錄 目 2 管理層討論及分析 16 其他資料 25 簡明綜合財務報表審閱報告 27 簡明綜合損益及其他全面收益表 29 簡明綜合財務狀況表 31 簡明綜合權益變動表 33 簡明綜合現金流量表 34 簡明綜合財務報表附註

錄 目 2 管理層討論及分析 16 其他資料 25 簡明綜合財務報表審閱報告 27 簡明綜合損益及其他全面收益表 29 簡明綜合財務狀況表 31 簡明綜合權益變動表 33 簡明綜合現金流量表 34 簡明綜合財務報表附註

(1) 776,000 748,000 752,000 761,000 708,000 347,000 332,000 317,000 360,000 318,000 Online 347,000 4.5% 9.1% 776,000 3.7% 9.6% 246 3.5% 0.4% 2016 2

(2) 786,900,000 37.7% 195.8% 296,700,000 4.4% 24.2% 480,100,000 71.5% 34 437,400,000 26.3% 96.1% 1 99,400,000 5.3% 55.8% 1 87,700,000 34.3% 122.7% 2 28,100,000 111,800,000 113,600,000 70,700,000 1,358,500,000 165.2% 580,800,000 25.4% 760,000,000 3,141.3% 783,900,000 82.2% 1 193,700,000 82.5% 1 221,100,000 287.6% 3 2016

(2) 296,697 480,107 284,067 279,942 238,891 13,467 279,736 155,803 264,857 82,936 216,262 5,642 94.3% 32.5% 93.2% 29.6% 90.5% 41.9% 1 99,356 (87,695) 94,314 (133,443) 63,755 (39,372) 3 (82,060) (91,390) (77,344) (87,848) (71,509) (24,550) (37,372) (95,323) (33,520) (87,837) (35,000) (3,817) (66,586) (39,090) (60,464) (38,952) (49,786) (14,010) 1 8 2 3 8 2016 4

(2) 786,907 571,637 266,009 (349,481) (225,192) (42,948) 437,426 346,445 223,061 63,151 15,611 29,989 (134,777) (122,214) (39,307) (162,141) (191,584) (118,172) (178,050) (169,112) (96,142) (16,646) (6,772) (3,186) 213 (743) (1,767) 9,176 (128,369) (5,524) 1,600 (6,341) 2,192 646 92,180 3,661 4,255 (3,245) (991) (2,031) (2,737) (823) 97,239 (128,498) (5,092) (6,679) (6,295) (7,501) 90,560 (134,793) (12,593) 70,669 (113,563) (7,460) 19,891 (21,230) (5,133) 90,560 (134,793) (12,593) 5 2016

(3) 786,900,000 71.5% 34 71.1% 45.5% ClassFlow TM 24.2% 55.8% 296,700,000 24.2% 180 PCU 776,000 9.6% ACU 347,000 9.1% 3D 2016 6

APP IP (VR) (AR) 480,100,000 71.5% 34 71.1% 45.5% Promethean K-12 ClassFlow TM 75 50% K-12 2.8 K-12 2 ClassFlow TM 26,100,000 78.6% 93.5% 101 PPT 7 2016

VR VR VR 3D AR AR WizAR AR AR ARHT Media AR O2O K-12 ClassFlow TM 5.0 ClassFlow TM 5.0 ClassFlow TM 5.0 ClassFlow TM Community Activity Builder ios ClassFlow TM Moments 2016 8

(4) 1,034,600,000 1,710,000,000 1,033,800,000 1,352,400,000 (5) 0.030.01 121,300,000 25,100,000 (6) 4,129,900,000 4,303,600,000 (7) (8) 9 2016

(9) (10) 3,135 2,991 2,093 1,169 1,091 721 931 917 725 312 173 5,547 5,172 3,539 (11) 5,547 2016 100 VR/AR 1,039 66.24%VR VR VR VR 2016 10

