Easou Technology Holdings Limited reported a 7.9% year-on-year rise in revenue to RMB 412.37 million for the six months ended 30 June 2026, driven by higher contributions from online reading and a near fivefold jump in overseas game-publishing income.

\n\nGross profit climbed 25.5% to RMB 187.66 million, lifting gross margin to 45.5% from 39.1% a year earlier. The improvement was largely attributable to the stronger mix from high-margin game-publishing revenue, which surged 478.7% to RMB 38.61 million.

\n\nDespite the stronger top-line and margin, profit attributable to shareholders dropped 57.2% to RMB 4.45 million as operating expenses expanded. Selling and distribution costs jumped 37.4% to RMB 145.55 million, fuelled by higher marketing spend on overseas short-form dramas and gaming products. R&D outlays rose 23.6% to RMB 27.58 million, while administrative expenses increased 28.3% to RMB 10.73 million.

\n\nSegment-wise, digital marketing services remained the largest revenue contributor but slipped 6.1% to RMB 216.16 million due to reduced client advertising budgets. Online reading platform services grew 7.1% to RMB 148.90 million, supported by ongoing free-reading promotions. Other digital content revenue advanced 38.5% to RMB 8.69 million.

\n\nOperational cash outflows reached RMB 46.86 million, versus a RMB 1.93 million inflow a year earlier, pressured by working-capital swings. Cash and cash equivalents declined 28.0% to RMB 327.63 million, while financial assets at fair value through profit or loss increased to RMB 202.44 million following new purchases. Interest-bearing borrowings rose 22.5% to RMB 174.50 million, lifting the gearing ratio to 18.9% from 14.9%.

\n\nEasou Technology executed share buybacks totaling 2.55 million shares in June 2026 for HK$4.47 million, now held as treasury shares. The board declared no interim dividend.

\n\nStrategically, the company maintained R&D focus on its proprietary recommendation engine and AI-driven initiatives, and it is pursuing acquisitions of Yingke Internet (Hong Kong) Limited and Yunlang Technology (HK) Limited for HK$122.67 million and HK$39.69 million, respectively, to bolster game publishing, AI capabilities and e-commerce ventures; both transactions remain pending completion.

\n\nLooking ahead, management plans to deepen AI technology development, expand overseas short-drama and gaming operations, and explore real-world asset (RWA) digitisation and Web3.0 opportunities while maintaining disciplined liquidity and cost controls.