FEIYU(HK:01022)2021-04-22 09:06Financial Performance - Total revenue for 2020 was RMB 117,004,000, an increase from RMB 112,851,000 in 2019, representing a growth of approximately 1.02%[22] - Gross profit for 2020 was RMB 82,419,000, compared to RMB 78,070,000 in 2019, indicating a growth of about 5.99%[22] - The company reported a pre-tax loss of RMB (16,900,000) for 2020, an improvement from a loss of RMB (87,311,000) in 2019[22] - The company reported a net loss attributable to equity holders of the parent of RMB (21,460,000) for 2020, compared to a loss of RMB (80,342,000) in 2019, showing a significant improvement[22] - Total revenue for the year 2020 increased by 3.7% year-on-year to RMB 117.0 million, driven primarily by increased game operation revenue[30] - Net loss for 2020 significantly reduced by 79.6% to RMB 18.1 million compared to RMB 88.7 million in 2019[30] - The company's revenue for the year ended December 31, 2020, was approximately RMB 117.0 million, a 3.7% increase from RMB 112.9 million in 2019[58] - The total loss for the year was approximately RMB 18.1 million, a reduction of about 79.6% compared to RMB 88.7 million in the previous year[74] Assets and Liabilities - Total assets as of December 31, 2020, were RMB 634,063,000, down from RMB 730,730,000 in 2019, reflecting a decrease of approximately 13.24%[24] - Total equity as of December 31, 2020, was RMB 489,166,000, a decrease from RMB 509,735,000 in 2019, representing a decline of about 4.02%[24] - Current assets for 2020 were RMB 203,141,000, down from RMB 243,276,000 in 2019, indicating a decrease of approximately 16.51%[24] - Non-current assets were RMB 430,922,000 in 2020, down from RMB 487,454,000 in 2019, reflecting a decrease of about 11.59%[24] - The total liabilities as of December 31, 2020, were RMB 144,897,000, a decrease from RMB 220,995,000 in 2019, indicating a reduction of approximately 34.43%[24] Game Development and Revenue - The game "Neon Abyss" launched in July 2020 achieved top ten sales on Steam in its first week, while "Kaji Adventure Team" ranked first in the Apple China App Store free download chart[30] - The "Defend the Carrot" game series contributed to a 60.3% year-on-year increase in game operation revenue, reaching RMB 11.3 million[27] - The company reported a total revenue contribution from game operations of approximately RMB 657.57 million, an increase of about 11.0% compared to RMB 592.26 million in 2019[42] - The mobile game "Neon Abyss" launched in July 2020 significantly boosted revenue from PC and console games[42] - The company plans to launch sequels for popular games "Defend the Carrot 4" and "God's Path 3" in 2021, with cumulative registered users of 593.8 million and 159.0 million respectively[36] - The company is focusing on developing two major game types: casual multiplayer online battle arena (MOBA) and first-person shooter (FPS), with a MOBA game expected to launch in 2021[36] Advertising and User Engagement - Advertising revenue grew by 57.3% year-on-year to RMB 16.1 million[27] - The Average Revenue Per Paying User (ARPPU) for online RPG games increased from RMB 142.6 in 2019 to RMB 147.0 in 2020, driven by increased spending from loyal players[51] - Casual games' ARPPU rose significantly from RMB 5.9 in 2019 to RMB 9.9 in 2020, attributed to frequent updates and new features in the "Carrot Defense" series[51] - The company continues to implement various in-game promotions and updates to enhance user engagement and retention[51] Research and Development - The company established a new R&D team in Fuzhou at the end of 2020 to develop new game themes[27] - The company plans to focus on developing high-quality games, particularly in the MOBA and FPS genres, leveraging existing intellectual property[27] - Research and development costs decreased by 19.4% to RMB 56.8 million, reflecting the company's focus on cost management[54] - R&D costs decreased by approximately 19.4% to about RMB 56.8 million, attributed to reduced outsourcing for game development[69] Corporate Strategy and Future Outlook - The company aims to enhance its product offerings and expand its market presence in the upcoming fiscal year[22] - The company has established an overseas game distribution and operation team to expand international business and mitigate the impact of regulatory changes in mainland China[34] - The company aims to strengthen its intellectual property licensing activities with the upcoming launch of "Defend the Carrot 4" and explore collaborations with social media platforms and merchandise producers[37] - The company has maintained a limited but high-quality game product portfolio, focusing resources on developing sequels to existing popular titles[41] - The company is committed to sustainable operations, implementing green office practices and waste management strategies, including the "3R" strategy: Reduce, Reuse, and Recycle[187] Compliance and Corporate Social Responsibility - The company has complied with all relevant laws and regulations impacting its business operations, including those related to online gaming management and copyright[191] - The company is dedicated to corporate social responsibility, participating in community service and supporting educational activities[190] Investment and Financial Management - The company has no recorded significant contingent liabilities or guarantees as of December 31, 2020[172] - The company has not adopted any hedging policies to mitigate interest rate risks, as it does not anticipate significant fluctuations in interest rates[180] - The company plans to allocate a total of approximately $463.2 million for various initiatives, including expanding and improving the game portfolio (40% - $185.3 million), marketing and promotional activities (20% - $92.6 million), and establishing international operations in selected overseas markets (15% - $69.5 million)[185]