Investment Rating - The investment rating for the company is "Neutral" [3][11]. Core Views - The company achieved a revenue of 6.845 billion yuan in 2023, representing an 8.32% year-on-year increase, and net profit of 386.53 million yuan, recovering from a loss of 166.10 million yuan in 2022 [21]. - The company's short video and overseas business are expected to drive growth, with significant contributions from the entertainment content service revenue, which reached 959 million yuan, accounting for 13.36% of total revenue [22]. - The company maintains a strong cash position with approximately 2.36 billion yuan in cash and cash equivalents as of December 31, 2023, and a dividend yield of about 4.5% based on the 2023 annual dividend [4]. Financial Summary - Revenue Forecast: - 2023: 6.845 billion yuan - 2024: 6.945 billion yuan - 2025: 7.238 billion yuan - 2026: 7.576 billion yuan - Year-on-year growth rates: 8.32% in 2023, 1.47% in 2024, 4.22% in 2025, and 4.67% in 2026 [3][8]. - Net Profit Forecast: - 2023: 386.53 million yuan - 2024: 390.47 million yuan - 2025: 402.98 million yuan - 2026: 414.08 million yuan - Year-on-year growth rates: 1.02% in 2024, 3.20% in 2025, and 2.76% in 2026 [3][8]. - Earnings Per Share (EPS): - 2023: 0.20 yuan - 2024: 0.20 yuan - 2025: 0.21 yuan - 2026: 0.21 yuan [3][8]. - Price-to-Earnings (P/E) Ratio: - 2023: 4.08 - 2024: 4.04 - 2025: 3.91 - 2026: 3.81 [3][8]. Cash Flow Summary - Operating Cash Flow: - 2023: 184.01 million yuan - 2024: 480.96 million yuan - 2025: 379.46 million yuan - 2026: 354.88 million yuan [6]. - Net Increase in Cash: - 2023: 634.01 million yuan - 2024: 448.68 million yuan - 2025: 329.75 million yuan - 2026: 292.96 million yuan [6].

Financial Performance - The company reported a profit attributable to shareholders of RMB 386,529 thousand, compared to a loss of RMB 166,101 thousand in the previous period[7]. - Basic earnings per share were RMB 0.21, an increase from a loss of RMB 0.09 per share in the prior year[8]. - The company's revenue for 2023 was approximately RMB 6,844.8 million, an increase of 8.3% compared to RMB 6,319.3 million in 2022[63]. - The net profit for the year was approximately RMB 400.6 million, compared to a loss of RMB 168.5 million in 2022, marking a 337.8% increase[72]. - Operating profit was recorded at RMB 424.2 million, a significant increase from a loss of RMB 46.9 million in 2022, representing a growth of 1,002.7%[75]. - Gross profit increased by 11.3% to approximately RMB 2,833.1 million, with a gross margin of 41.4%, up from 40.3% in 2022[65]. - Total revenue for the year ended December 31, 2023, was RMB 6,844,788 thousand, an increase of 8.3% compared to RMB 6,319,321 thousand in 2022[155]. - The profit attributable to the company's owners for the year was RMB 386,529 thousand, a significant recovery from a loss of RMB 166,101 thousand in the previous year[190]. Assets and Liabilities - Total assets increased to RMB 5,145,709 thousand, up from RMB 4,660,614 thousand year-over-year, representing an increase of approximately 10.4%[9]. - Current assets rose to RMB 3,978,967 thousand, compared to RMB 3,512,767 thousand in the previous year, reflecting a growth of about 13.2%[9]. - Total liabilities increased to RMB 863,866 thousand from RMB 808,172 thousand, indicating a rise of about 6.9%[10]. - Non-current assets totaled RMB 1,166,742 thousand, slightly up from RMB 1,147,847 thousand, showing a modest increase of around 1.6%[9]. - The group's cash and cash equivalents amounted to approximately RMB 2,362.3 million as of December 31, 2023, up from RMB 1,634.7 million as of December 31, 2022[101]. - Trade receivables as of December 31, 2023, amounted to RMB 508,366 thousand, an increase from RMB 444,680 thousand in the previous year[193]. Expenses and Cost Management - Sales and marketing expenses surged by 50.1% to approximately RMB 2,073.8 million, accounting for 30.3% of total revenue, up from 21.9% in 2022[65]. - The group's administrative expenses decreased by 70.6% from approximately RMB 774.3 million in 2022 to about RMB 227.3 million during the reporting period[91]. - Research and development expenses reduced by 30.0% from approximately RMB 388.7 million in 2022 to about RMB 272.0 million during the reporting period[92]. - The company's advertising and promotional expenses increased to RMB 2,031,052 thousand in 2023 from RMB 1,325,312 thousand in 2022, reflecting a strategic push for market expansion[156]. Market and User Engagement - The average monthly active users decreased to 22,808 thousand in 2023 from 26,712 thousand in 2022, representing a decline of 14.6%[46]. - The average revenue per user increased to RMB 25.0 in 2023 from RMB 19.7 in 2022, reflecting a growth of 26.9%[46]. - The company has made significant progress in overseas market expansion, with its social products ranking among the top in Vietnam's social application sales charts[55]. - The company aims to leverage the growth of the global mobile internet and technology to enhance its social entertainment ecosystem for long-term growth[48]. - The group plans to accelerate overseas market expansion, particularly in the Middle East, while developing localized products[84]. Corporate Governance and Compliance - The company is committed to maintaining high levels of corporate governance to enhance shareholder value and accountability[197]. - The board of directors confirmed compliance with the standards of conduct for securities trading during the reporting period[166]. Innovation and Technology - The company is focusing on innovation in its business model, particularly in short dramas and other creative content, to drive new growth momentum[54]. - The company is actively embracing new technologies, including AI applications in live streaming and social interactions, to enhance user experience[59]. - The company has established localized teams in Vietnam and Thailand to enhance content supply and adapt services to local user preferences[56]. Dividends - The company plans to distribute a final dividend of HKD 0.0412 per share, totaling approximately HKD 799 million for the fiscal year ending December 31, 2023[38]. - The board has proposed a final dividend of HKD 0.0412 per share for the year ending December 31, 2023[75]. - The company declared a final dividend of HKD 0.0412 per share, totaling approximately HKD 79.9 million, compared to no dividend in 2022[161].

