of the reporting period, 37GAM ES, the Company’s overseas brand, launched over
100 mobile games in more than 200 countries and regions, including ARPG, MMOPRG, CARD RPG, SLG, STG, MOBA, etc., with
14 language versions such as Traditional Chinese, English, Japanese, Korean, Thai, etc.
As of the date of this report, the self-developed product Dou Luo Da Lu H5 (斗罗大陆H5) was launched on Singapore and
M alaysia and other regions, with the first monthly gross billing exceeding RM B 10 million; the card game SNK All Star (SNK オー
ルスター) was launched in Japan and quickly went top on the GooglePlay game download list; during the reporting period, the
Company constantly updated and iterated its flagship product, Yong Heng Ji Yuan (永恒纪元), keeping a stable gross billing in
regional markets of Southeast Asia, Europe, the United States, Japan, South Korea.
The Company maintained a good cooperative relationship with many R&D firms, ensured the relevance of product sources
with agency distribution, self-development and investment customization, and also adhered to the quality route in product selection.
As of the date of this report, the Company has reserved a number of game products in several regions around the world, such as the
Western fantasy SLG Code M H (代号M H) and medieval SLG Ocean Wars, and has also strengthened the global SLG market layout
through strategic investments in a number of successful R&D firms. In addition, many self-developed quality products such as the
ARPG An Hei Hou Yi (暗黑后裔), international version of Dou Luo Da Lu H5 (斗罗大陆H5), and SIM Code DG (代号DG) are
expected be launched overseas in the second half of 2019 to help the Company further develop its overseas markets.
2. Research and development of mobile games
During the reporting period, the Company achieved a significant increase in the gross billing of mobile game R&D business,
thereby enhancing the Company’s profitability. The continuous investment into mobile game R&D is an important part of the
Company’s “boutiqueization, diversification and globalization” business strategy. The increased R&D investment mainly focuses on
improvement of product quality and exploration of new product categories.
To improve product quality, the Company is committed to make better the product engines, and the artistic and sound quality
of products to meet the user demand in experiencing high-quality games at technical level; it is dedicated to game innovation and
process optimization to meet user demand in fun and smooth experience at the planning level. High-quality development and
high-frequency iterations made new products attractive to users, and allowed most self-developed products to maintain high gross
billing for a long time. During the reporting period, several self-developed mobile games have been launched, among which Dou Luo
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Da Lu H5 (斗罗大陆H5) and Yi Dao Chuan Shi (一刀传世) and other games achieved a monthly gross billing of over RM B 100
million, and Jing Ling Sheng Dian (精灵盛典) has achieved outstanding performance since its launch, the highest ranking of which
was third in the best-selling list of AppStore games. The Company has innovated the game framework of Yi Dao Chuan Shi (一刀传
世) and Jing Ling Sheng Dian (精灵盛典), focusing more on players’ experiences and growth in games; through Dou Luo Da Lu H5
(斗罗大陆H5), the Company has opened a new operation model, enabling game activities to fully meet the needs of players at
different stages. The Company also determined to build the latter a H5 benchmark product with the longest product cycle.
In the exploration of new product categories, the Company set foot on R&D of casual sports games and simulation games
during the reporting period, and conducted preliminary research on the development of other categories such as SLG. Chao Neng Qiu
Qiu (超能球球), a casual game developed by the Company, and Code DG (代号DG), a SIM game aimed at overseas market, will
also be launched to markets in the second half of this year. In the future, the goal of the Company is to become a first -rate game
developer capable of providing players with various game products, focusing on high-quality content and utilizing its own
advantages in anticipating user needs. It will apply core technologies to further explore new themes, gameplay and catagories , and to
actively expand its product lines. At the end of the reporting period, the Company was developing eight mobile games including
Chao Neng Qiu Qiu (超能球球), Code NB (代号NB), Code YZD (代号YZD), Code S (代号S), Code DG (代号DG), An Hei Hou
Yi (暗黑后裔), Dou Luo Da Lu 3D (斗罗大陆3D), Country and Beauty (working title) (江山与美人(暂定名)).
In terms of new technology accumulation, the Company is currently committed to building a better cloud game system, including:
building internal cloud, providing computing and network supports for cloud games; building cloud game agency services, actively
researching efficient game video transcoding and decoding technologies; developing a universal framework with user interaction,
video decoding, and cloud server communication, so as to support the universal light App for cloud gaming. In the upcoming 5G era,
the Company’s smooth transition among cloud gaming technologies is expected to bring new experiences to game players.
(II) Browser games
M ore than 18,590 new servers were opened in 2019 in the domestic market, topping the ranking list of operation platforms in
term of server opening (source of data from 9k9k). During the reporting period, the operating income from browser games reached
RM B 646 million, with a slight drop year on year, which was mainly due to users’ shift to mobile clients and reduction in browser
games. The Company also continued its efforts to develop browser games, and its self-developed product An Hei Da Tian Shi (暗黑大
天使) was launched in July 2019. The Company strengthened cooperation with domestic top browser game developers through
strategic investment and business cooperation on the one hand, on the other hand, the Company also refined the operation of its
major quality games, improved user stickiness, stabilized the product life cycle, and further stabilized its revenue.
(III) Cultural industry layout
The Company invested into other fast-growing cultural and creative segments, while maintaining the high-speed growth of its
core business, and deeply explored the opportunity to extend film and television, music, animation, VR, cultural health, Internet
children education and social entertainment with a key focus centering a strategy on quality content. As of the end of the reporting
period, the Company invested in cultural and creative segments of film and television (Chenming M edia, Youying Culture, Zhonghui
Television), animation (YHKT Entertainment, Junengwan), music (FenghuaQiushi), Internet sports (Wake Yoga), children’s
education (M iaocode, KaDa Story), cultural tourism (TuoluLingyin), talent agent (Original Plan) and IP incubation (JinhaiShiyi), to
provide high-quality content for all ages and segments.
As of the date of this report, the Company’s many subject companies have shown great potential of development, and the
Company’s investment strategies in the field of cultural and creative development has also begun to show its outcomes. In April 2019,
Zen-game Technology, a domestic chess and card game company with part of its shares held by the Company, was officially listed
on the Hong Kong Stock Exchange; in M ay, SNK, a game company with part of its shares held by the Company, was listed on the
Korean KOSDAQ market and became the largest Chinese game company listed on the Korean KOSDAQ market; in June, He Luoluo,
a member of the Yi’an M usic Society under Original Plan (with the Company as one of its shareholders), successfully made his debut
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
as the second place in “Creation Camp 2019”; the animation project of Three Body, a science fiction novel, was announced to be
produced by YHKT Entertainment (with the Company as one of its shareholders); in July 2019, X.D. Network, a well-known
Chinese game operator (with the Company as one of its shareholders), publicized its IPO prospectus; Hong Kong-listed Inke
announced that it has completed the acquisition of the Company’s shareholding of domestic youth social platform ,and the Company
achieved considerable returns in less than a year. When the Company selects investment targets, it focuses on their ability to
continuously export high-quality contents or products, excellent teams or talent reserves, and explosive growth in the later stage, so
as to accelerate the integration of high-quality resources in the industry and consolidate the position of the Company in the capital
market.
Focusing on main game business and traffic operation advantages, combined with the previous layout of VR and AR, the
Company will focus on and actively get involved in fields of 5G, cloud gaming and e-sports, empower and coordinate strategically
with the invested companies, offer more high-quality content with new experience, create a one-stop cultural and entertainment
ecosystem, and become the most trusted cultural brand of China’s younger generation.
(IV) IP strategy
It’s a long-term development goal of the Company to create quality content and establish a quality content brand. Based on this,
the Company continues to explore, by the methods of internal incubation and external access, high-quality IPs for development of
quality cultural products including games, relying on its own advantages. As of the end of the reporting period, the reserved IPs of
the Company covered different segments, including games, animation, literature, media, etc. At the same time, the Company will
gradually develop own IPs to create a higher value. Relying on its excellent IP strategy, the Company will continue to build its
cultural and creative strategy system, satisfy the diversified demands of users for entertainment, and exploit the value extension space
of IPs in film and television, music, animation, VR, cultural health industry, Internet children education and social entertainment in
depth.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
II. Analysis of main business
Overview
See “I. Overview” in “Discussion and Analysis of Operation Status” for related content.
Year-on-year changes of the main financial data
Unit: RM B
Current Reporting Same Reporting Period Year-On-Year
Cause of changes
Period of the Prior Year Change
Operating income 6,070,957,503.06 3,302,496,146.77 83.83% M ainly due to the development of mobile game release and R&D business during the reporting period.
Operating cost 838,986,561.51 886,273,600.84 -5.34% M ainly due to the increase in the proportion of self-developed game revenue during the reporting period.
During the reporting period, sales expenses increased rapidly, mainly due to the launch of quality games such
as Dou Luo Da Lu H5 (斗罗大陆 H5). During the reporting period, a number of new games were being
promoted and required large Internet traffic. The total number of newly registered users of domestic mobile
Selling expenses 3,632,067,521.84 1,143,478,494.94 217.63%
games in the first half of the year exceeded 133 million, higher than the annual level in 2018. Sinc e a large
number of games were launched in the first quarter, as these games gradually entered the payback period, the
sales expenses in the second quarter decreased by RM B 650 million compared with the first quarter.
Administrative M ainly due to the fact that Wuhu Shunrong Auto Parts Co., Ltd. and ENP Games Co., Ltd. were no longer
88,053,838.68 127,934,924.44 -31.17%
expense included in the consolidation scope.
Financial expenses 4,333,541.72 13,958,433.93 -68.95% M ainly due to the decrease in bank borrowings and interest expenses during the reporting period.
M ainly due to: 1) Increase in profit before tax during the reporting period; 2) increase in the income tax rate
Income taxes 131,634,742.44 36,437,882.35 261.26%
applicable to certain subsidiaries .
M ainly due to the increase in the number of game R&D personnel and the increase in investment of
Investment in R&D 318,493,874.16 259,493,136.84 22.74%
multi-category research and development.
During the reporting period, the net cash flow from operating activities decreased by RM B 360 million year
Net cash flows from on year mainly due to two reasons: 1) Operating income increased by 84% during the reporting period, and
616,354,936.37 977,236,017.96 -36.93%
operating activities the balance of accounts receivable correspondingly increased; 2) in order to obtain better traffic resources and
business conditions more in line with the Company’s interests, the Company and major traffic service
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
providers renegotiated the transaction period during the reporting period, resulting in a decrease in the net
cash flow from operating activities. As the income scale and transaction period tend to stabilize, the net cash
flow from operating activities in the second half of the year is expected to improve.
M ainly due to: 1) the recovery of remaining amount during the reporting period for disposal of Wuhu
Net cash flows from Shunrong Auto Parts Co., Ltd. in the previous year; 2) the recovery of the cash compensation paid by the
476,138,307.69 -72,005,570.73 761.25%
investing activities original shareholders of Shanghai M okun to the Company arising from the failure of performance
commitments by Shanghai M okun in the previous year.
1) In the report period, repayment of bank loans and payment of repurchased shares resulted in a cash outflow
Net cash flows from from financing activities of RM B 824 million; 2) in the same period of last year, bank loans generated a cash
-823,976,503.10 -946,717,438.85 12.96%
financing activities inflow from financing activities of RM B 669 million; and repayment of bank loans and payment for
acquisition of minority shares caused a cash outflow from financing activities of RM B 1.616 billion.
Net increase of cash M ainly due to the large YoY increase in net cash flow from investing activities and financial activities during
268,388,648.05 -42,251,340.41 745.40%
and cash equivalents the reporting period.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Any major changes to the profit composition or profit source of the Company during the reporting period
□Applicable √Not Applicable
No major change occurs to the profit composition or profit source of the Company during the reporting period
Composition of operating income
Unit: RM B
Current Reporting Period Same Period of the Prior Year
Year-on-year
Proportion of Proportion of operating
Amount Amount increase/decrease
operating income income
Total operating income 6,070,957,503.06 100% 3,302,496,146.77 100% 83.83%
By industry
Online game industry 6,070,957,503.06 100.00% 3,071,123,194.02 92.99% 97.68%
Automobile parts
0.00 0.00% 231,372,952.75 7.01% -100.00%
industry
By products
M obile games 5,426,572,514.55 89.39% 2,145,744,221.56 64.97% 152.90%
Browser games 644,384,988.51 10.61% 910,103,611.46 27.56% -29.20%
Others 0.00 0.00% 15,275,361.00 0.46% -100.00%
Automobile parts 0.00 0.00% 231,372,952.75 7.01% -100.00%
By regions
M ainland China 5,573,514,047.04 91.81% 2,828,407,922.34 85.64% 97.05%
Overseas 497,443,456.02 8.19% 474,088,224.43 14.36% 4.93%
Industries, products or regions that account for over 10% of the Company’s operating income or operating profit
√Applicable □Not Applicable
Unit: RM B
Year-on-year Year-on-year
Year-on-year
Gross profit increase/decrease increase/decrease
Operating income Operating cost increase/decrease
margin of the operating of the operating
of gross profit
income cost
By industry
Online game
6,070,957,503.06 838,986,561.51 86.18% 97.68% 17.17% 9.50%
industry
By products
M obile games 5,426,572,514.55 675,612,778.55 87.55% 152.90% 40.41% 9.97%
Browser games 644,384,988.51 163,373,782.96 74.65% -29.20% -30.44% 0.46%
By regions
M ainland China 5,573,514,047.04 671,488,655.17 87.95% 97.05% -14.29% 15.65%
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Overseas 497,443,456.02 167,497,906.34 66.33% 4.93% 62.85% -11.98%
For change of statistical caliber for main business data during the reporting period, the Company adjusted the main business data for
the current period according to year-end statistical caliber
□Applicable √Not Applicable
The Company is required to comply with the disclosure requirements of the SZSE Industrial Information Disclosure Guide No. 12 -
Listed Companies Engaged in Software and IT Services.
Industries that account for over 10% of the Company’s operating income or operating profit
√Applicable □Not Applicable
Unit: RM B
Year-on-year Year-on-year
Year-on-year
Gross profit increase/decrease increase/decrease
Operating income Operating cost increase/decrease
margin of the operating of the operating
of gross profit
income cost
Industry of customers
Online game
6,070,957,503.06 838,986,561.51 86.18% 97.68% 17.17% 9.50%
industry
By products
M obile games 5,426,572,514.55 675,612,778.55 87.55% 152.90% 40.41% 9.97%
Browser games 644,384,988.51 163,373,782.96 74.65% -29.20% -30.44% 0.46%
By regions
M ainland China 5,573,514,047.04 671,488,655.17 87.95% 97.05% -14.29% 15.65%
Overseas 497,443,456.02 167,497,906.34 66.33% 4.93% 62.85% -11.98%
The single sales contract with its amount accounting for more than 30% of the audited operating income of the Company in the most
recent fiscal year and the contract under execution with the amount more than RM B 50 million
□Applicable √Not Applicable
Composition of operating cost
Unit: RM B
Current Reporting Period Same Reporting Period of the Prior Year
Year-on-year
Cost composition Proportion in Proportion in
Amount Amount increase/decrease
operating cost operating cost
Royalties 713,853,625.84 85.09% 633,845,493.29 71.52% 12.62%
Cost of servers 52,216,599.22 6.22% 43,827,578.58 4.95% 19.14%
Amortization of copyright
72,014,090.09 8.58% 22,131,700.53 2.50% 225.39%
money
Other costs 331,105.07 0.04% 503,238.47 0.06% -34.21%
Production cost 571,141.29 0.07% 15,732,575.61 1.78% -96.37%
Direct materials cost 0.00 0.00% 134,734,499.98 15.20% -100.00%
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Direct labor expenses 0.00 0.00% 8,281,182.96 0.93% -100.00%
M anufacturing expenses 0.00 0.00% 27,217,331.03 3.07% -100.00%
Total 838,986,561.51 100.00% 886,273,600.45 100.00% -5.34%
Explanation for +30% deviation YOY of relevant data
√Applicable □Not Applicable
1. The operating income of online games increased by 97.68% year-on-year, and the operating income of mobile games increased by
152.90% year-on-year, mainly due to the significant increase in the Company’s operating income after the launch of new games such
as Dou Luo Da Lu H5 (斗罗大陆H5) and Yi Dao Chuan Shi (一刀传世) in this report period.
2. The operating income of auto parts decreased by 100% year-on-year, mainly due to the disposal of Wuhu Shunrong Auto Parts Co.,
Ltd. at the end of last year and its separation from the consolidation scope in the current period.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
III. Analysis of non-main business
√Applicable □Not Applicable
Unit: RM B
Amount Proportion of total profit Cause Is it consistently applied?
M ainly due to the disposal of equity investment, dividend distribution
Investment income 18,932,969.82 1.47% during the period of equity investment, and the investment income from No
financial products.
Profits and losses from
41,603,452.48 3.22% M ainly due to changes in the fair value of equity investment No
change of fair value
Bad debt losses are sustainable, and impairment
M ainly due to bad debt losses and impairment losses of long-term equity
Asset impairment 18,305,311.43 1.42% losses of long-term equity investment are not
investment.
sustainable.
Non-operating income 3,082,997.15 0.24% M ainly due to compensation income. No
Non-operating expense 2,674,771.67 0.21% M ainly due to donation expenses. No
Refund of VAT upon collection can be
M ainly refund of VAT upon collection and other government subsidies
Other profits 49,294,108.11 3.82% consistently applied, but other government
related to daily operations.
subsidies cannot be consistently applied.
IV. Analysis of Assets and Liabilities
1. Significant changes in the composition of assets
Unit: RM B
End of the Current Reporting End of the Same Reporting Increase/de
Period Period of the Prior Year crease of Explanation
Amount Proportion of Amount Proportion of proportion
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
total assets total assets
M ainly due to the recovery of remaining amount during the reporting period for disposal of
M onetary fund 1,788,431,889.15 20.40% 1,538,659,591.57 17.52% 2.88% Wuhu Shunrong Auto Parts Co., Ltd. in the previous year; and the recovery of the cash
compensation paid by the original shareholders of Shanghai M okun to the Company.
M ainly due to the increase in operating income in the second quarter of this year compared
Accounts receivable 1,717,575,938.59 19.59% 942,845,341.12 10.73% 8.86%
with that in the fourth quarter of the previous year.
Long-term equity
514,224,823.77 5.87% 397,333,972.65 4.52% 1.35%
investments
M ainly due to the fact that Wuhu Shunrong Auto Parts Co., Ltd. was no longer included in the
Fixed assets 36,385,942.05 0.42% 288,015,211.62 3.28% -2.86%
consolidation scope.
M ainly because that the office building purchased in 2017 was delivered during the reporting
Construction in
751,293,007.77 8.57% 72,389,566.29 0.82% 7.75% period and the prepayment for office building was recognized under the construction in
progress
progress.
M ainly due to the repayment of bank loans from the second half of 2018 to the first half of
Short-term loan 0.00% 649,000,000.00 7.39% -7.39%
2019.
Long-term loans 265,883,241.55 3.03% 296,165,631.48 3.37% -0.34%
2. Assets and liabilities measured by fair value
√Applicable □Not Applicable
Unit: RM B
Profits and losses from Change in fair Impairment
Purchase amount in Sales amount in
Item Beginning balance change of fair value in this value included in accrued in Ending balance
current period current period
period equity current period
Financial assets
1. Trading financial assets (excluding derivative 1,038,719,630.88 41,603,452.48 2,451,626,703.60 2,279,501,060.00 1,252,481,621.45
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
financial assets)
4. Other equity investment 196,571,394.67 50,029,719.00 246,635,981.28
Subtotal of financial assets 1,235,291,025.55 41,603,452.48 0.00 0.00 2,501,656,422.60 2,279,501,060.00 1,499,117,602.73
Total of the above 1,235,291,025.55 41,603,452.48 0.00 0.00 2,501,656,422.60 2,279,501,060.00 1,499,117,602.73
Financial liabilities 0.00 0.00
Whether there is significant change to measurement attributes of main assets during the reporting period
□ Yes √ No
3. Restriction of main assets and rights as if the end of the reporting period
1. The total amount of construction in process corresponding to subsidiaries’ mortgage loan for office building was RM B 751,293,007.77 in total.
2. In the bank account balance of the Company’s subsidiaries, RM B 34,302,896.31 was the balance of restricted margin account.
V. Analysis of Investment Situations
1. Overview
√Applicable □Not Applicable
Investment amount during the reporting period (RM B) Investment amount of previous year (RM B) Change %
88,507,340.85 1,511,174,479.33 -94.14%
2. Major equity investment during the reporting period
√Applicable □Not Applicable
Unit: RM B
Name of Way of Investment Sharehol Capital Investment Product Progress as of Anticipate Current Involved in Date of Index of
M ain businesses Partner
invested contribution amount ding ratio sources period types the balance d revenue investment lawsuit or disclosure disclosure
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
company sheet date profit and not? (if any) (if any)
loss
Internet cultural activities;
Internet information services;
technology promotion,
technology transfer, technology
consulting, technical services,
technology development;
computer system services; data Industrial and
Karma
processing; basic software commercial
Game Capital Self-ow R&D of
services; application software 17,000,000.00 10.00% None Long-term changes have No
Beijing increase ned games
services (excluding medical been
Limited
software); design, production, registered
agency and release of
advertisement; software
development; import and export
of technology, import and export
of goods, and import and export
agency.
Internet cultural activities;
Internet information services;
technology promotion,
Industrial and
technology transfer, technology
Karma commercial
consulting, technical services, Capital Self-ow R&D of
Game HK 12,918,608.00 10.00% None Long-term changes have No
technology development; increase ned games
Limited been
computer system services; data
registered
processing; basic software
services; application software
services (excluding medical
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
software); design, production,
agency and release of
advertisement; and software
development.
Venture capital and related
consulting business; venture
Suzhou
capital business agency for other
Youge
venture capital institutions or Industrial and (Announce
Huaxin
individuals; and provision of commercial ment No.:
Venture Capital Self-ow Dec 4th,
entrepreneurial management 10,500,000.00 18.69% None Long-term Funds changes have No 2018-087、
Investment increase ned 2018
services for start-up enterprises. been 2018-089、
Center
(Operating activities to be registered 2018-093)
(Limited
approved in accordance with
Partnership)
laws should be taken after being
approved by related departments)
合计 -- -- 40,418,608.00 -- -- -- -- -- -- 0.00 0.00 -- -- --
3. Major non-equity investment during the reporting period
√Applicable □Not Applicable
Unit: RM B
Investment Accumulated
Industries Accumulated Reasons for failure to
Is it fixed amount gains as of the Date of
Way of relevant for input amount as Capital Project Anticipated reach planned Index of disclosure (if
Project name assets during the end of the disclosure (if
contribution investment of the end of sources progress revenue schedule or expected any)
investment reporting reporting any)
projects reporting period revenue
period period
12F, 14F, 17F~23F Commercial Own + April 26th, Announcement on the
Others Yes 7,950,918.25 844,755,711.27 0.00 0.00 Not applicable
office premises, real estate mortgag 2017 Subsidiary’s Purchase
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
underground 3F and e loans of Office Space and
4F parking spaces Supporting Parking
of Zhongrong Plaza, Lot (Announcement
No. 666, Huangpu No.: 2017-034)
Avenue, Tianhe
District, Guangzhou
Total -- -- -- 7,950,918.25 844,755,711.27 -- -- 0.00 0.00 -- -- --
4. Financial assets that are measured by fair value
√Applicable □Not Applicable
Unit: RM B
Profits and losses Change in fair Purchase amount
Initial investment Amount sold during Accumulated
Assets category from change of fair value included during the reporting Ending amount Capital sources
cost the reporting period investment income
value in this period in equity period
Share 247,477,664.36 41,603,452.48 4,999,610.00 -12,624.02 255,776,496.54 Self-owned
Others 1,046,204,601.78 2,501,656,422.60 2,274,501,450.00 16,073,479.46 1,243,341,106.19 Self-owned
Total 1,293,682,266.14 41,603,452.48 0.00 2,501,656,422.60 2,279,501,060.00 16,060,855.44 1,499,117,602.73 --
5. Security investment
√Applicable □Not Applicable
Profits and Change Purchase
Profit and
Accounting Book value at losses from in fair amount in Sales amount Carrying value at
Securities Securities Securities Initial loss in Accounting Capital
measurement the beginning change of fair value the in the current the end of the
type code short name investment cost reporting subjects sources
model of the period value in this included current period period
period
period in equity period
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Domestic and 002445-S Zhongnan Fair value Other non-current
68,896,440.90 3,986,218.11 -1,510,798.74 2,475,419.37 Others
foreign stocks ZSE Culture measurements financial assets
M ango
Domestic and 300431-S Fair value Other non-current
Excellent 35,582,900.00 67,155,608.00 7,330,686.30 74,486,294.30 Others
foreign stocks ZSE measurements financial assets
M edia
Domestic and 02660-H Shenzhen Fair value Other non-current
18,000,000.00 18,000,000.00 -793,210.12 17,217,313.29 Self-owned
foreign stocks KEX Zen-game measurements financial assets
Domestic and 960180-K Fair value Other non-current
SNK 1,036.35 1,036.35 36,576,775.04 36,600,182.47 Self-owned
foreign stocks SE measurements financial assets
Domestic and 833604-N Southern Fair value Other non-current
64,997,287.11 69,996,897.11 4,999,610.00 -12,624.02 64,997,287.11 Self-owned
foreign stocks EEQ Pictures measurements financial assets
Domestic and 835067-N Fair value Other equity
M okylin 60,000,000.00 60,000,000.00 60,000,000.00 Self-owned
foreign stocks EEQ measurements investment
Total 247,477,664.36 -- 219,139,759.57 41,603,452.48 0.00 0.00 4,999,610.00 -12,624.02 255,776,496.54 -- --
Disclosure date of board meeting
announcement concerning the
approval of securities investment
Disclosure date of shareholder
meeting announcement concerning
the approval of securities investment
(if any)
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
6. Investment in derivatives
□Applicable √Not Applicable
There was no derivative investment during the reporting period.
