中手游(00302) - 2024 - 中期财报

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,233.3 million, a decrease of 19.7% compared to the same period in 2023[8] - Net loss for the six months ended June 30, 2024, was RMB 241.1 million, primarily due to investment impairments and non-operating expenses totaling RMB 175.8 million and non-operating financial asset impairments of RMB 62.9 million[10] - Revenue decreased by 19.7% from RMB 1,535.4 million in H1 2023 to RMB 1,233.3 million in H1 2024, primarily due to declines in game publishing and development revenues[34] - Game publishing revenue decreased by 17.8% from RMB 1,217.0 million in H1 2023 to RMB 999.9 million in H1 2024, despite strong performance from new games like "Douluo Dalu: Shrek Academy"[34] - Game development revenue decreased by 51.2% from RMB 258.6 million in H1 2023 to RMB 126.3 million in H1 2024, mainly due to the lifecycle decline of older games and lack of new releases[34] - IP licensing revenue increased by 79.0% from RMB 59.8 million in H1 2023 to RMB 107.1 million in H1 2024, driven by licensing deals for "Xian Jian Qi Xia Zhuan" and "Street Basketball"[34] - Gross profit decreased by 27.8% from RMB 516.2 million in H1 2023 to RMB 372.8 million in H1 2024, with gross margin declining from 33.6% to 30.2%[37] - Sales costs decreased by 15.6% from RMB 1,019.2 million in H1 2023 to RMB 860.6 million in H1 2024, primarily due to reduced revenue and lower channel and CP supplier fees[36] - Adjusted net loss was RMB 208.0 million in H1 2024, compared to an adjusted net profit of RMB 76.2 million in H1 2023[31] - The company reported a net loss of RMB 241.1 million in H1 2024, compared to a net profit of RMB 51.0 million in H1 2023[30] - Revenue for the first half of 2024 decreased to RMB 1,233,336 thousand, a decline of 19.7% compared to RMB 1,535,444 thousand in the same period of 2023[81] - Gross profit for the first half of 2024 was RMB 372,764 thousand, down 27.8% from RMB 516,195 thousand in the first half of 2023[81] - Net loss attributable to owners of the parent company for the first half of 2024 was RMB 236,220 thousand, compared to a profit of RMB 56,824 thousand in the same period of 2023[81] - Total comprehensive loss for the first half of 2024 was RMB 228,722 thousand, a significant decline from a comprehensive income of RMB 86,463 thousand in the first half of 2023[82] - The company reported a net loss of RMB 236.22 million for the six months ended June 30, 2024, compared to a net profit of RMB 56.82 million in the same period last year[85] - Total equity decreased from RMB 5.69 billion at the beginning of 2024 to RMB 5.49 billion as of June 30, 2024[85] - Operating cash flow decreased significantly to RMB 12.13 million in the first half of 2024, down from RMB 124.87 million in the same period last year[87] - Investment activities resulted in a net cash outflow of RMB 59.52 million in the first half of 2024, primarily due to the acquisition of intangible assets worth RMB 105.29 million[88] - The company raised RMB 333.64 million in new bank loans during the period, while repaying RMB 359.12 million of existing loans[88] - Cash and cash equivalents decreased by RMB 51.97 million to RMB 164.78 million as of June 30, 2024[88] - The company incurred a goodwill impairment loss of RMB 16.84 million and other intangible asset impairment losses totaling RMB 24.25 million during the period[87] - Share-based compensation expenses increased to RMB 28.18 million in the first half of 2024, up from RMB 19.34 million in the same period last year[87] - The company repurchased shares worth RMB 974,000 during the period[85] - Exchange rate fluctuations resulted in a gain of RMB 12.33 million, partially offsetting the net loss for the period[85] - Total revenue for the six months ended June 30, 2024, was RMB 1,233,336 thousand, a decrease compared to the same period in 2023[93] - Revenue from game publishing was RMB 999,925 thousand, accounting for 81.1% of total revenue[93] - Revenue from game development was RMB 126,330 thousand, a significant decrease from RMB 258,634 thousand in the same period last year[93][94] - Revenue from intellectual property licensing increased to RMB 107,081 thousand, up from RMB 59,806 thousand in the same period last year[93][94] - Revenue from mainland China accounted for RMB 1,056,960 thousand, representing 85.7% of total revenue[96] - Revenue from other countries/regions was RMB 176,376 thousand, accounting for 14.3% of total revenue[96] - The company reported a pre-tax loss of RMB 210,607 thousand for the six months ended June 30, 2024, compared to a pre-tax profit of RMB 42,572 thousand in the same period last year[93][94] - Sales and distribution expenses increased to RMB 148,554 thousand, up from RMB 120,324 thousand in the same period last year[93][94] - Administrative expenses decreased to RMB 192,430 thousand, down from RMB 351,732 thousand in the same period last year[93][94] - The company's financial asset impairment losses increased to RMB 62,859 thousand, up