Financial Performance - The total revenue for the year ended December 31, 2024, reached approximately RMB 776 million, representing a significant increase compared to the previous year[11]. - Gross profit increased by 20.7% to approximately RMB 416 million, up from about RMB 345 million[11]. - Net profit rose by 13.3% to approximately RMB 84.15 million, compared to about RMB 74.24 million for the year ended December 31, 2023[11]. - The company's revenue for the year reached RMB 776 million, representing a year-on-year growth of 22.5%[18]. - Gross profit recorded RMB 416 million, an increase of 20.7% compared to RMB 345 million in the same period last year[18]. - Net profit increased from approximately RMB 74.24 million to approximately RMB 84.15 million, a year-on-year increase of 13.3%[18]. - Gross profit margin decreased to 53.6% in 2024 from 54.4% in 2023, while net profit margin fell to 10.8% from 11.7%[27]. Research and Development - The company’s R&D expenditure increased by 22.4% to approximately RMB 1.337 billion, up from about RMB 1.092 billion in the previous year[11]. - Research and development expenditure increased to RMB 133.7 million by the end of 2024, reflecting the company's commitment to AI technology[19]. - Research and development expenses for 2024 were RMB 133.7 million, maintaining a consistent 17.2% of total revenue[26]. - Research and development expenses increased by approximately RMB 24.5 million or 22.4% to about RMB 133.7 million for the year ending December 31, 2024, due to an increase in R&D personnel[37]. Market Expansion and User Growth - The core game "Best Eleven - Champion Club" maintained stable active user and revenue scales, contributing to user retention and acquisition[9]. - The newly launched game "MLB Peak Showdown" achieved first place in the free download chart on the Apple Store in mainland China within three days of its release[10]. - The company successfully expanded into multiple potential regions, resulting in significant profit growth and a solid foundation for long-term development[9]. - The company actively explored the Asian market to further expand its user base, achieving over 2 million new users for the game "Baseball Master" with a revenue increase of over 20 times compared to 2023[9]. - The game "NBA Peak Showdown" topped the Apple App Store free download chart shortly after its launch, indicating strong market reception[18]. Technology and Innovation - The application of AIGC technology, particularly Arena4D, has significantly improved player experience by enhancing the realism of player movements and actions[12]. - The company is set to introduce AI agents in games to enhance realism and user experience, in line with the "AI+" initiative proposed in the 2024 government work report[14]. - The company has established a full-chain technology layout for "AIGC + games," enhancing content production and user experience[20]. Operational Strategy - The company plans to optimize operations in Hong Kong, South Korea, and Japan to enhance revenue scale in 2025[23]. - The company aims to strengthen its market share in North America through localized operations and enhanced user experiences[23]. - The company plans to launch the derivative game "Best 11 - Champion Club" mini-game version 1.0 in 2025, aiming for additional profit growth[13]. - The company is preparing to test the derivative mini-game version 1.0 in the first half of 2025[23]. Financial Management and Governance - The company achieved a return on equity of 22.3% in both 2024 and 2023, indicating stable profitability[28]. - The company has no bank borrowings as of December 31, 2024, consistent with the previous year[88]. - The company has complied with all relevant laws and regulations without any significant violations during the year[76]. - The company has adopted a standard code for directors' securities trading, and all directors confirmed compliance for the year ending December 31, 2024[192]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective governance[193]. Shareholder Information - The total employee cost for the year ending December 31, 2024, was approximately RMB 199.4 million, an increase from RMB 144.6 million in 2023[52]. - The group had 491 full-time employees as of December 31, 2024, up from 412 in 2023[52]. - The company did not declare any final dividend for the year ended December 31, 2024, compared to a dividend of RMB 0.1882 per share in 2023[82]. - The company has a share option plan, a 2023 share incentive plan, and an executive shareholding incentive plan in place[93]. - The company has no distributable reserves available for dividend distribution as of December 31, 2024, the same as in 2023[85]. Contractual Arrangements and Compliance - The company has established a contractual arrangement to gain actual control and receive the majority of economic benefits from the operations of its Chinese entities, including Wangchen Technology and Moge Technology[148]. - The exclusive business cooperation agreements stipulate that the foreign-owned enterprise will provide services such as technical support and software development, with service fees amounting to 100% of the combined profits of Wangchen Technology and Moge Technology, after deducting any accumulated losses and operating costs from the previous fiscal year[152]. - The company is closely monitoring the implementation and compliance of the contractual arrangements to mitigate associated risks[161]. - The independent auditor has verified that the disclosed continuing connected transactions also constitute related party transactions[168]. Global Offering and Fund Utilization - The company issued 12,420,000 shares in a global offering at a price of HKD 6.5 per share, raising approximately HKD 11.0 million net of related expenses[179]. - 30% of the net proceeds from the global offering, amounting to HKD 3,289,000, was allocated to renewing existing intellectual property licenses and acquiring additional licenses for mobile sports games[179]. - 35% of the net proceeds, amounting to HKD 3,838,000, was allocated to enhancing marketing efforts in China and overseas markets[179]. - 25% of the net proceeds, amounting to HKD 2,741,000, was allocated to strengthening the talent pool and R&D capabilities[179].