友谊时光(06820) - 2023 - 中期业绩

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 620,342 thousand, a decrease of 24.9% compared to RMB 826,057 thousand in 2022[2] - Gross profit for the same period was RMB 412,614 thousand, down 28.0% from RMB 572,745 thousand in 2022[2] - The company reported a loss of RMB 80,944 thousand for the period, which is a 10.9% increase from a loss of RMB 72,962 thousand in 2022[2] - Adjusted loss for the period was RMB 77,911 thousand, reflecting a 33.3% increase from RMB 58,461 thousand in the previous year[2] - The group reported a total revenue of approximately RMB 620.3 million, a decrease of 24.9% compared to the same period in 2022[172] - The net loss for the period was approximately RMB 80.9 million, compared to a net loss of RMB 73.0 million in the same period of 2022[172] - Adjusted net loss for the period was approximately RMB 77.9 million, compared to an adjusted net loss of RMB 58.5 million in the same period of 2022[172] Revenue Sources - Domestic market revenue was RMB 442.5 million, accounting for 71.4% of total revenue, while overseas market revenue was RMB 177.6 million, accounting for 28.6%[69] - The group's revenue from gaming activities decreased by 24.9% year-on-year, primarily due to the natural decline in income from older products[84] Cost Management and Operational Strategy - The decline in revenue was primarily due to the normal decline in earnings from older games as they reached the end of their life cycle[4] - The company plans to enhance cost management and implement measures for personnel optimization and project management to stabilize operations[10] - The group experienced a net cash outflow from operating activities of RMB 42.997 million for the six months ended June 30, 2023, compared to RMB 30.938 million for the same period in 2022[74] Game Development and User Engagement - New game features and seasonal events were introduced to improve user experience and engagement, such as the new pet companion "Moonlight Rabbit" and elegant costumes inspired by traditional Chinese culture[6] - The company aims to strengthen the exploration of new user acquisition channels while providing precise services to retain existing users[10] - The group maintains a high frequency of updates and content optimization for its games, ensuring at least one update per month for key titles[168] - The group actively invests in R&D, focusing on AIGC technology to enhance game interaction and marketing materials, aiming to reduce costs and improve efficiency[165] Share Incentive Plan - The group granted a total of 2,152,000 restricted shares to 5 eligible employees under the share incentive plan, with a fair value of HKD 0.96 per share[82] - The share incentive plan was approved by the board on September 14, 2020, to enhance the company's competitiveness[107] - The share reward plan allows for the issuance of a total of 16,000,000 reward shares to employees, effective from January 5, 2022[153] - The share rewards granted to employees are free of charge, with a vesting period ranging from 1 month to 37 months[115] Corporate Governance and Compliance - The financial report was prepared in accordance with the Hong Kong Financial Reporting Standards and is unaudited, with a review conducted by an independent auditor[24] - The company has established an audit committee in compliance with Listing Rule 3.21 and Corporate Governance Code[139] - The board believes that the current dual role of the chairman and CEO enhances policy continuity and operational efficiency[102] Future Outlook and Strategic Focus - The company plans to increase investment in game development, publishing, and operational talent, focusing on new technologies such as AIGC to enhance global competitiveness[200] - The company aims to create a more diverse and innovative product portfolio by launching new games of different styles while ensuring the long-term operation of existing games[200] - The company aims to expand its presence in overseas markets while maintaining a leading position in the domestic female market[164] Social Responsibility and Sustainability - The company actively integrates environmental, social, and governance issues into its management framework, promoting sustainable development practices[44] - The company is committed to corporate social responsibility and has implemented policies to enhance employee awareness of environmental issues[44]