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]

昨日，西山居曝出重大人事调整。据一封内部信显示，现任CEO郭炜炜因个人原因提出辞去西山居CEO职务。董事会同意其辞任CEO，继续担任西山居首 席制作人，同时任命金山软件CEO兼西山居董事长邹涛担任代理CEO。郭炜炜直接向邹涛汇报工作。 郭炜炜辞任CEO，有人觉得意外，有人觉得在预料之中。有人认为是为金山游戏业绩不振背锅，也有人分析这是新品《解限机》表现不达预期所致。 解限机的痛，时代变迁的红利尽失 《解限机》，大概的确是快要死了。 这款机甲游戏在今年初测试时曾经创下31万人在线的峰值，7月上线Steam同时在线人数一度达13万，一时风头无两，成为西山居今年最寄予厚望的产品。 11月12日，在即将开始S2赛季的时候，郭炜炜又以制作人身份对外发布了一封公开信：承认游戏当前的诸多问题，但表示不会放弃，准备在听取玩家意 见后"再冲一次"。 然而游戏上线之后不到一个月的时间，玩家在线人数就出现断崖式下滑，跌到不足万人。9月19日，游戏S1赛季上线。尽管制作组做了很多努力，推出了 新的机甲，上线新玩法，调整了平衡机制，还参加了今年的TGS、AGF等展会加大自己的声量，想通过"听劝"人设来挽回人气，但效果并不明显。 然而， ...

Core Viewpoint - NetEase-S reported a strong performance in Q3 2025, with significant year-on-year growth in net income and net profit, driven primarily by its gaming segment [1][2] Financial Performance - Net income for Q3 2025 reached RMB 28.4 billion (USD 4 billion), an increase of 8.2% year-on-year [1] - Gross profit was RMB 18.2 billion (USD 2.6 billion), reflecting a year-on-year growth of 10.3% [1] - Net profit attributable to shareholders was approximately RMB 8.616 billion (USD 1.2 billion), marking a year-on-year increase of 31.77% [1] - Basic earnings per share stood at USD 0.38, with a quarterly dividend of USD 0.1140 per share [1] Gaming Segment Performance - Net income from gaming and related value-added services was RMB 23.3 billion (USD 3.3 billion), compared to RMB 22.8 billion in the previous quarter and RMB 20.9 billion in the same quarter last year [1] - Online gaming revenue accounted for approximately 97.6% of the gaming segment's net income, up from 97.1% in the previous quarter and 96.8% year-on-year [1] - Growth in online gaming revenue was driven by self-developed games such as "Dream of Jianghu" PC and "Nirvana in Fire" mobile games, as well as several licensed games [1] Future Outlook - The company plans to allocate more resources to evergreen projects and provide opportunities for innovative teams [2] - Upcoming game "Forgotten Sea" is set to launch in 2026, with additional titles like "Infinite" and "Return to Tang" in the pipeline [2] - Focus on enhancing the global capabilities of local teams and monitoring the progress of key new games [2]

Core Viewpoint - The recent changes in the "Delta Action" gameplay have led to significant backlash from the player community, with 12 million players expressing their dissatisfaction due to the forced competitive nature of the game [1] Group 1 - The "Delta Action" update has eliminated the popular "shared home" gameplay, pushing players towards mutual harm [1] - The drastic changes implemented by the developers have caused widespread outrage among the player base [1] - The involvement of a character likened to "Cyber Jiaxu" suggests potential tools or strategies that could assist the developers in managing player feedback and game dynamics [1]

Group 1 - The company Dreamland (01119.HK) announced a capital agreement on September 29, 2025, to issue approximately 166 million shares at a subscription price of HKD 1.098 per share [1][2] - The subscription price represents a premium of approximately 4.57% compared to the closing price of HKD 1.050 per share [2] - The shares issued under the capital agreement and subscription agreement will account for approximately 13.09% of the existing issued share capital and approximately 11.57% of the enlarged issued share capital [2] Group 2 - The total proceeds from the issuance of approximately 166 million shares to the capital agreement subscriber will be approximately HKD 183 million [3] - The capital agreement will not generate any cash proceeds, as all proceeds will be used to offset a total of USD 23.49 million (approximately HKD 183 million) in royalties owed to the capital agreement subscriber [3] - The estimated net proceeds from the subscription will be approximately HKD 76.33 million, which the company plans to use for game product promotion and general working capital [3]

Core Viewpoint - Baio Family Interactive (02100) expects significant revenue growth and profitability turnaround, leading to an over 8% stock price increase following the earnings announcement [1] Group 1: Financial Performance - The company anticipates revenue of approximately RMB 295 million to 310 million for the first half of 2025, representing a year-on-year increase of about 8.3% to 13.8% [1] - The expected net profit after tax is projected to be between RMB 5.2 million and 6.2 million, indicating a turnaround from previous losses [1] Group 2: Growth Drivers - The revenue growth is attributed to the continuous update of existing game content and the launch of new themed versions, enhancing user experience [1] - This strategy not only attracts new users but also contributes to the growth of active and paying user bases, thereby driving revenue increase [1]

