Financial Performance - In 2024, the company's revenue decreased by 19.5% to approximately RMB 1,657.7 million from RMB 2,059.4 million in 2023[10] - Gross profit fell by 25.4% to RMB 918.6 million, with a gross margin of 55.4% compared to 59.8% in the previous year[10] - Net profit decreased by 40.7% to RMB 430.7 million from RMB 725.9 million in 2023, resulting in a net profit margin of 26.0%[10] - The adjusted net profit, excluding share-based payments, declined by 38.5% to RMB 456.2 million from RMB 742.2 million in 2023[10] - Revenue decreased from approximately RMB 2.1 billion in 2023 to approximately RMB 1.7 billion in 2024, a decline of approximately 19.5%[23] - Net profit decreased from approximately RMB 725.9 million in 2023 to approximately RMB 430.7 million in 2024, a decline of approximately 40.7%[23] - Adjusted net profit (excluding share-based payments) decreased from approximately RMB 742.2 million in 2023 to approximately RMB 456.2 million in 2024, a decline of approximately 38.5%[23] - Revenue from the sale of virtual goods was approximately RMB 1.58 billion, down 19.8% from approximately RMB 1.96 billion in the previous year[28] - The company's revenue from in-game information services was approximately RMB 830.5 million, a decrease of 14.3% from approximately RMB 968.8 million in the previous year[28] - The gross profit for the fiscal year ending December 31, 2024, was approximately RMB 918.6 million, down 25.4% from approximately RMB 1.23 billion in the previous year, with a gross margin of 55.4%[31] User Engagement - The flagship product "Finger Sichuan Mahjong" ranked third in the iOS desktop game sales chart in China during 2024[16] - The company launched new game features and events, enhancing user engagement and experience[16] - Monthly active users decreased from 25,065 in 2023 to 23,636 in 2024, a decline of approximately 5.7%[22] - Daily active users decreased from 4,347 in 2023 to 4,316 in 2024, a decline of approximately 0.7%[22] - Monthly paying users for virtual items decreased from 553 in 2023 to 502 in 2024, a decline of approximately 9.2%[22] Assets and Liabilities - The total assets increased to RMB 2,879.5 million in 2024 from RMB 2,640.5 million in 2023[9] - Total liabilities slightly decreased to RMB 316.8 million in 2024 from RMB 320.5 million in 2023[9] - The total cash and bank balances decreased from approximately RMB 1.9 billion as of December 31, 2023, to approximately RMB 1.8 billion as of December 31, 2024[43] - Current assets as of December 31, 2024, were approximately RMB 2.4 billion, with cash and bank balances of about RMB 1.8 billion and financial assets held for trading of approximately RMB 404.6 million[43] - The current ratio increased to 8.8 as of December 31, 2024, compared to 7.5 as of December 31, 2023[43] Strategic Focus - The company is focusing on self-research innovation and enhancing operational capabilities while expanding into overseas markets[14] - The company is actively exploring new business areas, with positive user feedback on its casual game "Fishing Master"[16] - The company plans to continue expanding into overseas markets while deepening its focus on domestic market innovation and product quality[19] - The company plans to focus on self-research and innovation to enhance user experience and actively learn the latest AI technologies to accelerate the AI transformation of the entire development and release process[27] - The company aims to solidify its position in the domestic innovative chess market while actively expanding into overseas markets to promote Chinese culture[27] Expenses and Income - Sales and distribution expenses decreased by 11.2% to approximately RMB 148.0 million for the fiscal year ending December 31, 2024, compared to approximately RMB 166.7 million in the previous year[34] - Research and development expenses decreased by 9.9% to approximately RMB 126.6 million for the fiscal year ending December 31, 2024, compared to approximately RMB 140.5 million in the previous year[36] - Other income increased by 9.4% to approximately RMB 95.7 million for the fiscal year ending December 31, 2024, compared to approximately RMB 87.5 million in the previous year, mainly due to increased bank interest income[33] Dividends - The board declared a final dividend of HKD 0.15 per share for the fiscal year ending December 31, 2024, totaling approximately HKD 154.9 million[19] - The board proposed a final dividend of HKD 0.15 per share for the year ended December 31, 2024, totaling approximately HKD 154.9 million, subject to shareholder approval[53] Compliance and Governance - The company has integrated real-name authentication systems and anti-addiction prompts in its games to comply with regulatory requirements[24] - The company has confirmed compliance with the non-competition agreements by its controlling shareholders as of December 31, 2024[81] - The company is focused on maintaining compliance with applicable laws and regulations in its operations[169] - The board has the authority to amend the company's articles of association, reflecting a proactive governance approach[166] Shareholder Agreements and Equity - The company has established a framework to protect its interests in the event of shareholder death or divorce, ensuring continuity[171] - The spouses of major shareholders have committed to not claiming any shares in the company, ensuring stability in ownership[168] - Recent equity transfers have resulted in major shareholders' spouses holding significant stakes, with 99% of Tianchan owned by Xie Yingying, the spouse of Ye Sheng[172] - The company has engaged in strategic equity transfers to optimize ownership structures among key stakeholders[172] - The shareholders waive their preemptive rights during enforcement of the pledge[199] Employee Relations - The