BAIOO(HK:02100)2024-08-29 10:30Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 272,284 thousand, a decrease of 39.6% compared to RMB 450,609 thousand in the same period last year[1]. - Gross profit for the same period was RMB 125,490 thousand, down 25.8% from RMB 169,229 thousand year-on-year[1]. - Adjusted net loss increased by 209.9% to RMB 9,770 thousand from RMB 3,153 thousand in the previous year[1]. - The net loss for the six months ended June 30, 2024, was RMB 14.9 million, compared to a net loss of RMB 19.9 million in the same period last year[10]. - The company reported a net loss of RMB 14.9 million for the first half of 2024, compared to a net loss of RMB 19.9 million in the same period of 2023[41]. - Adjusted net loss for the six months ended June 30, 2024, was RMB 9.8 million, an increase of 206.3% from RMB 3.2 million for the same period in 2023[25]. - Basic loss per share improved to RMB (0.0055) in 2024 from RMB (0.0075) in 2023, indicating a 26.7% reduction in loss per share[70]. - The company reported a loss attributable to shareholders of RMB 14,908,000 for the six months ended June 30, 2024, compared to a loss of RMB 19,988,000 for the same period in 2023, representing a 25.8% improvement[70]. User Engagement and Product Development - The company maintained a focus on user-centric R&D and continued to enhance its product matrix, particularly in female-oriented and pet collection games[3]. - The core self-developed IP "Aoki Legend" showed continuous revenue growth, demonstrating strong vitality with new content updates receiving positive player feedback[3]. - The company launched the "AI Smart Assistant" in the game "Aobi Island: Dream Kingdom," enhancing user experience and reducing labor costs in customer service[4]. - The company aims to integrate traditional Chinese cultural elements into its games, enhancing user engagement and market reputation[4]. - Future strategies include a continued focus on AI technology to enhance product development and operational capabilities[6]. Market and Industry Trends - The gaming industry is experiencing a gradual recovery, supported by improved policies and a stable market environment, creating new growth opportunities for companies with strong R&D capabilities[5]. - The company plans to accelerate its international market expansion, with multiple products currently in active development and testing[6]. Operational Metrics - The average quarterly active accounts as of June 30, 2024, were approximately 5.7 million, a decrease of 24.0% compared to 7.5 million in the same period last year[8]. - The average quarterly paying accounts as of June 30, 2024, were approximately 0.8 million, down 33.3% from 1.2 million year-over-year[8]. - The average revenue per paying account for the six months ended June 30, 2024, was approximately RMB 164.6, down 12.8% from RMB 188.7 year-over-year[8]. Expenses and Cost Management - Research and development expenses for the six months ended June 30, 2024, were RMB 99.6 million, a decrease of 21.2% from RMB 126.4 million year-over-year[17]. - Selling and marketing expenses for the six months ended June 30, 2024, were RMB 20.2 million, down 50.1% from RMB 40.5 million in the previous year[15]. - Administrative expenses for the six months ended June 30, 2024, were RMB 32.0 million, a decrease of 23.6% from RMB 41.9 million year-over-year[16]. - Employee costs for the first half of 2024 amounted to approximately RMB 151.6 million, representing 55.7% of the company's revenue, compared to RMB 206.4 million and 45.8% in the same period of 2023[35]. - Distribution costs and payment processing fees dropped to RMB 97,219,000 in 2024 from RMB 210,369,000 in 2023, reflecting a decrease of 53.8%[60]. Assets and Liabilities - Total liabilities as of June 30, 2024, were RMB 275.1 million, with a debt-to-asset ratio of 15%, up from 14% as of December 31, 2023[27]. - Cash and cash equivalents as of June 30, 2024, totaled RMB 821.2 million, down from RMB 966.0 million as of December 31, 2023[28]. - Non-current assets increased to RMB 628.5 million as of June 30, 2024, from RMB 585.2 million as of December 31, 2023[42]. - Current assets decreased to RMB 1,258.1 million as of June 30, 2024, from RMB 1,334.9 million as of December 31, 2023[42]. - Total liabilities decreased to RMB 254.8 million as of June 30, 2024, from RMB 275.1 million as of December 31, 2023[43]. Dividends and Shareholder Returns - The company approved a special dividend of HKD 0.012 per share for the year ending December 31, 2023, equivalent to approximately RMB 0.011[37]. - The company declared a special dividend of HKD 0.012 per ordinary share for the six months ended June 30, 2024, down from HKD 0.015 in 2023, resulting in total dividends of approximately RMB 31,453,000 compared to RMB 39,038,000 in the previous year, a decrease of 19.4%[72][73]. - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[81]. Compliance and Financial Reporting - The audit committee reviewed the interim financial statements and confirmed compliance with International Accounting Standard 34 for the six months ended June 30, 2024[77]. - The group will adopt revised International Financial Reporting Standards starting January 1, 2024, with no significant impact expected on the group's financial statements[46]. - The group anticipates that the new standards effective from January 1, 2025, and January 1, 2026, will not have a significant impact on its interim consolidated financial information[47].