GALA TECH HOLD Interim Profit Jumps 166% as World Cup Spurs Game Revenues

Bulletin Express
Aug 27

GALA TECH HOLD reported strong interim results for the six months ended 30 June 2026, buoyed by record performance from its flagship sports titles during the FIFA World Cup period.

Revenue climbed 25.7% year-on-year to RMB 590.42 million, powered chiefly by self-published mobile games such as “Total Football” and “NBA Rivals.” Gross profit advanced 32.80% to RMB 315.53 million, lifting gross margin to 53.4% from 50.6% a year earlier.

Marketing investment more than doubled to RMB 151.34 million as the group intensified user-acquisition efforts around the World Cup, yet disciplined cost control and higher operating leverage supported profitability. Operating profit increased 8.13% to RMB 59.96 million, while net investment gains of RMB 76.79 million—mainly unrealised and realised gains on equity holdings—boosted overall earnings.

Profit before tax surged 147.72% to RMB 144.43 million. After a slight reduction in tax charges, net profit attributable to shareholders leapt 165.48% to RMB 142.58 million, translating to basic earnings of RMB 1.13 per share.

Cash and cash equivalents stood at RMB 481.55 million, up from RMB 452.50 million at end-2025, underpinning a current ratio of 2.4 times. The balance sheet remains debt-light with a gearing ratio of 0.04 times.

No interim dividend was declared as the Board prioritises investment in new game development and overseas expansion for the remainder of 2026. Management highlighted plans to extend “Total Football” into North America, Latin America and the Middle East, continue refining “NBA Rivals” and “Clutch Hit Baseball,” and progress the fishing simulation title “Codename: Fishing Master,” now in its second paid beta test.

Post-period, the company repurchased 3.03 million shares for HKD 17.94 million under its 2025 Share Award Scheme and disposed of 3,000 shares of Micron Technology for RMB 20.53 million, recognising an additional gain of RMB 13.00 million.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10