2018 Annual Report

Key insights

6 takeaways

01
Consolidated net profit attributable to shareholders fell 37.77% in 2018, while the company's non-GAAP net profit rose 6.56%. The company attributes the reported decline mainly to Shanghai Mokun's performance and goodwill impairment.See it on page 13
02
Mobile game operating income grew 69.99% to RMB 5,581,764,190.33, while browser game income fell 28.40% to RMB 1,645,957,054.96.See it on page 24
03
The net profit attributable to listed company shareholders in the fourth quarter was RMB -209,845,149.80, mainly due to the Company's provision of RMB 959,833,685.66 set aside for Shanghai Mokun's goodwill impairment loss.See it on page 11
04
Selling and distribution expenses increased 75.41% to RMB 3,347,261,308.33, with the report linking the rise mainly to a large increase in mobile game internet traffic expenses.See it on page 29
05
The company reported that its mobile game market share in China increased to 6.48% during the reporting period.See it on page 18
06
Operating income for 2018 totalled RMB 7,632,679,668.47, with 87.86% from domestic sales and 12.14% from overseas sales.See it on page 24

Summary

This is the 2018 Annual Report of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (Sanqi Interactive Entertainment), a Shenzhen Stock Exchange-listed company (stock code 002555), covering the reporting period from January 1st to December 31st, 2018. The company's audit institution is GP Certified Public Accountants Co., Ltd. (Special General Partnership), and during the reporting period its main businesses included the development, distribution and operation of mobile games and browser games. Consolidated operating income for 2018 was RMB 7,632,679,668.47, up 23.33% year on year, while net profit attributable to listed company shareholders was RMB 1,008,503,357.80, down 37.77%. The company attributes the decline mainly to performance compensation income and goodwill impairment recognized for its subsidiary Shanghai Mokun, which the report says decreased net profit attributable to the listed company shareholders by RMB 506 million. Non-GAAP net profit, which the company uses as a complementary measure, was RMB 1,501,161,065.93, up 6.56%. Mobile game operating income reached RMB 5,581,764,190.33, up 69.99%, while browser game income was RMB 1,645,957,054.96, down 28.40%. Domestic revenue was RMB 6,705,946,316.22 and overseas revenue RMB 926,733,352.25. Selling and distribution expenses rose 75.41% to RMB 3,347,261,308.33, which the report links mainly to increased internet traffic expenses for mobile games.