BOYAA(HK:00434) Zhong Guo Jing Ying Bao·2025-08-22 20:58Core Viewpoint - The company aims to transform into a pure, leading Web3 listed company while facing challenges in its core gaming business, which accounts for 97.3% of total revenue and is experiencing a decline in revenue and paying player numbers [2][3] Group 1: Company Overview - Boyaa Interactive, established in 2004, focuses on the development of card games and was listed on the Hong Kong Stock Exchange in 2013, with key products including Texas Hold'em and Dou Di Zhu [3] - In 2023, Tencent (20% stake) and Phoenix Capital (15% stake) invested in Boyaa Interactive, providing technical support and overseas channels to assist in its digital transformation [3] - As of mid-2025, Boyaa Interactive had 226 employees, with the majority (182) engaged in game development and operations [4] Group 2: Financial Performance - For the first half of 2023, Boyaa Interactive reported revenue of HKD 223 million, a year-on-year decline of 5.2%, and a net profit of approximately HKD 226 million, down 27.79% year-on-year [3] - The gross profit margin was 68.2%, compared to 71.1% in the same period last year [3] - The decline in net profit was attributed to a decrease in the fair value growth of digital assets compared to the previous year [3] Group 3: Gaming Business Challenges - The performance of key gaming products like Texas Hold'em is declining, with a 3.5% decrease in paying player numbers from Q1 to Q2 2025 [5] - Daily active users were approximately 1.23 million, down 1.0% from Q1, while monthly active users increased by 2.5% to about 4.5 million [5] - Revenue from Texas Hold'em was HKD 140 million, down 2.6% year-on-year, while other card games generated HKD 75.95 million, down 6.7% [5] Group 4: Web3 Transition - Boyaa Interactive is actively pursuing a transition to the Web3 sector, having already made investments in cryptocurrencies, including purchasing USD 5 million worth of crypto in August 2023 [7] - As of mid-2025, the company held approximately 3,353 Bitcoins at an average cost of USD 58,695 per coin and 298 Ethers at an average cost of USD 1,661 per coin, primarily for Web3 game development [7] - The company plans to use 90% of the proceeds from a new share placement, totaling up to HKD 441 million, to further develop its Web3 business, including game R&D, infrastructure, and ecosystem building [8]