Summary of Shenzhou Taiyue Conference Call Company Overview - **Company**: Shenzhou Taiyue - **Industry**: Gaming and Software Development Key Financials - **Revenue**: 1.36 billion CNY, a quarter-on-quarter increase of 2.85% [2] - **Net Profit**: 270 million CNY, a quarter-on-quarter increase of 13.45%, indicating steady improvement in overall profitability [2] - **First Half of 2025**: Revenue of 2.685 billion CNY, a year-on-year decrease of 12%; net profit of 509 million CNY, a year-on-year decrease of 19.26% [3] Gaming Business Insights - **Revenue Source**: 92% of revenue comes from the overseas gaming market, with North America contributing approximately half [2][12] - **Upcoming Games**: Two games, DL and LA, are nearing launch on the Apple Store, with three additional SL products expected to enter commercialization testing in Q1 and Q2 of 2026 [2][4][8] - **Existing Games**: The games "Sunrise City" and "War Fire and Order" are performing well, with stable revenue maintained through frequent updates and consistent investment [6] Software Business Developments - **Abox Smart Voice Robot**: Launched with a subscription model based on call duration, showing good market feedback and plans for international expansion [5][7] - **Productization and Internationalization**: The software segment is experiencing continuous growth, with a focus on productization and international outreach [5][11] Market Strategy and Trends - **New Product Development**: The company is accelerating the pace of new product launches, integrating various themes and gameplay styles to capture the expanding SLG market [10] - **Cultural Elements**: Games incorporate Chinese cultural elements, which have been well-received by overseas players [13][14] - **Competitive Landscape**: The SLG market is highly competitive, with established players dominating due to their understanding of overseas player preferences [14] Future Outlook - **Game Development Focus**: Emphasis on refining product quality and learning from successful market examples to enhance new product offerings [15][16] - **Profitability of Software Products**: The subscription model for Everbox is expected to yield high profit margins, with a focus on customer feedback and demand growth [17][18] - **Domestic Market Plans**: Domestic versions of games have been completed and are expected to launch soon, aligning closer with overseas release schedules [19]

Financial Performance - In the first half of 2025, the company achieved operating revenue of 8.486 billion yuan and a net profit attributable to shareholders of 1.4 billion yuan, representing a year-on-year growth of 10.72% [1] - The company plans to distribute a cash dividend of 2.10 yuan per 10 shares, amounting to approximately 462 million yuan, with total dividends for the half-year expected to reach 924 million yuan [1] Product Development - The company has launched several successful new products, with the highest monthly revenue from mobile games reaching approximately 2.2 billion yuan [2] - Notable game releases include "Time Explosion," which topped the iOS free chart, and "Douluo Continent: Soul Hunter World," which quickly ascended to the iOS free chart and ranked 13th on the iOS revenue chart [2] - The company continues to maintain strong product vitality with titles like "Seeking the Great Thousand" and "Time Grocery Store," which have implemented innovative marketing strategies to enhance user engagement [2] Strategic Focus - The company is committed to deepening its focus on MMORPG, SLG, card games, and simulation management genres, with over twenty key products in development across various themes [3] - The company has established a robust return system for investors through consistent cash dividends, share buybacks, and executive stock purchases, with total cash dividends reaching 5.778 billion yuan over the past three fiscal years [3] - Starting in 2024, the company will increase its dividend frequency from semi-annual to quarterly, reinforcing its commitment to a stable and sustainable dividend policy [3]