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[4] - Gross profit decreased by 13.9% to RMB 171,403,000 from RMB 199,168,000 year-on-year[4] - Adjusted net profit for the period was RMB 25,539,000, down 35.5% from RMB 39,625,000 in the previous year[4] - 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[7] - Net profit declined by approximately RMB 13.8 million or 35.1% to approximately RMB 25.5 million for the six months ended June 30, 2024[7] - Gross profit decreased by approximately RMB 27.8 million or 13.9% to approximately RMB 171.4 million for the six months ended June 30, 2024, with a gross margin decline from 56.2% to 54.3%[12] - Other income decreased by approximately RMB 2.7 million or 38.7% to approximately RMB 4.3 million, primarily due to a reduction in government grants by approximately RMB 3.7 million or 94.3%[14] - Adjusted net profit for the six months ended June 30, 2024, was approximately RMB 25.5 million, down from RMB 39.6 million in the same period of 2023[22] - 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%[57] - Basic earnings per share for the period was RMB 0.19, down from RMB 0.29 in the previous year[57] 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[4] - Research and development expenses increased by approximately RMB 8.6 million to approximately RMB 58.9 million due to the hiring of additional R&D personnel[7] - Research and development expenses increased by approximately RMB 8.6 million or 17.0% to approximately RMB 58.9 million, mainly due to an increase in employee benefits and salaries for R&D personnel[17] - The company plans to further enhance its talent pool and R&D capabilities, allocating 25% of the net proceeds for this purpose[37] Game Development and Partnerships - The company has established long-term partnerships with international sports leagues and top football clubs, enhancing its game offerings[5] - The game "Best Eleven - Champion Club" celebrated its fourth anniversary, introducing new gameplay features that significantly increased monthly revenue[5] - The core game "Best Club" has become highly competitive in the mobile football game market in mainland China, with a substantial increase in paying users[5] - The company signed licensing agreements with the German national team and UEFA Champions League semi-final teams, enhancing game content and brand recognition[5] - The company aims to continue strengthening collaborations with renowned athletes to boost active and paying user numbers[5] - The launch of the baseball game "Baseball Master" in mainland China in July 2024 marks it as the only licensed baseball game available in the region[8] - The basketball game "NBA Peak Showdown" was officially launched in mainland China in August 2024, utilizing upgraded motion capture and AI technology[8] - The game "Code: Fishing Master" is expected to enter the testing phase in Q4 2024, with a potential release in the first half of 2025[8] Financial Position and Cash Flow - Cash and cash equivalents amounted to approximately RMB 309.2 million as of June 30, 2024[22] - Current assets decreased by approximately RMB 49.1 million to approximately RMB 219.5 million as of June 30, 2024, with a current ratio of approximately 2.3 times[23] - The debt-to-equity ratio remained stable at 0.01 times as of June 30, 2024[24] - 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, representing an increase of about 18.5%[32] - 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[32] - The total amount of net proceeds utilized as of June 30, 2024, was consistent with the proposed allocation outlined in the prospectus[38] - The company reported a profit of RMB 39,313 thousand for the six months ended June 30, 2024, compared to a profit of RMB 25,546 thousand in the previous period[60] - The company’s reserves decreased to RMB 304,733 thousand from RMB 332,428 thousand, indicating a reduction in retained earnings and reserves[60] - The company reported trade payables of RMB 114,562,000 as of June 30, 2024, a decrease from RMB 123,880,000 at the end of 2023[88] Shareholder Information and Governance - The company does not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous period, as it focuses on capital expenditures for developing new games and promoting existing ones[35] - The company has adopted the corporate governance code as per the listing rules since its listing date, ensuring effective accountability[40] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2024[41] - The board believes that the dual role of Mr. Jia as both chairman and CEO is in the best interest of the company due to his extensive experience in the online gaming industry[40] - The company has established a strong internal control system and risk management processes as part of its governance practices[41] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[34] - The company has not disclosed any changes in director information since the last annual report[50] - The company is under the control of several major shareholders, with significant stakes held by entities like Crystal Pleasant and Suzhou Fude Bo[48] - The company has a structured ownership with various entities controlling significant percentages of shares, indicating a concentrated ownership structure[49] Investment Activities - 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[62] - The company made an investment of RMB 24,000,000 in an associate company, marking a new strategic investment initiative[62] - The company repurchased shares amounting to RMB 27,201,000 during the period, reflecting a commitment to returning value to shareholders[62] - The company’s investment in financial assets at fair value through profit or loss was RMB 14,254,000, a decrease from RMB 74,302,000 in the previous year, indicating a shift in investment strategy[62] Taxation and Financial Liabilities - The income tax expenses decreased by approximately RMB 3.9 million or 98.7% to approximately RMB 50,000, mainly due to a reduction in income tax from subsidiaries[21] - The effective corporate income tax rate for the company’s operations in mainland China was 25%, with certain subsidiaries benefiting from reduced rates of 15% and 12.5%[76] - The company did not recognize any deferred tax liabilities related to withholding tax for the six months ended June 30, 2024, as there were no distributions to foreign investors[77] - The fair value of financial liabilities measured at amortized cost is considered to be similar to their carrying amounts as of June 30, 2024, and December 31, 2023[93]
望尘科技控股(02458) - 2024 - 中期财报