from RMB 35,114 thousand in the same period last year[93][94] - Total revenue for the six months ended June 30, 2024, was RMB 1,535,444 thousand, with mobile game distribution contributing RMB 1,217,004 thousand, game development services contributing RMB 258,634 thousand, and intellectual property licensing contributing RMB 59,806 thousand[97] - Revenue from mainland China accounted for RMB 1,410,765 thousand, while revenue from other countries/regions was RMB 124,679 thousand[97] - Other income and net gains for the six months ended June 30, 2024, totaled RMB 4,631 thousand, a significant decrease from RMB 69,573 thousand in the same period in 2023, primarily due to a reduction in government grants and fair value gains on financial assets[98] - Financing costs for the six months ended June 30, 2024, increased to RMB 11,109 thousand from RMB 9,859 thousand in the same period in 2023, driven by higher interest expenses on bank and other borrowings[99] - Pre-tax loss for the six months ended June 30, 2024, included significant expenses such as RMB 683,585 thousand in commissions to channels and third-party game developers, RMB 136,027 thousand in promotional expenses, and RMB 188,198 thousand in employee benefits[100] - Research and development costs for the six months ended June 30, 2024, were RMB 210,459 thousand, with RMB 100,286 thousand capitalized, resulting in a net R&D expense of RMB 110,173 thousand[100] - The company recognized impairment losses on goodwill, other intangible assets, and investments in joint ventures and associates totaling RMB 45,684 thousand for the six months ended June 30, 2024[100] - Government grants received during the six months ended June 30, 2024, amounted to RMB 2,171 thousand, a significant decrease from RMB 11,848 thousand in the same period in 2023[98] - The company recorded a fair value loss on financial assets at fair value through profit or loss of RMB 59,099 thousand for the six months ended June 30, 2024, compared to a gain of RMB 27,769 thousand in the same period in 2023[100] - Trade receivables impairment losses for the six months ended June 30, 2024, were RMB 29,123 thousand, a decrease from RMB 52,854 thousand in the same period in 2023[100] - The company's total tax expense for the six months ended June 30, 2024, was RMB 30,444 thousand, compared to a tax credit of RMB 8,423 thousand for the same period in 2023[105] - The company reported a net loss attributable to ordinary equity holders of RMB 236,220 thousand for the six months ended June 30, 2024, compared to a profit of RMB 56,824 thousand for the same period in 2023[107] - The company added assets worth RMB 1,491 thousand in the six months ended June 30, 2024, compared to RMB 2,398 thousand in the same period in 2023[109] - The fair value of the company's financial assets at fair value through profit or loss was RMB 1,918,832 thousand as of June 30, 2024, compared to RMB 2,021,044 thousand as of June 30, 2023[110] - The fair value of the investment in China Prosperity Capital Mobile Internet Fund L.P. was RMB 223,446,000 as of June 30, 2024, up from RMB 218,359,000 as of December 31, 2023[111] - The fair value of the investment in Angel Venture Capital (Shenzhen) was RMB 212,000,000 as of June 30, 2024, down from RMB 219,000,000 as of December 31, 2023[111] - Trade receivables net of impairment provisions were RMB 1,138,922,000 as of June 30, 2024, compared to RMB 1,187,136,000 as of December 31, 2023[112] - Prepayments and other receivables totaled RMB 1,590,275,000 as of June 30, 2024, down from RMB 1,719,279,000 as of December 31, 2023[114] - Trade payables amounted to RMB 241,543,000 as of June 30, 2024, down from RMB 261,054,000 as of December 31, 2023[115] - The company repurchased 1,036,000 ordinary shares in the open market during the six months ended June 30, 2024[116] - The company issued 100,000,000 subscription shares at HK$1.68 per share for a total consideration of HK$168,000,000 on July 22, 2024[117] - Share-based compensation expenses for the six months ended June 30, 2024 were RMB 28,184,000, up from RMB 19,344,000 in the same period of 2023[118] - The fair value of equity-settled share options granted in 2024 was estimated using a binomial model with an exercise price of HK$1.50 per share and an expected volatility of 52.14%[120] - The company has no significant contingent liabilities as of June 30, 2024[121] - Capital commitments for IP and game licenses as of June 30, 2024 were RMB 251,195 thousand, a decrease from RMB 280,017 thousand as of December 31, 2023[122] - Promotional services from Shenzhen Spark Fantasy Interactive Entertainment Co., Ltd. increased to RMB 18,953 thousand in the first half of 2024, up from RMB 3,034 thousand in the same period of 2023[124] - Non-trade related receivables from Mr. Fan Yingjie decreased to RMB 7,851 thousand as of June 30, 2024, down from RMB 8,851 thousand as of December 31, 2023[125] - Trade-related payables to Shenzhen Spark Fantasy Interactive Entertainment Co., Ltd. increased