Chizicheng Technology (09911) announced that as of March 31, 2024, the cumulative number of downloads of the group's social networking business reached about 650 million, up about 5.9% from December 31, 2023. In the first quarter of 2024, the average monthly activity of the Group's social networking business reached about 285.48 million yuan, an increase of about 2.6% over the previous month; the total revenue from the social business is expected to reach about RMB 980 million to RMB 1.01 billion, an increase of about 65.8% to 70.9% over the same period in 2023.
According to the announcement, the Group's social networking business saw a sharp year-on-year increase in revenue in the first quarter of 2024, mainly due to the merger of Metaclass Management ELP's financial statements and the financial statements of the companies it owns into the Group's consolidated financial statements in the third quarter of 2023, and the rapid growth of the Group's newly launched social networking products in markets such as the Middle East and North Africa.
Furthermore, in the first quarter of 2024, the total revenue of the Group's innovation business is expected to be approximately RMB 62 million to RMB 72 million, an increase of about 3.3% to 20.0% over the same period in 2023, mainly due to the smooth development of the Group's boutique game business.