NPC不仅可根据玩家历史行为生成差异化对话,也可根据玩家指令进行游戏内的交互操作,相当于一个想的agent。实际上,在23年,我们在《都拉拉生殖记》当中有过初步的实验。 他的代号是叫小五,相当于游戏当中的一个指引者和引导者的一个NPC的角色。但是当时受限于模型能力本身和token的价格,其实实现的效果还不是特别令人满意,他能进行的操作是相对比较有限的。但是在这两年当中,AI行业本身发生了很大的变化。 我们也在持续地对本身的想法进行一个迭代和突破所以我们希望在未来能够看到更好的效果此外,在报厂盟主当中我们应用深度学习训练游戏内的关卡一方面是提供AI玩家陪玩服务 帮助他们度过新手引导期以及在长期帮助他们有更好的体验另外一方面我们也使用深入学习来帮助观察国际字节这块的话我们觉得随着未来有新的上线大家可以做一个参考 然后这边是我们一个美术这边的生产界面大家可以看到有不同的模型的应用并且我们是把它集成到了各种功能上其实不同的工具它擅长的跨界是不一样的比方说有的它可能擅长扩图有的擅长抠图有的擅长一些画质增强等等 美术风格也都是不一样的那其实对于我们美术的小伙伴来说的话呢他们的这个使用的门槛和学习的门槛还是相对会比较高可能 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 1,162,786,000, representing a 10.1% increase from RMB 1,056,033,000 in 2023[5] - Gross profit for the same period was RMB 813,522,000, reflecting a 15.8% increase compared to RMB 702,405,000 in 2023[5] - The company achieved a significant reduction in loss before tax, reporting a loss of RMB 35,834,000, down 50.9% from RMB 72,928,000 in the previous year[5] - The net loss for the year was RMB 48,856,000, a 64.6% improvement from RMB 138,120,000 in 2023[5] - The adjusted net loss, excluding share-based compensation expenses, was RMB 42,842,000, a 67.8% decrease from RMB 132,954,000 in the prior year[5] - The total revenue for the year ended December 31, 2024, was approximately RMB 1,162.8 million, representing a year-on-year growth of about 10.1%[18] - The net loss for the year was approximately RMB 48.9 million, narrowing by about 64.6% compared to the same period last year[18] - Adjusted net loss for the year was approximately RMB 42.8 million, narrowing by about 67.8% year-on-year[18] - The company reported a total comprehensive loss of RMB (46,586,000) for the year, improving from RMB (131,781,000) in the previous year[57] - The company reported a loss attributable to ordinary shareholders of RMB 48,856,000 for 2024, compared to a loss of RMB 138,120,000 for 2023[75] Revenue Drivers - Revenue growth was primarily driven by the launch of "Floating Life: Memories of Linglong" and "Ink Sword Jianghu," along with significant contributions from mini-games like "Lingyun Nuo H5" and "Dulala Promotion Record H5" which entered the top 50 in WeChat mini-games and top 30 in Douyin mini-games[19] - The company achieved a quarter-on-quarter revenue growth of approximately 20.7% in the first half of 2024 and about 21.0% in the second half of 2024[19] - Game revenue for 2024 was RMB 1,162.1 million, accounting for 99.9% of total revenue, reflecting a 10.1% year-over-year increase from RMB 1,055.4 million[95] Product Development and Strategy - The company plans to enhance its product matrix by launching various games targeting different user demographics, including female-oriented ancient style and male-oriented martial arts games[7] - The integration of AI technology into game development and operations is a key focus, aiming to improve efficiency and user experience across the entire process[8] - The company plans to continue deepening its strategy of "refinement, diversification, and globalization," focusing on product innovation and technological integration[14] - The company maintains a long-term operational strategy, continuously updating content and engaging in high-frequency version iterations to enhance user experience[21] - The company is actively developing multiple small game projects, including "熹妃传H5," which launched in March 2025, and several others currently in testing, with overseas versions of "杜拉拉升职记" and "凌云诺" set to launch between March and April 2025[40] Cost Management and Efficiency - The company is optimizing its organizational structure and enhancing marketing strategies to reduce costs and improve operational efficiency[10] - Research and development expenses decreased to RMB 292,731,000 in 2024 from RMB 345,993,000 in 2023, indicating a reduction of approximately 15.4%[55] - Employee costs, including salaries and benefits, amounted to RMB 314,062 thousand in 2024, down from RMB 360,705 thousand in 2023, a reduction of about 12.9%[68] - Selling and marketing expenses for 2024 were approximately RMB 557.0 million, an increase of RMB 126.2 million or 29.3% from RMB 430.8 million in 2023, primarily due to promotional expenses for new products[101] - Administrative expenses for 2024 were approximately RMB 41.8 million, a decrease of RMB 8.5 million or 16.9% from RMB 50.3 million in 2023[104] AI and Technological Integration - The AI strategy focuses on "AI + gaming," aiming to enhance the gaming industry through technological innovation and improve player experiences by building a comprehensive AI application system covering development, publishing, operations, and management[41] - The company is developing an AI tool matrix to automate various artistic processes, significantly reducing labor costs and production cycles in art and music generation[42] - AI-driven game interaction is being restructured using deep learning technology, allowing for adaptive level design and NPC interactions based on player behavior, enhancing overall gaming experience[46] Corporate Governance and Compliance - The company has established a corporate governance framework