Core Viewpoint - The company, Zhongyou Mobile, opened over 11% higher in the Hong Kong stock market following its announcement to accelerate the development of its IP RWA, WEB3 integrated payment, and WEB3 esports platform [1] Group 1 - The company is focusing on expanding its presence in the IP RWA sector [1] - The company aims to enhance its offerings in WEB3 integrated payment solutions [1] - The company is also developing a WEB3 esports platform [1]

Core Insights - The summer game release schedule for 2025 is less competitive compared to previous years, with fewer standout titles expected to dominate the market [1] - A significant trend in the gaming industry for 2024 is a reduction in R&D spending, with approximately 67.6% of listed game companies cutting their development budgets by an average of 20.79% year-on-year [1] - Despite the reduced competition, there are still several promising titles in the 2025 summer lineup that have the potential to become hits [1] Industry Trends - The gaming industry is experiencing a "development contraction" trend, leading to reduced R&D expenditures among companies [1] - The impact of this contraction on the market is expected to have a delayed effect, suggesting that the current lineup may still yield successful titles despite the overall trend [1] Upcoming Titles - Notable titles for the 2025 summer release include: - "解限机" by 西山居, which has already shown strong performance with over 130,000 concurrent players on its launch day [5] - "远光84" by 莉莉丝, which aims to innovate within the shooting genre with new gameplay mechanics [10] - "碳碳岛" by 腾讯游戏, a low-carbon environmental management game that emphasizes educational elements [12] - "明末:渊虚之羽" by 灵泽科技, anticipated to be a leading title in the single-player market [19] Market Dynamics - The competitive landscape is shifting, with major companies like 腾讯 and 网易 adopting more conservative strategies in their game releases for 2025 [16][24] - The industry is witnessing a potential stagnation in gameplay innovation, as companies focus on refining existing concepts rather than introducing groundbreaking new ideas [47] - There is a growing interest in exploring new game genres and mechanics, particularly in response to the evolving demands of players and the influence of AI technology [47]

Group 1 - The Hong Kong mobile gaming stocks have shown strong performance, with Zhongjiu Mobile (00302.HK) rising over 4% [1] - Bilibili (09626.HK) has increased by more than 3% [1] - Other companies such as NetEase (09999.HK) and Blueport Interactive (08267.HK) also experienced gains [1]

Core Viewpoint - The stock price of Zhongyou Technology Group Co., Ltd. surged by 24.66% to HKD 0.455 per share, reflecting positive investor sentiment driven by recent product launches and strategic initiatives [1] Company Developments - Zhongyou has accelerated its plan to launch 18 games by 2025, having already released 6 titles as of May, including popular games in both mainland China and overseas markets [2] - The company’s recent game releases, such as "Douluo Dalu: Reverse Time" and "Dou Po Cang Qiong: Wushuang," have garnered significant player interest, with over 5 million pre-registrations for the former [1][2] - The upcoming release of "Chat Group Daily Life" on May 27 is expected to further enhance the company’s product lineup [2] Industry Context - The Chinese gaming industry is experiencing a recovery, with Q1 2025 revenues reaching CNY 857.04 billion, a year-on-year increase of 17.99% [2] - The issuance of game licenses has stabilized, with 510 new titles approved in 2025, providing a robust supply of new products to the market [2] - Policy support for the gaming sector, particularly in promoting overseas expansion, is expected to benefit companies like Zhongyou [2] Analyst Insights - Analysts believe that the combination of a rich product pipeline, focus on mini-games and international markets, along with favorable industry conditions and policy support, positions Zhongyou and similar companies for potential growth opportunities [3]

Group 1 - The Hong Kong mobile gaming stocks are experiencing a strong upward trend, with Zhongyou Mobile (00302.HK) rising over 15% [1] - Boyaa Interactive (00434.HK) has increased by more than 12% [1] - Other companies such as Bilibili (09626.HK) and Xindong Company (02400.HK) are also seeing gains [1]

