Core Insights - Qingci Games (06633) reported a revenue of RMB 628 million for the year ending December 31, 2024, with a gross profit of RMB 363 million, achieving a profit of RMB 51.12 million, reversing a loss of RMB 37.37 million from the previous year [1] - The overseas revenue share increased from 28.47% to 43.93% year-on-year, indicating strong international market growth [1] - The total registered players reached 98.28 million, an 11.24% increase year-on-year, with an average monthly active user count of approximately 2.36 million and an average revenue per paying user (ARPPU) of RMB 265 [1] Game Performance - The flagship game "The Strong Snail" has generated cumulative revenue of approximately RMB 3.629 billion since its launch in June 2020, with a total of 29.05 million registered players [2] - The game celebrated its fourth anniversary in mainland China and has expanded its presence in overseas markets, including Japan, North America, and Australia, with significant collaborations and new language versions launched [2] - Other games like "Lighting and Dungeon" and "New Legend of Sword and Fairy" have also shown strong performance, contributing revenues of RMB 13.59 million and RMB 97.6 million respectively [3] Product Expansion - Qingci Games continues to expand its product matrix with several new releases in 2024, including "Fat Goose Gym" and "Aris Virus 2," which have received positive player feedback and generated revenues of RMB 59.74 million and RMB 23.18 million respectively [5] - The company has successfully launched a free version of "Incredible Maze" on Steam, achieving significant popularity and recognition [5] - The ongoing development and release of various games demonstrate the company's commitment to long-term IP management and market expansion [5]

Group 1 - The company reported a revenue of approximately 628 million yuan and a gross profit of about 363 million yuan for the year 2024, achieving a profit attributable to equity holders of 51.12 million yuan, marking a turnaround from loss to profit year-on-year [1] - As of December 31, 2024, the company had a total of 98.28 million registered players, an increase of 11.24% year-on-year, with monthly active users averaging around 2.36 million and monthly paying users approximately 227,800; the ARPPU reached 265 yuan [1] Group 2 - The company continues to iterate on its self-developed games, with its flagship game "The Strongest Snail" achieving high rankings in free and best-selling game charts in multiple overseas markets, generating cumulative revenue of approximately 3.629 billion yuan from both domestic and international markets as of December 31, 2024 [2] - The company is actively developing its self-researched game "Project E," which is an innovative SLG game expected to enhance content and gameplay in 2025 [2] - The company has improved its long-term operational capabilities in game publishing, with overseas revenue growing from 28.47% to 43.93% year-on-year, indicating a significant enhancement in global publishing strength [2] - The company is steadily strengthening its core competitiveness in research and operations, promoting the globalization of its game products and further expanding its overseas market presence [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 627.96 million, a decrease of 31% compared to RMB 905.74 million in 2023[3] - Gross profit for the same period was RMB 363.12 million, reflecting a decline of 35% from RMB 557.88 million in the previous year[3] - The company achieved a net profit attributable to equity holders of RMB 51.12 million, reversing a loss of RMB 37.37 million in 2023, marking a significant improvement of 237%[3] - The company's revenue for the year ending December 31, 2024, is approximately RMB 628.0 million, a decrease of 30.7% compared to RMB 905.7 million for the year ending December 31, 2023[21] - Total revenue for the year ended December 31, 2024, was RMB 3,627.962 million, compared to RMB 905.737 million for the year ended December 31, 2023, representing a significant increase[51] - The net profit for the year ended December 31, 2024, was RMB 47.128 million, a turnaround from a loss of RMB 37.600 million in the previous year[53] - Total comprehensive income for the year ended December 31, 2024, was RMB 63.961 million, compared to a loss of RMB 16.277 million in the previous year[53] User Metrics - The average monthly active users (MAU) decreased by 5% to 2.36 million from 2.48 million in the previous year[4] - The average monthly paying users (MPU) saw a significant drop of 43% to 228,000 from 401,000 in 2023[4] - The cumulative registered players increased by 11% to 98.28 million, up from 88.34 million in the previous year[8] - The player community, 青瓷铁粉, grew by 18.59% year-on-year, reaching 15.84 million members[17] Game Performance - The flagship self-developed game "The Strongest Snail" generated cumulative revenue of approximately RMB 3.63 billion as of December 31, 2024[7] - The game "T灯与地下城" generated approximately RMB 13.59 million in revenue during the reporting period[11] - "新仙剑奇侠传之挥剑问情" achieved revenue of about RMB 97.60 million and ranked first in the iOS free game chart after its launch[11] - "魔卡少女樱：回忆钥匙" recorded revenue of approximately RMB 22.99 million and topped the iOS free game chart in multiple regions[12] - "肥鹅健身房" launched in Japan and earned around RMB 59.74 million, reaching the top of both iOS and Google Play free game charts[13] - "迷途之光" generated revenue of about RMB 8.51 million during its reporting period[13] - Cumulative registered players for "不思议迷宫" exceeded 25 million as of December 31, 2024, with revenue of approximately RMB 7.44 million[14] - The group’s games generated a total revenue of approximately RMB 26.02 million from several titles