37 Interactive Entertainment Network
Technology Group Co. Ltd.2024 Annual Report (Summary)
April 2025
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
1Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of 37 Interactive Entertainment Network Technology Group
Co. Ltd. (hereinafter referred to as the “Company”) hereby guarantee the truthfulness accuracy
and completeness of the contents of this Report and shall be jointly and severally liable for any
misrepresentations misleading statements or material omissions therein.Xu Zhigao the Company’s legal representative and Ye Wei the Company’s Chief Financial
Officer & Board Secretary hereby guarantee that the financial statements carried in this Report
are truthful accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report.Huaxing Certified Public Accountants LLP has issued an unqualified audit report with an
emphasis of matter paragraph for the Company for which the Company's Board of Directors and
Supervisory Committee have provided detailed statements. And investors are advised to pay
attention to the said contents.Any plans and other forward-looking statements in this Report shall not be deemed as
promises to investors. Investors and other stakeholders shall be fully aware of the risk and
understand the difference between plans forecasts and promises. Most of these forward-
looking contents can be found in “XI Prospects” of “Part III Management Discussion and Analysis”
herein.The Company is subject to the disclosure requirements for listed companies engaged in
software and IT services.The Board has approved a final dividend plan as follows: based on the total issued share
capital (exclusive of shares in the Company’s account for repurchased shares) on the date of
record a cash dividend of RMB 3.70 (tax inclusive) per 10 shares is planned to be distributed to
all the shareholders of the Company with no bonus issue from either profit or capital reserves.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
2Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 4
Part III Management Discussion and Analysis ......... 8
Part IV Corporate Governance ....................... 36
Part V Environmental and Social Responsibility ..... 55
Part VI Share Changes and Shareholder Information .. 58
Part VII Financial Statements .......................65
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
3Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name 37 Interactive Entertainment Stock code 002555
Place of listing Shenzhen Stock Exchange
Company name in Chinese 三七互娱网络科技集团股份有限公司
Abbr. 三七互娱
Company name in English (if
37 INTERACTIVE ENTERTAINMENT NETWORK TECHNOLOGY GROUP CO.LTD.
any)
Legal representative Xu Zhigao
Registered address Room 7001 7/F Tower B1 Wanjiang Fortune Plaza 88 Ruixiang Road Wuhu City Anhui Province
Zip code 241000
For business development purposes the registered address of the Company has changed from“11/F Creative Advertising Complex Wuhu Advertising Industrial Park Middle Beijing RoadChange of registered addressJiujiang District Wuhu City Anhui Province” to “Room 7001 7/F Tower B1 Wanjiang FortunePlaza 88 Ruixiang Road Wuhu City Anhui Province” on 31 March 2022.Office address Room 7001 7/F Tower B1 Wanjiang Fortune Plaza 88 Ruixiang Road Wuhu City Anhui Province
Zip code 241000
Company website https://www.37wan.net/
Email address ir@37.com
II Contact Information
Board Secretary Securities Affairs Representative
Name Ye Wei Wang Sijie
Room 7001 7/F Tower B1 Wanjiang Room 7001 7/F Tower B1 Wanjiang
Office address Fortune Plaza 88 Ruixiang Road Wuhu Fortune Plaza 88 Ruixiang Road Wuhu
City Anhui Province City Anhui Province
Tel. 0553-7653737 0553-7653737
Fax 0553-7653737 0553-7653737
Email address ir@37.com ir@37.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is China Securities Journal Shanghai Securities News Securities Times and
disclosed Securities Daily
Media and website where this Report is disclosed http://www.cninfo.com.cn
Room 7001 7/F Tower B1 Wanjiang Fortune Plaza 88 Ruixiang Road
Place where this Report is lodged
Wuhu City Anhui Province
IV Change to Company Registered Information
Unified social credit code 91340200713927789U
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
4Changes to the principal activities of the
No changes in the Reporting Period
Company since going public (if any)
Every change of controlling shareholder
No changes in the Reporting Period
since incorporation (if any)
V Other Information
The independent auditor hired by the Company:
Name Huaxing Certified Public Accountants LLP
7-9/F Tower B Zhongshan Building 152 Hudong Road Gulou District Fuzhou City Fujian
Office address
Province
Accountants writing signatures Zhang Fengbo and Gao Yunjun
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □ Not applicable
Name Office address Representative Period of supervision
24/F 318 South Zhongshan From 10 March 2021 until
Orient Securities Company
Road Huangpu District Wang Bin and Wang Dehui the proceeds of the private
Limited
Shanghai placement are used up
The financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes □ No
2024 2023 2024-over-2023 change (%) 2022
Operating revenue (RMB) 17440957495.58 16546871737.85 5.40% 16406034152.65
Net profit attributable to
the Listed Company’s 2673021327.30 2658570193.44 0.54% 2954377452.38
shareholders (RMB)
Net profit attributable to
the Listed Company’s
shareholders after 2591270839.95 2497299725.79 3.76% 2883122221.75
deducting non-recurring
profits and losses (RMB)
Net cash flows from
2997982682.733147037336.46-4.74%3557168897.26
operating activities (RMB)
Basic earnings per share
1.211.200.83%1.34
(RMB/share)
Diluted earnings per share
1.211.200.83%1.34
(RMB/share)
Weighted average return
20.58%20.83%-0.25%25.41%
on equity (%)
Change of 31 December
31 December 2024 31 December 2023 2024 over 31 December 31 December 2022
2023(%)
Total assets (RMB) 19582691938.40 19134551079.36 2.34% 17095183320.91
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
5Equity attributable to the
Listed Company’s 12920729844.38 12706945475.87 1.68% 12184007604.82
shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the Listed Company’s shareholders before and after
deducting non-recurring profits and losses was negative for the last three accounting years and the latest independent auditor’s
report indicated that there was uncertainty about the Company’s ability to continue as a going concern.□ Yes □ No
Indicate by tick mark whether the lower of the net profit attributable to the Listed Company’s shareholders before and after
deducting non-recurring profits and losses was negative.□ Yes □ No
VII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 4750141063.60 4481828025.84 4107396586.92 4101591819.22
Net profit attributable to the
Listed Company’s 616151756.28 648481822.67 632833102.61 775554645.74
shareholders
Net profit attributable to the
Listed Company’s
shareholders after deducting 615975014.06 658657652.80 602298270.38 714339902.71
non-recurring profits and
losses
Net cash flows from
1170121295.13959062219.86137734103.07731065064.67
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from
what have been disclosed in the Company’s quarterly or interim reports.□ Yes □ No
VIII Non-recurring Profits and Losses
□ Applicable □ Not applicable
Unit: RMB
Items 2024 2023 2022 Note
Gain or loss on disposal of non-
current assets (inclusive of 1370429.32 2836160.40 2302146.59
impairment allowance write-offs)
Government grants recognized in
profit or loss (exclusive of those that
are closely related to the Company's
Mainly due to
normal business operations and
government grants
given in accordance with defined 73289931.28 59144627.86 44774565.68
other than the rebates
criteria and in compliance with
of value-added tax
government policies and have a
continuing impact on the Company's
profit or loss)
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
6Gain or loss on fair-value changes in
financial assets and liabilities held by
a non-financial enterprise as well as
on disposal of financial assets and
8600080.44113869356.6640786428.45
liabilities (exclusive of the effective
portion of hedges that is related to
the Company's normal business
operations)
Reversed portions of impairment
allowances for receivables which are 1626737.10 4029906.92
tested individually for impairment
Non-operating income and expenses
-2212101.117082898.99-7376565.55
other than the above
Less: Income tax effects 9148746.86 25007516.39 16473069.34
Non-controlling interests effects
-8224157.18-3344940.13-3211817.88
(net of tax)
Total 81750487.35 161270467.65 71255230.63 --
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
7Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
The Company is subject to the disclosure requirements for listed companies engaged in software and IT services as stated in
Guideline No. 3 of the Shenzhen Stock Exchange for Self-regulation of Listed Companies—Industry-specific Information Disclosure.
1. Steady growth in domestic and overseas markets; high-quality development of the gaming industry
According to the 2024 China’s Game Industry Report released by the Game Publishing Committee of China Audio-video and
Digital Publishing Association (CADPA) in 2024 the actual sales revenue of the domestic gaming market reached RMB325783
million representing a year-over-year (YoY) increase of 7.53% and setting a new record. The number of game users totaled 674
million a YoY increase of 0.94% also reaching a historical high.In 2024 the mini-game segment continued its explosive growth with several outstanding products emerging. These games
expanded into previously untapped user demographics within existing application scenarios. Their accessible entry points more
precisely and effectively attracted target players while fragmented gameplay and lightweight user experiences introduced more
casual gaming modes. These features met users’ demand for light fragmented entertainment and brought new growth potential
to the gaming industry. In 2024 revenue from domestic applet games amounted to RMB39836 million a YoY growth of 99.18%
indicating that the sector remains in a rapid growth phase.In 2024 Chinese gaming companies proactively coped with a growth slowdown and increasingly fierce competition in the
global gaming market. Revenue of self-developed Chinese games in overseas markets reached USD18557 million a YoY increase
of 13.39% surpassing RMB100 billion for the fifth consecutive year and setting another record high. The United States Japan
and South Korea remained the primary overseas markets for Chinese mobile games accounting for 31.06% 17.32% and 8.89%
of total revenue respectively. Among the top 100 self-developed mobile games in terms of overseas revenue strategy games
accounted for 41.38% shooting games for 10.40% and role-playing games for 10.37%. These three categories have remained
the top three for five consecutive years.
2. Policy-guided healthy development driven by both culture and technology
In 2024 policies continued to guide the gaming industry towards boutiqueization and high-quality healthy development. In
July 2024 the Third Plenary Session of the Twentieth Central Committee of the Communist Party of China approved the Decision
of the Central Committee of the Communist Party of China on Further Deepening Reforms in a Comprehensive Way and
Promoting Chinese-Style Modernization which put forward further requirements for improving the systems and mechanisms for
promoting high-quality economic development and deepening the reform of the cultural system.In August 2024 the State Council issued the Guideline on Boosting High-quality Development of Service Consumption
(hereinafter referred to as the “Guideline”). The Guideline outlined several key tasks aimed at boosting the vitality of life-enhancingconsumption including cultural and entertainment consumption. Furthermore the Guideline calls for more efforts to “improve thequality of online literature online performances online games radio and television programs and online audiovisual services” and“encourage the development of new business formats such as immersive experiences script-based entertainment digital art andonline performance live-streaming”. These initiatives are expected to further boost high-quality development in the industry.In March 2025 the General Office of the CPC Central Committee and the General Office of the State Council issued the SpecialAction Plan for Boosting Consumption proposing to “strengthen consumption brand leadership. Focus on commerce logisticsculture and tourism and other service sectors and formulate targeted policies to enhance service quality. Develop more Chinese
service brands. Integrate outstanding traditional Chinese culture into product design support the development of original
intellectual property (IP) brands promote consumption of animation games e-sports and their derivative products and expand
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
8domestic and international markets for fashionable domestic brands”.
On one hand Chinese game developers are committed to creating high-quality games exploring innovative integrations of
culture and gaming and promoting the inheritance and development of outstanding traditional Chinese culture. On the other hand
emerging technologies represented by artificial intelligence have brought new opportunities to China’s gaming industry.In response to national policies the Company has earnestly implemented management requirements. It delved into the
essence of traditional culture in game R&D and operational strategies. And it has actively sought to integrate cultural significance
into player experiences and apply innovative technologies to achieve mutual empowerment of cultural and industrial value.For example the Company incorporated Cantonese culture Anhui-style culture the ancient Maritime Silk Road and Peking
opera facial makeup into its globally published game Trading Legend (叫我大掌柜) helping overseas players gain a deeper
understanding of Chinese culture. Furthermore it actively explored the "Games+" integrated development model of "technology +
cultural tourism" to facilitate the promotion of cultural tourism in cities such as Guangzhou Huangshan and Wuhu. During the
Reporting Period the Company’s game Xun Dao Da Qian (寻道大千) incorporated the spectacular scenery of Huangshan into in-
game scenes. By combining online and offline experiences the game allowed players to feel the rich historical context of
Huangshan and promoted diverse expressions of culture through gaming.The Company also launched innovative cultural tourism campaigns such as the “CongMei City Tour Program—Wuhu” and the
“Wuhu Intelligent Manufacturing Industrial Tour” to facilitate the digital communication and inheritance of traditional culture and
cultural-tourism consumption in the new era. Additionally under the guidance of the Guangzhou Municipal Cyberspace
Administration 37 Interactive Entertainment hosted the “Intangible Heritage Guangzhou Red” online promotional campaign which
showcased the charm of intangible cultural heritage through innovative formats. These included a digital culture experience
exhibition AI co-creation experiences and in-game collaborations with Shi Guang Za Huo Dian (时光杂货店) connecting tradition
and modernity integrating intangible heritage into daily life and expanding its cultural influence.As AI technology continues to mature the development of games in sync with AI has become increasingly prominent.Technological innovation in AI is increasingly seen as a key factor in the global competitiveness of products. The Company adheres
to technology-driven innovation and explores the potential for deep integration of AI and other emerging technologies with the
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
9Company's business. Also it improves work efficiency and promotes organic innovation capabilities. During the Reporting Period
the Company played a significant role in drafting the association standard—Compliance Guidelines for Data Application of
Generative Artificial Intelligence. This standard offers companies a valuable reference for their compliant application of generative
AI helping to enhance their data security capabilities.In terms of protection for minors apart from implementing the real-name authentication system and anti-addiction
requirements required by competent authorities the Company has strengthened protection for minors by consistently improving
and upgrading its protection system for minors. We have always advanced various tasks in a proactive and positive manner to
ensure minors are well-protected in cyberspace. The Company has rolled out an upgraded version of the "real-name registration
and anti-addiction system for minors" for our proprietary platforms. Additionally we have optimized the logo and wording of the
"age-appropriate prompt". Meanwhile the Company has refined and upgraded our "Parent Monitoring Platform" optimized our
customer service procedures and aided guardians in queries and verification all aimed at creating a clean and healthy cyberspace
for minors.The Company has remained focused on its core business and deepened its "integration of R&D and operation" strategy. We
have continued to enhance our capability of producing quality games solidify our core competitive edge in overseas expansion
and explore possibilities of integrating technology into our business by leveraging resources both within and outside the technology
domain. With steady strides we have advanced high-quality and sustainable business development dedicated to offering the
public a wealth of premium cultural content.II Principal Operations of the Company in the Reporting Period
The Company specializes in the development and publishing of games for global players with the excellent game development
brand “Three Seven Games” as well as professional game publishing brands “37Mobile” “37GAMES” and “37Online”. The
Company precisely grasped the industry development trends made continuous improvements in operation and remained a top
performer in the industry while adhering to the "boutiqueization diversification and globalization" strategy. For the Reporting
Period the Company recorded operating revenue of RMB17441 million a YoY increase of 5.40% and a net profit attributable to its
shareholders of RMB2673 million a YoY increase of 0.54%.
37 Interactive Entertainment
Three Seven Games 37Mobile 37GAMES 37Online
(game development) (publishing of mobile (overseas publishing) (publishing of mobile &
games) browser games)
(I) Overview of the principal operations of the Company in the Reporting Period
1. Continuously enhancing the long-term operation of diverse products
In response to industry trends the Company has consistently adhered to the "diversification" strategy understanding the
demands of diverse user bases and continuously expanding its user base. By tapping into new markets and nurturing new growth
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
10drivers we have continuously pushed back the boundaries of our game genres. In addition to delving into the existing four
primary genres: Massive multiplayer online role playing games (MMORPGs) strategy games gacha games and business
simulation games we have developed games where RPG casual and puzzle elements are incorporated. These diverse and
lightweight games have diversified player experiences. During the Reporting Period the Company’s globally published mobile
games achieved peak monthly gross billing of over RMB2.3 billion.During the Reporting Period the Company released the anniversary version of its Chinese-style fun cultivation game Xun
Dao Da Qian (寻道大千). Combining teamwork-based social interaction with strategy gameplay this version featured deepened
content and increased engagement enhancing user stickiness. This version also saw an in-depth collaboration between the game
Xun Dao Da Qian (寻道大千) and other popular IPs such as the novels Soul Land and A Record of a Mortal’s Journey to
Immortality the animated movie Ne Zha and Boonie Bears. The differentiated content and customized integration have offered
players immersive experiences and new unique gameplay. As a result the game achieved long-term operation through brand
empowerment and social interaction established a diversified and sustainable user operation system and helped the Company
garner leading experience in the mini-game domain.In August 2024 the modern-themed simulation mobile game Shi Guang Za Huo Dian (时光杂货店) was published by the
Company as the agent. Fully recreating the 1990s the game offers players a chance to relive childhood memories. To ensure
better immersive experiences for players the Company forged collaborations between the game and popular film and TV
productions. This has further enhanced the Company’s edge in publishing and operating business simulation games.During the Reporting Report the Company celebrated the third anniversary of its self-developed card mobile game The Soul
Land: Hun Shi Dui Jue (斗罗大陆：魂师对决). To mark that special occasion the Company introduced new soul masters and
gameplay revolving around the “Tang San’s Journey to Becoming a God” storyline in the original work. This update evoked a
sense of nostalgia among users for the IP increasing the number of the game’s daily active users and prolonging the product life
cycle.Regarding the mobile game Fan Ren Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇) the Company launched its
anniversary version in mid-2024 which featured new content of the Immortality Chapter and was published using a traffic
management-centric approach. This has not only helped the Company expand its active user base but has also allowed it to
continuously improve the game’s ecosystem and enrich players’ experiences. The game has thus become a flagship product in the
Company’s cultivation-themed massively multiplayer online role-playing game (MMORPG) lineup.Trading Legend (叫我大掌柜) a Chinese-style simulation mobile game of the Company has successfully converted new
players through an engaging and nostalgic marketing approach and intellectual property (IP) collaborations. By creating a long-
term ecosystem with a focus on user interactions this game has consistently sparked a boom. On the game’s third anniversary a
“palace version” featuring ancient palace elements was released. In this version players role-play as minor palace characters and
climb the ranks. This version has helped the Company expand its user base and prolong the game’s life cycle further
demonstrating the Company’s capability of long-term operation. During the Reporting Period the Company also deeply
integrated Anhui-style intangible cultural heritage into the gameplay and promotion of Trading Legend (叫我大掌柜) creating
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
11another exemplary case of mutual empowerment between games and traditional culture.
We adopted an innovative marketing approach combined with top-tier celebrity endorsements for Ba Ye (霸业) one of our
self-developed strategy mobile games on the theme of the Three Kingdoms. With a constant stream of creative materials this
game saw a growing player base helping the Company stabilize the structure of its strategy game portfolio.Ling Hun Xu Zhang (灵魂序章) the self-developed game based on the Soul Land IP reinterpreted the classic fun of the Soul
Land IP through lightweight gameplay continuously offering new game content for IP fans and establishing a benchmark for
lightweight gaming under the “integration of R&D and operation” strategy.Regarding the 3D realistic ant-themed strategy mobile game Underground Kingdom (小小蚁国) the Company has
continuously optimized its mechanics to help players gather resources more efficiently and make the overall gaming experience
more seamless. This optimization has reduced the daily quest burden on players improved long-term player retention and
ensured steady operations.The Company consistently adheres to long-term operation providing players with meticulous and comprehensive long-term
services. It deeply integrates the highlights of its intellectual property (IP) to continuously innovate in terms of reflow methods
and activities consistently prolonging the product life cycle and igniting product vitality. This demonstrates the Company’s strong
capabilities of long-term game operation.
2. Continuously exploring global market opportunities and promoting the mutual empowerment between games and culture
During the Reporting Period the Company achieved overseas operating revenue of RMB5722 million. The Company
drawing upon its years of experience in overseas expansion has continuously explored its overseas markets in line with the
"tailored games" strategy. It continued to seek growth opportunities in the overseas market achieved regional breakthroughs
and continued to refine its long-term operation strategy. We have consolidated our strengths in sectors such as MMORPGs
strategy games gacha games and business simulation games and opened up opportunities in the casual game market thereby
boosting the steady growth of our overseas business.Puzzles & Survival a phenomenal product launched overseas by the Company integrates “Match-3 gameplay + SLG”
demonstrating strong competitiveness and wide user appeal across multiple international markets. It performed especially well
in key regions including Hong Kong Macao and Taiwan of China Europe and North America Japan South Korea and Vietnam. It
ranked among the top 8 outbound mobile games by revenue on the Sensor Tower 2024 leaderboard highlighting its exceptional
market performance and commercial value. Since its launch in 2020 Puzzles & Survival has generated over RMB10 billion in gross
billing showcasing its global brand presence and growth potential.During the Reporting Period the Company continued to explore player preferences and market trends within the strategy
game genre to iterate high-quality products through theme diversification and gameplay differentiation. For example as an
iteration of Puzzles & Survival Puzzles & Chaos integrates “Match-3 gameplay + SLG” while retaining the core experiences of
Puzzles & Survival. Compared to its predecessor Puzzles & Chaos features greatly enhanced art design and special effects. Since
its launch the game has consistently broken new ground in overseas markets with growing gross billing ranking among the top
20 strategy games in different regions worldwide multiple times.
