iHuman Inc. Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

Core Insights - iHuman Inc. reported its unaudited financial results for Q4 and fiscal year 2024, highlighting a decrease in revenues and net income due to market conditions and consumer spending trends [1][10][21]. Financial Performance - Q4 2024 revenues were RMB 232.7 million (US$31.9 million), a decrease of 7.1$ 126.3 million), down 9.4% from RMB 1,018.1 million in fiscal year 2023 [21]. - Q4 2024 net income was RMB 26.5 million (US$3.6 million), compared to RMB 33.3 million in the same period last year [18][14]. - Fiscal year 2024 net income was RMB 98.6 million (US$ 13.5 million), down from RMB 180.9 million in fiscal year 2023 [28]. User Engagement - Average total Monthly Active Users (MAUs) for Q4 2024 were 25.78 million, an increase from 25.38 million in Q4 2023 [11][14]. - For fiscal year 2024, average total MAUs rose to 26.47 million, a 14.9% increase from 23.04 million in fiscal year 2023, attributed to effective user acquisition strategies [22]. Product Innovation - The company emphasized its commitment to technological innovation, particularly in AI, with the launch of a proprietary large language model (LLM) that enhances user experience [4][5]. - iHuman introduced an innovative learning framework combining challenge-based exploration and project-driven creativity, particularly in its coding courses [4]. Cost Management - Q4 2024 cost of revenues was RMB 76.2 million (US$10.4 million), up from RMB 72.2 million in the same period last year [12]. - Total operating expenses for Q4 2024 were RMB 141.5 million (US$ 19.4 million), a decrease of 9.5% from RMB 156.4 million in Q4 2023 [15]. Shareholder Returns - The board approved a special cash dividend of US$ 0.02 per ordinary share, reflecting confidence in the company's financials and commitment to shareholder value [7][29]. Market Trends - The company noted challenges from a declining newborn population in China and conservative consumer spending impacting overall performance [10][21]. Strategic Initiatives - iHuman's animation studio, Kunpeng, expanded its brand presence through merchandise and a YouTube channel for its animated series, Rainbow Crew, enhancing international engagement [8][9]. - The company effectively utilized social media to broaden its market reach, with its IP, Two Cats, gaining significant traction on platforms like Red Note [9].