Zengame reports significant profit decline amidst revenue contraction in H1 2025

Zengame Technology Holding Limited reported a 24.1% decrease in total revenue to RMB709.1 million for the six months ended 30 June 2025, down from RMB934.3 million in the corresponding period of 2024. This reduction was primarily attributed to fewer paying users and a drop in Average Revenue Per Paying User (ARPPU) for board and card games. The company's net profit for the period also fell by 41.0% to RMB182.8 million, from RMB309.8 million in the prior year. Adjusted net profit, excluding share-based compensation, decreased by 36.9% to RMB204.9 million.

Despite the downturn, gross profit margin remained relatively stable at 51.3%. Cost of sales decreased by 21.8% to RMB345.1 million, driven by lower revenue, reduced channel and new media costs, and increased information service costs from promotional efforts. Selling and distribution expenses rose by 76.7% to RMB73.0 million due to higher advertising and promotion expenses, while administrative expenses saw an 8.1% decrease to RMB51.6 million.

The company declared an interim dividend of HK$0.20 per share for the first half of 2025, totaling approximately HK$206.8 million. Strategic efforts in AI integration, core business iteration, and exploring overseas operations are underway to revitalize growth.