翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) FF305 表格類別： 股票 狀態： 重新提交 公司名稱： 创梦天地科技控股有限公司 呈交日期： 2025年1月6日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01119 | 說明 | 每股面值美元0.0001元之普通股 | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | 庫存股份變動 | | | | | 事件 | 已發行股份（不包括庫存股份）數 目 | 佔 ...

表格類別： 股票 狀態： 新提交 FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 公司名稱： 创梦天地科技控股有限公司 呈交日期： 2025年1月6日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01119 | 說明 | 每股面值美元0.0001元之普通股 | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | 庫存股份變動 | | | | | 事件 | 已發行股份（不包括庫存股份）數 目 | 佔有 ...

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之內容概不負責，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之任何損失承擔任何責任。 作為中國領先的數字娛樂平台，本集團主要從事自研及運營精品遊戲，以及由 本公司自主研發的用戶社區管理平台Fanbook，並一直致力於通過科技和創意 為用戶帶來快樂。董事認為，諒解備忘錄乃於本集團日常業務中訂立，其條款 公平合理，為一般商業條款或更佳條款，符合本公司及其股東的整體利益。 承董事會命 iDreamSky Technology Holdings Limited ࡋỖཙൠ、ᢰ᧗㛑ᴹ䲀ޜਨ （於開曼群島註冊成立的有限公司） （股份代號：1119） 自願公告 與stc play在技術及遊戲領域達成合作 本公告乃由創夢天地科技控股有限公司（「本公司」，連同其附屬公司及中國綜 合聯屬主體，統稱為「本集團」）自願刊發，旨在知會本公司股東及有意投資者 有關本集團之最新業務發展。 本公司董事（「董事」）會（「董事會」）謹此宣佈，本公司之中國綜合聯屬主體深 圳市創夢天地科技有限公司已於近日與stc play達成合 ...

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之內容概不負責，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之任何損失承擔任何責任。 騰訊雲是騰訊控股有限公司旗下的產品，為開發者及企業提供雲服務、雲數據、 雲運營等服務方案。本集團近年來也致力於將AI技術應用於本集團遊戲中以增 強遊戲角色互動性，更將AI融入到遊戲研發的各個環節，實現更高效智能的遊 戲製作流程。雙方將在以下幾個方面達成合作： iDreamSky Technology Holdings Limited ࡋỖཙൠ、ᢰ᧗㛑ᴹ䲀ޜਨ （於開曼群島註冊成立的有限公司） （股份代號：1119） 自願公告 與騰訊雲在遊戲AI領域達成戰略合作，成立聯合創新實驗室 本公告乃由創夢天地科技控股有限公司（「本公司」，連同其附屬公司及中國綜 合聯屬主體統稱為「本集團」）自願刊發，旨在知會本公司股東及有意投資者有 關本集團之最新業務發展。 本公司董事（「董事」）會（「董事會」）謹此公佈，本公司之中國綜合聯屬主體深 圳市創夢天地科技有限公司已於近日與騰訊雲計算（北京）有限責任公司（「騰 訊雲」）訂 ...

