Network Technology Group Co., Ltd.
April 2026
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”) as well as the directors 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.
Zeng Kaitian, the Company’s legal representative, and Ye Wei, the
Company’s person-in-charge of accounting & head of the accounting
department, hereby guarantee that the financial statements carried in this Report
are truthful, accurate and complete.
All the Company’s directors have attended the Board meeting for the review
of this Report.
Any plans 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 RMB4.00 (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.
Table of Contents
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Part 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
三七互娱网络科技集团股份有限公司
Chinese
Abbr. 三七互娱
Company name in
English (if any)
Legal representative Zeng Kaitian
Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang Road, Wuhu City,
Registered address
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
Change of registered
Park, Middle Beijing Road, Jiujiang District, Wuhu City, Anhui Province” to “Room
address
Province” on 31 March 2022.
Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang Road, Wuhu City,
Office address
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 Wang Sijie Wang Sijie
Room 7001, 7/F, Tower B1, Wanjiang Room 7001, 7/F, Tower B1, Wanjiang
Office address Fortune Plaza, 88 Ruixiang Road, Fortune Plaza, 88 Ruixiang Road,
Wuhu City, Anhui Province Wuhu 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
disclosed Times, and Securities Daily
Media and website where this Report is
http://www.cninfo.com.cn
disclosed
Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang
Place where this Report is lodged
Road, Wuhu City, Anhui Province
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
IV Change to Company Registered Information
Unified social credit code 91340200713927789U
Changes to the principal activities
of the Company since going public No changes in the Reporting Period
(if any)
Every change of controlling
shareholder since incorporation (if No changes in the Reporting Period
any)
V Other Information
The independent auditor hired by the Company:
Name Huaxing Certified Public Accountants LLP
Office address
City, Fujian Province
Accountants writing
Zhang Fengbo and Gao Yunjun
signatures
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
Orient Securities Building,
From 10 March 2021 until
No. 119 South
Orient Securities Wang Bin and Wang the proceeds of the
Zhongshan Road,
Company Limited Dehui private placement are
Huangpu District,
used up
Shanghai
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
change (%)
Operating revenue 15,965,709,257.7
(RMB) 3
Net profit attributable
to the Listed
Company’s
shareholders (RMB)
Net profit attributable
to the Listed
Company’s
shareholders after
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
deducting non-
recurring profits and
losses (RMB)
Net cash flows from
operating activities 3,538,334,677.62 2,997,982,682.73 18.02% 3,147,037,336.46
(RMB)
Basic earnings per
share (RMB/share)
Diluted earnings per
share (RMB/share)
Weighted average
return on equity (%)
Change of
December 31, December 31, 2025
December 31, 2024 December 31, 2023
Total assets (RMB) 19,582,691,938.40 13.95% 19,134,551,079.36
Equity attributable to
the Listed Company’s 12,920,729,844.38 4.75% 12,706,945,475.87
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 lowest of the Company’s audited profit before income tax expenses, net
profit, and net profit before non-recurring profits and losses for the Reporting Period is negative.
□ Yes ? No
VII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 4,243,286,846.87 4,242,829,842.75 3,974,698,193.46 3,504,894,374.65
Net profit
attributable to the
Listed Company’s
shareholders
Net profit
attributable to the
Listed Company’s
shareholders after 536,488,161.79 850,748,190.59 873,166,176.98 584,955,892.84
deducting non-
recurring profits
and losses
Net cash flows from
operating activities
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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 2025 2024 2023 Note
Gain or loss on disposal of non-
current assets (inclusive of
impairment allowance write-
offs)
Government grants
recognized in profit or loss
(exclusive of those that are
closely related to the Mainly due to
Company's normal business government grants
operations and given in 27,104,789.60 73,289,931.28 59,144,627.86 other than the
accordance with defined rebates of value-
criteria and in compliance added tax
with government policies, and
have a continuing impact on
the Company's profit or loss)
Gain or loss on fair-value
changes in financial assets
and liabilities held by a non-
financial enterprise, as well as
on disposal of financial assets
and liabilities (exclusive of the
effective portion of hedges
that is related to the
Company's normal business
operations)
Reversed portions of
impairment allowances for
receivables which are tested
individually for impairment
Non-operating income and
expenses other than the -23,433,508.19 -2,212,101.11 7,082,898.99
above
Less: Income tax effects 16,585,031.12 9,148,746.86 25,007,516.39
Non-controlling interests
-2,274,623.90 -8,224,157.18 -3,344,940.13
effects (net of tax)
Total 54,869,680.12 81,750,487.35 161,270,467.65 --
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Part III Management Discussion and Analysis
I Principal Operations of the Company in the Reporting Period
(I) The Company’s principal operations and products
The Company specializes in the development and publishing of games for global players, with the game
development brand “Three Seven Games”, as well as game publishing brands “37Mobile”, “37GAMES” and
“37Online”. The Company precisely grasped the industry development trends, and made continuous
improvements in operation, while adhering to the "boutiqueization, diversification and globalization" strategy.
For the Reporting Period, the Company recorded operating revenue of RMB15,966 million, a year-over-year
(YoY) decrease of 8.46%; and a net profit attributable to its shareholders of RMB2,900 million, a YoY increase of
Three Seven Games 37Mobile 37GAMES 37Online
(game development) (publishing of mobile (overseas publishing) (publishing of mobile
games) & browser games)
During the Reporting Period, the Company's products that had been published for many years, including
Puzzles & Survival, SoulLand: Clash of Spirimasters (斗罗大陆：魂师对决), Trading Legend (叫我大掌柜), Fan Ren
Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇), and Nobody's Adventure Chop-Chop (寻道大千), maintained
long-term operations, while new products such as Bonk Bonk Tribe (时光大爆炸), Lootborn Warriors (英雄没有闪),
The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界), and Survive for 33 Days (生存33天) delivered outstanding
performance, continuously underpinning the Company’s steady development. During the Reporting Period,
the mobile games we published globally achieved peak monthly gross billings of approximately RMB2,200
million, with peak global monthly active users exceeding 130 million.
Centering on industry development trends and the Company's core competitive advantages, on the one
hand, we continue to deepen our strategic presence in the mini-game and lightweight game segments,
continuously enriching product categories and innovating gameplay to consolidate our core competitive
advantages; on the other hand, we focus on the research and development as well as global publication of
SLG, MMORPG, and business simulation games, continuously increasing investment in innovation in core
gameplay, long-term operations, the development of localization capabilities, etc., while orderly advancing
the exploration of overseas casual products.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
During the Reporting Period, the idle ARPG game, Lootborn Warriors (英雄没有闪), quickly topped the iOS
free app chart following its app launch and broke into the top five of the iOS bestseller list. Its applet version
also quickly rose to the top of the WeChat mini-game bestseller list, maintaining a stable presence in the top
five and winning the WeChat Mini Games “2025 Innovative Breakthrough Mini Game” award. Building on its
core gameplay, the game expands its narrative depth by introducing emotionally engaging hero growth lines
and an extended world view, enhancing user immersion and sparking community discussion, earning
widespread acclaim from players.
The Company's Chinese-style simulation game Nobody's Adventure Chop-Chop (寻道大千) saw a rebound
in performance through refined long-term operations and optimized event pacing, demonstrating the
continued evolution capabilities of a mature product and the notable highlight of “revitalizing legacy
products”, validating its strong monetization and user retention capabilities. The game achieved multiple
breakthroughs in its collaborative models, including partnerships with the popular Chinese comic—Battle
Through the Heavens (斗破苍穹)—and Meituan for an immersive consumer experience, collaboration with the
classic Xuanhuan IP, Shen Mu ( 神 墓 ), and the nationally popular IP, Calabash Brothers ( 葫 芦 兄 弟 ). It also
actively participated in the Weifang International Kite Festival to showcase traditional culture, bridging the
game world with real-life experiences. In terms of version and content updates, we continued to deepen the
worldview and gameplay experience around the core of Chinese-style simulation, and innovatively
introduced the "classic IP + regional culture + public welfare actions" to promote the integration of game
content and social value.
Our time progression business simulation game Bonk Bonk Tribe (时 光大 爆 炸 ) leveraged its differentiated
theme and lightweight simulation experience to rapidly attract users, topping the free charts upon its app
release. On the WeChat Mini Games platform, it ranked within the top three for popularity and top four for
bestsellers, earning the “2025 Innovative Breakthrough Mini Game” award and frequently appearing on
subcategory charts. Over time, it has become a key addition to our portfolio of emerging products.
During the Reporting Period, the Company’s modern-themed simulation game My Memory Shop (时光杂货
店 ) operated steadily. By adapting to market trends through continuous innovation and breakthroughs, the
game adopted a more flexible go-to-market strategy. It developed a more comprehensive user engagement
model through IP collaborations, public welfare campaigns, and city tours, such as collaborations with classic
film IPs, such as A Chinese Odyssey (大话西游) and introducing a creative worldview of “ancient characters in
the modern world”. These efforts strengthened the consistency of online and offline content operations,
effectively prolonging the game’s lifecycle and further solidifying the Company’s long-term operation strength
in the business simulation genre.
During the Reporting Period, the Company began public testing for The Soul Land: Lie Hun Shi Jie (斗罗大陆：
猎魂世界), a self-developed game based on the novel and anime, Soul Land, which received both the novel
and anime licenses. This product, the first 3D realistic MMORPG based on the IP, the Soul Land, fully
implemented the Company’s strategy of boutiqueization. The game had garnered over ten million pre-
registrations and quickly ascended to the top of the iOS free app charts, becoming another benchmark for
the Company’s deep involvement in the MMORPG sector.
During the Reporting Period, the Company’s self-developed gacha mobile game SoulLand: Clash of
Spirimasters (斗罗大陆：魂师对决) launched the “Speed Server” concept, which significantly improved the user
experience by accelerating early-stage growth and enriching in-game rewards. It also initiated a
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
collaboration with Cantonese culture, incorporating intangible cultural heritages such as Cantonese
embroidery and Cantonese opera to help promote traditional Chinese culture through its immersive game
presentation. This encouraged user re-engagement, stabilized daily active users, and further prolonged the
game’s lifecycle.
During the Reporting Period, the mobile game Fan Ren Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇)
launched its anniversary version “Shuang Dao Gong Ran” (双道共燃) in mid-2025. The game collaborated with
Battle Through the Heavens (斗破苍穹) to create a “Realm-Breaking Duel” cultivation concept 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 MMORPG lineup.
During the Reporting Period, the Company's Chinese-style business simulation mobile game, Trading
Legend ( 叫 我 大 掌 柜 ), maintained a leading position within the business simulation game segment through
steady version updates and carefully designed events. This performance demonstrates its solid user base and
mature monetization model, highlighting the long-term vitality and sustainable revenue generation of our
established products. During the Reporting Period, Trading Legend ( 叫 我 大 掌 柜 ) centered on Song Dynasty
commerce and traditional Chinese market culture, continuously deepened the expression of traditional
culture, and, through collaborations with the National Games and intangible cultural heritage of Quanzhou,
reinforced the "Ancient Market Master" brand identity, thereby strengthening emotional engagement among
long-term users while enhancing the game's social recognition. The product, through stable performance,
cultural co-creation, and content evolution, successfully established a mature path for the sustainable
operation of legacy products.
During the Reporting Period, the Company's self-developed survival-themed RPG mobile game Survive for
topping the bestseller charts of platforms such as WeChat Mini-Game, Douyin Mini-Game, TapTap, etc.,
demonstrating the Company's continued ability to explore the balance between gameplay innovation and
user experience in the mini-game and lightweight game segments.
globalization
The Company, drawing upon its years of experience in overseas expansion, has continued to build
strength in core categories such as SLG, MMORPG, business simulation games, and casual games. It has
continuously explored overseas markets based on its "tailored games" strategy, sought growth opportunities
in those markets, and refined its long-term operation strategy. This has led to the sound development of its
overseas business. During the Reporting Period, the Company achieved overseas operating revenue of
RMB5,381 million, accounting for 33.70% of its total operating revenue.
In the SLG segment, we continue to focus on large-scale themes and deep gameplay innovation as our
core development direction, systematically advancing our product pipeline from the perspective of user
needs and long-term operations. Our current pipeline includes key projects such as Code K3 (代号 K3), with
targeted optimizations in gameplay integration, content depth, and monetization models.
For example, Last Asylum: Plague, launched in 2026, introduces lightweight gameplay such as business
simulation into its core SLG framework as an entry point for the early-stage experience, effectively
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shall prevail.
enhancing new users' sense of immersion and playability. Combined with the mature global user base for
medieval and survival-themed content and its differentiated art presentation, it has demonstrated strong
potential in user acquisition efficiency, user retention, monetization capabilities, etc.
Meanwhile, in terms of mature product operations, the Company prolongs product life cycles by
continuously introducing new gameplay features and cross-industry collaborations. Puzzles & Survival, our
phenomenal product launched overseas that integrates "Match-3 gameplay + SLG", continues to maintain
a relatively stable gross billing contribution even years after its launch. As of the end of 2025, the product
had a cumulative global user base exceeding 70 million, with the cumulative gross billing over RMB15 billion.
It had ranked on Sensor Tower's monthly revenue chart for overseas mobile games for 12 consecutive
months and had appeared on the annual chart for four consecutive years, fully demonstrating the
Company's mature capabilities in long-term product operations.
Since its official launch, the Company's fantasy match-3 mobile simulation game Puzzles & Chaos has
consistently ranked first among new overseas releases in the high fantasy SLG segment and maintained a
position within the top 50 on the annual overseas simulation game chart. By building a multi-channel
publishing matrix, advancing refined user operations, and continuously exploring the potential for
integrating high fantasy themes with SLG gameplay, we have driven the product to maintain steady growth
in overseas markets, with the scale of new users continuing to increase and repeatedly reaching new highs.
In the MMORPG segment, the Company focuses on the key new product Ragnarok: The New World (RO
仙境传说：世界之旅) by continuously improving product quality, strengthening IP influence, and innovating
publishing strategies. The product was officially launched in Hong Kong, Macao, and Taiwan of China on
January 2026, topping the free apps and bestseller charts of major local app stores. As the product
gradually expands into Southeast Asia and more overseas markets, it is expected to continue unlocking the
value of the IP and further solidify the Company’s strategic footprint in the MMORPG track.
In the casual game segment, we focus on core gameplay mechanics such as match-3 and hybrid styles.
While strengthening foundational gameplay experiences, we continue to explore differentiation in themes
and narrative. Through multi-dimensional validation in art style, storyline packaging, and level design, we
continuously optimize product-market fit and user retention, building valuable experience for future large-
scale publishing.
The Company remains committed to inheriting and promoting China's outstanding traditional culture,
actively exploring ways to integrate games with cultural development. Throughout product development
and operations, we keep incorporating Chinese cultural elements into gameplay and narrative systems.
Through games, a digital content medium with extensive international influence, we continuously promote
Chinese culture into overseas markets in a more interactive and communicative manner, aimed at
demonstrating the unique connotations and contemporary value of Chinese culture.
For example, Puzzles & Survival incorporates traditional symbols such as the Qixi Festival's Qiniang Pan
and the Qiqiao legend into game narratives and event designs. Through immersive festival interactions and
romantic-themed storytelling, global players can experience the emotional expression and romantic
undertones of Eastern culture. Similarly, Trading Legend (叫我大掌 柜) incorporates Quanzhou Xunpu's “Zan
Hua Wei” intangible cultural heritage into its ancient-style management gameplay. By digitally recreating
heritage craftsmanship and fishermen's daily life, the game presents overseas users with a culturally rich and
regionally distinctive living experience, vividly showcasing the historical depth and humanistic charm of
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Maritime Silk Road culture.
The Company continues to explore the balance between expressing Eastern aesthetics and crafting
globally appealing narratives. Through systematic content design and localized operational practices, we
steadily increase the acceptance and influence of Chinese cultural content in overseas markets, positioning
our games as important vehicles for cross-cultural exchange. During the Reporting Period, the Company
was named a "Key National Cultural Export Enterprise for 2025–2026" in recognition of our sustained
investment and achievements in cultural export.
The Company focuses on its core gaming business, and continuously expands the boundaries of its self-
development capabilities. Leveraging a mature methodology for IP adaptation and a three-element
integrated approach for non-IP projects, i.e., "theme packaging, prototype gameplay, and long-term
monetization model", we build stable and efficient project initiation capabilities, actively pursue diversified
categories, develop products with a global perspective, meticulously refine product details, and remain
"Dedicated to Making Premium Games".
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. Meanwhile, it has continued to set up research and development studios for
SLG and casual games, and has established research and development branches in Beijing, Shanghai, etc.
This has led to a strong product pipeline, representing diversified offerings to come.
