Stock Code: 603444 Stock Name: G-bits
G-bits Network Technology (Xiamen) Co. Ltd.
2023 Annual Report (Summary)
March 2024
Should there be any discrepancy between the English version and the Chinese version of this Report
the Chinese version shall prevail.Part I Important Notes
I. The summary of the Annual Report is extracted from the full text of the Annual Report.To gain a thorough understanding of the Company's operational achievements financial
status and future development plans investors are advised to carefully read the full
Annual Report on the website www.sse.com.cn.II. The board of directors (or the “Board”) supervisory board directors supervisors and
senior management of the Company guarantee the truthfulness accuracy and
completeness of the annual report ensuring that there are no false records misleading
statements or material omissions. They also bear individual and joint legal
responsibilities.III. All directors of the Company attended the board meeting for the review of the Annual
Report.IV. KPMG Huazhen LLP has issued a standard unqualified audit opinion for the Company.V. The profit distribution proposal or reserve capitalization proposal for the Reporting
Period approved by the Board of directors
In recent years the number of R&D personnel in the Company has been continuously
increasing. By the end of 2021 2022 and 2023 the company had 530 692 and 855 R&D
personnel respectively with a sustained increase in R&D investment. However due to factors
such as intensified market competition and changes in consumer willingness to spend the core
product revenue of the Company experienced a decline. Taking into account the aforementioned
factors as well as the potential capital investment in subsequent reserve projects the capital
needs for overseas business development and the funding requirements for the execution of
repurchase plans the Board of Directors of the Company at its 20th meeting of the 5th session
deliberated and decided not to distribute cash dividends for the year 2023 nor to distribute profits
in any other form.To share the operational achievements and boost investor confidence it is proposed to
authorize the Board of Directors to decide on the mid-term profit distribution plan for 2024
2(including the semi-annual and first three quarters) under the following conditions and implement
it within the specified period: (1) The Company is profitable for the period and the accumulated
undistributed profits are positive. After evaluating the current operating conditions and the funds
required for sustainable future development the Board of Directors deems the funds to be
sufficient and it is suitable to distribute cash dividends for the period; (2) The cumulative amount
of cash dividends during the period shall not exceed 100% of the net profit attributable to
shareholders of the Company.The above proposal is subject to approval by the shareholders' meeting.The Company completed the cash dividend distribution for the 2023 interim period on
September 27 2023 totaling RMB 504 million. The cash dividend amount for the full year 2023
accounted for 44.82% of net profit attributable to shareholders of the Company in the Company's
2023 consolidated financial statements.
3Part II Basic Information of the Company
I. Company Profile
Stock Profile
Previous Stock
Types of Stocks Stock Exchange Stock Name Stock Code
Name
Shanghai Stock
A-shares G-bits 603444 N/A
Exchange
Securities Affairs
Contact Information Board Secretary
Representative
Name LIANG Lili CAI Luxi
Telephone 0592-3213580 0592-3213580
G-bits Building No.4 Wang Hai G-bits Building No.4 Wang Hai
Office Address
Road Software Park II Xiamen Road Software Park II Xiamen
Email ir@g-bits.com ir@g-bits.com
II. Key Accounting Data and Financial Indicators of the Company
(I) Key Accounting Data and Financial Indicators for the Past 3 Years
Unit: RMB Yuan
Item 31 December 2023 31 December 2022 YoY+/- (%) 31 December 2021
Total assets 6636771238.42 6490420298.78 2.25 7103275522.22
Equity attributable to
shareholders of the 4463842027.96 3978734566.03 12.19 4580137503.55
Company
Item 2023 2022 YoY+/- (%) 2021
Operating revenue 4184851388.03 5167615488.17 -19.02 4619046080.80
Net profit attributable
to shareholders of 1125119212.35 1460874459.68 -22.98 1468498092.21
the Company
Net profit attributable
to shareholders of
the Company after
1118962328.861468317227.00-23.791225770911.42
deducting non-
recurring profits and
losses
Net cash flows from
1185500983.671752393962.54-32.352418288430.93
operating activities
a decrease
Weighted average of 6.45
26.0432.4935.97
return on equity (%) percentage
points
Basic earnings per
15.6320.33-23.1220.43
share (RMB/share)
4Description:
i. Overview of Main Game Revenue and Profits
1. Domestic Game Business
(1) The operating revenue and profit of Asktao (PC) this year remained basically flat
compared to last year;
(2) The operating revenue of Asktao (Mobile) this year decreased compared to last
year with distribution expenses remaining basically stable resulting in a decrease in overall profit
compared to last year;
(3) The operating revenue and distribution expenses of Overmortal (Mainland Version)
decreased significantly compared to last year. However the decrease in operating revenue
compared to the decrease in distribution expenses was greater this year resulting in a significant
decrease in overall profit compared to last year;
(4) Aobi Island: Dreamland was launched in July 2022. The operating revenue this
year decreased compared to last year but the decrease in distribution expenses this year was
greater (mainly due to the large distribution expenses at the initial launch in 2022). The product
profits turned losses into profits this year;
(5) Dragon POW! was launched in August 2023 contributing incremental revenue.
The initial distribution expenses was substantial and as of the end of this period it has not yet
made a profit;
(6) Beasts Evolved 2 and Pica Town: Dream Origin Gameplay were launched in
December 2023 and as of the end of the reporting period the games are still in a loss-making
state.
2. Overview of Overseas Business
This year the Company's overseas revenue totaled RMB 272 million an increase of
5.03% compared to last year. The Company primarily launched Overmortal (European and
5American version) overseas this year. As of the end of the reporting period the overall overseas
gaming business has not yet generated profits.ii. Overview of Company Personnel
1. At the end of the reporting period the total number of employees was 1447 an increase
of 193 compared to the end of the previous year (a growth of 15.39%). Among them the number
of R&D personnel increased by 163 and the number of operational personnel increased by 24.
2. The average monthly number of employees in the Company this year was approximately
1386 an increase of approximately 246 compared to last year (a growth of 21.58%). Among
them the number of R&D personnel increased by approximately 159 and the number of
operational personnel increased by approximately 83.The number of Company employees increased compared to the previous year resulting in
corresponding increases in basic salaries and related expenses. However bonuses provided by
the Company based on operational performance decreased compared to the previous year
resulting in a slight decrease in overall personnel-related expenses.iii. Overview of Equity Investment Business
The Company's investment targets mainly consist of upstream and downstream enterprises
in the game industry or industry investment funds. There were a few new equity investments this
year. The total return from investment business this year (including investment income gains or
losses from changes in fair value assets impairment losses etc.) are detailed in the table below:
Unit: RMB Yuan
Item 2023 2022
Investment income recognized under the equity
method for joint ventures and associates
9207061.6474292570.87
(Profits of the investee recognized based on
ownership percentage)
Provision for impairment of long-term equity
investments -19961119.52 -143022342.67
(Impairment of equity investments)
Investment income
2198115.56-54000.00
(Gain on disposal of equity investments)
Gain or loss from fair value changes of other non-
-42380484.84-67007069.44
current financial assets
6Item 2023 2022
(Fair value changes of investees)
Investment income during the holding period of
other non-current financial assets 6180720.21
(Dividends from investees)
Total -50936427.16 -129610121.03
iv. Overview of Foreign Exchange Gain/Losses
The period-end central parity rate of the USD against the RMB was 7.0827 representing
an increase of 1.70% compared to the end of the previous year. Some of the Company's
transactions are settled in USD and the Company holds a relatively large amount of USD. The
income generated from exchange rate changes this year amounted to RMB 31.51 million (of
which RMB 19.17 million is attributable to shareholders of the Company). In comparison the
income generated from exchange rate changes in the same period last year was RMB 173 million
(with the exchange rate at the end of the previous year increasing by 9.24% compared to the
end of the year before last) This year's income generated from exchange rate changes
decreased by RMB 141 million compared to the previous year.v. Overview of Operating Cash Flow
1. The net cash flow from operating activities for the current year decreased by 32.35%
compared to last year mainly due to a year-on-year decrease in revenue from core products
resulting in a decrease in cash inflows from operating activities.
2. The year-on-year decrease in operating revenue for the current year was 19.02% which
is roughly equivalent to the decrease in cash inflows from operating activities (a year-on-year
decrease of 17.78%). However the year-on-year decrease in cash outflows from operating
activities was only 10.76%. Therefore the decrease in net cash flow from operating activities
exceeded the decrease in operating revenue.vi. Overview of Deferred Game Revenue
As of December 31 2023 the Company's unamortized deferred game revenue balance
amounts to 441 million yuan a decrease of RMB 115 million compared to the previous year-end
7balance of RMB 556 million. The main reasons are:
1. The Company's cooperation with the developer of Mole's World expired on May 26 2023
and the Company recognized the deferred revenue balance as operating revenue during the
reporting period as the performance obligations are no longer required.
2. The decrease in revenue from core products led to a corresponding decrease in the
balance of deferred revenue.vii. Adjusted Net Profit Attributable to Shareholders of the Company
To better reflect the operating performance of the Company's main business the impact of
exchange rate changes and equity investment activities on profit has been excluded. The
adjusted net profit attributable to shareholders of the Company for the year 2023 decreased by
21.35% compared to last year. The summary is as follows:
Unit: RMB Yuan
Item 2023 2022
Net profit attributable to shareholders of the Company 1125119212.35 1460874459.68
Less: (1) Changes in Equity Holdings Period (Gains
or Losses from Changes in Fair Value Investment -60053823.16 -107674340.91
Income and Asset Impairment Losses etc.)