7. Utilization of raised fund
□Applicable √Not Applicable
No raised funds were used by the Company during the reporting period.
8. Description of key projects not invested by the raised fund
□Applicable √Not Applicable
During the reporting period, the Company had no major projects invested by non-raised funds.
VI. Major Asset and Equity Sales
1. Sales of major assets
□Applicable √Not Applicable
The Company did not sell major assets during the reporting period.
2. Sales of major equity
□Applicable √Not Applicable
VII. Analysis of Main Holding and Joint-Stock Company
√Applicable □Not Applicable
M ain subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
Unit: RM B
Company Company M ain Registered
Total assets Net asset Operating income Operating profit Net profit
name type businesses capital
Development
Jiangsu
Subsidiary of mobile and 6,250,0000.00 2,762,827,128.14 1,986,334,960.29 909,987,318.23 552,518,363.11 496,684,776.71
Aurora
browser games
Release and
Guangzho
Subsidiary operation of 11,764,706.00 4,839,312,848.18 765,510,356.03 4,271,590,566.86 689,884,760.75 638,667,391.93
u Sanqi
mobile games
Acquisition and disposal of subsidiaries during this reporting period
√Applicable □Not Applicable
Company name M ethod for acquisition and disposal of Influence on overall production, operation
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
subsidiaries during this reporting period and performance
No major impact on the Company’s overall
Shanghai M okun Sale
operation and performance
M ajor holding and joint-stock companies
VIII. The Structured Entity Controlled by the Company
□Applicable √Not Applicable
IX. Predication of business performance from January to September in 2019
□Applicable √Not Applicable
X. Risks and Counte rmeasures
1. M arket competition risks and countermeasures
The online game industry is facing increasingly fierce competition as it gradually matures. The development of various
Internet-based cultural creative segments other than online games is further exacerbating external competition. At the same time,
online game users are also maturing, and online game users have increasingly higher standards for game products. Intense mark et
competition will challenge the Company’s development in terms of products and market channels.
In response, the Company will continue to increase R&D investment, R&D and innovation in product creativity, gameplay,
theme, art and technology. It will maintain close cooperation with excellent developers to guarantee the supply of quality products,
and continue to connect users with quality games. In terms of market channels, the Company will further bring into play the r ole of
new ideas in traffic operation, deepen the business strategy of multi-channel marketing ,targeted advertising and long-term services,
and continuously enhance its core market competitiveness.
2. Business risks and countermeasures
The online game industry is characterized by fast product update, limited life cycle and fast change of user preference. Game
enterprises need to increase their investment in technology development and closely keep in pace with trend of the industrial
technologies. If the technology, products and other aspects of the game undergo major changes, but game enterprises fail to keep up
with the development of industry technology, their products will fail to meet the market demands. At the same time, information
security and user privacy protection arouse great public concerns. If the Company leaks users’ information due to negligence, there
will be a significant damage on the user experience and brand image. Consequently, its operation performance will be impaired.
In response, increasing input in product R&D is needed to maintain continuous product innovation. The Company also needs
to dig deeper into operational data, continuously update the understanding of changes in target users’ preferences, and timely adjust
operational strategies and R&D directions, to meet the core demands of users.
A strict internal control system for information security management and user privacy protection has been set up to ensure the
security of users’ information to the maximum extent. In terms of information security, the Company has developed a series of
internal control systems to define and classify security incidents and to respond to possible data security problems. Information
security audits take place once every six months for systematic control of information security risks. In terms of privacy protection,
the Privacy Policy has been established, which provides in details the rules and standards for collection and use of users’ personal
information and sets forth the reasonable and feasible security measures adopted for protection of users’ personal information. In this
way the Company will make sure with greatest efforts that all users’ personal information are protected at the highest level. The
Company ensures that it runs the business in compliance with applicable laws and regulations throughout the world, and protects the
users’ right to manage personal information. A response procedure has been stipulated to inform users of any possible cost and
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
necessary actions needed to be taken.
3. Risks of core personnel turnover and countermeasures
A stable and high-quality talent team for game development, operation and management is an important guarantee for the
Company to maintain its core competitive advantage. If the Company fails to effectively build a core talent team, give reason able
incentives and manages the core personnel, the employees’ enthusiasm and creativity will be affected, which will have an advers e
impact on the Company’s core competitiveness.
In response, much attention has been attached to cultivation and acquisition of professional talents. The Company creatively
builds a platform-based talent management mechanism, according to which excellent game producers are rewarded with high project
bonus, and given discretion of research and creation. In order to flexibly attract and retain quality management and business talents,
taking into account the Company’s long-term and recent interests and the Company’s long-term, sustainable and sound development,
the Company implemented the employee stock ownership plan during the reporting period to establish and improve the benefit
sharing mechanism between workers and owners, further improve the corporate governance structure of the Company and effectively
mobilize the enthusiasm of workers and employees. The Company maintains the stability of core technology and management
personnel by signing agreements with core personnel, creating a favorable working environment and building a great corporate
culture. M eanwhile, the Company helps employees to realize their potential through a well-trained employee training system, and
rationally manages the team by using a clear rule of survival of the fittest to reinforce the team’s dynamics.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Section V Important Events
I. Annual general meeting and extraordinary general meeting during the reporting period
1. General meeting of shareholders in this reporting period
Proportion of Date of
Sessions of meetings Types of meetings Opening date Index of disclosure
attended investors disclosure
Announcement on Resolutions of the First
2019 first Extraordinary
January 21st, January 22nd, Extraordinary General M eeting of
extraordinary general general meeting of 22.51%
2019 2019 Shareholders in 2019 (announcement No.:
meeting shareholders
2019-012)
The Announcement on Resolutions of the
2019 second Extraordinary
February 15th, February 16th, Second Extraordinary General M eeting of
extraordinary general general meeting of 22.59%
2019 2019 Shareholders in 2019 (announcement No.:
meeting shareholders
2019-026)
Announcement on Resolutions of the Third
2019 third Extraordinary
April 9th, Extraordinary General M eeting of
extraordinary general general meeting of 22.56% April 8th, 2019
2019 Shareholders in 2019 (announcement No.:
meeting shareholders
2019-044)
Annual General Annual general Announcement on Resolutions of the 2018
M ay 23rd, M ay 24th,
M eeting of meeting of 40.40% Annual General M eeting of Shareholders
2019 2019
Shareholders 2018 shareholders (announcement No.: 2019-073)
2. Request for extraordinary general meeting by preferred shareholders with recovered voting rights
□Applicable √Not Applicable
II. Profit distribution and conversion of capital reserve to share capital during the reporting
period
√Applicable □Not Applicable
Number of bonus shares per 10 shares (share) 0
Number of dividends per 10 shares (RM B) (taxes included) 1
Number of shares converted by capital reserve per 10 shares (share) 0
Share capital base for the distribution proposal (shares) 2,112,251,697
Amount of cash dividend (RM B) (tax included) 211,225,169.70
Amount of cash dividends distributed by other means (such as repurchase of shares) (unit: RM B) 301,961,944.30
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Total cash dividend (including cash dividend distributed by other methods) (RM B) 513,187,114
Distributable profits (RM B) 978,058,151.86
The proportion of total cash dividend (including cash dividend distributed by other methods) to total
100%
profit distribution
Current cash dividends:
Where the Company’s development stage is difficult to distinguish and major expenditure arrangements exist, cash dividend
distribution shall account for not less than 20% of profit distribution of this time
Explanation on the proposal of profit distribution or conversion of capital reserve to share capital
In view of the Company’s sustained and stable profitability and good financial position, as well as the expectations and
confidence for the Company’s future development, fully considering the interests and reasonable demands of investors, the
Company’s Board of Directors proposed a 2019 semi-annual profit distribution plan, in accordance with the No. 3 Listed
Companies Regulatory Guidelines, the Company Law, the Articles of Association and the Company’s shareholder return plan, under
the principle of profit distribution and the premise of ensuring the normal operation of the Company and its long-term development.
After review by the Board of Directors, the Company’s 2019 semi-annual profit distribution plan is as follows: Based on the
total issued share capital (the total registered capital of the Company deducted from the shares of the listed company’s stock
repurchase special securities account) on the dividend registration dat e, the cash dividend of RM B 1 (tax-included) will be
distributed to every 10 shares held by all shareholders. The remaining undistributed profits will be carried forward to the next year;
no bonus shares will be distributed, and no capital reserve will be transferred to share capital.
The above profit distribution plan is consistent with the Company’s performance growth, and also in line with relevant
provisions of the Company Law, the Articles of Association and the Company’s shareholder return plan.
Independent directors of the Company issued independent consents to the above profit distribution plan.
III. Implementation of the Company’s equity incentive plan, employee stock ownership plan
or othe r employee incentives
√Applicable □Not Applicable
Through the first employee stock ownership plan, the Company raised a total of RM B 100 million. Employees held 5,903,187
stocks of listed company by subscribing privately offered stocks of the Company (after the implementat ion of the Company’s 2015
profit distribution plan, the number of held stocks increased to 11,806,374 stocks). These stocks were listed on January 12th , 2016,
and were released from restriction on sales and circulated on January 14th, 2019. For details, please visit www.cninfo.com.cn to refer
to the 2015 Employee Stock Ownership Plan (Draft) (subscription by private offering) and the Notice on Listing and Circulating of
Restricted Stocks (announcement No.: 2019-007).
The second employee stock ownership plan of the Company has been reviewed and approved at the 16th meeting of the 4th
Board of Directors, the 12th meeting of the 4th Board of Supervisors and the 2nd Extraordinary General M eeting of the Company in
2018. In this phase, the employee stock ownership plan is expected to be carried out in a fully self-financing manner with a total
fundraising amount of no more than RMB 250 million. Within six months after the Company’s general meeting of shareholders
approved the employee stock ownership plan, the purchase of underlying stocks will be completed through the secondary market
(including but not limited to competitive price transaction, block trade, agreement transfer, etc.). On September 5th, 2018, the
Company’s second employee stock ownership plan enabled the purchase of a total of 26,310,527 stocks of the Company through
block trades. The stocks purchased via this employee stock ownership plan are locked in accordance with regulations, and the
lock-up period will be from September 6th, 2018 to September 5th, 2019. For details, please visit www.cninfo.com.cn to refer to the
Second Employee Stock Ownership Plan of Wuhu ShunrongSanqi Interactive Entertainment Network Technology Co., Ltd. (Draft)
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
and its summary, the Announcement on Resolutions of the 16th Meeting of the 4th Board of Directors (announcement No.: 2018-044),
the Announcement on Resolutions of the 12th Meeting of the 4th Board of Supervisors (announcement No.: 2018-045), the
Announcement on Resolutions of the Second Extraordinary General Meeting of Shareholders in 2018 (announcement No.: 2018-048),
and the Announcement on the Completion of Stocks Purchase for the Second Employee Stock Ownership Plan (announcement No.:
2018-069).
The Company’s third employee stock ownership plan has been reviewed and approved at the 4th meeting of the 5th Board of
Directors, the 4th meeting of the 5th Board of Supervisors and the 4th extraordinary general meeting of shareholders in 2019. This
employee stock ownership plan will transfer the Company’s shares to its employees at a zero price through the Company’s
repurchased shares from April 11th, 2019 to M ay 7th, 2019. The total of 22,347,537 shares accounts for 1.06% of the Company’s
total share capital. After 12 months from the date on which the last batch of underlying stocks announced are transferred to account
of the employee stock ownership plan, the underlying stocks acquired by means of non-trading transfer and other legally permitted
methods will be unlocked in stages, and the lock-up period is up to 36 months. For details, please visit www.cninfo.com.cn to refer to
the Third Employee Stock Ownership Plan of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd. (Draft)
and its summary, the Announcement on Resolutions of the 4th Meeting of the 5th Board of Directors (announcement No.: 2019-078),
the Announcement on Resolutions of the 4th Meeting of the 5th Board of Supervisors (announcement No.: 2019-079), the
Announcement on Resolutions of the Fourth Extraordinary General Meeting of Shareholders in 2019 (announcement No.:
2019-089).
IV. Social responsibility
1. Major environmental issues
Do the listed company and its subsidiaries become the key pollutant discharging units announced by the environmental protection
department?
No
The listed company and its subsidiaries are not the key pollutant discharging units announced by the environmental protection
department.
2. Performance of social responsibility for targeted poverty alleviation
(1) Targeted poverty alleviation planning
In 2014, the Company initiated and established the Guangdong Youxin Foundation. As of June 30th, 2019, the Company has
donated more than RM B 16 million to Guangdong Youxin Foundation for social welfare undertakings such as poverty alleviation
through high school education in poverty-stricken areas in central and western regions in China.
Specific projects include:
1) Youxin Education Program for Students in Hardship: As of June 30th, 2019, a total of 1,153 high school students in
hardship were financially supported, of which 487 funded high school students completed their high school education. The
enrollment rate of first-tier universities among these funded high school students was over 40%. Some of these funded students were
enrolled by Peking University, Beijing University of Aeronautics and Astronautics, University of Science and Technology of Ch ina,
Zhejiang University, Sun Yat-sen University, Jinan University, Xiamen University, Wuhan University and other well-known
universities.
2) Free Reading Program for Remote Areas: As of June 30th, 2019, the program has brought free reading activities after clas s
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
to over 500 classes of a total of 45 county -level high schools in 34 underdeveloped counties/districts, including 20 national-level poor
counties/districts, thereby directly benefiting more than 40,000 students and teachers.
3) Occupational volunteer program: As of June 30th, 2019, more than 100 company employee volunteers have provided more
than 300 high school students in remote areas with experiences for specialty choices and career planning to help students make good
choices in the future.
(2) Overview of targeted poverty alleviation in the half year
In the first half of 2019, Sanqi Interactive Entertainment spent a total of RM B 1.212 million on public welfare through the
Guangdong Youxin Foundation to financially support 906 high school students, of which 240 high school students participated in the
college entrance examination in 2019; to add 125 free reading corners; to carry out 3 occupational volunteer activities.
In the aspect of poverty alleviation in agriculture and forestry industry, Sanqi Interactive Entertainment supported the
development of local tea industry in Fengqing County (a national-level poor county) in Yunnan Province in the first half of 2019,
with an investment of RM B 30,000.
(3) Achievements of targeted poverty alleviation
M easurement
Index Quantity/implementation
unit
I. Overview - -
Wherein: 1. Capital RM B 10,000 124.2
II. Itemized investment - -
1. Poverty alleviation by industry development - -
Poverty alleviation by agriculture and
Wherein: 1.1 Types of industrial poverty alleviation projects -
forestry industry
1.2 Number of industrial poverty alleviation projects Pcs 1
1.3 Investment amount of industrial poverty alleviation
RM B 10,000 3
projects
2. Poverty alleviation by labor transfer and employment - -
3. Poverty alleviation by relocation and resettlement - -
4. Educational poverty alleviation - -
Wherein: 4.1 Investment amount of subsidies for poor students RM B 10,000 52.9
4.2 Number of poor students subsidized Person 906
4.3 Investment amount of improving educational resources in
RM B 10,000 48.5
poor areas
5. Poverty alleviation by improving health —— ——
6. Poverty alleviation by ecological protection —— ——
7. M inimum guarantee —— ——
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
8. Social poverty alleviation —— ——
9. Other projects —— ——
Wherein: 9.1 Number of projects Pcs 1
9.2 Investment amount RM B 10,000 19.8
III. Awards (contents and classes) - -
The 2019 Social Responsibility Research Report for Chinese Internet
Companies (I) released by the Internet Research Institute of Beijing
Normal University in June 2019 showed that Sanqi Interactive
Entertainment ranked first in the social responsibility list of network
game industry.
In June 2019, the Committee of Corporate Citizenship under the China
Association of Social Workers awarded the honorary title of “One of Top
60 Responsible Brands” to Sanqi Interactive Entertainment.
(4) Future targeted poverty alleviation plan
Sanqi Interactive Entertainment will continue to support the development of high school education in remote and impoverished
areas of the central and western regions in China through various poverty alleviation projects of the Guangdong Youxin Foundation.
It is estimated that the annual public welfare expenditure of Sanqi Interactive Entertainment will reach RM B 3.4 million in 2019,
with an increase by 13% compared with 2018.
In respect of poverty alleviation in agriculture and forestry industry, Sanqi Interactive Entertainment is expected to invest RM B
130,000 in the whole year.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Section VI Equity Changes and Shareholders
I. Changes in equity
1. Statements of changes in equity
Unit: Share
Prior to this change Changes (+/-) in this time After this change
Shares
converted
Stock Dividend
Quantity Proportion from Others Subtotal Quantity Proportion
issue stock
accumulated
reserves
I. Shares with trading limited
904,822,736 42.58% -384,792,453 -384,792,453 520,030,283 24.62%
conditions
2. Shares held by state-owned
23,612,750 1.11% -23,612,750 -23,612,750 0 0.00%
corporate
3. Other domestic-held shares 881,209,986 41.47% -361,179,703 -361,179,703 520,030,283 24.62%
Wherein: Shares held by a
306,965,752 14.45% -306,965,752 -306,965,752 0 0.00%
corporate of M ainland China
Shares held by a
natural person of M ainland 574,244,234 27.02% -54,213,951 -54,213,951 520,030,283 24.62%
China
II. Shares without trading
1,220,047,517 57.42% 372,173,897 372,173,897 1,592,221,414 75.38%
limited conditions
1. Ordinary shares in RM B 1,220,047,517 57.42% 372,173,897 372,173,897 1,592,221,414 75.38%
III. Total shares 2,124,870,253 100.00% -12,618,556 -12,618,556 2,112,251,697 100.00%
Causes for changes in shares
√Applicable □Not Applicable
During the reporting period, 8 shareholders applied for the release of restricted shares on January 14th, 2019, and the number
of released shares was 306,965,752 shares, accounting for 14.4463% of the Company’s total share capital (2,124,870,253 shares) at
that time. For details, please refer to the Notice on Listing and Circulating of Restricted Stocks disclosed at www.cninfo.co m.cn on
January 11th, 2019 (announcement No.: 2019-007).
During the reporting period, 1 shareholder applied for the release of restricted shares on January 23rd, 2019, and the number of
released shares was 23,612,750 shares, accounting for 1.1113% of the Company’s total share capital (2,124,870,253 shares) at that
time. For details, please refer to the Notice on Listing and Circulating of Restricted Stocks disclosed at www.cninfo.com.cn on
January 22nd, 2019 (announcement No.: 2019-011).
The Proposal on Compensatory Shares and Cash Rebate of Compensation Obligors for Repurchase and Cancellation and the
Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Repurchase Related
Matters were reviewed and approved by the 2nd meeting of the 5th Board of Directors held on April 25th, 2019. Due to the failure of
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Shanghai M okun Digital Technology Co., Ltd. to fulfill its 2018 annual performance commitments, Yang Dongmai, Chen Wei and
Wangzhong Investment must provide compensation for performance and impairment, wit h a total amount of RM B 478,790,500, of
which the shares compensation is preferred and the remainder is supplemented in cash. Yang Dongmai and other compensation
obligors are required to provide a total of 12,618,556 compensation shares (the consideration of shares is RM B 217,922,500) and the
cash compensation of RMB 260,868,000. The Company will repurchase and cancel the corresponding compensation shares
according to relevant agreement. For details, please refer to the Announcement on Compensatory Shares and Cash Rebate of
Compensation Obligors for Repurchase and Cancellation disclosed on April 26th, 2019 (announcement No.: 2019-057). The shares
repurchased were cancelled at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited (CSDC) on June
26th, 2019. For details, please refer to the Announcement on Cancellation Completion of Compensatory Shares disclosed by the
Company on June 28th, 2019 at www.cninfo.com.cn (announcement No.: 2019-086).
Approval for changes in shares
□Applicable √Not Applicable
Status of transfer for share change
□Applicable √Not Applicable
Implementation progress of shares repurchase
√Applicable □Not Applicable
The Company held the 23rd meeting of the 4th Board of Directors on January 3rd, 2019 and the first Extraordinary General
M eeting of 2019 on January 21st, 2019, at which the Plan for Repurchasing Shares of the Company by Centralized Competitive
Bidding was reviewed and approved. The Company held the 24th meeting of the 4th Board of Directors on January 21st, 2019, at
which the Proposal on Amending and Supplementing the “Plan for Repurchasing Shares of the Company by Centralized Competitive
Bidding” was reviewed and approved. The Company intends to use its own funds or self-raised funds to concentrate buy back shares
of the Company by centralized competitive bidding. The repurchase amount is not less than RM B 300 million (included) and not
more than RM B 600 million (included), with the repurchase price not exceeding RM B 15.00/share (included). The specific
repurchase quantity is based on the number of shares actually repurchased at the end of the repurchase period. The implementation
period of shares repurchase shall be within 12 months from the date of consideration and approval of the shares repurchase plan by
the Company’s general meeting of shareholders.
As of June 30th, 2019, the Company repurchased shares through a stock repurchase special securities account by centralized
competitive bidding. A total of 22,347,537 shares were repurchased, accounting for 1.06% of the Company’s current total share
capital, with the highest price of RM B 14.02/share and the lowest price of RM B 12.61/share. The total amount paid was RM B
301,961,944.30 (excluding transaction costs). For details, please visit www.cninfo.com.cn to refer to the Announcement on the
Progress of Shares Repurchase (announcement No.: 2019-087).
Implementation progress of reducing held repurchased shares by means of centralized bidding
□Applicable √Not Applicable
Impact of share change on such financial indexes as basic EP S and diluted EPS, net assets value per share of common stockholders,
etc. in recent year or recent period
√Applicable □Not Applicable
During the reporting period, the Company repurchased 22,347,537 shares through a stock repurchase special securities account
by centralized competitive bidding, and also repurchased and cancelled the compensation shares of Yang Dongmai and other
stakeholders to impose certain influences on financial indicators: Basic earnings per s hare increased by RM B 0.001/share, diluted
earnings per share increased by RM B 0.001/share, and net asset value per share decreased by RM B 0.15/share.
Other information disclosed as necessary in the opinion of the Company or as required by securities regul atory institutions
□Applicable √Not Applicable
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
41
2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
2. Changes in restricted shares
√Applicable □Not Applicable
Unit: Share
Restricted Restricted shares Increase in
The number of
shares at the available for trade restricted shares
Name of shareholder restricted shares at the Reason for restriction Lifting date
beginning of during the reporting during the
end of the period
the period period reporting period
On December 29th, 2015, not more than 10%
of all shares; on December 29th, 2016, not
Restricted shares after IPO more than 30% of all shares; on December 29,
Li Weiwei 302,743,539 0 0 302,743,539 and locked shares of 2017, not more than 50% of all shares; on
officers December 29th, 2018, not more than 70% of
all shares; on December 29th, 2019, all shares
can be released.
