Financial Performance - Revenue for the year ended December 31, 2022, was RMB 1,767,456,000, representing a year-on-year increase of 19.9% from RMB 1,473,958,000 in 2021[2] - Gross profit increased to RMB 1,137,984,000, with a gross margin of 64.4%, up from 61.4% in the previous year[2] - Net profit for the year was RMB 680,256,000, reflecting a 36.0% increase compared to RMB 500,343,000 in 2021[2] - Revenue from the sale of virtual items was approximately RMB 1.54 billion, representing a 47.8% increase from approximately RMB 1.00 billion in the previous year[11] - The adjusted net profit (excluding share-based payments) rose to RMB 694,975,000, a 38.2% increase from RMB 503,003,000 in 2021[2] - The company's gross profit increased by 25.7% to approximately RMB 1.10 billion, with a gross margin of 64.4%, up from 61.4% in the previous year[13] - The company's net profit for the year ended December 31, 2022, was approximately RMB 680.3 million, an increase of about 36.0% compared to RMB 500.3 million for the year ended December 31, 2021[22] - The adjusted net profit for the year ended December 31, 2022, was approximately RMB 695.0 million, reflecting a 38.2% increase from approximately RMB 503.0 million in the previous year[23] - The total income tax expense for the year was RMB 80,373,000 in 2022, down from RMB 98,493,000 in 2021, indicating a decrease of 18.4%[51] - The basic earnings attributable to equity holders of the parent for 2022 were RMB 680,783,000, up from RMB 500,343,000 in 2021, representing a growth of 36%[54] User Metrics - Monthly active users decreased to 35,967,000 from 43,237,000, while daily active users fell to 5,810,000 from 6,890,000[6] - The number of monthly paying users for virtual items rose to 1,015,000, up from 951,000, with ARPPU increasing from RMB 88 to RMB 133[6] - Cumulative registered players reached approximately 1.4 billion by December 31, 2022, up from 1.3 billion in the previous year[7] Revenue Sources - Revenue from board games increased by approximately 60.7%, from RMB 918,000,000 in 2021 to RMB 1,474,900,000 in 2022[6] - Revenue from self-developed games reached RMB 1,531,283 thousand in 2022, up from RMB 1,034,814 thousand in 2021, indicating a growth of about 47.9%[43] Expenses and Investments - Research and development expenses rose by 35.8% to approximately RMB 125.7 million, primarily due to an increase in the number of R&D personnel and their salaries[18] - Sales and distribution expenses increased by 17.4% to approximately RMB 206.3 million, mainly due to promotions for virtual items and increased sales personnel compensation[16] - The company’s administrative expenses increased by 35.8% to approximately RMB 88.0 million, attributed to increased office space and personnel costs[17] - The company plans to continue investing in R&D to enhance product development capabilities and innovation[9] Financial Position - Total cash and bank balances increased from approximately RMB 1 billion as of December 31, 2021, to approximately RMB 1.1 billion as of December 31, 2022, primarily due to increased cash reserves from operating profits[23] - Current assets as of December 31, 2022, were approximately RMB 1.5 billion, with current liabilities of approximately RMB 262.7 million, resulting in a current ratio of 5.8[24] - The company’s total assets less current liabilities amounted to RMB 1,787.96 million as of December 31, 2022, compared to RMB 1,250.37 million in 2021[32] - Non-current liabilities decreased from RMB 25,147 thousand in 2021 to RMB 22,199 thousand in 2022, a reduction of approximately 11.5%[33] - Net asset value increased significantly from RMB 1,225,222 thousand in 2021 to RMB 1,765,760 thousand in 2022, representing a growth of about 44%[33] - Total equity rose from RMB 1,225,222 thousand in 2021 to RMB 1,765,760 thousand in 2022, marking an increase of approximately 44%[33] Corporate Governance - The audit committee confirmed compliance with applicable accounting principles and standards for the fiscal year ending December 31, 2022[81] - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules Appendix 14, ensuring transparency and accountability to shareholders[78] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[80] - All directors confirmed adherence to the standard code of conduct for securities trading during the fiscal year ending December 31, 2022[79] - The company aims to maintain high standards of corporate governance through continuous review and monitoring of its practices[78] - The company has a dual leadership structure with the same individual serving as both Chairman and CEO, which is believed to enhance unified leadership[78] Shareholder Information - The proposed final dividend per ordinary share for 2022 is HKD 0.21, compared to HKD 0.15 in 2021, reflecting an increase of 40%[52] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.21 per share, totaling HKD 215.9 million, compared to HKD 0.15 per share in 2021[76] - The company had 1,027,731,687 shares issued and fully paid as of December 31, 2022, compared to 1,017,444,000 shares in 2021, reflecting an increase of 1.1%[72] Compliance and Reporting - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local accounting regulations[35] - The group adopted revised Hong Kong Financial Reporting Standards for the first time in the current financial year, which may impact the financial reporting practices[38] - The annual performance announcement and annual report for the fiscal year ending December 31, 2022, will be published on the Stock Exchange and the company's website[84] - The company reported no significant impact on its financial position or performance due to the adoption of new accounting standards effective from January 1, 2022[39] Employee Information - The total employee compensation for the year ended December 31, 2022, was RMB 242.7 million, a 41.1% increase from RMB 172.0 million in 2021[75] - The company had approximately 524 employees as of December 31, 2022, an increase from 490 employees in 2021[75]

