[Company Overview](index=1&type=section&id=Company%20Overview) This section provides an overview of the company's financial performance, operational highlights, and strategic outlook across its game and platform businesses [Financial Highlights](index=1&type=section&id=Financial%20Highlights) XD Inc. achieved significant financial growth for the six months ended June 30, 2025, with revenue increasing by 38.8% year-on-year and profit attributable to owners of the company surging by 268.0% For the Six Months Ended June 30 Financial Highlights | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,081,986 | 2,220,567 | 38.8 | | Gross Profit | 2,252,758 | 1,496,811 | 50.5 | | Profit for the Period | 810,596 | 250,579 | 223.5 | | Profit for the Period Attributable to Owners of the Company | 754,856 | 205,102 | 268.0 | | Adjusted Profit for the Period* | 852,855 | 278,811 | 205.9 | | Adjusted Profit for the Period Attributable to Owners of the Company* | 795,650 | 237,290 | 235.3 | For the Six Months Ended June 30 Operating Data | Indicator | 2025 (thousand people) | 2024 (thousand people) | Change (%) | | :--- | :--- | :--- | :--- | | **Online Games** | | | | | Average MAU(1) | 11,409 | 9,534 | 19.7 | | Average MPU(2) | 1,322 | 1,092 | 21.1 | | **TapTap** | | | | | TapTap China App Average MAU | 43,625 | 43,242 | 0.9 | | TapTap International App Average MAU | 5,020 | 5,066 | -0.9 | [Business Review and Outlook](index=3&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2025, the company's game and platform businesses achieved significant growth, driven by strong performance of key games and improved advertising algorithms on the TapTap platform - In the first half of 2025, the company's business continued to grow, with significant year-on-year increases in both revenue and operating profit[7](index=7&type=chunk) - Game business revenue increased by **39.4% year-on-year**, primarily driven by the strong performance of 'Ragnarok M: Origin', 'XD Town', and 'Torchlight: Infinite'[7](index=7&type=chunk) - TapTap platform business revenue achieved a **37.6% year-on-year growth**, benefiting from improved advertising algorithms and enhanced user engagement[7](index=7&type=chunk) [Game Business](index=3&type=section&id=我們的遊戲) The company's game business revenue grew by 39.4% in the first half of 2025, with an existing portfolio of 23 online games and 39 paid games - As of June 30, 2025, the company's existing game portfolio includes **23 online games** and **39 paid games**[8](index=8&type=chunk) [Online Games](index=3&type=section&id=網絡遊戲) Average monthly active users and average monthly paying users for online games increased by 19.7% and 21.1% year-on-year, respectively, primarily driven by new users attracted by the newly launched 'XD Town' - Average monthly active users for online games increased by **19.7% year-on-year**, and average monthly paying users increased by **21.1% year-on-year**, mainly driven by new users attracted by 'XD Town'[9](index=9&type=chunk) - 'Go! Muffin' has been launched in major global markets and is in its mature phase; 'XD Town' is highly popular in mainland China and is planned for future overseas launch[9](index=9&type=chunk)[11](index=11&type=chunk) - 'Ragnarok M: Origin' performed well and is planned for launch in other overseas markets in the second half of 2025; 'Torchlight: Infinite' continues to expand its player base through seasonal updates[11](index=11&type=chunk) [Key Games Under Development](index=4&type=section&id=在研的主要遊戲) The company considers self-developed games a core driver, continuously investing in R&D, with game R&D personnel increasing to 745 as of June 30, 2025 - The company considers self-developed games as one of its core drivers for development, continuously investing in R&D[10](index=10&type=chunk) - As of June 30, 2025, **745 employees** were engaged in game R&D, an increase of 21 from December 31, 2024[10](index=10&type=chunk) - Currently, one online game is under development, with several new games in pre-development[10](index=10&type=chunk) [Paid Games](index=5&type=section&id=付費遊戲) Paid game revenue increased by 14.2% year-on-year, primarily driven by 'Hero's Adventure' and 'Totally Accurate Battle Simulator' mobile games - In the first half of 2025, paid game revenue increased by **14.2%** compared to the same period last year[12](index=12&type=chunk) - 'Hero's Adventure' and 'Totally Accurate Battle Simulator' mobile games drove the overall performance[12](index=12&type=chunk) - Plans include increasing investment in TapTap PC to enrich the platform ecosystem, with 'Volcano Princess' mobile and PC versions and the upcoming dual-platform version of 'Dave the Diver' to be launched in the second half of the year[12](index=12&type=chunk) [TapTap Platform](index=5&type=section&id=TapTap) The TapTap platform is the company's core competitiveness, achieving continuous revenue growth by offering high-quality exclusive content, improving advertising algorithms, and enhancing user engagement - The TapTap platform is one of the company's core competencies and drivers, propelling user growth and revenue through high-quality content, products, and operational advantages[13](index=13&type=chunk) [TapTap China Version](index=5&type=section&id=TapTap%E4%B8%AD%E5%9C%8B%E7%89%88) TapTap China App's average MAU increased by 0.9% year-on-year to 43.6 million, with improved user engagement - TapTap China App's average MAU was **43.6 million**, a