Summary of Conference Call Company Overview - The company, referred to as "创梦" (Chuangmeng), is a global gaming company with integrated capabilities in game publishing and development, focusing on high-quality business growth and stability in operations [1][2]. Key Business Segments Game Publishing - The company has a mature game publishing business, with long-lifecycle products such as "Subway Surfers" and "Dream Garden" contributing to revenue [2]. - New releases like "Mecha Squad" and "Legendary Store" have also performed well, indicating a focus on unique and niche products [2][3]. - The company emphasizes user engagement through content iteration and optimizing user lifetime value (LTV), achieving a 40% increase in payment rates through enhanced content and competitive gaming features [2]. Self-Developed Games - "卡拉比丘" (Karabichu) is highlighted as a key self-developed product, launched globally with significant user engagement and positive feedback [5][6]. - The game has achieved top rankings on platforms like Steam and is expected to contribute positively to the company's revenue in 2025 [5][6][11]. - The company plans to expand the game to mobile and console platforms, enhancing its global operational capabilities [6]. AI Technology Integration - The company is actively integrating AI into its operations, including community management and game development processes [7][8]. - AI tools have improved operational efficiency by over 30%, enhancing game development and user engagement [8][41]. - The establishment of a joint innovation lab with Tencent Cloud focuses on leveraging AI to enhance game development processes [40][41]. Financial Performance - Total revenue for 2024 is reported at 1.51 billion RMB, showing a decline due to the cessation of non-core game operations and the transition of self-developed games to a net revenue recognition model [10][11]. - Despite the overall revenue decline, core games continue to perform well, with a 10% increase in publishing revenue [11]. - The adjusted loss for 2024 is 30 million RMB, primarily due to ongoing R&D investments in "卡拉比丘" [12]. Marketing and Cost Management - Marketing expenses decreased by 15% to 196 million RMB, attributed to improved customer acquisition efficiency and community engagement [13]. - R&D expenses also saw a reduction, with a focus on capitalizing certain development costs [13][14]. Future Outlook - The company aims to enhance its game portfolio with a focus on long-term operational stability and profitability [17]. - Plans to optimize the game publishing model to improve cash flow and reduce risks associated with upfront payments [18]. - The company is committed to improving stock liquidity and investor structure following its exit from the Hong Kong Stock Connect [31]. Strategic Focus - The company aims to solidify its position as an IP-driven entity, focusing on high-quality game content and sustainable profitability [44][46]. - Future game development will prioritize high-barrier genres, leveraging AI technology to enhance gameplay and user experience [46][47]. Additional Insights - The company is adapting its game design based on user feedback, particularly for "卡拉比丘," to include more casual gameplay options and improve user experience [24][25][26]. - The integration of AI in gameplay is expected to enhance player engagement and retention, with plans for more intelligent NPC interactions [42][43]. This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, financial performance, and future initiatives.

Financial Performance - Revenue for the first half of 2024 was RMB 845,223 thousand, a decrease of 23.8% compared to RMB 1,109,811 thousand in the same period of 2023[5]. - Gross profit for the first half of 2024 was RMB 291,786 thousand, down 42% from RMB 502,066 thousand in the first half of 2023[5]. - The adjusted profit for the period was RMB 3,297 thousand, a significant decline from RMB 199,150 thousand in the same period of 2023[5]. - For the six months ended June 30, 2024, the company reported a loss of RMB 109.3 million compared to a profit of RMB 40.6 million for the same period in 2023[25]. - Adjusted profit for the period was RMB 3.3 million, a significant decrease from RMB 199.15 million in the prior year, representing a decline of approximately 98.3%[26]. - EBITDA for the six months ended June 30, 2024, was RMB 11.72 million, down from RMB 150.55 million in the same period of 2023, indicating a decline of about 92.2%[26]. - The company incurred a net loss from continuing operations of RMB 109,279,000, compared to a profit of RMB 52,576,000 in the prior year[66]. - The net loss attributable to equity holders for the period was RMB 109,817,000, compared to a profit of RMB 40,712,000 in the same period last year[66]. - The total comprehensive loss for the period amounted to RMB 104,238,000, compared to a comprehensive income of RMB 59,662,000 in the