CR Sanjiu 1H net income 1.82 billion yuan

CR Sanjiu 1H net income 1.82 billion yuan

CR Sanjiu has reported a significant increase in its net income for the first half of 2025, reaching 1.82 billion yuan. This strong performance comes amidst a robust market for Chinese tech stocks and highlights the company's resilience and growth potential. The results reflect a strategic focus on enhancing commercialization efficiency and optimizing revenue streams, particularly in the mobile games and advertising sectors.

Key financial highlights include:
- Revenue Growth: CR Sanjiu's revenue grew by 26% year-on-year to 7.306 billion yuan, driven primarily by the mobile games and advertising businesses.
- Gross Margin: The company's gross margin improved to 34.9%, up from 25.0% in the same period last year.
- Adjusted Net Income: Adjusted net income increased by 137.35% year-on-year to 0.236 billion yuan, marking a substantial turnaround.

The positive net income is attributed to several factors, including:
- Mobile Games Revenue: Revenue from mobile games increased by 84% year-on-year, reaching 1.823 billion yuan, largely driven by the success of exclusive licensed games like "Three Kingdoms: Strategizing the World."
- Advertising Revenue: Advertising revenue also saw a notable increase of 28% year-on-year, reaching 2.094 billion yuan, thanks to optimized advertising products and improved efficiency.
- Operational Efficiency: Cost of goods sold and operating expenses remained stable, while research and development expenses decreased by 15% year-on-year.

CR Sanjiu's chairman and CEO, Chen Rui, commented on the company's achievements, stating that the growth in daily active users and monthly active users, along with the increased average daily usage time, underscores the company's strong user engagement and market position.

Despite the positive outlook, investors should remain vigilant to potential risks, such as regulatory uncertainties and sector volatility. CR Sanjiu's strategic focus on Chinese tech stocks, as reflected in the portfolio adjustments by HHLR Advisors, indicates a bullish outlook on the sector's growth potential [3].

References:
[1] https://www.moomoo.com/news/post/76576633/record-tr4cking-news-nvidia-amd-adjust-to-new-rules-of-the-game-with
[2] https://technosports.co.in/snapdragon-8-elite-2-tsmc-3nm-powerhouse/
[3] https://www.ainvest.com/news/hhlr-advisors-q2-portfolio-90-chinese-stocks-focus-tech-consumer-firms-webull-investment-2508/