year-on-year increase of **0.9%**, with improved user engagement[14](index=14&type=chunk) - Revenue growth for TapTap was driven by upgrading the advertising system's underlying model, which enhanced advertising effectiveness on the platform[14](index=14&type=chunk) - TapTap PC and TapTap mini-games were officially launched, and an AI assistant module was added to TapTap to explore interactive game recommendations[14](index=14&type=chunk)[15](index=15&type=chunk) [TapTap International Version](index=6&type=section&id=TapTap%E5%9C%8B%E9%9A%9B%E7%89%88) TapTap International App's average monthly active users decreased by 0.9% year-on-year to 5.0 million - TapTap International App's average monthly active users were **5.0 million**, a year-on-year decrease of **0.9%**[16](index=16&type=chunk) - The international team is exploring long-term growth opportunities with limited resource investment and has not yet monetized TapTap International[16](index=16&type=chunk)[24](index=24&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) This section details the company's financial performance, including revenue, costs, profits, and key expense categories, for the reporting period [Revenue](index=6&type=section&id=Revenue) For the six months ended June 30, 2025, the company's total revenue increased by 38.8% year-on-year to RMB 3,082.0 million, primarily from game business (67.2%) and TapTap platform business (32.8%) - Revenue primarily derived from game operations (online games and paid games) and online promotion services provided by the TapTap platform[17](index=17&type=chunk) Revenue Breakdown by Business Line | Business Line | 2025 Amount (RMB thousand) | 2025 Percentage of Revenue (%) | 2024 Amount (RMB thousand) | 2024 Percentage of Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Games | 2,071,260 | 67.2 | 1,486,257 | 66.9 | | Game Operations | 2,045,113 | 66.4 | 1,481,074 | 66.7 | | Online Games | 1,982,085 | 64.4 | 1,425,896 | 64.2 | | Paid Games | 63,028 | 2.0 | 55,178 | 2.5 | | Others | 26,147 | 0.8 | 5,183 | 0.2 | | TapTap Platform | 1,010,726 | 32.8 | 734,310 | 33.1 | | Total Revenue | 3,081,986 | 100.0 | 2,220,567 | 100.0 | [Game Revenue](index=7&type=section&id=遊戲) Game business revenue increased by 39.4% year-on-year to RMB 2,071.3 million - Game business revenue increased by **39.4%** year-on-year to **RMB 2,071.3 million**[20](index=20&type=chunk) - Online game revenue increased by **39.0%** year-on-year to **RMB 1,982.1 million**, primarily from self-developed games 'Ragnarok M: Origin', 'XD Town', and 'Torchlight: Infinite'[22](index=22&type=chunk) - Paid game revenue increased by **14.2%** year-on-year to **RMB 63.0 million**, mainly from 'Hero's Adventure' and other newly launched paid games[22](index=22&type=chunk) [TapTap Platform Revenue](index=8&type=section&id=TapTap%E5%B9%B3%E5%8F%B0) TapTap platform business revenue increased by 37.6% year-on-year to RMB 1,010.7 million, primarily due to improved advertising algorithms and enhanced user engagement - TapTap platform business revenue increased by **37.6%** year-on-year to **RMB 1,010.7 million**[23](index=23&type=chunk) - The increase in revenue was mainly due to improved advertising algorithms and enhanced user engagement[23](index=23&type=chunk) - The company has not yet monetized TapTap International[24](index=24&type=chunk) [Cost of Revenue](index=8&type=section&id=收入成本) For the six months ended June 30, 2025, cost of revenue increased by 14.6% year-on-year to RMB 829.2 million - Cost of revenue increased by **14.6%** year-on-year to **RMB 829.2 million**[25](index=25&type=chunk) Cost of Revenue by Business Line | Business Line | 2025 Amount (RMB thousand) | 2025 Percentage of Segment Revenue (%) | 2024 Amount (RMB thousand) | 2024 Percentage of Segment Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Games | 663,812 | 32.0 | 595,409 | 40.1 | | TapTap Platform | 165,416 | 16.4 | 128,347 | 17.5 | | Total | 829,228 | 26.9 | 723,756 | 32.6 | - The increase in game business cost of revenue was mainly due to higher commissions paid to payment and distribution channels from increased revenue from 'XD Town' and 'Torchlight: Infinite'[28](index=28&type=chunk) - The increase in TapTap platform business cost of revenue was primarily due to higher bandwidth and server hosting fees related to the advertising algorithm system[29](index=29&type=chunk) [Gross Profit and Gross Margin](index=9&type=section&id=毛利及毛利率) Gross profit increased by 50.5% year-on-year to RMB 2,252.8 million, with gross margin rising to 73.1% - Gross profit increased by **50.5%** year-on-year to **RMB 2,252.8 million**[30](index=30&type=chunk) - Gross margin was **73.1%**, higher than **67.4%** in the prior period[30](index=30&type=chunk) - The improvement in gross margin was mainly due to the strong performance of 'Ragnarok M: Origin' in overseas markets, increased contribution from game operation revenue recognized on a net basis, and improved gross margin for the TapTap platform segment[30](index=30&type=chunk) [Selling and Marketing Expenses](index=9&type=section&id=銷售及營銷開支) Selling and marketing expenses increased by 7.0% year-on-year to RMB 743.9 million, primarily due to increased performance-based compensation for sales and marketing personnel and higher professional and technical service fees - Selling and marketing expenses increased by **7.0%** year-on-year to **RMB 743.9 million**[31](index=31&type=chunk) - This was primarily due to