（全球TMT2025年5月6日讯）近期，OPPO、荣耀、小米、蚂蚁集团、中手游、苹果、英特尔、Meta、Oklo、恩智浦、Discord、华纳音乐、 Quantum Computing、DXC Technology等公司高管变动。 OPPO内部消息，原中国区总裁刘波因脱产参加高管学习计划卸任该职位。高级副总裁段要辉直接负责中国市场，对中国区整体业务负责。另 外，此次调整还涉及线下销售板块，由原Reno与A系列GTM部长汤杰负责中国区线下销售工作 ，向段要辉汇报。2024年1月，段要辉升任公司高 级副总裁后分管中国区，刘波向其汇报。 赵明卸任两家荣耀终端公司董事长 北京荣耀终端有限公司、西安荣耀终端有限公司发生工商变更，赵明卸任董事长职务。其中，北京公司由方飞接任董事长职务，西安公司由刘洋 接任。此前，荣耀内部宣布，赵明因身体原因，向公司提出辞去CEO等相关职务，董事会决定由李健任CEO职务。 雷军在小米之家改任董事 小米之家商业有限公司发生工商变更，雷军由执行董事改任董事，同时经营范围新增智能家庭消费设备销售、美发饰品销售。该公司成立于2017 年6月，法定代表人为孙波，注册资本1亿人民币，由小米通讯技术有限 ...

Financial Performance - The company's revenue for 2024 reached RMB 1,930.1 million, a decrease of 26% compared to RMB 2,605.9 million in 2023[7]. - Gross profit for 2024 was RMB 603.1 million, down from RMB 943.1 million in 2023, reflecting a gross margin decline[7]. - The company reported a net loss of RMB 2,110.8 million for 2024, compared to a loss of RMB 38.0 million in 2023[7]. - The adjusted net loss for 2024 was RMB 2,077.7 million, compared to a profit of RMB 5.4 million in 2023[7]. - Revenue from IP games reached RMB 1,054 million, while total revenue for the group was RMB 1,930 million for the year ending December 31, 2024, down from RMB 2,605 million in 2023[53]. - Average monthly active users decreased to 14.7 million in 2024 from 17.1 million in 2023, and average monthly paying users fell to 1.0 million from 1.2 million[53]. - The group's gross profit decreased by 36.1% from RMB 943.1 million for the year ended December 31, 2023, to RMB 603.1 million for the year ending December 31, 2024, with a gross margin decline from 36.2% to 31.2%[63]. - The company's IP licensing revenue decreased by 54.7% from RMB 257.0 million in 2023 to RMB 116.5 million in 2024[62]. Strategic Initiatives - The company plans to launch several new IP games between 2025 and 2026, including titles based on popular franchises[9]. - The company aims to focus on high-quality IP games and strategic partnerships with agile developers for future projects[9]. - The company is implementing a strategy of "business focus + cost control" to navigate the competitive gaming market[9]. - The company plans to deepen its market presence in Hong Kong, Macau, and Taiwan, with further expansion into Japan, South Korea, and Southeast Asia by 2025, launching multiple games including "斗破苍穹：巅峰对决" and "真．三国无双霸" in these regions[10]. - The company is exploring the potential of AI in gaming, aiming to integrate AI into casual game development for innovative gameplay experiences[12]. - The company plans to launch multiple new products in 2025, including "Spring and Autumn Mysteries" and "Sword of Immortal World," with specific release dates in January and February respectively[34]. Cost Management - The company has implemented significant cost control measures, resulting in a 34.0% year-on-year decrease in R&D expenses for 2024, improving operational efficiency[14]. - Research and development costs were reduced from RMB 370.3 million in 2023 to RMB 244.3 million in 2024, a decrease of 34.0%[56]. - The total sales cost decreased by 20.2% from RMB 1,662.8 million in 2023 to RMB 1,327.0 million in 2024, primarily due to reduced revenue from game publishing and development[61]. Market Expansion - The company aims to become a leading publisher in the casual gaming market, having successfully launched several games with cumulative revenues exceeding hundreds of millions of RMB, including "凡人飞仙传" and "全民枪神：边境王者"[10]. - The mobile game "斗罗大陆：史莱克学院" launched in January 2024, achieving over 10 million RMB in revenue in its first month and receiving multiple accolades[17]. - The mobile game "Dou Luo Da Lu: Reverse Time and Space," launched in September 2024, reached the top of the Apple free games chart but failed to meet user acquisition and revenue expectations; however, it maintained stable user retention and payment rates, with a Taptap rating increase from 6.0 to 6.7[19]. - The group plans to launch several new games in 2025, including "Daily Life of Chat Groups" and "Naruto: Konoha Master," after extending development timelines to ensure product quality[20]. IP Development - The company will continue to operate the "仙剑奇侠传" IP, with new projects including an animated series and multiple game adaptations expected to enhance fan engagement and revenue[13]. - The group's IP licensing revenue for "Xian Jian Qi Xia Zhuan" was approximately 116.5 million RMB, and the acquisition of overseas rights is expected to enhance the unified planning of the IP[25]. - The company launched a series of blind box products based on the "Xianjian" IP, achieving crowdfunding exceeding 10 million RMB for classic weapon models in collaboration with Alibaba's innovative entertainment platform[27]. - The company celebrated the 29th anniversary of "Xianjian" with offline events in Hangzhou, Changzhou, and Chongqing, including concerts and parades, while the live-action project began operations in Chongqing in 2023 and expanded to Hangzhou and Changzhou in July 2024[28]. User Engagement - The company reported a significant increase in user engagement, with a 25% year-over-year growth in active users[1]. - As of December 31, 2024, the active user count for "全民槍神：邊境王者" reached 91 million, with registered users surpassing 600 million[40]. - The overlap of paying users between mini-games and traditional mobile games is only 35%, indicating a significant opportunity for new user acquisition in the mini-game sector, projected to be a growth point for 2025[40]. Corporate Governance and Compliance - The company has been recognized as an "ESG Comprehensive Governance Benchmark Enterprise" for its commitment to environmental sustainability and social responsibility, integrating eco-friendly practices into its business decisions[30]. - The company has complied with all applicable laws and regulations related to intellectual property development and management as of the board report date[176]. - The independent non-executive directors confirmed that the transactions under the contractual arrangements for the year ending December 31, 2024, were conducted according to the relevant provisions of the agreements[172]. Shareholder Information - The total issued shares as of December 31, 2024, was 2,995,413,777 shares[150]. - Major shareholders include Mr. Xiao with 785,358,067 shares (26.21%) and Trident Trust Company holding 763,908,067 shares (25.50%) as of December 31, 2024[146]. - The company did not recommend a final dividend for the year ended December 31, 2024, consistent with no dividends declared for the previous year[110].

