The adjusted EBITDA of Chizicheng Technology (09911) in 2024 was about 963 million yuan, an increase of 42.8% over the previous year, and the total volume of the boutique game business increased by 80.4%

According to the Zhitong Finance App, Chizicheng Technology (09911) announced 2024 results. Customer contract revenue was about 5.09 billion yuan, an increase of 53.9% over the previous year. Gross profit was approximately $2,608 million, an increase of 51.4% year over year. The profit for the year was approximately 788 million yuan, an increase of 3.6% over the previous year. The adjusted EBITDA was approximately $963 million, an increase of 42.8% over the previous year.

Among them, the company's social business continued to grow rapidly, with revenue reaching 4.63 billion yuan, an increase of 58.1% over the previous year, mainly because the Group improved user experience and user stickiness through continuous improvement of refined operation capabilities and product capabilities. The pan-crowd social business product matrix became increasingly clear and revenue achieved further growth; in August 2023, the company completed the acquisition of Chizicheng Strategy Investment Limited and began merging Blue City Brothers Holdings Co., Ltd. and Land of Glory Ltd. ...'s revenue lays out social networking services for diverse groups of people, and actively expands the global market; the Group uses AI technology to iteratively match algorithms and business strategies to effectively improve social efficiency and product monetization efficiency, thereby driving the continuous growth of business revenue.

Revenue from the innovative business reached 460 million yuan, an increase of 21.3% over the previous year, mainly due to the continuous development of the social e-commerce business that the Group has actively invested in and expanded, and quality games developed by the Group have begun to contribute revenue.

In 2024, the company's “multiple matrix” product strategy continues to bear fruit, and the long-term value of latecomer products continues to show. This year, SUGO's revenue increased by more than 200% year on year, and the average monthly turnover has exceeded 10 million US dollars, making it the company's second product with monthly turnover of 10 million US dollars; TopTop also achieved explosive growth, with annual revenue growth of more than 100% year over year. At the same time, MICO and YoHo products continued to grow steadily in the core market, contributing steadily to the company's revenue and profits.

In 2024, the boutique game business continued to achieve significant breakthroughs, with total annual turnover reaching RMB 705 million, a year-on-year increase of 80.4%. The flagship game Alice's Dream: Merge Games's annual turnover increased by more than 60% year over year, and has successively entered the Sensor Tower China mobile game's top 30 overseas revenue list. At the same time, the boutique game business also makes extensive use of AI technology to enable sectors such as R&D, art, and advertising, significantly reducing costs and increasing efficiency.

The announcement stated that the increase in performance was mainly due to the continuous evolution of the company's capabilities. As the company continues to expand in the global market, we have established solid localization barriers in the Middle East, North Africa, Southeast Asia and other markets. At the same time, we are continuously building awareness and verifying practices in product innovation, ecological operation, and customer acquisition growth to support continuous business innovation and development with more comprehensive underlying capabilities, and promote the continuous improvement of the company's commercialization capabilities.

The company also continues to explore effective ways to drive business growth with new technologies, especially artificial intelligence technology. In 2024, the company further invested in AI research and application, introduced the latest technological achievements in the industry, supported the company's AI engine, enabled the entire business process of product development, operation and promotion, effectively improving user experience, product development efficiency, operational decision-making efficiency, risk control and audit efficiency, advertising efficiency, etc., and also brought better commercialization results to the company.