网龙(00777) - 2023 - 中期财报

Revenue Performance - Revenue for the first half of 2023 was RMB 3.7 billion, a decrease of 13% year-on-year[7]. - Game business revenue reached RMB 1.9 billion, accounting for 52% of total revenue, with an 8% year-on-year increase[7]. - Education business revenue was RMB 1.7 billion, representing 47% of total revenue, down 29% year-on-year[7]. - Revenue for the six months ended June 30, 2023, was RMB 3,681 million, a decrease of 13.2% compared to RMB 4,240 million for the same period in 2022[73]. - Revenue from online and mobile games was RMB 1,920 million, an increase of 8.1% compared to RMB 1,776 million in the previous year[91]. - Education revenue, including sales of educational equipment and related services, was RMB 1,720 million, down 28.7% from RMB 2,410 million in the same period last year[91]. - Revenue from mobile solutions, products, and marketing was RMB 41 million, slightly up from RMB 38 million in the previous year[91]. - Revenue from the Chinese market was RMB 1,790 million, while revenue from the United States was RMB 1,463 million, indicating a significant contribution from both regions[96]. Profitability Metrics - Gross profit amounted to RMB 2.3 billion, a decrease of 2% year-on-year[7]. - Operating profit was RMB 699 million, a decrease of 6% year-on-year[7]. - Non-GAAP operating profit was RMB 692 million, down 19% year-on-year[7]. - Net profit for the period was RMB 453 million, a decrease of 16.5% compared to RMB 542 million in the prior year[74]. - Basic earnings per share for the period was RMB 92.61, down from RMB 104.42 in the same period last year[74]. - The company reported a profit before tax of RMB 579 million for the six months ended June 30, 2023, compared to RMB 713 million in the same period of 2022, reflecting a decrease of approximately 18.8%[99]. - The company reported a profit of RMB 500 million for the six months ended June 30, 2023, a decrease of 11.5% compared to RMB 565 million for the same period in 2022[109]. Dividends and Shareholder Returns - The company announced an interim special dividend of HKD 1.0 per share and an interim dividend of HKD 0.4 per share[7]. - The interim special dividend and interim dividend declared for the six months ending June 30, 2023, are HKD 1.0 and HKD 0.4 per ordinary share, respectively, totaling HKD 1.4 per share[38]. - The total dividend amount for the six months ending June 30, 2023, is expected to be distributed on or around November 30, 2023[38]. - The board declared an interim special dividend of HKD 1.0 per share and an interim dividend of HKD 0.4 per share, compared to HKD 0.5 and HKD 0.4 per share in 2022[62]. Cash Flow and Financial Position - As of June 30, 2023, the group's cash and cash equivalents amounted to approximately RMB 4,173 million, an increase from RMB 3,909 million as of December 31, 2022[19]. - The group's net current assets as of June 30, 2023, were approximately RMB 3,878 million, compared to RMB 3,723 million as of December 31, 2022[19]. - The total assets as of June 30, 2023, amounted to RMB 7,031 million, an increase from RMB 6,687 million at the end of 2022[75]. - Cash and cash equivalents were RMB 3,645 million, slightly down from RMB 3,701 million at the end of 2022[75]. - The company reported a significant increase in interest expenses on convertible and exchangeable bonds, rising to RMB 108 million from RMB 90 million, an increase of 20%[79]. - The company’s total liabilities increased to RMB 1,583 million, up from RMB 1,468 million, indicating a rise of 7.8%[76]. - The company's equity attributable to owners increased to RMB 7,132 million, a rise of 3.4% from RMB 6,899 million[76]. Employee and Talent Management - As of June 30, 2023, the total number of employees in the group reached 5,207, an increase from 5,135 at the end of 2022 and 4,784 a year earlier[27]. - The company attracted 501 new talents in the first half of 2023, including 62 senior elite talents, and conducted campus recruitment activities that attracted 9,233 graduates[28]. - Total employee costs increased to RMB 1,170 million in the first half of 2023, up from RMB 1,043 million in the same period of 2022, reflecting a rise of 12.2%[107]. - The remuneration for directors and other key management personnel for the six months ended June 30, 2023, was RMB 94 million, up from RMB 66 million in the same period of 2022, representing a 42.4% increase[146]. Market and Product Development - The company aims to enhance revenue growth in its education business by strengthening product segmentation and integrating AI tools into its products[17]. - The launch of the new interactive panel ActivPanel LX aims to capture a larger market share in the cost-effective segment[10]. - The company is developing a flagship mobile game version 2.0 for "Honor of Kings" aimed at the overseas market[13]. - Multiple AIGC projects have been initiated to enhance player experience, focusing on NPCs and AI companions[12]. - The company has plans for market expansion and new product development, focusing on mobile solutions and educational products[98]. Corporate Governance and Shareholder Structure - Liu Dejian holds a beneficial interest of 40.75% in the company through DJM Holding Ltd., which owns 35.99% of the voting shares[41]. - DJM Holding Ltd. holds 35.99% of the company's shares, making it the largest shareholder[46]. - International Data Group owns approximately 10.08% of the company's shares, alongside Ho Chi Sing, who also holds 10.08%[46][47]. - The company maintains transparency regarding the interests and holdings of its directors and key executives in the company's shares[40]. Financial Instruments and Investments - The company issued convertible and exchangeable bonds totaling $150 million, equivalent to approximately HK$1,174.5 million, which can be converted into 279,510,479 ordinary shares of Best, representing 11.16% of the total issued share capital[57]. - The total amount of convertible and exchangeable bonds was RMB 1,469 million as of June 30, 2023, up from RMB 1,333 million as of December 31, 2022[125]. - The group holds a 40% stake in Yunqi Smart Technology Co., Ltd., a joint venture[143]. - The group holds a 60% stake in Fujian Guoteng Information Technology Co., Ltd., a joint venture[143]. Sustainability and Corporate Responsibility - The company improved its S&P Global Sustainability score to 40, ranking in the top 7% of the interactive media, services, and home entertainment industry[10]. - The company has received multiple awards, including recognition for outstanding corporate social responsibility and competitiveness in the gaming industry[18].