Changyou International Group Limited reported interim results for the six months ended 30 June 2026, posting a turnaround to profit even as revenue contracted.

Revenue and profitability • Revenue declined 14.60% year-on-year to RMB77.20 million, reflecting lower point-redemption volumes amid tighter issuance controls by partners. • Gross profit edged up 0.75% to RMB19.78 million; gross margin improved to 25.6% from 21.7% a year earlier, supported by supply-chain optimisation and higher conversion efficiency on the “Changyou” platform. • The Group recorded a profit attributable to owners and non-controlling interests of RMB3.74 million, reversing a RMB3.79 million loss in 1H25. Profit attributable to equity shareholders remained negative at RMB4.59 million, but narrowed by 1.48% year-on-year. • Basic and diluted loss per share were RMB0.25 cent, versus RMB0.26 cent in 1H25.

Cost structure and expenses • Cost of sales fell 18.83% to RMB57.43 million, outpacing the revenue decline and lifting margins. • Administrative expenses contracted 3.15% to RMB9.52 million following ongoing cost-control measures. • Research and development spend decreased 21.54% to RMB2.70 million. • Selling and distribution expenses were stable at RMB1.95 million. • Finance costs dropped 81.60% to RMB0.98 million, benefiting from an RMB8.31 million net foreign-exchange gain that offset interest on convertible bonds and shareholder loans.

Balance sheet and liquidity • Cash and cash equivalents increased to RMB38.94 million from RMB33.64 million at end-2025, driven by RMB9.73 million net operating cash inflow. • The Group shifted to net current liabilities of RMB101.66 million (end-2025: net current assets of RMB10.85 million) following the reclassification of HK$126.00 million (RMB118.94 million) convertible bonds to current liabilities. • Total assets were broadly stable at RMB149.06 million, while total liabilities stood at RMB308.00 million, leaving negative equity of RMB158.92 million. • Outstanding borrowings comprised RMB118.94 million in convertible bonds maturing April 2027 and RMB58.25 million in shareholder loans due July–September 2027. • The Group retains undrawn shareholder loan facilities of HK$48.54 million (approximately RMB42.16 million) and is negotiating maturity extensions to support going-concern status.

Operational metrics • Gross merchandise value (GMV) on the Changyou Alliance platform fell 11.10% year-on-year to RMB109.10 million. • Registered users reached 309.7 million, up 16.50 million since December 2025, aided by partnerships with platforms such as WeChat, Alipay, Didi and iQIYI.

Capital expenditure and commitments • Capex was minimal at RMB0.00 million in right-of-use assets and RMB0.00 million in property and equipment additions during the period. • No pledged assets, material acquisitions, disposals, or capital commitments were reported.

Dividends • The Board declared no interim dividend for 1H26.

Outlook Management intends to deepen integration with China Mobile, broaden high-traffic scenarios, and continue optimising its SaaS digital-points platform to support stable growth, while relying on financial backing from Century Investment to address liquidity needs and upcoming debt maturities.