On September 12, 2025, FEIYU announced that its wholly-owned subsidiary Xiamen Feiyu has entered into a game development agreement with Tencent Computer, whereby it will develop a new mini-game based on Tencent's intellectual property, with development costs reaching 12.5 million yuan. This agreement not only brings substantial revenue to FEIYU but also marks a new phase in the collaboration between this veteran game developer and mini-game ecosystem leader TENCENT.
According to the agreement, FEIYU must complete several key milestones within tight timelines: deliver the game development plan within one month, deliver the test version within three months, and deliver the commercial launch version within seven months.
The 12.5 million yuan development fee will be paid in three installments: 30% upon agreement signing, 40% upon delivery of the development plan, and the final 30% upon delivery of the commercial launch version. This payment structure is closely tied to project milestones, reducing TENCENT's investment risk.
For FEIYU, this means the team needs to operate efficiently to complete the game's launch preparations by the first half of 2026.
FEIYU's success in securing this TENCENT commission was not coincidental. In 2024, the company made a strategic decision to invest in the mini-game sector, launching the mini-game "One Step Two Steps" in August of that year.
This game achieved significant success, reaching 8th place on WeChat's mini-game bestseller list in January this year. Although its recent ranking has dropped to the 70s, FEIYU recorded revenue of 451 million yuan in the first half of this year, up 343.6% year-over-year, and achieved a turnaround from losses to profitability.
The company subsequently launched mini-games including "Caveman Run," "Beast Transformation Three Kingdoms," and "Reverse Turn," experimenting with different gameplay styles and accumulating valuable mini-game development experience.
This collaboration has a solid capital foundation. As of the last practicable date, TENCENT indirectly holds approximately 14.97% of FEIYU's total issued share capital, making it an important shareholder of the company.
The two parties have prior collaboration history. In September 2024, FEIYU signed a supplemental agreement with Tencent Computer to renew the mobile game cooperation agreement for "Blade of the Three Kingdoms" for a one-year term.
This dual connection of capital and business has laid a solid foundation for the current cooperation. TENCENT serves as both a shareholder and an important client and partner of FEIYU, with this multiple relationship enhancing the stability and long-term nature of their collaboration.
For FEIYU, the value of this cooperation far exceeds the 12.5 million yuan development fee. The company explicitly stated that being commissioned by TENCENT for development allows the company to "understand the standard development processes of tech giants, thereby enhancing the team's technical capabilities and proficiency, and accumulating and strengthening mini-game development experience."
TENCENT holds a dominant position in China's mini-game market, and collaborating with it helps FEIYU establish industry reputation and promote the formation of long-term cooperative relationships. This learning opportunity may be more valuable than direct economic benefits for FEIYU, which is undergoing transformation.
Meanwhile, FEIYU's investment in HTML5 game development and its strategy to launch 8 HTML5 games in the second half of the year also creates good synergy with this cooperation.
The capital market has responded positively to this collaboration. After the announcement, FEIYU's stock price surged over 10% in early trading on September 15, even reaching an 18.18% gain at one point, with the stock price hitting HK$0.91.
This strong market reaction indicates that investors are optimistic about the long-term value this cooperation brings to FEIYU. This is not only due to the 12.5 million yuan contract amount, but also because the deep cooperation with TENCENT may bring strategic opportunities and development space to the company.
The stock surge also reflects market recognition of FEIYU's mini-game strategy and optimistic expectations for the company's future performance.
FEIYU revealed in its financial report that the company plans to continue extending product lifecycles and launch overseas expansion starting with Southeast Asia. The cooperation experience with TENCENT may provide valuable experience for the company's overseas expansion.
The cooperation between the company and TENCENT may not be limited to a single project. The announcement mentioned that developing this mini-game will "promote long-term cooperation with TENCENT," suggesting that both parties may have more cooperation opportunities in the future.
For FEIYU, this cooperation may be just the beginning. If the project executes smoothly, the company is expected to become a more stable partner of TENCENT and secure more similar commission opportunities.
The 12.5 million yuan cooperation between FEIYU and TENCENT far exceeds the significance of an ordinary game development contract. For FEIYU, this represents recognition of its mini-game development capabilities and is a valuable opportunity to learn top-tier development processes and enhance team technical capabilities.
For TENCENT, commissioning FEIYU, with which it already has a shareholder relationship, to develop mini-games based on its own IP represents optimal resource allocation that ensures development quality while strengthening cooperative relationships with mini-game developers.
This transaction reflects profound changes occurring in the gaming industry: mini-games are becoming an important track, the relationship between platforms and developers is being restructured, and manufacturers like FEIYU that can quickly transform may gain new development opportunities in this wave of industry transformation.