NETDRAGON(HK:00777) 智通财经网·2025-03-31 07:24Core Viewpoint - The company has established a dual-core business strategy of "AI + Gaming" and "AI + Education," accelerating AI research and global expansion to capture growth opportunities brought by the AI wave [1][10]. Financial Performance - For the fiscal year 2024, the company reported revenue of RMB 60.47 billion, a year-on-year decline, primarily due to product optimization in the gaming sector and a demand pullback in its subsidiary Mynd.ai [1]. - Gross profit reached RMB 39.42 billion, with a gross margin of 65.2%, an increase of 3.3 percentage points year-on-year [1]. - EBITDA profit was RMB 14.18 billion, up 7.1% year-on-year, while net profit attributable to shareholders was RMB 6.46 billion, reflecting a 17.4% increase [1]. - The company declared a final dividend of HKD 0.50 per share, a 25% increase from the previous year [1]. AI Integration in Business - The company has fully established AI production lines in both gaming and education sectors, integrating the DeepSeek model across all business operations [3]. - In the gaming sector, AI has been applied in various areas such as code writing, design, and customer service, significantly reducing the need for development personnel and cutting costs [3]. - Active user metrics for key IP games like "Magic Domain" and "Honor of Kings" have shown growth, with the average monthly active users (MAU) for PC games increasing by 16.1% year-on-year [3]. Global Expansion and New Products - The company is optimizing its product lines and expanding its core IPs into overseas markets, with the overseas version of "Conquest" achieving an 8.8% revenue increase in local currency for 2024 [4]. - New games like "Code-Dragon" are expected to launch in overseas markets, supporting the company's game export strategy [4]. AI in Education - The company has been a pioneer in AI education since 2017, launching various AI-driven educational products and platforms, including the EDA metaverse education ecosystem in 2024 [4][5]. - Mynd.ai's Prometheus has a significant installation base covering over 1 million classrooms, providing a strong market foundation for AI educational devices [5]. R&D and Industry Chain Expansion - The company emphasizes R&D investment, particularly in AI, which is expected to optimize research costs and enhance profitability [6]. - The number of R&D personnel decreased by 14% in 2024 due to AI integration, which is projected to improve efficiency by 50%-200% [6]. Cash Flow and Shareholder Returns - As of the end of 2024, the company had net cash of RMB 2.1 billion, reflecting a 13.3% year-on-year increase, ensuring sufficient funds for AI development and shareholder returns [2][8]. - The company has maintained a high dividend payout ratio, with a historical average of 70.61% since 2005, and a dividend yield of nearly 10% for 2024 [9]. Future Outlook - The dual strategy of "AI + Gaming" and "AI + Education" is expected to drive continued growth in the company's performance, supported by strong cash flow and a commitment to R&D [10].