37 Interactive Entertainment Network
Technology Group Co., Ltd.
2024 Interim Report
August 2024
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of 37 Interactive Entertainment Network Technology GroupCo., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the truthfulness, accuracyand completeness of the contents of this Report, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.Xu Zhigao, the Company’s legal representative, and Ye Wei, the Company’s Chief FinancialOfficer & Board Secretary, hereby guarantee that the financial statements carried in this Reportare truthful, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report.Any plans, development strategies and other forward-looking statements in this Reportshall not be deemed as earnings forecasts or promises to investors. Investors and otherstakeholders shall be fully aware of the risk and understand the difference between plans,forecasts and promises.Possible risks facing the Company and countermeasures have been detailed in “VII RisksFacing the Company and Countermeasures” under “Part III Management Discussion andAnalysis” herein, which investors are kindly reminded to pay attention to.The Company is subject to the disclosure requirements for listed companies engaged insoftware and IT services.The Board has approved an interim dividend plan as follows: based on the total issuedshare capital (exclusive of shares in the Company’s account for repurchased shares) on the dateof record, a cash dividend of RMB 2.10 (tax inclusive) per 10 shares is planned to be distributedto all the shareholders of the Company, with no bonus issue from either profit or capitalreserves.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 4
Part III Management Discussion and Analysis ...... 6
Part IV Corporate Governance ...... 25
Part V Environmental and Social Responsibility ...... 28
Part VI Share Changes and Shareholder Information ...... 30
Part VII Financial Statements ...... 37
Part II Corporate Information and Key Financial Information
I Corporate Information
| Stock name | 37 Interactive Entertainment | Stock code | 002555 |
| Place of listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 三七互娱网络科技集团股份有限公司 | ||
| Abbr. (if any) | 三七互娱 | ||
| Company name in English (if any) | 37 INTERACTIVE ENTERTAINMENT NETWORK TECHNOLOGY GROUP CO.,LTD. | ||
| Legal representative | Xu Zhigao | ||
II Contact Information
| Board Secretary | Securities Affairs Representative | |
| Name | Ye Wei | Wang Sijie |
| Office address | Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang Road, Wuhu City, Anhui Province | Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang Road, Wuhu City, Anhui Province |
| Tel. | 0553-7653737 | 0553-7653737 |
| Fax | 0553-7653737 | 0553-7653737 |
| Email address | ir@37.com | ir@37.com |
III Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes ? No
| H1 2024 | H1 2023 | Change (%) | |
| Operating revenue (RMB) | 9,231,969,089.44 | 7,760,573,887.29 | 18.96% |
| Net profit attributable to the Listed Company’s shareholders (RMB) | 1,264,633,578.95 | 1,226,061,335.07 | 3.15% |
| Net profit attributable to the Listed Company’s shareholders after deducting non-recurring profits and losses (RMB) | 1,274,632,666.86 | 1,115,491,118.74 | 14.27% |
| Net cash flows from operating activities (RMB) | 2,129,183,514.99 | 2,319,957,176.41 | -8.22% |
| Basic earnings per share (RMB/share) | 0.57 | 0.55 | 3.64% |
| Diluted earnings per share (RMB/share) | 0.57 | 0.55 | 3.64% |
| Weighted average return on equity (%) | 9.68% | 9.54% | 0.14% |
| 30 June 2024 | 31 December 2023 | Change (%) | |
| Total assets (RMB) | 19,331,593,556.82 | 19,134,551,079.36 | 1.03% |
| Equity attributable to the Listed Company’s shareholders (RMB) | 12,645,288,955.19 | 12,706,945,475.87 | -0.49% |
IV Accounting Data Differences under China’s Accounting Standards for Business Enterprises(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable ? Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.V Non-recurring profits and losses
? Applicable □ Not applicable
Unit: RMB
| Items | Amount | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -4,556,239.36 | |
| Government grants recognised in profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 27,618,921.23 | Mainly due to government grants other than the rebates of value-added tax |
| Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial enterprise, as well as on disposal of financial assets and liabilities (exclusive of the effective portion of hedges that is related to the Company's normal business operations) | -20,386,773.03 | |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 1,400,456.40 | |
| Non-operating income and expenses other than the above | -3,189,306.89 | |
| Less: Income tax effects | 10,874,541.52 | |
| Non-controlling interests effects (net of tax) | 11,604.74 | |
| Total | -9,999,087.91 |
Particulars about other gains and losses that meet the definition of non-recurring profits and losses:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent a non-recurring profits and losses item listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profits andLosses Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Part III Management Discussion and Analysis
I Principal Operations of the Company in the Reporting Period(I) Industry review
1. Industry information
In 2024, according to the China’s Game Industry Report from January to June 2024 (hereinafter referred to as the “Report”)released by the Game Publishing Committee of China Audio-video and Digital Publishing Association (CADPA), China’s gameindustry maintained steady growth in the first half of this year. The actual sales revenue of China’s game market was RMB147.267billion, a year-over-year (YoY) increase of 2.08%. During the same period, there were 674 million game players in China, with aYoY increase of 0.88%, hitting a new record high.In overseas markets, in the first half of this year, the actual sales revenue of China’s self-developed games was USD8.554billion, up 4.24% YoY. The US, Japan and South Korea remained the major overseas markets for China’s mobile games, accountingfor 33%, 15.66% and 8.82%, respectively, totalling 57.48%.Among the top 100 self-developed mobile games by overseas revenue, strategy games continued to dominate, making up
32.66% of the total, while simulation games experienced an increase from 5.28% last year to 9.97% this year. At the same time,multiplayer online battle arena (MOBA) games represented 9.07%, higher than last year’s 3.83%. Incremental games also saw arise from 3.95% to 7.5%. These three categories showed notable revenue growth. In contrast, the share of role-playing games(RPGs) dropped substantially to 10.48%.
Furthermore, global users’ behaviours and preferences become more fragmented in 2024, making lightweight games amajor trend in the global game industry. In China, the number of applet games has surged, offering a variety of genres, themes,and gameplay to meet players’ demands for lighter and more diverse forms of entertainment. This has injected new vitality intothe game industry. According to the Report, in the first half of 2024, applet mobile games recorded RMB16.603 billion in revenue,marking a 60.5% YoY increase.
2. Changes in the industry’s policy environment and their impact on the Company
In August 2024, the State Council issued the Guideline on Boosting High-quality Development of Service Consumption(hereinafter referred to as the “Guideline”). The Guideline outlined several key tasks aimed at boosting the vitality of life-enhancing consumption, including cultural and entertainment consumption. Furthermore, the Guideline calls for more efforts to“improve the quality of online literature, online performances, online games, radio and television programmes, and onlineaudiovisual services” and “encourage the development of new business formats such as immersive experiences, script-basedentertainment, digital art, and online performance live-streaming”. These initiatives are expected to further boost high-qualitydevelopment in the industry.
In July 2024, the Third Plenary Session of the Twentieth Central Committee of the Communist Party of China approved theDecision of the Central Committee of the Communist Party of China on Further Deepening Reforms in a Comprehensive Way andPromoting Chinese-Style Modernisation, which put forward further requirements for improving the systems and mechanisms forpromoting high-quality economic development and deepening the reform of the cultural system.
In March 2024, the State Council unveiled the Regulation on the Implementation of the Law of the People’s Republic ofChina on the Protection of Consumer Rights and Interests. This regulation further refines and adjusts the provisions regardingconsumer rights and interests, business obligations, and penalties based on the Law of the People’s Republic of China on theProtection of Consumer Rights and Interests. The Company attaches great importance to compliance in both game operations
and promotional activities. By continuously improving its internal systems for content compliance and risk control, the Companysafeguards consumers’ rights and interests and strictly prevents risks. The Company has stringent review processes in place foruser rights and interests protection, account management, personal data protection, identification and handling. Additionally, theCompany has established a dedicated customer service portal for complaints on its website. This has enabled quick and timelyhandling of user complaints, provision of necessary protection and assistance services, and reporting to relevant authorities.In terms of protection for minors, apart from implementing the real-name authentication system and anti-addictionrequirements required by competent authorities, the Company has strengthened protection for minors by consistently improvingand upgrading its protection system for minors. We have always advanced various tasks in a proactive and positive manner toensure minors are well-protected in cyberspace. The Company has rolled out an upgraded version of the "real-name registrationand anti-addiction system for minors" for our proprietary platforms. Additionally, we have optimised the logo and wording of the"age-appropriate prompt". Meanwhile, the Company has refined and upgraded our "Parent Monitoring Platform", optimised ourcustomer service procedures, and aided guardians in queries and verification, all aimed at creating a clean and healthycyberspace for minors.The game industry continues to enhance the guiding role of online games in disseminating positive values and upliftingcontent and drive healthy and orderly development. Against this background, the unswerving pursuit of boutique, premium, andhealthy products in the industry has led to a constant stream of exceptional works, substantially contributing to the preservationand promotion of traditional Chinese culture.In response to national policies, the Company has earnestly implemented management requirements. On one hand, itdelved into the essence of traditional culture in game R&D and operational strategies. And it has sought to integrate culturalsignificance into player experiences and apply innovative technologies. On the other hand, the Company continuously excavatedhistorical and cultural resources, hoping to showcase the beauty of Chinese traditional culture in an integrated way through"Games+", thereby enabling mutual empowerment of both cultural and industrial values. For example, the Companyincorporated Peking opera facial makeup, Cantonese culture, and the ancient Maritime Silk Road into its globally published gameTrading Legend (叫我大掌柜), helping overseas players gain a deeper understanding of Chinese culture. Furthermore, it activelyexplored the "Games+" integrated development model of "technology + cultural tourism". The Company has launched the “CityWalk Programme” with an innovative model that combines the virtual character "CongMei" and real-world cultural tourismscenarios to facilitate the promotion of cultural tourism in cities such as Guangzhou and Wuhu. The ultimate goal is to advancethe digital promotion and preservation of traditional culture and new consumer scenarios of cultural tourism in the new era.The Company adheres to technology-driven innovation, closely follows the latest trends in scientific and technologicalinnovation, and explores the potential for deep integration of AI and other emerging technologies with the Company's business.Also, it improves work efficiency and promotes organic innovation capabilities. At the same time, focusing on promoting the cross-industry integration of game technologies, the Company launched a series of popular science games with rich themes coveringmedicine, traditional Chinese medicine, aerospace, intangible cultural heritage, and more to maximise the positive social impact ofgames by leveraging the unique interactivity and vividness of games. In this July, the Company’s aerospace-themed educationalgame Fei Tian Meng Xiang Qi Hang (飞天梦想启航) was awarded the “Best Innovative Social Value Award” at the 4th China GameInnovation Competition for its creative and engaging presentation of aerospace science.During the Reporting Period, leveraging its business strengths and early arrangements in artificial intelligence (AI), theCompany played a significant role in drafting the association standard—Compliance Guidelines for Data Application of GenerativeArtificial Intelligence. This standard offers companies a valuable reference for their compliant application of generative AI, helpingto enhance their data security capabilities.The Company has remained focused on its core business and deepened its "integration of R&D and operation" strategy. Wehave continued to enhance our capability of producing quality games, solidify our core competitive edge in overseas expansion,
and explore possibilities of integrating technology into our business by leveraging resources both within and outside the technologydomain. With steady strides, we have advanced high-quality and sustainable business development, dedicated to offering thepublic a wealth of premium cultural content.(II) The Company’s principal operations and products
The Company specializes in the development and publishing of games for global players, with the excellent game developmentbrand “Three Seven Games”, as well as professional game publishing brands “37Mobile”, “37GAMES” and “37Online”. TheCompany precisely grasped the industry development trends, made continuous improvements in operation, and remained a topperformer in the industry, while adhering to the "boutiqueization, diversification and globalization" strategy. For the ReportingPeriod, the Company recorded operating revenue of RMB 9.232 billion, a YoY increase of 18.96%, and a net profit attributable to itsshareholders after deducting non-recurring profits and losses of RMB 1.275 billion, a YoY increase of 14.27%. The Company'sbusiness development has accelerated significantly.
1. Continuously enhancing the long-term operation of diverse products
In response to industry trends, the Company has consistently adhered to the "diversification" strategy, understanding thedemands of diverse user bases and continuously expanding its user base. By tapping into new markets and nurturing new growthdrivers, we have continuously pushed back the boundaries of our game genres. In addition to delving into the existing fourprimary genres: Massive multiplayer online role playing games (MMORPGs), strategy games, gacha games, and businesssimulation games, we have developed games where RPG, casual, and puzzle elements are incorporated. These diverse andlightweight games have diversified player experiences.
During the Reporting Report, the Company celebrated the third anniversary of its self-developed card mobile game The SoulLand: Hun Shi Dui Jue (斗罗大陆：魂师对决). To mark that special occasion, the Company introduced new soul masters andgameplay revolving around the “Tang San’s Journey to Becoming a God” storyline in the original work. This update evoked asense of nostalgia among users for the IP, increasing the number of the game’s daily active users and prolonging the product lifecycle.
Regarding the mobile game Fan Ren Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇), the Company launched itsanniversary version in mid-2024, which featured new content of the Immortality Chapter and was published using a trafficmanagement-centric approach. This has not only helped the Company expand its active user base but has also allowed it tocontinuously improve the game’s ecosystem and enrich players’ experiences. The game has thus become a flagship product in theCompany’s cultivation-themed massively multiplayer online role-playing game (MMORPG) lineup.
Trading Legend (叫我大掌柜), a Chinese-style simulation mobile game of the Company, has successfully converted newplayers through an engaging and nostalgic marketing approach and intellectual property (IP) collaborations. By creating a long-
| Three Seven Games (game development) | 37Mobile (publishing of mobile games) | 37GAMES (overseas publishing) | 37Online (publishing of mobile & browser games) |
37 Interactive Entertainment
term ecosystem with a focus on user interactions, this game has consistently sparked a boom. On the game’s third anniversary, a“palace version” featuring ancient palace elements was released. In this version, players role-play as minor palace characters andclimb the ranks. This version has helped the Company expand its user base and prolong the game’s life cycle, furtherdemonstrating the Company’s capability of long-term operation.