group had approximately 494 employees as of December 31, 2024, a decrease from 537 employees as of December 31, 2023[145] - The group has maintained good working relationships with employees, with no significant labor disputes occurring during the fiscal year ending December 31, 2024[146] - The group participates in various government-managed employee social security plans, including housing, pension, medical, maternity, and unemployment insurance[145] - The group’s employee compensation policy is determined by the board based on employees' strengths, qualifications, and overall market conditions[145]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased by 19.5% to RMB 1,657.7 million from RMB 2,059.4 million in 2023[5] - Gross profit fell by 25.4% to RMB 918.6 million, with a gross margin of 55.4%, down from 59.8% in the previous year[5] - Net profit for the year was RMB 430.7 million, representing a decline of 40.7% compared to RMB 725.9 million in 2023[5] - Total revenue for the year ended December 31, 2024, was approximately RMB 1.7 billion, a decrease of about 19.5% compared to approximately RMB 2.1 billion for the year ended December 31, 2023[22] - Revenue from virtual goods sales was approximately RMB 1.58 billion, down 19.8% from approximately RMB 1.96 billion in the previous year[22] - Revenue from in-game information services was approximately RMB 830.5 million, a decrease of 14.3% from approximately RMB 968.8 million in 2023[22] - Revenue from chess games decreased by approximately 22.6% to about RMB 1.55 billion, while revenue from casual and other games increased by approximately 95.8% to about RMB 105.9 million[23] - The adjusted net profit, excluding share-based payments, decreased by 38.5% to RMB 456.2 million from RMB 742.2 million in 2023[5] - The basic earnings per share decreased to RMB 0.4269 for the year ended December 31, 2024, from RMB 0.7238 in 2023[49] - The proposed final dividend for 2024 is HKD 0.15 per share, a decrease from HKD 0.23 per share in 2023, totaling HKD 154,851 thousand[90] User Engagement - Monthly active users decreased to 23.6 million from 25.1 million, while daily active users slightly declined to 4.3 million from 4.3 million[13] - The number of monthly paying users for virtual items dropped to 502, down from 553, with ARPPU decreasing to RMB 256 from RMB 304[13] Research and Development - The company plans to focus on self-research and innovation to enhance user experience and actively explore AI technology integration in game development[17] - Research and development expenses decreased by 9.9% to approximately RMB 126.6 million, mainly due to a reduction in R&D personnel and salaries[33] - The company’s research and development costs decreased to RMB 3,425 thousand in 2024 from RMB 5,787 thousand in 2023, a reduction of 40.8%[86] Compliance and Regulations - The company has implemented strict compliance measures in game operations to protect user rights and ensure regulatory adherence[16] - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and presented in Renminbi (RMB) thousands[57] - The group has not applied the newly issued and revised Hong Kong Financial Reporting Standards that are not yet effective, but plans to adopt them when they come into effect[63] Assets and Liabilities - The total cash and bank balance decreased from approximately RMB 1.9 billion as of December 31, 2023, to approximately RMB 1.8 billion as of December 31, 2024, due to the allocation of funds to fixed deposits with a maturity of over one year[40] - As of December 31, 2024, the current assets amounted to approximately RMB 2.4 billion, including cash and bank balances of approximately RMB 1.8 billion and financial assets held for trading of approximately RMB 404.6 million[40] - The total assets less current liabilities amounted to RMB 2.6 billion as of December 31, 2024, compared to RMB 2.4 billion as of December 31, 2023[52] Shareholder Information - The company has adopted a dividend policy without a preset payout ratio, allowing flexibility based on financial conditions and operational needs[116] - The annual general meeting is scheduled for June 5, 2025, to discuss the proposed final dividend and other matters[118] Other Financial Metrics - Other income increased by 9.4% to approximately RMB 95.7 million, primarily due to increased bank interest income[29] - The total amortization of capitalized contract costs for the year was RMB 446.2 million in 2024, down from RMB 594.5 million in 2023, reflecting a decrease of approximately 25%[102] - Trade receivables decreased from RMB 171.4 million in 2023 to RMB 106.5 million in 2024, a reduction of approximately 37.9%[97] - Cash and cash equivalents decreased from RMB 687.1 million in 2023 to RMB 425.7 million in 2024, a decline of approximately 38.1%[105]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 Zengame Technology Holding Limited 禪遊科技控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2660） 有關2023年中報、2023年年報及2024年中報 之補充公告 茲提述禪遊科技控股有限公司（「本公司」）於2023年9月15日刊發截至2023年6月 30日止六個月的中期報告（「2023年中報」）、於2024年4月29日刊發本公司截至 2023年12月31日止年度的年度報告（「2023年年報」），以及於2024年9月12日刊發 本公司截至2024年6月30日止六個月的中期報告（「2024年中報」）。除文義另有 所指外，本公告所用詞彙與2023年中報、2023年年報及2024年中報所界定者具 有相同涵義。 本公司謹此澄清： – 1 – 1. 購股權計劃項下可供發行的股份總數應為「95,137,000」股股份，佔2023年中 報日期已發行股份總數約「9.24」 ...

Zengame Technology Holding Limited 禪遊科技控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號：2660 6 目錄 | --- | --- | |--------------------------|-------| | | | | 公司資料 | 2 | | 財務摘要 | 4 | | 管理層討論與分析 | 5 | | 企業管治及其他資料 | 12 | | 獨立審閱報告 | 24 | | 中期簡明綜合損益表 | 25 | | 中期簡明綜合全面收益表 | 26 | | 中期簡明綜合財務狀況表 | 27 | | 中期簡明綜合權益變動表 | 28 | | 中期簡明綜合現金流量表 | 30 | | 中期簡明綜合財務資料附註 | 32 | | 釋義 | 52 | 公司資料 獨立非執行董事 金書匯先生 毛中華先生 陽翼先生 審核委員會 金書匯先生（主席） 毛中華先生 註冊辦事處 陽翼先生 薪酬委員會 陽翼先生（主席） 叶升先生 毛中華先生 總部及中國主要營業地點 提名委員會 叶升先生（主席） 毛中華先生 陽翼先生 公司秘書（附註） 香港主要營業地點 香港 授權代表（附註） 九龍 新蒲 ...

