CMGE(00302)2025-04-24 13:33Financial Performance - The company's revenue for 2024 reached RMB 1,930.1 million, a decrease of 26% compared to RMB 2,605.9 million in 2023[7]. - Gross profit for 2024 was RMB 603.1 million, down from RMB 943.1 million in 2023, reflecting a gross margin decline[7]. - The company reported a net loss of RMB 2,110.8 million for 2024, compared to a loss of RMB 38.0 million in 2023[7]. - The adjusted net loss for 2024 was RMB 2,077.7 million, compared to a profit of RMB 5.4 million in 2023[7]. - Revenue from IP games reached RMB 1,054 million, while total revenue for the group was RMB 1,930 million for the year ending December 31, 2024, down from RMB 2,605 million in 2023[53]. - Average monthly active users decreased to 14.7 million in 2024 from 17.1 million in 2023, and average monthly paying users fell to 1.0 million from 1.2 million[53]. - The group's gross profit decreased by 36.1% from RMB 943.1 million for the year ended December 31, 2023, to RMB 603.1 million for the year ending December 31, 2024, with a gross margin decline from 36.2% to 31.2%[63]. - The company's IP licensing revenue decreased by 54.7% from RMB 257.0 million in 2023 to RMB 116.5 million in 2024[62]. Strategic Initiatives - The company plans to launch several new IP games between 2025 and 2026, including titles based on popular franchises[9]. - The company aims to focus on high-quality IP games and strategic partnerships with agile developers for future projects[9]. - The company is implementing a strategy of "business focus + cost control" to navigate the competitive gaming market[9]. - The company plans to deepen its market presence in Hong Kong, Macau, and Taiwan, with further expansion into Japan, South Korea, and Southeast Asia by 2025, launching multiple games including "斗破苍穹：巅峰对决" and "真．三国无双霸" in these regions[10]. - The company is exploring the potential of AI in gaming, aiming to integrate AI into casual game development for innovative gameplay experiences[12]. - The company plans to launch multiple new products in 2025, including "Spring and Autumn Mysteries" and "Sword of Immortal World," with specific release dates in January and February respectively[34]. Cost Management - The company has implemented significant cost control measures, resulting in a 34.0% year-on-year decrease in R&D expenses for 2024, improving operational efficiency[14]. - Research and development costs were reduced from RMB 370.3 million in 2023 to RMB 244.3 million in 2024, a decrease of 34.0%[56]. - The total sales cost decreased by 20.2% from RMB 1,662.8 million in 2023 to RMB 1,327.0 million in 2024, primarily due to reduced revenue from game publishing and development[61]. Market Expansion - The company aims to become a leading publisher in the casual gaming market, having successfully launched several games with cumulative revenues exceeding hundreds of millions of RMB, including "凡人飞仙传" and "全民枪神：边境王者"[10]. - The mobile game "斗罗大陆：史莱克学院" launched in January 2024, achieving over 10 million RMB in revenue in its first month and receiving multiple accolades[17]. - The mobile game "Dou Luo Da Lu: Reverse Time and Space," launched in September 2024, reached the top of the Apple free games chart but failed to meet user acquisition and revenue expectations; however, it maintained stable user retention and payment rates, with a Taptap rating increase from 6.0 to 6.7[19]. - The group plans to launch several new games in 2025, including "Daily Life of Chat Groups" and "Naruto: Konoha Master," after extending development timelines to ensure product quality[20]. IP Development - The company will continue to operate the "仙剑奇侠传" IP, with new projects including an animated series and multiple game adaptations expected to enhance fan engagement and revenue[13]. - The group's IP licensing revenue for "Xian Jian Qi Xia Zhuan" was approximately 116.5 million RMB, and the acquisition of overseas rights is expected to enhance the unified planning of the IP[25]. - The company launched a series of blind box products based on the "Xianjian" IP, achieving crowdfunding exceeding 10 million RMB for classic weapon models in collaboration with Alibaba's innovative entertainment platform[27]. - The company celebrated the 29th anniversary of "Xianjian" with offline events in Hangzhou, Changzhou, and Chongqing, including concerts and parades, while the live-action project began operations in Chongqing in 2023 and expanded to Hangzhou and Changzhou in July 2024[28]. User Engagement - The company reported a significant increase in user engagement, with a 25% year-over-year growth in active users[1]. - As of December 31, 2024, the active user count for "全民槍神：邊境王者" reached 91 million, with registered users surpassing 600 million[40]. - The overlap of paying users between mini-games and traditional mobile games is only 35%, indicating a significant opportunity for new user acquisition in the mini-game sector, projected to be a growth point for 2025[40]. Corporate Governance and Compliance - The company has been recognized as an "ESG Comprehensive Governance Benchmark Enterprise" for its commitment to environmental sustainability and social responsibility, integrating eco-friendly practices into its business decisions[30]. - The company has complied with all applicable laws and regulations related to intellectual property development and management as of the board report date[176]. - The independent non-executive directors confirmed that the transactions under the contractual arrangements for the year ending December 31, 2024, were conducted according to the relevant provisions of the agreements[172]. Shareholder Information - The total issued shares as of December 31, 2024, was 2,995,413,777 shares[150]. - Major shareholders include Mr. Xiao with 785,358,067 shares (26.21%) and Trident Trust Company holding 763,908,067 shares (25.50%) as of December 31, 2024[146]. - The company did not recommend a final dividend for the year ended December 31, 2024, consistent with no dividends declared for the previous year[110].