Giant Network Posts 176% Net Profit Surge in H1, Allocates Over 70% of Earnings to Dividends

Deep News
Aug 27

Giant Network Group Co.,Ltd. released its semi-annual report for 2026 on the evening of August 26. During the first half of the year, the company generated operating revenue of RMB 4.689 billion, a year-on-year increase of 182.08%. Net profit attributable to shareholders of the listed company reached RMB 2.144 billion, surging 175.96% from the prior-year period.

Excluding non-recurring gains and losses, the net profit attributable to shareholders stood at RMB 2.236 billion, up 177.23% year-on-year. Cash flow from operating activities came in at RMB 2.072 billion, a rise of 178.93%. Notably, revenue from gaming-related businesses hit RMB 4.684 billion, climbing 182.69%, while mobile gaming revenue jumped 236.18% to RMB 4.368 billion.

The robust performance was largely driven by the blockbuster mobile title "Supernatural Action Group," which continued to deliver substantial revenue. Meanwhile, mature products such as the "Zhengtu" series and "Balls Bounce" maintained steady income through refined long-term operations. The daily active users (DAU) of "Supernatural Action Group" recently surpassed 12 million, marking another growth milestone on top of the 10 million DAU base achieved in February of this year. As of the end of the first quarter of 2026, the game's cumulative registered users exceeded 200 million, with total gross billings surpassing RMB 5 billion.

According to the semi-annual report, "Original Zhengtu" saw a 3.67% year-on-year increase in new users during the first half, while its average daily active users remained roughly flat compared to the same period last year. "King Zhengtu" added 14.17 million new users in the first half, leveraging mini-program channels across platforms like WeChat, Douyin, and Kuaishou. The core user base of the PC version of "Zhengtu" stayed stable.

Among products in development, "Mingjiang Sha" has amassed over 1 million registered users since the second quarter, with DAU and monthly active users (MAU) trending upward. Its social media following exceeds 800,000, and cumulative exposure has surpassed 300 million.

In its 2026 interim profit distribution plan, Giant Network Group Co.,Ltd. proposes a cash dividend of RMB 8 per 10 shares to all shareholders. Based on the calculation base of 1.894 billion shares as of the disclosure date, the total cash dividend amounts to approximately RMB 1.515 billion, fully funded by the company's own capital. This represents roughly 70.65% of the company's first-half net profit attributable to shareholders of RMB 2.144 billion, meaning the company plans to distribute over 70% of its H1 earnings as cash dividends.

The company also unveiled its "Shareholder Dividend Return Plan for the Next Three Years (2026-2028)." The plan stipulates that, under normal operating conditions and provided cash dividend conditions are met, the company will generally distribute cash dividends annually. For the fiscal years 2026 through 2028, if there are no major investment plans or significant cash expenditures, the cash dividend amount will account for no less than 70% of the year's net profit attributable to shareholders. In cases where large investment plans or substantial cash outlays exist, the ratio will remain no lower than 20%, subject to the appropriate approval mechanisms. Both the interim dividend proposal and the three-year return plan are pending shareholder approval.

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