increased performance-based compensation for sales and marketing personnel, and higher professional and technical service fees[31](index=31&type=chunk) [Research and Development Expenses](index=9&type=section&id=研發開支) R&D expenses increased by 30.8% year-on-year to RMB 548.9 million, mainly due to increased performance-based compensation for R&D personnel and higher professional and technical service fees - R&D expenses increased by **30.8%** year-on-year to **RMB 548.9 million**[33](index=33&type=chunk) - This was primarily due to increased performance-based compensation for R&D personnel, and higher professional and technical service fees[33](index=33&type=chunk) - The number of R&D personnel increased from **997** as of June 30, 2024, to **1,033** as of June 30, 2025[33](index=33&type=chunk) [General and Administrative Expenses](index=10&type=section&id=一般及行政開支) General and administrative expenses decreased by 8.9% year-on-year to RMB 126.0 million, primarily due to a reduction in share-based compensation expenses, partially offset by increased performance-based compensation for management and administrative personnel - General and administrative expenses decreased by **8.9%** year-on-year to **RMB 126.0 million**[34](index=34&type=chunk) - This was primarily due to a reduction in share-based compensation expenses, partially offset by increased performance-based compensation for management and administrative personnel[34](index=34&type=chunk) [Net Other Gains](index=10&type=section&id=其他收益%E6%B7%A8%E9%A1%8D) Net other gains decreased, with net exchange gains falling from RMB 11.8 million to RMB 9.9 million, and no gain on repurchase of convertible bonds this period - Net exchange gains decreased from **RMB 11.8 million** in the prior period of 2024 to **RMB 9.9 million** in 2025[35](index=35&type=chunk) - There was no gain on repurchase of convertible bonds in the first half of 2025, compared to **RMB 5.0 million** recorded in the prior period of 2024[35](index=35&type=chunk) [Income Tax Expense](index=10&type=section&id=所得稅%E9%96%8B%E6%94%AF) Income tax expense increased from RMB 31.5 million in the prior period of 2024 to RMB 70.1 million in 2025, comprising current income tax expense of RMB 67.8 million and deferred income tax expense of RMB 2.3 million - Income tax expense increased from **RMB 31.5 million** in the prior period of 2024 to **RMB 70.1 million** in 2025[36](index=36&type=chunk) - This includes current income tax expense of **RMB 67.8 million** and deferred income tax expense of **RMB 2.3 million**[36](index=36&type=chunk) [Profit for the Period](index=10&type=section&id=期內%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, profit for the period significantly increased to RMB 810.6 million, compared to RMB 250.6 million in the prior period of 2024 - Profit for the period was **RMB 810.6 million**, a substantial increase compared to **RMB 250.6 million** in the prior period of 2024[37](index=37&type=chunk) [Profit for the Period Attributable to Owners of the Company](index=11&type=section&id=本公司%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, profit for the period attributable to owners of the company was RMB 754.9 million, a substantial increase of 268.0% from RMB 205.1 million in the prior period of 2024 - Profit for the period attributable to owners of the company was **RMB 754.9 million**, an increase of **268.0%** from **RMB 205.1 million** in the prior period of 2024[38](index=38&type=chunk) [Other Financial Information](index=11&type=section&id=其他%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) Operating profit significantly increased to RMB 861.4 million, with EBITDA and adjusted EBITDA also showing substantial growth, reflecting improved operational efficiency Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Operating Profit | 861,361 | 270,513 | | EBITDA | 874,722 | 291,022 | | Adjusted EBITDA | 916,981 | 319,254 | [Non-IFRS Measures](index=12&type=section&id=非%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The company uses Non-IFRS measures (such as adjusted profit for the period and adjusted profit attributable to owners of the company) to assess core operational performance more clearly by excluding the impact of fair value changes in long-term investments and share-based compensation expenses - The company uses Non-IFRS measures to assess core operational performance, excluding the impact of fair value changes in long-term investments measured at fair value through profit or loss and share-based compensation expenses[40](index=40&type=chunk) Reconciliation of Adjusted Profit for the Period | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 810,596 | 250,579 | | Add: Share-based Compensation Expenses | 42,259 | 28,232 | | Adjusted Profit for the Period | 852,855 | 278,811 | Reconciliation of Adjusted Profit for the Period Attributable to Owners of the Company | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 754,856 | 205,102 | | Add: Share-based Compensation Expenses | 40,794 | 32,188 | | Adjusted Profit for the Period Attributable to Owners of the Company | 795,650 | 237,290 | [Liquidity and Capital Resources](index=13&type=section&id=Liquidity%20and%20Capital%20Resources) This section outlines the company's cash position, short-term investments, and gearing ratio, reflecting its financial stability and resource management [Cash Position and Short-Term Investments](index=13&type=section&id=流動資金%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the