Warning: China Launches AI Attack on America

China just launched what can only be described as an AI attack on America. And according to Louis Navellier, the legendary investor who picked Nvidia before shares exploded as high as 3,423%... President Trump is already planning a counter attack. And it's creating an incredible opportunity for you in this small group of AI stocks.

XD Gets A Boost From New Titles

The Bamboo Works
March 12, 2025

The mobile game developer turned a profit last year, helped by the release of new titles, but a lack of games under development could dent future growth

Key Takeaways:

  • The company is expecting to turn a profit of between 860 million yuan and 940 million yuan in its annual earnings 
  • But it gained only four new game licenses last year, half as many as in 2023

Profits are rolling into China's gaming industry after the blockbuster success of Black Myth: Wukong last year.

The hit release from the Game Science studio injected fresh life into the gaming scene, helping to shake off the effects of regulatory controls and brittle consumer confidence. And smaller gaming companies are also feeling the benefit. 

Mobile gaming firm XD Inc. (2400.HK) recently projected better-than-expected annual profits after releasing new titles such as Heartopia and GoGo Muffin.

In a statement about its earnings outlook, XD forecast revenue of between 4.96 billion yuan ($680 million) and 5.04 billion yuan for 2024, a jump of around 46% to 49% from the prior-year figures. The increased turnover was projected to push the firm's bottom line into the black, with a net profit of between 860 million yuan and 940 million yuan compared with a loss of 65 million yuan in 2023. 

The positive profit alert went down well with investors. The XD share price rose 15.37% the day after the statement, taking the firm's market value close to HK$18 billion.

The gaming industry demands hefty upfront spending for creative development, but with an uncertain outcome. Developers can spend heavily on new games only for them to flop with consumers and deliver disappointing returns. With low odds of success, producing a national hit can be like hitting the lottery jackpot for companies such as XD.

Banking on new titles

The impending profits represent a plot twist for XD, which derives the bulk of its income from games while also running a platform for avid players. With falling income from older games and a big creative budget, the company had reported a string of losses, although the red ink had been receding. Net losses went from 860 million yuan in 2021 to 550 million yuan a year later and shrank further to 83.03 million yuan in 2023. Business picked up in the first half of last year when revenue rose 26.7% to 2.22 billion yuan, gross profit jumped 44.3% to 1.5 billion yuan and net profit more than doubled to 205 million yuan.

The turnaround was driven by the launch of new games such as GoGo Muffin, Sword of Convallaria and Heartopia. The core game business was the firm's main revenue engine, with turnover rising nearly 30% to 1.49 billion yuan in the first half of 2024 from the year-earlier period.

Gaming operations including in-game sales and game purchases are the company's main source of revenue. By the end of June last year, XD's game-related income accounted for 66.9% of total revenue, with the remainder coming from its TapTap game platform, which charges promotional fees.

TapTap is an interactive forum where players can connect and view game recommendations, similar to the Steam platform operated by the U.S. game developer Valve. Fans can download games through official channels via the TapTap site, as well as discussing their experiences with other players. 

Monthly active users of TapTap in the China market rose 27.3% to 43.24 million in the first half of last year, with players attracted by the heavily promoted new games.

The two new XD releases last year were well-received by the market. GoGo Muffin repeatedly topped Apple's game download rankings in Hong Kong, Macao and Taiwan after it was launched there in early 2024. Heartopia enjoyed more than 25 million downloads its first month after it debuted in mainland China in July, also taking the top spot among Apple's game rankings. According to TapTap data, the game has been downloaded over 39 million times. 

In with the new 

However, new games can drive traffic away from existing titles, cannibalizing sales. For example, the appeal of Sausage Party has declined since its 2018 debut, with falling numbers of paying and active monthly users. Novelty is the key to growth in the industry as developers need to create enough revenue from new products to offset waning sales from established games.

A report on China's game industry released at the end of last year found that  sales rose 7.53% to 325.78 billion yuan in 2024 from the previous year, and the number of domestic game users edged up 0.94% to 674 million, both industry records. 

