Financial Performance - The company's total revenue for the year ended December 31, 2022, increased by 82.8% year-on-year to RMB 191.5 million[9]. - The loss attributable to equity holders of the parent company narrowed by 62.1% year-on-year to RMB 29.6 million[9]. - Total assets as of December 31, 2022, amounted to RMB 625.7 million, a decrease from RMB 668.5 million in 2021[10]. - The total equity as of December 31, 2022, was RMB 456.5 million, down from RMB 493.9 million in 2021[10]. - The gross profit margin for 2022 increased by 1,378 basis points to 80.5% compared to the previous year[16]. - The company's total revenue for 2022 was approximately RMB 191.5 million, representing a year-on-year increase of 82.8%[16]. - The net loss attributable to the company's owners narrowed by 62.1% year-on-year to RMB 29.6 million in 2022[16]. - The revenue for the year ended December 31, 2022, was approximately RMB 191.5 million, an increase of 82.8% compared to RMB 104.8 million for the previous year[35]. - The gross profit rose by approximately 120.5% to RMB 154.2 million, with a gross margin of 80.5% for the year ended December 31, 2022, compared to 66.7% the previous year[40]. - The company reported a net loss of RMB 24.4 million for the year ended December 31, 2022, a reduction of 68.2% compared to a loss of RMB 76.6 million the previous year[35]. User Engagement and Game Development - The company has over 660 million users in a market valued at over RMB 1 trillion[11]. - The cumulative registered users for the "Defend the Carrot" series reached 672.1 million as of December 31, 2022, contributing significantly to the company's growth in 2022[12]. - The company launched three new games in 2022, including "Mushroom War 2," "Doubt," and "Defend the Carrot 4," with "Doubt" achieving over 1 million users and RMB 10 million in recharge consumption within its first week[17]. - The "Defend the Carrot 4" game achieved top rankings in multiple app stores upon release, including the Apple China App Store and TapTap[18]. - The average monthly active users (MAU) for RPG mobile and online games was approximately 0.4 million as of December 2022, with mobile games accounting for 0.3 million and online games for 0.1 million[30]. - The average monthly paying users (MPU) for mobile RPG games increased significantly to 75, up 341.2% from 17 in the previous year[31]. - The company plans to launch two major new games in 2023, "Xianxiandao 3" and "Meow Island," both of which have received publishing licenses[24]. - The company continues to implement various in-game promotions and updates to enhance user engagement and retention[33]. - The company aims to optimize existing games to extend their lifecycle and create long-tail value in 2023[13]. Market Challenges and Strategic Focus - The gaming industry in China is experiencing increased competition and tighter regulations, impacting growth dynamics[11]. - The company faced challenges in the online gaming industry, with total revenue in the sector declining by 10.3% year-on-year to RMB 265.9 billion in 2022[16]. - The company aims to leverage its diverse portfolio of popular games to drive growth in a challenging market environment[11]. - The company is focusing on developing original intellectual property to enhance brand recognition and user acquisition[11]. - The company plans to launch prequels and sequels of popular games to capitalize on existing user bases and brand strength[11]. Financial Position and Cash Flow - The net cash flow used in operating activities for 2022 was RMB (4,496) thousand, a significant improvement of 91.6% compared to RMB (53,226) thousand in 2021[55]. - The net cash flow from investing activities for 2022 was RMB 22,329 thousand, a turnaround of 131.6% from RMB (70,622) thousand in 2021[55]. - The total cash and cash equivalents at the end of 2022 amounted to approximately RMB 133.2 million, representing a year-on-year increase of 5.5% from RMB 126.3 million in 2021[55]. - The group’s financial assets measured at fair value through other comprehensive income amounted to approximately RMB 126.3 million as of December 31, 2022, down from RMB 179.8 million in 2021[57]. - The group’s debt-to-asset ratio as of December 31, 2022, was 27.0%, an increase from 26.1% as of December 31, 2021[84]. Corporate Social Responsibility and ESG Initiatives - The company is committed to corporate social responsibility through sustainable practices and community engagement initiatives[97][98]. - The company established an Environmental, Social, and Governance (ESG) working group to oversee its ESG strategies and report on performance[116]. - The company emphasizes the importance of stakeholder feedback on its ESG policies and performance[106]. - The company aims to create a healthy virtual gaming environment based on player interests and expectations[107]. - The company has implemented a consistent reporting framework for its ESG performance to allow stakeholders to make fair comparisons over time[104]. - The company is committed to implementing the United Nations Sustainable Development Goals, focusing on seven key areas related to sustainability[120]. - The company aims to reduce its environmental footprint, including greenhouse gas emissions and waste, while improving energy and water efficiency[121]. Employee Engagement and Development - The company employed 365 full-time employees as of December 31, 2022, with 59.2% in development roles[92]. - The employee turnover rate increased to 53% in 2022 from 37% in 2021, with a notable rise in turnover among employees aged 21 to 30, reaching 72%[140]. - The company provided a total of 1,690 training hours for employees in the current year, reflecting a commitment to employee development[157]. - The percentage of male employees receiving training was 63.71%, while female employees accounted for 36.29% of the training participants[158]. - The average training hours per employee were 2.85 for males and 3.32 for females in 2022[158]. Environmental Impact and Sustainability Efforts - The company reduced greenhouse gas emissions to 554.67 tons CO2 equivalent in 2022, compared to 487.55 tons in 2021[170]. - The total waste generated by the company was 318.98 tons, an increase from 255.36 tons in 2021[173]. - The total waste recycled was 157.49 tons, significantly up from 71.98 tons in 2021[173]. - The company implemented energy-saving measures to improve energy efficiency and reduce unnecessary energy consumption[168]. - The company aims to minimize daily operational waste and promote the "3R" concept of reducing, reusing, and recycling[168].

