TIANGE swings to RMB122.79 million H1 profit as overseas interactive growth and investment gains drive turnaround

Bulletin Express
Sep 29

TIANGE Interactive Holdings reported a sharp recovery for the six months ended 30 June 2026, reversing last year’s interim loss with net profit of RMB122.79 million versus a RMB24.65 million loss in H1 2025.

Revenue rose 93.30 % year on year to RMB31.25 million. Online interactive entertainment services, buoyed by a shift to gross‐basis revenue recognition following full host-management control of “Sila Chat”, surged 121.10 % to RMB27.68 million and accounted for 88.57 % of group turnover. The “Others” segment — covering software R&D, cross-border e-commerce, online ride-hailing and related services — was stable at RMB3.57 million.

Gross profit slipped to RMB13.46 million from RMB10.94 million, as margin narrowed to 43.10 % (H1 2025: 67.60 %) due to higher host costs. Selling and marketing expenses climbed 35.90 % to RMB15.13 million, while administrative expenses were broadly steady at RMB30.24 million. Research and development spending fell 16.50 % to RMB8.79 million following the shutdown of underperforming platforms.

Earnings were bolstered by a RMB165.06 million net gain in “Other gains”, driven mainly by RMB136.70 million of net fair-value gains on financial assets at fair value through profit or loss and a RMB20.62 million gain on derivatives held for trading. Adjusted net profit — excluding non-cash share-based compensation and acquisition-related depreciation and amortisation — reached RMB123.04 million, compared with a RMB24.33 million adjusted loss a year earlier.

Cash and cash equivalents totalled RMB341.73 million at period-end (31 December 2025: RMB427.94 million). Financial assets at fair value through profit or loss expanded 6.49 % to RMB1.92 billion, led by higher valuations of venture capital, private equity funds and listed equities. Total borrowings declined to RMB179.61 million (31 December 2025: RMB206.86 million), reducing the group’s gearing ratio to 8.20 % from 9.60 %.

The board declared an interim dividend of HK$0.06 per share, payable on or around 30 September 2026 to shareholders on record as of 17 September 2026.

Management highlighted continued focus on core interactive entertainment, AI-driven efficiency initiatives, and prudent financial investments, with overseas platforms positioned as key growth drivers.

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