Financial Performance - For the six months ended June 30, 2024, the company's revenue decreased by 8.2% to RMB 934.3 million from RMB 1,017.8 million for the same period in 2023[3]. - Gross profit fell by 22.5% to RMB 492.9 million, with a gross margin of 52.8%, down from 62.5% in the previous year[3]. - Net profit for the period decreased by 23.4% to RMB 309.8 million, compared to RMB 404.3 million in the prior year[3]. - Total revenue for the six months ended June 30, 2024, was approximately RMB 934.3 million, a decrease of 8.2% compared to RMB 1,017.8 million for the same period in 2023[12]. - Revenue from virtual goods sales was approximately RMB 894.4 million, down 7.2% from RMB 963.9 million in the previous year[12]. - Revenue from in-game information services decreased by 26.0% to approximately RMB 39.9 million from RMB 53.9 million[12]. - Adjusted net profit, excluding share-based compensation, was approximately RMB 324.7 million, down 21.4% from RMB 413.2 million[24]. - The gross profit for the same period was RMB 492.9 million, down 22.4% from RMB 635.7 million in 2023[30]. - The net profit for the six months ended June 30, 2024, was RMB 309.8 million, a decrease of 23.3% from RMB 404.3 million in 2023[33]. - The group reported a pre-tax profit from continuing operations of RMB 264,142 thousand for the six months ended June 30, 2024, compared to RMB 278,109 thousand for the same period in 2023[51]. User Metrics - Monthly active users increased slightly to 25,207 from 25,068 year-over-year, while daily active users rose to 4,468 from 4,404[7]. - The number of monthly paying users for virtual items decreased to 525 from 575, with ARPPU declining to RMB 271 from RMB 289[7]. - The number of paying users for board games decreased, contributing to a revenue drop of approximately 10.4% in this segment[13]. - Other game revenue increased by 114.2% due to growth in casual game income[12]. Future Plans and Strategies - The company plans to focus on developing long-cycle premium games and enhancing user experience in the second half of 2024[9]. - There will be an increased emphasis on talent development and innovative incentive mechanisms to strengthen management[9]. - The company aims to expand its overseas market presence as a future growth engine[9]. - Investment in peer companies will be increased to enhance R&D capabilities and synergies[9]. - The company is committed to embracing cutting-edge industry technologies to empower high-quality development of its core business[9]. Financial Position - As of June 30, 2024, the group's total cash and bank balances decreased from approximately RMB 1.9 billion on December 31, 2023, to approximately RMB 1.7 billion[26]. - The current ratio as of June 30, 2024, was 5.1, down from 7.5 on December 31, 2023[26]. - The total assets as of June 30, 2024, amounted to RMB 2.4 billion, an increase from RMB 2.3 billion on December 31, 2023[35]. - The total liabilities as of June 30, 2024, were RMB 61.7 million, compared to RMB 30.4 million on December 31, 2023[35]. - The capital expenditure for the six months ended June 30, 2024, was approximately RMB 11.2 million, primarily for investment and purchase of office premises[27]. - Trade receivables as of June 30, 2024, total RMB 115,753,000, down from RMB 168,691,000 as of December 31, 2023, representing a decrease of about 31.4%[57]. - The company's trade payables as of June 30, 2024, amount to RMB 14,477,000, a decrease from RMB 17,174,000 as of December 31, 2023, indicating a reduction of approximately 15.7%[59]. - The company's financial assets measured at fair value amounted to RMB 258,469,000 as of June 30, 2024, compared to RMB 15,521,000 as of December 31, 2023[58]. Governance and Compliance - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2024, confirming compliance with applicable accounting principles and standards[67]. - The company has adopted corporate governance practices in line with the Stock Exchange's guidelines, maintaining high standards of governance[64]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting[67]. - The company did not buy back or redeem any of its listed securities during the six months ended June 30, 2024[68]. - The company has not held any treasury shares as of June 30, 2024[68]. Dividends and Share Capital - The company does not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[54]. - The board proposed a final dividend of HKD 0.23 per share for the year ended December 31, 2023, which was approved by shareholders and will be paid on July 4, 2024[63]. - The company has issued 1,031,788,687 ordinary shares as of June 30, 2024, compared to 1,030,604,937 shares in 2023, reflecting a slight increase in share capital[60]. - Basic earnings per share for the six months ended June 30, 2024, is RMB 0.307, down from RMB 0.404 for the same period in 2023, indicating a decline of about 24%[55]. - The weighted average number of ordinary shares issued for the six months ended June 30, 2024, is 1,030,450,741, compared to 1,023,353,065 for the same period in 2023, showing an increase of approximately 0.3%[55]. Employee Relations - As of June 30, 2024, the group had approximately 501 employees, a decrease from 537 employees as of December 31, 2023[62]. - There were no significant labor disputes reported within the six months ended June 30, 2024, indicating good employee relations[62].

Financial Performance - Total revenue for 2023 reached RMB 2,059,383 thousand, representing a year-on-year increase of 16.5% from RMB 1,767,456 thousand in 2022[12]. - Net profit for 2023 was RMB 725,919 thousand, up 6.7% from RMB 680,256 thousand in 2022[14]. - Adjusted net profit (excluding share-based payments) increased to RMB 742,184 thousand, a rise of 6.8% compared to RMB 694,975 thousand in 2022[14]. - The company's gross profit for 2023 was RMB 1,231,358 thousand, reflecting an 8.2% increase from RMB 1,137,984 thousand in 2022[14]. - The earnings per share for 2023 was RMB 0.72, an increase of 5.9% from RMB 0.68 in 2022[14]. - Total revenue rose from approximately RMB 1.8 billion in 2022 to about RMB 2.1 billion in 2023, reflecting a growth of around 16.5%[22]. - The company's net profit increased from approximately RMB 680.3 million in 2022 to about RMB 725.9 million in 2023, a growth of approximately 6.7%[22]. Revenue Breakdown - The company's revenue from board games increased from RMB 1,474.9 million in 2022 to RMB 1,864.4 million in 2023, a growth of approximately 26.4%[21]. - Revenue from virtual items reached approximately RMB 1.96 billion in 2023, up from about RMB 1.54 billion in 2022, marking an increase of approximately 27.3%[22]. - The revenue from in-game information services decreased by 57.1%, amounting to approximately RMB 96.9 million, down from approximately RMB 225.6 million in the previous year[28]. User Engagement - The user base for the gaming industry in China reached 668 million, with a year-on-year growth of 0.61%[16]. - Monthly active users decreased to 25,065 in 2023 from 35,967 in 2022, while daily active users fell to 4,347 from 5,810[21]. - The number of monthly paying users for virtual items dropped to 553 in 2023 from 1,015 in 2022[21]. - The ARPPU (Average Revenue Per Paying User) for virtual items increased from RMB 133 in 2022 to RMB 304 in 2023[21]. Operational Costs - Total sales costs rose to approximately RMB 828.0 million, an increase of 31.5% from approximately RMB 629.5 million in the previous year[29]. - Administrative expenses increased by 17.8% to approximately RMB 103.6 million, primarily due to higher office rental costs and administrative personnel salaries[34]. - Research and development expenses rose by 11.8% to approximately RMB 140.5 million, mainly due to an increase in the number of R&D personnel and their salaries[35]. Strategic Initiatives - The company is focused on enhancing game quality and expanding into overseas markets while adhering to compliance and operational standards[16]. - The company emphasized innovation in game development and user experience enhancement, focusing on automation and AIGC technology to improve operational efficiency[20]. - The company plans to focus on product quality improvement and content innovation in 2024, alongside enhancing talent development systems and exploring suitable investment opportunities[25]. Shareholder Information - The company declared a final dividend of HKD 0.23 per share, totaling approximately HKD 237.0 million for the fiscal year ending December 31, 2023[18]. - As of December 31, 2023, the company had distributable reserves of RMB 584 million[57]. - The company has issued a total of 62,561,080 restricted share units, representing approximately 6.07% of the total shares issued as of that date[73]. Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[161]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its affairs[190]. - The independent auditor confirmed that transactions under the Zenyou Shenzhen framework agreement were approved by the board and were conducted in accordance with the relevant provisions[155]. Compliance and Regulatory Matters - The company implemented a real-name authentication system and anti-addiction measures in its games to comply with regulatory requirements[24]. - The company has complied with the disclosure requirements of the Listing Rules regarding related party transactions[112]. - The company has received a waiver from the Stock Exchange regarding strict compliance with Listing Rules Chapter 14A for transactions under the Zenyou Shenzhen framework agreement[153]. Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[165]. - New product launches are expected to contribute an additional $20 million in revenue in the next fiscal year[166]. - The company has set a performance guidance of 20% revenue growth for the next fiscal year[169].

