Easou Technology (2550) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 29.4% to RMB781.6m; profit for the year was RMB32.5m versus a RMB2.0m loss in FY2024.

• Growth was led by digital marketing, online reading and online games; AI investment and overseas content and games expansion remained key strategic priorities.

Financial highlights

• Revenue increased 29.4% to RMB781.6m; gross profit rose 26.6% to RMB323.7m, while gross margin eased to 41.4% from 42.3%.

• Profit before tax was RMB33.0m versus a RMB1.0m loss; net income was RMB32.5m versus a RMB2.0m loss.

• Basic and diluted EPS were RMB8.45 cents, compared with a loss of RMB0.65 cents in FY2024.

• Adjusted for the absence of FY2024 listing expenses, administrative expenses declined 46.2% to RMB23.3m; R&D rose 39.3% to RMB50.3m, mainly on higher AI computing costs.

• Fair-value gains on FVTPL assets increased to RMB20.5m from RMB9.4m; net margin was 4.2% versus a 0.3% loss margin in FY2024.

Outlook and guidance

• FY2026 overseas launch plans include no fewer than 20 new games; nine titles completed overseas testing and entered trial operation in FY2025.

• Strategy prioritizes AI integration across recommendation, content creation, marketing and operations, alongside expansion in short dramas, overseas games, RWA and Web3.0.

• Short-drama plans include AI-powered localization and region-specific original content, initially targeting mature European and American markets before broader expansion.