Boyaa Interactive Announces 2016 Annual Results， Adjusted Net Profit Increased by 46.5%
|Financial Highlights||For the year ended 31 December 2016（RMB’000）|
|Profit Attributable to owners of the Company||211,271|
|Non-IFRS adjusted net profit||232,817|
[28 March 2017 - Hong Kong] Boyaa Interactive International Limited (“Boyaa Interactive” or the “Company”, stock code: 0434), a leading online card and board game developer and operator in China, is pleased to announce the audited consolidated results of the Company and its subsidiaries for the year ended 31 December 2016 (the “Reporting Period”) (the “Annual Results”).
The Group’s gross profit increased by approximately 10.2% from approximately RMB427.9 million for the year ended 31 December 2015 to approximately RMB471.7 million for the year ended 31 December 2016. As Boyaa Interactive successfully launched the cost control policy and optimized the payment channels in 2016, the Group’s unaudited non-IFRS adjusted net profit of the Company recorded a year-on-year increase of approximately 46.5% in 2016 after deducting the one-off non-operational items such as the gain of approximately RMB212.9 million from the disposal of equity interests in RaySns Technology Co., Ltd. in the fourth quarter of 2015 and impairment of approximately RMB68.5 million of equity interests of Dalian Zeus Entertainment Group Co., Ltd. (“Zeus Entertainment”) in the fourth quarter of 2016.
For the year ended 31 December 2016, revenue of company amounted to approximately RMB745.2 million, and profit attributable to owners of the Company amounted to approximately RMB211.3 million, and the unaudited non-IFRS adjusted net profit of the Company derived by excluding share-based compensation expenses amounted to approximately RMB232.8 million.
For the three months ended 31 December 2016, revenue of the Company amounted to approximately RMB208.6 million, representing a year-on-year increase of 11.8% from approximately RMB186.5 million recorded for the same period of 2015. The year-on-year increase in revenue was primarily due to the organization of Boyaa Board Games Tour which pulled the income growth. Gross profit increased by approximately 30.2% from approximately RMB99.8 million for the three months ended 31 December 2015 to approximately RMB129.9 million for the three months ended 31 December 2016. Gross profit margin increased from approximately 53.5% for the three months ended 31 December 2015 to approximately 62.3% for the three months ended 31 December 2016.
Revenue generated from mobile games in the fourth quarter increased by 28.6% Earnings accounted for total revenue continue to expand
For the year ended 31 December 2016, revenue generated from Boyaa’s mobile games amounted to approximately RMB485.2 million as compared to approximately RMB479.5 million in 2015, representing an increase of approximately 1.2% and which accounted for approximately 65.1% of total revenue in 2016(2015: 58.9% of total revenue).
For the three months ended 31 December 2016, revenue generated from mobile games amounted to approximately RMB143.2 million as compared to approximately RMB111.4 million recorded for the same period of 2015, representing a year-on-year increase of approximately 28.6%. For the three months ended 31 December 2016, revenue generated from language versions of simplified Chinese amounted to approximately RMB101.4 million, representing a year-on-year increase of 18.2% from approximately RMB85.8 million recorded for the same period of 2015.
Strong growth of paying players Enhanced operations by refining and diversifying products
As at 31 December 2016, the number of paying players and active users recorded a certain level of growth. The number of paying players increased by 14.2% from approximately 1.7 million players in the fourth quarter of 2015 to approximately 2.0 million players in the fourth quarter of 2016. The number of DAUs increased by 3.4% from approximately 5.6 million players in the fourth quarter of 2015 to approximately 5.8 million players in the fourth quarter of 2016. In the fourth quarter of 2016, the mobile-based Texas Hold’em recorded a year-on-year increase of 73.1%.
As at 31 December 2016, Boyaa online games product portfolio increased from 43 to 65, language versions of games provided reached 17, and newly-added products were on-line card and board games covering domestic and overseas regions, the variety of games enriched the choice available to players. Meanwhile, Boyaa will consistently enhance their operations by refining and diversifying their products, and constantly elevated the quality of games and user experience effectively.
Effective cost control Selling and marketing expenses of the Group nearly amounted to RMB 100 million
The Group’s selling and marketing expenses decreased by approximately 69.4% from approximately RMB146.7 million in 2015 to approximately RMB44.9 million in 2016, accounting for approximately 6.0% of revenue in 2016, decreased from approximately 18.0% in 2015. The decrease in selling and marketing expenses was mainly attributable to decreased advertising and promotional activities and a decrease in employee benefit expenses recorded in selling and marketing expenses resulting from the increase of the proportion of R&D personnel due to personnel turnover.
Enhanced online and offline activities and engagement Increased brand’s awareness and players’ loyalty
In 2016, we have successfully organised the Second Boyaa Poker Tour (“BPT”) in Macau and organised the Boyaa Board Games Tour in Sanya China which enhanced online and offline activities and engagement in competitions, and increased Boyaa brand’s awareness and Players’ loyalty. It is an important step for Boyaa in their endeavor to become an internationally recognized poker game competition brand.
In addition, with Boyaa outstanding performance in online card and board games industry, Boyaa were consecutively awarded two prizes from the financial sector, namely “Most Promising Listed Company 2016” by China Financial Market magazine and “Most Growth Potential Enterprise 2016” jointly by Zhitong Finance and 10JOKA. These are a due recognition from the capital market on Boyaa’s growth potential, and a high recognition from different sectors towards Boyaa’s brand. Boyaa’s Fight the Landlord was also awarded the “Golden Diamond” award for “Most Popular Game 2016”in the games industry in 2016 with its quality game experience and brand influence.
Mr. Zhang Wei, Chairman of the Board Executive Director and CEO of Boyaa Interactive, commented: It is our clear goal to become a global leading brand in online card and board games. We intend to place emphasis on developing the following: continue to expand our card and board games portfolio, while further explore the domestic and overseas operational model; focus on the development and innovation of mobile-based products, to enrich game content and rules; constantly improve our basic infrastructure and game features, and focus on enhancing the experience and service quality we provide to our users; organize more professional and high quality competition games, to enhance the loyalty of players and to develop Boyaa as a well-known brand.