Gala Technology Holding (2458) investor relations material

Executive summary

• H1 revenue rose 25.7% YoY to RMB590.4 million, driven by Total Football and NBA Rivals; gross profit increased 32.8% to RMB315.5 million.

• World Cup-linked activity boosted football-game engagement and billings, while baseball and basketball titles expanded across markets.

• Higher marketing reflected tournament investment; H2 priorities include product development, sports-event tie-ins and overseas growth.

• Arena 4D and AI tools supported faster content production and reuse across games and sports-event services.

Financial highlights

• Revenue was RMB590.4 million, up 25.7% YoY; self-published games contributed RMB469.1 million, or 99.9% of revenue.

• Gross profit rose 32.8% to RMB315.5 million; gross margin expanded to 53.4% from 50.6%.

• Cost of revenue rose 18.4% to RMB274.9 million; selling and marketing expenses increased 122.0% to RMB151.3 million on World Cup promotion and user acquisition.

• R&D expenses declined 8.1% to RMB77.5 million, reflecting incentive-payment timing and efficiencies from AI tools and internally developed technology.

• Net income attributable to owners was RMB53.7 million; basic EPS was RMB0.40 and diluted EPS RMB0.39. Net gains on FVTPL investments were RMB76.8 million.

Outlook and guidance

• H2 priorities include product quality and development, sports-event linkages, global expansion, and optimized overseas publishing and localized operations.

• Total Football plans expansion in North America, Latin America and the Middle East, alongside a PC beta launch; Football Champion will expand star and club IP.

• Codename: Fishing Master began a second paid closed beta in late July; overseas paid tests in key markets are expected in H2 2026.

• Clutch Hit Baseball plans MLB playoff and World Series promotions; new casual games are also in development planning.

• AI development targets tournament digitization, improved player tracking and video overlays, and higher-fidelity 3D player content.