We adopted an innovative marketing approach combined with top-tier celebrity endorsements for Ba Ye (霸业), one of ourself-developed strategy mobile games on the theme of the Three Kingdoms. With a constant stream of creative materials, thisgame saw a growing player base, helping the Company stabilise the structure of its strategy game portfolio.
During the Reporting Period, the Company released the anniversary version of its Chinese-style fun cultivation game XunDao Da Qian (寻道大千). Combining teamwork-based social interaction with strategy gameplay, this version featured deepenedcontent and increased engagement, enhancing user stickiness. This version also saw an in-depth collaboration between the gameXun Dao Da Qian (寻道大千) and other popular IPs, such as the novels Soul Land and A Record of a Mortal’s Journey toImmortality, and the animated movie Ne Zha. The differentiated content and customised integration have offered playersimmersive experiences and new unique gameplay. As a result, the game achieved long-term operation through brandempowerment and social interaction, and helped the Company garner leading experience in the mini-game domain.
Through the deconstruction of IP content and the innovative fusion of mini-game play, Ling Hun Xu Zhang (灵魂序章), theself-developed game based on the Soul Land IP, has displayed robust potential since its launch, further reinforcing the Company'scompetitive edge in the mini-game industry.
Regarding the 3D realistic ant-themed strategy mobile game, Underground Kingdom (小小蚁国), the Company hascontinuously optimised its mechanics to help players gather resources more efficiently and make the overall gaming experiencemore seamless. This optimisation has reduced the daily quest burden on players, improved long-term player retention, andensured steady operations.
In August 2024, the modern-themed simulation mobile game Shi Guang Za Huo Dian (时光杂货店) was published by theCompany as the agent. Fully recreating the 1990s, the game offers players a chance to relive childhood memories. To ensurebetter immersive experiences for players, the Company forged collaborations between the game and popular film and TVproductions. This has further enhanced the Company’s edge in publishing and operating business simulation games.
The Company consistently adheres to long-term operation, providing players with meticulous and comprehensive long-termservices. It deeply integrates the highlights of its intellectual property (IP) to continuously innovate in terms of reflow methodsand activities, consistently prolonging the product life cycle and igniting product vitality. During the Reporting Period, the highestmonthly gross billing of the Company’s globally published mobile games exceeded RMB 2.3 billion. Games such as Puzzles &Survival, Trading Legend (叫我大掌柜), and The Soul Land: Hun Shi Dui Jue (斗罗大陆：魂师对决), which have been launchedfor over three years, continued to perform well, demonstrating the Company’s strong capabilities of long-term game operation.
2. Continuously exploring global market opportunities
During the Reporting Period, the Company achieved overseas operating revenue of RMB 2.898 billion. The Company,drawing upon its years of experience in overseas expansion, has continuously explored its overseas markets in line with the"tailored games" strategy. We have consolidated our strengths in sectors such as MMORPGs, strategy games, gacha games, andbusiness simulation games, and opened up opportunities in the casual game market, thereby boosting the steady growth of ouroverseas business.
Puzzles & Survival, a phenomenal product launched overseas by the Company, integrates "Match-3 gameplay + SLG". Itdemonstrates the continuous efforts made by the Company to explore the in-depth integration of creative elements and games.This game has become a benchmark for long-term operation within the Company. For example, the “Volcano Journey” versionreleased this year took players on a thrilling escape adventure using the design of volcanic eruptions and crises, leading to
increased player satisfaction for this version. Since its release in 2020, Puzzles & Survival has generated over RMB10 billion ingross billing, consistently ranked among Japan’s top ten bestsellers and the top 30 in Europe and the US.The ant-themed game Ant Legion aims to represent a realistic and detailed insect world. By delving into player demandsthrough preliminary research and considering the R&D and operational capacity, the Company has developed an immersive, antworld-themed version. In this version, players build ant colonies, fend off predators, and lead their ant armies to conquer thechallenging natural environment, securing victories one after another. These continuous breakthroughs have led to a steady risein player satisfaction.During the Reporting Period, the Company continued to explore player preferences and market trends within the strategygame genre to iterate high-quality products through theme diversification and gameplay differentiation. For example, as aniteration of Puzzles & Survival, Puzzles & Chaos integrates “Match-3 gameplay + SLG” while retaining the core experiences ofPuzzles & Survival. Compared to its predecessor, Puzzles & Chaos features greatly enhanced art design and special effects. Sinceits launch, the game has consistently broken new ground in overseas markets, ranking among the top 20 strategy games indifferent regions worldwide multiple times. Likewise, in Mecha Domination, a mechanised beast-themed mobile strategy gamelaunched in Europe and the US in April this year, the highly free gameplay of beast capture and initial city-building simulationhave enhanced the sense of immersion, attracting a diverse range of players and greatly expanding the user base of traditionalstrategy games. These have earned the game a top five spot on the Google free strategy game chart in 23 countries and regionson a cumulative basis.The Company has also implemented a strategy of "lightening hardcore games and intensifying light games" to createdifferentiated competitive edges. For example,??M focuses on highlighting the core enjoyment through "simplification", thusestablishing a distinctive edge in the gaming experience. This approach has enabled the game to stand out in the fiercelycompetitive mobile MMORPG market in South Korea, contributing to sustained and robust gross billing. And this game hasbecome a flagship product in the Company's overseas MMORPG segment.The Company has deeply integrated the gameplay themes and promotional materials of its products with excellenttraditional Chinese culture. This approach creates a communication method that resonates with diverse regional, national, andaudience groups, promoting the global expression of Chinese stories. For example, the ancient-style simulation mobile gameTrading Legend (叫我大掌柜) has demonstrated the Company’s commitment to carrying forward traditional Chinese culture.During the Reporting Period, the Company initiated collaborations between the game with the classic costume drama The Legendof Zhen Huan and the Chinese comic book Fox Spirit Matchmaker. The goal is to bring distinctive gameplay to global players,giving them an immersive taste of Chinese culture. The casual incremental mobile game Xiao Yao Wen Dao (小妖问道) featuresmeticulously customised promotions in localities and thematic packaging. Through collaboration with popular fantasy IPs such asSoul Land and A Record of a Mortal’s Journey to Immortality, this game has contributed to cultural exchanges, achievedimpressive market performance, and garnered positive feedback from international players. These have laid a solid foundationfor the Company’s expansion into overseas markets of casual incremental games.
3. Building a rich product pipeline with self-developed and agency games
The Company focuses on its core gaming business. On one hand, it continuously expands the boundaries of self-development capabilities, actively expands into various categories, and develops products with a global perspective. It carefullyworks out details regarding gameplay design, art quality, music effects, etc., continues to invest in product iteration, userexperience and other aspects, and has formed professional layouts in MMORPGs, strategy games and light games. Remaining"Dedicated to Making Premium Games", it has a strong pipeline of refined self-developed mobile games. On the other hand,based on its self-developed brands, the Company consistently prioritises high-quality content as its strategic direction. Throughmulti-dimensional approaches such as investment empowerment and business support, the Company has carried out in-depthcollaborations with reputable game developers such as EyuGame and Yanqu Network. This approach has allowed the Company to
accumulate abundant external R&D reserves, which is conducive to its diversified arrangements for product supply.This year, the Company has published several new games, including Shi Guang Za Huo Dian (时光杂货店), Heroes of theThree Kingdoms: Hong Hu Ba Ye (三国群英传：鸿鹄霸业), Mecha Domination, Primal Conquest: Dino Era, and Yes YourHighness. Currently, the Company has built a portfolio of games across genres such as MMORPGs, strategy games, gacha games,and business simulation games. These games cover diverse themes, including Western fantasy, Oriental fantasy, Three Kingdoms,modern themes, and ancient themes. Among these games, several mobile games have been officially licensed in China, includingthe Chinese comic oriental fantasy MMORPG The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界), the traditional Chinese inkpainting-themed business simulation game Zhui Xu (赘婿), and the picture book-style business simulation game on a Chinesecultural theme Shi Guang Da Bao Zha (时光大爆炸). They are progressing towards launch. We hope to deliver diverse gamingexperiences to players.
Certain key games in the pipeline are presented below:
| Developer | Name of game | Game category, theme and style | Intended publishing area |
| Self-developed | The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界) | Chinese comic oriental fantasy MMORPG | Global |
| Self-developed | Code Battle Song M (代号战歌M) | Western fantasy MMORPG | Global |
| Self-developed | Code MLK (代号MLK) | Japanese Chibi-style MMORPG | Global |
| Self-developed | Code Zheng Qi SLG (代号正奇SLG) | Realistic Three Kingdoms strategy game | Global |
| Self-developed | Code Xiu Xian SLG (代号休闲SLG) | Chibi-style strategy game integrating war elements | Global |
| Self-developed | Code M1 (代号M1) | Casual game with European and American cartoon elements | Global |
| Self-developed | Code MR (代号MR) | Chibi-style RPG | Global |
| Self-developed | Code DLXD (代号DLXD) | Chibi-style fantasy RPG | Global |
| Self-developed | Code DLL (代号DLL) | Chibi-style fantasy tower defence game in the style of minimalist line art | Global |
| Agency | Zhu Shen Huang Hun: Zheng Fu (诸神黄昏：征服) | Western fantasy MMORPG | Global |
| Agency | Di Guo Yu Mo Fa (帝国与魔法) | Western fantasy strategy game | Domestic |
| Agency | Shen Yu Ji Yuan (神域纪元) | Western fantasy stat-based RPG | Domestic |
| Agency | Shang Gu Hong Huang Jue (上古洪荒决) | Oriental fantasy warfare strategy game | Domestic |
| Agency | Code Dou Shou (代号斗兽) | Giant-themed strategy game | Domestic |
| Agency | Nv Wu Shen Zhan Ji (女武神战纪) | Western fantasy gacha game | Domestic |
| Agency | Code Xiao Tie Jiang (代号小铁匠) | Japanese-style RPG | Domestic |
| Agency | Battle of Chibi 2 (赤壁之战2) | Three Kingdoms-themed strategy game | Domestic |
| Agency | Zhui Xu (赘婿) | Traditional Chinese ink painting-style business simulation game | Domestic |
| Agency | Shi Guang Da Bao Zha (时光大爆炸) | Era-advancing picture book-style business simulation game on a Chinese cultural theme | Domestic |
| Agency | Si Ji Cheng Yu Duo Mi Nuo (四季城与多米糯) | Chibi-style fantasy business simulation game | Domestic |
| Agency | Code Xiu Xian (代号休闲) | Modern resort leisure game | Overseas |
| Agency | Abyss Survivor | Fantasy cartoon-style strategy game | Overseas |
| Agency | Code Shang Tu (代号商途) | business simulation game focusing on temporal travel and business competition | Overseas |
| Agency | Bugtopia | Insect-themed strategy game | Overseas |
| Agency | Match Cozy 3D | Modern cartoon-style casual puzzle game | Overseas |
4. Bolstering R&D and operations and improving quality and efficiency using AI technologyWith the rapid advancement of technology, AI has brought limitless possibilities and profound impacts to the game industry.Embracing the application of AI in the game industry, the Company has adopted a "Three-step AI" strategy.
First, pioneering arrangements for AI applications have been made to progressively incorporate AI into various business
processes. Second, leveraging accumulated experience, the Company has striven to achieve tool- and module-baseddevelopment, thereby establishing a more automated and intelligent pipeline of game industrialisation. Third, the Company hasexplored more possibilities of enriching gameplay through AI.
In 2018, the Company made ongoing efforts to explore the application of industrialised AI in gaming. By deeply integratingcutting-edge technologies such as AI and big data into its business, the Company effectively empowered various processes,ranging from product proposal, content generation, publishing and operation to asset accumulation. This has allowed theCompany to enhance efficiency and accumulate a wealth of data and technological advantages over the years. We have bolsteredthe tool-based and module-based development of our capabilities in alignment with our business procedures, integratingdiscriminant AI and generative AI into each process of our business. This has culminated in the development of a digitalised andintelligent product portfolio that runs through our entire R&D and operational procedures. This portfolio covers platformsincluding "Zeus", "Athena", "Poseidon", "Ares", and "Cupid" on the R&D end and "Turing", "Quantum", "Destiny", and "Yi Lan" onthe ends of promotion and operations, significantly improving the industrialisation of the game R&D and operation network.
Take the "Turing" platform for example. By carrying out consistent training of its proprietary art assets garnered over theyears, the Company has experienced substantial efficiency improvements in 2D art-related tasks through AI empowerment, witha combined monthly output of over 280,000 AI-generated 2D drawings across R&D and publishing business lines. In the conceptdesign process for characters, the Company has implemented a new process of AI-generated 2D drawings, resulting in an averagesaving of 60% to 80% in working hours. And this platform can produce over 80 videos and 200 audios per week.
In terms of R&D, the Company has utilised its intelligent R&D platform "Cupid" to conduct a variety of technological studiesand applications, including AI balance testing, the translation of art materials, AI imitation learning, game Q&A assistant, naturallanguage processing (NLP) public opinion analysis, and data trend forecasting. Moreover, AI algorithms have been employed tocapture high-precision and high-performance motions, and the capture function for facial expressions has been introduced,addressing the pain points such as high costs and overly long periods typically identified with specialised traditional motion
capture equipment. This has enhanced both R&D efficiency and quality. Many of our self-developed products such as The SoulLand: Hun Shi Dui Jue (斗罗大陆：魂师对决), Ba Ye (霸业), and The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界) havebenefited from the AI-assisted stat balance testing function, resulting in improved player experiences and prolonged game lifecycles.AI technology has been deeply integrated into each business type of the Company, notably enhancing the operationalefficiency of each process. During the Reporting Period, the Company upgraded its self-developed internal AI office tool “Xiao Qi”into a smart office assistant capable of handling complex tasks. The upgraded tool has enhanced the automatic decision-makingfeatures of the Company’s digitalised and intelligent products, covering features such as search queries, graphic design,document creation, translation, customer service, data analysis, and team analysis. Used by over 90% of employees, with eachemployee using it 15 times per week on average, the tool has improved the Company’s office collaboration and overalloperational efficiency substantially.Furthermore, as to the exploration of AI's potential for enriching gameplay, the Company is wholeheartedly embracing theAI trend, continually delving into novel gameplay mechanics and experiences internally. For example, ongoing efforts are made bythe Company to research the development of an intelligent NPC system that integrates large language models, AI voice, and AImotion capture technologies. The system aims to enhance character-player interaction. Meanwhile, based on the multimodalartificial intelligence generated content (AIGC) algorithm, the Company is working to develop a platform for generating gamecommunity content (such as game fight reports, music, and videos), thereby improving the quality and efficiency of contentcreation within the game community. During the Reporting Period, the Company developed a casual tile-matching game of whichthe game plot, materials, voice-overs, music and other elements were completed by AI, and continued to explore the possibilityof producing a game completely by AI. Meanwhile, the Company is also optimising AI applications on the user experience side.This move aims to offer users a more immersive and personalised experience by integrating discriminant and generative AItechnologies with game content.
