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].

Financial Data and Key Metrics Changes - The company reported significant financial performance in the first half of 2023, with a focus on revenue growth and profitability metrics [1] Business Line Data and Key Metrics Changes - Specific business lines showed varied performance, with some segments outperforming expectations while others faced challenges [1] Market Data and Key Metrics Changes - The company highlighted its market position and competitive landscape, indicating shifts in market share and customer demand across different regions [1] Company Strategy and Development Direction - The management outlined strategic initiatives aimed at enhancing operational efficiency and expanding market reach, emphasizing innovation and customer-centric approaches [1] Management Comments on Operating Environment and Future Outlook - Management provided insights into the current operating environment, discussing macroeconomic factors and their potential impact on future performance [1] Other Important Information - Additional information included updates on regulatory changes and their implications for the business, as well as ongoing investments in technology and infrastructure [1] Q&A Session Summary Question: What are the key drivers of growth for the company in the upcoming quarters? - Management indicated that product innovation and market expansion are primary growth drivers, alongside strategic partnerships [1] Question: How does the company plan to address competitive pressures? - The response highlighted a focus on enhancing customer value propositions and leveraging technology to differentiate from competitors [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何 損失承擔任何責任。 Qingci Games Inc. 青瓷遊戲有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6633） 截 至 2023 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2023年6月30日止六個月的未經審核 綜合財務業績，連同截至2022年6月30日止六個月的比較數字，呈列如下。 本集團截至2023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 - Total revenue for the year ended December 31, 2022, was RMB 630.37 million, a decrease of 43% compared to RMB 1,105.82 million in 2021[11] - Gross profit for the same period was RMB 422.09 million, down 48% from RMB 812.60 million in the previous year[11] - The company reported a net profit of RMB 45.66 million, a significant recovery from a net loss of RMB 368.64 million in 2021, marking a 112% improvement[11] - The adjusted net profit for the year was RMB 46.18 million, down 89% from RMB 422.15 million in 2021[11] - The adjusted profit attributable to equity holders of the company was RMB 50.70 million, a decrease of 88% compared to RMB 423.55 million in the previous year[11] - Total revenue for 2022 reached approximately RMB 630 million, with adjusted profit for the second half of the year at RMB 126 million, reversing the loss from the first half[15] - The adjusted profit for the full year was approximately RMB 50.7 million, despite a decrease in revenue compared to the previous year[19] User Engagement and Metrics - Average Monthly Active Users (MAU) decreased by 37% to 1.60 million from 2.54 million in 2021[12] - Average Monthly Paying Users (MPU) fell by 51% to 214,000 from 440,000 in the previous year[12] - The cumulative registered players increased by 10% to 79.01 million from 71.96 million in 2021[12] - The Average Revenue Per Paying User (ARPPU) rose by 17% to RMB 262 from RMB 224 in 2021[12] - The player community, "Qingci Iron Fans," has grown to 10.6264 million members, reflecting a 0.91% increase from the previous year[22] - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[141] Game Development and Launches - The company plans to launch multiple premium games in 2023, including "New Legend of the Swordsman" and "Time Travel Agency," while continuing to expand its overseas market presence[17] - The game "Magic Card Girl Sakura: Memory Key" will be launched in collaboration with Zhong Shou You, further enriching the game portfolio[16] - The self-developed game "Magic Plan" generated approximately RMB 2.55 million in revenue within the first two months of its launch[26] - The game "Time Travel Agency" is expected to officially launch in 2023, combining elements of Rogue-like RPG, card games, and auto chess[26] - The company plans to continue expanding its game portfolio, including launching 12 mobile games across various genres by the end of 2025[24] Revenue Sources and Trends - Revenue from self-developed games fell by 29.5% to approximately RMB 557.6 million, primarily due to the maturity of "The Strongest Snail" in the Chinese market[30] - Revenue from licensed games decreased by 86.8% to approximately RMB 34.4 million, mainly due to the maturity of "Lantern and Underground City"[30] - Information service revenue dropped by 50.1% to approximately RMB 9.6 million, attributed to a decrease in ad views or clicks within games[33] - The total revenue from all games during the reporting period amounted to approximately RMB 575 million[21] Cost and Expense Management - The company's total income cost decreased by 29.0% from approximately RMB 293.2 million to RMB 208.3 million[34] - Commissions paid to distribution and payment channels decreased by 29.3% to approximately RMB 146.3 million, reflecting a decline in game operation revenue[36] - Employee benefit expenses increased by 97.2% to approximately RMB 18.1 million due to an increase in employee numbers and average salaries[36] - Sales and marketing expenses