INFINITIES TECH(HK:01961)2023-03-28 14:54Financial Performance - The company reported a basic loss attributable to ordinary equity holders of RMB 84,445,000 for the year ended December 31, 2022, compared to RMB 85,056,000 for the previous year[7]. - The group reported a pre-tax loss of RMB 86,000,000 for 2022, slightly improved from a loss of RMB 86,822,000 in 2021[27]. - The company reported a net loss of approximately RMB 86.0 million for the fiscal year 2022, a slight improvement from a net loss of RMB 86.8 million in fiscal year 2021[61]. - The basic and diluted loss per share attributable to ordinary shareholders for the year ended December 31, 2022, was RMB (15.5) cents, compared to RMB (15.6) cents in 2021, showing a slight improvement[110]. - Total equity as of December 31, 2022, was RMB 54,347,000, down from RMB 138,513,000 in 2021, reflecting a significant decrease of approximately 60.8%[116]. Revenue and Sales - The group's revenue for the year 2022 was RMB 103,910,000, a decrease of 9.3% compared to RMB 114,914,000 in 2021[27]. - Revenue for the fiscal year 2022 decreased to approximately RMB 103.9 million, a decline of RMB 11.0 million or 9.6% from RMB 114.9 million in fiscal year 2021[35]. - Revenue from mobile gaming dropped by approximately RMB 44.3 million or 43.0% to about RMB 58.7 million in fiscal year 2022[47]. - Revenue from digital media content increased by approximately RMB 8.1 million or 68.0% to about RMB 20.0 million in fiscal year 2022[48]. - Total revenue from customer contracts was RMB 103,910,000, representing a decrease from RMB 114,914,000 in the previous fiscal year[71]. Expenses and Costs - The group's cost of sales for 2022 was RMB 87,865,000, down from RMB 100,523,000 in 2021, reflecting a reduction of 12.6%[18]. - Selling and distribution expenses decreased by approximately RMB 13.9 million or 68.2% to about RMB 6.5 million for the fiscal year ending December 31, 2022[75]. - Administrative expenses increased by approximately RMB 1.4 million or 6.5% to about RMB 23.6 million for the fiscal year ending December 31, 2022[76]. - Research and development expenses increased by approximately RMB 0.1 million or 0.4% to approximately RMB 37.5 million for the year ended December 31, 2022, primarily due to continued investment in mobile game development[97]. Trade Receivables - Trade receivables as of December 31, 2022, amounted to RMB 65,651,000, an increase from RMB 60,351,000 as of December 31, 2021[9]. - The net impairment of trade receivables increased to RMB 20,388,000 in 2022 from RMB 14,948,000 in 2021, representing a rise of 36.5%[18]. - Trade receivables aged over 365 days amounted to RMB 15,422,000 in 2022, a decrease of 48.9% from RMB 30,301,000 in 2021[24]. - The company aims to strictly control outstanding receivables to minimize credit risk, with overdue balances reviewed regularly by senior management[9]. Government Support and Subsidies - The company received government subsidies totaling RMB 2.4 million for the year ended December 31, 2021, related to COVID-19 support measures[16]. - Interest income for the year was RMB 373,000, while government subsidies amounted to RMB 304,000, a decrease from RMB 2,444,000 in the previous year[134]. Business Strategy and Development - The group has expanded its business segments to include game product supply for partners, aiming to enhance business scale[29]. - The group is focusing on deepening mobile game development and stable expansion of digital media marketing[29]. - The company plans to accelerate the launch of multiple co-developed mobile games and actively expand into overseas advertising markets in 2023[40]. - The company aims to establish a more comprehensive supply system for game products and enhance profitability by expanding partnerships with suppliers[41]. - The company plans to accelerate the development of overseas markets and strengthen strategic partnerships to enhance business growth[60]. Compliance and Governance - The company has maintained compliance with all applicable corporate governance codes during the fiscal year 2022[13]. - The group has consolidated financial statements prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[142]. Employee and Operational Metrics - The total number of employees as of December 31, 2022, was 89, with total employee costs approximately RMB 14.9 million for the year ended December 31, 2022[106]. - The company's management team and board expressed gratitude for the continuous support from shareholders, employees, and business partners[3]. Market Conditions and Challenges - The company faces challenges in the mobile gaming market, including reliance on distribution channels and potential delays in payments from settlement agents[88]. - The average monthly paying users decreased from approximately 29,300 in fiscal year 2021 to about 23,600 in fiscal year 2022, primarily due to the economic downturn caused by the pandemic[44]. - The group anticipates significant economic recovery in China, driven by the development of the digital economy over the next decade[31].