According to the Zhitong Finance App, Xindong (02400) announced its annual results for the year ended December 31, 2023, with revenue of approximately RMB 3.389 billion (RMB, same below) and gross profit of RMB 2,068 billion, up 12.7% year on year; loss attributable to the company's equity holders was RMB 83.09 million, down 85% year on year; adjusted loss was 9.406 million yuan, down 98.1% year on year.
The announcement said that in 2023, along with the withdrawal of restrictive measures due to the epidemic, the challenges faced by the company's business and company colleagues changed from working from home and restrictions on travel to the pressure of users reducing the time users spend playing games and increasing the company's costs and efficiency. Faced with the problem, colleagues at the company made great efforts and sacrifices. Although individual businesses were under pressure, overall, the company's revenue remained stable, gross profit increased, expenses were reduced, and it successfully turned losses into profits under the adjusted profit margin before interest, tax, depreciation and amortization. The company's profit before adjusted interest, tax, depreciation and amortization in 2023 was $158 million, compared to a loss of $353 million in 2022.
In terms of game business, the company completed the launch of “Torchlight: Infinite” (Torchlight: Infinite) and “T3Arena” (T3Arena) games in the Chinese market in 2023, and the launch of “Swordof Convallaria” (Swordof Convallaria) in the Hong Kong, Macao and Taiwan markets, and further completed the launch of “Go GoMuffin” (Go GoMuffin) in the Hong Kong, Macao and Taiwan markets in January 2024. Although revenue from the company's flagship game “SausageMan” (SausageMan) declined in 2023, the launch of these newly developed games provides potential for future game revenue growth. In terms of the TapTap platform business, although the average monthly active users of the TapTap China app decreased compared to 2022, the company believes this is mainly affected by one-time factors, and after some adjustments, the current monthly active users have returned to the growth trend. In 2023, the company initially applied AIGC (Artificial Intelligence Production Content) technology to the company's game development and platform user services, and had good results. In the future, the company plans to further use this technology to improve content production efficiency and user service capabilities. In the long run, the company will continue to adhere to the vision of “gathering craftsmanship and moving players”, and is committed to continuously bringing high-quality games to players around the world, and continuing to support developers to create and distribute games more conveniently.