祖龙娱乐(09990) - 2022 - 年度业绩

Financial Performance - The financial performance of the group was impacted in the short term due to the optimization and adjustment of the development and launch schedule of certain games, as well as underperformance of a product launched in the first half of the year[45]. - The year 2022 was characterized by challenges and changes, with a slow recovery of the global economy in the post-pandemic era[45]. - The company reported a revenue of RMB 584.1 million for the year ended December 31, 2022, a decrease of 36.6% compared to RMB 920.8 million in 2021[65]. - Gross profit for the same period was RMB 423.6 million, reflecting a decline of 40.6% from RMB 713.5 million in the previous year[65]. - The company incurred an operating loss of RMB 771.4 million, which is an increase of 166.6% from the operating loss of RMB 289.4 million in 2021[65]. - The adjusted net loss for the year was RMB 731.9 million, a significant increase of 207.9% from RMB 237.7 million in 2021[65]. - The company reported a net loss of RMB 768,547,000 for the year ended December 31, 2022, compared to a net loss of RMB 303,325,000 for the previous year, representing an increase in loss of approximately 153.5%[182]. - Total comprehensive loss for the year was RMB 560,183,000, compared to RMB 379,862,000 in the prior year, indicating a year-over-year increase of about 47.5%[182]. Research and Development - Research and development expenses rose by 5.8% to RMB 746.3 million, compared to RMB 705.6 million in 2021[65]. - The company aims to leverage its strong technological advantages and deepen research in game development, operation, and iteration upgrades to better meet changing market demands[45]. - The company is exploring the application of artificial intelligence in game development, enhancing gameplay experience through advanced AI tools[77]. Market Strategy and Expansion - The group is committed to international expansion and aims to steadily improve its integrated research and operation structure to enhance its competitive position in the industry[45]. - The company believes it can create greater development potential and value in the rapidly changing domestic and international markets[45]. - The company aims for global expansion, ensuring products are designed for worldwide acceptance from the incubation stage, as demonstrated by the successful overseas launch of "Shining Name"[72]. - The company has a strong presence in the Asia-Pacific market, particularly in Hong Kong, Macau, and Southeast Asia, and has made significant inroads into the Japanese and Korean markets in 2022[51]. Game Development and Launches - The company launched 19 premium mobile games as of December 31, 2022, supporting 14 languages across over 170 markets[66]. - The game "以闪亮之名" launched in July 2022 achieved top rankings in the iOS free game charts in Hong Kong, Macau, Taiwan, Singapore, and Malaysia on its first day[46]. - The company plans to launch "Avatar: Reckoning" in 2023, which combines MMORPG and shooting elements, leveraging the success of the "Avatar" franchise with over $2 billion in global box office revenue[48]. - The company is actively developing new games, including the SLG game "Three Kingdoms Heroes" and a strategy card game based on the popular IP "Dragon Tribe" (Project E)[70]. - The game "In the Name of the Shining" launched in multiple regions, achieving top rankings on iOS free game charts in Hong Kong, Macau, Taiwan, Singapore, Malaysia, and Japan on its first day[83]. - The game "Dragon Tribe Fantasy" has generated cumulative revenue exceeding RMB 4.2 billion and has over 42 million registered users as of December 31, 2022[110]. Financial Management and Position - The company has adopted a prudent financial management policy to ensure a robust financial position, considering available financial resources and operational cash needs[159]. - The company’s total assets decreased to RMB 2,953,356,000 as of December 31, 2022, down from RMB 3,518,070,000 in 2021, reflecting a decline of approximately 16.1%[184]. - Cash and cash equivalents at year-end were RMB 1,232,999,000, a decrease from RMB 1,672,338,000 at the beginning of the year, representing a reduction of about 26.3%[186]. - The company’s operating cash flow showed a net outflow of RMB 514,535,000 for the year, worsening from a net outflow of RMB 151,752,000 in the previous year[186]. - The company has implemented measures to ensure employee safety during the COVID-19 pandemic, including online meetings and remote work[118]. Employee and Compensation - As of December 31, 2022, the total number of full-time employees was approximately 1,200, with 78% in research and development[53]. - Employee compensation and benefits costs were approximately RMB 730.9 million for the year ended December 31, 2022, compared to RMB 644.8 million for the year ended December 31, 2021[143]. - Sales and marketing expenses increased by 13.5% to RMB 280.6 million, primarily due to higher employee compensation[99]. Share Repurchase and Equity - The company repurchased a total of 12,616,370 shares throughout 2022, with a total repurchase cost of RMB 61,261,899.90[176]. - The board believes that share repurchases can enhance the company's net asset value and improve return on equity, benefiting both the company and its shareholders[199]. - The company’s equity attributable to owners decreased to RMB 2,590,229,000 from RMB 3,166,385,000, marking a decline of approximately 18.1%[185].