prior year[66]. Revenue Breakdown - Game revenue contributed 97.3% of total revenue, amounting to RMB 822.2 million, down 22.8% year-on-year from RMB 1,065.1 million[17]. - Revenue from Tencent Group for services provided decreased to RMB 25.87 million in the first half of 2024 from RMB 57.31 million in the same period of 2023[152]. - Game revenue and information service revenue amounted to RMB 822,238 thousand and RMB 17,618 thousand respectively, down from RMB 1,065,088 thousand and RMB 40,516 thousand in 2023, representing a decline of 22.8% and 56.5%[92]. Expenses and Costs - Cost of revenue decreased by 8.9% to RMB 553.4 million, but as a percentage of revenue, it increased from 54.8% to 65.5%[19]. - Sales and marketing expenses decreased by 23.4% to RMB 77.8 million, representing 9.2% of revenue, slightly up from 9.1%[20]. - General and administrative expenses increased by 20.0% to RMB 50.4 million, rising from 3.8% to 6.0% of revenue[21]. - R&D expenses rose by 8.7% to RMB 153.3 million, accounting for 18.1% of revenue, up from 12.7%[22]. - The cost of revenue, sales and marketing expenses, general and administrative expenses, R&D expenses, and impairment losses on intangible assets totaled RMB 834,870 thousand, a decrease of 6.5% from RMB 893,279 thousand in the previous year[95]. Cash Flow and Liquidity - The company's cash and cash equivalents increased by 42.9% to approximately RMB 272.2 million as of June 30, 2024, compared to RMB 190.4 million at the end of 2023[30]. - Operating cash flow for the six months ended June 30, 2024, was RMB 33,864 thousand, a decrease of 86.2% compared to RMB 245,540 thousand for the same period in 2023[70]. - Financing activities generated a net cash inflow of RMB 135,184 thousand, a significant improvement from a net outflow of RMB (81,351) thousand in the previous year[70]. - The total cash and cash equivalents at the end of the period reached RMB 272,178 thousand, up 43.1% from RMB 190,211 thousand at the end of the same period last year[70]. Assets and Liabilities - Total assets increased to RMB 3,791,526 thousand as of June 30, 2024, up from RMB 3,707,673 thousand at the end of 2023, representing a growth of approximately 2.26%[68]. - Total liabilities increased to RMB 2,153,989 thousand, up from RMB 1,964,446 thousand, reflecting a growth of about 9.63%[68]. - The company's equity attributable to owners decreased to RMB 1,539,509 thousand from RMB 1,645,737 thousand, a decline of approximately 6.43%[69]. - The company's borrowings increased to RMB 1,240,710 thousand from RMB 966,424 thousand, reflecting a rise of about 28.3%[68]. Game Development and User Engagement - The user base for the "Dream Series" games has grown steadily, with "Dream Garden" revenue increasing by 14% year-on-year[6]. - "Subway Surfers" has maintained its popularity for 11 years, launching 8 new versions in 2024 and achieving over 200 million total exposures across platforms[6]. - The "Mecha Squad" game, launched in January 2024, ranked TOP 6 in the shooting category on mainstream Android channels within six months[7]. - The Fanbook community's user base increased by over 30% compared to the end of 2023, with high-quality creators growing sixfold[6]. - AI technology is being utilized to enhance production and operational efficiency, improving user service quality[6]. Shareholder and Corporate Governance - The company has adopted the corporate governance code as per the listing rules to ensure accountability and protect shareholder interests[39]. - The company did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[41]. - The company repurchased a total of 3,444,800 shares at a total cost of HKD 5,963,668 during the six months ended June 30, 2024[43]. - The company has adopted a ten-year share incentive plan on May 18, 2023, allowing for a total of 28,207,966 shares to be granted, representing 2% of the issued share capital as of the adoption date[54]. Future Outlook and Strategic Initiatives - The company is focusing on long-term operations of classic games and continuous introduction of high-quality overseas games to support cash flow[6]. - The company aims to enhance core competitiveness and expand the global reach of "Kara Bichu," targeting young competitive gamers while exploring new market opportunities[13]. - The company plans to use the proceeds from the placement of 119,850,400 shares at HKD 2.15 per share for key product R&D and overseas expansion, as well as general working capital[64]. - Future outlook includes potential market expansion and new product development initiatives[166].