Q4 Revenue Acceleration
Total net revenues in Q4 reached RMB 1.74 billion, up 16% year-over-year, the highest in the last 10 quarters, driven by strength in game-related services and advertising.
Strong Game-Related Revenue Growth
Game-related services, advertising and other revenues were RMB 593 million in Q4, up 59% year-over-year; full-year game-related revenues were RMB 1.91 billion versus RMB 1.33 billion the prior year (≈+43.6%), demonstrating the success of the strategic shift into game services.
Successful Game Publishing Debut — Goose Goose Duck Mobile
Goose Goose Duck Mobile launched in January and attracted over 5 million new users within 24 hours and more than 10 million within 6 days; it ranked #1 on the iOS free game chart for most of the time since launch and retained top chart position two months after release, validating the content-driven publishing approach.
Improved Q4 Profitability Metrics
Q4 gross profit was RMB 245 million, up 44% year-over-year; Q4 gross margin improved to 14.1% from 11.4% a year earlier (non-GAAP gross margin 14.3%), and operating loss narrowed to RMB 65 million from RMB 93 million year-over-year.
Rapid Growth in In-Game Item Sales
In-game item sales continued robust expansion, rising over 200% year-over-year in Q4; exclusive presale rights for an Honor of Kings FMVP skin generated close to RMB 10 million in gross billings in the first hour.
AI-Powered Product Momentum
AI-powered live streaming channels now contribute nearly 10% of DAU and on average outperform human channels by ~40% on metrics like viewing time and retention (top AI channels outperform by up to ~80%). AI tools (e.g., Delta Force Map Tool) have strong adoption and plan real-time navigation upgrades.
Shareholder Returns and Balance Sheet Stability
Declared a 2026 special cash dividend of USD 0.135 per ADS (~USD 31 million) and repurchased 22.9 million shares for USD 75.5 million under a USD 100 million program; cash and cash equivalents, short- and long-term deposits were RMB 3.82 billion as of Dec 31, largely flat versus prior quarter.