Is XD Inc. profitable in 2025?

Yes. XD Inc. reported audited FY2025 revenue of RMB 5.76 billion, up 15% year over year, and net profit of RMB 1.66 billion, up 86% year over year, according to its March 26, 2026 annual results announcement.

XD Inc. is founder controlled, with co-founders Huang Yimeng (Chairman/CEO) and Dai Yunjie (President) remaining substantial shareholders as of a January 12, 2024 HKEX filing. It has traded publicly on the Hong Kong Stock Exchange as 02400.HK since December 12, 2019.

Who is XD Inc.'s biggest competitor?

Tencent Games is XD's largest incumbent rival, with its MyApp store holding roughly 13.7% MAU share as China's largest third-party Android app store as of June 2026, dwarfing TapTap's distribution scale in core gaming.

Could AI replace XD Inc. or TapTap?

Unlikely in the near term. XD attributes 2025 TapTap profit growth partly to refined ad algorithms, per its March 5, 2026 profit alert, but this is monetization efficiency, not user growth, and TapTap's network effects and no-commission developer relationships remain the moat AI tools don't replicate.

Is TapTap still growing its user base?

Growth has stalled. TapTap's PRC average MAU was 44.0 million in 2024 (+23% YoY) but stayed roughly flat through 2025, with a March 26, 2026 TipRanks headline noting profit nearly doubled 'despite user declines in gaming.'

Is XD Inc. stock volatile?

Yes. XD's 52-week share price ranged from roughly HK$27-40 to a January 2026 high of HK$92.45 as of July 22, 2026 per GuruFocus, and analysts are split, with Citi rating it 'Neutral (High Risk)' at HK$82 versus another Buy rating at HK$83.80 in May 2026.

Gaming companies · China

XD Inc.

xd.com ↗

Chinese game publisher that runs TapTap, a zero-commission game discovery app.

Defensible for now

Assessed 23 July 2026 · Evidence as of 23 July 2026

Real protection, with named pressure against it.

On the recordSince 23 July 2026 · Checkable from Aug/Sept 2026 · Every call on the record Checkpoint: H1 2026 interim results reveal whether TapTap China MAU stayed flat or declined

The call

XD makes money and keeps founder control, but TapTap's user growth has stalled and its games business depends on hits with no protection from Tencent or NetEase.

XD Inc. makes money from games and from TapTap, a Chinese app where players find new games without paying commission fees. TapTap is hard for big rivals like Tencent or phone makers to copy because they make money from taking a cut of sales, so they cannot offer zero commission without hurting their own business. However, TapTap has stopped growing (flat user numbers), the company's profits now come from squeezing more money out of the same players rather than adding new ones, and the games business depends on hitting a few big successes instead of having lasting advantages against Tencent or NetEase. The key question is whether TapTap users start dropping off in late 2025 or early 2026: if they do, the argument that TapTap is hard to replace falls apart.

Why

AI pressure: ByteDance's Douyin AI feed and generative AI game-creation tools. AI feeds can route players straight to games and cheap AI-made clones flood the market, cutting into why players need TapTap's curation. Could AI do the core job? Only partly.

Bigger players: Tencent Games and ByteDance. Tencent's WeChat/QQ distribution already dwarfs TapTap's reach, and ByteDance's short-video apps funnel players to games directly. Could a giant copy it? Probably.

What protects it. OEM app stores like Huawei AppGallery can't copy TapTap's zero-commission model without gutting their own take-rate income.

What would change this call

TapTap China MAU figure in H1 2026 interim results (Aug/Sept 2026). Decline would signal discovery platform losing users to rival channels.
Whether Tencent or ByteDance launches a zero-commission game discovery app in China. Would show a rival directly copying TapTap's model and moat eroding.
XD's game pipeline announcements for 2026-2027 replacing Etheria: Restart. Gap in hit titles would show games segment losing ground to NetEase/Tencent output.

