7ROAD(HK:00797)2024-04-25 10:19Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 25% year-over-year growth[2]. - The company reported a significant increase in revenue, achieving a total of RMB 500 million, representing a 25% year-over-year growth[19]. - For the year ended 31 December 2023, the total revenue amounted to approximately RMB 627.7 million, representing an increase of approximately 16.1% compared to RMB 540.6 million in 2022[25]. - The Company recorded a loss attributable to owners of the Company of approximately RMB 146.5 million in 2023, representing a decrease of approximately 151.8% compared to 2022[25]. - The gross profit margin of the Company was 61.0%, with a gross profit of RMB 383.1 million, an increase of approximately 46.7% compared to RMB 261.2 million in 2022[25]. - The Group's game business revenue was approximately RMB 471.8 million, an increase of approximately 10.7% compared to RMB 426.1 million in the previous year, primarily driven by the game "DDTank Adventure" launched at the end of 2022[85]. - Revenue from cloud computing and related services was approximately RMB 148.1 million, representing a significant increase of approximately 39.2% compared to RMB 106.4 million in 2022[85]. User Engagement and Growth - Monthly Active Users (MAUs) reached 5 million, with an average of 1 million Monthly Paying Users (MPUs) contributing to the revenue[5]. - User data showed a total of 10 million active users, which is a 15% increase compared to the previous year[19]. - The Average Revenue Per Paying User (ARPPU) was recorded at $150, indicating a strong monetization strategy[3]. - The Average Revenue Per Paying User (ARPPU) for web games was approximately RMB 587, while for mobile games it was approximately RMB 729[79]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in that region[19]. Future Plans and Product Development - The company plans to launch two new mobile games in Q3 2024, aiming to expand its market presence and user base[4]. - A new product launch is scheduled for Q3 2024, expected to contribute an additional RMB 100 million in revenue[19]. - The company is exploring potential acquisitions to enhance its technology capabilities and expand its product offerings[4]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market share[19]. - The Group aims to expand its product portfolio by exploring user needs and developing new games across different genres in 2024[41]. Marketing and Brand Strategy - The company has increased its marketing budget by 30% to support the launch of new products and enhance brand visibility[5]. - The company has initiated a new marketing strategy aimed at increasing brand awareness, with a budget allocation of RMB 20 million[19]. Research and Development - Research and development expenses increased to RMB 50 million, accounting for 10% of total revenue, reflecting the company's commitment to innovation[19]. - R&D expenses increased to approximately RMB 168.5 million, representing a rise of approximately 30.1% compared to RMB 129.5 million in the previous year, due to increased investment in R&D[89]. - The Group has adopted AIGC technology in game development to enhance content creation and improve R&D efficiency[34]. Corporate Governance and Management - The company has a diverse board with members holding significant experience in finance, investment, and corporate governance[61]. - The management team is committed to maintaining high standards of financial oversight and strategic direction[58]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[128]. - The Company has established procedures for Directors to seek independent professional advice at the Company's expense when necessary[131]. Market Trends and Challenges - The global games market size was estimated to be US$184.0 billion in 2023, with over 3.3 billion game players worldwide, reflecting a year-on-year increase of 4.3%[71]. - The mobile games market size was estimated at US$90.5 billion in 2023, accounting for 49% of total industry revenue, with a year-on-year decrease of 1.4%[71]. - The cloud computing business faced significant challenges, resulting in a substantial impairment of related assets by the end of 2023, contributing to the Group's overall loss[39]. - The Group's cloud computing business did not grow as expected due to structural market differences and intense competition from larger internet companies[38]. Shareholder Engagement - The Company emphasizes effective communication with shareholders to provide timely access to material information, ensuring shareholders can exercise their rights informedly[189]. - The Board is satisfied that the Shareholders' communication policy has been effectively implemented during the year ended December 31, 2023[191]. - All resolutions at general meetings will be voted on by poll, with results published on the Company's and Stock Exchange's websites[195].