指尖悦动(06860) - 2025 - 中期业绩

Company Overview and Financial Summary The company announced unaudited interim results for H1 2025, showing significant declines in revenue, gross profit, and profit for the period Company Information and Report Statement Fingertango Holdings Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparative financial data for the same period in 2024 - Fingertango Holdings Limited (the Company) and its subsidiaries (the Group) announced their unaudited condensed consolidated interim results for the six months ended June 30, 2025[3] Financial Summary During the reporting period, the company experienced significant declines in revenue, gross profit, and profit for the period, with revenue decreasing by 35.5%, gross profit by 43.7%, and profit by 52.4% year-on-year For the six months ended June 30 Financial Summary | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 211.9 | 328.3 | (35.5)% | | Gross Profit | 116.1 | 206.2 | (43.7)% | | Profit for the Period | 4.4 | 9.2 | (52.4)% | Market and Business Review The Chinese gaming market achieved record sales and user growth in H1 2025, driven by mobile games, while the Group's revenue and profit declined due to strategic marketing cuts and mature game performance Market Overview In H1 2025, China's gaming market achieved record sales and user growth, primarily driven by mobile games, with self-developed strategy games leading overseas revenue - In H1 2025, China's gaming market achieved actual sales revenue of RMB 168.00 billion, a year-on-year increase of 14.08%, reaching a new historical high[6] - China's mobile game market actual sales revenue reached RMB 125.309 billion, a year-on-year increase of 16.55%, accounting for approximately three-quarters of the Chinese gaming market[6] - Actual sales revenue of China's self-developed games in overseas markets increased by 11.07% to USD 9.501 billion, with strategy mobile games accounting for 43.33% of revenue, ranking first[7] Business Review The Group's total revenue decreased by 35.5% to RMB 211.9 million, primarily due to strategic cuts in advertising and promotion expenses and the natural decline of classic games in their mature phase - Total revenue was approximately RMB 211.9 million, a decrease of approximately 35.5% year-on-year, mainly attributed to strategic reductions in advertising and promotion expenses and classic games entering their mature operational phase[8] - Profit attributable to owners of the company was approximately RMB 4.4 million, a 52.4% decrease from approximately RMB 9.2 million in the same period last year, primarily impacted by revenue contraction leading to lower gross profit, reduced other income, and increased administrative expenses[9] - Sales and marketing expenses decreased by approximately 64.8% to approximately RMB 53.3 million, with resources reserved for the research and development and launch promotion of the next flagship product[9] Key Performance Indicators Average MAUs and MPUs significantly decreased, while ARPPU increased, and cumulative registered users maintained stable growth during the reporting period Summary of Key Performance Indicators | Metric | Unit | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Average MAUs | users | 1,370,023 | 5,080,835 | (73.0)% | | Average MPUs | users | 70,989 | 127,024 | (44.1)% | | ARPPU | RMB | 497 | 431 | 15.3% | | Cumulative Registered Users | million users | 264.9 | 255.1 | 3.8% | - Average monthly active users decreased by approximately 73.0% to approximately 1.4 million, mainly due to reduced marketing expenses and the game product portfolio entering a mature phase[12] - Total cumulative registered users reached approximately 264.9 million, a year-on-year increase of approximately 3.8%, with a large user base supporting the company in launching new games and conducting precise marketing through data analysis[12] H2 2025 Outlook The company anticipates continued rapid growth in the gaming industry, with stricter regulations driving a focus on quality, and the Group will maintain its long-lifecycle game development strategy and prudent marketing - Tightening regulations in China's gaming industry are prompting developers and operators to provide more innovative and high-quality content, focusing on sustainable development and quality improvement[13] - The Group will adhere to its long-term growth strategy centered on developing games with long lifecycles, continuously optimizing gameplay, expanding content, and utilizing proprietary data analytics[13] - In the second half of the year, the Group will actively advance new game development, focus on cost-effective real-time operations for its existing product portfolio, adopt a more prudent marketing strategy, and fully leverage its big data analytics capabilities[14] Financial Performance Analysis The Group's financial