37 Interactive Entertainment Network
Technology Group Co. Ltd.2024 Interim Report
August 2024
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese ver sion shall prevail.
1Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of 37 Interactive Entertainment Network Technology Group
Co. Ltd. (hereinafter referred to as the “Company”) hereby guarantee the truthfulness accuracy
and completeness of the contents of this Report and shall be jointly and severally liable for any
misrepresentations misleading statements or material omissions therein.Xu Zhigao the Company’s legal representative and Ye Wei the Company’s Chief Financial
Officer & Board Secretary hereby guarantee that the financial statements carried in this Report
are 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 Report
shall not be deemed as earnings forecasts or promises to investors. Investors and other
stakeholders 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 in
software and IT services.The Board has approved an interim dividend plan as follows: 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 with no bonus issue from either profit or capital
reserves.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese ver sion shall prevail.
2Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese ver sion shall prevail.
3Part 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
Room 7001 7/F Tower B1 Wanjiang Room 7001 7/F Tower B1 Wanjiang
Office address Fortune Plaza 88 Ruixiang Road Wuhu City Fortune Plaza 88 Ruixiang Road Wuhu City
Anhui Province 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) 9231969089.44 7760573887.29 18.96%
Net profit attributable to the Listed
1264633578.951226061335.073.15%
Company’s shareholders (RMB)
Net profit attributable to the Listed
Company’s shareholders after deducting 1274632666.86 1115491118.74 14.27%
non-recurring profits and losses (RMB)
Net cash flows from operating activities
2129183514.992319957176.41-8.22%
(RMB)
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) 19331593556.82 19134551079.36 1.03%
Equity attributable to the Listed
12645288955.1912706945475.87-0.49%
Company’s shareholders (RMB)
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
4IV 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
-4556239.36
impairment allowance write-offs)
Government grants recognised in profit or loss (exclusive of those
that are closely related to the Company's normal business Mainly due to government
operations and given in accordance with defined criteria and in 27618921.23 grants other than the
compliance with government policies and have a continuing rebates of value-added tax
impact on the Company's profit or loss)
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 -20386773.03
hedges that is related to the Company's normal business
operations)
Reversed portions of impairment allowances for receivables
1400456.40
which are tested individually for impairment
Non-operating income and expenses other than the above -3189306.89
Less: Income tax effects 10874541.52
Non-controlling interests effects (net of tax) 11604.74
Total -9999087.91
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 Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profits and
Losses Items:
□ Applicable □ Not applicable
No such cases for the Reporting Period.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
5Part 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 game
industry maintained steady growth in the first half of this year. The actual sales revenue of China’s game market was RMB147. 267
billion a year-over-year (YoY) increase of 2.08%. During the same period there were 674 million game players in China with a
YoY 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 USD8.554
billion up 4.24% YoY. The US Japan and South Korea remained the major overseas markets for China’s mobile games accounting
for 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 a
rise 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 a
major trend in the global game industry. In China the number of applet games has surged offering a variety of genres theme s
and gameplay to meet players’ demands for lighter and more diverse forms of entertainment. This has injected new vita lity into
the game industry. According to the Report in the first half of 2024 applet mobile games recorded RMB16.603 billion in reve nue
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-quality
development in the industry.In July 2024 the Third Plenary Session of the Twentieth Central Committee of the Communist Party of China approved the
Decision of the Central Committee of the Communist Party of China on Further Deepening Reforms in a Comprehensive Way and
Promoting Chinese-Style Modernisation which put forward further requirements for improving the systems and mechanisms for
promoting 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 of
China on the Protection of Consumer Rights and Interests. This regulation further refines and adjusts the provisions regardin g
consumer rights and interests business obligations and penalties base d on the Law of the People’s Republic of China on the
Protection of Consumer Rights and Interests. The Company attaches great importance to compliance in both game operations
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
6and promotional activities. By continuously improving its internal systems for content compliance and risk control the Company
safeguards consumers’ rights and interests and strictly prevents risks. The Company has stringent review processes in place f or
user rights and interests protection account management personal data protection identification and handling. Additionally the
Company has established a dedicated customer service portal for complaints on its website. This has enabled quick and timely
handling 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-addiction
requirements required by competent authorities the Company has strengthened protection for minors by consistently improving
and upgrading its protection system for minors. We have always advanced various tasks in a proactive and positive manner to
ensure minors are well-protected in cyberspace. The Company has rolled out an upgraded version of the "real-name registration
and 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 our
customer service procedures and aided guardians in queries and verification all aimed at creating a clean and healthy
cyberspace for minors.The game industry continues to enhance the guiding role of online games in disseminating positive values and uplifting
content and drive healthy and orderly development. Against this background the unswerving pursuit of boutique premium and
healthy products in the industry has led to a constant stream of exceptional works substantially contributing to the preservation
and promotion of traditional Chinese culture.In response to national policies the Company has earnestly implemented management requirements. On one hand it
delved into the essence of traditional culture in game R&D and operational strategies. And it has sought to integrate cultural
significance into player experiences and apply innovative technologies. On the other hand the Company continuously excavated
historical 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 Company
incorporated Peking opera facial makeup Cantonese culture and the ancient Maritime Silk Road into its globally published game
Trading 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 tourism
scenarios to facilitate the promotion of cultural tourism in cities such as Guangzhou and Wuhu. The ultimate go al is to advance
the 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 technological
innovation 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 covering
medicine traditional Chinese medicine aerospace intangible cultural heritage and more to maximise the positive social imp act of
games by leveraging the unique interactivity and vividness of games. In this July the Company’s aerospace-themed educational
game Fei Tian Meng Xiang Qi Hang (飞天梦想启航) was awarded the “Best Innovative Social Value Award” at the 4th China Game
Innovation 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) the
Company played a significant role in drafting the association standard—Compliance Guidelines for Data Application of Generative
Artificial Intelligence. This standard offers companies a valuable reference for their compliant application of generative AI helping
to enhance their data security capabilities.The Company has remained focused on its core business and deepened its "integration of R&D and operation" strategy. We
have continued to enhance our capability of producing quality games solidify our core competitive edge in overseas expansion
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
7and explore possibilities of integrating technology into our business by leveraging resources both within and outside the technology
domain. With steady strides we have advanced high-quality and sustainable business development dedicated to offering the
public 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 development
brand “Three Seven Games” as well as professional game publishing brands “37Mobile” “37GAMES” and “37Online”. The
Company precisely grasped the industry development trends made continuous improvements in operation and remained a top
performer in the industry while adhering to the "boutiqueization diversification and globalization" strategy. For the Reporting
Period the Company recorded operating revenue of RMB 9.232 billion a YoY increase of 18.96% and a net profit attributable to its
shareholders after deducting non-recurring profits and losses of RMB 1.275 billion a YoY increase of 14.27%. The Company's
business development has accelerated significantly.
