On February 29th, Chinese concept stock Hongen announced its financial performance for the fourth quarter and full year of 2023. According to performance disclosure, the operating revenue in the fourth quarter was RMB 250 million, with a net profit of RMB 33.3 million. The total operating revenue for the year 2023 was RMB 1.018 billion, with a net profit of RMB 181 million. The company will distribute a special cash dividend of $0.02 per ordinary share or $0.10 per American depositary stock.
Performance shows that Hongen continued its excellent performance in the fourth quarter, achieving eight consecutive quarters of profitability. A solid customer base has become an indispensable driving force to support Hong En's long-term development. During the quarter, the average monthly active user count (MAU) of Hongen significantly increased to 25.38 million, reaching a new historical high, an increase of 14.2% compared to last year. The outstanding performance demonstrates the resilience of Hongen's business model and the efficient execution ability of the team, further consolidating Hongen's leading position in the industry.
Hong En recently announced the acquisition of the IP assets related to "Space Guard" by Kunpeng, an animation production company under Perfect World Group. It is expected that this acquisition will have a significant synergistic effect with the company's existing business. While promoting strategic measures, Hongen is also continuously improving its existing product lineup. On the one hand, Hongen continues to optimize the content and functions of its app products to enhance users' online experience. At the same time, further progress has been made in the integration of online and offline products, thereby creating a more immersive and comprehensive user experience. In addition, Hongen has also launched graded reading picture book physical books and an intelligent point reading pen specifically developed for them, which complement the English graded reading app product "Hongen English Treasure". This combination not only allows children to read interesting original English stories that match their language proficiency on both paper and digital platforms, but also provides them with flexible and easy reading methods, enhancing their understanding and participation in the content.