in accordance with the corporate governance code, with a deviation noted regarding the separation of roles between the chairman and the CEO[159] - The audit committee, consisting of three independent non-executive directors, has reviewed the company's audited consolidated results for the year ending December 31, 2024, confirming compliance with applicable accounting principles and sufficient disclosures[166] - The company has ensured that all directors have complied with the standards of the securities trading code as of the year ending December 31, 2024[162] Future Outlook and Plans - The company plans to focus on market expansion and new product development in the upcoming year[55] - The company aims to enhance its competitive position through strategic acquisitions and partnerships in the upcoming fiscal year[66] - The company is committed to a global development strategy, focusing on regional depth and category breakthroughs to create culturally distinctive and globally appealing games[53] Share Incentive Plan - The company has issued a total of 2,180,850,000 shares with a par value of RMB 0.00001 as of December 31, 2024[83] - The board of directors has approved the share incentive plan to align the interests of participants with the company's long-term value creation[144] - The share incentive plan is subject to a cap where the total shares granted cannot exceed 10% of the total issued shares as of the adoption date[146] - The plan allows for the granting of shares to directors, senior and middle management, key technical personnel, and major employees who contribute to the group[141] Social Responsibility and Sustainability - The company actively integrates environmental, social, and governance issues into its management framework, promoting sustainable development in response to national carbon neutrality and energy-saving policies[48] - In 2024, the company will continue to contribute to charitable causes, focusing on education, animal rescue, and environmental protection, among others[49] - Continuous improvements in user information security are being made, with a focus on data safety and strict compliance with global regulations to ensure user privacy[51]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million for the first half of 2024, representing a Y% growth compared to the same period last year[2]. - The company reported a net profit margin of I%, reflecting improved cost management and operational efficiencies[2]. - Total revenue for the six months ended June 30, 2024, was approximately RMB 526.1 million, a decrease of 15.2% compared to the same period in 2023, but a quarter-on-quarter increase of 20.7%[127]. - The net loss for the period was approximately RMB 72.3 million, narrowing by 10.6% compared to the same period in 2023[127]. - Game revenue accounted for 99.91% of total revenue at RMB 525.6 million, down 15.23% from RMB 620.1 million in the previous year[137]. - Gross profit decreased by 12.7% to RMB 360.3 million, while gross margin increased from 66.5% to 68.5% due to a higher proportion of high-margin channels[140]. - Sales and marketing expenses increased by 4.1% to RMB 287.3 million, primarily due to high promotional costs for the new product "Floating Life Memory Candy"[141]. - R&D expenses decreased by 4.5% to RMB 152.8 million, attributed to reduced spending on sound and animation and lower share-based compensation for R&D staff[142]. - Administrative expenses decreased by 27.5% to RMB 18.1 million, mainly due to reduced consulting fees and personnel-related expenses[143]. User Engagement and Product Development - User data showed a total of Z million active users on the platform, marking an increase of A% year-over-year[2]. - New product launches are anticipated to contribute an additional D million in revenue, with a focus on enhancing user engagement[2]. - The company launched the female-oriented game "Floating Life: Memories of Linglong" on January 2, 2024, which contributed to revenue growth[127]. - The game "Lingyun Nuo" generated significant revenue with monthly earnings exceeding RMB 10 million for several months[127]. - The company is focusing on diversifying its product offerings, including ancient-style female lead games and exploring male-oriented game markets[126]. - The company aims to enhance user engagement through frequent version updates and localized content for overseas markets[129]. - The flagship product "Floating Life: Memories of Linglong" received recommendations from major platforms and entered the Top 50 iOS game sales chart in mainland China[129]. - The company launched several new games, including "墨劍江湖," which quickly entered the Top 50 of the iOS game sales chart in mainland China shortly after its release on July 19, 2024[132]. - The company is actively developing multiple small game projects, with "杜拉拉升職記" successfully entering the Top 100 of the WeChat mini-game sales chart[134]. - The company has completed the development of several games for Huawei's HarmonyOS, integrating into the Harmony ecosystem[129]. Strategic Initiatives - The company