Group 1 - The Hong Kong stock market experienced a collective rise, with the Consumer Theme Index increasing by 0.74% as of May 20 [1] - The Hong Kong Consumer ETF (159735) rose by 1.1% with a turnover rate of 2.25%, driven by significant gains in stocks such as Li Auto and Xiaomi [1] - In April, the total retail sales of consumer goods reached 37,174 billion yuan, marking a year-on-year growth of 5.1%, while retail sales excluding automobiles grew by 5.6% [1] Group 2 - Open Source Securities emphasizes the importance of "emotional consumption" and suggests focusing on leading companies with enhanced brand power and competitiveness [2] - Four investment themes are highlighted: (1) Gold and jewelry brands with differentiated product offerings; (2) Retail enterprises adapting to trends; (3) High-quality domestic beauty brands in growing segments; (4) Medical aesthetics companies with unique product lines [2]

Group 1 - The core viewpoint of the article highlights a decline in Hong Kong's technology sector, with significant drops in popular concepts such as automobiles, industrial machinery, computers, and robotics, while the Hong Kong Technology ETF (513020) fell nearly 1.5% [1] - Foreign capital has significantly increased its holdings in Hong Kong's internet leaders, with Bridgewater Associates reporting a purchase of over 5.4 million shares of Alibaba, marking a 21-fold increase, making it the fourth largest holding [1] - Bridgewater's total assets under management reached $21.6 billion, reflecting a quarter-over-quarter increase of 1.47% [1] Group 2 - Shenwan Hongyuan maintains a positive outlook on Hong Kong stocks compared to A-shares, suggesting that Hong Kong is at the forefront of China's asset revaluation, particularly in the AI industry chain, new consumption, and innovative pharmaceuticals [1] - The Hong Kong Technology ETF (513020) tracks the CSI Hong Kong Stock Connect Technology Index, which includes core technology sectors such as the internet, new energy vehicles, and biomedicine, representing the overall investment value of Chinese technology assets [1] - The Hong Kong Stock Connect Technology Index is more balanced in its technology sector allocation compared to the Hang Seng Technology Index, allowing for better investment opportunities in growth sectors [1]

Core Insights - The eighth Digital China Construction Summit was successfully held in Fuzhou, with NetDragon participating as a strategic partner for the eighth consecutive year [1][3] - NetDragon showcased its digital technology advantages in the fields of digital culture and tourism, and digital education, becoming one of the most popular exhibition areas at the summit [1][5] Digital Culture and Tourism - NetDragon focused on creating a "Digital Culture and Tourism Demonstration Zone" and a "Digital Education Experience Zone," presenting over ten innovative applications and solutions that integrate AI, VR, and AR technologies [2] - The company aims to leverage its technological strengths to enhance the digital transformation of the cultural and tourism industry in Fujian, promoting the integration of gaming and cultural tourism [5][12] - A special plan titled "Digital Mountain and Sea: New Life for Fujian Tourism through Gaming" was initiated to establish a digital cultural tourism model in Fujian [8][10] Digital Education - NetDragon has expanded its digital education footprint globally, covering over 200 million classrooms and benefiting more than 150 million users [16] - The company is actively responding to the "Belt and Road" initiative by promoting international cooperation in vocational education, with projects successfully launched in countries like Thailand and Singapore [16][17] - During the summit, NetDragon showcased various advanced digital education products and solutions, emphasizing its commitment to integrating education with industry [18][21]

