传媒/游戏Ⅱ 公 司 研 创梦天地（01119.HK） 2023 年经调整净利润扭亏为盈，期待新游戏表现 究 2024年04月02日 ——港股公司信息更新报告 投资评级：买入（维持） 方光照（分析师） 田鹏（分析师） fangguangzhao@kysec.cn tianpeng@kysec.cn 日期 2024/3/28 证 书编号：S0790520030004 证书编号：S0790523090001 港 当前股价(港元) 2.560  2023年经调整净利润扭亏为盈，看好新游戏上线表现，维持“买入”评级 股 一年最高最低(港元) 4.440/1.350 公司2023年实现营业收入19.16亿元（同比-29.9%），实现归母净利润-5.56亿元 公 司 总市值(亿港元) 40.31 （亏损同比缩窄 77.68%），2023 年毛利率为 37.3%（同比+1.3pct），经调整净利 信 流通市值(亿港元) 40.31 润为 1.40 亿元（同比扭亏为盈）。2023H2 公司实现营业收入 7.95 亿元，（同比 息 总股本(亿股) 15.75 -41.22%，环比-29.06%），实现归母净利润-5.97亿元 ...

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 1,916,473, a decrease of 26% from RMB 2,594,528 in 2022[2] - Adjusted annual profit for 2023 was RMB 139,597, compared to a loss of RMB 576,152 in 2022, indicating a significant turnaround[2] - Revenue for the year ended December 31, 2023, decreased by 26.1% to approximately RMB 1,916.5 million compared to RMB 2,594.5 million in 2022[15] - Game revenue accounted for 96.5% of total revenue in 2023, amounting to RMB 1,849.1 million, down 27.0% from RMB 2,531.3 million in 2022[16] - The annual loss from continuing operations decreased from RMB 2,521.6 million to RMB 456.8 million, with adjusted annual profit for 2023 at RMB 139.6 million compared to an adjusted loss of RMB 576.2 million in 2022[26] - The company reported a net loss of RMB 560,818,000 for the year ending December 31, 2023[54] - The company incurred a net loss attributable to owners of RMB 556,347 thousand for the year, significantly improved from a loss of RMB 2,492,293 thousand in 2022[47] - The basic loss per share from continuing operations was RMB 0.32, an improvement from RMB 1.75 in the previous year[47] Game Performance - The games "Dream Garden" and "Dream Home" saw revenue increase by over 50% compared to the same period in 2022, achieving historical highs since their launch[4] - "Subway Surfers" maintained its popularity ten years post-launch, ranking among the top free games on iOS in mainland China, with 12 new versions released in 2023[4] - The newly launched domestic version of "Mecha Squad" achieved a ranking of seventh in iOS shooting category revenue during the Spring Festival period in 2024[4] - The company successfully launched 10 new versions of "Dream Garden" in 2023, introducing localized themes and a charity-themed version in collaboration with the China Animal Protection Association[4] - The self-developed game "Kara Bichu" achieved over 60% increase in daily active users during the public beta, with a year-on-year user growth of 130% and a player retention rate improvement of approximately 10%[6] - "Kara Bichu" became the first in multiple rankings, including the Bilibili reservation list and shooting category popularity index, and maintained a leading position on WeGame's hot new products list[6] - The game "Honor of Kings" maintained its position as the top horizontal action fighting RPG mobile game, with seven major updates in 2023, including a collaboration with a well-known domestic animation IP[7] User Engagement and Community - The community platform Fanbook has enhanced user engagement and interaction, contributing to the overall growth of the user base[3] - Fanbook community supported over 10 million users by the end of 2023, with more than 40,000 new communities created and overall content exposure exceeding 2 billion times[9] - The company emphasizes a user-centered approach and high-quality game operations as key competitive advantages in the gaming industry[3] - The AI tools deployed in the Fanbook community have attracted over 300,000 creators, generating more than 1 million quality AI works in the past year[9] - The introduction of AI capabilities in the Fanbook community aims to enhance user retention and expand commercial applications[12] Financial Health and Cash Flow - The company reported a significant increase in operating cash flow, with a net inflow of RMB 253.0 million in 2023, compared to RMB 93.9 million in the same period last year[10] - The company's cash and cash equivalents increased by 110.4% to approximately RMB 190.4 million as of December 31, 2023, up from approximately RMB 90.5 million in 2022[33] - Total borrowings decreased to approximately RMB 966.4 million in 2023 from RMB 1,011.2 million in 2022, with secured bank borrowings accounting for RMB 876.42 million[34] - The current ratio improved to 1.07 as of December 31, 2023, compared to 0.87 in the previous year, indicating better short-term financial health[33] - The debt ratio decreased to 53.0% in 2023 from 58.5% in 2022, reflecting a reduction in total liabilities relative to total assets[33] Cost Management and Expenses - Total revenue cost decreased by 43.3% year-on-year to RMB 1,243.0 million for the year ended December 31, 2023, with the percentage of revenue cost dropping from 84.6% to 64.9%[19] - Sales and marketing expenses fell by 78.5% to RMB 230.6 million, representing 12.0% of revenue, down from 41.4% in the previous year, due to improved customer acquisition efficiency[20] - Research and development expenses decreased from RMB 316.0 million to RMB 240.0 million, while the percentage of revenue increased slightly from 12.2% to 12.5%[22] - The total expenses for the year ended December 31, 2023, amounted to RMB 1,845,918 thousand, a significant decrease from RMB 4,445,327 thousand in the previous year[61] Strategic Initiatives and Future Plans - The company plans to expand "Kara Bichu" to multiple platforms, including consoles and mobile devices, enhancing its global reach[6] - The company plans to enter the Middle East market in March 2024, showcasing its game products at the LEAP technology exhibition[11] - The company will continue to focus on localization and global deployment of high-quality game IPs to expand its market presence[11] - The company plans to launch multiple versions of several games in 2024, which is expected to generate positive cash flow[55] - The company anticipates continued improvement in operating performance and cash inflows in 2024 due to established user loyalty and reduced advertising expenses[55] Corporate Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[89] - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2023[92] - The figures in the performance announcement have been verified by the auditors against the audited consolidated financial statements[93] - The annual performance announcement and annual report will be published on the Stock Exchange and the company's website at an appropriate time[94] - The company is registered in the Cayman Islands and its shares are listed on the Hong Kong Stock Exchange (stock code: 1119)[96]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,121,245 