5. Empowering business innovation and sustainable development through investment
Benefiting from our pioneering strides in the exploration of AI applications, we have remained open-minded abouttransformations in industry technologies and ecosystems. Marching forwards steadily and surely, we have insisted on aprogressive layout of AI applications and continuously iterated and optimised innovative tools in better alignment with theCompany's business development requirements. Furthermore, taking into consideration the requirements of each businessprocess, we have been exploring the in-depth integration of advanced technologies and business.In recent years, the global AI technology sector has entered a new stage of development. Riding the technologicaltransformation trend, the Company advances both independent exploration and internal development. Meanwhile, the Companyfocuses its investment arrangements in such areas as foundational large models, AIGC, “AI + computility”, and interactive sensors.This approach helps the Company capture innovation opportunities for cutting-edge technologies and promote collaboration andconnection between its investment activities and principal business.The Company invests in large language models and application layers and continually explores the applicability of thesemodels to the Company’s R&D line. Specifically, the Company has, directly or indirectly, invested in leading companies such asZhipu AI, Baichuan AI, Moonshot AI, aiXcoder, DeepLang AI, Yahaha, Studio 51, and DeepMirror Technology. Supported byfoundational large models, the Company strives to unlock the potential of AIGC to empower diverse vertical scenarios.Furthermore, the Company is actively expanding into the “AI + computility” sector. To this end, it has invested in firms such asCIX, Tingyu Tech, Huixi, HYQ, and Eeasy Tech. These investments aim to build an integrated industrial chain, linking computilityinfrastructure, large language model algorithms, and AI applications.The Company continuously monitors hardware and technological advancements, with a strong focus on hard & coretechnology, and emphasises business synergy. It has invested in cultural, entertainment, and high-tech sectors, such as
computility, optical displays, extended reality (“XR”) devices, cultural and entertainment content, semiconductors and materials,spatial computing engines, AI, new sensing technology, and AIGC-based social platforms for games. The Company’s goal is toempower innovative and sustainable business growth through investments, thereby forging new competitive edges in theindustry.
(III) The Company’s principal operations and business modelsThe Company is principally engaged in the development, publishing, and operation of online games (mostly mobile andbrowser games). The business models of the Company’s online games mainly include independent operation and third-party jointoperation.
Under the independent operation mode, the Company obtains the licenses of games through independent R&D or being anoperator of other games, and publishes and operates these products through its own or third-party channels. The Company is fullyresponsible for the operation, promotion and maintenance of the games; providing unified management services for onlinepromotion, online customer service and top-up payment; and updating games along with game developers based on the real-timefeedback of users and games.Under the third-party joint operation mode, the Company cooperates with one or more game operators or game applicationplatforms to jointly operate games. And the aforesaid parties are responsible for the management of their own channels, includingoperation, promotion, the recharge and charge system, while the Company provides technical support services along with gamedevelopers.(IV) The Company’s presence on the market and primary growth drivers
Focusing on cultural and creative businesses based on the development, publishing, and operation of online games, theCompany is an excellent comprehensive entertainment provider in China’s A-stock market. It is a Key Cultural Export Company ofChina, Demonstration Base for China’s Cultural Industry, Civilized Institution in Guangdong Province, and Top 30 Cultural Enterpriseof Guangzhou, and MSCI ESG AA-rated company, among others. With “bringing joy to the world” as its mission, the Company isdedicated to becoming an excellent and sustainable entertainment provider.
During the Reporting Period, the Company steadily advanced with the development strategy of “boutiqueization,diversification and globalization”, adhered to the strategy of "dual engines at home and abroad", as well as continuously promotedhigh-quality and sustainable development.
II Core Competitiveness Analysis
The Company’s core competitiveness remained largely the same during the Reporting Period.
1. Forging ahead with determination, the team has seized market opportunities swiftly
The Company has been deeply engaged in the cultural and creative industry for many years. Its core management team isdeeply involved in the front line of business, working hard together with all the employees. Always upholding the spirit ofmarathon-like perseverance, the Company has been forging ahead with breakthroughs, as well as pursuing better financialresults and faster growth while maintaining sound operation. Over the years, the Company has demonstrated keen marketinsight, seizing emerging opportunities in the industry through a robust team of skilled professionals and scientific managementmechanisms. Anticipating the "shift from web games to mobile games" in its early stages, the Company spearheaded overseasmarket penetration over a decade ago. Presently, we remain aligned with the trend towards mini-games. Navigating numerousindustry transitions, we have achieved sustained growth. Throughout the development, the Company has consistently
emphasised talent cultivation and team building. The Company has built a high-calibre talent pool. Through a scientific talentpromotion mechanism, remuneration management system, and performance incentive scheme, the Company inspires employeemotivation and creativity. With "bringing joy to the world" as its mission, the Company is advancing towards the vision of"becoming an excellent and sustainable entertainment provider".
2. Strengths in the integration of R&D and operation have been consolidated, enriching the productportfolioThe Company has continuously advanced its strategy of "integration of R&D and operation", deepened its diversifiedproduct portfolio, and established a robust and efficient multidimensional product supply system. First, the Company hasconsistently pushed back the boundaries of its self-development capabilities, delved into core product categories, and adopted aglobal perspective to create a central supply layer with self-developed products at the core. Second, through investmentempowerment and business support, the Company has fostered deeper partnerships with numerous high-quality developersboth domestically and internationally, continuously accumulating deeply customised premium products. Third, by collaboratingwith long-term and stable developers, the Company has further refined its product offerings. Under this supply system, theCompany has built a robust product supply chain, continuously enriched the portfolio of high-quality products and drove steadybusiness growth.With the “integration of R&D and operation” model, the Company can fully combine its strengths in product R&D andoperation. This, on the one hand, facilitates a deeper understanding of the market and user demands by the R&D team, therebyincreasing the success rate of products under development. On the other, through close collaboration between R&D andoperations teams, the Company can optimise the updates and promotions of already launched products, thus effectivelyachieving long-term operation and prolonging product life cycles.
3. Publishing capabilities have been continuously iterated to facilitate long-term operation from aglobal perspective
Over the years, the Company's publishing team has successfully launched numerous quality games across diverse genres andthemes in global markets. During this journey, we have kept abreast of the latest market trends, and accordingly, innovated ourmarketing strategies. By employing various creative marketing strategies, such as collaboration with renowned IP, celebrityendorsements, and immersive storytelling, we have established a long-term ecosystem revolving around user interactions, thusfortifying robust publishing barriers and facilitating the long-term operation of multiple products. Moreover, the Company hasplaced significant emphasis on the impact of AI technology and automated production tools on the Company's business.Leveraging a wealth of data accumulated over the years, the Company has continually iterated our self-developed intelligent adand operational platforms to boost promotional efficiency and effectiveness. The Company has made comprehensivearrangements for digitalised and intelligent products on the publishing end. This has bolstered the Company's capabilities ofintelligent and sophisticated operations, allowing the Company to effectively manage marketing expenses, amplify publishingeffectiveness, and prolong product life cycles.III Analysis of Principal OperationsOverviewSee contents under the heading “I Principal Operations of the Company in the Reporting Period”.Year-over-year changes in key financial data:
Unit: RMB
| H1 2024 | H1 2023 | Change (%) | Main reason for change | |
| Operating revenue | 9,231,969,089.44 | 7,760,573,887.29 | 18.96% | The Company's mobile games, such as Xun Dao Da Qian (寻道大千), Ba Ye (霸业), and Ling Hun Xu Zhang (灵魂序章), performed well and brought about a revenue boost. |
| Cost of sales | 1,880,723,779.43 | 1,664,617,407.90 | 12.98% | Increased cost of royalties as a result of increased revenue from agency games during the Reporting Period |
| Distribution and selling expenses | 5,360,351,377.24 | 4,279,408,761.57 | 25.26% | The Company continued to increase traffic placement for games such as Xun Dao Da Qian (寻道大千), Ba Ye (霸业), Wu Ming Zhi Bei (无名之辈), and Ling Hun Xu Zhang (灵魂序章), which led to an increase in Internet traffic charges during the Reporting Period. |
| General and administrative expenses | 295,724,089.56 | 257,073,397.84 | 15.03% | Increased remunerations for the management |
| Financial expenses | -75,004,717.79 | -111,641,061.71 | 32.82% | Decreased interest income from deposits and increased exchange losses during the Reporting Period compared with the same period last year |
| Income tax expenses | 202,945,190.16 | 205,127,044.68 | -1.06% | |
| Research and development investments | 350,778,127.57 | 388,284,125.67 | -9.66% | During the Reporting Period, the Company adjusted its staffing structure according to strategic game categories, increased investment in strategic categories such as strategy games, and reduced investment in the research and development of certain non-strategic categories. |
| Net cash flows from operating activities | 2,129,183,514.99 | 2,319,957,176.41 | -8.22% | |
| Net cash flows used in/from investing activities | -2,253,026,693.16 | -1,303,177,463.32 | -72.89% | Increased net cash flows used in the purchase and recovery of wealth management products and term deposits during the Reporting Period compared with the same period last year |
| Net cash flows used in/from financing activities | -692,657,291.32 | -340,841,192.32 | -103.22% | Increased dividend payout during the Reporting Period |
| Net increase in cash and cash equivalents | -840,354,079.38 | 681,497,084.43 | -223.31% | Decreased net cash flows from investing and financing activities during the Reporting Period compared with the same period last year |
Significant changes to the profit structure or sources of the Company in the Reporting Period:
□Applicable ? Not applicable
No such changes in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
| H1 2024 | H1 2023 | Change (%) | |||
| Amount | As % of operating revenue (%) | Amount | As % of operating revenue (%) | ||
| Total operating revenue | 9,231,969,089.44 | 100% | 7,760,573,887.29 | 100% | 18.96% |
| By operating division | |||||
| Online games | 9,231,969,089.44 | 100.00% | 7,760,573,887.29 | 100.00% | 18.96% |
| By product category | |||||
| Mobile games | 8,958,803,229.22 | 97.04% | 7,476,618,498.58 | 96.34% | 19.82% |
| Browser games | 213,942,038.14 | 2.32% | 253,306,881.77 | 3.26% | -15.54% |
| Others | 59,223,822.08 | 0.64% | 30,648,506.94 | 0.40% | 93.24% |
| By operating segment | |||||
| Domestic | 6,333,847,795.59 | 68.61% | 4,733,223,812.70 | 60.99% | 33.82% |
| Overseas | 2,898,121,293.85 | 31.39% | 3,027,350,074.59 | 39.01% | -4.27% |
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
? Applicable □ Not applicable
Unit: RMB
| Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
| By operating division | ||||||
| Online games | 9,231,969,089.44 | 1,880,723,779.43 | 79.63% | 18.96% | 12.98% | 1.08% |
| By product category | ||||||
| Mobile games | 8,958,803,229.22 | 1,703,854,828.37 | 80.98% | 19.82% | 7.65% | 2.15% |
| Browser games | 213,942,038.14 | 163,352,386.25 | 23.65% | -15.54% | 126.56% | -47.89% |
| Others | 59,223,822.08 | 13,516,564.81 | 77.18% | 93.24% | 38.84% | 8.94% |
| By operating segment | ||||||
| Domestic | 6,333,847,795.59 | 1,188,851,293.95 | 81.23% | 33.82% | 41.30% | -0.99% |
| Overseas | 2,898,121,293.85 | 691,872,485.48 | 76.13% | -4.27% | -15.96% | 3.32% |
Core business data restated according to the changed methods of measurement that occurred in the Reporting Period:
□Applicable ? Not applicable
Breakdown of the cost of sales for principal operations:
Unit: RMB
| Breakdown of cost | H1 2024 | H1 2023 | Change (%) | ||
| Amount | As % of cost of sales | Amount | As % of cost of sales | ||
| Royalties | 1,712,060,939.88 | 91.04% | 1,495,733,421.12 | 89.86% | 14.46% |
| Cost of servers | 130,404,806.42 | 6.93% | 97,763,750.37 | 5.87% | 33.39% |
| Amortization of copyright money | 24,478,393.74 | 1.30% | 45,617,203.76 | 2.74% | -46.34% |
| Other costs | 13,779,639.39 | 0.73% | 25,503,032.65 | 1.53% | -45.97% |
| Total | 1,880,723,779.43 | 100.00% | 1,664,617,407.90 | 100.00% | 12.98% |
Any over 30% YoY movements in the data above and why:
? Applicable □ Not applicable
1. Cost of sales of browser games increased by 126.56% YoY, primarily driven by the increased game licensing fees.
2. Cost of servers increased by 33.39% YoY, primarily driven by the increased number of active players for games such as Xun DaoDa Qian (寻道大千), Wu Ming Zhi Bei (无名之辈), and Ling Hun Xu Zhang (灵魂序章) during the Reporting Period, resulting inincreased server access, which in turn increased bandwidth resource consumption.
3. The amortized cost of copyright money decreased by 46.34% YoY, primarily driven by the dedcreased games with copyrightcost during the Reporting Period compared with the same period last year.
4. Other costs, mainly labour cost and technical service cost, decreased by 45.97% YoY, primarily driven by the decreased cost ofservice charges.
