YOOZOO(SZ:002174)2022-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,023,753,826.62, a decrease of 42.07% compared to ¥1,767,111,827.83 in the same period last year[29]. - The net profit attributable to shareholders of the listed company was ¥70,941,303.60, down 73.02% from ¥262,897,153.61 year-on-year[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥46,166,043.78, a decline of 53.26% compared to ¥98,777,225.48 in the previous year[29]. - The basic earnings per share decreased by 72.41% to ¥0.08 from ¥0.29 in the same period last year[29]. - The total assets at the end of the reporting period were ¥6,686,009,957.84, a decrease of 3.69% from ¥6,942,200,131.70 at the end of the previous year[29]. - The net assets attributable to shareholders of the listed company increased by 0.29% to ¥5,150,576,777.13 from ¥5,135,797,099.96 at the end of the previous year[29]. - The net cash flow from operating activities was ¥141,019,724.38, a slight decrease of 1.80% compared to ¥143,605,589.71 in the same period last year[29]. - The weighted average return on net assets was 1.38%, down 3.72% from 5.10% in the previous year[29]. - The company's revenue for the reporting period was ¥1,023,753,826.62, a decrease of 42.07% compared to ¥1,767,111,827.83 in the same period last year[101]. - The company's net profit attributable to shareholders was 70.94 million yuan, down 73.02% compared to the same period last year[70]. - The company's gross profit margin was 47.72%, an increase of 10 percentage points compared to the same period last year[70]. - The overseas revenue accounted for 60.10% of total revenue, down 44.77% from the previous year[105]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company aims to enhance its global presence and operational efficiency through a mature global distribution system and refined operations[47]. - The company plans to launch several new self-developed games, including "Codename J," "Codename IW," and "Codename G," as well as the licensed IP game "New Tomb Raider" in the second half of 2022[47]. - The company has established a "Global Publishing Division" to enhance its publishing capabilities and break regional boundaries, improving efficiency and quality[94]. - The company aims to invest no less than 10% of gross profit annually in next-generation technology products and innovative projects[93]. - The company has implemented a "global card+" strategy, aiming to become a globally influential first-tier game manufacturer[90]. - The company will expand its campus recruitment scale to attract outstanding graduates, fulfilling its social responsibility[48]. Market and Industry Insights - The gaming industry in China is rapidly developing, driven by digital economy growth and technological advancements, with the company actively promoting a healthy gaming environment[49]. - The actual sales revenue of China's game market in the first half of 2022 was 147.789 billion yuan, a year-on-year decline of 1.8%[54]. - The actual sales revenue of China's mobile game market was 110.475 billion yuan, down 3.74% year-on-year[54]. - The number of game users in China was approximately 660 million, a slight decrease of 0.13% year-on-year[56]. - The company's overseas market revenue reached 615 million yuan, accounting for 60.1% of total revenue, marking the seventh consecutive year it exceeded domestic market revenue[68]. Research and Development - Research and development expenses amounted to ¥236,975,658.63, representing 23.15% of total revenue, down 19.72% from ¥295,204,524.90[101][100]. - The company increased its R&D investment, with development expenditures rising to 295,991,950.85 CNY, up 2.08% from the previous year[118]. - The company has a total workforce of 1,600, with 1,113 technical personnel, accounting for 70% of the total[43]. User Engagement and Game Development - The company aims to enhance user engagement and extend product lifecycle through its "global card+" strategy[71]. - The game "少年三国志" has undergone 4 major updates during the reporting period, enhancing gameplay and player engagement, including a collaboration with the popular IP "我不是胖虎" for its 7th anniversary[73]. - "少年西游记" has launched 5 major updates since its release in 2016, introducing new PVP and PVE gameplay elements, and integrating traditional culture with a series of events[74]. - "少年三国志 2" has received multiple accolades, including the "2020 Player's Favorite Mobile Game" and "2021 Top Ten Overseas Cultural Export Games," with 6 major updates released during the reporting period[75]. - "Infinity Kingdom" has been recognized as the "2021 Best Overseas Game" and has launched in multiple regions, achieving top rankings on Google Play and iOS[79]. - "Game of Thrones Winter is Coming" has been recommended 6 times on Facebook and celebrated its 3rd anniversary with a month-long series of events, enhancing player engagement[81]. - "新盗墓笔记" has had 6 version updates, expanding gameplay and introducing new features, including a new season system for PVP gameplay[82]. - "Saint Seiya Awakening" has maintained weekly updates and hosted multiple global tournaments, attracting over 10 million views, enhancing player interaction and engagement[83]. - The company emphasizes the importance of cultural integration in its games, as seen in collaborations with traditional cultural elements in "少年三国志" and "少年西游记"[73][74]. Risk Management - The company has not identified any significant risk factors that could severely impact its operational and financial status[5]. - The company faces risks from intensified industry competition and currency exchange fluctuations, particularly with significant overseas market revenue[160]. - The company has implemented measures to manage gaming time and spending to prevent addiction among minors[49]. - The company has implemented strict consumption limits for underage players and established a parental monitoring platform[57]. Legal and Compliance - The company has not faced any significant legal disputes or non-compliance issues during the reporting period[190][196]. - The company is involved in litigation with a total amount of 12,380.92 thousand yuan pending in court[197]. - The company is also facing a case with a claim amount of 1,196.19 thousand yuan, which is currently awaiting trial[197]. - There is an ongoing execution case with a claim amount of 6,253.58 thousand yuan, with some amounts yet to be executed[197]. - The company has paid 1,744.6 thousand yuan in a concluded case, which was resolved through arbitration[200]. Shareholder and Stock Options - The company will not distribute cash dividends or issue new shares from capital reserves for the half-year period[165]. - The company granted 16.79 million stock options to 145 incentive recipients at an exercise price of 9.11 CNY per option[170]. - The second employee stock ownership plan involved 21 employees holding a total of 9,446,693 shares, representing 1.03% of the company's total equity[175]. - The third employee stock ownership plan included 22 employees holding 15,441,400 shares, accounting for 1.69% of the company's total equity[175]. - The first employee stock ownership plan had 10,696,090 shares remaining, which is 1.17% of the company's total equity[175]. - The company’s total stock options granted in 2022 amounted to 16.79 million, aimed at middle management and core personnel[170]. Financial Management - The company reported a significant increase in financial expenses by 6,389.85% due to foreign exchange losses from the depreciation of the RMB against the USD[101]. - The company reduced advertising expenses by 51.36%, focusing on precision and ROI in its marketing strategy[101]. - The company reported a government subsidy and VAT refund contributing 16,558,848.21 CNY, which is 20.75% of other income[114]. - The company has a total of CNY 621,205,548.55 in unutilized raised funds, including bank interest and investment income[146]. - The company has allocated CNY 100,000,000 for a one-year fixed deposit at an interest rate of 2.3%[146]. - The company has invested CNY 37,000,000 in seven-day notice deposits at an interest rate of 2.025%[146].