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 845 million yuan in H1 2024, a year-on-year decrease of 24.62%, and a net profit attributable to shareholders of -110 million yuan, compared to 41 million yuan in the same period last year [3] - The focus on long-term games has put pressure on performance, but cost control continues to improve [3] - Long lifecycle products are solidifying the company's fundamentals, with expectations for new game releases to drive performance [4] - The earnings forecast has been adjusted downward for 2024-2026, with EPS estimates of -0.02, 0.28, and 0.33 yuan respectively, corresponding to a PE of 7 and 6 times for 2025 and 2026 [4] Revenue and Profitability - Total revenue for 2022 was 2,734 million yuan, which decreased to 1,917 million yuan in 2023, with an expected slight decline to 1,893 million yuan in 2024 before a significant increase to 4,226 million yuan in 2025 [2] - The net profit attributable to shareholders is projected to improve from -2,492.29 million yuan in 2022 to -41.24 million yuan in 2024, and then to 464.92 million yuan in 2025 [2] Financial Metrics - The company’s operating cash flow is expected to increase from 252.96 million yuan in 2023 to 630.44 million yuan in 2024 [9] - The gross margin is projected to improve from 35.14% in 2023 to 40.59% in 2024, indicating better cost management [10] - The asset-liability ratio is expected to decrease from 52.98% in 2023 to 51.01% in 2024, reflecting improved financial stability [10]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 845,223 thousand, a decrease of 23.8% compared to RMB 1,109,811 thousand in the same period of 2023[2] - Gross profit for the same period was RMB 291,786 thousand, down 42% from RMB 502,066 thousand year-on-year[2] - The adjusted profit for the period was RMB 3,297 thousand, a significant decline from RMB 199,150 thousand in the previous year[2] - Game revenue contributed 97.3% of total revenue, amounting to RMB 822.2 million, down from RMB 1,065.1 million, reflecting a year-on-year decline of 22.8%[11] - Information services revenue fell to RMB 17.6 million, a decrease from RMB 40.5 million, primarily due to a strategic reduction in in-app advertising[12] - The company recorded a loss of RMB 109.3 million for the six months ended June 30, 2024, compared to a profit of RMB 40.6 million for the same period in 2023[18] - EBITDA for the six months ended June 30, 2024, was RMB 11.7 million, significantly lower than RMB 150.6 million for the same period in 2023[19] - Adjusted EBITDA decreased to RMB 100.1 million for the six months ended June 30, 2024, from RMB 268.4 million for the same period in 2023[23] - The company reported a net loss attributable to equity holders of RMB (109,817) thousand for the six months ended June 30, 2024, compared to a profit of RMB 52,698 thousand in the same period of 2023[55] User Growth and Game Performance - The user base for the "Dream Series" games grew steadily, with "Dream Garden" revenue increasing by 14% year-on-year, and total registered users in China exceeding 200 million[3] - "Subway Surfers" maintained its popularity after 11 years, launching 8 new versions in 2024 and achieving over 200 million total exposure across platforms[3] - "Mecha Squad" ranked TOP 6 in the shooting category on mainstream Android channels and received over 20 premium recommendations on iOS since its launch in January 2024[4] - "Kara Bichu," a multi-platform anime competitive shooting game, is set for global release in Q4 2024, with positive feedback from closed beta testing[5] - "Honor of All Stars" continues to generate revenue after three years, consistently ranking among the top in the action RPG mobile game category[5] - The cross-platform tactical shooting game "Delta Action," co-developed with Tencent, has surpassed 30 million pre-registrations ahead of its September 2024 launch[5] - The user base for the Dream series community expanded significantly, with revenue from Fanbook increasing by over 60% compared to the second half of 2023[6] Expenses and Cost Management - Cost of revenue decreased by 8.9% to RMB 553.4 million, but as a percentage of revenue, it increased from 54.8% to 65.5%[13] - Sales and marketing expenses decreased by 23.4% to RMB 77.8 million, maintaining a stable percentage of revenue at 9.2%[14] - General and administrative expenses rose by 20.0% to RMB 50.4 million, increasing as a percentage of revenue from 3.8% to 6.0%[15] - Research and development expenses increased by 8.7% to RMB 153.3 million, representing 18.1% of revenue, up from 12.7%[16] - Total expenses, including cost of revenue, selling and marketing expenses, general and administrative expenses, R&D expenses, and impairment losses on intangible assets, amounted to RMB 834,870 thousand, compared to RMB 893,279 thousand in the previous year[49] Financial Position and Liquidity - Cash and cash equivalents increased by 42.9% to approximately RMB 272.2 million as of June 30, 2024, from approximately RMB 190.4 million as of December 31, 2023[24] - Total borrowings amounted to approximately RMB 1,240.7 million as of June 30, 2024, compared to RMB 966.4 million as of December 31, 2023[25] - The current ratio as of June 30, 2024, was 