(2) Foreign Exchange Gains 19167301.84 104159091.54
(3) Taxes and Charges Related to Investment
-2522112.51-21352917.98
Operations and Foreign Exchange Movements
Adjusted Net Profit Attributable to Shareholders of the
1168527846.181485742627.03
Company(II) Quarterly Key Accounting Data during the Reporting Period
Q1 Q2 Q3 Q4 Total
Operating
1144370036.561204554622.60957847434.54878079294.334184851388.03
revenue
Net profit
attributable to
306552774.63369418231.91183338216.61265809989.201125119212.35
shareholders of
the Company
Net profit
attributable to
shareholders of
280615068.87365081137.68178116785.81295149336.501118962328.86
the Company
after deducting
non-recurring
8Q1 Q2 Q3 Q4 Total
profits and
losses
Net cash flows
from operating 245586232.47 356063608.17 222909244.23 360941898.80 1185500983.67
activities
Description:
1. The decrease in fourth-quarter revenue compared to the third quarter is mainly due to a
decrease in revenue from core products and a relatively small contribution from newly launched
products.
2. The increase in net profit attributable to shareholders of the Company in the fourth
quarter compared to the third quarter is mainly due to:
(1) In the first three quarters of the year the provision for bonuses was relatively
sufficient based on operating performance. However at the year-end a portion of the bonuses
was offset based on the Company's annual operating performance project performance and
employee performance.
(2) In the fourth quarter of the year Xiamen Leiting Interactive Network Co. Ltd. offset
the difference between the provision for income tax based on a 25% rate in 2022 and the actual
settlement and payment of taxes. Based on cautious consideration income tax was still
provisioned at a rate of 25% for the year 2023.
3. The increase in net cash flow from operating activities in the fourth quarter compared to
the third quarter is mainly due to:
(1) The Company typically pays salaries on the 5th of each month. However due to the
National Day holiday salaries were paid at the end of September resulting in lower salary
payments in the fourth quarter compared to the third quarter.
(2) Fluctuations in quarterly performance and the tax declaration period resulted in lower
tax payments in the fourth quarter compared to the third quarter.
9III. Shareholder Composition
(I) Number and shareholding of the Company's shareholders
Total number of ordinary shareholders at the end of the reporting period 21808
Total number of ordinary shareholders as of the end of the previous month before
26350
the disclosure date of the annual report
Total number of preferred shareholders with voting rights restored at the end of the
-
reporting period
Total number of preferred shareholders with voting rights restored as of the end of
-
the previous month before the disclosure date of the annual report
Top 10 shareholders
Number of Pledged marked or
Increase/decreas shares held at frozen shares
Name of Shareholding Restricted Nature of
e in the Reporting the end of the
shareholder percentage (%) shares held Shareholder
Period reporting Status Quantity
period
Domestic
LU Hongyan -216860 21412615 29.72 None
individual
Domestic
CHEN Tuolin 8240025 11.44 None
individual
Hong Kong
Securities Overseas
1457789 7058812 9.80 None
Clearing corporation
Company Ltd.Domestic
HUANG Zhihui -75500 1374782 1.91 None
individual
Domestic
LI Peiying 1350000 1.87 None
individual
Zhongtai
Securities Asset
Management -
China Merchants
-437459 891281 1.24 None Other
Bank - Zhongtai
Xinghe No. 12
Collective Asset
Management Plan
China Minsheng
Bank Co. Ltd. -
Huaxia CSI
Animation &
546936 682008 0.95 None Other
Game Exchange-
Traded Open-End
Index Securities
Investment Fund
China
Construction Bank
Corporation - -139623 423811 0.59 None Other
Zhongtai Kaiyang
Value-Optimized
10Flexible Allocation
Mixed-Type
Securities
Investment Fund
China Universal
Asset
Management-
China Life
Insurance Co.Ltd. - Dividend
Insurance-China
Universal Asset 409700 409700 0.57 None Other
Management
Growth Equity
Portfolio Single
Asset
Management Plan
(Available for
Sale)
Ping An Fund -
Ping An Life
Insurance
Company of
China Ltd. - Ping
An Life - Ping An -217776 398968 0.55 None Other
Fund Equity
Entrusted
Investment No. 1
Single Asset
Management Plan
Related or acting-in-concert parties
N/A
among the shareholders listed above
Explanation of preferred
shareholders with voting rights
N/A
restored and their shareholding
quantities(II) Diagram of Equity and Control Relationships Between the Company and
Controlling Shareholder
11(III) Diagram of Equity and Control Relationships Between the Company and the
Ultimate Controlling Party
12Part III Management Discussion and Analysis
I. Discussion and Analysis of Business Operations
The Company specializes in the development and operation of online games with a focus
on nurturing innovative talent and promoting efficiency. The Company’s mission is to present
unique products and enriching entertainment to a global audience.In terms of in-house game development the Company's self-developed products such as
Asktao (PC) Asktao (Mobile) and Overmortal have garnered a strong following among players
and maintained solid profitability. Asktao (PC) has been in continuous operation for nearly 18
years since its launch in 2006 releasing key updates such as New Year versions anniversary
versions mid-year versions and zodiac-themed versions all of which have been well-received
by players. Asktao (Mobile) available for almost 8 years has consistently performed well with
an average ranking of 35th on the App Store's bestselling games list during the reporting period
with a peak ranking of 10th place. Overmortal launched in February 2021 has maintained an
average ranking of 44th on the App Store's bestselling games list during the reporting period
with a peak ranking of 7th place.In terms of game operation the Company maintains a "boutique" approach through its self-
operated platform Leiting Game implementing a differentiation strategy. Over years of
accumulation and refinement Leiting Game has developed outstanding game operation
capabilities and has successfully operated a diverse portfolio of games including Asktao (Mobile)
Overmortal Aobi Island: Dreamland Dragon POW! World Flipper Tale of Immortal (PC)
Dungeon Survivor II: Dark Tide (Android) Dungeon Survivor III: Dark Genesis Funny Fighters:
Battle Royale and Gumballs among others.In the future the Company will continue to iterate and update existing products to enhance
game performance and user experience as well as prolong the lifecycle of products through
continuous IP development. In terms of new product research and development the Company
will remain focused on MMORPG idle game categories and SLG while exploring content-
oriented products. The goal is to consistently strengthen the engineering capabilities of the R&D
13team and develop high-quality games that combine entertainment playability and commercially
viable design. Regarding product licensing the Company will continue to focus on classic gaming
IPs multiplayer competitive games mid-core games and commercially viable games with
experiential differences. This approach will be adjusted according to market dynamics and other
relevant factors.The Company will increase its investment in overseas markets continuously. Apart from a
few reserved IP-based products all in-house developed products must be targeted towards
overseas markets to be considered for approval. The Company will also continue to recruit
outstanding producers and distribution teams with profound insights into various cultures
worldwide to accelerate the development of its overseas business.(I) Major Product Performance
Overview of Launched Products:
In-house
Name Genre Release Date
Developed/Licensed
Asktao (PC) In-house Developed Turn-Based MMORPG April 2006
Asktao (Mobile) In-house Developed Turn-Based MMORPG April 2016
Idle Taoist Immortality
Overmortal In-house Developed February 2021
Cultivation Game
Aobi Island: Dreamland Licensed Casual Simulation July 2022
Fantasy Roguelike Shooting
Dragon POW! Licensed August 2023
Game
First-Person Shooting PC
Outpost: Infinity Siege In-house Developed March 2024
Game
Monster Never Cry In-house Developed Western Fantasy Idle Game March 2024
Beasts Evolved 2 Licensed Strategy Card Game December 2023
Funny Fighters: Battle
In-house Developed Casual Competitive RPG July 2019
Royale
Licensed in Charge
World Flipper of Localization RPG with Pinball Element October 2021
Development
Dungeon Survivor III:
Licensed Dungeon RPG October 2021
Dark Genesis
Note: All the games are mobile games except Asktao (PC) and Outpost: Infinity Siege.
14i. Asktao (PC)
The Company’s first product Asktao (PC) an online game that the Company developed
independently was launched in April 2006 and quickly became a favorite among gamers even
reaching a peak of nearly one million concurrent users. The game's excellence was recognized
with the Best Design for Digital Balance and the Best 2D (characters/scenes) Art Design awards
at the 5th annual CGDA (China Game Developers Awards). It was also nominated as one of the
Top 10 Outstanding PC Games in 2022 by CADPA (China Audio-Video and Digital Publishing
Association).Since its release in 2006 Asktao (PC) has won players' hearts with its high-quality
gameplay and reasonable business design. To prolong the game's life cycle and increase its IP
value the Company adapts to market trends and player feedback to update the game
consistently. Every year the Company release four major updates the new year annual mid-
year and zodiac updates to keep the game fresh and maintain its profitability.ii. Asktao (Mobile)
In April 2016 the Company launched Asktao (Mobile) an in-house developed MMORPG.It retains the narrative and world setting of Asktao (PC). Harnessing the loyal user base and IP
value the PC version built over the past decade and with extensive user research it was deeply
optimized to adapt its core gameplay to the mobile platform. The Company also incorporates
15user feedback into regular updates to ensure the game meets player expectations. To extend
the game's life cycle the Company persistently work on enhancing the Asktao brand and its IP
value.Due to its exceptional performance Asktao (Mobile) has gained industry recognition and
was chosen as the 6th game to win the China Excellent Publication Award (Audio-Visual
Electronic Game Publication) from the CADPA. It also won several other awards as well
including Best Original Mobile Game at the 2016 Golden Plume Awards and Best Game Music
Design at the 9th CGDA. It was voted one of the Top Ten Most Popular Original Mobile Online
Games of 2016.During the reporting period Asktao (Mobile) continued its tradition of four major version
update from previous years. In January the new year's costume was launched. The 7th-
anniversary grand event in April featured a fireworks festival a new server ceremony and other
special events. The 7th-anniversary theme song performed by singer Xianzi awakened the
sentimental feelings of fellow players in the game. In July the summer event provided players
with exclusive stress-relief gameplay. In October the National Day event was introduced with
the launch of the custom short film. In November adopting a “Fellow Daoists Create Together”
approach the game introduced its first animated series - Wulong Daoist Adventures in
Zhongzhou presenting players with a rich and immersive gaming world.During the reporting period Asktao (Mobile) maintained an average ranking of 35th on the
App Store's bestselling game list with a peak ranking of 10th.
