YOOZOO(SZ:002174) Tai Mei Ti A P P·2025-11-07 02:25Core Viewpoint - The article discusses the tumultuous history and recent financial performance of Youzu Interactive, highlighting its dramatic profit fluctuations and a significant investment in AI technology as a potential turning point for the company [2][4][25]. Financial Performance - Youzu Interactive reported a staggering 1374.6% year-on-year increase in net profit for the third quarter of 2025, following a 989% increase in the first half of the year [6][8]. - However, the company's non-recurring net profit showed only a slight increase of 0.85%, indicating that the profit surge may not be driven by core gaming operations but rather by investment income [7][8]. - The company's operating cash flow was negative, with a net cash outflow of 90.44 million, representing a 163% year-on-year decline [8]. Historical Context - The company's troubles began in 2020 when founder Lin Qi died under suspicious circumstances, leading to a protracted legal battle and significant operational disruptions [10][11]. - Following Lin's death, a complex inheritance dispute arose, resulting in the transfer of 11.72% of the company's shares to a new entity, Shanghai Jiayou, effectively leaving Youzu without a controlling shareholder [13][14][18]. Strategic Moves - Youzu has made significant workforce reductions, cutting 34.9% of its total staff in 2023, and has appointed new executives to revitalize the company [20][21]. - The company is focusing on its core gaming business, particularly on long-term product development, but faces challenges in launching new successful titles [21][22]. - The anticipated game adaptation of the popular IP "The Three-Body Problem" has faced delays and financial strain, prompting the company to halt two game development projects to bolster liquidity [23][24]. AI Investment - Youzu announced a plan to invest up to 1 billion in the "Wuxi Cloud Star Intelligent Computing" partnership, positioning this move as a strategic pivot towards AI technology [2][25]. - The company aims to leverage AI as a new growth narrative amidst declining performance in its traditional gaming business [24][25].