Financial Performance - The company reported a total revenue of HK$1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[10]. - The company reported a significant increase in revenue, achieving a total of RMB 1.5 billion, representing a 25% year-over-year growth[21]. - For the year ended 31 December 2024, the Company generated total revenue of approximately RMB306.4 million, representing a decrease of approximately 36.8% compared to RMB484.9 million in 2023[26]. - The Company recorded a loss attributable to owners of the Company of approximately RMB73.5 million in 2024, representing a decrease of approximately 49.8% compared to 2023[26]. - The gross profit margin for 2024 was 69.3%, with gross profit amounting to RMB212.3 million, a decrease of approximately 47.0% from RMB400.2 million in 2023[26]. User Engagement - Monthly Active Users (MAUs) reached 5 million, with an average of 1.2 million Monthly Paying Users (MPUs), indicating a 20% growth in user engagement[9]. - User data showed a total of 10 million active users, an increase of 15% compared to the previous quarter[21]. - For the year ended 31 December 2024, the average MAUs for web games was approximately 0.9 million, while mobile games had an average MAUs of approximately 0.6 million[95]. - The average MPUs for web games was approximately 28,000, and for mobile games, it was approximately 49,000[95]. Product Development and Innovation - The company plans to launch three new mobile games in 2025, aiming to capture an additional 10% market share in the mobile gaming sector[7]. - The company has allocated HK$50 million for research and development in new technologies, focusing on augmented reality features for upcoming games[3]. - Research and development expenses increased to RMB 200 million, accounting for 13% of total revenue, reflecting the company's commitment to innovation[21]. - The Company focused on competitive leisure games and MMORPGs as its development direction in 2024, actively capturing new market opportunities[29]. - The mini-program game "I'm MT" was launched in May 2024 and ranked among the top sellers of WeChat mini-program games in its first month[35]. Strategic Partnerships and Acquisitions - A strategic partnership was established with a leading technology firm to enhance game development capabilities and reduce time-to-market by 25%[6]. - The company is exploring potential acquisitions to enhance its technology capabilities, with a budget of up to RMB 500 million allocated for this purpose[21]. - An acquisition of a smaller gaming studio was completed for HK$300 million, expected to contribute an additional HK$100 million in annual revenue[4]. - A new strategic partnership was formed with a leading tech firm, aimed at co-developing advanced gaming technologies[21]. Market Expansion - The company is targeting a revenue growth of 20% for the next fiscal year, supported by new product launches and market expansion initiatives[5]. - Market expansion efforts included entering three new provinces in China, targeting an additional 1 million users[21]. - The company is exploring international markets, with "DDTank Adventure" in Europe and "Wartune H5" in the Asia-Pacific region expected to launch in 2025[42]. Corporate Governance - The company is committed to enhancing its corporate governance practices in line with the latest regulations, ensuring transparency and accountability[1]. - The Board consists of six Directors, ensuring a balance of skills and experience appropriate for the Group's business requirements[171]. - The Board is responsible for corporate governance and has implemented sound policies to maintain high standards of integrity, accountability, and transparency[168]. - The Company has complied with the applicable code provisions of the CG Code during the year ended December 31, 2024[169]. Management Team - Mr. Liu Zhizhen will be appointed as the chief executive officer of the Company effective March 8, 2024, and has over 20 years of experience in game R&D[60]. - The Company is expanding its management team with new appointments, including Mr. Liu as CEO and Mr. Yang as CFO effective January 26, 2025[63]. - The Group's management team includes professionals with qualifications such as CPA and CFA, enhancing financial oversight[67][71]. Financial Oversight and Risk Management - The Company is committed to maintaining strong financial oversight with experienced directors in key positions[64]. - The Group's management has implemented strategies to enhance data analytics capabilities and improve player experience to mitigate identified risks[92]. - The company provided counter-guarantees for the borrowings of Shanghai Lingsu, mitigating credit risk associated with the guarantees[158]. Employee Management - The company had 247 full-time employees as of December 31, 2024, with 71% in R&D, 12% in operations, and 17% in administration[163]. - Employee remuneration for the year ended December 31, 2024, amounted to approximately RMB 125.4 million, including salaries, bonuses, and other benefits[164]. - Total employee compensation for the year ended December 31, 2024, was approximately RMB 125.4 million, including salaries, bonuses, share-based compensation, retirement plan contributions, and other employee benefits[167].

Financial Performance - For the fiscal year ending December 31, 2024, the company's total revenue was approximately RMB 306.4 million, representing a decrease of about 36.8% compared to RMB 484.9 million for the fiscal year ending December 31, 2023[4]. - The company recorded a loss attributable to owners of approximately RMB 73.5 million for the fiscal year ending December 31, 2024, a reduction of about 49.8% from a loss of RMB 146.5 million in the previous year[4]. - Total revenue for the year ended December 31, 2024, was approximately RMB 306.4 million, a decrease of about 36.8% compared to RMB 484.9 million for the year ended December 31, 2023[15]. - Game business revenue was approximately RMB 299.6 million, down 36.2% year-over-year, primarily due to a significant increase in revenue from new games launched at the end of 2022, which declined in the current reporting period[15]. - The net loss attributable to owners of the company for continuing operations was approximately RMB 74.7 million, a significant increase of about 4,618.0% compared to the previous year[22]. - The company reported a net loss of RMB 74,156,000 for the year, compared to a net loss of RMB 144,894,000 in 2023, indicating an improvement[43]. - The gross profit for the same period was RMB 212,285,000, down 47.1% from RMB 400,249,000 in 2023[42]. - The company incurred research and development expenses of RMB 0 in 2024, compared to RMB 94,000 in 2023[59]. User Metrics - The average monthly active users for web games was approximately 0.9 million, while for mobile games it was about 0.6 million for the fiscal year ending December 31, 2024[11]. - The average monthly paying users for web games was around 28,000, and for mobile games, it was approximately 49,000 for the fiscal year ending December 31, 2024[11]. - The average revenue per paying user for web games was approximately RMB 573, while for mobile games it was about RMB 530 for the fiscal year ending December 31, 2024[11]. - The company reported a significant increase in paid users, with a total of 1.5 million paid users across its gaming platforms, representing a 25% year-over-year growth[82]. Cost and Expenses - Cost of revenue amounted to approximately RMB 94.1 million, an increase of about 11.1% compared to RMB 84.7 million in the previous year, mainly due to increased costs associated with agency games[16]. - Research and development expenses were approximately RMB 131.9 million, a decrease of about 21.7% compared to the previous year, due to improved management of R&D spending[18]. - Administrative expenses were approximately RMB 46.0 million, down 22.8% year-over-year, attributed to enhanced cost management[19]. - Sales and marketing expenses increased by approximately 27.6% to RMB 63.6 million, primarily due to higher marketing expenditures for game operations[20]. Investments and Assets - The fair value of the investment in Shanghai Super Silicon as of December 31, 2024, was approximately RMB 391.6 million, representing 21.7% of the total assets of the group[29]. - The cumulative unrealized fair value gain from the investment in Shanghai Super Silicon for the year ended December 31, 2024, was approximately RMB 11.6 million[29]. - The fair value of the investment in Ningbo Lianjun as of December 31, 2024, was approximately RMB 116.3 million, accounting for 6.4% of the group's total assets[30]. - The cumulative unrealized fair value gain from the investment in Ningbo Lianjun for the year ended December 31, 2024, was approximately RMB 11.3 million[30]. - The fair value of the investment in Nanjing Lingxing as of December 31, 2024, was approximately RMB 122.3 million, representing 6.8% of the total assets of the group[31]. - The total consideration for the acquisition of all partnership interests in Shanghai Lingsuda was approximately RMB 122.3 million[35]. - The group held investments in listed and unlisted equity securities totaling RMB 809,450,000 as of December 31, 2024, down from RMB 864,443,000 in 2023[67]. Cash Flow and Liabilities - Cash and cash equivalents as of December 31, 2024, were approximately RMB 60.7 million, an increase of about 26.1% from RMB 48.1 million in the previous year[24]. - The debt-to-asset ratio decreased to approximately 6.9% from 22.9% in the previous year, primarily due to the sale of a subsidiary, which reduced total borrowings[26]. - Trade receivables decreased to RMB 131,521,000 in 2024 from RMB 209,377,000 in 2023, a reduction of approximately 37%[65]. - The group reported a decrease in total liabilities from RMB 108.2 million in 2023 to RMB 65.2 million in 2024, indicating a reduction of about 40%[70]. Future Plans and Strategies - The company plans to launch multiple self-developed or agency mini-program games in 2025, focusing on casual competitive and MMORPG genres[7]. - The company aims to enhance data analysis capabilities and deepen the application of AI technology to improve operational efficiency and product quality in 2025[8]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in the region over the next fiscal year[85]. Corporate Governance and Compliance - The group has complied with all applicable corporate governance code provisions during the fiscal year ending December 31, 2024[74]. - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ended December 31, 2024[76]. - The company did not declare any dividends for the year ended December 31, 2024, consistent with 2023[61]. - The board does not recommend a final dividend for the year ended December 31, 2024, consistent with the previous year[73]. Other Notable Information - The company has fully exited from providing cloud computing resources and related support services since March 28, 2024[11]. - The company is currently involved in ongoing litigation regarding intellectual property disputes, with potential financial implications pending[39]. - There were no major subsequent events reported after December 31, 2024[41].