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 315,379,000, a decrease of 11.0% compared to RMB 354,399,000 in the same period of 2023[4] - Gross profit decreased by 13.9% to RMB 171,403,000 from RMB 199,168,000 year-on-year[4] - Adjusted net profit for the period was RMB 25,539,000, down 35.5% from RMB 39,625,000 in the previous year[4] - Revenue decreased by approximately RMB 39.0 million or 11.0% to approximately RMB 315.4 million for the six months ended June 30, 2024, compared to RMB 354.4 million for the same period in 2023[7] - Net profit declined by approximately RMB 13.8 million or 35.1% to approximately RMB 25.5 million for the six months ended June 30, 2024[7] - Gross profit decreased by approximately RMB 27.8 million or 13.9% to approximately RMB 171.4 million for the six months ended June 30, 2024, with a gross margin decline from 56.2% to 54.3%[12] - Other income decreased by approximately RMB 2.7 million or 38.7% to approximately RMB 4.3 million, primarily due to a reduction in government grants by approximately RMB 3.7 million or 94.3%[14] - Adjusted net profit for the six months ended June 30, 2024, was approximately RMB 25.5 million, down from RMB 39.6 million in the same period of 2023[22] - The company reported a net profit of RMB 25,539,000 for the six months ended June 30, 2024, compared to RMB 39,351,000 in the prior year, indicating a decrease of approximately 35%[57] - Basic earnings per share for the period was RMB 0.19, down from RMB 0.29 in the previous year[57] Research and Development - Research and development expenses increased by 17.0% to RMB 58,899,000 compared to RMB 50,324,000 in the prior year[4] - Research and development expenses increased by approximately RMB 8.6 million to approximately RMB 58.9 million due to the hiring of additional R&D personnel[7] - Research and development expenses increased by approximately RMB 8.6 million or 17.0% to approximately RMB 58.9 million, mainly due to an increase in employee benefits and salaries for R&D personnel[17] - The company plans to further enhance its talent pool and R&D capabilities, allocating 25% of the net proceeds for this purpose[37] Game Development and Partnerships - The company has established long-term partnerships with international sports leagues and top football clubs, enhancing its game offerings[5] - The game "Best Eleven - Champion Club" celebrated its fourth anniversary, introducing new gameplay features that significantly increased monthly revenue[5] - The core game "Best Club" has become highly competitive in the mobile football game market in mainland China, with a substantial increase in paying users[5] - The company signed licensing agreements with the German national team and UEFA Champions League semi-final teams, enhancing game content and brand recognition[5] - The company aims to continue strengthening collaborations with renowned athletes to boost active and paying user numbers[5] - The launch of the baseball game "Baseball Master" in mainland China in July 2024 marks it as the only licensed baseball game available in the region[8] - The basketball game "NBA Peak Showdown" was officially launched in mainland China in August 2024, utilizing upgraded motion capture and AI technology[8] - The game "Code: Fishing Master" is expected to enter the testing phase in Q4 2024, with a potential release in the first half of 2025[8] Financial Position and Cash Flow - Cash and cash equivalents amounted to approximately RMB 309.2 million as of June 30, 2024[22] - Current assets decreased by approximately RMB 49.1 million to approximately RMB 219.5 million as of June 30, 2024, with a current ratio of approximately 2.3 times[23] - The debt-to-equity ratio remained stable at 0.01 times as of June 30, 2024[24] - The group had a total employee cost of approximately RMB 81.7 million for the six months ended June 30, 2024, compared to RMB 70.4 million for the same period in 2023, representing an increase of about 18.5%[32] - As of June 30, 2024, the group employed 443 full-time employees, up from 412 as of December 31, 2023, indicating a growth of approximately 7.5% in workforce[32] - The total amount of net proceeds utilized as of June 30, 2024, was consistent with the proposed allocation outlined in the prospectus[38] - The company reported a profit of RMB 39,313 thousand for the six months ended June 30, 2024, compared to a profit of RMB 25,546 thousand in the previous period[60] - The company’s reserves decreased to RMB 304,733 thousand from RMB 332,428 thousand, indicating a reduction in retained earnings and reserves[60] - The company reported trade payables of RMB 114,562,000 as of June 30, 2024, a decrease from RMB 123,880,000 at the end of 2023[88] Shareholder Information and Governance - The company does not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous period, as it focuses on capital expenditures for developing new games and promoting existing ones[35] - The company has adopted the corporate governance code as per the listing rules since its listing date, ensuring effective accountability[40] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2024[41] - The board believes that the dual role of Mr. Jia as both chairman and CEO is in the best interest of the company due to his extensive experience in the online gaming industry[40] - The company has established a strong internal control system and risk management processes as part of its governance practices[41] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[34] - The company has not disclosed any changes in director information since the last annual report[50] - The company is under the control of several major shareholders, with significant stakes held by entities like Crystal Pleasant and Suzhou Fude Bo[48] - The company has a structured ownership with various entities controlling significant percentages of shares, indicating a concentrated ownership structure[49] Investment Activities - The company invested RMB 28,732,000 in intangible assets during the period, up from RMB 24,418,000 in the same period last year, indicating ongoing investment in technology and development[62] - The company made an investment of RMB 24,000,000 in an associate company, marking a new strategic investment initiative[62] - The company repurchased shares amounting to RMB 27,201,000 during the period, reflecting a commitment to returning value to shareholders[62] - The company’s investment in financial assets at fair value through profit or loss was RMB 14,254,000, a decrease from RMB 74,302,000 in the previous year, indicating a shift in investment strategy[62] Taxation and Financial Liabilities - The income tax expenses decreased by approximately RMB 3.9 million or 98.7% to approximately RMB 50,000, mainly due to a reduction in income tax from subsidiaries[21] - The effective corporate income tax rate for the company’s operations in mainland China was 25%, with certain subsidiaries benefiting from reduced rates of 15% and 12.5%[76] - The company did not recognize any deferred tax liabilities related to withholding tax for the six months ended June 30, 