Financial Performance - The total revenue for 2024 was approximately RMB 1,315.1 million, representing a growth of about 66.4% compared to 2023[12]. - Online advertising revenue reached approximately RMB 530.7 million, an increase of about 157.3% year-over-year[12]. - The exclusive licensed online game revenue was approximately RMB 754.3 million, growing by about 51.6% from the previous year[12]. - The online game platform revenue decreased to approximately RMB 29.6 million, a decline of about 65.7% compared to 2023[12]. - The company achieved a net profit attributable to the parent company of approximately RMB 34.9 million, a decrease of about 18.2% from 2023[12]. - The group's total revenue for the year ended December 31, 2024, was approximately RMB 1,315.1 million, representing a growth of about 66.4% compared to 2023[26]. - Revenue from online advertising services reached approximately RMB 530.7 million, an increase of about 157.3% year-over-year[32]. - Revenue from the operation of exclusive licensed online games increased by approximately 51.6% to RMB 754.3 million, driven by the acquisition of 80% of Tianjin Qiyu Network Technology Co., Ltd.[32]. - Revenue from the online gaming platform decreased by approximately 65.7% to RMB 29.6 million due to the lifecycle stage of several games and a decline in spending by paying players[32]. - The total comprehensive income for the year decreased by approximately 29.6% from RMB 47.3 million in 2023 to RMB 33.3 million in 2024[46]. - Cash and bank balances decreased from approximately RMB 533.9 million in 2023 to approximately RMB 442.3 million in 2024[47]. - The cost of sales and services increased by approximately 84.8% from RMB 625.4 million in 2023 to RMB 1,156.0 million in 2024, primarily due to increased costs associated with exclusive online gaming operations and mobile e-commerce expansion[36]. - Gross profit decreased by 4.2% from approximately RMB 165.0 million in 2023 to approximately RMB 158.1 million in 2024, with the gross margin dropping from 20.9% to 12.0%[38]. - Other income fell by approximately 52.7% from RMB 15.1 million in 2023 to RMB 7.1 million in 2024, mainly due to reduced bank deposit income and government subsidies[39]. - Administrative expenses increased by approximately 19.1% from RMB 45.4 million in 2023 to RMB 54.1 million in 2024, driven by higher consulting service fees and compensation costs due to workforce optimization[41]. - Research and development expenses decreased by approximately 9.8% from RMB 47.7 million in 2023 to RMB 43.0 million in 2024, primarily due to a reduction in R&D staff[42]. User Engagement and Market Expansion - As of December 31, 2024, the monthly active users for all computer and mobile device tool software were approximately 63.7 million, reflecting a decrease due to a sluggish domestic market[19]. - The company reported a significant increase in user engagement, with a 25% year-over-year growth in active users[74]. - User retention rates improved to 85%, up from 78% in the previous year[76]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[78]. - The exclusive licensed online gaming business is expanding its user base through new game launches and ongoing promotions, with plans for several new titles to be released in 2025[22]. - The company is enhancing its online game business, with increasing user satisfaction and rising recharge amounts from players[14]. - The company is focusing on the development of mobile e-commerce, leveraging online traffic monetization strategies to improve revenue rates[21]. - The company is actively exploring new profit models, focusing on developing mobile e-commerce business through precise advertising on well-known platforms[14]. Product Development and Innovation - The company launched the AiNAS product, which has gained user popularity and includes a hardware version for remote wireless connection[14]. - The company launched an AI-driven cleaning system and various intelligent tools in 2024, significantly enhancing user experience and operational efficiency[20]. - The group aims to enhance its mobile e-commerce business and expand its product matrix to increase market share[27]. - The group will continue to optimize software products and develop innovative products to strengthen monetization capabilities[27]. - The group has developed a series of software tools for personal computers and mobile devices, monetizing through online advertising and online gaming, with the "Lu Da Shi" software being a well-known brand[92]. - The company is investing $10 million in research and development for new technologies aimed at enhancing user experience[82]. Strategic Initiatives and Acquisitions - A strategic acquisition is in progress, which is projected to increase the company's overall market valuation by 10%[85]. - The company is exploring partnerships with local firms to enhance distribution channels in new markets[79]. - The company aims to enhance its product matrix and local operational strategies to expand user scale and create sustainable value returns in 2025[24]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has adopted the applicable code provisions from the Listing Rules[200]. - The audit committee has reviewed the accounting principles and policies adopted by the company for the fiscal year ending December 31, 2024[197]. - Deloitte resigned as the company's auditor on December 9, 2024, and Zhonghui Anda CPA Limited has been appointed as the new auditor[198]. - The company has received a clean opinion from its auditor regarding the ongoing related party transactions and contract arrangements[161]. - The independent non-executive directors confirmed the ongoing related party transactions and contract arrangements, ensuring compliance with regulations[163]. Related Party Transactions - The company is involved in ongoing related party transactions with 360 Group, primarily providing online advertising services[155]. - The total actual transaction amount with the 360 Group under the main sales agreement was RMB 101.9 million, while the proposed annual cap is RMB 135.0 million[154]. - The total actual transaction amount under the main purchase agreement with the 360 Group was RMB 54.3 million, with a proposed annual cap of RMB 264.5 million[154]. - The agreements with 360 Technology and Eastern Network Data Science are subject to independent shareholder approval due to exceeding specified thresholds[158]. - The company operates its online gaming business through a Chinese entity, Chengdu Qilu, with significant ownership stakes held by various shareholders[163]. - The agreements are structured to comply with Chinese laws regarding foreign investment restrictions in the online gaming sector[163]. Shareholder Information - The board proposed a final dividend of HKD 0.10 per