The Company is currently accelerating the release of its reserved products, aiming to deliver a more
diversified gaming experience for players. Looking ahead, certain key games in the pipeline are presented
below:
Intended
Source of
Name of game Game category, theme and style publishing
game
area
Self-
Battle Through the Heavens: Dou Di Zhi Lu
develop Chibi Xuanhuan RPG Global
(斗破苍穹：斗帝之路)
ed
Self-
The Soul Land: Chuan Cheng (斗罗大陆：
develop Chibi Xuanhuan RPG Global
传承)
ed
Self-
develop Xiao Tou Kui Da Mao Xian (小头盔大冒险) Chibi fantasy RPG Global
ed
Self-
develop Huang Mo Sha Zhou (荒漠沙舟) American cartoon survival SLG Global
ed
Self-
develop Code YCSLG (代号 YCSLG) Survival SLG Global
ed
Self-
develop Code KGSLG (代号 KGSLG) Medieval SLG Global
ed
Self-
develop Code ZXRRPG (代号 ZXRRPG) Chibi adventure RPG Global
ed
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Self-
develop Code MLRPG (代号 MLRPG) High fantasy RPG Global
ed
Self-
develop Code MRRPG (代号 MRRPG) Chibi survival RPG Global
ed
Self-
develop Code Hope (代号 Hope) Survival hybrid Overseas
ed
Self-
develop Code FMR (代号 FMR) Realistic football gacha SLG Global
ed
Traditional Chinese ink painting-style
Agency Zhui Xu (赘婿) Global
business simulation game
Battle Through the Heavens: Mo Qi Shao
Agency Oriental Xuanhuan MMORPG Domestic
Nian Qiong (斗破：莫欺少年穷)
Battle Through the Heavens: Xiao Yan
Agency Oriental Xuanhuan RPG Domestic
Zhuan (斗破苍穹：萧炎传)
Agency The Soul Land: Zero (斗罗大陆：零) Oriental Xuanhuan gacha RPG Domestic
Agency Zhua Zhua Da Luan Dou (爪爪大乱斗) Chibi animal casual battle Domestic
Agency Code ZT (代号 ZT) Ancient farm otome-oriented Domestic
Agency Code ZH (代号 ZH) Chibi ancient style casual Domestic
Agency Code K3 (代号 K3) Survival SLG Overseas
Agency Code JX (代号 JX) Oriental Xuanhuan idle RPG Domestic
Agency Endless Night (无尽黑夜) Survival SLG Domestic
Agency Code FX2 (代号 FX2) Oriental Xuanhuan idle RPG Domestic
Agency The Soul Land: Qi Cheng (斗罗大陆：启程) Oriental Xuanhuan idle RPG Global
Agency Xun Long Bi Ji (寻龙笔记) Chinese-style adventure RPG Domestic
Agency Code K5 (代号 K5) Survival SLG Overseas
Agency Code Dream (代号 Dream) Casual puzzle match-3 Overseas
(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 model
The Company places a high 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 continuously 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 high-quality data accumulated over the years, independently developing the gaming-specific large
model “Xiao Qi”. Leveraging its self-developed “Xiaoqi Large Model” as the core, the Company integrates
mainstream external large model clusters to build its AI capability foundation, empowering the full range of
its general and specialized systems. During the Reporting Period, the "Xiao Qi Large Model” received
generative AI service approval from the Cyberspace Administration of China, becoming one of the first
game-specific large models in Guangdong Province to achieve this milestone. This signifies that the model
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
meets national standards in practical application, algorithmic security, data compliance, and content
governance.
Continuous upgrades to the AI capability system: Relying on the industry-specific large model “Xiao Qi”,
the Company builds the “Xiao Qi AI Agent Platform”. This platform covers 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 development and operation.
During the Reporting Period, we continued to advance the upgrade and iteration of our AI capability
framework. We launched an enterprise-grade intelligent knowledge base platform "Zhi Qi" ( 知 七 ) and a
multi-agent collaboration platform "Zhi Qi" (智七). As of now, the “Xiao Qi AI Agent Platform” has integrated
more than 150 various large models and AI tools, providing unified capability support for intelligent
applications across the Company's business processes.
(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-text, AI-multimodal, and AI-
comprehensive applications categories.
AI-text: AI-text application scenarios of the Company have shown continuous improvement. For
example, AI localization translations now cover all of the Company’s overseas games in 18 languages with a
peak accuracy of 95% per language. All of the Company’s games have integrated AI-powered customer
service with a 90% resolution rate to offer more efficient, intelligent service experiences to players.
AI-multimodal: In the publishing process, over 80% of the 2D art assets used by the Company are now
generated using AI technology as a support. During the Reporting Period, more than 500,000 2D images
were produced each quarter. In terms of AI-3D generation, the Company continuously increases 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 the Reporting Period, 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.
AI-comprehensive applications: The Company's AI-assisted code generation covered code review,
event code generation, back-end system code generation, and automated testing, among other
processes. AI penetration in coding has exceeded 40%. In advertising, the "Quantum" platform and the
"Zeus" platform are fully integrated with AI capabilities, with AI-assisted ad placements accounting for 50% of
total spend, significantly improving delivery efficiency. On overseas platforms, AI-assisted image diffusion
accounts for 20% of usage. Meanwhile, leveraging its AI capabilities, the Company has developed a
material infringement detection system for intellectual property protection. Within five months after launch,
the system boosted the efficiency of identifying and obtaining core external infringement clues by
approximately nine times, effectively strengthening the Company’s intellectual property protection
capacity.
In terms of product development, AI algorithms are employed to capture high-precision and high-
performance motions, and the capture function for facial expressions has been introduced, addressing the
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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 SoulLand: Clash of Spirimasters ( 斗 罗 大 陆 ： 魂 师 对 决 ), Three
Kingdoms: Glory of Heros (霸业), The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界), and Ragnarok: The New
World (RO 仙 境 传 说 ： 世 界 之 旅 ) 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. Furthermore, the Company has continued to deepen its research in artistic resource
generation algorithms based on Generative Adversarial Networks (GAN), Stable Diffusion (SD), and Neural
Radiance Fields (NeRF). It has built an intelligent art asset generation platform that supports physical
rendering workflows, and developed features such as animation generation and migration, as well as 3D
model generation, thereby streamlining the game development process. The Company has also built an
intelligent art asset management platform powered by AI, enhancing smart search and AI-based tagging
of art resources. By more finely managing development resources, we continue to improve the reuse rate of
art assets.
Overall, AI penetration continues to deepen across the Company, embedding into employees' daily
workflows. The “Xiaoqi AI Agent Platform” has been used by much more people and more frequently across
the Company, greatly improving employee productivity, and driving higher organizational efficiency and
operational intelligence. For example, in game publishing and operations, the "Destiny" platform delivers AI-
powered public opinion reports covering over 30 games, greatly enhancing the capacity for high-
frequency perception and assisted analysis of public opinion trends. In functional management scenarios,
the Xiaoqi AI Meeting Minutes System has become a commonly used tool in key communication scenarios,
effectively improving information circulation and cross-departmental collaboration efficiency.
In terms of AI talent development and cultural innovation, the Company places great importance on
cultivating AI talent, actively promoting AI learning among employees. It has established an “AI Efficiency
Committee” to implement a top-down, AI innovation-driven corporate culture strategy and promote AI
applications in all business links. It places great importance on cultivating AI talent. Innovative activities such
as the “21-Day AI Learning Challenge”, “Open Classes on AI”, and “AI Expert Program” certification have
been carried out to comprehensively enhance employees’ AI skills. In parallel, the Company has
continuously expanded its AI-related job functions to build a robust talent pipeline that supports its AI
strategy. The ultimate goal is to drive enterprise-wide innovation through AI and inject new momentum into
industry development.
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 the gaming business.
(3) AI-driven game innovation and exploration of diversified value
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,
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
animation effects, and style testing outcomes, thereby enhancing the efficiency of project approval and
version update processes.
Exploration of the AI+Games Technology: The Company continues to conduct technical research and
internal testing centered on the "AI+Games" strategy. It focuses on the application potential of AI in content
generation and personalized interaction, and further explores the supportive value of AIGC technology
across multiple content contents and processes, including storyline, art, programming and music. In parallel,
the Company conducts research on gameplay innovations such as intelligent NPC systems and AI-powered
in-game housing systems, and explores integration pathways between games and UGC creation. These
efforts aim to enhance the intelligence of in-game interaction and deliver more immersive player
experiences.
Exploring the diverse value of AI: The Company continues to explore the diverse possibilities of
"Games+AI" in creating social value. For example, as one of the first "Guangzhou City Partners", we have
developed the "CongMei AI Assistant" for the 15th National Games, leveraging the "Xiao Qi" large model to
provide smart services such as event information consultation, venue navigation, and personalized cultural
and tourism recommendations. During the Reporting Period, the Company launched the "Ling Cha Cha"
platform for brand content insights and intellectual property protection, offering brand reputation
monitoring, communication analysis, and infringement risk identification services. The platform supports
enterprises in sectors such as entertainment, e-commerce, and technology with digital asset protection and
related services. In the healthcare sector, the Company has collaborated with Zhujiang Hospital of Southern
Medical University to explore gamified applications for Alzheimer's cognitive training. By combining AI with
interactive game design, the collaboration seeks to develop supportive training solutions for individuals with
cognitive impairments, demonstrating a multifaceted approach to leveraging AI and games for social
impact.
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 a 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.
(4) Technology ecosystem and investment strategy focused on long-term competitiveness
The Company adheres to an investment strategy guided by "core business synergy + strategic
positioning in frontier technologies". On one hand, our investments target innovative entities that can form
effective synergies with our game R&D and operation and support the development of our core business;
on the other hand, we focus on frontier technologies with strong policy support, high growth potential, and
broad expansion opportunities, steadily advancing technology capability building and forward-looking
strategic positioning. In recent years, focusing on the upstream and downstream segments of its core
industrial chains of cultural and entertainment technology, human-computer interaction, and artificial
intelligence, the Company has invested, directly or indirectly, in a number of innovative enterprises. The
portfolio includes Zhipu AI, Moonshot AI, Baichuan AI, AIsphere, Luxvisions, Tsing Micro, LuminX, HYQ, Huixi,
BrainCo, iStar, and RayNeo. The Company explores the adaptive application of technologies from invested
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
enterprises in the game R&D and operation pipeline, and continuously empowers business innovation and
technological capacity expansion through strategic investments.
(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 model, 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 model, 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.
(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 a comprehensive entertainment provider in China’s A-stock market. It is a Key
Cultural Export Company of China, Demonstration Base for China’s Cultural Industry, Civilized Institution in
Guangdong Province, Top 30 Cultural Enterprise of Guangzhou, and Guangzhou City Partner, among others.
In 2025, the Company has risen to No. 17 on a list of China’s top 100 internet companies. It has been steadily
advancing with the development strategy of “boutiqueization, diversification and globalization”, and
promoting high-quality and sustainable development. With “bringing joy to the world” as its mission, the
Company is dedicated to becoming an excellent and sustainable entertainment provider.
II Industry Overview for the Reporting Period
According to the 2025 China’s Game Industry Report released by the Game Publishing Committee of
China Audio-video and Digital Publishing Association (CADPA), in 2025, the actual sales revenue of the
domestic gaming market reached RMB350,789 million, representing a YoY increase of 7.68%; and the number
of game users approximated 683 million, a YoY increase of 1.35%. Both figures have hit record highs.
In recent years, the mini-game segment has seen a surge in blockbusters. 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 2025, the revenue from domestic
applet games amounted to RMB53,535 million, a considerable YoY growth of 34.39%.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
In 2025, the self-developed games in China generated USD20,455 million in overseas market revenue, a
YoY increase of 10.23%. The United States, Japan, and South Korea remained the primary target markets for
Chinese mobile games abroad, with respective shares of 32.31%, 16.35% and 9.15%. Additionally, the
combined market share of Germany, the United Kingdom, and France was 8.84%. Among the top 100 self-
developed mobile games with the highest overseas revenue, strategy games (including SLG) accounted for
respectively). In the overseas revenue rankings over the past five years, strategy games have remained at the
top. The strategic value and growth potential of the SLG genre have continued to hit record highs.
In 2025, driven by policy support, a sound ecosystem, and technological innovations, the Chinese game
industry showed steady growth. The industry focused on the development and innovation of high-quality
games, comprehensively enhancing product quality while accelerating global expansion. The industry scale
continued to grow, economic potential continued to be released, and strong momentum for high-quality
development was injected.
promoted cultural export.
In March 2025, the General Office of the CPC Central Committee and the General Office of the State
Council issued the Special Action Plan for Boosting Consumption, proposing to “strengthen consumption
brand leadership. Focus on commerce, logistics, culture 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
domestic and international markets for fashionable domestic brands”.
In April 2025, the Ministry of Commerce issued a notice titled “Work Plan for Accelerating the Promotion of
the Comprehensive Pilot Program for Expanding Opening-up of the Service Industry”, which proposed the
development of game exports and encouraged a full industrial chain layout from IP creation to game
production, distribution, and overseas operations. In May 2025, Guangdong Province published Several Policy
Measures for Promoting High-Quality Development of Guangdong’s Online Game Industry, which focused on
supporting original high-quality games, technological innovation, optimizing the business environment,
establishing industrial clusters, improving support systems, and strengthening service support mechanisms to
promote the high-quality development of Guangdong’s online game industry.
In March 2026, the Outline of the 15th Five-Year Plan for Economic and Social Development of the
People's Republic of China was released. It explicitly emphasizes the need to “guide and regulate the healthy
development of online literature, online games, and online audiovisual content” and to “encourage cultural
enterprises to expand internationally, promote the overseas dissemination of high-quality online literature,
games, films, animation, and premium exhibitions, and strengthen the construction of international
communication key bases and national cultural export bases”, further supporting the healthy and high-quality
development of the industry.
In response to national policies, the Company has earnestly implemented administrative requirements,
actively seeking to integrate cultural significance into player experiences and apply innovative technologies.
It delved into the essence of traditional culture in game R&D and operational strategies. By implementing a
"Games+" model, the Company aims to achieve mutual empowerment of cultural and industrial value.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
For example, during the Reporting Period, under the guidance of the Guangdong Provincial Department
of Agriculture and Rural Affairs, the Company actively responded to the lychee initiative under the “Hundred-
Thousand-Ten Thousand Project”. Using digital methods to unlock the cultural and commercial potential of
lychee-themed content, the Company creatively incorporated lychee cultural elements into games such as
Trading Legend ( 叫 我 大 掌 柜 ), Bonk Bonk Tribe ( 时 光 大 爆 炸 ), My Memory Shop ( 时 光 杂 货 店 ), and Nobody’s
Adventure Chop-Chop ( 寻 道 大 千 ), developing a crossover edition titled “You Li Quan Qiu ( 游 荔 全 球 )”. By
aggregating in-game traffic, the initiative helped expand sales channels for local lychee farmers, enabling
Guangdong lychees to reach the global stage through the “Games+” digital approach.
Furthermore, the Company actively explored the “Games+” integrated development model of
“technology + cultural tourism”. The Company has combined the virtual character and real-world cultural
tourism scenarios to facilitate the promotion of cultural tourism in cities such as Guangzhou. For example,
during the Reporting Period, the Company developed the digital product My Intangible Cultural Heritage
Treasure: A Culinary Journey, which presented the representative traditional culinary craftsmanship, such as
poon choi (an auspicious one-pot dish served in a very big pot) and yum cha (Cantonese tradition of
breakfast or brunch involving Chinese tea and dim sum), through engaging game interactions and graphical
programming. This approach sparked interest in discovering intangible cultural heritages and cultural depth.
Furthermore, at the “Guangzhou: The Capital of Gourmet” brand launch event organized by the Guangzhou
Municipal Administration for Market Regulation, the Company’s virtual character, “CongMei”, became the
brand ambassador, showcasing the charm of Guangzhou’s food culture in a lively and interactive manner
and bringing the brand story of “Guangzhou: The Capital of Gourmet” to life.
In 2025, the Company became one of the first “Guangzhou City Partners” as a designated “Super
Partner”, further deepening its collaboration with the local government and expanding partnership
opportunities to co-create a new blueprint for the development of Guangzhou’s digital economy. The
Company launched a special version of Trading Legend (叫我大掌柜) called “National Games Guangzhou”
and, relying on the in-house gaming-specific large model “Xiao Qi”, applied generative AI technology to
allow players to join the Cantonese lion dance in the digital twin of Guangzhou, experience Cantonese yum
cha culture, and explore online reproductions of cultural landmarks such as the Five Rams Statue and Chen
Clan Ancestral Hall. Players from around the world are able to enjoy a “cloud tour of Guangzhou” from their
homes.
On August 21, 2025, the State Council issued the Opinions on Deepening the Implementation of the "AI
Plus Initiative, aiming to promote the broad and deep integration of AI across all sectors of the economy and
society, reshape production and lifestyle paradigms, drive revolutionary leaps in productivity, and enable
profound changes in production relations, accelerating the formation of an intelligent economy and society
characterized by human-machine collaboration, cross-industry integration, and co-creation and sharing.
