BOYAA(HK:00434)2024-05-23 04:00Financial Performance - For the first quarter ending March 31, 2024, the company reported unaudited revenue of RMB 108.5 million, a 14.0% increase compared to RMB 95.2 million in the same period of 2023[2]. - The company's gross profit for the first quarter was approximately RMB 77.1 million, representing a year-on-year increase of 21.8% from RMB 63.3 million[11]. - Adjusted net profit for the first quarter was approximately RMB 352.2 million, a significant increase of 1,093.4% compared to RMB 29.5 million in the same period last year[6]. - The gross profit margin for Q1 2024 was approximately 71.1%, compared to 66.5% in the same period of 2023[36]. - The company's net profit for the three months ended March 31, 2024, was RMB 351,791,000, compared to RMB 28,657,000 for the same period in 2023, reflecting a substantial increase[139]. - Operating profit surged to RMB 405,369,000, compared to RMB 22,985,000 in the previous year, indicating a substantial increase in operational efficiency[60]. - The company reported a pre-tax profit of RMB 413,990,000, a substantial increase of 1,130.8% year-over-year and 1,319.1% quarter-over-quarter[176]. User Engagement - The number of paying players increased by approximately 7.3% from about 206,000 in Q4 2023 to about 221,000 in Q1 2024[19]. - Daily active users rose by approximately 1.4% from about 1.13 million in Q4 2023 to about 1.15 million in Q1 2024[19]. - Monthly active users increased by approximately 5.6% from about 3.94 million in Q4 2023 to about 4.16 million in Q1 2024[19]. Revenue Breakdown - Revenue from online gaming reached RMB 107.1 million, with a notable contribution from "Texas Hold'em" generating RMB 68.3 million, up from RMB 58.9 million year-on-year[3]. - Revenue from mobile games, web games, and digital asset appreciation accounted for approximately 69.1%, 29.5%, and 1.4% of total revenue, respectively, in Q1 2024[21]. - Revenue from customer contracts for web games was RMB 32.0 million, up from RMB 29.1 million in the previous year, while mobile games revenue increased to RMB 75.0 million from RMB 66.2 million[102]. - Revenue for the three months ended March 31, 2024, is RMB 108,522, representing a 14.0% increase compared to RMB 95,229 for the same period last year[158]. Digital Assets and Investments - The digital asset appreciation generated revenue of RMB 1.4 million during the quarter, indicating the company's strategic investment in cryptocurrencies[9]. - The fair value of digital assets as of March 31, 2024, was approximately RMB 1,063.3 million, a significant increase from RMB 78.6 million as of December 31, 2023, with a recorded fair value gain of approximately RMB 352.7 million for the three months ended March 31, 2024[45]. - The company has authorized up to USD 100 million for cryptocurrency purchases to support its Web3 gaming expansion[9]. - The company plans to increase its cryptocurrency purchases and expects to continue generating digital asset appreciation income while developing and operating Web3 games[34]. Expenses and Taxation - The company's administrative expenses for Q1 2024 were approximately RMB 27.0 million, a year-on-year increase of about 15.6% from RMB 23.3 million in Q1 2023[25]. - The company's income tax expense for Q1 2024 was approximately RMB 62.2 million, significantly higher than RMB 5.0 million in the same period of 2023 due to a substantial increase in the fair value of digital assets[29]. - The effective tax rate for the company was 15% for the three months ended March 31, 2024, consistent with the previous year, due to its qualification as a "High-tech Enterprise" under Chinese tax law[99]. Cash Flow and Liquidity - Cash flow from operating activities for the three months ended March 31, 2024, was RMB 53,023 thousand, significantly higher than RMB 16,969 thousand for the same period in 2023, reflecting a growth of approximately 212.5%[77]. - The company had cash and cash equivalents of approximately RMB 702.9 million as of March 31, 2024, a slight decrease from RMB 744.3 million as of December 31, 2023, with 41.8% in RMB and 54.2% in USD[46]. - The company reported a net cash outflow from investing activities of RMB 96,598 thousand for the three months ended March 31, 2024, compared to RMB 170,159 thousand in the same period of the previous year[77]. Shareholder Information - The basic earnings per share for the period were RMB 53.30, compared to RMB 4.36 in the previous year, reflecting strong earnings growth[68]. - The total number of issued and fully paid ordinary shares as of March 31, 2024, is 709,576,301, a decrease from 709,876,301 on January 1, 2023, due to the cancellation of 300,000 shares[164]. - The weighted average number of ordinary shares for basic earnings per share was 660,019,000 for the three months ended March 31, 2024, slightly up from 657,666,000 in the same period of 2023[139]. Strategic Initiatives - The company plans to enhance its focus on developing Web3 gaming products and expand its market presence internationally[7]. - The company aims to refine its gaming product offerings and operational models, particularly in the Web3 space, to enhance user experience[7]. - The company has adopted all new and revised International Financial Reporting Standards effective from January 1, 2024, with no significant impact on its financial statements[88].