The ant-themed game Ant Legion aims to represent a realistic and detailed insect world. By delving into player demands
through preliminary research and considering the R&D and operational capacity the Company has developed an immersive ant
world-themed version. In this version players build ant colonies fend off predators and lead their ant armies to conquer the
challenging natural environment securing victories one after another. These continuous breakthroughs have led to a steady rise
in player satisfaction.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
12The Company has deeply integrated the gameplay themes and promotional materials of its products with excellent
traditional Chinese culture. This approach creates a communication method that resonates with diverse regional national and
audience groups promoting the global expression of Chinese stories.For example the game Trading Legend (叫我大掌柜) has demonstrated the Company’s commitment to carrying forward
traditional Chinese culture. During the Reporting Period the Company initiated collaborations between the game with the classic
costume drama The Legend of Zhen Huan and the Chinese comic book Fox Spirit Matchmaker. The game incorporated hot pot a
key element of Chinese culinary culture into its content and launched a promotional video featuring Sichuan’s intangible cultural
heritage art of jin qian ban (brass coin clapper talk). The goal is to bring distinctive gameplay to global players giving them an
immersive taste of Chinese culture. During the Reporting Period Puzzles & Survival collaborated with the national-level
intangible cultural heritage project Guangzhou-Style Color Porcelain to launch a themed version showcasing this traditional craft
representing an innovative expression of Chinese traditional culture. The casual incremental mobile game Xiao Yao Wen Dao (小
妖问道) features meticulously customized promotions in localities and thematic packaging. Through collaboration with popular
fantasy IPs such as Soul Land and A Record of a Mortal’s Journey to Immortality this game has contributed to cultural exchanges
achieved impressive market performance and garnered positive feedback from international players. These have laid a solid
foundation for the Company’s expansion into overseas markets of casual incremental games.
3. Building a rich product pipeline for the global market
The Company focuses on its core gaming business. On one hand it continuously expands the boundaries of self-
development capabilities actively expands into various categories and develops products with a global perspective. It carefully
works out details regarding gameplay design art quality music effects etc. continues to invest in product iteration user
experience and other aspects and has formed professional layouts in MMORPGs strategy games and light games. Remaining
"Dedicated to Making Premium Games" it has a strong pipeline of refined self-developed mobile games. On the other hand
based on its self-developed brands the Company consistently prioritizes high-quality content as its strategic direction. Through
multi-dimensional approaches such as investment empowerment and business support the Company has carried out in-depth
collaborations with reputable game developers such as EyuGame and Yanqu Network. This approach has allowed the Company to
accumulate abundant external R&D reserves which is conducive to its diversified arrangements for product supply. In terms of IP
the Company has secured adaptation rights for several IPs including Battle Through the Heavens (斗破苍穹) Lord of Mysteries
(诡秘之主) and Soul Land (斗罗大陆) providing a richer content foundation for building a diversified product portfolio.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
13The Company has built a portfolio of games across genres such as MMORPGs strategy games gacha games and business
simulation games. These games cover diverse themes including western fantasy oriental fantasy Three Kingdoms modern
themes and ancient themes. These include: the Chinese comic oriental fantasy MMORPG The Soul Land: Lie Hun Shi Jie (斗罗大
陆：猎魂世界) the Japanese Chibi-style MMORPG Code MLK (代号 MLK) the realistic Three Kingdoms SLG Code Zheng Qi SLG
(代号正奇 SLG) the American cartoon-style survival SLG Code XSSLG (代号 XSSLG) the oriental fantasy SLG Code GMSLG (代号
GMSLG) the traditional Chinese ink painting-themed business simulation game Zhui Xu (赘婿) the oriental fantasy RPG Code
Dou Po (代号斗破) and the oriental fantasy RPG Code Po Jian (代号破茧).The Company is currently accelerating the release schedule of its reserved products aiming to deliver a more diversified
gaming experience for players. In early 2025 several titles including Shi Guang Da Bao Zha (时光大爆炸) and Ying Xiong Mei You
Shan (英雄没有闪) were launched successively. Among them Shi Guang Da Bao Zha (时光大爆炸) ranked fourth on the WeChat
mini-game grossing chart while Ying Xiong Mei You Shan (英雄没有闪) quickly entered the top five of the iOS grossing chart and
topped the WeChat mini-game grossing chart demonstrating strong growth potential.Looking ahead certain key games in the pipeline are presented below:
Intended
Developer Name of game Game category theme and style publishing
area
Self- The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎
Chinese comic oriental fantasy MMORPG Global
developed 魂世界)
Self-
Lost Archive: Prologue (失落之门：序章) Western fantasy MMORPG Global
developed
Self-
Code MLK (代号 MLK) Japanese Chibi-style MMORPG Global
developed
Self-
Code Zheng Qi SLG (代号正奇 SLG) Realistic Three Kingdoms SLG Global
developed
Self- Casual game with European and American cartoon
Code M1 (代号 M1) Global
developed elements
Self-
Code MR (代号 MR) Chibi-style RPG Global
developed
Self-
Code DLXD (代号 DLXD) Chibi-style fantasy RPG Global
developed
Self-
Code XSSLG (代号 XSSLG) American cartoon survival SLG Global
developed
Self-
Code GMSLG (代号 GMSLG) Oriental fantasy SLG Global
developed
Self- Ji Su San Guo: Yi Miao Kai Zhan (極速三國：
Three Kingdoms SLG Overseas
developed 一秒開戰)
Agency Code Dou Po (代号斗破) Oriental fantasy RPG Domestic
Traditional Chinese ink painting-style business
Agency Zhui Xu (赘婿) Domestic
simulation game
Agency Shi Shi Da Lu (史诗大陆) Western fantasy RPG Domestic
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
14Agency Battle of Chibi 2 (赤壁之战 2) Three Kingdoms-themed SLG Domestic
Agency Si Ji Cheng Yu Duo Mi Nuo (四季城与多米糯) Chibi-style fantasy business simulation game Domestic
Agency Code Po Jian (代号破茧) Oriental fantasy RPG Domestic
Agency Dou Shou Zhan Chang (斗兽战场) Giant-themed SLG Domestic
Agency Cong Qian You Zuo Shan (从前有座山) Oriental fantasy MMORPG Domestic
Agency Code RS (代号 RS) Realistic survival SLG Overseas
Agency Code AK (代号 AK) Realistic microworld SLG Overseas
Agency Code AS (代号 AS) Mechanized beast realistic SLG Overseas
Agency Shi Guang Da Bao Zha (时光大爆炸) Oriental history-themed business simulation game Overseas
Agency Ragnarok: Back to Glory Chibi-style Norse mythology MMORPG Overseas
Modern cartoon seaside resort-themed match-3
Agency Seaside Resort: Match 3 Overseas
game
4. Leveraging cutting-edge technological advantages and business applications
(1) Continuous upgrades to the AI capability system and the development of a comprehensive AI empowerment
ecosystem based on a self-developed industry-specific large language model
As one of the earliest game companies in China to systematically adopt AI technologies the Company places a high strategic
emphasis on the deployment and application of big data and AI technologies. After years of technological accumulation and
business practice the Company has established an AI architecture centered on the AI capability foundation which covers the
intelligent product layer and business application layer forming a full-link AI empowerment system for game R&D and operation.This system comprehensively enhances the industrialization level of the Company’s game R&D and operation.Building the AI capability foundation: Based on deep data accumulation from business scenarios and computility
investment the Company continuously conducts internal training and inference optimization on the massive high-quality data
accumulated over the years independently developing the gaming-specific large language model “Xiao Qi”. The Company using
“Xiao Qi” and incorporating an advanced external large language model cluster has developed more than 40 AI capabilities. This
AI capability foundation fully empowers various general and specialized systems across the Company following the technology
iteration path of chatbot/tool-copilot-agent-digital labor.Upgrade of the intelligent product matrix: Based on the industry-specific large language model “Xiao Qi” the Company has
comprehensively upgraded its existing intelligent products including “Turing” “Quantum” “Destiny” “Yi Lan” and “Cupid” into
more automated and intelligent AI agents. These upgrades span across business areas such as market analysis product planning
art design development assistance advertising operational analysis intelligent customer service and general office tasks. The
upgraded AI agents can generate images videos and 3D materials that meet the Company's product needs accurately support
advertising campaigns and perform excellently in code generation and text creation thus fully empowering game R&D and
operation.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
15(2) AI reshapes the game pipeline for quality and efficiency enhancement across multiple dimensions
At the business application layer the Company has leveraged AI technology to achieve intelligent production and application
across various content formats including AI-multimodal AI-text and AI-comprehensive categories. For example in the publishing
process over 80% of the 2D art assets used by the Company are now generated using AI technology as a support. In terms of AI-
3D generation the Company was also an early adopter of tools and 3D model training continuously increasing the proportion of
AI-3D applications with mature use of art assets such as characters and item models. AI-3D assisted asset generation accounts
for more than 30%. In 2024 the effectiveness of AI-generated videos became evident with more than 70% of the Company’s in-
game advertising videos involving AI in their generation. In addition text-based scenarios such as AI customer service AI
translation and AI code generation have shown continuous improvement while comprehensive applications such as AI
advertising and AI data analysis have also been gradually implemented.In terms of R&D AI algorithms have been employed to capture high-precision and high-performance motions and the
capture function for facial expressions has been introduced addressing the pain points such as high costs and overly long periods
typically identified with specialized traditional motion capture equipment. This has enhanced both R&D efficiency and quality. In
terms of AI balance testing many of our self-developed products such as The Soul Land: Hun Shi Dui Jue (斗罗大陆：魂师对决)
Ba Ye (霸业) The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界) and Code MLK (代号 MLK) have benefited from the AI-
assisted stat balance testing function with improved training efficiency and access process resulting in better player experiences
and prolonged game life cycles. At the same time the Company continues to research 2D art algorithms related to 2D visual
effects style transfer and 2D animation asset generation to simplify 2D game development processes. AI Agents are also used to
assist game planners in writing and skill design thereby enhancing the effectiveness of gameplay design.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
16In general office scenarios the Company’s AI assistant based on the large language model of “Xiao Qi” is extensively
applied in employees’ daily work comprehensively improving efficiency. This represents a new level of intelligent transformation
in corporate operation.As the Company continues to promote AI applications AI reshapes the workflow of each business link and improves the
level of automation. As AI technologies continue to deepen in business applications the optimization and upgrading of all
business pipelines have enabled teams to focus more on creativity and emotional expression. With the industry’s ongoing
technological iteration and innovation the Company will continue to explore the implementation of advanced AI capabilities in
reasoning and decision-making providing deeper support and assistance for the efficient operation of all stages of game
development and publishing.
(3) AI drives game innovations
Supporting Game Project Initiation: During the early stages of game project establishment and new version updates of
operating products the Company utilizes AI technology to assist in designing game characters combat scenarios and game items.This optimizes characters gameplay environments animation effects and style testing outcomes thereby enhancing the
efficiency of project approval and version update processes.Exploration of AI Full-Element Generated Games: The Company is currently developing an iterative version of a casual tile-
matching game using reasoning large language models and generative multimodal models of which the game plot art
programming music and other elements were completed by AI. On top of the original full-element AI generation this new
version adds functionality that allows real-time content generation based on user preferences thereby creating a non-linear
gaming experience. Just as users receive different video recommendations when browsing short videos each player in this mode
can experience a personalized story progression realizing a “one player one narrative” model. The Company continues to
improve and optimize this innovative exploration of "AI+game" aiming to integrate multimodal content generation data
algorithm models and game development to improve R&D efficiency. At the same time relying on AI generation and personalized
recommendations it accurately grasps user needs provides a new interactive experience and builds key technology reserves for
commercial products in the future.Development of a General AI Solution for In-Game Housing Systems: The Company is continuously integrating technologies
such as large language models AI voice and AI motion capture to develop intelligent NPC systems and AI-powered in-game
housing systems. It is exploring the convergence of games with UGC content creation aiming to enable NPCs to perform
autonomous behaviors based on compound reasoning and to provide players with emotional companionship and personalized
interactive experiences. Players can enjoy character development story and scene design item creation and other innovative
social interaction experiences within increasingly enriched housing systems laying a technological foundation for more diverse
and personalized gameplay in the future.The Company is actively exploring innovative applications of AI in gaming. At present it continues to accumulate
technological reserves for future AI game products through technological verification and capability accumulation while building
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
17a capability foundation for the implementation of commercial products in the future. Under the premise of ensured technological
feasibility it explores paths for deep integration between AI and game content and focuses on the potential of AI in enhancing
gameplay and interactive experience with the aim of delivering more immersive and personalized gaming experiences to users.
5. Empowering business innovation and sustainable development through investment
Benefiting from our pioneering strides in the exploration of AI applications we have remained open-minded about
transformations in industry technologies and ecosystems. Marching forwards steadily and surely we have insisted on a
progressive layout of AI applications and continuously iterated and optimized innovative tools in better alignment with the
Company's business development requirements. Furthermore taking into consideration the requirements of each business
process we have been exploring the in-depth integration of advanced technologies and business.In recent years the global AI technology sector has entered a new stage of development. Riding the technological
transformation trend the Company advances both independent exploration and internal development. Meanwhile the Company
focuses its investment arrangements in such areas as foundational large language models AIGC AI application AI computility XR
and interactive sensors. This approach helps the Company capture innovation opportunities for cutting-edge technologies and
promote collaboration and connection between its investment activities and principal business.The Company invests in large language models and application layers and continually explores the applicability of these
models and AI technologies to the Company’s R&D line. Specifically the Company has directly or indirectly invested in leading
companies such as Zhipu AI Baichuan AI Moonshot AI aiXcoder DeepLang AI Yahaha Studio 51 and DeepMirror Technology.Supported by foundational large language models the Company strives to unlock the potential of AIGC to empower diverse
vertical scenarios. Furthermore the Company is actively building an industrial chain of “AI + computility”. To this end it has
invested in firms such as iStar CIX Tingyu Tech Huixi HYQ and Eeasy Tech. These investments aim to build an integrated
industrial chain linking computility infrastructure large language model algorithms and AI applications.The Company continuously monitors hardware and technological advancements with a strong focus on hard & core
technology and emphasizes business synergy. It has invested in cultural entertainment and high-tech sectors such as
computility optical displays extended reality (“XR”) devices cultural and entertainment content semiconductors and materials
spatial computing engines AI new sensing technology and AIGC-based social platforms for games. The Company’s goal is to
empower innovative and sustainable business growth through investments thereby forging new competitive edges in the
industry.(II) The Company’s principal operations and business models
The Company is principally engaged in the development publishing and operation of online games (mostly mobile and
browser games). The business models of the Company’s online games mainly include independent operation and third-party joint
operation.Under the independent operation mode the Company obtains the licenses of games through independent R&D or being an
operator of other games and publishes and operates these products through its own or third-party channels. The Company is fully
responsible for the operation promotion and maintenance of the games; providing unified management services for online
promotion online customer service and top-up payment; and updating games along with game developers based on the real-time
feedback of users and games.Under the third-party joint operation mode the Company cooperates with one or more game operators or game application
platforms to jointly operate games. And the aforesaid parties are responsible for the management of their own channels including
operation promotion the recharge and charge system while the Company provides technical support services along with game
developers.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
18(III) The Company’s presence on the market and primary growth drivers
Focusing on cultural and creative businesses based on the development publishing and operation of online games the
Company is an excellent comprehensive entertainment provider in China’s A-stock market. It is a Top 20 Global Public Game
Company Key Cultural Export Company of China Civilized Institution in Guangdong Province and Top 30 Cultural Enterprise of
Guangzhou and MSCI ESG AA-rated company among others. With “bringing joy to the world” as its mission the Company is
dedicated to becoming an excellent and sustainable entertainment provider.The Company has been steadily advancing with the development strategy of “boutiqueization diversification andglobalization” and promoting high-quality and sustainable development.III Core Competitiveness Analysis
1. Forging ahead with determination the team has seized market opportunities swiftly
The Company has been deeply engaged in the cultural and creative industry for many years. Its core management team is
deeply involved in the front line of business working hard together with all the employees. Always upholding the spirit of
marathon-like perseverance the Company has been forging ahead with breakthroughs as well as pursuing better financial
results and faster growth while maintaining sound operation. Over the years the Company has demonstrated keen market
insight seizing emerging opportunities in the industry through a robust team of skilled professionals and scientific management
mechanisms. Anticipating the "shift from web games to mobile games" in its early stages the Company spearheaded overseas
market penetration over a decade ago. Presently we remain aligned with the trend towards mini-games. Navigating numerous
industry transitions we have achieved sustained growth. Throughout the development the Company has consistently
emphasized talent cultivation and team building. The Company has built a high-caliber talent pool. Through a scientific talent
promotion mechanism remuneration management system and performance incentive scheme the Company inspires employee
motivation and creativity. With "bringing joy to the world" as its mission the Company is advancing towards the vision of
"becoming an excellent and sustainable entertainment provider".
2. Strengths in the integration of R&D and operation have been consolidated enriching the product
portfolio
The Company has continuously advanced its strategy of "integration of R&D and operation" deepened its diversified
product portfolio and established a robust and efficient multidimensional product supply system. First the Company has
consistently pushed back the boundaries of its self-development capabilities delved into core product categories and adopted a
global perspective to create a central supply layer with self-developed products at the core. Second through investment
empowerment and business support the Company has fostered deeper partnerships with numerous high-quality developers
both domestically and internationally continuously accumulating deeply customized premium products. Third by collaborating
with long-term and stable developers the Company has further refined its product offerings. Under this supply system the
Company has built a robust product supply chain continuously enriched the portfolio of high-quality products and drove steady
business growth.With the “integration of R&D and operation” model the Company can fully combine its strengths in product R&D and
operation. This on the one hand facilitates a deeper understanding of the market and user demands by the R&D team thereby
increasing the success rate of products under development. On the other through close collaboration between R&D and
operations teams the Company can optimize the updates and promotions of already launched products thus effectively
achieving long-term operation and prolonging product life cycles.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
193. Publishing capabilities have been continuously iterated to facilitate long-term operation from a
global perspective
In response to the ever-evolving global gaming market the Company adheres to a strategy of “tailored games” for overseas
users with diverse cultural backgrounds gaming preferences and payment habits. Tailored promotion and operation strategies
are adopted for different countries regions and game types. The Company focuses on publishing different genres of games in
different regions and localizes game content and promotional materials to reflect the cultural characteristics of each region.Over the years the Company's publishing team has successfully launched numerous quality games across diverse genres and
themes in global markets. During this journey we have kept abreast of the latest market trends and accordingly innovated our
marketing strategies. By employing various creative marketing strategies such as collaboration with renowned IP celebrity
endorsements and immersive storytelling we have established a long-term ecosystem revolving around user interactions thus
fortifying robust publishing barriers and facilitating the long-term operation of multiple products.
4. Technology-driven innovation and breakthroughs to embrace industry transformation
As one of the earliest gaming enterprises in China to systematically adopt AI the Company prioritizes innovation and fosters
an open and inclusive environment for knowledge exchange. By deeply integrating big data and AI technologies into its business
operations the Company has empowered all aspects of the value chain—from product development and content production to
publishing operation and asset accumulation. Over the years it has accumulated vast amounts of data and technological
advantages continuously iterating and optimizing its full-cycle digital intelligent products upgrading its game industrialization
pipeline and enhancing R&D and operational efficiency. In addition through strategic investment in technology the Company is
gradually establishing a presence across the industry chain spanning computing infrastructure large language model algorithms
and AI applications. This enables resource sharing and the leveraging of complementary strengths allowing the Company to stay
at the forefront of technological advancement and build a win-win ecosystem.IV Analysis of Principal Operations
1. Overview
See “II Principal Operations of the Company in the Reporting Period” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20242023
As % of operating As % of operating Change (%)
Amount Amount
revenue (%) revenue (%)
Total operating
17440957495.58100%16546871737.85100%5.40%
revenue
By operating division
Online games 17292612326.74 99.15% 16395640117.42 99.09% 5.47%
Others 148345168.84 0.85% 151231620.43 0.91% -1.91%
By product category
Mobile games 16882137496.98 96.80% 15898475091.13 96.09% 6.19%
Browser games 410474829.76 2.35% 497165026.29 3.00% -17.44%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
20Others 148345168.84 0.85% 151231620.43 0.91% -1.91%
By operating segment
Domestic 11719192858.18 67.19% 10739497361.46 64.90% 9.12%
Overseas 5721764637.40 32.81% 5807374376.39 35.10% -1.47%
By marketing model
Independent
15602811026.9889.46%14691612109.3888.79%6.20%
operation
Joint operation
1838146468.6010.54%1855259628.4711.21%-0.92%
and others
Unit: RMB
20242023
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
47501414481828410739641015913764728399584542823894503908
Operating revenue
063.60025.84586.92819.22286.75600.54285.62564.94
Net profit
attributable to the 61615175 64848182 63283310 77555464 77456328 45149804 96624252 46626633
Listed Company’s 6.28 2.67 2.61 5.74 6.72 8.35 5.44 2.93
shareholders
Reasons for business seasonality (or periodicity) and risk of fluctuations:
There is no significant seasonality or periodicity in the operations of the Company.
