香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 7Road Holdings Limited 第七大道控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：797） 截至二零二二年十二月三十一日止年度的 年度業績公告 董事會宣佈本集團截至二零二二年十二月三十一日止年度的經審核綜合年度 業績（「年度業績」），連同截至二零二一年十二月三十一日止年度的比較資料。 財務表現摘要 | --- | --- | --- | |--------------------------|-----------------------------|---------------------------| | | 截至十二月三十一日止年度 | | | | 二零二二年 （人民幣千元） | 二零二一年 （人民幣千元） | | 收益 | 540,630 | 420,543 | | 年內溢利 | 279,606 | 97,990 | | 本公司擁有人應佔年內溢利 | 282,4 ...

Financial Performance - For the six months ended June 30, 2022, the company recorded total revenue of approximately RMB 204.5 million, representing an increase of approximately 86.7% compared to the same period in 2021[9]. - The profit for the period attributable to owners of the company amounted to approximately RMB 240.4 million, reflecting an increase of approximately 688.2% compared to the same period in 2021[9]. - The company achieved a profit for the period of RMB 240.3 million, significantly up from RMB 30.4 million in the previous year[9]. - The substantial growth in revenue and profit indicates a strong market performance and operational efficiency improvements[9]. - The Group's gross profit for the first half of 2022 was RMB 60,502,000, compared to RMB 47,061,000 in the same period in 2021, marking an increase of approximately 28.5%[38]. - Operating profit for the first half of 2022 was RMB 306,033,000, a significant improvement from an operating loss of RMB 15,035,000 in the same period of 2021[38]. - Profit for the period reached RMB 240,302,000, compared to RMB 30,429,000 in the same period of 2021, indicating a substantial increase in profitability[38]. - Total comprehensive income for the period was RMB 242,652,000, compared to RMB 34,897,000 in the same period of 2021, reflecting a growth of 594.5%[105]. Market Trends - The global games market size is estimated to be US$196.8 billion in 2022, with a year-on-year increase of 2.1% and the number of global game players close to 3.2 billion[11]. - The mobile games market size is estimated to be US$103.5 billion in 2022, accounting for 53% of total industry revenue, with a year-on-year increase of 5.1%[11]. - The actual sales revenue of China's game market from January to June 2022 was RMB147.789 billion, representing a year-on-year decrease of 1.80%[12]. - The overseas market for China's proprietary games recorded actual sales revenue of US$8.989 billion from January to June 2022, with a year-on-year increase of 6.16%[12]. - The metaverse market scale in China is expected to reach RMB126.35 billion in 2027, with an average compound annual growth rate of 32.98% from 2022 to 2027[12]. - The global cloud computing market is expected to grow from US$445.3 billion in 2021 to US$947.3 billion in 2026, representing a compound annual growth rate of 16.3%[13]. - The cloud computing market in China exceeded RMB230 billion in 2021 and is expected to exceed RMB300 billion in 2023[13]. Business Strategy and Future Outlook - The company is focused on expanding its market presence and enhancing its product offerings to sustain growth in the future[9]. - Future outlook includes continued investment in new technologies and product development to drive further revenue growth[9]. - The management is optimistic about maintaining this growth trajectory in the upcoming quarters[9]. - The company plans to explore potential mergers and acquisitions to enhance its competitive position in the market[9]. - Strategic initiatives are being implemented to optimize operational processes and improve profitability margins[9]. - The Group is focusing on the development of casual competitive games and MMORPGs, aiming to attract more players and increase gaming business revenue[16]. - The Group plans to enhance game quality and diversify its IP product line, including original creations and anime adaptations, to enrich its product portfolio in the second half of 2022[20][21]. - The Group aims to continue R&D of high-quality IP through licensing and cooperation, focusing on acquiring potential IPs and excellent R&D companies to enhance its industry position[26]. Revenue Breakdown - In the first half of 2022, the Company's online game revenue was approximately RMB163.4 million, a 75.4% increase from approximately RMB93.1 million in the same period of 2021, with mobile games accounting for 78.5% of the revenue[15]. - The revenue from the Group's game business was RMB 163.4 million, reflecting an increase of approximately 75.6% compared to the six months ended