Investment Rating - The report assigns an "Increase" rating for the gaming industry, indicating a positive outlook compared to the CSI 300 index, with expected growth exceeding 15% [13]. Core Insights - In September, a total of 145 domestic games received approval, contributing to a total of 1,195 domestic game licenses issued this year, significantly higher than the 959 licenses issued in the same period last year [6][8]. - The gaming market in August showed stability, with a total revenue of 29.263 billion yuan, reflecting a month-on-month growth of 0.61% but a year-on-year decline of 13.01% [6][8]. - The report highlights the strong performance of leading products, such as Tencent's "Delta Action," which reached 30 million daily active users in September, and the anticipated revenue of over 300 million yuan for the new game "Valorant: Energy Action" in its first month [6][8]. Summary by Sections Game License Approvals - In September, 145 domestic games and 11 imported games received approval, with notable titles from Tencent, NetEase, and others included in the list [6][8]. - The approval rate for domestic game licenses has increased, with an average monthly issuance of 132.8 licenses in 2023, up from 88.8 in 2021 and 108.8 in 2022 [6][8]. Market Performance - The gaming market's revenue for August was 29.263 billion yuan, with mobile games generating 21.521 billion yuan and client games 6.563 billion yuan [6][8]. - The report notes that client games are experiencing growth due to cross-platform products, which enhances their profitability compared to mobile games [6][8]. Investment Recommendations - The report recommends companies with strong content reserves and solid fundamentals, including Kain Network, 37 Interactive Entertainment, Giant Network, Perfect World, and others [6][8]. - Specific stock recommendations include Kain Network (28.94 yuan), 37 Interactive Entertainment (22.49 yuan), and Giant Network (44.87 yuan), all rated for "Increase" [7][8].

Core Insights - The company reported a revenue decline of 18.9% in the first half of 2025, totaling 686 million yuan, but achieved a net profit of 32.95 million yuan, marking a turnaround from losses [1] - Operating cash flow showed a significant increase of 71.2%, reaching 57.86 million yuan, indicating improved cash management [1] - The company's strategic transformation over the past five years is reflected in its financial performance, with a focus on enhancing player experience over maximizing advertising revenue [1][2] Financial Performance - Revenue decreased primarily due to the lifecycle stage of the game "Honor All-Stars" and a deliberate reduction in advertising slots [1] - Cost control measures and improved profit margins from new products contributed to the profit increase [1] - Sales and marketing expenses rose by 39.4% to 108.4 million yuan, driven by increased promotion for "Kara Bichu" and new game launches [1][2] Product Development - R&D expenses fell by 68.2% to 48.7 million yuan, attributed to the completion of "Kara Bichu" development and enhanced efficiency from AI technology [2] - "Kara Bichu" saw a 9.9% increase in monthly active users and a 74.8% increase in revenue, with significant improvements in payment rates [2] - The game’s unique positioning in the market, combining "anime" and "shooting" elements, has created a competitive edge [2] Market Strategy - The company is focusing on expanding into the Middle East, establishing a regional headquarters in Riyadh and forming partnerships with local gaming platforms [3] - "Kara Bichu" was included in the Saudi Esports World Cup, enhancing its global visibility [3] - The international launch of the PC version has attracted a loyal user base in Japan and the West, maintaining a strong presence on Steam [3] Challenges and Future Outlook - Despite current successes, the company faces challenges in the mobile gaming market, where competition is fierce [3] - There are concerns regarding user retention and content updates, as evidenced by a significant drop in online player numbers [3] - The management acknowledges the risks associated with strategic adjustments and is optimistic about the upcoming mobile version launch, which is expected to drive new growth [3][4] Industry Trends - The performance of "Kara Bichu" will be crucial in determining the company's ability to navigate its transformation phase [4] - The gaming industry is shifting towards a focus on quality, efficiency, and globalization, moving away from previous growth models [4] - The transition from PC to mobile gaming typically expands the user base, attracting non-traditional players [4]