during the reporting period[15] - The group’s mini-program games, including "最强蜗牛," recorded revenue of about RMB 21.52 million[16] Revenue Breakdown - Revenue from self-developed games decreased by 28.1% to approximately RMB 365.2 million, primarily due to declines in revenue from "The Strong Snail" and "Magic Plan" in various regions[26] - Revenue from licensed games decreased by 37.6% to approximately RMB 228.3 million, mainly due to declines from "New Sword and Fairy" and "Cardcaptor Sakura"[26] - Information services revenue increased by 66.8% to approximately RMB 16.3 million, driven by increased ad views or clicks within games[25] - Other services and sales revenue increased by 99.9% to approximately RMB 7.2 million, primarily due to increased sales of peripheral products and marketing through third-party platforms[27] - The proportion of revenue from mainland China decreased to 56.1% in 2024 from 71.5% in 2023, while revenue from other regions increased to 43.9% from 28.5%[21] Expenses and Costs - The cost of revenue decreased by 23.9% to approximately RMB 264.8 million, down from RMB 347.9 million in the previous year[28] - Sales and marketing expenses decreased by 49.7% from approximately RMB 429.2 million for the year ended December 31, 2023, to approximately RMB 216.0 million for the year ended December 31, 2024[34] - Research and development expenses increased by 0.6% from approximately RMB 105.5 million for the year ended December 31, 2023, to approximately RMB 106.1 million for the year ended December 31, 2024[35] - General and administrative expenses rose by 24.6% from approximately RMB 49.0 million for the year ended December 31, 2023, to approximately RMB 61.0 million for the year ended December 31, 2024[36] Financial Position - Total cash and cash equivalents decreased by 16.4% from approximately RMB 538.0 million as of December 31, 2023, to approximately RMB 450.0 million as of December 31, 2024[43] - The company had borrowings of RMB 20.0 million as of December 31, 2024, with an unused bank credit facility of RMB 70 million[43] - As of December 31, 2024, the group's current assets were approximately RMB 1,686.9 million, while current liabilities were approximately RMB 165.5 million, resulting in a current ratio of 1,019%[44] - The asset-liability ratio as of December 31, 2024, was 9%, down from 13% as of December 31, 2023, indicating improved financial stability[44] - Total liabilities as of December 31, 2024, amounted to RMB 174,232 thousand, a decrease from RMB 255,968 thousand in 2023[68] Future Plans and Developments - The company is focusing on enhancing product quality and operational efficiency to adapt to the evolving gaming industry landscape[5] - The upcoming game "Project E" is expected to undergo expanded testing in 2025, aiming to establish a new milestone for the company's self-developed game portfolio[7] - The company plans to continue launching new games and global releases to mitigate revenue declines from mature titles[24] - The company plans to enhance its game development capabilities and expand its overseas market presence by utilizing the proceeds from its global offering[85] - The group plans to launch multiple mobile games across various genres, with several titles expected to be released between 2025 and 2026[19] Governance and Compliance - The company has adopted the corporate governance code as its own and has complied with all provisions during the reporting period[86] - The audit committee, consisting of three independent non-executive directors, has reviewed the group's performance for the year ending December 31, 2024[89] - The new auditor, Hong Kong Lixin Dehao CPA Limited, will take effect from November 29, 2024, following the resignation of PwC[90] - The company maintains the minimum public float as required by the listing rules[88] Shareholder Information - The company will not recommend any final dividend for the year ending December 31, 2024[93] - The annual general meeting is scheduled for June 6, 2025, with a notice to be published in April 2025[92] - The company will suspend share transfer registration from June 3 to June 6, 2025, to determine shareholder attendance at the AGM[94] - The annual report for the year ending December 31, 2024, will be published in April 2025[95] - The company expresses sincere gratitude to shareholders, business partners, and employees for their continued support and efforts[100]

[Company Information](index=2&type=section&id=Company%20Information) [Company Profile](index=3&type=section&id=Company%20Profile) This section outlines Qincai Games Co., Ltd.'s fundamental information, including its board, committees, key personnel, and auditor, PricewaterhouseCoopers - Executive Directors include Mr. Yang Xu (Chairman), Mr. Huang Zhiqiang, Mr. Liu Siming, and Mr. Zeng Xiangshuo[3](index=3&type=chunk) - The company's auditor is PricewaterhouseCoopers[6](index=6&type=chunk) [Financial and Operational Highlights](index=5&type=section&id=Financial%20Highlights) [Key Financial and Operational Data](index=5&type=section&id=Key%20Financial%20and%20Operational%20Data) In H1 2024, revenue grew 3% to RMB 343 million, while gross profit and net profit declined, and MAU increased 21% despite a 7% drop in ARPPU H1 2024 Financial Summary | Indicator | For the Six Months Ended June 30, 2024 (RMB Thousand) | For the Six Months Ended June 30, 2023 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 342,622 | 333,937 | 3% | | Gross Profit | 211,787 | 225,413 | (6%) | | Net Profit | 38,203 | 41,717 | (8%) | | Profit Attributable to Equity Holders of the Company | 45,059 | 41,482 | 9% | H1 2024 Key Operational Data | Indicator | For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Average MAU (Thousand People) | 2,179 | 1,798 | 21% | | Average