Financial Performance - For the six months ended June 30, 2024, customer contract revenue was RMB 2,271.9 million, an increase of 65.3% compared to RMB 1,374.6 million for the same period in 2023[4]. - Gross profit for the same period was RMB 1,141.0 million, up 61.4% from RMB 706.9 million in the prior year[4]. - Profit for the period reached RMB 387.6 million, representing a 28.2% increase from RMB 302.3 million in the previous year[4]. - Profit attributable to equity shareholders was RMB 224.7 million, a rise of 21.3% compared to RMB 185.3 million for the same period in 2023[4]. - Adjusted EBITDA for the six months was RMB 448.5 million, an increase of 29.2% from RMB 347.0 million in the prior year[4]. - Basic earnings per share for the period were RMB 0.20, compared to RMB 0.16 in the same period last year[5]. - The company reported a total operating profit of RMB 366.6 million, up from RMB 277.5 million in the previous year[5]. - Net profit for the same period was RMB 388 million, an increase of 28% year-on-year[12]. - The gross profit margin decreased from 51.4% for the six months ended June 30, 2023, to 50.2% for the same period in 2024[31]. Revenue Breakdown - Total revenue for the first half of 2024 reached RMB 2.272 billion, representing a year-on-year growth of 65%[12]. - Revenue from the social business segment was RMB 2.070 billion, with a year-on-year growth of 67%[12]. - The innovative business segment generated revenue of RMB 202 million, marking a 54% increase year-on-year[12]. - The flagship games segment generated a total revenue of RMB 387 million, reflecting a remarkable year-on-year growth of 393%[17]. - The core product (Mico World) in the MENA region saw a business scale increase of approximately 44% year-on-year[12]. Cost and Expenses - The company's cost of revenue for the six months ended June 30, 2024, was RMB 1,130.9 million, reflecting a 69.4% increase from RMB 667.7 million in the same period last year[25]. - The cost of revenue for the social business was RMB 1,046.1 million, a 61.1% increase from RMB 649.5 million year-on-year, mainly due to increased share of revenue to streamers and employee benefits[26]. - Sales and marketing expenses increased by 95.3% to RMB 481.6 million for the six months ended June 30, 2024, compared to RMB 246.6 million for the same period in 2023[32]. - Research and development expenses rose by 20.1% to RMB 163.9 million for the six months ended June 30, 2024, from RMB 136.5 million for the same period in 2023[33]. Cash Flow and Assets - Operating cash flow reached RMB 359 million, showing a significant increase of 103% year-on-year[12]. - Total assets increased from RMB 2,790.9 million as of December 31, 2023, to RMB 2,999.1 million as of June 30, 2024[43]. - Cash and cash equivalents rose to RMB 1,489.2 million as of June 30, 2024, up from RMB 1,386.3 million as of December 31, 2023[44]. - Operating cash flow increased to RMB 370.7 million for the six months ended June 30, 2024, compared to RMB 181.9 million for the same period in 2023[44]. Shareholder Information - The company has granted a total of 80,000,000 share options to 32 eligible individuals, with performance-linked vesting conditions[8]. - Mr. Liu Chunhe holds 238,706,646 shares, representing 20.04% of the total shares[57]. - Mr. Li Ping owns 73,121,774 shares, accounting for 6.14% of the total shares[60]. - The total number of issued shares as of the last practicable date is 1,191,216,000[61]. Strategic Initiatives - The company is focusing on expanding its MICO social business segment[9]. - The company plans to continue its "Middle East incubation, global replication" strategy, focusing on the MENA market to optimize products and services[19]. - The company aims to launch the HeeSay online community in 2024, targeting the global LGBTQ+ audience and enhancing brand influence through online and offline activities[20]. - The company plans to pursue strategic investments or acquisitions to create synergies within its business, focusing on companies with competitive advantages in technology and data[49]. Corporate Governance - The company has complied with the principles and provisions of the corporate governance code during the reporting period[124]. - The board has resolved not to declare an interim dividend for the six months ended June 30, 2024[126]. Acquisitions - The company signed a share purchase agreement to acquire NBT Social Networking Inc. for a total consideration of HKD 1,982,658,000 (approximately RMB 1,809,572,000), which includes cash consideration of HKD 993,790,000 (approximately RMB 907,032,000) and share consideration of HKD 988,868,000 (approximately RMB 902,540,000)[127].
赤子城科技(09911) - 2024 - 中期财报