IV Analysis of Non-principal Operations
? Applicable □ Not applicable
Unit: RMB
| Amount | As % of profit before income tax expenses | Reason/source | Recurrent or not | |
| Investment income | 62,436,738.05 | 4.25% | Mainly due to gains and losses on long-term equity investments accounted for using the equity method, dividends during the period of holding equity investments, and income from investments in wealth management products | No |
| Gain/loss on changes in fair value | -34,768,367.03 | -2.37% | Mainly due to changes in fair value of equity investments and wealth management products | No |
| Impairment loss on assets | 2,073,562.27 | 0.14% | Mainly due to impairment loss on credit | Yes |
| Non-operating income | 1,426,343.47 | 0.10% | Mainly due to compensation income | No |
| Non-operating expenses | 4,615,650.36 | 0.31% | Mainly due to expenditure on donations and litigation damages | No |
| Other income | 41,785,392.54 | 2.85% | Mainly due to government grants that are related to normal business operations | No |
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| 30 June 2024 | 31 December 2023 | Change in percentage (%) | Reason for any significant change | |||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Monetary funds | 3,909,071,141.06 | 20.22% | 6,176,992,875.55 | 32.28% | -12.06% | The ending balance was lower than the beginning balance mainly due to net cash outflows from investing and financing activities. For further information, see “II 5. Consolidated Cash Flow Statement”, “53. Cash flow statement items” and “54. Supplementary information for the cash flow statement” under Note VII, in “Part X Financial Statements”. |
| Accounts receivable | 1,289,722,221.77 | 6.67% | 1,479,267,695.67 | 7.73% | -1.06% | No significant change |
| Long-term equity investments | 503,824,014.75 | 2.61% | 520,735,613.55 | 2.72% | -0.11% | No significant change |
| Fixed assets | 808,382,323.78 | 4.18% | 823,508,284.60 | 4.30% | -0.12% | No significant change |
| Construction in progress | 775,702,455.39 | 4.01% | 534,491,192.20 | 2.79% | 1.22% | No significant change occurred to this item as a percentage of total assets, while the ending balance |
| was higher than the beginning balance mainly due to the investments in the Guangzhou Headquarters Building construction project during the Reporting Period. | ||||||
| Right-of-use assets | 12,749,140.01 | 0.07% | 16,622,471.20 | 0.09% | -0.02% | No significant change |
| Short-term loans | 1,763,133,888.90 | 9.12% | 1,554,577,083.34 | 8.12% | 1.00% | No significant change |
| Contract liabilities | 290,102,426.56 | 1.50% | 280,023,602.87 | 1.46% | 0.04% | No significant change |
| Long-term loans | 80,750,000.00 | 0.42% | 306,000,000.00 | 1.60% | -1.18% | Mainly due to the repayment for bank loans that were over one year during the Reporting Period |
| Lease liabilities | 4,920,678.00 | 0.03% | 3,944,589.05 | 0.02% | 0.01% | No significant change |
| Trading financial assets | 2,804,612,941.44 | 14.51% | 2,024,681,502.03 | 10.58% | 3.93% | Mainly due to the increased balance of low-risk bank’s wealth management products and structured deposits that were purchased by the Company for higher return on capital |
| Prepayments | 1,040,456,754.16 | 5.38% | 1,143,237,497.90 | 5.97% | -0.59% | No significant change |
| Intangible assets | 1,967,049,751.39 | 10.18% | 1,040,204,870.96 | 5.44% | 4.74% | Mainly due to the land lot purchased by the Company in 2023 being recognized as land use rights for reason of the receipt of the immovable property certificate |
| Goodwill | 1,578,065,048.53 | 8.16% | 1,578,065,048.53 | 8.25% | -0.09% | No significant change |
| Other non-current assets | 2,260,434,678.96 | 11.69% | 2,280,577,680.43 | 11.92% | -0.23% | No significant change |
| Accounts payable | 2,017,452,437.79 | 10.44% | 1,825,714,480.74 | 9.54% | 0.90% | No significant change |
| Notes payable | 1,539,000,000.00 | 7.96% | 1,087,000,000.00 | 5.68% | 2.28% | Mainly due to the increased bank acceptance bills paid to suppliers during the Reporting Period |
2. Major Assets Overseas
? Applicable □ Not applicable
| Asset | Source | Asset value (RMB) | Location | Management model | Control measures to protect asset safety | Return generated (RMB) | As % of the Company’s equity | Material impairment risk or not |
| Other equity assets | Investments in overseas companies | 440,320,629.57 | Hong Kong in China, Canada, etc. | A sound business supervision mechanism and a sound risk control mechanism have been put in place | -24,384,910.96 | 3.48% | No | |
| Monetary funds | Income from investments and operations | 1,592,672,035.56 | Hong Kong in China, the US, etc. | A sound business supervision mechanism and a sound risk control mechanism have been put in place | 12.59% | No |
3. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes through equity | Impairment allowance made in the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Trading financial assets (exclusive of derivative financial assets) | 2,024,681,502.03 | -34,685,522.39 | 5,791,956,371.09 | 4,978,318,076.96 | 978,667.67 | 2,804,612,941.44 | ||
| 4. Other equity investments | 247,132,794.34 | -240,478,042.75 | 264,936.50 | 247,397,730.84 | ||||
| 5. Other non-current financial assets | 825,660,687.40 | 594,215.10 | 123,731,800.00 | 32,999,370.52 | 931,900.32 | 917,919,232.30 | ||
| Subtotal of financial assets | 3,097,474,983.77 | -34,091,307.29 | -240,478,042.75 | 5,915,688,171.09 | 5,011,317,447.48 | 2,175,504.49 | 3,969,929,904.58 | |
| Total of the above | 3,097,474,983.77 | -34,091,307.29 | -240,478,042.75 | 5,915,688,171.09 | 5,011,317,447.48 | 2,175,504.49 | 3,969,929,904.58 | |
| Financial liabilities | 74,311.41 | -677,059.74 | 295,426.44 | 641.38 | 456,586.09 | |||
Contents of other changes:
Other changes were incurred by exchange rate fluctuations, etc.Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes ? No
4. Restricted Asset Rights as at the End of the Reporting Period
| Item | Ending carrying amount (RMB) | Reason for restriction |
| Monetary funds | 1,129,038,633.80 | Principals and interest of term deposits with a maturity within one year as pledges |
| Fixed assets | 648,512,436.26 | As collateral for bank loan to the Company |
| Non-current assets due within one year | 717,568,020.90 | Principals and interest of term deposits with a maturity of over one year (due before June 2025) as pledges |
| Other non-current assets | 363,392,404.76 | Principals and interest of term deposits with a maturity of over one year as pledges |
| Total | 2,858,511,495.72 |
VI Principal Subsidiaries and Joint Stock Companies? Applicable □ Not applicablePrincipal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
| Name | Relationship with the Company | Principal activity | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Anhui 37 Jiyu Network Technology Co., Ltd. | Subsidiary | Development of mobile and browser games | 6,250,000.00 | 2,640,392,806.45 | 2,062,594,778.14 | 881,727,939.49 | 437,748,356.28 | 438,283,212.43 |
| 37 Interactive Entertainment (Shanghai) Technology Co., Ltd. | Subsidiary | Publishing and operation of mobile games | 10,000,000.00 | 14,724,581,652.51 | 5,900,189,099.94 | 9,236,166,416.53 | 1,038,651,625.15 | 832,967,267.66 |
Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
| Name of subsidiary | How it was obtained or disposed of | Effects on the overall operations and performance |
| Guangzhou Ban Tang Jia Bing Network Co., Ltd. | Transfer | No material effects on the overall operations and performance of the Company |
| Shanghai Tingxiong Network Technology Co., Ltd. | Acquisition in cash | In line with the Company’s strategic planning and helpful for its business development |
| Guangdong Qianxing Zhiqing Venture Capital Partnership (L.P.) | Entering into partnership | In line with the Company’s strategic planning and helpful for its business development |
Other information on principal subsidiaries and joint stock companies:
N/A
VII Risks Facing the Company and Countermeasures
1. Changes in industry policies, risks of violation and countermeasures
In recent years, the authority in charge has attached great importance to the development of game industry, made aseries of major decisions and arrangements and issued a series of policies and regulations to guide the industry to developin a standardized and healthy way. For example, clear new standards and requirements have been put forward forprotection of minors and anti-addiction of online games. Further strict management measures have been taken to promotestandardized management of game industry. At the same time, information security and protection of users' privacy havedrawn much attention from the society. In the long term, the regulation of the online game industry is becoming more andmore standardized, which is conducive to the healthy development of the industry. The enterprises with standardizedoperation will benefit from it. However, in the future, if the Company fails to make corresponding adjustments timely inaccordance with changes in industry policies or has a deviation in understanding management regulations in its operation,there may be a risk that the Company will be punished by relevant departments or the works will not go online as planned,which will have a significant negative impact on the Company's business development and brand image. In this regard, theCompany will strictly abide by various industry policies, rules and regulations, actively implement relevant requirements forindustry development, establish an internal sound quality management and control mechanism, strengthen industry policyrisk management capability, and fully reduce and avoid the business risks caused by changes in industry policies.
2. Market competition risks and countermeasures
The online game industry is facing increasingly fierce competition as it gradually matures. At the same time, onlinegame users are maturing with higher quality demand for game products. The industry is characteristic of fast producttransition, limited product life cycle and volatile player preferences, among others. Intense market competition willchallenge the Company’s development in terms of products and market channels.
In response, the Company will continue to implement the strategy of "boutiqueization, diversification andglobalization". On the one hand, it will strengthen its core competitiveness of its own business, pay continuous attention toself-research investment, carry out R&D and innovation in product creativity, gameplay, theme, art and technology, andkeep up with industry technology development trend; at the same time, it will maintain close cooperation with excellentdevelopers to guarantee the supply of quality products, and continue to expand game categories through independently-developed and agency games to deepen the competitive edge of "integration of R&D and operation". Meanwhile, theCompany will speed up the pace of exporting, give full play to the edges of it in overseas markets, face diversified operationsof overseas markets, deepen the cultivation of key markets, and broaden the categories of games and increase market share.In addition, the Company will dig deeper into operational data, and timely adjust operational and R&D strategies, to meetthe core demands of users, further play the role of new ideas of digital marketing operation, deepen the business strategy ofmulti-channel marketing and long-term service, and continuously enhance core competitiveness in the market.
Facing the current industrial competition pattern, the top-performing enterprise has obvious edges in technology R&Dability, channel operation ability, product promotion ability, user scale and market share. The Company will continue toconsolidate and cement its competitive edges, actively respond to changes in the industry, reduce market competition risksand seize market opportunities.
3. Risks of core personnel turnover and countermeasures
A stable and high-quality talent team is an important guarantee for the Company to maintain its core competitiveadvantage. If the Company fails to effectively build a core talent team, give reasonable incentives and manages the core
personnel, the employees’ enthusiasm and creativity will be affected, which will have an adverse impact on the Company’score competitiveness.In response, much attention has been attached to cultivation and acquisition of professional talents. The Companycreatively builds a platform-based talent management mechanism, according to which excellent game producers arerewarded with project bonus, and given discretion of research and project concept creation. In order to attract and retainoutstanding management talents and business elites, the Company has vigorously reformed the project mechanism,shortened the review cycle and established diversified objectives, so as to stimulate the innovative vitality of employees. Interms of employee performance management, the Company has set up diversified KPIs based on employees' contributionand ability, as well as reasonable team objectives and innovative incentive activities to encourage employees’ creativity, soas to increase the attractiveness to core staffs and R&D personnel.In addition, the Company cares about the long-term development of employees. The Company has established “37Interactive Entertainment Learning and Development Center” to provide sufficient training and learning opportunities foremployees and help them grow rapidly. The Company actively carried out training for newcomers and professional abilitiessuch as "Marathon Leadership Training Camp", "Huangpu New Army", "X+ Plan" and "37TALK", promoted talent upgradingto meet the needs of business upgrading, paid attention to internal sharing, established a team of internal professionallecturers among employees, spread culture of sharing, built a talent echelon and upgraded talent development system.Centering on the cultural concept of "health, happiness and sustainability", the Company upgraded colourful welfaresystem, strengthened humanistic care and promoted retention of talents. The colourful welfare system encompassesinterest-free loan, love fund, commercial insurance and employee health management. During the Reporting Period, theCompany launched the “New Generation Programme” as part of its ongoing efforts to enhance talent care and incentives.Through the programme, full-time employees with at least two years of service at the Company are offered a childbirth fundof RMB20,000 per child. In addition, seasonal activities on holidays, annual physical examination, singles' fellowship, "FamilyDay", "Boss Face-to-Face", "37 Battle Talk", "Carnival", “Healthy 37ers” and other thematic activities were regularly held.Inter-departments' team building promoted the connection between employees and their friends, relatives and colleagues.In addition, the Company has established recreational clubs for employees, covering “Super Runners”, e-sports, table games,dancing, badminton, footfall and yoga, created cultural atmosphere that meets the characteristics of the younger generation,strengthened employees' sense of belonging, balanced employees' work and life, and took care of employees' physical andmental health in various forms.
4. Technology iteration and innovation risk and countermeasures
The game industry has seen rapid technology iteration and faster changes in cutting-edge technologies, and demand fornew types of products has emerged among young users. Against this backdrop, if a game company fails to grasp the industrydevelopment trend in a forward-looking manner and promptly innovate its technology and products, its R&D and applicationof key technologies will be outdated, resulting in the risk of products falling behind the market.In response, the Company continued to focus on changes in the industry's cutting-edge technologies. First, it closelyfollowed industry changes and probed into cutting-edge technologies through investment layout to maintain sensitive toleading technologies. Second, it intensified the incubation of internal technologies, valued investment in self-developedgames, improved self-development system, established an effective R&D system framework, and introduced diversifiedincentives to encourage employees to explore new technologies. By taking these actions, the Company has reservedtechnologies and products for the industry development trend.
5. Risk associated with being investigated by the China Securities Regulatory Commission with no clear conclusion yet
On 27 June 2023, the Company, Mr. Li Weiwei (the actual controller and Chairman of the Board of the Company), andMr. Zeng Kaitian (the Vice Chairman of the Board of the Company) received the "Notification of the China SecuritiesRegulatory Commission on Case Filing" (CSRC Case No. 03720230061, No. 03720230062, No. 03720230063) from the saidcommission (hereinafter referred to as the "CSRC") respectively. For suspected information disclosure violations, accordingto the Securities Law of the People's Republic of China, the Law of the People's Republic of China on AdministrativePenalties and other applicable laws and regulations, the CSRC decided to file a case against the Company, Li Weiwei andZeng Kaitian.
