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BEIJING, March 5, 2024 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), a Nevada corporation engaged in innovative business segments for Acoustics Intelligence and 5G-AI multimodal communication technology in China and the US, issued guidance today for expecting a revenue of approximately $86.0 million for the Company's full year ended June 30, 2024. This represents approximately a 1,128% increase from revenue of $7.0 million which was reported for fiscal year ended June 30, 2023. Datasea's CEO Zhixin Liu commented, "Our guidance of approximately $86.0 million in revenue is due to projected strong results from both of our business segments. We believe that we have taken steps to deepen our distribution channels which will be positive for our financial results. In addition, we are beginning to see excellent progress in the domestic sales and in penetrating the US market with our Acoustics Intelligence products as we are gradually witnessing remarkable advancements in sales both in the United States and China." "Our two business segments are supported by core technologies that we believe confer a competitive advantage in their respective market segments. Further, a key attribute of our technological innovation is the use of AI-driven interactions which we believe is becoming increasingly sustainable. Our operating model encompasses distinct customer bases and sources of revenue which we believe will create long-term value for our shareholders." Datasea's Acoustics Intelligence Segment Datasea is a global initiator, promoter and practitioner of acoustic intelligence, and one of the pioneers in introducing the global concept of "acoustic effects." We are committed to advancing non-visual intelligent algorithms, ultrasonic technology, precision manufacturing, and directional sound in various fields including the acoustics industry, acoustics agriculture, acoustics medical aesthetics, acoustics medical health, and acoustics IoT. Our acoustic effects are derived by reverse engineering sound characteristics and developing processing mechanisms from the perspective of the impact of sound on people and objects. Our commitment to technological advancement and global reach positions us at the forefront of delivering cutting-edge Acoustics Intelligence solutions that focuses on ultrasound, infrasound, directional sound and Schumann resonance technology to meet the evolving needs of our customers and communities worldwide. The Company's products are currently being sold in China, and the Datasea plans to introduce its cutting-edge antivirus acoustic solutions, including acoustic sterilizers, acoustic odor removal products, acoustic sleep aid, and acoustic dehumidification products to the US market through its wholly-owned subsidiary, Datasea Acoustics LLC, based in Delaware. Datasea leverages cutting-edge technologies and precision manufacturing in the field of sound disinfection and health care that harnesses the power of ultrasonic sterilization to combat viruses and prevent human infections. This technology capitalizes on the mechanical, thermal, and cavitation effects of ultrasound. When stimulated by ultrasound, microorganisms, including the coronavirus, undergo significant vibration strains that disrupt the virus's outer shell and internal RNA. The rapid movement of protons attributable to ultrasound eventually devastates microbial structures, annihilating harmful pathogens. Datasea's AI-Based 5G Multimodal Communications Segment Datasea 5G-AI multimodal communication technology deeply integrates self-developed 5G with AI, core algorithms and other technologies, providing rich functions for various application scenarios. The Company's technology encompasses AI digital marketing functions, AI short video matrix functions and smart AI agricultural e-commerce and other core features. Datasea 5G-AI multi-modal communication technology features an optimal use of 5G, artificial intelligence and natural language processing (NLP) combined with its proprietary core algorithm capabilities, cloud and edge computing, big data analysis, cloud security and other multimodal capabilities. Utilizing the high speed and low latency characteristics of 5G network, Datasea's 5G-AI multi-modal communication technology realizes a fast upload, downloads and streaming of short videos. It can also ensure real-time interactivity and a rapid response speed for digital marketing and smart digital agriculture e-commerce platforms. Datasea serves more than 48 million enterprises and individual users in China with digital and intelligent services utilizing its AI, machine learning and data analytic capabilities that result in an array of 5G-AI multi-modal communication products and solutions. About Datasea Inc. Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in innovative industries, Acoustics Intelligence and 5G-AI multimodal communication, especially focusing on ultrasonic, infrasound and directional sound technology. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal communication segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing in Acoustics Intelligence, utilizing ultrasonic sterilization to combat viruses and prevent human infections, and is also developing innovations in directional sound and medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to mark its global presence. This underlies Datasea's commitment to Acoustics Intelligence and its intent to offer leading edge acoustic solutions to the U.S. market. For additional information, please visit: www.dataseainc.com. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. Investor and Media Contact: Datasea Investor RelationsEmail: investorrelations@shuhaixinxi.com sunhezhi@shuhaixinxi.com Precept Investor Relations LLCDavid Rudnick+1 646-694-8538david.rudnick@preceptir.com
Nature Wood Group Limited Expects 75% Revenue Growth in 2024 MACAU, March 4, 2024 /PRNewswire/ -- Nature Wood Group Limited ("Nature Wood" or the "Company"), one of global leaders in vertically-integrated forestry and FSC business operations, is pleased to announce its guidance for the fiscal year 2024. The company expects to achieve a significant increase in revenue, reaching $45 million, compared to the recently preannounced revenue of $25.4 million for 2023. The rebound in sales is primarily driven by new regulations in the European Union, which mandates a higher percentage of wood to be used in building homes and requires the wood to be sustainably sourced. As a company with a strong focus on Forest Stewardship Council (FSC) certified operations, Nature Wood is well-positioned to capitalize on these regulatory changes and meet the growing demand for sustainable wood products. "We are excited to see the positive impact of the new EU regulations on our business," said Mr. Jianjun Zeng, the chief executive officer of Nature Wood. "Our commitment to sustainable forestry practices and FSC certification has given us a competitive advantage in the market, and we are confident that we can continue to deliver high-quality, eco-friendly products to our customers." Nature Wood will provide further details on its 2024 guidance as and when appropriate. The company remains dedicated to its mission of providing environmentally responsible wood products while maintaining strong financial performance. Nature Wood is also expanding its carbon credit projects to other regions of the world, presenting a large market opportunity with high margins while contributing to global sustainability efforts. The Company anticipates to update shareholders in the near future on progress in this exciting area. About Nature Wood Group Limited Nature Wood Group Limited is a global leading vertically-integrated forestry company that focuses on FSC business operations, timber and wood products industry. The Company's operations cover both up-stream forest management and harvesting, and down-stream wood-processing and distribution. Nature Wood offers a broad line of products, including logs, decking, flooring, sawn timber, recycled charcoal, synthesized charcoal, machine-made charcoal and essential oils, primarily through its sales network in Europe, South Asia, South America, North America and China. The Company is one of the largest exporters of wood products in Peru, with approximately 615,333 hectares of forest concessions as of June 30, 2023. In terms of the export value in 2021, the Company is (i) the second largest wood products export supplier; (ii) the second largest wood products export supplier certified by the FSC; and (iii) the largest decking product supplier, in Peru. Nature Wood is also the largest oak export supplier and the second largest hardwood export supplier, in France in terms of export volume in 2021. For more information, please visit: www.nature-wood.com. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: Michael WeiHorizon Research Management ConsultancyEmail: hwey@horizonconsultancy.co