share for the year ending December 31, 2024, compared to no dividend in 2023[111]. - As of December 31, 2024, the company had distributable reserves amounting to RMB 673.7 million[117]. - Major shareholders include Master Holdings with 33.98% and Cheng Sheng with 16.91% of the issued share capital[148]. - As of December 31, 2024, Mr. Tian Ye holds 91,415,057 shares, representing 33.98% of the company's issued share capital[146]. Risks and Challenges - The group faces significant risks, including the need for continuous innovation to retain users and potential negative impacts from data protection failures[96]. - The group’s online gaming operations are subject to strict regulations in China, impacting foreign investment opportunities[100]. - There is significant uncertainty regarding the interpretation and implementation of the Foreign Investment Law of the People's Republic of China, which may impact the company's corporate structure and operations[190]. - The company may face substantial costs and restrictions if it exercises options to acquire equity in Chengdu Qilu[194]. Employee and Management Changes - The group had a total of 181 full-time employees, including 83 in R&D and 71 in sales and marketing[104]. - The company is committed to enhancing its ability to attract and retain skilled employees in a competitive internet industry[104]. - Mr. He Shih-wei resigned as Executive Director effective December 9, 2024, to focus more on product technology and R&D, and to meet board diversity requirements by appointing a female director[127]. - Mr. Sun Chun-feng resigned as Non-Executive Director effective June 12, 2024, to allocate more time to personal matters[127].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue increased by 66.4% to RMB 1,315,076,000 compared to RMB 790,512,000 in 2023[4] - Gross profit decreased by 4.2% to RMB 158,071,000, down from RMB 164,962,000 in the previous year[4] - Profit before tax fell by 32.4% to RMB 36,026,000, compared to RMB 53,332,000 in 2023[4] - The total comprehensive income for the year was RMB 33,275,000, a decline of 29.6% from RMB 47,277,000 in 2023[4] - Basic and diluted earnings per share decreased by 18.2% to RMB 12.97 from RMB 15.85 in the previous year[4] - Other income decreased from RMB 15,113,000 in 2023 to RMB 7,141,000 in 2024, representing a decline of approximately 52.8%[20] - The net loss from financial assets measured at fair value through profit or loss was RMB (2,997,000) in 2024, compared to no loss in 2023[21] - Basic and diluted earnings per share for 2024 were RMB 34,901,000, down from RMB 42,642,000 in 2023, indicating a decrease of approximately 18.1%[23] - Total comprehensive income decreased by approximately 29.6% from approximately RMB 47.3 million for the year ended December 31, 2023, to approximately RMB 33.3 million for the year ending December 31, 2024[56] Revenue Breakdown - Revenue from online advertising services surged to RMB 530,689,000, up from RMB 206,236,000, marking a significant increase[14] - Revenue from the operation of exclusive licensed online games rose to RMB 754,278,000, compared to RMB 497,690,000 in 2023[14] - Revenue from the online gaming platform decreased to approximately RMB 29.6 million, down about 65.7% from the previous year[35] - Revenue from the exclusive licensed online gaming business was approximately RMB 754.3 million, reflecting a growth of about 51.6% compared to 2023[35] - Revenue from electronic device sales is expected to increase by approximately 98.4%, from about RMB 244,000 in 2023 to approximately RMB 484,000 in 2024[43] Cash Flow and Assets - The company's cash and cash equivalents decreased to RMB 442,336,000 from RMB 503,852,000 in the previous year[6] - As of December 31, 2023, and December 31, 2024, the company's bank balances and cash were approximately RMB 533.9 million and RMB 442.3 million, respectively[57] - The company had no bank borrowings as of December 31, 2024, and therefore no capital to debt ratio was presented[58] - Non-current assets totaled RMB 60,102,000, slightly up from RMB 59,350,000 in 2023[6] - The company reported a significant increase in trade receivables, which rose to RMB 157,231,000 from RMB 78,203,000 in the previous year[6] - Trade receivables increased significantly from RMB 78,203,000 in 2023 to RMB 157,231,000 in 2024, reflecting an increase of approximately 100.9%[23] - Cash and cash equivalents decreased from RMB 503,852,000 in 2023 to RMB 442,336,000 in 2024, a decline of about 12.2%[27] Expenses and Liabilities - Administrative expenses increased by approximately 19.1% from approximately RMB 45.4 million for the year ended December 31, 2023, to approximately RMB 54.1 million for the year ending December 31, 2024, driven by increased consulting service fees and compensation costs due to workforce optimization[52] - R&D expenses decreased by approximately 9.8% from approximately RMB 47.7 million for the year ended December 31, 2023, to approximately RMB 43.0 million for the year ending December 31, 2024, mainly due to a reduction in R&D staff[53] - Sales and distribution expenses decreased by approximately 12.1% from approximately RMB 28.1 million for the year ended December 31, 2023, to approximately RMB 24.7 million for the year ending December 31, 2024, primarily due to lower marketing personnel salary costs[54] - Tax expenses decreased by approximately 54.6% from approximately RMB 6.1 million for the year ended December 31, 2023, to approximately RMB 2.8 million for the year ending December 31, 2024, mainly due to a decrease in pre-tax profit and the use of unutilized losses from previous years by certain subsidiaries[55] - Trade payables decreased from RMB 99,941,000 in 2023 to RMB 86,223,000 in 2024, a reduction of approximately 13.9%[28] Strategic Initiatives - The group is actively exploring new growth opportunities in the technology sector and expanding its online gaming and mobile e-commerce businesses[29] - The company plans to enhance its product matrix and user engagement through continuous software product optimization and the development of innovative products[36] - The company aims to expand its market share by enriching its overseas mobile product matrix and enhancing its online game offerings[36] - The company will continue to seek suitable exclusive licenses for online games to increase its online game portfolio[36] - The company is focusing on optimizing online traffic strategies to enhance revenue rates in the mobile e-commerce sector[32] Corporate Governance - The company has complied with all applicable corporate governance codes during the reporting period, except for one provision[81] - The company has adopted the standard code of conduct for securities trading by directors and confirmed compliance during the reporting