(22 August 2024) Boyaa Interactive International Limited (“Boyaa Interactive” or the “Company”, together with its subsidiaries, the “Group”, stock code: 0434), a top-ranking developer and operator of online card and board games in China, has announced its unaudited consolidated results for the three and six months ended 30 June 2024 (the “Reporting Period”) (the “Interim Results”).

The Group recorded a year-on-year increase of approximately 9.8% in revenue and a year-on-year increase of approximately 405.5% in net profit in the first half of 2024

The Group recorded revenue of approximately RMB213.4 million in the first half of 2024, representing a year-on-year increase of approximately 9.8% compared to the first half of 2023. In particular, revenue generated from mobile games, web-based games and value-added gain from digital assets accounted for approximately 67.5%, 28.7% and 3.8% of the Group’s total revenue in the first half of 2024, respectively.

The increase in revenue in the first half of 2024 is primarily due to the increase in the Group’s revenue generated from online games as a result of the Group’s holding of certain online operational activities and continuous optimization of its gaming products and gameplay; and value-added gain of digital assets generated from the cryptocurrencies held by the Group.

The Group’s gross profit for the first half of 2024 amounted to approximately RMB151.7 million, representing a year-on-year increase of approximately 16.9% from approximately RMB129.7 million recorded for the same period in 2023. The Group’s gross profit margin were approximately 71.1% and 66.7%, respectively, for the first half of 2024 and the same period in 2023.

In the first half of 2024, the Group recorded an unaudited non-IFRS adjusted net profit of approximately RMB288.2 million, representing a year-on-year increase of approximately 405.5% as compared to the same period in 2023, mainly due to the increase in revenue recorded for the first half of 2024 as compared to the same period in 2023; the increase in the fair value of cryptocurrencies held over the purchase cost for the first half of 2024; and the reduction in the decrease in the fair value of financial assets such as equity investment partnerships for the first half of 2024 as compared to the same period in 2023.

In the second quarter of 2024, the Group recorded a year-on-year increase of approximately 5.8% in revenue, and the ARPPU grew in mobile versions of other card and board games

In the second quarter of 2024, the Group recorded revenue of approximately RMB104.8 million, representing a year-on-year increase of approximately 5.8% compared to the second quarter of 2023, primarily due to value-added gain of digital assets from the cryptocurrencies held by the Group.

In terms of the operating data performance, the Group recorded a decrease in the number of paying players and users in the second quarter of 2024 as compared to the first quarter of 2024, of which the number of paying players decreased by 6.3% from approximately 0.22 million in the first quarter of 2024 to approximately 0.21 million in the second quarter of 2024. The number of DAUs decreased by 2.4% from approximately 1.15 million in the first quarter of 2024 to approximately 1.12 million in the second quarter of 2024. The number of MAUs decreased by 1.9% from approximately 4.2 million in the first quarter of 2024 to approximately 4.1 million in the second quarter of 2024.

However, the ARPPU grew in mobile versions of other card and board games.

The Group held approximately RMB1,688.4 million of digital assets, and continued to increase its BTC holdings

During 2023, the Group commenced the purchase of cryptocurrencies. As at 30 June 2024, the fair value of the Group’s digital assets amounted to approximately RMB1,688.4 million, which mainly consisted of BTC, ETH and USDT. For the six months ended 30 June 2024, the Group recorded fair value gain on digital assets of approximately RMB245.7 million.

As at 30 June 2024, the Group held approximately 2,079 units of BTC with an average cost of approximately US$51,299 per unit and approximately 15,279 units of ETH with an average cost of approximately US$2,756 per unit.

As at the date of the interim results announcement, the Group held approximately 2,410 units of BTC with an average cost of approximately US$51,856 per unit and approximately 15,343 units of ETH with an average cost of approximately US$2,756 per unit.

Since the second quarter of 2024, the Group has continued to increase its BTC holdings. According to the 2024 First Quarterly Results Announcement of the Group, as at 31 March 2024, the Group held approximately 1,194 units of BTC with an average cost of approximately US$43,100 per unit. The Group’s BTC holdings increased by 885 units in the second quarter of 2024 and increased by 331 units during the period from 30 June 2024 to the date of the interim results announcement. Purchase and holding of cryptocurrencies is a pivotal move for the Group to path its layout and development of Web3 business, and a significant component of the Group’s asset allocation strategy.

During the Reporting Period and up to the date of the interim results announcement, other than Bitcoin, ETH and USDT, the Group also held ATOM and BNB. As at the date of the interim results announcement, the Group had purchased ATOM and BNB with a total amount of approximately US$2.58 million.

Cosmos is a blockchain public chain network with development potential, with ATOM as the core governance token of the Cosmos public chain network. BNB is the cryptocurrency that supports the entire BNB Chain ecosystem, which can be used as a transaction fee on the Binance cryptocurrency exchange and to participate in the activities of the Binance cryptocurrency exchange. It is one of the most popular utility tokens in the world.

Upholding the concept of “growing in love” on charity work, the Group stays true to the mission and continues to make contributions to society.

In the process of development, the Group always stays true to the mission and upholds the concept of “growing in love” on charity work, continuing its fulfilment of social responsibility to make contributions to society.

During the second quarter of 2024, the Group participated in the welfare activity “Caring for Mountainous Areas and Donating Books to Help Rural Students” organized by the Guangdong Provincial Education Foundation, by donating funds to establish libraries in rural schools. The Group also participated in the love donation activity for schools in Xinjiang Region organized by the China Audio-video and Digital Publishing Association, by donating school supplies in schools to the second quarter of 2024.

The Group will maintain its focus on establishing itself as a pure and leading Web3 listed company, which entails ramping up R&D efforts for Web3 gaming products

According to the Group’s management, “The Group will maintain its focus on establishing itself as a pure and leading Web3 listed company. This entails ramping up R&D efforts for Web3 gaming products, enriching contents and rules of gaming products, and enhancing gaming features and infrastructure (including Web3-related infrastructure). The aim is to elevate user experience, while exploring innovative operational models for gaming products, especially Web3 gaming products. Concurrently, the Group will prioritize product refinement and operational diversification to craft high-quality card and board gaming products, competition products, and industry-leading Web3 gaming products. On the basis of consolidating its existing market share, the Group will extend its reach into international markets and will vigorously promote its business development and deployment in the Web3 field, in order to realize its strategic plan for Web3 business development.”

Moving forward, the Group will strictly comply with various laws and regulations in various jurisdictions that it has operations and be committed to developing high-quality card and board gaming products and industry-leading Web3 gaming products. It will continue the journey to forge a century-old brand for Boyaa online card and board games.