Stock Code: 603444 Stock Name: G-bits
G-bits Network Technology (Xiamen) Co. Ltd.
2024 Annual Report (Summary)
March 2025
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 condition 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 this 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 unqualified audit opinion for the Company.V.The profit distribution proposal or capital reserve capitalization plan for the
Reporting Period as approved by the Board of Directors.The Company plans to distribute a cash dividend of RMB 35.00 per 10 shares (including
taxes) based on the total number of shares outstanding on the equity registration date of the
2024 annual profit distribution plan excluding repurchased shares. This profit distribution will
not involve any capital reserve transfer to share capital or other forms of profit distribution.The total cash dividend for 2024 (including the interim dividend already distributed and the
annual dividend declared but yet to be implemented) is expected to be RMB 717.56 million
accounting for 75.94% of the net profit attributable to shareholders of the Company.Since its IPO in January 2017 the Company has cumulatively distributed cash dividends
totaling RMB 6.02 billion (including the announced but not yet implemented annual dividend for
2024) which is 6.69 times the net proceeds raised from the initial public offering.
To share operational achievements and enhance investor confidence the Company
2intends to authorize the Board to determine and implement the 2025 interim cash dividend plan
(including semi-annual and first three quarters distributions) under the following conditions: (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.
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
Contact Information Board Secretary Securities Affairs 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 2024 31 December 2023 YoY+/- (%) 31 December 2022
Total assets 6923548235.25 6636771238.42 4.32 6490420298.78
Equity attributable to
shareholders of the 4902079614.40 4463842027.96 9.82 3978734566.03
Company
Item 2024 2023 YoY+/- (%) 2022
Operating revenue 3695682593.56 4184851388.03 -11.69 5167615488.17
Net profit attributable to
shareholders of the 944919757.13 1125119212.35 -16.02 1460874459.68
Company
Net profit attributable to
shareholders of the
Company after 877172509.47 1118962328.86 -21.61 1468317227.00
deducting non-recurring
profits and losses
Net cash flows from
1248636979.541185500983.675.331752393962.54
operating activities
a decrease
Weighted average of 6.25
19.7926.0432.49
return on equity (%) percentage
points
Basic earnings per
13.1515.63-15.8720.33
share (RMB/share)
4Description:
i. Overview of Main Game Revenue and Profits
The Company's operating revenue primarily derives from its self-developed core products:
Asktao (PC) Asktao (Mobile) and Overmortal (Mainland version). During the Reporting Period
the game gross billings1 generated from these three products are as follows:
Unit: RMB million Yuan
Item 2024 2023 YoY+/- (%)
Asktao (PC) 1118.84 1076.50 3.93
Asktao (Mobile) 2073.26 2339.85 -11.39
Overmortal (Mainland version) 595.64 1035.66 -42.49
Total 3787.74 4452.01 -14.92
1. Domestic Game Business
(1) The operating revenue and profit of Asktao (PC) remained largely stable year-over-year
during the Reporting Period.
(2) The operating revenue distribution expenses and profit of Asktao (Mobile) declined
year-over-year during the Reporting Period.
(3) The operating revenue distribution expenses and profit of Overmortal (Mainland
Version) and Aobi Island: Dreamland saw a significant year-over-year decrease during the
Reporting Period.
(4) Newly launched titles including Alchemy Family Chinese Cuisine Cruise and League
of Gods: Fantasyland contributed incremental revenue. As of the end of the Reporting Period
Chinese Cuisine Cruise has achieved modest profitability while Alchemy Family and League of
Gods: Fantasyland remained unprofitable.
2. Overview of Overseas Business
The Company's overseas operating revenue for the period totaled RMB 499.79 million
representing an 83.92% year-over-year increase. This growth was primarily driven by the launch
1 The game gross billings refer to the amount of player recharges. The difference between gross billings and the Company’s
operating revenue is primarily due to factors such as revenue-sharing costs paid to operators related taxes and fees and
unutilized player items.
5of Dragon POW! (Overseas Version) Monster Never Cry (Overseas Version) and Outpost:
Infinity Siege (Steam). Overmortal (European and American Version) which launched in August
2023 completed its first full year of operations recording an increase in both revenue and profit
compared to the prior year. As of the end of the Reporting Period the overall overseas game
business has yet to achieve profitability.ii. 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. The financial results from investment activities
during the Reporting Period including investment income fair value changes and asset
impairment losses are detailed in the table below:
Unit: RMB Yuan
Item 2024 2023
Investment income recognized under the equity method for joint
ventures and associates
-13841708.759207061.64
(Profits of the investee recognized based on ownership
percentage)
Provision for impairment of long-term equity investments
-49376948.28-19961119.52
(Impairment of equity investments)
Investment income
43732263.192198115.56
(Gain on disposal of equity investments)
Gain or loss from fair value changes of other non-current financial
assets -15375777.68 -42380484.84
(Fair value changes of investees)
Investment income during the holding period of other non-current
financial assets 10000000.00
(Dividends from investees)
Total -24862171.52 -50936427.16
iii. Overview of Foreign Exchange Gain/Losses
The period-end central parity rate of the USD against the RMB was 7.1884 representing
an increase of 1.49% compared to the end of the previous year. Some of the Company's
transactions are settled in USD and the Company holds a significant amount of USD. The
income generated from exchange rate fluctuations during the Reporting Period amounted to
RMB 34.91 million (of which RMB 21.69 million is attributable to shareholders of the Company)
compared to RMB 31.51 million (RMB 19.17 million attributable to shareholders) in the same
6period last year representing a year-over-year increase of RMB 3.40 million.