thousand, a decrease of 18.8% compared to RMB 1,381,472 thousand in the same period of 2022[6]. - Gross profit for the same period was RMB 505,769 thousand, down 15.5% from RMB 598,504 thousand year-over-year[6]. - Profit before tax was RMB 41,075 thousand, a significant improvement from a loss of RMB 223,255 thousand in the prior year[6]. - Adjusted profit for the period was RMB 201,831 thousand, compared to a loss of RMB 51,027 thousand in the same period last year[6]. - The company reported a period profit of RMB 40,590 thousand, recovering from a loss of RMB 222,000 thousand in the previous year[6]. - The company's total revenue for the first half of 2023 decreased by 18.8% to approximately RMB 1,121.2 million, compared to RMB 1,381.5 million in the same period last year[18]. - Core game revenue accounted for 95.0% of total revenue, amounting to RMB 1,065.1 million, down from RMB 1,284.4 million in the previous year[19]. - The company reported a net profit of RMB 40,590 thousand for the period, a significant recovery from a net loss of RMB 222,000 thousand in the same period last year[68]. - Basic and diluted earnings per share for the period were RMB 0.03, compared to a loss per share of RMB 0.15 in the previous year[68]. - The total comprehensive income for the period was RMB 40,712 thousand, compared to a loss of RMB (203,305) thousand in the same period of 2022, indicating a turnaround in financial performance[71]. Operational Strategy - The company is focusing on new product development and technology advancements to enhance market competitiveness[6]. - Future outlook includes strategic market expansion and potential mergers and acquisitions to drive growth[6]. - The company aims to improve user engagement through innovative gaming experiences and community features[6]. - Management emphasized the importance of adapting to market trends and consumer preferences in future strategies[6]. - The operational strategy has shifted from sales-driven growth to community-driven product growth, effectively lowering customer acquisition costs[8]. - The company plans to continue expanding its gaming portfolio with new titles and innovative gameplay to enhance user retention and engagement[9]. - The company aims to maintain a strong cash flow and improve profitability through enhanced user engagement and community-driven initiatives[10]. User Engagement and Community - The gaming industry in China has reached 600 million monthly active users, with growth driven by innovative products and refined user services[7]. - The company's core premium games, including "Subway Surfers," "Dream Garden," and "Honor of Kings," have seen a significant increase in revenue contribution, with "Subway Surfers" celebrating its 10th anniversary and maintaining stable growth[9]. - "Dream Garden" and "Dream Home" achieved record highs in daily active users, paying users, and payment rates during the first half of the year, driven by high-frequency communication with core users[9]. - The introduction of new gameplay modes and community engagement strategies has enhanced user interaction and community belonging, leading to increased online user engagement[10]. - The Fanbook platform, developed by the company, supports the operation of millions of users and has been instrumental in driving product growth through community engagement[12]. - The company has integrated generative AI capabilities into Fanbook to improve operational efficiency and enhance user engagement within the community[12]. - The strategic focus on user community-driven product development has resulted in a more sustainable growth model and extended product life cycles[10]. Cost Management and Efficiency - The company has successfully reduced management and operational costs through ongoing cost-cutting measures, contributing to improved profit margins[13]. - Research and development expenses decreased to RMB 141.6 million from RMB 184.4 million year-on-year, indicating a more efficient allocation of resources[17]. - Sales and marketing expenses fell by 73.0% from RMB 426.2 million to RMB 115.2 million, with the percentage of revenue decreasing from 30.9% to 10.3%[24]. - General and administrative expenses decreased by 51.0% from RMB 87.6 million to RMB 42.9 million, with the percentage of revenue dropping from 6.3% to 3.8%[25]. - R&D expenses decreased by 23.2% from RMB 184.4 million to RMB 141.6 million, with the percentage of revenue declining from 13.3% to 12.6%[26]. Financial Position and Cash Flow - Operating cash flow for the first half of 2023 was RMB 246 million, a significant increase from RMB 2.44 million in the same period last year, reflecting a strong focus on revenue quality and operational cash flow[14]. - Cash and cash equivalents increased by 110.2% to approximately RMB 190.2 million as of June 30, 2023, up from RMB 90.5 million at the end of 2022[35]. - Total liabilities decreased to RMB 2,262,184 thousand from RMB 2,529,176 thousand as of December 31, 2022, representing a reduction of approximately 10.6%[70]. - The company's cash flow from operating activities for the six months ended June 30, 2023, was RMB 245,540 thousand, a significant increase from RMB 2,466 thousand in the same period of 2022[72]. - The net cash generated from financing activities was RMB (81,351) thousand for the first half of 2023, an improvement from RMB (212,733) thousand in the same period of 2022[72]. Impairment and Financial Risks - The company reported an impairment loss of RMB 752.3 million for intangible assets and RMB 533.1 million for prepaid expenses in 2022 due to strategic adjustments and underperformance of certain games[44]. - The company has recognized a significant decline in recharge flow from certain games, necessitating full impairment provisions for related intangible assets[44]. - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no major changes in risk management policies reported[78]. - The company has not complied with certain financial covenants related to bank borrowings, which may lead to the immediate maturity of the 2025 convertible bonds[134]. Shareholder Information and Corporate Governance - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[52]. - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of governance[50]. - The board believes that the dual role of the chairman and CEO is beneficial for maintaining policy continuity and operational efficiency[50]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with applicable codes[50]. - As of June 30, 2023, the total number of shares issued was 1,410,398,345, with significant shareholdings by key executives[56].