37 Interactive Entertainment
Three Seven Games 37Mobile 37GAMES 37Online
(game development) (publishing of mobile (overseas publishing) (publishing of mobile &
games) browser games)
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 the
demands of diverse user bases and continuously expanding its user base. By tapping into new markets and nurturing new growth
drivers we have continuously pushed back the boundaries of our game genres. In addition to delving into the existing four
primary genres: Massive multiplayer online role playing games (MMORPGs) strategy games gacha games and business
simulation games we have developed games where RPG casual and puzzle elements are incorporated. These diverse and
lightweight games have diversified player experiences.During the Reporting Report the Company celebrated the third anniversary of its self -developed card mobile game The Soul
Land: Hun Shi Dui Jue (斗罗大陆：魂师对决). To mark that special occasion the Company introduced new soul masters and
gameplay revolving around the “Tang San’s Journey to Becoming a God” storyline in the original work. This update evoked a
sense of nostalgia among users for the IP increasing the number of the game’s daily active users and prolonging the product life
cycle.Regarding the mobile game Fan Ren Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇) the Company launched its
anniversary version in mid-2024 which featured new content of the Immortality Chapter and was published using a traffic
management-centric approach. This has not only helped the Company expand its active user base but has also allowed it to
continuously improve the game’s ecosystem and enrich players’ experiences. The game has thus become a flagship product in the
Company’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 new
players through an engaging and nostalgic marketing approach and intellectual property (IP) collaborations. By creating a lon g-
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
8term 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 and
climb the ranks. This version has helped the Company expand its user base and prolong the game’s life cycle further
demonstrating 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 our
self-developed strategy mobile games on the theme of the Three Kingdoms. With a constant stream of creative materials this
game 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 Xun
Dao Da Qian (寻道大千). Combining teamwork-based social interaction with strategy gameplay this version featured deepened
content and increased engagement enhancing user stickiness. This version also saw an in -depth collaboration between the game
Xun 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 to
Immortality and the animated movie Ne Zha. The differentiated content and customised integration have offered pla yers
immersive experiences and new unique gameplay. As a result the game achieved long -term operation through brand
empowerment 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) the
self-developed game based on the Soul Land IP has displayed robust potential since its launch further reinforcing the Company's
competitive edge in the mini-game industry.Regarding the 3D realistic ant-themed strategy mobile game Underground Kingdom (小小蚁国) the Company has
continuously optimised its mechanics to help players gather resources more efficiently and make the overall gaming experience
more seamless. This optimisation has reduced the daily quest burden on players improved long-term player retention and
ensured steady operations.In August 2024 the modern-themed simulation mobile game Shi Guang Za Huo Dian (时光杂货店) was published by the
Company as the agent. Fully recreating the 1990s the game offers players a chance to relive childhood memories. To ensure
better immersive experiences for players the Company forged collaborations between the game and popular film and TV
productions. 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-term
services. It deeply integrates the highlights of its intellectual property (IP) to continuously innovate in terms of reflow methods
and activities consistently prolonging the product life cycle and igniting product vitality. During the Reporting Period the highest
monthly 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 launched
for 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 and
business simulation games and opened up opportunities in the casual game market thereby boosting the steady growth of our
overseas business.Puzzles & Survival a phenomenal product launched overseas by the Company integrates "Match -3 gameplay + SLG". It
demonstrates 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” version
released this year took players on a thrilling escape adventure using the design of volcanic eruptions and crises leading to
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
9increased player satisfaction for this version. Since its release in 2020 Puzzles & Survival has generated over RMB10 billio n in
gross 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 demands
through preliminary research and considering the R&D and operational capacity the Company has developed an immersive ant
world-themed version. In this version players build ant colonies fend off predators and lead their ant armies to conquer the
challenging natural environment securing victories one after another. These continuous breakthroughs have led to a steady rise
in player satisfaction.During the Reporting Period the Company continued to explore player preferences and market trends within the strategy
game genre to iterate high-quality products through theme diversification and gameplay differentiation. For example as an
iteration of Puzzles & Survival Puzzles & Chaos integrates “Match-3 gameplay + SLG” while retaining the core experiences of
Puzzles & Survival. Compared to its predecessor Puzzles & Chaos features greatly enhanced art design and special effects. Since
its launch the game has consistently broken new ground in overseas markets ranking among the top 20 strategy games in
different regions worldwide multiple times. Likewise in Mecha Domination a mechanised beast-themed mobile strategy game
launched in Europe and the US in April this year the highly free gameplay of beast capture and initial city-building simulation
have enhanced the sense of immersion attracting a diverse range of players and greatly expanding the user base of traditional
strategy games. These have earned the game a top five spot on the Google free strategy game chart in 23 countries and regions
on a cumulative basis.The Company has also implemented a strategy of "lightening hardcore games and intensifying light games" to create
differentiated competitive edges. For example?? M focuses on highlighting the core enjoyment through "simplification" thus
establishing a distinctive edge in the gaming experience. This approach has enabled the game to stand out in the fiercely
competitive mobile MMORPG market in South Korea contributing to sustained and robust gross billing. And this game has
become 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 excellent
traditional Chinese culture. This approach creates a communication method that resonates with diverse regional national and
audience groups promoting the global expression of Chinese stories. For example the ancient-style simulation mobile game
Trading 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 Legend
of 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) features
meticulously customised promotions in localities and thematic packaging. Through collaboration with popular fantasy IPs such as
Soul Land and A Record of a Mortal’s Journey to Immortality this game has contributed to cultural exchanges achieved
impressive market performance and garnered positive feedback from international players. These have laid a solid foundation
for 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 carefully
works out details regarding gameplay design art quality music effects etc. continues to invest in product iteration user
experience 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. Through
multi-dimensional approaches such as investment empowerment and business support the Company has carried out in -depth
collaborations with reputable game developers such as EyuGame and Yanqu Network. This approach has allowed the Company to
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
10accumulate 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 the
Three Kingdoms: Hong Hu Ba Ye (三国群英传：鸿鹄霸业) Mecha Domination Primal Conquest: Dino Era and Yes Your
Highness. 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 including
the Chinese comic oriental fantasy MMORPG The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界) the traditional Chinese ink
painting-themed business simulation game Zhui Xu (赘婿) and the picture book-style business simulation game on a Chinese
cultural theme Shi Guang Da Bao Zha (时光大爆炸). They are progressing towards launch. We hope to deliver diverse gaming
experiences to players.Certain key games in the pipeline are presented below:
Intended
Developer Name of game Game category theme and style publishing
area
The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎
Self-developed Chinese comic oriental fantasy MMORPG Global
魂世界)
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
Casual game with European and American cartoon
Self-developed Code M1 (代号 M1) Global
elements
Self-developed Code MR (代号 MR) Chibi-style RPG Global
Self-developed Code DLXD (代号 DLXD) Chibi-style fantasy RPG Global
Chibi-style fantasy tower defence game in the style of
Self-developed Code DLL (代号 DLL) Global
minimalist line art
Zhu Shen Huang Hun: Zheng Fu (诸神黄昏：
Agency Western fantasy MMORPG Global
征服)
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
Traditional Chinese ink painting-style business
Agency Zhui Xu (赘婿) Domestic
simulation game
Era-advancing picture book-style business simulation
Agency Shi Guang Da Bao Zha (时光大爆炸) Domestic
game on a Chinese cultural theme
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
business simulation game focusing on temporal travel
Agency Code Shang Tu (代号商途) Overseas
and business competition
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 technology
With 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
11processes. Second leveraging accumulated experience the Company has striven to achieve tool- and module-based
development thereby establishing a more automated and intelligent pipeline of game industrialisation. Third the Company has
explored 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 integrating
cutting-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 the
Company to enhance efficiency and accumulate a wealth of data and technological advantages over the years. We have bolstered
the tool-based and module-based development of our capabilities in alignment with our business procedures integrating
discriminant AI and generative AI into each process of our business. This has culminated in the development of a digitalised and
intelligent product portfolio that runs through our entire R&D and operational procedures. This portfolio covers platforms
including "Zeus" "Athena" "Poseidon" "Ares" and "Cupid" on the R&D end and "Turing" "Quantum" "Destiny" and "Yi Lan" o n
the 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 the
years the Company has experienced substantial efficiency improvements in 2D art-related tasks through AI empowerment with
a combined monthly output of over 280000 AI-generated 2D drawings across R&D and publishing business lines. In the concept
design process for characters the Company has implemented a new process of AI-generated 2D drawings resulting in an average
saving 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 studies
and applications including AI balance testing the translation of art materials AI imitation learning game Q&A assistant natural
language processing (NLP) public opinion analysis and data trend forecasting. Moreover AI algorithms have been employed to
capture 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
12capture equipment. This has enhanced both R&D efficiency and quality. Many of our self -developed products such as The Soul
Land: 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) have
benefited from the AI-assisted stat balance testing function resulting in improved player experiences and prolonged game life
cycles.AI technology has been deeply integrated into each business type of the Company notably enhancing the operational
efficiency 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 -making
features 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 each
employee using it 15 times per week on average the tool has improved the Company’s office collaboration and overall
operational efficiency substantially.Furthermore as to the exploration of AI's potential for enriching gameplay the Company is wholeheartedly embracing the
AI trend continually delving into novel gameplay mechanics and experiences internally. For example ongoing efforts are made by
the Company to research the development of an intelligent NPC system that integrates large language models AI voice and AI
motion capture technologies. The system aims to enhance character-player interaction. Meanwhile based on the multimodal
artificial intelligence generated content (AIGC) algorithm the Company is working to develop a platform for generating game
community content (such as game fight reports music and videos) thereby improving the quality and efficiency of content
creation within the game community. During the Reporting Period the Company developed a casual tile-matching game of which
the game plot materials voice-overs music and other elements were completed by AI and continued to explore the possibility
of 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 AI
technologies 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 about
transformations in industry technologies and ecosystems. Marching forwards steadily and surely we have insisted on a
progressive layout of AI applications and continuously iterated and optimised innovative tools in better alignment with the
Company's business development requirements. Furthermore taking into conside ration the requirements of each business
process 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 technological
transformation trend the Company advances both independent exploration and internal development. Meanwhile the Company
focuses its investment arrangements in such areas as foundational large models AIGC “AI + computility” and interactive sen sors.This approach helps the Company capture innovation opportunities for cutting-edge technologies and promote collaboration and
connection between its investment activities and principal business.The Company invests in large language models and application layers and continually explores the applicability of these
models to the Company’s R&D line. Specifically the Company has directly or indirectly invested in leading companies such a s
Zhipu AI Baichuan AI Moonshot AI aiXcoder DeepLang AI Yahaha Studio 51 and DeepMirror Technology. Supported by
foundational 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 as
CIX Tingyu Tech Huixi HYQ and Eeasy Tech. These investments aim to build an integrated industrial chain linking computil ity
infrastructure large language model algorithms and AI applications.The Company continuously monitors hardware and technological advancements with a strong focus on hard & core
technology and emphasises business synergy. It has invested in cultural entertainment and high -tech sectors such as
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
13computility 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 to
empower innovative and sustainable business growth through investments thereby forging new competitive edges in the
industry.(III) The Company’s principal operations and business models
The Company is principally engaged in the development publishing and operation of online games (mostly mobile and
browser games). The business models of the Company’s online games mainly include independent operation and third -party joint
operation.Under the independent operation mode the Company obtains the licenses of games through independent R&D or being an
operator of other games and publishes and operates these products through its own or third-party channels. The Company is fully
responsible for the operation promotion and maintenance of the games; providing unified management services for online
promotion online customer service and top-up payment; and updating games along with game developers based on the real -time
feedback of users and games.Under the third-party joint operation mode the Company cooperates with one or more game operators or game application
platforms to jointly operate games. And the aforesaid parties are responsible for the management of their own channels including
operation promotion the recharge and charge system while the Company provides technical support services along with game
developers.(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 the
Company is an excellent comprehensive entertainment prov ider in China’s A-stock market. It is a Key Cultural Export Company of
China Demonstration Base for China’s Cultural Industry Civilized Institution in Guangdong Province and Top 30 Cultural Ent erprise
of Guangzhou and MSCI ESG AA-rated company among others. With “bringing joy to the world” as its mission the Company is
dedicated to becoming an excellent and sustainable entertainment provider.During the Reporting Period the Company steadily advanced with the development strategy of “boutiqueizationdiversification and globalization” adhered to the strategy of "dual engines at home and abroad" as well as continuously pro moted
high-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 is
deeply involved in the front line of business working hard together with all the employees. Always upholding the spirit of
marathon-like perseverance the Company has been forging ahead with breakthroughs as well as pursuing better financial
results and faster growth while maintaining sound operation. Over the years the Company has demonstrated keen market
insight seizing emerging opportunities in the industry through a robust team of skilled professionals and sci entific management
mechanisms. Anticipating the "shift from web games to mobile games" in its early stages the Company spearheaded overseas
market penetration over a decade ago. Presently we remain aligned with the trend towards mini -games. Navigating numerous
industry transitions we have achieved sustained growth. Throughout the development the Company has consistently
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
14emphasised talent cultivation and team building. The Company has built a high-calibre talent pool. Through a scientific talent
promotion mechanism remuneration management system and performance incentive scheme the Company inspires employee
motivation 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 product
portfolio
The Company has continuously advanced its strategy of "integration of R&D and operation" deepened its dive rsified
product portfolio and established a robust and efficient multidimensional product supply system. First the Company has
consistently pushed back the boundaries of its self-development capabilities delved into core product categories and adopted a
global perspective to create a central supply layer with self -developed products at the core. Second through investment
empowerment and business support the Company has fostered deeper partnerships with numerous high -quality developers
both domestically and internationally continuously accumulating deeply customised premium products. Third by collaborating
with long-term and stable developers the Company has further refined its product offerings. Under this supply system the
Company has built a robust product supply chain continuously enriched the portfolio of high-quality products and drove steady
business growth.With the “integration of R&D and operation” model the Company can fully combine its strengths in product R&D and
operation. This on the one hand facilitates a deeper understanding of the market and user demands by the R&D team thereby
increasing the success rate of products under development. On the other through close collaboration between R&D and
operations teams the Company can optimise the updates and promotions of already launched products thus effectively
achieving long-term operation and prolonging product life cycles.
