祖龙娱乐(09990) - 2024 - 中期业绩

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 439.4 million, representing a 9.2% increase from RMB 402.3 million in the same period of 2023[2] - Gross profit for the same period was RMB 321.7 million, up 8.1% from RMB 297.7 million year-on-year[2] - Revenue from game publishing and operations was RMB 376.5 million, a 25.0% increase compared to RMB 301.2 million in the same period of 2023[10] - Revenue from the development and licensing segment decreased by 38.5% to RMB 62.0 million from RMB 100.8 million in the same period of 2023[10] - Revenue generated from the mainland China market was RMB 304.0 million, a 27.6% increase from RMB 238.3 million in the same period of 2023[12] - Revenue from regions outside mainland China was RMB 135.4 million, a 17.4% decrease from RMB 164.0 million in the same period of 2023[12] - The company reported a net loss attributable to owners of RMB (134,041) thousand for the six months ended June 30, 2024, compared to a loss of RMB (233,023) thousand in the same period of 2023, showing an improvement[66] - The operating loss for the six months ended June 30, 2024, was RMB 134.0 million, a 42.5% improvement compared to RMB 233.0 million in the same period of 2023[2] - Adjusted net loss decreased from RMB 214.9 million in 2023 to RMB 120.4 million in 2024, mainly due to increased total revenue and controlled R&D costs[22] Expenses and Cost Management - Research and development expenses decreased by 11.7% to RMB 264.1 million from RMB 299.2 million in the previous year[2] - Administrative expenses decreased by 9.3% to RMB 47.0 million from RMB 51.8 million year-on-year[2] - Sales and marketing expenses increased by 5.0% from RMB 164.4 million in 2023 to RMB 172.7 million in 2024, driven by higher promotional and advertising costs for self-developed games[16] - Revenue cost increased from RMB 104.6 million in the six months ended June 30, 2023, to RMB 117.7 million in the same period of 2024, primarily due to increased commissions from distribution and payment channels[13] - Employee benefit expenses decreased to RMB 274,568 thousand from RMB 303,213 thousand, a reduction of 9.4%[60] User Engagement and Game Development - The number of global users for the game "以閃亮之名" exceeded 16 million as of June 30, 2024[4] - The company plans to launch two major new games, "龍族：卡塞爾之門" and "踏風行," in the second half of 2024, aiming to enhance its product matrix and growth opportunities[3] - The company plans to launch seven new game products globally between the second half of 2024 and 2026, enhancing its diverse game portfolio[6] - The game "Three Kingdoms: Honghu Dominance" was launched on July 13, 2024, and is expected to show steady growth due to its long-term operational characteristics[5] - The company continues to invest in existing games like "Dragon Tribe Fantasy" and "Dreaming of the Immortal" to maintain a healthy long-term ecosystem[5] - The company has received positive user feedback from paid tests for new games like "Dragon Tribe: Kassel Gate" and "Treading the Wind" which are set to launch in 2024[8] Cash Flow and Investments - Cash used in operating activities improved from RMB 160.6 million in 2023 to RMB 68.3 million in 2024, a reduction of 57.5%[26] - For the six months ended June 30, 2024, net cash used in investing activities was RMB 112.7 million, a decrease from RMB 336.5 million in the same period of 2023, primarily due to the maturity of previously purchased financial assets and reduced cash outflows for time deposits[27] - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 43.5 million, an increase of 94.2% from RMB 22.4 million in the same period of 2023, mainly due to prepayments for share repurchase to stock brokers[28] - As of June 30, 2024, cash and cash equivalents at the end of the period decreased by 23.4% from RMB 728.9 million in 2023 to RMB 558.5 million in 2024[25] Corporate Governance and Structure - The company has established an audit committee consisting of three members, which reviewed the unaudited interim financial information for the period[38] - The company continues to evaluate the effectiveness of its corporate governance structure, particularly regarding the separation of the roles of Chairman and CEO[36] - The board of directors includes Chairman and Executive Director Li Qing, Executive Director Bai Wei, and several non-executive and independent directors[79] Market and Strategic Outlook - The company is focusing on technological innovation, including breakthroughs in dynamic lighting and self-developed global illumination for mobile games[3] - Approximately RMB 2,097.8 million of the net proceeds from the global offering has been utilized as of June 30, 2024, with the remaining funds expected to be used for strategic acquisitions and investments in the entertainment and technology sectors by July 2024[34] - The company operates primarily in the mobile game development and operation sector, with most non-current assets located in China[52]