provided guidance for the next quarter, projecting revenue growth of B% and an expected user base increase of C million[2]. - Market expansion efforts are underway, targeting F new regions, which are expected to drive further growth in user acquisition[2]. - The company is exploring potential mergers and acquisitions to enhance its market position and diversify its product offerings[2]. - Strategic partnerships are being formed to leverage synergies and improve service delivery, aiming for a G% increase in operational efficiency[2]. - The company aims to implement a global development strategy, focusing on game localization and customized products for overseas markets[135]. - The company is collaborating with various brands and cultural institutions to enhance its product offerings and market presence, including partnerships for themed events and products[130]. Sustainability and Governance - The management emphasized a commitment to sustainability, with plans to reduce carbon emissions by H% over the next five years[2]. - The company has established a comprehensive environmental, social, and governance (ESG) framework to promote sustainable development and corporate social responsibility[134]. - The company is committed to user data security and privacy protection, adhering to relevant laws and regulations in all operating regions[134]. - The company has adopted the corporate governance code and has complied with its provisions, except for a specific deviation regarding the roles of the chairman and CEO[177]. - The company has established a securities trading code for directors and confirmed compliance by all directors for the six months ending June 30, 2024[178]. Shareholder Information - As of June 30, 2024, Mr. Jiang Xiaohuang holds 1,286,602,500 shares, accounting for approximately 59.00% of the total issued share capital[176]. - Major shareholder Jiang Xiaohuang holds 1,282,516,500 shares, representing 58.81% of the total shares[188]. - The total number of issued shares as of June 30, 2024, was 2,180,850,000 shares[184]. - The company has implemented a share incentive plan approved on September 14, 2020, aimed at aligning the interests of participants with the company's long-term value creation[190][191]. - The company’s controlling shareholder Jiang Xiaohuang has indirectly gifted 80,000,000 shares, approximately 3.7% of the total issued shares, as part of the share incentive plan[195]. - The board is restricted from granting more than 10% of the total issued shares under the share incentive plan as of the adoption date[196]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending June 30, 2024[182].

Financial Performance - The company's revenue for the six months ended June 30, 2024, was approximately RMB 526.1 million, a decrease of 15.2% compared to RMB 620.3 million in the same period of 2023[1]. - Gross profit for the same period was RMB 360.3 million, down 12.7% from RMB 412.6 million in 2023[1]. - The net loss for the period was approximately RMB 72.3 million, which narrowed by 10.6% compared to a loss of RMB 80.9 million in 2023[1]. - The company reported an operating loss of RMB 79,254 thousand, compared to an operating loss of RMB 14,437 thousand in the previous year, indicating a significant increase in losses[16]. - The company reported a basic loss per share of RMB (0.03) for the six months ended June 30, 2024, compared to RMB (0.04) for the same period in 2023, with weighted average shares outstanding of 2,116,111 thousand shares[35]. - The company reported a financial asset fair value change of RMB 6,728 thousand, compared to a loss of RMB 1,977 thousand in the previous year[16]. - The total assets as of June 30, 2024, were RMB 909,320 thousand, a decrease from RMB 1,047,816 thousand at the end of 2023[20]. - The net asset value decreased to RMB 1,128,161 thousand as of June 30, 2024, from RMB 1,203,562 thousand at the end of 2023, representing a decline of 6.3%[22]. - The total equity decreased by 6.3% from RMB 1,203,562 thousand at the end of 2023 to RMB 1,128,161 thousand as of June 30, 2024[22]. - The company's cost of sales decreased by 20.2% to approximately RMB 165.8 million for the six months ended June 30, 2024, down from RMB 207.7 million for the same period in 2023[51]. Revenue Sources - Revenue from self-developed games was RMB 511,246 thousand, down 14.4% from RMB 597,047 thousand in the previous year[25]. - Revenue from overseas customers was RMB 129,398 thousand, a decline of 27.1% from RMB 177,582 thousand in the same period last year[27]. - Game revenue accounted for 99.91% of total revenue at RMB 525.6 million, down 15.23% from RMB 620.1 million in the previous year[49]. - Domestic market revenue was RMB 396.2 million, representing 75.4% of total game revenue, a decrease of 10.46% from RMB 442.5 million in the prior year[50]. - Overseas market revenue was RMB 129.4 million, accounting for 24.6% of total game revenue, down 27.13% from RMB 177.6 million in the previous year[50]. Game Development and Launches - The revenue growth in the reporting period was primarily