Core Insights - The "AI + Education" sector is experiencing a significant value reassessment driven by technological advancements and policy support, particularly with the introduction of DeepSeek, which reduces the cost of AI model development and deployment [1] - The Ministry of Education and other departments have issued guidelines to accelerate digital education, focusing on integration, intelligence, and internationalization, which is expected to stimulate the application of AI in education [1] Company Developments - NetDragon has been a pioneer in the "AI + Education" field, having invested in AI research since 2017 and successfully commercializing various AI educational products [1][2] - The company aims to establish the largest global education content production center in Hong Kong, enhancing the efficiency and quality of interactive educational games [2] - NetDragon's AI education content unit, "Photosynthesis," was showcased at the Global Smart Education Conference in September 2024, highlighting the company's innovative capabilities [2] Strategic Partnerships - NetDragon is collaborating with Thailand's Ministry of Higher Education to launch an online AI education platform, providing vocational training in sectors like new energy vehicles, aligning with national policies for developing skilled talent in emerging markets [2] - The company has formed a strategic partnership with Hong Kong Polytechnic University to integrate advanced AI and vocational training content into its education platforms [2] Technological Integration - NetDragon's subsidiary, Mynd.ai, has been independently listed and is set to launch new SaaS products that will incorporate AI technology, enhancing the educational experience for users [3] - The company is a technical service partner for the National Smart Education Public Service Platform, which has over 163 million registered users, indicating its significant role in the national education framework [3][4] Market Positioning - NetDragon has established a strong foundation in educational technology, with over a decade of experience in content, software, and hardware, positioning itself to benefit from the dual support of technological advancements and favorable policies [4] - The company has been recognized for its collaboration with educational institutions to develop modern industry colleges, showcasing its commitment to integrating education with industry needs [5] Financial Performance - NetDragon's gaming sector is also benefiting from AI applications, with popular games like "Heroes of the Storm" integrating AI features to enhance player experience [6] - The company has a history of consistent dividend payments, with a proposed annual dividend of 0.9 HKD per share for 2024, reflecting a dividend yield of over 9% [6]

Financial Performance - The company reported a 19.1% year-on-year increase in pre-tax profit, reaching RMB 756 million[12]. - Revenue for 2024 was RMB 6,047 million, a decrease of 14.8% year-over-year[29]. - Revenue from gaming and application services was RMB 3,938 million, accounting for 65.1% of total revenue, down 6.0% year-over-year[30]. - Revenue from Mynd.ai business was RMB 2,106 million, representing 34.8% of total revenue, a decrease of 27.6% year-over-year[29]. - Gross profit for 2024 was RMB 3,942 million, a decline of 10.4% compared to the previous year[29]. - Operating profit for 2024 was RMB 745 million, a decrease of 9.3% year-over-year[29]. - Profit attributable to the company's owners was RMB 311 million, down 43.5% from RMB 550 million in 2023[29]. - Cash flow from operating activities was RMB 1,100 million, a decrease of 5.7% year-over-year[29]. - Basic earnings per share for 2024 was RMB 58.60, compared to RMB 103.00 in 2023[24]. - Adjusted EBITDA loss was RMB 172 million, compared to a loss of RMB 78 million in 2023[43]. Cash and Investments - Operating cash flow remained stable at RMB 1.1 billion, supporting the ongoing "AI+" strategy[16]. - The net cash increased by 13.3% to RMB 2.1 billion, providing a solid foundation for future growth[16]. - Cash balance at the end of 2024 was RMB 541 million, down from RMB 650 million at the end of 2023[43]. - Interest-bearing debt decreased by RMB 148 million by the end of 2024[43]. - The company plans to invest RMB 50 million in Wuxi Benge New Materials Technology Co., Ltd., acquiring approximately 2.27% equity[153]. Dividends - The board declared a final dividend of HKD 0.5 per share, a 25.0% increase compared to the previous year[16]. - The final dividend for 2024 is set at HKD 0.50 per ordinary share, reflecting a year-on-year increase of 