16iii. Overmortal
Overmortal is an in-house developed idle Taoist immortality cultivation mobile game with
a traditional Chinese ink wash art style. The game depicts a Taoist realm inhabited by humans
immortals monsters and demons. It faithfully recreates the stages and mechanisms of Taoist
spiritual cultivation as well as displaying abilities and techniques from similar novels of the genre.Accompanied by dynamic lighting and sound effects players will enjoy an immersive and
engaging gaming experience.With outstanding game development and operational performance Overmortal has
received high industry recognition winning awards such as the Best Concept Art Design award
at the 12th CGDA the Best Creativity for Mobile Games award at the 14th CGDA and
nominations for the Top 10 Outstanding Creative Games and Top 10 Emerging Games by the
CADPA in 2021.In 2023 Overmortal officially launched the "Guardian Heritage" cultural public
welfare project. It has successfully implemented various intangible cultural heritage public
welfare activities including cuju (ancient Chinese football) paper cutting traditional opera
shadow puppetry and more. The game was honored with the "Outstanding Cultural Heritage
Game of the Year" award at the 8th Golden Gyro Award.After over three years of operation Overmortal has accumulated over 25 million registered
users. In the subsequent operational strategy the Company will focus more on existing users
17refining user acquisition to reduce inefficient spending. In terms of promotion there will be a
continued emphasis on brand exposure moderate adjustments and control of performance-
based advertising expenses and active exploration of innovative marketing methods. For user
operations activities such as daily live streaming Key Opinion Consumer (KOC) promotion
content creation e-commerce initiatives and community re-engagement will be carried out to
continually enhance user engagement and interaction. Simultaneously Overmortal will persist in
IP development enriching game content with diverse derivative materials such as novels music
comics and animations to boost brand influence and foster a unique IP culture recognition
among players.During the reporting period Overmortal maintained an average ranking of 44th on the App
Store's bestselling game list with a peak ranking of 7th.iv. Aobi Island: Dreamland
Aobi Island: Dreamland is a casual mobile game based off an existing IP launched on July
12 2022. The game retains many iconic elements from its web-based predecessor while
introducing various social interaction features and integrating fashion trends such as modernized
Chinese traditional styles. Players can engage in various in-game features such as character
development management simulation and outfit changing. The game has been updated at a
rapid pace since its release providing players with a fresh and varied gaming experience.
18Since its launch the game has maintained a rapid iteration and update pace continuously
introducing new events gameplay features and various brand/IP collaborations. Collaborations
have included partnerships with CCTV Animation Journey to the West The Legend of Nezha
The Adventures of Little Carp and other classic Chinese animation IPs) as well as Pleasant
Goat and Big Big Wolf totaling 11 well-known brands/IPs. A series of exciting events have been
launched providing players with a diverse and enriching gaming experience.v. Dragon POW!
Launched on August 11 2023 Dragon POW! is a top down shoot 'em up mobile game with
a unique gameplay mechanic of counterattacking by devouring bullets. Players take on the role
of a dragon knight who travels through various kingdoms with a small black dragon to retrieve
the lost treasures of the dragons. Instead of dodging enemy attacks players can swallow
incoming bullets to unleash powerful counterattacks resulting in a thrilling gameplay experience.Since the game's launch it has been widely loved by players due to its innovative differentiation
in theme and gameplay.
19vi. Outpost: Infinity Siege
Outpost: Infinity Siege is a first-person shooting PC game that focuses on multiplayer
cooperative survival exploration and construction. It was officially released on the Steam on
March 27th 2024. The game combines three gameplay elements: FPS (first-person shooter)
RTS (real-time strategy) and TD (tower defense). Players can build their own exclusive outposts
casually combine a variety of weapons and ammunition and experience diverse game modes
varied terrains and exploration and battles filled with random elements.
20(II) Overview of Main Reserve Products
The Company's main reserve products are as follows:
Main Reserve Products (In-house Developed)
Products Estimated
Status of Game Planned Regions for
Developed In- Genre Release Date
ISBN Licensing Release
House
Mainland China
Idle Taoist
Hong Kong Macao
M72 (Code Name) ISBN License Applied Cultivation TBD
Taiwan and
Simulation
Southeast Asia
Mainland China
Hong Kong Macao Second Half
Fantasy Idle
M88 (Code Name) ISBN License Applied and Taiwan as well of 2024
Cultivation Game
as Japan and South (Overseas)
Korea
ISBN License
Fortress Battle Tower Defense SLG Worldwide TBD
Obtained
Western Fantasy
M11 (Code Name) Not Yet Applied Worldwide TBD
Idle Game
Note: The ISBN License is a mandatory government approval required to legally launch a
game in China.Main Reserve Products (Licensed)
ISBN Authorized Estimated Release
Licensed Products Genre
License Regions Date
3D Vertical
One Piece: Dream
Owned Adventure Mobile Mainland China April 1st 2024
Pose
Game
Science Fiction
Theme Card Game Second Half of 2024
Billion Light Years Owned Worldwide
with Light SLG (Mainland China)
Elements
League of Gods:
Owned Chinoiserie RPG Mainland China Second Half of 2024
Fantasyland
Mainland China
Business Simulation Hong Kong Macao 2024
Chinese Cuisine Cruise Owned
Game Taiwan and (Overseas)
Singapore Malaysia
Lost Castle 2 Not Owned Roguelike Worldwide TBD
Note: 1. The games listed above are some of the Company's reserved products among which
One Piece: Dream Pose is co-distributed by Leiting Games in collaboration with other
companies.
2. The final launch status timing and intended release regions of games listed in the
21product reserve inventory are subject to uncertainty and may depend on products and market
conditions. Please stay up to date with the latest news and announcements from Leiting
Games.
3. The game Billion Light Years is identified by the codename and this codename is
provisional and does not represent the final official name.The introduction of some reserve products is as follows:
i. M72 (Code Name)
M72 (Code Name) is an idle mobile game with a Taoist immortality theme. You start as a
novice Taoist and gradually grow into an important member of your sect engaging in
breathtaking adventures across three realms. The game brings to life 3D aerial combat
recreating the mid-air battles and the use of magical talismans reminiscent of renowned Chinese
fantasy tales. Having applied for a license by the end of 2023 M72 (Code Name) is now
passionately under development.ii. M88 (Code Name)
M88 (Code Name) is an immersive idle MMORPG mobile game. Within the game players
have the freedom to customize their characters combine diverse skillsets and select their
preferred class branches. Employing strategies to combat formidable foes players explore the
realm of lost mysterious legends in this world of sword and magic. You can build your own homes
22engage in guild activities participate in team battles and embark on adventurous journeys with
other players relaxing in the laid-back idle gaming experiences. The overseas version of M88
(Code Name) is scheduled to be launched in the second half of 2024.
iii. One Piece: Dream Pose
One Piece: Dream Pose is an immersive 3D mobile game designed for portrait mode
and officially licensed by Toei Animation based on the beloved One Piece IP. As captains
players can rally companions from the New World and step into the shoes of the Straw Hat
Pirates reliving their epic adventures in the One Piece universe. The game's world is crafted
with stunning details and graphics. The game has secured its license and is scheduled to be
launched on April 1st 2024.
23iv. Billion Light Years
Billion Light Years is an engaging space warfare strategy game. Players begin their
gaming experience with a midcore strategy card game which seamlessly transitions into a
more casual SLG gameplay as they progress. Within the game players can immerse
themselves in adrenaline-fueled real-time battles strategize on ship customization and
weapon combinations and collect various types of sci-fi battleships. Additionally players can
set sail on thrilling expeditions experience unexpected events and team up with allies for
epic cosmic battles. The game has secured its license and is scheduled to be launched in
the second half of 2024.
24(III) Overseas Business Overview
The Company has been actively expanding its overseas operations gradually establishing
a comprehensive system for testing and releasing products abroad covering most regions
overseas. This enables the Company’s Minimum Viable Product (MVP) approach can be easily
applied in overseas markets allowing for earlier participation in paid testing compared to the
domestic market. This provides more comprehensive basic information and data for product
selection development and optimization.In 2023 the Company's overseas business achieved operating revenue of RMB 272 million
representing a year-on-year growth of 5.03%. During the Reporting Period the Company
successfully launched products overseas including Overmortal (European and American
version) Overmortal (Vietnamese version) and Funny Fighters: Battle Royale (Southeast Asian
version). In January 2024 Dragon POW! was launched in the Hong Kong Macau Taiwan
regions and South Korea while other previously launched projects continued to operate steadily.Furthermore several in-house developed products from the Company have undergone
multiple rounds of testing in overseas markets adopting the MVP approach for rapid iteration.The Company also has a reserve of several licensed products for overseas distribution including
Code M88 Billion Light Year Chinese Cuisine Cruise Lost Castle 2 and more.
