Core Insights - The company reported a revenue of 5.58 billion yuan for the fiscal year 2024, a decrease of 14.3% year-on-year [2] - The net profit for 2024 was 44 million yuan, down 83.9% from 273 million yuan in 2023, with a net loss attributable to the parent company of 3.62 million yuan [2] - The decline in revenue is attributed to decreased game income under the cooperative operation model, underperformance of new game launches, and reduced income from consumer goods [2] Revenue Breakdown - The company achieved overseas revenue of 623 million yuan in 2024, marking a year-on-year increase of 44.9%, accounting for 11.2% of total revenue [3] - The self-operated game products generated 4.12 billion yuan in revenue, a decrease of 3.4%, while revenue from cooperative operations fell by 31.6% to 1.33 billion yuan [6] Cost Management - Research and development costs decreased by 25.4% to 128 million yuan in 2024, primarily due to a reduction in overall compensation related to R&D personnel [4] - Sales and distribution expenses remained high at 3.517 billion yuan but decreased by 9.4% from 3.88 billion yuan in 2023 [5] - Administrative expenses were recorded at 192 million yuan, down 27.6% from 265 million yuan in 2023 [5] Strategic Initiatives - The company is focusing on product matrix innovation, technology-driven strategies, and global expansion [6] - It has entered into a partnership to develop AI game business, aiming to optimize R&D processes and reduce costs [4] - The company is also expanding its portfolio in the mini-game sector, with successful launches such as "Little Soldier Battle" [7] Consumer Goods Performance - Revenue from the consumer goods sector fell by 52.2% to 102 million yuan in 2024, primarily due to a strategic focus on core gaming operations and intense market competition [7]

Financial Performance - The company's total revenue for the reporting period was RMB 5,580.1 million, a decrease of 14.3% compared to RMB 6,514.6 million in 2023[10]. - The net profit for the year was RMB 44.0 million, down 83.9% from RMB 273.3 million in 2023, with a net loss of RMB 385.0 million recorded for the six months ending June 30, 2024[10]. - Revenue from overseas operations reached RMB 623.4 million, representing a year-on-year increase of 44.9% from RMB 430.3 million in 2023, accounting for 11.2% of total revenue[10]. - The revenue from self-operated game marketing and operations for the year ended December 31, 2024, was RMB 4,118.8 million, a decrease of 3.4% compared to RMB 4,264.5 million in 2023[28]. - The revenue from joint-operated game marketing and operations for 2024 was RMB 1,329.8 million, down 31.6% from RMB 1,944.8 million in 2023[28]. - The total gross profit for 2024 was RMB 4,024.3 million, a decrease of 12.0% from RMB 4,573.3 million in 2023[31]. - The gross margin for 2024 was 72.1%, compared to 70.2% in 2023[32]. - Other income and gains for 2024 were RMB 162.9 million, a decrease of 65.2% from RMB 468.1 million in 2023[33]. - The company reported a total comprehensive income of RMB 42,765 thousand for 2024, compared to RMB 212,339 thousand in 2023, reflecting a decrease of 80.0%[71]. - The group’s profit before tax for 2024 was RMB (3,624) thousand, a significant decrease from RMB 235,487 thousand in 2023, indicating a decline in profitability[99]. - The total income tax expense for 2024 was RMB 54,396 thousand, down 61% from RMB 140,102 thousand in 2023, primarily due to lower taxable profits[97]. Market Trends - The domestic gaming market in China is projected to generate actual sales revenue of RMB 3,257.8 million in 2024, reflecting a year-on-year growth of 7.53%[7]. - The global gaming market is expected to reach RMB 12,163.4 million in 2024, with a year-on-year growth of 3.31%[5]. - The company aims to expand its overseas market presence as part of its global strategy[10]. - The company plans to deepen its global strategy by introducing quality game products to Southeast Asia, Europe, and the Middle East markets[23]. Product Development - The company is focusing on a diversified and premium product matrix strategy, which includes classic IP games and innovative new IP games[11]. - The