performance was marked by a significant decline in revenue and gross profit, driven by strategic marketing cuts and the natural maturation of its game portfolio, while administrative and R&D expenses increased Revenue Total revenue decreased by 35.5% year-on-year to RMB 211.9 million, primarily due to a 64.8% strategic reduction in sales and marketing expenses and the natural lifecycle decline of mature game titles - Total revenue was approximately RMB 211.9 million, a year-on-year decrease of 35.5%, primarily impacted by reduced advertising and marketing investment and the natural lifecycle decline of the mature game portfolio[16] - Sales and marketing expenses were significantly cut by approximately 64.8%, from RMB 151.6 million to RMB 53.3 million, which was the primary factor contributing to the revenue decline[16] Revenue Structure Changes | Revenue Type | 2025 (RMB million) | 2024 (RMB million) | Change (%) | Share (2025) | Share (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Self-published | 101.4 | 191.7 | (47.1)% | 47.9% | 58.4% | | Co-published | 110.4 | 136.6 | (19.2)% | 52.1% | 41.6% | Cost of Revenue Cost of revenue decreased by 21.6% year-on-year to RMB 95.7 million, mainly due to reduced platform sharing fees and game developer commissions, reflecting an overall decline in game revenue - Cost of revenue was approximately RMB 95.7 million, a decrease of approximately 21.6% from the same period last year, primarily due to lower platform sharing fees and reduced commissions paid to game developers[18] Gross Profit and Gross Margin Gross profit decreased by 43.7% to RMB 116.1 million, and gross margin declined by 8.0% to 54.8%, primarily due to revenue decreasing more than cost of revenue and a shift towards co-published games with higher developer sharing ratios - Gross profit decreased by approximately 43.7% from approximately RMB 206.2 million in the same period last year to approximately RMB 116.1 million[19] - Gross margin decreased by 8.0% from approximately 62.8% in the same period last year to approximately 54.8% during the reporting period, mainly due to revenue declining more than cost of revenue and an increased proportion of co-published games[19] Sales and Marketing Expenses Sales and marketing expenses significantly decreased by 64.8% to RMB 53.3 million, primarily due to reduced marketing needs for mature game titles and delayed new game launches, reflecting a more conservative marketing approach - Sales and marketing expenses decreased by approximately 64.8% from approximately RMB 151.6 million to approximately RMB 53.3 million[21] - The significant reduction was primarily due to the existing game portfolio entering a mature stage and reduced advertising expenses resulting from delayed new game launches[21] Administrative Expenses Administrative expenses increased by 65.6% year-on-year to RMB 24.9 million, mainly due to a one-off reversal of loss provision in the prior period and increased administrative staff costs to support operations - Administrative expenses increased by approximately 65.6% from approximately RMB 15.0 million in the same period last year to approximately RMB 24.9 million[23] - The increase was primarily attributable to a one-off reversal of loss provision for trade and other receivables in the same period last year (approximately RMB 11.6 million) and increased administrative staff costs[23] Research and Development Expenses Research and development expenses increased by 11.4% year-on-year to RMB 39.7 million, primarily due to higher investment costs for new games - Research and development expenses were approximately RMB 39.7 million, an increase of approximately 11.4% or approximately RMB 4.1 million from the same period last year[24] - The increase in research and development expenses was due to higher investment costs for new games[24] Other Income, Gains or Losses, Net Other income, gains, and losses, net, decreased to RMB 7.6 million, primarily due to a significant reduction in interest income and lower government grants - Other income, gains, and losses, net, decreased from approximately RMB 9.2 million in the same period last year to approximately RMB 7.6 million[25] - This was mainly due to a significant decrease in interest income (from RMB 12.3 million to RMB 5.9 million) and lower government grants (from RMB 2.1 million to RMB 0.3 million)[25] Income Tax Expense Income tax expense significantly decreased by 68.6% year-on-year to RMB 1.1 million, primarily due to a reduction in profit before income tax - Income tax expense significantly decreased by approximately 68.6% from approximately RMB 3.5 million in the same period last year to approximately RMB 1.1 million[26] - The decrease was primarily due to a reduction in profit before income tax, from approximately RMB 12.7 million in the same period last