37 Interactive Entertainment Network Technology Group (002555) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥8.49 billion, down 8.08% year-over-year, mainly due to product lifecycle shifts.

• Net profit attributable to shareholders rose 10.72% year-over-year to ¥1.40 billion, with EPS up 12.28%.

• Overseas revenue accounted for 32.10% of total, with key titles maintaining strong global performance.

• The company advanced its AI-driven R&D and operations, with over 80% of 2D art assets and 70% of ad videos now AI-generated.

• Cash dividend of ¥2.10 per 10 shares was declared, with a payout ratio of 100%.

Financial highlights

• Operating income: ¥8.49 billion, down 8.08% year-over-year.

• Net profit attributable to shareholders: ¥1.40 billion, up 10.72% year-over-year.

• Operating cash flow: ¥1.75 billion, down 17.65% year-over-year.

• Gross margin for mobile games: 77.43%; for web games: 68.74%.

• Total assets: ¥20.57 billion, up 5.04% from year-end 2024.

Outlook and guidance

• The company will continue to focus on high-quality, diversified, and globalized product strategies.

• AI and digitalization will remain core to product development and operational efficiency.

• Ongoing investment in new game launches and IP reserves, with several major titles in the pipeline.