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 全部或任何部分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。 Feiyu Technology International Company Ltd. 飛魚科技國際有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1022） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 公 告 董事會欣然宣佈本集團截至二零二二年十二月三十一日止年度的綜合年度業 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 二零二一年 變動% （人民幣千元）（人民幣千元） （經審核） （經審核） 收益 191,519 104,788 82.8 毛利 154,201 69,929 120.5 除稅前虧損 (23,129) (73,574) (68.6) 除稅後虧損 (24,356) (76,561) (68.2) ...

Financial Performance - The total revenue for the first half of 2022 was approximately RMB 743.43 million, representing a year-on-year increase of 43.9%[13] - Gross profit for the same period was RMB 572.06 million, reflecting a growth of 58.2% compared to the previous year[13] - The company reported a pre-tax loss of RMB 69.47 million, which is a 15.4% increase from the previous year's loss of RMB 60.20 million[13] - The loss attributable to equity holders of the parent company slightly decreased by 1.6% to RMB 95.20 million from RMB 96.77 million in the same period last year[13] - Game operation revenue for the first half of 2022 was approximately RMB 58.9 million, a 77.9% increase from RMB 33.1 million in the same period of 2021[26] - The company reported a net loss of RMB 7.8 million for the six months ended June 30, 2022, a slight improvement from a loss of RMB 8.5 million in the same period of 2021[37] - Other income and gains decreased by approximately 23.8% from RMB 15.1 million to RMB 11.5 million for the six months ended June 30, 2022, primarily due to a drop in investment income from RMB 7.9 million to RMB 3.6 million[46] Assets and Liabilities - As of June 30, 2022, total assets amounted to RMB 633.79 million, down 5.2% from RMB 668.50 million at the end of 2021[14] - Total equity was RMB 483.14 million, a decrease of 2.2% from RMB 493.91 million at the end of the previous year[14] - The company experienced a 28.9% decrease in current liabilities, which stood at RMB 63.16 million compared to RMB 88.80 million previously[14] - Cash and cash equivalents totaled approximately RMB 107.8 million as of June 30, 2022, down from RMB 126.3 million as of December 31, 2021, mainly due to cash used in operating activities[61] - The total bank loans amounted to approximately RMB 75.0 million, a decrease from RMB 80.0 million as of December 31, 2021, with RMB 10.0 million due within one year[63] - The company has lease liabilities of approximately RMB 7.1 million, up from RMB 2.0 million as of December 31, 2021[63] Game Development and Launches - The company attributed its stable financial performance to a diversified game portfolio and the successful launch of new games during the reporting period[16] - The company launched three new games in the first half of 2022: "Mushroom Wars 2," "Duoqi," and "Defend the Carrot 4" [17] - "Duoqi" achieved over 1 million users and RMB 10 million in recharge consumption within its first week of launch [17] - "Defend the Carrot 4" had over 600 million registered users as of June 30, 2022, and became a trending topic on social media upon release [18] - The average Monthly Active Users (MPU) for mobile RPG games rose significantly from approximately 23,000 to 146,000, primarily due to the launch of "斗詭" in May 2022[32] - The Average Revenue Per Paying User (ARPPU) for mobile RPG games decreased by 53.6% from RMB 91.6 to RMB 42.5, attributed to the early lifecycle stage of "斗詭" which resulted in lower ARPPU[35] Marketing and Licensing - The company signed 6 new licensing agreements in the first half of 2022 to expand its intellectual property licensing efforts [18] - The company aims to increase the number of licensed products featuring "Defend the Carrot 4" elements, focusing on fast-moving consumer goods, stationery, and apparel [21] - The company continues to collaborate with existing licensing partners to develop new products, launching 15 new licensed physical products during the reporting period [20] Research and Development - Research and development costs rose by 17.6% to RMB 36.9 million, reflecting the company's ongoing investment in new game development[37] - The company plans to continue launching various in-game promotions and updates to enhance user engagement and retention[35] Corporate Governance and Structure - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[194] - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balance of experience and qualifications[198] - The company has adopted a post-IPO share option scheme and restricted share unit plan as part of its long-term incentive program[137] Shareholder Information - The total number of shares issued as of June 30, 2022, was 1,718,826,062[147] - The family trusts mentioned hold significant equity stakes in the company, with Honour Gate Limited owning 161,538,000 shares[143] - The company has maintained sufficient public float as per the listing rules as of the report date[192]

Financial Performance - Total revenue for the year 2021 was RMB 104,788,000, a decrease of 10.5% compared to RMB 117,004,000 in 2020[14] - Gross profit for 2021 was RMB 69,929,000, down from RMB 82,419,000 in 2020, reflecting a gross margin decline[14] - The company reported a loss before tax of RMB (73,574,000) for 2021, compared to a loss of RMB (16,900,000) in 2020[14] - The company reported a net loss attributable to owners of the parent of RMB (78,103,000) for 2021, compared to RMB (21,460,000) in 2020[14] - The basic and diluted loss per share for 2021 was RMB (0.05), compared to RMB (0.01) in 2020[14] - The company recorded a loss of RMB 76.6 million for the year, compared to a loss of RMB 21.5 million in the previous year[22] - The company reported a net loss of RMB 76.6 million for the year ended December 31, 2021, compared to a net loss of RMB 18.1 million in 2020, representing an increase of 322.5%[52] Assets and Equity - Total assets as of December 31, 2021, were RMB 668,500,000, an increase from RMB 634,063,000 in 2020[15] - Total equity increased to RMB 493,907,000 in 2021 from RMB 489,166,000 in 2020[15] - Non-current assets amounted to RMB 481,546,000, up from RMB 430,922,000 in the previous year[15] - Current liabilities were RMB 88,801,000, slightly up from RMB 84,217,000 in 2020[15] - The company’s net current assets decreased by 17.5% to approximately RMB 98.2 million as of December 31, 2021, from RMB 118.9 million in the previous year[74] Revenue Breakdown - The total revenue from game operations for the year ended December 31, 2021, was RMB 70,487 thousand, representing 67.2% of total revenue, compared to RMB 65,757 thousand or 56.2% in the previous year[39] - Game operations contributed approximately RMB 70.5 million in revenue, a year-on-year increase of about 7.2% from RMB 65.8 million in 2020, driven by updates to the "Defend the