分组1 - The company expressed gratitude to shareholders, investors, and media for their long-term attention and support during the 2023 interim results announcement [1] 分组2 - No specific financial data or key metrics were provided in the content [1] 分组3 - No business line data or key metrics were mentioned [1] 分组4 - No market data or key metrics were discussed [1] 分组5 - No strategic direction or industry competition details were shared [1] 分组6 - No management commentary on the operating environment or future outlook was provided [1] 分组7 - No other important information was disclosed [1] 问答环节所有提问和回答 - No Q&A session details were included in the content [1]

Financial Performance - Total revenue for the first half of 2023 was RMB 1,121,245 thousand, a decrease of 18.8% compared to RMB 1,381,472 thousand in the same period of 2022[2] - Gross profit for the first half of 2023 was RMB 505,769 thousand, down 15.5% from RMB 598,504 thousand year-on-year[2] - Adjusted net profit for the first half of 2023 reached RMB 201,831 thousand, a significant recovery from a loss of RMB 51,027 thousand in the same period of 2022[2] - Revenue for the six months ended June 30, 2023, decreased by 18.8% to approximately RMB 1,121.2 million compared to RMB 1,381.5 million for the same period in 2022[11] - Game revenue accounted for 95.0% of total revenue, amounting to RMB 1,065.1 million, down from RMB 1,284.4 million (93.0%) in the previous year[12][13] - Information services revenue decreased to RMB 40.5 million (3.6%) from RMB 48.0 million (3.5%) year-on-year, primarily due to a strategic reduction in in-app advertising[15] - IP derivative business revenue dropped significantly to RMB 11.4 million (1.0%) from RMB 41.9 million (3.0%) following its separation for independent operation[16] - The company recorded a profit of RMB 40.6 million for the six months ended June 30, 2023, compared to a loss of RMB 222.0 million in the same period of 2022[24] - Adjusted profit for the six months ended June 30, 2023, was RMB 201.83 million, compared to a loss of RMB 51.03 million in the same period of 2022, representing a significant turnaround[25] - EBITDA for the same period was RMB 154.75 million, compared to a loss of RMB 36.51 million in 2022, indicating improved operational performance[25] - Adjusted EBITDA increased to RMB 275.31 million from RMB 100.61 million year-over-year, reflecting a growth of 173.5%[30] Cost Management - Cost of revenue decreased by 21.4% to RMB 615.5 million, with the cost as a percentage of revenue declining from 56.7% to 54.9%[17] - Sales and marketing expenses fell by 73.0% to RMB 115.2 million, representing 10.3% of revenue, down from 30.9%[18] - General and administrative expenses decreased by 51.0% to RMB 42.9 million, accounting for 3.8% of revenue, down from 6.3%[19] - R&D expenses declined by 23.2% to RMB 141.6 million, representing 12.6% of revenue, down from 13.3%[20] - Total expenses for the six months ended June 30, 2023, amounted to RMB 916,158,000, a decrease of 39.2% compared to RMB 1,508,430,000 for the same period in 2022[51] Financial Position - Total cash and cash equivalents as of June 30, 2023, rose by 110.2% to approximately RMB 190.2 million from RMB 90.5 million at the end of 2022[31] - Total borrowings as of June 30, 2023, were approximately RMB 1,027.0 million, slightly up from RMB 1,011.2 million at the end of 2022[31] - Current assets were approximately RMB 2,061.3 million, while current liabilities were about RMB 1,899.0 million, resulting in a current ratio of 1.09, up from 0.87 at the end of 2022[33] - The debt ratio as of June 30, 2023, was 54.8%, down from 58.5% at the end of 2022, indicating improved financial stability[33] - The capital debt ratio was 71.2% as of June 30, 2023, compared to 80.5% at the end of 2022, showing a reduction in leverage[33] - The company reported a total equity of RMB 1,866,638 thousand as of June 30, 2023, an increase of 4.0% from RMB 1,794,542 thousand at the end of 2022[41] - Total liabilities decreased to RMB 2,262,184 thousand as of June 30, 2023, down 10.6% from RMB 2,529,176 thousand at the end of 2022[42] User Engagement and Growth - Core game revenue showed steady growth, with flagship titles like "Subway Surfers" and "Dream Garden" contributing significantly to user engagement and revenue[3] - The company is focusing on enhancing user engagement through the Fanbook platform, which supports over ten million users and aims to improve operational efficiency and user lifecycle value[5] - New gameplay features and community engagement strategies are being implemented to boost user interaction and retention across existing titles[4] - The company reported a significant increase in daily active users, with a total of 1.5 million daily active users, representing a 25% growth year-over-year[81] - Monthly active users reached 5 million, showing a 30% increase compared to the previous period[81] Future Outlook and Strategy - Future outlook indicates that self-developed games are expected to enter a harvest phase, driving new growth opportunities in 2023[8] - The company is committed to expanding its core gaming business while divesting from non-core operations to enhance revenue quality[6] - The company plans to continue its strategy of cost reduction and efficiency improvement, leading to a decrease in management and operational costs[6] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2024[82] - New product launches are expected to contribute an additional $50 million in revenue for the next fiscal year[82] - The company is investing $20 million in research and development for new gaming technologies[82] - A strategic partnership with Tencent is anticipated to enhance user engagement and retention rates by 10%[83] - The company aims for a revenue growth of 20% in the upcoming fiscal year, driven by new game releases and market expansion[82] - The board of directors has approved a share buyback program worth $10 million to enhance shareholder value[83] - The company is exploring potential acquisitions to diversify its product offerings and strengthen its market position[82] Shareholder and Governance - The company has resolved not to declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[57] - The company adopted the corporate governance code as its own governance code, ensuring compliance with applicable rules[74] - The company completed the repurchase and cancellation of RMB 758,000,000 of existing convertible bonds, representing 97.8% of the initial principal amount[77] - The conversion price of the existing convertible bonds was adjusted from HKD 4.99 to HKD 4.93 per share, increasing the maximum number of shares to be issued upon full conversion from 155,310,621 to 157,200,811 shares[77] - The company issued 164,177,200 shares at a price of HKD 3.10 per share to independent third parties on July 18, 2023[78] - The company issued HKD 386,000,000 of 5.00% convertible bonds due in 2028, convertible into a maximum of 106,043,956 shares[78]

