ZENGAME(HK:02660)2024-04-29 09:01Financial Performance - Total revenue for 2023 reached RMB 2,059,383 thousand, representing a year-on-year increase of 16.5% from RMB 1,767,456 thousand in 2022[12]. - Net profit for 2023 was RMB 725,919 thousand, up 6.7% from RMB 680,256 thousand in 2022[14]. - Adjusted net profit (excluding share-based payments) increased to RMB 742,184 thousand, a rise of 6.8% compared to RMB 694,975 thousand in 2022[14]. - The company's gross profit for 2023 was RMB 1,231,358 thousand, reflecting an 8.2% increase from RMB 1,137,984 thousand in 2022[14]. - The earnings per share for 2023 was RMB 0.72, an increase of 5.9% from RMB 0.68 in 2022[14]. - Total revenue rose from approximately RMB 1.8 billion in 2022 to about RMB 2.1 billion in 2023, reflecting a growth of around 16.5%[22]. - The company's net profit increased from approximately RMB 680.3 million in 2022 to about RMB 725.9 million in 2023, a growth of approximately 6.7%[22]. Revenue Breakdown - The company's revenue from board games increased from RMB 1,474.9 million in 2022 to RMB 1,864.4 million in 2023, a growth of approximately 26.4%[21]. - Revenue from virtual items reached approximately RMB 1.96 billion in 2023, up from about RMB 1.54 billion in 2022, marking an increase of approximately 27.3%[22]. - The revenue from in-game information services decreased by 57.1%, amounting to approximately RMB 96.9 million, down from approximately RMB 225.6 million in the previous year[28]. User Engagement - The user base for the gaming industry in China reached 668 million, with a year-on-year growth of 0.61%[16]. - Monthly active users decreased to 25,065 in 2023 from 35,967 in 2022, while daily active users fell to 4,347 from 5,810[21]. - The number of monthly paying users for virtual items dropped to 553 in 2023 from 1,015 in 2022[21]. - The ARPPU (Average Revenue Per Paying User) for virtual items increased from RMB 133 in 2022 to RMB 304 in 2023[21]. Operational Costs - Total sales costs rose to approximately RMB 828.0 million, an increase of 31.5% from approximately RMB 629.5 million in the previous year[29]. - Administrative expenses increased by 17.8% to approximately RMB 103.6 million, primarily due to higher office rental costs and administrative personnel salaries[34]. - Research and development expenses rose by 11.8% to approximately RMB 140.5 million, mainly due to an increase in the number of R&D personnel and their salaries[35]. Strategic Initiatives - The company is focused on enhancing game quality and expanding into overseas markets while adhering to compliance and operational standards[16]. - The company emphasized innovation in game development and user experience enhancement, focusing on automation and AIGC technology to improve operational efficiency[20]. - The company plans to focus on product quality improvement and content innovation in 2024, alongside enhancing talent development systems and exploring suitable investment opportunities[25]. Shareholder Information - The company declared a final dividend of HKD 0.23 per share, totaling approximately HKD 237.0 million for the fiscal year ending December 31, 2023[18]. - As of December 31, 2023, the company had distributable reserves of RMB 584 million[57]. - The company has issued a total of 62,561,080 restricted share units, representing approximately 6.07% of the total shares issued as of that date[73]. Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[161]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its affairs[190]. - The independent auditor confirmed that transactions under the Zenyou Shenzhen framework agreement were approved by the board and were conducted in accordance with the relevant provisions[155]. Compliance and Regulatory Matters - The company implemented a real-name authentication system and anti-addiction measures in its games to comply with regulatory requirements[24]. - The company has complied with the disclosure requirements of the Listing Rules regarding related party transactions[112]. - The company has received a waiver from the Stock Exchange regarding strict compliance with Listing Rules Chapter 14A for transactions under the Zenyou Shenzhen framework agreement[153]. Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[165]. - New product launches are expected to contribute an additional $20 million in revenue in the next fiscal year[166]. - The company has set a performance guidance of 20% revenue growth for the next fiscal year[169].