BOYAA(00434)2024-11-21 04:00Revenue Performance - Total revenue for the nine months ended September 30, 2024, was RMB 318.193 million, an 8.1% increase year-over-year[4] - Net game revenue for the nine months ended September 30, 2024, was RMB 305.456 million, a 3.8% increase year-over-year[4] - Mobile game revenue for the nine months ended September 30, 2024, was RMB 216.303 million, a 5.6% increase year-over-year[4] - Revenue from "Texas Hold'em" for the nine months ended September 30, 2024, was RMB 197.915 million, a 6.2% increase year-over-year[6] - Revenue from other language versions (excluding Simplified Chinese) for the nine months ended September 30, 2024, was RMB 292.613 million, a 4.4% increase year-over-year[6] - Total revenue for the three months ended September 30, 2024, was RMB 104.826 million, a 4.8% increase year-over-year[4] - Mobile game revenue for the three months ended September 30, 2024, was RMB 72.350 million, a 3.9% increase year-over-year[4] - Revenue from "Texas Hold'em" for the three months ended September 30, 2024, was RMB 66.727 million, a 5.0% increase year-over-year[6] - Revenue from other language versions (excluding Simplified Chinese) for the three months ended September 30, 2024, was RMB 96.062 million, a 0.2% increase year-over-year[6] - Total revenue for the nine months ended September 30, 2024, was approximately RMB 318.2 million, an increase of 8.1% year-over-year, driven by digital asset appreciation and increased online gaming revenue[10] - Q3 2024 revenue was approximately RMB 104.8 million, up 4.8% year-over-year, primarily due to digital asset appreciation[10] - Revenue for the three months ended September 30, 2024, was approximately RMB 104.8 million, a 4.8% increase compared to RMB 100.0 million in the same period last year, driven by digital asset appreciation gains[17] - Revenue breakdown for the three months ended September 30, 2024: mobile games (69.0%), web games (26.6%), and digital asset appreciation (4.4%)[17] - Revenue for the nine months ended September 30, 2024, was RMB 318.2 million, an increase from RMB 294.3 million in the same period in 2023[57] - Total revenue for the nine months ended September 30, 2024, was RMB 318,193 thousand, compared to RMB 294,320 thousand in the same period last year[87] - Revenue from games in Simplified Chinese for the three months ending September 30, 2024, was RMB 4,218 thousand, a slight increase from RMB 4,155 thousand in the same period in 2023[96] - Revenue from games in other languages for the three months ending September 30, 2024, was RMB 96,062 thousand, slightly up from RMB 95,880 thousand in the same period in 2023[96] - Total revenue for the three months ending September 30, 2024, was RMB 100,280 thousand, compared to RMB 100,035 thousand in the same period in 2023[96] - The company's revenue for the nine months ended September 30, 2024, was RMB 318,193 thousand, an 8.1% increase year-over-year[158] Digital Assets and Cryptocurrency - Bitcoin growth rate as of September 30, 2024, compared to December 31, 2023, was 52,600.0%[4] - The company plans to increase its Bitcoin reserves as part of its strategic development in the Web3 sector, potentially raising funds through secondary market offerings[14] - The company has been authorized to purchase up to 54,022 per Bitcoin[41] - Fair value of digital assets as of September 30, 2024 was approximately RMB 1,569.0 million, compared to RMB 78.6 million as of December 31, 2023[41] - The company holds approximately 2,688 Bitcoins as of the announcement date, with an average cost of approximately 2,755 per Ether[41] - The company's Bitcoin holdings increased from 5 as of December 31, 2023, to 2,635 as of September 30, 2024[37] - The company's digital assets fair value gain for the nine months ended September 30, 2024 was approximately RMB 98.1 million[41] - Investment in digital assets amounted to RMB 1,451,191 thousand during the nine months ended September 30, 2024[67] - Web3-related business generated RMB 12,737 thousand in revenue from digital asset appreciation for the nine months ended September 30, 2024[88] - Investment in digital assets: RMB 1,568,981,000 as of September 30, 2024 (2023: RMB 78,598,000)[133] Profit and Loss - Non-IFRS adjusted net profit for the nine months ended September 30, 2024, was approximately RMB 216.4 million, a 148.5% increase year-over-year, mainly due to digital asset fair value gains and increased revenue[11] - Q3 2024 non-IFRS adjusted net loss was approximately RMB 71.9 million, compared to a net profit of RMB 30.1 million in Q3 2023, due to reduced digital asset fair value gains[11] - Gross profit for the three months ended September 30, 2024, was