Financial Performance - Revenue for 2022 was RMB 2,734,124 thousand, showing a slight increase from RMB 2,637,637 thousand in 2021[10] - Gross profit for 2022 significantly decreased to RMB 421,200 thousand from RMB 1,103,341 thousand in 2021[10] - The company reported a net loss of RMB 2,589,917 thousand in 2022, compared to a net loss of RMB 155,930 thousand in 2021[10] - Total assets decreased to RMB 4,323,718 thousand in 2022 from RMB 6,610,940 thousand in 2021[11] - Total liabilities increased to RMB 2,529,176 thousand in 2022 from RMB 2,401,698 thousand in 2021[11] - Total equity dropped to RMB 1,794,542 thousand in 2022 from RMB 4,209,242 thousand in 2021[11] - Revenue for 2022 increased by 3.7% to approximately RMB 2,734.1 million compared to RMB 2,637.6 million in 2021[24] - Gross profit for 2022 was RMB 421.2 million, a significant decrease from RMB 1,103.3 million in 2021[23] - Operating loss for 2022 was RMB 2,391.96 million, compared to a loss of RMB 16.58 million in 2021[23] - The group recorded a net operating cash flow of approximately RMB 94 million for the year ended December 31, 2022[18] - Monthly net operating cash flow has been positive since October 2022, indicating improved financial health[18] - The company recorded a net loss of approximately RMB 2.59 billion for the year ended December 31, 2022[190] - As of December 31, 2022, the company's current liabilities exceeded its current assets by approximately RMB 330 million[190] - The total borrowings of the company amounted to RMB 1.011 billion, with cash and cash equivalents of approximately RMB 91 million as of December 31, 2022[190] - The company failed to comply with certain financial covenants related to a bank loan of EUR 59.8 million, potentially triggering immediate repayment or acceleration of other borrowings and convertible bonds[190] - The company's convertible bond holders have the right to require the company to redeem all or part of the bonds on October 16, 2023[190] - Annual net loss increased from RMB 155.9 million in 2021 to RMB 2,589.9 million in 2022, with an adjusted annual loss of RMB 642.9 million in 2022 compared to an adjusted annual profit of RMB 110.8 million in 2021[39] - Adjusted EBITDA decreased from RMB 390.6 million in 2021 to a loss of RMB 314.6 million in 2022[40][43] - Cash and cash equivalents decreased by 87.3% from RMB 714.8 million in 2021 to RMB 90.5 million in 2022[44] - Total borrowings decreased from RMB 1,350.4 million in 2021 to RMB 1,011.2 million in 2022, with secured bank loans accounting for RMB 991.2 million of the total in 2022[44][45] - The company reported a significant increase in impairment losses, including RMB 752.3 million for intangible assets and RMB 360.9 million for financial assets in 2022[43] - Depreciation and amortization expenses increased from RMB 233.3 million in 2021 to RMB 250.8 million in 2022[43] - The company's financial performance was significantly impacted by fair value losses on financial assets, totaling RMB 83.2 million in 2022[43] - The company's adjusted annual loss excludes various non-operational items, including share-based compensation, fair value changes, impairment provisions, and foreign exchange gains/losses[40][43] - Total revenue for 2022 was RMB 1,011,241 thousand, a decrease from RMB 1,350,430 thousand in 2021[46] - The company's current ratio decreased to 0.87 in 2022 from 2.42 in 2021[46] - Debt-to-asset ratio increased to 58.5% in 2022 from 36.3% in 2021[47] - Capital expenditure for 2022 was RMB 221.9 million, down from RMB 266.4 million in 2021[49] - Total borrowing secured by collateral was RMB 751.2 million, accounting for 74.3% of total borrowing in 2022[48] - Proceeds from share placement totaled RMB 349.23 million, fully utilized for game development and offline store expansion[52][53] - Proceeds from share subscription amounted to RMB 159.06 million, fully allocated to game R&D and offline store expansion[56][57] - The company's capital-to-debt ratio increased significantly to 80.5% in 2022 from 26.3% in 2021[47] - No major acquisitions, disposals, or investments occurred in 2022[50] - The company did not hedge any foreign exchange fluctuations in 2022[50] - The company acquired 70% of the issued shares of Tianjin Huohun Network Technology Co., Ltd. for a total consideration of RMB 1.05 billion, with goodwill recognized at RMB 989.23 million[59] - Tianjin Huohun's net profit during the performance assessment period was RMB 210 million, falling short of the target of RMB 300 million, leading to a compensation mechanism under the agreement[59] - The company received a cash compensation of RMB 315 million from the seller instead of acquiring the remaining 30% equity, resulting in an other income recognition of RMB 294.91 million[59] - Goodwill impairment losses for Tianjin Huohun were RMB 422.33 million, RMB 493.68 million, and zero for the years ending December 31, 2019, 2020, and 2021, respectively[59] - An additional goodwill impairment loss of RMB 73.22 million was recognized for the year ending December 31, 2022, due to underperformance of existing games and no new game development[60] - Revenue from the top five customers accounted for 8.7% of the company's total revenue for the year ending December 31, 2022, with the largest single customer contributing 3.5%[68] - The top five suppliers accounted for 28.8% of the company's total purchases for the year ending December 31, 2022, with the largest single supplier contributing 9.4%[69] - The company employed 1,048 employees as of December 31, 2022, with total compensation expenses (excluding share-based compensation) increasing by 32.3% to RMB 399.3 million[71] - The company did not recommend the payment of a final dividend for the year ending December 31, 2022[67] - The company's total goodwill impairment losses for Tianjin Huohun over the years 2019-2022 amounted to RMB 989.23 million, reflecting the challenges in achieving expected performance[59][60] Game Development and Performance - The company aims to achieve profitability in the 2023 fiscal year by focusing on cost reduction and efficiency improvement[12] - Key games such as "Dream Garden," "Dream Home," "Subway Surfers," and "Temple Run" continue to maintain millions of daily active users and stable revenue[12] - The company is enhancing its digital tools to improve game development granularity and pre-testing verification to enhance product certainty and player experience[12] - Despite challenges in 2022, the company has made significant progress in its long-term strategy of focusing on game development and innovation[12] - Subway Surfers achieved a peak daily active user count of over 10 million during the 2023 Spring Festival, with monthly active users exceeding 100 million[13] - In January 2023, over 30% of Subway Surfers users engaged in in-game chats and emojis, with total interactions surpassing 870 million and battle counts exceeding 1.25 billion[13] - Glory All-Star, a self-developed game, generated over RMB 1 billion in revenue in 2022, ranking first in its category[14] - The company plans to launch two self-developed games, "Karabiu" and "Ni no Kuni: Cross Worlds," in 2023, with "Ni no Kuni: Cross Worlds" expected to enter testing in Q2 2023[19] - The company obtained licenses for two self-developed games and plans to launch them in the second half of 2023[20] - Revenue from the gaming and information services business accounted for 94.9% of total revenue in 2022, while IP derivative business contributed 5.1%[24] - The