XD Inc (02400) announces joy in profit, expecting a net profit of not less than 15.8 billion yuan in 2025, an increase of about 77.4% year-on-year.

XD INC (02400) announces that it expects the group's revenue for the year ending December 31, 2025 to be no less than RMB 5.71 billion, an increase of approximately 13.9% compared to the revenue of approximately RMB 5.0121 billion for the year ending December 31, 2024; and the net profit for the year ending December 31, 2025 to be no less than RMB 1.58 billion, an increase of approximately 77.4% compared to the net profit of approximately RMB 890.5 million for the year ending December 31, 2024. Based on the available information, the Board of Directors believes that the expected increase is mainly due to the strong performance of self-developed games "Ragnarok M: Classic," "Heartopia," and "Torchlight: Infinite," as well as the launch of "Etheria: Restart" in June 2025, which collectively drive the group's revenue growth and improve the gross profit margin; although the average monthly active users of the APP remain stable year-on-year, TapTap has achieved significant growth in revenue and profit due to improvements in advertising algorithms and increased user engagement; however, these gains may be offset by a decrease in revenue from certain existing games and an increase in expenses related to performance-linked compensation, AI-related technology services fees, and game production outsourcing.