period[83] - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ending December 31, 2024, and agreed on the accounting principles adopted by the group[85] - The group's auditor confirmed that the financial statements for the year ending December 31, 2024, are consistent with the audited consolidated financial statements[86] - The company operates under the corporate governance code as per the listing rules[89] Employee and Operational Information - The company has 181 full-time employees, including 2 senior management, 71 sales and marketing staff, 83 R&D personnel, and 25 administrative staff[75] - Monthly active users for all computer and mobile tool software were approximately 63.7 million as of December 31, 2024, showing a decline due to a sluggish domestic market[30] Future Outlook - The company plans to expand its exclusive licensed online gaming products, with some expected to launch in 2025[33] - There are no significant contingent liabilities or guarantees as of December 31, 2024[77] - The company has no significant acquisitions or disposals during the reporting period[73] - There are no major future investment plans or capital asset acquisitions as of December 31, 2024[74] - The company will hold its annual general meeting on May 26, 2025[88]

Financial Performance - In the first half of 2024, the company experienced a decline in overall profit due to a decrease in online advertising services for PC and mobile tools, attributed to a slow-growing Chinese economy and conservative consumer spending [7]. - The company's net profit decreased in the first half of 2024, despite some revenue growth from online gaming and mobile e-commerce businesses [7]. - In the first half of 2024, the company achieved a revenue of approximately RMB 742.1 million, representing an increase of over 100% compared to RMB 291.8 million in the same period of 2023 [12]. - Revenue for the six months ended June 30, 2024, was RMB 742,125 thousand, an increase from RMB 291,800 thousand in the same period of 2023, representing a growth of 154.1% [50]. - The pre-tax profit for the six months ended June 30, 2024, was RMB 26,141 thousand, down from RMB 36,525 thousand in the previous year, reflecting a decline of 28.4% [50]. - Net profit attributable to the owners of the company for the period was RMB 20,228 thousand, compared to RMB 28,573 thousand in the same period of 2023, a decrease of 29.2% [50]. - Basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 7.52, down from RMB 10.62 in the same period of 2023, a decline of 29.5% [50]. - Gross profit decreased by approximately 3.7% from approximately RMB 89.8 million for the six months ended June 30, 2023, to approximately RMB 86.5 million for the six months ending June 30, 2024, with a gross margin decline from 30.8% to 11.7% [20]. - The company reported a total comprehensive income of RMB 21,884 thousand for the six months ended June 30, 2024, compared to RMB 31,390 thousand for the same period in 2023 [52]. Revenue Sources - The online advertising service generated RMB 279.8 million, accounting for 37.6% of total revenue, while the exclusive online game operations contributed RMB 445.3 million, making up 60.0% of total revenue [12]. - Revenue from online advertising services increased over 100% from approximately RMB 102.2 million for the six months ended June 30, 2023, to approximately RMB 279.8 million for the six months ending June 30, 2024 [13]. - Revenue from the online gaming platform decreased by approximately 73.9% from approximately RMB 65.1 million for the six months ended June 30, 2023, to approximately RMB 17.0 million for the six months ending June 30, 2024 [14]. - Revenue from the exclusive licensed online gaming business increased over 100% from approximately RMB 124.3 million for the six months ended June 30, 2023, to approximately RMB 445.3 million for the six months ending June 30, 2024 [15]. User Engagement and Market Strategy - As of June 30, 2024, the monthly active users for all computer and mobile tool software were approximately 71.9 million, reflecting a decline due to a sluggish domestic market [7]. - The company is actively developing a series of computer and mobile tool software, including the "Lu Master Software," to accumulate a large user base through free downloads and installations [7]. - The company has been promoting various mobile tool products in the domestic market to increase active users, although the promotional effects have not met expectations [7]. - The company aims to continue expanding its online game business and improve its competitive edge by integrating online game traffic generation with game publishing [11]. - The company plans to enhance its mobile e-commerce business by optimizing its traffic strategies to improve conversion rates in the second half of 2024 [10]. - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives [50]. Operational Challenges - The overall advertising spending from clients has continued to decline, impacting the company's revenue from online advertising services [7]. - The company is focusing on the development of profitable business scenarios within the technology industry, despite the challenges faced in the advertising market [7]. - The company is committed to maintaining an exploratory spirit to identify new growth points in a rapidly changing market environment [7]. - The company faces significant risks related to its contractual arrangements, including potential non-compliance with Chinese regulations and tax implications [41]. - The company has implemented measures to mitigate risks associated with its contractual arrangements, including annual reviews by the board and external legal consultations [41]. Employee and Governance - The company has 222 full-time employees as of June 30, 2024, including 2 senior management, 87 sales and marketing staff, 105 R&D personnel, and 28 administrative staff [34]. - The company emphasizes competitive compensation, performance-based bonuses, and continuous training and development for its employees [34]. - The company has appointed new non-executive directors, enhancing its governance structure [37]. - The company has complied with all provisions of the corporate governance code during the reporting period [35]. Future Outlook and Investments - The company is committed to attracting and retaining talent while establishing strategic alliances for investment and acquisitions [11]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in the next fiscal year [99]. - A strategic acquisition of a local competitor is anticipated to close by Q4 2024, expected to increase market share by 10% [99]. - The company has set a performance guidance of 10% revenue growth for the next quarter, driven by increased user engagement and new product offerings [98]. - Future outlook remains positive, with management projecting a continued upward trend in both user growth and revenue generation [98].