game "Douluo Dalu: Shrek Academy" launched in January 2024 achieved top rankings on both the Apple App Store and TapTap[16]. - The classic IP games, such as "Legend" and "Miracle," continue to maintain stable user activity and are supported by ongoing content updates[12]. - The company launched the mobile network SLG "Beast Lord: New World" in June 2024, which topped multiple charts, including the iOS free list[17]. - The classic IP "Miracle MU: Infinite Golden Egg" gained 800,000 new users in Vietnam within the first month of release, achieving top rankings in both Google Play and App Store[21]. - The company has a pipeline of 17 game products ready for release, indicating a strong future product lineup[21]. - The AI-driven platforms "Luoshu" and "Hetu" have accumulated a machine learning training set of over 100 billion parameters, enhancing user acquisition and operational efficiency[20]. - The company has successfully launched over 30 multilingual games in various international markets, including Southeast Asia and Europe, demonstrating significant global expansion[21]. - The company has received approval for multiple high-quality game titles, strengthening its game portfolio for future growth[24]. Financial Position - The cash and cash equivalents as of December 31, 2024, were RMB 515.0 million, an increase from RMB 486.9 million in 2023[47]. - The current ratio as of December 31, 2024, was 1.28, up from 0.84 in 2023[50]. - The goodwill as of December 31, 2024, was zero, down from RMB 27.9 million in 2023, primarily due to poor performance in the consumer goods segment[43]. - Total capital expenditure for the year ended December 31, 2024, was approximately RMB 50.7 million, compared to RMB 23.0 million for the same period in 2023, indicating a significant increase[53]. - The total employee compensation cost for 2024 was RMB 366.5 million, a decrease of 26.9% from RMB 501.7 million in 2023[56]. - As of December 31, 2024, the group had pledged fixed deposits of RMB 2,176.3 million and fixed assets valued at RMB 56.6 million as collateral for bank loans and notes payable[58]. - The group had no significant contingent liabilities or unresolved major lawsuits as of December 31, 2024[54]. - The company had 912 employees as of December 31, 2024, down from 1,305 employees in 2023[56]. - The group’s trade payables totaled RMB 475,530 thousand in 2024, a slight increase from RMB 466,069 thousand in 2023, indicating stable supplier relationships[104]. - The fair value of listed equity investments increased to RMB 430,534 thousand in 2024 from RMB 412,800 thousand in 2023, showing a positive trend in market valuation[103]. Shareholder Matters - The company did not recommend a final dividend for the year ended December 31, 2024, consistent with no dividend in 2023[64]. - The group declared a special dividend of RMB 50,000 thousand on August 15, 2023, fully paid in cash, with no final dividend recommended for the year ending December 31, 2024[98]. - The company has scheduled its annual general meeting for June 19, 2025, to discuss shareholder matters[68]. - The company will suspend share transfer registration from June 16 to June 19, 2025, to determine shareholder eligibility for the upcoming annual general meeting[69]. Operational Efficiency - The company has implemented mechanisms to manage underage consumer protection in response to new regulatory requirements[8]. - The company has not encountered any significant labor disputes or difficulties in recruiting employees during the reporting period[57]. - The group reported a total of RMB 3,335,096 thousand in promotional expenses for 2024, down from RMB 3,685,013 thousand in 2023, showing a 9.5% reduction in marketing expenditures[6]. - Trade receivables at the end of 2024 amounted to RMB 237,194 thousand, a decrease of 23.6% from RMB 310,696 thousand in 2023, indicating improved collection efficiency[101]. - The company has no supplier financing arrangements, thus the recent accounting standards revisions had no impact on its financial statements[80]. - The company has clarified that liabilities classification is unaffected by the potential exercise of repayment rights[81].

