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].