year to approximately RMB 5.5 million[26] Profit for the Period Profit attributable to owners of the company was RMB 4.4 million, a decrease from RMB 9.2 million in the prior period, reflecting reduced revenue and gross profit, lower interest income, increased administrative expenses, and offsetting R&D and marketing expense changes - Profit attributable to owners of the company recorded approximately RMB 4.4 million, compared to approximately RMB 9.2 million in the same period last year[27] - The change was primarily due to the combined impact of reduced revenue and gross profit, lower interest income, increased administrative expenses, and the offsetting effects of increased research and development expenses and decreased sales and marketing expenses[27] Balance Sheet and Liquidity The Group's balance sheet showed a decrease in investments and prepayments, a reduction in fixed deposits, and a significant increase in bank and cash balances, maintaining strong liquidity with no borrowings Investments at Fair Value Through Profit or Loss Total investments at fair value through profit or loss amounted to RMB 107.7 million as of June 30, 2025, a decrease from the end of 2024, mainly due to the redemption of approximately RMB 20.0 million from the Boyou Yuedong private equity fund - As of June 30, 2025, investments at fair value through profit or loss recorded approximately RMB 107.7 million[28] Changes in Investments at Fair Value Through Profit or Loss | Investment Type | Dec 31, 2024 (RMB million) | Jun 30, 2025 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Hong Kong listed equity securities | 7.4 | 7.0 | (0.4) | | Wealth management products: Zhongzhou Longteng Growth Fund No. 7 | 80.7 | 79.8 | (0.9) | | Wealth management products: Boyou Yuedong Exclusive Private Securities Investment Fund | 40.3 | 20.9 | (19.4) | | Total | 128.4 | 107.7 | (20.7) | - The decrease in investments was primarily due to the redemption of approximately RMB 20.0 million from the Boyou Yuedong private equity investment fund within the original contract period[29] Prepayments and Deposits Total prepayments and deposits decreased from RMB 37.3 million at the end of 2024 to RMB 30.9 million as of June 30, 2025, mainly due to reduced prepayments for promotion expenses and game developers, with the company making significant impairment provisions and pursuing legal action - Total prepayments and deposits decreased from approximately RMB 37.3 million to approximately RMB 30.9 million[30] - The decrease was primarily attributable to reduced prepayments for promotion expenses (a decrease of approximately RMB 8.8 million) and prepayments to game developers (a decrease of approximately RMB 2.9 million)[31] - The company made significant impairment provisions for prepayments, mainly due to business failures, delayed development progress, developers refusing refunds, and the impact of the pandemic, and has initiated legal actions to recover funds[32][33] Fixed Deposits Total fixed deposits decreased by approximately RMB 108.6 million from RMB 319.2 million at the end of 2024 to RMB 210.6 million, primarily due to the maturity and redemption of certain fixed deposits - Total fixed deposits decreased by approximately RMB 108.6 million from approximately RMB 319.2 million to approximately RMB 210.6 million[34] - The significant decrease was primarily due to the maturity and subsequent redemption of certain fixed deposits according to their original terms[34] Bank and Cash Balances Bank and cash balances significantly increased from RMB 352.1 million at the end of 2024 to RMB 509.3 million, primarily due to the maturity and redemption of fixed deposits during the reporting period - Bank and cash balances significantly increased from approximately RMB 352.1 million as of December 31, 2024, to approximately RMB 509.3 million[35] - The significant increase of approximately RMB 157.3 million was primarily due to the maturity and redemption of fixed deposits during the reporting period[35] Liquidity, Financial Resources, and Borrowings As of June 30, 2025, the Group maintained a strong liquidity ratio of 4.3, with no bank borrowings or other debt financing obligations, and plans to fund future operations and investments using internal resources - Current assets were approximately RMB 795.9 million, current liabilities approximately RMB 186.1 million, resulting in a current ratio of 4.3[36] - The Group had no bank borrowings or other debt financing obligations, and its gearing ratio was zero[36] - The Group intends to fund its expansion, investments, and business operations using internal resources[36] Capital Structure There were no changes in the Group's capital structure during the reporting period - There were no changes in the Group's capital structure during the reporting