Group 1 - Tencent's "Delta Action" anniversary celebration will take place on September 21, featuring offline experiences, online live streaming, and the "2025 Fire World Cup Finals" [1] - The anniversary event is expected to drive significant revenue growth, similar to the "100 billion subsidy" during the May Day holiday, through limited skin sales and event-related collaborations [1] - The capital market has formed clear performance expectations, positioning Tencent's FPS segment as a potential catalyst for investor interest [1] Group 2 - Xinghui Games has launched the pre-selection state feature for its mobile game "Three Kingdoms: Strategy of the Nine Provinces," enhancing user retention and optimizing the alliance experience [2] - This feature allows alliance leaders to secure servers and birth states once their alliance reaches 80 members, facilitating a smoother entry for players during the public test [2] - Xinghui Games' strategic focus on deepening classic products is evident in the pre-launch preparations for "Three Kingdoms: Strategy of the Nine Provinces," aimed at strengthening user loyalty amid intense market competition [2] Group 3 - Chuangmeng Tiandi's mobile game "Kara Bichu" has surpassed 8 million pre-registrations ahead of its official launch in October, indicating strong market anticipation for domestic innovative shooting games [3] - The game has already demonstrated international potential by being the first domestic shooting game to participate in the Saudi eSports World Cup, enhancing its global value [3] - The company's dual strategy of "self-developed + overseas distribution" is expected to clarify its profit structure, with a focus on both new product contributions and stable cash flow from classic products [3]

Group 1 - Tencent's "Delta Action" anniversary celebration will take place on September 21, featuring immersive experiences, live streaming, and the "2025 Fire World Cup Finals" [1] - The anniversary event is expected to drive significant revenue growth, similar to the "100 billion subsidy" during the May Day holiday, through limited skin sales and event-related merchandise [1] - The capital market has formed clear performance expectations, positioning Tencent's FPS segment as a potential catalyst for investor interest [1] Group 2 - Xinghui Games has launched the pre-selection state feature for its mobile game "Three Kingdoms: Strategy in the Nine Provinces," enhancing user retention and market potential [2] - The pre-selection feature allows alliance leaders to secure servers and birth states, improving the overall gaming experience [2] - This strategic move reflects Xinghui Games' commitment to deepening its classic product development capabilities amid intense market competition [2] Group 3 - Chuangmeng Tiandi's mobile game "Kara Bichu" has surpassed 8 million pre-registrations ahead of its October launch, indicating strong market anticipation [3] - The game is positioned as a key product in the company's "self-developed + overseas distribution" strategy, showcasing its potential in the global market [3] - The successful international launch of "Kara Bichu" highlights the company's ability to accumulate global operational experience, with plans to integrate compliant stablecoin payment systems [3]

Group 1 - Bilibili's mobile game "Three Kingdoms: Strategizing the World" introduces a new GVG gameplay mode called "Kingdoms' Contest" and plans to launch a GVE mode "Subduing the Rebels" [1] - The game will feature a crossover with the national comic "Fire Phoenix Liao Yuan," allowing players to obtain a limited appearance of "Xiao Meng × Diao Chan" for free [1] - The content upgrade occurs just three months after the game's public launch, indicating Bilibili's commitment to heavy operation [1] Group 2 - Chuangmeng Tiandi announces that its self-developed mobile game "Kara Bichu" will officially launch on all platforms in October [2] - The game is a key part of Chuangmeng Tiandi's dual strategy of "overseas premium distribution + self-developed breakthroughs," aiming to differentiate itself in the competitive two-dimensional market [2] - The success of "Kara Bichu" could validate the company's strategic focus, especially as its current P/E ratio is lower than leading competitors [2] Group 3 - Indian unicorn Hike officially shuts down following a ban on real-money gaming, becoming a significant event after the implementation of the country's online gaming promotion and regulation bill in 2025 [3] - The new law prohibits all online games involving real money transactions, with violators facing severe penalties, which directly impacts Hike's revenue model [3] - Hike's founder, Kavin Bharti Mittal, acknowledged the need for a complete capital restructuring for global expansion, indicating that the current situation is not the best use of capital and time [3]