company's total cash and short-term investments increased to RMB 3,182.5 million, primarily due to net cash flow generated from operating activities Cash Position and Short-Term Investments | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,971,628 | 2,781,173 | | Short-Term Investments | 210,848 | 128,984 | | Total | 3,182,476 | 2,910,157 | - The increase in cash position and short-term investments was mainly due to **net cash flow of RMB 637.5 million** generated from operating activities for the six months ended June 30, 2025[44](index=44&type=chunk) - As of June 30, 2025, the company had no borrowings or unutilized bank facilities[45](index=45&type=chunk) [Gearing Ratio](index=13&type=section&id=資產%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the company's gearing ratio was 28.9%, an improvement from 30.8% as of December 31, 2024, indicating a more robust financial structure - As of June 30, 2025, the gearing ratio was **28.9%**, an improvement compared to **30.8%** as of December 31, 2024[46](index=46&type=chunk) [Condensed Consolidated Financial Statements](index=14&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated statements of comprehensive income and financial position, offering a summary of its financial health and performance [Condensed Consolidated Statement of Comprehensive Income](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The condensed consolidated statement of comprehensive income shows significant growth in revenue, gross profit, and profit for the period for the six months ended June 30, 2025 Summary of Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,081,986 | 2,220,567 | | Gross Profit | 2,252,758 | 1,496,811 | | Operating Profit | 861,361 | 270,513 | | Profit for the Period | 810,596 | 250,579 | | Profit for the Period Attributable to Owners of the Company | 754,856 | 205,102 | | Basic Earnings Per Share (RMB) | 1.57 | 0.43 | | Diluted Earnings Per Share (RMB) | 1.54 | 0.43 | [Condensed Consolidated Statement of Financial Position](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The condensed consolidated statement of financial position shows that as of June 30, 2025, total assets increased to RMB 4,510.8 million and total equity to RMB 3,206.8 million Summary of Condensed Consolidated Statement of Financial Position | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 4,510,758 | 3,923,201 | | Non-Current Assets | 500,174 | 576,522 | | Current Assets | 4,010,584 | 3,346,679 | | Trade Receivables | 743,557 | 333,413 | | Cash and Cash Equivalents | 2,971,628 | 2,781,173 | | Total Equity | 3,206,757 | 2,714,619 | | Total Liabilities | 1,304,001 | 1,208,582 | [Notes to the Financial Statements](index=18&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the company's accounting policies, segment information, and other financial disclosures, offering deeper insights into its financial reporting [General Information](index=18&type=section&id=General%20Information) XD Inc. is an investment holding company incorporated in the Cayman Islands, with its shares listed on the Hong Kong Stock Exchange - XD Inc. was incorporated on January 25, 2019, under the laws of the Cayman Islands and listed on The Stock Exchange of Hong Kong Limited on December 12, 2019[52](index=52&type=chunk) - The company and its subsidiaries are primarily engaged in the development, operation, publishing, and distribution of mobile and web games, as well as the operation of the game community and platform TapTap, in China and other countries and regions[52](index=52&type=chunk) [Basis of Preparation](index=18&type=section&id=Basis%20of%20Preparation) These interim financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and should be read in conjunction with the group's annual consolidated financial statements for the year ended December 31, 2024 - These interim financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'[53](index=53&type=chunk) - The interim financial statements should be read in conjunction with the group's annual consolidated financial statements for the year ended December 31, 2024, which were prepared in accordance with International Financial Reporting Standards[53](index=53&type=chunk) [Significant Accounting Policies Information](index=19&type=section&id=Significant%20Accounting%20Policies%20Information) Except for income tax estimates and IAS 21 (amended), the accounting policies adopted in these interim financial statements are largely consistent with those used for the 2024 financial statements - Except for income tax estimates and IAS 21 (amended), the accounting policies adopted in these interim financial statements are largely consistent with those used for the preparation of the 2024 financial statements[54](index=54&type=chunk) - IAS 21 (amended) 'Lack of Exchangeability' will not have a significant impact on the interim financial statements[55](index=55&type=chunk) - The company is assessing the extensive impact of IFRS 18 'Presentation and Disclosure in Financial Statements' on the presentation and disclosure of financial statements[55](index=55&type=chunk)[57](index=57&type=chunk) [Segment Information and Revenue](index=20&type=section&id=Segment%20Information%20and%20Revenue) The company has two operating segments, Game and TapTap Platform, whose performance is assessed by the chief operating decision-maker based on segment revenue, cost of revenue, and gross profit - The company has