25.0%[34]. - The interim dividend of HKD 0.40 per share was paid on October 31, 2024, and a final dividend of HKD 0.50 per share is proposed, expected to amount to approximately RMB 246 million[121]. AI and Technology Initiatives - The company successfully implemented an AI production line for gamified educational content, enhancing operational efficiency[14]. - The company aims to deepen the deployment of advanced AI tools across business segments to enhance organizational efficiency[14]. - The "AI+" strategy has led to a reduction in employee costs by nearly RMB 100 million[14]. - The company is actively exploring "AI-native" gaming and interactive educational games to capture new business opportunities[15]. - The company is collaborating with Thailand's Ministry of Higher Education to develop online AI education platforms for vocational training[14]. Market and Competitive Landscape - The company faces increasing competition in the online and mobile gaming industry, with significant players like Electronic Arts and Tencent Holdings posing challenges to market share and talent retention[109]. - The company relies on consumer spending from gamers, which may be affected by economic uncertainties, including inflation and liquidity crises in major economies, potentially impacting financial performance[111]. Employee and Talent Management - The company has successfully attracted 478 outstanding talents from the gaming and education sectors in 2024, including 97 senior elite talents, enhancing the talent structure[70]. - The total number of full-time employees as of December 31, 2024, is 4,593[71]. - The company emphasizes a "people-oriented" management philosophy, focusing on employee experience and providing various welfare programs throughout the employee lifecycle[75]. - The company has initiated large-scale campus recruitment activities, attracting 27,145 resumes from graduates, ultimately hiring 86 outstanding candidates[70]. Governance and Compliance - The board includes independent directors with significant legal and investment experience, ensuring robust governance and oversight[88][86]. - The company is committed to maintaining strong corporate governance through its various committees, including the remuneration and audit committees[88]. - The company strictly adheres to various laws and regulations regarding employee rights and data protection, ensuring compliance with local and international standards[115]. Strategic Partnerships and Collaborations - The company signed a term sheet with Beijing Zhongke Wenge Technology Co., Ltd. for exclusive cooperation in promoting AI services outside mainland China, with a potential investment of RMB 75 million[39]. - The company has established partnerships with educational authorities and institutions to improve educational services[95]. Future Outlook and Plans - The company plans to launch the sequel to its flagship IP "Magic Domain" in 2025, with the new MMORPG mobile game "Code - Dragon" also set for overseas release[38]. - The company is expanding its online education business overseas, covering a wide range of educational fields[95]. - The company is committed to innovation in educational technology, particularly in AI and cloud computing[94]. Risks and Challenges - The group may face significant adverse tax consequences if the tax authorities determine that the contractual arrangements are not established on an arm's length basis[190]. - The group may incur additional tax liabilities if the tax authorities impose penalties for any unpaid taxes[190]. - There are significant risks associated with the contractual arrangements, including potential non-compliance with Chinese laws, which could adversely affect the company's ability to operate[185].

朋友早上好欢迎各位参加网络网络有限公司2024年年度业绩发布会 业绩发布会将会透过路远舟 富途 万德平台同步直播业绩PPT也已经上载至网龙的投资者关系网站ir.netdragon.com 新闻及活动栏目内的网上录播一栏请各位登录下载 大家好 谢谢现在我们就把时间交给梁博士 有请OK thank youIt's that time of the year againThank you for joining our call wherever you areSo good morning, good evening, good afternoon and all thatEspecially what we're going to do todayIs that we're not only taking you through what we have done in 2024But also look forward to 2025I think there's some exciting strategies that we haveWe have our press release 通过这次会议,您会听 ...

