动态调整我们也是从更加理性的更加切实的一个变现渠道来推出我们的整个内容的一个适配的一个终端的一个端口所以说可以看到其实像我们目前主要的三大业务 无论是SaaS也好还是营销也好还是内容也好其实我们更多的是和手机是和电脑端进行一个内容的输出同时我们会根据一些新开发的一些头衔我们会进行适配所以说并不是完全只针对X而头衔而是根据整个行业的发展的一个节奏 然后我们来动态的去适配内容输出的一个端口然后从这个技术和这个变现的一个角度来看其实公司的一个底层的一个核心技术是我们自研的一个3D的一个开发引擎那么这款3D开发引擎它的可能的一个技术特点 主要是集中在中轻度的这种开发环境和算理平台上所以它跟unity和虚幻这样中度和重度的开发引擎是形成了一个差异化的一个打法和市场所以这个也是我们在技术方面所一直持续在迭代的一个底层的一个技术然后从B端的业务来看我们 嗯这个嗯报表上就是根据报表的这个分类啊我们是分为三大块业务啊那么第一块业务呢就是这个VRAR的这个营销服务啊然后这块业务呢我们去年大概实现了8.45亿的一个营收啊然后同比增长这个收入幅度达到这个24%左右啊然后第二个呢就是这个VRAR内容啊然后这块就是比较 呃典型的这个呃3 ...

Financial Performance - Revenue for 2023 reached RMB 1,244,723 thousand, representing a 16.7% increase from RMB 1,066,157 thousand in 2022[26] - Adjusted net profit for 2023 was RMB 273,971 thousand, up 6.3% from RMB 257,711 thousand in 2022[26] - Gross profit for the year was RMB 420,717 thousand, reflecting a 12.5% increase compared to RMB 373,995 thousand in the previous year[26] - The net profit for 2023 reached RMB 263.9 million, reflecting an 11.6% year-on-year growth[33] - The company's revenue increased by 16.7% from RMB 1,066.2 million in 2022 to RMB 1,244.7 million in 2023, primarily driven by growth in AR/VR marketing services[50] - Revenue from AR/VR marketing services rose by 24.0% from RMB 681.8 million in 2022 to RMB 845.1 million in 2023, despite a slight decline in the number of advertising clients[52] - Revenue from the tourism industry grew from RMB 109.5 million in 2022 to RMB 132.2 million in 2023, while e-commerce revenue increased from RMB 77.1 million to RMB 84.0 million[54] - Revenue from AR/VR content slightly decreased by 0.6% from RMB 336.2 million in 2022 to RMB 334.0 million in 2023, attributed to a decline in average project prices[55] - Revenue from AR/VR SaaS services increased by 31.7% from RMB 43.7 million in 2022 to RMB 57.6 million in 2023, due to a rise in the number of clients subscribing to customized projects[57] - Other business revenue surged by 80.1% from RMB 4.5 million in 2022 to RMB 8.0 million in 2023, driven by new business explorations[58] Business Expansion and Strategy - The company expanded its business into overseas markets, marking the first step in its international strategy[30] - The company aims to strengthen its core AR/VR content and services while exploring new business directions and overseas markets[30] - The company expanded its AR/VR marketing services to overseas markets, generating RMB 99.6 million in revenue from 4 overseas advertising agencies[36] - In 2023, the company expanded into digital human development and operation services, accumulating nearly 5 million fans and over 20 million likes across its digital human virtual image matrix[44] - The company plans to leverage new hardware platforms to enhance C-end content demand, focusing on high-quality digital human live streaming solutions[47] - The company aims to explore the Web3.0 domain through investments in various sectors, including public chains and decentralized finance[49] - The company plans to establish a metaverse industry fund in collaboration with local governments and other listed companies to invest in promising early-stage enterprises in the AR/VR content and service sectors[49] Research and Development - The company increased its R&D investment, focusing on the application of AI technologies in digital content production[30] - The company will continue to develop its AI capabilities, utilizing generative AI models to enhance content production efficiency and reduce costs[47] - R&D expenses rose by 5.6% from RMB 48.5 million for the year ended December 31, 2022, to RMB 51.2 million for the year ended December 31, 2023, driven by higher employee costs and outsourced R&D expenses related to the development of the Flying Sky Metaverse platform[75] Assets and Liabilities - Non-current assets decreased to RMB 228,621 thousand from RMB 248,823 thousand in 2022[29] - Current assets rose to RMB 1,492,653 thousand, up from RMB 1,278,627 thousand in the previous year[29] - The net asset value increased to RMB 1,452,232 thousand from RMB 1,225,405 thousand in 2022[29] - Trade receivables rose from RMB 375.5 million as of December 31, 2022, to RMB 561.5 million as of December 31, 2023, in line with business growth[85] - Prepayments increased from RMB 485.5 million as of December 31, 2022, to RMB 594.0 million as of December 31, 2023, primarily due to higher prepayments for advertising traffic related to AR/VR marketing services[87] - Bank borrowings rose from RMB 80.0 million as of December 31, 2022, to RMB 95.0 million as of December 31, 2023, driven by operational funding needs due to business expansion[92] Employee and Management - As of December 31, 2023, the group has 142 full-time employees, all located in China[102] - The group emphasizes competitive compensation and a supportive environment to attract and retain qualified personnel[102] - Employee compensation includes base salary, bonuses, and performance-related incentives, with regular reviews based on qualifications and market conditions[102] - The executive team includes experienced individuals with over 18 years in internet technology and software