家乡互动(03798) - 2020 - 中期财报

Financial Performance - For the six months ended June 30, 2020, the company's revenue and gross profit were RMB 387.2 million and RMB 299.8 million, representing an increase of approximately 45.3% and 46.1% year-on-year respectively[7]. - The company's revenue for the six months ended June 30, 2020, was approximately RMB 387.2 million, an increase of 45.3% compared to RMB 266.5 million for the same period in 2019[12]. - The gross profit increased by 46.1% to approximately RMB 299.8 million for the six months ended June 30, 2020, maintaining a stable gross margin of 77%[14]. - The total profit and comprehensive income for the six months ended June 30, 2020, increased by approximately 93.7% to RMB 201.7 million from RMB 104.1 million for the same period in 2019[20]. - The net profit for the period was RMB 201.719 million, compared to RMB 104.134 million in the same period of 2019, representing a 93.6% increase[34]. - Adjusted net profit for the six months ended June 30, 2020, was approximately RMB 217.6 million, a 50.5% increase from RMB 144.6 million in the same period of 2019[23]. - The company's profit before tax increased by approximately 95.7% to RMB 247.4 million for the six months ended June 30, 2020, with a profit margin of 63.9%[18]. User Engagement - The total number of registered players reached 199,812,476, an increase of 62.0% compared to June 30, 2019[7]. - Daily Active Users (DAUs) increased to 6,009,622, up 9.2% from the same period last year[7]. - The number of paying players reached 4,815,023, reflecting a growth of 21.8% year-on-year[7]. - The COVID-19 pandemic led to increased player engagement as more users stayed at home, positively impacting the company's performance[8]. - The company expanded its mobile gaming business in response to increased customer engagement during the COVID-19 pandemic[41]. Game Development and Offerings - The company launched 53 new Mahjong game variations, 12 new Poker game variations, and 2 new casual game variations in the first half of 2020[7]. - The company plans to enhance its game portfolio and increase player engagement by developing localized game formats across China[9]. - The company is actively seeking acquisition opportunities, particularly in the localized Mahjong game development sector, with ongoing negotiations for a potential acquisition[10]. - The company is exploring opportunities for strategic acquisitions or partnerships with local small and medium-sized mobile game developers to enhance game-related resources and operational capabilities[29]. Revenue Sources - Advertising revenue for the first half of 2020 was RMB 56.7 million, supported by user engagement through free game room cards and virtual tokens[7]. - Advertising revenue accounted for approximately 14.6% of total revenue for the six months ended June 30, 2020, driven by in-game advertising from mini-programs[12]. - Revenue from self-developed mobile games reached RMB 209,155,000, an increase of 46.3% from RMB 143,049,000 in the previous year[46]. - Advertising revenue amounted to RMB 330,472,000, representing a significant increase from RMB 266,493,000 in the previous year[46]. Expenses and Costs - Sales and marketing expenses increased by approximately 8.1% to RMB 50.7 million for the six months ended June 30, 2020, primarily due to increased advertising spending[16]. - The sales cost increased by approximately 42.4% to RMB 87.4 million for the six months ended June 30, 2020, in line with business growth and expansion of the game portfolio[13]. - The total employee cost for the first half of 2020 was approximately RMB 50.2 million, down from RMB 60.9 million in the same period of 2019, primarily due to a reduction in share-based compensation[30]. - Employee benefits expenses increased to RMB 24,066,000 from RMB 23,508,000, showing a rise of 2.4%[48]. Cash and Assets - Cash and cash equivalents as of June 30, 2020, amounted to approximately RMB 603.2 million, up from RMB 502.4 million as of December 31, 2019[25]. - The company had no short-term or long-term bank borrowings as of June 30, 2020, and the debt-to-asset ratio was zero[26][27]. - The company's total assets as of June 30, 2020, were RMB 759.856 million, an increase from RMB 626.551 million as of December 31, 2019[35]. - Current liabilities increased to RMB 794.927 million from RMB 649.701 million at the end of 2019[35]. - The company reported a net increase in cash and cash equivalents of RMB 100,797,000 for the six months ended June 30, 2020, compared to RMB 122,262,000 in the same period of 2019[37]. Share-Based Payments and Incentives - The company has implemented stock option and share reward plans to align employee interests with those of the company[30]. - The company granted 79,276,000 shares under its share incentive plan, representing approximately 6.31% of the total shares post-listing[70]. - The estimated fair value of the shares granted under the share incentive plan was approximately RMB 91,041,000 as of June 30, 2020[72]. - The company recognized share-based payment expenses of RMB 2,877,000 related to the share incentive plan during the six months ended June 30, 2020[72]. - The total compensation for share-based payments to key management personnel was RMB 15,891,000 for the six months ended June 30, 2020, down from RMB 26,457,000 in the previous year[80]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the deviation regarding the roles of the chairman and CEO being held by the same individual[100]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim results and confirmed compliance with applicable accounting principles[102]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance during the reporting period[101]. Future Plans and Investments - The company plans to utilize internal resources and cash generated from operations to fund future expansions and business operations[24]. - Approximately HKD 89.1 million allocated for expanding and developing the game portfolio, including HKD 43.4 million for additional Mahjong variants and HKD 20.9 million for new Poker variants[106]. - HKD 105.9 million designated for improving technical infrastructure, with HKD 39.8 million for developing HTML5 versions of existing games[106]. - About HKD 65.5 million intended to enhance marketing capabilities and brand image, including HKD 30.6 million for advertising expenses[107].