company has integrated AI technologies like ChatGPT and Stable Diffusion into various aspects of game development and operations to improve efficiency[19] - Fanbook has established a user research community for "Karabiu," which has consistently ranked 1 on Bilibili's new game reservation chart[19] - Game revenue increased by 10.2% to RMB 2,531.3 million in 2022, accounting for 97.6% of total game and information services revenue[25] - Information services revenue decreased significantly to RMB 49.0 million in 2022, down from RMB 290.4 million in 2021[25][27] - Average monthly active users decreased to 124.0 million in 2022 from 128.0 million in 2021[26] - Average monthly paying users increased to 5.9 million in 2022 from 5.5 million in 2021[26] - Average revenue per paying user rose to RMB 36.4 in 2022 from RMB 34.2 in 2021[26][27] - IP derivative business revenue surged 281.4% to RMB 139.6 million in 2022[28] - Cost of revenue increased by 50.7% to RMB 2,312.9 million in 2022, representing 84.6% of total revenue[29] - Sales and marketing expenses rose 123.4% to RMB 1,138.7 million in 2022, accounting for 41.6% of revenue[30] - Intangible asset impairment losses increased significantly to RMB 752.3 million in 2022 from RMB 49.7 million in 2021[33] - Financial asset impairment losses increased to RMB 360.9 million in 2022 from RMB 20.6 million in 2021[34] - Net financial costs increased from RMB 70.0 million in 2021 to RMB 176.5 million in 2022, primarily due to a foreign exchange loss of RMB 52.4 million in 2022 compared to a foreign exchange gain of RMB 59.1 million in 2021[37] - The company recorded a tax expense of RMB 12.9 million in 2022, compared to a tax credit of RMB 25.3 million in 2021[38] - The company's core game business continues to grow steadily, with new game products set to launch, enhancing profitability and cash flow generation[18] - The company sold 27% equity of a subsidiary engaged in IP derivative business in February 2023, resulting in loss of control[151] - The company received RMB 150,000,000 in prepayments for game revenue sharing agreements, with RMB 139,000,000 already received as of March 2023[151] Corporate Governance and Leadership - The company's executive directors, including Chairman and CEO Chen Xiangyu, have service contracts with a term of three years, subject to re-election under the Articles of Association[77] - Chen Xiangyu, the founder and largest shareholder, holds approximately 18.39% of the company's total issued share capital as of the report date[81] - The company's senior management compensation for 2022 ranged between HKD 0 and HKD 10,000,000, with 5 individuals falling within this range[79] - Chen Xiangyu holds 26,720,800 shares directly, representing 1.89% of the company's equity, and 232,643,922 shares through controlled entities, representing 16.48% of the company's equity[84] - Guan Song, an executive director, holds 14,876,000 shares directly (1.05%) and 18,361,220 shares through controlled entities (1.30%)[84] - Gao Liandun, an executive director, holds 13,965,000 shares through controlled entities, representing 0.99% of the company's equity[84] - The company has not entered into any management contracts for the administration of its business during the fiscal year 2022[82] - No directors had any material interests in significant transactions, arrangements, or contracts involving the company or its subsidiaries during the reporting period[80] - The company's independent non-executive directors have confirmed their independence in accordance with Listing Rule 3.13[76] - The company's Remuneration and Assessment Committee reviews directors' compensation policies based on company performance, individual performance, and market practices[78] - Brilliant Seed holds 232,643,922 shares, representing 16.48% of the company's equity[90] - Tencent Mobility holds 249,141,192 shares, representing 17.65% of the company's equity[90] - Bank of America Corporation holds 196,960,947 shares, representing 13.96% of the company's equity[90] - iDreamSky Technology Limited holds 127,839,505 shares, representing 9.06% of the company's equity[90] - Yong Rong (Hong Kong) Asset Management holds 105,564,400 shares, representing 7.48% of the company's equity[90] - The restricted share unit plan allows for the issuance of up to 86,270,450 shares, representing 6.12% of the company's issued shares[96] - The restricted share unit plan has a duration of 10 years from the adoption date, with over 5 years remaining as of the report date[95] - The restricted share unit plan does not specify a vesting period, with actual vesting periods ranging from 12 to 48 months[97] - The company has not established any share option plans since its listing date[93] - No directors or senior executives have any rights to purchase shares or debentures of the company or any other corporate body[88] - The company repurchased a total of 9,932,000 shares on the Hong Kong Stock Exchange during the reporting period, with a total cost (before expenses) of HKD 38,895,987.51[104] - The highest purchase price per share was HKD 5.01 in June 2022, and the lowest was HKD 2.71 in April 2022[105] - The company granted 16,283,801 restricted share units to employees during the year, with 7,598,961 units vested and 1,582,769 units forfeited[101] - The weighted average closing price of shares immediately before the vesting of restricted share units was HKD 4.623 per share[102] - The company completed the issuance of 32,854,730 new shares on February 28, 2022, as part of a subscription agreement with related parties[107] - The company did not grant or vest any restricted share units to directors during the year[100] - The company's share repurchase plan reflects the board's confidence in the company's long-term business prospects and growth potential[104] - The company has no other non-exempt connected transactions under Chapter 14A of the Listing Rules during the reporting period[108] - The company has multiple ongoing connected transaction agreements with Tencent, a major shareholder[108] - The company's highest-paid individuals held 521,296 restricted share units as of December 31, 2022, with a vesting period of 0 to 4 years[101] - Shenzhen Dreamscape signed a three-year promotion cooperation framework agreement with Tencent Computer, effective from January 1, 2021, with annual caps for promotion service fees until December 31, 2023[110] - The promotion cooperation framework agreement aims to leverage Tencent's competitive advantages to enhance Dreamscape's promotion service business[111] - Dreamscape signed a three-year payment service framework agreement with Tencent Computer, effective from January 1, 2021, with annual caps for payment service fees until December 31, 2023[112] - The payment service framework agreement allows Dreamscape to provide Tencent's payment channels to its users, improving user satisfaction[114] - Dreamscape signed a three-year product and service purchase framework agreement with Tencent Computer, effective from January 1, 2021, with annual caps for procurement fees until December 31, 2023[116] - The product and service purchase framework agreement enables Dreamscape to access Tencent's cloud services and other technical products, reducing unnecessary