7ROAD(00797)2024-08-29 11:32Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of approximately RMB 139.4 million, a decrease of about 62.0% compared to RMB 366.9 million for the same period in 2023[2]. - The company recorded a loss of approximately RMB 6.0 million for the period, a decrease of about 104.6% compared to a profit of RMB 130.4 million in the same period last year[2]. - The gross profit for the six months ended June 30, 2024, was approximately RMB 103.5 million, a decline of about 68.2% from RMB 326.0 million in the same period of 2023[14]. - The company reported a net loss of RMB 5.97 million for the period, compared to a profit of RMB 130.4 million in the same period of 2023[11]. - The company reported a total comprehensive loss of RMB 6.2 million for the six months ended June 30, 2024, compared to a comprehensive income of RMB 131.2 million in 2023[37]. - The company incurred a net loss of RMB 13,451,000 for the six months ended June 30, 2024, compared to a net loss of RMB 15,423,000 in the same period of 2023[47]. Revenue Breakdown - Mobile games accounted for 73.0% of the company's revenue, while web games contributed 27.0%[5]. - Revenue from self-developed games was RMB 77,734,000, down 72% from RMB 280,370,000 in the previous year[44]. - Revenue from cloud-related services decreased to RMB 895,000 from RMB 4,040,000 in the prior year[44]. - The average revenue per paying user for web games decreased by 7.6% to RMB 525, and for mobile games, it decreased by 34.0% to RMB 535[9]. Game Development and Launches - The company launched the mini-program game "I Am MT" in May 2024, generating over RMB 10 million in revenue in its first month and attracting over 3 million new users[5]. - The game "Gintama: Gathering" is expected to undergo a release test in the second half of 2024 after completing two tests and optimizing its gameplay[5]. - The classic IP mobile game "弹弹堂X" is projected to complete its development by the fourth quarter of 2024, with user testing planned to gauge acceptance of product innovations[7]. - The company plans to launch the overseas version of the classic IP mobile game "神曲H5" in the second half of 2024, enhancing its global development strategy[7]. - The company is actively utilizing AIGC technology in game development to improve content and enhance research and development efficiency[6]. Market Overview - The domestic gaming market's actual sales revenue for the first half of 2024 was approximately RMB 147.3 billion, reflecting a year-on-year growth of about 2.1%[4]. - The global gaming market is projected to reach USD 187.7 billion in 2024, with a year-on-year growth of 4.5% in the number of global gamers[3]. Expenses and Cost Management - Research and development expenses amounted to approximately RMB 70.7 million, a reduction of about 27.9% compared to RMB 98.0 million in the previous year[15]. - Administrative expenses were approximately RMB 21.3 million, down about 27.3% from RMB 29.3 million in the same period of 2023[16]. - Sales and marketing expenses for the six months ended June 30, 2024, amounted to RMB 38.0 million, an increase of approximately 54.4% compared to RMB 24.6 million for the same period in 2023[17]. - Total expenses for the six months ended June 30, 2024, were RMB 165,891 thousand, a decrease of 14.03% compared to RMB 192,923 thousand in 2023[48]. Cash Flow and Financial Position - As of June 30, 2024, cash and cash equivalents were approximately RMB 50.2 million, a slight increase from RMB 48.1 million as of December 31, 2023[20]. - The total borrowings as of June 30, 2024, were zero, a decrease from RMB 231.0 million as of December 31, 2023, primarily due to the sale of a subsidiary[21]. - The debt-to-asset ratio as of June 30, 2024, was approximately 6.9%, down from 22.9% as of December 31, 2023, mainly due to the sale of Shanghai Ling Su[22]. - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 44,207,000, compared to RMB 26,278,000 for the same period in 2023[65]. Employee and Corporate Governance - As of June 30, 2024, the company had 313 full-time employees, with 71% in R&D, 13% in operations, and 16% in administration[31]. - Total employee compensation for the six months ended June 30, 2024, was approximately RMB 69.1 million, including salaries, bonuses, retirement costs, and other benefits[31]. - The company has complied with all applicable provisions of the corporate governance code as of June 30, 2024[77]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2024[78]. Shareholder Information - The company did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[56]. - The interim report for the six months ended June 30, 2024, will be available for shareholders and can be accessed on the company's website in September 2024[79].