Core Viewpoint - The company, Zhongxu Future (9890.HK), has issued a profit warning, projecting a net profit between 10 million and 50 million yuan for 2024, a significant decrease from 273 million yuan in the previous year, but is expected to reverse its losses by the end of 2024 [1][2]. Group 1: Financial Performance and Forecast - In the first half of 2024, Zhongxu Future recorded a net loss of 385 million yuan, primarily due to increased operating expenses and asset impairment provisions, which are expected to impact the overall performance for the year [1][2]. - Despite the challenges, the company anticipates a strong recovery in the second half of 2024, with operational improvements expected to enhance profitability beyond last year's levels [2]. Group 2: Strategic Focus and Market Environment - The company is focusing on its core gaming business, benefiting from a strategic transformation that aligns with the growth of the gaming market, which reached a record sales revenue of 325.78 billion yuan in 2024 [3]. - The gaming user base in China has also reached 674 million, indicating a robust market environment that supports the potential for revenue growth from new game launches [3]. Group 3: Product Development and Growth Potential - Zhongxu Future is actively developing and launching new games, with over 20 games in reserve and more than 10 IP resources, which are expected to contribute to revenue and maintain market interest [4]. - The company’s long-term growth is supported by its deep experience in game operations, allowing it to maximize the potential of new titles once they enter the revenue recovery phase [4]. Group 4: Globalization and Technology Integration - The company is expanding its global footprint, with successful game launches in overseas markets, such as Vietnam and Thailand, where its titles have topped app store charts [6]. - Zhongxu Future is integrating advanced technologies like VR/AR and AI into its operations, enhancing game quality and operational efficiency, which is expected to lower costs and increase profitability [7].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 3,225,776 thousand, a decrease of 5.1% compared to RMB 3,400,091 thousand for the same period in 2023[9] - Gross profit for the same period was RMB 2,364,169 thousand, an increase of 3.0% from RMB 2,294,078 thousand in 2023[9] - The company reported a loss before tax of RMB 416,350 thousand, compared to a profit of RMB 442,654 thousand in the previous year[9] - The net loss for the six months ended June 30, 2024, was RMB 385.0 million, compared to a net profit of RMB 300.3 million for the same period in 2023[36] - Basic and diluted loss per share for the period was RMB (0.74), compared to earnings of RMB 0.55 per share in the previous year[76] - Total operating expenses increased to RMB 2,288,845 thousand from RMB 1,953,214 thousand, reflecting a rise of 17.2%[76] - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2024[72] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 6,245,898 thousand, down from RMB 7,268,210 thousand as of December 31, 2023[10] - Non-current assets decreased to RMB 2,535,951 thousand from RMB 3,204,232 thousand at the end of 2023[10] - Current liabilities decreased to RMB 4,196,424 thousand from RMB 4,836,197 thousand at the end of 2023[10] - The net asset value as of June 30, 2024, was RMB 1,902,261,000, down from RMB 2,275,785,000, a decline of around 16.5%[83] - Trade receivables as of June 30, 2024, totaled RMB 286,485,000, a decrease from RMB 310,696,000 as of December 31, 2023[109] - The company’s notes payable as of June 30, 2024, were RMB 2,334,580,000, down from RMB 2,806,551,000 as of December 31, 2023[114] Revenue Streams - Revenue from self-operated games reached RMB 2,481.6 million, an increase of 17.1% from RMB 2,118.9 million in the same period of 2023, driven by new game launches[22] - Revenue from co-operated games decreased by 39.5% to RMB 668.5 million, primarily due to the lifecycle stage of existing games[22] - Revenue from other marketing operations decreased by 60.9% to RMB 19.3 million for the six months ended June 30, 2024, compared to RMB 49.3 million for the same period in 2023[23] - Revenue from consumer products dropped by 55.5% to RMB 56.4 million for the six months ended June 30, 2024, down from RMB 126.8 million in the prior year[24] - Revenue from mainland China was RMB 2,938,751, down 10.1% from RMB 3,268,089 in the previous year[100] - Revenue from Hong Kong increased significantly to RMB 284,634, compared to RMB 132,002 in the prior year, representing a growth of 115.5%[96] Operational Highlights - The company plans to launch new games including "斗罗大陆：誅邪傳說" and "虎衛戰神" in the second half of 2024[6] - The company has successfully launched over 30 multilingual games in various overseas markets, with dozens more in preparation[6] - The company launched 29 new games in the first half of 2024, expanding its portfolio to over 380 games[12] - The company signed strategic cooperation agreements with major cloud service providers to enhance game development and operational efficiency[15] - The company is actively pursuing a global strategy, having published and operated over 30 multilingual games in international markets by June 30, 2024[17] Research and Development - A new AI-focused subsidiary has been established to enhance the application of AI technology in the gaming industry[6] - The company emphasizes a strategy of "self-research + cooperation + investment" for its R&D efforts moving forward[6] - The average revenue per paying user (ARPPU) for all games was RMB 476.8[12] - The company is developing new games, including "Codename 20" and "Codename HB," to diversify its product matrix[17] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 541.0 million as of June 30, 2024, from RMB 486.9 million as of December 31, 2023[41] - The company reported a net cash flow from operating activities of RMB (864,068,000) for the six months ended June 30, 2024, compared to RMB (408,833,000) for the same period in 2023, indicating a significant increase in cash outflow[86] - The net cash flow from investing activities was RMB 1,166,123,000 for the six months ended June 30, 2024, compared to RMB 1,009,393,000 in the previous year, showing an increase in cash inflow from investments[89] Corporate Governance - The company has maintained high corporate governance standards, with compliance to the corporate governance code, except for the separation of the roles of Chairman and CEO during the reporting period[69] - The company plans to separate the roles of Chairman and CEO, appointing Ms. Liang as CEO effective August 30, 2024[70] - The company has adopted a standard code for securities trading by directors, confirming compliance with the code by all directors as of June 30, 2024[68] Employee and Management Information - The group employed 1,247 employees as of June 30, 2024, down from 1,305 employees on December 31, 2023[48] - The total remuneration for key management personnel for the six months ended June 30, 2024, was RMB 20,572,000, a decrease from RMB 25,865,000 in the same period of 2023[122]

Game Performance and User Metrics - For the six months ended June 30, 2024, the company successfully launched 29 new games, with a total of over 380 games operated, achieving 603.2 million registered users[5]. - The average monthly active users (MAU) reached 10.2 million, while the average monthly paying users (MPU) stood at 1.1 million, resulting in an average revenue per paying user (ARPPU) of RMB 476.8[6]. - Revenue from self-operated game products reached RMB 2,481.6 million, an increase of 17.1% from RMB 2,118.9 million in the same period last year, driven by new game launches[21]. - Revenue from co-operated game products decreased by 39.5% to RMB 668.5 million, down from RMB 1,105.1 million, primarily due to existing games entering the later stages of their life cycle[21]. - Revenue from mainland China accounted for RMB 2,938,751,000, down 10.1% from RMB 3,268,089,000 in 2023[84]. Financial Performance - The company's revenue for the six months ended June 30, 2024, was RMB 3,225.8 million, a decrease of 5.1% from RMB 3,400.1 million in the same period of 2023[18]. - The company recorded a net loss of RMB 385.0 million for the six months ended June 30, 2024, compared to a net profit of RMB 300.3 million in the same period last year[38]. - Gross profit increased by 3.1% to RMB 2,364.2 million, with a gross margin of 73.3%, up 5.8 percentage points from 67.5% in the previous year[26]. - The total tax expense for the period was a negative RMB 31,397,000, significantly down from RMB 142,393,000 in the previous year[96]. - The group reported a pre-tax loss of RMB 382,924,000 for the six months ended June 30, 2024, compared to a profit of RMB 275,654,000 for the same period in 2023[101]. Cost and Expenses - Sales cost decreased by 22.1% to RMB 861.6 million from RMB 1,106.0 million, mainly due to reduced commissions from third-party distribution channels[25]. - The total salary cost incurred for the six months ended June 30, 2024, was RMB 218.9 million, a decrease of 16.0% compared to RMB 260.7 million in the same period of 2023[54]. - Promotion expenses increased to RMB 2,190,825,000, up 13.3% from RMB 1,851,249,000 in the previous year[6]. - The cost of sales for products decreased to RMB 38,208,000 from RMB 76,470,000 year-on-year, indicating a reduction of 50%[6]. Strategic Initiatives - The company has signed strategic cooperation agreements with major cloud service providers, enhancing its capabilities in game development and operations[9]. - The company is actively pursuing a global strategy, having published and operated over 30 multilingual games in various international markets[12]. - The company launched the AI-powered "X" smart marketing platform to enhance advertising precision and meet marketing needs in the gaming sector[13]. - The company has established a deep partnership with Huawei to explore opportunities within the HarmonyOS ecosystem for game development[11]. - The company plans to continue developing a diversified product matrix and is actively preparing multiple new games across different genres[15]. Financial Position and Liquidity - As of June 30, 2024, the group's cash and cash equivalents amounted to RMB 541.0 million, an increase from RMB 486.9 million as of December 31, 2023[44]. - Interest-bearing bank and other borrowings were RMB 49.8 million as of June 30, 2024, down from RMB 213.7 million as of December 31, 2023[45]. - The debt-to-equity ratio as of June 30, 2024, was 0.13, a decrease from 0.18 as of December 31, 2023[46]. - The current ratio as of June 30, 2024, was 0.88, compared to 0.84 as of December 31, 2023[47]. - The company believes it has sufficient cash flow to continue operations and meet its obligations in the foreseeable future[84]. Shareholder and Corporate Governance - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[64]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[66]. - The company has adopted a pre-IPO share option plan to incentivize eligible participants, including employees[56]. - The group has no specific plans for significant investments or acquisitions as of June 30, 2024[50]. - The company has not engaged in any buybacks or sales of its listed securities during the reporting period[63].

