ARCHOSAUR GAMES (09990) performed well in 2025: revenue increased by 14.3%, and the global matrix continued to expand.

On March 20, ARCHOSAUR GAMES (09990) released its 2025 performance report. During the reporting period, the company achieved operating income of approximately 1.304 billion yuan, a year-on-year increase of 14.3%; gross profit was approximately 924 million yuan, a year-on-year increase of 11.8%. Against the backdrop of the mobile gaming industry entering a phase of stock competition and resource concentration towards top products, ARCHOSAUR GAMES relied on long-term operation of core products, optimization of cost structure, and productivity improvement in research and development to achieve steady growth in revenue scale and maintain stable business operations. Core products support performance, long-term operations provide stable contributions As of December 31, 2025, ARCHOSAUR GAMES had released 24 high-quality mobile games, distributed in over 170 regions in multiple regions supporting 14 languages. The product matrix includes MMORPG, female-oriented, strategy card, idle RPG, and SLG among others. In 2025, ARCHOSAUR GAMES' two high-quality games, "In the Name of Shining" and "Dragon Clan: The Gate of Cassel", became the core engines driving revenue growth for the company. "In the Name of Shining" had a stable operational performance throughout the year, with the average daily active user scale and project earnings in mainland China steadily increasing compared to 2024 and 2023, with the product frequently ranking in the top of the iOS game sales charts. During the reporting period, the game introduced features related to AIGC creation, promoting user-generated content ecology; it also collaborated with the Forbidden City's imperial garden, "Empresses in the Palace", and integrated intangible cultural heritage elements to create a differentiated content label. Overseas, "In the Name of Shining" was launched in South Korea in September 2025, topping the local free charts and receiving official platform recommendations, becoming an important example of the company's overseas expansion in the female market. "Dragon Clan: The Gate of Cassel" maintained user engagement by increasing content updates, introducing seasonal gameplay, and collaborating with other brands, resulting in increased user scale during the summer and anniversary periods compared to the first half of the year. The product has been launched in various markets including Greater China, Southeast Asia, entering the top of the free and bestseller charts in many places. By the end of the reporting period, the game had accumulated over 10 million registered users worldwide, providing a replicable experience for global operations in the strategy card category. In addition, "Fantasy Zhuxian" and "Dragon Clan Fantasy" continued to contribute stable income, with "Fantasy Zhuxian" achieving record revenue and new user scale in 2025, confirming the company's systematic capabilities in operating mature products. Continued optimization of operational efficiency, cost control effects evident In 2025, while steadily growing revenue, ARCHOSAUR GAMES managed to lower its cost rate through adjusted investment strategies and internal management optimization, supporting overall operational quality improvement. In terms of revenue structure, comprehensive game distribution and operation revenue reached 1.176 billion yuan, an increase of 13.7% compared to the previous year, accounting for over 90% of total revenue, further focusing on the main business. Revenue from the Chinese mainland market was 1.051 billion yuan, an 18.8% year-on-year increase, stabilizing the foundation in the local market; overseas market revenue was 0.253 billion yuan, helping the company optimize its revenue structure. The company's gross profit margin remained at 70.8%, a relatively high level in the gaming industry, ensuring stable profitability structure. Significant optimization results were seen on the cost side. In 2025, the company's sales and marketing expenses decreased by 19% to approximately 458 million yuan, with marketing efforts becoming more targeted and improving efficiency; administrative expenses decreased by 7.1% to 93 million yuan, effectively controlling management costs. Research and development expenses remained stable, with an annual investment of approximately 533 million yuan, focusing on Unreal Engine 5, cross-platform adaptation, and AI tools to support long-term research and development capabilities. Benefitting from effective cost control amid revenue growth, ARCHOSAUR GAMES maintained a healthy cash reserve. As of December 31, 2025, the company had cash and cash equivalents and fixed-term deposits of approximately 1.095 billion yuan in current assets, with idle funds mainly allocated to low-risk financial products to enhance fund utilization efficiency while ensuring liquidity and security, providing continuous support for research and business expansion. Deepening research and operation integration, orderly advancement of mid-to-long-term product pipeline During the reporting period, ARCHOSAUR GAMES further improved its integrated research and operation mechanism, optimized organizational structure, strengthened collaborative efficiency between research and development, and distribution, while promoting technology implementation and mid-to-long-term product layout. Financial reports show that VVANNA Studio, which created the phenomenally successful female-oriented hit game "In the Name of Shining" has recently been upgraded to an independent business unit, transitioning to a larger Business Unit (BU) with clearer business responsibilities and more comprehensive resource support system to ensure the game production capacity in the female market. Additionally, the company decided to establish a dedicated Engine Technology Support Department to strengthen technical support for game development, concentrating strategic resources to better support product development. In terms of mid-to-long-term product layout, the company expects to launch six different types of games around the world between 2026 and 2028, covering categories such as strategy card, female-oriented, action-shooter, SLG, idle RPG, utilizing both original IP and licensed IP for development. The product pipeline focuses on the global market, aligning research and development direction with the company's competitive advantages, helping to mitigate risks in a single category and providing momentum for long-term development. The company will continue to optimize distribution efficiency, control cost structure, enhance investment returns in overseas markets, and drive the landing of existing products in more regions. Conclusion The performance of ARCHOSAUR GAMES in 2025 confirms that in the gaming market, efficiency optimization and long-term operation are more supportive of stable business development than short-term expansion. Steady revenue growth, continuous improvement in cost rates, and strong vitality of core products together form the foundation for the company's smooth operation. For shareholders, the core value of this financial report lies in the company transitioning from scale expansion to quality growth, continuously enhancing operational sustainability through product deepening, cost control, and technological accumulation, laying a more solid business foundation for long-term value release. Against the backdrop of the industry trend towards boutique and global focus, ARCHOSAUR GAMES' steady operation and clear pipeline layout maintain a competitive development posture.