On September 15, 2025, the Ministry of Industry and Information Technology and six other departments
issued the Implementation Plan for Further Promoting Innovation in Service-Oriented Manufacturing, which
seeks to integrate technological and industrial innovation, strengthen the capabilities of the productive
service sector, stimulate business vitality, solidify the foundation for development, optimize industrial ecology,
upgrade service-oriented manufacturing, and promote the deep integration of advanced manufacturing
and modern services to cultivate new productivity and competitive advantages.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
The gradual maturity of AI technologies has increasingly created a synchronous development trend
between the gaming industry and AI, making AI-driven innovation a key factor in global product
competitiveness. The Company adheres to technology leadership and innovation-driven development,
explores the possibilities for profound integration of AI and various cutting-edge industry technologies with our
business, and advances our internal innovation capabilities. Since 2018, the Company has been actively
exploring AI, and today has established a full-chain AI empowerment system centered on its self-developed
industry-specific large model "Xiao Qi", embedding AI deeply into game development, operations, and
publishing to enhance both efficiency and quality.
The Company has remained focused on its core business, deepened its "integration of R&D and
operation" strategy, and continued to enhance its capability of producing quality games. We explore
possibilities of integrating technology into our business by leveraging resources both within and outside the
entertainment 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.
III Core Competitiveness Analysis
The Company’s core competitiveness remained largely the same during the Reporting Period.
resilience
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. Guided by the enduring marathon spirit across the entire organization, the Company maintains
the stable operation of its existing business model. Centering on key products and core businesses, it
advances operational initiatives to improve operational efficiency and market responsiveness. Against the
backdrop of an evolving industry landscape, the Company leverages its core competitive strengths and
keeps a close eye on emerging market opportunities. It pursues strategic business layout upon prudent
evaluation. Empowered by a robust team and a scientific management mechanism, the Company seizes
market opportunities and has achieved sustained growth amid multiple industry transitions. In the course of
development, the Company has established a sound and efficient internal management mechanism and
consistently prioritized talent cultivation and team building. By virtue of a well-rounded promotion
mechanism, remuneration management system and performance incentive framework, the Company
stimulates employees’ enthusiasm and creativity, further strengthens operational resilience, and advances
all business lines in a steady manner.
portfolio
The Company has continuously advanced its strategy of "integration of R&D and operation", deepened
its diversified product portfolio, and established a multidimensional product portfolio. First, the Company
continuously expands its self-development capabilities, strengthens its foothold in core product segments,
and advances the development of key products from a global perspective. This has cultivated a product
portfolio with self-developed offerings as a core component. Second, through investment empowerment
and business support, the Company has maintained long-term partnerships with numerous developers for
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
years, , and continuously built up a portfolio of high-quality, deeply customized products. Third, by
cooperating with developers with long-term and stable partnerships, the Company further supplements and
optimizes its product portfolio. Under the above-mentioned models, the stability and diversity of the
Company’s product portfolio have been steadily enhanced, forming a diversified and well-rounded
product portfolio and driving the sustainable growth of the Company’s business.
Under the “integration of R&D and operation” model, the Company strengthens collaboration between
R&D and operation arms. Leveraging feedback on market and user demands from the operation side, it
supports the R&D team in optimizing product design. Meanwhile, close cooperation between the R&D and
operation teams enables timely adjustments to content updates and operational strategies for launched
products, enhancing sustained operation capacity and enabling more effective long-term operations.
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 launched and operated numerous games across diverse genres and
themes in global markets. In this process, the Company explores innovative marketing approaches and
promotion pathways in response to market changes. It adopts a variety of creative marketing strategies,
such as renowned IP collaboration, celebrity endorsement and situational presentation, builds a long-term
ecosystem centered on user social interaction, and continuously iterates its publishing capability.
Prioritizing innovation, the Company fosters an open and inclusive environment for innovative
exchanges. It keeps a close watch on the application of emerging technologies in game R&D and
operation. Based on actual business needs, the Company applies big data, artificial intelligence and other
technologies to multiple links including project initiation, content production, publishing and operation, as
well as data asset management. Over the years, by continuously iterating and optimizing smart products
across the entire R&D and operation chain, the Company has upgraded its game industrial pipeline and
improved overall R&D and operational efficiency. In addition, the Company closely monitors development
trends in the upstream and downstream segments of its core industrial chains of cultural and entertainment
technology, human-computer interaction, and artificial intelligence. It explores opportunities for
technological transformation and business synergy through strategic investment, supports the continuous
expansion of application scenarios for new technologies, promotes resource sharing and complementary
advantages, and gradually builds a win-win ecosystem.
IV Analysis of Principal Operations
See “I Principal Operations of the Company in the Reporting Period” above.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
(1) Breakdown of Operating Revenue
Unit: RMB
As % of As % of Change (%)
Amount operating Amount operating
revenue (%) revenue (%)
Total operating 15,965,709,257. 17,440,957,495.
revenue 73 58
By operating division
Online games 99.30% 99.15% -8.32%
Others 112,022,490.20 0.70% 148,345,168.84 0.85% -24.49%
By product category
Mobile games 97.27% 96.80% -8.01%
Browser games 324,604,647.16 2.03% 410,474,829.76 2.35% -20.92%
Others 112,022,490.20 0.70% 148,345,168.84 0.85% -24.49%
By operating segment
Domestic 66.30% 67.19% -9.68%
Overseas 33.70% 32.81% -5.96%
By marketing model
Independent 14,401,440,221. 15,602,811,026.
operation 64 98
Joint operation 1,564,269,036.0 1,838,146,468.6
and others 9 0
Unit: RMB
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Operatin
g
revenue
Net profit
attributa
ble to the
Listed 549,180,6 851,066,3 944,463,6 555,517,4 616,151,7 648,481,8 632,833,1 775,554,6
Compan 10.69 39.34 60.38 91.91 56.28 22.67 02.61 45.74
y’s
sharehol
ders
Reasons for business seasonality (or periodicity) and risk of fluctuations:
There is no significant seasonality or periodicity in the operations of the Company.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
(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 YoY change YoY change
Operating
Cost of sales profit in operating in cost of in gross profit
revenue
margin revenue (%) sales (%) margin (%)
By operating division
Online 15,853,686,767. 3,760,636,666.3
games 53 2
By product category
Mobile 15,529,082,120. 3,664,376,030.2
games 37 3
Browser
games
By operating segment
Domestic 77.85% -9.68% 3.29% -2.78%
Overseas 71.93% -5.96% 3.65% -2.61%
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
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
Operating As % of Change
Items As % of cost
division Amount Amount cost of (%)
of sales
sales
Royalties 3,395,631,997.05 88.10% 87.56% 4.07%
Online Cost of
games servers
Amortization
of copyright
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
money
Other costs 6,805,034.38 0.18% 3,092,045.24 0.08% 120.08%
Agency
promotion 36,495,134.77 0.95% 79,762,710.53 2.14% -54.25%
Other
cost
Other costs 57,168,189.42 1.48% 32,779,768.46 0.89% 74.40%
Total 3,854,299,990.51 100.00% 100.00% 3.43%
Note:
Other costs are mainly labor costs, technical service charges, etc.
Breakdown of the cost of sales for the principal operations:
Unit: RMB
Breakdown of
As % of cost of As % of cost of Change (%)
cost Amount Amount
sales sales
Royalties 88.10% 87.56% 4.06%
Cost of servers 228,774,338.13 5.94% 248,810,685.72 6.68% -8.05%
Amortization of
copyright 131,100,260.58 3.40% 101,196,386.86 2.72% 29.55%
money
Other costs 98,760,535.60 2.56% 113,484,834.62 3.04% -12.97%
Total 100.00% 100.00% 3.43%
(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 VIII.
(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) 5,913,520,602.15
Total sales to top five customers as a % of total sales
of the Reporting Period (%)
Total sales to related parties among top five
customers as a % of total sales of the Reporting 0.00%
Period (%)
Top five customers:
Sales revenue
As a % of total sales
No. Customer contributed for the
revenue (%)
Reporting Period (RMB)
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Total -- 5,913,520,602.15 37.03%
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 2,886,519,048.14
Total purchases from top five suppliers as a % of total
purchases of the Reporting Period (%)
Total purchases from related parties among top five
suppliers as a % of total purchases of the Reporting 0.00%
Period (%)
Top five suppliers:
Purchase in the As a % of total purchases
No. Supplier
Reporting Period (RMB) (%)
Total -- 2,886,519,048.14 74.89%
Other information about major suppliers:
□ Applicable ? Not applicable
Indicate whether the Company’s trading revenue accounted for more than 10% of its total operating
revenue during the Reporting Period.
□ Applicable ? Not applicable
Unit: RMB
Change
(%)
Distribution and 7,760,460,477.3 Decreased Internet traffic charges
selling expenses 4 during the Reporting Period
As the Company’s operating results
failed to meet the appraisal
indicators in the third appraisal
General and period of the Fourth Employee
administrative 551,937,933.80 515,515,048.85 7.07% Stock Ownership Plan, the share-
expenses based payments recognized for
last year, with no comparable
impact during the current period.
Financial expenses -151,094,474.42 -161,323,359.39 6.34%
Research and 685,582,678.82 646,356,784.55 6.07%
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
development
expenses
? Applicable □ Not applicable
Expected impact
Major R&D project Purpose Progress Specific objectives
on the Company
To further enhance
the R&D capacity,
To enrich the strengthen the
Under To become a quality SLG of
Huang Mo Sha product matrix and capability to
develop an American cartoon
Zhou (荒漠沙舟) improve product develop quality
ment survival theme
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Under
Code YCSLG (代号 product matrix and To become a quality SLG of capability to
develop
YCSLG) improve product a survival theme develop quality
ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Under
Code KGSLG (代号 product matrix and To become a quality SLG of capability to
develop
KGSLG) improve product a medieval theme develop quality
ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
The Soul Land: Under
product matrix and To become a quality RPG of capability to
Chuan Cheng (斗 develop
improve product a Chibi Xuanhuan style develop quality
罗大陆：传承) ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Xiao Tou Kui Da Under
product matrix and To become a quality RPG of capability to
Mao Xian (小头盔大 develop
improve product a Chibi fantasy style develop quality
冒险) ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
Battle Through the To enrich the
Under strengthen the
Heavens: Dou Di product matrix and To become a quality RPG of
develop capability to
Zhi Lu (斗破苍穹：斗 improve product a Chibi Xuanhuan style
ment develop quality
帝之路) competitiveness
games, and enrich
the diversified
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Under
Code ZXRRPG (代 product matrix and To become a quality RPG of capability to
develop
号 ZXRRPG) improve product a Chibi adventure style develop quality
ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Under
Code MLRPG (代号 product matrix and To become a quality RPG of capability to
develop
MLRPG) improve product a high fantasy style develop quality
ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Under
Code MRRPG (代 product matrix and To become a quality RPG of capability to
develop
号 MRRPG) improve product a Chibi survival theme develop quality
ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Under
Code Hope (代号 product matrix and To become a quality hybrid capability to
develop
Hope) improve product game of a survival theme develop quality
ment
competitiveness games, and enrich
the diversified
product portfolio
To further enhance
the R&D capacity,
To enrich the strengthen the
Under To become a quality gacha
Code FMR ( 代 号 product matrix and capability to
develop SLG of a realistic football
FMR) improve product develop quality
ment theme
competitiveness games, and enrich
the diversified
product portfolio
Details about R&D personnel:
Number of R&D
personnel
R&D personnel as % of
total employees
Educational background of R&D personnel
Bachelor’s degree 1,040 1,000 4.00%
Master’s degree 97 83 16.87%
Junior college and
below
Age structure of R&D personnel
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Below 30 633 658 -3.80%
Over 40 39 19 105.26%
Details about R&D investments:
R&D investments (RMB) 685,582,678.82 646,356,784.55 6.07%
R&D investments as % of
operating revenue
Capitalized R&D
investments (RMB)
Capitalized R&D
investments as % of total 0.00% 0.00% 0.00%
R&D 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:
□ Applicable ? Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
Unit: RMB
Items 2025 2024 Change (%)
Sub-total of cash inflows
from operating activities
Sub-total of cash
outflows used in 14,063,295,226.05 15,273,628,939.95 -7.92%
operating activities
Net cash flows from
operating activities
Sub-total of cash inflows
from investing activities
Sub-total of cash
outflows used in 22,318,490,518.87 20,450,949,186.60 9.13%
investing activities
Net cash flows from
-2,882,896,513.60 -3,408,196,624.12 15.41%
investing activities
Sub-total of cash inflows
from financing activities
Sub-total of cash
outflows used in 6,769,837,782.98 6,022,978,802.14 12.40%
financing activities
Net cash flows from
-691,383,700.00 -792,672,902.14 12.78%
financing activities
Net increase in cash and
-44,479,403.62 -1,199,975,466.22 96.29%
cash equivalents
Explanation of why any of the data above varies significantly on a year-over-year basis:
□ Applicable ? Not applicable
Explanation of why the net cash flows from operating activities varied significantly from the net profit of the
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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 “56. Supplementary information for the cash flow statement” in Note VII of Part VIII.
V Analysis of Non-principal Operations
? Applicable □ Not applicable
Unit: RMB
As % of profit
Amount before income tax Reason/source Recurrent or not
expenses
Mainly due to
dividends during
the period of
holding equity
investments, gains
Investment income 171,770,215.28 5.07% on investments No
from disposal of
equity investments,
and wealth
management
products
Mainly due to
changes in fair
Gain/loss on value of equity
changes in fair -228,090.57 -0.01% investments and No
value wealth
management
products
Impairment losses
Mainly due to on long-term
impairment losses equity investments
Impairment loss on
-8,829,987.25 -0.26% on long-term are not recurrent,
assets
equity investments while impairment
and credit risks losses on credit risks
are recurrent
Mainly due to
Non-operating
income
income
Mainly due to
Non-operating expenditures on
expenses donations and
compensation
Mainly due to
refund of handling
Other income 32,988,176.93 0.97% No
fee for personal
income tax, and
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
other government
grants that are
related to normal
business operations
VI Analysis of Assets and Liabilities
Unit: RMB
December 31, 2025 January 1, 2025 Chan
ge in
As % of As % of perc Reason for any significant
Amount total Amount total enta change
assets assets ge
(%)
Mainly because the
Company increased its
purchases of wealth
management products
and fixed deposits with a
Monetary funds 4,123,545,240.96 18.48% 25.83% term of more than one
year during the Reporting
Period in order to improve
the return on capital,
resulting in a decrease in
working capital
Accounts 1,212,667,677.2 -
receivable 0 1.16%
Mainly due to the
commencement of the
construction project of
the 37 Interactive
Entertainment Global
Business Center building
Inventories 474,948,916.44 2.13% 0.00% 2.13% during the Reporting
Period, and the transfer of
the corresponding land
use rights, which are
planned to be sold in the
future, from intangible
assets to inventories
Investment
properties
Long-term equity
investments
Fixed assets 895,767,572.19 4.01% 5.50% No significant change
No significant change
occurred to this item as a
Construction in percentage of total
progress assets, while the ending
balance was higher than
the beginning balance
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
mainly due to the
commencement of the
construction project of
the 37 Interactive
Entertainment Global
Business Center building
during the Reporting
Period.
Right-of-use assets 10,071,890.44 0.05% 6,566,577.29 0.03% 0.02% No significant change
Mainly due to the
Short-term loans 3,963,827,983.08 17.76% 13.55% 4.21%
Period
Contract liabilities 239,381,006.69 1.07% 244,227,089.06 1.25% No significant change
Lease liabilities 2,452,513.57 0.01% 1,528,614.88 0.01% 0.00% No significant change
Mainly because the
Company increased its
purchases of bank’s
Trading financial 2,249,440,497.5
assets 9
products and structured
deposits during the
Reporting Period
No significant change
occurred to this item as a
percentage of total
assets, while the ending
balance was higher than
the beginning balance
Prepayments 933,533,438.08 4.18% 729,588,626.88 3.73% 0.45%
mainly due to the
increased copyright
payments and royalties
prepayments for the
acquisition of game
products.
Mainly due to the
purchases of bank’s
wealth management
Other non-current 1,037,418,816.3 products with a term of
financial assets 4 more than one year and
the additional equity
investments during the
Reporting Period
Mainly due to the
commencement of the
construction project of
the 37 Interactive
Entertainment Global
Business Center building
Intangible assets 1,384,921,036.69 6.21% 9.65% during the Reporting
Period, and the transfer of
the corresponding land
use rights, which are
planned to be sold in the
future, from intangible
assets to inventories
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Goodwill 1,578,065,048.53 7.07% 8.06% No significant change
Mainly because the
Company increased its
purchases of fixed
Other non-current 2,195,871,744.1
assets 3
more than one year in
order to improve the
return on capital
Accounts payable 1,776,482,556.69 7.96% 8.52% No significant change
Notes payable 944,600,000.00 4.23% 5.33% No significant change
Indicate whether overseas assets account for a higher percentage of total assets.
