Core Viewpoint - Tencent's gaming business has shown significant growth under its "Evergreen Game Strategy," with 2024 revenue reaching 197.7 billion yuan, a year-on-year increase of 9.9% [1][36]. Group 1: Financial Performance - Tencent's international gaming revenue reached 58 billion yuan, growing by 9%, while domestic revenue was 130.7 billion yuan, up by 10% [1]. - The "Evergreen Game Strategy" has resulted in an increase in Tencent's long-standing game portfolio from 8 to 14 titles globally over three years [1][13]. Group 2: Key Games and Growth - Flagship titles like "Honor of Kings" and "Peacekeeper Elite" continue to be major revenue drivers, while "Teamfight Tactics" has shown strong growth after four years [3]. - The newly launched game "Delta Action," which debuted in September last year, has already surpassed 40 million registered players and achieved a daily active user count of over 12 million within six months [3][21]. Group 3: Strategic Focus - Tencent's management has emphasized focusing on maintaining and growing existing evergreen games while developing new titles with the potential to become evergreen [5][11]. - The company aims to concentrate resources on fewer games, ensuring strong positioning and high production value to exceed player expectations [6][11]. Group 4: Market Trends and Development - The gaming industry is experiencing rising production costs, with successful games needing to differentiate themselves through gameplay, visuals, or narrative [8][10]. - Tencent's "Evergreen Game" concept is a response to the industry's shift towards long-term product viability, emphasizing quality over quantity [11][22]. Group 5: Game Development and Innovation - "Delta Action" exemplifies flexible and differentiated development strategies, incorporating popular gameplay elements and continuous iteration to maintain player interest [14][15]. - The game has achieved significant market traction, ranking in the top 5 of gaming popularity charts and generating substantial revenue from both PC and mobile platforms [19][32]. Group 6: Future Outlook - Tencent's focus on cross-platform gaming is expected to drive future growth, with "Delta Action" serving as a model for successful cross-platform integration [26][32]. - The company's stock has seen a cumulative increase of 43.26% in 2024, reflecting positive market sentiment towards its gaming strategy [37].