3. Publishing capabilities have been continuously iterated to facilitate long-term operation from a
global perspective
Over the years the Company's publishing team has successfully launched numerous quality games across diverse genres and
themes in global markets. During this journey we have kept abreast of the latest market trends and accordingly innovated our
marketing strategies. By employing various creative marketing strategies such as collaboration with renowned IP celebrity
endorsements and immersive storytelling we have established a long-term ecosystem revolving around user interactions thus
fortifying robust publishing barriers and facilitating the long-term operation of multiple products. Moreover the Company has
placed 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 ad
and operational platforms to boost promotional efficiency and effectiveness. The Company has made comprehensive
arrangements for digitalised and intelligent products on the publishing end. This has bolstered the Company's capabilities of
intelligent and sophisticated operations allowing the Company to effectively manage marketing expenses amplify publishing
effectiveness and prolong product life cycles.III Analysis of Principal Operations
Overview
See contents under the heading “I Principal Operations of the Company in the Reporting Period”.Year-over-year changes in key financial data:
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
15Unit: RMB
H1 2024 H1 2023 Change (%) Main reason for change
The Company's mobile games such as Xun Dao
Da Qian (寻道大千) Ba Ye (霸业) and Ling
Operating revenue 9231969089.44 7760573887.29 18.96%
Hun Xu Zhang (灵魂序章) performed well and
brought about a revenue boost.Increased cost of royalties as a result of
Cost of sales 1880723779.43 1664617407.90 12.98% increased revenue from agency games during
the Reporting Period
The Company continued to increase traffic
placement for games such as Xun Dao Da Qian
Distribution and selling (寻道大千) Ba Ye (霸业) Wu Ming Zhi Bei (无
5360351377.244279408761.5725.26%
expenses 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
295724089.56 257073397.84 15.03% Increased remunerations for the management
expenses
Decreased interest income from deposits and
increased exchange losses during the
Financial expenses -75004717.79 -111641061.71 32.82%
Reporting Period compared with the same
period last year
Income tax expenses 202945190.16 205127044.68 -1.06%
During the Reporting Period the Company
adjusted its staffing structure according to
strategic game categories increased
Research and development
350778127.57 388284125.67 -9.66% investment in strategic categories such as
investments
strategy games and reduced investment in the
research and development of certain non-
strategic categories.Net cash flows from
2129183514.992319957176.41-8.22%
operating activities
Increased net cash flows used in the purchase
Net cash flows used and recovery of wealth management products
-2253026693.16-1303177463.32-72.89%
in/from investing activities and term deposits during the Reporting Period
compared with the same period last year
Net cash flows used Increased dividend payout during the
-692657291.32-340841192.32-103.22%
in/from financing activities Reporting Period
Decreased net cash flows from investing and
Net increase in cash and
-840354079.38 681497084.43 -223.31% financing activities during the Reporting Period
cash equivalents
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
As % of operating As % of operating Change (%)
Amount Amount
revenue (%) revenue (%)
Total operating revenue 9231969089.44 100% 7760573887.29 100% 18.96%
By operating division
Online games 9231969089.44 100.00% 7760573887.29 100.00% 18.96%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
16By product category
Mobile games 8958803229.22 97.04% 7476618498.58 96.34% 19.82%
Browser games 213942038.14 2.32% 253306881.77 3.26% -15.54%
Others 59223822.08 0.64% 30648506.94 0.40% 93.24%
By operating segment
Domestic 6333847795.59 68.61% 4733223812.70 60.99% 33.82%
Overseas 2898121293.85 31.39% 3027350074.59 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
YoY change in YoY change YoY change in
Gross profit
Operating revenue Cost of sales operating in cost of gross profit
margin
revenue (%) sales (%) margin (%)
By operating division
Online games 9231969089.44 1880723779.43 79.63% 18.96% 12.98% 1.08%
By product category
Mobile games 8958803229.22 1703854828.37 80.98% 19.82% 7.65% 2.15%
Browser games 213942038.14 163352386.25 23.65% -15.54% 126.56% -47.89%
Others 59223822.08 13516564.81 77.18% 93.24% 38.84% 8.94%
By operating segment
Domestic 6333847795.59 1188851293.95 81.23% 33.82% 41.30% -0.99%
Overseas 2898121293.85 691872485.48 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
H1 2024 H1 2023
Breakdown of cost Change (%)
Amount As % of cost of sales Amount As % of cost of sales
Royalties 1712060939.88 91.04% 1495733421.12 89.86% 14.46%
Cost of servers 130404806.42 6.93% 97763750.37 5.87% 33.39%
Amortization of
24478393.741.30%45617203.762.74%-46.34%
copyright money
Other costs 13779639.39 0.73% 25503032.65 1.53% -45.97%
Total 1880723779.43 100.00% 1664617407.90 100.00% 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 Dao
Da 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 in
increased 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 copyright
cost 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 of
service charges.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
17IV Analysis of Non-principal Operations
□ Applicable □ Not applicable
Unit: RMB
As % of profit before Recurrent
Amount Reason/source
income tax expenses or not
Mainly due to gains and losses on long-term
equity investments accounted for using the
Investment income 62436738.05 4.25% equity method dividends during the period of No
holding equity investments and income from
investments in wealth management products
Gain/loss on changes in Mainly due to changes in fair value of equity
-34768367.03 -2.37% No
fair value investments and wealth management products
Impairment loss on
2073562.27 0.14% Mainly due to impairment loss on credit Yes
assets
Non-operating income 1426343.47 0.10% Mainly due to compensation income No
Mainly due to expenditure on donations and
Non-operating expenses 4615650.36 0.31% No
litigation damages
Mainly due to government grants that are
Other income 41785392.54 2.85% No
related to normal business operations
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2024 31 December 2023 Change in
As % of As % of percentage Reason for any significant change
Amount Amount
total assets total assets (%)
The ending balance was lower than
the beginning balance mainly due
to net cash outflows from investing
and financing activities. For furtherinformation see “II 5. ConsolidatedMonetary funds 3909071141.06 20.22% 6176992875.55 32.28% -12.06% Cash Flow Statement” “53. Cashflow statement items” and “54.Supplementary information for thecash flow statement” under NoteVII in “Part X FinancialStatements”.Accounts
1289722221.77 6.67% 1479267695.67 7.73% -1.06% No significant change
receivable
Long-term equity
503824014.75 2.61% 520735613.55 2.72% -0.11% No significant change
investments
Fixed assets 808382323.78 4.18% 823508284.60 4.30% -0.12% No significant change
No significant change occurred to
Construction in
775702455.39 4.01% 534491192.20 2.79% 1.22% this item as a percentage of total
progress
assets while the ending balance
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
18was higher than the beginning
balance mainly due to the
investments in the Guangzhou
Headquarters Building construction
project during the Reporting
Period.Right-of-use
12749140.01 0.07% 16622471.20 0.09% -0.02% No significant change
assets
Short-term loans 1763133888.90 9.12% 1554577083.34 8.12% 1.00% No significant change
Contract liabilities 290102426.56 1.50% 280023602.87 1.46% 0.04% No significant change
Mainly due to the repayment for
Long-term loans 80750000.00 0.42% 306000000.00 1.60% -1.18% bank loans that were over one year
during the Reporting Period
Lease liabilities 4920678.00 0.03% 3944589.05 0.02% 0.01% No significant change
Mainly due to the increased
balance of low-risk bank’s wealth
Trading financial management products and
2804612941.4414.51%2024681502.0310.58%3.93%
assets structured deposits that were
purchased by the Company for
higher return on capital
Prepayments 1040456754.16 5.38% 1143237497.90 5.97% -0.59% No significant change
Mainly due to the land lot
purchased by the Company in 2023
Intangible assets 1967049751.39 10.18% 1040204870.96 5.44% 4.74% being recognized as land use rights
for reason of the receipt of the
immovable property certificate
Goodwill 1578065048.53 8.16% 1578065048.53 8.25% -0.09% No significant change
Other non-current
2260434678.96 11.69% 2280577680.43 11.92% -0.23% No significant change
assets
Accounts payable 2017452437.79 10.44% 1825714480.74 9.54% 0.90% No significant change
Mainly due to the increased bank
Notes payable 1539000000.00 7.96% 1087000000.00 5.68% 2.28% acceptance bills paid to suppliers
during the Reporting Period
2. Major Assets Overseas
□ Applicable □ Not applicable
Material
Manag Return As % of the
Control measures to impairm
Asset Source Asset value (RMB) Location ement generated Company’s
protect asset safety ent risk
model (RMB) equity
or not
A sound business
supervision
Other Investments Hong Kong in
mechanism and a -
equity in overseas 440320629.57 China 3.48% No
sound risk control 24384910.96
assets companies Canada etc.mechanism have
been put in place
A sound business
Income from supervision
Hong Kong in
Monetary investments mechanism and a
1592672035.56 China the 12.59% No
funds and sound risk control
US etc.operations mechanism have
been put in place
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
193. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Gain/loss on Impairment
Cumulative fair-
fair-value allowance made Purchased in the Sold in the Other
Item Beginning amount value changes Ending amount