? Applicable □ Not applicable
Man
age Control Return Material
Asset As % of the
men measures to genera impairme
Asset Source value Location Company’s
t protect asset ted nt risk or
(RMB) equity
mod safety (RMB) not
el
A sound
business
Investme supervision
Hong
Other nts in mechanism
equity overseas and a sound 4.64% No
assets compani risk control
etc.
es mechanism
have been
put in place
A sound
Purchase business
of supervision
Wealth Hong
overseas mechanism
manage 724,475,3 Kong in 11,661,
wealth and a sound 5.35% No
ment 99.76 China, 278.63
manage risk control
products etc.
ment mechanism
products have been
put in place
A sound
business
Income
Hong supervision
from
Kong in mechanism
Monetary investme 1,171,326,
China, and a sound 8.65% No
funds nts and 671.67
Singapor risk control
operatio
e, etc. mechanism
ns
have been
put in place
? Applicable □ Not applicable
Unit: RMB
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Gain/loss Impairme
Cumulati
on fair- nt
ve fair- Purchase Sold in
Beginnin value allowanc
value d in the the Other Ending
Item g changes e made
changes Reporting Reporting changes amount
amount in the in the
through Period Period
Reporting Reporting
equity
Period Period
Financial assets
financial
assets
(exclusive
of
derivativ
e
financial
assets)
- -
equity 217,022,9 428,571.0 180,000.0 195,214,8
investme 72.20 0 0 69.29
nts
non- - -
current 73,603,27 42,885,44
financial 5.22 1.56
assets
Subtotal
- - -
of 3,503,882, 12,983,78 11,131,85 5,298,937,
financial 286.13 3,284.25 8,964.45 283.26
assets
Total of - - -
the 939,490.4 255,823,2 34,270,70
above 5 10.43 8.02
Financial 8,743,696. 711,399.8 976,813.4 9,009,110.
liabilities 60 8 6 18
Contents of other changes:
Other changes were incurred by exchange rate fluctuations, item reclassification, etc.
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes ? No
Item Ending carrying amount (RMB) Reason for restriction
Money frozen by bank and security
Monetary funds 9,608,700.07
deposits
Principals and interest of term deposits
Monetary funds 1,449,230,208.46 with a maturity within one year as
pledges
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Item Ending carrying amount (RMB) Reason for restriction
Principals and interest of term deposits
Non-current assets due within and large-denomination certificates of
one year deposit with a maturity of over one
year (due in 2026) as pledges
Principals and interest of term deposits
and large-denomination certificates of
Other non-current assets 1,643,759,990.71
deposit with a maturity of over one
year as pledges
Total 3,319,787,331.49
VII 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
Relations
hip with Operatin
Principal Registere Total Net Operatin
Name the g Net profit
activity d capital assets assets g profit
Compan revenue
y
Anhui 37 Develop
Jiyu ment of
Network Subsidiar mobile 6,250,000. 2,609,581, 1,688,549, 1,592,110, 728,912,5 687,733,9
Technolo y and 00 360.28 130.52 845.28 14.55 98.45
gy Co., browser
Ltd. games
Interactiv
e Publishin
Entertain g and
ment Subsidiar operatio 10,000,00 16,730,77 4,533,560, 15,965,79 2,649,673, 2,173,864,
(Shangha y n of 0.00 5,110.42 657.54 6,544.76 403.17 205.98
i) mobile
Technolo games
gy Co.,
Ltd.
Subsidiaries obtained or disposed of in the Reporting Period:
? Applicable □ Not applicable
How it was obtained or disposed Effects on the overall operations
Name of subsidiary
of and performance
In line with the Company’s
Shanghai Tuoxiong Network
Acquired in cash strategic planning and helpful for
Technology Co., Ltd.
its business development
In line with the Company’s
Guangzhou Dingtuo Network Acquired by purchasing equity
strategic planning and helpful for
Technology Co., Ltd. interests in its parent company
its business development
Guangzhou Siying Network Acquired by purchasing equity In line with the Company’s
Technology Co., Ltd. interests in its parent company strategic planning and helpful for
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
its business development
No material effects on the overall
G-CONG NETWORK TECHNOLOGY
Transferred operations and performance of
CO. LIMITED
the Company
No material effects on the overall
YOUNG &FUN NETWORK
Transferred operations and performance of
TECHNOLOGY CO.LIMITED
the Company
Other information on principal subsidiaries and joint stock companies:
None.
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. The export of games has
become an important vehicle for cultural "going global", promoting the dissemination and exchange of
Chinese cultural elements worldwide through digital content.
(II) Development strategy and business plan of the Company
Based on the current industry landscape and development trends, the Company will continue to steadily
advance its development strategy of "boutiqueization, diversification, and globalization". It will focus on its
core business tracks, further strengthen its product supply capabilities and publishing and operation system
around key markets such as domestic mini-games and overseas publishing, continue to consolidate its
competitive advantages in the mini-game field, continuously enhance its product presence in overseas
markets, and strive to maintain its leadership in the industry in major markets. With "bringing joy to the world" as
its mission, the Company will continue to provide high-quality and healthy entertainment products for the
public.
The Company will continue to increase investment in research and development, place importance on
the development of the R&D system and the cultivation of R&D talent, and consolidate the development
path of "boutiqueization". By advancing the "integration of R&D and operation" strategy, we continuously
optimized reusable and iterative R&D processes and tool systems, enhancing the level of R&D industrialization
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
and overall efficiency. Also, it will carry out diversification in its offerings through strong self- and externally
developed product pipelines to bring more high-quality games to players.
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. The Company will continue to advance its globalization strategy. While
consolidating key markets, we will steadily expand into emerging markets and enhance the long-term
operational capabilities of our overseas business through refined operations and localized content strategies.
At the same time, the Company will explore integrating elements of China's outstanding traditional culture into
appropriate themes and content expression, and, using games as a digital medium, enhance overseas users'
understanding and appreciation of Chinese culture.
technologies
The Company continues to monitor the development of frontier technologies such as AI, adheres to a
practical business value-oriented approach, and steadily advances the implementation of AI technology in
research and development, operations, management, and other processes. We elevate AI applications from
helping "individuals" improve productivity in the past to the "organizational" level, transform workflows through
AI, deepen AI's practical effects in improving efficiency, optimizing quality, and supporting decision-making,
use application results in real business scenarios as the evaluation standard, and promote the accumulation
and reuse of proven experience. On this basis, the Company will combine the development of its principal
businesses with its technological capabilities, prudently explore extended applications of its validated AI
capabilities, promote the transformation of mature capabilities across broader scenarios under the premise of
compliance, and cultivate new room for long-term value growth. In the future, the Company will continue to
build on its existing principal businesses, core R&D capabilities, and industrial ecosystem layout, focus on the
integration of emerging technologies and industries, deepen its principal businesses, broaden its AI capabilities,
and become a technology-driven technology enterprise.
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 moat. 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. Going forward, 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.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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) Risks 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.
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. Failure to sustain strong competitive advantages in gameplay innovation, content quality, publishing,
promotion and operational performance may adversely affect the Company’s operating results and
sustainability.
In response, the Company will continue to implement the strategy of "boutiqueization, diversification and
globalization" to steadily enhance its core competitiveness. On one hand, the Company will maintain
continuous investment in self-developed games and keep pace with technological trends industrywide. It will
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
pursue innovative exploration in multiple dimensions including product creativity, gameplay, themes, art
design and technologies. Meanwhile, by cooperating with outstanding developers, the Company will enrich
the quality game offerings, expand game categories through a combined model of self-development and
agency, and consolidate the competitive edge of “integration of R&D and operation”. On the other hand,
the Company will steadily advance its overseas market presence. Leveraging its mature overseas experience,
it carries out diversified deployment in key overseas markets, deepens its presence in core categories and
expands its player base. In addition, the Company will continuously strengthen operational data analysis
capabilities, dynamically optimize product operation strategies and R&D directions, improve refined operation
and the long-term service mechanism, and elevate digital marketing and operation and management
capabilities, so as to enhance overall market competitiveness. Facing the current competition landscape in
the industry, leading enterprises possess prominent advantages in technological R&D, channel operation,
product promotion, player base and market share. The Company will further solidify its competitive edges,
proactively respond to industrywide changes, mitigate market competition risks and seize market opportunities.
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 operations.
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 Interactive Entertainment Learning and Development Center” to provide sufficient training
and learning opportunities for employees and help them grow rapidly. The Company actively carried out
training for newcomers and professional abilities such as "Marathon Leadership Training Camp", "Huangpu
New Army", "X+ Plan" and "37TALK", promoted talent upgrading to meet the needs of business upgrading, paid
attention to internal sharing, established a team of internal professional lecturers among employees, spread
culture of sharing, built a talent echelon and upgraded talent development system.
Centering on the cultural philosophy of "health, happiness and sustainability", the Company upgraded its
diverse welfare system, strengthened employee care and promoted talent retention. The diverse welfare
system encompasses interest-free housing loans, employee charity funds, commercial insurance, and
employee health management services. The Company has launched the “Newborn Initiative”, under which a
childbirth fund of RMB20,000 per child is 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 on holidays,
annual physical examination, singles' fellowship, "Family Day", "Boss Face-to-Face", "37 Battle Talk", "Carnival",
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
“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, covering “Super Runners”, e-sports, table games, dancing,
badminton, footfall and yoga, created cultural atmosphere that meets the characteristics of the younger
generation, strengthened employees' sense of belonging, balanced employees' work and life, and took care
of employees' physical and mental health in various forms.
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.
IX Communications with the Investment Community such as Researches, Inquiries
and Interviews during the Reporting Period
? Applicable □ Not applicable
Main
discussions
Way of Type of the and Index to the
Communicatio
Date Place communic communicat materials relevant
n party
ation ion party provided by information
the
Company
Investors at the
Company’s Log Sheet of
Online
communic
Online Report Online Company’s Relations
May 6, 2025 ation via Other
meeting Roadshow fundamental Activities
an Internet
through the s (No. 2025-
platform
Quanjing 001)
platform
Investors at the
Company’s
Online
Province Listed About the Investor
communic
September Online Companies Company’s Relations
ation via Other
an Internet
Online Investor s (No. 2025-
platform
Day through 002)
the Quanjing
platform
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
X 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
Indicate whether the Company has disclosed any valuation enhancement plan.
□ 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.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Part IV Environmental, Social and Governance Information
I Corporate Governance Overview
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, in conjunction with the Company’s Articles of Association, the Rules of
Procedure for Meetings of Shareholders, and the Rules of Procedure for the Board of Directors, the Company
has been improving its corporate governance structure. It has put in place sound internal management and
control systems, and strengthened information disclosure to promote further improvements in compliance and
governance.
During the Reporting Period, in accordance with applicable laws and regulations and its actual situation,
the Company revised its Articles of Association, Rules of Procedure for Meetings of Shareholders, Rules of
Procedure for the Board of Directors, Work Rules for the Strategy Committee, Work Rules for the Remuneration
and Appraisal Committee, Work Rules for the Nomination Committee, Work Rules for the Audit Committee,
Rules for Independent Directors, Rules for Special Meetings of Independent Directors, Work Rules for General
Manager, Work Rules for Board Secretary, Work Rules for Annual Reports, Rules for Insider Registration and
Management, Rules for the Accountability of Major Errors in Annual Report Disclosure, Rules for the Internal
Reporting of Significant Events, Rules for Investor Relations Management, Rules for Information Disclosure Affairs
Management, Rules for the Appointment of Accounting Firm, Rules for Internal Audit, and Rules for Foreign
Exchange Hedging Management. In addition, it abolished its Supervisory Committee; repealed its Rules of
Procedure for the Supervisory Committee, Rules for Insider Reporting, Management Rules for External
Information Reporting and Use, and Work Rules for Receiving Specific Entities for Research or Interview
Purposes; and newly established the Management Rules for the Departure of Directors and Senior
Management, and the Rules for Market Value Management. All these efforts have further promoted
compliance in the Company's operation, safeguarded the legitimate rights and interests of the Company and
its shareholders, improved internal management mechanisms, and promoted the healthy and sustainable
development of the Company.
During 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 meeting of shareholders
The Company convenes and holds 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 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.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
(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 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 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 meeting of shareholders. The controlling shareholder does not have any occupation of the
Company's funds, nor does Company provide 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, Guideline 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 meetings 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) 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.
(V) 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
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
parties to promote its sustainable and sound development with them.
(VI) 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.
(VII) Internal audit system
The Company has put in place an internal audit system, set up an Internal Audit Department and
employed full-time auditors, who 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.
(VIII) 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.
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.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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 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 meetings of
shareholders or the Board of Directors 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.
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.
The Company has established and improved the meetings of shareholders, the Board of Directors, the
management team headed by the General Manager and some other bodies, as well as the corresponding
rules of procedure and work rules, 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.
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
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
IV Directors and Senior Management
Begin Incre Decr Other Endin
Reas
ning ase in ease incre g
Incu Start End ons
share the in the ase/d share
Nam Gend Offic mben of of for
Age holdi perio perio ecre holdi
e er e title t/For tenur tenur share
ng d d ase ng
mer e e chan
(shar (shar (shar (shar (shar
ges
e) e) e) e) e)
Chair Janu
Li Incu July 323,2 323,2
man ary
Weiw Male 48 mben 16, 28,31 28,31
of the 20,
ei t 2028 9 9
Board 2015
Vice
Chair Incu July July
man mben 5, 16,
Zeng of the t 2019 2028 246,4 246,4
Kaitia Male 50 Board 74,07 74,07
n Gene 4 4
Incu July July
ral
mben 17, 16,
Mang
t 2025 2028
er
Vice
Septe
Hu Chair Incu July 201,5 201,5
mber
Yuha Male 49 man mben 16, 97,68 97,68
ng of the t 2028 4 4
Board
Incu July July
Direct
mben 17, 16,
or
t 2025 2028
Chief
Octo
Finan Incu July
ber
Ye cial mben 16,
Male 42 12,
Wei Offic t 2028
er
Febru
Board Janu
Form ary
Secre ary 6,
er 12,
tary 2017
Empl
oyee
Direct
or
and Incu July July
Depu mben 17, 16,
Chen Fema ty t 2025 2028
g Lin le Gene
ral
Mana
ger
Nove July
Super Form
mber 17,
visor er
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Indep
ende Incu Marc July
Lu Rui Male 50 nt mben h 24, 16,
Direct t 2022 2028
or
Indep
ende Incu Marc July
Tao
Male 45 nt mben h 24, 16,
Feng
Direct t 2022 2028
or
Indep
ende Incu July July
Xie
Male 48 nt mben 17, 16,
Huijia
Direct t 2025 2028
or
Indep
Fang ende Incu July July
Xiaoj Male 52 nt mben 17, 16,
un Direct t 2025 2028
or
Febru
Board Incu July
Wan ary
Male 34 Secre mben 16,
g Sijie 12,
tary t 2028
Gene
Xu May July
ral Form 38,99 38,99
Zhiga Male 47 23, 17,
Mana er 6,974 6,974
o 2023 2025
ger
Direct
or
and
Janu
Depu July
Yang Form ary 2,100, 2,100,
Male 46 ty 17,
Jun er 20, 000 000
Gene 2025
ral
Mana
ger
Direct
or
and
Depu Marc July
Liu Form 5,296, 5,296,
Male 45 ty h 24, 17,
Jun er 801 801
Gene 2022 2025
ral
Mana
ger
Indep
Dece
ende July
Li Form mber
Male 57 nt 17,
Yang er 24,
Direct 2025
or
Indep Dece
July
Ye ende Form mber
Male 50 17,
Xin nt er 24,
Direct 2019
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
or
Chair
man
of the Dece
July
He Super Form mber 10,00 10,00
Male 44 17,
Yang visory er 27, 0 0
Com 2018
mitte
e
Janu
Liu July
Fema Super Form ary
Feng 48 17,
le visor er 20,
yong 2025
Depu
ty Janu Febru
Zhu
Gene Form ary ary
Huai Male 43
ral er 21, 12,
min
Mana 2019 2026
ger
Total -- -- -- -- -- -- 93,85 0 0 03,85 --
Indicate whether any director or senior management resigned before the expiry of their tenures during the
Reporting Period.
? Yes □ No
On July 17, 2025, the Company completed the re-election of its Seventh Board of Directors. Due to the
expiration of their terms, Mr. Xu Zhigao no longer serves as the Company's General Manager; Mr. Yang Jun
and Mr. Liu Jun no longer serve as Directors and Vice General Managers of the Company; Mr. Li Yang and
Mr. Ye Xin no longer serve as Independent Directors of the Company; Mr. He Yang no longer serves as the
Chairman of the Company's Supervisory Committee, and Ms. Cheng Lin and Ms. Liu Fengyong no longer
serve as Supervisors of the Company.