Core Viewpoint - The company, Bai Ao Family Interactive, anticipates achieving revenue of approximately RMB 295 million to 310 million in the first half of 2025, representing a year-on-year increase of about 8.3% to 13.8%, with a projected net profit of RMB 5.2 million to 6.2 million, indicating a turnaround from losses [1] Group 1: Revenue and Profit Expectations - The expected revenue for the first half of 2025 is RMB 295 million to 310 million, reflecting a year-on-year growth of approximately 8.3% to 13.8% [1] - The company forecasts a net profit of RMB 5.2 million to 6.2 million, indicating a return to profitability [1] Group 2: Factors Contributing to Growth - The growth is primarily attributed to the continuous update of existing game content and the launch of new themed versions, which enhance user experience and attract new users [1] - This strategy has led to an increase in both active users and paying users, thereby driving revenue growth [1] Group 3: Future Outlook and Strategy - The company plans to focus on core gaming segments and refine IP operations to deeply explore user needs, aiming to create an exceptional gaming experience [1] - There is an intention to creatively integrate traditional Chinese culture into core IPs to extend the lifecycle of existing games [1] - The company is also preparing multiple new products and exploring technological empowerment in gaming while strengthening its global presence to identify new growth opportunities [1]

Group 1 - Company Fish Technology announced the acquisition of properties in Beijing for a total price of RMB 50.3 million, consisting of office units and parking spaces with a total area of 1,770.22 square meters and 129.53 square meters respectively [2] - The properties are located in a strategic area of Beijing's central business district, which is considered one of the prime commercial zones, and the company believes this acquisition represents a long-term investment opportunity despite the current downturn in the real estate market [2] - The acquisition is expected to provide stable rental income in the long term, as the company has referenced past rental income data and recent rental prices of comparable properties in the area [2] Group 2 - In 2024, Fish Technology achieved a revenue of RMB 277 million, reflecting a year-on-year growth of 22.35%, but faced significant pressure on profits with a net loss of RMB 44.39 million, marking a shift from profit to loss [3] - The main source of revenue for the company comes from game operations, accounting for 86.29% of total revenue, with RMB 239 million generated from this segment [3] - The company plans to focus on the long-term operation of existing popular games to maintain stable cash flow and aims to expand into overseas markets to diversify revenue sources [3]

Core Viewpoint - The article emphasizes the importance of game operation in the current era of stagnant growth in the gaming industry, highlighting that effective player management and engagement are crucial for retaining users and extending the lifecycle of games [8][16][54]. Group 1: Game Operation Challenges - The gaming industry is transitioning into a phase where retaining existing users is more critical than acquiring new ones, as evidenced by a mere 0.94% growth in China's gaming user base in 2024 [15][16]. - The operational strategies of game companies must adapt to the new reality of stagnant user growth, necessitating a focus on player retention and satisfaction [16][54]. - A significant operational incident in the game "绝地潜兵2" illustrates how poor management can lead to player dissatisfaction, despite initial successes [5][7]. Group 2: Player Engagement Strategies - Effective player operation involves understanding user behavior and proactively addressing potential churn risks, with companies employing data-driven strategies to monitor player engagement [27][30]. - Companies are increasingly using personalized communication and incentives to keep players engaged, such as sending tailored messages or rewards to those showing signs of disengagement [28][30]. - The concept of "超预期服务" (exceeding expectations) is highlighted, where companies go beyond standard service to create emotional connections with players, thereby enhancing loyalty [42][45]. Group 3: Historical Context and Evolution - The evolution of game operation practices over the past two decades reflects a shift from basic customer service to sophisticated user lifecycle management, driven by technological advancements and market competition [46][50]. - The rising costs of acquiring new players have made it imperative for companies to invest in retaining existing users, as the cost of acquiring a light user has increased to 35-40 yuan by 2024 [53][54]. - Historical insights reveal that early game companies did not prioritize extensive user engagement, but the current landscape demands a more nuanced approach to player relationships [56][58].

Core Viewpoint - The article emphasizes the importance of game operation in the current market, highlighting that success or failure often hinges on effective player engagement and retention strategies in a saturated gaming environment [6][18][56]. Group 1: Game Operation and Player Engagement - The recent incident in "Battlefield 2" illustrates how crucial game operation is, as player dissatisfaction arose from perceived operational flaws despite the game's initial success [3][5]. - Tencent's strategic officer noted that stagnation in a game often points to issues within the operational team rather than the game itself, stressing the need for the right personnel to manage player engagement [15]. - The gaming industry is transitioning from a phase of rapid growth to one focused on retaining existing players, making player operation more critical than ever [17][18][19]. Group 2: Challenges in Player Retention - In 2024, China's gaming user growth was only 0.94%, indicating a shift towards a more competitive landscape where retaining existing players is paramount [17]. - Companies are now tasked with keeping older games engaging for long-term players, which presents unprecedented challenges for player operation roles [19][30]. - Effective player operation involves monitoring user behavior and intervening before players decide to leave, utilizing data-driven strategies to enhance user experience [28][30]. Group 3: Evolution of Game Operation - The evolution of player operation has been significant, moving from basic customer service to a comprehensive lifecycle management approach that addresses user needs at every stage [49][52]. - The cost of acquiring new players has increased dramatically, necessitating a focus on retaining existing users to justify the investment made in acquiring them [55][56]. - Companies are learning from successful long-standing games, implementing strategies to extend their lifecycle and maintain player interest [57][58]. Group 4: The Role of Player Operation Teams - Player operation teams are now expected to provide "exceeding expectations" services, creating emotional connections with players to enhance retention [43][48]. - Successful player operation involves not just addressing complaints but also proactively engaging with players through personalized interactions and community-building activities [43][44][67]. - The emotional aspect of player operation is highlighted, as operators often form bonds with players, which can lead to increased loyalty and reduced churn [66][72].