2024, as there were no distributions to foreign investors[77] - The fair value of financial liabilities measured at amortized cost is considered to be similar to their carrying amounts as of June 30, 2024, and December 31, 2023[93]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 315,379,000, a decrease of 11.0% compared to RMB 354,399,000 in the same period of 2023[6] - Gross profit for the same period was RMB 171,403,000, down 13.9% from RMB 199,168,000 year-on-year[6] - Adjusted net profit for the six months was RMB 25,539,000, representing a decline of 35.5% from RMB 39,625,000 in the previous year[6] - Other income decreased by 38.7% to RMB 4,315,000 from RMB 7,042,000 year-on-year[6] - Revenue decreased by approximately RMB 39.0 million or 11.0% to approximately RMB 315.4 million for the six months ended June 30, 2024, compared to RMB 354.4 million for the same period in 2023[9] - Net profit declined by approximately RMB 13.8 million or 35.1% to approximately RMB 25.5 million year-on-year[9] - Gross profit decreased by approximately RMB 27.8 million or 13.9% to about RMB 171.4 million for the six months ended June 30, 2024, with a gross margin decline from 56.2% to 54.3%[14] - The company reported a net profit of RMB 25,539,000 for the six months ended June 30, 2024, compared to RMB 39,351,000 in the prior year, indicating a decrease of approximately 35%[59] - Basic earnings per share for the period was RMB 0.19, down from RMB 0.29 in the previous year[59] Research and Development - Research and development expenses increased by 17.0% to RMB 58,899,000, compared to RMB 50,324,000 in the prior year[6] - Research and development expenses increased by approximately RMB 8.6 million to about RMB 58.9 million due to hiring more R&D personnel[9] - Research and development expenses increased by approximately RMB 8.6 million or 17.0% to about RMB 58.9 million, mainly due to an increase in employee benefits and salaries for R&D personnel[19] Game Development and Market Strategy - The company has established long-term partnerships with international sports leagues and top football clubs, enhancing its game offerings[7] - The game "Best Eleven - Champion Club" celebrated its fourth anniversary, introducing new gameplay features that significantly boosted monthly revenue[7] - The core game "Best Club" has become highly competitive in the mobile football game market in mainland China, with a substantial increase in paying user numbers[7] - The company plans to continue collaborations with well-known football stars to further increase active and paying user scales[7] - The company launched the baseball game "Baseball Master" in North America, ranking as the second most popular MLB licensed game, with daily revenue exceeding $100,000 for the first time[8] - The basketball game "NBA Peak Showdown" received approval for launch in July 2024 and is expected to enhance player engagement and expand the user base[8] - The company plans to expand into overseas markets, targeting Japan, Italy, the UK, and France, with strategic activities planned for "Best XI - Champion Club" in the domestic market[10] - The upcoming game "Code Name: Fishing Master" is expected to enter the testing phase in Q4 2024, with a potential release in the first half of 2025[10] Financial Position and Cash Flow - Cash and cash equivalents amounted to approximately RMB 309.2 million as of June 30, 2024[24] - Current assets decreased by approximately RMB 49.1 million to about RMB 219.5 million, with a current ratio of approximately 2.3 times[25] - The debt-to-equity ratio remained stable at 0.01 times as of June 30, 2024[26] - The group had a total employee cost of approximately RMB 81.7 million for the six months ended June 30, 2024, compared to RMB 70.4 million for the same period in 2023, reflecting an increase of about 18.5%[34] - As of June 30, 2024, the group employed 443 full-time employees, up from 412 as of December 31, 2023, indicating a growth of approximately 7.5% in workforce size[34] - The company reported a payment of RMB 27,201,000 for share repurchases, reflecting a commitment to returning value to shareholders[64] - The company reported a net increase in cash and cash equivalents of RMB 8,196,000, down from RMB 50,053,000 in the prior year, reflecting a tighter cash flow situation[64] - The total cash and cash equivalents at the end of the period reached RMB 309,212,000, compared to RMB 285,406,000 at the end of June 2023, showing a year-over-year increase of 8.3%[64] Shareholder Information and Governance - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous period, as capital expenditures are focused on developing new games and promoting existing ones[37] - The company has adopted the corporate governance code as per the listing rules since its listing date, ensuring effective accountability[42] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2024[43] - The independent auditor has conducted a review of the interim financial information in accordance with the relevant standards[44] - The company will continue to review its governance practices to maintain high standards[42] - The board believes that the current structure allows for effective management and operation despite deviations from certain governance codes[42] Investments and Acquisitions - The company invested RMB 28,732,000 in intangible assets during the period, up from RMB 24,418,000 in the same period last year, indicating ongoing investment in technology and development[64] - The company made an investment of RMB 24,000,000 in an associate company, marking a new strategic investment initiative[64] - The company invested RMB 24,000,000 in a private entity in mainland China, reflecting its strategy to expand its investment portfolio[86] Employee and Management Compensation - Total remuneration for key management personnel for the six months ended June 30, 2024, was RMB 2,828,000, down 16.4% from RMB 3,385,000 in the previous year[97] - The company adopted a share incentive plan on December 15, 2023, allowing for the purchase of up to 6,900,000 shares, representing 5% of the issued share capital[98] - No rewards were granted under the share incentive plan as of June 30, 2024, but the trustee purchased 6,752,000 shares at a total cost of HKD 29,914,000 (approximately RMB 27,201,000)[98] - The company plans to grant a total of 4,742,928 shares to 61 participants after June 30, 2024, under the share incentive plan[98]