Changes of directors and senior management:
? Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Ye Wei Director Elected July 17, 2025 Change of term
Cheng Lin Employee Director Elected July 17, 2025 Change of term
Independent
Xie Huijia Elected July 17, 2025 Change of term
Director
Independent
Fang Xiaojun Elected July 17, 2025 Change of term
Director
Zeng Kaitian General Manager Appointed July 17, 2025 Change of term
Deputy General
Cheng Lin Appointed July 17, 2025 Change of term
Manager
Resignation upon
Xu Zhigao General Manager July 17, 2025 Change of term
expiration of term
Director and
Resignation upon
Yang Jun Deputy General July 17, 2025 Change of term
expiration of term
Manager
Director and
Resignation upon
Liu Jun Deputy General July 17, 2025 Change of term
expiration of term
Manager
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Independent Resignation upon
Li Yang July 17, 2025 Change of term
Director expiration of term
Independent Resignation upon
Ye Xin July 17, 2025 Change of term
Director expiration of term
Chairman of the
Resignation upon
He Yang Supervisory July 17, 2025 Change of term
expiration of term
Committee
Resignation upon
Cheng Lin Supervisor July 17, 2025 Change of term
expiration of term
Resignation upon
Liu Fengyong Supervisor July 17, 2025 Change of term
expiration of term
Deputy General
Zhu Huaimin Resignation February 12, 2026 Personal reasons
Manager
Ye Wei Board Secretary Resignation February 12, 2026 Personal reasons
Wang Sijie Board Secretary Appointed February 12, 2026 Job transfer
Professional backgrounds, major work experience and current posts in the Company of the incumbent
directors and senior management:
Mr. Li Weiwei, born in 1977, is a Chinese national. He is a member of the Communist Party of China 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., then Sina Corporation, and then Guangzhou
Haiyan Network Technology Co., Ltd. From October 2011 to March 18, 2015, he served as Executive Director
and General Manager of 37 Interactive Entertainment (Shanghai) Technology Co., Ltd. From January 20,
Technology Group Co., Ltd. From August 24, 2015 to May 24, 2023, he served as General Manager of 37
Interactive Entertainment Network Technology Group Co., Ltd. On January 20, 2015, he became Director of
served as Chairman of the Board of 37 Interactive Entertainment Network Technology Group Co., Ltd.
Mr. Zeng Kaitian, born in 1975, is a Chinese national with Han ethnicity. He received an EMBA degree
from China Europe International Business School. And he has no right of permanent residence in a foreign
country. 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. From July 5, 2019, he became Director and
then Vice Chairman of the Board of 37 Interactive Entertainment Network Technology Group Co., Ltd. And
since July 17, 2025, Mr. Zeng has served as General Manager of 37 Interactive Entertainment Network
Technology Group Co., Ltd.
Mr. Hu Yuhang, born in 1976, is a Chinese national. 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
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
and project management. On September 16, 2020, he became Director of 37 Interactive Entertainment
Network Technology Group Co., Ltd. And since March 24, 2022, Mr. Hu has served as Vice Chairman of the
Board of 37 Interactive Entertainment Network Technology Group Co., Ltd.
Mr. Ye Wei, born in 1983, is a Chinese national. He is a member of the Communist Party of China. Mr. Ye
graduated from Guangdong University of Foreign Studies and is currently pursuing an EMBA at Tsinghua
University's PBC School of Finance. He is a Certified Public Accountant in China. He has no right of
permanent residence in a foreign country. 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. From March 30, 2015 to March 31, 2016, he was Chief
Financial Officer of Wuhu 37 Interactive Entertainment Network Technology Group Co., Ltd. From January 6,
Group Co., Ltd. Since October 12, 2016, Mr. Ye has served as Chief Financial Officer of 37 Interactive
Entertainment Network Technology Group Co., Ltd. And since July 17, 2025, he has served as Director of 37
Interactive Entertainment Network Technology Group Co., Ltd.
Ms. Cheng Lin, born in 1982, is a Chinese national with Han ethnicity. She is working on an EMBA program
at Lingnan College, Sun Yat-sen University. She has no right of permanent residence in a foreign country.
From 2011 to 2016, she was Director of Public Affairs of 37 Interactive Entertainment (Shanghai) Technology
Co., Ltd. From November 27, 2015 to July 17, 2025, she was Shareholder Supervisor of 37 Interactive
Entertainment Network Technology Group Co., Ltd. And since July 17, 2025, Ms. Cheng has served as
Employee Director and Deputy General Manager of 37 Interactive Entertainment Network Technology
Group Co., Ltd.
Mr. Lu Rui, born in 1975, is a Chinese national with Han ethnicity. He 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 Professor and Doctoral Supervisor in the Accounting Department, School of
Business, Sun Yat-sen University. From July 1996 to August 2003, he served successively as Teaching Assistant
and Lecturer in the Department of Finance and Accounting, Guangzhou Finance and Trade Management
Cadre Institute; from July 2006 to December 2008, he worked as Lecturer at Lingnan (University) College, Sun
Yat-sen University; from January 2009 to June 2016, he was Associate Professor at Lingnan (University)
College, Sun Yat-sen University; from July 2016 to December 2021, he became Professor and Doctoral
Supervisor at Lingnan (University) College, Sun Yat-sen University; since January 2022, he has served as
Professor and Doctoral Supervisor at School of Business, Sun Yat-sen University. From April 2010 to July 2018,
he was Independent Director of Guangzhou GCI Science & Technology Co. Ltd.; from July 2011 to January
he was Independent Director of Xilong Scientific Co., Ltd; from December 2015 to October 2021, he was
Independent Director of Foshan Electrical and Lighting Co., Ltd.; from April 2015 to December 2018, he was
Independent Director of Guangzhou Huayuan Landscape Architecture Co., Ltd.; from April 2016 to March
concurrently held the posts of Director and General Manager of Sun Yat-sen University Zijing Education Co.,
Ltd., Guangzhou; from August 2019 to October 2021, he was Independent Director of Huabang Construction
and Investment Group Co., Ltd.; from September 2019 to September 2022, he was Independent Director of
Shenzhen Kingsino Technology Co., ltd.; from May 2017 to May 2023, he was Independent Director of
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Guangzhou Goaland Energy Conservation Tech Co., Ltd.; from April 2019 to November 2025, he was
Independent Director of Bank of Guangzhou Co., Ltd.; since May 2020, he has been Independent Director
of PSBC Consumer Finance Co., Ltd.; since November 2021, he has been Independent Director of
Guangzhou Resource Environmental Protection Technology Co., ltd.; and since March 24, 2022, he has
served as Independent Director of 37 Interactive Entertainment Network Technology Group Co., Ltd.
Mr. Tao Feng, born in 1980, is a Chinese national with Han ethnicity. He 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 Director of Institute of
Industrial Economics, Jinan University, Deputy Director of “the Belt and Road Initiative” and the Guangdong-
Hong Kong-Macao Greater Bay Area Research Institute, Chief Expert of JNU’s Urban High-Quality
Development Research Think Tank, Doctoral Supervisor, Executive Dean of the School of Private Economy,
Director of the Guangdong Industrial Development and Guangdong-Hong Kong-Macao Regional
Cooperation Research Center, and Director of the Guangdong-Hong Kong-Macao Greater Bay Area
Modern Industrial System Research Center. Since 2020, he has held concurrent posts of Executive Director of
the China Society of Industrial Economics and Vice Chairman of the Guangdong Economic Society; from
February 2021 to June 2023, he was Independent Director of Guangxi Bossco Environmental Protection
Technology Co., Ltd.; since May 17, 2024, he has served as Independent Director of Guangdong Baolihua
New Energy Stock Co., Ltd.; and since March 24, 2022, he has served as Independent Director of 37
Interactive Entertainment Network Technology Group Co., Ltd.
Mr. Xie Huijia, born in 1978, is a Chinese national with Han ethnicity. He has no right of permanent
residence in a foreign country. From September 1997 to June 2004, he successively obtained a Bachelor of
Laws, a Master of Laws, and a Doctor of Management degree from Huazhong University of Science and
Technology, and holds an independent director qualification certificate. From February 2011 to February
University and Drake University in the United States. He currently serves as Deputy Dean of the Law School
and Intellectual Property School, professor, doctoral supervisor, and head of the Intellectual Property
discipline at South China University of Technology. He also serves concurrently as a legislative consulting
advisor for the People's Government of Guangdong Province, part-time legal advisor for the People's
Government of Guangzhou Municipality, legal advisor for the Guangdong Basic and Applied Basic
Research Foundation Committee, member of the Expert Advisory Committee of the Guangzhou Intellectual
Property Court, expert member of the Guangzhou Expert Advisory Group on Property Rights Protection,
judicial supervision expert member of the Internal and Judicial Affairs Committee of the Guangzhou
Municipal People's Congress, executive council member of the China Law Association on Science and
Technology, Vice President of Guangdong Law Society Intellectual Property Law Research Association,
arbitrator of the Guangzhou Arbitration Commission, and arbitrator of the Shenzhen Court of International
Arbitration. He has served as Independent Director of 37 Interactive Entertainment Network Technology
Group Co., Ltd. since July 17, 2025.
Mr. Fang Xiaojun, born in 1974, is a Chinese national with Han ethnicity. He has no right of permanent
residence in a foreign country. He holds a Ph. D. in Management from Nanjing Agricultural University, and an
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
EMBA from Cheung Kong Graduate School of Business, is a Senior Economist, and holds an independent
director qualification certificate. He served as a lecturer at the Business School of Renmin University of China
from September 2003 to April 2005, and then as a senior supervisor at China National Petroleum Corporation
from April 2005 to September 2005. From September 2005 to May 2016, he held various positions at the State
Power Investment Corporation (SPIC), including Deputy General Manager and General Manager in its Fund
Settlement and Management Center, finance company, and capital holding company, as well as senior
executive roles in its futures company, trust company, and financial leasing company. From June 2016 to
September 2017, he was President of HD Capital. Concurrently, he served as Independent Director of Tianjin
LVYIN Landscape & Ecological Construction Co., Ltd. from December 2016 to February 2021, Independent
Director of Guangdong Kennede Electronics MFG. Co., Ltd. from April 2017 to March 2020; and Director of
Henan SF Diamond Co., Ltd. from October 2017 to February 2020. From March 2020 to February 2021, he
served as Assistant President of Bank of Tangshan, followed by a role as Head of the Investment Department
at China Chengtong Tongying Fund from March 2021 to August 2023. From June 2023 to present, he has
served as a Director of Kennede Electronics Mfg. Co., Ltd. From August 2023 to July 31, 2025, he was Vice
President of China Power Investment New Agricultural Innovation Technology Co., Ltd. From April 2024 to
April 2025, he acted as Chairman and General Manager of China Power Investment New Agriculture &
Innovation (Beijing) Supply Chain Management Co., Ltd. Since September 3, 2025, he has been Chairman of
Huatong Oil Services (Beijing) International Energy Co., Ltd. Since September 19, 2025, he has been
Chairman of Beijing Hengxing Guotai Health Industry Investment and Operation Management Co., Ltd. He
has served as Independent Director of 37 Interactive Entertainment Network Technology Group Co., Ltd.
since July 17, 2025.
Mr. Wang Sijie, born in 1992, is a Chinese national with Han ethnicity. He has no right of permanent
residence in a foreign country. He holds a bachelor's degree, possesses the Chinese legal professional
qualification, and is a Certified Intermediate Accountant. He also holds the Board Secretary Qualification
Certificate issued by both the Shenzhen Stock Exchange and the Shanghai Stock Exchange. He previously
served as Deputy Manager of the Securities Department of Lawton Development Co., Ltd. From December
Group Co., Ltd. Since February 12, 2026, he has served as Board Secretary of 37 Interactive Entertainment
Network Technology Group Co., Ltd.
Indicate whether the controlling shareholder or the actual controller concurrently serves as the Chairman of
the Board or the General Manager of the Company.
□ Applicable ? Not applicable
Offices held concurrently in shareholding entities:
□ Applicable ? Not applicable
Offices held concurrently in other entities:
? Applicable □ Not applicable
Office held in Paid by the
Name Other entity Start of tenure End of tenure
the entity entity or not
The School of
Professor and
Business of Sun
Lu Rui Doctorate January 1, 2022 Yes
Yat-Sen
Supervisor
University
Tao Feng The Institute of Dean and January 1, 2020 Yes
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Industrial Doctorate
Economics of Supervisor
the Jinan
University
Law School, Vice Dean,
South China Professor,
Xie Huijia July 31, 2023 Yes
University of Doctoral
Technology Supervisor
China Power
Investment
New
Fang Xiaojun Agricultural Vice President August 1, 2023 Yes
Innovation
Technology
Co., Ltd.
Other
Not applicable
information
Punishments imposed in the recent three years by the securities regulator on the incumbent directors and
senior management as well as those who resigned in the Reporting Period:
? Applicable □ Not applicable
Penalty Decision ([2025] No. 146) issued by the China Securities Regulatory Commission, which issued
warnings and imposed fines on the Company and relevant responsible persons including Mr. Li Weiwei, Mr.
Zeng Kaitian, Mr. Hu Yuhang, Mr. Yang Jun, Mr. Ye Wei, and Ms. Wu Weihong. For further information, please
refer to the Announcement on the Receipt of the Administrative Penalty Decision by the Company and
Relevant Responsible Persons disclosed by the Company on China Securities Journal, Shanghai Securities
News, Securities Times, Securities Daily, and http://www.cninfo.com.cn.
Disciplinary Sanctions against 37 Interactive Entertainment Network Technology Group Co., Ltd. and
Relevant Responsible Persons (Shen Zheng Shang [2025] No. 1340) issued by the Shenzhen Stock Exchange,
which issued a decision to publicly censure the Company and relevant responsible persons including Mr. Li
Weiwei, Mr. Zeng Kaitian, Ms. Wu Weihong, Mr. Yang Jun, and Mr. Ye Wei; and a decision to issue a notice of
criticism to Mr. Hu Yuhang.
Letters to Zhang Yun, Chen Xialin, Yin Bin, Zhu Ning, and Others ([2025] No. 76) issued by the Anhui
Regulatory Bureau of the China Securities Regulatory Commission. This decision imposed administrative
regulatory measures of issuing warning letters on Mr. Zhang Yun, Mr. Chen Xialin, Mr. Yin Bin, Mr. Zhu Ning, Mr.
Ni Ning, Mr. Chen Jianlin, Mr. Ye Xin, Mr. Liu Guangqiang, Mr. Li Yang, Mr. He Yang, Ms. Cheng Lin, Ms. Liu
Fengyong, and Mr. Zhu Huaimin, and recorded these measures in the securities and futures market integrity
files. For further information, please refer to the Announcement on Relevant Personnel of the Company
Receiving Warning Letters from CSRC Anhui disclosed by the Company on China Securities Journal,
Shanghai Securities News, Securities Times, Securities Daily, and http://www.cninfo.com.cn.
Zhang Yun, Chen Xialin, Yin Bin, Zhu Ning, Ni Ning, Chen Jianlin, Ye Xin, Liu Guangqiang, Li Yang, He Yang,
Cheng Lin, Liu Fengyong, and Zhu Huaimin (Company Department Regulatory Letter [2025] No. 207) issued
by the Shenzhen Stock Exchange, which imposed regulatory measures against Mr. Zhang Yun, Mr. Chen
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Xialin, Mr. Yin Bin, Mr. Zhu Ning, Mr. Ni Ning, Mr. Chen Jianlin, Mr. Ye Xin, Mr. Liu Guangqiang, Mr. Li Yang, Mr.
He Yang, Ms. Cheng Lin, Ms. Liu Fengyong, and Mr. Zhu Huaimin by issuing regulatory letters.
Decision-making procedure, determination basis and actual payments of remuneration for directors and
senior management:
(1) Procedure for determining the remunerations of directors and senior management: The Remuneration
and Performance Appraisal Committee of the Company's Board of Directors formulates the policy and plan
for compensating the Company's directors and senior management. The remunerations of directors are
reviewed and approved by the 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 Appraisal Committee to implement the remuneration
plan for the Company's directors and senior management.
(2) Criteria for determining the remunerations of directors and senior management: The remunerations of
directors 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 and senior management: The remunerations of independent
directors are paid semiannually to their personal accounts as scheduled. The remunerations of other directors
and senior management are determined based on the results of their performance appraisal and are paid
monthly or as scheduled in the remuneration payment system.
Remuneration of directors and senior management for the Reporting Period:
Unit: RMB'0,000
Total before-
tax Paid by any
Incumbent/F
Name Gender Age Office title remuneratio related party
ormer
n from the or not
Company
Chairman of
Li Weiwei Male 48 Incumbent 955.51 No
the Board
Vice
Chairman of
Zeng Kaitian Male 50 the Board Incumbent 1,140.17 No
and General
Manager
Vice
Hu Yuhang Male 49 Chairman of Incumbent 959.07 No
the Board
Director and
Ye Wei Male 42 Chief Incumbent 483.34 No
Financial
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Officer
Employee
Director and
Cheng Lin Female 43 Deputy Incumbent 377 No
General
Manager
Independent
Lu Rui Male 50 Incumbent 30 No
Director
Independent
Tao Feng Male 45 Incumbent 30 No
Director
Independent
Xie Huijia Male 48 Incumbent 15 No
Director
Independent
Fang Xiaojun Male 52 Incumbent 15 No
Director
General
Xu Zhigao Male 47 Former 282.18 No
Manager
Director and
Deputy
Yang Jun Male 46 Former 1,131.69 No
General
Manager
Director and
Deputy
Liu Jun Male 45 Former 103.73 No
General
Manager
Independent
Li Yang Male 57 Former 15 No
Director
Independent
Ye Xin Male 50 Former 15 No
Director
Chairman of
the
He Yang Male 44 Former 91.17 No
Supervisory
Committee
Liu Fengyong Female 48 Supervisor Former 36.14 No
Deputy
Zhu Huaimin Male 43 General Former 438.66 No
Manager
Total -- -- -- -- 6,118.66 --
The remunerations of directors are determined
based on the operational performance of the
Company and the current market conditions. The
remunerations of senior management are
Performance appraisal basis for the actual determined according to the Company's relevant
remuneration received by all directors and senior regulations, taking into account the overall
management at the end of the Reporting Period 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.