two operating segments, Game and TapTap Platform, whose performance is assessed by the chief operating decision-maker based on segment revenue and cost of revenue[58](index=58&type=chunk)[59](index=59&type=chunk) Segment Information for the Six Months Ended June 30, 2025 | Segment | Total Revenue (RMB thousand) | Cost of Revenue (RMB thousand) | Gross Profit (RMB thousand) | Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Game Segment | 2,071,260 | (663,812) | 1,407,448 | 68 | | TapTap Platform Segment | 1,010,726 | (165,416) | 845,310 | 84 | | Total | 3,081,986 | (829,228) | 2,252,758 | 73 | Game Operation Revenue by Geographical Region | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,029,406 | 862,829 | | Other Regions | 1,015,707 | 618,245 | | Total | 2,045,113 | 1,481,074 | [Breakdown of Expenses](index=24&type=section&id=Breakdown%20of%20Expenses) For the six months ended June 30, 2025, the company's total expenses were RMB 2,251.4 million Breakdown of Expenses for the Six Months Ended June 30 | Expense Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Employee Benefit Expenses | 698,000 | 537,378 | | Promotion and Advertising Expenses | 610,717 | 633,437 | | Commissions Charged by Payment and Distribution Channels | 331,772 | 303,830 | | Revenue Sharing with Game Developers and Content Owners | 157,168 | 184,852 | | Bandwidth and Server Hosting Fees | 140,201 | 120,092 | | Professional and Technical Service Fees | 118,757 | 78,970 | | Share-based Compensation Expenses | 42,259 | 28,232 | | VAT Input Tax Transfer-out and Surcharges | 35,329 | 12,319 | | Total | 2,251,415 | 1,976,017 | [Other Income](index=25&type=section&id=Other%20Income) For the six months ended June 30, 2025, total other income was RMB 17.2 million, primarily from government grants, which significantly increased from RMB 5.4 million in the prior period of 2024 to RMB 16.9 million Other Income for the Six Months Ended June 30 | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 16,858 | 5,440 | | Interest Income from Short-Term Investments Measured at Amortized Cost | 329 | — | | Total | 17,187 | 5,440 | [Net Other Gains](index=25&type=section&id=其他收益%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, net other gains were RMB 13.6 million, a decrease from RMB 20.5 million in the prior period of 2024, mainly due to reduced net exchange gains and no gain on repurchase of convertible bonds this period Net Other Gains for the Six Months Ended June 30 | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Exchange Gains | 9,854 | 11,830 | | Fair Value Change of Wealth Management Products Issued by Commercial Banks | 1,104 | 1,861 | | Net Gain on Repurchase of Convertible Bonds | — | 4,975 | | Others | 2,645 | 1,857 | | Total | 13,603 | 20,523 | [Net Finance Income](index=26&type=section&id=Net%20Finance%20Income) For the six months ended June 30, 2025, net finance income significantly increased to RMB 18.4 million, compared to RMB 2.8 million in the prior period of 2024 Net Finance Income for the Six Months Ended June 30 | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 22,661 | 18,381 | | Interest Expense on Lease Liabilities | (3,728) | (4,283) | | Bank Charges | (544) | (908) | | Interest Expense on Convertible Bonds | — | (8,701) | | Interest Expense on Borrowings | — | (1,715) | | Net Finance Income | 18,389 | 2,774 | [Income Tax Expense](index=26&type=section&id=所得稅%E9%96%8B%E6%94%AF) Income tax expense increased from RMB 31.5 million in the prior period of 2024 to RMB 70.1 million in 2025 - Hong Kong profits tax rate is **16.5%**, and Singapore profits tax rate is **17%**[79](index=79&type=chunk)[80](index=80&type=chunk) - PRC subsidiaries qualify as "High and New Technology Enterprises," enjoying a **15% preferential income tax rate**, and as "Software Enterprises," benefiting from tax holidays and halved tax rates[81](index=81&type=chunk) - Enterprises engaged in R&D activities are entitled to claim **200%** of their R&D expenses as deductible tax expenses[81](index=81&type=chunk) - The company does not intend to declare dividends to its directly foreign-invested entities in the foreseeable future, thus no deferred tax liability for withholding tax has arisen as of June 30, 2025[83](index=83&type=chunk) Income Tax Expense for the Six Months Ended June 30 | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax | 67,755 | 3,854 | | Deferred Income Tax | 2,337 | 27,600 | | Total Income Tax Expense | 70,092 | 31,454 | [Earnings Per Share](index=28&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were RMB 1.57 and diluted earnings per share were RMB 1.54, a significant increase from RMB 0.43 per share in the prior period of 2024 Earnings Per Share for the Six Months Ended June 30 | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB thousand) | 754,856 | 205,102 | | Weighted Average Number of Shares in Issue (thousand shares) | 481,286 | 472,092 | | Basic Earnings Per Share (RMB) | 1.57 | 0.43 | | Diluted Earnings Per Share (RMB) | 1.54 | 0.43 | [Trade Receivables](index=29&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables increased significantly to RMB 743.6 million from December 31, 2024 Trade Receivables Breakdown | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Distribution Channels and Game Publishers | 503,173 | 214,598 | | Online Promotion Service Clients | 245,257 | 120,283 | | Less: Impairment Provision | (4,873) | (1,489) | | Total | 743,557 | 333,413 | Ageing