Financial Performance - Total revenue for the first half of 2022 amounted to RMB1,183.9 million, representing an increase of 16.6% from RMB1,015.2 million for the corresponding period in 2021[20]. - Gross profit increased by 7.1% on a period-on-period basis to RMB151.7 million[20]. - Operating profit increased by 2.4% on a period-on-period basis to RMB78.4 million[20]. - Profit after tax increased by 3.8% on a period-on-period basis to RMB58.7 million[20]. - Revenue from mobile advertising amounted to RMB 1,130.0 million, representing a 17.4% increase year-on-year[25]. - Revenue from online video distribution and game co-publishing services was RMB 41.1 million and RMB 2.3 million, respectively[25]. - Mobile advertising revenue increased by 17.4% to RMB 1,130.0 million for the six months ended June 30, 2022, up from RMB 962.7 million in the prior year[43]. - Revenue from online-video distribution services decreased by 11.6% to RMB 41.1 million, down from RMB 46.5 million in the same period of 2021[57]. - Revenue from game co-publishing services decreased to RMB 2.3 million from RMB 5.9 million, representing a decline of 61.7%[44]. - Adjusted EBITDA for the period was RMB 94.0 million, reflecting a 7.9% increase from RMB 87.1 million in the prior year[39]. - Adjusted net profit increased by 9.6% to RMB 69.4 million, compared to RMB 63.3 million in the same period of 2021[39]. Business Strategy and Operations - The company continued to strengthen adaptability and resilience to stabilize business operations amid pandemic conditions[19]. - Increased and deepened communications with Android-based ecosystem participants to promote industry standards[19]. - The company believes coordinated advancements with ecosystem participants will facilitate healthier ecological development[19]. - The company aims to sustain growth in the Android-based ecosystem despite challenging circumstances[19]. - The performance improvement is attributed to experiences accumulated over two years of operations amid the pandemic[20]. - The company is focused on empowering the Android-based ecosystem through service provision[19]. - The company plans to enhance its service system for alliances and continue investments in research and development to provide more accurate and efficient services[28]. - The Quick App technology is expected to expand its application in smart vehicles, with collaborations anticipated with more automotive brands[27]. - In the second half of 2022, the company will focus on promoting cooperation with automotive enterprises and in-vehicle application developers to enhance service quality for smart vehicle consumers[28]. - The company aims to explore new vertical sectors while optimizing its business strategies[31]. Financial Position and Assets - Cash and bank balances increased by 8.1% to RMB480.8 million as at 30 June 2022, compared to RMB444.9 million as at 31 December 2021[88][89]. - Bank borrowings increased by 13.5% from RMB171.6 million as at 31 December 2021 to RMB194.8 million as at 30 June 2022[88]. - Current assets grew by 4.8% to RMB1,648.96 million as at 30 June 2022, compared to RMB1,572.88 million as at 31 December 2021[88]. - Total equity increased by 5.4% from RMB1,390.91 million as at 31 December 2021 to RMB1,466.29 million as at 30 June 2022[88]. - The company's net current assets increased to RMB 1,205.5 million as of June 30, 2022, compared to RMB 1,138.3 million as of December 31, 2021, driven by higher cash and accounts receivable[96]. - The current ratio improved to 3.7 as of June 30, 2022, from 3.6 as of December 31, 2021, due to increases in accounts receivable and cash[107]. - The gearing ratio decreased to 23.6% as of June 30, 2022, from 24.6% as of December 31, 2021, mainly due to an increase in total assets[107]. Shareholder Information - Mr. Gao Dinan and Mr. Zheng Wei each held a long position of 475,940,800 shares, representing approximately 31.19% of the Company[120][122]. - Mr. Nie Xin held a long position of 1,587,000 shares, representing approximately 0.10% of the Company[123]. - The total number of shares in issue as of June 30, 2022, was 1,525,743,350[126]. - The company granted 62,500,000 restricted share units (RSUs) to 76 grantees under the 2016 Share Incentive Scheme as of June 30, 2022[143]. - The purpose of the 2016 Share Incentive Scheme is to incentivize directors, senior management, and employees for their contributions to the company[139]. - The 2016 Share Incentive Scheme was approved on January 6, 2016, and amended on May 24, 2018[139]. - The total number of shares held by Korea Investment Partners Co., Ltd. and Korea Investment Holdings Co., Ltd. includes 98,231,500 and 6,059,930 shares respectively[139]. Governance and Compliance - The Company has complied with all applicable code provisions set out in the CG Code for the six months ended June 30, 2022, except for the deviation regarding the separation of the roles of Chairman and Chief Executive Officer[173]. - The Company believes that having the same individual serve as both Chairman and Chief Executive Officer ensures consistent leadership and effective strategic planning[173]. - The Audit Committee reviews the effectiveness of the risk management and internal control systems on an annual basis, ensuring adequate measures are in place[178]. - The Company has established a risk management system that outlines roles, responsibilities, and relevant policies to address potential risks[185]. - The management conducts an annual fraud and bribery risk assessment, which is reviewed and approved by the Audit Committee[184]. - The Company plans to provide ongoing training programs regarding relevant PRC laws and regulations to its Directors and employees[184]. - The Audit Committee assists the Board in supervising the overall risk status of the Company and evaluating changes in major risks[186]. - The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the CG Code[173]. Employee and Director Information - The Group had 233 employees as of June 30, 2022, with remuneration determined based on experience, qualifications, and market conditions[194]. - Ms. Jiang Yu appointed as executive director effective July 20, 2022, with over 15 years of experience in the technology industry[200]. - Mr. Yu Limin appointed as independent non-executive director, member of the Audit Committee and Nomination Committee, effective July 20, 2022, with over 20 years of experience in financial management and investment[200].
万咖壹联(01762) - 2022 - 中期财报