Independent directors' allowances are not subject
to performance appraisal; non-independent
Performance appraisal for the actual remuneration directors and senior management receive
received by all directors and senior management at corresponding remunerations in accordance with
the end of the Reporting Period the Company's performance appraisal rules.
Performance appraisals are conducted and
completed effectively in accordance with the
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Company's performance appraisal rules.
Deferred payment arrangements for the actual
remuneration received by all directors and senior None
management at the end of the Reporting Period
Payment termination and recovery of the actual
remuneration received by all directors and senior None
management at the end of the Reporting Period
Other information:
□ Applicable ? Not applicable
V Duty Performance by Directors during the Reporting Period
Attendance of directors at board meetings and meetings of shareholders
Total
The
number of
Board Board director
board Board Meetings
Board meetings meetings failed to
meetings meetings of
meetings attended the attend two
Director the attended shareholde
attended by way of director consecutiv
director through a rs
on site telecomm failed to e board
was proxy attended
unication attend meetings
supposed
or not
to attend
Li Weiwei 9 9 0 0 0 No 2
Zeng
Kaitian
Hu Yuhang 9 9 0 0 0 No 2
Yang Jun 5 5 0 0 0 No 2
Liu Jun 5 5 0 0 0 No 2
Ye Wei 4 4 0 0 0 No 2
Cheng Lin 4 4 0 0 0 No 2
Li Yang 5 0 5 0 0 No 2
Ye Xin 5 0 5 0 0 No 2
Lu Rui 9 0 9 0 0 No 2
Tao Feng 9 0 9 0 0 No 2
Xie Huijia 4 1 3 0 0 No 1
Fang
Xiaojun
Explanation of why any director failed to attend two consecutive board meetings:
None.
Indicate whether any directors raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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.
VI Duty Performance by Special Committees under the Board of Directors during
the Reporting Period
Other
Substa
Numb inform Particu
ntial
er of ation lars
opinio
Committe meetin Date of on about
Members Topic of meeting n and
e gs meeting duty objecti
recom
conve perfor ons (if
mend
ned manc any)
ations
e
which the independent
auditor had issued the
Chairman: preliminary audit opinion
Lu Rui were reviewed.
Audit
Committe
Other March and Q1 2025 Work Plan of the
e of the members: 3 None None
Sixth Board Li Weiwei Department was reviewed.
of Directors and Tao 3. The 2024 Annual Work
Feng Summary and 2025 Annual
Work Plan of the Internal
Control and Audit
Department was reviewed.
was reviewed.
Chairman: 2. The 2024 Final Financial
Lu Rui Accounts Report was
Audit
reviewed.
Committe
Other April 17, 3. The 2024 Internal Control
e of the members: 3 None None
Sixth Board Li Weiwei reviewed.
of Directors and Tao 4. The Proposal on the Re-
Feng appointment of Accounting
Firm was reviewed.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Report of the Internal Control
and Audit Department on
Internal Control was
reviewed.
Chairman:
Lu Rui 1. The 2025 First Quarterly
Audit
Report was reviewed.
Committe
Other April 28, 2. The Q1 2025 Work Summary
e of the members: 3 None None
Sixth Board Li Weiwei Internal Control and Audit
of Directors and Tao Department was reviewed.
Feng
Chairman:
Audit Lu Rui
Committe 1. The Proposal on the
e of the Other July 17, Appointment of Chief
members: 3 None None
Seventh 2025 Financial Officer was
Board of Li Weiwei reviewed.
Directors and Tao
Feng
reviewed.
Chairman: 2. The Q2 2025 Work Summary
Audit Lu Rui
and Q3 2025 Work Plan of the
Committe
Internal Control and Audit
e of the Other August
members: 3 Department was reviewed. None None
Seventh 21, 2025
Li Weiwei 3. The 2025 Interim Special
Board of
and Tao Report of the Internal Control
Directors
Feng and Audit Department on
Internal Control was
reviewed.
Chairman:
Audit Lu Rui 1. The 2025 Third Quarterly
Committe Report was reviewed.
e of the Other October 2. The Q3 2025 Work Summary
members: 3 None None
Seventh 22, 2025 and Q4 2025 Work Plan of the
Board of Li Weiwei Internal Control and Audit
Directors and Tao Department was reviewed.
Feng
Chairman: Remuneration Plan for
Remunerat
Ye Xin Directors of the Seventh
ion and
Board of Directors was
Appraisal
Other June 26, reviewed.
Committe members: 1 None None
e of the Zeng Remuneration Plan for Non-
Sixth Board Kaitian Director Senior Management
of Directors and Lu Rui of the Seventh Board of
Directors was reviewed.
Chairman:
election of Non-Independent
Nominatio Li Yang
Directors of the Seventh
n
Board of Directors was
Committe Other June 26,
e of the members: 2025
Sixth Board Li Weiwei
election of Independent
of Directors and Tao
Directors of the Seventh
Feng
Board of Directors was
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
reviewed.
Appointment of General
Manager was reviewed.
Chairman: 2. The Proposal on the
Nominatio
Xie Huijia Appointment of Deputy
n
General Manager was
Committe
Other July 17, reviewed.
e of the 1 None None
members: 2025 3. The Proposal on the
Seventh
Li Weiwei Appointment of Chief
Board of
and Tao Financial Officer was
Directors
Feng reviewed.
Appointment of Board
Secretary was reviewed.
Chairman:
Strategy Li Weiwei 1. The 2024 Final Dividend
Committe Plan was reviewed.
April 17,
e of the Other 2 2. The Proposal on the 2025 None None
Sixth Board members: Interim Dividend Plan was
of Directors Yang Jun reviewed.
and Ye Xin
Chairman:
Strategy Li Weiwei
Committe
May 12, 1. The 2025 First Quarterly
e of the Other 2 None None
Sixth Board members:
of Directors Yang Jun
and Ye Xin
Chairman:
Li Weiwei
Strategy
Committe
Other
e of the August 1. The 2025 Interim Dividend
members: 2 None None
Seventh 21, 2025 Plan was reviewed.
Zeng
Board of
Kaitian
Directors
and Fang
Xiaojun
Chairman:
Li Weiwei
Strategy
Committe
Other
e of the October 1. The 2025 Third Quarterly
members: 2 None None
Seventh 27, 2025 Dividend Plan was reviewed.
Zeng
Board of
Kaitian
Directors
and Fang
Xiaojun
VII Duty Performance by the Audit Committee
Indicate whether the Audit Committee identified any risk to the Company during its supervision in the
Reporting Period.
□ Yes ? No
The Audit 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.
VIII Employees
Number of in-service employees of the parent at the
period-end
Number of in-service employees of principal
subsidiaries at the period-end
Total number of in-service employees at the period-
end
Total number of paid employees in the Reporting
Period
Number of retirees to whom the parent or its major
subsidiaries need to pay retirement pensions
Functions
Function Employees
Marketing 946
Technical 312
Financial 102
Administrative 36
R&D 1,066
Teaching 115
Operation 242
Others 319
Total 3,138
Educational backgrounds
Educational background Employees
Master’s degree and above 321
Bachelor’s degree 2,178
Junior college and below 639
Total 3,138
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 RMB1,469 million, accounting for
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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 24.31% of the total number of employees, and their remunerations account for 27.93% of the total
amount of employee remunerations.
Our employee training efforts focus on retaining core talent and learning and development. We
customized content around leadership, professional competence, and core general competencies, to bridge
the last mile of training implementation, thereby supporting the development of the Company's talent pipeline
and the appreciation of human capital. We are committed to fostering a company-wide learning
atmosphere, strengthening the mentorship system, and enhancing organizational cohesion. Guided by our
strategic direction, we continuously advance the integration of training and practical application in talent
development, leveraging AI tools to improve training efficiency and developing AI-based learning resources
and productivity tools, thereby serving as a catalyst for talent cultivation, knowledge retention, and
organizational development.
In 2025, the 37 Interactive Entertainment Learning and Development Center focused on "the retention,
learning, and development of core talent", emphasizing the transformation of training into practical
application and behavior change. 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 Leadership Leap Plan (a next-generation leadership training camp), New Employee Leap Plan
(integration for M2-P7 and above newcomers), Talent Insight Plan (for interviewer empowerment), Super
Assistance Plan (for mentor and internal trainer development), X+ Program (training for externally hired
newcomers), “Hello, Future!” Program (training for campus-recruited newcomers), AI Micro-Lesson
Competition and AI Learning Enablement, Co-Creation Workshops for problem-solving in 37Mobile and
training solutions to help solve practical business problems.
? Applicable □ Not applicable
Total hours of labor outsourced 520,552.68
Total payment for labor outsourcing (RMB) 29,970,997.63
IX 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
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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
applicable regulations such as the Guideline No. 3 for Regulation of Listed Companies — Cash Dividend
Payouts by Listed Companies, 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 2024 final dividend plan, the 2025 firstly quarterly
dividend plan, the 2025 interim dividend plan, and the 2025 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 2024 final dividend plan was approved at the 23rd Meeting of the Sixth Board of Directors
and the 2024 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 inclusive) 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 the 2025 Interim Dividend Plan was approved at the 2024 Annual General Meeting of
Shareholders. As such, the Board of Directors was authorized to handle, with full power, all matters related to
the 2025 interim dividend plan.
The Company’s 2025 first quarterly dividend plan was approved at the 25th 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 2025 interim dividend plan was approved at the Second Meeting of the Seventh 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 2025 third quarterly dividend plan was approved at the Fourth Meeting of the Seventh
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 May 21, 2024, May 24, 2024, September 4, 2024,
and November 8, 2024, respectively, representing a total dividend payout amount of RMB2.2 billion (tax
inclusive) in cash.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of
Association and resolution of meeting of Yes
shareholders
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and
Yes
mechanism
Independent directors faithfully performed their
Yes
duties and played their due role
If the Company has no dividend plan, it should
disclose the specific reasons and the next steps it N/A
intends to take to enhance investor returns
Non-controlling shareholders are able to fully
express their opinion and desire and their legal rights Yes
and interests are fully protected
In case of adjusting or changing the cash dividend
policy, the conditions and procedures involved are
N/A
in compliance with 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) 4.00
Share base (share) 2,212,237,681
Cash dividends (RMB) (tax inclusive) 884,895,072.40
Cash dividends in other forms (such as share
repurchase) (RMB)
Total cash dividends (including those in other forms)
(RMB)
Distributable profit (RMB) 4,361,518,405.41
Total cash dividends (including those in other forms)
as % of 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 2025 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 RMB4.00 (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.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
X Establishment and Implementation of Internal Control System 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 has
established a strict internal control management system. During the Reporting Period, taking into account
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.
□ Yes ? No
XI Subsidiary Management during the Reporting Period
Management Solution Subsequent
Subsidiary Progress Problems Solutions
plan progress plan
In strict
accordance
with the Rules
Shanghai
Tuoxiong for the
Management
Network
of Majority-
Technology
Co., Ltd. and owned
other Subsidiaries,
subsidiaries the Company
newly strengthened
included in the guidance and
consolidated compliance
financial with respect to Completed N/A N/A N/A N/A
statements of the subsidiaries
the Reporting newly
Period, see included in the
Note IX consolidated
financial
Changes to
the statements.
Consolidation Under the
authorization
Scope in Part
of the
VIII.
Company, the
subsidiaries
carried out
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
activities and
operated
independently
.
Anomalies found in the management and control of subsidiaries:
□ Yes ? No
XII Internal Control Assessment Report or Internal Control Audit Report
Date of full disclosure of the internal
April 17, 2026
control assessment report
Index of full disclosure of the
http://www.cninfo.com.cn
internal control assessment report
Ratio of the total assets of the
organizations included in the
assessment to the Company's
consolidated total assets
Ratio of the revenue of the
organizations included in the
assessment to the Company's
consolidated revenue
Deficiency identification criteria
Category Financial report Non-financial report
Signs of material deficiencies in The identification of deficiencies
financial report include: (1) Failure of in non-financial reports is mainly
control environment. (2) Misconduct based on the degree of impact
of directors or senior managers. (3) of the deficiencies on the
Major mistakes in current financial effectiveness of business
report which fail to be identified by procedures and the possibility of
the Company's internal control. (4) their occurrence. If the possibility
The supervision of the Audit of the deficiency is relatively low,
Committee and audit department it will reduce the work efficiency
on the Company’s financial report or effectiveness, increase the
and on the internal control over uncertainty of the effectiveness,
internal report is ineffective. Signs of or make the work result deviate
significant deficiencies in financial from the expected goal, the
report include: (1) Failure to choose deficiency is a general
and apply accounting policies deficiency. If the possibility of the
Qualitative criteria according to widely accepted deficiency is relatively high, it will
accounting standards. (2) Failure to significantly reduce the work
establish anti-fraud procedures and efficiency or effectiveness,
control management. (3) Lack of significantly increase the
corresponding control mechanism uncertainty of the effectiveness,
for accounting treatment of or make the work result
unconventional or special significantly deviate from the
transactions or lack of corresponding expected goal, the deficiency is
compensatory control. (4) One or a significant deficiency. If the
more deficiencies in the control of possibility of the deficiency is
the period-end financial reporting relatively high, it will severely
process and failure to reasonably reduce the work efficiency or
ensure true and complete financial effectiveness, severely increase
reports. General deficiencies refer to the uncertainty of the
the control deficiencies other than effectiveness, or make the work
material and significant deficiencies result severely deviate from the
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
mentioned above. expected goal, the deficiency is
a general deficiency.
The Company views 5% of the total
profit as the indicator of overall
importance of its income statement,
and views 5% of net assets as the
indicator of overall importance of its
balance sheet. When a potential
misstatement is larger than or equal The Company views 5% of direct
to 5% of the total profit in the income loss of the Company’s net assets
statement, or a potential as the indicator of importance of
misstatement is larger than or equal non-financial report. When the
to 5% of net assets in the balance direct loss is larger than or equal
sheet, it is considered as a material to 5% of the net assets, it is
deficiency. If a potential considered as a material
Quantitative criteria misstatement is lower than 5% but deficiency. If the direct loss is
larger than or equal to 3% of the total lower than 5% but larger than or
profit in the income statement, or a equal to 3% of the net assets, it is
potential misstatement is lower than considered as a significant
the net assets in the balance sheet, it lower than 3% of the net assets, it
is considered as a significant is considered as a general
deficiency. If a potential deficiency.
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
financial reports
Number of material deficiencies in
non-financial reports
Number of significant deficiencies
in financial reports
Number of significant deficiencies
in non-financial reports
? 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 December 31, 2025, based on the Basic Rules on Enterprise Internal Control and other
applicable regulations.
Report disclosed or not Disclosed
Disclosure date April 17, 2026
Index to the disclosed report http://www.cninfo.com.cn
Type of opinion Unmodified unqualified opinion
Material defects in internal control not related to
No
financial reporting
Indicate whether any modified opinion is expressed in the Internal Control Audit Report.
□ Yes ? No
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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
Indicate whether the Company was issued any modified opinion by the independent auditor on its internal
control for the Reporting Period or last year.
□ Yes ? No
XIII Social Responsibility
During the Reporting Period, the Company donated RMB13.47 million, actively supporting work in rural
revitalization, innovative talent cultivation, ecological and environmental protection, and care for
vulnerable groups, thereby enhancing social well-being.
Leveraging our strengths in AI technology and cultural creativity, we developed an intelligent city
assistant, launched a special edition for the National Games in our games, and produced city-themed
promotional videos, thereby invigorating the vitality of urban culture and tourism. Collaborating with more
than 10 organizations, including government agencies, schools, youth centers, and industry associations, we
organized AI-themed activities for diverse groups such as county-level primary and secondary students, rural
teachers, and urban migrant children, enhancing digital literacy across society. With support from
professional institutions, we developed a wetland conservation-themed educational game, using it to
engage families and volunteers in environmental activities across nine small- and micro-sized wetlands,
promoting ecological awareness. Guided by the Company's Party Committee, 555 employee and Party
volunteers carried out 50 volunteer initiatives, including youth empowerment, care for children with special
needs, and support for vulnerable community members, contributing to the realization of a better life.
The Company has also made active efforts in areas such as technological innovation and development,
cybersecurity, and environmental protection. For detailed measures related to these topics, please refer to
the relevant sections of the Company’s 2025 Environmental, Social and Governance Report.
XIV Efforts in Poverty Alleviation and Rural Revitalization
In 2014, 37 Interactive Entertainment initiated the founding of the Guangdong Youxin Charity
Foundation, continuously supporting the revitalization of county-level high schools and promoting balanced
education development.
