Core Viewpoint - The company, Jiaxiang Interactive, reported its first net profit loss since its IPO in 2019, with a revenue of 1.386 billion yuan, down 22.13% year-on-year, and a net loss of 74.17 million yuan, down 116.93% year-on-year [3][5][6] Financial Performance - Jiaxiang Interactive's operating revenue for 2024 was 1.386 billion yuan, a decrease of 22.13% compared to the previous year [3][5] - The net profit loss of 74.17 million yuan marked the company's first loss since its listing [6] - The net cash flow from operating activities was 71.07 million yuan, down 83.87% year-on-year [5] - Sales and marketing expenses increased by 31.1% year-on-year to 447 million yuan, primarily due to a rise in advertising and promotional costs [4][8] Business Strategy and Market Position - Jiaxiang Interactive focuses on localizing card games, particularly Mahjong and Poker, and has transitioned from a regional to a national market presence [6] - The company has over 1,000 streamers promoting its games through various interactive events, which has generated significant traffic for its core products [4][8] - Despite the increase in marketing expenses, the company acknowledged that these investments did not effectively drive revenue growth, leading to pressure on overall profitability [4][9] User Engagement and Product Development - The company reported a decline in daily active users (DAU) and monthly active users (MAU), with DAU at 13.37 million and MAU at 64.34 million, down from 14.38 million and 68.28 million respectively [6][7] - In 2024, Jiaxiang Interactive plans to launch two key products targeting the Middle Eastern and Japanese markets, with adaptations to local cultures [7] - The company has also introduced 3D versions of its core products, but these new releases have not yet significantly impacted revenue [6] Marketing and User Acquisition - Jiaxiang Interactive has adopted a multi-channel marketing strategy, including partnerships with leading streamers and MCN agencies to enhance brand exposure and user acquisition [8] - The number of paying users increased by 35% year-on-year to 17.8 million, indicating a growing willingness to pay among users [8] - The company is exploring new distribution channels, including mini-programs on platforms like Douyin, to enhance game accessibility [10]