CMGE(HK:00302)2023-04-25 08:31Financial Performance - Total revenue for 2022 was RMB 2,713,892 thousand, a decrease of 31.4% from RMB 3,956,570 thousand in 2021[8]. - Gross profit for 2022 was RMB 1,111,695 thousand, down 24.5% from RMB 1,473,490 thousand in 2021[8]. - The company reported a net loss of RMB (216,880) thousand for 2022, compared to a profit of RMB 593,943 thousand in 2021[8]. - Adjusted net loss for 2022 was RMB (196,134) thousand, a significant decline from an adjusted profit of RMB 630,028 thousand in 2021[8]. - Total assets decreased to RMB 7,153,754 thousand in 2022 from RMB 7,841,719 thousand in 2021, reflecting a decline of 8.8%[8]. - Total liabilities decreased to RMB 1,461,871 thousand in 2022 from RMB 2,047,857 thousand in 2021, a reduction of 28.6%[8]. - Total equity for 2022 was RMB 5,691,883 thousand, slightly down from RMB 5,793,862 thousand in 2021[8]. - Basic loss per share for 2022 was RMB (7.42), compared to earnings of RMB 22.85 per share in 2021[8]. - The company did not declare any dividends for 2022, maintaining the same policy as in 2021[8]. Research and Development - R&D investment increased from RMB 310.7 million in 2021 to RMB 526.7 million in 2022, representing a year-on-year growth of 69.5%[11]. - The number of R&D personnel reached 650, representing 55.8% of the total workforce[14]. - The company has focused on increasing its R&D capabilities and leveraging its IP resources to build a competitive game ecosystem[10]. Game Development and Launches - The mobile game "Zhenhun Street: Born to be King" had over 5 million user pre-registrations and achieved over 200,000 new registered users on its first day, generating over RMB 100 million in revenue within the first week[12]. - The game "All-Star Battle" received the 2022 Player's Most Anticipated Mobile Game award and reached the top of the free chart in the Apple Store in mainland China within its first month of launch[12]. - The company plans to launch the game "Xianjian World," which incorporates open-world elements, in 2023, featuring advanced technologies such as AI NPCs and cross-platform support[11]. - The game "Ultraman: Gathering" achieved over 1 million user pre-registrations within a month of opening pre-registrations and ranked second in the Apple Store free chart in its first month of launch[12]. - The game "代號：籃球3v3" is currently in the testing phase and is expected to launch in 2023[15]. - The game "我的御劍日記" launched in November 2022 achieved third place in the Apple Store free chart in Taiwan during its first month[13]. - The game "真 ‧ 三國無雙霸" launched in January 2022 achieved first place in the Apple and Google Store free charts in multiple regions during its first month[13]. - The game "奧特曼：集結" was exclusively released in January 2023, based on the licensed Ultraman IP[13]. - The PC game "仙劍奇俠傳七" sold over 510,000 copies by December 31, 2022[14]. - The mobile game "斗羅大陸：鬥神再臨" launched in March 2022 achieved fourth place in the Apple Store sales chart in Vietnam during its first month[13]. Intellectual Property and Licensing - The company's intellectual property licensing revenue for the first half of 2022 was approximately RMB 147.1 million[16]. - As of December 31, 2022, the group owned a total of 132 IPs, including 64 licensed IPs and 68 proprietary IPs, making it the largest IP holder among Chinese game publishers, excluding Tencent[26]. - The revenue from IP games reached RMB 1,676.3 million in 2022, with 25 IP games operating online[27]. - The company aims to enhance the reputation of "Sword and Fairy" among young consumers through high-quality content and interactive experiences[17]. Market Expansion and Strategy - The company aims to enhance its market presence and explore new product development strategies in the upcoming fiscal year[8]. - The company's overseas business revenue for 2022 was RMB 361.2 million, accounting for 13.3% of total revenue[13]. - The company is set to expand its market presence in Hong Kong, Macau, Taiwan, and overseas, with successful games from mainland China planned for release in these regions in 2023[21]. - The company is exploring new market opportunities to expand its user base and revenue streams[143]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance practices[135]. - The board of directors includes experienced members with backgrounds in business operations, management, and strategic planning[139]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations, and has obtained all necessary licenses and permits for its operations[133]. - The company has received a waiver from the Stock Exchange regarding certain compliance requirements under the Listing Rules, allowing for ongoing related party transactions[127]. Financial Management and Cost Control - The company has implemented cost-cutting measures that are projected to save approximately $10 million annually[146]. - The company experienced a decrease in sales costs, which fell by 35.5% to RMB 1,602.2 million in 2022 from RMB 2,483.1 million in 2021[39]. - The company's sales and distribution expenses decreased by 52.2% from RMB 497.6 million in 2021 to RMB 238.0 million in 2022, primarily due to delays in obtaining game licenses and a reduction in marketing personnel[44]. Social Responsibility and Community Engagement - The company has allocated RMB 1 million to support anti-epidemic efforts in Hong Kong, focusing on vulnerable groups such as the elderly and children[20]. - The company has established ten "Dream Libraries" to support youth reading, with the latest one completed in June 2022 in Guangdong Province[20]. - The company made charitable donations totaling approximately RMB 1,163,000 for the year ended December 31, 2022, compared to RMB 1,097,000 in 2021[74]. Future Outlook - Future guidance indicates an expected revenue growth of 20% for the upcoming fiscal year[148]. - The company plans to launch three new mobile games in the next quarter, aiming to capture a larger market share[147]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in user acquisition in that region[146].