7ROAD(HK:00797)2024-09-20 08:54Financial Performance - For the six months ended June 30, 2024, the company recorded total revenue of approximately RMB 139.4 million, representing a decrease of approximately 62.0% compared to the same period in 2023[9]. - The company reported a loss for the period of approximately RMB 6.0 million, which is a decrease of approximately 104.6% compared to the loss in the same period in 2023[10]. - The loss attributable to owners of the company was approximately RMB 7.8 million, representing a decrease of approximately 106.0% compared to the same period in 2023[10]. - Revenue for continuing operations for the six months ended June 30, 2024, was RMB 139,389,000, compared to RMB 366,962,000 for the same period in 2023[28]. - Gross profit for the six months ended June 30, 2024, was RMB 103,533,000, down from RMB 325,958,000 in the same period in 2023[28]. - The Group's game business revenue for the same period was approximately RMB 134.9 million, also reflecting a decrease of approximately 62.0% year-on-year[30][32]. - The total comprehensive loss for the period was RMB 6,224, compared to a total comprehensive income of RMB 131,188 in the same period last year[101]. - The basic and diluted loss per share from continuing operations was RMB (0.004), compared to earnings of RMB 0.059 in 2023[99]. - The company reported a net provision of impairment losses on financial assets of RMB 14,843 for the period[97]. - Total expenses for continuing operations decreased to RMB 165,891,000 in 2024 from RMB 192,923,000 in 2023, reflecting a reduction of approximately 14%[162]. Market Overview - According to the "2024 Global Games Market Report," the global gaming market is expected to reach US$ 187.7 billion in 2024, with a year-on-year increase of 4.5% in the number of game players[11]. - The global mobile gaming market is estimated to be US$ 92.6 billion in 2024, accounting for 49% of the total revenue of the gaming industry, with a year-on-year increase of 3.0%[11]. - China's gaming market recorded actual sales revenue of approximately RMB 147.3 billion from January to June 2024, representing a year-on-year increase of approximately 2.1%[12]. - The number of China's game players reached approximately 670 million from January to June 2024, representing a year-on-year increase of approximately 0.9%[12]. - The overseas market for China's proprietarily developed games recorded actual sales revenue of approximately US$ 8.6 billion, representing a year-on-year increase of 4.2%[12]. Game Development and Strategy - The Group plans to launch multiple games in the second half of 2024, aiming to improve game quality and strengthen global publishing capabilities[19]. - The exclusive mini program game "I'm MT" launched in May 2024 achieved a turnover exceeding RMB10 million in its first month and has surpassed 3 million users[16]. - The mobile game "Gintama" is expected to undergo release tests in the second half of 2024 after completing two tests and optimizing the game[17]. - The classic IP mobile game "DDTank X" is expected to finish development in Q4 2024, with recruitment tests planned to assess user acceptance of product innovations[20]. - The overseas version of "Wartune H5" is expected to be launched globally in the second half of 2024, enhancing the Group's global development strategy[21]. - The Group is actively utilizing AIGC technology in game development to enhance product content and improve R&D efficiency[18]. Financial Position and Cash Flow - As of June 30, 2024, cash and cash equivalents were approximately RMB 50.2 million, up from RMB 48.1 million as of December 31, 2023[42]. - Total borrowings as of June 30, 2024, amounted to nil, a decrease from approximately RMB 231.0 million as of December 31, 2023, primarily due to the disposal of Shanghai Lingsu[42]. - The gearing ratio as of June 30, 2024, was approximately 6.9%, down from 22.9% as of December 31, 2023, due to a higher decrease in total liabilities relative to total assets[42]. - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 41,419,000, a decrease from RMB 220,956,000 in 2023[114]. - Cash flows from investing activities showed a net cash inflow of RMB 49,931,000 for the six months ended June 30, 2024, compared to a net cash outflow of RMB 201,644,000 in 2023[116]. - Net cash used in financing activities was RMB 88,699,000 for the six months ended June 30, 2024, compared to RMB 7,084,000 in 2023, reflecting increased financing costs[116]. Legal and Compliance Matters - Qianhai Huanjing filed a lawsuit claiming approximately RMB 60.2 million related to an intellectual property dispute, which is currently pending retrial[60]. - Proficient City Limited's lawsuit against Qianhai Huanjing and Shenzhen 7Road for RMB 25 million was dismissed, with no further appeals filed[60]. - The Group was not involved in any other material legal proceedings during the six months ended June 30, 2024[61]. - The Company maintained compliance with all applicable code provisions of the CG Code for the six months ended June 30, 2024[86]. - The Company has engaged professional service firms for compliance matters and has adhered to relevant laws and regulations during the reporting period[90]. Shareholder Information - As of June 30, 2024, Mr. Meng Shuqi holds 528,854,000 shares, representing 19.20% of the issued share capital[63]. - The total number of shares in issue as of June 30, 2024, is 2,753,200,000[63]. - Baohu Holdings Limited and Shanghai Bao Hu Investment Management each hold 352,714,000 Shares, representing approximately 12.81% of the registered capital[70]. - The RSU Scheme was approved on March 6, 2018, aimed at incentivizing directors, senior management, and employees to contribute to the group's future development and expansion[75]. - The Company did not declare an interim dividend for the six months ended June 30, 2024[86].