家乡互动(03798) - 2023 - 中期财报

Financial Performance - The company reported a 22.0% increase in revenue, a 16.1% increase in gross profit, and a 12.7% increase in adjusted net profit for the six months ending June 30, 2023, compared to the previous year[17]. - The company's revenue for the reporting period reached RMB 953.5 million, representing a year-on-year increase of 22.0%[21]. - Gross profit for the same period was RMB 640.8 million, reflecting a growth of 16.1% compared to the previous year[21]. - Profit before tax increased by approximately 54.2% from RMB 291.6 million to RMB 449.5 million, with the profit margin rising from 37.3% to 47.1%[33]. - Adjusted net profit attributable to the company's owners increased by approximately 12.7% from RMB 395.5 million to RMB 445.6 million for the six months ended June 30, 2023[37]. - The company reported a profit of RMB 395,293,000 for the six months ended June 30, 2023, compared to RMB 380,299,000 for the same period in 2022, indicating a year-on-year increase[90]. User Engagement and Growth - Daily Active Users (DAUs), Monthly Active Users (MAUs), and paying players grew by 41.5%, 21.9%, and 2.8% year-over-year, respectively[17]. - Daily Active Users (DAUs) increased to 14,247,326, a year-on-year growth of 41.5%[21]. - Monthly Active Users (MAUs) rose to 67,949,141, marking a 21.9% increase year-on-year[21]. - The number of paying users reached 9,230,631, up 2.8% year-on-year[21]. - Over 2.5 million players registered to become Mahjong players through the company's platform by June 30, 2023, following the launch of a certification platform[18]. - The company organized over ten national and regional Mahjong tournaments with more than 6,000 participants during the reporting period[18]. Cost and Expenses - Sales costs increased by 36.1%, with payment channel costs and platform share rising to RMB 267.4 million, a 42.0% increase year-on-year[22]. - Marketing expenses decreased by approximately 40.1% to RMB 129.7 million due to better-than-expected player recharge conditions[22]. - Administrative and other expenses rose by approximately 61.7% from RMB 90.5 million to RMB 146.4 million, driven by increases in employee costs and subcontracted technical fees related to new game development[32]. - Selling and marketing expenses decreased by approximately 40.1% from RMB 216.6 million to RMB 129.7 million due to better-than-expected player recharge conditions[31]. Strategic Initiatives - The company signed a popular streamer, Feng Timo, on July 6, 2023, and conducted her first Douyin live stream on August 12, 2023, enhancing user engagement[17]. - The introduction and application of AIGC technology are aimed at improving game development efficiency and enhancing operational management[19]. - The company continues to explore innovative development opportunities to create long-term value for shareholders[19]. - The company plans to expand its game portfolio and enhance market penetration in over 30 cities in provinces like Zhejiang and Fujian in the second half of 2023[23]. - The company aims to explore potential business opportunities through strategic partnerships and acquisitions to enhance its game offerings[24]. Cash Flow and Financial Position - As of June 30, 2023, the company had cash and cash equivalents of approximately RMB 1,156.0 million, a slight decrease from RMB 1,163.3 million as of December 31, 2022[39]. - The company reported capital expenditures of approximately RMB 71.2 million for the six months ended June 30, 2023, compared to RMB 17.6 million for the same period in 2022, primarily due to increased spending on office furniture and equipment[42]. - The company had no short-term or long-term bank borrowings as of June 30, 2023, and total lease liabilities amounted to RMB 9.3 million[40]. - The company's debt-to-asset ratio was zero as there were no liabilities reported as of June 30, 2023[41]. - The company reported a significant increase in cash flow from operating activities, reflecting improved operational efficiency and revenue generation[58]. Investments and Acquisitions - The company plans to sell a 40% stake in Jilin Xinyue for RMB 99.90 million and a 40% stake in Jilin Anrui for RMB 35.10 million as part of its future investment strategy[43]. - The company is actively exploring potential mergers and acquisitions to enhance its market position and drive growth[56]. - The company has invested in several joint ventures, including Chengdu Cangmo Information Technology Co., Ltd. and Shenzhen Jinyunshan Technology Co., Ltd., both with a 40% ownership stake[96]. Shareholder and Equity Information - The company’s major shareholder, Mr. Wu Chengze, holds a 33.80% equity interest, amounting to 433,842,000 shares[140]. - The company has a significant concentration of ownership, with major shareholders holding substantial percentages of equity[146][147]. - The company has established a series of contractual arrangements to exercise actual control over its subsidiaries, ensuring significant economic benefits from their operations[161]. Corporate Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Wu Chengze[162]. - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim results and confirmed compliance with applicable accounting principles[164]. - There were significant changes in the board of directors, including the resignation of Wu Chengze as CEO on September 5, 2023, and the appointment of Ding Chunlong and Tang Yinghao as executive directors on March 30, 2023[165].