2016 11 2016

(12) VR VR 99 O2O 144 5,800 2016 12

1 VR VR VR VR VR VR VR VR VR VR 8 450 K12 K12 2D 3D 2D 3D 2D O2O 7 35 HR 15 1,000 13 2016

4 160 20 900 K12 16 94 2 27 600 60 99 4 VR 360 3 900 1,800 (13) 2016 14

(14) 0.10 0.10 (15) 183 22 15 2016

571 XV XV 7 8 352 10 1 2 254,138,457(L) 51.19% 3 299,880,000 (L) 99.96% 4 100,000(L) 0.02% 2 255,822,457(L) 51.53% 3 299,880,000 (L) 99.96% 2 254,138,457(L) 51.19% 3 299,880,000 (L) 99.96% 5 11,197,019(L) 2.26% 6 818,000(L) 0.16% 7 1,036,519(L) 0.21% 8 935,019(L) 0.19% 2016 16

1. L 2. DJM Holding Ltd. 95.36% DJM Holding Ltd. 38.49% 0.42% 1,884,800 197,019 5.69% 26,541,819 1,684,000 DJM Holding Ltd. Fitter Property Inc. 4.64% 100.00% DJM Holding Ltd. Fitter Property Inc. 38.49% 3.83% Flowson Company Limited Flowson Company Limited Eagle World International Inc. 100.00% Eagle World International Inc. 2.80% 0.32% 1,582,200 DJM Holding Ltd. Fitter Property Inc. Eagle World International Inc. 51.19% 3. 3.23% 0.07% 96.66% 99.96% 4. 0.02% 100,000 5. 2.26% 71,000 11,040,819 6. 0.16% 579,500 238,500 7. 0.21% 718,519 318,000 8. 0.19% 117,019 818,000 17 2016

XV XV 7 8 352 XV 2 3 336 10% 1 DJM Holding Ltd. 191,078,100(L) 38.49% 2 78,333,320(L) 15.78% Ho Chi Sing 2 78,333,320(L) 15.78% 2 73,490,095(L) 14.80% First Elite Group Limited 3 26,502,415(L) 5.34% Jardine PTC Limited 3 26,502,415(L) 5.34% 2016 18

1. L 2. IDG Technology Venture Investments, L.P. IDG-Accel China Growth Fund L.P. IDG-Accel China Growth Fund-A L.P. IDG-Accel China Investors L.P. 2.19% 10.47% 2.14% 0.98% a) IDG Technology Venture Investments, L.P. IDG Technology Venture Investments, LLC IDG Technology Venture Investments, LLC Ho Chi Sing b) IDG-Accel China Growth Fund L.P. IDG-Accel China Growth Fund-A L.P. IDG-Accel China Growth Fund Associates L.P. IDG-Accel China Growth Fund Associates L.P. IDG-Accel China Growth Fund GP Associates Ltd. IDG-Accel China Growth Fund GP Associates Ltd. Ho Chi Sing 35.00% c) IDG-Accel China Investors L.P. IDG-Accel China Investor Associates Ltd. IDG-Accel China Investor Associates Ltd. Ho Chi Sing 3. First Elite Group Limited Jardine PTC Limited Jardine PTC Limited Richmedia Holdings Limited XV 2 3 336 10% 19 2016

4.60 85,200 85,200 0 4.33 1,400,000 1,400,000 4.60 284,000 284,000 4.60 85,200 85,200 0 4.60 85,200 85,200 0 15.72 238,500 238,500 15.72 318,000 318,000 4.60 200,000 200,000 5.74 300,000 300,000 15.72 318,000 318,000 4.80 2,840,729 2,000,875 169,627 670,227 4.60 115,575 15,000 100,575 5.74 762,862 230,875 30,818 501,169 6.53 363,238 17,950 345,288 7.20 50,250 50,250 11.164 426,950 42,000 384,950 14.66 556,000 556,000 27.75 214,000 214,000 8,643,704 2,562,300 200,445 5,880,959 1. 255,600 2016 20

10% 268,199 5.07 (i) (ii) 218,212 218,212 IDG Vertex Alpha IDG Vertex Alpha (10%) IDG Vertex Alpha 21 2016