25(IV) Investment Activities Overview
The Company continues to deepen its presence in the gaming market focusing on the
research and development as well as operational aspects of online gaming. Simultaneously it
invests in upstream and downstream enterprises related to the game industry including high-
quality game developers publishers and industry funds.Below are introductions to some of the enterprises in which the Company has invested or
holds shares:
i. Qingci Games Inc.Qingci Games established in March 2012 specializes in online game development and
operations. It's known for The Marvelous Snail the idle mobile game with a beautiful hand-drawn
art style and the roguelike game Gumballs. It was listed on the Hong Kong Exchanges in
December 2021 and G-bits holds an 18.55% stake in Qingci Games.According to publicly disclosed information from Qingci Games the game The Marvelous
Snail has been released in multiple overseas regions including Japan the United States
Canada Australia and Thailand. As of the end of 2023 the total revenue of The Marvelous Snail
both domestically and internationally has reached approximately RMB 3.26 billion with a
cumulative registered user count exceeding 26.72 million.ii. TapTap
TapTap founded in March 2016 manages the TapTap platform. G-bits holds a 9.67% stake
in TapTap. TapTap platform is a renowned third-party platform connecting game developers
publishers and players allowing users to download high-quality games and share their
experiences with others. From January to June 2023 the average monthly active users for the
TapTap Chinese version App were approximately 33.97 million people while the TapTap
international version app had an average of around 7.14 million monthly active users.iii. Xiamen Yongshi Technology Co. Ltd.Xiamen Yongshi Technology Co. Ltd. established in December 2014 focuses on online
26game development and production. G-bits holds a 20.00% stake in Xiamen Yongshi. Azure Lane
an anime-style game co-developed by Xiamen Yongshi is the first domestically produced
second-dimensional game to top the Japanese iOS bestselling list. It received the Google Play
Best Game Award in 2017 and holds a 9.4 rating on TapTap. Another in-house developed game
Eye of Deep Space was honored with the "Best 3D Game Award" on the 2021 Made with Unity
China list and has garnered over 0.13 million five-star reviews on the App Store.iv. Xiamen Taojin Interactive Network Co. Ltd.Established in June 2013 Xiamen Taojin Interactive Network Co. Ltd. focuses on online
game development and production. Xiamen Taojin created the popular roguelike series Dungeon
Survivor. G-bits holds a 30.00% stake in Xiamen Yongshi. Developed by Taojin Interactive
Dungeon Survivor II: Dark Tide (Android Version) and Dungeon Survivor III: Dark Genesis are
operated by Leiting Game. As of the end of 2023 Dungeon Survivor II: Dark Tide (Android
Version) has accumulated a registered user count exceeding tens of millions.v. Xiamen Zhenyouqu Information Technology Co. Ltd.Xiamen Zhenyouqu Information Technology Co. Ltd. established in August 2012 mainly
develops and produces online games. G-bits holds a 10.00% stake in Xiamen Zhenyouqu. It has
numerous popular games such as Sausage Party Ulala: Idle Adventure and Rapid Clash. In
particular Sausage Party has over 240 million downloads on TapTap.vi. Unity Technologies China
Unity Technologies China established on November 29 2021 is a joint venture of US-
based game engine developer Unity Technologies. G-bits holds a 1.6% stake in Unity
Technologies China. Founded in 2004 Unity Technologies is one of the leading companies in
the industry. Unity Technologies China is committed to creating a more suitable engine version
for local developers and its products have extensive applications in various fields such as
gaming automotive consumer culture and tourism industrial manufacturing and film and
animation. In 2023 Unity Technologies China officially launched the Unity Technologies China
Edition Engine marking the commencement of the localization process for Unity in China.
27vii. PeroPeroGames
PeroPeroGames founded in August 2017 mainly develops and produces online games.G-bits holds a 15.00% stake in PeroPeroGames. Its parkour-themed music game Muse Dash
has accumulated sales exceeding 10 million copies and it boasts a positive user review rate of
90% on the Steam.
II. Industry Overview During the Reporting Period
(I) Industry Landscape
The cultural industries of online gaming and online animation are important branches of the
internet economy benefiting from the overall growth of the internet industry and exhibiting rapid
development over an extended period. In recent years as the demographic dividends of the
game industry have gradually diminished the market has entered a stage of stock competition.The industry growth rate is gradually slowing down marking a period characterized by both
challenges and opportunities.According to the 2023 China Game Industry Report jointly released by the Game Publishing
Committee of China Audio-visual and Digital Publishing Association (GPC) and the China Game
Industry Research Institute the Chinese game user base reached 668 million people with a
year-on-year growth of 0.61%. The actual sales revenue of the China’s domestic game market
in 2023 reached RMB 302.96 billion a year-on-year growth of 13.95%. This growth was primarily
driven by the release of high-quality new games. In the segmented market mobile games still
maintain a leading position with actual sales revenue accounting for 74.88%. In addition PC
and console games also have a considerable number of products and audiences and new tracks
such as cross-platform games and mini-games have shown impressive performance making the
industry growth direction more flexible and diverse.
28"Going global" remains a key development strategy for many gaming companies in China.
According to the 2023 Research Report on Chinese Gaming Overseas compiled by China Audio-
visual and Digital Publishing Association (GPC) and the China Game Industry Research Institute
the actual sales revenue of games developed independently by China in overseas markets in
2023 reached US$16.37 billion experiencing a 5.65% year-on-year decrease. Intense
competition in the international market rising costs of acquiring traffic and a lack of localized
talent are significant challenges for China gaming companies venturing into overseas business.Furthermore technological innovation has become a key driver of global competitiveness
in the game industry. In 2023 the emergence of various AI tools has played an increasingly
important role in improving game development efficiency and content generation quality driving
more innovation applications in the gaming field and bringing about more changes and
opportunities. Therefore adhering to high-quality and refined development embracing a dual-
drive strategy of technology and content innovation continuously cultivating differentiated tracks
and placing more emphasis on user experience have become strategic means for the Chinese
game industry to face competition and achieve healthy development.
29(II) Impact of Industry Policies on the Company's Sector
In recent years regulatory authorities have attached great importance to the standardized
and healthy development of the game industry issuing a series of policies related to the
protection of minors and prevention of gaming addiction. Since the implementation of the revised
Law of the People's Republic of China on Protection of Minors in 2021 and the issuance of the
Notice of Further Strict Management to Effectively Prevent Minors from Addiction to Online
Games the gaming regulatory authorities the game industry and various sectors of society have
collaborated efforts. Approved games have achieved comprehensive access to the anti-addiction
real-name authentication system. The total gaming duration and spending limits for minors have
significantly decreased marking a phased achievement in the efforts to prevent gaming addiction
among minors. On January 1 2024 the Regulation on the Protection of Minors in Cyberspace
officially came into effect providing more specific guidelines for the improvement and
implementation of the protection of minors in the game industry.In addition to emphasizing the implementation of the basic requirements of the anti-
addiction gaming system regulatory authorities have also put forward corresponding
requirements for user information protection product content review and the development of
functional games. This indicates the key areas for the future work of gaming enterprises
emphasizing the need to enhance the protection of personal information security while ensuring
30the protection of minors.
As the policy environment for the game industry in our country continues to optimize with
successive laws regulations and institutional norms being introduced and a continued focus on
high-quality original games awareness of protecting gaming intellectual property rights has
further increased. The ecological environment of the game industry in our country is becoming
healthier and more standardized moving towards high-quality and high-level development.III. Overview of Core Business During the Reporting Period
(I) Core Business Operations of the Company
The Company specializes in the development and operation of online games with a focus
on nurturing innovative talent and promoting efficiency. The Company’s mission is to present
unique products and enriching entertainment to a global audience.Founded in 2004 the Company has immersed itself in the game industry. Through years
of development and technological advancement the Company has grown significantly
enhancing its technical capabilities and expanding its product portfolio. Rooted in traditional
Chinese culture the Company has developed games such as Asktao (PC) Asktao (Mobile) and
Overmortal. Asktao (PC) has been in continuous operation for nearly 18 years since its debut in
2006. Building on its strong user base and IP popularity the Company launched the mobile
version of the MMORPG Asktao(Mobile) in April 2016 which has enjoyed steady popularity for
nearly 8 years. In February 2021 the Company launched Overmortal an ink-wash style idle
mobile game about the Taoist cultivation of immortality. Since its release it has attracted over
25 million users.
Leiting Games a platform the Company operates independently has robust game
management capabilities. Leiting Games has managed a wide range of games such as Asktao
(Mobile) Overmortal Aobi Island: Dreamland Dragon POW! World Flipper Tale of Immortal
(PC) Dungeon Survivor II: Dark Tide (Android) Dungeon Survivor III: Dark Genesis Funny
Fighters: Battle Royale and Gumballs among other successful titles.
31(II) Primary Business Model of the Company
i. Revenue Streams
The payment models for online games primarily include pay for virtual items pay for
downloads pay based on playtime and in-game advertising. The Company's game product
revenue mainly comes from the payment model based on virtual items wherein players can enter
the game for free and the operator primarily profits from selling virtual items within the game.Payment for virtual items is the prevalent revenue model adopted by the online game industry in
China.ii. Operating Models
There are three main operating models for the Company’s games: independent operation
licensed operation and cooperative operation.
1) Independent Operation: The Company publishes games on its platform and handles
both publishing and promotion. These games might be developed by the Company or by other
organizations.
2) Licensed Operation: The Company licenses games developed by itself to external
publishers who are responsible for managing the game's publishing and promotion. The
Company’s role is limited to technical support and content development.
3) Cooperative Operation: The Company partners with third-party platforms such as the
App Store and Android application stores to co-publish and promote its games whether
developed by the Company itself or licensed.The Company’s mobile games mainly follow the independent operation and cooperative
operation models. For example Asktao (PC) is licensed to Beijing Guangyu Online Technology
Co.Ltd. and other PC games from the Company’s mainly follow the cooperative operation model.
32(III) Analysis of Core Competencies During the Reporting Period
i. Strong Independent Research and Development (R&D) Capabilities
1. Overview of the Company’s R&D Performance
The Company attached great importance to R&D and talent development. During this
reporting period The Company’s R&D expense amounted to RMB 679 million accounting for
16.23% of its revenue. This sustained investment has laid the foundation for its innovation. The
Company’s R&D team has grown year on year with the number of employees reaching 530 in
2021 692 in 2022 and 855 in 2023 representing 56.08% 55.18% and 59.09% of the total
number of employees respectively.
