Financial Performance - Revenue for the first half of 2019 reached $225.1 million, a 22.0% increase compared to $184.5 million in the same period of 2018[9] - Gross profit for the same period was $50.1 million, reflecting a 27.7% increase from $39.3 million year-over-year[9] - Adjusted EBITDA for the first half of 2019 was $22.97 million, up 75.8% from $13.06 million in the first half of 2018[9] - Adjusted net profit for the first half of 2019 was $17.36 million, representing a 65.0% increase from $10.52 million in the same period of 2018[9] - Operating profit decreased to $9.31 million, a decline of 19.1% year-on-year, primarily due to increased share-based compensation[42] - The company's net profit attributable to equity shareholders was $7.6 million, down from $10.1 million in the previous year[44] - The company reported a pre-tax profit of $7,588,000 for the six months ended June 30, 2019, down from $10,131,000 in 2018[110] - Basic earnings per share for the six months ended June 30, 2019, were $0.0052, compared to $0.0089 in 2018[110] Revenue Breakdown - Programmatic advertising revenue for the first half of 2019 was $126.8 million, a 43.7% increase from $88.2 million in the same period of 2018[16] - Mobile advertising revenue reached $225.1 million, with a year-over-year increase of 22.1% from $184.4 million in 2018[20] - Revenue from Greater China was $132.6 million, representing 58.9% of total mobile advertising revenue, with an 11.9% increase from the previous year[24] - EMEA region mobile advertising revenue surged by 163.4% to $34.3 million, increasing its share to 15.2% of total mobile advertising revenue[24] - The gaming segment accounted for $87.5 million, or 38.9% of total mobile advertising revenue, showing a substantial increase of 121.4% from $39.5 million in 2018[26] - Revenue from the gaming and life services application developers was the main driver of revenue growth, with mobile advertising income from life services, gaming, and e-commerce applications increasing by 162.3%, 121.4%, and 43.2% respectively, totaling $146.2 million and accounting for 65.0% of mobile advertising revenue[27] Cost and Expenses - Cost of sales increased by 20.5% to $174.9 million for the six months ended June 30, 2019, compared to $145.2 million in 2018, primarily driven by rapid growth in mobile advertising service revenue[28] - Research and development expenses for the first half of 2019 totaled $17.1 million, a 39.4% increase compared to the same period in 2018[17] - General and administrative expenses rose to $20.5 million, with share-based compensation contributing significantly to this increase[41] - Sales and marketing expenses increased to $4.4 million, a year-on-year growth of 46.1%[39] - The cost of programmatic advertising increased by 36.4% to $100.9 million, with traffic procurement costs rising by 40.1% to $93.8 million[30] Assets and Liabilities - Total assets as of June 30, 2019, were $432.2 million, up from $406.2 million at the end of 2018, while total liabilities increased slightly to $175.1 million[49] - The debt-to-asset ratio improved to 40.5% as of June 30, 2019, down from 43.0% at the end of 2018[49] - Cash and cash equivalents stood at $60.2 million as of June 30, 2019, a decrease from $64.9 million at the end of 2018[50] - Current liabilities decreased from $173,592 thousand as of December 31, 2018, to $166,564 thousand as of June 30, 2019, reflecting a reduction of approximately 4.0%[61] - Trade and other receivables increased to $253,420 thousand as of June 30, 2019, up from $220,854 thousand as of December 31, 2018, marking a rise of about 14.7%[61] Cash Flow - For the six months ended June 30, 2019, the net cash used in operating activities was $(15,538) thousand, compared to $(1,555) thousand in the same period of 2018[68] - The net cash used in investing activities was $(1,650) thousand, a decrease from $(3,860) thousand in the prior year[68] - The net cash generated from financing activities was $11,961 thousand, compared to $(4,621) thousand in the same period of 2018[68] - The company reported a decrease in cash and cash equivalents of $(5,227) thousand for the period, compared to a decrease of $(10,036) thousand in the previous year[68] Strategic Initiatives - The company plans to continue expanding its programmatic traffic supply in Europe and the United States throughout the second half of 2019[16] - The company aims to empower global application developers with cutting-edge integrated solutions to optimize costs and drive business growth[18] - The company plans to continue implementing incentive measures to attract application developers to integrate with its Mintegral SDK, which is expected to strengthen its competitive advantage in programmatic advertising[36] - The company is considering strategic acquisitions to enhance its product offerings, with potential targets identified in the gaming analytics sector[167] Market Outlook - The company provided a positive outlook, projecting a revenue growth of 20-25% for the second half of 2019[168] - New product launches are expected to contribute an additional RMB 100 million in revenue by the end of 2019[167] - Market expansion plans include entering two new international markets by Q4 2019, targeting a 15% increase in market share[169] Employee and Management - The company has a total of 241 employees and 6 consultants participating in the employee restricted share unit plan as of June 30, 2019[151] - Short-term employee benefits for key management increased to $405,000 for the six months ended June 30, 2019, compared to $380,000 for the same period in 2018, a rise of 6.6%[139] - Share-based compensation for key management surged to $2,836,000 for the six months ended June 30, 2019, compared to $391,000 in the prior year, marking a significant increase of 625.6%[139] Compliance and Governance - The audit committee has reviewed the unaudited interim financial information and confirmed compliance with applicable accounting standards[159] - The company has adhered to the corporate governance code throughout the reporting period[160]
汇量科技(01860) - 2019 - 中期财报