BOYAA(00434)2024-03-27 10:36Revenue and Profit Performance - Revenue for the year ended December 31, 2023, was approximately RMB 394.6 million, a 5.1% increase compared to RMB 375.3 million in 2022, driven by online operational activities and game optimization[12] - Revenue for Q4 2023 was approximately RMB 100.3 million, a 6.3% increase compared to RMB 94.3 million in Q4 2022, with mobile game revenue rising 16.9% to RMB 71.8 million[19] - Revenue for 2023 reached RMB 394.582 million, showing a year-over-year increase from RMB 375.266 million in 2022[109] - Revenue for 2023 reached approximately RMB 394.6 million, a year-on-year increase of 5.1%[112] - Q4 2023 revenue was approximately RMB 100.3 million, a year-on-year increase of 6.3% and a quarter-on-quarter increase of 0.2%[112] - Gross profit for Q4 2023 increased by 19.6% to RMB 72.9 million compared to RMB 60.9 million in Q4 2022[20] - Gross profit for 2023 was RMB 271.279 million, up from RMB 245.845 million in 2022[109] - Gross profit margin improved to 68.8% in 2023 from 65.5% in 2022[13] - Net profit attributable to shareholders for Q4 2023 was RMB 32.1 million, a 15.5% increase compared to RMB 27.8 million in Q4 2022[25] - Net profit for 2023 was RMB 117.179 million, compared to RMB 64.200 million in 2022[109] - Profit before tax for 2023 stood at RMB 126.950 million, a significant rise from RMB 85.197 million in 2022[109] - Total comprehensive income for 2023 was RMB 139.744 million, up from RMB 114.517 million in 2022[109] - Unaudited non-IFRS adjusted net profit for 2023 was approximately RMB 118.9 million, a year-on-year increase of 77.2%[113] - Q4 2023 unaudited non-IFRS adjusted net profit was approximately RMB 31.9 million, a year-on-year increase of 11.3%[113] - Excluding non-operating one-time factors, the unaudited non-IFRS adjusted net profit for 2023 increased by 43.4% year-on-year[113] - The company achieved an unaudited non-IFRS adjusted net profit of approximately RMB 118.9 million in 2023, representing a year-on-year increase of 77.2%[129] - The company's unaudited non-IFRS adjusted net profit for 2023 increased by 43.4% year-on-year when excluding non-operating one-time factors such as fair value changes in equity investment partnerships[129] - The company's unaudited non-IFRS adjusted net profit for Q4 2023 increased by 6.0% quarter-on-quarter, primarily due to increased revenue and reduced cost of revenue compared to Q3 2023[136] - The company's unaudited non-IFRS adjusted net profit for 2023 was approximately RMB 118.9 million, compared to RMB 67.1 million in 2022[156] - Profit attributable to the company's owners increased by approximately 82.5% from RMB 64.2 million in 2022 to RMB 117.2 million in 2023[175] Game Revenue and User Metrics - Mobile games accounted for 70.1% of total revenue in 2023, up from 66.6% in 2022, while web games decreased to 29.9% from 33.4%[12] - Total paying players decreased by 4.6% to 206,000, with mobile game paying players down 3.8% to 203,000 and web game paying players down 40.0% to 3,000[73] - Daily active users (DAU) decreased by 4.5% to 1,130,000, with mobile game DAU down 3.4% to 1,053,000 and web game DAU down 17.2% to 77,000[73] - Monthly active users (MAU) decreased by 2.5% to 3,940,000, with mobile game MAU down 2.9% to 3,601,000 and web game MAU up 2.7% to 339,000[73] - ARPPU for Texas Hold'em web games increased by 73.0% to RMB 4,747.7, while mobile game ARPPU increased by 5.3% to RMB 207.2[73] - ARPPU for other card games in mobile games increased by 21.3% to RMB 83.0, while web game ARPPU remained flat at RMB 0.3[73] - The company's monthly active users (MAU) increased by 1.2% from 3.90 million in Q3 2023 to 3.94 million in Q4 2023, while daily active users (DAU) decreased by 4.0% from 1.18 million to 1.13 million during the same period[137] - The company's ARPPU (Average Revenue Per Paying User) for other mobile card games increased in Q4 2023[137] - The company had 67 traditional game products in operation as of December 31, 2023, with 12 language versions available[138] Cryptocurrency and Digital Assets - The company held digital assets worth approximately RMB 78.6 million as of December 31, 2023, including Tether, Ethereum, and Bitcoin[28] - The company was authorized to purchase up to 45 million each allocated for Bitcoin and Ethereum, and up to $10 million for USDT and USDC[79] - The company purchased approximately 1,110 BTC and 14,855 ETH as part of its Web3 strategy, with these holdings showing growth by the reporting date[126] - The company plans to continue expanding its cryptocurrency reserves in 2024 to support its Web3 business layout and transformation strategy[131] - Cryptocurrency market volatility poses a potential risk to the company's business and operational results[104] Financial Position and Investments - Cash and cash equivalents as of December 31, 2023, were RMB 744.3 million, a significant increase from RMB 294.0 million in 2022, with 73.0% denominated in USD[29] - Capital expenditures for 2023 totaled approximately RMB 10.3 million, primarily for building purchases, equipment, and leasehold improvements[33] - The company's investment in Jiaxing Boya Chunlei Equity Investment Partnership was RMB 300.0 million, representing 99.0% of the total capital contribution[32] - The company invested RMB 300.0 million in Jiaxing Boya, with a fair value of RMB 3.3 million as of December 31, 2023, representing less than 5.0% of total assets[61] - The company's indirect wholly-owned subsidiaries invested RMB 30.0 