Financial Performance - NetDragon Websoft Holdings Limited's overall revenue for 2024 decreased by 14.8% year-on-year to RMB 6 billion[4] - The gaming and application services segment generated revenue of RMB 3.94 billion in 2024, a decline of 6.0% year-on-year[5] - Revenue for 2024 was RMB 6.047 billion, a decrease of 14.8% compared to RMB 7.101 billion in 2023[14] - Gross profit for 2024 was RMB 3.942 billion, down 10.4% from RMB 4.398 billion in 2023[14] - Operating profit for 2024 was RMB 745 million, a decrease of 9.3% from RMB 821 million in 2023[14] - The Mynd.ai business generated RMB 2,106 million in revenue, indicating a significant contribution to overall performance[33] - Revenue from Mynd.ai business was RMB 2.106 billion, a decrease of 27.6% from RMB 2.910 billion in 2023[13] - The revenue from educational services amounted to RMB 526 million, reflecting the company's diversification in service offerings[29] - The revenue from prepaid game cards was RMB 3,425 million, while sales of educational equipment and related products generated RMB 2,015 million[29] - The company reported a profit before tax of RMB 756 million for the year, with a segment profit of RMB 576 million[33] Profitability and Cash Flow - The company achieved a pre-tax profit of RMB 756 million in 2024, reflecting a year-on-year growth of 19.1%[4] - Net cash increased by 13.3% year-on-year to RMB 2.1 billion, with stable operating cash flow of RMB 1.1 billion[4] - Operating cash flow decreased from RMB 1,115 million in 2023 to RMB 1,052 million in 2024, indicating a decline in cash generated from operations[19] - Cash balance at the end of 2024 was RMB 541 million, down from RMB 650 million at the end of 2023[11] - Financing activities generated a net cash inflow of RMB 130 million in 2024, compared to a net cash outflow of RMB 1,695 million in 2023[20] - The company’s investment activities resulted in a net cash outflow of RMB 875 million in 2024, slightly improved from RMB 915 million in 2023[19] Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.50 per ordinary share for 2024, a 25.0% increase year-on-year[4] - The company announced a final dividend of HKD 0.50 per share, up from HKD 0.40 per share in 2023, pending shareholder approval[12] - The board proposed a final dividend of HKD 0.50 per share for the year ending December 31, 2024, totaling approximately RMB 246 million, subject to shareholder approval[70] Assets and Liabilities - Total liabilities increased from RMB 4,045 million in 2023 to RMB 4,414 million in 2024, primarily due to an increase in bank loans from RMB 1,033 million to RMB 1,729 million[18] - The company’s net asset value decreased from RMB 6,174 million in 2023 to RMB 5,866 million in 2024, indicating a reduction in overall equity[18] - The company’s total assets decreased from RMB 6,337 million in 2023 to RMB 6,018 million in 2024, indicating a contraction in the asset base[18] - The asset-liability ratio rose to 0.29 in 2024 from 0.17 in 2023, indicating a significant increase in financial leverage[47] - The company’s net current assets improved to RMB 1,272 million in 2024 from RMB 945 million in 2023, suggesting better liquidity[47] Workforce and Restructuring - As of December 31, 2024, the total number of employees decreased to 4,593 from 5,984 a year earlier, representing a reduction of approximately 23.3%[48] - The company is currently undergoing a restructuring process, which has led to the reduction in workforce across various departments[48] - Research and Development (R&D) staff decreased to 2,505 from 3,021, a decline of about 17.0%[48] - Sales and Marketing personnel reduced to 669 from 817, reflecting a decrease of approximately 18.1%[48] - Production staff saw a significant drop to 563 from 1,264, indicating a reduction of around 55.5%[48] - The company reported a significant reduction in administrative staff, which decreased to 856 from 882, a decline of approximately 2.9%[48] Share Option Plans - The company adopted the 2024 Share Option Plan on June 6, 2024, which allows for a total of 53,126,253 options and reward shares to be granted, equivalent to 10% of the company's shares[56] - The 2024 Share Option Plan is set to be effective for ten years from June 6, 2024, and no options have been granted under this plan as of December 31, 2024[58] - The 2018 Share Option Plan and the 2008 Share Option Plan were terminated on June 6, 2024, and May 24, 2018, respectively, but unexercised options from these plans remain valid[58] - The company has a total of 5,300,000 options under the 2018 Share Option Plan, all of which are unexercised as of December 31, 2024[59] - The company’s share option plans are designed to incentivize employees and service providers based on their contributions to the group[58] Corporate Governance and Compliance - Best Education has complied with the corporate