Core Viewpoint - The company,掌趣科技, reported a significant decline in both revenue and net profit for the first half of 2025, indicating ongoing challenges in its business operations and financial performance [1][3]. Financial Performance - The company achieved a revenue of 358 million yuan, a decrease of 23.44% compared to the same period last year [2]. - The net profit attributable to shareholders was 48 million yuan, down 65.58% year-on-year [2]. - The net profit after deducting non-recurring gains and losses was 50 million yuan, reflecting a 57.72% decline [2]. - The net cash flow from operating activities was -25 million yuan, a drop of 154.52% from the previous year [2]. - Basic and diluted earnings per share were both 0.02 yuan, down 60% from 0.05 yuan [2]. - The weighted average return on equity decreased to 0.98%, down 1.89 percentage points from the previous year [2]. Business Operations - The decline in revenue is attributed to ongoing development and adjustment of SLG game products, which have not yet been launched on a large scale, alongside a natural decline in revenue from mature game products due to their lifecycle [3]. - The gaming business revenue for the first half of the year was 330 million yuan, down 24.63% year-on-year, with a gross margin of 72.20%, a decrease of 4.57% [4]. - The company has been under financial pressure due to the decline in its main business, with a continuous drop in revenue for four consecutive years since 2021 [4]. - The number of R&D personnel has been reduced significantly from over 1,000 in 2020 to 477 by the end of 2024, indicating a strategic shift in resource allocation [4]. Shareholder Actions - The chairman of the company, Liu Huicheng, initiated a share reduction plan, intending to sell up to 27.2 million shares between June 5 and September 4, potentially raising around 165 million yuan based on the latest share price [5]. - As of June 30, Liu Huicheng still holds a 6.13% stake in the company after reducing his holdings by 3.3 million shares [5].