XD (2400) H1 2025 earnings summary

Executive summary

• Revenue grew 38.8% year-over-year to RMB3,082 million for the six months ended June 30, 2025, driven by strong performance in both game and platform segments.

• Net profit surged 223.5% year-over-year to RMB811 million, with adjusted profit up 205.9% to RMB853 million, reflecting robust operational leverage.

• Major titles such as Ragnarok M: Classic, Heartopia, and Torchlight: Infinite contributed significantly to growth in the game segment.

• TapTap platform revenue increased 37.6% year-over-year, supported by improved advertising algorithms and user engagement.

Financial highlights

• Gross profit rose 50.5% year-over-year to RMB2,253 million, with gross margin improving to 73.1%.

• Game segment revenue increased 39.4% to RMB2,071 million; TapTap platform revenue up 37.6% to RMB1,011 million.

• Online games revenue grew 39.0% to RMB1,982 million; premium games revenue up 14.2% to RMB63 million.

• Adjusted EBITDA increased to RMB917 million from RMB319 million year-over-year.

• Basic EPS was RMB1.57, up from RMB0.43 in the prior year period.

• Cash and short-term investments totaled RMB3,182 million as of June 30, 2025.

Outlook and guidance

• Continued investment in evergreen titles and expansion of Heartopia, Ragnarok M: Classic, and TapTap’s PC platform into overseas markets.

• Further development of TapTap PC and Mini Games to enhance cross-platform compatibility and ecosystem growth.

• Upcoming launches of premium games and dual-platform releases are expected to strengthen market position.

• Ongoing focus on R&D and new game launches to sustain growth momentum.