ZX INC (09890) announces its interim performance. Shareholders' net profit reached 602 million yuan, turning from a loss to a profit year-on-year.

ZX INC (09890) announced its interim performance for the six months ending on June 30, 2025, with revenue of 2.025 billion RMB; gross profit of 1.214 billion RMB; attributable net profit to shareholders of 602 million RMB. In the same period last year, shareholders' attributable losses were 383 million RMB, turning from loss to profit on a year-on-year basis; basic earnings per share were 1.14 RMB. According to the announcement, the Group achieved a profit of 650 million RMB in the six months ending on June 30, 2025, compared to a net loss of 385 million RMB in the same period in 2024. The main reasons for this change are: (i) the fair value of FVTPL financial assets related to other listed companies held by the Group turned from loss to profit; (ii) some game product portfolios launched during this reporting period entered a mature stage, reducing the cost of acquiring new customers due to brand effect; (iii) the decrease in marketing expense ratio brought by the AI technology in generating and optimizing promotional materials for game release; and (iv) the increase in revenue generated by overseas game publishing business with higher operating profit margin. The operating revenue of overseas game business was 313.5 million RMB, a year-on-year increase of 9.2% compared to 287 million RMB in the same period in 2024, accounting for 15.6% of the total operating revenue in the reporting period, an increase of 6.7 percentage points from the same period in 2024. During the reporting period, the Group focused on the global distribution and operation of IP products, continuously iterating and rejuvenating in the field of classic game IP, and actively introducing new high-quality IP game products, resulting in the dual advancement of the business. Leveraging the strong empowerment of game material generation efficiency and optimization of distribution model algorithms brought by AI technology research and development input, the Group's core advantages in precise marketing and long-term operation were further deepened, leading to an improvement in the Group's profit margin.