Financial Performance - In 2023, the company reported a revenue of RMB 6,514,585, a decrease of 26.0% compared to RMB 8,817,221 in 2022[5] - Gross profit for 2023 was RMB 4,573,318, down 28.7% from RMB 6,409,690 in the previous year[5] - The company achieved a profit before tax of RMB 413,391, representing a decline of 31.3% from RMB 601,575 in 2022[5] - The net profit for the year was RMB 273,289, a decrease of 44.5% compared to RMB 491,522 in 2022[5] - Revenue from the top five games decreased by 45.4% to RMB 3,142.7 million in 2023, accounting for 48.2% of total revenue compared to 65.2% in 2022[18] - Revenue from self-operated game products decreased by 31.0% to RMB 4,264.5 million in 2023, down from RMB 6,179.6 million in 2022[35] - Revenue from co-operated game products decreased by 32.5% to RMB 3,747.7 million in 2023, compared to RMB 5,563.8 million in 2022[34] - The company's gross profit decreased by 28.7% to RMB 4,573.3 million in 2023 from RMB 6,409.7 million in 2022[39] - The gross margin for 2023 was 70.2%, down from 72.7% in 2022, while the gross margin for self-operated game products was 92.3%[40] - Adjusted profit (non-HKFRS measure) decreased slightly from RMB 560.1 million in 2022 to RMB 542.0 million in 2023[54] Assets and Liabilities - The total non-current assets as of December 31, 2023, were RMB 3,204,232, down from RMB 4,181,409 in 2022[6] - Current assets totaled RMB 4,063,978, a decrease of 27.6% from RMB 5,617,497 in the previous year[6] - Trade receivables decreased by 27.2% from RMB 426.8 million as of December 31, 2022, to RMB 310.7 million as of December 31, 2023, consistent with declining revenues[57] - Trade payables decreased by 11.0% from RMB 523.6 million as of December 31, 2022, to RMB 466.1 million as of December 31, 2023, due to a decline in total revenue from game products[58] - Notes payable decreased by 50.2% from RMB 5,640.2 million as of December 31, 2022, to RMB 2,806.6 million as of December 31, 2023, primarily due to declining revenues[60] - Cash and cash equivalents amounted to RMB 486.9 million as of December 31, 2023, with no significant external financing plans currently in place[62] - Interest-bearing bank and other borrowings totaled RMB 213.7 million as of December 31, 2023, with interest rates ranging from 1.2% to 2.8%[63] - The company's debt-to-equity ratio was 0.45 and 0.18 as of December 31, 2022, and 2023, respectively[64] - The current ratio remained below 1 throughout the reporting period due to a significant portion of pledged deposits being classified as non-current assets[67] Business Strategy and Future Plans - The company plans to focus on deep operations, global market expansion, and the development of new IP games in 2024[9] - The launch of the "X" smart marketing platform is scheduled for 2024, aimed at enhancing advertising precision and operational efficiency[10] - The company aims to expand into Southeast Asia and Japan, in addition to continuing its efforts in the European and American markets[9] - The company plans to expand its game portfolio with new types including MMORPGs, strategy games, casual games, tower defense games, and collectible card games in 2024[18] - The company plans to enhance its technology and innovation in brand and content development while expanding into international markets, including Southeast Asia and Japan[31] User Engagement and Game Development - In 2023, the company launched 69 new games, operating over 350 games with a total of 489.3 million registered users by December 31, 2023[14] - The average monthly active users (MAU) for the company's games reached 8.7 million in 2023, while the average revenue per paying user (ARPPU) was RMB 469.2[14][22] - The average monthly paying users (MPU) decreased to 1,102.8 thousand in 2023 from 1,770.4 thousand in 2022[17] - The cumulative registered user count increased from 356.1 million in 2022 to 489.3 million in 2023[17] - The gross margin for cooperative operation games increased from 16.3% in 2022 to 24.5% in 2023[14] Expenses and Cost Management - Sales and distribution expenses decreased by 31.0% to RMB 3,880.2 million in 2023 from RMB 5,622.4 million in 2022[42] - R&D expenses increased by 8.6% from RMB 157.7 million in 2022 to RMB 171.2 million in 2023, primarily due to increased equity incentive costs related to the pre-IPO stock option plan adopted in November 2022[44] - Other expenses surged significantly from RMB 8.3 million in 2022 to RMB 208.3 million in 2023, mainly due to increased fair value losses on financial assets and goodwill impairment related to a subsidiary acquired in 2021[46] - Financing costs decreased by 12.6% from RMB 107.9 million in 2022 to RMB 94.3 million in 2023, attributed to reduced payments to business partners due to declining revenues[47] Governance and Corporate Structure - The board consists of two executive directors and three independent non-executive directors as of March 30, 2023[97] - The company has appointed three independent non-executive directors, enhancing its governance structure[96] - The board report includes a fair review of the company's business and future development prospects, as required by the Companies Ordinance[101] - The company has established a compensation committee to determine and recommend the remuneration policy for directors and senior management[184] Social Responsibility and Community Engagement - The company emphasizes its commitment to social responsibility and community development initiatives[12] - The group is committed to sustainable development and has not incurred any fines or penalties for violations of health, safety, or environmental regulations during the reporting period[108] - The group made charitable donations amounting to RMB 12.9 million for the year ended December 31, 2023[131] Shareholder Information - As of December 31, 2023, Mr. Wu Xubao holds 264,263,000 shares, representing approximately 49.45% of the total issued share capital[161] - Ms. Wu Xuan directly holds a 3.00% stake in Jiangxi Tanwan, while Shangrao Qichuang holds about 11.65%[158] - The total number of unexercised share options under the pre-IPO share option plan is 17,180,414 shares, accounting for approximately 3.2% of the total issued shares as of December 31, 2023[167] - The pre-IPO share option plan allows for the issuance of a maximum of 17,463,918 shares, which have already been issued to ESOP BVIs[167] - The exercise period for the granted share options under the pre-IPO share option plan is ten years from the date of grant[171] Legal and Regulatory Matters - The company has no major contingent liabilities or significant ongoing litigation as of December 31, 2023[72] - The company has not disclosed any related party transactions that constitute connected transactions under the listing rules[187] - The agreements are subject to registration with relevant Chinese authorities as per local laws[200]
中旭未来(09890) - 2023 - 年度财报