友谊时光(06820) - 2019 - 年度财报

Financial Performance - FriendTimes Inc. reported a revenue of HKD 1.2 billion for the fiscal year, representing a year-over-year increase of 15%[3]. - The company’s net profit for 2019 was RMB 415,527,000, reflecting a growth of 23.4% from RMB 336,703,000 in 2018[14]. - The audited annual net profit was RMB 415.5 million, reflecting a year-over-year increase of 23.4%[21]. - Revenue from overseas markets reached RMB 568.8 million, accounting for 33.7% of total revenue, with a year-over-year increase of 105.8%[21]. - The average revenue per paying user increased by 34.4% year-over-year to RMB 531.5 in 2019[22]. - The gross profit for the same period was RMB 1,102,077,000, which is an increase of about 20% compared to RMB 918,290,000 in 2018[14]. - The gross margin improved to 60%, up from 55% in the previous year, due to cost optimization strategies[3]. - The company’s adjusted EBITDA for 2019 was RMB 478,683,000, an increase from RMB 378,716,000 in 2018, indicating improved operational efficiency[14]. - The gross profit increased by 20.0% to approximately RMB 1,102.1 million, with the gross margin rising from 62.7% to 65.2%[39]. User Growth and Market Expansion - The user base grew to 10 million active users, an increase of 25% compared to the previous year[3]. - FriendTimes Inc. plans to expand into Southeast Asian markets, targeting a 10% market share within the next two years[3]. - The company is focused on expanding its market presence and improving its product offerings in response to the growing demand in the gaming sector[17]. - The company plans to launch four new self-developed games in 2020, focusing on urban female, female fantasy, and casual elimination genres[26]. - The company aims to strengthen its leading position in female-oriented games and expand its game portfolio through version updates and new game launches[26]. Research and Development - Investment in R&D increased by 30%, focusing on enhancing gaming technology and user experience[3]. - Research and development expenses rose by 63.9% to approximately RMB 223.6 million, driven by new game launches and upgrades to existing games[40]. - The company plans to leverage advancements in 5G technology to enhance cloud gaming applications, which is expected to have a profound impact on the future of the gaming industry[17]. Corporate Governance - The company has adopted the corporate governance code as its governance framework and has complied with the code provisions up to December 31, 2019, except for the deviation disclosed in code provision A.2.1[85]. - The independent non-executive directors have extensive experience in finance, law, and management, with backgrounds in various reputable firms and institutions[77][79][81]. - The company has maintained compliance with the corporate governance code since its listing, ensuring transparency and accountability[85]. - The board consists of 7 members, including 4 executive directors and 3 independent non-executive directors[86]. - The company has established a procedure for the appointment of new directors, ensuring a diverse board composition[91]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development and integrates environmental, social, and governance (ESG) considerations into its risk management system[185]. - The company has established an ESG working group to collect relevant data and report on its performance in these areas[186]. - The company is committed to exceeding national environmental protection standards and has implemented environmental management systems to regulate greenhouse gas and waste emissions[194]. - The total greenhouse gas emissions for the year ended December 31, 2019, amounted to 935.73 tons of CO2 equivalent[197]. - The company engages with various stakeholders, including management, employees, investors, customers, suppliers, and regulatory bodies, to address their concerns and expectations[191]. Shareholder Information - The company proposed a final dividend of HKD 0.10 per ordinary share for the year ended December 31, 2019, subject to shareholder approval at the annual general meeting[123]. - As of December 31, 2019, the company's distributable reserves amounted to approximately RMB 421.9 million, with about RMB 196.3 million intended for the final dividend[131]. - The company repurchased a total of 8,488,000 ordinary shares in 2019, with a total cost of HKD 8,657,000[138]. - The largest shareholder, Mr. Jiang, controls 1,550,362,500 shares, representing 70.74% of the total shares[153]. Operational Highlights - The company has established partnerships with three major gaming platforms to increase distribution channels[3]. - The flagship game "Xi Fei Chuan" has generated strong cash flow and stable revenue for over 55 months, with a peak monthly revenue of RMB 41.0 million in 2019[23]. - The company has established contractual arrangements to maintain operational control over its subsidiaries in compliance with Chinese regulations[156]. - The company has not reported any updates regarding qualification requirements as of the date of the annual report[157]. Risk Management - The company faced various risks related to its gaming publishing business and the regulatory environment in China, requiring approvals from regulatory authorities[120]. - The company has implemented measures to control risks disclosed in the prospectus prior to its listing[108]. - The company has a dedicated internal audit function to independently assess the adequacy and effectiveness of its risk management and internal control systems[107].