G-bits(603444)2022-11-19 03:22Business Strategy and Development - The company plans to maintain a rapid iteration approach to identify excellent design models and improve R&D capabilities over the next three years [1] - There is no specific target for domestic market share growth, with the focus remaining on product quality and R&D improvement [2] - Overseas market competition is considered equally intense as the domestic market, with no specific regional focus for product development [2] Product Development and Market Positioning - The company prioritizes gameplay over graphics, with investments in art and programming made after confirming enjoyable gameplay [3] - No plans to develop anti-depression games targeting elderly players, as it falls outside the company's expertise [3] - The pet food project has mostly completed staffing but remains uncertain [3] - The game "Alchemy Demon King" is still in development and has not yet applied for a license [4] - The "Thunder Village" app serves as an extension of in-game functions, with no specific operational data disclosed [4] Financial Performance and Investment - The company's net profit margin has slightly declined due to lower gross margins from new products like "One Thought of Freedom" and "Ghost Valley Eight Desolations" [6] - External investments primarily target upstream and downstream companies in the gaming industry, accounting for over 10% of total assets [5] - Q1 investment income decreased mainly due to reduced equity in Qingci Digital and losses from early-stage investment projects [5] - Revenue from collaborations like "One Thought of Freedom" and "Mortal Cultivation Biography" is recorded under sales expenses [5] Human Resources and Incentives - Employee turnover, especially among R&D staff, has remained at industry average levels over the past three years [4] - The majority of stock incentive costs were accrued in 2021, with employees having the right to abandon incentives if the exercise price exceeds market value [7][8] Market and Investor Relations - The company maintains an open communication channel with investors and institutions, despite observed stock price drops following institutional research [9] - No specific plans for stock splits or buybacks, with decisions based on careful evaluation [8][9] - The company focuses on improving fundamentals rather than directly influencing stock price movements [9][10] Future Outlook and Encouragement - The company remains committed to steady operations and continuous improvement, with confidence in long-term development [10]