Financial Performance - The total revenue for the year ended December 31, 2023, remained stable at approximately RMB 633.6 million, compared to the previous year[15]. - Gross profit increased by approximately 3.5% to about RMB 344.7 million, up from approximately RMB 333.1 million in the previous year[15]. - Net profit surged by approximately 451.2% to around RMB 74.2 million, with profit attributable to owners also increasing by 448.6% to RMB 74.2 million[15]. - For the fiscal year ended December 31, 2023, the total revenue of the company was approximately RMB 633.6 million, a slight decrease from RMB 637.9 million in 2022[51]. - The net profit for the year ended December 31, 2023, was RMB 74.2 million, significantly up from RMB 13.5 million in 2022, representing an increase of 450.4%[71]. - The gross profit margin improved to 54.4% in 2023 from 52.2% in 2022[73]. - Other income rose significantly by approximately RMB 8.9 million or 72.5% to RMB 21.3 million, primarily due to new government grants and interest income[100]. - The company reported a significant reduction in financial asset impairment losses, decreasing by about 86.7% to approximately RMB 0.2 million in 2023 from RMB 1.9 million in 2022[80]. - The company’s liquidity position improved, with a current ratio of 2.8 times compared to 1.3 times in the previous year[91]. - The company’s effective tax rate improved, with a tax credit of RMB 1.5 million compared to an expense of RMB 8.8 million in the previous year[87]. Expenses and Cost Management - Sales and marketing expenses decreased by approximately 25.2% to about RMB 129.5 million, while general and administrative expenses fell by approximately 18.6% to RMB 45.6 million[15]. - Sales and marketing expenses decreased by approximately RMB 43.7 million or 25.2% to RMB 129.5 million, attributed to improved customer acquisition efficiency[101]. - General and administrative expenses decreased by approximately RMB 10.4 million or 18.6% to RMB 45.6 million, mainly due to reduced listing expenses[101]. - The company experienced a reduction in revenue costs by approximately RMB 15.8 million or 5.2% to RMB 289.0 million, mainly due to lower commission rates from overseas platforms[97]. Game Development and Market Strategy - The company is developing three new competitive games, expected to launch in 2024 and the following one to two years, utilizing advanced technologies such as AI and real-time rendering[17]. - The new game "Baseball Master" is currently in online testing and small-scale operation in North America, marking the company's first competitive baseball game[20]. - The company plans to optimize its product matrix and profitability while enhancing customer acquisition efficiency and refined operations in the coming year[22]. - The game "Best Club" has successfully replaced "Football Master" and is expected to reach new revenue and profit peaks in Q1 2024[22]. - The North American version of "Baseball Master" is set for large-scale promotion in Q2 2024, with domestic version approval already obtained[22]. - The company aims to expand its overseas market presence with improved game quality and localized content for various regions, including Japan, Korea, and Taiwan, also targeting Q2 2024 for launches[22]. - The company has expanded its intellectual property portfolio by acquiring official licenses from Major League Baseball (MLB) and the Major League Baseball Players Association (MLBPA), launching the online test and small-scale operation of the new game "Baseball Master" in North America in mid-2023[29]. - The core game "Best Eleven - Champion Club" has undergone a comprehensive art upgrade and introduced various built-in casual games and superstar career modes, maintaining stable revenue despite a decrease in older games' earnings[34]. - The active user and paying user scale has significantly increased due to the signing of several well-known players from the top five leagues and domestic stars as game ambassadors for "Best Club," leveraging major football events for marketing[34]. - The company is developing three new games: "Code: Basketball Operation," "Code: Fishing Master," and "Code: Football Operation," expected to launch in 2024 and the following one to two years, utilizing advanced AI technology and realistic physics engines[37]. - The gaming industry trend is stable, with over 100 game licenses issued in the domestic market for four consecutive months, indicating a positive outlook for the company's core games in 2024[30]. Corporate Governance and Management - The company has a strong management team with over 24 years of experience in corporate finance and management, including roles in major firms like PwC and GE[135]. - The company is focused on expanding its market presence and has appointed independent directors with extensive experience in mergers and acquisitions, private equity, and strategic development[146]. - The R&D department is led by a vice president with experience in project management and engine development, previously working at Microsoft[147]. - The company has a qualified high-level talent recognized by the Shenzhen Human Resources Bureau since October 2018, indicating a commitment to attracting skilled professionals[130]. - The board includes members with significant financial and operational oversight experience, ensuring robust governance and strategic direction[140]. - The company has a diverse board with members holding advanced degrees in finance and management, contributing to informed strategic planning[143]. - The management team is committed to overseeing financial management, human resources, marketing, and business development, ensuring comprehensive operational oversight[138]. - The company has a history of engaging in significant investment and acquisition activities, reflecting its growth strategy and market expansion goals[146]. Shareholder and Dividend Information - The company declared a final dividend of RMB 0.1882 per share, totaling approximately RMB 25,971,050[47]. - The company reported a final dividend of RMB 0.1882 per share for the year ended December 31, 2023, totaling RMB 25,971,050, compared to no dividend in 2022[168]. - The company’s annual general meeting is scheduled for June 4, 2024, where the proposed final dividend will be subject to shareholder approval[168]. Risks and Challenges - The company has faced risks related to the inability to predict or adapt to new trends in the mobile gaming industry and the potential failure to renew licensing agreements with intellectual property holders[36]. - The management discussion and analysis section includes a fair review of the company's business using financial key performance indicators and outlines major risks and uncertainties faced by the company[157]. Corporate Social Responsibility - The company aims to create value for society and fulfill its corporate social responsibility through its existing business[158].

