HOMELAND ITL(HK:03798)2023-03-30 14:17Financial Performance - For the year ended December 31, 2022, the company reported revenue from continuing operations of RMB 1,562.9 million, a 37.0% increase compared to RMB 1,140.6 million in 2021[2]. - The gross profit from continuing operations was RMB 1,020.6 million, reflecting a 21.9% increase from RMB 837.0 million in the previous year[2]. - The net profit attributable to the company's owners from continuing operations was RMB 465.3 million, a decrease of 7.1% compared to RMB 500.7 million in 2021[2]. - Sales revenue increased to RMB 1,562.9 million, up 37.0% from RMB 1,140.6 million in the previous year[12]. - Gross profit increased by 21.9% to RMB 1,020.6 million, with a gross margin decrease to 65.3% from 73.4%[14]. - Profit before tax decreased by approximately 21.2% from RMB 477.4 million for the year ended December 31, 2021, to RMB 376.0 million for the year ended December 31, 2022, with the profit margin dropping from 41.9% to 24.1%[19]. - Profit attributable to owners of the company decreased by approximately 7.1% from RMB 500.7 million for the year ended December 31, 2021, to RMB 465.3 million for the year ended December 31, 2022[22]. - Total comprehensive income for 2022 was RMB 456,812 thousand, down 8% from RMB 496,702 thousand in 2021[37]. - Basic earnings per share from continuing operations for 2022 was RMB 27.94, compared to RMB 32.74 in 2021, reflecting a decline of 14%[43]. User Metrics - Daily active users (DAUs) increased to 13,956,188, representing a 60.0% year-over-year growth from 8,720,755[4]. - Monthly active users (MAUs) rose to 62,437,541, marking a 23.7% increase from 50,492,103 in the previous year[4]. - The total number of active users reached 16,644,819, representing a year-on-year increase of 8.2%[6]. Revenue Sources - Revenue from self-developed mobile games was RMB 1,264.3 million, up 29.8% from RMB 974.2 million in 2021[3]. - Revenue from third-party mobile games surged by 363.0% to RMB 183.9 million from RMB 39.7 million[3]. - Third-party game distribution revenue amounted to RMB 183.9 million, a significant year-on-year growth of 363.0%[6]. - Advertising revenue for 2022 was RMB 1,448,199,000, an increase from RMB 1,013,910,000 in 2021, leading to total revenue of RMB 1,562,940,000 for 2022 compared to RMB 1,140,563,000 in 2021[51]. Expenses and Costs - Sales costs rose to RMB 542.3 million, reflecting a year-on-year increase of 78.7%[13]. - Sales and marketing expenses increased by approximately 80.6% from RMB 301.0 million for the year ended December 31, 2021, to RMB 543.7 million for the year ended December 31, 2022, mainly due to targeted advertising in key expansion areas such as Sichuan, Jiangsu, and Guangzhou[17]. - Administrative and other expenses rose by approximately 140.3% from RMB 91.6 million for the year ended December 31, 2021, to RMB 220.1 million for the year ended December 31, 2022, primarily due to increased employee costs related to R&D and subcontracting fees for new game development[18]. - The total employee cost for the group for the year ended December 31, 2022, was approximately RMB 224.8 million, an increase from RMB 139.1 million in 2021[35]. - The increase in employee costs was primarily due to a rise in salaries and other benefits by approximately RMB 60.2 million and an increase in share-based compensation by approximately RMB 21 million[35]. Taxation and Profitability - Income tax expenses decreased by approximately 60.0% from RMB 65.7 million for the year ended December 31, 2021, to RMB 26.3 million for the year ended December 31, 2022, with the effective tax rate dropping from 13.8% to 7.0%[21]. - The company's income tax expense for 2022 was RMB 26,326,000, significantly lower than RMB 65,672,000 in 2021[56]. - The effective corporate income tax rate for the company is 25%, but it benefits from a reduced rate of 15% due to its recognition as a "High-tech Enterprise" since 2021[55]. Strategic Initiatives - The company aims to expand from a leading local card game operator in China to a global casual competitive gaming platform[5]. - The company plans to expand its game portfolio and introduce localized board and card game variants to attract users in lower-tier cities[8]. - Increased investment in new media marketing is expected to enhance customer acquisition channels and reduce costs[9]. - Ongoing R&D investment will focus on launching new game types, including hardcore and competitive games, to enrich the game lineup[10]. - The company plans to continue expanding its mobile game development and operations in China, focusing on new product launches and market penetration strategies[46]. Investments and Assets - Non-current assets increased to RMB 495,509 thousand in 2022 from RMB 275,768 thousand in 2021, representing an increase of 80%[44]. - The company reported a significant increase in investments in associates, rising to RMB 186,545 thousand in 2022 from RMB 153,498 thousand in 2021, an increase of 21%[44]. - The company’s net asset value increased to RMB 1,794,013 thousand in 2022, up from RMB 1,440,304 thousand in 2021, reflecting a growth of 25%[45]. Corporate Governance - The company has complied with the corporate governance code, except for the separation of roles between the Chairman and CEO[82]. - The audit committee has confirmed that the financial statements comply with applicable accounting principles and have been adequately disclosed[85]. - No significant events affecting the group have occurred since the end of the reporting period[82].