游族网络:2019年半年度报告摘要(英文版)

                                                               Summary of the 2019 Semi-annual Report of YOOZOO Games Co., Ltd.



Securities Code: 002174                 Securities Abbreviation: YOOZOO Games                            Announcement Number:2019-070


Summary of the 2019 Semi-annual Report of YOOZOO Games Co., Ltd.

I. Important Tip

The summary of this semi-annual report comes from the full text of the annual report. To fully understand the Company’s operating

results, financial situation and future development plan, investors should read the full text of the semi-annual report carefully in the

media designated by the China Securities Regulatory Commission (CSRC).

Statement of Dissension by Directors, Supervisors and Senior Management

                     Name                                      Title                                Content and Reason

Statement

Other than the following directors, the other directors personally attended the Board of Directors meeting to review the semi-annual

report

 Name of director not present in       Title of director not present in      Reasons for not attending the          Name of authorized

              person                               person                            meeting in person                representative

Non-standard Audit Opinion Prompt

□ Applicable √ Not applicable

Preplan for the distribution of common stock profits during the reporting period considered by the Board of Directors or the preplan

for the transfer of capital stock from the accumulation fund

□ Applicable √ Not applicable

The Company plans not to distribute cash dividends, send bonus shares, and transfer of capital stock from the accumulation fund.

Preplan for profit distribution of preferred stock in this reporting period adopted by the resolution of the Board of Directors

□ Applicable √ Not applicable




II. Basic Information of the Company

1. Company profile


Stock abbreviation                                  YOOZOO Games          Stock code                       002174

Stock exchange                                   Shenzhen Stock Exchange

    Contact person and contact information                  Secretary of the Board                 Securities affairs representative

Name                                             Xu Bin                                      Zhu Mengjing
                                                              Summary of the 2019 Semi-annual Report of YOOZOO Games Co., Ltd.



                                                Building 2, Huaxin Business Center,       Building 2, Huaxin Business Center, 711

Address                                         711 Yishan Rd., Xuhui District,           Yishan Rd., Xuhui District, Shanghai,

                                                Shanghai, China                           China

Tel.                                            021-33671551                              021-33671551

E-mail                                          ir@yoozoo.com                             ir@yoozoo.com

2. Major accounting data and financial indicators

Whether the Company needs to retroactively adjust or restate previous accounting data

□ Yes √ No

                                                                                                          The same period of 2018
                                                                                                         increase/decrease of current
                                              Current reporting period       Same period of 2018
                                                                                                              reporting period
                                                                                                                year-on-year

Operating income (RMB)                       1,729,874,938.24             1,786,787,310.70             -3.19%

Net profits attributable to the listed
                                             407,064,873.82               492,986,038.73               -17.43%
company shareholders (RMB)
Net profits attributable to listed company
shareholders after deducting non-recurring 316,513,584.56                 379,496,221.86               -16.60%
profits and losses (RMB)
Net cash flows from operating activities
                                             64,188,501.70                13,720,839.94                367.82%
(RMB)

Basic earning per share (Yuan/share)         0.47                         0.56                         -16.07%


Diluted earning per share (Yuan/share)       0.47                         0.56                         -16.07%


Weighted average rate of return on equity    8.55%                        12.05%                       -3.50%

                                                                                                              The end of 2018
                                               End of current reporting                                 increase/decrease of the end
                                                                                   End of 2018
                                                         period                                          of current reporting period
                                                                                                                year-on-year

Total assets (RMB)                           8,147,686,482.16             7,332,575,255.04             11.12%

Net assets attributable to the listed
                                             5,017,048,716.91             4,509,617,206.26             11.25%
company shareholders (RMB)


3. The number of shareholders and the shareholding situation

                                                                                                                           Unit: share
       The total number of common                                     The total number of preferred
                                                    35,270                                                           0
       shareholders at the end of the                                  shareholders recovered from
                                                              Summary of the 2019 Semi-annual Report of YOOZOO Games Co., Ltd.


