FIRE ROCK(HK:01909)2020-03-11 22:10Financial Performance - Fire Rock Holdings Limited reported a revenue of HKD 150 million for the fiscal year 2019, representing a year-on-year increase of 25%[5]. - The company reported a net profit of HKD 30 million for 2019, with a profit margin of 20%[5]. - Revenue for 2019 reached approximately RMB 304.0 million, an increase of 89.2% compared to 2018[37]. - Profit for 2019 was approximately RMB 208.8 million, up 132.5% from 2018[37]. - The company's profit rose by 132.5% to approximately RMB 208.8 million in 2019, compared to about RMB 89.8 million in 2018[45]. - The company's revenue for the year ended December 31, 2019, increased by approximately RMB 143.3 million to about RMB 304.0 million, compared to approximately RMB 160.7 million for the year ended December 31, 2018[59]. - The group's gross profit for the year ended December 31, 2019, was approximately RMB 284.2 million, an increase of about RMB 140.0 million from approximately RMB 144.2 million for the year ended December 31, 2018, resulting in a gross margin of approximately 93.5% compared to 89.7% in the previous year[102]. User Engagement and Growth - The company achieved an average monthly paying user (MPU) count of 50,000, which is a 15% increase compared to the previous year[5]. - The number of active users reached 200,000, which is a 40% increase from the previous year[5]. - Fire Rock Holdings Limited is exploring potential acquisitions to expand its market presence in Southeast Asia, targeting a 30% growth in user base by 2021[5]. - Major revenue contributions came from a few games, with "Fishing Battle" and "Snack Battle" accounting for approximately 46.5% and 30.7% of total revenue, respectively, for the year ended December 31, 2019[143]. Game Development and R&D - Fire Rock Holdings Limited plans to launch two new mobile games in 2020, aiming to capture a 10% market share in the mobile gaming sector[5]. - The company is investing HKD 20 million in research and development (R&D) to enhance game features and user experience[5]. - The company plans to enhance R&D investment and optimize game products in 2020[39]. - The company aims to enhance its R&D capabilities and diversify its game offerings, with significant investments planned in various areas[51]. - The company has developed and authorized a total of 18 game series for various operators, enhancing its operational reach[46]. - Four new game series are in development, including "Super Bounce," "Jungle Treasure," "Battle Cells," and "Intelligent Ball" series[68]. Revenue Sources and Market Strategy - Mobile game revenue amounted to approximately RMB 297.8 million, representing a growth of 92.3% year-on-year[38]. - Mobile games accounted for 98.0% of total revenue in 2019[38]. - The company plans to expand into overseas markets to promote games in new potential regions while consolidating its position in major global markets[71]. - The company aims to expand its market presence by self-operating games overseas, reducing reliance on the competitive Chinese market[146]. Financial Management and Compliance - The company has no pledged assets as collateral for bank loans or other financing arrangements as of December 31, 2019[123]. - The company has no significant contingent liabilities as of December 31, 2019, maintaining a stable financial position[131]. - The company has maintained compliance with the Securities and Futures Ordinance and other relevant regulations throughout the year[151]. - The company has established a risk management and internal control system reviewed by the audit committee[147]. Corporate Governance - The board of directors consists of eight members, including three executive directors, ensuring a diverse range of business experience and knowledge[171]. - The company has established a nomination committee to review board composition and oversee the appointment and succession planning of directors[172]. - The audit committee has been established to oversee internal controls, financial disclosures, and reporting matters[198]. - The committee is responsible for ensuring that employees can report concerns about financial reporting or internal controls confidentially[200].