BOYAA(HK:00434)2023-04-28 09:01Financial Performance - In 2022, the company recorded revenue of approximately RMB 375.3 million, an increase of about 2.5% compared to 2021[6]. - The adjusted net profit for 2022 was approximately RMB 67.1 million, a significant turnaround from an adjusted loss of RMB 4.0 million in 2021[8]. - The company's gross profit for 2022 was RMB 245.8 million, slightly up from RMB 245.0 million in 2021[11]. - The total comprehensive income for the year was RMB 114.5 million, compared to a comprehensive loss of RMB 41.1 million in 2021[11]. - In Q4 2022, the company achieved an adjusted net profit of approximately RMB 28.6 million, representing a year-on-year increase of about 167.5%[14]. - For the year ended December 31, 2022, the company's revenue was approximately RMB 375.3 million, an increase of about 2.5% compared to RMB 366.2 million for the year ended December 31, 2021[20]. - The net financial income for 2022 was approximately RMB 29.1 million, an increase from RMB 19.5 million in 2021, primarily due to higher interest income[28]. - The profit attributable to owners of the company for the three months ended December 31, 2022, was approximately RMB 27.8 million, representing an increase of about 166.3% compared to RMB 10.4 million in the same period of 2021[46]. User Metrics - The number of paying users decreased by approximately 12.2% from about 0.25 million in Q4 2021 to about 0.22 million in Q4 2022[16]. - Daily active users fell by approximately 8.2% from about 1.3 million in Q4 2021 to about 1.2 million in Q4 2022[16]. - Monthly active users increased slightly by 0.8% year-on-year, from 4,006,000 to 4,040,000[82]. - The number of web game daily active users increased by 5.7%, from 88,000 to 93,000[82]. - The number of mobile game daily active users decreased by 9.2%, from 1,201,000 to 1,090,000[82]. - The number of web game monthly active users increased significantly by 39.2%, from 237,000 to 330,000[82]. - The number of mobile game monthly active users decreased by 1.6%, from 3,769,000 to 3,710,000[82]. Cost and Expenses - The cost of revenue increased by approximately 6.8% to RMB 129.4 million for the year ended December 31, 2022, up from RMB 121.2 million in the previous year[21]. - Sales and marketing expenses increased by approximately 25.1% to RMB 35.4 million, representing about 9.4% of total revenue, up from 7.7% in the previous year[24]. - Administrative expenses rose by approximately 1.6% to RMB 98.6 million for the year ended December 31, 2022, compared to RMB 97.0 million in the prior year[25]. - The total employee costs for the year ended December 31, 2022, amounted to approximately RMB 84.4 million, representing about 32.0% of the company's total expenses[68]. Strategic Focus and Plans - The company plans to continue focusing on high-quality intellectual competitive online games and events in 2023[10]. - The company aims to enhance product diversification and user experience through ongoing market research and game development[9]. - The company aims to expand its domestic and international game markets and explore new operational models[18]. - The company will enhance its infrastructure and game features to improve user experience and service quality[18]. Corporate Governance and Compliance - The board does not recommend the payment of a final dividend for the year ended December 31, 2022 (2021: none)[108]. - The company has not entered into any agreements for significant acquisitions, investments, or capital assets as of the report date[63]. - The group has maintained compliance with all relevant Chinese laws and regulations during the fiscal year ending December 31, 2022, obtaining all necessary licenses and approvals[96]. - The group has implemented an upgraded system to prevent minors from becoming addicted to online games, in accordance with various regulations issued by Chinese authorities[99]. Risk Management - The company continues to face major risks and uncertainties in its operations[86]. - The main product series "Texas Poker" accounted for over 60% of past revenues, and any failure to maintain or enhance the performance of these games could adversely affect the company's business and operating results[87]. - The company may struggle to continuously improve existing games, enhance player experience, and launch new high-quality games and services, which could significantly impact its ability to retain existing players and attract new ones[87]. - The interpretation of Chinese laws and regulations related to contractual arrangements remains unclear, which may lead to significant compliance costs for the company in the future[89]. Shareholder Information - As of December 31, 2022, the company had a total of 709,876,301 shares issued[161]. - Major shareholders include Mr. Zhang Wei with 246,237,474 shares (34.69%) and Cantrust (Far East) Limited with 282,737,474 shares (39.83%)[163]. - The top five payment channels contributed approximately 62.8% of the total revenue, with Google being the largest channel at 21.5%[168]. Contractual Arrangements - The group operates through contractual arrangements with BoYa Shenzhen, allowing it to maintain effective control over financial and operational policies while complying with Chinese regulations[188]. - The contractual arrangements include six agreements, such as exclusive consulting and service agreements, business operation agreements, and intellectual property licensing agreements[189]. - The group can consolidate BoYa Shenzhen's financial performance into its own under international financial reporting standards, treating it as a wholly-owned subsidiary[191].