Kunlun(SZ:300418)2016-10-26 16:00Financial Performance - Total assets increased by 53.49% to CNY 5,968,397,303.38 compared to the end of the previous year[7]. - Net profit attributable to shareholders increased by 268.75% to CNY 248,927,250.80 for the current period[7]. - Total operating revenue for the current period was CNY 618,734,924.53, up 46.89% year-on-year[7]. - The net cash flow from operating activities increased by 690.74% to CNY 135,693,449.31 year-to-date[7]. - Basic earnings per share decreased by 4.17% to CNY 0.23 for the current period[7]. - The weighted average return on equity increased to 8.48%, up from 5.75% in the previous year[7]. - The company achieved operating revenue of CNY 1,844,514,442.41 for the first three quarters of 2016, a year-on-year increase of 41.08%, primarily due to revenue growth and the consolidation of Grindr's business[27]. - The net profit attributable to shareholders for Q3 2016 was CNY 248,927,250.80, representing a year-on-year growth of 268.75%[30]. - Revenue for the third quarter reached 1.2 billion RMB, representing a 15% increase compared to the previous quarter[49]. - The company reported a net profit of RMB 405,288,398.77 for the year 2015, with a distributable profit of RMB 132,717,681.44[86]. Market Expansion and Strategy - The company plans to expand into overseas markets, having established subsidiaries in countries such as Hong Kong, Japan, and the United States[15]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by the end of 2017[50]. - The company plans to launch several new games, including "BLEACH" and "Terminator 2," with expected release dates in 2017[35]. - The company has adjusted its non-public offering plan, reducing the total fundraising amount to CNY 600 million, focusing on the 1Mobile offline mobile distribution channel project[34]. - A strategic acquisition of a local tech firm is anticipated to be finalized by Q4 2016, expected to boost overall capabilities[49]. Risks and Challenges - The company faces risks from intensified market competition and regulatory changes in the internet industry[10][11]. - The company is actively monitoring foreign exchange risks due to its significant overseas revenue[15]. - The company is closely monitoring the operational status of its investment and acquisition targets to mitigate performance risks[16]. - The company has reported no major risks or difficulties that would adversely affect future operations[38]. Governance and Management - The company is expanding its governance structure to manage the complexities arising from its growing scale, ensuring effective execution of business plans[17]. - The company aims to enhance its governance level and establish more effective operational mechanisms to address management challenges[17]. - The company emphasizes the importance of retaining core management and technical talent to sustain growth[13]. - The company is committed to maintaining its operational independence and protecting shareholder interests[43]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 84,442, with the top 10 shareholders holding significant stakes[19]. - The largest shareholder, Zhou Yahui, holds 35.09% of the shares, amounting to 395,562,758 shares, which are pledged[19]. - Beijing Yingrui Century Software R&D Center holds 17.78% of the shares, totaling 200,408,085 shares, also pledged[19]. - The report indicates that there were no agreed repurchase transactions among the top shareholders during the reporting period[21]. Cash Flow and Investments - The company reported a significant increase in short-term borrowings, rising by 204.25% to CNY 753,992,289.10, mainly due to increased bank loans[27]. - Investment income surged by 735.93% to CNY 432,460,593.57, mainly from the disposal of equity in invested companies[28]. - The company’s cash flow from operating activities increased by 690.74% to CNY 135,693,449.31, attributed to revenue growth[29]. - The company is participating in a consortium to acquire 100% of Opera Software AS for a total transaction price of $600 million, with its contribution being $200 million[77]. Share Repurchase and Dividend Policy - The company plans to implement share repurchase measures to stabilize stock prices, contingent upon specific triggering conditions being met[52]. - The share repurchase will not exceed the total amount raised from the initial public offering (IPO) and will be subject to shareholder approval[59]. - The company is committed to maintaining a dividend payout ratio of 30% of net profits for the fiscal year[48]. - The company commits to maintaining a stable cash dividend policy, ensuring that the cash dividend per share will not be lower than the level of the previous year if the basic earnings per share or net asset return rate falls below the level before listing[66].