香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 ARCHOSAUR GAMES INC. 祖龍娛樂有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9990） 截至2024年6月30日止六個月的中期業績公告 祖龍娛樂有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其 附屬公司（統稱「本集團」）截至2024年6月30日止六個月的未經審核綜合中期業績 （「業績公告」）如下。 本集團截至2024年6月30日止六個月的中期業績已經審核委員會審閱並由本公司 獨立核數師羅兵咸永道會計師事務所根據國際審計與鑒證準則理事會頒佈的國際 審閱準則第2410號「由實體的獨立核數師執行中期財務資料審閱」審閱。 1 財務表現摘要 附註： | --- | --- | --- | --- | |------------------------------------------------------|------------------------- ...

大家好欢迎参加德邦传媒互联网海外中期线上策略会祖龙娱乐目前所有参会者均处于静音状态现在开始播报免责声明免责声明本次电话会议仅服务于德邦证券研究所客户不构成投资建议相关人员应自主作出投资决策并自行承担投资风险 德邦证券不对因使用本次内容所导致的任何损失承担任何责任未经德邦证券事先书面许可任何机构或个人不得以任何形式复制刊载转载转发引用本次会议内容否则由此造成的一切后果及法律责任由该机构或个人承担本公司保留追究其法律责任的权利市场有风险投资需谨慎 各位投资人大家上午好我是德邦证券传媒互联网海外的手机分析师马晓我们中期策略会是安排在线上然后今天是特别荣幸邀请到主动娱乐的几位领导跟大家做一个互动交流我们交流分两个环节首先公司领导分享公司的相关情况然后后面我们有一个互动交流的环节我就把时间交给公司领导有请 谢谢马总也非常感谢今天各位在线的投资人我是祖龙娱乐R团队的侯明今天我们团队有三位同事参加有我和王萍以及王清润我们会有一个PPT的内容先简要跟大家分享一下公司过往的一些战略的一些推进以及我们近期的一些业务更新最后在QA环节也会跟大家交流大家关心的问题我先把时间交给我的同事王萍谢谢 大家好我是王婷欢迎大家参加今天的交流会 ...

大家好欢迎参加德邦传媒互联网海外中期线上策略会祖龙娱乐目前自我参会者正处于静音状态现在开始播报免责声明免责声明本次电话会议仅服务于德邦证券研究所客户不构成投资建议相关人员应自主作出投资决策并自行承担投资风险 德邦证券不对因使用本次内容所导致的任何损失承担任何责任未经德邦证券事先书面许可任何机构或个人不得以任何形式复制刊载转载转发引用本次会议内容否则由此造成的一切后果及法律责任由该机构或个人承担本公司保留追究其法律责任的权利市场有风险投资需谨慎 各位投资人大家上午好我是德邦证券传媒互联网海外的首席分析师马孝我们的中期策略会是安排在线上今天是特别荣幸邀请到祖龙娱乐的几位领导跟大家做一个互动交流我们交流分两个环节首先公司领导分享公司的相关情况后面我们有一个互动交流的环节我就把时间交给公司领导有请 谢谢马总也非常感谢今天各位在线的投资人我是祖隆娱乐R团队的侯明今天我们团队有三位同事参加有我和王萍以及王庆苑我们会有一个PPT的内容先简要跟大家分享一下公司过往的一些战略的一些推进以及我们近期的一些业务更新随后在QA环节也会跟大家交流大家关心的问题我先把时间交给我的同事王萍谢谢 大家好我是王萍欢迎大家参加今天的交流会我将简 ...

Summary of the Conference Call Company and Industry Involved - The conference call is related to **Zulong Entertainment**, a company in the **media and entertainment industry**. Core Points and Arguments - The call began with a **disclaimer** stating that the meeting is intended for **Debon Securities Research clients** and does not constitute investment advice, emphasizing that participants should make their own investment decisions and bear the associated risks [1]. Other Important but Possibly Overlooked Content - The call was initiated with all participants on **mute**, indicating a structured approach to the meeting [1].