2. Boost R&D Performance with the Minimum Viable Product (MVP) Approach
Games as a form of cultural entertainment derive their strength from delivering fresh and
captivating experiences to users. The Company places significant emphasis on product
innovation striving to develop games that stand out both unique and commercially. By focusing
33on differentiation the Company continuously explores innovative approaches in core gameplay
conceptualization art style and other aspects thereby enhancing the competitive edge of its
products. However this pursuit of differentiation also escalates the complexity of project
development necessitating enhanced capabilities in gameplay refinement project management
and data analysis within the development teams. Drawing from years of experience the
Company has embraced an iterative development model known as the MVP approach in its R&D
process.In applying the MVP approach to the Company’s R&D at the start of a project the Company
assembles a core team to develop a prototype based on the creative designer's idea. Extensive
user testing is then used to validate the feasibility of the core gameplay mechanics. Throughout
the development process the game undergoes numerous iterations and is fine-tuned based on
test data. This MVP approach starting from the demo version allows the Company to keep a
tight rein on product direction avoid wasteful investments and control R&D costs. Frequent
testing during development helps the Company to control variables between two successive tests
allowing the Company to analyze user behavior feedback more accurately. As a result the
Company has able to address issues that arise during development in a timely manner
increasing R&D efficiency. As the demo evolves into a final project the Company continually
refines and adapts the MVP approach to ensure seamless integration between gameplay testing
and art assets.
34While the MVP approach is effective in controlling R&D costs it doesn't imply smaller
projects or less overall investment. The scope of the project depends on the experience of the
core team project management skills technological accumulation the nature of the project etc.The Company is committed to nurturing excellent game producers over the long term and
through the MVP approach the Company filters projects and allocates more resources in the
hope of producing more innovative engaging and high-quality products.In addition the MVP approach involves the Company’s operations team working closely
with the R&D team on a variety of tests and analyses. This allows the Company to gain a deep
understanding of the market and users of its products so that the Company can tailor its
strategies and minimize the risks and costs of release.
3. Middle Platform Construction A Strong R&D Foundation
The Company has prioritized the establishment of solid R&D middle platforms. This
includes the Company’s Technical Center Art Center Audio Department and Test Center.These pillars support every aspect of development from R&D and art design to soundtrack
creation and product testing. This system not only ensures development efficiency and high
quality output but also optimizes the allocation of resources across projects minimizing
redundant costs and ensuring a stable R&D process.The Company’s Technical Center specializes in game development focusing on both
35conventional and emerging technologies. It provides strong support including performance
testing and optimization effectively tackling technical challenges and improving R&D efficiency.Currently the Technical Center focuses on developing compilers and auxiliary tools for GS while
building server frameworks and various public services rooted in GS. It's designing PKG and
development tool chain is based on the GS environment so that it can develop universal tools
for all R&D teams and provide automated building and deployment solutions. The center
conducts in-depth research on Unity Unreal engine and 3D rendering technologies. The center
standardizes modularizes and builds frameworks for projects to provide service tailored to the
needs of different teams. As a result The Technical Center manages to reduce both the
resources and time costs of game development while improving R&D quality. In addition The
Technical Center applies cutting-edge AI technologies across all stages of game development
including planning development and testing improving both the R&D efficiency and the overall
gaming experience. In 2023 it established an AI Web Hub within the company consolidating
various commonly used AI drawing tools thereby facilitating painting-related tasks and
enhancing efficiency.The Company’s Art Center focuses on improving the quality and style of game art. It
establishes efficient pipelines for 2D 3D and content-oriented production lines laying a solid
foundation for both existing and future projects. Tailoring unique art styles to fit each game's
theme the Art Center strives to create differentiated game experiences while catering to diverse
aesthetic preferences incorporating mainstream elements to evoke emotional resonance with
players. Through continuous testing and iteration it seeks the optimal balance between
distinctiveness and mainstream appeal. Focusing on artistic excellence the Art Center sets
rigorous standards and guidelines for each product continually enhancing design capabilities
and quality control. The Art Center closely monitors the development of new technologies in its
daily work and actively promotes the application of cutting-edge technologies such as AIGC in
game art. In the field of game image generation these techniques are utilized to create artistic
original drawings and in-game assets including icons. These AI drawing tools help reduce the
time and resources required for producing a large volume of content enabling a more efficient
workflow and enhancing the productivity of game art production.
36The Company’s Audio Department is dedicated to creating immersive audio that integrates
with the game's narrative and gameplay. It pioneers the use of state-of-the-art audio and AI
technology to effectively create audio that enhances the gaming experience and is tailored to
player preferences.The Company’s Test Center manages project testing for daily and version updates to
ensure that the performance is up to the standard. The center ensures a stable allocation of
testing resources improving both the efficiency and standardization of our testing process. By
drawing on past experience it provides reusable testing methodologies to ensure that our games
maintain a stable quality.ii. Exceptional Game Operations
1. Overview of Company's Game Operations
Leiting Games an independently operated platform is committed to a quality-first
approach that prioritizes the user experience. The high-quality unique and highly engaging
games under Leiting Games' operations have gained significant popularity and earned an
excellent reputation.With years of experience Leiting Games has developed a comprehensive
understanding of operating various game genres including MMORPG Roguelike idle games
and casual simulation. Leiting Games' operational framework covers everything such as game
version optimization brand development media outreach event planning cooperative channels
customer support etc. With a keen understanding of the unique features of mobile games and
the target market as well as a sharp insight into player demographics behaviors and spending
habits Leiting Games tailor its strategies to deliver precise and effective promotion.
372. Player-Centric Approach for Long-Term Operations
The Company upholds a "player-centric" game design and operation philosophy dedicated
to fostering enjoyable experiences in the entertainment industry.The Company deeply understands user needs and creates high-quality original games
beloved by players. After the game launches the Company strengthens communication with
players through various channels. For example the Asktao (Mobile) project team conducts online
activities annually and organizes offline events to interact with core players regarding game
version planning promotion plans and other aspects. Moreover the Company listens to
feedback from key opinion leaders (KOLs) and collaborates with players to "customize" the game.The Company actively responds to user demands providing sincere and comprehensive
customer service. Guided by the service philosophy of "becoming an official friend to users and
creating a wonderful service experience" the Company embeds a "Contact Customer Service"
button within games. It provides players with comprehensive and meticulous service through
38various channels such as a 24-hour customer service hotline WeChat customer service official
account customer service forums and customer service email catering to users' real-time
inquiries complaints feedback and other requests. Additionally to improve response speed the
Company utilizes advanced technologies such as AI to build an intelligent self-service system
further enhancing customer service levels. A service quality inspection team is also established
to monitor service quality daily aiming to enhance player experience.
3. Precision and Effective Marketing Promotion Strategies
In recent years "buying traffic" has become an important promotion method in the game
industry. However its rising cost can negatively impact a game's profitability. Over the years the
Company has consistently prioritized creating unique high-quality products and tailoring its
promotion strategies accordingly. The Company’s promotion plans are based on the game's
features the target market and our understanding of the player base — their preferred platforms
behaviors and spending habits. Simultaneously the Company explores customer acquisition
from various methods including daily live streaming Key Opinion Customer (KOC) promotion
content creation e-commerce and community re-engagement. This allows the Company to
reach its target audience effectively and precisely while avoiding over-reliance on "buying traffic".
39(1) User Relationship Management
The Company values user relationship management as it facilitates communication
between the Company and its players. It allows the Company to meet the evolving demands of
our players by understanding their needs deeply a strategy that benefits its relationship with the
users and enhances the Company’s reputation within the industry. With sincerity towards the
players being the core of the Company’s operations game designers promotions staff and
customer support personnel organized numerous events for players. Some activities for users of
Asktao (Mobile) are as follow:
Since 2016 Asktao (Mobile) project team has been organizing multiple “Designers Talk”
events annually in different cities providing an opportunity for game designers to engage with
players. By the end of 2023 they have covered a total of 18 cities including Wuhan Chengdu
Hangzhou and others. Starting from 2018 Asktao (Mobile) project team has held an annual
Asktao Conference which gives players an opportunity to engage in in-depth discussions and
participate in fun events either online or offline. In 2023 Asktao (Mobile) project team gathered
offline with 51 players to discuss 102 topics. Since 2017 Asktao (Mobile) has held a national
competition every year attracting a huge number of participants. The competition includes warm-
ups point-based matches city matches (offline) knockout stages and finals (offline) creating
an energetic and engaging environment. In 2023 the national championship-related live
broadcasts or videos of Asktao (Mobile) reached 5.33 million people with an official online live
broadcast accumulating 0.19 million views.
(2) Advertising
The Company primarily engages in advertising promotion activities on platforms with active
user engagement by deploying advertising materials Key Opinion Customer (KOC)
recommendations gaming live streams and various other methods. At the same time the
Company supports UGC (user-generated content) across multiple platforms to spread the
product information faster and further. The Company also focuses on user retention with well-
designed gameplay and customer service. The Company believes that improving the user
experience is the key to higher user retention and long-term product success.
40In response to traditional “buying traffic” methods the company consistently refines its
advertising delivery model to adapt to changes in the market and user demands. It strives to
reach the target audience with lower acquisition costs enhancing the level of Return on
Investment (ROI). In terms of innovative marketing the Company’s games like Asktao (Mobile)
and Overmortal have run KOL (key opinion leader) promotional campaigns on short video
platforms based on the dates of major version updates and user activities. These targeted
promotions ensure a continuous flow of new users. Furthermore the Company continuously
explores and experiments with various innovative marketing strategies including the TikTok
Creator Program native bidding ad placements cloud-based micro-end advertising and e-
commerce live streaming.
