QINGCI GAMES(06633)2024-04-18 12:45Financial Performance - The total revenue for 2023 reached RMB 905.737 million, an increase of 43.7% compared to RMB 630.367 million in 2022[8] - Gross profit for 2023 was RMB 557.876 million, reflecting a growth of 32.2% from RMB 422.087 million in the previous year[8] - The net loss for 2023 was RMB 37.6 million, a significant decline from a profit of RMB 45.656 million in 2022, representing a change of (182.4)%[8] - Revenue increased by 43.7% year-on-year to approximately RMB 905.7 million for the year ended December 31, 2023, compared to RMB 630.4 million for the previous year[37] - Revenue from self-developed games decreased by 8.9% to approximately RMB 507.7 million, primarily due to a decline in income from "The Strong Snail" in mainland China and Japan[43] - Revenue from licensed games surged by 963.7% to approximately RMB 365.7 million, driven by the launch of "New Legend of Sword and Fairy" and "Cardcaptor Sakura: The Key to Memories" during the reporting period[43] - Game operation revenue increased by 47.6% year-on-year to approximately RMB 873.4 million for the year ended December 31, 2023[40] - Other services and sales revenue rose by 150.0% to approximately RMB 3.6 million, mainly due to growth in technical support services and marketing collaborations[42] User Metrics - The average Monthly Active Users (MAU) increased by 55% to 2.48 million in 2023, up from 1.596 million in 2022[9] - The average Monthly Paying Users (MPU) rose by 88% to 401,000 in 2023, compared to 214,000 in 2022[9] - The cumulative registered players reached 88.343 million, marking a 12% increase from 79.013 million in 2022[9] - The Average Revenue Per Paying User (ARPPU) increased by 15% to RMB 302 in 2023, up from RMB 262 in 2022[9] Game Launches and Portfolio Expansion - New games launched in 2023 include "Magic Plan" in January and "Magic Card Girl Sakura: Memory Key" in September, achieving high rankings in iOS free game charts[12] - The flagship game "The Strongest Snail" generated revenue of RMB 486 million in 2023, with total revenue since launch reaching RMB 3.259 billion[12] - The game "New Legend of Sword and Fairy" launched in June 2023, achieving RMB 288 million in revenue and ranking first in the iOS free game chart[25] - "Cardcaptor Sakura: Memory Key" generated approximately RMB 632.8 million in revenue after its launch in September 2023, topping the iOS free game charts in multiple regions[26] - The company plans to continue expanding its global presence and enhancing its game portfolio[11] - The company plans to expand its game offerings with multiple new mini-program games and enhance its game quality and matrix[18] Marketing and Expenses - Sales and marketing expenses increased by 105.1% year-on-year to approximately RMB 429.2 million, mainly due to the launch of several new games in various regions[50] - The decrease in net profit was primarily due to significant marketing expenses incurred during the launch phase of new games, which were not fully offset by the revenue generated during the reporting period[62] - The adjusted net loss for the year was primarily impacted by the concentrated marketing expenses related to the new game launches[64] Financial Position and Assets - The total cash and cash equivalents decreased by 46.3% to approximately RMB 538.0 million as of December 31, 2023, down from approximately RMB 1,001.9 million as of December 31, 2022[65] - The company's current assets were approximately RMB 1,680.4 million and current liabilities were approximately RMB 220.8 million as of December 31, 2023, resulting in a current ratio of 761%[66] - The asset-to-liability ratio as of December 31, 2023, was 13%, compared to 8% as of December 31, 2022[66] Management and Governance - The company has 643 full-time employees as of December 31, 2023, with the majority located in China[103] - The company provides competitive compensation and benefits, including monthly social insurance contributions for employees[103] - The company encourages employee training and development to enhance skills and keep up with industry trends[104] - The independent non-executive directors confirmed that transactions under the contractual arrangements were approved by the board and complied with relevant terms as of December 31, 2023[171] Risks and Compliance - The company faces various risks related to its gaming publishing business, particularly in the Chinese regulatory environment[90] - The company has complied with all relevant laws and regulations affecting its business operations in China during the reporting period[91] - The company acknowledges significant uncertainties regarding the interpretation and implementation of the Foreign Investment Law and its potential impact on the current corporate structure and operations[168] Future Plans - The company plans to fund future capital expenditures with cash generated from operations[74] - The company plans to expand its overseas market presence, with the flagship game "The Strong Snail" set to launch in South Korea and additional language versions for Southeast Asia and Europe in 2024[1] - The company has a pipeline of mobile games, including "Ares Virus 2" and "Knight Charge," expected to be released in 2024, with ongoing development and optimization[33]