Kunlun(SZ:300418)2016-08-24 16:00Financial Performance - Total revenue for the first half of 2016 reached ¥1,225,779,517.88, representing a 38.31% increase compared to ¥886,244,200.87 in the same period last year[17]. - Net profit attributable to ordinary shareholders was ¥243,958,758.28, up 25.22% from ¥194,825,145.94 year-on-year[17]. - Net cash flow from operating activities improved significantly to ¥74,453,134.35, a 182.33% increase from a negative cash flow of ¥90,428,016.60 in the previous year[17]. - Basic earnings per share decreased by 68.57% to ¥0.22 from ¥0.70 in the same period last year[17]. - The net profit after deducting non-recurring gains and losses was ¥207,390,836.21, reflecting a 31.67% increase from ¥157,512,001.86 year-on-year[17]. - The total equity attributable to ordinary shareholders was ¥2,810,193,072.20, a 4.86% increase from ¥2,680,018,953.91 at the end of the previous year[17]. - The company reported a diluted earnings per share of ¥0.2164 based on the latest total share capital of 1,127,152,504 shares[18]. - The company's operating profit for the same period was CNY 240,457,656.42, an increase of 26.78% year-on-year[34]. - The company reported a 490.85% increase in investment income, amounting to approximately ¥184.73 million, driven by gains from the disposal of equity interests in investee companies[41]. Assets and Liabilities - Total assets increased by 43.33% to ¥5,573,441,212.69 from ¥3,888,484,313.92 at the end of the previous year[17]. - The total liabilities reached CNY 2,750,920,449.22, compared to CNY 1,208,465,360.01 at the beginning of the period, indicating a rise of approximately 128%[200]. - The company's total equity was CNY 2,822,520,763.47, showing a significant increase from the previous period[200]. - The company's current assets totaled CNY 2,493,890,822.92, up from CNY 1,859,802,376.27 at the start of the period, reflecting a growth of approximately 34%[199]. - The non-current assets totaled CNY 3,079,550,389.77, an increase from CNY 2,028,681,937.65, marking a growth of about 52%[199]. Market and User Growth - Monthly active users across the company's platforms increased to 72 million, a quarter-on-quarter growth of 16.13%[34]. - The gaming business generated revenue of CNY 1,049,095,784.02, marking a year-on-year increase of 19.71%[34]. - The mobile gaming market in China generated revenue of 37.48 billion RMB in the first half of 2016, representing a year-on-year growth of 79.1%[47]. - The self-developed ARPG mobile game "Wushuang Sword Girl" has accumulated over 11 million users globally across various localized language versions, with significant popularity in South America and emerging markets like Russia and Turkey[35]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company is focusing on developing high-quality mobile IP games and enhancing its global distribution network[34]. - The company plans to continue upgrading its business strategy to build an international new media and digital entertainment platform[34]. - The company has begun consolidating the Grindr business, which is expected to impact revenue and operational strategy moving forward[49]. - The company is actively monitoring investment projects to mitigate the risk of underperformance in a competitive internet market[30]. Acquisitions and Investments - The company acquired a 60% stake in the US social product Grindr for $93 million, enhancing its user base in the international market, particularly in Europe and the US[40]. - The company completed the acquisition of 60% equity in Grindr LLC for a total investment of RMB 602,675,556.73, with the transaction finalized in March 2016[104]. - The company completed the investment in the internet finance asset acquisition project, utilizing RMB 297,128,748.04 of the raised funds[78]. - The company recognized an investment income of 32,880,475.43 yuan from the sale of 5% of its stake in Yinker Inc in June 2016[81]. Risk Management - The company faces risks from intensified market competition, necessitating continuous innovation and targeted market strategies[63]. - The company has a risk management strategy in place to address potential regulatory changes in both domestic and international markets[62]. - The company has implemented risk management measures for its derivative investments to mitigate market, liquidity, and credit risks[90]. - The company’s risk management system covers all key aspects, including prevention, monitoring, and post-processing[90]. Shareholder and Governance - The company plans to repurchase shares under the condition that it does not lead to a non-compliance with listing requirements, requiring approval from two-thirds of shareholders[133]. - The company will announce the repurchase plan within 2 trading days after the board resolution, detailing the number of shares, price range, and completion time[137]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[187]. - The largest shareholder, Zhou Yahui, holds 35.09% of the shares, totaling 395,562,758 shares[184]. Legal Matters - The company is involved in a lawsuit with a claimed amount of RMB 100 million, with no expected liabilities recorded[97]. - The lawsuit alleges copyright infringement and unfair competition related to the game "Wuxia Q Chuan" and seeks various forms of compensation including a public apology and damages totaling RMB 14,499,176.66[98]. - The company is actively pursuing legal actions to protect its interests against claims from Beijing Huogu Network Technology[144].