(3) IP Development
The Company’s IP development aims to enrich the game's world character portrayals and
storylines to deepen players' immersion and emotional connection to the game.Asktao (Mobile) a classic IP that has been in operation for almost 18 years represents the
Company’s efforts to strengthen the Asktao brand. To build the brand the Company is enhancing
game stories and player immersion through various Asktao IP derivatives including novels
audiobooks merchandise and short films. From 2018 to 2021 Asktao (Mobile) successively
released two official novels Asktao: Dashing Spear and Asktao: Tao in the Heart. The Company
invited dozens of veteran players to participate in creative discussions and trial readings for the
novels aiming to vividly depict the world of Asktao (Mobile) as envisioned by the players. In
November 2023 adopting a "Co-creation with Fellow Daoists" approach the Company launched
the first animated series of Asktao (Mobile) titled Wulong Daoist Adventures in Zhongzhou. This
series faithfully reproduces classic scenes and NPC characters from the game presenting
players with a more diverse and immersive gaming world.Overmortal is a unique Taoist immortality cultivation-themed IP which is enhanced by music
recordings comics novels animations and more. Since its launch in 2022 the derivative IP
animation has been consistently updated on platforms such as Tik Tok Kuaishou and Bilibili.The cumulative fan base across all platforms has exceeded 2.5 million. Additionally the game
41continues to engage and retain users through a long-term strategy of IP content. It has released
brand documentaries such as the film Ordinary Yet Extraordinary the mini-drama Mr. White Fox
the audiobook Between Demon and Immortal the game's theme song animation and more.These contents maintain consistently high levels of popularity on major platforms and have
received widespread acclaim from players.
(4) Collaborations
Based on the characteristics of games and players the Company frequently collaborates
with products that have a high overlap with the target user base to conduct joint activities. This
approach aims to attract more user attention and recognition. Collaborative partners include
games novels animated films online animated series and other well-known IPs.During the reporting period Asktao (Mobile) collaborated with the China Academy of Art
and the inheritor of the art of velvet flowers creating a seventh-anniversary costume and a Qixi
(Chinese Valentine's Day) velvet flower gift box that integrate traditional Chinese colors and
patterns. This initiative aimed to promote the protection inheritance and innovation of Chinese
traditional culture and intangible cultural heritage. In addition Overmortal partnered with the West
Lake Scenic Area and the classic cultivation IP Shrouding the Heavens working towards
constructing a " Self-Cultivation Universe" for players to enhance their immersive experience.Aobi Island: Dreamland maintained frequent content updates throughout the year. It collaborated
with 11 well-known brands/IPs including CCTV Animation (Journey to the West The Legend of
Nezha The Adventures of Little Carp) as well as Pleasant Goat and Big Big Wolf launching a
series of exciting activities to provide players with a rich gaming experience.
(5) Charts & Recommendations
The Company’s high-quality unique and intriguing games have earned the
recognition from leading platforms such as the App Store and TapTap. The Company is
regularly featured in its charts attracting a significant number of downloads and earning
widespread attention. In addition players' ratings and discussions on these platforms have
further increased its games' popularity. During the reporting period several of the Company’s
42games including Asktao (Mobile) Overmortal Aobi Island: Dreamland World Flipper
Dungeon Survivor III: Dark Genesis Beasts Evolved 2 and Path of Immortals: Survivor were
featured on popular platforms such as the App Store.
(6) Word-of-Mouth Marketing
The Company leverages its excellent product quality to drive word-of-mouth marketing
through various third-party gaming platforms recommendations from KOCs (key opinion
consumers) WeChat accounts QQ groups and its official channels. The Company’s approach
includes user selection expectation management feature communication and user feedback
tracking to refine and improve its operations.
43Part IV Financial Statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 31 December 2023 31 December 2022
CURRENT ASSETS:
Cash and Cash equivalents 2397018382.09 2628619551.17
Settlements Provision
Loans to banks and other financial institutions
Financial assets held for trading 1125621695.38 629605938.78
Derivative financial assets
Notes receivable
Accounts receivable 238756746.14 264695831.84
Financing receivables
Prepayments 21422780.34 13330296.84
Insurance premium receivable
Due from reinsurers
Receivable reinsurance contract reserve
Other receivables 5599445.09 8022029.25
Including: Interest receivable
Dividends receivable 4000000.00
Financial assets purchased under agreements to resell
Inventories
Contract assets
Assets classified as held for sale
Current portion of non-current assets 11536441.92 20502738.32
Other current assets 11746515.71 14078760.20
Total current assets 3811702006.67 3578855146.40
NON-CURRENT ASSETS:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 11908237.48 16707513.05
Long-term equity investments 1164814123.76 1187261211.65
Other equity instruments investments
Other non-current financial assets 620273547.42 656389807.13
Investment properties 170713042.03 185051014.53
Fixed assets 596402026.29 639100053.20
Construction in progress 1660948.61
Productive biological assets
Oil and gas assets
Right-of-use assets 36327899.47 7639002.23
Intangible assets 69766821.60 72135456.36
Development expenditures
Goodwill 3808266.80 3808266.80
Long-term prepaid expenses 20045631.47 5681818.18
Deferred tax assets 83259745.81 97185342.58
Other non-current assets 46088941.01 40605666.67
Total non-current assets 2825069231.75 2911565152.38
Total assets 6636771238.42 6490420298.78
CURRENT LIABILITIES:
Short-term borrowings
Borrowing from the central bank
44Item 31 December 2023 31 December 2022
Deposits and balances from banks and other financial
institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 188815811.08 282198091.94
Receipts in advance 501832.24 64876.98
Contract liabilities 417007621.68 509694875.47
Financial assets sold under agreements to buy
Customer deposits and balances from banks and other
financial institutions
Customer brokerage deposits
Securities underwriting brokerage deposits
Payroll and employee benefits payable 455196050.52 530906045.00
Taxes payable 182803660.02 262203676.39
Other payables 34516136.28 75527618.02
Including: Interest payable
Dividend payable
Fees and commission payable
Payable reinsurance
Liabilities classified as held for sale
Current portion of non-current liabilities 10800876.22 4148677.00
Other current liabilities 13186313.60 25882386.82
Total current liabilities 1302828301.64 1690626247.62
NON-CURRENT LIABILITIES:
Insurance reserves
Long-term borrowings
Bonds payable
Including: Preference share
Perpetual debt
Lease liabilities 28132847.55 3606651.23
Long-term Payable
Long-term payroll and employee benefits payable
Provisions
Deferred income 159642.70 684231.97
Deferred tax liabilities 705651.53 3464492.20
Other non-current liabilities 57336347.24 82537676.23
Total non-current liabilities 86334489.02 90293051.63
Total liabilities 1389162790.66 1780919299.25
SHAREHOLDERS' EQUITY:
Paid-in capital 72041101.00 71866482.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 1400918753.30 1334367676.34
Less: treasury shares
Other comprehensive income 73375545.86 59710028.24
Special reserve
Surplus reserve 36020550.50 35941112.50
General reserve
Retained earnings 2881486077.30 2476849266.95
Equity attributable to shareholders of the Company 4463842027.96 3978734566.03
Non-controlling interests 783766419.80 730766433.50
Total shareholders’ equity 5247608447.76 4709500999.53
Total liabilities and shareholders’ equity 6636771238.42 6490420298.78
45Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 31 December 2023 31 December 2022
CURRENT ASSETS:
Cash and Cash equivalents 172514364.01 316357502.93
Financial assets held for trading 328976474.94 60342000.00
Derivative financial assets
Notes receivable
Accounts receivable 45693275.98 31868438.63
Financing receivables
Prepayments 1158216.36 560714.17
Other receivables 70829561.42 116613690.66
Including: Interest receivable
Dividends receivable 69977500.00 114576000.00
Inventories
Contract assets
Assets classified as held for sale
Current portion of non-current assets 5555356.97 4089865.87
Other current assets 383623.67 177765.77
Total current assets 625110873.35 530009978.03
NON-CURRENT ASSETS:
Debt investment
Other debt investments
Long-term receivables 2486121.17 5861968.11
Long-term equity investments 2150458973.88 2128930582.66
Other equity instruments investments
Other non-current financial assets 148546250.01 148339140.34
Investment properties 283235747.11 304655429.83
Fixed assets 10328855.38 10849209.46
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 423898.63 518200.56
Development expenditures
Goodwill
Long-term prepaid expenses 364995.95
Deferred tax assets
Other non-current assets
Total non-current assets 2595844842.13 2599154530.96
Total assets 3220955715.48 3129164508.99
CURRENT LIABILITIES:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 3091805.96 7546577.55
Receipts in advance 534094.42 34710.95
Contract liabilities 19695860.98 28818229.76
Payroll and employee benefits payable 103614920.85 118552169.31
Taxes payable 27210531.94 47822500.61
46Item 31 December 2023 31 December 2022
Other payables 5012208.17 5109242.69
Including: Interest payable
Dividend payable
Liabilities classified as held for sale
Current portion of non-current liabilities
Other current liabilities 1454183.60 1976867.48
Total current liabilities 160613605.92 209860298.35
NON-CURRENT LIABILITIES:
Long-term borrowings
Bonds payable
Including: Preference share
Perpetual debt
Lease liabilities
Long-term payable
Long-term payroll and employee benefits payable
Provisions
Deferred income 151675.64 533731.97
Deferred tax liabilities 3061614.95
Other non-current liabilities 1777206.67 1653646.50
Total non-current liabilities 1928882.31 5248993.42
Total liabilities 162542488.23 215109291.77
SHAREHOLDERS’ EQUITY:
Paid-in capital 72041101.00 71866482.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 1210019236.80 1143391521.98
Less: treasury shares
Other comprehensive income -24035.06 -24035.06
Special reserve
Surplus reserve 36020550.50 35941112.50
Retained earnings 1740356374.01 1662880135.80
