XD (2400) H1 2024 earnings summary

Executive summary

• Revenue rose 26.7% year-over-year to RMB2,220.6 million for the six months ended June 30, 2024, driven by new self-developed game launches and cost control measures.

• Gross profit increased 44.3% year-over-year to RMB1,496.8 million, with gross margin improving to 67.4%.

• Adjusted EBITDA reached RMB319.3 million, up 72.7% year-over-year, reflecting operational efficiency.

• Profit for the period was RMB250.6 million, up 143.8% year-over-year; adjusted profit was RMB278.8 million, up 115.1%.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: RMB2,220.6 million (+26.7% YoY); gross profit: RMB1,496.8 million (+44.3% YoY).

• Profit attributable to equity holders: RMB205.1 million (+127.4% YoY); adjusted profit: RMB237.3 million (+110.0% YoY).

• Gross margin improved to 67.4% from 59.2% YoY.

• Selling and marketing expenses rose 110.4% to RMB695.3 million, mainly due to new game launches.

• Cash and short-term investments totaled RMB2,281.7 million as of June 30, 2024.

Outlook and guidance

• Continued focus on high-quality self-developed games and platform growth.

• Expansion of GoGo Muffin and Heartopia into overseas markets planned for H2 2024.

• TapTap to enhance user experience and long-term growth through AI and marketing strategies.