XD (2400) H1 2026 earnings summary

Executive summary

• Revenue grew 7.5% year-over-year to RMB3,312.2 million for H1 2026, driven by strong performance in self-developed and premium games.

• Profit for the period declined 10.6% year-over-year to RMB724.3 million, mainly due to higher costs and increased tax expenses.

• Adjusted profit, excluding fair value changes and share-based compensation, decreased 8.1% year-over-year to RMB783.5 million.

• Significant investments in AI, including the launch of TapTap Maker and open-sourcing of the Cindy AI agent, aimed at enhancing operational efficiency and product innovation.

Financial highlights

• Gross profit increased 3.4% year-over-year to RMB2,329.3 million; gross margin declined to 70.3% from 73.1% due to higher costs in the game segment.

• EBITDA reached RMB862.7 million; adjusted EBITDA was RMB921.9 million, both slightly down from the prior year.

• Basic EPS was RMB1.49, diluted EPS RMB1.44, both lower than prior year.

• No interim dividend declared for H1 2026.

Outlook and guidance

• Continued focus on AI integration across R&D and operations, with plans to expand AI-native products and cross-device TapTap features.

• Ongoing investment in self-developed and premium games and the TapTap ecosystem to drive future growth.