FEIYU(HK:01022)2019-09-17 08:52Financial Performance - For the six months ended June 30, 2019, the total revenue was approximately RMB 41.7 million, a decrease of 9.0% year-on-year[30]. - The net loss attributable to the owners of the parent company was approximately RMB 33.4 million, an improvement of 10.7% compared to RMB 37.4 million in the same period last year[30]. - The adjusted net loss attributable to the owners of the parent company was approximately RMB 32.3 million, compared to RMB 33.2 million in the previous year[30]. - The gross profit for the period was RMB 24.6 million, representing a significant increase of 33.9% from RMB 18.4 million in the previous year[24]. - Revenue for the six months ended June 30, 2019, was approximately RMB 41.7 million, a decrease of 9.0% compared to RMB 45.8 million for the same period in 2018[54]. - The company reported a net loss of RMB 37.8 million for the six months ended June 30, 2019, compared to a net loss of RMB 42.7 million in the same period of 2018, reflecting an improvement of 11.4%[54]. Assets and Equity - The total assets as of June 30, 2019, amounted to RMB 721.1 million, a decrease of 7.2% from RMB 776.6 million as of December 31, 2018[25]. - The total equity was RMB 552.9 million, down 4.3% from RMB 578.0 million at the end of the previous year[25]. - Total equity as of June 30, 2019, was approximately RMB 553.0 million, down from RMB 578.0 million as of December 31, 2018, mainly due to a loss of RMB 37.8 million recognized during the period[76]. Liabilities - Non-current liabilities increased by 83.8% to RMB 40.4 million, compared to RMB 22.0 million in the previous year[25]. - The group had total bank loans of approximately RMB 91.3 million as of June 30, 2019, slightly down from RMB 93.0 million as of December 31, 2018[80]. - The group recorded a net current asset value of approximately RMB 102.8 million, a decrease of 4.6% from RMB 107.7 million as of December 31, 2018[76]. Revenue Streams - Revenue from game operations decreased from 86.4% to 72.0% of total revenue, primarily due to a decline in mobile game contributions[42]. - Online game distribution revenue increased from approximately 1.2% to 7.2% of total revenue, attributed to new game launches by the Shenzhen distribution team[42]. - Advertising revenue rose from about 4.8% to 11.0% of total revenue, driven by a partnership with "Today's Headlines" that boosted advertising income for the "Defend the Carrot" series[42]. User Engagement - As of June 30, 2019, the total registered users for RPG mobile and online games reached approximately 226.5 million, with online games accounting for about 171.9 million and mobile games for about 54.6 million[46]. - The average Monthly Active Users (MAU) for RPG mobile games was approximately 340,000, while for online games it was about 200,000, reflecting a decrease in user engagement[49]. - The average Monthly Paying Users (MPU) for online games decreased from 11,000 to 9,000, indicating a shift in focus from online to mobile games since 2013[49]. Game Development and Launches - The company launched four new games in the first half of 2019, including "Tianxia Chang'an" and "Kung Fu Big Soybean," targeting various user demographics[32]. - The company decided to extend the development time for several new games to enhance quality, leading to delays in their launch[30]. - The company plans to continue focusing on high-quality game development and user engagement, leveraging its established intellectual property[36]. Marketing and Promotions - The company plans to use approximately RMB 14.4 million for marketing and promotion of a new game launched in Q3 2019[154]. - The company plans to continue launching various in-game promotions and updates to enhance user engagement and retention[52]. Shareholder Information - The largest shareholder, YAO Holdings Limited, holds 481,399,000 shares, which is approximately 31.1% of the total shares[158]. - The second-largest shareholder, Chen Jianyu, holds 256,739,000 shares, accounting for 16.60% of the total shares[157]. - The company has a total of 8,485,500 shares directly held by Mr. Yao, which is approximately 0.55% of the total shares[158]. Share Options and Plans - The company granted a total of 105,570,000 share options under the pre-IPO share option plan, representing approximately 6.82% of the issued shares as of June 30, 2019[166]. - The company has a share option plan that is subject to the regulations of Chapter 17 of the Listing Rules[175]. - The total number of options exercised as of June 30, 2019, was 30,920,000, with a remaining balance of 28,595,000 options[170]. Future Outlook - The company is optimistic about the trademark services market in China and Easy Play's future performance[123]. - The group believes Future Capital is well-capitalized and managed by an experienced team, with optimistic future business prospects[134]. - The group holds a positive outlook on Standard Chartered's future performance, citing stability and progress in several areas[106].