iv. Overview of Operating Cash Flow
The net cash flow from operating activities for the year increased by 5.33% year-over-year
as cash inflows from operating activities exceeded outflows. Cash inflows from operating
activities decreased by 7.19% compared to the previous year primarily due to a decline in
revenue from key titles such as Asktao (Mobile) and Overmortal (Mainland Version). Meanwhile
cash outflows from operating activities decreased by 11.76% year-over-year mainly due to a
reduction in distribution expenses and other expenditures.v. Overview of Deferred Game Revenue
As of December 31 2024 the Company's unamortized deferred game revenue balance
amounted to RMB 478.38 million an increase of RMB 37.87 million compared to the previous
year-end balance of RMB 440.51 million. This increase was primarily driven by the launch of new
titles during the year including League of Gods: Fantasyland Monster Never Cry (Overseas
Version) and Monster Never Cry (Mainland Version) resulting in higher deferred revenue based
on item consumption progress or the estimated lifespan of paying players.vi. Adjusted Net Profit Attributable to Shareholders of the Company
To better reflect the operating performance of the Company's core business the impact of
exchange rate fluctuations investment activities and property impairments on profit has been
excluded. The adjusted net profit attributable to shareholders of the Company is summarized as
follows:
Unit: RMB Yuan
Item 2024 2023 YoY+/- (%)
1.Net profit attributable to shareholders of the
944919757.131125119212.35-16.02
Company
Less: (1) Income from disposal of long-term equity
43731831.202198115.561889.51
investments
(2) Changes in Equity Holdings Period (Gains
or losses from changes in fair value investment -34659572.85 -62251938.72 44.32
income and asset impairment losses etc.)
(3) Foreign exchange gains 21689916.00 19167301.84 13.16
(4) Taxes and charges related to investment 5218166.99 -2522112.51 306.90
7Item 2024 2023 YoY+/- (%)
operations and foreign exchange movements
2.Adjusted net profit attributable to shareholders of
908939415.791168527846.18-22.21
the company (excluding property impairment)
Less: (5) Fixed asset impairment and related taxes -39357026.75 -4450939.89 -784.24
3.Adjusted net profit attributable to shareholders of
948296442.541172978786.07-19.15
the Company (including property impairment)
Note：1) The data listed in the table above are attributable to shareholders of the Company.
2) Given the significant change in property impairment this year compared to the previous year
the Company has separately presented adjusted operating performance excluding property
impairment for enhanced comparability.（II） Quarterly Key Accounting Data during the Reporting Period
Q4 2024
Q1 Q2 Q3 Q4
QoQ+/- (%)
Operating revenue 927265003.93 1032384127.82 858632540.87 877400920.94 2.19
Net profit attributable to
shareholders of the 253363007.32 264464585.84 139673592.50 287418571.47 105.78
Company
Net profit attributable to
shareholders of the
Company after 197973093.10 264624775.23 150808990.71 263765650.43 74.90
deducting non-recurring
profits and losses
Net cash flows from
230570533.67363712658.76232736935.51421616851.6081.16
operating activities
Description:
1. The increase in net profit attributable to shareholders of the Company in Q4 compared
to Q3 was mainly due to:
(1) Adequate bonus accruals based on operating performance in the first three quarters
with a partial reversal in Q4 based on the Company’s full-year performance project results and
employee performance.
(2) A decrease in distribution expenses in Q4 compared to Q3.
(3) Foreign exchange gains of RMB 41.12 million in Q4 compared to a foreign exchange
loss of RMB 26.94 million in Q3 resulting in a quarter-over-quarter increase of RMB 68.06 million
(resulting in a quarter-over-quarter increase of RMB 43.01 million attributable to shareholders of
the Company).
8(4) Xiamen Leiting Interactive Network Co. Ltd. reversed the difference between the 25%
accrued corporate income tax for 2023 and the actual tax settlement amount. Based on cautious
consideration income tax was still provisioned at a rate of 25% for the year 2024.
2.The increase in net cash flow from operating activities in Q4 compared to Q3 was mainly
due to:
(1) The Company typically pays monthly salaries on the 5th of the following month. However
due to the National Day holiday September salaries were paid in advance at the end of
September leading to lower salary payments in Q4 compared to Q3.
(2) A decrease in distribution expenses in Q4 compared to Q3.
(3) A higher number of matured fixed deposits in Q4 compared to Q3 resulting in a quarter-
over-quarter increase in interest cash inflow.III. Shareholder Composition
（I） Number and shareholding of the Company's shareholders
Total number of ordinary shareholders at the end of the Reporting Period 22355
Total number of ordinary shareholders as of the end of the previous month before
20190
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 21412615 29.72 None
individual
Domestic
CHEN Tuolin 8240025 11.44 None
individual
Hong Kong
Securities Overseas
-1193001 5865811 8.14 None
Clearing corporation
Company Ltd.HUANG Zhihui 1374782 1.91 None Domestic
9individual
Domestic
LI Peiying 1350000 1.87 None
individual
Guotai Asset
Management Co.Ltd. - Social 1055936 1055936 1.47 None Other
Security Fund
Portfolio 1102
China Minsheng
Bank Co. Ltd. -
Huaxia CSI
Animation &
201788 883796 1.23 None Other
Game Exchange-
Traded Open-End
Index Securities
Investment Fund
Agricultural Bank
of China Co. Ltd.- CSI 500
Exchange-Traded 441970 645101 0.90 None Other
Open-End Index
Securities
Investment Fund
Basic Pension
Insurance Fund 620050 620050 0.86 None Other
1006 Portfolio
Agricultural Bank
of China Co. Ltd.- Ping An Low
620000 620000 0.86 None Other
Carbon Economy
Mixed Securities
Investment Fund
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
10（II） Diagram of Equity and Control Relationships Between the Company and
Controlling Shareholder（III） Diagram of Equity and Control Relationships Between the Company and the
Ultimate Controlling Party
11Part 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.Since its establishment in 2004 the Company has been deeply engaged in the game
market successfully developing multiple titles rooted in Chinese traditional culture including
Asktao (PC) Asktao (Mobile) Overmortal and Immortal Sword. Asktao (PC) has been in
