The company's revenue declined slightly in the first half of 2022, and the operating profit margin increased significantly under the strategy of reducing cost and increasing efficiency.
In the first half of 2022, the company achieved revenue of 4.09 billion yuan, a decrease of 5.9% over the same period last year, and an adjusted net profit of 666 million yuan, an increase of 0.2% over the same period last year. In the first half of the year, due to changes in the macro environment, the company took a series of measures to reduce costs and increase efficiency, and the operating efficiency was significantly improved. 22H1's sales expense rate and management expense rate decreased by 3.86 and 0.97pct respectively, and the operating profit margin under non-international standards increased to 17% from 14.8% in the same period last year.
With the continuous enrichment of online content, the company has shrunk costs, reduced sales and promotion, and online business revenue has declined slightly.
High-quality online article IP is the source of the company's future revenue growth. In the first half of the year, the company's high-quality online article content continued to increase, adding about 300,000 writers, 600000 novels and 16 billion new words. Science fiction has become the fastest growing segment of the platform. On the revenue side, the company's online business revenue decreased by 9.2% to 2.307 billion yuan compared with the same period last year. We believe that the decline in revenue is mainly due to the company's reduction in cost and efficiency, reducing the promotion of sales expenses and the access of users. The number of households paying fees has dropped to 8.1 million yuan, and the ARPPU has increased to 38.8 yuan. In terms of free reading, the efficiency of advertising has declined. We believe that mainly due to the downward macroeconomic growth, advertisers have become relatively cautious. In the future, as the epidemic is effectively controlled and economic growth resumes in the second half of the year, we expect the company's free business to bottom out.
IP adapts popular styles frequently, and the visualization construction has achieved remarkable results. We believe that IP visualization construction is the focus of the company's future efforts, the company's IP adaptation of popular styles frequently in the first half of the year, and achieved remarkable results. In terms of film and television adaptation, the company successfully launched popular dramas such as "the World", "Longxi from the Wind" and "Heart residence" in the first half of the year, and will continue to carry out serial development of IP content such as "Qingyu year", "redundant son-in-law" and "Dafeng Dabeng Man" in the future.
In the field of animation, the company launched two new titles, "Star change" and "Wu Zhi Qiankun". According to the company's 2022 semi-annual report citing Guduo data, 11 of the top 20 domestic animation works in Tencent video in the first half of 2022 came from the company IP. In the animation field, the company continues to promote and Tencent animation 3 years 300 animation adaptation plan, there are more than 170 company IP adaptation works in Tencent animation online. In the commercialization of IP, the company has made initial progress in IP derivative development through cooperation with the upstream and downstream of the industry. in the future, the company will carry out multi-level commodity development around many high-quality IP, such as "Qingyu years" and "full-time experts". We believe that the company has high-quality online text resources of the whole network, is at the top of the content industry chain, and has great realization potential in film and television, games, animation, commodities and so on. In the future, the company will continue to be optimistic about the development and realization of derivative products from IP content to downstream.
Risk hint. The growth rate of paid reading users declined, and the cash growth of free reading was lower than expected.