On the evening of July 13th, Kaiying Network Co., Ltd. (stock abbreviation: Kaiying Network, stock code: 002517. SZ) released its 2026 semi annual performance forecast. According to the announcement, the company is expected to achieve a net profit attributable to shareholders of the listed company of RMB 1.3 billion to RMB 1.56 billion in the first half of 2026, a year-on-year increase of 36.84% to 64.20%; The net profit after deducting non recurring gains and losses is expected to be 1.02 billion yuan to 1.32 billion yuan, a year-on-year increase of 8.68% to 40.64%; The expected basic earnings per share are between 0.61 yuan and 0.73 yuan, compared to 0.45 yuan in the same period last year.

For the reasons of performance growth, the company stated that the main reason for the performance changes was the good performance of multiple games and user platform businesses such as "Flame Awakening", "Legend of Sword and Fairy: A New Beginning", and "Three Kingdoms: Return to the World" operated during the reporting period, resulting in a significant increase in the company's overall revenue and profit. In addition, due to the impact of the settlement and confirmation of the arbitration case with Legendary IP Co., Ltd. (hereinafter referred to as "Legendary IP") during this reporting period, the company expects the non recurring gains and losses in the first half of 2026 to affect the net profit attributable to shareholders of the listed company by approximately RMB 240 million to RMB 280 million.

Specifically, on February 10, 2026, Shanghai Kaiying, a wholly-owned subsidiary of Kaiying Network, and Legendary IP Co., Ltd. officially signed a "Settlement Agreement" to reach a comprehensive settlement on the long-standing litigation and arbitration issues between the two parties. This move completely resolves the uncertainty brought by long-term litigation and clears the obstacles for Kaiying Network to deepen the ecological operation of the legendary IP in the future. The benefits related to this settlement have had a significant positive impact on the current period's profits, with a total non recurring profit and loss of approximately 235 million yuan in the first quarter. Previously, the company had set aside a provision of 480 million yuan for asset impairment in response to the lawsuit. With the settlement reached, the performance for the first half of 2026 has effectively increased.

Another core engine driving the high performance growth is the unexpected performance of 'Flame Awakening'. This product, with its innovative fusion gameplay of "Legend+Immortal Hero", accurately covers the young user group and once entered the top ten of WeChat mini program game rankings. On the first day of public testing, the number of logins exceeded 500000, and users aged 25-35 accounted for 40%, making it the highest LTV group. It became a key contributor to the significant increase in revenue in the first quarter of 2026, contributing approximately 1 billion yuan in revenue in the first quarter. The success of this product has preliminarily verified the feasibility of the "Legend+X" model, forming a good pattern of resource complementarity and traffic exchange with the company's "996 Legend Box" platform, further activating the ecological value of Legend IP.

Currently, according to Gamma data calculations, the "Legend" IP still maintains strong market vitality, with a market size of 35.55 billion yuan by 2025 and a cumulative value creation of over 370 billion yuan. With the clarification of IP ownership relationships and the acceleration of the legalization process, the market size is expected to exceed 40 billion yuan by 2026, with future growth potential exceeding 100 billion yuan. In this context, Kaiying Network continues to increase its growth certainty with platform advantages, IP authorization, and popular products.