2025-03-27-上交所-G-bits_Network_Technology_Xiamen_Co.,_Ltd._2024_Annual_Report_Summary_45页_1mb

G-bits Network Technology Annual Report Summary (2024)

Part I Important Notes

• Report Coverage: Summary extracted from full annual report. Full report available on SSE website for detailed review.
• Guarantees: Board, supervisors, and management ensure the truthfulness, accuracy, and completeness of the report.
• Auditor Opinion: Unqualified audit opinion from KPMG Huazhen LLP.
• Dividend Policy: Proposed cash dividend of RMB 35.00 per 10 shares (excluding repurchased shares), totaling RMB 717.56 million for 2024, covering 75.94% of net profit attributable to shareholders.

Part II Basic Information

Stock and Contact Details

• Stock Code: 603444
• Stock Name: G-bits
• Listing Exchange: Shanghai Stock Exchange (A-shares)
• Board Secretary: LIANG Lili
• Office Address: G-bits Building, No.4 Wang Hai Road, Xiamen Software Park II
• Email: ir@g-bits.com

Key Financial Data (2022–2024)

• Total Assets: RMB 6.92 billion (YoY +4.32%)
• Equity Attributable to Shareholders: RMB 4.90 billion (YoY +9.82%)
• Operating Revenue: RMB 3.69 billion (-11.69% YoY)
• Net Profit Attributable to Shareholders: RMB 944.92 million (-16.02% YoY)
• Adjusted Net Profit (Excluding Non-Core Items): YoY declined significantly, reflecting investment and property impairment impacts.
• Cash Flow from Operations: RMB 1.25 billion (+5.33% YoY)

Part III Management Discussion and Analysis

I. Business Operations

• Core Business: Development and operation of online games.
• Products:
  • Asktao (PC/Mobile): Long-running MMORPG titles.
  • Overmortal: Idle cultivation game with ink-wash style art.
  • Immortal Sword: 3D idle cultivation game (launched Jan 2025).
• Revenue Decline: Overall revenue decreased by 11.69% YoY, driven by declining titles (e.g., Asktao Mobile, Overmortal).
• Overseas Growth: Overseas revenue surged 83.92% YoY to RMB 499.79 million, driven by Dragon POW! and other titles.

II. Core Competencies

• R&D Investment: R&D expenses of RMB 757.63 million (20.50% of revenue).
• MVP Development Approach: Rapid prototyping and iterative user feedback to enhance product direction.
• Centralized R&D Platform: Supports cross-functional development across tech, art, and monetization.
• AI Integration: Platform AIWebHub optimized for game art development in 2024.

III. Investment Activities

• Equity Investments: Holdings in companies like TapTap, Qingci Games, and Unity China.
• R&D Focus: Prioritize high-density talent projects with three phases: profitable, breakeven, and exploratory.

Part IV Financial Highlights (2024 vs. 2023)

Metric	2024	2023	YoY Change
Operating Revenue	RMB 3.69B	RMB 4.18B	-11.69%
Net Profit Attributable	RMB 0.94B	RMB 1.13B	-16.02%
R&D Expense	RMB 0.76B	RMB 0.68B	+11.53%
Cash Flow from Ops	RMB 1.25B	RMB 1.19B	+5.33%
Overseas Revenue	RMB 0.50B	N/A	+83.92%

Part V Risk and Governance

• Regulatory Compliance: High emphasis on minor protection, cultural values, and data security.
• R&D Complexity: MVP approach increases project complexity.
• Dividend Sustainability: YoY profit decline poses challenges for dividend coverage.

Investment Outlook

• Growth Catalysts: Overseas expansion, new game launches (e.g., Immortal Sword).
• Risks: Revenue concentration from mature titles, rising traffic acquisition costs.

Contact

• Name: LU Hongyan (Legal Representative)