网龙(00777) - 2023 - 中期业绩

Financial Performance - Game revenue for the first half of 2023 reached RMB 1.9 billion, an 8% year-on-year increase and a 16% quarter-on-quarter increase[3] - In the first half of 2023, total revenue was RMB 3.7 billion, a year-over-year decrease of 13%[8] - Revenue from the gaming business was RMB 1.9 billion, accounting for 52% of total revenue, with an 8% year-over-year increase[8] - Revenue from the education business was RMB 1.7 billion, accounting for 47% of total revenue, reflecting a 29% year-over-year decrease[8] - The operating profit for the first half of 2023 was RMB 699 million, a year-over-year decrease of 6%[8] - Net profit for the period was RMB 453 million, a decrease of 16.5% from RMB 542 million in the prior year[12] - Basic earnings per share decreased to RMB 92.61 from RMB 104.42, representing a decline of 11.3%[14] - The group reported a total profit before tax of RMB 579 million, compared to RMB 580 million in the same period last year, indicating a stable performance despite revenue decline[30] Market Performance - Domestic game business revenue grew by 9% year-on-year, significantly outperforming the market growth rate of 2%[3] - The flagship game "Magic Domain" saw a 10% year-on-year revenue increase, with a 22% quarter-on-quarter increase[3] - The company maintained its leading position in the global market outside of China, with the highest market share in key markets such as the US, Germany, and the UK[5] Education Business - Education business revenue declined by 29% year-on-year to RMB 1.7 billion, reflecting the overall market trend post-pandemic[5] - The cumulative registered users of the national primary and secondary school smart education platform exceeded 84 million, with over 25 billion page views as of June 30, 2023[6] - The company signed a merger agreement to spin off its overseas education business with a valuation of $750 million, which is expected to enhance financing options and governance structure[7] Dividends and Shareholder Returns - A special dividend of HKD 1.0 per share and an interim dividend of HKD 0.40 per share were announced for the first half of 2023[2] - The company declared an interim special dividend of HKD 1.0 per share, amounting to RMB 490 million, and an interim dividend of HKD 0.4 per share, amounting to RMB 196 million[38] - The board declared an interim special dividend of HKD 1.0 per share and an interim dividend of HKD 0.4 per share for the six months ending June 30, 2023[74] Cash Flow and Assets - Cash and cash equivalents were RMB 3,645 million, slightly down from RMB 3,701 million[15] - The company reported a net cash inflow from operating activities of RMB 457 million, down from RMB 480 million in the previous year[20] - Total assets as of June 30, 2023, increased to RMB 7,031 million from RMB 6,687 million at the end of 2022, marking a growth of 5.1%[15] Research and Development - The company plans to launch multiple new games, including MMORPGs and a new casual game, in the second half of 2023[4] - The integration of generative AI (AIGC) into game operations is expected to enhance content production efficiency and improve player experience[4] - The number of research and development employees increased to 3,068 as of June 30, 2023, from 2,960 as of December 31, 2022[50] Corporate Governance - The company has adopted a code of conduct for securities transactions that meets or exceeds the standards set by the listing rules[73] - The Audit Committee reviewed the interim financial performance for the six months ending June 30, 2023, ensuring compliance with applicable accounting standards[77] - The company has adhered to the corporate governance code throughout the review period[77] Share Repurchase - The company repurchased a total of 9,844,500 shares at a total cost of HKD 146.7 million during the period ending June 30, 2023[78] - The repurchased shares were subsequently canceled in June 2023[78] - In April 2023, the company repurchased 3,633,500 shares at a price range of HKD 14.46 to HKD 15.44, totaling HKD 54.4 million[79]