Financial Performance - For the six months ended June 30, 2024, the company recorded total revenue of approximately RMB 139.4 million, representing a decrease of approximately 62.0% compared to the same period in 2023[9]. - The company reported a loss for the period of approximately RMB 6.0 million, which is a decrease of approximately 104.6% compared to the loss in the same period in 2023[10]. - The loss attributable to owners of the company was approximately RMB 7.8 million, representing a decrease of approximately 106.0% compared to the same period in 2023[10]. - Revenue for continuing operations for the six months ended June 30, 2024, was RMB 139,389,000, compared to RMB 366,962,000 for the same period in 2023[28]. - Gross profit for the six months ended June 30, 2024, was RMB 103,533,000, down from RMB 325,958,000 in the same period in 2023[28]. - The Group's game business revenue for the same period was approximately RMB 134.9 million, also reflecting a decrease of approximately 62.0% year-on-year[30][32]. - The total comprehensive loss for the period was RMB 6,224, compared to a total comprehensive income of RMB 131,188 in the same period last year[101]. - The basic and diluted loss per share from continuing operations was RMB (0.004), compared to earnings of RMB 0.059 in 2023[99]. - The company reported a net provision of impairment losses on financial assets of RMB 14,843 for the period[97]. - Total expenses for continuing operations decreased to RMB 165,891,000 in 2024 from RMB 192,923,000 in 2023, reflecting a reduction of approximately 14%[162]. Market Overview - According to the "2024 Global Games Market Report," the global gaming market is expected to reach US$ 187.7 billion in 2024, with a year-on-year increase of 4.5% in the number of game players[11]. - The global mobile gaming market is estimated to be US$ 92.6 billion in 2024, accounting for 49% of the total revenue of the gaming industry, with a year-on-year increase of 3.0%[11]. - China's gaming market recorded actual sales revenue of approximately RMB 147.3 billion from January to June 2024, representing a year-on-year increase of approximately 2.1%[12]. - The number of China's game players reached approximately 670 million from January to June 2024, representing a year-on-year increase of approximately 0.9%[12]. - The overseas market for China's proprietarily developed games recorded actual sales revenue of approximately US$ 8.6 billion, representing a year-on-year increase of 4.2%[12]. Game Development and Strategy - The Group plans to launch multiple games in the second half of 2024, aiming to improve game quality and strengthen global publishing capabilities[19]. - The exclusive mini program game "I'm MT" launched in May 2024 achieved a turnover exceeding RMB10 million in its first month and has surpassed 3 million users[16]. - The mobile game "Gintama" is expected to undergo release tests in the second half of 2024 after completing two tests and optimizing the game[17]. - The classic IP mobile game "DDTank X" is expected to finish development in Q4 2024, with recruitment tests planned to assess user acceptance of product innovations[20]. - The overseas version of "Wartune H5" is expected to be launched globally in the second half of 2024, enhancing the Group's global development strategy[21]. - The Group is actively utilizing AIGC technology in game development to enhance product content and improve R&D efficiency[18]. Financial Position and Cash Flow - As of June 30, 2024, cash and cash equivalents were approximately RMB 50.2 million, up from RMB 48.1 million as of December 31, 2023[42]. - Total borrowings as of June 30, 2024, amounted to nil, a decrease from approximately RMB 231.0 million as of December 31, 2023, primarily due to the disposal of Shanghai Lingsu[42]. - The gearing ratio as of June 30, 2024, was approximately 6.9%, down from 22.9% as of December 31, 2023, due to a higher decrease in total liabilities relative to total assets[42]. - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 41,419,000, a decrease from RMB 220,956,000 in 2023[114]. - Cash flows from investing activities showed a net cash inflow of RMB 49,931,000 for the six months ended June 30, 2024, compared to a net cash outflow of RMB 201,644,000 in 2023[116]. - Net cash used in financing activities was RMB 88,699,000 for the six months ended June 30, 2024, compared to RMB 7,084,000 in 2023, reflecting increased financing costs[116]. Legal and Compliance Matters - Qianhai Huanjing filed a lawsuit claiming approximately RMB 60.2 million related to an intellectual property dispute, which is currently pending retrial[60]. - Proficient City Limited's lawsuit against Qianhai Huanjing and Shenzhen 7Road for RMB 25 million was dismissed, with no further appeals filed[60]. - The Group was not involved in any other material legal proceedings during the six months ended June 30, 2024[61]. - The Company maintained compliance with all applicable code provisions of the CG Code for the six months ended June 30, 2024[86]. - The Company has engaged professional service firms for compliance matters and has adhered to relevant laws and regulations during the reporting period[90]. Shareholder Information - As of June 30, 2024, Mr. Meng Shuqi holds 528,854,000 shares, representing 19.20% of the issued share capital[63]. - The total number of shares in issue as of June 30, 2024, is 2,753,200,000[63]. - Baohu Holdings Limited and Shanghai Bao Hu Investment Management each hold 352,714,000 Shares, representing approximately 12.81% of the registered capital[70]. - The RSU Scheme was approved on March 6, 2018, aimed at incentivizing directors, senior management, and employees to contribute to the group's future development and expansion[75]. - The Company did not declare an interim dividend for the six months ended June 30, 2024[86].

Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of approximately RMB 139.4 million, a decrease of about 62.0% compared to RMB 366.9 million for the same period in 2023[2]. - The company recorded a loss of approximately RMB 6.0 million for the period, a decrease of about 104.6% compared to a profit of RMB 130.4 million in the same period last year[2]. - The gross profit for the six months ended June 30, 2024, was approximately RMB 103.5 million, a decline of about 68.2% from RMB 326.0 million in the same period of 2023[14]. - The company reported a net loss of RMB 5.97 million for the period, compared to a profit of RMB 130.4 million in the same period of 2023[11]. - The company reported a total comprehensive loss of RMB 6.2 million for the six months ended June 30, 2024, compared to a comprehensive income of RMB 131.2 million in 2023[37]. - The company incurred a net loss of RMB 13,451,000 for the six months ended June 30, 2024, compared to a net loss of RMB 15,423,000 in the same period of 2023[47]. Revenue Breakdown - Mobile games accounted for 73.0% of the company's revenue, while web games contributed 27.0%[5]. - Revenue from self-developed games was RMB 77,734,000, down 72% from RMB 280,370,000 in the previous year[44]. - Revenue from cloud-related services decreased to RMB 895,000 from RMB 4,040,000 in the prior year[44]. - The average revenue per paying user for web games decreased by 7.6% to RMB 525, and for mobile games, it decreased by 34.0% to RMB 535[9]. Game Development and Launches - The company launched the mini-program game "I Am MT" in May 2024, generating over RMB 10 million in revenue in its first month and attracting over 3 million new users[5]. - The game "Gintama: Gathering" is expected to undergo a release test in the second half of 2024 after completing two tests and optimizing its gameplay[5]. - The classic IP mobile game "弹弹堂X" is projected to complete its development by the fourth quarter of 2024, with user testing planned to gauge acceptance of product innovations[7]. - The company plans to launch the overseas version of the classic IP mobile game "神曲H5" in the second half of 2024, enhancing its global development strategy[7]. - The company is actively utilizing AIGC technology in game development to improve content and enhance research and development efficiency[6]. Market Overview - The domestic gaming market's actual sales revenue for the first half of 2024 was approximately RMB 147.3 billion, reflecting a year-on-year growth of about 2.1%[4]. - The global gaming market is projected to reach USD 187.7 billion in 2024, with a year-on-year growth of 4.5% in the number of global gamers[3]. Expenses and Cost Management - Research and development expenses amounted to approximately RMB 70.7 million, a reduction of about 27.9% compared to RMB 98.0 million in the previous year[15]. - Administrative expenses were approximately RMB 21.3 million, down about 27.3% from RMB 29.3 million in the same period of 2023[16]. - Sales and marketing expenses for the six months ended June 30, 2024, amounted to RMB 38.0 million, an increase of approximately 54.4% compared to RMB 24.6 million for the same period in 2023[17]. - Total expenses for the six months ended June 30, 2024, were RMB 165,891 thousand, a decrease of 14.03% compared to RMB 192,923 thousand in 2023[48]. Cash Flow and Financial Position - As of June 30, 2024, cash and cash equivalents were approximately RMB 50.2 million, a slight increase from RMB 48.1 million as of December 31, 2023[20]. - The total borrowings as of June 30, 2024, were zero, a decrease from RMB 231.0 million as of December 31, 2023, primarily due to the sale of a subsidiary[21]. - The debt-to-asset ratio as of June 30, 2024, was approximately 6.9%, down from 22.9% as of December 31, 2023, mainly due to the sale of Shanghai Ling Su[22]. - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 44,207,000, compared to RMB 26,278,000 for the same period in 2023[65]. Employee and Corporate Governance - As of June 30, 2024, the company had 313 full-time employees, with 71% in R&D, 13% in operations, and 16% in administration[31]. - Total employee compensation for the six months ended June 30, 2024, was approximately RMB 69.1 million, including salaries, bonuses, retirement costs, and other benefits[31]. - The company has complied with all applicable provisions of the corporate governance code as of June 30, 2024[77]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2024[78]. Shareholder Information - The company did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[56]. - The interim report for the six months ended June 30, 2024, will be available for shareholders and can be accessed on the company's website in September 2024[79].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 25% year-over-year growth[2]. - The company reported a significant increase in revenue, achieving a total of RMB 500 million, representing a 25% year-over-year growth[19]. - For the year ended 31 December 2023, the total revenue amounted to approximately RMB 627.7 million, representing an increase of approximately 16.1% compared to RMB 540.6 million in 2022[25]. - The Company recorded a loss attributable to owners of the Company of approximately RMB 146.5 million in 2023, representing a decrease of approximately 151.8% compared to 2022[25]. - The gross profit margin of the Company was 61.0%, with a gross profit of RMB 383.1 million, an increase of approximately 46.7% compared to RMB 261.2 million in 2022[25]. - The Group's game business revenue was approximately RMB 471.8 million, an increase of approximately 10.7% compared to RMB 426.1 million in the previous year, primarily driven by the game "DDTank Adventure" launched at the end of 2022[85]. - Revenue from cloud computing and related services was approximately RMB 148.1 million, representing a significant increase of approximately 39.2% compared to RMB 106.4 million in 2022[85]. User Engagement and Growth - Monthly Active Users (MAUs) reached 5 million, with an average of 1 million Monthly Paying Users (MPUs) contributing to the revenue[5]. - User data showed a total of 10 million active users, which is a 15% increase compared to the previous year[19]. - The Average Revenue Per Paying User (ARPPU) was recorded at $150, indicating a strong monetization strategy[3]. - The Average Revenue Per Paying User (ARPPU) for web games was approximately RMB 587, while for mobile games it was approximately RMB 729[79]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in that region[19]. Future Plans and Product Development - The company plans to launch two new mobile games in Q3 2024, aiming to expand its market presence and user base[4]. - A new product launch is scheduled for Q3 2024, expected to contribute an additional RMB 100 million in revenue[19]. - The company is exploring potential acquisitions to enhance its technology capabilities and expand its product offerings[4]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market share[19]. - The Group aims to expand its product portfolio by exploring user needs and developing new games across different genres in 2024[41]. Marketing and Brand Strategy - The company has increased its marketing budget by 30% to support the launch of new products and enhance brand visibility[5]. - The company has initiated a new marketing strategy aimed at increasing brand awareness, with a budget allocation of RMB 20 million[19]. Research and Development - Research and development expenses increased to RMB 50 million, accounting for 10% of total revenue, reflecting the company's commitment to innovation[19]. - R&D expenses increased to approximately RMB 168.5 million, representing a rise of approximately 30.1% compared to RMB 129.5 million in the previous year, due to increased investment in R&D[89]. - The Group has adopted AIGC technology in game development to enhance content creation and improve R&D efficiency[34]. Corporate Governance and Management - The company has a diverse board with members holding significant experience in finance, investment, and corporate governance[61]. - The management team is committed to maintaining high standards of financial oversight and strategic direction[58]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[128]. - The Company has established procedures for Directors to seek independent professional advice at the Company's expense when necessary[131]. Market Trends and Challenges - The global games market size was estimated to be US$184.0 billion in 2023, with over 3.3 billion game players worldwide, reflecting a year-on-year increase of 4.3%[71]. - The mobile games market size was estimated at US$90.5 billion in 2023, accounting for 49% of total industry revenue, with a year-on-year decrease of 1.4%[71]. - The cloud computing business faced significant challenges, resulting in a substantial impairment of related assets by the end of 2023, contributing to the Group's overall loss[39]. - The Group's cloud computing business did not grow as expected due to structural market differences and intense competition from larger internet companies[38]. Shareholder Engagement - The Company emphasizes effective communication with shareholders to provide timely access to material information, ensuring shareholders can exercise their rights informedly[189]. - The Board is satisfied that the Shareholders' communication policy has been effectively implemented during the year ended December 31, 2023[191]. - All resolutions at general meetings will be voted on by poll, with results published on the Company's and Stock Exchange's websites[195].