governance code throughout the review year[76] - The audit committee has reviewed the consolidated financial results for the year ending December 31, 2024, and confirmed compliance with applicable accounting standards and regulations[78] - The audit committee consists of three independent non-executive directors, with Li Shengzong serving as the chairman[78] - The company has adopted a code of conduct for securities transactions that meets or exceeds the standards set out in the listing rules[69] Strategic Initiatives - The company signed a term sheet with Beijing Zhongke Wenge Technology Co., Ltd. for exclusive cooperation in promoting AI services, with a potential investment of RMB 75 million[7] - The company is actively developing "AI-native" games and interactive educational games, aiming to capture new business opportunities in the AI era[8] - The newly launched ActivPanel 10 received positive feedback, enhancing the company's market competitiveness[10] - A merger agreement was established on April 18, 2023, involving the registration of eLMTree as a wholly-owned subsidiary of Best Education, transferring various educational businesses to eLMTree[65] - A special dividend of approximately HKD 71.7 million was paid to shareholders as a physical distribution of shares held indirectly through NetDragon BVI[68]

Financial Performance - Revenue for the first half of 2024 was RMB 3.3 billion, a decrease of 10.3% year-on-year[4] - Revenue from game and application services was RMB 2.12 billion, accounting for 64.3% of total revenue, a decrease of 0.8% year-on-year[4] - Revenue from Mynd.ai was RMB 1.18 billion, accounting for 35.7% of total revenue, a decrease of 23.5% year-on-year[4] - Gross profit was RMB 2.2 billion, a decrease of 3.8% year-on-year[4] - Operating profit was RMB 634 million, a decrease of 9.3% year-on-year[4] - Non-GAAP operating profit was RMB 640 million, a decrease of 7.5% year-on-year[4] - Profit attributable to owners of the company was RMB 400 million, a decrease of 20.0% year-on-year[4] - Mynd.ai reported an operating loss of RMB 111 million, an increase of 131.3% year-on-year[4] - Overall game revenue for the first half of 2024 reached RMB 1.86 billion, a decrease of 3.0% year-on-year, accounting for 87.8% of game and application service revenue[9] - The flagship IP "Magic Domain" generated revenue of RMB 1.69 billion, with a year-on-year decline of 3.8% due to external factors and preparations for a new game launch[9] - The "Honor of Kings" IP saw a revenue increase of 29.6% year-on-year, supported by significant gameplay improvements and successful esports events[10] - The "Conquer" IP experienced a 6.6% year-on-year revenue growth, attributed to major content updates and innovative gameplay[10] - The company reported a total of RMB 2,121 million from game and application services, compared to RMB 2,139 million in the previous year, showing a slight decline[89] - The company reported a profit attributable to owners of RMB 500 million for the six months ended June 30, 2024[68] - The total comprehensive income for the period was RMB 513 million, compared to RMB 388 million in the same period last year, representing a growth of 32.2%[68] Dividend and Shareholder Information - The company declared an interim dividend of HKD 0.40 per ordinary share for the six months ended June 30, 2024[4] - The company plans to distribute an interim dividend of HKD 0.4 per share for the six months ending June 30, 2024, compared to an interim special dividend and interim dividend of HKD 1.0 and HKD 0.4 per share in 2023[38] - As of June 30, 2024, the company's major shareholder DJM Holding Ltd. holds 191,078,100 shares, representing 35.97% of the issued share capital[46] - Liu Dejian, a director, holds 216,384,938 shares, which accounts for 40.73% of the company's shares[41] - The company has a total of 5,779,040 shares held by director Liang Nianjian, representing 1.09%[41] - Chen Hongzhan, another director, owns 11,197,019 shares, which is 2.11% of the total shares[42] - The company has a total of 43,733,320 shares held by International Data Group, representing 8.23%[46] - The company has a total of 41,374,375 shares held by Zhou Quan, representing 7.79%[46] - The company has a total of 34,437,519 shares held by the late Zheng Hui, representing 6.48%[46] - Liu Luoyuan holds 4.37% of the shares, with a total of 21,541,819 shares held by certain trust beneficiaries[43] Debt and Financial Position - As of June 30, 2024, total bank loans and other debts amounted to RMB 1.967 billion, an increase from RMB 1.647 billion as of December 31, 2023[17] - The debt-to-equity ratio was 0.21 as of June 30, 2024, up from 0.17 at the end of 2023[20] - Total equity was approximately RMB 6.28 billion as of June 30, 2024, compared to RMB 6.17 billion at the end of 2023[21] - The company held cash and cash equivalents