XD Inc. Issues Positive Profit Alert: Strong Revenue and Profit Growth Expected for FY2025

XD Inc. (Stock Code: 2400) has released a positive profit alert to its shareholders and potential investors, indicating a significant improvement in both revenue and net profit for the financial year ended December 31, 2025.

Key Financial Highlights

• Revenue Surge: The Group expects to record revenue of no less than RMB 5,710 million for FY2025. This represents a robust 13.9% year-on-year increase compared to RMB 5,012.1 million in FY2024.
• Substantial Profit Growth: XD Inc. anticipates a net profit of no less than RMB 1,580 million for FY2025, marking an impressive 77.4% increase from the net profit of RMB 890.5 million reported for FY2024.

Drivers Behind the Strong Performance

• Self-developed Games: The company attributes its strong growth to the robust performance of several key self-developed titles, including Ragnarok M: Classic, Heartopia, and Torchlight: Infinite. Furthermore, the launch of Etheria: Restart in June 2025 has contributed positively to revenue and gross profit margin.
• TapTap Platform: While the average monthly active users (MAUs) of the company’s apps remained stable year-on-year, TapTap recorded significant growth in both revenue and profit. This was driven by enhanced advertising algorithms and higher user engagement.
• Offsetting Factors: There were partially offsetting effects due to a decline in revenue from certain existing games and increased expenses related to performance-based compensation, AI-related technical service fees, and game production outsourcing.

Important Information and Shareholder Considerations

• Unaudited Figures: The financial figures provided are based on the preliminary assessment of the unaudited consolidated management accounts for FY2025. These numbers have not yet been audited or reviewed by the independent auditors or the audit committee and may be subject to adjustments.
• Upcoming Official Results: The official audited results announcement for the year ended December 31, 2025 is expected to be published by the end of March 2026. Investors should monitor for any updates or revisions in the final results.
• Share Price Sensitivity: The substantial increases in both revenue and profit, especially the notable 77.4% jump in net profit, are material and price-sensitive information. These results could have a significant positive impact on the company’s share value, subject to market reaction and confirmation in the official audited results.
• Caution Advised: The company advises shareholders and potential investors to exercise caution when dealing in the company’s securities until the audited results are released.

Board Statement and Company Leadership

The announcement is issued under the authority of Mr. HUANG Yimeng, Chairman and Chief Executive Officer of XD Inc. The Board includes a mix of executive, non-executive, and independent non-executive directors, ensuring a broad governance structure.

Disclaimer: The above article is based on the company’s preliminary profit alert and unaudited management accounts. The final audited figures may differ. Investors are advised to review the company’s official results announcement when it is released and exercise caution when trading the company’s securities.

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