CMGE Technology : 0 Annual Report

CONTENTS

2 Corporate Information

1. Financial Summary
2. Chairman's Statement

11 Management Discussion and Analysis

27 Directors' Report

49 Biographies of Directors and Senior Management

56 Corporate Governance Report

68 Environmental, Social and Governance Report

95 Independent Auditor's Report

1. Consolidated Statement of Profit or Loss
2. Consolidated Statement of Comprehensive Income
3. Consolidated Statement of Financial Position

1. Consolidated Statement of Changes in Equity
2. Consolidated Statement of Cash Flows

108 Notes to Financial Statements

188 Definitions

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. XIAO Jian (Chairman and Chief Executive Officer) Mr. SIN Hendrick (Vice Chairman)

Mr. FAN Yingjie (appointed on 23 December 2020)

Non-executive Directors

Mr. MA Yuntao (resigned on 13 July 2020)

Mr. TANG Yanwen (resigned on 23 December 2020)

Independent Non-executive Directors

Ms. NG Yi Kum

Mr. TANG Liang

Mr. HO Orlando Yaukai

AUDIT COMMITTEE

Ms. NG Yi Kum (Chairlady)

Mr. MA Yuntao (resigned on 13 July 2020) Mr. TANG Liang

Mr. HO Orlando Yaukai (appointed on 13 July 2020)

AUTHORISED REPRESENTATIVES

Mr. XIAO Jian

Mr. SIN Hendrick

COMPANY SECRETARY

Ms. LAI Yau Yan Gladys

HONG KONG LEGAL ADVISER

Kirkland & Ellis

26th Floor, Gloucester Tower

The Landmark

15 Queen's Road Central

Hong Kong

AUDITOR

Ernst & Young

22nd Floor, CITIC Tower

1 Tim Mei Avenue

Central

Hong Kong

2020 Report Annual | Limited Group Technology CMGE

REMUNERATION COMMITTEE

Mr. HO Orlando Yaukai (Chairman)

Mr. SIN Hendrick

Ms. NG Yi Kum

NOMINATION COMMITTEE

Mr. XIAO Jian (Chairman)

Mr. TANG Liang

Mr. HO Orlando Yaukai

CORPORATE GOVERNANCE COMMITTEE

Ms. NG Yi Kum (Chairlady)

Mr. SIN Hendrick

Mr. HO Orlando Yaukai

COMPLIANCE ADVISER

First Shanghai Capital Limited 19th Floor, Wing on House 71 Des Voeux Road Central Hong Kong

REGISTERED OFFICE

PO BOX 309, Ugland House

Grand Cayman, KY1-1104

Cayman Islands

2

HEADQUARTERS

10th Floor, Building No. 4

Zhuoyue Meilin Centre Square

Zhongkang North Road

Futian District

Shenzhen

Guangdong Province

The PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

13th Floor, 8 Wyndham Street

Central

Hong Kong

PRINCIPAL SHARE REGISTRAR

Maples Fund Services (Cayman) Limited

PO Box 1093, Boundary Hall

Cricket Square

Grand Cayman KY1-1102

Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR

Computershare Hong Kong Investor Services Limited

Shops 1712-1716, 17th Floor

Hopewell Centre

183 Queen's Road East

Wanchai

Hong Kong

CORPORATE INFORMATION

PRINCIPAL BANKERS

China Guangfa Bank

Shenzhen Branch, Binhai Sub-branch

China Merchants Bank

Shenzhen Branch, Weisheng Building

Sub-branch

Guangdong Huaxing Bank

Shenzhen Branch

China Everbright Bank

Shenzhen Futian Branch

COMPANY'S WEBSITE

http://www.cmge.com

STOCK CODE

0302

2020 Report Annual | Limited Group Technology CMGE

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2020 Report Annual | Limited Group Technology CMGE

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FINANCIAL SUMMARY

								REVENUE															GROSS PROFIT		ADJUSTED NET PROFIT(2)
								(RMB in millions)									(RMB in millions)										(RMB in millions)
CAGR+54.7%	3,820.3							CAGR+ 51.6% 1,223.3					CAGR+ 55.1% 807.0
								3,036.3																1,083.2
																																								611.0
1,596.2									532.5
																							335.5
2018	2019	2020							2018	2019	2020							2018	2019	2020

The increase in the Group's revenue was driven by its strong game publishing, game development and IP licensing businesses.

REVENUE FROM	REVENUE FROM	REVENUE FROM
GAME PUBLISHING	GAME DEVELOPMENT	IP LICENSING
(RMB in millions)	(RMB in millions)	(RMB in millions)

CAGR+45.8%	2,977.9							CAGR+102.6% 730.3	CAGR+151.0%	112.1
								2,553.2
1,400.5																		421.3																		61.9
																177.9
																																										17.8
2018	2019	2020							2018	2019	2020																2018	2019	2020
FIVE-YEAR FINANCIAL SUMMARY
																									2020	2019	2018		2017	2016
																								RMB'000	RMB'000	RMB'000		RMB'000	RMB'000
Revenue (1)																	3,820,326	3,036,301	1,596,204	1,012,791	1,001,163
Gross profit (1)																1,223,264	1,083,198	532,470		340,455	349,390
Profit for the year (1)																690,200	243,213	315,973		264,995	188,499
Adjusted net profit (1)(2)									806,950	611,007	335,465		264,995	188,499
Earnings per Share (RMB)																29.92 cents	13.15 cents	17.28 cents	14.72 cents	10.47 cents
Adjusted earnings per Share (RMB) (2)	34.43 cents	32.34 cents	18.64 cents	14.72 cents	10.47 cents
Dividend per Share (HK$)																9.28 cents	3.55 cents			N/A		N/A					N/A
Total assets																	6,330,599	5,208,124	3,013,204		1,115,527	1,289,226
Total liabilities																	1,529,743	1,496,510	1,150,475		207,874	599,607
Total equity																	4,800,856	3,711,614	1,862,729		907,653	689,619

Notes:

1. The Group's revenue, gross profit, profit for the year and adjusted net profit for the years ended 31 December 2016 and 2017 have excluded the revenue, gross profit and profit for the year generated from the Group's card and board games business, which business was disposed of by the Group on 31 December 2017.
2. "Adjusted net profit" is not defined under the HKFRS. It is defined by the Group as net profit attributable to owners of the parent excluding
3. 1. equity-settledshare-based expense; and (ii) Listing expenses. The adjusted net profit more closely reflects the Group's operating results, after excluding the above-mentionednon-operating items. "Adjusted earnings per Share" are the Group's adjusted net profit divided by the weighted average number of Shares during 2020.