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 2,059,383,000, representing a year-on-year increase of 16.5% from RMB 1,767,456,000 in 2022[2] - Gross profit for the same period was RMB 1,231,358,000, with a gross margin of 59.8%, down from 64.4% in the previous year[2] - The company's net profit for the year was RMB 725,919,000, a 6.7% increase from RMB 680,256,000 in 2022[2] - Total revenue for the year ended December 31, 2023, was approximately RMB 2.1 billion, an increase of about 16.5% from approximately RMB 1.8 billion for the year ended December 31, 2022[12] - The net profit for the year ended December 31, 2023, was approximately RMB 725.9 million, a 6.7% increase from RMB 680.3 million in the previous year[23] - Basic earnings per share for 2023 was RMB 72.38, compared to RMB 68.40 in 2022, reflecting a growth in profitability[28] - The adjusted net profit, excluding share-based compensation, was approximately RMB 742.2 million, up 6.8% from approximately RMB 695.0 million in the previous year[24] User Engagement - The number of monthly active users decreased to 25,065,000 from 35,967,000, while daily active users fell to 4,347,000 from 5,810,000[6] - The average revenue per paying user (ARPPU) for virtual items increased significantly from RMB 133 to RMB 304, indicating improved user monetization[6] - The flagship product, "Finger Sichuan Mahjong," remained popular, consistently ranking in the top five of the iOS best-selling games in China[6] - The company has 53 self-developed games and 7 third-party games as of December 31, 2023, with 45 being board games and 15 other casual games[6] Revenue Sources - Revenue from the sale of virtual items reached approximately RMB 1,960,000,000, up 27.3% from RMB 1,540,000,000 in the previous year[7] - Revenue from self-developed games reached RMB 1,950,257 thousand, up 27.5% from RMB 1,531,283 thousand in the previous year[44] - The revenue from in-game information services decreased by 57.1% to approximately RMB 96.9 million, down from approximately RMB 225.6 million in the previous year[12] - The group’s total revenue from in-game information services decreased to RMB 96,882 thousand from RMB 225,609 thousand in 2022, a decline of 57.0%[44] Expenses and Costs - Total sales costs rose by approximately 31.5% to RMB 828.0 million, primarily due to increased channel costs from higher virtual goods sales[13] - Administrative expenses increased by 17.8% to approximately RMB 103.6 million, mainly due to higher office rental and personnel costs[18] - Research and development expenses rose by 11.8% to approximately RMB 140.5 million, attributed to an increase in the number of R&D personnel and their salaries[19] - The total cost of employee benefits, excluding directors and senior management, was RMB 185,997 thousand, compared to RMB 167,876 thousand in 2022, representing an increase of 10.8%[48] - Total employee compensation expenses for the year ended December 31, 2023, were approximately RMB 255.8 million, a 5.4% increase from RMB 242.7 million in 2022[73] Financial Health - As of December 31, 2023, the company's cash and bank balances increased to approximately RMB 1.9 billion from about RMB 1.1 billion at the end of 2022[24] - As of December 31, 2023, the company had no borrowings, compared to RMB 13.5 million in 2022, resulting in a debt-to-equity ratio of 0% in 2023, down from 0.8% in 2022[25] - The company's total equity increased to RMB 2,319,974 thousand in 2023 from RMB 1,765,760 thousand in 2022, reflecting strong financial health[32] - The total assets less current liabilities amounted to RMB 2,350,366 thousand in 2023, compared to RMB 1,787,959 thousand in 2022[31] Investments and Future Plans - The company plans to focus on enhancing R&D capabilities and product quality, while also increasing investment in overseas markets in 2024[9] - The company is actively pursuing suitable investment opportunities to enhance synergies with invested enterprises[9] - The company has no major investment or capital asset plans for the future, indicating a conservative approach to capital allocation[26] Governance and Compliance - The audit committee confirmed compliance with applicable accounting principles and standards for the year ended December 31, 2023[79] - The group has adopted new and revised Hong Kong Financial Reporting Standards for the current financial year, with no significant impact on the financial statements[38] - The group will apply the revised Hong Kong Financial Reporting Standards once they become effective, with no immediate impact anticipated[40] - The company operates under the Hong Kong Financial Reporting Standards[84] Shareholder Information - Proposed final dividend per share for 2023 is HKD 0.23, an increase from HKD 0.21 in 2022, reflecting a growth of 9.5%[51] - The proposed final dividend for the year ended December 31, 2023, is HKD 0.23 per share, up from HKD 0.21 per share in 2022, totaling approximately HKD 237.0 million[74] - The number of issued and fully paid ordinary shares increased to 1,030,604,937 as of December 31, 2023, from 1,027,731,687 in 2022[71] Employee Relations - The company has maintained a good working relationship with employees, with no significant labor disputes reported during the year[73] - The company had approximately 537 employees as of December 31, 2023, an increase from 524 employees in 2022, reflecting a growth of 2.5%[73]

Revenue and Profit Growth - Revenue increased by 64.2% year-on-year to RMB 1,017.8 million in the first half of 2023[7] - Net profit rose by 70.6% year-on-year to RMB 404.3 million in the first half of 2023[7] - Adjusted net profit (excluding share-based compensation) grew by 73.3% year-on-year to RMB 413.2 million in the first half of 2023[7] - Total revenue for the six months ended June 30, 2023, was RMB 1,017.8 million, a 64.2% increase compared to RMB 619.8 million in the same period in 2022[17] - Net profit for the six months ended June 30, 2023, increased by 70.6% to RMB 404.3 million, driven by higher revenue from virtual item sales[28] - Adjusted net profit (excluding share-based compensation) increased by 73.3% to RMB 413.2 million for the six months ended June 30, 2023[29] - Revenue for the six months ended June 30, 2023, increased to RMB 1,017.834 million, up from RMB 619.786 million in the same period in 2022[67] - Net profit for the six months ended