37 Interactive Entertainment Network Technology Group (002555) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was ¥7.27 billion, down 14.28% year-over-year, mainly due to product lifecycle effects and new games still in ramp-up phase.

• Net profit attributable to shareholders rose 26.14% year-over-year to ¥1.77 billion, driven by investment income and cost controls.

• Overseas revenue grew 10.90% year-over-year, now accounting for 41.53% of total revenue.

• Major titles such as “Puzzles & Survival” and “Last Asylum: Plague” maintained strong performance, with new launches contributing to future growth.

Financial highlights

• Operating income: ¥7.27 billion, down 14.28% year-over-year.

• Net profit attributable to shareholders: ¥1.77 billion, up 26.14% year-over-year.

• Basic and diluted EPS: ¥0.80, up 25% year-over-year.

• Operating cash flow: ¥1.09 billion, down 37.89% year-over-year.

• Gross margin for core gaming business: 77.70%.

• R&D investment: ¥391 million, up 15.88% year-over-year.

Outlook and guidance

• Company will continue to focus on “premium, diversified, global” strategy, with emphasis on SLG, MMORPG, and simulation genres.

• Pipeline includes multiple new titles targeting both domestic and international markets.

• Ongoing investment in AI and technology to drive efficiency and product innovation.