智通财经APP获悉，映宇宙(03700)涨超11%，截至发稿，涨11.11%，报0.8港元，成交额224.84万港元。 消息面上，据央视财经，近年来，微短剧在各大平台迅速走红。数据显示，2023年，抖音上播放量破亿的微短剧达500部；快手微短剧日均日活跃用户数量达2.7亿。有报告显示，2023年中国微短剧市场规模已攀升至373.9亿元，预计到2027年，中国微短剧市场规模将突破1000亿元大关。 此外，新腕儿联合DataEye近日发布3月第1周短剧热力周榜，从上周上榜短剧来看，热力值最高的是《司令宠妾灭妻，我转身出府嫁少帅》，一周内热力值为2098万，关联方为海南恒系。据悉，海南恒系是北京蜜莱坞100%子公司，也就是属于映宇宙的工作室马甲。第二名《夜空中最亮的星》，关联方美光盛世，也是映宇宙旗下短剧工作室。 ...

Financial Performance - The group reported a net profit of RMB 3,073,508 thousand for the six months ended June 30, 2023, compared to RMB 4,007,621 thousand in the same period of 2022, reflecting a decrease of approximately 23.2%[18]. - The total revenue for the six months ended June 30, 2023, was RMB 3,126,091 thousand, down from RMB 4,061,114 thousand in the previous year, indicating a decline of about 23.0%[18]. - The company reported a profit attributable to shareholders of RMB 190,349,000 for the six months ended June 30, 2023, compared to a loss of RMB 109,915,000 in the same period of 2022[45]. - The basic earnings per share for the company was RMB 0.10 for the six months ended June 30, 2023, compared to a loss per share of RMB 0.06 in the previous year[45]. - The total comprehensive income for the half-year, after tax, amounted to RMB 226,784 thousand, compared to a loss of RMB 69,285 thousand in the previous period[163]. - The profit attributable to the owners of the company was RMB 224,549 thousand, a significant increase from a loss of RMB 68,132 thousand in the same period last year[163]. - The company reported a diluted earnings per share of RMB 0.10, compared to a loss per share of RMB 0.06 in the previous period[162]. Revenue and Costs - Revenue for the six months ended June 30, 2023, was RMB 3,126,091 thousand, a decrease of 23.0% compared to RMB 4,061,114 thousand for the same period in 2022[83]. - Gross profit for the same period was RMB 1,330,586 thousand, reflecting a 23.0% decline from RMB 1,728,010 thousand year-on-year[83]. - The group's sales cost for the reporting period was approximately RMB 1,795.5 million, down 23.0% from RMB 2,333.1 million in the same period of 2022, mainly due to reduced revenue[102]. - The cost of goods sold for the period was RMB 102,504 thousand, a substantial increase from RMB 2,035 thousand in the previous year, indicating a significant rise in operational costs[1]. - Employee benefits expenses were RMB 330,010 thousand, down from RMB 388,240 thousand, reflecting a decrease of about 15.0%[1]. Cash Flow and Liquidity - For the six months ended June 30, 2023, the net cash inflow from operating activities was RMB 162,305 thousand, a decrease from RMB 380,711 thousand in the same period of 2022, representing a decline of approximately 57.4%[1]. - The net cash outflow from investing activities was RMB 93,324 thousand, compared to RMB 190,957 thousand in the previous year, indicating a reduction of about 51.1%[1]. - The net cash outflow from financing activities was RMB 3,222 thousand, significantly improved from RMB 41,274 thousand in the same period of 2022, reflecting a decrease of approximately 92.2%[1]. - The company experienced a net increase in cash and cash equivalents of RMB 65,759 thousand, compared to an increase of RMB 148,480 thousand in the same period of 2022, indicating a decline of approximately 55.7%[1]. - The company’s cash and cash equivalents at the beginning of the period were RMB 1,634,708 thousand, down from RMB 1,993,306 thousand in the previous year, representing a decrease of about 18.0%[1]. - The company maintains a current ratio of 4.7 and a debt ratio of 0.2 as of June 30, 2023, indicating strong liquidity and low leverage[141]. Assets and Liabilities - The company's net book value as of June 30, 2023, was RMB 66,029,000, an increase from RMB 62,779,000 as of December 31, 2022[37]. - The total fair value of financial assets as of June 30, 2023, was RMB 1,468,294,000, compared to RMB 1,477,848,000 as of December 31, 2022[58]. - As of June 30, 2023, total liabilities stood at RMB 865,107 thousand, an increase from RMB 808,172 thousand as of December 31, 2022[165]. - The total equity and liabilities amounted to RMB 4,959,703 thousand, compared to RMB 4,660,614 thousand at the end of the previous year[165]. - The company reported restricted cash totaling RMB 92,248,000 as of June 30, 2023, with RMB 72,895,000 frozen due to regulatory investigations[63]. Financial Assets and Investments - The fair value of non-current financial assets increased to RMB 162,841 thousand as of June 30, 2023, from RMB 155,367 thousand at the beginning of the year, representing a growth of approximately 4.8%[7]. - The group classified financial assets at fair value, with first-level assets being investments in listed company shares and second-level assets being financial products with net value quotes from financial institutions[5]. - The group’s investment in financial products primarily comes from banks and financial institutions in China, with fair value changes recorded in the consolidated income statement[5]. - The group reported a fair value gain of RMB 43,524 thousand from financial assets measured at fair value through profit or loss for the six months ended June 30, 2023[32]. - The group’s financial risk management includes the use of observable market data for valuation techniques, minimizing reliance on specific entity estimates[4]. Operational Strategies and Innovations - The company continues to enhance the "Inke Live" platform ecosystem and optimize operational strategies to improve profitability in live streaming[90]. - The company is focusing on product innovation and expanding its social product matrix to meet diverse user needs[90]. - The company plans to maintain a proactive approach to refine existing product business models while exploring global development opportunities[96]. - The company has successfully validated business models for several projects in its innovation matrix since 2022, particularly in the short drama sector[97]. - The group aims to explore overseas opportunities and accelerate business model validation in the global social business market, leveraging its experience in audio-visual social interactions[107]. - The group plans to harness technological advancements, particularly in AIGC, to innovate in the interactive social and entertainment sectors, targeting areas like AI music and the metaverse[108]. Employee and Administrative Expenses - The company has implemented a systematic training program to enhance employee skills and support sustainable development, with 1,552 full-time employees as of June 30, 2023[149]. - The group's administrative expenses decreased by 83.8% to approximately RMB 100.1 million from RMB 616.7 million in the same period of 2022, primarily due to the absence of goodwill impairment provisions[123]. Dividends and Shareholder Returns - The company did not declare or pay any dividends for the periods ended June 30, 2023, and 2022[47]. - The company did not declare any interim dividends during the reporting period[174].