Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. Summary of 2018 Semi-Annual Report

Key insights

6 takeaways

01
Mobile game operating revenue reached RMB 2,145,744,221.56 in the half-year, up 39.10% year on year, out of total operating income of RMB 3,302,496,146.77.See it on page 13
02
Consolidated operating income rose 7.24% year on year, while net income attributable to shareholders of the listed company fell 5.78%.See it on page 4
03
The decline in attributable net income is attributed by the company mainly to prior-year equity disposal income of RMB 167 million, with no significant equity disposal in the current period.See it on page 7
04
Browser game operating revenue was RMB 910 million, a slight drop year on year, which the company attributes mainly to users shifting to mobile clients and a reduction in browser game products.See it on page 12
05
The company expects its domestic mobile game gross billing to be RMB 2.2 billion to RMB 2.7 billion in the third quarter, as of the report date.See it on page 7
06
The company proposed a cash dividend of RMB 1.00 (tax inclusive) per 10 shares, based on total shares of 2,124,870,253.See it on page 6

Summary

Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd., a Shenzhen Stock Exchange-listed company (stock code 002555), reports its 2018 semi-annual results for January 1 to June 30, 2018. The company is engaged in cultural and creative business, including R&D, publishing and operation of mobile and browser games, and in manufacturing and sales of plastic fuel tanks for automobiles. Figures in the financial statements are denominated in Renminbi.

Operating income was RMB 3,302,496,146.77, up 7.24% year on year, while net income attributable to shareholders of the listed company was RMB 801,378,948.23, down 5.78%. Net income attributable to shareholders of the listed company after deduction of non-recurring profit and loss rose 0.32% to RMB 761,182,531.85. Net cash flow from operating activities fell 10.91% to RMB 977,236,017.96.

Mobile game operating revenue was RMB 2,145,744,221.56, up 39.10%, while browser game operating revenue was RMB 910,103,611.46, down 24.95%. The company said the net income decline mainly reflected prior-year equity disposal gains that did not recur in the current period.

The company expects domestic mobile game gross billing of RMB 2.2 billion to RMB 2.7 billion in the third quarter. The company also reports a 2018 first-quarter iResearch ranking of third among listed game companies in China's mobile game market.