Financial Performance - In 2023, the company reported a revenue of RMB 6,514,585, a decrease of 26.0% compared to RMB 8,817,221 in 2022[5] - Gross profit for 2023 was RMB 4,573,318, down 28.7% from RMB 6,409,690 in the previous year[5] - The company achieved a profit before tax of RMB 413,391, representing a decline of 31.3% from RMB 601,575 in 2022[5] - The net profit for the year was RMB 273,289, a decrease of 44.5% compared to RMB 491,522 in 2022[5] - Revenue from the top five games decreased by 45.4% to RMB 3,142.7 million in 2023, accounting for 48.2% of total revenue compared to 65.2% in 2022[18] - Revenue from self-operated game products decreased by 31.0% to RMB 4,264.5 million in 2023, down from RMB 6,179.6 million in 2022[35] - Revenue from co-operated game products decreased by 32.5% to RMB 3,747.7 million in 2023, compared to RMB 5,563.8 million in 2022[34] - The company's gross profit decreased by 28.7% to RMB 4,573.3 million in 2023 from RMB 6,409.7 million in 2022[39] - The gross margin for 2023 was 70.2%, down from 72.7% in 2022, while the gross margin for self-operated game products was 92.3%[40] - Adjusted profit (non-HKFRS measure) decreased slightly from RMB 560.1 million in 2022 to RMB 542.0 million in 2023[54] Assets and Liabilities - The total non-current assets as of December 31, 2023, were RMB 3,204,232, down from RMB 4,181,409 in 2022[6] - Current assets totaled RMB 4,063,978, a decrease of 27.6% from RMB 5,617,497 in the previous year[6] - Trade receivables decreased by 27.2% from RMB 426.8 million as of December 31, 2022, to RMB 310.7 million as of December 31, 2023, consistent with declining revenues[57] - Trade payables decreased by 11.0% from RMB 523.6 million as of December 31, 2022, to RMB 466.1 million as of December 31, 2023, due to a decline in total revenue from game products[58] - Notes payable decreased by 50.2% from RMB 5,640.2 million as of December 31, 2022, to RMB 2,806.6 million as of December 31, 2023, primarily due to declining revenues[60] - Cash and cash equivalents amounted to RMB 486.9 million as of December 31, 2023, with no significant external financing plans currently in place[62] - Interest-bearing bank and other borrowings totaled RMB 213.7 million as of December 31, 2023, with interest rates ranging from 1.2% to 2.8%[63] - The company's debt-to-equity ratio was 0.45 and 0.18 as of December 31, 2022, and 2023, respectively[64] - The current ratio remained below 1 throughout the reporting period due to a significant portion of pledged deposits being classified as non-current assets[67] Business Strategy and Future Plans - The company plans to focus on deep operations, global market expansion, and the development of new IP games in 2024[9] - The launch of the "X" smart marketing platform is scheduled for 2024, aimed at enhancing advertising precision and operational efficiency[10] - The company aims to expand into Southeast Asia and Japan, in addition to continuing its efforts in the European and American markets[9] - The company plans to expand its game portfolio with new types including MMORPGs, strategy games, casual games, tower defense games, and collectible card games in 2024[18] - The company plans to enhance its technology and innovation in brand and content development while expanding into international markets, including Southeast Asia and Japan[31] User Engagement and Game Development - In 2023, the company launched 69 new games, operating over 350 games with a total of 489.3 million registered users by December 31, 2023[14] - The average monthly active users (MAU) for the company's games reached 8.7 million in 2023, while the average revenue per paying user (ARPPU) was RMB 469.2[14][22] - The average monthly paying users (MPU) decreased to 1,102.8 thousand in 2023 from 1,770.4 thousand in 2022[17] - The cumulative registered user count increased from 356.1 million in 2022 to 489.3 million in 2023[17] - The gross margin for cooperative operation games increased from 16.3% in 2022 to 24.5% in 2023[14] Expenses and Cost Management - Sales and distribution expenses decreased by 31.0% to RMB 3,880.2 million in 2023 from RMB 5,622.4 million in 2022[42] - R&D expenses increased by 8.6% from RMB 157.7 million in 2022 to RMB 171.2 million in 2023, primarily