截至二零二三年十二月三十一日止年度的 年度業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 | --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 業績摘要 | | • | 毛利由截至二零二二年十二月三十一日止年度的約人民幣 333.1 百萬元增加約人民 幣 11.6 百萬元或 3.5% 至截至二零二三年十二月三十一日止年度的約人民幣 344.7 百 萬元。 | | • | 研發開支由截至二零二二年十二月三十一日止年度的約人民幣 87.0 百萬元增加約 人民幣 22.2 百萬元 ...

Revenue and Profitability - Revenue for the six months ended June 30, 2023, was approximately RMB 354.4 million, representing a 20.2% increase from RMB 294.8 million in the same period of 2022[5]. - The company reported a net profit of RMB 39.4 million for the period, a significant increase of 93.6% compared to RMB 20.3 million in the previous year[5]. - The adjusted net profit for the period was RMB 39.6 million, reflecting a 45.0% increase from RMB 27.3 million in the same period of 2022[5]. - Profit before tax for the period was RMB 43,320 thousand, reflecting an increase of 81.5% from RMB 23,877 thousand in 2022[115]. - The company reported a profit attributable to owners of RMB 39,313,000 for the six months ended June 30, 2023, compared to RMB 20,374,000 for the same period in 2022, representing an increase of approximately 93.1%[194]. Expenses and Costs - Gross profit increased by approximately RMB 50.3 million or 33.8% to RMB 199.2 million, with a gross margin rising from approximately 50.5% to 56.2%[26]. - Research and development expenses rose by approximately RMB 12.8 million or 34.2% to RMB 50.3 million, reflecting the company's commitment to enhancing game quality and development efficiency[5]. - The cost of revenue increased by approximately RMB 9.3 million or 6.4% to RMB 155.2 million, primarily due to increased licensing fees and employee costs related to new game operations[25]. - Sales and marketing expenses rose by approximately RMB 7.0 million or 9.5% to about RMB 80.5 million for the six months ended June 30, 2023, primarily due to increased advertising activities for the newly launched game "Best Club"[29]. - General and administrative expenses increased by approximately RMB 7.9 million or 45.1% to about RMB 25.3 million for the six months ended June 30, 2023, mainly due to higher employee salaries and bonuses[30]. Financial Position - As of June 30, 2023, cash and cash equivalents amounted to approximately RMB 285.4 million, an increase of approximately RMB 52.8 million from RMB 232.6 million as of December 31, 2022[36]. - The debt-to-equity ratio as of June 30, 2023, was 0.03 times, a significant decrease from 0.66 times as of December 31, 2022[38]. - The company had no bank borrowings as of June 30, 2023, consistent with the position as of December 31, 2022[37]. - The company's net current assets increased from approximately RMB 76.1 million as of December 31, 2022, to approximately RMB 225.4 million as of June 30, 2023, resulting in a current ratio of approximately 2.72[58]. - Total assets as of June 30, 2023, amounted to RMB 491,817 thousand, a significant increase from RMB 370,260 thousand at the end of 2022[117]. Shareholder Information - As of June 30, 2023, Mr. Jia holds 31,307,986 shares, representing approximately 22.69% of the company's equity[73]. - Mr. Huang holds 21,837,345 shares, representing approximately 15.82% of the company's equity[73]. - Mr. Li holds 3,654,323 shares, representing approximately 2.65% of the company's equity[73]. - The total number of share options available for grant under the share option scheme is 13,800,000 shares, equivalent to 10% of the issued shares as of the report date[84]. Government Assistance and Grants - The company received government subsidies amounting to RMB 4.7 million during the reporting period, which did not have any unmet conditions[148]. - Government grants received during the six months ended June 30, 2023, were RMB 3,928,000, up from RMB 2,706,000 in 2022, indicating a growth of 45%[167]. Future Plans and Strategies - The company plans to accelerate the application of artificial intelligence in game development and expand into the casual gaming sector with a more diverse product portfolio[20]. - The company plans to continue expanding its mobile gaming development and operations in China, focusing on innovative technology and new product launches[140]. - The company intends to strengthen its marketing efforts, allocating 35% of the net proceeds, equivalent to HKD 3.838 million, to actively promote its games in both China and overseas markets[68]. Compliance and Governance - The audit committee has discussed and reviewed the group's unaudited interim results for the six months ended June 30, 2023[94]. - The company has established an audit committee on December 21, 2022, consisting of three independent non-executive directors[93]. - The company has adopted the Listing Rules and the Corporate Governance Code, ensuring compliance and effective management[91]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 40,059,000, compared to RMB 11,835,000 for the same period in 2022, representing an increase of 238%[158]. - The net cash used in investing activities for the six months ended June 30, 2023, was RMB 54,065,000, compared to RMB 8,854,000 in 2022, indicating a significant increase in investment outflows[158]. - The company incurred capital expenditures of RMB 79,142,000 for the six months ended June 30, 2023, significantly higher than RMB 3,920,000 for the same period in 2022, indicating a substantial increase in investment[198].