June 30, 2023, was RMB 404.261 million, up from RMB 236.905 million in the same period in 2022[66] - The company's profit attributable to ordinary equity holders of the parent for the six months ended June 30, 2023, was RMB 404,845,000, compared to RMB 237,010,000 for the same period in 2022, representing a significant increase[95] User Metrics and Engagement - Monthly active users (MAU) decreased to 25,068 in the first half of 2023 from 38,707 in the same period last year[10] - Daily active users (DAU) dropped to 4,404 in the first half of 2023 from 6,288 in the same period last year[10] - Monthly paying users for virtual items declined to 575 in the first half of 2023 from 1,065 in the same period last year[10] - Average revenue per paying user (ARPPU) for virtual items surged to RMB 289 in the first half of 2023 from RMB 82 in the same period last year[10] Game Revenue Breakdown - Revenue from chess games increased by 104.3% year-on-year to RMB 923.2 million in the first half of 2023[10] - Revenue from virtual item sales grew by 100.7% year-on-year to RMB 963.9 million in the first half of 2023[11] - Revenue from virtual item sales increased by 100.7% to RMB 963.9 million, driven by higher ARPPU in chess games[17] - Chess game revenue grew by 104.3% to RMB 923.2 million, accounting for 90.7% of total revenue[16] - Card game revenue decreased by 52.6% to RMB 76.3 million, representing 7.5% of total revenue[16] - Revenue from self-developed games increased to RMB 960,029 thousand in 2023, up from RMB 477,900 thousand in 2022, representing a significant growth[81] - Revenue from game information services decreased to RMB 53,911 thousand in 2023 from RMB 139,553 thousand in 2022[81] Expenses and Costs - Gross profit increased by 59.1% to RMB 635.7 million, with a slight decline in gross margin from 64.5% to 62.5%[19] - Sales and distribution expenses decreased by 10.8% to RMB 73.4 million, primarily due to reduced promotion and advertising costs[22] - R&D expenses increased by 47.7% to RMB 73.8 million, driven by higher headcount and salaries for R&D personnel[24] - R&D costs for the six months ended June 30, 2023, increased to RMB 73.840 million, compared to RMB 49.983 million in the same period in 2022[67] - Administrative expenses for the six months ended June 30, 2023, were RMB 60.690 million, up from RMB 37.124 million in the same period in 2022[67] - Service fees charged by distribution platforms and payment providers increased to RMB 278,109 thousand in 2023 from RMB 157,614 thousand in 2022[89] - Current tax expenses for the period amounted to RMB 76,097 thousand in 2023, compared to RMB 26,547 thousand in 2022[92] - Deferred tax benefits were RMB 18,442 thousand in 2023, compared to RMB 9,129 thousand in 2022[92] Financial Position and Assets - Bank balances and cash increased to approximately RMB 1.4 billion as of June 30, 2023, up from RMB 1.1 billion as of December 31, 2022, due to increased operating profits[31] - Current assets as of June 30, 2023, were approximately RMB 1,934.6 million, including cash and cash equivalents of RMB 1,413.0 million, trade receivables of RMB 179.3 million, and financial assets at fair value of RMB 253.2 million[32] - Total assets increased to RMB 1,991,510 thousand as of June 30, 2023, compared to RMB 1,765,760 thousand at the end of 2022[70] - Cash and cash equivalents rose significantly to RMB 1,209,311 thousand, up from RMB 977,230 thousand at the end of 2022[70] - Investments in associates grew substantially to RMB 25,426 thousand, compared to RMB 7,003 thousand at the end of 2022[70] - Current assets increased to RMB 1,934,605 thousand, up from RMB 1,534,333 thousand at the end of 2022[70] - Current liabilities rose to RMB 464,499 thousand, compared to RMB 262,697 thousand at the end of 2022[70] - Non-current liabilities decreased to RMB 2,209 thousand, down from RMB 22,199 thousand at the end of 2022[70] - Equity attributable to owners of the parent company increased to RMB 2,005,086 thousand, up from RMB 1,778,774 thousand at the end of 2022[70] - Retained earnings grew to RMB 1,874,073 thousand, compared to RMB 1,668,865 thousand at the end of 2022[71] - Foreign exchange fluctuation reserve improved to RMB 6,626 thousand, up from a negative RMB 8,625 thousand at the end of 2022[71] - Share capital increased slightly to RMB 9,066 thousand, compared to RMB 9,044 thousand at the end of 2022[71] - Total equity as of June 30, 2023, was RMB 1,225,222 thousand[72] - Retained earnings amounted to RMB 1,089,252 thousand[72] - The company's total financial assets as of June 30, 2023, amounted to RMB 2,350,813 thousand, including RMB 253,209 thousand in financial assets at fair value through profit or loss[114] - The company's cash and cash equivalents as of June 30, 2023, stood at RMB 1,209,311 thousand[114] - The company's financial liabilities as of June 30, 2023, totaled RMB 36,853 thousand, including RMB 12,000 thousand in interest-bearing bank borrowings[114] - The company's trade receivables as of June 30, 2023, were RMB 179,332 thousand[114] - The company's total financial assets as of December 31, 2022, were RMB 1,968,379 thousand, with RMB 210,885 thousand in financial assets at fair value through profit or loss[117] - The company's cash and cash equivalents as of December 31, 2022, were RMB 977,230 thousand[117] - The company's financial liabilities as of December 31, 2022, totaled RMB 41,918 thousand, including RMB 13,500 thousand in interest-bearing bank borrowings[118] - The company's trade receivables as of December 31, 2022, were RMB 161,763 thousand[117] - The company's equity investments at fair value through other comprehensive income as of June 30, 2023, were RMB 15,560 thousand[114] Shareholder and Equity Information - Ye Sheng holds a 22.49% stake in the company through controlled entities and personally owns 0.63% of the shares[45] - Yang Min holds a 19.18% stake in the company through controlled entities and personally owns 0.63% of the shares[45] - Xiong Mi beneficially owns 0.30% of the company's shares[45] - Ye Sheng holds a 24.68% stake in Zenyou Shenzhen through controlled entities[47] - Yang Min holds a 21.65% stake in Zenyou Shenzhen through controlled entities[47] - Sky-zen Capital Limited holds 231,712,000 shares, representing 22.49% of the company's total shares[49] - J&L Y Limited holds 197,604,100 shares, representing 