IDREAMSKY (01119) will turn losses into profits in 2025, by self-developing and collaborating on publishing, and deepening IP cultivation to build a strong growth barrier.

On March 30th, IDREAMSKY (01119) officially released its 2025 annual financial report. The report showed that the company achieved a revenue of 1.338 billion yuan for the year, a net profit of 19.92 million yuan, an adjusted net profit of 201 million yuan, achieving a fundamental turnaround and a qualitative improvement in profitability; operating cash flow net inflow of 67.27 million yuan, cash flow operation running steadily. During the reporting period, the company made breakthroughs in its core businesses, deepening the integration and IP layout of AI technology throughout the entire chain, laying a solid foundation for long-term high-quality development. In recent years, IDREAMSKY has steadfastly implemented the "overseas boutique distribution + self-developed" dual-drive strategy, completing the transformation and upgrading from introducing high-quality overseas products and deep localization operations to self-research and building international publishing capabilities. The mid-end service has been standardized, productized, and iterated, and the efficiency and cost advantages continue to be highlighted. In 2025, the core business achieved substantial breakthroughs, coupled with deep application of AI technology to enhance R&D efficiency, stable revenue growth and deep cost optimization formed a synergy, and operational quality achieved a fundamental leap, becoming the core support for the turnaround in this period. The issuing mode iterates and upgrades, consolidating the foundation for long-term growth In terms of issuing business, a sustainable leisure game operation system has been established, through unified platform management layout, achieving customer acquisition, commercialization, content updates, and user service closed-loop, significantly increasing the success rate of new product launches, ensuring the long-term operation of products. Leveraging multiple developers and multiple product collaborative layouts to consolidate the foundation for long-term stable growth. Specifically, the company's issuing advantages are concentrated in three points: first, the advantage of integrating global resources, linking global high-quality developers, accurately selecting and introducing high-quality overseas products, focusing on categories with long-term operating potential to provide stable cash flow support for the company; second, the localization operation and model reuse capabilities, based on the source code distribution model has become a benchmark for overseas content localization operations, the company will further expand the application of this model, copying market-verified operational experiences and data to more casual game products; third, the platform operation barrier, relying on the long-term accumulation of standardized platform capabilities, achieving full-process closed-loop management of user acquisition, commercialization realization, content iteration, and user services to effectively improve the success rate of new product launches and ensure the long-term operation of existing products. With the above core strengths, the company continues to deepen the boutique selection and long-term operation strategy, leveraging IP content empowerment, its flagship products continue to play the "cash cow" effect, effectively driving overall profit margin growth. CFO Le Junwen stated at the performance release conference that the core game revenue in 2025 increased by 13% year-on-year. Among them, the 13-year-old "Subway Surfers" continues to maintain strong business resilience, with the daily average payment rate reaching a historic high in 2025, daily average ARPU remains high, and it further boosts brand influence and user stickiness by launching a special version for the 45th anniversary of the Shenzhen Special Economic Zone in collaboration with "Culture, Tourism & Sports Commission of Shenzhen", incubating the original IP "Shan Shan" with nearly 200 million exposures online. The two core products in the elimination track, "Dream Garden" and "Dream Home", deeply explore user value through the "theme season + precise IP linkage" strategy, using the "Zhen Huan Chuan" theme BP season as a breakthrough, driving the season's revenue to reach nearly a three-year peak, firmly occupying the top three in the mainstream application store elimination category rankings. The layout of segmented tracks continues to improve, "Mech Combat Team" maintains its leading position in the domestic mecha-themed shooting category, and is expected to launch on PC in the summer of 2026, achieving multi-terminal operational breakthroughs; "Legendary Store" continues to enrich content ecology, "Super Joyful Hole" has completed small program payment testing and is planned to be launched on all platforms in the second quarter of 2026; "Charge of the Light Brigade" and other overseas fine reserves are advancing smoothly, further consolidating the foundation for the growth of the issuing business and expanding the revenue growth space. Self-developed business enters a harvest period, IP layout opens up growth space In terms of self-developed business, the company's global first two-dimensional shooter "Kara Mountain" has been launched on multiple platforms for nearly 3 years, uses the innovative "stringification" core mechanism to build