2019 Semi-Annual Report

Key insights

6 takeaways

01
Operating income rose 83.83% to RMB 6.071 billion, with mobile game income up 152.90% while browser game income fell 29.20%.See it on page 20
02
Net profit attributable to listed company shareholders reached RMB 1,033,074,405.38, a 28.91% increase year on year.See it on page 7
03
Net cash flow from operating activities fell 36.93% to RMB 616,354,936.37, which the company attributes partly to accounts receivable growth and renegotiated transaction periods.See it on page 21
04
Selling expenses increased 217.63% to RMB 3,632,067,521.84, with the company citing large Internet traffic requirements for newly launched games.See it on page 20
05
The company reported that its domestic mobile game market share rose to 10.02% during the reporting period.See it on page 16
06
Control of the company changed to Li Weiwei on April 8th, 2019, after seven directors nominated by Li Weiwei were elected to the Board.See it on page 7

Summary

This is the 2019 semi-annual report of Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd., a Shenzhen Stock Exchange-listed company (stock code 002555) engaged in the development, distribution and operation of mobile and browser games, covering the reporting period from January 1st to June 30th, 2019. The document presents consolidated financial statements, key financial indicators, business segment data, investment details, shareholder information and related-party disclosures. Operating income for the first half of 2019 was RMB 6,070,957,503.06, up 83.83% year on year, and net profit attributable to listed company shareholders was RMB 1,033,074,405.38, up 28.91%. The company attributes the growth mainly to a 152.90% increase in mobile game income, which reached RMB 5,426,572,514.55, while browser game income fell 29.20% to RMB 644,384,988.51. Net cash flows from operating activities declined 36.93% to RMB 616,354,936.37, which the company links partly to renegotiated transaction periods with major traffic service providers. Selling expenses rose 217.63% to RMB 3,632,067,521.84, mainly due to Internet traffic fees associated with new game launches. The company's R&D expense was RMB 318,493,874.16 under the investment-in-R&D line, up 22.74%. The report also records a change of controlling shareholder to Li Weiwei on April 8th, 2019.