Financial Performance - Total revenue for the year ended December 31, 2023, was approximately RMB 627.7 million, an increase of 16.1% compared to the previous year[2] - The company recorded a loss attributable to owners of approximately RMB 146.5 million for the year ended December 31, 2023, a decrease of 151.8% compared to the previous year[2] - The company's total revenue for the year ended December 31, 2023, was approximately RMB 627.7 million, a 16.1% increase compared to the previous year[9] - The company's game business revenue for the year ended December 31, 2023, was approximately RMB 471.8 million, a 10.7% increase compared to the previous year, driven by the game "Dan Dan Tang Adventure"[10] - The company's cloud computing and related cloud services revenue for the year ended December 31, 2023, was approximately RMB 148.1 million, a 39.2% increase compared to the previous year[10] - The company's gross profit for the year ended December 31, 2023, was approximately RMB 383.1 million, a 46.7% increase compared to the previous year, with a gross margin of 61.0%, up 12.7 percentage points[12] - The company's net loss attributable to owners for the year ended December 31, 2023, was approximately RMB 146.5 million, a decrease of 151.8% compared to the same period in 2022[17] - Revenue for the year ended December 31, 2023, increased to RMB 627.732 million, up from RMB 540.630 million in 2022, representing a growth of approximately 16.1%[33] - Gross profit for 2023 was RMB 383.104 million, a significant increase from RMB 261.203 million in 2022, reflecting a 46.7% growth[33] - The company reported a net loss of RMB 144.894 million for 2023, compared to a net profit of RMB 279.606 million in 2022[33] - The company's total comprehensive loss for 2023 was RMB 146.912 million, compared to a total comprehensive income of RMB 285.629 million in 2022[34] - The company's earnings per share (basic and diluted) for 2023 was a loss of RMB 0.0569, compared to a profit of RMB 0.1097 in 2022[33] - The company's attributable loss was RMB 146,461 thousand in 2023, compared to a profit of RMB 282,499 thousand in 2022[52] Expenses and Costs - The company's R&D expenses for the year ended December 31, 2023, were approximately RMB 168.5 million, a 30.1% increase compared to the previous year, due to increased investment in R&D[13] - The company's administrative expenses for the year ended December 31, 2023, were approximately RMB 72.4 million, a 19.6% increase compared to the previous year, mainly due to increased property rental costs[14] - The company's sales and marketing expenses for the year ended December 31, 2023, were approximately RMB 49.8 million, a 56.9% decrease compared to the previous year, as promotional activities stabilized[15] - The company's cost of revenue for the year ended December 31, 2023, was approximately RMB 244.6 million, a 12.5% decrease compared to the previous year, mainly due to reduced game agency and IP amortization costs[11] - Research and development expenses increased to RMB 168.489 million in 2023, up from RMB 129.482 million in 2022, a rise of approximately 30.1%[33] - Employee benefit expenses increased to RMB 185,264 thousand in 2023 from RMB 158,704 thousand in 2022[49] - Promotion and advertising expenses decreased significantly to RMB 49,102 thousand in 2023 from RMB 115,408 thousand in 2022[49] - Financial costs net amounted to a loss of RMB 23,547 thousand in 2023, compared to a loss of RMB 20,178 thousand in 2022[50] - Income tax expense was RMB 4,685 thousand in 2023, compared to RMB 3,783 thousand in 2022[51] Game Business - The global gaming market size in 2023 is estimated at $184 billion, with mobile games accounting for 49% of the total revenue at $90.5 billion[4] - The company plans to launch the self-developed game "Dan Dan Tang X" in Q4 2024 and is pre-researching the sequel "Dan Dan Tang 2"[5] - The company's Japanese IP mobile game "Gintama Assembly" obtained a game license in February 2024 and is expected to undergo distribution testing within the year[5] - The company plans to expand its global distribution business, with "Dan Dan Tang Retro Edition" expected to undergo testing in North America, Europe, and other regions starting in Q2 2024[5] - The company's game business revenue for the year ended December 31, 2023, was approximately RMB 471.8 million, a 10.7% increase compared to the previous year, driven by the game "Dan Dan Tang Adventure"[10] - The company's average monthly active users for web games were approximately 0.7 million, with average monthly paying users of 32,300 and average revenue per paying user of RMB 587[7] - The company's average monthly active users for mobile games were approximately 0.7 million, with average monthly paying users of 65,000 and average revenue per paying user of RMB 729[7] - Revenue from self-developed games distributed by the company increased to RMB 356,996 thousand from RMB 165,569 thousand, while revenue from games distributed by other publishers decreased to RMB 112,961 thousand from RMB 151,949 thousand[46] - The company's game portfolio includes network games that can be played on various computer or mobile networks[71] - The company's games include web-based games that can be played directly in a browser without downloading any client or application[72] Cloud Computing Business - The company has signed an agreement to sell an indirect subsidiary responsible for the main part of its cloud computing business[6] - The company's cloud computing and related cloud services revenue for the year ended December 31, 2023, was approximately RMB 148.1 million, a 39.2% increase compared to the previous year[10] - Total revenue for 2023 was RMB 627,732 thousand, up from RMB 540,630 thousand in 2022, with cloud computing and cloud-related services contributing RMB 148,105 thousand, up from RMB 106,367 thousand[46] Capital and Investments - Cash and cash equivalents decreased by 54.1% to approximately RMB 48.1 million as of December 31, 2023, compared to RMB 104.7 million in 2022[18] - Total capital expenditures for the year ended December 31, 2023, were approximately RMB 47.8 million, a decrease of 74.0% compared to RMB 183.8 million in 2022[20] - The company's debt-to-asset ratio decreased to 22.9% as of December 31, 2023, from 28.2% in 2022[20] - The fair value of the company's investment in Shanghai Chaoxin was approximately RMB 383.5 million as of December 31, 2023, representing 16.9% of the company's total assets[23] - The company's total borrowings increased to approximately RMB 231.0 million as of December 31, 2023, compared to RMB 206.9 million in 2022[19] - The company's investment in Shanghai Chaoxin represents a 2.2% indirect stake, with a total capital commitment of RMB 380 million[23] - The company's capital expenditures on servers and other equipment decreased by 97.8% to RMB 4.02 million in 2023 from RMB 183.18 million in 2022[22] - The company's capital expenditures on office furniture and leasehold improvements increased by 164.8% to RMB 1.69 million in 2023 from RMB 639,000 in 2022[22] - The company's total assets decreased to RMB 1,928.117 million as of December 31, 2023, from RMB 1,955.212 million in 2022[35] - Cash and cash equivalents decreased to RMB 48.088 million in 2023, down from RMB 104.747 million in 2022[36] - The company's current liabilities decreased to RMB 349.477 million in 2023, compared to RMB 454.827 million in 2022[36] - Non-current liabilities increased to RMB 290,464 thousand from RMB 170,508 thousand, with lease liabilities at RMB 49,503 thousand, bank and other borrowings at RMB 112,656 thousand, and deferred tax liabilities at RMB 8,349 thousand[38] - Total equity attributable to the company's owners increased to RMB 1,900,609 thousand from RMB 1,751,913 thousand, with retained earnings rising to RMB 780,608 thousand from RMB 633,675 thousand[39] - The company's net current liabilities amounted to RMB 3,221 thousand, with non-refundable contract liabilities of RMB 35,354 thousand[42] - The fair value of financial assets at fair value through profit or loss increased to RMB 884,172 thousand in 2023 from RMB 696,359 thousand in 2022[55] - Total borrowings increased to RMB 231,003 thousand in 2023 from RMB 206,877 thousand in 2022, with secured other borrowings at RMB 181,003 thousand and unsecured bank borrowings at RMB 10,000 thousand[61] - The company entered into financing lease agreements for servers and equipment with a total cash consideration of RMB 256,000 thousand, with a lease term of 48 months and a repurchase option at the end of the lease term[61] - The actual annual interest rate for other borrowings ranges from 8.00% to 8.42%, secured by property, plant, and equipment valued at RMB 202,979 thousand and trade receivables of RMB 15,192 thousand[62] - The company received a bank loan of