XD INC(02400)2024-08-30 04:01Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 2,220,567 thousand, a 26.7% increase from RMB 1,753,102 thousand in the same period of 2023[2] - Gross profit for the same period was RMB 1,496,811 thousand, reflecting a 44.3% increase compared to RMB 1,037,261 thousand in 2023[2] - Adjusted profit for the period was RMB 278,811 thousand, up 115.1% from RMB 129,647 thousand year-on-year[2] - Net profit for the six months ended June 30, 2024, was RMB 250.6 million, compared to RMB 102.8 million for the same period in 2023[31] - The company's operating profit for the six months ended June 30, 2024, was RMB 270.5 million, significantly higher than RMB 122.7 million in the previous year[32] - The adjusted EBITDA for the six months ended June 30, 2024, was RMB 319.3 million, up from RMB 184.8 million in the previous year[32] - Profit attributable to equity holders for the six months ended June 30, 2024, was RMB 237,290 thousand, up 110.0% from RMB 112,979 thousand in the same period of 2023[35] - Basic and diluted earnings per share for the six months ended June 30, 2024, were both RMB 0.43, compared to RMB 0.19 in the same period of 2023[42] User Engagement - Average monthly active users (MAU) for online games decreased by 28.1% to 9,534 thousand from 13,269 thousand in the previous year[3] - Average monthly paying users (MPU) for online games fell by 21.4% to 1,092 thousand from 1,389 thousand in the same period last year[3] - TapTap's average MAU for the Chinese version increased by 27.3% to 43,242 thousand, recovering from a decline in 2023[5] - The average monthly active users (MAU) for TapTap's international version decreased by 29.0% year-on-year to 5.1 million, mainly due to a significant drop in users from India[14] Game Business Performance - The new self-developed game "GoGo Muffin" launched in January and May 2024 contributed to a 29.3% increase in game business revenue year-on-year[5] - As of June 30, 2024, the company's game business revenue increased by 29.3% year-on-year to RMB 1,486.3 million[17] - Revenue from online games rose by 32.0% year-on-year to RMB 1,425.9 million, driven by new game launches such as "GoGo Muffin" and "Sword of Convallaria"[17] - Revenue from paid games decreased by 14.5% year-on-year to RMB 55.2 million, primarily due to declines in existing titles[17] - The game "Heartopia" achieved over 25 million downloads in its first month after launch in July 2024[5] - The company maintains a portfolio of 20 online games and 33 paid games as of June 30, 2024[6] Expenses and Costs - Sales and marketing expenses rose by 110.4% to RMB 695.3 million, primarily due to promotional costs for new games and increased marketing expenses for the TapTap platform[26] - Research and development expenses decreased by 20.5% to RMB 419.5 million, attributed to project restructuring and a reduction in the number of R&D personnel from 1,143 to 997[27] - General and administrative expenses increased by 35.9% to RMB 138.3 million, mainly due to an increase in share-based compensation expenses[28] - The cost of revenue increased by 1.1% year-on-year to RMB 723.8 million as of June 30, 2024[20] Revenue Breakdown - Revenue from the TapTap platform segment accounted for 15% of total revenue in the six months ended June 30, 2024, down from 19% in the same period of 2023[54] - The revenue from online marketing services for the six months ended June 30, 2024, was RMB 1,144,657 thousand, compared to RMB 890,848 thousand for the same period in 2023, indicating a growth of approximately 28.5%[52] - Revenue from mainland China was RMB 862,829 thousand, up from RMB 769,973 thousand, reflecting an increase of 12.0%[56] - Revenue from other regions increased significantly to RMB 618,245 thousand, compared to RMB 374,684 thousand, marking a 65.0% growth[56] Financial Position - The company's cash and cash equivalents decreased to RMB 2,163,500 thousand as of June 30, 2024, down from RMB 3,206,821 thousand as of December 31, 2023[36] - The company's debt-to-asset ratio improved to 42.9% as of June 30, 2024, compared to 57.6% as of December 31, 2023[38] - The total liabilities decreased to RMB 1,449,165 thousand as of June 30, 2024, down from RMB 2,540,691 thousand as of December 31, 2023, indicating a reduction of approximately 43%[44] - The total equity amounted to RMB 1,930,993 thousand, an increase from RMB 1,868,751 thousand as of December 31, 2023, representing a growth of approximately 3.32%[44] Corporate Governance and Strategy - The company complied with all applicable provisions of the Corporate Governance Code during the six months ended June 30, 2024, except for the separation of the roles of Chairman and CEO[83] - The board of directors consists of executive directors Huang Yimeng, Dai Yunjie, and Fan Shuying; non-executive director Wu Meng; and independent non-executive directors Pei Dapeng, Xin Quandong, and Liu Qianli[90] - The company is focused on ensuring the accuracy of information and providing strategic advice for investment and corporate decisions[90] - The company aims to maintain transparency and accountability in its financial reporting and communications[90] - Future outlook and performance guidance will be provided to stakeholders to align expectations[90] Future Plans - The company plans to leverage generative AI service TapSight to enhance user service capabilities in the future[5] - The company plans to release more paid games on multiple platforms in the second half of 2024, including "Hero's Adventure" and "Enter the Gungeon" mobile versions[11] - The company plans to reinvest retained earnings of RMB 1,541 million for further business expansion in China[65] - New product and technology development are key areas of focus for the company moving forward[90]