XD INC(02400) 格隆汇·2025-03-31 00:51Core Viewpoint - The company has entered a sustainable profitability phase, achieving record revenue and a significant turnaround in net profit amidst a global gaming industry adjustment [2][4]. Financial Performance - The company's total revenue for the year reached 5.01 billion RMB, a year-on-year increase of 47.9%, marking a record high since its listing [3]. - The net profit turned positive at 890 million RMB, compared to a loss of 65 million RMB in the previous year [3]. - Gross profit increased by 68.2% to 3.48 billion RMB, with an overall gross margin improvement to 69.4%, up 7.7 percentage points from the previous year [3]. Business Structure Optimization - Self-developed games contributed 3.43 billion RMB in revenue, a 64.2% increase year-on-year, with titles like "Start Up Muffin," "Sword of Lily," and "Heart Town" driving performance [4]. - The TapTap platform generated 1.58 billion RMB in revenue, a 21.6% increase, maintaining a high gross margin of 84% [4]. Operational Efficiency - The company achieved a 9.5% reduction in R&D expenses to 920 million RMB, while the R&D team size decreased from 1,031 to 993 [4]. - The company redeemed 1.596 billion USD in convertible bonds, reducing the debt-to-equity ratio from 57.6% to 30.8% [4]. - Operating cash flow turned positive, with cash and cash equivalents reaching 2.78 billion RMB, contributing to a total liquidity asset of 2.91 billion RMB [4]. Shareholder Returns - The board proposed a final dividend of 0.4 HKD per share, marking the company's first dividend distribution in five years, reflecting a commitment to shareholder returns and confidence in future profitability [4]. Game Development Strategy - The company is diversifying its game portfolio through the renewal of classic IPs and new game reserves, reducing reliance on single hits and forming a "long-lasting game" strategy [6]. - The average monthly active users for network games increased by 14.5% to 14.25 million, while average monthly paying users grew by 23.1% to 1.61 million [6]. Upcoming Titles and Pipeline - The company has two network games in development, likely "Iser: Reboot Day" and "Ragnarok RO: Guardian of Eternal Love 2," targeting the strategy card and MMORPG markets [9]. - The company is expanding its presence in the buyout game sector, with titles like "The Legend of the Hero" and upcoming releases enhancing platform diversity and player engagement [9]. TapTap Platform Evolution - The TapTap platform is evolving from a gaming community to a comprehensive distribution platform, with monthly active users increasing by 23% to 44.05 million [12]. - Exclusive content and developer ecosystem initiatives have driven user growth, while traditional channel limitations are being overcome through integrated resource promotion [12][14]. Industry Trends and Growth Drivers - The gaming industry is experiencing a structural upgrade, with the domestic market projected to grow by 7.53% to approximately 325.78 billion RMB [19]. - The overseas revenue for self-developed games reached a record high of 18.557 billion USD, reflecting a 13.39% year-on-year increase, validating the company's global strategy [20]. - The application of AI technology in game development is expected to enhance operational efficiency and create additional value [21].