Financial Performance - The total revenue for the year ended December 31, 2024, reached approximately RMB 776 million, representing a significant increase compared to the previous year[11]. - Gross profit increased by 20.7% to approximately RMB 416 million, up from about RMB 345 million[11]. - Net profit rose by 13.3% to approximately RMB 84.15 million, compared to about RMB 74.24 million for the year ended December 31, 2023[11]. - The company's revenue for the year reached RMB 776 million, representing a year-on-year growth of 22.5%[18]. - Gross profit recorded RMB 416 million, an increase of 20.7% compared to RMB 345 million in the same period last year[18]. - Net profit increased from approximately RMB 74.24 million to approximately RMB 84.15 million, a year-on-year increase of 13.3%[18]. - Gross profit margin decreased to 53.6% in 2024 from 54.4% in 2023, while net profit margin fell to 10.8% from 11.7%[27]. Research and Development - The company’s R&D expenditure increased by 22.4% to approximately RMB 1.337 billion, up from about RMB 1.092 billion in the previous year[11]. - Research and development expenditure increased to RMB 133.7 million by the end of 2024, reflecting the company's commitment to AI technology[19]. - Research and development expenses for 2024 were RMB 133.7 million, maintaining a consistent 17.2% of total revenue[26]. - Research and development expenses increased by approximately RMB 24.5 million or 22.4% to about RMB 133.7 million for the year ending December 31, 2024, due to an increase in R&D personnel[37]. Market Expansion and User Growth - The core game "Best Eleven - Champion Club" maintained stable active user and revenue scales, contributing to user retention and acquisition[9]. - The newly launched game "MLB Peak Showdown" achieved first place in the free download chart on the Apple Store in mainland China within three days of its release[10]. - The company successfully expanded into multiple potential regions, resulting in significant profit growth and a solid foundation for long-term development[9]. - The company actively explored the Asian market to further expand its user base, achieving over 2 million new users for the game "Baseball Master" with a revenue increase of over 20 times compared to 2023[9]. - The game "NBA Peak Showdown" topped the Apple App Store free download chart shortly after its launch, indicating strong market reception[18]. Technology and Innovation - The application of AIGC technology, particularly Arena4D, has significantly improved player experience by enhancing the realism of player movements and actions[12]. - The company is set to introduce AI agents in games to enhance realism and user experience, in line with the "AI+" initiative proposed in the 2024 government work report[14]. - The company has established a full-chain technology layout for "AIGC + games," enhancing content production and user experience[20]. Operational Strategy - The company plans to optimize operations in Hong Kong, South Korea, and Japan to enhance revenue scale in 2025[23]. - The company aims to strengthen its market share in North America through localized operations and enhanced user experiences[23]. - The company plans to launch the derivative game "Best 11 - Champion Club" mini-game version 1.0 in 2025, aiming for additional profit growth[13]. - The company is preparing to test the derivative mini-game version 1.0 in the first half of 2025[23]. Financial Management and Governance - The company achieved a return on equity of 22.3% in both 2024 and 2023, indicating stable profitability[28]. - The company has no bank borrowings as of December 31, 2024, consistent with the previous year[88]. - The company has complied with all relevant laws and regulations without any significant violations during the year[76]. - The company has adopted a standard code for directors' securities trading, and all directors confirmed compliance for the year ending December 31, 2024[192]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective governance[193]. Shareholder Information - The total employee cost for the year ending December 31, 2024, was approximately RMB 199.4 million, an increase from RMB 144.6 million in 2023[52]. - The group had 491 full-time employees as of December 31, 2024, up from 412 in 2023[52]. - The company did not declare any final dividend for the year ended December 31, 2024, compared to a dividend of RMB 0.1882 per share in 2023[82]. - The company has a share option plan, a 2023 share incentive plan, and an executive shareholding incentive plan in place[93]. - The company has no distributable reserves available for dividend distribution as of December 31, 2024, the same as in 2023[85]. Contractual Arrangements and Compliance - The company has established a contractual arrangement to gain actual control and receive the majority of economic benefits from the operations of its Chinese entities, including Wangchen Technology and Moge Technology[148]. - The exclusive business cooperation agreements stipulate that the foreign-owned enterprise will provide services such as technical support and software development, with service fees amounting to 100% of the combined profits of Wangchen Technology and Moge Technology, after deducting any accumulated losses and operating costs from the previous fiscal year[152]. - The company is closely monitoring the implementation and compliance of the contractual arrangements to mitigate associated risks[161]. - The independent auditor has verified that the disclosed continuing connected transactions also constitute related party transactions[168]. Global Offering and Fund Utilization - The company issued 12,420,000 shares in a global offering at a price of HKD 6.5 per share, raising approximately HKD 11.0 million net of related expenses[179]. - 30% of the net proceeds from the global offering, amounting to HKD 3,289,000, was allocated to renewing existing intellectual property licenses and acquiring additional licenses for mobile sports games[179]. - 35% of the net proceeds, amounting to HKD 3,838,000, was allocated to enhancing marketing efforts in China and overseas markets[179]. - 25% of the net proceeds, amounting to HKD 2,741,000, was allocated to strengthening the talent pool and R&D capabilities[179].
望尘科技控股(02458) - 2024 - 年度业绩