Carrot" series[42] - Online game distribution revenue decreased by approximately 75.3% to about RMB 7.2 million, primarily due to the late life cycle of "Kaji Adventure Team" and the maturity of "Soul Device Academy" in the first half of 2020[55] - Licensing and intellectual property-related income increased by approximately 29.4% to about RMB 6.9 million, mainly due to a one-time licensing fee of approximately RMB 2.0 million recognized after terminating a simulation game licensing agreement[55] - Advertising revenue increased by approximately 20.1% to about RMB 20.2 million, driven by collaboration with a new advertising platform[55] Game Development and Strategy - The company has nine game development teams focusing on various genres, including RPG and FPS[23] - The company launched three new mobile games in 2021 and updated an existing RPG game to enhance user experience[23] - The "Defend the Carrot" game series has accumulated over 6 million registered users, positioning the company favorably for IP licensing opportunities[23] - The company expanded its IP licensing activities by adding five new product partners for "Defend the Carrot" characters and images[23] - The company plans to launch "Defend the Carrot 4" and "Xianxian Road 3" in 2022, indicating a focus on developing sequels to popular games[18] - The company aims to enhance its R&D and game operation capabilities to develop engaging and innovative games for a diverse user base[19] - The company plans to launch 5 to 6 new mobile games targeting both domestic and international markets in 2022, including sequels to popular titles "Defend the Carrot 4" and "God仙道3"[31] User Engagement and Metrics - As of December 31, 2021, the company had approximately 229.1 million registered users for RPG mobile and online games, with 173.0 million for online games and 56.1 million for mobile games[43] - The average Monthly Active Users (MAU) for RPG mobile games decreased from approximately 25,000 in 2020 to 17,000 in 2021, while the MAU for casual games decreased from 102,000 to 88,000[46] - The Average Revenue Per Paying User (ARPPU) for online RPG games increased from RMB 147.0 in 2020 to RMB 164.5 in 2021, primarily due to increased spending by loyal players[50] - Casual games' ARPPU rose from RMB 9.9 in 2020 to RMB 16.7 in 2021, attributed to frequent updates and new features in the "Defend the Carrot" series[50] Research and Development - Research and development costs increased by 47.3% from RMB 56.8 million in 2020 to RMB 83.6 million in 2021, reflecting the company's focus on new game development[52] - The company has established a game content review team to ensure compliance with relevant laws and regulations, focusing on player health and safety[30] - The company is developing approximately 5 additional games planned for release in 2023 and beyond, either developed in-house or sourced from third-party developers[31] Cash Flow and Financing - The company recorded a net cash outflow from operating activities of RMB 53.2 million, compared to an outflow of RMB 35.5 million in the previous year, indicating a worsening cash flow situation[76] - Cash and cash equivalents decreased to approximately RMB 126.3 million as of December 31, 2021, down 9.3% from RMB 139.2 million at the end of 2020[76] - The company had bank loans totaling approximately RMB 80.0 million as of December 31, 2021, an increase from RMB 63.8 million in 2020, with a portion used for the construction of the R&D center[78] - The company’s financing activities generated a net cash inflow of RMB 112.1 million, contrasting with a net outflow of RMB 56.2 million in the previous year, indicating improved financing conditions[76] Employee and Organizational Structure - The company had a total of 464 full-time employees as of December 31, 2021, with 61.9% in development, 19.0% in operations, and 17.0% in administration[136] - The employee distribution by gender in 2021 showed 283 males and 171 females, while in 2020, there were 291 males and 173 females[185] - The company has adopted a post-IPO share option scheme and restricted share unit plan as part of its long-term incentive program[139] - Attractive employee benefits include a five-day work week, paid annual leave, discretionary bonuses, and training subsidies[194] Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) issues for long-term business success[160] - The board of directors is responsible for the company's ESG strategy and reporting, including risk identification and management[162] - The company has established an ESG working group to implement strategies and collect relevant data across departments[160] - The company supports the United Nations Sustainable Development Goals and has selected 7 relevant goals for its business activities[164] - The company is committed to reducing its environmental footprint, including greenhouse gas emissions and waste, while improving energy and water efficiency[182] - The company has implemented green operational policies to mitigate climate change impacts[182] - The company maintains a zero-tolerance policy towards discrimination, harassment, and bullying, ensuring a transparent career platform for employees[194] Community Engagement - The company has committed to community investment and collaboration with charitable organizations to enhance community resources[182] - The company organized fewer employee activities during the reporting year due to the pandemic but still focused on employee well-being through health and entertainment activities[199] - Special compensation leave and rewards were provided to employees affected by travel restrictions during the COVID-19 pandemic[198]

Financial Performance - For the first half of 2021, the company's total revenue was approximately RMB 51.67 million, representing a year-on-year increase of 9.7%[14] - The gross profit for the same period was RMB 36.17 million, reflecting an 11.1% increase compared to RMB 32.54 million in the previous year[14] - The pre-tax loss was reduced by 72.5% to RMB 6.02 million from RMB 21.89 million in the prior year[14] - The loss attributable to equity holders of the parent company decreased by 56.8% to approximately RMB 9.68 million, down from RMB 22.41 million[14] - Total revenue increased by 9.7% from RMB 47.1 million in the six months ended June 30, 2020, to RMB 51.7 million in the same period of 2021[39] - Game operation revenue rose by approximately 8.6% from RMB 30.5 million to RMB 33.1 million, largely due to the positive reception of "Neon Abyss" launched in July 2020[40] - Licensing and intellectual property-related income surged by approximately 1,453.6% from RMB 0.4 million to RMB 5.8 million, due to the recognition of various licensing fees[41] - Advertising revenue increased by about 13.2% to approximately RMB 8.8 million, attributed to a partnership with Huawei Software Technology Co., Ltd.