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,126.1 million, a decrease of 23.0% compared to the same period in 2022[2] - Gross profit for the six months ended June 30, 2023, was RMB 1,330.6 million, a decrease of 23.0% compared to the same period in 2022[2] - Operating profit for the six months ended June 30, 2023, was RMB 202.0 million, a significant increase of 641.3% compared to the same period in 2022[2] - The company recorded a profit of approximately RMB 192.6 million, a turnaround from a loss of RMB 111.1 million in the same period last year[36] - Adjusted net profit, which excludes non-cash share-based compensation expenses, was RMB 205.7 million, compared to RMB 402.2 million in the previous year[38] - Revenue for the period was RMB 3.13 billion, with a gross profit of RMB 1.33 billion, down from RMB 4.06 billion and RMB 1.73 billion respectively in the previous year[46] - Operating profit was RMB 202.0 million, a significant increase from RMB 27.2 million in the same period last year[46] - The company's comprehensive income attributable to equity holders was RMB 224.5 million, compared to a loss of RMB 68.1 million in the previous year[48] - The company's revenue for the reporting period was approximately RMB 3,126.1 million, a decrease of 23.0% compared to RMB 4,061.1 million in the same period last year, but a sequential increase of 38.4%[58] - The company's gross profit for the reporting period was approximately RMB 1,330.6 million, a decrease of 23.0% compared to RMB 1,728.0 million in the same period last year, with the gross margin remaining stable at 42.6%[60] - The company reported a net profit attributable to shareholders of RMB 226.8 million for the first half of 2023, compared to a net loss of RMB 69.3 million in the same period of 2022[79] - Basic earnings per share were RMB 0.10 for the first half of 2023, compared to a loss per share of RMB 0.06 in the same period of 2022[81] - Net profit attributable to owners of the company was RMB 190,349 thousand in H1 2023, compared to a loss of RMB 109,915 thousand in H1 2022[117] - Basic earnings per share were RMB 0.10 in H1 2023, versus a loss per share of RMB 0.06 in H1 2022[117] User Metrics - Monthly active users (MAU) for the six months ended June 30, 2023, were 28,094 thousand, a decrease of 5.7% compared to the same period in 2022[3] - Average revenue per user (ARPU) for the six months ended June 30, 2023, was RMB 18.5, a decrease of 18.5% compared to the same period in 2022[3] Expenses and Costs - Sales and marketing expenses for the six months ended June 30, 2023, increased by 11.3% to RMB 962.0 million compared to the same period in 2022[28] - Administrative expenses for the six months ended June 30, 2023, decreased by 83.8% to RMB 100.1 million compared to the same period in 2022, primarily due to the absence of goodwill impairment provisions[29] - R&D expenses for the six months ended June 30, 2023, decreased by 24.3% to RMB 142.5 million compared to the same period in 2022, mainly due to optimization of employee structure[31] - Capital expenditures for the six months ended June 30, 2023, were approximately RMB 20.3 million, compared to RMB 7.6 million in the same period in 2022[20] - Income tax expenses decreased by 61.3% to approximately RMB 34.7 million, down from RMB 89.7 million in the previous year, primarily due to a decrease in net operating profit[35] Investments and Financial Assets - The company's financial assets at fair value through profit or loss as of June 30, 2023, were approximately RMB 1,468.3 million, slightly down from RMB 1,477.8 million as of December 31, 2022[7] - The company's share of profits from equity-accounted investments was approximately RMB 14.2 million, a significant improvement from a loss of RMB 53.8 million in the same period last year, representing a 126.3% increase[34] Cash and Liquidity - Cash and cash equivalents increased to RMB 1,717.5 million as of June 30, 2023, up from RMB 1,634.7 million as of December 31, 2022, with RMB 1,565.8 million denominated in RMB and RMB 151.7 million in other currencies (primarily USD)[72] - Restricted cash balance was RMB 72.9 million as of June 30, 2023, with RMB 26.1 million unfrozen after the balance sheet date[72] - Approximately RMB 72.9 million of the company's bank deposits were frozen due to investigations by local regulators, with RMB 26.1 million subsequently unfrozen after the balance sheet date[42] Business Strategy and Growth - The company continues to enhance its live streaming platform ecosystem, improving operational strategies and product iteration efficiency, leading to increased profitability in the live streaming business[49] - The company is expanding its offline presence for its dating brand, focusing on 90s singles, and has successfully organized large-scale dating events to enhance brand influence and fulfill corporate social responsibility[51] - The company's short drama business has achieved rapid growth in market size and user base, positioning its products in the top tier of the industry[52] - The company plans to explore new opportunities in overseas markets, focusing on audio-video social interactions and aiming to expand user scale and product penetration[54] - The company is leveraging AI and AIGC technologies to innovate in interactive social, AI music, AI scripts, AI operations, digital live streaming, and the metaverse, aiming to transform the entertainment industry[55] Assets and Liabilities - The company's total assets as of June 30, 2023, were RMB 4,959.7 million, with current assets totaling RMB 3,875.3 million and non-current assets at RMB 1,084.4 million[62] - The company's current ratio (current assets to current liabilities) was 4.7 as of June 30, 2023, with a debt-to-equity ratio (total liabilities to total equity) of 0.2[70] - Trade receivables were primarily denominated in RMB, with credit terms ranging from 1 to 3 months[103] - Accounts payable increased to RMB 463.2 million as of June 30, 2023, up from RMB 444.7 million as of December 31, 2022[104] - Trade receivables decreased to RMB 58,066 thousand as of June 30, 2023, from RMB 64,059 thousand as of December 31, 2022[122] Revenue Breakdown - Total revenue for the first half of 2023 was RMB 3,126,091 thousand, a decrease from RMB 4,061,114 thousand in the same period of 2022[114] - Value-added services revenue dropped to RMB 2,314,679 thousand in H1 2023 from RMB 3,912,337 