changes in the in the Reporting Reporting Period Reporting Period changes
through equity
Reporting Period Period
Financial assets
1. Trading financial assets
(exclusive of derivative 2024681502.03 -34685522.39 5791956371.09 4978318076.96 978667.67 2804612941.44
financial assets)
4. Other equity
247132794.34-240478042.75264936.50247397730.84
investments
5. Other non-current
825660687.40594215.10123731800.0032999370.52931900.32917919232.30
financial assets
Subtotal of financial
3097474983.77-34091307.29-240478042.755915688171.095011317447.482175504.493969929904.58
assets
Total of the above 3097474983.77 -34091307.29 -240478042.75 5915688171.09 5011317447.48 2175504.49 3969929904.58
Financial liabilities 74311.41 -677059.74 295426.44 641.38 456586.09
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 1129038633.80 Principals and interest of term deposits with a maturity within one year as pledges
Fixed assets 648512436.26 As collateral for bank loan to the Company
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
20Non-current assets due within one year 717568020.90 Principals and interest of term deposits with a maturity of over one year (due before June 2025) as pledges
Other non-current assets 363392404.76 Principals and interest of term deposits with a maturity of over one year as pledges
Total 2858511495.72
VI Principal Subsidiaries and Joint Stock Companies
□ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationshi
Registered Operating
Name p with the Principal activity Total assets Net assets Operating profit Net profit
capital revenue
Company
Development of
Anhui 37 Jiyu Network
Subsidiary mobile and browser 6250000.00 2640392806.45 2062594778.14 881727939.49 437748356.28 438283212.43
Technology Co. Ltd.games
37 Interactive Publishing and
10000000.0
Entertainment (Shanghai) Subsidiary operation of mobile 14724581652.51 5900189099.94 9236166416.53 1038651625.15 832967267.66
0
Technology Co. Ltd. games
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
In line with the Company’s strategic planning and helpful for its business
Shanghai Tingxiong Network Technology Co. Ltd. Acquisition in cash
development
In line with the Company’s strategic planning and helpful for its business
Guangdong Qianxing Zhiqing Venture Capital Partnership (L.P.) Entering into partnership
development
Other information on principal subsidiaries and joint stock companies:
N/A
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
21VII 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 a
series of major decisions and arrangements and issued a series of policies and regulations to guide the industry to develop
in a standardized and healthy way. For example clear new standards and requirements have been put forward for
protection of minors and anti-addiction of online games. Further strict management measures have been taken to promote
standardized management of game industry. At the same time information security and protection of users' privacy have
drawn much attention from the so ciety. In the long term the regulation of the online game industry is becoming more and
more standardized which is conducive to the healthy development of the industry. The enterprises with standardized
operation will benefit from it. However in the future if the Company fails to make corresponding adjustments timely in
accordance 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 relevan t 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 the
Company will strictly abide by various industry policies rules and regulations actively implement relevant requirements for
industry development establish an internal sound quality management and control mechanism strengthen industry policy
risk management capability and fully reduce and avoid the business risks caused by chan ges 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 online
game users are maturing with higher quality demand for game products. The industry is characteristic of fast product
transition limited product life cycle and volatile player preferences among others. Intense market competition will
challenge the Company’s development in terms of products and market channels.In response the Company will continue to implement the strategy of "boutiqueization diversification and
globalization". On the one hand it will strengthen its core competitiveness of i ts own business pay continuous attention to
self-research investment carry out R&D and innovation in product creativity gameplay theme art and technology and
keep up with industry technology development trend; at the same time it will maintain close cooperation with excellent
developers to guarantee the supply of quality pr oducts 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 the
Company will speed up the pace of exporting give full play to the edges of it in overseas markets face diversified operations
of overseas markets deepen the cul tivation 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 adjus t operational and R&D strategies to meet
the core demands of users further play the role of new ideas of digital marketing operation deepen the business strategy of
multi-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&D
ability channel operation ability product promotion ability user scale and market share. The Company will continue to
consolidate and cement its competi tive edges actively respond to changes in the industry reduce market competition risks
and 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 i ts core competitive
advantage. If the Company fails to effectively build a core talent team give reasonable incentives and manages the core
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
22personnel the employees’ enthusiasm and creativity will be affected which will have an adverse impact on the Company’s
core competitiveness.In response much attention has been attached to cultivation and acquisition of professional talents. The Company
creatively builds a platform-based talent management mechanism according to which excellent game producers are
rewarded with project bonus and given discretion of research and project concept creation. In order to attract and retain
outstanding 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. In
terms of employee performance management the Company has set up diversified KPIs based on employees' contribution
and ability as well as reasonable team objectives and innovative incentive activities to encourage employees’ creativity so
as 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 for
employees and help them grow rapidly. The Company actively carried out training for newcomers and professional abilities
such as "Marathon Leadership Training Camp" "Huangpu New Army" "X+ Plan" and "37TALK" promoted talent upgrading
to meet the needs of business upgrading paid attention to internal sharing established a team of internal professional
lecturers 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 welfare
system strengthened humanistic care and promoted retention of talents. The colourful welfare system encompasses
interest-free loan love fund commercial insurance and employee health management. During the Reporting Period the
Company 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 fund
of RMB20000 per child. In addition seasonal activities on holidays annual physical examination singles' fellowsh ip "Family
Day" "Boss Face-to-Face" "37 Battle Talk" "Carnival" “Healthy 37ers” and other thematic activi ties 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 and
mental 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 for
new types of products has emerged among young users. Against this backdrop if a game company fails to grasp the industry
development trend in a forward-looking manner and promptly innovate its technology and products its R&D and application
of 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. Fi rst it closely
followed industry changes and probed into cutting-edge technologies through investment layout to maintain sensitive to
leading technologies. Second it intensified the incubation of internal technologies valued investment in self -developed
games improved self-development system established an effective R&D system framework and introduced diversified
incentives to encourage employees to explore new technologies. By taking these actions the Company has reserved
technologies and products for the industry development trend.
5. Risk associated with being investigated by the China Securities Regulatory Commission with no clear conclusion yet
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
23On 27 June 2023 the Company Mr. Li Weiwei (the actual controller and Chairman of the Board of the Company) and
Mr. Zeng Kaitian (the Vice Chairman of the Board of the Company) received the "Notification of the China Securities
Regulatory Commission on Case Filing" (CSRC Case No. 03720230061 No. 03720230062 No. 03720230063) from the said
commission (hereinafter referred to as the "CSRC") respectively. For suspected information disclosure violations according
to the Securities Law of the People's Republic of China the Law of the People's Republic of China on Administrative
Penalties and other applicable laws and regulations the CSRC decided to file a case against the Company Li Weiwei and
Zeng Kaitian.During the period of investigation the Company will actively cooperate with the CSRC’s investigation and fulfil its
information disclosure obligations in strict accordance with applicable laws regulations and regulatory requirements.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
24Part IV Corporate Governance
I Annual and Extraordinary General Meetings of Shareholders Convened during the
Reporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
Investor Date of
Date of
Meeting Type participatio the Resolutions of the meeting
disclosure
n ratio meeting
1. The Proposal on the Plan for the Repurchase of Shares by
Means of Centralized Bidding was approved.