[41] - Gross profit rose by 11.1% from RMB 32.5 million to RMB 36.2 million, with a gross margin of 70.0% compared to 69.1% in the previous year[44] - Other income and gains increased by approximately 91.5% from RMB 7.9 million to RMB 15.1 million for the six months ended June 30, 2021, primarily due to investment income rising from RMB 1.8 million to RMB 7.9 million[45] Asset and Equity Growth - Non-current assets increased by 5.8% to RMB 456.11 million from RMB 430.92 million at the end of 2020[15] - Current assets rose by 18.5% to RMB 240.62 million compared to RMB 203.14 million at the end of 2020[15] - Total assets increased by 9.9% to RMB 696.73 million from RMB 634.06 million at the end of 2020[15] - Total equity increased by 16.1% to RMB 567.89 million from RMB 489.17 million at the end of 2020[15] - Net current assets increased by approximately 42.1% from RMB 118.9 million to RMB 168.9 million, mainly due to Tencent's share subscription[59] - Cash and cash equivalents increased by approximately 29.2% from RMB 139.2 million to RMB 179.8 million[61] - As of June 30, 2021, the total cash and cash equivalents amounted to approximately RMB 179.8 million, an increase from RMB 139.2 million as of December 31, 2020, primarily due to Tencent's subscription activities and cash used in operating activities[64] - Total equity increased to approximately RMB 567.9 million as of June 30, 2021, from RMB 489.2 million as of December 31, 2020, primarily due to Tencent's subscription of shares[58] User Engagement and Game Development - As of June 30, 2021, the company had approximately 228.7 million registered users for its RPG mobile and online games, with 172.8 million for online games and 55.9 million for mobile games[29] - The average Monthly Active Users (MAU) for RPG mobile games was approximately 0.1 million, while online games had an MAU of about 0.2 million as of June 2021[29] - The company plans to launch 2 to 3 mobile games targeting domestic and international markets in the second half of 2021, focusing on established IPs like "Gods and Immortals" and "Carrot Defense"[21] - The company maintained a limited but high-quality game product portfolio, focusing resources on developing sequels for popular titles like "Carrot Defense" and "Gods and Immortals"[25] Operational Efficiency - Sales and distribution expenses decreased by approximately 55.9% from RMB 8.9 million to RMB 3.9 million, mainly due to a reduction in advertising expenses from RMB 6.8 million to RMB 2.0 million[46] - Administrative expenses increased by approximately 8.6% from RMB 19.5 million to RMB 21.1 million, driven by an increase in employee costs from RMB 13.2 million to RMB 14.4 million[47] - Research and development costs rose by approximately 44.0% from RMB 21.8 million to RMB 31.4 million, attributed to the establishment of a development team focused on a first-person shooter game[49] - Other expenses significantly decreased from RMB 10.5 million to RMB 0.2 million, primarily due to the absence of impairment losses related to the investment in GaoWo Technology[51] Investment and Financial Management - The group has adopted a prudent cash and financial management policy, concentrating on managing cash activities to minimize funding costs[64] - The group has a diversified investment portfolio to mitigate risks, with at least 50% of total investments allocated to risk-free or capital-protected investments[69] - The expected annual interest rate for the structured financial product "Tianlibao" is approximately 2.6%, with an actual rate of about 2.8% upon redemption[73] - The group focuses on effective capital and investment management policies to ensure compliance with its investment strategies[69] Stock Options and Employee Compensation - The company has established a stock option plan to incentivize management and employees, aligning their interests with shareholders[151] - The total number of stock options granted under the post-IPO stock option plan as of June 30, 2021, is 146,160,000, which represents approximately 8.50% of the issued shares as of that date[151] - The company has adopted a post-IPO share option scheme and restricted share unit plan as part of its long-term incentive program[137] - The performance-based stock options are designed to motivate employees to achieve specific financial targets, enhancing overall company performance[159]

Financial Performance - Total revenue for 2020 was RMB 117,004,000, an increase from RMB 112,851,000 in 2019, representing a growth of approximately 1.02%[22] - Gross profit for 2020 was RMB 82,419,000, compared to RMB 78,070,000 in 2019, indicating a growth of about 5.99%[22] - The company reported a pre-tax loss of RMB (16,900,000) for 2020, an improvement from a loss of RMB (87,311,000) in 2019[22] - The company reported a net loss attributable to equity holders of the parent of RMB (21,460,000) for 2020, compared to a loss of RMB (80,342,000) in 2019, showing a significant improvement[22] - Total revenue for the year 2020 increased by 3.7% year-on-year to RMB 117.0 million, driven primarily by increased game operation revenue[30] - Net loss for 2020 significantly reduced by 79.6% to RMB 18.1 million compared to RMB 88.7 million in 2019[30] - The company's revenue for the year ended December 31, 2020, was approximately RMB 117.0 million, a 3.7% increase from RMB 112.9 million in 2019[58] - The total loss for the year was approximately RMB 18.1 million, a reduction of about 79.6% compared to RMB 88.7 million in the previous year[74] Assets and Liabilities - Total assets as of December 31, 2020, were RMB 634,063,000, down from RMB 730,730,000 in 2019, reflecting a decrease of approximately 13.24%[24] - Total equity as of December 31, 2020, was RMB 489,166,000, a decrease from RMB 509,735,000 in 2019, representing a decline of about 4.02%[24] - Current assets for 2020 were RMB 203,141,000, down from RMB 243,276,000 in 2019, indicating a decrease of approximately 16.51%[24] - Non-current assets were RMB 430,922,000 in 2020, down from RMB 487,454,000 in 2019, reflecting a decrease of about 11.59%[24] - The total liabilities as of December 31, 2020, were RMB 144,897,000, a decrease from RMB 220,995,000 in 2019, indicating a reduction of approximately 34.43%[24] Game Development and Revenue - The game "Neon Abyss" launched in July 2020 achieved top ten sales on Steam in its first week, while "Kaji Adventure Team" ranked first in the Apple China App Store free download chart[30] - The "Defend the Carrot" game series contributed to a 60.3% year-on-year increase in game operation revenue, reaching RMB 11.3 million[27] - The company reported a total revenue contribution from game operations of approximately RMB 657.57 million, an increase of about 11.0% compared to RMB 592.26 million in 2019[42] - The mobile game "Neon Abyss" launched