But sales growth decelerated from a pace of just under 14% in 2023, even though 32% more games were approved than in the prior year. The figures point to slowing momentum overall and could signal increased competition in the market.

Promoting new games is an expensive business. XD spent a whopping 700 million yuan on marketing in the first half of last year, more than double the outlay for the same purpose in the year-earlier period. More was spent on marketing than on R&D, which fell 20% to 420 million yuan, suggesting the flow of new games is slowing down.

According to information from China's publication regulator, XD obtained only four game licenses last year, half the total it was awarded in 2023. Dwindling game reserves could pose a risk to revenue going forward. 

The game developer has been trading at a price-to-earnings (P/E) ratio of 606 times on the back of its earnings base and price surge. With profits rising to around 900 million yuan for 2024, the ratio is expected to fall back to 18 times, lower than the 28 times for Tencent (0700.HK) but higher than the multiple of 16 for NetEase (NTES.US; 9999.HK). Considering the relatively smaller scale of its business compared to NetEase, the XD stock is not cheap at all. 

Continue Reading...

Popular

Qatar will send natural gas to Syria to increase its meager electricity supply

DAMASCUS (AP) — Qatar will provide natural gas supplies to Syria with the aim of generating 400 megawatts of electricity a day, in a measure to help address the war-battered country’s severe electricity shortages, Syrian state-run news agency SANA reported Friday.

Nvidia Is About to Shock the World: March 17th - Ad

Jeff Brown, the tech legend who picked shares of Nvidia in 2016 before they jumped by more than 22,000%, is warning everyone to... Mark this date on your calendar: March 17th! That's when Nvidia could help send shares of this Elon Musk supplier skyrocketing higher.

Billionaire Airbnb Founder Joe Gebbia Joins Elon Musk At DOGE

Joe Gebbia, co-founder of Airbnb and prominent entrepreneur, has joined the Trump administration to serve alongside Elon Musk in the Department of Government Efficiency. 

A 10% drop for stocks is scary, but isn't that rare

NEW YORK (AP) — The U.S. stock market has just dropped 10% from its high set last month, hurt by worries about the economy and a global trade war.

Trump Bombshell to Hit by April 30th? - Ad

According to Louis Navellier, the legendary investor who picked Nvidia before shares exploded as high as 3,423%... Before April 30th, President Trump could make a shocking AI announcement... Sending these stocks exploding higher.

Palantir Calls For 'Software-First Approach' As Pentagon Spends Under 1% On Modern Warfare

Palantir Technologies Inc. Senior Counselor Samantha Clark has urged the Pentagon to embrace commercial software solutions or risk lagging behind global adversaries in an increasingly data-driven battlefield.

Czech power company says its net profit reached $1.32 billion in 2024

PRAGUE (AP) — The Czech power company CEZ said Thursday its 2024 net profit reached 30.5 billion Czech koruna, or crowns, ($1.32 billion), up from 29.6 billion koruna the previous year and higher than the company expected.

Buffett, Bezos, and Congress Are Betting Big on This One Sector - Ad

This corner of the market is NOT artificial intelligence... Crypto... or any other familiar sector or strategy. Instead...It's a sector that the U.S. Gov't spends 6-TIMES more on, than our own ENTIRE military defense budget. Don't let recent market uncertainty keep you in the dark on this massive opportunity.

Kenya-based content moderators mourn Nigerian colleague who 'was desperate to go home'

NAIROBI, Kenya (AP) — Technology workers in Kenya held a vigil Tuesday for a colleague who died in unclear circumstances after she was unable to travel to her home in Nigeria for two years.

Australia won't retaliate against 'unjustified' US tariffs on steel and aluminum

MELBOURNE, Australia (AP) — Australian Prime Minister said Wednesday that U.S. tariffs on Australian steel and aluminum were unjustified, but his government would not retaliate with its own tariffs.

