QINGCI GAMES(HK:06633)2026-03-26 10:10Financial Performance - For the fiscal year ending December 31, 2025, the company reported total revenue of RMB 456,077,000, a decrease of 27% compared to RMB 627,962,000 in 2024[3]. - Gross profit for the same period was RMB 261,287,000, down 28% from RMB 363,115,000 in 2024[3]. - Net profit increased significantly to RMB 123,339,000, up 162% from RMB 47,128,000 in 2024[3]. - The company recorded a revenue of RMB 456 million, a decrease of 27% year-on-year, while net profit increased by 162% to RMB 123.34 million[15]. - Gross profit decreased by 28.0% to approximately RMB 261.3 million for the year ending December 31, 2025, with a gross margin of 57.3%, remaining relatively stable compared to 57.8% in the previous year[49]. - Operating profit increased significantly to RMB 125,868,000 in 2025, compared to RMB 42,392,000 in 2024, representing a growth of 196.5%[75]. - The company reported a basic earnings per share of RMB 0.18 for 2025, compared to RMB 0.07 in 2024, reflecting a growth of 157.1%[77]. - The company’s total equity increased to RMB 1,900,058,000 in 2025 from RMB 1,806,821,000 in 2024[80]. - The company’s income from mainland China was RMB 259,115,000 in 2025, down from RMB 352,084,000 in 2024, a decrease of 26.5%[95]. User Engagement Metrics - Average Monthly Active Users (MAU) decreased by 52% to 1,123,000 from 2,360,000 in 2024[5]. - Average Monthly Paying Users (MPU) fell by 39% to 139,000 from 228,000 in 2024[5]. - Monthly active users averaged approximately 1.12 million, down 52.41% year-on-year, while monthly paying users decreased by 38.93% to about 139,100[16]. - The Average Revenue Per Paying User (ARPPU) reached RMB 285.61, an increase of 7.92% year-on-year[16]. - The player community, known as Qingci Iron Fans, grew to 16.24 million by December 31, 2025, reflecting a 2.48% year-over-year increase[30]. Game Development and Releases - The company is actively pursuing a multi-platform publishing strategy to strengthen its competitive edge in diverse market environments[11]. - A significant partnership with Walt Disney (China) was established to develop and publish the game "Disney: Book of Legends," expected to launch in 2026 across multiple regions[19]. - The flagship self-developed game "Strong Snail" celebrated its five-year anniversary in June 2025, with ARPPU increasing from approximately RMB 200 to nearly RMB 300, a growth of about 50%[21]. - The game "Cardcaptor Sakura: Key of Memories" launched in Vietnam, ranking second in the local iOS free game chart and eighth in the iOS game sales chart during the reporting period[21]. - The self-developed strategic game "Project E" is progressing smoothly, with multiple rounds of testing for core players, aiming to become the next milestone product for the company[21]. - The licensed casual game "Neuro Goose" was successfully released on the Steam platform in 2025, selling over 20,000 copies within 48 hours and nearly 50,000 copies in seven days, achieving a global approval rating of over 90%[21]. - The game "Ares Virus 2" launched in August 2024, recorded revenue of approximately RMB 49.02 million during the reporting period[26]. - The game "New Legend of Sword and Fairy" launched in June 2023, recorded revenue of approximately RMB 34.12 million during the reporting period[24]. - The game "Magic Girl Sakura: Key of Memories" recorded revenue of approximately RMB 7.19 million during the reporting period[25]. - The game "Fat Goose Gym" launched in February 2024, recorded revenue of approximately RMB 42.38 million during the reporting period[25]. - As of December 31, 2025, the cumulative registered players for "Unusual Maze" reached approximately 26 million[27]. - The Steam version of "Unusual Maze," launched in March 2025, achieved over 570,000 downloads by the end of February 2026, ranking sixth in the global trending free games chart[27]. - The game generated revenue of approximately RMB 7.75 million during the reporting period[27]. - "Tingus Goose," launched on Steam in December 2025, received over 90% positive reviews and sold 76,000 copies by February 2026[28]. - Other major games contributed approximately RMB 12.08 million in revenue during the reporting period[29]. Market Trends and Strategies - The gaming industry in China is experiencing a healthier development phase, supported by favorable policies and optimized market supply structures[9]. - The global gaming market is projected to reach RMB 1,301.67 billion by 2025, with a year-on-year growth of 7.02%[13]. - The mobile gaming market in China is expected to grow to RMB 257.08 billion, reflecting a year-on-year increase of 7.92%[13]. - The company aims to enhance its global presence by leveraging successful products in the Chinese market for overseas expansion, thereby increasing the long-term value of its IP[8]. - The company is expanding its global distribution matrix by promoting the release of "Cardcaptor Sakura: Key of Memories" in Japan and "The Strong Snail" in South Korea, enhancing its operational capabilities globally[36]. Financial Outlook and Projections - The company's revenue for the fiscal year ending December 31, 2025, is projected to decrease by 27.4% to approximately RMB 456.1 million, down from RMB 628.0 million for the fiscal year ending December 31, 2024[38]. - Revenue from the domestic Chinese market is expected to be RMB 259.1 million, accounting for 56.8% of total revenue, compared to 56.1% in 2024[38]. - Game operation revenue is anticipated to decline by 25.7% to approximately RMB 440.9 million for the fiscal year ending December 31, 2025, primarily due to user attrition from mature games[41]. - Revenue from self-developed games is projected to decrease by 22.6% to approximately RMB 282.8 million, attributed to the maturity of the game "The Strong Snail" and a decline in revenue[44]. - Game licensing revenue is expected to decrease by 50.2% to approximately RMB 5.5 million, mainly due to the transition of "The Strong Snail" from external licensing to in-house operation[41]. - Information services revenue is projected to decline by 66.2% to approximately RMB 5.5 million, primarily due to a decrease in ad views and clicks within games[42]. - Other services and sales revenue is expected to decrease by 41.8% to approximately RMB 4.2 million, driven by declines in commissioned development income and merchandise sales[43]. Cost Management and Efficiency - Sales and marketing expenses decreased by 52.5% to approximately RMB 102.6 million for the year ending December 31, 2025, due to effective operational management and cost control[51]. - R&D expenses remained stable at approximately RMB 104.9 million for the year ending December 31, 2025, compared to RMB 106.1 million in the previous year[52]. - Other income decreased by 49.6% to approximately RMB 3.1 million for the year ending December 31, 2025, primarily due to a reduction in government subsidies[56]. - Employee benefits expenses decreased by 15.6% to approximately RMB 11.9 million for the year ending December 31, 2025, mainly due to a reduction in customer service staff[48]. - Other costs decreased by 40.5% to approximately RMB 22.0 million for the year ending December 31, 2025, attributed to refined management and reduced impairment of prepayments to certain game developers[48]. Corporate Governance and Future Plans - The company maintained compliance with corporate governance codes and has established an audit committee to oversee financial reporting and internal controls[110]. - The company plans to focus on high-quality, innovative content to drive future growth while addressing challenges in product maturity and market competition[31]. - The company plans significant capital investments in 2026, including collaborations with Disney for game releases in Japan and Korea[116]. - The board will review the dividend policy annually and consider measures to enhance shareholder returns, including potential dividends or share buybacks[116]. - The company emphasizes reinvesting profits to support research, innovation, and global expansion as a strategy to maximize shareholder value[116].