Revenue and Profitability - Revenue for the six months ended June 30, 2023, was approximately RMB 354.4 million, representing a 20.2% increase from RMB 294.8 million in the same period of 2022[5]. - The company reported a net profit of RMB 39.4 million for the period, a significant increase of 93.6% compared to RMB 20.3 million in the previous year[5]. - The adjusted net profit for the period was RMB 39.6 million, reflecting a 45.0% increase from RMB 27.3 million in the same period of 2022[5]. - Profit before tax for the period was RMB 43,320 thousand, reflecting an increase of 81.5% from RMB 23,877 thousand in 2022[115]. - The company reported a profit attributable to owners of RMB 39,313,000 for the six months ended June 30, 2023, compared to RMB 20,374,000 for the same period in 2022, representing an increase of approximately 93.1%[194]. Expenses and Costs - Gross profit increased by approximately RMB 50.3 million or 33.8% to RMB 199.2 million, with a gross margin rising from approximately 50.5% to 56.2%[26]. - Research and development expenses rose by approximately RMB 12.8 million or 34.2% to RMB 50.3 million, reflecting the company's commitment to enhancing game quality and development efficiency[5]. - The cost of revenue increased by approximately RMB 9.3 million or 6.4% to RMB 155.2 million, primarily due to increased licensing fees and employee costs related to new game operations[25]. - Sales and marketing expenses rose by approximately RMB 7.0 million or 9.5% to about RMB 80.5 million for the six months ended June 30, 2023, primarily due to increased advertising activities for the newly launched game "Best Club"[29]. - General and administrative expenses increased by approximately RMB 7.9 million or 45.1% to about RMB 25.3 million for the six months ended June 30, 2023, mainly due to higher employee salaries and bonuses[30]. Financial Position - As of June 30, 2023, cash and cash equivalents amounted to approximately RMB 285.4 million, an increase of approximately RMB 52.8 million from RMB 232.6 million as of December 31, 2022[36]. - The debt-to-equity ratio as of June 30, 2023, was 0.03 times, a significant decrease from 0.66 times as of December 31, 2022[38]. - The company had no bank borrowings as of June 30, 2023, consistent with the position as of December 31, 2022[37]. - The company's net current assets increased from approximately RMB 76.1 million as of December 31, 2022, to approximately RMB 225.4 million as of June 30, 2023, resulting in a current ratio of approximately 2.72[58]. - Total assets as of June 30, 2023, amounted to RMB 491,817 thousand, a significant increase from RMB 370,260 thousand at the end of 2022[117]. Shareholder Information - As of June 30, 2023, Mr. Jia holds 31,307,986 shares, representing approximately 22.69% of the company's equity[73]. - Mr. Huang holds 21,837,345 shares, representing approximately 15.82% of the company's equity[73]. - Mr. Li holds 3,654,323 shares, representing approximately 2.65% of the company's equity[73]. - The total number of share options available for grant under the share option scheme is 13,800,000 shares, equivalent to 10% of the issued shares as of the report date[84]. Government Assistance and Grants - The company received government subsidies amounting to RMB 4.7 million during the reporting period, which did not have any unmet conditions[148]. - Government grants received during the six months ended June 30, 2023, were RMB 3,928,000, up from RMB 2,706,000 in 2022, indicating a growth of 45%[167]. Future Plans and Strategies - The company plans to accelerate the application of artificial intelligence in game development and expand into the casual gaming sector with a more diverse product portfolio[20]. - The company plans to continue expanding its mobile gaming development and operations in China, focusing on innovative technology and new product launches[140]. - The company intends to strengthen its marketing efforts, allocating 35% of the net proceeds, equivalent to HKD 3.838 million, to actively promote its games in both China and overseas markets[68]. Compliance and Governance - The audit committee has discussed and reviewed the group's unaudited interim results for the six months ended June 30, 2023[94]. - The company has established an audit committee on December 21, 2022, consisting of three independent non-executive directors[93]. - The company has adopted the Listing Rules and the Corporate Governance Code, ensuring compliance and effective management[91]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 40,059,000, compared to RMB 11,835,000 for the same period in 2022, representing an increase of 238%[158]. - The net cash used in investing activities for the six months ended June 30, 2023, was RMB 54,065,000, compared to RMB 8,854,000 in 2022, indicating a significant increase in investment outflows[158]. - The company incurred capital expenditures of RMB 79,142,000 for the six months ended June 30, 2023, significantly higher than RMB 3,920,000 for the same period in 2022, indicating a substantial increase in investment[198].
望尘科技控股(02458) - 2023 - 中期财报