During the Reporting Period, the Company, through Guangdong Youxin Charity Foundation's "Youxin
Peers" high school education assistance program, funded 3,567 outstanding county high school students
across nine regions including Anhui, Sichuan, Jiangxi, and Guizhou, helping improve their learning and living
conditions. Additional initiatives included the high school enrollment guarantee program for ethnic minority
girls, the county high school free reading program, the "Vocational Wisdom Calling" career planning
program, and the “Embrace Exploration” Guangzhou Summer Camp. These programs foster innovative
thinking, expand cultural knowledge, and offer support in career development planning to help rural talent
reach their potential.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
The Company also promoted AI literacy in rural areas through its quality education brand Miaocode,
helping bridge the digital divide. Key efforts included offering the "Little Elephant AI" themed public welfare
course to rural students in two regions of Guangdong to build foundational AI awareness and providing AI
teaching application training to teachers from 92 rural primary and secondary schools in Qiannan (Guizhou),
Guangyuan (Sichuan), and other areas, supporting innovative teaching practices using AI tools.
Under the leadership of its Party Committee, the Company actively responded to the "10,000 Enterprises
Revitalize 10,000 Villages" initiative and the "Hundred-Thousand-Ten Thousand Project", proactively exploring
new pathways for digital empowerment and cultural creativity to boost rural specialty products.
During the Reporting Period, the Company applied an innovative triangular framework of "digital
content + agricultural products + global communication" to support the lychee industry. Under the theme of
“The Global Journey of Lychees ( 游 荔 全 球 )”, Lingnan lychee culture was integrated into six globally
published games, including Trading Legend (叫我大掌柜), such as Bonk Bonk Tribe (时光大爆炸), My Memory
Shop ( 时 光 杂 货 店 ), and Nobody's Adventure Chop-Chop ( 寻 道 大 千 ), alongside the release of a lychee-
themed promotional video, engaging hundreds of millions of users with lychee culture. The Company
leveraged the traffic of games to boost lychee sales and support farmers' income growth.
We also supported cross-sector marketing of "Yinghong No. 9" tea, a specialty agricultural product from
Qingyuan, Guangdong, and creatively developed the "Meng Cha Cha" gift box in line with the
consumption preferences of urban young consumers. Through collaboration with our game products, well-
known catering brands, and consumption promotion exhibitions, we helped expand the tea's sales channels.
We supported rural infrastructure construction and maintenance by donating to projects including
street lighting, road maintenance, and the renovation of village service facilities in Wuhu, Anhui, thereby
enhancing villagers' quality of life.
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Part V Share Changes and Shareholder Information
I Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Shares
as
as
dividen
dividen
Num Percent New d Percent
d Other Subtotal Number
ber age (%) issues convert age (%)
convert
ed from
ed from
capital
profit
reserves
shares 44 44 832
by the
government
by state-owned
corporations
by other domestic 70,38 27.65% 28.25%
investors 8
Including:
Shares held by
domestic
corporations
Shares held by 11,608,4 11,608,4 624,878,
domestic natural 44 44 832
persons
by overseas
investors
Including:
Shares held by
overseas
corporations
Shares held by
overseas natural
persons
shares ,593, 17,235,0 17,235,0 8,849
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
denominated ,593, 72.35% 17,235,0 17,235,0 71.75%
common shares 893 44 44
listed foreign
shares
listed foreign
shares
Reasons for share changes:
? Applicable □ Not applicable
thus changed from 2,217,864,281 shares to 2,212,237,681 shares.
Shares of departing directors, supervisors, and senior management were locked up according to applicable
laws, regulations and regulatory documents.
Approval of share changes:
? Applicable □ Not applicable
The Company held the 15th Meeting of the Sixth Board of Directors and the First Extraordinary General
Meeting of Shareholders in 2024 on December 26, 2023 and January 12, 2024, respectively, at which the
Proposal on the Plan to Repurchase the Company's Shares by the Way of Centralized Bidding was
approved. As such, the Company was agreed to use its own funds to repurchase shares by the way of
centralized bidding. The repurchased shares would be retired to reduce the registered capital.
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's total share capital decreased by 5,626,600 shares due to the
share repurchase. 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:
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
□ Applicable ? Not applicable
? Applicable □ Not applicable
Unit: share
Increase Shares
in with
Name of Beginning restricted restrictio Ending
Reason for
sharehold restricted shares in n lifted restricted Lifting date
restriction
er shares the in the shares
Reporting Reportin
Period g Period
Li Weiwei 242,421,239 0 0 242,421,239
Zeng
Kaitian Locked-up
respect of changes in
Hu shares of
Yuhang senior
supervisors and senior
Xu Zhigao 29,247,730 9,749,244 0 38,996,974 manageme
management in the
Yang Jun 1,575,000 525,000 0 2,100,000 nt
Company Law, etc.
Liu Jun 3,972,601 1,324,200 0 5,296,801
He Yang 0 10,000 0 10,000
Total 613,270,388 11,608,444 0 624,878,832 -- --
II Issuance and Listing of Securities
□ Applicable ? Not applicable
? Applicable □ Not applicable
On January 22, 2025, the Company completed the retirement procedures for 5,626,600 repurchased
shares with the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. Following
the retirement, the Company's total share capital decreased from 2,217,864,281 shares to 2,212,237,681
shares, and its registered capital decreased from RMB2,217,864,281 to RMB2,212,237,681.
□ Applicable ? Not applicable
III Shareholders and Actual Controller
Unit: share
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Numb
er of
com
mon
share Number of
holder preferred Number of preferred
s at sharehold shareholders with
Number of the ers with resumed voting rights
common 132,552 mont 166,811 resumed 0 at the month-end 0
shareholders h-end voting prior to the disclosure
prior rights (if of this Report (if any)
to the any) (see (see note 8)
disclo note 8)
sure
of this
Repor
t
Share Increase/ Shares in pledge,
Nature of holdin decrease Restricted Un- marked or frozen
Name of
sharehold g Shares held in the shares restricted
shareholder
er perce Reporting held shares held Status Shares
ntage Period
Domestic
Li Weiwei natural 323,228,319 0 80,807,080
% 9
person
Domestic
Zeng Kaitian natural 246,474,074 0 61,618,519
% 5
person
Domestic In
Hu Yuhang natural 9.11% 201,597,684 0 50,399,421 pledg
person e
Hong Kong Overseas
Securities Clearing corporatio 5.74% 126,887,152 68,347,371 0 126,887,152
Company Ltd. n
China Minsheng
Banking Corp., Ltd.
－China Securities
Cartoon Games
Other 2.70% 59,650,690 27,982,605 0 59,650,690
Exchange Traded
Open-End Index
Securities
Investment Fund
Domestic
Xu Zhigao natural 1.76% 38,996,974 0 38,996,974 0
person
Overseas
Wu Weihong natural 1.59% 35,253,178 0 0 35,253,178
person
Domestic
Wu Weidong natural 1.37% 30,280,057 0 30,280,057
person
Entertainment Other 0.74% 16,301,534 0 0 16,301,534
Network
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Technology Group
Co., Ltd.－The
Fourth Employee
Stock Ownership
Plan
Shanghai Pudong
Development Bank
Co., Ltd.－Guotai
China Securities
Cartoon Games Other 0.69% 15,359,143 6,626,500 0 15,359,143
Exchange Traded
Open-End Index
Securities
Investment Fund
Strategic investor or general
corporation becoming a top-10
N/A
shareholder in a rights issue (if
any) (see note 3)
Related or acting-in-concert are shareholders acting in concert.
parties among the shareholders 2. The Company is not aware of whether there is, among the other top 10
above shareholders, any related parties or acting-in-concert parties as defined in the
Measures on the Administration of Acquisition of Listed Companies.
Explain if any of the shareholders
above was involved in
entrusting/being entrusted with N/A
voting rights or waiving voting
rights
Special account for share
repurchases (if any) among the N/A
top 10 shareholders (see note 10)
Top 10 un-restricted shareholders
Shares by class
Name of shareholder Un-restricted shares held
Class Shares
RMB-
deno
minate
Hong Kong Securities Clearing 126,887,1
Company Ltd. 52
comm
on
shares
RMB-
deno
minate
Li Weiwei 80,807,080 d
comm
on
shares
RMB-
deno
minate
Zeng Kaitian 61,618,519 d
comm
on
shares
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
RMB-
China Minsheng Banking Corp., deno
Ltd.－China Securities Cartoon minate
Games Exchange Traded Open- 59,650,690 d
End Index Securities Investment comm
Fund on
shares
RMB-
deno
minate
Hu Yuhang 50,399,421 d
comm
on
shares
RMB-
deno
minate
Wu Weihong 35,253,178 d
comm
on
shares
RMB-
deno
minate
Wu Weidong 30,280,057 d
comm
on
shares
RMB-
deno
minate
Network Technology Group Co., 16,301,53
Ltd.－The Fourth Employee Stock 4
comm
Ownership Plan
on
shares
RMB-
Shanghai Pudong Development deno
Bank Co., Ltd.－Guotai China minate
Securities Cartoon Games 15,359,143 d
Exchange Traded Open-End comm
Index Securities Investment Fund on
shares
RMB-
Industrial and Commercial Bank
deno
of China Limited－E Fund China
minate
Securities Artificial Intelligence 12,649,79
Theme Exchange Traded Open- 6
comm
End Index Securities Investment
on
Fund
shares
Related or acting-in-concert
parties among the top 10 un-
are shareholders acting in concert.
restricted shareholders, as well as
between the top 10 un-restricted
shareholders, any related parties or acting-in-concert parties as defined in the
shareholders and the top 10
Measures on the Administration of Acquisition of Listed Companies.
shareholders
Related or acting-in-concert N/A
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
parties among the top 10 un-
restricted shareholders, as well as
between the top 10 un-restricted
shareholders and the top 10
shareholders
refinancing shares lending:
□ Applicable ? Not applicable
Indicate whether there was any change to the top 10 shareholders or top 10 un-restricted public
shareholders due to refinancing shares lending/returning during the Reporting Period compared to the same
period of last year.
□ Applicable ? Not applicable
Indicate whether any of the top 10 common shareholders or the top 10 un-restricted common shareholders
of the Company conducted any promissory repo during the Reporting Period.
□ Yes ? No
No such cases in the Reporting Period.
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 companies in the None
Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Nature of the actual controller: domestic natural person
Type of the actual controller: natural person
Residency in other
Name of the actual Relationship with the
Nationality countries or regions or
controller actual controller
not
Li Weiwei Actual controller himself Chinese Not
Main occupation and
Chairman of the Board
position
Controlling interests in
other domestically and
None
overseas listed
companies in the past
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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
Co., Ltd.
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
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
□ Applicable ? Not applicable
Controller, Reorganizer and Other Undertaking Makers
□ Applicable ? Not applicable
IV Share Repurchases during the Reporting Period
Progress on share repurchases:
? Applicable □ Not applicable
Shares
repurchas
Amount to
Date of Number of ed as % of
be used for Number of
the shares to As % of Intended Purpose of total target
repurchas shares
repurchas be total share repurchas repurchas shares (if
e repurchas
e plan’s repurchas capital e period ed shares any) under
(RMB’0,000 ed
disclosure ed equity
)
incentive
plan
December 5,899,705 0.27% 10,000- Within 12 Retired to 562,660
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
following registered
the capital
approval
of the
repurchas
e plan by
a meeting
of
shareholde
rs
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 January
capital before the retirement of the repurchased shares. Upon the completion of this retirement of shares,
the Company's total share capital changed from 2,217,864,281 shares to 2,212,237,681 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.
Part VI Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of report signing April 16, 2026
Name of the independent auditor Huaxing Certified Public Accountants LLP
Number of the independent auditor’s report H.X.S.Z. [2026] No. 25015060013
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 December 31, 2025, 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 December 31, 2025, 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
Independence Standards for Chinese Certified Public Accountants and the Code of Ethics for Chinese
Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance with the
said Code of Ethics. In our audit, we adhered to the independence requirements for auditing entities of public
interest. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
III Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements 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
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
As described in Notes III – (XXXI) Revenue and V – (XXXIX) 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.
(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
As described in Note V–(XLI) Distribution and Selling Expenses, the Internet traffic fee charges in the 2025
consolidated financial statements amount to RMB7,218 million. 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.
The major audit procedures performed to address the exactness and accuracy of Internet traffic fee
charges include:
(1) We investigated and tested Internet traffic fee charges-related internal controls and assessed the
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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.
IV 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 2025 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.
V 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.
VI 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
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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.
As 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
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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
Prepared by 37 Interactive Entertainment Network Technology Group Co., Ltd.
