祖龙娱乐(09990) - 2021 - 中期财报

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2021, representing a 25% increase compared to the same period last year[3]. - Revenue for the six months ended June 30, 2021, was RMB 553.8 million, a decrease of 8.0% from RMB 601.9 million in 2020[23]. - Gross profit for the same period was RMB 441.1 million, down 2.7% from RMB 453.4 million[23]. - The company reported a net loss of RMB 85.8 million, a significant decrease of 89.1% from RMB 787.2 million in 2020[23]. - The adjusted net loss was RMB 47.1 million, compared to a profit of RMB 151.6 million in the same period last year, reflecting a 131.1% decline[23]. - The total comprehensive loss for the period was RMB 112,680 thousand, compared to RMB 787,462 thousand in the same period last year, reflecting a reduction in overall losses[108]. - The net loss attributable to the owners of the company was RMB 85,835 thousand, compared to a loss of RMB 787,199 thousand in the same period last year, showing a significant improvement[107]. - Basic loss per share improved to RMB (0.11) from RMB (2.46) year-over-year[177]. User Engagement and Market Expansion - User engagement metrics showed a 30% increase in daily active users (DAUs) year-over-year, reaching 1.2 million[3]. - The total number of registered users reached 10 million, reflecting a 15% increase from the previous year[3]. - Market expansion efforts include targeting Southeast Asia, with plans to localize content for regional audiences[3]. - The company plans to launch two new games in Q4 2021, aiming to capture a larger share of the mobile gaming market[3]. - The company plans to launch multiple MMORPG, SLG, and other types of mobile games globally in the second half of 2021 and throughout 2022[29]. Research and Development - The company is investing RMB 100 million in research and development for new gaming technologies and features[3]. - Research and development expenses increased by 48.2% to RMB 337.3 million from RMB 227.6 million[23]. - The company is focused on developing next-generation premium mobile games and has established a research and development layout with studios in Beijing, Shanghai, Chengdu, and Changchun[24]. - The Shanghai studio has begun to attract high-end R&D and publishing talent, with several core personnel already on board[24]. Financial Position and Cash Flow - Cash used in operating activities was RMB 75.6 million, a decrease of 127.2% compared to cash generated of RMB 277.9 million in the same period of 2020[58]. - Cash used in investing activities increased to RMB 389.3 million, a rise of 3,091.0% from RMB 12.2 million in 2020, primarily due to investments in funds and upstream/downstream companies[59]. - Cash used in financing activities was RMB 20.4 million, down 91.7% from RMB 244.8 million in 2020, mainly due to dividend payments made in 2020[60]. - The company’s cash and cash equivalents decreased significantly due to substantial investments in financial products and property, plant, and equipment[120]. - The ending cash and cash equivalents as of June 30, 2021, were RMB 2,543,334 thousand, a decrease from RMB 3,055,711 thousand at the beginning of the period[123]. Strategic Partnerships and Acquisitions - A new partnership with Tencent is expected to enhance distribution channels and increase user acquisition[3]. - The company is exploring potential acquisitions to enhance its game portfolio and expand its market presence[3]. - The company plans to actively expand its self-developed and self-published business system in vertical fields based on accumulated overseas publishing experience[25]. Corporate Governance and Shareholder Information - The company has complied with all applicable code provisions of the corporate governance code, except for the separation of the roles of chairman and CEO[93]. - As of June 30, 2021, the major shareholder, Mr. Li Qing, holds 34.19% of the company's issued share capital, amounting to 278,799,802 shares[79]. - Tencent holds a 16.88% stake in the company, equivalent to 137,698,399 shares as of June 30, 2021[79]. - The company maintained sufficient public float during the six months ending June 30, 2021[96]. Future Outlook - Future guidance indicates expected revenue growth of 20% for the second half of 2021, driven by new product launches and marketing strategies[3]. - The company anticipates that the expansion into various mobile game genres will lead to a more stable and sustained contribution to revenue over time[34]. - The company expects to continue benefiting from tax incentives for high-tech enterprises, maintaining a reduced corporate income tax rate of 15%[173].