to RMB 2,334 thousand as of June 30, 2024, up from RMB 1,998 thousand as of December 31, 2023[126] - Total remuneration for key management personnel in the first half of 2024 was RMB 23,233 thousand, including RMB 17,766 thousand in equity-settled share-based payments[127] - Financial assets at fair value through profit or loss decreased to RMB 1,918,832 thousand as of June 30, 2024, down from RMB 2,021,044 thousand as of December 31, 2023[129] - Financial liabilities at amortized cost decreased to RMB 799,053 thousand as of June 30, 2024, down from RMB 843,731 thousand as of December 31, 2023[130] - The fair value of financial instruments measured at amortized cost is considered to be reasonably close to their carrying amounts due to their short-term nature[131] - Fair value of financial assets measured at fair value through profit or loss increased to RMB 1,918,832 thousand as of June 30, 2024, compared to RMB 2,021,044 thousand as of December 31, 2023[136] - Non-listed equity investments under fair value through profit or loss decreased to RMB 1,155,715 thousand as of June 30, 2024, from RMB 1,251,887 thousand as of December 31, 2023[136] - Contingent consideration for business combinations under fair value through profit or loss increased to RMB 101,000 thousand as of June 30, 2024, from RMB 100,000 thousand as of December 31, 2023[137] - The long-term growth rate for fair value measurement using discounted cash flow method is 2%, with an operating profit margin range of 15% to 58%[133] - The weighted average cost of capital (WACC) for fair value measurement ranges from 17% to 26% as of June 30, 2024, compared to 17% to 25% as of December 31, 2023[133] - The market liquidity discount for fair value measurement using the adjusted net asset method based on equity distribution remains at 16% as of June 30, 2024[133] - The volatility for fair value measurement using the binomial model ranges from 55% to 94% as of June 30, 2024, compared to 53% to 94% as of December 31, 2023[133] - The discount rate for fair value measurement using the discounted cash flow method ranges from 23% to 29% as of June 30, 2024, compared to 22% to 26% as of December 31, 2023[133] - The estimated net income volatility for fair value measurement using the Monte Carlo simulation method is 54% as of June 30, 2024, compared to 51% as of December 31, 2023[134] - The discount rate for fair value measurement using the discounted cash flow method for financial liabilities is 8% as of June 30, 2024, compared to 7% as of December 31, 2023[134] User Metrics - Average monthly active users (MAU) for the six months ended June 30, 2024, were 14,392 thousand, down from 15,627 thousand in the same period in 2023[11] - Average monthly paying users (MPU) for the six months ended June 30, 2024, were 1,027 thousand, down from 1,132 thousand in the same period in 2023[11] - ARPPU (Average Revenue Per Paying User) for the six months ended June 30, 2024, was RMB 200.2, down from RMB 226.1 in the same period in 2023[11] - Total new registered users for the six months ended June 30, 2024, were 47,297 thousand, down from 48,683 thousand in the same period in 2023[11] - ARPPU (Average Revenue Per Paying User) is a key metric for the company, calculated as the revenue recognized from a specific game, game type, or all games divided by the number of paying users for that game, game type, or all games during a specific period[141] - The company's monthly active users (MAU) and monthly paying users (MPU) are critical metrics, with MAU referring to the number of active users in a given month and MPU referring to the number of paying users in a given month[142] Game Performance and Launches - The company's self-developed game "Sword and Fairy World" is expected to launch within 2024, with no revenue generated during the testing period[10] - The game "Douluo Continent: Shrek Academy" generated over RMB 100 million in revenue in its first month after launch in January 2024[12] - The game "Battle Through the Heavens: Peak Duel" was officially launched in mainland China in June 2024, with pre-registrations exceeding 6 million[12] - The new mini-game "消個錘子" ranked 32nd on the WeChat Game Best-Seller List and first in the tower defense and merge-elimination category, with plans to expand to more domestic channels and overseas regions including Hong Kong, Macau, Taiwan, Singapore, and Malaysia[13] - The card-based RPG game "新仙劍奇俠傳之揮劍問情" achieved the top spot on the Apple App Store free chart in Hong Kong, Macau, and Taiwan, and ranked first on the best-seller chart in Hong Kong and Macau, and third in Taiwan during its launch month[14] - The open-world game "仙劍世界" has nearly 5 million pre-registrations and is expected to launch in 2024 after its fourth test[16] - The strategic game "城主天下" is in the optimization phase and is expected to scale up promotion in the second half of 2024[17] - The company's game "Douluo Continent: Shrek Academy" won the "Best National Comic IP Game" award at the Huawei Developer Conference in