Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2023, representing a 25% increase year-over-year[10]. - The company reported revenue of RMB 3,400.1 million for the six months ended June 30, 2023, a decrease of 25.0% compared to RMB 4,535.7 million for the same period in 2022[23]. - Revenue for the six months ended June 30, 2023, was RMB 3,400,091 thousand, a decrease of 25% compared to RMB 4,535,674 thousand in the same period of 2022[96]. - Revenue from self-operated game marketing and operations was RMB 2,118,937, down 35% from RMB 3,261,892 in the previous year[121]. - The company reported a net profit margin of 15%, which is an improvement from 12% in the previous year[10]. - Net profit decreased by 11.1% from RMB 337.7 million to RMB 300.3 million for the six months ended June 30, 2023[40]. - The adjusted profit for the period was RMB 433.1 million, compared to RMB 345.1 million in the previous year, reflecting a growth of 25.5%[1]. - Total comprehensive income for the period was RMB 320,959 thousand, slightly lower than RMB 337,673 thousand in 2022[99]. - The company reported a profit of RMB 275,654,000 for the six months ended June 30, 2023, compared to RMB 338,199,000 for the same period in 2022, reflecting a decrease of approximately 18.5%[105]. - The total tax expense for the period was RMB 142,393, significantly higher than RMB 61,120 in the same period last year, reflecting an increase in estimated taxable profits in mainland China[128]. User Metrics - Monthly Active Users (MAU) reached 10 million, showing a growth of 15% compared to the previous period[10]. - The average monthly active users (MAU) decreased to 8.7 million from 9.4 million, a decline of 7.2%[19]. - Cumulative registered users reached 432.9 million, up from 356.1 million in the previous year, representing a growth of 21.5%[19]. Game Development and Launches - The company plans to launch two new games by the end of 2023, aiming to capture a larger market share[10]. - The company launched 35 new games during the reporting period, increasing the total number of operated games to over 330[16]. - As of June 30, 2023, the company had 73 games in its pipeline for future marketing and operational efforts[21]. Revenue Sources and Diversification - Revenue from other marketing services increased significantly by 135.9% to RMB 49.3 million compared to RMB 20.9 million in the previous year[17]. - The company aims to diversify its revenue sources through new consumer brands, including "Zhazhahui" and "Bro Kooli," and plans to enhance digital marketing and AI-driven strategies[22]. - Revenue from consumer products increased by 89.9% from RMB 66.8 million to RMB 126.8 million, driven by continuous efforts to promote and strengthen the consumer goods business[27]. Financial Stability and Assets - The company's total equity as of June 30, 2023, was RMB 2,133,749,000, an increase from RMB 1,709,036,000 at the end of 2022, representing a growth of approximately 25%[105]. - Total liabilities as of June 30, 2023, were RMB 7,143,940 thousand, down from RMB 7,889,966 thousand, reflecting improved financial stability[101]. - The company recognized a fair value reserve of RMB 20,698,000 from investments during the period, contributing to the overall equity[105]. - The company reported a significant increase in other income and gains, rising to RMB 386,310 thousand from RMB 202,624 thousand, indicating diversification in revenue streams[96]. Expenses and Cost Management - Selling and distribution expenses decreased by 34.9% from RMB 3,000.6 million to RMB 1,953.2 million, mainly due to reduced marketing and promotional expenses as several game products entered the later stages of their life cycle[31]. - Administrative expenses increased by 101.9% from RMB 63.2 million to RMB 127.6 million, primarily due to new share-based compensation and increased listing expenses[32]. - Research and development costs increased by 22.8% from RMB 70.6 million to RMB 86.7 million, mainly due to new share-based compensation[34]. Cash Flow and Financing - Cash flow from operating activities showed a net outflow of RMB 408,833,000 for the first half of 2023, a significant decrease compared to an inflow of RMB 1,442,892,000 in the same period of 2022[107]. - The company incurred a net cash outflow from financing activities of RMB 386,983,000 for the six months ended June 30, 2023, compared to a net inflow of RMB 539,437,000 in the same period of 2022[108]. - The company reported a net cash flow from investment activities of RMB 1,009,393,000 for the six months ended June 30, 2023, compared to a net cash outflow of RMB 2,383,986,000 in the same period of 2022, indicating a significant improvement[108]. Shareholder Information and Dividends - No interim dividend was recommended for the six months ending June 30, 2023[88]. - A special dividend of RMB 50,000,000 was declared on August 15, 2023, to be paid in cash from internal resources[89]. - The company has not declared or paid any dividends for the six months ended June 30, 2023, consistent with the previous year[129]. Strategic Plans and Future Outlook - The company is exploring potential acquisitions to expand its market presence in Southeast Asia[10]. - The company plans to allocate approximately 28.0% of the proceeds to strengthen relationships with mainstream media platforms to enhance brand awareness and user coverage[71]. - Approximately 10.0% of resources will be allocated over the next four years to support international market expansion and overseas business development, including 4.5% for expanding market share in online gaming and consumer goods[77]. - The company plans to explore potential strategic acquisition opportunities, allocating about 10.0% of resources for this purpose over the next four years[77]. Employee and Management Information - The company has 1,218 full-time employees, with 33.1% in sales and marketing, 29.5% in operations, 25.8% in R&D, and 11.7% in general administration[76]. - The total remuneration for key management personnel for the six months ended June 30, 2023, was RMB 25,865,000, significantly up from RMB 907,000 for the same period in 2022[153]. - The company maintains a competitive compensation package and collaborative work environment to attract and retain qualified employees[79].
中旭未来(09890) - 2023 - 中期财报