engineering[103][104] - The group has adopted an employee stock option plan to align employee compensation with overall performance[102] Corporate Governance - The company is committed to high standards of corporate governance to ensure sustainable returns for shareholders[198] - The board has adopted principles and provisions of the corporate governance code as the foundation of its governance practices[198] - The board consists of a balanced mix of executive and independent non-executive directors, ensuring strong independent judgment[200] - The governance framework is designed to enhance transparency and accountability within the company[198] Risks and Compliance - The company has identified several key risks, including the ability to maintain operational performance and manage growth effectively[157] - The company faces uncertainties related to compliance with privacy and data protection laws in China[157] - The company has established a family trust for estate planning purposes, with Vistra Trust (Singapore) Pte. Limited acting as the trustee[155] - The company believes that the contractual arrangements are crucial for its legal structure and business operations[172] Shareholder Information - The company reported no final dividend for the fiscal year ending December 31, 2023[114] - The company has maintained at least 25% of its shares held by the public, complying with the minimum public holding requirement[188] - The total number of shares available for issuance under the post-IPO share option plan is capped at 181,000,000 shares, representing 10% of the total shares issued as of the report date[133]

] y r t s u d n I _ e l b a T [ [ 飞Ta 天bl 云e_ 动T （itl 0e 6] 6 10.HK）动态点评 公 司 研 业绩持续增长，外扩商业版图 究 挖掘价值 投资成长 / 互 [Table_Rank] 增持 联 （维持） 网 2024 年 04 月 08 日 / 证 券 研 [东Ta方bl财e_富Au证th券or研] 究所 究 [【Tab事le_项Sum】ma ry] 证券分析师：高博文 报 告 证书编号：S1160521080001 证券分析师：陈子怡  公司于 3 月 28 日发布 2023 年业绩公告。2023 年公司实现营业收入 证书编号：S1160522070002 12.45亿元（yoy+16.7%），实现归母净利润2.64亿元（yoy+11.5%）。 联系人：潘琪 电话：021-23586487 【评论】 [相Ta对b指le数_P表ic现Qu ote]  主线业务全面发展。2023年公司AR/VR营销服务实现收入8.45亿元 1.45% -14.94% （yoy+24.0%），其中国内营销业务实现收入7.46亿元（yoy+9.4%）； -31.34% ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has demonstrated steady revenue growth, achieving an operating income of 1.245 billion HKD in 2023, a year-on-year increase of 16.7%, and a net profit of 264 million HKD, up 11.5% year-on-year. The growth is driven by the expansion of AR/VR marketing services and the increase in average spending by advertisers [5] - The company is focusing on the development of C-end digital humans and XR content, which is expected to drive future growth. The digital human matrix has accumulated over 5 million fans, indicating potential for monetization through various channels [6] - The collaboration with Lanting Digital to produce XR content and the development of AI models are expected to create a second growth curve for the company, particularly with the anticipated demand for MR content in the C-end market [7] Summary by Relevant Sections Financial Performance - In 2023, the company reported an operating income of 1.245 billion HKD, with a year-on-year growth of 16.7%. The net profit was 264 million HKD, reflecting an 11.5% increase. The AR/VR marketing services revenue reached 845 million HKD, up 24% year-on-year, while AR/VR content revenue slightly decreased by 0.65% to 334 million HKD. The AR/VR SaaS service revenue grew by 31.7% to 58 million HKD, driven by a 103% increase in paid users [5][8] - The projected net profits for 2024, 2025, and 2026 are estimated at 332 million HKD, 397 million HKD, and 464 million HKD respectively, with corresponding EPS of 0.18, 0.22, and 0.26 HKD [5] Business Development - The company has expanded its digital human development and operation services, creating virtual personas and providing comprehensive solutions to various industry clients. This initiative has led to a significant fan base, which is expected to facilitate monetization through fan economy and commercial partnerships [6] - The partnership with Lanting Digital for the XR version of a popular concert and the ongoing development of AI models are anticipated to enhance operational efficiency and drive growth in XR content [7]

Financial Performance - The company achieved a revenue of RMB 1,244.7 million for the year ended December 31, 2023, representing a year-on-year growth of 16.7% compared to RMB 1,066.2 million in 2022[2]. - Gross profit for the year was RMB 420.7 million, an increase of 12.5% from RMB 374.0 million in the previous year[2]. - The company's net profit for the year reached RMB 263.9 million, reflecting an 11.6% increase from RMB 236.6 million in 2022[2]. - Revenue from AR/VR marketing services was RMB 845.1 million, showing a significant growth of 24.0% year-on-year[4]. - Revenue from AR/VR content business was RMB 334.0 million, with the number of clients increasing by 29% to 75[8]. - The company's revenue increased by 16.7% from RMB 1,066.2 million in 2022 to RMB 1,244.7 million in 2023, primarily driven by growth in AR/VR marketing services[19]. - Revenue from AR/VR marketing