Company Information [Company Overview](index=3&type=section&id=Company%20Overview) iDreamSky Technology Holdings Limited (Stock Code: 1119), registered in the Cayman Islands, primarily engages in game development and operations, maintaining stable board and committee structures, legal counsel, auditor, registered office, headquarters, and principal place of business in Hong Kong during the reporting period - Company Name: iDreamSky Technology Holdings Limited (創夢天地科技控股有限公司)[1](index=1&type=chunk) - Stock Code: **1119**[1](index=1&type=chunk) - Registered Place: Cayman Islands[1](index=1&type=chunk) - Main Business: Game development and operations[109](index=109&type=chunk) - Chairman and CEO: Mr. Chen Xiangyu[5](index=5&type=chunk) - Auditor: PricewaterhouseCoopers[5](index=5&type=chunk) - Headquarters: 16th Floor, Unit 3, Block A, Kexing Science Park, No. 15 Keyuan Road, Nanshan District, Shenzhen, Guangdong, China[7](index=7&type=chunk) - Listing Date: December 6, 2018[7](index=7&type=chunk) Financial Highlights [Financial Performance Overview](index=5&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the Company's revenue decreased by 18.9% year-on-year to 685,798 thousand RMB, but achieved a turnaround to a profit of 32,952 thousand RMB from a loss of 109,279 thousand RMB in the prior period, with adjusted profit for the period significantly increasing to 95,139 thousand RMB 2025 First Half Key Financial Data (Unaudited) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 685,798 | 845,223 | -18.9% | | Gross Profit | 289,488 | 291,786 | -0.8% | | Profit/(Loss) Before Income Tax | 34,741 | (107,393) | Turned Loss into Profit | | Profit/(Loss) for the Period | 32,952 | (109,279) | Turned Loss into Profit | | Adjusted Profit for the Period | 95,139 | 3,297 | +2785.0% | Chairman's Report [Overall Performance and Strategy](index=6&type=section&id=Overall%20Performance%20and%20Strategy) In the first half of 2025, the Company focused on its core game business, driven by a "self-developed + overseas premium publishing" strategy, achieving a net profit turnaround and continuously enhancing operational quality and user value - Strategic Focus: Continuously focusing on the core game business, centered around the "self-developed + overseas premium publishing" dual-drive strategy[10](index=10&type=chunk) - Performance Highlights: Achieved a net profit turnaround, with dual improvements in operational quality and user value[10](index=10&type=chunk) [Overseas Premium Game Publishing Business](index=6&type=section&id=Overseas%20Premium%20Game%20Publishing%20Business) Overseas premium game publishing forms the Company's fundamental game business, with classic titles like "Subway Surfers," "Gardenscapes," and "Homescapes" maintaining steady growth through refined operations and IP collaborations, while new games like "Rush Royale," "Hole.io," and "Phantom Spirit War" offer rich reserves for future growth - Business Model: Over 10 years of experience in overseas premium game publishing, forming the Company's fundamental game business[11](index=11&type=chunk) - "Subway Surfers": Remains strong in its 13th year, introducing randomly generated maps and "Super Endless" mode, with a **paying ratio increase of nearly 30%** compared to 2024[11](index=11&type=chunk) - "Gardenscapes" and "Homescapes": Achieved steady growth, launching 6 versions and collaborating with multiple IPs in the first half, with Average Revenue Per Daily Active User (ARPDAU) increasing by **over 9%** year-on-year[12](index=12&type=chunk) - "War Robots": Demonstrated strong vitality and community engagement in 2025, with the "Sky Sword" version, a collaboration with the "Father of Gundam," achieving a record-high Average Revenue Per Daily Active User (ARPDAU) on its launch day, and the Fanbook community user base increasing by **over 36.6%** compared to the end of 2024[12](index=12&type=chunk) - New Game Reserves: "Rush Royale" generated nearly **300 million USD** in overseas gross