MPU (Thousand People) | 253 | 258 | (2%) | | ARPPU (RMB) | 275 | 296 | (7%) | | Cumulative Registered Players (Thousand People) | 93,389 | 82,365 | 13% | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=6&type=section&id=Business%20Overview) The Group strengthened its integrated R&D and operations, achieving stable business growth driven by significant overseas expansion, robust performance of core games, and a continuously enriched product pipeline - Overseas game business achieved significant growth, with H1 2024 overseas revenue reaching **RMB 143 million**, a year-on-year increase of approximately **120%**, and its revenue contribution rising from 19.4% to **41.7%**[14](index=14&type=chunk) - The flagship self-developed game 'The Strongest Snail' performed steadily, with its cumulative gross billings both domestically and internationally reaching approximately **RMB 3.46 billion** as of June 30, 2024[14](index=14&type=chunk) - The Group continues to enrich its game pipeline, including refining the self-developed SLG game 'Project E' and introducing quality games like 'Project W' and 'Project HA'[14](index=14&type=chunk) [Our Games](index=7&type=section&id=Our%20Games) As of June 30, 2024, the Group's portfolio includes 13 mobile and several mini-program games, with 'The Strongest Snail' and 'Sword and Fairy' being top revenue contributors H1 2024 Revenue Contribution by Major Games | Game Title | Revenue for the Period (Approx. RMB Million) | | :--- | :--- | | 'The Strongest Snail' | 189 | | 'Sword and Fairy: Together Forever' | 66.7 | | 'Fat Goose Fitness' | 27.1 | | 'Cardcaptor Sakura: Memory Key' | 17.4 | | 'Lantern and Dungeon' | 11.7 | | 'Light of the Lost' | 3.2 | | Mini-Program Games | 3.4 | - 'The Strongest Snail' maintains vitality through collaborations with renowned IPs like 'Kairosoft Games,' 'Calabash Brothers,' and 'Sanrio,' alongside expansion into Vietnamese and multi-language European markets[16](index=16&type=chunk) - The new game 'Fat Goose Fitness' launched in Japan in February 2024, immediately topping both iOS and Google Play free game charts, demonstrating strong publishing capabilities[18](index=18&type=chunk) [Player Community](index=9&type=section&id=Player%20Community) The 'Qingci Iron Fan Community' actively engages players via social media, growing its fan base by 25.24% to 14.97 million by June 30, 2024, enhancing game development and player acquisition - As of June 30, 2024, the 'Qingci Iron Fan' community has accumulated **14.9728 million** followers, representing a **25.24%** year-on-year increase[20](index=20&type=chunk) [Future Outlook](index=9&type=section&id=Future%20Outlook) The Group plans to expand its product portfolio and accelerate domestic and international launches of diverse reserved games, with 'Project E' and 'Project W' as key focuses, alongside continued overseas market expansion Mobile Game Pipeline | Name | Game Type | Source | Expected Launch Time | | :--- | :--- | :--- | :--- | | Project: Totem | Tower Defense | Licensed | 2024 | | Project V | Idle Game | Licensed | 2025 | | Project W | Card RPG | Licensed | 2025 | | Project HA | Card RPG | Licensed | 2025 | | Project E | SLG | Self-developed | 2025 | | Project 36Z | Idle Game | Licensed | 2025 | | Project T | SLG | Licensed | 2026 | | Project F | Survival Social | Licensed | 2026 | - The newly introduced 'Project W' is a 2D semi-turn-based card game adapted from the renowned novel 'The Great Ruler,' highly anticipated by the market[22](index=22&type=chunk) - Overseas market expansion continues, with the idle RPG card game 'BloodAge' launched in South Korea in September 2024, topping both app store charts[22](index=22&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) H1 2024 total revenue grew 2.6% to RMB 343 million, driven by licensed games, but increased commission costs reduced gross margin from 68% to 62%, resulting in an 8.4% profit decline to RMB 38.2 million [Revenue Analysis](index=11&type=section&id=Revenue%20Analysis) Total revenue increased 2.6% to RMB 343 million, primarily driven by a 1.5% rise in game operation revenue and a 57.2% surge in licensed game revenue, offsetting a decline in self-developed game revenue Revenue Composition (For the Six Months Ended June 30) | Business Category | 2024 (RMB Thousand) | 2023 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Game Operation Revenue** | | | | | - Self-developed | 196,738 | 237,930 | (17.3) | | - Licensed | 126,434 | 80,433 | 57.2 | | **Subtotal** | **323,172** | **318,363** | **1.5** | | Game Licensing Revenue | 6,323 | 11,317 | (44.1) | | Information Service Revenue | 9,290 | 2,528 | 267.5 | | Other Services and Sales | 3,837 | 1,729 | 121.9 | | **Total Revenue** | **342,622** | **333,937** | **2.6** | - The growth in licensed game revenue was primarily driven by the launch of new games like 'Fat Goose Fitness' and 'Light of the Lost,' as well as the continued contribution from 'Cardcaptor Sakura: Memory Key'[25](index=25&type=chunk) [Cost of Revenue Analysis](index=12&type=section&id=Cost%20of%20Revenue%20Analysis) Cost of revenue rose 20.6% to RMB 131 million, primarily due to a 221.0% increase in commissions paid to third-party developers and IP holders, driven by higher licensed game revenue Cost of Revenue Composition (For the Six Months Ended June 30) | Cost Nature | 2024 (RMB Thousand) | 2023 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Distribution and Payment Channel Commissions | 69,168 | 70,589 | (2.0) | | Third-Party Game Developer and IP Holder Commissions | 38,173 | 11,892 | 221.0 | | Bandwidth and Server Hosting Fees | 8,953 | 10,287 | (13.0) | | Employee Benefit Expenses | 6,051 | 6,595 | (8.2) | | Others | 8,490 | 9,161 | (7.3) | | **Total** | **130,835** | **108,524** | **20.6** | [Gross Profit