FRIENDTIMES-友谊时光(06820) - 2024 - 年度财报

Financial Performance - The company reported a revenue of $500 million for the fiscal year 2023, representing a 20% increase compared to the previous year[1]. - Total revenue for 2023 was RMB 1,056,033 thousand, a decrease of 30.8% compared to 2022[11]. - Gross profit for 2023 was RMB 702,405 thousand, down 32.7% from RMB 1,044,114 thousand in 2022[11]. - The company reported a net loss of RMB 138,120 thousand for 2023, compared to a profit of RMB 25,111 thousand in 2022[11]. - The total revenue for the year ended December 31, 2024, was approximately RMB 1,162.8 million, representing a year-on-year growth of about 10.1%[20]. - The net loss for the year was approximately RMB 48.9 million, narrowing by about 64.6% compared to the previous year[20]. - Adjusted net loss for the year was approximately RMB 42.8 million, narrowing by about 67.8% year-on-year[20]. - Game revenue accounted for 99.9% of total revenue in 2024, amounting to RMB 1,162.1 million, which is a 10.1% increase from RMB 1,055.4 million in 2023[54]. - Gross profit for the year ended December 31, 2024, was RMB 813.5 million, a 15.8% increase from RMB 702.4 million in 2023, with a gross margin of 70.0%, up 3.5 percentage points from 66.5%[58]. User Growth and Market Expansion - User data showed a growth of 1 million active users, reaching a total of 10 million active users by the end of Q4 2023[1]. - Market expansion plans include entering three new international markets by Q3 2024, aiming for a 15% increase in user base[1]. - The company aims to deepen its market presence in both female-oriented and male-oriented gaming segments, targeting diverse user groups[13]. - Revenue from mainland China reached RMB 897.5 million, accounting for 77.2% of total game revenue, up from 68.3% in 2023, representing a 24.6% year-on-year increase[55]. Product Development and Innovation - New product launches included two major game titles, which are projected to contribute an additional$ 50 million in revenue in 2024[1]. - The company plans to launch multiple new games in 2024, including "墨劍江湖" and several lightweight games, to expand its product matrix[13]. - The launch of "Floating Life Memories" in January 2024 and "Ink Sword Jianghu" in July 2024 contributed significantly to revenue growth, with a sequential revenue increase of approximately 20.7% in the first half and 21.0% in the second half of 2024[20]. - The company is focusing on integrating AI technology across its development, publishing, and operations processes to enhance efficiency and user experience[14]. - The company is focusing on the development of an AI productivity engine to automate various aspects of game production, significantly reducing labor costs and production cycles[44]. Financial Strategy and Shareholder Value - The board approved a share buyback program worth $20 million to enhance shareholder value[1]. - The company has adopted a dividend policy, considering factors such as operating performance, cash flow, and future prospects when determining dividend levels[141]. - The board does not recommend the payment of dividends for the year ending December 31, 2024, consistent with the previous year[164]. Corporate Governance and Management - The company has a strong management team with over 20 years of experience in the gaming industry, including key figures like Mr. Sun Bo, who is the Executive Director and Vice President[92]. - The company has established a strong governance structure with independent directors responsible for monitoring the board and providing independent advice[96]. - The board consists of 6 members, including 3 executive directors and 3 independent non-executive directors[112]. - The company has established a risk management and internal control system to manage risks associated with achieving business objectives, ensuring reasonable assurance against significant misstatements or losses[144]. Corporate Social Responsibility - The company has strengthened its commitment to corporate social responsibility, ensuring user data protection and actively participating in educational support initiatives in remote areas[17]. - The company has implemented environmental protection measures and encourages employees to conserve resources[169]. - The board is committed to integrating environmental, social, and governance (ESG) principles into business operations, overseeing related risks and opportunities[147]. Strategic Focus and Future Outlook - The company continues to focus on a "premium, diversified, and global" strategy, enhancing user engagement through frequent updates and localized content[21]. - The company aims to deepen its strategic layout in the coming year, focusing on innovation, technology integration, and industry ecosystem collaboration[17]. - The company plans to continue its global development strategy, focusing on regional depth and category breakthroughs in game offerings[51].