thousand in H1 2022[114] - Content services revenue, newly reported in 2023, amounted to RMB 472,199 thousand[114] - Other revenue increased to RMB 339,213 thousand in H1 2023 from RMB 148,777 thousand in H1 2022[114] Corporate Governance and Compliance - The company maintained high corporate governance standards, with the Chairman and CEO roles held by the same individual, which the Board believes benefits the group's management[133] - The company has established an audit committee in accordance with Listing Rule 3.21 and the Corporate Governance Code[135] - The audit committee consists of two independent non-executive directors, Mr. Cui Dawei and Dr. Li Hui, and one non-executive director, Mr. Liu Xiaosong, with Mr. Cui Dawei serving as the chairman[135] - The announcement is issued by the order of the board of directors of Inkeverse Group Limited, with Mr. Feng Yousheng as the chairman and executive director[137] Reporting and Disclosure - The interim results announcement is available on the Hong Kong Exchanges and Clearing Limited website (www.hkexnews.hk) and the company's website (www.inkeverse.com)[136] - The interim report for the six months ended June 30, 2023, will be sent to shareholders and published on the Hong Kong Exchanges and Clearing Limited website and the company's website in due course[136] - The company adopted new and revised accounting standards during the reporting period, with no significant changes in major judgments and estimates compared to the previous year[113] - The company did not declare or pay any dividends for the periods ending June 30, 2023, and June 30, 2022[121] Equity and Shareholder Information - Total equity attributable to shareholders increased to RMB 4,088.1 million as of June 30, 2023, from RMB 3,853.7 million as of December 31, 2022[85]

User Metrics and Revenue Performance - Monthly average active users (MAU) decreased by 37.6% to 26,712 thousand in 2022 compared to 42,802 thousand in 2021[9] - Average revenue per user per month (ARPU) increased by 10.1% to RMB 19.7 in 2022 from RMB 17.9 in 2021[9] - Total revenue decreased to RMB 6,319,321 thousand in 2022 from RMB 9,175,595 thousand in 2021, a decline of 31.1%[18] - Revenue decreased by 31.1% to RMB 6,319.3 million in 2022 compared to RMB 9,175.6 million in 2021[52] - The company's revenue in 2022 was approximately RMB 6,319.3 million, a decrease of 31.1% compared to RMB 9,175.6 million in 2021, primarily due to intensified industry competition and more cautious operational strategies[32] Profitability and Losses - Gross profit decreased to RMB 2,546,492 thousand in 2022 from RMB 3,305,099 thousand in 2021, a decline of 22.9%[18] - Net loss for the year was RMB 168,459 thousand in 2022 compared to a net profit of RMB 433,009 thousand in 2021[18] - Gross profit decreased by 23.0% from RMB 3,305.1 million in 2021 to RMB 2,546.5 million in 2022, with the gross profit margin increasing from 36.0% to 40.3% due to refined operational strategies and product structure optimization[34] - The company recorded a net loss of approximately RMB 168.5 million in 2022, a decrease of 138.9% compared to a net profit of RMB 433.0 million in 2021[38] - Net loss attributable to shareholders was RMB 168.5 million in 2022, a 138.9% decline from a net profit of RMB 433.0 million in 2021[52] - Adjusted net profit decreased to RMB 387.7 million in 2022 from RMB 482.5 million in 2021, including a goodwill impairment loss of RMB 512.8 million[61] Assets and Liabilities - Total assets decreased to RMB 4,660,614 thousand in 2022 from RMB 5,238,392 thousand in 2021, a decline of 11.0%[18] - Total liabilities decreased to RMB 808,172 thousand in 2022 from RMB 1,307,244 thousand in 2021, a decline of 38.2%[18] - The company's current ratio improved to 4.6 in 2022 from 3.1 in 2021, and the debt-to-equity ratio decreased to 0.2 from 0.3, indicating optimized asset structure[81] - Cash and cash equivalents stood at RMB 1,634.7 million as of December 31, 2022, compared to RMB 1,993.3 million in 2021, with RMB 1,321.3 million denominated in CNY and RMB 313.4 million in other currencies (primarily USD)[81] - Financial assets at fair value through profit or loss totaled RMB 1,477.8 million in 2022, up from RMB 972.8 million in 2021, with significant increases in fund investments[83] Operational Strategies and Innovations - The company continued to optimize the "Inke Live" platform ecosystem, enhancing the host incubation and growth system, and improving user experience[11] - The company signed a digital human "Yingying" and explored new formats such as virtual live streaming[11] - The company focused on the "interactive entertainment" field, exploring new application scenarios and improving operational efficiency[10] - The company will continue to invest in emerging technologies such as AI, smart technology, and communications to drive product innovation and create new growth opportunities[27] Expenses and Costs - Sales and promotion expenses decreased by 37.6% from RMB 2,214.4 million in 2021 to RMB 1,381.3 million in 2022, accounting for 21.9% of revenue compared to 24.1% in 2021[34] - Administrative expenses surged by 221.0% to RMB 774.3 million, primarily due to a goodwill impairment provision of RMB 512.8 million for Social Network Technology Co., Ltd.[56] - R&D expenses decreased by 6.6% from RMB 416.0 million in 2021 to RMB 388.7 million in 2022, primarily due to reduced employee costs[76] - Other net losses increased from RMB 44.9 million in 2021 to RMB 46.7 million in 2022, mainly due to increased fair value losses on financial assets at fair value through profit or loss[77] - Net financial income decreased by 56.2% from RMB 16.7 million in 2021 to RMB 7.3 million in 2022, driven by reduced fixed deposits and bank cash balances[78] Overseas Expansion and Market Strategy - The company's overseas business has shown rapid growth, with initial validation of a commercial closed-loop in certain regions[24] - The company plans to accelerate the expansion of its offline matchmaking business in other cities, following the successful establishment of stores in Beijing and Shanghai[23] - The company will focus on expanding overseas markets, leveraging its competitive barriers in the pan-entertainment sector and replicating successful domestic business models[26] Financial Instruments and Investments - The company's financial asset impairment losses increased from RMB 8.4 million in 2021 to RMB 50.2 million in 2022, mainly due to expected credit impairment losses on other receivables and trade receivables[35] - The company's share of losses from associates and joint ventures accounted for using the equity method was approximately RMB 51.2 million in 