(1) Objective of the share repurchase
The First
Extraordinary (2) Share repurchase method and price range of shares to
Extraordinary
General 12 January 13 January be repurchased
General Meeting 46.61%
Meeting of
of Shareholders 2024 2024 (3) Type purpose total amount number and percentage to
Shareholders
of 2024 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
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
Annual approved;
The 2023 Annual
General 10 May 11 May 9. The Proposal on Adjustment of Allowance for
General Meeting 46.32%
Meeting of
of Shareholders 2024 2024
Independent Directors was approved;
Shareholders 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.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
252. Extraordinary General Meetings of Shareholders Convened at the Request of Preferred Shareholders
with 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 the
2023 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) 2217864281
Cash dividends (RMB) (tax inclusive) 465751499.01
Cash dividends in other forms (such as share repurchase) (RMB) 100704439.97
Total cash dividends (including those in other forms) (RMB) 566455938.98
Distributable profit (RMB) 3579382199.85
Total cash dividends (including those in other forms) as % of total
100%
profit to be distributed
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 inte rim 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 an d reasonable.IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable □ Not applicable
1. Equity Incentives
N/A
2. Implementation of Employee Stock Ownership Plans
□ Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
Number of Total number As % of the total
Awardee coverage Change Funding source
awardees of shares held share capital
Shares under the
The Third Employee Stock Ownership Plan: the
No more th employee stock
leadership team of the Company (directors 1161886 N/A 0.05%
an 400 ownership plan were
supervisors and senior management); chief transferred from
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
26officers and deputy chief officers; key repurchased shares
management and technological staff (mid- for no compensation.level employees); and other employees
approved by the Company
The Fourth Employee Stock Ownership Plan: Shares under the
the directors (exclusive of independent employee stock
directors) supervisors senior management No more ownership plan were
16301534 N/A 0.74%
key management and staff who have direct than 650 transferred from
and substantial impact on and contribution to repurchased shares
the Company’s future operations and growth for no compensation.Shares held by directors supervisors and senior management under employee stock ownership plans during the Reporting
Period:
Number of shares Number of shares
As % of the total
Name Office title held at the period- held at the period-
share capital
begin end
Xu Zhigao Yang Jun Liu Jun He Directors
Yang Cheng Lin Liu Fengyong Ye supervisors and 1585000 1585000 0.07%
Wei and Zhu Huaimin senior management
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 applicable
As at the end of the Reporting Period 1161886 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/A
Other information about employee stock ownership plans during the Reporting Period:
□ Applicable □ Not applicable
The second lock-up period of the Fourth Employee Stock Ownership Plan ended on 29 June 2024. As the 2023 annual
operating results failed to reach the target the unlockable shares of all the awardees in the second lock -up period of the
Employee 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 relevant
accounting treatments:
□ Applicable □ Not applicable
As per the Accounting Standard No. 11 for Business Enterprises—Share-based Payments the amortized share-based
payments were approximately RMB 40965800 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
27Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
28Part V Environmental and Social Responsibility
I Material Environmental Issues
Indicate whether the Company or any of its subsidiaries falls into major pollutant -discharge entities published by
environmental 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/A
Actions taken during the Reporting Period to reduce carbon emissions and the results:
□ Applicable □ Not applicable
Incorporating “sustainable development” into its corporate vision 37 Interactive Entertainment has established its
objective of achieving carbon neutrality within its scope of business operations by 2025. For that purpose the Company has
continuously optimised i ts carbon neutrality path. By conducting carbon footprint verification promoting green building
design 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 -carbon
transition.In advocating green and low-carbon practices the Company continues to organise internal environmental protection
month activities including environmental knowledge quizzes and wetland biodiversity conservation experiences. These
activities 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 the
Guangdong Nature Conservation Foundation and the Guangzhou Charity Federat ion to develop a public educational
platform for wetland conservation. This platform aims to educate primary and secondary school students using interactive
and 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 officially
validated by the Science Based Targets ini tiative (SBTi) a globally recognised climate action organisation. Pursuing the
ambitious goal of limiting global temperature increase to less than 1.5℃ outlined in the Paris Agreement the Company will
collaborate 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 authori ties. During the
Reporting 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. The
foundation aims to promote the high-quality and balanced development of high school education in counties and young
talent cultivation. For that purpose the foundation collaborates with teachers schools educational authorities charitable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
29organisations and corporate volunteers to empower promising rural talent with a focus on innovative t hinking cultural
knowledge and financial support.Through the Guangdong Youxin Chari ty 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 ethnic
minority gi rls the county high school free reading programme and the “Vocational Wisdom Calling” career planning
programme. Additionally the Company engages secondary school students in creative activities via its aerospace science
promotion platform—Fei Tian Meng Xiang Qi Hang (飞天梦想启航)—to encourage them to explore science with imagination
and creativity.During the Reporting Period 37 Interactive Entertainment supported 2628 outstanding high school students across
seven 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 “10000 Enterprises Revitalise 10000 Villages” initiative. The
Company leverages its strengths and connects resources to promote the growth of rural industries through collaboration. In
2024 the Company established industry assistance cooperation with Zhecheng Village in Wuwei City Anhui Province. Th e
cooperation focused on the local speciality—Zhecheng lotus seed. Through cultural creative plans multi -channel product
promotions and partnerships across the industrial chain the Company helped sell 2000 jin (approximately 1000 kilograms)
of lotus seeds boosting local farmers’ income.During the Reporting Period the Company invested over RMB 250000 to support the development of local industries
such 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 universi ties such as Sun Yat -sen University
Sichuan University and Lanzhou University. The cooperation focuses on resource sharing and complementation in such fields
as the application of cutting-edge technologies in the industry innovation competitions scholarships and grants specialised
research projects and themed campus-sharing sessions. By offering forward-looking and tailored education the Company
aims to nurture innovative talent that meets the demands of both the industry and society.During the Reporting Period the Company successfully wrapped up its thi rd “Sustainable Development InnovationChallenge for College and University Students”. This competition saw the participation of 766 students from over 90
universities across China. These participants created digital works focusing on cultural preservation and promotion rural
revitalisation and digital literacy education. The competi tion showcased the younger generation’s thoughts and responses
regarding sustainable social development. Ultimately three works from South China Normal University the Guangzhou
Academy of Fine Arts and the University of Science and Technology of China stood out for their innovation applicability and
keen 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 Party
Committee participated in 25 social volunteer service events. These events aimed to provide care for children with special
needs 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 -quality
development of China’s healthcare sector 37 Interactive Entertainment intends to donate RMB 5000000 to the First
Affiliated Hospital of Sun Yat-sen University. The third-phase donation of RMB1000000 was completed during the Reporting
Period.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
30Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
31Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares as dividend Shares as dividend
Percentage New
Number converted from converted from Other Subtotal Number Percentage (%)
(%) issues
profit capital reserves
1. Restricted shares 610515810 27.53% 2754578 2754578 613270388 27.65%
1.1 Shares held by the
government
1.2 Shares held by state-owned
corporations
1.3 Shares held by other
61051581027.53%2754578275457861327038827.65%
domestic investors
Including: Shares held by
domestic corporations
Shares held by domestic
61051581027.53%2754578275457861327038827.65%
natural persons
1.4 Shares held by overseas
investors
Including: Shares held by
overseas corporations
Shares held by
overseas natural persons
2. Un-restricted shares 1607348471 72.47% -2754578 -2754578 1604593893 72.35%
2.1 RMB-denominated common
160734847172.47%-2754578-2754578160459389372.35%
shares
2.2 Domestically listed foreign
shares
2.3 Overseas listed foreign shares
2.4 Others
3. Total shares 2217864281 100.00% 0 0 2217864281 100.00%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
32Reasons for share changes:
□ Applicable □ Not applicable
During the Reporting Period the shareholding increases by the Company’s di rectors and senior management were locked up accor ding to applicable laws regulations and
