What are the financial terms and profit‑sharing structure of the co‑publishing agreement for Goose Goose Duck?

Financial terms & profit‑sharing structure:

The HU YA press release does not disclose exact dollar amounts or a detailed split ratio for the Goose Goose Duck co‑publishing deal with Kingsoft Shiyou. Instead, the announcement stresses that the partnership is “commercially structured to be mutually beneficial,” implying a standard revenue‑share model in which both parties cover marketing and operational costs and then split net proceeds. In similar Chinese‑market co‑publishing arrangements, the publisher (Kingsoft Shiyou) typically receives the larger share of in‑app‑purchase and ad revenue (often 55‑65 % of net revenue) while the platform holder (HU YA) retains the remainder in exchange for its live‑streaming, community‑building, and distribution services. No upfront licensing fee or milestone payments were mentioned, suggesting the agreement is primarily performance‑based.

Trading implications:

Because the deal adds a proven, high‑engagement title to HU YA’s portfolio without a sizable upfront cash outlay, analysts view it as an earnings‑neutral to slightly upside catalyst. The partnership expands HU YA’s monetisation levers in the mainland—its live‑stream platform can drive higher ARPU for Goose Goose Duck, while Kingsoft’s publishing network broadens reach. Traders should watch for the first‑quarter revenue guidance update (expected in the next earnings call); a modest lift in “mobile game publishing” revenue or an upward revision to the gross margin assumption would support a bullish stance on HU YA’s stock. Conversely, any indication that the revenue split is heavily weighted toward Kingsoft or that the game under‑performs its historical 30‑day retention benchmarks would temper the upside. In short, the co‑publish deal is a low‑cost, high‑potential add‑on—maintain a neutral‑to‑slightly‑long position while monitoring upcoming guidance and user‑engagement metrics.