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 742,125,000, representing a 154.3% increase compared to RMB 291,800,000 in the same period of 2023[1] - Gross profit for the same period was RMB 86,481,000, a decrease of 3.7% from RMB 89,846,000 year-on-year[2] - Profit before tax decreased by 28.4% to RMB 26,141,000 from RMB 36,525,000 in the previous year[2] - Net profit for the period was RMB 21,884,000, down 30.3% from RMB 31,390,000 in the prior year[2] - Earnings attributable to equity holders of the company were RMB 20,228,000, a decline of 29.2% compared to RMB 28,573,000 in the same period last year[1] - Basic and diluted earnings per share were RMB 7.52, down 29.2% from RMB 10.62 in the previous year[2] - Total profit and comprehensive income decreased by approximately 30.3% from RMB 31.4 million for the six months ended June 30, 2023, to RMB 21.9 million for the six months ended June 30, 2024[43] Revenue Breakdown - Online advertising services generated revenue of RMB 279,782 thousand, up 174.5% from RMB 102,196 thousand year-over-year[11] - Exclusive licensed online gaming business revenue surged to RMB 445,343 thousand, compared to RMB 124,255 thousand in the previous year, marking an increase of 258.5%[11] - Revenue from the Chinese market accounted for RMB 713,439 thousand, a substantial rise from RMB 260,074 thousand, while overseas revenue decreased slightly to RMB 28,686 thousand from RMB 31,726 thousand[12] - Revenue from operating exclusive licensed online games increased over 100% from approximately RMB 124.3 million to approximately RMB 445.3 million, benefiting from the acquisition of 80% of Tianjin Qiyu Network Technology Co., Ltd.[31] - Revenue from the online gaming platform decreased approximately 73.9% from approximately RMB 65.1 million to approximately RMB 17.0 million due to market inactivity and lifecycle stage of games[30] Assets and Liabilities - Trade receivables increased significantly to RMB 234,007,000 from RMB 78,203,000 as of December 31, 2023[3] - Cash and cash equivalents decreased to RMB 427,685,000 from RMB 503,852,000 at the end of 2023[3] - Total assets less current liabilities amounted to RMB 668,333,000, up from RMB 646,372,000 at the end of the previous year[4] - The company reported a total equity of RMB 665,366,000, an increase from RMB 643,482,000 as of December 31, 2023[4] - Trade payables totaled RMB 87,021 thousand as of June 30, 2024, compared to RMB 68,780 thousand as of December 31, 2023, indicating a rise in liabilities[22] Expenses and Costs - Total sales and service costs increased over 100% from approximately RMB 201.9 million to approximately RMB 655.5 million, driven by increased costs in operating exclusive licensed online games and mobile e-commerce[34] - Administrative expenses increased by approximately 22.3% from RMB 16.2 million for the six months ended June 30, 2023, to RMB 19.8 million for the six months ending June 30, 2024[39] - R&D expenses rose by about 10.7% from RMB 23.8 million for the six months ended June 30, 2023, to RMB 26.4 million for the six months ending June 30, 2024[40] - Sales and distribution expenses increased by approximately 3.4% from RMB 13.1 million for the six months ended June 30, 2023, to RMB 13.6 million for the six months ending June 30, 2024[41] - Tax expenses decreased by approximately 17.1% from RMB 5.1 million for the six months ended June 30, 2023, to RMB 4.3 million for the six months ending June 30, 2024[42] Market and Product Development - The company has plans for market expansion and new product development, although specific details were not disclosed in the conference call[11] - The company launched a series of AI-driven computer tools, enhancing user experience with features like AI smart cleaning and intelligent system management tools[24] - The online gaming platform successfully launched multiple new games, resulting in an increase in average revenue per user compared to the same period last year[24] - The company introduced four new tool products in the first half of 2024, with one product ranking in the top ten in several global application markets, indicating strong market demand[25] - The company is focusing on expanding its mobile e-commerce business and optimizing its advertising strategies to improve revenue in the second half of 2024[24] - The company plans to continue developing its product matrix for both domestic and overseas mobile tools, aiming to increase market share[26] - The company is set to launch new online games, including "Kung Fu Panda: The Dragon Knight," in various regions, including Australia and the Philippines, in the second half of 2024[24] - The company is exploring new business types, including a private cloud product "Lu Master AiNAS," to facilitate user access to NAS systems[25] - The company aims to enhance user engagement and revenue through continuous product updates and improvements in its software offerings[26] Employee and Governance - The group had a total of 222 full-time employees as of June 30, 2024, including 2 senior management, 87 sales and marketing staff, 105 R&D staff, and 28 administrative staff[56] - The company has complied with all applicable corporate governance code provisions except for the separation of the roles of Chairman and CEO[60] - The board of directors includes both executive and independent non-executive members[68] Cash Management - As of June 30, 2024, the bank balance and cash were approximately RMB 427.7 million, down from RMB 533.9 million as of December 31, 2023[44] - The company subscribed to six structured deposit products from China Merchants Bank during the reporting period, with amounts ranging from RMB 40 million to RMB 50 million[48][49][50][51][52][53] - The expected annualized interest rates for the structured deposits ranged from 1.85% to 2.86%[48][51][52] - The company has no bank borrowings as of June 30, 2024, indicating no capital to debt ratio presented[45] - As of June 30, 2024, the total interest received from expired structured deposit products amounted to RMB 77,671.23, RMB 67,044.66, RMB 71,722.19, RMB 43,879.45, RMB 60,065.75, and RMB 64,984.93 respectively[54] Other Information - There were no significant acquisitions or disposals made by the group during the reporting period[55] - The company has no pledged assets as of June 30, 2024[57] - There are no significant contingent liabilities, guarantees, or lawsuits as of June 30, 2024[58] - The board has resolved not to declare an interim dividend for the six months ended June 30, 2024[59] - No purchases, sales, or redemptions of the company's listed securities occurred during the reporting period[62] - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2024[63] - The interim results announcement is available on the Stock Exchange and the company's website[64] - The reporting period covers six months ending June 30, 2024[68] - The company operates through several entities in China, including Chengdu Qilu and Tianjin Qiyu[67] - The company's shares have a par value of HKD 0.01 each[68]