(2) Operating Division Product Category Operating Segment and Marketing Model Contributing over 10%
of Operating Revenue or Operating Profit
□ Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change YoY change in
Operating revenue Cost of sales profit operating in cost of gross profit
margin revenue (%) sales (%) margin (%)
By operating division
Online games 17292612326.74 3614006305.99 79.10% 5.47% 7.22% -0.34%
By product category
Mobile games 16882137496.98 3382546583.63 79.96% 6.19% 4.99% 0.22%
Browser games 410474829.76 231459722.36 43.61% -17.44% 55.31% -26.41%
By operating segment
Domestic 11719192858.18 2269641380.99 80.63% 9.12% 26.86% -2.71%
Overseas 5721764637.40 1456907403.99 74.54% -1.47% -9.08% 2.13%
Core business data restated according to the changed methods of measurement that occurred in the Reporting Period:
□Applicable □ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes □ No
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□Applicable □ Not applicable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
21(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
20242023
Operating
Items As % of cost As % of cost Change (%) division Amount Amount
of sales of sales
Royalties 3262957661.43 87.56% 3046472983.28 89.82% 7.11%
Cost of servers 246798060.99 6.62% 209070747.64 6.16% 18.05%
Amortization of
Online games
copyright 101158538.33 2.71% 106404582.53 3.14% -4.93%
money
Other costs 3092045.24 0.08% 8782892.65 0.26% -64.79%
Agency
79762710.532.14%0.000.00%100.00%
Other promotion cost
Other costs 32779768.46 0.89% 20849373.22 0.62% 57.22%
Total 3726548784.98 100.00% 3391580579.32 100.00% 9.88%
Note:
Other costs are mainly agency promotion costs labor costs and technical service charges.Breakdown of the cost of sales for the principal operations:
Unit: RMB
20242023
Breakdown of cost As % of cost of As % of cost of Change (%)
Amount Amount
sales sales
Royalties 3263056877.78 87.56% 3046472983.28 89.82% 7.11%
Cost of servers 248810685.72 6.68% 210656293.98 6.21% 18.11%
Amortization of
101196386.862.72%106404582.533.14%-4.89%
copyright money
Other costs 113484834.62 3.04% 28046719.53 0.83% 304.63%
Total 3726548784.98 100.00% 3391580579.32 100.00% 9.88%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□ Yes □ No
For details see Note IX Changes in the Scope of Consolidated Financial Statements in Part X.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□Applicable □ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 6618695108.72
Total sales to top five customers as a % of total sales of the
37.96%
Reporting Period (%)
Total sales to related parties among top five customers as a %
0.00%
of total sales of the Reporting Period (%)
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
22Top five customers:
Sales revenue contributed for As a % of total sales
No. Customer
the Reporting Period (RMB) revenue (%)
1 Customer A 2120173575.97 12.16%
2 Customer B 2025786909.08 11.62%
3 Customer C 1890574419.09 10.84%
4 Customer D 405012846.96 2.32%
5 Customer E 177147357.62 1.02%
Total -- 6618695108.72 37.96%
Other information about major customers:
□ Applicable □ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 2728447203.72
Total purchases from top five suppliers as a % of total
73.22%
purchases of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as a % of total purchases of the Reporting Period (%)
Top five suppliers:
Purchase in the Reporting
No. Supplier As a % of total purchases (%)
Period (RMB)
1 Supplier A 1189572972.25 31.92%
2 Supplier B 1055017515.70 28.31%
3 Supplier C 187868069.17 5.04%
4 Supplier D 170890993.23 4.59%
5 Supplier E 125097653.37 3.36%
Total -- 2728447203.72 73.22%
Other information about major suppliers:
□ Applicable □ Not applicable
3. Expenses
Unit: RMB
2024 2023 Change (%) Main reason for change
Distribution and
9712300686.999090808791.226.84%
selling expenses
As the Company’s operating results failed to meet the
General and appraisal indicators in the third appraisal period of
administrative 515515048.85 592119581.61 -12.94% the Fourth Employee Stock Ownership Plan during
expenses the Reporting Period the share-based payments
recognized for 2022 and 2023 were reversed in full.Due to the decreased deposits and interest rate
Financial
-161323359.39 -221476247.52 27.16% interest income from deposits decreased during the
expenses
Reporting Period compared with last year.As the Company’s operating results failed to meet the
Research and appraisal indicators in the third appraisal period of
development 646356784.55 713563181.73 -9.42% the Fourth Employee Stock Ownership Plan during
expenses the Reporting Period the share-based payments
recognized for 2022 and 2023 were reversed in full.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
234. R&D Investments
□ Applicable □ Not applicable
Expected impact on
Major R&D project Purpose Progress Specific objectives
the Company
The Soul Land: Lie Hun To become a high-quality MMO
Shi Jie (斗罗大陆：猎魂 game of a Chinese comic oriental
世界) fantasy style
To become a benchmark game
Lost Archive: Prologue
with Western magic realism and
(失落之门：序章)
next-generation quality To further enhance the
To become a high-quality MMO R&D capacity
Code MLK (代号 MLK) To enrich the
game of a Japanese Chibi style strengthen the
product matrix and Under
To become a high-quality SLG capability to develop
Code Zheng Qi SLG (代号 improve product development
game of a realistic Three quality games and
正奇 SLG) competitiveness
Kingdoms style enrich the diversified
To become a high-quality casual product portfolio
Code M1 (代号 M1)
game of a western cartoon style
To become a high-quality RPG
Code MR (代号 MR)
game of a Chibi survival theme
To become a high-quality RPG
Code DLXD (代号 DLXD)
game of a Chibi fantasy style
Details about R&D personnel:
2024 2023 Change (%)
Number of R&D personnel 1318 1471 -10.40%
R&D personnel as % of total
40.57%42.67%-2.10%
employees
Educational background of R&D personnel
Bachelor’s degree 1000 1108 -9.75%
Master’s degree 83 71 16.90%
Junior college and below 235 292 -19.52%
Age structure of R&D personnel
Below 30 658 831 -20.82%
30-406416252.56%
Over 40 19 15 26.67%
Details about R&D investments:
2024 2023 Change (%)
R&D investments (RMB) 646356784.55 713563181.73 -9.42%
R&D investments as % of
3.71%4.31%-0.60%
operating revenue
Capitalized R&D investments
0.000.000.00%
(RMB)
Capitalized R&D investments
as % of total R&D 0.00% 0.00% 0.00%
investments
Reasons for any significant change in the composition of R&D personnel and the impact:
□ Applicable □ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
24□ Applicable □ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable □ Not applicable
5. Cash Flows
Unit: RMB
Items 2024 2023 Change (%)
Sub-total of cash inflows from
18271611622.6817171716871.556.41%
operating activities
Sub-total of cash outflows
15273628939.9514024679535.098.91%
used in operating activities
Net cash flows from
2997982682.733147037336.46-4.74%
operating activities
Sub-total of cash inflows from
17042752562.4813847650873.3823.07%
investing activities
Sub-total of cash outflows
20450949186.6015293575099.8033.72%
used in investing activities
Net cash flows from investing
-3408196624.12-1445924226.42-135.71%
activities
Sub-total of cash inflows from
5230305900.003267000000.0060.10%
financing activities
Sub-total of cash outflows
6022978802.145553398865.798.46%
used in financing activities
Net cash flows from financing
-792672902.14-2286398865.7965.33%
activities
Net increase in cash and cash
-1199975466.22-574990372.12-108.69%
equivalents
Explanation of why any of the data above varies significantly on a year-over-year basis:
□ Applicable □ Not applicable
1. Net cash flows from investing activities decreased 135.71% YoY primarily driven by the increased net cash outflows used in
the purchase and recovery of financial management products and term deposits during the Reporting Period.
2. Net cash flows from financing activities increased 65.33% YoY primarily driven by the decreased cash outflows of financial
management products and term deposits used as pledges for bank loans during the Reporting Period.Explanation of why the net cash flows from operating activities varied significantly from the net profit of the Reporting Period:
□ Applicable □ Not applicable
The net cash flows from operating activities varied from the net profit of the Reporting Period primarily because items of asset
impairment allowances asset depreciation and amortization deferred income tax expense gain on changes in fair value
investment income etc. did not affect cash flows from operating activities but did affect net profit and there were movements in
trade receivables and payables. For further information see “57. Supplementary information for the cash flow statement” in Note
VII of Part X.V Analysis of Non-principal Operations
□ Applicable □ Not applicable
Unit: RMB
Amount As % of profit before Reason/source Recurrent or not
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
25income tax expenses
Mainly due to dividends
during the period of holding
equity investments gains on
Investment income 111101221.06 3.60% investments from disposal of No
equity investments and
financial management
products
Mainly due to changes in fair
Gain/loss on changes value of equity investments
-31087890.91 -1.01% No
in fair value and financial management
products
Impairment losses on
long-term equity
Mainly due to impairment
Impairment loss on investments are not
-35464905.71 -1.15% losses on long-term equity
assets recurrent while
investments and credit risks
impairment losses on
credit risks are recurrent
Mainly due to compensation
Non-operating
4377488.74 0.14% income for breach of No
income
contract
Mainly due to expenditures
Non-operating
6589589.85 0.21% on donations and No
expenses
compensation
Mainly due to refund of VAT
refund of handling fee for Refund of VAT is
personal income tax and recurrent while other
Other income 88261430.73 2.86%
other government grants government grants are
that are related to normal not.business operations
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2024 1 January 2024
Change in
As % of As % of Reason for any significant change
Amount Amount percentage (%)
total assets total assets
Mainly due to the increased net
cash outflows used in investing
activities such as the purchase and
Monetary recovery of financial management
5058893098.7625.83%6176992875.5532.28%-6.45%
funds products and term deposits as
well as external equity
investments during the Reporting
Period
Accounts
1212667677.20 6.19% 1479267695.67 7.73% -1.54% No significant change
receivable
This is mainly because the
Company’s global headquarters
Investment
689233033.12 3.52% 0.00% 3.52% was completed and put into use
properties
during the Reporting Period. To
reactivating existing assets and
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
26improve operating efficiency the
purpose of the old office building
has been changed to rental or
sale.Long-term
equity 446322435.18 2.28% 520735613.55 2.72% -0.44% No significant change
investments
No significant change occurred to
this item as a percentage of total
assets while the ending balance
was higher than the beginning
balance mainly because during the
Reporting Period the Company’s
global headquarters was
completed and transferred to
Fixed assets 1076644793.81 5.50% 823508284.60 4.30% 1.20%
fixed assets; and based on an
operating decision to optimize the
asset structure the office space
for self-use formerly reported
under fixed assets was re-
purposed to rental or sale which
was reclassified to investment
properties.Mainly because the Company’s
global headquarters was
Construction
534491192.20 2.79% -2.79% completed and transferred to
in progress
fixed assets during the Reporting
Period
No significant change occurred to
this item as a percentage of total
assets while the ending balance
Right-of-use
6566577.29 0.03% 16622471.20 0.09% -0.06% was lower than the beginning
assets
balance mainly due to the
depreciation provisions during the
Reporting Period.Mainly due to the increased note
Short-term
2653781111.11 13.55% 1554577083.34 8.12% 5.43% financings and bank loans during
loans
the Reporting Period
Contract
244227089.06 1.25% 280023602.87 1.46% -0.21% No significant change
liabilities
Mainly due to the repayment for
Long-term
0.00% 306000000.00 1.60% -1.60% bank loans during the Reporting
loans
Period
No significant change occurred to
this item as a percentage of total
assets while the ending balance
Lease was lower than the beginning
1528614.880.01%3944589.050.02%-0.01%
liabilities balance mainly due to the
decreased lease payables as a
result of rental payments made
during the Reporting Period.Trading
financial 2249440497.59 11.49% 2024681502.03 10.58% 0.91% No significant change
assets
Mainly due to the increased
Prepayments 729588626.88 3.73% 1143237497.90 5.97% -2.24% prepayments for Internet traffic
charges as a result of the launch of
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
27new games such as Ling Hun Xu
Zhang (灵魂序章) at the end of
last year
No significant change occurred to
this item as a percentage of total
Other non-
assets while the ending balance
current
1037418816.34 5.30% 825660687.40 4.32% 0.98% was higher than the beginning
financial
balance mainly due to the
assets
additional equity investments
during the Reporting Period.Mainly due to the land lot
purchased by the Company last
Intangible year being recognized as land use
1888794105.859.65%1040204870.965.44%4.21%
assets rights in the current year for
reason of the receipt of the
immovable property certificate
Goodwill 1578065048.53 8.06% 1578065048.53 8.25% -0.19% No significant change
No significant change occurred to
this item as a percentage of total
assets. The ending balance mainly
included term deposits due in
over one year and certificates of
deposit. The beginning balance
included RMB1353 million of
Other non-
term deposits due in over one
current 2195871744.13 11.21% 2280577680.43 11.92% -0.71%
year and certificates of deposit as
assets
well as RMB927 million of the
newly acquired land with pending
immovable property certificate.The said land was recognized as
land use rights in the current year
for reason of the receipt of the
immovable property certificate
Accounts
1667812211.58 8.52% 1825714480.74 9.54% -1.02% No significant change
payable
Notes
1044500000.00 5.33% 1087000000.00 5.68% -0.35% No significant change
payable
Indicate whether overseas assets account for a higher percentage of total assets.□ Applicable □ Not applicable
Material
Managem Control measures Return As % of the
Asset value impairm
Asset Source Location ent to protect asset generated Company’s
(RMB) ent risk
model safety (RMB) equity
or not
A sound business
supervision
Other Investments Hong Kong
mechanism and a
equity in overseas 515200548.20 in China -10070868.15 3.99% No
sound risk control
assets companies etc.mechanism have
been put in place
A sound business
Income from Hong Kong supervision
Monetary investments in China mechanism and a
2150880265.15 16.65% No
funds and Singapore sound risk control
operations etc. mechanism have
been put in place
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
282. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Gain/loss
Impairmen
on fair- Cumulative
t allowance Purchased
value fair-value Sold in the
Beginning made in in the Other Ending
Item changes in changes Reporting
amount the Reporting changes amount
the through Period
Reporting Period
Reporting equity
Period
Period
Financial assets
1. Trading financial
assets (exclusive of 2024681 3282893. 10712508 10493279 2247064. 2249440
derivative financial 502.03 87 425.27 388.08 50 497.59
assets)
-
4. Other equity 24713279 21702297
24696408100122.00637150.34
investments 4.34 2.20
6.23
-
5. Other non-current 82566068 31892825 84713010 2948667. 1037418
25405784
financial assets 7.40 6.00 .14 98 816.34.90
--
Subtotal of financial 3097474 11031436 10578092 5832882. 3503882
2212289124696408
assets 983.77 681.27 520.22 82 286.13.036.23
--
309747411031436105780925832882.3503882
Total of the above 22122891 24696408
983.77681.27520.2282286.13.036.23
-
8743696.
Financial liabilities 74311.41 8964999. 295426.44 -188.25
60
88
Contents of other changes:
Other changes were incurred by exchange rate fluctuations etc.Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes □ No
3. Restricted Asset Rights as at the End of the Reporting Period
Item Ending carrying amount (RMB) Reason for restriction
Monetary funds 6500461.77 Money frozen by bank and security deposits
1628364378.79 Principals and interest of term deposits with a Monetary funds
maturity within one year as pledges
448100530.82 Principals and interest of term deposits with a
Non-current assets due within one year maturity of over one year (due in 2025) as
pledges
821776423.21 Principals and interest of term deposits with a
Other non-current assets
maturity of over one year as pledges
Total 2904741794.59
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
29VII Principal Subsidiaries and Joint Stock Companies
□ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationshi
Registered Operating Operating
Name p with the Principal activity Total assets Net assets Net profit
capital revenue profit
Company
Anhui 37 Jiyu Development of
6250000.2221288161404017875319455075690058070
Network Technology Subsidiary mobile and
00425.64919.17959.384.428.46
Co. Ltd. browser games
37 Interactive
Publishing and
Entertainment 10000000 15059015 5759186 17459877 2194542 1794314
Subsidiary operation of
(Shanghai) .00 916.16 776.87 459.34 937.08 761.98
mobile games
Technology Co. Ltd.Subsidiaries obtained or disposed of in the Reporting Period:
□ Applicable □ Not applicable
Effects on the overall operations and
Name of subsidiary How it was obtained or disposed of
performance
Guangzhou Ban Tang Jia Bing Network No material effects on the overall operations
Transfer
Co. Ltd. and performance of the Company
Shanghai Tingxiong Network Technology In line with the Company’s strategic planning
Acquisition in cash
Co. Ltd. and helpful for its business development
Guangdong Qianxing Zhiqing Venture In line with the Company’s strategic planning
Entering into partnership
Capital Partnership (L.P.) and helpful for its business development
Other information on principal subsidiaries and joint stock companies:
N/A
VIII Prospects
(I) Industry landscape and trends
After years of development the current game industry is in a period of historical change from high-speed growth to high-
quality development.On the one hand China's innovation capacity of developing original game products is generally enhanced. Types of game
products will be expanded towards multiple directions high-quality works focus on long-term development and the game industry
is embracing more and more quality products. Concurrently breakthroughs in key technologies such as AI have presented the
industry with fresh opportunities not only leading to breakthroughs in game technologies but also offering new ways to
demonstrate the fulfilment of social benefits and corporate responsibilities through "Games+" cross-sector empowerment.On the other hand the pace of China's game industry going overseas has accelerated and game enterprises continue to take
the global publishing strategy opening up diversified development paths with refined operation and localized marketing. The
number of countries and regions playing China's games has soared and the international competitiveness has been strengthened
day by day. Games going overseas has become an important way to boost the "going global" of Chinese culture and the
international influence of Chinese culture and Chinese elements has been continuously improved. In this sense the game industry
is making remarkable contributions to the inheritance and promotion of the traditional Chinese culture and the telling of China's
stories to the rest of the world.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
30(II) Development strategy and business plan of the Company
Based on the current industry pattern and development trend the Company will continue to steadily take the development
strategy of "boutiqueization diversification and globalization" continuously improve the operation quality and practice the
socialist core values. With "bringing joy to the world" as its mission the Company is dedicated to becoming an excellent and
sustainable entertainment enterprise which will continue to provide high-quality and healthy entertainment products for the
public.
1. Effectively enhance self-development capacity and expand the diversified product matrix
In the future the Company will continue to scale up R&D pay attention to the cultivation of R&D talents deepen the coreadvantages of "boutiqueization" and give full play to the strategic advantages of "integration of R&D and operation”. With an
inheritable and iterative R&D system it will build a pipeline for the development of next-generation games empower product
development with innovative technologies and enhance industrialization of research findings. Also it will break through the ceiling
of self-research ability and carry out diversified layout on the product supply side through rich self-research and external R&D
reserves to bring more high-quality games to players.
2. Expand the advantages of overseas business and help spread Chinese culture
Since 2012 the Company has begun to lay emphasis on overseas markets. With the accumulation of many years of experience
of overseas business the Company has achieved remarkable results in the globalization of its business. In the future the Company
will strengthen its pace of "Going Global" give further play to the first mover advantage in the overseas market accelerate
overseas business development and continuously integrate Chinese excellent traditional culture in game themes content
gameplay and promotion materials. Deeply integrating high-quality games with Chinese traditional culture the Company will
continue to arouse foreign players' interest in experiencing and exploring Chinese culture from the game and launch more
excellent works with Chinese characteristics reflecting Chinese spirit and containing Chinese wisdom.
3. Continuously ignite talent vitality to erect a strong talent fortress
Talent stands as the core driver of enterprise progress. The Company is committed to igniting talent vitality and identifying
organizational prospects establishing a unique talent development paradigm and consistently building the Company's talent
fortress. Through multidimensional measures such as safeguarding employee rights ensuring comprehensive welfare and
healthcare benefits fostering diversity equality and inclusivity and incentivizing employee growth the Company has supported
the retention and sustainable development of innovative talent. Introducing diverse initiatives including core sequence and pivotal
role recognition capability enhancement promotion incentives and talent development challenge initiatives the Company has
actively propelled the transition of the talent structure's focus towards individuals in core roles or exhibiting great potential
offering talent wider ways to growth and diverse organizational opportunities. This ongoing endeavor is aimed at propelling the
trend towards young talent and elites and establishing a healthy and reasonable talent pool. In the future the Company will
continually optimize its talent cultivation system and development model to adeptly navigate market challenges and facilitate
business growth thus driving the growth of both the Company and its employees.
4. Focus on the leading business forms in the industry and strengthen AI application
The Company will remain dedicated to its dual identity as both a technology-driven Internet enterprise and a social
entertainment service provider. Grounded in an ecosystem of high-quality content the Company will strive to enhance the national
fundamental innovation capabilities and accumulate cutting-edge technologies. The ultimate goal is to support talent development
using innovation and utilize technology for the betterment of society.The Company has continuously refined the layout of entertainment technology ecosystem and actively embraced industrial
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
31transformations brought about by the rapid advancement of technologies such as AI. Through independent incubation and external
investments the Company has explored the in-depth integration of AIGC technology with business and seized opportunities
presented by technological innovation. In combination with its business requirements the Company has consistently iterated and
optimized its self-developed digitalized and intelligent products and developed AI tools tailored to its game business procedures
thereby covering more business scenarios and achieving higher efficiency and better quality. Furthermore we have relentlessly
explored AI's potential for optimizing game content and user experiences. In the future the Company will continue to conduct
external exploration and internal breakthrough based on the existing principal business core R&D capability and industrial
ecological layout focusing on the integration of emerging technologies and industries and will capitalize on opportunities arising
from industrial transformation.
5. Earnestly shoulder its own responsibilities and achieve long-term healthy and sustainable development
The Company always adheres to the unity of economic and social benefits. The Company abides by the bottom line of
compliance establishes an all-round content audit mechanism actively responds to and strictly implements the relevant policies
requirements and rules and regulations of the industry and continuously takes actions in the direction of juvenile protection
information security user personal privacy protection ecological governance of network information content cultural inheritance
and dissemination. At the same time the Company continues to increase investment in scientific and technological innovation
rural revitalization rural assistance industry-university-research training functional game development employee development
plan and other directions so as to firmly shoulder its social responsibilities. Going forward the Company will continue to stick to its
content baseline further give play to its advantages serve society with its professional ability practice corporate social
responsibilities and share the development achievements with society to the greatest extent.(III) Possible Risks and Countermeasures
1. Changes in industry policies risks of violation and countermeasures
In recent years the authority in charge has attached great importance to the development of game industry made a series of
major decisions and arrangements and issued a series of policies and regulations to guide the industry to develop in a standardized
and healthy way. For example clear new standards and requirements have been put forward for protection of minors and anti-
addiction of online games. Further strict management measures have been taken to promote standardized management of game
industry. At the same time information security and protection of users' privacy have drawn much attention from the society. In
the long term the regulation of the online game industry is becoming more and more standardized which is conducive to the
healthy development of the industry. The enterprises with standardized operation will benefit from it. However in the future if the
Company fails to make corresponding adjustments timely in accordance with changes in industry policies or has a deviation in
understanding management regulations in its operation there may be a risk that the Company will be punished by relevant
departments or the works will not go online as planned which will have a significant negative impact on the Company's business
development and brand image. In this regard the Company will strictly abide by various industry policies rules and regulations
actively implement relevant requirements for industry development establish an internal sound quality management and control
mechanism strengthen industry policy risk management capability and fully reduce and avoid the business risks caused by changes
in industry policies.
