CMGE(HK:00302)2023-09-06 08:30Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 1,535.4 million, representing a year-on-year increase of 24.6% compared to RMB 1,232.8 million in the same period of 2022[6]. - The net profit attributable to the owners of the parent company for the same period was RMB 56.8 million, a significant recovery from a loss of RMB 21.9 million in the prior year[6]. - The adjusted net profit for the first half of 2023 was RMB 76.2 million, compared to a loss of RMB 15.7 million in the first half of 2022[6]. - The gross profit for the same period was RMB 516,195 thousand, slightly up from RMB 500,963 thousand in 2022, indicating a stable gross margin[24]. - The company reported a pre-tax profit of RMB 42,572 thousand for the first half of 2023, compared to a loss of RMB 19,372 thousand in the same period of 2022[24]. - The company reported a profit of RMB 50,995,000 for the six months ended June 30, 2023, compared to a loss of RMB 25,408,000 in the same period of 2022, marking a significant turnaround[79]. - Total comprehensive income for the period reached RMB 86,463,000, up from RMB 22,890,000 in the prior year, reflecting a year-over-year increase of approximately 277%[79]. User Engagement - The average monthly active users reached 15.6 million, up from 12.8 million in the previous year, indicating a growth of 22.5%[10]. - The average monthly paying users increased to 1.1 million, compared to 941.4 thousand in the same period last year, reflecting a growth of 20.3%[10]. - The total number of new registered users was 48.7 million, an increase from 38.4 million in the previous year, marking a growth of 26.9%[10]. Game Development and Launches - The company launched 8 new mobile games in the first half of 2023, contributing to its expanding game portfolio[9]. - The game "New Sword and Fairy" launched in June 2023 achieved over 8 million pre-registrations and ranked first in the free category on the Apple Store in mainland China during its first month[11]. - The game "全明星激鬥" ranked first on TapTap's popular list and third on the free list of the Apple Store in mainland China, achieving a peak ranking of 21 on the sales list[12]. - The group successfully launched the role-playing card mobile game "新仙劍奇俠傳之揮劍問情" in June 2023, with several other games in the testing phase[13]. - The game "大富翁 11" has sold over 270,000 copies globally as of June 30, 2023, following its launch on multiple platforms[12]. - The game "全民街籃" is set to launch in 2023, with plans for significant esports events surrounding it[12]. Research and Development - The group's R&D investment reached RMB 266.9 million in the first half of 2023, representing a year-on-year increase of 30.6%[12]. - The group has implemented strict measures for underage players, with less than 0.01% of its gaming revenue coming from players under 18 years old in 2023[18]. - The company is collaborating with Microsoft in cloud computing and AI technology, aiming to enhance the gaming experience in "Xianjian World" through localized AI model deployment[16]. Strategic Partnerships and Collaborations - The group has partnered with Tencent Video for a long-term strategic collaboration on the "仙劍" IP, with the drama "仙劍奇俠傳一" expected to be released in 2023[14]. - The group has collaborated with various well-known partners to launch a series of collectible figures and toys related to the "仙劍" franchise in 2023[15]. - The company is collaborating with leading cloud service provider Weiling Era to develop MR mixed reality content for the "Xianjian Qixia Chuan" IP, enhancing user experience[21]. Financial Position and Assets - As of June 30, 2023, the total cash and cash equivalents of the group amounted to RMB 188.4 million, a decrease of approximately 20.5% compared to RMB 237.0 million on December 31, 2022[44]. - The current ratio as of June 30, 2023, was 2.17, up from 1.6 on December 31, 2022, indicating improved liquidity[44]. - The group's bank borrowings totaled RMB 390.2 million as of June 30, 2023, with an interest rate ranging from 2.50% to 5.00%[45]. - The company's non-current assets totaled RMB 4,868,844,000 as of June 30, 2023, a slight decrease from RMB 4,922,728,000 at the end of 2022[80]. - The company's total assets less current liabilities stood at RMB 6,054,266,000, an increase from RMB 5,794,413,000 at the end of 2022[81]. Shareholder Information - The total number of shares issued as of June 30, 2023, is 2,752,672,000[67]. - Mr. Xiao holds 780,894,067 shares, representing 28.37% of the total shares issued as of June 30, 2023[66]. - Mr. Xian owns 822,137,663 shares, accounting for 29.87% of the total shares issued as of June 30, 2023[66]. - The company has granted a total of 62,077,000 stock options under all adopted stock option plans, representing about 2.26% of the weighted average number of shares issued during the period of 2,752,672,000 shares[63]. Future Outlook - The company provided a positive outlook for the second half of 2023, projecting revenue growth of 20% to 30% based on current market trends and user acquisition strategies[139]. - New product launches are expected to contribute an additional $30 million in revenue, with anticipated release dates in Q3 and Q4 2023[139]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the gaming sector[139].