Financial Performance - The total revenue for 2023 was approximately RMB 790.5 million, representing a growth of over 100.0% compared to 2022[8]. - Online advertising revenue reached approximately RMB 206.2 million, an increase of about 13.5% year-over-year[8]. - Revenue from the exclusive licensed online games was approximately RMB 497.7 million, showing a growth of over 100.0% compared to 2022[8]. - The net profit attributable to the parent company was RMB 42.6 million, a decrease of approximately 29.5% from the previous year[8]. - Revenue increased over 100% from approximately RMB 359.1 million for the year ended December 31, 2022, to approximately RMB 790.5 million for the year ended December 31, 2023, primarily due to the acquisition of Tianjin Qiyu Network Technology Co., Ltd.[23]. - Revenue from operating exclusive licensed online games surged over 100% from approximately RMB 3.8 million in 2022 to approximately RMB 497.7 million in 2023, attributed to the acquisition of 80% of Tianjin Qiyu[27]. - Revenue from online advertising services rose approximately 13.5% from about RMB 181.7 million in 2022 to approximately RMB 206.2 million in 2023, driven by the expansion of domestic and overseas mobile operations[25]. - The total profit and comprehensive income for the year decreased by approximately 27.9% from about RMB 65.6 million for the year ended December 31, 2022, to about RMB 47.3 million for the year ended December 31, 2023[40]. Strategic Initiatives - The company plans to launch the exclusive "Kung Fu Panda" IP game in 2024, indicating a strategic focus on expanding its gaming portfolio[10]. - The company plans to launch four new online games in 2024, focusing on role-playing and card game genres[18]. - The company is actively exploring overseas markets to enhance product influence and revenue scale[10]. - The company aims to enhance user stickiness and expand its user base through continuous optimization of software products and a rich product matrix[20]. - The company aims to enhance its competitive edge by expanding its online gaming business and improving product quality through strengthened R&D capabilities[21]. Product Development and Diversification - The company has developed a series of tool products in 2023 to diversify its product offerings and meet various application scenarios[9]. - The company has optimized its membership subscription model to generate additional revenue from PC and other tool products[8]. - The company operates 18 overseas mobile tool products, primarily targeting North America and Southeast Asia[19]. Financial Management and Expenses - Gross profit decreased approximately 7.4% from about RMB 178.1 million in 2022 to approximately RMB 165.0 million in 2023, with a gross margin decline from approximately 49.6% to 20.9%[31]. - Administrative expenses increased approximately 9.7% from about RMB 41.4 million in 2022 to approximately RMB 45.4 million in 2023, primarily due to increased personnel costs[34]. - Research and development expenses rose approximately 7.6% from about RMB 44.3 million in 2022 to approximately RMB 47.7 million in 2023, mainly due to the increase in personnel following the acquisition of Tianjin Qiyu[35]. - Sales and distribution expenses increased approximately 14.8% from about RMB 24.5 million in 2022 to approximately RMB 28.1 million in 2023, primarily due to increased marketing expenses for market expansion[38]. - Other income increased approximately 40.0% from about RMB 10.8 million in 2022 to approximately RMB 15.1 million in 2023, mainly due to increased bank deposit income and government subsidies[32]. Employee and Corporate Governance - The company employed 251 full-time employees as of December 31, 2023, including 134 in R&D and 90 in sales and marketing[64]. - The company emphasizes the importance of maintaining strong relationships with stakeholders, including employees and suppliers, for its success[99]. - The company is committed to providing competitive compensation and ongoing training for its employees to enhance their skills and knowledge[101]. - The company has established a remuneration committee to formulate remuneration policies for directors, which must be approved by shareholders at the annual general meeting[127]. Risk Management and Compliance - The company has faced significant risks, including the need for continuous innovation to retain users and the potential negative impact of data protection failures on its reputation[92]. - The company operates under strict regulations in China regarding foreign investment in value-added telecommunications services, which may affect its business operations[96]. - The company’s online gaming business may face challenges in attracting new players and achieving commercial success due to evolving regulations[97]. - The company faces significant uncertainties regarding the interpretation and implementation of the Foreign Investment Law of the People's Republic of China, which may impact its current corporate structure and business operations[185]. Related Party Transactions - The total actual transaction amount with the 360 Group for the year ended December 31, 2023, was RMB 17.6 million under the main sales agreement[149]. - The total actual transaction amount under the main purchase agreement with the 360 Group was RMB 63.5 million for the year ended December 31, 2023[149]. - The proposed annual cap for the main sales agreement with the 360 Group for 2024 is RMB 135 million[149]. - The proposed annual cap for the main purchase agreement with the 360 Group for 2024 is RMB 264.5 million[149]. - The independent non-executive directors have reviewed and confirmed the ongoing related party transactions and contract arrangements, ensuring they are conducted on fair and reasonable terms[159]. Corporate Structure and Control - The company operates in China through Chengdu Qilu and its subsidiaries under contractual arrangements, which may not be enforceable under Chinese law[186]. - The company has established a contractual arrangement to gain effective control and economic benefits from Chengdu Qilu and its subsidiaries due to foreign investment restrictions in China[162]. - Chengdu Qilu and its subsidiaries primarily engage in online gaming operations, holding necessary licenses for such activities[170]. - The exclusive purchase rights agreement allows the company to acquire all or part of Chengdu Qilu's equity at a nominal price, with an initial term of ten years[171].