and Margin Analysis](index=14&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Gross profit decreased 6.0% to RMB 212 million, with gross margin falling from 68% to 62%, primarily due to the increased proportion of lower-margin licensed game revenue - Gross profit decreased from **RMB 225 million** to **RMB 212 million**, and gross margin declined from **68%** to **62%**[33](index=33&type=chunk) - The decline in gross margin is attributed to the increased proportion of licensed game revenue, which incurs higher commissions to third-party developers and IP holders, thereby lowering the overall gross margin[33](index=33&type=chunk) [Operating Expenses Analysis](index=14&type=section&id=Operating%20Expenses%20Analysis) Operating expenses increased across the board, with sales and marketing up 7.2% to RMB 132 million, R&D up 5.4% to RMB 47.1 million, and G&A up 29.4% to RMB 27.4 million Operating Expenses Overview (For the Six Months Ended June 30) | Expense Item | 2024 (RMB Million) | 2023 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and Marketing Expenses | 131.9 | 123.1 | 7.2% | | Research and Development Expenses | 47.1 | 44.7 | 5.4% | | General and Administrative Expenses | 27.4 | 21.2 | 29.4% | [Other Financial Items Analysis](index=15&type=section&id=Other%20Financial%20Items%20Analysis) Fair value gains on investments surged 536.8% to RMB 42.1 million, while other income plummeted 91.8% due to reduced subsidies, and net other losses expanded to RMB 11.6 million from adverse currency movements - Investment gains measured at fair value increased from **RMB 6.6 million** to **RMB 42.1 million**, primarily due to higher returns from wealth management products[37](index=37&type=chunk) - Net other losses expanded from **RMB 0.1 million** to **RMB 11.6 million**, mainly due to exchange losses incurred by JPY-denominated subsidiaries as the USD appreciated against the JPY[39](index=39&type=chunk) [Income Tax Expense and Profit for the Period](index=16&type=section&id=Income%20Tax%20Expense%20and%20Profit%20for%20the%20Period) Profit for the period decreased 8.4% to RMB 38.2 million due to lower gross profit and higher expenses, while income tax expense significantly dropped 95.5% to RMB 0.8 million - Net profit for the period was **RMB 38.2 million**, an **8.4%** decrease from **RMB 41.7 million** in the prior year[41](index=41&type=chunk)[42](index=42&type=chunk) - Income tax expense significantly decreased by **95.5%** from **RMB 16.7 million** to **RMB 0.8 million**, primarily due to changes in profit structure and recognition of deferred tax assets[40](index=40&type=chunk) [Liquidity, Capital Resources, and Capital Structure](index=17&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Capital%20Structure) As of June 30, 2024, the Group maintained a robust financial position with RMB 422 million in cash, a 1013.9% current ratio, and a healthy 9.8% gearing ratio Key Capital Structure Indicators (As of June 30, 2024) | Indicator | Amount (RMB Million) | | :--- | :--- | | Cash and Cash Equivalents | 421.8 | | Borrowings | 20.0 | | Current Assets | 1,638.5 | | Current Liabilities | 161.6 | | Current Ratio | 1,013.9% | | Gearing Ratio | 9.8% | [Other Financial Information](index=17&type=section&id=Other%20Financial%20Information) The Group increased short-term investments to RMB 1.096 billion for capital efficiency, maintained low capital expenditure, managed foreign exchange risks, and employed 600 full-time staff - To enhance the efficiency of its own funds, the Group's short-term investments (measured at fair value) increased from **RMB 989 million** to **RMB 1.096 billion**[44](index=44&type=chunk) - The Group faces foreign exchange risks, including USD and JPY, which are managed through foreign currency forward contracts[47](index=47&type=chunk) - As of June 30, 2024, the Group had **600** full-time employees, with **17** located overseas[48](index=48&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board resolved not to recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year - The Board does not recommend the payment of an interim dividend for 2024[49](index=49&type=chunk) [Directors' and Major Shareholders' Interests](index=19&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) This section details the shareholding interests of directors and major shareholders as of June 30, 2024, including holdings by executive directors via trusts and key corporate shareholders like Keiskei Holding and Hong Kong Kunpan Major Shareholders' Interests Overview (As of June 30, 2024) | Shareholder Name | Approximate Percentage of Shareholding (%) | | :--- | :--- | | Keiskei Holding Ltd. (Mr. Yang Xu) | 29.81% | | Hong Kong Kunpan (G-bits) | 18.55% | | Rapid Yacht Limited (Mr. Ye Jiting) | 7.26% | | Intelligence QC Ltd. (Mr. Huang Zhiqiang) | 5.40% | | Alibaba Kukar (Alibaba) | 5.34% | [Use of Net Proceeds from Listing](index=23&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The company utilized HKD 865 million of its HKD 926 million listing proceeds by June 30, 2024, with the remaining HKD 61.3 million allocated for product expansion and China market distribution, expected to be fully used by June 2025 Use of Listing Proceeds and Utilization (As of June 30, 2024) | Use of Proceeds | Allocated Amount (HKD Million) | Cumulative Utilized (HKD Million) | Unutilized Amount (HKD Million) | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Expand Game Portfolio and R&D | 324.0 | 296.7 | 27.3 | Before June 2025 | | Expand Overseas Markets | 231.4 | 231.4 | 0 | N/A | | Strengthen China Market Distribution and Operations | 138.9 | 111.9 | 27.0 | Before June 2025 | | Strategic Investments and Acquisitions | 138.9 | 131.9 | 7.0 | Before December 2024 | | Working Capital and General Corporate Purposes | 