HONG KONG--(BUSINESS WIRE)--Highlights
- Revenue increased 16.7% to RMB3.44 billion
- Gross profit increased 113.9% to RMB550 million
- Profit for the period attributable to equity shareholders of the Company increased 351.1% to RMB84.8 million
|Year ended 31 December|
Profit for the year attributable to equity shareholders of the Company
|Basic earnings per share (RMB cents)||0.10||0.02||+400%|
Huan Yue Interactive Holdings Limited (“Huan Yue Interactive” or the “Company” and its subsidiaries, collectively the “Group”, HKEx: 505), is pleased to announce its results for the year ended 31 December 2016. During the year, Huan Yue recorded revenue of RMB3.44 billion (year ended 31 December 2015: RMB2.94 billion), representing an increase of 16.7%; and gross profit of RMB550 million (year ended 31 December 2015: RMB260 million), representing an increase of 113.9%.
Profit for the year attributable to equity shareholders of the Company increased 351.1% to RMB84.8 million (year ended 31 December 2015: RMB18.8 million). Basic earnings per share amounted to RMB0.10 (year ended 31 December 2015: RMB0.02).
In August 2016, the Group had completed the acquisition of Funnytime Limited (“Funnytime”), and through a series of contractual arrangements, the Group controls Hefei Zhangyue Network Technology Co., Ltd.
From January to December 2016, Funnytime realized a total revenue of RMB34.4 million and net profit of RMB17.4 million. The adjusted net profit of RMB19.2 million, achieved the performance target stipulated in the share sales and purchase agreement. Funnytime was consolidated into the Group’s financial statements from August 2016, with its net profit of RMB6.2 million from August to 31 December 2016.
Game development: in 2016, Zhangyue developed three online games, which had been on line or in the test phase, including the “Martial Peak”, as the key IP product cooperated by Zhangyue and Qidian Chinese Net, a well-known online literature website in China, had been on line in China in December 2016.
Game operation: Game operation is the strength of Zhangyue and its main source of profit. In 2016, the operating line of game business reached RMB130 million of game charging record and there were ten online web games, of which a well-known IP game called “Scions of Fate” made contribution of more than 90% of the revenue. In the end of 2016, Zhangyue started to operate two rating products, including “Battle of Gaza City”, which already had more than RMB one million of monthly game charging revenue. Online game called “Adventure World”, which was online in December 2016, entered the QQ Game Hall (Tencent game platform). In addition, the game operating business of Zhangyue has shifted its strategy to focus on the leisure sports market and mobile games market with long-term income through active product layout. As at the end of 2016, Zhangyue had four sub-categories web game products including “Happy Racing”, “Bosozoku”, “King of Gun Battle” and “Cocoa food war”, all of which were expected to cooperate with Tencent’s game platform.
COPPER PLATES AND STRIPS BUSINESS
During the reporting period, the Group’s copper processing business realized a total revenue of RMB3,418.9 million and sales volume of 126,598 tons, representing an increase of 16.2% and 23.0% respectively over 2015. The increase in copper plates and strips revenue was mainly due to the Group’s increased sales volume of copper products during the reporting period.
Innovative research and development: In 2016, the Group continued to strengthen the process innovation and product innovation. During the reporting period, the Group’s copper plates and strips operating company Ningbo Xingye Shengtai Group Ltd. (“Shengtai Group”) became one of the units for the Tenth Five-Year Plan major R&D project: “high-performance high-precision copper and copper alloy plate and strip manufacturing”. During the reporting period, Shengtai Group developed two new products of copper and nickel as well as copper and zinc alloy, and had declared the identification of new product achievements to the industry associations and local government.
Optimizing management system: In 2016, in order to adapt to large-scale production and management after major technological transformation and upgrading of equipments, Shengtai Group optimized its organizational framework and set a new material center, which regulated and controlled all kinds of resource elements required for production process, as well as optimized the system of sales center and manufacturing, to be more convenient for the interactions between production and market clients.
In 2017, we will continue to uphold the concept of innovation and development. Under the business idea of “sound management of heavy asset business, actively develop light asset business”, we will continue to stably develop our copper plate and strip business, and strive to make online game business into the ranks of well-known gaming company in China, and therefore we wish to seek greater benefits and returns for the Company’s shareholders.
About Huan Yue Interactive Holdings Limited
Huan Yue Interactive Holdings Limited (HKEx: 0505) is proactively looking for potential opportunities in the internet and online gaming industry. It is one of the leading high precision producers of copper plates and strips in the PRC as well, which is engaged in manufacturing and sales of high precision copper plates and strips, trading of raw materials, provision of processing services.