家乡互动(03798) - 2024 - 年度财报

Financial Performance - Total revenue for 2024 was RMB 1,386,080,000, a decrease of 22.1% compared to RMB 1,779,667,000 in 2023[10] - Gross profit for 2024 was RMB 629,586,000, down 45.4% from RMB 1,157,455,000 in 2023[10] - The company reported a net loss of RMB 76,221,000 for 2024, marking its first loss since going public[12] - Total equity decreased to RMB 1,916,152,000 in 2024 from RMB 2,084,150,000 in 2023[11] - Adjusted net profit attributable to the company was RMB 295 million, while considering non-operating one-time factors, a loss of RMB 742 million was recorded[23] - Profit attributable to owners of the company decreased from approximately RMB 436.9 million for the year ended December 31, 2023, to a loss of approximately RMB 74.2 million for the year ending December 31, 2024, primarily due to reduced game revenue and gross profit, increased selling and marketing expenses, and losses from associates and joint ventures[39] - The group recorded a loss before tax of approximately RMB 91.5 million for the year ended December 31, 2024, compared to a profit of RMB 501.1 million in 2023, representing a decrease of approximately 118.3%[37] User Engagement and Market Strategy - Daily Active Users (DAU) and Monthly Active Users (MAU) for existing business reached 13.37 million and 64.34 million respectively, with a 35% year-on-year increase in paying users, totaling 17.8 million[15] - Daily Active Users (DAU) reached 13.38 million, with Monthly Active Users (MAU) averaging 64.34 million, showing stable user engagement[22] - The number of paying users increased significantly to 17.76 million, representing a 35% year-over-year growth[22] - The company focused on localizing products to enhance user engagement in targeted regional markets[13] - The company increased marketing investments in regional markets to improve user penetration rates[13] - The company is focusing on a "culture + game" export model to gain international market recognition and build a unique competitive advantage[20] - The company aims to penetrate regional markets and expand user scale by optimizing products and marketing strategies tailored to local entertainment needs[27] Product Development and Innovation - The flagship games "Weile Doudizhu" and "Weile Sichuan Mahjong" underwent a 3D upgrade to enhance user experience[13] - The company launched 3D versions of core products, enhancing visual performance and user experience[22] - The company successfully launched the casual SLG game "Home Garden: Dream Party," expanding its product line[24] - The company is actively advancing AI deployment, having completed initial deployment of its self-developed AI agent, which has improved R&D efficiency[19] - Advanced AI technologies, including DeepSeek, were integrated into business processes to enhance operational efficiency[25] - The company launched two new games on the Douyin platform, achieving significant early success with high rankings in multiple core lists, indicating strong adaptability and commercialization potential in new media channels[15] Marketing and Sales - Marketing expenses increased by RMB 106 million, contributing to pressure on overall profitability[23] - Sales and marketing expenses increased by approximately 31.1% to RMB 446.7 million, primarily due to increased promotional and advertising expenditures[35] - A series of short videos titled "Mahjong Mahjong Shake It Up" garnered over 200 million views, significantly lowering the participation threshold for the public[17] - The company successfully hosted multiple large-scale online tournaments, achieving a total topic playback of 150 million and 15 million cumulative viewers, enhancing user engagement[18] Global Expansion and Strategic Initiatives - The company is accelerating its globalization strategy, with successful launches of games like "Micro Fishing Overseas Version" in multiple international markets[20] - Two key products targeting the Middle East and Japan markets are set to launch in 2025, incorporating local cultural elements while retaining traditional gameplay[20] - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $50 million allocated for this purpose[67] - The company is committed to long-term sustainable development and optimizing operational efficiency despite short-term profitability pressures[24] Financial Management and Compliance - The company maintained a zero leverage ratio as of December 31, 2024, with no short-term or long-term bank borrowings[46] - The company has adopted a prudent financial management approach to monitor liquidity and ensure the ability to meet funding needs[43] - The company will not distribute an annual dividend this year to focus resources on business expansion, technological innovation, and global strategy deployment[26] - The company has established a framework for regular reporting on compliance with the original contractual arrangements from relevant business units and operational divisions at least monthly[166] Corporate Governance and Shareholder Matters - The company has adopted corporate governance principles and has complied with the applicable code provisions without any deviations during the year ended December 31, 2024[199] - The independent auditor Deloitte confirmed no reservations regarding the related party transactions for the year ending December 31, 2024[168] - The company has confirmed that there are no related party transactions requiring independent shareholder approval as of the report date[169] - The board of directors has approved a share buyback program worth $10 million to enhance shareholder value[67] Risks and Challenges - The group faces risks related to its revenue dependence on two main game types, Mahjong and Poker variants, which could significantly impact business performance if not maintained or improved[75] - A small portion of registered players are paying users, and the group must effectively promote player payments to sustain growth[81] - The group relies on third-party payment providers, primarily WeChat Pay and Alipay, which introduces risks related to payment transmission stability[81] - The company may incur higher income tax liabilities due to differing tax rates applicable to the company and its Chinese operating entities, which could adversely affect its operating performance[162]