During the period of investigation, the Company will actively cooperate with the CSRC’s investigation and fulfil itsinformation disclosure obligations in strict accordance with applicable laws, regulations and regulatory requirements.
Part IV Corporate GovernanceI Annual and Extraordinary General Meetings of Shareholders Convened during theReporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Date of disclosure | Resolutions of the meeting |
| The First Extraordinary General Meeting of Shareholders of 2024 | Extraordinary General Meeting of Shareholders | 46.61% | 12 January 2024 | 13 January 2024 | 1. The Proposal on the Plan for the Repurchase of Shares by Means of Centralized Bidding was approved. (1) Objective of the share repurchase (2) Share repurchase method and price range of shares to be repurchased (3) Type, purpose, total amount, number and percentage to the total capital of shares to be repurchased (4) Source of the funds to be used for the repurchase (5) Time limit of the share repurchase (6) Authorization for the share repurchase |
| The 2023 Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 46.32% | 10 May 2024 | 11 May 2024 | 1. The 2023 Work Report of the Board of Directors was approved; 2. The 2023 Work Report of the Supervisory Committee was approved; 3. The full 2023 Annual Report and its Summary in Chinese and the Summary in English were approved; 4. The 2023 Final Account Report was approved; 5. The 2023 Final Dividend Plan was approved; 6. The Proposal on Reappointment of Audit Firm was approved; 7. The Proposal on the Expected Guarantee Line for Subsidiaries in 2024 was approved; 8. The Proposal on Application for Bank Credit Line was approved; 9. The Proposal on Adjustment of Allowance for Independent Directors was approved; 10. The Proposal on Amendments to and Formulation of the Company's Some Systems was approved item by item; (1) The Company's Articles of Association (2) The Company's Rules of Procedure Governing General Meetings of Shareholders (3) The Company's Rules of Procedure Governing the Board Meetings (4) System for Independent Directors (5) Raised funds Management Measures 11. The Proposal on Amendments to the Company's Rules of Procedure Governing the Supervisory Committee Meetings was approved; and 12. The Proposal on Authorization to the Board to Decide on 2024 Interim Dividend Plan was approved. |
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preferred Shareholderswith Resumed Voting Rights
□ Applicable ? Not applicable
II Changes of Directors, Supervisors and Senior Management
□ Applicable ? Not applicable
No change occurred to the Company’s directors, supervisors or senior management during the Reporting Period. See the2023 Annual Report for their information.III Interim Dividend Plan? Applicable □ Not applicable
| Bonus issue from profit (share/10 shares) | 0 |
| Cash dividend/10 shares (RMB) (tax inclusive) | 2.10 |
| Share base (share) | 2,217,864,281 |
| Cash dividends (RMB) (tax inclusive) | 465,751,499.01 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 100,704,439.97 |
| Total cash dividends (including those in other forms) (RMB) | 566,455,938.98 |
| Distributable profit (RMB) | 3,579,382,199.85 |
| Total cash dividends (including those in other forms) as % of total profit to be distributed | 100% |
| Applicable cash dividend policy | |
| If it is difficult to identify the development stage of the Company but it has a significant capital expenditure arrangement, when making profit distribution, cash dividends shall account for no less than 20% in the profit distribution. | |
| Details of the cash and/or stock dividend plan | |
| Upon approval by the Board of Directors, the Company’s 2024 interim dividend plan is as follows: With a fixed dividend payout ratio, based on the total issued share capital (exclusive of shares in the Company’s account for repurchased shares) on the date of record, a cash dividend of RMB 2.10 (tax inclusive) per 10 shares is planned to be distributed to all the shareholders of the Company; and there will be no bonus issue from either profit or capital reserves. The above interim dividend plan is consistent with the Company’s performance growth, and also in line with relevant provisions of the Company Law, the Securities Law, the Articles of Association and the Company’s shareholder return plan. Therefore, it is legal, valid and reasonable. | |
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees? Applicable □ Not applicable
1. Equity Incentives
N/A
2. Implementation of Employee Stock Ownership Plans
? Applicable □ Not applicableOutstanding employee stock ownership plans during the Reporting Period:
| Awardee coverage | Number of awardees | Total number of shares held | Change | As % of the total share capital | Funding source |
| The Third Employee Stock Ownership Plan: the leadership team of the Company (directors, supervisors and senior management); chief | No more than 400 | 1,161,886 | N/A | 0.05% | Shares under the employee stock ownership plan were transferred from |
| officers and deputy chief officers; key management and technological staff (mid-level employees); and other employees approved by the Company | repurchased shares for no compensation. | ||||
| The Fourth Employee Stock Ownership Plan: the directors (exclusive of independent directors), supervisors, senior management, key management and staff who have direct and substantial impact on and contribution to the Company’s future operations and growth | No more than 650 | 16,301,534 | N/A | 0.74% | Shares under the employee stock ownership plan were transferred from repurchased shares for no compensation. |
Shares held by directors, supervisors and senior management under employee stock ownership plans during the ReportingPeriod:
| Name | Office title | Number of shares held at the period-begin | Number of shares held at the period-end | As % of the total share capital |
| Xu Zhigao, Yang Jun, Liu Jun, He Yang, Cheng Lin, Liu Fengyong, Ye Wei, and Zhu Huaimin | Directors, supervisors, and senior management | 1,585,000 | 1,585,000 | 0.07% |
Change of the asset management institution during the Reporting Period:
□ Applicable ? Not applicable
Share ownership changes due to share disposal by holders and other reasons during the Reporting Period:
? Applicable □ Not applicableAs at the end of the Reporting Period, 1,161,886 shares were held under the Third Employee Stock Ownership Plan,accounting for 0.05% of the total share capital.Exercise of shareholder rights during the Reporting Period:
N/AOther information about employee stock ownership plans during the Reporting Period:
? Applicable □ Not applicableThe second lock-up period of the Fourth Employee Stock Ownership Plan ended on 29 June 2024. As the 2023 annualoperating results failed to reach the target, the unlockable shares of all the awardees in the second lock-up period of theEmployee Stock Ownership Plan should not be unlocked.Changes in the members of the employee stock ownership plan management committee:
□ Applicable ? Not applicable
Impact of employee stock ownership plans on the finance of the Company during the Reporting Period and the relevantaccounting treatments:
? Applicable □ Not applicableAs per the Accounting Standard No. 11 for Business Enterprises—Share-based Payments, the amortized share-basedpayments were approximately RMB 40,965,800 for H1 2024.Termination of employee stock ownership plans during the Reporting Period:
□ Applicable ? Not applicable
Other information:
N/A
3. Other Incentive Measures for Employees
□ Applicable ? Not applicable
Part V Environmental and Social Responsibility
I Material Environmental IssuesIndicate whether the Company or any of its subsidiaries falls into major pollutant-discharge entities published byenvironmental protection authorities.
□ Yes ? No
Administrative punishments received during the Reporting Period due to environmental issues:
| Name of the Company or subsidiary | Reason for punishment | Regulation violated | Punishment | Impact on the Company | Rectification |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information in relation to major pollutant-discharge entities:
N/AActions taken during the Reporting Period to reduce carbon emissions and the results:
? Applicable □ Not applicableIncorporating “sustainable development” into its corporate vision, 37 Interactive Entertainment has established itsobjective of achieving carbon neutrality within its scope of business operations by 2025. For that purpose, the Company hascontinuously optimised its carbon neutrality path. By conducting carbon footprint verification, promoting green buildingdesign for its headquarters in Guangzhou, participating in green electricity certificate and carbon-sink trading, and co-developing emission reduction initiatives across the value chain, the Company has steadily progressed towards a zero-carbontransition.In advocating green and low-carbon practices, the Company continues to organise internal environmental protectionmonth activities, including environmental knowledge quizzes and wetland biodiversity conservation experiences. Theseactivities aim to encourage employees to adopt eco-friendly lifestyles. Additionally, leveraging its technological expertise,the Company has partnered with Guangzhou Haizhu National Wetland Park, the SEE Pearl River Project Center, theGuangdong Nature Conservation Foundation, and the Guangzhou Charity Federation to develop a public educationalplatform for wetland conservation. This platform aims to educate primary and secondary school students using interactiveand engaging methods on wetland conservation in the context of climate change.During the Reporting Period, 37 Interactive Entertainment’s near-term greenhouse gas reduction targets were officiallyvalidated by the Science Based Targets initiative (SBTi), a globally recognised climate action organisation. Pursuing theambitious goal of limiting global temperature increase to less than 1.5℃ outlined in the Paris Agreement, the Company willcollaborate with stakeholders to tackle the challenges of climate change.Reasons for the non-disclosure of other environmental information:
The Company is not a major pollutant-discharge entity published by environmental protection authorities. During theReporting Period, the Company received no punishments due to violation of environmental protection laws and regulations.II Corporate Social Responsibility (CSR)
1. Focusing on diversified empowerment for rural talent
In 2014, 37 Interactive Entertainment initiated the establishment of the Guangdong Youxin Charity Foundation. Thefoundation aims to promote the high-quality and balanced development of high school education in counties and youngtalent cultivation. For that purpose, the foundation collaborates with teachers, schools, educational authorities, charitable
organisations, and corporate volunteers to empower promising rural talent with a focus on innovative thinking, culturalknowledge, and financial support.Through the Guangdong Youxin Charity Foundation, the Company has carried out various programmes, such as the“Youxin Peers” high school education assistance program, the high school enrolment guarantee programme for ethnicminority girls, the county high school free reading programme, and the “Vocational Wisdom Calling” career planningprogramme. Additionally, the Company engages secondary school students in creative activities via its aerospace sciencepromotion platform—Fei Tian Meng Xiang Qi Hang (飞天梦想启航)—to encourage them to explore science with imaginationand creativity.During the Reporting Period, 37 Interactive Entertainment supported 2,628 outstanding high school students acrossseven provinces, including Anhui, Sichuan, and Gansu, through the Guangdong Youxin Charity Foundation.
2. Supporting quality and efficiency improvement of industry assistance
37 Interactive Entertainment actively supports the “10,000 Enterprises Revitalise 10,000 Villages” initiative. TheCompany leverages its strengths and connects resources to promote the growth of rural industries through collaboration. In2024, the Company established industry assistance cooperation with Zhecheng Village in Wuwei City, Anhui Province. Thecooperation focused on the local speciality—Zhecheng lotus seed. Through cultural creative plans, multi-channel productpromotions, and partnerships across the industrial chain, the Company helped sell 2,000 jin (approximately 1,000 kilograms)of lotus seeds, boosting local farmers’ income.During the Reporting Period, the Company invested over RMB250,000 to support the development of local industriessuch as lotus seeds and tea in Anhui, Yunnan, and Guangdong provinces.
3. Innovating talent nurturing through industry-university cooperation
The Company has been deepening cooperation with renowned domestic universities such as Sun Yat-sen University,Sichuan University, and Lanzhou University. The cooperation focuses on resource sharing and complementation in such fieldsas the application of cutting-edge technologies in the industry, innovation competitions, scholarships and grants, specialisedresearch projects, and themed campus-sharing sessions. By offering forward-looking and tailored education, the Companyaims to nurture innovative talent that meets the demands of both the industry and society.
During the Reporting Period, the Company successfully wrapped up its third “Sustainable Development InnovationChallenge for College and University Students”. This competition saw the participation of 766 students from over 90universities across China. These participants created digital works focusing on cultural preservation and promotion, ruralrevitalisation, and digital literacy education. The competition showcased the younger generation’s thoughts and responsesregarding sustainable social development. Ultimately, three works from South China Normal University, the GuangzhouAcademy of Fine Arts, and the University of Science and Technology of China stood out for their innovation, applicability, andkeen insights.
4. Contributing to society and building a better life together
During the Reporting Period, 37 Interactive Entertainment’s employees, under the leadership of the Company’s PartyCommittee, participated in 25 social volunteer service events. These events aimed to provide care for children with specialneeds and for the underprivileged, promote digital literacy education among youth, and support rural greening initiatives,demonstrating the Company’s concerns and care for the public.
To support nurturing high-calibre talent, including clinical medical professionals, and promote the high-qualitydevelopment of China’s healthcare sector, 37 Interactive Entertainment intends to donate RMB 5,000,000 to the FirstAffiliated Hospital of Sun Yat-sen University. The third-phase donation of RMB1,000,000 was completed during the ReportingPeriod.
Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
| Before | Increase/decrease in the Reporting Period (+/-) | After | |||||||
| Number | Percentage (%) | New issues | Shares as dividend converted from profit | Shares as dividend converted from capital reserves | Other | Subtotal | Number | Percentage (%) | |
| 1. Restricted shares | 610,515,810 | 27.53% | 2,754,578 | 2,754,578 | 613,270,388 | 27.65% | |||
| 1.1 Shares held by the government | |||||||||
| 1.2 Shares held by state-owned corporations | |||||||||
| 1.3 Shares held by other domestic investors | 610,515,810 | 27.53% | 2,754,578 | 2,754,578 | 613,270,388 | 27.65% | |||
| Including: Shares held by domestic corporations | |||||||||
| Shares held by domestic natural persons | 610,515,810 | 27.53% | 2,754,578 | 2,754,578 | 613,270,388 | 27.65% | |||
| 1.4 Shares held by overseas investors | |||||||||
| Including: Shares held by overseas corporations | |||||||||
| Shares held by overseas natural persons | |||||||||
| 2. Un-restricted shares | 1,607,348,471 | 72.47% | -2,754,578 | -2,754,578 | 1,604,593,893 | 72.35% | |||
| 2.1 RMB-denominated common shares | 1,607,348,471 | 72.47% | -2,754,578 | -2,754,578 | 1,604,593,893 | 72.35% | |||
| 2.2 Domestically listed foreign shares | |||||||||
| 2.3 Overseas listed foreign shares | |||||||||
| 2.4 Others | |||||||||
| 3. Total shares | 2,217,864,281 | 100.00% | 0 | 0 | 2,217,864,281 | 100.00% | |||
Reasons for share changes:
? Applicable □ Not applicableDuring the Reporting Period, the shareholding increases by the Company’s directors and senior management were locked up according to applicable laws, regulations andregulatory documents.Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
□ Applicable ? Not applicable
Progress on share repurchases:
? Applicable □ Not applicableAs of 31 July 2024, the Company had cumulatively repurchased 5,626,600 shares (or 0.25% of the total share capital) with its securities account for repurchased shares by the wayof centralized bidding. With the highest trading price being RMB 18.13/share and the lowest being RMB 17.66/share, the total amount paid was RMB 100,691,594 (exclusive oftransaction costs).Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable ? Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to the Company’s common shareholders and other financialindicators of the prior year and the prior accounting period, respectively:
? Applicable □ Not applicableDuring the Reporting Period, the Company implemented share repurchases with its securities account for repurchased shares by the way of centralized bidding. For details of therepurchases, see the announcements on repurchase progress. As per the Accounting Standards for Business Enterprises, the aforesaid repurchased shares were excluded in thecalculation of basic earnings per share.Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable ? Not applicable
2. Changes in Restricted Shares
? Applicable □ Not applicable
Unit: share
| Name of shareholder | Beginning restricted shares | Shares with restriction lifted in the Reporting Period | Increase in restricted shares in the Reporting Period | Ending restricted shares | Reason for restriction | Lifting date |
| Li Weiwei | 242,421,239 | 0 | 0 | 242,421,239 | Locked-up shares of senior management | Subject to regulations in respect of changes in shareholdings of directors, supervisors and senior management in the Company Law, etc. |
| Zeng Kaitian | 184,008,280 | 0 | 847,275 | 184,855,555 | Locked-up shares of senior management | Subject to regulations in respect of changes in shareholdings of directors, supervisors and senior management in the Company Law, etc. |
| Hu Yuhang | 151,198,263 | 0 | 0 | 151,198,263 | Locked-up shares of senior management | Subject to regulations in respect of changes in shareholdings of directors, supervisors and senior management in the Company Law, etc. |
| Xu Zhigao | 27,340,427 | 0 | 1,907,303 | 29,247,730 | Locked-up shares of senior management | Subject to regulations in respect of changes in shareholdings of directors, supervisors and senior management in the Company Law, etc. |
| Yang Jun | 1,575,000 | 0 | 0 | 1,575,000 | Locked-up shares of senior management | Subject to regulations in respect of changes in shareholdings of directors, supervisors and senior management in the Company Law, etc. |
| Liu Jun | 3,972,601 | 0 | 0 | 3,972,601 | Locked-up shares of senior management | Subject to regulations in respect of changes in shareholdings of directors, supervisors and senior management in the Company Law, etc. |
| Total | 610,515,810 | 0 | 2,754,578 | 613,270,388 | -- | -- |
II Issuance and Listing of Securities
□ Applicable ? Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
| Number of common shareholders | 184,159 | Number of preferred shareholders with resumed voting rights (if any) (see note 8) | 0 | |||||
| 5% or greater common shareholders or the top 10 common shareholders (exclusive of shares lent in refinancing) | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Common shares held | Increase/decrease in the Reporting Period | Restricted common shares held | Un-restricted common shares held | Pledged, marked or frozen status | |
| Status | Shares | |||||||
| Li Weiwei | Domestic natural person | 14.57% | 323,228,319 | 0 | 242,421,239 | 80,807,080 | ||
| Zeng Kaitian | Domestic natural person | 11.11% | 246,474,074 | 1,129,700 | 184,855,555 | 61,618,519 | ||
| Hu Yuhang | Domestic natural person | 9.09% | 201,597,684 | 0 | 151,198,263 | 50,399,421 | Pledged | 24,550,000 |
| Hong Kong Securities Clearing Company Ltd. | Overseas corporation | 6.26% | 138,931,229 | -104,678,975 | 0 | 138,931,229 | ||
| China Minsheng Banking Corp., Ltd.－China Securities Cartoon Games Trading Open-ended Index Securities Investment Fund | Other | 1.94% | 42,994,538 | 18,124,535 | 0 | 42,994,538 | ||
| Xu Zhigao | Domestic natural person | 1.76% | 38,996,974 | 2,543,071 | 29,247,730 | 9,749,244 | ||
| Wu Weihong | Domestic natural person | 1.59% | 35,253,178 | 0 | 0 | 35,253,178 | ||
| Wu Weidong | Domestic natural person | 1.00% | 22,091,357 | 0 | 0 | 22,091,357 | ||
| Shanghai Dongyonghong Business Management Partnership (Limited Partnership) | Domestic non-state-owned corporation | 0.90% | 20,000,000 | 0 | 0 | 20,000,000 | ||
| Industrial and Commercial Bank of China Limited－Huatai-PineBridge CSI 300 Trading Open-ended Index Securities Investment Fund | Other | 0.83% | 18,473,429 | 6,855,600 | 0 | 18,473,429 | ||
| Strategic investor or general corporation becoming a top-10 common shareholder in a rights issue (if any) (see note 3) | N/A | |||||||
| Related or acting-in-concert parties among the shareholders above | 1. Among the top 10 shareholders of the Company, Wu Weihong, Wu Weidong and Shanghai Dongyonghong Business Management Partnership (Limited Partnership) are shareholders acting in concert. 2. The Company is not aware of whether there is, among the other top 10 shareholders, any related parties or acting-in-concert parties as defined in the Measures on the Administration of Acquisition of Listed Companies. | |||||||
| Explain if any of the shareholders above was involved in | N/A | |||||||
| entrusting/being entrusted with voting rights or waiving voting rights | |||
| Special account for share repurchases (if any) among the top 10 shareholders (see note 11) | The Company had cumulatively repurchased 18,166,147 shares (or 0.82% of the total share capital as at 30 June 2024) with its securities account for repurchased shares by the way of centralized bidding. The said account of repurchased shares is not listed as a top 10 un-restricted common shareholder as required. | ||
| Top 10 un-restricted common shareholders (exclusive of shares lent in refinancing and senior management’s locked-up shares) | |||
| Name of shareholder | Un-restricted common shares held | Shares by class | |
| Class | Shares | ||
| Hong Kong Securities Clearing Company Ltd. | 138,931,229 | RMB-denominated common shares | 138,931,229 |
| Li Weiwei | 80,807,080 | RMB-denominated common shares | 80,807,080 |
| Zeng Kaitian | 61,618,519 | RMB-denominated common shares | 61,618,519 |
| Hu Yuhang | 50,399,421 | RMB-denominated common shares | 50,399,421 |
| China Minsheng Banking Corp., Ltd.－China Securities Cartoon Games Trading Open-ended Index Securities Investment Fund | 42,994,538 | RMB-denominated common shares | 42,994,538 |
| Wu Weihong | 35,253,178 | RMB-denominated common shares | 35,253,178 |
| Wu Weidong | 22,091,357 | RMB-denominated common shares | 22,091,357 |
| Shanghai Dongyonghong Business Management Partnership (Limited Partnership) | 20,000,000 | RMB-denominated common shares | 20,000,000 |
| Industrial and Commercial Bank of China Limited－Huatai-PineBridge CSI 300 Trading Open-ended Index Securities Investment Fund | 18,473,429 | RMB-denominated common shares | 18,473,429 |
| 37 Interactive Entertainment Network Technology Group Co., Ltd.-The Fourth Employee Stock Ownership Plan | 16,301,534 | RMB-denominated common shares | 16,301,534 |
| Related or acting-in-concert parties among the top 10 un-restricted common shareholders, as well as between the top 10 un-restricted common shareholders and the top 10 common shareholders | 1. Among the top 10 shareholders of the Company, Wu Weihong, Wu Weidong and Shanghai Dongyonghong Business Management Partnership (Limited Partnership) are shareholders acting in concert. 2. The Company is not aware of whether there is, among the other top 10 shareholders, any related parties or acting-in-concert parties as defined in the Measures on the Administration of Acquisition of Listed Companies. | ||
| Top 10 common shareholders engaged in securities margin trading (if any) (see note 4) | As of the end of the Reporting Period, shareholder China Minsheng Banking Corp., Ltd.－China Securities Cartoon Games Trading Open-ended Index Securities Investment Fund held 305,400 shares that were lent in refinancing. | ||
5% or greater shareholders, top 10 shareholders and top 10 un-restricted public shareholders involved in refinancing shares lending:
? Applicable □ Not applicable
Unit: Share
| 5% or greater shareholders, top 10 shareholders and top 10 un-restricted public shareholders involved in refinancing shares lending | ||||||||
| Full name of shareholder | Shares in the common account and credit account at the period-begin | Shares lent in refinancing and not yet returned at the period-begin | Shares in the common account and credit account at the period-end | Shares lent in refinancing and not yet returned at the period-end | ||||
| Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | |
| China Minsheng Banking Corp., Ltd.－China Securities Cartoon Games Trading Open-ended Index Securities Investment Fund | 24,870,003 | 1.12% | 5,167,400 | 0.23% | 42,994,538 | 1.94% | 305,400 | 0.01% |
| Industrial and Commercial Bank of China Limited－Huatai-PineBridge CSI 300 Trading Open-ended Index Securities Investment Fund | 11,617,829 | 0.52% | 34,800 | 0.00% | 18,473,429 | 0.83% | 0.00 | 0.00% |
Indicate whether there was any change to the top 10 shareholders or top 10 un-restricted public shareholders due to refinancing shares lending/returning during the ReportingPeriod compared to the same period of last year.
□ Applicable ? Not applicable
Indicate whether any of the top 10 common shareholders or the top 10 un-restricted common shareholders of the Company conducted any promissory repo during the ReportingPeriod.
□ Yes ? No
No such cases in the Reporting Period.IV Changes in the Shareholdings of Directors, Supervisors and Senior Management
? Applicable □ Not applicable
| Name | Office title | Incumbent/Former | Beginning shareholding (share) | Increase in the period (share) | Decrease in the period (share) | Ending shareholding (share) | Beginning restricted shares granted (share) | Restricted shares granted in the period (share) | Ending restricted shares granted (share) |
| Zeng Kaitian | Vice Chairman of the Board | Incumbent | 245,344,374 | 1,129,700 | 0 | 246,474,074 | 0 | 0 | 0 |
| Xu Zhigao | General Manager | Incumbent | 36,453,903 | 2,543,071 | 0 | 38,996,974 | 0 | 0 | 0 |
| Total | -- | -- | 281,798,277 | 3,672,771 | 0 | 285,471,048 | 0 | 0 | 0 |
V Change of the Controlling Shareholder or Actual ControllerChange of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Change of the actual controller in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Part VII Financial StatementsI Independent Auditor’s ReportAre these interim financial statements audited by an independent auditor?
□ Yes ? No
They are unaudited by such an auditor.II Financial StatementsCurrency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by 37 Interactive Entertainment Network Technology Group Co., Ltd.
