HOMELAND Interactive Technology Ltd. (HOMELAND ITL) released its unaudited interim results for the six months ended 30 June 2026, highlighting a mixed performance marked by revenue contraction but stronger profitability, a reshaped revenue mix, and continued balance-sheet strength.

Revenue and Profitability • Group revenue declined 14.4% year-on-year (YoY) to RMB 621.84 million, primarily reflecting a strategic pull-back in third-party game distribution. • Gross profit rose 23.0% to RMB 391.62 million as cost of sales fell 43.5%; gross margin expanded to 63.0% from 43.8% in H1 2025. • Profit attributable to owners edged up 5.3% to RMB 39.38 million. • On a non-IFRS basis, adjusted net profit surged 29.7% to RMB 97.15 million, after excluding share-based payments, associate and JV losses, and credit-loss provisions.

Revenue Mix Shift • Self-developed mobile games generated RMB 493.87 million, down 2.3% YoY but accounting for 79.4% of total revenue (H1 2025: 69.6%). • Third-party game publishing revenue dropped 62.5% to RMB 73.61 million, reflecting deliberate traffic re-allocation. • Advertising income more than doubled to RMB 54.37 million, lifting its contribution to 8.7% of group revenue (H1 2025: 3.4%).

Operating Metrics • Average daily active users (DAU) slipped 10.7% YoY to 11.0 million, while monthly active users (MAU) grew 4.0% to 62.2 million. • Paying users fell 22.9% to 7.0 million as the company prioritised higher-value players; the share of high-frequency payers rose to 24.7% from 18.0% a year earlier.

Cost Structure and Expenses • Selling and marketing expenses remained steady at RMB 127.32 million. • Administrative and other expenses climbed 63.3% to RMB 98.68 million, driven by higher share-based payments and professional fees. • R&D spending decreased 11.1% to RMB 31.32 million following a shift of outsourced work in-house.

Balance Sheet and Cash Flow • Cash and cash equivalents stood at RMB 628.97 million (31 December 2025: RMB 790.74 million); the group remains debt-free. • Capital expenditure rose to RMB 181.34 million, mainly due to increased investments in financial assets at fair value through profit or loss. • Net cash used in investing activities reached RMB 178.46 million; operating cash inflow totalled RMB 30.84 million.

Shareholder Returns and Capital Management • The Board declared no interim dividend. • During H1 2026 the company repurchased 6.83 million shares for HK$9.40 million, holding them as treasury shares. • An additional 352,000 shares were bought by the 2019 Share Award Scheme trustee for future incentive grants.

Strategic Progress and Outlook HOMELAND ITL continued to emphasise ecosystem-driven operations in its core casual card, board and fishing game portfolio, while pursuing overseas expansion in Japan, Taiwan, South Asia and the Middle East. The company is also developing an AI-native interactive drama platform, “Welucky,” and advancing its enterprise-level AI content-production suite “Joyscene AI.” Management reiterates its focus on refining user quality, diversifying monetisation via advertising, and leveraging AI to enhance development efficiency and open new growth avenues.