Wu Weihong 126,153,496 -14,775,000 0 111,378,496 Executives locked shares -
Wu Weidong 125,016,063 -26,820,395 0 98,195,668 Executives locked shares -
China Universal Asset M anagement (CUAM ) - Bank
of Ningbo - Zhuhai Rongxi Equity Investment 59,031,876 -59,031,876 0 0 Restricted shares after IPO January 14th, 2019
Partnership (Limited Partnership)
China Universal Asset M anagement (CUAM ) - Bank
of Ningbo - China Universal Asset M anagement
44,604,486 -44,604,486 0 0 Restricted shares after IPO January 14th, 2019
(CUAM ) - ShunrongSanqi No. 2 Asset M anagement
Plan under Private Placement Plan
Shanghai Panxin Investment M anagement Co., Ltd. -
Pan Feng Private Placement Phase I Private Equity 33,057,850 -33,057,850 0 0 Restricted shares after IPO January 14th, 2019
Investment Fund
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
42
2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Ningbo XindaFengsheng Investment Partnership
32,467,532 -32,467,532 0 0 Restricted shares after IPO January 14th, 2019
(limited partnership)
China Universal Asset M anagement (CUAM ) - Bank
of Ningbo - China Universal Asset M anagement
28,595,042 -28,595,042 0 0 Restricted shares after IPO January 14th, 2019
(CUAM ) - ShunrongSanqi No. 1 Asset M anagement
Plan under Private Placement Plan
M ango M edia Co. Ltd. 23,612,750 -23,612,750 0 0 Restricted shares after IPO January 14th, 2019
Guangzhou AoyuSante Culture Co., Ltd. 23,612,750 -23,612,750 0 0 Restricted shares after IPO January 23rd, 2019
Restricted shares after IPO
Others 105,927,352 -98,214,772 0 7,712,580 and locked shares of -
officers
Total 904,822,736 -384,792,453 0 520,030,283 -- --
3. Issuance and listing of securities
None.
II. Number of shareholde rs and shareholding status
Unit: Share
Total number of common shareholders at Total number of preferred shareholders with recovered voting rights at the end of the
53,291 0
the end of the reporting period reporting period (if any) (see Note 8)
Shareholding of ordinary shareholders holding 5% of total shares or top 10 shareholders
Quantity of common shares Increase/decrease Quantity of Quantity of Pledged or frozen status
Sharehol
Name of shareholder Nature of the shareholder held at the end of the during this restricted common unrestricted Shareholding
ding ratio Quantity
reporting period reporting period shares common shares status
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Natural person of M ainland
Li Weiwei 19.11% 403,658,052 0 302,743,539 100,914,513 Pledge 65,104,000
China
Natural person of M ainland
ZengKaitian 17.48% 369,304,174 0 0 369,304,174 Pledge 48,880,000
China
Natural person of M ainland
Wu Weihong 6.48% 136,927,562 -11,577,100 111,378,496 25,549,066
China
Natural person of M ainland
Wu Weidong 6.20% 130,927,557 98,195,668 32,731,889
China
Natural person of M ainland
Wu Xushun 5.15% 108,837,782 -58,900,000 0 108,837,782 Pledge 39,000,000
China
Natural person of M ainland
Hu Yuhang 2.97% 62,830,436 -1,000,000 7,192,530 55,637,906 Pledge 12,010,000
China
China Universal Asset M anagement
(CUAM ) - Bank of Ningbo - Zhuhai
Others 2.62% 55,337,463 -3,694,413 0 55,337,463
Rongxi Equity Investment Partnership
(Limited Partnership)
China Universal Asset M anagement
(CUAM ) - Bank of Ningbo - China
Universal Asset M anagement (CUAM )
Others 1.79% 37,705,686 -6,898,800 0 37,705,686
- ShunrongSanqi No. 2 Asset
M anagement Plan under Private
Placement Plan
Hong Kong Securities Clearing
Overseas corporation 1.71% 36,020,602 26,252,231 0 36,020,602
Company Limited
Hua life Insurance Company Limited -
Others 1.42% 30,000,000 30,000,000 0 30,000,000
Own Funds
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Information of strategic investor or general legal person who
becomes one of top 10 common shareholders due to rights issue (if Not applicable
any) (refer to note 3)
1. Among the top 10 shareholders of the Company, Wu Xushun is the father of Wu Weihong and Wu Weidong, and Wu Xushun,
Statement on relationship and concerted action among the Wu Weihong and Wu Weidong are shareholders acting in concert. 2. The Company is not aware of any other relationship among
above-mentioned shareholders other top 10 shareholders, and is also unknown whether there is any shareholder acting in concert as stipulated in the Measures on
the Administration of Acquisition of Listed Companies.
Shareholding status of top 10 un-restricted common shareholders
Quantity of held un-restricted common shares at Class of shares
Name of shareholder
the end of the reporting period Class of shares Quantity
ZengKaitian 369,304,174 Common shares in RM B 369,304,174
Wu Xushun 108,837,782 Common shares in RM B 108,837,782
Li Weiwei 100,914,513 Common shares in RM B 100,914,513
Hu Yuhang 55,637,906 Common shares in RM B 55,637,906
China Universal Asset M anagement (CUAM ) - Bank of Ningbo -
55,337,463 Common shares in RM B 55,337,463
Zhuhai Rongxi Equity Investment Partnership (Limited Partnership)
China Universal Asset M anagement (CUAM ) - Bank of Ningbo -
China Universal Asset M anagement (CUAM ) - ShunrongSanqi No. 2 37,705,686 Common shares in RM B 37,705,686
Asset M anagement Plan under Private Placement Plan
Hong Kong Securities Clearing Company Limited 36,020,602 Common shares in RM B 36,020,602
Wu Weidong 32,731,889 Common shares in RM B 32,731,889
Hua life Insurance Company Limited - Own Funds 30,000,000 Common shares in RM B 30,000,000
Wuhu ShunrongSanqi Interactive Entertainment Network
26,310,527 Common shares in RM B 26,310,527
Technology Co., Ltd. - Second Employee Stock Ownership Plan
Information of relationship or concerted action among top 10 1. Among the top 10 shareholders of the Company, Wu Xushun is the father of Wu Weihong and Wu Weidong, and Wu Xushun,
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
un-restricted common shareholders, and between top 10 un-restricted Wu Weihong and Wu Weidong are shareholders acting in concert. 2. The Company is not aware of any other relationship among
common shareholders and top 10 common shareholders other top 10 shareholders, and is also unknown whether there is any shareholder acting in concert as stipulated in the Measures on
the Administration of Acquisition of Listed Companies.
Description for top 10 common shareholders participating in
None
securities margin trading (if any) (see Note 4)
Have top 10 common shareholders and top 10 un-restricted common shareholders conducted repurchasing trades within the report period
□ Yes √ No
Top 10 common shareholders and top 10 un-restricted common shareholders do not conduct repurchasing trades within the report period.
III. Changes in the Controlling Shareholder or Actual Controllers
Change of controlling shareholder during the reporting period
√Applicable □Not Applicable
Name of new controlling shareholders Li Weiwei
Change date April 8th, 2019
Query index of designated website http://www.cninfo.com.cn
Disclosure date of designated website April 9th, 2019
Change of actual controller during the reporting period
√Applicable □Not Applicable
Name of new actual controller Li Weiwei
Change date April 8th, 2019
Query index of designated website http://www.cninfo.com.cn
Disclosure date of designated website April 9th, 2019
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Section VII Financial Report
I. Financial Statements
Unit in statements in financial notes: RM B
1. Consolidated balance sheet
Prepared by: Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
June 30th, 2019
Unit: RM B
Item June 30th, 2019 December 31st, 2018
Current assets:
M onetary fund 1,788,431,889.15 1,532,965,200.05
Transaction settlement funds
Loans to other banks
Trading financial assets 320,000,000.00
Financial assets measured at fair value with
changes included in current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable 1,717,575,938.59 1,298,554,481.23
Receivables financing
Prepayments 502,448,873.30 193,770,132.83
Premiums receivable
Reinsurance premiums receivable
Reinsurance contract reserves receivable
Other receivables 92,363,339.09 792,425,628.90
Wherein: Interest receivable 64,445.20
Dividends receivable
Redemptory monetary capital for sale
Inventories
Contract assets
Assets held-for-sale 7,536,816.46 7,536,816.46
Non-current assets due within one year
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Other current assets 125,703,458.23 356,865,377.91
Total current assets 4,554,060,314.82 4,182,117,637.38
Non-current assets:
Disbursement of advances and loans
Creditors’ investment
Available-for-sale financial assets 1,119,291,025.55
Other long-term investments on bonds
Held-to-maturity investment
Long-term receivables
Long-term equity investments 514,224,823.77 555,602,013.99
Other equity investment 246,635,981.28
Other non-current financial assets 932,481,621.45
Investment property
Fixed assets 36,385,942.05 36,458,454.56
Construction in progress 751,293,007.77
Productive biological assets
Oil and gas assets
Right-of-use asset
Intangible assets 14,279,324.27 14,296,437.04
Development expenditure 6,205,796.16
Goodwill 1,578,065,048.53 1,578,567,397.76
Long-term deferred expenses 74,090,122.83 74,286,546.49
Deferred income tax assets 7,790,147.85 27,325,270.01
Other non-current assets 58,269,048.52 801,611,138.04
Total non-current assets 4,213,515,068.32 4,213,644,079.60
Total assets 8,767,575,383.14 8,395,761,716.98
Current liabilities:
Short-term loan 369,000,000.00
Loan from central bank
Loans from other banks
Trading financial liabilities
Financial liabilities measured at fair value
with changes included in current profits and
losses
Derivative financial liabilities
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Notes payable 30,000,000.00
Accounts payable 1,100,674,856.19 1,082,362,368.29
Account received in advance 180,159,647.52 94,628,742.59
Financial assets sold for repurchase
Receipt of deposits and deposits from other
banks
Receivings from vicariously traded
securities
Receivings from vicariously sold securities
Payroll payable 121,495,008.66 121,978,401.18
Tax payable 88,463,827.01 89,275,803.43
Other payables 552,307,169.79 108,142,599.83
Wherein: Interests payable 52,841.84
Dividends payable 417,980,832.00
Service charges and commissions payable
Reinsured accounts payable
Contract liabilities
Liabilities held for sale
Non-current liabilities due within one year 30,282,389.93 29,599,165.73
Other current liabilities 76,707,849.63 97,256,568.16
Total current liabilities 2,180,090,748.73 1,992,243,649.21
Non-current liabilities:
Reserves for insurance contract
Long-term loans 265,883,241.55 281,176,106.33
Bonds payable
Wherein: Preferred shares
Perpetual bond
LEASE LIABILITIES
Long-term payables
Long-term remuneration payable
Estimated liabilities
Deferred income 2,264,694.54 3,903,715.32
Deferred income tax liabilities 4,735,906.20
Other non-current liabilities
Total non-current liabilities 268,147,936.09 289,815,727.85
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Total liabilities 2,448,238,684.82 2,282,059,377.06
Owners’ equity:
Share capital 2,112,251,697.00 2,124,870,253.00
Other equity instruments
Where: Preferred shares
Perpetual capital securities
Capital reserve 192,239,353.57 298,739,967.21
Less: Treasury stock 302,007,311.87
Other comprehensive incomes 19,514,256.07 46,376,346.58
Special reserves
Surplus reserve 170,477,835.88 170,477,835.88
General risk provisions
Undistributed profit 3,974,141,378.37 3,332,211,003.19
Total equity attributable to parent company
6,166,617,209.02 5,972,675,405.86
owners
M inority shareholders' equity 152,719,489.30 141,026,934.06
Total owners' equities 6,319,336,698.32 6,113,702,339.92
Total liabilities and owners’ equity 8,767,575,383.14 8,395,761,716.98
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
2. Consolidated balance sheet of parent company
Unit: RM B
Item June 30th, 2019 December 31st, 2018
Current assets:
M onetary fund 113,306,255.18 4,325,959.18
Trading financial assets
Financial assets measured at fair value with
changes included in current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Prepayments 63,300.00
Other receivables 528,604,929.21 1,391,766,571.39
Wherein: Interest receivable
Dividends receivable 500,000,000.00
Inventories
Contract assets
Assets held-for-sale
Non-current assets due within one year
Other current assets 3,386,365.63 1,165,393.00
Total current assets 645,297,550.02 1,397,321,223.57
Non-current assets:
Creditors’ investment
Available-for-sale financial assets 179,996,897.11
Other long-term investments on bonds
Held-to-maturity investment
Long-term receivables
Long-term equity investments 6,409,414,609.22 6,402,393,690.49
Other equity investment 60,000,000.00
Other non-current financial assets 114,997,287.11
Investment property
Fixed assets
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use asset
Intangible assets
Development expenditure
Goodwill
Long-term deferred expenses
Deferred income tax assets 8,657.92 8,090.43
Other non-current assets
Total non-current assets 6,584,420,554.25 6,582,398,678.03
Total assets 7,229,718,104.27 7,979,719,901.60
Current liabilities:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Short-term loan 369,000,000.00
Trading financial liabilities
Financial liabilities measured at fair value
with changes included in current profits and
losses
Derivative financial liabilities
Notes payable
Accounts payable 116,619.20 36,357,038.26
Account received in advance
Contract liabilities
Payroll payable 93,813.27 484,767.87
Tax payable 18,326.30 1,745,935.68
Other payables 424,748,346.45 711,616,794.64
Wherein: Interests payable 52,841.84
Dividends payable 417,980,832.00
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 424,977,105.22 1,119,204,536.45
Non-current liabilities:
Long-term loans
Bonds payable
Wherein: Preferred shares
Perpetual bond
LEASE LIABILITIES
Long-term payables
Long-term remuneration payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 424,977,105.22 1,119,204,536.45
Owners’ equity:
Share capital 2,112,251,697.00 2,124,870,253.00
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Other equity instruments
Where: Preferred shares
Perpetual capital securities
Capital reserve 3,845,960,626.18 3,952,461,239.82
Less: Treasury stock 302,007,311.87
Other comprehensive incomes
Special reserves
Surplus reserves 170,477,835.88 170,477,835.88
Undistributed profit 978,058,151.86 612,706,036.45
Total owner’s equity 6,804,740,999.05 6,860,515,365.15
Total liabilities and owners’ equity 7,229,718,104.27 7,979,719,901.60
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
3. Consolidated profit statement
Unit: RM B
Item The first half of 2019 The first half of 2018
I. Total operating income 6,070,957,503.06 3,302,496,146.77
Wherein: Operating incomes 6,070,957,503.06 3,302,496,146.77
Interest incomes
Earned insurance premium
Incomes from service charges and
commissions
II. Total operating cost 4,908,533,506.03 2,445,334,024.33
Wherein: Operating cost 838,986,561.51 886,273,600.84
Interest payment
Service charges and commission
expenses
Refunded premium
Net amount of compensation payout
Net amount of reserves for reinsurance
contract
Policy dividend payment
Reinsured expenses
Taxes and additional charges 20,392,371.96 15,844,704.11
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Selling expenses 3,632,067,521.84 1,143,478,494.94
Administrative expense 88,053,838.68 127,934,924.44
R&D expense 324,699,670.32 257,843,866.07
Financial expenses 4,333,541.72 13,958,433.93
Wherein: Interest fee 18,926,518.37 21,337,173.26
Interest incomes 8,475,803.74 9,241,560.12
Add: Other profits 49,294,108.11 42,885,206.03
Investment profit (“-” indicates the loss) 18,932,969.82 23,747,705.64
Wherein: Investment income of
-6,172,892.49 -4,090,378.50
joint-venture and partnership
Financial assets measured by
amortized cost no longer recognized as income
(loss is marked with “-”)
Exchange income (“-” indicates the loss)
Net open hedge income (loss is marked
with "-")
Income from changes in fair value (“-”
41,603,452.48
indicates the loss)
Credit impairment loss (loss is marked
33,094,388.44
with “-”)
Asset impairment loss (loss is marked
-14,789,077.01 -2,141,680.01
with “-”)
Assets disposal income (“-” indicates the
-77,711.53 4,411.96
loss)
III. Operation profit (“-” indicates the loss) 1,290,482,127.34 921,657,766.06
Add: Non-operating income 3,082,997.15 1,076,547.10
Less: Non-operating expense 2,674,771.67 3,487,862.12
IV Total profit (“-” indicates the total loss) 1,290,890,352.82 919,246,451.04
Less: Income taxes 131,634,742.44 36,437,882.35
V Net profit (“-” indicates the loss) 1,159,255,610.38 882,808,568.69
(I) Classified by going concern
1. Net profit of going concern (“-” indicates
1,159,255,610.38 880,922,320.29
net loss)
2. Net profit of discontinuing operation (“-”
1,886,248.40
indicates net loss)
(II) Classified by attribution of ownership
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
1. Net profits attributable to parent company
1,033,074,405.38 801,378,948.23
owners
2. Gain and loss of minority shareholders 126,181,205.00 81,429,620.46
VI. After-tax net of other comprehensive incomes -25,288.71 -12,085,783.31
After-tax net of other comprehensive incomes
-25,288.71 -11,959,438.02
owned by the owner of the parent company
(I) Other comprehensive incomes that cannot
be classified into profits and losses
1. Re-measurement of changes in
defined benefit plan
2. Other comprehensive incomes that
cannot be reclassified into profits and losses under
the equity method
3. Changes in fair value of investment
in other equity instruments
4. Changes in the fair value of the
company's own credit risk
5. Others
(II) Other comprehensive incomes that would
-25,288.71 -11,959,438.02
be classified into profits and losses
1. Other comprehensive incomes that
can be reclassified into profits and losses under the
equity method
2. Changes in fair value of other debt
investment
3. Loss and profit of change in fair
-16,780,009.82
value of available-for-sale financial assets
4. The amount of financial assets
reclassified into other comprehensive income
5. Loss and profit of available-for-sale
financial assets of held-to-maturity investments
6. Credit depreciation provision for
other credit investment
7. Cash flow hedge reserve
8. Translation difference in the foreign
-25,288.71 4,820,571.80
currency financial statement
9. Others
Other comprehensive incomes net of tax -126,345.29
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
attributed to minority stockholders
VII. Total consolidated income 1,159,230,321.67 870,722,785.38
Total consolidated income attributable to
1,033,049,116.67 789,419,510.21
parent company owners
Total consolidated income attributable to
126,181,205.00 81,303,275.17
minority shareholders
VIII. Earnings per share:
(I) Basic earning per share 0.49 0.37
(II) Diluted earning per share 0.49 0.37
For combination of enterprises under the same control in this period, the net profit realized by the merged party before combination
was: RM B 0.00, net profit realized by the merged party in last times: RM B 0.00.
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
4. Profit statement of parent company
Unit: RM B
Item The first half of 2019 The first half of 2018
I. Operating income 0.00 0.00
Less: Operating cost 0.00 0.00
Taxes and additional charges 8,651.83 1,024,725.00
Selling expenses
Administrative expense 664,215.31 6,601,859.21
R&D expense
Financial expenses 5,026,558.14 5,213,002.36
Wherein: Interest fee 8,467,829.41 10,775,718.70
Interest incomes 3,444,301.05 5,565,824.46
Add: Other profits 25,780.49 50,943.38
Investment profit (“-” indicates the loss) 789,008,294.71 198,698,898.16
Wherein: Investment income of
-979,081.27 -1,301,101.84
joint-venture and partnership
Financial assets measured by
amortized cost no longer recognized as income
(loss is marked with “-”)
Net open hedge income (loss is marked
with "-")
Income from changes in fair value (“-”
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
indicates the loss)
Credit impairment loss (loss is marked
-2,270.00 2,508,054.79
with “-”)
Asset impairment loss (loss is marked
with “-”)
Assets disposal income (“-” indicates the
loss)
II. Operating profit ("-" indicates the loss) 783,332,379.92 188,418,309.76
Add: Non-operating income
Less: Non-operating expense 5,483.09
III. Total profit (“-” indicates the total loss) 783,332,379.92 188,412,826.67
Less: Income taxes -567.49 515,819.10
IV Net profit (“-” indicates the loss) 783,332,947.41 187,897,007.57
(I) Net profit of going concern (“-” indicates
783,332,947.41 187,897,007.57
net loss)
(II) Net profit of discontinuing operation (“-”
indicates net loss)
V Net of tax of other comprehensive incomes
(I) Other comprehensive incomes that cannot
be classified into profit and loss
1. Re-measurement of changes in
defined benefit plan
2. Other comprehensive incomes that
cannot be reclassified into profits and losses under
the equity method
3. Changes in fair value of investment
in other equity instruments
4. Changes in the fair value of the
company's own credit risk
5. Others
(II) Other comprehensive incomes that would
be classified into profits and losses
1. Other comprehensive incomes that
can be reclassified into profits and losses under the
equity method
2. Changes in fair value of other debt
investment
3. Loss and profit of change in fair
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
value of available-for-sale financial assets
4. The amount of financial assets
reclassified into other comprehensive income
5. Loss and profit of available-for-sale
financial assets of held-to-maturity investments
6. Credit depreciation provision for
other credit investment
7. Cash flow hedge reserve
8. Translation difference in the foreign
currency financial statement
9. Others
VI. Total Comprehensive Income 783,332,947.41 187,897,007.57
VII. Earnings per share:
(I) Basic earning per share
(II) Diluted earning per share
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
5. Consolidated cash flow statement
Unit: RM B
Item The first half of 2019 The first half of 2018
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of
5,978,803,476.57 3,438,837,552.44
services
Net increase of deposits from customers and other
banks
Net increase of loans from central bank
Net increase of loans from other financial
institutions
Cash received from receiving insurance premium
of original insurance contract
Net cash received from reinsurance business
Net increase of policy holder deposits and
investment funds
Cash received from interests, fees and
commissions
Net increase of loans from other banks
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Net capital increase of repurchase business
Net cash received from traded securities by
agency
Refunds of taxes and levies 18,148,222.30 26,890,901.13
Cash received from other operating activities 53,303,204.02 23,960,147.51
Sub-total of cash inflows from operating activities 6,050,254,902.89 3,489,688,601.08
Cash paid for purchasing goods and services 663,495,847.03 764,126,180.75
Net increase of customer’s loans and advances
Net increase of deposits in central bank and other
banks
Cash paid for indemnity of original insurance
contract
Net increase in trading financial assets
Net increase in lending funds
Cash paid for interests, service charges and
commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 384,362,339.55 389,536,519.50
Payments of taxes and levies 234,010,246.88 148,413,335.07
Other cash paid relating to operating activities 4,152,031,533.06 1,210,376,547.80
Sub-total of cash outflows from operating activities 5,433,899,966.52 2,512,452,583.12
Net cash flows from operating activities 616,354,936.37 977,236,017.96
II. Cash flows from investing activities:
Cash received from withdrawal of investments 105,816,280.71 118,636,674.46
Cash received from returns on investments 16,060,855.44 31,431,186.39
Net cash received from disposal of fixed assets,
204,690.00 2,174,729.81
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
433,449,673.50
and other business units
Other cash received relating to investing activities 2,488,320,540.52 1,126,557,800.00
Sub-total of cash inflows from investing activities 3,043,852,040.17 1,278,800,390.66
Cash paid to procure fixed assets, intangible
59,645,209.49 131,912,260.35
assets and other long-term assets
Cash paid to acquire investments 78,068,522.99 92,335,901.04
Net increase of pledge loans
Net cash received from payment of subsidiaries
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
and other business entities
Cash payments relating to other investment
2,430,000,000.00 1,126,557,800.00
activities
Sub-total of cash outflows from investing activities 2,567,713,732.48 1,350,805,961.39
Net cash flows from investing activities 476,138,307.69 -72,005,570.73
III. Cash flows from financing activities:
Cash received from capital contribution 19,789,457.72
Wherein: Cash from the investment of minority
19,789,457.72
shareholders of the subsidiaries
Cash received from borrowings 649,000,000.00
Cash received from issuance of debentures
Other cash received relating to financing activities
Sub-total of cash inflows from financing activities 668,789,457.72
Cash repayments of amounts borrowed 383,609,640.58 385,933,010.04
Cash payments for interest expenses and
138,359,549.65 109,256,651.46
distribution of dividends or profits
Wherein: Dividends and profits paid by
122,000,000.00 90,000,000.00
subsidiaries to minority shareholders
Other cash payments relating to financing
302,007,312.87 1,120,317,235.07
activities
Sub-total of cash outflows from financing activities 823,976,503.10 1,615,506,896.57
Net cash flows from financing activities -823,976,503.10 -946,717,438.85
IV Influence of exchange rate change on cash and cash
-128,092.91 -764,348.79
equivalents
V Net increase of cash and cash equivalents 268,388,648.05 -42,251,340.41
Add: Beginning balance of cash and cash
1,515,740,344.79 1,580,910,931.98
equivalents
VI. Balance of cash and cash equivalents at the end of
1,784,128,992.84 1,538,659,591.57
period
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
6. Cash flow statement of parent company
Unit: RM B
Item The first half of 2019 The first half of 2018
I. Cash flows from operating activities:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
Cash received from sales of goods or
rendering of services
Refunds of taxes and levies 50,943.38
Cash received from other operating
1,355,608,209.24 1,717,002,285.35
activities
Sub-total of cash inflows from operating
1,355,608,209.24 1,717,053,228.73
activities
Cash paid for purchasing goods and
services
Cash paid to and on behalf of employees 360,009.16 1,238,172.66
Payments of taxes and levies 1,736,261.21 18,667,911.67
Other cash paid relating to operating
2,256,700,554.73 835,785,281.58
activities
Sub-total of cash outflows from operating
2,258,796,825.10 855,691,365.91
activities
Net cash flows from operating activities -903,188,615.86 861,361,862.82
II. Cash flows from investing activities:
Cash received from withdrawal of
4,999,610.00 50,000,000.00
investments
Cash received from returns on
1,289,987,375.98 6,000,000.00
investments
Net cash received from disposal of fixed
assets, intangible assets and other long-term
assets
Net cash received from disposal of
404,709,910.00
subsidiaries and other business units
Other cash received relating to investing
activities
Sub-total of cash inflows from investing
1,699,696,895.98 56,000,000.00
activities
Cash paid to procure fixed assets,
intangible assets and other long-term assets
Cash paid to acquire investments 8,000,000.00 1,120,000,000.00
Net cash received from payment of
subsidiaries and other business entities
Cash payments relating to other
investment activities
Sub-total of cash outflows from investing 8,000,000.00 1,120,000,000.00
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
activities
Net cash flows from investing activities 1,691,696,895.98 -1,064,000,000.00
III. Cash flows from financing activities:
Cash received from capital contribution
Cash received from borrowings 649,000,000.00
Cash received from issuance of
debentures
Other cash received relating to financing
91,195.70
activities
Sub-total of cash inflows from financing
649,091,195.70
activities
Cash repayments of amounts borrowed 369,000,000.00 369,000,000.00
Cash payments for interest expenses and
8,520,671.25 10,627,267.52
distribution of dividends or profits
Other cash payments relating to
302,007,312.87 491,089.23
financing activities
Sub-total of cash outflows from financing
679,527,984.12 380,118,356.75
activities
Net cash flows from financing activities -679,527,984.12 268,972,838.95
IV Influence of exchange rate change on
cash and cash equivalents
V Net increase of cash and cash equivalents 108,980,296.00 66,334,701.77
Add: Beginning balance of cash and
4,325,959.18 5,437,518.91
cash equivalents
VI. Balance of cash and cash equivalents at
113,306,255.18 71,772,220.68
the end of period
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
7. Consolidated statement of changes in owners' equity
Amount of current period
Unit: RM B
Half year of 2019
Total owners' equity attributable to the parent company
Other equity
instruments
M inority
Item Total owner’s
Perpetu Less: Other General
Special Undistributed shareholders'
Prefe equity
Share capital al Capital reserve Treasur comprehensive Surplus reserve risk Others Subtotal
reserves profit equity
rred Othe
capital y stock incomes provisions
share rs
securiti
s
es
I. Balance at the
end of previous 2,124,870,253.00 298,739,967.21 46,376,346.58 170,477,835.88 3,332,211,003.19 5,972,675,405.86 141,026,934.06 6,113,702,339.92
year
Add: Changes
to accounting -26,836,801.80 26,836,801.80
policies
Fund for
corrections of
errors of previous
period
Business
combination under
the same control
Others
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
II. Beginning
2,124,870,253.00 298,739,967.21 19,539,544.78 170,477,835.88 3,359,047,804.99 5,972,675,405.86 141,026,934.06 6,113,702,339.92
balance at this year
III.