due to increased equity incentive costs related to the pre-IPO stock option plan adopted in November 2022[44] - Other expenses surged significantly from RMB 8.3 million in 2022 to RMB 208.3 million in 2023, mainly due to increased fair value losses on financial assets and goodwill impairment related to a subsidiary acquired in 2021[46] - Financing costs decreased by 12.6% from RMB 107.9 million in 2022 to RMB 94.3 million in 2023, attributed to reduced payments to business partners due to declining revenues[47] Governance and Corporate Structure - The board consists of two executive directors and three independent non-executive directors as of March 30, 2023[97] - The company has appointed three independent non-executive directors, enhancing its governance structure[96] - The board report includes a fair review of the company's business and future development prospects, as required by the Companies Ordinance[101] - The company has established a compensation committee to determine and recommend the remuneration policy for directors and senior management[184] Social Responsibility and Community Engagement - The company emphasizes its commitment to social responsibility and community development initiatives[12] - The group is committed to sustainable development and has not incurred any fines or penalties for violations of health, safety, or environmental regulations during the reporting period[108] - The group made charitable donations amounting to RMB 12.9 million for the year ended December 31, 2023[131] Shareholder Information - As of December 31, 2023, Mr. Wu Xubao holds 264,263,000 shares, representing approximately 49.45% of the total issued share capital[161] - Ms. Wu Xuan directly holds a 3.00% stake in Jiangxi Tanwan, while Shangrao Qichuang holds about 11.65%[158] - The total number of unexercised share options under the pre-IPO share option plan is 17,180,414 shares, accounting for approximately 3.2% of the total issued shares as of December 31, 2023[167] - The pre-IPO share option plan allows for the issuance of a maximum of 17,463,918 shares, which have already been issued to ESOP BVIs[167] - The exercise period for the granted share options under the pre-IPO share option plan is ten years from the date of grant[171] Legal and Regulatory Matters - The company has no major contingent liabilities or significant ongoing litigation as of December 31, 2023[72] - The company has not disclosed any related party transactions that constitute connected transactions under the listing rules[187] - The agreements are subject to registration with relevant Chinese authorities as per local laws[200]

Financial Performance - For the year ended December 31, 2023, the company reported a total revenue of RMB 3,142.7 million from its top five games, a decrease of 44.6% compared to RMB 5,751.2 million in 2022[10]. - In 2023, the company's total revenue was RMB 6,514.6 million, a decrease of 26.1% from RMB 8,817.2 million in 2022, primarily due to a decline in revenue from online game publishing business[28]. - Total revenue for the year ended December 31, 2023, was RMB 6,514.6 million, a decrease of 26.0% from RMB 8,817.2 million in 2022[89]. - Gross profit for the same period was RMB 4,573.3 million, down 28.8% from RMB 6,409.7 million in 2022[89]. - Net profit fell by 44.4% from RMB 491.5 million in 2022 to RMB 273.3 million in 2023[46]. - Basic earnings per share for the year was RMB 0.47, down from RMB 9.65 in 2022[90]. - The group’s deferred tax liabilities for 2023 were RMB (61,455,000), a significant increase from RMB (6,940,000) in 2022, indicating a change in tax position[153]. User Metrics - The cumulative registered user base reached 489.3 million by December 31, 2023, up from 356.1 million in 2022, representing an increase of approximately 37.3%[8]. - The average monthly active users (MAU) for 2023 was 8.7 million, down from 10.0 million in 2022, indicating a decline of about 12.9%[8]. - The average revenue per paying user (ARPPU) increased to RMB 469.2 in 2023 from RMB 403.4 in 2022, reflecting a growth of approximately 16.3%[8]. Game Development and Offerings - The company launched 69 new games in 2023, expanding its portfolio to over 350 games in operation[3]. - The company plans to diversify its game