2. Market competition risks and countermeasures
The online game industry is facing increasingly fierce competition as it gradually matures. At the same time online game users
are maturing with higher quality demand for game products. The industry is characteristic of fast product transition limited
product life cycle and volatile player preferences among others. Intense market competition will challenge the Company’s
development in terms of products and market channels.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
32In response the Company will continue to implement the strategy of "boutiqueization diversification and globalization". On
the one hand it will strengthen its core competitiveness of its own business pay continuous attention to self-research investment
carry out R&D and innovation in product creativity gameplay theme art and technology and keep up with industry technology
development trend; at the same time it will maintain close cooperation with excellent developers to guarantee the supply of
quality products and continue to expand game categories through independently-developed and agency games to deepen the
competitive edge of "integration of R&D and operation". Meanwhile the Company will speed up the pace of exporting give full
play to the edges of it in overseas markets face diversified operations of overseas markets deepen the cultivation of key markets
and broaden the categories of games and increase market share. In addition the Company will dig deeper into operational data
and timely adjust operational and R&D strategies to meet the core demands of users further play the role of new ideas of digital
marketing operation deepen the business strategy of multi-channel marketing and long-term service and continuously enhance
core competitiveness in the market.Facing the current industrial competition pattern the top-performing enterprise has obvious edges in technology R&D ability
channel operation ability product promotion ability user scale and market share. The Company will continue to consolidate and
cement its competitive edges actively respond to changes in the industry reduce market competition risks and seize market
opportunities.
3. Risks of core personnel turnover and countermeasures
A stable and high-quality talent team is an important guarantee for the Company to maintain its core competitive advantage.If the Company fails to effectively build a core talent team give reasonable incentives and manages the core personnel the
employees’ enthusiasm and creativity will be affected which will have an adverse impact on the Company’s core competitiveness.In response much attention has been attached to cultivation and acquisition of professional talents. The Company creatively
builds a platform-based talent management mechanism according to which excellent game producers are rewarded with project
bonus and given discretion of research and project concept creation. In order to attract and retain outstanding management
talents and business elites the Company has reformed the project mechanism shortened the review cycle and established
diversified objectives so as to stimulate the innovative vitality of employees. In terms of employee performance management the
Company has set up diversified KPIs based on employees' contribution and ability as well as reasonable team objectives and
innovative incentive activities to encourage employees’ creativity so as to increase the attractiveness to core staffs and R&D
personnel.In addition the Company cares about the long-term development of employees. The Company has established “37 InteractiveEntertainment Learning and Development Center” to provide sufficient training and learning opportunities for employees and help
them grow rapidly. The Company actively carried out training for newcomers and professional abilities such as "Marathon
Leadership Training Camp" "Huangpu New Army" "X+ Plan" and "37TALK" promoted talent upgrading to meet the needs of
business upgrading paid attention to internal sharing established a team of internal professional lecturers among employees
spread culture of sharing built a talent echelon and upgraded talent development system.Centering on the cultural concept of "health happiness and sustainability" the Company upgraded colorful welfare system
strengthened humanistic care and promoted retention of talents. The colorful welfare system encompasses interest-free loan love
fund commercial insurance and employee health management. During the Reporting Period the Company also launched the
“Newborn Initiative” under which a childbirth fund of RMB20000 per child will be granted to officially employed staff with a
service tenure of two years or more further enhancing talent care and incentive measures. In addition seasonal activities onholidays annual physical examination singles' fellowship "Family Day" "Boss Face-to-Face" "37 Battle Talk" "Carnival" “Healthy
37ers” and other thematic activities were regularly held. Inter-departments' team building promoted the connection between
employees and their friends relatives and colleagues. In addition the Company has established recreational clubs for employees
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
33covering “Super Runners” e-sports table games dancing badminton footfall and yoga created cultural atmosphere that meets
the characteristics of the younger generation strengthened employees' sense of belonging balanced employees' work and life and
took care of employees' physical and mental health in various forms.
4. Technology iteration and innovation risk and countermeasures
The game industry has seen rapid technology iteration and faster changes in cutting-edge technologies and demand for new
types of products has emerged among young users. Against this backdrop if a game company fails to grasp the industry
development trend in a forward-looking manner and promptly innovate its technology and products its R&D and application of key
technologies will be outdated resulting in the risk of products falling behind the market.In response the Company continued to focus on changes in the industry's cutting-edge technologies. First it closely followed
industry changes and probed into cutting-edge technologies through investment layout to maintain sensitive to leading
technologies. Second it intensified the incubation of internal technologies valued investment in self-developed games improved
self-development system established an effective R&D system framework and introduced diversified incentives to encourage
employees to explore new technologies. By taking these actions the Company has reserved technologies and products for the
industry development trend.
5. Risk associated with being investigated by the China Securities Regulatory Commission with no clear conclusion yet
On 27 June 2023 the Company Mr. Li Weiwei (the actual controller and Chairman of the Board of the Company) and Mr.Zeng Kaitian (the Vice Chairman of the Board of the Company) received the "Notification of the China Securities Regulatory
Commission on Case Filing" (CSRC Case No. 03720230061 No. 03720230062 No. 03720230063) from the said commission
(hereinafter referred to as the "CSRC") respectively. For suspected information disclosure violations according to the Securities Law
of the People's Republic of China the Law of the People's Republic of China on Administrative Penalties and other applicable laws
and regulations the CSRC decided to file a case against the Company Li Weiwei and Zeng Kaitian.During the period of investigation the Company will actively cooperate with the CSRC’s investigation and fulfil its information
disclosure obligations in strict accordance with applicable laws regulations and regulatory requirements.IX Communications with the Investment Community such as Researches Inquiries and
Interviews during the Reporting Period
□ Applicable □ Not applicable
Main discussions
Type of the Index to the
Way of and materials
Date Place communicati Communication party relevant
communication provided by the
on party information
Company
Investors at the Log Sheet of
Online
Company’s 2023 Annual About the Investor
Online communication
7 May 2024 Other Report Online Company’s Relations
meeting via an Internet
Roadshow through the fundamentals Activities (No.platform
Quanjing platform 2024-001)
Log Sheet of
About the
Investor
operations and
19 June 2024 Hong Kong Other Institution Institutional investors Relations
outlook of the
Activities (No.Company
2024-002)
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
34X Development and Implementation of Market Value Management System and Valuation
Enhancement Plan
Indicate whether the Company has developed a market value management system.□ Yes □ No
The Company's market value management system is aimed to regulate the Company's market value management activities
safeguard the legitimate rights and interests of the Company and investors enhance the Company's investment value and
increase investor returns. The main contents include the goals and basic principles organs and responsibilities plans and
methods of market value management etc.Indicate whether the Company has disclosed any valuation enhancement plan.□ Yes □ No
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
35Part IV Corporate Governance
I Corporate Governance Overview
The Company has been improving its corporate governance structure in strict accordance with the Company Law the
Securities Law the Stock Listing Rules of the Shenzhen Stock Exchange Guideline No. 1 of the Shenzhen Stock Exchange for Self-
regulation of Listed Companies—Operation Standards for Main Board Listed Companies and other applicable laws and regulations
as well as the Company’s Articles of Association. It has established a sound and strict system for functioning of the general meeting
of shareholders the Board of Directors and the Supervisory Committee. Meanwhile the Company has also put in place sound
internal management and control systems to further improve its corporate governance. During the Reporting Period in accordance
with applicable laws and regulations and the Company's actual situation the Company revised the Articles of Association Rules of
Procedure for General Meetings of Shareholders Rules of Procedure for the Board of Directors Rules for Independent Directors
and Measures for the Administration of Raised Funds as well as formulated the Special Meeting System for Independent Directors
Rules for the Appointment of Accounting Firm Work Rules for the Audit Committee Work Rules for the Strategy Committee Work
Rules for the Nomination Committee and Work Rules for the Remuneration and Appraisal Committee to further promote
compliance in the Company's operation safeguard the legitimate rights and interests of the Company and its shareholders
establish and improve internal management mechanisms and promote the healthy and sustainable development of the Company.In the Reporting Period the Company carried out operations and discloses information in compliance with standards the decision-
making procedures for operation and management were compliant and effective and its actual situation of corporate governance
met the relevant requirements of the normative documents on the governance of listed companies issued by the China Securities
Regulatory Commission.(I) Shareholders and general meeting of shareholders
The Company convenes and holds general meetings of shareholders in strict accordance with the Company Law the Securities
Law the Rules Governing the Listing of Shares on Shenzhen Stock Exchange the Company’s Articles of Association the Rules of
Procedure for General Meetings of Shareholders and other relevant laws and regulations and engages lawyers to attend as
witnesses to ensure that all shareholders especially minority shareholders enjoy equal status and fully exercise their rights.(II) The controlling shareholder and the Company
The Company has an independent business system and is able to operate on its own. The Company and its controlling
shareholder are independent of each other in terms of business personnel assets organization and finance. The Board of
Directors the Supervisory Committee and the internal management bodies of the Company operate independently according to
the rules of procedure and the Company's systems. The controlling shareholder of the Company strictly regulates his behaviors
and through the general meetings of shareholders exercises his rights as an investor. He has not directly or indirectly intervened
the Company's decisions or operating activities without holding a general meeting of shareholders. The controlling shareholder
does not have any occupation of the Company's funds nor does Company provides any guarantee for the controlling shareholder
or any of his related parties.(III) Directors and the Board of Directors
The Company elects directors in strict accordance with the applicable laws and regulations as well as the Company’s Articles
of Association. At the end of the Reporting Period there were nine members in the Company’s Board of Directors including four
independent directors. The number of members of and composition of the Company's Board of Directors complies with relevant
requirements of laws and regulations. All directors of the Company do their jobs earnestly according to the laws regulations
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
36Guideline No. 1 of the Shenzhen Stock Exchange for Self-regulation of Listed Companies—Operation Standards for Main Board
Listed Companies the Articles of Association the Company's Rules of Procedure for the Board of Directors the Rules for
Independent Directors etc. attend meetings of the Board of Directors and the general meeting of shareholders on time actively
participate in training study relevant laws and regulations and earnestly perform their duties as directors honestly diligently and
conscientiously. The independent directors of the Company have maintained full independence in their work actively participated
in the meetings of the Board of Directors and carefully deliberated on proposals so as to effectively safeguard the interests of the
Company and its minority shareholders. Under the Board of Directors there are four special committees i.e. the Audit Committee
the Compensation and Appraisal Committee the Nomination Committee and the Strategy Committee which play an important
role in promoting the standardized operation and sound and sustainable development of the Company.(IV) Supervisors and the Supervisory Committee
The Company elects supervisors in strict accordance with the relevant provisions of the laws regulations the Company’s
Articles of Association the Rules of Procedure for General Meetings of Shareholders the Rules of Procedure for the Supervisory
Committee etc. At the end of the Reporting Period the Supervisory Committee consisted of three supervisors including two
employee supervisors elected by the Employees' Congress of the Company. The number of members of and composition of the
Company's Supervisory Committee complies with the requirements of laws regulations and the Company’s Articles of Association.In accordance with the requirements of laws regulations the Rules of Procedure for the Supervisory Committee etc. to protect
the interests of shareholders all supervisors of the Company earnestly perform their duties supervises the financial affairs of the
Company as well as the legality and compliance of the performance of duties by directors and senior managers of the Company
and safeguards the legitimate rights and interests of the Company and its shareholders loyally and diligently.(V) Information disclosure and transparency
The Company fulfills its information disclosure obligations in strict accordance with relevant laws and regulations as well as the
Measures for the Management of Information Disclosure by Listed Companies. The Company can disclose information in a truthful
accurate complete and timely manner without false records misleading statements or material omissions. Meanwhile it has
designated China Securities Journal Shanghai Securities News Securities Times Securities Daily and www.cninfo.com.cn as the
newspapers and website for its information disclosure thus ensuring that all investors have equal access to corporate information
enhancing the transparency of the Company and effectively protecting the right to know of minority investors.(VI) Stakeholders
While maintaining its steady development and maximizing shareholders' interests the Company actively concerns itself with
the welfare undertakings for the public good and other issues of the region where it is located attaches importance to social
responsibilities fully respects and safeguards the lawful interests of employees creditors and other stakeholders and strengthens
communication and cooperation with all parties to promote its sustainable and sound development with them.(VII) The Company and investors
In accordance with the provisions of the Investor Relations Management System the Company has strengthened investor
relations management and expressly specified the Board Secretary as the person in charge of investor relations management who
organizes and implements the daily management of investor relations. During the Reporting Period the Company strengthened its
communication with investors through the online briefing on its annual report answering investors’ phone calls online interactions
on-site surveys and other means.(VIII) Internal audit system
The Company has put in place an internal audit system set up an Internal Audit Department and employed full-time auditors
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
37who audit and supervise the quality of economic operations economic benefits internal control system and implementation use
of expenses and assets of the Company and its subsidiaries under the leadership of the Audit Committee of the Board of Directors.(IX) Protection of legitimate rights and interests of shareholders
The Company protects the rights of shareholders in accordance with law attaches importance to reasonable investment
returns for shareholders and expressly prescribes the profit allocation policies in the Company's Articles of Association especially
the cash dividend policies. Thus its profit distribution policies have been continuous and stable with the long-term interests of the
Company the overall interests of all shareholders and the sustainable development of the Company taken into account.Indicate whether the actual situation of corporate governance significantly deviates from the laws administrative regulations and
regulations issued by the China Securities Regulatory Commission on listed company governance.□ Yes □ No
No such cases.II Independence of the Company from the Controlling Shareholder and Actual Controller in
Terms of Assets Personnel Finance Structure and Business
The Company and its controlling shareholder are independent of each other in terms of business personnel assets
organization and finance. It has an independent and complete business system and is able to operate on its own.
1. Independence of business
The Company is an enterprise legal person engaged in production and operation independently owns independent and
complete R&D purchasing and sales systems an independent and complete business system and the ability to operate
independently in the market. It does not reply on its shareholders or any other related party and there is no horizontal competition
between the Company and its controlling shareholder who has not directly or indirectly intervened in the operations of Company.
2. Independence of personnel
The Company's senior management including its General Manager Deputy General Manager Board Secretary and Chief
Financial Officer and its core technical personnel all work at the Company on a full-time basis and receive remunerations. They do
not hold any administrative position at or receive salary from the corporate shareholders; the directors supervisors and senior
management of the Company are all selected in strict accordance with the relevant provisions of the Company Law and the
Company's Articles of Association. The controlling shareholder has not made decisions on appointment and removal by bypassing
the general meetings of shareholders the Board of Directors and the Supervisory Committee of the Company. The employees of
the Company are independent of its corporate shareholders and related parties and the Company implements independent labor
personnel and salary management systems.
3. Independence of assets
The ownership of assets of the Company its controlling shareholder and major shareholders is clear and its controlling
shareholder and major shareholders have not illegally occupied or used the Company's funds assets or other resources. The
Company independently owns all of its land use rights real estate machinery and equipment trademarks patents proprietary
technologies and other assets and does not rely on the assets of shareholders for production and operation. The Company has full
right to control and dispose of all of its assets.
4. Independence of structure
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
38The Company has established and improved the general meetings of shareholders the Board of Directors the Supervisory
Committee the management team headed by the General Manager and some other bodies as well as the corresponding rules for
the general meetings of shareholders the Board of Directors and the Supervisory Committee and the Work Rules for the General
Manager thus creating a sound corporate governance structure; each functional department operates independently according to
the prescribed responsibilities; there is no superior-subordinate relationship between the functional departments of the Company
and its corporate shareholders or their functional departments and no corporate shareholder has intervened in the establishment
or operation of the Company's organizational structure.
5. Independence of finance
The Company has an independent financial department an independent accounting system and an independent financial
management system and independently makes financial decisions; the Company has opened bank accounts independently and
does not share bank accounts with its corporate shareholders. The Company files taxes and performs tax payment obligations
independently in accordance with the law. None of its corporate shareholders and other related parties have illegally occupied or
used the Company's monetary funds or other assets; the Company signs external contracts independently.III Horizontal Competition
□ Applicable □ Not applicable
IV Annual and Extraordinary General Meetings of Shareholders Convened during the Reporting
Period
1. General Meetings of Shareholders Convened during the Reporting Period
Investor
Date of the Date of
Meeting Type participation Resolutions of the meeting
meeting disclosure
ratio
The First Announcement on Resolutions of
Extraordinary Extraordinary the First Extraordinary General
12 January 13 January
General Meeting General Meeting 46.61% Meeting of Shareholders of 2024
20242024
of Shareholders of of Shareholders (Announcement No. 2024-003)
2024 disclosed on www.cninfo.com.cn
Announcement on Resolutions of
The 2023 Annual Annual General the 2023 Annual General
10 May
General Meeting Meeting of 46.32% 11 May 2024 Meeting of Shareholders
2024
of Shareholders Shareholders (Announcement No. 2024-041)
disclosed on www.cninfo.com.cn
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preferred Shareholders with
Resumed Voting Rights
□ Applicable □ Not applicable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
39V Directors Supervisors and Senior Management
1. General Information
Beginn Increas Decrea Other
Ending
Incum ing e in se in increas Reasons for
Start of End of shareh
Name Gender Age Office title bent/F shareh the the e/decr share
tenure tenure olding
ormer olding period period ease changes
(share)
(share) (share) (share) (share)
2023
Chairman of Incum 32322 32322
Li Weiwei Male 47 January March
the Board bent 8319 8319
20152025
Vice 23 Voluntary
Zeng Incum 5 July 24534 1129 24647
Male 49 Chairman of March increase in
Kaitian bent 2019 4374 700 4074
the Board 2025 shareholding
Vice 16 23
Hu Incum 20159 20159
Male 48 Chairman of Septemb March
Yuhang bent 7684 7684
the Board er 2020 2025
23 Voluntary
General Incum 23 May 36453 2543 38996
Xu Zhigao Male 46 March increase in
Manger bent 2023 903 071 974
2025 shareholding
Director and
2023
Deputy Incum 2100 2100
Yang Jun Male 45 January March
General bent 000 000
20152025
Manager
Director and
2423
Deputy Incum 5296 5296
Liu Jun Male 44 March March
General bent 801 801
20222025
Manager
2423
Independent Incum
Li Yang Male 56 Decemb March
Director bent
er 2019 2025
2423
Independent Incum
Ye Xin Male 49 Decemb March
Director bent
er 2019 2025
2423
Independent Incum
Lu Rui Male 49 March March
Director bent
20222025
2423
Independent Incum
Tao Feng Male 44 March March
Director bent
20222025
Chairman of
2723
the Incum
He Yang Male 43 Decemb March
Supervisory bent
er 2018 2025
Committee
2723
Incum
Cheng Lin Female 42 Supervisor Novemb March
bent
er 2015 2025
2023
Liu Incum
Female 47 Supervisor January March
Fengyong bent
20152025
Deputy 21 23
Zhu Incum
Male 42 General January March
Huaimin bent
Manager 2019 2025
Chief Incum 12 23
Ye Wei Male 41
Financial bent October March
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
40Officer and 2016 2025
Board
Secretary
81402367281769
Total -- -- -- -- -- -- 0 0 --
10817713852
Note: The term of office of the Company's sixth Board of Directors and Supervisory Committee expired on 23 March 2025. In
view of the fact that the nomination of candidates for the new Board of Directors and Supervisory Committee is still in progress
in order to ensure the continuity and stability of the Board of Directors the Supervisory Committee the annual report and other
related work the re-election of the Board of Directors and Supervisory Committee will be duly postponed and the term of office
of the Board of Directors' specialized committees and senior management will also be postponed accordingly. Before the
completion of the re-election the company's sixth Board of Directors and its specialized committees the sixth Supervisory
Committee and senior management will continue to perform their respective duties and obligations in accordance with laws
regulations and the provisions of the Company's Articles of Association.Indicate whether any director supervisor or senior management resigned before the expiry of their tenures during the Reporting
Period.□ Yes □ No
Changes of directors supervisors and senior management:
□ Applicable □ Not applicable
2. Biographical Information
Professional backgrounds major work experience and current posts in the Company of the incumbent directors supervisors and
senior management:
Mr. Li Weiwei was born in 1977. Mr. Li is a member of the CPC and has no right of permanent residence in a foreign country.He has received an EMBA degree from Cheung Kong Graduate School of Business and a Doctor of Business Administration
degree from Singapore Management University. From August 2000 he worked for Shenzhen Zhuanjia Network Technology Co.Ltd. then Shenzhen Quanzhi Information Technology Co. Ltd. and then Guangzhou Haiyan Network Technology Co. Ltd. From
October 2011 to 18 March 2015 he served as Executive Director and General Manager of 37 Interactive Entertainment
(Shanghai) Technology Co. Ltd. On 20 January 2015 he became Vice Chairman of the Third Board of Directors of Wuhu 37
Interactive Entertainment Network Technology Group Co. Ltd. On 24 August 2015 he was also appointed General Manager of
the Company. On 21 January 2019 he became Chairman of the Boarder of Directors and General Manager of the Company. Mr.Li is currently Chairman of the Board of 37 Interactive Entertainment Network Technology Group Co. Ltd.Mr. Zeng Kaitian Han nationality was born in 1975. Mr. Zeng is of Chinese nationality and has no right of permanent
residence in a foreign country. He received an EMBA degree from China Europe International Business School. He is a co-founder
of 37 Interactive Entertainment (Shanghai) Technology Co. Ltd. In October 2011 he became Director of 37 Interactive
Entertainment (Shanghai) Technology Co. Ltd. overseeing the overseas publishing of the company's online game business. On 5
July 2019 he became Director of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. Mr. Zeng is currently
Vice Chairman of the Board of 37 Interactive Entertainment Network Technology Group Co. Ltd.Mr. Hu Yuhang Han nationality was born in 1976. He graduated from Lanzhou University and received an EMBA degree
from Cheung Kong Graduate School of Business. He has no right of permanent residence in a foreign country. Mr. Hu became
President of 37 Interactive Entertainment in October 2013 in charge of the strategic planning and day-to-day management of 37
Games an R&D brand of 37 Interactive Entertainment. He is a seasoned expert in game R&D management and has rich
experience in game R&D and project management. On 16 September 2020 he became Director of Wuhu 37 Interactive
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
41Entertainment Network Technology Group Co. Ltd.. Mr. Hu is currently Vice Chairman of the Board of 37 Interactive
Entertainment Network Technology Group Co. Ltd.Mr. Xu Zhigao was born in 1978. Mr. Xu is a member of the CPC with a bachelor’s degree from Sun Yat-Sen University and
has no right of permanent residence in a foreign country. With more than a decade of experience in Mobile Internet Mr. Xu
Zhigao successively founded several Internet enterprises and entered the industry of mobile games in 2012; in 2014 he joined
