FINGERTANGO(06860)2025-04-29 08:33Financial Performance - In 2024, FingerTango Inc. reported total revenue of RMB 609.2 million, a decrease of 5.7% compared to RMB 646.1 million in 2023[11] - The company's gross profit for 2024 was RMB 345.9 million, down 6.9% from RMB 371.9 million in the previous year[11] - Annual profit for 2024 was RMB 32.8 million, a significant recovery from a loss of RMB 139.4 million in 2022[11] - The profit attributable to shareholders surged to approximately RMB 32.8 million, compared to RMB 6.8 million in the same period last year, primarily due to reduced sales and marketing expenses[17] - The cost of revenue was approximately RMB 263.3 million, a decrease of about 4.0% from RMB 274.2 million in the previous year[26] - Gross profit was approximately RMB 345.9 million, with a gross margin of about 56.8%, down from 57.6% in the previous year[27] - Revenue from self-publishing decreased slightly by 1.2% to RMB 324.1 million, while revenue from co-publishing fell by 10.4% to RMB 285.0 million[24] - Other income, gains, and losses decreased by 52.5% from RMB 72.4 million in the previous year to RMB 34.4 million in the reporting period, primarily due to a decrease in fair value gains on investments[34] User Metrics - The number of registered users for the company's games continued to expand, contributing to a positive operational outcome despite market challenges[12] - Average Monthly Active Users (MAUs) increased by 0.4% to 3,394,677, while Average Monthly Paying Users (MPUs) decreased by 22.5% to 105,604[19] - Cumulative registered users reached approximately 261 million, reflecting a growth of about 12.5% compared to 232 million in the previous year[21] Market Overview - The Chinese gaming market's actual sales revenue reached RMB 325.78 billion in 2024, reflecting a year-on-year growth of 7.5%[15] - The mobile gaming segment accounted for RMB 238.22 billion of the total market revenue, marking a 5.0% increase year-on-year[15] - The number of gaming users in China reached 674 million in 2024, an increase of 0.94% compared to the previous year[15] - Domestic sales revenue for independently developed games was RMB 260.736 billion, with a growth rate of 1.70%[16] - Overseas sales revenue for independently developed games reached USD 18.557 billion, a year-on-year increase of 13.39%[16] Strategic Initiatives - The company aims to maintain sustainable development and prepare for future growth amidst a challenging market environment[12] - The company plans to launch new games in 2025, focusing on optimizing product strategies based on extensive user data analysis[23] - The company aims to enhance its game offerings while adhering to the principle of "game quality" amidst a competitive market environment[22] - The company continues to seek promising game projects to enhance its portfolio and expects upgraded games to provide additional revenue opportunities[38] Cost Management - Sales and marketing expenses decreased by approximately 27.0% from RMB 305.7 million in 2023 to RMB 223.0 million in 2024, primarily due to the maturity of existing game titles and delays in launching new games[30] - Research and development expenses decreased by approximately 8.8% from RMB 70.9 million in 2023 to RMB 64.7 million in 2024, mainly due to a reduction in employee benefits[33] Corporate Governance - The board does not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year[67] - The company has not made any loans or provided guarantees to its directors, senior management, or controlling shareholders as of December 31, 2024[113] - The company has adopted a dividend policy that allows for the declaration and distribution of dividends, subject to post-tax profits and board discretion[132] - The company has complied with all applicable corporate governance code provisions during the reporting period, except for the separation of the roles of chairman and CEO[162] Legal and Compliance - The company has received a request from the Securities and Futures Commission to appoint an external auditor to review its internal control procedures[108] - The independent investigation and review of internal control procedures are currently in the finalization process, with a report expected to be completed by mid-2025[108] - The company has confirmed that the controlling shareholders have complied with the non-competition commitments as of December 31, 2024[98] Human Resources - As of December 31, 2024, the group had a total of 245 employees, down from 301 employees as of December 31, 2023, with total employee costs amounting to RMB 96.9 million, compared to RMB 103.0 million in 2023[57] - The company has maintained good working relationships with employees, customers, suppliers, and other stakeholders, with no significant disputes reported during the year[65] Financial Position - The group's current assets as of December 31, 2024, are approximately RMB 761.0 million, with cash and cash equivalents decreasing by about 34.1% to RMB 352.1 million compared to RMB 534.5 million as of December 31, 2023[44] - The expected credit loss provision is projected to increase from approximately RMB 381.2 million in 2023 to about RMB 387.1 million in 2024, influenced by exchange rate effects and additional provisions[43] - The group has no bank borrowings or other debt financing obligations as of December 31, 2024, resulting in a debt-to-equity ratio of zero[46] Shareholder Information - The company has a stock option plan that allows for the issuance of up to 200,000,000 new shares, representing approximately 10.43% of the total shares issued as of the report date[117] - The company has adopted a Restricted Share Unit (RSU) plan with a maximum of 75,000,000 shares available for issuance, with 18,132,134 shares remaining as of the report date[114] Risk Management - The company continues to monitor foreign exchange risks, with most revenues denominated in RMB, and has not entered into any hedging transactions as of December 31, 2024[49] - The company has established measures to mitigate risks associated with potential changes in Chinese laws and regulations[149] Leadership Changes - The company has appointed Dr. Chen Wenfeng as Chairman effective January 10, 2025, following the resignation of Mr. Liu Jie[182] - The company has appointed Ms. Li Nini as CEO effective January 10, 2025, and she has over 10 years of experience in online gaming operations and management[175]