RMB 40,000 thousand in 2023 with an annual interest rate of 3.80%, secured by property, plant, and equipment valued at RMB 7,816 thousand and right-of-use assets valued at RMB 33,272 thousand[62] - An unsecured bank loan of RMB 10,000 thousand was obtained in 2023 with an annual interest rate of 3.70%, guaranteed by a subsidiary and repayable within one year[62] Corporate Governance and Compliance - The company did not declare or intend to declare any dividends for the year ended December 31, 2023[54] - The company confirmed compliance with the Corporate Governance Code for the year ended December 31, 2023[64] - The audit committee reviewed the annual results for the year ended December 31, 2023, and is composed of three independent non-executive directors[66] - The annual report for the year ended December 31, 2023, will be published on the company's website by the end of April 2024[68] - The company's shares are listed on the Main Board of the Hong Kong Stock Exchange under the stock code 797[70] - The company's board of directors includes executive directors Meng Shuqi, Li Zhengquan, and Yang Cheng, as well as independent non-executive directors Xue Jun, Li Yiqing, and Lyu Zhihao[72] - The company's financial reporting currency is the Chinese Yuan (RMB)[71] - The company has a subsidiary, Shenzhen Seventh Path Technology Co., Ltd., established under Chinese law in 2008[71] - The company has a subsidiary, Shanghai Super Silicon Semiconductor Co., Ltd., established under Chinese law[71] User Metrics and Definitions - Monthly paying users refer to the number of paying users during a specific calendar month[71] - Paying users are defined as registered users who have recharged their game accounts at least once with virtual items purchased from the company during a specified period, regardless of whether the virtual items were consumed[71] Other Financial Information - The company's estimated income tax rate for entities not exempt from tax ranged from 12.5% to 25% for the year ended December 31, 2023[16] - Impairment losses on trade receivables increased significantly to RMB 28,018 thousand from RMB 5,051 thousand, while other receivables impairment losses decreased to RMB 5,608 thousand from RMB 6,395 thousand[46] - Government grants decreased to RMB 3,235 thousand from RMB 6,312 thousand, and VAT refunds from China dropped to RMB 1,847 thousand from RMB 3,621 thousand[47] - Other net gains or losses amounted to a loss of RMB 180,227 thousand in 2023, compared to a gain of RMB 353,160 thousand in 2022[48] - Trade receivables decreased to RMB 169,254 thousand in 2023 from RMB 368,329 thousand in 2022[56] - Trade and other payables decreased to RMB 108,183 thousand in 2023 from RMB 239,241 thousand in 2022[59] - The company did not declare a final dividend for the year ended December 31, 2023, compared to no final dividend declared in the previous year[64]

Restricted Share Unit Plan - The total number of restricted share units held by the trustee under the restricted share unit plan was 178,932,000 shares as of December 31, 2022, and June 30, 2023[2][3]. - The company will comply with the relevant provisions of the Listing Rules regarding the restricted share unit plan[2]. - There are no provisions in the rules of the restricted share unit plan that limit the maximum allocation for each participant[2].

Financial Performance - For the six months ended June 30, 2023, the company recorded total revenue of approximately RMB 443.7 million, representing an increase of approximately 117.0% compared to RMB 204.5 million for the same period in 2022[11]. - The profit for the period attributable to owners of the company was approximately RMB 130.5 million, reflecting a decrease of approximately 45.7% compared to RMB 240.4 million for the same period in 2022[12]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 322.5 million, an increase of approximately 433.0% compared to RMB 60.5 million for the same period in 2022[65]. - Operating profit for the six months ended June 30, 2023, was approximately RMB 145.6 million, a decrease from RMB 306.0 million for the same period in 2022[58]. - Profit for the period was approximately RMB 130.4 million, down from RMB 240.3 million for the same period in 2022[58]. - Total comprehensive income for the period was RMB 131,188,000, compared to RMB 242,652,000 in the prior year, a decline of 45.9%[185]. - Earnings per share for the period attributable to owners of the Company was RMB 0.051, down from RMB 0.093 in the previous year[182]. Market Overview - The global gaming market size was estimated to be US$ 187.7 billion in 2023, with a year-on-year increase of 6.3%, and the number of game players worldwide reached nearly 3.4 billion[14]. - The mobile gaming market accounted for 49% of the total revenue of the gaming industry, estimated at US$ 92.6 billion in 2023, with a year-on-year increase of 0.8%[14]. - China's gaming market recorded actual sales revenue of RMB 144.263 billion from January to June 2023, representing a year-on-year decrease of 2.39% but a period-to-period increase of 22.2%[15]. - The number of game players in China reached a record high of approximately 668 million from January to June 2023[15]. - The gaming industry is expected to continue developing steadily, with the number of players projected to increase to nearly 3.8 billion by 2026, and the market size reaching US$ 2,124.7 billion[14]. Revenue Breakdown - In the first half of 2023, the Group generated revenue from online games of approximately RMB 356.8 million, representing a year-on-year increase of 118.4% compared to RMB 163.4 million in the same period of 2022[25]. - Revenue from the Group's cloud business in the first half of 2023 was approximately RMB 79.4 million, a year-on-year increase of 101.6% from RMB 39.4 million in the same period of 2022[26]. - Game business revenue was approximately RMB 356.8 million, reflecting an increase of approximately 118.4% compared to RMB 163.4 million for the same period in 2022, primarily driven by the new game "DDTank Adventure" launched at the end of 2022[59]. Expenses and Investments - Research and development expenses amounted to approximately RMB 98.0 million, representing an increase of approximately 118.8% compared to RMB 44.8 million for the same period in 2022[71]. - Selling and marketing expenses were approximately RMB 24.6 million, an increase of approximately 103.4% compared to RMB 12.1 million for the same period in 2022[73]. - Administrative expenses totaled approximately RMB 35.0 million, reflecting an increase of approximately 34.1% compared to RMB 26.1 million for the same period in 2022[72]. - Total capital expenditure for the six months ended June 30, 2023, was approximately RMB 9.1 million, a significant decrease of about 94.9% from RMB 179.5 million in the same period of 2022[89]. Cash Flow and Liquidity - Cash generated from operations increased significantly to RMB 230,455,000 in 2023 from RMB 30,529,000 in 2022, representing a growth of 654%[200]. - Net cash generated from operating activities rose to RMB 220,956,000 in 2023, compared to RMB 24,375,000 in 2022, marking an increase of 805%[200]. - Current liabilities decreased to RMB 370,916,000 from RMB 454,827,000, indicating improved liquidity management[188]. Legal Proceedings - The Group is involved in a legal proceeding with claims amounting to approximately RMB 11.7 million related to a game cooperative development agreement[115]. - The court ruled that Qianhai Huanjing must refund approximately RMB 6.6 million to the plaintiff, with the case still awaiting a verdict in the second trial[117]. - Qianhai Huanjing filed a lawsuit against Proficient City Limited (PCL) in March 2021, claiming approximately RMB 69.6 million related to intellectual property rights for the online game Wartune[119]. Employee and Shareholder Information - As of June 30, 2023, the Group had 442 full-time employees, with 65% in R&D, 19% in Operations, and 16% in Administration[109]. - Mr. Meng Shuqi holds 528,854,000 shares, representing 19.20% of the total issued share capital of 2,753,200,000 shares as of June 30, 2023[130]. - The interests of Directors and chief executives in the Company's shares and debentures as of June 30, 2023, are documented in compliance with regulatory requirements[128]. Future Plans and Strategies - The Group aims to enhance user value by leveraging the interactive and social attributes of games, focusing on overseas market expansion[26]. - The Group plans to release the overseas version of "Wartune H5" globally in the fourth quarter of 2023, following promising user data from North America[30]. - The Group plans to launch several new games in the second half of 2023, including "DDTank Adventure" and "Wartune H5" overseas edition, with the latter expected to be released globally in Q4 2023[37].