December 31, 2025
Unit: RMB
Item December 31, 2025 January 1, 2025
Current assets:
Monetary funds 4,123,545,240.96 5,058,893,098.76
Transaction settlement funds
Loans to other banks
Trading financial assets 3,223,557,823.14 2,249,440,497.59
Derivative financial assets
Notes receivable
Accounts receivable 1,121,605,274.40 1,212,667,677.20
Accounts receivable
financing
Prepayments 933,533,438.08 729,588,626.88
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 49,631,915.13 42,840,109.04
Including: Interest
receivable
Dividends
receivable
Redemptory monetary
capital for sale
Inventories 474,948,916.44
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within
one year
Other current assets 131,846,683.21 118,850,219.61
Total current assets 10,770,261,947.73 10,335,349,921.41
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 541,108,476.33 446,322,435.18
Other equity investments 195,214,869.29 217,022,972.20
Other non-current financial 1,880,164,590.83 1,037,418,816.34
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
assets
Investment properties 829,444,129.24 689,233,033.12
Fixed assets 895,767,572.19 1,076,644,793.81
Construction in progress 24,017,193.68
Productive living assets
Oil and gas assets
Right-of-use assets 10,071,890.44 6,566,577.29
Intangible assets 1,384,921,036.69 1,888,794,105.85
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 1,578,065,048.53 1,578,065,048.53
Long-term deferred expenses 126,078,222.22 66,733,610.79
Deferred income tax assets 85,891,165.09 44,668,879.75
Other non-current assets 3,994,251,725.88 2,195,871,744.13
Total non-current assets 11,544,995,920.41 9,247,342,016.99
Total assets 22,315,257,868.14 19,582,691,938.40
Current liabilities:
Short-term loans 3,963,827,983.08 2,653,781,111.11
Loans from the central bank
Loans from other banks
Trading financial liabilities 9,009,110.18 8,743,696.60
Derivative financial liabilities
Notes payable 944,600,000.00 1,044,500,000.00
Accounts payable 1,776,482,556.69 1,667,812,211.58
Advances from customers 1,279,551.31 362,116.34
Contract liabilities 239,381,006.69 244,227,089.06
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 335,240,716.75 384,954,362.43
Taxes payable 254,439,929.14 200,043,621.99
Other payables 951,480,965.46 200,414,366.22
Including: Interest payable
Dividends payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due
within one year
Other current liabilities 65,640,725.70 49,219,418.15
Total current liabilities 8,548,465,510.49 6,459,143,962.54
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2,452,513.57 1,528,614.88
Long-term payables
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 94,766,989.80 105,413,115.53
Other non-current liabilities
Total non-current liabilities 97,219,503.37 106,941,730.41
Total liabilities 8,645,685,013.86 6,566,085,692.95
Shareholders' equity:
Share capital 2,212,237,681.00 2,217,864,281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2,551,612,936.51 2,678,529,816.16
Less: Treasury shares 300,524,656.78 401,229,096.75
Other comprehensive income -169,643,754.58 -119,674,167.70
Special reserves
Surplus reserves 666,869,940.33 666,869,940.33
General risk reserves
Retained earnings 8,573,655,829.61 7,878,369,071.34
Total equity attributable to
shareholders of the Company
Non-controlling interests 135,364,878.19 95,876,401.07
Total shareholders' equity 13,669,572,854.28 13,016,606,245.45
Total liabilities and shareholders’
equity
Legal representative: Zeng Kaitian Person-in-charge of accounting: Ye Wei Head of the
accounting department: Ye Wei
Unit: RMB
Item December 31, 2025 January 1, 2025
Current assets:
Monetary funds 924,898,806.39 45,010,430.49
Trading financial assets 2,321,253,907.41 1,472,922,373.98
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable
financing
Prepayments 66,558.63 299,511.91
Other receivables 1,584,542,300.00 2,067,993,087.97
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 9,162,316.97 8,185,040.85
Total current assets 5,022,571,067.46 3,594,410,445.20
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 9,305,301,327.68 9,561,797,839.35
Other equity investments
Other non-current financial
assets
Investment properties
Fixed assets
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 354,237.54 2,479,663.50
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets 33,539,022.53 9,230,406.43
Other non-current assets 1,223,203,873.69
Total non-current assets 10,643,136,639.85 9,654,246,087.69
Total assets 15,665,707,707.31 13,248,656,532.89
Current liabilities:
Short-term loans 400,281,111.11
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 430,742.59 1,713,740.20
Advances from customers
Contract liabilities
Employee benefits payable 553,634.94 28,060.00
Taxes payable 3,403.05 17,739,439.95
Other payables 2,031,943,501.25 32,866,010.91
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 2,032,931,281.83 455,180,729.58
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Total liabilities 2,032,931,281.83 455,180,729.58
Shareholders' equity:
Share capital 2,212,237,681.00 2,217,864,281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 6,250,612,855.35 6,345,690,695.32
Less: Treasury shares 300,524,656.78 401,229,096.75
Other comprehensive income
Special reserves
Surplus reserves 1,108,932,140.50 1,108,932,140.50
Retained earnings 4,361,518,405.41 3,522,217,783.24
Total shareholders' equity 13,632,776,425.48 12,793,475,803.31
Total liabilities and shareholders’
equity
Unit: RMB
Item 2025 2024
Including: Operating revenue 15,965,709,257.73 17,440,957,495.58
Interest income
Premium income
Handling charge and
commission income
expenses
Including: Cost of sales 3,854,299,990.51 3,726,548,784.98
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 51,765,998.78 44,113,070.92
Distribution and selling
expenses
General and
administrative expenses
Research and
development expenses
Financial expenses -151,094,474.42 -161,323,359.39
Including: Interest
expense
Interest
income
Add: Other income 32,988,176.93 88,261,430.73
Investment income (“-”
for loss)
Including: Share of
profits and losses of joint ventures
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
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
-228,090.57 -31,087,890.91
value (“-” for loss)
Impairment loss on credit
-7,908,726.44 20,706,759.60
(“-” for loss)
Impairment loss on assets
-921,260.81 -56,171,665.31
(“-” for loss)
Gain on disposal of assets
(“-” for loss)
Add: Non-operating income 4,758,966.74 4,377,488.74
Less: Non-operating expenses 28,192,474.91 6,589,589.85
expenses (“-” for loss)
Less: Income tax expenses 486,412,448.83 424,491,264.41
operations
continuing operations (“-” for net 2,898,945,699.72 2,664,300,958.37
loss)
discontinued operations (“-” for
net loss)
the equity
shareholders of the Company
-1,282,402.60 -8,720,368.93
non-controlling interests
-49,969,586.88 9,837,395.55
net of tax
Other comprehensive income
attributable to shareholders of the -49,969,586.88 9,837,395.55
Company, net of tax
income that will not be
-15,377,010.98 -5,236,043.48
reclassified subsequently to profit
or loss
remeasurement of defined
benefit pension schemes
comprehensive income of the
investee accounted for using
equity method that will not be
reclassified subsequently to profit
or loss
-15,377,010.98 -5,236,043.48
of other equity investments
value of the company's own
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
credit risk
income that will be reclassified -34,592,575.90 15,073,439.03
subsequently to profit or loss
comprehensive income of the
investee accounted for using
equity method that will be
reclassified subsequently to profit
or loss
of other equity investments
income arising from the
reclassification of financial assets
impairments in other debt
investments
reserve
on translation of foreign currency -34,700,410.36 16,345,206.57
financial statements
Other comprehensive income
attributable to non-controlling
interests, net of tax
Total comprehensive income
attributable to shareholders of the 2,850,258,515.44 2,682,858,722.85
Company
Total comprehensive income
attributable to non-controlling -1,282,402.60 -8,720,368.93
interests
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: Zeng Kaitian Person-in-charge of accounting: Ye Wei Head of the
accounting department: Ye Wei
Unit: RMB
Item 2025 2024
Less: Cost of sales 0.00 0.00
Taxes and surcharges 25,903.05 32,439.32
Distribution and selling
expenses
General and
administrative expenses
Research and
development expenses
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Financial expenses -3,372,609.76 8,833,921.68
Including: Interest
expense
Interest
income
Add: Other income 3,649,975.38 7,932,182.75
Investments income (“-”
for 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 (“-” for loss)
Impairment loss on credit
(“-” for loss)
Impairment loss on assets
(“-” for loss)
Gain on disposal of assets
(“-” for loss)
Add: Non-operating income 181,673.88 169,747.52
Less: Non-operating expenses 9,030,000.00 20,001.80
expenses (“-” for loss)
Less: Income tax expenses -24,308,616.10 -9,308,957.40
operations (“-” for net loss)
discontinued operations (“-” for
net loss)
net of tax
income that will not be
reclassified subsequently to profit
or loss
remeasurement of defined
benefit pension schemes
comprehensive income of the
investee accounted for using
equity method that will not be
reclassified subsequently to profit
or loss
of other equity investments
value of the company's own
credit risk
income that will be reclassified
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
subsequently to profit or loss
comprehensive income of the
investee accounted for using
equity method that will be
reclassified subsequently to profit
or loss
of other equity investments
income arising from the
reclassification of financial assets
impairments in other debt
investments
reserve
on translation of foreign currency
financial statements
Unit: RMB
Item 2025 2024
activities:
Cash received from the sales
of 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 13,099,187.77 1,496,678.61
Cash received relating to
other operating activities
Sub-total of cash inflows from
operating activities
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Cash paid for purchases of
goods 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 employees
Payments of taxes and levies 713,997,783.14 661,817,095.26
Cash paid relating to other
operating activities
Sub-total of cash outflows used in
operating activities
Net cash flows from operating
activities
activities:
Cash received from disposal
of investments
Cash received from
investment income
Cash received from disposal
of fixed assets, intangible assets 739,803.00 486,551.68
and other long-term assets
Net cash received from
disposal of subsidiaries and other 20,271.48
business units
Cash received relating to
other investing activities
Sub-total of cash inflows from
investing activities
Cash paid for acquisition of
fixed assets, intangible assets and 354,154,400.13 572,301,836.19
other long-term assets
Cash paid to acquire
investments
Net increase in pledged loans
granted
Net cash paid for the
acquisition of subsidiaries and 1,495.90 49,991.06
other business units
Cash paid relating to other
investing activities
Sub-total of cash outflows used in
investing activities
Net cash flows from/used in
-2,882,896,513.60 -3,408,196,624.12
investing activities
activities:
Cash received from capital
contributions
Including: Cash received from
capital contributions by non-
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
controlling interests of subsidiaries
Cash received from
borrowings
Cash received relating to
other financing activities
Sub-total of cash inflows from
financing activities
Cash repayments of
borrowings
Cash paid for interest and
dividends
Including: Dividends paid by
subsidiaries to non-controlling 2,663,518.82
interests
Cash paid relating to other
financing activities
Sub-total of cash outflows used in
financing activities
Net cash flows from/used in
-691,383,700.00 -792,672,902.14
financing activities
changes on cash and cash -8,533,867.64 2,911,377.31
equivalents
-44,479,403.62 -1,199,975,466.22
and cash equivalents
Add: Cash and cash
equivalents at beginning of the 1,545,506,260.60 2,745,481,726.82
period
end of the period
Unit: RMB
Item 2025 2024
activities:
Cash received from the sales
of goods or rendering services
Refunds of taxes and levies 728,511.99
Cash received relating to
other operating activities
Sub-total of cash inflows from
operating activities
Cash paid for purchases of
goods and services
Cash paid to and on behalf
of employees
Payments of taxes and levies 26,280.57 2,809,328.25
Cash paid relating to other
operating activities
Sub-total of cash outflows used in
operating activities
Net cash flows from/used in
operating activities
activities:
Cash received from disposal
of investments
Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version
shall prevail.
Cash received from
investment 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 investing activities
Sub-total of cash inflows from
investing activities
Cash paid for acquisition of
fixed assets, intangible assets and
other long-term assets
Cash paid to acquire
investments
Net cash paid for the
acquisition of subsidiaries and
other business units
Cash paid relating to other
investing activities
Sub-total of cash outflows used in
investing activities
Net cash flows from/used in
investing activities
activities:
Cash received from capital
contributions
Cash received from
borrowings
Cash received relating to
other financing activities
Sub-total of cash inflows from
financing activities
Cash repayments of
borrowings
Cash paid for interest and
dividends
Cash paid relating to other
financing activities
Sub-total of cash outflows used in
financing activities
Net cash flows from/used in
-2,607,043,516.81 -2,622,878,343.70
financing activities
changes on cash and cash
equivalents
and cash equivalents
Add: Cash and cash
equivalents at beginning of the 45,010,430.49 499,632,019.26
period
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.
Unit: RMB
Equity attributable to shareholders of the Company
Other equity
Gen Non-
Item instruments Other Spe Total
Less: eral controlli
Share Prefe Perp Capital compreh cial Surplus Retained Oth sharehold
Treasury risk Sub-total ng
capital rred etual Oth reserves ensive reser reserves earnings ers interests ers' equity
shares reser
share bond ers income ves
ves
s s
Balance -
as at the 119,674,1
,281.00 ,816.16 096.75 940.33 ,071.34 9,844.38 01.07 6,245.45
end of 67.70
prior year
Add:
Adjustme
nts for
changed
accounti
ng
policies
Adjus
tments for
correctio
ns of
previous
errors
Other
s
Balance ,281.00 ,816.16 096.75 119,674,1 940.33 ,071.34 9,844.38 01.07 6,245.45
as at 67.70
beginnin
g of year
Increase/
decrease
- - - -
in the 695,286,7 613,478,1 39,488,4 652,966,6
period (“- 58.27 31.71 77.12 08.83
.00 79.65 439.97 6.88
” for
decrease
)
- -
compreh 2,900,228 2,845,101, 2,843,818,
ensive ,102.32 402.22 999.62
income
Capital
contributi
- - - -
on and 40,799,1 8,989,960.
withdraw 09.56 00
.00 89.53 439.97 9.56
al by
sharehold
ers
Common
shares
contributi
on and
withdraw
al by
sharehold
ers
Capital
contributi
on and
withdraw
al by
holders of
other
equity
instrumen
ts
Share-
based
payments
included
in
sharehold
ers’
equity
- - - -
Others 09.56
.00 89.53 439.97 9.56
distributio 2,199,698 2,199,698, 2,199,698,
n ,134.00 134.00 134.00
Appropri
ation to
surplus
reserves
Appropri
ation to
general
risk
reserves
Distributio - - -
n to 2,199,698 2,199,698, 2,199,698,
sharehold ,134.00 134.00 134.00
ers
Others
Internal
transfers -
within 5,157,113
.22
sharehold .22
ers’
equity
Capital
reserves
transferre
d into
capital
(or share
capital)
Surplus
reserves
transferre
d into
capital
(or share
capital)
Surplus
reserves
for
making
up losses
Changes
in defined
benefit
pension
schemes
transferre
d into
retained
earnings
Other
compreh
ensive -
income 5,157,113
.22
transferre .22
d into
retained
earnings
Others
Special
reserves
Increase
in the
period
in the
period
- - -
- -
Balance
as at the 2,212,237 2,551,612 300,524, 666,869, 8,573,655 13,534,20 135,364, 13,669,57
end of ,681.00 ,936.51 656.78 940.33 ,829.61 7,976.09 878.19 2,854.28
the
period
Unit: RMB
Equity attributable to shareholders of the Company
Other equity
Gen Non-
Item instruments Other Spe Total
Less: eral controlli
Share Prefe Perp Capital compreh cial Surplus Retained Oth sharehold
Treasury risk Sub-total ng
capital rred etual Oth reserves ensive reser reserves earnings ers ers' equity
shares reser interests
share bond ers income ves
ves
s s
Balance -
as at the 129,511,5
,281.00 ,832.04 656.78 940.33 ,642.53 5,475.87 932.47 2,408.34
end of 63.25
prior year
Add:
Adjustme
nts for
changed
accounti
ng
policies
Adjus
tments for
correctio
ns of
previous
errors
Other
s
Balance -
as at 129,511,5
,281.00 ,832.04 656.78 940.33 ,642.53 5,475.87 932.47 2,408.34
beginnin 63.25
g of year
Increase/ 144,511,0 9,540,53
decrease 15.88 1.40
in the
period (“-
” for
decrease
)
- -
compreh 2,673,021 2,658,697, 2,649,977,
ensive ,327.30 915.85 546.92
income
Capital
contributi
- - -
on and 100,704, 1,843,35
withdraw 439.97 6.35
al by
sharehold
ers
Common
shares
contributi - -
on and 24,427,4 24,427,45
withdraw 51.00 1.00
al by
sharehold
ers
Capital
contributi
on and
withdraw
al by
holders of
other
equity
instrumen
ts
Share-
based
payments - - -
included 122,987,0 122,987,0 122,897,2
in 60.04 60.04 62.18
sharehold
ers’
equity
- - -
Others 439.97 09.49
distributio 2,199,698 2,199,698, 2,663,51 2,202,361,
n ,134.00 134.00 8.82 652.82
Appropri
ation to
surplus
reserves
Appropri
ation to
general
risk
reserves
Distributio - - - -
n to 2,199,698 2,199,698, 2,663,51 2,202,361,
sharehold ,134.00 134.00 8.82 652.82
ers
Others
Internal 24,160,80
transfers 7.00
within
sharehold
ers’
equity
Capital
reserves
transferre
d into
capital
(or share
capital)
Surplus
reserves
transferre
d into
capital
(or share
capital)
Surplus
reserves
for
making
up losses
Changes
in defined
benefit
pension
schemes
transferre
d into
retained
earnings
Other 7.00
compreh
ensive
income
transferre
d into
retained
earnings
Others
Special
reserves
Increase
in the
period
in the
period
Balance
as at the 2,217,864 2,678,529 401,229, 666,869, 7,878,369 12,920,72 95,876,4 13,016,60
end of ,281.00 ,816.16 096.75 940.33 ,071.34 9,844.38 01.07 6,245.45
the
period
Unit: RMB
Item Other equity instruments Other Total
Less: Treasury Special Retained
Share capital Capital reserves comprehensive Surplus reserves Others shareholders'
Preferred Perpetual Others shares reserves earnings
income equity
shares bonds
Balance as at
e end of prior 2,217,864,281.00 6,345,690,695.32 401,229,096.75 1,108,932,140.50 3,522,217,783.24 12,793,475,803.
ear
dd:
djustments for
hanged
ccounting
olicies
Adjustments
r corrections of
evious errors
Others
Balance as at
eginning of 2,217,864,281.00 6,345,690,695.32 401,229,096.75 1,108,932,140.50 3,522,217,783.24 12,793,475,803.
ear
Increase/
ecrease in the -
-5,626,600.00 -95,077,839.97 0.00 839,300,622.17 839,300,622.
eriod (“-” for 100,704,439.97
ecrease)
omprehensive 3,038,998,756.17 3,038,998,756.
come
ontribution and -
-5,626,600.00 -95,077,839.97
thdrawal by 100,704,439.97
areholders
ares
ontribution and
thdrawal by
areholders
ontribution and
thdrawal by
olders of other
quity
struments
ased payments
cluded in
areholders’
quity
-2,199,698,134.
stribution 2,199,698,134.00
ppropriation to
rplus reserves
-2,199,698,134.
shareholders 2,199,698,134.00
ansfers within
areholders’
quity
serves
ansferred into
apital (or share
apital)
serves
ansferred into
apital (or share
apital)
serves for
aking up losses
efined benefit
ension
hemes
ansferred into
tained
arnings
omprehensive
come
ansferred into
tained
arnings
serves
e period
eriod
Balance as at
e end of the 2,212,237,681.00 6,250,612,855.35 300,524,656.78 1,108,932,140.50 4,361,518,405.41 13,632,776,425.
eriod
Unit: RMB
Other equity instruments Other Total
Item Less: Treasury Special Retained
Share capital Preferred Perpetual Capital reserves comprehensive Surplus reserves Others shareholders'
Others shares reserves earnings
shares bonds income equity
Balance as at
e end of prior 2,217,864,281.00 6,468,587,957.50 300,524,656.78 -60,000,000.00 1,108,932,140.50 4,846,565,105.07 14,281,424,827.
ear
dd:
djustments for
hanged
ccounting
olicies
Adjustments
r corrections of
evious errors
Others
Balance as at
eginning of 2,217,864,281.00 6,468,587,957.50 300,524,656.78 -60,000,000.00 1,108,932,140.50 4,846,565,105.07 14,281,424,827.
ear
Increase/
ecrease in the -
-122,897,262.18 100,704,439.97 60,000,000.00 -1,487,949,023.
eriod (“-” for 1,324,347,321.83
ecrease)
omprehensive 933,572,941.86 933,572,941.
come
ontribution and
-122,897,262.18 100,704,439.97 -223,601,702.
thdrawal by
areholders
ares
ontribution and
thdrawal by
areholders
ontribution and
thdrawal by
olders of other
quity
struments
ased payments
-122,897,262.18 -122,897,262.
cluded in
areholders’
quity
-2,199,698,134.
stribution 2,199,698,134.00
ppropriation to
rplus reserves
-2,199,698,134.
shareholders 2,199,698,134.00
ansfers within
areholders’
quity
serves
ansferred into
apital (or share
apital)
serves
ansferred into
apital (or share
apital)
serves for
aking up losses
efined benefit
ension
hemes
ansferred into
tained
arnings
omprehensive
come
ansferred into
tained
arnings
serves
e period
eriod
Balance as at
e end of the 2,217,864,281.00 6,345,690,695.32 401,229,096.75 1,108,932,140.50 3,522,217,783.24 12,793,475,803.
eriod
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