regulatory documents.Approval of share changes:
□ Applicable □ Not applicable
Transfer of share ownership:
□ Applicable □ Not applicable
Progress on share repurchases:
□ Applicable □ Not applicable
As of 31 July 2024 the Company had cumulatively repurchased 5626600 shares (or 0.25% of the total share capital) with its securities account for repurchased shares by the way
of 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 100691594 (exclusive of
transaction 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 financial
indicators of the prior year and the prior accounting period respectively:
□ Applicable □ Not applicable
During the Reporting Period the Company implemented share repurchases with its securi ties account f or repurchased shares by the way of centralized bidding. For details of the
repurchases see the announcements on repurchase progress. As per the Accounting Standards for Business Enterprises the afor esaid repurchased shares were excluded in the
calculation 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
332. Changes in Restricted Shares
□ Applicable □ Not applicable
Unit: share
Name of Beginning Shares with restriction lifted Increase in restricted shares Ending restricted Reason for
Lifting date
shareholder restricted shares in the Reporting Period in the Reporting Period shares restriction
Subject to regulations in respect of changes in
Locked-up shares of
Li Weiwei 242421239 0 0 242421239 shareholdings of directors supervisors and
senior management
senior management in the Company Law etc.Subject to regulations in respect of changes in
Locked-up shares of
Zeng Kaitian 184008280 0 847275 184855555 shareholdings of directors supervisors and
senior management
senior management in the Company Law etc.Subject to regulations in respect of changes in
Locked-up shares of
Hu Yuhang 151198263 0 0 151198263 shareholdings of directors supervisors and
senior management
senior management in the Company Law etc.Subject to regulations in respect of changes in
Locked-up shares of
Xu Zhigao 27340427 0 1907303 29247730 shareholdings of directors supervisors and
senior management
senior management in the Company Law etc.Subject to regulations in respect of changes in
Locked-up shares of
Yang Jun 1575000 0 0 1575000 shareholdings of directors supervisors and
senior management
senior management in the Company Law etc.Subject to regulations in respect of changes in
Locked-up shares of
Liu Jun 3972601 0 0 3972601 shareholdings of directors supervisors and
senior management
senior management in the Company Law etc.Total 610515810 0 2754578 613270388 -- --
II Issuance and Listing of Securities
□ Applicable □ Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
34Number of preferred shareholders with resumed voting
Number of common shareholders 184159 0
rights (if any) (see note 8)
5% or greater common shareholders or the top 10 common shareholders (exclusive of shares lent in refinancing)
Increase/decrease Restricted Pledged marked or frozen status
Nature of Shareholding Common Un-restricted common
Name of shareholder in the Reporting common
shareholder percentage shares held shares held Status Shares
Period shares held
Domestic natural
Li Weiwei 14.57% 323228319 0 242421239 80807080
person
Domestic natural
Zeng Kaitian 11.11% 246474074 1129700 184855555 61618519
person
Domestic natural
Hu Yuhang 9.09% 201597684 0 151198263 50399421 Pledged 24550000
person
Hong Kong Securities Clearing Overseas
6.26%138931229-1046789750138931229
Company Ltd. corporation
China Minsheng Banking Corp. Ltd.－
China Securities Cartoon Games
Other 1.94% 42994538 18124535 0 42994538
Trading Open-ended Index Securities
Investment Fund
Domestic natural
Xu Zhigao 1.76% 38996974 2543071 29247730 9749244
person
Domestic natural
Wu Weihong 1.59% 35253178 0 0 35253178
person
Domestic natural
Wu Weidong 1.00% 22091357 0 0 22091357
person
Shanghai Dongyonghong Business Domestic non-
Management Partnership (Limited state-owned 0.90% 20000000 0 0 20000000
Partnership) corporation
Industrial and Commercial Bank of
China Limited－Huatai-PineBridge CSI
Other 0.83% 18473429 6855600 0 18473429
300 Trading Open-ended Index
Securities Investment Fund
Strategic investor or general corporation becoming a top-
10 common shareholder in a rights issue (if any) (see note N/A
3)
1. Among the top 10 shareholders of the Company Wu Weihong Wu Weidong and Shanghai Dongyonghong Business Management
Related or acting-in-concert parties among the Partnership (Limited Partnership) are shareholders acting in concert.shareholders above 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
35entrusting/being entrusted with voting rights or waiving
voting rights
The Company had cumulatively repurchased 18166147 shares (or 0.82% of the total share capital as at 30 June 2024) with its securities
Special account for share repurchases (if any) among the
account for repurchased shares by the way of centralized bidding. The said account of repurchased shares is not listed as a t op 10 un-
top 10 shareholders (see note 11)
restricted common shareholder as required.Top 10 un-restricted common shareholders (exclusive of shares lent in refinancing and senior management’s locked-up shares)
Shares by class
Name of shareholder Un-restricted common shares held
Class Shares
RMB-denominated
Hong Kong Securities Clearing Company Ltd. 138931229 138931229
common shares
RMB-denominated
Li Weiwei 80807080 80807080
common shares
RMB-denominated
Zeng Kaitian 61618519 61618519
common shares
RMB-denominated
Hu Yuhang 50399421 50399421
common shares
China Minsheng Banking Corp. Ltd.－China Securities
RMB-denominated
Cartoon Games Trading Open-ended Index Securities 42994538 42994538
common shares
Investment Fund
RMB-denominated
Wu Weihong 35253178 35253178
common shares
RMB-denominated
Wu Weidong 22091357 22091357
common shares
Shanghai Dongyonghong Business Management RMB-denominated
2000000020000000
Partnership (Limited Partnership) common shares
Industrial and Commercial Bank of China Limited－
RMB-denominated
Huatai-PineBridge CSI 300 Trading Open-ended Index 18473429 18473429
common shares
Securities Investment Fund
37 Interactive Entertainment Network Technology Group RMB-denominated
1630153416301534
Co. Ltd.-The Fourth Employee Stock Ownership Plan common shares
Related or acting-in-concert parties among the top 10 un- 1. Among the top 10 shareholders of the Company Wu Weihong Wu Weidong and Shanghai Dongyonghong Business Management
restricted common shareholders as well as between the Partnership (Limited Partnership) are shareholders acting in concert.top 10 un-restricted common shareholders and the top 10 2. The Company is not aware of whether there is among the other top 10 shareholders any related parties or acting-in-concert parties
common shareholders as defined in the Measures on the Administration of Acquisition of Listed Companies.Top 10 common shareholders engaged in securities As of the end of the Reporting Period shareholder China Minsheng Banking Corp. Ltd.－China Securities Cartoon Games Trading Open-
margin trading (if any) (see note 4) ended Index Securities Investment Fund held 305400 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
36Unit: Share
5% or greater shareholders top 10 shareholders and top 10 un-restricted public shareholders involved in refinancing shares lending
Shares in the common account and Shares lent in refinancing and not Shares in the common account and Shares lent in refinancing and not
credit account at the period-begin yet returned at the period-begin credit account at the period-end yet returned at the period-end
Full name of shareholder
As % of total As % of total As % of total As % of total
Total shares Total shares Total shares Total shares
share capital share capital share capital share capital
China Minsheng Banking Corp. Ltd.－
China Securities Cartoon Games Trading
248700031.12%51674000.23%429945381.94%3054000.01%
Open-ended Index Securities
Investment Fund
Industrial and Commercial Bank of
China Limited－Huatai-PineBridge CSI
116178290.52%348000.00%184734290.83%0.000.00%
300 Trading Open-ended Index
Securities Investment Fund
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 Reporting
Period 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 Reporting
Period.□ Yes □ No
No such cases in the Reporting Period.IV Changes in the Shareholdings of Directors Supervisors and Senior Management
□ Applicable □ Not applicable
Beginning Increase in Ending Beginning Restricted shares Ending restricted
Incumbent/ Decrease in the
Name Office title shareholding the period shareholding restricted shares granted in the shares granted
Former period (share)
(share) (share) (share) granted (share) period (share) (share)
Zeng Kaitian Vice Chairman of the Board Incumbent 245344374 1129700 0 246474074 0 0 0
Xu Zhigao General Manager Incumbent 36453903 2543071 0 38996974 0 0 0
Total -- -- 281798277 3672771 0 285471048 0 0 0
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
37V Change of the Controlling Shareholder or Actual Controller
Change 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.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
38Part VII Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor
□ Yes □ No
They are unaudited by such an auditor.II Financial Statements
Currency 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 3909071141.06 6176992875.55
Transaction settlement funds
Loans to other banks
Trading financial assets 2804612941.44 2024681502.03
Derivative financial assets
Notes receivable
Accounts receivable 1289722221.77 1479267695.67
Accounts receivable financing
Prepayments 1040456754.16 1143237497.90
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 35787493.10 46247241.46
Including: Interest receivable
Dividends receivable 3363297.36 10000000.00
Redemptory monetary capital for sale
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 916503605.34 164307298.27
Other current assets 90703934.11 88085256.86
Total current assets 10086858090.98 11122819367.74
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 503824014.75 520735613.55
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
39Other equity investments 247397730.84 247132794.34
Other non-current financial assets 917919232.30 825660687.40
Investment properties
Fixed assets 808382323.78 823508284.60
Construction in progress 775702455.39 534491192.20
Productive living assets
Oil and gas assets
Right-of-use assets 12749140.01 16622471.20
Intangible assets 1967049751.39 1040204870.96
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 1578065048.53 1578065048.53
Long-term deferred expenses 93399383.85 90785937.93
Deferred income tax assets 79811706.04 53947130.48