I. Interim Results Announcement [Performance Highlights](index=1&type=section&id=1.1%20Performance%20Highlights) The company reported significant growth in revenue, gross profit, net profit, and profit attributable to owners for H1 2023 | Indicator | For the six months ended June 30, 2022 (RMB million) | For the six months ended June 30, 2023 (RMB million) | Increase (RMB million) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 294.8 | 354.4 | 59.6 | 20.2 | | Gross Profit | 148.9 | 199.2 | 50.3 | 33.8 | | Net Profit | 20.3 | 39.4 | 19.0 | 93.6 | | Profit Attributable to Owners of the Company | 20.4 | 39.3 | 18.9 | 93.0 | II. Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The company reported significant growth in revenue, gross profit, and net profit for the six months ended June 30, 2023 | Indicator | For the six months ended June 30, 2023 (RMB thousand) | For the six months ended June 30, 2022 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 354,399 | 294,775 | | Cost of Revenue | (155,231) | (145,910) | | Gross Profit | 199,168 | 148,865 | | Other (Losses)/Gains, Net | (3,751) | 1,034 | | Other Income | 7,042 | 3,594 | | Selling and Marketing Expenses | (80,455) | (73,445) | | General and Administrative Expenses | (25,330) | (17,461) | | Research and Development Expenses | (50,324) | (37,508) | | Impairment Losses under Expected Credit Loss Model, Net of Reversals | (647) | (1,772) | | Net Finance (Costs)/Income | (2,383) | 570 | | Profit Before Income Tax | 43,320 | 23,877 | | Income Tax Expense | (3,969) | (3,551) | | Profit for the Period | 39,351 | 20,326 | | Other Comprehensive Income for the Period | 4,716 | — | | Profit/(Loss) for the Period Attributable to Owners of the Company | 39,313 | 20,374 | | Non-controlling Interests | 38 | (48) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets grew to RMB 491.8 million, driven by intangible assets and cash, with total equity increasing significantly | Indicator | As at June 30, 2023 (RMB thousand) | As at December 31, 2022 (RMB thousand) | | :--- | :--- | :--- | | **ASSETS** | | | | Total Non-current Assets | 135,373 | 66,559 | | Total Current Assets | 356,444 | 303,701 | | **TOTAL ASSETS** | **491,817** | **370,260** | | **EQUITY AND LIABILITIES** | | | | Total Equity | 298,750 | 122,614 | | Total Non-current Liabilities | 62,028 | 20,024 | | Total Current Liabilities | 131,039 | 227,622 | | **TOTAL LIABILITIES** | **193,067** | **247,646** | | **TOTAL EQUITY AND LIABILITIES** | **491,817** | **370,260** | - Intangible assets increased from **RMB 39,674 thousand** as of December 31, 2022, to **RMB 100,136 thousand** as of June 30, 2023[10](index=10&type=chunk) - Cash and cash equivalents increased from **RMB 232,566 thousand** as of December 31, 2022, to **RMB 285,406 thousand** as of June 30, 2023[10](index=10&type=chunk) - Share capital increased from **RMB 8 thousand** as of December 31, 2022, to **RMB 1,186 thousand** as of June 30, 2023, and share premium increased from **RMB 0** to **RMB 130,891 thousand**[10](index=10&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased from RMB 122.6 million to RMB 298.8 million, primarily due to profit and new share issuance | Indicator | As at January 1, 2023 (RMB thousand) | Profit for the Period (RMB thousand) | Other Comprehensive Income for the Period (RMB thousand) | Issue of New Shares (RMB thousand) | As at June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Equity | 122,614 | 39,313 | 4,716 | 69,394 | 298,750 | - Profit for the period was **RMB 39,313 thousand**, and other comprehensive income was **RMB 4,716 thousand**[12](index=12&type=chunk) - The issuance of new shares generated **RMB 69,394 thousand**, and shares issued upon conversion of pre-IPO convertible bonds generated **RMB 69,393 thousand**[12](index=12&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=2.4%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow increased, financing inflow surged, and cash and cash equivalents reached RMB 285.4 million | Indicator | For the six months ended June 30, 2023 (RMB thousand) | For the six months ended June 30, 2022 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 40,059 | 11,835 | | Net Cash Used in Investing Activities | (54,065) | (8,854) | | Net Cash from/(Used in) Financing Activities | 64,059 | (4,265) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 50,053 | (1,284) | | Cash and Cash Equivalents at Beginning of Period | 232,566 | 188,410 | | Effect of Exchange Rate Changes | 2,787 | 1,367 | | Total Cash and Cash Equivalents at End of Period | 285,406 | 188,493 | - Net cash from operating activities increased by **238.5%** year-on-year, primarily due to increased profit[38](index=38&type=chunk) - Net cash from financing activities turned significantly positive, mainly due to proceeds from the issuance of shares of **RMB 69,394 thousand**[38](index=38&type=chunk) III. Notes to Condensed Consolidated Financial Statements [General Information and Basis of Presentation](index=8&type=section&id=3.1%20General%20Information%20and%20Basis%20of%20Presentation) The company listed on HKEX on January 16, 2023, with financial statements prepared under HKAS 34 and Listing Rules - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **January 16, 2023**[14](index=14&type=chunk) - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of Appendix 16 to the Listing Rules of the Stock Exchange[15](index=15&type=chunk) - The company is an investment holding company, and its subsidiaries are principally engaged in