driven by the launch of the simplified Chinese version of "Floating Life: Memories of Linglong" on January 2, 2024, and the revenue increase from the mini-game "Lingyun Nuo" which generated over RMB 10 million in monthly flow for several months[3]. - The company has successfully launched the male-oriented game "Mo Jian Jiang Hu" in 2024, marking a breakthrough in exploring male gaming markets[2]. - The game "Floating Life Remembering Linglong" was launched on January 2, 2024, and entered the Top 50 of the iOS game sales chart in mainland China[7]. - The game "Ink Sword Jianghu" was launched on July 19, 2024, and quickly entered the Top 50 of the iOS game sales chart in mainland China[10]. - The game "Chaotic Cute Chef" is set for a new round of testing in August 2024, focusing on cooperative gameplay and cooking simulation[12]. - The company is actively developing various small game projects, with "Dulala's Promotion" successfully entering the Top 100 of the WeChat mini-game sales chart[13]. Strategic Initiatives - The company is committed to a long-term operational strategy, continuously iterating on versions, updating content, and conducting operational activities to extend product life cycles and enhance product vitality[6]. - The company is enhancing its R&D and innovation capabilities, focusing on cutting-edge technologies like AIGC, and exploring AI+ applications in the gaming industry to improve efficiency and reduce costs[5]. - The company plans to enhance R&D and operational capabilities, focusing on the integration of new technologies like AIGC to drive long-term growth[15]. - The company aims to optimize its personnel structure and establish a multi-tiered compensation system to improve cost control and efficiency[15]. - The company is committed to maintaining compliance with Hong Kong Financial Reporting Standards in its financial reporting practices[23]. Marketing and Localization - The company aims to provide localized game content and promotional materials to better attract and retain local players in different regions[6]. - The game has partnered with the China Academy of Art to create cultural products, including Jiangnan lanterns and new-style hairpins, enhancing its cultural engagement[7]. - "Floating Life Remembering Linglong" will collaborate with the drama "Long Moon Embers" for a promotional event on July 2, 2024[7]. - The game "Floating Life for You" has been launched in multiple regions, including North America and Southeast Asia, and is part of key cultural export projects[8]. Share Incentive Plan - As of June 30, 2024, the company purchased 5,158,000 ordinary shares under the share incentive plan, compared to none for the same period in 2023[44]. - A total of 3,437,600 restricted shares have vested as of June 30, 2024, with 6,138,800 restricted shares remaining unvested[47]. - The company established a trust to manage the restricted shares awarded under the share incentive plan, with a total of 80 million shares reserved for this purpose[45]. - The fair value of restricted shares granted to employees ranged from HKD 0.96 to HKD 1.99 per share, with varying vesting periods from 1 to 49 months[46]. - The share incentive plan allows for the granting of shares to eligible participants, with a limit of 1% of the total issued shares in any 12-month period without shareholder approval[76]. Corporate Governance - The company has adopted the corporate governance code and has complied with its provisions as of June 30, 2024, except for deviation from provision C.2.1[81]. - The company has established an audit committee, which includes independent non-executive directors, to oversee financial reporting and risk management[84]. - The audit committee reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2024[84]. - The company has established sufficient checks and balances in its governance structure[81]. - The chairman and CEO roles are currently held by the same individual, which the board believes is in the best interest of the company and its shareholders[81]. Future Outlook - Future outlook includes plans to expand into new markets, targeting a 15% increase in market share over the next fiscal year[90]. - The company is investing in new product development, with a budget allocation of $50 million for R&D in the upcoming year[88]. - A strategic acquisition is planned, aiming to enhance the company's technology capabilities and expand its product offerings[89]. - The company has set a revenue guidance of $200 million for the next quarter, representing a 20% increase compared to the previous quarter[90]. - User data indicates a 30% increase in mobile game downloads, reflecting strong market demand[88]. - The company is focusing on enhancing its digital platform, with an expected 40% increase in user retention rates due to new features[89]. - The board of directors has approved a share reward plan, which is expected to incentivize key management and improve performance[90]. - The company aims to achieve a 10% reduction in operational costs through efficiency improvements in the next fiscal year[88].

