FEIYU(HK:01022)2023-04-25 09:20Financial Performance - The company's total revenue for the year ended December 31, 2022, increased by 82.8% year-on-year to RMB 191.5 million[9]. - The loss attributable to equity holders of the parent company narrowed by 62.1% year-on-year to RMB 29.6 million[9]. - Total assets as of December 31, 2022, amounted to RMB 625.7 million, a decrease from RMB 668.5 million in 2021[10]. - The total equity as of December 31, 2022, was RMB 456.5 million, down from RMB 493.9 million in 2021[10]. - The gross profit margin for 2022 increased by 1,378 basis points to 80.5% compared to the previous year[16]. - The company's total revenue for 2022 was approximately RMB 191.5 million, representing a year-on-year increase of 82.8%[16]. - The net loss attributable to the company's owners narrowed by 62.1% year-on-year to RMB 29.6 million in 2022[16]. - The revenue for the year ended December 31, 2022, was approximately RMB 191.5 million, an increase of 82.8% compared to RMB 104.8 million for the previous year[35]. - The gross profit rose by approximately 120.5% to RMB 154.2 million, with a gross margin of 80.5% for the year ended December 31, 2022, compared to 66.7% the previous year[40]. - The company reported a net loss of RMB 24.4 million for the year ended December 31, 2022, a reduction of 68.2% compared to a loss of RMB 76.6 million the previous year[35]. User Engagement and Game Development - The company has over 660 million users in a market valued at over RMB 1 trillion[11]. - The cumulative registered users for the "Defend the Carrot" series reached 672.1 million as of December 31, 2022, contributing significantly to the company's growth in 2022[12]. - The company launched three new games in 2022, including "Mushroom War 2," "Doubt," and "Defend the Carrot 4," with "Doubt" achieving over 1 million users and RMB 10 million in recharge consumption within its first week[17]. - The "Defend the Carrot 4" game achieved top rankings in multiple app stores upon release, including the Apple China App Store and TapTap[18]. - The average monthly active users (MAU) for RPG mobile and online games was approximately 0.4 million as of December 2022, with mobile games accounting for 0.3 million and online games for 0.1 million[30]. - The average monthly paying users (MPU) for mobile RPG games increased significantly to 75, up 341.2% from 17 in the previous year[31]. - The company plans to launch two major new games in 2023, "Xianxiandao 3" and "Meow Island," both of which have received publishing licenses[24]. - The company continues to implement various in-game promotions and updates to enhance user engagement and retention[33]. - The company aims to optimize existing games to extend their lifecycle and create long-tail value in 2023[13]. Market Challenges and Strategic Focus - The gaming industry in China is experiencing increased competition and tighter regulations, impacting growth dynamics[11]. - The company faced challenges in the online gaming industry, with total revenue in the sector declining by 10.3% year-on-year to RMB 265.9 billion in 2022[16]. - The company aims to leverage its diverse portfolio of popular games to drive growth in a challenging market environment[11]. - The company is focusing on developing original intellectual property to enhance brand recognition and user acquisition[11]. - The company plans to launch prequels and sequels of popular games to capitalize on existing user bases and brand strength[11]. Financial Position and Cash Flow - The net cash flow used in operating activities for 2022 was RMB (4,496) thousand, a significant improvement of 91.6% compared to RMB (53,226) thousand in 2021[55]. - The net cash flow from investing activities for 2022 was RMB 22,329 thousand, a turnaround of 131.6% from RMB (70,622) thousand in 2021[55]. - The total cash and cash equivalents at the end of 2022 amounted to approximately RMB 133.2 million, representing a year-on-year increase of 5.5% from RMB 126.3 million in 2021[55]. - The group’s financial assets measured at fair value through other comprehensive income amounted to approximately RMB 126.3 million as of December 31, 2022, down from RMB 179.8 million in 2021[57]. - The group’s debt-to-asset ratio as of December 31, 2022, was 27.0%, an increase from 26.1% as of December 31, 2021[84]. Corporate Social Responsibility and ESG Initiatives - The company is committed to corporate social responsibility through sustainable practices and community engagement initiatives[97][98]. - The company established an Environmental, Social, and Governance (ESG) working group to oversee its ESG strategies and report on performance[116]. - The company emphasizes the importance of stakeholder feedback on its ESG policies and performance[106]. - The company aims to create a healthy virtual gaming environment based on player interests and expectations[107]. - The company has implemented a consistent reporting framework for its ESG performance to allow stakeholders to make fair comparisons over time[104]. - The company is committed to implementing the United Nations Sustainable Development Goals, focusing on seven key areas related to sustainability[120]. - The company aims to reduce its environmental footprint, including greenhouse gas emissions and waste, while improving energy and water efficiency[121]. Employee Engagement and Development - The company employed 365 full-time employees as of December 31, 2022, with 59.2% in development roles[92]. - The employee turnover rate increased to 53% in 2022 from 37% in 2021, with a notable rise in turnover among employees aged 21 to 30, reaching 72%[140]. - The company provided a total of 1,690 training hours for employees in the current year, reflecting a commitment to employee development[157]. - The percentage of male employees receiving training was 63.71%, while female employees accounted for 36.29% of the training participants[158]. - The average training hours per employee were 2.85 for males and 3.32 for females in 2022[158]. Environmental Impact and Sustainability Efforts - The company reduced greenhouse gas emissions to 554.67 tons CO2 equivalent in 2022, compared to 487.55 tons in 2021[170]. - The total waste generated by the company was 318.98 tons, an increase from 255.36 tons in 2021[173]. - The total waste recycled was 157.49 tons, significantly up from 71.98 tons in 2021[173]. - The company implemented energy-saving measures to improve energy efficiency and reduce unnecessary energy consumption[168]. - The company aims to minimize daily operational waste and promote the "3R" concept of reducing, reusing, and recycling[168].