XD (2400) H2 2024 earnings summary

Executive summary

• Achieved record annual revenue of RMB5.0 billion, up nearly 50% year-over-year, surpassing RMB5 billion for the first time.

• Returned to profitability with net profit attributable to equity holders of RMB811.5 million, compared to a net loss of RMB83.0 million last year.

• Significant growth in both self-developed games and TapTap platform operations, with new titles driving revenue.

• TapTap PRC average monthly active users (MAU) reached 44.0 million, up 23% year-over-year.

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

Financial highlights

• Total revenue: RMB5,012.1 million, up from RMB3,389.1 million in 2023.

• Gross profit: RMB3,478.5 million, gross margin improved to 69.4% from 61.0% last year.

• Net profit: RMB890.5 million (2023: net loss of RMB65.4 million).

• Adjusted EBITDA: RMB1,056.4 million, up from RMB158.4 million in 2023.

• Game segment revenue grew 64.2% year-over-year to RMB3,434.1 million; online games revenue up 69.1% to RMB3,316.8 million.

• TapTap platform revenue increased 21.6% to RMB1,578.0 million.

• Cost of revenue increased 16.1% to RMB1,534.0 million; selling and marketing expenses rose 61.5% to RMB1,397.3 million.

Outlook and guidance

• Continued investment in flagship titles such as Heartopia and Ragnarok M: Eternal Love II, with expectations for further growth.

• TapTap to focus on PC platform expansion and enhanced AI-driven promotion capabilities.

• Ongoing commitment to leveraging AI for game development and platform services.

• No material plans for significant capital investments or acquisitions beyond recent transactions.