Investment Rating - The report maintains a BUY rating for FriendTimes, with a target price of HK$1.8, indicating an upside potential of 80% from the current price of HK$1.00 [13][29]. Core Insights - FriendTimes reported a significant revenue decline of 31% YoY for FY23, with an adjusted net loss of RMB 133 million, which was largely in line with expectations. The decline was attributed to existing games' grossing decline and increased sales and marketing expenses [29]. - The new game "Twist of the Fate 2" (ToF2) has shown promising performance, ranking in the top 50-70 for iOS grossing in Q1 2024. The company expects ToF2 to maintain stable grossing and is focusing on expanding to Android and overseas markets [29]. - Management is prioritizing cost discipline in FY24, with adjustments in personnel and careful development of high-R&D projects. The report anticipates that mini-games will unlock additional grossing potential [29]. Financial Summary - For FY22, revenue was RMB 1,524 million, which decreased to RMB 1,056 million in FY23, with a projected recovery to RMB 1,474 million in FY24, and further growth to RMB 1,933 million in FY25 and RMB 2,048 million in FY26 [1][23]. - Adjusted net profit is expected to recover from a loss of RMB 131.8 million in FY23 to a profit of RMB 180.3 million in FY24, increasing to RMB 256.9 million in FY25 and RMB 299.4 million in FY26 [1][23]. - The report indicates a significant drop in diluted EPS from 1.90 cents in FY22 to a loss of 6.10 cents in FY23, with a forecasted recovery to 8.27 cents in FY24 and further increases in subsequent years [1][23]. Valuation Metrics - The P/E ratio is projected to decrease from 50.7 in FY22 to 11.1 in FY24, indicating a more favorable valuation as earnings recover [1][25]. - The gross margin is expected to stabilize around 68% from FY24 onwards, while the operating margin is projected to improve gradually [30][25]. - The report highlights a current ratio of 4.1 in FY23, indicating strong liquidity, which is expected to improve to 5.4 in FY24 [25].

智通财经APP获悉，友谊时光(06820)涨近7%，截止发稿涨6.9%，报1.24港元，成交额49.12万港元。 消息面上，1月2日，由友谊时光自研的女性向新游《浮生忆玲珑》正式上线，登顶华为、OPPO、 TapTap等多个平台热门榜，在iOS渠道上拿下免费榜第3、角色扮演榜第1。招银国际认为，公司新作 《浮生忆玲珑》上线以来反映良好，未来有望保持上升势头。新产品的推出和海外扩张将带来进一步上 行空间，同时公司还维持了可观的股东回报，该行建议投资者关注其2024财年的增长势头。 此外，1月26日，国家新闻出版署官网发布2024年1月国产网络游戏审批信息，总计115款游戏获批，单 批次版号发布数量创2022年以来新高。此外《幻兽帕鲁》上线一周热度持续，销量在6天内突破800万 份，而同时在线人数峰值于24日超过200万人。国泰君安认为“类宝可梦”的IP热度和开放世界的自由玩 法，是该游戏持续具备话题度和破圈能力的核心，而各项技术的进步也让内容迸发有了更低的门槛。游 戏版号发放稳中有升，有利于供给预期的稳定和公司相关产品线规划。 ...