in July 2020 significantly boosted revenue from PC and console games[42] - The company plans to launch sequels for popular games "Defend the Carrot 4" and "God's Path 3" in 2021, with cumulative registered users of 593.8 million and 159.0 million respectively[36] - The company is focusing on developing two major game types: casual multiplayer online battle arena (MOBA) and first-person shooter (FPS), with a MOBA game expected to launch in 2021[36] Advertising and User Engagement - Advertising revenue grew by 57.3% year-on-year to RMB 16.1 million[27] - The Average Revenue Per Paying User (ARPPU) for online RPG games increased from RMB 142.6 in 2019 to RMB 147.0 in 2020, driven by increased spending from loyal players[51] - Casual games' ARPPU rose significantly from RMB 5.9 in 2019 to RMB 9.9 in 2020, attributed to frequent updates and new features in the "Carrot Defense" series[51] - The company continues to implement various in-game promotions and updates to enhance user engagement and retention[51] Research and Development - The company established a new R&D team in Fuzhou at the end of 2020 to develop new game themes[27] - The company plans to focus on developing high-quality games, particularly in the MOBA and FPS genres, leveraging existing intellectual property[27] - Research and development costs decreased by 19.4% to RMB 56.8 million, reflecting the company's focus on cost management[54] - R&D costs decreased by approximately 19.4% to about RMB 56.8 million, attributed to reduced outsourcing for game development[69] Corporate Strategy and Future Outlook - The company aims to enhance its product offerings and expand its market presence in the upcoming fiscal year[22] - The company has established an overseas game distribution and operation team to expand international business and mitigate the impact of regulatory changes in mainland China[34] - The company aims to strengthen its intellectual property licensing activities with the upcoming launch of "Defend the Carrot 4" and explore collaborations with social media platforms and merchandise producers[37] - The company has maintained a limited but high-quality game product portfolio, focusing resources on developing sequels to existing popular titles[41] - The company is committed to sustainable operations, implementing green office practices and waste management strategies, including the "3R" strategy: Reduce, Reuse, and Recycle[187] Compliance and Corporate Social Responsibility - The company has complied with all relevant laws and regulations impacting its business operations, including those related to online gaming management and copyright[191] - The company is dedicated to corporate social responsibility, participating in community service and supporting educational activities[190] Investment and Financial Management - The company has no recorded significant contingent liabilities or guarantees as of December 31, 2020[172] - The company has not adopted any hedging policies to mitigate interest rate risks, as it does not anticipate significant fluctuations in interest rates[180] - The company plans to allocate a total of approximately $463.2 million for various initiatives, including expanding and improving the game portfolio (40% - $185.3 million), marketing and promotional activities (20% - $92.6 million), and establishing international operations in selected overseas markets (15% - $69.5 million)[185]

Financial Performance - For the six months ended June 30, 2020, the company reported total revenue of approximately RMB 47.1 million, a year-on-year increase of 13.0% from RMB 41.7 million[13]. - Gross profit for the same period was RMB 32.5 million, representing a significant increase of 32.3% compared to RMB 24.6 million in the previous year[13]. - The loss before tax decreased by 38.6% to RMB 21.9 million, down from RMB 35.6 million in the prior year[13]. - The net loss attributable to equity holders of the parent company was approximately RMB 22.4 million, a reduction of 32.9% from RMB 33.4 million year-on-year[13]. - Total revenue for the six months ended June 30, 2020, increased to approximately RMB 47.1 million, a 13.0% increase compared to RMB 41.7 million for the same period in 2019[38]. - The company reported a net loss of RMB 23.3 million for the period, a 38.4% improvement compared to a loss of RMB 37.8 million in the same period of 2019[36]. - The loss for the period decreased by approximately 38.4% from RMB 37.8 million to RMB 23.3 million, with losses attributable to equity holders of the parent decreasing by approximately 32.9%[55]. Assets and Liabilities - The company's total assets as of June 30, 2020, were RMB 694.0 million, a decrease of 5.0% from RMB 730.7 million at the end of 2019[14]. - Non-current assets increased by 8.1% to RMB 527.0 million, compared to RMB 487.5 million at the end of 2019[14]. - Current assets decreased by 31.3% to RMB 167.0 million, down from RMB 243.3 million at the end of 2019[14]. - Total liabilities decreased by 10.4% to RMB 198.1 million, compared to RMB 221.0 million at the end of 2019[14]. - The total equity of the group as of June 30, 2020, was approximately RMB 495.9 million, a decrease of 2.3% from RMB 509.7 million on December 31, 2019, primarily due to a loss of RMB 23.3 million recognized during the six months[59]. - The net current assets as of June 30, 2020, were approximately RMB 31.8 million, representing a significant decrease of 58.8% compared to RMB 77.2 million as of December 31, 2019[59]. - The total cash and cash equivalents amounted to approximately RMB 114.5 million as of June 30, 2020, down 36.1% from RMB 179.2 million on December 31, 2019, mainly due to cash used for investments and operating activities[61]. - The group had bank loans totaling approximately RMB 128.3 million as of June 30, 2020, an increase from RMB 116.7 million on December 31, 2019, with RMB 72.6 million due within one year[62]. Revenue Sources - Game operation revenue for the six months ended June 30, 2020, was approximately RMB 30.5 million, a slight increase from RMB 30.0 million in the same period of 2019, with the percentage of total revenue from game operations decreasing from 72.0% to 64.7%[26][27]. - The average revenue per paying user (ARPPU) for online RPG games increased by 7.0% to RMB 147.8, while casual games saw a 50.0% increase to RMB 8.4[30]. - Online game distribution revenue surged by approximately 182.6% to about RMB 8.5 million, compared to RMB 3.0 million in the previous year, due to the launch of "Soul Instrument Academy" and testing of a new mobile game[39]. - Advertising revenue increased by approximately 69.5% to about RMB 7.8 million, attributed to advertising placements in the "Carrot Defense 3" game[40]. User Engagement - As of June 30, 2020, the company had approximately 227.9 million registered users for RPG mobile and