Giant Network 2025 Annual Report: China

Key insights

6 takeaways

01
Giant Network reported a 72.7% year-over-year revenue increase to ¥5.05 billion and a 23.1% rise in net profit attributable to shareholders to ¥1.76 billion for the 2025 fiscal year.See it on page 71
02
Operating cash flow surged by 188.6%, while operating profit grew 54% to ¥829 million, bolstered by a 93% increase in net profit to ¥947 million due to tax efficiencies and investment income.See it on page 74
03
The company’s growth is anchored by a dual-core strategy focusing on the '征途' MMORPG and '超自然行动组' casual title, supported by a doubling of R&D expenditure.See it on page 16
04
Financial volatility is evident in other comprehensive income, which swung from a positive ¥219 million to a negative ¥220 million due to credit impairment losses and fair-value adjustments.See it on page 151
05
The company maintains a conservative financial position with an asset-liability ratio of 18.67% and retains over 80% voting control through founder-controlled entities.See it on page 56
06
Giant Network is aligning its operations with Chinese regulatory mandates by integrating traditional culture into game design and prioritizing AI and cloud R&D.See it on page 30

Summary

Giant Network’s 2025 annual report demonstrates a robust year-over-year performance, with total revenue escalating 72.7% to ¥5.05 billion and net profit attributable to shareholders rising 23.1% to ¥1.76 billion. Operating cash flow surged by 188.6%, underscoring strong liquidity generation. The company’s dual-core strategy—leveraging the MMORPG IP “征途” and the casual title “超自然行动组”—drives growth, supported by AI-enabled development and cross-platform expansion. Despite these gains, recent non-recurring losses have yet to turn positive, creating some uncertainty about long-term profitability.

Regulatory developments in China have accelerated a focus on original IP and digital-culture products. Government policies encourage embedding traditional culture into game design, boosting AI and cloud R&D, and expanding overseas digital content. Giant Network aligns with these directives through a research-and-operations model, heavy IP investment, and compliance tightening under new child-online-protection rules.

Financially, operating profit rose 54% to ¥829 million, while net profit increased 93% to ¥947 million, largely due to higher investment income and lower tax expense. R&D spending more than doubled, reflecting intensified product development. Other comprehensive income swung from a positive ¥219 million to a negative ¥220 million, driven by fair-value changes and credit impairment losses. The group maintained a conservative asset-liability ratio, rising from 12.76% to 18.67%, and retained over 80% voting control through founder-controlled entities.

Key findings highlight that core gaming revenue remains strong, investment income is mixed, and non-recurring items significantly impact overall profitability. The report covers China exclusively, focusing on the 2025 fiscal year and encompassing gaming operations, IP development, regulatory compliance, and financial risk management.