ARCHOSAUR GAMES(HK:09990) Ge Long Hui·2025-08-25 12:22Core Viewpoint - The company expects significant financial improvement in 2025 compared to the previous year, driven by the successful development and launch of new games, including "Project Code: Xiaoyao," "Project K," and "Project G" [1] Financial Performance - For the first half of 2025, the company's revenue reached RMB 634.3 million, marking a 44.4% increase year-on-year [2] - The cost of revenue increased by 54.2% to RMB 181.5 million, while gross profit rose by 40.8% to RMB 452.8 million [2] - Research and development expenses were approximately RMB 265.5 million, showing a slight increase of 0.5% compared to the previous year [2] - Sales and marketing expenses increased by 28.7% to RMB 222.3 million, while administrative expenses decreased by 4.7% to RMB 44.8 million [2] - Other income rose significantly by 135.3% to RMB 4.0 million, contributing to the overall positive financial performance [2] Strategic Direction - The company's sustained growth is attributed to its commitment to a premium strategy, focusing on technological innovation and a diverse product matrix [2][3] - As of the announcement date, the company has released 24 premium mobile games, generating over RMB 22 billion in total revenue and accumulating over 200 million registered users globally [3] - The flagship product "In the Name of Shining" has generated over RMB 2 billion, serving as a stable growth engine for the company [3] Innovation and Technology - The company emphasizes the importance of continuous innovation and R&D investment, with R&D personnel accounting for nearly 80% of its workforce [3] - The integration of advanced technologies, such as AI and Unreal Engine, into game development has allowed the company to create a diverse range of high-quality products [4] - The first female-oriented AAA mobile game "In the Name of Shining" utilizes AI for enhanced player interaction, receiving positive feedback from users [4][6] Market Trends - The gaming user base in China reached approximately 679 million in the first half of 2025, setting a historical record [8] - Policy support for the gaming industry is increasing, with initiatives encouraging technological innovation and collaboration among leading and smaller enterprises [10] - The company's growth potential is expected to be further enhanced by the dual drivers of "engine technology + AI" in the current market environment [10]