Financial Performance - For the year ended December 31, 2023, the Group recorded total revenue of RMB67.6 million, a decrease of 52.4% from RMB142.1 million for the same period in 2022[20]. - Revenue from online interactive entertainment services decreased by 51.6% to RMB66.4 million for the year ended December 31, 2023, compared to RMB137.2 million for the same period in 2022[20]. - The loss attributable to owners of the Company was RMB134.7 million, with a net loss of RMB135.1 million and an adjusted net loss of RMB132.8 million for the year ended December 31, 2023[20]. - Revenue for the year ended December 31, 2023, was RMB 67,621,000, a decrease of approximately 52.5% from RMB 142,073,000 in 2022[36]. - The net loss for 2023 was RMB (135,052,000), significantly improved from a net loss of RMB (533,440,000) in 2022[36]. - The adjusted LBITDA for the year ended December 31, 2023, was RMB120.6 million[20]. - For the year ended December 31, 2023, the Group recorded net other losses totaling RMB62.1 million, a significant decrease from RMB405.8 million in 2022, primarily due to fair value losses on various investments[122][124]. - The Group's finance income, net was RMB3.0 million for the year ended December 31, 2023, compared to finance costs of RMB7.5 million in 2022, attributed to increased interest income on cash and cash equivalents[124][126]. Operational Changes - The strategic adjustment to suspend domestic online live streaming business reflects the Company's commitment to long-term development strategy[22]. - The Group plans to adjust the proportion of its domestic and overseas live streaming business to mitigate operational risks and maintain competitiveness[29]. - The Group will continue to explore new social networking tools and investment opportunities to diversify income sources and expand into the global market[31]. - The latest live streaming platform "KiWi live" in Indonesia commenced operations in 2023, marking a key step in the Group's international expansion strategy[47]. - The total number of suspended live streaming platforms was 0 as of December 31, 2023, compared to 1,255 in the same period of 2022, indicating a complete halt in domestic operations[83]. User Metrics - Monthly active users (MAUs) as of December 31, 2023, totaled approximately 166,000, representing a decrease of about 86.8% year-over-year due to the suspension of the domestic live streaming business[57]. - The number of quarterly paying users (QPUs) for the same period was approximately 6,000, reflecting a decrease of approximately 93.1% from the previous quarter and a decrease of approximately 93.8% year-on-year, primarily due to the suspension of domestic live streaming platforms[87]. - Mobile monthly active users accounted for 100.0% of total monthly active users as of December 31, 2023, up from 92.0% and 90.4% in the previous quarters[85]. Cost Management - For the year ended December 31, 2023, the Group's selling and marketing expenses decreased by 46.5% year-on-year to RMB 34.9 million, attributed to a decline in domestic marketing fees and labor costs[68]. - Administrative expenses for the same year decreased by 38.3% year-on-year to RMB 76.8 million, mainly due to an impairment provision of RMB 27.7 million in the previous year and a strategic reduction in domestic operations[69]. - Research and development expenses decreased by 57.5% year-on-year to RMB 17.6 million, resulting from a strategic restructuring of the domestic R&D workforce and plans to utilize overseas R&D outsourcing[70]. - The Group's cost of revenue decreased by 71.2% year-on-year to RMB 8.8 million for the year ended December 31, 2023, attributed to reduced internet bandwidth and server custody fees, as well as the suspension of the domestic live streaming business[92]. Investment and Assets - The Company held venture capital and private equity funds with a total value of RMB536.4 million as of December 31, 2023, with a fair value loss of RMB42.0 million during the year[26]. - The investment return from venture capital and private equity funds reached RMB49.0 million in 2023, significantly up from RMB2.6 million in the previous year[29]. - Total assets as of December 31, 2023, were RMB 2,560,083,000, down from RMB 2,905,059,000 in 2022[36]. - Total liabilities decreased to RMB 307,099,000 in 2023 from RMB 532,958,000 in 2022[36]. Risk Management - The board is committed to annually reviewing the effectiveness of risk management and internal control systems, which are designed to manage risks rather than eliminate them[196]. - The company emphasizes the importance of risk management for investment projects, implementing various procedures to track and mitigate potential risks[199]. - The monitoring architecture for risk management is divided into three levels, covering risk identification, assessment, and management measures[199]. - The board takes overall responsibility for assessing the nature and extent of risks the company is willing to take in achieving its strategic objectives[196]. Compliance and Governance - The company has established a track record of compliance with the qualification requirements despite a lack of clear guidance[163]. - The company confirmed that there were no related party transactions that required disclosure under the listing rules during the reporting period[160]. - Shareholders of the PRC Operating Entities may have conflicts of interest, and they have undertaken not to engage in competing businesses without prior written consent[178]. - The company has not entered into any contracts that have been terminated as of the reporting date[166].
天鸽互动(01980) - 2023 - 年度财报