XD (2400) H2 2025 earnings summary

Executive summary

• Annual revenue reached RMB5.76 billion, up 15% year-over-year; net profit was RMB1.66 billion, up 86% year-over-year; gross margin improved to 73.8%.

• Cash reserves stood at RMB3.77 billion with operating cash flow of RMB1.71 billion.

• Shareholder returns prioritized via a HK$400 million share repurchase program, replacing cash dividends.

• Strategic focus on AI integration, global game launches, and acquisition of key IPs to drive long-term growth.

Financial highlights

• Revenue: RMB5.76 billion (+15% YoY); net profit: RMB1.66 billion (+86% YoY); gross margin: 73.8% (up from 69.4%).

• Game segment revenue: RMB3.80 billion (+10.5% YoY); TapTap platform revenue: RMB1.97 billion (+24.7% YoY).

• Adjusted EBITDA: RMB1.79 billion (+69% YoY); adjusted profit: RMB1.76 billion (+83.7% YoY).

• Cost of revenues decreased by 1.6% YoY; R&D expenses increased by 6.7% YoY; G&A expenses decreased by 20.3% YoY.

• Earnings per share: Basic RMB3.19, Diluted RMB3.07.

Outlook and guidance

• Continued investment in R&D and AI-driven initiatives, including TapTap Maker and AI-assisted game creation.

• Ongoing expansion of premium and cross-platform games, with new global launches planned.

• Focus on further international growth and ecosystem development for TapTap.