Increased/decrease
302,007
d amount this year -12,618,556.00 -106,500,613.64 -25,288.71 615,093,573.38 193,941,803.16 11,692,555.24 205,634,358.40
,311.87
(“-” indicates
decrease)
(I) Total
comprehensive -25,288.71 1,033,074,405.38 1,033,049,116.67 126,181,205.00 1,159,230,321.67
income
(II) Owner
302,007
investment and -12,618,556.00 -106,500,613.64 -421,126,481.51 7,511,350.24 -413,615,131.27
,311.87
decreased capital
1. Ordinary share
302,007
invested by -12,618,556.00 -106,500,613.64 -421,126,481.51 -421,126,481.51
,311.87
Owners
2. Capital invested
by other equity
instrument holders
3. Amounts of
share-based
payments
recognized in
owners' equity
4. Others 7,511,350.24 7,511,350.24
(III) Profit -122,000,000.0
-417,980,832.00 -417,980,832.00 -539,980,832.00
distribution 0
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
1. Appropriation to
surplus reserves
2. Appropriation of
general risk
reserves
3. Distribution to
-122,000,000.0
owners (or -417,980,832.00 -417,980,832.00 -539,980,832.00
0
shareholders)
4. Others
(IV) Internal
transfer of owners'
equity
1. Capital (or share
capital) from
capital reserves
2. Capital (or share
capital) from
surplus reserves
3. Surplus reserves
for making up
losses
4. Set the income
from the carrying
forward and
retaining of benefit
plan change
amount
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
5. Income from the
carrying forward
and retaining of
other
comprehensive
income
6. Others
(V) Special
reserves
1. Withdrawn
amount of this
period
2. Using amount
this period
(VI) Others
IV Closing
302,007
balance of this 2,112,251,697.00 192,239,353.57 19,514,256.07 170,477,835.88 3,974,141,378.37 6,166,617,209.02 152,719,489.30 6,319,336,698.32
,311.87
accounting period
Amount of previous period
Unit: RM B
Half year of 2018
Total owners' equity attributable to the parent company
Other equity instruments Less: Speci General M inority
Item Total owner’s
Other
Treas al Surplus risk Undistributed Oth shareholders'
Prefe Perpetua equity
Share capital Capital reserve comprehensive Subtotal
ury reser reserve provisio profit ers equity
rred l capital Others
incomes
share securitie stock ves ns
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
s s
I. Balance at
the end of 2,148,110,844.00 1,947,846.62 1,972,639,580.66 -25,087,592.30 99,561,946.09 2,819,597,585.78 7,016,770,210.85 269,888,245.23 7,286,658,456.08
previous year
Add:
Changes to
accounting
policies
Fund
for corrections
of errors of
previous
period
Business
combination
under the same
control
Others
II. Beginning
balance at this 2,148,110,844.00 1,947,846.62 1,972,639,580.66 -25,087,592.30 99,561,946.09 2,819,597,585.78 7,016,770,210.85 269,888,245.23 7,286,658,456.08
year
III.
Increased/decr
eased amount -23,240,591.00 -1,608,657,849.98 -11,959,438.02 588,891,922.93 -1,054,965,956.07 -165,803,442.46 -1,220,769,398.53
this year (“-”
indicates
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
decrease)
(I) Total
comprehensive -11,959,438.02 801,378,948.23 789,419,510.21 81,303,275.17 870,722,785.38
income
(II) Owner
investment and
-23,240,591.00 -1,608,657,849.98 -1,631,898,440.98 -157,106,717.63 -1,789,005,158.61
decreased
capital
1. Ordinary
share invested -23,240,591.00 -375,621,894.06 -398,862,485.06 7,286,957.72 -391,575,527.34
by Owners
2. Capital
invested by
other equity
instrument
holders
3. Amounts of
share-based
payments
recognized in
owners' equity
4. Others -1,233,035,955.92 -1,233,035,955.92 -164,393,675.35 -1,397,429,631.27
(III) Profit
-212,487,025.30 -212,487,025.30 -90,000,000.00 -302,487,025.30
distribution
1.
Appropriation
to surplus
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
reserves
2.
Appropriation
of general risk
reserves
3. Distribution
to owners (or -212,487,025.30 -212,487,025.30 -90,000,000.00 -302,487,025.30
shareholders)
4. Others
(IV) Internal
transfer of
owners' equity
1. Capital (or
share capital)
from capital
reserves
2. Capital (or
share capital)
from surplus
reserves
3. Surplus
reserves for
making up
losses
4. Set the
income from
the carrying
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
forward and
retaining of
benefit plan
change amount
5. Income from
the carrying
forward and
retaining of
other
comprehensive
income
6. Others
(V) Special
reserves
1. Withdrawn
amount of this
period
2. Using
amount this
period
(VI) Others
IV Closing
balance of this
2,124,870,253.00 1,947,846.62 363,981,730.68 -37,047,030.32 99,561,946.09 3,408,489,508.71 5,961,804,254.78 104,084,802.77 6,065,889,057.55
accounting
period
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
8. Statement of equity changes of parent company owner
Amount of current period
Unit: RM B
Half year of 2019
Other equity instruments Other
Item Less: Treasury Special Undistributed Total owner’s
Share capital Preferred Perpetual capital Capital reserve comprehensive Surplus reserves Others
Others stock reserves profit equity
shares securities incomes
I. Balance at the end of
2,124,870,253.00 3,952,461,239.82 170,477,835.88 612,706,036.45 6,860,515,365.15
previous year
Add: Changes to
accounting policies
Fund for
corrections of errors of
previous period
Others
II. Beginning balance at this
2,124,870,253.00 3,952,461,239.82 170,477,835.88 612,706,036.45 6,860,515,365.15
year
III. Increased/decreased
amount this year (“-” -12,618,556.00 -106,500,613.64 302,007,311.87 365,352,115.41 -55,774,366.10
indicates decrease)
(I) Total comprehensive
783,332,947.41 783,332,947.41
income
(II) Owner investment and
-12,618,556.00 -106,500,613.64 302,007,311.87 -421,126,481.51
decreased capital
1. Ordinary share invested -12,618,556.00 -106,500,613.64 302,007,311.87 -421,126,481.51
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
by Owners
2. Capital invested by other
equity instrument holders
3. Amounts of share-based
payments recognized in
owners' equity
4. Others
(III) Profit distribution -417,980,832.00 -417,980,832.00
1. Appropriation to surplus
reserves
2. Distribution to owners (or
-417,980,832.00 -417,980,832.00
shareholder)
3. Others
(IV) Internal transfer of
owners' equity
1. Capital (or share capital)
from capital reserves
2. Capital (or share capital)
from surplus reserves
3. Surplus reserves for
making up losses
4. Set the income from the
carrying forward and
retaining of benefit plan
change amount
5. Income from the carrying
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
forward and retaining of
other comprehensive
income
6. Others
(V) Special reserves
1. Withdrawn amount of
this period
2. Using amount this period
(VI) Others
IV Closing balance of this
2,112,251,697.00 3,845,960,626.18 302,007,311.87 170,477,835.88 978,058,151.86 6,804,740,999.05
accounting period
Amount of previous period
Unit: RM B
Half year of 2018
Other equity instruments Less: Other
Item Special Surplus Undistributed Total owner’s
Share capital Preferred Perpetual capital Capital reserve Treasury comprehensi Others
Others reserves reserves profit equity
shares securities stock ve incomes
I. Balance at the end of
2,148,110,844.00 4,401,934,248.25 99,561,946.09 399,437,078.96 7,049,044,117.30
previous year
Add: Changes to
accounting policies
Fund for corrections
of errors of previous period
Others
II. Beginning balance at this 2,148,110,844.00 4,401,934,248.25 99,561,946.09 399,437,078.96 7,049,044,117.30
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
year
III. Increased/decreased
amount this year (“-” indicates -23,240,591.00 -378,124,394.06 -24,590,017.73 -425,955,002.79
decrease)
(I) Total comprehensive
187,897,007.57 187,897,007.57
income
(II) Owner investment and
-23,240,591.00 -378,124,394.06 -401,364,985.06
decreased capital
1. Ordinary share invested by
-23,240,591.00 -378,124,394.06 -401,364,985.06
Owners
2. Capital invested by other
equity instrument holders
3. Amounts of share-based
payments recognized in
owners' equity
4. Others
(III) Profit distribution -212,487,025.30 -212,487,025.30
1. Appropriation to surplus
reserves
2. Distribution to owners (or
-212,487,025.30 -212,487,025.30
shareholder)
3. Others
(IV) Internal transfer of
owners' equity
1. Capital (or share capital)
from capital reserves
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2019 Semi-annual Report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd.
2. Capital (or share capital)
from surplus reserves
3. Surplus reserves for making
up losses
4. Set the income from the
carrying forward and retaining
of benefit plan change amount
5. Income from the carrying
forward and retaining of other
comprehensive income
6. Others
(V) Special reserves
1. Withdrawn amount of this
period
2. Using amount this period
(VI) Others
IV Closing balance of this
2,124,870,253.00 4,023,809,854.19 99,561,946.09 374,847,061.23 6,623,089,114.51
accounting period
Legal representative: Li Weiwei Accounting supervisor: Ye Wei Legal representative of the accounting firm: Ye Wei
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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9. First implementation of new financial instrument standards, new revenue standards, new lease standards,
adjustment of relevant items in financial statements at the beginning of the year
√Applicable □Not Applicable
Consolidated balance sheet
Unit: RM B
Item December 31st, 2018 Jan 1st, 2019 Adjustment
Current assets:
M onetary fund 1,532,965,200.05 1,532,965,200.05
Transaction settlement
funds
Loans to other banks
Trading financial assets 116,000,000.00 116,000,000.00
Financial assets
measured at fair value with
changes included in current
profits and losses
Derivative financial
assets
Notes receivable
Accounts receivable 1,298,554,481.23 1,298,554,481.23
Receivables financing
Prepayments 193,770,132.83 193,770,132.83
Premiums receivable
Reinsurance premiums
receivable
Reinsurance contract
reserves receivable
Other receivables 792,425,628.90 792,425,628.90
Wherein: Interest
64,445.20 64,445.20
receivable
Dividends
0.00
receivable
Redemptory monetary
capital for sale
Inventories
Contract assets
Assets held-for-sale 7,536,816.46 7,536,816.46
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Non-current assets due
within one year
Other current assets 356,865,377.91 240,865,377.91 -116,000,000.00
Total current assets 4,182,117,637.38 4,182,117,637.38
Non-current assets:
Disbursement of
advances and loans
Creditors’ investment
Available-for-sale
1,119,291,025.55 -1,119,291,025.55
financial assets
Other long-term
investments on bonds
Held-to-maturity
investment
Long-term receivables
Long-term equity
555,602,013.99 555,602,013.99
investments
Other equity investment 196,571,394.67 196,571,394.67
Other non-current
922,719,630.88 922,719,630.88
financial assets
Investment property
Fixed assets 36,458,454.56 36,458,454.56
Construction in progress 0.00
Productive biological
assets
Oil and gas assets
Right-of-use asset
Intangible assets 14,296,437.04 14,296,437.04
Development
6,205,796.16 6,205,796.16
expenditure
Goodwill 1,578,567,397.76 1,578,567,397.76
Long-term deferred
74,286,546.49 74,286,546.49
expenses
Deferred income tax
27,325,270.01 27,325,270.01
assets
Other non-current assets 801,611,138.04 801,611,138.04
Total non-current assets 4,213,644,079.60 4,213,644,079.60
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Total assets 8,395,761,716.98 8,395,761,716.98
Current liabilities:
Short-term loan 369,000,000.00 369,000,000.00
Loan from central bank
Loans from other banks
Trading financial
liabilities
Financial liabilities
measured at fair value with
changes included in current
profits and losses
Derivative financial
liabilities
Notes payable 0.00
Accounts payable 1,082,362,368.29 1,082,362,368.29
Account received in
94,628,742.59 94,628,742.59
advance
Financial assets sold for
repurchase
Receipt of deposits and
deposits from other banks
Receivings from
vicariously traded securities
Receivings from
vicariously sold securities
Payroll payable 121,978,401.18 121,978,401.18
Tax payable 89,275,803.43 89,275,803.43
Other payables 108,142,599.83 108,142,599.83
Wherein: Interests
52,841.84 52,841.84
payable
Dividends
0.00
payable
Service charges and
commissions payable
Reinsured accounts
payable
Contract liabilities
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Liabilities held for sale
Non-current liabilities
29,599,165.73 29,599,165.73
due within one year
Other current liabilities 97,256,568.16 97,256,568.16
Total current liabilities 1,992,243,649.21 1,992,243,649.21
Non-current liabilities:
Reserves for insurance
contract
Long-term loans 281,176,106.33 281,176,106.33
Bonds payable
Wherein: Preferred
shares
Perpetual
bond
LEASE LIABILITIES
Long-term payables
Long-term remuneration
payable
Estimated liabilities
Deferred income 3,903,715.32 3,903,715.32
Deferred income tax
4,735,906.20 4,735,906.20
liabilities
Other non-current
liabilities
Total non-current liabilities 289,815,727.85 289,815,727.85
Total liabilities 2,282,059,377.06 2,282,059,377.06
Owners’ equity:
Share capital 2,124,870,253.00 2,124,870,253.00
Other equity instruments
Where: Preferred
shares
Perpetual
capital securities
Capital reserve 298,739,967.21 298,739,967.21
Less: Treasury stock
Other comprehensive 46,376,346.58 19,539,544.78 -26,836,801.80
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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incomes
Special reserves
Surplus reserve 170,477,835.88 170,477,835.88
General risk provisions
Undistributed profit 3,332,211,003.19 3,359,047,804.99 26,836,801.80
Total equity attributable to
5,972,675,405.86 5,972,675,405.86
parent company owners
M inority shareholders'
141,026,934.06 141,026,934.06
equity
Total owners' equities 6,113,702,339.92 6,113,702,339.92
Total liabilities and owners’
8,395,761,716.98 8,395,761,716.98
equity
Adjustment description
In accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and M easurement of Financial Instruments,
the opening book value of items under the consolidated balance sheet is adjusted as follows:
1. The bank financial products of RM B 116,000,000.00 under other current assets are reclassified as trading financial assets;
2. The available-for-sale financial assets of RM B 1,119,291,025.55 are reclassified as other equity instrument and other non-current
financial assets;
3. The profits and losses from change of fair value and income tax expenses recognized as other comprehensive income in the previous
years of RM B 26,836,801.80 were transferred to undistributed profits.
Consolidated balance sheet of parent company
Unit: RM B
Item December 31st, 2018 Jan 1st, 2019 Adjustment
Current assets:
M onetary fund 4,325,959.18 4,325,959.18
Trading financial assets
Financial assets measured at fair value with
changes included in current profits and losses
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayments 63,300.00 63,300.00
Other receivables 1,391,766,571.39 1,391,766,571.39
Wherein: Interest receivable
Dividends receivable 500,000,000.00 500,000,000.00
Inventories
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Contract assets
Assets held-for-sale
Non-current assets due within one year
Other current assets 1,165,393.00 1,165,393.00
Total current assets 1,397,321,223.57 1,397,321,223.57
Non-current assets:
Creditors’ investment
Available-for-sale financial assets 179,996,897.11 -179,996,897.11
Other long-term investments on bonds
Held-to-maturity investment
Long-term receivables
Long-term equity investments 6,402,393,690.49 6,402,393,690.49
Other equity investment 60,000,000.00 60,000,000.00
Other non-current financial assets 119,996,897.11 119,996,897.11
Investment property
Fixed assets
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use asset
Intangible assets
Development expenditure
Goodwill
Long-term deferred expenses
Deferred income tax assets 8,090.43 8,090.43
Other non-current assets
Total non-current assets 6,582,398,678.03 6,582,398,678.03
Total assets 7,979,719,901.60 7,979,719,901.60
Current liabilities:
Short-term loan 369,000,000.00 369,000,000.00
Trading financial liabilities
Financial liabilities measured at fair value
with changes included in current profits and losses
Derivative financial liabilities
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Notes payable
Accounts payable 36,357,038.26
Account received in advance
Contract liabilities
Payroll payable 484,767.87 484,767.87
Tax payable 1,745,935.68 1,745,935.68
Other payables 711,616,794.64 711,616,794.64
Wherein: Interests payable 52,841.84 52,841.84
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,119,204,536.45 1,119,204,536.45
Non-current liabilities:
Long-term loans
Bonds payable
Wherein: Preferred shares
Perpetual bond
LEASE LIABILITIES
Long-term payables
Long-term remuneration payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 1,119,204,536.45 1,119,204,536.45
Owners’ equity:
Share capital 2,124,870,253.00 2,124,870,253.00
Other equity instruments
Where: Preferred shares
Perpetual capital securities
Capital reserve 3,952,461,239.82 3,952,461,239.82
Less: Treasury stock
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Other comprehensive incomes
Special reserves
Surplus reserves 170,477,835.88 170,477,835.88
Undistributed profit 612,706,036.45 612,706,036.45
Total owner’s equity 6,860,515,365.15 6,860,515,365.15
Total liabilities and owners’ equity 7,979,719,901.60 7,979,719,901.60
Adjustment description
In accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and M easurement of Financial Instruments,
the parent company’s opening available-for-sale financial assets of RM B 1,119,291,025.55 was reclassified as other equity
investment and other non-current financial assets.
II. Item Notes to Consolidated Financial State ment
1. Monetary funds
Unit: RM B
Item Ending balance Beginning balance
Cash on hand 29,585.32
Bank deposit 1,755,552,866.06 1,526,769,012.67
Other monetary funds 32,879,023.09 6,166,602.06
Total 1,788,431,889.15 1,532,965,200.05
Wherein: Total amount deposited in the
472,745,413.06 382,759,855.68
other regions beyond M ainland China
Other notes
2. Trading financial assets
Unit: RM B
Item Ending balance Beginning balance
Financial assets measured at fair value with changes
320,000,000.00 116,000,000.00
included in current profits and losses
Wherein:
Financial products 320,000,000.00 116,000,000.00
Wherein:
Total 320,000,000.00 116,000,000.00
Other notes:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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3. Accounts receivables
(1) Disclosure of accounts receivable types
Unit: RM B
Ending balance Balance at the beginning of the period
Type Book balance Provision for bad debts Book balance Provision for bad debts
Book value Book value
Amount Proportion Amount Accrual proportion Amount Proportion Amount Accrual proportion
Account receivable
individually accrued for 10,681,600.08 0.25% 10,681,600.08 100.00% 0.00% 0.00%
provision of bad account
Wherein:
Accounts receivable with
bad debt provision 1,736,488,867.38 99.75% 18,912,928.79 1.09% 1,717,575,938.59 1,367,120,440.35 100.00% 68,565,959.12 5.02% 1,298,554,481.23
accrued by portfolio
Wherein:
Credit term portfolio 1,363,538,028.79 78.04% 0.00 0.00% 1,363,538,028.79
Aging portfolio 372,950,838.59 21.35% 18,912,928.79 1.09% 354,037,909.80 1,367,120,440.35 100.00% 68,565,959.12 5.02% 1,298,554,481.23
Total 1,747,170,467.46 100.00% 29,594,528.87 1.69% 1,717,575,938.59 1,367,120,440.35 100.00% 68,565,959.12 5.02% 1,298,554,481.23
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Provision for bad debts by single account RM B 10,681,600.08
Unit: RM B
Ending balance
Name
Book balance Provision for bad debts Accrual proportion Reason for accruing
Combined transport Estimated to be
10,681,600.08 10,681,600.08 100.00%
customers unrecoverable
Total 10,681,600.08 10,681,600.08 -- --
Provision for bad debts by single account
Unit: RM B
Ending balance
Name
Book balance Provision for bad debts Accrual proportion Reason for accruing
Provision for bad debts by portfolio: RM B 0.00
Unit: RM B
Ending balance
Name
Book balance Provision for bad debts Accrual proportion
Credit term portfolio 1,363,538,028.79 0.00 0.00%
Total 1,363,538,028.79 0.00 --
Description of basis for this portfolio determination:
The debtor has no payment obligation for the receivables within the credit term, and historical experiences indicate that no debt
default of customer occurs during the credit term.
Provision for bad debts by portfolio: RM B 18,912,928.79
Unit: RM B
Ending balance
Name
Book balance Provision for bad debts Accrual proportion
Within 1 year (inclusive) 368,256,294.35 18,412,814.71 5.00%
1-2 year(s) 4,596,348.05 459,634.81 10.00%
2 - 3 years 43,094.14 12,928.24 30.00%
3 - 4 years 55,102.05 27,551.03 50.00%
4 - 5 years 0.00 0.00 80.00%
Over 5 years 0.00 0.00 100.00%
Total 372,950,838.59 18,912,928.79 --
Description of basis for this portfolio determination:
Receivables of same aging share similar characteristics of credit risk
Provision for bad debts by portfolio:
Unit: RM B
Name Ending balance
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Book balance Provision for bad debts Accrual proportion
Description of basis for this portfolio determination:
If the bad debt provision for accounts receivable is made according to the general model of expected credit losses, please disclose
relevant information of bad debt provision according to the disclosure method of other receivables:
□Applicable √Not Applicable
Disclosure by aging
Unit: RM B
Aging Balance at the end of the period
Within 1 year (inclusive) 1,736,940,256.66
1-2 year(s) 9,410,985.41
2 - 3 years 764,123.34
Over 3 years 55,102.05
3 - 4 years 55,102.05
4 - 5 years 0.00
Over 5 years 0.00
Total 1,747,170,467.46
The Company is required to comply with the disclosure requirements of the SZSE Industrial Information Disclosure Guide No. 12 -
Listed Companies Engaged in Software and IT Services.
