游戏业务：《出发吧麦芬》等新游亮眼表现推动收入增长和利润率显著提升? 1）《出发吧麦芬》分别于1 月和5 月在中国港澳台及大陆地区上线，大陆版Q2 平均排名位居畅销榜Top10，港台地区亦有持续亮眼表现，大陆版目前仍稳居畅销榜Top40。此外23Q4 上线的《铃兰之剑》贡献部分增量，由于MAU 和MPU 的下降，《香肠派对》等部分存量游戏流水有所下滑；2）由于上述原因，24H1 公司游戏收入同比+29.3%至14.9 亿，较23H2 环比+57.8%；24H1 平均月付费玩家数量同比-21.4%/环比-10.9%至109.2 万，付费玩家占比同环比小幅提升1pct 至11.5%；3）由于相对低毛利的代理产品《香肠派对》流水下滑，《出发吧麦芬》等亮眼表现带动自研游戏收入占比提升，24H1 游戏业务毛利率同比+12.7pct/环比+14.0pct 至59.9%。Description of the event
Xindong Company disclosed its 2024 semi-annual results. 24H1 achieved revenue of 2.221 billion yuan (YoY +26.7%), net profit to mother 0.205 billion (+127.4% YoY), and adjusted net profit of 0.237 billion yuan (YoY +110.0%).
Incident comments
Game business: Did the outstanding performance of new games such as “Let's Go Muffin” drive revenue growth and a significant increase in profit margins? 1) “Let's Go Muffin” was launched in Hong Kong, Macao, Taiwan and mainland China in January and May, respectively. The mainland version ranked in the top 10 bestsellers on average in Q2. The Hong Kong and Taiwan regions also continued to perform well. The mainland version is still in the top 40 bestsellers. In addition, “Sword of the Suzuran” launched on 23Q4 contributed part of the increase. Due to the decline in MAU and MPU, sales of some existing games such as “Sausage Party” declined; 2) Due to the above reasons, 24H1's game revenue was +29.3% to 1.49 billion, +57.8% month-on-month compared to 23H2; 24H1 average number of monthly paying players was -21.4% YoY /10.9% to 1.092, and the share of paying players increased slightly by 1pct to 11.5% over the same period; 3) Due to the above reasons, the share of paying players increased slightly by 1pct to 11.5% over the same period; 3) Due to the above reasons, the share of paying players increased slightly by 1pct to 11.5% over the same period; 3) Due to the above reasons, due to the above reasons, the share of paying players increased slightly by 1 pct to 11.5% over the same period; 3) Due to the above reasons, due to the above reasons, the share of paying players increased slightly by 1 pct to 11.5% over Sales of the agency product “Sausage Party”, which has a relatively low gross profit, declined, and outstanding performances such as “Let's Go Muffin” led to an increase in the share of revenue from self-developed games. The gross margin of the 24H1 game business was +12.7 pct/month over month +14.0 pct to 59.9%.
TapTap: Benefiting from the popularity of self-developed games and the recovery in demand for game delivery, users have returned to growth, and commercial potential continues to be unleashed? 1) Although 24H1 reduced the ad-load on TapTap to improve the user experience, it benefited from the high supply of new games and game launch demand in the first half of the year, and the revenue of the 24H1 Tap China edition increased. TapTap's 24H1 revenue +21.7% YoY to 0.734 billion; 2) TapTap's MAU in China in the first half of 2024 was +27.3% YoY/+14.8% month-on-month to 43.24 million as the company implemented several strategy adjustments to TapTap in China, compounded by the increase in popular 24H1 domestic games, the launch of new self-developed games such as “Let's Go Muffin”, and new marketing and promotion strategies. Due to the impact of individual games and the company's reduction in overseas marketing investment, TapTap's international MAU was -29.0% YoY/+14.2% month-on-month to 5.07 million.
The launch led to an increase in expenses, and the increase in gross margin led to a significant improvement in net profit margin: 24H1 marketing expenses were +110.4%/+30.0% month-on-month to 0.695 billion, and the sales expenses ratio was +12.5pct/month-on-month -1.4pct to 31.3%; as of 2024.6.30, the company's R&D personnel dropped to 997 (1143/1031 at the end of the 23H1 period and the end of 23, respectively). Benefiting from the launch of new self-developed tours one after another, 24H1's overall gross margin was +8.2pct/month-on-month +4.4pct to 67.4%. The adjusted net interest rate for 24H1 was 10.7%, a significant increase from 6.4% for 23H1 and -9.0% for 23H2.
Self-research strength and community commercial value continue to be verified. Follow the new game and TapTap's subsequent performance: In addition to “Let's Go Muffin”, “Heartfelt Town”, which was launched on 7.17, continued to rank in the top 10 free lists. Its Tap download surpassed 2,800w, and the bestseller list also stabilized at the top 50. Various new games continued to verify self-development capabilities. “Let's Go Muffin” is expected to launch 24H2 in many overseas countries and regions; “Sword of the Suzuran” will be launched overseas in August; in addition, there are reserves such as “Ether Restart Day”, a key self-developed project. Benefiting from the centralized launch of new summer programs and the “Heartbeat Town” drive, TapTap's active users and commercialization are also expected to continue to perform well in the second half of the year.
Risk warning
1. Risk that product version approval, launch progress, sales performance, and user growth fall short of expectations; 2. Industry regulatory risks; 3. Competition in the game industry exacerbates risks; 4. The commercialization progress of TapTap falls short of the expected risk.
