Core Viewpoint - Zulong Entertainment reported significant revenue growth in the first half of 2025, but still faced losses, indicating a potential for future profitability with ongoing challenges in R&D costs and overseas market expansion [1][8]. Revenue Growth and Financial Performance - In the first half of 2025, Zulong Entertainment achieved revenue of 634 million RMB, a 44.4% increase from 439 million RMB in the same period of 2024 [2][5]. - The company reported a loss of 11.7 million RMB, a substantial reduction of 91.3% compared to a loss of 134 million RMB in the previous year [1][8]. - Adjusted net loss was 7.7 million RMB, down 93.6% year-on-year [1][2]. Key Products Driving Growth - The mobile game "In the Name of the Shining" has become a star product for Zulong, achieving over 2 billion RMB in global revenue and surpassing previous years' average daily active users (DAU) in the first half of 2025 [3][4]. - New games "Dragon Tribe: Cassel's Gate" and "Treading the Wind" contributed significantly to revenue, with the former topping the iOS free charts upon release [4][6]. Market Performance and Challenges - Domestic revenue reached approximately 512 million RMB, a 68.3% increase, accounting for 80.7% of total revenue [5][6]. - Overseas revenue was 123 million RMB, a decrease of 9.5%, with its share dropping from 30.8% to 19.3% [6][8]. - The company plans to expand its successful titles into Southeast Asia and South Korea to seek overseas growth [6]. Future Outlook - The gaming industry is experiencing increased competition, with a shift from scale expansion to quality competition [8]. - Zulong's strategy of focusing on high-quality, diverse products and global expansion may lead to profitability in the second half of 2025 [8].

Core Insights - Zulong Entertainment's game "Shining Name" has successfully launched in South Korea, achieving the top position on both iOS and Google Play free game charts, marking a significant milestone in the company's global expansion strategy [1] - The game has previously topped charts in multiple regions including Hong Kong, Taiwan, Singapore, Malaysia, and Japan, demonstrating its strong market performance and user engagement [3] - The game has generated over 2 billion RMB in total revenue globally, indicating its commercial success [3] Group 1 - "Shining Name" offers a rich customization experience for players, catering to diverse aesthetic preferences across different regions, which has contributed to its popularity among female gamers [4] - The game leverages advanced technology, including the UE engine, to deliver high-quality graphics and realistic material representations, enhancing its appeal [4] - Zulong Entertainment has launched 24 mobile games in over 170 markets, with a total registered user base exceeding 200 million and total revenue surpassing 22 billion RMB [6] Group 2 - The company plans to expand its game "Dragon: Cassel's Gate" into Japan, South Korea, and other global markets in 2026, focusing on localized IP activities [7] - The gaming industry in China is experiencing a favorable policy environment, which aligns with Zulong's long-term strategy for global expansion [6] - According to data, China's self-developed games have seen overseas revenue reach 18.56 billion USD, reflecting a 13.39% year-on-year growth, showcasing the potential for further success in international markets [9]

Core Insights - The company has achieved a significant revenue growth of 44.4% year-on-year, reaching 634 million RMB in the first half of 2025, marking a third consecutive increase in revenue [1][2] - The business structure has been optimized, with game publishing and operation revenue accounting for 91.3% of total revenue, up 5.6 percentage points from the previous year [1][2] - The company has launched 24 premium mobile games, covering various genres and supporting multiple languages, enhancing its market presence [3] Financial Performance - The adjusted net loss has been significantly reduced by 93.6% compared to the same period last year, with operating cash flow consumption decreasing by 47.1% [2] - The revenue from game publishing and operation reached 579 million RMB, a year-on-year increase of 53.8% [2] Product Success - Key mobile games such as "In the Name of the Shining" and "Dragon Tribe: Castle Gate" have contributed significantly to revenue growth, with "In the Name of the Shining" achieving over 2 billion RMB in cumulative revenue globally [4] - The company has demonstrated strong long-term operational capabilities with older titles like "Dream Fantasy" and "Dragon Tribe Fantasy" showing positive growth in revenue and user engagement [5] Competitive Advantages - The company's high growth is attributed to its core capabilities in R&D, positioning, and operations, creating a competitive barrier that is hard to replicate [6] - R&D personnel make up 76% of the workforce, with a focus on technological innovation and cost control, ensuring continuous upgrades of successful games [6] Product Strategy - The company employs a strategy of deepening core categories while exploring emerging segments, effectively covering diverse user needs and mitigating market risks [7] - The integrated "R&D and operations" model allows for precise player demand understanding and timely game updates, maximizing product lifecycle value [8] Future Outlook - The company plans to launch seven new games from the second half of 2025 to 2027, covering various genres and targeting both domestic and international markets [9][11] - A gradual strategy of focusing on Asia before expanding globally is in place, with successful launches in Southeast Asia and plans for further market entries [11]