92.6 | 92.6 | 0 | N/A | | **Total** | **925.8** | **864.5** | **61.3** | | [Corporate Governance and Compliance](index=24&type=section&id=Corporate%20Governance%20and%20Compliance) The company complied with all Corporate Governance Code provisions, directors adhered to securities trading standards, and the Audit Committee reviewed interim financial information with management and the auditor - The Board believes the company complied with all code provisions of the Corporate Governance Code during the reporting period[65](index=65&type=chunk) - The Audit Committee, chaired by Mr. Yuan Yuan, comprises three independent non-executive directors and has reviewed the interim financial information[67](index=67&type=chunk) [Interim Financial Statements](index=25&type=section&id=Interim%20Financial%20Statements) [Review Report on Interim Financial Information](index=25&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) PricewaterhouseCoopers reviewed the interim financial information under ISRE 2410, concluding no material issues regarding its preparation in accordance with IAS 34 - Auditor PricewaterhouseCoopers issued a review conclusion, finding no material issues in the interim financial information[72](index=72&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement details revenue, costs, expenses, profit, and other comprehensive income for H1 2024, reporting RMB 343 million revenue, RMB 212 million gross profit, and RMB 38.2 million profit [Condensed Consolidated Statement of Financial Position](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement outlines the financial position as of June 30, 2024, with total assets at RMB 1.986 billion, total liabilities at RMB 194 million, and total equity at RMB 1.792 billion [Condensed Consolidated Statement of Changes in Equity](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates changes in equity components, including share capital, share premium, and reserves, reflecting the impact of period profit and currency translation differences on shareholders' equity [Condensed Consolidated Statement of Cash Flows](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes cash flows, showing net outflows of RMB 23.9 million from operations, RMB 84.1 million from investing, and RMB 5.2 million from financing, leading to a net decrease of RMB 113 million in cash and equivalents [Notes to the Interim Financial Information](index=33&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) [Note 6: Segment Information and Revenue](index=43&type=section&id=Note%206%3A%20Segment%20Information%20and%20Revenue) The Group operates as a single mobile game segment; Mainland China remains the main revenue source at RMB 199.9 million, while overseas revenue significantly grew to RMB 142.7 million, increasing its proportion of total revenue Revenue Breakdown by Geographical Region (For the Six Months Ended June 30) | Region | 2024 (RMB Thousand) | 2023 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 199,907 | 269,043 | | Other Regions | 142,715 | 64,894 | | **Total** | **342,622** | **333,937** | [Note 12: Income Tax](index=49&type=section&id=Note%2012%3A%20Income%20Tax) Total income tax expense was RMB 0.754 million, significantly lower than prior year, influenced by varied jurisdictional tax rates, preferential rates, non-deductible expenses, and R&D super deductions - Some subsidiaries are recognized as 'software enterprises,' enjoying a 'two-year exemption and three-year half-rate' corporate income tax preferential policy[122](index=122&type=chunk) - The Group is entitled to claim a **200%** super deduction for R&D expenses, which positively impacts the effective tax rate[122](index=122&type=chunk) [Note 31: Related Party Transactions](index=76&type=section&id=Note%2031%3A%20Related%20Party%20Transactions) The Group transacts with related parties, including G-bits Group, paying RMB 1.495 million in marketing fees and receiving RMB 6.206 million in licensing revenue, while paying RMB 24.565 million in developer commissions to associated companies Major Related Party Transactions (For the Six Months Ended June 30, 2024) | Transaction Type | Related Party | Amount (RMB Thousand) | | :--- | :--- | :--- | | Game Licensing Revenue | G-bits Group | 6,206 | | Game Developer Commissions | Chengdu Xingqiwan Technology | 21,100 | | | Shenzhen Jishiwu Technology | 2,551 | | | Shenzhen Requ Network Technology | 914 | | Marketing and Promotion Expenses | Guangzhou Zhuodong Information Technology | 2,980 | | | G-bits Group | 1,495 | Period-End Balances with Related Parties (As of June 30, 2024) | Balance Type | Amount (RMB Thousand) | | :--- | :--- | | Trade Receivables from Related Parties | 7,489 | | Trade Payables to Related Parties | 36,392 | | Prepayments to Related Parties | 35,662 |

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何 損失承擔任何責任。 Qingci Games Inc. 青瓷游戲有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6633） 截 至 2024 年 6 月 3 0 日止六個月之 中期業績公告 青 瓷 遊 戲 有限公司董事會欣然宣佈本集團截至2024年6月30日止六個月的未經審核 綜合財務業績，連同截至2023年6月30日止六個月的比較數字，呈列如下。 本集團截至2024年6月30日止六個月的中期業績已由審核委員會及本公司獨立核數 師 羅 兵 咸 永 道 會 計 師 事 務 所 根 據 國 際 審 計 及 保 證 準 則 委 員 會 刊 發 的《國 際 審 閱 準 則 第2410號》「實 體 的 獨 立 核 數 師 對 中 期 財 務 資 料 的 審 閱」審 閱。 財務摘要 | --- | --- | --- | --- | |--------------------------|-----------------|-- ...

