Ge Long Hui·2025-11-28 05:41Core Insights - The company reported Q3 2025 revenue of 7.685 billion yuan, a year-over-year increase of 5.2% and a quarter-over-quarter increase of 4.7% [1] - Adjusted net profit attributable to shareholders for Q3 2025 was 786 million yuan, reflecting a significant year-over-year increase of 233% [1] - The gross margin for Q3 2025 was 36.7%, an increase of 1.8 percentage points year-over-year [1] Business Segment Performance - Mobile game revenue was 1.51 billion yuan, down 17.1% year-over-year, primarily due to a high base effect from the previous year [1] - Value-added services revenue reached 3.02 billion yuan, up 7.1% year-over-year, driven by growth in paid membership income [1] - Advertising revenue exceeded expectations at 2.57 billion yuan compared to the consensus of 2.51 billion yuan, marking a year-over-year increase of 22.7% [1] - Revenue from IP derivatives and other sources was 580 million yuan, up 2.7% year-over-year [1] Game Development and Launches - The long-term operation of games such as "Three Kingdoms: Hundred Generals Card" and the stable operation of "Three Kingdoms: Strategize the World" contributed incremental revenue to the company's gaming business [1] - The new game "Escape from Duckkov" launched in October sold over 3 million copies in its first month, with peak online users exceeding 300,000, and is expected to be adapted for mobile and console platforms [1] - Upcoming game "Three Kingdoms: Hundred Generals Card" is expected to launch in Q1 2026, targeting young users with its fast-paced and low-cost gameplay [1] User Metrics and Community Growth - The company achieved record highs in core user metrics, with daily active users (DAU) reaching 117 million, up 9% year-over-year, and monthly active users (MAU) at 376 million, up 8% year-over-year [2] - Average daily usage time increased by 6 minutes year-over-year to 112 minutes, with the number of paying users reaching 35 million, a year-over-year increase of 17% [2] - The growth in high-quality content and community experience continues to drive stable user growth, enhancing the commercial value of advertising [2] Financial Projections - The company is projected to achieve revenues of 30.18 billion yuan, 33.72 billion yuan, and 36.44 billion yuan for the years 2025, 2026, and 2027, respectively [2] - Adjusted net profit attributable to shareholders is expected to be 2.23 billion yuan, 3.60 billion yuan, and 4.42 billion yuan for the same years [2]