7ROAD(HK:00797)2020-09-17 10:48Financial Performance - For the six months ended June 30, 2020, the company recorded total revenue of approximately RMB 198.3 million, an increase of about 91.6% compared to RMB 103.5 million for the same period in 2019[7]. - The profit attributable to the owners of the company for the six months ended June 30, 2020, was approximately RMB 32.4 million, representing an increase of about 226.5% compared to a loss of RMB 25.6 million for the same period in 2019[8]. - The adjusted net profit attributable to the owners of the company for the six months ended June 30, 2020, was approximately RMB 37.4 million, a significant increase of about 3,154.9% compared to a loss of RMB 1.2 million for the same period in 2019[8]. - The company's gross profit and gross margin for the six months ended June 30, 2020, were RMB 154.6 million and 78.0%, respectively[9]. - The total revenue for the six months ended June 30, 2020, was approximately RMB 198.3 million, an increase of about 91.6% compared to RMB 103.5 million for the same period in 2019[19]. - Gross profit for the six months ended June 30, 2020, was approximately RMB 154.6 million, an increase of about 81.5% compared to RMB 85.2 million in 2019, with a gross margin of 78.0%, down from 82.3%[21]. - The company reported a profit of RMB 32,526,000 for the six months ended June 30, 2020, compared to a loss of RMB 25,590,000 in 2019, marking a significant turnaround[31]. - Adjusted profit for the same period was RMB 37,509,000, up from a loss of RMB 1,223,000 in 2019[31]. - The comprehensive income for the period was RMB 20,446 thousand, compared to a comprehensive loss of RMB 25,521 thousand in the same period of 2019[74]. Market Trends - The global online gaming market is expected to generate revenue of USD 159.3 billion in 2020, with mobile gaming being the largest segment, projected to generate USD 72.2 billion, accounting for 13.3% of the global online gaming market[9]. - The Asia-Pacific online gaming market is expected to grow by approximately 9.9% in 2020, exceeding USD 78.4 billion, representing about 49.0% of the global online gaming market[9]. Strategic Plans - The company plans to continue focusing on high-quality game products and explore diversified revenue sources in the second half of 2020[10]. - The company aims to deepen its domestic market presence while expanding its overseas market operations in the second half of 2020[10]. - The company will continue to update and promote existing games while developing new games to strengthen its domestic market and enhance its global presence[10]. - The company plans to launch multiple mobile games in the second half of 2020, including "Alice's Wardrobe," which received positive user feedback during its August user testing[11]. - The mobile game "Arcadia" is expected to be released in November 2020, while "Dragon Slayer World," a large multiplayer online role-playing game, is set for a September release after a test in August 2020[11]. - The company aims to explore new market opportunities by developing games targeting niche segments, including casual and female-oriented games[11]. - The company is in negotiations for a new acquisition of a well-known game development company, which could enhance its game development capabilities if completed in the second half of 2020[11]. User Engagement - The average monthly active users for web games were approximately 1.2 million, while mobile games had about 1.3 million active users as of June 30, 2020[15]. - The average revenue per paying user for mobile games was RMB 446.1, while for web games it was RMB 392.4 as of June 30, 2020[15]. - The average monthly paying users for the reporting period was reported as a significant metric for assessing user engagement[155]. - The company achieved a notable increase in monthly active users, indicating strong user retention and engagement strategies[155]. Financial Position - Total cash and restricted cash decreased by 46.9% to RMB 132,331,000 as of June 30, 2020, primarily due to payments for the acquisition of Spicy Group and increased project investments[32]. - Total borrowings increased by 23.0% to RMB 54,600,000 as of June 30, 2020, compared to RMB 44,400,000 at the end of 2019[32]. - The company's debt-to-asset ratio improved to 35.7% as of June 30, 2020, down from 42.6% at the end of 2019, attributed to profits generated and payments related to the acquisition[35]. - The total assets as of June 30, 2020, amounted to RMB 1,772,729 thousand, down from RMB 1,941,961 thousand as of December 31, 2019[75]. - Total liabilities as of June 30, 2020, were RMB 633,084 thousand, compared to RMB 605,192 thousand as of December 31, 2019[76]. - The company reported a total equity of RMB 1,140,263 thousand as of June 30, 2020, an increase from RMB 1,114,834 thousand at the end of 2019[76]. Corporate Governance - The company has complied with all applicable codes of corporate governance during the reporting period[64]. - The board of directors is committed to maintaining high corporate governance standards to ensure transparency and accountability[154]. Future Outlook - The company plans to expand its market presence through new product launches and technological advancements in mobile gaming[155]. - Future outlook includes a focus on research and development to enhance gaming experiences and attract more users[155]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[155]. - The financial performance for the first half of 2020 showed a positive trend, with revenue growth compared to the previous period[157]. - The company aims to increase its user base by implementing targeted marketing strategies and promotional campaigns[155]. Risk Management - The financial risk factors include market risk, credit risk, and liquidity risk[89]. - The group has not made any changes to its risk management policies since the fiscal year ended December 31, 2019[89].