Financial Performance - Total revenue for the first half of 2022 was approximately RMB 4,061.1 million, a year-on-year increase of 0.7% compared to RMB 4,032.2 million in the same period of 2021[12]. - Adjusted net profit for the first half of 2022 was approximately RMB 402.2 million, representing a significant increase of 150.8% compared to RMB 160.3 million in the same period of 2021[12]. - The company reported a net loss of approximately RMB 111.1 million for the first half of 2022, a decline of 178.0% compared to a profit of RMB 142.3 million in the same period of 2021[12]. - Gross profit for the first half of 2022 was RMB 1,728.0 million, reflecting a year-on-year increase of 22.8% from RMB 1,406.7 million in the same period of 2021[12]. - The group's revenue for the six months ended June 30, 2022, was approximately RMB 4,061.1 million, an increase of 0.7% compared to RMB 4,032.2 million for the same period in 2021[28]. - The group's gross profit for the same period was approximately RMB 1,728.0 million, representing a 22.8% increase from RMB 1,406.7 million in 2021, with a gross margin improvement from 34.9% to 42.6%[30]. - The net loss attributable to the company’s owners for the six months was RMB 109,915 thousand, compared to a profit of RMB 123,076 thousand in the same period last year[65]. - The total expenses for the six months ended June 30, 2022, were RMB 4,027,619 thousand, an increase from RMB 3,933,665 thousand in the same period of 2021, reflecting a rise of approximately 2.4%[124]. User Engagement - The number of monthly active users decreased by 35.8% year-on-year to 29,799 thousand from 46,428 thousand in the same period of 2021[14]. - The average revenue per user (ARPU) increased by 44.6% year-on-year to RMB 22.7 from RMB 15.7 in the same period of 2021[14]. Strategic Focus - The company plans to focus on the overseas entertainment sector in the second half of 2022, leveraging operational experience to penetrate new markets[17]. - The group plans to focus on expanding overseas markets, having already launched reading and social products in regions like Europe, America, and Southeast Asia[24]. - The group aims to explore the metaverse ecosystem further, with plans to develop more immersive interactive entertainment scenarios in the second half of 2022[25]. - The company underwent a brand upgrade in June 2022, rebranding to Inkeverse Group Limited to enter the metaverse market[16]. - The company aims to enrich and upgrade its products with metaverse elements and quickly enter the emerging Web3.0 field[17]. Expenses and Cost Management - Sales and marketing expenses decreased by 14.6% to approximately RMB 864.5 million, down from RMB 1,012.2 million in the previous year[31]. - Administrative expenses increased significantly by 561.0% to approximately RMB 616.7 million, primarily due to goodwill impairment of RMB 486.0 million[32]. - The sales cost for the six months ended June 30, 2022, was approximately RMB 2,333.1 million, a decrease of 11.1% from RMB 2,625.5 million in the previous year, resulting in a sales cost percentage of 57.4%[29]. - Research and development expenses were RMB 188,199 thousand, a decrease of 7.3% from RMB 202,914 thousand in the previous year[63]. - The company incurred a significant increase in advertising and promotion expenses, totaling RMB 836,394 thousand for the six months ended June 30, 2022, down from RMB 989,957 thousand in the same period of 2021, a decrease of about 15.5%[124]. Cash and Financial Position - As of June 30, 2022, the group had cash and cash equivalents of approximately RMB 2,163.2 million, an increase from RMB 1,993.3 million as of December 31, 2021[46]. - The group's current ratio was 4.0 and the debt ratio was 0.3 as of June 30, 2022, compared to 3.1 and 0.3 respectively as of December 31, 2021[45]. - The group’s capital expenditure for the six months ended June 30, 2022, was approximately RMB 7.6 million, significantly lower than RMB 218.6 million for the same period in 2021[52]. - The total cash and cash equivalents at the end of June 30, 2022, reached RMB 2,163,185 thousand, compared to RMB 1,093,607 thousand at the end of June 30, 2021, indicating a growth of approximately 97.7%[79]. - The company paid income tax of RMB 68,225 thousand in the first half of 2022, which is significantly higher than RMB 21,060 thousand in the same period of 2021[76]. - The company reported a net cash outflow from investing activities of RMB 190,957 thousand for the six months ended June 30, 2022, compared to RMB 233,395 thousand in the same period of 2021[78]. - The company incurred a loss of RMB 99,039 thousand in accumulated losses as of June 30, 2022, compared to RMB 281,429 thousand as of June 30, 2021[74]. Financial Assets and Liabilities - As of June 30, 2022, the group had financial assets at fair value through profit or loss amounting to approximately RMB 1,160.5 million, up from RMB 972.8 million as of December 31, 2021[47]. - The fair value changes of financial assets are recorded in the consolidated income statement under "other losses, net"[97]. - The total liabilities decreased to RMB 1,010,001 thousand from RMB 1,307,244 thousand, indicating a reduction of 22.7%[70]. - The company's total liabilities for accounts payable decreased to RMB 306,651,000 from RMB 499,141,000[161]. - The company’s total liabilities decreased to RMB 3,873,173 thousand as of June 30, 2022, from RMB 3,644,875 thousand as of January 1, 2022[74]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2022[60]. - The company did not declare or pay any dividends for the periods ended June 30, 2022, and 2021[136]. - The company repurchased shares amounting to RMB 15,778 thousand in the first half of 2022, compared to RMB 3,627 thousand in the same period of 2021[79]. - The weighted average number of ordinary shares issued was 1,857,624,000 shares for the six months ended June 30, 2022, slightly down from 1,869,020,000 shares in 2021[133]. - The diluted loss per share was RMB (0.06) for the six months ended June 30, 2022, compared to earnings of RMB 0.07 per share in the previous year[133]. Management and Governance - The total compensation for key management personnel was RMB 4,522,000 for the six months ended June 30, 2022, compared to RMB 4,929,000 for the same period in 2021, showing a decrease of approximately 8.2%[180]. - The company has no management contracts related to its business during the reporting period[193]. - The company aims to align the interests of its employees with its own through the stock option and restricted share unit plans[194].
映宇宙(03700) - 2022 - 中期财报