祖龙娱乐(09990) - 2023 - 中期业绩

Financial Performance - For the six months ended June 30, 2023, the group's gross profit increased by 22.6% to RMB 297.7 million, compared to RMB 242.8 million in the same period of 2022, primarily due to the launch of "In the Name of the Shining" in various regions [12]. - Total revenue for the six months ended June 30, 2023, was RMB 402.3 million, a 22% increase from RMB 329.8 million in the same period of 2022 [44]. - The adjusted net loss for the six months ended June 30, 2023, was RMB 233.0 million, compared to a loss of RMB 308.9 million for the same period in 2022, indicating an improvement in operational performance [36]. - The company reported a net loss of RMB 233.0 million for the six months ended June 30, 2023, compared to a net loss of RMB 308.9 million for the same period in 2022, representing a 24.5% improvement [46]. - The company reported a loss attributable to owners of the company of RMB (233,023,000) for the six months ended June 30, 2023, compared to a loss of RMB (308,857,000) for the same period in 2022, indicating an improvement in performance [104]. - The company reported an operating loss of RMB 241.9 million for the six months ended June 30, 2023, compared to an operating loss of RMB 304.1 million in the same period of 2022 [36]. - The company reported a net decrease in cash and cash equivalents of RMB 519.5 million for the first half of 2023, compared to a decrease of RMB 426.2 million in the same period of 2022 [57]. - The total assets as of June 30, 2023, were RMB 2,862.6 million, a slight decrease from RMB 2,953.4 million as of December 31, 2022 [38]. Revenue Breakdown - Revenue from mainland China accounted for 59.2% of total revenue, amounting to RMB 238.3 million, while revenue from outside mainland China was RMB 164.0 million, representing 40.8% of total revenue [44]. - Revenue generated from the Chinese mainland market was RMB 238.3 million, a significant increase of 128.5% compared to RMB 104.3 million in the same period of 2022 [184]. - Revenue from regions outside of mainland China decreased by 27.3% to RMB 164.0 million, down from RMB 225.5 million in the same period of 2022 [184]. - The network game revenue from development and licensing was RMB 301,135,000, compared to RMB 192,133,000 in the previous year, reflecting a growth of 56.9% [89]. - Development and licensing revenue for the six months ended June 30, 2023, was RMB 100.8 million, accounting for 25.1% of total revenue, down from 41.8% in the same period of 2022 [183]. - Integrated game publishing and operation revenue was RMB 301.2 million, representing 74.9% of total revenue, an increase from 58.2% in the same period of 2022 [183]. User Engagement - The total number of registered users for the group's 13 games exceeded 150 million, with one game generating over RMB 4 billion in cumulative revenue and three games exceeding RMB 3 billion [5]. - The game "Dragon Tribe Fantasy" achieved cumulative revenue of over RMB 4.3 billion and registered users exceeding 43 million as of June 30, 2023 [22]. - Cumulative revenue for the game "Hongtu Zhi Xia" exceeded RMB 1.5 billion, with total registered users surpassing 7 million as of June 30, 2023 [193]. Expenses and Cost Management - The group's sales and marketing expenses rose by 40.0% to RMB 164.4 million, up from RMB 117.4 million in the same period of 2022, mainly due to increased promotional and advertising expenditures [13]. - R&D expenses for the six months ended June 30, 2023, decreased by 18.5% to RMB 299.2 million from RMB 367.1 million in the same period of 2022, primarily due to cost control in employee benefits and outsourced technical services [29]. - Employee benefit expenses decreased to RMB 303,213 thousand for the six months ended June 30, 2023, from RMB 370,942 thousand in the same period of 2022 [118]. - The total capital expenditure for the six months ended June 30, 2023, was RMB 2.3 million, a decrease of 80.0% from RMB 11.5 million in the same period of 2022 [134]. Strategic Initiatives - The company is focused on global expansion, with successful collaborations on top IP products, including the mobile game "Avatar: Return to Pandora" [4]. - The company is focused on enhancing its product offerings and market expansion strategies, particularly in the mobile gaming sector [42]. - The company plans to continue evaluating its corporate governance structure to assess the need for separating the roles of Chairman and CEO [31]. - The company plans to release several new games in the second half of 2023, including "Avatar: Return to Pandora" and "Three Kingdoms: Honghu Baye," both currently in testing phases [179]. - The company is actively developing a PC version of "In the Name of the Shining," expected to launch in September 2023 in mainland China [177]. - The company is focusing on market expansion in regions such as mainland China, Europe, and Southeast Asia, which contributed to revenue growth [158]. Financial Management - The company maintains a prudent financial management policy to ensure sufficient operating funds to meet current business needs [15]. - Cash used in operating activities was RMB 160.6 million for the first half of 2023, an improvement from RMB 241.6 million in the prior year [57]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance by all directors for the six months ended June 30, 2023 [32]. - The company has adopted new accounting standards effective January 1, 2023, which did not have a significant impact on its interim financial information [86]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2023 [75]. - The company reported no dividends declared or paid for the six months ended June 30, 2023, and 2022 [160]. - The company repurchased a total of 659,000 shares at a total cost of HKD 3,744,880 during the six months ended June 30, 2023 [49]. Foreign Exchange and Liabilities - The group has not incurred any significant foreign exchange losses during the six months ended June 30, 2023, and continues to monitor foreign exchange risk exposure [108]. - The group has incurred a foreign exchange loss of RMB 18,071 thousand for the six months ended June 30, 2023, compared to a foreign exchange gain of RMB 942 thousand in the same period of 2022 [117]. - The company’s total liabilities as of June 30, 2023, amounted to RMB 421.3 million, compared to RMB 363.1 million in the previous year [56]. - The group’s total liabilities as of June 30, 2023, were RMB 208,286 thousand, an increase from RMB 133,858 thousand as of December 31, 2022 [126].