services rose by 24.0% from RMB 681.8 million in 2022 to RMB 845.1 million in 2023, despite a slight decline in the number of advertising clients[21]. - Revenue from AR/VR SaaS services grew by 31.7% from RMB 43.7 million in 2022 to RMB 57.6 million in 2023, due to an increase in the number of clients subscribing to customized AR/VR SaaS projects[26]. - The company's total revenue for the year ended December 31, 2023, was RMB 1,244,723 thousand, representing an increase from RMB 1,066,157 thousand in 2022, which is approximately 16.7% growth[104]. Client and Market Expansion - Domestic marketing revenue increased by 9% to RMB 745.6 million, while the number of advertising clients decreased from 27 to 24[6]. - The company expanded its AR/VR marketing services to overseas markets, generating RMB 99.6 million in revenue from 4 overseas advertising clients[5]. - The number of AR/VR marketing service clients increased, with the average payment per channel rising by 68.7% to RMB 51.9 million[21]. - The company expanded its overseas AR/VR marketing services, serving 4 overseas advertising agencies and reaching 374 overseas media outlets[21]. - The company is actively exploring new business directions, including digital human development and operation services, to capture emerging market opportunities[14]. - The company plans to leverage new hardware platforms to expand its C-end XR content offerings, anticipating explosive growth in content demand[17]. User Engagement and Growth - The number of paid users for the AR/VR SaaS platform increased by 103% year-on-year to 9,283[12]. - The registered user count for AR/VR SaaS services reached 41,880, up 75% from 23,991 in 2022[13]. - The average monthly active users rose by 21% to 10,028 compared to 8,288 in the previous year[13]. - The total number of end media increased from 4,378 in 2022 to 4,780 in 2023, representing a growth of 9.2%[5]. Cost and Expenses - Cost of revenue rose by 19.0% from RMB 692.2 million in 2022 to RMB 824.0 million in 2023, primarily due to increased traffic acquisition costs associated with AR/VR marketing services[28]. - Distribution and selling expenses rose by 42.0% from RMB 136 million in 2022 to RMB 193 million in 2023, driven by increased employee costs and promotional expenses[42]. - Administrative expenses increased by 49.4% from RMB 332 million in 2022 to RMB 496 million in 2023, mainly due to higher employee costs and increased office space rental[43]. - Research and development expenses grew by 5.6% from RMB 485 million in 2022 to RMB 512 million in 2023, reflecting higher personnel costs and outsourced R&D expenses[44]. Profitability and Margins - Gross profit increased by 12.5% from RMB 374.0 million in 2022 to RMB 420.7 million in 2023, while gross margin decreased from 35.1% to 33.8%[34]. - The gross margin for AR/VR marketing services slightly decreased to 22.5% in 2023 from 22.8% in 2022, attributed to increased traffic costs[36]. - The gross margin for AR/VR content improved to 57.5% in 2023 from 55.9% in 2022, due to enhanced content production efficiency[36]. - The gross margin for AR/VR SaaS increased significantly to 79.3% in 2023 from 68.3% in 2022, benefiting from economies of scale[36]. - Net profit increased by 11.6% from RMB 236 million in 2022 to RMB 264 million in 2023, while the net profit margin decreased from 22.2% to 21.2%[47]. Assets and Liabilities - Trade receivables rose from RMB 375.5 million in 2022 to RMB 561.5 million in 2023, consistent with business growth[53]. - Intangible assets increased significantly from RMB 479 million in 2022 to RMB 950 million in 2023, primarily due to the acquisition of adaptation rights and software to support AR/VR SaaS business development[50]. - Trade and other payables increased from RMB 139.6 million as of December 31, 2022, to RMB 148.1 million as of December 31, 2023, driven by higher employee compensation and tax liabilities[57]. - Total liabilities decreased to RMB 268,142 thousand in 2023 from RMB 300,525 thousand in 2022, representing a reduction of about 10.7%[71]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting process and internal control systems, confirming compliance with applicable accounting standards[142]. - The company has committed to high standards of corporate governance to protect shareholder interests and enhance transparency[140]. - The company has maintained the required public float as per listing rules as of the announcement date[146]. - The board believes that the combination of the roles of chairman and CEO is beneficial for management[140]. Future Outlook and Investments - The company plans to enhance its R&D capabilities and improve services and products, allocating approximately HKD 53.2 million (10.0% of net proceeds) for this purpose by the end of 2024[137]. - The company intends to develop and optimize its AR/VR development engine, with an allocation of HKD 42.6 million (8.0% of net proceeds) by the end of 2024[137]. - A total of HKD 79.8 million (15.0% of net proceeds) is earmarked for selected mergers, acquisitions, and strategic investments by the end of 2024[137].

