XD INC(HK:02400) Ge Long Hui·2025-09-02 11:55Core Viewpoint - The company reported significant growth in revenue and profit for the first half of 2025, driven by strong performance in gaming and the TapTap platform, indicating robust operational capabilities and potential for future growth [1] Financial Performance - The company achieved revenue of 3.082 billion RMB, a year-on-year increase of 38.8% [1] - Gross profit reached 2.253 billion RMB, up 50.5%, with a gross margin of 73.1% [1] - Net profit attributable to shareholders was 755 million RMB, a remarkable increase of 268.0%, resulting in a net profit margin of 24.5% [1] Gaming Business - Gaming revenue totaled 2.071 billion RMB, reflecting a year-on-year growth of 39.4% [1] - Online gaming revenue was 1.982 billion RMB, up 39.0%, primarily driven by self-developed games [1] - The average monthly active users (MAU) increased by 19.7%, and the average paying users (MPU) grew by 21.1% [1] - Key games contributing to revenue included "Out of the Muffin," "Heart Town," and "Ragnarok M," with "Ragnarok M" showing strong performance in overseas markets [1] TapTap Platform - TapTap's advertising revenue was 1.011 billion RMB, a year-on-year increase of 37.6% [1] - The MAU for the Chinese version of TapTap reached 43.6 million, a slight increase of 0.9% [1] - Revenue growth was driven by increased advertiser spending, improved algorithms, and higher ad display frequency [1] Future Outlook - The company has revised its net profit forecasts for 2025-2027 to 1.69 billion, 2.07 billion, and 2.38 billion RMB, reflecting increases of 52.0%, 51.4%, and 69.6% respectively [2] - The company maintains a "buy" rating based on the strong performance of new games and the ongoing updates of existing titles [2]