Company Overview - The company, Chuangmeng Tiandi, faced significant challenges this year, with its stock price dropping to a historical low of 0.68 HKD from an average of 2-3 HKD [1] - The flagship self-developed product, "Kara Bichu," has been in development for six years, with four years of research and two years of public testing, and has established a stable user base despite not being a blockbuster [1][3] - The company reported a turnaround in its financial performance, achieving profitability, with notable growth in long-term products and new releases [1][57] Product Development - "Kara Bichu" saw a 10% increase in monthly active users and a 75% increase in revenue in the first half of the year, finally achieving profitability in May [3] - The game features a unique "string transformation" gameplay mechanic, allowing characters to transform into 2D paper figures during combat, which has garnered positive player feedback [7][10] - The development team shifted focus from competitive gameplay to enhancing character value and social interaction, leading to a more casual gaming experience [19][24][36] Strategic Adjustments - The CEO, Chen Xiangyu, emphasized the importance of understanding player needs and fostering a collaborative environment, which has led to a more player-centric approach in game development [41][50] - The company has streamlined its operations by focusing on its core business and gradually divesting from non-gaming ventures, allowing for sustained investment in "Kara Bichu" [50][59] - The company aims to leverage its IP for long-term growth, with plans for merchandise and community engagement, as evidenced by the successful pre-sale of 5,000 figurines [55][68] Industry Insights - The competitive landscape for shooting games is intense, and the company recognizes the need for differentiation rather than direct competition with larger firms [60][63] - Innovations in gameplay mechanics, such as the "string transformation," are seen as critical for attracting players and retaining talent within the industry [63][64] - The company believes that the gaming industry offers unique opportunities for creativity and player engagement, contrasting with the complexities of offline business models [66][68]