XD (2400) H2 2025 earnings summary

Executive summary

• Revenue grew 15.0% year-over-year to RMB5,763.7 million, with gross profit up 22.3% to RMB4,254.6 million and net profit up 86.0% to RMB1,656.5 million for the year ended December 31, 2025.

• Adjusted profit for the year rose 83.6% to RMB1,756.9 million, reflecting strong core operational performance excluding fair value changes and share-based compensation.

• Key growth drivers included robust performance in self-developed games and a 24.7% increase in TapTap platform revenue, supported by improved advertising algorithms and user engagement.

• Strategic acquisition of the Torchlight IP and integration of AI technology positioned the business for long-term growth.

Financial highlights

• Gross margin improved to 73.8% from 69.4% in 2024, driven by higher-margin TapTap platform revenue and increased net-basis game revenue recognition.

• EBITDA rose to RMB1,695.4 million (up from RMB997.2 million), and adjusted EBITDA reached RMB1,787.9 million (up from RMB1,056.4 million).

• Basic EPS increased to RMB3.19 from RMB1.71; diluted EPS was RMB3.07, up from RMB1.69.

• Cash and short-term investments totaled RMB3,770.4 million at year-end, up from RMB2,910.2 million.

Outlook and guidance

• Continued investment in R&D and AI integration, with plans to expand the premium game portfolio and further develop TapTap's cross-platform ecosystem.

• TapTap Maker, an AI game-creation tool, entered invitation testing in early 2026, aiming to lower barriers for game development.