Financial Performance - For the fiscal year ended December 31, 2023, the company's revenue reached RMB 790,512 thousand, representing a 120.1% increase compared to RMB 359,102 thousand in 2022[4] - The gross profit for the same period was RMB 164,962 thousand, which is a decrease of 7.4% from RMB 178,137 thousand in the previous year[4] - The profit before tax decreased by 26.0% to RMB 53,332 thousand, down from RMB 72,103 thousand in 2022[4] - The total comprehensive income for the year was RMB 47,277 thousand, reflecting a decline of 27.9% from RMB 65,560 thousand in the prior year[4] - The earnings attributable to equity holders of the company were RMB 42,642 thousand, a decrease of 29.5% compared to RMB 60,486 thousand in 2022[4] - Basic and diluted earnings per share were RMB 15.85, down 29.5% from RMB 22.49 in the previous year[4] - The company reported a net profit of RMB 42,642,000 for 2023, down 29.6% from RMB 60,486,000 in 2022, reflecting a decrease in pre-tax profit[28] - The total profit and comprehensive income for the year decreased by approximately 27.9% from RMB 65.6 million for the year ended December 31, 2022, to approximately RMB 47.3 million for the year ended December 31, 2023[74] Revenue Breakdown - The company reported a significant increase in revenue from its exclusive licensed online gaming business, which rose to RMB 497,690 thousand from RMB 3,834 thousand in 2022[18] - Revenue from the Chinese market was RMB 750,631,000, accounting for 94.9% of total revenue, while overseas revenue was RMB 39,881,000, up 27.1% from RMB 31,389,000 in 2022[21] - Online advertising service revenue was approximately RMB 206.2 million, an increase of about 13.5% year-over-year[49] - Revenue from the online gaming platform decreased by approximately 50.2% to RMB 86.3 million compared to 2022[49] - Revenue from the operation of exclusive licensed online games increased by over 100.0% to RMB 497.7 million compared to 2022[49] - Revenue from operating exclusive licensed online games surged over 100% from approximately RMB 3.8 million in 2022 to approximately RMB 497.7 million in 2023, attributed to the full acquisition of Tianjin Qiyu[59] - Revenue from online advertising services rose approximately 13.5% from about RMB 181.7 million in 2022 to approximately RMB 206.2 million in 2023, driven by the expansion of domestic and overseas mobile operations[56] - Revenue from online game platforms decreased approximately 50.2% from about RMB 173.4 million in 2022 to approximately RMB 86.3 million in 2023, mainly due to several games entering the later stages of their life cycle[57] Asset Management - Trade receivables increased to RMB 78,203 thousand, up from RMB 38,204 thousand in the previous year, indicating improved sales performance[8] - The total assets less current liabilities amounted to RMB 646,372 thousand, compared to RMB 602,011 thousand in 2022, showing a positive trend in asset management[10] - Trade receivables increased to RMB 78,203,000 in 2023, up 104.5% from RMB 38,204,000 in 2022, with a significant rise in receivables from third parties[32] Cost Management - The financial cost for 2023 was RMB 6,055,000, slightly reduced from RMB 6,543,000 in 2022, indicating improved cost management[26] - Gross profit decreased approximately 7.4% from about RMB 178.1 million in 2022 to approximately RMB 165.0 million in 2023, with a gross margin decline from approximately 49.6% to 20.9%[65] - Total sales and service costs rose significantly, with costs for online traffic monetization increasing over 100% to approximately RMB 625.4 million in 2023, driven by higher costs associated with exclusive licensed online games and promotional expenses[63] Operational Strategy - The company has identified its main operational segments as online advertising services, online gaming platforms, and sales of smart accessories, with a focus on expanding its market presence in China[15] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[21] - The company plans to continue expanding its online gaming business and enhance user engagement through product innovation and strategic partnerships[52] - The company aims to maintain stable development of existing businesses while focusing on new business growth, including online gaming platforms and mobile product matrix expansion[52] - The company will continue to attract and retain talent and establish strategic alliances for investment and acquisitions[53] Employee and Governance - The company has 251 full-time employees, including 134 in research and development[93] - The board of directors has resolved not to recommend the payment of a final dividend for the year ending December 31, 2023[98] - The audit committee has reviewed the annual results for the year ending December 31, 2023, and agreed with the accounting principles adopted by the company[104] Future Plans and Investments - The company launched a new strategy focusing on high-quality online games, with plans to release four new online games in 2024[46] - There are no major future plans for significant investments or capital assets as of December 31, 2023[92] Structured Deposits - The company subscribed to nine structured deposit products issued by China Merchants Bank during the reporting period, with a total investment of RMB 165 million, aimed at utilizing idle funds for better returns[79] - The expected annualized interest rates for the structured deposit products range from 1.85% to 3.00%, linked to gold price performance[80][81][82][83][84] - The company entered into a structured deposit agreement with China Merchants Bank for a total deposit amount of RMB 450 million, with an expected annualized interest rate ranging from 1.85% to 2.46%[85] - Another structured deposit agreement was made for RMB 500 million, with the same expected annualized interest rate and a maturity of 31 days[86] - As of December 31, 2023, the total interest received from various structured deposit agreements amounted to RMB 1,000,000.75[87] - The unredeemed amount of structured deposits as of December 31, 2023, was RMB 500 million[88] Miscellaneous - The company did not engage in any significant acquisitions or disposals during the reporting period[90] - The company has unutilized tax losses of RMB 89,431,000 as of December 31, 2023, which can be used to offset future profits[31] - Cash and cash equivalents as of December 31, 2023, were RMB 503,852,000, a decrease from RMB 532,902,000 in 2022, while fixed deposits over three months amounted to RMB 30,000,000[37] - The annual performance announcement will be published on the Hong Kong Stock Exchange website and the company's website, covering the fiscal year ending December 31, 2023[106] - The company will hold its Annual General Meeting on May 27, 2024[108] - The term "Monthly Active Users" refers to the number of unique devices that have activated or run the software, application, or online game at least once in a calendar month[109] - The report period refers to the fiscal year ending December 31, 2023[113]

