GALA TECH HOLD (02458) has issued a positive profit alert, projecting a significant increase in its financial performance for the six months ending June 30, 2026. The company anticipates recording a profit within the range of RMB 138 million to RMB 147 million, which represents a substantial year-on-year growth of approximately 157% to 174%.
In its official announcement, the group also provided revenue expectations for the period, forecasting figures between RMB 573 million and RMB 608 million. This would mark an increase of about 22% to 29% compared to the corresponding period in 2025.
The notable surge in profitability is primarily driven by two key factors. Firstly, the group's core gaming operations have demonstrated robust growth. The flagship game "Best Football Club" has fully capitalized on the World Cup opportunity, achieving record-breaking operational metrics across all key indicators. The company has successfully expanded its licensing portfolio, advanced core technology iterations, upgraded its brand strategy, and deepened its overseas market presence, collectively elevating both product competitiveness and commercialization performance to new heights. Additionally, the game "NBA Peak Battle" has undergone systematic optimization of its monetization framework and active engagement strategies, which has strengthened product appeal and user retention, leading to significantly enhanced revenue generation.
Secondly, the company has recorded substantial fair value gains from financial assets measured at fair value through profit or loss. During the reporting period, the market value of the group's equity investment portfolio increased notably, generating combined realized and unrealized gains of approximately RMB 74 million to RMB 79 million. This amount accounts for roughly 52% to 55% of the net profit, constituting a major contribution to the period's profitability.
It is important to note that this substantial profit growth includes non-cash unrealized fair value gains arising from the appreciation of financial asset market values. These gains are susceptible to capital market fluctuations and do not represent actual cash inflows from the group's core business operations. Consequently, they should not be used as a basis for forecasting the company's future sustainable profitability.
Furthermore, the business growth of core games during this period has partly benefited from the external catalyst of major sporting events such as the World Cup. In light of the objective volatility inherent in sports event cycles and the uncertainties prevailing in capital markets, the board acknowledges that the market value of the group's equity investment portfolio is influenced by certain non-recurring and market-related factors. The group remains steadfastly focused on the development of its principal business, continuously strengthening capabilities and resource allocation in core areas including sports game research and development, licensing matrix construction, and long-lifecycle product operations, all aimed at driving the company's long-term and sustainable growth.