the development, publishing, and operation of mobile sports games in China[40](index=40&type=chunk) [Significant Accounting Policies](index=8&type=section&id=3.2%20Significant%20Accounting%20Policies) New and revised HKFRSs were applied for the first time this period, with no significant impact on the Group's financial performance - The Group first applied new and revised Hong Kong Financial Reporting Standards issued by the HKICPA during this interim period, including HKFRS 17 and amendments to HKAS 1, 8, and 12[17](index=17&type=chunk)[42](index=42&type=chunk) - The application of the new and revised HKFRSs had no significant impact on the financial position and performance of the Group for the current and prior periods and/or the disclosures set out in these condensed consolidated financial statements[43](index=43&type=chunk) [Revenue](index=9&type=section&id=3.3%20Revenue) Revenue primarily from web and mobile online games in China totaled RMB 354.4 million, a 20.2% year-on-year increase - The Group is primarily located in China, with most of its revenue derived from China, and no revenue from any other individual country accounted for **10%** or more

Corporate Governance - The company appointed PwC as its external auditor for the year ending December 31, 2022, with fees of RMB 2.3 million for audit services and RMB 0.1 million for non-audit services[28]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[9]. - The company has established a nomination committee to review the board's structure and diversity policies, with a meeting held on March 29, 2023, to assess the independence of non-executive directors[22][23]. - The internal control system is reviewed annually by the board, covering financial, operational, and compliance monitoring to ensure adequate resources and training for staff[32]. - The company emphasizes the importance of corporate governance and has implemented policies for human resources management, including ethics and legal compliance training[35]. - The board believes that the dual role of the chairman and CEO is beneficial for effective management, despite a deviation from the corporate governance code[11]. - The company has three independent non-executive directors, ensuring compliance with listing rules regarding board composition[15]. - The remuneration committee is responsible for reviewing and approving the compensation policies for directors and senior management, aligning with company performance[20][26]. - The company is committed to maintaining high standards of corporate governance and regularly reviews its governance policies and practices[12][36]. Environmental, Social, and Governance (ESG) Performance - The company has established an environmental, social, and governance (ESG) oversight committee to evaluate its ESG performance and report to the board[24]. - The company has implemented risk management policies to identify and assess major risks related to its business operations, ensuring that all employees are trained and responsible for managing risks[37]. - The company aims to maintain its greenhouse gas emissions density at or below the baseline established in 2022 by the end of 2023[85]. - The company has set a target of approximately 430 megawatt-hours for electricity consumption for each of the two years ending December 31, 2023, and achieved this target in 2022[93]. - The company has established a governance framework for ESG to ensure alignment with its business strategy for sustainable development[98]. - The ESG supervisory committee meets at least once a year to assess and manage the progress of key annual objectives approved by the board[74]. - The company has not been aware of any significant violations of environmental laws and regulations related to emissions and waste generation in 2022[82]. - The company encourages stakeholders to provide feedback on its ESG report and sustainability performance through various communication channels[79]. - The company is committed to enhancing its ESG performance by strengthening communication with stakeholders and incorporating their feedback into sustainability policies[97]. - The company has implemented measures to improve resource efficiency and reduce unnecessary resource usage in its operations[91]. - The company recognizes the increasing public and investor focus on environmental protection and corporate social responsibility, and has developed an environmental policy to minimize pollution and environmental damage[104]. - Total greenhouse gas emissions amounted to 208.73 tons of CO2 equivalent, with a density of 0.57 tons of CO2 equivalent per full-time employee[107]. - The total energy consumption was 366 MWh, with a density of 1.00 MWh per full-time employee[116]. - The company set a water consumption target of approximately 1,590 thousand liters for each of the two years ending December 31, 2023[118]. - The company aims to maintain the total density of non-hazardous waste generated in 2023 at or below the baseline established in 2022[112]. - The company has implemented measures to reduce paper waste, including minimizing unnecessary printing and copying[112]. - The company is committed to complying with local environmental laws and has established an environmental policy to mitigate negative impacts[114]. - The company has increased its office cleaning efforts due to the COVID-19 pandemic, leading to increased water usage in 2022[118]. - The company will regularly monitor climate-related trends, policies, and regulations to mitigate reputational