decreased by 31.2% from approximately RMB 304.2 million for the year ended December 31, 2021, to approximately RMB 209.3 million for the year ended December 31, 2022[39] - Research and development expenses increased by 24.2% from approximately RMB 91.2 million for the year ended December 31, 2021, to approximately RMB 113.3 million for the year ended December 31, 2022[40] Corporate Governance and Compliance - The company is committed to promoting a sustainable and environmentally friendly environment[65] - The company has complied with all relevant laws and regulations affecting its business operations in China during the reporting period[67] - The company manages foreign exchange risk primarily through foreign currency forward contracts[58] - The company is committed to maintaining a robust corporate governance structure with independent directors providing oversight[137] Intellectual Property and Awards - The company has established a knowledge property management system to protect its intellectual property rights, adhering to relevant laws and regulations[175] - The company has received multiple awards, including the "2022 Annual Outstanding Overseas Brand" at the Global Products and Growth Conference[181] - The company has been recognized as a "High-tech Enterprise" by the Xiamen Science and Technology Bureau and other authorities[179] Employee and Workplace Policies - The company emphasizes strict compliance with the Labor Law and Labor Contract Law of the People's Republic of China, ensuring employee rights are protected[187] - The company has established clear dismissal standards and processes to safeguard employee rights, ensuring no arbitrary dismissals occur[188] - The company is committed to creating an equal and diverse workplace, actively promoting the recruitment and development of female talent[190] ESG Initiatives - The company plans to enhance its ESG initiatives, with specific goals set for reducing carbon emissions by 20% over the next three years[148] - The board of directors has approved the ESG report, which highlights the company's commitment to sustainable practices[146] - The company has established an ESG oversight committee to manage and report on ESG matters regularly[148] Market Expansion and Future Plans - The company has set a target to expand its market presence in Southeast Asia, aiming for a 30% increase in market share by 2025[141] - New product launches are expected to contribute an additional RMB 100 million in revenue in the next fiscal year[144] - The company anticipates diversifying its revenue base by providing marketing services to third-party game developers, including Gibit Group, as it continues to develop and operate more games[105]

Financial Performance - Total revenue for the year ended December 31, 2022, was approximately RMB 630.4 million, a decrease of 43% compared to RMB 1,105.8 million in 2021[2] - Gross profit for the same period was RMB 422.1 million, down 48% from RMB 812.6 million in the previous year[2] - The net profit attributable to equity holders was RMB 50.3 million, a significant turnaround from a loss of RMB 367.2 million in 2021[2] - Revenue decreased by 43.0% from approximately RMB 1,105.8 million in 2021 to RMB 630.4 million in 2022[14] - Revenue from self-developed games decreased by 29.5% to approximately RMB 557.6 million, primarily due to the maturity of "The Strongest Snail" in mainland China[16] - Revenue from licensed games decreased by 86.8% to approximately RMB 34.4 million, mainly due to the maturity of "Lantern and Dungeon"[16] - Information services revenue decreased by 50.1% to approximately RMB 9.6 million, attributed to a decline in ad views and clicks within games[18] - Gross profit decreased by 48.1% to approximately RMB 422.1 million, with a gross margin decline from 73% in 2021 to 67% in 2022[22] - Operating profit for the year ended December 31, 2022, was RMB 86.6 million, down from RMB 337.2 million in 2021[41] - Adjusted net profit decreased by 89.1% from approximately RMB 4,221 million for the year ended December 31, 2021, to approximately RMB 462 million for the year ended December 31, 2022, primarily due to the maturity of flagship games and increased R&D investment[34] User Metrics - Average Monthly Active Users (MAU) decreased by 37% to 1.6 million from 2.5 million in 2021[4] - Average Monthly Paying Users (MPU) fell by 51% to 214,000 from 440,000 in the previous year[4] - The cumulative registered players increased by 10% to 79.0 million from 72.0 million in 2021[4] - As of December 31, 2022, the company has accumulated 10.6264 million active players through various social media platforms, representing a growth of 0.91% compared to the end of the previous year[8] Game Development and Releases - The game "The Strongest Snail" generated cumulative revenue of approximately RMB 2.75 billion, with over 23.5 million registered players[6] - The game "The Strongest Snail" achieved revenue of approximately RMB 136 million in Japan within the first week of its launch[6] - The flagship game "The Strongest Snail" was released in Thailand on January 29, 2023, reaching the top of the free game rankings and peaking at fifth place in the sales rankings[11] - The self-developed game "The Magic Plan" generated approximately RMB 25.5 million in revenue within two months of its launch from January 4 to March 4, 2023[12] - The company is preparing to launch the self-developed game "Time Travel Agency" within the year, which combines