Exposed: 3 Cent Crypto to Explode March 24th? - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on March 24th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

Law firm sues over Trump executive order that seeks to suspend security clearances

WASHINGTON (AP) — A during the 2016 presidential campaign sued the federal government Tuesday over an executive order that seeks to strip its attorneys of security clearances.

Canada's Couche-Tard's chief stresses 'friendly' interest in Japan's 7-Eleven chain

TOKYO (AP) — Canada’s Alimentation Couche-Tard reaffirmed Thursday that it is determined to acquire Seven & i Holdings, although the operator of Japan’s top convenience store chain has .

Revealed: Trump's New Deal - Ad

Inside the President's covert plan to recapture forgotten U.S. territories, seize precious resources and spark a $20 trillion wealth wave. Stocks connected to Trump's New Deal are already surging -- discover the #1 investment to make before May 30.

Asian shares are mixed after Wall Street briefly dips more than 10% below its record

TOKYO (AP) — Asian shares were mixed on Wednesday as investors weighed the impact of President Donald Trump’s tariffs after another day of losses on Wall Street.

3 ETFs With Super Micro Computers Exposure, Enjoy AI Surge

Super Micro (NASDAQ: SMCI) is a top player in AI infrastructure with growing demand and potential for investors. ETFs like SMH, BOTZ and IGV can benefit from its growth.

The $20 Trillion Secret of Room 3330 - Ad

Developed by the U.S. military 79 years ago, this controversial technology is about to change American life forever: Elon Musk has already funneled $6 billion to resurrect this covert project -- and the companies involved are minting 10,000 millionaires every week [Goldman Sachs].

Mark Zuckerberg Offered China Full Censorship Control And User Data Access, Says Meta Whistleblower: 'Working Hand In Glove With The Chinese Communist Party'

A former Meta executive has alleged that the company, under Mark Zuckerberg, was willing to grant China censorship powers and access to user data in a failed attempt to enter the market—a move now under SEC scrutiny.

TeraWulf Stock Tanks: Death Cross Spells Trouble For Bitcoin Miner

TeraWulf Inc. (NASDAQ:WULF) hit a technical roadblock, forming a Death Cross — a classic bearish signal that suggests trouble ahead.

Millionaire Trader: "My No. 1 Stock of the Decade" (Revealed Free) - Ad

The stock revealed right here just may be millionaire trader Jeff Clark's favorite stock ever. Because this one stock alone has been responsible for some of the biggest gains he's ever handed my readers... 195% in under a month... 85% in 14 days... 176% in 5 weeks... 120% in under 3 months... 55% in two days... 138% in 8 days... And even 222% in 8 days.

Mohamed El-Erian Says 'Fed Put' Optimism Rises As Inflation Cools—But 'Trump Put' Hopes Are Shaken

U.S. markets rallied on Wednesday after February's inflation report came in softer than anticipated, bolstering expectations for Federal Reserve rate cuts while investors reassess the economic impact of President Donald Trump administration's policies.

Rayonier Agrees To $710 Million New Zealand JV Sale, Aims To Strengthen US Operations And Reduce Debt

Rayonier agrees to sell its 77% stake in New Zealand joint venture for $710 million, aiming to reduce leverage and return capital to shareholders.

Stocks to Crash on March 16, 2026? Here's Compelling Reason Why - Ad

Perhaps no one on or off Wall Street has been more accurate calling the bull and bear turns of the past 7 years. From the bear markets of 2018 and 2022... to the roaring bull runs of 2021, 2023, and 2024. And now, Marc Chaikin is predicting the next crash will start March 14, 2026. If you have money in the markets, Chaikin's thesis is a must-see.

South Africa plans to spend more on health and defense after the US cuts aid

JOHANNESBURG (AP) — Lawmakers in South Africa laid out plans to shore up the budgets for health and defense but also put up value added tax by 0.5%, a move that will raise the cost of living as consumers pay more for goods, including food, and services.

