Financial Performance - The company achieved operating revenue of ¥4,849,950,685.86, representing a year-on-year growth of 4.75%[2] - Net profit attributable to shareholders decreased by 69.32% to ¥1,546,847,991.45 compared to the previous year[2] - Excluding non-recurring gains from the previous year, the net profit attributable to shareholders decreased by 37.87% to ¥1,284,832,053.20, indicating a significant narrowing of the decline[2] - The decline in net profit was primarily due to high one-time gains in the previous reporting period and the impact of the pandemic on domestic business performance[3] - The company's operating revenue for 2021 was approximately ¥4.85 billion, representing a 4.75% increase compared to the adjusted revenue of ¥4.63 billion in 2020[23] - The net profit attributable to shareholders for 2021 was approximately ¥1.55 billion, a significant decrease of 69.32% from the adjusted net profit of ¥5.04 billion in 2020[23] - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2021 was approximately ¥1.28 billion, down 37.87% from the adjusted figure of ¥2.07 billion in 2020[23] - The company's total assets at the end of 2021 were approximately ¥17.90 billion, reflecting a 2.49% increase from the adjusted total assets of ¥17.46 billion at the end of 2020[24] - The diluted earnings per share for 2021 was ¥1.31, a decrease of 69.75% compared to ¥4.33 in 2020[24] - The company reported a net cash flow from operating activities of approximately ¥1.17 billion in 2021, which is a 2.89% increase from the adjusted figure of ¥1.14 billion in 2020[23] Strategic Initiatives - The company plans to optimize its strategic layout and explore markets with higher growth potential while enhancing product offerings and R&D efficiency[4] - The company is expanding its platform business to extend user lifecycles and improve lifetime value (LTV) to mitigate cyclical fluctuations in gaming revenue[8] - The company is committed to adapting to market changes and investing in new product development and technology to maintain industry leadership[8] - The company aims to cultivate high-quality foreign exchange risk management talent to effectively manage exchange rate risks[10] - The company is focusing on strengthening its foreign exchange risk management mechanisms in response to potential currency fluctuations due to its significant overseas operations[10] - The company aims to enhance its market share by deepening its presence in the domestic market and providing personalized products and services[114] - The company is expanding its revenue structure by diversifying consumable items, advertisements, and other value-added services[115] Market Expansion - The global internet user base continues to grow, with nearly 40% of the population still unconnected, indicating potential for future internet penetration[4] - The company has established subsidiaries in Europe, America, and Southeast Asia since 2009, with overseas business revenue continuously increasing as a proportion of total revenue[10] - Kunlun Wanwei's overseas market revenue contribution is expected to increase from 70% in 2021 to approximately 80% in 2022, reflecting its successful global expansion strategy[39] - The Opera platform, acquired by Kunlun Wanwei, has nearly 360 million average monthly active users globally, enhancing the company's international presence[42] - The company is focusing on UGC game development to provide higher freedom gaming experiences and attract players of different age groups[47] Investment and Acquisitions - The company has invested in various sectors such as social entertainment, AI, biomedicine, logistics, cross-border e-commerce, and new energy, achieving considerable investment returns from projects like Grindr and Pony AI[10] - The company completed significant asset restructuring in 2021, including the acquisition of Opera Limited and partial equity purchases in Star Group Interactive Inc. and Beijing Xingzhi Technology Co., Ltd.[22] - The company acquired a 55.59% stake in Opera Limited for $80,145,000 and purchased Yoyo Games for $9,500,000, achieving 100% ownership[75] - The company agreed to acquire 60.65% equity in Star X for a total transaction price of RMB 1,394,838,711, to be paid in USD[196] Risk Management - The company faces risks from intensified market competition, requiring continuous innovation and differentiated development strategies[6] - The company is enhancing its investment decision-making processes and post-investment management to mitigate risks associated with underperforming investment projects[10] - The company is committed to closely monitoring the operational status of invested companies and industry trends to manage investment risks effectively[10] - The company is enhancing its awareness of foreign exchange risk prevention and closely monitoring trends in international foreign exchange markets[10] Governance and Management - The company emphasizes the importance of retaining core management and technical talent to ensure sustainable growth and competitive advantage[9] - The company's overall development strategy and goals are overseen by the board, with business line CEOs responsible for execution to ensure orderly business development[11] - The company has a diverse board with members serving in various other technology firms, indicating a broad industry influence[140][141] - The company maintains a policy of aligning executive compensation with industry standards to attract and retain talent[142] Employee and Training Initiatives - The company conducted multiple internal training sessions to enhance employee skills and knowledge[157] - The total number of employees at the end of the reporting period was 1,771, with 1,270 in technical roles[156] - The company’s employee training programs included management skills and corporate culture[157] Shareholder and Financial Policies - The company reported a cash dividend of 0.66 RMB per 10 shares (including tax) based on a base of 1,174,543,704 shares, with no bonus shares issued[11] - The cash dividend accounted for 100% of the total profit distribution[161] - The company held three temporary shareholder meetings in 2021, with investor participation rates of 4.26%, 16.09%, and 15.31% respectively[126] - The company approved the shareholder return plan for the next three years (2021-2023) during the board meeting[147] Compliance and Legal Matters - The company confirmed that it has not engaged in any stock trading related to the transaction prior to the disclosure of the plan[183] - The company has not faced any public reprimands from the stock exchange in the last twelve months[182] - The company guarantees that all information provided for the transaction is true, accurate, and complete, with no false records or misleading statements[180] - The company has fulfilled all legal disclosure obligations and has no undisclosed contracts or agreements[181]