Zengame Technology Holding Limited (Zengame) released its audited results for the year ended 31 December 2025. Revenue dipped 6.8% year-on-year to RMB1.55 billion, while net profit fell 19.2% to RMB347.79 million. Non-HKFRS adjusted net profit (excluding share-based compensation) was RMB387.03 million, down 15.2%.

Gross profit declined 14.5% to RMB785.50 million and gross margin narrowed to 50.8% from 55.4%, reflecting higher information-service costs and intensified competition. Net margin contracted to 22.5% (2024: 26.0%).

Board and card games remained the main revenue driver at RMB1.30 billion but dropped 15.9% year-on-year. Casual games, led by “Fishing Master”, more than doubled to RMB241.11 million, lifting their share of total revenue to 15.6% (2024: 6.4%).

Key operating indicators softened: monthly active users (MAU) fell to 19.93 million (-15.7%), daily active users (DAU) to 3.70 million (-14.2%) and monthly paying users (MPU) to 460,000 (-8.4%). Average revenue per paying user (ARPPU) rose 6.3% to RMB272, aided by content upgrades and monetisation refinements.

Total operating expenses rose due to a 14.3% jump in selling and distribution spend (RMB169.15 million) linked to promotional campaigns, and a 5.0% increase in R&D outlays (RMB132.93 million) as the group accelerated AI deployment. Administrative costs eased 3.1% to RMB98.79 million.

Cash and cash equivalents plus time deposits (current and non-current) stood at RMB1.74 billion, down from RMB1.79 billion a year earlier, partly reflecting a shift into RMB792.30 million of low-risk wealth-management products. Capital expenditure was RMB11.40 million. The balance sheet remained unlevered with a gearing ratio of 0.01% and a current ratio of 11.9.

The board proposes a final dividend of HK$0.20 per share, 33.3% higher than 2024, implying a payout ratio of roughly 34% of reported earnings.

Looking to 2026, management will prioritise long-term operations of flagship titles, deepen AI integration across R&D and operations, expand the casual-game portfolio and pursue disciplined overseas expansion.