          reporting period                                              the voting rights at the end of
                                                                         the reporting period (if any)
                                            Shareholding situation of the top 10 shareholders
                                                                                                            Condition of pledge or
   Name of             Nature of       Shareholding    Quantity of       Number of shares holding
                                                                                                                     freezing
 shareholders         shareholders         ratio       shareholding      restricted sales conditions
                                                                                                          Stock status      Quantity
                    Domestic natural
    Lin Qi                                34.84%       309,536,169              232,152,127                 Pledge        280,755,807
                        person
Ningbo Bonded
                       Domestic
 Area Yongxie
                    non-state-owned        5.99%       53,258,072                    0
 International
                      legal person
Trade Co., Ltd.
                    Domestic natural
Wang Qingwei                               3.98%       35,378,319                    0
                        person
   Guosheng            Domestic
Securities Co., non-state-owned            3.70%       32,869,708                    0
      Ltd.            legal person
                    Domestic natural
Wang Qingyong                              3.65%       32,438,319                    0
                        person
                    Domestic natural
   Ma Xinqi                                1.83%       16,225,715                    0
                        person
   YOOZOO
Games Co., Ltd.
                       Domestic
- the first phase
                    non-state-owned        1.80%       15,994,290                    0
of the employee
                      legal person
stock ownership
      plan
                    Domestic natural
 Zhang Yunlei                              1.75%       15,515,905                    0                      Pledge         14,570,000
                        person
                    Domestic natural
 Zhu Songwei                               1.56%       13,863,490                    0                      Pledge         10,786,491
                        person
Industrial Bank
   Co., Ltd. -
Xingquan Trend
                       Domestic
  Investment
                    non-state-owned        1.26%       11,219,621                    0
    Hybrid
                      legal person
   Securities
  Investment
  Fund (LOF)
Explanation of the                     Mr. Wang Qingyong and Mr. Wang Qingwei are brothers and they are persons acting in
above-mentioned                        concert. It is not known whether there is a relationship among the other shareholders mentioned
shareholder-related relationship or above, or whether they belong to the co-actors specified in the Measures for the Administration
concerted action                       of Information Disclosure of Changes in Shareholders Shareholding in Listed Companies.
                                                              Summary of the 2019 Semi-annual Report of YOOZOO Games Co., Ltd.



4. Change condition of controlling shareholders and actual controllers

Change in the controlling shareholders in the reporting period

□ Applicable √ Not applicable

No change in the controlling shareholder of the Company in the reporting period.

Change in the actual controllers in the reporting period

□ Applicable √ Not applicable

No change in actual controllers of the Company in the reporting period

5. Table of the total number of preferred stock shareholders and the shareholding situation of the top 10
preferred stock shareholders of the Company

□ Applicable √ Not applicable

The Company does not have the shareholding situation of preferred stock shareholder during the reporting period.

6. Corporation bonds

Whether there is a company publicly issued and listed on the stock exchange, and the corporation bonds that have not expired or

expired in full on the date of approval of the semi-annual report

No.


III. Discussion and Analysis of Operation

1. Brief introduction to the operation during the reporting period

Whether the Company is required to comply with disclosure requirements for special industries

No.

YOOZOO Games focuses on the development, distribution and operation of mobile games and web games. As the leading interactive
entertainment provider in China, the Company adheres to the strategy of “Fit-For- Growth”, based on the three major directions of
“Transmedia IP”, “Elite Products” and “Globalization”, adheres to the corporate mission of “Share Simple Happiness”, and continues
to provide high-quality game products and services to global users, so as to enhance the player’s game experience.

Since its inception, the Company has focused on the R&D and operation of online games, and has continuously improved its R&D
and distribution capabilities in the course of development to enrich product lineups and expand product matrix. With the help of
boutique mobile games through independent R&D and agencies, the Company has formed a multi-category product matrix, the
mobile revenue accounting for 71.18%. The Company actively explores overseas markets; the proportion of overseas income has
further increased to 58.36% in virtue of Eastern and Western classic IPs integrating with regional operation and deep global
distribution system. At the same time, the Company further strengthens the sense of responsibility to perfect the Parent Monitoring
System; deeply explored the ideological concepts and humanistic spirit contained in the Chinese outstanding traditional culture to
enhance the cultural connotation of the products. In addition, the Company also launches the eco-friendly WeChat Mini Game
"Garbage Sorting" to raise public awareness of environmental protection and fulfill corporate responsibility. The company won the
"Annual Influential Game Company" award in the 2019 China Game Ceremony hosted by Xinhuanet and won the title of "Shanghai
                                                            Summary of the 2019 Semi-annual Report of YOOZOO Games Co., Ltd.


Civilized Unit" in the network communication system in 2017-2018 annual selection of Advanced Unit of Shanghai Spiritual
Civilization. The company has been selected for the sixth consecutive year in the Top 100 Internet list, which jointly released by the
Internet Society of China, the Network Security Industry Development Center of the Ministry of Industry and Information
Technology of the People's Republic of China.

