Financial

Annual Results Announcement: 2025

Published by XD

Summary

XD Inc. achieved substantial financial growth throughout the 2025 fiscal year, characterized by a 15% increase in total revenue to RMB 5.76 billion and a significant surge in profit attributable to equity holders, which reached RMB 1.54 billion. This performance was underpinned by a 10.5% rise in gaming revenue, bolstered by the success of titles such as Heartopia and Torchlight: Infinite, alongside a 24.7% revenue increase within the TapTap platform. The company’s financial health was further strengthened by an improved gross margin of 73.8% and a robust cash position of RMB 3.77 billion, supported by a strategic reduction in the cost of revenues and a lower gearing ratio of 22.5%. The company’s strategic focus remains centered on cross-platform expansion and the integration of AI-driven development tools to secure long-term competitiveness. While financial metrics showed marked improvement, the company observed a decline in online game user metrics, specifically monthly active users and monthly paying users. To address these shifts, management has prioritized capital optimization through active share repurchases and the maintenance of employee incentive programs. Notably, the board opted against a final dividend for 2025, citing a commitment to capital reinvestment and a need to address corporate governance concerns regarding the consolidation of the chairman and CEO roles. These results reflect a period of operational consolidation and international market penetration for the China-based firm. The financial figures, which have been reviewed by the Audit Committee and aligned with the group’s consolidated statements, demonstrate a transition toward higher profitability and operational efficiency. By leveraging the acquisition of the Torchlight intellectual property and refining advertising algorithms on the TapTap platform, the company aims to sustain its growth trajectory despite the challenges posed by fluctuating user engagement metrics in the broader gaming sector.

From the report

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. XD Inc. 心动有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock code: 2400) ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 ANNUAL RESULTS The Board is pleased to announce the audited consolidated results of the Group for the year ended December 31, 2025 (the “Reporting Period”). The results have been audited by the Auditor in accordance with International Standards on Auditing, and have also been reviewed by the Audit Committee. FINANCIAL PERFORMANCE HIGHLIGHTS For the year ended December 31, 2025 2024 Change RMB’000 RMB’000 % Revenues 5,763,739 5,012,107 15.0 Gross profit 4,254,555 3,478,530 22.3 Profit for the year 1,656,509 890,491 86.0 Profit attributable to equity holders of the Company 1,535,274 811,530 89.2 Adjusted profit for the year* 1,756,925 956,685 83.6 Adjusted profit attributable to equity holders of the Company* 1,628,563 876,846 85.7

.0 Gross profit 4,254,555 3,478,530 22.3 Profit for the year 1,656,509 890,491 86.0 Profit attributable to equity holders of the Company 1,535,274 811,530 89.2 Adjusted profit for the year* 1,756,925 956,685 83.6 Adjusted profit attributable to equity holders of the Company* 1,628,563 876,846 85.7 * To supplement our consolidated financial statements which are presented in accordance with IFRS Accounting Standards, we also use adjusted profit for the year and adjusted profit attributable to equity holders of the Company as an additional financial measure to evaluate our financial performance by eliminating the impact of fair value changes on long-term investments measured at fair value through profit or loss, and share-based compensation expenses. See “Non-IFRS Accounting Standards Measures” for details.

KEY OPERATING INFORMATION For the year ended December 31, 2025 2024 Change (in thousands) (in thousands) % Online Games Average MAUs(1) 11,347 14,247 -20.4 Average MPUs(2) 1,284 1,609 -20.2 TapTap Average App MAUs in TapTap PRC 44,974 44,046 2.1 Average App MAUs in TapTap International 4,325 5,032 -14.1 (1) Our average MAUs for online games are calculated by dividing the aggregate of the total MAUs of each online game for the respective period by the number of months of that period. (2) Our average MPUs for online games are calculated by dividing the aggregate of the total MPUs of each online game for the respective period by the number of months of that period.

MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW AND OUTLOOK In 2025, we achieved continued year-on-year growth in both revenue and profit. Meanwhile, by further integrating AI technology and acquiring the IP rights of Torchlight series games, we have laid a solid foundation for the long-term growth of our business. In our game segment, the strong performance of Ragnarok M: Classic (仙境傳說M:初心服), Heartopia (心動小鎮), and Torchlight: Infinite (火炬之光：無限) drove a 10.5% year-on-year increase in our gaming revenue, both Heartopia (心動小鎮) and Torchlight: Infinite (火炬之光：無限) have the potential to become evergreen games. We plan to continuously invest in R&D and support them to nurture an increasingly broad player base. In our platform segment, improvements to advertising algorithms and enhancements in user engagement led to a 24.7% year-on-year growth in the revenue of TapTap. We launched the PC version of TapTap, creating synergies with the mobile app to provide more convenient services for both players and developers. Furthermore, in early 2026, we initiated the invitation test for TapTap Maker, with the vision of creating a zero-barrier AI game-creation agent for game enthusiasts. Below is an overview of our core products and services: Our Games As of December 31, 2025, our portfolio consisted of 22 online games and 45 premium games. Online Games

the invitation test for TapTap Maker, with the vision of creating a zero-barrier AI game-creation agent for game enthusiasts. Below is an overview of our core products and services: Our Games As of December 31, 2025, our portfolio consisted of 22 online games and 45 premium games. Online Games During 2025, the average MAUs of our online games decreased by 20.4% year-on-year, while the average MPUs decreased by 20.2% year-on-year. This decrease was primarily attributable to the declines in number of users of Heartopia (心動小鎮) and Sausage Man (香腸派對) as compared with 2024. For the year ended December 31, 2025, Heartopia (心動小鎮), GoGo Muffin (出發吧麥芬), Torchlight: Infinite (火炬之光：無限), Ragnarok M (仙境傳說M), and Etheria: Restart (伊瑟) were our top five games in terms of their revenue contribution. An overview of our major games at present is as follows: — Heartopia (心動小鎮): This self-developed life simulation game was launched in July 2024 in Chinese Mainland and was enthusiastically received by players, topping the App Store’s game download rankings multiple times. In 2025, while the number of users for the game experienced a moderation compared to its initial launch period, we strategically expanded the development team, enhanced our production capacity, and

released several well-received content updates, enabling the game to achieve sustained success. In January 2026, we successfully launched the game in multiple countries and regions globally. — GoGo Muffin (出發吧麥芬): This self-developed idle role-playing game was launched in Hong Kong, Macau and Taiwan in January 2024, and subsequently launched in Chinese Mainland and various overseas markets. In 2025, the user base and revenue of this game experienced significant year-on-year declines compared to 2024. — Torchlight: Infinite (火炬之光：無限): This self-developed loot-based ARPG was launched in overseas markets outside China in October 2022 and launched in domestic market in Chinese Mainland in May 2023. Through several successful seasonal updates, the game has gained continuous recognition among players, and expanded the player community. At the end of 2025, we acquired the IP rights of Torchlight series games and related intangible assets. In the future, we hope the game will continue to attract more gamers through more attractive seasonal updates.

Pages: 44
Words: 10,947
Type: Financial

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