BOYAA(HK:00434)2022-04-28 09:00Financial Performance - In 2021, Boyaa Interactive recorded revenue of approximately RMB 366.2 million, a year-on-year increase of about 4.2% compared to RMB 351.5 million in 2020[11]. - The adjusted net profit for 2021 was approximately RMB 8.4 million, a significant recovery from an adjusted loss of RMB 45.1 million in 2020, marking a turnaround due to increased revenue and reduced management expenses[11]. - The gross profit for 2021 was RMB 245.0 million, slightly up from RMB 242.2 million in 2020, indicating stable gross margins[15]. - The pre-tax profit for 2021 was RMB 17.0 million, a recovery from a loss of RMB 22.1 million in 2020, showcasing improved operational efficiency[15]. - The total comprehensive income attributable to owners of the company for 2021 was a loss of RMB 28.8 million, an improvement from a loss of RMB 59.7 million in 2020[15]. - The company recorded revenue of approximately RMB 366.2 million in 2021, an increase of about 4.2% compared to RMB 351.5 million in 2020[20]. - In Q4 2021, revenue was approximately RMB 87.7 million, a year-on-year increase of about 12.9%[20]. - The company achieved an adjusted net profit of approximately RMB 8.4 million for 2021, compared to an adjusted loss of RMB 45.1 million in 2020[21]. - The company recorded a profit attributable to owners of approximately RMB 80 million for the year ended December 31, 2021, compared to a loss of RMB 451 million in the same period of 2020[38]. - The company reported a profit attributable to owners of approximately RMB 133 million for the three months ended December 31, 2021, compared to a loss of RMB 304 million in the same period of 2020[54]. User Metrics - The number of paying users increased by approximately 4.7% from about 0.24 million in Q4 2020 to about 0.25 million in Q4 2021[23]. - Daily active users decreased by approximately 20.7% from about 1.6 million in Q4 2020 to about 1.3 million in Q4 2021[23]. - Monthly active users decreased by approximately 10.8% from about 4.5 million in Q4 2020 to about 4.0 million in Q4 2021[23]. - The number of paying players increased to 246,000 in 2021 from 235,000 in 2020, representing a growth of 4.7%[96]. - Daily active users decreased by 20.7% to 1,289,000 in 2021 from 1,626,000 in 2020[96]. - Monthly active users also declined by 10.8% to 4,006,000 in 2021 compared to 4,493,000 in 2020[96]. Cost and Expenses - The cost of revenue increased by approximately 10.9% from RMB 109.2 million in 2020 to RMB 121.2 million in 2021[28]. - Sales and marketing expenses increased by approximately 15.2% from RMB 246 million in 2020 to RMB 283 million in 2021, accounting for 7.7% of revenue in 2021, up from 7.0% in 2020[31]. - Administrative expenses decreased by approximately 20.0% from RMB 1,213 million in 2020 to RMB 970 million in 2021, primarily due to a reduction in professional service fees[32]. - Total capital expenditure for the year ended December 31, 2021, was approximately RMB 114 million, a decrease from RMB 120 million for the year ended December 31, 2020[72]. - The total employee costs for the year ended December 31, 2021, amounted to approximately RMB 804 million, representing about 32.6% of the total expenses[81]. Strategic Focus and Future Plans - Boyaa Interactive plans to continue focusing on high-quality intellectual competitive online games and events, aiming to create a healthy gaming environment in 2022[14]. - The company aims to enhance product refinement and diversification, with ongoing market research and innovation in game development[13]. - The company plans to continue exploring domestic and international game operation models and expand overseas markets in 2022[24]. - The company aims to enhance user experience and innovate game content and gameplay in 2022[24]. - The company is optimistic about future growth and aims to align its goals with the interests of all stakeholders[14]. Corporate Social Responsibility - Boyaa Interactive emphasizes its commitment to corporate social responsibility through various charitable activities, including donations to schools[13]. - The group recorded total donations of RMB 46,189 for the year ended December 31, 2021, compared to RMB 40,063 in 2020, representing an increase of approximately 5.3%[139]. Compliance and Risk Management - The company is committed to ensuring compliance with evolving cybersecurity, information security, privacy, and data protection laws, which may necessitate unfavorable business changes[107]. - The company is closely monitoring local regulatory environments and has engaged external legal advisors to ensure compliance with contractual arrangements and applicable laws[108]. - The company has implemented measures to manage risks, including controlling costs, enhancing internal monitoring, and attracting and retaining talent to support business expansion[108]. - The company emphasizes the importance of internal control and risk management systems, as detailed in its annual report[111]. Employee and Training - The group has 294 full-time employees as of December 31, 2021, with 244 in game development and operations, 33 in game support, and 17 in administrative and senior management roles[121]. - The group regularly conducts training programs for employees to enhance their skills in game development and operations[80]. - The group has provided various training programs for employees to enhance their knowledge in game development and operations[121]. Share Options and Capital Management - The maximum number of shares that can be issued upon the exercise of options granted under the post-IPO share option scheme and any other plans is capped at 10% of the total issued shares as of the listing date, which is 73,755,912 shares[148]. - As of December 31, 2021, the total number of shares that may be issued upon the exercise of options granted under the post-IPO share option scheme is 42,589,744 shares, equivalent to approximately 6.00% of the issued share capital[148]. - The board will review the dividend policy as necessary, considering factors such as financial performance, cash flow, and future operational needs[130]. - The company has no predetermined dividend payout ratio, and the board has the discretion to declare dividends based on various factors[130]. - The company has appointed a trustee to manage and allocate shares granted under the pre-IPO share option plan[157]. Market and Distribution - The company generates most of its revenue through major social media platforms, online app stores, and third-party payment providers; any adverse developments in these distribution and payment channels could negatively impact business performance[102]. - The company aims to maintain and expand its game distribution platforms, deepen market penetration, and explore new domestic and international markets[108]. - The group has established strong relationships with various game distribution platforms, including Facebook and App Store, to reach end customers[122].