FEIYU(HK:01022)2022-04-22 08:50Financial Performance - Total revenue for the year 2021 was RMB 104,788,000, a decrease of 10.5% compared to RMB 117,004,000 in 2020[14] - Gross profit for 2021 was RMB 69,929,000, down from RMB 82,419,000 in 2020, reflecting a gross margin decline[14] - The company reported a loss before tax of RMB (73,574,000) for 2021, compared to a loss of RMB (16,900,000) in 2020[14] - The company reported a net loss attributable to owners of the parent of RMB (78,103,000) for 2021, compared to RMB (21,460,000) in 2020[14] - The basic and diluted loss per share for 2021 was RMB (0.05), compared to RMB (0.01) in 2020[14] - The company recorded a loss of RMB 76.6 million for the year, compared to a loss of RMB 21.5 million in the previous year[22] - The company reported a net loss of RMB 76.6 million for the year ended December 31, 2021, compared to a net loss of RMB 18.1 million in 2020, representing an increase of 322.5%[52] Assets and Equity - Total assets as of December 31, 2021, were RMB 668,500,000, an increase from RMB 634,063,000 in 2020[15] - Total equity increased to RMB 493,907,000 in 2021 from RMB 489,166,000 in 2020[15] - Non-current assets amounted to RMB 481,546,000, up from RMB 430,922,000 in the previous year[15] - Current liabilities were RMB 88,801,000, slightly up from RMB 84,217,000 in 2020[15] - The company’s net current assets decreased by 17.5% to approximately RMB 98.2 million as of December 31, 2021, from RMB 118.9 million in the previous year[74] Revenue Breakdown - The total revenue from game operations for the year ended December 31, 2021, was RMB 70,487 thousand, representing 67.2% of total revenue, compared to RMB 65,757 thousand or 56.2% in the previous year[39] - Game operations contributed approximately RMB 70.5 million in revenue, a year-on-year increase of about 7.2% from RMB 65.8 million in 2020, driven by updates to the "Defend the Carrot" series[42] - Online game distribution revenue decreased by approximately 75.3% to about RMB 7.2 million, primarily due to the late life cycle of "Kaji Adventure Team" and the maturity of "Soul Device Academy" in the first half of 2020[55] - Licensing and intellectual property-related income increased by approximately 29.4% to about RMB 6.9 million, mainly due to a one-time licensing fee of approximately RMB 2.0 million recognized after terminating a simulation game licensing agreement[55] - Advertising revenue increased by approximately 20.1% to about RMB 20.2 million, driven by collaboration with a new advertising platform[55] Game Development and Strategy - The company has nine game development teams focusing on various genres, including RPG and FPS[23] - The company launched three new mobile games in 2021 and updated an existing RPG game to enhance user experience[23] - The "Defend the Carrot" game series has accumulated over 6 million registered users, positioning the company favorably for IP licensing opportunities[23] - The company expanded its IP licensing activities by adding five new product partners for "Defend the Carrot" characters and images[23] - The company plans to launch "Defend the Carrot 4" and "Xianxian Road 3" in 2022, indicating a focus on developing sequels to popular games[18] - The company aims to enhance its R&D and game operation capabilities to develop engaging and innovative games for a diverse user base[19] - The company plans to launch 5 to 6 new mobile games targeting both domestic and international markets in 2022, including sequels to popular titles "Defend the Carrot 4" and "God仙道3"[31] User Engagement and Metrics - As of December 31, 2021, the company had approximately 229.1 million registered users for RPG mobile and online games, with 173.0 million for online games and 56.1 million for mobile games[43] - The average Monthly Active Users (MAU) for RPG mobile games decreased from approximately 25,000 in 2020 to 17,000 in 2021, while the MAU for casual games decreased from 102,000 to 88,000[46] - The Average Revenue Per Paying User (ARPPU) for online RPG games increased from RMB 147.0 in 2020 to RMB 164.5 in 2021, primarily due to increased spending by loyal players[50] - Casual games' ARPPU rose from RMB 9.9 in 2020 to RMB 16.7 in 2021, attributed to frequent updates and new features in the "Defend the Carrot" series[50] Research and Development - Research and development costs increased by 47.3% from RMB 56.8 million in 2020 to RMB 83.6 million in 2021, reflecting the company's focus on new game development[52] - The company has established a game content review team to ensure compliance with relevant laws and regulations, focusing on player health and safety[30] - The company is developing approximately 5 additional games planned for release in 2023 and beyond, either developed in-house or sourced from third-party developers[31] Cash Flow and Financing - The company recorded a net cash outflow from operating activities of RMB 53.2 million, compared to an outflow of RMB 35.5 million in the previous year, indicating a worsening cash flow situation[76] - Cash and cash equivalents decreased to approximately RMB 126.3 million as of December 31, 2021, down 9.3% from RMB 139.2 million at the end of 2020[76] - The company had bank loans totaling approximately RMB 80.0 million as of December 31, 2021, an increase from RMB 63.8 million in 2020, with a portion used for the construction of the R&D center[78] - The company’s financing activities generated a net cash inflow of RMB 112.1 million, contrasting with a net outflow of RMB 56.2 million in the previous year, indicating improved financing conditions[76] Employee and Organizational Structure - The company had a total of 464 full-time employees as of December 31, 2021, with 61.9% in development, 19.0% in operations, and 17.0% in administration[136] - The employee distribution by gender in 2021 showed 283 males and 171 females, while in 2020, there were 291 males and 173 females[185] - The company has adopted a post-IPO share option scheme and restricted share unit plan as part of its long-term incentive program[139] - Attractive employee benefits include a five-day work week, paid annual leave, discretionary bonuses, and training subsidies[194] Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) issues for long-term business success[160] - The board of directors is responsible for the company's ESG strategy and reporting, including risk identification and management[162] - The company has established an ESG working group to implement strategies and collect relevant data across departments[160] - The company supports the United Nations Sustainable Development Goals and has selected 7 relevant goals for its business activities[164] - The company is committed to reducing its environmental footprint, including greenhouse gas emissions and waste, while improving energy and water efficiency[182] - The company has implemented green operational policies to mitigate climate change impacts[182] - The company maintains a zero-tolerance policy towards discrimination, harassment, and bullying, ensuring a transparent career platform for employees[194] Community Engagement - The company has committed to community investment and collaboration with charitable organizations to enhance community resources[182] - The company organized fewer employee activities during the reporting year due to the pandemic but still focused on employee well-being through health and entertainment activities[199] - Special compensation leave and rewards were provided to employees affected by travel restrictions during the COVID-19 pandemic[198]