创梦天地(01119) - 2023 - 中期业绩

Financial Performance - Total revenue for the first half of 2023 was RMB 1,121,245 thousand, a decrease of 18.8% compared to RMB 1,381,472 thousand in the same period of 2022[2] - Gross profit for the first half of 2023 was RMB 505,769 thousand, down 15.5% from RMB 598,504 thousand year-on-year[2] - Adjusted net profit for the first half of 2023 reached RMB 201,831 thousand, a significant recovery from a loss of RMB 51,027 thousand in the same period of 2022[2] - Revenue for the six months ended June 30, 2023, decreased by 18.8% to approximately RMB 1,121.2 million compared to RMB 1,381.5 million for the same period in 2022[11] - Game revenue accounted for 95.0% of total revenue, amounting to RMB 1,065.1 million, down from RMB 1,284.4 million (93.0%) in the previous year[12][13] - Information services revenue decreased to RMB 40.5 million (3.6%) from RMB 48.0 million (3.5%) year-on-year, primarily due to a strategic reduction in in-app advertising[15] - IP derivative business revenue dropped significantly to RMB 11.4 million (1.0%) from RMB 41.9 million (3.0%) following its separation for independent operation[16] - The company recorded a profit of RMB 40.6 million for the six months ended June 30, 2023, compared to a loss of RMB 222.0 million in the same period of 2022[24] - Adjusted profit for the six months ended June 30, 2023, was RMB 201.83 million, compared to a loss of RMB 51.03 million in the same period of 2022, representing a significant turnaround[25] - EBITDA for the same period was RMB 154.75 million, compared to a loss of RMB 36.51 million in 2022, indicating improved operational performance[25] - Adjusted EBITDA increased to RMB 275.31 million from RMB 100.61 million year-over-year, reflecting a growth of 173.5%[30] Cost Management - Cost of revenue decreased by 21.4% to RMB 615.5 million, with the cost as a percentage of revenue declining from 56.7% to 54.9%[17] - Sales and marketing expenses fell by 73.0% to RMB 115.2 million, representing 10.3% of revenue, down from 30.9%[18] - General and administrative expenses decreased by 51.0% to RMB 42.9 million, accounting for 3.8% of revenue, down from 6.3%[19] - R&D expenses declined by 23.2% to RMB 141.6 million, representing 12.6% of revenue, down from 13.3%[20] - Total expenses for the six months ended June 30, 2023, amounted to RMB 916,158,000, a decrease of 39.2% compared to RMB 1,508,430,000 for the same period in 2022[51] Financial Position - Total cash and cash equivalents as of June 30, 2023, rose by 110.2% to approximately RMB 190.2 million from RMB 90.5 million at the end of 2022[31] - Total borrowings as of June 30, 2023, were approximately RMB 1,027.0 million, slightly up from RMB 1,011.2 million at the end of 2022[31] - Current assets were approximately RMB 2,061.3 million, while current liabilities were about RMB 1,899.0 million, resulting in a current ratio of 1.09, up from 0.87 at the end of 2022[33] - The debt ratio as of June 30, 2023, was 54.8%, down from 58.5% at the end of 2022, indicating improved financial stability[33] - The capital debt ratio was 71.2% as of June 30, 2023, compared to 80.5% at the end of 2022, showing a reduction in leverage[33] - The company reported a total equity of RMB 1,866,638 thousand as of June 30, 2023, an increase of 4.0% from RMB 1,794,542 thousand at the end of 2022[41] - Total liabilities decreased to RMB 2,262,184 thousand as of June 30, 2023, down 10.6% from RMB 2,529,176 thousand at the end of 2022[42] User Engagement and Growth - Core game revenue showed steady growth, with flagship titles like "Subway Surfers" and "Dream Garden" contributing significantly to user engagement and revenue[3] - The company is focusing on enhancing user engagement through the Fanbook platform, which supports over ten million users and aims to improve operational efficiency and user lifecycle value[5] - New gameplay features and community engagement strategies are being implemented to boost user interaction and retention across existing titles[4] - The company reported a significant increase in daily active users, with a total of 1.5 million daily active users, representing a 25% growth year-over-year[81] - Monthly active users reached 5 million, showing a 30% increase compared to the previous period[81] Future Outlook and Strategy - Future outlook indicates that self-developed games are expected to enter a harvest phase, driving new growth opportunities in 2023[8] - The company is committed to expanding its core gaming business while divesting from non-core operations to enhance revenue quality[6] - The company plans to continue its strategy of cost reduction and efficiency improvement, leading to a decrease in management and operational costs[6] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2024[82] - New product launches are expected to contribute an additional $50 million in revenue for the next fiscal year[82] - The company is investing $20 million in research and development for new gaming technologies[82] - A strategic partnership with Tencent is anticipated to enhance user engagement and retention rates by 10%[83] - The company aims for a revenue growth of 20% in the upcoming fiscal year, driven by new game releases and market expansion[82] - The board of directors has approved a share buyback program worth $10 million to enhance shareholder value[83] - The company is exploring potential acquisitions to diversify its product offerings and strengthen its market position[82] Shareholder and Governance - The company has resolved not to declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[57] - The company adopted the corporate governance code as its own governance code, ensuring compliance with applicable rules[74] - The company completed the repurchase and cancellation of RMB 758,000,000 of existing convertible bonds, representing 97.8% of the initial principal amount[77] - The conversion price of the existing convertible bonds was adjusted from HKD 4.99 to HKD 4.93 per share, increasing the maximum number of shares to be issued upon full conversion from 155,310,621 to 157,200,811 shares[77] - The company issued 164,177,200 shares at a price of HKD 3.10 per share to independent third parties on July 18, 2023[78] - The company issued HKD 386,000,000 of 5.00% convertible bonds due in 2028, convertible into a maximum of 106,043,956 shares[78]