offerings in 2024, including MMORPGs, strategy games, casual games, tower defense games, and collectible card games[10]. - The top five games accounted for 48.2% of total revenue in 2023, down from 65.2% in 2022, indicating a strategic shift to reduce reliance on these key titles[10]. - Revenue from self-operated game products decreased by 31.0% from RMB 6,179.6 million in 2022 to RMB 4,264.5 million in 2023, while revenue from co-operated game products decreased by 18.4% from RMB 2,383.8 million to RMB 1,944.8 million[30]. Marketing and Revenue Sources - Revenue from other marketing services, including online literature and short videos, surged by 141.0% to RMB 91.6 million in 2023 from RMB 38.0 million in 2022[5]. - Revenue from consumer goods business, including the fast food brand "Zhazhahui" and the trendy brand "Bro Kooli," was stable at RMB 213.7 million in 2023, slightly down from RMB 215.8 million in 2022[5]. - Revenue from mainland China was RMB 6,084,255,000, down 29.5% from RMB 8,638,210,000 in 2022[134]. - Revenue from Hong Kong increased to RMB 430,330,000 in 2023, compared to RMB 179,011,000 in 2022, representing a growth of 140.4%[134]. Expenses and Cost Management - Sales and distribution expenses decreased by 31.0% from RMB 5,622.4 million in 2022 to RMB 3,880.2 million in 2023, primarily due to a shorter marketing period for new game products launched in 2023[38]. - Administrative expenses increased by 51.0% from RMB 175.7 million in 2022 to RMB 265.3 million in 2023, mainly due to increased equity incentive costs related to the pre-IPO share option plan adopted in November 2022[39]. - R&D costs rose by 8.6% from RMB 157.7 million in 2022 to RMB 171.2 million in 2023, primarily due to increased equity incentive costs from the pre-IPO share option plan[40]. - Other expenses surged from RMB 8.3 million in 2022 to RMB 208.3 million in 2023, mainly due to increased fair value losses on financial assets and goodwill impairment related to a subsidiary[41]. Financial Position and Liquidity - Cash and cash equivalents amounted to RMB 486.9 million as of December 31, 2023, with no significant external financing plans currently in place[56]. - The company's debt-to-equity ratio was 0.45 in 2022 and improved to 0.18 by December 31, 2023[59]. - The current ratio increased from 0.71 in 2022 to 0.84 as of December 31, 2023, indicating improved liquidity[60]. - The company held equity investments in Century Huatong valued at RMB 412.8 million, representing 5.7% of total assets, with a fair value loss of RMB 173.1 million during the reporting period[61]. - Total capital expenditure for 2023 was approximately RMB 23.0 million, used for the acquisition of property, equipment, and other intangible assets[65]. Corporate Governance and Compliance - The audit committee, composed of three independent non-executive directors, reviewed the financial performance and confirmed compliance with accounting standards[82]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance since the listing date[76]. - The board expressed gratitude to the management and employees for their efforts during the reporting period[175]. - The board acknowledged the guidance from regulatory bodies and the long-term support from shareholders and customers[175]. Future Outlook and Strategic Plans - The company plans to enhance its technology and innovation in brand and content development while expanding into international markets, including Southeast Asia and Japan[25]. - The company aims to strengthen its position in the market by launching new game series based on major IPs while maintaining its leadership in existing popular titles[25]. - The company has no significant future investment or acquisition plans as of December 31, 2023[64].

智通财经APP获悉，中旭未来(09890)再跌超20%，2个交易日累计暴跌81%，已回吐上市以来多数涨幅，截至发稿，跌20.53%，报13.24港元，成交额834万港元。 据悉，中旭未来是国内第二大非自研移动游戏产品营销及运营平台，主要通过自营模式及联运模式两种模式运营网络游戏发行业务。该公司业务主要分为三个部分，即互动娱乐业务、速食食品业务及潮玩业务，其中以“贪玩游戏”品牌为主的互动娱乐业务为公司核心业务，九成的营收来自于它。 截至6月30日，公司已运营超过330款游戏产品;营销及运营的游戏产品累计约4.33亿名注册用户，同比增长21.6%。上半年，中旭未来注册用户虽明显增长，但月活用户同同比下滑7.2%至867.82万人，月付费用户更是同比下滑40.3%至105.48万人。尽管上半年月均ARPPU达到509.4元，同比增长21.5%，但并不足以弥补月付费人数下滑的缺失。这也成为公司业绩短期承压的重要原因。 分析人士表示，该股庄家控盘程度已经非常之高了。能发现并及时购进庄股，享受一段搭车坐轿的乐趣，曾经是小额投资人获取成功的一条捷径。但在如今的极端行情下，想跟上庄家吃肉，并不仅仅是技术活，而且还是运气活了。 ...