period[37] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[38] Pledged Assets As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[39] Foreign Exchange Risk The Group's revenue is primarily denominated in RMB, and it will continue to monitor exchange rate risks to maintain cash value, with no hedging transactions undertaken during the reporting period - The Group's revenue is primarily and largely denominated in RMB[40] - The Group will continue to monitor exchange rate risks to maintain its cash value, and no hedging transactions were entered into as of June 30, 2025[40] Major Investments and Corporate Actions The Group held significant investments in the Zhongzhou Longteng Growth Fund, with no other major investment plans, acquisitions, or disposals during the period, and outlined the use of IPO proceeds Major Investments Held During the reporting period, the Group held the Zhongzhou Longteng Growth Fund No. 7, whose fair value accounted for 7.9% of the Group's total assets, aiming for stable total returns through loan-generated income and capital appreciation Major Investments Held | Investment Name | Investment Cost (RMB million) | Fair Value Dec 31, 2024 (RMB million) | Fair Value Jun 30, 2025 (RMB million) | % of Investments Held Jun 30, 2025 | % of Total Assets Jun 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhongzhou Longteng Growth Fund No. 7 | 88.3 | 80.7 | 79.8 | 74.1% | 7.9% | - The investment objective of the Zhongzhou Longteng Growth Fund is to generate stable total returns for investors through recurring income from loans provided to appropriate investment targets and capital appreciation[41] Future Plans for Material Investments or Capital Assets and Expected Funding Sources As of June 30, 2025, the Group had no other plans for material investments or acquisitions of significant capital assets - Except as disclosed in this announcement, as of June 30, 2025, the Group had no other plans for material investments or acquisitions of significant capital assets[43] Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[44] Use of Proceeds Since its listing, the company has utilized a portion of the net proceeds as disclosed in the prospectus, with approximately HKD 243.0 million remaining as of June 30, 2025, expected to be fully utilized by December 31, 2026 Use of Net Proceeds and Balance | Intended Use | Proportion (%) | Intended Amount (HKD million) | Remaining Dec 31, 2024 (HKD million) | Utilized H1 2025 (HKD million) | Remaining Jun 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Develop game acquisition capabilities | 35% | 338.5 | 238.2 | 22.4 | 215.8 | | Establish in-house game R&D team | 25% | 241.8 | 37.8 | 18.6 | 19.2 | | Marketing and promotion activities | 20% | 193.4 | — | — | — | | Expand to overseas markets | 10% | 96.7 | — | — | — | | Working capital and general corporate purposes | 10% | 96.7 | 20.2 | 12.2 | 8.0 | | Total | 100% | 967.1 | 296.2 | 53.2 | 243.0 | - The remaining net proceeds of approximately HKD 243.0 million as of June 30, 2025, are expected to be fully utilized on or before December 31, 2026[69] Interim Dividend The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - No dividends were paid or proposed to be paid to ordinary shareholders of the Company for the six months ended June 30, 2025[61] - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[70] Employees and Remuneration As of June 30, 2025, the Group had 179 employees, a decrease from 301 in the prior year, with total staff costs decreasing to RMB 35.0 million, and the company offers competitive compensation and training - As of June 30, 2025, the Group had 179 employees, compared to 301 employees as of June 30, 2024[71] - Total staff costs for the reporting period were approximately RMB 35.0 million, compared to approximately RMB 51.1 million in the same period last year[71] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[72] Material Events After Reporting Period As of the date of this announcement, no material events have occurred after the reporting period - As of the date of this announcement, no material events have occurred after the reporting period[73] Legal Proceedings and Corporate Governance The Group is involved in significant legal proceedings, including a note default, loan recovery efforts, and an SFC petition, while maintaining compliance with corporate governance standards and reviewing interim results Material Legal Proceedings The Group faces several material legal proceedings, including an issuer note default, loan recovery from third parties, and a petition filed by the SFC, actively pursuing legal actions and cooperating with regulatory reviews Issuer Note Default Event A HKD 250 million secured note issued by Aobi Global Development Limited defaulted and remains partially unpaid as of June 30, 2025, with the new board appointing receivers and pursuing