continuous operation for nearly 19 years since its launch 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 maintained solid market performance through continuous
iterations and user experience enhancements over the past 9 years. In February 2021 the
Company launched Overmortal an ink-wash style idle mobile game about the Taoist cultivation
of immortality which has been consistently updated over the past 4 years. Through its long-term
operation the Company has gained extensive experience in sustaining and evolving idle
cultivation games. In January 2025 the Company released Immortal Sword a 3D idle cultivation
mobile game with sword-fighting mechanics which has demonstrated steady performance post-
launch. Additionally the Company’s proprietary publishing platform Leiting Games leverages
years of operational expertise to support the success of both self-developed and licensed titles.In 2024 the Company continued to optimize its overseas market strategy achieving
overseas revenue of RMB 499.79 million reflecting an 83.92% year-on-year growth. Several
titles including Dragon POW! (Overseas Version) Monster Never Cry (Overseas Version) and
Outpost: Infinity Siege (Steam) were launched during the year.Looking ahead the Company will continue to iterate and update existing products to
enhance game performance and user experience. It will also implement appropriate user-friendly
designs based on player feedback while continuing to build its IP portfolio to extend product
lifecycles. In new product development the Company will prioritize talent density in core projects
reinforcing its R&D capabilities with a focus on three types of initiatives: engaging and
12commercially successful titles engaging titles with breakeven or minor losses and technology-
driven exploratory projects. In operations the Company will further refine its strategic focus
concentrating resources on core product operations and key user engagement while enhancing
the efficiency and focus of its publishing 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
Idle Taoist Immortality
Immortal Sword In-house Developed January 2025
Cultivation Game
Aobi Island: Dreamland Licensed Casual Simulation July 2022
League of Gods:
Licensed Chinoiserie RPG October 2024
Fantasyland
First-Person Shooting PC
Outpost: Infinity Siege In-house Developed March 2024
Game
Funny Fighters: Battle
In-house Developed Casual Competitive RPG July 2019
Royale
Gumballs Licensed Roguelike and Simulation December 2016
Note: All the games are mobile games except Asktao (PC) and Outpost: Infinity Siege.i. Asktao (PC)
The Company’s first independently developed PC game Asktao (PC) was launched in
April 2006 and quickly became a favorite among players even reaching a peak of nearly one
million concurrent users. Since its release in 2006 Asktao (PC) has been continuously updated
in response to market trends and player feedback extending its life cycle and increasing its IP
value and delivering fresh experiences to players while maintaining strong profitability.
13ii. Asktao (Mobile)
In April 2016 the Company launched Asktao (Mobile) an in-house developed and self-
operated MMORPG leveraging the strong user base and IP value accumulated by Asktao (PC)
over the past decade. Since its launch nearly nine years ago Asktao (Mobile) has maintained
solid market performance. To further extend its life cycle the Company has continuously
expanded the Asktao IP and strengthened its brand presence.In 2024 Asktao (Mobile) continued its annual four major version updates and introduced a
special-themed update for the first time in November which received positive feedback. During
the Reporting Period Asktao (Mobile) maintained an average ranking of 46th on the App Store's
bestselling game list with a peak ranking of 10th.
14iii. 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.Since 2024 Overmortal has introduced three new cultivation paths—Sword Cultivator Ghost
Cultivator and Scholar Cultivator—continuously delivering fresh gameplay experiences for
players.After over 4 years of operation Overmortal has accumulated more than 27million registered
users. In the subsequent operational strategy the Company will focus more on existing users
refine user acquisition strategies to improve efficiency and optimize brand exposure. The
Company will actively explore innovative marketing methods focusing on live streaming Key
Opinion Consumer (KOC) promotion community re-engagement and other diversified user
operations initiatives.iv. Immortal Sword
Immortal Sword is an in-house developed 3D idle cultivation mobile game with sword-
fighting mechanics launched on January 2 2025 in Mainland China. The game features 3D
aerial combat faithfully recreating Taoist cultivation experiences such as "sword flight" "mid-air
battles" and the use of magical talismans. Players begin as wandering immortals and progress
15to become core members of a sect embarking on an extraordinary journey to battle across the
three realms. Within its first week of launch the game surpassed one million registered users.From January to February 2025 Immortal Sword maintained an average ranking of 41 on the
App Store's bestselling game list with a peak ranking of 14.Immortal Sword will be gradually launched in Hong Kong Macau and Taiwan regions as
well as in Europe and North America.（II） Overview of Main Reserve Products
The introduction of some reserve products is as follows:
i. Scepter and Sword (Codename M88)
Scepter and Sword (Codename M88) is an in-house developed 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 engage in guild activities participate in team battles and
embark on adventurous journeys with other players relaxing in the laid-back idle game
experiences. The game has obtained its ISBN license and is scheduled to be launched in the
first half of 2025.
16ii. Jiu Mu Zhi Ye
Jiu Mu Zhi Ye is a season-based SLG game set in the Three Kingdoms era operated by
the Company. In the game players assume the role of a regional lord recruiting famous generals
from the Three Kingdoms developing territories and cities and competing for supremacy in the
Central Plains with other players. Key gameplay features include "free movement without grid-
based restrictions" and "real-time combat with multiple team formations" offering a unique and
differentiated experience. Jiu Mu Zhi Ye has obtained its ISBN license and is scheduled to be
launched in Mainland China in the second half of 2025.The launch plans for reserve products are subject to various factors and may involve
uncertainties. They are provided for reference only.
