BOYAA(HK:00434)2022-11-24 11:59Revenue Performance - Total revenue for the nine months ended September 30, 2022, was RMB 280,934,000, representing a year-on-year increase of 0.9% compared to RMB 278,495,000 in 2021[4] - Revenue from mobile games increased by 11.7% to RMB 188,705,000, while revenue from web games decreased by 15.8% to RMB 92,229,000 for the nine months ended September 30, 2022[4] - For the three months ended September 30, 2022, total revenue was RMB 94,480,000, a decrease of 2.6% compared to RMB 97,012,000 in the same period last year[6] - For the three months ended September 30, 2022, the company reported revenue from web games of RMB 30,632 thousand, a decrease of 19.5% compared to RMB 38,057 thousand in the same period of 2021[64] - Mobile games generated revenue of RMB 63,848 thousand for the three months ended September 30, 2022, an increase of 8.5% from RMB 58,955 thousand in the same period of 2021[64] Profitability - The company reported a profit attributable to owners of RMB 45,529,000 for the nine months ended September 30, 2022, compared to a loss of RMB 5,284,000 in the same period last year[4] - The adjusted net profit for the nine months ended September 30, 2022, was approximately RMB 47.6 million, a significant improvement from an adjusted loss of approximately RMB 5.2 million in the same period of 2021[11] - Profit attributable to the owners of the company was approximately RMB 16.2 million for the three months ended September 30, 2022, representing an increase of approximately 185.5% compared to RMB 5.7 million in the same period of 2021[27] - The net profit for the three months ended September 30, 2022, was RMB 16,180 thousand, representing a remarkable increase of 185.5% from RMB 5,667 thousand in the same quarter of the previous year[158] User Engagement - The number of paying users decreased by 17.0% to 220,000, with mobile game paying users accounting for 215,000[8] - Daily active users (DAU) decreased by 9.1% to 1,230,000, while monthly active users (MAU) decreased by 11.7% to 3,676,000[8] - The number of paying users decreased by approximately 2.2% from about 0.23 million in Q2 2022 to about 0.22 million in Q3 2022, while monthly active users increased by approximately 5.3% to about 3.7 million[13] Expenses and Financial Position - Sales and marketing expenses for Q3 2022 were approximately RMB 8.1 million, an increase of about 27.8% year-over-year, primarily due to increased advertising and promotional activities[19] - Administrative expenses for Q3 2022 were approximately RMB 23.3 million, an increase of about 6.8% year-over-year, mainly due to a slight increase in employee compensation and benefits[21] - The company's gross profit for Q3 2022 was approximately RMB 62.1 million, a decrease of about 4.3% year-over-year, with a gross margin of approximately 65.7% compared to 66.9% in the same period of 2021[18] - As of September 30, 2022, the company held cash and cash equivalents of approximately RMB 213.8 million, down from RMB 248.3 million as of December 31, 2021[29] - Total liabilities amounted to RMB 338,472 thousand as of September 30, 2022, up from RMB 285,680 thousand at the end of 2021, representing a rise of 18.4%[52] Investments and Acquisitions - The company is exploring potential mergers and acquisitions to enhance its market position and expand its product portfolio[2] - The company has invested a total of RMB 300.0 million in the partnership established with Shenzhen Dongfang Boya Technology Co., Ltd. and Shanghai Tailai Tianji Asset Management Co., Ltd. as of September 30, 2022[36] - Investments measured at fair value through profit or loss amounted to approximately RMB 501.1 million as of September 30, 2022, compared to RMB 454.5 million as of December 31, 2021[33] Research and Development - The company has recognized R&D expenses of RMB 43,497,000 for the nine months ended September 30, 2022, an increase from RMB 39,834,000 in the same period last year[82] Legal and Compliance - The company has engaged legal counsel to address the implications of the frozen cash reserves due to alleged illegal activities by former employees[123] - The company plans to take appropriate legal actions regarding the court's decision to recover funds that were previously frozen[127] - The independent investigation committee has not found any significant findings that would require attention from shareholders and potential investors[130] Shareholder Information - The company did not declare any interim dividend for the nine months ended September 30, 2022, consistent with the previous year[83] - The company repurchased 300,000 shares during the nine months ended September 30, 2022, at a total cost of RMB 112,000, compared to 1,000,000 shares repurchased in the previous year at a cost of RMB 422,000[109] - The total number of RSUs outstanding increased to 23,622,089 from 9,837,089 in 2021, representing a growth of approximately 140%[119]