19.18% of the company's total shares[49] - D Fun Limited holds 160,143,300 shares, representing 15.55% of the company's total shares[49] - Playa Technology Limited holds 90,860,920 shares, representing 8.82% of the company's total shares[49] - The total number of issued shares as of June 30, 2023, is 1,030,124,687 shares[51] - A total of 62,561,080 restricted share units were granted under the Restricted Share Unit Plan, representing approximately 6.07% of the total issued shares as of June 30, 2023[53] - No restricted share units were available for grant under the Restricted Share Unit Plan as of June 30, 2023[53] - No restricted share units were available for exercise as of June 30, 2023[53] - The Restricted Share Unit Plan will no longer grant any restricted share units[55] - The company has 84,000,000 share options available for grant under the share option plan as of June 30, 2023, representing approximately 9.26% of the total issued shares[56] - A total of 13,833,750 share options were granted under the share option plan, with 2,393,000 exercised and 266,250 expired/cancelled during the six months ended June 30, 2023[57] - The weighted average closing price of shares immediately before the exercise date of share options was HK$3.83 per share[58] - The company has 23,311,200 shares available for grant under the share incentive plan as of June 30, 2023, representing approximately 2.75% of the total issued shares[59] - A total of 27,561,000 shares were granted to 104 selected participants under the share incentive plan as of June 30, 2023[60] - The fair value of share-based awards granted to 101 employees was HK$24.3 million, calculated based on the closing price of HK$1.32 per share at the grant date[61] - The company did not grant, exercise, lapse, or cancel any restricted shares during the six months ended June 30, 2023[62] - The weighted average number of shares that could be issued under the share option and share award plans during the six months ended June 30, 2023, was 0%[62] - The company's issued and fully paid ordinary shares as of June 30, 2023, were 1,030,124,687, compared to 1,027,731,687 as of December 31, 2022[106] - The company issued 2,393,000 shares upon the exercise of share options at a subscription price of HKD 1.29 per share, resulting in a total cash consideration of HKD 3,087,000 (approximately RMB 2,846,000)[108] Cash Flow and Financial Activities - Net cash flow from operating activities for the six months ended June 30, 2023, was RMB 358,055 thousand[73] - Profit before tax for the six months ended June 30, 2023, was RMB 461,916 thousand[73] - Interest income for the six months ended June 30, 2023, was RMB 25,828 thousand[73] - Depreciation of property and equipment for the six months ended June 30, 2023, was RMB 2,362 thousand[73] - Amortization of other intangible assets for the six months ended June 30, 2023, was RMB 452 thousand[73] - Share-based payment expenses for the six months ended June 30, 2023, were RMB 8,893 thousand[73] - Impairment of prepayments, deposits, and other receivables for the six months ended June 30, 2023, was RMB 10,000 thousand[73] - Increase in contract liabilities for the six months ended June 30, 2023, was RMB 24,840 thousand[73] - Net cash used in investing activities was RMB 140,956 thousand, compared to RMB 75,488 thousand in the same period last year[74] - Cash and cash equivalents increased by RMB 216,830 thousand, reaching RMB 1,209,311 thousand at the end of the period[74] - Interest received from investments was RMB 15,638 thousand, a significant increase from RMB 2,006 thousand in the previous year[74] - The company invested RMB 19,500 thousand in associates, compared to no investment in the same period last year[74] - Cash flow from financing activities showed a net outflow of RMB 269 thousand, a significant improvement from the net outflow of RMB 14,484 thousand in the previous year[74] Corporate Governance and Management - The company maintains a high standard of corporate governance, with the Board of Directors ensuring compliance with the Corporate Governance Code, except for a deviation under Code Provision C.2.1[37] - Li Chengwei was appointed as a senior management member of the group, responsible for the overall management and business planning of the chess and card game products department[41] - The group had approximately 520 employees as of June 30, 2023, with no major labor disputes reported during the first half of 2023[43] Taxation and Dividends - Income tax expenses increased by approximately RMB 40.2 million or 231.0% to RMB 57.7 million for the six months ended June 30, 2023, primarily due to reduced tax benefits and a 5% withholding tax rate for the Hong Kong subsidiary[27] - No interim dividend was recommended for the six months ended June 30, 2023, while a final dividend of HKD 0.21 per share for the year ended December 31, 2022, was approved and paid[36] - The company did not recommend any interim dividend for the six months ended June 30, 2023[93] Fair Value Measurements - The fair value of financial assets measured at fair value through profit or loss as of June 30, 2023, was RMB 253,209,000, compared to RMB 210,885,000 as of December 31, 2022[102] - The fair value of financial assets measured at fair value through profit or loss was RMB 253,209 thousand as of June 30, 2023, with no significant observable inputs (Level 2)[123] - The fair value of equity investments designated at fair value through other comprehensive income was RMB 15,560 thousand as of June 30, 2023, with significant unobservable inputs (Level 3)[123] - The total fair value of financial assets measured at fair value was RMB 268,769 thousand as of June 30, 2023[123] - The fair value of equity investments designated at fair value through other comprehensive income decreased by RMB 13,050 thousand due to losses recognized in other comprehensive income during the reporting period[126] - The discount rate for lack of marketability, a significant unobservable input for fair value measurement of non-listed equity investments, remained at 30% as of June 30, 2023[127] - The fair value of financial assets measured at fair value through profit or loss was RMB 210,885 thousand as of December 31, 2022, with significant observable inputs (Level 2)[124] - The fair value of equity investments designated at fair value through other comprehensive