The Company does not have any account receivable with age of more than 3 years and high single amount.
(2) Reserve of the bad debts that are accrued, withdrew and taken back in current period
Accrued provision for bad debts in this period:
Unit: RM B
Change in this period
Type Beginning balance Recovery or Cancellation Ending balance
Accrual
reversal after verification
Account receivable individually
10,681,600.08 10,681,600.08
accrued for provision of bad account
Accounts receivable with bad debt
68,565,959.12 49,653,030.33 18,912,928.79
provision accrued by portfolio
Total 68,565,959.12 10,681,600.08 49,653,030.33 0.00 29,594,528.87
Including important provision for bad debt returned back or taken back in this current period:
Unit: RM B
Organization name Amount returned back or taken back Change the way of return
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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(3) Top five arrears balance of accounts receivable by the end of the period
Unit: RM B
Organization Book balance Proportion in account receivable Provision for bad debts
name of accounts receivable
No. 1 648,795,581.09 37.13% 11,945,847.09
No. 2 270,608,142.11 15.49% -
No. 3 128,011,890.04 7.33% 781.79
No. 4 96,887,602.15 5.55% 36,238.51
No. 5 92,441,041.73 5.29% 85,324.25
Total 1,236,744,257.12 70.79% 12,068,191.64
4. Prepayments
(1) Prepayments listed by aging
Unit: RM B
Closing balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 455,618,358.29 90.68% 146,868,718.41 75.80%
1 - 2 year(s) 38,847,294.03 7.73% 39,028,966.61 20.14%
2 - 3 years 4,253,718.15 0.85% 4,642,733.10 2.40%
Over 3 years 3,729,502.83 0.74% 3,229,714.71 1.66%
Total 502,448,873.30 -- 193,770,132.83 --
The explanation for the reasons of failure in in-time settlement for significant amount of advance payment with aging of more than 1
year:
Unit: RM B
Organization name Ending balance Unsettlement reasons
Prepaid supplier I 6,163,981.68 The game has not been launched
Prepaid supplier II 5,846,083.03 Prepayments are being deducted
Subtotal 12,010,064.71
(2) Top five ending balances of prepayments classified by prepayment objects:
Unit: RM B
Organization name Ending balance Proportion in remaining pre-paid amount
No. 1 126,089,301.17 25.09%
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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No. 2 60,129,492.40 11.97%
No. 3 34,398,708.08 6.85%
No. 4 29,337,279.59 5.84%
No. 5 28,267,619.07 5.63%
Subtotal 278,222,400.31 55.38%
Other notes:
5. Other receivables
Unit: RM B
Item Ending balance Beginning balance
Interests receivable 64,445.20
Dividends receivable 0.00
Other receivables 92,363,339.09 792,361,183.70
Total 92,363,339.09 792,425,628.90
(1) Interest receivable
1) Classification of interests payable
Unit: RM B
Item Ending balance Beginning balance
Fixed-term deposits 0.00 64,445.20
Total 64,445.20
(2) Other receivables
1) Classification of other receivables based on the fund nature
Unit: RM B
Fund nature Ending book value Opening book balance
Security, deposit and reserve 55,705,678.80 69,863,183.59
Receivable sharing and royalty 16,154,711.03 33,563,609.65
Equity-related receivables 47,176,888.88 448,486,888.88
Performance compensation receivables 0.00 260,868,040.88
Others 6,429,081.90 7,073,939.79
Total 125,466,360.61 819,855,662.79
2) Accrual of bad debt provision
Unit: RM B
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Stage I Stage II Stage III
Expected credit losses for the Expected credit losses for
Provision for bad debts Expected credit losses in Total
entire duration (without credit the entire duration (with
the next 12 months
impairment) credit impairment)
Balance on January 1st, 2019 27,294,479.09 200,000.00 27,494,479.09
Balance on January 1st, 2019
- - - -
is in the period
- Transferred to Stage II -1,859,300.93 1,859,300.93 0.00
Accrual of the period 18,738,152.85 18,738,152.85
Reversal of the period 13,129,610.42 13,129,610.42
Balance on June 30th, 2019 12,305,567.74 20,797,453.78 33,103,021.52
For the provision for loss, is there any major change in book balances of the period?
□Applicable √Not Applicable
Disclosure by aging
Unit: RM B
Aging Balance at the end of the period
Within 1 year (inclusive) 59,355,299.57
Within 1 year (inclusive) 59,355,299.57
1-2 year(s) 56,060,036.04
2 - 3 years 2,533,902.43
Over 3 years 7,517,122.57
3 - 4 years 5,217,110.07
4 - 5 years 12.50
Over 5 years 2,300,000.00
Total 125,466,360.61
3) Reserve of the bad debts that are accrued, withdrew and taken back in current period
Accrued provision for bad debts in this period:
Unit: RM B
Change in this period
Type Beginning balance Recovery or Ending balance
Accrual
reversal
Account receivable individually accrued for
200,000.00 20,597,453.78 20,797,453.78
provision of bad account
Accounts receivable with bad debt provision
27,294,479.09 14,988,911.35 12,305,567.74
accrued by portfolio
Total 27,494,479.09 20,597,453.78 14,988,911.35 33,103,021.52
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Including important provision for bad debt transferred back or recovered in this period:
Unit: RM B
Organization name Amount carried forward or recovered Change the way of return
4) Other accounts receivable in top five based on year-end balance collected from arrears party
Unit: RM B
Proportion in total Ending balance of
Organization name Fund nature Ending balance Aging ending balance of provision for bad
other receivables debts
No. 1 Equity disposal receivables 42,768,000.00 1 - 2 year(s) 34.47% 10,926,508.41
No. 2 Security, deposit and reserve 24,450,000.00 1 year 25.15% 1,222,500.00
No. 3 Security, deposit and reserve 20,000,000.00 1 year 20.57% 1,000,000.00
No. 4 Amount to be recovered 11,142,625.96 1 - 2 year(s) 2.09% 9,214,262.60
No. 5 Amount to be recovered 5,000,000.00 2 - 3 years 2.71% 2,500,000.00
Total -- 103,360,625.96 -- 84.99% 24,863,271.01
6. Assets held-for-sale
Unit: RM B
Carrying value at
Ending book Impairment Estimated Estimated
Item the end of the Fair value
value provision disposal expense disposal date
period
Available-for-sale December 31st,
7,536,816.46 7,536,816.46 7,536,816.46 0.00
financial assets 2019
Total 7,536,816.46 7,536,816.46 7,536,816.46 0.00 --
Other notes:
The above assets are expected to be disposed of within the next 12 months.
7. Other current assets
Have the new revenue standards been implemented?
□ Yes √ No
Unit:RM B
Item Ending balance Beginning balance
Retained VAT and VAT to be certified 119,783,320.81 115,335,389.59
Prepaid income tax 5,920,137.42 6,410,819.68
Performance compensation receivables 0.00 119,119,168.64
Total 125,703,458.23 240,865,377.91
Other notes:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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The opening balance of the receivable performance compensation was generated because that Shanghai M okun failed to fulfill its
2018 annual performance commitment and its original shareholders’ compensation shares of 23,240,591 shares in total were
repurchased and cancelled according to relevant agreements during the reporting period.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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8. Long-term equity investment
Unit: RM B
Increase or decrease in this period
Profit and loss Other Profit or cash Ending balance
Opening balance Other Withdrawn Ending balance
Invested company Additional Negative on investments comprehensiv dividend of depreciation
(book value) equity impairment Others (book value)
investments investment confirmed with e income declared to be reserves
change provision
equity method adjustment distributed
I. Joint ventures
II. Associates
Yangzhou Fuhai Sanqi Internet Cultural
48,136,104.35 -1,986,511.87 46,149,592.48
Investment Center (Limited Partnership)
Shanghai Fenghua Qiushi Culture M edia Co.,
132,678,347.40 1,925,411.11 134,603,758.51
Ltd.
New Cues (Beijing) Television Investment
101,285,461.34 -1,039,585.34 100,245,876.00
Co., Ltd.
Chengdu Pengwan Technology Co., Ltd. 55,790,372.01 -263,915.66 55,526,456.35
Sanqi Guangzheng (Guangzhou) Cultural
Technology Investment Partnership (Limited 45,000,000.00 45,000,000.00
Partnership)
M ango (Xiamen) Creative Incubation Equity
Investment Fund Partnership (Limited 39,163,509.62 29,315,220.72 27,828.40 9,876,117.30
Partnership)
Shanghai Yuhouyi Network Technology Co.,
20,233,958.82 -272,274.96 19,961,683.86
Ltd.
Shanghai Jueli Culture M edia Co., Ltd. 27,593,699.69 -979,081.27 26,614,618.42
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Chengdu M ofei Technology Co., Ltd. 15,777,419.05 -1,137,760.98 14,639,658.07
Jiangsu Yezi Network Technology Co., Ltd. 13,901,748.49 -328,184.42 13,573,564.07
Chengdu Popcorn Interactive Entertainment
11,611,786.40 -510,002.93 11,101,783.47
Technology Co., Ltd.
Others 44,429,606.82 8,900,000.00 -1,608,814.57 14,789,077.01 36,931,715.24 26,949,181.42
Subtotal 555,602,013.99 8,900,000.00 29,315,220.72 -6,172,892.49 14,789,077.01 514,224,823.77 26,949,181.42
Total 555,602,013.99 8,900,000.00 29,315,220.72 -6,172,892.49 14,789,077.01 514,224,823.77 26,949,181.42
Other notes:
“Others” refer to a summary of equity investment with an ending balance of less than RM B 10 million.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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9. Other equity investment
Unit: RM B
Item Ending balance Beginning balance
Shenzhen M okylin Technology Co., Ltd. 60,000,000.00 60,000,000.00
Shenzhen QiFun Network Corp. Ltd. 50,000,000.00 50,000,000.00
Archiact Interactive Ltd. 21,650,889.40 21,624,422.86
Karma Game Beijing Limited 17,000,000.00
Karma Game HK Limited 12,918,608.00
Guangzhou Xuyang Network Technology Co., Ltd. 11,000,000.00 1,000,000.00
Tianshe (Shanghai) Culture & M edia Co., Ltd. 10,000,000.00 10,000,000.00
Shanghai Original Plan Culture & M edia Co. Ltd. 10,000,000.00 10,000,000.00
Others 54,066,483.88 43,946,971.81
Total 246,635,981.28 196,571,394.67
Amount of other Reason for measurement Reason for other
Recognized
Accumula Accumula comprehensive by fair value and change comprehensive
Unit: RM BProject name dividend
ted gains ted losses income transferred being recognized in other income transferred to
income
to retained income comprehensive income retained income
Shenzhen M okylin Technology Co., Non-trading equity
Ltd. investment
Non-trading equity
Shenzhen QiFun Network Corp. Ltd.
investment
Non-trading equity
Archiact Interactive Ltd.
investment
Non-trading equity
Karma Game Beijing Limited
investment
Non-trading equity
Karma Game HK Limited
investment
Guangzhou Xuyang Network Non-trading equity
Technology Co., Ltd. investment
Tianshe (Shanghai) Culture & M edia Non-trading equity
Co., Ltd. investment
Shanghai Original Plan Culture & Non-trading equity
M edia Co. Ltd. investment
Non-trading equity
Others
investment
Other notes：
“Others” refer to a summary of equity investment with an ending balance of less than RM B 10 million.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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10. Other non-current financial assets
Unit: RM B
Item Ending balance Beginning balance
Shanghai M ango Creative Equity Investment Fund (L.P.) 173,581,491.41 173,581,491.41
X.D. Network 100,055,903.60 100,050,000.00
Tianjin Digital Color Interactive Technology Co., Ltd. 80,000,000.00 80,000,000.00
M ango Excellent M edia Co., Ltd. 74,486,294.30 67,155,608.00
Hangzhou Southern Pictures Co., Ltd. 64,997,287.11 69,996,897.11
Chengdu 91ACT Technology Company 52,731,000.00 52,731,000.00
Shenzhen Zhonghui Television Culture Communication Co.,
50,000,000.00 50,000,000.00
Ltd.
Jiangsu M ingtong Information Technology Co., Ltd. 50,000,000.00 50,000,000.00
Beijing Chinese Anci Equity Investment Fund M anagement
42,748,550.00 50,000,000.00
Center (Limited Partnership)
SNK Corporation 36,600,182.47 1,036.35
Hebei Youying Culture Spreading Co., Ltd. 26,800,000.00 26,800,000.00
Beijing Chenming M edia Co., Ltd. 25,000,000.00 25,000,000.00
Tianjin Purple Dragon Singular Point Interactive Entertainment
23,115,789.90 23,115,789.90
Co., Ltd.
Zen-game Technology 17,217,313.29 18,000,000.00
Hangzhou Honghua Duoduo Network Technology Co., Ltd. 16,978,390.00 16,978,390.00
Shanghai Touch Culture Communication Co., Ltd. 15,000,000.00 15,000,000.00
YHKT Entertainment Co., Ltd. 14,400,000.00 14,400,000.00
Suzhou Youge Huaxin Venture Investment Center (Limited
10,500,000.00
Partnership)
Shanghai Zhangmeng Network Technology Co., Ltd. 10,000,000.00 10,000,000.00
Najia Technology (Shenzhen) Co., Ltd. 40,000,000.00
Others 48,269,419.37 39,909,418.11
Total 932,481,621.45 922,719,630.88
Other notes:
“Others” refer to a summary of equity investment with an ending balance of less than RM B 10 million.
11. Fixed assets
Unit: RM B
Item Ending balance Beginning balance
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Fixed assets 36,385,942.05 36,458,454.56
Liquidation of fixed assets 0.00 0.00
Total 36,385,942.05 36,458,454.56
(1) Status of fixed assets
Unit: RM B
Item M otor vehicles Electric and office equipment Total
I. Original carrying value:
1. Balance at the beginning of this period 6,424,328.85 116,980,511.36 123,404,840.21
2. Increase of this period 683,185.84 10,673,356.07 11,356,541.91
(1) Purchasing 683,185.84 10,647,900.74 11,331,086.58
(2) Construction in progress transferred-in
(3) Increase by business combination
(4) Exchange conversion 25,455.33 25,455.33
3. Decrease of this period 3,918,238.46 8,509,193.94 12,427,432.40
(1) Disposal or discard as useless 1,296,997.73 1,296,997.73
(2) Disposal of subsidiaries 3,918,238.46 7,212,196.21 11,130,434.67
4. Closing balance 3,189,276.23 119,144,673.49 122,333,949.72
II. Accumulated depreciation
1. Balance at the beginning of this period 3,134,095.70 83,812,289.95 86,946,385.65
2. Increase of this period 331,780.58 6,900,230.23 7,232,010.81
(1) Accruing 331,780.58 6,884,900.75 7,216,681.33
(2) Exchange conversion 15,329.48 15,329.48
3. Decrease of this period 1,605,267.63 6,625,121.16 8,230,388.79
(1) Disposal or discard as useless 1,059,850.53 1,059,850.53
(2) Disposal of subsidiaries 1,605,267.63 5,565,270.63 7,170,538.26
4. Closing balance 1,860,608.65 84,087,399.02 85,948,007.67
III. Provision for impairment of assets
1. Balance at the beginning of this period
2. Increase of this period
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(1) Accruing
3. Decrease of this period
(1) Disposal or discard as useless
4. Closing balance
IV Book value
1. Ending book value 1,328,667.58 35,057,274.47 36,385,942.05
2. Book value at the beginning of period 3,290,233.15 33,168,221.41 36,458,454.56
12. Construction in progress
Unit: RM B
Item Ending balance Beginning balance
Construction in progress 751,293,007.77 0.00
Total 751,293,007.77 0.00
(1) Status of construction under progress
Unit: RM B
Ending balance Balance at the beginning of the period
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Office building 751,293,007.77 751,293,007.77
Total 751,293,007.77 751,293,007.77 0.00
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(2) Change of significant construction during the period
Unit: RM B
Proportion of
Amount of Amount of Accumulated
Increased accumulative Wherein: Amount of
Project Beginning transfer-in fixed other Project amount of Capitalization rate of Capital
Budget amount of Ending balance engineering capitalized interest in
name balance assets at current decreases of progress capitalized interest for this period sources
current period investment in current period
period this period interest
budget
Office
building 0.00 751,293,007.77 0.00 0.00 751,293,007.77 0.00 0.00 0.00% Others
Total 0.00 751,293,007.77 0.00 0.00 751,293,007.77 -- -- --
13. Intangible assets
(1) Status of intangible assets
Unit: RM B
Office
Item Cost of publication number Domain name Game copyright Trademark Total
software
I. Original carrying value
1. Balance at the beginning of this period 354,930.00 12,778,182.04 93,439,716.94 865,764.31 12,360,394.64 119,798,987.93
2. Increase of this period 262.99 1,769,927.00 1,770,189.99
(1) Purchasing 1,769,911.60 1,769,911.60
(2) Internal R&D
(3) Increase by business combination
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(4) Exchange conversion 262.99 15.40 278.39
3. Decrease of this period
(1) Disposal
4. Closing balance 354,930.00 12,778,182.04 93,439,716.94 866,027.30 14,130,321.64 121,569,177.92
II. Accumulated amortization
1. Balance at the beginning of this period 354,930.00 3,034,818.47 62,856,266.86 373,698.10 8,035,094.35 74,654,807.78
2. Increase of this period 319,454.58 55,249.98 42,260.64 1,370,337.56 1,787,302.76
(1) Accruing 319,454.58 55,249.98 42,009.12 1,370,322.15 1,787,035.83
(2) Exchange conversion 251.52 15.41 266.93
3. Decrease of this period
(1) Disposal
4. Closing balance 354,930.00 3,354,273.05 62,911,516.84 415,958.74 9,405,431.91 76,442,110.54
III. Provision for impairment of assets
1. Balance at the beginning of this period 30,440,779.99 406,963.12 30,847,743.11
2. Increase of this period
(1) Accruing
3. Decrease of this period
(1) Disposal
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4. Closing balance 30,440,779.99 406,963.12 30,847,743.11
IV Book value
1. Ending book value 0.00 9,423,908.99 87,420.11 450,068.56 4,317,926.61 14,279,324.27
2. Book value at the beginning of period 0.00 9,743,363.57 142,670.09 492,066.21 3,918,337.17 14,296,437.04
The ratio of intangible assets formed through the internal research and development of the Company at the end of the period t o the balance of intangible assets is 16.24%.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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14. Development expenditure
Unit: RM B
Increased amount of current period Decreased amount of current period
Beginning Transferred Ending
Item Internal Defined as
balance to current balance
development Others intangible
profits and
expenses assets
losses
Item I 6,205,796.16 6,205,796.16 0.00
Total 6,205,796.16 6,205,796.16 0.00
Other notes
Other notes
15. Goodwill
(1) Carrying value of goodwill
Unit: RM B
Name of the invested Increase in current period Decrease in current period Ending balance
company and the matter Beginning balance Formed through
which forms goodwill Others Disposal
business combination
Shanghai Sanqi Interactive
1,578,065,048.53 1,578,065,048.53
Entertainment
Chengdu Shengge Times
Network Technology Co., 263,737.88 263,737.88
Ltd.
Shanghai M okun 1,259,793,586.00 1,259,793,585.93 0.00
Total 2,838,122,372.34 1,259,291,236.70 1,578,328,786.41
(2) Goodwill impairment
Unit: RM B
Name of the invested Increase in current period Decrease in current period
company and the Beginning
Ending balance
matter which forms balance
Withdrawing Others Disposal Others
goodwill
Chengdu Shengge
Times Network 263,737.88 263,737.88
Technology Co., Ltd.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Shanghai M okun 1,259,291,236.70 1,259,291,236.70 0.00
Total 1,259,554,974.58 1,259,291,236.70 263,737.88
Information about the asset group or portfolio in which the goodwill is recognized
Explain the process of goodwill impairment test, key parameters (such as the growth rate in forecast period, growth rate in steady
period, profit rate, discount rate, forecast period, etc. for estimation of the present value of future cash flows), and the recognition
method of goodwill impairment loss:
Impact of goodwill impairment test
Other notes
16. Long-term prepaid expenses
Unit: RM B
Beginning Increased amount of Amortization amount of Other
Item Ending balance
balance current period the current period decreases
Cost of copyright agency 70,174,940.95 39,004,517.78 38,190,510.02 -69,639.51 71,058,588.22
Trade mark registration fee 2,943.26 2,943.26 0.00
Cost of building decoration 4,108,662.28 1,048,583.96 28,543.71 3,031,534.61
Total 74,286,546.49 39,004,517.78 39,242,037.24 -41,095.80 74,090,122.83
Other notes
17. Deferred tax assets and deferred tax liabilities
(1) Non-offset deferred income tax assets
Unit: RM B
Ending balance Beginning balance
Item Deductible temporary Deferred income Deductible temporary Deferred income
differences tax assets differences tax assets
Provision for assets impairment 49,161,428.01 7,790,147.85 130,272,445.92 22,476,347.10
Deductible losses 23,377,176.05 3,718,400.30
Accrued performance compensation
7,536,817.40 1,130,522.61
receivables
Total 49,161,428.01 7,790,147.85 161,186,439.37 27,325,270.01
(2) Non-offset deferred income tax liabilities
Unit: RM B
Ending balance Beginning balance
Item
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
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difference liabilities difference liabilities
Changes in fair value of
0.00 0.00 31,572,708.00 4,735,906.20
available-for-sale financial assets
Total 0.00 0.00 31,572,708.00 4,735,906.20
(3) The deferred tax assets or debt reported in the net amount after offset
Unit: RM B
Amount of offsetting Closing balance of the Amount of offsetting between Opening balance of the
between the deferred tax deferred tax assets or the deferred income tax assets deferred tax assets or
Item
assets and liabilities at the liabilities after offsetting and liabilities at the beginning liabilities after offsetting
end of the period between them of the period between them
Deferred income tax
0.00 7,790,147.85 0.00 27,325,270.01
assets
Deferred income tax
0.00 0.00 4,735,906.20
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: RM B
Item Ending balance Beginning balance
Deductible temporary differences 98,551,675.35 80,408,693.08
Deductible losses 659,818,310.43 122,954,217.39
Total 758,369,985.78 203,362,910.47
(5) Deductible losses of unrecognized deferred income tax assets will be expired at the end of following
years
Unit: RM B
Year Amount at the end of the period Initial amount Remarks
2020 882,980.60 2,058,386.09
2021 14,790.08 18,045,171.61
2022 22,278,522.68 85,382,375.75
2023 42,404,201.76 17,468,283.94
After 2023 594,237,815.31
Total 659,818,310.43 122,954,217.39 --
Other notes:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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18. Other non-current assets
Have the new revenue standards been implemented?
□ Yes √ No
Unit: RM B
Item Ending balance Beginning balance
Prepayment for house purchase 58,269,048.52 801,611,138.04
Total 58,269,048.52 801,611,138.04
Other notes:
19. Short-term loans
(1) Classification of short-term loans
Unit: RM B
Item Ending balance Beginning balance
Guaranteed loans 369,000,000.00
Total 369,000,000.00
Description of classification of other short-term borrowings:
20. Notes payable
Unit: RM B
Type Ending balance Beginning balance
Bank acceptance bills 30,000,000.00
Total 30,000,000.00 0.00
The due and unpaid payable note at the end of the period is RM B 0.00.
21. Accounts payable
(1) List of accounts payable
Unit: RM B
Item Ending balance Beginning balance
Payable shared profits of games 647,422,034.40 508,051,919.40
Payable internet promotion and traffic costs 436,126,375.84 560,422,006.00
Other payable costs 17,126,445.95 13,888,442.89
Total 1,100,674,856.19 1,082,362,368.29
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(2) Significant accounts payable with age of more than one year
Unit: RM B
Item Ending balance Reasons for outstanding or non-carryover
Payable supplier I 5,572,750.32 In the process of reconciliation
Payable supplier II 14,998,419.30 M eans of settlement is under negotiation
Total 20,571,169.62 --
Other notes:
22. Account received in advance
Have the new revenue standards been implemented?
