XD (2400) H1 2026 earnings summary

Executive summary

• Revenue grew 7.5% year-over-year to RMB3,312.2 million for the six months ended June 30, 2026, driven by strong performance in self-developed games and premium titles.

• Net profit declined 10.6% year-over-year to RMB724.3 million, mainly due to higher costs and increased income tax expenses.

• Adjusted profit, excluding fair value changes and share-based compensation, decreased 8.1% year-over-year to RMB783.5 million.

• Significant investments in AI initiatives, including the launch of TapTap Maker and open-sourcing of the Cindy AI agent, aimed at enhancing operational efficiency and product innovation.

Financial highlights

• Gross profit increased 3.4% year-over-year to RMB2,329.3 million; gross margin declined to 70.3% from 73.1% due to higher costs in the game segment.

• EBITDA was RMB862.7 million, with adjusted EBITDA at RMB921.9 million, both slightly down from the prior year.

• Basic earnings per share was RMB1.49, down from RMB1.57; diluted EPS was RMB1.44, down from RMB1.54.

• No interim dividend declared for the period.

Outlook and guidance

• Continued focus on AI-driven product development and operational transformation.

• Plans to further integrate AI tools across business lines and expand the TapTap ecosystem with cross-device features.

• Ongoing investment in self-developed and premium games to drive future growth.