7ROAD(HK:00797)2025-04-17 14:45Financial Performance - The company reported a total revenue of HK$1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[10]. - The company reported a significant increase in revenue, achieving a total of RMB 1.5 billion, representing a 25% year-over-year growth[21]. - For the year ended 31 December 2024, the Company generated total revenue of approximately RMB306.4 million, representing a decrease of approximately 36.8% compared to RMB484.9 million in 2023[26]. - The Company recorded a loss attributable to owners of the Company of approximately RMB73.5 million in 2024, representing a decrease of approximately 49.8% compared to 2023[26]. - The gross profit margin for 2024 was 69.3%, with gross profit amounting to RMB212.3 million, a decrease of approximately 47.0% from RMB400.2 million in 2023[26]. User Engagement - Monthly Active Users (MAUs) reached 5 million, with an average of 1.2 million Monthly Paying Users (MPUs), indicating a 20% growth in user engagement[9]. - User data showed a total of 10 million active users, an increase of 15% compared to the previous quarter[21]. - For the year ended 31 December 2024, the average MAUs for web games was approximately 0.9 million, while mobile games had an average MAUs of approximately 0.6 million[95]. - The average MPUs for web games was approximately 28,000, and for mobile games, it was approximately 49,000[95]. Product Development and Innovation - The company plans to launch three new mobile games in 2025, aiming to capture an additional 10% market share in the mobile gaming sector[7]. - The company has allocated HK$50 million for research and development in new technologies, focusing on augmented reality features for upcoming games[3]. - Research and development expenses increased to RMB 200 million, accounting for 13% of total revenue, reflecting the company's commitment to innovation[21]. - The Company focused on competitive leisure games and MMORPGs as its development direction in 2024, actively capturing new market opportunities[29]. - The mini-program game "I'm MT" was launched in May 2024 and ranked among the top sellers of WeChat mini-program games in its first month[35]. Strategic Partnerships and Acquisitions - A strategic partnership was established with a leading technology firm to enhance game development capabilities and reduce time-to-market by 25%[6]. - The company is exploring potential acquisitions to enhance its technology capabilities, with a budget of up to RMB 500 million allocated for this purpose[21]. - An acquisition of a smaller gaming studio was completed for HK$300 million, expected to contribute an additional HK$100 million in annual revenue[4]. - A new strategic partnership was formed with a leading tech firm, aimed at co-developing advanced gaming technologies[21]. Market Expansion - The company is targeting a revenue growth of 20% for the next fiscal year, supported by new product launches and market expansion initiatives[5]. - Market expansion efforts included entering three new provinces in China, targeting an additional 1 million users[21]. - The company is exploring international markets, with "DDTank Adventure" in Europe and "Wartune H5" in the Asia-Pacific region expected to launch in 2025[42]. Corporate Governance - The company is committed to enhancing its corporate governance practices in line with the latest regulations, ensuring transparency and accountability[1]. - The Board consists of six Directors, ensuring a balance of skills and experience appropriate for the Group's business requirements[171]. - The Board is responsible for corporate governance and has implemented sound policies to maintain high standards of integrity, accountability, and transparency[168]. - The Company has complied with the applicable code provisions of the CG Code during the year ended December 31, 2024[169]. Management Team - Mr. Liu Zhizhen will be appointed as the chief executive officer of the Company effective March 8, 2024, and has over 20 years of experience in game R&D[60]. - The Company is expanding its management team with new appointments, including Mr. Liu as CEO and Mr. Yang as CFO effective January 26, 2025[63]. - The Group's management team includes professionals with qualifications such as CPA and CFA, enhancing financial oversight[67][71]. Financial Oversight and Risk Management - The Company is committed to maintaining strong financial oversight with experienced directors in key positions[64]. - The Group's management has implemented strategies to enhance data analytics capabilities and improve player experience to mitigate identified risks[92]. - The company provided counter-guarantees for the borrowings of Shanghai Lingsu, mitigating credit risk associated with the guarantees[158]. Employee Management - The company had 247 full-time employees as of December 31, 2024, with 71% in R&D, 12% in operations, and 17% in administration[163]. - Employee remuneration for the year ended December 31, 2024, amounted to approximately RMB 125.4 million, including salaries, bonuses, and other benefits[164]. - Total employee compensation for the year ended December 31, 2024, was approximately RMB 125.4 million, including salaries, bonuses, share-based compensation, retirement plan contributions, and other employee benefits[167].