QINGCI GAMES(06633)2023-04-20 08:36Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 630.37 million, a decrease of 43% compared to RMB 1,105.82 million in 2021[11] - Gross profit for the same period was RMB 422.09 million, down 48% from RMB 812.60 million in the previous year[11] - The company reported a net profit of RMB 45.66 million, a significant recovery from a net loss of RMB 368.64 million in 2021, marking a 112% improvement[11] - The adjusted net profit for the year was RMB 46.18 million, down 89% from RMB 422.15 million in 2021[11] - The adjusted profit attributable to equity holders of the company was RMB 50.70 million, a decrease of 88% compared to RMB 423.55 million in the previous year[11] - Total revenue for 2022 reached approximately RMB 630 million, with adjusted profit for the second half of the year at RMB 126 million, reversing the loss from the first half[15] - The adjusted profit for the full year was approximately RMB 50.7 million, despite a decrease in revenue compared to the previous year[19] User Engagement and Metrics - Average Monthly Active Users (MAU) decreased by 37% to 1.60 million from 2.54 million in 2021[12] - Average Monthly Paying Users (MPU) fell by 51% to 214,000 from 440,000 in the previous year[12] - The cumulative registered players increased by 10% to 79.01 million from 71.96 million in 2021[12] - The Average Revenue Per Paying User (ARPPU) rose by 17% to RMB 262 from RMB 224 in 2021[12] - The player community, "Qingci Iron Fans," has grown to 10.6264 million members, reflecting a 0.91% increase from the previous year[22] - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[141] Game Development and Launches - The company plans to launch multiple premium games in 2023, including "New Legend of the Swordsman" and "Time Travel Agency," while continuing to expand its overseas market presence[17] - The game "Magic Card Girl Sakura: Memory Key" will be launched in collaboration with Zhong Shou You, further enriching the game portfolio[16] - The self-developed game "Magic Plan" generated approximately RMB 2.55 million in revenue within the first two months of its launch[26] - The game "Time Travel Agency" is expected to officially launch in 2023, combining elements of Rogue-like RPG, card games, and auto chess[26] - The company plans to continue expanding its game portfolio, including launching 12 mobile games across various genres by the end of 2025[24] Revenue Sources and Trends - Revenue from self-developed games fell by 29.5% to approximately RMB 557.6 million, primarily due to the maturity of "The Strongest Snail" in the Chinese market[30] - Revenue from licensed games decreased by 86.8% to approximately RMB 34.4 million, mainly due to the maturity of "Lantern and Underground City"[30] - Information service revenue dropped by 50.1% to approximately RMB 9.6 million, attributed to a decrease in ad views or clicks within games[33] - The total revenue from all games during the reporting period amounted to approximately RMB 575 million[21] Cost and Expense Management - The company's total income cost decreased by 29.0% from approximately RMB 293.2 million to RMB 208.3 million[34] - Commissions paid to distribution and payment channels decreased by 29.3% to approximately RMB 146.3 million, reflecting a decline in game operation revenue[36] - Employee benefit expenses increased by 97.2% to approximately RMB 18.1 million due to an increase in employee numbers and average salaries[36] - Sales and marketing expenses decreased by 31.2% from approximately RMB 304.2 million for the year ended December 31, 2021, to approximately RMB 209.3 million for the year ended December 31, 2022[39] - Research and development expenses increased by 24.2% from approximately RMB 91.2 million for the year ended December 31, 2021, to approximately RMB 113.3 million for the year ended December 31, 2022[40] Corporate Governance and Compliance - The company is committed to promoting a sustainable and environmentally friendly environment[65] - The company has complied with all relevant laws and regulations affecting its business operations in China during the reporting period[67] - The company manages foreign exchange risk primarily through foreign currency forward contracts[58] - The company is committed to maintaining a robust corporate governance structure with independent directors providing oversight[137] Intellectual Property and Awards - The company has established a knowledge property management system to protect its intellectual property rights, adhering to relevant laws and regulations[175] - The company has received multiple awards, including the "2022 Annual Outstanding Overseas Brand" at the Global Products and Growth Conference[181] - The company has been recognized as a "High-tech Enterprise" by the Xiamen Science and Technology Bureau and other authorities[179] Employee and Workplace Policies - The company emphasizes strict compliance with the Labor Law and Labor Contract Law of the People's Republic of China, ensuring employee rights are protected[187] - The company has established clear dismissal standards and processes to safeguard employee rights, ensuring no arbitrary dismissals occur[188] - The company is committed to creating an equal and diverse workplace, actively promoting the recruitment and development of female talent[190] ESG Initiatives - The company plans to enhance its ESG initiatives, with specific goals set for reducing carbon emissions by 20% over the next three years[148] - The board of directors has approved the ESG report, which highlights the company's commitment to sustainable practices[146] - The company has established an ESG oversight committee to manage and report on ESG matters regularly[148] Market Expansion and Future Plans - The company has set a target to expand its market presence in Southeast Asia, aiming for a 30% increase in market share by 2025[141] - New product launches are expected to contribute an additional RMB 100 million in revenue in the next fiscal year[144] - The company anticipates diversifying its revenue base by providing marketing services to third-party game developers, including Gibit Group, as it continues to develop and operate more games[105]