approximately RMB 74.0 million, a 7.7% increase compared to RMB 68.7 million in the same period last year, with a gross margin of 70.6%[22] - Other losses net for the three months ended September 30, 2024, were approximately RMB 143.3 million, a significant increase compared to RMB 13.8 million in the same period last year, primarily due to a decrease in the fair value of digital assets[26] - The company's loss attributable to owners for the three months ended September 30, 2024, was approximately RMB 72.1 million, compared to a profit of RMB 29.6 million in the same period last year, mainly due to changes in the fair value of digital assets[31] - Adjusted loss for the three months ended September 30, 2024 was approximately RMB 71.9 million, compared to an adjusted profit of RMB 30.1 million for the same period in 2023[33] - Gross profit for the nine months ended September 30, 2024, was RMB 225.7 million, up from RMB 198.4 million in the same period in 2023[57] - Operating profit for the nine months ended September 30, 2024, was RMB 219.7 million, compared to RMB 58.2 million in the same period in 2023[57] - Net profit attributable to the company's owners for the nine months ended September 30, 2024, was RMB 212.3 million, up from RMB 85.1 million in the same period in 2023[57] - Segment profit for mobile games was RMB 136,540 thousand, while Web3-related business contributed RMB 110,819 thousand in segment profit for the nine months ended September 30, 2024[77] - Pre-tax profit for the nine months ended September 30, 2024, was RMB 233,318 thousand, a significant increase from RMB 97,777 thousand in the same period last year[77] - Gross profit for the nine months ended September 30, 2024, was RMB 255,694 thousand, a 13.7% increase year-over-year[158] - Operating profit for the nine months ended September 30, 2024, was RMB 219,698 thousand, a 277.4% increase year-over-year[158] - Net profit for the nine months ended September 30, 2024, was RMB 212,325 thousand, a 149.4% increase year-over-year[158] - Non-IFRS adjusted net profit for the nine months ended September 30, 2024, was RMB 216,354 thousand, a 148.5% increase year-over-year[158] User Metrics and Engagement - Daily active users (DAU) increased by 4.4% quarter-over-quarter to 1.17 million in Q3 2024, while monthly active users (MAU) rose by 10.5% to 4.5 million[13] - Paying players decreased by 2.9% quarter-over-quarter to 201,000 in Q3 2024, with mobile gaming paying players down 2.5% to 199,000[13] - Mobile gaming ARPPU for "Texas Hold'em" increased by 25.3% quarter-over-quarter to RMB 226.9 in Q3 2024[13] - The company successfully hosted the BPT brand series event in Q3 2024, attracting approximately 78.6 thousand participants from multiple countries and regions[13] Financial Position and Assets - Cash and cash equivalents as of September 30, 2024 were approximately RMB 66.9 million, compared to RMB 744.3 million as of December 31, 2023[43] - The company's cash and cash equivalents are denominated in RMB (14.4%), USD (58.6%), and other currencies (27.0%)[43] - The fair value of equity investments measured at fair value through other comprehensive income was approximately RMB 10.5 million as of December 31, 2023, but decreased to approximately zero as of September 30, 2024[44] - The company sold all its shares of Xiaomi Group (HKEX: 1810) in the public market during the nine months ended September 30, 2024, with proceeds used for general working capital[44] - The fair value of investments measured at fair value through profit or loss was approximately RMB 79.4 million as of September 30, 2024, down from RMB 208.5 million as of December 31, 2023, with a fair value loss of RMB 13.1 million for the nine months ended September 30, 2024[46] - The company's capital expenditure for the nine months ended September 30, 2024, was approximately RMB 3.6 million, a decrease from RMB 10.1 million in the same period in 2023[52] - Total assets increased to RMB 2,168,469 thousand as of September 30, 2024, compared to RMB 1,928,672 thousand as of December 31, 2023[61] - Digital assets surged to RMB 1,568,981 thousand as of September 30, 2024, up from RMB 78,598 thousand as of December 31, 2023[61] - Total equity rose to RMB 1,834,272 thousand as of September 30, 2024, from RMB 1,598,789 thousand as of December 31, 2023[63] - Net cash from operating activities was RMB 206,792 thousand for the nine months ended September 30, 2024, compared to RMB 86,267 thousand for the same period in 2023[67] - Cash and cash equivalents decreased to RMB 66,905 thousand as of September 30, 2024, from RMB 744,260 thousand as of December 31, 2023[67] - Prepayments for investment properties were RMB 