Financial Data and Key Metrics Changes - In the first half of 2023, the company faced significant challenges, including a tax impact of approximately 60 million, primarily due to prior losses in some subsidiaries that may not be recoverable [1][2] - The overall mobile game industry saw a year-on-year decline of 3.41%, with actual sales revenue slightly over 100 billion [1][3] - Sales and R&D expenses were aligned with revenue, with a notable decrease in sales expenses during the first half of the year [1][2] Business Line Data and Key Metrics Changes - The company reported a stable performance from existing products, with top sellers including "Fusheng Wenqing Ge" and "Lin Nuo" maintaining positions in the top 100 sales charts [1][3] - The new product "Fusheng Yiling Long" is progressing well, with a month-long paid testing phase yielding satisfactory data [1][2] Market Data and Key Metrics Changes - The overall market environment has been challenging, with a general decline in consumer spending and changes in traffic patterns affecting revenue [1][3] - The company is exploring the mini-game segment and casual gaming, recognizing the potential for growth in these areas [1][2] Company Strategy and Development Direction - The company aims to enhance project management and cost control, with a focus on product innovation over the next three years [1][2] - There is a commitment to exploring AI applications in game development, which is expected to improve efficiency and reduce costs [1][3] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2023 is a challenging year but expressed confidence in a positive outlook for the second half, driven by stable performance from existing products and careful management of new launches [1][2] - The company is optimistic about the potential for a turnaround in 2024, contingent on the success of new product launches and market conditions [1][3] Other Important Information - The company is actively pursuing overseas market opportunities, with a focus on customized products for international players [1][2] - There is an ongoing effort to optimize internal processes and enhance the quality of game offerings [1][3] Q&A Session Summary Question: What are the characteristics of "Fusheng Yiling Long" compared to similar products in the market? - The product features significant innovations in gameplay and exploration, with positive player feedback on its unique mechanics and artistic design [1][2] Question: What is the company's strategy regarding mini-games and casual gaming? - The company is monitoring the mini-game segment and has ongoing research and development efforts in this area, aiming to capitalize on emerging trends [1][3] Question: Can the company share any results from AI applications in game development? - AI has been integrated into various projects, leading to reduced development times and cost savings, with ongoing testing of new functionalities [1][2] Question: What is the outlook for the company's performance in 2023? - Management expects a positive trend in the second half of the year, with stable performance from existing products and careful management of new launches [1][3] Question: How is the company addressing the challenges faced in recent years? - The company is enhancing project management standards, adapting to market changes, and focusing on innovation in both gameplay and technology [1][2]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 620,342 thousand, a decrease of 24.9% compared to RMB 826,057 thousand in 2022[2] - Gross profit for the same period was RMB 412,614 thousand, down 28.0% from RMB 572,745 thousand in 2022[2] - The company reported a loss of RMB 80,944 thousand for the period, which is a 10.9% increase from a loss of RMB 72,962 thousand in 2022[2] - Adjusted loss for the period was RMB 77,911 thousand, reflecting a 33.3% increase from RMB 58,461 thousand in the previous year[2] - The group reported a total revenue of approximately RMB 620.3 million, a decrease of 24.9% compared to the same period in 2022[172] - The net loss for the period was approximately RMB 80.9 million, compared to a net loss of RMB 73.0 million in the same period of 2022[172] - Adjusted net loss for the period was approximately RMB 77.9 million, compared to an adjusted net loss of RMB 58.5 million in the same period of 2022[172] Revenue Sources - Domestic market revenue was RMB 442.5 million, accounting for 71.4% of total revenue, while overseas market revenue was RMB 177.6 million, accounting for 28.6%[69] - The group's revenue from gaming activities decreased by 24.9% year-on-year, primarily due to the natural decline in income from older products[84] Cost Management and Operational Strategy - The decline in revenue was primarily due to the normal decline in earnings from older games as they reached the end of their life cycle[4] - The company plans to enhance cost management and implement measures for personnel optimization and project management to stabilize operations[10] - The group experienced a net cash outflow from operating activities of RMB 42.997 million for the six months ended June 30, 2023, compared to RMB 30.938 million for the same period in 2022[74] Game Development and User Engagement - New game features and seasonal events were introduced to improve user experience and engagement, such as the new pet companion "Moonlight Rabbit" and elegant costumes inspired by traditional Chinese culture[6] - The company aims to strengthen the exploration of new user acquisition channels while providing precise services to retain existing users[10] - The group maintains a high frequency of updates and content optimization for its games, ensuring at least one update per month for key titles[168] - The group actively invests in R&D, focusing on AIGC technology to enhance game interaction and marketing materials, aiming to reduce costs and improve efficiency[165] Share Incentive Plan - The group granted a total of 2,152,000 restricted shares to 5 eligible employees under the share incentive plan, with a fair value of HKD 0.96 per share[82] - The share incentive plan was approved by the board on September 14, 2020, to enhance the company's competitiveness[107] - The share reward plan allows for the issuance of a total of 16,000,000 reward shares to employees, effective from January 5, 2022[153] - The share rewards granted to employees are free of charge, with a vesting period ranging from 1 month to 37 months[115] Corporate Governance and Compliance - The financial report was prepared in accordance with the Hong Kong Financial Reporting Standards and is unaudited, with a review conducted by an independent auditor[24] - The company has established an audit committee in compliance with Listing Rule 3.21 and Corporate Governance Code[139] - The board believes that the current dual role of the chairman and CEO enhances policy continuity and operational efficiency[102] Future Outlook and Strategic Focus - The company plans to increase investment in game development, publishing, and operational talent, focusing on new technologies such as AIGC to enhance global competitiveness[200] - The company aims to create a more diverse and innovative product portfolio by launching new games of different styles while ensuring the long-term operation of existing games[200] - The company aims to expand its presence in overseas markets while maintaining a leading position in the domestic female market[164] Social Responsibility and Sustainability - The company actively integrates environmental, social, and governance issues into its management framework, promoting sustainable development practices[44] - The company is committed to corporate social responsibility and has implemented policies to enhance employee awareness of environmental issues[44]

Financial Performance - The company reported a revenue of HKD 1.2 billion for the first half of 2022, representing a year-over-year increase of 15%[6] - Total revenue for the six months ended June 30, 2022, was approximately RMB 826.1 million, a decrease of 0.8% compared to RMB 833.0 million in the same period of 2021[24] - The company's revenue for the six months ended June 30, 2022, was approximately RMB 826.1 million, a decrease of about RMB 6.9 million or 0.8% compared to RMB 833.0 million in the same period of 2021[38] - Game revenue accounted for 99.9% of total revenue, with RMB 825.6 million, down 0.9% from RMB 833.0 million in the previous year[38] - Revenue from the mainland China market was RMB 616.5 million, representing 74.7% of total game revenue, an increase of 3.2% from RMB 597.6 million in 2021[39] - The overseas market generated RMB 209.1 million, accounting for 25.3% of game revenue, a decrease of 11.2% from RMB 235.4 million in the previous year[39] - Revenue from self-developed games was RMB 793,968,000, compared to RMB 806,899,000 in the previous year, indicating a decline of about 1.6%[142] - The company reported a net loss of approximately RMB 73.0 million for the six months ended June 30, 2022, a decrease of RMB 203.3 million compared to a profit of RMB 130.3 million in the same period of 2021[47] - The company reported a net loss of RMB 72,962 thousand for the six months ended June 30, 2022, compared to a profit of RMB 130,291 thousand in 2021[118] Research and Development - The company is investing HKD 200 million in R&D for new technologies aimed at enhancing user experience[7] - The company continues to invest heavily in R&D, focusing on core talent, tool iteration, and new technology exploration[28] - R&D expenses decreased by 5.1% to approximately RMB 169.1 million compared to RMB 178.2 million in the previous year[43] - Research and development expenses amounted to RMB 169,112 thousand, slightly down from RMB 178,181 thousand in the previous year[117] Market Expansion and Strategy - User base grew to 5 million active users, an increase of 20% compared to the previous year[7] - The company expects revenue growth to continue at a rate of 10-15% for the next fiscal year[7] - New product launches are anticipated to contribute an additional HKD 300 million in revenue by the end of 2022[7] - Market expansion plans include entering three new countries by the end of 2023, targeting a 25% increase in international sales[7] - The company plans to implement a new marketing strategy with a budget of HKD 100 million to increase brand awareness[7] Financial Position - Total assets as of June 30, 2022, were RMB 1,471.2 million, down from RMB 1,806.7 million in 2021[25] - Total liabilities were RMB 85.7 million, compared to RMB 60.3 million in the previous year[25] - The group had a current ratio of approximately 0.06 as of June 30, 2022, down from 0.09 at the end of 2021, indicating a decrease in liquidity[49] - The debt-to-asset ratio was 0.04% as of June 30, 2022, compared to 0.07% at the end of 2021, with no bank borrowings reported[56] - As of June 30, 2022, the group had cash and cash equivalents of approximately RMB 383.2 million, down from RMB 774.2 million at the end of 2021[49] Shareholder Returns - The board has approved a dividend payout of HKD 0.05 per share, reflecting a commitment to returning value to shareholders[6] - The company declared dividends amounting to RMB 43,067 thousand during the period[131] - The company paid dividends amounting to RMB 223,808,000, slightly higher than RMB 214,700,000 in the previous year[133] - The company has not declared any interim dividends for the six months ending June 30, 2022[76] Employee and Management Information - The group employed 1,208 staff as of June 30, 2022, a decrease from 1,362 employees at the end of 2021, reflecting a reduction in workforce[58] - Total compensation for key management personnel amounted to RMB 4,513,000 for the six months ended June 30, 2022, compared to RMB 9,179,000 for the same period in 