Financial Performance - Revenue for the first half of 2022 reached RMB 619.8 million, a 39.5% increase from RMB 444.2 million in the same period of 2021[20] - Gross profit for the same period was RMB 399.6 million, reflecting a 39.4% increase from RMB 286.6 million year-on-year[20] - The net profit for the first half of 2022 was RMB 236.9 million, a 62.5% increase from RMB 145.7 million in the same period of 2021[20] - The company's total revenue for the six months ended June 30, 2022, was approximately RMB 619.8 million, an increase of about 39.5% from RMB 444.2 million for the same period in 2021[25] - The net profit for the six months ended June 30, 2022, rose to approximately RMB 236.9 million, reflecting a growth of about 62.5% from RMB 145.7 million in the same period of 2021[25] - Adjusted net profit (excluding share-based payments) increased to approximately RMB 238.5 million, up about 62.8% from RMB 146.4 million year-on-year[25] - Total comprehensive income for the period was RMB 239,049 thousand, compared to RMB 144,294 thousand in the previous year[80] - Basic and diluted earnings per share for the period were RMB 0.24, compared to RMB 0.14 in the same period of 2021[79] User Metrics - The number of cumulative registered players increased to 1,383,225, up from 1,203,373 in the previous year, representing a growth of approximately 14.9%[22] - Monthly active users decreased to 38,707 from 44,443, indicating a decline of about 13.0% year-on-year[22] - The average revenue per paying user (ARPPU) rose to RMB 82, an increase of 26.2% from RMB 65 in the same period of 2021[22] Revenue Sources - The revenue from virtual goods sales was approximately RMB 480.2 million, a significant increase of 112.0% compared to RMB 226.5 million in the previous year[24] - Revenue from self-developed games reached RMB 477,900 thousand, up from RMB 221,068 thousand in the previous year, indicating an increase of about 116%[96] - Revenue from third-party games decreased to RMB 2,333 thousand from RMB 5,447 thousand, reflecting a decline of approximately 57.3%[96] - Revenue from in-game information services decreased to approximately RMB 139.6 million, down about 35.9% from RMB 217.7 million in the previous year, primarily due to reduced income from card games[30] Game Development and Strategy - The flagship product "Finger Sichuan Mahjong" ranked first in the iOS best-selling chart for board games in China during the first half of 2022[24] - The company launched two new games targeting overseas markets in the first half of 2022, expanding its product offerings[24] - The company reduced its investment in hyper-casual games and delisted 15 games to focus on high-quality game development[23] - The company plans to focus on R&D investment, enhancing player experience, and exploring overseas gaming market opportunities in the second half of 2022[27] Expenses and Costs - The cost of sales for the six months ended June 30, 2022, was approximately RMB 220.1 million, an increase of about 39.7% from RMB 157.6 million in the same period of 2021[32] - Sales and distribution expenses rose by 69.8% to approximately RMB 82.3 million for the six months ended June 30, 2022, from RMB 48.4 million in 2021[36] - Research and development expenses increased by 32.7% to approximately RMB 50.0 million for the six months ended June 30, 2022, compared to RMB 37.7 million in 2021[38] Compliance and Governance - The company confirmed compliance with applicable accounting principles and standards for the six months ended June 30, 2022[52] - The board reviewed the overall compliance with the structural contracts and found that the group has adhered to all significant aspects[56] - The audit committee, consisting of three independent non-executive directors, confirmed the adequacy of disclosures in the interim results[52] Shareholder Information - As of June 30, 2022, the company had a total of 1,016,958,187 shares issued[61] - The company’s directors and senior management held significant equity interests, with Mr. Ye Sheng owning 22.78% of the company[61] - The company adopted a restricted share unit plan to incentivize directors, senior management, and employees, issuing a total of 62,561,080 shares under this plan[71] - The stock option plan was adopted on March 28, 2019, to provide eligible individuals with opportunities to acquire personal shares, enhancing their contributions to the group's performance and growth[72] Financial Position - Cash and bank balances increased slightly to approximately RMB 709.9 million as of June 30, 2022, from RMB 644.7 million as of December 31, 2021[45] - The current ratio improved to 8.1 as of June 30, 2022, compared to 6.0 as of December 31, 2021[45] - The company reported a foreign exchange gain of RMB 115 thousand for the period, compared to a loss of RMB 1,526 thousand in the previous year[80] - The company’s retained earnings as of June 30, 2022, stand at RMB 591,797,000[84] Investments and Acquisitions - The company had no significant investments or acquisitions planned as of June 30, 2022[47] - The company incurred a loss of RMB 9,231,000 from fair value gains for the first half of 2022, compared to a loss of RMB 5,017,000 in the previous year[86] Market and Regulatory Environment - The company is closely monitoring developments related to foreign investment laws and regulations, which have not impacted its business as of the report date[57] - The company expects to maintain its qualification as a "high-tech enterprise," which allows for a preferential tax rate of 15%[103]