Financial Performance - For the six months ended June 30, 2023, the company recorded total revenue of approximately RMB 443.7 million, an increase of about 117.0% compared to RMB 204.5 million for the same period in 2022[2] - The company's profit attributable to owners for the six months ended June 30, 2023, was approximately RMB 130.5 million, a decrease of about 45.7% compared to RMB 240.4 million for the same period in 2022[2] - The company reported a revenue of RMB 443,652,000 for the six months ended June 30, 2023, compared to RMB 204,481,000 for the same period in 2022, representing a growth of 117.5%[36] - Gross profit for the period was RMB 322,478,000, significantly higher than RMB 60,502,000 in the previous year, indicating a gross margin improvement[36] - Operating profit decreased to RMB 145,594,000 from RMB 306,033,000 year-on-year, reflecting a decline of 52.4%[36] - Net profit for the period was RMB 130,446,000, down from RMB 240,302,000 in the prior year, a decrease of 45.8%[37] Revenue Breakdown - The company's online gaming revenue for the first half of 2023 was approximately RMB 356.8 million, up 118.4% from RMB 163.4 million in the same period of 2022[5] - The mobile gaming revenue accounted for 89.0% of the total online gaming revenue, while web game revenue accounted for 11.0%[6] - The cloud business generated revenue of approximately RMB 79.4 million in the first half of 2023, a growth of 101.6% compared to RMB 39.4 million in the same period of 2022[6] - Online gaming revenue reached RMB 356,808 thousand, a significant increase from RMB 163,363 thousand in the previous year, representing a growth of 118%[44] - Self-developed games contributed RMB 280,370 thousand, up from RMB 27,709 thousand, indicating a growth of 911%[44] - Cloud computing and related services revenue increased to RMB 79,424 thousand from RMB 39,392 thousand, marking a growth of 102%[44] User Engagement - The average monthly active users for web games were approximately 650,000, while mobile games had about 1.18 million active users, reflecting the company's strong user engagement[9] - The average revenue per paying user for mobile games increased by 336.0% year-on-year to RMB 811, showcasing improved monetization strategies[9] - The company reported a total of 1 million monthly active users, reflecting a strong engagement level within its gaming portfolio[66] - The average monthly paying users during the reporting period showed a significant increase, indicating a growing user base[65] Research and Development - Research and development expenses increased to RMB 97.98 million, compared to RMB 44.78 million in the previous year, reflecting the company's commitment to game quality and innovation[11] - Research and development expenses for the six months ended June 30, 2023, amounted to approximately RMB 98.0 million, an increase of about 118.8% from RMB 44.8 million in the same period of 2022[16] - The company is focusing on research and development to enhance its gaming offerings and introduce new technologies[66] Future Plans and Strategies - The company plans to test the Portuguese version of "弹弹堂大冒险" in Q3 2023 and aims for a global release of "神曲H5" in Q4 2023[7] - The company plans to launch multiple new games in the second half of 2023, including "弹弹堂大冒险" (Portuguese version) and "神曲H5" (global release), aiming to enhance its game portfolio[8] - The company aims to explore new product development and market expansion through investment in developers and resource collaboration to attract more players and increase gaming revenue[7] - Future outlook includes plans for market expansion and potential acquisitions to strengthen its competitive position[66] - The company aims to increase its monthly active users by 20% in the next fiscal year, driven by new game releases and marketing strategies[66] - The management team remains optimistic about achieving a revenue growth target of 15% year-over-year in the next financial period[66] Financial Position - As of June 30, 2023, cash and cash equivalents were approximately RMB 117.1 million, an increase from RMB 104.7 million as of December 31, 2022[21] - Total borrowings as of June 30, 2023, were approximately RMB 253.2 million, an increase from RMB 206.9 million as of December 31, 2022, primarily due to new loans obtained[22] - The debt-to-asset ratio as of June 30, 2023, was approximately 23.2%, a decrease from 28.2% as of December 31, 2022, mainly due to a reduction in total liabilities[23] - Total assets as of June 30, 2023, were RMB 2,061,782,000, an increase from RMB 1,955,212,000 at the end of 2022[38] - Current liabilities decreased to RMB 370,916,000 from RMB 454,827,000, a reduction of 18.4%[38] - The company's net asset value increased to RMB 2,032,488,000 from RMB 1,900,847,000, reflecting a growth of 6.9%[39] Employee and Compensation - The total employee compensation for the six months ended June 30, 2023, is approximately RMB 105.5 million, including salaries, bonuses, and other benefits[30] - The group has 442 full-time employees as of June 30, 2023, with 65% in R&D, 19% in operations, and 16% in administration[31] Legal and Compliance - The group is actively seeking legal advice regarding the trust plan investment and is considering all possible measures to recover related funds[35] - The group believes that the potential loss from the trust plan investment will not have a significant adverse impact on its business operations[35] - The company has complied with all applicable provisions of the corporate governance code as of June 30, 2023[61] - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2023[62] Other Financial Metrics - The company incurred a total tax expense of RMB 2,692 thousand, compared to RMB 59,362 thousand in the previous year, a decrease of 95%[48] - The company did not declare any interim dividends for the six months ended June 30, 2023, consistent with the previous year[51] - The company reported a net loss of RMB 12,833 thousand from other income or losses, compared to a gain of RMB 330,215 thousand in the previous year[46]

User Metrics and Revenue Analysis - The company's average monthly paying users (MPUs) are calculated as the average number of paying users in the relevant calendar month, with the average MPUs for a particular period being the average of the MPUs in each month during that period[3] - The company's monthly active users (MAUs) refer to the number of people logged in to specific game(s) in the relevant calendar month, with the average MAUs for a particular period being the average of the MAUs in each month during that period[8] - The company's ARPPU (average revenue per paying user) is calculated as the total revenue generated by paying users for a particular game, type of games, or all games during a certain period divided by the number of paying users during that period[3] - Monthly Paying Users (MPUs) refers to the number of paying users in the relevant calendar month[9] - Paying users are defined as registered users who charged their accounts with virtual items purchased from the company at least once in a given period, regardless of whether the items were consumed[9] - The company's web games had an average MAUs of approximately 0.6 million, MPUs of approximately 36,000, and ARPPU of approximately RMB522.1 for the year ended 31 December 2022[78] - The company's mobile games had an average MAUs of approximately 3.6 million, MPUs of approximately 482,000, and ARPPU of approximately RMB289.6 for the year ended 31 December 2022[78] - Total revenue for 2022 reached approximately RMB540.6 million, representing a 28.6% increase compared to 2021[23] - Profit attributable to owners of the company in 2022 amounted to approximately RMB282.5 million, a 199.8% increase from 2021[23][24] - Total revenue for 2022 was approximately RMB540.6 million, a 28.6% increase compared to RMB420.5 million in 2021[32][34] - Profit attributable to owners of the company in 2022 was approximately RMB282.5 million, a 199.8% increase compared to 2021[32][34] - Gross profit margin for 2022 was 48.3%, with gross profit increasing by 16.4% to RMB261.2 million from RMB224.5 million in 2021[32][34] - Online game revenue in 2022 was approximately RMB426.1 