Archosaur Games Annual Report 2025

Archosaur Games, a Hong Kong‑listed mobile‑game developer incorporated in the Cayman Islands and majority owned by Tencent and Perfect World, reported a 14.3 % revenue rise to RMB 1,304.4 million in FY 2025, driven by the launches of Dragon Raja: Cassell Gate and Immortal Skywalker in China. Gross profit climbed 11.8 % to RMB 923.7 million, but the margin slipped to 70.8 % because of higher IP‑holder commissions on licensed titles. Operating loss narrowed sharply to RMB 91.1 million from a ¥341.4 million loss in 2024, largely due to a 19 % cut in selling and marketing expenses; R&D spend remained flat. Net loss improved to RMB 36.7 million, an 87.2 % reduction versus the prior year, with an adjusted net loss of RMB 31.9 million after share‑based compensation add‑back.

Cash flow and liquidity strengthened: operating cash usage fell 71.9 %, net current assets rose to RMB 1.48 bn and cash to RMB 1.09 bn, although gearing increased to 24.6 %. The group maintained a robust capital strategy with no external debt, Level‑3 fair‑value investments of RMB 2.24 bn, and a low credit‑risk profile for trade receivables. Governance structures met listing requirements; the board comprised two executives, two non‑executives and three independent directors, with audit, nomination, remuneration and risk committees each staffed by three members. Share‑based incentive plans remained within regulatory caps, granting 4.9 million RSUs and 4.1 million options in 2025.

Geographically, Archosaur operates seven wholly‑owned overseas entities across Singapore, UAE, China, Japan, Korea and the U.S., while its Chinese subsidiaries are controlled through a complex contractual framework that navigates foreign‑investment restrictions. The company’s financial reporting follows IFRS and HKCO, with ongoing transition to IFRS 18 for revenue recognition. Overall, Archosaur Games achieved significant profitability improvement and strengthened liquidity while maintaining compliance with governance and regulatory standards across its global operations.