IDREAMSKY (01119) Mid-year performance in 2026: Dual-driven continuous deepening, self-developed IP and AI agents collaborate to accelerate.

On August 27, IDREAMSKY (01119) officially released its financial report for the first half of 2026. The report shows that the company achieved revenue of 720 million yuan in the first half of the year, with a net profit of 21.2 million yuan and a net operating cash inflow of 36.57 million yuan, representing a quarter-on-quarter growth of 289%. With a continuous focus on the gaming core business, improvements in product operation efficiency, and optimization of expense structure, the company's operational quality continues to improve, laying a foundation for development in the second half of the year. During the reporting period, the company practiced its dual-driven strategy of "overseas premium publishing + self-research," with all core businesses advancing steadily. The foundation of Evergreen Game continues to be solidified, and the self-developed IP "Kara Bichu" has entered the commercialization delivery stage. With the accumulation of long-term operations and self-developed IP assets, the company achieved stable revenue growth and continuous optimization of operational efficiency. At the same time, the company is steadily implementing its AI strategy, focusing on two directions: efficiency intelligent agents and IP character intelligent agents, deeply integrating AI technology into the entire process of game development, operation, and player experience, thereby building a differentiated competitive advantage in the industry. Furthermore, as several new games are set to launch in the second half of the year, the company anticipates a positive outlook. The Evergreen Game matrix is growing steadily, with a rapid release of premium reserves to accelerate growth momentum. Overseas premium game publishing serves as the solid foundation of the company's business, continuing to release growth momentum during the reporting period. Leveraging its deep cooperation advantages in source code, the company promotes steady growth of several Evergreen products through continuous version iterations, partnerships with top IPs, refined user operation, and synchronized cross-platform publishing; at the same time, it accelerates the launch rhythm of new products, continuously enriching its product lineup and opening up new growth spaces. "Subway Surfers" has fully unleashed the potential of its leading product. In the first half of 2026, it completed five major version updates and collaborated with well-known IPs such as "Brawl Stars" and "Boonie Bears." During the collaboration period, "Subway Surfers Shine" had nearly 150 million topic exposures across the internet, with creative submissions for the original IP "Shine" reaching 33,000, achieving a dual enhancement in commercial value and social communication value. During the reporting period, the WeChat Mini Game version was officially launched, accounting for 15% of the total revenue across platforms, becoming an important source of user expansion and revenue growth. "Dream Garden," through IP collaboration and cross-industry partnerships, continued to activate its product vitality, with both average daily ARPU and monthly active user days reaching historic highs in the first half of the year. In August, a collaborative version with "Tang Dynasty Ghost Stories: Chang'an" was launched, becoming another successful collaboration with a national style film and television IP following its partnership with "Empresses in the Palace," significantly boosting DAU; it is worth noting that the mini-game version of "Dream Garden" is about to be launched, injecting new momentum for long-term growth. "Mecha Battle Squad" digs deep into IP value through high-frequency content iterations. In July, it launched the exclusive "Ultimate Mecha Festival" for the domestic server, achieving over 300 million total exposures across all platforms in the first half of the year with refined operations and welfare activities, and a 27% increase in DAU compared to the beginning of the year. The PC version of "Mecha Battle Squad" officially launched on August 13, which will further broaden the user base and extend the product lifecycle. Meanwhile, the company actively expands the ecological boundaries of content, innovatively using AI comic dramas to create derivative content related to mecha themes, which went live in August to promote the extension of IP value into the pan-entertainment field. In terms of new product reserves, the company is accelerating the pace of releases, with multiple premium games set to launch in the second half of the year, continually enhancing its product matrix and widening the boundaries of revenue growth. "Noisy Castle" is expected to go live on both platforms in the third quarter of 2026; new games such as "Weapon Toss" and "Furry Balls" are ready to launch, covering genres like management strategy, action shooting, and arcade, which will be presented to players in formats like apps and mini-games. Self-research business commercialization is steadily accelerating, with "Kara Bichu" establishing a differentiated barrier. In the first half of this year, IDREAMSKY's core self-developed product "Kara Bichu" continued to demonstrate upward market performance, with commercialization entering a harvest phase. As the world's first anime-style shooting game, "Kara Bichu" has established a significant differentiated barrier in the anime shooting genre. In the first half of the year, the average monthly ARPU on PC increased by 41% year-on-year, and DAU increased by approximately 30% year-on-year, with improvements in the retention rates of new and active