income was RMB 26,610 thousand as of December 31, 2022, with significant unobservable inputs (Level 3)[124] - The total fair value of financial assets measured at fair value was RMB 237,495 thousand as of December 31, 2022[124] Other Financial Information - Capital expenditure for the six months ended June 30, 2023, was approximately RMB 21.8 million, primarily used for game development and operations[33] - The company has no significant contingent liabilities or pledged assets as of June 30, 2023[33][34] - The company faces foreign exchange risk due to cash and bank balances denominated in USD and HKD, with no current hedging policy in place[35] - The company adopted new and revised Hong Kong Financial Reporting Standards, including amendments to HKAS 1, HKAS 8, and HKAS 12, with no material impact on financial statements[76][77] - The company operates primarily in the mobile game development and operation sector, with no further segmental information reported[78] - All revenue and long-term assets/capital expenditures are generated from and located in China, with no geographical segment information provided[79] - The total property and equipment as of June 30, 2023, had a net book value of RMB 7,817,000, compared to RMB 9,833,000 as of January 1, 2023[96] - Trade receivables within 90 days as of June 30, 2023, amounted to RMB 175,096,000, compared to RMB 155,924,000 as of December 31, 2022[101] - Trade payables within 3 months as of June 30, 2023, amounted to RMB 17,866,000, compared to RMB 16,490,000 as of December 31,

Revenue Growth - Revenue for the six months ended June 30, 2023, increased to RMB 1,017.8 million, a growth of 64.2% compared to RMB 619.8 million for the same period in 2022[3] - The revenue from board games surged to RMB 923.2 million, marking an increase of approximately 104.3% from RMB 451.8 million in the same period last year[6] - Sales revenue from virtual items reached approximately RMB 963.9 million, a 100.7% increase from RMB 480.2 million year-over-year[7] - The company's total revenue for the six months ended June 30, 2023, was approximately RMB 1,017.8 million, an increase of about 64.2% compared to RMB 619.8 million for the same period in 2022[12] - Total revenue for the six months ended June 30, 2023, was RMB 1,017,834 thousand, a significant increase from RMB 619,786 thousand in the same period of 2022, representing a growth of approximately 64.3%[43] - Revenue from self-developed games reached RMB 960,029 thousand, compared to RMB 477,900 thousand in the previous year, indicating an increase of about 100.5%[43] - Revenue from third-party games was RMB 3,894 thousand, up from RMB 2,333 thousand, showing a growth of approximately 67.0%[43] Profitability - The adjusted net profit for the same period rose to RMB 413.2 million, reflecting a 73.3% increase from RMB 238.5 million in the prior year[8] - The overall net profit margin improved to 39.7% for the six months ended June 30, 2023, compared to 38.2% in the same period of 2022[3] - Net profit for the six months ended June 30, 2023, was approximately RMB 404.3 million, representing a 70.6% increase from RMB 236.9 million in the same period of 2022[22] - The company's adjusted net profit, excluding share-based compensation, was approximately RMB 413.2 million, a 73.3% increase from RMB 238.5 million in the previous year[23] - The group's pre-tax profit from continuing operations for the six months ended June 30, 2023, was RMB 404,845,000, compared to RMB 237,010,000 for the same period in 2022, reflecting a growth of 70.8%[52] User Engagement - Monthly active users decreased to 25,068 from 38,707 year-over-year, while daily active users fell to 4,404 from 6,288[6] - The average revenue per paying user (ARPPU) for virtual items increased significantly to RMB 289, up from RMB 82 in the previous year[6] - The company reported a significant increase in monthly active users, reaching 1.5 million, representing a 25% year-over-year growth[68] - Daily active users have increased to 500,000, showing a 30% rise from the last quarter[68] - The average revenue per paying user (ARPPU) for the quarter was $15, indicating a 10% increase compared to the previous quarter[67] Expenses and Costs - The company's gross profit increased by 59.1% to approximately RMB 635.7 million, with a slight decrease in gross margin from 64.5% to 62.5%[14] - Research and development expenses rose by 47.7% to approximately RMB 73.8 million, primarily due to an increase in the number of R&D personnel and their salaries[19] - Sales and distribution expenses decreased by 10.8% to approximately RMB 73.4 million, attributed to reduced promotional and advertising expenses[17] - Administrative expenses increased by 63.5% to approximately RMB 60.7 million, primarily due to higher salaries for administrative staff[18] - The cost of sales increased by 73.6% to approximately RMB 382.1 million, driven by overall revenue growth and increased new media costs[13] Future Strategies - The company plans to strengthen its competitive advantage in the board game sector and enhance research and operational management levels in the second half of 2023[9] - Future strategies include continuous investment in product iteration and user experience, as well as active expansion into overseas gaming markets[9] - The company plans to launch two new games in Q4 2023, aiming to expand its market presence and attract more users[69] - The management provided a revenue guidance of $50 million for the next quarter, reflecting a 20% growth expectation[69] - The company is exploring potential acquisitions to further expand its market share in the gaming industry[69] Financial Position - The total cash and bank balance increased from approximately RMB 1.1 billion as of December 31, 2022, to approximately RMB 1.4 billion as of June 30, 2023, due to increased cash surplus from operating profits[25] - As of June 30, 2023, the current ratio was 4.2, down from 5.8 as of December 31, 2022[25] - As of June 30, 2023, the debt-to-equity ratio was 0.6%, down from 0.8% as of December 31, 2022[26] - The company reported a total current asset value of approximately RMB 1,934.6 million as of June 30, 2023, compared to RMB 1,534.3 million as of December 31, 2022[34] - Trade receivables amounted to RMB 179,332,000, an increase from RMB 161,763,000 as of December 31, 2022, representing an increase of approximately 10.8%[54] Compliance and Governance - The company has implemented a real-name authentication system and anti-addiction measures in compliance with regulations for protecting minors[8] - The company’s board of directors confirmed compliance with corporate governance codes during the reporting period[62] - The company has adopted new accounting standards effective January 1, 2023, but these changes did not impact the interim financial data[39] - There were no significant changes in accounting policies that would affect the financial performance or position of the company[39] - The company has not disclosed any information regarding the impact of international tax reforms on its financial statements, as it does not fall under the scope of the relevant legislation[39]