Core Viewpoint - Zulong Entertainment, a leading mobile game company in China, continues to demonstrate high growth potential through its commitment to product integrity and innovation [1] Revenue Growth and Business Performance - For the first half of 2025, Zulong Entertainment reported a revenue of 634 million RMB, representing a year-on-year increase of 44.4%, marking the third consecutive revenue increase [2][3] - The company's game publishing and operation revenue reached 579 million RMB, a significant increase of 53.8% year-on-year, accounting for 91.3% of total revenue, up by 5.6 percentage points [2][3] - Adjusted net loss was reduced by 93.6% compared to the same period last year, with operating cash flow consumption decreasing by 47.1% [3] Product Portfolio and Market Strategy - Zulong Entertainment has launched 24 premium mobile games, available in over 170 markets and supporting 14 languages, covering various genres including MMORPG, female-oriented, strategy card games, and SLG [4] - Key titles such as "In the Name of the Shining" and "Dragon Tribe: Castle of Cassel" have significantly contributed to revenue growth, with "In the Name of the Shining" achieving over 2 billion RMB in global cumulative revenue [5] Long-term Operational Capability - The company has demonstrated strong long-term operational capabilities, with older titles like "Dream Fantasy" and "Dragon Tribe Fantasy" showing positive growth in revenue and user engagement [6] - Zulong's core competencies in R&D, positioning, and operations have created a competitive barrier that is difficult to replicate [7] Future Growth Prospects - Zulong plans to launch seven new games from the second half of 2025 to 2027, covering various genres and targeting both domestic and international markets [10][12] - The company aims to adopt a gradual strategy of deepening its presence in Asia before expanding globally, with successful launches already in Southeast Asia [12] Conclusion - Zulong Entertainment's focus on a premium strategy, technological innovation, and integrated R&D and operations model has led to improved operational quality [12] - With a robust pipeline of new games and a clear global expansion strategy, the company is positioned for sustained growth and long-term value creation for investors [12]

Core Viewpoint - Zulong Entertainment (09990.HK) reported a significant increase in revenue for the first half of 2025, achieving 634.3 million yuan, a year-on-year growth of 44.4%, marking a successful "three consecutive increases" in revenue [1] Revenue Performance - The revenue growth of 44.4% in the first half of 2025 follows previous growth rates of 25.6% in 2024 and 55.5% in 2023, indicating a strong market performance [1] - The adjusted net loss was reduced by 93.6% compared to the same period last year, reflecting continuous improvement in operational conditions [1] Game Launches and Performance - The performance improvement is attributed to the successful launches of "Dragon Tribe: Cassel Gate" and "Treading Wind" in the second half of 2024 and the first half of 2025, respectively, along with the stable performance of "Shining Name" [1] - "Shining Name" achieved a historical high in monthly profit in January 2025, with total global revenue exceeding 2 billion yuan as of the announcement date [2] - "Treading Wind," a Chinese-style RPG developed using Unreal Engine 4, topped the iOS free games chart on its launch day in May 2025 [2] Global Strategy - Zulong Entertainment maintains a global strategy, focusing on a research and operation integration model to customize differentiated strategies for various markets [2] - The company aims to deepen local market engagement and enhance value while continuing to expand internationally [2] Game Quality and Operations - The company emphasizes a "research and operation integration" model to enhance game quality and extend revenue cycles, with several classic games maintaining stable long-term performance [3] - The gross margin remains above 70%, showcasing a competitive edge in the industry, supported by effective cost management and innovation in research and development [3] Future Outlook - Zulong Entertainment plans to continue its core strategies of quality, multi-category development, research and operation integration, and globalization [3] - The company aims to explore AI applications in game development, enhancing dynamic gameplay through intelligent NPCs and integrating user-generated and AI-generated content [3]