Total shareholders’ equity 3058413227.25 2914055217.22
Total liabilities and shareholders’ equity 3220955715.48 3129164508.99
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2023 2022
1. Total revenue 4184851388.03 5167615488.17
Including: Operating revenue 4184851388.03 5167615488.17
Interest income
Net earned premiums
Net fee and commission revenue
2. Total cost of sales 2500157080.35 2800021736.04
Including: Cost of sales 479905478.93 582139390.15
Interest expenses
Fees and commission expenses
Surrenders
Net payments for insurance claims
Net provision of insurance reserve
47Item 2023 2022
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 25074744.32 20542210.28
Selling expenses 1127241515.96 1401713286.40
General and administrative expenses 314983930.97 340059533.55
Research and development expenses 679358601.39 672606989.65
Financial expenses -126407191.22 -217039673.99
Including: Interest expenses 1561576.37 371657.45
Interest income 90555821.67 44784179.87
Add: Other income 41385502.91 48614213.47
Investment income/(losses) 34921944.16 106355390.43
Including: Share of profits or loss of associates and joint
9207061.6474292570.87
ventures
Gain from derecognition of financial assets
measured at amortized cost
Exchange gains or losses
Net exposure hedging gains/ (losses)
Gain/ (losses) on the changes in fair value -32966781.00 -27356324.21
Credit impairment losses 3727608.72 6004840.37
Assets impairment losses -25895706.04 -180603588.49
Gain/ (losses) from disposal of assets 326039.11 -74690.07
3. Operating profit 1706192915.54 2320533593.63
Add: Non-operating income 576190.90 4111201.50
Less: Non-operating expenses 6800538.08 9706890.19
4. Profit/(loss) before tax 1699968568.36 2314937904.94
Less: Income tax expense 238876135.03 355440226.60
5. Net profit /(loss) 1461092433.33 1959497678.34
(1) Categorized by operation continuity
Net profit from continuing operations 1461092433.33 1959497678.34
Net profit from discontinuing operations
(2) Categorized by ownership
Net profit attributable to shareholders of the Company 1125119212.35 1460874459.68
Net profit attributable to non-controlling interests 335973220.98 498623218.66
6. Other comprehensive income net of tax 14236742.09 76362714.35
(1) Other comprehensive income net of tax attributable to
13665517.6273759967.18
shareholders of the Company
(i) Other comprehensive income that will not be reclassified to
profit or loss
Remeasurement gains or losses of a defined benefit plan
Other comprehensive income using the equity method that will
not be reclassified to profit or loss
Changes in fair value of other equity instrument investments
Changes in fair value of enterprise's own credit risk
(ii) Other comprehensive income to be reclassified to profit or
13665517.6273759967.18
loss
Other comprehensive income that can be reclassified to profit
3870111.8424210160.88
or loss in equity method
Changes in fair value of other debt investments
Amount of financial assets reclassified into other
comprehensive income
Provision for credit impairment of other debt investments
Cash flow hedging reserves (effective part of profit and loss of
cash flow hedging)
Exchange differences on translation of foreign currency
9795405.7849549806.30
financial statements
Others
48Item 2023 2022
(2) Other comprehensive income net of tax attributable to non-
571224.472602747.17
controlling interests
7. Total comprehensive income 1475329175.42 2035860392.69
Total comprehensive income attributable to shareholders of the
1138784729.971534634426.86
Company
Total comprehensive income attributable to non-controlling
336544445.45501225965.83
interests
8. Earnings per share
Basic earnings per share (RMB yuan / share) 15.63 20.33
Diluted earnings per share (RMB yuan / share) / /
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
INCOME STATEMENT OF COMPANY
For the year ended 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2023 2022
1. Total revenue 358670329.43 366952095.41
Less: Total cost of sales 47110325.74 52957080.97
Taxes and surcharges 4621644.92 3978019.77
Selling expenses
Administrative expenses 49461736.62 56893848.36
Research and development expenses 119182218.79 121330495.33
Finance expenses -13529502.51 -1478215.01
Including: Interest expenses (expressed with positive
value)
Interest income (expressed with positive
11999749.201437605.32
value)
Add: Other income 23161446.02 9852216.87
Investment income/(losses) 643832058.16 1069054203.86
Including: Share of profits or losses of associates and
-45879868.75-12277587.40
joint ventures
Gain from derecognition of financial assets
measured at amortized cost
Net exposure hedging gains/ (losses)
Gain/ (losses) on the changes in fair value -4565761.05 9449592.39
Credit impairment losses -509115.93 -278868.81
Assets impairment losses
Gain/ (losses) from disposal of assets 419.03 -26349.81
2. Operating profit/Loss 813742952.10 1221321660.49
Add: Non-operating income 6345.58 22245626.22
Less: Non-operating expenses 1525892.86 1838051.86
3. Profit/(loss) before tax 812223404.82 1241729234.85
Less: Income tax expense 14264764.61 30618060.18
4. Net profit /(loss) 797958640.21 1211111174.67
(1) Net profit from continuing operations 797958640.21 1211111174.67
(2) Net profit from discontinuing operations
5. Other comprehensive income net of tax
(1) Other comprehensive income net of tax
Other comprehensive income that will not be reclassified to
profit or loss
Other comprehensive income using the equity method that
will not be reclassified to profit or loss
Changes in fair value of other equity instrument investments
49Item 2023 2022
Changes in fair value of enterprise's own credit risk
(2) Other comprehensive income to be reclassified to profit or
loss
Other comprehensive income that can be reclassified to
profit or loss in equity method
Changes in fair value of other debt investments
Amount of financial assets reclassified into other
comprehensive income
Provision for credit impairment of other debt investments
Cash flow hedging reserves (effective part of profit and loss
of cash flow hedging)
Exchange differences on translation of foreign currency
financial statements
Others
6. Total comprehensive income 797958640.21 1211111174.67
7. Earnings per share
(1) Basic earnings per share (RMB yuan / share)
(1) Diluted earnings per share (RMB yuan / share)
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2023 2022
1. CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services 4275602815.62 5283768708.60
Net increase in customer bank deposits and due to banks and other
financial institutions
Net increase in loans from the central bank
Net increase in funds borrowed from other financial institutions
Cash premiums received on original insurance contracts
Net cash received from re-insurance business
Net increase in deposits and investments from insurers
Cash received from interest fees and commission
Net increase in funds deposit
Net increase in repurchase business funds
Net income from securities trading brokerage business
Tax refunds received
Cash received relating to other operating activities 153020528.31 102742365.44
Sub-total of cash inflows from operating activities 4428623343.93 5386511074.04
Cash paid for purchase of goods and services 689290600.25 805723313.49
Net increase in loans and payments on behalf of customers
Net increase in deposits with central bank and other financial
institutions
Payments for claims for original insurance contracts
Net increase in funds lent
Cash paid for interest fees and commission
Commissions on insurance policies paid
Cash paid to and on behalf of employee 1042923072.57 927760338.06
Cash paid for taxes 465104414.01 676767132.59
Cash paid relating to other operating activities 1045804273.43 1223866327.36
Sub-total of cash outflows from operating activities 3243122360.26 3634117111.50
Net cash flows from operating activities 1185500983.67 1752393962.54
50Item 2023 2022
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from disposal of investments 5032510000.00 5396627362.89
Cash received from investment income 78529048.99 80526820.62
Net proceeds from disposal of property plant and equipment
1310.0060970.00
intangible assets and other long-term assets
Cash received from disposal of subsidiaries and other business
units
Cash received relating to other investing activities 6841666.67
Sub-total of cash inflows from investing activities 5111040358.99 5484056820.18
Purchase of property plant and equipment intangible assets and
55673991.8543603059.73
other non-current assets
Cash paid for investments 5545911111.00 5254320492.69
Net increase in secured loans
Net cash paid for acquisition of a subsidiary and other operating
units
Cash paid relating to other investing activities
Sub-total of cash outflows from investing activities 5601585102.85 5297923552.42
Net cash flows from investing activities -490544743.86 186133267.76
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from investment 63743604.71 677105.70
Including: Cash receipts from capital contributions from non-
controlling interests of subsidiaries
Proceeds from borrowings
Cash receipts relating to other financing activities
Subtotal of cash inflows from financing activities 63743604.71 677105.70
Repayments for debts
Cash payments for distribution of dividends or profit and interest
1013195819.002398348767.95
expenses
Including: Dividends or profit paid to non-controlling shareholders
283992000.00252000000.00
of subsidiaries
Cash payments relating to other financing activities 9796328.24 6132880.88
Subtotal of cash outflows from financing activities 1022992147.24 2404481648.83
Net cash flows from financing activities -959248542.53 -2403804543.13
4. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
36832233.24187832199.74
CASH EQUIVALENTS
5. NET INCREASE IN CASH AND CASH EQUIVALENTS -227460069.48 -277445113.09
Add: Cash and cash equivalents at beginning of year 2622640821.07 2900085934.16
6. CASH AND CASH EQUIVALENTS AT END OF THE YEAR 2395180751.59 2622640821.07
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
COMPANY STATEMENT OF CASH FLOWS
For the year ended 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2023 2022
1. CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of services 311647085.47 351742009.71
Tax refunds received
Cash received relating to other operating activities 86859266.26 103204659.03
Sub-total of cash inflows from operating activities 398506351.73 454946668.74
Cash paid for purchase of goods and services 4520905.45 7222101.67
Cash paid to and on behalf of employee 182754174.90 176848240.26
Cash paid for taxes 54430631.86 99585994.33
51Item 2023 2022
Cash paid relating to other operating activities 24747344.33 38592651.08
Sub-total of cash outflows from operating activities 266453056.54 322248987.34
Net cash flows from operating activities 132053295.19 132697681.40
