Giant Network Group (002558.SZ) releases its 2023 annual report, fully embracing the AI wave.

On April 29, Giant Network Group (002558.SZ) released its annual report for 2023 and its first quarter report for 2024. The reports show that in 2023, the company achieved operating income of 2.924 billion yuan, a year-on-year increase of 43.50%, and a net profit attributable to shareholders of the listed company of 1.086 billion yuan, a 27.67% increase year-on-year; achieve a net profit of 1.373 billion yuan attributable to shareholders of the listed company after deducting non-recurring gains and losses, an increase of 34.84% year-on-year. The company is fully embracing the AI wave and building AI productivity. New games performed well online, while mature game products maintained stable operations. In the first quarter of 2024, the company achieved operating income of 696 million yuan, a year-on-year increase of 37.21%, a net profit attributable to shareholders of the listed company of 352 million yuan, an increase of 43.97% year-on-year, and a net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses of 405 million yuan, an increase of 54.42% year-on-year. The flagship new game "Primitive Expedition" drove user growth, and the layout of the Expedition IP mini-program began to show initial results. During the reporting period, the new flagship mobile game "Primitive Expedition" under the Expedition IP went online and was successful. The product, produced by the company's chairman, Shi Yuzhu, took three years to develop, featuring "authentic Expedition gameplay" and "a server with one hundred thousand players." After going online, it exceeded 300 million in revenue in the first month, with annual revenue exceeding 1.5 billion and accumulating over 15 million new users. Entering 2024, "Primitive Expedition" continues to rapidly develop and iterate, with a new version centered around the new gameplay "World Battle" expected to be launched in the first half of the year, boosting revenue. For mature operating products, the company continues to adhere to the principle of creating an Expedition that is "fun to play, good to play, durable to play," with several products in the series simultaneously exerting effort, releasing large expansion packs each quarter based on player demands, maintaining a stable trend in user numbers and revenue throughout the year. During the reporting period, the mini-games under the Expedition lineup were initially completed. Among them, the mini-game "King Expedition" was tested at the end of the reporting period and gradually increased its marketing efforts since February 2024, steadily climbing in rankings and revenue; the mini-game "Primitive Expedition" has been optimized and is expected to be a focus in mid-2024; and the mini-games of other Expedition IP mobile games like "Expedition 2" were also completed. The flagship product "Paper Fight" has stabilized and rebounded, solidifying the advantage in the new mobile game category. During the reporting period, the company's casual competitive "Paper Fight" product saw a rejuvenation, with the product team completely innovating the user experience, continuously introducing innovative gameplay, and increasing user stickiness. Starting from the second half of the year, the product's DAU significantly rebounded, achieving five consecutive months of revenue growth, with active ARPU and payment rates reaching a historical high, and its iOS bestseller ranking reaching nearly a 3-year high. In 2024, "Paper Fight" continued to maintain good growth momentum.