17（III） Investment Activities Overview
The Company continues to deepen its presence in the game market with a focus on the
research development and operation of online games. Simultaneously it invests in upstream
and downstream enterprises related to the game industry including high-quality game
developers publishers and industry funds.Below is an overview of some of the enterprises in which the Company has invested or
holds equity stakes:
Investment Shareholding
Company Description
Target Percentage
Qingci Games the developer of the classic hand-drawn idle
mobile game The Marvelous Snail and the Roguelike mobile
18.55%
game Gumballs was listed on the Hong Kong Stock Exchange
in December 2021 (6633.HK).TapTap platform is a renowned third-party platform connecting
game developers publishers and players allowing users to
9.67% download high-quality games and share their experiences with
others. Its parent company XD Inc. is listed on the Hong Kong
Stock Exchange (2400.HK).Xiamen Yongshi co-developed the popular 2D naval combat
game Azur Lane which has been a best-seller both domestically 20.00%
and internationally. Its self-developed game Eye of Deep Space
has received over 140000 five-star reviews on the App Store.Xiamen Taojin created the popular roguelike series Dungeon 30.00%
Survivor.Xiamen Zhenyouqu owns several popular games including
Sausage Party and Ulala: Idle Adventure. Sausage Party a
10.00%
shooting survival game has accumulated over 250 million
downloads on TapTap.Unity China is a joint venture of the U.S. game engine developer
Unity Technologies. It launched the Tuanjie Engine in 2023
1.60%
providing creative support across industries such as game
automotive industrial manufacturing and film animation.Developed by Guangzhou PeroPero the music game Muse
15.00% Dash with parkour elements has sold over 10 million copies and
boasts a 90% approval rating on Steam.
18II. Industry Overview During the Reporting Period
（I） Industry Landscape
According to the 2024 China Game Industry Report released by the Game Publishing
Working Committee (GPC) of the China Audio-Video and Digital Publishing Association the
number of game users in China reached 674 million in 2024 representing a year-on-year
increase of 0.94%. The Chinese game industry has entered a phase of mature market
competition. The actual sales revenue of the Chinese game market amounted to RMB 325.78
billion a 7.53% increase compared to the previous year. This growth was primarily driven by the
increase in the number of new releases the launch of blockbuster products the stable operation
of evergreen titles and the strong performance of mini games. In the segmented market mobile
game still maintained a dominant position accounting for 73.12% of actual sales revenue.According to the 2024 China Mobile Game Advertising and Marketing Report released by
Gamma Data (CNG) increasing traffic acquisition costs have continued to compress corporate
profits leading to a decline in net profits for more than 50% of major listed game companies.Operating costs have been steadily increasing and industry competition has become more
intense. Game companies must make breakthroughs in differentiated innovation and the
sustainable development of high-quality products. Focusing on niche markets strengthening
19competitive advantages through differentiation and continuously enhancing user experience will
be crucial for the long-term growth of companies.Regarding the overseas market Chinese game companies are actively responding to the
challenges of slowing global market growth and intensified competition continuing to explore
expansion opportunities abroad. In 2024 the actual sales revenue of Chinese independently
developed games in international markets reached USD 18.56 billion a year-on-year increase
of 13.39%.（II） Impact of Industry Policies on the Company's Sector
In recent years regulatory authorities have placed significant emphasis on the healthy and
standardized development of the game industry continuously introducing new requirements and
standards across various areas including the protection of minors cultural values online
ecosystem governance data security personal information protection and management of
emerging technologies. These measures aim to guide the industry toward regulated high-quality
growth. In the long term well-structured regulatory policies are crucial for promoting the industry's
development and progress.In response the Company will focus on a strategy centered around high-quality
differentiated and globalized products with a strong commitment to cultural confidence and
20technological innovation to offer exceptional game experiences to players worldwide. The
Company will prioritize content development enhance its internal management systems and
continue to implement regulatory measures throughout the game lifecycle including pre-launch
operational and post-launch stages. Additionally the Company will intensify efforts in content
ecosystem governance strengthen protections for minors and maintain a healthy game
environment for its products.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. The
Company’s mission is to present differentiated products and services to global users creating
and sharing delightful experiences in the entertainment industry. During the Reporting Period
the Company achieved a revenue of RMB 3.70 billion representing a year-on-year decrease of
11.69%.
In terms of in-house developed games the Company has continuously iterated and
updated its products such as Asktao (PC) Asktao (Mobile) and Overmortal launching multiple
events and versions to maintain user engagement generating revenue and profit contributions.Leiting Games the platform operated independently by the Company has developed
strong game management capabilities. The platform has successfully managed a diverse
portfolio of games including Asktao (Mobile) Overmortal Immortal Sword Aobi Island:
Dreamland Tale of Immortal (PC) Funny Fighters: Battle Royale Gumballs and other
successful titles.（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.
21Payment 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
cooperative operation and licensing operation. Among them Asktao (PC) is licensed to Beijing
Guangyu Online Technology Co.Ltd. Other in-house developed and licensed products mainly
adopt independent operation and cooperative operation models. The three operation models are
as follows:
1.Independent Operation: The Company publishes games on its platform and is
responsible for promotion and operation. These games might be developed by the Company or
by external developers.
2.Cooperative Operation: The Company partners with third-party platforms such as the
App Store and Android app store including Huawei vivo and Google Play to co-publish and
promote its games whether developed in-house or licensed.
3.Licensing Operation: The Company licenses its self-developed games to external
publishers who are responsible for managing the game's publishing and promotion. The
Company’s responsibilities are limited to providing technical support and ongoing content
development.
22（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. Its in-house
developed products such as Asktao (PC) Asktao (Mobile) and Overmortal have received
widespread market recognition and positive feedback. During this Reporting Period The
Company’s R&D expense amounted to RMB 757.63 million accounting for 20.50% of its revenue.This sustained investment has laid the foundation for its innovation.The Company continues to enhance its R&D and innovation capabilities. As of December
31 2024 the Company and its subsidiaries hold 1254 registered trademarks 358 software
copyrights 60 art copyrights 8 music copyrights 7 literary copyrights 11 audio product
copyrights 2 cinematographic works copyrights and 129 domain names. Additionally the
Company has obtained 20 invention patents.
