GlobeNewswire News Roomยท2024-08-22 10:00Financial Performance - Total net revenues for the second quarter of 2024 were RMB6.13 billion (US$843.1 million), representing a 16% increase year over year [2][4] - Advertising revenues increased by 30% year over year to RMB2.04 billion (US$280.4 million) [2][4] - Mobile games revenues grew by 13% year over year to RMB1.01 billion (US$138.6 million) [2][4] - Gross profit reached RMB1.83 billion (US$252.3 million), a 49% increase year over year, with a gross profit margin of 29.9%, up from 23.1% in the same period last year [2][4][5] - Net loss narrowed by 61% year over year to RMB608.1 million (US$83.7 million) [2][8] - Adjusted net loss was RMB271.0 million (US$37.3 million), narrowing by 72% year over year [2][8] User Engagement - Average daily active users (DAUs) increased by 6% year over year to 102.3 million [2][3] - Monthly active users (MAUs) grew to 336 million, with daily average time spent per user increasing to 99 minutes from 94 minutes in the same period last year [3] Operational Efficiency - Operating cash flow was RMB1.75 billion (US$240.9 million), compared to negative RMB21.2 million for the same period last year [2][8] - Total operating expenses decreased by 3% year over year to RMB2.42 billion (US$332.8 million) [6] - Sales and marketing expenses increased by 13% year over year to RMB1.04 billion (US$142.5 million), primarily due to marketing for new game launches [6] Strategic Developments - The successful launch of the strategy game "San Guo: Mou Ding Tian Xia" attracted millions of players, showcasing the company's operational capabilities beyond ACG (Anime, Comic, and Games) [3] - The company aims to enhance its commercialization capabilities to unlock community value and position itself for future profitability and growth [3]