Financial Performance - Revenue increased by 33.8% to RMB 4,258.7 million for the six months ended June 30, 2022, compared to RMB 3,183.7 million for the same period in 2021[9] - Gross profit turned positive at RMB 537.1 million for the six months ended June 30, 2022, compared to a gross loss of RMB 12.9 million for the same period in 2021[10] - Loss before income tax decreased by 93.0% to RMB 266.8 million for the six months ended June 30, 2022, from RMB 3,807.0 million in the same period of 2021[9] - Adjusted net loss reduced by 59.3% to RMB 217.0 million for the six months ended June 30, 2022, compared to RMB 533.0 million for the same period in 2021[11] - The loss for the period decreased by 92.9% from RMB 3.8 billion for the six months ended June 30, 2021, to RMB 270.8 million for the same period in 2022[36] - The net loss attributable to equity holders for H1 2022 was RMB 270,810 thousand, a significant improvement from a net loss of RMB 3,809,147 thousand in H1 2021[95] User Metrics - Monthly active users for online music services decreased to 181.9 million as of June 30, 2022, from 184.5 million in the same period of 2021[14] - Monthly paying users for online music services increased to 37.6 million as of June 30, 2022, from 26.1 million in the same period of 2021[15] - Monthly paying users for social entertainment services increased to 1.2 million as of June 30, 2022, from 496.4 thousand in the same period of 2021[15] - Users spent an average of 80.6 minutes per day listening to music on the platform, up from 76.9 minutes in the first half of 2021[19] - 31.4% of music plays came from platform recommendations as of June 30, 2022, an increase from 30.5% a year earlier[19] Revenue Breakdown - Online music service revenue rose by 11.2% from RMB 1.604 billion to RMB 1.784 billion, driven by a significant increase in subscription sales[26] - Social entertainment services and other revenue surged by 56.7% from RMB 1.579 billion to RMB 2.475 billion, with monthly paying users increasing from 496.4 thousand to 1.2 million[26] - Total revenue increased by 33.8% year-on-year in the first half of 2022, despite challenging industry conditions[17] - Revenue recognized at a point in time was RMB 2,525,548 thousand for the six months ended June 30, 2022, compared to RMB 1,705,639 thousand in the previous year, indicating a growth of approximately 48.2%[87] - Revenue recognized over time was RMB 1,733,168 thousand for the six months ended June 30, 2022, up from RMB 1,478,035 thousand in the same period of 2021, marking an increase of about 17.3%[87] Cost and Expenses - Operating costs increased by 16.4% to RMB 3.7 billion, primarily due to rising content service costs[27] - Research and development expenses rose by 14.6% to RMB 481.5 million, attributed to higher employee-related costs and technology development expenses[31] - Total operating costs, including sales and marketing expenses, general and administrative expenses, and R&D expenses, amounted to RMB 4,607,650 thousand in H1 2022, compared to RMB 3,902,029 thousand in H1 2021, reflecting an 18.1% increase[89] - Content service costs increased to RMB 3,251,129 thousand in H1 2022 from RMB 2,759,391 thousand in H1 2021, representing a growth of 17.8%[89] Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 1.86 billion as of June 30, 2022, from RMB 476.149 million as of June 30, 2021[41] - Operating cash flow for the six months ended June 30, 2022, was RMB 782.551 million, compared to a cash outflow of RMB 748.015 million for the same period in 2021[41] - The company’s cash needs are primarily funded through cash flows from financing and investments, with a significant reliance on external financing[40] - The company plans to utilize funds raised from its global offering and other capital market financing to meet liquidity needs in the future[40] Shareholder Information - Shining Globe International Limited holds 128,364,668 shares of the company, representing 61.35% of the total issued shares as of June 30, 2022[51] - The company has a total of 209,245,601 issued shares as of June 30, 2022[52] - The company’s major shareholder, Mr. Ding Lei, holds 44.2% of the shares, amounting to 1,450,300,000 shares[47] - Alibaba Group holds 20,733,975 shares, representing 9.91% of the total shares[51] - GIC Private Limited holds 13,923,356 shares, which is 6.65% of the total shares[51] Employee and Compensation - Total employee compensation cost for the six months ended June 30, 2022, was RMB 573.7 million, up from RMB 550.3 million for the same period in 2021[42] - As of June 30, 2022, the company had 1,526 employees, an increase from 1,192 employees as of June 30, 2021[42] - The company has a stock incentive plan that allows for the issuance of up to 15,000,000 Class A ordinary shares, aimed at attracting and retaining outstanding performers[112] Corporate Governance - The company has complied with the corporate governance code and has no reported violations of the standard code during the reporting period[58] - The board believes that the dual role of the chairman and CEO enhances strategic planning and decision-making efficiency[58] Future Outlook - The company aims to convert more users to paying subscribers and enhance monetization capabilities[14] - The company aims to enhance user engagement and monetization through innovative product offerings and improved user experience[18] - The company continues to explore market expansion opportunities and new product development, although specific details were not provided in the content[134]
云音乐(09899) - 2022 - 中期财报