Corporate Governance - The company has established four main board committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Management Committee, each operating according to its terms of reference[17] - The Audit Committee consists of three members, with Mr. Zhu Lin serving as the chairman, responsible for reviewing financial statements and overseeing internal controls and risk management systems[17] - The Nomination Committee evaluates candidates for board appointments based on diversity factors such as gender, age, cultural background, and professional expertise[18] - As of December 31, 2023, the board comprises six male members and one female member, with no quantifiable diversity targets set[21] - The company ensures the independence of the board by establishing mechanisms to convey independent opinions and recommendations for objective decision-making[12] - The chairman holds annual meetings with independent non-executive directors without the presence of executive and non-executive directors[14] - The company has obtained an exemption from strict compliance with Listing Rules 3.28 and 8.17 for its co-company secretary, Ms. Hao Lili[25] - The board reviews and oversees compliance with the company's whistleblowing policy as part of its corporate governance responsibilities[9] - The company has adopted a shareholder communication policy to ensure timely and equal access to relevant information, encouraging shareholder participation in annual general meetings[36][37] Financial Performance and Risk Management - The company has adopted a financial risk management policy to control risks such as tax, currency, and financial reporting risks[28] - The board monitors financial performance and key operational statistics monthly with the assistance of the internal financial reporting department[28] - The company has implemented strict internal procedures to ensure compliance with relevant laws and regulations, continuously reviewing risk management policies and measures[32] - The company's risk management and internal control systems are designed to ensure effective and adequate policy implementation[32] - Revenue for 2023 increased to RMB 908,489 thousand, up 55.5% from RMB 584,121 thousand in 2022[58] - Gross profit for 2023 was RMB 650,407 thousand, a 53.5% increase from RMB 423,620 thousand in 2022[58] - Operating loss for 2023 decreased to RMB 357,029 thousand, a 53.7% improvement from RMB 771,437 thousand in 2022[58] - Net loss for 2023 was RMB 315,561 thousand, a 58.9% improvement from RMB 768,547 thousand in 2022[58] - R&D expenses for 2023 decreased to RMB 582,208 thousand, down 22.0% from RMB 746,364 thousand in 2022[58] - Cash and cash equivalents at the end of 2023 were RMB 555,033 thousand, a 55.0% decrease from RMB 1,232,999 thousand at the end of 2022[71] - The company received RMB 35,800 thousand from borrowings and repaid the same amount in 2023[71] - The company's financial income for 2023 was RMB 51,561 thousand, a 119.2% increase from RMB 23,524 thousand in 2022[58] - The company's financial costs for 2023 decreased to RMB 4,271 thousand, down 33.7% from RMB 6,438 thousand in 2022[58] - The company's net financial income for 2023 was RMB 47,290 thousand, a 176.8% increase from RMB 17,086 thousand in 2022[58] - Adjusted net loss for 2023 was RMB 282.9 million, an improvement from RMB 731.9 million in 2022[107] Revenue and Game Operations - The company's consolidated game publishing and operating revenue for the year ended December 31, 2023, was approximately RMB 709 million, primarily from the sale of in-game virtual items[47] - Revenue from consumable in-game virtual items is recognized upon consumption or expiration, while revenue from durable in-game virtual items is recognized proportionally over the expected player relationship period[47] - The company's independent auditor identified the determination of the expected player relationship period as a key audit matter due to significant judgment and estimation involved[48] - The auditor assessed the accuracy and completeness of key input data used to determine the expected player relationship period, including historical player behavior and churn rates[48] Subsidiaries and Investments - The