elements of Rogue-like RPG, card games, and auto chess[12] - The company plans to release the licensed game "New Legend of the Swordsman" in the first half of 2023, featuring high-fidelity recreations of classic single-player storylines[13] - Two new licensed games, "Project 36Z" and "Project V," were added to the game reserve as of March 10, 2023, focusing on simulation and idle gameplay respectively[10] - The company has a game reserve of 12 mobile games, covering various genres including RPG, SLG, and ACT RPG, with plans to expand into overseas markets and develop new original IP games[9] Financial Position and Investments - Total assets increased to RMB 1,916,402 thousand in 2022 from RMB 1,868,903 thousand in 2021, representing a growth of 2.5%[43] - Non-current assets rose to RMB 302,793 thousand in 2022, up from RMB 253,020 thousand in 2021, marking an increase of 19.6%[43] - Total liabilities decreased to RMB 157,502 thousand in 2022 from RMB 222,568 thousand in 2021, a reduction of 29.3%[44] - The company's equity attributable to owners increased to RMB 1,763,427 thousand in 2022 from RMB 1,646,142 thousand in 2021, an increase of 7.1%[43] - The company completed a public offering, raising approximately RMB 744 million after expenses, with 85,000,000 new ordinary shares issued at HKD 11.20 each[69] - The net proceeds from the global offering amounted to approximately HKD 925.8 million after deducting underwriting fees and other estimated expenses[73] - HKD 324.0 million is allocated for expanding the game product portfolio and investing in game R&D capabilities, with HKD 95.2 million already utilized[74] - HKD 231.4 million is designated for expanding overseas business, with HKD 178.8 million already utilized[74] - HKD 138.9 million is allocated to strengthen game publishing and operation capabilities in the Chinese mobile game market, with HKD 61.9 million already utilized[74] - The company plans to make strategic investments and acquisitions in upstream and downstream companies in the mobile gaming industry, with HKD 138.9 million allocated and HKD 93.2 million already utilized[74] Expenses and Cost Management - Sales and marketing expenses decreased by 31.2% from approximately RMB 304.2 million in 2021 to RMB 209.3 million in 2022, mainly due to reduced marketing expenses for mature games[23] - Cost of revenue decreased by 29.0% to approximately RMB 208.3 million, with significant reductions in commissions paid to distribution channels[19] - Employee benefit expenses increased by 97.2% to approximately RMB 18.1 million, driven by an increase in employee numbers and average salaries[21] - R&D expenses increased by 24.2% from approximately RMB 912 million for the year ended December 31, 2021, to approximately RMB 1,133 million for the year ended December 31, 2022, primarily due to increased investment in game development and a rise in the number of R&D personnel[25] - General and administrative expenses decreased by 17.4% from approximately RMB 869 million for the year ended December 31, 2021, to approximately RMB 718 million for the year ended December 31, 2022, mainly due to the elimination of one-time listing expenses of approximately RMB 458 million in 2021[26] Taxation and Income - Income tax expense increased to approximately RMB 329 million for the year ended December 31, 2022, from an income tax benefit of approximately RMB 326 million for the year ended December 31, 2021, mainly due to an increase in the applicable tax rate for a profitable subsidiary[30] - The company reported a total tax expense of RMB 32,879 thousand for the year ended December 31, 2022, compared to a tax benefit of RMB 32,627 thousand in 2021[61] - Other income decreased by 45.8% from approximately RMB 111 million for the year ended December 31, 2021, to approximately RMB 60 million for the year ended December 31, 2022, mainly due to a reduction in R&D subsidies and government grants[28] Corporate Governance and Future Outlook - The company has complied with all corporate governance codes during the reporting period[75] - The company expresses gratitude to shareholders and business partners for their continued support and acknowledges the efforts of its employees[86] - The annual general meeting is scheduled for June 6, 2023, with the notice to be published in April 2023[80] - The company is actively seeking quality game projects to diversify its game portfolio and expand its entertainment content offerings[13] - The "Qingyu" platform is being developed to enhance player engagement and brand recognition, featuring customer service, live streaming, and social interaction capabilities[8]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 268.1 million, a decrease of 64.9% compared to RMB 762.9 million for the same period in 2021[9]. - Gross profit for the same period was RMB 166.0 million, down 71.1% from RMB 574.5 million in 2021[9]. - The loss attributable to equity holders of the company was RMB 75.7 million, a 19.3% improvement from a loss of RMB 93.8 million in the previous year[9]. - The adjusted net loss for the period was RMB 86.9 million, a significant decline from a profit of RMB 313.7 million in the same period of 2021, representing a 127.7% change[9]. - The net loss for the reporting period decreased by 7.4% from RMB 93.8 million for the six months ended June 30, 2021, to RMB 86.9 million for the six months ended June 30, 2022, attributed to several factors including the maturity of flagship games and