SHANGHAI, March 4, 2024 /PRNewswire/ -- Henlius (2696.HK) released a positive profit forecast. Based on the preliminary assessment of the unaudited consolidated management accounts for the year ended 31 December, 2023 (the "Reporting Period") and the information currently available to the Board, it is expected that the company will record a profit for the year of no less than RMB500 million for the Reporting Period. This is the first time for Henlius to achieve full-year profits following the company's achievement of its first half-year profits for the six months ended 30 June 2023. The full year of profitability is primarily contributed by the continuous growth in sales revenue of the company's core products HANQUYOU and HANSIZHUANG, as well as cost reduction and efficiency improvement through refined management. Wenjie Zhang, Chairman and Executive Director of Henlius, said: "2023 is a milestone as we reported a full-year profit for the first time. Benefiting from the efficient synergy and cumulative effects of an integrated industrial chain of R&D, manufacturing, and commercialization, the company has improved its decision-making efficiency and speed-to-market, achieving a leapfrog development. Looking ahead, we will continue to improve quality, make new breakthroughs in our journey of quality development, and reach out toward new horizons." Jason Zhu, Executive Director, Chief Executive Officer and Chief Financial Officer, said: "Henlius has always been guided by clinical needs and adheres to an innovation-driven development strategy. We maintain strategic focus and strengthen our own differentiated advantages under challenging circumstances, achieving milestone breakthroughs in various areas, and driving a rapid growth. Standing at a new starting point for development, we will draw a new blueprint for growth and collaborate with partners along the industry chain to benefit more patients." Hitting a record high by efficient and seamless collaboration In 2023, Henlius further enhanced its self-sufficiency capabilities. Leveraging a forward-looking commercial layout and efficient market expansion, the company continuously advanced its product commercialization, improving product accessibility to maximize patient benefit. The competitiveness of the company's two core products has continued to improve both domestically and internationally, which drives the revenue significantly and contributes to the high-quality development of the company. HANQUYOU (trastuzumab, trade name in Europe: Zercepac®; trade names in Australia: Tuzucip® and Trastucip®), the first China-developed monoclonal antibody biosimilar approved both in China and Europe, is indicated for the treatment of HER2 positive early breast cancer, metastatic breast cancer and metastatic gastric cancer. HANQUYOU has become the China-developed biosimilar with the most marketing approvals, covering over 40 countries and regions up to now, including China, the UK, Switzerland, Australia, Singapore, Thailand, Argentina, Brazil, and Saudi Arabia. With its differentiated advantages such as dual dosage of 150mg and 60mg, preservative-free formulation, the product has rapidly expanded its market share in China, benefiting more than 170,000 Chinese patients to date. Notably, the Biologics License Application (BLA) for HANQUYOU has been accepted by the U.S. Food and Drug Administration (FDA) in the first half of 2023, which makes HANQUYOU potentially the first Chinese biosimilar approved in China, the EU, and the U.S. Furthermore, its New Drug Submission (NDS) was accepted by the Health Canada in July 2023, further expanding the product's footprint in major markets of biologics in the U.S. and Europe. HANSIZHUANG (serplulimab), the first anti-PD-1 monoclonal antibody (mAb) developed by Henlius, was launched in March 2022. Up to date, it has been approved for the treatment of MSI-H solid tumors, squamous non-small cell lung cancer (sqNSCLC), extensive-stage small cell lung cancer (ES-SCLC) and esophageal squamous cell carcinoma (ESCC). It is also the world's first anti-PD-1 mAb for the first-line treatment of small cell lung cancer (SCLC). In December 2023, the 5th NDA of HANSIZHUANG for the first-line treatment of non-squamous (NSCLC) was accepted by the National Medical Products Administration (NMPA), with approval expected in the second half of 2024. With its breakthrough efficacy and differentiated advantages in the relevant treatment fields, HANSIZHUANG has earned wide recognitions and has increasingly strengthened its market competitiveness and influence. To date, it has completed tendering process on the procurement platform in all provinces of Chinese mainland and has been included in over 70 provincial/city-level supplementary commercial medical insurances, benefiting more than 55,000 patients. Additionally, Henlius has collaborated with many world-renowned pharmaceutical companies to further expand HANSIZHUANG's global footprint, which now includes the U.S., Europe, Southeast Asia, MENA, and India. In December 2023, HANSIZHUANG was approved for marketing in Indonesia, becoming the first China anti-PD-1 mAb successfully approved in Southeast Asia. On the other hand, HANSIZHUANG's Marketing Authorization Application (MAA) for ES-SCLC has been validated by the European Medicines Agency (EMA). Moreover, Henlius has initiated a head-to-head bridging trial in the United States to compare HANSIZHUANG to standard of care atezolizumab (anti-PD-L1 mAb) for the first-line treatment of ES-SCLC to further support the BLA in the U.S., which encourages more Chinese medicines to go global. Accelerating the pace to meet clinical needs in a multi-dimensional way Innovation is the cornerstone of Henlius for its sustainable development. We deliver on the commitment to patient centricity and continuously deepen and implement the differentiated innovation strategy to build a diversified and high-quality product pipeline and accelerate the translation of research results to market and practice. Currently, our product pipeline includes about 60 molecules across mAb, polyclonal antibody (pAb), antibody-drug conjugate (ADC), fusion protein, and small molecule drug, of which more than 80% are self-developed. In 2023, the company accelerated global multicentre phase 3 clinical studies for marketed or late clinical-stage products, including HANSIZHUANG, HLX11 (pertuzumab biosimilar), HLX14 (denosumab biosimilar) and HLX04-O (anti-VEGF mAb), with the first patients dosed in the U.S., the EU and other countries and regions. Meanwhile, the company is actively exploring novel targets and molecular mechanisms in more disease areas, promoting a number of potential first/best-in-class products, including the novel EGFR-targeting ADC HLX42 and PD-L1-targeting ADC HLX43, to enter into the phase 1 clinical research. The company has successfully obtained breakthrough therapy designation (BTD) and fast track designation (FTD) for a number of products, further accelerating its innovation layout. As a global biopharmaceutical company, Henlius has continued to improve and enhance its large-scale production capabilities by establishing three production facilities, namely Xuhui Facility, Songjiang First Plant and Songjiang Second Plant, to form synergy and develop scale effects. The current commercial production capacity is 48,000 litres, enabling stable supply to markets beyond China, including Europe, Southeast Asia and Latin America. In 2026, the total production capacity is expected to reach 144,000 liters, laying a solid foundation for company's medium to long-term global commercial production and business development. In 2023, Henlius' commercial production facilities and supporting quality management system have undergone/passed intensive on-site inspections and audits conducted by regulatory authorities and international business partners, including the U.S., the EU, PIC/S members Indonesia and Brazil, and Columbia, promoting the global launch of more products, thus benefiting more patients across the world. Going forward, Henlius will continue to strengthen its innovation capabilities, fully enhance productivity, improve commercialization efficiency, to consolidate positive growth, create diversified growth engines, and pursue a higher-quality development path. About Henlius Henlius (2696.HK) is a global biopharmaceutical company with the vision to offer high-quality, affordable, and innovative biologic medicines for patients worldwide with a focus on oncology, autoimmune diseases, and ophthalmic diseases. Up to date, 5 products have been launched in China, 2 have been approved for marketing in overseas markets, 19 indications are approved worldwide, and 7 marketing applications have been accepted for review in China, the U.S., and the EU, respectively. Since its inception in 2010, Henlius has built an integrated biopharmaceutical platform with core capabilities of high-efficiency and innovation embedded throughout the whole product life cycle including R&D, manufacturing and commercialization. It has established global innovation centers and Shanghai-based manufacturing facilities in line with global Good Manufacturing Practice (GMP), including Xuhui Facility and Songjiang First Plant, both certificated by China and the EU GMP. Henlius has pro-actively built a diversified and high-quality product pipeline covering over 20 innovative monoclonal antibodies (mAbs) and has continued to explore immuno-oncology combination therapies with proprietary HANSIZHUANG (anti-PD-1 mAb) as backbone. Apart from the launched products HANLIKANG (rituximab), the first China-developed biosimilar, HANQUYOU (trastuzumab for injection, trade name in Europe: Zercepac®; trade names in Australia: Tuzucip® and Trastucip®), the first China-developed mAb biosimilar approved both in China and Europe, HANDAYUAN (adalimumab) and HANBEITAI (bevacizumab), the innovative product HANSIZHUANG has been approved by the NMPA for the treatment of MSI-H solid tumors, squamous non-small cell lung cancer (sqNSCLC) and extensive-stage small cell lung cancer (ES-SCLC), and esophageal squamous cell carcinoma (ESCC), making it the world's first anti-PD-1 mAb for the first-line treatment of SCLC. What's more, Henlius has conducted over 30 clinical studies for 16 products, expanding its presence in major markets as well as emerging markets.