Other non-current assets 2260434678.96 2280577680.43
Total non-current assets 9244735465.84 8011731711.62
Total assets 19331593556.82 19134551079.36
Current liabilities:
Short-term loans 1763133888.90 1554577083.34
Loans from the central bank
Loans from other banks
Trading financial liabilities 456586.09 74311.41
Derivative financial liabilities
Notes payable 1539000000.00 1087000000.00
Accounts payable 2017452437.79 1825714480.74
Advances from customers
Contract liabilities 290102426.56 280023602.87
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 257164937.24 408786174.15
Taxes payable 173170504.02 280471436.39
Other payables 199468090.24 201521074.52
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within one year 83628350.02 212167632.34
Other current liabilities 60229306.00 55277993.63
Total current liabilities 6383806526.86 5905613789.39
Non-current liabilities:
Insurance contract reserve
Long-term loans 80750000.00 306000000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 4920678.00 3944589.05
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 106834520.94 106630292.58
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
40Other non-current liabilities
Total non-current liabilities 192505198.94 416574881.63
Total liabilities 6576311725.80 6322188671.02
Shareholders' equity:
Share capital 2217864281.00 2217864281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2863916788.42 2823040832.04
Less: Treasury shares 401229096.75 300524656.78
Other comprehensive income -120147454.57 -129511563.25
Special reserves
Surplus reserves 666869940.33 666869940.33
General risk reserves
Retained earnings 7418014496.76 7429206642.53
Total equity attributable to shareholders of the
12645288955.1912706945475.87
Company
Non-controlling interests 109992875.83 105416932.47
Total shareholders' equity 12755281831.02 12812362408.34
Total liabilities and shareholders’ equity 19331593556.82 19134551079.36
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 165117598.57 802609416.49
Trading financial assets 1402777753.42 800986301.37
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 493394.04 66418.86
Other receivables 1998389579.53 3679202452.33
Including: Interest receivable
Dividends receivable 146713.60
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 7207139.11 7068190.52
Total current assets 3573985464.67 5289932779.57
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 9699640055.87 9659679501.59
Other equity investments
Other non-current financial assets 80738178.41 76589599.00
Investment properties
Fixed assets
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
41Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 3542376.48 4605089.46
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets 693817.41
Other non-current assets
Total non-current assets 9784614428.17 9740874190.05
Total assets 13358599892.84 15030806969.62
Current liabilities:
Short-term loans 200133888.90 200155833.34
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 27895.92
Advances from customers
Contract liabilities
Employee benefits payable 64060.00 30200.00
Taxes payable 12158027.82 11281109.24
Other payables 33047264.81 28901705.53
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 75331885.91 200318482.28
Other current liabilities
Total current liabilities 320763023.36 440687330.39
Non-current liabilities:
Long-term loans 80750000.00 306000000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2583633.12 2552367.43
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 142444.51
Other non-current liabilities
Total non-current liabilities 83333633.12 308694811.94
Total liabilities 404096656.48 749382142.33
Shareholders' equity:
Share capital 2217864281.00 2217864281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 6509553711.76 6468587957.50
Less: Treasury shares 401229096.75 300524656.78
Other comprehensive income -60000000.00 -60000000.00
Special reserves
Surplus reserves 1108932140.50 1108932140.50
Retained earnings 3579382199.85 4846565105.07
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
42Total shareholders' equity 12954503236.36 14281424827.29
Total liabilities and shareholders’ equity 13358599892.84 15030806969.62
3. Consolidated Income Statement
Unit: RMB
Item H1 2024 H1 2023
1. Total operating revenue 9231969089.44 7760573887.29
Including: Operating revenue 9231969089.44 7760573887.29
Interest income
Premium income
Handling charge and commission
income
2. Total operating costs and expenses 7832939934.89 6492830653.62
Including: Cost of sales 1880723779.43 1664617407.90
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 20367278.88 15088022.35
Distribution and selling expenses 5360351377.24 4279408761.57
General and administrative expenses 295724089.56 257073397.84
Research and development expenses 350778127.57 388284125.67
Financial expenses -75004717.79 -111641061.71
Including: Interest expense 40576529.74 33953476.02
Interest income 128780026.36 147092025.34
Add: Other income 41785392.54 67310526.91
Investment income (“-” for loss) 62436738.05 -3937725.83
Including: Share of profits and losses of
-12407533.87-12257097.35
joint ventures and associates
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) -34768367.03 66445566.71
Impairment loss on credit (“-” for loss) 2073562.27 350866.28
Impairment loss on assets (“-” for loss)
Gain on disposal of assets (“-” for loss) 180389.09 128077.35
3. Operating profit (“-” for loss) 1470736869.47 1398040545.09
Add: Non-operating income 1426343.47 17988142.97
Less: Non-operating expenses 4615650.36 3648696.49
4. Profit before income tax expenses (“-” for loss) 1467547562.58 1412379991.57
Less: Income tax expenses 202945190.16 205127044.68
5. Net profit (“-” for net loss) 1264602372.42 1207252946.89
5.1 Classified by continuity of operations
5.1.1 Net profit from continuing operations (“-”
1264602372.421207252946.89
for net loss)
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
1264633578.951226061335.07
the Company (“-” for net loss)
5.2.2 Net profit attributable to non-controlling -31206.53 -18808388.18
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
43interests (“-” for net loss)
6. Other comprehensive income net of tax 9364108.68 53929297.40
Other comprehensive income attributable to
9364108.6853929297.40
shareholders of the Company net of tax
6.1 Other comprehensive income that will not
807.00
be reclassified subsequently to profit or loss
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
807.00
equity investments
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
9363301.6853929297.40
reclassified subsequently to profit or loss
6.2.1 Share of the other comprehensive
income of the investee accounted for using equity
-524693.70
method that will be reclassified subsequently to
profit or loss
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
9363301.6854453991.10
translation of foreign currency financial statements
6.2.7 Others
Other comprehensive income attributable to non-
controlling interests net of tax
7. Total comprehensive income 1273966481.10 1261182244.29
Total comprehensive income attributable to
1273997687.631279990632.47
shareholders of the Company
Total comprehensive income attributable to
-31206.53-18808388.18
non-controlling interests
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 the
acquirees 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 9433.96
Less: Cost of sales 0.00 0.00
Taxes and surcharges 23538.06 40349.85
Distribution and selling expenses
General and administrative expenses 3549968.63 7355482.54
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
44Research and development expenses
Financial expenses 5367745.74 -1188161.14
Including: Interest expense 12328004.75 11116569.01
Interest income 7710432.20 12897500.79
Add: Other income 2294998.75 4454284.28
Investments income (“-” for loss) 2448220.44 1212602.75
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) 13939894.49 9087945.21
Impairment loss on credit (“-” for loss)
Impairment loss on assets (“-” for loss)
Gain on disposal of assets (“-” for loss)
2. Operating profit (“-” for loss) 9741861.25 8556594.95
Add: Non-operating income 98521.32 1478.73
Less: Non-operating expenses 1.80
3. Profit before income tax expenses (“-” for loss) 9840380.77 8558073.68
Less: Income tax expenses 1198368.27 2454842.97
4. Net profit (“-” for net loss) 8642012.50 6103230.71
4.1 Net profit from continuing operations (“-”
8642012.506103230.71
for net loss)
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 8642012.50 6103230.71
7. Earnings per share:
7.1 Basic earnings per share
7.2 Diluted earnings per share
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
455. 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
9620114536.938013861147.65
rendering services
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 719485.79 1719882.70
Cash received relating to other operating
139944356.80148031300.57
activities
Sub-total of cash inflows from operating activities 9760778379.52 8163612330.92
Cash paid for purchases of goods and services 1702546188.13 1473884579.03
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 927266621.10 887376046.67
Payments of taxes and levies 398069513.84 379073806.45
Cash paid relating to other operating activities 4603712541.46 3103320722.36
Sub-total of cash outflows used in operating
7631594864.535843655154.51
activities
Net cash flows from operating activities 2129183514.99 2319957176.41
2. Cash flows from investing activities:
Cash received from disposal of investments 43752606.12 127010330.31
Cash received from investment income 210370371.13 78491745.68
Cash received from disposal of fixed assets
469762.921499959.98
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
and other business units
Cash received relating to other investing
9639667817.187872668719.59
activities
Sub-total of cash inflows from investing activities 9894260557.35 8079670755.56
Cash paid for acquisition of fixed assets
342930122.81139259591.32
intangible assets and other long-term assets
Cash paid to acquire investments 327682116.26 117602305.30
Net increase in pledged loans granted
Net cash paid for the acquisition of subsidiaries 49991.06 26589.40
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
46and other business units
Cash paid relating to other investing activities 11476625020.38 9125959732.86
Sub-total of cash outflows used in investing
12147287250.519382848218.88
activities
Net cash flows from/used in investing activities -2253026693.16 -1303177463.32
3. Cash flows from financing activities:
Cash received from capital contributions 320000.00
Including: Cash received from capital
