Gala Technology Holding (2458) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 18.9% YoY to RMB922.3m and profit for the year increased 13.9% to RMB95.8m, supported by core games and NBA Rivals’ first full-year contribution.

• Cash and cash equivalents were RMB452.5m at year-end; operating cash flow reached RMB198.7m, and there were no bank borrowings.

Financial highlights

• Revenue was RMB922.3m versus RMB775.9m; gross profit increased 15.4% to RMB480.1m, while gross margin eased to 52.1% from 53.6%.

• Profit before tax rose to RMB100.4m from RMB85.5m; profit attributable to owners was RMB95.9m versus RMB84.2m.

• Basic EPS was RMB0.72 versus RMB0.63; diluted EPS was RMB0.70 versus RMB0.63.

• R&D expense increased 16.5% to RMB155.9m; selling and marketing expense rose 10.8% to RMB163.3m.

Outlook and guidance

• 2026 World Cup demand is expected to support Total Football; plans include more content and a PC client launch to expand multi-platform operations.

• Football Champion is targeted for a systematic upgrade, multi-region versions and preparation for standalone releases and independent publishing in key regions.

• Clutch Hit Baseball plans WBC and new MLB-season content, with growth efforts in North America, Asia and Latin America; NBA Rivals will continue iterative updates.

• R&D priorities include human-like in-game AI, more precise Arena4D recreation, high-precision modeling and improved animation and voice generation.