company holds 100% equity in multiple subsidiaries, including Finger Games Pte. Ltd. (Singapore), Dream Cube Games Limited (Dubai), and Archosaur Games Japan Ltd. (Japan), all established in 2021[75] - The registered capital of Shanghai Huanzhimeng Technology Co., Ltd. is RMB 10,000,000, and it is fully owned by the company, focusing on mobile game development in China[75] - The company's financial products investment increased significantly from RMB 151,115 thousand in 2022 to RMB 433,293 thousand in 2023, with an expected return rate ranging from 2.14% to 6.00%[83] - Preferred stock investments decreased from RMB 14,349 thousand in 2022 to RMB 2,868 thousand in 2023, with expected volatility ranging from 35.80% to 38.89%[83] - Other common stock investments remained stable at around RMB 3,526 thousand in 2022 and RMB 3,528 thousand in 2023, with expected volatility between 51.77% and 54.88%[83] - Private equity and venture capital fund investments decreased from RMB 163,435 thousand in 2022 to RMB 135,935 thousand in 2023[83] - Other fund investments increased slightly from RMB 157,664 thousand in 2022 to RMB 165,176 thousand in 2023[83] - Structural investments decreased from RMB 239,406 thousand in 2022 to RMB 199,617 thousand in 2023[83] - The company controls subsidiaries through contractual arrangements, allowing it to influence variable returns and consolidate financial statements[91] - The company uses the acquisition method to account for business combinations, measuring identifiable assets and liabilities at fair value at the acquisition date[92] - The company has a subsidiary, Tianjin Zulong Technology Co., Ltd., which is consolidated under contractual arrangements[94] Financial Reporting and Accounting Standards - The company's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and the Hong Kong Companies Ordinance[78] - New accounting standards, including IFRS 17 Insurance Contracts and amendments to IAS 1 and IAS 8, became effective from January 1, 2023[80] - The company will adopt new accounting standards and interpretations, including amendments to IAS 1, IFRS 16, and IAS 21, effective from January 1, 2024, and January 1, 2025[87] - The company's financial statements are audited by PricewaterhouseCoopers, a registered public interest entity auditor[102] - The company's financial assets are classified into categories measured at fair value, with changes recognized in other comprehensive income or profit or loss[144] Financial Assets and Valuation - Financial assets measured at fair value totaled RMB 940.4 million as of December 31, 2023[116] - The company had no financial liabilities measured at fair value as of December 31, 2023[115] - Total fair value of financial assets categorized as Level 3 instruments amounted to RMB 729,495 thousand as of December 31, 2022[118] - The company's financial assets include investments in wealth management products (RMB 151,115 thousand), other fund investments (RMB 149,439 thousand), and structured investments (RMB 140,107 thousand) under Level 3 instruments[118] - Non-current financial assets under Level 3 instruments include private equity and venture capital fund investments (RMB 163,435 thousand), structured investments (RMB 99,299 thousand), and preferred stock investments (RMB 14,349 thousand)[118] - The company uses specific valuation techniques such as market quotes, net asset value of investments, and discounted cash flow analysis to determine the fair value of financial instruments[119] Shareholder Information and Company Details - The company's headquarters are located in Beijing, China, with a principal place of business in Hong Kong[105] - The company's shares are traded under the stock code 9990[105] - The company's website is www.zulong.com[105] - Tencent held a 17.23% stake in the company as of December 31, 2023[132] Intangible Assets and Amortization - The company capitalizes costs related to purchased computer software and amortizes them over an estimated useful life of 3 to 15 years[139] - Trademarks and domain names are amortized over an estimated useful life of 5 to 10 years[143] Dividend Policy - The company's dividend payments are determined by the board of directors, considering factors such