online games, with 172.4 million for online games and 55.5 million for mobile games[30]. - The average monthly active users (MAU) for RPG mobile and online games was approximately 0.3 million, with 0.1 million for mobile games and 0.2 million for online games[30]. - The average Monthly Active Users (MPU) for casual games increased from approximately 89,000 to 130,000, a rise of 46.1%, primarily due to updates in the "Carrot Defense" series[31]. - The company continues to implement various in-game promotions and updates to enhance user engagement and retention[34]. Game Development and Strategy - The company focused on developing and operating high-quality games, which contributed to the stable revenue from game operations despite the pandemic[16]. - The company did not launch any new games during the reporting period but released two new games post-period: "Neon Abyss" and "Kaji Adventure Team" which achieved significant rankings on various platforms[17]. - The company plans to focus on developing multiple games, with four expected to launch in the second half of 2020 and six more in 2021 and beyond[20]. - The company has delayed the launch of some major new games, including "Defend the Carrot 4," to invest more time and resources in development[25]. Cost Management - The cost of sales decreased by approximately 14.7% to RMB 14.5 million, down from RMB 17.1 million, mainly due to reduced leasing costs[42]. - Research and development costs decreased by approximately 38.1% to RMB 21.8 million, down from RMB 35.2 million, reflecting cost management strategies[36]. - Administrative expenses decreased by approximately 29.6% from RMB 27.6 million to RMB 19.5 million, largely due to a reduction in professional fees related to a previous acquisition attempt[47]. - Financing costs decreased by approximately 30.7% from RMB 1.6 million to RMB 1.1 million, mainly due to lower interest rates and partial repayment of loans[49]. Investments and Future Outlook - The company is expanding its intellectual property licensing, with new products launched for Apple Inc. and a global licensing agreement with Meitu application[18][21]. - The company has adopted a prudent cash and financial management policy to effectively control costs and minimize funding costs[62]. - The company is actively seeking new business development opportunities despite not approving any significant investments or acquisitions for the second half of 2020[115]. - The company maintains a positive outlook on the domain service market in China and the future performance of Xiamen Yiming[106]. Shareholder Information - As of June 30, 2020, the total number of shares issued was 1,546,943,455[140]. - The company has granted a total of 146,160,000 share options under the post-IPO share option plan, representing approximately 9.45% of the issued shares as of June 30, 2020[141]. - Yao Jianjun holds 489,884,500 shares, representing 31.67% of the total shares[140]. - The company has established family trusts for its major shareholders, which hold significant stakes in the company[134][136][137][138][139].

Financial Performance - Total revenue for 2019 was RMB 112,851,000, a decrease from RMB 188,133,000 in 2016, representing a decline of approximately 40%[26] - Gross profit for 2019 was RMB 78,070,000, compared to RMB 130,949,000 in 2016, indicating a decrease of about 40%[26] - The company reported a pre-tax loss of RMB 87,311,000 for 2019, an improvement from a loss of RMB 117,192,000 in 2018[26] - The net loss attributable to equity holders of the parent for 2019 was RMB 80,342,000, compared to a loss of RMB 107,508,000 in 2018, indicating a reduction in losses[26] - The company reported a net loss of RMB 88.7 million for the year, a reduction of approximately 25.8% compared to the previous year[69] - Net loss for the year decreased by approximately 25.8% from RMB 119.5 million to RMB 88.7 million, with losses attributable to equity holders of the parent decreasing by approximately 25.3%[92] Assets and Equity - Total assets as of December 31, 2019, were RMB 730,730,000, down from RMB 1,325,790,000 in 2015, reflecting a decline of approximately 45%[27] - Total equity decreased to RMB 509,735,000 in 2019 from RMB 1,070,443,000 in 2015, a reduction of about 52%[27] - Total equity as of December 31, 2019, was approximately RMB 509.7 million, down from RMB 578.0 million, primarily due to the recognized loss for the year[97] Revenue Breakdown - The company's total revenue for the year ended December 31, 2019, increased by 35.6% to RMB 112.9 million, driven by online game distribution, licensing, and advertising revenue growth[34] - The total revenue from game operations was approximately RMB 59.2 million, a decrease of about 14.1% compared to RMB 69.0 million in 2018, primarily due to existing RPG games reaching the end of their life cycles[53] - Online game distribution revenue surged approximately 3,185.6% to about RMB 30.9 million, driven by the launch of several new games[74] - Licensing and intellectual property-related income increased by approximately 53.1% to about RMB 10.5 million, mainly due to a one-time licensing fee from the HTML5 version of "Gods and Demons"[75] - Advertising revenue rose to approximately RMB 11.4 million, an increase of about 85.3%, attributed to a partnership with Toutiao[75] User Engagement and Game Development - The cumulative registered users for mobile RPG and online RPG games reached approximately 55.1 million and 172.1 million, respectively, with casual games achieving around 562.8 million downloads[34] - The average monthly active users (MAU) for mobile RPG, online RPG, and casual games were approximately 33,000, 9,000, and 98,000, respectively, with corresponding average revenue per paying user (ARPPU) of RMB 75.2, RMB 142.6, and RMB 5.9[34] - The average monthly active users (MAU) for RPG mobile games decreased from approximately 51,000 in 2018 to 33,000 in 2019, attributed to the termination of several mobile RPG games[62] - The average revenue per paying user (ARPPU) for online RPG games increased from RMB 121.6 in 2018 to RMB 142.6 in 2019, mainly due to the maturity of the "Xianxia Dao" online version[63] - The company aims to enhance user engagement through various in-game promotions, regular updates for quality games, and excellent customer service[64] Market Strategy and Future Outlook - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[29] - Future outlook includes potential mergers and acquisitions to enhance market presence and technological capabilities[29] - The company aims to seek growth opportunities in overseas markets through patent issuance and third-party game development[32] - The company plans to launch two new games in mid-2020 and a sequel to the "Defense of the Carrot" series, along with expanding licensing activities[32] - The company is actively monitoring