Ge Long Hui·2025-05-23 18:26Core Viewpoint - The company reported strong Q1 2025 performance with significant revenue and profit growth, driven by improvements in user ecosystem and operational efficiency [1][2] Financial Performance - Q1 2025 revenue reached 7.003 billion yuan, a year-over-year increase of 24% [1] - Adjusted net profit attributable to shareholders for Q1 2025 was 362 million yuan, up 179% year-over-year [1] - R&D expenses decreased by 13% to 840 million yuan, indicating improved operational conditions [1] Business Segments - Mobile gaming revenue exceeded expectations at 1.73 billion yuan, a 76% year-over-year increase [1] - Value-added services revenue was 2.81 billion yuan, surpassing consensus estimates with an 11% year-over-year growth [1] - Advertising revenue reached 2 billion yuan, in line with expectations, reflecting a 20% year-over-year increase [1] - IP derivatives and other revenues were 470 million yuan, slightly above expectations but down 4% year-over-year [1] User Growth and Engagement - Daily Active Users (DAU) reached 107 million, a 4.2% year-over-year increase [2] - Monthly Active Users (MAU) stood at 370 million, with daily usage time averaging 108 minutes, up 2.9% year-over-year [2] - The company has 264 million official members, with a 2.3% quarter-over-quarter increase and an 80% annual retention rate [2] Future Outlook - The upcoming anniversary of the game "Three Kingdoms: Strategizing the World" is expected to drive significant revenue growth in Q2 2025 [1] - The company is expanding its game portfolio beyond SLG games, with multiple titles awaiting approval for release [1] - Revenue projections for 2025, 2026, and 2027 are estimated at 30.04 billion, 33.07 billion, and 36.26 billion yuan respectively, with adjusted net profits of 1.82 billion, 2.81 billion, and 3.92 billion yuan [2]