Financial Performance - The total revenue for 2023 reached RMB 905.737 million, an increase of 43.7% compared to RMB 630.367 million in 2022[8] - Gross profit for 2023 was RMB 557.876 million, reflecting a growth of 32.2% from RMB 422.087 million in the previous year[8] - The net loss for 2023 was RMB 37.6 million, a significant decline from a profit of RMB 45.656 million in 2022, representing a change of (182.4)%[8] - Revenue increased by 43.7% year-on-year to approximately RMB 905.7 million for the year ended December 31, 2023, compared to RMB 630.4 million for the previous year[37] - Revenue from self-developed games decreased by 8.9% to approximately RMB 507.7 million, primarily due to a decline in income from "The Strong Snail" in mainland China and Japan[43] - Revenue from licensed games surged by 963.7% to approximately RMB 365.7 million, driven by the launch of "New Legend of Sword and Fairy" and "Cardcaptor Sakura: The Key to Memories" during the reporting period[43] - Game operation revenue increased by 47.6% year-on-year to approximately RMB 873.4 million for the year ended December 31, 2023[40] - Other services and sales revenue rose by 150.0% to approximately RMB 3.6 million, mainly due to growth in technical support services and marketing collaborations[42] User Metrics - The average Monthly Active Users (MAU) increased by 55% to 2.48 million in 2023, up from 1.596 million in 2022[9] - The average Monthly Paying Users (MPU) rose by 88% to 401,000 in 2023, compared to 214,000 in 2022[9] - The cumulative registered players reached 88.343 million, marking a 12% increase from 79.013 million in 2022[9] - The Average Revenue Per Paying User (ARPPU) increased by 15% to RMB 302 in 2023, up from RMB 262 in 2022[9] Game Launches and Portfolio Expansion - New games launched in 2023 include "Magic Plan" in January and "Magic Card Girl Sakura: Memory Key" in September, achieving high rankings in iOS free game charts[12] - The flagship game "The Strongest Snail" generated revenue of RMB 486 million in 2023, with total revenue since launch reaching RMB 3.259 billion[12] - The game "New Legend of Sword and Fairy" launched in June 2023, achieving RMB 288 million in revenue and ranking first in the iOS free game chart[25] - "Cardcaptor Sakura: Memory Key" generated approximately RMB 632.8 million in revenue after its launch in September 2023, topping the iOS free game charts in multiple regions[26] - The company plans to continue expanding its global presence and enhancing its game portfolio[11] - The company plans to expand its game offerings with multiple new mini-program games and enhance its game quality and matrix[18] Marketing and Expenses - Sales and marketing expenses increased by 105.1% year-on-year to approximately RMB 429.2 million, mainly due to the launch of several new games in various regions[50] - The decrease in net profit was primarily due to significant marketing expenses incurred during the launch phase of new games, which were not fully offset by the revenue generated during the reporting period[62] - The adjusted net loss for the year was primarily impacted by the concentrated marketing expenses related to the new game launches[64] Financial Position and Assets - The total cash and cash equivalents decreased by 46.3% to approximately RMB 538.0 million as of December 31, 2023, down from approximately RMB 1,001.9 million as of December 31, 2022[65] - The company's current assets were approximately RMB 1,680.4 million and current liabilities were approximately RMB 220.8 million as of December 31, 2023, resulting in a current ratio of 761%[66] - The asset-to-liability ratio as of December 31, 2023, was 13%, compared to 8% as of December 31, 2022[66] Management and Governance - The company has 643 full-time employees as of December 31, 2023, with the majority located in China[103] - The company provides competitive compensation and benefits, including monthly social insurance contributions for employees[103] - The company encourages employee training and development to enhance skills and keep up with industry trends[104] - The independent non-executive directors confirmed that transactions under the contractual arrangements were approved by the board and complied with relevant terms as of December 31, 2023[171] Risks and Compliance - The company faces various risks related to its gaming publishing business, particularly in the Chinese regulatory environment[90] - The company has complied with all relevant laws and regulations affecting its business operations in China during the reporting period[91] - The company acknowledges significant uncertainties regarding the interpretation and implementation of the Foreign Investment Law and its potential impact on the current corporate structure and operations[168] Future Plans - The company plans to fund future capital expenditures with cash generated from operations[74] - The company plans to expand its overseas market presence, with the flagship game "The Strong Snail" set to launch in South Korea and additional language versions for Southeast Asia and Europe in 2024[1] - The company has a pipeline of mobile games, including "Ares Virus 2" and "Knight Charge," expected to be released in 2024, with ongoing development and optimization[33]

] y r t s u d n I _ e l b a T [ [Table_Title] 青瓷游戏（06633.HK）动态点评 公 司 研 业绩短期承压，关注后续新游上线表现 究 挖掘价值 投资成长 / [Table_Rank] 互 增持 （首次） 联 网 2024 年 04 月 03 日 / 证 券 [东Ta方bl财e_富Au证th券or研] 究所 研 究 [【Tab事le_项Sum】ma ry] 证券分析师：高博文 报 证书编号：S1160521080001 告  公司于3月26日发布2023年度业绩公告。2023年公司实现收入9.06 证券分析师：陈子怡 亿元（yoy+43.7%）；归母净亏损3737万元，去年同期为盈利5028万元。 证书编号：S1160522070002 联系人：潘琪 电话：021-23586487 【评论】 [相Ta对b指le数_P表ic现Qu ote]  收入多元化，稳步增长。2023年公司实现收入9.06亿元（yoy+43.7%）， 0.00% 游戏运营收入中，自研游戏收入为5.08亿元（yoy-8.9%），主系《最强 -11.76% 蜗牛》内地版收入略有下滑；授权游戏收 ...

各位晚上好欢迎各位参加新词游戏2023年全年业绩发布会我是公司的IR Elaine王一兰本次参会的管理层有首席执行官黄志强先生首席财务官刘思明先生以及资本市场总监及公司秘书朱成印先生管理层会先为各位介绍公司的业务情况之后会有问答的环节我们请首席执行官黄志强先生为各位介绍公司在2023年的业务回顾有请黄总各位晚上好 我是青池游戏的CEO黄志强我现在向各位介绍一下青池2023年的业绩情况2023年青池稳中求进业务获得了长足进展以下是几个主要的亮点一是持续推动全球业务布局包括推动多款游戏于全球不同地区的上线 以及深耕海外地區遊戲長線運營我們的旗艦遊戲《最強蝸牛》在2023年上線了泰國、美國、加拿大、澳洲及新西蘭等地區並在2023年6月迎來了日本地區上線一周年我們的海外影響力持續擴大而《摩卡少女鷹回憶鑰匙》也上線了港澳台地區以上佈局讓我們收穫了 不少的优质玩家收入也得到了进一步的提升二是完成了多款新游戏的上线2023年我们上线了史摩计划新仙剑奇侠传之灰剑问情摩卡少女鹰回忆钥匙以及时光旅行社等游戏产品的矩阵进一步丰富收入结构也持续的优化 三是我们丰富及完善了游戏的储备2023年我们有多款储备游戏获得了版号比如骑士冲压2 ...