BEIJING, March 4, 2024 /PRNewswire/ -- Sohu.com Limited (NASDAQ: SOHU) ("Sohu" or the "Company"), a leading Chinese online media, video, and game business group, today reported unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter Highlights[1] Total revenues were US$141 million, down 12% year-over-year and 3% quarter-over-quarter. Brand advertising revenues were US$20 million, down 30% year-over-year and 9% quarter-over-quarter. Online game revenues were US$115 million, down 5% year-over-year and 2% quarter-over-quarter. GAAP net loss attributable to Sohu.com Limited was US$13 million, compared with a net loss of US$7 million in the fourth quarter of 2022 and a net loss of US$14 million in the third quarter of 2023. Non-GAAP[2] net loss attributable to Sohu.com Limited was US$11 million, compared with a net loss of US$2 million in the fourth quarter of 2022 and a net loss of US$10 million in the third quarter of 2023. Fiscal Year 2023 Highlights Total revenues were US$601 million, down 18% compared with 2022. Brand advertising revenues were US$89 million, down 14% compared with 2022. Online game revenues were US$480 million, down 18% compared with 2022. GAAP net loss attributable to Sohu.com Limited was US$66 million, compared with a net loss of US$17 million in 2022. Non-GAAP net loss attributable to Sohu.com Limited was US$51 million, compared with net income of US$2 million in 2022. Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, "In the fourth quarter and full year of 2023, we continued to optimize operating efficiency with strict budget control, despite the external economic environment and cautious budgeting by advertisers. Thanks to these efforts, our bottom-line performance hit the high end of our guidance for the fourth quarter of 2023. At Sohu Media Portal, we further refined our products, upgraded technology and expanded premium content offerings, resulting in an enhanced user experience. At Sohu Video, we continued to execute our 'Twin Engine' strategy by developing engaging long and short-form content. In addition to the social distribution of short-form content, we also worked hard on science-based live broadcasting and other live broadcasting events, which further boosted user interactions and engagement on our platforms. We also proactively explored diversified monetization opportunities by integrating our advantageous resources and hosting various content marketing campaigns with our unique IPs. Lastly, our online game business remained stable, delivering revenues in line with our expectations." [1] The bankruptcy proceedings of Changyou's wholly-owned subsidiary Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao"), which operated Changyou's cinema advertising business, were concluded by a Chinese mainland bankruptcy court in the third quarter of 2023. The Company recognized a US$35 million disposal gain within discontinued operations in the condensed consolidated statements of operations for the third quarter of 2023. Unless indicated otherwise, results presented in this press release are related to continuing operations only, and exclude the disposal gain mentioned above. [2] Non-GAAP results exclude share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the one-time transition tax (the "Toll Charge") imposed by the U.S. Tax Cuts and Jobs Act signed into law on December 22, 2017 (the "U.S. TCJA"). Explanation of the Company's non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying "Non-GAAP Disclosure" and "Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures." Fourth Quarter Financial Results Revenues Total revenues were US$141 million, down 12% year-over-year and 3% quarter-over-quarter. Brand advertising revenues were US$20 million, down 30% year-over-year and 9% quarter-over-quarter. Online game revenues were US$115 million, down 5% year-over-year and 2% quarter-over-quarter. Gross Margin Both GAAP and non-GAAP gross margin were 76%, compared with 78% in the fourth quarter of 2022 and 76% in the third quarter of 2023. Both GAAP and non-GAAP gross margin for the brand advertising business were 16%, compared with 51% in the fourth quarter of 2022 and 15% in the third quarter of 2023. The year-over-year margin decrease was mainly due to a waiver of unpaid long-term accounts payable of approximately US$10 million recognized in the fourth quarter of 2022. Both GAAP and non-GAAP gross margin for online games were 87%, compared with 84% in the fourth quarter of 2022 and 87% in the third quarter of 2023. Operating Expenses GAAP operating expenses were US$133 million, up 2% year-over-year and 1% quarter-over-quarter. Non-GAAP operating expenses were US$134 million, up 3% year-over-year and 2% quarter-over-quarter. Operating Loss GAAP operating loss was US$25 million, compared with an operating loss of US$6 million in the fourth quarter of 2022 and an operating loss of US$21 million in the third quarter of 2023. Non-GAAP operating loss was US$26 million, compared with an operating loss of US$5 million in the fourth quarter of 2022 and an operating loss of US$20 million in the third quarter of 2023. Income Tax Expense GAAP income tax expense was US$14 million, compared with income tax expense of US$7 million in the fourth quarter of 2022 and income tax expense of US$15 million in the third quarter of 2023. Non-GAAP income tax expense was US$10 million, compared with income tax expense of US$5 million in the fourth quarter of 2022 and income tax expense of US$12 million in the third quarter of 2023. The year-over-year income tax expense increase was mainly due to a one-time tax benefit recognized by Changyou in the fourth quarter of 2022 as result of certain of its subsidiaries having been entitled to preferential tax rates upon being granted Software Enterprise status for 2021. Net Loss GAAP net loss attributable to Sohu.com Limited was US$13 million, or a net loss of US$0.37 per fully-diluted American depositary share ("ADS," each ADS representing one Sohu ordinary share), compared with a net loss of US$7 million in the fourth quarter of 2022 and a net loss of US$14 million in the third quarter of 2023. Non-GAAP net loss attributable to Sohu.com Limited was US$11 million, or a net loss of US$0.32 per fully-diluted ADS, compared with a net loss of US$2 million in the fourth quarter of 2022 and a net loss of US$10 million in the third quarter of 2023. Liquidity and Capital Resources As of December 31, 2023, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.3 billion. Fiscal Year 2023 Financial Results Revenues Total revenues were US$601 million, down 18% compared with 2022. Brand advertising revenues were US$89 million, down 14% compared with 2022. Online game revenues were US$480 million, down 18% compared with 2022. Gross Margin Both GAAP and non-GAAP gross margin was 76%, compared with 74% in 2022. Both GAAP and non-GAAP gross margin for the brand advertising business was 20%, compared with 16% in 2022. Both GAAP and non-GAAP gross margin for online games was 86%, compared with 84% in 2022. Operating Expenses For 2023, GAAP operating expenses totaled US$542 million, flat compared with 2022. Non-GAAP operating expenses were US$542 million, up 1% compared with 2022. Operating Profit/(Loss) GAAP operating loss was US$87 million, compared with an operating loss of US$1 million in 2022. Non-GAAP operating loss was US$87 million, compared with an operating profit of US$4 million in 2022. Income Tax Expense GAAP income tax expense was US$60 million, compared with income tax expense of US$58 million in 2022. Non-GAAP income tax expense was US$48 million, compared with income tax expense of US$53 million in 2022. Net Income/(Loss) GAAP net loss attributable to Sohu.com Limited was US$66 million, or a net loss of US$1.93 per fully-diluted ADS, compared with a net loss of US$17 million in 2022. Non-GAAP net loss attributable to Sohu.com Limited was US$51 million, or a net loss of US$1.51 per fully-diluted ADS, compared with net income of US$2 million in 2022. Supplementary Information for Changyou Results[3] Fourth Quarter 2023 Operating Results For PC games, total average monthly active user accounts[4] (MAU) were 2.3 million, an increase of 2% year-over-year and 4% quarter-over-quarter. Total quarterly aggregate active paying accounts[5] (APA) were 0.9 million, a decrease of 4% year-over-year and 9% quarter-over-quarter. The quarter-over-quarter decrease in APA was mainly a result of fewer in-game promotional activities having been launched for TLBB PC during the quarter. For mobile games, total average MAU were 1.7 million, a decrease of 4% year-over-year and 26% quarter-over-quarter. Total quarterly APA were 0.3 million, a decrease of 14% year-over-year and 25% quarter-over-quarter. The