2025 marks a milestone year for ZX INC (09890). At the crucial juncture of its tenth anniversary, the company delivered an impressive interim performance report that captured market attention. According to company announcements, ZX INC achieved a turnaround to profitability in the first half of 2025, with net profit reaching RMB 650 million. This transformation not only reflects the company's solid business fundamentals and improvement, but also indicates that its strategic layout is entering a comprehensive harvest period.

In the first half of 2025, ZX INC generated operating revenue of RMB 2.005 billion and achieved net profit of RMB 650 million, a significant improvement from the net loss of RMB 385 million in the same period last year. ZX INC's strong performance growth is closely tied to the company's deep cultivation in "AI+Gaming" strategy, overseas expansion, strategic investments, and brand strategy.

**I. Comprehensive Implementation of AI+Gaming Strategy Drives Marketing and Operational Cost Reduction and Efficiency Enhancement**

ZX INC has deeply integrated AI technology into the entire chain of game publishing and operations, achieving systematic efficiency improvements from marketing promotion to content production. Through its self-developed intelligent advertising system "Luoshu" and intelligent analysis system "Hetu," the company has realized multi-channel unified advertising placement and real-time traffic control, significantly improving placement accuracy and resource utilization rates.

Meanwhile, AIGC technology is widely applied in automatic material generation, copywriting optimization, and creative testing, rapidly producing high-quality promotional content and significantly reducing manual and time costs. AI applications also extend to user operations and customer service, improving user retention and payment conversion through behavioral prediction and personalized recommendations, further optimizing lifetime value (LTV).

AI technology is penetrating from the marketing end to the development end, supporting art material generation, gameplay testing, and balance adjustments, gradually achieving intelligent transformation of the development process. This series of "AI+Gaming" practices has enabled ZX INC to continuously improve operational efficiency and profitability while controlling marketing costs.

Through comprehensive application of AI technology in core areas such as promotion strategy optimization, creative material generation, and precise placement control, ZX INC has not only maintained market competitiveness but also significantly controlled marketing expense investment scale. The changes in marketing revenue in the first half actually reflect the success of the company's strategic transformation, with ZX INC replacing resource accumulation with technology-driven approaches and achieving lean operations through intelligent empowerment, ultimately achieving cost reduction and efficiency enhancement while ensuring effectiveness, laying a solid foundation for the company's healthy and sustainable growth.

**II. Overseas Markets Become High-Profit Growth Engine with Significant Localized Publishing Results**

Notably, the rapid growth of high-profit overseas business has become a new highlight of the company's performance growth. As the domestic market gradually saturates, gaming overseas expansion has become an industry trend, with ZX INC performing particularly well in overseas publishing.

Compared to the domestic market, users in some overseas markets have stronger payment willingness and more diversified competitive landscapes, thus overseas business generally has higher operating profit margins. During the period, multiple games published overseas by the company performed brilliantly, not only bringing revenue growth but also contributing high-quality profits to overall performance.

Recently, "Legend of Blood: Return" topped the iOS free chart on its first day of launch in South Korea, won the top position on both platform bestseller charts in Thailand, and secured first place on the Vietnam iOS free chart. These achievements not only demonstrate ZX INC's high adaptability to overseas markets but also highlight its enhanced global influence.

As of the first half of 2025, ZX INC has successfully published and operated over 30 multi-language products in Southeast Asia, Hong Kong, Macao, Taiwan, Japan, South Korea, Europe, America, Middle East and other markets, establishing deep market foundations. As ZX INC continues to increase investment in overseas business layout, related revenues are gradually increasing, driving further improvement in overall profitability. In the long term, overseas markets will become a key support point for ZX INC's sustainable growth, opening broader strategic growth space.

