Financial Performance - Total revenue for the first half of 2020 amounted to RMB973.2 million, representing a decrease of 18.7% from RMB1,197.6 million for the same period in 2019[18]. - Gross profit decreased by 26.4% on a period-on-period basis to RMB125.9 million[18]. - Operating profit decreased by 20.4% on a period-on-period basis to RMB75.1 million[18]. - Profit after tax decreased by 27.9% on a period-on-period basis to RMB54.2 million[18]. - Revenues from mobile advertising amounted to RMB932.9 million, representing a period-on-period decrease of 18.2%[19]. - Revenues from online-video distribution amounted to RMB30.0 million[19]. - Revenues from game co-publishing amounted to RMB10.2 million[19]. - Mobile advertising revenue for the first half of 2020 was RMB932.9 million, down 18.2% year-on-year[22]. - Revenue from online-video distribution services was RMB30.0 million, down 15.0% from RMB35.3 million in the first half of 2019[55]. - Game co-publishing revenue decreased from RMB21.3 million in the first half of 2019 to RMB10.2 million in the first half of 2020[57]. - Adjusted EBITDA for the first half of 2020 was RMB93.4 million, representing a decrease of 24.7% from RMB124.1 million in the same period of 2019[38]. - Profit for the period was RMB54.2 million, down 27.9% from RMB75.2 million in the first half of 2019[38]. - Adjusted net profit for the six months ended 30 June 2020 was RMB64.5 million, compared to RMB96.6 million for the same period in 2019, a decline of approximately 33.2%[89]. Cost and Expenses - Research and development costs decreased by 6.1% to RMB23.7 million from RMB25.2 million in the previous year[38]. - Selling and distribution expenses decreased by 22.2% to RMB7.6 million from RMB9.8 million in the same period of 2019[38]. - Administrative expenses decreased by 17.5% from RMB25.0 million for the six months ended June 30, 2019, to RMB20.7 million for the six months ended June 30, 2020[68]. - Finance costs decreased from RMB6.9 million for the six months ended 30 June 2019 to RMB5.4 million for the six months ended 30 June 2020, a reduction of approximately 21.7%[73]. - Income tax expense increased by 23.4% from RMB12.3 million for the six months ended 30 June 2019 to RMB15.1 million for the six months ended 30 June 2020[74]. Assets and Liabilities - Cash and bank balances decreased by 13.0% from RMB380.9 million as at 31 December 2019 to RMB331.6 million as at 30 June 2020[93]. - Bank borrowings decreased by 5.6% from RMB236.0 million as at 31 December 2019 to RMB222.7 million as at 30 June 2020[93]. - Current liabilities decreased by 23.9% from RMB547.1 million as at 31 December 2019 to RMB416.6 million as at 30 June 2020[93]. - Total equity increased by 10.7% from RMB1,035.5 million as at 31 December 2019 to RMB1,146.2 million as at 30 June 2020[93]. - Net current assets increased by 8.1% from RMB822.3 million as at 31 December 2019 to RMB889.1 million as at 30 June 2020[93]. - The current ratio increased from 2.5 as of December 31, 2019, to 3.1 as of June 30, 2020, primarily due to the decrease in accounts payable and contract liabilities[109]. - The gearing ratio decreased from 34.8% as of December 31, 2019, to 26.8% as of June 30, 2020, mainly due to the decrease of total liabilities[110]. Shareholding and Incentive Schemes - As of June 30, 2020, Mr. Gao Dinan held a long position of 488,248,800 shares, representing 36.99% of the Company[126]. - Mr. Zheng Wei also held a long position of 488,248,800 shares, equivalent to 36.99% of the Company[126]. - Ms. Zhou Yan was a beneficial owner of 5,000,000 shares, which is 0.38% of the Company[126]. - The total number of shares issued as of June 30, 2020, was 1,320,018,350[126]. - The company granted RSUs representing 62,499,240 shares to 71 grantees under the 2016 Share Incentive Scheme as of June 30, 2020[152]. - The purpose of the 2016 Share Incentive Scheme is to attract, motivate, and retain skilled personnel by providing equity ownership opportunities[143]. - The company granted 21,013,000 RSUs under the 2019 Share Incentive Scheme to 29 grantees, none of whom are directors or senior management[163]. - The purpose of the 2019 Share Incentive Scheme is to attract, motivate, and retain skilled personnel by providing equity ownership opportunities[161]. Corporate Governance and Compliance - The company has complied with all applicable code provisions set out in the Corporate Governance Code, except for the separation of the roles of chairman and CEO[184]. - The company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[186]. - The company has established a risk management and internal control system, with the Audit Committee reviewing its effectiveness annually and management providing necessary information to the board[194]. - There were no incidents of non-compliance with the Model Code for securities transactions by directors or employees during the six months ended June 30, 2020[192]. - The company has implemented anti-bribery and anti-corruption measures, including annual fraud and bribery risk assessments conducted by management[200]. Strategic Initiatives and Future Outlook - The company launched its first SaaS product "Qingzhou" in June 2020, aimed at Quick Apps service for merchants and enterprises[25]. - The DAPG platform supports Quick Apps, providing functions like fast uploading and data support, crucial for the healthy development of the Quick Apps ecosystem[24]. - The company is exploring monetization capabilities of Quick Apps and the Internet of Things, while strengthening its 5G strategic layout[32]. - A new mobile game developed in-house was successfully launched in the overseas market in June 2020, receiving positive feedback from users[30]. - The management remains optimistic yet cautious about business development in the second half of 2020, focusing on online business opportunities[34].
万咖壹联(01762) - 2020 - 中期财报