year-over-year decreases in MAU and APA were mainly due to the natural decline of our older games, partially offset by the launch of New TLBB Mobile during the third quarter of 2023. The quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of New TLBB Mobile. Fourth Quarter 2023 Unaudited Financial Results Total revenues were US$116 million, a decrease of 6% year-over-year and 2% quarter-over-quarter. Online game revenues were US$115 million, a decrease of 5% year-over-year and 2% quarter-over-quarter. Online advertising revenues were US$1 million, a decrease of 18% year-over-year and an increase of 1% quarter-over-quarter. GAAP and non-GAAP gross profit were both US$100 million, a decrease of 3% year-over-year and 2% quarter-over-quarter. GAAP operating expenses were US$53 million, an increase of 5% year-over-year and 2% quarter-over-quarter. The year-over-year increase was mainly due to an increase in salary and benefits expenses. Non-GAAP operating expenses were US$54 million, an increase of 8% year-over-year and 5% quarter-over-quarter. GAAP operating profit was US$48 million, compared with an operating profit of US$53 million for the fourth quarter of 2022 and US$51 million for the third quarter of 2023. Non-GAAP operating profit was US$47 million, compared with a non-GAAP operating profit of US$54 million for the fourth quarter of 2022 and US$52 million for the third quarter of 2023. Fiscal Year 2023 Unaudited Financial Results Total revenues were US$485 million, a decrease of 18% year-over-year. Online game revenues were US$480 million, a decrease of 18% year-over-year. Online advertising revenues were US$5 million, a decrease of 27% year-over-year. GAAP and non-GAAP gross profit were both US$418 million, a decrease of 16% year-over-year. GAAP operating expenses were US$216 million, a decrease of 3% year-over-year. Non-GAAP operating expenses were US$215 million, a decrease of 1% year-over-year. GAAP operating profit was US$202 million, compared with an operating profit of US$277 million for 2022. Non-GAAP operating profit was US$203 million, compared with a non-GAAP operating profit of US$282 million for 2022. [3] "Changyou Results" consist of the results of Changyou's online game business and its 17173.com Website. [4] Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month. [5] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter. Recent Development Sohu today announced that on March 2, 2024, its board of directors authorized an increase in Sohu's previously-announced share repurchase from up to US$80 million to up to US$150 million of the outstanding ADSs of Sohu. As previously announced, the ADSs may be purchased from time to time over a two-year period commencing November 11, 2023 at Sohu's management's discretion at prevailing market prices in accordance with Rule 10b‑18 and Rule 10b5-1 under the Securities Exchange Act of 1934. Sohu's management will continue to determine the timing and amount of any purchases of ADSs based on their evaluation of market conditions, the trading price of ADSs and other factors. The share repurchase program may be suspended or discontinued at any time. Sohu plans to continue to fund repurchases from its existing cash balance. As of February 29, 2024, Sohu had repurchased 1,276,457 ADSs under the share repurchase program for an aggregate cost of approximately US$12 million. Business Outlook For the first quarter of 2024, Sohu estimates: Brand advertising revenues to be between US$15 million and US$17 million; this implies an annual decrease of 25% to 33%, and a sequential decrease of 16% to 26%. Online game revenues to be between US$110 million and US$120 million; this implies an annual decrease of 7% to 15%, and a sequential decrease of 4% to a sequential increase of 5%. Non-GAAP net loss attributable to Sohu.com Limited to be between US$23 million and US$33 million; and GAAP net loss attributable to Sohu.com Limited to be between US$26 million and US$36 million. For the first quarter 2024 guidance, the Company has adopted a presumed exchange rate of RMB7.10=US$1.00, as compared with the actual exchange rate of approximately RMB6.84=US$1.00 for the first quarter of 2023, and RMB7.15=US$1.00 for the fourth quarter of 2023. This forecast reflects Sohu's management's current and preliminary view, which is subject to substantial uncertainty. Non-GAAP Disclosure To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Sohu's management uses non-GAAP measures of gross profit, operating profit, net income, net income attributable to Sohu.com Limited and diluted net income attributable to Sohu.com Limited per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the Toll Charge imposed by the U.S. TCJA. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Sohu's management believes excluding share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the Toll Charge from its non-GAAP financial measure is useful for itself and investors. Further, the impact of share-based compensation expense; changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments; the impact of income tax related to changes in the fair value of the Company's investments; and interest expense recognized in connection with the Toll Charge cannot be anticipated by management and business line leaders and these expenses were not built into the annual budgets and quarterly forecasts that have been the basis for information Sohu provides to analysts and investors as guidance for future operating performance. As share-based compensation expense and changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, and the impact of income tax related to changes in the fair value of the Company's investments do not involve subsequent cash outflow or are reflected in the cash flows at the equity transaction level, Sohu does not factor in their impact when evaluating and approving expenditures or when determining the allocation of its resources to its business segments. As a result, in general, the monthly financial results for internal reporting and any performance measures for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense, changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, the impact of income tax related to changes in the fair value of the Company's investments, and also excluded the interest expense recognized in connection with the Toll Charge. The non-GAAP financial measures are provided to enhance investors' overall understanding of Sohu's current financial performance and prospects for the future. A limitation of using non-GAAP gross profit, operating profit, net income, net income attributable to Sohu.com Limited, and diluted net income attributable to Sohu.com Limited per ADS excluding share-based compensation expense and interest expense recognized in connection with the Toll Charge is that share-based compensation expense and interest expense recognized in connection with the Toll Charge have been and can be expected to continue to be significant recurring expenses in Sohu's business. It is also possible that changes in fair value recognized in the Company's consolidated statements of operations with respect to the Company's investments, and the impact of income tax related to changes in the fair value of the Company's investments will recur in the future. In order to mitigate these limitations Sohu has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between the GAAP financial measures that are most directly comparable to the non-GAAP financial measures that have been presented. Notes to Financial Information Financial information in this press release other than the information indicated as being non-GAAP is derived from Sohu's unaudited financial statements prepared in accordance with GAAP. Safe Harbor Statement This announcement contains forward-looking statements. It is currently expected that the Business Outlook will not be updated until release of Sohu's next quarterly earnings announcement; however, Sohu reserves right to update its Business Outlook at any time for any reason. Statements that are not historical facts, including statements about Sohu's beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, instability in global financial and credit markets and its potential impact on the Chinese economy; exchange rate fluctuations, including their potential impact on the Chinese economy and on Sohu's reported U.S. dollar results; fluctuations in Sohu's quarterly operating results; the possibilities that Sohu will be unable to recoup its investment in video content and will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; Sohu's reliance on online advertising sales and online games for its revenues; and the impact of the U.S. TCJA. Further information regarding these and other risks is included in Sohu's annual report on Form 20-F for the year ended December 31, 2022, and other filings with and information furnished to the U.S. Securities and Exchange Commission. Conference Call and Webcast Sohu's management team will host a conference call at 7:30 a.m. U.S. Eastern Time, March 4, 2024 (8:30 p.m. Beijing/Hong Kong time, March 4, 2024) following the quarterly results announcement. Participants can register for the conference call by clicking here, which will lead them to the conference registration website. Upon registration, participants will receive details for the conference call, including the dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin. The live Webcast and archive of the conference call will be available on the Investor Relations section of Sohu's website at https://investors.sohu.com/ About Sohu Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China's internet pioneers, in the 1990s. As a mainstream media platform, Sohu is indispensable to the daily life of millions of Chinese, providing a network of web properties and community based products which continually offer a broad array of choices regarding information, entertainment and communication to the vast number of Sohu users. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of the leading online media destinations Sohu News App, mobile news portal m.sohu.com, PC portal www.sohu.com; online video website tv.sohu.com; and the online games platform www.changyou.com/en/. Sohu provides online brand advertising services as well as multiple news, information and content services on its matrix of websites and also on its mobile platforms. Sohu's online game business, conducted by its subsidiary Changyou, develops and operates a diverse portfolio of PC and mobile games, such as the well-known Tian Long Ba Bu ("TLBB") PC and Legacy TLBB Mobile. For investor and media inquiries, please contact: In China: Ms. Huang, Pu Sohu.com Limited Tel: +86 (10) 6272-6645 E-mail: ir@contact.sohu.com In the United States: Ms. Bergkamp, Linda Christensen Tel: +1 (480) 614-3004 E-mail: linda.bergkamp@christensencomms.com SOHU.COM LIMITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Twelve Months Ended Dec. 31, 2023 Sep. 30, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 Revenues: Brand advertising $ 20,195 $ 22,087 $ 28,778 $ 88,689 $ 103,233 Online games 114,759 117,049 121,381 479,697 585,424 Others 6,405 6,294 10,241 32,286 45,215 Total revenues 141,359 145,430 160,400 600,672 733,872 Cost of revenues: Brand advertising (includes share-based compensation expense of $0, $15, $8, $7, and $48, respectively) 16,966 18,745 14,020 71,103 86,642 Online games (includes share-based compensation expense of $-44, $18, $18, $10, and $143, respectively) 15,123 15,039 18,888 65,029 91,001 Others 1,733 687 2,888 9,625 13,930 Total cost of revenues 33,822 34,471 35,796 145,757 191,573 Gross profit 107,537 110,959 124,604 454,915 542,299 Operating expenses: Product development (includes share-based compensation expense of $-572, $280, $217, $156, and $2,026, respectively) 69,553 67,749 67,147 279,842 260,772 Sales and marketing (includes share-based compensation expense of $4, $39, $-21, $26, and $128, respectively) 50,813 53,040 47,067 213,449 225,480 General and administrative (includes share-based compensation expense of $-393, $358, $332, $509, and $2,594, respectively) 12,450 10,801 15,970 48,934 56,920 Total operating expenses 132,816 131,590 130,184 542,225 543,172 Operating loss (25,279) (20,631) (5,580) (87,310) (873) Other income, net 15,949 10,869 779 35,746 17,643 Interest income 11,578 11,519 6,190 45,222 17,311 Exchange difference (823) (478) (1,071) 692 6,524 Income/(loss) before income tax expense 1,425 1,279 318 (5,650) 40,605 Income tax expense 14,044 15,340 7,413 60,420 57,946 Net loss from continuing operations (12,619) (14,061) (7,095) (66,070) (17,341) Net income from discontinued operations, net of tax [6] - 35,426 - 35,426 - Net income/(loss) (12,619) 21,365 (7,095) (30,644) (17,341) Less: Net income/(loss) from continuing operations attributable to the noncontrolling interest shareholders (1) (2) (1) (265) 2 Net loss from continuing operations attributable to Sohu.com Limited (12,618) (14,059) (7,094) (65,805) (17,343) Net income from discontinued operations attributable to Sohu.com Limited - 35,426 - 35,426 - Net income/(loss) attributable to Sohu.com Limited (12,618) 21,367 (7,094) (30,379) (17,343) Basic net loss from continuing operations per share/ADS attributable to Sohu.com Limited[7] $ (0.37) $ (0.41) $ (0.21) (1.93) $ (0.50) Basic net income from discontinued operations per share/ADS attributable to Sohu.com Limited $ - $ 1.04 $ - 1.04 $ - Basic net income/(loss) per share/ADS attributable to Sohu.com Limited $ (0.37) $ 0.63 $ (0.21) (0.89) $ (0.50) Shares/ADSs used in computing basic net income/(loss) per share/ADS attributable to Sohu.com Limited 34,061 34,190 34,091 34,109 34,945 Diluted net loss from continuing operations per share/ADS attributable to Sohu.com Limited $ (0.37) $ (0.41) $ (0.21) (1.93) $ (0.50) Diluted net income from discontinued operations per share/ADS attributable to Sohu.com Limited $ - $ 1.04 $ - 1.04 $ - Diluted net income/(loss) per share/ADS attributable to Sohu.com Limited $ (0.37) $ 0.63 $ (0.21) (0.89) $ (0.50) Shares/ADSs used in computing diluted net income/(loss) per share/ADS attributable to Sohu.com Limited 34,061 34,190 34,091 34,109 34,945 [6] See Footnote 1. [7] Each ADS represents one ordinary share. SOHU.COM LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) As of Dec. 31, 2023 As of Dec. 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 362,504 $ 697,821 Restricted cash 3,184 3,641 Short-term investments 597,770 473,624 Accounts receivable, net 71,618 67,541 Prepaid and other current assets 81,971 83,093 Total current assets 1,117,047 1,325,720 Fixed assets, net 269,058 288,226 Goodwill 47,163 47,415 Long-term investments, net 45,198 26,012 Intangible assets, net 2,226 5,394 Long-term time deposits 388,613 265,802 Other assets 12,793 19,207 Total assets $ 1,882,098 $ 1,977,776 LIABILITIES Current liabilities: Accounts payable $ 44,609 $ 56,449 Accrued liabilities 103,779 126,461 Receipts in advance and deferred revenue 50,829 48,080 Accrued salary and benefits 50,330 60,754 Taxes payables 11,363 10,612 Other short-term liabilities 81,482 114,532 Total current liabilities $ 342,392 $ 416,888 Long-term other payables 3,924 1,795 Long-term tax liabilities 474,374 448,043 Other long-term liabilities 2,130 340 Total long-term liabilities $ 480,428 $ 450,178 Total liabilities $ 822,820 $ 867,066 SHAREHOLDERS' EQUITY: Sohu.com Limited shareholders' equity 1,058,956 1,109,442 Noncontrolling interest 322 1,268 Total shareholders' equity $ 1,059,278 $ 1,110,710 Total liabilities and shareholders' equity $ 1,882,098 $ 1,977,776 SOHU.COM LIMITED RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Three Months Ended Dec. 31, 2023 Three Months Ended Sep. 30, 2023 Three Months Ended Dec. 31, 2022 GAAP Non-GAAP Adjustment Non-GAAP GAAP Non-GAAP Adjustment Non-GAAP GAAP Non-GAAP Adjustment Non-GAAP - (a) 15 (a) (8) (a) Brand advertising gross profit $ 3,229 $ - $ 3,229 $ 3,342 $ 15 $ 3,357 $ 14,758 $ (8) $ 14,750 Brand advertising gross margin 16 % 16 % 15 % 15 % 51 % 51 % (44) (a) 18 (a) 18 (a) Online games gross profit $ 99,636 $ (44) $ 99,592 $ 102,010 $ 18 $ 102,028 $ 102,493 $ 18 $ 102,511 Online games gross margin 87 % 87 % 87 % 87 % 84 % 84 % - (a) - (a) - (a) Others gross profit $ 4,672 $ - $ 4,672 $ 5,607 $ - $ 5,607 $ 7,353 $ - $ 7,353 Others gross margin 73 % 73 % 89 % 89 % 72 % 72 % (44) (a) 33 (a) 10 (a) Gross profit $ 107,537 $ (44) $ 107,493 $ 110,959 $ 33 $ 110,992 $ 124,604 $ 10 $ 124,614 Gross margin 76 % 76 % 76 % 76 % 78 % 78 % Operating expenses $ 132,816 $ 961 (a) $ 133,777 $ 131,590 $ (677) (a) $ 130,913 $ 130,184 $ (528) (a) $ 129,656 (1,005) (a) 710 (a) 538 (a) Operating loss $ (25,279) $ (1,005) $ (26,284) $ (20,631) $ 710 $ (19,921) $ (5,580) $ 538 $ (5,042) Operating margin -18 % -19 % -14 % -14 % -3 % -3 % Income tax expense $ 14,044 $ (3,667) (d)$ 10,377 $ 15,340 $ (3,149) (d)$ 12,191 $ 7,413 $ (1,954) (c,d)$ 5,459 (1,005) (a) 710 (a) 538 (a) (827) (b) - 2,442 (b) - - (610) (c) 3,667 (d) 3,149 (d) 2,564 (d) Net loss before non-controlling interest $ (12,619) $ 1,835 $ (10,784) $ (14,061) 3,859 (10,202) $ (7,095) $ 4,934 $ (2,161) (1,005) (a) 710 (a) 538 (a) (827) (b) - 2,442 (b) - - (610) (c) 3,667 (d) 3,149 (d) 2,564 (d) Net loss from continuing operations attributable to Sohu.com Limited fordiluted net loss per share/ADS $ (12,618) $ 1,835 $ (10,783) $ (14,059) 3,859 (10,200) $ (7,094) $ 4,934 $ (2,160) Net income from