billing, with global downloads exceeding **80 million**; "Hole.io" overseas gross billing surpassed **70 million USD**; "Phantom Spirit War" supports UGC content[13](index=13&type=chunk) [Self-Developed Business](index=7&type=section&id=Self-Developed%20Business) The self-developed PC version of "Calabiyau" saw its MAU increase by 9.9%, gross billing grow by 74.8%, and paying ratio and Average Revenue Per Monthly Active User (ARPMAU) rise by 23.2% and 59.0% respectively, through content optimization and commercialization adjustments; the mobile version completed three rounds of testing and is expected to launch within the year, while "Delta Force," co-developed with Tencent, has globally launched on PC and mobile, with its Daily Active User (DAU) scale exceeding 20 million in July - "Calabiyau" PC version: MAU increased by **9.9%**, gross billing grew by **74.8%**, paying ratio improved by **23.2%**, and Average Revenue Per Monthly Active User (ARPMAU) rose by **59.0%**[14](index=14&type=chunk) - "Calabiyau" Carnival: Successfully hosted a national university competition, attracting nearly **5,000 players**, with peak online live viewership exceeding **1 million**[14](index=14&type=chunk) - "Calabiyau" Mobile version: Completed three key tests, expected to launch domestically in 2025, with self-propagated new users accounting for **46.5%** of total new users during testing[16](index=16&type=chunk) - "Delta Force": Co-developed with Tencent, globally launched on PC and mobile, with Daily Active User (DAU) scale exceeding **20 million** in July, ranking among the top five in domestic Daily Active User (DAU) scale and top three in game gross billing[16](index=16&type=chunk) [AI Capabilities Fully Integrated into R&D and Operations](index=8&type=section&id=AI%20Capabilities%20Fully%20Integrated%20into%20R%26D%20and%20Operations) The Company is fully advancing the application of AI technology in R&D processes, user services, and gaming experiences, with AI code assistants developed in collaboration with Tencent Cloud improving R&D efficiency by over 30%, a self-developed AI code review platform enhancing code quality, the "Fengsheng" global AI user voice listening platform boosting operational efficiency and "Calabiyau" Steam positive review rate by 24%, and an AI customer service system achieving a 75% self-resolution rate and a 40% reduction in manual intervention - R&D Process: AI code assistants, in collaboration with Tencent Cloud, cover all technical development roles, improving overall R&D efficiency by **over 30%**[18](index=18&type=chunk) - Code Quality: A self-developed AI code review platform has been launched, enhancing code quality and game product quality[18](index=18&type=chunk) - User Services: The self-developed "Fengsheng" global AI user voice listening platform improves strategy response and operational iteration efficiency, boosting "Calabiyau" Steam positive review rate by **24%** and KOL engagement efficiency by **over 30%**[18](index=18&type=chunk) - AI Customer Service: Covers multiple platforms and languages, co-building a knowledge base with Alibaba Tongyi, achieving a **75%** self-resolution rate for high-frequency issues, a **40%** reduction in manual intervention, and **93%** accuracy[18](index=18&type=chunk) [Practicing Corporate Responsibility, Exploring "Games + Public Welfare" New Model](index=8&type=section&id=Practicing%20Corporate%20Responsibility%2C%20Exploring%20%E3%80%8CGames%20%2B%20Public%20Welfare%E3%80%8D%20New%20Model) The Company fulfills its corporate responsibility through a "Games + Public Welfare" model, exemplified by "Subway Surfers" launching a "Shenzhen 45th Anniversary" special edition to promote urban culture and tourism, and "Calabiyau" incorporating traditional Chinese cultural elements like shadow play art and the Chinese zodiac; the Company was again recognized as a "National Key Cultural Export Enterprise" in 2025 and actively participates in the "Pomegranate Seed Program" and "Green and Beautiful Guangdong Ecological Construction" - Cultural Promotion: "Subway Surfers" launched a "Shenzhen 45th Anniversary" special edition, contributing to cultural tourism integration and urban image building[20](index=20&type=chunk) - Integration of Traditional Culture: "Calabiyau" incorporates traditional cultural elements such as shadow play art, the Chinese zodiac, and traditional Chinese attire[20](index=20&type=chunk) - Accolades: Re-awarded "National Key Cultural Export Enterprise" in 