2022, compared to RMB 0.4 million in 2021[37] - Financial assets at fair value through profit or loss increased to RMB 1,477.8 million in 2022, including RMB 1,322.5 million in wealth management products[63] - Investments in financial products are primarily for treasury management purposes, aiming to maximize returns on unused funds while ensuring sufficient liquidity for business needs[83] Share Repurchases and Equity Plans - The company repurchased 563,000 shares on March 28, 2022, at a price range of HKD 1.50 to HKD 1.52, with a total cost of HKD 847,490[136] - The company repurchased 300,000 shares on March 29, 2022, at a price range of HKD 1.54 to HKD 1.56, with a total cost of HKD 464,640[136] - The company granted 60 million stock options on May 28, 2021, representing approximately 3.0% of the issued shares as of the report date[138] - The stock options granted on May 28, 2021, have a vesting schedule of 25% on May 28, 2022, 50% on May 28, 2023, 75% on May 28, 2024, and 100% on May 28, 2025[140] - The total number of shares available for issuance under the Restricted Share Unit (RSU) plan is 100,778,200, representing approximately 5.2% of the company's issued share capital as of the report date[143] - The company repurchased a total of 863,000 shares on the stock exchange at a total cost of HKD 1,312,130, with the highest price paid per share being HKD 1.56 and the lowest being HKD 1.50[156][157] - The total number of shares available for issuance under the share option plan is 201,556,400, representing approximately 10.4% of the company's issued share capital as of the report date[162] - The remaining term of the share option plan is approximately five years and three months[162] - The company's restricted share unit plan allows for the issuance of shares to directors, senior management, and employees, with a total of 289,307,258 and 271,990,069 shares available for grant under all share plans as of January 1, 2022, and December 31, 2022, respectively[173] - No restricted share units were granted under the 2022 restricted share unit plan during the year ended December 31, 2022[172] - The trustee purchased a total of 27,600,000 shares on the Hong Kong Stock Exchange during the year ended December 31, 2022[186] - The weighted average closing price of shares before the vesting date was HKD 1.38 per share[188] - The 2022 Restricted Share Unit Plan allows for the grant of up to 96,872,100 shares, representing approximately 5.0% of the company's issued share capital as of the report date[192] - The 2022 Restricted Share Unit Plan has a remaining term of approximately nine years and two months[192] - No new shares were granted under the share option plan, restricted share unit plan, or 2022 Restricted Share Unit Plan during the year ended December 31, 2022[194] - The vesting schedule for restricted share units includes multiple tranches with varying percentages and dates, such as 50% vesting on February 1, 2019, and 25% vesting on August 1, 2019[188] - The 2022 Restricted Share Unit Plan aims to incentivize and retain skilled and experienced personnel by offering them the opportunity to own equity in the company[190] - The company's Remuneration Committee has reviewed and confirmed that the terms of the share option plan, restricted share unit plan, and 2022 Restricted Share Unit Plan remain valid and applicable[193] - The 2022 Restricted Share Unit Plan was adopted by the board on May 12, 2022, and will operate alongside other existing or future share incentive plans[189] - The vesting notice will confirm the extent to which vesting criteria, conditions, and schedules have been met, as well as the number of shares involved[191] Corporate Governance and Compliance - The company has complied with all relevant Chinese laws and regulations and holds all necessary licenses, approvals, and permits for its operations in China[130] - The company has no significant legal or regulatory violations during the reporting period and maintains compliance with environmental and occupational health and safety laws[124][125] - The company's board has the discretion to allocate profits to reserves for various purposes, including addressing claims, liabilities, or balancing dividends[106] - The company has not recognized any provisions for ongoing investigations, as no present obligation is likely to arise based on legal counsel's opinion[84] - The company has not mortgaged any assets as of December 31, 2022[85] Employee and Talent Management - The company has 1,531 full-time employees, with 515 dedicated to technology and R&D[86] - The company has implemented a systematic talent training and development program to enhance employee skills and support sustainable growth[107] Market and Competitive Challenges - The company faces uncertainties in acquiring and retaining users cost-effectively, operating in a competitive market, and navigating regulatory challenges in the live streaming and internet industries[104][105] - The company faces uncertainties related to negative publicity regarding its business model, platform content, or management, which could impact its future prospects[130] Shareholder and Dividend Policy - The company does not recommend paying a final dividend for the fiscal year ending December 31, 2022[110] - The company's board reviewed the dividend policy during the year and deemed it effective[149] - The company focuses on maximizing shareholder returns and aims to achieve sustainable growth by concentrating on its core business[129] Supply Chain and Procurement - The company's largest supplier accounted for approximately 2.3% of total procurement in 2022, while the top five suppliers collectively accounted for about 8.1% of total procurement[128] - The company's supply chain includes independent third-party suppliers, with no significant beneficial interests held by directors, their close associates, or major shareholders in the top five suppliers[128] Shareholder Structure and Ownership - Mr. Feng Yousheng holds 358,798,000 shares through Fantastic Live Holdings Limited, representing an approximate 18.51% stake in the company[199] - Mr. Feng Yousheng also holds 30,000,000 unexercised share options under the company's share option scheme[198] - Mr. Liu Xiaosong indirectly holds a 70.11% stake in Shenzhen Kua Tonglian Technology Co., Ltd., which owns 22.51% of Duomi Online[198] - Mr. Liu Xiaosong directly holds a 28.71% stake in Duomi Online, which owns 250,000,000 shares through Feiyang Hong Kong Limited[198] - Mr. Hou Guangling holds 80,409,000 shares through Horizon Live Holdings Limited, representing an approximate 4.15% stake in the company[199] - Mr. Hou Guangling also holds 20,000,000 unexercised share options