□ Yes √ No
(1) List of account received in advance
Unit: RM B
Item Ending balance Beginning balance
Recharge received in advance 180,060,823.75 94,547,117.27
Others 98,823.77 81,625.32
Total 180,159,647.52 94,628,742.59
23. Staff salaries payable
(1) List of staff salaries payable
Unit: RM B
Item Balance at the beginning of the period Increase in current period Decrease in current period Ending balance
I. Short-term remuneration 121,133,549.27 370,773,545.96 372,261,897.81 119,645,197.42
II. Post-employment benefit-defined
674,799.08 17,721,260.80 18,082,248.64 313,811.24
contribution plans
III. Dismiss welfares 170,052.83 4,445,093.56 3,079,146.39 1,536,000.00
IV Other welfare due within one year 0.00 0.00 0.00 0.00
Total 121,978,401.18 392,939,900.32 393,423,292.84 121,495,008.66
(2) List of short-term remuneration
Unit: RM B
Balance at the beginning Increase in current
Item Decrease in current period Closing balance
of the period period
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1. Salaries, bonus, allowances and subsidies 120,493,925.04 326,788,365.29 328,008,823.28 119,273,467.05
2. Staff welfare expenses 0.00 22,857,652.29 22,857,652.29 0.00
3. Social insurance premiums 379,477.06 10,106,054.60 10,306,547.79 178,983.87
Wherein: M edical insurance premiums 332,631.49 8,471,033.80 8,653,618.93 150,046.36
Industrial injuries insurance premium 5,586.28 241,926.16 243,225.40 4,287.04
M aternity insurance premiums 33,864.00 1,028,646.36 1,044,290.45 18,219.91
Critical illness insurance 7,395.29 364,448.27 365,413.00 6,430.56
4. Housing provident fund 249,061.00 9,660,969.30 9,729,454.90 180,575.40
5. Union expenses and employee educational
11,086.17 1,360,504.48 1,359,419.55 12,171.10
expenditure
Total 121,133,549.27 370,773,545.96 372,261,897.81 119,645,197.42
(3) List of defined contribution plans
Unit: RM B
Item Balance at the beginning of the period Increase in current period Decrease in current period Closing balance
1. Basic endowment insurance 654,126.16 16,946,755.18 17,300,788.62 300,092.72
2. Unemployment insurance premiums 20,672.92 774,505.62 781,460.02 13,718.52
Total 674,799.08 17,721,260.80 18,082,248.64 313,811.24
Other notes:
24. Tax payable
Unit: RM B
Item Ending balance Beginning balance
VAT 17,212,333.91 33,574,036.91
Enterprise income tax 67,656,481.38 51,032,839.33
Individual income tax 48,720.38 971,561.88
Urban maintenance and construction tax 905,870.42 1,366,222.30
Education surtax 388,417.51 590,668.51
Local education surcharge 258,945.00 392,703.75
Water conservancy funds 650,442.49 397,874.74
Stamp tax 874,846.00 591,306.68
Outbound income tax 467,769.92 358,410.10
Embankment protection fee 179.23
Total 88,463,827.01 89,275,803.43
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Other notes:
25. Other payables
Unit: RM B
Item Ending balance Beginning balance
Interests payable 52,841.84
Dividends payable 417,980,832.00 0.00
Other payables 134,326,337.79 108,089,757.99
Total 552,307,169.79 108,142,599.83
(1) Interest payable
Unit: RM B
Item Ending balance Beginning balance
Interest payable for short-term loan 52,841.84
Total 52,841.84
Significant interest overdue but unpaid:
Unit: RM B
Borrower Default penalty Overdue reason
Other notes:
(2) Dividend payable
Unit: RM B
Item Ending balance Beginning balance
Dividends on common stock 417,980,832.00 0.00
Total 417,980,832.00 0.00
Other instructions, including important dividends payable unpaid for more than 1 year, should disclose the reasons for the
non-payment:
(3) Other payables
1) Other accounts payable listed by the nature of accounts
Unit: RM B
Item Ending balance Beginning balance
Deposit and guarantee deposit 9,240,000.00 8,360,000.00
Investment funds payable 11,000,000.00 8,500,000.00
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Temporary payment for equity payment 109,936,207.21 86,936,207.21
Others 4,150,130.58 4,293,550.78
Total 134,326,337.79 108,089,757.99
2) Other significant accounts payable with age of more than one year
Unit: RM B
Item Ending balance Reasons for outstanding or non-carryover
Ningbo Xishan Investment Partnership (limited partnership) 41,246,292.00 Transaction not completed yet
Total 41,246,292.00 --
Other notes
26. Non-current liability due within one year
Unit: RM B
Item Ending balance Beginning balance
Long-term loans due within 1 year 30,282,389.93 29,599,165.73
Total 30,282,389.93 29,599,165.73
Other notes:
Non-current liabilities due within one year are the mortgage loans due within one year for house purchase by legal persons that are
used by the subsidiaries of the Company for the purchase of office space.
27. Other current liabilities
Have the new revenue standards been implemented?
□ Yes √ No
Unit: RM B
Item Ending balance Beginning balance
Temporarily estimated output tax 69,171,032.23 89,719,750.76
Payable performance compensation 7,536,817.40 7,536,817.40
Total 76,707,849.63 97,256,568.16
M ovements in short-term bonds payable:
Unit: RM B
Issuance Amortizatio Repayme
Withdrawi
Name of Nominal Issuing Bond Issuing Beginnin in the n of nts in the Ending
ng interest
bonds value date period amount g balance current premium or current balance
at par
period discount period
Other notes:
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28. Long-term loans
(1) Classification of long-term loans
Unit: RM B
Item Ending balance Beginning balance
M ortgage, guaranteed loan 265,883,241.55 281,176,106.33
Total 265,883,241.55 281,176,106.33
Description of classification of other long-term borrowings:
Long-term borrowings are the mortgage loans for house purchase by legal persons that are used by the subsidiaries of the Company
for the purchase of office space. The Company assumes joint and several liabilities for these borrowings.
Other instructions, including interest rate range:
The applicable interest rate is 105% of the benchmark interest rate for 5-year RM B loans from financial institutions.
29. Deferred income
Unit: RM B
Balance at the beginning of Increase in Decrease in current
Item Ending balance Cause
the period current period period
Deferred income Game copyright payment
3,903,715.32 1,639,020.78 2,264,694.54
from royalty income to be amortized
Total 3,903,715.32 1,639,020.78 2,264,694.54 --
Items revolving governmental subsidies:
Unit: RM B
Amounts of Amount of Amount of Amount of
Items of Beginning new subsidies non-operating other income cost offset in Other Ending Related to
liabilities balance in current income in current in current the current movements balance assets/income
period period period. period
Other notes:
30. Share capital
Unit: RM B
Changes (+/-) in this time
Beginning
Stock Dividend Shares converted from Ending balance
balance Others Subtotal
issue stock accumulated reserves
Total number
2,124,870,253.00 -12,618,556.00 -12,618,556.00 2,112,251,697.00
of shares
Other notes:
The total number of compensation shares for performance commitment repurchased and cancelled by the Company during the
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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reporting period was 12,618,556 shares. The shares repurchased were cancelled at Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited (CSDC) on June 26th, 2019.
31. Capital reserves
Unit: RM B
Balance at the beginning Decrease in current
Item Increase in current period Ending balance
of the period period
Capital Premium (share
295,818,167.99 106,500,613.64 189,317,554.35
premium)
Other capital reserves 2,921,799.22 2,921,799.22
Total 298,739,967.21 106,500,613.64 192,239,353.57
Other notes, involving changes in the current period and change reasons:
The capital reserve premium decreased in the current period, because the compensation shares provided by the original shareholders
of Shanghai M ohan due to the failure of performance commitments in 2018 were cancelled in the current period to offset the capital
reserve of RM B 106,500,613.64.
32. Treasury stock
Unit: RM B
Balance at the beginning of Decrease in current
Item Increase in current period Ending balance
the period period
Treasury stock 302,007,311.87 302,007,311.87
Total 302,007,311.87 302,007,311.87
Other notes, involving changes in the current period and change reasons:
During the reporting period, the Company repurchased 22,347,537 shares through a stock repurchase special securities account by
centralized competitive bidding. The total amount paid for repurchase and transaction was RM B 302,007,311.87 in total.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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33. Other comprehensive income
Unit: RM B
Amount incurred in the current period
Accrual Less: The amount calculated in other Less: Other comprehensive Attributable to
Beginning Less: Attributable to
Item before income comprehensive income in earlier income in earlier period minority Ending balance
balance Income parent company
tax in this period and carried over to profit and carried over to retained shareholders
taxes after tax
period loss in current period. income in current period after tax
II. Other comprehensive incomes that
19,539,544.78 -25,288.71 -25,288.71 19,514,256.07
would be classified into profit and loss
Translation difference in the foreign
19,539,544.78 -25,288.71 -25,288.71 19,514,256.07
currency financial statement
Other total comprehensive income 19,539,544.78 -25,288.71 -25,288.71 19,514,256.07
Other notes, involving conversion of the effective component of the cash flow hedging profit and loss to the initially recognized amount of the hedged items:
34. Surplus reserves
Unit: RM B
Item Balance at the beginning of the period Increase in current period Decrease in current period Ending balance
Statutory surplus reserves 170,477,835.88 170,477,835.88
Total 170,477,835.88 170,477,835.88
Surplus reserve notes, involving changes in the current period and change reasons:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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35. Undistributed profits
Unit: RM B
Item Current period Previous period
Adjustment of undistributed profits of previous year 3,332,211,003.19 2,819,597,585.78
Adjustment of undistributed profits by beginning of the period
26,836,801.80
(Add + /subtract -)
Undistributed profits at the beginning of the period after
3,359,047,804.99 2,819,597,585.78
adjustment
Add: Net profit owned by parent company owners in this year 1,033,074,405.38 801,378,948.23
Dividends payable on common stock 417,980,832.00 212,487,025.30
Undistributed profits at the end of the period 3,974,141,378.37 3,408,489,508.71
Details of undistributed profits at the beginning of adjustment period:
1) Due to retroactive adjustment of Enterprise Accounting Standard and its relevant new provisions, the affected undistributed profit
at the beginning of the period is RM B 26,836,801.80.
2) Due to changes in accounting policies, the affected undistributed profit at the beginning of the period is RM B 0.00.
3) Due to correction of significant accounting errors, the affected undistributed profit at the beginning of the period is RM B 0.00.
4) Due to changes of consolidation scope caused by the same control, the affected undistributed profit at the beginning of the period
is RM B 0.00.
5) Due to all the other adjustments, the affected undistributed profit at the beginning of the period is RM B 0.00.
36. Operating income and operating costs
Unit: RM B
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
M ain business 6,070,957,503.06 838,986,561.51 3,302,496,146.77 886,273,600.84
Total 6,070,957,503.06 838,986,561.51 3,302,496,146.77 886,273,600.84
Have the new revenue standards been implemented?
□ Yes √ No
Other notes
37. Taxes and additional charges
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Urban maintenance and construction tax 6,172,602.07 4,948,385.78
Education surtax 2,647,382.39 2,249,705.79
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Housing property tax 709,881.81
Land use tax 1,491,346.02
Vehicle and vessel use tax 5,786.00
Stamp tax 5,887,808.42 4,040,180.13
Local education surcharge 1,763,620.77 1,499,803.86
Water conservancy construction fund 3,906,174.99 899,614.72
Others 14,783.32
Total 20,392,371.96 15,844,704.11
Other notes:
38. Sales expense
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Salary and welfare 67,946,816.49 58,178,715.37
Depreciation cost 366,206.32 1,183,914.65
Office expense 1,177,474.71 841,929.24
Internet traffic fee 3,558,291,208.95 1,065,490,253.23
Traveling expense 616,366.75 1,250,701.25
Transportation and storage fees 11,259,054.71
Entertainment expenses 1,446,225.44 2,796,751.98
Others 2,223,223.18 2,477,174.51
Total 3,632,067,521.84 1,143,478,494.94
Other notes:
39. Management expense
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Salary and welfare 62,419,050.34 73,347,048.30
Office expense 3,809,689.53 9,433,016.34
Traveling and conference fees 3,034,384.13 6,939,636.95
Fees of depreciation and amortization 1,683,992.38 7,703,961.58
Business entertainment expense 4,209,103.29 6,595,354.94
Rentals 7,866,253.84 10,477,606.15
Agency and consulting fees 4,778,608.36 9,806,211.13
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Share payment
Others 252,756.81 3,632,089.05
Total 88,053,838.68 127,934,924.44
Other notes:
40. R&D expense
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Salary and welfare 271,801,617.49 193,673,609.70
Operation and maintenance fees 17,842,148.02 20,486,409.91
Fees of depreciation and amortization 12,268,281.05 6,228,919.76
Design cost 9,427,709.39 21,767,674.58
Traveling and transportation expenses 2,678,081.45 3,295,910.41
Office expense 4,164,613.26 3,558,828.12
Rent and office utilities 3,575,323.68 2,058,966.19
Others 2,941,895.98 6,773,547.40
Total 324,699,670.32 257,843,866.07
Other notes:
41. Financial expenses
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Interest payment 16,306,707.81 21,337,173.26
Service charges and others paid to
590,754.01 234,059.11
financial authorities
Less: Interest incomes 12,445,472.86 9,241,560.12
Exchange gains and losses -118,447.24 1,628,761.68
Total 4,333,541.72 13,958,433.93
Other notes:
42. Other profits
Unit: RM B
Sources of other incomes Amount incurred in the current period Amount incurred in the previous period
VAT immediate levy and refund 18,148,222.30 26,890,901.13
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VAT (for addition or deduction) 7,729,525.95
Other government subsidies 23,416,359.86 15,994,304.90
Total 49,294,108.11 42,885,206.03
43. Investment income
Unit: RM B
Amount incurred in Amount incurred in the
Item
the current period previous period
Long-term equity investment income measured by equity method -6,172,892.49 -4,090,378.50
Investment profits by the disposal of long-term equity investment 9,045,006.87 3,511,999.12
Investment income of trading financial assets during the holding period 1,701,000.00
Investment profit by the disposal of trading financial assets 3,187,375.98
Investment income of available-for-sale financial assets during the holding period 1,194,183.75
Investment profit by the disposal of marketable financial assets 16,461,078.84
Bank yields from financial products 11,172,479.46 6,670,822.43
Total 18,932,969.82 23,747,705.64
Other notes:
44. Profits from change in fair value
Unit: RM B
Sources of profits from change of fair value Amount incurred in the current period Amount incurred in the previous period
Trading financial assets 41,603,452.48
Total 41,603,452.48
Other notes:
45. Credit impairment loss
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Bad debt loss of other receivables -3,143,317.39
Losses on bad debts of account receivables 36,237,705.83
Total 33,094,388.44
Other notes:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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46. Asset impairment losses
Have the new revenue standards been implemented?
□ Yes √ No
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
I. Losses on bad debts -2,355,927.32
II. Inventory devaluation losses 214,247.31
V Long-term equity investment
-14,789,077.01
impairment losses
Total -14,789,077.01 -2,141,680.01
Other notes:
47. Income from disposal of assets
Unit: RM B
Source of income from asset disposal Amount incurred in the current period Amount incurred in the previous period
Gains (losses) from disposal of fixed assets -77,711.53 4,411.96
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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48. Non-operating income
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period Amount recognized into current non-recurring profits and losses
Tort compensation 3,074,941.61 725,408.11 3,074,941.61
Others 8,055.54 351,138.99 8,055.54
Total 3,082,997.15 1,076,547.10
Government subsidy recognized in current losses and gains:
Unit: RM B
Do subsidies affect Whether it is a Amount Amount Related to
Subsidy items Entity Reason Nature and type the profit and loss special subsidy incurred in incurred in the assets/inco
of the year? or not? this period previous period me
Subsidies received from the government to encourage
Tax bureaus in Shanghai, Related to
VAT immediate levy and refund Subsidies and support specific industries and segments No No 18,148,222.30 26,890,901.13
Guangzhou, Huai’an, etc. income
(according to national policies and regulations)
Tax bureaus in Guangzhou, Subsidies received from the government for the
Return of handling charges of Related to
Huai’an, Shanghai, Nanling County Subsidies protection of certain utility services or socially No No 53,440.62 583,643.95
individual income tax income
(Anhui), etc. necessary product supply or price control functions
Social insurance fund management Subsidies received from the government for the
Related to
Subsidy for post stability centers in Guangzhou, Huai’an, Subsidies protection of certain utility services or socially No No 11,517.43 81,019.95
income
Wuhu, Shenzhen, etc. necessary product supply or price control functions
Guangzhou M unicipal Human Subsidies received from the government for the
Entrepreneurship-driven Related to
Resources and Social Security Subsidies protection of certain utility services or socially No No 4,000.00
employment subsidies income
Bureau necessary product supply or price control functions
Economic Development Bureau of Subsidies received for compliance with local support Related to
Rewards for quality development Reward No No 15,000.00
Huai’an Economic and policies for investment promotion by local income
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Technological Development Zone governments
Huai’an Software Park Subsidies received for compliance with local support
Subsidies for Huai’an Software Related to
M anagement Development Co., Subsidies policies for investment promotion by local No No 991,394.84 3,282,551.15
Park income
Ltd. governments
Huai’anHongze District Internet
Industry Base M anagement Co., Subsidies received for compliance with local support
Related to
Government support tax rebates Ltd., and Huai’anSanhe Internet Subsidies policies for investment promotion by local No No 4,530,331.59 596,562.00
income
Game Industry Park Construction governments
M anagement Co., Ltd.
Huai’an Economic and
Subsidies from Huai’an Overseas Subsidies received for compliance with local support
Technological Development Zone Related to
Students Pioneer Park Subsidies policies for investment promotion by local No No 40,633.00 2,551,934.70
Overseas Students Pioneer Park income
M anagement Committee governments
M anagement Office
M anagement Committee of Anhui Subsidies received for compliance with local support
Related to
Industrial subsidies Xinwu Economic & Technological Subsidies policies for investment promotion by local No No 414,000.00
income
Development Zone governments
Subsidies received for compliance with local support
Wuhu Jiujiang District Finance Related to
Industrial subsidies Subsidies policies for investment promotion by local No No 15,100,444.24
Bureau income
governments
Provincial Financial Research
Department of Science and
Funds for Research and Subsidies for research and development, technology Related to
Technology of Guangdong Subsidies No No 1,080,500.00
Development of Enterprises in renewal and renovation income
Province
Guangdong Province
Subsidies to Guangzhou Guangzhou Science, Technology Subsidies for research and development, technology Related to
Subsidies No No 575,700.00
enterprises’ R&D investment and Innovation Commission renewal and renovation income
Special fund for construction of Guangzhou M unicipal Science and Subsidies for research and development, technology Related to
Subsidies No No 400,000.00
Guangzhou enterprise R&D Technology Bureau renewal and renovation income
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institute
Special subsidy for construction Guangzhou Science, Technology Subsidies for research and development, technology Related to
Subsidies No No 600,000.00
of enterprise R&D institute and Innovation Commission renewal and renovation income
Guangzhou enterprise R&D Guangzhou Science, Technology Subsidies for research and development, technology Related to
Subsidies No No 278,200.00
subsidy and Innovation Commission renewal and renovation income
Incentive fund for cultivation of
Subsidies for research and development, technology Related to
provincial new high-tech Jiangsu Department of Finance Reward No No 55,555.00
renewal and renovation income
enterprises
Subsidies received for compliance with local support
Special fund of commercial Guangzhou M unicipal Commerce Related to
Reward policies for investment promotion by local No No 397,500.00
development Bureau income
governments
Subsidies received for compliance with local support
Rebates of VAT levied by South Related to
Sam Sung Tax Office Subsidies policies for investment promotion by local No No 4,198.14 1,251.47
Korea income
governments
Subsidies received from the government to encourage
Tax bureaus in Shanghai, Related to
VAT (for addition or deduction) Subsidies and support specific industries and segments No No 7,729,525.95
Guangzhou, Huai’an, etc. income
(according to national policies and regulations)
Subsidies received for compliance with local support
Jishan Town Government of Related to
Return of land use tax Subsidies policies for investment promotion by local No No 1,857,265.43
Nanling County, Anhui Province income
governments
Supporting subsidy from the Subsidies received for compliance with local support
Finance Bureau of Jiading District, Related to
Finance Bureau of Jiading Subsidies policies for investment promotion by local No No 3,632.80
Shanghai income
District, Shanghai governments
Subsidies received for compliance with local support
Related to
Fees for withholding taxes Huai’an M unicipal Office of SAT Reward policies for investment promotion by local No No 71,081.94
income
governments
Business stabilization and People’s Government of Tang Subsidies Subsidies received for compliance with local support No No 161,000.00 Related to
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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development policies during the Town, Pudong New Area, Shanghai policies for investment promotion by local income
13th Five-Year Plan Period in governments
Pudong New Area
Provincial Financial Research
Funds for Research and Finance Bureau of Tianhe District, Subsidies for research and development, technology Related to
Subsidies No No 697,300.00
Development of Enterprises in Guangzhou City renewal and renovation income
Guangdong Province in 2017
Treasury Payment Center of
Provincial financial reward for Subsidies for research and development, technology Related to
Huai’an Economic and Reward No No 2,000,000.00
enterprise R&D expenses in 2017 renewal and renovation income
Technological Development Zone
Special fund for innovation in Finance Bureau of Tianhe District, Subsidies for research and development, technology Related to
Reward No No 200,000.00
2017 Guangzhou City renewal and renovation income
Subsidies received for compliance with local support
Treasury Payment Center of Wuhu Related to
Withheld VAT, income tax refund Subsidies policies for investment promotion by local No No 551,046.04
Jiujiang District Finance Bureau income
governments
Nanling County Commission of
Reward for technological Subsidies for research and development, technology Related to
Economy and Information Subsidies No No 286,000.00
innovation and invention patent renewal and renovation income
Technology
Subsidy of Finance and Taxation
Finance and Taxation Service Subsidies received for compliance with local support
Service Center in Wuhu Related to
Center in Wuhu M achinery Subsidies policies for investment promotion by local No No 1,412,900.00
M achinery Industry Development income
Industry Development Zone governments
Zone
Project subsidies of Automotive Subsidies for research and development, technology Related to
Anhui Department of Finance Subsidies No No 65,000.00
Fuel System R&D Center renewal and renovation assets
Wuhu M unicipal Commission of
Subsidy for the purchase of single Subsidies for research and development, technology Related to
Economy and Information Subsidies No No 13,725.46
equipment by SM Es renewal and renovation assets
Technology
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Provincial “6+1” subsidies for Nanling County Commission of
Subsidies for research and development, technology Related to
building independent innovation Economy and Information Subsidies No No 49,400.00
renewal and renovation assets
capacity Technology
Special funds for development of
Nanling County Commission of
provincial enterprises of Nanling Subsidies for research and development, technology Related to
Economy and Information Subsidies No No 25,000.00
Country Commission of Economy renewal and renovation assets
Technology
and Information Technology
Provincial innovation enterprise Wuhu M unicipal Science and Subsidies for research and development, technology Related to
Subsidies No No 13,875.00
R&D equipment subsidy Technology Bureau renewal and renovation assets
Nanling County Commission of
2015 provincial special fund to Subsidies for research and development, technology Related to
Economy and Information Subsidies No No 13,875.00
build an innovative province renewal and renovation assets
Technology
Nanling County Commission of
Subsidies for R&D and purchase Subsidies for research and development, technology Related to
Economy and Information Subsidies No No 39,200.00
of instruments and equipment renewal and renovation assets
Technology
2016 provincial special fund to Wuhu M unicipal Science and Subsidies for research and development, technology Related to
Subsidies No No 39,200.00
build an innovative province Technology Bureau renewal and renovation assets
2017 Construction fund supports
for building manufacturing strong
Nanling County Commission of
provinces, and equipment Subsidies for research and development, technology Related to
Economy and Information Subsidies No No 171,000.00
subsidies for technological renewal and renovation assets
Technology
transformation projects to
improve industrial foundation
Reward and subsidy for industrial
Nanling County Commission of
technology reform of Country Subsidies for research and development, technology Related to
Economy and Information Subsidies No No 84,135.00
Commission of Economy and renewal and renovation assets
Technology
Information Technology
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2017 provincial special fund to
build an innovative province of Nanling County Commission of
Subsidies for research and development, technology Related to
Nanling County Commission of Economy and Information Subsidies No No 6,650.01
renewal and renovation assets
Economy and Information Technology
Technology (technology division)
Other notes:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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49. Non-operating expenses
Unit: RM B
Amount incurred in the current Amount incurred in the Amount recognized into current
Item
period previous period non-recurring profits and losses
External donation 2,520,249.00 2,154,575.54 2,520,249.00
Others 154,522.67 1,333,286.58 154,522.67
Total 2,674,771.67 3,487,862.12
Other notes:
50. Income taxes
(1) Income tax sheet
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Income taxes of current period 118,354,346.40 36,457,725.45
Deferred income tax 13,280,396.04 -19,843.10
Total 131,634,742.44 36,437,882.35
(2) Accounting profit and income tax expenses adjustment process
Unit: RM B
Amount incurred in the
Item
current period
Total profit 1,290,890,352.82
Income tax expenses calculated at legal/applicable tax rate 322,722,588.21
Impact of various tax rates applicable to subsidiaries -222,136,356.75
Adjustment of impact on the income tax in the previous period -7,761.11
Impact of non-taxable income -255,150.00
Impact of deductible losses of unrecognized deferred income tax assets in the previous period -4,953,408.15
Impact of deductible temporary differences or deductible loss of unrecognized deferred income tax
36,264,830.24
assets of this period
Income taxes 131,634,742.44
Other notes
51. Other comprehensive income
For details, please refer to Note 33 - Other comprehensive income.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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52. Items of cash flow statements
(1) Cash received from other operating activities
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Interest income received 9,069,877.61 4,310,656.28
Government subsidies received 23,820,201.73 15,583,868.49
Non-operating income received 3,076,941.61 806,655.75
Current account received 17,336,183.07 3,258,966.99
Total 53,303,204.02 23,960,147.51
Description of other received cash relevant to operating activities:
(2) Cash paid relating to other operating activities
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Out-of-pocket expenses 4,143,483,785.04 1,194,332,855.95
Service charge 571,965.99 263,721.64
Non-operating expense 2,674,749.00 2,899,331.81
Current account paid 5,301,033.03 12,880,638.40
Total 4,152,031,533.06 1,210,376,547.80
Description of other cash paid relating to operating activities:
(3) Other cash received relating to investment activities
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Financial products 2,226,000,000.00 1,126,557,800.00
M okun performance compensation
261,800,000.00 0.00
received
Others 520,540.52
Total 2,488,320,540.52 1,126,557,800.00
Description of other cash received relating to investing activities:
(4) Other cash payments relating to investing activities
Unit: RM B
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Item Amount incurred in the current period Amount incurred in the previous period
Financial products 2,430,000,000.00 1,126,557,800.00
Total 2,430,000,000.00 1,126,557,800.00
Description of other cash payments relating to investing activities:
(5) Other cash payments relating to financing activities
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Repurchase of treasury stocks 302,007,312.87 317,235.07
Acquisition of minority shareholders’
0.00 1,120,000,000.00
equity of subsidiaries
Total 302,007,312.87 1,120,317,235.07
Description of cash payments relating to financing activities:
53. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
Unit: RM B
Supplementary data Amount of current period Amount of previous period
1. Net profits transferred to cash flow of operation
-- --
activities:
Net profit 1,159,255,610.38 882,808,568.69
Add: Provision for assets impairment -18,305,311.43 2,141,680.01
Depreciations of fixed assets, oil and gas assets, and
7,216,681.33 25,040,716.87
productive biological assets
Amortization of intangible assets 1,787,302.76 4,418,266.42
Amortization of long-term deferred expenses 39,242,037.24 29,337,234.51
Losses on disposal of fixed assets, intangible assets
77,711.53 559,118.35
and other long-term assets (“-” indicates the profit)
Financial expense (“-” indicates the profit) 12,906,797.81 15,837,173.26
Losses on investments (“-” indicates the profit) -60,536,422.30 -23,747,705.64
Decrease of deferred tax assets (“-” indicates
18,060,904.24 -19,843.10
increase)
Increase of deferred tax liabilities (“-” indicates
-4,735,906.20 0.00
decrease)
Decrease of inventories (“-” indicates increase) 30,356,816.91
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Decrease of operational receivable items (“-”
-656,621,611.14 -61,504,845.64
indicates increase)
Increase of operational payable items (“-” indicates
118,069,996.97 80,267,426.81
decrease)
Others -62,854.82 -8,258,589.49
Net cash flows from operating activities 616,354,936.37 977,236,017.96
2. M ajor investments and financing activities not
-- --
related to cash expenditure and income:
3. Changes of cash and cash equivalent: -- --
Ending cash balance 1,784,128,992.84 1,538,659,591.57
Less: Cash balance at the beginning of the period 1,515,740,344.79 1,580,910,931.98
Net increase of cash and cash equivalents 268,388,648.05 -42,251,340.41
(2) Net cash received for the disposal of subsidiaries in the current period
Unit: RM B
Amount
Cash or cash equivalent received in current period for the disposal of subsidiaries in the current period 110,000,000.00
Wherein: --
Shanghai M okun 110,000,000.00
Less: Cash and cash equivalent held by subsidiary at the date of losing control 81,260,236.50
Wherein: --
Shanghai M okun 81,260,236.50
Add: Cash or cash equivalent received in the current year for the disposal of subsidiaries in the previous
404,709,910.00
periods
Wherein: --
Wuhu Shunrong Auto Parts Co., Ltd. 404,709,910.00
Net cash received for the disposal of subsidiaries 433,449,673.50
Other notes:
(3) Constitution of cash and cash equivalent
Unit: RM B
Item Ending balance Beginning balance
I. Cash 1,784,128,992.84 1,515,740,344.79
Wherein: Cash on hand 29,585.32
Bank deposit available for payment at any time 1,721,249,969.75 1,509,544,157.41
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Other monetary fund available for payment at any time 32,879,023.09 6,166,602.06
Note margin due within three months 30,000,000.00
III. Balance of cash and cash equivalents at the end of period 1,784,128,992.84 1,515,740,344.79
Wherein: Restricted cash and cash equivalents used by parent
30,000,000.00
company and subordinated company of Group
Other notes:
The ending balance of cash and cash equivalents was RM B 1,784,128,992.84. The ending balance of monetary fund was RM B
1,788,431,889.15. The difference of RM B 4,302,896.31 was the guarantee and frozen fund not meeting the cash and cash equivalent
standard.