Financial Performance - The company reported a revenue of RMB 598.96 million for the first half of 2023, representing a 26.6% increase compared to RMB 473.12 million in the same period of 2022[8]. - Gross profit for the first half of 2023 was RMB 196.06 million, up 32.7% from RMB 147.73 million year-on-year, with a gross margin of 32.7%[8]. - Profit before tax increased by 15.0% to RMB 122.58 million, compared to RMB 106.60 million in the previous year[8]. - The net profit for the period was RMB 116.32 million, reflecting a 41.4% growth from RMB 82.24 million in the same period last year[8]. - The company achieved a basic earnings per share of RMB 6.4, an increase of 18.5% from RMB 5.4 in the previous year[8]. - Revenue increased by 26.6% from RMB 473.1 million in the six months ended June 30, 2022, to RMB 599.0 million in the same period of 2023, driven by growth in AR/VR marketing services and content[22]. - Revenue from the e-commerce sector grew significantly from RMB 30.8 million to RMB 63.3 million, attributed to increased AR/VR advertising expenditures by major clients[27]. - Revenue from the entertainment and gaming sectors increased from RMB 867 million in the first half of 2022 to RMB 1,015 million in the first half of 2023, driven by increased spending from major clients and a rise in the number of clients[30]. AR/VR Services - Revenue from AR/VR marketing services reached RMB 424.8 million, a 25.3% increase year-on-year, driven by an increase in the number of products and average spending per advertising client[10]. - Revenue from AR/VR content services was RMB 146.6 million, marking a 29.8% increase, attributed to a rise in client and project numbers[12]. - Revenue from AR/VR SaaS services reached RMB 26.9 million in H1 2023, representing a growth of 35.7% year-over-year[13]. - The number of customers for AR/VR content services increased to 35 in H1 2023, up 52.2% from 23 in H1 2022[13]. - The number of paying subscribers surged by 117.2%, reaching 3,030 compared to 1,395 in H1 2022[14]. - The company plans to continue expanding its augmented reality and virtual reality (AR/VR) marketing services, aiming to capture a larger market share in the growing AR/VR sector[121]. Cost and Expenditure - Cost of revenue increased by 23.8% from RMB 3,254 million in the first half of 2022 to RMB 4,029 million in the first half of 2023, primarily due to rising traffic acquisition costs and subcontracting costs related to AR/VR services[35]. - R&D expenditure for the company was RMB 28.2 million in H1 2023, marking a 69.0% increase year-over-year[18]. - The company incurred a loss of RMB 32,103 thousand in other comprehensive expenses during the first half of 2023, compared to no such expenses in the same period of 2022[117]. - The total depreciation and amortization expenses for the six months ended June 30, 2023, amounted to RMB 19,228,000, compared to RMB 10,507,000 for the same period in 2022, indicating an increase of 83.5%[134]. Assets and Liabilities - Trade receivables increased from RMB 375.5 million as of December 31, 2022, to RMB 518.4 million as of June 30, 2023, reflecting business growth[65]. - Total assets as of June 30, 2023, were RMB 1,394,694 thousand, compared to RMB 1,278,627 thousand at the end of 2022[113]. - The company's equity attributable to owners increased to RMB 1,306,888 thousand from RMB 1,222,672 thousand, reflecting a growth of 6.9%[115]. - The total amount of trade and other receivables and deposits reached RMB 527,725,000, up from RMB 387,266,000, reflecting a growth of 36.3%[146]. - The company’s total liabilities increased to RMB 183,178,000 as of June 30, 2023, from RMB 139,624,000 as of December 31, 2022[149]. Strategic Initiatives - The company plans to launch several digital personas with over one million followers in the second half of 2023, enhancing its digital persona MCN matrix[16]. - The company aims to leverage AIGC technology to reduce 3D modeling costs and enhance user interaction experiences in the metaverse[17]. - The company plans to allocate a total of HKD 531.9 million for various purposes, with 10% (HKD 53.2 million) dedicated to enhancing sales and marketing functions[87]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $500 million allocated for this purpose[165]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting and risk management standards[102]. - The company has maintained high standards of corporate governance, with a commitment to reviewing its governance structure regularly[105]. - Major shareholders collectively hold 42.21% of the company's equity, with Wanglei Co., Ltd. and LYH. Ltd. each owning 764,083,301 shares[97]. Market Outlook - The metaverse industry is projected to reach a market size of USD 700-900 billion by 2030, with content creation tools expected to capture about 70% of this market[17]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12% based on current market trends[165].

