Group 1: Social Business Performance - The social business revenue of Zhi Zi Cheng Technology (09911.HK) grew by 39.1% year-on-year to approximately 44.3 million in Q1 2025, driven by the application of artificial intelligence and optimization of social recommendation algorithms [1] - Despite facing temporary headwinds in March and April due to the Ramadan holiday, the business rebounded quickly in May, with the main social product Sugo achieving a monthly revenue of about 24 million and approximately 4 million monthly active users [1] - The strong growth trend continued into June, with minimal impact from geopolitical tensions in the Middle East [1] Group 2: Innovative Business Growth - Zhi Zi Cheng Technology's innovative business also showed satisfactory progress in Q1 2025, achieving a year-on-year growth of 66.7% to 88.2%, driven by boutique games and social e-commerce platforms [1] - The success of Alice's Dream is seen as a positive signal for this business segment, with expectations that new boutique games will achieve breakeven faster and provide higher investment returns [1] Group 3: Global Headquarters and Growth Potential - Zhi Zi Cheng Technology has established its global headquarters and AI research center in Hong Kong, leveraging the international business environment, mature capital markets, and top talent resources to enhance AI applications in operations [2] - The company has shown robust growth in revenue and attributable profit, with products like Sugo, TopTop, and Blued expected to continue growing, providing substantial returns to shareholders [2] - The company’s strong cash reserves enable it to acquire potential businesses like Lan Cheng Brothers, and macroeconomic factors such as the recovery of valuations for Chinese companies and peak risk-free interest rates are expected to positively impact the company's valuation [2]
赤子城科技(9911.HK)：有利的环境与强劲增长潜力带来的重估