Event: the company released its 2021 annual report. In 2021, the operating income of Dianghui Network reached 996 million yuan, down 2.70% from the same period last year; the net profit was 339 million yuan, down 14.19% from the same period last year; and the net profit after deducting non-return was 281 million yuan, down 13.70% from the same period last year. The company intends to distribute a cash dividend of 8.25 yuan (including tax) to all shareholders for every 10 shares.
The company's short-term performance is under pressure and will have the driving force for growth in the future: 1) under the influence of the slowdown in the growth rate of the overall industry, the company will have a decline in operating income. In the future, the company will seize the market opportunities such as game going out to sea, e-sports industry and so on. Continue to strengthen the company's competitiveness; 2) the company's game business operating costs are rising, the company will strengthen comprehensive budget management in the future, and continue to improve the staff cost control system and system. 3) the company has stepped up its research and development efforts, and its R & D expenses have increased by 26.77% compared with the same period last year. It is expected to build an efficient game development system, create more boutique games, and bring performance growth.
"Dream three Kingdoms 2" into Asia, the main products have been well received. "Dream three Kingdoms 2" was officially selected into the e-sports competition of the 2022 Asian Games in November 2021, and was nominated by China Music Association, Game work Committee's Top Ten Outstanding client Games in 2021, "China's innovative Software products of the year", "Ten most popular client online Games" and "CGDA Best Game Animation performance Award". The company's main products "my knight-errant" and "reliever" won a number of awards in the industry.
The subsidiary company makes efforts to go out to sea, and a number of games have achieved good results. According to the cumulative flow of Q1 and Q2 of "Huawu and warring States" launched by Sensor Tower,2019 in 2021, the subsidiary travel network launched its business at sea.
Risk hint: the company's operating income mainly depends on the risk of a single game, the risk that the company's self-research projects fall short of expectations, the risk of falling gross profit margin, the risk of brain drain, and the risk of overseas markets.