56,272 thousand as of September 30, 2024[61] - Total liabilities increased slightly to RMB 334,197 thousand as of September 30, 2024, from RMB 329,883 thousand as of December 31, 2023[63] - Net cash used in investing activities was RMB 845,722 thousand for the nine months ended September 30, 2024[67] - The company repurchased ordinary shares worth RMB 5,110 thousand during the nine months ended September 30, 2024[65] - Total assets for the mobile game segment as of September 30, 2024, were RMB 534,812 thousand, while Web3-related business assets stood at RMB 1,633,657 thousand[79] - Non-current assets in Mainland China increased to RMB 77,499 thousand as of September 30, 2024, from RMB 35,024 thousand as of December 31, 2023[79] - Trade receivables: RMB 25,406,000 as of September 30, 2024 (2023: RMB 29,369,000)[130] - Accounts receivable aged 0-30 days decreased to RMB 24,734 thousand as of September 30, 2024, from RMB 25,677 thousand as of December 31, 2023[134] - Accounts receivable aged 31-60 days and 61-90 days decreased to RMB 234 thousand and RMB 142 thousand respectively as of September 30, 2024, from RMB 2,975 thousand and RMB 448 thousand as of December 31, 2023[134] - Accounts receivable aged 365 days and above decreased to RMB 25,406 thousand as of September 30, 2024, from RMB 29,369 thousand as of December 31, 2023[134] - Trade payables aged 0-30 days increased to RMB 837 thousand as of September 30, 2024, from RMB 659 thousand as of December 31, 2023[134] - The company repurchased 3,445,000 shares for a total amount of RMB 5,110,000 at an average price of HKD 1.63 per share as of September 30, 2024[138] - The company's issued and fully paid ordinary shares remained at 709,576,301 as of September 30, 2024, unchanged from December 31, 2023[137] - The 2024 Share Option Plan was adopted on April 19, 2024, with a term of 10 years from the date of grant[141] - The number of outstanding share options decreased to 4,872,429 as of September 30, 2024, from 5,022,429 as of September 30, 2023[142] - The 2024 Restricted Share Unit Plan was adopted on March 28, 2024, with a term of 8 years from the date of adoption[146] - The company granted 5,650,000 restricted share units (RSUs) to employees on August 27, 2021, with a fair value of HKD 0.445 per share[147] - On April 15, 2022, the company granted 15,000,000 RSUs to employees, with a fair value of HKD 0.465 per share[148] - On June 19, 2024, the company granted 1,900,000 RSUs to employees, with a fair value of HKD 1.89 per share[150] - As of September 30, 2024, the total number of outstanding RSUs was 10,235,000, a decrease from 23,488,089 at the beginning of the year[151] - 10,848,923 RSUs were vested and converted during the period, with a weighted average share price of HKD 1.17 per share[151] Expenses and Costs - Sales and marketing expenses decreased by 26.7% to approximately RMB 10.0 million for the three months ended September 30, 2024, compared to RMB 13.6 million in the same period last year[23] - Dividend income from investments measured at fair value through profit or loss for the three months ending September 30, 2024, was RMB 4,064 thousand, a significant increase from RMB 1,006 thousand in the same period in 2023[97] - Foreign exchange loss for the three months ending September 30, 2024, was RMB 3,220 thousand, compared to a gain of RMB 303 thousand in the same period in 2023[97] - Interest income for the three months ending September 30, 2024, was RMB 1,818 thousand, a decrease from RMB 15,671 thousand in the same period in 2023[99] - Lease interest expense for the three months ending September 30, 2024, was RMB 355 thousand, up from RMB 318 thousand in the same period in 2023[100] - Current income tax expense for the three months ending September 30, 2024, was RMB 5,258 thousand, compared to RMB 2,988 thousand in the same period in 2023[101] - Deferred tax benefit for the three months ending September 30, 2024, was RMB 26,461 thousand, compared to a benefit of RMB 34 thousand in the same period in 2023[101] - The actual income tax rate for Boyaa Network Game Development (Shenzhen) Co., Ltd. for the nine months ending September 30, 2024, was 15%, consistent with the same period in 2023[103] - Hong Kong profits tax provision: The first HKD 2,000,000 of taxable profits are provisioned at 8.25%, and any amount exceeding HKD 2,000,000 is provisioned at 16.5% for the nine months ended September 30, 2024 and 2023[110] - Singapore profits tax provision: All taxable profits are provisioned at 17% for the nine months ended September 30, 2024 and 2023[111] - Depreciation included in employee costs: RMB 244,000, and included in other administrative expenses: RMB 927,000[