Chuangmeng Tiandi 2025 Financial Report: Turning Losses into Profits Demonstrates Development Resilience Dual-Drive + AI Empowerment Activates Long-Term Growth

On March 30, 2026, Dream Games (Stock code: 01119.HK) officially released its 2025 annual financial report. The report shows that the company achieved full-year revenue of RMB 1.338 billion and net profit of RMB 19.92 million, and, after adjustment, net profit of RMB 201 million, achieving a fundamental turnaround from loss to profit, with a qualitative improvement in profitability; operating net cash inflow was RMB 67.27 million, and cash flow remained steady. During the reporting period, the company’s core business saw multiple breakthroughs. AI technology’s end-to-end empowerment and the ongoing deepening of its IP-based strategy laid a solid foundation for long-term, high-quality development.

In recent years, Dream Games has firmly implemented the “overseas premium publishing + in-house development” dual-engine strategy. It completed a transformation and upgrade from importing high-quality overseas products, to running deeply localized operations, to building internationalization capabilities in in-house development and publishing. Its back-office services achieved standardization and product-based iteration, and its efficiency and cost advantages continued to stand out. In 2025, the company’s core business achieved substantive breakthroughs. Coupled with the deep application of AI technology to improve R&D and production efficiency, the combined effect of steady revenue growth and deep cost optimization drove a fundamental leap in operating quality, becoming a core support for this turnaround to profitability.

Publishing model iteration and upgrade to lay a solid foundation for long-term growth

In terms of publishing business, it built a sustainable leisure game operating system. Through a unified platform-based management and layout, it achieved a closed loop covering user acquisition, monetization, content updates, and user service, significantly improving the success rate of new titles launching and ensuring long-term operation for products. With the help of a multi-publisher and multi-product coordinated layout, it further strengthened the foundation for long-term, stable growth.

Specifically, the company’s publishing advantages are concentrated in three areas: first, global resource integration advantage—connecting with high-quality developers worldwide, precisely screening and introducing high-quality overseas products, and focusing on categories with long-term operational potential, providing stable cash flow support for the company; second, localization operations and mode-reuse capability—its source-code-based publishing model has become a benchmark for localized operations of overseas content. The company will further expand the application of this model, and replicate market-validated operational experience and data to more leisure game products; third, platform-based operational moat—relying on long-term accumulated standardized platform capabilities to implement end-to-end closed-loop management for user acquisition, monetization, content iteration, and user service, effectively improving the success rate of new title launches and ensuring long-term operation of existing products.

Based on the above core advantages, the company continues to deepen its premium title selection and long-term operation strategy. With IP content empowerment, its long-standing products continue to play the “cash cow” effect, effectively driving a year-over-year increase in overall profit margin. At the performance briefing, the company’s CFO, Lei Junwen, said that in 2025, core game revenue increased by 13% year over year. Among them, “Subway Surfers,” which has been live for 13 years, still maintained strong operational resilience. In 2025, average daily paying rate reached a historical high, and daily ARPU remained at a high level. Meanwhile, by launching a Shenzhen Special Administrative Region 45th Anniversary special edition in collaboration with “Culture and Tourism Shenzhen,” it incubated an original IP “Shan Shan,” with nearly 200 million total exposures across the web, further enhancing brand influence and user stickiness. Two core products in the match-3 track, “Dream Garden” and “Dream Home,” deepened user value through a “themed seasons + precise IP collaboration” strategy. Taking the “Empresses in the Palace” themed BP season as a breakthrough, it drove season revenue to nearly a three-year peak and maintained a top-three position on mainstream app store match-3 category rankings. The continued refinement of its sub-sector layout is ongoing: “Mecha Team” maintains a leading position domestically in the mech-themed shooting category. Its PC version is expected to launch in the summer of 2026, enabling breakthroughs in multi-platform operations. “Legendary Store” continues to enrich its content ecosystem. “Super Hole Hole Fun” has completed paid trial testing on mini programs, and plans to launch across all platforms in Q2 2026. Overseas reserve premium titles such as “Clash Clash Pikeman” and “Phantom Fantasy: War” are progressing smoothly, further strengthening the growth foundation of the publishing business and expanding space for revenue growth.

In-house development enters the harvest period, and the IP-based layout opens up growth space

In terms of in-house development, the company’s first globally launched anime-style shooting title “Kartrider: Drifting” achieved multi-platform rollout, officially moving from the development investment phase into the commercial harvest phase, becoming a new engine for performance growth. As product maturity continues to improve, together with the full-process deep application of AI technology, the company’s R&D expense structure has been continuously optimized, further thickening its profit level.

