Kaiying Network estimated that more than 2 billion annual reports were issued with reservations last year

17 Jul

Kaiying Network estimated that more than 2 billion annual reports were issued with reservations last year

Kaiying Network estimated that more than 2 billion annual reports were issued with reservations last year
On April 29, Kaiying Network, an A-share game company, announced results for 2019 and the first quarter of this year.Kaiying Network achieved revenue of 20 last year.3.7 billion, a year-on-year decline of 10.81%; net profit attributable to shareholders of listed companies is up to Dada.5.1 billion yuan, net profit in 2018 was 1.74ppm; excluding non-recurring gains and losses, the company’s net excess reached 20.3.8 billion yuan, with a net profit of 7731 in 2018.310,000 yuan.  The main reason for the huge loss of Kaiying Network is the impairment of goodwill.As the affiliated company Zhejiang Jiuling faced huge expenditures, Kaiying Network carried out preliminary calculations on Zhejiang Jiuling in an unsustainable manner, and it is expected that the full amount of goodwill will be impaired by about 9.500 million yuan.In addition, the gaming company Zhejiang Shenghe, which was acquired by Kaiying Network, saw a substantial increase in revenue and net profit last year. The company accrued a goodwill impairment allowance of approximately 11 for listed companies.500 million yuan.  The main revenue of Kaiying Network comes from the game business and the distribution of mobile Internet products. In addition to the game distribution last year, the company’s other business revenues all declined, and other product revenues, mobile games and web games revenue fell 68.22%, 13.96% and 32.94%.  Kaiying Network also performed poorly in the first quarter of this year, and the company achieved revenue4.2.3 billion, a decrease of 37 per year.0%; net profit attributable to shareholders of listed companies is 2974.050,000 yuan, a year-on-year decrease of 66.35%; excluding non-recurring gains and losses, the company’s net profit was 31.1 million yuan, a year-on-year decline of 61.43%.Kaiying said in the performance forecast that some games have ceased operation or entered the end of their life cycle in the first quarter of this year, and some new product launch delays have caused the company’s revenue and net profit to decline.  Obviously, the audit report issued by Huaxing Certified Public Accountants (Special General Partnership) on Kaiying Network ‘s annual report mainly concerns the impairment of goodwill in Zhejiang Jiuling.In addition, Huaxing Certified Public Accountants said that due to suspected information leakage violations, Kaiying Network was investigated by the Securities Regulatory Commission, and some executives were criminally detained by the Shanghai Public Security Bureau for allegedly breaching trust and damaging the interests of listed companies.Ultimately, it is impossible to determine the specific impact on the financial status and operating results of the consolidated Kaiying Network.  Kaiying said that the company’s board of directors will carry out internal verification of the matters involved in the reservation, while continuing to pay attention to the relevant statements of the regulatory authorities and judicial authorities to file investigations, and accordingly disclose the relevant progress in accordance with the information disclosure rules and timely disclosure.  Last year, Kaiyue Network ‘s controlling shareholder Wang Yue, chairman Jin Feng and many other company executives were criminally detained and arrested by the Shanghai Public Security Bureau on suspicion of insider trading or manipulating the securities market.At present, Wang Yue has not yet obtained the bail pending trial, and Jin Feng has already carried out the bail pending review procedures in November last year. He also triggered an increase plan of no more than 100 million US dollars in March this year.  Therefore, in addition to the annual report and the first quarterly report, Kaiying Network also issued an announcement saying that the company plans to purchase liability insurance for all directors, supervisors and senior management personnel. It is expected that the premium will not exceed 1.2 million per year, and the sum assured will not exceed 100 million yuan per year.year.Reporter Lu Yifu edited Sun Yong proofreading Wang Xin