37 Interactive Entertainment holding the post of the President of the branch company Guangzhou 37 Network Technology Co.
Ltd. and taking charge of establishing the mobile-game-publishing team of the Company and developing its mobile-game-
publishing business and now he assumes the post of the President of 37Mobile; since 23 May 2023 he has assumed the office
of the General Manager of 37 Interactive Entertainment Network Technology Group Co. Ltd.Mr. Yang Jun born in 1979 is a member of the CPC and has no right of permanent residence in a foreign country. He has
received a master's degree in corporate management and is working on a Doctor of Business Administration program at the
Cheung Kong Graduate School of Business .He is a Chinese certified public accountant. From June 2006 to April 2012 he worked
for Deloitte Touche Tohmatsu (special general partner) as the Manager of the Audit Department. From April 2012 to present he
served as CFO of 37 Interactive Entertainment (Shanghai) Technology Co. Ltd. On 20 January 2015 he became Director and
Deputy General Manager of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. He is currently Director and
Deputy General Manager of 37 Interactive Entertainment Network Technology Group Co. Ltd.Mr. Liu Jun was born in 1980 with Chinese nationality and has no right of permanent residence in a foreign country. At
present Mr. Liu Jun holds the offices of a Vice President of the 37 Interactive Entertainment Group and a Senior Vice President
of 37Mobile in charge of overseas cooperation business; since 24 March 2022 he has assumed the posts of a Director and a
Deputy General Manager of 37 Interactive Entertainment Network Technology Group Co. Ltd.; now he is a Director and a
Deputy General Manager of 37 Interactive Entertainment Network Technology Group Co. Ltd.Mr. Li Yang Han nationality was born in 1968. He is of Chinese nationality and has no right of permanent residence in a
foreign country. He received an LL.B. from Zhongnan University of Economics and Law and an LL.M. and a J.D. from Peking
University and completed a postdoctoral research program in laws at Wuhan University. He is a certified Independent Director.Since December 2020 he has been serving as Professor and Doctorate Supervisor of the Civil Commercial and Economic Law
School of China University of Political Science and Law with concurrent roles as Member of the Academic Committee of the
Intellectual Property Law Association of China Law Society Guest Consultant (the Fifth Session) of the Supreme People’s Court
and Hearing Officer of The Supreme People’s Procuratorate among other roles. On 24 December 2019 he became Independent
Director of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. Mr. Li is currently Independent Director of
37 Interactive Entertainment Network Technology Group Co. Ltd.
Mr. Ye Xin Han nationality was born in 1975. He is of Chinese nationality and has no right of permanent residence in a
foreign country. He received a bachelor's degree in accounting from Xi'an Jiaotong University a Master of Management degree
from Xi'an University of Technology and an EMBA degree from Guanghua School of Management Peking University and Cheung
Kong Graduate School of Business. He is a certified Independent Director. From 1995 to 2003 he worked at the Civil Aviation
Administration of China. From 2003 to 2005 he served as Deputy General Manager of Tsinghua Unisplendour Venture
Investment Co. Ltd. From 2005 to 2015 he served as Director Deputy General Manager Board Secretary and General Manager
of Shenzhen Coship Electronics Co. Ltd.. From 2016 to present he was General Manager of Tianshi Fund Management
(Shenzhen) Co. Ltd. And since 12 July 2021 he has been acting as Executive Director of Huili Resources. On 24 December 2019
he became Independent Director of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. Mr. Ye is currently
Independent Director of 37 Interactive Entertainment Network Technology Group Co. Ltd.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
42Mr. Lu Rui Han nationality was born in 1975 with Chinese nationality and has no right of permanent residence in a foreign
country. In 2006 he graduated from Accounting Department Sun Yat-Sen University where he obtained the Doctor’s degree in
Management Science and he has become a leading accounting talent nationwide. At present he is a Professor and a Doctoral
Supervisor in the Accounting Department School of Business Sun Yat-sen University. From July 1996 to August 2003 he served
successively as a Teaching Assistant and a Lecturer in the Department of Finance and Accounting Guangzhou Finance and Trade
Management Cadre Institute; from July 2006 to December 2008 he worked as a Lecturer at Lingnan (University) College Sun
Yat-sen University; from January 2009 to June 2016 he was an Associate Professor at Lingnan (University) College Sun Yat-sen
University; from July 2016 to December 2021 he became a Professor and a Doctoral Supervisor at Lingnan (University) College
Sun Yat-sen University; since January 2022 he has served as a Professor and a Doctoral Supervisor at School of Business Sun Yat-
sen University. From April 2010 to July 2018 he was an Independent Director of Guangzhou GCI Science & Technology Co. Ltd.;
from July 2011 to January 2017 he was an Independent Director of Guangzhou Haozhi Industrial Co. Ltd.; from January 2015 to
May 2019 he was an Independent Director of Xilong Scientific Co. Ltd; from December 2015 to October 2021 he was an
Independent Director of Foshan Electrical and Lighting Co. Ltd.; from April 2015 to December 2018 he was an Independent
Director of Guangzhou Huayuan Landscape Architecture Co. Ltd.; from April 2016 to March 2019 he was an Independent
Director of Youmi Technology Co. Ltd.; from January 2017 to March 2021 he concurrently held the posts of a Director and the
General Manager of Sun Yat-sen University Zijing Education Co. Ltd. Guangzhou; from August 2019 to October 2021 he was an
Independent Director of Huabang Construction and Investment Group Co. Ltd.; from September 2019 to September 2022 he
was an Independent Director of Shenzhen Kingsino Technology Co. ltd.; from May 2017 to May 2023 he was an Independent
Director of Guangzhou Goaland Energy Conservation Tech Co. Ltd.; Since April 2019 he has been an Independent Director of
Bank of Guangzhou Co. Ltd.; Since May 2020 he has been an Independent Director of PSBC Consumer Finance Co. Ltd.; Since
November 2021 he has been an Independent Director of Guangzhou Resource Environmental Protection Technology Co. ltd.;
Since 24 March 2022 he has served as an Independent Director of 37 Interactive Entertainment Network Technology Group Co.Ltd.; at present he assumes the post of an Independent Director of 37 Interactive Entertainment Network Technology Group Co.Ltd.Mr. Tao Feng Han nationality was born in 1980 with Chinese nationality and has no right of permanent residence in a
foreign country. He received the Doctor’s degree in Industrial Economics from Jinan University and has obtained the
Independent Director Qualification Certificate. From March 2013 to April 2014 he was engaged in the scientific research in the
direction of Industrial Economics at University of California Irvine in the United States; since July 2009 he has successively held
posts such as Deputy Director of Institute of Industrial Economics at Jinan University and at present he assumes the posts of
the Director of Institute of Industrial Economics Jinan University a Deputy Director of “the Belt and Road Initiative” and the
Guangdong-Hong Kong-Macao Greater Bay Area Research Institute the Chief Expert of JNU’s Urban High-Quality Development
Research Think Tank a Doctoral Supervisor the Executive Dean of the School of Private Economy Director of the Guangdong
Industrial Development and Guangdong-Hong Kong-Macao Regional Cooperation Research Center and the Director of the
Guangdong-Hong Kong-Macao Greater Bay Area Modern Industrial System Research Center. Since 2020 he has held concurrent
posts of an Executive Director of the China Society of Industrial Economics and the Vice Chairman of the Guangdong Economic
Society; from February 2021 to June 2023 he was an Independent Director of Guangxi Bossco Environmental Protection
Technology Co. Ltd.; since 17 May 2024 he has served as an Independent Director of Guangdong Baolihua New Energy Stock Co.Ltd.; since 24 March 2022 he has served as an Independent Director of 37 Interactive Entertainment Network Technology Group
Co. Ltd.; at present he assumes the post of an Independent Director of 37 Interactive Entertainment Network Technology
Group Co. Ltd.Mr. He Yang Han nationality was born in 1981. He is of Chinese nationality and has no right of permanent residence in a
foreign country. He received an MBA degree from University of Electronic Science and Technology of China. From June 2012 to
July 2014 he was Deputy General Manager of Chengdu 37Wan Network Technology Co. Ltd.. In July 2014 he became Director
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
43and General Manager of Jiangsu Aurora Network Technology Co. Ltd. In December 2018 he became Employee Supervisor of the
Fourth Supervisory Committee of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. In January 2019 he
became Chairman of the Supervisory Committee of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. Mr.He is currently Chairman of the Supervisory Committee of 37 Interactive Entertainment Network Technology Group Co. Ltd.Ms. Cheng Lin Han nationality was born in 1982. She is of Chinese nationality and has no right of permanent residence in a
foreign country. She is working on an EMBA program at Lingnan College Sun Yat-sen University. From 2011 to 2016 she was
Director of Public Affairs of 37 Interactive Entertainment (Shanghai) Technology Co. Ltd. She is currently Shareholder Supervisor
of 37 Interactive Entertainment Network Technology Group Co. Ltd.Ms. Liu Fengyong Han nationality was born in 1977. She is of Chinese nationality a member of the CPC and a bachelor’s
degree holder. And she has no right of permanent residence in a foreign country. From July 2000 to September 2005 she
worked for Guangzhou Pearl River Piano Group Co. Ltd. as a Legal Specialist. From November 2005 to August 2012 she was
Legal Director of Guangzhou Rockmobile Network Co. Ltd. In August 2012 she became Legal Manager of 37 Interactive
Entertainment (Shanghai) Technology Co. Ltd. In January 2015 she became Employee Supervisor of the Third Supervisory
Committee of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. And in January 2017 she became
Employee Supervisor of the Fourth Supervisory Committee of Wuhu 37 Interactive Entertainment Network Technology Group
Co. Ltd. She is currently Employee Supervisor of 37 Interactive Entertainment Network Technology Group Co. Ltd.Mr. Zhu Huaimin Han nationality was born in 1982. He is of Chinese nationality and has no right of permanent residence in
a foreign country. He holds an EMBA degree of China Europe International Business School. From July 2004 to July 2008 he
worked for Beijing Sina Internet Information Service Co. Ltd. From August 2008 to December 2009 he was Technical Manager of
Molihe Network Technology (Beijing) Co. Ltd. In October 2011 he joined 37 Interactive Entertainment (Shanghai) Technology
Co. Ltd. serving as Vice President of Technology. On 21 January 2019 he became Deputy General Manager of Wuhu 37
Interactive Entertainment Network Technology Group Co. Ltd. Mr. Zhu is currently Deputy General Manager of 37 Interactive
Entertainment Network Technology Group Co. Ltd.Mr. Ye Wei was born in 1983. He is a member of the CPC and has no right of permanent residence in a foreign country. He
has received a bachelor's degree is a Certified Public Accountant in China and is a Shenzhen Stock Exchange certified Board
Secretary. From August 2006 to July 2013 he was Audit Manager of Ernst & Young Guangzhou Office. From July 2013 to March
2015 he was Chief Financial Officer of 37 Interactive Entertainment (Shanghai) Technology Co. Ltd. On 30 March 2015 he
became Chief Financial Officer of Wuhu 37 Interactive Entertainment Network Technology Group Co. Ltd. On 6 January 2017 he
became Chief Financial Officer and Secretary to the Fourth Board of Directors of Wuhu 37 Interactive Entertainment Network
Technology Group Co. Ltd. Mr. Ye is currently Chief Financial Officer and Board Secretary of 37 Interactive Entertainment
Network Technology Group Co. Ltd.Offices held concurrently in shareholding entities:
□ Applicable □ Not applicable
Offices held concurrently in other entities:
□ Applicable □ Not applicable
Office held in the End of Paid by the
Name Other entity Start of tenure
entity tenure entity or not
the Civil Commercial and Economic Professor and
1 December
Li Yang Law School of China University of Doctorate Yes
2020
Political Science and Law Supervisor
Tianshi Fund Management 20 January
Ye Xin General Manager Yes
(Shenzhen) Co. Ltd. 2016
Lu Rui The School of Business of Sun Yat- Professor and 1 January 2022 Yes
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
44Sen University Doctorate
Supervisor
Dean and
The Institute of Industrial Economics
Tao Feng Doctorate 1 January 2020 Yes
of the Jinan University
Supervisor
Other information Not applicable
Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior
management as well as those who resigned in the Reporting Period:
□ Applicable □ Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior
management:
(1) Procedure for determining the remunerations of directors supervisors and senior management: The Remuneration and
Performance Assessment Committee of the Company's Board of Directors formulates the policy and plan for compensating the
Company's directors supervisors and senior management. The remunerations of directors and supervisors are reviewed and
approved by the General Meeting of Shareholders. The remunerations of senior management are reviewed and approved by the
Board of Directors. The Human Resources and Finance Departments of the Company support the Remuneration and Performance
Assessment Committee to implement the remuneration plan for the Company's directors supervisors and senior management.
(2) Criteria for determining the remunerations of directors supervisors and senior management: The remunerations of
directors and supervisors are determined based on the operational performance of the Company and the current market
conditions. The remunerations of senior management are determined according to the Company's relevant regulations taking into
account the overall remuneration of the gaming industry and the remuneration of comparable companies with a similar business
size as well as the responsibilities and contributions of the senior management in the Company.
(3) Payment of remunerations of directors supervisors and senior management: The remunerations of independent
directors are paid semiannually to their personal accounts as scheduled. The remunerations of other directors supervisors and
senior management are determined based on the results of their performance assessment and are paid monthly or as scheduled in
the remuneration payment system.Remuneration of directors supervisors and senior management for the Reporting Period
Unit: RMB'0000
Total before-tax Paid by any
Incumbent
Name Gender Age Office title remuneration from related party or
/Former
the Company not
Li Weiwei Male 47 Chairman of the Board Incumbent 1380.09 No
Zeng Kaitian Male 49 Vice Chairman of the Board Incumbent 1447.01 No
Hu Yuhang Male 48 Vice Chairman of the Board Incumbent 1489.14 No
Xu Zhigao Male 46 General Manager Incumbent 924.38 No
Director and Deputy General
Yang Jun Male 45 Incumbent 1304.06 No
Manager
Director and Deputy General
Liu Jun Male 44 Incumbent 907.82 No
Manager
Li Yang Male 56 Independent Director Incumbent 27 No
Ye Xin Male 49 Independent Director Incumbent 27 No
Lu Rui Male 49 Independent Director Incumbent 27 No
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
45Tao Feng Male 44 Independent Director Incumbent 27 No
Chairman of the Supervisory
He Yang Male 43 Incumbent 221.35 No
Committee
Cheng Lin Female 42 Supervisor Incumbent 343.66 No
Liu Fengyong Female 47 Supervisor Incumbent 75.38 No
Zhu Huaimin Male 42 Deputy General Manager Incumbent 418.38 No
Chief Financial Officer and
Ye Wei Male 41 Incumbent 498.66 No
Board Secretary
Total -- -- -- -- 9117.93 --
Other information:
□ Applicable □ Not applicable
VI Duty Performance by Directors during the Reporting Period
1. Board Meetings Convened during the Reporting Period
Meeting Date of the meeting Date of disclosure Resolutions of the meeting
Announcement on Resolutions of the 16th Meeting
The 16th Meeting of the
5 February 2024 6 February 2024 of the Sixth Board of Directors (Announcement No.
Sixth Board of Directors
2024-010) disclosed on www.cninfo.com.cn
Announcement on Resolutions of the 17th Meeting
The 17th Meeting of the
19 April 2024 20 April 2024 of the Sixth Board of Directors (Announcement No.
Sixth Board of Directors
2024-020) disclosed on www.cninfo.com.cn
Announcement on Resolutions of the 18th Meeting
The 18th Meeting of the
29 April 2024 30 April 2024 of the Sixth Board of Directors (Announcement No.
Sixth Board of Directors
2024-035) disclosed on www.cninfo.com.cn
Announcement on Resolutions of the 19th Meeting
The 19th Meeting of the
10 May 2024 11 May 2024 of the Sixth Board of Directors (Announcement No.
Sixth Board of Directors
2024-042) disclosed on www.cninfo.com.cn
Announcement on Resolutions of the 20th Meeting
The 20th Meeting of the
26 August 2024 27 August 2024 of the Sixth Board of Directors (Announcement No.
Sixth Board of Directors
2024-053) disclosed on www.cninfo.com.cn
Announcement on Resolutions of the 21st Meeting
The 21st Meeting of the
30 October 2024 31 October 2024 of the Sixth Board of Directors (Announcement No.
Sixth Board of Directors
2024-062) disclosed on www.cninfo.com.cn
2. Attendance of Directors at Board Meetings and General Meetings of Shareholders
Attendance of directors at board meetings and general meetings of shareholders
Total number Board
Board The director
of board Board meetings General
Board meetings meetings failed to attend
meetings the meetings attended by meetings of
Director attended the director two consecutive
director was attended way of shareholders
through a proxy failed to board meetings
supposed to on site telecommuni attended
attend or not
attend cation
Li Weiwei 6 6 0 0 0 No 2
Zeng Kaitian 6 6 0 0 0 No 2
Hu Yuhang 6 6 0 0 0 No 2
Yang Jun 6 6 0 0 0 No 2
Liu Jun 6 6 0 0 0 No 2
Li Yang 6 0 6 0 0 No 2
Ye Xin 6 0 6 0 0 No 2
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
46Lu Rui 6 0 6 0 0 No 2
Tao Feng 6 0 6 0 0 No 2
Explanation of why any director failed to attend two consecutive board meetings:
None.
3. Objections Raised by Directors on Matters of the Company
Indicate whether any directors raised any objections on any matter of the Company.□ Yes □ No
No such cases in the Reporting Period.
4. Other Information about Duty Performance by Directors
Indicate whether any recommendations from directors were adopted by the Company.□ Yes □ No
Explanation on adoption/rejection of recommendations of directors:
During the Reporting Period all directors of the Company actively performed their duties in accordance with the Company
Law the Securities Law and other laws and regulations as well as the Articles of Association of the Company and other regulations
and requirements. They put forward relevant proposals on important operational matters of the Company in the light of the actual
situation of the Company. The Company listened carefully to the suggestions of the directors to ensure that the decision-making
was scientific timely and efficient and that the interests of the listed Company and the shareholders were effectively safeguarded.VII Duty Performance by Specialized Committees under the Board of Directors during the
Reporting Period
Substantial Other
Particula
Number of opinion informatio
Date of rs about
Committee Members meetings Topic of meeting and n on duty
meeting objection
convened recommen performan
s (if any)
dations ce
1. The financial statements on which the
independent auditor had issued the
preliminary audit opinion were approved.
20 2. The Q4 2023 Work Summary and Q1 2024
March Work Plan of the Internal Control and Audit None None
2024 Department was approved.
Chairman:
3. The 2023 Annual Work Summary and 2024
Lu Rui
Annual Work Plan of the Internal Control and
Other
Audit members: Audit Department was approved. 6
Committee Li Weiwei 1. The 2023 Annual Report was approved.and Tao 2. The 2023 Final Financial Accounts Report
Feng was approved.
3. The 2023 Internal Control Self-assessment
19 April
Report was approved. None None
2024
4. The Proposal on the Re-appointment of
Accounting Firm was approved.
5. The 2023 Annual Special Report of the
Internal Control and Audit Department on
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
47Internal Control was approved.
1. The 2024 First Quarterly Report was
approved.
29 April
2. The Q1 2024 Work Summary and Q2 2024
2024
Work Plan of the Internal Control and Audit
Department was approved.
1. The 2024 Interim Report was approved.
2. The Q2 2024 Work Summary and Q3 2024
26 Work Plan of the Internal Control and Audit
August Department was approved. None None
2024 3. The 2024 Interim Special Report of the
Internal Control and Audit Department on
Internal Control was approved.
1. The 2024 Third Quarterly Report was
30 approved.
October 2. The Q3 2024 Work Summary and Q4 2024 None None
2024 Work Plan of the Internal Control and Audit
Department was approved.
26
1. The audit arrangements for the 2024 Annual
Decemb None None
Report were approved.er 2024
Chairman:
Ye Xin
Remuneratio
Other
n and members: 19 April 1. The Proposal on Adjusting Independent 1 None None
Appraisal Zeng 2024 Directors' Allowances was approved.Committee Kaitian and
Lu Rui
Chairman:
Li Yang
Other 1. The Proposal on Adjusting the Members of
Nomination 19 April
members: 1 the Audit Committee of the Board of Directors None None
Committee 2024
Li Weiwei was approved.and Tao
Feng
1. The 2023 Final Dividend Plan was approved.
19 April 2. The Proposal on the Shareholder Return
None None
2024 Plan for the Next Three Years (2024-2026) was
Chairman: approved.Li Weiwei 10 May 1. The 2024 First Quarterly Dividend Plan was
None None
Strategy Other 2024 approved.