0.99, down from 1.07 on December 31, 2023, indicating a decrease in liquidity[26] - The debt ratio increased to 56.8% as of June 30, 2024, compared to 53.0% on December 31, 2023, reflecting a higher proportion of debt in the company's capital structure[26] - Current liabilities increased to RMB 1,776,439 thousand as of June 30, 2024, compared to RMB 1,594,084 thousand as of December 31, 2023[39] Strategic Initiatives and Future Outlook - The company is focusing on high-quality games, with the self-developed game "Honor of Kings" maintaining stable revenue growth despite overall revenue decline[11] - Future outlook includes plans for new product launches and technological advancements to enhance user engagement[83] - The company aims to strengthen its market presence through strategic acquisitions and partnerships[83] - Revenue growth is projected at a rate of 15% year-over-year, driven by increased user activity and new offerings[83] - Investment in research and development is expected to increase by 25% to support innovation[83] - The company plans to enhance its operational efficiency, targeting a reduction in costs by 10% over the next fiscal year[83] - The board has approved a new strategy focusing on digital transformation and market expansion initiatives[84] Compliance and Reporting - The company is committed to maintaining compliance with international financial reporting standards to ensure transparency[84] - The company has adopted new and revised standards effective from January 1, 2024, which are not expected to have a significant impact on the interim financial information[42]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 1.916 billion yuan in 2023, a year-on-year decrease of 29.91%, but managed to narrow its net loss significantly to 453.38 million yuan, compared to a loss of 2.492 billion yuan in 2022, and reported an adjusted profit of 140 million yuan [2][3] - The revenue decline is attributed to the company's focus on high-quality games, leading to the discontinuation of non-core games, which resulted in a 26.95% year-on-year decrease in gaming operations revenue to 1.849 billion yuan [2] - The company has successfully reduced costs and improved efficiency, with a gross margin increase of 19.74 percentage points to 35.14% in 2023, driven by a focus on premium game operations and enhanced self-channel operations [2] - The company is optimistic about the long-term operation of existing games and the potential performance of new games, with the self-developed game "Kara Bichu" showing strong early engagement metrics [2][3] Summary by Sections Financial Performance - Total revenue for 2023 was 1.916 billion yuan, down 29.91% year-on-year, while adjusted profit turned positive at 140 million yuan [2] - The company expects revenue to rebound to 2.335 billion yuan in 2024, with a projected growth of 21.84% [3] - The net profit forecast for 2024 is 230.93 million yuan, with further increases expected in subsequent years [3] Earnings Forecast and Valuation - The EPS forecast for 2024, 2025, and 2026 is adjusted to 0.15, 0.32, and 0.38 yuan respectively, with corresponding P/E ratios of 18, 8, and 7 [3] - The report highlights the potential for earnings elasticity to be gradually realized as the new game cycle commences [3] Market Data - The closing price of the stock is 2.93 HKD, with a market capitalization of approximately 4.613 billion HKD [4] - The stock has a price-to-book ratio of 2.80 [4] Basic Data - The company has a net asset value per share of 1.05 yuan and a debt-to-asset ratio of 52.98% [5]

Financial Performance - Revenue for 2023 decreased to RMB 1,916,473 thousand, a decline of 26.1% compared to RMB 2,594,528 thousand in 2022[6] - Gross profit for 2023 was RMB 673,461 thousand, a significant increase from RMB 400,460 thousand in 2022, reflecting a 68.2% growth[6] - The company reported a net loss of RMB 456,830 thousand in 2023, an improvement from the net loss of RMB 2,521,578 thousand in 2022[6] - Adjusted net profit for 2023 was RMB 139,597 thousand, compared to an adjusted net loss of RMB 576,152 thousand in 2022[6] - Total assets decreased to RMB 3,707,673 thousand in 2023 from RMB 4,323,718 thousand in 2022, a decline of 14.2%[7] - Total liabilities reduced to RMB 1,964,446 thousand in 2023 from RMB 2,529,176 thousand in 2022, a decrease of 22.3%[7] - Total equity slightly decreased to RMB 1,743,227 thousand in 2023 from RMB 1,794,542 thousand in 2022[7] - Revenue for 2023 decreased by 26.1% to RMB 1,916.5 million compared to RMB 2,594.5 million in 2022[20] - Game revenue accounted for 96.5% of total revenue in 2023, down from 97.6% in 2022[21] - The company reported a net loss of RMB 560.8 million for 2023, compared to a net loss of RMB 2,589.9 million in 2022[19] - Adjusted net profit for 2023 was RMB 139.6 million, a significant improvement from the adjusted net loss of RMB 576.2 million in 