increased marketing expenses for new game launches[36]. - The total comprehensive loss for the period was RMB 30,072 thousand, compared to a total comprehensive loss of RMB 86,872 thousand in the previous period, showing an improvement in overall performance[78]. User Engagement - Average Monthly Active Users (MAU) decreased by 23.4% to 2.35 million from 3.06 million in the prior year[10]. - Average Monthly Paying Users (MPU) fell by 50.6% to 284,000 compared to 575,000 in the same period last year[10]. - Cumulative registered players increased by 12.0% to 76.16 million from 67.98 million in the previous year[10]. - The average monthly active users (MAU) for the first half of 2022 was approximately 2.35 million, with an ARPPU of RMB 209[11]. - The player retention rate for "The Strongest Snail" exceeded 26.1% since its launch, while "Lantern and Underground City" had a retention rate of 32.68%[12][13]. Game Development and Strategy - The company is focusing on new product development and market expansion strategies to improve future performance[9]. - The company aims to continue expanding its game offerings and enhance its competitive edge through a robust research and development model[15]. - The company has 13 mobile game projects in development, including RPG, SLG, and ACT RPG genres, with expected launch dates ranging from 2022 to 2024[16]. - The company has made significant progress in its game pipeline, including the introduction of new games such as "New Sword and Fairy: The Sword Questioning Love" and "Code: Key"[15]. - The company is preparing to launch "The Strong Snail" in Thailand and North America, along with an H5 version for broader access[17]. Revenue Breakdown - Revenue from game operations decreased by 66.0% to RMB 248.3 million for the six months ended June 30, 2022, primarily due to the maturity of "The Strong Snail" in the Chinese market[21]. - Revenue from self-developed games fell by 54.6% to RMB 225.2 million during the same period, attributed to the same maturity issue[21]. - Revenue from licensed games dropped by 90.1% to RMB 23.1 million, mainly due to the maturity of "Lantern and Underground City"[22]. - Revenue from service transferred over time was RMB 119,905 thousand, down from RMB 389,478 thousand, indicating a decrease of 69.1%[105]. - Revenue from mainland China was RMB 233,522 thousand, a decrease of 68.5% from RMB 742,945 thousand in 2021[106]. Expenses and Costs - Research and development expenses increased by 208.4% from RMB 18.0 million to RMB 55.6 million, mainly due to an increase in the number of employees and average salaries[30]. - Sales and marketing expenses decreased by 38.1% from RMB 245.1 million to RMB 151.7 million, attributed to the maturity of certain games[29]. - Employee benefits expenses increased significantly to RMB 113,966 thousand from RMB 36,074 thousand, reflecting a rise of 215.5%[107]. - Commission from distribution and payment channels decreased by 48.4% to RMB 67.995 million, primarily due to a decline in gaming operation revenue[27]. - Revenue cost decreased by 45.8% from RMB 188.4 million for the six months ended June 30, 2021, to RMB 102.1 million for the six months ended June 30, 2022[25]. Financial Position - The total cash and cash equivalents decreased by 31.3% from RMB 1,168.1 million as of December 31, 2021, to RMB 802.6 million as of June 30, 2022, primarily due to the use of funds raised from global offerings and short-term investments[40]. - The current ratio as of June 30, 2022, was 527.7%, compared to 438.5% as of June 30, 2021, indicating improved liquidity[40]. - The debt-to-asset ratio as of June 30, 2022, was 17.5%, down from 192.6% as of June 30, 2021, reflecting a significant reduction in liabilities[40]. - The company held investment funds and financial products with a fair value of approximately RMB 355.3 million as of December 31, 2021, with specific investments representing over 5% of total assets[41]. - The total liabilities increased to RMB 335,753 thousand from RMB 222,568 thousand, marking a rise of approximately 50.8%[75]. Shareholder Information - The total number of issued shares as of June 30, 2022, was 691,330,500[49]. - The ownership structure shows that Mr. Yang holds 29.81% of the shares through Keiskei Holding Ltd.[49]. - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2022[48]. - The company declared a dividend distribution of RMB 89,320 thousand for the period ending June 30, 2022, compared to RMB 180,000 thousand for the year ending December 31, 2021[196]. - The company raised approximately HKD 71 million (equivalent to RMB 58 million) by issuing 6,330,500 new ordinary shares at HKD 11.20 per share on January 12, 2022[171]. Taxation and Compliance - The income tax expense increased by 240.4% from RMB 9.5 million for the six months ended June 30, 2021, to RMB 13.4 million for the six months ended June 30, 2022, primarily due to an increase in the applicable tax rate for a profitable subsidiary[35]. - The total tax expense for the six months ended June 30, 2022, was RMB 13,373,000, compared to a tax benefit of RMB 9,528,000 for the same period in 2021[116]. - The company has complied with all corporate governance codes during the reporting period[64]. - The company has not recognized deferred tax assets for tax losses, resulting in a tax expense of RMB 13,373,000 for the reporting period[118]. - The group has claimed an excess deduction of 175% on R&D expenses, impacting the taxable profit calculation[114].