Summary of G-bits Conference Call Company Overview - **Company**: G-bits - **Industry**: Mobile and PC Gaming Key Points and Arguments Financial Performance - **Mobile Game Performance**: - "Ask the Dao Mobile Game" experienced a slight year-on-year decline but remained stable quarter-on-quarter. No significant growth was observed in November 2024 due to lack of special services [2][6] - "Friends Digging Treasure" had an average monthly revenue of less than 100 million RMB in Q3 and Q4, showing no significant changes [2][6] - "Ask the Dao PC Game" saw a moderate year-on-year decline from October to November, potentially due to version updates and post-pandemic user shifts [2][6] New Game Releases - **"Sword Legend"**: - Domestic version saw a slight decline in Q3 but did not meet expected stability; overseas versions in Hong Kong, Macau, and Japan showed similar trends [2][6] - Expected revenue for Q4 2025 is between 150 to 200 million RMB, with total revenue projected around 300 million RMB including overseas markets [2][9] - **New Game User Retention**: - A new game showed a slight decline in user retention, prompting design and gameplay adjustments, with a new version planned for January 2026 [2][8] - Compared to "One Thought of Immortality," the new game performed poorly, with September and October activities failing to significantly boost revenue [2][8] Revenue Structure and Marketing Strategy - **Revenue Changes**: - Significant changes in revenue structure were noted for "Friends Digging Treasure" since its launch, with high revenue sharing percentages from platforms like Tencent and Apple [3][4] - G-bits focuses on iOS for new game promotions, utilizing KOLs and KOCs for community marketing, with controlled costs and no reliance on high-profile celebrity endorsements [3][13][14] User Engagement and Retention - **User Feedback**: - "Longing for the Wild" received positive feedback from core users, but broader user performance remains uncertain [3][17] - The company aims to balance long-term operations and profitability while assessing the impact of new games on existing IPs [3][7] Operational Adjustments - **Team Structure**: - The company has seen a reduction in employee numbers from approximately 1,400 to around 1,100 due to project terminations, retaining core talent for new projects [22][23] - The issuance team remains stable, with a focus on competitive internal structures to enhance project outcomes [15][27] Future Outlook - **Financial Projections**: - New products are expected to have limited short-term profit contributions due to initial investment phases, with a gradual increase in revenue anticipated [12][19] - The company plans to conduct regular evaluations of project performance, leading to frequent but minor adjustments in strategy [24] Market Positioning - **Competitive Landscape**: - The Japanese market shows good potential for user lifecycle payments, but initial payments are low, with no immediate improvements [10] - The company is cautious about expanding into other regions until existing markets are stabilized [10] Conclusion - G-bits is navigating a challenging gaming landscape with mixed performance across its titles, focusing on strategic adjustments in marketing, user engagement, and operational efficiency to enhance profitability and market presence [2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31]