BOYAA(00434)2025-05-29 12:51Revenue and Profitability - Revenue for the first quarter ended March 31, 2025, was HKD 111,892,000, a decrease of 6.4% compared to HKD 119,570,000 in the same period last year[3] - Gross profit for the first quarter was HKD 77,464,000, down 8.8% from HKD 84,962,000 year-over-year[3] - The company reported a net loss attributable to shareholders of HKD 223,561,000, compared to a profit of HKD 387,592,000 in the same period last year[3] - Revenue for Q1 2025 was approximately HKD 111.9 million, a decrease of about 6.4% year-over-year, attributed to market factors and seasonal operational impacts[11] - The adjusted profit for Q1 2025, excluding non-operating factors, decreased by approximately 38.9% year-over-year due to a slight decline in revenue and reduced interest income from bank deposits[6] - The company reported a basic loss per share of HKD (33.33) compared to a profit of HKD 58.72 in the same period last year[41] - The total comprehensive loss for the period was HK$197,630,000, compared to a loss of HK$223,561,000 in the previous period, indicating an improvement of 11.6%[44] User Metrics - The number of paying users increased to 227,000, up 2.7% from 221,000 in the previous quarter[4] - Daily active users reached 1,246,000, an increase of 8.7% year-over-year[4] - Monthly active users grew to 4,389,000, reflecting a 5.5% increase compared to the same period last year[4] - The number of paying players increased by 12.9% from approximately 200,000 in Q4 2024 to approximately 230,000 in Q1 2025, while daily active users rose by 3.7% to approximately 1.25 million[8] Expenses and Costs - The company's gross profit for Q1 2025 was approximately HKD 77.5 million, down 8.8% from approximately HKD 85.0 million in the same period last year, resulting in a gross margin of 69.2%[15] - Sales and marketing expenses for the three months ended March 31, 2025, were approximately HKD 14.7 million, an increase of 82.2% compared to approximately HKD 8.1 million for the same period in 2024, primarily due to increased investment in new games[16] - Administrative expenses for the three months ended March 31, 2025, were approximately HKD 34.8 million, a year-on-year increase of 17.2% from approximately HKD 29.7 million in the same period of 2024, mainly due to higher employee compensation and benefits[17] - Research and development expenses amounted to HKD 16,039,000 for the three months ended March 31, 2025, down from HKD 18,070,000 in the previous year, representing a decrease of approximately 11.3%[67] Digital Assets and Cryptocurrency - Bitcoin growth rate was reported at 2.4%, significantly lower than the previous year's 65,324%[3] - Other sources of revenue increased by 63.3% to HKD 2,608,000, primarily from digital asset appreciation[3] - In Q1 2025, the company recorded an adjusted loss of approximately HKD 213 million, compared to an adjusted profit of approximately HKD 388 million in Q1 2024, primarily due to a decline in Bitcoin prices affecting the fair value of digital assets[6] - The fair value of digital assets as of March 31, 2025, was approximately HKD 2,334.0 million, down from HKD 2,548.6 million as of December 31, 2024, reflecting an unrealized fair value loss of approximately HKD 315.6 million[27] - The company holds approximately 3,351 Bitcoins with an average cost of $58,628 per Bitcoin as of March 31, 2025[27] - The company has authorized a total of up to $100 million for cryptocurrency purchases, with approximately $45 million allocated for Bitcoin and Ether, and up to $10 million for USDT and USDC[26] Financial Position - Total assets as of March 31, 2025, were HKD 2,949,405,000, a decrease from HKD 3,200,316,000 as of December 31, 2024[42] - Total liabilities decreased to HKD 477,463,000 from HKD 540,836,000 in the previous quarter[43] - Net current assets were HKD 2,126,353,000, down from HKD 2,421,190,000 in the previous quarter[43] - The company’s cash and cash equivalents decreased to HKD 58,439,000 from HKD 138,656,000 in the previous quarter[42] Segment Performance - The mobile gaming segment generated revenue of HKD 109,284, while the Web3 segment contributed HKD 2,608 for the three months ended March 31, 2025[57] - The company recorded a segment profit of HKD 35,899 from mobile gaming, but a significant loss of HKD 318,570 from the Web3 segment, resulting in a total segment loss of HKD 282,671[55] Shareholder Information - The company has not declared an interim dividend for the three months ended March 31, 2025, consistent with the previous year[68] - The company repurchased 3,445,000 shares at a total cost of HKD 5,636,330, with an average price of HKD 1.63 per share, all of which were subsequently cancelled[75] - The total number of stock options available for exercise as of March 31, 2024, was 4,872,429, unchanged from the previous period[78] Compliance and Reporting - The company has not yet applied new and revised International Financial Reporting Standards that have been issued but are not yet effective, and is currently assessing their potential impact[51] - The board approved the financial statements on May 29, 2025, emphasizing that the financial data is based on unaudited management accounts[89]