the impact of the COVID-19 pandemic on its operations and financial condition, with no significant impact identified as of the report date[46] Operational Risks and Compliance - The company faces several operational risks, including compliance with new gaming industry policies and reliance on third-party distribution platforms[41] - The company ensures compliance with relevant laws and regulations affecting its business operations, including gaming regulations and corporate governance standards[184] Investment and Financial Management - The company has adopted a prudent cash and financial management policy, with cash generally deposited in banks primarily denominated in RMB, HKD, and USD[100] - The company has a diversified investment portfolio, with no less than 50% of total investments allocated to risk-free or capital-protected investments[106] - The company has not engaged in foreign currency hedging transactions but continuously monitors and manages foreign currency risks[100] Employee and Corporate Governance - The employee count is 387, with 60.4% in development, 19.4% in operations, and 0.8% in sales and marketing[171] - The company has implemented various long-term incentive plans for directors and senior management, including stock options and restricted share units[172] - Feiyu's environmental, social, and governance (ESG) strategies are overseen by the board, ensuring effective risk management measures are in place[198] Awards and Recognition - The company has received multiple awards, including the Golden Joystick Award for the most anticipated mobile online game for "Tianxia Chang'an" and the Tencent Game Creative Competition Gold Award for "Kaji Adventure Team" in 2019[193] - Feiyu has filed for 12 new software copyrights and obtained 5 new patents, indicating a strong focus on research and development[193]

Financial Performance - For the six months ended June 30, 2019, the total revenue was approximately RMB 41.7 million, a decrease of 9.0% year-on-year[30]. - The net loss attributable to the owners of the parent company was approximately RMB 33.4 million, an improvement of 10.7% compared to RMB 37.4 million in the same period last year[30]. - The adjusted net loss attributable to the owners of the parent company was approximately RMB 32.3 million, compared to RMB 33.2 million in the previous year[30]. - The gross profit for the period was RMB 24.6 million, representing a significant increase of 33.9% from RMB 18.4 million in the previous year[24]. - Revenue for the six months ended June 30, 2019, was approximately RMB 41.7 million, a decrease of 9.0% compared to RMB 45.8 million for the same period in 2018[54]. - The company reported a net loss of RMB 37.8 million for the six months ended June 30, 2019, compared to a net loss of RMB 42.7 million in the same period of 2018, reflecting an improvement of 11.4%[54]. Assets and Equity - The total assets as of June 30, 2019, amounted to RMB 721.1 million, a decrease of 7.2% from RMB 776.6 million as of December 31, 2018[25]. - The total equity was RMB 552.9 million, down 4.3% from RMB 578.0 million at the end of the previous year[25]. - Total equity as of June 30, 2019, was approximately RMB 553.0 million, down from RMB 578.0 million as of December 31, 2018, mainly due to a loss of RMB 37.8 million recognized during the period[76]. Liabilities - Non-current liabilities increased by 83.8% to RMB 40.4 million, compared to RMB 22.0 million in the previous year[25]. - The group had total bank loans of approximately RMB 91.3 million as of June 30, 2019, slightly down from RMB 93.0 million as of December 31, 2018[80]. - The group recorded a net current asset value of approximately RMB 102.8 million, a decrease of 4.6% from RMB 107.7 million as of December 31, 2018[76]. Revenue Streams - Revenue from game operations decreased from 86.4% to 72.0% of total revenue, primarily due to a decline in mobile game contributions[42]. - Online game distribution revenue increased from approximately 1.2% to 7.2% of total revenue, attributed to new game launches by the Shenzhen distribution team[42]. - Advertising revenue rose from about 4.8% to 11.0% of total revenue, driven by a partnership with "Today's Headlines" that boosted advertising income for the "Defend the Carrot" series[42]. User Engagement - As of June 30, 2019, the total registered users for RPG mobile and online games reached approximately 226.5 million, with online games accounting for about 171.9 million and mobile games for about 54.6 million[46]. - The average Monthly Active Users (MAU) for RPG mobile games was approximately 340,000, while for online games it was about 200,000, reflecting a decrease in user engagement[49]. - The average Monthly Paying Users (MPU) for online games decreased from 11,000 to 9,000, indicating a shift in focus from online to mobile games since 2013[49]. Game Development and Launches - The company launched four new games in the first half of 2019, including "Tianxia Chang'an" and "Kung Fu Big Soybean," targeting various user demographics[32]. - The company decided to extend the development time for several new games to enhance quality, leading to delays in their launch[30]. - The company plans to continue focusing on high-quality game development and user engagement, leveraging its established intellectual property[36]. Marketing and Promotions - The company plans to use approximately RMB 14.4 million for marketing and promotion of a new game launched in Q3 2019[154]. - The company plans to continue launching various in-game promotions and updates to enhance user engagement and retention[52]. Shareholder Information - The largest shareholder, YAO Holdings Limited, holds 481,399,000 shares, which is approximately 31.1% of the total shares[158]. - The second-largest shareholder, Chen Jianyu, holds 256,739,000 shares, accounting for 16.60% of the total shares[157]. - The company has a total of 8,485,500 shares directly held by Mr. Yao, which is approximately 0.55% of the total shares[158]. Share Options and Plans - The company granted a total of 105,570,000 share options under the pre-IPO share option plan, representing approximately 6.82% of the issued shares as of June 30, 2019[166]. - The company has a share option plan that is subject to the regulations of Chapter 17 of the Listing Rules[175]. - The total number of options exercised as of June 30, 2019, was 30,920,000, with a remaining balance of 28,595,000 options[170]. Future Outlook - The company is optimistic about the trademark services market in China and Easy Play's future performance[123]. - The group believes Future Capital is well-capitalized and managed by an experienced team, with optimistic future business prospects[134]. - The group holds a positive outlook on Standard Chartered's future performance, citing stability and progress in several areas[106].