54. Assets with limited ownership or right of use
Unit: RM B
Item Carrying value at the end of the period Reason for restriction
M onetary fund 34,302,896.31 M argin account
Borrowing of the Company’s subsidiaries with the office
Construction in progress 751,293,007.77
building as the mortgage
Total 785,595,904.08 --
Other notes:
55. Foreign currency monetary items
(1) Monetary items in foreign currency
Unit: RM B
Balance of foreign currency at Balance in RM B at the end of
Item Exchange rate
the end of period period
M onetary fund -- -- 473,347,088.90
Including: U SD 67,476,767.42 6.8716 463,673,354.99
EUR 92,005.30 7.8007 717,712.01
HKD 5,306,590.33 0.8803 4,671,349.95
KRW 390,933,993.00 0.0062 2,423,790.76
JPY 2,164,694.00 0.0632 136,702.64
THB 1,846,869.07 0.2240 413,691.47
NT 5,903,095.00 0.2220 1,310,487.09
Accounts receivable -- -- 159,495,588.48
Wherein: USD 8,622,815.50 6.8716 59,252,538.96
EUR 4,719.43 7.8007 36,817.63
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HKD 29,806,669.61 0.8803 26,237,378.58
AUD 761.53 4.8149 3,666.69
Lille, Brazil 219.93 1.7846 392.49
PLN 30.40 1.8382 55.88
RUB 2,930.55 0.1093 320.31
PHP 28,657,877.73 0.1338 3,834,424.04
KRW 366,059,899.00 0.0062 2,264,331.65
M YR 2,322,635.37 1.6636 3,863,936.20
NOK 0.77 0.8052 0.62
JPY 807,005,106.59 0.0632 50,995,326.83
SEK 18.20 0.7385 13.44
THB 17,291,267.20 0.2240 3,869,785.59
Turkey 201,000.58 1.1957 240,336.39
SGD 95,702.76 5.0760 485,787.21
NT 1,184,087.50 0.2220 262,852.28
INR 7,942.50 0.0996 791.07
IDR 10,529,516,567.00 0.0005 5,159,601.84
GBP 414.65 8.7200 3,615.75
VND 10,079,780,506.25 0.0003 2,983,615.03
Long-term loans -- --
Wherein: USD
EUR
HKD
Other receivables -- 4,222,670.21
Wherein: USD 612,229.71 6.8716 4,206,997.70
KRW 810,004.84 0.0062 5,022.03
NT 47,975.14 0.2220 10,650.48
Accounts payable -- 213,643,110.09
Wherein: USD 27,726,222.00 6.8716 190,523,507.00
EUR 7,984.30 7.8007 62,287.92
THB 28,007.57 0.2240 6,273.70
NT 97,617,070.82 0.2220 21,670,743.61
VND 4,676,607,625.40 0.0003 1,380,297.86
Other payables -- 618,777.98
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Wherein: USD 90,000.00 6.8716 618,444.00
NT 1,500.00 0.2220 333.98
Other notes:
(2) Notes to operational entities beyond Mainland China, including disclosures of principal places of
business, functional currencies and the basis of choosing functional currencies, as well as the reasons for the
change in functional currencies (if any).
□Applicable √Not Applicable
56. Government subsidies
(1) Basic information on government subsidies
Unit: RM B
Type Amount Presented item Amount included in current profits and losses
Government Subsidy Related to
49,294,108.11 Other profits 49,294,108.11
Income
III. Consolidation scope change
1. Business combinations not under the same control
(1) Business combination not under common control in current period
Unit: RM B
Revenue of Net profit of
Stock Confirmation
Name of Time point of Equity Purchasing Acquiree from Acquiree from
Share ratio controlling basis on
Acquiree stock control control cost date purchase date to purchase date to
mode purchase day
the end of term the end of term
Chengdu January 7th, January 7th, Actual handover
550,000.00 55.00% Purchase 0.00 -850,182.00
Shouyin 2019 2019 date
Other notes:
(2) Merger cost and goodwill
Unit: RM B
Combination cost
- Cash 550,000.00
Total merger cost 550,000.00
Less: Proportion of fair value of identifiable net assets acquired 550,000.00
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Amount of goodwill/ merger cost which is less than the definable net assets fair proportion 0.00
Recognition method for fair value on the combined costs and description of contingent consideration and its change:
The main reasons for the large goodwill:
Other notes:
(3) Identifiable assets and liabilities of acquiree on the acquisition date
Unit: RM B
Fair value on purchase day Book value on purchase day
M onetary fund 520,540.52 520,540.52
Receivables 88,947.62 88,947.62
Accounts payable 59,488.14 59,488.14
Net asset 550,000.00 550,000.00
Net asset acquired 550,000.00 550,000.00
Recognition method for identifiable assets and fair value:
Determined by book value.
Contingent liabilities of the acquiree assumed in business combination:
None
Other notes:
None
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(4) Shares previously held before the acquisition day will be recalculated in terms of the fair value for profits or losses produced
Whether there are transactions that realize business combination step by step through multiple transactions and gain control during the reporting period
□ Yes √ No
2. Disposal of subsidiaries
Whether there are cases where the control over investment in subsidiary is lost in single disposal
□ Yes √ No
Unit: RM B
Amount of other
Determina Difference of enjoyed net Profits or losses Recognition
comprehensive income,
Time tion basis asset share of the subsidiary Proportion of Carrying value of Fair value of attributing to methods and main
Disposal Ratio of Disposal related to equity
Name of point of of time between consolidated remaining equity remaining equity remaining equity remaining assumption for fair
price of disposal method of investment of original
subsidiary losing point of financial statements on the date of on the date of on the date of equity value of remaining
equity equity (%) equity subsidiary, carried
control losing corresponding to disposal losing control losing control losing control re-measured by equity on the date
forward to the profit and
control price and investment fair values of losing control
loss on investments
The equity
Februar transfer
Shanghai 110,000,00
100.00% Sale y 28th, procedure 9,045,006.87 0.00% 0.00 0.00 0.00 Not applicable 0.00
M okun 0.00
2019 was
completed
Other notes:
Whether there are cases where investment in subsidiary is disposed step by step through multiple transactions and the control is lost in the current period
□ Yes √ No
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3. Merger scope change for other reasons
Notes to changes in scope of combination due to other reasons (e.g., establishment of new subsidiaries, liquidation of subsidiaries, etc.) and their related circumstances:
Company name Cause of changes Establishment/Change date
Silk Road Culture Company Newly-established January 2019
Anhui Jishuo Newly-established January 2019
Shanghai Jiqu Newly-established January 2019
Guangzhou Lehu Newly-established January 2019
Feiying Network Newly-established February 2019
ChuangshiPoxiao Newly-established M arch 2019
Japanese Lychee Newly-established M arch 2019
37 FUN WORLD PTE.LTD Newly-established April 2019
Guangzhou Jishang Newly-established June 2019
IV. Rights and interests in othe r parties
1. Rights and interests in subsidiary
(1) Organization of enterprise group
Principal place of Shareholding ratio
Name of subsidiary Registered address Business nature Acquisition method
business Directly Indirectly
Level 1 subsidiary
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Guangzhou Sanqi Culture &
Guangzhou Guangzhou Software and Information Technology Service 100.00% Establishment
Entertainment
Tibet Xintai Tibet Tibet Investment 100.00% Establishment
Level 2 subsidiary
Shanghai Sanqi Interactive Business combination not under
Shanghai Shanghai Software and Information Technology Service 100.00%
Entertainment common control
Khorgas Sanqi Xinjiang Xinjiang Investment 100.00% Establishment
Level 3 subsidiary
Business combination not under
Shanghai Yingtong Shanghai Shanghai Software and Information Technology Service 100.00%
common control
Business combination not under
Anhui Vogue Entertainment Wuhu Wuhu Software and Information Technology Service 100.00%
common control
British Virgin Business combination not under
Vogue Entertainment International British Virgin Islands Software and Information Technology Service 100.00%
Islands common control
Business combination not under
Guangzhou Sanqi Guangzhou Guangzhou Software and Information Technology Service 80.00%
common control
Business combination not under
Jiangsu Aurora Huai’an Huai’an Software and Information Technology Service 20.00% 80.00%
common control
Business combination not under
Guangzhou Xingzhong Guangzhou Guangzhou Software and Information Technology Service 100.00%
common control
Business combination not under
Shanghai Guanhang Shanghai Shanghai Software and Information Technology Service 100.00%
common control
Business combination not under
Anhui Jiashang Wuhu Wuhu Software and Information Technology Service 100.00%
common control
Easy Gaming, Inc. United States United States Software and Information Technology Service 100.00% Business combination not under
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common control
Level 4 subsidiary
Business combination not under
Shanghai Zhiren Shanghai Shanghai Software and Information Technology Service 100.00%
common control
Zhuhai Shangjie Zhuhai Zhuhai Software and Information Technology Service 100.00% Establishment
Chuangshi Poxiao Hong Kong Hong Kong Software and Information Technology Service 100.00% Establishment
British Virgin Business combination not under
G-M EI Network British Virgin Islands Software and Information Technology Service 100.00%
Islands common control
British Virgin Business combination not under
Top Increase British Virgin Islands Software and Information Technology Service 100.00%
Islands common control
British Virgin
Feiying Network British Virgin Islands Software and Information Technology Service 100.00% Establishment
Islands
Business combination not under
Shanghai M obile Game Shanghai Shanghai Software and Information Technology Service 80.00%
common control
Chengdu Shengge Times Network Business combination not under
Chengdu Chengdu Software and Information Technology Service 80.00%
Technology Co., Ltd. common control
Business combination not under
Beijing Shangheng Beijing Beijing Software and Information Technology Service 80.00%
common control
Business combination not under
Jiangsu Jiaqu Huai’an Huai’an Software and Information Technology Service 80.00%
common control
Guangzhou Huoshanhu Guangzhou Guangzhou Software and Information Technology Service 80.00% Establishment
Anhui Sanqi Wuhu Wuhu Software and Information Technology Service 80.00% Establishment
Anhui Wanhu Wuhu Wuhu Software and Information Technology Service 80.00% Establishment
Zhuhai M iaohu Zhuhai Zhuhai Software and Information Technology Service 80.00% Establishment
Guangzhou Sanqi Interactive Guangzhou Guangzhou Software and Information Technology Service 100.00% Establishment
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Entertainment
Anhui Aurora Wuhu Wuhu Software and Information Technology Service 100.00% Establishment
Guangzhou Jisheng Guangzhou Guangzhou Software and Information Technology Service 100.00% Establishment
Anhui Jishuo Wuhu Wuhu Software and Information Technology Service 100.00% Establishment
Shanghai Jiqu Shanghai Shanghai Software and Information Technology Service 100.00% Establishment
Guangzhou Jishang Guangzhou Guangzhou Software and Information Technology Service 100.00% Establishment
Anhui Xuhong Wuhu Wuhu Software and Information Technology Service 100.00% Establishment
Business combination not under
Anhui Guanyu Wuhu Wuhu Advertising 100.00%
common control
Guangzhou Lehu Guangzhou Guangzhou Software and Information Technology Service 100.00% Establishment
Anhui Zhusheng Wuhu Wuhu Software and Information Technology Service 100.00% Establishment
Level 5 subsidiary
Business combination not under
Tibet Taifu Tibet Tibet Investment 100.00%
common control
Khorgas Xinghui Xinjiang Xinjiang Software and Information Technology Service 100.00% Establishment
Business combination not under
Jiangsu Zhiming Huai’an Huai’an Software and Information Technology Service 49.00% 51.00%
common control
37 FUN WORLD PTE.LTD Singapore Singapore Software and Information Technology Service 100.00% Establishment
Business combination not under
37 Games Entertainment Co., Ltd. Hong Kong Hong Kong Software and Information Technology Service 100.00%
common control
British Virgin Business combination not under
Wisdom Game International British Virgin Islands Software and Information Technology Service 100.00%
Islands common control
Wisdom Entertainment Business combination not under
Hong Kong Hong Kong Software and Information Technology Service 100.00%
International common control
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Business combination not under
37 Games Company South Korea South Korea Software and Information Technology Service 100.00%
common control
Khorgos Xinrui Xinjiang Xinjiang Software and Information Technology Service 80.00% Establishment
Level 6 subsidiary
Tibet Yaotong Tibet Tibet Software and Information Technology Service 100.00% Establishment
Tibet Shengge Tibet Tibet Software and Information Technology Service 100.00% Establishment
Business combination not under
Huai’an Sanqi Huai’an Huai’an Investment 100.00%
common control
Business combination not under
Chengdu Shouyin Chengdu Chengdu Software and Information Technology Service 55.00%
common control
Khorgas Qianyu Xinjiang Xinjiang Software and Information Technology Service 100.00% Establishment
37Games.Japan Co,.Ltd. Japan Japan Software and Information Technology Service 100.00% Establishment
Japanese Lychee Japan Japan Software and Information Technology Service 100.00% Establishment
Silk Road Culture Company Xinjiang Xinjiang Software and Information Technology Service 80.00% Establishment
The shareholding ratio in the subsidiary is different from the percentage of the voting rights:
Basis for a company to control the invested organization with half or less than half of voting rights and a company not to control the invested organization with more than half of voting rights:
For important structured entities that are included in the scope of consolidation, the basis for control:
Basis for determining whether the company is an agent or a client:
Other notes:
(2) Key no-wholly owned subsidiaries
Unit: RM B
Shareholding ratio of Profit and loss belonging to minority Dividend declared to be distributed to minority
Name of subsidiary Balance of minority equity at the end of period
minority shareholders shareholder of the current period shareholder of the current period
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Guangzhou Sanqi 20.00% 127,733,478.39 122,000,000.00 153,102,071.21
Notes to shareholding ratio of minority shareholders of subsidiaries which is different from the percentage of the voting rights:
Other notes:
(3) Main financial information of key non-wholly owned subsidiaries
Unit: RM B
Name of Ending balance Beginning balance
subsidiar Non-current Non-current Non-current Non-current
Current assets Total assets Current liabilities Total liabilities Current assets Total assets Current liabilities Total liabilities
y assets liabilities assets liabilities
Guangzh
4,694,117,564.15 145,195,284.03 4,839,312,848.18 4,044,363,998.60 29,438,493.55 4,073,802,492.15 2,156,907,783.27 127,801,334.17 2,284,709,117.44 1,516,725,501.90 31,140,651.44 1,547,866,153.34
ou Sanqi
Unit: RM B
Amount incurred in the current period Amount incurred in the previous period
Name of subsidiary Total consolidated Cash flows from operating Total consolidated Cash flows from
Operating incomes Net profit Operating income Net profit
income activities income operating activities
Guangzhou Sanqi 4,271,590,566.86 638,667,391.93 638,667,391.93 147,492,216.92 1,450,102,463.44 321,256,372.49 321,256,372.49 499,741,276.33
Other notes:
2. Equity in jointly operated arrangements or joint ventures
(1) Key joint ventures or associates
Principal place of Business Shareholding ratio Accounting treatment methods of joint
Names of joint ventures or associated enterprises Registered address
business nature Directly Indirectly ventures or associated enterprises
Yangzhou FuhaiSanqi Internet Cultural Investment Center (Limited Yangzhou Yangzhou Investment 25.46% Equity method
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Partnership)
M ango (Xiamen) Creative Incubation Equity Investment Fund
Xiamen Xiamen Investment 31.75% Equity method
Partnership (Limited Partnership)
Shanghai FenghuaQiushi Culture M edia Co., Ltd. Shanghai Shanghai Investment 20.00% Equity method
New Cues (Beijing) Television Investment Co., Ltd. Beijing Beijing Investment 20.00% Equity method
The shareholding ratio in the joint ventures or associates is different from the percentage of the voting rights:
Not applicable
Evidence of voting right below 20% but significant, or voting right over 20% but not significant:
Not applicable
(2) Main financial information on key associated enterprises
Unit: RM B
Ending balance/Amount incurred in the current period Opening balance/Amount incurred in previous period
Yangzhou M ango (Xiamen) New Cues Yangzhou M ango (Xiamen)
Shanghai Shanghai
FuhaiSanqi Internet Creative Incubation (Beijing) FuhaiSanqi Internet Creative Incubation New Cues (Beijing)
FenghuaQiushi FenghuaQiushi
Cultural Investment Equity Investment Fund Television Cultural Investment Equity Investment Television
Culture M edia Co., Culture M edia Co.,
Center (Limited Partnership (Limited Investment Co., Center (Limited Fund Partnership Investment Co., Ltd.
Ltd. Ltd.
Partnership) Partnership) Ltd. Partnership) (Limited Partnership)
Current assets 62,224,642.07 41,258,730.31 93,168,199.04 117,833,251.34 59,887,123.89 96,865,384.60 88,732,285.69 174,005,448.14
Non-current assets 169,000,000.00 26,500,000.00 22,310,091.84 6,626,167.36 139,000,000.00 26,500,000.00 41,926,172.74 17,240,844.95
Total assets 231,224,642.07 67,758,730.31 115,478,290.88 124,459,418.70 198,887,123.89 123,365,384.60 130,658,458.43 191,246,293.09
Current liabilities 4,305,315.07 10,675,675.78 87,376,207.86 35,247,574.35 142,418,605.58
Non-current liabilities 37,312.00
Total liabilities 4,305,315.07 10,675,675.78 87,413,519.86 35,247,574.35 142,418,605.58
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
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Total shareholders’ equity attributed
226,919,327.00 67,758,730.31 104,802,615.10 37,045,898.84 198,887,123.89 123,365,384.60 95,410,884.08 48,827,687.51
to parent company
Share of net assets calculated at
46,149,592.48 9,876,117.30 21,007,587.93 8,725,952.16 48,136,104.35 39,163,509.62 19,082,176.82 9,765,537.50
shareholding ratio
- Goodwill 113,596,170.58 91,519,923.84 113,596,170.58 91,519,923.84
Book value of equity investment on
46,149,592.48 9,876,117.30 134,603,758.51 100,245,876.00 48,136,104.35 39,163,509.62 132,678,347.40 101,285,461.34
associates
Operating income 23,072,637.19 1,392,282.21
Net profit -7,802,481.82 87,648.49 9,627,055.60 -5,197,926.67 -5,227.13 1,481,132.99
Total consolidated income -7,802,481.82 87,648.49 9,627,055.60 -5,197,926.67 -5,227.13 1,481,132.99
Other notes
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(3) Financial information summary on less important joint ventures and associated enterprises
Unit: RM B
Ending balance/Amount incurred Opening balance/Amount
in the current period incurred in previous period
Joint ventures: -- --
Totals of the following items calculated as per respective
-- --
shareholding proportion
Affiliated enterprises: -- --
Total investment book value 223,349,479.48 229,338,591.28
Totals of the following items calculated as per respective
-- --
shareholding proportion
- Net profit -5,100,034.79 -771,667.10
- Total consolidated income -5,100,034.79 -771,667.10
Other notes
(4) Excess deficit in joint ventures or associated enterprises
Unit: RM B
Accumulated unconfirmed Unconfirmed loss of the current
Names of joint ventures or Accumulated unconfirmed loss
losses recognized in the period (or shared net profits of
associated enterprises at the end of the period
previous period the current period)
Longzhang Animation (Shanghai)
-7,906,627.53 5,834,060.02 -2,072,567.51
Co., Ltd.
