家乡互动(03798) - 2021 - 中期财报

Financial Performance - For the six months ended June 30, 2021, the company's revenue and gross profit were RMB 557.4 million and RMB 422.7 million, representing an increase of approximately 44.0% and 44.8% compared to the same period last year[7]. - The adjusted net profit for the six months was approximately RMB 315.6 million, a rise of about 45.1% compared to RMB 217.6 million for the same period in 2020[7]. - The company's revenue for the six months ended June 30, 2021, was approximately RMB 557.4 million, an increase of 44.0% compared to RMB 387.2 million for the same period in 2020[11]. - The gross profit rose by 44.8% to approximately RMB 422.7 million, with a slight increase in gross margin from 75.4% to 75.8%[13]. - The net profit attributable to the company's owners increased by approximately 54.0% to RMB 310.7 million for the six months ended June 30, 2021[20]. - The net profit for the period was RMB 310,089 thousand, up 54% from RMB 201,719 thousand in the previous year[34]. - Basic earnings per share increased to RMB 24.92 from RMB 16.23, representing a 53% growth[34]. User Engagement - The Daily Active Users (DAUs) increased to 7,950,871, a growth of 32.3% year-over-year, while the number of paying users reached 6,276,333, up 30.3% from the previous year[8]. - Daily Active Users (DAUs) significantly increased due to enhanced game development and promotional activities, contributing to higher player engagement and in-game purchases[11]. Game Development and Offerings - The company launched 11 new Mahjong game variants and 8 new Poker game variants in the first half of 2021, expanding its game offerings significantly[7]. - Continued focus on improving and upgrading existing casual games, particularly fishing games, to enhance player experience and retention[9]. - The company is committed to developing HTML5 versions of its games and other potential mini-programs to connect with various HTML5-supported social platforms and websites[9]. Marketing and Advertising - The company plans to further enhance its advertising revenue by collaborating with other platform operators and optimizing ad placements within its games[9]. - Sales and marketing expenses increased by approximately 40.8% to RMB 75.5 million, primarily due to heightened marketing efforts to attract and retain players[16]. - The company plans to invest in marketing activities and partnerships with international game distribution channels to expand its overseas market presence[10]. Research and Development - Significant investments were made in research and development, with total expenses related to technical staff benefits, server costs, and outsourced development amounting to RMB 48.5 million for the first half of 2021[9]. - The group has been utilizing a tax policy allowing for a 175% deduction on R&D expenses, which has positively impacted its taxable income calculations[50]. Financial Position - As of June 30, 2021, the group had cash and cash equivalents of approximately RMB 955.5 million, up from RMB 732.7 million as of December 31, 2020[25]. - The capital expenditure for the six months ended June 30, 2021, was approximately RMB 16.5 million, an increase from RMB 9.7 million for the same period in 2020[27]. - The group had no short-term or long-term bank borrowings as of June 30, 2021, and the debt-to-asset ratio was zero[26]. - The total employee costs for the six months ended June 30, 2021, were approximately RMB 46.8 million, a decrease from RMB 50.2 million in the same period of 2020[30]. - The group aims to utilize internal resources and sustainable growth for funding its expansion and business operations[24]. Strategic Acquisitions - The company is actively seeking acquisition opportunities, having acquired a 40% stake in Jilin Xinyue Network Technology Co., which expanded its local market presence[10]. - The group plans to explore opportunities for strategic acquisitions or collaborations with local small and medium-sized mobile game developers to enhance game-related resources[29]. Share Incentive Plan - The company issued 79,276,000 new shares under the share incentive plan, representing 6.31% of the total shares issued[73]. - The company aims to retain and incentivize employees through the share incentive plan, which is effective for 10 years from June 6, 2019[71]. - The company confirmed that 50% of the shares granted under the share incentive plan will vest on the listing date, with the remaining 50% vesting quarterly thereafter[74]. Corporate Governance - The board believes that having the same person serve as both chairman and CEO is beneficial for the company's management[110]. - The company has complied with the corporate governance code during the reporting period, with a noted exception regarding the separation of roles for chairman and CEO[110]. Future Outlook - The company will continue to leverage its game development experience in China to launch games suitable for overseas players in various regions[10]. - The company anticipates that Jilin Xinyue's forecasted profits will not fall below the guaranteed profits for the years ending December 31, 2021, and 2022[59].