XD Inc. — Earnings Release 2024

Mar 4, 2025

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

XD Inc.

心动有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2400)

POSITIVE PROFIT ALERT

This announcement is made by XD Inc. (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholder(s)") and potential investors that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended December 31, 2024 ("FY 2024"), the Group is expected to record (i) a revenue ranging from approximately RMB4,960 million to RMB5,040 million for FY 2024, representing an increase of approximately between 46.3% to 48.7% as compared to the revenue of approximately RMB3,389 million for the year ended December 31, 2023 ("FY 2023"), and (ii) a net profit ranging from approximately RMB860 million to RMB940 million for FY 2024, as compared to a net loss of approximately RMB65 million recorded for FY 2023.

Based on information currently available, the Board believes that the aforementioned expected increases are mainly due to the following reasons: (i) the newly launched self-developed games GoGo Muffin (出發吧麥芬), Sword of Convallaria (鈴蘭之劍) and Heartopia (心動小鎮) have performed well, boosting our revenue and gross profit margin, (ii) TapTap has achieved sustained growth in both revenue and profit, and (iii) partially offsetting effects from (a) the decreases in revenues from certain existing games, and (b) the increase in marketing expenses.

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As of the date of this announcement, the Company is still in the process of finalizing the consolidated results of the Group for FY 2024. The information contained in this announcement is only based on the preliminary assessment by the Board with reference to the information currently available to the Board and the unaudited management accounts of the Group for FY 2024, which have not been audited or reviewed by the Company's independent auditors and/or the audit committee of the Company, and may be subject to adjustments. Shareholders and potential investors are advised to read carefully the results announcement of the Company for FY 2024, which is expected to be published by the end of March 2025.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

XD Inc.

HUANG Yimeng

Chairman and Chief Executive Officer

Shanghai, the PRC, March 4, 2025

As at the date of this announcement, the Board comprises Mr. HUANG Yimeng, Mr. DAI Yunjie and Mr. FAN Shuyang as executive Directors, Mr. WU Meng as non-executive Director and Mr. PEI Dapeng, Mr. XIN Quandong and Ms. LIU Qianli as independent non-executive Directors.

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