7ROAD(HK:00797)2023-08-29 13:20Financial Performance - For the six months ended June 30, 2023, the company recorded total revenue of approximately RMB 443.7 million, an increase of about 117.0% compared to RMB 204.5 million for the same period in 2022[2] - The company's profit attributable to owners for the six months ended June 30, 2023, was approximately RMB 130.5 million, a decrease of about 45.7% compared to RMB 240.4 million for the same period in 2022[2] - The company reported a revenue of RMB 443,652,000 for the six months ended June 30, 2023, compared to RMB 204,481,000 for the same period in 2022, representing a growth of 117.5%[36] - Gross profit for the period was RMB 322,478,000, significantly higher than RMB 60,502,000 in the previous year, indicating a gross margin improvement[36] - Operating profit decreased to RMB 145,594,000 from RMB 306,033,000 year-on-year, reflecting a decline of 52.4%[36] - Net profit for the period was RMB 130,446,000, down from RMB 240,302,000 in the prior year, a decrease of 45.8%[37] Revenue Breakdown - The company's online gaming revenue for the first half of 2023 was approximately RMB 356.8 million, up 118.4% from RMB 163.4 million in the same period of 2022[5] - The mobile gaming revenue accounted for 89.0% of the total online gaming revenue, while web game revenue accounted for 11.0%[6] - The cloud business generated revenue of approximately RMB 79.4 million in the first half of 2023, a growth of 101.6% compared to RMB 39.4 million in the same period of 2022[6] - Online gaming revenue reached RMB 356,808 thousand, a significant increase from RMB 163,363 thousand in the previous year, representing a growth of 118%[44] - Self-developed games contributed RMB 280,370 thousand, up from RMB 27,709 thousand, indicating a growth of 911%[44] - Cloud computing and related services revenue increased to RMB 79,424 thousand from RMB 39,392 thousand, marking a growth of 102%[44] User Engagement - The average monthly active users for web games were approximately 650,000, while mobile games had about 1.18 million active users, reflecting the company's strong user engagement[9] - The average revenue per paying user for mobile games increased by 336.0% year-on-year to RMB 811, showcasing improved monetization strategies[9] - The company reported a total of 1 million monthly active users, reflecting a strong engagement level within its gaming portfolio[66] - The average monthly paying users during the reporting period showed a significant increase, indicating a growing user base[65] Research and Development - Research and development expenses increased to RMB 97.98 million, compared to RMB 44.78 million in the previous year, reflecting the company's commitment to game quality and innovation[11] - Research and development expenses for the six months ended June 30, 2023, amounted to approximately RMB 98.0 million, an increase of about 118.8% from RMB 44.8 million in the same period of 2022[16] - The company is focusing on research and development to enhance its gaming offerings and introduce new technologies[66] Future Plans and Strategies - The company plans to test the Portuguese version of "弹弹堂大冒险" in Q3 2023 and aims for a global release of "神曲H5" in Q4 2023[7] - The company plans to launch multiple new games in the second half of 2023, including "弹弹堂大冒险" (Portuguese version) and "神曲H5" (global release), aiming to enhance its game portfolio[8] - The company aims to explore new product development and market expansion through investment in developers and resource collaboration to attract more players and increase gaming revenue[7] - Future outlook includes plans for market expansion and potential acquisitions to strengthen its competitive position[66] - The company aims to increase its monthly active users by 20% in the next fiscal year, driven by new game releases and marketing strategies[66] - The management team remains optimistic about achieving a revenue growth target of 15% year-over-year in the next financial period[66] Financial Position - As of June 30, 2023, cash and cash equivalents were approximately RMB 117.1 million, an increase from RMB 104.7 million as of December 31, 2022[21] - Total borrowings as of June 30, 2023, were approximately RMB 253.2 million, an increase from RMB 206.9 million as of December 31, 2022, primarily due to new loans obtained[22] - The debt-to-asset ratio as of June 30, 2023, was approximately 23.2%, a decrease from 28.2% as of December 31, 2022, mainly due to a reduction in total liabilities[23] - Total assets as of June 30, 2023, were RMB 2,061,782,000, an increase from RMB 1,955,212,000 at the end of 2022[38] - Current liabilities decreased to RMB 370,916,000 from RMB 454,827,000, a reduction of 18.4%[38] - The company's net asset value increased to RMB 2,032,488,000 from RMB 1,900,847,000, reflecting a growth of 6.9%[39] Employee and Compensation - The total employee compensation for the six months ended June 30, 2023, is approximately RMB 105.5 million, including salaries, bonuses, and other benefits[30] - The group has 442 full-time employees as of June 30, 2023, with 65% in R&D, 19% in operations, and 16% in administration[31] Legal and Compliance - The group is actively seeking legal advice regarding the trust plan investment and is considering all possible measures to recover related funds[35] - The group believes that the potential loss from the trust plan investment will not have a significant adverse impact on its business operations[35] - The company has complied with all applicable provisions of the corporate governance code as of June 30, 2023[61] - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2023[62] Other Financial Metrics - The company incurred a total tax expense of RMB 2,692 thousand, compared to RMB 59,362 thousand in the previous year, a decrease of 95%[48] - The company did not declare any interim dividends for the six months ended June 30, 2023, consistent with the previous year[51] - The company reported a net loss of RMB 12,833 thousand from other income or losses, compared to a gain of RMB 330,215 thousand in the previous year[46]