XD (2400) H2 2024 earnings summary

Executive summary

• Revenue grew 47.9% year-over-year to RMB5,012.1 million, driven by strong performance in newly launched self-developed games and growth in the TapTap platform.

• Net profit reached RMB890.5 million, reversing a net loss of RMB65.4 million in the prior year.

• Adjusted profit for the year was RMB956.7 million, excluding fair value changes and share-based compensation.

• Board recommended a final dividend of HK$0.4 per share for 2024.

Financial highlights

• Gross profit increased by 68.2% year-over-year to RMB3,478.5 million; gross margin improved to 69.4%.

• EBITDA rose to RMB997.2 million from RMB107.0 million; adjusted EBITDA was RMB1,056.4 million.

• Basic EPS was RMB1.71, compared to a loss per share of RMB0.18 last year.

• Cash and short-term investments totaled RMB2,910.2 million at year-end.

Outlook and guidance

• Focus remains on launching high-quality games and expanding the TapTap platform domestically and internationally.

• Plans to introduce new premium mobile games and further invest in AI and machine learning for operational efficiency.