Summary of Key Points from the Conference Call Industry Overview - The domestic self-developed online game revenue has shown significant growth, with mobile game revenue reaching 125.3 billion RMB, a year-on-year increase of 16.6% [1][3] - Mini-program game revenue reached 23.3 billion RMB, with a remarkable year-on-year growth of 40%, indicating a recovery in the gaming industry [1][3] - The overall gaming market in China saw actual sales revenue of 168 billion RMB in the first half of 2025, reflecting a year-on-year growth of 14.1% [3] Key Players and Performance - Leading gaming companies such as Tencent, NetEase, and miHoYo have achieved growth through stable operations of long-standing games [1][7] - Tencent expanded its market share in games like "CF" and "Delta Force," while NetEase's "Identity V" reached a historical revenue high [1][7] - Mid-tier companies have also shown strong innovation, with titles like Giant's "Supernatural Action Group" and G-bits' "Sword Legend" exceeding market expectations [1][8] Role of Gaming Community Platforms - Gaming community platforms like Taptap and Xiaohongshu are becoming crucial channels for game distribution and advertising, especially as user acquisition costs rise [1][5] - Taptap, as a leading gaming community, is expected to reach 100 million monthly active users (MAU) in the future, with significant advertising revenue potential [2][10] Policy Support - Increased policy support for the gaming industry has been noted, with the supply of game licenses rising, providing more opportunities for new product launches and stable operations of existing products [1][9] Taptap Insights - Taptap's MAU reached 44 million by the end of 2024, a 23% year-on-year increase, and is positioned as a primary distribution channel for game developers due to its no-commission model [1][13] - The platform's advertising revenue grew by approximately 22% in 2024, with ad exposure increasing by 43% [18] - Future projections suggest Taptap's MAU could reach between 110 million to 140 million, with potential annual advertising revenue of 4 to 6 billion RMB [19][21] Legend Box Insights - Legend Box focuses on the "Legend" genre games, with a monthly active user count of 400,000 to 450,000 and a repurchase rate exceeding the industry average by 200% [2][28] - The platform's core business model relies on advertising, with potential growth in live streaming revenue [30] - Future projections indicate that with exclusive IP rights, Legend Box could see its annual revenue grow significantly, potentially reaching 1.5 to 3 billion RMB [32] AI Developments - Kaiying Network is expanding into AI with products like the emotional companion game "Eve" and an AI game creation platform "Soon," which are expected to perform well upon launch [33] Future Outlook - Heartbeat Company is expected to see strong performance in the second half of 2025, driven by new product launches and high player engagement [25] - The gaming community's development trend indicates a shift towards community platforms for advertising, with Taptap and Legend Box being key players to watch [35]

Summary of Key Points from the Conference Call Industry Overview - The gaming industry is experiencing accelerated growth in the first four months of 2025, driven by low base effects, long-term operations, and new product launches, with overseas markets showing particularly strong performance, achieving a growth rate of approximately 18% in Q1 and maintaining a significant single-digit growth in April [1][3][9] - The overall valuation of the gaming industry is expected to rise from a range of 15-20 times to 20-25 times, contingent on sustained industry prosperity and influx of new capital [1][5] Company Performances Century Huatong - Benefiting from the success of "Whiteout Survival" and the domestic version "Endless Winter," with overseas monthly revenue reaching approximately $150 million and domestic revenue around $110 million [1][12] - The new game "King's Shot" launched in Q1 is projected to generate monthly revenue of $30-40 million, with optimistic annual performance expectations [1][12] Giant Network - Stable revenue from existing games, with the new game "Super Burning Action Group" showing increasing internal test data, achieving monthly revenue of $20-30 million in May [1][6][13] - The company is expected to see further revenue growth with increased marketing efforts [1][6] 37 Interactive Entertainment (Ji Bi Te) - Existing products "Wen Dao" and "Yi Nian Xiao Yao" maintain stable performance, while the new game "Wen Dao Chang Sheng" contributes additional revenue [1][6][14] - Upcoming new products are expected to continue generating interest and revenue in the second half of the year [1][6] Kying Network - The AI dating game "Evadix" has received positive reviews, with significant commercial potential and stable long-term operational capabilities [2][15] - Expected net profit for 2025 is projected to exceed 2 billion yuan, with two major titles, "Douluo Dalu" and "Tomb Raider Notes," set to launch in the second half of the year [2][16] Perfect World - Anticipated to become a major player in the domestic market, with expectations for a new product to generate revenue between 6 to 8 billion yuan, and optimistic projections reaching up to 10 billion yuan [17] - The company has shown significant improvement in Q1 2025, primarily driven by the "Zhu Xian" online game, with further mobile game releases expected to enhance revenue [17] Policy Environment - Increased support from government policies for the gaming industry, with various provinces implementing measures to promote local gaming industries, including stable issuance of domestic and imported game licenses [7][8] Market Trends - The overall market data from January to April 2025 indicates a recovery in revenue growth, with a notable performance from overseas markets and several companies exceeding expectations [9][10] - The upcoming summer peak season is expected to bring positive changes in sequential data, with a favorable policy environment supporting innovation and overseas business development [11] Conclusion - The gaming industry is on a positive trajectory, with various companies demonstrating growth potential and unique advantages. Kying Network and Perfect World are particularly noteworthy for their strong performance and future prospects, reflecting the overall positive trend in the gaming sector [18]