The PC version of “Kartrider: Drifting” has been operating online for nearly 3 years. By leveraging its original “stringification” core mechanism to build a differentiated competitive moat, it has cultivated a group of loyal users within its subcategory. Bilibili’s official follower count surpassed 1 million, placing it among the first tier of domestic anime-style shooting products. In 2025, the PC end of “Kartrider: Drifting” moved into self-operated operations and achieved growth against the trend. Key data shows that at the beginning of 2026, “Kartrider: Drifting” PC’s average daily active users grew 40% year over year, monthly revenue grew 90% year over year, and monthly active ARPU increased by 73.8%. On mobile, the game ranked at the top immediately upon release on multiple platforms including iOS, TapTap, and Bilibili, and it is highly complementary to the PC user base. This successfully opened up incremental user growth and revenue upside. With this, the company completed a unified multi-platform (PC and mobile) operations layout and built end-to-end closed-loop capabilities from R&D to publishing.

At the performance briefing, Chen Xiangyu, Chairman of Dream Games’ board of directors, said that in 2026 the company will continue to advance iteration of product gameplay, including developing innovative modes such as “search-shoot-retry,” and improving large-map production capabilities. Through content delivery with a rhythm, it will inject new momentum into performance growth. At the same time, the company’s in-house development business will focus on characters as the core and games as the carrier, continuously exploring and amplifying the value of character IP.

“We attach great importance to the core value of characters in the game ecosystem and are continuously exploring new interaction scenarios that combine AI technology and characters. For example, the original IP character Shan Shan developed based on ‘Subway Surfers,’ and classic character depictions such as Chanel Mei and Bai Mo shaped in ‘Kartrider: Drifting,’ have already accumulated a large number of loyal users. In the future, the company will also build an IP consumption closed loop in which online benefits and offline physical items lock together, advance multi-platform coordinated operations and expand into overseas markets, and create long-lasting IP with international competitiveness.”

AI empowers every game scenario to build a core moat in vertical fields

In its AI application deployment, the company takes improving product quality and optimizing the player experience as its core focus, concentrates on vertical game domains, and deepens scenario implementation and application innovation. On one hand, it develops specialized AI capabilities adapted to all game scenarios through in-house development; on the other hand, it deeply collaborates with leading AI technology providers to build differentiated competitive moats in vertical scenarios. While leveraging AI to improve efficiency, it also deeply integrates AI into product experience and the IP ecosystem, building continuous momentum for long-term competitive advantage.

Currently, AI technology has been fully embedded across the entire industrial chain of product planning, content planning, R&D testing, publishing operations, and user-acquisition spending placement, significantly improving R&D and operational efficiency. It achieves dual breakthroughs of efficiency and cost reduction, as well as quality improvement. Dream Games’ CTO, Guan Song, introduced that all of the company’s AI investments are carried out around improving product quality and creating a premium player experience. The company does not pursue cost optimization for its own sake; it focuses on real-world efficiency gains and experience innovation, so that AI technology truly serves products and users.

The company’s AI layout is clear and advances systematically around two core dimensions: “AI for game (R&D and operations empowerment)” and “AI in game (building a new player ecosystem).” On the R&D side, it builds a proprietary AI combat engine based on reinforcement learning to effectively enhance fairness across matchings at all skill tiers and improve match smoothness. At the same time, it co-creates with globally leading AI model vendors, systematically integrating cutting-edge large-model capabilities into the full R&D pipeline to comprehensively speed up content production and engineering R&D efficiency, strengthening its core R&D competitiveness. On the operations side, driven by AI technology, it enables precise analysis of player voices, fine-grained KOC management, and efficient production of high-quality content. This not only effectively reduces content production costs, but also significantly improves the precision and efficiency of operational decision-making, achieving a comprehensive upgrade in operational effectiveness. In terms of the new player ecosystem, it implements the “Su Meng large model,” which the company has developed in-house and completed the record filing for, by rolling out an AI lounge in “Kartrider: Drifting.” This endows game characters with emotional memory and real-time interaction capabilities, creating an innovative experience of “emotional symbiosis.” It successfully upgrades AI from functional applications to emotional interaction. The related technical capabilities can be reused across the company’s entire product matrix, opening up broad space for long-term experience innovation.

At the performance briefing, Chen Xiangyu, Chairman of the board of directors of Dream Games, said: “The company adheres to long-termism. Relying on a steadier operating foundation and more resilient strategic initiative, it will focus on its core game business, strengthen product innovation and technology empowerment, and move into a new stage of high-quality development with a more determined pace. We always believe that time will reward every company willing to do the hard work and do the long-term correct things.”