Other notes
V. Risk associated with financial instruments
The target of risk management by the Group is to balance risk and profit, and minimize the negative influence of risk on the
Company's operation performance, and maximize the profit of shareholder and other equity investors. Base on this risk managem ent
target, the fundamental strategy of the Company's risk management is to identify and analyze various risks in the Company, establish
appropriate risk tolerance baseline, manage risks, and to supervise all risks promptly and reliably so as to control ris k in limited
scope.
The various risks related to financial instruments Company faces in its daily activities mainly include credit risk, liquidit y risk
and market risk. The policy that has been examined and authorized by the management to manage the risks is summarized as follows.
(I) Risks of credit
Credit risk refers to the possibility of financial loss borne by one party caused by the failure to performance obligation by another
party of the financial instrument.
The Company's credit risk is mainly derived from bank deposits and receivables. To control the above-mentioned relevant risks, the
Company adopts the following measures.
1. Bank deposit
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The Company deposits bank deposits in financial institutions with higher credit ratings, so its credit ris k is lower.
2. Receivables
The Company regularly conducts credit evaluations for customers who use credit -based transactions. Based on the results of the
credit evaluation, the Company chooses to conduct transactions with recognized customers of good credit, and monitors the balance
of its receivables to avoid significant risks of bad debts.
As the Company's risk points of accounts receivable are distributed among multiple partners and customers, as of June 30st,
2019, 70.79% of the Company’s accounts receivable (December 31st, 2018: 61.82%) was from the top five balance customers. The
top five customers of the Company’s accounts receivable balance are the main cooperation channels for distribution of mobile games
such as Tencent and Apple. The highly concentrated accounts receivable balance at the end of the period is a normal phenomenon of
business development, and the Company does not have significant credit concentration risks.
(II) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when the Company is required to settle its obligations in the form of cash or
other financial assets. The liquidity risk may result from the inability to sell financial assets at fair value as soon as possible; or from
the inability of the other party to repay their contractual debts; or from debts that are due in advance; or from the inability to generate
expected cash flows.
The Company’s current financial assets can meet working capital needs and capital expenditures, so it does not assume significant
liquidity risks.
(III) M arket risk
M arket risk refers to the possibility of fluctuation in the fair value of financial instruments or future cash flow caused by market price
change. M arket risk includes interest rate risk and foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the possibility of fluctuation in the fair value of financial instruments/future cash flow caused by market
interest rate change. The Company does not have the risk of changes in market interest rates.
2. Foreign currency risk
Exchange rate risk refers to the possibility of fluctuation of the fair value of financial instruments or future cash flows due to changes
in foreign exchange rates. The exchange rate risk of the company mainly related to monetary assets and debts of foreign currency.
The main business place of the Company is in M ainland China and the main activities are calculated in RM B. Therefore, the market
risk of foreign exchange changes tolerated by the Company is not significant.
The ending foreign currency monetary assets and liabilities of the Company can be found in the description of foreign currency
monetary items under Item Notes to Consolidated Financial Statement in thenotes to the financial statements.
VI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RM B
Ending fair value
Item Level I measurement of Level II measurement Level III measurement of
Total
fair value of fair value fair value
I. Continuous fair value
-- -- -- --
measurements
(I) Trading financial assets 450,779,209.43 801,702,412.02 1,252,481,621.45
1. Financial assets measured at 450,779,209.43 0.00 801,702,412.02 1,252,481,621.45
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fair value with changes included
in profits and losses
(1) Debt instrument investment 320,000,000.00 320,000,000.00
(2) Equity instrument
130,779,209.43 801,702,412.02 932,481,621.45
investment
(III) Other equity investment 246,635,981.28 246,635,981.28
Total assets continuously
450,779,209.43 1,048,338,393.30 1,499,117,602.73
measured by fair value
II. Non-continuous
-- -- -- --
measurement of fair value
2. Determining basis for the market price of continuous and non-continuous first-level fair value-measured
project
The fair value of financial products and stock investment is determined based on the open market transaction price.
3. Qualitative and quantitative information of sustainable and non-sustainable third-level fair value
measurement items, evaluation technology and important parameters.
Other equity investments without active market quotation are measured at cost unless the cost measurement is not reliable.
VII. Related parties and related transaction
1. Information of the Company's parent company
Shareholding ratio of Percentage of the Company's
Name of parent Business Registered
Registered address the parent company vote rights held by the parent
company nature capital
against the Company company
Description of the information of the Company’s parent company
The ultimate controller of the Company is Li Weiwei.
Other notes:
2. Information of the Company’s subsidiaries
Details of the subsidiaries of the company are shown in Note IX: Rights and Interests in Other Bodies.
3. Affiliates and joint ventures of the Company
For the important joint ventures or affiliated enterprises of the Company, please refer to Notes IX: Rights and Interests in Other
Entities.
Details on other joint ventures or associated enterprises with balance from related party transactions with the Company this period or
earlier are as follows:
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Names of joint ventures or associated enterprises Relation with the Company
Shenzhen Yiwan Network Technology Co., Ltd. An associated enterprise of the Company
Chengdu Pengwan Technology Co., Ltd. An associated enterprise of the Company
Shanghai Tingting Network Technology Co., Ltd. An associated enterprise of the Company
Chengdu M ofei Technology Co., Ltd. An associated enterprise of the Company
Longzhang Animation (Shanghai) Co., Ltd. An associated enterprise of the Company
Chengdu M odu Technology Co., Ltd. An associated enterprise of the Company
Shenzhen Zhanlong Interactive Entertainment Technology Co., Ltd. An associated enterprise of the Company
Longzhang Network Technology (Shanghai) Co., Ltd. An associated enterprise of the Company
ShaoxingShangyuZhangyu Network Technology Co., Ltd. An associated enterprise of the Company
Shanghai Yuhouyi Network Technology Co., Ltd. An associated enterprise of the Company
Chengdu Popcorn Interactive Entertainment Technology Co., Ltd. An associated enterprise of the Company
Jiangsu Yezi Network Technology Co., Ltd. An associated enterprise of the Company
Shanghai Aoting Network Technology Co., Ltd. An associated enterprise of the Company
Beijing Xize Interactive Entertainment Technology Co., Ltd. An associated enterprise of the Company
Longzhang M edia (Shanghai) Co., Ltd. An associated enterprise of the Company
Other notes
4. Other related parties
Names of other related parties Relationship between other related parties and the Company
A related person for the past 12 months ended January 31st, 2018, (Chairman and
Shenzhen M okylin Technology Co., Ltd.
General M anager of the Company and a director of this company)
A related person (Director and Deputy General M anager of the Company served as
Beijing Colorful Game Technology Co., Ltd.
Directors of the affiliated party within the past 12 months)
A related person (Director and Deputy General M anager of the Company served as
Shenzhen QiFun Network Corp. Ltd.
Directors of the affiliated party within the past 12 months)
A related person (Director and Deputy General M anager of the Company served as
Chengdu 91ACT Technology Company
Directors of the affiliated party within the past 12 months)
Xiamen Huoyou Information Technology Co., A related person (Director and Deputy General M anager of the Company served as
Ltd. Directors of the affiliated party)
Shanghai Zhangmeng Network Technology A related person (Director and Deputy General M anager of the Company served as
Co., Ltd. Directors of the affiliated party within the past 12 months)
Shanghai M ango Interactive Entertainment A related person (Director and Deputy General M anager of the Company served as
Technology Co., Ltd. Directors of the affiliated party)
Wuhu Ningzhong Auto Parts Technology Co.,
A company under of the controlling shareholders before November 13th, 2018
Ltd.
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Natural person who holds more than 5% of the shares of a listed company,
Li Weiwei
Chairman and General M anager
ZengKaitian Natural person who holds more than 5% of the shares of a listed company
Other notes
5. Status of associated transaction
(1) Associated transaction regarding trade of goods and labor services
Profile on purchasing products and obtaining labor services
Unit: RM B
Whether it exceeds
Details of transaction Amount incurred in the Approved Amount incurred in
Related party the transaction
between related parties current period transaction amount the previous period
amount
Beijing Xize Interactive
Shared revenue from
Entertainment Technology 11,705.08 Yes
games
Co., Ltd.
Beijing Colorful Game Shared revenue from
86,064.24 970,000.00 No 364,767.11
Technology Co., Ltd. games
Chengdu Popcorn Interactive
Shared revenue from
Entertainment Technology 2,241,632.06 34,220,900.00 No
games
Co., Ltd.
Shared revenue from
Chengdu 91ACT Technology
games, copyright money 1,625,141.17 13,363,200.00 No
Company
purchasing
Chengdu Pengwan Commissioned R&D
1,044,855.78 10,447,800.00 No 4,816,344.35
Technology Co., Ltd. expense
Chengdu M odu Technology Commissioned R&D
12,103.21 Yes 1,063,809.25
Co., Ltd. expense
Shared revenue from
Chengdu M ofei Technology
games and 4,014,299.52 58,455,900.00 No 20,476,612.59
Co., Ltd.
commissioned R&D fees
Jiangsu Yezi Network Shared revenue from
22,736,516.29 17,515,100.00 Yes
Technology Co., Ltd. games
Longzhang M edia (Shanghai) Commissioned R&D
542,438.06 Yes
Co., Ltd. expense
Xiamen Huoyou Information Shared revenue from
42,199.18 695,500.00 No 136,749.05
Technology Co., Ltd. games
Shanghai M ango Interactive Shared revenue from
169,933.35 1,980,000.00 No 604,927.92
Entertainment Technology games
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Co., Ltd.
Shared revenue from
Shanghai Zhangmeng
games, copyright money 290,573.30 3,691,800.00 No
Network Technology Co., Ltd.
purchasing
ShaoxingShangyuZhangyu Shared revenue from
8,534.97 848,300.00 No 76,623.87
Network Technology Co., Ltd. games
Shared revenue from
Shenzhen Yiwan Network
games and 293,759.25 3,397,300.00 No
Technology Co., Ltd.
commissioned R&D fees
Shenzhen Zhanlong
Shared revenue from
Interactive Entertainment 990,485.31 13,121,400.00 No 76,768.89
games
Technology Co., Ltd.
Shared revenue from
Shanghai Tingting Network
games and No 299,979.17
Technology Co., Ltd.
commissioned R&D fees
Shared revenue from
Shenzhen M okylin
games and No 155,553.92
Technology Co., Ltd.
commissioned R&D fees
Shared revenue from
Shenzhen QiFun Network
games, copyright money No 45,803.04
Corp. Ltd.
purchasing
Shared revenue from
Longzhang Animation
games, copyright money No 4,840,151.19
(Shanghai) Co., Ltd.
purchasing
Longzhang Network
Commissioned R&D
Technology (Shanghai) Co., No 17,669.82
expense
Ltd.
Profile on selling products/providing labor services
Unit: RM B
Details of transaction between Amount incurred in the Amount incurred in the
Related party
related parties current period previous period
Shanghai Yuhouyi Network Technology Co., Ltd. Software operating income 2,519,158.87 14,895,524.15
Shanghai M ango Interactive Entertainment
Software operating income 20,037.16
Technology Co., Ltd.
Beijing Colorful Game Technology Co., Ltd. Software operating income 3,461.47
Note to related party transactions for the purchase and sale of goods, provision and acceptance of labor services
(2) Affiliated-party guarantee
The company acts as the guarantor
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Unit: RM B
Has the guarantee been
The guaranteed Amount of guarantee Starting date of guarantee Ending date of guarantee
fulfilled?
The company acts as the guaranteed
Unit: RM B
Has the guarantee been
Guarantor Amount of guarantee Starting date of guarantee Ending date of guarantee
fulfilled?
Li Weiwei, ZengKaitian 210,000,000.00 June 22nd, 2018 June 21st, 2019 Yes
Li Weiwei, ZengKaitian 159,000,000.00 June 25th, 2018 June 21st, 2019 Yes
Li Weiwei, ZengKaitian 126,040,193.75 June 10th, 2019 August 10th, 2019 No
Status of associated guarantee
(3) Remuneration for key management personnel
Unit: RM B
Item Amount incurred in the current period Amount incurred in the previous period
Remuneration for key management
9,507,086.96 8,095,170.17
personnel
6. Accounts receivable and payable by related parties
(1) Receivables
Unit: RM B
Closing balance Balance at the beginning of the period
Project name Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Shanghai Yuhouyi Network
Accounts receivable 1,705,997.45 25,744.90 2,091,604.00 104,580.20
Technology Co., Ltd.
Beijing Colorful Game Technology
Accounts receivable 370.22 18.51
Co., Ltd.
Chengdu 91ACT Technology
Prepayment 1,810,658.83
Company
Shenzhen Yiwan Network
Prepayment 1,757,187.08 2,193,140.33
Technology Co., Ltd.
Shenzhen Zhanlong Interactive
Prepayment 261,244.04 650,147.37
Entertainment Technology Co., Ltd.
Chengdu Pengwan Technology Co.,
Prepayment 1,167,805.05
Ltd.
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Chengdu M ofei Technology Co.,
Prepayment 2,000,000.00
Ltd.
Longzhang Network Technology
Prepayment 2,061,081.07
(Shanghai) Co., Ltd.
Prepayment Shenzhen QiFun Network Corp. Ltd. 2,264,856.00
Chengdu Popcorn Interactive
Prepayment 1,000,000.00
Entertainment Technology Co., Ltd.
Jiangsu Yezi Network Technology
Prepayment 3,000,000.00
Co., Ltd.
Wuhu Ningzhong Auto Parts
Other receivables 401,310,000.00
Technology Co., Ltd.
(2) Payables
Unit: RM B
Opening book
Project name Related party Ending book value
balance
Accounts payable Beijing Xize Interactive Entertainment Technology Co., Ltd. 11,705.08
Accounts payable Beijing Colorful Game Technology Co., Ltd. 143,661.50 1,512,769.27
Accounts payable Chengdu Popcorn Interactive Entertainment Technology Co., Ltd. 2,191,701.48 175,699.90
Accounts payable Chengdu M odu Technology Co., Ltd. 1,807,142.05 1,794,731.88
Accounts payable Chengdu M ofei Technology Co., Ltd. 1,149,554.23 11,483,657.92
Accounts payable Jiangsu Yezi Network Technology Co., Ltd. 20,773,601.33
Accounts payable Longzhang M edia (Shanghai) Co., Ltd. 81,204.88
Accounts payable Xiamen Huoyou Information Technology Co., Ltd. 134,667.83
Accounts payable Shanghai Aoting Network Technology Co., Ltd. 7,360.48 7,360.48
Accounts payable Shanghai M ango Interactive Entertainment Technology Co., Ltd. 399,109.45 490,418.65
Accounts payable Shanghai Tingting Network Technology Co., Ltd. 299,979.17 299,979.17
Accounts payable Shanghai Zhangmeng Network Technology Co., Ltd. 2,247,205.95 1,941,996.00
Accounts payable ShaoxingShangyuZhangyu Network Technology Co., Ltd. 42,417.40 33,370.33
Accounts payable Shenzhen QiFun Network Corp. Ltd. 250,072.03
Accounts payable Chengdu Pengwan Technology Co., Ltd. 2,985,888.98 311,961.83
Accounts payable Shenzhen Yiwan Network Technology Co., Ltd. 339,622.58
Other payables Xiamen Huoyou Information Technology Co., Ltd. 5,000,000.00 5,000,000.00
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VIII. Share-based payment
1. Overview of share payment
□Applicable √Not Applicable
IX. Commitment and contingencies
1. Material commitments
The existence of material commitments at the balance sheet date
The Company has no significant commitments needing to be disclosed.
2. Contingencies
(1) The fact that the Company has no significant contingencies required to be disclosed should also be
explained
The Company does not have material commitments or contingencies that need to be disclosed.
X. Events after the Balance Sheet Date
1. Profit distribution
Unit: RM B
Proposed distributed profits or dividends 211,225,169.70
XI. Othe r Important Events
1. Segment information
(1) Basis for determining reportable divisions and accounting policies
The Company determines the reporting segment based on internal organizational structure, management requirement and internal
reporting system, and determines the reporting segment based on the product type segment. The performance of mobile and brows er
games were assessed separately.
(2) Financial information of reportable divisions
Unit: RM B
Item M obile games Browser games Offset among segments Total
Operating income 5,426,572,514.55 644,384,988.51 6,070,957,503.06
Operating cost 675,612,778.55 163,373,782.96 838,986,561.51
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(3) If the Company has no reporting segments, or cannot disclose the total assets and total liabilities of each
reporting segment, the reasons shall be explained.
Some of the Company’s assets are used jointly by reporting segments, and corresponding assets and liabilities cannot be easily
classified into the reporting segments.
XII. Notes to Main Items of Financial State ments of Parent Company
1. Other receivables
Unit: RM B
Item Ending balance Beginning balance
Dividends receivable 500,000,000.00
Other receivables 528,604,929.21 891,766,571.39
Total 528,604,929.21 1,391,766,571.39
(1) Dividend receivable
1) Dividends receivable
Unit: RM B
Item (or invested organization) Ending balance Beginning balance
Shanghai Sanqi Interactive Entertainment 500,000,000.00
Total 500,000,000.00
(2) Other receivables
1) Classification of other receivables based on the fund nature
Unit: RM B
Fund nature Ending book value Opening book balance
Deposit and guarantee deposit 65,000.00 65,000.00
Current account of related parties within
528,211,926.83 490,106,699.02
the Group
Equity disposal receivables 0.00 401,310,000.00
Others 362,634.08 317,234.07
Total 528,639,560.91 891,798,933.09
2) Accrual of bad debt provision
Unit: RM B
Stage I Stage II Stage III
Provision for bad debts Total
Expected credit Expected credit losses for Expected credit losses for
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losses in the next 12 the entire duration (without the entire duration (with
months credit impairment) credit impairment)
Balance on January 1st,
32,361.70 32,361.70
2019
Balance on January 1st,
- - - -
2019 is in the period
Accrual of the period 2,270.00 2,270.00
Balance on June 30th,
34,631.70 34,631.70
2019
For the provision for loss, is there any major change in book balances of the period?
□Applicable √Not Applicable
Disclosure by aging
Unit: RM B
Aging Balance at the end of the period
Within 1 year (inclusive) 362,634.08
Within 1 year (inclusive) 362,634.08
1 - 2 year(s) 40,000.00
Over 3 years 25,000.00
3 - 4 years 25,000.00
Total 427,634.08
3) Reserve of the bad debts that are accrued, withdrew and taken back in current period
Accrued provision for bad debts in this period:
Unit: RM B
Change in this period
Type Beginning balance Ending balance
Accrual Recovery or reversal
Other accounts receivable withdrawn
provision for bad debts based on 32,361.70 2,270.00 34,631.70
credit risk feature combination
Total 32,361.70 2,270.00 34,631.70
Including important provision for bad debt transferred back or recovered in this period:
Unit: RM B
Organization name Amount carried forward or recovered Change the way of return
4) Other accounts receivable in top five based on year-end balance collected from arrears party
Unit: RM B
Organization Proportion in total ending Ending balance of
Fund nature Ending balance Aging
name balance of other receivables provision for bad debts
No. 1 Internal current account 528,211,926.83 Within 1 year 99.92% 0.00
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No. 2 Others 232,215.68 Within 1 year 0.04% 11,610.78
No. 3 Others 106,668.40 Within 1 year 0.02% 5,333.42
No. 4 Guarantee deposit / cash
30,000.00 1 - 2 year(s) 0.01% 3,000.00
deposit
No. 5 Guarantee deposit / cash
25,000.00 3 - 4 years 0.00% 12,500.00
deposit
Total -- 528,605,810.91 -- 99.99% 32,444.20
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2. Long-term equity investment
Unit: RM B
Ending balance Balance at the beginning of the period
Item
Book balance Impairment provision Book value Book balance Impairment provision Book value
Investment to subsidiaries 6,382,799,990.80 6,382,799,990.80 6,374,799,990.80 6,374,799,990.80
Investment into associated
26,614,618.42 26,614,618.42 27,593,699.69 27,593,699.69
enterprises and joint ventures
Total 6,409,414,609.22 6,409,414,609.22 6,402,393,690.49 0.00 6,402,393,690.49
(1) Investment to subsidiaries
Unit: RM B
Increase or decrease in this period
Opening balance Ending balance (book Ending balance of
Invested company Additional Withdrawn
(book value) Negative investment Others value) depreciation reserves
investments impairment provision
Jiangsu Aurora Network Technology Co., Ltd. 1,400,000,000.00 1,400,000,000.00
Jiangsu Zhiming Network Technology Co., Ltd. 254,799,990.80 254,799,990.80
Sanqi Entertainment Network Technology
0.00 4,728,000,000.00 4,728,000,000.00
(Guangzhou) Co., Ltd.
Sanqi Interactive Entertainment (Shanghai)
4,720,000,000.00 4,720,000,000.00 0.00
Technology Co., Ltd.
Total 6,374,799,990.80 4,728,000,000.00 4,720,000,000.00 0.00 6,382,799,990.80
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(2) Investment into associates and joint ventures
Unit: RM B
Increase or decrease in this period
Opening Ending balance of
Investment Profit and loss on Other Other Profit or cash Withdrawn Ending balance
balance (book Additional Negative depreciation
company investments confirmed comprehensive equity dividend declared impairment Others (book value)
value) investments investment reserves
with equity method income adjustment change to be distributed provision
I. Joint ventures
II. Associates
Shanghai Jueli
Culture M edia 27,593,699.69 -979,081.27 26,614,618.42
Co., Ltd.
Subtotal 27,593,699.69 -979,081.27 26,614,618.42
Total 27,593,699.69 -979,081.27 26,614,618.42
(3) Others notes
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3. Investment income
Unit: RM B
Amount incurred in the current Amount incurred in the
Item
period previous period
Long-term equity investment income measured by cost method 790,000,000.00 200,000,000.00
Long-term equity investment income measured by equity method -979,081.27 -1,301,101.84
Investment profit by the disposal of trading financial assets -12,624.02
Total 789,008,294.71 198,698,898.16
XIII. Supple mentary data
1. Incidental profit or loss statement in current period
√Applicable □Not Applicable
Unit: RM B
Item Amount Description
M ainly profit and loss from the
Losses and profits on disposal of non-current assets 8,967,295.34 disposal of long-term equity
investment and fixed assets.
Government subsidy included in current profit or loss (except those closely M ainly government subsidy other
related to enterprise operation and received based on consolidated national 23,416,359.86 than the refund of value-added tax
standard quota or quantitative) and addition or deduction of VAT.
M ainly the income from bank’s
Profit or loss of asset whose investment or management is entrusted to others 11,172,479.46
financial products.
Except effective hedging business relating to normal operating business of the
Company, profit or loss caused by change in the fair value of trading financial
assets, derivative financial assets, trading financial liabilities and derivative
44,790,828.46
financial liabilities, and investment profit for disposal of trading financial
assets, derivative financial assets, trading financial liabilities and derivative
financial liabilities and other creditors' investments.
Other non-operating revenues and expenditures except the foregoing items 408,225.48
Less: Affected amount of income taxes 4,387,332.89
Affected amount of minority interest income 662,896.41
Total 83,704,959.30 --
As to non-recurring profits and losses determined based on the definition provided in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-Recurring Profit and Loss, and the recurring
profits and losses determined from non-recurring profits and losses listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Non-Recurring Profit and Loss, reasoning shall be provided
□Applicable √Not Applicable
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2. Return on equity and earnings per share
Weighted average Earnings per share
Profits during reporting period rate of return on Basic earning per share Diluted earning per share
equity (yuan/share) (yuan/share)
Net profits attributable to the company common shareholders 16.31% 0.49 0.49
Net profits attributable to the company common shareholders
14.98% 0.47 0.47
after deducting non-recurring profits and losses
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