FINGERTANGO(06860)2024-03-28 13:53Financial Performance - The total revenue for the reporting period was approximately RMB 646.1 million, a decrease of about 22.4% compared to the previous year[5] - Revenue for the reporting period was approximately RMB 646.1 million, a decrease of about 22.4% compared to RMB 832.5 million in the same period last year[29] - The revenue from self-published games was approximately RMB 328.1 million, accounting for about 50.8% of total revenue[14] - The revenue from co-published games was approximately RMB 318.0 million, accounting for about 49.2% of total revenue[14] - The actual sales revenue of the Chinese gaming market reached RMB 302.96 billion, a year-on-year increase of 13.95%[3] - The mobile gaming market in China generated revenue of RMB 226.86 billion, a year-on-year increase of 17.5%[4] - The overseas revenue from self-developed games was approximately USD 16.37 billion, a year-on-year decrease of about 5.7%[4] User Metrics - The number of monthly active users (MAUs) reached 3.4 million, an increase of 32.3% year-on-year[7] - The total registered user base grew by 13.5% year-on-year, reaching 231.8 million users[7] Expenses and Profitability - Cost of revenue was approximately RMB 274.2 million, down about 9.4% or RMB 28.5 million year-on-year[15] - Gross profit was approximately RMB 371.9 million, with a gross margin decline from approximately 63.6% to 57.6% due to a smaller reduction in costs compared to revenue[16] - Sales and marketing expenses were approximately RMB 305.7 million, a decrease of about 25.2% or RMB 102.9 million year-on-year, accounting for about 47.3% of total revenue[17] - Administrative expenses were approximately RMB 51.6 million, down about 29.7% or RMB 21.9 million year-on-year, primarily due to reduced employee benefits and bad debt losses[18] - Research and development expenses were approximately RMB 70.9 million, a decrease of about 9.5% or RMB 7.5 million year-on-year[19] - Net profit for the period was approximately RMB 6.8 million, a significant improvement from a loss of RMB 139.4 million in the same period last year[24] Assets and Liabilities - Current assets as of December 31, 2023, were approximately RMB 825.1 million, including cash and cash equivalents of approximately RMB 534.5 million, a decrease of about 21.7% from RMB 682.8 million a year earlier[26] - Total assets decreased from RMB 1,056,259 thousand in 2022 to RMB 1,011,901 thousand in 2023, a decline of approximately 4.2%[30] - Non-current assets increased significantly from RMB 149,112 thousand in 2022 to RMB 186,821 thousand in 2023, an increase of about 25.4%[30] - Total liabilities decreased from RMB 278,449 thousand in 2022 to RMB 226,167 thousand in 2023, a reduction of about 18.8%[31] - Current liabilities decreased from RMB 259,369 thousand in 2022 to RMB 212,385 thousand in 2023, a decline of approximately 18.1%[31] - Trade receivables increased from RMB 67,238 thousand in 2022 to RMB 80,684 thousand in 2023, an increase of about 19.9%[30] Equity and Shareholder Information - Total equity increased slightly from RMB 777,810 thousand in 2022 to RMB 785,734 thousand in 2023, an increase of about 1.2%[30] - The company did not declare or recommend any dividends for the year ended December 31, 2023, consistent with 2022[52] - The weighted average number of ordinary shares for calculating basic and diluted loss per share remained unchanged at 1,899,956 thousand shares[53] Corporate Governance and Compliance - The board has confirmed compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[85] - The audit committee has been established in accordance with the listing rules and corporate governance code, consisting of three independent non-executive directors[89] - The company has engaged a professional firm to conduct an independent review of internal control procedures related to investment and loan processes[79] - The company is committed to improving its internal control systems based on the findings from the independent review[79] Future Plans and Investments - The company plans to continue expanding its game portfolio and strengthen procurement capabilities in 2024[10] - The company plans to fully utilize the remaining proceeds from its IPO by 2024, subject to market conditions[65] - The company has made investments in financial products totaling RMB 90 million, with expected annualized returns ranging from 2.80% to 3.50%[76] - The company has subscribed to a financial product with an investment of RMB 30,000,000, expecting an annualized return of 2.70% to 3.56% over a 90-day period[78] Employee and Operational Metrics - The total employee cost for the reporting period was approximately RMB 103.0 million, down from RMB 117.9 million in 2022, indicating a decrease of around 12.3%[69] - The number of employees decreased from 361 in 2022 to 301 in 2023, a reduction of approximately 16.6%[69] Miscellaneous - The company has no bank borrowings or other debt financing obligations as of December 31, 2023, with a debt-to-equity ratio of zero[26] - The company has no pledged assets or significant contingent liabilities as of December 31, 2023[73][74] - The company has not engaged in any significant acquisitions or disposals of subsidiaries or joint ventures during the reporting period[71] - The company will make further announcements regarding significant developments related to the recovery of outstanding amounts[83] - The annual performance announcement for the year 2023 will be published on the Hong Kong Stock Exchange website and the company's website[90] - The company expresses gratitude to all employees and business partners for their support during the reporting period, aiming for modernization and advancement in operations[92]