2022[19] - Game revenue decreased by 27.0% from RMB 2,531.3 million in 2022 to RMB 1,849.1 million in 2023, contributing 96.5% and 97.6% of total revenue respectively[22] - Information service revenue increased from RMB 49.0 million in 2022 to RMB 61.8 million in 2023, driven by increased ad placements and higher fees charged to advertisers[23] - Revenue cost decreased by 43.3% from RMB 2,194.1 million in 2022 to RMB 1,243.0 million in 2023, with the cost-to-revenue ratio dropping from 84.6% to 64.9%[24] - Sales and marketing expenses decreased by 78.5% from RMB 1,074.8 million in 2022 to RMB 230.6 million in 2023, with the expense-to-revenue ratio dropping from 41.4% to 12.0%[25] - R&D expenses decreased from RMB 316.0 million in 2022 to RMB 240.0 million in 2023, with the expense-to-revenue ratio increasing from 12.2% to 12.5%[25] - Impairment loss on intangible assets decreased significantly from RMB 752.3 million in 2022 to RMB 23.2 million in 2023[25] - Net impairment loss on financial assets decreased from RMB 359.8 million in 2022 to RMB 232.3 million in 2023[26] - Fair value loss on financial assets measured at fair value through profit or loss decreased from RMB 83.2 million in 2022 to RMB 27.9 million in 2023[27] - Net finance costs increased from RMB 172.5 million in 2022 to RMB 289.8 million in 2023, mainly due to interest expenses and amortization cost adjustments related to convertible bonds[28] - Adjusted annual profit for 2023 was RMB 139.6 million, compared to an adjusted annual loss of RMB 576.2 million in 2022[30] - Adjusted EBITDA for 2023 was RMB 308.8 million, a significant improvement from a loss of RMB 277.5 million in 2022[36] - Cash and cash equivalents increased by 110.4% to RMB 190.4 million as of December 31, 2023, compared to RMB 90.5 million in 2022[37] - Total borrowings decreased to RMB 966.4 million in 2023 from RMB 1,011.2 million in 2022[37] - The company's debt ratio improved to 53.0% in 2023 from 58.5% in 2022[39] - Capital expenditure for 2023 was RMB 129.9 million, down from RMB 221.9 million in 2022[41] - The company's current ratio improved to 1.07 in 2023 from 0.87 in 2022[39] - Adjusted annual profit for 2023 was RMB 139.6 million, compared to a loss of RMB 576.2 million in 2022[35] - 62.2% of the company's total borrowings were secured by trade receivables, game intellectual property, and deposits as of December 31, 2023[40] - The company's capital-to-debt ratio improved to 57.3% in 2023 from 80.5% in 2022[39] - The company divested its IP derivative business in March 2023, with no other significant acquisitions or disposals during the year[42] - The company did not hedge any foreign exchange fluctuations for the years ended December 31, 2023, and December 31, 2022[43] - The company repurchased and canceled HKD 758 million of the 2025 convertible bonds, representing 97.8% of the total principal amount, leaving an outstanding principal of HKD 17 million[45] - The company issued HKD 386 million of 2028 convertible bonds with an initial conversion price of HKD 3.64 per share, which could convert into a maximum of 106,043,956 ordinary shares[45] - The company completed the placement of 164,177,200 ordinary shares at a price of HKD 3.10 per share, with a net price of HKD 3.02 per share[46] - The net proceeds from the placement and issuance of the 2028 convertible bonds amounted to approximately HKD 873 million, equivalent to RMB 797.88 million[47] - The company used RMB 684.89 million of the proceeds to repurchase the 2025 convertible bonds and RMB 112.99 million for general working capital[48] - The remaining principal amount of HKD 17 million of the 2025 convertible bonds was redeemed and canceled on October 16, 2023[48] - The company's stock closed at HKD 3.38 per share on the Hong Kong Stock Exchange on July 10, 2023[48] - Revenue from the top five customers accounted for 7.2% of the company's total revenue in 2023, with the largest customer contributing 5.4%[56] - The top five suppliers accounted for 67.7% of the company's total purchases in 2023, with the largest single supplier contributing 27.6%[57] - The company employed 797 employees as of December 31, 2023, a decrease from 1,048 in 2022, with total salary expenses (excluding share-based compensation) decreasing by 37.7% to RMB 225.9 million[58] - The company did not recommend paying a final dividend for the year ended December 31, 2023[55] - The company's total salary expenses (excluding share-based compensation) for the year ended December 31, 2023, were RMB 225.9 million, a 37.7% decrease compared to 2022[58] - The company's largest customer in 2023 was Tencent, which also became a major shareholder[56] - The company's total purchases from the top five suppliers increased significantly from 28.8% in 2022 to 67.7% in 2023[57] - The company's total salary expenses (excluding share-based compensation) decreased by 37.7% to RMB 225.9 million in 