37 Interactive Entertainment Network Technology Group (002555) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥17.44 billion in 2024, up 5.40% year-over-year; net profit attributable to shareholders was ¥2.67 billion, up 0.54% year-over-year.

• Maintained strong domestic and overseas market positions, with overseas revenue of ¥5.72 billion, representing 32.81% of total revenue.

• Continued to invest in R&D and AI, with significant product launches and a robust pipeline for 2025.

• Distributed cash dividends four times in the year, totaling ¥2.2 billion.

Financial highlights

• Revenue: ¥17.44 billion (+5.40% YoY); net profit attributable to shareholders: ¥2.67 billion (+0.54% YoY).

• Gross margin for mobile games was 79.96%; overall gross margin was 79.10%.

• Operating cash flow: ¥2.99 billion (-4.74% YoY); total assets: ¥19.58 billion (+2.34% YoY).

• Basic and diluted EPS: ¥1.21; ROE: 20.58%.

• R&D expenses: ¥646 million, 3.71% of revenue.

Outlook and guidance

• Will continue to pursue a strategy of “premiumization, diversification, globalization,” with a focus on R&D and AI integration.

• Plans to accelerate overseas expansion and deepen the integration of Chinese culture into games.

• Ongoing investment in talent and technology to maintain competitive advantage.