联众(06899) - 2020 - 中期财报

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous period[6]. - Revenue for the six months ended June 30, 2020, was RMB 124,288,000, a decrease of 15.7% compared to RMB 147,390,000 in the same period of 2019[14]. - Loss attributable to equity holders of the Company for the same period was RMB 70,541,000, representing a 15.3% improvement from a loss of RMB 83,243,000 in 2019[14]. - The company reported a loss before income tax increased to RMB 156,527,000, compared to a loss of RMB 95,284,000 in the prior year, reflecting a 64.3% increase in losses[156]. - Total comprehensive loss for the period was RMB 176,468,000, significantly higher than RMB 88,741,000 in the same period of 2019, marking a 98.8% increase[157]. - The company experienced a significant increase in losses year-over-year, with a total loss increase of approximately 75.7% from the previous year[198]. User Engagement and Market Expansion - User data showed an increase in active users, reaching Z million, which is an A% increase year-over-year[6]. - New product launches are expected to contribute an additional $C million in revenue, with anticipated market expansion into D regions[6]. - Market expansion strategies include potential acquisitions, with a focus on companies that align with the company's growth objectives[6]. - The management highlighted a strategic shift towards digital assets management, aiming to capture emerging market opportunities[6]. - The company plans to enhance its marketing efforts, increasing the budget by F% to drive user acquisition and retention[6]. - The Company has launched "user recall" marketing efforts to reactivate dormant users, which have shown positive results[22]. Operational Efficiency and Cost Management - Operational efficiency improvements are expected to reduce costs by G%, contributing to overall profitability[6]. - The Company has focused on optimizing its cost structure in China by shifting away from less profitable games and channels[21]. - Selling and marketing expenses decreased by RMB 18.4 million or 70.0% to RMB 7.9 million in the first half of 2020, attributed to fewer events held due to the COVID-19 pandemic[41]. - Administrative expenses increased by RMB 24.8 million or 21.8% to RMB 138.7 million in the first half of 2020, mainly due to losses from cash returns and financing costs from new convertible notes[42]. - Research and development expenses decreased significantly by RMB 2.2 million or 95.7% to RMB 0.1 million for the six months ended June 30, 2020, attributed to reduced activities due to the pandemic[47]. Shareholder Value and Dividends - The company remains committed to shareholder value, with plans to increase dividends by H% in the upcoming fiscal year[6]. - For the six months ended June 30, 2020, no dividends were paid by the invested startup companies, indicating a focus on product development and launching[70]. - The Group did not declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[89]. Corporate Governance and Management Changes - The Company complied with the Corporate Governance Code during the six months ended June 30, 2020, with a noted deviation regarding the roles of chairman and chief executive officer being held by the same individual[131]. - Mr. Yang resigned as chairman and CEO effective June 30, 2020, and Mr. Li was appointed as chairman and acting CEO[132]. - The company is currently seeking a new CEO following the resignation of Mr. Yang on June 30, 2020, with Mr. Li Yangyang serving as the acting CEO[135]. - The Board consists of two executive Directors, four non-executive Directors, and three independent non-executive Directors, ensuring a strong independence element[132]. Cash Flow and Financial Position - The net cash used in operating activities for the first half of 2020 was RMB 39,353,000, significantly higher than RMB 4,632,000 in the same period of 2019[166]. - Cash flows from investing activities resulted in a net cash outflow of RMB 19,367,000 for the six months ended June 30, 2020, compared to RMB 47,270,000 in the prior year, indicating a decrease in cash outflow of 59.0%[167]. - The company generated net cash from financing activities amounting to RMB 67,006,000 in the first half of 2020, compared to RMB 18,574,000 in the same period of 2019, reflecting an increase of 260.5%[167]. - Cash and cash equivalents at the end of the period increased to RMB 190,344,000, up from RMB 121,825,000 at the end of June 2019, marking a growth of 56.2%[167]. Strategic Initiatives and Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of B% based on current market trends and user engagement[6]. - The company is investing in R&D for new technologies, allocating $E million to enhance product offerings and improve user experience[6]. - The company has reorganized its WPT and eSports businesses into Allied Esports Entertainment, Inc. for a separate listing on NASDAQ, indicating a strategic move to enhance market presence[170]. - The company is expanding its eSports and sports e-commerce businesses globally, which reflects a strategic focus on diversifying its revenue streams[170].