(i) (ii) A IDG-Accel China Growth Fund-L.P. IDG-Accel China Growth Fund-A L.P. IDG-Accel China Investors L.P.IDG Vertex Asia Fund Pte. Ltd.Vertex Alpha Animation and Culture (Hong Kong) Company LimitedAlpha Catchy Holdings Limited DJM Holding Ltd. Creative Sky International Limited BVI A A 180,914,513 A A 52,500,000 409,500,000 A A A 100% A 12.22% A 86.15% 77.96% A CHERRYPICKS ALPHA RESOURCES LIMITED CHERRYPICKS ALPHA HOLDINGS LIMITED NetDragon BVI Cherrypicks Alpha Holdings Limited (i) 1,500,000 7.8% (ii) Cherrypicks Alpha Resources Limited 3,160,000 1,087,621 22.6623 2016 22

10 10 14 23 2016

93,386,630 4,840,000 4,840,000 21.25 17.40 93,386,630 2016 24

27 62 34 34 34 2410 25 2016

34 2016 26

4 1,358,544 512,225 (574,673) (81,971) 783,871 430,254 4 78,762 56,533 (256,991) (70,133) (353,725) (225,098) (347,162) (184,031) (23,418) (8,742) (530) (5,312) (119,193) (6,529) 3,190 (4,149) 646 95,841 1,401 1,010 (10,732) (4,768) (1,640) (31,259) (13,664) 6 (12,974) (11,994) 7 (44,233) (25,658) (45,250) (129) (3,448) (48,698) (129) (92,931) (25,787) 27 2016

(42,894) (18,374) (1,339) (7,284) (44,233) (25,658) (85,004) (18,503) (7,927) (7,284) (92,931) (25,787) 9 (8.68) (3.72) (8.68) (3.72) 2016 28

10 1,303,082 1,246,117 11 545,499 438,677 12 54,186 55,377 13 867,766 953,950 14 17,115 18,883 25,737 5,000 26,227 23,081 15 15,157 18,112 15,554 18,302 16 368,582 334,839 3,199 3,611 3,242,104 3,115,949 143,836 117,584 11 6,789 2,733 8,084 3,397 15 457,150 234,733 4,355 4,339 18 131,454 115,918 19 1,704 1,704 19 1,847 11,204 3,013 11,159 20 171,650 170,640 190,654 583,091 843,919 1,126,957 1,964,455 2,383,459 2,690 1,964,455 2,386,149 29 2016

21 468,604 507,592 1,617 993 30,543 29,373 84,467 85,039 19 3,349 2,254 19 2,147 9,632 22 188,504 278,499 23 121,293 25,142 30,174 95,194 930,698 1,033,718 1,033,757 1,352,431 4,275,861 4,468,380 8,922 12,723 1,799 2,027 135,282 149,993 146,003 164,743 4,129,858 4,303,637 24 36,607 36,726 4,084,155 4,257,120 4,120,762 4,293,846 9,096 9,791 4,129,858 4,303,637 2016 30

36,943 930,286 5,223 38,755 10,045 253,699 78,865 673 (4,335) 31,872 (59,349) 3,244,237 4,566,914 50,489 4,617,403 (18,374) (18,374) (7,284) (25,658) (129) (129) (129) (129) (18,374) (18,503) (7,284) (25,787) (486) (70,095) 486 (486) (70,581) (70,581) 230 22,364 (6,833) 15,761 15,761 2,035 2,035 2,035 1,082 (2,178) 1,096 3,353 3,353 (239) (239) (115) (115) (113) (228) (10) (69) 69 (10) (16) (26) (78,865) 480 (78,385) (78,385) 39,197 (39,197) 36,687 882,555 5,709 38,640 10,035 253,630 39,197 673 (3,253) 24,896 (59,478) 3,187,825 4,417,116 46,190 4,463,306 31 2016