of RMB 4.94 billion and established sufficient available credit lines[12] - The company’s total liabilities decreased to RMB 4,052 million from RMB 4,045 million, showing a slight reduction[67] - The company’s total liabilities as of June 30, 2024, were RMB 613 million, unchanged from the previous reporting period[83] - The company’s current liabilities decreased to RMB 1,390 million as of June 30, 2024, from RMB 1,518 million as of December 31, 2023[118] Employee and Talent Management - As of June 30, 2024, the total number of employees in the group is 6,123, an increase from 5,984 in December 2023 and 5,207 in June 2023[27] - The group successfully attracted 294 new talents in the first half of 2024, including 77 senior elite talents, enhancing team strength significantly[28] - The company has implemented a digital transformation strategy in human resources, focusing on AI-enabled management and data-driven decision-making[29] - The company is committed to continuous improvement in human resource allocation and has established internship bases to nurture potential future stars[28] - The company has introduced a certification system for employees to enhance their skills and benefits, with a focus on task-oriented management[33] Research and Development - Research and development expenses rose to RMB 696 million, compared to RMB 641 million in the previous year, indicating a focus on innovation[64] - The company plans to continue its focus on research and development projects in China, supported by government subsidies[99] Market Expansion and Product Development - The company continues to explore new strategies for market expansion and product development, although specific details were not disclosed in the report[84] - The company plans to launch four to five new games based on existing flagship IPs and new IPs within the next six to nine months[11] - The new game "Code - Alpha" is expected to launch in multiple countries in the second half of the year, contributing to revenue growth[8] Corporate Governance and Compliance - The company has complied with the corporate governance code throughout the review period, ensuring adherence to the standards set forth in the listing rules[59] - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial results for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[59] Financial Assets and Liabilities - The company’s financial assets and liabilities are measured at fair value, categorized into three levels based on the observability of inputs used in the valuation[139] - Financial assets measured at fair value through profit or loss totaled RMB 255 million as of June 30, 2024, compared to RMB 205 million as of January 1, 2024, indicating an increase of 24.39%[145] Related Party Transactions - The group incurred related party transactions totaling RMB 4 million for services provided to Fuzhou 851 during the period, compared to RMB 6 million for the same period last year[153] - The group has ongoing related party transactions, including a lease agreement with Fuzhou 851 for office property in China[153]

Revenue Performance - Domestic game revenue increased by 2.1% year-on-year to RMB 1.36 billion, driven by enhanced player engagement and retention[2] - Overall game revenue for the first half of 2024 reached RMB 1.86 billion, a decrease of 3.0% year-on-year, accounting for 87.8% of game and application service revenue[4] - The flagship IP "Magic Domain" generated revenue of RMB 1.69 billion, with a year-on-year decline of 3.8% due to external factors affecting the overseas version[4] - The "Honor of Kings" IP saw a 29.6% year-on-year revenue increase, attributed to gameplay enhancements and successful esports events[5] - Revenue for the first half of 2024 was RMB 3.3 billion, a decrease of 10.3% year-on-year[9] - Revenue from games and application services was RMB 2.12 billion, accounting for 64.3% of total revenue, a decrease of 0.8% year-on-year[9] - Revenue from Mynd.ai was RMB 1.18 billion, accounting for 35.7% of total revenue, a decrease of 23.5% year-on-year[9] - Total revenue for the six months was RMB 3,301 million, down from RMB 3,681 million, indicating a decline of 10.3%[14] - Revenue from prepaid game cards was RMB 1,862 million, while revenue from education services was RMB 276 million, contributing to a total revenue of RMB 3,301 million for the six months ended June 30, 2024[29] Profitability and Financial Metrics - Gross profit was RMB 2.2 billion, a decrease of 3.8% year-on-year[9] - Operating profit for the six months ended June 30, 2024, was RMB 634 million, a decrease of 9.3% compared to RMB 699 million in 2023[12] - Non-GAAP operating profit was RMB 640 million, down from RMB 692 million, reflecting a decline of 7.5% year-over-year[12] - Profit attributable to the company's owners was RMB 400 million, a decrease of 20% from RMB 500 million