2025[20](index=20&type=chunk) - Philanthropic Engagement: Collaborated with China Audio-Video and Digital Publishing Association to promote the "Pomegranate Seed Program," supporting the growth of youth in border and ethnic regions; participated in the "Green and Beautiful Guangdong Ecological Construction"[20](index=20&type=chunk) [Conclusion](index=9&type=section&id=Conclusion) The Chairman emphasized the Company's continued commitment to users, strengthening foundations, and persistent innovation, aiming to reward users with quality content and shareholders with long-term value, collectively creating a better future - Core Philosophy: Rooting in users, strengthening foundations, and persistent innovation are the sole paths for enterprises to navigate cycles and achieve value leaps[22](index=22&type=chunk) - Future Commitment: To reward users with quality content and shareholders with long-term value[22](index=22&type=chunk) Management Discussion and Analysis [Overall Financial Performance](index=10&type=section&id=

Core Insights - The company achieved a revenue of 686 million yuan and a net profit of 32.95 million yuan, marking a turnaround from losses, with operating cash flow increasing by 71.2% year-on-year [1] - The integration of AI technology has significantly improved operational efficiency, with a 40% reduction in human intervention and a 93% accuracy rate in customer service [1] - The game "Kara Bichu" has seen a 9.9% increase in monthly active users and a substantial revenue growth of 74.8%, with both payment rate and average payment per active user rising by 23.2% and 59% respectively [1][12] Financial Performance - The mid-term financial report for 2025 shows a revenue of 686 million yuan and a net profit of 32.95 million yuan, indicating a successful turnaround [1] - Operating cash flow reached 57.86 million yuan, reflecting a year-on-year growth of 71.2% [1] AI Integration - The AI customer service system has been implemented across multiple platforms, achieving a 75% self-resolution rate for high-frequency issues and reducing human intervention by 40% [1] - R&D efficiency has improved by over 30%, enhancing code quality and game quality [1] Game Performance - "Kara Bichu" has experienced a 9.9% increase in monthly active users, with a revenue increase of 74.8% [1][12] - The game has also improved its Steam rating by 24% due to the implementation of the AI customer service system [1] Strategic Shift - The company has shifted its strategic focus from competitive gameplay to enhancing user experience and diversifying gameplay options [3][8] - The introduction of casual modes and features aimed at lowering the entry barrier for new players reflects this strategic pivot [5][8] Market Positioning - The company is positioning "Kara Bichu" to appeal to a broader audience, particularly younger players, by emphasizing its unique anime aesthetic and gameplay mechanics [2] - Collaborations with various organizations in Saudi Arabia have increased the game's global visibility [4] Future Outlook - The upcoming mobile version of "Kara Bichu" is anticipated to further enhance the company's market presence and user engagement [12] - The management's willingness to adapt and innovate suggests a proactive approach to capturing market opportunities [12]

Group 1 - The company, Chuangmeng Tiandi (01119), announced the granting of a total of 900,000 stock options to two employees (non-directors) under the new stock option plan for 2023 [1] - Each stock option granted allows the recipient to subscribe for one share of the company's stock, but the grant is subject to acceptance by the recipients [1]

Group 1 - The company, Dreamland (01119), announced the granting of a total of 900,000 stock options to two employees (non-directors) under the new stock option plan for 2023 [1] - The stock options will allow the grantees to subscribe for one share for each option granted, but the grant is subject to acceptance by the grantees [1] - The options are set to be granted on September 3, 2025 [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 iDreamSky Technology Holdings Limited ࡋỖཙൠ、ᢰ᧗㛑ᴹ䲀ޜਨ （於開曼群島註冊成立的有限公司） （股份代號：1119） 根據2023年新購股權計劃授出購股權 本公告乃本公司根據上市規則第17.06A、17.06B及17.06C條作出。 董事會宣佈，本公司根據2023年新購股權計劃於2025年9月3日向2名僱員（非董 事）授出合共900,000份購股權（獲授予購股權的承授人有權就每份購股權認購1 股股份），惟須待承授人接納方可作實。 授出購股權 所授出購股權的詳情如下： 授出購股權的數目（份）： 900,000 授出購股權的行使價： 1.152港元 表現目標*： 自授出日期起每12個月為一個評估期。承授人於每個 評估期的購股權歸屬百分比根據其年度綜合績效評 分進行調節。 – 1 – 授出日期： 2025年9月3日 承授人類別： 僱員（非董事） 獲授人數： 2人 股份 ...