as actual and expected operating performance, cash flow, financial condition, and future expansion plans[33] Financial Position - Total assets decreased to RMB 2,743.6 million in 2023 from RMB 2,953.3 million in 2022[110] - Total liabilities increased to RMB 409.7 million in 2023 from RMB 363.1 million in 2022[110] - Total equity decreased to RMB 2,333.9 million in 2023 from RMB 2,590.2 million in 2022[110] Revenue and Profit Details - Revenue for 2023 was RMB 908.5 million, a 55.5% increase from RMB 584.1 million in 2022[107] - Gross profit for 2023 was RMB 650.4 million, up 53.5% from RMB 423.6 million in 2022[107] - R&D expenses decreased to RMB 582.2 million in 2023 from RMB 746.3 million in 2022, a 22% reduction[107] - Operating loss improved to RMB 357.0 million in 2023 from RMB 771.4 million in 2022[107]

[Table_Summary] [Table_Title] 大单品驱动增长，关注老牌硬核研发商业务模式升级 [Table_ReportDate] 祖龙娱乐（9990.HK）公司简评报告 | 2024.04.08 [Table_Rank] 评级：买入 核心观点 [Table_Authors] 王建会 传媒互联网首席分析师 SAC 执证编号：S0110522050001 wangjianhui2@sczq.com.cn 李甜露 传媒互联网联席首席分析师 SAC 执证编号：S0110516090001 litianlu@sczq.com.cn 电话：86-10-8115 2690 辛迪 传媒互联网行业分析师 SAC 执证编号：S0110522110003 xindi2022@sczq.com.cn 电话：86-10-8115 2690 [Table_Chart] 市场指数走势（最近 1 年） 祖龙娱乐 恒生指数 -100% -80% -60% -40% -20% 0% 20% 23-0423-0523-0623-0723-0823-0923-1023-1123-1224-0124-0224-03 资料来源：聚源数据 ...

Game Development and Strategy - As of December 31, 2023, the company launched 20 premium mobile games across over 170 markets, supporting 14 languages[6] - The company emphasizes a core strategy of premiumization and globalization, aiming to create leading games across various genres for a superior online entertainment experience[13] - The company is actively developing new titles, including "Three Kingdoms Heroes: Honghu Dominance," which has completed its first paid test and is progressing well[23] - The company is collaborating with Epic Games on Unreal Engine 5 technology, with a project code-named "Odin" under development[12] - The company is leveraging Unreal Engine 5 technology for future game development, enhancing product quality and user experience[39] - The company plans to launch 8 new game products globally from 2024 to 2026, including MMORPG, SLG, and strategy card games[65] - The company plans to continue its strategy of product diversification, with new titles such as a Chinese-style RPG and a strategy game based on a well-known IP[32] - Project Odin, an MMORPG+ game based on the "Dragon Tribe" series, is scheduled for production in 2025[69] Financial Performance - The company's revenue for 2023 reached RMB 908.5 million, a 55.5% increase from RMB 584.1 million in 2022[26] - Gross profit for 2023 was RMB 650.4 million, reflecting a 53.5% increase compared to RMB 423.6 million in the previous year[26] - The net loss for the year was RMB 315.6 million, a 58.9% improvement from a loss of RMB 768.5 million in 2022[26] - Revenue for the year ended December 31, 2023, was RMB 908.5 million, an increase of 55.5% compared to RMB 584.1 million for the same period in 2022[46] - Revenue generated from mainland China was RMB 592.1 million, a significant increase of 230.2% from RMB 179.3 million in the previous year[48] - Adjusted net loss for the year was RMB 282.9 million, a reduction from RMB 731.9 million in the previous year, attributed to increased revenue and controlled R&D costs[55] - The total revenue from game publishing and operations for the year ended December 31, 2023, was RMB 709.3 million, an increase of 105.4% from RMB 345.4 million for the year ended December 31, 2022[71] - Revenue from external customers in mainland China was RMB 592,142,000, a significant increase of 230.5% compared to RMB 179,352,000 in 2022[167] User Engagement and Market Reach - The total registered user base for the 13 games currently in operation exceeds 150 million, with 2 games generating over RMB 4 billion in cumulative revenue[18] - The game "Dragon Tribe Fantasy" has achieved cumulative revenue exceeding RMB 4.4 billion and has over 44 million registered users globally[19] - The game "Dragon Tribe Fantasy" generated over RMB 2 billion in cumulative revenue outside of mainland China as of December 31, 2023[33] - Cumulative registered users for "Shining Bright" exceeded 12 million as of December 31, 2023[63] - Cumulative revenue for "Under the Hongtu" surpassed RMB 1.6 billion, with over 7.3 million registered users[64] - Four games have achieved cumulative revenue between RMB 1 billion and RMB 3 billion, showcasing the company's successful product portfolio[18] - The existing game "Dreaming of the Sword Immortal" has achieved over RMB 4 billion in global cumulative revenue as of December 31, 2023[42] Cost Management and Expenses - Research and development expenses for the year ended December 31, 2023, decreased by 22.0% to RMB 582.2 million from RMB 746.3 million for the year ended December 31, 2022[77] - Sales and marketing expenses for the year ended December 31, 2023, decreased by 2.2% to RMB 274.5 million from RMB 280.6 million for the year ended December 31, 2022[78] - Administrative expenses for the year ended December 31, 2023, decreased by 2.9% to RMB 105.1 million from RMB 108.2 million for the year ended December 31, 2022[79] - Employee benefit expenses decreased to RMB 589,812,000 from RMB 730,874,000, a reduction of 19.4%[172] Cash Flow and Investments - Operating cash outflow for the year was RMB 79.5 million, a decrease of 84.5% from RMB 514.5 million in the previous year[59] - The net cash used in investing activities for the year ended December 31, 2023, was RMB 589.1 million, compared to RMB 85.7 million for the year ended December 31, 2022[88] - The net cash used in operating activities for the year ended December 31, 2023, was RMB (79.5) million, compared to RMB (514.5) million for the year ended December 31, 2022, representing an improvement of 84.5%[117] - The company reported a net cash outflow from financing activities of RMB 19.2 million for the year ended December 31, 2023, a decrease of 83.8% from RMB 118.3 million for the year ended December 31, 2022[119] - The total capital expenditure for the years ended December 31, 2023, and 2022, was RMB 4.4 million and RMB 40.6 million, respectively, reflecting a decrease of 89.2% due to reduced purchases of intangible assets[121] Corporate Governance and Future Plans - The board of directors is reviewing the effectiveness of the corporate governance structure to assess the need for separating the roles of Chairman and CEO[129] - The company is taking a more cautious approach in identifying suitable acquisition and investment targets due to global economic uncertainties[127] - The company has delayed the expected timeline for utilizing net proceeds for strategic acquisitions and investments in entertainment and technology sectors to July 2024, primarily due to the need for more time to identify suitable IP[101] - The company plans to utilize the remaining net proceeds from the global offering for enhancing development capabilities and expanding the game portfolio, with 40% allocated to this purpose, amounting to RMB 943.5 million[100] Taxation and Compliance - The effective tax rate for taxable profits in Hong Kong is 16.5% for the years ended December 31, 2023, and 2022[196] - The company’s taxable profits in China are subject to a tax rate of 25% for the years ended December 31, 2023, and 2022[197] - Tianjin Zulong Technology Co., Ltd. has renewed its high-tech enterprise status, allowing it to enjoy a preferential income tax rate of 15% from November 2023 to November 2026[198] - Beijing Fantasy Mermaid Technology Co., Ltd. has also renewed its high-tech enterprise status, granting it a 15% preferential income tax rate from December 2022 to December 2025[199] - A new policy effective from 2023 allows companies engaged in R&D activities to claim 200% of their R&D expenses as an excess deduction when determining taxable profits[200]

中期簡明綜合財務資料附註 (a) 開曼群島及英屬處女群島（「英屬處女群島」）所得稅 (b) 香港所得稅 (c) 中國企業所得稅（「企業所得稅」） 根據企業所得稅法，祖龍（天津）科技股份有限公司（「天津祖龍」）於2017年被認定為「高新技術企業」 （「高新技術企業」），為期三年，並於2020年10月重續其資格至額外三年。天津祖龍有權就其自2020年 10月至2023年10月三年期間的應課稅溢利享有15%的優惠所得稅稅率。管理層已作出最佳估計，預期天 津祖龍重續資格後，2023年仍將合資格為高新技術企業。 Archosaur Games Inc. 祖龍娛樂有限公司 Stock Code 股份代號 : 9990 02 祖龙娛樂有限公司 中期報告 2023 釋義 | --- | --- | --- | |------------------------|-------|------------------------------------------------------------------------------------------------------------------------------ ...