30 June 2024
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Monetary funds | 3,909,071,141.06 | 6,176,992,875.55 |
| Transaction settlement funds | ||
| Loans to other banks | ||
| Trading financial assets | 2,804,612,941.44 | 2,024,681,502.03 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 1,289,722,221.77 | 1,479,267,695.67 |
| Accounts receivable financing | ||
| Prepayments | 1,040,456,754.16 | 1,143,237,497.90 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 35,787,493.10 | 46,247,241.46 |
| Including: Interest receivable | ||
| Dividends receivable | 3,363,297.36 | 10,000,000.00 |
| Redemptory monetary capital for sale | ||
| Inventories | ||
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | 916,503,605.34 | 164,307,298.27 |
| Other current assets | 90,703,934.11 | 88,085,256.86 |
| Total current assets | 10,086,858,090.98 | 11,122,819,367.74 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 503,824,014.75 | 520,735,613.55 |
| Other equity investments | 247,397,730.84 | 247,132,794.34 |
| Other non-current financial assets | 917,919,232.30 | 825,660,687.40 |
| Investment properties | ||
| Fixed assets | 808,382,323.78 | 823,508,284.60 |
| Construction in progress | 775,702,455.39 | 534,491,192.20 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 12,749,140.01 | 16,622,471.20 |
| Intangible assets | 1,967,049,751.39 | 1,040,204,870.96 |
| Including: Data resources | ||
| Development expenditure | ||
| Including: Data resources | ||
| Goodwill | 1,578,065,048.53 | 1,578,065,048.53 |
| Long-term deferred expenses | 93,399,383.85 | 90,785,937.93 |
| Deferred income tax assets | 79,811,706.04 | 53,947,130.48 |
| Other non-current assets | 2,260,434,678.96 | 2,280,577,680.43 |
| Total non-current assets | 9,244,735,465.84 | 8,011,731,711.62 |
| Total assets | 19,331,593,556.82 | 19,134,551,079.36 |
| Current liabilities: | ||
| Short-term loans | 1,763,133,888.90 | 1,554,577,083.34 |
| Loans from the central bank | ||
| Loans from other banks | ||
| Trading financial liabilities | 456,586.09 | 74,311.41 |
| Derivative financial liabilities | ||
| Notes payable | 1,539,000,000.00 | 1,087,000,000.00 |
| Accounts payable | 2,017,452,437.79 | 1,825,714,480.74 |
| Advances from customers | ||
| Contract liabilities | 290,102,426.56 | 280,023,602.87 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 257,164,937.24 | 408,786,174.15 |
| Taxes payable | 173,170,504.02 | 280,471,436.39 |
| Other payables | 199,468,090.24 | 201,521,074.52 |
| Including: Interest payable | ||
| Dividends payable | ||
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 83,628,350.02 | 212,167,632.34 |
| Other current liabilities | 60,229,306.00 | 55,277,993.63 |
| Total current liabilities | 6,383,806,526.86 | 5,905,613,789.39 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 80,750,000.00 | 306,000,000.00 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 4,920,678.00 | 3,944,589.05 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 106,834,520.94 | 106,630,292.58 |
| Other non-current liabilities | ||
| Total non-current liabilities | 192,505,198.94 | 416,574,881.63 |
| Total liabilities | 6,576,311,725.80 | 6,322,188,671.02 |
| Shareholders' equity: | ||
| Share capital | 2,217,864,281.00 | 2,217,864,281.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 2,863,916,788.42 | 2,823,040,832.04 |
| Less: Treasury shares | 401,229,096.75 | 300,524,656.78 |
| Other comprehensive income | -120,147,454.57 | -129,511,563.25 |
| Special reserves | ||
| Surplus reserves | 666,869,940.33 | 666,869,940.33 |
| General risk reserves | ||
| Retained earnings | 7,418,014,496.76 | 7,429,206,642.53 |
| Total equity attributable to shareholders of the Company | 12,645,288,955.19 | 12,706,945,475.87 |
| Non-controlling interests | 109,992,875.83 | 105,416,932.47 |
| Total shareholders' equity | 12,755,281,831.02 | 12,812,362,408.34 |
| Total liabilities and shareholders’ equity | 19,331,593,556.82 | 19,134,551,079.36 |
Legal representative: Xu Zhigao Chief Financial Officer: Ye Wei Board Secretary: Ye Wei
2. Balance Sheet of the Company
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Monetary funds | 165,117,598.57 | 802,609,416.49 |
| Trading financial assets | 1,402,777,753.42 | 800,986,301.37 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | ||
| Accounts receivable financing | ||
| Prepayments | 493,394.04 | 66,418.86 |
| Other receivables | 1,998,389,579.53 | 3,679,202,452.33 |
| Including: Interest receivable | ||
| Dividends receivable | 146,713.60 | |
| Inventories | ||
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 7,207,139.11 | 7,068,190.52 |
| Total current assets | 3,573,985,464.67 | 5,289,932,779.57 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 9,699,640,055.87 | 9,659,679,501.59 |
| Other equity investments | ||
| Other non-current financial assets | 80,738,178.41 | 76,589,599.00 |
| Investment properties | ||
| Fixed assets |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 3,542,376.48 | 4,605,089.46 |
| Intangible assets | ||
| Including: Data resources | ||
| Development expenditure | ||
| Including: Data resources | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | 693,817.41 | |
| Other non-current assets | ||
| Total non-current assets | 9,784,614,428.17 | 9,740,874,190.05 |
| Total assets | 13,358,599,892.84 | 15,030,806,969.62 |
| Current liabilities: | ||
| Short-term loans | 200,133,888.90 | 200,155,833.34 |
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 27,895.92 | |
| Advances from customers | ||
| Contract liabilities | ||
| Employee benefits payable | 64,060.00 | 30,200.00 |
| Taxes payable | 12,158,027.82 | 11,281,109.24 |
| Other payables | 33,047,264.81 | 28,901,705.53 |
| Including: Interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 75,331,885.91 | 200,318,482.28 |
| Other current liabilities | ||
| Total current liabilities | 320,763,023.36 | 440,687,330.39 |
| Non-current liabilities: | ||
| Long-term loans | 80,750,000.00 | 306,000,000.00 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 2,583,633.12 | 2,552,367.43 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 142,444.51 | |
| Other non-current liabilities | ||
| Total non-current liabilities | 83,333,633.12 | 308,694,811.94 |
| Total liabilities | 404,096,656.48 | 749,382,142.33 |
| Shareholders' equity: | ||
| Share capital | 2,217,864,281.00 | 2,217,864,281.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 6,509,553,711.76 | 6,468,587,957.50 |
| Less: Treasury shares | 401,229,096.75 | 300,524,656.78 |
| Other comprehensive income | -60,000,000.00 | -60,000,000.00 |
| Special reserves | ||
| Surplus reserves | 1,108,932,140.50 | 1,108,932,140.50 |
| Retained earnings | 3,579,382,199.85 | 4,846,565,105.07 |
| Total shareholders' equity | 12,954,503,236.36 | 14,281,424,827.29 |
| Total liabilities and shareholders’ equity | 13,358,599,892.84 | 15,030,806,969.62 |
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Total operating revenue | 9,231,969,089.44 | 7,760,573,887.29 |
| Including: Operating revenue | 9,231,969,089.44 | 7,760,573,887.29 |
| Interest income | ||
| Premium income | ||
| Handling charge and commission income | ||
| 2. Total operating costs and expenses | 7,832,939,934.89 | 6,492,830,653.62 |
| Including: Cost of sales | 1,880,723,779.43 | 1,664,617,407.90 |
| Interest expense | ||
| Handling charge and commission expenses | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as policy reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expenses | ||
| Taxes and surcharges | 20,367,278.88 | 15,088,022.35 |
| Distribution and selling expenses | 5,360,351,377.24 | 4,279,408,761.57 |
| General and administrative expenses | 295,724,089.56 | 257,073,397.84 |
| Research and development expenses | 350,778,127.57 | 388,284,125.67 |
| Financial expenses | -75,004,717.79 | -111,641,061.71 |
| Including: Interest expense | 40,576,529.74 | 33,953,476.02 |
| Interest income | 128,780,026.36 | 147,092,025.34 |
| Add: Other income | 41,785,392.54 | 67,310,526.91 |
| Investment income (“-” for loss) | 62,436,738.05 | -3,937,725.83 |
| Including: Share of profits and losses of joint ventures and associates | -12,407,533.87 | -12,257,097.35 |
| Gain on derecognition of financial assets measured at amortised cost (“-” for loss) | ||
| Gain on exchange (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -34,768,367.03 | 66,445,566.71 |
| Impairment loss on credit (“-” for loss) | 2,073,562.27 | 350,866.28 |
| Impairment loss on assets (“-” for loss) | ||
| Gain on disposal of assets (“-” for loss) | 180,389.09 | 128,077.35 |
| 3. Operating profit (“-” for loss) | 1,470,736,869.47 | 1,398,040,545.09 |
| Add: Non-operating income | 1,426,343.47 | 17,988,142.97 |
| Less: Non-operating expenses | 4,615,650.36 | 3,648,696.49 |
| 4. Profit before income tax expenses (“-” for loss) | 1,467,547,562.58 | 1,412,379,991.57 |
| Less: Income tax expenses | 202,945,190.16 | 205,127,044.68 |
| 5. Net profit (“-” for net loss) | 1,264,602,372.42 | 1,207,252,946.89 |
| 5.1 Classified by continuity of operations | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 1,264,602,372.42 | 1,207,252,946.89 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 Classified by ownership of the equity | ||
| 5.2.1 Net profit attributable to shareholders of the Company (“-” for net loss) | 1,264,633,578.95 | 1,226,061,335.07 |
| 5.2.2 Net profit attributable to non-controlling | -31,206.53 | -18,808,388.18 |
| interests (“-” for net loss) | ||
| 6. Other comprehensive income, net of tax | 9,364,108.68 | 53,929,297.40 |
| Other comprehensive income attributable to shareholders of the Company, net of tax | 9,364,108.68 | 53,929,297.40 |
| 6.1 Other comprehensive income that will not be reclassified subsequently to profit or loss | 807.00 | |
| 6.1.1 Changes caused by remeasurement of defined benefit pension schemes | ||
| 6.1.2 Share of the other comprehensive income of the investee accounted for using equity method that will not be reclassified subsequently to profit or loss | ||
| 6.1.3 Changes in fair value of other equity investments | 807.00 | |
| 6.1.4 Changes in the fair value of the company's own credit risk | ||
| 6.1.5 Others | ||
| 6.2 Other comprehensive income that will be reclassified subsequently to profit or loss | 9,363,301.68 | 53,929,297.40 |
| 6.2.1 Share of the other comprehensive income of the investee accounted for using equity method that will be reclassified subsequently to profit or loss | -524,693.70 | |
| 6.2.2 Changes in fair value of other equity investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Allowance for credit impairments in other debt investments | ||
| 6.2.5 Cash flow hedge reserve | ||
| 6.2.6 Exchange differences on translation of foreign currency financial statements | 9,363,301.68 | 54,453,991.10 |
| 6.2.7 Others | ||
| Other comprehensive income attributable to non-controlling interests, net of tax | ||
| 7. Total comprehensive income | 1,273,966,481.10 | 1,261,182,244.29 |
| Total comprehensive income attributable to shareholders of the Company | 1,273,997,687.63 | 1,279,990,632.47 |
| Total comprehensive income attributable to non-controlling interests | -31,206.53 | -18,808,388.18 |
| 8. Earnings per share: | ||
| 8.1 Basic earnings per share | 0.57 | 0.55 |
| 8.2 Diluted earnings per share | 0.57 | 0.55 |
Where business combinations under common control occurred in the current period, the net profit achieved by theacquirees before the combinations was RMB 0.00 with the amount for the same period of last year being RMB 0.00.Legal representative: Xu Zhigao Chief Financial Officer: Ye Wei Board Secretary: Ye Wei
4. Income Statement of the Company
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Operating revenue | 0.00 | 9,433.96 |
| Less: Cost of sales | 0.00 | 0.00 |
| Taxes and surcharges | 23,538.06 | 40,349.85 |
| Distribution and selling expenses | ||
| General and administrative expenses | 3,549,968.63 | 7,355,482.54 |
| Research and development expenses | ||
| Financial expenses | 5,367,745.74 | -1,188,161.14 |
| Including: Interest expense | 12,328,004.75 | 11,116,569.01 |
| Interest income | 7,710,432.20 | 12,897,500.79 |
| Add: Other income | 2,294,998.75 | 4,454,284.28 |
| Investments income (“-” for loss) | 2,448,220.44 | 1,212,602.75 |
| Including: Share of profits and losses of joint ventures and associates | ||
| Gain on derecognition of financial assets measured at amortised cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 13,939,894.49 | 9,087,945.21 |
| Impairment loss on credit (“-” for loss) | ||
| Impairment loss on assets (“-” for loss) | ||
| Gain on disposal of assets (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 9,741,861.25 | 8,556,594.95 |
| Add: Non-operating income | 98,521.32 | 1,478.73 |
| Less: Non-operating expenses | 1.80 | |
| 3. Profit before income tax expenses (“-” for loss) | 9,840,380.77 | 8,558,073.68 |
| Less: Income tax expenses | 1,198,368.27 | 2,454,842.97 |
| 4. Net profit (“-” for net loss) | 8,642,012.50 | 6,103,230.71 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 8,642,012.50 | 6,103,230.71 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | ||
| 5.1 Other comprehensive income that will not be reclassified subsequently to profit or loss | ||
| 5.1.1 Changes caused by remeasurement of defined benefit pension schemes | ||
| 5.1.2 Share of the other comprehensive income of the investee accounted for using equity method that will not be reclassified subsequently to profit or loss | ||
| 5.1.3 Changes in fair value of other equity investments | ||
| 5.1.4 Changes in the fair value of the company's own credit risk | ||
| 5.1.5 Others | ||
| 5.2 Other comprehensive income that will be reclassified subsequently to profit or loss | ||
| 5.2.1 Share of the other comprehensive income of the investee accounted for using equity method that will be reclassified subsequently to profit or loss | ||
| 5.2.2 Changes in fair value of other equity investments | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Allowance for credit impairments in other debt investments | ||
| 5.2.5 Cash flow hedge reserve | ||
| 5.2.6 Exchange differences on translation of foreign currency financial statements | ||
| 5.2.7 Others | ||
| 6. Total comprehensive income | 8,642,012.50 | 6,103,230.71 |
| 7. Earnings per share: | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Cash flows from operating activities: | ||
| Cash received from the sales of goods or rendering services | 9,620,114,536.93 | 8,013,861,147.65 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in loans from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, handling charges and commissions received | ||
| Net increase in loans from other banks | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Refunds of taxes and levies | 719,485.79 | 1,719,882.70 |
| Cash received relating to other operating activities | 139,944,356.80 | 148,031,300.57 |
| Sub-total of cash inflows from operating activities | 9,760,778,379.52 | 8,163,612,330.92 |
| Cash paid for purchases of goods and services | 1,702,546,188.13 | 1,473,884,579.03 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and other banks and financial institutions | ||
| Payments for claims on original insurance contracts | ||
| Net increase in loans to other banks | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and on behalf of employees | 927,266,621.10 | 887,376,046.67 |
| Payments of taxes and levies | 398,069,513.84 | 379,073,806.45 |
| Cash paid relating to other operating activities | 4,603,712,541.46 | 3,103,320,722.36 |
| Sub-total of cash outflows used in operating activities | 7,631,594,864.53 | 5,843,655,154.51 |
| Net cash flows from operating activities | 2,129,183,514.99 | 2,319,957,176.41 |
