iHuman Inc. Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results

Core Viewpoint - iHuman Inc. reported its financial results for Q4 and fiscal year 2023, highlighting revenue growth and a record increase in monthly active users (MAUs), despite challenges from a declining birth rate in China. The company is focusing on international expansion and product diversification to sustain growth [1]. Q4 2023 Highlights - Revenues for Q4 2023 were RMB250.4 million (US$35.3 million), a decrease from RMB260.7 million in the same period last year [2]. - Gross profit was RMB178.2 million (US$25.1 million), compared to RMB181.0 million in the same period last year [2]. - Operating income decreased to RMB21.9 million (US$3.1 million) from RMB39.1 million in the same period last year [2]. - Net income was RMB33.3 million (US$4.7 million), down from RMB35.4 million in the same period last year [2]. - Average total MAUs reached a record-high of 25.38 million, a year-over-year increase of 14.2% [2]. Fiscal Year 2023 Highlights - Total revenues for fiscal year 2023 were RMB1,018.1 million (US$143.4 million), an increase of 3.3$101.6 million), up 4.4% from RMB691.2 million in fiscal year 2022 [3]. - Operating income increased to RMB159.9 million (US$22.5 million) from RMB111.6 million in fiscal year 2022 [3]. - Net income for the year was RMB180.9 million (US$25.5 million), compared to RMB109.8 million in fiscal year 2022 [3]. - Average total MAUs for the year were 23.04 million, a year-over-year increase of 16.0% [3]. Strategic Initiatives - The company is expanding its international presence and diversifying its product portfolio in response to the declining birth rate in China [2]. - The acquisition of intellectual property assets related to "Cosmicrew" is expected to generate significant synergies and expand the company's market reach [2]. - iHuman is enhancing its product offerings by integrating online and offline experiences, such as the combination of physical books and a smart reading pen with its digital apps [2]. Financial Position and Shareholder Returns - iHuman announced a special cash dividend of US$0.02 per ordinary share, or US$0.10 per ADS, reflecting confidence in its long-term growth potential [3][4]. - The company reported cash and cash equivalents of RMB1,213.8 million (US$171.0 million) as of December 31, 2023, compared to RMB1,050.0 million as of December 31, 2022 [4].