in the previous year[12] - Gross profit margin decreased to 66.7% from 62.1%, with gross profit at RMB 2,199 million compared to RMB 2,287 million[14] - Total comprehensive income for the period was RMB 294 million, down from RMB 513 million, reflecting a decrease of 42.7%[15] Cash Flow and Assets - Operating cash flow increased by RMB 340 million compared to the same period last year[7] - Cash and cash equivalents increased to RMB 2,382 million from RMB 2,241 million, showing a growth of 6.3%[16] - Total assets as of June 30, 2024, were RMB 11,561 million, compared to RMB 10,982 million at the end of 2023, representing a growth of 5.3%[18] - The company's net asset value increased to RMB 6,280 million from RMB 6,174 million, reflecting an increase of 1.7%[18] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 259 million, a decrease of 43.4% compared to RMB 457 million for the same period in 2023[19] - The net cash used in investing activities was RMB 247 million, down from RMB 549 million year-over-year, indicating a reduction of 55.1%[19] - The net cash generated from financing activities increased significantly to RMB 156 million from RMB 20 million, representing a growth of 680%[19] Game Development and Future Plans - The new game "Code - Alpha" is expected to launch in multiple countries in the second half of the year, contributing to revenue growth[2] - The new Roguelike game "Star Sea Assault" received an 8.0 user rating on TapTap and is projected for global release in 2025[5] - The company plans to implement a multi-faceted growth strategy for the "Magic Domain" IP, including the launch of "Magic Domain Rebirth" in Q1 2025[4] - The company is actively developing new games targeting various genres, including MMORPG and card games, to expand its market presence[5] - The overseas market for "End of Oath" is expected to launch in the first half of 2025, following positive feedback from testing[5] - Mynd.ai plans to launch four to five new games based on existing flagship IP and new IP in the next six to nine months[6] Shareholder and Corporate Governance - The company paid a mid-term dividend of HKD 0.40 per share, amounting to RMB 194 million[37] - The company has complied with the corporate governance code throughout the review period[76] - The Audit Committee was established on October 15, 2007, to oversee the company's financial reporting and internal control systems[77] - The Audit Committee consists of three independent non-executive directors, including the chairman, Mr. Li Shengzong[77] - The interim financial results for the six months ending June 30, 2024, have been reviewed by the Audit Committee, which confirmed compliance with applicable accounting standards[77] Debt and Liabilities - The total liabilities decreased from RMB 1,555 million to RMB 1,425 million, a reduction of approximately 8.4%[43] - The company added bank loans totaling RMB 863 million during the reporting period, compared to RMB 703 million in the previous six months[45] - The total bank loans amounted to approximately RMB 1,318 million, up from RMB 1,034 million as of December 31, 2023, with fixed-rate loans increasing to RMB 1,121 million from RMB 762 million[52] - The asset-liability ratio increased to 0.21 as of June 30, 2024, from 0.17 as of December 31, 2023[52] Employee and Share Option Plans - The total number of employees increased to 6,123 as of June 30, 2024, from 5,984 as of December 31, 2023, with R&D staff rising to 3,165 from 3,021[53] - The company has adopted the 2024 Share Option Scheme and the 2024 Share Award Scheme, which collectively allow for a total of 53,126,253 share options and awards, representing 10% of the company's shares[62] - The 2024 Share Option Scheme is set to last for ten years starting from June 6, 2024, and aims to reward eligible participants for their contributions to the group[63] - The company’s share option plans are designed to incentivize employees and service providers for their contributions to the group[63]

Share Valuation - The fair value of the awarded shares on July 27, 2023, and October 27, 2023, were HKD 3,696,000 and HKD 1,668,000 respectively[1] - The closing prices of the shares prior to the awards on July 27, 2023, and October 27, 2023, were HKD 14.128 and HKD 13.74 respectively[1] Expense Recognition - The total amount to be recognized as expenses for the awarded shares is based on their fair value, considering all market performance conditions[1] - The company will adjust its estimates of the number of shares expected to vest based on non-market vesting and service conditions at each reporting period end[1] - The adjustments to the original estimates will be reflected in the consolidated income statement and will correspondingly adjust equity[1] Reporting Impact - The information provided does not affect other data disclosed in the 2023 annual report[2]