XD INC(02400)2025-04-29 09:07Financial Performance - The company's total revenue for the year exceeded RMB 5 billion, representing a year-on-year growth of nearly 50%[7]. - The net profit attributable to the parent company reached RMB 811 million, marking the first annual profit in five years[7]. - For the year ended December 31, 2024, the company's gaming business revenue increased by 64.2% to RMB 3,434.1 million, compared to RMB 2,091.7 million in 2023[32]. - Revenue from online games rose by 69.1% to RMB 3,316.8 million, driven by new game launches including "GoGo Muffin," "Sword of Convallaria," and "Heartopia"[32]. - The net profit for the year ended December 31, 2024, was RMB 890.5 million, compared to a net loss of RMB 65.4 million for the year ended December 31, 2023[46]. - The operating profit for the year ended December 31, 2024, was RMB 914.8 million, a significant improvement from an operating loss of RMB 5.2 million in 2023[49]. - The EBITDA for the year ended December 31, 2024, was RMB 997.2 million, compared to RMB 107.0 million in 2023[49]. - The total liabilities to total assets ratio as of December 31, 2024, was 30.8%, a decrease from 57.6% as of December 31, 2023[53]. Game Development and Performance - The game "GoGo Muffin" launched globally and achieved significant profits, indicating a successful start for the company's publishing business[8]. - The game "Heartopia" surpassed 20 million downloads on the TapTap platform shortly after its launch, highlighting strong player demand for life simulation games[8]. - The re-release of "Ragnarok M: Eternal Love" in Southeast Asia and Taiwan received positive feedback, reaffirming the game's enduring popularity[9]. - The company plans to develop a sequel, "Ragnarok M: Eternal Love II," aiming to create a fully 3D open world experience[10]. - "Torchlight: Infinite" has seen gradual performance improvements since last year, with core player recognition increasing, indicating a growing brand presence in the action RPG genre[10]. - Over half of the core players of "Torchlight: Infinite" are now PC users, reflecting the game's acceptance among core PC gamers[11]. - The upcoming game "Etheria," developed using Unreal Engine, represents a significant advancement in the company's production capabilities[11]. - The company aims to differentiate its products in a competitive market while expanding its game portfolio through global testing and feedback[11]. TapTap Platform Performance - TapTap's game business revenue increased by 64.2% year-over-year, driven by new self-developed games such as "GoGo Muffin," "Sword of Convallaria," and "Heartopia"[20]. - The average monthly active users (MAU) of the TapTap China app grew by 23.0% year-over-year, reaching 44.0 million[20]. - The TapTap platform's revenue increased by 21.6% to RMB 1,578.0 million, correlating with a 23.0% increase in average monthly active users to 44.0 million[35]. - The TapTap international version app's average MAU decreased by 13.0% year-over-year to 5.0 million, primarily due to a significant drop in users from India and reduced overseas marketing expenditures[29]. AI and Technology Integration - TapTap successfully promoted games using AI recommendation technology, enhancing user acquisition and promotion efficiency[12]. - The company plans to launch a PC version of TapTap, maintaining a no-revenue-sharing model, allowing developers to retain 100% of their income[15]. - TapTap has integrated AI tools into daily operations and is exploring new business development directions leveraging AI and machine learning[20]. - The company has completed the filing for its generative AI service, TapSight, and added AI Q&A and DeepSeek search functionalities to TapTap[20]. - The company is optimistic about the future of AI technology in game development, anticipating significant reductions in development costs[16]. Corporate Governance and Management - The company has a strong governance structure with independent non-executive directors possessing extensive industry experience[67][68][69][70]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[78]. - The company aims to maintain at least 10% female representation on the board and is committed to improving gender diversity in senior management roles[84]. - The board has a diversity policy that considers various factors such as professional experience, skills, and educational background for appointments[83]. - The company has adopted a corporate governance code and has complied with all applicable provisions as of December 31, 2024[73]. Employee and Workplace Policies - The company has a zero-tolerance policy towards workplace harassment and discrimination, ensuring fair opportunities for all employees[193]. - The employee compensation system includes base salary, allowances, performance bonuses, year-end bonuses, and stock options to maintain market competitiveness[199]. - The company provides social insurance benefits, including pension, medical, maternity, work injury, unemployment insurance, and housing fund, along with various subsidies[199]. - The company emphasizes the urgency of preventing accidents and has taken proactive measures to enhance workplace safety[200]. - The overall employee turnover rate for 2024 is 20.86%, with male turnover at 21.32% and female turnover at 19.77%[198]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to reviewing and monitoring its policies and practices regarding significant ESG matters to ensure compliance with legal and regulatory requirements[98]. - The board of directors is responsible for overseeing ESG matters and has established a five-tier governance structure to manage these issues effectively[144]. - The company has set environmental goals and is continuously assessing and managing ESG issues, with plans to establish quantitative targets and benchmarks[144]. - The company promotes community harmony and public welfare through various activities, including volunteer work and social participation[151]. - The company has established a charity organization named "Heartfelt" to support community activities, donating a total of 1,841.79 yuan to "Baby Home" this year[190]. Intellectual Property and Innovation - The company has seen a 400% year-on-year increase in overseas intellectual property applications and a 340% increase in domestic applications, reflecting a significant expansion in its IP protection efforts[167]. - The number of invention patent authorizations has increased by 200% year-on-year, while design patent authorizations have risen by 150%, indicating a strong focus on innovation[167]. - The total number of intellectual property rights held by the company is 2,448, including 1,557 trademarks, 25 patents, and 247 software copyrights[169]. - The company has established a clear process for intellectual property registration, providing employees with incentives for innovation and patent applications[167]. Customer Engagement and Satisfaction - The group received a total of 26 complaints this year, achieving a complaint response rate and handling rate of 100%, with a player satisfaction rate of 99.92%[181]. - The group has established multiple communication channels, including a 24-hour customer service system and self-developed tools like Tapdesk, enhancing user satisfaction and problem resolution rates[179]. - The group evaluated 382 suppliers this year, ensuring compliance with anti-bribery clauses and promoting sustainable practices in procurement[184].