Financial Performance - Total revenue for Zengame Technology increased by 19.9% to approximately RMB 1,767.5 million in 2022 from RMB 1,473.9 million in 2021[9]. - Net profit rose by 36.0% to approximately RMB 680.3 million in 2022 compared to RMB 500.3 million in 2021[11]. - Adjusted net profit (excluding share-based compensation) increased by 38.2% to approximately RMB 695.0 million in 2022 from RMB 503.0 million in 2021[11]. - Gross profit margin improved to 64.4% in 2022 from 61.4% in 2021, reflecting a 3.0 percentage point increase[9]. - Earnings per share rose by 38.8% to RMB 0.68 in 2022 from RMB 0.49 in 2021[9]. - Revenue from virtual goods sales reached approximately RMB 1,541.8 million, up 47.8% from RMB 1,043.0 million in 2021[22]. - Revenue from self-developed games reached RMB 926.2 million in 2022, with a gross margin of 60.5%, compared to RMB 556.9 million and 53.8% in 2021[28]. - Other income rose by 76.8% from approximately RMB 32.1 million in 2021 to approximately RMB 56.7 million in 2022, primarily due to increased income from interest-bearing assets and government subsidies[29]. - The sales cost for the year ended December 31, 2022, was approximately RMB 629.5 million, an increase of about 10.7% from RMB 568.6 million in 2021[26]. User Engagement - Monthly active users decreased to 35,967 thousand in 2022 from 43,237 thousand in 2021, representing a decline of approximately 16%[16]. - Daily active users decreased to 5,810 thousand in 2022 from 6,890 thousand in 2021, reflecting a decline of about 16%[16]. - Monthly paying users for virtual items increased to 1,015 thousand in 2022 from 951 thousand in 2021, showing an increase of approximately 7%[16]. - Average revenue per paying user (ARPPU) for virtual items rose significantly from RMB 88 in 2021 to RMB 133 in 2022, an increase of approximately 51%[16]. - User retention rates improved to 85%, up from 80% in the previous year[164]. Strategic Focus - The flagship product "Finger Sichuan Mahjong" achieved the highest ranking in the iOS best-selling list for card games in China[11]. - The company focused on enhancing user retention and in-game payment rates through product innovation and marketing strategies[11]. - Zengame Technology plans to reduce investment in hyper-casual games and allocate more resources to the innovation and optimization of key card games[11]. - The company plans to continue focusing on classic card and casual games in both domestic and overseas markets, enhancing product development and innovation capabilities[12]. - The group plans to enhance R&D capabilities and actively explore overseas gaming markets in 2023[20]. Compliance and Regulations - The company has implemented real-name authentication and anti-addiction measures in response to new regulations aimed at protecting minors[12]. - The company is committed to ensuring compliance with relevant laws and regulations across all game products, enhancing user privacy protection measures[12]. - The group has not encountered any regulatory interference regarding the adoption of the 指尖互动娱乐架构合约, allowing the financial performance of 指尖互动娱乐 to be consolidated into the group's financial results[133]. - The company has not encountered any regulatory interference in adopting the Zenyou Shenzhen framework agreements[112]. Corporate Governance - The board of directors includes three executive directors and three independent non-executive directors, with changes in the board noted since the mid-year report[59][60]. - The company has adopted a dividend policy without a preset payout ratio, allowing the board to recommend dividends based on financial conditions and operational needs[47]. - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific written terms of reference[191]. - The board of directors is responsible for leading and monitoring the company, ensuring effective internal controls and risk management systems[187]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their status[185]. Shareholder Information - The company proposed a final dividend of HKD 0.21 per share for the year ended December 31, 2022, totaling HKD 215.9 million[47]. - As of December 31, 2022, the company had distributable reserves of RMB 59.1 million and total borrowings of approximately RMB 13.5 million, an increase from RMB 9.1 million as of December 31, 2021[52]. - The company has not entered into any related party transactions that require disclosure under the Listing Rules for the year ended December 31, 2022[108]. - The company has maintained at least 25% of its issued share capital held by the public as required by listing rules[157]. Employee Information - Total employee compensation for the year ended December 31, 2022, was approximately RMB 242.7 million, an increase of 41.1% from RMB 172.0 million in 2021[106]. - The average number of employees increased by 28.6% in 2022 compared to 2021, reaching approximately 524 employees[106]. - The company has maintained good working relationships with employees, with no significant labor disputes reported during the year[106]. Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[172]. - New product launches are expected to contribute an additional $20 million in revenue in the next fiscal year[171]. - The company is investing $5 million in research and development for new technologies aimed at enhancing user experience[167]. - A strategic acquisition of a smaller tech firm is anticipated to close by Q3 2023, expected to add $10 million in annual revenue[166]. - The company has set a performance guidance of 10% revenue growth for the upcoming fiscal year[168].