Greedy Play's game revenue dropped by over 30% last year, turning a profit through financial investments and reducing user acquisition costs

On March 27, Hong Kong-listed game company ZhaWan (09890 HK) released its 2025 annual results announcement. The report shows that, due to a sharp drop in game revenue, the company’s 2025 revenue decreased by one quarter compared with 2024; and thanks to an increase in fair value gains on other listed company shares held by ZhaWan, as well as cost-cutting and efficiency measures such as reducing user acquisition spending, the profit attributable to owners of the parent turned from a loss to a profit on a year-on-year basis.

According to the annual report, ZhaWan’s operating revenue in 2025 was RMB 4.158 billion (the same applies below), compared with RMB 5.580 billion in 2024, representing a year-on-year decline of 25.48%; the company’s profit attributable to equity holders (net profit attributable to parent) was RMB 1.487 billion, compared with a loss of RMB 3.62 million in 2024, turning from loss to profit on a year-on-year basis.

It is understood that ZhaWan’s main reason for the revenue decline in 2025 was a significant reduction in revenue from self-operated game marketing. The financial report shows that in 2024, the company’s self-operated game revenue was RMB 4.119 billion, but by 2025 it was directly reduced to RMB 2.767 billion, down 32.83% year on year.

ZhaWan said that in 2025, the company optimized the efficiency of game publishing and marketing, increased its focus on the mini-program game publishing market, which led to a decline in the promotion scale and a reduction in gross merchandise value for some games. At the same time, for games launched in 2024 such as Douluo Continent: Shrek Academy and Beast Lord: New World, their gross merchandise value fell during the reporting period. In addition, the company focused on its online game publishing business and reduced investment in other marketing businesses such as online literature, resulting in a clear decrease in revenue from that segment.

ZhaWan’s turnaround to profit was mainly due to gains from the various financial investment products the company held, totaling RMB 1.882 billion, up from RMB 163 million in 2024, an increase of 1055.3%. It is understood that ZhaWan holds shares in game companies such as Shijia Huatong and Xinghui Entertainment. As game stocks surged significantly in 2025, they contributed large fair value gains. Meanwhile, an increase in revenue from its overseas game publishing business, which has a relatively high operating profit margin, also contributed. In addition, the application of AI technology in game publishing and operations, along with optimization of delivery model algorithms, reduced sales and distribution expenses from RMB 3.517 billion in 2024 to RMB 1.876 billion in 2025, a year-on-year decrease of 46.7%.

Of note, at the end of 2025, the number of employees at ZhaWan Group was 1,239, which was 327 more than in 2024, an increase of over 30%; however, entertainment and hospitality expenses were down 17.7% compared with 2024. Data show that per-capita compensation costs fell from RMB 400,000 in 2024 to RMB 250,000.

The company underwent a major name change last year. In August, “ZhaWan” replaced the company’s original Chinese name, “Zhongxu Future.” In fact, when the company was established in 2015, it was already called “ZhaWan Game.” In 2022, to seek an IPO and expand its business footprint, the company announced that “ZhaWan Game” would be renamed “Zhongxu Future.”

In reality, ZhaWan is a game company in China that has become relatively “mainstream” and widely known. In 2016, ZhaWan Game’s Blue Moon Legend invited celebrities such as Zhang Jiaqi, and Gu Tianle to serve as brand spokespersons. The distinctive Hong Kong-style accent combined with high-frequency ad placements helped the game quickly go viral; internet catchphrases such as “Zhazhai Hui” and “If you’re my brother, come and kan me” also became popular memes across the entire internet, and ZhaWan Game used this to stand out from the gaming industry and build brand awareness. It is worth noting that in February this year, ZhaWan announced that Zhang Jiaqi would serve as a brand spokesperson.

Written and produced by: Nandu N Video reporter Shi Li