【True Insight Hong Kong Stock Market Trends】CHIZICITY TECHNOLOGY (09911.HK): Revenue in the first three quarters of 2024 exceeded 3.5 billion yuan, with social business revenue increasing by over 60% year-on-year.
Leading global social entertainment company – $NEWBORNTOWN(09911.HK) CHIZICITY TECHNOLOGY Co., Ltd. released its unaudited operational data for the first three quarters of 2024. The company's core social business maintained rapid growth, with key operational metrics showing strong performance. In the first three quarters, the company's social business revenue reached approximately RMB 3.24 to 3.28 billion, representing a year-on-year increase of about 60.7% to 62.7%.
Social business revenue grew rapidly, with SUGO becoming the second social product to achieve monthly revenue exceeding $10 million
The significant growth in social business revenue was primarily driven by the continued rapid development of the social product portfolio. This year, the scale of the pan-demographic social business further expanded, with the company focusing on key markets such as the Middle East and North Africa (MENA), continuously optimizing operational strategies, and enhancing user experience and commercialization efficiency. Among them, the pioneering products MICO and YoHo continued to contribute stable cash flow and profits, while new products TopTop and SUGO maintained rapid growth, showing outstanding performance across multiple dimensions, including user base, revenue, and profitability.
In the third quarter, the companionship social platform SUGO sustained strong growth, becoming the company's highest-revenue social product and the second social product after MICO to achieve monthly revenue exceeding $10 million. According to data.ai, a mobile app analytics platform, SUGO consistently ranked among the top in the iOS social app bestseller charts in countries such as the UAE, Saudi Arabia, and Turkey.
Through localized product innovation, refined operations, content ecosystem development, and continuous optimization of commercialization strategies, the company's multiple products have secured leading positions in vertical segments, further strengthening the competitiveness of its pan-demographic social product portfolio in key markets. Meanwhile, the company has also made positive progress in its diversified demographic social business. Since its launch, the overseas diversified community HeeSay has accelerated its brand influence in global markets by hosting innovative themed events such as HeeSay Gala and LivelyLaugh, earning a spot in DatingNews' "Top 10 Most Innovative LGBTQ+ Social Apps of 2024."
Innovation business revenue continued to grow, with gross transaction volume increasing approximately 182.5% year-on-year
While the core social business maintained growth, the innovation business, as the company's second growth curve, demonstrated steady performance. For the nine months ended September 30, 2024, innovation business revenue reached approximately RMB 300 to 320 million, representing a year-on-year increase of about 12.4% to 19.9%. Additionally, the company's premium gaming business continued to achieve breakthroughs. Driven by increased gross transaction volume from flagship games such as Alice's Dream: Merge Games, the company's premium gaming gross transaction volume reached approximately RMB 576 million during the period, a year-on-year increase of about 182.5%. In 2024, the flagship game Alice's Dream: Merge Games experienced rapid growth, entering Sensor Tower's Top 30 Overseas Revenue List for Chinese Mobile Games in May and June.
The company continues to consolidate its competitive advantage centered on "localization" and expand growth opportunities in strategic markets such as MENA. In August this year, the company officially obtained the Regional Headquarters License (RHQ License) issued by the Saudi Arabian Ministry of Investment (MISA). On September 26, the company and MISA jointly hosted an event themed "Connect, Explore, and Prosper Together" in Riyadh, envisioning a vibrant future for the local online social entertainment industry. Moving forward, the company will continue to anchor its presence in the Middle East while expanding globally, leveraging its capabilities in "product replication" and "country replication" to explore the global social entertainment market and create positive emotional value for more users.
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