Core Viewpoint - Zulong Entertainment reported a significant increase in revenue and a reduction in adjusted net loss for the first half of 2025, indicating a strong performance driven by successful game launches and ongoing product popularity [1][2]. Financial Performance - In the first half of 2025, Zulong Entertainment achieved a revenue of 634.3 million yuan, representing a year-on-year growth of 44.4%, following growth rates of 25.6% in 2024 and 55.5% in 2023, marking a "three consecutive increases" in revenue [1]. - The adjusted net loss was reduced by 93.6% compared to the same period last year, reflecting continuous improvement in operational conditions [1]. Game Development and Strategy - The revenue growth was primarily attributed to the successful launches of "Dragon Tribe: Cassel Gate" and "Treading Wind," along with the stable performance of "Shining Name" [1]. - Zulong Entertainment has adopted a "research and operation integration" model, allowing real-time feedback from operations to inform game development, thereby increasing the likelihood of creating successful titles [3]. Global Expansion and Market Strategy - The company is committed to a global strategy, customizing approaches for different markets while focusing on local market characteristics to enhance game quality and service [2]. - "Shining Name" achieved over 2 billion yuan in cumulative revenue globally, while "Treading Wind" topped the iOS free game chart shortly after its launch [2]. Product Portfolio and Quality - Zulong Entertainment has developed a diverse portfolio of high-quality games, including MMORPGs, female-oriented games, strategy card games, and SLGs, maintaining a gross margin above 70%, which is competitive within the industry [3]. - The company plans to explore AI applications in game development, integrating smart NPCs and combining UGC with AIGC to enhance game dynamics [3].

Core Viewpoint - Zulong Entertainment reported a significant increase in revenue and a reduction in net loss for the first half of 2025, indicating a strong performance driven by successful game launches and ongoing product popularity [1][2]. Financial Performance - In the first half of 2025, Zulong Entertainment achieved a revenue of 634.3 million yuan, representing a year-on-year growth of 44.4%, following growth rates of 25.6% in 2024 and 55.5% in 2023, marking a "three consecutive increases" in revenue [1]. - The adjusted net loss was reduced by 93.6% compared to the same period last year, reflecting continuous improvement in operational conditions [1]. Game Development and Strategy - The revenue growth was primarily attributed to the successful launches of "Dragon Tribe: Cassel Gate" and "Treading Wind" in the second half of 2024 and the first half of 2025, respectively, along with the stable performance of "Shining Name" [1]. - Zulong Entertainment emphasizes a "research and operation integration" model, allowing real-time feedback from operations to inform game development, thereby increasing the likelihood of creating successful titles [3]. Global Expansion and Market Strategy - The company is committed to a global strategy, customizing approaches for different markets while focusing on local market characteristics to enhance game quality and service [2]. - "Dragon Tribe: Cassel Gate" received widespread acclaim, achieving high rankings in iOS sales charts in Hong Kong and Taiwan, and also performed well in Thailand upon its release [2]. Product Quality and Profitability - Zulong Entertainment maintains a gross margin above 70%, showcasing its competitive edge in the industry, supported by effective cost management and a strong global distribution system [3]. - The company plans to explore AI applications in game development, aiming to enhance game dynamics through intelligent NPCs and the integration of user-generated and AI-generated content [3].

