创梦天地(01119) - 2021 - 中期财报

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 1,367,072 thousand, a decrease of 14.1% compared to RMB 1,591,643 thousand in 2020[10] - Gross profit for the same period was RMB 518,770 thousand, down 24.2% from RMB 684,793 thousand in 2020[10] - The company reported a loss before tax of RMB 80,842 thousand, a significant decline from a profit of RMB 167,324 thousand in the previous year, representing a change of 148.3%[10] - Adjusted profit for the period was RMB 13,985 thousand, a decrease of 93.5% compared to RMB 215,378 thousand in 2020[10] - Revenue decreased by 14.1% year-on-year, with a net loss of RMB 68.0 million for the six months ended June 30, 2021, compared to a net profit of RMB 147.9 million in the same period of 2020[13] - The company reported a net loss of RMB 68.0 million for the six months ended June 30, 2021, compared to a net profit of RMB 147.9 million for the same period in 2020[36] - The company reported a total comprehensive loss of RMB 77,178,000 for the six months ended June 30, 2021, compared to a total comprehensive income of RMB 150,711,000 for the same period in 2020[109] - Basic loss per share for the period was RMB (0.06), compared to earnings of RMB 0.11 per share in the same period last year[100] - The company reported a loss attributable to equity holders of RMB 73,495,000 for the six months ended June 30, 2021, compared to a profit of RMB 136,986,000 for the same period in 2020, representing a significant decline[157] User Metrics - Average monthly active users decreased from 142.0 million to 138.0 million, while average monthly paying users fell from 6.2 million to 5.8 million[13] - Average revenue per paying user declined from RMB 35.5 to RMB 33.4, attributed to a lower proportion of heavy game revenue[27] Game Development and Initiatives - The company has launched several self-developed games, including "Magic Baby," "Global Action," and "Honor All-Stars," aiming to strengthen its position in the global gaming market[12] - The company launched its self-developed competitive mobile game "Animal Star" in May 2021, gaining 3.5 million new users within three months[14] - The company plans to launch three self-developed games in the second half of 2021, including two match-3 games and a competitive game "Eternal Reincarnation" expected to launch in 2022[18] - The company focuses on fine-tuned operations and has built a large user base, aiming to enhance user value through a 24-hour entertainment ecosystem[12] Financial Position and Assets - Cash and cash equivalents decreased by 47.4% from approximately RMB 735.6 million as of December 31, 2020, to approximately RMB 386.8 million as of June 30, 2021[42] - Total assets as of June 30, 2021, were RMB 6,402,802 thousand, down from RMB 6,752,841 thousand as of December 31, 2020[101] - The company's equity attributable to owners was RMB 3,672,058 thousand, a slight decrease from RMB 3,715,841 thousand at the end of 2020[102] - The company's total liabilities decreased to RMB 2,730,744 thousand from RMB 3,037,000 thousand at the end of 2020, indicating a reduction of 10.1%[102] Research and Development - R&D expenses increased by 45.4% year-on-year for the six months ended June 30, 2021, focusing on enhancing game development capabilities and offline entertainment business[13] - Research and development expenses increased to RMB 163,599 thousand, a rise of 45.5% from RMB 112,489 thousand in the previous year[99] Marketing and Sales - Selling and marketing expenses rose by 8.3% to RMB 208.1 million, increasing as a percentage of revenue from 12.1% to 15.2%[30] - Revenue from SaaS and other related services increased by 36.4% to RMB 30.7 million, while revenue from offline entertainment grew by 413.0% to RMB 11.8 million[28] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and accountability[65] - The audit committee, primarily composed of independent non-executive directors, reviewed the financial reporting procedures and internal controls for the six months ended June 30, 2021[69] Shareholder Information - As of June 30, 2021, the company had a total of 1,265,517,790 shares issued, with key shareholders holding significant stakes, including Mr. Chen with 19.25%[74] - The company repurchased a total of 1,601,200 shares in January and April 2021, at a total cost of HKD 6,140,717.64, reflecting confidence in its development prospects[71] Impairment and Financial Losses - The impairment loss on intangible assets amounted to RMB 36,542,000 due to the expiration or termination of contracts for certain games, with no intention to extend agreements with developers[162] - The goodwill impairment loss totaled RMB 916,011,000 for the years ended December 31, 2019, and December 31, 2020, based on the performance of Tianjin Huohun, which did not meet the profit target of RMB 300,000,000[164] Cash Flow and Financing Activities - Cash flow from operating activities was negative at RMB 8,007,000 for the first half of 2021, a significant decline from RMB 50,412,000 in the same period of 2020[112] - The company incurred a net cash outflow from investing activities of RMB 139,627,000 in the first half of 2021, compared to RMB 376,150,000 in the same period of 2020[112] - Financing activities resulted in a net cash outflow of RMB 195,939,000 for the first half of 2021, contrasting with a net cash inflow of RMB 467,275,000 in the same period of 2020[112]