Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 315,379,000, a decrease of 11.0% compared to RMB 354,399,000 in the same period of 2023[6] - Gross profit for the same period was RMB 171,403,000, down 13.9% from RMB 199,168,000 year-on-year[6] - Adjusted net profit for the six months was RMB 25,539,000, representing a decline of 35.5% from RMB 39,625,000 in the previous year[6] - Other income decreased by 38.7% to RMB 4,315,000 from RMB 7,042,000 year-on-year[6] - Revenue decreased by approximately RMB 39.0 million or 11.0% to approximately RMB 315.4 million for the six months ended June 30, 2024, compared to RMB 354.4 million for the same period in 2023[9] - Net profit declined by approximately RMB 13.8 million or 35.1% to approximately RMB 25.5 million year-on-year[9] - Gross profit decreased by approximately RMB 27.8 million or 13.9% to about RMB 171.4 million for the six months ended June 30, 2024, with a gross margin decline from 56.2% to 54.3%[14] - The company reported a net profit of RMB 25,539,000 for the six months ended June 30, 2024, compared to RMB 39,351,000 in the prior year, indicating a decrease of approximately 35%[59] - Basic earnings per share for the period was RMB 0.19, down from RMB 0.29 in the previous year[59] Research and Development - Research and development expenses increased by 17.0% to RMB 58,899,000, compared to RMB 50,324,000 in the prior year[6] - Research and development expenses increased by approximately RMB 8.6 million to about RMB 58.9 million due to hiring more R&D personnel[9] - Research and development expenses increased by approximately RMB 8.6 million or 17.0% to about RMB 58.9 million, mainly due to an increase in employee benefits and salaries for R&D personnel[19] Game Development and Market Strategy - The company has established long-term partnerships with international sports leagues and top football clubs, enhancing its game offerings[7] - The game "Best Eleven - Champion Club" celebrated its fourth anniversary, introducing new gameplay features that significantly boosted monthly revenue[7] - The core game "Best Club" has become highly competitive in the mobile football game market in mainland China, with a substantial increase in paying user numbers[7] - The company plans to continue collaborations with well-known football stars to further increase active and paying user scales[7] - The company launched the baseball game "Baseball Master" in North America, ranking as the second most popular MLB licensed game, with daily revenue exceeding $100,000 for the first time[8] - The basketball game "NBA Peak Showdown" received approval for launch in July 2024 and is expected to enhance player engagement and expand the user base[8] - The company plans to expand into overseas markets, targeting Japan, Italy, the UK, and France, with strategic activities planned for "Best XI - Champion Club" in the domestic market[10] - The upcoming game "Code Name: Fishing Master" is expected to enter the testing phase in Q4 2024, with a potential release in the first half of 2025[10] Financial Position and Cash Flow - Cash and cash equivalents amounted to approximately RMB 309.2 million as of June 30, 2024[24] - Current assets decreased by approximately RMB 49.1 million to about RMB 219.5 million, with a current ratio of approximately 2.3 times[25] - The debt-to-equity ratio remained stable at 0.01 times as of June 30, 2024[26] - The group had a total employee cost of approximately RMB 81.7 million for the six months ended June 30, 2024, compared to RMB 70.4 million for the same period in 2023, reflecting an increase of about 18.5%[34] - As of June 30, 2024, the group employed 443 full-time employees, up from 412 as of December 31, 2023, indicating a growth of approximately 7.5% in workforce size[34] - The company reported a payment of RMB 27,201,000 for share repurchases, reflecting a commitment to returning value to shareholders[64] - The company reported a net increase in cash and cash equivalents of RMB 8,196,000, down from RMB 50,053,000 in the prior year, reflecting a tighter cash flow situation[64] - The total cash and cash equivalents at the end of the period reached RMB 309,212,000, compared to RMB 285,406,000 at the end of June 2023, showing a year-over-year increase of 8.3%[64] Shareholder Information and Governance - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous period, as capital expenditures are focused on developing new games and promoting existing ones[37] - The company has adopted the corporate governance code as per the listing rules since its listing date, ensuring effective accountability[42] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2024[43] - The independent auditor has conducted a review of the interim financial information in accordance with the relevant standards[44] - The company will continue to review its governance practices to maintain high standards[42] - The board believes that the current structure allows for effective management and operation despite deviations from certain governance codes[42] Investments and Acquisitions - The company invested RMB 28,732,000 in intangible assets during the period, up from RMB 24,418,000 in the same period last year, indicating ongoing investment in technology and development[64] - The company made an investment of RMB 24,000,000 in an associate company, marking a new strategic investment initiative[64] - The company invested RMB 24,000,000 in a private entity in mainland China, reflecting its strategy to expand its investment portfolio[86] Employee and Management Compensation - Total remuneration for key management personnel for the six months ended June 30, 2024, was RMB 2,828,000, down 16.4% from RMB 3,385,000 in the previous year[97] - The company adopted a share incentive plan on December 15, 2023, allowing for the purchase of up to 6,900,000 shares, representing 5% of the issued share capital[98] - No rewards were granted under the share incentive plan as of June 30, 2024, but the trustee purchased 6,752,000 shares at a total cost of HKD 29,914,000 (approximately RMB 27,201,000)[98] - The company plans to grant a total of 4,742,928 shares to 61 participants after June 30, 2024, under the share incentive plan[98]
望尘科技控股(02458) - 2024 - 中期业绩