under the company's share option scheme[198] Financial Statements and Notes - The company's property, plant, and equipment changes during the year are detailed in the consolidated financial statements note 15[151] - The company's share capital changes during the year are detailed in the consolidated financial statements note 26[152] - The combined total revenue of Beijing Milaiwu, Canchen Yingchao, and Lingxiao Lansheng for the year ended December 31, 2022, was approximately RMB 7,279.2 million[200] - The combined total assets of Beijing Milaiwu, Canchen Yingchao, and Lingxiao Lansheng as of December 31, 2022, were approximately RMB 1,881.4 million[200] - Canchen Yingchao and Lingxiao Lansheng had no substantial business operations during the year ended December 31, 2022[200] Miscellaneous - The company's donations for the year ended December 31, 2022, amounted to RMB 1.4 million[154] - The company's functional currency is USD, while its subsidiaries in China operate in RMB, and it manages foreign exchange risk through natural hedging and forward contracts[85] - The company's largest customer accounted for approximately 0.19% of total revenue, while the top five customers accounted for 0.54% of total revenue in 2022[102] - The company operates primarily in China, engaging in mobile live-streaming platform services, including value-added telecommunications, internet culture, online audiovisual, and performance brokerage services[123]

Financial Performance - The company's revenue for 2022 was approximately RMB 6,319.3 million, a decrease of 31.1% compared to RMB 9,175.6 million in 2021, primarily due to intensified industry competition and a more cautious operational strategy[2]. - Gross profit decreased from approximately RMB 3,305.1 million in 2021 to approximately RMB 2,546.5 million in 2022, representing a decline of 23.0%, while the gross profit margin increased from 36.0% in 2021 to 40.3% in 2022[3]. - The net loss for the year was RMB 168,459 thousand, compared to a profit of RMB 433,009 thousand in 2021, indicating a significant decline in profitability[9]. - The basic loss per share attributable to shareholders was RMB (0.09), compared to earnings of RMB 0.22 per share in the previous year[10]. - The total comprehensive loss for the year amounted to RMB (90,711) thousand, a significant decrease from RMB 423,822 thousand in 2021[1]. - Operating loss for the year was RMB (46,987) thousand, compared to an operating profit of RMB 457,010 thousand in 2021[7]. - Revenue for the year ended December 31, 2022, was RMB 6,367,267 thousand, a decrease of 27% from RMB 8,750,402 thousand in 2021[45]. - The adjusted net profit for 2022 was RMB 387.7 million, down from RMB 482.5 million in 2021, after accounting for share-based compensation and goodwill impairment[87]. - The group's net loss for the year was approximately RMB 168.5 million, a decrease of 138.9% compared to a profit of RMB 433.0 million in 2021[86]. - The group's other income decreased by 37.9% from RMB 76.8 million in 2021 to RMB 47.6 million in 2022, primarily due to a reduction in tax refunds[79]. Assets and Liabilities - The total equity as of December 31, 2022, was RMB 3,852,442 thousand, a decrease from RMB 3,931,148 thousand in 2021[12]. - Total liabilities decreased from RMB 1,307,244 thousand in 2021 to RMB 808,172 thousand in 2022, reflecting a reduction in financial obligations[12]. - The total assets as of December 31, 2022, were RMB 4,660,614 thousand, a decrease from RMB 5,238,392 thousand as of December 31, 2021[155]. - The group's non-current assets totaled RMB 1,147,847 thousand as of December 31, 2022, down from RMB 1,719,104 thousand in 2021[155]. - The company had a total of RMB 444,680 thousand in trade payables as of December 31, 2022, down from RMB 669,342 thousand in 2021[25]. Impairments and Expenses - The company reported a net financial asset impairment loss of RMB (50,248) thousand, compared to RMB (8,379) thousand in the previous year[7]. - The company incurred goodwill and other intangible asset impairment of RMB 518,661 thousand in 2022, compared to RMB 15,916 thousand in 2021[45]. - The group's administrative expenses increased by 221.0% from approximately RMB 241.2 million in 2021 to approximately RMB 774.3 million in 2022, primarily due to a goodwill impairment provision of approximately RMB 512.8 million related to Social Network Technology Co., Ltd.[94]. - Employee benefits expenses for 2022 were RMB 781,045 thousand, a decrease of 9% from RMB 857,871 thousand in 2021[45]. - The company reported a profit tax expense of RMB 77,608 thousand for 2022, up 92% from RMB 40,313 thousand in 2021[21]. User Metrics and Market Strategy - Monthly average active users decreased to 26,712 thousand, a decline of 37.6% from 42,802 thousand in 2021, while monthly average revenue per user increased by 10.1% to RMB 19.7[117]. - The company plans to expand its offline matchmaking services in more cities, leveraging the recovery of the macro economy[121]. - The group is focusing on expanding its overseas market presence, leveraging successful domestic experiences and adapting to local cultures and practices[108]. - The group aims to enhance user experience and profitability through refined operations and innovative content on its "Yingke Live" platform[105]. - The group is exploring new business models, including virtual live streaming, to capture user demand and enhance platform interactivity[107]. Research and Development - Research and development expenses decreased by 6.6% from RMB 416.0 million in 2021 to RMB 388.7 million in 2022, primarily due to reduced employee costs[77]. - The group is focused on the iteration and development of emerging technologies such as AI and communication, aiming to accelerate the launch of competitive new products[109]. - The group is focusing on innovative product development in response to emerging demands in the entertainment sector, particularly around audio-visual interaction[123]. Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code during the year ended December 31, 2022[30]. - The company has adopted a new restricted share unit plan as of May 12, 2022, but no restricted share units were granted under this plan by December 31, 2022[28]. - The company has adopted the standards set forth in the Listing Rules Appendix 10 regarding the conduct of securities transactions by directors, confirming compliance for the year ended December 31, 2022[177]. - The board believes that having the same person serve as both chairman and CEO is beneficial for the group's management[181]. - The company has a diverse board composition, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of power and authority[181].