discontinued operations attributable to Sohu.com Limited for diluted net loss per share/ADS [8] $ - - - $ 35,426 - $ 35,426 $ - - $ - Net income/(loss) attributable to Sohu.com Limited for diluted netincome/(loss) per share/ADS $ (12,618) 1,835 (10,783) $ 21,367 3,859 25,226 $ (7,094) $ 4,934 $ (2,160) Diluted net loss from continuing operations per share/ADS attributable to Sohu.com Limited $ (0.37) $ (0.32) $ (0.41) $ (0.30) $ (0.21) $ (0.06) Diluted net income from discontinued operations per share/ADS attributable to Sohu.com Limited $ - - $ 1.04 $ 1.04 $ - $ - Diluted net income/(loss) per share/ADS attributable to Sohu.com Limited $ (0.37) (0.32) $ 0.63 $ 0.74 $ (0.21) $ (0.06) Shares/ADSs used in computing diluted net income/(loss) per share/ADS attributable to Sohu.com Limited 34,061 34,061 34,190 34,190 34,091 34,091 Note: (a) To eliminate the impact of share-based awards. (b) To adjust for changes in the fair value of the Company's investments. (c) To adjust for the impact of income tax related to changes in the fair value of the Company's investments. (d) To adjust for the effect of the Toll Charge. [8] See Footnote 1. SOHU.COM LIMITED RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATION MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Twelve Months Ended Dec. 31, 2023 Twelve Months Ended Dec. 31, 2022 GAAP Non-GAAP Adjustments Non-GAAP GAAP Non-GAAPAdjustments Non-GAAP 7 (a) 48 (a) Brand advertising gross profit $ 17,586 $ 7 $ 17,593 $ 16,591 $ 48 $ 16,639 Brand advertising gross margin 20 % 20 % 16 % 16 % 10 (a) 143 (a) Online games gross profit $ 414,668 $ 10 $ 414,678 $ 494,423 $ 143 $ 494,566 Online games gross margin 86 % 86 % 84 % 84 % - (a) - (a) Others gross profit $ 22,661 $ - $ 22,661 $ 31,285 $ - $ 31,285 Others gross margin 70 % 70 % 69 % 69 % 17 (a) 191 (a) Gross profit $ 454,915 $ 17 $ 454,932 $ 542,299 $ 191 $ 542,490 Gross margin 76 % 76 % 74 % 74 % Operating expenses $ 542,225 $ (691) (a)$ 541,534 $ 543,172 $ (4,748) (a)$ 538,424 708 (a) 4,939 (a) Operating profit/(loss) $ (87,310) $ 708 $ (86,602) $ (873) $ 4,939 $ 4,066 Operating margin -15 % -14 % 0 % 1 % Income tax expense $ 60,420 $ (12,297) (c,d)$ 48,123 $ 57,946 $ (5,118) (c,d)$ 52,828 708 (a) 4,939 (a) 1,391 (b) 9,659 (b) (555) (c) (2,416) (c) 12,852 (d) 7,534 (d) Net income/(loss) before non-controlling interest $ (66,070) 14,396 (51,674) $ (17,341) $ 19,716 $ 2,375 708 (a) 4,939 (a) 1,391 (b) 9,659 (b) (555) (c) (2,416) (c) 12,852 (d) 7,534 (d) Net income/(loss) from continuing operations attributable to Sohu.com Limited for diluted netincome/(loss) per share/ADS $ (65,805) $ 14,396 $ (51,409) $ (17,343) $ 19,716 $ 2,373 Net income from discontinued operations attributable to Sohu.com Limited for diluted net income per share/ADS [9] $ 35,426 - 35,426 $ - $ - $ - Net income/(loss) attributable to Sohu.comLimited for diluted net income/(loss) per share/ADS $ (30,379) 14,396 (15,983) $ (17,343) $ 19,716 $ 2,373 Diluted net income/(loss) from continuing operations per share/ADS attributable to Sohu.com Limited $ (1.93) $ (1.51) $ (0.50) $ 0.07 Diluted net income from discontinued operations per share/ADS attributable to Sohu.com Limited $ 1.04 1.04 $ - - Diluted net income/(loss) per share/ADS attributable to Sohu.com Limited $ (0.89) (0.47) $ (0.50) 0.07 Share/ADS used in computing diluted netincome/(loss) per share/ADS attributable to Sohu.com Limited 34,109 34,109 34,945 34,945 Note: (a) To eliminate the impact of share-based awards. (b) To adjust for changes in the fair value of the Company's investments. (c) To adjust for the impact of income tax related to changes in the fair value of the Company's investments. (d) To adjust for the effect of the U.S. TCJA. [9] See Footnote 1.
BEIJING, Feb. 29, 2024 /PRNewswire/ -- iHuman Inc. (NYSE: IH) ("iHuman" or the "Company"), a leading provider of tech-powered, intellectual development products in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Highlights Revenues were RMB250.4 million (US$35.3 million), compared with RMB260.7 million in the same period last year. Gross profit was RMB178.2 million (US$25.1 million), compared with RMB181.0 million in the same period last year. Operating income was RMB21.9 million (US$3.1 million), compared with RMB39.1 million in the same period last year. Net income was RMB33.3 million (US$4.7 million), compared with RMB35.4 million in the same period last year. Average total MAUs[1] reached a record-high of 25.38 million, a year-over-year increase of 14.2%. Fiscal Year 2023 Highlights Revenues were RMB1,018.1 million (US$143.4 million), compared with RMB985.5 million in fiscal year 2022. Gross profit was RMB721.3 million (US$101.6 million), compared with RMB691.2 million in fiscal year 2022. Operating income was RMB159.9 million (US$22.5 million), compared with RMB111.6 million in fiscal year 2022. Net income was RMB180.9 million (US$25.5 million), compared with RMB109.8 million in fiscal year 2022. Average total MAUs were 23.04 million, a year-over-year increase of 16.0%. [1] "Average total MAUs" refers to the monthly average of the sum of the MAUs of each of the Company's apps during a specific period, which is counted based on the number of unique mobile devices through which such app is accessed at least once in a given month, and duplicate access to different apps is not eliminated from the total MAUs calculation.[2] "Paying users" refers to users who paid subscription fees for premium content on any of the Company's apps during a specific period; a user who makes payments across different apps using the same registered account is counted as one paying user, and a user who makes payments for the same app multiple times in the same period is counted as one paying user. Dr. Peng Dai, Director and Chief Executive Officer of iHuman, commented, "As we look back on 2023, I am truly inspired by the accomplishments that we have achieved, especially considering the decline in China's newborn population over the past few years. In response to the challenges posed by the declining birth rate, we have been actively expanding our presence in the international markets, diversifying our product portfolio, and developing products that cover a broader age demographic. These strategic efforts have helped us achieve remarkable progress. For instance, our globally-oriented app, Aha World, delivered impressive performance in 2023. By the end of the year, its YouTube and TikTok accounts collectively attracted over 200 million views. It also earned YouTube's Silver Creator Award and rose to rank among the top three most popular children's apps on the U.S. Apple app store in the fourth quarter. Meanwhile, our flagship product, iHuman Chinese, has consistently held the No.1 spot in the top-grossing category for children's apps on the Apple app store in China for iPad users for nearly 4.5 years, according to Appfigures, a reputable American data analytics company. This past year has been marked by revenue growth and sustained profitability, and we once again set a new record for average total MAUs in the fourth quarter which further solidified our position as an industry leader." "We are also thrilled to announce the acquisition of intellectual property assets related to "Cosmicrew" from Kunpeng, an animation production studio within the Perfect World Group. This strategic acquisition is expected to generate significant synergies with our business. Firstly, "Cosmicrew" is a popular cartoon adventure series that has established a strong presence in the children's entertainment sector. The light-hearted and delightful nature of this cartoon IP seamlessly compliments our overall product style and aesthetic. With the IP already integrated into some of our products before the acquisition, we now have greater autonomy over our creative content. In addition, we now can expand our product range further by developing additional IP offerings and derivatives, including animations, toys, and more. At the market level, "Cosmicrew" is a popular cartoon with a large audience base, and this acquisition will enable us to further extend our market reach and engage with a broader audience." "As we continue to progress on our strategic initiatives, we remain fully dedicated to strengthening our core competencies through ongoing product enhancement. We have been enriching the content and functionality of our app products to elevate the digital experience of our users and have made further strides in integrating our online and offline offerings to create a more immersive and holistic journey for users. For example, we rolled out both multi-leveled physical books and a specially developed smart reading pen that complement our leveled English reading app, iHuman Fantastic Friends. This