2021, reflecting a decrease of approximately 50.8%[188] - The company has established a share incentive plan to reward and retain key employees, with a total of 80,000,000 shares allocated for this purpose[175] Acquisitions and Investments - The company has completed a strategic acquisition of a local tech firm for HKD 500 million to enhance its product offerings[7] - The company raised approximately RMB 434.0 million from its initial public offering, with a remaining balance of RMB 19.1 million as of June 30, 2022[72] - The company plans to utilize the remaining IPO proceeds according to the disclosed purposes and proportions in the prospectus[72] Governance and Compliance - The company has complied with the corporate governance code, except for a deviation regarding the separation of roles between the chairman and CEO[73][74] - The company has established sufficient power balance and appropriate safeguards within its governance structure[74] - The board has established an audit committee, which reviewed the unaudited interim financial statements for the six months ending June 30, 2022[77]

Financial Performance - The company reported a revenue of HKD 1.2 billion for the fiscal year 2021, representing a year-over-year increase of 15%[1] - Total revenue for 2021 was RMB 1,616,137, a decrease of 26% compared to RMB 2,182,257 in 2020[28] - Gross profit for 2021 was RMB 1,089,428, down from RMB 1,468,345 in 2020, reflecting a gross margin of approximately 67.4%[28] - Adjusted net profit for 2021 was RMB 308,956, compared to RMB 503,519 in 2020, indicating a decline of 38.6%[28] - The annual net profit was approximately RMB 275.5 million, representing a decrease of about 45.3% year-on-year[34] - The total revenue for the year ended December 31, 2021, was approximately RMB 1,616.1 million, a decrease of about 25.9% compared to the previous year[34] - The decline in revenue and net profit was primarily due to the absence of major new product launches and the normal decline in revenue from older products[34] User Engagement and Market Expansion - User data showed an increase in active users to 5 million, up 20% from the previous year[1] - New product launches included a mobile application that increased user engagement by 30%[1] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[1] - The company aims to expand its global strategy and enhance its position in the mobile gaming market, particularly in the female-oriented segment[30] - The company is focusing on the female-oriented gaming market, with ongoing development of new game types to meet diverse market demands[33] Research and Development - Research and development expenses increased by 12% to support new technology initiatives[1] - Research and development expenses rose by 37.9% to approximately RMB 364.9 million, primarily due to increased employee costs for new game development and upgrades[48] - The company aims to enhance its game development capabilities and user experience through increased R&D investments and talent training[34] Strategic Initiatives - The company completed an acquisition of a local tech firm for HKD 200 million to enhance its service offerings[1] - A new strategic partnership was formed with a leading telecom provider to improve service delivery[1] - The company plans to launch new games with different styles while ensuring the long-term operation of existing games to address the competitive industry environment[41] Corporate Governance - The board consists of 7 members, including 4 executive directors and 3 independent non-executive directors[91] - The company has adopted a diversity policy for its board, considering factors such as age, gender, cultural background, and professional experience[95] - The company has established a procedure for the appointment of new directors, ensuring a thorough evaluation process[93] - The company has established three committees: audit, remuneration, and nomination, with a majority of independent non-executive directors in each[105] Shareholder Engagement and Dividends - The company proposed a final dividend of HKD 0.12 per share for the year ending December 31, 2021, which is the same as the previous year[134] - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 306.8 million, with about RMB 214.0 million intended for the final dividend[138] - The company encourages shareholder participation in annual general meetings, providing opportunities for direct communication with the board[120] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to integrating environmental, social, and governance (ESG) issues into its overall corporate management framework[191] - The company aims to minimize potential negative environmental and social impacts from its operations[191] - The company has established environmental, social, and governance (ESG) goals to enhance its sustainable development efforts and stakeholder engagement[192] - The company donated RMB 1 million to support emergency rescue and post-disaster reconstruction efforts in Henan province due to extreme weather in July 2021[192] Employee Relations and Management - The company maintains good relationships with employees, customers, and suppliers, with no significant disputes reported during the year[131] - The management team consists of experienced professionals with backgrounds in the gaming industry, including the CEO who has nearly 17 years of experience[75][76][78] - The company has granted a total of 16,000,000 shares as part of its employee incentive plan, effective from January 5, 2022[74] Risk Management - The company has established a risk management and internal control management system, with regular risk assessments conducted at least annually[116] - The board has reviewed the effectiveness of the company's risk management and internal control systems as of December 31, 2021, covering key controls including financial, operational, and compliance controls[117]