| 2. Cash flows from investing activities: | ||
| Cash received from disposal of investments | 43,752,606.12 | 127,010,330.31 |
| Cash received from investment income | 210,370,371.13 | 78,491,745.68 |
| Cash received from disposal of fixed assets, intangible assets and other long-term assets | 469,762.92 | 1,499,959.98 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Cash received relating to other investing activities | 9,639,667,817.18 | 7,872,668,719.59 |
| Sub-total of cash inflows from investing activities | 9,894,260,557.35 | 8,079,670,755.56 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 342,930,122.81 | 139,259,591.32 |
| Cash paid to acquire investments | 327,682,116.26 | 117,602,305.30 |
| Net increase in pledged loans granted | ||
| Net cash paid for the acquisition of subsidiaries | 49,991.06 | 26,589.40 |
| and other business units | ||
| Cash paid relating to other investing activities | 11,476,625,020.38 | 9,125,959,732.86 |
| Sub-total of cash outflows used in investing activities | 12,147,287,250.51 | 9,382,848,218.88 |
| Net cash flows from/used in investing activities | -2,253,026,693.16 | -1,303,177,463.32 |
| 3. Cash flows from financing activities: | ||
| Cash received from capital contributions | 320,000.00 | |
| Including: Cash received from capital contributions by non-controlling interests of subsidiaries | 320,000.00 | |
| Cash received from borrowings | 1,753,000,000.00 | 1,426,000,000.00 |
| Cash received relating to other financing activities | 873,000,000.00 | 65,000,000.00 |
| Sub-total of cash inflows from financing activities | 2,626,000,000.00 | 1,491,320,000.00 |
| Cash repayments of borrowings | 1,894,380,000.00 | 222,250,000.00 |
| Cash paid for interest and dividends | 1,316,399,138.66 | 1,028,631,589.17 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash paid relating to other financing activities | 107,878,152.66 | 581,279,603.15 |
| Sub-total of cash outflows used in financing activities | 3,318,657,291.32 | 1,832,161,192.32 |
| Net cash flows from/used in financing activities | -692,657,291.32 | -340,841,192.32 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -23,853,609.89 | 5,558,563.66 |
| 5. Net increase/decrease in cash and cash equivalents | -840,354,079.38 | 681,497,084.43 |
| Add: Cash and cash equivalents at beginning of the period | 2,745,481,726.82 | 3,320,472,098.94 |
| 6. Cash and cash equivalents at end of the period | 1,905,127,647.44 | 4,001,969,183.37 |
6. Cash Flow Statement of the Company
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Cash flows from operating activities: | ||
| Cash received from the sales of goods or rendering services | 10,000.00 | |
| Refunds of taxes and levies | ||
| Cash received relating to other operating activities | 2,098,673,269.47 | 1,117,210,020.74 |
| Sub-total of cash inflows from operating activities | 2,098,673,269.47 | 1,117,220,020.74 |
| Cash paid for purchases of goods and services | ||
| Cash paid to and on behalf of employees | 189,244.00 | 1,501,203.60 |
| Payments of taxes and levies | 2,616,846.16 | 3,912,982.44 |
| Cash paid relating to other operating activities | 406,244,582.28 | 627,828,879.40 |
| Sub-total of cash outflows used in operating activities | 409,050,672.44 | 633,243,065.44 |
| Net cash flows from/used in operating activities | 1,689,622,597.03 | 483,976,955.30 |
| 2. Cash flows from investing activities: | ||
| Cash received from disposal of investments | ||
| Cash received from investment income | 14,947,619.87 | 17,239,041.11 |
| Cash received from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other business units | ||
| Cash received relating to other investing activities | 2,400,000,000.00 | 2,400,000,000.00 |
| Sub-total of cash inflows from investing activities | 2,414,947,619.87 | 2,417,239,041.11 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | ||
| Cash paid to acquire investments | ||
| Net cash paid for the acquisition of subsidiaries and other business units | ||
| Cash paid relating to other investing activities | 2,700,000,000.00 | 2,380,000,000.00 |
| Sub-total of cash outflows used in investing activities | 2,700,000,000.00 | 2,380,000,000.00 |
| Net cash flows from/used in investing activities | -285,052,380.13 | 37,239,041.11 |
| 3. Cash flows from financing activities: | ||
| Cash received from capital contributions | ||
| Cash received from borrowings | 300,000,000.00 | 490,000,000.00 |
| Cash received relating to other financing activities | ||
| Sub-total of cash inflows from financing activities | 300,000,000.00 | 490,000,000.00 |
| Cash repayments of borrowings | 650,000,000.00 | 14,250,000.00 |
| Cash paid for interest and dividends | 1,288,380,197.59 | 1,006,413,029.76 |
| Cash paid relating to other financing activities | 100,704,439.97 | 0.00 |
| Sub-total of cash outflows used in financing activities | 2,039,084,637.56 | 1,020,663,029.76 |
| Net cash flows from/used in financing activities | -1,739,084,637.56 | -530,663,029.76 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | ||
| 5. Net increase/decrease in cash and cash equivalents | -334,514,420.66 | -9,447,033.35 |
| Add: Cash and cash equivalents at beginning of the period | 499,632,019.23 | 205,561,434.10 |
| 6. Cash and cash equivalents at end of the period | 165,117,598.57 | 196,114,400.75 |
7. Consolidated Statement of Changes in Shareholders’ Equity
H1 2024
Unit: RMB
| Item | H1 2024 | ||||||||||||||
| Equity attributable to shareholders of the Company | Non-controlling interests | Total shareholders' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Retained earnings | Others | Sub-total | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| 1. Balance as at the end of prior year | 2,217,864,281.00 | 2,823,040,832.04 | 300,524,656.78 | -129,511,563.25 | 666,869,940.33 | 7,429,206,642.53 | 12,706,945,475.87 | 105,416,932.47 | 12,812,362,408.34 | ||||||
| Add: Adjustments for changed accounting policies | |||||||||||||||
| Adjustments for corrections of previous errors | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance as at beginning of year | 2,217,864,281.00 | 2,823,040,832.04 | 300,524,656.78 | -129,511,563.25 | 666,869,940.33 | 7,429,206,642.53 | 12,706,945,475.87 | 105,416,932.47 | 12,812,362,408.34 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 40,875,956.38 | 100,704,439.97 | 9,364,108.68 | -11,192,145.77 | -61,656,520.68 | 4,575,943.36 | -57,080,577.32 | ||||||||
| 3.1 Total comprehensive income | 9,363,301.68 | 1,264,633,578.95 | 1,273,996,880.63 | -31,206.53 | 1,273,965,674.10 | ||||||||||
| 3.2 Capital contribution and withdrawal by shareholders | 40,875,956.38 | 100,704,439.97 | -59,828,483.59 | 4,607,149.89 | -55,221,333.70 | ||||||||||
| 3.2.1 Common shares contribution and withdrawal by shareholders | -140,051.00 | -140,051.00 | |||||||||||||
| 3.2.2 Capital contribution and withdrawal by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments included in shareholders’ equity | 40,875,956.38 | 40,875,956.38 | 89,797.88 | 40,965,754.26 | |||||||||||
| 3.2.4 Others | 100,704,439.97 | -100,704,439.97 | 4,657,403.01 | -96,047,036.96 | |||||||||||
| 3.3 Profit distribution | -1,275,824,917.72 | -1,275,824,917.72 | -1,275,824,917.72 | ||||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||||
| 3.3.2 Appropriation to general risk reserves | |||||||||||||||
| 3.3.3 Distribution to shareholders | -1,275,824,917.72 | -1,275,824,917.72 | -1,275,824,917.72 | ||||||||||||
| 3.3.4 Others | |||||||||||||||
| 3.4 Internal transfers within shareholders’ equity | 807.00 | -807.00 | |||||||||||||
| 3.4.1 Capital reserves transferred into |
| capital (or share capital) | |||||||||||||||
| 3.4.2 Surplus reserves transferred into capital (or share capital) | |||||||||||||||
| 3.4.3 Surplus reserves for making up losses | |||||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred into retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred into retained earnings | 807.00 | -807.00 | |||||||||||||
| 3.4.6 Others | |||||||||||||||
| 3.5 Special reserves | |||||||||||||||
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Others | |||||||||||||||
| 4. Balance as at the end of the period | 2,217,864,281.00 | 2,863,916,788.42 | 401,229,096.75 | -120,147,454.57 | 666,869,940.33 | 7,418,014,496.76 | 12,645,288,955.19 | 109,992,875.83 | 12,755,281,831.02 |
H1 2023
Unit: RMB
| Item | H1 2023 | ||||||||||||||
| Equity attributable to shareholders of the Company | Non-controlling interests | Total shareholders' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Retained earnings | Others | Sub-total | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| 1. Balance as at the end of prior year | 2,217,864,281.00 | 2,776,585,669.95 | 83,105,950.55 | -153,044,746.45 | 666,869,940.33 | 6,758,838,410.54 | 12,184,007,604.82 | 128,597,499.21 | 12,312,605,104.03 | ||||||
| Add: Adjustments for changed accounting policies | |||||||||||||||
| Adjustments for corrections of previous errors | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance as at beginning of year | 2,217,864,281.00 | 2,776,585,669.95 | 83,105,950.55 | -153,044,746.45 | 666,869,940.33 | 6,758,838,410.54 | 12,184,007,604.82 | 128,597,499.21 | 12,312,605,104.03 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 75,583,606.35 | 53,929,297.40 | 230,255,503.92 | 359,768,407.67 | -17,167,381.31 | 342,601,026.36 | |||||||||
| 3.1 Total comprehensive income | 53,929,297.40 | 1,226,061,335.07 | 1,279,990,632.47 | -18,808,388.18 | 1,261,182,244.29 | ||||||||||
| 3.2 Capital contribution and withdrawal by shareholders | 75,857,731.35 | 75,857,731.35 | 1,641,006.87 | 77,498,738.22 | |||||||||||
| 3.2.1 Common shares contribution and withdrawal by shareholders | 1,419,479.94 | 1,419,479.94 | |||||||||||||
| 3.2.2 Capital contribution and withdrawal by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments included in shareholders’ equity | 75,857,731.35 | 75,857,731.35 | 221,526.93 | 76,079,258.28 | |||||||||||
| 3.2.4 Others | |||||||||||||||
| 3.3 Profit distribution | -995,805,831.15 | -995,805,831.15 | -995,805,831.15 | ||||||||||||
| 3.3.1 Appropriation to surplus reserves | 0.00 | ||||||||||||||
| 3.3.2 Appropriation to general risk reserves | |||||||||||||||
| 3.3.3 Distribution to shareholders | -995,805,831.15 | -995,805,831.15 | -995,805,831.15 | ||||||||||||
| 3.3.4 Others | |||||||||||||||
| 3.4 Internal transfers within shareholders’ equity | |||||||||||||||
| 3.4.1 Capital reserves transferred into capital (or share capital) | |||||||||||||||
| 3.4.2 Surplus reserves transferred into capital (or |
| share capital) | |||||||||||||||
| 3.4.3 Surplus reserves for making up losses | |||||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred into retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred into retained earnings | |||||||||||||||
| 3.4.6 Others | |||||||||||||||
| 3.5 Special reserves | |||||||||||||||
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Others | -274,125.00 | -274,125.00 | -274,125.00 | ||||||||||||
| 4. Balance as at the end of the period | 2,217,864,281.00 | 2,852,169,276.30 | 83,105,950.55 | -99,115,449.05 | 666,869,940.33 | 6,989,093,914.46 | 12,543,776,012.49 | 111,430,117.90 | 12,655,206,130.39 |
8. Statement of Changes in Shareholders’ Equity of the Company
H1 2024
Unit: RMB
| Item | H1 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Retained earnings | Others | Total shareholders' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| 1. Balance as at the end of prior year | 2,217,864,281.00 | 6,468,587,957.50 | 300,524,656.78 | -60,000,000.00 | 1,108,932,140.50 | 4,846,565,105.07 | 14,281,424,827.29 | |||||
| Add: Adjustments for changed accounting policies | ||||||||||||
| Adjustments for corrections of previous errors | ||||||||||||
| Others | ||||||||||||
| 2. Balance as at beginning of year | 2,217,864,281.00 | 6,468,587,957.50 | 300,524,656.78 | -60,000,000.00 | 1,108,932,140.50 | 4,846,565,105.07 | 14,281,424,827.29 | |||||
| 3. Increase/ decrease in the period (“-” for decrease) | 40,965,754.26 | 100,704,439.97 | -1,267,182,905.22 | -1,326,921,590.93 | ||||||||
| 3.1 Total comprehensive income | 8,642,012.50 | 8,642,012.50 | ||||||||||
| 3.2 Capital contribution and withdrawal by shareholders | 40,965,754.26 | 100,704,439.97 | -59,738,685.71 | |||||||||
| 3.2.1 Common shares contribution and withdrawal by shareholders | ||||||||||||
| 3.2.2 Capital contribution and withdrawal by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in shareholders’ equity | 40,965,754.26 | 40,965,754.26 | ||||||||||
| 3.2.4 Others | 100,704,439.97 | -100,704,439.97 | ||||||||||
| 3.3 Profit distribution | -1,275,824,917.72 | -1,275,824,917.72 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Distribution to shareholders | -1,275,824,917.72 | -1,275,824,917.72 | ||||||||||
| 3.3.3 Others | ||||||||||||
| 3.4 Internal transfers within shareholders’ equity | ||||||||||||
| 3.4.1 Capital reserves transferred into capital (or share capital) | ||||||||||||
| 3.4.2 Surplus reserves transferred into capital (or share capital) | ||||||||||||
| 3.4.3 Surplus reserves for making up losses | ||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred into retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred into retained earnings | ||||||||||||
| 3.4.6 Others | ||||||||||||
| 3.5 Special reserves | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Others | ||||||||||||
| 4. Balance as at the end of the period | 2,217,864,281.00 | 6,509,553,711.76 | 401,229,096.75 | -60,000,000.00 | 1,108,932,140.50 | 3,579,382,199.85 | 12,954,503,236.36 |
H1 2023
Unit: RMB
| Item | H1 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Retained earnings | Others | Total shareholders' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| 1. Balance as at the end of prior year | 2,217,864,281.00 | 6,421,769,953.60 | 83,105,950.55 | -60,000,000.00 | 1,108,932,140.50 | 5,128,476,475.91 | 14,733,936,900.46 | |||||
| Add: Adjustments for changed accounting policies | ||||||||||||
| Adjustments for corrections of previous errors | ||||||||||||
| Others | ||||||||||||
| 2. Balance as at beginning of year | 2,217,864,281.00 | 6,421,769,953.60 | 83,105,950.55 | -60,000,000.00 | 1,108,932,140.50 | 5,128,476,475.91 | 14,733,936,900.46 | |||||
| 3. Increase/ decrease in the period (“-” for decrease) | 76,079,258.28 | -989,702,600.44 | -913,623,342.16 | |||||||||
| 3.1 Total comprehensive income | 6,103,230.71 | 6,103,230.71 | ||||||||||
| 3.2 Capital contribution and withdrawal by shareholders | 76,079,258.28 | 76,079,258.28 | ||||||||||
| 3.2.1 Common shares contribution and withdrawal by shareholders | ||||||||||||
| 3.2.2 Capital contribution and withdrawal by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in shareholders’ equity | 76,079,258.28 | 76,079,258.28 | ||||||||||
| 3.2.4 Others | ||||||||||||
| 3.3 Profit distribution | -995,805,831.15 | -995,805,831.15 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Distribution to shareholders | -995,805,831.15 | -995,805,831.15 | ||||||||||
| 3.3.3 Others | ||||||||||||
| 3.4 Internal transfers within shareholders’ equity | ||||||||||||
| 3.4.1 Capital reserves transferred into capital (or share capital) | ||||||||||||
| 3.4.2 Surplus reserves transferred into capital (or share capital) | ||||||||||||
| 3.4.3 Surplus reserves for making up losses | ||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred into retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred into retained earnings | ||||||||||||
| 3.4.6 Others | ||||||||||||
| 3.5 Special reserves | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Others | ||||||||||||
| 4. Balance as at the end of the period | 2,217,864,281.00 | 6,497,849,211.88 | 83,105,950.55 | -60,000,000.00 | 1,108,932,140.50 | 4,138,773,875.47 | 13,820,313,558.30 |