截至2023年6月30日止六個月的中期業績公告 財務表現摘要 (1) 我們將經調整虧損淨額定義為期內虧損再加回股份酬金開支予以調整。我們消除管理層認 為對我們經營業績不具指示性的項目的影響，原因為其屬非現金項目。 我們矢志成為世界頂級的遊戲公司，持續開發各品類行業領先的精品遊戲，為全 球遊戲玩家創造卓越的在線娛樂體驗。 在全球化戰略佈局方面，我們在不同國家及地區持續輸出高質量產品，對各地市 場的玩家用戶進行深度分析，構建以用戶需求為核心更具針對性的產品推廣策略 及發行模式。《以閃亮之名》在全球的優秀表現，充分體現了我們對全球化戰略的 高度重視，也展現了祖龍娛樂在多個國家及地區市場的強大實力。此外，我們與 國際知名廠商合作的頂級IP產品擴大了祖龍娛樂在全球範圍的影響力，阿凡達手 遊《阿凡達：重返潘多拉》項目的順利推進象徵著祖龍娛樂精品化的遊戲研發與運 作得到了國際知名廠商的認可，並為我們進一步開拓不同國家及地區市場樹立了 堅定的信心。 營的13款遊戲的全球累計註冊用戶數超過1.5億人。其中，(i)有1款遊戲全球累計 流水超過人民幣40億元；(ii)3款遊戲全球累計流水超過人民幣30億元；(iii)6款遊 戲全球 ...

Corporate Governance - The company maintains a high level of corporate governance, adhering to principles of integrity, accountability, transparency, independence, diligence, and fairness[23] - The board of directors is responsible for leadership, internal control, and overseeing the company's business, strategic decisions, and performance[24] - The company has four main board committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Management Committee, each operating within its terms of reference[38] - The company's board of directors complies with the requirement to appoint at least three independent non-executive directors, with one possessing the necessary professional qualifications in accounting or financial management[28] - The company emphasizes the importance of board independence for effective corporate governance and decision-making, ensuring that independent opinions and recommendations are communicated to the board[32] - The company's Board of Directors consists of 7 members, including 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors, ensuring strong independence[45] - The company's Audit Committee is composed of 3 members, with Mr. Zhu Lin serving as the Chairman, responsible for reviewing financial statements and overseeing internal controls and risk management systems[58] - The company's Nomination Committee considers diversity in terms of gender, age, cultural and educational background, industry experience, technical and professional skills, and tenure when recommending candidates for the Board[59] - The company's Board of Directors held 5 meetings during the year, with all directors attending all meetings, and the meeting minutes were recorded in detail and distributed to directors for review[54] - The company's independent non-executive directors attended all relevant Board meetings where they had no material interest, ensuring proper governance and decision-making[57] - The company's directors participated in various training programs, including updates on listing rules, directors' duties, and ESG reporting guidelines, to enhance their knowledge and skills[47] - The company's board of directors includes executive directors Li Qing (Chairman) and Bai Wei, non-executive directors Liu Ming and Lu Xiaoyin, and independent non-executive directors Bai Kun, Zhu Lin, and Ding Zhiping[97] Financial Performance - Revenue for 2022 decreased to RMB 584.1 million, a 36.5% decline compared to RMB 920.8 million in 2021[124] - Gross profit for 2022 was RMB 423.6 million, down 40.6% from RMB 713.5 million in 2021[124] - R&D expenses increased to RMB 746.3 million in 2022, up 5.8% from RMB 705.6 million in 2021[124] - Operating loss for 2022 widened to RMB 771.4 million, compared to an operating loss of RMB 289.4 million in 2021[124] - Adjusted net loss for 2022 was RMB 731.9 million, compared to an adjusted net loss of RMB 237.7 million in 2021[124] - Revenue for 2022 decreased by 36.6% to RMB 584.1 million compared to RMB 920.8 million in 2021[169] - Gross profit for 2022 decreased by 40.6% to RMB 423.6 million compared to RMB 713.5 million in 2021[169] - R&D expenses increased by 5.8% to RMB 746.3 million in 2022 compared to RMB 705.6 million in 2021[169] - Sales and marketing expenses increased by 13.5% to RMB 280.6 million in 2022 compared to RMB 247.2 million in 2021[169] - Operating loss for 2022 increased by 166.6% to RMB 771.4 million