expenses[117] - Dreamscape signed a one-year intellectual property cooperation framework agreement with Tencent Computer, effective from January 1, 2021, later revised on September 20, 2021, with adjusted annual caps for related fees until December 31, 2023[120] - The intellectual property cooperation framework agreement enhances Dreamscape's IP-related product development and operational capabilities, increasing market visibility and share[121] - The revised 2021 Intellectual Property Cooperation Framework Agreement constitutes a continuing connected transaction with an annual percentage ratio exceeding 0.1% but below 5% for the three years ending December 31, 2023[122] - The 2021 Game Cooperation Framework Agreement with Tencent Computer includes mutual payment of distribution and/or licensing fees, with revised annual caps for the three years ending December 31, 2023[123] - The QQfamily Cooperation Agreement with Tencent Tech allows the company to open 150 QQfamily-themed offline stores in China, including 7 flagship stores and standard stores, over the first three years[126] - The company is required to pay Tencent Tech a total of RMB 10.0 million over the first three years of the QQfamily Cooperation Agreement, with an additional deposit of RMB 0.3 million[127] - The QQfamily Cooperation Agreement is a continuing connected transaction with an annual percentage ratio exceeding 0.1% but below 5% for the five years ending December 31, 2026[129] - Tencent Group's payment to the company for promotion services was RMB 11,397 thousand, compared to the suggested annual cap of RMB 46,800 thousand[131] - The company's payment to Tencent Group for payment services was RMB 3,403 thousand, compared to the suggested annual cap of RMB 5,184 thousand[131] - The company's payment to Tencent Group

[0 -> 29] 仅拥有多款知名度高且大用户规模的游戏《梦幻花园》《梦幻家园》《地铁跑酷》和《神庙逃亡》都是长生命周期高活跃用户高用户粘性的经典产品上线都超过6年以上依然保持着千万级的日活用户数和稳定的收入在2022年 [30 -> 59] 我们游戏业务的月平均活用户超过1.2亿月付费用户数达到590万付费用户的up超过36元经过2022年的业务梳理我们将聚焦游戏和分Book两块业务基于分Book构建的社区为载体的云屿体平台在今年我们继续会加大 [60 -> 88] 跑酷和消除精英玩法的产业投入扩大跑酷和消除玩法的细分品类的优势地位并最大限度地利用分布可构建的社区运营机制利用好二次创作的裂变以及运营好现有的重量用户从而增强自身的竞争优势 [90 -> 114] 接下来我想详细地介绍几块业务的细节2022年游戏业务聚焦三大赛道专注自研和精品游戏运营地铁跑酷等精品游戏的基本盘持续在增长确保公司的稳定的资金经营性现金流 [115 -> 140] 其中我们地铁跑酷通过团队的多次迭代开发提升用户体验我们借助分部可与用户内容共创让这款已经超过10年的游戏重新获得高速增长春节期间地铁跑酷的DAU达到了2000万日活跃在此 ...

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 2,734,124,000, a slight increase from RMB 2,637,637,000 in 2021, representing a growth of approximately 3.7%[3] - The adjusted annual loss for 2022 was RMB 642,906,000, compared to an adjusted profit of RMB 110,799,000 in 2021, indicating a significant decline in profitability[3] - In 2022, the company's total revenue increased by 3.7% year-on-year to approximately RMB 2,734.1 million, compared to RMB 2,637.6 million in 2021[12] - Revenue from the gaming and information services business accounted for 94.9% of total revenue in 2022, up from 88.3% in 2021, while IP derivative business revenue rose to 5.1% from 1.4%[12] - The gaming revenue increased by 10.2% from RMB 2,297.9 million in 2021 to RMB 2,531.3 million in 2022, driven by strong performance of core operational games[14] - The company reported a total comprehensive loss of RMB 2.534 billion for the year ended December 31, 2022, compared to a loss of RMB 167.42 million in 2021[54] - The company reported a net loss attributable to shareholders of RMB 2,492,293 thousand, compared to a loss of RMB 157,478 thousand in the previous year, resulting in a basic loss per share of RMB (1.80)[77] User Engagement - Daily active users for "Subway Surfers" exceeded 10 million during the 2023 Spring Festival, with monthly active users surpassing 100 million, showcasing strong user engagement[5] - "Honor of Kings" generated over RMB 1 billion in revenue during 2022, maintaining its position as the top-ranked game in the action RPG category[6] - Fanbook, a user community management tool, achieved over 10 million users and 1 million daily active users, marking a significant milestone for the company[7] - Average monthly active users decreased from 128.0 million in 2021 to 124.0 million in 2022, attributed to the gradual termination of non-core products[15] - Average monthly paying users increased from 5.5 million in 2021 to 5.9 million in 2022, mainly due to the strong performance of "Subway Surfers" during the summer[15] Cost and Expenses - Total revenue cost rose by 50.7% year-on-year to RMB 2,312.9 million for the year ended December 31, 2022, with the percentage of revenue cost increasing from 58.2% in 2021 to 84.6% in 2022[19] - Sales and marketing expenses surged by 123.4% year-on-year to RMB 1,138.7 million for the year ended December 31, 2022, accounting for 41.6% of revenue, up from 19.3% in 2021[20][21] - General and administrative expenses decreased by 51.0% year-on-year to RMB 122.5 million for the year ended December 31, 2022, representing 4.5% of revenue, down from 9.5% in 2021[22] - R&D expenses remained stable at approximately RMB 322.6 million for the year ended December 31, 2022, compared to RMB 325.2 million in 2021, focusing on core self-developed games and digital tools[23] Impairment and Losses - Impairment losses on intangible assets increased significantly from RMB 49.7 million in 2021 to RMB 752.3 million in 2022, due to a strategic shift towards high-quality game releases and self-development[24] - Net impairment losses on financial assets rose from RMB 20.6 million in 2021 to RMB 360.9 million in 2022, attributed to changes in the industry ecosystem affecting the repayment ability of partners[25] - The annual net loss increased dramatically from RMB 155.9 million in 2021 to RMB 2,589.9 million in 2022, with adjusted annual loss reported at RMB 642.9 million for 2022 compared to an adjusted profit of RMB 110.8 million in 2021[30][31] - The EBITDA for the year ended December 31, 2022, was RMB (2,191,301) thousand, a sharp decrease from RMB 186,585 thousand in 2021[35] Cash Flow and Financial Position - As of December 31, 2022, the total cash and cash equivalents decreased by 87.3% to approximately RMB 90.5 million from about RMB 714.8 million as of December 31, 2021[36] - The total borrowings as of December 31, 2022, were approximately RMB 1,011.2 million, down from RMB 1,350.4 million in 2021[37] - The current ratio as of December 31, 2022, was 0.87, a significant drop from 2.42 as of December 31, 2021[38] - The debt ratio increased to 58.5% as of December 31, 2022, compared to 36.3% in the previous year[38] - The company reported a net loss of RMB 2,589,917,000 for the year ended December 31, 2022, with current liabilities exceeding current assets by RMB 329,469,000[100] Strategic Initiatives - The company plans to focus on optimizing cost efficiency and aims to achieve profitability in the fiscal year 2023[4] - The company plans to launch two key self-developed games in 2023, with "Kara Bichu" and "Ni no Kuni: Cross Worlds" expected to drive new growth[10][11] - The company has separated its IP derivative business for independent financing and management, allowing a renewed focus on core gaming operations[11] - The company plans to establish QQfamily offline stores in popular commercial areas of first- and second-tier cities in mainland China[47] - The