QINGCI GAMES(06633)2025-04-16 08:36Financial Performance - Total revenue for 2024 reached RMB 627.96 million, a decrease of 31% compared to RMB 905.74 million in 2023[6] - Gross profit for 2024 was RMB 363.12 million, down 35% from RMB 557.88 million in 2023[6] - Net profit attributable to equity holders was RMB 51.12 million, reversing a loss of RMB 37.37 million in the previous year[6] - The group reported a revenue of RMB 628 million for the reporting period, a decrease of 31% compared to the previous year, but achieved a profit of approximately RMB 51.12 million, reversing last year's loss[20] - The company's revenue for the year ending December 31, 2024, is projected to be approximately RMB 628.0 million, a decrease of 30.7% compared to RMB 905.7 million for the year ending December 31, 2023[32] - Game operation revenue is anticipated to decrease by 32.1% to approximately RMB 593.4 million for the year ending December 31, 2024[34] - Revenue from self-developed games is expected to decline by 28.1% to approximately RMB 365.2 million, primarily due to decreased income from "The Strong Snail" in various regions[37] - Revenue from licensed games is projected to decrease by 37.6% to approximately RMB 228.3 million, mainly due to reduced income from "New Sword and Fairy" and "Cardcaptor Sakura" in mainland China[37] User Metrics - Average Monthly Active Users (MAU) decreased by 5% to 2.36 million from 2.48 million in 2023[7] - Average Monthly Paying Users (MPU) dropped by 43% to 228,000 from 401,000 in 2023[7] - As of December 31, 2024, the total registered players reached 98.28 million, an increase of 11.24% year-on-year, while monthly active users decreased by 4.82%[21] - The average monthly paying users dropped by 43.24% to approximately 227,800, with ARPPU at RMB 265, down 12.16% year-on-year[21] - The player community has grown to 15.8427 million, an increase of 18.59% year-on-year[29] Game Performance - Revenue from the flagship self-developed game "The Strongest Snail" reached approximately RMB 340 million during the reporting period[11] - Cumulative revenue for "The Strongest Snail" exceeded RMB 3.629 billion since its launch, with over 29.05 million registered players[11] - The game "Lantern and Dungeon" saw a 43% revenue increase compared to the previous year following a major content update[12] - "New Legend of Sword and Fairy" recorded revenue of approximately RMB 976 million and topped the iOS free game chart after its launch[24] - "Magic Card Girl Sakura: Memory Key" achieved revenue of approximately RMB 229.9 million and reached the top of the iOS free game chart in multiple regions[25] - "Fat Goose Gym" generated revenue of approximately RMB 597.4 million and topped both iOS and Google Play free game charts in Japan[25] Strategic Initiatives - The company plans to expand its global footprint while enhancing the innovation and quality of self-developed games[10] - The company aims to address rising user acquisition costs and increasing player standards in the competitive gaming market[9] - The group is focusing on the development of "Project E," an innovative SLG game expected to expand testing in 2025, aiming to set new milestones for self-developed games[19] - The company plans to continue refining and actively advancing game reserves for testing and launch both domestically and internationally, with new titles like "Project W" and the Korean version of "The Strong Snail" expected to launch in 2025[31] Cost Management - The cost of revenue is expected to decrease by 23.9% to approximately RMB 264.8 million for the year ending December 31, 2024, down from RMB 347.9 million in 2023[38] - Commissions paid to distribution and payment channels are projected to decrease by 22.3% to approximately RMB 137.8 million, reflecting a reduction in game operation revenue[39] - Sales and marketing expenses reduced by 49.7% from approximately RMB 429.2 million for the year ended December 31, 2023, to approximately RMB 216.0 million for the year ended December 31, 2024, primarily due to decreased spending on certain game titles[43] Governance and Compliance - The company has established a financial risk management policy, which is detailed in the consolidated financial statements[71] - The company complies with various Chinese laws and regulations related to game publishing and operation, including but not limited to telecommunications services, game review, and privacy protection[78] - The company has a structured board with various committees, including a remuneration committee, audit committee, and nomination committee, as detailed in the corporate governance report[79] - The independent non-executive directors confirmed that the ongoing connected transactions are conducted in the ordinary course of business and on normal commercial terms[126] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to promoting a sustainable and environmentally friendly environment, implementing effective measures for resource utilization and waste reduction[77] - The company aims to become a recognized leader in ESG practices within the gaming industry, focusing on four key areas: Responsible Operations, Green Operations, Employee Care, and Social Contribution[181] - The company has set a target to achieve 100% compliance in waste disposal by 2030, emphasizing its commitment to environmental sustainability[181] - The company has established a clear and effective governance mechanism for ESG management, recognizing the benefits of board diversity in member nominations[178] Regulatory Compliance for Minors - The company has implemented a real-name registration system requiring players to use valid identity information for account creation, with non-verified players unable to log in to games[200] - Players under the age of eight are prohibited from making in-game purchases, and there are restrictions on gaming time for minors, allowing only 1 hour per day on specified days[200] - The company has strengthened user identity verification requirements to limit and manage gaming behavior of underage users, including playtime and spending limits[196] - The company adheres strictly to national laws and regulations regarding the prevention of minors' addiction to online games, implementing various measures to mitigate this issue[195]