Key numbers

FY2025 revenue RMB 5.76B, up 15% YoY (2026-03-26)
TapTap China MAU flat near 44M in 2025 (2026-03-27)
US$280M convertible bonds due 2026 (2024-01-18)

Named risks

TapTap China MAU is flat to declining, undermining the platform growth story despite profit gains. Severity: high
Games segment (67% of revenue) is hit-dependent with no structural moat against Tencent or NetEase. Severity: high
Chinese game license (banhao) approval freeze could recur and stall new title launches. Severity: medium
US$280 million convertible bonds due 2026 create near-term capital structure pressure. Severity: medium
Analyst sentiment is split (Neutral High Risk vs Buy) and stock has swung between HK$27 and HK$92 in 52 weeks. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Tencent Games	contesting	MyApp holds ~13.7% MAU share as China's largest third-party Android store, as of June 2026
NetEase	contesting	Competes head to head for mobile RPG and gacha-style game audiences in China
OEM app stores (Huawei, Xiaomi, OPPO, Vivo)	gaining on	TapTap's zero-commission model structurally undercuts their ~50% channel commission model
Bilibili	contesting	Invested $123 million in TapTap in April 2021 while also competing in game publishing and community discovery
miHoYo	contesting	Investor in TapTap and major competing developer (Genshin Impact), a co-opetition dynamic per company disclosures

Questions people ask

Is XD Inc. profitable in 2025?: Yes. XD Inc. reported audited FY2025 revenue of RMB 5.76 billion, up 15% year over year, and net profit of RMB 1.66 billion, up 86% year over year, according to its March 26, 2026 annual results announcement.
Who owns XD Inc.?: XD Inc. is founder controlled, with co-founders Huang Yimeng (Chairman/CEO) and Dai Yunjie (President) remaining substantial shareholders as of a January 12, 2024 HKEX filing. It has traded publicly on the Hong Kong Stock Exchange as 02400.HK since December 12, 2019.
Who is XD Inc.'s biggest competitor?: Tencent Games is XD's largest incumbent rival, with its MyApp store holding roughly 13.7% MAU share as China's largest third-party Android app store as of June 2026, dwarfing TapTap's distribution scale in core gaming.
Could AI replace XD Inc. or TapTap?: Unlikely in the near term. XD attributes 2025 TapTap profit growth partly to refined ad algorithms, per its March 5, 2026 profit alert, but this is monetization efficiency, not user growth, and TapTap's network effects and no-commission developer relationships remain the moat AI tools don't replicate.
Is TapTap still growing its user base?: Growth has stalled. TapTap's PRC average MAU was 44.0 million in 2024 (+23% YoY) but stayed roughly flat through 2025, with a March 26, 2026 TipRanks headline noting profit nearly doubled 'despite user declines in gaming.'
Is XD Inc. stock volatile?: Yes. XD's 52-week share price ranged from roughly HK$27-40 to a January 2026 high of HK$92.45 as of July 22, 2026 per GuruFocus, and analysts are split, with Citi rating it 'Neutral (High Risk)' at HK$82 versus another Buy rating at HK$83.80 in May 2026.

Timeline

2026-07-21XD repurchased 180,000 shares as part of ongoing buyback activity
2026-05-28All resolutions passed at 2026 AGM with ~97.3% of voting shares
2026-03-27FY2025 audited results filed: TapTap gross margin 86.2%, premium game revenue up 15.6%
2026-03-26FY2025 results: revenue RMB5.76B (+15% YoY), net profit RMB1.66B (+86% YoY)
2026-03-05XD issued positive profit alert guiding FY2025 revenue and profit growth
2026-01XD launched HK$400 million automatic share buy-back program
2024-09-06XD completed acquisition of remaining 35% of X.D. Global (HK) Limited
2024-01-18XD disclosed repurchase of tranches of its US$280M 1.25% convertible bonds due 2026
2021-04Bilibili invested $123 million in TapTap
2019-12-12XD Inc. listed on HKEX Main Board, stock code 02400.HK

Revision history

23 July 2026

First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.

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