FIRE ROCK(HK:01909)2021-04-11 23:10Financial Performance - Fire Rock Holdings Limited reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 25% year-over-year growth[2]. - The company recorded revenue of approximately RMB 520.9 million for the fiscal year ended December 31, 2020, representing a growth of 71.3% compared to 2019[50]. - The profit for the same period was approximately RMB 344.9 million, an increase of 65.2% year-over-year[51]. - The company's revenue increased by approximately 71.3% from about RMB 304.0 million in 2019 to approximately RMB 520.9 million in 2020[63]. - The company's gross profit for the year ended December 31, 2020, was approximately RMB 480.0 million, an increase of about RMB 195.8 million compared to approximately RMB 284.2 million for the year ended December 31, 2019[122]. - The profit attributable to equity owners increased by approximately 64.4% from about RMB 208.8 million in 2019 to approximately RMB 343.2 million in 2020[143]. User Engagement and Market Expansion - The company has expanded its user base, with the average monthly paying users increasing to 500,000, a rise of 20% compared to the previous year[3]. - Fire Rock Holdings Limited plans to enter new markets in Southeast Asia, targeting a 15% market share within the next two years[3]. - The company aims to enhance its international competitiveness by leveraging its experience in game distribution in the Americas, Southeast Asia, and Japan[59]. - The company has initiated self-operated overseas operations for two games, "Jungle Treasure" and "Bull Hunter," to mitigate risks associated with the competitive Chinese gaming market and regulatory changes, thereby expanding revenue sources[182]. Research and Development - The company is investing heavily in R&D, allocating $20 million for the development of new gaming technologies and features[3]. - The company plans to enhance R&D investment and optimize game products to provide high-quality gaming content[52]. - The total R&D costs for the year ended December 31, 2020, increased by approximately RMB 12.8 million to RMB 29.98 million from RMB 17.24 million in 2019, driven by higher development costs for new mobile games[135]. - The number of R&D personnel increased to 140 in 2020 from 102 in 2019, reflecting the company's commitment to expanding its development capabilities[135]. Game Development and Portfolio - The company launched 9 new game development projects and commercialized 3 new game series during the year[51]. - The company launched three mobile game series in 2020, including "Super Bounce Bounce," "Jungle Treasure," and "Bull Hunter," further diversifying its product offerings[63]. - The company has commercialized a total of 23 major game series as of December 31, 2020[73]. - The company has nine games in development, including "Battle Cell" and "Intelligent Pinball," with expected launch dates in 2021[87][88]. Marketing and User Engagement Strategies - Fire Rock Holdings Limited has implemented new marketing strategies, resulting in a 50% increase in user engagement[3]. - The company aims to reduce dependence on major authorized operators by providing new high-quality licensed game products and upgrading existing games to enhance player experience and spending[180]. - The company is committed to continuous upgrades and optimization of existing games to maintain player interest and stimulate spending, while also developing new games and exploring new markets to sustain competitiveness in the gaming industry[181]. Financial Stability and Investments - As of December 31, 2020, the company's cash balance was approximately RMB 596.1 million, indicating strong financial stability[52]. - The company completed the acquisition of 100% of the shares of Decheng International Holdings Limited on February 4, 2021, which is expected to significantly contribute to future performance[55]. - The integration of Decheng International is expected to strengthen cash flow and financial stability, enhancing the company's industry position[92]. - The company has established a compensation committee to review and recommend compensation and rewards for directors and senior management based on their experience, responsibilities, workload, and the group's performance[159]. Corporate Governance - The company is committed to enhancing its corporate governance practices, as outlined in its annual report[3]. - The board believes that the company has complied with the relevant corporate governance code provisions for the year ending December 31, 2020[200]. - The company emphasizes maintaining high levels of corporate governance as a key to its success[199]. Dividend and Shareholder Information - The board proposed a final cash dividend of HKD 0.05208 per share, totaling approximately RMB 42.1 million[52]. - For the year ending December 31, 2020, no dividends were declared or paid, but a proposed final dividend of HKD 0.05208 per share (approximately RMB 0.0438) was recommended by the board on March 30, 2021[194].