Tanwan (9890) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 25.5% YoY to RMB4,158.2m, while net profit rose to RMB1,560.2m from RMB44.0m, largely driven by RMB1,803.1m in FVTPL fair value gains.

• Overseas revenue grew 33.6% to RMB833.1m and rose to 20.0% of total revenue; strategy centers on global game publishing, mini-programs and AI deployment.

Financial highlights

• Revenue was RMB4,158.2m versus RMB5,580.1m in 2024; self-run game revenue declined to RMB2,766.7m from RMB4,118.8m, while joint-run revenue was RMB1,284.8m versus RMB1,329.8m.

• Gross profit fell 41.0% YoY to RMB2,373.9m; selling and distribution expenses decreased 46.7% to RMB1,875.9m, while cost of sales increased 14.7% to RMB1,784.3m.

• Profit before tax was RMB1,968.9m versus RMB98.4m; net profit was RMB1,560.2m versus RMB44.0m, partly offset by RMB408.7m income tax expense.

• Other income and gains reached RMB1,882.3m, including RMB1,803.1m FVTPL fair value gains; excluding this material gain, reported profit growth would be substantially less representative of recurring operations.

Outlook and guidance

• Priorities include expanding global distribution, adapting games to local markets, refining marketing and long-term operations, and applying AI to R&D, content production and player services.

• A diverse game pipeline is slated for sequential launches, including Soul Land, Yulgang, Legend and Jin Yong Martial Arts titles, plus Space Hunter: Awakening and Dreamscape Warrior.

• Over 30 multilingual games are operating across 11 language versions; more than ten overseas titles are in reserve for future launches.