iDreamSky Technology (1119) investor relations material

Executive summary

• Revenue rose 4.7% year-over-year to RMB718.3 million, driven by strong information service growth despite a 27.7% decline in game revenue due to product optimization and legacy game maturity.

• Profit for the period fell to RMB21.2 million from RMB33.0 million year-over-year, with adjusted profit at RMB28.2 million, down from RMB93.1 million.

• The company advanced its dual-engine strategy: overseas high-quality game publishing and self-developed IP, notably Strinova, which saw strong user and ARPU growth.

• AI integration accelerated across R&D, content, and customer service, with efficiency-oriented AI agents and IP-character AI agents deployed to drive operational gains.

• Focus remained on evergreen games, self-developed IPs, and AI integration to sustain long-term growth.

Financial highlights

• Revenue: RMB718.3 million (+4.7% YoY); Game revenue: RMB483.6 million (-27.7% YoY); Information service revenue: RMB234.2 million (+1,623% YoY), now 32.6% of total revenue.

• Gross profit: RMB201.2 million (down from RMB289.5 million YoY); Gross margin declined due to higher-cost information service mix.

• Profit before tax: RMB20.5 million (down from RMB34.7 million YoY); Adjusted profit: RMB28.2 million (down from RMB93.1 million YoY).

• Adjusted EBITDA: RMB94.6 million (down from RMB162.2 million YoY).

• Basic and diluted EPS: RMB0.01 (down from RMB0.02 YoY).

Outlook and guidance

• Multiple new high-quality games are scheduled for launch in H2 2026, including Hustle Castle and several pipeline titles.

• Continued investment in self-developed IP and AI-driven operational enhancements is expected to drive future growth.

• Focus on global expansion and further monetization of Strinova and evergreen games.