Core Viewpoint - Tian Ge Interactive (01980.HK) reported a significant turnaround in its financial performance for the year ending December 31, 2024, achieving a revenue of 10.16 million RMB and a net profit of 20 million RMB, compared to a loss of 135 million RMB in the previous year [1][2][3]. Financial Performance - Revenue for 2024 was 10.16 million RMB, a decrease from 67.62 million RMB in 2023 [2]. - The company reported a gross profit of 8.1 million RMB, with a gross profit margin of 79.8%, down from 87.0% in the previous year [2]. - Net profit reached 19.92 million RMB, marking a net profit margin of 196.0%, a significant recovery from a net loss margin of 199.7% in 2023 [2]. - Earnings per share improved to 0.018 RMB from a loss of 0.114 RMB per share in the previous year [2]. Investment Strategy and Portfolio - The company has strategically invested in high-growth potential sectors, including social reasoning games, Southeast Asian e-commerce, and short video content in India, which contributed to its improved financial performance [3][5]. - As of December 31, 2024, Tian Ge Interactive's financial assets totaled 1.757 billion RMB, with significant holdings in fund investments, private investments, and wealth management products [6][7]. - The company’s investment portfolio includes stakes in emerging technology companies, which are expected to yield substantial returns due to their innovative business models and strong market potential [23][24]. Market Position and Valuation - Despite the positive financial results, the company's market capitalization is currently undervalued at approximately 662 million HKD (about 607 million RMB), compared to the average price-to-book ratio of 0.85 for the investment and asset management sector [8]. - The company’s cash and cash equivalents stood at 467 million RMB, indicating a strong liquidity position [8]. - The market perception of Tian Ge Interactive remains focused on its traditional live-streaming business, overlooking the hidden value in its technology investments, particularly in AI-related assets [25].