On December 26, 2024, Hong En, a technology puzzle product company, announced its financial report for the third quarter of the 2024 fiscal year. According to the financial report, the average monthly active users (MAU) of Hong En in the quarter was 29.12 million, a record high and a year-on-year increase of 14.8%.
In the third quarter, our product user demand remained strong, driving the average monthly active users to a new high, with a year-on-year increase of 14.8% to 29.12 million, highlighting the effectiveness of our product strategy centered on innovation, overseas market expansion, and timely response to market changes, "said Dai Peng, Director and CEO of Hongen
In terms of domestic business, the company further expanded its product lineup and consolidated Hongen's leading position in the market during the reporting period by launching "Hongen Big Reading". This new product aims to cultivate children's interest in Chinese reading, improve their literacy and expression skills, and deepen their understanding of Chinese culture. Internationally, Hong En continues to enrich its product matrix and increase user stickiness while expanding its global influence through the addition of new content and features.
Looking to the future, we will continue to focus on strengthening our diversified product matrix in the global market, better promoting the comprehensive development of children while advancing our sustainable development initiatives, "Dai Peng concluded.
Hong En's director and CFO Wang Weiwei stated that Hong En's animation studio Kunpeng launched a new animated series "Rainbow Guardians" in October, further enriching its product line. The series quickly gained market attention upon its release and topped the children's program rankings on mainstream media platforms such as Tencent Video, iQiyi, and Youku.
In addition to consumer oriented products, Hongen has also established a comprehensive B2B business model, which currently covers nearly 10000 kindergartens and institutions across the country. Hong En provides these institutions with comprehensive, multi-dimensional, and directly applicable products through customized content resources and solutions, effectively meeting the growth needs of children and promoting the high-quality development of kindergartens and institutions.
Recently, Hong En opened an experiential center in Zhongshan City, Guangdong Province that combines education, fun, hands-on experience, and uniqueness. As a one-stop display platform for institutional customers and suppliers, the center is divided into six core areas: core content, featured content, delayed services, multifunctional hall, indoor games, and outdoor games. It showcases Hongen's interactive products and innovative methods for promoting children's growth in the park environment.
Wang Weiwei said, "In the third quarter of 2024, Hong En achieved profitability for the eleventh consecutive quarter, with a net profit of 25.1 million yuan. With sustained and stable financial performance, it continues to expand its influence in diversified channels and customer groups
In the future, Hongen will rely on a solid financial foundation and innovative product ecosystem to deepen its influence on both the consumer and institutional ends, consolidate Hongen's industry-leading position, and continue to create value for shareholders.