37 Interactive Entertainment Network Technology Group (002555) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥9.23 billion, up 18.96% year-over-year, driven by strong mobile game performance.

• Net profit attributable to shareholders was ¥1.26 billion, a 3.15% increase year-over-year.

• Adjusted net profit (excluding non-recurring items) rose 14.27% to ¥1.27 billion year-over-year.

• Mobile games contributed 97% of total revenue, with overseas revenue at ¥2.90 billion, 31.39% of total.

• Cash dividend of ¥2.10 per 10 shares proposed, with total cash payout of ¥465.75 million.

Financial highlights

• Gross margin was 79.63%, up 1.08 percentage points year-over-year.

• Operating cash flow was ¥2.13 billion, down 8.22% year-over-year.

• Total assets at period end were ¥19.33 billion, up 1.03% from year-end 2023.

• Basic and diluted EPS were both ¥0.57, up 3.64% year-over-year.

• R&D investment was ¥350.78 million, down 9.66% year-over-year due to strategic focus shift.

Outlook and guidance

• Company continues to focus on "premium, diversified, global" strategy, strengthening R&D and overseas expansion.

• Ongoing investment in AI and digitalization to enhance product pipeline and operational efficiency.

• Dividend policy remains stable, with up to ¥5 billion cash dividend per quarter, not exceeding ¥15 billion for 2024.