联众(06899) - 2023 - 中期财报

Business Growth and Revenue - The Company reported steady growth in its domestic business, particularly in the "game hall" and mobile game sectors, with continuous revenue increase in the first half of 2023[6]. - Active users and service experience in the PC game business improved significantly, contributing to sustainable revenue growth[7]. - New mobile-based game products launched in the first half of 2023, such as Farmers Fight Landlord and Two-Experts Mahjong, gained market recognition and increased revenue[11]. - AGAE's in-person revenue and multiplatform content revenue continuously increased, with a new naming rights agreement for HyperX Arena Las Vegas[17]. - The Group's income tax expense was RMB0.2 million, compared to RMB1,000 for the corresponding period in 2022[41]. - Revenue for the six months ended June 30, 2023, was RMB 162,432,000, a significant increase of 123.5% compared to RMB 72,693,000 in the same period of 2022[153]. - Total revenue for the Group for the six months ended June 30, 2023, was RMB 162,432,000, representing a significant increase of 123.5% compared to RMB 72,693,000 in the same period of 2022[194]. Financial Performance - For the six months ended June 30, 2023, the Group's revenue amounted to RMB162.4 million, representing an increase of RMB89.7 million or 123.4% compared to RMB72.7 million for the same period in 2022[23]. - The cost of revenue for the same period was RMB109.2 million, an increase of RMB73.7 million or 207.3% compared to RMB35.5 million in the prior year, resulting in a gross profit margin decrease from 51.1% to 32.8%[24]. - Gross profit for the same period was RMB 53,211,000, up 43.2% from RMB 37,147,000 year-over-year[153]. - The loss attributable to equity holders of the Company was RMB22.8 million for the six months ended June 30, 2023, compared to RMB25.6 million for the same period in 2022[22]. - The total comprehensive loss for the period was RMB 6,244,000, improving from a loss of RMB 14,432,000 in the same period last year[155]. - The total comprehensive loss for the first half of 2023 includes other comprehensive losses of RMB 8,196,000 due to currency translation[161]. - The total number of shares issued as of June 30, 2023, is 1,077,799,887[85]. Expenses and Cost Management - Selling and marketing expenses decreased to RMB7.8 million, down RMB6.7 million or 46.1% from RMB14.5 million in the same period last year[26]. - Administrative expenses were RMB56.3 million, a decrease of RMB11.6 million or 17.1% compared to RMB67.9 million for the same period in 2022[32]. - Research and development expenses increased to RMB15.8 million, up RMB7.3 million or 86.9% from RMB8.5 million in the prior year, reflecting increased efforts in updating online games[33]. - The total remuneration expenses for the six months ended June 30, 2023, were RMB30.9 million, a decrease of 28.1% compared to the same period in 2022[62]. Cash Flow and Liquidity - As of June 30, 2023, the Group's total bank balances and cash increased by 136.8% to RMB206.7 million from RMB87.3 million as of December 31, 2022[43]. - The net cash from operating activities for the first half of 2023 was RMB 9,660,000, compared to a net cash used of RMB 42,233,000 in the same period of 2022, indicating a significant turnaround[165]. - Cash flows from investing activities showed a net cash inflow of RMB 113,250,000 for the six months ended June 30, 2023, compared to RMB 12,790,000 in the prior year, reflecting increased investment activity[165]. - The company experienced a net increase in cash and cash equivalents of RMB 115,830,000 during the first half of 2023, contrasting with a decrease of RMB 33,551,000 in the same period of 2022[165]. Shareholder Information and Equity Incentives - The interests of the Directors and chief executives in the shares of the Company as of June 30, 2023, included Mr. Lu holding 22 million shares (2.04%)[75]. - The shareholding structure indicates significant concentration, with several shareholders controlling over 20% of the company's equity[83]. - The Company has adopted three share option schemes to incentivize performance and retain key participants[86]. - The total number of share options available for grant under the Management Pre-IPO Share Option Scheme was nil as of both January 1, 2023, and June 30, 2023[95]. - The total number of share options available for grant under the 2014 Share Option Scheme remained at 72,279,037[102]. - The total stock options granted as of June 30, 2023, amounted to 11,453,374, with 952,248 vested during the period[110]. Legal Proceedings and Contingencies - The company provided loans totaling HK$62,484,799 to Fast Express, which failed to repay the loans as scheduled, leading to legal actions against Merit Horizon and Ms. Fu[133]. - An arbitration was initiated against Merit Horizon for breach of the loan agreement, claiming an aggregate amount of no less than HK$97,948,090.47, including principal, accrued interest, and damages as of December 31, 2021[136]. - The company filed a civil litigation against Glassy Mind Holdings Limited and former directors for unpaid principal and accrued interest under loan agreements, with proceedings still in progress[140]. - The company has not been involved in any other material legal proceedings or arbitrations during the six months ended June 30, 2023[143]. Strategic Focus and Future Outlook - The Company aims to expand its gaming and entertainment business in various markets, including live influencer events and online eSports tournaments[17]. - The Company continues to focus on developing a mind sports ecosystem that integrates online games, competitive events, and offline experiences[18]. - The company has been expanding its eSports and sports e-commerce business globally, indicating a strategic shift towards new internet businesses[168]. - Future guidance remains cautious, with an emphasis on cost management and efficiency improvements to mitigate losses[200]. - The overall financial performance highlights the need for strategic adjustments in response to market conditions[200].