differentiation competitive barriers, has a loyal user base in niche categories, the official B station fan number has exceeded 1 million, ranking among the top tier of domestic two-dimensional shooting products. In 2025, "Kara Mountain" PC version entered independent operation and achieved growth against the trend. Core data shows that in early 2026, "Kara Mountain" PC daily active users increased by 40% year-on-year, monthly revenue increased by 90% year-on-year, and monthly active ARPU increased by 73.8%; the mobile game version topped the iOS, TapTap, B station and other platforms upon its release, complementing the user base of the PC game, successfully tapping into new users and revenue increments, the company completed the layout of integrated operation for PC and mobile games, building a closed-loop capability from development to publishing. Chen Xiangyu, Chairman of IDREAMSKY's Board of Directors, stated at the performance release conference that in 2026, the company will continue to advance product gameplay iterations, including developing innovative models such as "Search, Hit, Retreat," improving the ability to create large maps, injecting new impetus into performance growth with a rhythmic content delivery. At the same time, the company's self-developed business will focus on characters as the core, using games as the carrier, continuously exploring and amplifying the value of character IPs. "We attach great importance to the core value of characters in the game ecosystem and continuously explore new interactive scenes combining AI technology and characters. For example, the original IP character "Shan Shan" created based on 'Subway Surfers', as well as the classic images such as Chanei Mei and Bai Moi sculpted from 'Kara Mountain', have accumulated a large number of loyal users. In the future, the company will also build an online equity and offline physical lock-in IP consumption loop, promote multi-terminal coordinated operations and overseas market expansion, and create a long-lasting IP with international competitiveness." AI empowers the entire game scene, creating core barriers in vertical fields In the layout of AI applications, the company focuses on improving product quality and optimizing player experience, focusing on the vertical field of games, deepening scene landing and application innovation. On one hand, it develops unique AI capabilities adapting to the entire gaming scene, and on the other hand, it collaborates deeply with leading AI technology providers to build differentiated competitive barriers in vertical fields. While using AI to improve efficiency, it integrates AI deeply into product experience and IP ecology to build long-term competitive advantages. Currently, AI technology has been fully integrated into the entire industrial chain of product initiation, content planning, R&D testing, publishing operations, and user acquisition investments, significantly improving R&D and operational efficiency, achieving dual breakthroughs in efficiency gains and quality improvement. IDREAMSKY CTO Guan Song introduced that all the company's AI investments are focused on improving product quality, creating a quality player experience, not just pursuing cost optimization, but also emphasizing effective efficiency and experience innovation, enabling AI technology to truly serve products and users. The company's AI layout is clear, advancing systematically around the two core dimensions of "AI for game (R&D and operation empowerment)" and "AI in game (building a new player ecosystem)": on the R&D side, based on reinforcement learning technology, a self-developed AI battle engine has been created to effectively improve the fairness and smoothness of matches; at the same time, it collaborates deeply with leading global AI model manufacturers to systematically integrate cutting-edge large model capabilities into the R&D pipeline, comprehensively accelerating content production and engineering research and development efficiency, laying a solid foundation for the core competitiveness of R&D. On the operational side, driven by AI technology, it achieves precise analysis of player voices, fine management of KOCs, and efficient production of high-quality content, effectively reducing content production costs and significantly improving the precision and efficiency of operational decisions, achieving comprehensive enhancement of operational efficiency. In terms of new player ecosystems, the self-developed and filed "Dream Recall Large Model" has been deployed in the "Kara Mountain" AI lounge, giving game characters emotional memory and real-time interaction capabilities, creating an innovative experience of "emotional symbiosis," successfully upgrading AI from functional applications to emotional interactions, the relevant technical capabilities can be reused across the entire product matrix, opening up a broad space for long-term experience innovation. Chen Xiangyu, Chairman of IDREAMSKY's Board of Directors, stated at the performance release conference: "The company adheres to long-termism, relying on a more stable operating base and more resilient strategic initiative, focusing on the core game business, strengthening product innovation and technological empowerment, taking firm steps towards a new stage of high-quality development. We always believe that time will reward companies that are willing to work hard and do the right things in the long run." (Source: translate.google.com)