G-bits(SH:603444)2024-03-28 16:00Financial Performance - The company's net profit attributable to shareholders decreased by 21.35% compared to the previous year, with adjusted net profit at 191.67 million yuan[23]. - The basic earnings per share for 2023 was 15.63 yuan, down 23.12% from 20.33 yuan in 2022[24]. - The company's total revenue for 2023 was approximately ¥4.18 billion, a decrease of 19.02% compared to ¥5.17 billion in 2022[138]. - Net profit attributable to shareholders for 2023 was approximately ¥1.13 billion, down 22.98% from ¥1.46 billion in the previous year[138]. - The net cash flow from operating activities decreased by 32.35% to approximately ¥1.19 billion, compared to ¥1.75 billion in 2022[138]. - The company reported a net profit margin of 12%, an increase from 10% in the previous quarter, showcasing improved operational efficiency[111]. - The weighted average return on equity for 2023 was 26.04%, a decrease of 6.45 percentage points from 32.49% in 2022[175]. Employee and R&D Investment - The total number of employees increased by 15.39% to 1,447, with a significant rise in R&D personnel by 163[20]. - The number of R&D personnel has increased from 530 at the end of 2021 to 855 at the end of 2023, indicating a continuous increase in R&D investment[92]. - Research and development expenses increased by 30% year-over-year, reflecting the company's commitment to innovation[111]. Product Development and Strategy - The company plans to continue iterating existing products and focus on MMORPG, idle games, and SLG genres for new product development[31]. - The company will adjust its product agency strategy based on market changes, focusing on reviving old IPs and competitive multiplayer games[31]. - The game "Abyss: Infinity Siege" is part of the company's product reserve, with uncertain launch dates and regions based on market information[39]. - The game "Wand and Sword Legend (Codename M88)" is set to launch its overseas version in the second half of 2024[42]. - The company is focusing on enhancing the "Wandao" IP and brand value to extend the product lifecycle of "Wandao Mobile" game[35]. - The company has multiple self-developed products in overseas markets undergoing testing, including "Wand and Sword Legend (Codename M88)" and "Billion Light Years" among others[76]. - The company plans to launch three new products in the next fiscal year, aiming to capture an additional 10% market share[111]. - The company plans to launch two self-developed games, "Outpost: Infinity Siege" and "Monster Never Cry," in March 2024[185]. - The game "超进化物语 2" is set to be released in December 2023, and it is a licensed strategy card game[185]. - The game "航海王：梦想指针" is scheduled for release on April 1, 2024, and is based on the licensed One Piece IP[195]. - The company is also planning to launch another game in the second half of 2024, which has already obtained its license[196]. Marketing and User Engagement - The company is exploring innovative marketing methods and user engagement activities, including live streaming and community interactions, to boost user participation[79]. - The company will continue to strengthen brand exposure while adjusting and controlling advertising expenditures to improve marketing efficiency[79]. - The cumulative registered user count for "A Thought on the Journey" has exceeded 25 million, with a focus on optimizing existing user engagement and reducing inefficient spending in future operational strategies[79]. - User retention rates improved to 85%, up from 80% in the previous quarter, indicating stronger customer loyalty[111]. - The company is focusing on enhancing its digital marketing strategies, which are expected to drive a 15% increase in user acquisition[111]. Revenue and Market Expansion - The company reported overseas revenue of ¥272 million, an increase of 5.03% year-on-year, primarily from the release of "Yinian Xiaoyao (European and American version)"[120]. - The company has successfully entered two new international markets, contributing to a 5% increase in overall revenue[111]. - The company is actively investing in quality developers and publishers in the gaming industry to enhance its market position and expand its business[86]. - Future guidance indicates expected revenue growth of 20% for the upcoming quarter, driven by new product launches and market expansion[111]. Cash Dividends and Financial Assets - The total cash dividend for 2024 is proposed to not exceed 100% of the net profit attributable to shareholders for the current period[4]. - The company completed a cash dividend of ¥504 million on September 27, 2023, representing 44.82% of the net profit attributable to shareholders for the year[126]. - The total amount of trading financial assets increased by 496.02 million RMB during the reporting period, impacting profits positively by 25.28 million RMB[60]. Government Support and Other Income - The company received government subsidies amounting to 28.07 million yuan, compared to 24.22 million yuan in 2022[27]. - The investment income from equity method investments was 9.21 million yuan, a significant drop from 74.29 million yuan in 2022[21]. - The company reported a foreign exchange gain of 31.51 million RMB due to fluctuations in the exchange rate, with 1 USD equaling 7.0827 RMB at the end of the reporting period[51].