Financial Performance - The total revenue for the year 2024 reached approximately RMB 776 million, representing a significant increase compared to the previous year[10]. - Gross profit increased by 20.7% to approximately RMB 416 million, up from around RMB 345 million[10]. - Net profit rose by 13.3% to approximately RMB 84.15 million, compared to about RMB 74.24 million in the previous year[10]. - The company's revenue for the year reached RMB 776 million, representing a year-on-year growth of 22.5%[17]. - Gross profit recorded RMB 416 million, an increase of 20.7% compared to RMB 345 million in the same period last year[17]. - Net profit increased from approximately RMB 74.24 million to about RMB 84.15 million, a year-on-year increase of 13.3%[17]. - Gross profit margin decreased to 53.6% in 2024 from 54.4% in 2023, while net profit margin also declined to 10.8% from 11.7%[26]. - The company's operating profit before tax was RMB 85.5 million, with a tax expense of RMB 1.4 million, resulting in a net profit of RMB 84.1 million for 2024[25]. Game Development and Market Response - The new game "MLB Peak Showdown" achieved a strong market response, ranking first in the free download chart on the Apple Store in mainland China within the first three days of launch[9]. - The game "Best Eleven - Champion Club" maintained a stable user base and revenue scale, contributing to significant user retention and acquisition improvements[8]. - The new baseball game "Baseball Master" saw over 20 times revenue growth year-on-year, with over 2 million new users added[8]. - The core game "Best Club" saw significant growth in user and payment scale, supported by strategic collaborations with renowned football stars and teams[16]. - The launch of the new game "NBA Peak Showdown" performed strongly, contributing to revenue growth[28]. Research and Development - Research and development expenses increased by 22.4% to approximately RMB 1.337 billion, up from about RMB 1.092 billion in the previous year[10]. - Research and development expenditure rose to RMB 133.7 million by the end of 2024, reflecting the company's commitment to AI technology[18]. - The company introduced advanced AIGC technology, Arena4D, which significantly improved the realism of player movements and overall gaming experience[11]. - The company is set to enhance its AI capabilities in gaming, with plans to develop in-game AI agents to improve realism and user experience[13]. - The company has established a comprehensive AIGC+ gaming technology layout, covering content production, user experience, and operational maintenance[19]. Operational Strategy and Expansion - The company successfully expanded into multiple potential regions, enhancing profitability and laying a solid foundation for long-term development[8]. - The company plans to optimize operations in regions such as Hong Kong, South Korea, and Japan to enhance revenue scale in 2025[22]. - The company aims to strengthen its market share in North America through localized operations and enhanced user experiences[22]. - The company plans to launch the derivative game "Best 11 - Champion Club" mini-game version 1.0 in 2025, aiming to create additional profit growth[12]. - The upcoming game "Code: Fishing Master" is expected to begin external testing in Q2 2025, featuring advanced physics engines and realistic modeling[12]. Financial Management and Resources - The cost of revenue for 2024 was RMB 360.0 million, representing 46.4% of total revenue, compared to RMB 289.0 million or 45.6% in 2023[25]. - The company achieved a return on equity of 22.3% for both 2024 and 2023, indicating stable performance in shareholder returns[26]. - Total assets increased by approximately RMB 104.2 million or 19.8% to RMB 631.6 million as of December 31, 2024[38]. - Cash and cash equivalents increased to approximately RMB 377.7 million as of December 31, 2024, compared to RMB 300.4 million as of December 31, 2023[39]. - Operating cash flow increased by approximately RMB 78 million to approximately RMB 176.3 million for the year ending December 31, 2024, mainly due to an increase in pre-tax profit[41]. Employee and Management Structure - 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[51]. - The group employed 491 full-time employees as of December 31, 2024, compared to 412 in 2023, indicating a growth in workforce[51]. - The company has established rules and procedures regarding recruitment, promotion, compensation, and benefits to enhance employee retention[51]. - The company has adopted stock option and share incentive plans to motivate and reward its directors and employees[51]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective governance[192]. Shareholder and Corporate Governance - 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[81]. - The company repurchased a total of 32,800 shares at a total cost of approximately HKD 130,636 during the year ended December 31, 2024[90]. - The company has no bank borrowings as of December 31, 2024, consistent with the previous year[87]. - The company has a significant concentration of ownership among major shareholders, with the top three shareholders holding over 60% of the total shares[142]. - The independent auditor for the group's financial statements for the year was Deloitte, which will be reappointed at the 2025 annual general meeting[187]. Compliance and Regulatory Matters - The company has received confirmation from its independent auditors regarding the compliance of related party transactions with the listing rules[166]. - The independent non-executive directors have confirmed that the ongoing related party transactions were conducted based on the relevant provisions of the contractual arrangements[170]. - The company has not faced any intervention or obstruction from Chinese regulatory authorities regarding its operations through the Chinese operating entity[158]. - The company will closely monitor the implementation and compliance of the contractual arrangements to mitigate associated risks[160]. - The contractual arrangements are considered legal and binding according to the advice of the company's legal counsel[160].
望尘科技控股(02458) - 2024 - 年度财报