36,726 887,340 5,709 39,464 10,035 260,714 49,767 22,449 (3,253) 26,593 (48,018) 3,006,320 4,293,846 9,791 4,303,637 (42,894) (42,894) (1,339) (44,233) (38,662) (3,448) (42,110) (6,588) (48,698) (38,662) (3,448) (42,894) (85,004) (7,927) (92,931) (357) (78,585) 357 (357) (78,942) (78,942) 167 14,999 (4,437) 10,729 10,729 71 20,805 20,876 20,876 2,276 2,276 2,276 993 (2,898) 1,905 (543) (543) 7,585 7,042 (887) (887) (99) (986) 861 861 (1,115) (1,115) (49,767) 8,178 (41,589) (41,589) 42,433 (42,433) 36,607 844,559 6,066 38,034 10,035 260,714 42,433 22,449 (2,260) 21,534 (86,680) (3,448) 2,930,719 4,120,762 9,096 4,129,858 2016 32

(395,450) (31,187) (552,361) (1,304,752) (125,666) (311,382) (113,915) (38,158) (24,185) (15,445) (5,640) 26 (9,579) (2,313) (3,791) 946,976 1,840,151 61,396 19,530 72,608 123,042 310,432 844,581 (747,706) (78,942) (70,581) (41,589) (78,385) 10,729 15,761 260,359 (1,168) (265) (14,095) 126,889 (286,503) 406,134 1,126,957 1,036,788 3,465 (101) 843,919 1,442,821 33 2016

1. Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands 25 20 2001-05 11 (i) (ii) (iii) 2. 34 16 3. 2016 34

4. 580,764 463,221 760,049 23,449 17,731 25,555 1,358,544 512,225 50,367 10,845 12,519 37,962 6,734 3,450 6,933 1,601 2,991 453 655 215 445 125 78,762 56,533 35 2016

5. 580,764 760,049 17,731 1,358,544 73,984 44,756 (13,084) 105,656 14,986 (152,911) 1,010 (31,259) 463,221 23,449 25,555 512,225 116,987 (57,059) (6,905) 53,023 39,941 (95,896) (10,732) (13,664) 2016 36

5. 2,257,953 2,699,063 2,178,866 1,841,183 188,282 165,992 4,625,101 4,706,238 581,458 795,860 5,206,559 5,502,098 37 2016

6. 2,644 2,939 16,210 8,972 394 83 (6,274) 12,974 11,994 16.5% 20% 2016 38

7. 6,468 2,747 558,343 262,664 48,002 28,586 (277) 3,581 612,536 297,578 63,800 9,125 3,037 1,445 71,412 52,216 138,249 62,786 480,480 349 31,204 20,883 23,171 28,788 827 827 1,012 309 3,353 1,075 2,273 (2,585) 3,963 39 2016

8. 0.10 0.20 41,589,000 78,385,000 0.10 0.10 49,648,000 42,433,000 9. (42,894) (18,374) 494,194 494,167 494,194 494,167 2016 40

10. 5,061,000 3,676,000 125,666,000 311,382,000 51,241,000 29,811,000 62,540,000 259,175,000 11. 113,915,000 38,158,000 24,639,000 12. 2,273,000 13. 37,226,000 21,781,000 5,640,000 41 2016

14. 31,572 31,572 (13,219) (12,689) (1,238) 17,115 18,883 17,115 17,809 15. 30 90 0 30 328,590 126,351 31 60 82,471 63,674 61 90 9,998 19,197 90 24,747 13,681 11,344 11,830 15,157 18,112 472,307 252,845 2016 42

16. 334,839 40,013 26 33,743 294,826 368,582 334,839 17 17. 16 13 1 6,104 2 8 3 13,724 19,836 4 12,534 12,534 5 31,097 31,097 6 263,729 263,729 254,025 277,137 307,360 307,360 254,025 277,137 7 27,479 27,479 8 13,907 41,386 27,479 368,582 334,839 254,025 277,137 43 2016

17. 14.36% 14.36% 20.79% 14.36% 14.58%21.27% 14.58%13.66% 14.58%18.81%16.59% 20.16% 2.1% 3.0% 18. 83,543,000 72,643,000 23,883,000 14,825,000 1,416,000 12,661,000 19. 2016 44

20. 171,650 170,640 21. 197,584 198,132 104,574 133,786 32,568 30,442 a 14,930 15,430 b 118,948 129,802 468,604 507,592 a. 91 91 91 91 91 91 91 13.168 0.371 800,000 ( 800,000 b. 45 2016