million, with mobile games accounting for 81.1% and web games for 18.9%[33][34] - Revenue from cloud computing and related services in 2022 was approximately RMB106.4 million, compared to RMB49.0 million in 2021[33][34] - Total revenue for 2022 was RMB540.6 million, a 28.6% increase compared to 2021, driven by the new game "DDTank Adventure"[84][85] - Game business revenue reached RMB426.1 million in 2022, a 68.0% increase year-over-year, primarily due to the success of "DDTank Adventure"[85] - Cloud business revenue grew to RMB106.4 million in 2022, a 117.3% increase compared to 2021, driven by the expansion of the newly launched cloud business[85] - Gross profit for 2022 was RMB261.2 million, a 16.4% increase from 2021, with a gross profit margin of 48.3%, down from 53.4% in 2021 due to higher cost of revenue[88] - R&D expenses increased by 62.0% to RMB129.5 million in 2022, reflecting higher investment in game development[88] - Selling and marketing expenses surged by 782.7% to RMB115.6 million in 2022, mainly due to marketing campaigns for new game launches[90] - Profit attributable to owners of the company rose by 199.8% to RMB282.5 million in 2022, largely due to gains from the Shouxin Disposal[92] - The company's total revenue for the year ended 31 December 2022 was RMB540.63 million, a 28.6% increase compared to the previous year[81] - The company's gross profit for the year ended 31 December 2022 was RMB261.20 million, a 16.4% increase compared to the previous year[81] - The company's research and development expenses increased by 62.0% to RMB129.48 million for the year ended 31 December 2022[81] - The company's selling and marketing expenses increased by 782.7% to RMB115.56 million for the year ended 31 December 2022[81] - The company's operating profit for the year ended 31 December 2022 was RMB307.37 million, a 714.8% increase compared to the previous year[81] - The company's profit before income tax for the year ended 31 December 2022 was RMB283.39 million, a 211.0% increase compared to the previous year[81] - The company's profit for the year ended 31 December 2022 was RMB279.61 million, a 185.3% increase compared to the previous year[81] Corporate Governance and Board Structure - The company's shares were listed on the Main Board of the Stock Exchange on 18 July 2018 (Stock Code: 797)[3] - The company's latest practicable date for ascertaining certain information in the annual report is 21 April 2023[4] - The company's consolidated affiliated entities include Shenzhen 7Road and its subsidiaries, controlled through contractual arrangements[4] - The company's annual general meeting (AGM) is proposed to be held on 23 May 2023[3] - The company's contractual arrangements were entered into on 13 April 2018[4] - The company's articles of association were conditionally adopted by the Board on 23 June 2018 and became effective on the listing date[3] - The company's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[4] - Shenzhen 7Road Technology Co., Ltd. is a consolidated affiliated entity established under PRC law on 22 January 2008[10] - Shenzhen Qianqi Network Technology Co., Ltd. is a consolidated affiliated entity established under PRC law on 28 November 2013[12] - Shanghai Xinla Network Technology Co., Ltd. is a wholly-owned subsidiary of the company as of the latest practicable date[12] - The company's RSU Scheme was adopted on 6 March 2018[10] - The company's shares are ordinary shares of US$0.000005 each in the issued share capital[10] - The company's board includes executive directors such as Mr. Meng Shuqi (Chairman) and independent non-executive directors like Mr. Xue Jun[14] - The company's audit committee is chaired by Mr. Xue Jun[14] - The company's remuneration committee is chaired by Ms. Li Yiqing[14] - The Board consists of seven Directors, including four executive Directors and three independent non-executive Directors, with no financial or familial relationships among them[124] - The Company has complied with the Corporate Governance (CG) Code provisions for the year ended 31 December 2022[121] - Independent non-executive Directors have signed three-year appointment letters and are subject to retirement by rotation at least once every three years[126] - The Board ensures that at least one-third of its members are independent non-executive Directors, with Mr. Xue Jun possessing appropriate professional qualifications[129] - Directors have access to joint company secretaries, Mr. Li Zhengquan and Mr. Cheung Kai Cheong, who completed at least 15 hours of professional training in 2022[131] - The Company has arranged insurance coverage for Directors against legal proceedings and allows them to seek independent professional advice at the Company's expense[128] - Employee remuneration is determined based on performance, experience, competence, and market comparables, including salaries, bonuses, RSUs, and allowances[120] - The Board oversees the Group's business, strategic decisions, and performance, delegating day-to-day operations to management[122] - The Company maintains high corporate governance standards, focusing on integrity, accountability, transparency, and fairness[121] - The Board of Directors has maintained compliance with the Listing Rules by appointing at least three independent non-executive directors, constituting one-third of the Board, including Mr. Xue Jun, who possesses appropriate professional qualifications or expertise in accounting or financial management[132] - All independent non-executive directors have provided written confirmation of their independence and have offered independent opinions and recommendations during the year ended 31 December 2022, demonstrating their independence and contributing significantly to the company and shareholders[132] - The company's joint company secretaries, Mr. Li Zhengquan and Mr. Cheung Kai Cheong, have completed no less than 15 hours of relevant professional training during the year ended 31 December 2022, ensuring compliance with Listing Rules[132] - All Directors participated in various continuous professional development (CPD) trainings during the year ended 31 December 2022, including updates on Listing Rules, Directors' responsibilities, and Environmental, Social, and Governance (ESG) reporting[134] - The Board has adopted a Board diversity policy and a nomination policy to ensure a balance of skills, experience, and diversity of perspectives, enhancing the effectiveness of the Board and maintaining high standards of corporate governance[138] - The Board currently comprises six male Directors and one female Director, achieving gender diversity, with detailed gender ratio data available in the Environmental, Social, and Governance Report for the year ended 31 December 2022[139] - The company held 17 Board meetings in 2022, with all Executive Directors and Independent Non-Executive Directors attending all meetings[143][144] - The company's Board consists of 6 male directors and 1 female director, achieving gender diversity[141] - The company held 4 Board committee meetings in 2022, with Audit Committee meetings attended by all Independent Non-Executive Directors[151][153] - The company's Chairman and CEO roles are separate, with Mr. Meng Shuqi as Chairman and Mr. Peng Cheng as CEO[145][146] - The company held 2 general meetings in 2022 (1 annual general meeting and 1 extraordinary general meeting), with all Directors attending both meetings[148][149] - The upcoming Annual General Meeting is scheduled for May 23, 2023, with notices to be sent at least 21 days in advance[149][150] - Board meeting agendas and documents are distributed to Directors at least 3 days prior to meetings[140][142] - The company has three principal Board committees: Audit Committee, Remuneration Committee, and Nomination Committee[151][152] - The Audit Committee reviewed the Group's annual results announcement for the year ended 31 December 2021 and interim results for the six months ended 30 June 2022[156] - The Remuneration Committee reviewed and made recommendations on the annual remuneration packages of executive Directors and senior management for the year ended 31 December 2022[158] - Details of the annual remuneration of senior management by band for