4
Committee members: 26
1. The 2024 Interim Dividend Plan was
Yang Jun August None None
approved.and Ye Xin 2024
30
1. The 2024 Third Quarterly Dividend Plan was
October None None
approved.
2024
VIII Duty Performance by the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in the Reporting Period.□ Yes □ No
The Supervisory Committee raised no objections with respect to matters of the Company.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
48IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the parent at the period-end 2
Number of in-service employees of principal subsidiaries at the
3247
period-end
Total number of in-service employees at the period-end 3249
Total number of paid employees in the Reporting Period 3249
Number of retirees to whom the parent or its major subsidiaries
0
need to pay retirement pensions
Functions
Function Employees
Marketing 1064
Technical 318
Financial 109
Administrative 38
R&D 1000
Teaching 159
Operation 251
Others 310
Total 3249
Educational backgrounds
Educational background Employees
Master’s degree and above 279
Bachelor’s degree 2237
Junior college and below 733
Total 3249
2. Employee Remuneration Policy
The Company strictly observes the Labor Law of the People's Republic of China and other relevant laws and regulations
including rules regulations and normative documents issued by the various ministries and commissions of the State Council and
has implemented an employment contract system. The Company protects the rights and interests of employees by strictly
implementing China's employment system labor protection system social security system and medical security system and paying
premiums of pension insurance medical insurance unemployment insurance work injury insurance and maternity insurance and
making contributions to the Housing Provident Fund for employees.The Company provides employees with generous welfare benefits such as supplementary commercial insurance interest-free
housing loans funds for the newborn aid funds nutritious breakfast meal allowances physical checks employee clubs team
building activities and gyms.The total amount of employee remunerations of the Reporting Period is RMB1514 million accounting for 10.37% of the total
costs (including cost of sales distribution and selling expenses general and administrative expenses and R&D expenses). The
profitability of the Company has a low sensitivity to the variation in the total amount of employee remunerations. At the end of the
Reporting Period the Company's core technical staff accounts for 22.62% of the total number of employees and their
remunerations account for 28.01% of the total amount of employee remunerations.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
493. Training Plans
The Company conducts staff training focusing on improving employee’s quality and working skills promoting their
occupational development and attracting developing and retaining talents to support the Company’s business development and
human resources appreciation. In addition the training program is committed to promoting the corporate culture values and code
of conduct to strengthen cohesion. Guided by the Company’s strategies the program also introduced advanced management
concepts and facilitated internal management upgrades which was a booster for cadre training and strategy implementation.In 2024 the 37 Interactive Entertainment Learning and Development Centre focused on cultivating “backbone talent”
addressing the training needs of core teams and promoting post-training behavioral transformation. Training was structured
around leadership professional competence and core general capabilities with a focus on enhancing the abilities of key personnel.Programs launched included the Leading Leap Plan Integration Plan New Hire Plan (X+ Program “Hello Future!”) Super
Assistance Plan (new hire mentors and internal trainer development) 37TALK (AI-focused sessions and professional insight forums)
and business unit-specific training camps. Based on business requirements the Centre customized training solutions to help solve
practical business problems.
4. Labor Outsourcing
□ Applicable □ Not applicable
Total hours of labor outsourced 616993.66
Total payment for labor outsourcing (RMB) 33285855.29
X Profit Distribution (in the Form of Cash and/or Stock)
The profit distribution policy especially the formulation implementation and amendments to the cash dividend policy in the
Reporting Period:
□ Applicable □ Not applicable
In order to further promote a scientific sustained and consistent shareholder return mechanism increase the transparency
and operability of profit distribution policy decisions and effectively protect the legitimate rights and interests of public
investors the Company has formulated the Shareholder Return Plan of 37 Interactive Entertainment Network Technology Group
Co. Ltd. for the Next Three Years (2024-2026) (hereinafter referred to as the "Shareholder Return Plan").In order to promote the high-quality development of listed companies in accordance with the spirit and relevant
requirements of the document "Several Opinions of the State Council on Strengthening Supervision Preventing Risks and
Promoting the High-quality Development of the Capital Market" the Company actively strengthens the awareness of returning
to shareholders promotes the concept of returning to shareholders and value creation and increases the frequency of dividend
payouts. These moves to strengthen investor returns and share growth results with investors will boost their confidence in
holding shares in the Company. During the Reporting Period the Company implemented four dividend plans in a year including
the 2023 final dividend plan the 2024 firstly quarterly dividend plan the 2024 interim dividend plan and the 2024 third
quarterly dividend plan on the premise of ensuring the normal operation and development of the Company taking into account
the reasonable investor returns and the sustainable development of the Company. The dividend plans of the Company are all in
compliance with the Articles of Association of the Company.The Company’s 2023 final dividend plan was approved at the 19th Meeting of the Sixth Board of Directors and the 2023 Annual
General Meeting of Shareholders. According to the plan with a fixed dividend payout ratio based on the total issued share capital
(exclusive of shares in the Company’s account for repurchased shares) on the date of record a cash dividend of RMB3.70 (tax
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
50inclusive) per 10 shares was planned to be distributed to all the shareholders of the Company with the remaining undistributed
profit carried forward to the next year; and there would be no bonus issue from either profit or capital reserves.The Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Decide on the 2024
Interim Dividend Plan was approved at the 2023 Annual General Meeting of Shareholders. As such the Board of Directors was
authorized to handle with full power all matters related to the 2024 interim dividend plan.The Company’s 2024 first quarterly dividend plan was approved at the 19th Meeting of the Sixth Board of Directors. According
to the plan with a fixed dividend payout ratio based on the total issued share capital (exclusive of shares in the Company’s account
for repurchased shares) on the date of record a cash dividend of RMB2.10 (tax inclusive) per 10 shares was planned to be
distributed to all the shareholders of the Company; and there would be no bonus issue from either profit or capital reserves.The Company’s 2024 interim dividend plan was approved at the 20th Meeting of the Sixth Board of Directors. According to the
plan with a fixed dividend payout ratio based on the total issued share capital (exclusive of shares in the Company’s account for
repurchased shares) on the date of record a cash dividend of RMB2.10 (tax inclusive) per 10 shares was planned to be distributed
to all the shareholders of the Company; and there would be no bonus issue from either profit or capital reserves.The Company’s 2024 third quarterly dividend plan was approved at the 21st Meeting of the Sixth Board of Directors. According
to the plan with a fixed dividend payout ratio based on the total issued share capital (exclusive of shares in the Company’s account
for repurchased shares) on the date of record a cash dividend of RMB2.10 (tax inclusive) per 10 shares was planned to be
distributed to all the shareholders of the Company; and there would be no bonus issue from either profit or capital reserves.The above-mentioned dividend plans were carried out on 21 May 2024 24 May 2024 4 September 2024 and 8 November
2024 respectively representing a total dividend payout amount of RMB2.2 billion (tax inclusive) in cash.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting of shareholders
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
If the Company has no dividend plan it should disclose the
specific reasons and the next steps it intends to take to N/A
enhance investor returns
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully Yes
protected
In case of adjusting or changing the cash dividend policy the
conditions and procedures involved are in compliance with N/A
applicable regulations and transparent
Indicate whether the Company fails to put forward a cash dividend proposal despite the facts that the Company has made profits
in the Reporting Period and the profits of the Company as the parent distributable are positive.□ Applicable □ Not applicable
Final dividend plan:
□ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 3.70
Share base (share) 2212237681
Cash dividends (RMB) (tax inclusive) 818527941.97
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
51Cash dividends in other forms (such as share repurchase)
100704439.97
(RMB)
Total cash dividends (including those in other forms) (RMB) 919232381.94
Distributable profit (RMB) 3522217783.24
Total cash dividends (including those in other forms) as % of
100%
total profit to be distributed
Applicable cash dividend policy
If it is difficult to identify the development stage of the Company but it has a significant capital expenditure arrangement when
making profit distribution cash dividends shall account for no less than 20% in the profit distribution.Details of the cash and/or stock dividend plan
Upon approval by the Board of Directors the Company’s 2024 final dividend plan is as follows: With a fixed dividend payout
ratio based on the total issued share capital (exclusive of shares in the Company’s account for repurchased shares) on the date
of record a cash dividend of RMB 3.70 (tax inclusive) per 10 shares is planned to be distributed to all the shareholders of the
Company with the remaining undistributed profit carried forward to the next year; and there will be no bonus issue from either
profit or capital reserves. The above dividend plan is consistent with the Company’s performance growth and also in line with
relevant provisions of the Company Law the Company’s Articles of Association the Company’s Shareholder Return Plan etc. For
further information please visit http://www.cninfo.com.cn.XI Establishment and Implementation of Internal Control System during the Reporting Period
1. Internal Control Establishment and Implementation
During the Reporting Period in strict accordance with the requirements of the CSRC the Shenzhen Stock Exchange and
such laws and regulations as the Company Law and the Company’s Articles of Association the Company established a strict
internal control management system. Based on this in combination with industry characteristics and actual business operation
the Company continuously improved and refined its internal control system and intensified internal audit supervision.Meanwhile the Company continuously intensified the internal control awareness and responsibility of the Board of Directors
and key positions fully recognized the significance of complete internal control system in improving business management
enhancing risk prevention and control and helping enterprises to achieve high-quality development and strengthened the
awareness of operation in compliance. By doing so the Company has ensured that its internal control system has been
effectively executed practically boosted its level of standardized operation promoted its healthy and sustainable development
and protected the interests of the Company and all of its shareholders.
2. Material Internal Control Weaknesses Identified during the Reporting Period
□ Yes □ No
XII Subsidiary Management during the Reporting Period
Subsidiary Management plan Progress Problems Solutions Solution progress Subsequent plan
Shanghai Tingxiong
In strict accordance with the Rules
Network Technology
for the Management of Majority-
Co. Ltd. and other
owned Subsidiaries the Company
subsidiaries newly
strengthened guidance and
included in the
compliance with respect to the
consolidated
subsidiaries newly included in the Completed N/A N/A N/A N/A
financial statements
consolidated financial statements.of the Reporting
Under the authorization of the
Period see Note IX
Company the subsidiaries carried
Changes to the
out activities and operated
Consolidation Scope
independently.in Part X.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
52XIII Internal Control Assessment Report or Internal Control Audit Report
1. Internal Control Assessment Report
Date of full disclosure of the internal
19 April 2025
control assessment report
Index of full disclosure of the internal
http://www.cninfo.com.cn
control assessment report
Ratio of the total assets of the
organizations included in the assessment 100.00%
to the Company's consolidated total assets
Ratio of the revenue of the organizations
included in the assessment to the 100.00%
Company's consolidated revenue
Deficiency identification criteria
Category Financial report Non-financial report
Signs of material deficiencies in financial
The identification of deficiencies in non-
report include: (1) Failure of control
financial reports is mainly based on the
environment. (2) Misconduct of directors
degree of impact of the deficiencies on
supervisors or senior managers. (3) Major
the effectiveness of business procedures
mistakes in current financial report which
and the possibility of their occurrence. If
fail to be identified by the Company's
the possibility of the deficiency is
internal control. (4) The supervision of the
relatively low it will reduce the work
Audit Committee and audit department on
efficiency or effectiveness increase the
the Company’s financial report and on the
uncertainty of the effectiveness or make
internal control over internal report is
the work result deviate from the
ineffective. Signs of significant deficiencies
expected goal the deficiency is a general
in financial report include: (1) Failure to
deficiency. If the possibility of the
choose and apply accounting policies
deficiency is relatively high it will
Qualitative criteria according to widely accepted accounting
significantly reduce the work efficiency
standards. (2) Failure to establish anti-fraud
or effectiveness significantly increase
procedures and control management. (3)
the uncertainty of the effectiveness or
Lack of corresponding control mechanism
make the work result significantly
for accounting treatment of unconventional
deviate from the expected goal the
or special transactions or lack of
deficiency is a significant deficiency. If
corresponding compensatory control. (4)
the possibility of the deficiency is
One or more deficiencies in the control of
relatively high it will severely reduce the
the period-end financial reporting process
work efficiency or effectiveness severely
and failure to reasonably ensure true and
increase the uncertainty of the
complete financial reports. General
effectiveness or make the work result
deficiencies refer to the control deficiencies
severely deviate from the expected goal
other than material and significant
the deficiency is a general deficiency.deficiencies mentioned above.The Company views 5% of the total profit as
the indicator of overall importance of its The Company views 5% of direct loss of
income statement and views 5% of net
the Company’s net assets as the
assets as the indicator of overall importance indicator of importance of non-financial
of its balance sheet. When a potential
report. When the direct loss is larger
misstatement is larger than or equal to 5% than or equal to 5% of the net assets it
of the total profit in the income statement
is considered as a material deficiency. If
Quantitative criteria or a potential misstatement is larger than or the direct loss is lower than 5% but
equal to 5% of net assets in the balance
larger than or equal to 3% of the net
sheet it is considered as a material assets it is considered as a significant
deficiency. If a potential misstatement is
deficiency. If the direct loss is lower than
lower than 5% but larger than or equal to 3% of the net assets it is considered as a
3% of the total profit in the income general deficiency.
statement or a potential misstatement is
lower than 5% but larger than or equal to
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
533% of the net assets in the balance sheet it
is considered as a significant deficiency. If a
potential misstatement is lower than 3% of
the total profit in the income statement or
a potential misstatement is lower than 3% of
the net assets in the balance sheet it is
considered as a general deficiency.Number of material deficiencies in
0
financial reports
Number of material deficiencies in non-
0
financial reports
Number of significant deficiencies in
0
financial reports
Number of significant deficiencies in non-
0
financial reports
2. Internal Control Audit Report
□ Applicable □ Not applicable
Opinion paragraph
Huaxing Certified Public Accountants LLP is of the opinion that 37 Interactive Entertainment Network Technology Group Co. Ltd.maintained in all material respects effective internal control over financial reporting as of 31 December 2024 based on the
Basic Rules on Enterprise Internal Control and other applicable regulations.Report disclosed or not Disclosed
Disclosure date 19 April 2025
Index to the disclosed report http://www.cninfo.com.cn
Type of opinion Unmodified unqualified opinion
Material defects in internal control not related to financial
No
reporting
Indicate whether any modified opinion is expressed in the Internal Control Audit Report.□ Yes □ No
Indicate whether the Internal Control Audit Report is consistent with the internal control self-assessment report issued by the
Company’s Board of Directors.□ Yes □ No
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
54Part V Environmental and Social Responsibility
I Material Environmental Issues
Indicate whether the Company or any of its subsidiaries falls into major pollutant-discharge entities published by environmental
protection authorities.□ Yes □ No
Administrative punishments received during the Reporting Period due to environmental issues:
Name of the
Reason for Impact on the
Company or Regulation violated Punishment Rectification
punishment Company
subsidiary
N/A N/A N/A N/A N/A N/A
Other environmental information in relation to major pollutant-discharge entities:
37 Interactive Entertainment is not a major pollutant-discharge entity published by environmental protection authorities.
During the Reporting Period the Company strictly complied with various environmental protection laws and regulations and
received no punishments due to violation of these laws and regulations.Actions taken during the Reporting Period to reduce carbon emissions and the results:
□ Applicable □ Not applicable
37 Interactive Entertainment has integrated “sustainable development” into its corporate vision actively fulfilling its
environmental responsibilities working with stakeholders to address the challenges of climate change continuously optimizing
its path towards carbon neutrality and steadily progressing towards the goal of carbon-neutral corporate operations.In response to climate change the Company has proactively conducted climate-related risk and opportunity analyses for
several consecutive years taken diverse measures to manage climate risks and promoted energy conservation and consumption
reduction at the newly operational Global headquarters and other office locations. The Company continuously monitors its full
life cycle carbon emissions and has engaged a globally renowned testing and certification body to conduct a new round of carbon
audits. In 2024 the Company’s direct emissions (Scope 1) were 133.61 tons and energy indirect emissions (Scope 2) were 602.78
tons. These two categories represent carbon emissions within the operational boundaries of the Company reflecting a YoY
decrease of 15.12%.The Company actively responded to the requirements of laws and regulations such as the Rules for the Issuance and Trading
of Green Power Certificates for Renewable Energy issued by the National Energy Administration participated in green power
consumption and promoted the development of the national renewable energy industry. In 2024 the Company purchased 11.1
million kilowatt-hours of domestic wind and solar green power certificates with green electricity accounting for 91.51% of total
annual electricity consumption.In terms of ecosystem and biodiversity protection the Company carried out its first nature-related risk and opportunity
analysis during the Reporting Period to assess the impact and dependence of its operations on nature. It also supported
professional environmental organizations in wetland conservation projects jointly developed a science education platform for
wetland protection with stakeholders and encouraged employee and youth participation in environmental initiatives
contributing to the creation of a better natural environment.
37 Interactive Entertainment has set emission reduction targets aligned with the 1.5°C global warming limit goal under the
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
55Paris Agreement and during the Reporting Period the targets were validated by the Science Based Targets initiative (SBTi) a
globally recognized climate action organization.Reasons for the non-disclosure of other environmental information:
The Company is not a major pollutant-discharge entity published by environmental protection authorities. During the
Reporting Period the Company received no punishments due to violation of environmental protection laws and regulations.II Corporate Social Responsibility (CSR)
37 Interactive Entertainment actively fulfils its corporate social responsibility co-creating social value with stakeholders.
With the support of experts and professional institutions the Company has developed gamified public interest platforms for
ancient book restoration aerospace science education and training support for children with autism enhancing the engagement
and enjoyment of knowledge and skills acquisition. The Company has also deepened industry–academia collaboration through
innovative competitions scholarships and grants thematic research projects and the sharing of industry insights nurturing the
next generation of promising talent. Under the leadership of the Company’s CPC Committee volunteer services such as digital
literacy classes on campus blood donation drives and community visits were conducted for 41 sessions spreading warmth and
care.The Company has also made active investments in areas such as innovation-driven development talent cultivation and
cybersecurity. For detailed measures related to these topics please refer to the relevant sections of the Company’s 2024
Environmental Social and Governance Report.III Efforts in Poverty Alleviation and Rural Revitalization
1. Supporting the revitalization of rural talent and promoting high-quality development of county-level high school education
37 Interactive Entertainment has established a philanthropic strategy to “Support the Revitalization of Rural Education” and
in 2014 initiated the founding of the Guangdong Youxin Charity Foundation. The Foundation is committed to promoting high-
quality and balanced educational development in underdeveloped regions. Working with schools charitable organizations
corporate volunteers and relevant government departments the Foundation provides rural youth with diverse support in
developing innovative thinking exploring scientific knowledge and accessing scholarships and grants.During the Reporting Period the Company through the Guangdong Youxin Charity Foundation continued to implement a
range of flagship programs including the “Youxin Peers” high school education assistance program the high school enrolment
guarantee program for ethnic minority girls the “Vocational Wisdom Calling” career planning program the “EmbraceExploration” Guangzhou Summer Camp and the free reading program to empower the diversified development of rural youth
talent. To further cultivate young people’s capacity for innovation and sense of responsibility and to guide them in applying their
knowledge to practical scenarios for sustainable development the Company also organized four co-creation activities. These
included short drama improvisation on cybersecurity literacy and the creation of gamified tools for wetland protection and
aerospace science education.As of the end of 2024 the Company’s rural education revitalization initiatives had covered 6138 high school students across
57 counties and districts in 12 provinces/autonomous regions/municipalities including Anhui Sichuan Gansu Guizhou and
Jiangxi. During the Reporting Period 2767 students were still within the funded period. Some recipients who sat the 2024
national college entrance examination achieved outstanding results with admissions to top universities such as Tsinghua
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
56University Peking University Fudan University and Sichuan University marking the best performance in the history of the
“Youxin Peers” program.