21. 0 90 181,714 137,998 91 180 13,261 57,186 181 365 1,844 2,297 365 765 651 197,584 198,132 22. IDG-Accel China Growth Fund-L.P. IDG-Accel China Growth Fund-A L.P. IDG-Accel China Investors L.P. 13.59%Vertex Asia Fund Pte. Ltd. Alpha Animation and Culture (Hong Kong) Company Limited Catchy Holdings Limited DJM Holding Ltd.DJM 100% Creative Sky International Limited NetDragon Websoft Inc.NetDragon BVI 180,914,513 0.001 A 52,500,000 321,762,000 A 2016 46

22. A A 1:1 1,000,000,000 100,000,000 A A A A A A 300% A A A 47 2016

22. A 278,499 260,474 (53) (95,841) 2,521 5,899 15,504 188,504 278,499 23. 30 200 250 2016 48

24. 0.01 1,000,000,000 10,000,000 75,771 0.01 499,861,262 4,998,613 36,943 i 4,382,758 43,827 269 ii (6,570,000) (65,700) (486) 497,674,020 4,976,740 36,726 i 2,562,300 25,623 167 ii (4,840,000) (48,400) (357) iii 1,087,621 10,876 71 496,483,941 4,964,839 36,607 (i) 2,562,300 2,562,300 4,382,758 167,000 269,000 14,999,000 27,149,000 (ii) 4,840,000 6,570,000 78,942,000 70,581,000 (iii) 1,087,621 Cherrypicks Alpha Resources LimitedCherrypicks Alpha Resources 71,000 20,805,000 49 2016

25. (i) 8,643,704 (200,445) (2,562,300) 5,880,959 24.52 1,287,000 2,721,000 91 91 80,000 137,000 2016 50

25. (ii) 909,000 823,000 118,212 237,725 239,027 239,027 118,212 475,451 149,987 30,686 39,426 79,875 100,000 (iii) NetDragon BVI 6,114,500 91 1,528,625 1,528,625 1,528,625 1,528,625 70,165,000 2,806,000 91 91 254,000 51 2016

26. 3,300,000 100% 50 19 1 (2,874) (2,804) 3,300 2,804 6,104 460 (1) 459 2016 52

26. 854,000 1,359,000,000 44,000,000 88,000 20.96% 4 26 388 (37) 381 36.14% 53 2016

26. 88 138 163 (381) 8 88 (388) (300) 25,000 59,000 1,359,000,000 44,000,000 2016 54

26. Cherrypicks Alpha Resources 3,160,000 20,876,000 Cherrypicks Alpha Resources 100% 1,087,621 22.75 542 10,204 428 3,469 222 (180) (5,849) (1,684) 7,152 55 2016

26. Cherrypicks Alpha Resources Cherrypicks Alpha Resources 20,876 (7,152) 13,724 Cherrypicks Alpha Resources (222) (222) Cherrypicks Alpha Resources 638,000 Cherrypicks Alpha Resources 9,000 1,360,000,000 37,000,000 2016 56

26. Cherrypicks Alpha Holdings Limited Cherrypicks Alpha Group 1,500,000 9,830,000 7.8% Cherrypicks Alpha Group 100% Cherrypicks Alpha Group 179 11,577 11 188 (324) (3,486) (3,270) (1,910) 2,965 57 2016

26. Cherrypicks Alpha Holdings Limited Cherrypicks Alpha Group Cherrypicks Alpha Group 16,872 (2,965) 13,907 Cherrypicks Alpha Group 9,830 (188) 9,642 Cherrypicks Alpha Group 620,000 Cherrypicks Alpha Group 1,359,000,000 47,000,000 2016 58

27. 851 851 DJM 100% 49% 49% 851 3,635 3,609 851 3,500 2,867 4,202 2,769 900 598 5,554 (17) (14) (23) 3,329,000 5% 59 2016

27. 7,477 5,933 134 117 2,351 1,962 9,962 8,012 2016 60

28. 171,650 170,640 188,504 278,499 61 2016

28. 29. 282,602 234,394 2016 62