combination allows kids to explore captivating original English stories tailored to their proficiency level in physical and digital formats, offering them a flexible and simple reading experience while enhancing their understanding and engagement with the content." "In 2023, we further strengthened our comprehensive product suite, significantly expanded our international presence, and earned increased market recognition with several prestigious industry accolades. We achieved all these milestones despite a highly volatile and challenging macroeconomic climate, which I believe is a testament to the caliber of our products, the effectiveness of our strategies, and the resilience of our team in overcoming diverse economic challenges. As we enter 2024, I am filled with anticipation for the continued success that lies ahead." Ms. Vivien Weiwei Wang, Director and Chief Financial Officer of iHuman, added, "Our fourth quarter results ended 2023 on a positive note despite a turbulent global economic environment. While our fourth quarter results saw a marginal decrease year-over-year, it reflected a normalization from the exceptional fourth quarter performance last year, which was caused by a heightened demand driven by more indoor activities during the pandemic. From a full year perspective in 2023, despite the fact that everybody shifted back to regular routines and spent less time at home after the pandemic, we still achieved satisfactory growth as both revenues and MAUs increased compared to fiscal year 2022. We are also proud to announce our eighth consecutive quarter of profitability, with annual net income reaching RMB180.9 million. This achievement marks our second straight year of profitability since our IPO in 2020 and demonstrates that we have successfully charted a path of healthy and sustainable growth. The momentum we have sustained in our business operations has further solidified our financial position, which not only bolsters our capacity for ongoing growth and innovation, but also enables us to enhance returns to our shareholders through issuing a special cash dividend of US$0.02 per ordinary share, or US$0.10 per ADS. The approval of the special dividend by our board of directors reflects our confidence in our long-term growth potential and strong balance sheet. Moving forward, we will continue to execute on our strategic priorities and maintain a growth-oriented approach to create even greater value for our users and shareholders." Fourth Quarter 2023 Unaudited Financial Results Revenues Revenues were RMB250.4 million (US$35.3 million), compared with RMB260.7 million in the same period last year. Average total MAUs for the quarter were 25.38 million, an increase of 14.2% year-over-year from 22.22 million in the same period last year. The number of paying users[2] was 1.45 million. Cost of Revenues Cost of revenues was RMB72.2 million (US$10.2 million), a decrease of 9.4% from RMB79.7 million in the same period last year, primarily due to decreased channel costs. Gross Profit and Gross Margin Gross profit was RMB178.2 million (US$25.1 million), compared with RMB181.0 million in the same period last year. Gross margin was 71.2%, compared with 69.4% in the same period last year. Operating Expenses Total operating expenses were RMB156.4 million (US$22.0 million), an increase of 10.2% from RMB141.9 million in the same period last year. Research and development expenses were RMB66.3 million (US$9.3 million), compared with RMB66.8 million in the same period last year. Sales and marketing expenses were RMB64.5 million (US$9.1 million), an increase of 40.8% from RMB45.8 million in the same period last year, primarily due to increased strategic spending on promotional activities and brand enhancement. General and administrative expenses were RMB25.5 million (US$3.6 million), a decrease of 12.7% from RMB29.3 million in the same period last year, primarily due to payroll related cost-savings and other decreased expenses as a result of the continued optimization of our operational efficiency. Operating Income Operating income was RMB21.9 million (US$3.1 million), compared with RMB39.1 million in the same period last year. Net Income Net income was RMB33.3 million (US$4.7 million), compared with RMB35.4 million in the same period last year. Basic and diluted net income per ADS were RMB0.63 (US$0.09) and RMB0.61 (US$0.09), respectively, compared with RMB0.67 and RMB0.66 in the same period last year. Each ADS represents five Class A ordinary shares of the Company. Deferred Revenue and Customer Advances Deferred revenue and customer advances were RMB318.6 million (US$44.9 million) as of December 31, 2023, compared with RMB379.1 million as of December 31, 2022. Cash and Cash Equivalents Cash and cash equivalents were RMB1,213.8 million (US$171.0 million) as of December 31, 2023, compared with RMB1,050.0 million as of December 31, 2022. Fiscal Year 2023 Unaudited Financial Results Revenues Revenues were RMB1,018.1 million (US$143.4 million), an increase of 3.3% from RMB985.5 million in fiscal year 2022. Average total MAUs were 23.04 million, an increase of 16.0% year-over-year from 19.86 million in fiscal year 2022. The number of paying users for the year was 4.27 million. Cost of Revenues Cost of revenues was RMB296.9 million (US$41.8 million), compared with RMB294.3 million in fiscal year 2022. Gross Profit and Gross Margin Gross profit was RMB721.3 million (US$101.6 million), an increase of 4.4% from RMB691.2 million in fiscal year 2022. Gross margin was 70.8%, compared with 70.1% in fiscal year 2022. Operating Expenses Total operating expenses were RMB561.4 million (US$79.1 million), a decrease of 3.1% from RMB579.6 million in fiscal year 2022. Research and development expenses were RMB257.5 million (US$36.3 million), a decrease of 17.8% from RMB313.5 million in fiscal year 2022, primarily due to cost savings in payroll-related expenses and outsourcing expenses. Sales and marketing expenses were RMB199.5 million (US$28.1 million), an increase of 27.1% from RMB156.9 million in fiscal year 2022, primarily due to increased strategic spending on promotional activities and brand enhancement. General and administrative expenses were RMB104.3 million (US$14.7 million), a decrease of 4.5% from RMB109.2 million in fiscal year 2022. Operating Income Operating income was RMB159.9 million (US$22.5 million), compared with RMB111.6 million in fiscal year 2022. Net Income Net income was RMB180.9 million (US$25.5 million), compared with RMB109.8 million in fiscal year 2022. Basic and diluted net income per ADS were RMB3.43 (US$0.48) and RMB3.30 (US$0.46), respectively, compared with RMB2.06 and RMB2.03 in fiscal year 2022. Each ADS represents five Class A ordinary shares of the Company. Special Cash Dividend To deliver return of capital to shareholders, the Company's board of directors (the "Board") approved a special cash dividend of US$0.02 per ordinary share, or US$0.10 per ADS, to holders of ordinary shares and holders of ADSs as of the close of business on March 28, 2024 New York Time, payable in U.S. dollars. The aggregate amount of the special dividend will be approximately US$5.3 million. The payment date is expected to be on or around May 8, 2024 and May 15, 2024 for holders of ordinary shares and holders of ADSs, respectively. Acquisition of IP Assets The Company, through one of its consolidated affiliated entities, entered into an asset transfer agreement (the "Asset Transfer Agreement") with Kunpeng, an animation production studio within the Perfect World Group (the "Transferors"). Pursuant to the Asset Transfer Agreement, the Company will acquire intellectual property assets related to "Cosmicrew" from Kunpeng, including copyrights and trademarks, among others, for a total consideration of RMB64.0 million. The consideration of the transaction was determined with the assistance of an independent third-party valuation firm. As the Transferors are related parties of the Company, the transaction has been approved by the Board and the audit committee of the Board, and is subject to customary closing conditions. Exchange Rate Information The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 29, 2023, which was RMB7.0999 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts. Non-GAAP Financial Measures iHuman considers and uses non-GAAP financial measures, such as adjusted operating income, adjusted net income and adjusted diluted net income per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). iHuman defines adjusted operating income, adjusted net income and adjusted diluted net income per ADS as operating income, net income and diluted net income per ADS excluding share-based compensation expenses, respectively. Adjusted operating income, adjusted net income and adjusted diluted net income per ADS enable iHuman's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. iHuman believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose. Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of the non-GAAP financial measures. In addition, the non-GAAP financial measures iHuman uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about iHuman's beliefs and expectations, are forward-looking statements. Among other things, the description of the management's quotations in this announcement contains forward-looking statements. iHuman may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iHuman's growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract and retain users, convert non-paying users into paying users and increase the spending of paying users, the trends in, and size of, the market in which iHuman operates; its expectations regarding demand for, and market acceptance of, its products and services; its expectations regarding its relationships with business partners; general economic and business conditions; regulatory environment; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in iHuman's filings with the SEC. All information provided in this press release is as of the date of this press release, and iHuman does not undertake any obligation to update any forward-looking statement, except as required under applicable law. About iHuman Inc. iHuman Inc. is a leading provider of tech-powered, intellectual development products in China that is committed to making the child-upbringing experience easier for parents and transforming intellectual development into a fun journey for children. Benefiting from a deep legacy that combines over two decades of experience in the parenthood industry, superior original content, advanced high-tech innovation DNA and research & development capabilities with cutting-edge technologies, iHuman empowers parents with tools to make the child-upbringing experience more efficient. iHuman's unique, fun and interactive product offerings stimulate children's natural curiosity and exploration. The Company's comprehensive suite of innovative and high-quality products include self-directed apps, interactive content and smart devices that cover a broad variety of areas to develop children's abilities in speaking, critical thinking, independent reading and creativity, and foster their natural interest in traditional Chinese culture. Leveraging advanced technological capabilities, including 3D engines, AI/AR functionality, and big data analysis on children's behavior & psychology, iHuman believes it will continue to provide superior experience that is efficient and relieving for parents, and effective and fun for children, in China and all over the world, through its integrated suite of tech-powered, intellectual development products. For more information about iHuman, please visit https://ir.ihuman.com/. For investor and media enquiries, please contact: iHuman Inc.Mr. Justin ZhangInvestor Relations DirectorPhone: +86 10 5780-6606E-mail: ir@ihuman.com Christensen In ChinaMs. Alice LiPhone: +86-10-5900-1548E-mail: alice.li@christensencomms.com In the USMs. Linda BergkampPhone: +1-480-614-3004E-mail: linda.bergkamp@christensencomms.com iHuman Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares, ADSs, per share and per ADS data) December 31, December 31, December 31, 2022 2023 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 1,049,999 1,213,767 170,956 Accounts receivable, net 79,614 60,832 8,568 Inventories, net 19,127 16,518 2,327 Amounts due from related parties 2,286 1,810 255 Prepayments and other current assets 102,765 89,511 12,607 Total current assets 1,253,791 1,382,438 194,713 Non-current assets Property and equipment, net 9,205 6,169 869 Intangible assets, net 24,872 23,245 3,274 Operating lease right-of-use assets 12,782 3,648 514 Long-term investment 26,333 26,333 3,709 Other non-current assets 6,416 8,662 1,218 Total non-current assets 79,608 68,057 9,584 Total assets 1,333,399 1,450,495 204,297 LIABILITIES Current liabilities Accounts payable 24,206 22,139 3,118 Deferred revenue and customer advances 379,063 318,587 44,872 Amounts due to related parties 6,944 4,428 624 Accrued expenses and other current liabilities 144,717 143,677 20,236 Current operating lease liabilities 6,123 1,927 271 Total current liabilities 561,053 490,758 69,121 Non-current liabilities Non-current operating lease liabilities 2,894 1,933 272 Total non-current liabilities 2,894 1,933 272 Total liabilities 563,947 492,691 69,393 SHAREHOLDERS' EQUITY Ordinary shares (par value of US$0.0001 per share, 700,000,000 Class A shares authorized as of December 31, 2022 and December 31, 2023; 125,122,382 Class A shares issued and 121,722,467 outstanding as of December 31, 2022; 125,122,382 Class A shares issued and 119,704,787 outstanding as of December 31, 2023; 200,000,000 Class B shares authorized, 144,000,000 Class B ordinary shares issued and outstanding as of December 31, 2022 and December 31, 2023; 100,000,000 shares (undesignated) authorized, nil shares (undesignated) issued and outstanding as of December 31, 2022 and December 31, 2023) 185 185 26 Additional paid-in capital 1,079,099 1,088,628 153,330 Treasury stock (7,123) (16,665) (2,347) Statutory reserves 7,967 8,164 1,150 Accumulated other comprehensive income 10,497 17,955 2,529 Accumulated deficit (321,173) (140,463) (19,784) Total shareholders' equity 769,452 957,804 134,904 Total liabilities and shareholders' equity 1,333,399 1,450,495 204,297 iHuman Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares, ADSs, per share and per ADS data) For the three months ended For the year ended December 31, September 30, December 31, December 31, December 31, December 31, December 31, 2022 2023 2023 2023 2022 2023 2023 RMB RMB RMB US$ RMB RMB US$ Revenues 260,704 261,496 250,447 35,275 985,517 1,018,139 143,402 Cost of revenues (79,707) (74,871) (72,201) (10,169) (294,343) (296,868) (41,813) Gross profit 180,997 186,625 178,246 25,106 691,174 721,271 101,589 Operating expenses Research and development expenses (66,796) (66,168) (66,293) (9,337) (313,481) (257,546) (36,275) Sales and marketing expenses (45,811) (53,994) (64,511) (9,086) (156,916) (199,504) (28,100) General and administrative expenses (29,253) (26,070) (25,547) (3,598) (109,195) (104,334) (14,695) Total operating expenses (141,860) (146,232) (156,351) (22,021) (579,592) (561,384) (79,070) Operating income 39,137 40,393 21,895 3,085 111,582 159,887 22,519 Other income, net 5,315 19,507 8,965 1,263 21,190 42,686 6,012 Income before income taxes 44,452 59,900 30,860 4,348 132,772 202,573 28,531 Income tax (expenses) / benefits (9,019) (7,984) 2,411 340 (22,953) (21,666) (3,052) Net income 35,433 51,916 33,271 4,688 109,819 180,907 25,479 Net income per ADS: - Basic 0.67 0.98 0.63 0.09 2.06 3.43 0.48 - Diluted 0.66 0.95 0.61 0.09 2.03 3.30 0.46 Weighted average number of ADSs: - Basic 53,205,925 52,747,426 52,740,067 52,740,067 53,307,044 52,810,587 52,810,587 - Diluted 54,033,560 54,772,536 54,753,503 54,753,503 54,040,908 54,753,025 54,753,025 Total share-based compensation expenses included in: Cost of revenues 168 67 64 9 348 299 42 Research and development expenses 2,564 1,160 1,115 157 6,377 4,055 571 Sales and marketing expenses 559 147 122 17 1,599 707 100 General and administrative expenses 1,757 1,105 817 115 4,720 4,374 616 iHuman Inc. UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$") except for number of shares, ADSs, per share and per ADS data) For the three months ended For the year ended December 31, September 30, December 31, December 31, December 31, December 31, December 31, 2022 2023 2023 2023 2022 2023 2023 RMB RMB RMB US$ RMB RMB US$ Operating income 39,137 40,393 21,895 3,085 111,582 159,887 22,519 Share-based compensation expenses 5,048 2,479 2,118 298 13,044 9,435 1,329 Adjusted operating income 44,185 42,872 24,013 3,383 124,626 169,322 23,848 Net income 35,433 51,916 33,271 4,688 109,819 180,907 25,479 Share-based compensation expenses 5,048 2,479 2,118 298 13,044 9,435 1,329 Adjusted net income 40,481 54,395 35,389 4,986 122,863 190,342 26,808 Diluted net income per ADS 0.66 0.95 0.61 0.09 2.03 3.30 0.46 Impact of non-GAAP adjustments 0.09 0.04 0.04 0.00 0.24 0.18 0.03 Adjusted diluted net income per ADS 0.75 0.99 0.65 0.09 2.27 3.48 0.49 Weighted average number of ADSs – diluted 54,033,560 54,772,536 54,753,503 54,753,503 54,040,908 54,753,025 54,753,025 Weighted average number of ADSs – adjusted 54,033,560 54,772,536 54,753,503 54,753,503 54,040,908 54,753,025 54,753,025
A12 藝術空間
Earnings projections or forecasts
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