37 Interactive Entertainment Network Technology Group (002555) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 4.24 billion, down 10.67% year-over-year but up 3.45% sequentially.

• Net profit attributable to shareholders was RMB 549 million, down 10.87% year-over-year.

• New games launched in late 2024 and Q1 2025 are in early promotion, while mature titles saw natural revenue decline.

• Product pipeline remains robust with multiple genres and titles in development and licensing progress.

• Company completed a share buyback and cancellation, reducing total shares by 0.25%.

Financial highlights

• Operating cash flow was RMB 583 million, down 50.20% year-over-year due to lower sales receipts.

• Total assets increased 3.84% from year-end 2024 to RMB 20.34 billion.

• Shareholders' equity rose 4.04% to RMB 13.44 billion.

• Basic and diluted EPS were both RMB 0.25, down 10.71% year-over-year.

• Government subsidies and fair value gains contributed to non-recurring profit of RMB 12.7 million.

Outlook and guidance

• Company will continue its strategy of premium, diversified, and globalized products.

• Focus remains on enhancing R&D and publishing capabilities to drive future growth.

• Multiple new games are expected to launch, aiming to broaden market share and improve performance.