Core Viewpoint - The company reported Q4 2024 and Q1 2025 financial results, with Q4 meeting expectations and Q1 exceeding them, indicating a positive trend in revenue and profitability [1][4]. Financial Performance - In Q4 2024, the company achieved revenue of 1.5 billion yuan, a year-over-year decrease of 6% but a quarter-over-quarter increase of 14%. The net profit attributable to shareholders was -0.9 billion yuan, with a non-recurring net profit of -0.864 billion yuan, aligning with prior forecasts [1]. - In Q1 2025, the company reported revenue of 2.02 billion yuan, a year-over-year increase of 52% and a quarter-over-quarter increase of 35%. The net profit attributable to shareholders was 0.3 billion yuan, with a non-recurring net profit of 0.16 billion yuan, marking a turnaround to profitability [1]. Game Business Growth - The game business generated revenue of 1.42 billion yuan in Q1 2025, reflecting a year-over-year increase of 10%, driven by the launch of the flagship IP game "Zhu Xian World" and strong performance from esports titles like "CS2" and "DOTA2" [2]. - The flagship IP game "Zhu Xian World" is expected to provide ongoing revenue growth due to its long lifecycle and core user base [2]. Cost Reduction and Efficiency - The company undertook a restructuring of its existing R&D teams in 2024, leading to some impairment losses in Q4. Despite a natural decline in existing products, the impact was minimal, and the launch of "Zhu Xian World" improved overall profitability [3]. - The company has a strong pipeline with upcoming products like "Yihuan," which is anticipated to enhance the company's fundamentals [3]. Film and Television Business - The film and television segment achieved revenue of 0.6 billion yuan in Q1 2025, a significant year-over-year increase of 1616%, driven by multiple shows airing during the reporting period [3]. - The company plans to maintain stable operations in the film and television sector by implementing a "quality over quantity" strategy [3]. Profit Forecast and Investment Recommendations - Based on Q4 performance and Q1 results, the company slightly adjusted its profit forecasts, expecting revenues of 6.8 billion, 10.3 billion, and 10.7 billion yuan for 2025-2027, with year-over-year growth rates of 22%, 52%, and 3% respectively [4]. - The net profit forecasts for the same period are 0.65 billion, 1.62 billion, and 1.93 billion yuan, with significant growth anticipated in 2026 due to the impact of the high-quality product "Yihuan" [4].