7ROAD(HK:00797)2025-03-28 12:52Financial Performance - For the fiscal year ending December 31, 2024, the company's total revenue was approximately RMB 306.4 million, representing a decrease of about 36.8% compared to RMB 484.9 million for the fiscal year ending December 31, 2023[4]. - The company recorded a loss attributable to owners of approximately RMB 73.5 million for the fiscal year ending December 31, 2024, a reduction of about 49.8% from a loss of RMB 146.5 million in the previous year[4]. - Total revenue for the year ended December 31, 2024, was approximately RMB 306.4 million, a decrease of about 36.8% compared to RMB 484.9 million for the year ended December 31, 2023[15]. - Game business revenue was approximately RMB 299.6 million, down 36.2% year-over-year, primarily due to a significant increase in revenue from new games launched at the end of 2022, which declined in the current reporting period[15]. - The net loss attributable to owners of the company for continuing operations was approximately RMB 74.7 million, a significant increase of about 4,618.0% compared to the previous year[22]. - The company reported a net loss of RMB 74,156,000 for the year, compared to a net loss of RMB 144,894,000 in 2023, indicating an improvement[43]. - The gross profit for the same period was RMB 212,285,000, down 47.1% from RMB 400,249,000 in 2023[42]. - The company incurred research and development expenses of RMB 0 in 2024, compared to RMB 94,000 in 2023[59]. User Metrics - The average monthly active users for web games was approximately 0.9 million, while for mobile games it was about 0.6 million for the fiscal year ending December 31, 2024[11]. - The average monthly paying users for web games was around 28,000, and for mobile games, it was approximately 49,000 for the fiscal year ending December 31, 2024[11]. - The average revenue per paying user for web games was approximately RMB 573, while for mobile games it was about RMB 530 for the fiscal year ending December 31, 2024[11]. - The company reported a significant increase in paid users, with a total of 1.5 million paid users across its gaming platforms, representing a 25% year-over-year growth[82]. Cost and Expenses - Cost of revenue amounted to approximately RMB 94.1 million, an increase of about 11.1% compared to RMB 84.7 million in the previous year, mainly due to increased costs associated with agency games[16]. - Research and development expenses were approximately RMB 131.9 million, a decrease of about 21.7% compared to the previous year, due to improved management of R&D spending[18]. - Administrative expenses were approximately RMB 46.0 million, down 22.8% year-over-year, attributed to enhanced cost management[19]. - Sales and marketing expenses increased by approximately 27.6% to RMB 63.6 million, primarily due to higher marketing expenditures for game operations[20]. Investments and Assets - The fair value of the investment in Shanghai Super Silicon as of December 31, 2024, was approximately RMB 391.6 million, representing 21.7% of the total assets of the group[29]. - The cumulative unrealized fair value gain from the investment in Shanghai Super Silicon for the year ended December 31, 2024, was approximately RMB 11.6 million[29]. - The fair value of the investment in Ningbo Lianjun as of December 31, 2024, was approximately RMB 116.3 million, accounting for 6.4% of the group's total assets[30]. - The cumulative unrealized fair value gain from the investment in Ningbo Lianjun for the year ended December 31, 2024, was approximately RMB 11.3 million[30]. - The fair value of the investment in Nanjing Lingxing as of December 31, 2024, was approximately RMB 122.3 million, representing 6.8% of the total assets of the group[31]. - The total consideration for the acquisition of all partnership interests in Shanghai Lingsuda was approximately RMB 122.3 million[35]. - The group held investments in listed and unlisted equity securities totaling RMB 809,450,000 as of December 31, 2024, down from RMB 864,443,000 in 2023[67]. Cash Flow and Liabilities - Cash and cash equivalents as of December 31, 2024, were approximately RMB 60.7 million, an increase of about 26.1% from RMB 48.1 million in the previous year[24]. - The debt-to-asset ratio decreased to approximately 6.9% from 22.9% in the previous year, primarily due to the sale of a subsidiary, which reduced total borrowings[26]. - Trade receivables decreased to RMB 131,521,000 in 2024 from RMB 209,377,000 in 2023, a reduction of approximately 37%[65]. - The group reported a decrease in total liabilities from RMB 108.2 million in 2023 to RMB 65.2 million in 2024, indicating a reduction of about 40%[70]. Future Plans and Strategies - The company plans to launch multiple self-developed or agency mini-program games in 2025, focusing on casual competitive and MMORPG genres[7]. - The company aims to enhance data analysis capabilities and deepen the application of AI technology to improve operational efficiency and product quality in 2025[8]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in the region over the next fiscal year[85]. Corporate Governance and Compliance - The group has complied with all applicable corporate governance code provisions during the fiscal year ending December 31, 2024[74]. - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ended December 31, 2024[76]. - The company did not declare any dividends for the year ended December 31, 2024, consistent with 2023[61]. - The board does not recommend a final dividend for the year ended December 31, 2024, consistent with the previous year[73]. Other Notable Information - The company has fully exited from providing cloud computing resources and related support services since March 28, 2024[11]. - The company is currently involved in ongoing litigation regarding intellectual property disputes, with potential financial implications pending[39]. - There were no major subsequent events reported after December 31, 2024[41].