June 30, 2021, primarily due to the launch of new licensed games[41]. - The Group's online game revenue accounted for 79.9% of total revenue for the six months ended June 30, 2022, compared to 84.9% in the same period in 2021[40]. - Revenue from sales of game copyrights was RMB 66.7 million, representing 32.6% of total revenue for the six months ended June 30, 2022[40]. - The Group's cloud computing and related services contributed 19.3% to total revenue for the six months ended June 30, 2022[40]. Cost and Expenses - The cost of revenue amounted to approximately RMB 144.0 million for the six months ended June 30, 2022, representing an increase of approximately 130.5% compared to RMB 62.5 million for the same period in 2021[44]. - The gross profit margin decreased to approximately 29.6% for the six months ended June 30, 2022, down from approximately 43.0% for the same period in 2021, primarily due to lower margins in the cloud business[45]. - R&D expenses for the six months ended June 30, 2022, amounted to approximately RMB 44.8 million, an increase of 27.4% compared to RMB 35.2 million for the same period in 2021[48]. - Administrative expenses decreased by 23.7% to approximately RMB 26.1 million for the six months ended June 30, 2022, down from RMB 34.2 million in the same period of 2021 due to enhanced cost management[48]. - Selling and marketing expenses increased by 73.1% to approximately RMB 12.1 million for the six months ended June 30, 2022, compared to RMB 7.0 million for the same period in 2021, primarily due to increased promotion costs for new game launches[48]. Legal Matters - The amount claimed by Zhang Ying Kong in the April 2020 lawsuit was approximately RMB 11.7 million, with a preliminary judgment requiring Qianhai Huanjing to refund RMB 6.6 million[73]. - Qianhai Huanjing's claims in the March 2021 lawsuit against Proficient City Limited amounted to approximately RMB 69.6 million, with a preliminary judgment awarding RMB 29 million plus interest[74]. - The directors believe that the ongoing legal proceedings are not expected to affect the normal business operations of the Group[74]. - The ongoing lawsuits highlight the importance of intellectual property rights in the online gaming sector, which is critical for the Group's business strategy[74]. Shareholder Information - Mr. Meng Shuqi holds 528,854,000 shares, representing approximately 19.20% of the issued share capital as of June 30, 2022[77]. - As of June 30, 2022, the total number of shares in issue is 2,753,200,000[86]. - The RSU Scheme was approved on March 6, 2018, to incentivize Directors, senior management, and employees for their contributions to the Group[90]. - The Company did not purchase, sell, or redeem any Shares during the six months ended June 30, 2022[95]. - The Board did not recommend an interim dividend for the six months ended June 30, 2022[95]. Cash Flow and Liquidity - Net cash generated from operating activities was RMB 24,375,000, a decrease from RMB 33,098,000 in the same period last year[122]. - The company reported a total cash outflow of RMB 133,170,000 for the acquisition of a subsidiary[122]. - The net decrease in cash and cash equivalents for the six months ended June 30, 2022, was RMB (85,981,000), compared to a decrease of RMB (8,447,000) in the same period of 2021, reflecting a worsening liquidity position[124]. - Cash and cash equivalents at the end of the period were RMB 23,087,000, a significant drop from RMB 369,708,000 at the end of June 2021[124]. Investment Activities - The Group has signed strategic cooperation agreements with well-known domestic companies to provide algorithms and cloud computing resources, enhancing its cloud business capabilities[34]. - The Group is strategically investing in upstream and downstream industry chains, including an indirect investment in Shanghai Advanced Silicon Technology Co., Ltd., a leading semiconductor manufacturer[18]. - The investment in Shanghai Silicon is expected to create business synergies with the Group's cloud business and generate investment returns in the future[65]. Compliance and Governance - The Company has complied with all applicable code provisions of the CG Code for the six months ended June 30, 2022[95]. - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited interim financial information for the six months ended June 30, 2022[98][99]. - The Group has engaged professional service firms for compliance matters and has complied with relevant laws and regulations during the reporting period[97].