QINGCI GAMES(06633)2024-03-26 10:41Financial Performance - Revenue for the year ended December 31, 2023, was RMB 905.74 million, an increase of 43.7% compared to RMB 630.37 million in 2022[2] - Gross profit for the same period was RMB 557.88 million, up 32.2% from RMB 422.09 million in 2022[2] - The company reported a net loss of RMB 37.60 million, a decline of 182.4% from a profit of RMB 45.66 million in the previous year[2] - Revenue increased by 43.7% year-on-year to approximately RMB 905.7 million for the year ended December 31, 2023, compared to RMB 630.4 million for the previous year[18] - Game operation revenue rose by 47.6% year-on-year to approximately RMB 873.4 million for the year ended December 31, 2023[20] - Revenue from self-developed games decreased by 8.9% to approximately RMB 507.7 million, primarily due to a decline in income from "The Strong Snail" in the domestic and Japanese markets[20] - Revenue from licensed games surged by 963.7% to approximately RMB 365.7 million, driven by new launches such as "New Sword and Fairy: The Sword Questioning Love" and "Cardcaptor Sakura: The Key of Memories"[20] - The net loss for the year increased by 182.4% from a profit of approximately RMB 45.7 million for the year ended December 31, 2022, to a net loss of approximately RMB 37.6 million for the year ended December 31, 2023, attributed to marketing expenses for new game launches[36] - The net profit attributable to equity holders decreased by 174.3% from approximately RMB 50.3 million for the year ended December 31, 2022, to a net loss of approximately RMB 37.4 million for the year ended December 31, 2023, primarily due to marketing expenses for flagship games[37] User Metrics - Average Monthly Active Users (MAU) reached 2.48 million, representing a 55% increase from 1.60 million in 2022[4] - Average Monthly Paying Users (MPU) increased by 88% to 401,000 from 214,000 in the previous year[4] - Cumulative registered players reached 88.34 million, a 12% increase from 79.01 million in 2022[4] - Average Revenue Per Paying User (ARPPU) was RMB 302, reflecting a 15% increase from RMB 262 in the previous year[4] - The player community, known as "Qingci Iron Fans," grew to 13.3587 million members, representing a 25.71% increase year-over-year[11] Game Development and Launches - New game launches included "Magic Plan" in January 2023 and "Sakura Cardcaptor: Memory Key" in September 2023, contributing to revenue diversification[7][8] - The company plans to launch several new games in 2024, including "Blade Heart 2" and "Fat Goose Gym," which have already achieved top rankings in their respective categories[12] - The company has a pipeline of mobile games in development, including "Ares Virus 2" and "Knight Charge," expected to launch in 2024[13] - The flagship game "The Strong Snail" will continue its long-term operation while expanding into the Korean market and launching localized versions in various languages in 2024[15] - The company aims to enhance its product matrix by introducing multiple mini-program games, including self-developed titles and licensed games[16] Revenue Sources and Trends - The company’s overseas revenue increased by RMB 98.1 million, rising from 25.3% to 28.5% of total revenue[6] - Revenue from the mainland China market reached RMB 647,890 thousand, up 37.6% from RMB 470,584 thousand in 2022[64] - Game licensing revenue decreased by 30.7% year-on-year to approximately RMB 18.9 million for the year ended December 31, 2023, primarily due to a decline in revenue from "Unexpected Maze" in mainland China and "Strong Snail" in Hong Kong, Macau, and Taiwan[21] Expenses and Financial Management - Cost of revenue increased by 67.0% year-on-year to approximately RMB 347.9 million for the year ended December 31, 2023, compared to RMB 208.3 million for the previous year[23] - Sales and marketing expenses increased by 105.1% year-on-year to approximately RMB 429.2 million for the year ended December 31, 2023, primarily due to the launch of "Strong Snail" in various regions[28] - Research and development expenses decreased by 6.9% year-on-year to approximately RMB 105.5 million for the year ended December 31, 2023, mainly due to a reduction in bonuses for R&D personnel[29] - General and administrative expenses decreased by 31.8% year-on-year to approximately RMB 49.0 million for the year ended December 31, 2023, primarily due to a reduction in bonuses related to support staff[30] Cash Flow and Assets - As of December 31, 2023, the total cash and cash equivalents decreased by 46.3% to approximately RMB 538.0 million from RMB 1,001.9 million as of December 31, 2022[42] - Current assets amounted to approximately RMB 1,680.4 million, while current liabilities were approximately RMB 220.8 million, resulting in a current ratio of 761% as of December 31, 2023, down from 1,145% in 2022[43] - The group's total short-term investments increased by 101.9% to approximately RMB 988.9 million as of December 31, 2023, from RMB 489.7 million in 2022, attributed to improved cash asset returns[44] - Total assets increased to RMB 1,998,828 thousand in 2023 from RMB 1,916,402 thousand in 2022, representing a growth of approximately 4.3%[51] - Total liabilities increased to RMB 255,968 thousand in 2023 from RMB 157,502 thousand in 2022, reflecting a significant rise of about 62.5%[52] Government Support and Grants - Other income primarily includes government subsidies granted to support R&D activities and recognize contributions to local economic development[32] - Other income increased by 120.7% from approximately RMB 6.0 million for the year ended December 31, 2022, to approximately RMB 13.3 million for the year ended December 31, 2023, mainly due to increased government subsidies[33] - The company received government grants totaling RMB 13,230 thousand in 2023, compared to RMB 5,930 thousand in 2022[66] Shareholder Information and Future Plans - The company has not declared or paid any dividends for the year ending December 31, 2023, following a dividend of approximately RMB 89.32 million for the previous year[78] - The annual general meeting is scheduled for June 6, 2024, with the notice to be published in April 2024[87] - The board has decided not to recommend any final dividend for the year ending December 31, 2023, similar to the previous year[88] - The company aims to strengthen its game publishing and operation capabilities in the Chinese mobile gaming market, with a budget of RMB 138.9 million allocated for this purpose[81]