2022-11-15 08:54Financial Performance - For the three months ended September 30, 2022, the revenue was RMB 1,837,127 thousand, representing a 22% increase year-over-year from RMB 1,510,163 thousand[2]. - The operating profit for the same period was RMB 331,770 thousand, up 15% from RMB 287,299 thousand in the previous year[2]. - The net loss attributable to shareholders was RMB (6,054,900) thousand, compared to a profit of RMB 565,198 thousand in the same period last year[2]. - The company reported a total comprehensive loss of RMB (5,917,573) thousand for the period, compared to a profit of RMB 703,952 thousand in the previous year[5]. - The basic and diluted earnings per share for the period were both RMB (4.44), compared to RMB 0.41 in the same period last year[4]. - The net loss attributable to equity holders of the parent for Q3 2022 was RMB 6,054.9 million, compared to a profit of RMB 565.2 million in Q3 2021[24]. - The net loss for the three months ended September 30, 2022, was RMB 5,917,573 thousand, compared to a profit of RMB 703,952 thousand in the same period of 2021, indicating a significant decline in profitability[36]. Revenue Breakdown - Revenue from office software and services accounted for 55% of total revenue, while online games and other services contributed 45%[16]. - Revenue from office software and services reached RMB 1,004.7 million, a 25% increase year-over-year and a 9% increase quarter-over-quarter, driven by growth in personal and institutional subscription services[16]. - Revenue from online games and other services was RMB 832.4 million, an 18% increase year-over-year but an 8% decrease quarter-over-quarter, primarily due to the contribution from mobile games launched in Q4 2021[16]. - Total revenue for the third quarter reached RMB 1,837.1 million, representing a year-on-year growth of 22%[29]. - Revenue from office software and services was RMB 1,004.7 million, with a year-on-year increase of 25%[29]. User Metrics - The monthly active devices for the main office software product reached 578 million, an 11% increase year-over-year from 521 million[3]. - The cumulative number of paying users increased to 28.56 million, a 31% rise compared to the previous year[3]. - The number of paid users and the proportion of long-term paid users increased, contributing to the robust growth in personal subscription services[16]. - Cumulative paying users increased to 28.56 million, reflecting a year-on-year growth of 21.88%[34]. Costs and Expenses - The cost of revenue for Q3 2022 was RMB 371.0 million, a 38% increase year-over-year and a 1% increase quarter-over-quarter[48]. - Gross profit for Q3 2022 was RMB 1,466.2 million, an 18% increase year-over-year, with a gross margin of 80%, down 2 percentage points from the previous year[48]. - R&D expenses in Q3 2022 amounted to RMB 641.7 million, a 3% increase year-over-year, reflecting investments in product improvement and cloud services[49]. - Sales and distribution expenses rose to RMB 355.6 million in Q3 2022, a 47% increase year-over-year, driven by the promotional efforts for the mobile game "Swordman World 3" during its public testing[19]. - Administrative expenses were RMB 156.1 million in Q3 2022, up 17% year-over-year, primarily due to increased employee-related costs[20]. Cash Flow and Assets - The company reported a net cash flow from operating activities of RMB 288.1 million for the three months ended September 30, 2022[11]. - The operating cash flow for the three months ended September 30, 2022, was RMB 288,104 thousand, a decrease from RMB 489,877 thousand in the same period of 2021[42]. - The company had cash and cash equivalents of RMB 12,251.4 million as of September 30, 2022, down from RMB 16,190.1 million at the end of 2021[11]. - Total non-current assets decreased from RMB 14,883.6 million as of December 31, 2021, to RMB 8,340.5 million as of September 30, 2022[10]. - Total equity decreased from RMB 28,792.2 million as of December 31, 2021, to RMB 23,790.6 million as of September 30, 2022[9]. Future Plans and Investments - The company plans to continue expanding its market presence and investing in new product development to drive future growth[2]. - The company plans to continue expanding its digital office platform penetration among government and enterprise clients[16]. - The company aims to strengthen core competitiveness and improve operational efficiency for long-term sustainable development[30]. - The company plans to maintain R&D investment to enhance cloud and collaborative office service experiences and expand into new game categories[30].