2. Boost R&D Performance with the Minimum Viable Product (MVP) Approach
The Company places significant emphasis on product innovation striving to develop games
that stand out both unique and commercially. By focusing on 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.
23At the initial stage producers must define the core concept of a project including key
aspects such as core gameplay uniqueness target players market positioning and potential
risks. Once the project passes evaluation a prototype is rapidly developed based on the creative
vision and validated through user testing. Throughout the development process high-frequency
iterations and optimizations are conducted leveraging test data for precise user feedback
analysis. Issues are addressed promptly to enhance R&D efficiency. The Minimum Viable
Product (MVP) approach enables the Company to maintain product direction and avoid inefficient
investments. Meanwhile the Company continuously refines its R&D framework to ensure the
seamless integration of validated core gameplay art assets and monetization mechanisms.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. Centralized Platform Construction A Strong R&D Foundation
The Company focuses on the development of a centralized R&D platform providing strong
support for product development across various areas including technology art design music
production and product testing. This platform spans the entire product development cycle
effectively ensuring research and development efficiency and product quality. The establishment
24of the centralized R&D platform has minimized redundant resource allocation between different
projects enhancing the reuse of human resources knowledge and other assets thereby
controlling R&D costs and improving the stability of the R&D system.Additionally the Company is actively exploring the application of AI technologies in game
development to continuously improve production efficiency. In 2023 the Company launched the
AIWebHub platform integrating various commonly used AI drawing tools and models to facilitate
the use of AI in game development. In 2024 the platform was optimized based on user feedback
with improvements made to underlying algorithms and model training processes to enhance
usability and operational efficiency. Through the application of cutting-edge technologies like
AIGC in game art the Company has effectively reduced content production time and resource
consumption ensuring high-quality outputs while further boosting art production capabilities and
overall efficiency.ii. Exceptional Game Operations
1. Overview of Company's Game Operations
Leiting Games an independently operated platform follows a quality-first approach with a
focus on 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. Classic MMORPG Asktao (Mobile) has been running steadily for nearly 9 years while
Overmortal and Immortal Sword have laid a solid foundation for the Company’s idle cultivation
genre. Games such as Tale of Immortal (PC) and Dungeon Survivor are beloved by players.
252. Player-Centric Approach for Long-Term Operations
The Company remains committed to a player-centric game design and operations
philosophy gaining deep insights into user needs to create high-quality original games that
resonate with players.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 official community app Asktao Hub serves as a convenient interactive platform for players
to access game information share experiences and engage directly with the project team
further integrating them into the Asktao universe.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
26creating a wonderful service experience" the Company embeds a "Contact Customer Service"
button within games. It provides players with comprehensive and meticulous service through
various channels such as a 24-hour customer service 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. Exploring Precision and Effective Marketing Promotion Strategies
"Buying traffic" is one of the key methods for promoting games; however rising user
acquisition costs have impacted profitability. The Company remains committed to leveraging
differentiated high-quality products as the foundation for its marketing strategy. By analyzing
product characteristics market positioning and player behavior patterns the Company
formulates tailored promotion plans and reaches target users through diverse methods including
daily live streaming KOC (Key Opinion Consumer) promotion content development and
community engagement. These approaches reduce reliance on paid acquisition. In 2024 the
Company actively explored innovative marketing channels such as e-commerce live streaming
and precision-segmented ad placement achieving strong results.
27The Company prioritizes user experience in user relationship management and fosters
deep engagement with players. For example Asktao (Mobile) regularly organizes events such
as “Designers Talk” enabling developers to gain insights into player needs and continuously
refine gameplay to enhance user retention. Overmortal hosts annual offline meet-ups in cities
including Hangzhou Wuhan Shenzhen Beijing and Chengdu where players participate in Q&A
sessions and interactive activities strengthening their connection with the game. Additionally in
November 2022 the Company launched the official community platform Leiting Games
Membership Center integrating game news exclusive rewards customer support and direct
communication with developers. This platform offers players a seamless one-stop service while
providing the Company with direct insights into user feedback enabling more precise
optimization of products and services.The Company enriches game universes through novels animations and music enhancing
player immersion and reinforcing brand value. Asktao (Mobile) has released a series of IP-based
content including the novels Asktao: Dashing Spear and Asktao: Tao in the Heart the animated
series Wulong Daoist Adventures in Zhongzhou as well as audiobooks merchandise and short
films. These efforts continuously expand the Asktao IP and elevate brand recognition. Similarly
Overmortal builds an original IP centered on Taoist cultivation featuring derivative works such
as the animated series I Am Xiaoyao the comic Overmortal the audiobook Between Demon and
Immortal and a series of game-themed soundtracks. These content expansions further develop
the game’s narrative and player engagement.The Company continuously refines its advertising models to align with market dynamics
and user behavior maximizing acquisition efficiency and return on investment (ROI). Asktao
(Mobile) has achieved strong performance on Douyin’s (TikTok China) live streaming platform
with single-session GMV (gross merchandise value) ranking among the top in the virtual goods
category.The Company also leverages high-affinity IP collaborations to expand user reach and brand
recognition partnering with franchises spanning games novels animated films and online
series. In addition the Company employs diversified marketing strategies including third-party
gaming platforms KOC (Key Opinion Consumer) recommendations WeChat and QQ player
28communities and official channels to drive organic growth and long-term engagement.
During the Reporting Period multiple Company titles received prominent recommendations
on leading platforms such as the App Store and TapTap further boosting visibility.