Financial Performance - The company reported a revenue of RMB 598.96 million for the six months ended June 30, 2023, representing a 26.6% increase compared to RMB 473.12 million in the same period last year[2]. - Gross profit for the same period was RMB 196.06 million, up 32.7% from RMB 147.73 million, with a gross margin of 32.7%[2][3]. - Profit before tax increased by 15.0% to RMB 122.58 million, compared to RMB 106.60 million in the previous year[2]. - Net profit for the period was RMB 116.32 million, reflecting a 41.4% growth from RMB 82.24 million in the prior year[2][3]. - Total revenue for the first half of 2023 reached RMB 424.8 million, a 25.3% increase from RMB 339.0 million in the same period of 2022[19]. - The group recorded a profit of RMB 116.3 million for the six months ended June 30, 2023, a 41.4% increase from RMB 82.2 million in the same period of 2022[44]. - The company reported a net profit of RMB 116.32 million for the six months ended June 30, 2023, compared to RMB 82.24 million for the same period in 2022, marking a year-over-year increase of approximately 41.4%[60]. - The profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 116,319,000, an increase of 41.2% compared to RMB 82,381,000 for the same period in 2022[62]. - The basic earnings per share for the period was RMB 6.4, up from RMB 5.4 in the previous year, reflecting a growth of 18.5%[62]. Revenue Breakdown - Revenue from AR/VR marketing services reached RMB 424.8 million, a 25.3% increase year-on-year, with a stable gross margin of 22.86%[4]. - The company achieved a 29.8% revenue growth in AR/VR content services, totaling RMB 146.6 million, driven by an increase in client and project numbers[6]. - Revenue from the e-commerce sector increased from RMB 30.8 million in the first half of 2022 to RMB 63.3 million in the first half of 2023, driven by increased AR/VR advertising spending[20]. - Revenue from the automotive sector surged from RMB 2.7 million in the first half of 2022 to RMB 26.5 million in the first half of 2023, reflecting an expanded customer base[20]. - Revenue from AR/VR content business rose by 29.8% to RMB 146.6 million in the first half of 2023, up from RMB 113.0 million in the same period of 2022[21]. - Revenue from AR/VR SaaS business grew by 35.7% to RMB 26.9 million in the first half of 2023, compared to RMB 19.8 million in the same period of 2022[23]. Client and User Metrics - The number of advertising clients decreased by 7.7% to 24, while the average spending per client rose by 35.7% to RMB 17,700[5]. - The number of registered users for AR/VR SaaS services grew by 49.8% to 8,778, while the number of paying users surged by 117.2% to 3,030[8]. - The number of clients in the AR/VR content business increased from 23 in the first half of 2022 to 35 in the first half of 2023[21]. Research and Development - R&D expenditure for the first half of 2023 was RMB 28.2 million, representing a 69.0% year-on-year increase, with a focus on enhancing AIGC capabilities in content production[14]. - R&D expenses for the six months ended June 30, 2023, were RMB 28.22 million, compared to RMB 16.70 million in the same period of 2022, reflecting increased investment in new technologies[60]. - The company is focused on research and development (R&D) to enhance its software-as-a-service (SaaS) offerings[98]. Operational Efficiency - The gross margin improved from 31.2% in the first half of 2022 to 32.7% in the first half of 2023, attributed to business expansion and operational efficiency[31]. - The gross margin for AR/VR SaaS business surged from 59.0% to 75.6%, mainly due to all subscription contracts being signed directly with agents, resulting in higher margins[34]. - The company is leveraging its self-developed FT-Engine to improve the efficiency of content production, reducing project development cycles by 10-20%[14]. Strategic Initiatives - The company aims to expand its metaverse applications into emerging fields such as digital collectibles, industrial metaverse, and urban metaverse[14]. - The company is actively pursuing overseas business opportunities, with initial success noted in the first half of 2023[15]. - The company plans to enhance its talent pool and management structure to support business expansion and product development[15]. - The company is committed to providing high-quality, immersive interactive experiences through AI-driven models tailored for specific verticals like tourism and entertainment[14]. Financial Position - The company had cash and cash equivalents of RMB 376.3 million as of June 30, 2023, ensuring liquidity for future growth opportunities[57]. - The company's net current assets increased to RMB 1,068,897,000, up from RMB 978,102,000, representing a growth of 9.2%[63]. - The company's equity attributable to owners increased to RMB 1,306,888,000 from RMB 1,222,672,000, reflecting a growth of 6.9%[64]. - Trade receivables rose from RMB 375.5 million on December 31, 2022, to RMB 518.4 million on June 30, 2023, in line with business growth[51]. Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance transparency[90]. - The company has established an audit committee to oversee financial reporting and risk management, ensuring compliance with applicable accounting standards[93]. - The board of directors includes both executive and independent non-executive members, ensuring diverse oversight[98]. Market Outlook - The metaverse industry is projected to reach a market size of USD 700-900 billion by 2030, with content and content creation tools expected to account for approximately 70% of this market[12]. - The company plans to provide future guidance on performance metrics and growth expectations[98]. - The company is exploring new product development to meet evolving market demands[98].

Financial Performance - Revenue for the year ended December 31, 2022, reached RMB 1,066,157 thousand, representing a 79.1% increase from RMB 595,290 thousand in 2021[7] - Gross profit for 2022 was RMB 373,995 thousand, up 113.1% from RMB 175,516 thousand in the previous year[7] - Profit before tax increased by 183.6% to RMB 247,144 thousand, compared to RMB 87,142 thousand in 2021[7] - Net profit for the year was RMB 236,593 thousand, a significant rise of 229.9% from RMB 71,719 thousand in 2021[7] - Total comprehensive income for the year amounted to RMB 257,465 thousand, reflecting a 259.0% increase from RMB 71,719 thousand in 2021[7] - Adjusted net profit (unaudited) was RMB 257,711 thousand, a 144.1% increase from RMB 105,596 thousand in 2021[8] - The company recorded a profit of RMB 236.6 million for the year ended December 31, 2022, a 229.9% increase from RMB 71.7 million in 2021, with a net profit margin rising from 12.0% to 22.2%[54] Revenue Breakdown - In 2022, the company's revenue reached RMB 1,066.2 million, a 79.1% increase year-on-year, driven by growth in AR/VR marketing services and content[11] - The AR/VR marketing services revenue grew by 81.2% to RMB 681.8 million, with a gross margin of 22.8%[12] - The AR/VR content business revenue increased by 108.3% to RMB 336.2 million, with a gross margin of 55.9%[15] - Revenue from the tourism sector increased from RMB 33.8 million in 2021 to RMB 109.5 million in 2022, reflecting a growing client base[30] - The e-commerce sector's revenue grew from RMB 20.9 million in 2021 to RMB 77.1 million in 2022, driven by increased AR/VR advertising spending[30] - Revenue from AR/VR SaaS business increased by 112.3% from RMB 20.6 million in 2021 to RMB 43.7 million in 2022, driven by an increase in the number of customers subscribing to customized AR/VR SaaS projects[17] - Revenue from the entertainment and gaming sectors increased from RMB 125.6 million in 2021 to RMB 264.7 million in 2022, due to higher spending from major clients and an increase in customer numbers[32] Client and Project Growth - The number of advertising clients increased from 24 in 2021 to 27 in 2022, with the average spending per client rising from RMB 15.7 million to RMB 25.3 million[13] - The number of AR/VR content projects increased from 95 in 2021 to 149 in 2022, with the client base growing from 46 to 58[15] - The number of customized AR/VR SaaS projects increased from 142 in 2021 to 320 in 2022, indicating significant growth in project development[18] - The number of registered users for AR/VR SaaS reached 23,991 in 2022, up from 12,265 in 2021, representing an increase of approximately 95%[18] - The number of paid subscription users for AR/VR SaaS increased to 4,570 in 2022, up from 2,015 in 2021, marking a growth of approximately 127%[18] Cost and Expenses - Total revenue cost rose by 64.9% from RMB 419.8 million in 2021 to RMB 692.2 million in 2022, primarily due to increased traffic acquisition costs and subcontracting costs related to AR/VR content[36] - Traffic acquisition costs accounted for 75.6% of total revenue costs in 2022, amounting to RMB 523.1 million, up from 74.2% in 2021[37] - The cost of AR/VR marketing services increased from RMB 294.8 million in 2021 to RMB 526.1 million in 2022, driven by growth in the AR/VR marketing services business[38] - The cost of AR/VR content business rose from RMB 86.9 million in 2021 to RMB 148.2 million in 2022, mainly due to increased subcontracting and development costs[40] - The company's administrative expenses rose by 52.9% from RMB 21.7 million in 2021 to RMB 33.2 million in 2022, driven by increased employee costs and office space rental[50] - R&D expenses surged by 123.3% from RMB 21.7 million in 2021 to RMB 48.5 million in 2022, reflecting higher personnel costs and outsourced