XD INC(HK:02400)2023-03-30 04:11Financial Performance - Revenue for the year ended December 31, 2022, was RMB 3,430,936 thousand, representing a 26.9% increase from RMB 2,703,173 thousand in 2021[2] - Gross profit for the same period was RMB 1,835,259 thousand, a 49.7% increase compared to RMB 1,226,243 thousand in 2021[2] - The adjusted loss for the year was RMB 494,256 thousand, a 44.5% improvement from RMB 890,345 thousand in 2021[2] - The adjusted EBITDA loss narrowed by 56.7% to RMB 353 million in 2022 compared to the previous year[5] - The net loss for the year was RMB 574.0 million, a 37.4% improvement compared to a net loss of RMB 917.3 million in the previous year[30] - The company reported an operating loss of RMB 567,870 thousand for the year ended December 31, 2022, compared to a loss of RMB 955,521 thousand in 2021, representing a 40.5% improvement[31] - Adjusted EBITDA for the year ended December 31, 2022, was a loss of RMB 353,045 thousand, significantly better than the loss of RMB 816,022 thousand in 2021, indicating a 56.7% reduction in losses[31] - The company reported a basic and diluted loss per share of RMB 1.17 for the year ended December 31, 2022, compared to RMB 1.86 in the previous year, indicating an improvement of approximately 37%[39] User Engagement - Average monthly active users (MAU) for online games decreased by 2.8% to 16,224 thousand, while average monthly paying users increased by 61.0% to 1,573 thousand[3] - TapTap's average monthly active users in China increased by 31.3% to 41,451 thousand, while the international version saw a decline of 25.4% to 9,130 thousand[3] - The average monthly active users of the TapTap China version app reached 41.5 million, a year-on-year increase of 31.3%, with game downloads totaling 801.0 million, up 38.3%[12] - TapTap's international version mobile app had an average monthly active user count of 9.1 million, a decrease of 25.4% year-on-year, influenced by specific popular games and the overseas pandemic[13] Game Development and Launches - The company plans to launch new games, including "T3 Arena" and "Torchlight: Infinite," in 2023, along with several other games in testing or launch phases[5] - In 2022, the company launched four self-developed online games, including "Flash Party," "T3 Arena," "Torchlight: Infinite," and "Unhappy Raccoon," with "Flash Party" ranking in the top three of the Apple Store's free game downloads in Japan for an extended period[8] - The company has a portfolio of 22 online games and 25 paid games as of December 31, 2022[6] - "Sausage Man" significantly contributed to revenue growth, with its active user count and payment rate reaching new highs in 2022[6] Revenue Breakdown - As of December 31, 2022, the company's game business revenue increased by 22.0% year-on-year to RMB 2,452.7 million, driven by new games and increased revenue from "Sausage Man" and "T3 Arena"[17] - The revenue from online games grew by 29.5% year-on-year to RMB 2,310.8 million, primarily due to the performance of new titles[17] - The revenue from paid games decreased by 39.4% year-on-year to RMB 123.7 million, attributed to declining income from several existing paid games[17] - The information services business revenue increased by 41.3% year-on-year to RMB 978.2 million, driven by a 31.3% increase in average monthly active users of the TapTap China app to 41.5 million[19] Expenses and Cost Management - The cost of revenue rose by 8.0% year-on-year to RMB 1,595.7 million, with the gaming segment accounting for RMB 1,338.3 million (54.6% of total costs) and the information services segment accounting for RMB 257.3 million (26.3% of total costs)[20][21] - Sales and marketing expenses rose by 18.3% year-on-year to RMB 922.7 million, primarily due to increased marketing spending for TapTap and the launch of four new online games in overseas markets[25] - Research and development expenses increased by 3.4% year-on-year to RMB 1,283.8 million, despite a reduction in the number of R&D personnel from 1,635 to 1,196[26] - General and administrative expenses decreased by 0.6% year-on-year to RMB 233.8 million, attributed to a reduction in back-office staff and lower office expenses due to rent relief policies[27] Financial Position - Cash and cash equivalents decreased to RMB 3,098,084 thousand as of December 31, 2022, from RMB 3,164,726 thousand in 2021, a decline of 2.1%[34] - The company's asset-liability ratio increased to 60.3% as of December 31, 2022, compared to 52.8% in 2021, indicating a rise in financial leverage[36] - The total assets decreased from RMB 5,044,132 thousand in 2021 to RMB 4,796,054 thousand in 2022, reflecting a decline of about 4.9%[40] - The company's equity attributable to equity holders decreased from RMB 2,304,242 thousand in 2021 to RMB 1,888,329 thousand in 2022, a reduction of approximately 18%[40] - Non-current liabilities increased from RMB 1,752,070 thousand in 2021 to RMB 2,019,899 thousand in 2022, marking an increase of about 15.3%[42] Corporate Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code for the year ended December 31, 2022, except for the separation of the roles of Chairman and CEO[84] - The audit committee has reviewed the audited consolidated financial statements for the year ended December 31, 2022, confirming compliance with applicable accounting principles and full disclosure[86] - The consolidated financial statements for the year ended December 31, 2022, have been verified by the auditor and are consistent with the figures disclosed in the announcement[87] - The company adheres to the International Financial Reporting Standards and the corporate governance code as stipulated in the listing rules[89] Stock and Shareholder Information - The company issued 26,318,000 new shares at a price of HKD 42.38 per share, raising approximately RMB 940 million in net proceeds[68] - The company did not declare or pay any dividends for the year ending December 31, 2022, consistent with the previous year[73] - The company has granted a total of 10,375,181 stock options under the stock option plan as of December 31, 2022, to incentivize eligible participants[82] - Following the reporting period, on January 11, 2023, the company granted an additional 942,550 stock options to eligible participants[83]