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 905.74 million, an increase of 43.7% compared to RMB 630.37 million in 2022[2] - Gross profit for the same period was RMB 557.88 million, up 32.2% from RMB 422.09 million in 2022[2] - The company reported a net loss of RMB 37.60 million, a decline of 182.4% from a profit of RMB 45.66 million in the previous year[2] - Revenue increased by 43.7% year-on-year to approximately RMB 905.7 million for the year ended December 31, 2023, compared to RMB 630.4 million for the previous year[18] - Game operation revenue rose by 47.6% year-on-year to approximately RMB 873.4 million for the year ended December 31, 2023[20] - Revenue from self-developed games decreased by 8.9% to approximately RMB 507.7 million, primarily due to a decline in income from "The Strong Snail" in the domestic and Japanese markets[20] - Revenue from licensed games surged by 963.7% to approximately RMB 365.7 million, driven by new launches such as "New Sword and Fairy: The Sword Questioning Love" and "Cardcaptor Sakura: The Key of Memories"[20] - The net loss for the year increased by 182.4% from a profit of approximately RMB 45.7 million for the year ended December 31, 2022, to a net loss of approximately RMB 37.6 million for the year ended December 31, 2023, attributed to marketing expenses for new game launches[36] - The net profit attributable to equity holders decreased by 174.3% from approximately RMB 50.3 million for the year ended December 31, 2022, to a net loss of approximately RMB 37.4 million for the year ended December 31, 2023, primarily due to marketing expenses for flagship games[37] User Metrics - Average Monthly Active Users (MAU) reached 2.48 million, representing a 55% increase from 1.60 million in 2022[4] - Average Monthly Paying Users (MPU) increased by 88% to 401,000 from 214,000 in the previous year[4] - Cumulative registered players reached 88.34 million, a 12% increase from 79.01 million in 2022[4] - Average Revenue Per Paying User (ARPPU) was RMB 302, reflecting a 15% increase from RMB 262 in the previous year[4] - The player community, known as "Qingci Iron Fans," grew to 13.3587 million members, representing a 25.71% increase year-over-year[11] Game Development and Launches - New game launches included "Magic Plan" in January 2023 and "Sakura Cardcaptor: Memory Key" in September 2023, contributing to revenue diversification[7][8] - The company plans to launch several new games in 2024, including "Blade Heart 2" and "Fat Goose Gym," which have already achieved top rankings in their respective categories[12] - The company has a pipeline of mobile games in development, including "Ares Virus 2" and "Knight Charge," expected to launch in 2024[13] - The flagship game "The Strong Snail" will continue its long-term operation while expanding into the Korean market and launching localized versions in various languages in 2024[15] - The company aims to enhance its product matrix by introducing multiple mini-program games, including self-developed titles and licensed games[16] Revenue Sources and Trends - The company’s overseas revenue increased by RMB 98.1 million, rising from 25.3% to 28.5% of total revenue[6] - Revenue from the mainland China market reached RMB 647,890 thousand, up 37.6% from RMB 470,584 thousand in 2022[64] - Game licensing revenue decreased by 30.7% year-on-year to approximately RMB 18.9 million for the year ended December 31, 2023, primarily due to a decline in revenue from "Unexpected Maze" in mainland China and "Strong Snail" in Hong Kong, Macau, and Taiwan[21] Expenses and Financial Management - Cost of revenue increased by 67.0% year-on-year to approximately RMB 347.9 million for the year ended December 31, 2023, compared to RMB 208.3 million for the previous year[23] - Sales and marketing expenses increased by 105.1% year-on-year to approximately RMB 429.2 million for the year ended December 31, 2023, primarily due to the launch of "Strong Snail" in various regions[28] - Research and development expenses decreased by 6.9% year-on-year to approximately RMB 105.5 million for the year ended December 31, 2023, mainly due to a reduction in bonuses for R&D personnel[29] - General and administrative expenses decreased by 31.8% year-on-year to approximately RMB 49.0 million for the year ended December 31, 2023, primarily due to a reduction in bonuses related to support staff[30] Cash Flow and Assets - As of December 31, 2023, the total cash and cash equivalents decreased by 46.3% to approximately RMB 538.0 million from RMB 1,001.9 million as of December 31, 2022[42] - Current assets amounted to approximately RMB 1,680.4 million, while current liabilities were approximately RMB 220.8 million, resulting in a current ratio of 761% as of December 31, 2023, down from 1,145% in 2022[43] - The group's total short-term investments increased by 101.9% to approximately RMB 988.9 million as of December 31, 2023, from RMB 489.7 million in 2022, attributed to improved cash asset returns[44] - Total assets increased to RMB 1,998,828 thousand in 2023 from RMB 1,916,402 thousand in 2022, representing a growth of approximately 4.3%[51] - Total liabilities increased to RMB 255,968 thousand in 2023 from RMB 157,502 thousand in 2022, reflecting a significant rise of about 62.5%[52] Government Support and Grants - Other income primarily includes government subsidies granted to support R&D activities and recognize contributions to local economic development[32] - Other income increased by 120.7% from approximately RMB 6.0 million for the year ended December 31, 2022, to approximately RMB 13.3 million for the year ended December 31, 2023, mainly due to increased government subsidies[33] - The company received government grants totaling RMB 13,230 thousand in 2023, compared to RMB 5,930 thousand in 2022[66] Shareholder Information and Future Plans - The company has not declared or paid any dividends for the year ending December 31, 2023, following a dividend of approximately RMB 89.32 million for the previous year[78] - The annual general meeting is scheduled for June 6, 2024, with the notice to be published in April 2024[87] - The board has decided not to recommend any final dividend for the year ending December 31, 2023, similar to the previous year[88] - The company aims to strengthen its game publishing and operation capabilities in the Chinese mobile gaming market, with a budget of RMB 138.9 million allocated for this purpose[81]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 333.94 million, representing a 25% increase from RMB 268.11 million in the same period of 2022[10]. - Gross profit for the same period was RMB 225.41 million, a 36% increase from RMB 166.01 million year-on-year[10]. - The net profit attributable to equity holders was RMB 