HOMELAND ITL(03798)2022-09-28 08:51Financial Performance - For the six months ended June 30, 2022, the company's revenue and gross profit were RMB 781.8 million and RMB 552.1 million, representing an increase of approximately 63.8% and 57.1% compared to the same period last year[11]. - The adjusted net profit for the same period was approximately RMB 391.6 million, an increase of about 24.1% from approximately RMB 315.6 million for the six months ended June 30, 2021[11]. - The company's revenue for the six months ended June 30, 2022, was approximately RMB 781.8 million, an increase of 63.8% compared to RMB 477.4 million for the same period in 2021[15]. - Daily active users (DAUs) increased to 10,369,762, representing a growth of 30.4% year-over-year, while monthly active users reached 60,544,023, up 18.6%[12]. - The number of paying players rose to 9,039,561, marking a 44.0% increase compared to the previous year[12]. - The total comprehensive income for the period was RMB 372.3 million, compared to RMB 306.3 million in the same period of 2021, indicating an increase of approximately 21.5%[39]. - The company reported a profit attributable to owners of RMB 380,299,000 for the six months ended June 30, 2022, compared to RMB 310,699,000 for the same period in 2021, representing a year-over-year increase of 22.4%[40]. - Basic earnings per share from continuing and discontinued operations increased to RMB 30.56, up from RMB 24.92 in the previous year, reflecting a growth of 22.5%[40]. Research and Development - The company significantly increased its R&D investment to approximately RMB 72.5 million, a year-on-year increase of 149.1%[11]. - The company is focusing on R&D investments to enrich its game pipeline and expand into overseas markets[14]. - Employee costs for the first half of 2022 totaled approximately RMB 86.8 million, up from RMB 44.5 million in the same period of 2021, reflecting an increase of about 94.9%[35]. Marketing and User Engagement - The company confirmed advertising revenue of RMB 59.7 million during the reporting period, with user engagement through ads incentivized by virtual rewards in games[11]. - Daily Active Users (DAUs) and player engagement significantly improved due to strategic partnerships with new media channels such as Douyin and Kuaishou[11]. - Marketing expenses surged by approximately 221.2% to RMB 216.6 million in 2022 from RMB 67.4 million in 2021, aimed at enhancing brand exposure in key regions[12]. - The company aims to increase market share in 50 cities across Zhejiang, Fujian, Anhui, and Jiangsu provinces in the second half of 2022[14]. Game Development and Portfolio Expansion - The company successfully launched new casual games, including "Encountering Meowks," which has received official game approval and is expected to be released within 2022[11]. - The company continues to innovate and introduce new elements in its existing Mahjong and Poker games to enhance player experience[11]. - The company is focused on diversifying its game portfolio through ongoing development of various game projects[11]. - The company plans to expand its game portfolio by introducing localized board and card games to attract users in lower-tier cities[14]. Financial Position and Cash Flow - Cash and cash equivalents amounted to approximately RMB 1,193.8 million as of June 30, 2022, up from RMB 1,125.2 million as of December 31, 2021[29]. - The company had no short-term or long-term bank borrowings as of June 30, 2022, except for lease liabilities totaling RMB 22.8 million[30]. - The net cash generated from operating activities was RMB 79,652,000, a decrease of 64.7% compared to RMB 225,605,000 in the same period last year[45]. - The company reported a net cash outflow from financing activities of RMB 20,068,000, compared to a net cash outflow of RMB 1,380,000 in the previous year[45]. Shareholder and Equity Information - The company repurchased a total of 9,478,000 shares at a total cost of RMB 13,902,000 (HKD 16,960,000) during the six months ended June 30, 2022[43]. - The company has a stock option plan that allows for the issuance of up to 10% of the total shares outstanding at the time of listing, which is 125,600,000 shares[94]. - The total number of stock options granted and yet to be exercised cannot exceed 30% of the total issued shares at any time[127]. - The share reward plan allows for a maximum of 3% of the total issued shares to be allocated in any financial year, with a limit of 1% in any 12-month period[130]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the reporting period, with a slight deviation regarding the roles of the chairman and CEO[134]. - The audit committee has reviewed the unaudited interim results and confirmed compliance with applicable accounting principles[137]. Future Outlook - The company aims to evolve from a leading local card game operator in China to a global casual competitive gaming platform[11]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[40].