**III. Core Gaming Products Enter Maturity Phase, Main Business Optimization Drives Profit Margin Improvement**

Through accumulation and development, ZX INC has formed a portfolio of products entering maturity phase. These products now not only have stable revenue streams and user bases but also demonstrate higher efficiency in user expansion through long-term accumulated brand effects, reducing new user acquisition costs and becoming key sources of the company's profit margin improvement.

Multiple classic gaming products under ZX INC have entered mature operational stages, such as IP-adapted works like "Legend," "Miracle MU," and "Legend of Blood," continuously contributing stable revenue streams and user bases. These products have significantly reduced new user acquisition costs through long-term accumulated brand effects and user recognition, further releasing profit space.

The rapid development of mini-program games is opening a completely new growth curve for the company. In recent years, with changes in user entertainment habits and the maturation of social platform ecosystems, mini-program games have become an important incremental market in the industry due to their characteristics of being "lightweight," "easily accessible," and enabling "social viral spread."

ZX INC actively promotes IP lightweight adaptation and multi-platform distribution, launching mini-program versions such as "Primitive Legend," "Dragon Trace City," and "National Jianghu," achieving low-cost reach and social viral spread through WeChat, TikTok, Alipay and other channels, covering broader user groups. The company also actively layouts in emerging categories such as casual, martial arts RPG, and tower defense games, with representative work "Little Soldiers Big Battle," further enriching the product matrix, extending the lifecycle of classic IPs while covering broader user needs.

The continuous optimization of gaming structure has made the company more resilient in product lifecycle management and user value mining.

**IV. Strategic Investment and Cooperation Deepening, Building Ecosystem Synergy Foundation**

Beyond its main business, ZX INC also enhances ecosystem synergy and resource integration through financial asset investment and strategic cooperation. In the first half, the fair value recovery of some listed company equity held by the company contributed positively to profits.

ZX INC emphasizes that investment layout remains strategically cooperation-oriented, focusing on deep synergy with enterprises in gaming industry chains, IP development, AI technology and other fields, aimed at strengthening its own R&D, publishing and operational capabilities.

IP is the core asset of gaming companies. ZX INC not only develops independently but also continuously expands IP reserves through various methods including investment and licensing cooperation. The company currently controls over ten heavyweight IPs including "Demi-Gods and Semi-Devils," "The Smiling, Proud Wanderer," and "The Legend of the Condor Heroes Trilogy," with over 20 games in reserve, and continuously expands IP ecosystem and technical boundaries through investment and cooperation.

This not only ensures the company's ability to continuously launch new works in the coming years but also ensures the continuation of brand popularity and player attention, providing a natural foundation for the company to expand cross-border business.

Overall, ZX INC's significant performance turnaround in the first half of 2025 can be attributed to the synergistic effect of four major pillars: AI cost reduction and efficiency enhancement at the technical level, high-profit overseas business growth at the market level, steady contribution from mature products at the product and operational level, and financial asset value recovery at the capital level. These four different dimensions jointly drove the company to achieve a turnaround to profitability, also laying the foundation for future long-term sustainable development.

**Multi-dimensional Strategic Synergy: ZX INC Enters New Stage of High-Quality Growth**

Finally, while performance and business continue to trend upward, the company officially announced changing its name from "ZX INC" to match the brand already familiar to the market. The board believes this adjustment will help enhance the company's brand value and further amplify market influence.

For ZX INC at its tenth anniversary, this is not only a visual unification but also a strategic reshaping. By strengthening brand recognition, the company's competitiveness in domestic and international markets will be further enhanced.

Standing at the new starting point of its tenth anniversary, ZX INC has constructed a clear and sustainable growth model through four dimensions: AI empowerment, overseas expansion, main business optimization, and strategic investment. The company has not only successfully achieved a turnaround to profitability but also demonstrated foresight in brand renewal, technology integration, and ecosystem layout. In the future, with the deepening of "AI+Gaming" applications, continued expansion of overseas markets, and ongoing maturation of the IP matrix, ZX INC is expected to gain greater growth space in global competition.