The Trump Dump Is Starting; Get Out of Stocks Now? - Ad

You're still in stocks...Are you nuts?! Yes, I fully expect the Trump presidency will be the best time to get rich in American history...With 12,000% gains available soon. But, I'm not talking about stocks, nor bitcoin. Over the next 12 months, a modest $900 investment...Could grow to a life-changing $108,000.

Apple's AR Glasses Approach Aside, Google Makes Its Move On Eye-Tracking Tech With $115 Million AdHawk Acquisition: Report

As Apple reportedly reconsiders its AR glasses strategy, Google is moving forward with a $115 million acquisition of eye-tracking startup AdHawk to bolster its next-gen smart glasses efforts.

Wisconsin appeals court overturns ruling allowing for emailing ballots to disabled voters

MADISON, Wis. (AP) — A Wisconsin appeals court ruled Wednesday that disabled people are not allowed to receive absentee ballots by email, overturning a less than three weeks before the .

13-Second Trump Video Could Trigger AI Shock - Ad

Louis Navellier, the legendary investor who picked Nvidia before shares exploded as high as 3,423%... Just released a video with this 13-second Trump clip about the current AI boom. Please, do NOT buy any AI stock before watching that clip. What President Trump said in that clip could have implications for this AI boom.

China learned from Trump's first trade war and changed its tactics when tariffs came again

WASHINGTON (AP) — The leaders of both Canada and Mexico got on the phone with President Donald Trump this past week to on their countries, but China’s president appears unlikely to make a similar call soon.

Indonesian fishermen sue Bumble Bee and say the canned tuna giant knew of abuse in its supply chain

SAN DIEGO (AP) — Lawyers representing four Indonesian fishermen who say they were beaten and trapped on vessels that were part of the global supply chain that provided tuna to Bumble Bee Seafoods filed a lawsuit Wednesday against the canned seafood giant.

Legendary Investor "Man Who Calls It All" Issues Stunning Final AI Prediction - Ad

Wall Street legend Shah Gilani--dubbed "the man who calls it all"--has predicted market moves for decades . Now, he's revealing his biggest AI pick yet--a little-known stock billionaires are loading up on. Act before March 19 for the best shot at max gains!

SpaceX delays flight to replace NASA's stuck astronauts after launch pad problem

CAPE CANAVERAL, Fla. (AP) — A launch pad problem prompted to delay a flight to the International Space Station on Wednesday to replace NASA's .

Tesla Rival BYD Raises $5.64 Billion Through Share Placement, Wants To Use Funds For Global Domination

BYD Company Limited, the world's leading electric vehicle manufacturer for three consecutive years announced a significant capital raise through a placement of new H shares to fund its ambitious global expansion plans and research initiatives.

Washington Won't Save You--but This 4-Step Plan Might - Ad

America's economy is unraveling--soaring costs, skyrocketing debt, and Wall Street insiders dumping stocks. This isn't a recession--it's an economic breakdown. Stocks could crash 50%, real estate 40%, and inflation will eat your savings. But history shows: the biggest crashes create the biggest fortunes--if you act now!

Cathie Wood's Ark Invest Continues To Load Up On Tempus AI, Dumps Bitcoin-Focused Block In Tech Meltdown Aftermath

On Tuesday, Cathie Wood‘s Ark Invest executed notable trades, including significant activity involving Tempus AI Inc. (NASDAQ:TEM), Block Inc. (NYSE:XYZ), and DraftKings Inc.<

Trump is buying a Tesla. A look at the harsh things he's had to say about EVs over the years

WASHINGTON (AP) — President Donald Trump, who's to show loyalty to company CEO , has had plenty to say about electric vehicles over the years. Most of it is not good.

Own AI Stocks? Do This Before March 17th - Ad

This tiny tech--smaller than a quarter--could ignite the next AI boom by March 17th! It's powering Elon Musk's $9T project, and one "silent partner" stock could skyrocket. If you missed Nvidia's 22,000% run, this could be your second chance. Click now--before it's too late!

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright trendadvisor.net
Privacy Policy | Terms of Service