User Engagement and Product Development - In the first half of 2023, the monthly active users for all computer and mobile device tool software reached approximately 92.1 million[11]. - The online gaming business saw a user conversion rate increase of over 25% compared to the same period last year, with the average revenue per new user increasing by over 30%[14]. - The company continued to innovate and optimize product features, launching new functionalities such as desktop organization and super uninstall tools to enhance user experience[13]. - The company has focused on developing online game platforms and has successfully expanded its user base through attractive new game releases and marketing activities[10]. - The company aims to enhance user engagement and expand its user base through continuous optimization of software products and a richer product matrix[18]. - The company has maintained a strong focus on user needs, launching the "Ludashi Pro" software to address industry pain points with customized development technology[14]. Financial Performance - The company's revenue increased by approximately 61.5% from RMB 180.6 million for the six months ended June 30, 2022, to RMB 291.8 million for the six months ended June 30, 2023[22]. - Net profit for the six months ended June 30, 2023, was RMB 31.4 million, representing a 20.3% increase from RMB 26.1 million in the prior year[97]. - Basic earnings per share for the period was RMB 10.62, compared to RMB 8.77 in the same period last year, reflecting a growth of 21.3%[97]. - Total comprehensive income increased by approximately 20.2% from about RMB 26.1 million for the six months ended June 30, 2022, to about RMB 31.4 million for the six months ended June 30, 2023[38]. - Revenue from online advertising services increased by approximately 7.1% from RMB 95.4 million to RMB 102.2 million, driven by the expansion of domestic and overseas mobile business[25]. Online Gaming and Advertising Services - Revenue from the operation of exclusive licensed online games surged over 100.0% from approximately RMB 3.2 million to approximately RMB 124.3 million during the same period, primarily due to the acquisition of Tianjin Qiyu[25]. - The company plans to launch three new online games in the second half of 2023, building on the success of two well-performing exclusive licensed online games[16]. - The company has established a partnership with Universal Pictures to develop a strategy online game combining simulation management and card combat, expected to launch by the end of 2023[16]. - Revenue from the online gaming platform decreased by approximately 20.5% from RMB 81.9 million to RMB 65.1 million, attributed to several games entering the later stages of their life cycle[25]. - The company plans to continue expanding its online gaming and advertising services, leveraging the significant revenue growth observed in these segments[108]. Cost and Expenses Management - Online traffic monetization costs increased over 100% from approximately RMB 95.5 million for the six months ended June 30, 2022, to approximately RMB 202.0 million for the six months ended June 30, 2023[28]. - Gross profit increased by approximately 5.6% from about RMB 85.1 million for the six months ended June 30, 2022, to about RMB 89.8 million for the six months ended June 30, 2023, with a gross margin decline from 47.1% to 30.8%[30]. - Research and development expenses rose by approximately 23.5% from about RMB 19.3 million for the six months ended June 30, 2022, to about RMB 23.8 million for the six months ended June 30, 2023, primarily due to the acquisition of Tianjin Qiyu[35]. - Administrative expenses decreased by approximately 5.7% from about RMB 17.2 million for the six months ended June 30, 2022, to about RMB 16.2 million for the six months ended June 30, 2023[33]. Investments and Acquisitions - The company acquired an 80% stake in Tianjin Qiyu Technology for RMB 2,292,000, increasing its ownership from 20% to 100%[129]. - The company made investments in joint ventures totaling RMB 33,050,000 as of June 30, 2023, compared to RMB 17,700,000 as of December 31, 2022, indicating a significant increase in investment[126]. - The company’s cash payment for the acquisition of Tianjin Qiyu was RMB 2,292 thousand, with additional equity in an associate valued at RMB 574 thousand[143]. - The mid-term revenue attributed to Tianjin Qiyu was RMB 114,943,000, contributing RMB 5,973,000 to the mid-term profit[147]. Regulatory and Compliance Issues - The company has complied with all corporate governance code provisions during the reporting period[63]. - The company continues to communicate with relevant government departments to ensure compliance with regulations and to establish a track record for its overseas telecommunications operations[72]. - The company is subject to potential additional tax assessments by Chinese tax authorities regarding its contractual arrangements, which could significantly reduce its net income and shareholder value[76]. - The latest amendments to the Foreign Investment Telecommunications Regulations maintain the restriction that foreign investors cannot hold more than 50% equity in companies providing value-added telecommunications services[71]. Shareholder and Capital Structure - Major shareholders include Master Holdings with 47.83% and Cheng Sheng with 30.76% of the issued share capital as of June 30, 2023[87]. - The company has no stock option grants, exercises, cancellations, or expirations under the stock option plan as of June 30, 2023[82]. - The company has no adopted share award plan as of the reporting date[83]. - The company’s total equity increased to RMB 632.5 million from RMB 601.1 million, reflecting a growth of 5.2%[100]. Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 471.5 million from RMB 532.9 million, a decline of 11.4%[100]. - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 20,146 thousand, a decrease from RMB 51,816 thousand in the same period of 2022[104]. - The company reported a net cash outflow from investing activities of RMB 75,922 thousand for the six months ended June 30, 2023, compared to a cash inflow of RMB 7,334 thousand in the same period of 2022[104]. - The company received government grants totaling RMB 482 thousand during the six months ended June 30, 2023, compared to RMB 1,381 thousand in the same period of 2022[115].