29Part IV Financial Statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 31 December 2024 31 December 2023
CURRENT ASSETS
Cash and Cash equivalents 2253009828.62 2397018382.09
Settlements Provision
Loans to banks and other financial institutions
Financial assets held for trading 1435396307.08 1125621695.38
Derivative financial assets
Notes receivable
Accounts receivable 170942573.07 238756746.14
Financing receivables
Prepayments 22245193.89 21422780.34
Insurance premium receivable
Due from reinsurers
Receivable reinsurance contract reserve
Other receivables 34265183.81 5599445.09
Including: Interest receivable
Dividends receivable
Financial assets purchased under agreements to resell
Inventories
Contract assets
Assets classified as held for sale
Current portion of non-current assets 90973351.97 11536441.92
Other current assets 281959717.03 11746515.71
Total current assets 4288792155.47 3811702006.67
NON-CURRENT ASSETS
Loans and advances
Debt investment
Other debt investments 62266260.00
Long-term receivables 8989823.06 11908237.48
Long-term equity investments 1075222525.77 1164814123.76
Other equity instruments investments
Other non-current financial assets 602066150.96 620273547.42
Investment properties 156375069.50 170713042.03
Fixed assets 507350079.26 596402026.29
Construction in progress 13431458.49 1660948.61
Productive biological assets
Oil and gas assets
Right-of-use assets 28342929.44 36327899.47
Intangible assets 69907892.54 69766821.60
Development expenditures
Goodwill 3808266.80 3808266.80
Long-term prepaid expenses 6864207.10 20045631.47
Deferred tax assets 97135440.71 83259745.81
Other non-current assets 2995976.15 46088941.01
Total non-current assets 2634756079.78 2825069231.75
Total assets 6923548235.25 6636771238.42
CURRENT LIABILITIES
Short-term borrowings
Borrowing from the central bank
Deposits and balances from banks and other financial
30Item 31 December 2024 31 December 2023
institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 170472236.21 188815811.08
Receipts in advance 74748.52 501832.24
Contract liabilities 464751114.10 417007621.68
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 400566410.82 455196050.52
Taxes payable 135025450.02 182803660.02
Other payables 32777170.23 34516136.28
Including: Interest payable
Dividend payable
Fees and commission payable
Payable reinsurance
Liabilities classified as held for sale
Current portion of non-current liabilities 11734902.95 10800876.22
Other current liabilities 9724489.99 13186313.60
Total current liabilities 1225126522.84 1302828301.64
NON-CURRENT LIABILITIES
Insurance reserves
Long-term borrowings
Bonds payable
Including: Preference share
Perpetual debt
Lease liabilities 19880603.50 28132847.55
Long-term Payable
Long-term payroll and employee benefits payable
Provisions
Deferred income 87778.30 159642.70
Deferred tax liabilities 897700.30 705651.53
Other non-current liabilities 44083682.13 57336347.24
Total non-current liabilities 64949764.23 86334489.02
Total liabilities 1290076287.07 1389162790.66
SHAREHOLDERS’ EQUITY：
Paid-in capital 72041101.00 72041101.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 1398264013.33 1400918753.30
Less: treasury shares 52171629.00
Other comprehensive income 87935700.64 73375545.86
Special reserve
Surplus reserve 36020550.50 36020550.50
General reserve
Retained earnings 3359989877.93 2881486077.30
Equity attributable to shareholders of the Company 4902079614.40 4463842027.96
Non-controlling interests 731392333.78 783766419.80
Total shareholders’ equity 5633471948.18 5247608447.76
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 6923548235.25 6636771238.42
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
31COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 31 December 2024 31 December 2023
CURRENT ASSETS
Cash and Cash equivalents 126458627.40 172514364.01
Financial assets held for trading 105155515.28 328976474.94
Derivative financial assets
Notes receivable
Accounts receivable 25280804.28 45693275.98
Financing receivables
Prepayments 1280806.63 1158216.36
Other receivables 33997089.23 70829561.42
Including: Interest receivable
Dividends receivable 33497000.00 69977500.00
Inventories
Contract assets
Assets classified as held for sale
Current portion of non-current assets 1978689.92 5555356.97
Other current assets 96996599.12 383623.67
Total current assets 391148131.86 625110873.35
NON-CURRENT ASSETS
Debt investment
Other debt investments
Long-term receivables 1268157.79 2486121.17
Long-term equity investments 2478180639.42 2150458973.88
Other equity instruments investments
Other non-current financial assets 143178860.92 148546250.01
Investment properties 261816064.39 283235747.11
Fixed assets 8981768.94 10328855.38
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 617078.37 423898.63
Development expenditures
Goodwill
Long-term prepaid expenses 169543.80 364995.95
Deferred tax assets
Other non-current assets
Total non-current assets 2894212113.63 2595844842.13
Total assets 3285360245.49 3220955715.48
CURRENT LIABILITIES
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 3061010.67 3091805.96
Receipts in advance 43115.13 534094.42
Contract liabilities 17564542.09 19695860.98
Payroll and employee benefits payable 99610356.66 103614920.85
Taxes payable 15018456.17 27210531.94
Other payables 4673453.22 5012208.17
Including: Interest payable
Dividend payable
Liabilities classified as held for sale
32Item 31 December 2024 31 December 2023
Current portion of non-current liabilities
Other current liabilities 1214022.53 1454183.60
Total current liabilities 141184956.47 160613605.92
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 87778.30 151675.64
Deferred tax liabilities
Other non-current liabilities 1623576.65 1777206.67
Total non-current liabilities 1711354.95 1928882.31
Total liabilities 142896311.42 162542488.23
SHAREHOLDERS’ EQUITY：
Paid-in capital 72041101.00 72041101.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 1210012752.39 1210019236.80
Less: treasury shares 52171629.00
Other comprehensive income 112635.16 -24035.06
Special reserve
Surplus reserve 36020550.50 36020550.50
Retained earnings 1876448524.02 1740356374.01
Total shareholders’ equity 3142463934.07 3058413227.25
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 3285360245.49 3220955715.48
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2024 2023
1. Total revenue 3695682593.56 4184851388.03
Including: Operating revenue 3695682593.56 4184851388.03
Interest income
Net earned premiums
Net fee and commission revenue
2. Total cost of sales 2389403151.73 2500157080.35
Including: Cost of sales 448479228.99 479905478.93
Interest expenses
