FINGERTANGO(06860)2023-09-28 13:11Financial Performance - The company recorded revenue of approximately RMB 312.6 million, a decrease of about 20.4% compared to the same period last year[15]. - The loss attributable to owners of the company was approximately RMB 21.0 million, down from RMB 63.7 million in the same period last year, indicating a reduction in losses[15]. - The decline in revenue was attributed to several factors, including the maturity of classic games, strategic adjustments in new product launches, and a lack of consumer spending recovery during the early stages of economic recovery[15]. - Revenue for the six months ended June 30, 2023, was RMB 312.6 million, a decrease of 20.4% compared to RMB 392.8 million for the same period in 2022[45]. - Gross profit for the same period was RMB 174.8 million, down from RMB 248.0 million, reflecting a gross margin decline[45]. - Operating loss for the six months ended June 30, 2023, was RMB 23.7 million, an improvement from a loss of RMB 73.3 million in the prior year[45]. - The company reported a total comprehensive income loss of RMB 11,686,000 for the six months ended June 30, 2023, compared to a loss of RMB 49,437,000 for the same period in 2022[51]. - The company reported a loss of RMB 21,047,000 for the six months ended June 30, 2023, compared to a loss of RMB 63,695,000 for the same period in 2022, indicating a significant improvement in performance[86]. Market Trends - The mobile gaming market in China generated actual sales revenue of RMB 1,067.05 billion in the first half of 2023, a decrease of 3.41% year-on-year[12]. - The gaming industry in China is experiencing intensified competition as the growth of the user base slows down due to the diminishing population dividend[12]. - The number of online game licenses issued by the National Press and Publication Administration reached 549 in the first half of 2023, surpassing the total of 512 for the entire year of 2022[13]. - The overseas market revenue for self-developed games from China was USD 8.206 billion in the first half of 2023, a decrease of 8.72% year-on-year[12]. - The user base for online games in China reached 668 million in the first half of 2023, reflecting a year-on-year growth of 0.35%[13]. Cost Management - The company faced challenges in advertising and promotional costs, which have been increasing annually, impacting marketing effectiveness[13]. - Sales and marketing expenses decreased by approximately 43.3% to RMB 144.7 million, accounting for about 46.3% of total revenue[29]. - Research and development expenses increased by approximately 13.3% to RMB 40.0 million, primarily due to increased employee benefits[32]. - The company is adjusting its strategies in response to rising advertising costs and uncertain promotional effectiveness[21]. Strategic Initiatives - The company plans to launch new games in the second half of 2023, focusing on optimizing product strategies and leveraging big data analytics[19]. - The company aims to enhance user engagement and extend the product lifecycle through continuous innovation and optimization[18]. - The company plans to continue investing in new technologies and market expansion strategies to enhance growth prospects[58]. - The company has established a new board committed to recovering the outstanding secured note, with legal actions initiated to expedite the settlement process[109]. Assets and Liabilities - As of June 30, 2023, the group's current assets amounted to approximately RMB 810.2 million, with cash and bank balances of about RMB 512.5 million[35]. - The current liabilities were approximately RMB 216.1 million, resulting in a current ratio of 3.8, up from 3.5 as of December 31, 2022[35]. - The group reported investments at fair value through profit or loss of approximately RMB 250.2 million as of June 30, 2023, with a significant increase in the value of certain financial products[37]. - Total liabilities decreased to RMB 232,116,000, a reduction of 16.6% from RMB 278,449,000[49]. - Cash and cash equivalents at the end of the period were RMB 512,474,000, down 25% from RMB 682,799,000[54]. Shareholder Information - As of June 30, 2023, Liu Jie holds 1,007,837,500 shares, representing approximately 52.18% of the company's equity[114]. - Major shareholders include LJ Technology Holding Limited with 52.18%, ZYB Holding Limited with 7.68%, and ACERY Holding LIMITED with 5.36% of the equity[118]. - The company has not declared or recommended any dividends for the six months ended June 30, 2023, consistent with the previous year[85]. Corporate Governance - The company has complied with all provisions of the corporate governance code, except for the separation of roles between the chairman and CEO, which are held by the same individual[129]. - The audit committee, consisting of independent non-executive directors, has reviewed the unaudited consolidated results for the reporting period and confirmed compliance with applicable accounting principles[132]. - The company has made significant changes in its board composition, including the resignation of several directors and the appointment of new independent non-executive directors[125]. - The company has adopted a standard code for securities trading by directors, ensuring compliance throughout the reporting period[128].