contributions by non-controlling interests of 320000.00
subsidiaries
Cash received from borrowings 1753000000.00 1426000000.00
Cash received relating to other financing
873000000.0065000000.00
activities
Sub-total of cash inflows from financing activities 2626000000.00 1491320000.00
Cash repayments of borrowings 1894380000.00 222250000.00
Cash paid for interest and dividends 1316399138.66 1028631589.17
Including: Dividends paid by subsidiaries to
non-controlling interests
Cash paid relating to other financing activities 107878152.66 581279603.15
Sub-total of cash outflows used in financing
3318657291.321832161192.32
activities
Net cash flows from/used in financing activities -692657291.32 -340841192.32
4. Effect of foreign exchange rate changes on cash
-23853609.895558563.66
and cash equivalents
5. Net increase/decrease in cash and cash
-840354079.38681497084.43
equivalents
Add: Cash and cash equivalents at beginning of
2745481726.823320472098.94
the period
6. Cash and cash equivalents at end of the period 1905127647.44 4001969183.37
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
10000.00
rendering services
Refunds of taxes and levies
Cash received relating to other operating
2098673269.471117210020.74
activities
Sub-total of cash inflows from operating activities 2098673269.47 1117220020.74
Cash paid for purchases of goods and services
Cash paid to and on behalf of employees 189244.00 1501203.60
Payments of taxes and levies 2616846.16 3912982.44
Cash paid relating to other operating activities 406244582.28 627828879.40
Sub-total of cash outflows used in operating
409050672.44633243065.44
activities
Net cash flows from/used in operating activities 1689622597.03 483976955.30
2. Cash flows from investing activities:
Cash received from disposal of investments
Cash received from investment income 14947619.87 17239041.11
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
2400000000.002400000000.00
activities
Sub-total of cash inflows from investing activities 2414947619.87 2417239041.11
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
47Cash 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 2700000000.00 2380000000.00
Sub-total of cash outflows used in investing
2700000000.002380000000.00
activities
Net cash flows from/used in investing activities -285052380.13 37239041.11
3. Cash flows from financing activities:
Cash received from capital contributions
Cash received from borrowings 300000000.00 490000000.00
Cash received relating to other financing
activities
Sub-total of cash inflows from financing activities 300000000.00 490000000.00
Cash repayments of borrowings 650000000.00 14250000.00
Cash paid for interest and dividends 1288380197.59 1006413029.76
Cash paid relating to other financing activities 100704439.97 0.00
Sub-total of cash outflows used in financing
2039084637.561020663029.76
activities
Net cash flows from/used in financing activities -1739084637.56 -530663029.76
4. Effect of foreign exchange rate changes on cash
and cash equivalents
5. Net increase/decrease in cash and cash
-334514420.66-9447033.35
equivalents
Add: Cash and cash equivalents at beginning of
499632019.23205561434.10
the period
6. Cash and cash equivalents at end of the period 165117598.57 196114400.75
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
487. Consolidated Statement of Changes in Shareholders’ Equity
H1 2024
Unit: RMB
H1 2024
Equity attributable to shareholders of the Company
Other equity
Item Spe Gener Non- Total instruments Less: Other Ot
Capital cial Surplus al risk Retained controlling sharehold
Share capital Preferr Perpet Treasury comprehensiv he Sub-total
Othe reserves rese reserves reserv earnings interests ers' equity
ed ual shares e income rs
rs rves es
shares bonds
1. Balance as at
22178642812823040832300524656668699474292066421270694541054169312812362
the end of prior -129511563.25
year .00 .04 6.78 0.33 .53 75.87 2.47 408.34
Add:
Adjustments for
changed
accounting
policies
Adjustments for
corrections of
previous errors
Others
2. Balance as at
22178642812823040832300524656668699474292066421270694541054169312812362
beginning of -129511563.25
year .00 .04 6.78 0.33 .53 75.87 2.47 408.34
3. Increase/
--
decrease in the 10070443 - 4575943.3
40875956.389364108.6861656520.657080577.
period (“-” for 9.97 11192145.77 6
decrease) 8 32
3.1 Total
126463357812739968812739656
comprehensive 9363301.68 -31206.53
income .95 0.63 74.10
3.2 Capital
--
contribution 10070443 4607149.8
40875956.3859828483.555221333.
and withdrawal 9.97 9
by shareholders 9 70
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
493.2.1 Common
shares
contribution -140051.00 -140051.00
and withdrawal
by shareholders
3.2.2 Capital
contribution
and withdrawal
by holders of
other equity
instruments
3.2.3 Share-
based payments
40875956.340965754.
included in 40875956.38 89797.88
shareholders’ 8 26
equity
--
100704434657403.0
3.2.4 Others 100704439. 96047036.
9.971
9796
---
3.3 Profit
127582491712758249112758249
distribution.727.7217.72
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general risk
reserves
3.3.3---
Distribution to 1275824917 127582491 12758249
shareholders .72 7.72 17.72
3.3.4 Others
3.4 Internal
transfers within
807.00-807.00
shareholders’
equity
3.4.1 Capital
reserves
transferred into
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
50capital (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
807.00-807.00
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
22178642812863916788401229096668699474180144961264528891099928712755281
the end of the -120147454.57
period .00 .42 6.75 0.33 .76 55.19 5.83 831.02
H1 2023
Unit: RMB
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
51H1 2023
Equity attributable to shareholders of the Company
Other equity
Item Specia Gener Non- Total instruments Less: Other Ot
Capital l Surplus al risk Retained controllin shareholde
Share capital Prefer Perpet Treasury comprehensi her Sub-total
Othe reserves reserv reserves reserv earnings g interests rs' equity
red ual shares ve income s
rs es es
shares bonds
1. Balance as at -
221786428127765856698310595666869946758838411218400761285974912312605
the end of prior 153044746.4
year .00 .95 0.55 0.33 0.54 04.82 9.21 104.03 5
Add:
Adjustments for
changed
accounting
policies
Adjustments for
corrections of
previous errors
Others
2. Balance as at -
221786428127765856698310595666869946758838411218400761285974912312605
beginning of 153044746.4
year .00 .95 0.55 0.33 0.54 04.82 9.21 104.03 5
3. Increase/
-
decrease in the 230255503. 359768407. 342601026
75583606.3553929297.4017167381.
period (“-” for 92 67 .36
decrease) 31
3.1 Total -
12260613312799906312611822
comprehensive 53929297.40 18808388.income 5.07 2.47 44.29 18
3.2 Capital
contribution 75857731.3 1641006.8 77498738.
75857731.35
and withdrawal 5 7 22
by shareholders
3.2.1 Common
shares
1419479.91419479.9
contribution
and withdrawal 4 4
by shareholders
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
523.2.2 Capital
contribution
and withdrawal
by holders of
other equity
instruments
3.2.3 Share-
based
payments 75857731.3 76079258.
75857731.35221526.93
included in 5 28
shareholders’
equity
3.2.4 Others
---
3.3 Profit
995805831.995805831.995805831
distribution
1515.15
3.3.1
Appropriation
0.00
to surplus
reserves
3.3.2
Appropriation
to general risk
reserves
3.3.3---
Distribution to 995805831. 995805831. 995805831
shareholders 15 15 .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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
53share 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 -274125.00 -274125.00 -274125.00
4. Balance as at
221786428128521692768310595666869946989093911254377601114301112655206
the end of the -99115449.05
period .00 .30 0.55 0.33 4.46 12.49 7.90 130.39
8. Statement of Changes in Shareholders’ Equity of the Company
H1 2024
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
54Unit: RMB
H1 2024
Item Other equity instruments Other Total Less: Treasury Special Surplus Retained Oth
Share capital Preferre Perpetu Oth Capital reserves comprehensi shareholders'
shares reserves reserves earnings ers
d shares al bonds ers ve income equity
1. Balance as at the
2217864281.006468587957.50300524656.78-60000000.001108932140.504846565105.0714281424827.29
end of prior year
Add:
Adjustments for
changed accounting
policies
Adjustments for
corrections of
previous errors
Others
2. Balance as at
2217864281.006468587957.50300524656.78-60000000.001108932140.504846565105.0714281424827.29
beginning of year
3. Increase/ decrease
in the period (“-” for 40965754.26 100704439.97 -1267182905.22 -1326921590.93
decrease)
3.1 Total
comprehensive 8642012.50 8642012.50
income
3.2 Capital
contribution and
40965754.26100704439.97-59738685.71
withdrawal by
shareholders
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 40965754.26 40965754.26
shareholders’ equity
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
553.2.4 Others 100704439.97 -100704439.97
3.3 Profit
-1275824917.72-1275824917.72
distribution
3.3.1 Appropriation
to surplus reserves
3.3.2 Distribution to
-1275824917.72-1275824917.72
shareholders
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
2217864281.006509553711.76401229096.75-60000000.001108932140.503579382199.8512954503236.36
end of the period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
56H1 2023
Unit: RMB
H1 2023
Item Other equity instruments Other Special Total Less: Treasury Retained Oth
Share capital Preferre Perpetua Othe Capital reserves comprehensiv reserv Surplus reserves shareholders'
shares earnings ers
d shares l bonds rs e income es equity
1. Balance as at the
2217864281.006421769953.6083105950.55-60000000.001108932140.505128476475.9114733936900.46
end of prior year
Add: Adjustments
for changed accounting
policies
Adjustments
for corrections of
previous errors
Others
2. Balance as at
2217864281.006421769953.6083105950.55-60000000.001108932140.505128476475.9114733936900.46
beginning of year
3. Increase/ decrease
in the period (“-” for 76079258.28 -989702600.44 -913623342.16
decrease)
3.1 Total
6103230.716103230.71
comprehensive income
3.2 Capital
contribution and
76079258.2876079258.28
withdrawal by
shareholders
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 76079258.28 76079258.28
shareholders’ equity
3.2.4 Others
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
573.3 Profit distribution -995805831.15 -995805831.15
3.3.1 Appropriation to
surplus reserves
3.3.2 Distribution to
-995805831.15-995805831.15
shareholders
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
2217864281.006497849211.8883105950.55-60000000.001108932140.504138773875.4713820313558.30
end of the period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
58
