FEIYU(HK:01022)2025-04-25 09:22Financial Performance - The company achieved a total revenue of RMB 276.7 million for the year ended December 31, 2024, representing a year-on-year growth of 22.4%[9] - The company reported a net loss attributable to equity holders of RMB 44.4 million for the year ended December 31, 2024[7] - The total equity decreased to RMB 482.6 million from RMB 525.9 million in the previous year[8] - For the fiscal year ending December 31, 2024, the company's gaming operations generated approximately RMB 238.8 million, an increase of about 36.7% from RMB 174.7 million in the previous year, primarily driven by the successful launch of the HTML5 game "一步两步" on August 1, 2024[27] - The company reported a net loss of RMB 46.1 million for the year ended December 31, 2024, compared to a profit of RMB 52.2 million in the previous year[34] - The company experienced a significant decrease in licensing and intellectual property-related income, dropping 52.7% to RMB 13.2 million due to the transition of "God's Path 3" to self-operation[36] - Other income and gains decreased by approximately 30.9% from RMB 22.3 million for the year ended December 31, 2023, to RMB 15.4 million for the year ending December 31, 2024, primarily due to a drop in investment income from RMB 7.2 million to RMB 1.2 million[40] Game Development and Launches - The successful launch of the HTML5 game "Step by Step" on August 1, 2024, significantly contributed to the company's performance[9] - Three new games were launched in 2024, including two HTML5 games and one virtual reality game, enhancing the company's product portfolio[10] - The game "Step by Step" quickly gained popularity, ranking in the top ten of the WeChat mini-game sales chart by December 2024[10] - The existing game series "Xianxian Dao" continued to generate stable revenue across online and mobile platforms, demonstrating ongoing popularity[10] - The daily active users (DAU) for the game "Defend the Carrot 4," launched in 2022, recorded moderate growth, indicating its sustained appeal[10] - The company plans to launch multiple new HTML5 games in 2025, alongside the anticipated release of the console game "Neon Abyss 2," expected to diversify revenue sources[14] - The company plans to launch multiple new HTML5 games in 2025, continuing to invest in the game "一步两步" to maintain its momentum since its release[22] - The company launched several new games including "一步两步", "Let's Plane", and "野人快跑" during the fiscal year ending December 31, 2024[93] User Engagement and Market Trends - The advertising revenue from "Defend the Carrot 4" grew by 22.2% compared to 2023, indicating sustained user engagement and advertiser interest[15] - As of December 31, 2024, the company reported approximately 235.7 million registered users for its RPG mobile and online games, with 173.4 million in online games and 62.3 million in mobile games[28] - The average Monthly Active Users (MPU) for online games decreased by 16.7% to 5,000 from 6,000 in the previous year, while mobile RPG games saw a 47.9% drop from 94,000 to 49,000[30] - Player satisfaction rating showed that approximately 92.31% of users rated their experience as 4 or above on a scale of 1 to 5, based on feedback from 7,975 users[190] Intellectual Property and Licensing - The blind box themed around "Defend the Carrot" achieved significant success, highlighting the commercial value of the company's intellectual property[10] - The company has expanded the "Defend the Carrot" IP into non-gaming applications, introducing 6 new product lines, bringing the total to 13 by the end of the year[16] - A limited edition of the golden "Defend the Carrot" collectible sold out within 5 minutes, setting a record for the fastest-selling licensed merchandise[16] - The company launched a total of 48 licensed products, focusing on lifestyle and office supplies, with many items experiencing multiple restocks due to high demand[17] Regulatory and Compliance - Key risks include strict regulatory oversight in the online gaming industry and the need to manage growth effectively to sustain business performance[18] - The company has established a game content review team to ensure compliance with relevant laws and regulations, focusing on player health and safety[20] - The company emphasizes compliance with various laws and regulations impacting its operations, including the Personal Information Protection Law and the Data Security Law of the People's Republic of China[85] Environmental, Social, and Governance (ESG) - The company is committed to sustainable development and has established a governance framework for environmental, social, and governance (ESG) issues[99] - The company has established an Environmental, Social, and Governance (ESG) working group to coordinate ESG initiatives across various departments, including R&D and operations[100] - The company has set environmental targets related to greenhouse gas emissions, waste management, energy consumption, and water resource management, with management reviewing progress at least annually[100] - The company aligns its vision with the United Nations Sustainable Development Goals (SDGs) and has developed specific strategies and targets for seven relevant SDGs[102] - The company emphasizes responsible operations, innovation, and community contributions as part of its strategic goals[103] - The company has committed to community service and educational sponsorships as part of its social responsibility initiatives[84] Employee and Workplace - The company has a total of 381 employees as of December 31, 2024, an increase from 334 in 2023, with 100% being full-time employees[111] - Employee turnover rate for 2024 is 19%, down from 33% in 2023, indicating improved employee retention[116] - The company provided a total of 1,379 training hours in 2024, slightly up from 1,375 hours in 2023[161] - The company has established a reward mechanism linked to individual performance, enhancing employee motivation and retention[119] - The company emphasizes diversity and equal opportunity in its hiring and evaluation processes, with no complaints regarding workplace inequality reported this year[120] Waste and Resource Management - The company reported a total waste generation of 564.26 tons in 2024, an increase from 535.56 tons in 2023, with a waste generation density of 76.62 kg/m²[180] - The total amount of waste recycled was 281.13 tons in 2024, up from 242.68 tons in 2023[180] - The company achieved a greenhouse gas emission reduction, with total emissions of 372.41 tons CO2 equivalent in 2024, down from 517.02 tons in 2023[177] - The company has implemented energy-saving measures to reduce unnecessary energy consumption and improve energy efficiency[175] - The company has installed dual-flush systems in restrooms to promote water conservation, contributing to a reduction in overall water usage[184]