Financial Performance - Total revenue for 2018 was RMB 83,250,000, a decrease of 36.7% compared to RMB 131,697,000 in 2017[11] - Gross profit for 2018 was RMB 23,771,000, down 74.4% from RMB 92,854,000 in the previous year[11] - The company reported a net loss attributable to shareholders of RMB 107,508,000 for 2018, compared to a loss of RMB 377,455,000 in 2017[11] - Total revenue for the year ended December 31, 2018, decreased by 36.8% to approximately RMB 833 million[21] - Net loss attributable to equity holders of the parent was approximately RMB 1,075 million, a decrease of 71.5% compared to RMB 3,775 million for the year ended December 31, 2017[21] - The company reported a net loss of RMB 119.5 million for the year ended December 31, 2018, compared to a net loss of RMB 388.8 million in 2017, indicating a 69.3% improvement[54] Assets and Liabilities - Total assets as of December 31, 2018, were RMB 776,612,000, a slight increase from RMB 762,249,000 in 2017[13] - Total equity decreased to RMB 577,974,000 in 2018 from RMB 635,688,000 in 2017, reflecting a decline of 9.0%[13] - Current liabilities increased to RMB 176,652,000 in 2018 from RMB 121,621,000 in 2017, representing a rise of 45.3%[13] - Non-current assets were RMB 492,279,000 in 2018, down from RMB 533,277,000 in 2017, indicating a decrease of 7.5%[13] - Cash and cash equivalents decreased to approximately RMB 104.9 million as of December 31, 2018, from RMB 155.4 million as of December 31, 2017, mainly due to investments in joint ventures and the construction of R&D centers[83] - The group had total bank loans of approximately RMB 93.0 million as of December 31, 2018, compared to RMB 53.5 million as of December 31, 2017, with approximately RMB 83.7 million due within one year[84] Game Development and Strategy - The company plans to focus on new product development and market expansion strategies in the upcoming year[15] - The company launched five new games during the year, including the mobile version of "Hero is Me" and "Magic Tower," which ranked second in the paid download chart on the Apple China App Store[22][23] - The company plans to continue developing high-quality games leveraging its well-known intellectual properties, including "Carrot Defense" and "Three Kingdoms Blade"[17] - The company plans to launch multiple new games in 2019, including sequels to popular titles and collaborations with other developers to introduce attractive games[36] - The company continues to implement various in-game promotions and updates to enhance user engagement and retention[49] - The company’s strategy includes a focus on mobile games, shifting from online games, which has impacted user metrics and revenue streams[48] User Metrics and Engagement - As of December 31, 2018, the total registered users for RPG mobile and online games reached approximately 225.1 million, with online games accounting for about 171.3 million and mobile games for about 53.8 million[43] - The average Monthly Active Users (MAU) for RPG mobile and online games was approximately 0.5 million, with mobile games at about 0.2 million MAU and online games at about 0.3 million MAU as of December 2018[43] - The average Paying Users (MPU) for online RPG games decreased from 15,000 in 2017 to 10,000 in 2018, while mobile RPG games saw a decline from 67,000 to 51,000[48] Revenue Sources and Trends - Game operation revenue as a percentage of total revenue decreased from approximately 85.7% in 2017 to about 82.8% in 2018, indicating a shift in revenue sources[39] - The contribution of RPG mobile games to total revenue fell from approximately 65.6% in 2017 to about 54.2% in 2018, primarily due to existing RPG games entering the late stage of their lifecycle[39] - Licensing and intellectual property-related income was approximately RMB 6.9 million, a decrease of about 29.0% compared to the previous year, mainly due to the absence of one-time licensing fees from the Southeast Asia version of "Three Kingdoms Blade"[60] - Advertising revenue slightly increased from approximately RMB 6.0 million to approximately RMB 6.2 million, primarily due to advertising income from the mini-game "Defend the Carrot - Quick Play Version" launched on WeChat[63] Operational Efficiency and Cost Management - The management highlighted the importance of improving operational efficiency to enhance profitability moving forward[15] - Cost of sales increased by approximately 53.1% to about RMB 59.5 million, mainly due to costs associated with the operation of the Meitu game distribution platform[64] - Selling and distribution expenses decreased by approximately 73.5% to about RMB 10.6 million, primarily due to reduced advertising expenses from approximately RMB 26.8 million to about RMB 5.1 million[69] - Administrative expenses decreased by approximately 6.4% to about RMB 60.2 million, mainly due to a reduction in costs related to stock options granted in November 2014[70] - Research and development costs remained stable at approximately RMB 93.6 million, compared to RMB 93.7 million in the previous year[71] Investments and Financing - The company invested RMB 20 million in Gao Wo Technology Limited, acquiring a 20% stake in the company[26] - The company secured a loan financing of up to RMB 120 million from the Industrial and Commercial Bank of China for the construction of a research and development center[27] - The company sold its entire 4.34% stake in Tap Tap for a total cash consideration of RMB 108,500,000, enhancing liquidity and core business development[28] - The company terminated its exclusive licensing agreement with Meituan, reflecting a strategic shift in response to market conditions[29] Compliance and Regulatory Engagement - The company is actively engaging with regulatory bodies to ensure compliance with new policies affecting the gaming industry[33] - The company is committed to complying with all relevant laws and regulations affecting its business operations, including gaming regulations in China[182] Sustainability and Corporate Responsibility - The company has identified 25 key sustainability issues critical to its business operations, including diversity and anti-discrimination, greenhouse gas emissions, and employee welfare[200] - Stakeholder engagement surveys were conducted this year to gather feedback on environmental, social, and governance initiatives, indicating a commitment to continuous improvement[200] - The company values stakeholder feedback as essential for enhancing business and sustainability strategies[199] - The company has established a strategy for waste management based on the "3R" principle: Reduce, Reuse, and Recycle[180] - The company plans to continue optimizing its environmental policies and practices to contribute positively to the community and environment[181]