2023 compared to 2022[58] - The company did not have any distributable reserves as of December 31, 2023[60] - The company's total salary expenses (excluding share-based compensation) for the year ended December 31, 2023, were RMB 225.9 million, a 37.7% decrease compared to 2022[58] Game Performance and Development - Revenue from "Dream Garden" and "Dream Home" games surged by over 50% year-over-year in 2023, reaching a historical high since their launch[10] - "Subway Surfers" maintained its popularity in China, ranking high on the iOS free game charts and releasing 12 new versions in 2023[10] - The domestic version of "Mech Arena" debuted in January 2024, ranking 7th in the shooting category during the Spring Festival and receiving a 4.7 rating on the App Store[10] - "Kalpa of Universe" achieved a 60% increase in daily active users, 130% growth in new users, and a 10% improvement in player retention during its public beta[11] - "Kalpa of Universe" players spent an average of over 120 minutes daily, with a 20% participation rate in the new casual gameplay mode[11] - "Honor of All-Star" remained the top-ranked horizontal action RPG mobile game, releasing 7 major updates in 2023[11] - The company's long-term operational games, such as "Subway Surfers," "Dream Garden," and "Dream Home," demonstrated steady growth and strong user engagement[9] - The company transitioned from game publishing to self-development, with "Kalpa of Universe" being the first global 2D competitive shooting game[8] - The company's self-developed games, including "Kalpa of Universe," have established a multi-platform global shooting technology pipeline and 2D content pipeline[11] - The game "二之國：交錯世界" (Ni no Kuni: Cross Worlds) was officially launched in China on February 28, 2024, developed in collaboration with Netmarble, Tencent, and the company, leveraging the UE4 engine and featuring a rich fantasy creature system[12] - Overseas casual games accounted for 5.11% of the market in 2023, growing by 3.32% compared to 2022, making it the fastest-growing category[17] - The company plans to enhance the competitive potential of "Subway Surfers" by connecting single-player games online and organizing various tournaments to increase user engagement[17] - The company aims to launch the mobile version of "Calabiu" domestically in the second half of 2024 and expand globally with client, mobile, and console versions[17] - The company increased the update frequency of "Calabiu" to one season every two months, introducing new characters, maps, and lounges to maintain game appeal[17] - RPG remains the largest mobile game category globally, with the company focusing on innovative gameplay, regional themes, and global IP collaborations for "Honor of All-Stars" and "Mech Arena"[17] Fanbook and AI Integration - The company's Fanbook community platform enhanced user engagement and activity through AI tools and innovative applications[8] - Fanbook added over 10 million new users and 40,000 new communities by the end of 2023, with content creators generating over 2 billion exposures across platforms[13] - Fanbook integrated AI companionship capabilities, enhancing user engagement and retention, with over 300,000 creators participating in AI-driven content creation activities, producing over 1 million high-quality AI works[14] - The AI-driven character "星繪" (Xing Hui) in the "卡拉彼丘" (Calabiyau) community significantly enhanced user experience and engagement, becoming a memorable IP for players[14] - Fanbook's AI tools and modular operations improved efficiency, enabling the platform to support millions of users and enhance content creation and management for game developers[13] - The company is leveraging AI capabilities in the Fanbook community, introducing new AI companion features and an "AI Storybook Master" function for "Dream Garden"[17] Strategic Initiatives and Market Expansion - The company plans to expand into the Middle East market in 2024, starting with participation in the LEAP tech exhibition and signing a memorandum of understanding with a Saudi cloud computing company to promote gaming and esports in the region[16] - The company aims to strengthen global distribution, deployment, and R&D capabilities in 2024, focusing on both domestic and overseas markets to increase product penetration and global competitiveness[16] - The company streamlined operations by shutting down non-core businesses, optimizing organizational structure, and focusing on four independent business lines, leading to improved revenue quality and cost reductions[15] - The company's cost-saving measures and focus on core gaming businesses contributed to a robust increase in profitability and cash flow generation in 2023[15] - The company's operating cash flow increased significantly to RMB 253.0 million in 2023, up from RMB 93.9 million in the previous year, driven by core game revenue growth and cost