XD INC(02400)2025-03-28 04:00Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 5,012,107 thousand, a 47.9% increase from RMB 3,389,144 thousand in 2023[5] - Gross profit for the same period was RMB 3,478,530 thousand, reflecting a 68.2% increase from RMB 2,068,370 thousand in 2023[5] - The company reported a net profit of RMB 890,491 thousand, compared to a net loss of RMB 65,362 thousand in 2023[5] - The operating profit for the year ended December 31, 2024, was RMB 914,789 thousand, compared to an operating loss of RMB 5,222 thousand in 2023[52] - The adjusted EBITDA for the year was RMB 1,056.4 million, compared to RMB 158.4 million in the previous year[39] - The company reported basic earnings per share of RMB 1.71 for the year ended December 31, 2024, compared to a loss per share of RMB 0.18 in 2023[53] - The company reported a net profit attributable to equity holders of RMB 811,530 thousand for 2024, a turnaround from a loss of RMB 83,039 thousand in 2023[87] User Engagement - Average monthly active users (MAU) for online games increased by 14.5% to 14,247 thousand, while average monthly paying users (MPU) rose by 23.1% to 1,609 thousand[6][11] - The TapTap China version app's average MAU grew by 23.0% to 44,046 thousand, contributing to user growth and brand recognition[8] - The average monthly active users (MAU) of the TapTap China app reached 44.0 million, a year-on-year increase of 23.0%, attributed to the launch of popular mobile games and enhanced marketing activities [17] - The average MAU for the TapTap international version decreased by 13.0% year-on-year to 5.0 million, mainly due to a significant drop in users from India and reduced overseas marketing expenditures [18] Game Development and Revenue - New self-developed games, including "GoGo Muffin," "Sword of Convallaria," and "Heartopia," drove a 64.2% increase in game business revenue year-on-year[8] - As of December 31, 2024, the company's game business revenue increased by 64.2% year-on-year to RMB 3,434.1 million, driven by new game launches such as "GoGo Muffin," "Sword of Convallaria," and "Heartopia" [20] - The existing game portfolio includes 21 online games and 35 paid games as of December 31, 2024[10] - The revenue from paid games decreased by 8.2% year-on-year to RMB 110.7 million, primarily due to a decline in existing paid game revenues [20] - The company's game operation revenue, recognized on a gross basis, increased by 72.4% year-on-year to RMB 3,280.1 million [22] - Game operation revenue in mainland China increased to RMB 2,134,300 thousand in 2024, up from RMB 1,394,503 thousand in 2023, reflecting a growth of about 53%[72] Expenses and Costs - The cost of revenue increased by 16.1% year-on-year to RMB 1,534 million, with the gaming segment accounting for RMB 1,285.9 million of this cost [25] - Sales and marketing expenses increased by 61.5% year-on-year to RMB 1,397.3 million, primarily due to promotional costs for newly launched games[32] - Research and development expenses decreased by 9.5% year-on-year to RMB 919.4 million, attributed to a reduction in share-based payments[33] - General and administrative expenses rose by 18.8% year-on-year to RMB 266.9 million, mainly due to performance-based bonuses and share-based payments[34] - The total cost of revenue for the year was RMB 1,320,774 thousand, with a significant portion attributed to online marketing services at RMB 205,227 thousand[69] Corporate Governance and Compliance - The company is committed to high standards of corporate governance, having complied with all applicable code provisions except for the separation of the roles of Chairman and CEO[114] - The company plans to review the effectiveness of its corporate governance structure to assess the necessity of separating the roles of Chairman and CEO[115] - The audit committee, consisting of three members, has reviewed the audited consolidated financial statements for the fiscal year ending December 31, 2024, ensuring compliance with applicable accounting principles and full disclosure[117] - The auditor has verified that the financial figures in the announcement align with the audited consolidated financial statements for the fiscal year ending December 31, 2024, although no assurance opinion was provided[118] Future Plans and Investments - The company plans to continue integrating AI and machine learning tools into daily operations and explore new business development directions[8] - The company is focusing on optimizing its product layout and expanding its offerings with anticipated high-quality mobile games in 2025 [15] - The company plans to continue expanding its market presence, particularly in Southeast Asia, Hong Kong, Macau, Taiwan, North America, Japan, and South Korea, as indicated by the revenue growth from these regions[72] - The company has no plans for significant future investments or capital asset acquisitions as of December 31, 2024[49] Financial Position - The company's debt-to-asset ratio improved to 30.8% as of December 31, 2024, down from 57.6% in 2023[45] - The total assets of the company were RMB 3,923,201 thousand, down from RMB 4,409,442 thousand in 2023[55] - The total liabilities decreased significantly from RMB 2,540,691 thousand in 2023 to RMB 1,208,582 thousand in 2024, indicating a reduction of about 52%[56] - The total equity attributable to the company's equity holders increased to RMB 2,513,819 thousand in 2024, up from RMB 1,709,173 thousand in 2023, reflecting a growth of approximately 47%[56] Employee and Shareholder Information - The company had 724 employees engaged in game development as of December 31, 2024, a decrease of 22 from the previous year, reflecting a focus on cost reduction and efficiency [14] - As of December 31, 2024, the company had 1,400 employees, a decrease of approximately 3.6% from 1,452 employees as of December 31, 2023[108] - Employee benefits expenses for the year ending December 31, 2024, were approximately RMB 1,195.9 million, an increase of about 1.5% from RMB 1,178.5 million for the previous year[108] - A final dividend of HKD 0.4 per share has been proposed for the year ended December 31, 2024[9] - The company did not declare or pay any dividends for the years ended December 31, 2023, and 2024, but proposed a final dividend of HKD 0.4 per share for the year ended December 31, 2024, subject to shareholder approval[102]