Easou Technology (2550) investor relations material

Executive summary

• H1 2026 revenue rose 7.9% YoY to RMB412.4m and gross profit increased 25.5% to RMB187.7m, led by online reading and games publishing; profit for the period fell to RMB4.4m from RMB10.3m.

• AI remained a strategic priority, with R&D spending at RMB27.6m and proposed acquisitions intended to expand games publishing and AI-enabled e-commerce capabilities.

Financial highlights

• Revenue was RMB412.4m vs RMB382.3m; gross profit was RMB187.7m vs RMB149.5m; profit before tax was RMB6.5m vs RMB11.6m.

• Net profit attributable to ordinary equity holders was RMB4.4m; basic and diluted EPS was RMB0.99 cents vs RMB3.16 cents.

• Selling and distribution expenses rose 37.4% to RMB145.6m, mainly on overseas short-drama and game promotion; administrative expenses rose 28.3% to RMB10.7m and R&D expense rose 23.6% to RMB27.6m.

• Income tax expense rose to RMB2.2m from RMB1.3m, mainly from reversal of deferred tax assets as prior-year tax losses were utilized.

• Total comprehensive loss was RMB10.5m, including RMB14.9m of exchange translation losses, versus comprehensive income of RMB12.7m in H1 2025.

Outlook and guidance

• FY2026 overseas games target remains at least 30 new titles; 15 launched in H1, with releases progressing as planned.

• AI priorities include recommendations, AIGC content generation, agent-based operations, commercialization and cost efficiency, while strengthening data security and integrating large models with internal data and business scenarios.

• EaShort plans AI dubbing, localization and overseas distribution; digital music, video and e-commerce are also under evaluation. If Yunlang Technology acquisition completes, AI recommendations and digital-human capabilities could support e-commerce livestreaming.

• RWA and Web3.0 exploration will focus on digital asset rights confirmation and value conversion, combining content, blockchain and physical assets.