创梦天地(01119) - 2024 - 年度业绩

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,513,644,000, a decrease of 21% compared to RMB 1,916,473,000 in 2023[3] - Gross profit for the same period was RMB 426,789,000, down from RMB 673,461,000, reflecting a decline in profitability[3] - The adjusted annual loss was RMB 30,322,000, a significant drop from a profit of RMB 139,597,000 in 2023[3] - Revenue for the year ended December 31, 2024, decreased by 21.0% to approximately RMB 1,513.6 million compared to RMB 1,916.5 million in 2023[16] - Game revenue contributed 96.2% of total revenue in 2024, down from 96.5% in 2023, with a decline from RMB 1,849.1 million to RMB 1,455.9 million, a decrease of 21.3%[17] - The annual loss increased from RMB 456.8 million in 2023 to RMB 544.6 million in 2024, with adjusted annual loss reported at RMB 30.3 million compared to an adjusted profit of RMB 139.6 million in 2023[30] - Adjusted EBITDA for 2024 was RMB 56.4 million, a decrease from RMB 308.8 million in 2023, reflecting operational challenges[32] - The company reported a net loss of RMB 544,604,000 for the year ending December 31, 2024[61] Game Development and Launches - The game "Subway Surfers" maintained a top ten position in revenue rankings, with a 40% increase in version payment rate, reaching a five-year high[6] - The newly launched game "Mecha Squad" achieved a cumulative global revenue of USD 1 billion, ranking in the top five for revenue in the mech shooting game category in China[6] - The self-developed game "Kara Bichu" was successfully launched globally on November 22, 2024, topping Steam's "New Releases" and "Top Free Games" charts within two hours[9] - The company plans to launch the mobile and console versions of "Kara Bichu" in 2025, aiming to expand its global market presence[9] - The game "Delta Action," co-developed with Tencent, surpassed 40 million registered users across PC and mobile platforms by September 2024[10] - The company has multiple signed overseas premium games in the pipeline, ensuring strong revenue growth for the upcoming years[7] - The launch of the game "Kara Bichu" has been recognized for its innovative integration of traditional Chinese culture, contributing to the company's cultural outreach efforts[14] - The company plans to launch multiple game iterations in 2025 to generate incremental revenue[62] - The company intends to strengthen partnerships to expand its existing game portfolio and launch new games in overseas markets[62] Financial Position and Liabilities - Total assets decreased to RMB 3,590,220,000 in 2024 from RMB 3,707,673,000 in 2023, a decline of approximately 3.2%[57] - The company’s total liabilities rose to RMB 2,134,852,000 in 2024 from RMB 1,964,446,000 in 2023, an increase of about 8.6%[57] - Total borrowings amounted to approximately RMB 1,070.1 million as of December 31, 2024, compared to RMB 966.4 million in 2023, with secured bank borrowings increasing from RMB 876.4 million to RMB 1,055.1 million[38][40] - The current ratio decreased to 0.90 as of December 31, 2024, down from 1.07 in 2023, indicating a decline in liquidity[40] - The debt ratio increased to 59.5% as of December 31, 2024, compared to 53.0% in 2023, reflecting a higher proportion of debt in the capital structure[40] - The company is expected to repay bank loans totaling RMB 1,080,341,000 in 2024 while obtaining new credit of RMB 1,118,738,000[63] - As of December 31, 2024, the company has an unused committed credit line of RMB 397,431,000, with RMB 60,000,000 drawn post-year-end[63] Cost Management and Expenses - Total cost of revenue for the year ended December 31, 2024, was RMB 1,086.9 million, a decrease of 12.6% from RMB 1,243.0 million in 2023, but the cost as a percentage of revenue increased from 64.9% to 71.8%[20] - Sales and marketing expenses decreased by 14.8% from RMB 230.6 million in 2023 to RMB 196.5 million in 2024, attributed to improved customer acquisition efficiency[21] - Research and development expenses decreased from RMB 240.0 million in 2023 to RMB 165.2 million in 2024, representing 10.9% of revenue, down from 12.5%[23] - Total expenses for cost of revenue, selling and marketing, general and administrative, R&D, and impairment of intangible assets amounted to RMB 1,584,974,000 in 2024, a decrease from RMB 1,845,918,000 in 2023[70] Impairment and Financial Losses - The net impairment loss of financial assets for the year ended December 31, 2024, was RMB 185.7 million, a decrease from RMB 232.3 million in 2023[25] - Fair value losses on financial assets measured at fair value through profit or loss increased from RMB 27.9 million in 2023 to RMB 81.4 million in 2024, primarily due to operational underperformance of certain investee companies and market volatility[26] - The impairment of investments in associates accounted for using the equity method rose significantly from RMB 19.4 million in 2023 to RMB 105.5 million in 2024, attributed to insufficient cash flow generation from existing businesses[27] - The total impairment loss on financial assets was RMB 185.7 million in 2024, down from RMB 232.3 million in 2023, indicating some improvement in asset quality[35] - The company recorded a significant increase in fair value losses on financial liabilities from RMB 10.99 million in 2023 to RMB 26.57 million in 2024[37] Shareholder and Governance Matters - The company did not recommend a final dividend for the year ended December 31, 2024, consistent with the previous year[47] - The company is actively engaging with potential investors to explore opportunities for share placement[63] - The company plans to continue monitoring and reviewing its corporate governance practices to ensure compliance with applicable codes[119] - The board of directors decided not to declare any dividends for the years ended December 31, 2024, and 2023[77] Cash Flow and Financial Management - As of December 31, 2024, the total cash and cash equivalents increased by 3.4% to approximately RMB 196.9 million from RMB 190.4 million as of December 31, 2023[38] - The company has unrestricted cash and cash equivalents of RMB 196,926,000 as of December 31, 2024[117] - The financial cost net amount for the company was RMB 106,164,000 in 2024, down from RMB 289,774,000 in 2023[72] - The interest expense for the 2028 convertible bonds was calculated at an effective annual rate of 20.20%[111] Asset Management - The carrying amount of intangible assets at the end of 2024 was RMB 1,085,942,000, compared to RMB 965,535,000 at the end of 2023, reflecting an increase in capitalized development costs[80] - Impairment losses on intangible assets amounted to RMB 9,972,000 for the year ended December 31, 2024, down from RMB 23,245,000 in 2023, indicating a reduction in impairment charges[83] - Trade receivables decreased to RMB 322,792,000 as of December 31, 2024, from RMB 546,401,000 in 2023, showing a significant reduction in outstanding receivables[84] - The expected credit loss provision for trade receivables was RMB 164,378,000 at the end of 2024, compared to RMB 177,141,000 at the end of 2023, indicating improved credit quality[90] - The company wrote off trade receivables amounting to RMB 180,804,000 during the year, attributed to deteriorating macroeconomic conditions affecting customer repayment capabilities[93] Future Outlook and Strategy - The company aims to improve operational efficiency and maintain cash inflow through strategic initiatives[62] - The company plans to continue optimizing its product portfolio and gradually terminate products that do not align with its future gaming business strategy[83] - The company is assessing the impact of newly issued accounting standards that will take effect after December 31, 2024[67]