compared to RMB 289.4 million in 2021[169] - Net loss for 2022 increased by 153.4% to RMB 768.5 million compared to RMB 303.3 million in 2021[169] - Adjusted net loss for 2022 increased by 207.9% to RMB 731.9 million compared to RMB 237.7 million in 2021[169] - Total assets in 2022 were RMB 2,953.3 million, a decrease from RMB 3,518.1 million in 2021[153] - Total liabilities in 2022 were RMB 363.1 million, slightly higher than RMB 351.7 million in 2021[153] - Total equity in 2022 was RMB 2,590.2 million, down from RMB 3,166.4 million in 2021[153] - The company's distributable reserves amounted to RMB 6,243.3 million as of December 31, 2022[69] - The company's reserves and changes in reserves are detailed in the consolidated financial statements notes 25 and 33(b) on pages 153 and 167 of the annual report[68] - The company's consolidated financial performance for the year ended December 31, 2022, is detailed on pages 85-168 of the annual report[61] Share Repurchase and Dividends - The company repurchased a total of 12,616,370 shares in 2022, with a total repurchase price of HKD 61,261,899.90[33] - The company repurchased a total of 12,616,370 shares at a total cost of HKD 61,261,899.90 during the year, with 5,732,000 shares yet to be canceled as of December 31, 2022[69] - The company's Board of Directors resolved not to recommend any final dividend for the year ended December 31, 2022[62] Global Offering and Proceeds Utilization - The net proceeds from the global offering amounted to approximately HKD 2,358.5 million, with 40% allocated to enhancing development capabilities and expanding the game portfolio[77][79] - As of December 31, 2022, approximately HKD 2,028.3 million of the net proceeds from the global offering had been utilized[80] - The company plans to use the remaining net proceeds for strategic acquisitions and investments in the upstream and downstream of the industry value chain, with an expected utilization period from January 2023 to July 2023[79] - The company plans to temporarily place unused net proceeds in short-term interest-bearing instruments such as liquid fixed-income securities, short-term bank deposits, short-term low-risk financial products, or money market instruments with licensed commercial banks or other recognized financial institutions[94] - The original expected timeline for utilizing net proceeds for strategic acquisitions, investments in the upstream and downstream industry value chain, and expanding IP reserves was July 2022, but delays occurred due to unspecified reasons[95] Game Development and Performance - The company launched 19 mobile games by the end of 2022, available in over 170 regions with 14 language versions[154] - The game "以閃亮之名" topped the iOS free game charts in Hong Kong, Macau, Taiwan, Singapore, and Malaysia on its launch day in July 2022[155] - "以閃亮之名" ranked 2nd, 3rd, and 4th in the iOS game bestseller charts in Hong Kong, Macau, and Taiwan respectively within one month of launch[156] - The game "以閃亮之名" topped the Japanese iOS free game chart on its launch day in December 2022[156] - The company is developing a new SLG game "三國群英傳" based on a well-known IP, currently in the testing phase[158] - A strategy card game based on the "龍族" IP (Project E) is planned for future release[158] - The company aims to expand its product categories and explore multi-platform development[157] - The company has launched 19 high-quality mobile games in over 170 regional markets, with 13 games in operation and over 140 million global registered users[172] - 1 game has generated over RMB 4 billion in global cumulative revenue, 3 games over RMB 3 billion, and 6 games over RMB 1 billion[172] - The company has 5 games developed using Unreal Engine 4 and is among the first Chinese companies to explore Unreal Engine 5, positioning itself for future competitive advantages[163] - 《Shining Nikki》 achieved over RMB 100 million in revenue