development expenditures[51] Assets and Liabilities - Non-current assets as of December 31, 2022, were RMB 248,823 thousand, compared to RMB 40,236 thousand in 2021[9] - Current assets increased to RMB 1,278,627 thousand from RMB 543,279 thousand in the previous year[9] - Current liabilities rose to RMB 300,525 thousand, up from RMB 134,201 thousand in 2021[9] - Total equity as of December 31, 2022, was RMB 1,225,405 thousand, compared to RMB 446,570 thousand in 2021[9] - Trade receivables increased from RMB 161.9 million in 2021 to RMB 375.5 million in 2022, indicating business growth aligned with increased customer purchases of AR/VR services[62] - Intangible assets rose from RMB 29.3 million in 2021 to RMB 47.9 million in 2022, primarily due to increased purchases of adaptation rights and software to support AR/VR SaaS business[57] - Prepayments surged from RMB 153.4 million in 2021 to RMB 485.5 million in 2022, driven by higher prepayments for advertising traffic related to AR/VR marketing services[64] Strategic Initiatives - The company plans to enhance R&D capabilities and improve products and services using the net proceeds of approximately HKD 531.9 million from its IPO[11] - The company aims to expand its presence in overseas markets and strengthen investments and collaborations along the industry chain[11] - The company plans to invest in R&D to strengthen its core technologies and develop new solutions, including AI-generated 3D models and video content[23] - The company aims to expand its business in line with the trend of transitioning from 2D to 3D content, leveraging advancements in technologies like 5G and AI[21] - The company is actively exploring overseas markets in 2023, leveraging its experience in AR/VR content and services[26] - The company plans to enhance sales and marketing functions, allocating HKD 53.2 million (10.0% of net proceeds) for brand image strengthening, with HKD 35.4 million remaining to be utilized by the end of 2024[100] Governance and Compliance - The company has established a solid governance structure with independent directors providing oversight and independent judgment[84] - The board consists of seven members, including four executive directors and three independent non-executive directors[169] - The company has established a risk management system to monitor business performance and ensure compliance with regulations[188] - The audit committee consists of three independent non-executive directors, ensuring independent oversight of financial reporting and internal controls[193] - The company has implemented a whistleblowing policy allowing employees and stakeholders to report misconduct confidentially and anonymously[193] - The company is committed to high standards of corporate governance and has established policies for environmental protection and corporate social responsibility[156] Market and Industry Outlook - The company anticipates that the overall scale of China's virtual reality industry will exceed RMB 350 billion by 2026, with a projected sales volume of over 25 million VR terminals[20] - The company is facing uncertainties in the Chinese SaaS and AR/VR marketing industries, which may impact future performance[131] - The competitive landscape remains intense, posing challenges in successfully competing with existing and future competitors[131] - The company plans to expand its market presence through strategic partnerships and acquisitions[137] Shareholder Information - The board does not recommend any final dividend for the year ending December 31, 2022[90] - The company has adopted a dividend policy that considers overall operating performance, financial condition, and future cash needs[162] - Shareholders holding at least 10% of the paid-up capital can request the board to convene a special general meeting[197]

Financial Performance - The company's revenue for the year ended December 31, 2022, reached RMB 1,066.2 million, representing a 79.1% increase compared to RMB 595.3 million in 2021[2] - Gross profit increased by 113.1% to RMB 374.0 million, with a gross margin of 35.1%[3] - Profit for the year surged by 229.9% to RMB 236.6 million, with basic and diluted earnings per share of RMB 14.8, up from RMB 5.2 in 2021[2] - Revenue increased by 79.1% from RMB 595.3 million in 2021 to RMB 1,066.2 million in 2022, driven by growth in AR/VR marketing services and content[24] - The company reported a net profit of RMB 236.6 million for the year ended December 31, 2022, a 229.9% increase from RMB 71.7 million in 2021[54] - Basic and diluted earnings per share for the year ended December 31, 2022, were RMB 14.8, compared to RMB 5.2 in 2021, an increase of 184.6%[79] - The adjusted net profit for the year ended December 31, 2022, was RMB 257.7 million, an increase of 143.8% from RMB 105.6 