users; the mobile game has maintained healthy natural growth since its launch in October 2025, and the integrated operation system for mobile games continues to improve. At the same time, the product character system and player community ecosystem are being built simultaneously. Newly popular characters "Xi" and "Nono" have been launched, effectively driving user return. The company continues to support user-generated content, with the number of creators on the platform increasing nearly eightfold year-on-year in the first half of the year. In August, the second "Kara Bichu" Carnival and National University Competition was successfully held, and a new offline alpha test for the games Search, Attack, Withdraw gameplay was opened to thousands of players, with online live stream exposure exceeding 1.8 million, fully confirming the product's market appeal and community stickiness. It is reported that in the second half of the year, "Kara Bichu" will continue to refine its core gameplay, planning to launch the new "Search, Attack, Withdraw" gameplay in the fourth quarter to meet diverse player needs. On the global front, based on the comprehensive operation of both the PC and mobile versions, the company will accelerate the global expansion of the "Kara Bichu" IP, advancing localized operations and commercial verification in key regions. At the same time, it will leverage AI technology to enhance production efficiency, explore innovative forms of IP character intelligent agents, and continuously optimize the player experience. The AI intelligent agent business is being systematically implemented, forming a differentiated competitive barrier in the gaming industry. IDREAMSKY's AI has essential differences from other generic AIs. IDREAMSKY's AI is based on its unique player data, gaming scenarios, and IP assets, grounded in its unique gaming environments and a large accumulation of user behavior data, deeply integrated with cutting-edge large model technology to build a differentiated core competitive advantage. The company's AI strategy systematically focuses on two directions: AI for Game (empowering game production) and AI in Game (integrating into game experience): In terms of AI for Game, the company is developing three core efficiency intelligent agent products covering the entire chain from operational decision-making, content production, to customer service, empowering game teams to reduce costs and increase efficiency for scientific operations. The intelligent customer service agent's problem-solving rate exceeds 85%, evolving from passive response to proactive upgrades; in terms of content production, Camena, as an AI content production platform designed for the gaming industry, integrates creative planning, material management, storyboard creation, image generation, video generation, and result accumulation into a reusable and iterative intelligent production process, producing over ten thousand pieces of game content including images and videos. In operational decision-making, Metis serves as a data intelligent agent and Game Ops platform for the gaming industry, helping teams quickly identify problems and explain causes from data, generating executable operational strategy suggestions, aiding in long-term game growth. In the aspect of AI in Game, IP character intelligent agents are the company's most distinctive exploration direction. Relying on Shine and self-owned IP Kara Bichu, the company allows the connection methods between AI and characters, as well as between AI and users, to continuously evolve. The AI desktop pet assistant for "Kara Bichu" has completed its first version of development, building a "two-way interaction" multicharacter virtual companionship ecosystem, with the first round of trials opened during the August carnival, and will accelerate rollout to all users; simultaneously, the "Kara Bichu" lounge continues to iterate to provide players with a new interactive experience. In August 2026, "Shine Intelligent Agent" was officially launched in "Subway Surfers," allowing players to interact in real time with the IP character, enabling the IP character assets to reach users in a new way. IDREAMSKY's CTO, Guan Song, stated that the company's AI investment always focuses on enhancing product quality and creating a high-quality player experience, rather than simply pursuing cost reductions, with more emphasis on actual efficiency improvements and innovative gameplay experiences. In the second half of the year, the company will continue to deepen the application of efficiency intelligent agents in development, content production, customer service, and advertising, driving the IP character intelligent agents from testing phases gradually to all users; at the same time, relying on the Fanbook community to continuously enrich interactive scenarios, converting AI capabilities into core momentum for IP value growth and business operational efficiency improvement. IDREAMSKY CEO Chen Xiangyu stated in the chairman's report that traversing cycles relies not on single breakthroughs but on the compounded growth of capabilities. Long-term operational capabilities form our fundamental base, self-developed IP is a core asset that continues to appreciate, and AI acts as an amplifier of the value of both. In the future, the company will continue to deepen its gaming core business, accelerate the release pace of new games, continuously explore the value of character IP, transform AI capabilities into momentum for IP appreciation and efficiency enhancement, and seize industry opportunities to broaden growth boundaries. The company will remain pragmatic and resolute, entering a new stage of high-quality development.