HOMELAND ITL(HK:03798)2021-04-21 09:11Financial Performance - The company's revenue for the year ended December 31, 2020, was approximately RMB 772.0 million, an increase of about 36.6% compared to RMB 564.9 million in 2019[7]. - Gross profit for the same period was approximately RMB 592.1 million, reflecting a growth of about 33.9% from RMB 442.3 million in 2019[10]. - Adjusted net profit for 2020 was approximately RMB 417.8 million, up 36.2% from RMB 306.8 million in 2019[10]. - The company reported a revenue of approximately RMB 772.0 million and a gross profit of RMB 592.1 million for the year ended December 31, 2020, representing an increase of about 36.6% and 33.9% year-over-year, respectively[12]. - The adjusted net profit attributable to the company's owners for the year ended December 31, 2020, was approximately RMB 417.8 million, an increase of 36.2% from approximately RMB 306.8 million in 2019[29]. - The company's profit before tax increased by approximately 86.7% to about RMB 460.6 million, representing 59.7% of total revenue[24]. - Net profit attributable to the company's owners rose by approximately 89.0% to about RMB 390.8 million[26]. - The company reported a total comprehensive income of RMB 388,752 thousand for 2020, compared to RMB 206,788 thousand in 2019, showing an increase of 88.0%[195]. - The company’s net assets increased to RMB 949,352 thousand in 2020 from RMB 616,577 thousand in 2019, reflecting a growth of 54.0%[196]. User Engagement and Growth - The total number of registered players reached 259,793,180, a 59.0% increase from the previous year[10]. - Daily Active Users (DAUs) increased to 7,521,912, representing a growth of 33.3% compared to 2019[10]. - The number of paying players reached 5,592,374, an increase of 35.0% year-over-year[10]. - Significant growth in DAUs was noted in central provinces such as Shaanxi, Henan, Shandong, and Hebei[10]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[39]. Marketing and Strategic Plans - The company plans to strengthen its regional marketing efforts in 2021, particularly in local provinces to increase DAUs and market share[10]. - Focus will be on consolidating market share in Jiangsu, Zhejiang, and Shanghai in 2021[10]. - In 2021, the company plans to enhance advertising revenue by collaborating with platform operators to integrate in-game advertising slots[14]. - The company aims to expand its game portfolio and improve player retention by developing additional localized game variants and increasing its market presence in regions like Jiangsu, Zhejiang, and Shanghai[14]. - The company plans to launch three new game titles in the upcoming year, aiming to capture a larger market share[39]. Financial Management and Investments - As of December 31, 2020, the company had cash and cash equivalents of approximately RMB 732.7 million, up from RMB 502.4 million as of December 31, 2019[31]. - The company's capital expenditure for the year ended December 31, 2020, was approximately RMB 160.7 million, significantly higher than RMB 48.2 million for the year ended December 31, 2019[33]. - The company is actively seeking acquisition opportunities, including a 40% stake acquisition in Jilin Xinyue Network Technology Co., Ltd. for RMB 150 million[15]. - The company intends to fund its expansion and operations through internal resources and sustainable growth[30]. - The company has completed a strategic acquisition of a smaller gaming studio for $5 million to enhance its product offerings[39]. Corporate Governance and Compliance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[114]. - The board consists of nine directors, including five executive directors and four independent non-executive directors[119]. - Independent non-executive directors ensure that the company's regulatory reports meet high standards and maintain balance within the board through effective independent judgment[124]. - The company has maintained compliance with relevant Chinese laws and regulations, obtaining all necessary licenses and approvals for its operations[48]. - The company has established a board diversity policy to enhance the skills, knowledge, and experience of board members, ensuring no discrimination based on race, age, gender, or religion[132]. Environmental and Social Responsibility - The company reported a total greenhouse gas emissions of 123.05 tons CO2 equivalent for the year 2020, with direct emissions from vehicles at 12.59 tons and indirect emissions from electricity at 110.46 tons[155]. - The company has committed to replacing all existing electronic equipment with energy-efficient devices by the end of 2021, contributing to its sustainability goals[154]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[144]. - The company promotes resource efficiency through measures such as automatic shutdown of electronic devices after hours and monthly monitoring of utility usage[159]. - The company has implemented measures to reduce water usage, including installing automatic faucets in restrooms[158]. Risks and Challenges - The group faces risks related to player retention and attraction, as well as the performance of its existing game portfolio[50]. - The company faces several risks related to contractual arrangements, including potential non-compliance with Chinese laws, which could lead to severe consequences such as the annulment of agreements[82]. - The implementation of the new Foreign Investment Law introduces uncertainties regarding its interpretation and impact on the company's structure and operations[82]. - The group relies on third-party payment providers, primarily WeChat Pay and Alipay, to facilitate in-game purchases, which exposes the group to risks associated with payment transmission stability[51]. Shareholder Information - The company declared a final dividend of RMB 0.1593 per ordinary share, equivalent to HKD 0.1892, subject to shareholder approval[103]. - The company has maintained a public float of over 25% as required by listing rules[110]. - The company has confirmed no related party transactions that require independent shareholder approval as of December 31, 2020[86]. - The company’s major shareholders include Beijing Chuangxin Yizhou Investment Management Co., Ltd., which also holds 72,312,000 shares, equating to 5.76% of the equity[95].