Core Viewpoint - The Chinese cultural trade, particularly in the gaming sector, has seen significant success in international markets, with companies like 37 Interactive Entertainment leading the way in cultural globalization through innovative game development and distribution strategies [2][5]. Group 1: Company Overview - 37 Interactive Entertainment, established in 2009, is one of the earliest Chinese gaming companies to enter overseas markets, starting its international operations in 2012 and currently operating in over 200 countries and regions [2]. - The company has released more than 120 games, with overseas revenue reaching 5.722 billion yuan in 2024, accounting for approximately one-third of its total revenue [2]. Group 2: Cultural Globalization Strategy - The company emphasizes a deep integration of research and operations, requiring collaboration between development and distribution teams to understand local market preferences and cultural nuances [3]. - 37 Interactive Entertainment has successfully created original game IPs that incorporate elements of Eastern culture, such as Chinese martial arts and traditional opera, to engage international players [3]. Group 3: Technological Integration - The rapid advancement of artificial intelligence (AI) is influencing the gaming industry, with 37 Interactive Entertainment applying AI across various stages of game development, marketing, and operations [4]. - The company has developed over 400 AI applications to enhance market analysis, product development, advertising, and customer service, significantly improving efficiency and quality in game production [4]. Group 4: Future Directions - The company is focused on the transition from physical cultural exports to digital empowerment, aiming to deepen the integration of gaming and culture while leveraging AI and big data to create an intelligent gaming ecosystem [5].

Core Viewpoint - The company reported a decline in revenue and net profit for the first quarter of 2025 compared to the same period last year, attributed to the early promotional stages of new games and the natural decline in revenue from mature products [3][4]. Financial Performance - The company achieved operating revenue of 4.243 billion yuan in Q1 2025, a quarter-on-quarter increase of 3.45%, but a year-on-year decrease of 10.67% [3]. - The net profit attributable to shareholders was 549 million yuan, reflecting a year-on-year decline of 10.87% [3]. - Cash flow from operating activities decreased by 50.20% year-on-year, amounting to a reduction of 587 million yuan, primarily due to lower cash inflows from sales [8]. Product Development and Strategy - The company continues to implement its strategic goals, focusing on product quality, diversification, and global market expansion [3][4]. - New games such as "Time Explosion" and "Heroes No Flash" have shown strong market performance, with "Time Explosion" ranking 4th in the WeChat mini-game sales chart [4]. - The company has a diverse product pipeline, including various genres and themes, and is actively working on launching new titles to enhance player experience [4]. Financial Position Changes - The company's cash and cash equivalents increased by 12.12%, adding 613 million yuan, mainly due to increased net cash inflows from operating activities [7]. - Prepaid accounts increased by 47.50%, reflecting higher prepayments for revenue sharing and internet traffic purchases for new games [7]. - Deferred tax assets rose by 81.80%, attributed to temporary losses from new game promotions [7]. Shareholder Information - The company completed the cancellation of 5,626,600 shares, reducing the total share capital from 2,217,864,281 shares to 2,212,237,681 shares [10].

Group 1 - The company reported a revenue of approximately 628 million yuan and a gross profit of about 363 million yuan for the year 2024, achieving a profit attributable to equity holders of 51.12 million yuan, marking a turnaround from loss to profit year-on-year [1] - As of December 31, 2024, the company had a total of 98.28 million registered players, an increase of 11.24% year-on-year, with monthly active users averaging around 2.36 million and monthly paying users approximately 227,800; the ARPPU reached 265 yuan [1] Group 2 - The company continues to iterate on its self-developed games, with its flagship game "The Strongest Snail" achieving high rankings in free and best-selling game charts in multiple overseas markets, generating cumulative revenue of approximately 3.629 billion yuan from both domestic and international markets as of December 31, 2024 [2] - The company is actively developing its self-researched game "Project E," which is an innovative SLG game expected to enhance content and gameplay in 2025 [2] - The company has improved its long-term operational capabilities in game publishing, with overseas revenue growing from 28.47% to 43.93% year-on-year, indicating a significant enhancement in global publishing strength [2] - The company is steadily strengthening its core competitiveness in research and operations, promoting the globalization of its game products and further expanding its overseas market presence [2]