Core Viewpoint - The company reported a strong performance in 1H25, with revenue growth of 40% year-on-year, driven by robust social and innovative business segments [1] Revenue Performance - 1H25 revenue increased by 40% to 3.18 billion yuan, aligning with expectations; adjusted EBITDA rose by 44% to 650 million yuan, and net profit attributable to shareholders surged by 118% to 490 million yuan, slightly below expectations due to higher marketing expenses offsetting margin improvements [1] - Social business revenue grew by 37% to 2.83 billion yuan, driven by user growth and increased ARPU; innovative business saw a 71% increase to 347 million yuan, with expectations of profitability from premium games [1] Product Development - New flagship products are showing continuous revenue growth, contributing over 20% to social revenue, with several expected to reach monthly revenues of 10 million USD [2] - The content creation community Aippy is in testing, focusing on solidifying content and user base before exploring various monetization strategies [2] Market Expansion - The Middle East and North Africa market accounted for over 60% of high ARPU revenue, with core products seeing over 60% revenue growth; Southeast Asia remains stable, and the company is exploring opportunities in Latin America, Europe, and Japan [2] - The company anticipates continued rapid user growth in 2025, supporting a 34% increase in social business revenue [2] Margin and Cost Structure - 1H25 gross margin reached 56%, up 6 percentage points, due to a decrease in revenue share from social business and an increase in high-margin innovative business [2] - The company expects high marketing costs for new products to persist but aims to enhance operational efficiency through centralized integration and AI empowerment [2] Financial Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been raised by 2% to 6.9 billion and 8.5 billion yuan, respectively, while net profit forecasts remain unchanged [2] - The company maintains an "outperform" rating, adjusting the target price by 20% to 13.5 HKD, indicating a 10% upside potential from the current stock price [2]