Tong Tong AI Social Group Posts Sharp H1 2026 Earnings Rebound on Gaming Momentum and Factoring Stability

Bulletin Express
Aug 28

Tong Tong AI Social Group Limited reported a robust turnaround for the six months ended 30 June 2026, driven by strong expansion in its digital content ecosystem and steady returns from commercial factoring.

Revenue and Profitability • Group revenue rose 16.2 % year-on-year to RMB 235.62 million, supported by a 42.7 % jump in game-related income. • Profit before tax surged to RMB 36.45 million from RMB 7.02 million, aided by a RMB 42.51 million foreign-exchange gain and lower administrative costs. • Net profit reached RMB 31.47 million versus RMB 2.55 million a year earlier. Profit attributable to shareholders climbed 72.6 % to RMB 55.01 million, reflecting negative contributions from non-controlling interests. • Basic and diluted EPS increased to 1.06 RMB cents (1H 2025: 0.61 RMB cents). • The board declared no interim dividend.

Segment Performance Digital Content Ecosystem – Revenue grew 43.2 % to RMB 187.76 million, fuelled by new casual titles such as “Sort in Fluids” and “Dream Color”. – Segment profit more than tripled to RMB 9.95 million. Digital Internet Platform – Tongtong APP revenue contracted to RMB 5.57 million after shifting from membership fees to merchant-service income. – Segment loss narrowed to RMB 42.13 million, reflecting reduced staff costs. Financial Technology Services – Commercial factoring revenue edged up to RMB 41.21 million; segment profit improved to RMB 39.50 million as expected-credit-loss provisions were reversed. – Other financing services revenue dropped to RMB 1.09 million amid tighter domestic loan-facilitation rules, resulting in a RMB 2.22 million loss.

Costs and Expenses Marketing spend increased 32.7 % to RMB 158.33 million to support content promotion, while administrative expenses fell 11.2 % to RMB 79.58 million, primarily due to lower payroll.

Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB 55.45 million (31 December 2025: RMB 27.36 million). • Total borrowings rose to RMB 180.89 million, pushing the gearing ratio to 14.94 %. • Current ratio remained strong at 8.5. • No material contingent liabilities or asset pledges were reported.

Corporate Developments The group recognised a RMB 368.00 million operating right linked to the pending acquisition of Tianjin Guanchuang Mei Tong Electronic Commerce. Management expects regulatory approval for the ownership change by year-end 2026; a shareholder undertaking provides recovery protection should the deal not complete.

Outlook Management intends to deepen the “technology + finance” strategy, expanding AI-driven entertainment initiatives while maintaining prudent risk controls in commercial factoring and exploring compliant avenues in loan facilitation and cross-border payments.

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