company aims to seek investment and acquisition opportunities that complement its ecosystem and enhance game development capabilities and offline entertainment business[47] Employee and Governance - As of December 31, 2022, the company had 1,048 full-time employees, a decrease from 1,113 in 2021, with most employees located in China[44] - The company provides competitive compensation packages, including performance bonuses and stock incentives, to attract and retain qualified employees[44] - The company has implemented various training programs to enhance employees' professional skills and leadership capabilities[44] - The company plans to continue monitoring and reviewing its corporate governance practices to ensure compliance with applicable codes[102] Acquisitions and Partnerships - The company acquired 70% of Tianjin Huohun for a total consideration of RMB 1.05 billion, with goodwill recognized at RMB 989.23 million[51] - The company lost control of a subsidiary after selling a 27% stake in its IP derivatives business in February 2023[106] - A strategic partnership with Tencent is anticipated to enhance user engagement and retention rates by 20%[112] Future Outlook - The company plans to improve operational performance significantly in 2023, expecting to generate positive operating cash flow[61] - The company has set a performance guidance of 25% revenue growth for the upcoming fiscal year[112] - The company is exploring potential acquisitions to bolster its portfolio and expand its user base[112]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,381,472 thousand, representing a 1.1% increase from RMB 1,367,072 thousand in the same period of 2021[9]. - Gross profit increased by 14.1% to RMB 591,889 thousand compared to RMB 518,770 thousand in the prior year[9]. - Loss before income tax was RMB (223,255) thousand, a significant increase of 176.2% from RMB (80,842) thousand in the previous year[9]. - The period loss for the six months ended June 30, 2022, was RMB (222,000) thousand, which is a 226.7% increase from RMB (67,956) thousand in the same period of 2021[9]. - Adjusted loss for the period was RMB (156,922) thousand, compared to an adjusted profit of RMB 44,364 thousand in the same period last year, reflecting a decrease of 453.7%[9]. - Operating loss widened to RMB (150,492) thousand compared to RMB (14,125) thousand in the previous year[14]. - The net loss for the six months ended June 30, 2022, was RMB 222.0 million, compared to RMB 68.0 million for the same period in 2021[35]. - Basic and diluted loss per share for the six months ended June 30, 2022, was RMB 0.15, compared to RMB 0.06 for the same period in 2021[85]. - EBITDA for the six months ended June 30, 2022, was RMB (24.7) million, a significant decline from RMB 103.9 million for the same period in 2021[39]. Market and Business Development - The company achieved a stable performance despite a challenging environment, with ongoing optimization of its gaming business and a focus on self-developed games[10]. - The domestic gaming market saw a decline in both revenue and user scale in the first half of 2022, as reported in the "2022 China Gaming Industry Report"[10]. - The company has launched several self-developed games, including "Honor All-Stars," and has a pipeline of upcoming titles such as "Beware of Fire," "Tuanzi Hehe House," and "Witch's Diary"[10]. - The gaming business is undergoing inventory adjustments, with a focus on competitive games, puzzle games, and RPGs to control costs and enhance user experience[10]. - The company aims to strengthen partnerships with IP owners and artists to explore new market opportunities and expand its product offerings[12]. - The company is committed to enhancing its digital capabilities to better serve the "Z generation" consumer group, utilizing data-driven strategies for product development and sales[12]. IP Derivatives and Sales Channels - The IP derivatives business has experienced rapid growth, with 30 stores established across key cities, and non-store sales channels now account for 20% of this business[11]. - The company has launched its IP trendy art product platform "Wujiang," which has seen strong sales since its debut in May 2022[11]. - The IP derivative business revenue surged by 254.1% year-on-year, driven by the expansion of offline stores and online sales channels[19]. - The number of QQfamily offline stores reached 30, with significant foot traffic, including over 11,000 visitors on the opening day of the Wuhan store[19]. Financial Position and Cash Flow - Cash and cash equivalents decreased by 74.7% to approximately RMB 180.8 million as of June 30, 2022, from approximately RMB 714.8 million as of December 31, 2021[40]. - Total borrowings as of June 30, 2022, were approximately RMB 1,051.4 million, down from RMB 1,350.4 million as of December 31, 2021[41]. - The current ratio as of June 30, 2022, was 1.97, compared to 2.42 as of December 31, 2021[41]. - The debt ratio as of June 30, 2022, was 34.6%, a slight improvement from 36.3% as of December 31, 2021[42]. - The total capital expenditure for the six months ended June 30, 2022, was approximately RMB 108.3 million, down from RMB 185.8 million for the same period in 2021[44]. - The company reported a cash flow from operating activities increased to RMB 2,466 thousand for the six months ended June 30, 2022, compared to RMB 1,462 thousand for the same period in 2021, reflecting a growth of approximately 68.5%[90]. - The company’s financing activities resulted in a net cash outflow of RMB 212,733 thousand for the six months ended June 30, 2022, compared to RMB 195,939 thousand in the previous year[90]. Shareholder and Governance Information - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of governance to protect shareholder interests[56]. - No interim dividend was recommended for the six months ended June 30, 2022, consistent with the previous year[58]. - The audit committee, consisting of four members, reviewed the consolidated interim results for the six months ended June 30, 2022, ensuring compliance with accounting standards[59]. - The company repurchased a total of 8,795,200 shares from April to June 2022, with a total cost of HKD 33,983,355.52[61]. - As of June 30, 2022, the company had a total of 1,420,330,345 shares issued, with major shareholders holding significant stakes[65]. Employee and Management Information - As of June 30, 2022, the group had 1,081 full-time employees, a slight decrease from 1,113 employees as of December 31, 2021[46]. - The company granted a total of 1,300,000 restricted share units to participants outside of the board and senior management during the six months ended June 30, 2022[82]. - The remuneration for key management personnel was RMB 3,030,000 for the six months ended June 30, 2022, slightly up from RMB 2,945,000 in the same period of 2021, reflecting an increase of about 3%[170]. Risk Management and Compliance - The group has not reported any significant changes in risk management policies as of June 30, 2022[96]. - The company has a diversified financial risk management strategy, addressing market, credit, and liquidity risks[96]. - The company adheres to international financial reporting standards in its financial disclosures[172].

