ZX INC (09890) announced its interim results for the six months ended June 30, 2025, reporting revenue of 2.025 billion yuan (RMB); gross profit of 1.214 billion yuan; profit attributable to shareholders of 602 million yuan, compared to a loss attributable to shareholders of 383 million yuan in the same period last year, representing a turnaround from loss to profit; and basic earnings per share of 1.14 yuan.

The announcement stated that for the six months ended June 30, 2025, the Group achieved a profit of 650 million yuan, compared to a net loss of 385 million yuan in the same period of 2024. The main reasons for this change include: (i) the fair value of FVTPL financial assets related to shares of other listed companies held by the Group changed from loss to gain; (ii) some game product portfolios launched during the reporting period entered maturity phase, with brand effects reducing new customer acquisition costs; (iii) AI technology implementation in automatic generation of game marketing materials and optimization of advertising model algorithms led to reduced marketing expense ratios; and (iv) increased revenue from overseas game publishing business with higher operating profit margins.

Overseas gaming business generated operating revenue of 313.5 million yuan, representing a 9.2% increase compared to 287 million yuan in the same period of 2024. The proportion of total operating revenue rose by 6.7 percentage points from 8.9% in the same period of 2024 to 15.6%.

During the reporting period, the Group's business entity focused on global publishing and operations of IP products continued to iterate and refresh in the classic gaming IP field, while actively introducing new premium IP game products, driving dual-track business development. Leveraging the strong capabilities brought by AI technology R&D investments in improving game marketing material generation efficiency and optimizing advertising model algorithms, the Group's core advantages in precision marketing and long-cycle operations were further enhanced, leading to improved profit margins.