Analysis of Trade Receivables | Ageing | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 653,321 | 291,499 | | 3 to 6 Months | 90,531 | 41,300 | | 6 Months to 1 Year | 3,819 | 1,992 | | 1 to 2 Years | 759 | 106 | | Over 2 Years | — | 5 | - The group applies the simplified approach for expected credit loss provisions under IFRS 9, allowing for lifetime expected loss provisions for all trade receivables[89](index=89&type=chunk) [Share Capital](index=32&type=section&id=Share%20Capital) As of June 30, 2025, issued and fully paid share capital was RMB 338 thousand Summary of Share Capital Changes | Item | As of June 30, 2025 (RMB thousand) | As of January 1, 2024 (RMB thousand) | | :--- | :--- | :--- | | Par Value of Shares | 338 | 329 | | Share Premium | 7,278,532 | 7,036,290 | | Shares Held for Share Award Scheme | (107,659) | (6) | - For the six months ended June 30, 2025, **1,988 thousand shares** were issued due to the exercise of share options, increasing share premium by **RMB 50,643 thousand**[95](index=95&type=chunk) - The trustee repurchased a total of **2,243,000 ordinary shares** for a total consideration of **RMB 59.1 million**, recorded as "Shares held for share award scheme"[95](index=95&type=chunk) [Trade Payables](index=33&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables were RMB 229.5 million, primarily related to server hosting, advertising, and revenue sharing payable to game developers - Trade payables were **RMB 229.5 million**, primarily related to server hosting purchase services, advertising, and revenue sharing payable to game developers[97](index=97&type=chunk) Ageing Analysis of Trade Payables | Ageing | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 223,484 | 170,902 | | Over 3 Months | 6,032 | 15,438 | [Other Information](index=34&type=section&id=Other%20Information) This section covers additional corporate information, including dividend policies, share transactions, use of proceeds, and compliance with governance codes [Dividends](index=34&type=section&id=Dividends) The final dividend of HK 40.0 cents per share for the year ended December 31, 2024, was paid on June 30, 2025 - The final dividend of **HK 40.0 cents per share** for the year ended December 31, 2024, was paid on June 30, 2025[100](index=100&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[100](index=100&type=chunk)[103](index=103&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, save for shares purchased by the trustee for the 2024 Restricted Share Unit Scheme, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, save for shares purchased by the trustee for the 2024 Restricted Share Unit Scheme, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[101](index=101&type=chunk) - As of June 30, 2025, the company held no treasury shares[102](index=102&type=chunk) [Use of Proceeds](index=35&type=section&id=Use%20of%20Proceeds) The net proceeds of approximately HKD 1,113.0 million from the April 2021 share placement were fully utilized as of June 30, 2025, with HKD 67.0 million carried forward for potential acquisitions and strategic investments - The net proceeds from the April 2021 share placement were approximately **HKD 1,113.0 million**[104](index=104&type=chunk) - As of June 30, 2025, all net proceeds have been fully utilized, with **HKD 67.0 million** allocated for potential acquisitions and strategic investments[104](index=104&type=chunk) [2024 Restricted Share Unit Scheme](index=36&type=section&id=2024%20Restricted%20Share%20Unit%20Scheme) The company adopted the 2024 Restricted Share Unit Scheme on May 7, 2024, to recognize participants' contributions and encourage talent retention - The company adopted the 2024 Restricted Share Unit Scheme on May 7, 2024, to recognize participants' contributions and encourage and retain talent[105](index=105&type=chunk) - During the reporting period, the trustee purchased a total of **2,243,000 shares** on the Stock Exchange for the scheme, at a total consideration of **HKD 64.2 million**[105](index=105&type=chunk) [No Material Changes](index=36&type=section&id=No%20Material%20Changes) Save as disclosed in this announcement, there were no material changes affecting the group's results requiring disclosure during the reporting period - Save as disclosed in this announcement, there were no material changes affecting the group's results requiring disclosure under paragraphs 32 and 40(2) of Appendix D2 to the Listing Rules during the reporting period[106](index=106&type=chunk) [Events After the Reporting Period](index=36&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the company granted 152,020 share options on July 9, 2025, and 246,262 share options were exercised - On July 9, 2025, the company granted a total of **152,020 share options** to certain eligible participants under the share option scheme[107](index=107&type=chunk) - Subsequent to the reporting period, certain eligible participants exercised **246,262 share options** to subscribe for **246,262 ordinary shares** of the company[108](index=108&type=chunk) - On August 4, 2025, the company's indirect wholly-owned subsidiary purchased **7,086,420 Series B1 preference shares** of MiAO (Cayman) Limited, representing approximately **5.30%** of its issued share capital, for **USD 14,000,000**[109](index=109&type=chunk) [Compliance with Corporate Governance Code](index=37&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code, except for the roles of Chairman and Chief