million in 2021[56] Revenue Segmentation - The AR/VR marketing services segment generated revenue of RMB 681.8 million, an 81.2% increase from RMB 376.3 million in 2021, driven by an increase in the number of advertising clients and average spending per client[5] - The AR/VR content business saw revenue grow by 108.3% to RMB 336.2 million, with the number of projects increasing from 95 to 149[9] - Revenue from the tourism sector grew from RMB 33.8 million in 2021 to RMB 109.5 million in 2022, reflecting an expanded customer base[28] - Revenue from the e-commerce sector increased from RMB 20.9 million in 2021 to RMB 77.1 million in 2022 due to increased AR/VR advertising spending[28] - Revenue from the entertainment and gaming sectors increased from RMB 125.6 million in 2021 to RMB 264.7 million in 2022, driven by increased spending from major clients and a rise in the number of clients[31] - Revenue from AR/VR SaaS business increased by 112.3% from RMB 20.6 million in 2021 to RMB 43.7 million in 2022, driven by an increase in the number of customers subscribing to customized AR/VR SaaS projects[12] Client Metrics - The number of advertising clients increased from 24 in 2021 to 27 in 2022, with the average spending per client rising from RMB 15.7 million to RMB 25.3 million[6] - The renewal rate for AR/VR marketing services increased to 63.0% in 2022 from 50.0% in 2021, indicating higher client retention[6] - The number of registered users for AR/VR SaaS reached 23,991 in 2022, up from 12,265 in 2021, while the number of paying users increased to 4,570 from 2,015[13] - The average monthly active users increased to 8,288 in 2022 from 4,551 in 2021, with peak monthly active users reaching 9,835 compared to 6,601 in the previous year[13] Research and Development - R&D expenses amounted to RMB 48.5 million in 2022, representing 4.5% of revenue, compared to RMB 21.7 million and 3.6% in 2021[14] - The R&D team consists of 56 full-time employees, accounting for approximately 46.7% of the total workforce[14] - The company is focused on enhancing its R&D capabilities to better meet customer needs and improve service quality[14] - The company plans to enhance R&D investment to sustain growth momentum and develop standardized, platform-based solutions[20] Market Strategy - The company plans to leverage its industry advantages to capture market opportunities and achieve long-term growth in the expanding AR/VR sector[3] - The company aims to deepen its presence in the metaverse by providing AR/VR services across various sectors, including e-commerce, education, and smart cities[18] - The company is exploring overseas markets in 2023, leveraging its experience in AR/VR content and services[23] Cost and Efficiency - Total cost of revenue increased by 64.9% from RMB 419.8 million in 2021 to RMB 692.2 million in 2022, primarily due to rising traffic acquisition costs and subcontracting costs related to AR/VR services[35] - Traffic acquisition costs accounted for 75.6% of total revenue costs in 2022, amounting to RMB 523.1 million, up from 74.2% in 2021[36] - The company achieved economies of scale in several cost areas, enhancing operational efficiency and bargaining power with suppliers[41] - The gross profit margin for total operations improved from 29.5% in 2021 to 35.1% in 2022, indicating overall operational efficiency gains[42] Corporate Governance - The company has complied with all applicable principles and provisions of the corporate governance code from the listing date to December 31, 2022, except for deviation from provision C.2.1[118] - The audit committee consists of three independent non-executive directors, with the main responsibility of reviewing and supervising the financial reporting process and internal control systems[120] - The company confirmed it has maintained the required public float as per the listing rules as of the announcement date[122] Shareholder Information - The company did not declare any dividends for the year ended December 31, 2022, consistent with the previous year[104] - The company will not recommend a final dividend for the year ending December 31, 2022[117] Listing and Capital Structure - The company successfully listed on the Hong Kong Stock Exchange on October 18, 2022, raising approximately HKD 531.9 million to enhance R&D capabilities and support strategic investments[3] - The company issued 271,500,000 ordinary shares at a cash price of HKD 2.21 per share on October 18, 2022, following its listing[110] Future Outlook - The Chinese virtual reality industry is projected to exceed RMB 350 billion by 2026, with over 25 million VR devices expected to be sold[15] - The company plans to use the remaining proceeds for purposes disclosed in the prospectus, with the expected timeline subject to market conditions[116]