Zengame Technology Holding Limited (Zengame) released its unaudited interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue rose 13.4% year on year to RMB 804.47 million, driven mainly by a larger paying-user base and higher ARPPU in card and board games. • Gross profit increased 16.9% to RMB 425.74 million, lifting gross margin to 52.9% (1H25: 51.3%). • Net profit declined 7.8% to RMB 168.60 million as a 64.9% surge in selling and distribution expenses (RMB 120.38 million) and impairment charges (RMB 29.01 million vs. RMB 2.62 million in 1H25) offset revenue gains. Net margin fell to 21.0% (1H25: 25.8%). • Non-HKFRS adjusted net profit (excluding share-based compensation) slid 14.5% to RMB 175.22 million. Basic EPS was RMB 0.17, down 5.6%.

Revenue Mix • Virtual items remained the core driver, contributing RMB 769.70 million (95.7% of total, +13.9%). Of this, self-developed games generated RMB 769.22 million (+14.2%), while third-party titles fell 82.9% to RMB 0.47 million. • In-game information services delivered RMB 34.77 million (+5.1%). • By genre, board & card games accounted for 84.8% of revenue at RMB 681.95 million (+12.5%), while casual & other games rose 19.2% to RMB 122.52 million.

Operating Metrics • Monthly active users declined 11.7% to 18.33 million and daily active users fell 10.9% to 3.40 million. • Monthly paying users (virtual items) edged up to 0.46 million (1H25: 0.45 million). • ARPPU improved 9.1% to RMB 276.

Cost Structure • Cost of sales rose 9.8% to RMB 378.73 million, with channel costs up 11.4% and information-service costs up 18.6%. • Selling & distribution expenses jumped to RMB 120.38 million (+64.9%) on heightened advertising and promotion. • R&D outlays trimmed 14.4% to RMB 56.77 million; administrative expenses fell 5.4% to RMB 48.79 million. • Impairment losses and other expenses climbed to RMB 29.05 million, reflecting full write-downs on two associate investments and expected credit losses.

Balance Sheet and Cash Flow • Total cash, bank balances and time deposits (original maturity > 3 months) stood at RMB 1.54 billion, broadly stable versus end-2025. • Current ratio improved to 15.8 (FY25: 11.9) on current assets of RMB 2.65 billion against current liabilities of RMB 168.01 million. • The company had no interest-bearing debt; gearing ratio was nil (FY25: 0.01%). • Capital expenditure for the period was modest at RMB 1.00 million.

Dividend and Policy No interim dividend was declared. Zengame reiterated its policy of distributing at least 30% of annual profit, subject to business conditions and board discretion. A final dividend of HK$0.20 per share for FY25 was paid on 25 June 2026.

Operational Highlights • Flagship title “Fingertip Sichuan Mahjong” maintained a top-grossing iOS position following two major content updates and themed events. • “Fishing Master” received performance upgrades, while overseas titles “Jackpot Dreams” and “Jackpot Crazy” posted revenue growth, aided by festival campaigns and faster content iterations. • AI integration advanced across R&D and operations, with a tenfold improvement in inference efficiency and a threefold rise in training efficiency from the self-developed reinforcement learning framework.

Outlook Management will emphasize continuous game iteration, deeper penetration in China’s card-and-board segment, accelerated overseas expansion, and increased investment in AI capabilities during 2H26.