BOYAA(HK:00434)2023-09-19 09:00Investment and Fair Value - As of June 30, 2023, the group invested RMB 300 million in Jiaxing Boya, primarily engaged in equity and venture capital investments[4] - The fair value of the investment in Jiaxing Boya as of June 30, 2023, was approximately RMB 7 million, representing less than 5% of total assets[4] - As of June 30, 2023, the total fair value measurement of investments recognized in profit or loss amounted to RMB 162,847 thousand, down from RMB 185,333 thousand on January 1, 2023, reflecting a decrease of approximately 12.1%[94] - The total recognized gains or losses in profit or loss for the period were RMB (23,989) thousand, indicating a loss compared to the previous period[94] - The fair value of investments measured at fair value through profit or loss decreased by RMB 23,989 for the six months ended June 30, 2023[133] - The fair value of equity investments as of June 30, 2023, was RMB 19,988,000, up from RMB 18,074,000 as of December 31, 2022, representing an increase of 10.6%[169] Financial Performance - Total comprehensive income for the period was RMB 31,923 thousand, with a significant increase compared to the previous period[83] - The company reported a net loss of RMB 7,990 thousand for the period, compared to a profit of RMB 23,308 thousand in the previous period[86] - The group reported a net loss of RMB 35,254 for the six months ended June 30, 2023, compared to a loss of RMB 11,226 for the same period in 2022[123] - Revenue from customer contracts for the six months ended June 30, 2023, was RMB 194,285 thousand, an increase of 4.4% from RMB 186,454 thousand in the same period of 2022[112] - Interest income for the six months ended June 30, 2023, was RMB 25,632 thousand, significantly higher than RMB 11,912 thousand for the same period in 2022, representing an increase of approximately 115%[118] - Revenue for the six months ended June 30, 2023, was RMB 194,285 thousand, a 4.2% increase from RMB 186,454 thousand in the same period of 2022[190] - Gross profit for the same period was RMB 129,674 thousand, reflecting a 5.6% increase compared to RMB 122,843 thousand in 2022[190] - Operating profit surged by 63.3% to RMB 38,261 thousand, up from RMB 23,433 thousand year-over-year[190] - Net profit for the period reached RMB 55,580 thousand, marking a significant increase of 138.5% from RMB 23,308 thousand in the previous year[190] - Financial income increased by 118.0% to RMB 25,287 thousand, compared to RMB 11,597 thousand in the same period last year[190] - The company reported a 41.0% reduction in other losses, decreasing from RMB 35,739 thousand to RMB 21,096 thousand[190] - Income tax expenses decreased by 35.9% to RMB 7,424 thousand, compared to RMB 11,578 thousand in the same period of 2022[190] - Non-IFRS adjusted net profit was RMB 57,017 thousand, a 133.1% increase from RMB 24,457 thousand in the previous year[190] Assets and Liabilities - Non-current assets amounted to RMB 252,686 thousand, a decrease of 12.6% from RMB 289,224 thousand as of December 31, 2022[83] - Current assets increased to RMB 1,634,526 thousand, up 9.1% from RMB 1,497,366 thousand as of December 31, 2022[83] - Total assets reached RMB 1,887,212 thousand, reflecting an increase from RMB 1,786,590 thousand[83] - Total equity rose to RMB 1,548,138 thousand, compared to RMB 1,457,284 thousand at the end of 2022, marking a growth of 6.2%[83] - Trade receivables increased to RMB 31,199 thousand, up 30.7% from RMB 23,831 thousand[83] - Cash and cash equivalents decreased to RMB 194,392 thousand, down 33.8% from RMB 293,956 thousand[83] - The total amount of non-current assets related to unlisted investments decreased to RMB 109,035,000 from RMB 134,966,000, a decline of approximately 19.2%[169] Employee and Corporate Governance - The group employed a total of 263 full-time employees in mainland China, with 213 in game development and operations, 39 in game support, and 11 in administrative and senior management roles[5] - The company has established an audit committee in compliance with listing rules, consisting of three independent non-executive directors[79] - The company will continue to review and closely monitor its corporate governance status[38] - The company has adopted a restricted share unit plan to incentivize and retain skilled personnel for future development and expansion[194] Legal and Regulatory Matters - The company is currently involved in legal proceedings regarding frozen cash reserves amounting to approximately 291.7 million RMB and financial products valued at 350 million RMB due to alleged illegal activities by former employees[183] - The total amount executed from the company's frozen bank accounts was approximately 683.2 million RMB[183] - The company has received necessary licenses and approvals for its online gaming operations in China, which remain valid despite the legal issues concerning former employees[185] - The board of directors has maintained frequent discussions regarding the ongoing legal matters and has not identified significant management issues related to the case[186] Share Options and Restricted Share Units - The company has no unexercised options under the post-IPO share option scheme as of June 30, 2023[27] - The company has not granted any restricted share units under the 2021 restricted share unit plan during the six months ended June 30, 2023[29] - The company has a total of 3,382,335 shares related to the 2013 restricted stock unit plan as of June 30, 2023[50] - The 2021 restricted stock unit plan has a remaining duration of 6 years and 2 months as of June 30, 2023[55] - No options granted under the post-IPO option plan have expired as of June 30, 2023[52] - The total number of restricted share units granted to employees as of June 30, 2023, was 23,488,089, an increase from 24,422,089 in the previous year[158] - The number of unexercised stock options as of June 30, 2023, was 5,222,429, unchanged from the previous year[176] - The company has adopted a new restricted share unit plan effective for eight years from July 19, 2021, to attract and retain qualified personnel[178] Taxation - The company is subject to different income tax rates between Boyaa China and Boyaa Shenzhen, which may adversely affect the group's operating performance[15] - The effective tax rate for the company was maintained at 15% for the six months ended June 30, 2023, consistent with the previous year[119] - The group’s income tax expense for the six months ended June 30, 2023, was calculated at a tax rate of 25% on estimated taxable profits[138] - The company’s applicable income tax rate remains at 15% for the six months ended June 30, 2023, consistent with the previous year[160]