Fees and commission expenses
Surrenders
Net payments for insurance claims
Net provision of insurance reserve
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 24707911.51 25074744.32
Selling expenses 980482774.25 1127241515.96
33Item 2024 2023
General and administrative expenses 312182573.76 314983930.97
Research and development expenses 757625465.26 679358601.39
Financial expenses -134074802.04 -126407191.22
Including: Interest expense 1639894.15 1561576.37
Interest income 100167430.25 90555821.67
Add: Other income 16400083.76 41385502.91
Investment income/(loss) 73242971.14 34921944.16
Including: Share of profits or loss of associates and joint ventures -13841708.75 9207061.64
Gain from derecognition of financial assets measured at
amortized cost
Exchange gains or losses
Net exposure hedging gains/ (losses)
Gain/ (loss) on the changes in fair value -11816645.41 -32966781.00
Credit impairment losses 347177.32 3727608.72
Assets impairment losses -101852983.95 -25895706.04
Gain/ (loss) from disposal of assets 21837.84 326039.11
3. Operating profit 1282621882.53 1706192915.54
Add: Non-operating income 6109433.41 576190.90
Less: Non-operating expenses 2215344.61 6800538.08
4. Profit/(loss) before tax 1286515971.33 1699968568.36
Less: Income tax expense 107588613.64 238876135.03
5. Net profit /(loss) 1178927357.69 1461092433.33
(1) Categorized by operation continuity
Net profit from continuing operations 1178927357.69 1461092433.33
Net profit from discontinuing operations
(2) Categorized by ownership
Net profit attributable to shareholders of the Company 944919757.13 1125119212.35
Net profit attributable to non-controlling interests 234007600.56 335973220.98
6. Other comprehensive income net of tax 16168648.05 14236742.09
(1) Other comprehensive income net of tax attributable to
14560154.7813665517.62
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 loss 14560154.78 13665517.62
Other comprehensive income that can be reclassified to profit or
3300287.663870111.84
loss in equity method
Changes in fair value of other debt investments 904387.10
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
10355480.029795405.78
statements
Others
(2) Other comprehensive income net of tax attributable to non-
1608493.27571224.47
controlling interests
7. Total comprehensive income 1195096005.74 1475329175.42
Total comprehensive income attributable to shareholders of the
959479911.911138784729.97
Company
Total comprehensive income attributable to non-controlling
235616093.83336544445.45
interests
34Item 2024 2023
8. Earnings per share
Basic earnings per share (yuan / share) 13.15 15.63
Diluted earnings per share (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 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2024 2023
1. Total revenue 357647674.92 358670329.43
Less: Total cost of sales 48285996.02 47110325.74
Taxes and surcharges 5050375.95 4621644.92
Selling expenses
Administrative expenses 49628847.90 49461736.62
Research and development expenses 124382705.86 119182218.79
Finance expenses -8304055.30 -13529502.51
Including: Interest expenses (expressed with positive value)
Interest income (expressed with positive value) 8144699.82 11999749.20
Add: Other income 2047908.85 23161446.02
Investment income/(loss) 468565992.15 643832058.16
Including: Share of profits or loss of associates and joint ventures -8919794.46 -45879868.75
Gain from derecognition of financial assets measured at amortized
cost
Net exposure hedging gains/ (losses)
Gain/ (loss) on the changes in fair value -2925038.39 -4565761.05
Credit impairment losses 1339931.97 -509115.93
Assets impairment losses
Gain/ (loss) from disposal of assets 979.59 419.03
2. Operating profit/Loss 607633578.66 813742952.10
Add: Non-operating income 9204.64 6345.58
Less: Non-operating expenses 1133277.11 1525892.86
3. Profit/(loss) before tax 606509506.19 812223404.82
Less: Income tax expense 4001399.68 14264764.61
4. Net profit /(loss) 602508106.51 797958640.21
(1) Net profit from continuing operations 602508106.51 797958640.21
(2) Net profit from discontinuing operations
5. Other comprehensive income net of tax 136670.22
(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
Changes in fair value of enterprise's own credit risk
(2) Other comprehensive income to be reclassified to profit or loss 136670.22
Other comprehensive income that can be reclassified to profit or
loss in equity method
Changes in fair value of other debt investments 136670.22
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)
35Item 2024 2023
Exchange differences on translation of foreign currency financial
statements
Others
6. Total comprehensive income 602644776.73 797958640.21
7. Earnings per share
(1) Basic earnings per share (yuan / share)
(1) Diluted earnings per share (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 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2024 2023
1. CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of
3959328716.834275602815.62
services
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 150891386.08 153020528.31
Sub-total of cash inflows from operating activities 4110220102.91 4428623343.93
Cash paid for purchase of goods and services 574742236.60 689290600.25
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 1092340038.95 1042923072.57
Cash paid for taxes 334875996.31 465104414.01
Cash paid relating to other operating activities 859624851.51 1045804273.43
Sub-total of cash outflows from operating activities 2861583123.37 3243122360.26
Net cash flows from operating activities 1248636979.54 1185500983.67
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from disposal of investments 7561018868.14 5032510000.00
Cash received from investment income 69515836.97 78529048.99
Net proceeds from disposal of property plant and equipment
75174.001310.00
intangible assets and other long-term assets
Cash received from disposal of subsidiaries and other business
units
Cash received relating to other investing activities
Sub-total of cash inflows from investing activities 7630609879.11 5111040358.99
36Item 2024 2023
Purchase of property plant and equipment intangible assets
23496173.7355673991.85
and other non-current assets
Cash paid for investments 8222344051.44 5545911111.00
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 8245840225.17 5601585102.85
Net cash flows from investing activities -615230346.06 -490544743.86
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from investment 63743604.71
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
Repayments for debts
Cash payments for distribution of dividends or profit and interest
754415956.501013195819.00
expenses
Including: Dividends or profit paid to non-controlling