Financial Performance - Total revenue for the first half of 2022 was approximately RMB 4,061.1 million, a year-on-year increase of 0.7% compared to RMB 4,032.2 million in the same period of 2021[12]. - Adjusted net profit for the first half of 2022 was approximately RMB 402.2 million, representing a significant increase of 150.8% compared to RMB 160.3 million in the same period of 2021[12]. - The company reported a net loss of approximately RMB 111.1 million for the first half of 2022, a decline of 178.0% compared to a profit of RMB 142.3 million in the same period of 2021[12]. - Gross profit for the first half of 2022 was RMB 1,728.0 million, reflecting a year-on-year increase of 22.8% from RMB 1,406.7 million in the same period of 2021[12]. - The group's revenue for the six months ended June 30, 2022, was approximately RMB 4,061.1 million, an increase of 0.7% compared to RMB 4,032.2 million for the same period in 2021[28]. - The group's gross profit for the same period was approximately RMB 1,728.0 million, representing a 22.8% increase from RMB 1,406.7 million in 2021, with a gross margin improvement from 34.9% to 42.6%[30]. - The net loss attributable to the company’s owners for the six months was RMB 109,915 thousand, compared to a profit of RMB 123,076 thousand in the same period last year[65]. - The total expenses for the six months ended June 30, 2022, were RMB 4,027,619 thousand, an increase from RMB 3,933,665 thousand in the same period of 2021, reflecting a rise of approximately 2.4%[124]. User Engagement - The number of monthly active users decreased by 35.8% year-on-year to 29,799 thousand from 46,428 thousand in the same period of 2021[14]. - The average revenue per user (ARPU) increased by 44.6% year-on-year to RMB 22.7 from RMB 15.7 in the same period of 2021[14]. Strategic Focus - The company plans to focus on the overseas entertainment sector in the second half of 2022, leveraging operational experience to penetrate new markets[17]. - The group plans to focus on expanding overseas markets, having already launched reading and social products in regions like Europe, America, and Southeast Asia[24]. - The group aims to explore the metaverse ecosystem further, with plans to develop more immersive interactive entertainment scenarios in the second half of 2022[25]. - The company underwent a brand upgrade in June 2022, rebranding to Inkeverse Group Limited to enter the metaverse market[16]. - The company aims to enrich and upgrade its products with metaverse elements and quickly enter the emerging Web3.0 field[17]. Expenses and Cost Management - Sales and marketing expenses decreased by 14.6% to approximately RMB 864.5 million, down from RMB 1,012.2 million in the previous year[31]. - Administrative expenses increased significantly by 561.0% to approximately RMB 616.7 million, primarily due to goodwill impairment of RMB 486.0 million[32]. - The sales cost for the six months ended June 30, 2022, was approximately RMB 2,333.1 million, a decrease of 11.1% from RMB 2,625.5 million in the previous year, resulting in a sales cost percentage of 57.4%[29]. - Research and development expenses were RMB 188,199 thousand, a decrease of 7.3% from RMB 202,914 thousand in the previous year[63]. - The company incurred a significant increase in advertising and promotion expenses, totaling RMB 836,394 thousand for the six months ended June 30, 2022, down from RMB 989,957 thousand in the same period of 2021, a decrease of about 15.5%[124]. Cash and Financial Position - As of June 30, 2022, the group had cash and cash equivalents of approximately RMB 2,163.2 million, an increase from RMB 1,993.3 million as of December 31, 2021[46]. - The group's current ratio was 4.0 and the debt ratio was 0.3 as of June 30, 2022, compared to 3.1 and 0.3 respectively as of December 31, 2021[45]. - The group’s capital expenditure for the six months ended June 30, 2022, was approximately RMB 7.6 million, significantly lower than RMB 218.6 million for the same period in 2021[52]. - The total cash and cash equivalents at the end of June 30, 2022, reached RMB 2,163,185 thousand, compared to RMB 1,093,607 thousand at the end of June 30, 2021, indicating a growth of approximately 97.7%[79]. - The company paid income tax of RMB 68,225 thousand in the first half of 2022, which is significantly higher than RMB 21,060 thousand in the same period of 2021[76]. - The company reported a net cash outflow from investing activities of RMB 190,957 thousand for the six months ended June 30, 2022, compared to RMB 233,395 thousand in the same period of 2021[78]. - The company incurred a loss of RMB 99,039 thousand in accumulated losses as of June 30, 2022, compared to RMB 281,429 thousand as of June 30, 2021[74]. Financial Assets and Liabilities - As of June 30, 2022, the group had financial assets at fair value through profit or loss amounting to approximately RMB 1,160.5 million, up from RMB 972.8 million as of December 31, 2021[47]. - The fair value changes of financial assets are recorded in the consolidated income statement under "other losses, net"[97]. - The total liabilities decreased to RMB 1,010,001 thousand from RMB 1,307,244 thousand, indicating a reduction of 22.7%[70]. - The company's total liabilities for accounts payable decreased to RMB 306,651,000 from RMB 499,141,000[161]. - The company’s total liabilities decreased to RMB 3,873,173 thousand as of June 30, 2022, from RMB 3,644,875 thousand as of January 1, 2022[74]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2022[60]. - The company did not declare or pay any dividends for the periods ended June 30, 2022, and 2021[136]. - The company repurchased shares amounting to RMB 15,778 thousand in the first half of 2022, compared to RMB 3,627 thousand in the same period of 2021[79]. - The weighted average number of ordinary shares issued was 1,857,624,000 shares for the six months ended June 30, 2022, slightly down from 1,869,020,000 shares in 2021[133]. - The diluted loss per share was RMB (0.06) for the six months ended June 30, 2022, compared to earnings of RMB 0.07 per share in the previous year[133]. Management and Governance - The total compensation for key management personnel was RMB 4,522,000 for the six months ended June 30, 2022, compared to RMB 4,929,000 for the same period in 2021, showing a decrease of approximately 8.2%[180]. - The company has no management contracts related to its business during the reporting period[193]. - The company aims to align the interests of its employees with its own through the stock option and restricted share unit plans[194].