During the reporting period, the Company achieved a total operating revenue of RMB1.73 billion, with a year-on-year decrease of
3.19%; of which mobile games realized revenues of RMB1.23 billion, accounting for71.18% of operating revenue, with a
year-on-year increase of 6.71%; operating revenue from overseas regions reached RMB1.01 billion, accounting for 58.36% of
operating revenue, with a year-on-year increase of 6.49%; a net profit attributable to the listed company shareholder of RMB0.41
billion, with a year-on-year decrease of 17.43%; As of the end of the reporting period, the total assets of the Company was RMB8.15
billion, with a year-on-year increase of 11.12%; the net assets attributable to listed company shareholders was RMB5.02 billion, with
a year-on-year increase of 11.25%.

In the past two years, the Company has actively arranged two lines of independent R&D and agency, and reserved a variety of
high-quality products. Relevant products have been successively introduced to the market since 2019. Agent products such as
female-oriented business development mobile game Go Manager (一直奔向月)to develop new game categories for the Company;
the Company bring domestic boutique games out of the country by cooperating with domestic leading game developers. During the
reporting period, the Rangers of Oblivion (猎魂觉醒)ARPG mobile game was launched in the Europe and America, the Saint Seiya:
Awakening (圣斗士星矢:觉醒) and Shendu Night (神都夜行录) were launched in Hong Kong, Macao and Taiwan region, and the
Saint Seiya Awakening: Knights of the Zodiac (圣斗士星矢:觉醒) was launched in the Southeast Asia region, which brought good
profits to the company. Among the independent R&D products, the Game of Thrones Winter is Coming (权力的游戏 凛冬将至) of
international version webpage game has launched overseas beta on March 26, 2019. It has been applied in 14 languages including
English, German, French and Portuguese, and has been recommended by Facebook for four times. The mobile game Game of
Thrones Winter is Coming (权力的游戏 凛冬将至) was also conducted several rounds of testing during the reporting period,
launched the non-deletion test on July 10, and won official recommendation by Apple App Store for many times.

In addition, the company continuously increases investment in independent R&D and agent products to subsequently reserve a variety
of games. The company will participate in the domestic distribution business of Supercell's Brawl Stars, which has received more
than 455,000 attentions and 8.9 points on TapTap. The cooperation demonstrates recognition on the company's distribution strength
by the international top game manufacturers. In addition, the company also has a sequel to Legacy of Discord-Furious Wings (狂暴
之翼)-- Legacy of Discord-Furious Wings II (狂暴之翼 2), which continues the fantasy 3D of the game, giving players a more
invigorating sense of combat and a better gaming experience; a number of high-quality works in the independent R&D products will
be launched in the future, including the Junior Three Kingdom II (少年三国志 2), Shanhai Jinghua (山海镜花), and the Junior Three
Kingdom Zero(少年三国志:零). Among them, Junior Three Kingdom II and Shanhai Jinghua (山海镜花) have been tested several
rounds, achieving good test results. Other independent R&D products such as The Graver Robbers' Chronicles (盗墓笔记) are
orderly under R&D. The company's follow-up product types are not only limited to existing advantageous products, but also cover
new category breakthroughs such as MOBA, ACG and ARPG. In the future, the company will gain good rewards and market
reputation through continuous high-quality products launching.

With the advent of the 5G era, the application of cloud games, AR, VR, AI and interactive technologies in games and the
improvement of the game experience will promote the growth of the game industry and become a new engine for the development of
the industry. The company joined the cloud game industry alliance (CGIA) jointly develop cutting-edge technologies, promote game
innovation and development, and actively deploy industry hotspots to enhance the company’s competitiveness.


2. Matters relating to financial reports
                                                            Summary of the 2019 Semi-annual Report of YOOZOO Games Co., Ltd.



(1) A statement of changes in accounting policies, accounting estimates and accounting methods compared

with the previous accounting period

□ Applicable √ Not applicable

There were no changes in accounting policies, accounting estimates and accounting methods during the Company reporting period.


(2)A description of the retrospective restatement of the correction of major accounting errors during the

reporting period

□ Applicable √ Not applicable


No major accounting errors during the reporting period need to be restated retrospectively.


(3) A description of the changes in the scope of the consolidated statements compared with the previous

accounting period

In June 2019, the Company transferred 58% of the equity of its wholly-owned subsidiary, Guangzhou MobTech Co., Ltd. to the

associated natural person. This company began to withdraw from the consolidated statement from June 2019.

关闭窗口