Executive Officer being combined in Mr. Huang Yimeng - The company has complied with all applicable code provisions of the Corporate Governance Code, except for a deviation from code provision C.2.1 of Part 2 of the Corporate Governance Code, which states that the roles of chairman and chief executive officer should be separate[111](index=111&type=chunk) - Mr. Huang Yimeng currently serves as both the Chairman and Chief Executive Officer of the company[112](index=112&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer provides strong and consistent leadership for the group, and that the Board's composition maintains substantial independence[112](index=112&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=38&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) Following specific enquiries by the company, the Directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - The Directors have confirmed their compliance with the Model Code for the six months ended June 30, 2025[114](index=114&type=chunk) [Review of Interim Results by Audit Committee](index=38&type=section&id=Review%20of%20Interim%20Results%20by%20Audit%20Committee) The Audit Committee, together with the auditors, has reviewed the group's unaudited consolidated financial statements for the six months ended June 30, 2025, and discussed matters including accounting principles, risk management, internal controls, and financial reporting - The Audit Committee comprises three members, with Mr. Xin Quandong, who possesses appropriate professional qualifications, serving as chairman[115](index=115&type=chunk) - The Audit Committee, together with the auditors, has reviewed the group's unaudited consolidated financial statements for the six months ended June 30, 2025[115](index=115&type=chunk) - The Audit Committee has also reviewed the accounting principles and practices adopted by the group and discussed matters concerning audit, risk management, internal controls, and financial reporting[115](index=115&type=chunk) [Publication of Interim Results and Interim Report on HKEX and Company Website](index=38&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (2400.hk) - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (2400.hk)[116](index=116&type=chunk) [Definitions](index=38&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in this announcement to ensure clarity and consistency of information - This section provides definitions for key terms and abbreviations used in this announcement, such as "MAU(s) / Monthly Active User(s)", "MMORPG", and "MPU(s) / Monthly Paying User(s)"[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)

Group 1 - Miniso's stock increased by nearly 5% [1] - Lao Pu Gold and Xiaomi Group both rose by 2% [1] - Li Auto, Cha Bai Dao, and Guo Quan saw increases of over 1.5% [1] Group 2 - Bruker experienced a decline of over 13.5% [1] - Hou Shang A Yi fell by nearly 6% [1] - Leap Motor dropped by nearly 3.5% [1] - Pop Mart decreased by nearly 1% [1]

Core Viewpoint - The gaming industry has shown significant recovery in the first half of 2025, with many companies reporting improved financial performance, indicating a return to growth after a challenging period [3][6][26]. Group 1: Company Performance - Seven gaming companies turned losses into profits, while six companies reported profit increases, and one company saw a reduction in losses [3]. - Tencent's gaming revenue reached 1187 billion, growing by 23%, while NetEase's gaming revenue was 468 billion, up by 6.12% [6]. - Century Huatong's net profit is projected to be between 23.9 to 27 billion, marking a growth of 107.2% to 159% [4]. - Heartbeat Company reported a profit of 7.9 billion, an increase of 215% [4]. - Perfect World has turned a profit with a net profit of 4.8 to 5.2 billion, attributed to the success of its game "Zhu Xian World" [10]. Group 2: Industry Trends - The overall gaming market in China grew by 14.08% year-on-year, the highest growth rate in nearly five years [6][15]. - The number of approved game licenses has increased, with 946 licenses issued in the first seven months of the year, a 19.29% increase [15][19]. - The gaming sector is experiencing renewed investor interest, with gaming stocks outperforming other industries, and a gaming ETF rising over 38% this year [8][12]. Group 3: Government Support - Various local governments have introduced policies to support the gaming industry, including financial incentives for original games and technology innovation [19][23]. - The central government has recognized the cultural significance of games, leading to increased support for the industry [17][19]. Group 4: Future Outlook - The gaming industry is expected to continue its upward trajectory, with new high-quality projects being developed and a focus on diverse game types [20][25]. - The recovery of confidence in the industry is evident, with companies increasing R&D investments and launching promising new titles [20][25].

格隆汇8月19日丨心动公司(02400.HK)公告，董事会会议将于2025年8月29日(星期五)举行，藉以(其中包 括)考虑及批准公司及其附属公司截至2025年6月30日止6个月中期业绩及其发布，并考虑建议派发中期 股息(如有)。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 XD Inc. 心动有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2400） 董事會會議通告 心动有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會會議將於2025年 8月29日（星期五）舉行，藉以（其中包括）考慮及批准本公司及其附屬公司截至 2025年6月30日止六個月之中期業績及其發佈，並考慮建議派發中期股息（如有）。 承董事會命 心動有限公司 主席兼首席執行官 黃一孟 中國上海，2025年8月19日 於本公告日期，董事會由執行董事黃一孟先生、戴雲傑先生及樊舒暘先生；非執行董事吳萌 先生；及獨立非執行董事裴大鵬先生、辛全東先生及劉千里女士組成。 ...