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from disposal of investments 760500000.00 2235600000.00
Cash received from investment income 735185796.88 1811930454.50
Net proceeds from disposal of property plant and equipment
30033.00
intangible assets and other long-term assets
Cash received from disposal of subsidiaries and other business units
Cash received relating to other investing activities 336800.00
Sub-total of cash inflows from investing activities 1495685796.88 4047897287.50
Purchase of property plant and equipment intangible assets and
3792909.092322412.61
other non-current assets
Cash paid for investments 1098900000.00 2014400000.00
Cash Paid for disposal of subsidiaries and other business units
Cash paid relating to other investing activities
Sub-total of cash outflows from investing activities 1102692909.09 2016722412.61
Net cash flows from investing activities 392992887.79 2031174874.89
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from investment 63743604.71 677105.70
Proceeds from borrowings
Cash receipts relating to other financing activities
Subtotal of cash inflows from financing activities 63743604.71 677105.70
Repayments for debts
Cash payments for distribution of dividends or profit and interest
729203819.002146864067.95
expenses
Cash payments relating to other financing activities 413368.72 1231686.64
Subtotal of cash outflows from financing activities 729617187.72 2148095754.59
Net cash flows from financing activities -665873583.01 -2147418648.89
4. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
993.2646784.25
CASH EQUIVALENTS
5. NET INCREASE IN CASH AND CASH EQUIVALENTS -140826406.77 16500691.65
Add: Cash and cash equivalents at beginning of year 312508715.23 296008023.58
6. CASH AND CASH EQUIVALENTS AT END OF THE YEAR 171682308.46 312508715.23
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
52CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
2023
Equity attributable to shareholders of the Company
Total
Item Other equity instruments Less: Other Non-controlling
Special Surplus General Retained shareholders’
Share capital preference Perpetual Capital reserve Treasury comprehensive Others Subtotal interests
Others reserve reserve reserve earnings equity
share debt Shares income
1. Balance at the end
71866482.001334367676.3459710028.2435941112.502476849266.953978734566.03730766433.504709500999.53
of previous year
Changes in accounting
policies
Corrections of prior
period errors
Others
2. Balance at the
71866482.001334367676.3459710028.2435941112.502476849266.953978734566.03730766433.504709500999.53
beginning of the year
3. Increase/(decrease)
174619.0066551076.9613665517.6279438.00404636810.35485107461.9352999986.30538107448.23
during the period
(1) Total
13665517.621125119212.351138784729.97336544445.451475329175.42
comprehensive income
(2) Shareholders’
contributions and 174619.00 66279676.56 66454295.56 348038.26 66802333.82
reduction
(i) Shareholders
‘contributions in 174619.00 63568985.71 63743604.71 - 63743604.71
ordinary share
(ii) Other equity
instruments
contributions
(iii) Amount of share-
based payments 2710690.85 2710690.85 348038.26 3058729.11
recognized in equity
(iv) Others
(3). Profit distribution 79438.00 -720482402.00 -720402964.00 -283992000.00 -1004394964.00
(i) Transfer to surplus
79438.00-79438.00
reserve2023
Equity attributable to shareholders of the Company
Total
Item Other equity instruments Less: Other Non-controlling
Special Surplus General Retained shareholders’
Share capital preference Perpetual Capital reserve Treasury comprehensive Others Subtotal interests
Others reserve reserve reserve earnings equity
share debt Shares income
(ii) Transfer to general
Reserve
(iii) Distribution to
-720402964.00-720402964.00-283992000.00-1004394964.00
shareholders
(iv) Others
(4) Transfer within
equity
(i) Capital reserves
converted to share
capital
(ii) Surplus reserves
converted to share
capital
(iii) Loss made up by
surplus reserves
(iv) Changes in the
defined benefit plan
transferred to retained
earnings
(v) Other
comprehensive income
transferred to retained
earnings
(vi) Others
(5). Special reserve
(i). Additions
(ii). Utilisation
(6) Others 271400.40 271400.40 99502.59 370902.99
4. Balance at the end
72041101.001400918753.3073375545.8636020550.502881486077.304463842027.96783766419.805247608447.76
of the period2022
Equity attributable to shareholders of the Company
Item Other equity instruments Less: Other Non-controlling Total shareholders’
Special Surplus General
Share capital preference Perpetual Capital reserve Treasury comprehensive Retained earnings Others Subtotal interests equity
Others reserve reserve reserve
share debt Shares income
1. Balance at the end
71864752.001314418710.72-14049938.9435941112.503171962867.274580137503.55479481724.365059619227.91
of previous year
Changes in accounting
policies
Corrections of prior
period errors
Others
2. Balance at the
71864752.001314418710.72-14049938.9435941112.503171962867.274580137503.55479481724.365059619227.91
beginning of the year
3. Increase/(decrease)
1730.0019948965.6273759967.18-695113600.32-601402937.52251284709.14-350118228.38
during the period
(1) Total
73759967.181460874459.681534634426.86501225965.832035860392.69
comprehensive income
(2) Shareholders’
contributions and 1730.00 7420142.21 7421872.21 1309040.04 8730912.25
reduction
(i) Shareholders
‘contributions in 1730.00 675375.70 677105.70 - 677105.70
ordinary share
(ii) Other equity
instruments
contributions
(iii) Amount of share-
based payments 6744766.51 6744766.51 1309040.04 8053806.55
recognized in equity
(iv) Others
(3). Profit distribution -2155988060.00 -2155988060.00 -252000000.00 -2407988060.00
(i) Transfer to surplus
reserve
(ii) Transfer to general
Reserve
(iii) Distribution to
-2155988060.00-2155988060.00-252000000.00-2407988060.00
shareholders
(iv) Others2022
Equity attributable to shareholders of the Company
Item Other equity instruments Less: Other Non-controlling Total shareholders’
Special Surplus General
Share capital preference Perpetual Capital reserve Treasury comprehensive Retained earnings Others Subtotal interests equity
Others reserve reserve reserve
share debt Shares income
(4) Transfer within
equity
(i) Capital reserves
converted to share
capital
(ii) Surplus reserves
converted to share
capital
(iii) Loss made up by
surplus reserves
(iv) Changes in the
defined benefit plan
transferred to retained
earnings
(v) Other
comprehensive income
transferred to retained
earnings
(vi) Others
(5). Special reserve
(i). Additions
(ii). Utilisation
(6) Others 12528823.41 12528823.41 749703.27 13278526.68
4. Balance at the end
71866482.001334367676.3459710028.2435941112.502476849266.953978734566.03730766433.504709500999.53
of the period
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting Department: Chen
HualiangCOMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2023
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
2023
Other equity instruments Less: Other
Item Special Surplus Retained Total shareholders’
Share capital preference Perpetual Capital reserve Treasury comprehensive
Others reserve reserve earnings equity
share debt Shares income
1. Balance at the end of previous year 71866482.00 1143391521.98 -24035.06 35941112.50 1662880135.80 2914055217.22
Changes in accounting policies
Corrections of prior period errors
Others
2. Balance at the beginning of the year 71866482.00 1143391521.98 -24035.06 35941112.50 1662880135.80 2914055217.22
3. Increase/(decrease) during the period 174619.00 66627714.82 79438.00 77476238.21 144358010.03
(1) Total comprehensive income 797958640.21 797958640.21
(2) Shareholders’ contributions and reduction 174619.00 66627714.82 66802333.82
(i)Shareholders’ contributions in ordinary share 174619.00 63568985.71 63743604.71
(ii)Other equity instruments contributions
(iii) Amount of share-based payments recognized in equity 3058729.11 3058729.11
(iv) Others
(3). Profit distribution 79438.00 -720482402.00 -720402964.00
(i) Transfer to surplus reserve 79438.00 -79438.00
(ii) Distribution to shareholders -720402964.00 -720402964.00
(iii) Others
(4) Transfer within equity
(i) Capital reserves converted to share capital
(ii) Surplus reserves converted to share capital
(iii) Loss made up by surplus reserves2023
Other equity instruments Less: Other
Item Special Surplus Retained Total shareholders’
Share capital preference Perpetual Capital reserve Treasury comprehensive
Others reserve reserve earnings equity
share debt Shares income
(iv) Changes in the defined benefit plan transferred to retained
earnings
(v) Other comprehensive income transferred to retained
earnings
(vi) Others
(5). Special reserve
(i). Additions
(ii). Utilisation
(6) Others
4. Balance at the end of the period 72041101.00 1210019236.80 -24035.06 36020550.50 1740356374.01 3058413227.25
2022
Other equity instruments Less: Other
Item Special Surplus Total shareholders’
Share capital preference Perpetual Capital reserve Treasury comprehensive Retained earnings
Others reserve reserve equity
share debt Shares income
1. Balance at the end of previous year 71864752.00 1134650612.13 -24035.06 35941112.50 2607757021.13 3850189462.70
Changes in accounting policies
Corrections of prior period errors
Others
2. Balance at the beginning of the year 71864752.00 1134650612.13 -24035.06 35941112.50 2607757021.13 3850189462.70
3. Increase/(decrease) during the period 1730.00 8740909.85 -944876885.33 -936134245.48
(1) Total comprehensive income 1211111174.67 1211111174.67
(2) Shareholders’ contributions and reduction 1730.00 8729182.25 8730912.25
(i)Shareholders’ contributions in ordinary share 1730.00 675375.70 677105.70
(ii)Other equity instruments contributions
(iii) Amount of share-based payments recognized in equity 8053806.55 8053806.552022
Other equity instruments Less: Other
Item Special Surplus Total shareholders’
Share capital preference Perpetual Capital reserve Treasury comprehensive Retained earnings
Others reserve reserve equity
share debt Shares income
(iv) Others
(3). Profit distribution -2155988060.00 -2155988060.00
(i) Transfer to surplus reserve
(ii) Distribution to shareholders -2155988060.00 -2155988060.00
(iii) Others
(4) Transfer within equity
(i) Capital reserves converted to share capital
(ii) Surplus reserves converted to share capital
(iii) Loss made up by surplus reserves
(iv) Changes in the defined benefit plan transferred to retained
earnings
(v) Other comprehensive income transferred to retained
earnings
(vi) Others
(5). Special reserve
(i). Additions
(ii). Utilisation
(6) Others 11727.60 11727.60
4. Balance at the end of the period 71866482.00 1143391521.98 -24035.06 35941112.50 1662880135.80 2914055217.22
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting Department: Chen
Hualiang