Financial Data and Key Metrics Changes - The total revenue for the first half of 2022 reached 4.06 billion RMB, remaining stable compared to the previous year [2][12] - Adjusted net profit for the same period was 400 million RMB, representing a 150% increase year-on-year [2][14] - Gross margin improved to 42.6%, up from 34.9% in the previous year [14] Business Line Data and Key Metrics Changes - The social segment accounted for approximately 70% of total revenue, showing an increase, while the live streaming segment decreased to about 22% [12] - Overseas revenue grew to 8.6 million RMB, a 40% increase year-on-year, although it remains a small portion of total revenue [13] Market Data and Key Metrics Changes - The company is focusing on expanding its overseas market presence, particularly in Southeast Asia and the Middle East, with ongoing product development in these regions [9][19] - The company has observed a shift in user preferences, particularly among younger demographics, leading to new product offerings in social and dating services [6][7] Company Strategy and Development Direction - The strategic focus is on leveraging social advantages to enhance metaverse technology and create diverse social scenarios [4][5] - The company aims to deepen its overseas market penetration while optimizing domestic operations, anticipating a contraction in domestic business by 20-30% [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and the impact of the pandemic on operations, emphasizing a cautious approach to growth [2][23] - The company is optimistic about the long-term potential of the metaverse, despite its current early-stage development [10][20] Other Important Information - The company maintains a healthy cash position of 2.16 billion RMB, which will support future investments in overseas and metaverse initiatives [15][24] - A significant non-cash impairment charge of 500 million RMB was recorded, affecting administrative expenses but not cash flow [14] Q&A Session Summary Question: What are the future strategies for the social business segment? - Management indicated that adjustments were made due to economic conditions, focusing on enhancing user experience and monetization strategies in the social segment [17] Question: What is the current status of overseas products? - The company is in the process of refining product prototypes for overseas markets, with several new products expected to launch soon [19] Question: How does the company view the development of the metaverse market? - Management expressed a cautious but optimistic outlook, emphasizing the need for patience and continued exploration of new technologies [20][21] Question: What are the revenue and profit outlooks for the second half of the year? - The company anticipates a revenue contraction of 20-30% for the year, focusing resources on overseas markets [23] Question: Why is the company not considering share buybacks or dividends despite having substantial cash reserves? - Management explained that the focus is on investing in overseas expansion and metaverse initiatives rather than returning cash to shareholders at this time [24]

Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 9,175.6 million, representing an 85.4% increase year-on-year[10] - Net profit for the year was RMB 433.0 million, reflecting a year-on-year increase of 113.1%[16] - Gross profit for the year was RMB 3,305.1 million, with a gross margin of approximately 36%[10] - Operating profit amounted to RMB 457.0 million, showing a substantial increase from RMB 54.7 million in the previous year[10] - The company's revenue for 2021 was approximately RMB 9,175.6 million, an increase of 85.4% compared to RMB 4,949.4 million in 2020, driven by the successful expansion of its product matrix and commercialization efforts[42] - Gross profit increased by 176.1% from RMB 1,197.1 million in 2020 to RMB 3,305.1 million in 2021, with the gross margin improving from 24.2% to 36.0%[44] - Operating profit surged by 735.0% from RMB 54.7 million in 2020 to RMB 457.0 million in 2021, with the operating margin increasing from 1.1% to 5.0%[52] - Net profit for the year was approximately RMB 433.0 million, a 113.1% increase from RMB 203.2 million in 2020[55] User Engagement - Monthly average active users reached 42.80 million, up 17.4% compared to the previous year[14] - Average revenue per user (ARPU) increased to RMB 17.9, a significant rise of 58.4% year-on-year[14] - The matchmaking app "Duiyuan" achieved over 20 million matches in the year, with active matchmakers exceeding 10,000[25] Revenue Sources - Revenue from social products amounted to RMB 5,743.9 million, accounting for 62.6% of total revenue[24] - The live streaming and matchmaking products generated revenues of RMB 2,563.2 million and RMB 614.1 million, respectively, representing 27.9% and 6.7% of total revenue[19] Research and Development - Research and development expenses were RMB 415.9 million, up from RMB 334.4 million in 2020[10] - The group is committed to increasing R&D investment in cutting-edge technologies such as AI and audio-visual interaction[31] - Research and development expenses increased by 24.4% from RMB 334.4 million in 2020 to RMB 416.0 million in 2021, representing 4.5% of revenue, down from 6.8%[47] Market Strategy - The company plans to continue expanding its market presence and investing in new technologies and products[10] - The group plans to continue its matrix product strategy in 2022, focusing on immersive user experiences and expanding into both online and offline social interactions[20] - The group aims to enhance its overseas market presence by leveraging its leading technology and innovative business models[29] Financial Position - Total assets as of December 31, 2021, were RMB 5,238.4 million, compared to RMB 4,669.6 million in 2020[10] - The company reported a net asset value of RMB 3,931.1 million, an increase from RMB 3,543.6 million in the previous year[10] - The company's cash and cash equivalents as of December 31, 2021, amounted to approximately RMB 1,993.3 million, up from RMB 1,360.3 million in 2020, indicating a growth of 47.3%[61] Expenses and Costs - The cost of sales rose from RMB 3,752.3 million in 2020 to RMB 5,870.5 million in 2021, an increase of 56.5%, while the cost as a percentage of revenue decreased from 75.8% to 64.0%[43] - Selling and promotional expenses rose by 211.9% from RMB 709.9 million in 2020 to RMB 2,214.4 million in 2021, accounting for 24.1% of revenue, up from 14.3%[45] Compliance and Governance - The board confirmed compliance with all significant aspects of contract arrangements as of December 31, 2021[77] - The group has adhered to all relevant laws and regulations, with no significant violations reported during the review year[102] - The company has successfully maintained compliance with all relevant Chinese laws and regulations, obtaining all necessary licenses and approvals for its operations[110] Employee Management - The group had a total of 2,297 full-time employees, with 893 in technology and R&D, and 371 in business operations[76] - The management emphasizes effective talent management as a foundation for long-term success, offering competitive salaries and benefits to retain employees[103] - The group has a robust internal training program aimed at attracting, developing, and retaining talent[103] Shareholder Matters - The group did not recommend the payment of a final dividend for the year ended December 31, 2021[80] - The company has adopted a dividend policy that allows for the declaration of dividends based on available profits and reserves[117] - The company aims to maximize shareholder returns by focusing on core business for sustainable growth[108] Stock Options and Incentives - The company granted a total of 60 million stock options, equivalent to approximately 3.0% of the issued shares as of the report date[134] - The exercise price for the stock options is set at HKD 3.9 per share, which is higher than the closing price of HKD 2.26 on the grant date[137] - The vesting schedule for the stock options indicates that 25% will vest on May 28, 2022, and 100% will vest by May 28, 2025[139] Environmental and Social Responsibility - The group reported a significant focus on environmental policies, with no major health, safety, or environmental risks faced during the year ending December 31, 2021[101] - The group has implemented measures to promote environmental friendliness in the workplace, including paper recycling and water-saving initiatives[101]