2. Supporting rural specialty products and promoting the revitalization of rural industry and culture
37 Interactive Entertainment actively responded to the “10000 Enterprises Revitalize 10000 Villages” initiative and the
“Hundred-Thousand-Ten Thousand Project” leveraging its own strengths and integrating resources from multiple parties to
promote the high-quality development of rural specialty industries.Through cultural creative plans multi-channel product promotions and partnerships across the industrial chain the
Company helped expand the sales channels of Zhecheng lotus seeds a specialty agricultural product from Wuwei Anhui
Province supporting increased income for local farmers. The Company also enhanced the cultural value of rural products—for
example integrating the theme of ancient book restoration into creative packaging designs for local products such as honey and
black tea thereby raising public awareness of the restoration techniques of ancient texts.During the Reporting Period the Company invested RMB745000 to support the development of specialty industries such as
lotus seeds Miao embroidery and tea in Anhui Guizhou and Guangdong.To improve rural infrastructure the Company donated 100 solar-powered street lights to Zhen’an Town Yunfu Guangdong
Province enhancing the convenience of local residents’ night-time travel. In promoting rural culture the Company led
employees to personally participate in agricultural support volunteer activities such as crop harvesting and sowing fostering
greater engagement and interaction. In collaboration with stakeholders the Company also integrated rural specialty cuisine and
intangible cultural heritage food preparation techniques into the digital product My Intangible Cultural Heritage Treasure: A
Culinary Journey exploring a new model of “digital empowerment of intangible cultural heritage for rural revitalization”.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
57Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares as
Shares as
dividend
New dividend Percenta converte Percenta
Number issu converte Other Subtotal Number
ge (%) d from ge (%)
es d from
capital
profit
reserves
1. Restricted shares 610515810 27.53% 2754578 2754578 613270388 27.65%
1.1 Shares held by the
government
1.2 Shares held by
state-owned
corporations
1.3 Shares held by
other domestic 610515810 27.53% 2754578 2754578 613270388 27.65%
investors
Including: Shares
held by domestic
corporations
Shares
held by domestic 610515810 27.53% 2754578 2754578 613270388 27.65%
natural persons
1.4 Shares held by
overseas investors
Including: Shares
held by overseas
corporations
Shares
held by overseas natural
persons
2. Un-restricted shares 1607348471 72.47% -2754578 -2754578 1604593893 72.35%
2.1 RMB-
denominated common 1607348471 72.47% -2754578 -2754578 1604593893 72.35%
shares
2.2 Domestically
listed foreign shares
2.3 Overseas listed
foreign shares
2.4 Others
3. Total shares 2217864281 100.00% 0 0 2217864281 100.00%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
58Reasons for share changes:
□ Applicable □ Not applicable
During the Reporting Period the shareholding increases by the Company’s directors and senior management were locked
up according to applicable laws regulations and regulatory documents.Approval of share changes:
□ Applicable □ Not applicable
Transfer of share ownership:
□ Applicable □ Not applicable
Effects of share changes on the basic earnings per share diluted earnings per share equity per share attributable to the
Company’s common shareholders and other financial indicators of the prior year and the prior accounting period respectively:
□ Applicable □ Not applicable
During the Reporting Period the Company implemented share repurchases with its securities account for repurchased
shares by the way of centralized bidding. For details of the repurchases see the announcements on repurchase progress. As per
the Accounting Standards for Business Enterprises the aforesaid repurchased shares were excluded in the calculation of basic
earnings per share.Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable □ Not applicable
2. Changes in Restricted Shares
□ Applicable □ Not applicable
Unit: share
Increase in Shares with
Beginning Ending
Name of restricted shares restriction lifted Reason for
restricted restricted Lifting date
shareholder in the Reporting in the Reporting restriction
shares shares
Period Period
Li Weiwei 242421239 0 0 242421239 Subject to regulations
Zeng Kaitian 184008280 847275 0 184855555 in respect of changes
Locked-up
Hu Yuhang 151198263 0 0 151198263 in shareholdings of
shares of
Xu Zhigao 27340427 1907303 0 29247730 directors supervisors
senior
Yang Jun 1575000 0 0 1575000 and senior
management
management in the
Liu Jun 3972601 0 0 3972601
Company Law etc.Total 610515810 2754578 0 613270388 -- --
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable □ Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□ Applicable □ Not applicable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
593. Existing Staff-Held Shares
□ Applicable □ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Holdings as at the Period-End
Unit: share
Number of
Number of
common
preferred Number of preferred
shareholde
shareholder shareholders with resumed
rs at the
Number of common s with voting rights at the month-
191596 month-end 179868 0 0
shareholders resumed end prior to the disclosure
prior to the
voting rights of this Report (if any) (see
disclosure
(if any) (see note 8)
of this
note 8)
Report
5% or greater shareholders or the top 10 shareholders (exclusive of shares lent in refinancing)
Increase/de Pledged marked or frozen
Shareholdi crease in Restricted Un- status
Nature of
Name of shareholder ng Shares held the shares restricted
shareholder
percentage Reporting held shares held Status Shares
Period
Domestic
323228312424212
Li Weiwei natural 14.57% 0 80807080
939
person
Domestic
246474071848555
Zeng Kaitian natural 11.11% 1129700 61618519
455
person
Domestic
201597681511982
Hu Yuhang natural 9.09% 0 50399421 Pledged 31450000
463
person
Hong Kong Securities
Overseas -
Clearing Company 2.64% 58539781 0 58539781
corporation 185070423
Ltd.Domestic
Wu Weidong natural 1.86% 41280957 19189600 0 41280957
person
Domestic
2924773
Xu Zhigao natural 1.76% 38996974 2543071 9749244
0
person
Domestic
Wu Weihong natural 1.59% 35253178 0 0 35253178
person
China Minsheng
Banking Corp. Ltd.－
China Securities
Cartoon Games Other 1.43% 31668085 6798082 0 31668085
Trading Open-ended
Index Securities
Investment Fund
Industrial and
Other 1.21% 26750529 15132700 0 26750529
Commercial Bank of
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
60China Limited－
Huatai-PineBridge CSI
300 Trading Open-
ended Index
Securities Investment
Fund
China Construction
Bank Corporation－E
Fund CSI 300 Trading
Other 0.83% 18481557 15106300 0 18481557
Open-ended Index
Sponsored Securities
Investment Fund
Strategic investor or general
corporation becoming a top-10
N/A
shareholder in a rights issue (if any)
(see note 3)
1. Among the top 10 shareholders of the Company Wu Weidong and Wu Weihong are shareholders
acting in concert.Related or acting-in-concert parties
2. The Company is not aware of whether there is among the other top 10 shareholders any related
among the shareholders above
parties or acting-in-concert parties as defined in the Measures on the Administration of Acquisition
of Listed Companies.Explain if any of the shareholders
above was involved in
N/A
entrusting/being entrusted with voting
rights or waiving voting rights
The Company had cumulatively repurchased 18166147 shares (or 0.82% of the total share capital as
Special account for share repurchases
at 31 December 2024) with its securities account for repurchased shares by the way of centralized
(if any) among the top 10 shareholders
bidding. The said account of repurchased shares is not listed as a top 10 un-restricted common
(see note 10)
shareholder as required.Top 10 un-restricted shareholders
Shares by class
Name of shareholder Un-restricted shares held
Class Shares
RMB-
denominated
Li Weiwei 80807080 80807080
common
shares
RMB-
denominated
Zeng Kaitian 61618519 61618519
common
shares
RMB-
Hong Kong Securities Clearing denominated
5853978158539781
Company Ltd. common
shares
RMB-
denominated
Hu Yuhang 50399421 50399421
common
shares
RMB-
denominated
Wu Weidong 41280957 41280957
common
shares
RMB-
denominated
Wu Weihong 35253178 35253178
common
shares
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
61China Minsheng Banking Corp. Ltd.－ RMB-
China Securities Cartoon Games denominated
3166808531668085
Trading Open-ended Index Securities common
Investment Fund shares
Industrial and Commercial Bank of RMB-
China Limited－Huatai-PineBridge CSI denominated
2675052926750529
300 Trading Open-ended Index common
Securities Investment Fund shares
China Construction Bank Corporation RMB-
－E Fund CSI 300 Trading Open-ended denominated
1848155718481557
Index Sponsored Securities Investment common
Fund shares
RMB-
37 Interactive Entertainment Network
denominated
Technology Group Co. Ltd.-The Fourth 16301534 16301534
common
Employee Stock Ownership Plan
shares
Related or acting-in-concert parties 1. Among the top 10 shareholders of the Company Wu Weidong and Wu Weihong are shareholders
among the top 10 un-restricted acting in concert.shareholders as well as between the 2. The Company is not aware of whether there is among the other top 10 shareholders any related
top 10 un-restricted shareholders and parties or acting-in-concert parties as defined in the Measures on the Administration of Acquisition
the top 10 shareholders of Listed Companies.Related or acting-in-concert parties
among the top 10 un-restricted
shareholders as well as between the N/A
top 10 un-restricted shareholders and
the top 10 shareholders
5% or greater shareholders top 10 shareholders and top 10 un-restricted public shareholders involved in refinancing shares
lending:
□ Applicable □ Not applicable
Unit: Share
5% or greater shareholders top 10 shareholders and top 10 un-restricted public shareholders involved in refinancing shares lending
Shares in the common Shares lent in Shares lent in
Shares in the common
account and credit refinancing and not yet refinancing and not
account and credit account
account at the period- returned at the period- yet returned at the
at the period-end
Full name of shareholder begin begin period-end
As % of As % of As % of
Total Total Total As % of total Total
total share total share total share
shares shares shares share capital shares
capital capital capital
China Minsheng Banking
Corp. Ltd.－China
Securities Cartoon Games 24870003 1.12% 5167400 0.23% 31668085 1.43% 0 0.00%
Trading Open-ended Index
Securities Investment Fund
Industrial and Commercial
Bank of China Limited－
Huatai-PineBridge CSI 300 11617829 0.52% 34800 0.00% 26750529 1.21% 0 0.00%
Trading Open-ended Index
Securities Investment Fund
China Construction Bank
Corporation－E Fund CSI
300 Trading Open-ended 3375257 0.15% 964900 0.04% 18481557 0.83% 0 0.00%
Index Sponsored Securities
Investment Fund
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
62Indicate whether there was any change to the top 10 shareholders or top 10 un-restricted public shareholders due to refinancing
shares lending/returning during the Reporting Period compared to the same period of last year.□ Applicable □ Not applicable
Indicate whether any of the top 10 common shareholders or the top 10 un-restricted common shareholders of the Company
conducted any promissory repo during the Reporting Period.□ Yes □ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: controlled by a natural person
Type of the controlling shareholder: natural person
Name of the controlling shareholder Nationality Residency in other countries or regions or not
Li Weiwei Chinese Not
Main occupation and position Chairman of the Board
Interests held in other domestically and overseas listed
None
companies in the Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable □ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: domestic natural person
Type of the actual controller: natural person
Relationship with the Residency in other countries or
Name of the actual controller Nationality
actual controller regions or not
Li Weiwei Actual controller himself Chinese Not
Main occupation and position Chairman of the Board
Controlling interests in other domestically and
None
overseas listed companies in the past 10 years
Change of the actual controller in the Reporting Period:
□ Applicable □ Not applicable
No such cases in the Reporting Period.Ownership and control relationship between the actual controller and the Company:
Li Weiwei
14.57%
37 Interactive Entertainment Network Technology Group Co. Ltd.
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
63Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable □ Not applicable
4. Indicate whether the cumulative number of shares held by the Company’s controlling shareholder or the
largest shareholder and its acting-in-concert parties that are in pledge accounts for over 80% of their total
shareholdings in the Company.□ Applicable □ Not applicable
5. Other 10% or Greater Corporate Shareholders
□ Applicable □ Not applicable
6. Restrictions on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Undertaking Makers
□ Applicable □ Not applicable
IV Share Repurchases during the Reporting Period
Progress on share repurchases:
□ Applicable □ Not applicable
Date of the As % of Amount to be Shares repurchased
Number of Purpose of Number of
repurchase total used for Intended as % of total target
shares to be repurchased shares
plan’s share repurchase repurchase period shares (if any) under
repurchased shares repurchased
disclosure capital (RMB’0000) equity incentive plan
Within 12 months For subsequent
following the employee stock
12 November 30000-
26086956 1.18% Board’s approval of ownership plans 12539547
202260000
the repurchase or other equity
plan incentive plans
Within 12 months
following the
All to be retired
28 December 10000- approval of the
5899705 0.27% to reduce the 5626600
2023 20000 repurchase plan by
registered capital
a general meeting
of shareholders
Note: The Company has completed the retirement procedures for the above-mentioned repurchased shares at the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on 22 January 2025. The number of shares
retired is 5626600 shares accounting for 0.25% of the Company's total share capital before the retirement of the repurchased
shares. Upon the completion of this retirement of shares the Company's total share capital changed from 2217864281 shares
to 2212237681 shares.For further information please refer to the Announcement on the Completion of Retirement of Repurchased Shares & Share
Change which has been disclosed by the Company on http://www.cninfo.com.cn.Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable □ Not applicable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
64Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
65Part VII Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unqualified opinion with an emphasis of matter paragraph
Date of report signing 18 April 2025
Name of the independent auditor Huaxing Certified Public Accountants LLP
Name of the certified public accountants Zhang Fengbo and Gao Yunjun
Independent Auditor’s Report
To all the shareholders of 37 Interactive Entertainment Network Technology Group Co. Ltd.:
I Opinion
We have audited the financial statements of 37 Interactive Entertainment Network Technology Group Co. Ltd. (hereinafter
referred to as the “Company”) which comprise the consolidated and the Company’s balance sheets as at 31 December 2024 the
consolidated and the Company’s income statements the consolidated and the Company’s cash flow statements and the
consolidated and the Company’s statements of changes in shareholders’ equity for the year then ended as well as the notes to the
financial statements.In our opinion the accompanying financial statements present fairly in all material respects the consolidated and the
Company’s financial positions as at 31 December 2024 and the consolidated and the Company’s operating results and cash flows
for the year then ended in conformity with China’s Accounting Standards for Business Enterprises (CAS).II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report.We are independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants and we have
fulfilled our other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.III Emphasis MatterUsers of the financial statements are kindly reminded to pay attention to Note XVI (VII) “Other Significant Transactions andEvents with Influence on Investors’ Decision-making” to the financial statements: On 27 June 2023 the Company Mr Li Weiwei (the
actual controller and Chairman of the Board of the Company) and Mr Zeng Kaitian (the Vice Chairman of the Board of the Company)
received the Notification of the China Securities Regulatory Commission on Case Filing (CSRC Case No. 03720230061 No.
03720230062 No. 03720230063) from the said commission (hereinafter referred to as the “CSRC”) respectively. For suspected
information disclosure violations according to the Securities Law of the People's Republic of China the Administrative Penalty Law
of the People's Republic of China and other applicable laws and regulations the CSRC decided to initiate an investigation into the
Company Li Weiwei and Zeng Kaitian. As of the date of this auditor’s report the Company has not yet received any definitive
conclusion or decision from the CSRC regarding the aforementioned matter under investigation. The contents of this paragraph are
without prejudice to the audit opinion that has been issued.IV Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
66statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole
and in forming our opinion thereon and we do not provide a separate opinion on these matters.(I) Revenue recognition
1. Description
As described in Notes III – (XXX) Revenue and V – (XL) Operating Revenue and Cost of Sales" the Company is mainly engaged in
the R&D and (independent and joint) operation of online games. The operation of online games depends highly on internal control
and IT system leading to inherent risk in revenue recognition so we highlighted the revenue recognition of online games as a key
audit matter.
2. Audit response
(1) The Company investigated and tested revenue-related internal controls and assessed the appropriateness of the key control
points of internal control and the effectiveness of the operation of internal controls.
(2) The Company performed IT audit. The consistency between the background recharge amount and consumption amount of
substantial self-developed games and the financial information was tested. The exactness of the consumption amount of ingots at
period end was verified. Game operation data such as average number of online users number of paying uses and average
consumption amount per user were checked for their consistency with revenue data.
(3) The Company checked the accuracy of revenue accounting and estimate. To align the accounting process with the time
cycle of reconciliation or settlement and follow the accrual basis of accounting the Company makes revenue estimates based on
the recharge amount and the agreed revenue distribution scheme or the actual consumption amount at month end and adjusts the
revenue estimates according to the actually settled revenues; thus the accuracy of revenue estimates directly influences the
accuracy of revenue recognition. The accuracy of revenue estimates was assessed by sampling major games and checking the
estimated monthly or annual revenues of these sampled games against the settled revenues in terms of the average discrepancy
between the estimated and settled revenues.
(4) The Company checked the collection of accounts receivable from sales. Third-party collections/payments or bank deposit
receipts were checked focusing on the consistency between the original documents and book records in terms of the recipient and
amount of payment.
(5) The Company performed follow-up test. A follow up test was conducted on accounts receivable to check whether they
were collected in time and whether there were chargebacks to customers. Period-end estimated revenues were checked against
revenues settled after the Reporting Period for assessing the existence of major discrepancies between the estimated and actually
settled revenues.(II) Internet traffic fee charges
1. Description
As described in Note V–(XLII) Distribution and Selling Expenses the Internet traffic fee charges in the 2024 consolidated
financial statements amount to RMB9151millon. Because Internet traffic fee charges amount to a substantial amount and there is
inherent risk in terms of their exactness and accuracy we highlighted the exactness and accuracy of Internet traffic charges as a key
audit matter.
