Wemade Co Ltd (XKRX:112040) Q4 2025 Earnings Call Highlights: Revenue Surge and Strategic …

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Wed, February 11, 2026 at 10:00 PM GMT+9 3 min read

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Release Date: February 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Wemade Co Ltd (XKRX:112040) reported a 17% quarter-on-quarter increase in consolidated revenue for the fourth quarter, driven by the success of the new title Legend of Emir Global and a significant IP licensing agreement in China.

The company achieved a full-year operating profit of CNY10.7 billion, up 51% year-on-year, reflecting efficient cost management and operational discipline.

Wemade Co Ltd (XKRX:112040) announced a dividend of approximately CNY10 billion, equivalent to CNY295 per share, as part of its shareholder return initiative.

The launch of Legend of Emir Global has shown a solid revenue trend with stable daily active users, indicating strong retention and a loyal community.

The company successfully integrated its own payment system, Wix Pay, into in-game environments, enhancing payment convenience and security.

Negative Points

Despite the initial interest, the revenue performance of the game Mirror, released in China, fell short of expectations.

A non-operating loss of CNY44.1 billion was recognized due to evaluation loss on investment assets, resulting in a net loss of CNY36.5 billion for the fourth quarter.

The year-on-year decline in full-year revenue was attributed to a high base effect from the previous year's success of Nitros Global.

Operating expenses for the fourth quarter increased slightly due to launch-related costs and impairment losses on advance payments for sports games.

The company's revenue performance in China has been underwhelming, impacting overall financial results.

Q & A Highlights

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Q: Can you provide some updates on the pipeline for this year? A: In 2026, we have already launched MU and China on January 13 and Midnight Workers for Steam on January 29. We plan to release three more titles this year: 4 China, Rows 2, and Year 5. For 2027, we are planning the release of Ti, a console game set in a fantasy world. We have over 20 new releases planned for the mid to long term, with more details to be shared in 2027.

Q: Can you provide more details regarding the proprietary payment scheme? A: Previously, we prioritized ranking on different stores, leveraging Google PC payment more. However, we’ve seen significant cost reductions by using our payment system, as validated by IO2 from EmCoft. For upcoming releases, we plan to increase the use of our proprietary payment system and web store, with results to be shared in 2027.

Story Continues  

Q: What are the financial highlights for the fourth quarter of 2025? A: Our consolidated revenue for the fourth quarter was CNY191.7 billion, up 17% quarter on quarter, driven by the new title Legend of Emir Global and a CNY50 billion payment from the IP licensing agreement for China. Operating expenses were CNY167.5 billion, resulting in an operating profit of CNY24.3 billion. However, a non-operating loss of CNY44.1 billion led to a net loss of CNY36.5 billion.

Q: How did Wemade perform for the full year of 2025? A: Wemade recorded full-year revenue of CNY614 billion, a decline due to the high base effect from Nitros Global’s success in 2024. Operating expenses were CNY603.4 billion, down CNY101.4 billion year on year, reflecting improved cost structure. Full-year operating profit reached CNY10.7 billion, up 51% year on year, due to efficient cost management.

Q: What are Wemade’s strategic plans for 2026? A: In 2026, Wemade will focus on diversifying genres beyond MMORPGs and expanding global capabilities in development and marketing. We plan to make Legends of Emir Global available on Steam and launch flagship titles Night Crows 2 and Mir 5. We aim to drive game-led earnings growth through 2027 and further diversify platforms and genres with the release of the console title Ti.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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