Financial Performance - Total revenue for 2021 was RMB 2,637,637, a decrease of 17.8% compared to RMB 3,212,118 in 2020[7] - Gross profit for 2021 was RMB 1,103,341, representing a gross margin of approximately 41.8%[7] - Adjusted net profit for 2021 was RMB 42,201, a significant decline from RMB 162,253 in 2020[7] - The company reported a net loss of RMB 155,930 for 2021, compared to a net loss of RMB 564,996 in 2020[7] - The annual net loss decreased by 72.4% from RMB 565.0 million for the year ended December 31, 2020, to RMB 155.9 million for the year ended December 31, 2021, with adjusted annual profit at RMB 42.2 million[38] - Adjusted annual profit for 2021 was RMB 42.201 million, down from RMB 162.253 million in 2020, indicating a decline of about 74.0%[42] - The company's EBITDA for 2021 was RMB 186.585 million, compared to a negative EBITDA of RMB 225.668 million in 2020, marking a turnaround[42] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 6,610,940, a decrease from RMB 6,752,841 in 2020[8] - Total liabilities for 2021 were RMB 2,401,698, down from RMB 3,037,000 in 2020[8] - The total equity increased to RMB 4,209,242 in 2021 from RMB 3,715,841 in 2020, indicating a stronger financial position[8] - Total cash and cash equivalents decreased by 2.8% to approximately RMB 714.8 million as of December 31, 2021, down from RMB 735.6 million in 2020[43] - Total borrowings as of December 31, 2021, were approximately RMB 1,350.4 million, a decrease of about 13.1% from RMB 1,553.7 million in 2020[43] - The current ratio improved to 2.42 as of December 31, 2021, compared to 1.53 in 2020, indicating better short-term financial health[45] - The company's debt ratio decreased to 36.3% as of December 31, 2021, down from 45.0% in 2020, reflecting an ongoing optimization of capital structure[46] Revenue Sources - Game revenue contributed 88.3% of total revenue in 2021, amounting to RMB 2,297.9 million, down from RMB 2,805.6 million in 2020[26] - The company's total revenue decreased by 17.9% year-on-year in 2021 due to the gradual termination of products not aligned with its gaming business strategy[11] - Revenue from the experience retail business surged by 463.1% to RMB 36.6 million in 2021, compared to RMB 6.5 million in 2020[28] User Engagement - The average monthly active users decreased from 138.0 million in 2020 to 128.0 million in 2021, primarily due to the termination of non-strategic gaming products[12] - The average monthly paying users decreased from 5.9 million in 2020 to 5.5 million in 2021, with average revenue per paying user dropping from RMB 38.0 to RMB 34.2[12] Research and Development - In 2021, the company's total R&D expenditure was RMB 325.2 million, with the R&D expense ratio increasing from 10.1% in 2020 to 12.3% in 2021[11] - The actual net amount used for R&D to further expand the company's self-developed game portfolio was RMB 25.50 million as of December 31, 2021, with RMB 184.50 million remaining unused[55] Strategic Initiatives - The company is focusing on new product development and market expansion strategies to drive future growth[6] - Management indicated plans for potential mergers and acquisitions to enhance market presence and capabilities[6] - The company aims to strengthen cooperation with leading IPs and accelerate product and store layout in the new year[10] Corporate Governance - The company is committed to maintaining high standards of corporate governance, as detailed in the annual report[157] - The board includes members with diverse academic backgrounds, such as degrees from prestigious institutions like Tsinghua University and the University of Texas, contributing to a well-rounded leadership team[163][164] - The company has established a governance framework that aligns with best practices, ensuring compliance and transparency in its operations[167] Shareholder Information - The company did not recommend a final dividend for the year ended December 31, 2021, consistent with the previous year[69] - The total number of shares issued as of December 31, 2021, is 1,387,475,615[93] - The company completed a placement of 72,280,000 shares at a price of HKD 5.92 per share on December 13, 2021, increasing the total issued share capital to 1,387,475,615 shares[106] Social Responsibility - The company donated RMB 1 million to aid disaster relief efforts in Henan and Shanxi provinces in 2021, showcasing its commitment to corporate social responsibility[22] - The revenue from underage users accounted for only 0.07% of the company's total game revenue as of December 31, 2021, reflecting a commitment to responsible gaming practices[22] Market Conditions - Future guidance suggests a cautious outlook due to market conditions, with an emphasis on cost management and operational efficiency[6] - The company faces various risks related to its gaming business and regulatory environment in China, which may impact future operations[65]