Summary of Zhongshou's Conference Call Company Overview - Zhongshou's overseas revenue reached RMB 272 million in 2024, accounting for 14.1% of total revenue, with significant contributions from the game "Douluo Dalu: Shrek Academy" in the Hong Kong, Macau, and Taiwan markets [1][3] - The company plans to expand its overseas business by launching "Douluo Dalu: Reverse Time" in international markets [1][3] Core Business Segments - Zhongshou's game publishing revenue for 2024 was RMB 1.665 billion, with three main business segments: game publishing, game development, and IP licensing [2] - Key games launched include "Douluo Dalu: Shrek Academy," "Doupo Cangqiong: Peak Showdown," and "Douluo Dalu: Reverse Time," all performing exceptionally well [2][15] - The company aims to launch 18 new games in 2025, focusing on high-quality IP games and innovative mini-games [2][10] Long-term Operating IP Games - Zhongshou has several long-term operating IP games, including "Xianjian Qixia Chuan," "One Piece: Bloodline," and "True Three Kingdoms: Domination," which have shown strong revenue performance [4] - "New Legend of the Condor Heroes: Iron Blood and Heart" generated RMB 260 million in its first month, while "One Piece: Bloodline" has maintained active engagement since its launch [4] Research and Development - The company invested RMB 244 million in R&D in 2024, focusing on projects like "Code: Dark Night Legend" and the open-world game "Xianjian World" [5] - "Xianjian World" was launched in early 2025, while "Code: Dark Night Legend" is expected to enter testing later in 2025 [5][13] IP Licensing Achievements - In 2024, IP licensing revenue was RMB 116 million, with Zhongshou holding complete global rights to "Xianjian Qixia Chuan" [7] - The company collaborates with partners like iQIYI and Tencent to produce series based on the IP, enhancing its market presence [8] Mini-Game Platform - The mini-game platform has lower channel costs and higher profit margins, with "Chunqiu Xuanqi" generating over RMB 100 million in its second month [17] - The company aims to deepen its development in the mini-game sector, targeting a revenue increase [17] Overseas Market Strategy - Zhongshou began its overseas business in 2021, with revenue contribution rising from less than 1% to over 10% in the first year [19] - The company plans to accelerate its overseas expansion, targeting a revenue contribution of 20% to 30% from international markets in the next three years [19][20] Future Outlook - The company is considering stock buybacks and dividends based on market conditions, with ongoing support from major shareholders [21] - The competitive landscape in the gaming market remains intense, but Zhongshou's strong IP portfolio positions it favorably [16]