41.48 million, compared to a loss of RMB 75.67 million in the previous year, marking a significant turnaround[10]. - Total revenue for the six months ended June 30, 2023, was RMB 333.9 million, a 24.6% increase from RMB 268.1 million in the same period of 2022[25]. - Operating profit improved to RMB 51,848 thousand, compared to an operating loss of RMB 62,538 thousand in the prior year[73]. - Net profit for the period was RMB 41,717 thousand, a significant recovery from a net loss of RMB 86,872 thousand in the previous year[74]. - Basic and diluted earnings per share for the period were RMB 0.06, compared to a loss per share of RMB 0.11 in the same period last year[74]. - Total comprehensive income for the period was RMB 84,801 thousand, compared to a loss of RMB 30,072 thousand in the prior year[74]. User Engagement and Game Performance - Average Monthly Active Users (MAU) decreased to 1.80 million, down 23% from 2.35 million in the prior year[11]. - Average Revenue Per Paying User (ARPPU) increased by 41% to RMB 296 from RMB 209 year-on-year[11]. - Cumulative registered players reached 82.37 million, an 8% increase from 76.16 million in the previous year[11]. - The average weekly player retention rate for "Strong Snail" reached 25.9%, indicating strong player engagement[15]. - The game "Super Snail" generated approximately RMB 210 million in revenue during the reporting period, achieving top rankings in various regions including Thailand and the US[16]. - "New Legend of Sword and Fairy" launched on June 9, 2023, and recorded revenue of approximately RMB 68.3 million, reaching the top position in the iOS free games chart and 14th in the sales chart[17]. - "The Lantern and the Dungeon" has accumulated revenue of approximately RMB 303 million since its launch, with a total of 5.07 million registered players and an average weekly retention rate of 31.72%[17]. - The game "Summoner's Plan" launched in January 2023, generating approximately RMB 27.8 million in revenue by June 30, 2023[17]. Game Development and Launches - The company launched several new games, including "Magic Plan" in January 2023 and "New Legend of the Swordsman" in June 2023, achieving top rankings in various app stores[14]. - The game "Strong Snail" was launched in multiple international markets, including the US, Canada, and Australia, topping the free game charts in these regions[14]. - The company is preparing to release new self-developed games and licensed titles in the second half of 2023, enhancing its game portfolio[14]. - The company has a pipeline of 12 mobile games across various genres, with expected launch dates ranging from 2023 to 2025[21]. Revenue Sources and Costs - The company's game operation revenue increased by 28.2% to RMB 318.4 million for the six months ended June 30, 2023, compared to RMB 248.3 million in the same period of 2022[26]. - Revenue from self-developed games rose by 5.6% to RMB 237.9 million, driven by new game launches in Thailand and ongoing operations in Japan[26]. - Revenue from licensed games surged by 248.7% to RMB 80.4 million, primarily due to the new game "New Sword and Fairy" contributing to revenue growth[26]. - Game licensing revenue decreased by 24.5% to RMB 11.3 million, attributed to reduced licensing income from certain games in mainland China and Hong Kong, Macau, and Taiwan[27]. - Information service revenue fell by 47.8% to RMB 2.5 million, mainly due to a decrease in ad views or clicks within games[28]. - The cost of revenue increased by 6.3% to RMB 108.5 million, with distribution and payment channel commissions accounting for 65.0% of total costs[31]. Expenses and Financial Management - Employee benefit expenses decreased by 22.5% to RMB 6.6 million, reflecting a reduction in related employee costs[32]. - Sales and marketing expenses decreased by 18.9% from RMB 151.7 million to RMB 123.1 million, primarily due to reduced marketing expenses for "The Strongest Snail" in Japan[34]. - Research and development expenses decreased by 19.7% from RMB 55.6 million to RMB 44.7 million, mainly due to reduced employee costs and outsourced technical service fees[35]. - General and administrative expenses decreased by 48.4% from RMB 41.1 million to RMB 21.2 million, attributed to lower employee costs and reduced professional service fees[36]. - Fair value gains on investments decreased by 41.2% from RMB 11.2 million to RMB 6.6 million, primarily due to decreased fair value gains from investment funds and poor performance of certain long-term investments[37]. - Other income increased by 103.5% from RMB 4.5 million to RMB 9.2 million, mainly due to an increase in government subsidies[38]. Financial Position and Assets - Total cash and cash equivalents decreased by 30.9% from RMB 1,001.9 million to RMB 692.4 million, mainly due to the use of funds raised from a global offering and short-term investments[42]. - Current assets amounted to approximately RMB 1,738.5 million, with current liabilities of approximately RMB 153.9 million, resulting in a current ratio of 1,129.7% as of June 30, 2023[42]. - The debt-to-asset ratio improved from 17.5% to 9.2% as of June 30, 2023, indicating a stronger financial position[42]. - As of June 30, 2023, the company's short-term investments increased by 82.9% to approximately RMB 895.7 million from RMB 489.7 million as of December 31, 2022[43]. - The total capital expenditure for the six months ended June 30, 2023, was approximately RMB 1.1 million, a decrease from RMB 7.7 million for the same period in 2022[45]. - The company had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[44]. Shareholder Information and Corporate Governance - Major shareholders include Mr. Yang, who holds 29.81% of the shares, and Mr. Huang, who holds 3.62% and 5.40% through controlled entities[49]. - The board of directors has resolved not to recommend an interim dividend for the six months ended June 30, 2023[48]. - The company has complied with all corporate governance code provisions during the reporting period[65]. - All directors confirmed compliance with the standard code for securities trading during the six months ending June 30, 2023[66]. Future Plans and Investments - The company plans to deepen its market presence in Southeast Asia and is preparing to launch an H5 version of "Super Snail" in Q4 2023[22]. - The company plans to enhance its game publishing and operational capabilities in the mobile gaming market, with an investment of HKD 138.9 million expected by December 2024[63]. - Strategic investments and acquisitions in the mobile gaming industry are projected to require HKD 138.9 million, also expected by December 2024[63]. - The company plans to reinvest accumulated undistributed profits of RMB 304 million to further expand its business in China[123].