YOOZOO(SZ:002174)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,767,111,827.83, a decrease of 29.79% compared to ¥2,516,786,165.63 in the same period last year[30]. - The net profit attributable to shareholders of the listed company was ¥262,897,153.61, down 46.86% from ¥494,758,040.06 in the previous year[30]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥98,777,225.48, a decline of 71.86% compared to ¥350,987,306.87 in the same period last year[30]. - The net cash flow from operating activities was ¥143,605,589.71, a decrease of 73.74% from ¥546,869,184.81 in the previous year[30]. - Basic earnings per share were ¥0.29, down 47.27% from ¥0.55 in the same period last year[30]. - Total assets at the end of the reporting period were ¥7,563,976,025.85, a decrease of 11.97% from ¥8,592,711,982.00 at the end of the previous year[30]. - The net assets attributable to shareholders of the listed company increased by 3.64% to ¥5,247,394,245.80 from ¥5,062,939,640.68 at the end of the previous year[30]. - The company's revenue for the reporting period was approximately ¥1.77 billion, a decrease of 29.79% compared to ¥2.52 billion in the same period last year[84]. - Revenue from software and information technology services was ¥1,762,895,632.32, accounting for 99.76% of total revenue, down 29.78% year-on-year[88]. - Domestic revenue decreased by 49.29% to ¥653,038,556.24, while overseas revenue decreased by 9.36% to ¥1,114,073,271.59[88]. Research and Development - Research and development investment increased significantly by 70.72% to 295 million yuan, with a commitment to invest no less than 10% of gross profit annually in next-generation technology products and innovative projects[47]. - The company increased its R&D investment by 70.72% year-on-year to 295 million yuan in the first half of the year, establishing an innovation institute to enhance technological breakthroughs and artistic exploration[66]. - The company is focusing on R&D investments to improve product quality and respond to market demands, aiming to enhance competitiveness in the gaming industry[126]. Game Development and Market Position - The company has launched over 30 games, focusing on card and SLG genres, with successful titles like "少年三国志" and "权力的游戏 凛冬将至" contributing to its market presence[42]. - The company is actively developing the "三体" IP game and has initiated the project for the card game "少年三国志 3" to expand its product matrix[44]. - The self-developed card products generated approximately 1.542 billion yuan in revenue, accounting for nearly half of the total revenue[52]. - The gaming industry in China saw a total sales revenue of 150.493 billion yuan in the first half of 2021, with a year-on-year growth of 7.89%[48]. - The company was recognized as one of the top 15 competitive listed gaming companies in China, reflecting its strengthened industry position[48]. - The game "少年三国志：零" achieved a new high in revenue shortly after its launch on April 23, 2021, with the traditional Chinese version ranking first in the iOS game download chart in Hong Kong and Taiwan on its first day[53]. - The mobile game "圣斗士星矢：觉醒" topped the sales charts in 23 countries and regions, including France and Brazil, and is set to host its first global esports competition in the second half of the year[54]. - The self-developed SLG strategy game "Infinity Kingdom" launched in January 2021 has consistently ranked in the top ten of the strategy/simulation category in over 30 countries, with steady monthly revenue growth since its release[58]. - The company plans to launch several new games, including the MMO mobile game "新盗墓笔记" and the next-generation mech fighting game "Metal Revolution," with over 3 million pre-registrations for the latter by the end of August[59]. - The self-developed game pipeline is rich and diverse, with innovative products in various stages of development, enhancing market competitiveness[59]. Financial Strategy and Operations - The company executed a focus strategy and lean growth strategy, leading to a reduction in advertising spending and a decrease in domestic mobile game revenue[91]. - Operating costs decreased by 28.58% to approximately ¥1.10 billion from ¥1.54 billion, attributed to a focus on strategic growth and reduced advertising expenditures[84]. - The company has streamlined its operations by focusing on core business areas, separating non-core businesses, and enhancing the independence of its game studios[65]. - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company has implemented new leasing standards, resulting in an increase in lease liabilities to ¥112,611,041.56[99]. Employee and Talent Management - The employee incentive program "20+X" was introduced to attract and retain talent, alongside stock option plans and employee shareholding initiatives[67]. - The company aims to create a pleasant and efficient work environment, providing various employee benefits and fostering a culture of knowledge sharing and continuous learning[68]. - The company has implemented an employee incentive program to attract and retain top talent in the competitive gaming industry[127]. Risks and Compliance - The company faced risks as outlined in the management discussion and analysis section, which investors are advised to read carefully[6]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[157]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[156]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[178]. - The company has not experienced any violations regarding external guarantees during the reporting period[170]. International Expansion - The company achieved overseas market revenue of ¥1.11 billion, accounting for 63.04% of total revenue, an increase of 14.20 percentage points year-on-year[77]. - The number of global users reached nearly 1 billion, with over 1,000 overseas partners across more than 200 countries and regions[77]. - The company is actively exploring AI integration in gaming through partnerships with companies like SenseTime, enhancing game development efficiency[71]. - The company has initiated a global strategy with localized operations, launching products tailored for markets in Japan, Korea, and Southeast Asia[78]. Charitable Activities and Community Engagement - The company engaged in charitable activities, including donations to support impoverished students and local libraries[158]. - The company has established partnerships with five polytechnic institutions in Singapore to enhance local talent development in the gaming and technology sectors[161].