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Hongen's net profit increased by 64.75% in 2023 through strategic acquisitions, enhancing synergies

因醉鞭名马幌
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On February 29th, technology puzzle product company Hongen announced its full year financial performance for 2023. In 2023, the company's operating revenue was 1.0181 billion yuan, and its net profit reached 180.9 million yuan.
According to performance data, Hongen's revenue and average monthly active users in 2023 have both increased compared to 2022. The company has achieved profitability for eight consecutive quarters, with a year-on-year increase of 64.75% in net profit for the year. The average monthly active user count (MAU) in the fourth quarter reached a historic high of 25.38 million, a year-on-year increase of 14.2%.
Hong En Director and CEO Dai Peng said, "Over the past year, we have achieved steady revenue growth and sustained profitability, and once again reached a new high in average monthly active users in the fourth quarter, further consolidating our industry-leading position."
Hong En Director and Chief Financial Officer Wang Weiwei added, "We are proud to announce that the company has achieved profitability for the eighth consecutive quarter, with a net profit of 180.9 million yuan for the whole year. This marks the second consecutive year of profitability for Hong En since its listing in 2020, and also indicates that we have successfully opened up a path of healthy and sustainable development."
Hongen always insists on strengthening internal skills and continuously improving its product lineup. On the one hand, the company continues to optimize the content and functions of its App products, improving the online experience for users. At the same time, further progress has been made in the integration of online and offline products.
Dai Peng also stated, "We are pleased to announce the acquisition of the IP assets related to" Cosmic Guardians "by Kunpeng, an animation production company under Perfect World Group. This strategic acquisition is expected to have significant synergies with our business. Firstly," Cosmic Guardians "is a popular adventure animated series with a wide impact in the children's entertainment market.". Prior to this acquisition, the IP had already been used in some of our products. After the acquisition, we will have greater autonomy in creative content. In addition, we can develop more products and derivatives based on this IP, such as animations, toys, etc., to further expand our product matrix
Wang Weiwei summarized, "With the continuous development of our business, our financial situation has also been further consolidated, providing strong support for our continuous development and innovation, and also enabling us to further give back to shareholders by distributing special cash dividends of $0.02 per ordinary share or $0.10 per American depositary stock.". The board's approval of this special dividend reflects confidence in our long-term growth potential and strong balance sheet. Looking ahead, we will continue to advance our strategic priorities, adhere to a growth oriented approach, and strive to create greater value for our users and shareholders
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