288000000.00283992000.00
shareholders of subsidiaries
Cash payments relating to other financing activities 65922097.31 9796328.24
Subtotal of cash outflows from financing activities 820338053.81 1022992147.24
Net cash flows from financing activities -820338053.81 -959248542.53
4. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
43527048.9836832233.24
CASH EQUIVALENTS
5. NET INCREASE IN CASH AND CASH EQUIVALENTS -143404371.35 -227460069.48
Add: Cash and cash equivalents at beginning of year 2395180751.59 2622640821.07
6. CASH AND CASH EQUIVALENTS AT END OF THE YEAR 2251776380.24 2395180751.59
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 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
Item 2024 2023
1. CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering of
352536908.14311647085.47
services
Tax refunds received
Cash received relating to other operating activities 65510325.41 86859266.26
Sub-total of cash inflows from operating activities 418047233.55 398506351.73
Cash paid for purchase of goods and services 7232984.69 4520905.45
Cash paid to and on behalf of employee 179599915.81 182754174.90
Cash paid for taxes 41972342.95 54430631.86
Cash paid relating to other operating activities 22344394.81 24747344.33
Sub-total of cash outflows from operating activities 251149638.26 266453056.54
Net cash flows from operating activities 166897595.29 132053295.19
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from disposal of investments 1684500102.32 760500000.00
Cash received from investment income 517113107.17 735185796.88
Net proceeds from disposal of property plant and equipment
intangible assets and other long-term assets
37Item 2024 2023
Cash received from disposal of subsidiaries and other business
units
Cash received relating to other investing activities
Sub-total of cash inflows from investing activities 2201613209.49 1495685796.88
Purchase of property plant and equipment intangible assets and
1080677.383792909.09
other non-current assets
Cash paid for investments 1894117907.25 1098900000.00
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 1895198584.63 1102692909.09
Net cash flows from investing activities 306414624.86 392992887.79
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from investment 63743604.71
Proceeds from borrowings
Cash receipts relating to other financing activities
Subtotal of cash inflows from financing activities 63743604.71
Repayments for debts
Cash payments for distribution of dividends or profit and interest
466415956.50729203819.00
expenses
Cash payments relating to other financing activities 52447216.71 413368.72
Subtotal of cash outflows from financing activities 518863173.21 729617187.72
Net cash flows from financing activities -518863173.21 -665873583.01
4. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
-1533.56993.26
CASH EQUIVALENTS
5. NET INCREASE IN CASH AND CASH EQUIVALENTS -45552486.62 -140826406.77
Add: Cash and cash equivalents at beginning of year 171682308.46 312508715.23
6. CASH AND CASH EQUIVALENTS AT END OF THE YEAR 126129821.84 171682308.46
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting
Department: Chen Hualiang
38CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
2024
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
72041101.001400918753.3073375545.8636020550.502881486077.304463842027.96783766419.805247608447.76
of previous year
Changes in accounting
policies
Corrections of prior
period errors
Others
2. Balance at the
72041101.001400918753.3073375545.8636020550.502881486077.304463842027.96783766419.805247608447.76
beginning of the year
3. Increase/(decrease)
-2654739.9752171629.0014560154.78478503800.63438237586.44-52374086.02385863500.42
during the period
(1) Total
14560154.78944919757.13959479911.91235616093.831195096005.74
comprehensive income
(2) Shareholders’
contributions and 52171629.00 -52171629.00 -52171629.00
reduction
(i) Shareholders
‘contributions in 52171629.00 -52171629.00 -52171629.00
ordinary share
(ii) Other equity
instruments
contributions
(iii) Amount of share-
based payments
recognized in equity
(iv) Others
(3). Profit distribution -466415956.50 -466415956.50 -288000000.00 -754415956.50
(i) Transfer to surplus
reserve2024
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
-466415956.50-466415956.50-288000000.00-754415956.50
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 -2654739.97 -2654739.97 9820.15 -2644919.82
4. Balance at the end
72041101.001398264013.3352171629.0087935700.6436020550.503359989877.934902079614.40731392333.785633471948.18
of the period2023
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
reserve
(ii) Transfer to general
Reserve
(iii) Distribution to
-720402964.00-720402964.00-283992000.00-1004394964.00
shareholders
(iv) Others2023
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
(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 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 2024
Prepared by: G-bits Network Technology (Xiamen) Co. Ltd.Unit: RMB Yuan
2024
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 72041101.00 1210019236.80 -24035.06 36020550.50 1740356374.01 3058413227.25
Changes in accounting policies
Corrections of prior period errors
Others
2. Balance at the beginning of the year 72041101.00 1210019236.80 -24035.06 36020550.50 1740356374.01 3058413227.25
3. Increase/(decrease) during the period -6484.41 52171629.00 136670.22 136092150.01 84050706.82
(1) Total comprehensive income 136670.22 602508106.51 602644776.73
(2) Shareholders’ contributions and reduction 52171629.00 -52171629.00
(i)Shareholders’ contributions in ordinary share 52171629.00 -52171629.00
(ii)Other equity instruments contributions
(iii) Amount of share-based payments recognized in equity
(iv) Others
(3). Profit distribution -466415956.50 -466415956.50
(i) Transfer to surplus reserve
(ii) Distribution to shareholders -466415956.50 -466415956.50
(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 reserves2024
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 -6484.41 -6484.41
4. Balance at the end of the period 72041101.00 1210012752.39 52171629.00 112635.16 36020550.50 1876448524.02 3142463934.07
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 3058729.112023
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) 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 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
4. Balance at the end of the period 72041101.00 1210019236.80 -24035.06 36020550.50 1740356374.01 3058413227.25
Legal Representative: Lu Hongyan Chief Accountant: Lin Jiajin Head of Accounting Department: Chen Hualiang
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