Summary of Conference Call Records Company Overview - The conference call discusses the performance and future plans of Zhongyou Mobile (中手游) for the year 2024 and beyond, focusing on its gaming business and IP operations. Key Points 1. Financial Performance - As of December 31, 2024, Zhongyou Mobile's gaming publishing revenue reached RMB 1.665 billion [1] - The total revenue for the group was approximately RMB 1.931 billion, with an adjusted loss of RMB 2.048 billion [26] - Overseas revenue amounted to RMB 272 million, contributing to 14.1% of total revenue [4][26] 2. Game Releases and Performance - Three major IP games were launched in 2024: - **Douluo Dalu: Shrek Academy**: Recognized as the best national comic IP game at the Huawei Developer Conference [2] - **Doupo Cangqiong: Peak Showdown**: Achieved over 6 million pre-registrations and ranked second in the Apple Store free list upon launch [2] - **Douluo Dalu: Time Reversal**: Launched in September 2024, it reached first place in the Apple free list but did not meet user acquisition expectations [3] - The overall gaming industry faced significant challenges, particularly in user acquisition and revenue generation [3][27] 3. R&D and New Projects - The group invested RMB 2.44 billion in R&D, with revenues from R&D at RMB 149 million [5] - A new open-world game, **Xianjian World**, faced challenges post-launch, failing to meet expectations due to high player quality demands [6][7] - The company is focusing on optimizing R&D costs and maintaining a skilled team for future projects [7][15] 4. IP Operations - The group’s IP licensing revenue was RMB 116 million, with significant efforts to unify and expand the **Xianjian** IP universe [8][28] - Collaborations with major platforms like iQIYI and Tencent for adaptations of the **Xianjian** series have been successful, generating significant interest and revenue [9][24] 5. Strategic Adjustments - The company plans to refine its focus on high-potential IP games and expand into overseas markets, particularly in East Asia and Southeast Asia [12][13] - Emphasis on developing mini-games, with a goal to become a leading publisher in this segment [13][14] - Cost control measures have been implemented, resulting in a significant reduction in operational costs [15][16] 6. Market Challenges - The company faced delays in launching several anticipated games, impacting overall revenue [27] - The competitive landscape in the gaming industry has intensified, necessitating strategic adjustments and a focus on proven IPs [12][32] 7. Social Responsibility - Zhongyou Mobile has been recognized for its commitment to social responsibility, particularly in supporting youth education through initiatives like the "Zhongyou Dream Library" project [11] 8. Future Outlook - The company is optimistic about its product pipeline for 2025, with several games set to launch, including **Naruto: Master of Skills** and **New Three Kingdoms: Tide of War** [17][19] - Continued focus on enhancing user engagement and expanding the IP ecosystem is expected to drive future growth [22][25] Additional Insights - The company is actively exploring cultural output paths by integrating traditional Chinese culture with its IPs, aiming to broaden their influence [25] - The strategic partnership with esports organizations is expected to enhance game distribution and marketing efforts [10] This summary encapsulates the key aspects of Zhongyou Mobile's conference call, highlighting its financial performance, game releases, strategic adjustments, and future outlook in the gaming industry.

Leadership Changes - Zhongshouyou Technology Group Limited appointed Wang Chunye as co-CEO effective April 9, 2025, who previously served as General Manager at LeMando Interactive Entertainment [2] - Wang has extensive experience in the gaming industry, having held positions at NetDragon and Shanda Networks [2] Financial Performance - For the fiscal year ending December 31, 2024, Zhongshouyou reported revenue of 1.93 billion RMB, a decrease of 25.7% from 2.6 billion RMB in the previous year [3][4] - The company incurred a net loss of 2.11 billion RMB in 2024, compared to a loss of 38.04 million RMB in 2023 [6] - Adjusted net loss for 2024 was 2.08 billion RMB, while the previous year showed an adjusted net profit of 538 thousand RMB [6] Cost Structure - Gross profit for 2024 was 603 million RMB, down 36% from 943 million RMB in 2023 [3][4] - Sales and distribution expenses increased by 61.4% to 494 million RMB, while R&D expenses decreased by 34% to 244 million RMB [4][5] International Revenue - In 2024, overseas revenue accounted for 2.72 billion RMB, representing 14.1% of total revenue [4]