ARCHOSAUR GAMES(HK:09990) Mei Ri Jing Ji Xin Wen·2025-08-25 13:03Core Viewpoint - Zulong Entertainment reported significant revenue growth and a substantial reduction in losses for the first half of 2025, indicating an improving operational situation [1][3]. Financial Performance - The company achieved a revenue of 634.3 million yuan, a year-on-year increase of 44.4% [1]. - Losses narrowed to 11.7 million yuan, a 91.3% reduction compared to the previous year's loss of 120 million yuan [1][3]. - Revenue from the domestic market reached 512 million yuan, up 68.3% from 304 million yuan in the same period last year [1]. Game Performance - The mobile game "Shining Bright" has been a key driver of revenue, consistently ranking in the top ten of the iOS bestseller list since its launch [2]. - The game has generated over 2 billion yuan in cumulative revenue globally, with significant growth in daily active users (DAU) during the summer of 2025 [2]. - The strategy card game "Dragon Tribe: Kassel Gate," based on a popular IP, also performed well, topping the iOS free chart on its launch day [2]. R&D and Future Projects - R&D expenses for the first half of 2025 were 265 million yuan, slightly up from 264 million yuan in the previous year [3]. - The company is undergoing a restructuring of its project pipeline, delaying several game launches, including "Code: Odin" and "Code: One" [3]. - The gross margin remained high at 71.4%, indicating effective cost control in game operations [3]. Global Strategy - Zulong Entertainment plans to expand its successful games into Southeast Asia and South Korea, having launched 24 mobile games in over 170 markets [4]. - Revenue from regions outside of mainland China decreased to 123 million yuan, accounting for 19.3% of total revenue, down from 30.8% the previous year [4]. Technological Innovation - The company is focusing on next-generation 3A rendering and immersive experiences, exploring AI applications in game development [5]. - An intelligent NPC based on a popular character was introduced in "Dragon Tribe: Kassel Gate," enhancing user interaction [5].