BOYAA(00434)2025-04-09 04:22Financial Performance - The company recorded total revenue of approximately RMB 4.569 billion for the fiscal year 2024, representing an increase of about 15.8% compared to the same period in 2023[9]. - The adjusted net profit for the fiscal year 2024 was approximately RMB 8.863 billion, a significant increase of about 645.2% year-on-year, primarily due to the appreciation of cryptocurrency assets and increased revenue[9]. - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 456.9 million, a year-on-year increase of about 15.8% compared to RMB 394.6 million in 2023[18]. - The company achieved a net profit of approximately RMB 886.3 million for the fiscal year 2024, representing a significant year-on-year increase of about 645.2% from RMB 117.2 million in 2023[19]. - The company's gross profit increased by approximately 22.4% from RMB 271.3 million for the year ending December 31, 2023, to approximately RMB 332.1 million for the year ending December 31, 2024, primarily due to higher digital asset appreciation income[33]. - The gross margin for the year ending December 31, 2024, is approximately 72.7%, compared to 68.8% for the year ending December 31, 2023[33]. - The company's adjusted net profit for Q4 2024 was approximately RMB 670.0 million, a year-on-year increase of about 2,002.6% compared to Q4 2023[19]. - The company recorded a revenue of approximately RMB 138.7 million in Q4 2024, a year-on-year increase of about 38.3% compared to Q4 2023[18]. Digital Assets and Cryptocurrency - The company held approximately 3,351 Bitcoins with an average cost of about 1,661 per Ether as of the report date[8]. - The company achieved a fair value gain of approximately RMB 860 million from digital assets during the fiscal year 2024[9]. - The company aims to expand its Bitcoin reserves and remains optimistic about the long-term value of Bitcoin, considering financing options such as share placements and bond issuance[13]. - The company plans to continue expanding its Bitcoin reserves, reflecting a long-term optimistic view on the cryptocurrency market[17]. - The company received shareholder approval for an additional USD 100 million cryptocurrency purchase authorization, totaling USD 200 million[23]. - As of December 31, 2024, the company held approximately 3,274 Bitcoins at an average cost of USD 57,930 per coin and 298 Ether at an average cost of USD 1,676 per coin[23]. - The fair value of digital assets as of December 31, 2024, is approximately RMB 2,360 million, a significant increase from RMB 78.6 million as of December 31, 2023[60]. - The company recorded a fair value gain of approximately RMB 864.7 million for digital assets in the fiscal year ending December 31, 2024, compared to a gain of RMB 0.9 million in the previous year[60]. Business Strategy and Operations - The company plans to continue its focus on the traditional online gaming business while increasing efforts in the development and investment of Web3 gaming products and related infrastructure[11]. - The company is actively investing and incubating projects in the Web3 sector, aiming to innovate and create industry-leading Web3 gaming products[17]. - The company emphasizes compliance with legal regulations in different jurisdictions while striving to build a leading Web3 gaming company[13]. - The company will continue to enhance user experience and explore operational models for Web3 gaming products, focusing on high-quality game product incubation[11]. - The company is committed to developing and operating online card games and advancing Web3 gaming, aiming to position itself as a leading Web3 listed company[101]. - The company is focused on expanding its game distribution platform and increasing penetration in existing markets while exploring new domestic and international markets[101]. User Engagement and Market Performance - The company maintained a stable number of paying players at approximately 0.20 million in Q4 2024, while daily active users increased by 2.8% to about 1.20 million[20]. - The number of paying players decreased to 201,000 in December 2024 from 206,000 in December 2023, representing a decline of 2.4%[89]. - Daily active users increased to 1,201,000 in December 2024, up 6.3% from 1,130,000 in December 2023[89]. - Monthly active users rose to 4,151,000 in December 2024, reflecting a growth of 5.4% compared to 3,940,000 in December 2023[89]. - The company reported significant year-on-year growth in online gaming revenue in the Middle East region[21]. Expenses and Financial Management - Sales and marketing expenses decreased by approximately 15.9% from RMB 48.3 million for the year ending December 31, 2023, to approximately RMB 40.6 million for the year ending December 31, 2024, representing a reduction in the expense ratio from 12.2% to 8.9%[34]. - Administrative expenses increased by approximately 5.8% from RMB 98.9 million for the year ending December 31, 2023, to approximately RMB 104.6 million for the year ending December 31, 2024, mainly due to increased fees related to digital asset purchases and share-based compensation[35]. - The income tax expense for the year ending December 31, 2024, was approximately RMB 159.7 million, a significant increase from RMB 9.8 million for the year ending December 31, 2023, mainly due to the substantial increase in the fair value of digital assets[39]. Shareholder Returns and Dividends - The board proposed a final dividend of approximately HKD 75,596,000, equating to about HKD 0.1064 per ordinary share, which includes 20% of the operating net profit and 5% of the fair value increase of digital assets[10]. - The board proposed a final dividend of HKD 0.1064 per ordinary share for the year ending December 31, 2024, which is an increase from HKD 0.0372 per share for the previous year[112]. - The final dividend for 2024 represents 20% of the group's operating profit, along with 5% of the fair value increase of digital assets and 5% of capital gains[112]. - The revised dividend policy states that the company will pay dividends of no less than 20% of operating profit annually over the next four years[113]. Compliance and Risk Management - The company emphasizes compliance with legal regulations in different jurisdictions while striving to build a leading Web3 gaming company[13]. - The company has established a dedicated virtual asset management and risk control department to oversee cryptocurrency trading and management policies[100]. - The company has complied with all relevant Chinese laws and regulations, obtaining all necessary licenses and approvals for its operations in China[102]. - The company is closely monitoring the evolving regulatory environment in China and has engaged external legal advisors to ensure compliance with contractual arrangements[101]. - The interpretation of laws and regulations related to contractual arrangements in China remains uncertain, which could lead to significant compliance costs for the company[96]. Employee and Management Structure - As of December 31, 2024, the group has a total of 222 employees, with 174 in game development and operations, 36 in game support, and 12 in administrative and senior management roles[106]. - The company’s executive director, Mr. Dai Zhikang, has extensive experience in blockchain and Web3 technology, contributing to strategic planning and management[80]. - Ms. Tao Ying, an executive director, has over 13 years of management experience and has been with the company for more than 11 years[81]. - Independent non-executive director Mr. Zhang Yilin has served on various boards and has a strong background in finance and accounting[82]. - Mr. Cai Hanqiang, another independent non-executive director, is a recognized expert in blockchain law and has provided legal advice for over 30 blockchain financing projects[83]. Shareholder Structure and Governance - The company had issued 710,183,730 shares as of December 31, 2024[185]. - Major shareholders include Mr. Zhang with 255,628,474 shares (35.99%) and Cantrust (Far East) Limited with 282,737,474 shares (39.81%) in trust[181]. - The company has no significant transactions or contracts with its controlling shareholders or related entities during the reporting period[178]. - The company’s board includes Mr. Dai as Chairman and Executive Director, and Ms. Tao as Executive Director and Acting CEO[176].