XD Inc. 2024 Annual Report

Key insights

7 takeaways

01
XD Inc. achieved a significant financial turnaround in 2024, moving from a net loss of RMB 65.4 million in 2023 to a net profit of RMB 890.5 million.See it on page 17
02
Total annual revenue exceeded RMB 5 billion, driven by the global performance of self-developed titles including GoGo Muffin, Sword of Convallaria, and Heartopia.See it on page 12
03
The TapTap platform grew its monthly active users by 23%, supported by AI-driven content promotion and exclusive game offerings.See it on page 11
04
Operational efficiency improved substantially as the game segment's gross margin rose from 47% to 63% during the year.See it on page 14
05
The company strengthened its balance sheet by eliminating all outstanding convertible bond liabilities and maintaining a cash position of RMB 2.78 billion.See it on page 166
06
XD Inc. recommended a final dividend of HK$0.4 per share, signaling a commitment to shareholder returns following the year's financial recovery.See it on page 167
07
The company maintains a workforce of 1,400 employees and reported zero violations in data privacy or advertising regulations throughout 2024.See it on page 54

Summary

XD Inc.’s 2024 annual report details a period of significant financial recovery and operational expansion for the company. The primary thesis of the report centers on the successful transition from a net loss of RMB 65.4 million in 2023 to a net profit of RMB 890.5 million in 2024. This turnaround was underpinned by total annual revenue exceeding RMB 5 billion, representing a substantial increase driven by the global performance of self-developed titles such as GoGo Muffin, Sword of Convallaria, and Heartopia. Simultaneously, the TapTap platform experienced a 23% growth in monthly active users, bolstered by AI-driven content promotion and exclusive offerings.

The company’s financial health improved markedly throughout the year, characterized by a strengthened balance sheet and the elimination of all outstanding convertible bond liabilities. Operational efficiency was a key focus, with gross margins in the game segment rising from 47% to 63%. To maintain this momentum, the company has prioritized cross-platform development, the integration of generative AI into game creation, and the expansion of its existing intellectual property. Furthermore, the company demonstrated its commitment to shareholder value by recommending a final dividend of HK$0.4 per share and maintaining a robust cash position of RMB 2.78 billion.

Corporate governance and sustainability remain central to the company’s long-term strategy. XD Inc. operates under a structured framework involving specialized board committees and a five-tier environmental, social, and governance (ESG) system. The company maintains a strong focus on risk management, information security, and minor protection, reporting zero violations in data privacy or advertising regulations. With a workforce of 1,400 employees, the company continues to invest in talent retention through competitive compensation and share-based incentive schemes, while adhering to rigorous internal compliance and ethical standards across its global operations.