million and RMB 50.0 million in structured deposits, and RMB 50.0 million in wealth management products with licensed banks in China[83] - The company held time deposits of approximately RMB 732.4 million as of December 31, 2023, with an actual interest rate of 4.29% for the year[165] - 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, compared to RMB 18.1 million as of December 31, 2022[166] - The company's asset-liability ratio was 17.1% as of December 31, 2023, down from 18.4% at the end of 2022[163] - The company had no short-term or long-term bank borrowings as of December 31, 2023[57] - The company had no significant commitments as of December 31, 2023[58] - The company sold all its shares in Qudian Inc. (NYSE: QD) in the open market during 2023, with proceeds used for general working capital[54] - The company's financial income net in 2023 was approximately RMB 55.6 million, up from RMB 29.1 million in 2022, primarily due to increased interest income[153] - Net finance income for the three months ended December 31, 2023, was approximately RMB 15.0 million, compared to RMB 9.5 million in the same period of 2022, mainly due to increased interest income[181] Expenses and Costs - Sales and marketing expenses increased by 36.3% from RMB 35.4 million in 2022 to RMB 48.3 million in 2023, accounting for 12.2% of revenue compared to 9.4% in 2022[38] - Cost of revenue decreased by 18.0% from RMB 33.4 million in Q4 2022 to RMB 27.4 million in Q4 2023, primarily due to reduced commission expenses[44] - Total employee costs for 2023 were RMB 88.1 million, accounting for 32.6% of total expenses[64] - Administrative expenses for the year ended December 31, 2023, were approximately RMB 98.9 million, remaining flat compared to RMB 98.6 million in the same period of 2022[172] - Administrative expenses for the three months ended December 31, 2023, increased by 6.7% to RMB 30.7 million, compared to RMB 28.8 million in the same period of 2022[180] - The company's sales and marketing expenses increased by 10.2% year-over-year to RMB 11.1 million in the three months ended December 31, 2023[159] - The company recorded a net other loss of approximately RMB 51.2 million in 2023, a decrease from RMB 55.1 million in 2022, primarily due to reduced fair value losses on investments[173] - The company's share of losses from associates was approximately RMB 1.6 million in 2023, compared to RMB 0.6 million in 2022[174] Dividend and Shareholder Returns - The company proposed a final dividend of RMB 0.0335 per ordinary share, with a payout ratio of 20% based on the unaudited non-IFRS adjusted net profit for 2023[115] - The company adopted a new dividend policy, committing to distribute at least 20% of annual operating net profit and at least 5% of gains from crypto asset investments over the next five years[115] - The company declared a final dividend of RMB 0.0335 per ordinary share for 2023, with a payout ratio of 20% based on unaudited non-IFRS adjusted net profit[130] - The company plans to allocate at least 20% of its annual operating net profit to shareholders and distribute at least 5% of the appreciation gains from crypto assets annually over the next five years[130] Strategic Focus and Future Plans - The company is actively transforming its strategy to focus on Web3, aiming to become a leading Web3-listed company[118] - The company plans to expand its overseas market for chess and card games, including Web3 games[118] - The company continues to focus on the development and innovation of game products, particularly Web3 games[118] - In 2023, the company focused on Web3 game product R&D, game innovation, and user experience optimization, while also expanding its cryptocurrency reserves (including Bitcoin and Ethereum)[139] - The company has no plans for major acquisitions, investments, or capital assets as of the report date, but will conduct feasibility studies for potential future opportunities[88] Risks and Regulatory Environment - The company faces risks related to its reliance on social media platforms, app stores, and third-party payment providers for revenue generation[104] - Regulatory uncertainties in China regarding foreign investment laws could impact the company's operations[105] - The company's contractual arrangements in China may face severe consequences, including the abolition of agreements and loss of rights in the Variable Interest Entity (VIE), if found non-compliant with Chinese laws and regulations[193] - The company has implemented measures to mitigate risks related to contractual arrangements, including requiring directors with potential conflicts of interest to abstain from voting on relevant resolutions[197] - The company's actual income tax rate for Boya China is 15% for the year ending December 31, 2023, due to its renewed status as a "High-Tech Enterprise"[199] - Boya Shenzhen's actual income tax rate is 25% for the year ending December 31, 2023, as it has not renewed its "High-Tech Enterprise" status, but no income tax provision was made due to no taxable profits[199] Employee and Shareholder Information - The company had 233 full-time employees, with 193 in game development and operations, 29 in game support, and 11 in administration and senior management[89] - As of December 31, 2023, the company had 4,872,429 share options and 19,588,089 restricted share units outstanding, granted to 248 senior management and employees[64] - The company has no significant contingent liabilities, guarantees, or litigation as of December 31, 2023[86]