optimization[15] Corporate Governance and Leadership - Executive Director Chen Xiangyu holds approximately 16.72% of the company's issued shares as of the annual report date[67] - Brilliant Seed Limited holds 236,599,922 shares, representing 15.02% of the company's equity[75] - Tencent Mobility Limited holds 249,141,192 shares, representing 15.82% of the company's equity[75] - iDreamSky Technology Limited holds 120,842,927 shares, representing 7.67% of the company's equity[75] - Dream Investment Holdings Limited holds 120,842,927 shares, representing 7.67% of the company's equity[75] - Dream Technology Holdings Limited holds 120,842,927 shares, representing 7.67% of the company's equity[75] - Chen Xiangyu holds 26,720,800 shares directly, representing 1.70% of the company's equity[75] - Guan Song holds 14,978,000 shares directly, representing 0.95% of the company's equity[71] - Gao Liandun holds 13,965,000 shares through controlled entities, representing 0.89% of the company's equity[71] - Yang Jialiang holds 912,000 shares directly, representing 0.06% of the company's equity[71] - Brilliant Seed is wholly owned by Mr. Chen, who is deemed to have an interest in the shares held by Brilliant Seed under the Securities and Futures Ordinance[76] - Tencent Mobility Limited is a wholly-owned subsidiary of Tencent Holdings Limited, which is deemed to have an interest in the shares held by Tencent Mobility Limited under the Securities and Futures Ordinance[77] - iDreamSky Technology Limited is wholly owned by Dream Investment Holdings Limited, which is wholly owned by Dream Technology Holdings Limited, with no shareholder holding one-third or more of the shares in Dream Technology Holdings Limited[77] - The maximum number of restricted share units under the Pre-IPO Restricted Share Unit Plan is 86,270,450, equivalent to 5.48% of the company's issued shares as of the annual report date[82] - In 2023, the company granted 700,000 restricted share units to Mr. Yang Jialiang, with a fair value of HK$4.00 per unit at the grant date[84] - The vesting schedule for the 700,000 restricted share units granted in 2023 is 30% in 2023, 30% in 2024, and 40% in 2025, based on performance evaluation[84] - As of December 31, 2023, the total number of unvested restricted share units under the Pre-IPO Restricted Share Unit Plan was 6,062,191[86] - The company adopted a new 10-year Share Incentive Plan in 2023, which allows the board to grant share options and/or restricted share units to eligible participants[88] - The 2023 Share Incentive Plan aims to recognize contributions, retain talent, and align the interests of participants with shareholders by providing ownership opportunities[89] - The maximum number of shares that can be granted to any participant under the 2023 Share Incentive Plan within any 12-month period is 1% of the issued shares as of the plan adoption date[90] - The 2023 Share Incentive Plan has a remaining validity period of over nine years, with a maximum of 28,207,966 shares available for future grants, representing 1.79% of the total issued shares as of the annual report date[91][92] - No share options or restricted share units were granted under the 2023 Share Incentive Plan during the year ended December 31, 2023, leaving 28,207,966 shares available for future grants[95] - The 2023 New Share Option Plan allows for the issuance of up to 56,415,933 shares, representing 3.58% of the total issued shares as of the annual report date[100] - During the year ended December 31, 2023, 8,880,000 share options were granted under the 2023 New Share Option Plan, with no options exercised, canceled, or lapsed during the period[104] - The 2023 New Share Option Plan aims to retain and incentivize employees, align their interests with shareholders, and attract talent for the company's development[97] - The vesting period for options under both the 2023 Share Incentive Plan and the 2023 New Share Option Plan must be at least 12 months[93][101] - The exercise price for options under the 2023 New Share Option Plan must not be lower than the higher of the closing price on the grant date, the average closing price over the preceding five trading days, or the nominal value per share[102] - No share options were granted to directors, senior management, or major shareholders under the 2023 New Share Option Plan during the year ended December 31, 2023[104] - The 2023 New Share Option Plan has a validity period of ten years from the adoption date, with over nine years remaining as of the annual report date[99] - The 2023 New Share Option Plan restricts any single participant from being granted options exceeding 1% of the total issued shares within a 12-month period[98] - The company repurchased a total of 1,130,800 shares on the Hong Kong Stock Exchange during the reporting period, with a total consideration (before expenses) of HKD 3,451,380[109] - The company granted a total of