the year ended 31 December 2022 are disclosed in the Director's Report[159] - The Nomination Committee reviewed the structure, size, and composition of the Board and recommended the re-election of Directors for the year ended 31 December 2022[162] - All Directors confirmed compliance with the Model Code for Securities Transactions during the year ended 31 December 2022[164] - The Company has a policy for handling and disseminating inside information to ensure compliance with statutory disclosure requirements[165] - The company paid a total of RMB 3,730,000 for audit and non-audit related services in 2022, with RMB 3,300,000 for audit services and RMB 430,000 for non-audit services[167] - The Board conducted an annual review of the Group's risk management and internal control systems in 2022, deeming them effective and adequate, covering financial, compliance, and operational controls[175] - The company has established an internal control department to regularly review and improve its internal control system, policies, and procedures to meet Listing Rules obligations and development requirements[175] - The company ensures the confidentiality and timely disclosure of inside information through internal policies, employee training, and restricted access to sensitive data[176] - The Board reviewed and confirmed that the company's resources, staff qualifications, training programs, and budget for accounting, compliance, legal, and financial reporting functions were adequate and effective in 2022[176] - The company maintains effective communication with shareholders through various channels including financial announcements, annual general meetings, and corporate publications on its website[179] - The company's website (www.7road.com) provides up-to-date information on business developments, financial data, and corporate governance practices[179] - The Board reviewed and confirmed the effectiveness of the Shareholders' communication policy for the year ended 31 December 2022[179] - Shareholders holding at least one-tenth of the paid-up capital with voting rights can requisition an extraordinary general meeting, which must be held within two months of the requisition[183] - The company ensures separate resolutions for each major issue at general meetings, including the election of individual Directors, with voting conducted by poll[182] - Shareholders can propose candidates for Director elections, with detailed procedures published on the company's website[186] - The company does not typically handle verbal or anonymous shareholder enquiries[187] - The Group's revenue and operating profit for the year ended 31 December 2022 are analyzed by principal activities in the "Management Discussion and Analysis" section[188] - The Group has distributable reserves amounting to RMB4,026.9 million as of 31 December 2022[197] - The Board resolved not to recommend the payment of any final dividend for the year ended 31 December 2022[190] - The Group's property, plant, and equipment movements for the year ended 31 December 2022 are detailed in note 16 of the consolidated financial statements[193] - The Group's share capital movements for the year ended 31 December 2022 are detailed in note 27 of the consolidated financial statements[197] - The Group's reserves movements for the year ended 31 December 2022 are detailed in the Consolidated Statement of Changes in Equity and note 41 of the consolidated financial statements[197] - The Group has implemented environmental protection measures and encourages staff to reduce energy consumption and minimize unnecessary waste[197] - The Group's financial summary for the last five financial years is set out on pages 10 to 11 of the annual report[192] - The Group's principal activities include R&D, operation, and publication of games, as well as providing cloud computing services[188] - The Group has complied with relevant laws and regulations that have a significant impact on the Company in material respects[188] - Mr. Meng Shuqi's executive Director service contract was renewed for three more years on 18 July 2021, with an initial term starting from 18 July 2018[200] - Mr. Yang Cheng's executive Director service contract was renewed for three more years on 29 October 2021, with an initial term starting from 29 October 2018[200] - Mr. Li Zhengquan's executive Director service contract was renewed for three more years on 30 April 2022, with an initial term starting from 30 April 2019[200] - Mr. Peng Cheng's executive Director service contract commenced on 8 March 2023 for a term of three years[200] - Executive Directors' service contracts can be terminated with not less than three months' notice in writing[200] - Independent non-executive Directors have appointment letters with a three-year term, terminable with not less than three months' notice[200] - Independent non-executive Directors are entitled to a fixed Director's fee under their appointment letters[200] Business Strategy and Market Expansion - The company focused on expanding gaming IP, improving game quality, and integrating R&D and operations to achieve globalization[29] - The company continued to develop classic games, upgrade characters, and enhance game plots to improve gameplay and profit models[29] - The company leveraged extensive resources to invest in the global market through refined marketing and explored innovative promotion channels[29] - The company established a user ecosystem with a long life cycle, focusing on core capabilities and creating a multi-dimensional interaction model with users[29] - The company built three main business lines: self-developed games and licensing, partnerships with quality vendors, and operation of selected games[29] - The company collaborated with leading vendors to enhance business development and resource consolidation, strengthening its industry competitiveness[29] - The company focused on independent development of competitive leisure games, MMORPGs, and card games, while also distributing a wide range of games[35][36] - The company's gaming market strategy focuses on the domestic market, with plans to further expand its own IP in overseas markets[35][36] - The company's online game revenue was mainly derived from classic games such as the "DDTank" series, "Three Kingdoms" series, and "Wartune" series[35][36] - The new mobile game "DDTank Adventure" achieved first-day sales of nearly RMB30 million and first-week sales of RMB100 million, ranking Top 3 on the App Store's bestselling chart on its launch day[37][38] - "DDTank Classics" performed well in Vietnam and Taiwan, staying on the Taiwan iOS top 10 bestselling charts for one week after its launch in July 2022[37][38] - The "Three Kingdoms" series game maintained strong appeal and competitiveness, receiving high ratings from players and the industry[39] - The sandbox game "Concave-Convex World" remained popular on the Roblox platform, with over 1 billion views on Bilibili and other platforms[39] - The company's cloud computing business expanded steadily, providing services for rendering, AI, big data supercomputing, and blockchain technology since 2021[39] - The company invested in Shanghai Advanced Silicon Technology Co., Ltd., a leading domestic manufacturer of large-scale semiconductor silicon chips, to expand its cloud business upstream and downstream[40] - The next-generation "DDTank" product is under development, featuring card-based gameplay and significant innovations in character artwork, storyline, and core gameplay[37][38] - The company's data-driven development and refined operation activities maintained the long life cycle of games and player activity, boosting domestic revenue growth[37][38] - The company strategically prioritized major customers in its cloud computing business, signing long-term service cooperation agreements with well-known domestic companies[39] - The company plans to focus on competitive leisure games, MMORPGs, and card games, leveraging global resources and R&D capabilities to enrich its product lines[39] - The Group plans to launch "DDTank Adventure" in other overseas regions in the second half of 2023 and will introduce a mini program version and an overseas mobile game version of "Wartune H5" around mid