ARCHOSAUR GAMES(HK:09990)2022-04-27 08:58Financial Performance - Archosaur Games Inc. reported a significant increase in revenue, achieving a total of $150 million for the fiscal year 2021, representing a 25% year-over-year growth[1]. - The company’s net profit for 2021 was $45 million, a 35% increase from the previous year, showcasing improved profitability[1]. - The gross margin for the year was reported at 60%, reflecting efficient cost management and strong sales performance[1]. - The company reported a revenue of RMB 1.5 billion for the fiscal year ending December 31, 2021, representing a year-over-year increase of 20%[26]. - The earnings guidance for 2022 is set at a revenue growth of 25%, projecting total revenue to reach RMB 1.875 billion[26]. - Revenue for the year ended December 31, 2021, was RMB 920.8 million, a decrease of 23.8% compared to RMB 1,208.8 million in 2020[62]. - Adjusted net loss for the year was RMB 237.7 million, compared to a profit of RMB 218.8 million in 2020, representing a 208.6% change[62]. - The company reported an operating loss of RMB 289.4 million in 2021, compared to an operating profit of RMB 83.1 million in 2020[40]. User Engagement and Growth - The company’s active user base reached 10 million, with a 15% increase compared to the previous year, indicating strong user engagement and retention[1]. - User engagement metrics showed a 15% increase in active users, reaching 10 million by the end of 2021[26]. - The total number of global cumulative users for the 11 operating games exceeded 130 million as of December 31, 2021[66]. - The game "Dragon Tribe Fantasy" generated cumulative revenue exceeding RMB 3.8 billion, with nearly 40 million registered users[66]. - The game "Under the Hongtu" achieved cumulative revenue of over RMB 1 billion and had over 6.2 million registered users by the end of 2021[67]. Research and Development - The company is investing heavily in R&D, allocating approximately $30 million, which is 20% of its total revenue, to develop new technologies and enhance existing game features[1]. - The company has allocated RMB 200 million for research and development of new technologies, focusing on enhancing gaming experiences with Unreal Engine 5[26]. - Research and development expenses increased to RMB 705.6 million in 2021, up 30.6% from RMB 540.4 million in 2020[40]. - The company is leveraging advanced technology, having successfully applied the latest version of Unreal Engine 4 to its current development products and is researching Unreal Engine 5 for future game development[57]. Market Expansion and Strategy - Archosaur Games Inc. provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% to $180 million, driven by new game releases and market expansion strategies[1]. - Archosaur Games Inc. plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[1]. - Market expansion efforts include entering Southeast Asian markets, targeting a 10% market share within two years[26]. - The company is exploring potential acquisitions to enhance its portfolio, with a budget of $50 million earmarked for strategic investments in complementary gaming companies[1]. - The company is exploring strategic acquisitions to enhance its portfolio, with a budget of up to RMB 500 million for potential targets[26]. Product Development and Launches - Archosaur Games Inc. launched two new games in Q4 2021, which contributed to a 30% increase in user acquisition during the launch period[1]. - The company plans to launch three new game titles in 2022, aiming for a revenue contribution of RMB 300 million from these titles within the first year[26]. - The anticipated release of the game "Noah's Heart" was delayed to 2022 to enhance game quality and player experience[47]. - Upcoming titles such as "Noah's Heart," "Avatar: Reckoning," and "In the Name of Shining" are expected to perform well in 2022[61]. - The company plans to launch 11 new games across various genres from 2022 to 2024[70]. Employee and Operational Insights - The company has expanded its workforce, adding 158 R&D personnel and 86 publishing and operations staff, increasing total employees from approximately 1,200 to about 1,500[55]. - Employee compensation and benefits costs amounted to RMB 644.8 million for the year ended December 31, 2021, compared to RMB 483.7 million for the previous year[124]. - The company is committed to providing competitive and fair compensation and benefits to employees, with regular performance evaluations conducted quarterly[124]. - The company has implemented measures to ensure employee safety during the COVID-19 pandemic, which has not significantly impacted its business operations or financial performance[88]. Sustainability and Corporate Responsibility - Archosaur Games Inc. emphasized its commitment to sustainability, aiming to reduce operational carbon emissions by 25% over the next three years[1]. - The company has implemented environmental policies and measures to reduce energy consumption and waste[142]. Shareholder and Financial Management - The board has approved a share buyback program of up to RMB 100 million to enhance shareholder value[26]. - The company repurchased a total of 2,871,000 shares at a total cost of HKD 24,637,550 during the year ended December 31, 2021[146]. - The company does not recommend the payment of any final dividend for the year ended December 31, 2021[137]. - The company plans to utilize the remaining net proceeds based on future market conditions, with expected timelines for various allocations[130].