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，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 360 LUDASHI HOLDINGS LIMITED 3 6 0 魯 大 師 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3601） 截至2023年6月30日止六個月的中期業績公告 董事會欣然宣佈本集團截至2023年6月30日止六個月的未經審核中期綜合業績。本集團 截至2023年6月30日止六個月的簡明綜合財務報表已由本公司核數師根據由香港會計師公 會頒佈的香港審閱準則第2410號「經實體的獨立核數師執行中期財務資料審閱」審閱。此 外，該簡明綜合財務報表亦已經審計委員會審閱。 業績摘要 截至6月30日止六個月 2023年 2022年 同比變動 人民幣千元 人民幣千元 (%) （未經審核） （未經審核） 收入 291,800 180,627 61.5 毛利 89,846 85,079 5.6 ...

Financial Performance - Total revenue for 2022 was approximately RMB 359.1 million, an increase of about 6.3% compared to 2021[10] - The company’s net profit attributable to the parent company was RMB 60.5 million, an increase of about 9.9% from 2021[10] - Revenue increased by approximately 6.3% from about RMB 337.9 million for the year ended December 31, 2021, to about RMB 359.1 million for the year ended December 31, 2022[25] - Total comprehensive income for the year increased by approximately 13.7% from about RMB 57.7 million in 2021 to about RMB 65.6 million in 2022[39] - Gross profit increased by approximately 6.9% from about RMB 166.7 million in 2021 to about RMB 178.1 million in 2022, with a gross margin of approximately 49.6%[32] Revenue Breakdown - Online advertising revenue was approximately RMB 181.7 million, a decrease of about 10.9% from 2021[10] - Online gaming platform revenue was approximately RMB 173.4 million, an increase of about 52.5% compared to 2021[10] - Revenue from online advertising services decreased by approximately 10.9% from about RMB 203.9 million in 2021 to about RMB 181.7 million in 2022 due to reduced advertising budgets from PC clients impacted by the pandemic[27] - Revenue from the online gaming platform increased by approximately 52.5% from about RMB 113.7 million in 2021 to about RMB 173.4 million in 2022, driven by the successful launch of two popular games[27] - Revenue from exclusive licensed online gaming operations decreased by approximately 80.6% from about RMB 19.7 million in 2021 to about RMB 3.8 million in 2022 due to delays in development caused by the pandemic[28] User Engagement - The monthly active users for all calculator and mobile device tools software reached approximately 104.5 million as of December 31, 2022[15] - The online gaming platform business saw a year-on-year growth of about 18% in new user acquisition and active players[17] Research and Development - The company achieved significant improvements in the performance testing of traditional products through the iteration of the AI MARK 3.0 engine[11] - The company is committed to continuous R&D investment in the Lu Master Pro software to achieve significant commercial breakthroughs and profitability[22] - The company aims to enhance the functionality of the Lu Master Pro software, which has undergone at least 15 version updates annually, expanding to over 1,000 features across 10 modules[17] Strategic Plans - The company plans to launch three new exclusive online games in 2023 to boost revenue[12] - The company plans to release three exclusive licensed online games in 2023, focusing on role-playing and card simulation genres[19] - The company plans to strengthen partnerships with major life service and e-commerce platforms to enhance the Lu Master Pro software's market presence[23] Operational Efficiency - The company expanded its overseas mobile product operations with a unique operational strategy, resulting in improved profit margins[11] - The company’s hardware laboratory received increased industry recognition and made progress in testing methods and content production[11] - The company aims to become the most respected provider of hardware and system evaluation and monitoring solutions in China[11] Financial Management - As of December 31, 2022, the company's bank balance and cash were approximately RMB 532.9 million, an increase from approximately RMB 385.0 million as of December 31, 2021, representing a growth of 38.4%[40] - The company's capital expenditures for the year ended December 31, 2022, totaled RMB 2.991 million, a decrease of 43.4% from RMB 5.293 million in 2021[42] - The company has not recommended a final dividend for the year ending December 31, 2022, consistent with the previous year[98] Employee and Governance - The company employed 269 full-time employees as of December 31, 2022, including 114 in sales and marketing, 124 in R&D, and 29 in administration[58] - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring compliance with listing rules regarding independent directors[186] - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period, except for the separation of the roles of chairman and CEO[187] Related Party Transactions - The group engaged in related party transactions totaling RMB 36.2 million under the main sales agreement with 360 Group for the year ended December 31, 2022, with a proposed annual cap of RMB 135.0 million for 2023[139] - The group has confirmed that its public float complies with the listing rules as of the report date[138] - The company has received an unqualified opinion from its auditor regarding the related party transactions and contractual arrangements for the year ending December 31, 2022[147] Risks and Compliance - The company faces significant risks including the inability to continuously innovate and attract users, which may lead to customer loss and revenue decline[85] - There are significant uncertainties regarding the interpretation and implementation of the Foreign Investment Law in China, which may impact the company's corporate structure and operations[173] - The company is subject to scrutiny by Chinese tax authorities regarding the contractual arrangements, which could result in additional tax liabilities[173]

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，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 360 LUDASHI HOLDINGS LIMITED 3 6 0 魯 大 師 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3601） 截至2022年12月31日止年度的全年業績公告 董事會欣然宣佈本集團截至2022年12月31日止年度的經審核綜合業績。該截至2022年12 月31日止年度的本集團綜合財務報表已由本公司核數師根據香港審計準則審核。該等業 績已由審計委員會審閱。 業績摘要 截至12月31日止年度 2022年 2021年 同比變動 人民幣千元 人民幣千元 (%) 收入 359,102 337,925 6.3 毛利 178,137 166,667 6.9 除稅前溢利 72,103 63,712 13.2 年內利潤 65,560 57,664 13.7 ...