On March 20, ARCHOSAUR GAMES (09990) released its 2025 financial results. During the reporting period, the company achieved operating revenue of approximately RMB 13.04 billion, a year-on-year increase of 14.3%. Gross profit reached about RMB 9.24 billion, up 11.8% compared to the previous year. Against the backdrop of the mobile gaming industry transitioning into a competition for existing users and resources concentrating around top-performing titles, ARCHOSAUR GAMES achieved steady revenue growth and maintained stable business operations. This was driven by the long-term operation of its core products, optimization of its expense structure, and improved R&D efficiency.
Core products underpinned the company's performance, with long-term operations generating stable contributions. As of December 31, 2025, ARCHOSAUR GAMES had launched 24 high-quality mobile games, publishing multiple regional versions supporting 14 languages in over 170 markets. Its product portfolio spans various genres, including MMORPGs, female-oriented games, strategy card games, idle RPGs, and SLGs. In 2025, two flagship titles, "Life Makeover" and "Dragon Raja: Cassell's Gate," served as the primary engines for revenue growth.
"Life Makeover" demonstrated stable operational performance throughout the year. In Mainland China, both the average daily active users and project revenue showed steady increases compared to 2024 and 2023, with the product frequently ranking high on the iOS game bestseller chart. During the reporting period, the game introduced AIGC-related creative features to boost user-generated content ecosystems. It also collaborated with entities like the Palace Museum and the series "Empresses in the Palace," while incorporating intangible cultural heritage elements to create differentiated content labels. Overseas, "Life Makeover" launched in South Korea in September 2025, topping the local App Store's free chart and receiving official platform recommendations, establishing itself as a key case study for the company's female-oriented product line expansion abroad.
"Dragon Raja: Cassell's Gate" maintained user engagement by increasing the frequency of content updates, introducing seasonal gameplay, and engaging in cross-over collaborations. User numbers saw an uptick during the summer and anniversary periods compared to the first half of the year. The game has been launched in markets including Hong Kong, Macau, Taiwan, and Southeast Asia, achieving top positions on free and bestseller charts in multiple regions. By the end of the reporting period, its global cumulative registered users had surpassed 10 million, providing replicable experience for the global operation of the strategy card genre.
Furthermore, long-running titles such as "Dream of Jianghu" and "Dragon Raja" continued to contribute stable revenue. Notably, "Dream of Jianghu" reached its highest revenue and new user numbers since 2022 in 2025, demonstrating the company's systematic capability in managing mature products.
Operational efficiency continued to improve, with the effects of expense control becoming evident. In 2025, alongside steady revenue growth, ARCHOSAUR GAMES reduced its expense ratio through adjustments in marketing strategies and internal management optimizations, supporting an overall improvement in operational quality. Regarding revenue structure, comprehensive game publishing and operations generated revenue of RMB 11.76 billion, a 13.7% year-on-year increase, accounting for over 90% of total revenue and indicating a sharper focus on its core business. Revenue from the Mainland China market grew 18.8% to RMB 10.51 billion, underscoring a solid domestic foundation. Overseas market revenue reached RMB 2.53 billion, helping the company diversify its income streams. The company's gross profit margin remained at a high level within the industry at 70.8%, indicating a stable product profitability structure.
Optimization on the expense side was significant. Sales and marketing expenses decreased by 19% year-on-year to approximately RMB 4.58 billion, reflecting more refined marketing efforts and improved efficiency. Administrative expenses fell 7.1% to RMB 0.93 billion, indicating effective control over management costs. R&D expenditure remained stable at roughly RMB 5.33 billion, nearly unchanged from the previous year. R&D investments were focused on Unreal Engine 5, cross-platform adaptation, and the implementation of AI tools, using technological investment to support long-term development capabilities.
Benefiting from revenue growth and effective cost control, ARCHOSAUR GAMES maintained a strong cash position. As of December 31, 2025, cash and cash equivalents and term deposits within current assets amounted to approximately RMB 10.95 billion. Idle funds were primarily allocated to low-risk financial products, enhancing capital utilization efficiency while ensuring liquidity and safety, thereby providing ongoing support for R&D and business expansion.
The research and operation system continued to deepen, with mid-to-long-term product pipelines progressing in an orderly manner. During the reporting period, ARCHOSAUR GAMES further refined its integrated R&D and operation mechanism, optimized its organizational structure, and strengthened collaboration efficiency between development and publishing, while advancing technology implementation and mid-to-long-term product planning. The financial report indicated that VVANNA Studio, the creator of the hit female-oriented game "Life Makeover," was recently upgraded to an independent business unit (BU). This transformation, with clearer responsibilities and a more robust resource support system, is designed to secure production capacity for the female-oriented game segment. Concurrently, the company decided to establish a dedicated engine technology support department to enhance technical backing for game development, pooling superior resources to safeguard product quality.
Regarding mid-to-long-term product strategy, the company expects to launch six different types of games globally between 2026 and 2028. These will cover genres such as strategy card, female-oriented, action shooter, SLG, and idle RPG, utilizing a dual approach of original IP and licensed IP development. The product pipeline is focused on the global market, with R&D directions highly aligned with the company's areas of expertise, helping to mitigate risks associated with reliance on a single genre and providing sustained momentum for long-term growth. The company will continue to optimize publishing efficiency, control cost structures, improve the input-output ratio in overseas markets, and facilitate the launch of existing products in more regions.
In conclusion, ARCHOSAUR GAMES's 2025 performance demonstrates that in a saturated game market, efficiency optimization and long-term operation are more conducive to steady business development than short-term scale expansion. The combination of steady revenue growth, continuous improvement in the expense ratio, and the robust performance of core products forms the foundation for the company's stable operations. For shareholders, the core value of this report lies in the company's transition from a phase of scale expansion to one of quality growth. By deepening its product offerings, controlling expenses, and accumulating technological expertise, the company is continuously enhancing operational sustainability, laying a more solid business foundation for the long-term release of value. As the industry trends towards premium quality and global concentration, ARCHOSAUR GAMES maintains a competitive developmental posture through its stable operations and clear pipeline strategy.