2. Audit response
The major audit procedures performed to address the exactness and accuracy of Internet traffic fee charges include:
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
67(1) We investigated and tested Internet traffic fee charges-related internal controls and assessed the effectiveness of the design
and operation of relevant internal controls;
(2) We performed an analytical review to comparatively analyze the proportion of and variation in the monthly Internet traffic
fee charges and assess the appropriateness of the variation;
(3) We performed a detail test on Internet traffic charges by checking the supporting documents of large vouchers such as
contracts invoices bills of payment and statements of accounts and reviewing the accuracy of such charges;
(4) We performed external confirmations by checking the amounts of transactions and the balance of the accounts
payable/receivable between the Company and its major suppliers and verifying the exactness and completeness of distribution and
selling expenses through letters of confirmation;
(5) We performed a cut-off test on the Internet traffic fee charges recognized before and after the date of balance sheet
focusing on whether there are major inter-period adjustments.V Other Information
The Company’s management is responsible for the other information. The other information comprises all of the information
included in the Company’s 2024 Annual Report other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other information we are
required to report that fact. We have nothing to report in this regard.VI Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair view in accordance
with CAS and for designing implementing and maintaining such internal control as the management determines is necessary to
enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to continue as a
going concern disclosing going concern-related matters (if applicable) and using the going concern basis of accounting unless the
management either intends to liquidate the Company or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VII Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with CAS will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the
aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
68As part of an audit in accordance with CAS we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as
fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and based on the
audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by CAS to
draw users’ attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.However future events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Company to express an opinion on the financial statements. We are responsible for the direction supervision and performance
of the Company audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the
audit and significant audit findings including any noteworthy deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely
rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by 37 Interactive Entertainment Network Technology Group Co. Ltd.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
6931 December 2024
Unit: RMB
Item 31 December 2024 1 January 2024
Current assets:
Monetary funds 5058893098.76 6176992875.55
Transaction settlement funds
Loans to other banks
Trading financial assets 2249440497.59 2024681502.03
Derivative financial assets
Notes receivable
Accounts receivable 1212667677.20 1479267695.67
Accounts receivable financing
Prepayments 729588626.88 1143237497.90
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 42840109.04 46247241.46
Including: Interest receivable
Dividends receivable 12782059.51 10000000.00
Redemptory monetary capital for
sale
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
923069692.33164307298.27
year
Other current assets 118850219.61 88085256.86
Total current assets 10335349921.41 11122819367.74
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 446322435.18 520735613.55
Other equity investments 217022972.20 247132794.34
Other non-current financial assets 1037418816.34 825660687.40
Investment properties 689233033.12
Fixed assets 1076644793.81 823508284.60
Construction in progress 534491192.20
Productive living assets
Oil and gas assets
Right-of-use assets 6566577.29 16622471.20
Intangible assets 1888794105.85 1040204870.96
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 1578065048.53 1578065048.53
Long-term deferred expenses 66733610.79 90785937.93
Deferred income tax assets 44668879.75 53947130.48
Other non-current assets 2195871744.13 2280577680.43
Total non-current assets 9247342016.99 8011731711.62
Total assets 19582691938.40 19134551079.36
Current liabilities:
Short-term loans 2653781111.11 1554577083.34
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
70Loans from the central bank
Loans from other banks
Trading financial liabilities 8743696.60 74311.41
Derivative financial liabilities
Notes payable 1044500000.00 1087000000.00
Accounts payable 1667812211.58 1825714480.74
Advances from customers 362116.34 0.00
Contract liabilities 244227089.06 280023602.87
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 384954362.43 408786174.15
Taxes payable 200043621.99 280471436.39
Other payables 200414366.22 201521074.52
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within
5085969.06212167632.34
one year
Other current liabilities 49219418.15 55277993.63
Total current liabilities 6459143962.54 5905613789.39
Non-current liabilities:
Insurance contract reserve
Long-term loans 306000000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 1528614.88 3944589.05
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 105413115.53 106630292.58
Other non-current liabilities
Total non-current liabilities 106941730.41 416574881.63
Total liabilities 6566085692.95 6322188671.02
Shareholders' equity:
Share capital 2217864281.00 2217864281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2678529816.16 2823040832.04
Less: Treasury shares 401229096.75 300524656.78
Other comprehensive income -119674167.70 -129511563.25
Special reserves
Surplus reserves 666869940.33 666869940.33
General risk reserves
Retained earnings 7878369071.34 7429206642.53
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
71Total equity attributable to shareholders
12920729844.3812706945475.87
of the Company
Non-controlling interests 95876401.07 105416932.47
Total shareholders' equity 13016606245.45 12812362408.34
Total liabilities and shareholders’ equity 19582691938.40 19134551079.36
Legal representative: Xu Zhigao Chief Financial Officer: Ye Wei Board Secretary: Ye Wei
2. Balance Sheet of the Company
Unit: RMB
Item 31 December 2024 1 January 2024
Current assets:
Monetary funds 45010430.49 802609416.49
Trading financial assets 1472922373.98 800986301.37
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 299511.91 66418.86
Other receivables 2067993087.97 3679202452.33
Including: Interest receivable
Dividends receivable
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 8185040.85 7068190.52
Total current assets 3594410445.20 5289932779.57
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 9561797839.35 9659679501.59
Other equity investments
Other non-current financial assets 80738178.41 76589599.00
Investment properties
Fixed assets
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 2479663.50 4605089.46
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets 9230406.43
Other non-current assets
Total non-current assets 9654246087.69 9740874190.05
Total assets 13248656532.89 15030806969.62
Current liabilities:
Short-term loans 400281111.11 200155833.34
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
72Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1713740.20
Advances from customers
Contract liabilities
Employee benefits payable 28060.00 30200.00
Taxes payable 17739439.95 11281109.24
Other payables 32866010.91 28901705.53
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within
2552367.41200318482.28
one year
Other current liabilities
Total current liabilities 455180729.58 440687330.39
Non-current liabilities:
Long-term loans 306000000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2552367.43
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 142444.51
Other non-current liabilities
Total non-current liabilities 308694811.94
Total liabilities 455180729.58 749382142.33
Shareholders' equity:
Share capital 2217864281.00 2217864281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 6345690695.32 6468587957.50
Less: Treasury shares 401229096.75 300524656.78
Other comprehensive income -60000000.00
Special reserves
Surplus reserves 1108932140.50 1108932140.50
Retained earnings 3522217783.24 4846565105.07
Total shareholders' equity 12793475803.31 14281424827.29
Total liabilities and shareholders’ equity 13248656532.89 15030806969.62
3. Consolidated Income Statement
Unit: RMB
Item 2024 2023
1. Total operating revenue 17440957495.58 16546871737.85
Including: Operating revenue 17440957495.58 16546871737.85
Interest income
Premium income
Handling charge and
commission income
2. Total operating costs and expenses 14483511016.90 13603488187.84
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
73Including: Cost of sales 3726548784.98 3391580579.32
Interest expense
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount provided as
policy reserve
Expenditure on policy
dividends
Reinsurance premium
expenses
Taxes and surcharges 44113070.92 36892301.48
Distribution and selling
9712300686.999090808791.22
expenses
General and
515515048.85592119581.61
administrative expenses
Research and
646356784.55713563181.73
development expenses
Financial expenses -161323359.39 -221476247.52
Including: Interest
63965623.9465589638.61
expense
Interest
239018996.99306044467.16
income
Add: Other income 88261430.73 110038707.84
Investment income (“-” for
111101221.067525623.19
loss)
Including: Share of profits and
-9114042.59-17776565.55
losses of joint ventures and associates
Gain on derecognition
of financial assets measured at
amortized cost (“-” for loss)
Gain on exchange (“-” for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
-31087890.91103982672.05
(“-” for loss)
Impairment loss on credit (“-”
20706759.60-13743024.22
for loss)
Impairment loss on assets (“-”
-56171665.31-111730846.28
for loss)
Gain on disposal of assets (“-”
747990.041431156.84
for loss)
3. Operating profit (“-” for loss) 3091004323.89 3040887839.43
Add: Non-operating income 4377488.74 20123970.73
Less: Non-operating expenses 6589589.85 13041071.75
4. Profit before income tax expenses (“-”
3088792222.783047970738.41
for loss)
Less: Income tax expenses 424491264.41 414443596.24
5. Net profit (“-” for net loss) 2664300958.37 2633527142.17
5.1 Classified by continuity of
operations
5.1.1 Net profit from continuing
2664300958.372633527142.17
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 Classified by ownership of the
equity
5.2.1 Net profit attributable to
2673021327.302658570193.44
shareholders of the Company
5.2.2 Net profit attributable to non- -8720368.93 -25043051.27
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
74controlling interests
6. Other comprehensive income net of
9837395.5523533183.20
tax
Other comprehensive income
attributable to shareholders of the 9837395.55 23533183.20
Company net of tax
6.1 Other comprehensive income
that will not be reclassified subsequently -5236043.48 -23571778.91
to profit or loss
6.1.1 Changes caused by
remeasurement of defined benefit
pension schemes
6.1.2 Share of the other
comprehensive income of the investee
accounted for using equity method that
will not be reclassified subsequently to
profit or loss
6.1.3 Changes in fair value of
-5236043.48-23571778.91
other equity investments
6.1.4 Changes in the fair value of
the company's own credit risk
6.1.5 Others
6.2 Other comprehensive income
that will be reclassified subsequently to 15073439.03 47104962.11
profit or loss
6.2.1 Share of the other
comprehensive income of the investee
accounted for using equity method that -1271767.54 0.00
will be reclassified subsequently to profit
or loss
6.2.2 Changes in fair value of
other equity investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Allowance for credit
impairments in other debt investments
6.2.5 Cash flow hedge reserve
6.2.6 Exchange differences on
translation of foreign currency financial 16345206.57 47104962.11
statements
6.2.7 Others
Other comprehensive income
attributable to non-controlling interests
net of tax
7. Total comprehensive income 2674138353.92 2657060325.37
Total comprehensive income
attributable to shareholders of the 2682858722.85 2682103376.64
Company
Total comprehensive income
-8720368.93-25043051.27
attributable to non-controlling interests
8. Earnings per share:
8.1 Basic earnings per share 1.21 1.20
8.2 Diluted earnings per share 1.21 1.20
Where business combinations under common control occurred in the current period the net profit achieved by the acquirees
before the combinations was RMB 0.00 with the amount for the same period of last year being RMB 0.00.Legal representative: Xu Zhigao Chief Financial Officer: Ye Wei Board Secretary: Ye Wei
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
754. Income Statement of the Company
Unit: RMB
Item 2024 2023
1. Operating revenue 0.00 9433.96
Less: Cost of sales 0.00 0.00
Taxes and surcharges 32439.32 50349.85
Distribution and selling
expenses
General and administrative
7233016.1919286684.94
expenses
Research and development
expenses
Financial expenses 8833921.68 1373974.08
Including: Interest expense 16050038.22 23604095.16
Interest income 8529008.58 23391950.84
Add: Other income 7932182.75 6938175.62
Investments income (“-” for
904917055.111704272876.72
loss)
Including: Share of profits
and losses of joint ventures and
associates
Gain on
derecognition of financial assets
measured at amortized cost (“-” for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
27364378.0718294520.55
(“-” for loss)
Impairment loss on credit (“-”
for loss)
Impairment loss on assets (“-”
for loss)
Gain on disposal of assets (“-”
for loss)
2. Operating profit (“-” for loss) 924114238.74 1708803997.98
Add: Non-operating income 169747.52 1478.73
Less: Non-operating expenses 20001.80 70214.21
3. Profit before income tax expenses (“-”
924263984.461708735262.50
for loss)
Less: Income tax expenses -9308957.40 2444671.89
4. Net profit (“-” for net loss) 933572941.86 1706290590.61
4.1 Net profit from continuing
933572941.861706290590.61
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
60000000.00
tax
5.1 Other comprehensive income
that will not be reclassified subsequently 60000000.00
to profit or loss
5.1.1 Changes caused by
remeasurement of defined benefit
pension schemes
5.1.2 Share of the other
comprehensive income of the investee
accounted for using equity method that
will not be reclassified subsequently to
profit or loss
5.1.3 Changes in fair value of 60000000.00
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
76other equity investments
5.1.4 Changes in the fair value of
the company's own credit risk
5.1.5 Others
5.2 Other comprehensive income
that will be reclassified subsequently to
profit or loss
5.2.1 Share of the other
comprehensive income of the investee
accounted for using equity method that
will be reclassified subsequently to profit
or loss
5.2.2 Changes in fair value of
other equity investments
5.2.3 Other comprehensive
income arising from the reclassification
of financial assets
5.2.4 Allowance for credit
impairments in other debt investments
5.2.5 Cash flow hedge reserve
5.2.6 Exchange differences on
translation of foreign currency financial
statements
5.2.7 Others
6. Total comprehensive income 993572941.86 1706290590.61
7. Earnings per share:
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2024 2023
1. Cash flows from operating activities:
Cash received from the sales of
18041887158.3416904176555.70
goods or rendering services
Net increase in customer deposits
and interbank deposits
Net increase in loans from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest handling charges and
commissions received
Net increase in loans from other
banks
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Refunds of taxes and levies 1496678.61 2434967.58
Cash received relating to other
228227785.73265105348.27
operating activities
Sub-total of cash inflows from operating 18271611622.68 17171716871.55
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
77activities
Cash paid for purchases of goods
3476808553.683413825692.72
and services
Net increase in loans and advances
to customers
Net increase in deposits in the
central bank and other banks and
financial institutions
Payments for claims on original
insurance contracts
Net increase in loans to other banks
Interest handling charges and
commissions paid
Policy dividends paid
Cash paid to and on behalf of
1538242844.531564676531.31
employees
Payments of taxes and levies 661817095.26 645283417.51
Cash paid relating to other
9596760446.488400893893.55
operating activities
Sub-total of cash outflows used in
15273628939.9514024679535.09
operating activities
Net cash flows from operating activities 2997982682.73 3147037336.46
2. Cash flows from investing activities:
Cash received from disposal of
163197797.31150435928.42
investments
Cash received from investment
278211511.91172415699.41
income
Cash received from disposal of fixed
assets intangible assets and other long- 486551.68 3105437.71
term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other
16600856701.5813521693807.84
investing activities
Sub-total of cash inflows from investing
17042752562.4813847650873.38
activities
Cash paid for acquisition of fixed
assets intangible assets and other long- 572301836.19 1311950763.69
term assets
Cash paid to acquire investments 467246072.26 237738371.40
Net increase in pledged loans
granted
Net cash paid for the acquisition of
49991.0659324.28
subsidiaries and other business units
Cash paid relating to other investing
19411351287.0913743826640.43
activities
Sub-total of cash outflows used in
20450949186.6015293575099.80
investing activities
Net cash flows from/used in investing
-3408196624.12-1445924226.42
activities
3. Cash flows from financing activities:
Cash received from capital
620000.00
contributions
Including: Cash received from
capital contributions by non-controlling 620000.00
interests of subsidiaries
Cash received from borrowings 4210500000.00 2911380000.00
Cash received relating to other
1019805900.00355000000.00
financing activities
Sub-total of cash inflows from financing
5230305900.003267000000.00
activities
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
78Cash repayments of borrowings 3614880000.00 2104998000.00
Cash paid for interest and dividends 2266059806.20 2052191844.69
Including: Dividends paid by
2663518.82
subsidiaries to non-controlling interests
Cash paid relating to other
142038995.941396209021.10
financing activities
Sub-total of cash outflows used in
6022978802.145553398865.79
financing activities
Net cash flows from/used in financing
-792672902.14-2286398865.79
activities
4. Effect of foreign exchange rate
2911377.3110295383.63
changes on cash and cash equivalents
5. Net increase/decrease in cash and
-1199975466.22-574990372.12
cash equivalents
Add: Cash and cash equivalents at
2745481726.823320472098.94
beginning of the period
6. Cash and cash equivalents at end of
1545506260.602745481726.82
the period
6. Cash Flow Statement of the Company
Unit: RMB
Item 2024 2023
1. Cash flows from operating activities:
Cash received from the sales of
10000.00
goods or rendering services
Refunds of taxes and levies
Cash received relating to other
3493756316.892866152757.49
operating activities
Sub-total of cash inflows from operating
3493756316.892866162757.49
activities
Cash paid for purchases of goods
and services
Cash paid to and on behalf of
4854285.701939875.23
employees
Payments of taxes and levies 2809328.25 4280167.75
Cash paid relating to other
1858456849.482710211734.70
operating activities
Sub-total of cash outflows used in
1866120463.432716431777.68
operating activities
Net cash flows from/used in operating
1627635853.46149730979.81
activities
2. Cash flows from investing activities:
Cash received from disposal of
1777870.31
investments
Cash received from investment
930843031.161737876392.74
income
Cash received from disposal of fixed
assets intangible assets and other long-
term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other
5625000000.004580000000.00
investing activities
Sub-total of cash inflows from investing
6557620901.476317876392.74
activities
Cash paid for acquisition of fixed
assets intangible assets and other long-
term assets
Cash paid to acquire investments 22000000.00 15000000.00
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
79Net cash paid for the acquisition of
subsidiaries and other business units
Cash paid relating to other investing
5995000000.004280000000.00
activities
Sub-total of cash outflows used in
6017000000.004295000000.00
investing activities
Net cash flows from/used in investing
540620901.472022876392.74
activities
3. Cash flows from financing activities:
Cash received from capital
contributions
Cash received from borrowings 700000000.00 690000000.00
Cash received relating to other
financing activities
Sub-total of cash inflows from financing
700000000.00690000000.00
activities
Cash repayments of borrowings 1003500000.00 337000000.00
Cash paid for interest and dividends 2215857743.73 2011301921.19
Cash paid relating to other
103520599.97220234866.23
financing activities
Sub-total of cash outflows used in
3322878343.702568536787.42
financing activities
Net cash flows from/used in financing
-2622878343.70-1878536787.42
activities
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase/decrease in cash and
-454621588.77294070585.13
cash equivalents
Add: Cash and cash equivalents at
499632019.26205561434.13
beginning of the period
6. Cash and cash equivalents at end of
45010430.49499632019.26
the period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
807. Consolidated Statement of Changes in Shareholders’ Equity
2024
Unit: RMB
2024
Equity attributable to shareholders of the Company
Item Other equity instruments Genera Non- Total Less: Other Special Ot
Capital Surplus l risk Retained controllin shareholder
Share capital Preferre Perpetu Oth Treasury comprehensive reserve he Sub-total reserves reserves reserve earnings g interests s' equity
d shares al bonds ers shares income s rs s
-
1. Balance as at the 221786428 2823040 300524 666869 74292066 12706945 1054169 12812362
129511563.2
end of prior year 1.00 832.04 656.78 940.33 42.53 475.87 32.47 408.34
5
Add: Adjustments
for changed
accounting policies
Adjustments
for corrections of
previous errors
Others
-
2. Balance as at 221786428 2823040 300524 666869 74292066 12706945 1054169 12812362
129511563.2
beginning of year 1.00 832.04 656.78 940.33 42.53 475.87 32.47 408.34
5
3. Increase/
--
decrease in the 100704 449162428 213784368 204243837
14451109837395.559540531
period (“-” for 439.97 .81 .51 .11
15.88.40
decrease)
3.1 Total -
267302132658697926499775
comprehensive -14323411.45 8720368
27.3015.8546.92
income .93
3.2 Capital
---
contribution and 100704 1843356
14451100.00245215455243372099
withdrawal by 439.97 .35
15.88.85.50
shareholders
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
813.2.1 Common
--
shares contribution
244274524427451.
and withdrawal by
1.0000
shareholders
3.2.2 Capital
contribution and
withdrawal by
holders of other
equity instruments
3.2.3 Share-based
---
payments included
122987012298706089797.86122897262
in shareholders’
60.04.04.18
equity
---
1007042618100
3.2.4 Others 2152395 122228395 96047386.
439.979.49
5.84.8132
----
3.3 Profit
2199698121996981266351822023616
distribution
34.0034.00.8252.82
3.3.1 Appropriation
to surplus reserves
3.3.2 Appropriation
to general risk
reserves
----
3.3.3 Distribution to
2199698121996981266351822023616
shareholders
34.0034.00.8252.82
3.3.4 Others
3.4 Internal -
transfers within 24160807.00 24160807.shareholders’ equity 00
3.4.1 Capital
reserves transferred
into capital (or
share capital)
3.4.2 Surplus
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
82reserves transferred
into capital (or
share capital)
3.4.3 Surplus
reserves for making
up losses
3.4.4 Changes in
defined benefit
pension schemes
transferred into
retained earnings
3.4.5 Other
comprehensive -
income transferred 24160807.00 24160807.into retained 00
earnings
3.4.6 Others
3.5 Special reserves
3.5.1 Increase in the
period
3.5.2 Used in the
period
3.6 Others 42.51 42.51 42.51
-
4. Balance as at the 221786428 2678529 401229 666869 78783690 12920729 9587640 13016606
119674167.7
end of the period 1.00 816.16 096.75 940.33 71.34 844.38 1.07 245.45
0
2023
Unit: RMB
2023
Equity attributable to shareholders of the Company
Item Non- Total Other equity instruments Less: Other Special General
Capital Surplus Retained Oth controllin shareholder
Share capital Preferre Perpetua Oth Treasury comprehensi reserve risk Sub-total reserves reserves earnings ers g interests s' equity
d shares l bonds ers shares ve income s reserves
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
83-
1. Balance as at the 221786428 2776585 831059 666869 6758838 12184007 1285974 12312605
153044746.
end of prior year 1.00 669.95 50.55 940.33 410.54 604.82 99.21 104.03
45
Add: Adjustments
for changed
accounting policies
Adjustments
for corrections of
previous errors
Others
-
2. Balance as at 221786428 2776585 831059 666869 6758838 12184007 1285974 12312605
153044746.
beginning of year 1.00 669.95 50.55 940.33 410.54 604.82 99.21 104.03
45
3. Increase/
-
decrease in the 4645516 217418 23533183.2 67036823 522937871 499757304
2318056
period (“-” for 2.09 706.23 0 1.99 .05 .31
6.74
decrease)
3.1 Total -
23533183.226585702682103326570603
comprehensive 2504305
0193.4476.6425.37
income 1.27
3.2 Capital
--
contribution and 4669019 217418 1847283
170728506168881222
withdrawal by 9.89 706.23 .95.34.39
shareholders
3.2.1 Common
shares contribution 1719479 1719479.9
and withdrawal by .94 4
shareholders
3.2.2 Capital
contribution and
withdrawal by
holders of other
equity instruments
3.2.3 Share-based
466901946690199.127804.046818003.
payments included
9.8989190
in shareholders’
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
84equity
--
217418
3.2.4 Others 217418706 217418706
706.23.23.23
---
3.3 Profit
19882011988201919882019
distribution
961.4561.4561.45
3.3.1 Appropriation
to surplus reserves
3.3.2 Appropriation
to general risk
reserves
---
3.3.3 Distribution to
19882011988201919882019
shareholders
961.4561.4561.45
3.3.4 Others
3.4 Internal
transfers within
shareholders’
equity
3.4.1 Capital
reserves transferred
into capital (or
share capital)
3.4.2 Surplus
reserves transferred
into capital (or
share capital)
3.4.3 Surplus
reserves for making
up losses
3.4.4 Changes in
defined benefit
pension schemes
transferred into
retained earnings
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
853.4.5 Other
comprehensive
income transferred
into retained
earnings
3.4.6 Others
3.5 Special reserves
3.5.1 Increase in
the period
3.5.2 Used in the
period
-
3.6 Others 235037.8 -235037.80 15200.58 -219837.22
0
-
4. Balance as at the 221786428 2823040 300524 666869 7429206 12706945 1054169 12812362
129511563.
end of the period 1.00 832.04 656.78 940.33 642.53 475.87 32.47 408.34
25
8. Statement of Changes in Shareholders’ Equity of the Company
2024
Unit: RMB
2024
Other equity instruments
Item Other Special Less: Treasury Retained Oth Total shareholders'
Share capital Preferre Perpetu Oth Capital reserves comprehensiv reserve Surplus reserves shares earnings ers equity
d shares al bonds ers e income s
1. Balance as at
the end of prior 2217864281.00 6468587957.50 300524656.78 -60000000.00 1108932140.50 4846565105.07 14281424827.29
year
Add: Adjustments
for changed
accounting
policies
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
86Adjustments
for corrections of
previous errors
Others
2. Balance as at
2217864281.006468587957.50300524656.78-60000000.001108932140.504846565105.0714281424827.29
beginning of year
3. Increase/
decrease in the -
-122897262.18100704439.9760000000.00-1487949023.98
period (“-” for 1324347321.83
decrease)
3.1 Total
comprehensive 933572941.86 933572941.86
income
3.2 Capital
contribution and
-122897262.18100704439.97-223601702.15
withdrawal by
shareholders
3.2.1 Common
shares
contribution and
withdrawal by
shareholders
3.2.2 Capital
contribution and
withdrawal by
holders of other
equity
instruments
3.2.3 Share-based
payments
included in -122897262.18 -122897262.18
shareholders’
equity
3.2.4 Others 100704439.97 -100704439.97
3.3 Profit -
-2199698134.00
distribution 2199698134.00
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
873.3.1
Appropriation to
surplus reserves
3.3.2 Distribution -
-2199698134.00
to shareholders 2199698134.00
3.3.3 Others
3.4 Internal
transfers within
60000000.00-60000000.00
shareholders’
equity
3.4.1 Capital
reserves
transferred into
capital (or share
capital)
3.4.2 Surplus
reserves
transferred into
capital (or share
capital)
3.4.3 Surplus
reserves for
making up losses
3.4.4 Changes in
defined benefit
pension schemes
transferred into
retained earnings
3.4.5 Other
comprehensive
income 60000000.00 -60000000.00
transferred into
retained earnings
3.4.6 Others
3.5 Special
reserves
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
883.5.1 Increase in
the period
3.5.2 Used in the
period
3.6 Others 1777870.31 1777870.31
4. Balance as at
the end of the 2217864281.00 6345690695.32 401229096.75 1108932140.50 3522217783.24 12793475803.31
period
2023
Unit: RMB
2023
Other equity instruments
Item Other Special OtLess: Treasury Total shareholders'
Share capital Preferre Perpetua Oth Capital reserves comprehensive reserve Surplus reserves Retained earnings hershares equity
d shares l bonds ers income s s
1. Balance as at the
2217864281.006421769953.6083105950.55-60000000.001108932140.505128476475.9114733936900.46
end of prior year
Add: Adjustments
for changed
accounting policies
Adjustments
for corrections of
previous errors
Others
2. Balance as at
2217864281.006421769953.6083105950.55-60000000.001108932140.505128476475.9114733936900.46
beginning of year
3. Increase/
decrease in the
46818003.90217418706.23-281911370.84-452512073.17
period (“-” for
decrease)
3.1 Total
comprehensive 1706290590.61 1706290590.61
income
3.2 Capital 46818003.90 217418706.23 -170600702.33
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
89contribution and
withdrawal by
shareholders
3.2.1 Common
shares contribution
and withdrawal by
shareholders
3.2.2 Capital
contribution and
withdrawal by
holders of other
equity instruments
3.2.3 Share-based
payments included
46818003.9046818003.90
in shareholders’
equity
3.2.4 Others 217418706.23 -217418706.23
3.3 Profit
-1988201961.45-1988201961.45
distribution
3.3.1 Appropriation
to surplus reserves
3.3.2 Distribution to
-1988201961.45-1988201961.45
shareholders
3.3.3 Others
3.4 Internal
transfers within
shareholders’
equity
3.4.1 Capital
reserves
transferred into
capital (or share
capital)
3.4.2 Surplus
reserves
transferred into
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
90capital (or share
capital)
3.4.3 Surplus
reserves for making
up losses
3.4.4 Changes in
defined benefit
pension schemes
transferred into
retained earnings
3.4.5 Other
comprehensive
income transferred
into retained
earnings
3.4.6 Others
3.5 Special reserves
3.5.1 Increase in
the period
3.5.2 Used in the
period
3.6 Others
4. Balance as at the
2217864281.006468587957.50300524656.78-60000000.001108932140.504846565105.0714281424827.29
end of the period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
91
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