risks associated with climate change compliance[124]. Employee Management and Training - As of December 31, 2022, the company employed 367 full-time employees, which will be used for calculating other density metrics[86]. - The company reported a total employee count of 370, with 76.49% being male and 23.51% female[148]. - 60.54% of employees are under 30 years old, while 39.46% are aged between 30 and 50[148]. - 99.19% of the workforce is full-time, indicating a strong commitment to stable employment[148]. - Employee turnover rates were reported at 20.85% for males and 11.49% for females[130]. - The management has adopted a climate change policy to assess and manage climate-related risks and opportunities[143]. - The company emphasizes a talent-driven approach, focusing on attracting and retaining skilled employees to maintain a competitive edge[146]. - Employee turnover rate for the group was approximately 18.65% during the reporting period[150]. - 32.86% of male employees and 41.38% of female employees received training, with an average training duration of 0.66 hours for males and 0.83 hours for females[156]. - The percentage of trained employees in the group is approximately 34.86%, with an average training time of 0.70 hours per employee[177]. - The percentage of junior staff who received training is 47.66%, with an average training time of 0.95 hours[177]. Compliance and Risk Management - The company has introduced a written policy for handling external communications related to regulatory investigations, appointing a contact person to ensure compliance[62]. - The company has implemented a process for approving related party transactions, requiring board approval before entering into any such transactions[62]. - The company provides regular training on anti-bribery and anti-corruption measures to employees in various departments[62]. - The company continues to monitor compliance with relevant laws and regulations, ensuring that its senior management team collaborates closely with employees[60]. - The company emphasizes timely, fair, accurate, and complete information disclosure to enable shareholders and the public to make informed decisions[39]. - The group emphasizes the importance of compliance with local and national laws to avoid corruption and bribery among its business partners and suppliers[162]. - The group conducts regular training seminars on compliance and anti-corruption to strengthen corporate governance[176]. - The company adheres to data privacy and protection laws, including limiting personal data collection and ensuring only authorized employees can access user data[196]. - The company maintains a strong anti-corruption culture, adhering to the highest standards of business ethics and complying with laws against bribery, extortion, fraud, and money laundering[200]. - No significant violations of anti-bribery, extortion, fraud, or money laundering laws were reported during the reporting period, and there were no concluded corruption lawsuits[200]. Product and Service Quality - The group maintains a stable user base supported by a robust network infrastructure, ensuring low-latency real-time interactions in its gaming products[166]. - No significant complaints regarding products and services were received during the reporting period, with customer satisfaction meeting expected targets[170]. - The group regularly launches game upgrades and updates to meet user demands and maintain a competitive edge in the mobile sports gaming industry[163]. - The group adheres to various laws and regulations regarding product safety, advertising, and consumer rights, with no significant violations reported during the reporting period[186]. - The group has implemented measures to monitor and restrict gaming behavior for users under 18 years old[191]. - The group actively collects user feedback through market research and discussions to assess market response and financial performance before game launches[188]. Supplier and Procurement Management - The group had a total of 74 suppliers, ensuring a transparent procurement process based on fair competition and objective evaluation criteria[160]. - The group has established a Supplier Code of Conduct to guide business partners and suppliers, ensuring compliance with ethical standards[181]. - The group collaborates with 36 suppliers in China and 38 overseas suppliers[182]. - The group is committed to integrating sustainability considerations into its business activities and prioritizes suppliers that use environmentally friendly products and services[163]. Cybersecurity and Data Protection - The group employs external cybersecurity service providers to enhance network infrastructure protection and respond to any detected issues[171]. - The company has developed cybersecurity systems to prevent distributed denial-of-service attacks and other malicious threats, implementing advanced firewall policies[193]. - The company emphasizes strict auditing of marketing and advertising strategies to prevent misleading content and ensure compliance with applicable laws[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Gala Technology Holding Limited 望 塵 科 技 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2458） 截至二零二二年十二月三十一日止年度的 年度業績公告 業績摘要 • 收益由截至二零二一年十二月三十一日止年度的約人民幣459.9百萬元增加約人民 幣178.0百萬元或38.7%至截至二零二二年十二月三十一日止年度的約人民幣637.9 百萬元。 • 毛利由截至二零二一年十二月三十一日止年度的約人民幣221.5百萬元增加約人民 幣111.6百萬元或50.4%至截至二零二二年十二月三十一日止年度的約人民幣333.1 百萬元。 • 上市開支由截至二零二一年十二月三十一日止年度的約人民幣15.9百萬元增加約 人民幣6.5百萬元或40.9%至截至二零二二年十二月三十一日止年度的約人民幣22.4 百萬元。 ...