legal action, having recovered approximately RMB 11.0 million in principal and negotiating a comprehensive settlement - A secured note with a principal amount of HKD 250,000,000 issued by Aobi Global Development Limited defaulted and remained not fully repaid as of June 30, 2025[74] - The new Board has engaged a Hong Kong law firm to issue demand letters to the issuer and appointed receivers to protect the collateral and the Company's interests[75][76] - Through the efforts of the receivers, the issuer had repaid approximately RMB 11,000,000 in principal as of June 30, 2025, and is in advanced negotiations with the issuer to formulate a comprehensive settlement plan[76] Loans to Other Third Parties Loans granted to third parties were fully impaired, but the company continues to pursue recovery, has taken legal action, received some interest repayments, recognized a reversal of loss provision for loans and interest, and obtained a final judgment for one loan, initiating enforcement measures - The balance of loans granted by the Group to other third parties was RMB 397,894,000 as of December 31, 2022, which has been fully impaired[77] - The new Board has instructed legal counsel to initiate legal proceedings and has held multiple discussions with borrowers, making progress on repayment status[78] - The company obtained a final judgment against China Good Fortune Limited on June 6, 2025, and will take enforcement measures, including but not limited to winding-up[79] Securities and Futures Commission Petition The SFC filed a petition regarding two corporate activities, requesting the appointment of external auditors to review internal control procedures; the company engaged an independent consultant for investigation and review, submitted a defense, and the SFC revised the petition to include subsidiaries as respondents and allege claims against Mr. Liu Jie and former directors for external loans - The Company received a petition from the SFC requesting the appointment of external auditors to review internal control procedures[80] - The company engaged Grandall International Consulting Limited to conduct an independent investigation and review of investment procedures, loan procedures, and internal control systems[80] - The SFC has amended the petition, adding subsidiaries as respondents and alleging claims against Mr. Liu Jie and certain former directors regarding external loans, seeking compensation[81] Standard Code for Securities Transactions by Directors Following specific inquiries, all directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period - Following specific inquiries made to the directors, all directors confirmed their compliance with the standards set out in the Model Code during the reporting period[83] Compliance with Corporate Governance Code During the reporting period, the Company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - During the reporting period, the Company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[84] Audit Committee and Review of Interim Results The Company's Audit Committee reviewed the Group's unaudited condensed consolidated interim results, confirming compliance with applicable accounting principles, standards, and requirements, with adequate disclosures and no objections to accounting treatments - The Audit Committee comprises three independent non-executive directors, in compliance with Rule 3.21 of the Listing Rules and the Corporate Governance Code[85] - The Group's unaudited condensed consolidated interim results have been reviewed by the Audit Committee, which confirmed compliance with applicable accounting principles, standards, and requirements, and that adequate disclosures have been made[86] Publication of Interim Results and Interim Report This announcement has been published on the HKEXnews website and the Company's website, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course - This announcement is published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.fingertango.com)[87](index=87&type=chunk) - The Group's 2025 interim report will be dispatched to shareholders of the Company who have elected to receive printed copies and will be published on the aforementioned websites in due course[87] Acknowledgement and Board Members Dr. Chen Wenfeng, Chairman and Executive Director, on behalf of the Board, expressed gratitude to all stakeholders and outlined the Board's composition as of the announcement date - Dr. Chen Wenfeng, Chairman and Executive Director, on behalf of the Board, expressed gratitude to all employees, management team, users, and business partners for their support[88] - As of the date of this announcement, the Board comprises executive directors Dr. Chen Wenfeng and Ms. Li Nini, and independent non-executive directors Mr. Ye Chuanghe, Mr. Jiang Huihui, and Mr. Shan Haoquan[90]