Core Viewpoint - Xindong Company (02400) has announced a positive earnings forecast, expecting significant revenue and profit growth for the first half of 2025, driven by strong performance from self-developed games [1] Group 1: Financial Performance - Xindong Company anticipates revenue of no less than RMB 30.5 billion for the first half of 2025, representing an approximate year-on-year increase of 37% [1] - The expected net profit is projected to be no less than RMB 7.9 billion, indicating a year-on-year increase of about 215% [1] Group 2: Game Development and Releases - The revenue growth is primarily attributed to the strong performance of self-developed games such as "Ragnarok M: Origins," "Xindong Town," and "Torchlight: Infinite" [1] - The company’s upcoming RPG "Iser" is set to enter global open beta testing on September 25, with a final paid test scheduled from August 28 to September 8 [1] - "Iser" has already launched its international version on June 5, ranking in the top 50 in sales across 30 countries and regions, with first-month revenue expected to exceed RMB 100 million [1] - The domestic version is planned for release on September 25, with potential market expansions in Hong Kong, Macau, Taiwan, Japan, and South Korea [1]

Core Viewpoint - Xindong Company (02400) has announced a positive earnings forecast, expecting significant revenue and profit growth for the first half of 2025, driven by strong performance from self-developed games [1] Financial Performance - Xindong Company anticipates revenue of no less than RMB 30.5 billion for the first half of 2025, representing an approximate year-on-year increase of 37% [1] - The expected net profit is no less than RMB 7.9 billion, reflecting a year-on-year increase of about 215% [1] Game Development and Launches - The revenue growth is primarily attributed to the strong performance of self-developed games such as "Ragnarok M: Beginning," "Xindong Town," and "Torchlight: Infinite," which have improved the company's gross margin [1] - The company’s RPG "Iser" is set to enter global open beta testing on September 25, with a final test phase scheduled from August 28 to September 8, 2023 [1] - "Iser" has already launched its international version on June 5, entering the top 50 in the sales charts in 30 countries and regions, with expected revenue exceeding RMB 100 million in its first month [1] Market Expansion - The company plans to gradually expand into the Chinese, Hong Kong, Macau, Taiwan, Japan, and South Korea markets, with promising performance anticipated to continue [1]

Group 1 - The report maintains an "outperform" rating for the media sector, highlighting the importance of performance and the potential opportunities in AI applications and IP trends [3][6]. - In July 2025, the media sector (Shenwan Media Index) rose by 3.18%, underperforming the CSI 300 Index by 0.37 percentage points, ranking 18th among 31 industries [4][17]. - The current TTM-PE for the Shenwan Media Index is 44.9x, placing it in the 93rd percentile over the past five years, indicating a relatively high valuation [17][22]. Group 2 - The gaming market showed sustained growth in the first half of 2025, with a total revenue of 168 billion yuan, representing a year-on-year increase of 14.08% [33]. - From January to July 2025, 946 game licenses were issued, a 19.1% increase year-on-year, with July alone seeing over 100 domestic game licenses approved [4][24]. - The overseas revenue for self-developed Chinese games reached 9.5 billion USD in the first half of 2025, marking an 11.1% year-on-year growth, with the US, Japan, and South Korea being the primary markets [34][42]. Group 3 - The film market in July 2025 saw a total box office of 4.067 billion yuan, a decline of 24.4% year-on-year, although it experienced a month-on-month increase of 113.7% [52][57]. - The film "Nanjing Photo Studio" performed well, contributing positively to the box office in August, despite its late July release [57][60]. - The number of film registrations has shown a significant increase of 60% year-on-year since 2023, indicating a potential recovery in quality content supply starting in 2025 [60][64]. Group 4 - The WAIC conference showcased rapid advancements in embodied intelligence, with over 150 humanoid robots presented, highlighting significant breakthroughs in the field [75][82]. - The AIGC application DeepSeek topped the user growth chart with 163 million monthly active users, indicating strong market appeal [83][84]. - The Kimi K2 high-speed model was released, significantly increasing output speed from 10 tokens per second to 40 tokens per second, enhancing its application in real-time scenarios [87][92].

Core Viewpoint - The company expects significant revenue and profit growth in the first half of 2025, indicating strong operational performance and market confidence [1] Financial Performance - The company anticipates revenue of no less than 3.05 billion yuan in the first half of 2025, representing an approximate 37% increase from 2.22 billion yuan in the same period last year [1] - The projected net profit is expected to be at least 790 million yuan, which reflects a year-on-year growth of about 215% from 251 million yuan [1] Market Response - The company's stock price has increased nearly tenfold from its low point, suggesting positive market sentiment and investor confidence in the company's future prospects [1] - The company emphasizes that stock price fluctuations are influenced by multiple factors, and it remains focused on enhancing operational quality and core competitiveness [1] Strategic Focus - The company is committed to steady operations and high-quality development, aiming to deliver tangible results to shareholders and share the long-term value generated from its growth [1] - The company expresses gratitude for investor attention and aims to improve market recognition of its intrinsic value [1]

Core Viewpoint - Xindong Company (02400) has experienced a nearly 4% increase in stock price, attributed to a positive earnings forecast, with expected revenue and net profit for the first half of the year being at least 3.05 billion and 790 million respectively [1] Group 1: Earnings Forecast - Xindong Company has issued an earnings surprise, leading to market optimism regarding its financial performance [1] - The company anticipates revenue of no less than 3.05 billion and net profit of at least 790 million for the first half of the year [1] Group 2: Future Business Opportunities - The upcoming launch of "Ise: Reboot Day" on September 25 in China, Japan, and South Korea, along with the overseas debut of "Xindong Town," presents potential for improved business performance [1] - The self-developed games are entering a realization phase, and the potential for market expansion is being validated [1] Group 3: TapTap Platform Performance - TapTap platform has shown robust growth, with Daily Active Users (DAU) increasing by 11% over the past 12 months, total game downloads rising by 16%, and game reservations up by 10% [1] - The operational leverage effect is expected to drive steady profit margin improvements, with anticipation for the desktop version to further expand TapTap's market space [1]