G-bits(SH:603444)2023-08-15 16:00Game Performance and Engagement - The mobile game "Wandao" has maintained an average ranking of 29 on the App Store game bestseller list, peaking at 10[26]. - "Yinian Xiaoyao" has achieved nearly 2.4 million fans across platforms, with successful derivative content such as the animated series and audio novels[2]. - The game "Aobi Island: Dreamland" was launched on July 12, 2022, incorporating diverse social elements and rapid version updates[32]. - The average ranking of the game "A Thought of Immortality" on the App Store was 27, peaking at 7 during the reporting period[93]. - The company reported a peak concurrent user (PCU) count for "Wandao" approaching 1 million, highlighting its popularity and market acceptance[115]. - User retention rates have improved to 80%, reflecting successful engagement strategies and community building efforts[158]. - The revenue from the game "Wandering Mobile Game" increased due to a 7th anniversary event, leading to higher overall profits despite increased promotional and operational costs[200]. - The game "One Thought of Immortality (Mainland Version)" saw a significant decrease in game revenue in Q2 2023, resulting in reduced business profits despite lower promotional and operational costs[200]. Product Development and Innovation - The company has launched multiple derivative products for the "Wandao" IP, including novels and audio books, to enhance brand value and player engagement[1]. - The company employs a "small steps, quick runs" R&D strategy to enhance product direction and efficiency, focusing on player feedback for rapid iteration[5]. - The company is actively enhancing its IP development to improve game narratives and character depth, aiming to strengthen player emotional connection[116]. - The company is leveraging advanced technologies, such as algorithm modeling and AIGC, to enhance operational efficiency and game development processes[112]. - The company plans to launch three new games by the end of 2023, aiming to capture a larger market share in the mobile gaming sector[158]. - The company has established partnerships with five new developers to diversify its game offerings and enhance innovation[158]. Financial Performance - The company reported a total revenue of RMB 372.1 million for the first half of 2023, reflecting a year-on-year increase of 15%[37]. - Revenue for the first half of 2023 reached 1.2 billion RMB, representing a 15% increase compared to the same period last year[158]. - The company's operating revenue for the first half of the year is CNY 2,348,924,659.16, a decrease of 6.44% compared to the same period last year[164]. - The net profit attributable to shareholders is CNY 675,971,006.54, down 1.80% year-on-year[164]. - The basic earnings per share for the first half of the year is CNY 9.40, a decrease of 1.88% compared to the same period last year[189]. - The company's investment income increased by CNY 83,045,200 compared to the same period last year, mainly due to increased equity method investment income[194]. - Q2 2023 revenue reached ¥1,204,554,622.60, a 5.26% increase from Q1 2023's ¥1,144,370,036.56[200]. - Net profit attributable to shareholders for Q2 2023 was ¥369,418,231.91, up 20.54% from Q1 2023's ¥306,552,774.63[200]. Strategic Initiatives and Compliance - The company emphasizes a global, boutique, and differentiated strategy to provide healthy and engaging game content for players[8]. - The company has implemented a network security leadership group to oversee data security and ensure compliance with data protection regulations[28]. - The company is committed to enhancing its anti-addiction system for minors, aligning with various legal and regulatory guidelines[27]. - The company has implemented various energy-saving measures and raised employee awareness about environmental protection through campaigns and training[41]. - The company is committed to maintaining transparency and accuracy in its financial reporting, with all board members affirming the integrity of the half-year report[127]. - The half-year report for 2023 has not been audited, indicating a need for further validation of the financial data presented[135]. Employee and Organizational Growth - The user base has grown to over 2,000 members in the "Gibite University Game Development Alliance," covering nearly 400 universities[51]. - The company has established a robust management team focused on talent development and operational efficiency, ensuring a competitive edge in the market[122]. - The number of employees increased by 102 to 1,356, representing an 8.13% growth year-on-year[166]. - The average monthly number of employees for the first half of the year was approximately 1,317, an increase of about 26% year-on-year[166]. Market and Future Outlook - Future guidance estimates revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[158]. - The company is actively exploring potential acquisitions to enhance its technology capabilities and expand its portfolio[158]. - Market expansion efforts include targeting Southeast Asia, with plans to localize content for regional audiences[158].