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2023, representing a 25% increase year-over-year[10]. - The company reported revenue of RMB 3,400.1 million for the six months ended June 30, 2023, a decrease of 25.0% compared to RMB 4,535.7 million for the same period in 2022[23]. - Revenue for the six months ended June 30, 2023, was RMB 3,400,091 thousand, a decrease of 25% compared to RMB 4,535,674 thousand in the same period of 2022[96]. - Revenue from self-operated game marketing and operations was RMB 2,118,937, down 35% from RMB 3,261,892 in the previous year[121]. - The company reported a net profit margin of 15%, which is an improvement from 12% in the previous year[10]. - Net profit decreased by 11.1% from RMB 337.7 million to RMB 300.3 million for the six months ended June 30, 2023[40]. - The adjusted profit for the period was RMB 433.1 million, compared to RMB 345.1 million in the previous year, reflecting a growth of 25.5%[1]. - Total comprehensive income for the period was RMB 320,959 thousand, slightly lower than RMB 337,673 thousand in 2022[99]. - The company reported a profit of RMB 275,654,000 for the six months ended June 30, 2023, compared to RMB 338,199,000 for the same period in 2022, reflecting a decrease of approximately 18.5%[105]. - The total tax expense for the period was RMB 142,393, significantly higher than RMB 61,120 in the same period last year, reflecting an increase in estimated taxable profits in mainland China[128]. User Metrics - Monthly Active Users (MAU) reached 10 million, showing a growth of 15% compared to the previous period[10]. - The average monthly active users (MAU) decreased to 8.7 million from 9.4 million, a decline of 7.2%[19]. - Cumulative registered users reached 432.9 million, up from 356.1 million in the previous year, representing a growth of 21.5%[19]. Game Development and Launches - The company plans to launch two new games by the end of 2023, aiming to capture a larger market share[10]. - The company launched 35 new games during the reporting period, increasing the total number of operated games to over 330[16]. - As of June 30, 2023, the company had 73 games in its pipeline for future marketing and operational efforts[21]. Revenue Sources and Diversification - Revenue from other marketing services increased significantly by 135.9% to RMB 49.3 million compared to RMB 20.9 million in the previous year[17]. - The company aims to diversify its revenue sources through new consumer brands, including "Zhazhahui" and "Bro Kooli," and plans to enhance digital marketing and AI-driven strategies[22]. - Revenue from consumer products increased by 89.9% from RMB 66.8 million to RMB 126.8 million, driven by continuous efforts to promote and strengthen the consumer goods business[27]. Financial Stability and Assets - The company's total equity as of June 30, 2023, was RMB 2,133,749,000, an increase from RMB 1,709,036,000 at the end of 2022, representing a growth of approximately 25%[105]. - Total liabilities as of June 30, 2023, were RMB 7,143,940 thousand, down from RMB 7,889,966 thousand, reflecting improved financial stability[101]. - The company recognized a fair value reserve of RMB 20,698,000 from investments during the period, contributing to the overall equity[105]. - The company reported a significant increase in other income and gains, rising to RMB 386,310 thousand from RMB 202,624 thousand, indicating diversification in revenue streams[96]. Expenses and Cost Management - Selling and distribution expenses decreased by 34.9% from RMB 3,000.6 million to RMB 1,953.2 million, mainly due to reduced marketing and promotional expenses as several game products entered the later stages of their life cycle[31]. - Administrative expenses increased by 101.9% from RMB 63.2 million to RMB 127.6 million, primarily due to new share-based compensation and increased listing expenses[32]. - Research and development costs increased by 22.8% from RMB 70.6 million to RMB 86.7 million, mainly due to new share-based compensation[34]. Cash Flow and Financing - Cash flow from operating activities showed a net outflow of RMB 408,833,000 for the first half of 2023, a significant decrease compared to an inflow of RMB 1,442,892,000 in the same period of 2022[107]. - The company incurred a net cash outflow from financing activities of RMB 386,983,000 for the six months ended June 30, 2023, compared to a net inflow of RMB 539,437,000 in the same period of 2022[108]. - The company reported a net cash flow from investment activities of RMB 1,009,393,000 for the six months ended June 30, 2023, compared to a net cash outflow of RMB 2,383,986,000 in the same period of 2022, indicating a significant improvement[108]. Shareholder Information and Dividends - No interim dividend was recommended for the six months ending June 30, 2023[88]. - A special dividend of RMB 50,000,000 was declared on August 15, 2023, to be paid in cash from internal resources[89]. - The company has not declared or paid any dividends for the six months ended June 30, 2023, consistent with the previous year[129]. Strategic Plans and Future Outlook - The company is exploring potential acquisitions to expand its market presence in Southeast Asia[10]. - The company plans to allocate approximately 28.0% of the proceeds to strengthen relationships with mainstream media platforms to enhance brand awareness and user coverage[71]. - Approximately 10.0% of resources will be allocated over the next four years to support international market expansion and overseas business development, including 4.5% for expanding market share in online gaming and consumer goods[77]. - The company plans to explore potential strategic acquisition opportunities, allocating about 10.0% of resources for this purpose over the next four years[77]. Employee and Management Information - The company has 1,218 full-time employees, with 33.1% in sales and marketing, 29.5% in operations, 25.8% in R&D, and 11.7% in general administration[76]. - The total remuneration for key management personnel for the six months ended June 30, 2023, was RMB 25,865,000, significantly up from RMB 907,000 for the same period in 2022[153]. - The company maintains a competitive compensation package and collaborative work environment to attract and retain qualified employees[79].