in Mainland China by the report date[173] - 《Shining Nikki》 generated over RMB 10 million in revenue on its first day of launch in Mainland China[173] - 《Shining Nikki》 ranked No. 1 on the iOS free game chart in Mainland China for four consecutive days after its launch[173] - 《Shining Nikki》 secured top 5 positions in the iOS game bestseller charts across Hong Kong, Macau, and Taiwan after updates[173] - 《Shining Nikki》 entered the top 20 of Japan's iOS game bestseller chart within two weeks of its launch[173] - 《Avatar: Reborn》 is expected to launch globally in 2023, combining MMORPG and shooting elements[175][184] - 《Shining Nikki》 has obtained dual-platform (mobile and PC) game licenses in Mainland China, indicating plans for multi-platform expansion[183] - The company plans to expand into PC and console platforms for future game projects, focusing on action and shooting genres[186] - 《Shining Nikki》 will be launched in Europe, America, and Southeast Asia following its success in Mainland China and other regions[173] - The company is exploring the integration of MMORPG with action and shooting elements in future game developments[184] - The game "Life Makeover" has demonstrated strong performance in overseas markets, reflecting the company's commitment to globalization[187] - The game "Three Kingdoms Tactics" achieved a cumulative revenue of over RMB 1.4 billion and registered over 6.9 million users by December 31, 2022[199] - The company continues to benefit from stable performance of classic games such as "Dream Zhu Xian" and "World of Kings 3D"[200] Global Strategy and Market Expansion - The company's global strategy focuses on "global distribution" as a prerequisite for product development, ensuring products are easily accepted by global players[187] - The company signed an exclusive agency and operation agreement with Tencent Shanghai and Shenzhen Tencent Tianyou for the promotion and operation of authorized games in South Korea[133] - The company entered into an exclusive, non-transferable licensing agreement with Tencent Penguin on June 18, 2022, to adapt, develop, publish, and operate a game based on the original work "Dragon Clan" and use related animation content[103] Technology and Innovation - The company utilizes Unreal Engine 4 and Unreal Engine 5, developed by Epic Games, for game development[120] - The company is actively exploring the application of AI in game development, particularly in areas like NPC creation and immersive experiences[192] Environmental, Social, and Governance (ESG) - The company's environmental policies and performance are detailed in the Environmental, Social, and Governance Report for the year ended December 31, 2022[66] Shareholder Information - The company's share transfer registration will be suspended from June 13, 2023, to June 16, 2023, to determine eligibility for attending and voting at the Annual General Meeting[63] - As of December 31, 2022, Perfect World Interactive Entertainment Co., Ltd. held 16.46% of the company's shares[109] - The company's shares are listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 700), and as of December 31, 2022, a subsidiary held 17.09% of the company's shares[116] Procurement and Suppliers - The largest supplier accounted for 15.7% of the company's total procurement, while the top five suppliers accounted for 40.8% of total procurement in 2022[4] Employee Information - The company has a total of 1,200 full-time employees as of December 31, 2022, with 78% in R&D and 12% in publishing and operations[190] Challenges and Future Outlook - The company faced challenges in 2022 due to slower-than-expected recovery in the global economy and underperformance of a product launched in the first half of the year[128] - The company remains committed to leveraging its technical advantages and international expansion to maintain its leading position in the competitive gaming industry[128]