XD INC(HK:02400) Zhi Tong Cai Jing·2025-08-29 05:07Core Insights - The company reported a strong mid-year performance for 2025, achieving a total revenue of 3.082 billion RMB, a year-on-year increase of 38.8%, and a significant profit surge with net profit reaching 811 million RMB, up 223.5% [1][10] Financial Performance - The gross profit increased by 50.5% to 2.253 billion RMB, with the gross margin rising from 67.4% to 73.1% [1][3] - The sales and marketing expenses grew by only 7.0% to 744 million RMB, indicating improved marketing efficiency [4] - Research and development expenses rose by 30.8% to 549 million RMB, reflecting ongoing investment in future product development [4] - General and administrative expenses decreased by 8.9% to 126 million RMB, primarily due to reduced share-based compensation [5] Game Business Performance - The gaming segment generated 2.071 billion RMB in revenue, a 39.4% increase, driven by self-developed games like "Ragnarok M: Beginners" and "Torchlight: Infinite" [6] - The paid game segment also saw a steady growth of 14.2%, supported by new titles contributing to the TapTap platform [6] TapTap Platform Developments - The TapTap platform achieved revenue of 1.011 billion RMB, a 37.6% increase, with a stable average monthly active user (MAU) count of 43.63 million [8] - The company is shifting its focus from "discovering" to "creating" games, with plans to enhance its PC version and introduce mini-games [7][9] - AI applications are being explored to improve platform services, including interactive game recommendations [9][10] Future Outlook - The financial health and cash flow position of the company provide a solid foundation for future growth, with a focus on expanding the TapTap platform's value and service offerings [10]